PART 2635—STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE EXECUTIVE BRANCH Authority: 5 U.S.C. 7301, 7351, 7353; 5 U.S.C. ch. 131; E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306. Source: 57 FR 35042, Aug. 7, 1992, unless otherwise noted. Subpart A—General Provisions Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.101 Basic obligation of public service. (a) Public service is a public trust. (b) General principles. (1) Public service is a public trust, requiring employees to place loyalty to the Constitution, the laws, and ethical principles above private gain. (2) Employees shall not hold financial interests that conflict with the conscientious performance of duty. (3) Employees shall not engage in financial transactions using nonpublic Government information or allow the improper use of such information to further any private interest. (4) An employee shall not, except as permitted by subpart B of this part, solicit or accept any gift or other item of monetary value from any person or entity seeking official action from, doing business with, or conducting activities regulated by the employee's agency, or whose interests may be substantially affected by the performance or nonperformance of the employee's duties. (5) Employees shall put forth honest effort in the performance of their duties. (6) Employees shall not knowingly make unauthorized commitments or promises of any kind purporting to bind the Government. (7) Employees shall not use public office for private gain. (8) Employees shall act impartially and not give preferential treatment to any private organization or individual. (9) Employees shall protect and conserve Federal property and shall not use it for other than authorized activities. (10) Employees shall not engage in outside employment or activities, including seeking or negotiating for employment, that conflict with official Government duties and responsibilities. (11) Employees shall disclose waste, fraud, abuse, and corruption to appropriate authorities. (12) Employees shall satisfy in good faith their obligations as citizens, including all just financial obligations, especially those—such as Federal, State, or local taxes—that are imposed by law. (13) Employees shall adhere to all laws and regulations that provide equal opportunity for all Americans regardless of, for example, race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age, genetic information, or disability. (14) Employees shall endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards set forth in this part. Whether particular circumstances create an appearance that the law or these standards have been violated shall be determined from the perspective of a reasonable person with knowledge of the relevant facts. (c) Related statutes. § 2635.102 Definitions. The definitions listed in this section are used throughout this part. Additional definitions appear in the subparts or sections of subparts to which they apply. For purposes of this part: (a) Agency (b) Agency designee (c) Agency ethics official (d) Agency programs or operations (e) Corrective action (f) Designated agency ethics official (g) Disciplinary action (h) Employee et seq. (i) Head of an agency (j) Person (k) Special Government employee (l) Supplemental agency regulation § 2635.103 Applicability to enlisted members of the uniformed services. The provisions of this part are not applicable to enlisted members of the uniformed services. However, each agency with jurisdiction over enlisted members of the uniformed services may issue regulations defining the ethical conduct obligations of enlisted members under its jurisdiction. Such regulations or policies, if issued, should be consistent with Executive Order 12674, April 12, 1989, as modified, and may prescribe the full range of statutory and regulatory sanctions, including those available under the Uniform Code of Military Justice, for failure to comply with such regulations. § 2635.104 Applicability to employees on detail. (a) Details to other agencies. (b) Details to the legislative or judicial branch. (c) Details to non-Federal entities. (d) Applicability of special agency statutes. § 2635.105 Supplemental agency regulations. In addition to the regulations set forth in this part, employees must comply with any supplemental agency regulations issued by their employing agencies under this section. (a) An agency that wishes to supplement this part must prepare and submit to the Office of Government Ethics, for its concurrence and joint issuance, any agency regulations that supplement the regulations contained in this part. Supplemental agency regulations which the agency determines are necessary and appropriate, in view of its programs and operations, to fulfill the purposes of this part must be: (1) In the form of a supplement to the regulations in this part; and (2) In addition to the substantive provisions of this part. (b) After concurrence and co-signature by the Office of Government Ethics, the agency must submit its supplemental agency regulations to the Federal Register Federal Register (c) This section applies to any supplemental agency regulations or amendments thereof issued under this part. It does not apply to: (1) A handbook or other issuance intended merely as an explanation of the standards contained in this part or in supplemental agency regulations; (2) An instruction or other issuance the purpose of which is to: (i) Delegate to an agency designee authority to make any determination, give any approval or take any other action required or permitted by this part or by supplemental agency regulations; or (ii) Establish internal agency procedures for documenting or processing any determination, approval or other action required or permitted by this part or by supplemental agency regulations, or for retaining any such documentation; or (3) Regulations or instructions that an agency has authority, independent of this part, to issue, such as regulations implementing an agency's gift acceptance statute, protecting categories of nonpublic information, or establishing standards for use of Government vehicles. (d) Employees of a State or local government or other organization who are serving on detail to an agency, pursuant to 5 U.S.C. 3371, et seq., § 2635.106 Disciplinary and corrective action. (a) Except as provided in § 2635.107, a violation of this part or of supplemental agency regulations may be cause for appropriate corrective or disciplinary action to be taken under applicable Governmentwide regulations or agency procedures. Such action may be in addition to any action or penalty prescribed by law. (b) It is the responsibility of the employing agency to initiate appropriate disciplinary or corrective action in individual cases. However, corrective action may be ordered or disciplinary action recommended by the Director of the Office of Government Ethics under the procedures at part 2638 of this chapter. (c) A violation of this part or of supplemental agency regulations, as such, does not create any right or benefit, substantive or procedural, enforceable at law by any person against the United States, its agencies, its officers or employees, or any other person. Thus, for example, an individual who alleges that an employee has failed to adhere to laws and regulations that provide equal opportunity regardless of race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age, genetic information, or disability is required to follow applicable statutory and regulatory procedures, including those of the Equal Employment Opportunity Commission. § 2635.107 Ethics advice. (a) As required by § 2638.104(a) and (d) of this chapter, each agency has a designated agency ethics official and an alternate designated agency ethics official; these are the employees who have the primary responsibility for directing the daily activities of an agency's ethics program. Acting directly or through other officials, the designated agency ethics official is responsible for providing ethics advice and counseling regarding the application of this part. (b) Employees who have questions about the application of this part or any supplemental agency regulations to particular situations should seek advice from an agency ethics official. Disciplinary action for violating this part or any supplemental agency regulations will not be taken against an employee who has engaged in conduct in good faith reliance upon the advice of an agency ethics official, provided that the employee, in seeking such advice, has made full disclosure of all relevant circumstances. When the employee's conduct violates a criminal statute, reliance on the advice of an agency ethics official cannot ensure that the employee will not be prosecuted under that statute. However, good faith reliance on the advice of an agency ethics official is a factor that may be taken into account by the Department of Justice in the selection of cases for prosecution. Disclosures made by an employee to an agency ethics official are not protected by an attorney-client privilege. Agency ethics officials are required by 28 U.S.C. 535 to report any information they receive relating to a violation of the criminal code, title 18 of the United States Code. Subpart B—Gifts From Outside Sources Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.201 Overview and considerations for declining otherwise permissible gifts. (a) Overview. gift (b) Considerations for declining otherwise permissible gifts. (2) Employees who are considering whether acceptance of a gift would lead a reasonable person with knowledge of the relevant facts to question their integrity or impartiality may consider, among other relevant factors, whether: (i) The gift has a high market value; (ii) The timing of the gift creates the appearance that the donor is seeking to influence an official action; (iii) The gift was provided by a person who has interests that may be substantially affected by the performance or nonperformance of the employee's official duties; and (iv) Acceptance of the gift would provide the donor with significantly disproportionate access. (3) Notwithstanding paragraph (b)(1) of this section, an employee who accepts a gift that qualifies for an exception under § 2635.204 does not violate this subpart or the Principles of Ethical Conduct set forth in § 2635.101(b). (4) Employees who have questions regarding this subpart, including whether the employee should decline a gift that would otherwise be permitted under an exception found in § 2635.204, should seek advice from an agency ethics official. Example 1 to paragraph (b): § 2635.202 General prohibition on solicitation or acceptance of gifts. (a) Prohibition on soliciting gifts. (1) Solicit a gift from a prohibited source; or (2) Solicit a gift to be given because of the employee's official position. (b) Prohibition on accepting gifts. (1) Accept a gift from a prohibited source; or (2) Accept a gift given because of the employee's official position. (c) Relationship to illegal gratuities statute. Example 1 to paragraph (c): § 2635.203 Definitions. For purposes of this subpart, the following definitions apply: (a) Agency (b) Gift (1) Modest items of food and non-alcoholic refreshments, such as soft drinks, coffee, and donuts, offered other than as part of a meal; (2) Greeting cards and items with little intrinsic value, such as plaques, certificates, and trophies, which are intended primarily for presentation; Example 1 to paragraph (b)(2): Example 2 to paragraph (b)(2): Example 3 to paragraph (b)(2): (3) Loans from banks and other financial institutions on terms generally available to the public; (4) Opportunities and benefits, including favorable rates, commercial discounts, and free attendance or participation available to the public or to a class consisting of all Government employees or all uniformed military personnel, whether or not restricted on the basis of geographic considerations; (5) Rewards and prizes given to competitors in contests or events, including random drawings, open to the public unless the employee's entry into the contest or event is required as part of the employee's official duties; Example 1 to paragraph (b)(5): Example 2 to paragraph (b)(5): (6) Pension and other benefits resulting from continued participation in an employee welfare and benefits plan maintained by a current or former employer; (7) Anything which is paid for by the Government or secured by the Government under Government contract; Example 1 to paragraph (b)(7): (8) Free attendance to an event provided by the sponsor of the event to: (i) An employee who is assigned to present information on behalf of the agency at the event on any day when the employee is presenting; (ii) An employee whose presence on any day of the event is deemed to be essential by the agency to the presenting employee's participation in the event, provided that the employee is accompanying the presenting employee; and (iii) One guest of the presenting employee on any day when the employee is presenting, provided that others in attendance will generally be accompanied by a guest, the offer of free attendance for the guest is unsolicited, and the agency designee, orally or in writing, has authorized the presenting employee to accept; Example 1 to paragraph (b)(8): Example 2 to paragraph (b)(8): Example 3 to paragraph (b)(8): (9) Any gift accepted by the Government under specific statutory authority, including: (i) Travel, subsistence, and related expenses accepted by an agency under the authority of 31 U.S.C. 1353 in connection with an employee's attendance at a meeting or similar function relating to the employee's official duties which take place away from the employee's duty station, provided that the agency's acceptance is in accordance with the implementing regulations at 41 CFR chapter 304; and (ii) Other gifts provided in-kind which have been accepted by an agency under its agency gift acceptance statute; and (10) Anything for which market value is paid by the employee. (c) Market value Example 1 to paragraph (c): Example 2 to paragraph (c): Example 3 to paragraph (c): Example 4 to paragraph (c): Example 5 to paragraph (c): (d) Prohibited source (1) Is seeking official action by the employee's agency; (2) Does business or seeks to do business with the employee's agency; (3) Conducts activities regulated by the employee's agency; (4) Has interests that may be substantially affected by the performance or nonperformance of the employee's official duties; or (5) Is an organization a majority of whose members are described in paragraphs (d)(1) through (4) of this section. (e) A gift is given because of the employee's official position Note 1 to paragraph ( e Gifts between employees are subject to the limitations set forth in subpart C of this part. Example 1 to paragraph (e): Example 2 to paragraph (e): prohibited source (f) A gift which is solicited or accepted indirectly (1) Given with the employee's knowledge and acquiescence to the employee's parent, sibling, spouse, child, dependent relative, or a member of the employee's household because of that person's relationship to the employee; or (2) Given to any other person, including any charitable organization, on the basis of designation, recommendation, or other specification by the employee, except the employee has not indirectly solicited or accepted a gift by the raising of funds or other support for a charitable organization if done in accordance with § 2635.808. Example 1 to paragraph (f)(2): (g) Free attendance (h) Legal expense fund (i) Pro bono legal services § 2635.204 Exceptions to the prohibition for acceptance of certain gifts. Subject to the limitations in § 2635.205, this section establishes exceptions to the prohibitions set forth in § 2635.202(a) and (b). Even though acceptance of a gift may be permitted by one of the exceptions contained in this section, it is never inappropriate and frequently prudent for an employee to decline a gift if acceptance would cause a reasonable person to question the employee's integrity or impartiality. Section 2635.201(b) identifies considerations for declining otherwise permissible gifts. (a) Gifts of $20 or less. Example 1 to paragraph ( a An employee of the Securities and Exchange Commission and their spouse have been invited by a representative of a regulated entity to a community theater production, tickets to which have a face value of $30 each. The aggregate market value of the gifts offered on this single occasion is $60, $40 more than the $20 amount that may be accepted for a single event or presentation. The employee may not accept the gift of the evening of entertainment. The couple may attend the play only if the employee pays the full $60 value of the two tickets. Example 2 to paragraph ( a An employee of the National Geospatial-Intelligence Agency has been invited by an association of cartographers to speak about the agency's role in the evolution of missile technology. At the conclusion of the speech, the association presents the employee a framed map with a market value of $18 and a ceramic mug that has a market value of $15. The employee may accept the map or the mug, but not both, because the aggregate value of these two tangible items exceeds $20. Example 3 to paragraph ( a On four occasions during the calendar year, an employee of the Defense Logistics Agency (DLA) was given gifts worth $10 each by four employees of a corporation that is a DLA contractor. For purposes of applying the yearly $50 limitation on gifts of $20 or less from any one person, the four gifts must be aggregated because a person is defined at § 2635.102(k) to mean not only the corporate entity, but its officers and employees as well. However, for purposes of applying the $50 aggregate limitation, the employee would not have to include the value of a birthday present received from a cousin, who is employed by the same corporation, if the cousin's birthday present can be accepted under the exception at paragraph (b) of this section for gifts based on a personal relationship. Example 4 to paragraph ( a Under the authority of 31 U.S.C. 1353 for agencies to accept payments from non-Federal sources in connection with attendance at certain meetings or similar functions, the Environmental Protection Agency (EPA) has accepted an association's gift of travel expenses and conference fees for an employee to attend a conference on the long-term effect of radon exposure. While at the conference, the employee may accept a gift basket of $20 or less from one of the companies underwriting the event even though it was not approved in advance by the EPA. Although 31 U.S.C. 1353 is the authority under which the EPA accepted the gift to the agency of travel expenses and conference fees, the gift basket is a gift to the employee rather than to the EPA. Example 5 to paragraph ( a During off-duty time, an employee of the Department of Defense (DoD) attends a trade show involving companies that are DoD contractors. The employee is offered software worth $15 at X Company's booth, a calendar worth $12 at Y Company's booth, and a deli lunch worth $8 from Z Company. The employee may accept all three of these items because they do not exceed $20 per source, even though they total more than $20 at this single occasion. Example 6 to paragraph ( a An employee of the Department of Defense (DoD) is being promoted to a higher level position in another DoD office. Six individuals, each employed by a different defense contractor, who have worked with the DoD employee over the years, decide to act in concert to pool their resources to buy the employee a nicer gift than each could buy separately. Each defense contractor employee contributes $20 to buy a desk clock for the DoD employee that has a market value of $120. Although each of the contributions does not exceed the $20 limit, the employee may not accept the $120 gift because it is a single gift that has a market value in excess of $20. Example 7 to paragraph ( a During a holiday party, an employee of the Department of State is given a $15 store gift card to a national coffee chain by an agency contractor. The employee may accept the card as the market value is less than $20. The employee could not, however, accept a gift card that is issued by a credit card company or other financial institution, because such a card is equivalent to a gift of cash. (b) Gifts based on a personal relationship. Example 1 to paragraph ( b An employee of the Federal Deposit Insurance Corporation (FDIC) has been dating an accountant employed by a member bank. As part of its “Work-Life Balance” program, the bank has given each employee in the accountant's division two tickets to a professional basketball game and has urged each to invite a family member or friend to share the evening of entertainment. Under the circumstances, the FDIC employee may accept the invitation to attend the game. Even though the tickets were initially purchased by the member bank, they were given without reservation to the accountant to use as desired, and the invitation to the employee was motivated by their personal friendship. Example 2 to paragraph ( b Three partners in a law firm that handles corporate mergers have invited an employee of the Federal Trade Commission (FTC) to join them in a golf tournament at a private club at the firm's expense. The entry fee is $500 per foursome. The employee cannot accept the gift of one-quarter of the entry fee even though the employee has developed an amicable relationship with the three partners as a result of the firm's dealings with the FTC. As evidenced in part by the fact that the fees are to be paid by the firm, it is not a personal friendship but a business relationship that is the motivation behind the partners' gift. Example 3 to paragraph ( b A Peace Corps employee enjoys using a social media site on the internet in a personal capacity outside of work. The employee has used the site to keep in touch with friends, neighbors, coworkers, professional contacts, and other individuals they have met over the years through both work and personal activities. One of these individuals works for a contractor that provides language services to the Peace Corps. The employee was acting in an official capacity when they met the individual at a meeting to discuss a matter related to the contract between their respective employers. Thereafter, the two communicated occasionally regarding contract matters, and later also granted one another access to join their social media networks through their respective social media accounts. However, the pair did not communicate further in their personal capacities, carry on extensive personal interactions, or meet socially outside of work. One day, the individual, whose employer continues to serve as a Peace Corps contractor, contacts the employee to offer a pair of concert tickets worth $30 apiece. Although the employee and the individual are connected through social media, the circumstances do not demonstrate that the gift was clearly motivated by a personal relationship, rather than the position of the employee, and therefore the employee may not accept the gift pursuant to paragraph (b) of this section. (c) Discounts and similar benefits. gift (1) A reduction or waiver of the fees for membership or other fees for participation in organization activities offered to all Government employees or all uniformed military personnel by professional organizations if the only restrictions on membership relate to professional qualifications; and (2) Opportunities and benefits, including favorable rates, commercial discounts, and free attendance or participation not precluded by paragraph (c)(3) of this section: (i) Offered to members of a group or class in which membership is unrelated to Government employment; (ii) Offered to members of an organization, such as an employees' association or agency credit union, in which membership is related to Government employment if the same offer is broadly available to large segments of the public through organizations of similar size; (iii) Offered by a person who is not a prohibited source to any group or class that is not defined in a manner that specifically discriminates among Government employees on the basis of type of official responsibility or on a basis that favors those of higher rank or rate of pay; or (iv) Offered to employees by an established employee organization, such as an association composed of Federal employees or a nonprofit employee welfare organization, because of the employees' Government employment, so long as the employee is part of the class of individuals eligible for assistance from the employee organization as set forth in the organization's governing documents. Example 1 to paragraph ( c A computer company offers a discount on the purchase of computer equipment to all public and private sector computer procurement officials who work in organizations with over 300 employees. An employee who works as the computer procurement official for a Government agency could not accept the discount to purchase the personal computer under the exception in paragraph (c)(2)(i) of this section. The employee's membership in the group to which the discount is offered is related to Government employment because membership is based on the employee's status as a procurement official with the Government. Example 2 to paragraph ( c An employee of the Consumer Product Safety Commission (CPSC) may accept a discount of $50 on a microwave oven offered by the manufacturer to all members of the CPSC employees' association. Even though the CPSC is currently conducting studies on the safety of microwave ovens, the $50 discount is a standard offer that the manufacturer has made broadly available through a number of employee associations and similar organizations to large segments of the public. Example 3 to paragraph ( c An Assistant Secretary may not accept a local country club's offer of membership to all members of Department Secretariats which includes a waiver of its $5,000 membership initiation fee. Even though the country club is not a prohibited source, the offer discriminates in favor of higher-ranking officials. Example 4 to paragraph ( c A nonprofit military relief society provides access to financial counseling services, loans, and grants to all sailors and Marines. A service member may accept financial benefits from the relief society, including to cover legal expenses, because the benefits are offered by an employee organization that was established before the legal matter arose, and because the benefits are being offered because of the employees' Government employment, as set forth in the relief society's governing documents. (3) An employee may not accept for personal use any benefit to which the Government is entitled as the result of an expenditure of Government funds, unless authorized by statute or regulation ( e.g., Example 1 to paragraph ( c The administrative officer for a field office of U.S. Immigration and Customs Enforcement (ICE) has signed an order to purchase 50 boxes of photocopy paper from a supplier whose literature advertises that it will give a free briefcase to anyone who purchases 50 or more boxes. Because the paper was purchased with ICE funds, the administrative officer cannot keep the briefcase which, if claimed and received, is Government property. (d) Awards and honorary degrees Awards. (i) The award and any item incident to the award are not from a person who has interests that may be substantially affected by the performance or nonperformance of the employee's official duties, or from an association or other organization if a majority of its members have such interests; and (ii) If the award or any item incident to the award is in the form of cash or an investment interest, or if the aggregate value of the award and any item incident to the award, other than free attendance to the event provided to the employee and to members of the employee's family by the sponsor of the event, exceeds $200, the agency ethics official has made a written determination that the award is made as part of an established program of recognition. Example 1 to paragraph ( d Based on a written determination by an agency ethics official that the prize meets the criteria set forth in paragraph (d)(2) of this section, an employee of the National Institutes of Health (NIH) may accept the Nobel Prize for Medicine, including the cash award which accompanies the prize, even though the prize was conferred on the basis of laboratory work performed at NIH. Example 2 to paragraph ( d A defense contractor, ABC Systems, has an annual award program for the outstanding public employee of the year. The award includes a cash payment of $1,000. The award program is wholly funded to ensure its continuation on a regular basis for the next twenty years and selection of award recipients is made pursuant to written standards. An employee of the Department of the Air Force, who has duties that include overseeing contract performance by ABC Systems, is selected to receive the award. The employee may not accept the cash award because ABC Systems has interests that may be substantially affected by the performance or nonperformance of the employee's official duties. Example 3 to paragraph ( d An ambassador selected by a nonprofit organization as a recipient of its annual award for distinguished service in the interest of world peace may, together with their spouse and children, attend the awards ceremony dinner and accept a crystal bowl worth $200 presented during the ceremony. However, if the organization has also offered airline tickets for the ambassador and the family to travel to the city where the awards ceremony is to be held, the aggregate value of the tickets and the crystal bowl exceeds $200, and the ambassador may accept only upon a written determination by the agency ethics official that the award is made as part of an established program of recognition. (2) Established program of recognition. (i) Awards have been made on a regular basis or, if the program is new, there is a reasonable basis for concluding that awards will be made on a regular basis based on funding or funding commitments; and (ii) Selection of award recipients is made pursuant to written standards. (3) Honorary degrees. Note 1 to paragraph ( d When the honorary degree is offered by a foreign institution of higher education, the agency may need to make a separate determination as to whether the institution of higher education is a foreign government for purposes of the Emoluments Clause of the U.S. Constitution (U.S. Const., art. I, sec. 9, cl. 8), which forbids employees from accepting emoluments, presents, offices, or titles from foreign governments, without the consent of Congress. The Foreign Gifts and Decorations Act, 5 U.S.C. 7342, however, may permit the acceptance of honorary degrees in some circumstances. Example 1 to paragraph ( d A well-known university located in the United States wishes to give an honorary degree to the Secretary of Labor. The Secretary may accept the honorary degree only if an agency ethics official determines in writing that the timing of the award of the degree would not cause a reasonable person to question the Secretary's impartiality in a matter affecting the university. (4) Presentation events. (e) Gifts based on outside business or employment relationships. (1) Resulting from the business or employment activities of an employee's spouse when it is clear that such benefits have not been offered or enhanced because of the employee's official position; Example 1 to paragraph ( e A Department of Agriculture employee whose spouse is a computer programmer employed by a Department of Agriculture contractor may attend the company's annual retreat for all of its employees and their families held at a resort facility. However, under § 2635.502, the employee may need to recuse from performing official duties affecting the spouse's employer. Example 2 to paragraph ( e When the spouses of other clerical personnel have not been invited, an employee of the Defense Contract Audit Agency whose spouse is a clerical worker at a defense contractor may not attend the contractor's annual retreat in Hawaii for corporate officers and members of the board of directors, even though the spouse received a special invitation from the company for them to attend as a couple. (2) Resulting from the employee's outside business or employment activities when it is clear that such benefits are based on the outside business or employment activities and have not been offered or enhanced because of the employee's official status; Example 1 to paragraph ( e The members of an Army Corps of Engineers environmental advisory committee that meets six times per year are special Government employees. A member who has a consulting business may accept an invitation to a $50 dinner from a corporate client, an Army construction contractor, unless, for example, the invitation was extended in order to discuss the activities of the advisory committee. (3) Customarily provided by a prospective employer in connection with bona fide employment discussions. If the prospective employer has interests that could be affected by performance or nonperformance of the employee's duties, acceptance is permitted only if the employee first has complied with the recusal requirements of subpart F of this part applicable when seeking employment; or Example 1 to paragraph ( e An employee of the Federal Communications Commission with responsibility for drafting regulations affecting all cable television companies wishes to apply for a job opening with a cable television holding company. Once the employee has properly recused from further work on the regulations as required by subpart F of this part, the employee may enter into employment discussions with the company and may accept the company's offer to pay for airfare, hotel, and meals in connection with an interview trip. (4) Provided by a former employer to attend a reception or similar event when other former employees have been invited to attend, the invitation and benefits are based on the former employment relationship, and it is clear that such benefits have not been offered or enhanced because of the employee's official position. Example 1 to paragraph ( e An employee of the Department of the Army is invited by a former employer, an Army contractor, to attend its annual holiday dinner party. The former employer traditionally invites both its current and former employees to the holiday dinner regardless of their current employment activities. Under these circumstances, the employee may attend the dinner because the dinner invitation is a result of the employee's former outside employment activities, other former employees have been asked to attend, and the gift is not offered because of the employee's official position. (5) For purposes of paragraphs (e)(1) through (4) of this section, employment (f) Gifts in connection with political activities permitted by the Hatch Act Reform Amendments. Example 1 to paragraph ( f The Secretary of the Department of Health and Human Services may accept an airline ticket and hotel accommodations furnished by the campaign committee of a candidate for the United States Senate in order to give a speech in support of the candidate. (g) Gifts of free attendance at widely attended gatherings Authorization. (2) Widely attended gatherings. (i) A large number of persons will attend; (ii) Persons with a diversity of views or interests will be present, for example, if it is open to members from throughout the interested industry or profession or if those in attendance represent a range of persons interested in a given matter; and (iii) There will be an opportunity to exchange ideas and views among invited persons. (3) Written authorization by the agency designee. (i) The event is a widely attended gathering, as set forth in paragraph (g)(2) of this section; (ii) The employee's attendance at the event is in the agency's interest because it will further agency programs or operations; (iii) The agency's interest in the employee's attendance outweighs the concern that the employee may be, or may appear to be, improperly influenced in the performance of official duties; and (iv) If a person other than the sponsor of the event invites or designates the employee as the recipient of the gift of free attendance and bears the cost of that gift, the event is expected to be attended by more than 100 persons, and the value of the gift of free attendance does not exceed $480. (4) Determination of agency interest. (i) The importance of the event to the agency; (ii) The nature and sensitivity of any pending matter affecting the interests of the person who extended the invitation and the significance of the employee's role in any such matter; (iii) The purpose of the event; (iv) The identity of other expected participants; (v) Whether acceptance would reasonably create the appearance that the donor is receiving preferential treatment; (vi) Whether the Government is also providing persons with views or interests that differ from those of the donor with access to the Government; and (vii) The market value of the gift of free attendance. (5) Cost provided by person other than the sponsor of the event. (6) Accompanying guest. Example 1 to paragraph ( g An aerospace industry association that is a prohibited source sponsors an industry-wide, two-day seminar for which it charges a fee of $800 and anticipates attendance of approximately 400. An Air Force contractor pays $4,000 to the association so that the association can extend free invitations to five Air Force officials designated by the contractor. The Air Force officials may not accept the gifts of free attendance because the contractor, rather than the association, provided the cost of their attendance; the contractor designated the specific employees to receive the gift of free attendance; and the value of the gift exceeds $480 per employee. Example 2 to paragraph ( g An aerospace industry association that is a prohibited source sponsors an industry-wide, two-day seminar for which it charges a fee of $25 and anticipates attendance of approximately 50. An Air Force contractor pays $125 to the association so that the association can extend free invitations to five Air Force officials designated by the contractor. The Air Force officials may not accept the gifts of free attendance because the contractor, rather than the association, provided the cost of their attendance; the contractor designated the specific employees to receive the gift of free attendance; and the event was not expected to be attended by more than 100 persons. Example 3 to paragraph ( g An aerospace industry association that is a prohibited source sponsors an industry-wide, two-day seminar for which it charges a fee of $800 and anticipates attendance of approximately 400. An Air Force contractor pays $4,000 in order that the association might invite any five Federal employees. An Air Force official to whom the sponsoring association, rather than the contractor, extended one of the five invitations could attend if the employee's participation were determined to be in the interest of the agency and the employee received a written authorization. Example 4 to paragraph ( g An employee of the Department of Transportation is invited by a news organization to an annual press dinner sponsored by an association of press organizations. Tickets for the event cost $480 per person and attendance is limited to 400 representatives of press organizations and their guests. If the employee's attendance is determined to be in the interest of the agency and the agency designee provides a written authorization, the employee may accept the invitation from the news organization because more than 100 persons will attend and the cost of the ticket does not exceed $480. However, if the invitation were extended to the employee and an accompanying guest, the employee's guest could not be authorized to attend for free because the market value of the gift of free attendance would exceed $480. Example 5 to paragraph ( g An employee of the Department of Energy (DOE) and their spouse have been invited by a major utility executive to a small dinner party. A few other officials of the utility and their spouses or other guests are also invited, as is a representative of a consumer group concerned with utility rates and their spouse. The DOE official believes the dinner party will provide an opportunity to socialize with and get to know those in attendance. The employee may not accept the free invitation under this exception, even if attendance could be determined to be in the interest of the agency. The small dinner party is not a widely attended gathering. Nor could the employee be authorized to accept even if the event were instead a corporate banquet to which forty company officials and their spouses or other guests were invited. In this second case, notwithstanding the larger number of persons expected (as opposed to the small dinner party just noted) and despite the presence of the consumer group representative and spouse who are not officials of the utility, those in attendance would still not represent a diversity of views or interests. Thus, the company banquet would not qualify as a widely attended gathering under those circumstances either. Example 6 to paragraph ( g An Assistant U.S. Attorney is invited to attend a luncheon meeting of a local bar association to hear a distinguished judge lecture on cross-examining expert witnesses. Although members of the bar association are assessed a $15 fee for the meeting, the Assistant U.S. Attorney may accept the bar association's offer to attend for free, even without a determination of agency interest. The gift can be accepted under the $20 gift exception at paragraph (a) of this section. Example 7 to paragraph ( g An employee of the Department of the Interior authorized to speak on the first day of a four-day conference on endangered species may accept the sponsor's waiver of the conference fee for the first day of the conference under § 2635.203(b)(8). If the conference is widely attended, the employee may be authorized to accept the sponsor's offer to waive the attendance fee for the remainder of the conference if the agency designee has made a written determination that attendance is in the agency's interest. Example 8 to paragraph ( g A military officer has been approved to attend a widely attended gathering, pursuant to paragraph (g) of this section, that will be held in the same city as the officer's duty station. The defense contractor sponsoring the event has offered to transport the officer in a limousine to the event. The officer may not accept the offer of transportation because the definition of free attendance (h) Social invitations. (1) The invitation is unsolicited and is from a person who is not a prohibited source; (2) No fee is charged to any person in attendance; and (3) If either the sponsor of the event or the person extending the invitation to the employee is not an individual, the agency designee has made a written determination after finding that the employee's attendance would not cause a reasonable person with knowledge of the relevant facts to question the employee's integrity or impartiality, consistent with § 2635.201(b). Example 1 to paragraph ( h An employee of the White House Press Office has been invited to a social dinner for current and former White House Press Officers at the home of an individual who is not a prohibited source. The employee may attend even if the invitation is because of the employee's official position. (i) Meals, refreshments, and entertainment in foreign areas. (1) The market value in the foreign area of the food, refreshments, or entertainment provided at the meeting or event, as converted to U.S. dollars, does not exceed the per diem rate for the foreign area specified in the U.S. Department of State's Maximum Rates of Per Diem Allowances for Travel in Foreign Areas, Per Diem Supplement, section 925 to the Standardized Regulations (GC-FA), available at www.state.gov; (2) There is participation in the meeting or event by non-U.S. citizens or by representatives of foreign governments or other foreign entities; (3) Attendance at the meeting or event is part of the employee's official duties to obtain information, disseminate information, promote the export of U.S. goods and services, represent the United States, or otherwise further programs or operations of the agency or the U.S. mission in the foreign area; and (4) The gift of meals, refreshments, or entertainment is from a person other than a foreign government as defined in 5 U.S.C. 7342(a)(2). Example 1 to paragraph ( i A number of local business owners in a developing country are eager for a U.S. company to locate a manufacturing facility in their province. An official of the U.S. International Development Finance Corporation may accompany the visiting vice president of the U.S. company to a dinner meeting hosted by the business owners at a province restaurant when the market value of the food and refreshments does not exceed the per diem rate for that country. (j) Gifts to the President or Vice President. (k) Gifts authorized by supplemental agency regulation. (l) Gifts accepted under specific statutory authority. (1) Free attendance, course or meeting materials, transportation, lodgings, food and refreshments, or reimbursements therefor incident to training or meetings when accepted by the employee under the authority of 5 U.S.C. 4111. The employee's acceptance must be approved by the agency in accordance with part 410 of this title; or (2) Gifts from a foreign government or international or multinational organization, or its representative, when accepted by the employee under the authority of the Foreign Gifts and Decorations Act, 5 U.S.C. 7342. As a condition of acceptance, an employee must comply with requirements imposed by the agency's regulations or procedures implementing that Act. (m) Gifts of informational materials. (i) The aggregate market value of all informational materials received from any one person does not exceed $100 in a calendar year; or (ii) If the aggregate market value of all informational materials from the same person exceeds $100 in a calendar year, an agency designee has made a written determination after finding that acceptance by the employee would not be inconsistent with the standard set forth in § 2635.201(b). (2) Informational materials (i) Are educational or instructive in nature; (ii) Are not primarily created for entertainment, display, or decoration; and (iii) Contain information that relates in whole or in part to the following categories: (A) The employee's official duties or position, profession, or field of study; (B) A general subject matter area, industry, or economic sector affected by or involved in the programs or operations of the agency; or (C) Another topic of interest to the agency or its mission. Example 1 to paragraph ( m An analyst at the Agricultural Research Service receives an edition of an agricultural research journal in the mail from a consortium of private farming operations concerned with soil toxicity. The journal edition has a market value of $75. The analyst may accept the gift. Example 2 to paragraph ( m An inspector at the Mine Safety and Health Administration receives a popular novel with a market value of $25 from a mine operator. Because the novel is primarily for entertainment purposes, the inspector may not accept the gift. Example 3 to paragraph ( m An employee at the Department of the Army is offered an encyclopedia on cyberwarfare from a prohibited source. The cost of the encyclopedia is far in excess of $100. The agency designee determines that acceptance of the gift would be inconsistent with the standard set out in § 2635.201(b). The employee may not accept the gift under paragraph (m) of this section. (n) Legal expense funds and pro bono legal services. (1) Payments for legal expenses paid out of a legal expense fund that is established and operated in accordance with subpart J of this part; and (2) Pro bono § 2635.205 Limitations on use of exceptions. Notwithstanding any exception provided in this subpart, other than § 2635.204(j), an employee may not: (a) Accept a gift in return for being influenced in the performance of an official act; (b) Use, or permit the use of, the employee's Government position, or any authority associated with public office, to solicit or coerce the offering of a gift; (c) Accept gifts from the same or different sources on a basis so frequent that a reasonable person would be led to believe the employee is using the employee's public office for private gain; Example 1 to paragraph (c): (d) Accept a gift in violation of any statute; relevant statutes applicable to all employees include, but are not limited to: (1) 18 U.S.C. 201(b), which prohibits public officials from, directly or indirectly, corruptly demanding, seeking, receiving, accepting, or agreeing to receive or accept anything of value personally or for any other person or entity in return for being influenced in the performance of an official act; being influenced to commit or aid in committing, or to collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States; or for being induced to do or omit to do any action in violation of their official duties. As used in 18 U.S.C. 201(b), the term “public official” is broadly construed and includes regular and special Government employees as well as all other Government officials; and (2) 18 U.S.C. 209, which prohibits employees, other than special Government employees, from receiving any salary or any contribution to or supplementation of salary from any source other than the United States as compensation for services as a Government employee. The statute contains several specific exceptions to this general prohibition, including an exception for contributions made from the treasury of a State, county, or municipality; (e) Accept a gift in violation of any Executive order; or (f) Accept any gift when acceptance of the gift is specifically prohibited by a supplemental agency regulation issued with the concurrence of the Office of Government Ethics, pursuant to § 2635.105. § 2635.206 Proper disposition of prohibited gifts. (a) Unless a gift is accepted by an agency acting under specific statutory authority, an employee who has received a gift that cannot be accepted under this subpart must dispose of the gift in accordance with the procedures set forth in this section. The employee must promptly complete the authorized disposition of the gift. The obligation to dispose of a gift that cannot be accepted under this subpart is independent of an agency's decision regarding corrective or disciplinary action under § 2635.106. (1) Gifts of tangible items. Example 1 to paragraph ( a A Department of Commerce employee received a $25 T-shirt from a prohibited source after providing training at a conference. Because the gift would not be permissible under an exception to this subpart, the employee must either return or destroy the T-shirt or promptly reimburse the donor $25. Destruction may be carried out by physical destruction or by permanently discarding the T-shirt by placing it in the trash. Example 2 to paragraph ( a To avoid public embarrassment to the seminar sponsor, an employee of the National Park Service did not decline a barometer worth $200 given at the conclusion of a speech on Federal lands policy. To comply with this section, the employee must either promptly return the barometer or pay the donor the market value of the gift. Alternatively, the National Park Service may choose to accept the gift if permitted under specific statutory gift acceptance authority. The employee may not destroy this gift, as the market value is in excess of $100. (2) Gifts of perishable items. Example 1 to paragraph ( a With approval by the recipient's supervisor, a floral arrangement sent by a disability claimant to a helpful employee of the Social Security Administration may be placed in the office's reception area. (3) Gifts of intangibles. Example 1 to paragraph ( a A Department of Defense employee wishes to attend a charitable event for which they were offered a $300 ticket by a prohibited source. Although attendance is not in the interest of the agency under § 2635.204(g), the employee may attend if they reimburse the donor the $300 face value of the ticket. (4) Gifts from foreign governments or international organizations. (b) An agency may authorize disposition or return of gifts at Government expense. Employees may use penalty mail to forward reimbursements required or permitted by this section. (c) Employees who, on their own initiative, promptly comply with the requirements of this section will not be deemed to have improperly accepted an unsolicited gift. Employees who promptly consult their agency ethics official to determine whether acceptance of an unsolicited gift is proper and who, upon the advice of the ethics official, return the gift or otherwise dispose of the gift in accordance with this section, will be considered to have complied with the requirements of this section on the employee's own initiative. (d) Employees are encouraged to record any actions they have taken to properly dispose of gifts that cannot be accepted under this subpart, such as by sending an electronic mail message to the appropriate agency ethics official or the employee's supervisor. Subpart C—Gifts Between Employees Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.301 Overview. This subpart contains standards that prohibit an employee from giving or contributing to a gift to an official superior, and official superiors are prohibited from knowingly accepting such a gift. Employees also are prohibited from soliciting a contribution from another employee for a gift to an official superior. In addition, employees are prohibited from accepting a gift from an employee who receives less pay. The prohibitions in this subpart apply unless the item is excluded from the definition of a gift § 2635.302 General standards. (a) Gifts to superiors. (1) Directly or indirectly, give a gift to or make a contribution toward a gift for an official superior, and an official superior may not knowingly accept such a gift; or (2) Solicit a contribution from another employee for a gift to either their own or the other employee's official superior. (b) Gifts from employees receiving less pay. (1) There is a personal relationship between the two employees that would justify the gift and the employee receiving the gift is not the official superior of the employee giving the gift; or (2) The employee giving the gift is the official superior of the employee receiving the gift. Example 1 to paragraph (b): (c) Limitation on use of exceptions. § 2635.303 Definitions. For purposes of this subpart, the following definitions apply: (a) Gift (b) Indirectly, (1) Given with the employee's knowledge and acquiescence by the employee's parent, sibling, spouse, child, or dependent relative; or (2) Given by a person other than the employee when circumstances indicate that the employee has promised or agreed to reimburse that person or to give that person something of value in exchange for giving the gift. (c) Market value (d) Official superior (e) Solicit (f) Voluntary contribution Example 1 to paragraph (f): § 2635.304 Exceptions. The prohibitions set forth in § 2635.302(a) and (b) do not apply to a gift given or accepted under the circumstances described in paragraph (a) or (b) of this section. A contribution or the solicitation of a contribution that would otherwise violate the prohibitions set forth in § 2635.302(a) and (b) may only be made in accordance with paragraph (c) of this section. (a) General exceptions. (1) Items, other than cash, with an aggregate market value of $10 or less per occasion; (2) Items such as food and refreshments to be shared in the office among several employees; (3) Personal hospitality provided at a residence which is of a type and value customarily provided by the employee to personal friends; (4) Items given in connection with the receipt of personal hospitality if of a type and value customarily given on such occasions; and (5) Unless obtained in violation of § 630.912 of this title, leave transferred under subpart I of part 630 of this title to an employee who is not an immediate supervisor. Example 1 to paragraph (a): Example 2 to paragraph (a): Example 3 to paragraph (a): Example 4 to paragraph (a): (b) Special, infrequent occasions. (1) In recognition of infrequently occurring occasions of personal significance such as marriage, illness, bereavement, or the birth or adoption of a child; or (2) Upon occasions that terminate a subordinate-official superior relationship, such as retirement, resignation, or transfer. Example 1 to paragraph (b): Example 2 to paragraph (b): Example 3 to paragraph (b): Example 4 to paragraph (b): (c) Voluntary contributions. (i) On a special, infrequent occasion as described in paragraph (b) of this section; or (ii) On an occasional basis, for items such as food and refreshments to be shared in the office among several employees. (2) An employee may accept such gifts to which a subordinate or an employee receiving less pay has voluntarily contributed pursuant to paragraph (c)(1) of this section. Example 1 to paragraph (c): Example 2 to paragraph (c): Example 3 to paragraph (c): Example 4 to paragraph (c): Example 5 to paragraph (c): § 2635.305 Disposition of prohibited gifts. Section 2635.206(a)(1) through (3) may be referenced when determining an appropriate disposition of a gift that may not be accepted under this subpart. Subpart D—Conflicting Financial Interests Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.401 Overview. Part 2640 of this chapter interprets and is the implementing regulation for 18 U.S.C. 208. This subpart summarizes the relevant statutory restrictions and some of the regulatory guidance found there. Specifically, this subpart contains two provisions relating to financial interests. One is a recusal requirement and the other is a prohibition on acquiring or continuing to hold specific financial interests. An employee may acquire or hold any financial interest not prohibited by § 2635.403. Notwithstanding that the acquisition or holding of a particular interest is proper, an employee is prohibited in accordance with § 2635.402 from participating in an official capacity in any particular matter in which, to the employee's knowledge, the employee or any person whose interests are imputed to the employee has a financial interest, if the particular matter will have a direct and predictable effect on that interest. § 2635.402 Disqualifying financial interests. (a) Statutory prohibition. Note 1 to paragraph ( a Standards applicable when seeking non-Federal employment are contained in subpart F of this part and, if followed, will ensure that an employee does not violate 18 U.S.C. 208(a) or this section when the employee is negotiating for or has an arrangement concerning future employment. In all other cases when the employee's participation would violate 18 U.S.C. 208(a), an employee must recuse from participating in the particular matter in accordance with paragraph (c) of this section or obtain a waiver or determine that an exemption applies, as described in paragraph (d) of this section. (b) Definitions. (1) Direct and predictable effect. (ii) A particular matter will have a predictable effect if there is a real, as opposed to a speculative possibility that the matter will affect the financial interest. It is not necessary, however, that the magnitude of the gain or loss be known, and the dollar amount of the gain or loss is immaterial. Note 2 to paragraph ( b If a particular matter involves a specific party or parties, generally the matter will at most only have a direct and predictable effect, for purposes of this subpart, on a financial interest of the employee in or with a party, such as the employee's interest by virtue of owning stock. There may, however, be some situations in which, under the standards of this paragraph (b)(1), a particular matter will have a direct and predictable effect on an employee's financial interests in or with a nonparty. For example, if a party is a corporation, a particular matter may also have a direct and predictable effect on an employee's financial interests through ownership of stock in an affiliate, parent, or subsidiary of that party. Similarly, the disposition of a protest against the award of a contract to a particular company may also have a direct and predictable effect on an employee's financial interest in another company listed as a subcontractor in the proposal of one of the competing offerors. Example 1 to paragraph ( b An employee of the National Library of Medicine at the National Institutes of Health has just been asked to serve on the technical evaluation panel to review proposals for a new library computer search system. DEF Computer Corporation, a closely held company in which the employee and their spouse own a majority of the stock, has submitted a proposal. Because award of the systems contract to DEF or to any other offeror will have a direct and predictable effect on the financial interests of both the employee and the spouse, the employee cannot participate on the technical evaluation team unless this disqualification has been waived. Example 2 to paragraph ( b Upon assignment to the technical evaluation panel, the employee in example 1 to this paragraph (b)(1) finds that DEF Computer Corporation has not submitted a proposal. Rather, LMN Corp., with which DEF competes for private sector business, is one of the six offerors. The employee need not recuse from serving on the technical evaluation panel. Any effect on the employee's financial interests as a result of the agency's decision to award or not award the systems contract to LMN would be at most indirect and speculative. (2) Imputed interests. (i) The employee's spouse; (ii) The employee's minor child; (iii) The employee's general partner; (iv) An organization or entity which the employee serves as officer, director, trustee, general partner, or employee; and (v) A person with whom the employee is negotiating for or has an arrangement concerning prospective employment. (Employees who are seeking other employment should refer to and comply with the standards in subpart F of this part.) Example 1 to paragraph ( b An employee of the Department of Education serves without compensation on the board of directors of Kinder World, Inc., a nonprofit corporation that engages in good works. Even though the employee's personal financial interests will not be affected, the employee must recuse from participating in the review of a grant application submitted by Kinder World. Award or denial of the grant will affect the financial interests of Kinder World and its financial interests are imputed to the employee as a member of its board of directors. Example 2 to paragraph ( b The spouse of an employee of the Food and Drug Administration has obtained a position with a well-established biomedical research company. The company has developed an artificial limb for which it is seeking FDA approval and the employee would ordinarily be asked to participate in the FDA's review and approval process. The spouse is a salaried employee of the company and has no stock or other direct or indirect ownership interest in the company. The spouse's position with the company is such that the granting or withholding of FDA approval will not have a direct and predictable effect on their salary or continued employment with the company. Because the FDA approval process will not affect the spouse's financial interests, this section does not require the employee to recuse from participating in that process. Nevertheless, because the impartiality principle is implicated as a result of the employee's covered relationship with the spouse's employer, as identified at § 2635.502(b)(1)(iii), the employee must follow the procedures established in § 2635.502 before participating in the FDA's review and approval process. (3) Particular matter. Example 1 to paragraph ( b The Internal Revenue Service's amendment of its regulations to change the manner in which depreciation is calculated is not a particular matter, nor is the Social Security Administration's consideration of changes to its appeal procedures for disability claimants. Example 2 to paragraph ( b Consideration by the Surface Transportation Board of regulations establishing safety standards for trucks on interstate highways involves a particular matter. (4) Personal and substantial. (c) Recusal. (1) Notification. (2) Documentation. Example 1 to paragraph ( c An Assistant Secretary of the Department of the Interior owns recreational property that borders on land which is being considered for annexation to a national park. Annexation would directly and predictably increase the value of the Assistant Secretary's vacation property and, thus, the Assistant Secretary must recuse from participating in any way in the Department's deliberations or decisions regarding the annexation. Because the Assistant Secretary is responsible for determining their own work assignments, they may accomplish their recusal merely by ensuring that they do not participate in the particular matter. Because of the level of their position, however, the Assistant Secretary might be wise to establish a record that they have acted properly by providing a written recusal statement to an official superior and by providing written notification of the recusal to subordinates to ensure that they do not raise or discuss any issues related to the annexation with the Assistant Secretary. (d) Waiver of or exemptions from recusal requirement. (1) Regulatory exemptions. (2) Individual waivers. (i) The employee: (A) Advises the Government official responsible for the employee's appointment (or other Government official to whom authority to issue such a waiver for the employee has been delegated) about the nature and circumstances of the particular matter or matters; and (B) Makes full disclosure to such official of the nature and extent of the relevant financial interest; and (ii) Such official determines, in writing, that the employee's financial interest in the particular matter or matters is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from such employee. See part 2640, subpart C of this chapter (providing additional guidance). (3) Federal advisory committee member waivers. (i) Reviews the financial disclosure report filed by the special Government employee pursuant to 5 U.S.C. chapter 131; and (ii) Certifies in writing that the need for the individual's services outweighs the potential for a conflict of interest created by the relevant financial interest. See part 2640, subpart C, of this chapter (providing additional guidance). (4) Consultation and notification regarding waivers. (e) Divestiture of a disqualifying financial interest. (1) Voluntary divestiture. (2) Directed divestiture. (3) Eligibility for special tax treatment. (f) Official duties that give rise to potential conflicts. § 2635.403 Prohibited financial interests. An employee may not acquire or hold any financial interest that agency employees are prohibited from acquiring or holding by statute, by agency regulation issued in accordance with paragraph (a) of this section, or by reason of an agency determination of substantial conflict under paragraph (b) of this section. (a) Agency regulation prohibiting certain financial interests. Note 1 to paragraph ( a There is no statute of Governmentwide applicability prohibiting employees from holding or acquiring any financial interest. Statutory restrictions, if any, are contained in agency statutes which, in some cases, may be implemented by agency regulations issued independent of this part. (b) Agency determination of substantial conflict. (1) Require the employee to recuse from particular matters so central or critical to the performance of the employee's official duties that their ability to perform the duties of their position would be materially impaired; or (2) Adversely affect the efficient accomplishment of the agency's mission because another employee cannot be readily assigned to perform work from which the employee would be recused by reason of the financial interest. Example 1 to paragraph (b): (c) Definition of financial interest. (1) Except as provided in paragraph (c)(2) of this section, the term financial interest is limited to financial interests that are owned by the employee or by the employee's spouse or minor children. However, the term is not limited to only those financial interests that would require the employee to recuse under 18 U.S.C. 208(a) and § 2635.402. The term includes any current or contingent ownership, equity, or security interest in real or personal property or a business, and may include an indebtedness or compensated employment relationship. It thus includes, for example, interests in the nature of stocks, bonds, partnership interests, fee and leasehold interests, mineral and other property rights, deeds of trust, and liens, and extends to any right to purchase or acquire any such interest, such as a stock option or commodity future. It does not include a future interest created by someone other than the employee, the employee's spouse, or minor child, or any right as a beneficiary of an estate that has not been settled. Example 1 to paragraph (c)(1): Example 2 to paragraph (c)(1): (2) The term financial interest includes service, with or without compensation, as an officer, director, trustee, general partner, or employee of any person, including a nonprofit entity, whose financial interests are imputed to the employee under § 2635.402(b)(2)(iii) or (iv). Example 1 to paragraph (c)(2): (d) Reasonable period to divest or terminate. (e) Eligibility for special tax treatment. Subpart E—Impartiality in Performing Official Duties Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.501 Overview. (a) Scope. (1) The provisions of § 2635.502 are designed to help employees identify and take appropriate steps regarding their participation in particular matters involving specific parties that may cause a reasonable person with knowledge of the relevant facts to question their impartiality. Employees and agencies should analyze such appearance issues, and employees may receive authorization to participate in such matters, using the procedures in this subpart. (2) Under § 2635.503, an employee who has received a covered payment from a former employer is subject, in the absence of a waiver pursuant to § 2635.503(c), to a two-year period of recusal from participating in particular matters in which that former employer is or represents a party. (3) An employee is prohibited by 18 U.S.C. 208(a) from participating personally and substantially in an official capacity in any particular matter in which, to the employee's knowledge, the employee has a personal or imputed financial interest, if the particular matter will have a direct and predictable effect on that interest. Section 208(a), its interpreting and implementing regulations under part 2640 of this chapter, and the regulations at subparts D and F of this part, apply when the particular matter would affect the financial interests of one of these persons. (b) Distinction between authorizations under this subpart and waivers and exemptions under the criminal conflict of interest law. (2) When the employee's participation in a particular matter would affect any one of the financial interests described in 18 U.S.C. 208(a), only a statutory waiver or exemption, as described in §§ 2635.402(d) and 2635.605(a), will enable the employee to participate in that matter. The specific requirements for regulatory exemptions and statutory waivers are contained in part 2640, subparts B and C, of this chapter. (3) An applicable waiver or exemption under part 2640 of this chapter also authorizes an employee's participation in particular matters that would otherwise be restricted by § 2635.502. Specifically, if an employee meets all prerequisites for the application of one of the regulatory exemptions set forth in part 2640, subpart B, of this chapter, that constitutes a determination that the interest of the Government in the employee's participation in a particular matter outweighs the concern that a reasonable person may question the integrity of agency programs and operations. Similarly, if the employee complies with all terms of a statutory waiver granted pursuant to part 2640, subpart C, of this chapter, that also constitutes a determination that the interest of the Government in the employee's participation in a particular matter outweighs the concern that a reasonable person may question the integrity of agency programs and operations. In such cases, the employee is not required to recuse under § 2635.502(e) or request authorization to participate under § 2635.502(d). Note 1 to § 2635.501: Even if the employee or agency designee determines that this subpart is not applicable, the employee's supervisor or other individuals responsible for assigning work to the employee may decide not to assign certain work to the employee for other reasons, including to address appearance and impartiality concerns not covered by this subpart. § 2635.502 Personal and business relationships. (a) Consideration of appearances by the employee. (1) When an employee knows that a particular matter involving specific parties is likely to have a direct and predictable effect on the financial interest of a member of the employee's household, and the employee determines that the circumstances would cause a reasonable person with knowledge of the relevant facts to question the employee's impartiality in the matter, the employee should not participate in the matter unless the employee has received a determination from the agency designee regarding the appearance problem in accordance with paragraph (c) of this section or received an authorization from the agency designee in accordance with paragraph (d) of this section. (2) When an employee knows that a person with whom the employee has a covered relationship is or represents a party to a particular matter involving specific parties, and the employee determines that the circumstances would cause a reasonable person with knowledge of the relevant facts to question their impartiality in the matter, the employee should not participate in the matter unless the employee has received a determination from the agency designee regarding the appearance problem in accordance with paragraph (c) of this section or received an authorization from the agency designee in accordance with paragraph (d) of this section. (3) Employees who are concerned that circumstances other than those specifically described in paragraphs (a)(1) and (2) of this section would raise a question regarding their impartiality should use the process described in this section to determine whether they should not participate in a particular matter. (b) Definitions. (1) An employee has a covered relationship (i) A person, other than a prospective employer described in § 2635.603(c), with whom the employee has or seeks a business, contractual, or other financial relationship that involves other than a routine consumer transaction; Note 1 to paragraph ( b i An employee who is seeking employment within the meaning of § 2635.603 must comply with subpart F of this part rather than with this section. (ii) A person who is a member of the employee's household, or who is a relative with whom the employee has a close personal relationship; (iii) A person for whom the employee's spouse, parent, or child is, to the employee's knowledge, serving or seeking to serve as an officer, director, trustee, general partner, agent, attorney, consultant, contractor, or employee; (iv) Any person for whom the employee has, within the last year, served as officer, director, trustee, general partner, agent, attorney, consultant, contractor, or employee; or (v) An organization, other than a political party described in 26 U.S.C. 527(e), in which the employee is an active participant. Participation is active if, for example, it involves service as an official of the organization or in a capacity similar to that of a committee or subcommittee chairperson or spokesperson, or participation in directing the activities of the organization. In other cases, significant time devoted to promoting specific programs of the organization, including coordination of fundraising efforts, is an indication of active participation. Payment of dues or the donation or solicitation of financial support does not, in itself, constitute active participation. (2) Direct and predictable effect (3) Particular matter involving specific parties Example 1 to paragraph (b): Example 2 to paragraph (b): Example 3 paragraph (b): Example 4 to paragraph (b): Example 5 to paragraph (b): Example 6 to paragraph (b): Example 7 to paragraph (b): (c) Determination by agency designee. (2) If the agency designee determines that the employee's impartiality is likely to be questioned, the agency designee must then determine, in accordance with paragraph (d) of this section, whether the employee should be authorized to participate in the matter. If the agency designee determines that the employee's participation should not be authorized, the employee must recuse from participating in the particular matter in accordance with paragraph (e) of this section. (3) If the agency designee determines that the employee's impartiality is not likely to be questioned, the agency designee may advise the employee, including an employee who has reached a contrary conclusion under paragraph (a) of this section, that the employee's participation in the matter would be proper. (d) Authorization by agency designee. (1) Factors which may be taken into consideration include: (i) The nature of the relationship involved; (ii) The effect that resolution of the matter would have upon the financial interests of the person involved in the relationship; (iii) The nature and importance of the employee's role in the matter, including the extent to which the employee is called upon to exercise discretion in the matter; (iv) The sensitivity of the matter; (v) The difficulty of reassigning the matter to another employee; and (vi) Adjustments that may be made in the employee's duties that would reduce or eliminate the likelihood that a reasonable person would question the employee's impartiality. (2) Authorization by the agency designee will be documented in writing at the agency designee's discretion or when requested by the employee. An employee who has been authorized to participate in a particular matter involving specific parties may not thereafter recuse from participating in the matter on the basis of an appearance problem involving the same circumstances that have been considered by the agency designee. Example 1 to paragraph (d): Example 2 paragraph (d): Example 3 paragraph (d): (e) Recusal. (1) Notification. (2) Documentation. (f) Irrelevant considerations. Note 2 to § 2635.502: Nothing in this section should be construed to suggest that employees should not participate in a matter because of their political, religious, or moral views. § 2635.503 Covered payments from former employers. (a) Recusal requirement. Example 1 to paragraph (a): Example 2 paragraph (a): Example 3 to paragraph (a): (b) Definitions. (1) Covered payment (i) On the basis of a determination made after it became known to the former employer that the individual was being considered for or had accepted a Government position; and (ii) Other than pursuant to a qualifying program. (2)(i) A qualifying program (A) A compensation, partnership, or benefits program that is contained in bylaws, a contract, or other written form, and does not treat individuals entering Government service more favorably than other individuals; or (B) A program that is not contained in written form, but is demonstrated by a history of similar payments made to others not entering Government service. (ii) When a program is established in written form, any history of making similar payments to others not entering Government service that is contrary to an express provision of the written plan is not relevant to the evaluation of whether it is a qualifying program. Example 1 to paragraph (b)(2): (3) Former employer Note 1 to paragraph ( b The definition of former employer (c) Waiver of recusal. Subpart F—Seeking Other Employment Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.601 Overview. This subpart contains a recusal requirement that applies to employees when seeking non-Federal employment with persons whose financial interests would be directly and predictably affected by particular matters in which the employees participate personally and substantially. Specifically, it addresses the requirement of 18 U.S.C. 208(a) that an employee not participate personally and substantially in any particular matter that, to the employee's knowledge, will have a direct and predictable effect on the financial interests of a person with whom the employee is negotiating or has any arrangement concerning prospective employment. See § 2635.402 and § 2640.103 of this chapter. Beyond the statutory requirement in 18 U.S.C. 208(a), this subpart also addresses issues of lack of impartiality that require recusal from particular matters affecting the financial interests of a prospective employer when an employee's actions in seeking employment fall short of actual employment negotiations. In addition, this subpart contains the statutory notification requirements that apply to public filers when they negotiate for or have agreements of future employment or compensation. Specifically, it addresses the requirements of section 17 of the Representative Louise McIntosh Slaughter Stop Trading on Congressional Knowledge Act (STOCK Act), Public Law 112-105, 126 Stat. 303, that a public filer must submit a written statement identifying the entity involved in the negotiations or agreement within three business days after commencement of such negotiations or agreement and must submit a notification of recusal whenever there is a conflict of interest or an appearance of a conflict of interest. § 2635.602 Applicability and related considerations. (a) Applicability. (2) An employee who is seeking employment with a person whose financial interests are not, to the employee's knowledge, affected directly and predictably by particular matters in which the employee participates personally and substantially has no obligation to recuse under this subpart. In addition, nothing in this subpart requires an employee, other than a public filer, to notify anyone that the employee is seeking employment unless a notification is necessary to implement a recusal pursuant to § 2635.604(b). A public filer who negotiates for or has an agreement of future employment or compensation must comply with the notification requirements in § 2635.607. An employee may, however, be subject to other statutes that impose requirements on employment contacts or discussions, such as 41 U.S.C. 2103, which is applicable to agency officials involved in certain procurement matters. Employees are encouraged to consult with their ethics officials if they have any questions about how this subpart may apply to them. Ethics officials are not obligated by this subpart to inform supervisors that employees are seeking employment. Example 1 to paragraph (a): Example 2 to paragraph (a): (b) Related restrictions Outside employment while a Federal employee. (2) Post-employment restrictions. (3) Interview trips and entertainment. § 2635.603 Definitions. For purposes of this subpart: (a) Employment Example 1 to paragraph (a): Example 2 to paragraph (a): Example 3 to paragraph (a): (b) An employee is seeking employment (1) An employee has begun seeking employment if the employee has directly or indirectly: (i) Engaged in negotiations for employment with any person. For purposes of this paragraph (b)(1)(i), as for 18 U.S.C. 208(a) and section 17 of the STOCK Act, the term negotiations (ii) Made an unsolicited communication to any person, or such person's agent or intermediary, regarding possible employment with that person. However, the employee has not begun seeking employment if that communication was for the sole purpose of requesting a job application; or (iii) Made a response, other than rejection, to an unsolicited communication from any person, or such person's agent or intermediary, regarding possible employment with that person. (2) An employee is no longer seeking employment when: (i) The employee or the prospective employer rejects the possibility of employment and all discussions of possible employment have terminated; or (ii) Two months have transpired after the employee's dispatch of an unsolicited resume or employment proposal, provided the employee has received no indication of interest in employment discussions from the prospective employer. (3) For purposes of this paragraph (b), a response that defers discussions until the foreseeable future does not constitute rejection of an unsolicited employment overture, proposal, or resume nor rejection of a prospective employment possibility. Example 1 to paragraph (b): Example 2 to paragraph (b): Example 3 to paragraph (b): Example 4 to paragraph (b): Example 5 to paragraph (b): Example 6 to paragraph (b): Example 7 to paragraph (b): Example 8 to paragraph (b): Example 9 to paragraph (b): Example 10 to paragraph (b): (c) Prospective employer (1) A person who uses that agent or other intermediary for the purpose of seeking to establish an employment relationship with the employee if the agent identifies the prospective employer to the employee; and (2) A person contacted by the employee's agent or other intermediary for the purpose of seeking to establish an employment relationship if the agent identifies the prospective employer to the employee. Example 1 to paragraph (c): Example 2 to paragraph (c): (d) Direct and predictable effect, particular matter, personal and substantial (e) Public filer § 2635.604 Recusal while seeking employment. (a) Obligation to recuse. (2) The employee may participate in a particular matter under paragraph (a)(1) of this section when: (i) The employee's only communication with the prospective employer in connection with the search for employment is the submission of an unsolicited resume or other employment proposal; (ii) The prospective employer has not responded to the employee's unsolicited communication with a response indicating an interest in employment discussions; and (iii) The matter is not a particular matter involving specific parties. Example 1 to paragraph (a): Example 2 to paragraph (a): Example 3 to paragraph (a): Example 4 to paragraph (a): (b) Notification. Example 1 to paragraph (b): Example 2 to paragraph (b): (c) Documentation. Example 1 to paragraph (c): (d) Agency determination of substantial conflict. § 2635.605 Waiver or authorization permitting participation while seeking employment. (a) Waiver. Example 1 to paragraph (a): (b) Authorization by agency designee. Example 1 to paragraph (b): § 2635.606 Recusal based on an arrangement concerning prospective employment or otherwise after negotiations. (a) Employment or arrangement concerning employment. Example 1 to paragraph (a): Example 2 to paragraph (a): (b) Offer rejected or not made. Example 1 to paragraph (b): § 2635.607 Notification requirements for public financial disclosure report filers regarding negotiations for or agreement of future employment or compensation. (a) Notification regarding negotiations for or agreement of future employment or compensation. Example 1 to paragraph (a): Example 2 to paragraph (a): (b) Notification of recusal. (c) Advance filing of notification and recusal statements. Example 1 to paragraph (c): Example 2 to paragraph (c): (d) Definition of agreement of future employment or compensation. Agreement of future employment or compensation Subpart G—Misuse of Position Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.701 Overview. This subpart contains provisions relating to the proper use of official time and authority, and of information and resources to which employees have access because of their Federal employment. This subpart sets forth standards relating to: (a) Use of public office for private gain; (b) Use of nonpublic information; (c) Use of Government property; and (d) Use of official time. § 2635.702 Use of public office for private gain. An employee may not use their public office for their own private gain; for the endorsement of any product, service, or enterprise (except as otherwise permitted by this part or other applicable law or regulation); or for the private gain of friends, relatives, or persons with whom the employee is affiliated in a nongovernmental capacity, including nonprofit organizations of which the employee is an officer or member, and persons with whom the employee has or seeks employment or business relations. The specific prohibitions set forth in paragraphs (a) through (d) of this section apply this general standard, but are not intended to be exclusive or to limit the application of this section. (a) Inducement or coercion of benefits. Example 1 to paragraph (a): Example 2 to paragraph (a): (b) Appearance of governmental sanction. Example 1 to paragraph (b): Example 2 to paragraph (b): (c) Endorsements. (1) In furtherance of statutory authority to promote products, services, or enterprises; or (2) As a result of documentation of compliance with agency requirements or standards or as the result of recognition for achievement given under an agency program of recognition for accomplishment in support of the agency's mission. Example 1 to paragraph (c): Example 2 to paragraph (c): Example 3 to paragraph (c): Example 4 to paragraph (c): (d) Performance of official duties affecting a private interest. (e) Use of terms of address and ranks. § 2635.703 Use of nonpublic information. (a) Prohibition. (b) Definition of nonpublic information. nonpublic information (1) Is routinely exempt from disclosure under 5 U.S.C. 552 or otherwise protected from disclosure by statute, Executive order, or regulation; (2) Is designated as confidential by an agency; or (3) Has not actually been disseminated to the general public and is not authorized to be made available to the public on request. Example 1 to paragraph (b): Example 2 to paragraph (b): Example 3 to paragraph (b): Example 4 to paragraph (b): Example 5 to paragraph (b): § 2635.704 Use of Government property. (a) Standard. (b) Definitions. (1) Government property (2) Authorized purposes de minimis Example 1 to paragraph (b): de minimis Example 2 to paragraph (b): Example 3 to paragraph (b): § 2635.705 Use of official time. (a) Use of an employee's own time. Example 1 to paragraph (a): Example 2 to paragraph (a): (b) Use of a subordinate's time. Example 1 to paragraph (b): Subpart H—Outside Activities Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.801 Overview. (a) This subpart contains provisions relating to outside employment, outside activities, and personal financial obligations of employees that are in addition to the principles and standards set forth in other subparts of this part. Several of the provisions in this subpart apply to uncompensated as well as to compensated outside activities. (b) Employees who wish to engage in outside employment or other outside activities must comply with all relevant provisions of this subpart, including, when applicable: (1) The prohibition on outside employment or any other outside activity that conflicts with the employee's official duties; (2) Any agency-specific requirement for prior approval of outside employment or activities; (3) The limitations on receipt of outside earned income by certain Presidential appointees and other noncareer employees; (4) The limitations on paid and unpaid service as an expert witness; (5) The limitations on paid and unpaid teaching, speaking, and writing; and (6) The limitations on fundraising activities. (c) Outside employment and other outside activities of an employee must also comply with applicable provisions set forth in other subparts of this part and in supplemental agency regulations. These include the principle that an employee must endeavor to avoid actions creating an appearance of violating any of the ethical standards in this part and the prohibition against use of official position for an employee's private gain or for the private gain of any person with whom the employee has employment or business relations or is otherwise affiliated in a nongovernmental capacity. Example 1 to paragraph (c): (d) In addition to the provisions of this subpart and other subparts of this part, an employee who wishes to engage in outside employment or other outside activities must comply with applicable statutes and regulations. Relevant provisions of law, many of which are listed in subpart I of this part, may include: (1) 18 U.S.C. 201(b), which prohibits a public official from seeking, accepting or agreeing to receive or accept anything of value in return for being influenced in the performance of an official act or for being induced to take or omit to take any action in violation of official duty; (2) 18 U.S.C. 201(c), which prohibits a public official, otherwise than as provided by law for the proper discharge of official duty, from seeking, accepting, or agreeing to receive or accept anything of value for or because of any official act; (3) 18 U.S.C. 203(a), which prohibits an individual from seeking, accepting, or agreeing to receive or accept compensation for any representational services, rendered personally or by another at a time when the individual is an employee, in relation to any particular matter in which the United States is a party or has a direct and substantial interest, before any department, agency, or other specified entity. This statute contains several exceptions, as well as standards for special Government employees that limit the scope of the restriction; (4) 18 U.S.C. 205, which prohibits an employee, whether or not for compensation, from acting as agent or attorney for anyone in a claim against the United States or from acting as agent or attorney for anyone, before any department, agency, or other specified entity, in any particular matter in which the United States is a party or has a direct and substantial interest. It also prohibits receipt of any gratuity, or any share of or interest in a claim against the United States, in consideration for assisting in the prosecution of such claim. This statute contains several exceptions, as well as standards for special Government employees that limit the scope of the restrictions; (5) 18 U.S.C. 209, which prohibits an employee, other than a special Government employee, from receiving any salary or any contribution to or supplementation of salary from any source other than the United States as compensation for services as a Government employee. The statute contains several exceptions that limit its applicability; (6) The Emoluments Clause of the United States Constitution, article I, section 9, clause 8, which prohibits anyone holding an office of profit or trust under the United States from accepting any gift, office, title, or emolument, including salary or compensation, from any foreign government except as authorized by Congress. In addition, 18 U.S.C. 219 generally prohibits any public official from being or acting as an agent of a foreign principal, including a foreign government, corporation, or person, if the employee would be required to register as a foreign agent under 22 U.S.C. 611 et seq.; (7) The Hatch Act Reform Amendments, 5 U.S.C. 7321 through 7326, which govern the political activities of executive branch employees; and (8) The Ethics in Government Act of 1978 limitations on outside employment, 5 U.S.C. chapter 131, subchapter III, which restrict the amount of outside earned income that a covered noncareer employee may receive, prohibit a covered noncareer employee from receiving compensation for specified activities, and provide that a covered noncareer employee may not allow their name to be used by any firm or other entity that provides professional services involving a fiduciary relationship. Implementing regulations are contained in §§ 2636.305 through 2636.307 of this chapter. § 2635.802 Conflicting outside employment and activities. (a) Employees may not engage in outside employment or any other outside activity that conflicts with their official duties. An activity conflicts with an employee's official duties: (1) If it is prohibited by statute or by an agency supplemental regulation; or (2) If, under the standards set forth in §§ 2635.402 and 2635.502, it would require the employee's recusal from matters so central or critical to the performance of their official duties that the employee's ability to perform the duties of the Government position would be materially impaired. (b) Employees are cautioned that even though an outside activity may not be prohibited under this section, it may violate other principles or standards set forth in this part or require the employee to recuse from participating in certain particular matters under either subpart D or E of this part. Example 1 to paragraph (b): Example 2 to paragraph (b): § 2635.803 Prior approval for outside employment and activities. When required by agency supplemental regulation, employees must obtain prior approval before engaging in outside employment or activities. When it is determined to be necessary or desirable for the purpose of administering its ethics program, an agency may, by supplemental regulation, require employees or any category of employees to obtain prior approval before engaging in specific types of outside activities, including outside employment. Whether or not prior approval is required by agency supplemental regulations, employees have a continuing responsibility to ensure that their outside activities do not conflict with their official duties. § 2635.804 Outside earned income limitations applicable to certain Presidential appointees. This section implements the outside earned income limitations applicable to certain Presidential appointees. The outside earned income limitations applicable to covered noncareer employees, as defined in § 2636.303(a) of this chapter, are implemented in §§ 2636.301 through 2636.304 of this chapter. (a) Presidential appointees to full-time noncareer positions. (b) Definitions. (1) Outside earned income (2) Presidential appointee to a full-time noncareer position (i) A position filled under the authority of 3 U.S.C. 105 or 107(a) for which the rate of basic pay is less than that for GS-9, step 1 of the General Schedule; (ii) A position, within a White House operating unit, that is designated as not normally subject to change as a result of a Presidential transition; (iii) A position within the uniformed services; or (iv) A position in which a member of the Foreign Service is serving that does not require advice and consent of the Senate. Example 1 to paragraph (b)(2): Example 2 to paragraph (b)(2): § 2635.805 Service as an expert witness. (a) Restriction. (b) Additional restriction applicable to certain special Government employees. (2) The restriction in paragraph (b)(1) of this section applies to special Government employees who: (i) Are appointed by the President; (ii) Serve on a commission established by statute; or (iii) Have served or are expected to serve for more than 60 days in a period of 365 consecutive days. (c) Authorization to serve as an expert witness. (1) After consultation with the agency representing the Government in the proceeding or, if the Government is not a party, with the Department of Justice and the agency with the most direct and substantial interest in the matter, the designated agency ethics official determines that the employee's service as an expert witness is in the interest of the Government; or (2) The designated agency ethics official determines that the subject matter of the testimony does not relate to the employee's official duties within the meaning of § 2635.807(a)(2)(i). (d) Fact witness. § 2635.806 [Reserved] § 2635.807 Teaching, speaking, and writing. (a) Compensation for teaching, speaking, or writing. (1) Relationship to other limitations on receipt of compensation. (i) The requirement contained in § 2636.307 of this chapter that covered noncareer employees obtain advance authorization before engaging in teaching for compensation; and (ii) The prohibitions and limitations in § 2635.804 and in § 2636.304 of this chapter on receipt of outside earned income applicable to certain Presidential appointees and to other covered noncareer employees. (2) Definitions. (i) Teaching, speaking, or writing relates to the employee's official duties (A) The activity is undertaken as part of the employee's official duties; (B) The circumstances indicate that the invitation to engage in the activity was extended to the employee primarily because of their official position rather than their expertise on the particular subject matter; (C) The invitation to engage in the activity or the offer of compensation for the activity was extended to the employee, directly or indirectly, by a person who has interests that may be affected substantially by performance or nonperformance of the employee's official duties; (D) The information conveyed through the activity draws substantially on ideas or official data that are nonpublic information as defined in § 2635.703(b); or (E) Except as provided in paragraph (a)(2)(i)(E)( 4 ( 1 ( 2 ( 3 ( 4 2 3 1 Note 1 to paragraph ( a i Paragraph (a)(2)(i)(E) of this section does not preclude an employee, other than a covered noncareer employee, from receiving compensation for teaching, speaking, or writing on a subject within the employee's discipline or inherent area of expertise based on the employee's educational background or experience even though the teaching, speaking, or writing deals generally with a subject within the agency's areas of responsibility. Example 1 to paragraph (a)(2)(i) The Director of the Division of Enforcement at the Commodity Futures Trading Commission has a keen interest in stamp collecting and has spent years developing a personal collection as well as studying the field generally. The Director is asked by an international society of philatelists to give a series of four lectures on how to assess the value of American stamps. Because the subject does not relate to the Director's official duties, it is permissible for the Director to accept compensation for the lecture series. The Director could not, however, accept a similar invitation from a commodities broker. Example 2 to paragraph (a)(2)(i) A scientist at the National Institutes of Health (NIH), whose principal area of Government research is the molecular basis of the development of cancer, could not be compensated for writing a book which focuses specifically on the research conducted in this position at NIH, which thus relates to the scientist's official duties. However, the scientist could receive compensation for writing or editing a textbook on the treatment of all cancers, provided that the book does not focus on recent research at NIH, but rather conveys scientific knowledge gleaned from the scientific community as a whole. The book might include a chapter, among many other chapters, which discusses the molecular basis of cancer development. Additionally, the book could contain brief discussions of recent developments in cancer treatment, even though some of those developments are derived from NIH research, as long as it is available to the public. Example 3 to paragraph (a)(2)(i) On personal time, a National Highway Traffic Safety Administration (NHTSA) employee prepared a consumer's guide to purchasing a safe automobile that focuses on automobile crash worthiness statistics gathered and made public by NHTSA. The employee may not receive royalties or any other form of compensation for the guide. The guide deals in significant part with the programs or operations of NHTSA and, therefore, relates to the employee's official duties. On the other hand, the employee could receive royalties from the sale of a consumer's guide to values in used automobiles even though it contains a brief, incidental discussion of automobile safety standards developed by NHTSA. Example 4 to paragraph (a)(2)(i) An employee of the Securities and Exchange Commission (SEC) may not receive compensation for a book which focuses specifically on the regulation of the securities industry in the United States, because that subject concerns the regulatory programs or operations of the SEC. The employee may, however, write a book about the advantages of investing in various types of securities as long as the book contains only an incidental discussion of any program or operation of the SEC. Example 5 to paragraph (a)(2)(i) An employee of the Department of Commerce who works in the Department's employee relations office is an acknowledged expert in the field of Federal employee labor relations, and participates in Department negotiations with employee unions. The employee may receive compensation from a private training institute for a series of lectures which describe the decisions of the Federal Labor Relations Authority concerning unfair labor practices, provided that the lectures do not contain any significant discussion of labor relations cases handled at the Department of Commerce, or the Department's labor relations policies. Federal Labor Relations Authority decisions concerning Federal employee unfair labor practices are not a specific program or operation of the Department of Commerce and thus do not relate to the employee's official duties. However, an employee of the FLRA could not give the same presentations for compensation. Example 6 to paragraph (a)(2)(i) A program analyst employed at the Environmental Protection Agency (EPA) may receive royalties and other compensation for a book about the history of the environmental movement in the United States even though it contains brief references to the creation and responsibilities of the EPA. A covered noncareer employee of the EPA, however, could not receive compensation for writing the same book because it deals with the general subject matter area affected by EPA programs and operations. Neither employee could receive compensation for writing a book that focuses on specific EPA regulations or otherwise on its programs and operations. Example 7 to paragraph (a)(2)(i) An attorney in private practice has been given a one-year appointment as a special Government employee to serve on an advisory committee convened for the purpose of surveying and recommending modification of procurement regulations that deter small businesses from competing for Government contracts. Because service under this appointment is not expected to exceed 60 days, the attorney may accept compensation for an article about the anticompetitive effects of certain regulatory certification requirements even though those regulations are being reviewed by the advisory committee. The regulations which are the focus of the advisory committee deliberations are not a particular matter involving specific parties. Because the information is nonpublic, the attorney could not, however, accept compensation for an article which recounts advisory committee deliberations that took place in a meeting closed to the public in order to discuss proprietary information provided by a small business. Example 8 to paragraph (a)(2)(i) A biologist who is an expert in marine life is employed for more than 60 days in a year as a special Government employee by the National Science Foundation (NSF) to assist in developing a program of grants by the NSF for the study of coral reefs. The biologist may continue to receive compensation for speaking, teaching, and writing about marine life generally and coral reefs specifically. However, during the term of the appointment as a special Government employee, the biologist may not receive compensation for an article about the NSF program being developed. Only the latter would concern a matter to which the special Government employee is assigned. Example 9 to paragraph (a)(2)(i) An expert on international banking transactions has been given a one-year appointment as a special Government employee to assist in analyzing evidence in the Government's fraud prosecution of owners of a failed savings and loan association. It is anticipated that the expert will serve fewer than 60 days under that appointment. Nevertheless, during this appointment, the expert may not accept compensation for an article about the fraud prosecution, even though the article does not reveal nonpublic information. The prosecution is a particular matter that involves specific parties. (ii) Agency (iii) Compensation, (A) Includes any form of consideration, remuneration, or income, including royalties, given for or in connection with the employee's teaching, speaking, or writing. (B) Compensation ( 1 ( 2 ( 3 ( 4 (C) For employees other than covered noncareer employees as defined in § 2636.303(a) of this chapter, compensation compensation Note 2 to paragraph ( a iii Independent of paragraph (a) of this section, other authorities, including but not limited to 18 U.S.C. 209, in some circumstances may limit or entirely preclude an employee's acceptance of travel expenses. In addition, employees who file financial disclosure reports should be aware that, subject to applicable thresholds and exclusions, travel and travel reimbursements accepted from sources other than the United States Government must be reported on their financial disclosure reports. Example 1 to paragraph (a)(2)(iii) A GS-15 employee of the Forest Service has developed and marketed, in a private capacity, a speed-reading technique for which popular demand is growing. The employee is invited to speak about the technique by a representative of an organization that will be substantially affected by a regulation on land management which the employee is in the process of drafting for the Forest Service. The representative offers to pay the employee a $200 speaker's fee and to reimburse all travel expenses. The employee may accept the travel reimbursements, but not the speaker's fee. The speaking activity is related to official duties under paragraph (a)(2)(i)(C) of this section and the fee is prohibited compensation for such speech; travel expenses incurred in connection with the speaking engagement, on the other hand, are not prohibited compensation for a GS-15 employee. Example 2 to paragraph (a)(2)(iii) Solely because of their recent appointment to a Cabinet-level position, a Government official is invited by the Chief Executive Officer of a major international corporation to attend, in their personal capacity, firm meetings to be held in Aspen for the purpose of addressing senior corporate managers on the importance of recreational activities to a balanced lifestyle. The firm offers to reimburse the official's travel expenses. The official may not accept the offer. The speaking activity is related to official duties under paragraph (a)(2)(i)(B) of this section and, because the official is a covered noncareer employee as defined in § 2636.303(a) of this chapter, the travel expenses are prohibited compensation. Example 3 to paragraph (a)(2)(iii) A GS-14 attorney at the Federal Trade Commission (FTC) who played a lead role in a recently concluded merger case is invited to speak about the case, in a private capacity, at a conference in New York. The attorney has no public speaking responsibilities on behalf of the FTC apart from the judicial and administrative proceedings to which they are assigned. The sponsors of the conference offer to reimburse the attorney for expenses incurred in connection with the travel to New York. They also offer the attorney, as compensation for time and effort, a free trip to San Francisco. The attorney may accept the travel expenses to New York, but not the expenses to San Francisco. The lecture relates to official duties under paragraphs (a)(2)(i)(E)( 1 2 Example 4 to paragraph (a)(2)(iii) An advocacy group dedicated to improving treatments for severe pain asks the National Institutes of Health (NIH) to provide a conference speaker who can discuss recent advances in the agency's research on pain. The group also offers to pay the employee's travel expenses to attend the conference. After performing the required conflict of interest analysis, NIH authorizes acceptance of the travel expenses under 31 U.S.C. 1353 and the implementing General Services Administration regulation, as codified under 41 CFR chapter 304, and authorizes an employee to undertake the travel. At the conference the advocacy group, as agreed, pays the employee's hotel bill, and provides several of the employee's meals. Subsequently the group reimburses the agency for the cost of the employee's airfare and some additional meals. All of the payments by the advocacy group are permissible. Because the employee is speaking officially and the expense payments are accepted under 31 U.S.C. 1353, they are not prohibited compensation under paragraph (a)(2)(iii) of this section. The same result would obtain with respect to expense payments made by non-Government sources properly authorized under an agency gift acceptance statute, the Government Employees Training Act, 5 U.S.C. 4111, or the Foreign Gifts and Decorations Act, 5 U.S.C. 7342. (iv) Receive (A) Paid to another person, including a charitable organization, on the basis of designation, recommendation, or other specification by the employee; or (B) Paid with the employee's knowledge and acquiescence to the employee's parent, sibling, spouse, child, or dependent relative. (v) Particular matter involving specific parties (vi) Personal and substantial participation (3) Exception for teaching certain courses. (i) The regularly established curriculum of: (A) An institution of higher education as defined at 20 U.S.C. 1001 or from a similar foreign institution of higher education; Note 3 to paragraph ( a i When the course is offered as part of the regularly established curriculum of a foreign institution of higher education, the agency may need to make a separate determination as to whether the institution of higher education is a foreign government for purposes of the Emoluments Clause of the U.S. Constitution (U.S. Const., art. I, sec. 9, cl. 8), which forbids employees from accepting emoluments, presents, offices, or titles from foreign governments, without the consent of Congress. (B) An elementary school as defined at 20 U.S.C. 7801(19); or (C) A secondary school as defined at 20 U.S.C. 7801(45); or (ii) A program of education or training sponsored and funded by the Federal Government or by a State or local government which is not offered by an entity described in paragraph (a)(3)(i) of this section. Example 1 to paragraph ( a An employee of the Cost Accounting Standards Board who teaches an advanced accounting course as part of the regular business school curriculum of an accredited university may receive compensation for teaching the course even though a substantial portion of the course deals with cost accounting principles applicable to contracts with the Government. Example 2 to paragraph ( a An attorney employed by the Equal Employment Opportunity Commission (EEOC) may accept compensation for teaching a course at a state college on the subject of EEOC enforcement of Federal employment discrimination law. The attorney could not accept compensation for teaching the same seminar as part of a continuing education program sponsored by a bar association because the subject of the course is focused on the operations or programs of the EEOC, and the sponsor of the course is not an accredited educational institution. Example 3 to paragraph ( a An employee of the National Endowment for the Humanities (NEH) is invited by a private university to teach a course that is a survey of Government policies in support of artists, poets, and writers. As part of official duty activities, the employee administers a grant that the university has received from the NEH. The employee may not accept compensation for teaching the course because the university has interests that may be substantially affected by the performance or nonperformance of the employee's duties. Likewise, an employee may not receive compensation for any teaching that is undertaken as part of official duties or that involves the use of nonpublic information. (b) Reference to official position. (1) Employees may include or permit the inclusion of their title or position as one of several biographical details when such information is given to identify them in connection with their teaching, speaking, or writing, provided that their title or position is given no more prominence than other significant biographical details; (2) Employees may use or permit the use of their title or position in connection with an article published in a scientific or professional journal, provided that the title or position is accompanied by a reasonably prominent disclaimer satisfactory to the agency stating that the views expressed in the article do not necessarily represent the views of the agency or the United States; and (3) Employees who are ordinarily addressed using a general term of address, such as “The Honorable” or “Judge,” or a rank, such as a military or ambassadorial rank, may use or permit the use of that term of address or rank in connection with their teaching, speaking, or writing. Note 4 to paragraph ( b Reference to official title and position other than in a teaching, speaking, or writing capacity may be made only as permitted by § 2635.702(b). In addition, some agencies may have policies requiring advance agency review, clearance, or approval of certain speeches, books, articles, or similar products to determine whether the product contains an appropriate disclaimer, discloses nonpublic information, or otherwise complies with this section. Example 1 to paragraph ( b A meteorologist employed with the National Oceanic and Atmospheric Administration (NOAA) is asked by a local university to teach a graduate course on hurricanes. The university may include the meteorologist's Government title and position together with other information about the meteorologist's education and previous employment in course materials setting forth biographical data on all teachers involved in the graduate program. However, the meteorologist's title or position may not be used to promote the course, for example, by featuring the meteorologist's Government title, Senior Meteorologist, NOAA, in bold type under their name. In contrast, the meteorologist's title may be used in this manner when NOAA authorized speaking in an official capacity. Example 2 to paragraph ( b A doctor just employed by the Centers for Disease Control (CDC) has written a paper based on earlier independent research into cell structures. Incident to the paper's publication in the Journal of the American Medical Association, the doctor may be given credit for the paper, as Dr. M. Wellbeing, Associate Director, Centers for Disease Control, provided that the article also contains a disclaimer, concurred in by the CDC, indicating that the paper is the result of the doctor's independent research and does not represent the findings of the CDC. Example 3 to paragraph ( b An employee of the Federal Deposit Insurance Corporation (FDIC) has been asked to give a speech in a private capacity, without compensation, to the annual meeting of a committee of the American Bankers Association on the need for banking reform. The employee may be described in an introduction at the meeting as an employee of the FDIC provided that other pertinent biographical details are mentioned as well. § 2635.808 Fundraising activities. Employees may engage in fundraising only in accordance with the restrictions in part 950 of this title on the conduct of charitable fundraising in the Federal workplace and in accordance with paragraphs (b) and (c) of this section. This section addresses fundraising as defined in paragraph (a)(1) of this section, and does not cover all scenarios in which an employee might seek to collect donations from a fellow employee. For example, employees of an office might decide to collect money for a coworker whose family was displaced by a flood; the permissibility of such collections should be analyzed under subpart C of this part, not this section. (a) Definitions. (1) Fundraising (i) Solicitation of funds or sale of items; or (ii) Participation in the conduct of an event by an employee when any portion of the cost of attendance or participation may be taken as a charitable tax deduction by a person incurring that cost. (2) Participation in the conduct of an event Example 1 to paragraph (a)(2): (3) Official speech Example 1 to paragraph (a)(3): Example 2 to paragraph (a)(3): (4) Personally solicit Example 1 to paragraph (a)(4): (b) Fundraising in an official capacity. Example 1 to paragraph (b): (c) Fundraising in a personal capacity. (1) Personally solicit funds or other support from a subordinate or from any person: (i) Known to the employee, if the employee is other than a special Government employee, to be a prohibited source within the meaning of § 2635.203(d), unless the circumstances make clear that the solicitation is motivated by a family relationship or personal friendship that would justify the solicitation; or (ii) Known to the employee, if the employee is a special Government employee, to be a prohibited source within the meaning of § 2635.203(d)(4) that is a person whose interests may be substantially affected by performance or nonperformance of the employee's official duties, unless the circumstances make clear that the solicitation is motivated by a family relationship or personal friendship that would justify the solicitation; (2) Use or permit the use of the employee's official title, position, or any authority associated with the employee's public office to further the fundraising effort, except that an employee who is ordinarily addressed using a general term of address, such “The Honorable,” or a rank, such as a military or ambassadorial rank, may use or permit the use of that term of address or rank for such purposes; or (3) Engage in any action that would otherwise violate this part. Note 1 to paragraph ( c This section does not prohibit fundraising for a political party, candidate for partisan political office, or partisan political group. However, there are statutory restrictions that apply to political fundraising. For example, under the Hatch Act Reform Amendments of 1993, at 5 U.S.C. 7323(a), employees may not knowingly solicit, accept, or receive a political contribution from any person, except under limited circumstances. In addition, employees are prohibited by 18 U.S.C. 607 from soliciting or receiving political contributions in Federal offices, and, except as permitted by the Hatch Act Reform Amendments, are prohibited by 18 U.S.C. 602 from knowingly soliciting political contributions from other employees. Example 1 to paragraph (c): Example 2 to paragraph (c): Example 3 to paragraph (c): Example 4 to paragraph (c): Example 5 to paragraph (c): Example 6 to paragraph (c): § 2635.809 Just financial obligations. Employees must satisfy in good faith their obligations as citizens, including all just financial obligations, especially those such as Federal, State, or local taxes that are imposed by law. For purposes of this section, a just financial obligation includes any financial obligation acknowledged by the employee or reduced to judgment by a court. In good faith means an honest intention to fulfill any just financial obligation in a timely manner. In the event of a 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 or to collect a debt on the alleged creditor's behalf. Subpart I—Related Statutory Authorities Source: 89 FR 43695, May 17, 2024, unless otherwise noted. § 2635.901 General. In addition to the Standards of Ethical Conduct set forth in subparts A through H of this part, there are a number of statutes that establish standards to which an employee's conduct must conform. The list set forth in § 2635.902 references some of the more significant of those statutes. It is not comprehensive and includes only references to statutes of general applicability. While it includes references to several of the basic conflict of interest statutes whose standards are explained in more detail throughout this part, it does not include references to statutes of more limited applicability, such as statutes that apply only to officers and employees of the Department of Defense. § 2635.902 Related statutes. (a) The prohibition against solicitation or receipt of bribes (18 U.S.C. 201(b)). (b) The prohibition against solicitation or receipt of illegal gratuities (18 U.S.C. 201(c)). (c) The prohibition against seeking or receiving compensation for certain representational services before the Government (18 U.S.C. 203). (d) The prohibition against assisting in the prosecution of claims against the Government or acting as agent or attorney before the Government (18 U.S.C. 205). (e) The post-employment restrictions applicable to former employees (18 U.S.C. 207 and the regulation at part 2641 of this chapter). (f) The prohibition on certain former agency officials' acceptance of compensation from a contractor (41 U.S.C. 2104). (g) The prohibition against participating in matters affecting an employee's own financial interests or the financial interests of other specified persons or organizations (18 U.S.C. 208 and the regulation at part 2640 of this chapter). (h) The actions required of certain agency officials when they contact, or are contacted by, offerors or bidders regarding non-Federal employment (41 U.S.C. 2103). (i) The prohibition against receiving salary or any contribution to or supplementation of salary as compensation for Government service from a source other than the United States (18 U.S.C. 209). (j) The prohibition against gifts to superiors (5 U.S.C. 7351). (k) The prohibition against solicitation or receipt of gifts from specified prohibited sources (5 U.S.C. 7353). (l) The prohibition against fraudulent access and related activity in connection with computers (18 U.S.C. 1030). (m) The provisions governing receipt and disposition of foreign gifts and decorations (5 U.S.C. 7342). (n) [Reserved] (o) The prohibitions against certain political activities (5 U.S.C. 7321 through 7326 and 18 U.S.C. 602, 603, 606, and 607). (p) The prohibitions against disloyalty and striking (5 U.S.C. 7311 and 18 U.S.C. 1918). (q) The general prohibition (18 U.S.C. 219) against acting as the agent of a foreign principal required to register under the Foreign Agents Registration Act (22 U.S.C. 611 through 621). (r) The prohibition against employment of a person convicted of participating in or promoting a riot or civil disorder (5 U.S.C. 7313). (s) The prohibition against employment of an individual who habitually uses intoxicating beverages to excess (5 U.S.C. 7352). (t) The prohibition against misuse of a Government vehicle (31 U.S.C. 1344). (u) The prohibition against misuse of the franking privilege (18 U.S.C. 1719). (v) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001). (w) The prohibition against concealing, mutilating, or destroying a public record (18 U.S.C. 2071). (x) The prohibition against counterfeiting or forging transportation requests (18 U.S.C. 508). (y) The restrictions on disclosure of certain sensitive Government information under the Freedom of Information Act and the Privacy Act (5 U.S.C. 552 and 552a). (z) The prohibitions against disclosure of classified information (18 U.S.C. 798 and 50 U.S.C. 783(a)). (aa) The prohibition against disclosure of proprietary information and certain other information of a confidential nature (18 U.S.C. 1905). (bb) The prohibitions on disclosing and obtaining certain procurement information (41 U.S.C. 2102). (cc) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285). (dd) The prohibition against certain personnel practices (5 U.S.C. 2302). (ee) The prohibition against interference with civil service examinations (18 U.S.C. 1917). (ff) The restrictions on use of public funds for lobbying (18 U.S.C. 1913). (gg) The prohibition against participation in the appointment or promotion of relatives (5 U.S.C. 3110). (hh) The prohibition against solicitation or acceptance of anything of value to obtain public office for another (18 U.S.C. 211). (ii) The prohibition against conspiracy to commit an offense against or to defraud the United States (18 U.S.C. 371). (jj) The prohibition against embezzlement or conversion of Government money or property (18 U.S.C. 641). (kk) The prohibition against failing to account for public money (18 U.S.C. 643). (ll) The prohibition against embezzlement of the money or property of another person that is in the possession of an employee by reason of their employment (18 U.S.C. 654). Subpart J—Legal Expense Funds Source: 88 FR 33809, May 25, 2023, unless otherwise noted. § 2635.1001 Overview. This subpart contains standards for an employee's acceptance of payments for legal expenses through a legal expense fund and an employee's acceptance of pro bono § 2635.1002 Applicability and related considerations. (a) Applicability. pro bono pro bono (b) Not covered by this subpart. pro bono (1) Personal matters. pro bono Example 1 to paragraph (b)(1): (2) Gifts acceptable according to a gift exclusion or exception. pro bono Example 1 to paragraph (b)(2): Note 1 to paragraph (b): pro bono (c) Related considerations Gifts between employees. pro bono (2) Impartiality. (A) The trustee; (B) An individual, entity, or organization donating pro bono pro bono (C) An individual or entity that made a donation of $250 or more in a calendar year to the legal expense fund. (ii) The employee beneficiary's period of disqualification from particular matters involving specific parties involving the trustee runs from the assumption of the trustee position until two years after the trustee's resignation, if the trustee resigns, or two years after the termination of the trust. The employee's period of disqualification from particular matters involving specific parties involving each pro bono pro bono pro bono Example 1 to paragraph (c)(2): (3) Misuse of position. Example 1 to paragraph (c)(3): (4) Financial disclosure. pro bono § 2635.1003 Definitions. For purposes of this subpart: Anonymous whistleblower Arising in connection with the employee's past or current official position Example 1 to the definition of “arising in connection with the employee's past or current official position”: Example 2 to the definition of “arising in connection with the employee's past or current official position”: Arising in connection with the employee's prior position on a campaign Arising in connection with the employee's prior position on a Presidential Transition Team Employee beneficiary Legal expense fund Legal expense payment or payment for legal expenses Pro bono legal services § 2635.1004 Establishment. (a) Structure. (b) Grantor. (c) Trustee. (1) The employee beneficiary; (2) A spouse, parent, or child of the employee beneficiary; (3) Any other employee of the Federal executive, legislative, or judicial branches; (4) An agent of a foreign government as defined in 5 U.S.C. 7342(a)(2); (5) A foreign national; (6) A lobbyist as defined by 2 U.S.C. 1602(10) who is currently registered pursuant to 2 U.S.C. 1603(a); or (7) A person who has interests that may be substantially affected by the performance or nonperformance of the employee beneficiary's official duties. (d) Employee beneficiary. (2) A legal expense fund for the benefit of an anonymous whistleblower may be established without disclosing the identity of the anonymous whistleblower to anyone other than the trustee so long as the legal expense fund is created for the purpose of funding expenses in connection with the whistleblowing activity or the facts that underlie that activity. (e) Filing and approval of legal expense fund trust document required. (1) Filing the legal expense fund document in accordance with paragraph (f) of this section; and (2) Receiving approval for the legal expense fund in accordance with paragraph (g)(1) or (g)(3) of this section. (f) Filing of legal expense fund trust document. (2) An employee beneficiary who is an anonymous whistleblower may choose to file a legal expense fund trust document anonymously through the employee beneficiary's trustee or representative with the Office of Government Ethics only. The Office of Government Ethics will not receive reports containing classified material; if needed, an OGE employee with a security clearance will review any classified documents in a secure agency space, consistent with the current practice for other ethics documents containing classified material. (g) Approval of legal expense fund trust document. Designated agency ethics official approval. (i) Standard for approval. (ii) Transmission of trust documents to the Office of Government Ethics. (iii) Exception for anonymous whistleblowers. (2) Office of Government Ethics review. (i) Standard for review. (ii) Employee beneficiaries requiring secondary Office of Government Ethics review. (A) The Postmaster General; (B) The Deputy Postmaster General; (C) The Governors of the Board of Governors of the United States Postal Service; (D) Employees of the White House Office and the Office of the Vice President; and (E) Officers and employees in offices and positions which require confirmation by the Senate, other than members of the uniformed services and Foreign Service Officers below the rank of Ambassador. (3) Review for designated agency ethics officials. (4) Right to Appeal. www.oge.gov. [email protected] (h) Amendments. (i) One legal expense fund. (j) Conforming existing legal expense funds. (k) Public access. § 2635.1005 Administration. (a) Trustee's duties and powers. (1) Operating the legal expense fund trust consistent with this part and applicable state law; (2) Operating as a fiduciary for the employee beneficiary in relation to the legal expense fund property and the legal expense fund purpose; (3) Providing information to the employee beneficiary as necessary to comply with the Ethics in Government Act, 5 U.S.C. 13104(a)(2), part 2634 of this chapter, and this part; and (4) Notifying donors and payees whose contributions and distributions, respectively, are reportable that their names will be disclosed on the OGE website. (b) Limitation on role of the employee beneficiary. § 2635.1006 Contributions and use of funds. (a) Contributions. (b) Permissible donors. (1) An individual who is not: (i) An agent of a foreign government as defined in 5 U.S.C. 7342(a)(2); (ii) A foreign national; (iii) A lobbyist as defined by 2 U.S.C. 1602(10) who is currently registered pursuant to 2 U.S.C. 1603(a); (iv) Acting on behalf of, or at the direction of, another individual or entity in making a donation; (v) Donating anonymously; (vi) Seeking official action by the employee beneficiary's agency; (vii) Doing business or seeking to do business with the employee beneficiary's agency; (viii) Conducting activities regulated by the employee beneficiary's agency other than regulations or actions affecting the interests of a large and diverse group of persons; Example 1 to paragraph (b)(1)(viii): (ix) Substantially affected by the performance or nonperformance of the employee beneficiary's official duties; or (x) An officer or director of an entity that is substantially affected by the performance or nonperformance of the employee beneficiary's official duties. (2) A national committee of a political party as defined by 52 U.S.C. 30101(14) and (16) or, for former members of a campaign of a candidate for President or Vice President, the campaign, provided that the donation is not otherwise prohibited by law and the entity is not substantially affected by the performance or nonperformance of an employee beneficiary's official duties; or (3) An organization, established for more than two years, that is: (i) described in section 501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of the Internal Revenue Code, and (ii) not substantially affected by the performance or nonperformance of an employee beneficiary's official duties. Note 1 to paragraph (b): (c) Contribution limits. Note 2 to paragraph (c): pro bono (d) Use of funds. (1) An employee beneficiary's expenses related to those legal proceedings arising in connection with the employee's past or current official position, the employee's prior position on a campaign of a candidate for President or Vice President, or the employee's prior position on a Presidential Transition Team; (2) Expenses incurred in soliciting for and administering the fund; and (3) Expenses for the discharge of Federal, state, and local tax liabilities that are incurred as a result of the creation, operation, or administration of the fund. Example 1 to paragraph (d): § 2635.1007 Reporting requirements. (a) Quarterly reports. (1) Contributions. (2) Distributions. (b) Filing of reports. (2) An employee beneficiary who is an anonymous whistleblower may choose to file reports anonymously through the employee beneficiary's trustee or representative with the Office of Government Ethics. The Office of Government Ethics will not receive reports containing classified material; if needed, an OGE employee with a security clearance will review any classified documents in a secure agency space, consistent with the current practice for other ethics documents containing classified material. (c) Reporting periods and due dates. (1) January 1 to March 31, with the report due on April 30. (2) April 1 to June 30, with the report due on July 30. (3) July 1 to September 30, with the report due on October 30. (4) October 1 to December 31, with the report due on January 30 of the following year. (5) If the scheduled due date falls on a Saturday, Sunday or Federal Holiday, the report will instead be due the next business day. (d) Employment termination report. (1) A report of contributions received and distributions made as required by paragraph (a) of this section between the end of the last quarterly reporting period and the date of the report; and (2) A statement as to whether the trust will be terminated or remain in force after the employee beneficiary terminates their executive branch employment. (e) Extensions. (f) Review of reports. Designated agency ethics official review. (i) Standard for review. (A) The information required under paragraph (a) of this section is reported for each contribution and distribution; and (B) Contributions to and distributions from the trust are in compliance with § 2635.1006. (ii) Transmission of reports to the Office of Government Ethics. (iii) Office of Government Ethics review for anonymous whistleblowers. (2) Office of Government Ethics review. (i) Standard for review. (ii) Employee beneficiaries requiring secondary Office of Government Ethics review. (A) The Postmaster General; (B) The Deputy Postmaster General; (C) The Governors of the Board of Governors of the United States Postal Service; (D) Employees of the White House Office and the Office of the Vice President; and (E) Officers and employees in offices and positions which require confirmation by the Senate, other than members of the uniformed services and Foreign Service Officers below the rank of Ambassador. (3) Review for designated agency ethics official. (i) The information required under paragraph (a) of this section is reported for each contribution and distribution; and (ii) Contributions to and distributions from the trust are in compliance with § 2635.1006. (g) Public access. (h) Noncompliance. Receipt of impermissible contributions. (2) Late filing of required documents and reports. Example 1 to paragraph (h)(2): (3) Continuing or other significant noncompliance. § 2635.1008 Termination of a legal expense fund. (a) Voluntary termination. (1) The purpose of the trust is fulfilled or no longer exists; or (2) At the direction of the employee beneficiary. (b) Mandatory termination. (c) Excess funds. (d) Trust termination report. (e) Exception for anonymous whistleblowers. § 2635.1009 Pro bono legal services. (a) Acceptance of permissible pro bono legal services. pro bono (1) Any individual who: (i) Is not an agent of a foreign government as defined in 5 U.S.C. 7342(a)(2); (ii) Is not a foreign national; (iii) Is not a lobbyist as defined by 2 U.S.C. 1602(10) who is currently registered pursuant to 2 U.S.C. 1603(a); and (iv) Does not have interests that may be substantially affected by the performance or nonperformance of the employee's official duties; and (2) An organization or entity that does not have interests that may be substantially affected by the performance or nonperformance of an employee's official duties. Note 1 to paragraph (a): pro bono (b) Provision of outside legal services. pro bono services” (c) Role of designated agency ethics official. Example 1 to paragraph (c): pro bono Example 2 to paragraph (c): pro bono pro bono Example 3 to paragraph (c): Example 4 to paragraph (c): pro bono pro bono (d) Appeal process. pro bono pro bono