products to which such contracts or benefits apply, or in contracts relating thereto, or in the stock or membership interests of any association or corporation handling such commodities or products (7 U.S.C. 610(g)).

(4) An officer or employee being the beneficiary of or receiving any fee, commission or gift for or in connection with any transaction or business under the Consolidated Farmers Home Administration Act of 1961, other than such salary, fee or compensation as he may receive as an officer or employee. Members of a FHA County Committee making any certification with respect to a loan to purchase any land in which they or any person related to them have (7 U.S.C. 1986).

(5) The making of false statements in connection with activities of the Commodity Credit Corporation or embezzlement or conversion of anything of value belonging or pledged to the Corporation, or conspiring to commit such acts (15 U.S.C. 714m).

(6) The acceptance of any fee, gift, or other consideration for compromise, adjustment, or cancellation of farm indebtedness (18 U.S.C. 217).

(7) The embezzlement of money or property of the Federal Crop Insurance Corporation and the Farmers Home Administration, and of pledged or entrusted property (18 U.S.C. 657).

(8) The conversion of property mortgaged or pledged to the Farmers Home Administration and the Federal Crop Insurance Corporation, with intent to defraud (18 U.S.C. 658).

(9) The making of false entries, or participation in any benefit through any transaction in connection with Departmental activities concerned with agricultural loans (18 U.S.C. 1006).

(10) Speculation in agricultural commodities to which the Federal Crop Insurance Act applies or to contracts relating thereto, or stock or membership interests of corporations or associations handling such commodities by any person administering such law (18 U.S.C. 1903).

(11) The compilation or issuance of false crop reports (18 U.S.C. 2072).

(12) The acceptance of money or other things of value given with intent to influence a decision in connection with examination of animals, meats, and meat products by inspectors or other employees, or when received from a person or

firm engaged in interstate or foreign commerce given for any purpose whatever (21 U.S.C. 90),

(13) Any person using to his own advantage or improperly revealing information concerning trade secrets acquired under the Poultry Products Inspection Act (21 U.S.C. 458).

(y) This part does not purport to paraphrase or enumerate all restrictions imposed on employees. The omission of a restriction in no way relieves an employee of the legal effect of such restrictions.

[31 F.R. 8528, June 18, 1966, as amended at 33 F.R. 954, Jan. 26, 1968]

Subpart C-Counseling and Advisory Service

§ 0.735-31 Counseling and advisory service.

(a) In accord with the Executive order, the Executive Assistant to the Secretary is designated to serve as the Department Counselor and designee to the Commission on matters covered by the regulations in this part. He shall be responsible for coordination of the Department's counseling service and for assuring that counseling and interpretations on questions of conflicts or apparent conflict of interest and other matters discussed in the regulations in this part are available to Deputy Counselors here and after designated.

(b) The Deputy Counselors for the Department will be the Director of Personnel and those employees with employment authority who are so designated to be Deputy Counselors by the Agency Heads.

(c) All employees are to be notified of the availability of counseling and by whom this service is provided. Initial notification must be made within 90 days after Commission approval of this part (the Department's regulations), and periodically thereafter. A new employee or special Government employee appointed after this notification must be notified at the time of his entrance on duty.

(d) Each new employee shall be furnished at the time of hire a copy of the regulations in this part. Current employees shall be furnished a copy of these regulations within 90 days following issuance. Subsequent changes to these regulations will be furnished employees upon issuance. Each employee shall be reminded of the regulations in this part semiannually.

(a) This deals with statutory provisions of conflict of interest as contained in Title 18, U.S. Code. In this part the term "special Government employee" is as defined in 0.735-2(e).

(b) Employees cannot:

(1) Represent another, except in the performance of official duties, before a court or Government agency in a matter in which the United States is a party or has an interest, whether the representation is for pay or not.

(2) Participate in a governmental capacity in any matter in which he, his spouse, minor child, outside business associate, or person with whom he is negotiating for employment has a financial interest.

(3) Represent, after his Government employment has ended, anyone other than the United States in a matter in which the United States is a party or has an interest, if he participated personally and substantially in the matter for the Government at any time during his employment. This is a permanent bar.

(4) For 1 year after termination of Government employment, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest and which was within the boundaries of his official responsibility at any time during the last year of his Government service. Official responsibility means the direct administrative or operating authority to take official action. This applies whether the authority was intermediate or final and whether exercised personally or through subordinates, if it was to decide Government's action.

(5) Receive any supplementation of salary for Government services from a private source.

(6) Directly or indirectly solicit, accept or agree to accept for himself or for another, anything of value to influence his performance of official duty or make opportunity for the commission of any fraud on the United States.

(c) The restrictions imposed by paragraph (b) of this section do not prevent an officer or employee, if not inconsistent with the faithful performance of his duties, from acting without compensation as agent or attorney for any person who is the subject of disciplinary, loyalty, or

other personnel administration proceedings in connection with those proceedings.

(d) Special Government employees as defined in paragraph (a) of this section cannot:

(1) Act as attorney or agent or represent anyone, except in the discharge of official duties, before a court or Government agency in a matter in which the United States is a party or has an interest and in which he participated personally and substantially for the Government.

(2) Represent anyone except in the performance of official duties, in a matter pending before the agency in which he serves, unless he has served there no more than 60 days during the past 365 days, whether or not he has ever participated in the matter personally and substantially for the Government.

(3) Participate for the Government in any matter in which he, his spouse, minor child, outside business associate, or person with whom he is negotiating for employment has a financial interest.

(4) After the termination of Government employment, represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest, and in which he participated personally and substantially for the Government.

(5) For 1 year after termination of Government employment represent anyone other than the United States in connection with a matter in which the United States is a party or has an interest, and which was within the boundaries of his official responsibility during the last year of his Government service.

(e) The restriction on employees against receipt of salary from a private source for Government work does not apply to special Government employees. Subpart E-Statements of Employment and Financial Interest

§ 0.735-51 Employees required to submit statements.

Except as provided in § 0.735-52 the following employees shall submit a statement of employment and financial interests on USDA Form AD-392 in accordance with this part:

(a) Employees paid at a level of the Executive Schedule in Subchapter II of Chapter 53 of Title 5, U.S.C.

(b) Employees classified at GS-13 or above under section 5332 of Title 5, United States Code, or at a comparable pay level under another authority, whose basic duties and responsibilities require the incumbents to exercise judgment in making a Government decision or in taking a Government action in regard to:

(1) Contracting or procurement, including the appraisal or selection of contractors; the negotiation or approval of contracts; the supervision of activities performed by contractors; the inspection of materials for acceptability; the procurement of materials, services, supplies, or equipment other than those common items available from the Department or GSA inventories; the proposal, acceptance, obligation, or settlement of payments or claims or negotiations in connection therewith;

(2) Administering grants or subsidies;

or monitoring

(3) Regulating or auditing private or other non-Federal enterprise, such as inspectors and graders in regulatory and grading services, and auditors and investigators of the Office of the Inspector General;

(4) Other activities where the decision or action has an economic impact on the interests of any non-Federal enterprise;

(5) Employees appointed as Hearing Examiners under section 3105 of Title 5 of the U.S. Code.

(c) Employees classified at GS-13, or above, under section 5332 of Title 5, United States Code, or at a comparable pay level under another authority, who are in positions which the agency has determined have duties and responsibilities which require the incumbent to report employment and financial interests in order to avoid involvement in a possible conflicts-of-interest situation and carry out the purpose of law, Executive order and this part.

(d) The following positions classified below GS-13 under Section 5332 of Title 5, United States Code, are specifically required to submit statements of employment and financial interest: State Administrative Officers, GS-12, in the Soil Conservation Service when they have authority to approve construction and/or procurement contracts and Operating Loan Officers, Real Estate Loan Officers or Community Service Officers,

GS-12, in the Farmers Home Administration when they serve as the top loan officer in the State Office Specialty position.

[33 F.R. 954, Jan. 26, 1968] § 0.735-52 Exceptions.

(a) A statement of employment and financial interests is not required from a Presidential appointee covered by section 401(a) of the Executive order. Such appointees are subject to separate reporting requirements under section 401 of the Executive order.

(b) Employees in positions that meet the criteria in paragraph (b) of § 0.73551 may be excluded from the reporting requirement when the Department Counselor determines that:

(1) The duties of a position are such that the likelihood of the incumbent's involvement in a conflict-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 employment and financial interests is not necessary because of the degree of supervision and review over the incumbent or the inconsequential effect on the integrity of the Government.

(c) Exceptions will be considered by the Department Counselor at the request of the Agency Head.

(d) An employee shall be afforded the opportunity for a review, through the Departmental grievance procedure, as described in AG Chapter 771, of the designation of his position as one requiring the submission of a statement of employment and financial interests.

[33 F.R. 954, Jan. 26, 1968]

§ 0.735-53 Identification of employees required to submit statements.

For control and reporting purposes, those employees required to submit statements shall be specifically identified in the personnel records system.

§ 0.735-54 Time and place for submission of employees' statements.

(a) An employee required to submit a statement of employment and financial interests under the regulations in this part shall submit that statement to the personnel officer designated by the Agency Head not later than 90 days after the effective date of this part if employed on or before that effective date; or 30

days after his entrance on duty, but not earlier than 90 days after the effective date, if appointed after the effective date. (b) Statements of employment and financial interests executed by officials of the immediate staff and offices of the Office of the Secretary, Agency heads and deputies, and Schedule C employees shall be referred directly to the Director of Personnel for his determination.

(c) Deputy Counselors are responsible for insuring that employees subject to the reporting and requirements of the regulations in this part are notified of the reporting requirements.

[31 F.R. 8528, June 18, 1966, as amended at 33 F.R. 954, Jan. 26, 1968]

§ 0.735-55 Supplementary statements.

(a) Changes in, or additions to, the information contained in an employee's statement of employment and financial interests shall be reported in an annual supplementary statement as of March 31 each year. If no changes or additions occur, a report so stating is required. Notwithstanding the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of the conflicts-of-interests provisions of section 208 of Title 18, United States Code, or Subpart B of this part.

[33 F.R. 954, Jan. 26, 1968]

organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed "business enterprises" and are required to be included in employee's statement of employment and financial interest.

§ 0.735-58 Information not known by employee.

If any information required to be included on a statement of employment and financial interest, or supplement thereto, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall ask such person to furnish the information in his behalf.

§ 0.735-59 Types of interests to be reported.

The financial statements shall include the following:

(a) A list of the names of all corporations, companies, firms, or other business enterprises, partnerships, nonprofit organizations and educational or other institutions with which the employee is connected as an employee, officer, owner, director, trustee, partner, advisor, or consultant, or in which he has any continuing financial interest through a pension or retirement plan, shared income or otherwise as a result of any current or prior employment or business or professional associations, or in which he has any financial interest through the ownership of stock, stock options, bonds, securities, or other arrangements including trusts. Shares in Credit Unions, Building and Loan Associations, social or religious organizations, or deposits in Savings and Loan Associations and banks need not be reported.

(b) A list of the names of his creditors other than those to whom he may be indebted by reason of a mortgage on property which he occupies as a personal residence or to whom he may be indebted for current and ordinary household and living expenses such as household furnishings, automobile, education, vacation, and similar expenses. Indebtedness on owner-occupied farms must be reported.

(c) A list of interests in real property or rights in land other than property which the employee occupies as a personal residence. Owner-occupied farms

The statements of employment and financial interests and supplementary statements required under this part are in addition to, and not in substitution for, or in derogation of, any similar requirement imposed by law, the Executive order, or regulation. The submission of a statement or supplementary statement by an employee does not permit him or any other person to participate in a matter in which his or the other person's participation is prohibited by law, the Executive order, or the regulations in this part.

[31 F.R. 8528, June 18, 1966; 33 F.R. 955, Jan. 26, 1968]

§ 0.735-61

Specified provisions for special Government employees.

(a) Except as provided in paragraph (b) of this section, each special Government employee shall submit a statement of employment and financial interests on USDA Form AD-392A which reports:

(1) All other employment; and

(2) The financial interests of the special Government employee which relate either directly or indirectly to the duties and responsibilities of the special Government employee with the Department.

(b) An Agency Head may waive the requirement in paragraph (a) of this section for the submission of a statement of employment and financial interests in the case of a special Government employee who is not a consultant or expert when the Agency Head finds that the duties of the position held by that special Government employee are of a nature and at such a level of responsibility that the submission of the statement by the incumbent 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 but do not include:

(1) A physician, dentist, or allied medical specialist whose services are procured to provide care and service to patients;

or

(2) A veterinarian whose services are procured to provide care and service to animals.

(c) A statement of employment and financial interests required to be submitted under this section shall be submitted to the Agency Head of the agency in which the special Government employee is to serve not later than the time of employment. Each special Government employee shall keep his statement of employment and financial interests current throughout his employment with the Department by the submission of supplementary statements. [31 F.R. 8528, June 18, 1966, as amended at 33 F.R. 955, Jan. 26, 1968]

§ 0.735-62 Review of statements and determination of conflicting inter

ests.

(a) The Agency Head, or the Deputy Counselors as described in § 0.735-31(b) shall promptly review each statement of employment and financial interests submitted under § 0.735-54 (a) and supplementary statements for the purpose of disclosing a conflict of interest or apparent conflict of interest.

(b) In any case in which the review raises a question as to whether a conflict exists, the matter will be resolved promptly at the lowest possible level. The employee shall be provided an opportunity to explain the conflict or appearance of conflict of interest. When the conflict or appearance of conflict is not so resolved, the case shall be referred to the Director of Personnel for a ruling. The Director of Personnel shall seek the adIvice of the Office of the General Counsel prior to ruling on the case. Any case that cannot be resolved by the Director of Personnel shall be submitted to the Secretary through the Department Counselor for final determination.

[33 F.R. 955, Jan. 26 1968]

$ 0.735-63 Disposition of conflicting in

terests.

(a) Upon being advised that an interest, indebtedness or employment is in conflict with his official duties and that remedial action is required, the employee I will take immediate action to end the conflict of interest and advise the responsible officials of action taken in this respect.