his specific designee), or the Assistant Secretary of Defense (Administration) for all other DoD Components.

(c) Felony investigations: The following requirements must be met:

(1) One of the parties has freely and voluntarily consented in advance to the interception; and,

(2) The interception has been approved in advance by the Secretary of the Military Department concerned (or his specific designee), or the Assistant Secretary of Defense (Administration) for all other DoD Components.

(d) Investigations involving on-base telephone: The following requirements must be met:

(1) The subscriber-user of the telephone has requested the investigation of telephone calls involving obscenity, harassment, extortion, bribery, or threat of bodily harm and, in writing, freely and voluntarily consents in advance to the wiretap; and,

(2) The telephone and wiretap are located on an installation under the jurisdiction of the Department of Defense; and

(3) The head of the investigative unit has approved the interception in advance in accordance with the rules prescribed by the Head of the DoD Component concerned.

(e) The prohibitions and restrictions of this § 42.4 apply whether or not the information which may be acquired through interception is intended to be used in any way or to be subsequently divulged outside the Department of Defense. Any question as to whether the use of a particular device can be said to involve a prohibited interception of a telephone conversation shall be submitted to the General Counsel of the Department of Defense for consideration.

(f) A request for approval under paragraphs (b) and (c) of this section shall include the information outlined in § 42.7.

(1) Approval will not be granted for more than 30 days, and the wiretap will be terminated as soon as the desired information is obtained.

(2) Renewal requests for specified periods of not more than 30 days may be submitted to the appropriate approval authority for consideration.

(3) If the approval of the Attorney General is required, the request shall be sent to the Assistant Secretary of De

(a) To protect the rights of privacy, eavesdropping is prohibited if the listening to or recording of a conversation involves a violation of the Constitution or a statute. This prohibition includes eavesdropping in any form which is accomplished by means of physical trespass or entry. It also may include eavesdropping practices which intrude upon the conversations between persons whose relationship is traditionally considered privileged (such as lawyer-client and doctor-patient). Further, even though it may be accomplished without physical trespass or entry, it may also be unlawful if it invades the sanctity of a man's home, private office, hotel room, automobile, or other physical areas deserving protection of the right of privacy.

(b) In order to limit eavesdropping not otherwise prohibited by paragraph (a) of this section, eavesdropping is authorized without the consent of all the parties only under the following conditions:

(1) There are reasonable grounds to believe that a criminal offense concerning the national security is involved, or that a felony has been or is about to be committed; and,

approval has

(2) Advance written been obtained from the Attorney General, see subparagraph (3) of this paragraph. A request for approval under this paragraph must include the information outlined in § 42.7. Approval will not be granted for more than 30 days, and the eavesdrop will be terminated as soon as the desired information is obtained; and, (3) The request shall be sent to the Assistant Secretary of Defense (Administration) who, if he considers it justified, will forward it, and subsequent renewals thereof for not more than 30 days, to the Attorney General.

(c) If, in the judgment of the Head of the DoD Component concerned, or his specific designee, the emergency needs of an investigation preclude obtaining the advance approval of the Attorney General as required by paragraph (b) (2) of this section, he may, without that approval authorize the eavesdropping required by the investigation. He

shall, within 24 hours after authorizing the eavesdropping, provide the Attorney General with a copy to the Assistant Secretary of Defense (Administration), with the information outlined in § 42.7. He shall include an explanation of the circumstances upon which he based his judgment that the emergency needs of the investigation precluded the obtaining of the advance approval of the Attorney General.

§ 42.6 Procedures and reports.

(a) The Head of each DoD Component concerned shall require, under the administrative controls provided by this part, the following:

(1) That when wiretapping or eavesdropping is authorized, the investigative agent shall:

(i) If technically feasible, permanently record the conversations concerned on tape or other recording medium;

(ii) Preserve the recording, together with any logs, transcripts, summaries, or memoranda that are made concerning the conversations; and,

(iii) Report in writing to the Head of the DoD Component describing the uses made of each device for wiretapping or eavesdropping.

(2) As to information obtained by wiretapping or eavesdropping, that:

(i) Information is stored in an appropriate investigative file at a central location;

(ii) Information so stored is always identified, when used for any purpose, as information obtained by wiretapping or eavesdropping;

(iii) Access to information so stored is strictly controlled and recorded; and, (iv) Information so stored shall not be disclosed outside the Department of Defense unless the Head of the DoD Component concerned determines that disclosure is essential to governmental operations.

(3) As to records and devices used for wiretapping and eavesdropping; that: (i) Devices are obtained only to the extent necessary for use in conformance with this part;

(ii) Units be designated to maintain and control devices;

(iii) Centralized records be maintained of the inventory and use of devices. (A record must include the date a device was assigned to an agent, the date he

returned it, and his report under paragraph (a) (1) (iii) of this section, on its use);

(iv) The need for devices be reevaluated once a year; and

(v) All records are maintained for a period of 6 years.

(b) The Head of each DoD Component shall report to the Assistant Secretary of Defense (Administration) as follows:

(1) Before the 10th day of each month stating whether there was any wiretapping or eavesdropping during the preceding month by personnel of the DoD Component concerned (i) in the United States or (ii) elsewhere, if any party to the conversation was a citizen of the United States. The report must include all information in § 42.8.

(2) Before July 10, annually, giving a complete inventory of all devices in the DoD Component concerned that are primarily designed for wiretapping or eavesdropping. The report shall include a statement that the inventory is being maintained at the lowest level that is consistent with operational requirements.

(c) The Assistant Secretary of Defense (Administration) shall report by July 31, annually, to the Attorney General on all uses of devices for wiretapping and eavesdropping in the Department of Defense during the previous fiscal year, to include, in each case, the information in § 42.8. The report shall contain the Department of Defense inventory of devices.

§ 42.7 Information to be included in a request for approval of proposed wiretapping or eavesdropping.

(a) Indicate whether the request is for a wiretap or an eavesdrop.

(b) The purpose. To the extent possible, describe the conversation expected to be intercepted.

(c) Identity of all persons under investigation, or affected.

(d) Statement if any party has consented, and if so, his identity.

(e) With respect to the particular operation:

(1) Identity of the operating unit;

(2) Types of equipment to be used, if any, to include method of transmission and recording device;

(3) Manner or method of installation; (4) Physical location, to include the address, telephone number, room number, whether inside or outside a building,

ices, and commodities on military installations by dealers, tradesmen, and their agents, to safeguard and promote the welfare and interests of military personnel as consumers, and to set forth the conditions under which DoD may extend assistance in the collection of debts, wherever incurred, from members of the armed forces.

§ 43.2 Applicability and scope.

(a) This part is applicable to all components of the Department of Defense, to those desiring the privilege of conducting commercial transactions with military personnel on military installations (including controlled housing areas), and to those who seek assistance in the processing of debt complaints against military personnel, particularly those in which consumer credit has been extended.

(b) For additional provisions governing on-base solicitation for certain specialized types of commercial enterprises see the following DoD directives:

(1) Life insurance companies and their agents-DoD Directive 1344.1, “Solicitation of Life Insurance on Military Installations,” March 3, 1964 (Part 276 of this chapter).

(2) Automobile insurance companies and their agents-DoD Directive 1344.6, "Motor Vehicle Liability Insurance," April 15, 1964 (Part 278 of this chapter).

(3) Credit unions-DoD Directive 1000.9, “Credit Unions Serving DoD Personnel," August 27, 1965 (Part 230 of this chapter), and DoD Directive 1000.10, "Credit Unions Serving DoD Personnel on Overseas U.S. Military Installations,” March 3, 1966.

(4) Commercial facilities authorized by the Army, Navy, Air Force, or Marine Corps Exchanges-DoD Directive 1330.9, "Armed Services Exchange Regulations,” January 6, 1956.

As used herein, credit unions refer to those authorized by Part 230 of this chapter, and DoD Directive 1000.10, "Credit Unions Serving DoD Personnel on Overseas U.S. Military Installations," March 3, 1966.

(c) The provisions of this part relating to processing of debt complaints involving consumer credit transactions do not apply to companies furnishing utility services, milk, laundry, and related delivery services in which credit

is extended solely to facilitate the service, as distinguished from inducing the purchase of the product of service. For additional exceptions see § 43.10(e).

§ 43.3 Commercial activities conducted on military installations.

(a) The solicitation and transaction of commercial business on military installations with members of the armed forces may be permitted at the discretion of the military commander, provided such solicitations and transactions conform to applicable regulations and do not otherwise interfere with essential military activities. No person has authority to enter upon and transact commercial business as a matter of right.

(b) Because of his broad responsibilities to maintain discipline, protect property, and safeguard the health, morale, and welfare of his personnel, the installation commander may impose reasonable restrictions on the character and conduct of commercial activities. Of special concern is the need to assure that members of the armed forces are not subject to fraudulent, usurious, or unethical business practices, and that reasonable and consistent standards are applied to each company and its agents in conducting commercial transactions on the installation. The word "company" as used herein, includes any commercial organization, company, group, or other type of legal entity.

(c) Those seeking to transact personal commercial transactions on military installations in the United States, its territories and the Commonwealth of Puerto Rico will be required, upon demand, to present to the installation commander or his designee documentary evidence that the company and its agents meet the licensing requirements of the state in which the installation is located, and that they also meet any other applicable regulatory requirements imposed by civil authorities (Federal, State, county, or municipality). For ease of administration, the installation commander may issue temporary permits to agents who meet these requirements and who frequently conduct commercial activities on the military installations. Permanent installation passes will not be issued for this purpose.

(d) Those seeking to transact personal commercial transactions in foreign countries will be required to observe the

applicable laws of the Host Country and upon demand to present documentary evidence to the installation commander or his designee that the company and its agents meet the licensing requirements of the Host Country. If the company and its agents also conduct business in the United States, they must also present upon demand, documentary evidence that they meet the licensing requirements of the State in which they conduct their principal business.

(e) Armed Services Exchange facilities will be approved as authorized by DoD Directive 1330.9, "Armed Services Exchange Regulations," January 6, 1956. No other exclusive franchise or concession will be awarded for on-base solicitation and sale of goods, services, and commodities to military personnel without the approval of the Assistant Secretary of Defense (Manpower). All existing exclusive franchises or concessions of this nature will be referred to the ASD(M) for review. This limitation will not apply to service and supply contracts related to base operations.

§ 43.4 Supervision of on-base commercial activities.

(a) The solicitation of military personnel and their dependents will be conducted on an individual basis, preferably by appointment, in such locations, and at such hours as the military commander may designate.

(b) A conspicuous notice of installation regulations will be posted in such form and such place as to give notice thereof to all those conducting on-base commercial activities. In so far as practicable as determined by the military commander, those conducting on-base commercial activities will be presented with a copy of the applicable installation regulations and advised that disregard of the regulations will result in the withdrawal of solicitation privileges.

(c) The following solicitation practices are prohibited:

(1) Solicitation of recruits, trainees, "mass" or "captive" audiences, and transient personnel.

(2) Solicitation in areas utilized for processing or housing transient personnel; solicitation in barracks occupied as quarters; or the making of appointments with or soliciting military persons in an "on-duty" status.

(3) The use of official identification cards by retired or reserve members of the armed forces to gain access to military installations for the purpose of soliciting.

(4) Procuring, or attempting to procure, or supplying roster listings of DoD personnel for solicitation purposes.

(5) The offering of unfair, improper, and deceptive inducements to purchase or deal.

(6) Practices involving rebates to facilitate transactions or to eliminate competition. (Credit union interest refunds to borrowers are not considered a prohibited rebate.)

(7) The use of any manipulative, deceptive, or fraudulent device, scheme or artifice, including misleading advertising and sales literature.

(8) Any oral or written representations which suggests or give rise to the appearance that the DoD sponsors or endorses the company, its agents, or the goods, services, and commodities it sells. § 43.5 Denial and revocation of onbase solicitation.

(a) In furtherance of a commander's responsibilities, he shall deny or revoke permission to a company and its agents to conduct commercial activities on the military base if such action would further the best interests of the command. The grounds for taking this action shall include, but not be limited to, the following:

(1) Failure to meet the licensing and other regulatory requirements prescribed by § 43.3 (c) or (d).

(2) Commission of any of the solicitation practices prohibited by § 43.4(c).

(3) Substantiated adverse complaints or reports regarding the quality of the goods, services, or commodities solicited, the manner in which they are offered for sale, and the method and terms of financing.

(4) Personal misconduct by a company's agents or representatives while on the military installation.

(5) The possession of or any attempts to obtain allotment forms.

(b) The decision as to whether the denial or revocation action shall be limited to the agent, or whether it shall also be extended to the company he represents, shall be dependent upon the circumstances of the particular case, in

cluding among others, the nature of the violations, their frequency, the extent to which other agents of the company have engaged in such practices, and any other matters tending to show the company's culpability.

(c) Upon denying or revoking solicitation privileges the agent and the company he represents will be promptly notified of the reasons, orally or in writing. If the grounds for the action bear significantly on the eligibility of the agent and the company to hold a State license or to meet other regulatory requirements, the appropriate authorities will be notified. If the grounds for the action are such that the denial or revocation action should be extended to additional military installations, the installation commander will make his recommendations to the military department concerned after affording the company the opportunity to show cause why it should not be so extended. If so approved, and when appropriate, the order may be extended to the other military departments by the Assistant Secretary of Defense (Manpower), following consultation with the military departments concerned. § 43.6

Educational programs and advertising policies.

(a) The military departments shall maintain information and education programs for the purpose of providing members of the armed forces with information pertaining to the conduct of their personal commercial affairs (consumer credit and financing, insurance, government benefits, savings, and budgeting). The services of commercial agents, including loan or finance companies and their associations may not be used for this purpose. The services of representatives of credit unions, including associations of credit unions, may be used for this purpose provided their programs are entirely educational in nature. Educational materials prepared by outside organizations expert in this field may be adapted or used provided such material is entirely educational in nature and does not contain or refer to any particular commercial product, service, or company. In addition, such experts in the field of personal commercial affairs may provide expert advice to those conducting such educational programs, but