ees for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an officer or employee receiving less pay than themselves (5 U.S.C. 7351). However, this section does not prohibit a voluntary gift of nominal value or donation in nominal amount made on a special occasion such as marriage, illness or retirement. [32 F.R. 12179, Aug. 24, 1967]

§ 40.735-7 Use of Government facilities, property, and manpower.

DoD personnel will not directly or indirectly use, or allow the use of, government property of any kind, including property leased to the government, for other than officially approved activities. Government facilities, property, and manpower, such as stenographic and typing assistance, mimeograph and chauffeur services, may be used only for official government business. DoD personnel have a positive duty to protect and conserve government property, including equipment, supplies, and other property entrusted to them. This section is not intended to preclude the use of government facilities for activities which would further military-community relations provided they do not interfere with military missions.

§ 40.735-8 Use of civilian and military titles in connection with commercial enterprises.

(a) All civilian personnel, and military personnel on active duty, are prohibited from using their civilian and military titles or positions in connection with any commercial enterprises or in endorsing any commercial product. The foregoing shall not be deemed to preclude publication by such personnel of books or articles which identify them as author by reference to their military or civilian title or position, provided that publication of such material is permitted under § 40.735-9 (d) and has been cleared under existing DoD procedures. (See DoD Directive 5230.9.)

(b) All retired military personnel and all members of reserve components, not on active duty, are permitted to use their military titles in connection with commercial enterprises. Such use of military titles shall in no way cast discredit on the military services or the DoD. Such use is prohibited in connection with

§ 40.735-9 Outside employment of DoD personnel.

(a) DoD personnel shall not engage in outside employment or other outside activity, with or without compensation, which:

(1) Interferes with, or is not compatible with, the performance of their Government duties;

(2) May reasonably be expected to bring discredit on the Government or the DoD agency concerned; or

(3) Is inconsistent with § 40.735-5 (a), including such inconsistent acts as the acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which that acceptance may result in, or create the appearance of, conflicts of interest.

(b) No enlisted member of the armed forces on active duty may be ordered or permitted to leave his post to engage in a civilian pursuit or business, or a performance in civil life, for emolument, hire, or otherwise, if the pursuit, business, or performance interferes with the customary or regular employment of local civilians in their art, trade or profession.

(c) An active duty officer of the regular Navy or Marine Corps may not be employed by any person furnishing Naval supplies of war materials to the United States and continue to receive his service pay.

(d) DoD personnel are encouraged to engage in teaching, lecturing, and writing. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing that is dependent on information obtained as a result of his Government employment, except when that information has been published or is available to the general public or will be made available on request, or when the agency head 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 civilian Presidential appointee 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 his agency or which draws substantially on official data or ideas which have not become part of the body of public information.

(e) No civilian employee may engage in outside employment under a State or local government except in accordance with Part 734 of the Civil Service regulations (5 CFR Part 734).

(f) This section does not preclude DoD personnel from:

(1) Participation in the activities of national or State political parties not proscribed by law or regulation.

(2) Participation in the affairs or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational, nonprofit recreational, public service, or civic organization.

DoD personnel shall not participate, while on Government-owned or leased property or while on duty for the Government, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling 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 Order 10927 and similar agency-approved activities.

which the agency determines does not, under the circumstances, reflect adversely on the Government as his employer. In the event of dispute between an employee and an alleged creditor, this section does not require an agency to determine the validity or amount of the disputed debt.

§ 40.735-12 Information to personnel.

(a) New DoD personnel will be informed of the standards of conduct specified in this part upon employment or entry on duty. These standards of conduct will also be brought to the attention of all DoD personnel by appropriate means upon promulgation and at least semiannually thereafter.

(b) The attention of DoD personnel is directed to each statute relating to ethical and other conduct that is referred to in this part and in Appendix B to this part. DoD personnel will be advised how to obtain additional clarification of the standards of conduct set forth in this part and related statutes, rules, and regulations. For this purpose each of the military departments and Defense agencies shall designate one or more legal officers as deputy counselors who shall be responsible for providing advice and assistance on all matters relating to conduct and conflict of interest covered by this part and for reviewing statements of employment and financial interest.

(c) (1) Appropriate officials in the office of the Secretary of each military department and Head of each Defense agency shall be designated as the counselor for such department or agency and shall be responsible for proper coordination and final disposition of all problems relating to conflicts of interest and for the review of statements of employment and financial interest in accordance with regulations to be prescribed by the respective Secretaries or Agency Heads in accordance with subparagraph (2) of this paragraph. In the Office of the Secretary of Defense, the General Counsel of the DoD or his designee will be responsible for these matters.

(2) Regulations governing the review of statements of employment and financial interests shall provide that:

(i) Whenever such review discloses a conflict or apparent conflict of interests, the employee concerned is entitled to an

opportunity to explain the conflict or appearance of conflict.

(ii) If the conflict or appearance of conflict is not resolved on review by the explanation made by the employee, the information concerning the matter shall be submitted to the appropriate Secretary or Agency Head, or his designee, after review by the counselor designated under subparagraph (1) of this paragraph.

(iii) The resolution of a conflict or apparent conflict of interest either on review or after referral to the appropriate Secretary or Agency Head, or his designee, shall be effected promptly so that the conflict or appearance of conflict is ended. The resolution of the conflict or appearance of conflict may be accomplished by one or more means, such as changes in assigned duties, divestment of the conflicting interest, disqualification for a particular assignment, or disciplinary action. The resolution, whether by disciplinary action or otherwise, shall be effected in accordance with applicable laws, Executive orders, and regulations. § 40.735-13 Reporting suspected violations.

DoD personnel who have information which causes them to believe that there has been a violation of a statute or policy set forth in this part will promptly report such incidents to their immediate superiors. If the superior believes there has been a violation, he will report the matter for further action in accordance with existing procedures. Any question or doubt on the part of the immediate superior will be resolved in favor of reporting the matter.

§ 40.735-14 Statement of employment and financial interests.

(a) DoD personnel required to submit statements. (1) Employees paid at a level of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code.

(2) Board members of the Armed Service Boards of Contract Appeals.

(3) DoD personnel classified at GS-13 or above under section 5332 of title 5, United States Code, or at a comparable pay level under another authority, or members of the military in the rank of Lieutenant Colonel, Commander or above whose basic duties and responsibilities

require the incumbent to exercise judgment in making a Government decision or in taking Government action in regard to administering or monitoring grants or subsidies.

(4) DoD personnel classified at GS-13 or above under section 5332 of title 5, United States Code, or at a comparable pay level under another authority, or members of the military in the rank of Lieutenant Colonel, Commander or above whose basic duties and responsibilities require the incumbent to exercise judgment in making a Government decision or in taking Government action in regard to:

(1) Contracting or procurement. For the purpose of this section "contracting or procurement" is defined as executing or approving the award of contracts.

(ii) Auditing. Auditing private or other non-Federal enterprise including the supervision of auditors engaged in audit activities or the participating in the development of policies and procedures for performing such audits, including the authorization and monitoring of grants to institutions or other non-Federal enterprise.

(iii) Other. Activities in which the final decision or action has a significant economic impact on the interests of any non-Federal enterprise.

(b) Review of positions. Each DoD component shall review its positions in paragraph (a) (3) and (4) of this section, both military and civilian, and include in each military and civilian position description, or similar documents description, or similar documents describing the duties and responsibilities of the position, a statement as to whether the incumbent of the position must file a statement of employment and financial interests as required by this section. This determination will be reviewed at least annually. The review may be accomplished at the time performance, efficiency or effectiveness ratings are given; or incident to other currently prescribed annual reviews. Incumbents of positions identified as involving any of the functions described in paragraph (a) (3) and (4) of this section shall be required to comply with the filing requirements of this section. Any individual who believes that his position has been improperly included in either paragraph (a) (3) or

(4) of this section may request a review of the decision requiring him to file a statement through the established grievance or complaint procedures of the department or agency.

(c) Positions in the above categories may be excluded when it is determined by the secretary of the military department concerned or head of the DoD agency concerned, or the designee of either, that the duties 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 of the incumbent and the remote and inconsequential effect on the integrity of the Government.

(d) The statements of employment and financial interests shall be submitted on DD forms furnished by the DoD agency concerned. DD Form 1555,2 "Confidential Statement of Employment and Financial Interests-DoD Personnel." is for use by all DoD personnel except special Government employees. DD Form 1555-1, "Confidential Statement of Employment and Financial Interests," is for use by special Government employees.

(e) Manner of submission-Statements of employment:

(1) The Secretary of Defense, as the head of the agency, is required to submit his statement of employment and financial interest to the Chairman of the Civil Service Commission under the provisions of section 401(a) of Executive Order 11222.

(2) All civilian Presidential appointees of the Department of Defense shall submit statements of employment and financial interest to the General Counsel of the Department of Defense.

(3) Officers or employees of the Office of the Secretary of Defense shall submit statements of employment and financial interest to the General Counsel of the Department of Defense.

(4) Officers and employees of the military departments or Defense agencies shall submit statements of employment and financial interest to officials of the military departments or Defense agencies to be designated by the Secretaries

33 Filed as part of original document; copies available at respective military department publications counters.

of the military departments or the heads of Defense agencies in the regulations of those departments and agencies.

(5) Statements of employment and financial interest shall be submitted by each officer or employee required by this part to file such a statement, not later than June 30, 1966, and periodically thereafter as prescribed in paragraph (i) of this section. Employees who enter Government service after the effective date of this part, who are required to file a statement of employment and financial interest, shall file such statements within 30 days from the date of commencement of such service.

(f) Excusable delay: If by reason of his duty assignment it is impracticable for an individual to submit a statement within the period required by this section, his immediate superior may grant an extension of time therefor. Any extension in excess of 30 days requires the concurrence of the head of the military department or Defense agency concerned, or his designee. Statements submitted pursuant to an extension of time granted hereunder shall include appropriate notation to that effect.

(g) Special Government employees— statement of employment and financial interest:

(1) For the purpose of this paragraph, "Special Government employee" has the meaning given that term by § 40.735-15.

(2) Each special Government employee who is an adviser or consultant shall, prior to appointment, file with a designated official of the military department or Defense agency where he is employed a statement (Form DD 1555—1) setting forth his Government employment, his private employment, and his financial interests. An appointee must list all of his investments and other financial interests such as a pension; retirement; group life, health, or accident insurance; and profit-sharing, stock bonus, or other employee welfare or benefit plan maintained by a former employer. He is not required to list precise amounts of investments.

(3) The following categories of special Government employees are not considered advisers or consultants within the meaning of this section when performing the specific services listed below and are not required to file the statement referred to above.

(v) Individuals of national prominence in the motion picture and television fields who are utilized as narrators or actors in motion picture or television productions produced by the DoD.

(vi) Members of selection panels for NROTC candidates.

(vii) A special Government employee who is not a "consultant" or "expert" as those terms are defined in Chapter 304 of the Federal Personnel Manual.

(h) Exceptions to specific appointees: The Secretary or the Deputy Secretary of Defense, or the Secretary of a military department may grant an exception to a specific appointee from completing that part of the statement relating to his investments and other financial interests referred to in paragraph (g) of this section upon the making of a determination that this information is not relevant in the light of the duties the appointee is to perform.

statements.

(i) Supplementary Changes in or additions to the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement as of June 30 each year. Even though no changes or additions occur a negative report is required. Notwithstanding the filing of the annual report, DoD personnel shall at all times avoid acquiring a financial interest that could result, or taking action that would result, in a violation of the conflict-of-interest provisions of 18 U.S. Code 208 or this part.

(j) Interests of employees' relatives: The interest of a spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee. For the purpose of this paragraph, "member of an employee's immediate household” means those blood relations who are residents of the employee's household.

(k) Information not known by employees: If any information required to be included on a statement of employ

ment 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.

(1) Information not required to be submitted: An employee is not required to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee's connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar 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 an employee's statement of employment and financial interests.

(m) Confidentiality of employees' statements. An agency shall hold each statement of employment and financial interests, and each supplementary statement, in confidence. An agency may not disclose information from a statement except as the agency head or the Civil Service Commission may determine for good cause. Persons designated to review the statements are responsible for maintaining the statements in confidence and shall not allow access to, or allow information to be disclosed from the statement except to carry out the purpose of this part.

(n) Effect of employees' statements 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 requirement imposed by law, 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, order, or regulation.

[31 F.R. 4989, Mar. 6, 1966, as amended at 32 F.R. 12179, Aug. 24, 1967]