[Title 5 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2020 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          
          
          Title 5

Administrative Personnel


________________________

Part 1200 to End

                         Revised as of January 1, 2020

          Containing a codification of documents of general 
          applicability and future effect

          As of January 1, 2020
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

[[Page ii]]

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[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................    viii

  Title 5:
          Chapter II--Merit Systems Protection Board                 5
          Chapter III--Office of Management and Budget             117
          Chapter IV--Office of Personnel Management and 
          Office of the Director of National Intelligence          197
          Chapter V--The International Organizations Employees 
          Loyalty Board                                            205
          Chapter VI--Federal Retirement Thrift Investment 
          Board                                                    211
          Chapter VIII--Office of Special Counsel                  341
          Chapter IX--Appalachian Regional Commission              369
          Chapter XI--Armed Forces Retirement Home                 373
          Chapter XIV--Federal Labor Relations Authority, 
          General Counsel of the Federal Labor Relations 
          Authority and Federal Service Impasses Panel             381
          Chapter XVI--Office of Government Ethics                 511
          Chapter XXI--Department of the Treasury                  755
          Chapter XXII--Federal Deposit Insurance Corporation      765
          Chapter XXIII--Department of Energy                      775
          Chapter XXIV--Federal Energy Regulatory Commission       779

[[Page iv]]

          Chapter XXV--Department of the Interior                  785
          Chapter XXVI--Department of Defense                      793
          Chapter XXVIII--Department of Justice                    799
          Chapter XXIX--Federal Communications Commission          805
          Chapter XXX--Farm Credit System Insurance 
          Corporation                                              809
          Chapter XXXI--Farm Credit Administration                 815
          Chapter XXXIII--US International Development Finance 
          Corporation                                              821
          Chapter XXXIV--Securities and Exchange Commission        825
          Chapter XXXV--Office of Personnel Management             833
          Chapter XXXVI--Department of Homeland Security           837
          Chapter XXXVII--Federal Election Commission              845
          Chapter XL--Interstate Commerce Commission               849
          Chapter XLI--Commodity Futures Trading Commission        853
          Chapter XLII--Department of Labor                        857
          Chapter XLIII--National Science Foundation               863
          Chapter XLV--Department of Health and Human Services     869
          Chapter XLVI--Postal Rate Commission                     891
          Chapter XLVII--Federal Trade Commission                  897
          Chapter XLVIII--Nuclear Regulatory Commission            901
          Chapter XLIX--Federal Labor Relations Authority          907
          Chapter L--Department of Transportation                  913
          Chapter LII--Export-Import Bank of the United States     917

[[Page v]]

          Chapter LIII--Department of Education                    921
          Chapter LIV--Environmental Protection Agency             925
          Chapter LV--National Endowment for the Arts              931
          Chapter LVI--National Endowment for the Humanities       935
          Chapter LVII--General Services Administration            939
          Chapter LVIII--Board of Governors of the Federal 
          Reserve System                                           945
          Chapter LIX--National Aeronautics and Space 
          Administration                                           951
          Chapter LX--United States Postal Service                 957
          Chapter LXI--National Labor Relations Board              961
          Chapter LXII--Equal Employment Opportunity 
          Commission                                               965
          Chapter LXIII--Inter-American Foundation                 969
          Chapter LXIV--Merit Systems Protection Board             973
          Chapter LXV--Department of Housing and Urban 
          Development                                              977
          Chapter LXVI--National Archives and Records 
          Administration                                           983
          Chapter LXVII--Institute of Museum and Library 
          Services                                                 987
          Chapter LXVIII--Commission on Civil Rights               991
          Chapter LXIX--Tennessee Valley Authority                 995
          Chapter LXX--Court Services and Offender Supervision 
          Agency for the District of Columbia                      999
          Chapter LXXI--Consumer Product Safety Commission        1003
          Chapter LXXIII--Department of Agriculture               1007
          Chapter LXXIV--Federal Mine Safety and Health Review 
          Commission                                              1015
          Chapter LXXVI--Federal Retirement Thrift Investment 
          Board                                                   1019

[[Page vi]]

          Chapter LXXVII--Office of Management and Budget         1023
          Chapter LXXX--Federal Housing Finance Agency            1027
          Chapter LXXXIII--Special Inspector General for 
          Afghanistan Reconstruction                              1035
          Chapter LXXXIV--Bureau of Consumer Financial 
          Protection                                              1055
          Chapter LXXXVI--National Credit Union Administration    1067
          Chapter XCVII--Department of Homeland Security Human 
          Resources Management System (Department of Homeland 
          Security--Office of Personnel Management)               1071
          Chapter XCVIII--Council of the Inspectors General on 
          Integrity and Efficiency                                1125
          Chapter XCIX--Military Compensation and Retirement 
          Modernization Commission                                1149
          Chapter C--National Council on Disability               1157
          Chapter CI--National Mediation Board                    1175
  Finding Aids:
      Table of CFR Titles and Chapters........................    1181
      Alphabetical List of Agencies Appearing in the CFR......    1201
      List of CFR Sections Affected...........................    1211

[[Page vii]]





                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 5 CFR 1200.1 refers 
                       to title 5, part 1200, 
                       section 1.

                     ----------------------------

[[Page viii]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, January 1, 2020), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
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instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page ix]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
the revision date stated on the cover of each volume are not carried. 
Code users may find the text of provisions in effect on any given date 
in the past by using the appropriate List of CFR Sections Affected 
(LSA). For the convenience of the reader, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume. For changes to 
the Code prior to the LSA listings at the end of the volume, consult 
previous annual editions of the LSA. For changes to the Code prior to 
2001, consult the List of CFR Sections Affected compilations, published 
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.

``[RESERVED]'' TERMINOLOGY

    The term ``[Reserved]'' is used as a place holder within the Code of 
Federal Regulations. An agency may add regulatory information at a 
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
editorially to indicate that a portion of the CFR was left vacant and 
not dropped in error.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
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to materials already published elsewhere. For an incorporation to be 
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if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed as 
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notify the Director of the Federal Register, National Archives and 
Records Administration, 8601 Adelphi Road, College Park, MD 20740-6001, 
or call 202-741-6010.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Authorities 
and Rules. A list of CFR titles, chapters, subchapters, and parts and an 
alphabetical list of agencies publishing in the CFR are also included in 
this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.

[[Page x]]

    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
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the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, 8601 Adelphi Road, College Park, MD 
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    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
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law numbers, Federal Register finding aids, and related information. 
Connect to NARA's website at www.archives.gov/federal-register.
    The e-CFR is a regularly updated, unofficial editorial compilation 
of CFR material and Federal Register amendments, produced by the Office 
of the Federal Register and the Government Publishing Office. It is 
available at www.ecfr.gov.

    Oliver A. Potts,
    Director,
    Office of the Federal Register
    January 1, 2020







[[Page xi]]



                               THIS TITLE

    Title 5--Administrative Personnel is composed of three volumes. The 
parts in these volumes are arranged in the following order: Parts 1-699, 
700-1199 and part 1200-end. The contents of these volumes represent all 
current regulations codified under this title of the CFR as of January 
1, 2020.

    For this volume, Cheryl E. Sirofchuck was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of John 
Hyrum Martinez, assisted by Stephen J. Frattini.

[[Page 1]]



                    TITLE 5--ADMINISTRATIVE PERSONNEL




                  (This book contains part 1200 to end)

  --------------------------------------------------------------------

  Editorial Note: Title 5 of the United States Code was revised and 
enacted into positive law by Pub. L. 89-554, Sept. 6, 1966. New 
citations for obsolete references to sections of 5 U.S.C. appearing in 
this volume may be found in a redesignation table under Title 5, 
Government Organization and Employees, United States Code.
                                                                    Part

chapter ii--Merit Systems Protection Board..................        1200

chapter iii--Office of Management and Budget................        1300

chapter iv--Office of Personnel Management and Office of the 
  Director of National Intelligence.........................        1400

chapter v--The International Organizations Employees Loyalty 
  Board.....................................................        1501

chapter vi--Federal Retirement Thrift Investment Board......        1600

chapter viii--Office of Special Counsel.....................        1800

chapter ix--Appalachian Regional Commission.................        1900

chapter xi--Armed Forces Retirement Home....................        2100

chapter xiv--Federal Labor Relations Authority, General 
  Counsel of the Federal Labor Relations Authority and 
  Federal Service Impasses Panel............................        2411

 Appendix A to 5 CFR Chapter XIV--Current Addresses and Geographic 
  Jurisdictions.

 Appendix B to 5 CFR Chapter XIV--Memorandum Describing the Authority 
  and Assigned Responsibilities of the General Counsel of the Federal 
  Labor Relations Authority.

chapter xv--Office of Administration, Executive Office of 
  the President.............................................        2500

chapter xvi--Office of Government Ethics....................        2600

[[Page 2]]


chapter xxi--Department of the Treasury.....................        3101

chapter xxii--Federal Deposit Insurance Corporation.........        3201

chapter xxiii--Department of Energy.........................        3301

chapter xxiv--Federal Energy Regulatory Commission..........        3401

chapter xxv--Department of the Interior.....................        3501

chapter xxvi--Department of Defense.........................        3601

chapter xxviii--Department of Justice.......................        3801

chapter xxix--Federal Communications Commission.............        3901

chapter xxx--Farm Credit System Insurance Corporation.......        4001

chapter xxxi--Farm Credit Administration....................        4101

chapter xxxiii--US Development Finance Corporation..........        4301

chapter xxxiv--Securities and Exchange Commission...........        4401

chapter xxxv--Office of Personnel Management................        4501

chapter xxxvi--Department of Homeland Security..............        4601

chapter xxxvii--Federal Election Commission.................        4701

chapter xl--Interstate Commerce Commission..................        5001

chapter xli--Commodity Futures Trading Commission...........        5101

chapter xlii--Department of Labor...........................        5201

chapter xliii--National Science Foundation..................        5301

chapter xlv--Department of Health and Human Services........        5501

chapter xlvi--Postal Rate Commission........................        5601

chapter xlvii--Federal Trade Commission.....................        5701

chapter xlviii--Nuclear Regulatory Commission...............        5801

chapter xlix--Federal Labor Relations Authority.............        5901

chapter l--Department of Transportation.....................        6001

chapter lii--Export-Import Bank of the United States........        6201

chapter liii--Department of Education.......................        6301

chapter liv--Environmental Protection Agency................        6401

chapter lv--National Endowment for the Arts.................        6501

chapter lvi--National Endowment for the Humanities..........        6601

chapter lvii--General Services Administration...............        6701

chapter lviii--Board of Governors of the Federal Reserve 
  System....................................................        6801

chapter lix--National Aeronautics and Space Administration..        6901

[[Page 3]]


chapter lx--United States Postal Service....................        7001

chapter lxi--National Labor Relations Board.................        7101

chapter lxii--Equal Employment Opportunity Commission.......        7201

chapter lxiii--Inter-American Foundation....................        7301

chapter lxiv--Merit Systems Protection Board................        7401

chapter lxv--Department of Housing and Urban Development....        7501

chapter lxvi--National Archives and Records Administration..        7601

chapter lxvii--Institute of Museum and Library Services.....        7701

chapter lxviii--Commission on Civil Rights..................        7801

chapter lxix--Tennessee Valley Authority....................        7901

chapter lxx--Court Services and Offender Supervision Agency 
  for the District of Columbia..............................        8001

chapter lxxi--Consumer Product Safety Commission............        8101

chapter lxxiii--Department of Agriculture...................        8301

chapter lxxiv--Federal Mine Safety and Health Review 
  Commission................................................        8401

chapter lxxvi--Federal Retirement Thrift Investment Board...        8601

chapter lxxvii--Office of Management and Budget.............        8701

chapter lxxx--Federal Housing Finance Agency................        9001

chapter lxxxiii--Special Inspector General for Afghanistan 
  Reconstruction............................................        9301

chapter lxxxiv--Bureau of Consumer Financial Protection.....        9401

chapter lxxxvi--National Credit Union Administration........        9601

chapter xcvii--Department of Homeland Security Human 
  Resources Management System (Department of Homeland 
  Security--Office of Personnel Management).................        9701

chapter xcviii--Council of the Inspectors General on 
  Integrity and Efficiency..................................        9800

chapter xcix--Military Compensation and Retirement 
  Modernization Commission..................................        9901

chapter c--National Council On Disability...................       10000

chapter ci--National Mediation Board........................       10000

[[Page 5]]



               CHAPTER II--MERIT SYSTEMS PROTECTION BOARD




  --------------------------------------------------------------------

                SUBCHAPTER A--ORGANIZATION AND PROCEDURES
Part                                                                Page
1200            Board organization..........................           7
1201            Practices and procedures....................           9
1202            Statutory Review Board......................          62
1203            Procedures for review of rules and 
                    regulations of the Office of Personnel 
                    Management..............................          62
1204            Availability of official information........          66
1205            Privacy Act regulations.....................          72
1206            Open meetings...............................          76
1207            Enforcement of nondiscrimination on the 
                    basis of disability in programs or 
                    activities conducted by the Merit 
                    Systems Protection Board................          79
1208            Practices and procedures for appeals under 
                    the Uniformed Services Employment and 
                    Reemployment Rights Act and the Veterans 
                    Employment Opportunities Act............          86
1209            Practices and procedures for appeals and 
                    stay requests of personnel actions 
                    allegedly based on whistleblowing or 
                    other protected activity................          91
1210            Practices and procedures for an appeal of a 
                    removal ortransfer of a Senior Executive 
                    Service employee by the Secretary of the 
                    Department of Veterans Affairs..........          97
1211-1214

 [Reserved]

1215            Debt management.............................         103
1216            Testimony by MSPB employees relating to 
                    official information and production of 
                    official records in legal proceedings...         110
1217-1299

 [Reserved]

[[Page 7]]



                SUBCHAPTER A_ORGANIZATION AND PROCEDURES





PART 1200_BOARD ORGANIZATION--Table of Contents



                            Subpart A_General

Sec.
1200.1 Statement of purpose.
1200.2 Board members and duties.
1200.3 How the Board members make decisions.
1200.4 Petition for rulemaking.

                     Subpart B_Offices of the Board

1200.10 Staff organization and functions.

    Source: 56 FR 41747, Aug. 23, 1991, unless otherwise noted.



                            Subpart A_General

    Authority: 5 U.S.C. 1201 et seq.



Sec.  1200.1  Statement of purpose.

    The Merit Systems Protection Board (the Board) is an independent 
Government agency that operates like a court. The Board was created to 
ensure that all Federal government agencies follow Federal merit systems 
practices. The Board does this by adjudicating Federal employee appeals 
of agency personnel actions, and by conducting special reviews and 
studies of Federal merit systems.

[56 FR 41747, Aug. 23, 1991, as amended at 59 FR 65233, Dec. 19, 1994]



Sec.  1200.2  Board members and duties.

    (a) The Board has three members whom the President appoints and the 
Senate confirms. Members of the Board serve seven-year terms.
    (b) The President appoints, with the Senate's consent, one member of 
the Board to serve as Chairman and chief executive officer of the Board. 
The President also appoints one member of the Board to serve as Vice 
Chairman. If the office of the Chairman is vacant or the Chairman cannot 
perform his or her duties, then the Vice Chairman performs the 
Chairman's duties. If both the Chairman and the Vice Chairman cannot 
perform their duties, then the remaining Board Member performs the 
Chairman's duties.

[56 FR 41747, Aug. 23, 1991, as amended at 59 FR 65233, Dec. 19, 1994]



Sec.  1200.3  How the Board members make decisions.

    (a) The three Board members make decisions in all cases by majority 
vote except in circumstances described in paragraphs (b) and (c) of this 
section or as otherwise provided by law.
    (b) When due to a vacancy, recusal or other reasons, the Board 
members are unable to decide any case by majority vote, the decision, 
recommendation or order under review shall be deemed the final decision 
or order of the Board. The Chairman of the Board may direct the issuance 
of an order consistent with this paragraph.
    (c) When due to a vacancy, recusal or other reasons, the Board 
members are unable to decide a matter in a case which does not involve a 
decision, recommendation or order, the Chairman may direct referral of 
the matter to an administrative judge or other official for final 
disposition.
    (d) Decisions and orders issued pursuant to paragraphs (b) and (c) 
of this section shall not be precedential.
    (e) This section applies only when at least two Board members are in 
office.

[59 FR 39937, Aug. 5, 1994]



Sec.  1200.4  Petition for rulemaking.

    (a) Any interested person may petition the MSPB for the issuance, 
amendment, or repeal of a rule. For purposes of this regulation, a 
``rule'' means a regulation contained in 5 CFR parts 1200 through 1216. 
Each petition shall:
    (1) Be submitted to the Clerk of the Board, 1615 M Street NW., 
Washington, DC 20419;
    (2) Set forth the text or substance of the rule or amendment 
proposed or specify the rule sought to be repealed;
    (3) Explain the petitioner's interest in the action sought; and
    (4) Set forth all data and arguments available to the petitioner in 
support of the action sought.

[[Page 8]]

    (b) No public procedures will be held on the petition before its 
disposition. If the MSPB finds that the petition contains adequate 
justification, a rulemaking proceeding will be initiated or a final rule 
will be issued as appropriate under the Administrative Procedure Act. If 
the Board finds that the petition does not contain adequate 
justification, the petition will be denied by letter or other notice, 
with a brief statement of the ground for denial. The Board may consider 
new evidence at any time; however, repetitious petitions for rulemaking 
will not be considered.

[77 FR 62363, Oct. 12, 2012]



                     Subpart B_Offices of the Board

    Authority: 5 U.S.C. 1204 (h) and (j).



Sec.  1200.10  Staff organization and functions.

    (a) The Board's headquarters staff is organized into the following 
offices and divisions:
    (1) Office of Regional Operations.
    (2) Office of the Administrative Law Judge.
    (3) Office of Appeals Counsel.
    (4) Office of the Clerk of the Board.
    (5) Office of the General Counsel.
    (6) Office of Policy and Evaluation.
    (7) Office of Equal Employment Opportunity.
    (8) Office of Financial and Administrative Management.
    (9) Office of Information Resources Management.
    (b) The principal functions of the Board's headquarters offices are 
as follows:
    (1) Office of Regional Operations. The Director, Office of Regional 
Operations, manages the adjudicatory and administrative functions of the 
MSPB regional and field offices.
    (2) Office of the Administrative Law Judge. The Administrative Law 
Judge hears Hatch Act cases, disciplinary action complaints brought by 
the Special Counsel, actions against administrative law judges, appeals 
of actions taken against MSPB employees, and other cases that the Board 
assigns.
    (3) Office of Appeals Counsel. The Director, Office of Appeals 
Counsel, prepares proposed decisions that recommend appropriate action 
by the Board in petition for review cases, original jurisdiction cases, 
and other cases assigned by the Board.
    (4) Office of the Clerk of the Board. The Clerk of the Board enters 
petitions for review and other headquarters cases onto the Board's 
docket and monitors their processing. The Clerk of the Board also does 
the following:
    (i) Serves as the Board's public information center, including 
providing information on the status of cases, distributing copies of 
Board decisions and publications, and operating the Board's Library and 
on-line information services;
    (ii) Manages the Board's records, reports, legal research, and 
correspondence control programs; and
    (iii) Answers requests under the Freedom of Information and Privacy 
Acts at the Board's headquarters, and answers other requests for 
information except those for which the Office of the General Counsel or 
the Office of Policy and Evaluation is responsible.
    (5) Office of the General Counsel. The General Counsel provides 
legal advice to the Board and its headquarters and regional offices; 
represents the Board in court proceedings; prepares proposed decisions 
for the Board in cases that the Board assigns; coordinates legislative 
policy and performs legislative liaison; responds to requests for non-
case related information from the White House, Congress, and the media; 
and plans and directs audits and investigations.
    (6) Office of Policy and Evaluation. The Director, Policy and 
Evaluation, carries out the Board's statutory responsibility to conduct 
special reviews and studies of the civil service and other merit systems 
in the Executive Branch, as well as oversight reviews of the significant 
actions of the Office of Personnel Management. The office prepares the 
Board's reports of these reviews and studies, submits them to the 
President and the Congress, and makes them available to other interested 
individuals and organizations. The office is responsible for 
distributing the Board's reports and for responding to requests for 
information or briefings concerning them.

[[Page 9]]

    (7) Office of Equal Employment Opportunity. The Director, Office of 
Equal Employment Opportunity, manages the Board's equal employment 
programs.
    (8) Office of Financial and Administrative Management. The Office of 
Financial and Administrative Management administers the budget, 
accounting, procurement, property management, physical security, and 
general services functions of the Board. It also develops and 
coordinates internal management programs and projects, including review 
of internal controls agencywide. It performs certain personnel 
functions, including policy, training, drug testing, and the Employee 
Assistance Program. It also administers the agency's cross-servicing 
arrangements with the U.S. Department of Treasury's Bureau of Public 
Debt for accounting services and with the U.S. Department of 
Agriculture's National Finance Center for payroll and personnel action 
processing services and with the U.S. Department of Agriculture's APHIS 
Business Services for most human resources management services.
    (9) Office of Information Resources Management. The Office of 
Information Resources Management develops, implements, and maintains the 
Board's automated information systems.
    (c) Regional and Field Offices. The Board has regional and field 
offices located throughout the country (See Appendix II to 5 CFR part 
1201 for a list of the regional and field offices). Judges in the 
regional and field offices hear and decide initial appeals and other 
assigned cases as provided for in the Board's regulations.

[62 FR 49589, Sept. 23, 1997, as amended at 64 FR 15916, Apr. 2, 1999; 
70 FR 30608, May 27, 2005]



PART 1201_PRACTICES AND PROCEDURES--Table of Contents



                 Subpart A_Jurisdiction and Definitions

Sec.
1201.1 General.
1201.2 Original jurisdiction.
1201.3 Appellate jurisdiction.
1201.4 General definitions.

                Subpart B_Procedures for Appellate Cases

                                 General

1201.11 Scope and policy.
1201.12 Revocation, amendment, or waiver of rules.
1201.13 Appeals by Board employees.
1201.14 Electronic filing procedures.

                   Appeal of Agency Action; Pleadings

1201.21 Notice of appeal rights.
1201.22 Filing an appeal and responses to appeals.
1201.23 Computation of time.
1201.24 Content of an appeal; right to hearing.
1201.25 Content of agency response.
1201.26 Number of pleadings, service, and response.
1201.27 Class appeals.
1201.28 Case suspension procedures.
1201.29 Dismissal without prejudice.

                 Parties, Representatives, and Witnesses

1201.31 Representatives.
1201.32 Witnesses; right to representation.
1201.33 Federal witnesses.
1201.34 Intervenors and amicus curiae.
1201.35 Substituting parties.
1201.36 Consolidating and joining appeals.
1201.37 Witness fees.

                                 Judges

1201.41 Judges.
1201.42 Disqualifying a judge.
1201.43 Sanctions.

                                Hearings

1201.51 Scheduling the hearing.
1201.52 Public hearings.
1201.53 Record of proceedings.
1201.55 Motions.
1201.56 Burden and degree of proof.
1201.57 Establishing jurisdiction in appeals not covered by Sec.  
          1201.56; burden and degree of proof; scope of review.
1201.58 Order of hearing.
1201.59 Closing the record.

                                Evidence

1201.61 Exclusion of evidence and testimony.
1201.63 Stipulations.
1201.64 Official notice.

                                Discovery

1201.71 Purpose of discovery.
1201.72 Explanation and scope of discovery.
1201.73 Discovery procedures.
1201.74 Orders for discovery.
1201.75 Taking depositions.

                                Subpoenas

1201.81 Requests for subpoenas.

[[Page 10]]

1201.82 Motions to quash subpoenas.
1201.83 Serving subpoenas.
1201.84 Proof of service.
1201.85 Enforcing subpoenas.

                          Interlocutory Appeals

1201.91 Explanation.
1201.92 Criteria for certifying interlocutory appeals.
1201.93 Procedures.

                         Ex Parte Communications

1201.101 Explanation and definitions.
1201.102 Prohibition on ex parte communications.
1201.103 Placing communications in the record; sanctions.

                             Final Decisions

1201.111 Initial decision by judge.
1201.112 Jurisdiction of judge.
1201.113 Finality of decision.

           Subpart C_Petitions for Review of Initial Decisions

1201.114 Petition and cross petition for review--content and procedure.
1201.115 Criteria for granting petition or cross petition for review.
1201.116 Compliance with orders for interim relief.
1201.117 Board decisions; procedures for review or reopening.
1201.118 Board reopening of final decisions.
1201.119 OPM petition for reconsideration.
1201.120 Judicial review.

          Subpart D_Procedures for Original Jurisdiction Cases

                                 General

1201.121 Scope of jurisdiction; application of subparts B, F, and H.

                  Special Counsel Disciplinary Actions

1201.122 Filing complaint; serving documents on parties.
1201.123 Contents of complaint.
1201.124 Rights; answer to complaint.
1201.125 Administrative law judge.
1201.126 Final decisions.
1201.127 Judicial review.

                   Special Counsel Corrective Actions

1201.128 Filing complaint; serving documents on parties.
1201.129 Contents of complaint.
1201.130 Rights; answer to complaint.
1201.131 Judge.
1201.132 Final decisions.
1201.133 Judicial review.

                   Special Counsel Requests for Stays

1201.134 Deciding official; filing stay request; serving documents on 
          parties.
1201.135 Contents of stay request.
1201.136 Action on stay request.

                Actions Against Administrative Law Judges

1201.137 Covered actions; filing complaint; serving documents on 
          parties.
1201.138 Contents of complaint.
1201.139 Rights; answer to complaint.
1201.140 Judge; requirement for finding of good cause.
1201.141 Judicial review.
1201.142 Actions filed by administrative law judges.

                Removal From the Senior Executive Service

1201.143 Right to hearing; filing complaint; serving documents on 
          parties.
1201.144 Hearing procedures; referring the record.
1201.145 No appeal.

                     Requests for Protective Orders

1201.146 Requests for protective orders by the Special Counsel.
1201.147 Requests for protective orders by persons other than the 
          Special Counsel.
1201.148 Enforcement of protective orders.

 Subpart E_Procedures for Cases Involving Allegations of Discrimination

1201.151 Scope and policy.
1201.152 Compliance with subpart B procedures.
1201.153 Contents of appeal.
1201.154 Time for filing appeal.
1201.155 Requests for review of arbitrators' decisions.
1201.156 Time for processing appeals involving allegations of 
          discrimination.
1201.157 Notice of right to judicial review.

                        Review of Board Decision

1201.161 Action by the Equal Employment Opportunity Commission; judicial 
          review.
1201.162 Board action on the Commission decision; judicial review.

                              Special Panel

1201.171 Referral of case to Special Panel.
1201.172 Organization of Special Panel; designation of members.
1201.173 Practices and procedures of Special Panel.
1201.174 Enforcing the Special Panel decision.
1201.175 Judicial review of cases decided under 5 U.S.C. 7702.

[[Page 11]]

           Subpart F_Enforcement of Final Decisions and Orders

1201.181 Authority and explanation.
1201.182 Petition for enforcement.
1201.183 Procedures for processing petitions for enforcement.

                      Subpart G_Savings Provisions

1201.191 Savings provisions.

Subpart H_Attorney Fees (Plus Costs, Expert Witness Fees, and Litigation 
Expenses, Where Applicable) and Damages (Consequential, Liquidated, and 
                              Compensatory)

1201.201 Statement of purpose.
1201.202 Authority for awards.
1201.203 Proceedings for attorney fees.
1201.204 Proceedings for consequential, liquidated, or compensatory 
          damages.
1201.205 Judicial review.

Appendix I to Part 1201 [Reserved]
Appendix II to Part 1201--Appropriate Regional or Field Office for 
          Filing Appeals
Appendix III to Part 1201 [Reserved]
Appendix IV to Part 1201--Sample Declaration Under 28 U.S.C. 1746

    Authority: 5 U.S.C. 1204, 1305, and 7701, and 38 U.S.C. 4331, unless 
otherwise noted.

    Source: 54 FR 53504, Dec. 29, 1989, unless otherwise noted.



                 Subpart A_Jurisdiction and Definitions



Sec.  1201.1  General.

    The Board has two types of jurisdiction, original and appellate.



Sec.  1201.2  Original jurisdiction.

    The Board's original jurisdiction includes the following cases:
    (a) Actions brought by the Special Counsel under 5 U.S.C. 1214, 
1215, and 1216;
    (b) Requests, by persons removed from the Senior Executive Service 
for performance deficiencies, for informal hearings; and
    (c) Actions taken against administrative law judges under 5 U.S.C. 
7521.

[54 FR 53504, Dec. 29, 1989, as amended at 62 FR 66814, Dec. 22, 1997]



Sec.  1201.3  Appellate jurisdiction.

    (a) Generally. The Board's appellate jurisdiction is limited to 
those matters over which it has been given jurisdiction by law, rule, or 
regulation. The Board's jurisdiction does not depend solely on the label 
or nature of the action or decision taken or made but may also depend on 
the type of Federal appointment the individual received, e.g., 
competitive or excepted service, whether an individual is preference 
eligible, and other factors. Accordingly, the laws and regulations cited 
below, which are the source of the Board's jurisdiction, should be 
consulted to determine not only the nature of the actions or decisions 
that are appealable, but also the limitations as to the types of 
employees, former employees, or applicants for employment who may assert 
them. Instances in which a law or regulation authorizes the Board to 
hear an appeal or claim include the following:
    (1) Adverse actions. Removals (terminations of employment after 
completion of probationary or other initial service period), reductions 
in grade or pay, suspension for more than 14 days, or furloughs for 30 
days or less for cause that will promote the efficiency of the service; 
an involuntary resignation or retirement is considered to be a removal 
(5 U.S.C. 7511-7514; 5 CFR part 752, subparts C and D);
    (2) Retirement appeals. Determinations affecting the rights or 
interests of an individual under the Federal retirement laws (5 U.S.C. 
8347(d)(1)-(2) and 8461(e)(1); and 5 U.S.C. 8331 note; 5 CFR parts 831, 
839, 842, 844, and 846);
    (3) Termination of probationary employment. Appealable issues are 
limited to a determination that the termination was motivated by 
partisan political reasons or marital status, and/or if the termination 
was based on a pre-appointment reason, whether the agency failed to take 
required procedures. These appeals are not generally available to 
employees in the excepted service. (38 U.S.C. 2014(b)(1)(D); 5 CFR 
315.806 & 315.908(b));
    (4) Restoration to employment following recovery from a work-related 
injury. Failure to restore, improper restoration of, or failure to 
return following a leave of absence following recovery from a 
compensable injury. (5 CFR 353.304);

[[Page 12]]

    (5) Performance-based actions under chapter 43. Reduction in grade 
or removal for unacceptable performance (5 U.S.C. 4303(e); 5 CFR part 
432);
    (6) Reduction in force. Separation, demotion, or furlough for more 
than 30 days, when the action was effected because of a reduction in 
force (5 CFR 351.901); Reduction-in-force action affecting a career or 
career candidate appointee in the Foreign Service (22 U.S.C. 4011);
    (7) Employment practices appeal. Employment practices administered 
by the Office of Personnel Management to examine and evaluate the 
qualifications of applicants for appointment in the competitive service 
(5 CFR 300.104);
    (8) Denial of within-grade pay increase. Reconsideration decision 
sustaining a negative determination of competence for a general schedule 
employee (5 U.S.C. 5335(c); 5 CFR 531.410);
    (9) Suitability action. Action based on suitability determinations, 
which relate to an individual's character or conduct that may have an 
impact on the integrity or efficiency of the service. Suitability 
actions include the cancellation of eligibility, removal, cancellation 
of reinstatement eligibility, and debarment. A non-selection or 
cancellation of eligibility for a specific position based on an 
objection to an eligible or a pass over of a preference eligible under 5 
CFR 332.406 is not a suitability action. (5 CFR 731.501, 731.203, 
731.101(a));
    (10) Various actions involving the Senior Executive Service. Removal 
or suspension for more than 14 days (5 U.S.C. 7543(d) and 5 CFR 
752.605); Reduction-in-force action affecting a career appointee (5 
U.S.C. 3595); Furlough of a career appointee (5 CFR 359.805); Removal or 
transfer of a Senior Executive Service employee of the Department of 
Veterans Affairs (38 U.S.C. 713 and 5 CFR part 1210); and
    (11) Miscellaneous restoration and reemployment matters.
    (i) Failure to afford reemployment priority rights pursuant to a 
Reemployment Priority List following separation by reduction in force (5 
CFR 330.214);
    (ii) Full recovery from a compensable injury after more than 1 year, 
because of the employment of another person (5 CFR 302.501);
    (iii) Failure to reinstate a former employee after service under the 
Foreign Assistance Act of 1961 (5 CFR 352.508);
    (iv) Failure to re-employ a former employee after movement between 
executive agencies during an emergency (5 CFR 352.209);
    (v) Failure to re-employ a former employee after detail or transfer 
to an international organization (5 CFR 352.313);
    (vi) Failure to re-employ a former employee after service under the 
Indian Self-Determination Act (5 CFR 352.707); or
    (vii) Failure to re-employ a former employee after service under the 
Taiwan Relations Act (5 CFR 352.807).
    (b)(1) Appeals under the Uniformed Services Employment and 
Reemployment Rights Act and the Veterans Employment Opportunities Act. 
Appeals filed under the Uniformed Services Employment and Reemployment 
Rights Act (Public Law 103-353), as amended, and the Veterans Employment 
Opportunities Act (Public Law 105-339) are governed by part 1208 of this 
title. The provisions of subparts A, B, C, and F of part 1201 apply to 
appeals governed by part 1208 unless other specific provisions are made 
in that part. The provisions of subpart H of this part regarding awards 
of attorney fees apply to appeals governed by part 1208 of this title.
    (2) Appeals involving an allegation that the action was based on 
appellant's whistleblowing or other protected activity. Appeals of 
actions appealable to the Board under any law, rule, or regulation, in 
which the appellant alleges that the action was taken because of the 
appellant's whistleblowing or other protected activity, are governed by 
part 1209 of this title. The provisions of subparts B, C, E, F, and G of 
part 1201 apply to appeals and stay requests governed by part 1209 
unless other specific provisions are made in that part. The provisions 
of subpart H of this part regarding awards of attorney fees, 
compensatory damages, and consequential damages under 5 U.S.C. 1221(g) 
apply to appeals governed by part 1209 of this chapter.

[[Page 13]]

    (c) Limitations on appellate jurisdiction, collective bargaining 
agreements, and election of procedures:
    (1) For an employee covered by a collective bargaining agreement 
under 5 U.S.C. 7121, the negotiated grievance procedures contained in 
the agreement are the exclusive procedures for resolving any action that 
could otherwise be appealed to the Board, with the following exceptions:
    (i) An appealable action involving discrimination under 5 U.S.C. 
2302(b)(1), reduction in grade or removal under 5 U.S.C. 4303, or 
adverse action under 5 U.S.C. 7512, may be raised under the Board's 
appellate procedures, or under the negotiated grievance procedures, but 
not under both;
    (ii) An appealable action involving a prohibited personnel practice 
other than discrimination under 5 U.S.C. 2302(b)(1) may be raised under 
not more than one of the following procedures:
    (A) The Board's appellate procedures;
    (B) The negotiated grievance procedures; or
    (C) The procedures for seeking corrective action from the Special 
Counsel under subchapters II and III of chapter 12 of title 5 of the 
United States Code.
    (iii) Except for actions involving discrimination under 5 U.S.C. 
2302(b)(1) or any other prohibited personnel practice, any appealable 
action that is excluded from the application of the negotiated grievance 
procedures may be raised only under the Board's appellate procedures.
    (2) Choice of procedure. When an employee has an option of pursuing 
an action under the Board's appeal procedures or under negotiated 
grievance procedures, the Board considers the choice between those 
procedures to have been made when the employee timely files an appeal 
with the Board or timely files a written grievance, whichever event 
occurs first. When an employee has the choice of pursuing an appealable 
action involving a prohibited personnel practice other than 
discrimination under 5 U.S.C. 2302(b)(1) in accordance with paragraph 
(c)(1)(ii) of this section, the Board considers the choice among those 
procedures to have been made when the employee timely files an appeal 
with the Board, timely files a written grievance under the negotiated 
grievance procedure, or seeks corrective action from the Special Counsel 
by making an allegation under 5 U.S.C. 1214(a)(1), whichever event 
occurs first.
    (3) Review of discrimination grievances. If an employee chooses the 
negotiated grievance procedure under paragraph (c)(2) of this section 
and alleges discrimination as described at 5 U.S.C. 2302(b)(1), then the 
employee, after having obtained a final decision under the negotiated 
grievance procedure, may ask the Board to review that final decision. 
The request must be filed with the Clerk of the Board in accordance with 
Sec.  1201.154.

[54 FR 53504, Dec. 29, 1989, as amended at 56 FR 41748, Aug. 23, 1991; 
59 FR 65235, Dec. 19, 1994; 61 FR 1, Jan. 2, 1996; 62 FR 17044, 17045, 
Apr. 9, 1997; 62 FR 66814, Dec. 22, 1997; 65 FR 5409, Feb. 4, 2000; 66 
FR 30635, June 7, 2001; 70 FR 30608, May 27, 2005; 72 FR 56884, Oct. 5, 
2007; 74 FR 9343, Mar. 4, 2009; 77 FR 62363, Oct. 12, 2012; 78 FR 39545, 
July 2, 2013; 79 FR 48943, Aug. 19, 2014]



Sec.  1201.4  General definitions.

    (a) Judge. Any person authorized by the Board to hold a hearing or 
to decide a case without a hearing, including the Board or any member of 
the Board, or an administrative law judge appointed under 5 U.S.C. 3105 
or other employee of the Board designated by the Board to hear such 
cases, except that in any case involving a removal from the service, the 
case shall be heard by the Board, an employee experienced in hearing 
appeals, or an administrative law judge.
    (b) Pleading. Written submission setting out claims, allegations, 
arguments, or evidence. Pleadings include briefs, motions, petitions, 
attachments, and responses.
    (c) Motion. A request that a judge take a particular action.
    (d) Appropriate regional or field office. The regional or field 
office of the Board that has jurisdiction over the area where the 
appellant's duty station was located when the agency took the action. 
Appeals of Office of Personnel Management reconsideration decisions 
concerning retirement benefits, and appeals of adverse suitability 
determinations under 5 CFR part 731, must be filed with the regional or 
field office that has jurisdiction over the area

[[Page 14]]

where the appellant lives. Appendix II of these regulations lists the 
geographic areas over which each of the Board's regional and field 
offices has jurisdiction. Appeals, however, may be transferred from one 
regional or field office to another.
    (e) Party. A person, an agency, or an intervenor, who is 
participating in a Board proceeding. This term applies to the Office of 
Personnel Management and to the Office of Special Counsel when those 
organizations are participating in a Board proceeding.
    (f) Appeal. A request for review of an agency action.
    (g) Petition for review. A request for review of an initial decision 
of a judge.
    (h) Day. Calendar day.
    (i) Service. The process of furnishing a copy of any pleading to 
Board officials, other parties, or both, by mail, by facsimile, by 
commercial or personal delivery, or by electronic filing (e-filing) in 
accordance with Sec.  1201.14.
    (j) Date of service. ``Date of service'' has the same meaning as 
``date of filing'' under paragraph (l) of this section.
    (k) Certificate of service. A document certifying that a party has 
served copies of pleadings on the other parties or, in the case of paper 
documents associated with electronic filings under paragraph (h) of 
Sec.  1201.14, on the MSPB.
    (l) Date of filing. A document that is filed with a Board office by 
personal delivery is considered filed on the date on which the Board 
office receives it. The date of filing by facsimile is the date of the 
facsimile. The date of filing by mail is determined by the postmark 
date; if no legible postmark date appears on the mailing, the submission 
is presumed to have been mailed five days (excluding days on which the 
Board is closed for business) before its receipt. The date of filing by 
commercial delivery is the date the document was delivered to the 
commercial delivery service. The date of filing by e-filing is the date 
of electronic submission.
    (m) Electronic filing (e-filing). Filing and receiving documents in 
electronic form in proceedings within the Board's appellate or original 
jurisdiction in accordance with Sec.  1201.14.
    (n) E-filer. A party or representative who has registered to engage 
in e-filing under paragraph (e) of Sec.  1201.14.
    (o) Grievance. A complaint by an employee or labor organization 
under a negotiated grievance procedure covered by 5 U.S.C. 7121.
    (p) Substantial evidence. The degree of relevant evidence that a 
reasonable person, considering the record as a whole, might accept as 
adequate to support a conclusion, even though other reasonable persons 
might disagree. This is a lower standard of proof than preponderance of 
the evidence.
    (q) Preponderance of the evidence. The degree of relevant evidence 
that a reasonable person, considering the record as a whole, would 
accept as sufficient to find that a contested fact is more likely to be 
true than untrue.
    (r) Harmful error. Error by the agency in the application of its 
procedures that is likely to have caused the agency to reach a 
conclusion different from the one it would have reached in the absence 
or cure of the error. The burden is upon the appellant to show that the 
error was harmful, i.e., that it caused substantial harm or prejudice to 
his or her rights.
    (s) Nonfrivolous allegation. A nonfrivolous allegation is an 
assertion that, if proven, could establish the matter at issue. An 
allegation generally will be considered nonfrivolous when, under oath or 
penalty of perjury, an individual makes an allegation that:
    (1) Is more than conclusory;
    (2) Is plausible on its face; and
    (3) Is material to the legal issues in the appeal.

[54 FR 53504, Dec. 29, 1989, as amended at 58 FR 36345, July 7, 1993; 59 
FR 65235, Dec. 19, 1994; 68 FR 59860, Oct. 20, 2003; 69 FR 57628, Sept. 
27, 2004; 73 FR 10129, Feb. 26, 2008; 77 FR 62364, Oct. 12, 2012; 80 FR 
4496, Jan. 28, 2015]



                Subpart B_Procedures for Appellate Cases

                                 General



Sec.  1201.11  Scope and policy.

    The regulations in this subpart apply to Board appellate proceedings 
except as otherwise provided in Sec.  1201.13. The regulations in this 
subpart apply also

[[Page 15]]

to appellate proceedings and stay requests covered by part 1209 unless 
other specific provisions are made in that part. These regulations also 
apply to original jurisdiction proceedings of the Board except as 
otherwise provided in subpart D. It is the Board's policy that these 
rules will be applied in a manner that expedites the processing of each 
case. It is the Board's policy that these rules will be applied in a 
manner that ensures the fair and efficient processing of each case.

[74 FR 9343, Mar. 4, 2009]



Sec.  1201.12  Revocation, amendment, or waiver of rules.

    The Board may revoke, amend, or waive any of these regulations. A 
judge may, for good cause shown, waive a Board regulation unless a 
statute requires application of the regulation. The judge must give 
notice of the waiver to all parties, but is not required to give the 
parties an opportunity to respond.



Sec.  1201.13  Appeals by Board employees.

    Appeals by Board employees will be filed with the Clerk of the Board 
and will be assigned to an administrative law judge for adjudication 
under this subchapter. The Board's policy is to insulate the 
adjudication of its own employees' appeals from agency involvement as 
much as possible. Accordingly, the Board will not disturb initial 
decisions in those cases unless the party shows that there has been 
harmful procedural irregularity in the proceedings before the 
administrative law judge or a clear error of law. In addition, the 
Board, as a matter of policy, will not rule on any interlocutory appeals 
or motions to disqualify the administrative law judge assigned to those 
cases until the initial decision has been issued.



Sec.  1201.14  Electronic filing procedures.

    (a) General. This section prescribes the rules and procedures by 
which parties and representatives to proceedings within the MSPB's 
appellate and original jurisdiction may file and receive documents in 
electronic form.
    (b) Matters subject to electronic filing. Subject to the 
registration requirement of paragraph (e) of this section, parties and 
representatives may use electronic filing (e-filing) to do any of the 
following:
    (1) File any pleading, including a new appeal, in any matter within 
the MSPB's appellate jurisdiction (Sec.  1201.3);
    (2) File any pleading in any matter within the MSPB's original 
jurisdiction (Sec.  1201.2);
    (3) File a petition for enforcement of a final MSPB decision (Sec.  
1201.182);
    (4) File a motion for an attorney fee award as a prevailing party 
(Sec.  1201.203);
    (5) File a motion for compensatory or consequential damages (Sec.  
1201.204);
    (6) Designate a representative, revoke such a designation, or change 
such a designation (Sec.  1201.31); or
    (7) Notify the MSPB of a change in contact information such as 
address (geographic or electronic mail) or telephone number.
    (c) Matters excluded from electronic filing. Electronic filing may 
not be used to:
    (1) File a request to hear a case as a class appeal or any 
opposition thereto (Sec.  1201.27);
    (2) Serve a subpoena (Sec.  1201.83);
    (3) File a pleading with the Special Panel (Sec.  1201.137);
    (4) File a pleading that contains Sensitive Security Information 
(SSI) (49 CFR parts 15 and 1520);
    (5) File a pleading that contains classified information (32 CFR 
part 2001); or
    (6) File a request to participate as an amicus curiae or file a 
brief as amicus curiae pursuant to Sec.  1201.34 of this part.
    (d) Internet is sole venue for electronic filing. Following the 
instructions at e-Appeal Online, the MSPB's e-Appeal site (https://e-
appeal.mspb.gov), is the only method allowed for filing electronic 
pleadings with the MSPB. The MSPB will not accept pleadings filed by 
electronic mail (e-mail).
    (e) Registration as an e-filer. (1) Registration as an e-filer 
constitutes consent to accept electronic service of pleadings filed by 
other registered e-filers and documents issued by the MSPB. Except when 
filing a new appeal within the MSPB's appellate jurisdiction (Sec.  
1201.3), no party or representative may file an electronic pleading with 
the MSPB unless he or she has registered with the MSPB as an e-filer.

[[Page 16]]

    (2) With the exception of a designation of a representative by a 
party who is an individual, the exclusive means for a party or 
representative to register as an e-filer during an MSPB proceeding is to 
follow the instructions at e-Appeal Online (https://e-appeal.mspb.gov).
    (3) When a party who is an individual is represented, the party and 
the representative can make separate determinations whether to register 
as an e-filer. For example, an appellant may file and receive pleadings 
and MSPB documents by non-electronic means, even though his or her 
representative has registered as an e-filer. When a party has more than 
one representative, however, all representatives must choose the same 
method of service.
    (4) A party or representative may withdraw his or her registration 
as an e-filer. Such withdrawal means that, effective upon the MSPB's 
receipt of this withdrawal, pleadings and MSPB documents will no longer 
be served on that person in electronic form. A withdrawal of 
registration as an e-filer may be filed at e-Appeal Online, in which 
case service is governed by paragraph (j) of this section, or by non-
electronic means, in which case service is governed by Sec.  1201.26(b).
    (5) Registration as an e-filer applies only to a single MSPB appeal 
or proceeding. If an appeal is dismissed without prejudice, however, and 
is later refiled, an election of e-filing status will remain in effect. 
An election of e-filing status will also remain in effect for purposes 
of filing a petition for enforcement under Subpart F of this part, or 
filing a motion for an attorney fee award or compensatory or 
consequential damages under Subpart H of this Part.
    (6) Each e-filer must notify the MSPB and other participants of any 
change in his or her e-mail address. When done via e-Appeal Online, such 
notification is done by selecting the ``Pleading'' option.
    (f) e-Filing not mandatory for e-filers. A party or representative 
who has registered as an e-filer may file any pleading by non-electronic 
means, i.e., via postal mail, fax, or personal or commercial delivery.
    (g) Form of electronic pleadings--(1) Options for e-filing. An 
appellant or representative using e-Appeal Online to file a new appeal 
within the MSPB's appellate jurisdiction (Sec.  1201.3) must complete 
the structured interview at that site (https://e-appeal.mspb.gov). For 
all other pleadings, the e-filer has the option of uploading an 
electronic file or entering the text of the pleading online. Regardless 
of the means of filing a particular pleading, the e-filer will be 
allowed to submit supporting documentation such as attachments, in 
either electronic or paper form, as described in paragraphs (g)(2), 
(g)(3), and (h) of this section.
    (2) Electronic formats allowed. The MSPB will accept numerous 
electronic formats, including word-processing and spreadsheet formats, 
Portable Document Format (PDF), and image files (files created by 
scanning). A list of formats allowed can be found at e-Appeal Online. 
All electronic documents must be formatted so that they will print on 
standard 8\1/2\ inch by 11 inch paper.
    (3) Requirements for pleadings with 3 or more electronic 
attachments. An e-filer who uploads 3 or more supporting documents, in 
addition to the document that constitutes the primary pleading, must 
identify each attachment, either by filling out the table for such 
attachments at e-Appeal Online, or by uploading the supporting documents 
in the form of one or more PDF files in which each attachment is 
bookmarked. Each attachment must be designated with a brief descriptive 
label, which will include exhibit numbers or letters where appropriate 
or required, e.g., ``Exh. 4b, Decision Notice.''
    (h) Hybrid pleadings that include both electronic and paper 
documents. An e-filer may file a hybrid pleading in which part of the 
pleading is submitted electronically, and part of the pleading consists 
of one or more paper documents filed by non-electronic means. All 
components of a hybrid pleading are subject to applicable time limits. 
If one or more parts of a hybrid pleading are untimely filed, the judge 
or the Clerk may reject the untimely part or parts while accepting 
timely filed parts of the same pleading.

[[Page 17]]

    (i) Repository at e-Appeal Online. All notices, orders, decisions, 
and other documents issued by the MSPB, as well as all pleadings filed 
via e-Appeal Online, will be made available to parties and their 
representatives for viewing and downloading at the Repository at e-
Appeal Online. In addition, most pleadings filed at the petition for 
review stage of adjudication, and some pleadings filed at the regional 
office level, will be available at the Repository. Also available at the 
Repository will be an electronic ``docket sheet'' listing all documents 
issued by the MSPB to the parties, as well as all pleadings filed by the 
parties, including those pleadings that are not available for viewing 
and downloading in electronic form. Access to appeal documents at the 
Repository will be limited to the parties and representatives of the 
appeals in which they were filed.
    (j) Service of electronic pleadings and MSPB documents. (1) When 
MSPB documents are issued, e-mail messages will be sent to e-filers that 
notify them of the issuance and that contain links to the Repository 
where the documents can be viewed and downloaded. Paper copies of these 
documents will not ordinarily be served on e-filers. Pleadings submitted 
via e-Appeal Online will be available to parties and representatives at 
the e-Appeal Online Repository, and the MSPB will send e-mail messages 
to other e-filers notifying them of each pleading, with a link to the 
Repository. When using e-Appeal Online to file a pleading, e-filers will 
be notified of all documents that must be served by non-electronic 
means, and they must certify that they will serve all such documents no 
later than the first business day after the electronic submission.
    (2) Delivery of e-mail can encounter a number of failure points. If 
the MSPB is advised of non-delivery, it will attempt to redeliver and, 
if that is unsuccessful, will deliver by postal mail or other means. E-
filers are responsible for ensuring that e-mail from @mspb.gov is not 
blocked by filters.
    (3) E-filers are responsible for monitoring case activity at the 
Repository at e-Appeal Online to ensure that they have received all 
case-related documents.
    (k) Documents requiring a signature. Electronic documents filed by a 
party who has registered as an e-filer pursuant to this section shall be 
deemed to be signed for purposes of any regulation in part 1201, 1203, 
1208, or 1209 of this chapter that requires a signature.
    (l) Affidavits and declarations made under penalty of perjury. 
Registered e-filers may submit electronic pleadings in the form of 
declarations made under penalty of perjury under 28 U.S.C. 1746, as 
described in Appendix IV to this part. If the declarant is someone other 
than the e-filer, a physically signed affidavit or declaration should be 
uploaded as an image file, or submitted separately as a non-electronic 
document under paragraph (h) of this section.
    (m) Date electronic documents are filed and served. (1) As provided 
in Sec.  1201.4(l) of this part, the date of filing for pleadings filed 
via e-Appeal Online is the date of electronic submission. All pleadings 
filed via e-Appeal Online are time stamped with Eastern Time, but the 
timeliness of a pleading will be determined based on the time zone from 
which the pleading was submitted. For example, a pleading filed at 11 
p.m. Pacific Time on August 20 will be stamped by e-Appeal Online as 
being filed at 2 a.m. Eastern Time on August 21. However, if the 
pleading was required to be filed with the Washington Regional Office 
(in the Eastern Time Zone) on August 20, it would be considered timely, 
as it was submitted prior to midnight Pacific Time on August 20.
    (2) MSPB documents served electronically on registered e-filers are 
deemed received on the date of electronic submission.
    (n) Authority of a judge or the Clerk to regulate e-filing. (1) In 
the event that the MSPB or any party encounters difficulties filing, 
serving, or receiving electronic documents, the judge or the Clerk of 
the Board may order one or more parties to cease filing pleadings by e-
filing, cease serving documents in electronic form, or take both these 
actions. In such instances, filing and service shall be undertaken in 
accordance with Sec.  1201.26. The authority to order the cessation of 
the use of electronic filing may be for a particular submission, for a 
particular time

[[Page 18]]

frame, or for the duration of the pendency of a case.
    (2) A judge or the Clerk of the Board may require that any document 
filed electronically be submitted in non-electronic form and bear the 
written signature of the submitter. A party receiving such an order from 
a judge or the Clerk of the Board shall, within 5 calendar days, serve 
on the judge or Clerk of the Board by postal mail, by fax, or by 
commercial or personal delivery a signed, non-electronic copy of the 
document.
    (o) MSPB reserves the right to revert to traditional methods of 
service. The MSPB may serve documents via traditional means--postal 
mail, fax, personal or commercial delivery--at its discretion. Parties 
and their representatives are responsible for ensuring that the MSPB 
always has their current postal mailing addresses, even when they have 
registered as e-filers.
    (p)(1) Except as provided in paragraphs (p)(2) and (3) of this 
section, all pleadings (including the initial appeal) except those 
containing classified information or Sensitive Security Information 
filed with the Washington Regional Office (WRO) and the Denver Field 
Office (DEFO) by agencies or attorneys must be e-filed. Agencies and 
attorneys in proceedings in the WRO and the DEFO must register as e-
filers pursuant to paragraph (e) of this section.
    (2) Agencies or attorneys who believe that e-filing would create an 
undue burden on their operations may request an exemption from the 
administrative judge for a specific appeal and/or pleading. Such a 
request shall include a specific and detailed explanation why e-filing 
would create an undue burden.
    (3) Except in unusual circumstances, exemptions granted under this 
section shall apply only to pleadings that include scanned material. All 
other pleadings except those containing classified information or 
Sensitive Security Information must be e-filed. The administrative judge 
may periodically revisit the need for an exemption granted under this 
subsection, and revoke the exemption as appropriate.

[73 FR 10129, Feb. 26, 2008, as amended at 76 FR 63538, Oct. 13, 2011; 
77 FR 62364, Oct. 12, 2012]

                   Appeal of Agency Action; Pleadings



Sec.  1201.21  Notice of appeal rights.

    When an agency issues a decision notice to an employee on a matter 
that is appealable to the Board, the agency must provide the employee 
with the following:
    (a) Notice of the time limits for appealing to the Board, the 
requirements of Sec.  1201.22(c), and the address of the appropriate 
Board office for filing the appeal;
    (b) A copy, or access to a copy, of the Board's regulations;
    (c) A copy, or access to a copy, of the MSPB appeal form available 
at the Board's Web site (http://www.mspb.gov), and
    (d) Notice of any right the employee has to file a grievance or seek 
corrective action under subchapters II and III of 5 U.S.C. chapter 12, 
including:
    (1) Whether the election of any applicable grievance procedure will 
result in waiver of the employee's right to file an appeal with the 
Board;
    (2) Whether both an appeal to the Board and a grievance may be filed 
on the same matter and, if so, the circumstances under which proceeding 
with one will preclude proceeding with the other, and specific notice 
that filing a grievance will not extend the time limit for filing an 
appeal with the Board;
    (3) Whether there is any right to request Board review of a final 
decision on a grievance in accordance with Sec.  1201.155 of this part; 
and
    (4) The effect of any election under 5 U.S.C. 7121(g), including the 
effect that seeking corrective action under subchapters II and III of 5 
U.S.C. chapter 12 will have on the employee's appeal rights before the 
Board.
    (e) Notice of any right the employee has to file a complaint with 
the Equal Employment Opportunity Commission or to grieve allegations of 
unlawful discrimination, consistent with the provisions of 5 U.S.C. 
7121(d) and 29 CFR 1614.301 and 1614.302.
    (f) The name or title and contact information for the agency 
official to whom the Board should send the Acknowledgment Order and copy 
of the appeal in the event the employee files

[[Page 19]]

an appeal with the Board. Contact information should include the 
official's mailing address, email address, telephone and fax numbers.

[74 FR 9343, Mar. 4, 2009, as amended at 77 FR 62364, Oct. 12, 2012; 78 
FR 21518, Apr. 11, 2013]



Sec.  1201.22  Filing an appeal and responses to appeals.

    (a) Place of filing. Appeals, and responses to those appeals, must 
be filed with the appropriate Board regional or field office. See Sec.  
1201.4(d) of this part.
    (b) Time of filing. (1) Except as provided in paragraph (b)(2) of 
this section, an appeal must be filed no later than 30 days after the 
effective date, if any, of the action being appealed, or 30 days after 
the date of the appellant's receipt of the agency's decision, whichever 
is later. Where an appellant and an agency mutually agree in writing to 
attempt to resolve their dispute through an alternative dispute 
resolution process prior to the timely filing of an appeal, however, the 
time limit for filing the appeal is extended by an additional 30 days--
for a total of 60 days. A response to an appeal must be filed within 20 
days of the date of the Board's acknowledgment order. The time for 
filing a submission under this section is computed in accordance with 
Sec.  1201.23 of this part.
    (2) The time limit prescribed by paragraph (b)(1) of this section 
for filing an appeal does not apply where a law or regulation 
establishes a different time limit or where there is no applicable time 
limit. No time limit applies to appeals under the Uniformed Services 
Employment and Reemployment Rights Act (Pub. L. 103-353), as amended; 
see part 1208 of this title. See part 1208 of this title for the 
statutory filing time limits applicable to appeals under the Veterans 
Employment Opportunities Act (Pub. L. 105-339). See part 1209 of this 
title for the statutory filing time limits applicable to whistleblower 
appeals and stay requests.
    (3) An appellant is responsible for keeping the agency informed of 
his or her current home address for purposes of receiving the agency's 
decision, and correspondence which is properly addressed and sent to the 
appellant's address via postal or commercial delivery is presumed to 
have been duly delivered to the addressee. While such a presumption may 
be overcome under the circumstances of a particular case, an appellant 
may not avoid service of a properly addressed and mailed decision by 
intentional or negligent conduct which frustrates actual service. The 
appellant may also be deemed to have received the agency's decision if 
it was received by a designated representative or a person of suitable 
age and discretion residing with the appellant. The following examples 
illustrate the application of this rule:

    Example A: An appellant who fails to pick up mail delivered to his 
or her post office box may be deemed to have received the agency 
decision.
    Example B: An appellant who did not receive his or her mail while in 
the hospital may overcome the presumption of actual receipt.
    Example C: An appellant may be deemed to have received an agency 
decision received by his or her roommate.

    (c) Timeliness of appeals. If a party does not submit an appeal 
within the time set by statute, regulation, or order of a judge, it will 
be dismissed as untimely filed unless a good reason for the delay is 
shown. The judge will provide the party an opportunity to show why the 
appeal should not be dismissed as untimely.
    (d) Method of filing an appeal. Filing of an appeal must be made 
with the appropriate Board office by commercial or personal delivery, by 
facsimile, by mail, or by electronic filing under Sec.  1201.14.
    (e) Filing a response. Filing of a response must be made with the 
appropriate Board office by commercial or personal delivery, by 
facsimile, by mail, or by electronic filing under Sec.  1201.14.

[54 FR 53504, Dec. 29, 1989]

    Editorial Note: For Federal Register citations affecting Sec.  
1201.22, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



Sec.  1201.23  Computation of time.

    In computing the number of days allowed for complying with any 
deadline, the first day counted is the day after the event from which 
the time period

[[Page 20]]

begins to run. If the date that ordinarily would be the last day for 
filing falls on a Saturday, Sunday, or Federal holiday, the filing 
period will include the first workday after that date. Unless a 
different deadline is specified by the Board or its designee, 5 days are 
added to a party's deadline for responding to a document served on the 
party by mail.

    Example 1: If an employee receives a decision notice that is 
effective on July 1, the 30-day period for filing an appeal starts to 
run on July 2. The filing ordinarily would be timely only if it is made 
by July 31. If July 31 is a Saturday, however, the last day for filing 
would be Monday, August 2.
    Example 2: The judge orders the appellant to file a response to a 
jurisdictional order no later than October 15, 2012, and that the 
agency's response is due 10 days after the filing of the appellant's 
pleading. If the appellant serves the agency with a pleading via regular 
mail on October 15, the agency's deadline for filing a response will be 
October 30, not October 25.

[77 FR 62364, Oct. 12, 2012]



Sec.  1201.24  Content of an appeal; right to hearing.

    (a) Content. Only an appellant, his or her designated 
representative, or a party properly substituted under Sec.  1201.35 may 
file an appeal. Appeals may be in any format, including letter form. An 
appeal may be filed in electronic form provided that the requirements of 
Sec.  1201.14 have been satisfied. All appeals must contain the 
following:
    (1) The name, address, and telephone number of the appellant, and 
the name and address of the agency that took the action;
    (2) A description of the action the agency took and its effective 
date;
    (3) A request for hearing if the appellant wants one;
    (4) A statement of the reasons why the appellant believes the agency 
action is wrong;
    (5) A statement of the action the appellant would like the judge to 
order;
    (6) The name, address, and telephone number of the appellant's 
representative, if the appellant has a representative;
    (7) Where applicable, a copy of the notice of proposed action, the 
agency decision being appealed and, if available, the SF-50 or similar 
notice of personnel action. No other attachments should be included with 
the appeal, as the agency will be submitting the documents required by 
1201.25 of this part, and there will be several opportunities to submit 
evidence and argument after the appeal is filed. An appellant should not 
miss the deadline for filing merely because he or she does not currently 
have all of the documents specified in this section.
    (8) A statement telling whether the appellant or anyone acting on 
his or her behalf has filed a grievance or a formal discrimination 
complaint with any agency regarding this matter; and
    (9) The signature of the appellant or, if the appellant has a 
representative, of the representative. If the appeal is electronically 
filed, compliance with Sec.  1201.14 and the directions at the Board's 
e-Appeal site (https://e-appeal.mspb.gov) satisfy the signature 
requirement.
    (b) An appellant may raise a claim or defense not included in the 
appeal at any time before the end of the conference(s) held to define 
the issues in the case. An appellant may not raise a new claim or 
defense after that time, except for good cause shown. However, a claim 
or defense not included in the appeal may be excluded if a party shows 
that including it would result in undue prejudice.
    (c) Use of Board form or electronic filing. An appellant may comply 
with paragraph (a) of this section, and with Sec.  1201.31, by 
completing MSPB Form 185, or by completing all requests for information 
marked as required at the e-Appeal site (https://e-appeal.mspb.gov). 
MSPB Form 185 can be accessed at the Board's Web site (http://
www.mspb.gov).
    (d) Right to hearing. An appellant generally has a right to a 
hearing on the merits if the appeal has been timely filed and the Board 
has jurisdiction over the appeal.
    (e) Timely request. The appellant must submit any request for a 
hearing with the appeal, or within any other time period the judge sets 
for that purpose. If the appellant does not make a timely request for a 
hearing, the right to a hearing is waived.

[54 FR 53504, Dec. 29, 1989, as amended at 68 FR 59862, Oct. 20, 2003; 
69 FR 57629, Sept. 27, 2004; 77 FR 62364, Oct. 12, 2012]

[[Page 21]]



Sec.  1201.25  Content of agency response.

    The agency response to an appeal must contain the following:
    (a) The name of the appellant and of the agency whose action the 
appellant is appealing;
    (b) A statement identifying the agency action taken against the 
appellant and stating the reasons for taking the action;
    (c) All documents contained in the agency record of the action;
    (d) Designation of and signature by the authorized agency 
representative; and
    (e) Any other documents or responses requested by the Board.



Sec.  1201.26  Number of pleadings, service, and response.

    (a) Number. The appellant must file two copies of both the appeal 
and all attachments with the appropriate Board office, unless the 
appellant files an appeal in electronic form under Sec.  1201.14.
    (b) Service--(1) Service by the Board. The appropriate office of the 
Board will mail a copy of the appeal to each party to the proceeding 
other than the appellant. It will attach to each copy a service list, 
consisting of a list of the names and addresses of the parties to the 
proceeding or their designated representatives.
    (2) Service by the parties. The parties must serve on each other one 
copy of each pleading, as defined by Sec.  1201.4(b), and all documents 
submitted with it, except for the appeal. They may do so by mail, by 
facsimile, by commercial or personal delivery, or by electronic filing 
in accordance with Sec.  1201.14. Documents and pleadings must be served 
upon each party and each representative. A certificate of service 
stating how and when service was made must accompany each pleading. The 
parties must notify the appropriate Board office and one another, in 
writing, of any changes in the names, or addresses on the service list.
    (c) Paper size. Pleadings and attachments must be filed on 8\1/2\ by 
11-inch paper, except for good cause shown. This requirement enables the 
Board to comply with standards established for U.S. courts. All 
electronic documents must be formatted so that they will print on 8\1/2\ 
by 11-inch paper.

[54 FR 53504, Dec. 29, 1989; 55 FR 548, Jan. 5, 1990, as amended at 58 
FR 36345, July 7, 1993; 68 FR 59862, Oct. 20, 2003; 69 FR 57629, Sept. 
27, 2004]



Sec.  1201.27  Class appeals.

    (a) Appeal. One or more employees may file an appeal as 
representatives of a class of employees. The judge will hear the case as 
a class appeal if he or she finds that a class appeal is the fairest and 
most efficient way to adjudicate the appeal and that the representative 
of the parties will adequately protect the interests of all parties. 
When a class appeal is filed, the time from the filing date until the 
judge issues his or her decision under paragraph (b) of this section is 
not counted in computing the time limit for individual members of the 
potential class to file individual appeals.
    (b) Procedure. The judge will consider the appellant's request and 
any opposition to that request, and will issue an order within 30 days 
after the appeal is filed stating whether the appeal is to be heard as a 
class appeal. If the judge denies the request, the appellants affected 
by the decision may file individual appeals within 30 days after the 
date of receipt of the decision denying the request to be heard as a 
class appeal. Each individual appellant is responsible for either filing 
an individual appeal within the original time limit, or keeping informed 
of the status of a class appeal and, if the class appeal is denied, 
filing an individual appeal within the additional 35-day period.
    (c) Standards. In determining whether it is appropriate to treat an 
appeal as a class action, the judge will be guided but not controlled by 
the applicable provisions of the Federal Rules of Civil Procedure.
    (d) Electronic filing. A request to hear a case as a class appeal 
and any opposition thereto may not be filed in electronic form. 
Subsequent pleadings may be filed and served in electronic form, 
provided that the requirements of Sec.  1201.14 are satisfied.

[54 FR 53504, Dec. 29, 1989, as amended at 59 FR 31109, June 17, 1994; 
62 FR 59992, Nov. 6, 1997; 68 FR 59862, Oct. 20, 2003; 69 FR 57630, 
Sept. 27, 2004]

[[Page 22]]



Sec.  1201.28  Case suspension procedures.

    (a) Suspension period. The judge may issue an order suspending the 
processing of an appeal for up to 30 days. The judge may grant a second 
order suspending the processing of an appeal for up to an additional 30 
days.
    (b) Early termination of suspension period. The administrative judge 
may terminate the suspension period upon joint request of the parties or 
where the parties request the judge's assistance and the judge's 
involvement is likely to be extensive.
    (c) Termination of suspension period. If the final day of any 
suspension period falls on a day on which the Board is closed for 
business, adjudication shall resume as of the first business day 
following the expiration of the period.
    (d) Mediation. Whenever an appeal is accepted into the Board's 
Mediation Appeals Program (MAP), the processing of the appeal and all 
deadlines are suspended until the mediator returns the case to the 
judge. This provision does not apply where the parties enter into other 
forms of alternative dispute resolution.

[77 FR 62365, Oct. 12, 2012]



Sec.  1201.29  Dismissal without prejudice.

    (a) In general. Dismissal without prejudice is a procedural option 
that allows for the dismissal and subsequent refiling of an appeal.
    (b) Procedure. Dismissal without prejudice may be granted on the 
judge's own motion or upon request by either party. The decision whether 
to dismiss an appeal without prejudice is committed to the sound 
discretion of the judge, and may be granted when the interests of 
fairness, due process, and administrative efficiency outweigh any 
prejudice to either party.
    (c) Refiling. Except in certain USERRA appeals under Part 1208 
involving the use of military leave, a decision dismissing an appeal 
without prejudice will include a date certain by which the appeal must 
be refiled. The judge will determine whether the appeal must be refiled 
by the appellant or whether it will be automatically refiled by the 
judge as of a date certain. When a dismissal without prejudice is issued 
over the objection of the appellant, the appeal will be automatically 
refiled as of a date certain.
    (d) Waiver. When a dismissed appeal must be refiled by the 
appellant, requests for waiver of a late filing based upon good cause 
will be liberally construed.

[77 FR 62365, Oct. 12, 2012]

                 Parties, Representatives, and Witnesses



Sec.  1201.31  Representatives.

    (a) Procedure. A party to an appeal may be represented in any matter 
related to the appeal. Parties may designate a representative, revoke 
such a designation, and change such a designation in a signed 
submission, submitted as a pleading.
    (b) A party may choose any representative as long as that person is 
willing and available to serve. The other party or parties may challenge 
the designation, however, on the ground that it involves a conflict of 
interest or a conflict of position. Any party who challenges the 
designation must do so by filing a motion with the judge within 15 days 
after the date of service of the notice of designation or 15 days after 
a party becomes aware of the conflict. The judge will rule on the motion 
before considering the merits of the appeal. These procedures apply 
equally to each designation of representative, regardless of whether the 
representative was the first one designated by a party or a subsequently 
designated representative. If a representative is disqualified, the 
judge will give the party whose representative was disqualified a 
reasonable time to obtain another one.
    (c) The judge, on his or her own motion, may disqualify a party's 
representative on the grounds described in paragraph (b) of this 
section.
    (d) As set forth in paragraphs (d) and (e) of Sec.  1201.43 of this 
part, a judge may exclude a representative from all or any portion of 
the proceeding before him or her for contumacious conduct

[[Page 23]]

or conduct prejudicial to the administration of justice.

[54 FR 53504, Dec. 29, 1989, as amended at 62 FR 62689, Nov. 25, 1997; 
62 FR 66815, Dec. 22, 1997; 63 FR 35500, June 30, 1998; 65 FR 5409, Feb. 
4, 2000; 68 FR 59862, Oct. 20, 2003; 69 FR 57630, Sept. 27, 2004; 77 FR 
62365, Oct. 12, 2012]



Sec.  1201.32  Witnesses; right to representation.

    Witnesses have the right to be represented when testifying. The 
representative of a nonparty witness has no right to examine the witness 
at the hearing or otherwise participate in the development of testimony.



Sec.  1201.33  Federal witnesses.

    (a) Every Federal agency or corporation, including nonparties, must 
make its employees or personnel available to furnish sworn statements or 
to appear at a deposition or hearing when ordered by the judge to do so. 
When providing those statements or appearing at a deposition or at the 
hearing, Federal employee witnesses will be in official duty status 
(i.e., entitled to pay and benefits including travel and per diem, where 
appropriate). When a desired witness is employed by an agency who is not 
a party to the Board proceeding, the requesting party may avail itself 
of the provisions of sections 1201.81 to 1201.85 of this part regarding 
subpoenas to ensure the attendance of the witness. In addition, the 
Board and the parties will implement this provision, to the maximum 
extent possible, to avoid conflict with other regulations governing the 
production of Federal employees in matters in litigation.
    (b) A Federal employee who is denied the official time required by 
paragraph (a) of this section may file a written request that the judge 
order the employing agency to provide such official time. The judge will 
act on such a request promptly and, where warranted, will order the 
agency to comply with the requirements of paragraph (a) of this section.
    (c) An order obtained under paragraph (b) of this section may be 
enforced as provided under subpart F of this part.

[54 FR 53504, Dec. 29, 1989, as amended at 62 FR 48935, Sept. 18, 1997; 
77 FR 62365, Oct. 12, 2012]



Sec.  1201.34  Intervenors and amicus curiae.

    (a) Explanation of Intervention. Intervenors are organizations or 
persons who want to participate in a proceeding because they believe the 
proceeding, or its outcome, may affect their rights or duties. 
Intervenors as a ``matter of right'' are those parties who have a 
statutory right to participate. ``Permissive'' intervenors are those 
parties who may be permitted to participate if the proceeding will 
affect them directly and if intervention is otherwise appropriate under 
law. A request to intervene may be made by motion filed with the judge.
    (b) Intervenors as a matter of right. (1) The Director of the Office 
of Personnel Management may intervene as a matter of right under 5 
U.S.C. 7701(d)(1). The motion to intervene must be filed at the earliest 
practicable time.
    (2)(i) Except as provided in paragraph (b)(2)(ii) of this section, 
the Special Counsel may intervene as a matter of right under 5 U.S.C. 
1212(c). The motion to intervene must be filed at the earliest 
practicable time.
    (ii) The Special Counsel may not intervene in an action brought by 
an individual under 5 U.S.C. 1221, or in an appeal brought by an 
individual under 5 U.S.C. 7701, without the consent of that individual. 
The Special Counsel must present evidence that the individual has 
consented to the intervention at the time the motion to intervene is 
filed.
    (c) Permissive intervenors. (1) Any person, organization or agency 
may, by motion, ask the judge for permission to intervene. The motion 
must explain the reason why the person, organization or agency should be 
permitted to intervene.
    (2) A motion for permission to intervene will be granted where the 
requester will be affected directly by the outcome of the proceeding. 
Any person alleged to have committed a prohibited personnel practice 
under 5 U.S.C. 2302(b) may request permission to intervene. A judge's 
denial of a motion for permissive intervention may be appealed to the 
Board under Sec.  1201.91 of this part.

[[Page 24]]

    (d) Role of intervenors. Intervenors have the same rights and duties 
as parties, with the following two exceptions:
    (1) Intervenors do not have an independent right to a hearing; and
    (2) Permissive intervenors may participate only on the issues 
affecting them. The judge is responsible for determining the issues on 
which permissive intervenors may participate.
    (e) Amicus curiae. (1) An amicus curiae is a person or organization 
who, although not a party to an appeal, gives advice or suggestions by 
filing a brief with the judge or the Board regarding an appeal. Any 
person or organization, including those who do not qualify as 
intervenors, may request permission to file an amicus brief. The Board 
may solicit amicus briefs on its own motion.
    (2) A request to file an amicus curiae brief must include a 
statement of the person's or organization's interest in the appeal and 
how the brief will be relevant to the issues involved.
    (3) The request may be granted, in the discretion of the judge or 
the Board, if the person or organization has a legitimate interest in 
the proceedings, and such participation will not unduly delay the 
outcome and may contribute materially to the proper disposition thereof.
    (4) The amicus curiae shall submit its brief within the time limits 
set by the judge or the Board and must comply with any further orders by 
the judge or the Board.
    (5) An amicus curiae is not a party to the proceeding and may not 
participate in any way in the conduct of the hearing, including the 
presentation of evidence or the examination of witnesses. The Board, in 
its discretion, may invite an amicus curiae to participate in oral 
argument in proceedings in which oral argument is scheduled.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62365, Oct. 12, 2012]



Sec.  1201.35  Substituting parties.

    (a) If an appellant dies or is otherwise unable to pursue the 
appeal, the processing of the appeal will only be completed upon 
substitution of a proper party. Substitution will not be permitted where 
the interests of the appellant have terminated because of the 
appellant's death or other disability.
    (b) The representative or proper party must file a motion for 
substitution within 90 days after the death or other disabling event, 
except for good cause shown.
    (c) In the absence of a timely substitution of a party, the 
processing of the appeal may continue if the interests of the proper 
party will not be prejudiced.



Sec.  1201.36  Consolidating and joining appeals.

    (a) Explanation. (1) Consolidation occurs when the appeals of two or 
more parties are united for consideration because they contain identical 
or similar issues. For example, individual appeals rising from a single 
reduction in force might be consolidated.
    (2) Joinder occurs when one person has filed two or more appeals and 
they are united for consideration. For example, a judge might join an 
appeal challenging a 30-day suspension with a pending appeal challenging 
a subsequent removal if the same appellant filed both appeals.
    (b) Action by judge. A judge may consolidate or join cases on his or 
her own motion or on the motion of a party if doing so would:
    (1) Expedite processing of the cases; and
    (2) Not adversely affect the interests of the parties.
    (c) Any objection to a motion for consolidation or joinder must be 
filed within 10 days of the date of service of the motion.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62365, Oct. 12, 2012]



Sec.  1201.37  Witness fees.

    (a) Federal employees. Employees of a Federal agency or corporation 
testifying in any Board proceeding or making a statement for the record 
will be in official duty status and will not receive witness fees.
    (b) Other witnesses. Other witnesses (whether appearing voluntarily 
or under subpoena) shall be paid the same fee and mileage allowances 
which are paid subpoenaed witnesses in the courts of the United States.

[[Page 25]]

    (c) Payment of witness fees and travel costs. The party requesting 
the presence of a witness must pay that witness' fees. Those fees must 
be paid or offered to the witness at the time the subpoena is served, 
or, if the witness appears voluntarily, at the time of appearance. A 
Federal agency or corporation is not required to pay or offer witness 
fees in advance.
    (d) A witness who is denied the witness fees and travel costs 
required by paragraphs (b) and (c) of this section may file a written 
request that the judge order the party who requested the presence of the 
witness to provide such fees and travel costs. The judge will act on 
such a request promptly and, where warranted, will order the party to 
comply with the requirements of paragraphs (b) and (c) of this section.
    (e) An order obtained under paragraph (d) of this section may be 
enforced as provided under subpart F of this part.

[54 FR 53504, Dec. 29, 1989, as amended at 59 FR 31109, June 17, 1994; 
59 FR 65235, Dec. 19, 1994; 62 FR 17045, Apr. 9, 1997; 73 FR 6833, Feb. 
6, 2008]

                                 Judges



Sec.  1201.41  Judges.

    (a) Exercise of authority. Judges may exercise authority as provided 
in paragraphs (b) and (c) of this section on their own motion or on the 
motion of a party, as appropriate.
    (b) Authority. Judges will conduct fair and impartial hearings and 
will issue timely and clear decisions based on statutes and legal 
precedents. They will have all powers necessary to that end unless those 
powers are otherwise limited by law. Judges' powers include, but are not 
limited to, the authority to:
    (1) Administer oaths and affirmations;
    (2) Issue subpoenas under Sec.  1201.81 of this part;
    (3) Rule on offers of proof and receive relevant evidence;
    (4) Rule on discovery motions under Sec.  1201.73 of this part;
    (5) After notice to the parties, order a hearing on his or her own 
initiative if the judge determines that a hearing is necessary:
    (i) To resolve an important issue of credibility;
    (ii) To ensure that the record on significant issues is fully 
developed; or
    (iii) To otherwise ensure a fair and just adjudication of the case;
    (6) Convene a hearing as appropriate, regulate the course of the 
hearing, maintain decorum, and exclude any disruptive persons from the 
hearing;
    (7) Exclude any person from all or any part of the proceeding before 
him or her as provided under Sec.  1201.31(d) of this part;
    (8) Rule on all motions, witness and exhibit lists, and proposed 
findings;
    (9) Require the parties to file memoranda of law and to present oral 
argument with respect to any question of law;
    (10) Order the production of evidence and the appearance of 
witnesses whose testimony would be relevant, material, and 
nonrepetitious;
    (11) Impose sanctions as provided under Sec.  1201.43 of this part;
    (12) Hold prehearing conferences for the settlement and 
simplification of issues;
    (13) Require that all persons who can be identified from the record 
as being clearly and directly affected by a pending retirement-related 
case be notified of the appeal and of their right to request 
intervention so that their interests can be considered in the 
adjudication;
    (14) Issue any order that may be necessary to protect a witness or 
other individual from harassment and provide for enforcement of such 
order in accordance with subpart F;
    (15) Issue initial decisions; and
    (16) Determine, in decisions in which the appellant is the 
prevailing party, whether the granting of interim relief is appropriate.
    (c) Settlement--(1) Settlement discussion. The judge may initiate 
attempts to settle the appeal informally at any time. The parties may 
agree to waive the prohibitions against ex parte communications during 
settlement discussions, and they may agree to any limits on the waiver.
    (2) Agreement. If the parties agree to settle their dispute, the 
settlement

[[Page 26]]

agreement is the final and binding resolution of the appeal, and the 
judge will dismiss the appeal with prejudice.
    (i) If the parties offer the agreement for inclusion in the record, 
and if the judge approves the agreement, it will be made a part of the 
record, and the Board will retain jurisdiction to ensure compliance with 
the agreement.
    (ii) If the agreement is not entered into the record, the Board will 
not retain jurisdiction to ensure compliance.

[54 FR 53504, Dec. 29, 1989, as amended at 62 FR 62689, Nov. 25, 1997; 
63 FR 35500, June 30, 1998; 77 FR 62366, Oct. 12, 2012]



Sec.  1201.42  Disqualifying a judge.

    (a) If a judge considers himself or herself disqualified, he or she 
will withdraw from the case, state on the record the reasons for doing 
so, and another judge will be promptly assigned.
    (b) A party may file a motion asking the judge to withdraw on the 
basis of personal bias or other disqualification. This motion must be 
filed as soon as the party has reason to believe there is a basis for 
disqualification. The reasons for the request must be set out in an 
affidavit or sworn statement under 28 U.S.C. 1746. (See appendix IV.)
    (c) If the judge denies the motion, the party requesting withdrawal 
may request certification of the issue to the Board as an interlocutory 
appeal under Sec.  1201.91 of this part. Failure to request 
certification is considered a waiver of the request for withdrawal.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62366, Oct. 12, 2012]



Sec.  1201.43  Sanctions.

    The judge may impose sanctions upon the parties as necessary to 
serve the ends of justice. This authority covers, but is not limited to, 
the circumstances set forth in paragraphs (a), (b), (c), (d), and (e) of 
this section. Before imposing a sanction, the judge shall provide 
appropriate prior warning, allow a response to the actual or proposed 
sanction when feasible, and document the reasons for any resulting 
sanction in the record.
    (a) Failure to comply with an order. When a party fails to comply 
with an order, the judge may:
    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) Prohibit the party failing to comply with the order from 
introducing evidence concerning the information sought, or from 
otherwise relying upon testimony related to that information;
    (3) Permit the requesting party to introduce secondary evidence 
concerning the information sought; and
    (4) Eliminate from consideration any appropriate part of the 
pleadings or other submissions of the party that fails to comply with 
the order.
    (b) Failure to prosecute or defend appeal. If a party fails to 
prosecute or defend an appeal, the judge may dismiss the appeal with 
prejudice or rule in favor of the appellant.
    (c) Failure to make timely filing. The judge may refuse to consider 
any motion or other pleading that is not filed in a timely fashion in 
compliance with this subpart.
    (d) Exclusion of a representative or other person. A judge may 
exclude or limit the participation of a representative or other person 
in the case for contumacious conduct or conduct prejudicial to the 
administration of justice. When the judge excludes a party's 
representative, the judge will afford the party a reasonable time to 
obtain another representative before proceeding with the case.
    (e) Cancellation, suspension, or termination of hearing. A judge may 
cancel a scheduled hearing, or suspend or terminate a hearing in 
progress, for contumacious conduct or conduct prejudicial to the 
administration of justice on the part of the appellant or the 
appellant's representative. If the judge suspends a hearing, the parties 
must be given notice as to when the hearing will resume. If the judge 
cancels or terminates a hearing, the judge must set a reasonable time 
during which the record will be kept open for receipt of written 
submissions.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62366, Oct. 12, 2012]

                                Hearings



Sec.  1201.51  Scheduling the hearing.

    (a) The hearing will be scheduled not earlier than 15 days after the 
date of

[[Page 27]]

the hearing notice unless the parties agree to an earlier date. The 
agency, upon request of the judge, must provide appropriate hearing 
space.
    (b) The judge may change the time, date, or place of the hearing, or 
suspend, adjourn, or continue the hearing. The change will not require 
the 15-day notice provided in paragraph (a) of this section.
    (c) Either party may file a motion for postponement of the hearing. 
The motion must be made in writing and must either be accompanied by an 
affidavit or sworn statement under 28 U.S.C. 1746. (See appendix IV.) 
The affidavit or sworn statement must describe the reasons for the 
request. The judge will grant the request for postponement only upon a 
showing of good cause.
    (d) The Board has established certain approved hearing locations, 
which are listed on the Board's public Web site (www.mspb.gov). The 
judge will advise parties of these hearing sites as appropriate. 
Parties, for good cause, may file motions requesting a different hearing 
location. Rulings on those motions will be based on a showing that a 
different location will be more advantageous to all parties and to the 
Board.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62366, Oct. 12, 2012]



Sec.  1201.52  Public hearings.

    (a) Closing the hearing. Hearings are generally open to the public; 
however, the judge may order a hearing or any part of a hearing closed 
when doing so would be in the best interests of a party, a witness, the 
public, or any other person affected by the proceeding. Any order 
closing the hearing will set out the reasons for the judge's decision. 
Any objections to the order will be made a part of the record.
    (b) Electronic devices. Absent express approval from the judge, no 
two-way communications devices may be operated and/or powered on in the 
hearing room; all cell phones, text devices, and all other two-way 
communications devices shall be powered off in the hearing room. 
Further, no cameras, recording devices, and/or transmitting devices may 
be operated, operational, and/or powered on in the hearing room without 
the consent of the judge.

[77 FR 62366, Oct. 12, 2012]



Sec.  1201.53  Record of proceedings.

    (a) Recordings. A recording of the hearing is generally prepared by 
a court reporter, under the judge's guidance. Such a recording is 
included with the Board's copy of the appeal file and serves as the 
official hearing record. Judges may prepare recordings in some hearings, 
such as those conducted telephonically.
    (b) Transcripts. A ``transcript'' refers not only to printed copies 
of the hearing testimony, but also to electronic versions of such 
documents. Along with recordings, a transcript prepared by the court 
reporter is accepted by the Board as the official hearing record. Any 
party may request that the court reporter prepare a full or partial 
transcript, at the requesting party's expense. Judges do not prepare 
transcripts.
    (c) Copies. Copies of recordings or existing transcripts will be 
provided upon request to parties free of charge. Such requests should be 
made in writing to the adjudicating regional or field office, or to the 
Clerk of the Board, as appropriate. Nonparties may request a copy of a 
hearing recording or existing transcript under the Freedom of 
Information Act (FOIA) and Part 1204 of the Board's regulations. A 
nonparty may request a copy by writing to the appropriate Regional 
Director, the Chief Administrative Judge of the appropriate MSPB Field 
Office, or to the Clerk of the Board at MSPB headquarters in Washington, 
DC, as appropriate. Nonparties may also make FOIA requests online at 
https://foia.mspb.gov.
    (d) Corrections to transcript. Any discrepancy between the 
transcript and the recording shall be resolved by the judge or the Clerk 
of the Board, as appropriate. Corrections to the official transcript may 
be made on motion by a party or on the judge's own motion or by the 
Clerk of the Board, as appropriate. Motions for corrections must be 
filed within 10 days after the receipt of a transcript. Corrections of 
the official transcript will be made only when substantive errors are 
found by the judge

[[Page 28]]

or by the Clerk of the Board, as appropriate.
    (e) Official record. Hearing exhibits and pleadings that have been 
accepted into the record, the official hearing record, if a hearing is 
held, and all orders and decisions of the judge and the Board, make up 
the official record of the case. Other than the Board's decisions, the 
official record is not available for public inspection and copying. The 
official record is, however, subject to requests under both the Freedom 
of Information Act (5 U.S.C. 552) and the Privacy Act (5 U.S.C. 552a) 
pursuant to the procedures contained in 5 CFR parts 1204 and 1205.

[77 FR 62366, Oct. 12, 2012]



Sec.  1201.55  Motions.

    (a) Form. All motions, except those made during a prehearing 
conference or a hearing, must be in writing. All motions must include a 
statement of the reasons supporting them. Written motions must be filed 
with the judge or the Board, as appropriate, and must be served upon all 
other parties in accordance with Sec.  1201.26(b)(2) of this part. A 
party filing a motion for extension of time, a motion for postponement 
of a hearing, or any other procedural motion must first contact the 
other party to determine whether there is any objection to the motion, 
and must state in the motion whether the other party has an objection.
    (b) Objection. Unless the judge provides otherwise, any objection to 
a written motion must be filed within 10 days from the date of service 
of the motion. Judges, in their discretion, may grant or deny motions 
for extensions of time to file pleadings without providing any 
opportunity to respond to the motions.
    (c) Motions for extension of time. Motions for extension of time 
will be granted only on a showing of good cause.
    (d) Motions for protective orders. A motion for an order under 5 
U.S.C. 1204(e)(1)(B) to protect a witness or other individual from 
harassment must be filed as early in the proceeding as practicable. The 
party seeking a protective order must include a concise statement of 
reasons justifying the motion, together with any relevant documentary 
evidence. An agency, other than the Office of Special Counsel, may not 
request such an order with respect to an investigation by the Special 
Counsel during the Special Counsel's investigation. An order issued 
under this paragraph may be enforced in the same manner as provided 
under subpart F for Board final decisions and orders.

[54 FR 53504, Dec. 29, 1989, as amended at 62 FR 17045, Apr. 9, 1997]



Sec.  1201.56  Burden and degree of proof.

    (a) Applicability. This section does not apply to the following 
types of appeals which are covered by Sec.  1201.57:
    (1) An individual right of action appeal under the Whistleblower 
Protection Act, 5 U.S.C. 1221;
    (2) An appeal under the Veterans Employment Opportunities Act, 5 
U.S.C. 3330a(d);
    (3) An appeal under the Uniformed Services Employment and 
Reemployment Rights Act, 38 U.S.C. 4324, in which the appellant alleges 
discrimination or retaliation in violation of 38 U.S.C. 4311; and
    (4) An appeal under 5 CFR 353.304, in which the appellant alleges a 
failure to restore, improper restoration of, or failure to return 
following a leave of absence.
    (b) Burden and degree of proof--(1) Agency. Under 5 U.S.C. 
7701(c)(1), and subject to the exceptions stated in paragraph (c) of 
this section, the agency bears the burden of proof and its action must 
be sustained only if:
    (i) It is brought under 5 U.S.C. 4303 or 5 U.S.C. 5335 and is 
supported by substantial evidence (as defined in Sec.  1201.4(p)); or
    (ii) It is brought under any other provision of law or regulation 
and is supported by a preponderance of the evidence (as defined in Sec.  
1201.4(q)).
    (2) Appellant. (i) The appellant has the burden of proof, by a 
preponderance of the evidence (as defined in Sec.  1201.4(q)), with 
respect to:
    (A) Issues of jurisdiction, except for cases in which the appellant 
asserts a violation of his right to reemployment following military duty 
under 38 U.S.C. 4312-4314;
    (B) The timeliness of the appeal; and
    (C) Affirmative defenses.

[[Page 29]]

    (ii) In appeals from reconsideration decisions of the Office of 
Personnel Management (OPM) involving retirement benefits, if the 
appellant filed the application, the appellant has the burden of 
proving, by a preponderance of the evidence (as defined in Sec.  
1201.4(q)), entitlement to the benefits. Where OPM proves by 
preponderant evidence an overpayment of benefits, an appellant may 
prove, by substantial evidence (as defined in Sec.  1201.4(p)), 
eligibility for waiver or adjustment.
    (c) Affirmative defenses of the appellant. Under 5 U.S.C. 
7701(c)(2), the Board is required to reverse the action of the agency, 
even where the agency has met the evidentiary standard stated in 
paragraph (b) of this section, if the appellant:
    (1) Shows harmful error in the application of the agency's 
procedures in arriving at its decision (as defined in Sec.  1201.4(r));
    (2) Shows that the decision was based on any prohibited personnel 
practice described in 5 U.S.C. 2302(b); or
    (3) Shows that the decision was not in accordance with law.
    (d) Administrative judge. The administrative judge will inform the 
parties of the proof required as to the issues of jurisdiction, the 
timeliness of the appeal, and affirmative defenses.

[80 FR 4496, Jan. 28, 2015]



Sec.  1201.57  Establishing jurisdiction in appeals not covered 
by Sec.  1201.56; burden and degree of proof; scope of review.

    (a) Applicability. This section applies to the following types of 
appeals:
    (1) An individual right of action (IRA) appeal under the 
Whistleblower Protection Act, 5 U.S.C. 1221;
    (2) A request for corrective action under the Veterans Employment 
Opportunities Act (VEOA), 5 U.S.C. 3330a(d);
    (3) A request for corrective action under the Uniformed Services 
Employment and Reemployment Rights Act (USERRA), 38 U.S.C. 4324, in 
which the appellant alleges discrimination or retaliation in violation 
of 38 U.S.C. 4311; and
    (4) An appeal under 5 CFR 353.304, in which an appellant alleges a 
failure to restore, improper restoration of, or failure to return 
following a leave of absence (denial of restoration appeal).
    (b) Matters that must be supported by nonfrivolous allegations. 
Except for proving exhaustion of a required statutory complaint process 
and standing to appeal (paragraphs (c)(1) and (3) of this section), in 
order to establish jurisdiction, an appellant who initiates an appeal 
covered by this section must make nonfrivolous allegations (as defined 
in Sec.  1201.4(s)) with regard to the substantive jurisdictional 
elements applicable to the particular type of appeal he or she has 
initiated.
    (c) Matters that must be proven by a preponderance of the evidence. 
An appellant who initiates an appeal covered by this section has the 
burden of proof, by a preponderance of the evidence (as defined in Sec.  
1201.4(q)), on the following matters:
    (1) When applicable, exhaustion of a statutory complaint process 
that is preliminary to an appeal to the Board;
    (2) Timeliness of an appeal under 5 CFR 1201.22;
    (3) Standing to appeal, when disputed by the agency or questioned by 
the Board. (An appellant has ``standing'' when he or she falls within 
the class of persons who may file an appeal under the law applicable to 
the appeal.); and
    (4) The merits of an appeal, if the appeal is within the Board's 
jurisdiction and was timely filed.
    (d) Scope of the appeal. Appeals covered by this section are limited 
in scope. With the exception of denial of restoration appeals, the Board 
will not consider matters described at 5 U.S.C. 7701(c)(2) in an appeal 
covered by this section.
    (e) Notice of jurisdictional, timeliness, and merits elements. The 
administrative judge will provide notice to the parties of the specific 
jurisdictional, timeliness, and merits elements that apply in a 
particular appeal.
    (f) Additional information. For additional information on IRA 
appeals, the reader should consult 5 CFR part 1209. For additional 
information on VEOA appeals, the reader should consult 5 CFR part 1208, 
subparts A & C. For additional information on USERRA appeals, the reader 
should consult 5 CFR part 1208, subparts A and B.

[[Page 30]]

    (g) For additional information on denial of restoration appeals, the 
reader should consult 5 CFR part 353, subparts A and C.

[80 FR 4496, Jan. 28, 2015]



Sec.  1201.58  Order of hearing.

    (a) In cases in which the agency has taken an action against an 
employee, the agency will present its case first.
    (b) The appellant will proceed first at hearings convened on the 
issues of:
    (1) Jurisdiction;
    (2) Timeliness; or
    (3) Office of Personnel Management disallowance of retirement 
benefits, when the appellant applied for those benefits.
    (c) The judge may vary the normal order of presenting evidence.

[54 FR 53504, Dec. 29, 1989. Redesignated at 80 FR 4496, Jan. 28, 2015]



Sec.  1201.59  Closing the record.

    (a) When there is a hearing, the record ordinarily will close at the 
conclusion of the hearing. When the judge allows the parties to submit 
argument, briefs, or documents previously identified for introduction 
into evidence, however, the record will remain open for as much time as 
the judge grants for that purpose.
    (b) If the appellant waives the right to a hearing, the record will 
close on the date the judge sets as the final date for the receipt or 
filing of submissions of the parties.
    (c) Once the record closes, additional evidence or argument will 
ordinarily not be accepted unless:
    (1) The party submitting it shows that the evidence or argument was 
not readily available before the record closed; or
    (2) It is in rebuttal to new evidence or argument submitted by the 
other party just before the record closed.
    (d) The judge will include in the record any supplemental citations 
received from the parties or approved corrections of the transcript, if 
one has been prepared.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62366, Oct. 12, 2012. 
Redesignated at 80 FR 4496, Jan. 28, 2015]

                                Evidence



Sec.  1201.61  Exclusion of evidence and testimony.

    Any evidence and testimony that is offered in the hearing and 
excluded by the judge will be described, and that description will be 
made a part of the record.



Sec.  1201.63  Stipulations.

    The parties may stipulate to any matter of fact. The stipulation 
will satisfy a party's burden of proving the fact alleged.



Sec.  1201.64  Official notice.

    Official notice is the Board's or judge's recognition of certain 
facts without requiring evidence to be introduced establishing those 
facts. The judge, on his or her own motion or on the motion of a party, 
may take official notice of matters of common knowledge or matters that 
can be verified. The parties may be given an opportunity to object to 
the taking of official notice. The taking of official notice of any fact 
satisfies a party's burden of proving that fact.

                                Discovery



Sec.  1201.71  Purpose of discovery.

    Proceedings before the Board will be conducted as expeditiously as 
possible with due regard to the rights of the parties. Discovery is 
designed to enable a party to obtain relevant information needed to 
prepare the party's case. These regulations are intended to provide a 
simple method of discovery. They will be interpreted and applied so as 
to avoid delay and to facilitate adjudication of the case. Parties are 
expected to start and complete discovery with a minimum of Board 
intervention. Discovery requests and responses thereto are not to be 
filed in the first instance with the Board. They are only filed with the 
Board in connection with a motion to compel discovery under 1201.73(c) 
of this part, with a motion to subpoena discovery under 1201.73(d) of 
this part, or as substantive evidence to be considered in the appeal.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62367, Oct. 12, 2012]

[[Page 31]]



Sec.  1201.72  Explanation and scope of discovery.

    (a) Explanation. Discovery is the process, apart from the hearing, 
by which a party may obtain relevant information, including the 
identification of potential witnesses, from another person or a party, 
that the other person or party has not otherwise provided. Relevant 
information includes information that appears reasonably calculated to 
lead to the discovery of admissible evidence. This information is 
obtained to assist the parties in preparing and presenting their cases. 
The Federal Rules of Civil Procedure may be used as a general guide for 
discovery practices in proceedings before the Board. Those rules, 
however, are instructive rather than controlling.
    (b) Scope. Discovery covers any nonprivileged matter that is 
relevant to the issues involved in the appeal, including the existence, 
description, nature, custody, condition, and location of documents or 
other tangible things, and the identity and location of persons with 
knowledge of relevant facts. Discovery requests that are directed to 
nonparties and nonparty Federal agencies and employees are limited to 
information that appears directly material to the issues involved in the 
appeal.
    (c) Methods. Parties may use one or more of the methods provided 
under the Federal Rules of Civil Procedure. These methods include 
written interrogatories to parties, depositions, requests for production 
of documents or things for inspection or copying, and requests for 
admission.
    (d) Limitations. The judge may limit the frequency or extent of use 
of the discovery methods permitted by these regulations. Such 
limitations may be imposed if the judge finds that:
    (1) The discovery sought is cumulative or duplicative, or is 
obtainable from some other source that is more convenient, less 
burdensome, or less expensive;
    (2) The party seeking discovery has had sufficient opportunity by 
discovery in the action to obtain the information sought; or
    (3) The burden or expense of the proposed discovery outweighs its 
likely benefit.

[68 FR 54651, Sept. 18, 2003, as amended at 73 FR 18150, Apr. 3, 2008; 
73 FR 21415, Apr. 21, 2008]



Sec.  1201.73  Discovery procedures.

    (a) Initiating discovery. A party seeking discovery must start the 
process by serving a request for discovery on the representative of the 
party or nonparty, or, if there is no representative, on the party or 
nonparty themselves. The request for discovery must state the time limit 
for responding, as prescribed in 1201.73(d) of this part, and must 
specify the time and place of the taking of the deposition, if 
applicable. When a party directs a request for discovery to the official 
or employee of a Federal agency that is a party, the agency must make 
the officer or employee available on official time to respond to the 
request and must assist the officer or employee as necessary in 
providing relevant information that is available to the agency.
    (b) Responses to discovery requests. A party or nonparty must answer 
a discovery request within the time provided under paragraph (d)(2) of 
this section, either by furnishing to the requesting party the 
information requested or agreeing to make deponents available to testify 
within a reasonable time, or by stating an objection to the particular 
request and the reasons for the objection. Parties and nonparties may 
respond to discovery requests by electronic mail if authorized by the 
requesting party.
    (c) Motions to compel or issue a subpoena. (1) If a party fails or 
refuses to respond in full to a discovery request, the requesting party 
may file a motion to compel discovery. If a nonparty fails or refuses to 
respond in full to a discovery request, the requesting party may file a 
motion for the issuance of a subpoena directed to the individual or 
entity from which the discovery is sought under the procedures described 
in 1201.81 of this part. The requesting party must serve a copy of the 
motion on the other party or nonparty. Before filing any motion to 
compel or issue a subpoena, the moving party shall discuss the 
anticipated motion with the

[[Page 32]]

opposing party or nonparty, and all those involved shall make a good 
faith effort to resolve the discovery dispute and narrow the areas of 
disagreement. The motion shall include:
    (i) A copy of the original request and a statement showing that the 
information sought is discoverable under section 1201.72;
    (ii) A copy of the response to the request (including the objections 
to discovery) or, where appropriate, a statement that no response has 
been received, along with an affidavit or sworn statement under 28 
U.S.C. 1746 supporting the statement (See appendix IV to part 1201); and
    (iii) A statement that the moving party has discussed or attempted 
to discuss the anticipated motion with the nonmoving party or nonparty 
and made a good faith effort to resolve the discovery dispute and narrow 
the areas of disagreement.
    (2) The party or nonparty from whom discovery was sought may respond 
to the motion to compel or the motion to issue a subpoena within the 
time limits stated in paragraph (d)(3) of this section.
    (d) Time limits. (1) Unless otherwise directed by the judge, parties 
must serve their initial discovery requests within 30 days after the 
date on which the judge issues an order to the respondent agency to 
produce the agency file and response.
    (2) A party or nonparty must serve a response to a discovery request 
promptly, but not later than 20 days after the date of service of the 
request or order of the judge. Any discovery requests following the 
initial request must be served within 10 days of the date of service of 
the prior response, unless the parties are otherwise directed by the 
judge. Deposition witnesses must give their testimony at the time and 
place stated in the request for deposition or in the subpoena, unless 
the parties agree on another time or place.
    (3) Any motion for an order to compel or issue a subpoena must be 
filed with the judge within 10 days of the date of service of objections 
or, if no response is received, within 10 days after the time limit for 
response has expired. Any pleading in opposition to a motion to compel 
or subpoena discovery must be filed with the judge within 10 days of the 
date of service of the motion.
    (4) Discovery must be completed within the time period designated by 
the judge or, if no such period is designated, no later than the 
prehearing or close of record conference.
    (e) Limits on the number of discovery requests. (1) Absent prior 
approval by the judge, interrogatories served by parties upon another 
party or a nonparty may not exceed 25 in number, including all discrete 
subparts.
    (2) Absent prior approval by the judge or agreement by the parties, 
each party may not take more than 10 depositions.
    (3) Requests to exceed the limitations set forth in paragraphs 
(e)(1) and (e)(2) of this section may be granted at the discretion of 
the judge. In considering such requests, the judge shall consider the 
factors identified in Sec.  1201.72(d) of this part.

[77 FR 62367, Oct. 12, 2012]



Sec.  1201.74  Orders for discovery.

    (a) Motion for an order compelling discovery. Motions for orders 
compelling discovery and motions for the appearance of nonparties must 
be filed with the judge in accordance with Sec.  1201.73(c)(1) and 
(d)(3). An administrative judge may deny a motion to compel discovery if 
a party fails to comply with the requirements of 5 CFR 1201.73(c)(1) and 
(d)(3).
    (b) Content of order. Any order issued will include, where 
appropriate:
    (1) A provision that the person to be deposed must be notified of 
the time and place of the deposition;
    (2) Any conditions or limits concerning the conduct or scope of the 
proceedings or the subject matter that may be necessary to prevent undue 
delay or to protect a party or other individual or entity from undue 
expense, embarrassment, or oppression;
    (3) Limits on the time for conducting depositions, answering written 
interrogatories, or producing documentary evidence; and
    (4) Other restrictions upon the discovery process that the judge 
sets.
    (c) Noncompliance. The judge may impose sanctions under Sec.  
1201.43 of this

[[Page 33]]

part for failure to comply with an order compelling discovery.

[54 FR 53504, Dec. 29, 1989, as amended at 73 FR 18151, Apr. 3, 2008; 78 
FR 23458, Apr. 19, 2013]



Sec.  1201.75  Taking depositions.

    Depositions may be taken by any method agreed upon by the parties. 
The person providing information is subject to penalties for intentional 
false statements.

                                Subpoenas



Sec.  1201.81  Requests for subpoenas.

    (a) Request. Parties who wish to obtain subpoenas that would require 
the attendance and testimony of witnesses, or subpoenas that would 
require the production of documents or other evidence under 5 U.S.C. 
1204(b)(2)(A), should file their motions for those subpoenas with the 
judge. The Board has authority under 5 U.S.C. 1204(b)(2)(A) to issue a 
subpoena requiring the attendance and testimony of any individual 
regardless of location and for the production of documentary or other 
evidence from any place in the United States, any territory or 
possession of the United States, the Commonwealth of Puerto Rico or the 
District of Columbia. Subpoenas are not ordinarily required to obtain 
the attendance of Federal employees as witnesses.
    (b) Form. Parties requesting subpoenas must file their requests, in 
writing, with the judge. Each request must identify specifically the 
books, papers, or testimony desired.
    (c) Relevance. The request must be supported by a showing that the 
evidence sought is directly material to the issues involved in the 
appeal.
    (d) Rulings. Any judge who does not have the authority to issue 
subpoenas will refer the request to an official with authority to rule 
on the request, with a recommendation for decision. The official to whom 
the request is referred will rule on the request promptly. Judges who 
have the authority to rule on these requests themselves will do so 
directly.

[54 FR 53504, Dec. 29, 1989, as amended at 70 FR 30608, May 27, 2005; 77 
FR 62367, Oct. 12, 2012]



Sec.  1201.82  Motions to quash subpoenas.

    Any person to whom a subpoena is directed, or any party, may file a 
motion to quash or limit the subpoena. The motion must be filed with the 
judge, and it must include the reasons why compliance with the subpoena 
should not be required or the reasons why the subpoena's scope should be 
limited.



Sec.  1201.83  Serving subpoenas.

    (a) Any person who is at least 18 years of age and who is not a 
party to the appeal may serve a subpoena. The means prescribed by 
applicable state law are sufficient. The party who requested the 
subpoena, and to whom the subpoena has been issued, is responsible for 
serving the subpoena.
    (b) A subpoena directed to an individual outside the territorial 
jurisdiction of any court of the United States may be served in the 
manner described by the Federal Rules of Civil Procedure for service of 
a subpoena in a foreign country.



Sec.  1201.84  Proof of service.

    The person who has served the subpoena must certify that he or she 
did so:
    (a) By delivering it to the witness in person,
    (b) By registered or certified mail, or
    (c) By delivering the subpoena to a responsible person (named in the 
document certifying the delivery) at the residence or place of business 
(as appropriate) of the person for whom the subpoena was intended.

The document in which the party makes this certification also must 
include a statement that the prescribed fees have been paid or offered.



Sec.  1201.85  Enforcing subpoenas.

    (a) If a person who has been served with a Board subpoena fails or 
refuses to comply with its terms, the party seeking compliance may file 
a written motion for enforcement with the judge or make an oral motion 
for enforcement while on the record at a hearing. That party must 
present the document certifying that the subpoena was served and, except 
where the witness was required to appear before the judge, must submit 
an affidavit or

[[Page 34]]

sworn statement under 28 U.S.C. 1746 (see appendix IV) describing the 
failure or refusal to obey the subpoena. The Board, in accordance with 5 
U.S.C. 1204(c), may then ask the appropriate United States district 
court to enforce the subpoena. If the person who has failed or refused 
to comply with a Board subpoena is located in a foreign country, the 
U.S. District Court for the District of Columbia will have jurisdiction 
to enforce compliance, to the extent that a U.S. court can assert 
jurisdiction over an individual in the foreign country.
    (b) Upon application by the Special Counsel, the Board may seek 
court enforcement of a subpoena issued by the Special Counsel in the 
same manner in which it seeks enforcement of Board subpoenas, in 
accordance with 5 U.S.C. 1212(b)(3).

                          Interlocutory Appeals



Sec.  1201.91  Explanation.

    An interlocutory appeal is an appeal to the Board of a ruling made 
by a judge during a proceeding. The judge may permit the appeal if he or 
she determines that the issue presented in it is of such importance to 
the proceeding that it requires the Board's immediate attention. Either 
party may make a motion for certification of an interlocutory appeal. In 
addition, the judge, on his or her own motion, may certify an 
interlocutory appeal to the Board. If the appeal is certified, the Board 
will decide the issue and the judge will act in accordance with the 
Board's decision.



Sec.  1201.92  Criteria for certifying interlocutory appeals.

    The judge will certify a ruling for review only if the record shows 
that:
    (a) The ruling involves an important question of law or policy about 
which there is substantial ground for difference of opinion; and
    (b) An immediate ruling will materially advance the completion of 
the proceeding, or the denial of an immediate ruling will cause undue 
harm to a party or the public.



Sec.  1201.93  Procedures.

    (a) Motion for certification. A party seeking the certification of 
an interlocutory appeal must file a motion for certification within 10 
days of the date of the ruling to be appealed. The motion must be filed 
with the judge, and must state why certification is appropriate and what 
the Board should do and why. The opposing party may file objections 
within 10 days of the date of service of the motion, or within any other 
time period that the judge may designate.
    (b) Certification and review. The judge will grant or deny a motion 
for certification within five days after receiving all pleadings or, if 
no response is filed, within 10 days after receiving the motion. If the 
judge grants the motion for certification, he or she will refer the 
record to the Board. If the judge denies the motion, the party that 
sought certification may raise the matter at issue in a petition for 
review filed after the initial decision is issued, in accordance with 
Sec. Sec.  1201.113 and 1201.114 of this part.
    (c) Stay of appeal. The judge has the authority to proceed with or 
to stay the processing of the appeal while an interlocutory appeal is 
pending with the Board. The passage of time during any stay granted 
under this section is not deemed, or accounted for, as a case suspension 
under Sec.  1201.28 of this part. If the judge does not stay the appeal, 
the Board may do so while an interlocutory appeal is pending with it.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62367, Oct. 12, 2012]

                         Ex Parte Communications



Sec.  1201.101  Explanation and definitions.

    (a) Explanation. An ex parte communication is an oral or written 
communication between a decision-making official of the Board and an 
interested party to a proceeding, when that communication is made 
without providing the other parties to the appeal with a chance to 
participate. Not all ex parte communications are prohibited. Those that 
involve the merits of the case, or those that violate rules requiring 
submissions to be in writing, are prohibited. Accordingly, interested 
parties

[[Page 35]]

may ask about such matters as the status of a case, when it will be 
heard, and methods of submitting evidence to the Board. Parties may not 
ask about matters such as what defense they should use or whether their 
evidence is adequate, and they may not make a submission orally if that 
submission is required to be made in writing.
    (b) Definitions for purposes of this section--(1) Interested party 
includes:
    (i) Any party or representative of a party involved in a proceeding 
before the Board; and
    (ii) Any other person who might be affected by the outcome of a 
proceeding before the Board.
    (2) Decision-making official means any judge, officer, or other 
employee of the Board designated to hear and decide cases except when 
such judge, officer, or other employee of the Board is serving as a 
mediator or settlement judge who is not the adjudicating judge.

[54 FR 53504, Dec. 29, 1989, as amended at 77 FR 62367, Oct. 12, 2012]



Sec.  1201.102  Prohibition on ex parte communications.

    Except as otherwise provided in Sec.  1201.41(c)(1) of this part, ex 
parte communications that concern the merits of any matter before the 
Board for adjudication, or that otherwise violate rules requiring 
written submissions, are prohibited from the time the persons involved 
know that the Board may consider the matter until the time the Board has 
issued a final decision on the matter.



Sec.  1201.103  Placing communications in the record; sanctions.

    (a) Any communication made in violation of Sec.  1201.102 of this 
part will be made a part of the record. If the communication was oral, a 
memorandum stating the substance of the discussion will be placed in the 
record.
    (b) If there has been a violation of Sec.  1201.102 of this part, 
the judge or the Clerk of the Board, as appropriate, will notify the 
parties in writing that the regulation has been violated, and will give 
the parties 10 days to file a response.
    (c) The following sanctions are available:
    (1) Parties. The offending party may be required to show why, in the 
interest of justice, the claim or motion should not be dismissed, 
denied, or otherwise adversely affected.
    (2) Other persons. The Board may invoke appropriate sanctions 
against other offending parties.

[54 FR 53504, Dec. 29, 1989, as amended at 70 FR 30609, May 27, 2005]

                             Final Decisions



Sec.  1201.111  Initial decision by judge.

    (a) The judge will prepare an initial decision after the record 
closes and will serve that decision on all parties to the appeal, 
including named parties, permissive intervenors, and intervenors of 
right. The Board satisfies its legal obligation under 5 U.S.C. 
7701(b)(1) by making electronic copies of initial decisions available to 
the Office of Personnel Management.
    (b) Each initial decision will contain:
    (1) Findings of fact and conclusions of law upon all the material 
issues of fact and law presented on the record;
    (2) The reasons or bases for those findings and conclusions;
    (3) An order making final disposition of the case, including 
appropriate relief;
    (4) A statement, if the appellant is the prevailing party, as to 
whether interim relief is provided effective upon the date of the 
decision, pending the outcome of any petition for review filed by 
another party under subpart C of this part;
    (5) The date upon which the decision will become final (a date that, 
for purposes of this section, is 35 days after issuance); and
    (6) A statement of any further process available, including, as 
appropriate, a petition for review under Sec.  1201.114 of this part, a 
petition for enforcement under Sec.  1201.182, a motion for attorney 
fees under Sec.  1201.203, a motion to initiate an addendum proceeding 
for consequential damages or compensatory damages under Sec.  1201.204, 
and a petition for judicial review.
    (c) Interim relief. (1) Under 5 U.S.C. 7701(b)(2), if the appellant 
is the prevailing party, the initial decision will provide appropriate 
interim relief to the appellant effective upon the date of

[[Page 36]]

the initial decision and remaining in effect until the date of the final 
order of the Board on any petition for review, unless the judge 
determines that the granting of interim relief is not appropriate. The 
agency may decline to return the appellant to his or her place of 
employment if it determines that the return or presence of the appellant 
will be unduly disruptive to the work environment. However, pay and 
benefits must be provided.
    (2) An initial decision that orders interim relief shall include a 
section which will provide the appellant specific notice that the relief 
ordered in the decision must be provided by the agency effective as of 
the date of the decision if a party files a petition for review. If the 
relief ordered in the initial decision requires the agency to effect an 
appointment, the notice required by this section will so state, will 
specify the title and grade of the appointment, and will specifically 
advise the appellant of his right to receive pay and benefits while any 
petition for review is pending, even if the agency determines that the 
appellant's return to or presence in the workplace would be unduly 
disruptive.

[54 FR 53504, Dec. 29, 1989, as amended at 62 FR 17045, Apr. 9, 1997; 63 
FR 41179, Aug. 3, 1998; 64 FR 27900, May 24, 1999; 77 FR 62367, Oct. 12, 
2012]



Sec.  1201.112  Jurisdiction of judge.

    (a) After issuing the initial decision, the judge will retain 
jurisdiction over a case only to the extent necessary to:
    (1) Correct the transcript; when one is obtained;
    (2) Rule on a request by the appellant for attorney fees, 
consequential damages, or compensatory damages under subpart H of this 
part;
    (3) Process any petition for enforcement filed under subpart F of 
this part;
    (4) Vacate an initial decision to accept into the record a 
settlement agreement that is filed prior to the deadline for filing a 
petition for review, even if the settlement agreement is not received 
until after the date when the initial decision becomes final under Sec.  
1201.113 of this part.
    (b) Nothing is this section affects the time limits prescribed in 
Sec.  1201.113 regarding the finality of an initial decision or the time 
allowed for filing a petition for review.

[59 FR 22125, Apr. 29, 1994, as amended at 62 FR 17045, Apr. 9, 1997; 70 
FR 30609, May 27, 2005; 77 FR 62368, Oct. 12, 2012; 78 FR 23458, Apr. 
19, 2013]



Sec.  1201.113  Finality of decision.

    The initial decision of the judge will become the Board's final 
decision 35 days after issuance. Initial decisions are not precedential.
    (a) Exceptions. The initial decision will not become the Board's 
final decision if within the time limit for filing specified in 1201.114 
of this part, any party files a petition for review or, if no petition 
for review is filed, files a request that the initial decision be 
vacated for the purpose of accepting a settlement agreement into the 
record.
    (b) Petition for review denied. If the Board denies all petitions 
for review, the initial decision will become final when the Board issues 
its last decision denying a petition for review.
    (c) Petition for review granted or case reopened. If the Board 
grants a petition for review or a cross petition for review, or reopens 
or dismisses a case, the decision of the Board is final if it disposes 
of the entire action.
    (d) Extensions. The Board may extend the time limit for filing a 
petition for good cause shown as specified in Sec.  1201.114 of this 
part.
    (e) Exhaustion. Administrative remedies are exhausted when a 
decision becomes final in accordance with this section.
    (f) When the Board, by final decision or order, finds there is 
reason to believe a current Federal employee may have committed a 
prohibited personnel practice described at 5 U.S.C. 2302(b)(8) or 
2302(b)(9)(A)(i), (B), (C), or (D), the Board will refer the matter to 
the Special Counsel to investigate and take appropriate action under 5 
U.S.C. 1215.

[54 FR 53504, Dec. 29, 1989, as amended at 62 FR 59992, Nov. 6, 1997; 77 
FR 62368, Oct. 12, 2012; 78 FR 39545, July 2, 2013]

[[Page 37]]



           Subpart C_Petitions for Review of Initial Decisions



Sec.  1201.114  Petition and cross petition for review--content and procedure.

    (a) Pleadings allowed. Pleadings allowed on review include a 
petition for review, a cross petition for review, a response to a 
petition for review, a response to a cross petition for review, and a 
reply to a response to a petition for review.
    (1) A petition for review is a pleading in which a party contends 
that an initial decision was incorrectly decided in whole or in part.
    (2) A cross petition for review has the same meaning as a petition 
for review but is used to describe a pleading that is filed by a party 
when another party has already filed a timely petition for review.
    (3) A response to a petition for review and a cross petition for 
review may be contained in a single pleading.
    (4) A reply to a response to a petition for review is limited to the 
factual and legal issues raised by another party in the response to the 
petition for review. It may not raise new allegations of error.
    (5) No pleading other than the ones described in this paragraph will 
be accepted unless the party files a motion with and obtains leave from 
the Clerk of the Board. The motion must describe the nature of and need 
for the pleading.
    (b) Contents of petition or cross petition for review. A petition or 
cross petition for review states a party's objections to the initial 
decision, including all of the party's legal and factual arguments, and 
must be supported by references to applicable laws or regulations and by 
specific references to the record. Any petition or cross petition for 
review that contains new evidence or argument must include an 
explanation of why the evidence or argument was not presented before the 
record below closed (see Sec.  1201.58 of this part). A petition or 
cross petition for review should not include documents that were part of 
the record below, as the entire administrative record will be available 
to the Board.
    (c) Who may file. Any party to the proceeding, the Director of the 
Office of Personnel Management (OPM), or the Special Counsel (under 5 
U.S.C. 1212(c)) may file a petition or cross petition for review. The 
Director of OPM may request review only if he or she believes that the 
decision is erroneous and will have a substantial impact on any civil 
service law, rule, or regulation under OPM's jurisdiction. 5 U.S.C. 
7701(e)(2). All submissions to the Board must contain the signature of 
the party or of the party's designated representative.
    (d) Place for filing. All pleadings described in paragraph (a) and 
all motions and pleadings associated with them must be filed with the 
Clerk of the Merit Systems Protection Board, 1615 M Street NW., 
Washington, DC 20419, by commercial or personal delivery, by facsimile, 
by mail, or by electronic filing in accordance with 1201.14 of this 
part.
    (e) Time for filing. Any petition for review must be filed within 35 
days after the date of issuance of the initial decision or, if the 
petitioner shows that the initial decision was received more than 5 days 
after the date of issuance, within 30 days after the date the petitioner 
received the initial decision. For purposes of this section, the date 
that the petitioner receives the initial decision is determined 
according to the standard set forth at Sec.  1201.22(b)(3) of this part, 
pertaining to an appellant's receipt of a final agency decision. If the 
petitioner is represented, the 30-day time period begins to run upon 
receipt of the initial decision by either the representative or the 
petitioner, whichever comes first. A cross petition for review must be 
filed within 25 days of the date of service of the petition for review. 
Any response to a petition or cross petition for review must be filed 
within 25 days after the date of service of the petition or cross 
petition. Any reply to a response to a petition for review must be filed 
within 10 days after the date of service of the response to the petition 
for review.
    (f) Extension of time to file. The Board will grant a motion for 
extension of time to file a pleading described in paragraph (a) only if 
the party submitting the motion shows good cause. Motions for extensions 
must be filed with the Clerk of the Board on or before the date on which 
the petition or other

[[Page 38]]

pleading is due. The Board, in its discretion, may grant or deny those 
motions without providing the other parties the opportunity to comment 
on them. A motion for an extension must be accompanied by an affidavit 
or sworn statement under 28 U.S.C. 1746. (See Appendix IV.) The 
affidavit or sworn statement must include a specific and detailed 
description of the circumstances alleged to constitute good cause, and 
it should be accompanied by any available documentation or other 
evidence supporting the matters asserted.
    (g) Late filings. Any pleading described in paragraph (a) of this 
section that is filed late must be accompanied by a motion that shows 
good cause for the untimely filing, unless the Board has specifically 
granted an extension of time under paragraph (f) of this section, or 
unless a motion for extension is pending before the Board. The motion 
must be accompanied by an affidavit or sworn statement under 28 U.S.C. 
1746. (See Appendix IV.) The affidavit or sworn statement must include: 
The reasons for failing to request an extension before the deadline for 
the submission, and a specific and detailed description of the 
circumstances causing the late filing, accompanied by supporting 
documentation or other evidence. Any response to the motion may be 
included in the response to the petition for review, the cross petition 
for review, or the response to the cross petition for review. The 
response will not extend the time provided by paragraph (e) of this 
section to file a cross petition for review or to respond to the 
petition or cross petition. In the absence of a motion, the Board may, 
in its discretion, determine on the basis of the existing record whether 
there was good cause for the untimely filing, or it may provide the 
party that submitted the document with an opportunity to show why it 
should not be dismissed or excluded as untimely.
    (h) Length limitations. A petition for review, a cross petition for 
review, or a response to a petition for review, whether computer 
generated, typed, or handwritten, is limited to 30 pages or 7500 words, 
whichever is less. A reply to a response to a petition for review is 
limited to 15 pages or 3750 words, whichever is less. Computer generated 
and typed pleadings must use no less than 12 point typeface and 1-inch 
margins and must be double spaced and only use one side of a page. The 
length limitation is exclusive of any table of contents, table of 
authorities, attachments, and certificate of service. A request for 
leave to file a pleading that exceeds the limitations prescribed in this 
paragraph must be received by the Clerk of the Board at least 3 days 
before the filing deadline. Such requests must give the reasons for a 
waiver as well as the desired length of the pleading and are granted 
only in exceptional circumstances. The page and word limits set forth 
above are maximum limits. Parties are not expected or required to submit 
pleadings of the maximum length. Typically, a well-written petition for 
review is between 5 and 10 pages long.
    (i) Intervention. (1) By Director of OPM. The Director of OPM may 
intervene in a case before the Board under the standards stated in 5 
U.S.C. 7701(d). The notice of intervention is timely if it is filed with 
the Clerk of the Board within 45 days of the date the petition for 
review was filed. If the Director requests additional time for filing a 
brief on intervention, the Board may, in its discretion, grant the 
request. A party may file a response to the Director's brief within 15 
days of the date of service of that brief. The Director must serve the 
notice of intervention and the brief on all parties.
    (2) By Special Counsel. (i) Under 5 U.S.C. 1212(c), the Special 
Counsel may intervene as a matter of right, except as provided in 
paragraph (i)(2)(ii) of this section. The notice of intervention is 
timely filed if it is filed with the Clerk of the Board within 45 days 
of the date the petition for review was filed. If the Special Counsel 
requests additional time for filing a brief on intervention, the Board 
may, in its discretion, grant the request. A party may file a response 
to the Special Counsel's brief within 15 days of the date of service. 
The Special Counsel must serve the notice of intervention and the brief 
on all parties.
    (ii) The Special Counsel may not intervene in an action brought by 
an individual under 5 U.S.C. 1221, or in an

[[Page 39]]

appeal brought by an individual under 5 U.S.C. 7701, without the consent 
of that individual. The Special Counsel must present evidence that the 
individual has consented to the intervention at the time the motion to 
intervene is filed.
    (3) Permissive intervenors. Any person, organization, or agency, by 
motion made in a petition for review, may ask for permission to 
intervene. The motion must state in detail the reasons why the person, 
organization, or agency should be permitted to intervene. A motion for 
permission to intervene will be granted if the requester shows that he 
or she will be affected directly by the outcome of the proceeding. Any 
person alleged to have committed a prohibited personnel practice under 5 
U.S.C. 2302(b) may ask for permission to intervene.
    (j) Service. A party submitting a pleading must serve a copy of it 
on each party and on each representative, as required by paragraph 
(b)(2) of Sec.  1201.26.
    (k) Closing the record. The record closes on expiration of the 
period for filing the reply to the response to the petition for review 
or on expiration of the period for filing a response to the cross 
petition for review, whichever is later, or to the brief on 
intervention, if any, or on any other date the Board sets for this 
purpose. Once the record closes, no additional evidence or argument will 
be accepted unless it is new and material as defined in Sec.  
1201.115(d) and the party submitting it shows that the evidence or 
argument was not readily available before the record closed.
    (l) Rejection for failure to comply. The Clerk of the Board may 
reject material submitted for filing that does not substantially conform 
to the procedural requirements of this subpart by issuing a rejection 
letter advising the parties of the nature of the nonconformity and the 
requirements and deadline for resubmission. Any deadlines affected by 
the rejection will be addressed in the rejection letter.

[77 FR 62368, Oct. 12, 2012, as amended at 78 FR 23458, Apr. 19, 2013]



Sec.  1201.115  Criteria for granting petition or cross petition for review.

    The Board normally will consider only issues raised in a timely 
filed petition or cross petition for review. Situations in which the 
Board may grant a petition or cross petition for review include, but are 
not limited to, a showing that:
    (a) The initial decision contains erroneous findings of material 
fact.
    (1) Any alleged factual error must be material, meaning of 
sufficient weight to warrant an outcome different from that of the 
initial decision.
    (2) A petitioner who alleges that the judge made erroneous findings 
of material fact must explain why the challenged factual determination 
is incorrect and identify specific evidence in the record that 
demonstrates the error. In reviewing a claim of an erroneous finding of 
fact, the Board will give deference to an administrative judge's 
credibility determinations when they are based, explicitly or 
implicitly, on the observation of the demeanor of witnesses testifying 
at a hearing.
    (b) The initial decision is based on an erroneous interpretation of 
statute or regulation or the erroneous application of the law to the 
facts of the case. The petitioner must explain how the error affected 
the outcome of the case.
    (c) The judge's rulings during either the course of the appeal or 
the initial decision were not consistent with required procedures or 
involved an abuse of discretion, and the resulting error affected the 
outcome of the case.
    (d) New and material evidence or legal argument is available that, 
despite the petitioner's due diligence, was not available when the 
record closed. To constitute new evidence, the information contained in 
the documents, not just the documents themselves, must have been 
unavailable despite due diligence when the record closed.
    (e) Notwithstanding the above provisions in this section, the Board 
reserves the authority to consider any issue in an appeal before it.

[77 FR 62369, Oct. 12, 2012]

[[Page 40]]



Sec.  1201.116  Compliance with orders for interim relief.

    (a) Certification of compliance. If the appellant was the prevailing 
party in the initial decision and the decision granted the appellant 
interim relief, any petition or cross petition for review filed by the 
agency must be accompanied by a certification that the agency has 
complied with the interim relief order either by providing the required 
interim relief or by satisfying the requirements of 5 U.S.C. 
7701(b)(2)(A)(ii) and (B).
    (b) Challenge to certification. If the appellant challenges the 
agency's certification of compliance with the interim relief order, the 
Board will issue an order affording the agency the opportunity to submit 
evidence of its compliance. The appellant may respond to the agency's 
submission of evidence within 10 days after the date of service of the 
submission.
    (c) Allegation of noncompliance in petition or cross petition for 
review. If an appellant or an intervenor files a petition or cross 
petition for review of an initial decision ordering interim relief and 
such petition includes a challenge to the agency's compliance with the 
interim relief order, upon order of the Board the agency must submit 
evidence that it has provided the interim relief required or that it has 
satisfied the requirements of 5 U.S.C. 7701(b)(2)(A)(ii) and (B).
    (d) Request for dismissal for noncompliance with interim relief 
order. If the agency files a petition or cross petition for review and 
has not provided the required interim relief, the appellant may request 
dismissal of the agency's petition. Any such request must be filed with 
the Clerk of the Board within 25 days of the date of service of the 
agency's petition. A copy of the response must be served on the agency 
at the same time it is filed with the Board. The agency may respond with 
evidence and argument to the appellant's request to dismiss within 15 
days of the date of service of the request. If the appellant files a 
motion to dismiss beyond the time limit, the Board will dismiss the 
motion as untimely unless the appellant shows that it is based on 
information not readily available before the close of the time limit.
    (e) Effect of failure to show compliance with interim relief order. 
Failure by an agency to provide the certification required by paragraph 
(a) of this section with its petition or cross petition for review, or 
to provide evidence of compliance in response to a Board order in 
accordance with paragraphs (b), (c), or (d) of this section, may result 
in the dismissal of the agency's petition or cross petition for review.
    (f) Back pay and attorney fees. Nothing in this section shall be 
construed to require any payment of back pay for the period preceding 
the date of the judge's initial decision or attorney fees before the 
decision of the Board becomes final.
    (g) Allegations of noncompliance after a final decision is issued. 
If the initial decision granted the appellant interim relief, but the 
appellant is not the prevailing party in the final Board order disposing 
of a petition for review, and the appellant believes that the agency has 
not provided full interim relief, the appellant may file an enforcement 
petition with the regional office under 1201.182 of this part. The 
appellant must file this petition within 20 days of learning of the 
agency's failure to provide full interim relief. If the appellant 
prevails in the final Board order disposing of a petition for review, 
then any interim relief enforcement motion filed will be treated as a 
motion for enforcement of the final decision. Petitions under this 
subsection will be processed under 1201.183 of this part.

[77 FR 62369, Oct. 12, 2012]



Sec.  1201.117  Board decisions; procedures for review or reopening.

    (a) In any case that is reopened or reviewed, the Board may:
    (1) Issue a decision that decides the case;
    (2) Hear oral arguments;
    (3) Require that briefs be filed;
    (4) Remand the appeal so that the judge may take further testimony 
or evidence or make further findings or conclusions; or
    (5) Take any other action necessary for final disposition of the 
case.
    (b) The Board may affirm, reverse, modify, or vacate the initial 
decision of the judge, in whole or in part. The Board may issue a final 
decision and,

[[Page 41]]

when appropriate, order a date for compliance with that decision.
    (c) The Board may issue a decision in the form of a precedential 
Opinion and Order or a nonprecedential Order.
    (1) Opinion and Order. An Opinion and Order is a precedential 
decision of the Board and may be appropriately cited or referred to by 
any party.
    (2) Nonprecedential Orders. A nonprecedential Order is one that the 
Board has determined does not add significantly to the body of MSPB case 
law. The Board may, in its discretion, include in nonprecedential Orders 
a discussion of the issue(s) to assist the parties in understanding the 
reason(s) for the Board's disposition in a particular appeal. 
Nonprecedential Orders are not binding on the Board or its 
administrative judges in any future appeals except when it is determined 
they have a preclusive effect on parties under the doctrines of res 
judicata (claim preclusion), collateral estoppel (issue preclusion), 
judicial estoppel, or law of the case. Parties may cite nonprecedential 
Orders, but such orders have no precedential value; the Board and its 
administrative judges are not required to follow or distinguish them in 
any future decisions. In contrast, a precedential decision issued as an 
Opinion and Order has been identified by the Board as significantly 
contributing to the Board's case law.

[76 FR 60707, Sept. 30, 2011, as amended at 77 FR 62370, Oct. 12, 2012]



Sec.  1201.118  Board reopening of final decisions.

    Regardless of any other provision of this part, the Board may at any 
time reopen any appeal in which it has issued a final order or in which 
an initial decision has become the Board's final decision by operation 
of law. The Board will exercise its discretion to reopen an appeal only 
in unusual or extraordinary circumstances and generally within a short 
period of time after the decision becomes final.

[77 FR 62370, Oct. 12, 2012]



Sec.  1201.119  OPM petition for reconsideration.

    (a) Criteria. Under 5 U.S.C. 7703(d), the Director of the Office of 
Personnel Management may file a petition for reconsideration of a Board 
final decision if he or she determines:
    (1) That the Board erred in interpreting a civil service law, rule, 
or regulation affecting personnel management, and
    (2) That the Board's decision will have a substantial impact on a 
civil service law, rule, regulation, or policy directive.
    (b) Time limit. The Director must file the petition for 
reconsideration within 35 days after the date of service of the Board's 
final decision.
    (c) Briefs. After the petition is filed, the Board will make the 
official record relating to the petition for reconsideration available 
to the Director for review. The Director's brief in support of the 
petition for reconsideration must be filed within 20 days after the 
Board makes the record available for review. Any party's opposition to 
the petition for reconsideration must be filed within 25 days from the 
date of service of the Director's brief.
    (d) Stays. If the Director of OPM files a petition for 
reconsideration, he or she also may ask the Board to stay its final 
decision. An application for a stay, with a supporting memorandum, must 
be filed at the same time as the petition for reconsideration.

[54 FR 53504, Dec. 29, 1989. Redesignated at 59 FR 30864, June 16, 1994, 
as amended at 77 FR 62370, Oct. 12, 2012]



Sec.  1201.120  Judicial review.

    Any employee or applicant for employment who is adversely affected 
by a final order or decision of the Board under the provisions of 5 
U.S.C. 7703 may obtain judicial review as provided by 5 U.S.C. 7703. As 
Sec.  1201.175 of this part provides, an appropriate United States 
district court has jurisdiction over a request for judicial review of 
cases involving the kinds of discrimination issues described in 5 U.S.C. 
7702.

[78 FR 39545, July 2, 2013]



          Subpart D_Procedures for Original Jurisdiction Cases

    Source: 62 FR 48451, Sept. 16, 1997, unless otherwise noted.

[[Page 42]]

                                 General



Sec.  1201.121  Scope of jurisdiction; application of subparts B, F, and H.

    (a) Scope. The Board has original jurisdiction over complaints filed 
by the Special Counsel seeking corrective or disciplinary action 
(including complaints alleging a violation of the Hatch Political 
Activities Act), requests by the Special Counsel for stays of certain 
personnel actions, proposed agency actions against administrative law 
judges, and removals of career appointees from the Senior Executive 
Service for performance reasons.
    (b) Application of subparts B, F, and H. (1) Except as otherwise 
expressly provided by this subpart, the regulations in subpart B of this 
part applicable to appellate case processing also apply to original 
jurisdiction cases processed under this subpart.
    (2) Subpart F of this part applies to enforcement proceedings in 
connection with Special Counsel complaints and stay requests, and agency 
actions against administrative law judges, decided under this subpart.
    (3) Subpart H of this part applies to requests for attorney fees or 
compensatory damages in connection with Special Counsel corrective and 
disciplinary action complaints, and agency actions against 
administrative law judges, decided under this subpart. Subpart H of this 
part also applies to requests for consequential damages in connection 
with Special Counsel corrective action complaints decided under this 
subpart.
    (c) The provisions of this subpart do not apply to appeals alleging 
non-compliance with the provisions of chapter 43 of title 38 of the 
United States Code relating to the employment or reemployment rights or 
benefits to which a person is entitled after service in the uniformed 
services, in which the Special Counsel appears as the designated 
representative of the appellant. Such appeals are governed by part 1208 
of this title.

[62 FR 48451, Sept. 16, 1997, as amended at 62 FR 66815, Dec. 22, 1997; 
65 FR 5409, Feb. 4, 2000]

                  Special Counsel Disciplinary Actions



Sec.  1201.122  Filing complaint; serving documents on parties.

    (a) Place of filing. A Special Counsel complaint seeking 
disciplinary action under 5 U.S.C. 1215(a)(1) (including a complaint 
alleging a violation of the Hatch Political Activities Act) must be 
filed with the Clerk of the Board.
    (b) Initial filing and service. The Special Counsel must file a copy 
of the complaint, together with numbered and tabbed exhibits or 
attachments, if any, and a certificate of service listing each party or 
the party's representative. The certificate of service must show the 
last known address, telephone number, and facsimile number of each party 
or representative. The Special Counsel must serve a copy of the 
complaint on each party and the party's representative, as shown on the 
certificate of service.
    (c) Subsequent filings and service. Each party must serve on every 
other party or the party's representative one copy of each of its 
pleadings, as defined by Sec.  1201.4(b). A certificate of service 
describing how and when service was made must accompany each pleading. 
Each party is responsible for notifying the Board and the other parties 
in writing of any change in name, address, telephone number, or 
facsimile number of the party or the party's representative.

[62 FR 48451, Sept. 16, 1997, as amended at 68 FR 59863, Oct. 20, 2003; 
69 FR 57630, Sept. 27, 2004; 77 FR 62370, Oct. 12, 2012]



Sec.  1201.123  Contents of complaint.

    (a) If the Special Counsel determines that the Board should take any 
of the actions listed below, he or she must file a written complaint in 
accordance with Sec.  1201.122 of this part, stating with particularity 
any alleged violations of law or regulation, along with the supporting 
facts.
    (1) Action to discipline an employee alleged to have committed a 
prohibited personnel practice, 5 U.S.C. 1215(a)(1)(A);
    (2) Action to discipline an employee alleged to have violated any 
law, rule, or regulation, or to have engaged in prohibited conduct, 
within the jurisdiction of the Special Counsel under 5

[[Page 43]]

U.S.C. 1216 (including an alleged violation by a Federal or District of 
Columbia government employee involving political activity prohibited 
under 5 U.S.C. 7324), 5 U.S.C. 1215(a)(1)(B), 1216(a), and 1216(c);
    (3) Action to discipline a State or local government employee for an 
alleged violation involving prohibited political activity, 5 U.S.C. 
1505; or
    (4) Action to discipline an employee for an alleged knowing and 
willful refusal or failure to comply with an order of the Board, 5 
U.S.C. 1215(a)(1)(C).
    (b) The administrative law judge to whom the complaint is assigned 
may order the Special Counsel and the responding party to file briefs, 
memoranda, or both in any disciplinary action complaint the Special 
Counsel brings before the Board.



Sec.  1201.124  Rights; answer to complaint.

    (a) Responsibilities of Clerk of the Board. The Clerk of the Board 
shall furnish a copy of the applicable Board regulations to each party 
that is not a Federal, State, or local government agency and shall 
inform such a party of the party's rights under paragraph (b) of this 
section and the requirements regarding the timeliness and content of an 
answer to the Special Counsel's complaint under paragraphs (c) and (d), 
respectively, of this section.
    (b) Rights. When the Special Counsel files a complaint proposing a 
disciplinary action against an employee under 5 U.S.C. 1215(a)(1), the 
employee has the right:
    (1) To file an answer, supported by affidavits and documentary 
evidence;
    (2) To be represented;
    (3) To a hearing on the record before an administrative law judge;
    (4) To a written decision, issued at the earliest practicable date, 
in which the administrative law judge states the reasons for his or her 
decision; and
    (5) To a copy of the administrative law judge's decision and 
subsequent final decision by the Board, if any.
    (c) Filing and default. A party named in a Special Counsel 
disciplinary action complaint may file an answer with the Clerk of the 
Board within 35 days of the date of service of the complaint. If a party 
fails to answer, the failure may constitute waiver of the right to 
contest the allegations in the complaint. Unanswered allegations may be 
considered admitted and may form the basis of the administrative law 
judge's decision.
    (d) Content. An answer must contain a specific denial, admission, or 
explanation of each fact alleged in the complaint. If the respondent has 
no knowledge of a fact, he or she must say so. The respondent may 
include statements of fact and appropriate documentation to support each 
denial or defense. Allegations that are unanswered or admitted in the 
answer may be considered true.



Sec.  1201.125  Administrative law judge.

    (a) An administrative law judge will hear a disciplinary action 
complaint brought by the Special Counsel.
    (b) The administrative law judge will issue an initial decision on 
the complaint pursuant to 5 U.S.C. 557. The applicable provisions of 
Sec. Sec.  1201.111, 1201.112, and 1201.113 of this part govern the 
issuance of initial decisions, the jurisdiction of the judge, and the 
finality of initial decisions. The initial decision will be subject to 
the procedures for a petition for review by the Board under subpart C of 
this part.

[62 FR 48451, Sept. 16, 1997, as amended at 63 FR 42686, Aug. 11, 1998; 
70 FR 30609, May 27, 2005; 78 FR 39545, July 2, 2013]



Sec.  1201.126  Final decisions.

    (a) In any action to discipline an employee, except as provided in 
paragraph (b) of this section, the administrative law judge, or the 
Board on petition for review, may order a removal, a reduction in grade, 
a debarment (not to exceed five years), a suspension, a reprimand, or an 
assessment of a civil penalty not to exceed $1,093, 5 U.S.C. 1215(a)(3), 
7326; 28 U.S.C. 2461 note.
    (b) In any action in which the administrative law judge, or the 
Board on petition for review, finds under 5 U.S.C. 1505 that a State or 
local government employee has violated the Hatch Political Activities 
Act and that the employee's removal is warranted, the administrative law 
judge, or the Board on petition for review, will issue a written 
decision notifying the employing agency and the employee that the 
employee must be removed and not reappointed

[[Page 44]]

within 18 months of the date of the decision. If the agency fails to 
remove the employee, or if it reappoints the employee within 18 months, 
the administrative law judge, or the Board on petition for review, may 
order the Federal entity administering loans or grants to the agency to 
withhold funds from the agency as provided under 5 U.S.C. 1506.

[62 FR 48451, Sept. 16, 1997, as amended at 70 FR 30609, May 27, 2005; 
78 FR 39545, July 2, 2013; 82 FR 25716, June 5, 2017; 83 FR 1174, Jan. 
10, 2018; 84 FR 5584, Feb. 22, 2019]



Sec.  1201.127  Judicial review.

    (a) An employee subject to a final Board decision imposing 
disciplinary action under 5 U.S.C. 1215 may obtain judicial review of 
the decision in the United States Court of Appeals for the Federal 
Circuit, except as provided under paragraph (b) of this section. 5 
U.S.C. 1215(a)(4).
    (b) A party aggrieved by a determination or order of the Board under 
5 U.S.C. 1505 (governing alleged violations of the Hatch Political 
Activities Act by State or local government employees) may obtain 
judicial review in an appropriate United States district court. 5 U.S.C. 
1508.

                   Special Counsel Corrective Actions



Sec.  1201.128  Filing complaint; serving documents on parties.

    (a) Place of filing. A Special Counsel complaint seeking corrective 
action under 5 U.S.C. 1214 must be filed with the Clerk of the Board. 
After the complaint has been assigned to a judge, subsequent pleadings 
must be filed with the Board office where the judge is located.
    (b) Initial filing and service. The Special Counsel must file a copy 
of the complaint, together with numbered and tabbed exhibits or 
attachments, if any, and a certificate of service listing the respondent 
agency or the agency's representative, and each person on whose behalf 
the corrective action is brought.
    (c) Subsequent filings and service. Each party must serve on every 
other party or the party's representative one copy of each of its 
pleadings, as defined by Sec.  1201.4(b). A certificate of service 
describing how and when service was made must accompany each pleading. 
Each party is responsible for notifying the Board and the other parties 
in writing of any change in name, address, telephone number, or 
facsimile number of the party or the party's representative.

[62 FR 48451, Sept. 16, 1997, as amended at 68 FR 59863, Oct. 20, 2003; 
69 FR 57630, Sept. 27, 2004; 77 FR 62370, Oct. 12, 2012]



Sec.  1201.129  Contents of complaint.

    (a) If the Special Counsel determines that the Board should take 
action to require an agency to correct a prohibited personnel practice 
(or a pattern of prohibited personnel practices) under 5 U.S.C. 
1214(b)(4), he or she must file a written complaint in accordance with 
Sec.  1201.128 of this part, stating with particularity any alleged 
violations of law or regulation, along with the supporting facts.
    (b) If the Special Counsel files a corrective action with the Board 
on behalf of an employee, former employee, or applicant for employment 
who has sought corrective action from the Board directly under 5 U.S.C. 
1214(a)(3), the Special Counsel must provide evidence that the employee, 
former employee, or applicant has consented to the Special Counsel's 
seeking corrective action. 5 U.S.C. 1214(a)(4).
    (c) The judge to whom the complaint is assigned may order the 
Special Counsel and the respondent agency to file briefs, memoranda, or 
both in any corrective action complaint the Special Counsel brings 
before the Board.



Sec.  1201.130  Rights; answer to complaint.

    (a) Rights. (1) A person on whose behalf the Special Counsel brings 
a corrective action has a right to request intervention in the 
proceeding in accordance with the regulations in Sec.  1201.34 of this 
part. The Clerk of the Board shall notify each such person of this 
right.
    (2) When the Special Counsel files a complaint seeking corrective 
action, the judge to whom the complaint is assigned shall provide an 
opportunity for oral or written comments by the Special Counsel, the 
agency involved, and the Office of Personnel Management. 5 U.S.C. 
1214(b)(3)(A).

[[Page 45]]

    (3) The judge to whom the complaint is assigned shall provide a 
person alleged to have been the subject of any prohibited personnel 
practice alleged in the complaint the opportunity to make written 
comments, regardless of whether that person has requested and been 
granted intervenor status. 5 U.S.C. 1214(b)(3)(B).
    (b) Filing and default. An agency named as respondent in a Special 
Counsel corrective action complaint may file an answer with the judge to 
whom the complaint is assigned within 35 days of the date of service of 
the complaint. If the agency fails to answer, the failure may constitute 
waiver of the right to contest the allegations in the complaint. 
Unanswered allegations may be considered admitted and may form the basis 
of the judge's decision.
    (c) Content. An answer must contain a specific denial, admission, or 
explanation of each fact alleged in the complaint. If the respondent 
agency has no knowledge of a fact, it must say so. The respondent may 
include statements of fact and appropriate documentation to support each 
denial or defense. Allegations that are unanswered or admitted in the 
answer may be considered true.



Sec.  1201.131  Judge.

    (a) The Board will assign a corrective action complaint brought by 
the Special Counsel under this subpart to a judge, as defined at Sec.  
1201.4(a) of this part, for hearing.
    (b) The judge will issue an initial decision on the complaint 
pursuant to 5 U.S.C. 557. The applicable provisions of Sec. Sec.  
1201.111, 1201.112, and 1201.113 of this part govern the issuance of 
initial decisions, the jurisdiction of the judge, and the finality of 
initial decisions. The initial decision will be subject to the 
procedures for a petition for review by the Board under subpart C of 
this part.

[62 FR 48451, Sept. 16, 1997, as amended at 62 FR 66815, Dec. 22, 1997]



Sec.  1201.132  Final decisions.

    (a) In any Special Counsel complaint seeking corrective action based 
on an allegation that a prohibited personnel practice has been 
committed, the judge, or the Board on petition for review, may order 
appropriate corrective action. 5 U.S.C. 1214(b)(4)(A).
    (b)(1) Subject to the provisions of paragraph (b)(2) of this 
section, in any case involving an alleged prohibited personnel practice 
described in 5 U.S.C. 2302(b)(8) or 2302(b)(9)(A)(i), (B), (C), or (D), 
the judge, or the Board on petition for review, will order appropriate 
corrective action if the Special Counsel demonstrates that a disclosure 
or protected activity described under 5 U.S.C. 2302(b)(8) or 
2302(b)(9)(A)(i), (B), (C), or (D) was a contributing factor in the 
personnel action that was taken or will be taken against the individual.
    (2) Corrective action under paragraph (b)(1) of this section may not 
be ordered if the agency demonstrates by clear and convincing evidence 
that it would have taken the same personnel action in the absence of 
such disclosure or protected activity. 5 U.S.C. 1214(b)(4)(B).

[62 FR 48451, Sept. 16, 1997, as amended at 78 FR 39545, July 2, 2013]



Sec.  1201.133  Judicial review.

    An employee, former employee, or applicant for employment who is 
adversely affected by a final Board decision on a corrective action 
complaint brought by the Special Counsel may obtain judicial review of 
the decision as provided by 5 U.S.C. 7703.

[78 FR 39545, July 2, 2013]

                   Special Counsel Requests for Stays



Sec.  1201.134  Deciding official; filing stay request; 
serving documents on parties.

    (a) Request to stay personnel action. Under 5 U.S.C. 1214(b)(1), the 
Special Counsel may seek to stay a personnel action if the Special 
Counsel determines that there are reasonable grounds to believe that the 
action was taken or will be taken as a result of a prohibited personnel 
practice.
    (b) Deciding official. Any member of the Board may delegate to an 
administrative law judge the authority to decide a Special Counsel 
request for an initial stay. The Board may delegate to a member of the 
Board the authority to rule on any matter related to a stay that has 
been granted to the Special

[[Page 46]]

Counsel, including a motion for extension or termination of the stay.
    (c) Place of filing. A Special Counsel stay request must be filed 
with the Clerk of the Board.
    (d) Initial filing and service. The Special Counsel must file a copy 
of the request, together with numbered and tabbed exhibits or 
attachments, if any, and a certificate of service listing the respondent 
agency or the agency's representative. The certificate of service must 
show the last known address, telephone number, and facsimile number of 
the agency or its representative. The Special Counsel must serve a copy 
of the request on the agency or its representative, as shown on the 
certificate of service.
    (e) Subsequent filings and service. Each party must serve on every 
other party or the party's representative one copy of each of its 
pleadings, as defined by Sec.  1201.4(b). A certificate of service 
describing how and when service was made must accompany each pleading. 
Each party is responsible for notifying the Board and the other parties 
in writing of any change in name, address, telephone number, or 
facsimile number of the party or the party's representative.

[62 FR 48451, Sept. 16, 1997, as amended at 63 FR 42686, Aug. 11, 1998; 
68 FR 59863, Oct. 20, 2003; 69 FR 57630, Sept. 27, 2004; 73 FR 10130, 
Feb. 26, 2008; 77 FR 62370, Oct. 12, 2012]



Sec.  1201.135  Contents of stay request.

    The Special Counsel, or that official's representative, must sign 
each stay request, and must include the following information in the 
request:
    (a) The names of the parties;
    (b) The agency and officials involved;
    (c) The nature of the action to be stayed;
    (d) A concise statement of facts justifying the charge that the 
personnel action was or will be the result of a prohibited personnel 
practice; and
    (e) The laws or regulations that were violated, or that will be 
violated if the stay is not issued.



Sec.  1201.136  Action on stay request.

    (a) Initial stay. A Special Counsel request for an initial stay of 
45 days will be granted within three working days after the filing of 
the request, unless, under the facts and circumstances, the requested 
stay would not be appropriate. Unless the stay is denied within the 3-
day period, it is considered granted by operation of law.
    (b) Extension of stay. Upon the Special Counsel's request, a stay 
granted under 5 U.S.C. 1214(b)(1)(A) may be extended for an appropriate 
period of time, but only after providing the agency with an opportunity 
to comment on the request. Any request for an extension of a stay under 
5 U.S.C. 1214(b)(1)(B) must be received by the Board and the agency no 
later than 15 days before the expiration date of the stay. A brief 
describing the facts and any relevant legal authority that should be 
considered must accompany the request for extension. Any response by the 
agency must be received by the Board no later than 8 days before the 
expiration date of the stay.
    (c) Evidence of compliance with a stay. Within five working days 
from the date of a stay order or an order extending a stay, the agency 
ordered to stay a personnel action must file evidence setting forth 
facts and circumstances demonstrating compliance with the order.
    (d) Termination of stay. A stay may be terminated at any time, 
except that a stay may not be terminated:
    (1) On the motion of an agency, or on the deciding official's own 
motion, without first providing notice and opportunity for oral or 
written comments to the Special Counsel and the individual on whose 
behalf the stay was ordered; or
    (2) On the motion of the Special Counsel without first providing 
notice and opportunity for oral or written comments to the individual on 
whose behalf the stay was ordered. 5 U.S.C. 1214(b)(1)(D).
    (e) Additional information. At any time, where appropriate, the 
Special Counsel, the agency, or both may be required to appear and 
present further information or explanation regarding a request for a 
stay, to file supplemental briefs or memoranda, or to supply factual 
information needed to make a decision regarding a stay.

[62 FR 48451, Sept. 16, 1997, as amended at 63 FR 42686, Aug. 11, 1998]

[[Page 47]]

                Actions Against Administrative Law Judges



Sec.  1201.137  Covered actions; filing complaint; 
serving documents on parties.

    (a) Covered actions. The jurisdiction of the Board under 5 U.S.C. 
7521 and this subpart with respect to actions against administrative law 
judges is limited to proposals by an agency to take any of the following 
actions against an administrative law judge:
    (1) Removal;
    (2) Suspension;
    (3) Reduction in grade;
    (4) Reduction in pay; and
    (5) Furlough of 30 days or less.
    (b) Place of filing. To initiate an action against an administrative 
law judge under this subpart, an agency must file a complaint with the 
Clerk of the Board.
    (c) Initial filing and service. The agency must file a copy of the 
complaint, together with numbered and tabbed exhibits or attachments, if 
any, and a certificate of service listing each party or the party's 
representative. The certificate of service must show the last known 
address, telephone number, and facsimile number of each party or 
representative. The agency must serve a copy of the complaint on each 
party and the party's representative, as shown on the certificate of 
service.
    (d) Subsequent filings and service. Each party must serve on every 
other party or the party's representative one copy of each of its 
pleadings, as defined by Sec.  1201.4(b). A certificate of service 
describing how and when service was made must accompany each pleading. 
Each party is responsible for notifying the Board and the other parties 
in writing of any change in name, address, telephone number, or 
facsimile number of the party or the party's representative.

[62 FR 48451, Sept. 16, 1997, as amended at 68 FR 59863, Oct. 20, 2003; 
69 FR 57630, Sept. 27, 2004; 73 FR 10130, Feb. 26, 2008; 77 FR 62370, 
Oct. 12, 2012]



Sec.  1201.138  Contents of complaint.

    A complaint filed under this section must describe with 
particularity the facts that support the proposed agency action.



Sec.  1201.139  Rights; answer to complaint.

    (a) Responsibilities of Clerk of the Board. The Clerk of the Board 
shall furnish a copy of the applicable Board regulations to each 
administrative law judge named as a respondent in the complaint and 
shall inform each respondent of his or her rights under paragraph (b) of 
this section and the requirements regarding the timeliness and content 
of an answer to the agency's complaint under paragraphs (c) and (d), 
respectively, of this section.
    (b) Rights. When an agency files a complaint proposing an action 
against an administrative law judge under 5 U.S.C. 7521 and this 
subpart, the administrative law judge has the right:
    (1) To file an answer, supported by affidavits and documentary 
evidence;
    (2) To be represented;
    (3) To a hearing on the record before an administrative law judge;
    (4) To a written decision, issued at the earliest practicable date, 
in which the administrative law judge states the reasons for his or her 
decision; and
    (5) To a copy of the administrative law judge's decision and 
subsequent final decision by the Board, if any.
    (c) Filing and default. A respondent named in an agency complaint 
may file an answer with the Clerk of the Board within 35 days of the 
date of service of the complaint. If a respondent fails to answer, the 
failure may constitute waiver of the right to contest the allegations in 
the complaint. Unanswered allegations may be considered admitted and may 
form the basis of the administrative law judge's decision.
    (d) Content. An answer must contain a specific denial, admission, or 
explanation of each fact alleged in the complaint. If the respondent has 
no knowledge of a fact, he or she must say so. The respondent may 
include statements of fact and appropriate documentation to support each 
denial or defense. Allegations that are unanswered or admitted in the 
answer may be considered true.



Sec.  1201.140  Judge; requirement for finding of good cause.

    (a) Judge. (1) An administrative law judge will hear an action 
brought by an employing agency under this subpart

[[Page 48]]

against a respondent administrative law judge.
    (2) The judge will issue an initial decision pursuant to 5 U.S.C. 
557. The applicable provisions of Sec. Sec.  1201.111, 1201.112, and 
1201.113 of this part govern the issuance of initial decisions, the 
jurisdiction of the judge, and the finality of initial decisions. The 
initial decision will be subject to the procedures for a petition for 
review by the Board under subpart C of this part.
    (b) Requirement for finding of good cause. A decision on a proposed 
agency action under this subpart against an administrative law judge 
will authorize the agency to take a disciplinary action, and will 
specify the penalty to be imposed, only after a finding of good cause as 
required by 5 U.S.C. 7521 has been made.



Sec.  1201.141  Judicial review.

    An administrative law judge subject to a final Board decision 
authorizing a proposed agency action under 5 U.S.C. 7521 may obtain 
judicial review of the decision in the United States Court of Appeals 
for the Federal Circuit. 5 U.S.C. 7703.



Sec.  1201.142  Actions filed by administrative law judges.

    An administrative law judge who alleges a constructive removal or 
other action by an agency in violation of 5 U.S.C. 7521 may file a 
complaint with the Board under this subpart. The filing and service 
requirements of Sec.  1201.137 of this part apply. Such complaints shall 
be adjudicated in the same manner as agency complaints under this 
subpart.

[77 FR 62370, Oct. 12, 2012]

                Removal From the Senior Executive Service



Sec.  1201.143  Right to hearing; filing complaint; 
serving documents on parties.

    (a) Right to hearing. If an agency proposes to remove a career 
appointee from the Senior Executive Service under 5 U.S.C. 3592(a) (2) 
and 5 CFR 359.502, and to place that employee in another civil service 
position, the appointee may request an informal hearing before an 
official designated by the Board. Under 5 CFR 359.502, the agency 
proposing the removal must provide the appointee 30 days advance notice 
and must advise the appointee of the right to request a hearing. If the 
appointee files the request at least 15 days before the effective date 
of the proposed removal, the request will be granted.
    (b) Place of filing. A request for an informal hearing under 
paragraph (a) of this section must be filed with the Clerk of the Board. 
After the request has been assigned to a judge, subsequent pleadings 
must be filed with the Board office where the judge is located.
    (c) Initial filing and service. Except when filed electronically 
under 1201.14, the appointee must file two copies of the request, 
together with numbered and tabbed exhibits or attachments, if any, and a 
certificate of service listing the agency proposing the appointee's 
removal or the agency's representative. The certificate of service must 
show the last known address, telephone number, and facsimile number of 
the agency or its representative. The appointee must serve a copy of the 
request on the agency or its representative, as shown on the certificate 
of service.
    (d) Subsequent filings and service. Each party must serve on every 
other party or the party's representative one copy of each of its 
pleadings, as defined by Sec.  1201.4(b). A certificate of service 
describing how and when service was made must accompany each pleading. 
Each party is responsible for notifying the Board and the other parties 
in writing of any change in name, address, telephone number, or 
facsimile number of the party or the party's representative.

[62 FR 48451, Sept. 16, 1997, as amended at 68 FR 59864, Oct. 20, 2003; 
69 FR 57630, Sept. 27, 2004; 73 FR 10130, Feb. 26, 2008; 77 FR 62371, 
Oct. 12, 2012]



Sec.  1201.144  Hearing procedures; referring the record.

    (a) The official designated to hold an informal hearing requested by 
a career appointee whose removal from the Senior Executive Service has 
been proposed under 5 U.S.C. 3592(a)(2) and 5 CFR 359.502 will be a 
judge, as defined at Sec.  1201.4(a) of this part.

[[Page 49]]

    (b) The appointee, the appointee's representative, or both may 
appear and present arguments in an informal hearing before the judge. A 
verbatim record of the proceeding will be made. The appointee has no 
other procedural rights before the judge or the Board.
    (c) The judge will refer a copy of the record to the Special 
Counsel, the Office of Personnel Management, and the employing agency 
for whatever action may be appropriate.



Sec.  1201.145  No appeal.

    There is no right under 5 U.S.C. 7703 to appeal the agency's action 
or any action by the judge or the Board in cases arising under Sec.  
1201.143(a) of this part. The removal action will not be delayed as a 
result of the hearing.

                     Requests for Protective Orders



Sec.  1201.146  Requests for protective orders by the Special Counsel.

    (a) Under 5 U.S.C. 1204(e)(1)(B), the Board may issue any order that 
may be necessary to protect a witness or other individual from 
harassment during an investigation by the Special Counsel or during the 
pendency of any proceeding before the Board, except that an agency, 
other than the Office of the Special Counsel, may not request a 
protective order with respect to an investigation by the Special Counsel 
during such investigation.
    (b) Any motion by the Special Counsel requesting a protective order 
must include a concise statement of reasons justifying the motion, 
together with any relevant documentary evidence. Where the request is 
made in connection with a pending Special Counsel proceeding, the motion 
must be filed as early in the proceeding as practicable.
    (c) Where there is a pending Special Counsel proceeding, a Special 
Counsel motion requesting a protective order must be filed with the 
judge conducting the proceeding, and the judge will rule on the motion. 
Where there is no pending Special Counsel proceeding, a Special Counsel 
motion requesting a protective order must be filed with the Clerk of the 
Board, and the Board will designate a judge, as defined at Sec.  
1201.4(a) of this part, to rule on the motion.



Sec.  1201.147  Requests for protective orders by persons 
other than the Special Counsel.

    Requests for protective orders by persons other than the Special 
Counsel in connection with pending original jurisdiction proceedings are 
governed by Sec.  1201.55(d) of this part.



Sec.  1201.148  Enforcement of protective orders.

    A protective order issued by a judge or the Board under this subpart 
may be enforced in the same manner as provided under subpart F of this 
part for Board final decisions and orders.



 Subpart E_Procedures for Cases Involving Allegations of Discrimination



Sec.  1201.151  Scope and policy.

    (a) Scope. (1) The rules in this subpart implement 5 U.S.C. 7702. 
They apply to any case in which an employee or applicant for employment 
alleges that a personnel action appealable to the Board was based, in 
whole or in part, on prohibited discrimination.
    (2) ``Prohibited discrimination,'' as that term is used in this 
subpart, means discrimination prohibited by:
    (i) Section 717 of the Civil Rights Act of 1964, as amended (42 
U.S.C. 2000e-16(a));
    (ii) Section 6(d) of the Fair Labor Standards Act of 1938, as 
amended (29 U.S.C. 206(d));
    (iii) Section 501 of the Rehabilitation Act of 1973, as amended (29 
U.S.C. 791);
    (iv) Sections 12 and 15 of the Age Discrimination in Employment Act 
of 1967, as amended (29 U.S.C. 631, 633a); or
    (v) Any rule, regulation, or policy directive prescribed under any 
provision of law described in paragraphs (a)(2) (i) through (iv) of this 
section.
    (b) Policy. The Board's policy is to adjudicate impartially, 
thoroughly, and fairly all issues raised under this subpart.



Sec.  1201.152  Compliance with subpart B procedures.

    Unless this subpart expressly provides otherwise, all actions 
involving allegations of prohibited discrimination must comply with the 
regulations

[[Page 50]]

that are included in subpart B of this part.



Sec.  1201.153  Contents of appeal.

    (a) Contents. An appeal raising issues of prohibited discrimination 
must comply with Sec.  1201.24 of this part, with the following 
exceptions:
    (1) The appeal must state that there was discrimination in 
connection with the matter appealed, and it must state specifically how 
the agency discriminated against the appellant; and
    (2) The appeal must state whether the appellant has filed a 
grievance under a negotiated grievance procedure or a formal 
discrimination complaint with any agency regarding the matter being 
appealed to the Board. If he or she has done so, the appeal must state 
the date on which the appellant filed the complaint or grievance, and it 
must describe any action that the agency took in response to the 
complaint or grievance.
    (b) Use of Board form or Internet filing option. An appellant may 
comply with paragraph (a) of this section by completing MSPB Form 185, 
or by completing all requests for information marked as required at the 
e-Appeal site (https://e-appeal.mspb.gov). MSPB Form 185 can be accessed 
at the Board's Web site (http://www.mspb.gov).

[54 FR 53504, Dec. 29, 1989, as amended at 68 FR 59864, Oct. 20, 2003; 
69 FR 57631, Sept. 27, 2004; 77 FR 62371, Oct. 12, 2012]



Sec.  1201.154  Time for filing appeal.

    For purposes of this section, the date an appellant receives the 
agency's decision is determined according to the standard set forth at 
1201.22(b)(3) of this part. Appellants who file appeals raising issues 
of prohibited discrimination in connection with a matter otherwise 
appealable to the Board must comply with the following time limits:
    (a) Where the appellant has been subject to an action appealable to 
the Board, he or she may either file a timely complaint of 
discrimination with the agency or file an appeal with the Board no later 
than 30 days after the effective date, if any, of the action being 
appealed, or 30 days after the date of the appellant's receipt of the 
agency's decision on the appealable action, whichever is later.
    (b) If the appellant has filed a timely formal complaint of 
discrimination with the agency:
    (1) An appeal must be filed within 30 days after the appellant 
receives the agency resolution or final decision on the discrimination 
issue; or
    (2) If the agency has not resolved the matter or issued a final 
decision on the formal complaint within 120 days, the appellant may 
appeal the matter directly to the Board at any time after the expiration 
of 120 calendar days. Once the agency resolves the matter or issues a 
final decision on the formal complaint, an appeal must be filed within 
30 days after the appellant receives the agency resolution or final 
decision on the discrimination issue.
    (c) If the appellant files an appeal prematurely under this subpart, 
the judge will dismiss the appeal without prejudice to its later 
refiling under Sec.  1201.22 of this part. If holding the appeal for a 
short time would allow it to become timely, the judge may hold the 
appeal rather than dismiss it.

[54 FR 53504, Dec. 29, 1989, as amended at 59 FR 31109, June 17, 1994; 
62 FR 59992, Nov. 6, 1997; 65 FR 25624, May 3, 2000; 73 FR 6834, Feb. 6, 
2008; 77 FR 62371, Oct. 12, 2012]



Sec.  1201.155  Requests for review of arbitrators' decisions.

    (a) Source and applicability. (1) Under paragraph (d) of 5 U.S.C. 
7121, an employee who believes he or she has been subjected to 
discrimination within the meaning of 5 U.S.C. 2302(b)(1), and who may 
raise the matter under either a statutory procedure such as 5 U.S.C. 
7701 or under a negotiated grievance procedure, must make an election 
between the two procedures. The election of the negotiated grievance 
procedure ``in no manner prejudices'' the employee's right to request 
Board review of the final decision pursuant to 5 U.S.C. 7702. Subsection 
(a)(1) of section 7702 provides that, ``[n]otwithstanding any other 
provision of law,'' when an employee who has been subjected to an action 
that is appealable to the Board and who alleges that the action was the 
result of discrimination within the meaning of 5 U.S.C. 2302(b)(1), the 
Board will decide both the issue of discrimination and the appealable 
action

[[Page 51]]

in accordance with the Board's appellate procedures under section 7701.
    (2) This section does not apply to employees of the Postal Service 
or to other employees excluded from the coverage of the Federal labor 
management laws at chapter 71 of title 5, United States Code.
    (b) When filed. The appellant's request for Board review must be 
filed within 35 days after the date of issuance of the decision or, if 
the appellant shows that he or she received the decision more than 5 
days after the date of issuance, within 30 days after the date the 
appellant received the decision.
    (c) Scope of Board review. If the negotiated grievance procedure 
permits allegations of discrimination, the Board will review only those 
claims of discrimination that were raised in the negotiated grievance 
procedure. If the negotiated grievance procedure does not permit 
allegations of discrimination to be raised, the appellant may raise such 
claims before the Board.
    (d) Contents. The appellant must file the request with the Clerk of 
the Board, Merit Systems Protection Board, 1615 M Street NW., 
Washington, DC 20419. The request for review must contain:
    (1) A statement of the grounds on which review is requested;
    (2) References to evidence of record or rulings related to the 
issues before the Board;
    (3) Arguments in support of the stated grounds that refer 
specifically to relevant documents and that include relevant citations 
of authority; and
    (4) Legible copies of the final grievance or arbitration decision, 
the agency decision to take the action, and other relevant documents. 
Those documents may include a transcript or recording of the hearing.
    (e) Development of the record. The Board, in its discretion, may 
develop the record as to a claim of prohibited discrimination by 
ordering the parties to submit additional evidence or forwarding the 
request for review to a judge to conduct a hearing.
    (f) Closing of the record. The record will close upon expiration of 
the period for filing the response to the request for review, or to the 
brief on intervention, if any, or on any other date the Board sets for 
this purpose. Once the record closes, no additional evidence or argument 
will be accepted unless the party submitting it shows that the evidence 
was not readily available before the record closed.

[77 FR 62371, Oct. 12, 2012]



Sec.  1201.156  Time for processing appeals involving allegations 
of discrimination.

    (a) Issue raised in appeal. When an appellant alleges prohibited 
discrimination in the appeal, the judge will decide both the issue of 
discrimination and the appealable action within 120 days after the 
appeal is filed.
    (b) Issue not raised in appeal. When an appellant has not alleged 
prohibited discrimination in the appeal, but has raised the issue later 
in the proceeding, the judge will decide both the issue of 
discrimination and the appealable action within 120 days after the issue 
is raised.
    (c) Discrimination issue remanded to agency. When the judge remands 
an issue of discrimination to the agency, adjudication will be completed 
within 120 days after the agency completes its action and returns the 
case to the Board.



Sec.  1201.157  Notice of right to judicial review.

    Any final decision of the Board under 5 U.S.C. 7702 will notify the 
appellant of his or her right, within 30 days after receiving the 
Board's final decision, to petition the Equal Employment Opportunity 
Commission to consider the Board's decision, or to file a civil action 
in an appropriate United States district court. If an appellant elects 
to waive the discrimination issue, an appeal may be filed with the 
United States Court of Appeals for the Federal Circuit as stated in 
Sec.  1201.120 of this part.

[54 FR 53504, Dec. 29, 1989, as amended at 63 FR 41179, Aug. 3, 1998]

[[Page 52]]

                        Review of Board Decision



Sec.  1201.161  Action by the Equal Employment Opportunity Commission; 
judicial review.

    (a) Time limit for determination. In cases in which an appellant 
petitions the Equal Employment Opportunity Commission (Commission) for 
consideration of the Board's decision under 5 U.S.C. 7702(b)(2), the 
Commission will determine, within 30 days after the date of the 
petition, whether it will consider the decision.
    (b) Judicial review. The Board's decision will become judicially 
reviewable on:
    (1) The date on which the decision is issued, if the appellant does 
not file a petition with the Commission under 5 U.S.C. 7702(b)(1); or
    (2) The date of the Commission's decision that it will not consider 
the petition filed under 5 U.S.C. 7702(b)(2).
    (c) Commission processing and time limits. If the Commission decides 
to consider the decision of the Board, within 60 days after making its 
decision it will complete its consideration and either:
    (1) Concur in the decision of the Board; or
    (2) Issue in writing and forward to the Board for its action under 
Sec.  1201.162 of this subpart another decision, which differs from the 
decision of the Board to the extent that the Commission finds that, as a 
matter of law:
    (i) The decision of the Board constitutes an incorrect 
interpretation of any provision of any law, rule, regulation, or policy 
directive related to prohibited discrimination; or
    (ii) The evidence in the record as a whole does not support the 
decision involving that provision.
    (d) Transmittal of record. The Board will transmit a copy of its 
record to the Commission upon request.
    (e) Development of additional evidence. When asked by the Commission 
to do so, the Board or a judge will develop additional evidence 
necessary to supplement the record. This action will be completed within 
a period that will permit the Commission to make its decision within the 
statutory 60-day time limit referred to in paragraph (c) of this 
section. The Board or the judge may schedule additional proceedings if 
necessary in order to comply with the Commission's request.
    (f) Commission concurrence in Board decision. If the Commission 
concurs in the decision of the Board under 5 U.S.C. 7702(b)(3)(A), the 
appellant may file suit in an appropriate United States district court.



Sec.  1201.162  Board action on the Commission decision; judicial review.

    (a) Board decision. Within 30 days after receipt of a decision of 
the Commission issued under 1201.161(c)(2), the Board shall consider the 
decision and:
    (1) Concur and adopt in whole the decision of the Commission; or
    (2) To the extent that the Board finds that, as a matter of law:
    (i) The Commission decision is based on an incorrect interpretation 
of any provision of any civil service law, rule, regulation, or policy 
directive, or
    (ii) The evidence in the record as a whole does not support the 
Commission decision involving that provision, it may reaffirm the 
decision of the Board. In doing so, it may make revisions in the 
decision that it determines are appropriate.
    (b) Judicial review. If the Board concurs in or adopts the decision 
of the Commission under paragraph (a)(1) of this section, the decision 
of the Board is a judicially reviewable action.

                              Special Panel



Sec.  1201.171  Referral of case to Special Panel.

    If the Board reaffirms its decision under Sec.  1201.162(a)(2) of 
this part with or without modification, it will certify the matter 
immediately to a Special Panel established under 5 U.S.C. 7702(d). Upon 
certification, the Board, within 5 days (excluding Saturdays, Sundays, 
and Federal holidays), will transmit the administrative record in the 
proceeding to the Chairman of the Special Panel and to the Commission. 
That record will include the following:
    (a) The factual record compiled under this section, which will 
include a transcript of any hearing;
    (b) The decisions issued by the Board and the Commission under 5 
U.S.C. 7702; and

[[Page 53]]

    (c) A transcript of oral arguments made, or legal briefs filed, 
before the Board or the Commission.



Sec.  1201.172  Organization of Special Panel; designation of members.

    (a) A Special Panel is composed of:
    (1) A Chairman, appointed by the President with the advice and 
consent of the Senate, whose term is six (6) years;
    (2) One member of the Board, designated by the Chairman of the Board 
each time a Panel is convened;
    (3) One member of the Commission, designated by the Chairman of the 
Commission each time a Panel is convened.
    (b) Designation of Special Panel members--(1) Time of designation. 
Within 5 days of certification of a case to a Special Panel, the 
Chairman of Board and the Chairman of the Commission each will designate 
one member from his or her agency to serve on the Special Panel.
    (2) Manner of designation. Letters designating the Panel members 
will be served on the Chairman of the Panel and on the parties to the 
appeal.



Sec.  1201.173  Practices and procedures of Special Panel.

    (a) Scope. The rules in this subpart apply to proceedings before a 
Special Panel.
    (b) Suspension of rules. Unless a rule is required by statute, the 
Chairman of a Special Panel may suspend the rule, in the interest of 
expediting a decision or for other good cause shown, and may conduct the 
proceedings in a manner he or she directs. The Chairman may take this 
action at the request of a party, or on his or her own motion.
    (c) Time limit for proceedings. In accordance with 5 U.S.C. 
7702(d)(2)(A), the Special Panel will issue a decision within 45 days 
after a matter has been certified to it.
    (d) Administrative assistance to the Special Panel. (1) The Board 
and the Commission will provide the Panel with the administrative 
resources that the Chairman of the Special Panel determines are 
reasonable and necessary.
    (2) Assistance will include, but is not limited to, processing 
vouchers for pay and travel expenses.
    (3) The Board and the Commission are responsible for all 
administrative costs the Special Panel incurs, and, to the extent 
practicable, they will divide equally the costs of providing 
administrative assistance. If the Board and the Commission disagree on 
the manner in which costs are to be divided, the Chairman of the Special 
Panel will resolve the disagreement.
    (e) Maintaining the official record. The Board will maintain the 
official record of the appeal. It will transmit two copies of each 
submission that is filed to each member of the Special Panel in an 
expeditious manner.
    (f) Filing and service of pleadings. (1) The parties must file the 
original and six copies of each submission with the Clerk, Merit Systems 
Protection Board, 1615 M Street, NW., Washington, DC 20419. The Office 
of the Clerk will serve one copy of each submission on the other 
parties.
    (2) A certificate of service specifying how and when service was 
made must accompany all submissions of the parties.
    (3) Service may be made by mail or by personal delivery during the 
Board's normal business hours (8:30 a.m. to 5:00 p.m.). Because of the 
short statutory time limit for processing these cases, parties must file 
their submissions by overnight Express Mail, provided by the U.S. Postal 
Service, if they file their submissions by mail.
    (4) A submission filed by Express Mail is considered to have been 
filed on the date of the Express Mail Order. A submission that is 
delivered personally is considered to have been filed on the date the 
Office of the Clerk of the Board receives it.
    (g) Briefs and responsive pleadings. If the parties wish to submit 
written argument, they may file briefs with the Special Panel within 15 
days after the date of the Board's certification order. Because of the 
short statutory time limit for processing these cases, the Special Panel 
ordinarily will not permit responsive pleadings.
    (h) Oral argument. The parties have the right to present oral 
argument. Parties wishing to exercise this right must indicate this 
desire when they file their briefs or, if no briefs are filed, within 15 
days after the date of the

[[Page 54]]

Board's certification order. Upon receiving a request for argument, the 
Chairman of the Special Panel will determine the time and place for 
argument and the amount of time to be allowed each side, and he or she 
will provide this information to the parties.
    (i) Postargument submission. Because of the short statutory time 
limit for processing these cases, the parties may not file postargument 
submissions unless the Chairman of the Special Panel permits those 
submissions.
    (j) Procedural matters. Any procedural matters not addressed in 
these regulations will be resolved by written order of the Chairman of 
the Special Panel.
    (k) Electronic filing. Pleadings in matters before the Special Panel 
may not be filed or served in electronic form.

[54 FR 53504, Dec. 29, 1989, as amended at 65 FR 48885, Aug. 10, 2000; 
68 FR 59864, Oct. 20, 2003; 69 FR 57631, Sept. 27, 2004]



Sec.  1201.174  Enforcing the Special Panel decision.

    The Board, upon receipt of the decision of the Special Panel, will 
order the agency concerned to take any action appropriate to carry out 
the decision of the Panel. The Board's regulations regarding enforcement 
of a final order of the Board apply to this matter. These regulations 
are set out in subpart F of this part.



Sec.  1201.175  Judicial review of cases decided under 5 U.S.C. 7702.

    (a) Place and type of review. The appropriate United States district 
court is authorized to conduct all judicial review of cases decided 
under 5 U.S.C. 7702. Those cases include appeals from actions taken 
under the following provisions: Section 717(c) of the Civil Rights Act 
of 1964, as amended (42 U.S.C. 2000e-16(c)); section 15(c) of the Age 
Discrimination in Employment Act of 1967, as amended (29 U.S.C. 
633a(c)); and section 15(b) of the Fair Labor Standards Act of 1938, as 
amended (29 U.S.C. 216(b)).
    (b) Time for filing request. Regardless of any other provision of 
law, requests for judicial review of all cases decided under 5 U.S.C. 
7702 must be filed within 30 days after the appellant received notice of 
the judicially reviewable action.



           Subpart F_Enforcement of Final Decisions and Orders



Sec.  1201.181  Authority and explanation.

    (a) Authority. Under 5 U.S.C. 1204(a)(2), the Board has the 
authority to order any Federal agency or employee to comply with 
decisions and orders issued under its jurisdiction and the authority to 
enforce compliance with its orders and decisions. The Board's decisions 
and orders, when appropriate, will contain a notice of the Board's 
enforcement authority.
    (b) Requirements for parties. The parties are expected to cooperate 
fully with each other so that compliance with the Board's orders and 
decisions can be accomplished promptly and in accordance with the laws, 
rules, and regulations that apply to individual cases. Agencies must 
promptly inform an appellant of actions taken to comply and must inform 
the appellant when it believes compliance is complete. Appellants must 
provide agencies with all information necessary for compliance and 
should monitor the agency's progress towards compliance.

[77 FR 62371, Oct. 12, 2012]



Sec.  1201.182  Petition for enforcement.

    (a) Appellate jurisdiction. Any party may petition the Board for 
enforcement of a final decision or order issued under the Board's 
appellate jurisdiction, or for enforcement of the terms of a settlement 
agreement that has been entered into the record for the purpose of 
enforcement in an order or decision under the Board's appellate 
jurisdiction. The petition must be filed promptly with the regional or 
field office that issued the initial decision; a copy of it must be 
served on the other party or that party's representative; and it must 
describe specifically the reasons the petitioning party believes there 
is noncompliance. The petition also must include the date and results of 
any communications regarding compliance. Any petition for enforcement 
that is filed more than 30 days after the date of service of the 
agency's notice that it has complied must contain a statement and 
evidence showing good cause for the delay and a request for an

[[Page 55]]

extension of time for filing the petition.
    (b) Original jurisdiction. Any party seeking enforcement of a final 
Board decision or order issued under its original jurisdiction or 
enforcement of the terms of settlement agreement entered into the record 
for the purpose of enforcement in an order or decision issued under its 
original jurisdiction must file a petition for enforcement with the 
Clerk of the Board and must serve a copy of that petition on the other 
party or that party's representative. The petition must describe 
specifically the reasons why the petitioning party believes there is 
noncompliance.
    (c) Petition by an employee other than a party. (1) Under 5 U.S.C. 
1204(e)(2)(B), any employee who is aggrieved by the failure of any other 
employee to comply with an order of the Board may petition the Board for 
enforcement. Except for a petition filed under paragraph (c)(2) or 
(c)(3) of this section, the Board will entertain a petition for 
enforcement from an aggrieved employee who is not a party only if the 
employee seeks and is granted party status as a permissive intervenor 
under Sec.  1201.34(c) of this part. The employee must file a motion to 
intervene at the time of filing the petition for enforcement. The 
petition for enforcement must describe specifically why the petitioner 
believes there is noncompliance and in what way the petitioner is 
aggrieved by the noncompliance. The motion to intervene will be 
considered in accordance with Sec.  1201.34(c) of this part.
    (2) Under Sec.  1201.33(c) of this part, a nonparty witness who has 
obtained an order from a judge that his or her employing agency provide 
the witness with official time may petition the Board for enforcement of 
the order.
    (3) Under Sec.  1201.37(e) of this part, a nonparty witness who has 
obtained an order requiring the payment of witness fees and travel costs 
may petition the Board for enforcement of the order.
    (4) Under Sec.  1201.55(d) of this part, a nonparty witness or other 
individual who has obtained a protective order from a judge during the 
course of a Board proceeding for protection from harassment may petition 
the Board for enforcement of the order.
    (5) A petition for enforcement under paragraph (c)(1), (c)(2), 
(c)(3) or (c)(4) of this section must be filed promptly with the 
regional or field office that issued the order or, if the order was 
issued by the Board, with the Clerk of the Board. The petitioner must 
serve a copy of the petition on each party or the party's 
representative. If the petition is filed under paragraph (c)(1) of this 
section, the motion to intervene must be filed and served with the 
petition.

[54 FR 53504, Dec. 29, 1989, as amended at 59 FR 65235, Dec. 19, 1994; 
62 FR 48935, Sept. 18, 1997; 73 FR 6834, Feb. 6, 2008; 77 FR 62371, Oct. 
12, 2012]



Sec.  1201.183  Procedures for processing petitions for enforcement.

    (a) Initial Processing. (1) When a party has filed a petition for 
enforcement of a final decision, the alleged noncomplying party must 
file one of the following within 15 days of the date of service of the 
petition:
    (i) Evidence of compliance, including a narrative explanation of the 
calculation of back pay and other benefits, and supporting documents;
    (ii) Evidence as described in paragraph (a)(1)(i) of this section of 
the compliance actions that the party has completed, and a statement of 
the actions that are in process and the actions that remain to be taken, 
along with a reasonable schedule for full compliance; or
    (iii) A statement showing good cause for the failure to comply 
completely with the decision of the Board.

The party that filed the petition may respond to that submission within 
10 days after the date of service of the submission. The parties must 
serve copies of their pleadings on each other as required under Sec.  
1201.26(b)(2) of this part.
    (2) If the agency is the alleged noncomplying party, it shall submit 
the name, title, grade, and address of the agency official charged with 
complying with the Board's order, and inform such official in writing of 
the potential sanction for noncompliance as set forth in 5 U.S.C. 
1204(a)(2) and (e)(2)(A), even if the agency asserts it has fully 
complied. The agency must advise the Board of any change to the identity 
or

[[Page 56]]

location of this official during the pendency of any compliance 
proceeding. In the absence of this information, the Board will presume 
that the highest ranking appropriate agency official who is not 
appointed by the President by and with the consent of the Senate is 
charged with compliance.
    (3) The judge may convene a hearing if one is necessary to resolve 
matters at issue.
    (4) If the judge finds that there has been compliance or a good 
faith effort to take all actions required to be in compliance with the 
final decision, he or she will state those findings in a decision. That 
decision will be subject to the procedures for petitions for review by 
the Board under subpart C of this part, and subject to judicial review 
under Sec.  1201.120 of this part.
    (5) If the judge finds that the alleged noncomplying party has not 
taken all actions required to be in full compliance with the final 
decision, the judge will issue an initial decision resolving all issues 
raised in the petition for enforcement and identifying the specific 
actions the noncomplying party must take to be in compliance with the 
Board's final decision. A copy of the initial decision will be served on 
the responsible agency official.
    (6) If an initial decision described under paragraph (a)(5) of this 
section is issued, the party found to be in noncompliance must do the 
following:
    (i) To the extent that the party decides to take the actions 
required by the initial decision, the party must submit to the Clerk of 
the Board, within the time limit for filing a petition for review under 
Sec.  1201.114(e) of this part, a statement that the party has taken the 
actions identified in the initial decision, along with evidence 
establishing that the party has taken those actions. The narrative 
statement must explain in detail why the evidence of compliance 
satisfies the requirements set forth in the initial decision.
    (ii) To the extent that the party decides not to take all of the 
actions required by the initial decision, the party must file a petition 
for review under the provisions of Sec. Sec.  1201.114 and 1201.115 of 
this part.
    (iii) The responses required by the preceding two paragraphs may be 
filed separately or as a single pleading.
    (7) If the agency is the party found to be in noncompliance, it must 
advise the Board, as part of any submission under this paragraph, of any 
change in the identity or location of the official responsible for 
compliance previously provided pursuant to paragraph (a)(2) of this 
section.
    (8) The complying party may file evidence and argument in response 
to any submission described in paragraph (a)(6) of this section by 
filing opposing evidence and argument with the Clerk of the Board within 
20 days of the date such submission is filed.
    (9) Discovery may be undertaken in accordance with the Board's 
regular discovery procedures (Sec. Sec.  1201.71 through 1201.75 of this 
part), except that unless otherwise directed by the judge, initial 
discovery requests must be served no later than 15 days after the 
alleged noncomplying party files a response to the petition for 
enforcement as required under paragraph (a)(1) of this section.
    (b) Final Decision of noncompliance. If a party found to be in 
noncompliance under paragraph (a)(5) of this section does not file a 
timely pleading with the Clerk of the Board as required by paragraph 
(a)(6) of this section, the findings of noncompliance become final and 
the case will be processed under the enforcement provisions of paragraph 
(c)(1) of this section.
    (c) Consideration by the Board. (1) Following review of the initial 
decision and the written submissions of the parties, the Board will 
render a final decision on the issues of compliance. Upon finding that 
the agency is in noncompliance, the Board may, when appropriate, require 
the agency and the responsible agency official to appear before the 
Board to show why sanctions should not be imposed under 5 U.S.C. 
1204(a)(2) and 1204(e)(2)(A). The Board also may require the agency and 
the responsible agency official to make this showing in writing, or to 
make it both personally and in writing. The responsible agency official 
has the right to respond in writing or to appear at any argument 
concerning the withholding of that official's pay.

[[Page 57]]

    (2) The Board's final decision on the issues of compliance is 
subject to judicial review under 1201.120 of this part.
    (d) Burdens of proof. If an appellant files a petition for 
enforcement seeking compliance with a Board order, the agency generally 
has the burden to prove its compliance with the Board order by a 
preponderance of the evidence. However, if any party files a petition 
for enforcement seeking compliance with the terms of a settlement 
agreement, that party has the burden of proving the other party's breach 
of the settlement agreement by a preponderance of the evidence.
    (e) Certification to the Comptroller General. When appropriate, the 
Board may certify to the Comptroller General of the United States, under 
5 U.S.C. 1204(e)(2)(A), that no payment is to be made to a certain 
Federal employee. This order may apply to any Federal employee, other 
than a Presidential appointee subject to confirmation by the Senate, who 
is found to be in noncompliance with the Board's order.
    (f) Effect of Special Counsel's action or failure to act. Failure by 
the Special Counsel to file a complaint under 5 U.S.C. 1215(a)(1)(C) and 
subpart D of this part will not preclude the Board from taking action 
under this subpart.

[54 FR 53504, Dec. 29, 1989, as amended at 63 FR 41179, Aug. 3, 1998; 77 
FR 62372, Oct. 12, 2012; 80 FR 21153, Apr. 17, 2015; 80 FR 66788, Oct. 
30, 2015]



                      Subpart G_Savings Provisions



Sec.  1201.191  Savings provisions.

    (a) Civil Service Reform Act of 1978 (Pub.L. 95-454)--(1) Scope. All 
executive orders, rules and regulations relating to the Federal service 
that were in effect prior to the effective date of the Civil Service 
Reform Act shall continue in effect and be applied by the Board in its 
adjudications until modified, terminated, superseded, or repealed by the 
President, Office of Personnel Management, the Merit Systems Protection 
Board, the Equal Employment Opportunity Commission, or the Federal Labor 
Relations Authority, as appropriate.
    (2) Administrative proceedings and appeals therefrom. No provision 
of the Civil Service Reform Act shall be applied by the Board in such a 
way as to affect any administrative proceeding pending at the effective 
date of such provision. ``Pending'' is considered to encompass existing 
agency proceedings, and appeals before the Board or its predecessor 
agencies, that were subject to judicial review or under judicial review 
on January 11, 1979, the date on which the Act became effective. An 
agency proceeding is considered to exist once the employee has received 
notice of the proposed action.
    (3) Explanation. Mr. X was advised of agency's intention to remove 
him for abandonment of position, effective December 29, 1978. Twenty 
days later Mr. X appealed the agency action to the Merit Systems 
Protection Board. The Merit Systems Protection Board docketed Mr. X's 
appeal as an ``old system case,'' i.e., one to which the savings clause 
applied. The appropriate regional office processed the case, applying 
the substantive laws, rules and regulations in existence prior to the 
enactment of the Act. The decision, dated February 28, 1979, informed 
Mr. X that he is entitled to judicial review if he files a timely notice 
of appeal in the appropriate United States district court or the United 
States Court of Claims under the statute of limitations applicable when 
the adverse action was taken.
    (b) Whistleblower Protection Act of 1989 (Pub. L. 101-12)--(1) 
Scope. All orders, rules, and regulations issued by the Board and the 
Special Counsel before the effective date of the Whistleblower 
Protection Act of 1989 shall continue in effect, according to their 
terms, until modified, terminated, superseded, or repealed by the Board 
or the Special Counsel, as appropriate.
    (2) Administrative proceedings and appeals therefrom. No provision 
of the Whistleblower Protection Act of 1989 shall be applied by the 
Board in such a way as to affect any administrative proceeding pending 
at the effective date of such provision. ``Pending'' is considered to 
encompass existing agency proceedings, including personnel actions that 
were proposed, threatened, or taken before July 9, 1989, the effective 
date of the Whistleblower Protection Act of 1989, and appeals before the 
Board or its predecessor agencies that

[[Page 58]]

were subject to judicial review on that date. An agency proceeding is 
considered to exist once the employee has received notice of the 
proposed action.



Subpart H_Attorney Fees (Plus Costs, Expert Witness Fees, and Litigation 
Expenses, Where Applicable) and Damages (Consequential, Liquidated, and 
                              Compensatory)

    Source: 63 FR 41179, Aug. 3, 1998, unless otherwise noted.



Sec.  1201.201  Statement of purpose.

    (a) This subpart governs Board proceedings for awards of attorney 
fees (plus costs, expert witness fees, and litigation expenses, where 
applicable), consequential damages, compensatory damages, and liquidated 
damages.
    (b) There are seven statutory provisions covering attorney fee 
awards. Because most MSPB cases are appeals under 5 U.S.C. 7701, most 
requests for attorney fees will be governed by Sec.  1201.202(a)(1). 
There are, however, other attorney fee provisions that apply only to 
specific kinds of cases. For example, Sec.  1201.202(a)(4) applies only 
to certain whistleblower appeals. Sections 1201.202(a)(5) and (a)(6) 
apply only to corrective and disciplinary action cases brought by the 
Special Counsel. Section 1201.202(a)(7) applies only to appeals brought 
under the Uniformed Services Employment and Reemployment Rights Act.
    (c) An award of consequential damages is authorized in only two 
situations: Where the Board orders corrective action in a whistleblower 
appeal under 5 U.S.C. 1221, and where the Board orders corrective action 
in a Special Counsel complaint under 5 U.S.C. 1214. Consequential 
damages include such items as medical costs and travel expenses, and 
other costs as determined by the Board through case law.
    (d) The Civil Rights Act of 1991 (42 U.S.C. 1981a) authorizes an 
award of compensatory damages to a prevailing party who is found to have 
been intentionally discriminated against based on race, color, religion, 
sex, national origin, or disability. The Whistleblower Protection 
Enhancement Act of 2012 (5 U.S.C. 1221(g)) also authorizes an award of 
compensatory damages in cases where the Board orders corrective action. 
Compensatory damages include pecuniary losses, future pecuniary losses, 
and nonpecuniary losses, such as emotional pain, suffering, 
inconvenience, mental anguish, and loss of enjoyment of life.
    (e) An award equal to back pay shall be awarded as liquidated 
damages under 5 U.S.C. 3330c when the Board or a court determines an 
agency willfully violated an appellant's veterans' preference rights.

[63 FR 41179, Aug. 3, 1998, as amended at 77 FR 62372, Oct. 12, 2012; 78 
FR 39545, July 2, 2013]



Sec.  1201.202  Authority for awards.

    (a) Awards of attorney fees (plus costs, expert witness fees, and 
litigation expenses, where applicable). The Board is authorized by 
various statutes to order payment of attorney fees and, where 
applicable, costs, expert witness fees, and litigation expenses. These 
statutory authorities include, but are not limited to, the following 
authorities to order payment of:
    (1) Attorney fees, as authorized by 5 U.S.C. 7701(g)(1), where the 
appellant or respondent is the prevailing party in an appeal under 5 
U.S.C. 7701 or an agency action against an administrative law judge 
under 5 U.S.C. 7521, and an award is warranted in the interest of 
justice;
    (2) Attorney fees, as authorized by 5 U.S.C. 7701(g)(2), where the 
appellant or respondent is the prevailing party in an appeal under 5 
U.S.C. 7701, a request to review an arbitration decision under 5 U.S.C. 
7121(d), or an agency action against an administrative law judge under 5 
U.S.C. 7521, and the decision is based on a finding of discrimination 
prohibited under 5 U.S.C. 2302(b)(1);
    (3) Attorney fees and costs, as authorized by 5 U.S.C. 1221(g)(2), 
where the appellant is the prevailing party in an appeal under 5 U.S.C. 
7701 and the Board's decision is based on a finding of a prohibited 
personnel practice;
    (4) Attorney fees and costs, as authorized by 5 U.S.C. 
1221(g)(1)(B), where the Board orders corrective action in a

[[Page 59]]

whistleblower appeal to which 5 U.S.C. 1221 applies;
    (5) Attorney fees, as authorized by 5 U.S.C. 1214(g)(2) or 5 U.S.C. 
7701(g)(1), where the Board orders corrective action in a Special 
Counsel complaint under 5 U.S.C. 1214;
    (6) Attorney fees, costs and damages as authorized by 5 U.S.C. 
1214(h) where the Board orders corrective action in a Special Counsel 
complaint under 5 U.S.C. 1214 and determines that the employee has been 
subjected to an agency investigation that was commenced, expanded or 
extended in retaliation for the disclosure or protected activity that 
formed the basis of the corrective action.
    (7) Attorney fees, as authorized by 5 U.S.C. 1204(m), where the 
respondent is the prevailing party in a Special Counsel complaint for 
disciplinary action under 5 U.S.C. 1215;
    (8) Attorney fees, expert witness fees, and litigation expenses, as 
authorized by the Uniformed Services Employment and Reemployment Rights 
Act, 38 U.S.C. 4324(c)(4); and
    (9) Attorney fees, expert witness fees, and other litigation 
expenses, as authorized by the Veterans Employment Opportunities Act; 5 
U.S.C. 3330c(b).
    (b) Awards of consequential damages. The Board may order payment of 
consequential damages, including medical costs incurred, travel 
expenses, and any other reasonable and foreseeable consequential 
damages:
    (1) As authorized by 5 U.S.C. 1221(g)(1)(A)(ii), where the Board 
orders corrective action in a whistleblower appeal to which 5 U.S.C. 
1221 applies; and
    (2) As authorized by 5 U.S.C. 1221(g)(4) where the Board orders 
corrective action to correct a prohibited personnel practice and 
determines that the employee has been subjected to an agency 
investigation that was commenced, expanded, or extended in retaliation 
for the disclosure or protected activity that formed the basis of the 
corrective action.
    (3) As authorized by 5 U.S.C. 1214(g)(2), where the Board orders 
corrective action in a Special Counsel complaint under 5 U.S.C. 1214.
    (4) As authorized by 5 U.S.C. 1214(h) where the Board orders 
corrective action to correct a prohibited personnel practice and 
determines that the employee has been subjected to an agency 
investigation that was commenced, expanded, or extended in retaliation 
for the disclosure or protected activity that formed the basis of the 
corrective action.
    (c) Awards of compensatory damages. The Board may order payment of 
compensatory damages, as authorized by section 102 of the Civil Rights 
Act of 1991 (42 U.S.C. 1981a), based on a finding of unlawful 
intentional discrimination but not on an employment practice that is 
unlawful because of its disparate impact under the Civil Rights Act of 
1964, the Rehabilitation Act of 1973, or the Americans with Disabilities 
Act of 1990. The Whistleblower Protection Enhancement Act of 2012 (5 
U.S.C. 1221(g)) also authorizes an award of compensatory damages in 
cases where the Board orders corrective action. Compensatory damages 
include pecuniary losses, future pecuniary losses, and nonpecuniary 
losses such as emotional pain, suffering, inconvenience, mental anguish, 
and loss of enjoyment of life.
    (d) Awards of liquidated damages. The Board may award an amount 
equal to back pay as liquidated damages under 5 U.S.C. 3330c when it 
determines that an agency willfully violated an appellant's veterans' 
preference rights.
    (e) Definitions. For purposes of this subpart:
    (1) A proceeding on the merits is a proceeding to decide an appeal 
of an agency action under 5 U.S.C. 1221 or 7701, an appeal under 38 
U.S.C. 4324, an appeal under 5 U.S.C. 3330a, a request to review an 
arbitration decision under 5 U.S.C. 7121(d), a Special Counsel complaint 
under 5 U.S.C. 1214 or 1215, or an agency action against an 
administrative law judge under 5 U.S.C. 7521.
    (2) An addendum proceeding is a proceeding conducted after issuance 
of a final decision in a proceeding on the merits, including a decision 
accepting the parties' settlement of the case. The final decision in the 
proceeding on the merits may be an initial decision of a judge that has 
become final under

[[Page 60]]

Sec.  1201.113 of this part or a final decision of the Board.

[63 FR 41179, Aug. 3, 1998, as amended at 65 FR 5409, Feb. 4, 2000; 77 
FR 62373, Oct. 12, 2012; 78 FR 39546, July 2, 2013]



Sec.  1201.203  Proceedings for attorney fees.

    (a) Form and content of request. A request for attorney fees must be 
made by motion, must state why the appellant or respondent believes he 
or she is entitled to an award under the applicable statutory standard, 
and must be supported by evidence substantiating the amount of the 
request. Evidence supporting a motion for attorney fees must include at 
a minimum:
    (1) Accurate and current time records;
    (2) A copy of the terms of the fee agreement (if any);
    (3) A statement of the attorney's customary billing rate for similar 
work, with evidence that that rate is consistent with the prevailing 
community rate for similar services in the community in which the 
attorney ordinarily practices; and
    (4) An established attorney-client relationship.
    (b) Addendum proceeding. A request for attorney fees will be decided 
in an addendum proceeding.
    (c) Place of filing. Where the initial decision in the proceeding on 
the merits was issued by a judge in a MSPB regional or field office, a 
motion for attorney fees must be filed with the regional or field office 
that issued the initial decision. Where the decision in the proceeding 
on the merits was an initial decision issued by a judge at the Board's 
headquarters or where the only decision was a final decision issued by 
the Board, a motion for attorney fees must be filed with the Clerk of 
the Board.
    (d) Time of filing. A motion for attorney fees must be filed as soon 
as possible after a final decision of the Board but no later than 60 
days after the date on which a decision becomes final.
    (e) Service. A copy of a motion for attorney fees must be served on 
the other parties or their representatives at the time of filing. A 
party may file a pleading responding to the motion within the time limit 
established by the judge.
    (f) Hearing; applicability of subpart B. The judge may hold a 
hearing on a motion for attorney fees and may apply appropriate 
provisions of subpart B of this part to the addendum proceeding.
    (g) Initial decision; review by the Board. The judge will issue an 
initial decision in the addendum proceeding, which shall be subject to 
the provisions for a petition for review by the Board under subpart C of 
this part.

[63 FR 41179, Aug. 3, 1998, as amended at 65 FR 24381, Apr. 26, 2000]



Sec.  1201.204  Proceedings for consequential, liquidated, 
or compensatory damages.

    (a) Time for making request. (1) A request for consequential, 
liquidated, or compensatory damages must be made during the proceeding 
on the merits, no later than the end of the conference(s) held to define 
the issues in the case.
    (2) The judge or the Board, as applicable, may waive the time limit 
for making a request for consequential, liquidated, or compensatory 
damages for good cause shown. The time limit will not be waived if a 
party shows that such waiver would result in undue prejudice.
    (b) Form and content of request. A request for consequential, 
liquidated, or compensatory damages must be made in writing and must 
state the amount of damages sought and the reasons why the appellant or 
respondent believes he or she is entitled to an award under the 
applicable statutory standard.
    (c) Service. A copy of a request for consequential, liquidated, or 
compensatory damages must be served on the other parties or their 
representatives when the request is made.
    A party may file a pleading responding to the request within the 
time limit established by the judge or the Board, as applicable.
    (d) Addendum proceeding. (1) A request for consequential, 
liquidated, or compensatory damages will be decided in an addendum 
proceeding.
    (2) A judge may waive the requirement of paragraph (d)(1), either on 
his or her own motion or on the motion of a party, and consider a 
request for damages in a proceeding on the merits

[[Page 61]]

where the judge determines that such action is in the interest of the 
parties and will promote efficiency and economy in adjudication.
    (e) Initiation of addendum proceeding. (1) A motion for initiation 
of an addendum proceeding to decide a request for consequential, 
liquidated, or compensatory damages must be filed as soon as possible 
after a final decision of the Board but no later than 60 days after the 
date on which a decision becomes final. Where the initial decision in 
the proceeding on the merits was issued by a judge in a MSPB regional or 
field office, the motion must be filed with the regional or field office 
that issued the initial decision. Where the decision in the proceeding 
on the merits was an initial decision issued by a judge at the Board's 
headquarters or where the only decision was a final decision issued by 
the Board, the motion must be filed with the Clerk of the Board.
    (2) A copy of a motion for initiation of an addendum proceeding to 
decide a request for consequential, liquidated, or compensatory damages 
must be served on the other parties or their representatives at the time 
of filing. A party may file a pleading responding to the motion within 
the time limit established by the judge.
    (f) Hearing; applicability of subpart B. The judge may hold a 
hearing on a request for consequential, liquidated, or compensatory 
damages and may apply appropriate provisions of subpart B of this part 
to the addendum proceeding.
    (g) Initial decision; review by the Board. The judge will issue an 
initial decision in the addendum proceeding, which shall be subject to 
the provisions for a petition for review by the Board under subpart C of 
this part.
    (h) Request for damages first made in proceeding before the Board. 
Where a request for consequential, liquidated, or compensatory damages 
is first made on petition for review of a judge's initial decision on 
the merits and the Board waives the time limit for making the request in 
accordance with paragraph (a)(2) of this section, or where the request 
is made in a case where the only MSPB proceeding is before the Board, 
including, for compensatory damages only, a request to review an 
arbitration decision under 5 U.S.C. 7121(d), the Board may:
    (1) Consider both the merits and the request for damages and issue a 
final decision;
    (2) Remand the case to the judge for a new initial decision, either 
on the request for damages only or on both the merits and the request 
for damages; or
    (3) Where there has been no prior proceeding before a judge, forward 
the request for damages to a judge for hearing and a recommendation to 
the Board, after which the Board will issue a final decision on both the 
merits and the request for damages.
    (i) EEOC review of decision on compensatory damages. A final 
decision of the Board on a request for compensatory damages pursuant to 
the Civil Rights Act of 1991 shall be subject to review by the Equal 
Employment Opportunity Commission as provided under subpart E of this 
part.

[63 FR 41179, Aug. 3, 1998, as amended at 77 FR 62373, Oct. 12, 2012]



Sec.  1201.205  Judicial review.

    A final Board decision under this subpart is subject to judicial 
review as provided under 5 U.S.C. 7703.



                 Sec. Appendix I to Part 1201 [Reserved]



Sec. Appendix II to Part 1201--Appropriate Regional or Field Office for 
                             Filing Appeals

    All submissions shall be addressed to the Regional Director, if 
submitted to a regional office, or the Chief Administrative Judge, if 
submitted to a field office, Merit Systems Protection Board, at the 
addresses listed below, according to geographic region of the employing 
agency or as required by Sec.  1201.4(d) of this part. The facsimile 
numbers listed below are TDD-capable; however, calls will be answered by 
voice before being connected to the TDD. Address of Appropriate Regional 
or Field Office and Area Served:
    1. Atlanta Regional Office, 401 West Peachtree Street, NW., 10th 
floor, Atlanta, Georgia 30308-3519, Facsimile No.: (404) 730-2767, 
(Alabama; Florida; Georgia; Mississippi; South Carolina; and Tennessee).
    2. Central Regional Office, 230 South Dearborn Street, 31st floor, 
Chicago, Illinois 60604-1669, Facsimile No.: (312) 886-4231, (Illinois; 
Indiana; Iowa; Kansas City, Kansas; Kentucky; Michigan; Minnesota; 
Missouri; Ohio; and Wisconsin).

[[Page 62]]

    3. Northeastern Regional Office, 1601 Market Street, Suite 1700, 
Philadelphia, PA 19103, Facsimile No.: (215) 597-3456, (Connecticut; 
Delaware; Maine; Maryland--except the counties of Montgomery and Prince 
George's; Massachusetts; New Hampshire; New Jersey--except the counties 
of Bergen, Essex, Hudson, and Union; Pennsylvania; Rhode Island; 
Vermont; and West Virginia).
    3a. New York Field Office, 26 Federal Plaza, Room 3137-A, New York, 
New York 10278-0022, Facsimile No.: (212) 264-1417, (New Jersey--
counties of Bergen, Essex, Hudson, and Union; New York; Puerto Rico; and 
Virgin Islands).
    4. Washington Regional Office, 1901 S. Bell Street, Arlington, 
Virginia 22202, Facsimile No.: (703) 756-7112, (Maryland--counties of 
Montgomery and Prince George's; North Carolina; Virginia; Washington, 
DC; and all overseas areas not otherwise covered).
    5. Western Regional Office, 1301 Clay Street, Suite 1380N, Oakland, 
California 94612-5217, Facsimile No.: (510) 273-7136, (Alaska; 
California; Hawaii; Idaho; Nevada; Oregon; Washington; and Pacific 
overseas areas).
    5a. Denver Field Office, 165 South Union Blvd., Suite 318, Lakewood, 
Colorado 80228-2211, Facsimile No.: (303) 969-5109, (Arizona; Colorado; 
Kansas--except Kansas City; Montana; Nebraska; New Mexico; North Dakota; 
South Dakota; Utah; and Wyoming).
    6. Dallas Regional Office, 1100 Commerce Street, Room 620, Dallas, 
Texas 75242-9979, Facsimile No.: (214) 767-0102, (Arkansas; Louisiana; 
Oklahoma; and Texas).

[69 FR 11503, Mar. 11, 2004, as amended at 69 FR 61991, Oct. 22, 2004; 
72 FR 40215, July 24, 2007; 73 FR 2143, Jan. 14, 2008; 78 FR 43971, July 
23, 2013; 82 FR 47083, Oct. 11, 2017]



                Sec. Appendix III to Part 1201 [Reserved]



  Sec. Appendix IV to Part 1201--Sample Declaration Under 28 U.S.C.1746

                               Declaration

    I, ___________, do hereby declare:
    I declare under penalty of perjury under the laws of the United 
States of America that the foregoing is true and correct.
Executed on
________________________________________________________________________

Date

________________________________________________________________________
Signature



PART 1202_STATUTORY REVIEW BOARD--Table of Contents



    Authority: 5 U.S.C. 1204.



Sec.  1202.1  Designating Chairman of Statutory Review Board.

    At the written request of the Department of Transportation, the 
Chairman of the Board will designate a presiding official of the Board 
to serve as the Chairman of any Board of Review established by the 
Secretary of Transportation under 5 U.S.C. 3383(b) to review certain 
actions to remove air traffic controllers.

[54 FR 28658, July 6, 1989]



PART 1203_PROCEDURES FOR REVIEW OF RULES AND REGULATIONS OF THE OFFICE 
OF PERSONNEL MANAGEMENT--Table of Contents



                                 General

Sec.
1203.1 Scope; application of part 1201, subpart B.
1203.2 Definitions.

                          Procedures for Review

1203.11 Request for regulation review.
1203.12 Granting or denying the request for regulation review.
1203.13 Filing pleadings.
1203.14 Serving documents.
1203.15 Review of regulations on the Board's own motion.
1203.16 Proceedings.

                           Order of the Board

1203.21 Final order of the Board.
1203.22 Enforcement of order.

    Authority: 5 U.S.C. 1204(a), 1204(f), and 1204(h).

    Source: 54 FR 23632, June 2, 1989, unless otherwise noted.

                                 General



Sec.  1203.1  Scope; application of part 1201, subpart B.

    (a) General. This part applies to the Board's review, under 5 U.S.C. 
1204(a)(4) and 1204(f), of any rules or regulations (``regulations'') 
issued by the Office of Personnel Management (OPM). It applies to the 
Board's review of the way in which an agency implements regulations, as 
well as to its review of the validity of the regulations on their face.
    (b) Application of 5 CFR part 1201, subparts B and C. (1) Where 
appropriate, and unless the Board's regulations provide otherwise, the 
Board may apply

[[Page 63]]

the provisions of 5 CFR part 1201, subpart B to proceedings conducted 
under this part. It may do so on its own motion or on the motion of a 
party to these proceedings.
    (2) The following provisions of 5 CFR part 1201, subparts B and C do 
not apply to proceedings conducted under this part:
    (i) Sections 1201.21 through 1201.27 which concern petitions for 
appeal of agency actions, and the pleadings that are filed in connection 
with those petitions; and
    (ii) Sections 1201.111 through 1201.119 which concern final 
decisions of presiding officials, and petitions for Board review of 
those decisions.

[54 FR 23632, June 2, 1989, as amended at 54 FR 28658, July 6, 1989]



Sec.  1203.2  Definitions.

    (a) Invalid regulation means a regulation that has been issued by 
OPM, and that, on its face, would require an employee to commit a 
prohibited personnel practice if any agency implemented the regulation.
    (b) Invalidly implemented regulation means a regulation, issued by 
OPM, whose implementation by an agency has required an employee to 
commit a prohibited personnel practice. A valid regulation may be 
invalidly implemented.
    (c) Merit system principles are the principles stated in 5 U.S.C. 
2301(b)(1) through 2301(b)(9).
    (d) Pleadings are written submissions containing claims, 
allegations, arguments, or evidence. They include briefs, motions, 
requests for regulation review, responses, replies, and attachments that 
are submitted in connection with proceedings under this part.
    (e) Prohibited personnel practices are the impermissible actions 
described in 5 U.S.C. 2302(b)(1) through 2302(b)(12).
    (f) Regulation review means the procedure under which the Board, 
under 5 U.S.C. 1204(f), reviews regulations issued by OPM on their face, 
or reviews those regulations as they have been implemented, or both, in 
order to determine whether the regulations require any employee to 
commit a prohibited personnel practice.
    (g) Request for regulation review means a request that the Board 
review a regulation issued by OPM.

[54 FR 23632, June 2, 1989, as amended at 54 FR 28658, July 6, 1989; 77 
FR 62373, Oct. 12, 2012]

                          Procedures for Review



Sec.  1203.11  Request for regulation review.

    (a) An interested person or the Special Counsel may submit a request 
for regulation review.
    (b) Contents of request. (1) Each request for regulation review must 
include the following information:
    (i) The name, address, and signature of the requester's 
representative or, if the requester has no representative, of the 
requester;
    (ii) A citation identifying the regulation being challenged;
    (iii) A statement (along with any relevant documents) describing in 
detail the reasons why the regulation would require an employee to 
commit a prohibited personnel practice; or the reasons why the 
implementation of the regulation requires an employee to commit a 
prohibited personnel practice;
    (iv) Specific identification of the prohibited personnel practice at 
issue; and
    (v) A description of the action the requester would like the Board 
to take.
    (2) If the prohibited personnel practice at issue is one prohibited 
by 5 U.S.C. 2302(b)(12), the request must include the following 
additional information:
    (i) Identification of the law or regulation that allegedly would be 
or has been violated, and how it would be or has been violated; and
    (ii) Identification of the merit system principles at issue and an 
explanation of the way in which the law or regulation at issue 
implements or directly concerns those principles.

[54 FR 23632, June 2, 1989, as amended at 65 FR 57939, Sept. 27, 2000]



Sec.  1203.12  Granting or denying the request for regulation review.

    (a) The Board, in its sole discretion, may grant or deny an 
interested person's request for regulation review. It

[[Page 64]]

will grant a request for regulation review that the Special Counsel 
submits. It will not, however, review a regulation before its effective 
date.
    (b) After considering the request for regulation review, the Board 
will issue an order granting or denying the request in whole or in part. 
Orders in which the Board grants the request, in whole or in part, will 
identify the agency or agencies involved, if any. They also will include 
the following:
    (1) A citation identifying the regulation being challenged;
    (2) A description of the issues to be addressed;
    (3) The docket number assigned to the proceedings; and
    (4) Instructions covering the review proceedings, including 
information regarding the time limits for filing submissions related to 
the request.

[54 FR 23632, June 2, 1989, as amended at 56 FR 41749, Aug. 23, 1991]



Sec.  1203.13  Filing pleadings.

    (a) Place to file and number of copies. One original and three 
copies of each pleading must be filed with the Office of the Clerk, U.S. 
Merit Systems Protection Board, 1615 M Street, NW., Washington, DC 
20419. In addition, parties to a proceeding under this part must serve 
their pleadings on each other in accordance with Sec.  1203.14 of this 
part. The Office of the Clerk will make all pleadings available for 
review by the public.
    (b) Time limits. (1) A request for regulation review may be filed 
any time after the effective date of the regulation.
    (2) A response to a request for regulation review, whether the 
response supports or opposes the request, must be filed within the time 
period provided in the Board order granting the request for review.
    (3) A reply to a response may be filed within 10 days after the 
response is filed. The reply may address only those matters raised in 
the response that were not addressed in the request for regulation 
review.
    (4) Motions may be filed at any time during the regulation review. 
The filing of a motion will not delay the acting of the Board unless the 
Board orders a postponement. The Board may rule immediately on a motion 
for an extension of time or a continuance if circumstances make 
consideration of others' views regarding the motion impracticable.
    (5) Submissions opposing motions must be filed within five days 
after the opposing party receives the motion.
    (c) Additional pleadings. The Board will consider pleadings in 
addition to those mentioned above only if the Board requests them, or if 
it grants a request that it consider them.
    (d) Method and date of filing. An initial filing in a request for 
review of a regulation may be filed with the Office of the Clerk by 
mail, by commercial or personal delivery, or by facsimile. Pleadings, 
other than an initial request for a regulation review under this part, 
may be filed with the Office of the Clerk by mail, by commercial or 
personal delivery, by facsimile, or by e-filing in accordance with Sec.  
1201.14 of this chapter. If the document was submitted by certified 
mail, it is considered to have been filed on the mailing date. If it was 
submitted by regular mail, it is presumed to have been filed five days 
before the Office of the Clerk receives it, in the absence of evidence 
contradicting that presumption. If it was delivered personally, it is 
considered to have been filed on the date the Office of the Clerk 
receives it. If it was submitted by facsimile, the date of the facsimile 
is considered to be the filing date. If it was submitted by commercial 
delivery, the date of filing is the date it was delivered to the 
commercial delivery service. If it was submitted by e-filing, it is 
considered to have been filed on the date of electronic submission.
    (e) Extensions of time. The Board will grant a request for extension 
of time only when good cause is shown.

[54 FR 23632, June 21, 1989, as amended at 59 FR 65242, Dec. 19, 1994; 
65 FR 48885, Aug. 10, 2000; 68 FR 59864, Oct. 20, 2003; 69 FR 57631, 
Sept. 27, 2004]



Sec.  1203.14  Serving documents.

    (a) Parties. In every case, the person requesting regulation review 
must serve a copy of the request on the Director of OPM. In addition, 
when the implementation of a regulation is being challenged, the 
requester must

[[Page 65]]

also serve a copy of the request on the head of the implementing agency. 
A copy of all other pleadings must be served, by the person submitting 
the pleading, on each other party to the proceeding.
    (b) Method of serving documents. Pleadings may be served on parties 
by mail, by personal delivery, by facsimile, or by commercial delivery. 
Service by mail is accomplished by mailing the pleading to each party or 
representative, at the party's or representative's last known address. 
Service by facsimile is accomplished by transmitting the pleading by 
facsimile to each party or representative. Service by personal delivery 
or by commercial delivery is accomplished by delivering the pleading to 
the business office or home of each party or representative and leaving 
it with the party or representative, or with a responsible person at 
that address. Regardless of the method of service, the party serving the 
document must submit to the Board, along with the pleading, a 
certificate of service as proof that the document was served on the 
other parties or their representatives. The certificate of service must 
list the names and addresses of the persons on whom the pleading was 
served, must state the date on which the pleading was served, must state 
the method (i.e., mail, personal delivery, facsimile, or commercial 
delivery) by which service was accomplished, and must be signed by the 
person responsible for accomplishing service.
    (c) Electronic filing. Other than the initial request for a 
regulation review, pleadings in a regulation review proceeding may be 
filed with the Board and served upon other parties by electronic filing, 
provided the requirements of Sec.  1201.14 of this chapter are 
satisfied.

[54 FR 23632, June 21, 1989, as amended at 59 FR 65242, Dec. 19, 1994; 
68 FR 59864, Oct. 20, 2003; 69 FR 57631, Sept. 27, 2004]



Sec.  1203.15  Review of regulations on the Board's own motion.

    The Board may, from time to time, review a regulation on its own 
motion under 5 U.S.C. 1204(f)(1)(A). When it does so, it will publish 
notice of the review in the Federal Register.

[54 FR 28658, July 6, 1989]



Sec.  1203.16  Proceedings.

    The Board has substantial discretion in conducting a regulation 
review under this part. It may conduct a review on the basis of the 
pleadings alone, or on the basis of the pleadings along with any or all 
of the following:
    (a) Additional written comments;
    (b) Oral argument;
    (c) Evidence presented at a hearing; and/or
    (d) Evidence gathered through any other appropriate procedures that 
are conducted in accordance with law.

                           Order of the Board



Sec.  1203.21  Final order of the Board.

    (a) Invalid regulation. If the Board determines that a regulation is 
invalid on its face, in whole or in part, it will require any agency 
affected by the order to stop complying with the regulation, in whole or 
in part. In addition, it may order other remedial action that it finds 
necessary.
    (b) Invalidly implemented regulation. If the Board determines that a 
regulation has been implemented invalidly, in whole or in part, it will 
require affected agencies to terminate the invalid implementation.
    (c) Corrective action. The Board may order corrective action 
necessary to ensure compliance with its order. The action it may order 
includes, but is not limited to, the following:
    (1) Cancellation of any personnel action related to the prohibited 
personnel practice;
    (2) Rescission of any action related to the cancelled personnel 
action;
    (3) Removal of any reference, record, or document within an 
employee's official personnel folder that is related to the prohibited 
personnel practice;
    (4) Award of back pay and benefits;
    (5) Award of attorney fees;
    (6) Other remedial measures to reverse the effects of a prohibited 
personnel practice; and
    (7) The agency's submission of a verified report of its compliance 
with the Board's order.

[[Page 66]]



Sec.  1203.22  Enforcement of order.

    (a) Any party may ask the Board to enforce a final order it has 
issued under this part. The request may be made by filing a petition for 
enforcement with the Office of the Clerk of the Board and by serving a 
copy of the petition on each party to the regulation review. The request 
may be filed in electronic form, provided the requirements of Sec.  
1201.14 are satisfied. The petition must include specific reasons why 
the petitioning party believes that there has been a failure to comply 
with the Board's order.
    (b) The Board will take all action necessary to determine whether 
there has been compliance with its final order. If it determines that 
there has been a failure to comply with the order, it will take actions 
necessary to obtain compliance.
    (c) Where appropriate, the Board may initiate the enforcement 
procedures described in 5 CFR 1201.183(c).

[54 FR 23632, June 2, 1989, as amended at 68 FR 59864, Oct. 20, 2003; 69 
FR 57631, Sept. 27, 2004]



PART 1204_AVAILABILITY OF OFFICIAL INFORMATION--Table of Contents



                       Subpart A_Purpose and Scope

Sec.
1204.1 Purpose.
1204.2 Scope.

    Subpart B_Procedures for Obtaining Records Under the Freedom of 
                             Information Act

1204.11 Requests for access to Board records.
1204.12 Fees.
1204.13 Denials.
1204.14 Requests for access to confidential commercial information.
1204.15 Records of other agencies.

                            Subpart C_Appeals

1204.21 Submission.
1204.22 Decision on appeal.

    Authority: 5 U.S.C. 552 and 1204, Pub. L. 99-570, Pub. L. 104-231, 
and E.O. 12600.

    Source: 64 FR 51039, Sept. 21, 1999, unless otherwise noted.



                       Subpart A_Purpose and Scope



Sec.  1204.1  Purpose.

    This part implements the Freedom of Information Act (FOIA), 5 U.S.C. 
552, as amended, by stating the procedures to follow when requesting 
information from the Board, and by stating the fees that will be charged 
for that information.



Sec.  1204.2  Scope.

    (a) For the purpose of this part, the term record and any other term 
used in reference to information includes any information that would be 
a Board record subject to the requirements of 5 U.S.C. 552 when 
maintained by the Board in any format including an electronic format. 
All written requests for information that are not processed under part 
1205 of this chapter will be processed under this part. The Board may 
continue, without complying with this part, to furnish the public with 
the information it has furnished in the regular course of performing its 
official duties, unless furnishing the information would violate the 
Privacy Act of 1974, 5 U.S.C. 552a, or another law.
    (b) When the subject of the record, or the subject's representative, 
requests a record from a Privacy Act system of records, as that term is 
defined by 5 U.S.C. 552a(a)(5), and the Board retrieves the record by 
the subject's name or other personal identifier, the Board will handle 
the request under the procedures and fees shown in part 1205 of this 
chapter. When a third party requests access to those records, without 
the written consent of the subject of the record, the Board will handle 
the request under this part.
    (c) When a party to an appeal requests a copy of a tape recording, 
video tape, or transcript (if one has been prepared) of a hearing that 
the Board or a judge held under part 1201 or part 1209 of this chapter, 
the Board will handle the request under Sec.  1201.53 of this chapter. 
When someone other than a party to the appeal makes this request, the 
Board will handle the request under this part.
    (d) In accordance with 5 U.S.C. 552(a)(2), the Board's final 
opinions and orders (including concurring and dissenting opinions), 
those statements of

[[Page 67]]

policy and interpretations adopted by the Board and that are not 
published in the Federal Register, administrative staff manuals and 
instructions to staff that affect a member of the public, and agency 
records processed and disclosed in response to a FOIA request that the 
Board determines have been or are likely to become the subject of 
additional requests for basically the same records and a general index 
of those records, are available for public review and copying in the 
Board's Headquarters' Library, 1615 M Street, NW., Washington, DC 20419-
0001, and on the Board's World Wide Web site at http://www.mspb.gov.

[64 FR 51039, Sept. 21, 1999, as amended at 65 FR 48885, Aug. 10, 2000]



    Subpart B_Procedures for Obtaining Records Under the Freedom of 
                             Information Act



Sec.  1204.11  Request for access to Board records.

    (a) Sending a request. A person may request a Board record under 
this part by writing to the office that has the record. If the requester 
believes that the records are located in a regional or field office, the 
request must be sent to that office. A list of the addresses of the 
Board's regional and field offices are in appendix II of part 1201 of 
this chapter and on the Board's World Wide Web site at http://
www.mspb.gov. Other requests must be sent to the Clerk of the Board, 
1615 M Street, NW., Washington, DC 20419-0001. Requests sent under this 
part must be clearly marked ``Freedom of Information Act Request'' on 
both the envelope and the request.
    (b) Description. A request must describe the records wanted in 
enough detail for Board employees to locate the records with no more 
than a reasonable effort. Wherever possible, a request must include 
specific information about each record, such as the date, title or name, 
author, recipient, and subject matter of the record. In addition, if the 
request asks for records on cases decided by the Board, it must show the 
title of the case, the MSPB docket number, and the date of the decision.
    (c) Time limits and decisions. If a request is not properly labeled 
or is sent to the wrong office, the time for processing the request will 
begin when the proper office receives it. Requests to the Board's 
headquarters will be decided by the Clerk of the Board. Requests to one 
of the regional or field offices will be decided by the Regional 
Director or Chief Administrative Judge. The Board will decide a request 
within 20 workdays after the appropriate office receives it, except 
under the conditions that follow.
    (1) Extension of time. If ``unusual circumstances'' exist, the Board 
may extend the time for deciding the request by no more than 10 
additional workdays. An example of unusual circumstances could be the 
need to find and retrieve records from regional or field offices or from 
federal records centers or the need to search, collect and or examine a 
large number of records which are demanded in a single request, or the 
need to talk to another agency with a substantial interest in the 
determination of the request. When the Board extends the time to decide 
the request, it will inform the requester in writing and describe the 
``unusual circumstances'', and it will state a date on which a decision 
on the request will be made. If the ``unusual circumstances'' are such 
that the Board cannot comply with the request within the time limit, the 
Board will offer the requester an opportunity:
    (i) To limit the request so that it may be processed within the time 
limit, or
    (ii) To arrange with the Board a different time frame for processing 
the request or a changed request.
    (2) Expedited processing. Where a requester shows a ``compelling 
need'' and in other cases determined by the Board, a decision whether to 
provide expedited processing of a request and notification of that 
decision to the requester will be made within 10 workdays of the date of 
the request. An example of a compelling need could be that a failure to 
obtain the records expeditiously could reasonably be expected to be a 
threat to the life or physical safety of a person or that there is 
urgency to inform the public

[[Page 68]]

about actual or alleged Federal Government activity by a person 
primarily engaged in distributing information. Where the Board approves 
expeditious processing, the Board will process the request within 5 
workdays from the date of the decision to grant the expeditious 
processing. If, in order to fully satisfy the request, the Board 
requires the standard or additional processing time, or if it decides 
that good cause for expedited processing has not been made, it will 
provide written notice of its decision to the requester and will inform 
the requester of the right to administrative and court review of the 
decision. A showing of a compelling need must be made by a statement 
certified to be true to the best of the requester's knowledge and 
belief.

[64 FR 51039, Sept. 21, 1999, as amended at 65 FR 48886, Aug. 10, 2000]



Sec.  1204.12  Fees.

    (a) General. The Board will charge the requester fees for services 
provided in processing requests for information. Those fees will be 
charged according to the schedule in paragraph (d) of this section, and 
will recover the full allowable direct costs that the Board incurs. Fees 
may be charged for time spent searching for information, even if the 
Board fails to locate responsive records, and even if it determines that 
the information is exempt from disclosure.
    (b) Definitions. (1) The term direct costs means the costs to an 
agency for searching for and copying (and in the case of commercial 
requesters, reviewing) documents to respond to a FOIA request. Direct 
costs include, for example, the salary of each employee performing work 
at the rate of $5 per quarter hour. Overhead expenses, such as costs of 
space and of heating or lighting the facility in which the records are 
stored, are not included in direct costs.
    (2) The term search, as defined by 5 U.S.C. 552(a)(3)(D), means 
either manual or automated review of Board records to locate those 
records asked for, and includes all time spent looking for material in 
response to a request, including page-by-page or line-by-line 
identification of material within documents. Searches will be done in 
the most efficient and least expensive way to limit costs for both the 
Board and the requester. Searches may be done manually or by computer 
using existing programming. The Board will make a reasonable effort to 
search for the records in electronic form or format, except when such 
effort would interfere to a large extent with the operation of the 
Board's automated information system.
    (3) The term duplication means the process of copying a document or 
electronically maintained information in response to a FOIA request. 
Copies can take the form of paper, microfilm, audio-visual materials, or 
machine-readable documentation (e.g., magnetic tape or disk), among 
others. The copy provided will be in a form or format requested if the 
record is readily reproducible by the Board in that form or format. The 
Board will make a reasonable effort to maintain its records in forms or 
formats that are reproducible.
    (4) The term review includes the process of examining documents to 
determine whether any portion of them may be exempt from disclosure 
under the FOIA, when the documents have been located in response to a 
request that is for a commercial use. The term also includes processing 
any documents for disclosure, e.g., doing all that is necessary to edit 
them and otherwise prepare them for release. Review does not include 
time spent resolving general legal or policy issues.
    (5) The term commercial use request means a request from or on 
behalf of one who seeks information for a use or purpose that furthers 
the commercial, trade, or profit interests of the requester or the 
person on whose behalf the request is made. In deciding whether a 
requester properly belongs in this category, the Board will decide the 
use the requester will make of the documents requested. Also, where the 
Board has reasonable cause to doubt the use a requester will make of the 
records requested, or where that use is not clear from the request, the 
Board will seek additional clarification before assigning the request to 
a specific category.
    (6) The term educational institution means a preschool, a public or 
private elementary or secondary school, an institution of graduate 
higher education,

[[Page 69]]

an institution of undergraduate higher education, an institution of 
professional education, or an institution of vocational education that 
operates a program or programs of scholarly research.
    (7) The term noncommercial scientific institution means an 
institution that is not operated on a ``commercial'' basis as that term 
is used above, and that is operated solely for the purpose of conducting 
scientific research whose results are not intended to promote any 
particular product or industry.
    (8) The term representative of the news media means any person 
actively gathering news for an entity that is organized and operated to 
publish or broadcast news to the public. The term news means information 
that concerns current events or that would be of current interest to the 
public.
    (c) Categories of requesters. There are four categories of FOIA 
requesters: Commercial use requesters; educational and noncommercial 
scientific institutions; representatives of the news media; and all 
other requesters. To be included in the category of educational and 
noncommercial scientific institutions, requesters must show that the 
request is authorized by a qualifying institution and that they are 
seeking the records not for a commercial use, but to further scholarly 
or scientific research. To be included in the news media category, a 
requester must meet the definition in paragraph (b)(8) of this section 
and the request must not be made for a commercial use. To avoid 
commercial use charges, requesters must show that they should be 
included in a category or categories other than that of commercial use 
requesters. The Board will decide the categories to place requesters for 
fee purposes. It will make these determinations based on information 
given by the requesters and information otherwise known to the Board.
    (d) The Board will not charge a requester if the fee for any request 
is less that $100 (the cost to the Board of processing and collecting 
the fee).
    (1) When the Board receives a request:
    (i) From a commercial use requester, it will charge fees that 
recover the full direct costs for searching for the information 
requested, reviewing it for release at the initial request stage, 
reviewing it after an appeal to determine whether other exemptions not 
considered before the appeal apply to it, and copying it.
    (ii) From an educational and noncommercial scientific institution 
or, to the extent copying exceeds 100 pages, from a representative of 
the news media, it will charge fees only for the cost of copying the 
requested information.
    (iii) From all other requesters, to the extent copying exceeds 100 
pages and search time exceeds 2 hours, it will charge fees for the full 
direct cost of searching for and copying requested records.
    (2) When the Board reasonably believes that a requester or group of 
requesters is attempting to divide a request into more than one request 
to avoid payment of fees, the Board will combine the requests and charge 
fees accordingly. The Board will not combine multiple requests on 
unrelated subjects from one requester.
    (3) When the Board decides that charges for a request are likely to 
exceed $250, the Board will require the requester to pay the entire fee 
in advance before continuing to process the request.
    (4) When a requester has an outstanding fee charge or has not paid a 
fee on time, the Board will require the requester to pay the full amount 
of the estimated fee in advance before the Board begins to process a new 
or pending request from that requester, and before it applies 
administrative time limits for making a decision on the new or pending 
request.
    (e) Fee schedule. (1) Fees for document searches for records will be 
charged at a rate of $5 per quarter hour spent by each Board employee 
performing the search.
    (2) Fees for computer searches for records will be $5 per quarter 
hour spent by each employee operating the computer equipment and/or 
developing a new inquiry or report.
    (3) Fees for review at the initial administrative level to determine 
whether records or portions of records are exempt from disclosure, and 
for review after an appeal to determine whether

[[Page 70]]

the records are exempt on other legal grounds, will be charged, for 
commercial use requests, at a rate of $5 per quarter hour spent by each 
reviewing employee.
    (4) Fees for photocopying records is 20 cents a page, the fee for 
copying audio tapes is the direct cost up to $15 per cassette tape; the 
fee for copying video tapes is the direct cost up to $20 per tape; and 
the fee for computer printouts is 10 cents a page. The fee for 
duplication of electronically maintained information in the requester's 
preferred format will be $21 for copying computer tapes and $4 for 
copying records on computer diskettes, if it is feasible for the Board 
to reproduce records in the format requested. Fees for certified copies 
of the Board's records will include a $4 per page charge for each page 
displaying the Board's seal and certification. When the Board estimates 
that copying costs will exceed $100, it will notify the requester of the 
estimated amount unless the requester has indicated in advance a 
willingness to pay an equal or higher amount.
    (f) Fee waivers. (1) Upon request, the Clerk of the Board, Regional 
Director, or Chief Administrative Judge, as appropriate, will furnish 
information without charge or at reduced rates if it is established that 
disclosure ``is in the public interest because it is likely to 
contribute significantly to public understanding of the operations or 
activities of the government.'' This decision will be based on:
    (i) The subject of the request: Whether the subject of the requested 
records concerns the operations or activities of the government;
    (ii) The informative value of the information to be disclosed: 
Whether the disclosure is likely to contribute to an understanding of 
government operations or activities;
    (iii) Whether disclosure of the requested information is likely to 
contribute to public understanding of the subject of the disclosure; and
    (iv) The significance of the contribution the disclosure would make 
to public understanding of government operations or activities.
    (2) If information is to be furnished without charge or at reduced 
rates, the requester must also establish that disclosure of the 
information is not primarily in the commercial interest of the 
requester. This decision will be based on:
    (i) Whether the requester has a commercial interest that would be 
furthered by the requested disclosure; and, if so,
    (ii) Whether the identified commercial interest of the requester is 
sufficiently large, in comparison with the public interest in 
disclosure, that disclosure is primarily in the commercial interest of 
the requester.
    (3) The requester must establish eligibility for a waiver of fees or 
for reduced fees. The denial of a request for waiver of fees may be 
appealed under subpart C of this part.



Sec.  1204.13  Denials.

    (a) The Board may deny: A request for reduced fees or waiver of 
fees; a request for a record, either in whole or in part; a request for 
expeditious processing based on the requester's compelling need; or a 
request that records be released in a specific electronic format. The 
denial will be in writing, will state the reasons, and will notify the 
requester of the right to appeal.
    (b) If the Board applies one or more of the exemptions provided 
under the FOIA to deny access to some or all of the information 
requested, it will respond in writing, identifying for the requester the 
specific exemption(s), providing an explanation as to why the 
exemption(s) to withhold the requested information must be applied, and 
providing an estimate of the amount of material that has been denied to 
the requester, unless providing such an estimate would harm an interest 
protected by the exemptions.
    (c) The amount of information deleted will be indicated on the 
released portion of the record at the place in the record where the 
deletion is made, if technically feasible and unless the indication 
would harm an interest protected by the exemption under which the 
deletion is made.



Sec.  1204.14  Requests for access to confidential commercial information.

    (a) General. Confidential commercial information provided to the 
Board by a

[[Page 71]]

business submitter will not be disclosed in response to a FOIA request 
except as required by this section.
    (b) Definitions. (1) The term confidential commercial information 
means records provided to the government by a submitter that are 
believed to contain material exempt from release under Exemption 4 of 
the Freedom of Information Act, 5 U.S.C. 552(b)(4), because disclosure 
could reasonably be expected to cause substantial competitive harm.
    (2) The term submitter means any person or organization that 
provides confidential commercial information to the government. The term 
submitter includes, but is not limited to, corporations, state 
governments, and foreign governments.
    (c) Notice to business submitters. The Board will provide a business 
submitter with prompt written notice of a request for its confidential 
commercial information whenever such written notice is required under 
paragraph (d) of this section. Exceptions to such written notice are at 
paragraph (h) of this section. This written notice will either describe 
the exact nature of the confidential information requested or provide 
copies of the records or parts of records containing the commercial 
information.
    (d) When initial notice is required. (1) With respect to 
confidential commercial information received by the Board before January 
1, 1988, the Board will give the business submitter notice of a request 
whenever:
    (i) The information is less than 10 years old; or
    (ii) The Board has reason to believe that releasing the information 
could reasonably be expected to cause substantial competitive harm.
    (2) With respect to confidential commercial information received by 
the Board on or after January 1, 1988, the Board will give notice to the 
business submitter whenever:
    (i) The business submitter has designated the information in good 
faith as commercially or financially sensitive information; or
    (ii) The Board has reason to believe that releasing the information 
could reasonably be expected to cause substantial competitive harm.
    (3) Notice of a request for commercially confidential information 
that was received by January 1, 1988, is required for a period of not 
more than 10 years after the date on which the information is submitted 
unless the business submitter requests, and provides justification for, 
a longer specific notice period. Whenever possible, the submitter's 
claim of confidentially must be supported by a statement or 
certification, by an officer or authorized representative of the 
company, that the information in question is confidential commercial 
information and has not been disclosed to the public.
    (e) Opportunity to object to disclosure. Through the notice 
described in paragraph (c) of this section, the Board will give a 
business submitter a reasonable period to provide a detailed statement 
of any objection to disclosure. The statement must specify all grounds 
for withholding any of the information under any exemption of the 
Freedom of Information Act. In addition, in the case of Exemption 4, the 
statement must state why the information is considered to be a trade 
secret, or to be commercial or financial information that is privileged 
or confidential. Information a business submitter provides under this 
paragraph may itself be subject to disclosure under the Freedom of 
Information Act.
    (f) Notice of intent to release information. The Board will consider 
carefully a business submitter's objections and specific grounds for 
claiming that the information should not be released before determining 
whether to release confidential commercial information. Whenever the 
Board decides to release confidential commercial information over the 
objection of a business submitter, it will forward to the business 
submitter a written notice that includes:
    (1) A statement of the reasons for which the business submitter's 
objections to the release were not sufficient;
    (2) A description of the confidential commercial information to be 
released; and
    (3) A specified release date. The Board will forward the notice of 
intent to release the information a reasonable number of days, as 
circumstances permit, before the specified date upon

[[Page 72]]

which release is expected. It will forward a copy of the release notice 
to the requester at the same time.
    (g) Notice of Freedom of Information Act lawsuit. Whenever a 
requester files a lawsuit seeking to require release of business 
information covered by paragraph (d) of this section, the Board will 
notify the business submitter promptly.
    (h) Exceptions to notice requirements. The notice requirements of 
this section do not apply when:
    (1) The Board decides that the information should not be released;
    (2) The information lawfully has been published or otherwise made 
available to the public;
    (3) Disclosure of the information is required by law (other than 5 
U.S.C. 552); or
    (4) The disclosure is required by an agency rule that:
    (i) Was adopted after notice and public comment;
    (ii) Specifies narrow classes of records submitted to the agency 
that are to be released under the FOIA; or
    (iii) Provides in exceptional circumstances for notice when the 
submitter provides written justification, at the time the information is 
submitted or a reasonable time thereafter, that release of the 
information could reasonably be expected to cause substantial 
competitive harm.
    (5) The information requested is not designated by the submitter as 
exempt from release according to agency regulations issued under this 
section, when the submitter has an opportunity to do so at the time of 
sending the information or a reasonable time thereafter, unless the 
agency has good reason to believe that disclosure of the information 
would result in competitive harm; or
    (6) The designation made by the submitter according to Board 
regulations appears obviously frivolous; except that, in such case, the 
Board must provide the submitter with written notice of any final 
administrative release decision within a reasonable period before the 
stated release date.



Sec.  1204.15  Records of other agencies.

    Requests for Board records that were created by another agency may, 
in appropriate circumstances, be referred to that agency for discussion 
or processing. In these instances, the Board will notify the requester.



                            Subpart C_Appeals



Sec.  1204.21  Submission.

    (a) A person may appeal the following actions, or failure to act by 
the Clerk of the Board, a Regional Director, or Chief Administrative 
Judge:
    (1) A denial of access to agency records;
    (2) A denial of a request for a waiver or reduced fees;
    (3) A decision that it is technically not possible to reproduce 
electronically maintained information in the requester's preferred 
format;
    (4) A denial of a request for expedited processing of information 
under this part; or
    (5) A failure to decide a request for expedited processing within 10 
workdays from the date of the request.
    (b) Appeals must be filed with the Chairman, Merit Systems 
Protection Board, 1615 M Street, NW., Washington, DC 20419-0001 within 
10 workdays from the date of the denial. Any appeal must include a copy 
of the initial request, a copy of the letter denying the request, and a 
statement of the reasons why the requester believes the denying employee 
erred.

[64 FR 51039, Sept. 21, 1999, as amended at 65 FR 48886, Aug. 10, 2000]



Sec.  1204.22  Decision on appeal.

    A decision on an appeal will be made within 20 workdays after the 
appeal is received. A decision not to provide expeditious processing of 
a request will be made within 15 workdays after the appeal is received. 
The decision will be in writing and will contain the reasons for the 
decision and information about the appellant's right to seek court 
review of the denial.



PART 1205_PRIVACY ACT REGULATIONS--Table of Contents



                      Subpart A_General Provisions

Sec.
1205.1 Purpose.
1205.2 Policy and scope.

[[Page 73]]

1205.3 Definitions.
1205.4 Disclosure of Privacy Act records.

               Subpart B_Procedures for Obtaining Records

1205.11 Access to Board records.
1205.12 Time limits and determinations.
1205.13 Identification.
1205.14 Granting access.
1205.15 Denying access.
1205.16 Fees.

                     Subpart C_Amendment of Records

1205.21 Request for amendment.
1205.22 Action on request.
1205.23 Time limits.

                            Subpart D_Appeals

1205.31 Submitting appeal.
1205.32 Decision on appeal.

    Authority: 5 U.S.C. 552a and 1204.

    Source: 64 FR 51043, Sept. 21, 1999, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1205.1  Purpose.

    This subpart implements the Privacy Act of 1974, 5 U.S.C. 552a, 
(``the Act'') by stating the procedures by which individuals may 
determine the existence of, seek access to, and request amendment of 
Board records concerning themselves, and by stating the requirements 
that apply to Board employees' use and disclosure of those records.



Sec.  1205.2  Policy and scope.

    The Board's policy is to apply these regulations to all records that 
can be retrieved from a system of records under the Board's control by 
using an individual's name or by using a number, symbol, or other way to 
identify the individual. These regulations, however, do not govern the 
rights of the parties in adversary proceedings before the Board to 
obtain discovery from adverse parties; those rights are governed by part 
1201 and part 1209 of this chapter. These regulations also are not meant 
to allow the alteration, either before or after the Board has issued a 
decision on an appeal, of evidence presented during the Board's 
adjudication of the appeal.



Sec.  1205.3  Definitions.

    The definitions of 5 U.S.C. 552a apply to this part. In addition, as 
used in this part:
    (a) Inquiry means a request by an individual regarding whether the 
Board has a record that refers to that individual.
    (b) Request for access means a request by an individual to look at 
or copy a record.
    (c) Request for amendment means a request by an individual to change 
the substance of a particular record by addition, deletion, or other 
correction.
    (d) Requester means the individual requesting access to or amendment 
of a record. The individual may be either the person to whom the 
requested record refers, a legal guardian acting on behalf of the 
individual, or a representative designated by that individual.



Sec.  1205.4  Disclosure of Privacy Act records.

    (a) Except as provided in 5 U.S.C. 552a(b), the Board will not 
disclose any personal record information from systems of records it 
maintains to any individual other than the individual to whom the record 
refers, or to any other agency, without the express written consent of 
the individual to whom the record refers, or his or her representative 
or attorney.
    (b) The Board's staff will take necessary steps, in accordance with 
the law and these regulations, to protect the security and integrity of 
the records and the personal privacy interests of the subjects of the 
records.



               Subpart B_Procedures for Obtaining Records



Sec.  1205.11  Access to Board records.

    (a) Submission of request. Inquiries or requests for access to 
records must be submitted to the appropriate regional or field office of 
the Board, or to the Clerk of the Board, U.S. Merit Systems Protection 
Board, 1615 M Street, NW., Washington, DC 20419-0001. If the requester 
has reason to believe that the records are located in a regional or

[[Page 74]]

field office, the request must be submitted to that office. Requests 
submitted to the regional or field office must be addressed to the 
Regional Director or Chief Administrative Judge at the appropriate 
regional or field office listed in appendix II of 5 CFR part 1201.
    (b) Form. Each submission must contain the following information:
    (1) The name, address, and telephone number of the individual to 
whom the record refers;
    (2) The name, address, and telephone number of the individual making 
the request if the requester is someone other than the person to whom 
the record refers, such as a legal guardian or an attorney, along with 
evidence of the relationship. Evidence of the relationship may consist 
of an authenticated copy of:
    (i) The birth certificate of the minor child, and
    (ii) The court document appointing the individual legal guardian, or
    (iii) An agreement for representation signed by the individual to 
whom the record refers;
    (3) Any additional information that may assist the Board in 
responding to the request, such as the name of the agency that may have 
taken an action against an individual, or the docket number of the 
individual's case;
    (4) The date of the inquiry or request;
    (5) The inquirer's or requester's signature; and
    (6) A conspicuous indication, both on the envelope and the letter, 
that the inquiry is a ``PRIVACY ACT REQUEST''.
    (c) Identification. Each submission must follow the identification 
requirements stated in Sec.  1205.13 of this part.
    (d) Payment. Records usually will not be released until fees have 
been received.

[64 FR 51043, Sept. 21, 1999, as amended at 65 FR 48886, Aug. 10, 2000]



Sec.  1205.12  Time limits and determinations.

    (a) Board determinations. The Board will acknowledge the request for 
access to records and make a determination on whether to grant it within 
20 workdays after it receives the request, except under the unusual 
circumstances described below:
    (1) When the Board needs to obtain the records from other Board 
offices or a Federal Records Center;
    (2) When it needs to obtain and examine a large number of records;
    (3) When it needs to consult with another agency that has a 
substantial interest in the records requested; or
    (4) When other extenuating circumstances prevent the Board from 
processing the request within the 20-day period.
    (b) Time extensions. When unusual circumstances exist, the Board may 
extend the time for making a determination on the request for no more 
than 10 additional workdays. If it does so, it will notify the requester 
of the extension.
    (c) Improper request. If a request or an appeal is not properly 
labeled, does not contain the necessary identifying information, or is 
submitted to the wrong office, the time period for processing the 
request will begin when the correct official receives the properly 
labeled request and the necessary information.
    (d) Determining officials. The Clerk of the Board, a Regional 
Director, or a Chief Administrative Judge will make determinations on 
requests.

[64 FR 51043, Sept. 21, 1999; 64 FR 71267, Dec. 21, 1999]



Sec.  1205.13  Identification.

    (a) In person. Each requester must present satisfactory proof of 
identity. The following items, which are listed in order of the Board's 
preference, are acceptable proof of the requester's identity when the 
request is made in person:
    (1) A document showing the requester's photograph;
    (2) A document showing the requester's signature; or
    (3) If the items described in paragraphs (a)(1) and (2) of the 
section are not available, a signed statement in which the requester 
asserts his or her identity and acknowledges understanding that 
misrepresentation of identity in order to obtain a record is a 
misdemeanor and subject to a fine of up to $5,000 under 5 U.S.C. 
552a(i)(3).

[[Page 75]]

    (b) By mail. The identification of a requester making a request by 
mail must be certified by a notary public or equivalent official or 
contain other information to identify the requester. Information could 
be the date of birth of the requester and some item of information in 
the record that only the requester would be likely to know.
    (c) Parents of minors, legal guardians, and representatives. Parents 
of minors, legal guardians, and representatives must submit 
identification under paragraph (a) or (b) of this section. Additionally, 
they must present an authenticated copy of:
    (1) The minor's birth certificate, and
    (2) The court order of guardianship, or
    (3) The agreement of representation, where appropriate.



Sec.  1205.14  Granting access.

    (a) The Board may allow a requester to inspect records through 
either of the following methods:
    (1) It may permit the requester to inspect the records personally 
during normal business hours at a Board office or other suitable Federal 
facility closer to the requester; or
    (2) It may mail copies of the records to the requester.
    (b) A requester seeking personal access to records may be 
accompanied by another individual of the requester's choice. Under those 
circumstances, however, the requester must sign a statement authorizing 
the discussion and presentation of the record in the accompanying 
individual s presence.



Sec.  1205.15  Denying access.

    (a) Basis. In accordance with 5 U.S.C. 552a(k)(2), the Board may 
deny access to records that are of an investigatory nature and that are 
compiled for law enforcement purposes. Those requests will be denied 
only where access to them would otherwise be unavailable under Exemption 
(b)(7) of the Freedom of Information Act.
    (b) Form. All denials of access under this section will be made in 
writing and will notify the requester of the right to judicial review.



Sec.  1205.16  Fees.

    (a) No fees will be charged except for making copies of records.
    (b) Photocopies of records duplicated by the Board will be subject 
to a charge of 20 cents a page.
    (c) If the fee to be assessed for any request is less than $100 (the 
cost to the Board of processing and collecting the fee), no charge will 
be made to the requester.
    (d) Fees for copying audio tapes and computer records will be 
charged at a rate representing the actual costs to the Board, as shown 
in paragraphs (d)(1) through (d)(3) of this section.
    (1) Audio tapes will be provided at a charge not to exceed $15 for 
each cassette tape.
    (2) Computer printouts will be provided at a charge of 10 cents a 
page.
    (3) Records reproduced on computer tapes, computer diskettes, or 
other electronic media, will be provided at the actual cost to the 
Board.
    (e) The Board will provide one copy of the amended parts of any 
record it amends free of charge as evidence of the amendment.



                     Subpart C_Amendment of Records



Sec.  1205.21  Request for amendment.

    A request for amendment of a record must be submitted to the 
Regional Director or Chief Administrative Judge of the appropriate 
regional or field office, or to the Clerk of the Board, U.S. Merit 
Systems Protection Board, 1615 M Street, NW., Washington, DC 20419-0001, 
depending on which office has custody of the record. The request must be 
in writing, must be identified conspicuously on the outside of the 
envelope and the letter as a ``PRIVACY ACT REQUEST,'' and must include 
the following information:
    (a) An identification of the record to be amended;
    (b) A description of the amendment requested; and
    (c) A statement of the basis for the amendment, along with 
supporting documentation, if any.

[64 FR 51043, Sept. 21, 1999, as amended at 65 FR 48886, Aug. 10, 2000]

[[Page 76]]



Sec.  1205.22  Action on request.

    (a) Amendment granted. If the Board grants the request for 
amendment, it will notify the requester and provide him or her with a 
copy of the amendment.
    (b) Amendment denied. If the Board denies the request for amendment 
in whole or in part, it will provide the requester with a written notice 
that includes the following information:
    (1) The basis for the denial; and
    (2) The procedures for appealing the denial.



Sec.  1205.23  Time limits.

    The Clerk of the Board, Regional Director, or Chief Administrative 
Judge will acknowledge a request for amendment within 10 workdays of 
receipt of the request in the appropriate office except under the 
unusual circumstances described in paragraphs (a)(1) through (a)(4) of 
Sec.  1205.12 of this part.



                            Subpart D_Appeals



Sec.  1205.31  Submitting appeal.

    (a) A partial or complete denial, by the Clerk of the Board, by the 
Regional Director, or by the Chief Administrative Judge, of a request 
for amendment may be appealed to the Chairman, Merit Systems Protection 
Board, 1615 M Street, NW., Washington, DC 20419-0001 within 10 workdays 
from the date of the denial.
    (b) Any appeal must be in writing, must be clearly and conspicuously 
identified as a Privacy Act appeal on both the envelope and letter, and 
must include:
    (1) A copy of the original request for amendment of the record;
    (2) A copy of the denial; and
    (3) A statement of the reasons why the original denial should be 
overruled.

[64 FR 51043, Sept. 21, 1999, as amended at 65 FR 48886, Aug. 10, 2000]



Sec.  1205.32  Decision on appeal.

    (a) The Chairman will decide the appeal within 30 workdays unless 
the Chairman determines that there is good cause for extension of that 
deadline. If an appeal is improperly labeled, does not contain the 
necessary information, or is submitted to an inappropriate official, the 
time period for processing that appeal will begin when the Chairman 
receives the appeal and the necessary information.
    (b) If the request for amendment of a record is granted on appeal, 
the Chairman will direct that the amendment be made. A copy of the 
amended record will be provided to the requester.
    (c) If the request for amendment of a record is denied, the Chairman 
will notify the requester of the denial and will inform the requester 
of:
    (1) The basis for the denial;
    (2) The right to judicial review of the decision under 5 U.S.C. 
552a(g)(1)(A); and
    (3) The right to file a concise statement with the Board stating the 
reasons why the requester disagrees with the denial. This statement will 
become a part of the requester's record.



PART 1206_OPEN MEETINGS--Table of Contents



                      Subpart A_Purpose and Policy

Sec.
1206.1 Purpose.
1206.2 Policy.
1206.3 Definitions.

                          Subpart B_Procedures

1206.4 Notice of meeting.
1206.5 Change in meeting plans after notice.
1206.6 Decision to close meeting.
1206.7 Transcripts, recordings, or minutes of open and closed meetings; 
          public availability; retention.
1206.8 Providing information to the public.
1206.9 Procedures for expedited closing of meetings.

                      Subpart C_Conduct of Meetings

1206.11 Meeting place.
1206.12 Role of observers.

    Authority: 5 U.S.C. 552b.

    Source: 54 FR 20367, May 11, 1989, unless otherwise noted.



                      Subpart A_Purpose and Policy



Sec.  1206.1  Purpose.

    The purpose of this part is to prescribe the procedures by which the 
Board will conduct open meetings in accordance with the Government in 
the

[[Page 77]]

Sunshine Act (5 U.S.C. 552b) (``the Act'').



Sec.  1206.2  Policy.

    The Board will provide the public with the fullest practicable 
information regarding its decision-making processes, while protecting 
individuals' rights and the Board's ability to carry out its 
responsibilities. Meetings at which the Board members jointly conduct or 
dispose of official business are presumptively open to the public. The 
Board will close those meetings in whole or in part only in accordance 
with the exemptions provided under 5 U.S.C. 552b(c), and only when doing 
so is in the public interest.



Sec.  1206.3  Definitions.

    The following definitions apply to this part:
    (a) Meeting means deliberations of at least two Board members that 
determine or result in the joint conduct of official Board business.
    (b) Member means one of the members of the Merit Systems Protection 
Board.



                          Subpart B_Procedures



Sec.  1206.4  Notice of meeting.

    (a) Notice of a Board meeting will be published in the Federal 
Register at least one week before the meeting. Each notice will include 
the following information:
    (1) The time of the meeting;
    (2) The place where the meeting will be held;
    (3) The subject and agenda of the meeting;
    (4) Whether the meeting is to be open to the public or closed; and
    (5) The name and telephone number of a Board official responsible 
for receiving inquiries regarding the meeting.
    (b) The Board, by majority vote, may provide less than one week's 
notice. When it does so, however, it will provide notice of the meeting 
at the earliest practicable time.



Sec.  1206.5  Change in meeting plans after notice.

    (a) After notice of a meeting has been published, the Board may 
change the time or place of the meeting only if it announces the change 
publicly at the earliest practicable time.
    (b) After notice of a meeting has been published, the Board may not 
change either the subject matter of the meeting or the decision that the 
meeting will be open to the public or closed unless both of the 
following conditions are met:
    (1) By majority, recorded vote, the Board members determine that 
Board business requires the change and that no earlier announcement of 
the change was possible; and
    (2) Notice of the change, and of the individual Board members' vote, 
is published in the Federal Register at the earliest practicable time.



Sec.  1206.6  Decision to close meeting.

    (a) Basis. The Board, by majority vote, may decide to close a 
meeting in accordance with the provisions of 5 U.S.C. 552b(c)(1) to 
552b(c)(10) when closing the meeting is in the public interest.
    (b) General Counsel certification. For every meeting that is closed 
to the public in whole or in part, the General Counsel will certify that 
closing the meeting is proper, and will state the basis for that 
opinion.
    (c) Vote. Within one day after voting to close a meeting, the Board 
will make publicly available a record reflecting the vote of each 
member. In addition, within one day after any vote to close a portion or 
portions of a meeting to the public, the Board will make publicly 
available a full written explanation of its decision to close the 
meeting, together with a list naming all persons expected to attend the 
meeting and identifying their affiliation, unless that disclosure would 
reveal the information that the meeting was closed to protect.



Sec.  1206.7  Transcripts, recordings, or minutes of open and closed meetings; 
public availability; retention.

    (a) Closed meetings. (1) For every meeting, or portion thereof, 
closed pursuant to this part the presiding officer shall prepare a 
statement setting forth the time and place of the meeting and the 
persons present, which statement shall be retained by the Board. For 
each such meeting, or portion thereof,

[[Page 78]]

the Board shall maintain a copy of the General Counsel's certification 
under Sec.  1206.6(b) of this part, a statement from the presiding 
official specifying the time and place of the meeting and naming the 
persons present, a record (which may be part of the transcript) of all 
votes and all documents considered at the meeting, and a complete 
transcript or electronic recording of the proceedings, except that for 
meetings or portions of meetings closed pursuant to section (10) of 5 
U.S.C. 552b(c), the Board may maintain either a transcript, electronic 
recording, or a set of minutes. In lieu of a transcript or electronic 
recording, a set of minutes shall fully and accurately summarize any 
action taken, the reasons therefore and views thereon, documents 
considered and the members' vote on each roll call vote, if any.
    (2) The Board shall make promptly available to the public copies of 
transcripts, recordings, or minutes maintained as provided in accordance 
with this paragraph (a), except to the extent the items therein contain 
information which the Board determines may be withheld pursuant to the 
provisions of 5 U.S.C. 552b(c). Copies of transcripts or minutes, or 
transcriptions of electronic recordings including the identification of 
speakers, shall to the extent determined to be publicly available, be 
furnished to any person, subject to the payment of duplication costs or 
the actual cost of transcription.
    (3) The Board shall maintain a complete verbatim copy of the 
transcript, a complete copy of the minutes, or a complete electronic 
recording of each meeting, or portion of a meeting, closed to the 
public, for a period of at least two (2) years after such meeting or 
until one (1) year after the conclusion of any Board proceeding with 
respect to which the meeting or portion was held whichever occurs later.
    (b) Open meetings. Transcripts or other records will be made of all 
open meetings of the Board. Those records will be made available upon 
request at a fee representing the Board's actual cost of making them 
available.

[76 FR 10755, Feb. 28, 2011]



Sec.  1206.8  Providing information to the public.

    Information available to the public under this part will be made 
available by the Office of the Clerk of the Board, U.S. Merit Systems 
Protection Board, 1615 M Street, NW., Washington, DC 20419. Individuals 
or organizations with a special interest in activities of the Board may 
ask the Office of the Clerk to have them placed on a mailing list for 
receipt of information available under this part.

[54 FR 20367, May 11, 1989, as amended at 65 FR 48886, Aug. 10, 2000]



Sec.  1206.9  Procedures for expedited closing of meetings.

    Instead of following the procedures described in Sec. Sec.  1206.4 
through 1206.8 of this part, and in Sec. Sec.  1206.11 and 1206.12, the 
Board may expedite the closing of its meetings under the following 
conditions by using the following procedures:
    (a) Finding. (1) Most regular Board business consists of reviewing 
initial decisions in cases adjudicated after an opportunity for a 
hearing has been provided. Based on a review of this circumstance, the 
legislative history of the Civil Service Reform Act of 1978 (Pub. L. 95-
454), the Government in the Sunshine Act (5 U.S.C. 552b), and the 
Board's regulations at 5 CFR part 1201, the Board finds that a majority 
of its meetings may properly be closed to the public under 5 U.S.C. 
552b(c)(10) and 552b(d)(4).
    (2) Absent a compelling public interest to the contrary, meetings or 
portions of meetings that can be expected to be closed under these 
procedures include meetings held to consider the following: Petitions 
for review or cases that have been or may be reopened under 5 CFR 
1201.114 through 1201.117; proposals to take action against 
administrative law judges under 5 CFR 1201.131 through 1201.136; and 
actions brought by the Special Counsel under 5 CFR 1201.129.
    (b) Announcement. The Board will announce publicly, at the earliest 
practicable time, the time, place, and subject matter of meetings or 
portions of meetings that are closed under this provision.

[[Page 79]]

    (c) Procedure for closing meetings under this section. At the 
beginning of a meeting or portion of a meeting that is to be closed 
under this section, the Board may, by recorded vote of two of its 
members, decide to close the meeting or a portion of it to public 
observation. The Board may take this action, however, only after it 
receives a certification by the General Counsel under Sec.  1206.6(b) of 
this part.
    (d) Record Availability. When the Board has closed a meeting or 
portion of a meeting under this paragraph, it will make the following 
available as soon as practicable:
    (1) A written record reflecting the vote of each participating 
member of the Board with respect to closing the meeting; and
    (2) The General Counsel certification under Sec.  1206.6(b).



                      Subpart C_Conduct of Meetings



Sec.  1206.11  Meeting place.

    The Board will hold open meetings in meeting rooms designated in the 
public announcements of those meetings. Whenever the number of observers 
is greater than can be accommodated in the designated meeting room, 
however, it will make alternative facilities available to the extent 
possible.



Sec.  1206.12  Role of observers.

    The public may attend open meetings for the sole purpose of 
observation. Observers may not participate in the meetings unless they 
are expressly invited to do so. They also may not create distractions 
that interfere with the conduct and disposition of Board business, and 
they may be asked to leave if they do so. Observers of meetings that are 
partially closed must leave the meeting room when they are asked to do 
so.



PART 1207_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF DISABILITY 
IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE MERIT SYSTEMS PROTECTION BOARD--
Table of Contents



Sec.
1207.101 Purpose.
1207.102 Application.
1207.103 Definitions.
1207.104-1207.109 [Reserved]
1207.110 Notice.
1207.111-1207.119 [Reserved]
1207.120 General prohibitions against discrimination.
1207.121-1207.129 [Reserved]
1207.130 Employment.
1207.131-1207.139 [Reserved]
1207.140 Program accessibility: Discrimination prohibited.
1207.141-1207.149 [Reserved]
1207.150 Program accessibility: Existing facilities.
1207.151 Program accessibility: New construction and alterations.
1207.152-1207.159 [Reserved]
1207.160 Communications.
1207.161-1207.169 [Reserved]
1207.170 Compliance procedures.
1207.171-1207.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 70 FR 24293, May 9, 2005, unless otherwise noted.



Sec.  1207.101  Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of disability in 
programs or activities conducted by Executive agencies or the United 
States Postal Service.



Sec.  1207.102  Application.

    This part applies to all programs or activities conducted by the 
agency, except for programs or activities conducted outside the United 
States that do not involve individuals with disabilities in the United 
States.



Sec.  1207.103  Definitions.

    (a) Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    (b) Auxiliary aids means services or devices that enable persons 
with impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, and other similar

[[Page 80]]

services and devices. Auxiliary aids useful for persons with impaired 
hearing include telephone handset amplifiers, telephones compatible with 
hearing aids, telecommunication devices for deaf persons (TDDs), 
interpreters, notetakers, written materials, and other similar services 
and devices.
    (c) Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    (d) Days means calendar days, unless otherwise stated.
    (e) Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    (f) Historic preservation programs means programs conducted by the 
agency that have preservation of historic properties as a primary 
purpose.
    (g) Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    (h) Individual with a disability means any person who has a physical 
or mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment. The following phrases used in this definition are 
further defined as follows:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities.
    (iii) Also, physical and mental impairment includes, but is not 
limited to, such diseases and conditions as orthopedic, visual, speech, 
and hearing impairments, cerebral palsy, epilepsy, muscular dystrophy, 
multiple sclerosis, cancer, heart disease, diabetes, mental retardation, 
emotional illness, and drug addiction and alcoholism.
    (2) Major life activities include functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (i) of this 
definition but is treated by the agency as having such an impairment.
    (i) Qualified individual with a disability means--
    (1) With respect to any agency program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, an individual with a disability who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (2) With respect to any other program or activity, an individual 
with a disability who meets the essential eligibility requirements for 
participation

[[Page 81]]

in, or receipt of benefits from, that program or activity; and
    (3) Qualified disabled person as that term is defined for purposes 
of employment in 29 CFR 1614.203, which is made applicable to this part 
by Sec.  1207.130.
    (j) Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); and the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810). 
As used in this part, section 504 applies only to programs or activities 
conducted by Executive agencies and not to federally assisted programs.



Sec. Sec.  1207.104-1207.109  [Reserved]



Sec.  1207.110  Notice.

    The agency shall make available to employees, applicants, 
participants, and other interested parties such information regarding 
the provisions of this part and its applicability to the programs or 
activities conducted by the agency, and make such information available 
to them in such manner as the head of the agency finds necessary to 
apprise such persons of the protections against discrimination assured 
them by section 504 and this part.



Sec. Sec.  1207.111-1207.119  [Reserved]



Sec.  1207.120  General prohibitions against discrimination.

    (a) No qualified individual with a disability shall, on the basis of 
such disability, be excluded from participation in, be denied the 
benefits of, or otherwise be subjected to discrimination under any 
program or activity conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of disability--
    (i) Deny a qualified individual with a disability the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with a disability an opportunity 
to participate in or benefit from the aid, benefit, or service that is 
not equal to that afforded others;
    (iii) Provide a qualified individual with a disability with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with disabilities or to any class of individuals with 
disabilities than is provided to others unless such action is necessary 
to provide qualified individuals with disabilities with aid, benefits, 
or services that are as effective as those provided to others;
    (v) Deny a qualified individual with a disability the opportunity to 
participate as a member of planning or advisory boards;
    (vi) Otherwise limit a qualified individual with a disability in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) A qualified individual with a disability may not be excluded 
from participation in any of the agency's programs or activities, even 
though permissibly separate or different programs or activities exist.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with disabilities to 
discrimination on the basis of disability; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with disabilities.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with disabilities from, deny them the 
benefits of, or otherwise subject them to discrimination under any 
program or activity conducted by the agency, or;
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
disabilities.

[[Page 82]]

    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with disabilities to 
discrimination on the basis of disability.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with 
disabilities to discrimination on the basis of disability, nor may the 
agency establish requirements for the programs or activities of 
licensees or certified entities that subject qualified individuals with 
disabilities to discrimination on the basis of disability. However, the 
programs or activities of entities that are licensed or certified by the 
agency are not, themselves, covered by this part.
    (c) The exclusion of nondisabled persons from the benefits of a 
program limited by Federal statute or Executive order to individuals 
with disabilities or the exclusion of a specific class of individuals 
with disabilities from a program limited by Federal statute or Executive 
order to a different class of individuals with disabilities is not 
prohibited by this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with disabilities.



Sec. Sec.  1207.121-1207.129  [Reserved]



Sec.  1207.130  Employment.

    No qualified individual with a disability shall, on the basis of 
such disability, be subject to discrimination in employment under any 
program or activity conducted by the agency. The definitions, 
requirements, and procedures of section 501 of the Rehabilitation Act of 
1973 (29 U.S.C. 791), as established by the Equal Employment Opportunity 
Commission in 29 CFR part 1614, shall apply to employment in federally 
conducted programs or activities.



Sec. Sec.  1207.131-1207.139  [Reserved]



Sec.  1207.140  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  1207.150, no qualified 
individual with disabilities shall, because the agency's facilities are 
inaccessible to or unusable by individuals with disabilities, be denied 
the benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. Sec.  1207.141-1207.149  [Reserved]



Sec.  1207.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by individuals with disabilities. This 
paragraph does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with disabilities;
    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec.  1207.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
individuals with disabilities receive the benefits and services of the 
program or activity.

[[Page 83]]

    (b) Methods--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by individuals with disabilities. The agency is 
not required to make structural changes in existing facilities where 
other methods are effective in achieving compliance with this section. 
The agency, in making alterations to existing buildings, shall meet 
accessibility requirements to the extent compelled by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), and any 
regulations implementing it. In choosing among available methods for 
meeting the requirements of this section, the agency shall give priority 
to those methods that offer programs and activities to qualified 
individuals with disabilities in the most integrated setting 
appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec.  1207.150(a) in historic preservation programs, the agency shall 
give priority to methods that provide physical access to individuals 
with disabilities. In cases where a physical alteration to an historic 
property is not required because of Sec.  1207.150(a)(2) or (3), 
alternative methods of achieving program accessibility include--
    (i) Using audio-visual materials and devices to depict those 
portions of an historic property that cannot otherwise be made 
accessible;
    (ii) Assigning persons to guide individuals with disabilities into 
or through portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.



Sec.  1207.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with disabilities. The definitions, requirements, and 
standards of the Architectural Barriers Act (42 U.S.C. 4151-4157), as 
established in 41 CFR 101-19.600 to 101-19.607, apply to buildings 
covered by this section.



Sec. Sec.  1207.152-1207.159  [Reserved]



Sec.  1207.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with a disability an equal opportunity 
to participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with a disability.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with parties by telephone, 
telecommunication devices for deaf persons or equally effective 
telecommunication systems shall be used to communicate with persons with 
impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a

[[Page 84]]

program or activity or in undue financial and administrative burdens. In 
those circumstances where agency personnel believe that the proposed 
action would fundamentally alter the program or activity or would result 
in undue financial and administrative burdens, the agency has the burden 
of proving that compliance with Sec.  1207.160 would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action required to comply with this section would 
result in such an alteration or such burdens, the agency shall take any 
other action that would not result in such an alteration or such burdens 
but would nevertheless ensure that, to the maximum extent possible, 
individuals with disabilities receive the benefits and services of the 
program or activity.



Sec. Sec.  1207.161-1207.169  [Reserved]



Sec.  1207.170  Compliance procedures.

    (a) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1614 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (b) Allegations of discrimination in the adjudication of a Board 
case. (1) When a party to a case pending before any of the Board's 
judges believes he or she has been subjected to discrimination on the 
basis of disability in the adjudication of the case, the party may raise 
the allegation in a pleading filed with the judge and served on all 
other parties in accordance with 5 CFR 1201.26(b)(2).
    (2) An allegation of discrimination in the adjudication of a Board 
case must be raised within 10 days of the alleged act of discrimination 
or within 10 days from the date the complainant should reasonably have 
known of the alleged discrimination. If the complainant does not submit 
a complaint within that time period, it will be dismissed as untimely 
filed unless a good reason for the delay is shown. The pleading must be 
clearly marked ``5 CFR part 1207 allegation of discrimination in the 
adjudication of a Board case.''
    (3) The judge to whom the case is assigned shall decide the merits 
of any timely allegation that is raised at this stage of adjudication, 
and shall make findings and conclusions regarding the allegation either 
in an interim order or in the initial decision, recommended decision, or 
recommendation. Any request for reconsideration of the administrative 
judge's decision on the disability discrimination claim must be filed in 
accordance with the requirements of 5 CFR 1201.114 and 1201.115.
    (4) If the judge to whom the case was assigned has issued the 
initial decision, recommended decision, or recommendation by the time 
the party learns of the alleged discrimination, the party may raise the 
allegation in a petition for review, cross petition for review, or 
response to the petition or cross petition. The petition for review, 
cross petition for review or response to the petition or cross petition 
must be clearly marked ``5 CFR part 1207 allegation of discrimination in 
the adjudication of a Board case.''
    (5) The Board shall decide the merits of any timely allegation that 
is raised at this stage of adjudication in a final decision.
    (c) All complaints of discrimination on the basis of disability in 
programs and activities conducted by the agency, except for those 
described in paragraphs (a) and (b) of this section, shall be filed 
under the procedures described in this paragraph.
    (1) Who may file. Any person who believes that he or she has been 
subjected to discrimination prohibited by this part, or authorized 
representative of such person, may file a complaint. Any person who 
believes that any specific class of persons has been subjected to 
discrimination prohibited by this part and who is a member of that class 
or the authorized representative of a member of that class may file a 
complaint. A charge on behalf of a person

[[Page 85]]

or member of a class of persons claiming to be aggrieved may be made by 
any person, agency or organization.
    (2) Where and when to file. Complaints shall be filed with the 
Director, Office of Equal Employment Opportunity (EEO Director), Merit 
Systems Protection Board, 1615 M Street, NW., Washington DC 20419, or e-
mailed to [email protected], within thirty-five (35) calendar 
days of the alleged act of discrimination. A complaint filed by personal 
delivery is considered filed on the date it is received by the EEO 
Director. The date of filing by facsimile or e-mail is the date the 
facsimile or e-mail is sent. The date of filing by mail is determined by 
the postmark date; if no legible postmark date appears on the mailing, 
the submission is presumed to have been mailed five days (excluding days 
on which the Board is closed for business) before its receipt. The date 
of filing by commercial overnight delivery is the date the document was 
delivered to the commercial overnight delivery service. The agency shall 
extend the time period for filing a complaint upon a showing of good 
cause. For example, the agency shall extend this time limit if a 
complainant shows that he or she was prevented by circumstances beyond 
his or her control from submitting the matter within the time limits.
    (3) Acceptance of complaint. (i) The agency shall accept a complete 
complaint that is filed in accordance with paragraph (c) of this section 
and over which it has jurisdiction. The EEO Director shall notify the 
complainant of receipt and acceptance of the complaint.
    (ii) If the EEO Director receives a complaint that is not complete, 
he or she shall notify the complainant that additional information is 
needed. If the complainant fails to complete the complaint and return it 
to the EEO Director within 15 days of his or her receipt of the request 
for additional information, the EEO Director shall dismiss the complaint 
with prejudice and shall so inform the complainant.
    (4) Within 60 days of the receipt of a complete complaint for which 
it has jurisdiction, the EEO Director shall notify the complainant of 
the results of the investigation in an initial decision containing--
    (i) Findings of fact and conclusions of law;
    (ii) When applicable, a description of a remedy for each violation 
found; and
    (iii) A notice of the right to appeal.
    (5) Any appeal of the EEO Director's initial decision must be filed 
with the Chairman of the Board, Merit Systems Protection Board, 1615 M 
Street, NW., Washington, DC 20419 by the complainant within 35 days of 
the date the EEO Director issues the decision required by Sec.  
1207.170(c)(4). The agency may extend this time for good cause when a 
complainant shows that circumstances beyond his or her control prevented 
the filing of an appeal within the prescribed time limit. An appeal 
filed by personal delivery is considered filed on the date it is 
received by the Chairman. The date of filing by facsimile is the date of 
the facsimile. The date of filing by mail is determined by the postmark 
date; if no legible postmark date appears on the mailing, the submission 
is presumed to have been mailed five days (excluding days on which the 
Board is closed for business) before its receipt. The date of filing by 
commercial overnight delivery is the date the document was delivered to 
the commercial overnight delivery service. The appeal should be clearly 
marked ``Appeal of Section 504 Decision'' and must contain specific 
objections explaining why the person believes the initial decision was 
factually or legally wrong. A copy of the initial decision being 
appealed should be attached to the appeal letter.
    (6) A timely appeal shall be decided by the Chairman unless the 
Chairman determines, in his or her discretion, that the appeal raises 
policy issues and that the nature of those policy issues warrants a 
decision by the full Board. The full Board shall then decide such 
appeals.
    (7) The Chairman shall notify the complainant of the results of the 
appeal within sixty (60) days of the receipt of the request. If the 
Chairman determines that he or she needs additional information from the 
complainant, he or she shall have sixty (60) days

[[Page 86]]

from the date he or she receives the additional information to make his 
or her determination on the appeal.
    (8) The time limit stated in paragraph (c)(2) may be extended by the 
EEO Director to a period of up to 180 days, and may be extended further 
with the permission of the Assistant Attorney General. The time limit 
stated in paragraph (c)(5) may be extended by the Chairman to a period 
of up to 180 days, and may be extended further with the permission of 
the Assistant Attorney General.
    (9) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.
    (d) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with disabilities.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate entity.

[70 FR 24293, May 9, 2005, as amended at 73 FR 6834, Feb. 6, 2008]



Sec. Sec.  1207.171-1207.999  [Reserved]



PART 1208_PRACTICES AND PROCEDURES FOR APPEALS UNDER THE UNIFORMED SERVICES 
EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT AND THE VETERANS EMPLOYMENT 
OPPORTUNITIES ACT--Table of Contents



                 Subpart A_Jurisdiction and Definitions

Sec.
1208.1 Scope.
1208.2 Jurisdiction.
1208.3 Application of 5 CFR part 1201.
1208.4 Definitions.

                        Subpart B_USERRA Appeals

1208.11 Choice of procedure under USERRA; exhaustion requirement.
1208.12 Time of filing.
1208.13 Content of appeal; request for hearing.
1208.14 Representation by Special Counsel.
1208.15 Remedies.
1208.16 Appeals under another law, rule, or regulation.

                         Subpart C_VEOA Appeals

1208.21 VEOA exhaustion requirement.
1208.22 Time of filing.
1208.23 Content of appeal; request for hearing.
1208.24 Election to terminate MSPB proceeding.
1208.25 Remedies.
1208.26 Appeals under another law, rule, or regulation.

    Authority: 5 U.S.C. 1204(h), 3330a, 3330b; 38 U.S.C. 4331.

    Source: 65 FR 5412, Feb. 4, 2000, unless otherwise noted.



                 Subpart A_Jurisdiction and Definitions



Sec.  1208.1  Scope.

    This part governs appeals filed with the Board under the provisions 
of 38 U.S.C. 4324, as enacted by the Uniformed Services Employment and 
Reemployment Rights Act of 1994 (USERRA), Public Law 103-353, as 
amended, or under the provisions of 5 U.S.C. 3330a, as enacted by the 
Veterans Employment Opportunities Act of 1998 (VEOA), Public Law 105-
339. With respect to USERRA appeals, this part applies to any appeal 
filed with the Board on or after October 13, 1994, without regard as to 
whether the alleged violation occurred before, on, or after October 13, 
1994. With respect to VEOA appeals, this part applies to any appeal 
filed with the Board which alleges that a violation occurred on or after 
October 31, 1998.



Sec.  1208.2  Jurisdiction.

    (a) USERRA. Under 38 U.S.C. 4324, a person entitled to the rights 
and benefits provided by chapter 43 of title 38, United States Code, may 
file an appeal with the Board alleging that a Federal agency employer or 
the Office of Personnel Management has failed or refused, or is about to 
fail or refuse, to comply with a provision of that chapter (other than a 
provision relating to benefits under the Thrift Savings Plan

[[Page 87]]

for Federal employees). In general, the provisions of chapter 43 of 
title 38 that apply to Federal employees guarantee various reemployment 
rights following a period of service in a uniformed service, provided 
the employee satisfies the requirements for coverage under that chapter. 
In addition, chapter 43 of title 38 prohibits discrimination based on a 
person's service--or application or obligation for service--in a 
uniformed service (38 U.S.C. 4311). This prohibition applies with 
respect to initial employment, reemployment, retention in employment, 
promotion, or any benefit of employment.
    (b) VEOA. Under 5 U.S.C. 3330a, a preference eligible who alleges 
that a Federal agency has violated his rights under any statute or 
regulation relating to veterans' preference may file an appeal with the 
Board, provided that he has satisfied the statutory requirements for 
first filing a complaint with the Secretary of Labor and allowing the 
Secretary at least 60 days to attempt to resolve the complaint.



Sec.  1208.3  Application of 5 CFR part 1201.

    Except as expressly provided in this part, the Board will apply 
subparts A (Jurisdiction and Definitions), B (Procedures for Appellate 
Cases), C (Petitions for Review of Initial Decisions), and F 
(Enforcement of Final Decisions and Orders) of 5 CFR part 1201 to 
appeals governed by this part. The Board will apply the provisions of 
subpart H (Attorney Fees (Plus Costs, Expert Witness Fees, and 
Litigation Expenses, Where Applicable) and Damages (Consequential, 
Liquidated, and Compensatory)) of 5 CFR part 1201 regarding awards of 
attorney fees and liquidated damages to appeals governed by this part.

[77 FR 62373, Oct. 12, 2012]



Sec.  1208.4  Definitions.

    (a) Appeal. ``Appeal'' means a request for review of an agency 
action (the same meaning as in 5 CFR Sec.  1201.4(f)) and includes a 
``complaint'' or ``action'' as those terms are used in USERRA (38 U.S.C. 
4324) and a ``complaint'' or ``appeal'' as those terms are used in VEOA 
(5 U.S.C. 3330a).
    (b) Preference eligible. ``Preference eligible'' is defined in 5 
U.S.C. 2108.
    (c) USERRA appeal. ``USERRA appeal'' means an appeal filed under 38 
U.S.C. 4324, as enacted by the Uniformed Services Employment and 
Reemployment Rights Act of 1994 (Public Law 103-353), as amended. The 
term includes an appeal that alleges a violation of a predecessor 
statutory provision of chapter 43 of title 38, United States Code.
    (d) VEOA appeal. ``VEOA appeal'' means an appeal filed under 5 
U.S.C. 3330a, as enacted by the Veterans Employment Opportunities Act of 
1998 (Public Law 105-339).



                        Subpart B_USERRA Appeals



Sec.  1208.11  Choice of procedure under USERRA; exhaustion requirement.

    (a) Choice of procedure. An appellant may file a USERRA appeal 
directly with the Board under this subpart or may file a complaint with 
the Secretary of Labor under 38 U.S.C. 4322.
    (b) Exhaustion requirement. If an appellant files a complaint with 
the Secretary of Labor under 38 U.S.C. 4322, the appellant may not file 
a USERRA appeal with the Board until the Secretary notifies the 
appellant in accordance with 38 U.S.C. 4322(e) that the Secretary's 
efforts have not resolved the complaint. An appellant who seeks 
assistance from the Secretary of Labor under 38 U.S.C. 4321 but does not 
file a complaint with the Secretary under 38 U.S.C. 4322 is not subject 
to the exhaustion requirement of this paragraph.
    (c) Appeals after exhaustion of Department of Labor procedure. When 
an appellant receives notice from the Secretary of Labor in accordance 
with 38 U.S.C. 4322(e) that the Secretary's efforts have not resolved 
the complaint, the appellant may file a USERRA appeal directly with the 
Board or may ask the Secretary to refer the complaint to the Special 
Counsel. If the Special Counsel agrees to represent the appellant, the 
Special Counsel may file a USERRA appeal directly with the Board. If the 
Special Counsel does not agree to represent the appellant, the appellant 
may

[[Page 88]]

file a USERRA appeal directly with the Board.

[65 FR 5412, Feb. 4, 2000, as amended at 65 FR 49896, Aug. 16, 2000]



Sec.  1208.12  Time of filing.

    Under chapter 43 of title 38, United States Code, there is no time 
limit for filing a USERRA appeal with the Board. However, the Board 
encourages appellants to file a USERRA appeal as soon as possible after 
the date of the alleged violation or, if a complaint is filed with the 
Secretary of Labor, as soon as possible after receiving notice from the 
Secretary in accordance with 38 U.S.C. 4322(e) that the Secretary's 
efforts have not resolved the complaint, or, if the Secretary has 
referred the complaint to the Special Counsel and the Special Counsel 
does not agree to represent the appellant, as soon as possible after 
receiving the Special Counsel's notice.

[65 FR 5412, Feb. 4, 2000, as amended at 65 FR 49896, Aug. 16, 2000]



Sec.  1208.13  Content of appeal; request for hearing.

    (a) Content. A USERRA appeal may be in any format, including letter 
form, but must contain the following:
    (1) The nine (9) items or types of information required in 5 CFR 
1201.24(a)(1) through (a)(9);
    (2) Evidence or argument that the appellant has performed service in 
a uniformed service, including the dates of such service (or, where 
applicable, has applied for or has an obligation to perform such 
service), and that the appellant otherwise satisfies the requirements 
for coverage under chapter 43 of title 38, United States Code;
    (3) A statement describing in detail the basis for the appeal, that 
is, the protected right or benefit that was allegedly denied, including 
reference to the provision(s) of chapter 43 of title 38, United States 
Code, allegedly violated if possible.
    (4) If the appellant filed a complaint with the Secretary of Labor 
under 38 U.S.C. 4322(a), evidence of notice under 38 U.S.C. 4322(e) that 
the Secretary's efforts have not resolved the complaint (a copy of the 
Secretary's notice satisfies this requirement); and
    (5) If the appellant's complaint was referred to the Special Counsel 
and the appellant has received notice that the Special Counsel will not 
represent the appellant before the Board, evidence of the Special 
Counsel's notice (a copy of the Special Counsel's notice satisfies this 
requirement).
    (b) Request for hearing. An appellant must submit any request for a 
hearing with the USERRA appeal, or within any other time period the 
judge sets. A hearing may be provided to the appellant once the Board's 
jurisdiction over the appeal is established. The judge may also order a 
hearing if necessary to resolve issues of jurisdiction. The appellant 
has the burden of proof with respect to issues of jurisdiction (5 CFR 
1201.56(a)(2)(i)).
    (c) Electronic filing. An appeal may be filed electronically by 
using the Board's e-Appeal site (https://e-appeal.mspb.gov) in 
accordance with Sec.  1201.14 of this chapter.

[65 FR 5412, Feb. 4, 2000, as amended at 65 FR 49896, Aug. 16, 2000; 68 
FR 59865, Oct. 20, 2003; 69 FR 57631, Sept. 27, 2004]



Sec.  1208.14  Representation by Special Counsel.

    The Special Counsel may represent an appellant in a USERRA appeal 
before the Board. A written statement (in any format) that the appellant 
submitted a written request to the Secretary of Labor that the 
appellant's complaint under 38 U.S.C. 4322(a) be referred to the Special 
Counsel for litigation before the Board, and that the Special Counsel 
has agreed to represent the appellant, will be accepted as the written 
designation of representative required by 5 CFR 1201.31(a). The 
designation of representative may be filed by electronic filing, 
provided the requirements of Sec.  1201.14 of this chapter are 
satisfied.

[69 FR 57631, Sept. 27, 2004]



Sec.  1208.15  Remedies.

    (a) Order for compliance. If the Board determines that a Federal 
agency employer or the Office of Personnel
    Management has not complied with a provision or provisions of 
chapter 43 of title 38, United States Code (other than a provision 
relating to benefits under

[[Page 89]]

the Thrift Savings Plan for Federal employees), the decision of the 
Board (either an initial decision of a judge under 5 CFR 1201.111 or a 
final Board decision under 5 CFR 1201.117) will order the Federal agency 
employer or the Office of Personnel Management, as applicable, to comply 
with such provision(s) and to compensate the appellant for any loss of 
wages or benefits suffered by the appellant because of such lack of 
compliance. Under 38 U.S.C. 4324(c)(3), any compensation received by the 
appellant pursuant to the Board's order shall be in addition to any 
other right or benefit provided for by chapter 43 of title 38, United 
States Code, and shall not diminish any such right or benefit.
    (b) Attorney fees and expenses. If the Board issues a decision 
ordering compliance under paragraph (a) of this section, the Board has 
discretion to order payment of reasonable attorney fees, expert witness 
fees, and other litigation expenses under 38 U.S.C. 4324(c)(4). The 
provisions of subpart H of part 1201 shall govern any proceeding for 
attorney fees and expenses.



Sec.  1208.16  Appeals under another law, rule, or regulation.

    Nothing in USERRA prevents an appellant who may appeal an agency 
action to the Board under any other law, rule, or regulation from 
raising a claim of a USERRA violation in that appeal. The Board will 
treat such a claim as an affirmative defense that the agency action was 
not in accordance with law (5 CFR 1201.56(b)(3)).



                         Subpart C_VEOA Appeals



Sec.  1208.21  VEOA exhaustion requirement.

    (a) General rule. Before an appellant may file a VEOA appeal with 
the Board, the appellant must first file a complaint under 5 U.S.C. 
3330a(a) with the Secretary of Labor within 60 days after the date of 
the alleged violation. In addition, either the Secretary must have sent 
the appellant written notification that efforts to resolve the complaint 
were unsuccessful or, if the Secretary has not issued such notification 
and at least 60 days have elapsed from the date the complaint was filed, 
the appellant must have provided written notification to the Secretary 
of the appellant's intention to file an appeal with the Board.
    (b) Equitable tolling; extension of filing deadline. In 
extraordinary circumstances, the appellant's 60-day deadline for filing 
a complaint with the Secretary is subject to the doctrine of equitable 
tolling, which permits the Board to extend the deadline where the 
appellant, despite having diligently pursued his or her rights, was 
unable to make a timely filing. Examples include cases involving 
deception or in which the appellant filed a defective pleading during 
the statutory period.

[77 FR 62373, Oct. 12, 2012]



Sec.  1208.22  Time of filing.

    (a) Unless the Secretary of Labor has notified the appellant that 
the Secretary's efforts have not resolved the VEOA complaint, a VEOA 
appeal may not be filed with the Board before the 61st day after the 
date on which the appellant filed the complaint under 5 U.S.C. 3330a(a) 
with the Secretary.
    (b) If the Secretary of Labor notifies the appellant that the 
Secretary's efforts have not resolved the VEOA complaint and the 
appellant elects to appeal to the Board under 5 U.S.C. 3330a(d), the 
appellant must file the VEOA appeal with the Board within 15 days after 
the date of receipt of the Secretary's notice. A copy of the Secretary's 
notice must be submitted with the appeal.
    (c) Equitable tolling; extension of filing deadline. In 
extraordinary circumstances, the appellant's 15-day deadline for filing 
an appeal with the MSPB is subject to the doctrine of equitable tolling, 
which permits the Board to extend the deadline where the appellant, 
despite having diligently pursued his or her rights, was unable to make 
a timely filing. Examples include cases involving deception or in which 
the appellant filed a defective pleading during the statutory period.

[65 FR 5412, Feb. 4, 2000, as amended at 65 FR 49896, Aug. 16, 2000; 77 
FR 62373, Oct. 12, 2012; 78 FR 23458, Apr. 19, 2013]

[[Page 90]]



Sec.  1208.23  Content of appeal; request for hearing.

    (a) Content. A VEOA appeal may be in any format, including letter 
form, but must contain the following:
    (1) The nine (9) items or types of information required in 5 CFR 
1201.24(a)(1) through (a)(9);
    (2) Evidence or argument that the appellant is a preference 
eligible;
    (3) A statement identifying the statute or regulation relating to 
veterans' preference that was allegedly violated, an explanation of how 
the provision was violated, and the date of the violation;
    (4) Evidence that a complaint under 5 U.S.C. 3330a(a) was filed with 
the Secretary of Labor, including the date the complaint was filed; and
    (5) Evidence identifying the specific veterans' preference claims 
that the appellant raised before the Secretary; and
    (b) Request for hearing. An appellant must submit any request for a 
hearing with the VEOA appeal, or within any other time period the judge 
sets. A hearing may be provided to the appellant once the Board's 
jurisdiction over the appeal is established and it has been determined 
that the appeal is timely. The judge may also order a hearing if 
necessary to resolve issues of jurisdiction or timeliness. The appellant 
has the burden of proof with respect to issues of jurisdiction and 
timeliness (5 CFR 1201.56(a)(2)(i) and (ii)).
    (c) Electronic filing. An appeal may be filed electronically by 
using the Board's e-Appeal site (https://e-appeal.mspb.gov) in 
accordance with Sec.  1201.14 of this chapter.

[65 FR 5412, Feb. 4, 2000, as amended at 65 FR 49896, Aug. 16, 2000; 68 
FR 59865, Oct. 20, 2003; 69 FR 57631, Sept. 27, 2004; 77 FR 62373, Oct. 
12, 2012]

    Editorial Note: At 77 FR 62373, Oct. 12, 2012, Sec.  1208.23 was 
amended by revising paragraph (a)(6); however, the amendatory 
instruction could not be followed because the paragraph could not be 
found in the section.



Sec.  1208.24  Election to terminate MSPB proceeding.

    (a) Election to terminate. At any time beginning on the 121st day 
after an appellant files a VEOA appeal with the Board, if a judicially 
reviewable Board decision on the appeal has not been issued, the 
appellant may elect to terminate the Board proceeding as provided under 
5 U.S.C. 3330b and file a civil action with an appropriate United States 
district court. Such election must be in writing, signed, filed with the 
Board office where the appeal is being processed, and served on the 
parties. The election is effective immediately on the date of receipt by 
the Board office where the appeal is being processed. The election may 
be filed by electronic filing, provided the requirements of Sec.  
1201.14 of this chapter are satisfied.
    (b) Termination order. Following receipt by the Board of an 
appellant's written election to terminate the Board proceeding, a 
termination order will be issued to document the termination of the 
proceeding. The termination order will state that the proceeding was 
terminated as of the date of receipt of the appellant's written 
election. Such an order is neither an initial decision under 5 CFR 
1201.111 nor a final Board decision and is not subject to a petition for 
review in accordance with subpart C of part 1201, a petition for 
enforcement in accordance with subpart F of part 1201, or a petition for 
judicial review.

[65 FR 5412, Feb. 4, 2000, as amended at 68 FR 59865, Oct. 20, 2003; 69 
FR 57631, Sept. 27, 2004]



Sec.  1208.25  Remedies.

    (a) Order for compliance. If the Board determines that a Federal 
agency has violated the appellant's VEOA rights, the decision of the 
Board (either an initial decision of a judge under 5 CFR 1201.111 or a 
final Board decision under 5 CFR 1201.117) will order the agency to 
comply with the statute or regulation violated and to compensate the 
appellant for any loss of wages or benefits suffered by the appellant 
because of the violation. If the Board determines that the violation was 
willful, it will order the agency to pay the appellant an amount equal 
to back pay as liquidated damages.
    (b) Attorney fees and expenses. If the Board issues a decision 
ordering compliance under paragraph (a) of this section, the Board will 
order payment of reasonable attorney fees, expert witness fees, and 
other litigation expenses.

[[Page 91]]

The provisions of subpart H of part 1201 shall govern any proceeding for 
attorney fees and expenses.



Sec.  1208.26  Appeals under another law, rule, or regulation.

    (a) The VEOA provides that 5 U.S.C. 3330a shall not be construed to 
prohibit a preference eligible from appealing directly to the Board from 
any action that is appealable under any other law, rule, or regulation, 
in lieu of administrative redress under VEOA (5 U.S.C. 3330a(e)(1)). An 
appellant may not pursue redress for an alleged violation of veterans' 
preference under VEOA at the same time he pursues redress for such 
violation under any other law, rule, or regulation (5 U.S.C. 
3330a(e)(2)).
    (b) An appellant who elects to appeal to the Board under another 
law, rule, or regulation must comply with the provisions of subparts B 
and C of 5 CFR part 1201, including the time of filing requirement of 5 
CFR 1201.22(b)(1).



PART 1209_PRACTICES AND PROCEDURES FOR APPEALS AND STAY REQUESTS 
OF PERSONNEL ACTIONS ALLEGEDLY BASED ON WHISTLEBLOWING 
OR OTHER PROTECTED ACTIVITY--Table of Contents



                 Subpart A_Jurisdiction and Definitions

Sec.
1209.1 Scope.
1209.2 Jurisdiction.
1209.3 Application of 5 CFR part 1201.
1209.4 Definitions.

                            Subpart B_Appeals

1209.5 Time of filing.
1209.6 Content of appeal; right to hearing.
1209.7 Burden and degree of proof.

                         Subpart C_Stay Requests

1209.8 Filing a request for a stay.
1209.9 Content of stay request and response.
1209.10 Hearing and order ruling on stay request.
1209.11 Duration of stay; interim compliance.

             Subpart D_Reports on Applications for Transfers

1209.12 Filing of agency reports.

               Subpart E_Referrals to the Special Counsel

1209.13 Referral of findings to the Special Counsel.

    Authority: 5 U.S.C. 1204, 1221, 2302(b)(8) and (b)(9)(A)(i), (B), 
(C), or (D), and 7701.

    Source: 55 FR 28592, July 12, 1990, unless otherwise noted.



                 Subpart A_Jurisdiction and Definitions



Sec.  1209.1  Scope.

    This part governs any appeal or stay request filed with the Board by 
an employee, former employee, or applicant for employment where the 
appellant alleges that a personnel action defined in 5 U.S.C. 2302(a)(2) 
was threatened, proposed, taken, or not taken because of the appellant's 
whistleblowing or other protected activity activities. Included are 
individual right of action appeals authorized by 5 U.S.C. 1221(a), 
appeals of otherwise appealable actions allegedly based on the 
appellant's whistleblowing or other protected activity, and requests for 
stays of personnel actions allegedly based on whistleblowing or other 
protected activity.

[78 FR 39546, July 2, 2013]



Sec.  1209.2  Jurisdiction.

    (a) Generally. Under 5 U.S.C. 1221(a), an employee, former employee, 
or applicant for employment may appeal to the Board from agency 
personnel actions alleged to have been threatened, proposed, taken, or 
not taken because of the appellant's whistleblowing or other protected 
activity.
    (b) Appeals authorized. The Board exercises jurisdiction over:
    (1) Individual right of action (IRA) appeals. These are authorized 
by 5 U.S.C. 1221(a) with respect to personnel actions listed in 
1209.4(a) of this part that are allegedly threatened, proposed, taken, 
or not taken because of the appellant's whistleblowing or other 
protected activity. If the action is not otherwise directly appealable 
to the Board, the appellant must seek corrective action from the Special 
Counsel before appealing to the Board.


[[Page 92]]


    Example 1: An agency gives Employee X a performance evaluation under 
5 U.S.C. chapter 43 that rates him as ``minimally satisfactory.'' 
Employee X believes that the agency has rated him ``minimally 
satisfactory'' because he reported that his supervisor embezzled public 
funds in violation of Federal law and regulation. Because a performance 
evaluation is not an otherwise appealable action, Employee X must seek 
corrective action from the Special Counsel before appealing to the Board 
or before seeking a stay of the evaluation. If Employee X appeals the 
evaluation to the Board after the Special Counsel proceeding is 
terminated or exhausted, his appeal is an IRA appeal.
    Example 2: As above, an agency gives Employee X a performance 
evaluation under 5 U.S.C. chapter 43 that rates him as ``minimally 
satisfactory.'' Employee X believes that the agency has rated him 
``minimally satisfactory'' because he previously filed a Board appeal of 
the agency's action suspending him without pay for 15 days. Whether the 
Board would have jurisdiction to review Employee X's performance rating 
as an IRA appeal depends on whether his previous Board appeal involved a 
claim of retaliation for whistleblowing. If it did, the Board could 
review the performance evaluation in an IRA appeal because the employee 
has alleged a violation of 5 U.S.C. 2302(b)(9)(A)(i). If the previous 
appeal did not involve a claim of retaliation for whistleblowing, there 
might be a prohibited personnel practice under subsection (b)(9)(A)(ii), 
but Employee X could not establish jurisdiction over an IRA appeal. 
Similarly, if Employee X believed that the current performance appraisal 
was retaliation for his previous protected equal employment opportunity 
(EEO) activity, there might be a prohibited personnel practice under 
subsection (b)(9)(A)(ii), but Employee X could not establish 
jurisdiction over an IRA appeal.
    Example 3: As above, an agency gives Employee X a performance 
evaluation under 5 U.S.C. chapter 43 that rates him as ``minimally 
satisfactory.'' Employee X believes that the agency has rated him 
``minimally satisfactory'' because he testified on behalf of a co-worker 
in an EEO proceeding. The Board would have jurisdiction over the 
performance evaluation in an IRA appeal because the appellant has 
alleged a violation of 5 U.S.C. 2302(b)(9)(B).
    Example 4: Citing alleged misconduct, an agency proposes Employee 
Y's removal. While that removal action is pending, Employee Y files a 
complaint with OSC alleging that the proposed removal was initiated in 
retaliation for her having disclosed that an agency official embezzled 
public funds in violation of Federal law and regulation. OSC 
subsequently issues a letter notifying Employee Y that it has terminated 
its investigation of the alleged retaliation with respect to the 
proposed removal. Employee Y may file an IRA appeal with respect to the 
proposed removal.

    (2) Otherwise appealable action appeals. These are appeals to the 
Board under laws, rules, or regulations other than 5 U.S.C. 1221(a) that 
include an allegation that the action was based on the appellant's 
whistleblowing or other protected activity. Otherwise appealable actions 
are listed in 5 CFR 1201.3(a). An individual who has been subjected to 
an otherwise appealable action must make an election of remedies as 
described in 5 U.S.C. 7121(g) and paragraphs (c) and (d) of this 
section.

    Example 5: Same as Example 4 above. While the OSC complaint with 
respect to the proposed removal is pending, the agency effects the 
removal action. OSC subsequently issues a letter notifying Employee Y 
that it has terminated its investigation of the alleged retaliation with 
respect to the proposed removal. With respect to the effected removal, 
Employee Y can elect to appeal that action directly to the Board or to 
proceed with a complaint to OSC. If she chooses the latter option, she 
may file an IRA appeal when OSC has terminated its investigation, but 
the only issue that will be adjudicated in that appeal is whether she 
proves that her protected disclosure was a contributing factor in the 
removal action and, if so, whether the agency can prove by clear and 
convincing evidence that it would have removed Employee Y in the absence 
of the protected disclosure. If she instead files a direct appeal, the 
agency must prove its misconduct charges, nexus, and the reasonableness 
of the penalty, and Employee Y can raise any affirmative defenses she 
might have.

    (c) Issues before the Board in IRA appeals. In an individual right 
of action appeal, the only merits issues before the Board are those 
listed in 5 U.S.C. 1221(e), i.e., whether the appellant has demonstrated 
that whistleblowing or other protected activity was a contributing 
factor in one or more covered personnel actions and, if so, whether the 
agency has demonstrated by clear and convincing evidence that it would 
have taken the same personnel action(s) in the absence of the 
whistleblowing or other protected activity. The appellant may not raise 
affirmative defenses, such as claims of discrimination or harmful 
procedural error. In an IRA appeal that concerns an adverse action under 
5 U.S.C. 7512,

[[Page 93]]

the agency need not prove its charges, nexus, or the reasonableness of 
the penalty, as a requirement under 5 U.S.C. 7513(a), i.e., that its 
action is taken ``only for such cause as will promote the efficiency of 
the service.'' However, the Board may consider the strength of the 
agency's evidence in support of its adverse action in determining 
whether the agency has demonstrated by clear and convincing evidence 
that it would have taken the same personnel action in the absence of the 
whistleblowing or other protected activity.
    (d) Elections under 5 U.S.C. 7121(g). (1) Under 5 U.S.C. 7121(g)(3), 
an employee who believes he or she was subjected to a covered personnel 
action in retaliation for whistleblowing or other protected activity 
``may elect not more than one'' of 3 remedies: An appeal to the Board 
under 5 U.S.C. 7701; a negotiated grievance under 5 U.S.C. 7121(d); or 
corrective action under subchapters II and III of 5 U.S.C. chapter 12, 
i.e., a complaint filed with the Special Counsel (5 U.S.C. 1214), which 
can be followed by an IRA appeal filed with the Board (5 U.S.C. 1221). 
Under 5 U.S.C. 7121(g)(4), an election is deemed to have been made based 
on which of the 3 actions the individual files first.
    (2) In the case of an otherwise appealable action as described in 
paragraph (b)(2) of this section, an employee who files a complaint with 
OSC prior to filing an appeal with the Board has elected corrective 
action under subchapters II and III of 5 U.S.C. chapter 12, i.e., a 
complaint filed with OSC, which can be followed by an IRA appeal with 
the Board. As described in paragraph (c) of this section, the IRA appeal 
in such a case is limited to resolving the claim(s) of reprisal for 
whistleblowing or other protected activity.
    (e) Elements and Order of Proof. Once jurisdiction has been 
established, the merits of a claim of retaliation for whistleblowing or 
other protected activity will be adjudicated as follows:
    (1) The appellant must establish by preponderant evidence that he or 
she engaged in whistleblowing or other protected activity and that his 
or her whistleblowing or other protected activity was a contributing 
factor in a covered personnel action. An appellant may establish the 
contributing factor element through circumstantial evidence, such as 
evidence that the official taking the personnel action knew of the 
disclosure or protected activity, and that the personnel action occurred 
within a period of time such that a reasonable person could conclude 
that the disclosure or protected activity was a contributing factor in 
the personnel action.
    (2) If a finding has been made that a protected disclosure or other 
protected activity was a contributing factor in one or more covered 
personnel actions, the Board will order corrective action unless the 
agency demonstrates by clear and convincing evidence that it would have 
taken the same personnel action in the absence of such disclosure or 
activity.

[78 FR 39546, July 2, 2013]



Sec.  1209.3  Application of 5 CFR part 1201.

    Except as expressly provided in this part, the Board will apply 
subparts A, B, C, E, F, and G of 5 CFR part 1201 to appeals and stay 
requests governed by this part. The Board will apply the provisions of 
subpart H of part 1201 regarding awards of attorney fees, compensatory 
damages, and consequential damages under 5 U.S.C. 1221(g) to appeals 
governed by this part.

[78 FR 39547, July 2, 2013]



Sec.  1209.4  Definitions.

    (a) Personnel action means, as to individuals and agencies covered 
by 5 U.S.C. 2302:
    (1) An appointment;
    (2) A promotion;
    (3) An adverse action under chapter 75 of title 5, United States 
Code or other disciplinary or corrective action;
    (4) A detail, transfer, or reassignment;
    (5) A reinstatement;
    (6) A restoration;
    (7) A reemployment;
    (8) A performance evaluation under chapter 43 of title 5, United 
States Code;
    (9) A decision concerning pay, benefits, or awards, or concerning 
education or training if the education or training may reasonably be 
expected to

[[Page 94]]

lead to an appointment, promotion, performance evaluation, or other 
personnel action;
    (10) A decision to order psychiatric testing or examination;
    (11) The implementation or enforcement of any nondisclosure policy, 
form, or agreement; and
    (12) Any other significant change in duties, responsibilities, or 
working conditions.
    (b) Whistleblowing is the making of a protected disclosure, that is, 
a formal or informal communication or transmission, but does not include 
a communication concerning policy decisions that lawfully exercise 
discretionary authority, unless the employee or applicant providing the 
disclosure reasonably believes that the disclosure evidences any 
violation of any law, rule, or regulation, gross mismanagement, a gross 
waste of funds, an abuse of authority, or a substantial and specific 
danger to public health or safety. It does not include a disclosure that 
is specifically prohibited by law or required by Executive order to be 
kept secret in the interest of national defense or foreign affairs, 
unless such information is disclosed to Congress, the Special Counsel, 
the Inspector General of an agency, or an employee designated by the 
head of the agency to receive it.
    (c) Other protected activity means any of the following:
    (1) The exercise of any appeal, complaint, or grievance right 
granted by any law, rule, or regulation with regard to remedying a 
violation of 5 U.S.C. 2302(b)(8), i.e., retaliation for whistleblowing;
    (2) Testifying for or otherwise lawfully assisting any individual in 
the exercise of any right granted by any law, rule, or regulation;
    (3) Cooperating with or disclosing information to Congress, the 
Inspector General of an agency, or the Special Counsel, in accordance 
with applicable provisions of law; or
    (4) Refusing to obey an order that would require the individual to 
violate a law.
    (d) Contributing factor means any disclosure that affects an 
agency's decision to threaten, propose, take, or not take a personnel 
action with respect to the individual making the disclosure.
    (e) Clear and convincing evidence is that measure or degree of proof 
that produces in the mind of the trier of fact a firm belief as to the 
allegations sought to be established. It is a higher standard than 
``preponderance of the evidence'' as defined in 5 CFR 1201.56(c)(2).
    (f) Reasonable belief. An employee or applicant may be said to have 
a reasonable belief when a disinterested observer with knowledge of the 
essential facts known to and readily ascertainable by the employee or 
applicant could reasonably conclude that the actions of the Government 
evidence the violation, mismanagement, waste, abuse, or danger in 
question.

[55 FR 28592, July 12, 1990, as amended at 62 FR 17048, Apr. 9, 1997; 77 
FR 62374, Oct. 12, 2012; 78 FR 39547, July 2, 2013]



                            Subpart B_Appeals



Sec.  1209.5  Time of filing.

    (a) General rule. The appellant must seek corrective action from the 
Special Counsel before appealing to the Board unless the action being 
appealed is otherwise appealable directly to the Board and the appellant 
has elected a direct appeal. (See Sec.  1209.2(d) regarding election of 
remedies under 5 U.S.C. 7121(g)). Where the appellant has sought 
corrective action, the time limit for filing an appeal with the Board is 
governed by 5 U.S.C. 1214(a)(3). Under that section, an appeal must be 
filed:
    (1) No later than 65 days after the date of issuance of the Special 
Counsel's written notification to the appellant that it was terminating 
its investigation of the appellant's allegations or, if the appellant 
shows that the Special Counsel's notification was received more than 5 
days after the date of issuance, within 60 days after the date the 
appellant received the Special Counsel's notification; or,
    (2) At any time after the expiration of 120 days, if the Special 
Counsel has not notified the appellant that it will seek corrective 
action on the appellant's behalf within 120 days of the date of filing 
of the request for corrective action.

[[Page 95]]

    (b) Equitable tolling; extension of filing deadline. The appellant's 
deadline for filing an individual right of action appeal with the Board 
after receiving written notification from the Special Counsel that it is 
terminating its investigation of his or her allegations is subject to 
the doctrine of equitable tolling, which permits the Board to extend the 
deadline where the appellant, despite having diligently pursued his or 
her rights, was unable to make a timely filing. Examples include cases 
involving deception or in which the appellant filed a defective pleading 
during the statutory period.
    (c) Appeals after a stay request. Where an appellant has filed a 
request for a stay with the Board without first filing an appeal of the 
action, the appeal must be filed within 30 days after the date the 
appellant receives the order ruling on the stay request. Failure to 
timely file the appeal will result in the termination of any stay that 
has been granted unless a good reason for the delay is shown.

[55 FR 28592, July 12, 1990, as amended at 59 FR 31110, June 17, 1994; 
62 FR 59993, Nov. 6, 1997; 77 FR 62374, Oct. 12, 2012]



Sec.  1209.6  Content of appeal; right to hearing.

    (a) Content. Only an appellant, his or her designated 
representative, or a party properly substituted under 5 CFR 1201.35 may 
file an appeal. Appeals may be in any format, including letter form, but 
must contain the following:
    (1) The nine (9) items or types of information required in 5 CFR 
1201.24 (a)(1) through (a)(9);
    (2) Where the appellant first sought corrective action from the 
Special Counsel, evidence that the appeal is timely filed;
    (3) The name(s) and position(s) held by the employee(s) who took the 
action(s), and a chronology of facts concerning the action(s);
    (4) A description of each disclosure evidencing whistleblowing or 
other protected activity as defined in Sec.  1209.4(b) of this part; and
    (5) Evidence or argument that:
    (i) The appellant was or will be subject to a personnel action as 
defined in Sec.  1209.4(a) of this part, or that the agency has 
threatened to take or not to take such a personnel action, together with 
specific indications giving rise to the appellant's apprehensions; and
    (ii) The personnel action was or will be based wholly or in part on 
the whistleblowing disclosure or other protected activity, as described 
in Sec.  1209.4(b) of this part.
    (6) An appellant who first sought corrective action from the Special 
Counsel may satisfy the requirements of paragraphs (a)(3) through (a)(5) 
of this section by filing with the appeal a copy of Part 2: Reprisal For 
Whistleblowing of the complaint form submitted to the Office of Special 
Counsel (Form OSC-11, Complaint of Possible Prohibited Personnel 
Practice or Other Prohibited Activity, Rev. 8/00), together with a copy 
of any continuation sheet with answers to Part 2 questions filed with 
the Office of Special Counsel, and any supplement to Part 2 of the 
original complaint filed with the Office of Special Counsel or completed 
by the Office of Special Counsel and furnished to the appellant.
    (b) Right to hearing. An appellant generally has a right to a 
hearing if the appeal has been timely filed and the Board has 
jurisdiction over the appeal.
    (c) Timely request. The appellant must submit any request for a 
hearing with the appeal, or within any other time period the judge sets 
for that purpose. If the appellant does not make a timely request for a 
hearing, the right to a hearing is waived.
    (d) Electronic filing. An appeal may be filed electronically by 
using the Board's e-Appeal site (https://e-appeal.mspb.gov) in 
accordance with Sec.  1201.14 of this chapter.

[55 FR 28592, July 12, 1990, as amended at 65 FR 67608, Nov. 13, 2000; 
68 FR 59865, Oct. 20, 2003; 69 FR 57631, Sept. 27, 2004; 77 FR 62375, 
Oct. 12, 2012; 78 FR 39548, July 2, 2013]



Sec.  1209.7  Burden and degree of proof.

    (a) Subject to the exception stated in paragraph (b) of this 
section, in any case involving a prohibited personnel practice described 
in 5 U.S.C. 2302(b)(8) or (b)(9)(A)(i), (B), (C), or (D), the Board will 
order appropriate corrective action if the appellant shows by a 
preponderance of the evidence that the disclosure or other protected 
activity was a contributing factor in the personnel action that was 
threatened, proposed,

[[Page 96]]

taken, or not taken against the appellant.
    (b) However, even where the appellant meets the burden stated in 
paragraph (a) of this section, the Board will not order corrective 
action if the agency shows by clear and convincing evidence that it 
would have threatened, proposed, taken, or not taken the same personnel 
action in the absence of the disclosure or other protected activity.

[78 FR 39548, July 2, 2013]



                         Subpart C_Stay Requests



Sec.  1209.8  Filing a request for a stay.

    (a) Time of filing. An appellant may request a stay of a personnel 
action allegedly based on whistleblowing at any time after the appellant 
becomes eligible to file an appeal with the Board under Sec.  1209.5 of 
this part, but no later than the time limit set for the close of 
discovery in the appeal. The request may be filed prior to, simultaneous 
with, or after the filing of an appeal.
    (b) Place of filing. Requests must be filed with the appropriate 
Board regional or field office as set forth in 5 CFR 1201.4(d).
    (c) Service of stay request. A stay request must be simultaneously 
served upon the Board's regional or field office and upon the agency's 
local servicing personnel office or the agency's designated 
representative, if any. A certificate of service stating how and when 
service was made must accompany the stay request.
    (d) Method of filing. A stay request must be filed with the 
appropriate Board regional or field office by mail, by facsimile, by 
commercial or personal delivery, or by electronic filing in accordance 
with Sec.  1201.14 of this chapter.

[55 FR 28592, July 12, 1990, as amended at 58 FR 36345, July 7, 1993, 59 
FR 65243, Dec. 19, 1994; 68 FR 59865, Oct. 20, 2003; 69 FR 57631, Sept. 
27, 2004]



Sec.  1209.9  Content of stay request and response.

    (a) Only an appellant, his or her designated representative, or a 
party properly substituted under 5 CFR 1201.35 may file a stay request. 
The request may be in any format, and must contain the following:
    (1) The name, address, and telephone number of the appellant, and 
the name and address of the acting agency;
    (2) The name, address, and telephone number of the appellant's 
representative, if any;
    (3) The signature of the appellant or, if the appellant has a 
representative, of the representative;
    (4) A chronology of facts, including a description of the 
appellant's disclosure and the action that the agency has taken or 
intends to take;
    (5) Where the appellant first sought corrective action from the 
Special Counsel, evidence that the stay request is timely filed;
    (6) Evidence and/or argument showing that:
    (i) The action threatened, proposed, taken, or not taken is a 
personnel action, as defined in Sec.  1209.4(a) of this part;
    (ii) The action complained of was based on whistleblowing or other 
protected activity as defined in Sec.  1209.4(b) of this part; and
    (iii) There is a substantial likelihood that the appellant will 
prevail on the merits of the appeal;
    (7) Evidence and/or argument addressing how long the stay should 
remain in effect; and
    (8) Any documentary evidence that supports the stay request.
    (b) An appellant may provide evidence and/or argument addressing the 
question of whether a stay would impose extreme hardship on the agency.
    (c) Agency response. (1) The agency's response to the stay request 
must be received by the appropriate Board regional or field office 
within five days (excluding Saturdays, Sundays, and Federal holidays) of 
the date of service of the stay request on the agency.
    (2) The agency's response must contain the following:
    (i) Evidence and/or argument addressing whether there is a 
substantial likelihood that the appellant will prevail on the merits of 
the appeal;
    (ii) Evidence and/or argument addressing whether the grant of a stay 
would result in extreme hardship to the agency; and

[[Page 97]]

    (iii) Any documentation relevant to the agency's position on these 
issues.

[55 FR 28592, July 12, 1990, as amended at 59 FR 65243, Dec. 19, 1994; 
78 FR 39548, July 2, 2013]



Sec.  1209.10  Hearing and order ruling on stay request.

    (a) Hearing. The judge may hold a hearing on the stay request.
    (b) Order ruling on stay request. (1) The judge must rule upon the 
stay request within 10 days (excluding Saturdays, Sundays, and Federal 
holidays) after the request is received by the appropriate Board 
regional or field office.
    (2) The judge's ruling on the stay request must set forth the 
factual and legal bases for the decision. The judge must decide whether 
there is a substantial likelihood that the appellant will prevail on the 
merits of the appeal, and whether the stay would result in extreme 
hardship to the agency.
    (3) If the judge grants a stay, the order must specify the effective 
date and duration of the stay.

[55 FR 28592, July 12, 1990, as amended at 59 FR 65243, Dec. 19, 1994]



Sec.  1209.11  Duration of stay; interim compliance.

    (a) Duration of stay. A stay becomes effective on the date specified 
in the judge's order. The stay will remain in effect for the time period 
set forth in the order or until the Board issues a final decision on the 
appeal of the underlying personnel action that was stayed, or until the 
Board vacates or modifies the stay, whichever occurs first.
    (b) Interim compliance. An agency must immediately comply with an 
order granting a stay request. Although the order granting a stay 
request is not a final order, petitions for enforcement of such orders 
are governed by 5 CFR part 1201, subpart F.



             Subpart D_Reports on Applications for Transfers



Sec.  1209.12  Filing of agency reports.

    When an employee who has applied for a transfer to another position 
in an Executive agency under 5 U.S.C. 3352 asks the agency head to 
review a rejection of his or her application for transfer, the agency 
head must complete the review and provide a written statement of 
findings to the employee and the Clerk of the Board within 30 days after 
receiving the request.



               Subpart E_Referrals to the Special Counsel



Sec.  1209.13  Referral of findings to the Special Counsel.

    When the Board determines in a proceeding under this part that there 
is reason to believe that a current Federal employee may have committed 
a prohibited personnel practice described at 5 U.S.C. 2302(b)(8) or 
(b)(9)(A)(i), (B), (C), or (D), the Board will refer the matter to the 
Special Counsel to investigate and take appropriate action under 5 
U.S.C. 1215.

[78 FR 39548, July 2, 2013]



PART 1210_PRACTICES AND PROCEDURES FOR AN APPEAL OF A REMOVAL 
OR TRANSFER OF A SENIOR EXECUTIVE SERVICE EMPLOYEE BY THE SECRETARY 
OF THE DEPARTMENT OF VETERANS AFFAIRS--Table of Contents



Sec.
1210.1 Authority to issue decisions under this part.
1210.2 Definitions.
1210.3 Application of practices and procedures to appeals filed under 
          this part.
1210.4 Waiver of MSPB regulations.
1210.5 Determination of the Secretary effecting a removal or transfer; 
          required notice of expedited procedures; initial disclosures.
1210.6 Electronic filing procedures; expedited filing procedures.
1210.7 Filing an appeal and a response to an appeal.
1210.8 Stay requests.
1210.9 Disclosures of information required with initial appeal.
1210.10 Representatives.
1210.11 Initial status conference; scheduling the hearing.
1210.12 Discovery.
1210.13 Deadlines for filing motions.
1210.14 Sanctions for failure to meet deadlines.
1210.15 Agency duty to assist in expedited review.
1210.16 Intervenors and amici curiae.
1210.17 Hearings.

[[Page 98]]

1210.18 Burden of proof, standard of review, and penalty.
1210.19 Bench decisions.
1210.20 Effective date of a decision issued by an administrative judge; 
          continuing jurisdiction over certain ancillary matters.

    Authority: 5 U.S.C. 1204 and 7701, and 38 U.S.C. 713.

    Source: 79 FR 48943, Aug. 19, 2014, unless otherwise noted.



Sec.  1210.1  Authority to issue decisions under this part.

    (a) Under 38 U.S.C. 713(d)(2)(A), as created by the Veterans Access, 
Choice and Accountability Act of 2014 (the Act), an employee covered by 
this part may appeal a removal from the civil service or a transfer to a 
General Schedule position based upon performance or misconduct to the 
MSPB.
    (b) MSPB administrative judges have the authority to issue a 
decision in an appeal covered by this part. (38 U.S.C. 713(e)(1)).
    (c) The administrative judge's authority under this part to issue a 
decision terminates following the passage of 21 days after the appeal is 
initially filed. (38 U.S.C. 713(e)(3)).
    (d) An administrative judge's decision in an appeal filed under this 
part is not subject to any further appeal. (38 U.S.C. 713(e)(2)).
    (e) This part applies only to the Secretary's authority to remove or 
transfer an employee covered under 38 U.S.C. 713 and the Board's 
authority to review such decisions. This authority is in addition to the 
authority already provided the agency in 5 U.S.C. 3592 and the authority 
provided the Board under 5 U.S.C. 7541, et seq. to take an adverse 
action against an employee. (38 U.S.C. 713(f)).



Sec.  1210.2  Definitions.

    (a) The term employee covered by this part means an individual 
career appointee as that term is defined in 5 U.S.C. 3132(a)(4) or an 
individual who occupies an administrative or executive position and is 
appointed under 38 U.S.C. 7306(a) or 7401(1). (38 U.S.C. 713(a) and 
(g)).
    (b) The term administrative judge means a person experienced in 
hearing appeals and assigned by the Board to hold a hearing and decide 
an appeal arising under this part. (38 U.S.C. 713(e)(1)).
    (c) The term response file means all documents and evidence the 
Secretary of the Department of Veterans Affairs, or designee, used in 
making the decision to remove or transfer an employee covered by this 
part. It also may include any additional documents or evidence that the 
agency would present in support of the Secretary's determination in the 
event that an appeal is filed.
    (d) The term misconduct includes neglect of duty, malfeasance, or 
failure to accept a directed reassignment or to accompany a position in 
a transfer of function. (38 U.S.C. 713(g)(2)).
    (e) The term transfer means the transfer of an employee covered by 
this part to a General Schedule position. (38 U.S.C. 713(a)(1)(B)).

[79 FR 48943, Aug. 19, 2014, as amended at 79 FR 49423, Aug. 21, 2014]



Sec.  1210.3  Application of practices and procedures to appeals 
filed under this part.

    (a) The following provisions of part 1201 of this chapter are 
inapplicable to appeals filed under this part:
    (1) Section 1201.22 (inapplicable to appeals brought under this part 
pursuant to Public Law 113-146, section 707(b)(2));
    (2) Section 1201.27 (class appeals are not allowed as such appeals 
cannot be adjudicated within 21 days);
    (3) Section 1201.28 (case suspensions are not allowed because they 
are inconsistent with the requirement to adjudicate appeals under this 
part within 21 days);
    (4) Section 1201.29 (dismissals without prejudice are not allowed 
because those procedures are inconsistent with the requirement to 
adjudicate appeals under this part within 21 days);
    (5) Section 1201.56 (this regulation is not controlling; parties 
should refer to Sec.  1210.18);
    (6) Sections 1201.91 through 1201.93 (interlocutory appeals are not 
allowed because the Board lacks authority to review appeals filed under 
this part);
    (7) Sections 1201.114 through 1201.20 (petitions for review are not 
allowed because the decisions in appeals filed under this part are not 
subject to further appeal) (38 U.S.C. 713(e)(2));

[[Page 99]]

    (8) Sections 1201.121 through 1201.145 (procedures for other 
original jurisdiction cases are not relevant to appeals filed under this 
part);
    (9) Sections 1201.152, 1201.153(b), 1201.154, 1201.155, 1201.156, 
1201.157, and 1201.161 (these provisions are inapplicable to appeals 
filed under 38 U.S.C. 713).
    (b) Except as modified by this part, the remaining relevant 
provisions of part 1201 of this chapter are applicable to appeals filed 
under this part.



Sec.  1210.4  Waiver of MSPB regulations.

    The Board may waive any MSPB regulation in order to provide for the 
expedited review of an appeal covered by this part. Public Law 113-146, 
section 707(b)(3).



Sec.  1210.5  Determination of the Secretary effecting a removal or transfer; 
required notice of expedited procedures; initial disclosures.

    An agency notice of a removal or transfer pursuant to 38 U.S.C. 713 
must include the following:
    (a) A statement identifying the action taken based on the 
Secretary's determination, stating the factual reasons for the 
charge(s), and statement setting forth the basis for the Secretary's 
determination that the performance or misconduct warrants removal or 
transfer.
    (b) Notice regarding the Board's expedited procedures applicable to 
an appeal. Such notice shall include a copy of this part and access to 
the remainder of the Board's adjudicatory regulations.
    (c) A copy of the materials the Secretary relied upon to remove or 
transfer the appellant (normally referred to as the ``response file'').
    (d) The name and contact information of the agency's representative 
for any appeal filed with the MSPB under this part.
    (e) Notice that MSPB appeals must be filed with the appropriate 
Board regional or field office. See Sec.  1201.4(d) of this chapter.



Sec.  1210.6  Electronic filing procedures; expedited filing procedures.

    (a) Required use of MSPB e-filing system. All parties must 
electronically file all pleadings and documents listed in 5 CFR 
1201.14(b) by using the MSPB's e-filing system (e-Appeal Online). An 
attempt to file an appeal using any other method will result in 
rejection of the appeal and will not constitute compliance with the 7-
day filing deadline under the Act, except in the limited circumstances 
described in Sec.  1210.7(c).
    (b) Expedited filing and service requirements. All documents and 
pleadings not otherwise covered in paragraph (a) of this section must be 
filed in accordance with any expedited filing and service procedures 
ordered by the administrative judge.
    (c) The parties should frequently check the Repository on e-Appeal 
Online to ensure that they are aware of new pleadings, orders and 
submissions in a timely fashion. A party's failure to check for updates 
on e-Appeal Online may lead to a denial of a request to extend a 
deadline and/or the imposition of sanctions.



Sec.  1210.7  Filing an appeal and a response to an appeal.

    (a) Place for filing an appeal and a response. Appeals, and 
responses to those appeals, must be filed with the appropriate Board 
regional or field office. See Sec.  1201.4(d) of this chapter.
    (b) Time for filing an appeal and agency response. An appeal of an 
action taken pursuant to 38 U.S.C. 713 must be filed no later than 7 
days after the effective date of the removal or transfer being appealed. 
(38 U.S.C. 713(d)(2)(B)). An agency response must be filed within 3 days 
of the filing of the appeal.
    (c) Timeliness of appeals. If an appellant does not submit an appeal 
within 7 days of the effective date of the action it will be dismissed 
as untimely filed. This deadline cannot be extended for any reason. (38 
U.S.C. 713(d)(2)(B)). However, if an appellant establishes that he or 
she attempted to file an appeal using e-Appeal Online within the 7-day 
deadline and that the filing was unsuccessful due to a problem with e-
Appeal Online, the administrative judge may deem the filing to have been 
completed on the date it was attempted, provided the appellant took 
reasonable steps to immediately advise the MSPB of the failed attempt to 
file the appeal using e-Appeal Online. The

[[Page 100]]

21-day deadline for issuance of a decision will commence on the day such 
an appeal was deemed to have been filed.
    (d) Time limits for other appeals not brought under 38 U.S.C. 713. 
The time limit prescribed by paragraph (b) of this section for filing an 
appeal does not apply where a law or regulation establishes a different 
time limit or where there is no applicable time limit. No time limit 
applies to appeals under the Uniformed Services Employment and 
Reemployment Rights Act (Pub. L. 103-353), as amended; see part 1208 of 
this chapter for the statutory filing time limits applicable to appeals 
under the Veterans Employment Opportunities Act (Pub. L. 105-339); see 
part 1209 of this chapter for the statutory filing time limits 
applicable to whistleblower appeals and stay requests.



Sec.  1210.8  Stay requests.

    An administrative judge may not grant a stay request in any appeal 
covered by this part. (38 U.S.C. 713(e)(4)).



Sec.  1210.9  Disclosures of information required with initial appeal.

    An appellant must attach to his or her appeal a copy of the agency's 
decision notice and the response file that the agency is required to 
disclose to the appellant pursuant to Sec.  1210.5(c).



Sec.  1210.10  Representatives.

    Motions challenging the designation of a representative must be 
filed within 3 days of the submission of the designation of 
representative notice.



Sec.  1210.11  Initial status conference; scheduling the hearing.

    This regulation contains guidance for the parties concerning when 
initial status conferences will occur and the issues that will be 
addressed. In any appeal under this part the administrative judge 
retains complete discretion in deciding when to schedule the initial 
status conference and in selecting the issues to be addressed.
    (a) Scheduling the conference. The administrative judge will 
schedule the initial status conference. Generally, the parties should 
expect that the initial status conference will take place within a week 
after the appeal is filed.
    (b) Issues likely to be addressed at the initial status conference. 
The parties should be prepared to discuss the following issues at the 
initial status conference:
    (1) The hearing date and anticipated length of the hearing;
    (2) Settlement;
    (3) Discovery deadlines and disputes;
    (4) Admission or rejection of exhibits;
    (5) Witnesses to be called to testify at the hearing;
    (6) Motions; and,
    (7) Any other issues identified by, or that require the involvement 
of, the administrative judge.
    (c) Additional status conferences. The administrative judge may 
schedule additional status conferences as necessary to fully develop the 
case for hearing.



Sec.  1210.12  Discovery.

    Except as noted in paragraphs (a) through (d) of this section, 5 CFR 
1201.71 through 1201.75 apply to appeals filed under this part.
    (a) Initial disclosures. The parties must make the following initial 
disclosures prior to the initial status conference.
    (1) Agency. The agency must provide:
    (i) A copy of all documents in the possession, custody or control of 
the agency that the agency may use in support of its claims or defenses; 
and,
    (ii) The name and, if known, address, telephone number and email 
address for each individual likely to have discoverable information that 
the agency may use in support of its claims or defenses.
    (2) Appellant. The appellant must provide:
    (i) A copy of all documents in the possession, custody or control of 
the appellant that the appellant may use in support of his or her claims 
or defenses; and,
    (ii) The name and, if known, address, telephone number and email 
address for each individual likely to have discoverable information that 
the appellant may use in support of his or her claims or defenses.
    (b) Time limits. The time limits set forth in Sec.  1201.73 of this 
chapter shall not apply to an appeal under this part.

[[Page 101]]

The following time limits apply to appeals under this part:
    (1) Discovery requests must be served on the opposing party prior to 
the initial status conference.
    (2) Responses to discovery requests must be served on the opposing 
party no later than 3 days after the initial status conference.
    (3) Discovery motions, including motions to compel, must be filed no 
later than 5 days after the initial status conference.
    (c) Methods of discovery. Parties may use one or more of the 
following methods of discovery provided under the Federal Rules of Civil 
Procedure:
    (1) Written interrogatories;
    (2) Requests for production of documents or things for inspection or 
copying;
    (3) Requests for admissions.
    (d) Limits on discovery requests. Absent approval by the 
administrative judge, discovery is limited as follows:
    (1) Interrogatories may not exceed 10 in number, including all 
discrete subparts;
    (2) The parties may not take depositions; and
    (3) The parties may engage in only one round of discovery.
    (e) Administrative judge's discretion to alter discovery procedures. 
An administrative judge may alter discovery procedures in order to 
provide for the expedited review of an appeal filed under this part.



Sec.  1210.13  Deadlines for filing motions.

    (a) Motions. All non-discovery motions must be filed no later than 5 
days after the initial status conference.
    (b) Objections. Objections to motions must be filed no later than 2 
days after the motion is filed.
    (c) Administrative judge's discretion to alter deadlines. An 
administrative judge may exercise discretion to alter or waive these 
deadlines.



Sec.  1210.14  Sanctions for failure to meet deadlines.

    Section 1201.43 of this chapter, which allows administrative judges 
to impose sanctions on parties that do not comply with orders or do not 
file pleadings in a timely fashion, shall apply to any appeal covered by 
this part. Strict enforcement of deadlines will be required to meet the 
21-day deadline for issuance of a decision by the administrative judge.



Sec.  1210.15  Agency duty to assist in expedited review.

    (a) As required by 38 U.S.C. 713(e)(6), the agency is required to 
provide the administrative judge such information and assistance as may 
be necessary to ensure that an appeal covered by this part is completed 
in an expedited manner.
    (b) The agency must promptly notify the MSPB whenever it issues a 
Secretarial determination subject to appeal under this part. Such 
notification must include the location where the employee worked, the 
type of action taken, and the effective date of the action. Notification 
should be sent to [email protected].



Sec.  1210.16  Intervenors and amici curiae.

    Intervenors and amici curiae are permitted to participate in 
proceedings under this part as allowed in Sec.  1201.34 of this chapter. 
Motions to intervene and requests to participate as an amicus curiae 
must be filed at the earliest possible time, generally before the 
initial status conference. All intervenors and amici curiae must comply 
with the expedited procedures set forth in this part and all orders 
issued by the administrative judge. The deadlines applicable to the 
timely adjudication of cases under this part will not be extended to 
accommodate intervenors or amici curiae.



Sec.  1210.17  Hearings.

    (a) Right to a hearing. An appellant has a right to a hearing as set 
forth in 5 U.S.C. 7701(a).
    (b) General. Hearings may be held in-person, by video or by 
telephone at the discretion of the administrative judge.
    (c) Scheduling the hearing. The administrative judge will set the 
hearing date during the initial status conference. A hearing generally 
will be scheduled to occur no later than 18 days after the appeal is 
filed.
    (d) Length of hearings. Hearings generally will be limited to no 
more than 1 day. The administrative judge, at his

[[Page 102]]

or her discretion, may allow for a longer hearing.
    (e) Court reporters. The MSPB will contract for a court reporter to 
be present at hearings.



Sec.  1210.18  Burden of proof, standard of review, and penalty.

    (a) Agency. Under 5 U.S.C. 7701(c)(1), and subject to exceptions 
stated in paragraph (c) of this section, the agency (the Department of 
Veterans Affairs) bears the burden of proving that an appellant engaged 
in misconduct, as defined by 38 U.S.C. 713(g)(2), or poor performance, 
and the Secretary's determination as to such misconduct or poor 
performance shall be sustained only if the factual reasons for the 
charge(s) are supported by a preponderance of the evidence. Proof of 
misconduct or poor performance shall create a presumption that the 
Secretary's decision to remove or transfer the appellant was warranted. 
The appellant may rebut this presumption by establishing that the 
imposed penalty was unreasonable under the circumstances of the case. 
The following examples illustrate the application of this rule:

    Example A. The Secretary determines that the appellant intentionally 
submitted false data on the agency's provision of medical care and that 
the misconduct warrants transfer to a General Schedule position. The 
appellant files an appeal with the Board. Following a hearing, the 
administrative judge finds that the agency proved its charge by 
preponderant evidence. The appellant's transfer is presumed to be 
warranted, absent a showing that such a penalty was unreasonable under 
the circumstances of the case.
    Example B. The Secretary determines that the appellant's performance 
or misconduct warrants removal, but the notice of the decision and the 
agency's response file do not identify any factual reasons supporting 
the Secretary's determination. The appellant files an appeal with the 
Board. The administrative judge may not sustain the removal because the 
agency, in taking its action, provided no factual reasons in support of 
its charge(s).
    Example C. The Secretary determines that the appellant's performance 
or misconduct warrants removal. The appellant files an appeal with the 
Board. During the processing of the appeal, the appellant contends that 
the agency unduly delayed or refused to engage in discovery. If the 
agency has obstructed the appeal from being adjudicated in a timely 
fashion, the administrative judge may impose sanctions, up to and 
including the drawing of adverse inferences or reversing the removal 
action. Because the administrative judge finds that the agency has not 
unduly delayed or refused to engage in discovery, he declines to impose 
sanctions and affirms the removal.
    Example D. The Secretary decides to remove the appellant based on a 
charge that the appellant engaged in a minor infraction that occurred 
outside the workplace. The appellant files an appeal with the Board. 
Following a hearing, the administrative judge finds that the agency 
proved its charge and further finds that the appellant established that 
the penalty of removal was unreasonable under the circumstances of the 
case. The presumption that the Secretary's decision to remove was 
warranted is rebutted and the action is reversed.

    (b) Appellant. The appellant has the burden of proof, by a 
preponderance of the evidence, concerning:
    (1) Issues of jurisdiction;
    (2) The timeliness of the appeal; and
    (3) Affirmative defenses.
    (c) Affirmative defenses. Under 5 U.S.C. 7701(c)(2), the Secretary's 
determination may not be sustained, even where the agency met the 
evidentiary standard stated in paragraph (a) of this section, if the 
appellant shows that:
    (1) The agency, in rendering its determination, committed harmful 
error in the application of its procedures;
    (2) The decision was based on any prohibited personnel practice 
described in 5 U.S.C. 2302(b); or
    (3) The determination is not otherwise in accordance with law.
    (d) Penalty review. As set forth in paragraph (a) of this section, 
proof of the agency's charge(s) by preponderant evidence creates a 
presumption that the Secretary's decision to remove or transfer the 
appellant was warranted. An appellant may rebut this presumption by 
establishing that the imposed penalty was unreasonable under the 
circumstances of the case, in which case the action is reversed. 
However, the administrative judge may not mitigate the Secretary's 
decision to remove or transfer the appellant.

[79 FR 48943, Aug. 19, 2014, as amended at 79 FR 49423, Aug. 21, 2014]



Sec.  1210.19  Bench decisions.

    (a) General. The administrative judge may issue a bench decision at 
the close

[[Page 103]]

of the hearing. A bench decision is effective when issued.
    (b) Transcription of bench decision. A transcribed copy of the 
decision will be prepared by the court reporter under the administrative 
judge's supervision to memorialize the oral decision. The official 
issuance of a bench decision is the date the administrative judge 
announces the decision and not the date the administrative judge signs 
the transcription.



Sec.  1210.20  Effective date of a decision issued by an administrative judge; 
continuing jurisdiction over certain ancillary matters.

    (a) A decision by an administrative judge under this part will be 
effective upon issuance.
    (b) Pursuant to 38 U.S.C. 713(e)(2), a decision by the 
administrative judge is not subject to further appeal.
    (c) A decision by the administrative judge is nonprecedential. Such 
a decision may be cited as persuasive authority only in an appeal filed 
pursuant to 38 U.S.C. 713(e)(2). Such a decision may not be cited in any 
appeal not filed pursuant to 38 U.S.C. 713(e)(2).
    (d) Following issuance of a decision by the administrative judge 
under this part, the MSPB retains jurisdiction over the appeal covered 
by this part for purposes of the following ancillary matters:
    (1) Enforcement of decisions and orders. The procedures set forth in 
subpart F of 5 CFR part 1201 are applicable to petitions for enforcement 
filed after the administrative judge issues a decision in an appeal 
filed under this part; and,
    (2) Attorney fees, witness fees, litigation expenses, and damages. 
The procedures set forth in subpart H of 5 CFR part 1201 (attorney fees, 
costs, expert witness fees, and litigation expenses, where applicable, 
and damages) are applicable to requests for fees and damages filed after 
the administrative judge issues a decision in an appeal filed under this 
part. (5 U.S.C. 7701(g)).

                       PARTS 1211	1214 [RESERVED]



PART 1215_DEBT MANAGEMENT--Table of Contents



                         Subpart A_Salary Offset

Sec.
1215.1 Purpose and scope.
1215.2 Definitions.
1215.3 Applicability.
1215.4 Notice requirements.
1215.5 Hearing.
1215.6 Written decision.
1215.7 Coordinating offset with another Federal agency.
1215.8 Procedures for salary offset.
1215.9 Refunds.
1215.10 Statute of limitations.
1215.11 Nonwaiver of rights.
1215.12 Interest, penalties, and administrative costs.

                       Subpart B_Claims Collection

1215.21 Purpose and scope.
1215.22 Definitions.
1215.23 Other remedies.
1215.24 Claims involving criminal activity or misconduct.
1215.25 Collection.
1215.26 Notices to debtor.
1215.27 Interest, penalties, and administrative costs.
1215.28 Administrative offset.
1215.29 Use of credit reporting agencies.
1215.30 Collection services.
1215.31 Referral to the Department of Justice or the General Accounting 
          Office.
1215.32 Compromise, suspension and termination.
1215.33 Omissions not a defense.

    Source: 54 FR 50603, Dec. 8, 1989, unless otherwise noted. 
Redesignated at 72 FR 56885, Oct. 5, 2007.



                         Subpart A_Salary Offset

    Authority: 5 U.S.C. 5514, Executive Order 11809 (redesignated 
Executive Order 12107), and 5 CFR 550 subpart K.



Sec.  1215.1  Purpose and scope.

    (a) This regulation provides procedures for the collection by 
administrative offset of a Federal employee's salary without his/her 
consent to satisfy certain debts owed to the Federal Government. These 
regulations apply to all Federal employees who owe debts to the MSPB and 
to current employees of the MSPB who owe debts to other Federal 
agencies. This regulation does not apply when the employee consents to 
recovery from his/her current pay account.

[[Page 104]]

    (b) This regulation does not apply to debts or claims arising under:
    (1) The Internal Revenue Code of 1954, as amended, 26 U.S.C. 1 et 
seq.;
    (2) The Social Security Act, 42 U.S.C. 301 et seq.;
    (3) The tariff laws of the United States; or
    (4) Any case where a collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute.
    (c) This regulation does not apply to any adjustment to pay arising 
out of an employee's selection of coverage or a change in coverage under 
a Federal benefits program requiring periodic deductions from pay if the 
amount to be recovered was accumulated over four pay periods or less.
    (d) This regulation does not preclude the compromise, suspension, or 
termination of collection action where appropriate under the standards 
implementing the Federal Claims Collection Act, 31 U.S.C. 3711 et seq. 4 
CFR parts 101 through 105; 5 CFR part 1215.
    (e) This regulation does not preclude an employee from requesting 
waiver of an overpayment under 5 U.S.C. 5584, 10 U.S.C. 2774 or 32 
U.S.C. 716 or in any way questioning the amount of validity of the debt 
by submitting a subsequent claim to the General Accounting Office. This 
regulation does not preclude an employee from requesting a waiver 
pursuant to other statutory provisions applicable to the particular debt 
being collected.
    (f) Matters not addressed in these regulations should be reviewed in 
accordance with the Federal Claims Collection Standards at 4 CFR 101.1 
et seq.



Sec.  1215.2  Definitions.

    (a) Agency. An executive agency as is defined at 5 U.S.C. 105 
including the U.S. Postal Service, the U.S. Postal Commission, a 
military department as defined at 5 U.S.C. 102, an agency or court in 
the judicial branch, an agency of the legislative branch including the 
U.S. Senate and House of Representatives and other independent 
establishments that are entities of the Federal government.
    (b) Chairman. The Chairman of the MSPB or the Chairman's designee.
    (c) Creditor agency. The agency to which the debt is owed.
    (d) Debt. An amount owed to the United States from sources which 
include loans insured or guaranteed by the United States and all other 
amounts due the United States from fees, leases, rents, royalties, 
services, sales or real or personal property, overpayments, penalties, 
damages, interests, fines, forfeitures (except those arising under the 
Uniform Code of Military Justice), and all other similar sources.
    (e) Disposable pay. The amount that remains from an employee's 
Federal pay after required deductions for social security, Federal, 
state or local income tax, health insurance premiums, retirement 
contributions, life insurance premiums, Federal employment taxes, and 
any other deductions that are required to be withheld by law.
    (f) Hearing official. An individual responsible for conducting any 
hearing with respect to the existence or amount of a debt claimed, and 
who renders a decision on the basis of such hearing. A hearing official 
may not be under the supervision or control of the Chairman of the MSPB.
    (g) Paying Agency. The agency that employs the individual who owes 
the debt and authorizes the payment of his/her current pay.
    (h) Salary offset. An administrative offset to collect a debt 
pursuant to 5 U.S.C. 5514 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee 
without his/her consent.



Sec.  1215.3  Applicability.

    (a) These regulations are to be followed when:
    (1) The MSPB is owed a debt by an individual currently employed by 
another Federal agency;
    (2) The MSPB is owed a debt by an individual who is a current 
employee of the MSPB; or
    (3) The MSPB employs an individual who owes a debt to another 
Federal agency.



Sec.  1215.4  Notice requirements.

    (a) Deductions shall not be made unless the employee is provided 
with written notice signed by the Chairman

[[Page 105]]

of the debt at least 30 days before salary offset commences.
    (b) The written notice shall contain:
    (1) A statement that the debt is owed and an explanation of its 
nature, and amount;
    (2) The agency's intention to collect the debt by deducting from the 
employee's current disposable pay account;
    (3) The amount, frequency proposed beginning date, and duration of 
the intended deduction(s);
    (4) An explanation of interest, penalties, and administrative 
charges, including a statement that such charges will be assessed unless 
excused in accordance with the Federal Claims Collections Standards at 4 
CFR 101.1 et seq.;
    (5) The employee's right to inspect, request, or receive a copy of 
government records relating to the debt;
    (6) The opportunity to establish a written schedule for the 
voluntary repayment of the debt;
    (7) The right to a hearing conducted by an impartial hearing 
official;
    (8) The methods and time period for petitioning for hearings;
    (9) A statement that the timely filing of a petition for a hearing 
will stay the commencement of collection proceedings;
    (10) A statement that a final decision on the hearing will be issued 
not later than 60 days after the filing of the petition requesting the 
hearing unless the employee requests and the hearing official grants a 
delay in the proceedings;
    (11) A statement that knowingly false or frivolous statements, 
representations, or evidence may subject the employee to appropriate 
disciplinary procedures;
    (12) A statement of other rights and remedies available to the 
employee under statutes or regulations governing the program for which 
the collection is being made; and
    (13) Unless there are contractual or statutory provisions to the 
contrary, a statement that amounts paid on or deducted for the debt 
which are later waived or found not owed to the United States will be 
promptly refunded to the employee.



Sec.  1215.5  Hearing.

    (a) Request for hearing. (1) An employee must file a petition for a 
hearing in accordance with the instructions outlined in the agency's 
notice to offset.
    (2) A hearing may be requested by filing a written petition 
addressed to the Chairman of the MSPB stating why the employee disputes 
the existence or amount of the debt. The petition for a hearing must be 
received by the Chairman no later than fifteen (15) calendar days after 
the date of the notice to offset unless the employee can show good cause 
for failing to meet the deadline date.
    (b) Hearing procedures. (1) The hearing will be presided over by an 
impartial hearing official.
    (2) The hearing shall conform to procedures contained in the Federal 
Claims Collection Standards 4 CFR 102.3(c). The burden shall be on the 
employee to demonstrate that the existence or the amount of the debt is 
in error.



Sec.  1215.6  Written decision.

    (a) The hearing official shall issue a written opinion no later than 
60 days after the hearing.
    (b) The written opinion will include: A statement of the facts 
presented to demonstrate the nature and origin of the alleged debt; the 
hearing official's analysis, findings and conclusions; the amount and 
validity of the debt, and the repayment schedule.



Sec.  1215.7  Coordinating offset with another Federal agency.

    (a) The MSPB as the creditor agency. (1) When the Chairman 
determines that an employee of a Federal agency owes a delinquent debt 
to the MSPB, the Chairman shall as appropriate:
    (i) Arrange for a hearing upon the proper petitioning by the 
employee;
    (ii) Certify in writing that the employee owes the debt, the amount 
and basis of the debt, the date on which payment is due, the date the 
Government's right to collect the debt accrued, and that MSPB 
regulations for salary offset have been approved by the Office of 
Personnel Management;
    (iii) Advise the paying agency of the amount or percentage of 
disposable pay

[[Page 106]]

to be collected in each installment, if collection is to be made in 
installments;
    (iv) Advise the paying agency of the actions taken under 5 U.S.C. 
5514(b) and provide the dates on which action was taken unless the 
employee has consented to salary offset in writing or signed a statement 
acknowledging receipt of procedures required by law. The written consent 
or acknowledgment must be sent to the paying agency;
    (v) If the employee is in the process of separating, MSPB must 
submit its debt claim to the paying agency as provided in this part. The 
paying agency must certify any amounts already collected, notify the 
employee, and send a copy of the certification and notice of the 
employee's separation to the creditor agency. If the paying agency is 
aware that the employee is entitled to Civil Service Retirement and 
Disability Fund or similar payments, it must certify to the agency 
responsible for making such payments the amount of the debt and that the 
provisions of this part have been followed; and
    (vi) If the employee has already separated and all payments due from 
the paying agency have been paid, the Chairman may request unless 
otherwise prohibited, that money payable to the employee from the Civil 
Service Retirement and Disability Fund or other similar funds be 
collected by administrative offset.
    (b) MSPB as the paying agency. (1) Upon receipt of a properly 
certified debt claim from another agency, deductions will be scheduled 
to begin at the next established pay interval. The employee must receive 
written notice that the MSPB has received a certified debt claim from 
the creditor agency, the amount of the debt, the date salary offset will 
begin, and the amount of the deduction(s). The MSPB shall not review the 
merits of the creditor agency's determination of the validity or the 
amount of the certified claim.
    (2) If the employee transfers to another agency after the creditor 
agency has submitted its debt claim to the MSPB and before the debt is 
collected completely, the MSPB must certify the total amount collected. 
One copy of the certification must be furnished to the employee. A copy 
must be furnished the creditor agency with notice of the employee's 
transfer.



Sec.  1215.8  Procedures for salary offset.

    (a) Deductions to liquidate an employee's debt will be by the method 
and in the amount stated in the Chairman's notice of intention to offset 
as provided in Sec.  1215.4. Debts will be collected in one lump sum 
where possible. If the employee is financially unable to pay in one lump 
sum, collection must be made in installments.
    (b) Debts will be collected by deduction at officially established 
pay intervals from an employee's current pay account unless alternative 
arrangements for repayment are made.
    (c) Installment deductions will be made over a period not greater 
than the anticipated period of employment. The size of installment 
deductions must bear a reasonable relationship to the size of the debt 
and the employee's ability to pay. The deduction for the pay intervals 
for any period must not exceed 15 percent of disposable pay unless the 
employee has agreed in writing to a deduction of a greater amount.
    (d) Unliquidated debts may be offset against any financial payment 
due to a separated employee including but not limited to final salary 
payment or leave in accordance with 31 U.S.C. 3716.



Sec.  1215.9  Refunds.

    (a) The MSPB will refund promptly any amounts deducted to satisfy 
debts owed to the MSPB when the debt is waived, found not owed to the 
MSPB, or when directed by an administrative or judicial order.
    (b) The creditor agency will promptly return any amounts deducted by 
MSPB to satisfy debts owed to the creditor agency when the debt is 
waived, found not owed, or when directed by an administrative or 
judicial order.
    (c) Unless required by law, refunds under this subsection shall not 
bear interest.



Sec.  1215.10  Statute of limitations.

    If a debt has been outstanding for more than 10 years after the 
agency's right to collect the debt first accrued, the agency may not 
collect by salary

[[Page 107]]

offset unless facts material to the Government's right to collect were 
not known and could not reasonably have been known by the official or 
officials who were charged with the responsibility for discovery and 
collection of such debts.



Sec.  1215.11  Nonwaiver of rights.

    An employee's involuntary payment of all or any part of a debt 
collected under these regulations will not be construed as a waiver of 
any rights that employee may have under 5 U.S.C. 5514 or any other 
provision of contract law unless there are statutes or contract(s) to 
the contrary.



Sec.  1215.12  Interest, penalties, and administrative costs.

    Charges may be assessed for interest, penalties, and administrative 
costs in accordance with the Federal Claims Collection Standards, 4 CFR 
102.13. Dated: July 24, 1987.



                       Subpart B_Claims Collection

    Authority: The authority for this part is the Federal Claims 
Collection Act of 1966, as amended, 31 U.S.C. 3711 and 3716-3719; the 
Federal Claims Collection Standards at 4 CFR parts 101-105, as amended 
by 49 FR 8889, 5 U.S.C. 552a, and Office of Management and Budget 
Circular A-129.



Sec.  1215.21  Purpose and scope.

    This part prescribes standards and procedures for officers and 
employees of the MSPB who are responsible for the collection and 
disposition of debts owed to the United States. The activities covered 
include: Collecting claims in any amount; compromising claims, or 
suspending or terminating the collection of claims that do not exceed 
$20,000 exclusive of interest and charges; and referring debts that 
cannot be disposed of by the MSPB to the Department of Justice or to the 
General Accounting Office for further administrative action or 
litigation.



Sec.  1215.22  Definitions.

    (a) Claim or debt. An amount or property owed to the United States 
which includes, but is not limited to: Overpayments to program 
beneficiaries; overpayments to contractors and grantees, including 
overpayments arising from audit disallowances; excessive cash advances 
to grantees and contractors; and civil penalties and assessments. A debt 
is overdue or delinquent if it is not paid by the due date specified in 
the initial notice of the debt (see Sec.  1215.26) or if the debtor 
fails to satisfy his or her obligation under a repayment agreement.
    (b) Debtor. An individual, organization, group, association, 
partnership, or corporation indebted to the United States, or the person 
or entity with legal responsibility for assuming the debtor's 
obligation.
    (c) MSPB. The Merit Systems Protection Board.
    (d) Administrative offset. Satisfying a debt by withholding money 
payable by the United States to or held by the United States for a 
debtor.



Sec.  1215.23  Other remedies.

    The remedies and sanctions available to the MSPB under this part are 
not intended to be exclusive. The Chairman of the MSPB or his designee 
may impose other appropriate sanctions upon a debtor for prolonged or 
repeated failure to pay a debt. For example, the Chairman or his 
designee may place the debtor's name on a list of debarred, suspended, 
or ineligible contractors. In such cases the debtor will be advised of 
the MSPB's action.



Sec.  1215.24  Claims involving criminal activity or misconduct.

    (a) A debtor whose indebtedness involves criminal activity such as 
fraud, embezzlement, theft, or misuse of government funds or property is 
subject to punishment by fine or imprisonment as well as to a civil 
claim by the United States for compensation for the misappropriated 
funds. The MSPB will refer these cases to the appropriate law 
enforcement agency for prosecution.
    (b) Debts involving fraud, false claims, or misrepresentation shall 
not be compromised, terminated, suspended, or otherwise disposed of 
under this rule. Only the Department of Justice is authorized to 
compromise, terminate, suspend, or otherwise dispose of such debts.

[[Page 108]]



Sec.  1215.25  Collection.

    (a) The MSPB will take aggressive action to collect debts and reduce 
delinquencies. Collection efforts shall include sending to the debtor's 
last known address a total of three progressively stronger written 
demands for payment at not more than 30 day intervals. When necessary to 
protect the Government's interest, written demand may be preceded by 
other appropriate action, including immediate referral for litigation. 
Other contact with the debtor or his or her representative or guarantor 
by telephone, in person and/or in writing may be appropriate to demand 
prompt payment, to discuss the debtor's position regarding the 
existence, amount and repayment of the debt, and to inform the debtor of 
his or her rights and effect of nonpayment or delayed payment. A debtor 
who disputes a debt must promptly provide available supporting evidence.
    (b) If a debtor is involved in insolvency proceedings, the debt will 
be referred to the appropriate United States Attorney to file a claim. 
The United States may have a priority over other creditors under 31 
U.S.C. 3713.



Sec.  1215.26  Notices to debtor.

    The first written demand for payment must inform the debtor of the 
following:
    (a) The amount and nature of the debt;
    (b) The date payment is due, which will generally be 30 days from 
the date the notice was mailed;
    (c) The assessment of interest under Sec.  1215.27 from the date the 
notice was mailed if payment is not received within the 30 days;
    (d) The right to dispute the debt;
    (e) The office, address and telephone number that the debtor should 
contact to discuss repayment and reconsideration of the debt; and
    (f) The sanctions available to the MSPB to collect a delinquent debt 
including, but not limited to, referral of the debt to a credit 
reporting agency, a private collection bureau, or the Department of 
Justice for litigation.



Sec.  1215.27  Interest, penalties, and administrative costs.

    (a) Interest will accrue on all debts from the date when the first 
notice of the debt and the interest requirement is mailed to the last 
known address or hand-delivered to the debtor if the debt is not paid 
within 30 days from the date the first notice was mailed. The MSPB will 
charge an annual rate of interest that is equal to the average 
investment rate for the Treasury tax and loan accounts on September 30 
of each year, rounded to the nearest whole per centum. This rate, which 
represents the current value of funds to the United States Treasury, may 
be revised quarterly by the Secretary of the Treasury and is published 
by the Secretary of the Treasury annually or quarterly in the Federal 
Register and the Treasury Financial Manual Bulletins.
    (b) The rate of interest initially assessed will remain fixed for 
the duration of the indebtedness, except that if a debtor defaults on a 
repayment agreement interest may be set at the Treasury rate in effect 
on the date a new agreement is executed.
    (c) The MSPB shall charge debtors for administrative costs incurred 
in handling overdue debts.
    (d) Interest will not be charged on administrative costs.
    (e) The MSPB shall assess a penalty charge, not to exceed 6 percent 
per year on debts which have been delinquent for more than 90 days. This 
change shall accrue from the date that the debt became delinquent.
    (f) The Chairman or his designee may waive in whole or in part the 
collection of interest and administrative and penalty charges if 
determined that collection would be against equity or not in the best 
interests of the United States. The MSPB shall waive the collection of 
interest on the debt or any part of the debt which is paid within 30 
days after the date on which interest began to accrue.



Sec.  1215.28  Administrative offset.

    (a) The MSPB may collect debts owed by administrative offset if:
    (1) The debt is certain in amount;

[[Page 109]]

    (2) Efforts to obtain direct payment have been, or would most likely 
be unsuccessful, or the MSPB and the debtor agree to the offset;
    (3) Offset is cost effective or has significant deterrent value; and
    (4) Offset is best suited to further and protect the Government's 
interest.
    (b) The MSPB may offset a debt owed to another Federal agency from 
amounts due or payable by the MSPB to the debtor or request another 
Federal agency to offset a debt owed to the MSPB;
    (c) Prior to initiating administrative offset, the MSPB will send 
the debtor written notice of the following:
    (1) The nature and amount of the debt and the agency's intention to 
collect the debt by offset 30 days from the date the notice was mailed 
if neither payment nor a satisfactory response is received by that date;
    (2) The debtor's right to an opportunity to submit a good faith 
alternative repayment schedule to inspect and copy agency records 
pertaining to the debt, to request a review of the determination of 
indebtedness; and to enter into a written agreement to repay the debt; 
and
    (3) The applicable interest.
    (d) The MSPB may effect an administrative offset against a payment 
to be made to a debtor prior to the completion of the procedures 
required by paragraph (c) of this section if:
    (1) Failure of offset would substantially prejudice the Government's 
ability to collect the debt; and
    (2) The time before the payment is to be made does not reasonably 
permit completion of those procedures.



Sec.  1215.29  Use of credit reporting agencies.

    (a) The MSPB may report delinquent accounts to credit reporting 
agencies consistent with the notice requirements contained in the Sec.  
1215.26. Individual debtors must be given at least 60 days written 
notice that the debt is overdue and will be reported to a credit 
reporting agency.
    (b) Debts may be reported to consumer or commercial reporting 
agencies. Consumer reporting agencies are defined in 31 U.S.C. 
3701(a)(3) pursuant to 5 U.S.C. 552a(b)(12) and 31 U.S.C. 3711(f). The 
MSPB may disclose only an individual's name, address, Social Security 
number, and the nature, amount, status and history of the debt and the 
program under which the claim arose.



Sec.  1215.30  Collection services.

    (a) The MSPB may contract for collection services to recover 
outstanding debts. The MSPB may refer delinquent debts to private 
collection agencies listed on the schedule compiled by the General 
Services Administration. In such contracts, the MSPB will retain the 
authority to resolve disputes, compromise claims, terminate or suspend 
collection, and refer the matter to the Department of Justice or the 
General Accounting Office.
    (b) The contractor shall be subject to the disclosure provisions of 
the Privacy Act of 1974, as amended (5 U.S.C. 552a(m)), and to 
applicable Federal and state laws and regulations pertaining to debt 
collection practices, including the Fair Debt Collection Practices Act, 
15 U.S.C. 1692. The contractor shall be strictly accountable for all 
amounts collected.
    (c) The contractor shall be required to provide to the MSPB any data 
contained in its files relating to the debt account upon agency request 
or upon returning an account to the MSPB for referral to the Department 
of Justice for litigation.



Sec.  1215.31  Referral to the Department of Justice 
or the General Accounting Office.

    Debts over $600 but less than $100,000 which the MSPB determines can 
neither be collected nor otherwise disposed of will be referred for 
litigation to the United States Attorney in whose judicial district the 
debtor is located. Claims for amounts exceeding $100,000 shall be 
referred for litigation to the Commercial Litigation Branch, Civil 
Division of the Department of Justice.



Sec.  1215.32  Compromise, suspension and termination.

    (a) The Chairman of the MSPB or his designee may compromise, suspend 
or terminate the collection of debts where the outstanding principal is 
not greater than $20,000. MSPB procedures for

[[Page 110]]

writing off outstanding accounts are available to the public.
    (b) The Chairman of the MSPB may compromise, suspend or terminate 
collection of debts where the outstanding principal is greater than 
$20,000 only with the approval of, or by referral to the United States 
Attorney or the Department of Justice.
    (c) The Chairman of the MSPB will refer to the General Accounting 
Office (GAO) debts arising from GAO audit exceptions.



Sec.  1215.33  Omissions not a defense.

    Failure to comply with any provisions of this rule may not serve as 
a defense to any debtor.



PART 1216_TESTIMONY BY MSPB EMPLOYEES RELATING TO OFFICIAL INFORMATION 
AND PRODUCTION OF OFFICIAL RECORDS IN LEGAL PROCEEDINGS--Table of Contents



                      Subpart A_General Provisions

Sec.
1216.101 Scope and purpose.
1216.102 Applicability.
1216.103 Definitions.

 Subpart B_Demands or Requests for Testimony and Production of Documents

1216.201 General prohibition.
1216.202 Factors the MSPB will consider.
1216.203 Filing requirements for litigants seeking documents or 
          testimony.
1216.204 Service of requests or demands.
1216.205 Processing requests or demands.
1216.206 Final determination.
1216.207 Restrictions that apply to testimony.
1216.208 Restrictions that apply to released records.
1216.209 Procedure when a decision is not made prior to the time a 
          response is required.
1216.210 Procedure in the event of an adverse ruling.

                       Subpart C_Schedule of Fees

1216.301 Fees.

                           Subpart D_Penalties

1216.401 Penalties.

    Authority: 5 U.S.C. 1204(h); 31 U.S.C. 9701.

    Source: 71 FR 17967, Apr. 10, 2006, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  1216.101  Scope and purpose.

    (a) This part establishes policy, assigns responsibilities and 
prescribes procedures with respect to:
    (1) The production or disclosure of official information or records 
by MSPB employees, advisors, and consultants; and
    (2) The testimony of current and former MSPB employees, advisors, 
and consultants relating to official information, official duties, or 
the MSPB's record, in connection with federal or state litigation in 
which the MSPB is not a party.
    (b) The MSPB intends this part to:
    (1) Conserve the time of MSPB employees for conducting official 
business;
    (2) Minimize the involvement of MSPB employees in issues unrelated 
to MSPB's mission;
    (3) Maintain the impartiality of MSPB employees in disputes between 
private litigants; and
    (4) Protect sensitive, confidential information and the deliberative 
processes of the MSPB.
    (c) In providing for these requirements, the MSPB does not waive the 
sovereign immunity of the United States.
    (d) This part provides guidance for the internal operations of MSPB. 
It does not create any right or benefit, substantive or procedural, that 
a party may rely upon in any legal proceeding against the United States.



Sec.  1216.102  Applicability.

    This part applies to demands and requests to current and former 
employees, advisors, and consultants for factual or expert testimony 
relating to official information or official duties or for production of 
official records or information, in legal proceedings in which the MSPB 
is not a named party. This part does not apply to:
    (a) Demands upon or requests for an MSPB employee to testify as to 
facts or events that are unrelated to his or her official duties or that 
are unrelated to the functions of the MSPB;
    (b) Demands upon or requests for a former MSPB employee to testify 
as to matters in which the former employee

[[Page 111]]

was not directly or materially involved while at the MSPB;
    (c) Requests for the release of records under the Freedom of 
Information Act, 5 U.S.C. 552, or the Privacy Act, 5 U.S.C. 552a; or
    (d) Congressional demands and requests for testimony, records or 
information.



Sec.  1216.103  Definitions.

    The following definitions apply to this part.
    (a) Demand means an order, subpoena, or other command of a court or 
other competent authority for the production, disclosure, or release of 
records or for the appearance and testimony of an MSPB employee in a 
legal proceeding.
    (b) General Counsel means the General Counsel of the MSPB or a 
person to whom the General Counsel has delegated authority under this 
part.
    (c) Legal proceeding means any matter before a court of law, 
administrative board or tribunal, commission, administrative law judge, 
hearing officer or other body that conducts a legal or administrative 
proceeding. Legal proceeding includes all phases of litigation.
    (d) MSPB means the Merit Systems Protection Board.
    (e) MSPB employee or employee means:
    (1)(i) Any current or former employee of the MSPB;
    (ii) Any other individual hired through contractual agreement by or 
on behalf of the MSPB or who has performed or is performing services 
under such an agreement for the MSPB; and
    (iii) Any individual who served or is serving in any consulting or 
advisory capacity to the MSPB, whether formal or informal.
    (2) This definition does not include persons who are no longer 
employed by the MSPB and who agree to testify about general matters, 
matters available to the public, or matters with which they had no 
specific involvement or responsibility during their employment with the 
MSPB.
    (f) Records or official records and information all information in 
the custody and control of the MSPB, relating to information in the 
custody and control of the MSPB, or acquired by an MSPB employee in the 
performance of his or her official duties or because of his or her 
official status, while the individual was employee by or on behalf of 
the MSPB.
    (g) Request means any informal request, by whatever method, for the 
production of records and information or for testimony which has not 
been ordered by a court of other competent authority.
    (h) Testimony means any written or oral statements, including 
depositions, answers to interrogatories, affidavits, declarations, 
interviews, and statements made by an individual in connection with a 
legal proceeding.



 Subpart B_Demands or Requests for Testimony and Production of Documents



Sec.  1216.201  General prohibition.

    No employee may produce official records and information or provide 
any testimony relating to official information in response to a demand 
or request without the prior, written approval of the General Counsel.



Sec.  1216.202  Factors the MSPB will consider.

    The General Counsel, in his or her sole discretion, may grant an 
employee permission to testify on matters relating to official 
information, or produce official records and information, in response to 
a demand or request. Among the relevant factors that the General Counsel 
may consider in making this decision are whether:
    (a) The purposes of this part are met;
    (b) Allowing such testimony or production of records would be 
necessary to prevent a miscarriage of justice;
    (c) Allowing such testimony or production of records would assist or 
hinder the MSPB in performing its statutory duties;
    (d) Allowing such testimony or production of records would be in the 
best interest of the MSPB or the United States;
    (e) The records or testimony can be obtained from other sources;
    (f) The demand or request is unduly burdensome or otherwise 
inappropriate under the applicable rules of discovery or the rule of 
procedure governing the

[[Page 112]]

case or mater in which the demand or request arose;
    (g) Disclosure would violate a statute, Executive Order or 
regulation;
    (h) Disclosure would reveal confidential, sensitive, or privileged 
information, trade secrets or similar, confidential or financial 
information, otherwise protected information, or information which would 
otherwise be inappropriate for release;
    (i) Disclosure would impede or interfere with an ongoing law 
enforcement investigation or proceeding, or compromise constitutional 
rights or national security interests;
    (j) Disclosure would result in the MSPB appearing to favor one 
litigant over another;
    (k) Whether the request was served before the demand;
    (l) A substantial Government interest is implicated;
    (m) The demand or request is within the authority of the party 
making it; and
    (n) The demand or request is sufficiently specific to be answered.



Sec.  1216.203  Filing requirements for litigants seeking documents 
or testimony.

    A litigant must comply with the following requirements when filing a 
request for official records and information or testimony under this 
part. A request should be filed before a demand.
    (a) The request must be in writing and must be submitted to the 
Clerk of the Board who will immediately forward the request to the 
General Counsel.
    (b) The written request must contain the following information:
    (1) The caption of the legal proceeding, docket number, and name and 
address of the court or other authority involved;
    (2) A copy of the complaint or equivalent document setting forth the 
assertions in the case and any other pleading or document necessary to 
show relevance;
    (3) A list of categories of records sought, a detailed description 
of how the information sought is relevant to the issues in the legal 
proceeding, and a specific description of the substance of the testimony 
or records sought;
    (4) A statement as to how the need for the information outweighs any 
need to maintain the confidentiality of the information and outweighs 
the burden on the MSPB to produce the records or provide testimony;
    (5) A statement indicating that the information sought is not 
available from another source, from other persons or entities, or from 
the testimony of someone other than an MSPB employee, such as a retained 
expert;
    (6) If testimony is requested, the intended use of the testimony, 
and a showing that no document could be provided and used in lieu of 
testimony;
    (7) A description of all prior decisions, orders, or pending motions 
in the case that bear upon the relevance of the requested records or 
testimony;
    (8) The name, address, and telephone number of counsel to each party 
in the case; and
    (9) An estimate of the amount of time that the requester and other 
parties will require for each MSPB employee for time spent by the 
employee to prepare for testimony, in travel, and for attendance in the 
legal proceeding.
    (c) The MSPB reserves the right to require additional information to 
complete the request where appropriate.
    (d) The request should be submitted at least 30 days before the date 
that records or testimony is required. Requests submitted in less than 
30 days before records or testimony is required must be accompanied by a 
written explanation stating the reasons for the late request and the 
reasons for expedited processing.
    (e) Failure to cooperate in good faith to enable the General Counsel 
to make an informed decision may serve as the basis for a determination 
not to comply with the request.
    (f) The request should state that the requester will provide a copy 
of the MSPB employee's statement free of charge and that the requester 
will permit the MSPB to have a representative present during the 
employee's testimony.



Sec.  1216.204  Service of requests or demands.

    Requests or demands for official records or information or testimony 
under this subpart must be served on

[[Page 113]]

the Clerk of the Board, U.S. Merit Systems Protection Board, 1615 M 
Street, NW., Washington, DC 20419-0002 by mail, fax, or e-mail and 
clearly marked ``Part 1216 Request for Testimony or Official Records in 
Legal Proceedings.'' The request or demand will be immediately forwarded 
to the General Counsel for processing.



Sec.  1216.205  Processing requests or demands.

    (a) After receiving service of a request or demand for testimony, 
the General Counsel will review the request and, in accordance with the 
provisions of this subpart, determine whether, or under what conditions, 
to authorize the employee to testify on matters relating to official 
information and/or produce official records and information.
    (b) Absent exigent circumstances, the MSPB will issue a 
determination within 30 days from the date the request is received.
    (c) The General Counsel may grant a waiver of any procedure 
described by this subpart where a waiver is considered necessary to 
promote a significant interest of the MSPB or the United States, or for 
other good cause.
    (d) Certification (authentication) of copies of records. The MSPB 
may certify that records are true copies in order to facilitate their 
use as evidence. If a requester seeks certification, the requester must 
request certified copies from the MSPB at least 30 days before the date 
they will be needed. The request should be sent to the Clerk of the 
Board.



Sec.  1216.206  Final determination.

    The General Counsel makes the final determination on demands to 
requests to employees for production of official records and information 
or testimony in litigation in which the MSPB is not a party. All final 
determinations are within the sole discretion of the General Counsel. 
The General Counsel will notify the requester and, when appropriate, the 
court of other competent authority of the final determination, the 
reasons for the grant or denial of the request, and any conditions that 
the General Counsel may impose on the release of records or information, 
or on the testimony of an MSPB employee. The General Counsel's decision 
exhausts administrative remedies for discovery of the information.



Sec.  1216.207  Restrictions that apply to testimony.

    (a) The General Counsel may impose conditions or restrictions on the 
testimony of MSPB employees including, for example:
    (1) Limiting the areas of testimony;
    (2) Requiring the requester and other parties to the legal 
proceeding to agree that the transcript of the testimony will be kept 
under seal;
    (3) Requiring that the transcript will be used or made available 
only in the particular legal proceeding for which testimony was 
requested. The General Counsel may also require a copy of the transcript 
of testimony at the requester's expense.
    (b) The MSPB may offer the employee's written declaration in lieu of 
testimony.
    (c) If authorized to testify pursuant to this part, an employee may 
testify as to facts within his or her personal knowledge, but, unless 
specifically authorized to do so by the General Counsel, the employee 
shall not;
    (1) Disclose confidential or privileged information; or
    (2) For a current MSPB employee, testify as an expert or opinion 
witness with regard to any matter arising out of the employee's official 
duties or the functions of the MSPB unless testimony is being given on 
behalf of the United States (see also 5 CFR 2635.805).
    (d) The scheduling of an employee's testimony, including the amount 
of time that the employee will be made available for testimony, will be 
subject to the MSPB's approval.



Sec.  1216.208  Restrictions that apply to released records.

    (a) The General Counsel may impose conditions or restrictions on the 
release of official records and information, including the requirement 
that parties to the proceeding obtain a protective order or execute a 
confidentiality agreement to limit access and any further disclosure. 
The terms of the protective order or of a confidentiality agreement must 
be acceptable

[[Page 114]]

to the General Counsel. In cases where protective orders or 
confidentiality agreements have already been executed, the MSPB may 
condition the release of official records and information on an 
amendment to the existing protective order or confidentiality agreement.
    (b) If the General Counsel so determines, original MSPB records may 
be presented for examination in response to a request, but they may not 
be presented as evidence or otherwise used in a manner by which they 
could lose their identity as official MSPB records, nor may they be 
marked or altered. In lieu of the original records, certified copies may 
be presented for evidentiary purposes.



Sec.  1216.209  Procedure when a decision is not made prior to the time 
a response is required.

    If a response to a demand or request is required before the General 
Counsel can make the determination referred to in Sec.  1216.206, the 
General Counsel, when necessary, will provide the court or other 
competent authority with a copy of this part, inform the court or other 
competent authority that the request is being reviewed, provide an 
estimate as to when a decision will be made, and seek a stay of the 
demand or request pending a final determination.



Sec.  1216.210  Procedure in the event of an adverse ruling.

    If the court or other competent authority fails to stay a demand or 
request, the employee upon whom the demand or request is made, unless 
otherwise advised by the General Counsel, will appear, if necessary, at 
the stated time and place, produce a copy of this part, state that the 
employee has been advised by counsel not to provide the requested 
testimony or produce documents, and respectfully decline to comply with 
the demand or request, citing United States ex rel. Touchy v. Ragen, 340 
U.S. 462 (1951).



                       Subpart C_Schedule of Fees



Sec.  1216.301  Fees.

    (a) Generally. The General Counsel may condition the production of 
records or appearance for testimony upon advance payment of a reasonable 
estimate of the costs to the MSPB.
    (b) Fees for records. Fees for producing records will include fees 
for searching, reviewing, and duplicating records, costs of attorney 
time spent in reviewing the request, and expenses generated by materials 
and equipment used to search for, produce, and copy the responsive 
information. Costs for employee time will be calculated on the basis of 
the hourly pay of the employee (including all pay, allowances, and 
benefits). Fees for duplication will be the same as those charged by the 
MSPB in its Freedom of Information Act regulations at 5 CFR part 1204.
    (c) Witness fees. Fees for attendance by a witness will include 
fees, expenses, and allowances prescribed by the court's rules. If no 
such fees are prescribed, witness fees will be determined based upon the 
rule of the Federal district closest to the location where the witness 
will appear and on 28 U.S.C. 1821, as applicable. Such fees will include 
cost of time spent by the witness to prepare for testimony, in travel 
and for attendance in the legal proceeding, plus travel costs.
    (d) Payment of fees. A requester must pay witness fees for current 
MSPB employees and any record certification fees by submitting to the 
Clerk of the Board a check or money order for the appropriate amount 
made payable to the Treasury of the United States. In the case of 
testimony of former MSPB employees, the request must pay applicable fees 
directly to the former MSPB employee in accordance with 28 U.S.C. 1821 
or other applicable statutes.
    (e) Waiver or reduction of fees. The General Counsel, in his or her 
sole discretion, may, upon a showing of reasonable cause, waive or 
reduce any fees in connection with the testimony, production, or 
certification of records.
    (f) De minimis fees. Fees will not be assessed if the total charge 
would be $10.00 or less.



                           Subpart D_Penalties



Sec.  1216.401  Penalties.

    (a) An employee who discloses official records or information or 
gives testimony relating to official information, except as expressly 
authorized by

[[Page 115]]

the MSPB, or as ordered by a Federal court after the MSPB has had the 
opportunity to be heard, may face the penalties provided in 18 U.S.C. 
641 and other applicable laws. Additionally, former MSPB employees are 
subject to the restrictions and penalties of 18 U.S.C. 207 and 216.
    (b) A current MSPB employee who testifies or produces official 
records and information in violation of this part shall be subject to 
disciplinary action.

                       PARTS 1217	1299 [RESERVED]

[[Page 117]]



              CHAPTER III--OFFICE OF MANAGEMENT AND BUDGET




  --------------------------------------------------------------------

                 SUBCHAPTER A--ADMINISTRATIVE PROCEDURES
Part                                                                Page
1300            Standards of conduct........................         119
1302            Privacy Act procedures......................         119
1303            Public information provisions of the 
                    Administrative Procedures Act...........         125
1304            Post employment conflict of interest........         135
1305            Release of official information, and 
                    testimony by OMB personnel as witnesses, 
                    in litigation...........................         138
                      SUBCHAPTER B--OMB DIRECTIVES
1310            OMB circulars...............................         140
1312            Classification, downgrading, 
                    declassification and safeguarding of 
                    national security information...........         141
1315            Prompt payment..............................         153
1320            Controlling paperwork burdens on the public.         167
 SUBCHAPTER C--JOINT REGULATION WITH THE OFFICE OF PERSONNEL MANAGEMENT
1330            Human resources management..................         189
1331-1399

 [Reserved]

[[Page 119]]



                 SUBCHAPTER A_ADMINISTRATIVE PROCEDURES





PART 1300_STANDARDS OF CONDUCT--Table of Contents



    Authority: 5 U.S.C. 7301.



Sec.  1300.1  Cross-reference to employees ethical conduct standards 
and financial disclosure regulations.

    Employees of the Office of Management and Budget are subject to the 
executive branch-wide standards of ethical conduct at 5 CFR part 2635, 
OMB's regulations at 5 CFR part 8701 which supplement the executive 
branch-wide standards, and the executive branch-wide financial 
disclosure regulations at 5 CFR part 2634.

[60 FR 12397, Mar. 7, 1995]



PART 1302_PRIVACY ACT PROCEDURES--Table of Contents



Sec.
1302.1 Rules for determining if an individual is the subject of a 
          record.
1302.2 Requests for access.
1302.3 Access to the accounting of disclosures from records.
1302.4 Requests to amend records.
1302.5 Request for review.
1302.6 Schedule of fees.

    Authority: Pub. L. 93-579, 88 Stat. 1896, 5 U.S.C. 552a(f).

    Source: 41 FR 38491, Sept. 10, 1976, unless otherwise noted.



Sec.  1302.1  Rules for determining if an individual is the subject 
of a record.

    (a) Individuals desiring to know if a specific system of records 
maintained by the Office of Management and Budget contains a record 
pertaining to them should address their inquiries to the Assistant to 
the Director for Administration, Office of Management and Budget, 
Washington, DC 20503. The written inquiry should contain a specific 
reference to the system of records maintained by OMB listed in the OMB 
Notices of Systems of Records or it should describe the type of record 
in sufficient detail to reasonably identify the system of records. 
Notice of OMB systems of records subject to the Privacy Act will be made 
in the Federal Register and copies of the notices will be available upon 
request to the Assistant to the Director for Administration when so 
published. A compilation of such notices will also be made and published 
by the Office of Federal Register, in accordance with section 5 U.S.C. 
552a(f).
    (b) At a minimum, the request should also contain sufficient 
information to identify the requester in order to allow OMB to determine 
if there is a record pertaining to that individual in a particular 
system of records. In instances when the information is insufficient to 
insure disclosure to the individual to whom the information pertains, in 
view of the sensitivity of the information, OMB reserves the right to 
ask the requester for additional identifying information.
    (c) Ordinarily the requester will be informed whether the named 
system of records contains a record pertaining to the requester within 
10 days of receipt of such a request (excluding Saturdays, Sundays, and 
legal Federal holidays). Such a response will also contain or reference 
the procedures which must be followed by the individual making the 
request in order to gain access to the record.
    (d) Whenever a response cannot be made within the 10 days, the 
Assistant to the Director for Administration will inform the requester 
of the reasons for the delay and the date by which a response may be 
anticipated.



Sec.  1302.2  Requests for access.

    (a) Requirement for written requests. Individuals desiring to gain 
access to a record pertaining to them in a system of records maintained 
by OMB must submit their request in writing in accordance with the 
procedures set forth in paragraph (b) of this section. Due to security 
measures in effect in both the Old and New Executive Office Buildings, 
requests made in person (walk-ins) cannot be accepted, except that 
individuals who are employed by the Office of Management and Budget may 
make their request on a regularly scheduled workday (Monday through

[[Page 120]]

Friday, excluding legal Federal holidays) between the hours of 9:00 a.m. 
and 5:30 p.m. Such requests for access by individuals employed by OMB 
need not be made in writing.
    (b) Procedures--(1) Content of the Request. (i) The request for 
access to a record in a system of records shall be addressed to the 
Assistant to the Director for Administration, at the address cited 
above, and shall name the system of records or contain a description (as 
concise as possible) of such system of records. The request should state 
that the request is pursuant to the Privacy Act of 1974. In the absence 
of specifying solely the Privacy Act of 1974 and, if the request may be 
processed under both the Freedom of Information Act and the Privacy Act 
and the request specifies both or neither act, the procedures under the 
Privacy Act of 1974 will be employed. The individual will be advised 
that the procedures of the Privacy Act will be utilized, of the 
existence and the general effect of the Freedom of Information Act, and 
the difference between procedures under the two acts (e.g. fees, time 
limits, access). The request should contain necessary information to 
verify the identity of the requester (see Sec.  1302.2(b)(2)(vi), of 
this part) . In addition, the requester should include any other 
information which may assist in the rapid identification of the record 
for which access is being requested (e.g., maiden name, dates of 
employment, etc.) as well as any other identifying information contained 
in and required by the OMB Notice of Systems of Records.
    (ii) If the request for access follows a prior request under Sec.  
1302.1, of this part, the same identifying information need not be 
included in the request for access if a reference is made to that prior 
correspondence, or a copy of the OMB response to that request is 
attached.
    (iii) If the individual specifically desires a copy of the record, 
the request should so specify.
    (2) OMB action on request. A request for access will ordinarily be 
answered within 10 days, except when the Assistant to the Director for 
Administration determines that access cannot be afforded in that time, 
in which case the requester will be informed of the reason for the delay 
and an estimated date by which the request will be answered. Normally, 
access will be granted within 30 days from the date the request was 
received by the Office of Management and Budget. At a minimum, the 
answer to the request for access shall include the following:
    (i) A statement that there is a record as requested or a statement 
that there is not a record in the system of records maintained by OMB;
    (ii) A statement as to whether access will be granted only by 
providing a copy of the record through the mail; or the address of the 
location and the date and time at which the record may be examined. In 
the event the requester is unable to meet the specified date and time, 
alternative arrangements may be made with the official specified in 
Sec.  1302.2(b)(1) of this part;
    (iii) A statement, when appropriate, that examination in person will 
be the sole means of granting access only when the Assistant to the 
Director for Administration has determined that it would not unduly 
impede the requester's right of access;
    (iv) The amount of fees charged, if any (see Sec.  1302.6 of this 
part). (Fees are applicable only to requests for copies.);
    (v) The name, title, and telephone number of the OMB official having 
operational control over the record; and
    (vi) The documentation required by OMB to verify the identity of the 
requester. At a minimum, OMB's verification standards include the 
following:
    (A) Current or former OMB employees. Current or former OMB employees 
requesting access to a record pertaining to them in a system of records 
maintained by OMB may, in addition to the other requirements of this 
section, and at the sole discretion of the official having operational 
control over the record, have his or her identity verified by visual 
observation. If the current or former OMB employee cannot be so 
identified by the official having operational control over the records, 
identification documentation will be required. Employee identification 
cards, annuitant identification, driver licenses, or the ``employee 
copy'' of any official personnel document in the

[[Page 121]]

record are examples of acceptable identification validation.
    (B) Other than current or former OMB employees. Individuals other 
than current or former OMB employees requesting access to a record 
pertaining to them in a system of records maintained by OMB must produce 
identification documentation of the type described herein, prior to 
being granted access. The extent of the identification documentation 
required will depend on the type of record to be accessed. In most 
cases, identification verification will be accomplished by the 
presentation of two forms of identification. Any additional requirements 
are specified in the system notices published pursuant to 5 U.S.C. 
552a(e)(4).
    (C) Access granted by mail. For records to be accessed by mail, the 
Assistant to the Director for Administration shall, to the extent 
possible, establish identity by a comparison of signatures in situations 
where the data in the record is not so sensitive that unauthorized 
access could cause harm or embarrassment to the individual to whom they 
pertain. No identification documentation will be required for the 
disclosure to the requester of information required to be made available 
to the public by 5 U.S.C. 552. When, in the opinion of the Assistant to 
the Director for Administration, the granting of access through the mail 
could reasonably be expected to result in harm or embarrassment if 
disclosed to a person other than the individual to whom the record 
pertains, a notarized statement of identity or some similar assurance of 
identity will be required.
    (D) Unavailability of identification documentation. If an individual 
is unable to produce adequate identification documentation the 
individual will be required to sign a statement asserting identity and 
acknowledging that knowingly or willfully seeking or obtaining access to 
records about another person under false pretenses may result in a fine 
of up to $5,000. In addition, depending upon the sensitivity of the 
records sought to be accessed, the official having operational control 
over the records may require such further reasonable assurances as may 
be considered appropriate; e.g., statements of other individuals who can 
attest to the identity of the requester. No verification of identity 
will be required of individuals seeking access to records which are 
otherwise available to any person under 5 U.S.C. 552, Freedom of 
Information Act.
    (E) Access by the parent of a minor, or legal guardian. A parent of 
a minor, upon presenting suitable personal identification, may access on 
behalf of the minor any record pertaining to the minor maintained by OMB 
in a system of records. A legal guardian may similarly act on behalf of 
an individual declared to be incompetent due to physical or mental 
incapacity or age by a court of competent jurisdiction, absent a court 
order or consent, a parent or legal guardian has no absolute right to 
have access to a record about a child. Minors are not precluded from 
exercising on their own behalf rights given to them by the Privacy Act.
    (F) Granting access when accompanied by another individual. When an 
individual requesting access to his or her record in a system of records 
maintained by OMB wishes to be accompanied by another individual during 
the course of the examination of the record, the individual making the 
request shall submit to the official having operational control of the 
record, a signed statement authorizing that person access to the record.
    (G) Denial of access for inadequate identification documentation. If 
the official having operation control over the records in a system of 
records maintained by OMB determines that an individual seeking access 
has not provided sufficient identification documentation to permit 
access, the official shall consult with the Assistant to the Director 
for Administration prior to finally denying the individual access.
    (H) Review of decision to deny access. Whenever the Assistant to the 
Director for Administration determines, in accordance with the 
procedures herein, that access cannot be granted, the response will also 
include a statement of the procedures to obtain a review of the decision 
to deny in accordance with Sec.  1302.5 of this part.
    (vii) Exceptions. Nothing in these regulations shall be construed to 
entitle an individual the right to access to any

[[Page 122]]

information compiled in reasonable anticipation of a civil action or 
proceedings. The mere fact that records in a system of records are 
frequently the subject of litigation does not bring those systems of 
records within the scope of this provision. This provision is not 
intended to preclude access by an individual to records which are 
available to that individual under other processes such as the Freedom 
of Information Act or the rules of civil procedure.



Sec.  1302.3  Access to the accounting of disclosures from records.

    Rules governing the granting of access to the accounting of 
disclosures are the same as those for granting access to the records 
(including verification of identity) outlined in Sec.  1302.2, of this 
part.



Sec.  1302.4  Requests to amend records.

    (a) Requirement for written requests. Individuals desiring to amend 
a record that pertain to them in a system of records maintained by OMB, 
must submit their request in writing in accordance with the procedures 
set forth herein unless this requirement is waived by the official 
having responsibility for the system of records. Records not subject to 
the Privacy Act of 1974 will not be amended in accordance with these 
provisions. However, individuals who believe that such records are 
inaccurate may bring this to the attention of OMB.
    (b) Procedures. (1) (i) The request to amend a record in a system of 
records shall be addressed to the Assistant to the Director for 
Administration. Included in the request shall be the name of the system 
and a brief description of the record proposed for amendment. In the 
event the request to amend the record is the result of the individual's 
having gained access to the record in accordance with the provisions 
concerning access to records as set forth above, copies of previous 
correspondence between the requester and OMB will serve in lieu of a 
separate description of the record.
    (ii) When the individual's identity has been previously verified 
pursuant to Sec.  1302.2(b)(2)(vi) herein, further verification of 
identity is not required as long as the communication does not suggest 
that a need for verification is present. If the individual's identity 
has not been previously verified, OMB may require identification 
validation as described in Sec.  1302.2(b)(2)(vi). Individuals desiring 
assistance in the preparation of a request to amend a record should 
contact the Assistant to the Director for Administration at the address 
cited above.
    (iii) The exact portion of the record the individual seeks to have 
amended should be clearly indicated. If possible, the proposed 
alternative language should also be set forth, or at a minimum, the 
facts which the individual believes are not accurate, relevant, timely, 
or complete should be set forth with such particularity as to permit OMB 
not only to understand the individual's basis for the request, but also 
to make an appropriate amendment to the record.
    (iv) The request must also set forth the reasons why the individual 
believes his record is not accurate, relevant, timely, or complete. In 
order to avoid the retention by OMB of personal information merely to 
permit verification of records, the burden of persuading OMB to amend a 
record will be upon the individual. The individual must furnish 
sufficient facts to persuade the official in charge of the system of the 
inaccuracy, irrelevancy, timeliness, or incompleteness of the record.
    (v) Incomplete or inaccurate requests will not be rejected 
categorically. The individual will be asked to clarify the request as 
needed.
    (2) OMB action on the request. To the extent possible, a decision 
upon a request to amend a record will be made within 10 days, excluding 
Saturdays, Sundays, and legal Federal holidays. The response reflecting 
the decision upon a request for amendment will include the following:
    (i) The decision of the Office of Management and Budget whether to 
grant in whole, or deny any part of the request to amend the record.
    (ii) The reasons for the determination for any portion of the 
request which is denied.
    (iii) The name and address of the official with whom an appeal of 
the denial may be lodged.

[[Page 123]]

    (iv) The name and address of the official designated to assist, as 
necessary, and upon request of, the individual making the request in the 
preparation of the appeal.
    (v) A description of the review of the appeal within OMB (see Sec.  
1302.5 of this part).
    (vi) A description of any other procedures which may be required of 
the individual in order to process the appeal.

If the nature of the request or the system of records precludes a 
decision within 10 days, the individual making the request will be 
informed within 10 days of the expected date for a decision. Such a 
decision will be issued as soon as it is reasonably possible, normally 
within 30 days from the receipt of the request (excluding Saturdays, 
Sundays, and legal Federal holidays) unless unusual circumstances 
preclude completing action within that time. If the expected completion 
date for the decision indicated cannot be met, the individual will be 
advised of that delay and of a revised date when the decision may be 
expected to be completed.



Sec.  1302.5  Request for review.

    (a) Individuals wishing to request a review of the decision by OMB 
with regard to an initial request to access or amend a record in 
accordance with the provisions of Sec. Sec.  1302.2 and 1302.4 of this 
part, should submit the request for review in writing and, to the extent 
possible, include the information specified in Sec.  1302.5(b), below. 
Individuals desiring assistance in the preparation of their request for 
review should contact the Assistant to the Director for Administration 
at the address provided herein.
    (b) The request for review should contain a brief description of the 
record involved or in lieu thereof, copies of the correspondence from 
OMB in which the request to access or to amend was denied and also the 
reasons why the requester believes that access should be granted or the 
disputed information amended. The request for review should make 
reference to the information furnished by the individual in support of 
his claim and the reasons as required by Sec. Sec.  1302.2 and 1302.4 of 
this part set forth by OMB in its decision denying access or amendment. 
Appeals filed without a complete statement by the requester setting 
forth the reasons for the review will, of course, be processed. However, 
in order to make the appellate process as meaningful as possible, the 
requester's disagreement should be set forth in an understandable 
manner. In order to avoid the unnecessary retention of personal 
information, OMB reserves the right to dispose of the material 
concerning the request to access or amend a record if no request for 
review in accordance with this section is received by OMB within 180 
days of the mailing by OMB of its decision upon an initial request. A 
request for review received after the 180 day period may, at the 
discretion of the Assistant to the Director for Administration, be 
treated as an initial request to access or amend a record.
    (c) The request for review should be addressed to the Assistant to 
the Director for Administration.
    (d) Upon receipt of a request for review, the Assistant to the 
Director for Administration will convene a review group composed of the 
Assistant to the Director for Administration, the General Counsel, or 
their designees, and the official having operational control over the 
record. This group will review the basis for the requested review and 
will develop a recommended course of action to the Deputy Director. If 
at any time additional information is required from the requester, the 
Assistant to the Director for Administration is authorized to acquire it 
or authorize its acquisition from the requester.
    (e) The Office of Management and Budget has established an internal 
Committee on Freedom of Information and Privacy (hereinafter referred to 
as the Committee). The Committee is composed of:
    (1) Deputy Director;
    (2) Assistant to the Director for Administration;
    (3) General Counsel;
    (4) Assistant Director for Budget Review;
    (5) Assistant Director for Legislative Reference;
    (6) Assistant to the Director for Public Affairs;
    (7) Deputy Associate Director for Information Systems;

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    (8) Deputy Associate Director for Statistical Policy;
    (9) Deputy Associate Director for National Security;
    (10) Budget and Management Officer;
    (11) Personnel Officer.
    (f) The Committee, when directed by the Assistant to the Director 
for Administration, will review the Office's administration of the 
Freedom of Information and Privacy Acts and make recommendations for the 
improvement thereto. In addition, the Committee, upon the request of the 
Deputy Director, may evaluate a request for review or appeal and 
recommend a decision to the Deputy Director, who has the final authority 
regarding appeals.
    (g) The Deputy Director will inform the requester in writing of the 
decision on the request for review within 20 days (excluding Saturdays, 
Sundays, and legal Federal holidays) from the date of receipt by OMB of 
the individual's request for review unless the Deputy Director extends 
the 20 day period for good cause. The extension and the reasons therefor 
will be sent by OMB to the requester within the initial 20 day period. 
Such extensions should not be routine and should not normally exceed an 
additional thirty days. If the decision does not grant in full the 
request for amendment, the notice of the decision will provide a 
description of the steps the individual may take to obtain judicial 
review of such a decision, a statement that the individual may file a 
concise statement with OMB setting forth the individual's reasons for 
his disagreement with the decision and the procedures for filing such a 
statement of disagreement. The Assistant to the Director for 
Administration has the authority to determine the ``conciseness'' of the 
statement, taking into account the scope of the disagreement and the 
complexity of the issues. Upon the filing of a proper concise statement 
by the individual, any subsequent disclosure of the information in 
dispute will be clearly noted so that the fact that the record is 
disputed is apparent, a copy of the concise statement furnished and a 
concise statement by OMB setting forth its reasons for not making the 
requested changes, if OMB chooses to file such a statement. A notation 
of a dispute is required to be made only if an individual informs the 
agency of his disagreement with OMB's determination in accordance with 
Sec.  1302.5 (a), (b) and (c). A copy of the individual's statement, and 
if it chooses, OMB's statement will be sent to any prior transferee of 
the disputed information who is listed on the accounting required by 5 
U.S.C. 552a(c). If the reviewing official determines that the record 
should be amended in accordance with the individual's request, OMB will 
promptly correct the record, advise the individual, and inform previous 
recipients if an accounting of the disclosure was made pursuant to 5 
U.S.C. 552(a)(c). The notification of correction pertains to information 
actually disclosed.



Sec.  1302.6  Schedule of fees.

    (a) Prohibitions against charging fees. Individuals will not be 
charged for:
    (1) The search and review of the record,
    (2) Any copies of the record produced as a necessary part of the 
process of making the record available for access, or
    (3) Any copies of the requested record when it has been determined 
that access can only be accomplished by providing a copy of the record 
through the mail.
    (b) Waiver. The Assistant to the Director for Administration may at 
no charge, provide copies of a record if it is determined the production 
of the copies is in the interest of the Government.
    (c) Fee schedule and method of payment. Fees will be charged as 
provided below except as provided in paragraphs (a) and (b) of this 
section.
    (1) Duplication of records. Records will be duplicated at a rate of 
$.10 per page for all copying of 4 pages or more. There is not charge 
for duplication 3 or fewer pages.
    (2) Where it is anticipated that the fees chargeable under this 
section will amount to more than $25.00, the requester shall be promptly 
notified of the amount of the anticipated fee or such portion thereof as 
can readily be estimated. In instances where the estimated fees will 
greatly exceed $25.00, an advance deposit may be required. The notice or 
request for an advance

[[Page 125]]

deposit shall extend an offer to the requester to consult with Office 
personnel in order to reformulate the request in a manner which will 
reduce the fees, yet still meet the needs of the requester.
    (3) Fees should be paid in full prior to issuance of requested 
copies. In the event the requester is in arrears for previous requests 
copies will not be provided for any subsequent request until the arrears 
have been paid in full.
    (4) Remittances shall be in the form either of a personal check or 
bank draft drawn on a bank in the United States, or a postal money 
order. Remittances shall be made payable to the order of the Treasury of 
the United States and mailed or delivered to the Assistant to the 
Director for Administration, Office of Management and Budget, 
Washington, DC 20503.
    (5) A receipt for fees paid will be given upon request.



PART 1303_PUBLIC INFORMATION PROVISIONS OF THE ADMINISTRATIVE PROCEDURES ACT--
Table of Contents



                                 General

Sec.
1303.1 Purpose.
1303.2 Authority and functions.
1303.3 Organization.

                          Proactive Disclosures

1303.10 Availability of proactive disclosures.

                    Requirements for Making Requests

1303.20 Where to send requests.
1303.21 Requesters making requests about themselves or others.
1303.22 Requirement for providing description of the records sought.

                Responsibility for Responding to Requests

1303.30 Responsibility for responding to requests.

                     Timing of Responses to Requests

1303.40 Timing of responses to requests.

                          Responses to Requests

1303.50 Responses to requests.

                   Confidential Commercial Information

1303.60 Notification procedures for confidential commercial information.

                                 Appeals

1303.70 Appeals.

                         Preservation of Records

1303.80 Preservation of records.

                                  Fees

1303.90 Definitions.
1303.91 Fees to be charged--general.
1303.92 Fees to be charged--categories of requesters.
1303.93 Miscellaneous fee provisions.
1303.94 Waiver or reduction of charges.

    Authority: 5 U.S.C. 301 and 5 U.S.C. 552, unless otherwise noted.

    Source: 84 FR 22951, May 21, 2019, unless otherwise noted.

                                 General



Sec.  1303.1  Purpose.

    This part implements the Freedom of Information Act (FOIA), 5 U.S.C. 
552, as amended, and prescribes the rules governing the public 
availability of Office of Management and Budget (OMB) records. The rules 
in this subpart should be read in conjunction with the text of the FOIA.



Sec.  1303.2  Authority and functions.

    The general functions of OMB, as provided by statute and by 
executive order, are to develop and to execute the budget, oversee 
implementation of Administration policies and programs, advise and 
assist the President, and develop and implement management policies for 
the government.



Sec.  1303.3  Organization.

    (a) The central organization of OMB is as follows:
    (1) The Director's Office includes the Director, the Deputy 
Director, the Deputy Director for Management, and the Executive 
Associate Director.
    (2) Staff Offices include General Counsel, Legislative Affairs, 
Communications, Management and Operations, and Economic Policy.
    (3) Offices that provide OMB-wide support include the Legislative 
Reference Division and the Budget Review Division.
    (4) Resource Management Offices, which develop and support the 
President's management and budget agenda

[[Page 126]]

in the areas of Natural Resources, Energy and Science; National 
Security; Health; Education, Income Maintenance and Labor; and General 
Government Programs.
    (5) Statutory offices include the Offices of Federal Financial 
Management, Federal Procurement Policy, Intellectual Property 
Enforcement Coordinator; E-government and Information Technology; and 
Information and Regulatory Affairs.
    (b) OMB is located in the Eisenhower Executive Office Building, 17th 
Street and Pennsylvania Avenue NW, and the New Executive Office 
Building, 725 17th Street NW, Washington, DC 20503. OMB has no field 
offices. Security in both buildings prevents visitors from entering the 
building without an appointment.

                          Proactive Disclosures



Sec.  1303.10  Availability of proactive disclosures.

    OMB makes available records that are required by the FOIA to be made 
available for public inspection in an electronic format. OMB information 
pertaining to matters issued, adopted, or promulgated by OMB that is 
within the scope of 5 U.S.C. 552(a)(2) is available electronically on 
OMB's website at www.whitehouse.gov/omb/. Additionally, for help 
accessing these materials, you may contact OMB's FOIA Officer at (202) 
395-3642.

                    Requirements for Making Requests



Sec.  1303.20  Where to send requests.

    The FOIA Officer is responsible for acting on all initial requests. 
Individuals wishing to file a request under the FOIA should address 
their request in writing to FOIA Officer, Office of Management and 
Budget, 725 17th Street NW, Room 9204, Washington, DC 20503, via fax to 
(202) 395-3504, or by email at [email protected]. Additionally, OMB's 
FOIA Public Liaison is available to assist requesters who have questions 
and can be reached at (202) 395-7545 or in writing at the address 
provided in this section.



Sec.  1303.21  Requesters making requests about themselves or others.

    A requester who is making a request for records about himself or 
herself pursuant to 5 U.S.C. 552a must comply with the verification of 
identity requirements as determined by OMB pursuant to OMB's Rules For 
Determining if an Individual Is the Subject of a Record in 5 CFR 1302.1. 
Where a request for records pertains to another individual, a requester 
may receive greater access by submitting either a notarized 
authorization signed by that individual or a declaration made in 
compliance with the requirements set forth in 28 U.S.C. 1746 by that 
individual authorizing disclosure of the records to the requester, or by 
submitting proof that the individual is deceased (e.g., a copy of a 
death certificate or an obituary). As an exercise of administrative 
discretion, OMB may require a requester to supply additional information 
if necessary in order to verify that a particular individual has 
consented to disclosure.



Sec.  1303.22  Requirement for providing description of the records sought.

    (a) Requesters must describe the records sought in sufficient detail 
to enable OMB personnel to locate them with a reasonable amount of 
effort. To the extent possible, requesters should include specific 
information that may help the agency identify the requested records, 
such as the date, title or name, author, recipient, subject matter of 
the record, case number, file designation, or reference number. Before 
submitting their requests, requesters may contact the FOIA Officer or 
FOIA Public Liaison to discuss the records they seek and to receive 
assistance in describing the records.
    (b) If, after receiving a request, OMB determines that the request 
does not reasonably describe the records sought, OMB will inform the 
requester what additional information is needed and why the request is 
otherwise insufficient. Requesters who are attempting to reformulate or 
modify such a request may discuss their request with the FOIA Officer or 
the FOIA Public Liaison. If a request does not reasonably describe the 
records sought,

[[Page 127]]

OMB's response to the request may be delayed.

                Responsibility for Responding to Requests



Sec.  1303.30  Responsibility for responding to requests.

    (a) Search cutoff date. In determining which records are responsive 
to a request, OMB ordinarily will include only records in its possession 
as of the date that it begins its search. If any other date is used, OMB 
will inform the requester of that date.
    (b) Transfer of records to the National Archives and Records 
Administration (NARA). Permanent records of OMB which have been 
transferred to the control of NARA under the Federal Records Act are not 
in the control of OMB and are therefore not accessible by a FOIA request 
to OMB. Requests for such records should be directed to NARA.
    (c) Consultation and referral. When reviewing records, OMB will 
determine whether another agency of the Federal Government is better 
able to determine whether the record is exempt from disclosure under the 
FOIA. As to any such record, OMB will proceed in one of the following 
ways:
    (1) Consultation. When records contain information of interest to 
another agency, OMB typically will consult with that agency prior to 
making a release determination.
    (2) Referral. (i) When OMB believes that a different agency is best 
able to determine whether to disclose the record, OMB will refer the 
responsibility for responding to the request regarding that record to 
that agency. Ordinarily, the agency that originated the record is best 
situated to make the disclosure determination. However, if OMB and the 
originating agency jointly agree that OMB is in the best position to 
respond regarding the record, then OMB may provide it.
    (ii) If OMB determines that another agency is best situated to 
consider a request, OMB promptly will notify the requestor and inform 
him of the agency which will be processing his request, except when 
disclosure of the identity of the agency could harm an interest 
protected by an applicable FOIA exemption. In those instances, in order 
to avoid harm to an interest protected by an applicable exemption, OMB 
will coordinate with the originating agency to seek its views on the 
disclosability of the record and convey the release determination for 
the record that is the subject of the coordination to the requester.

                     Timing of Responses to Requests



Sec.  1303.40  Timing of responses to requests.

    (a) In general. Upon receipt of any request for information or 
records, the FOIA Officer will determine within 20 working days 
(excepting Saturdays, Sundays, and legal public holidays) after the 
receipt of such request whether it is appropriate to grant the request 
and will immediately notify the requester of such determination and the 
reasons therefore and the right of such person to seek assistance from 
the FOIA Public Liaison. The 20-day period, as used herein, shall 
commence on the date on which the FOIA Officer or the FOIA Public 
Liaison first receives the request but in any event not later than 10 
working days after the request is first received by any component's 
office that is designated by these regulations to receive requests. OMB 
may toll this 20-day period either one time while OMB is awaiting 
information that it has reasonably requested from the requester or any 
time when necessary to clarify with the requester issues regarding fee 
assessment. OMB's receipt of the requester's response to OMB's request 
for information ends the tolling period.
    (b) Multitrack processing. (1) FOIA requests are placed on one of 
three tracks:
    (i) Track one covers those requests that seek and receive expedited 
processing pursuant to subsection (a)(6)(E) of the FOIA and in 
accordance with paragraph (e) of this section;
    (ii) Track two covers simple requests;
    (iii) Track three covers complex requests.
    (2) Whether a request is simple or complex is based on the amount of 
work or time needed to process the request. OMB considers various 
factors,

[[Page 128]]

including the number of records requested, the number of pages involved 
in processing the request, and the need for consultations or referrals. 
OMB will advise the requester of the processing track in which their 
request has been placed and provide an opportunity to narrow or modify 
their request so that the request can be placed in a different 
processing track.
    (c) Unusual circumstances. Whenever the statutory time limit for 
processing a request cannot be met because of ``unusual circumstances,'' 
as defined in the FOIA, and OMB extends the time limit on that basis, 
OMB will, before expiration of the 20-day period to respond, notify the 
requester in writing of the unusual circumstances involved and of the 
date by which processing of the request can be expected to be completed. 
Where the extension exceeds 10 working days, OMB will, as described by 
the FOIA, provide the requester with an opportunity to modify the 
request or arrange an alternative time period for processing. OMB will 
alert requesters to the availability of its FOIA Public Liaison, who 
will assist in the resolution of any disputes between the requester and 
OMB, and notify the requester of the right of the requester to seek 
dispute resolution services from the Office of Government Information 
Services (OGIS).
    (d) Aggregating requests. To satisfy unusual circumstances under the 
FOIA, OMB may aggregate those requests for the purposes of this section 
when OMB reasonably believes that a requester, or a group of requesters 
acting in concert, has submitted requests that constitute a single 
request, that would otherwise satisfy the unusual circumstances 
specified in this section. Multiple requests involving unrelated matters 
will not be aggregated.
    (e) Expedited processing. (1) Requests and appeals will be given 
expedited treatment in cases where OMB determines:
    (i) The lack of expedited treatment could reasonably be expected to 
pose an imminent threat to the life or physical safety of an individual;
    (ii) There is an urgency to inform the public about an actual or 
alleged Federal Government activity;
    (iii) Failure to respond to the request expeditiously would result 
in the loss of due process rights in other proceedings; or
    (iv) There are possible questions, in a matter of widespread and 
exceptional public interest, about the government's integrity which 
effect public confidence.
    (2) A request for expedited processing may be made at the time of 
the initial request for records or at any later time.
    (3) A requester who seeks expedited processing must submit a 
statement, certified to be true and correct to the best of the 
requester's knowledge and belief, explaining in detail the basis for 
requesting expedited processing. OMB may waive this certification 
requirement at its discretion.
    (4) OMB will decide whether to grant expedited processing and will 
notify the requester within 10 days after the date of the request. If a 
request for expedited treatment is granted, OMB will prioritize the 
request and process the request as soon as practicable. If a request for 
expedited processing is denied, any appeal of that decision will be 
acted on expeditiously.

                          Responses to Requests



Sec.  1303.50  Responses to requests.

    (a) Acknowledgements of requests. OMB will assign an individualized 
tracking number to each request received that will take longer than ten 
days to process; and acknowledge each request, informing the requestor 
of their tracking number if applicable; and, upon request, make 
available information about the status of a request to the requester 
using the assigned tracking number, including--
    (1) The date on which OMB originally received the request; and
    (2) An estimated date on which OMB will complete action on the 
request.
    (b) Grants of requests. Once OMB makes a determination to grant a 
request in full or in part, it will notify the requester in writing. OMB 
also will inform the requester of any fees charged under Sec.  1303.9 
and shall provide the requested records to the requester promptly upon 
payment of any applicable fees. OMB will inform the requester

[[Page 129]]

of the availability of the FOIA Public Liaison to offer assistance.
    (c) Adverse determinations of requests. In the case of an adverse 
determination, the FOIA Officer will immediately notify the requester 
of--
    (1) The right of the requester to appeal to the head of OMB within 
90 calendar days after the date of such adverse determination in 
accordance with Sec.  1303.70;
    (2) The right of such person to seek dispute resolution services 
from the FOIA Public Liaison or the OGIS at NARA;
    (3) The names and titles or positions of each person responsible for 
the denial of such request; and
    (4) OMB's estimate of the volume of any requested records OMB is 
withholding, unless providing such estimate would harm an interest 
protected by the exemption in 5 U.S.C. 552(b).

                   Confidential Commercial Information



Sec.  1303.60  Notification procedures for confidential commercial information.

    (a) Definitions. (1) ``Confidential commercial information'' means 
commercial or financial information obtained by OMB from a submitter 
that may be protected from disclosure under Exemption 4 of the FOIA, 5 
U.S.C. 552(b)(4).
    (2) ``Submitter'' means any person or entity, including a 
corporation, State, or foreign government, but not including another 
Federal Government entity, that provides confidential commercial 
information, either directly or indirectly to the Federal Government.
    (b) Designation of confidential commercial information. A submitter 
of confidential commercial information must use good faith efforts to 
designate by appropriate markings, at the time of submission, any 
portion of its submission that it considers to be protected from 
disclosure under Exemption 4 of the FOIA. These designations expire 10 
years after the date of the submission unless the submitter requests and 
provides justification for a longer designation period.
    (c) When notice to submitters is required. (1) OMB will promptly 
notify a submitter when OMB determines that a pending FOIA lawsuit seeks 
to compel the disclosure of records containing the submitter's 
confidential information, or if OMB determines that it may be required 
to disclose such records, provided:
    (i) The requested information has been designated by the submitter 
as information considered protected from disclosure under Exemption 4 in 
accordance with paragraph (b) of this section; or
    (ii) OMB has a reason to believe that the requested information may 
be protected from disclosure under Exemption 4, but has not yet 
determined whether the information is protected from disclosure.
    (2) The notice will describe the commercial information requested or 
include a copy of the requested records or portions of records 
containing the information. In cases involving a voluminous number of 
submitters, OMB may post or publish a notice in a place or manner 
reasonably likely to inform the submitters of the proposed disclosure, 
instead of sending individual notifications.
    (d) Exceptions to submitter notice requirements. The notice 
requirements of this section do not apply if:
    (1) OMB determines that the information is exempt under the FOIA, 
and therefore will not be disclosed;
    (2) The information has been lawfully published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by law, including 
regulation issued in accordance with the requirements of Executive Order 
12,600 of June 23, 1987; or
    (4) The designation made by the submitter under paragraph (b) of 
this section appears obviously frivolous. In such case, OMB will give 
the submitter written notice of any final decision to disclose the 
information within a reasonable number of days prior to a specified 
disclosure date.
    (e) Opportunity to object to disclosure. (1) Unless OMB specifies a 
different period, submitters who fail to respond to OMB's notice within 
30 days of OMB's notice will be deemed to have consented to disclosure.
    (2) If a submitter has any objections to disclosure, it should 
provide OMB a

[[Page 130]]

detailed written statement that specifies all grounds for withholding 
the particular information under any exemption of the FOIA. In order to 
rely on Exemption 4 as basis for nondisclosure, the submitter must 
explain why the information constitutes a trade secret or commercial or 
financial information that is confidential. OMB is not required to 
consider any information received after the date of any disclosure 
decision.
    (3) Any information provided by a submitter under this section may 
itself be subject to disclosure under the FOIA.
    (f) Analysis of objections. OMB will consider a submitter's 
objections and specific grounds for nondisclosure in deciding whether to 
disclose the requested information.
    (g) Notice of intent to disclose. Whenever OMB decides to disclose 
information over the objection of a submitter, OMB will provide the 
submitter written notice, which will include:
    (1) A statement of the reasons why each of the submitter's 
disclosure objections were not sustained;
    (2) A description of the information to be disclosed or copies of 
the records as OMB intends to release them; and
    (3) A specified disclosure date, at least 30 days after OMB 
transmits its notice of intent to disclose, except for good cause.
    (h) Requester notification. OMB will notify the requester whenever 
it provides the submitter with notice and an opportunity to object to 
disclosure; whenever it notifies the submitter of its intent to disclose 
the requested information; and whenever a submitter files a lawsuit to 
prevent the disclosure of the information.

                                 Appeals



Sec.  1303.70  Appeals.

    (a) A requester must appeal to the head of OMB in writing within 90 
calendar days after the date of such adverse determination addressed to 
the FOIA Officer at the address specified in Sec.  1303.20. The appeal 
must include a statement explaining the basis for the appeal. 
Determinations of appeals will be set forth in writing and signed by the 
Deputy Director, or his designee, within 20 working days. If on appeal 
the denial is upheld in whole or in part, the written determination will 
also contain a notification of the provisions for judicial review, the 
names of the persons who participated in the determination, and notice 
of the services offered by the OGIS as a non-exclusive alternative to 
litigation.
    (b) OGIS's dispute resolution services is a voluntary process. If 
OMB agrees to participate in the mediation services provided by OGIS, 
OMB will actively engage as a partner to the process in an attempt to 
resolve the dispute. An appeal ordinarily will not be adjudicated if the 
request becomes a matter of FOIA litigation. Before seeking review by a 
court of an agency's adverse determination, a requester generally must 
first submit a timely administrative appeal.

                         Preservation of Records



Sec.  1303.80  Preservation of records.

    OMB will preserve all correspondence pertaining to the requests that 
it receives under this section, as well as copies of all requested 
records, until disposition or destruction is authorized pursuant to 
title 44 of the United States Code or NARA's General Records Schedule 
4.2. OMB will not dispose of or destroy records while they are the 
subject of a pending request, appeal, or lawsuit under the FOIA.

                                  Fees



Sec.  1303.90  Definitions.

    For the purpose of this part, all definitions set forth in the FOIA 
apply.
    (a) The term ``direct costs'' means those expenditures that OMB 
actually incurs in searching for and duplicating (and in the case of 
commercial requesters, reviewing) documents to respond to a FOIA 
request. Not included in direct costs are overhead expenses such as 
costs of space, heating, or lighting the facility in which the records 
are stored.
    (b) The term ``search'' means the process of looking for and 
retrieving records or information responsive to a request. It includes 
page-by-page or line-by-line identification of information within 
records and also includes

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reasonable efforts to locate and retrieve information from records 
maintained in electronic form or format.
    (c) The term ``duplication'' means the making of a copy of a 
document, or of the information contained in it, that is necessary to 
respond to a FOIA request. Such copies can be in the form of paper, 
microform, audio-visual materials, or electronic records (e.g., magnetic 
tape or disk), among others.
    (d) The term ``review'' refers to the process of examining documents 
located in response to a request to determine whether any portion of any 
document located is permitted to be withheld. It also refers to the 
processing of any documents for disclosure, e.g., doing all that is 
necessary to excise them and otherwise prepare them for release. Review 
does not include time spent resolving general legal or policy issues 
regarding the application of exemptions.
    (e) The term ``commercial use request'' is a request that asks for 
information for a use or purpose that furthers a commercial, trade, or 
profit interest, which can include furthering those interests through 
litigation.
    (f) The term ``educational institution'' is any school that operates 
a program of teaching or scholarly research. To be eligible for 
inclusion in this category, requesters must show that the request is 
being made as authorized by and in connection with the requester's role 
at a qualifying institution and that the records are not sought for 
commercial use, but are sought in furtherance of teaching or scholarly 
research. OMB may seek assurance from the requester that the request is 
in furtherance of teaching or scholarly research and will advise 
requesters of their placement in this category.
    (g) The term ``non-commercial scientific institution'' refers to an 
institution that is not operated on a commercial basis (as that term is 
referenced in paragraph (e) of this section) and that is operated solely 
for the purpose of conducting scientific research where the results of 
the research are not intended to promote any particular product or 
industry. A requester in this category must show that the request is 
authorized by and is made under the auspices of a qualifying institution 
and that the records are sought to further scientific research and are 
not for a commercial use.
    (h) The term ``representative of the news media'' refers to any 
person or entity that gathers information of potential interest to a 
segment of the public, uses its editorial skills to turn the raw 
materials into a distinct work, and distributes that work to an 
audience.
    (i) The term ``news'' means information that is about current events 
or that would be of current interest to the public. Examples of news 
media entities include television or radio stations that broadcast 
``news'' to the public at large and publishers of periodicals that 
disseminate ``news'' and make their products available through a variety 
of means to the general public, including news organizations that 
disseminate solely on the internet. A request for records supporting the 
news-dissemination function of the requester will not be considered to 
be for a commercial use. ``Freelance'' journalists who demonstrate a 
solid basis for expecting publication through a news media entity will 
be considered as a representative of the news media. A publishing 
contract would provide the clearest evidence that publication is 
expected; however, OMB can also consider a requester's past publication 
record in making this determination. OMB will advise requesters of their 
placement in this category.



Sec.  1303.91  Fees to be charged--general.

    OMB will charge fees that recoup the full allowable direct costs it 
incurs. Moreover, it will use the most efficient and least costly 
methods to comply with requests for documents made under the FOIA. For 
example, employees should not engage in line-by-line search when merely 
duplicating an entire document would prove the less expensive and 
quicker method of complying with a request. Search should be 
distinguished, moreover, from review of material in order to determine 
whether the material is exempt from disclosure. When documents that 
would be responsive to a request are maintained for distribution by 
agencies operating statutory-based fee schedule programs (see definition 
in Sec.  1303.30(b)),

[[Page 132]]

such as the NTIS, OMB will inform requesters of the steps necessary to 
obtain records from those sources.
    (a) Search. Requests made by educational institutions, noncommercial 
scientific institutions, or representatives of the news media are not 
subject to search fees. OMB will charge search fees for all other 
requesters, subject to the restrictions of paragraph (h) of this 
section.
    (1) For each quarter hour spent by personnel searching for requested 
records, including electronic searches that do not require new 
programming, the fees will be charged as follows: Professional--$10.00; 
and clerical/administrative--$4.75.
    (2) Requesters shall be charged the direct costs associated with 
conducting any search that requires the creation of a new computer 
program to locate the requested records. Requesters shall be notified of 
the costs associated with creating such a program and must agree to pay 
the associated costs before the costs may be incurred.
    (b) Review of records. Only requesters who are seeking documents for 
commercial use may be charged for time spent reviewing records to 
determine whether they are exempt from mandatory disclosure. Charges may 
be assessed only for the initial review; i.e., the review conducted by 
an agency to determine whether an exemption applies to a particular 
record or portion of a record. Records or portions of records withheld 
in full under an exemption that is subsequently determined not to apply 
may be reviewed again to determine the applicability of other exemptions 
not previously considered. The direct costs for such a subsequent review 
are assessable. However, review costs will not include any costs 
incurred in resolving issues of law or policy that may be raised in the 
course of processing a request under this section. Review fees will be 
charged at the same rates as those charged for a search under paragraph 
(a)(1) of this section.
    (c) Duplication of records. The requester's specified preference of 
form or format of disclosure will be honored if the record is readily 
reproducible in that format. Where photocopies are supplied, OMB will 
provide one copy per request at a cost of five cents per page. For 
copies prepared by computer, such as tapes or printouts, OMB will charge 
the actual cost, including operator time, of production of the tape or 
printout. For other methods of reproduction or duplication, OMB will 
charge the actual direct costs of producing the document(s).
    (d) Other charges. OMB will recover the full costs of providing 
services such as those enumerated below when it elects to provide them:
    (1) Certifying that records are true copies; or
    (2) Sending records by special methods, such as express mail.
    (e) Remittances. Remittances shall be in the form of either a 
personal check, a bank draft drawn on a bank in the United States, or a 
postal money order. Remittances shall be made payable to the order of 
the Treasury of the United States and mailed to the FOIA Officer at the 
address found in Sec.  1303.10(b).
    (f) Receipts and refunds. A receipt for fees paid will be provided 
upon request. Refund of fees paid for services actually rendered will 
not be made.
    (g) First 100 pages and two hours of search time. With the exception 
of requesters seeking documents for a commercial use, OMB will provide 
the first 100 pages of duplication (or the cost equivalent for other 
media) and the first two hours of search time without charge.
    (h) Restrictions on assessing fees. If OMB fails to comply with the 
FOIA's time limits in which to respond to a request, it may not charge 
search fees, or, in the instances of requests from requesters described 
in Sec.  1303.90(g) through (i), may not charge duplication fees, except 
as described in the following circumstances:
    (1) If OMB has determined that unusual circumstances, as defined by 
the FOIA, apply, and OMB provided timely written notice to the requester 
in accordance with the FOIA, a failure to comply with the time limit 
will be excused for an additional 10 days.
    (2) If OMB has determined that unusual circumstances, as defined by 
the FOIA, apply, and more than 5,000 pages are necessary to respond to 
the request, OMB may charge search fees, or, in the case of requesters 
described in

[[Page 133]]

Sec.  1303.90(g) through (i), may charge duplication fees, if OMB has 
provided timely written notice to the requester in accordance with the 
FOIA and OMB has discussed with the requester via written mail, email, 
or telephone (or made not less than three good-faith attempts to do so) 
how the requester could effectively limit the scope of the request in 
accordance with 5 U.S.C. 552(a)(6)(B)(ii).
    (3) If a court determines that exceptional circumstances exist, as 
defined by the FOIA, a failure to comply with the time limits shall be 
excused for the length of time provided by the court order.
    (i) No Fees under $25. No fee will be charged when the total fee, 
after deducting the 100 free pages (or its cost equivalent) and the 
first two hours of search, is equal to or less than $25. If OMB 
estimates that the charges are likely to exceed $25, it will notify the 
requester of the estimated amount of fees, unless the requester has 
indicated in advance his willingness to pay fees as high as those 
anticipated. Such a notice shall offer a requester the opportunity to 
confer with agency personnel to meet the requester's needs at a lower 
cost.



Sec.  1303.92  Fees to be charged--categories of requesters.

    There are four categories of FOIA requesters: Commercial use 
requesters; educational and non-commercial scientific institutions; 
representatives of the news media; and all other requesters. The 
specific levels of fees for each of these categories are:
    (a) Commercial use requesters. When OMB receives a request for 
documents for commercial use, it will assess charges that recover the 
full direct costs of searching for, reviewing for release, and 
duplicating the record sought. Commercial use requesters are not 
entitled to two hours of free search time nor 100 free pages of 
reproduction of documents. OMB may recover the cost of searching for and 
reviewing records even if there is ultimately no disclosure of records 
(see Sec.  1303.93(b)).
    (b) Educational and non-commercial scientific institution 
requesters. OMB will provide documents to requesters in this category 
for the cost of reproduction alone, excluding charges for the first 100 
pages. To be eligible for inclusion in this category, a requester must 
meet the criteria in Sec.  1303.90(g) or (h). OMB may seek evidence from 
the requester that the request is in furtherance of scholarly research 
and will advise requesters of their placement in this category.
    (c) Requesters who are representatives of the news media. OMB will 
provide documents to requesters in this category for the cost of 
reproduction alone, excluding charges for the first 100 pages. To be 
eligible for inclusion in this category, a requester must meet the 
criteria in Sec.  [thinsp]1303.90(i) and (j) and not make the request 
for commercial use. A request for records supporting the news 
dissemination function of the requester is not a commercial use for this 
category.
    (d) All other requesters. OMB will charge requesters who do not fit 
into any of the categories above fees that recover the full reasonable 
direct cost of searching for and reproducing records that are responsive 
to the request, except that the first 100 pages of reproduction and the 
first two hours of search time will be furnished without charge. 
Moreover, requests for records about the requesters filed in OMB's 
systems of records will continue to be treated under the fee provisions 
of the Privacy Act of 1974, which permit fees only for reproduction.



Sec.  1303.93  Miscellaneous fee provisions.

    (a) Charging interest--notice and rate. OMB may begin assessing 
interest charges on an unpaid bill starting on the 31st day after OMB 
sends the bill. If OMB receives the fee within the thirty-day grace 
period, interest will not accrue on the paid portion of the bill, even 
if the payment is unprocessed. Interest will be at the rate prescribed 
in section 3717 of title 31 of the United States Code and will accrue 
from the date of the billing.
    (b) Charges for unsuccessful search. OMB may properly charge for 
time spent searching even if it does not locate any responsive records 
or if OMB determines that the records are entirely exempt from 
disclosure.
    (c) Aggregating requests. When OMB reasonably believes that a 
requester, or

[[Page 134]]

a group of requestors acting in concert, is attempting to divide a 
single request into a series of requests for the purpose of avoiding 
fees, OMB may aggregate those requests and charge fees accordingly. OMB 
may presume that multiple requests of this type made within a 30-day 
period have been made in order to avoid fees. For requests separated by 
a longer period, OMB will aggregate them only where there is a 
reasonable basis for determining that aggregation is warranted in view 
of all the circumstances involved. Multiple requests involving unrelated 
matters shall not be aggregated.
    (d) Advance payments. (1) OMB will not require a requester to make 
an advance payment, i.e., payment before work is commenced or continued 
on a request, unless OMB estimates or determines that allowable charges 
that a requester may be required to pay are likely to exceed $250 or the 
requester has previously failed to make payments due within 30 days of 
billing.
    (2) In cases in which OMB requires advance payment, the request will 
not be considered received and further work will not be completed until 
the required payment is received. If the requester does not pay the 
advance payment within 30 calendar days after the date of OMB's fee 
determination, the request will be closed.
    (e) Effect of the Debt Collection Act of 1982 (Pub. L. 97-365). OMB 
will comply with applicable provisions of the Debt Collection Act, 
including disclosure to consumer reporting agencies and use of 
collection agencies, where appropriate, to encourage repayment.



Sec.  1303.94  Waiver or reduction of charges.

    (a) How to apply for a fee waiver. Requesters may seek a waiver of 
fees by submitting a written application demonstrating how disclosure of 
the requested information is in the public interest because it is likely 
to contribute significantly to public understanding of the operations or 
activities of the government and is not primarily in the commercial 
interest of the requester.
    (b) Factors for approving fee waivers. OMB will furnish records 
responsive to a request without charge or at a reduced rate when it 
determines, based on all available information, that the following 
factors are satisfied:
    (1) Disclosure of the requested information would shed light on the 
operations or activities of the government. The subject of the request 
must concern identifiable operations or activities of the Federal 
Government with a connection that is direct and clear, not remote or 
attenuated.
    (2) Disclosure of the requested information is likely to contribute 
significantly to public understanding of those operations or activities. 
This factor is satisfied when both of the following criteria are met:
    (i) Disclosure of the requested records must be meaningfully 
informative about government operations or activities. The disclosure of 
information that already is in the public domain, in either the same or 
a substantially identical form, would not be meaningfully informative if 
nothing new would be added to the public's understanding.
    (ii) The disclosure must contribute to the understanding of a 
reasonably broad audience of persons interested in the subject, as 
opposed to the individual understanding of the requester. A requester's 
expertise in the subject area as well as the requester's ability and 
intention to effectively convey information to the public must be 
considered. OMB will presume that a representative of the news media 
will satisfy this consideration.
    (3) The disclosure must not be primarily in the commercial interest 
of the requester. To determine whether disclosure of the requested 
information is primarily in the commercial interest of the requester, 
OMB will consider the following criteria:
    (i) OMB will identify whether the requester has any commercial 
interest that would be furthered by the requested disclosure. A 
commercial interest includes any commercial, trade, or profit interest. 
Requesters must be given an opportunity to provide explanatory 
information regarding this consideration.
    (ii) If there is an identified commercial interest, OMB must 
determine whether that is the primary interest furthered by the request. 
A waiver or reduction of fees is justified when the

[[Page 135]]

requirements of paragraphs (b)(1) and (2) of this section are satisfied 
and any commercial interest is not the primary interest furthered by the 
request. OMB ordinarily will presume that when a news media requester 
has satisfied the requirements of paragraphs (b)(1) and (2) of this 
section, the request is not primarily in the commercial interest of the 
requester. Disclosure to data brokers or others who merely compile and 
market government information for direct economic return will not be 
presumed to primarily serve the public interest.
    (c) Timing of requests for fee waivers. Requests for a waiver or 
reduction of fees should be made when the request is first submitted to 
OMB and should address the criteria referenced above. A requester may 
submit a fee waiver request at a later time so long as the underlying 
record request is pending or on administrative appeal. When a requester 
who has committed to pay fees subsequently asks for a waiver of those 
fees and that waiver is denied, the requester shall be required to pay 
any costs incurred up to the date the fee waiver request was received.



PART 1304_POST EMPLOYMENT CONFLICT OF INTEREST--Table of Contents



Sec.
1304.4601 Purpose.
1304.4604 Definitions.
1304.4605 Post-employment restrictions.
1304.4606 Exemptions.
1304.4607 Advice to former Government employees.
1304.4608 Administrative Enforcement Procedures (18 U.S.C. 207(j); 5 CFR 
          737.27).

    Authority: Title V, Section 501(a), Pub. L. 95-521, as amended, 92 
Stat. 1864; and Sections 1 and 2, Pub. L. 96-28, 93 Stat. 76 [18 U.S.C. 
207]; 5 CFR 737.

    Source: 45 FR 84007, Dec. 22, 1980, unless otherwise noted.



Sec.  1304.4601  Purpose.

    (a) This section sets forth OMB's policy and procedures under the 
Ethics in Government Act of 1978, 18 U.S.C. 207, and the Office of 
Personnel Management's implementing regulations, 5 CFR part 737, for 
determining violations of restrictions on post-employment activities and 
for exercising OMB's administrative enforcement authority.
    (b) These regulations bar certain acts by former Government 
employees which may reasonably give the appearance of making unfair use 
of prior Government employment and affiliations. OMB acts on the premise 
that it has the primary responsibility for the enforcement of 
restrictions on post-employment activities and that criminal enforcement 
by the Department of Justice should be undertaken only in cases 
involving aggravated circumstances.
    (c) These regulations do not incorporate possible additional 
restrictions contained in a professional code of conduct to which an 
employee may also be subject.
    (d) Any person who holds a Government position after June 30, 1979, 
is subject to the restrictions under this section; except that the new 
provisions applicable to Senior employees designated by the Director of 
the Office of Government Ethics are effective February 28, 1980.



Sec.  1304.4604  Definitions.

    (a) Government Employee includes any officer or employee of the 
Executive Branch, those appointed or detailed under 5 U.S.C. 3374, and 
Special Government Employees. It does not include an individual 
performing services for the United States as an independent contractor 
under a personal service contract.
    (b) Former Government Employee means one who was, and no longer is, 
a Government employee.
    (c) Special Government Employee means an officer or employee of an 
agency who is retained, designated, appointed, or employed to perform 
temporary duties on a full-time or intermittent basis for not more than 
130 days during any period of 365 consecutive days. This applies whether 
the Special Government Employee is compensated or not.
    (d) Senior Employee means an employee or officer as designated in 
the statute or by the Director of the Office of Government Ethics. The 
Director of the Office of Government Ethics has designated civilians who 
have significant decision-making or supervisory

[[Page 136]]

responsibility and are paid at or equivalent to GS-17 or above as Senior 
Employees. Civilians paid at the Executive level are automatically 
designated by statute as Senior Employees. (A list of Senior Employee 
positions is found at 5 CFR 737.33.)



Sec.  1304.4605  Post-employment restrictions.

    (a) General Restrictions Applicable to All Former Government 
Employees:
    (1) Permanent Bar. A former Government employee is restricted from 
acting as a representative before an agency as to a particular matter 
involving a specific party if the employee participated personally and 
substantially in that matter as a Government employee. The government 
employee is also restricted from making any oral or written 
communication to an agency with the intent to influence on behalf of 
another person as to a particular matter involving a specific party if 
the former Government employee participated personally and substantially 
in that matter as a Government employee.
    (2) Two-Year Bar. (i) A former Government employee is restricted for 
two years from acting as a representative before an agency as to a 
particular matter involving a specific party if the employee had 
official responsibility for that matter. The former Government employee 
is also restricted for two years from making any oral or written 
communication to any agency with the intent to influence on behalf of 
another person as to a particular matter involving a specific party if 
the employee had official responsibility for that matter.
    (ii) In order to be a matter for which the former Government 
employee had official responsibility, the matter must actually have been 
pending under the employee's responsibility within the period of one 
year prior to the termination of such responsibility.
    (iii) The statutory two-year restriction period is measured from the 
date when the employee's responsibility for a particular matter ends, 
not from the termination of Government service.
    (b) Restrictions Applicable Only to Former Senior Employees:
    (1) Two-Year Bar on Assisting in Representing. (i) A former Senior 
Employee is restricted for two years from assisting in representing 
another person by personal appearance before an agency as to a 
particular matter involving a specific party if the former Senior 
Employee participated personally and substantially in that matter as a 
Government employee.
    (ii) The statutory two-year period is measured from the date of 
termination of employment in the position that was held by the Senior 
Employee when he participated personally and substantially in the matter 
involved.
    (2) One-Year Bar on Attempts to Influence Former Agency. (i) A 
former Senior Employee is restricted for one year from any transactions 
with the former agency on a particular matter with the intent to 
influence the agency, regardless of the former Senior Employee's prior 
involvement in that matter.
    (ii) This restriction is aimed at the possible use of personal 
influence based on past Government affiliations in order to facilitate 
transaction of business. Therefore, it includes matters which first 
arise after a Senior Employee leaves Government service.
    (iii) The restriction applies whether the former Senior Employee is 
representing another or representing himself, either by appearance 
before an agency or through communication with that agency.
    (c) OFPP is a separate agency for purposes of the foregoing 
restrictions on post-employment activities.



Sec.  1304.4606  Exemptions.

    (a) General. (1) Communications made solely to furnish scientific or 
technological information are exempt from these prohibitions.
    (2) A former Government employee may be exempted from the 
restrictions on post-employment practices if the Deputy Director of OMB, 
in consultation with the Director of the Office of Government Ethics, 
executes a certification that is published in the Federal Register. The 
certification shall state that the former Government employee has 
outstanding qualifications in a scientific, technological or other 
technical discipline; is acting with respect to a particular matter 
which requires

[[Page 137]]

such qualifications; and the national interest would be served by his 
participation.
    (b) Specific. The one-year bar shall not apply to a former Senior 
Employee's representation on new matters if the former Senior Employee 
is:
    (1) An elected State or local government official, who is acting on 
behalf of such government; or
    (2) Regularly employed by or acting on behalf of an agency or 
instrumentality of a State or local government; an accredited, degree-
granting institution of higher education; or a non-profit hospital or 
medical research organization.



Sec.  1304.4607  Advice to former Government employees.

    The Office of General Counsel, OMB, has the responsibility for 
providing assistance promptly to former Government employees who seek 
advice on specific problems.



Sec.  1304.4608  Administrative Enforcement Procedures 
(18 U.S.C. 207(j); 5 CFR 737.27).

    (a) Whenever an allegation is made that a former Government employee 
has violated 18 U.S.C. 207(a), (b) or (c) or any of the regulations 
promulgated thereunder by the Office of Government Ethics or by OMB, the 
allegation and any supporting evidence shall be transmitted through the 
Office of General Counsel to the Deputy Director, OMB.
    (b) Allegations and evidence shall be safeguarded so as to protect 
the privacy of former employees prior to a determination of sufficient 
cause to initiate an administrative disciplinary proceeding.
    (c) If review by the Office of General Counsel, OMB, shows that the 
information concerning a possible violation does not appear to be 
frivolous, the Deputy Director, OMB, shall expeditiously provide all 
relevant evidence, any appropriate comments, and copies of applicable 
agency regulations to the director, Office of Government Ethics, and to 
the Criminal Division, Department of Justice. Unless the Department of 
Justice informs OMB that it does not intend to initiate criminal 
prosecution, OMB shall coordinate any investigation or administrative 
action with the Department of Justice in order to avoid prejudicing 
criminal proceedings.
    (d) After appropriate review and recommendation by the Office of 
General Counsel, if the Deputy Director, OMB, determines that there is 
reasonable cause to believe that there has been a violation, the Deputy 
Director may direct the Office of General Counsel to initiate an 
administrative disciplinary proceeding and may designate an individual 
to represent OMB in the proceeding.
    (e) Notice. The Office of General Counsel shall provide the former 
Government employee with adequate notice of its intention to institute a 
proceeding and with an opportunity for a hearing. The notice must 
include a statement of allegations, and the basis thereof, in sufficient 
detail to enable the former Government employee to prepare an adequate 
defense; notification of the right to a hearing; and an explanation of 
the method by which a hearing may be requested.
    (f) Hearing. A hearing may be obtained by submitting a written 
request to the Office of General Counsel.
    (g) Examiner. The presiding official at the proceedings shall be the 
hearing examiner, who is delegated authority by the Director, OMB, to 
make an initial decision. The hearing examiner shall be an attorney in 
the Office of General Counsel designated by the General Counsel. The 
hearing examiner shall be impartial and shall not have participated in 
any manner in the decision to initiate the proceedings.
    (h) Time, date and place. The hearing shall be conducted at a 
reasonable time, date, and place. The hearing examiner shall give due 
regard in setting the hearing date to the former Government employee's 
need for adequate time to properly prepare a defense and for an 
expeditious resolution of allegations that may be damaging to his 
reputation.
    (i) Hearing rights. The hearing shall include, as a minimum, the 
right to represent oneself or to be represented by counsel; the right to 
introduce and examine witnesses and to submit physical evidence; the 
right to confront and cross-examine adverse witnesses; the

[[Page 138]]

right to present oral argument; and, on request, the right to have a 
transcript or recording of the proceedings.
    (j) Burden of proof. OMB has the burden of proof and must establish 
substantial evidence of a violation.
    (k) Decision. The hearing examiner shall make a decision based 
exclusively on matters of record in the proceedings. All findings of 
fact and conclusions of law relevant to the matters at issue shall be 
set forth in the decision.
    (l) Appeal within OMB. Within 30 days of the date of the hearing 
examiner's decision, either party may appeal the decision to the 
Director. The Director shall make a decision on the appeal based solely 
on the record of the proceedings or on those portions of the record 
agreed to by the parties to limit the issues. If the Director modifies 
or reverses the hearing examiner's decision, he shall specify the 
findings of fact and conclusions of law that are different from those of 
the hearing examiner.
    (m) Administrative sanctions. Administrative sanctions may be taken 
if the former Government employee fails to request a hearing after 
receipt of adequate notice or if a final administrative determination of 
a violation of 18 U.S.C. 207 (a), (b) or (c) or regulations promulgated 
thereunder has been made. The Director may prohibit the former 
Government employee from appearance or communication with OMB on behalf 
of another for a period not to exceed five years (5 CFR 737.27(a)(9)(i)) 
or take other appropriate disciplinary action (5 CFR 737.27(a)(9)(ii)).
    (n) Judicial review. Any person found by an OMB administrative 
decision to have participated in a violation of 18 U.S.C. 207 (a), (b) 
or (c) or regulations promulgated thereunder may seek judicial review of 
the administrative decision.



PART 1305_RELEASE OF OFFICIAL INFORMATION, AND TESTIMONY 
BY OMB PERSONNEL AS WITNESSES, IN LITIGATION--Table of Contents



Sec.
1305.1 Purpose and scope.
1305.2 Production prohibited unless approved.
1305.3 Procedures in the event of a demand for disclosure.
1305.4 Procedure in the event of an adverse ruling.
1305.5 No private right of action.

    Authority: 31 U.S.C. 502.

    Source: 62 FR 29285, May 30, 1997, unless otherwise noted.



Sec.  1305.1  Purpose and scope.

    This part contains the regulations of the Office of Management and 
Budget (OMB) concerning procedures to be followed when, in litigation 
(including administrative proceedings), a subpoena, order or other 
demand (hereinafter in this part referred to as a ``demand'') of a court 
or other authority is issued for the production or disclosure of:
    (a) Any material contained in the files of OMB;
    (b) Any information relating to materials contained in the files of 
OMB; or
    (c) Any information or material acquired by any person while such 
person was an employee of OMB as a part of the performance of the 
person's official duties or because of the person's official status.



Sec.  1305.2  Production prohibited unless approved.

    No employee or former employee of OMB shall, in response to a demand 
of a court or other authority, produce any material contained in the 
files of OMB, disclose any information relating to materials contained 
in the files of OMB, or disclose any information or produce any material 
acquired as part of the performance of the person's official duties, or 
because of the person's official status, without the prior approval of 
the General Counsel.



Sec.  1305.3  Procedures in the event of a demand for disclosure.

    (a) Whenever a demand is made upon an employee or former employee of 
OMB for the production of material or the disclosure of information 
described in Sec.  1305.2, he shall immediately notify the General 
Counsel. If possible, the General Counsel shall be notified before the 
employee or former employee concerned replies to or appears before the 
court or other authority.

[[Page 139]]

    (b) If information or material is sought by a demand in any case or 
matter in which OMB is not a party, an affidavit (or, if that is not 
feasible, a statement by the party seeking the information or material, 
or by his attorney) setting forth a summary of the information or 
material sought and its relevance to the proceeding, must be submitted 
before a decision is made as to whether materials will be produced or 
permission to testify or otherwise provide information will be granted. 
Any authorization for testimony by a present or former employee of OMB 
shall be limited to the scope of the demand as summarized in such 
statement.
    (c) If response to a demand is required before instructions from the 
General Counsel are received, an attorney designated for that purpose by 
OMB shall appear, and shall furnish the court or other authority with a 
copy of the regulations contained in this part and inform the court or 
other authority that the demand has been or is being, as the case may 
be, referred for prompt consideration by the General Counsel. The court 
or other authority shall be requested respectfully to stay the demand 
pending receipt of the requested instructions from the General Counsel.

(Approved by the Office of Management and Budget under control number 
0348-0056)



Sec.  1305.4  Procedure in the event of an adverse ruling.

    If the court or other authority declines to stay the effect of the 
demand in response to a request made in accordance with Sec.  1305.3(c) 
pending receipt of instructions from the General Counsel, or if the 
court or other authority rules that the demand must be complied with 
irrespective of the instructions from the General Counsel not to produce 
the material or disclose the information sought, the employee or former 
employee upon whom the demand has been made shall respectfully decline 
to comply with the demand (United States ex rel. Touhy v. Ragen, 340 
U.S. 462 (1951)).

(Approved by the Office of Management and Budget under control number 
0348-0056)



Sec.  1305.5  No private right of action.

    This part is intended only to provide guidance for the internal 
operations of OMB, and is not intended to, and does not, and may not be 
relied upon to create a right or benefit, substantive or procedural, 
enforceable at law by a party against the United States.

[[Page 140]]



                       SUBCHAPTER B_OMB DIRECTIVES





PART 1310_OMB CIRCULARS--Table of Contents



Sec.
1310.1 Policy guidelines.
1310.3 Availability of circulars.
1310.5 List of current circulars.

    Authority: 31 U.S.C. 501-06.

    Source: 63 FR 70311, Dec. 21, 1998, unless otherwise noted.



Sec.  1310.1  Policy guidelines.

    In carrying out its responsibilities, the Office of Management and 
Budget issues policy guidelines to Federal agencies to promote 
efficiency and uniformity in Government activities. These guidelines are 
normally in the form of circulars.



Sec.  1310.3  Availability of circulars.

    Copies of individual circulars are available at OMB's Internet home 
page; you may access them at http://www.whitehouse.gov/WH/EOP/omb. 
Copies are also available from the EOP Publications Office, 725 17th 
Street NW., Room 2200, Washington, DC 20503; (202) 395-7332. Selected 
circulars are also available through fax-on-demand, by calling (202) 
395-9068.



Sec.  1310.5  List of current circulars.

    The following list includes all circulars in effect as of December 
1, 1998.

No. and Title
A-1--``System of Circulars and Bulletins to Executive Departments and 
Establishments''
A-11--``Preparation and Submission of Budget Estimates'' (Part 1)
    ``Preparation and Submission of Strategic Plans and Annual 
Performance Plans'' (Part 2)
    ``Planning, Budgeting, and Acquisition of Capital Assets'' (Part 3)
    ``Capital Programming Guide'' (Supplement to Part 3)
A-16--``Coordination of Surveying, Mapping, and Related Spatial Data 
Activities''
A-19--``Legislative Coordination and Clearance''
A-21--``Cost Principles for Educational Institutions''
A-25--``User Charges''
A-34--``Instructions on Budget Execution''
A-45--``Rental and Construction of Government Quarters''
A-50--``Audit Followup''
A-76--``Performance of Commercial Activities''
A-87--``Cost Principles for State, Local, and Indian Tribal 
Governments''
A-89--``Federal Domestic Assistance Program Information''
A-94--``Guidelines and Discount Rates for Benefit-Cost Analysis of 
Federal Programs''
A-97--``Rules and regulations permitting Federal agencies to provide 
specialized or technical services to State and local units of government 
under Title III of the Intergovernmental Cooperation Act of 1968''
A-102--``Grants and Cooperative Agreements With State and Local 
Governments''
A-109--``Major System Acquisitions''
A-110--``Uniform Administrative Requirements for Grants and Agreements 
with Institutions of Higher Education, Hospitals, and Other Non-Profit 
Organizations''
A-119--``Federal Participation in the Development and Use of Voluntary 
Consensus Standards and in Conformity Assessment Activities''
A-122--``Cost Principles for Non-Profit Organizations''
A-123--``Management Accountability and Control''
A-125--``Prompt Payment''
A-126--``Improving the Management and Use of Government Aircraft''
A-127--``Financial Management Systems''
A-129--``Policies for Federal Credit Programs and Non-Tax Receivables ``
A-130--``Management of Federal Information Resources''
A-131--``Value Engineering''
A-133--``Audits of States, Local Governments, and Non-Profit 
Organizations''
A-134--``Financial Accounting Principles and Standards''

[[Page 141]]

A-135--``Management of Federal Advisory Committees''



PART 1312_CLASSIFICATION, DOWNGRADING, DECLASSIFICATION AND SAFEGUARDING 
OF NATIONAL SECURITY INFORMATION--Table of Contents



   Subpart A_Classification and Declassification of National Security 
                               Information

Sec.
1312.1 Purpose and authority.
1312.2 Responsibilities.
1312.3 Classification requirements.
1312.4 Classified designations.
1312.5 Authority to classify
1312.6 Duration of classification.
1312.7 Derivative classification.
1312.8 Standard identification and markings.
1312.9 Downgrading and declassification.
1312.10 Systematic review guidelines.
1312.11 Challenges to classifications.
1312.12 Security Program Review Committee.

     Subpart B_Control and Accountability of Classified Information

1312.21 Purpose and authority.
1312.22 Responsibilities.
1312.23 Access to classified information.
1312.24 Access by historical researchers and former Presidential 
          appointees.
1312.25 Storage.
1312.26 Control of secret and confidential material.
1312.27 Top secret control.
1312.28 Transmission of classified material.
1312.29 Destruction.
1312.30 Loss or possible compromise.
1312.31 Security violations.

               Subpart C_Mandatory Declassification Review

1312.32 Purpose and authority.
1312.33 Responsibility.
1312.34 Information in the custody of OMB.
1312.35 Information classified by another agency.
1312.36 Appeal procedure.
1312.37 Fees.

    Authority: Executive Order 12958, April 20, 1995, 3 CFR, 1995 Comp., 
p. 333.

    Source: 62 FR 25426, May 9, 1997, unless otherwise noted.



   Subpart A_Classification and Declassification of National Security 
                               Information



Sec.  1312.1  Purpose and authority.

    This subpart sets forth the procedures for the classification and 
declassification of national security information in the possession of 
the Office of Management and Budget. It is issued under the authority of 
Executive Order 12958, (60 FR 19825, 3 CFR, 1995 Comp., P.333), as 
implemented by Information Security Oversight Office Directive No. 1 (32 
CFR part 2001), and is applicable to all OMB employees.



Sec.  1312.2  Responsibilities.

    The effectiveness of the classification and declassification program 
in OMB depends entirely on the amount of attention paid to it by 
supervisors and their staffs in those offices and divisions that possess 
or produce classified material. Officials who originate classified 
information are responsible for proper assignment of a classification to 
that material and for the decision as to its declassification. Officials 
who produce documents containing classified information must determine 
the source of the classification for that information and must ensure 
that the proper identity of that source is shown on the document. 
Custodians of classified material are responsible for its safekeeping 
and for ensuring that such material is adequately marked as to current 
classification. Custodians are also responsible for the control of and 
accounting for all classified material within their area of jurisdiction 
as prescribed in OMB Manual Section 1030.
    (a) EOP Security Officer. In cooperation with the Associate Director 
(or Assistant Director) for Administration, the EOP Security Officer 
supervises the administration of this section and develops programs to 
assist in the compliance with the Order. Specifically, he:
    (1) Promotes the correct understanding of this section by all 
employees by providing annual security refresher briefings and ensures 
that new employees attend initial briefings about overall security 
procedures and policies.

[[Page 142]]

    (2) Issues and keeps current such classification guides and 
guidelines for review for declassification as are required by the Order.
    (3) Conducts periodic reviews of classified documents produced and 
provides assistance and guidance where necessary.
    (4) Maintains and publishes a current listing of all officials who 
have been designated in writing to have Top Secret, Secret, and 
Confidential original classification authority.
    (b) Heads of divisions or offices. The head of each division or 
major organizational unit is responsible for the administration of this 
section within his or her area. Appropriate internal guidance should be 
issued to cover special or unusual conditions within an office.



Sec.  1312.3  Classification requirements.

    United States citizens must be kept informed about the activities of 
their Government. However, in the interest of national security, certain 
official information must be subject to constraints on its dissemination 
or release. This information is classified in order to provide that 
protection.
    (a) Information shall be considered for classification if it 
concerns:
    (1) Military plans, weapons systems, or operations;
    (2) Foreign government information;
    (3) Intelligence activities (including special activities), 
intelligence sources or methods, or cryptology;
    (4) Foreign relations or foreign activities of the United States, 
including confidential sources;
    (5) Scientific, technological, or economic matters relating to the 
national security;
    (6) United States Government programs for safeguarding nuclear 
materials or facilities; or
    (7) Vulnerabilities or capabilities of systems, installations, 
projects or plans relating to the national security.
    (b) When information is determined to meet one or more of the 
criteria in paragraph (a) of this section, it shall be classified by an 
original classification authority when he/she determines that its 
unauthorized disclosure reasonably could be expected to cause at least 
identifiable damage to the national security.
    (c) Unauthorized disclosure of foreign government information, 
including the identity of a confidential foreign source of intelligence 
sources or methods, is presumed to cause damage to the national 
security.
    (d) Information classified in accordance with this section shall not 
be declassified automatically as a result of any unofficial or 
inadvertent or unauthorized disclosure in the United States or abroad of 
identical or similar information.



Sec.  1312.4  Classified designations.

    (a) Except as provided by the Atomic Energy Act of 1954, as amended, 
(42 U.S.C. 2011) or the National Security Act of 1947, as amended, (50 
U.S.C. 401) Executive Order 12958 provides the only basis for 
classifying information. Information which meets the test for 
classification may be classified in one of the following three 
designations:
    (1) Top Secret. This classification shall be applied only to 
information the unauthorized disclosure of which reasonably could be 
expected to cause exceptionally grave damage to the national security 
that the original classification authority is able to identify or 
describe.
    (2) Secret. This classification shall be applied only to information 
the unauthorized disclosure of which reasonably could be expected to 
cause serious damage to the national security that the original 
classification authority is able to identify or describe.
    (3) Confidential. This classification shall be applied only to 
information the unauthorized disclosure of which reasonably could be 
expected to cause damage to the national security that the original 
classification authority is able to identify or describe.
    (b) If there is significant doubt about the need to classify 
information, it shall not be classified. If there is significant doubt 
about the appropriate level of classification, it shall be classified at 
the lower level.



Sec.  1312.5  Authority to classify.

    (a) The authority to originally classify information or material 
under this part shall be limited to those officials

[[Page 143]]

concerned with matters of national security. The officials listed in 
this section are granted authority by the Director, OMB, to assign 
original classifications as indicated to information or material that is 
originated by OMB staff and relating to the national security of the 
United States:
    (1) Top Secret and below:
    (i) Deputy Director.
    (ii) Deputy Director for Management.
    (iii) Associate Director for National Security and International 
Affairs.
    (iv) Associate Director for Natural Resources, Energy and Science.
    (2) Secret and below:
    (i) Deputy Associate Director for National Security.
    (ii) Deputy Associate Director for International Affairs.
    (iii) Deputy Associate Director for Energy and Science.
    (b) Classification authority is not delegated to persons who only 
reproduce, extract, or summarize classified information, or who only 
apply classification markings derived from source material or from a 
classification guide.



Sec.  1312.6  Duration of classification.

    (a)(1) When determining the duration of classification for 
information originally classified under Executive Order 12958, an 
original classification authority shall follow the following sequence:
    (i) He/She shall attempt to determine a date or event that is less 
than 10 years from the date of original classification, and which 
coincides with the lapse of the information's national security 
sensitivity, and shall assign such date or event as the declassification 
instruction;
    (ii) If unable to determine a date or event of less than 10 years, 
he/she shall ordinarily assign a declassification date that is 10 years 
from the date of the original classification decision;
    (iii) He/She may extend the duration of classification or reclassify 
specific information for a period not to exceed 10 additional years if 
such action is consistent with the exemptions as outlined in Section 
1.6(d) of the Executive Order. This provision does not apply to 
information contained in records that are more than 25 years old and 
have been determined to have permanent historical value under Title 44 
United States Code.
    (iv) He/She may exempt from declassification within 10 years 
specific information, which is consistent with the exemptions as 
outlined in Section 1.6 (d) of the Executive Order.
    (2) Extending Duration of Classification. Extensions of 
classification are not automatic. If an original classification 
authority with jurisdiction over the information does not extend the 
date or event for declassification, the information is automatically 
declassified upon the occurrence of the date or event. If an original 
classification authority has assigned a date or event for 
declassification that is 10 years or less from the date of 
classification, an original classification authority with jurisdiction 
over the information may extend the classification duration of such 
information for additional periods not to exceed 10 years at a time. 
Records determined to be of historical value may not exceed the duration 
of 25 years.
    (b) When extending the duration of classification, the original 
classification authority must:
    (1) Be an original classification authority with jurisdiction over 
the information.
    (2) Ensure that the information continues to meet the standards for 
classification under the Executive Order.
    (3) Make reasonable attempts to notify all known holders of the 
information. Information classified under prior orders marked with a 
specific date or event for declassification is automatically 
declassified upon that date or event. Information classified under prior 
orders marked with Originating Agency's Determination Required (OADR) 
shall:
    (i) Be declassified by a declassification authority as defined in 
Section 3.1 of the Executive Order.
    (ii) Be re-marked by an authorized original classification authority 
with jurisdiction over the information to establish a duration of 
classification consistent with the Executive Order.
    (iii) Be subject to Section 3.4 of the Executive Order if the 
records are determined to be of historical value and are to remain 
classified for 25 years

[[Page 144]]

from the date of its original classification.



Sec.  1312.7  Derivative classification.

    A derivative classification means that the information is in 
substance the same information that is currently classified, usually by 
another agency or classification authority. The application of 
derivative classification markings is the responsibility of the person 
who incorporates, restates, paraphrases, or generates in new form 
information that is already classified, or one who applies such 
classification markings in accordance with instructions from an 
authorized classifier or classification guide. Extreme care must be 
taken to continue classification and declassification markings when such 
information is incorporated into OMB documents. The duplication or 
reproduction of existing classified information is not derivative 
classification. Persons who use derivative classification need not 
possess original classification authority.



Sec.  1312.8  Standard identification and markings.

    (a) Original classification. At the time classified material is 
produced, the classifier shall apply the following markings on the face 
of each originally classified document, including electronic media:
    (1) Classification authority. The name/personal identifier, and 
position title of the original classifier shall appear on the 
``Classified By'' line.
    (2) Agency and office of origin. If not otherwise evident, the 
agency and office of origin shall be identified and placed below the 
name on the ``Classified By'' line.
    (3) Reasons for classification. Identify the reason(s) to classify. 
The classifier shall include, at a minimum, a brief reference to the 
pertinent classification category(ies), or the number 1.5 plus the 
letter(s) that corresponds to that classification category in Section 
1.5 of the Executive Order.
    (4) Declassification instructions. These instructions shall indicate 
the following:
    (i) The duration of the original classification decision shall be 
placed on the ``Declassify On'' line.
    (ii) The date or event for declassification that corresponds to the 
lapse of the information's national security sensitivity, which may not 
exceed 10 years from the date of the original decision.
    (iii) When a specific date or event within 10 years cannot be 
established, the classifier will apply the date that is 10 years from 
the date of the original decision.
    (iv) The exemption category from declassification. Upon 
determination that the information must remain classified beyond 10 
years, the classifier will apply the letter ``X'' plus a brief 
recitation of the exemption category(ies), or the letter ``X'' plus the 
number that corresponds to the exemption category(ies) in Section 1.6(d) 
of the Executive Order.
    (v) An original classification authority may extend the duration of 
classification for successive periods not to exceed 10 years at a time. 
The ``Declassify On'' line shall be revised to include the new 
declassification instructions and shall include the identity of the 
person authorizing the extension and the date of the action.
    (vi) Information exempted from automatic declassification at 25 
years should on the ``Declassify On'' line be revised to include the 
symbol ``25X'' plus a brief reference to the pertinent exemption 
categories/numbers of the Executive Order.
    (5) The overall classification of the document is the highest level 
of information in the document and will be conspicuously placed stamped 
at the top and bottom of the outside front and back cover, on the title 
page, and on the first page.
    (6) The highest classification of individual pages will be stamped 
at the top and bottom of each page, to include ``unclassified'' when it 
is applicable.
    (7) The classification of individual portions of the document, 
(ordinarily a paragraph, but including subjects, titles, graphics) shall 
be marked by using the abbreviations (TS), (S), (C), or (U), will be 
typed or marked at the beginning or end of each paragraph or section of 
the document. If all portions of the document are classified at the same 
level, this may be indicated by a statement to that effect.

[[Page 145]]

    (b) Derivative classification. Information classified derivatively 
on the basis of source documents shall carry the following markings on 
those documents:
    (1) The derivative classifier shall concisely identify the source 
document(s) or the classification guide on the ``Derived From'' line, 
including the agency and where available the office of origin and the 
date of the source or guide. When a document is classified derivatively 
on the basis of more than one source document or classification guide, 
the ``Derived From'' line shall appear as ``Derived From: Multiple 
Sources''.
    (2) The derivative classifier shall maintain the identification of 
each source with the file or record copy of the derivatively classified 
document. Where practicable the copies of the document should also have 
this list attached.
    (3) A document derivatively classified on the basis of a source 
document that is itself marked ``Multiple Sources'' shall cite the 
source document on its ``Derived From'' line rather than the term 
``Multiple Sources''.
    (4) The reason for the original classification decision, as 
reflected in the source document, is not required to be transferred in a 
derivative classification action.
    (5) Declassification instructions shall carry forward the 
instructions on the ``Declassify On'' line from the source document to 
the derivation document or the duration instruction from the 
classification guide. Where there are multiple sources, the longest 
duration of any of its sources shall be used.
    (6) When a source document or classification guide contains the 
declassification instruction ``Originating Agency's Determination 
Required'' (OADR) the derivative document shall carry forward the fact 
that the source document(s) were so marked and the date of origin of the 
most recent source document (s).
    (7) The derivatively classified document shall be conspicuously 
marked with the highest level of classification of information.
    (8) Each portion of a derivatively classified document shall be 
marked in accordance with its source.
    (9) Each office shall, consistent with Section 3.8 of the Executive 
Order, establish and maintain a database of information that has been 
declassified.
    (c) Additional Requirements. (1) Markings other than ``Top Secret'', 
``Secret'', and ``Confidential'' shall not be used to identify 
classified national security information.
    (2) Transmittal documents will be stamped to indicate the highest 
classification of the information transmitted, and shall indicate 
conspicuously on its face the following or something similar 
``Unclassified When classified Enclosure Removed'' to indicate the 
classification of the transmittal document standing alone.
    (3) The classification data for material other than documents will 
be affixed by tagging, stamping, recording, or other means to insure 
that recipients are aware of the requirements for the protection of the 
material.
    (4) Documents containing foreign government information shall 
include the markings ``This Document Contains (country of origin) 
Information''. If the identity of the specific government must be 
concealed, the document shall be marked'' This Document Contains Foreign 
Government Information,'' and pertinent portions marked ``FGI'' together 
with the classification level, e.g., ``(FGI-C)''. In such cases, 
separate document identifying the government shall be maintained in 
order to facilitate future declassification actions.
    (5) Documents, regardless of medium, which are expected to be 
revised prior to the preparation of a finished product--working papers--
shall be dated when created, marked with highest classification, 
protected at that level, and destroyed when no longer needed. When any 
of the following conditions exist, the working papers shall be 
controlled and marked in the same manner as prescribed for a finished 
classified document:
    (i) Released by the originator outside the originating activity;
    (ii) Retained more than 180 days from the date of origin;
    (iii) Filed permanently.
    (6) Information contained in unmarked records, or Presidential or 
related materials, and which pertain to

[[Page 146]]

the national defense or foreign relations of the U.S. and has been 
maintained and protected as classified information under prior orders 
shall continue to be treated as classified information under the 
Executive Order and is subject to its provisions regarding 
declassification.



Sec.  1312.9  Downgrading and declassification.

    Classified information originated by OMB offices will be downgraded 
or declassified as soon as it no longer qualifies for continued 
protection under the provisions of the classification guides. Authority 
to downgrade or declassify OMB-originated information is granted to 
those authorized to classify (See Sec.  1312.5). Additionally, the 
Associate Director (or Assistant Director) for Administration is 
authorized to exercise downgrading and declassification actions up to 
and including the Top Secret level.
    (a) Transferred material. Information which was originated by an 
agency that no longer exists, or that was received by OMB in conjunction 
with a transfer of functions, is deemed to be OMB-originated material. 
Information which has been transferred to another agency for storage 
purposes remains the responsibility of OMB.
    (b) Periodic review of classified material. Each office possessing 
classified material will review that material on an annual basis or in 
conjunction with the transfer of files to non-current record storage and 
take action to downgrade or declassify all material no longer qualifying 
for continued protection at that level. All material transferred to non-
current record storage must be properly marked with correct downgrade 
and declassification instructions.



Sec.  1312.10  Systematic review guidelines.

    The EOP Security Officer will prepare and keep current such 
guidelines as are required by Executive Order 12958 for the downgrading 
and declassification of OMB material that is in the custody of the 
Archivist of the United States.



Sec.  1312.11  Challenges to classifications.

    OMB employees are encouraged to familiarize themselves with the 
provisions of Executive Order 12958 and with OMB Manual Sections 1010, 
1020, and 1030. Employees are also encouraged to question or to 
challenge those classifications they believe to be improper, 
unnecessary, or for an inappropriate time. Such questions or challenges 
may be addressed to the originator of the classification, unless the 
challenger desires to remain anonymous, in which case the question may 
be directed to the EOP Security Officer.



Sec.  1312.12  Security Program Review Committee.

    The Associate Director (or Assistant Director) for Administration 
will chair the OMB Security Program Review Committee, which will act on 
suggestions and complaints about the OMB security program.



     Subpart B_Control and Accountability of Classified Information



Sec.  1312.21  Purpose and authority.

    This subpart sets forth procedures for the receipt, storage, 
accountability, and transmission of classified information at the Office 
of Management and Budget. It is issued under the authority of Executive 
Order 12958, (60 FR 19825, 3 CFR, 1995 Comp., P.333), as implemented by 
Information Security Oversight Office Directive No 1 (32 CFR part 2001), 
and is applicable to all OMB employees.



Sec.  1312.22  Responsibilities.

    The effective direction by supervisors and the alert performance of 
duty by employees will do much to ensure the adequate security of 
classified information in the possession of OMB offices. Each employee 
has a responsibility to protect and account for all classified 
information that he/she knows of within his/her area of responsibility. 
Such information will be made available only to those persons who have 
an official need to know and who have been granted the appropriate 
security clearance. Particular care must be taken not to discuss 
classified information

[[Page 147]]

over unprotected communications circuits (to include intercom and 
closed-circuit TV), at non-official functions, or at any time that it 
might be revealed to unauthorized persons. Classified information may 
only be entered into computer systems meeting the appropriate security 
criteria.
    (a) EOP Security Officer. In cooperation with the Associate Director 
(or Assistant Director) for Administration, the EOP Security Officer 
supervises the administration of this section. Specifically, he/she:
    (1) Promotes the correct understanding of this section and insures 
that initial and annual briefings about security procedures are given to 
all new employees.
    (2) Provides for periodic inspections of office areas and reviews of 
produced documents to ensure full compliance with OMB regulations and 
procedures.
    (3) Takes prompt action to investigate alleged violations of 
security, and recommends appropriate administrative action with respect 
to violators.
    (4) Supervises the annual inventories of Top Secret material.
    (5) Ensures that containers used to store classified material meet 
the appropriate security standards and that combinations to security 
containers are changed as required.
    (b) Heads of Offices. The head of each division or office is 
responsible for the administration of this section in his/her area. 
These responsibilities include:
    (1) The appointment of accountability control clerks as prescribed 
in Sec.  1312.26.
    (2) The maintenance of the prescribed control and accountability 
records for classified information within the office.
    (3) Establishing internal procedures to ensure that classified 
material is properly safeguarded at all times.



Sec.  1312.23  Access to classified information.

    Classified information may be made available to a person only when 
the possessor of the information establishes that the person has a valid 
``need to know'' and the access is essential to the accomplishment of 
official government duties. The proposed recipient is eligible to 
receive classified information only after he/she has been granted a 
security clearance by the EOP Security Officer. Cover sheets will be 
used to protect classified documents from inadvertent disclosure while 
in use. An SF-703 will be used for Top Secret material; an SF-704 for 
Secret material, and an SF-705 for Confidential material. The cover 
sheet should be removed prior to placing the document in the files.



Sec.  1312.24  Access by historical researchers 
and former Presidential appointees.

    (a) The requirements of Section 4.2(a)(3) of Executive Order 12958 
may be waived for persons who are engaged in historical research 
projects, or who previously have occupied policy-making positions to 
which they were appointed by the President. Waivers may be granted only 
if the Associate Director (or Assistant Director) for Administration, in 
cooperation with the EOP Security Officer:
    (1) Determines in writing that access is consistent with the 
interest of national security;
    (2) Takes appropriate steps to protect classified information from 
unauthorized disclosure or compromise, and ensures that the information 
is safeguarded in a manner consistent with the order; and
    (3) Limits the access granted to former Presidential appointees to 
items that the person originated, reviewed, signed, or received while 
serving as a Presidential appointee.
    (b) In the instances described in paragraph (a) of this section, the 
Associate Director (or Assistant Director) for Administration, in 
cooperation with the EOP Security Officer, will make a determination as 
to the trustworthiness of the requestor and will obtain written 
agreement from the requestor to safeguard the information to which 
access is given. He/She will also obtain written consent to the review 
by OMB of notes and manuscripts for the purpose of determining that no 
classified information is contained therein. Upon the completion of 
these steps, the material to be researched will be reviewed

[[Page 148]]

by the division/office of primary interest to ensure that access is 
granted only to material over which OMB has classification jurisdiction.



Sec.  1312.25  Storage.

    All classified material in the possession of OMB will be stored in a 
GSA-approved container or in vault-type rooms approved for Top Secret 
storage. Under the direction of the EOP Security Officer, combinations 
to safes used in the storage of classified material will be changed when 
the equipment is placed in use, whenever a person knowing the 
combination no longer requires access to it, whenever the combination 
has been subjected to possible compromise, whenever the equipment is 
taken out of service, or at least once a year. Knowledge of combinations 
will be limited to the minimum number of persons necessary, and records 
of combinations will be assigned a classification no lower than the 
highest level of classified information stored in the equipment 
concerned. An SF-700, Security Container Information, will be used in 
recording safe combinations. Standard Form-702, Security Container check 
sheet, will be posted to each safe and will be used to record opening, 
closing, and checking the container whenever it is used.



Sec.  1312.26  Control of secret and confidential material.

    Classified material will be accounted for by the office having 
custody of the material. OMB Form 87, Classified Document Control, will 
be used to establish accountability controls on all Secret material 
received or produced within OMB offices. No accountability controls are 
prescribed for Confidential material, but offices desiring to control 
and account for such material should use the procedures applicable to 
Secret material. Information classified by another agency shall not be 
disclosed without that agency's authorization.
    (a) Accountability Control Clerks. Each division or office head will 
appoint one person as the Accountability Control Clerk (ACC). The ACC 
will be the focal point for the receipt, routing, accountability, 
dispatch, and declassification downgrading or destruction of all 
classified material in the possession of the office.
    (b) OMB Form 87. One copy of OMB Form 87 will be attached to the 
document, and one copy retained in the accountability control file for 
each active document within the area of responsibility of the ACC. 
Downgrading or destruction actions, or other actions removing the 
document from the responsibility of the ACC will be recorded on the OMB 
Form 87, and the form filed in an inactive file. Inactive control forms 
will be cut off annually, held for two additional years, then destroyed.
    (c) Working papers and drafts. Working papers and drafts of 
classified documents will be protected according to their security 
classification, but will not be subject to accountability control unless 
they are forwarded outside of OMB.
    (d) Typewriter ribbons. Typewriter ribbons, cassettes, and other 
devices used in the production of classified material will be removed 
from the machine after each use and protected as classified material not 
subject to controls. Destruction of such materials will be as prescribed 
in Sec.  1312.29.
    (e) Reproduction. Classified material will be reproduced only as 
required unless prohibited by the originator for the conduct of business 
and reproduced copies are subject to the same controls as are the 
original documents. Top Secret material will be reproduced only with the 
written permission of the originating agency.



Sec.  1312.27  Top secret control.

    The EOP Security Officer serves as the Top Secret Control Officer 
(TSCO) for OMB. He will be assisted by the Alternate TSCOs in each 
division/office Holding Top Secret material. The ATSCOs will be 
responsible for the accountability and custodianship of Top Secret 
material within their divisions/offices. The provisions of this section 
do not apply to special intelligence material, which will be processed 
as prescribed by the controlling agency.
    (a) Procedures. All Top Secret material produced or received in OMB 
will be taken to the appropriate ATSCO for receipting, establishment of 
custodianship, issuance to the appropriate action

[[Page 149]]

officer, and, as appropriate, obtaining a receipt. Top Secret material 
in the custody of the TSCO or ATSCO will normally be segregated from 
other classified material and will be stored in a safe under his or her 
control. Such material will be returned to the appropriate ATSCO by 
action officers as soon as action is completed. OMB Form 87 will be used 
to establish custody, record distribution, routing, receipting and 
destruction of Top Secret material. Top Secret Access Record and Cover 
Sheet (Standard Form 703) will be attached to each Top Secret document 
while it is in the possession of OMB.
    (b) Inventory. The Associate Director (or Assistant Director) for 
Administration will notify each appropriate OMB office to conduct an 
inventory of its Top Secret material by May 1 each year. The head of 
each office will notify the EOP Security Officer when the inventory has 
been satisfactorily completed. Each Top Secret item will be examined to 
determine whether it can be downgraded or declassified, and the 
inventory will be adjusted accordingly. Discrepancies in the inventory, 
indicating loss or possible compromise, will be thoroughly investigated 
by the EOP Security Officer or by the Federal Bureau of Investigation, 
as appropriate. Each ATSCO will retain his/her division's inventory in 
accordance with the security procedures set forth in this regulation.



Sec.  1312.28  Transmission of classified material.

    Prior to the transmission of classified material to offices outside 
OMB, such material will be enclosed in opaque inner and outer covers or 
envelopes. The inner cover will be sealed and marked with the 
classification, and the address of the sender and of the addressee. The 
receipt for the document, OMB Form 87, (not required for Confidential 
material) will be attached to or placed within the inner envelope to be 
signed by the recipient and returned to the sender. Receipts will 
identify the sender, the addressee, and the document, and will contain 
no classified information. The outer cover or envelope will be sealed 
and addressed with no identification of its contents.
    (a) Transmittal of Top Secret material. The transmittal of Top 
Secret material shall be by personnel specifically designated by the EOP 
Security Officer, or by Department of State diplomatic pouch, by a 
messenger-courier system specifically created for that purpose. 
Alternatively, it shall be taken to the White House Situation Room for 
transmission over secure communications circuits.
    (b) Transmittal of Secret material. The transmittal of Secret 
material shall be as follows:
    (1) Within and between the fifty States, the District of Columbia, 
and Puerto Rico: Use one of the authorized means for Top Secret 
material, or transmit by U.S. Postal Service express or registered mail.
    (2) Other Areas. Use the same means authorized for Top Secret, or 
transmit by U.S. registered mail through Military Postal Service 
facilities.
    (c) Transmittal of Confidential material. As identified in 
paragraphs (a) and (b) of this section, or transmit by U.S. Postal 
Service Certified, first class, or express mail service within and 
between the fifty States, the District of Columbia, and Puerto Rico.
    (d) Transmittal between OMB offices and within the EOP complex. 
Classified material will normally be hand carried within and between 
offices in the Executive Office of the President complex by cleared OMB 
employees. Documents so carried must be protected by the appropriate 
cover sheet or outer envelope. Top Secret material will always be hand 
carried in this manner. Secret and Confidential material may be 
transmitted between offices in the EOP complex by preparing the material 
as indicated above (double envelope) and forwarding it by special 
messenger service provided by the messenger center. The messenger shall 
be advised that the material is classified. Receipts shall be obtained 
if Top Secret or Secret material is being transmitted outside of OMB. 
Classified material will never be transmitted in the Standard Messenger 
Envelope (SF Form 65), or by the Mail Stop system.

[[Page 150]]



Sec.  1312.29  Destruction.

    The destruction of classified material will be accomplished under 
the direction of the TSCO or the appropriate ATSCO, who will assure that 
proper accountability records are kept. Classified official record 
material will be processed to the Information Systems and Technology, 
Records Management Office, Office of Administration, NEOB Room 5208, in 
accordance with OMB Manual Section 540. Classified nonrecord material 
will be destroyed as soon as it becomes excess to the needs of the 
office. The following destruction methods are authorized:
    (a) Shredding. Using the equipment approved for that purpose within 
OMB offices. Shredders will not accommodate typewriter ribbons or 
cassettes. Shredding is the only authorized means of Destroying Top 
Secret material.
    (b) Burn bag. Classified documents, cassettes, ribbons, and other 
materials at the Secret level or below, not suitable for shredding, may 
be destroyed by using burn bags, which can be obtained from the supply 
store. They will be disposed of as follows:
    (1) OEOB. Unless on an approved list for pick-up of burn bags, all 
other burn bags should be delivered to Room 096, OEOB between 8:00 a.m. 
and 4:30 p.m. Burn bags are not to be left in hallways.
    (2) NEOB. Hours for delivery of burn bag materials to the NEOB 
Loading Dock Shredder Room are Monday through Friday from 8:00 a.m. to 
9:30 a.m.; 10:00 a.m. to 11:00 a.m.; 11:45 a.m. to 1:30 p.m. and 2:00 
p.m. to 3:30 p.m. The phone number of the Shredder Room is 395-1593. In 
the event the Shredder Room is not manned, do not leave burn bags 
outside the Shredder Room as the security of that material may be 
compromised.
    (3) Responsibility for the security of the burn bag remains with the 
OMB office until it is handed over to the authorized representative at 
the shredder room. Accountability records will be adjusted after the 
burn bags have been delivered. Destruction actions will be recorded on 
OMB Form 87 by the division TSCO or by the appropriate ATSCO at the time 
the destruction is accomplished or at the time the burn bag is delivered 
to the U.D. Officer.
    (c) Technical guidance. Technical guidance concerning appropriate 
methods, equipment, and standards for destruction of electronic 
classified media, processing equipment components and the like, may be 
obtained by submitting all pertinent information to NSA/CSS Directorate 
for Information Systems Security, Ft. Meade, Maryland 20755. 
Specifications concerning appropriate equipment and standards for 
destruction of other storage media may be obtained from the General 
Services Administration.



Sec.  1312.30  Loss or possible compromise.

    Any person who has knowledge of the loss or possible compromise of 
classified information shall immediately secure the material and then 
report the circumstances to the EOP Security Officer. The EOP Security 
Officer will immediately initiate an inquiry to determine the 
circumstances surrounding the loss or compromise for the purpose of 
taking corrective measures and/or instituting appropriate 
administrative, disciplinary, or legal action. The agency originating 
the information shall be notified of the loss or compromise so that the 
necessary damage assessment can be made.



Sec.  1312.31  Security violations.

    (a) A security violation notice is issued by the United States 
Secret Service when an office/division fails to properly secure 
classified information. Upon discovery of an alleged security violation, 
the USSS implements their standard procedures which include the 
following actions:
    (1) Preparation of a Record of Security Violation form;
    (2) When a document is left on a desk or other unsecured area, the 
officer will remove the classified document(s) and deliver to the 
Uniformed Division's Control Center; and
    (3) Where the alleged violation involves an open safe, the officer 
will remove one file bearing the highest classification level, annotate 
it with his or her name, badge number, date and time, and return the 
document to the

[[Page 151]]

safe, which will then be secured. A description of the document will be 
identified in the Record of Security Violations and a copy of the 
violation will be left in the safe.
    (b) Office of record. The EOP Security Office shall serve as the 
primary office of record for OMB security violations. Reports of 
violations will remain in the responsible individual's security file 
until one year after the individual departs the Executive Office of the 
President, at which time all violation reports will be destroyed.
    (c) Compliance. All Office of Management and Budget employees will 
comply with this section. Additionally, personnel on detail or temporary 
duty will comply with this section, however, their parent agencies will 
be provided with a copy of any security violation incurred during their 
period of service to OMB.
    (d) Responsibilities for processing security violations--(1) EOP 
Security Officer. The EOP Security Officer shall provide OMB with 
assistance regarding Agency security violations. Upon receipt of a 
Record of Security Violation alleging a security violation, the EOP 
Security Officer shall:
    (i) Prepare a memorandum to the immediate supervisor of the office/
division responsible for the violation requesting that an inquiry be 
made into the incident. Attached to the memorandum will be a copy of the 
Record of Security Violation form. The receiving office/division will 
prepare a written report within five working days of its receipt of the 
Security Officer's memorandum.
    (ii) Provide any assistance needed for the inquiry conducted by the 
office/division involved in the alleged violation.
    (iii) Upon receipt of the report of inquiry from the responsible 
office/division, the EOP Security Officer will:
    (A) Consult with the OMB Associate Director (or Assistant Director) 
for Administration and the General Counsel;
    (B) Determine if a damage assessment report is required. A damage 
assessment will be made by the agency originating the classified 
information, and will be prepared after it has been determined that the 
information was accessed without authorization; and
    (C) Forward the report with a recommendation to the OMB General 
Counsel.
    (2) Immediate supervisors. Upon receipt of the EOP Security 
Officer's security violation memorandum, the immediate supervisor will 
make an inquiry into the alleged incident, and send a written report of 
inquiry to the EOP Security Officer. The inquiry should determine, and 
the related report should identify, at a minimum:
    (i) Whether an actual security violation occurred;
    (ii) The identity of the person(s) responsible; and
    (iii) The probability of unauthorized access.
    (3) Deputy Associate Directors (or the equivalent) will:
    (i) Review and concur or comment on the written report; and
    (ii) In conjunction with the immediate supervisor, determine what 
action will be taken to prevent, within their area of responsibility, a 
recurrence of the circumstances giving rise to the violation.
    (e) Staff penalties for OMB security violations. When assessing 
penalties in accordance with this section, only those violations 
occurring within the calendar year (beginning January 1) will be 
considered. However, reports of all previous violations remain in the 
security files. These are the standard violation penalties that will be 
imposed. At the discretion of the Director or his designee, greater or 
lesser penalties may be imposed based upon the circumstances giving rise 
to the violation, the immediate supervisor's report of inquiry, and the 
investigation and findings of the EOP Security Officer and/or the OMB 
Associate Director (or Assistant Director) for Administration.
    (1) First violation:
    (i) Written notification of the violation will be filed in the 
responsible individual's security file; and
    (ii) The EOP Security Officer and/or the Associate Director (or 
Assistant Director) for Administration will consult with the respective 
immediate supervisor, and the responsible individual will be advised of 
the penalties that may be applied should a second violation occur.
    (2) Second violation:

[[Page 152]]

    (i) Written notification of the violation will be filed in the 
responsible individual's security file;
    (ii) The EOP Security Officer and/or the Associate Director (or 
Assistant Director) for Administration will consult with the respective 
Deputy Associate Director (or the equivalent) and immediate supervisor 
and the responsible individual who will be advised of the penalties that 
may be applied should a third violation occur; and
    (iii) A letter of Warning will be placed in the Disciplinary Action 
file maintained by the Office of Administration, Human Resources 
Management Division.
    (3) Third violation:
    (i) Written notification of the violation will be filed in the 
responsible individual's security file;
    (ii) The EOP Security Officer and/or the Associate Director (or 
Assistant Director) for Administration will consult with the OMB Deputy 
Director, General Counsel, the respective Deputy Associate Director (or 
equivalent), and the immediate supervisor and the responsible individual 
who will be advised of the penalties that may be applied should a fourth 
violation occur; and
    (iii) A Letter of Reprimand will be placed in the Disciplinary 
Action file maintained by the OA/HRMD.
    (4) Fourth violation:
    (i) Written notification of the violation will be filed in the 
responsible individual's security file;
    (ii) The EOP Security Officer and/or the Associate Director (or 
Assistant Director) for Administration will consult with the OMB 
Director, Deputy Director, General Counsel, the respective Deputy 
Associate Director (or the equivalent), and immediate supervisor;
    (iii) The responsible individual may receive a suspension without 
pay for a period not to exceed 14 days; and
    (iv) The responsible individual will be advised that future 
violations could result in the denial of access to classified material 
or other adverse actions as may be appropriate, including dismissal.



               Subpart C_Mandatory Declassification Review



Sec.  1312.32  Purpose and authority.

    Other government agencies, and individual members of the public, 
frequently request that classified information in OMB files be reviewed 
for possible declassification and release. This subpart prescribes the 
procedures for such review and subsequent release or denial. It is 
issued under the authority of Executive Order 12958 (60 FR 19825, 3 CFR, 
1995 Comp., p. 333), as implemented by Information Security Oversight 
Office Directive No. 1 (32 CFR part 2001).



Sec.  1312.33  Responsibility.

    All requests for the mandatory declassification review of classified 
information in OMB files should be addressed to the Associate Director 
(or Assistant Director) for Administration, who will acknowledge receipt 
of the request. When a request does not reasonably describe the 
information sought, the requester shall be notified that unless 
additional information is provided, or the scope of the request is 
narrowed, no further action will be taken. All requests will receive a 
response within 180 days of receipt of the request.



Sec.  1312.34  Information in the custody of OMB.

    Information contained in OMB files and under the exclusive 
declassification jurisdiction of the office will be reviewed by the 
office of primary interest to determine whether, under the 
declassification provisions of the Order, the requested information may 
be declassified. If so, the information will be made available to the 
requestor unless withholding is otherwise warranted under applicable 
law. If the information may not be released, in whole or in part, the 
requestor shall be given a brief statement as to the reasons for denial, 
a notice of the right to appeal the determination to the Deputy 
Director, OMB, and a notice that such an appeal must be filed within 60 
days in order to be considered.

[[Page 153]]



Sec.  1312.35  Information classified by another agency.

    When a request is received for information that was classified by 
another agency, the Associate Director (or Assistant Director) for 
Administration will forward the request, along with any other related 
materials, to the appropriate agency for review and determination as to 
release. Recommendations as to release or denial may be made if 
appropriate. The requester will be notified of the referral, unless the 
receiving agency objects on the grounds that its association with the 
information requires protection.



Sec.  1312.36  Appeal procedure.

    Appeals received as a result of a denial, see Sec.  1312.34, will be 
routed to the Deputy Director who will take action as necessary to 
determine whether any part of the information may be declassified. If 
so, he will notify the requester of his determination and make that 
information available that is declassified and otherwise releasable. If 
continued classification is required, the requestor shall be notified by 
the Deputy Director of the reasons thereafter. Determinations on appeals 
will normally be made within 60 working days following receipt. If 
additional time is needed, the requestor will be notified and this 
reason given for the extension. The agency's decision can be appealed to 
the Interagency Security Classification Appeals Panel.



Sec.  1312.37  Fees.

    There will normally be no fees charged for the mandatory review of 
classified material for declassification under this section.



PART 1315_PROMPT PAYMENT--Table of Contents



Sec.
1315.1 Application.
1315.2 Definitions.
1315.3 Responsibilities.
1315.4 Prompt payment standards and required notices to vendors.
1315.5 Accelerated payment methods.
1315.6 Payment without evidence that supplies have been received (fast 
          payment).
1315.7 Discounts.
1315.8 Rebates.
1315.9 Required documentation.
1315.10 Late payment interest penalties.
1315.11 Additional penalties.
1315.12 Payments to governmentwide commercial purchase card issuers.
1315.13 Commodity Credit Corporation payments.
1315.14 Payments under construction contracts.
1315.15 Grant recipients.
1315.16 Relationship to other laws.
1315.17 Formulas.
1315.18 Inquiries.
1315.19 Regulatory references to OMB Circular A-125.
1315.20 Application of Section 1010 of the National Defense 
          Authorization Act for Fiscal Year 2001.

    Authority: 31 U.S.C. chapter 39; Section 1010 of Public Law 106-398, 
114 Stat. 1654; Section 1007 of Public Law 107-107, 115 Stat. 1012.

    Source: 64 FR 52586, Sept. 29, 1999, unless otherwise noted.



Sec.  1315.1  Application.

    (a) Procurement contracts. This part applies to contracts for the 
procurement of goods or services awarded by:
    (1) All Executive branch agencies except:
    (i) The Tennessee Valley Authority, which is subject to the Prompt 
Payment Act (31 U.S.C. chapter 39), but is not covered by this part; and
    (ii) Agencies specifically exempted under 5 U.S.C. 551(1); and
    (2) The United States Postal Service. The Postmaster General is 
responsible for issuing implementing procurement regulations, 
solicitation provisions, and contract clauses for the United States 
Postal Service.
    (b) Vendor payments. All Executive branch vendor payments and 
payments to those defined as contractors or vendors (see Sec.  
1315.2(hh)) are subject to the Prompt Payment Act with the following 
exceptions:
    (1) Contract Financing Payments, as defined in Sec.  1315.2(h); and
    (2) Payments related to emergencies (as defined in the Disaster 
Relief Act of 1974, Public Law 93-288, as amended (42 U.S.C. 5121 et 
seq.)); military contingency operations (as defined in 10 U.S.C. 101 
(a)(13)); and the release or threatened release of hazardous substances 
(as defined in 4 U.S.C. 9606, Section 106).
    (c) Utility payments. All utility payments, including payments for 
telephone service, are subject to the Act except those under paragraph 
(b)(2) of

[[Page 154]]

this section. Where state, local or foreign authorities impose 
generally-applicable late payment rates for utility payments, those 
rates shall take precedence. In the absence of such rates, this part 
will apply.
    (d) Commodity Credit Corporation payments. Payments made pursuant to 
Section 4(h) of the Act of June 29, 1948 (15 U.S.C. 714b(h)) (``CCC 
Charter Act'') relating to the procurement of property and services, and 
payments to which producers on a farm are entitled under the terms of an 
agreement entered into under the Agricultural Act of 1949 (7 U.S.C. 1421 
et seq.) are subject to this part.



Sec.  1315.2  Definitions.

    (a) Accelerated payment means a payment made prior to the due date 
(see discussion in Sec.  1315.5).
    (b) Acceptance means an acknowledgment by an authorized Government 
official that goods received and services rendered conform with the 
contract requirements. Acceptance also applies to partial deliveries.
    (c) Agency includes, as defined in 5 U.S.C. 551(1), each authority 
of the United States Government, whether or not it is within or subject 
to review by another agency, excluding the Congress, the United States 
courts, governments of territories or possessions, the District of 
Columbia government, courts martial, military commissions, and military 
authority exercised in the field in time of war or in occupied 
territory. Agency also includes any entity that is operated exclusively 
as an instrumentality of such an agency for the purpose of administering 
one or more programs of that agency, and that is so identified for this 
purpose by the head of such agency. The term agency includes military 
post and base exchanges and commissaries.
    (d) Applicable interest rate means the interest rate established by 
the Secretary of the Treasury for interest payments under Section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611) which is in effect on 
the day after the due date, except where the interest penalty is 
prescribed by other governmental authority (e.g., utility tariffs). The 
rate established under the Contract Disputes Act is referred to as the 
``Renegotiation Board Interest Rate,'' the ``Contract Disputes Act 
Interest Rate,'' and the ``Prompt Payment Act Interest Rate,'' and is 
published semiannually by the Fiscal Service, Department of Treasury, in 
the Federal Register on or about January 1 and July 1.
    (e) Automated Clearing House (ACH) means a network that performs 
interbank clearing of electronic debit and credit entries for 
participating financial institutions.
    (f) Banking information means information necessary to facilitate an 
EFT payment, including the vendor's bank account number, and the vendor 
financial institution's routing number.
    (g) Contract means any enforceable agreement, including rental and 
lease agreements, purchase orders, delivery orders (including 
obligations under Federal Supply Schedule contracts), requirements-type 
(open-ended) service contracts, and blanket purchases agreements between 
an agency and a vendor for the acquisition of goods or services and 
agreements entered into under the Agricultural Act of 1949 (7 U.S.C. 
1421 et seq.). Contracts must meet the requirements of Sec.  1315.9(a).
    (h) Contract financing payments means an authorized disbursement of 
monies prior to acceptance of goods or services including advance 
payments, progress payments based on cost, progress payments (other than 
under construction contracts) based on a percentage or stage of 
completion, payments on performance-based contracts and interim payments 
on cost-type contracts (other than under cost-reimbursement contracts 
for the acquisition of services). Contract financing payments do not 
include invoice payments, payments for partial deliveries, or lease and 
rental payments. Contract financing payments also do not include 
progress payments under construction contracts based on a percentage or 
stage of completion and interim payments under cost-reimbursement 
service contracts. For purposes of this part, interim payments under a 
cost-reimbursement service contract are treated as invoice payments and 
subject to the requirements of this part, except as otherwise provided 
(see, e.g., Sec. Sec.  1315.4(d) and (e), and 1315.9(b)(1) and (c)).

[[Page 155]]

    (i) Contracting office means any entity issuing a contract or 
purchase order or issuing a contract modification or termination.
    (j) Contractor (see Vendor).
    (k) Day means a calendar day including weekend and holiday, unless 
otherwise indicated.
    (l) Delivery ticket means a vendor document supplied at the time of 
delivery which indicates the items delivered, can serve as a proper 
invoice based on contractual agreement.
    (m) Designated agency office means the office designated by the 
purchase order, agreement, or contract to first receive and review 
invoices. This office can be contractually designated as the receiving 
entity. This office may be different from the office issuing the 
payment.
    (n) Discount means an invoice payment reduction offered by the 
vendor for early payment.
    (o) Discount date means the date by which a specified invoice 
payment reduction, or a discount, can be taken.
    (p) Due date means the date on which Federal payment should be made. 
Determination of such dates is discussed in Sec.  1315.4(g).
    (q) Electronic commerce means the end to end electronic exchange of 
business information using electronic data interchange, electronic mail, 
electronic bulletin boards, electronic funds transfer (EFT) and similar 
technologies.
    (r) Electronic data interchange means the computer to computer 
exchange of routine business information in a standard format. The 
standard formats are developed and maintained by the Accredited 
Standards Committee of the American National Standards Institute, 11 
West 42d Street, New York, NY 10036.
    (s) Electronic Funds Transfer (EFT) means any transfer of funds, 
other than a transaction originated by cash, check, or similar paper 
instrument, that is initiated through an electronic terminal, telephone, 
computer, or magnetic tape, for the purpose of ordering, instructing, or 
authorizing a financial institution to debit or credit an account. The 
term includes, but is not limited to, Automated Clearing House and 
Fedwire transfers.
    (t) Emergency payment means a payment made under an emergency 
defined as a hurricane, tornado, storm, flood, high water, wind-driven 
water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, 
mud slide, snowstorm, drought, fire, explosion, or other catastrophe 
which requires Federal emergency assistance to supplement State and 
local efforts to save lives and property, and ensure public health and 
safety; and the release or threatened release of hazardous substances.
    (u) Evaluated receipts means contractually designated use of the 
acceptance document and the contract as the basis for payment without 
requiring a separate invoice.
    (v) Fast payment means a payment procedure under the Federal 
Acquisition Regulation at Part 13.4 which allows payment under limited 
conditions to a vendor prior to the Government's verification that 
supplies have been received and accepted.
    (w) Federal Acquisition Regulation (FAR) means the regulation (48 
CFR chapter 1) that governs most Federal acquisition and related payment 
issues. Agencies may also have supplements prescribing unique agency 
policies.
    (x) Governmentwide commercial purchase cards means internationally-
accepted purchase cards available to all Federal agencies under a 
General Services Administration contract for the purpose of making 
simplified acquisitions of up to the threshold set by the Federal 
Acquisition Regulation or for travel expenses or payment, for purchases 
of fuel, or other purposes as authorized by the contract.
    (y) Invoice means a bill, written document or electronic 
transmission, provided by a vendor requesting payment for property 
received or services rendered. A proper invoice must meet the 
requirements of Sec.  1315.9(b). The term invoice can include receiving 
reports and delivery tickets when contractually designated as invoices.
    (z) Payment date means the date on which a check for payment is 
dated or the date of an electronic fund transfer (EFT) payment 
(settlement date).
    (aa) Rebate means a monetary incentive offered to the Government by 
Governmentwide commercial purchase

[[Page 156]]

card issuers to pay purchase card invoices early.
    (bb) Receiving office means the entity which physically receives the 
goods or services, and may be separate from the accepting entity.
    (cc) Receiving report means written or electronic evidence of 
receipt of goods or services by a Government official. Receiving reports 
must meet the requirements of Sec.  1315.9(c).
    (dd) Recurring payments means payments for services of a recurring 
nature, such as rents, building maintenance, transportation services, 
parking, leases, and maintenance for equipment, pagers and cellular 
phones, etc., which are performed under agency-vendor agreements 
providing for payments of definite amounts at fixed periodic intervals.
    (ee) Settlement date means the date on which an EFT payment is 
credited to the vendor's financial institution.
    (ff) Taxpayer Identifying Number (TIN) means the nine digit Employer 
Identifying Number or Social Security Number as defined in Section 6109 
of the Internal Revenue Code of 1986 (26 U.S.C. 6109).
    (gg) Utilities and telephones means electricity, water, sewage 
services, telephone services, and natural gas. Utilities can be 
regulated, unregulated, or under contract.
    (hh) Vendor means any person, organization, or business concern 
engaged in a profession, trade, or business and any not-for-profit 
entity operating as a vendor (including State and local governments and 
foreign entities and foreign governments, but excluding Federal 
entities).

[64 FR 52586, Sept. 29, 1999, as amended at 65 FR 78404, Dec. 15, 2000]



Sec.  1315.3  Responsibilities.

    Each agency head is responsible for the following:
    (a) Issuing internal procedures. Ensuring that internal procedures 
will include provisions for monitoring the causes of late payments and 
any interest penalties incurred, taking necessary corrective action, and 
handling inquiries.
    (b) Internal control systems. Ensuring that effective internal 
control systems are established and maintained as required by OMB 
Circular A-123, ``Management Accountability and Control.'' \1\ 
Administrative activities required for payments to vendors under this 
part are subject to periodic quality control validation to be conducted 
no less frequently than once annually. Quality control processes will be 
used to confirm that controls are effective and that processes are 
efficient. Each agency head is responsible for establishing a quality 
control program in order to quantify payment performance and qualify 
corrective actions, aid cash management decision making, and estimate 
payment performance if actual data is unavailable.
---------------------------------------------------------------------------

    \1\ For availability of OMB circulars, see 5 CFR 1310.3.
---------------------------------------------------------------------------

    (c) Financial management systems. Ensuring that financial management 
systems comply with OMB Circular A-127, ``Financial Management 
Systems.'' \2\ Agency financial systems shall provide standardized 
information and electronic data exchange to the central management 
agency. Systems shall provide complete, timely, reliable, useful and 
consistent financial management information. Payment capabilities should 
provide accurate and useful management reports on payments.
---------------------------------------------------------------------------

    \2\ See footnote 1 in Sec.  1315.3(b).
---------------------------------------------------------------------------

    (d) Reviews. Ensuring that Inspectors General and internal auditors 
review payments performance and systems accuracy, consistent with the 
Chief Financial Officers (CFO) Act requirements.
    (e) Timely payments and interest penalties. Ensuring timely payments 
and payment of interest penalties where required.



Sec.  1315.4  Prompt payment standards and required notices to vendors.

    Agency business practices shall conform to the following standards:
    (a) Required documentation. Agencies will maintain paper or 
electronic documentation as required in Sec.  1315.9.
    (b) Receipt of invoice. For the purposes of determining a payment 
due date and the date on which interest will begin to accrue if a 
payment is late, an invoice shall be deemed to be received:
    (1) On the later of:

[[Page 157]]

    (i) For invoices that are mailed, the date a proper invoice is 
actually received by the designated agency office if the agency 
annotates the invoice with date of receipt at the time of receipt. For 
invoices electronically transmitted, the date a readable transmission is 
received by the designated agency office, or the next business day if 
received after normal working hours; or
    (ii) The seventh day after the date on which the property is 
actually delivered or performance of the services is actually completed; 
unless--
    (A) The agency has actually accepted the property or services before 
the seventh day in which case the acceptance date shall substitute for 
the seventh day after the delivery date; or
    (B) A longer acceptance period is specified in the contract, in 
which case the date of actual acceptance or the date on which such 
longer acceptance period ends shall substitute for the seventh day after 
the delivery date;
    (2) On the date placed on the invoice by the contractor, when the 
agency fails to annotate the invoice with date of receipt of the invoice 
at the time of receipt (such invoice must be a proper invoice); or
    (3) On the date of delivery, when the contract specifies that the 
delivery ticket may serve as an invoice.
    (c) Review of invoice. Agencies will use the following procedures in 
reviewing invoices:
    (1) Each invoice will be reviewed by the designated agency office as 
soon as practicable after receipt to determine whether the invoice is a 
proper invoice as defined in Sec.  1315.9(b);
    (2) When an invoice is determined to be improper, the agency shall 
return the invoice to the vendor as soon as practicable after receipt, 
but no later than 7 days after receipt (refer also to paragraph (g)(4) 
of this section regarding vendor notification and determining the 
payment due date.) The agency will identify all defects that prevent 
payment and specify all reasons why the invoice is not proper and why it 
is being returned. This notification to the vendor shall include a 
request for a corrected invoice, to be clearly marked as such;
    (3) Any media which produce tangible recordings of information in 
lieu of ``written'' or ``original'' paper document equivalents should be 
used by agencies to expedite the payment process, rather than delaying 
the process by requiring ``original'' paper documents. Agencies should 
ensure adequate safeguards and controls to ensure the integrity of the 
data and to prevent duplicate processing.
    (d) Receipt of goods and services. Agencies will ensure that receipt 
is properly recorded at the time of delivery of goods or completion of 
services. This requirement does not apply to interim payments on cost-
reimbursement service contracts except as otherwise required by agency 
regulations.
    (e) Acceptance. Agencies will ensure that acceptance is executed as 
promptly as possible. Commercial items and services should not be 
subject to extended acceptance periods. Acceptance reports will be 
forwarded to the designated agency office by the fifth working day after 
acceptance. Unless other arrangements are made, acceptance reports will 
be stamped or otherwise annotated with the receipt date in the 
designated agency office. This requirement does not apply to interim 
payments on cost-reimbursement service contracts except as otherwise 
required by agency regulations.
    (f) Starting the payment period. The period available to an agency 
to make timely payment of an invoice without incurring an interest 
penalty shall begin on the date of receipt of a proper invoice (see 
paragraph (b) of this section) except where no invoice is required 
(e.g., for some recurring payments as defined in Sec.  1315.2(dd)).
    (g) Determining the payment due date. (1) Except as provided in 
paragraphs (g)(2) through (5) of this section, the payment is due 
either:
    (i) On the date(s) specified in the contract;
    (ii) In accordance with discount terms when discounts are offered 
and taken (see Sec.  1315.7);
    (iii) In accordance with Accelerated Payment Methods (see Sec.  
1315.5); or
    (iv) 30 days after the start of the payment period as specified in 
paragraph (f) of this section, if not specified in the contract, if 
discounts are not

[[Page 158]]

taken, and if accelerated payment methods are not used.
    (2) Interim payments under cost-reimbursement contracts for 
services. The payment due date for interim payments under cost-
reimbursement service contracts shall be 30 days after the date of 
receipt of a proper invoice.
    (3) Certain commodity payments. (i) For meat, meat food products, as 
defined in Section 2(a)(3) of the Packers and Stockyard Act of 1921 (7 
U.S.C. 182(3)), including any edible fresh or frozen poultry meat, any 
perishable poultry meat food product, fresh eggs, any perishable egg 
product, fresh or frozen fish as defined in the Fish and Seafood 
Promotion Act of 1986 (16 U.S.C. 4003(3)), payment will be made no later 
than the seventh day after delivery.
    (ii) For perishable agricultural commodities, as defined in Section 
1(4) of the Perishable Agricultural Commodities Act of 1930 (7 U.S.C. 
499 a(4)), payment will be made no later than the 10th day after 
delivery, unless another payment date is specified in the contract.
    (iii) For dairy products (as defined in Section 111(e) of the Dairy 
Production Stabilization Act of 1983, 7 U.S.C. 4502(e)), and including, 
at a minimum, liquid milk, cheese, certain processed cheese products, 
butter, yogurt, and ice cream, edible fats or oils, and food products 
prepared from edible fats or oils (including, at a minimum, mayonnaise, 
salad dressings and other similar products), payment will be made no 
later than 10 days after the date on which a proper invoice, for the 
amount due, has been received by the agency acquiring the above listed 
products. Nothing in the Act permits limitation to refrigerated 
products. When questions arise about the coverage of a specific product, 
prevailing industry practices should be followed in specifying a 
contractual payment due date.
    (4) Mixed invoices for commodities. When an invoice is received for 
items with different payment periods, agencies:
    (i) May pay the entire invoice on the due date for the commodity 
with the earliest due date, if it is considered in the best interests of 
the agency;
    (ii) May make split payments by the due date applicable to each 
category;
    (iii) Shall pay in accordance with the contractual payment 
provisions (which may not exceed the statutory mandated periods 
specified in paragraph (g)(2) of this section); and
    (iv) Shall not require vendors to submit multiple invoices for 
payment of individual orders by the agency.
    (5) Notification of improper invoice. When an agency fails to make 
notification of an improper invoice within seven days according to 
paragraph (c)(2) of this section (three days for meat and meat food, 
fish and seafood products; and five days for perishable agricultural 
commodities, dairy products, edible fats or oils and food products 
prepared from edible fats or oils), the number of days allowed for 
payment of the corrected proper invoice will be reduced by the number of 
days between the seventh day (or the third or fifth day, as otherwise 
specified in this paragraph (g)(4)) and the day notification was 
transmitted to the vendor. Calculation of interest penalties, if any, 
will be based on an adjusted due date reflecting the reduced number of 
days allowable for payment;
    (h) Payment date. Payment will be considered to be made on the 
settlement date for an electronic funds transfer (EFT) payment or the 
date of the check for a check payment. Payments falling due on a weekend 
or federal holiday may be made on the following business day without 
incurring late payment interest penalties.
    (i) Late payment. When payments are made after the due date, 
interest will be paid automatically in accordance with the procedures 
provided in this part.
    (j) Timely payment. An agency shall make payments no more than seven 
days prior to the payment due date, but as close to the due date as 
possible, unless the agency head or designee has determined, on a case-
by-case basis for specific payments, that earlier payment is necessary. 
This authority must be used cautiously, weighing the benefits of making 
a payment early against the good stewardship inherent in effective cash 
management practices. An agency may use the ``accelerated payment 
methods'' in Sec.  1315.5 when it determines that such earlier payment 
is necessary.

[[Page 159]]

    (k) Payments for partial deliveries. Agencies shall pay for partial 
delivery of supplies or partial performance of services after 
acceptance, unless specifically prohibited by the contract. Payment is 
contingent upon submission of a proper invoice if required by the 
contract.

[64 FR 52586, Sept. 29, 1999, as amended at 65 FR 78405, Dec. 15, 2000]



Sec.  1315.5  Accelerated payment methods.

    (a) A single invoice under $2,500. Payments may be made as soon as 
the contract, proper invoice , receipt and acceptance documents are 
matched except where statutory authority prescribes otherwise and except 
where otherwise contractually stipulated (e.g., governmentwide 
commercial purchase card.) Vendors shall be entitled to interest 
penalties if invoice payments are made after the payment due date.
    (b) Small business (as defined in FAR 19.001 (48 CFR 19.001)). 
Agencies may pay a small business as quickly as possible, when all 
proper documentation, including acceptance, is received in the payment 
office and before the payment due date. Such payments are not subject to 
payment restrictions stated elsewhere in this part. Vendors shall be 
entitled to interest penalties if invoice payments are made after the 
payment due date.
    (c) Emergency payments. Payments related to emergencies and 
disasters (as defined in the Robert T. Stafford Disaster Relief Act and 
Emergency Assistance, Pub. L. 93-288, as amended (42 U.S.C. 5 121 et 
seq.); payments related to the release or threatened release of 
hazardous substances (as defined in the Comprehensive Environmental 
Response Compensation and Liability Act of 1980, Pub. L. 96-510, 42 
U.S.C. 9606); and payments made under a military contingency (as defined 
in 10 U.S.C. 101(a)(13)) may be made as soon as the contract, proper 
invoice, receipt and acceptance documents or any other agreement are 
matched. Vendors shall be entitled to interest penalties if invoice 
payments are made after the payment due date.
    (d) Interim payments under cost-reimbursement contracts for 
services. For interim payments under cost-reimbursement service 
contracts, agency heads may make payments earlier than seven days prior 
to the payment due date in accordance with agency regulations or 
policies.

[64 FR 52586, Sept. 29, 1999, as amended at 65 FR 78405, Dec. 15, 2000]



Sec.  1315.6  Payment without evidence that supplies have been received 
(fast payment).

    (a) In limited situations, payment may be made without evidence that 
supplies have been received. Instead, a contractor certification that 
supplies have been shipped may be used as the basis for authorizing 
payment. Payment may be made within 15 days after the date of receipt of 
the invoice. This payment procedure may be employed only when all of the 
following conditions are present:
    (1) Individual orders do not exceed $25,000 (except where agency 
heads permits a higher amount on a case-by-case basis);
    (2) Deliveries of supplies are to occur where there is both a 
geographical separation and a lack of adequate communications facilities 
between Government receiving and disbursing activities that make it 
impracticable to make timely payments based on evidence of Federal 
acceptance;
    (3) Title to supplies will vest in the Government upon delivery to a 
post office or common carrier for mailing or shipment to destination or 
upon receipt by the Government if the shipment is by means other than 
the Postal Service or a common carrier; and
    (4) The contractor agrees to replace, repair, or correct supplies 
not received at destination, damaged in transit, or not conforming to 
purchase requirements.
    (b) Agencies shall promptly inspect and accept supplies acquired 
under these procedures and shall ensure that receiving reports and 
payment documents are matched and steps are taken to correct 
discrepancies.
    (c) Agencies shall ensure that specific internal controls are in 
place to assure that supplies paid for are received.
    (d) As authorized by the 1988 Amendment to the Prompt Payment Act 
(Section 11(b)(1)(C)), a contract clause at 48

[[Page 160]]

CFR 52.213-1 is provided in the Federal Acquisition Regulations (FAR) at 
48 CFR part 13, subpart 13.4 ``Fast Payment Procedure,'' for use when 
using this fast payment procedure.



Sec.  1315.7  Discounts.

    Agencies shall follow these procedures in taking discounts and 
determining the payment due dates when discounts are taken:
    (a) Economically justified discounts. If an agency is offered a 
discount by a vendor, whether stipulated in the contract or offered on 
an invoice, an agency may take the discount if economically justified 
(see discount formula in Treasury Financial Manual (TFM) 6-8040.40) \3\ 
but only after acceptance has occurred. Agencies are encouraged to 
include discount terms in a contract to give agencies adequate time to 
take the discount if it is determined to be economically justified.
---------------------------------------------------------------------------

    \3\ The Treasury Financial Manual is available by calling the Prompt 
Payment Hotline at 800-266-9667 or the Prompt Payment web site at http:/
/www.fms.treas.gov/prompt/index.html.
---------------------------------------------------------------------------

    (b) Discounts taken after the discount date. If an agency takes the 
discount after the deadline, the agency shall pay an interest penalty on 
any amount remaining unpaid as prescribed in Sec.  1315.10(a)(6).
    (c) Payment date. When a discount is taken, payment will be made as 
close as possible to, but no later than, the discount date.
    (d) Start date. The period for taking the discount is calculated 
from the date placed on the proper invoice by the vendor. If there is no 
invoice date on the invoice by the vendor, the discount period will 
begin on the date a proper invoice is actually received and date stamped 
or otherwise annotated by the designated agency office.



Sec.  1315.8  Rebates.

    Agencies shall determine governmentwide commercial purchase card 
payment dates based on an analysis of the total costs and total benefits 
to the Federal government as a whole, unless specified in a contract. 
When calculating costs and benefits, agencies are expected to include 
the cost to the government of paying early. This cost is the interest 
the government would have earned, at the Current Value of Funds rate, 
for each day that payment was not made. Agencies may factor in benefits 
gained from paying early due to, for example, streamlining the payment 
process or other efficiencies. A rebate formula is provided in Sec.  
1315.17 and at the Prompt Payment website at www.fms.treas.gov/prompt/
index.html.



Sec.  1315.9  Required documentation.

    Agencies are required to ensure the following payment documentation 
is established to support payment of invoices and interest penalties:
    (a) The following information from the contract is required as 
payment documentation:
    (1) Payment due date(s) as defined in Sec.  1315.4(g);
    (2) A notation in the contract that partial payments are prohibited, 
if applicable;
    (3) For construction contracts, specific payment due dates for 
approved progress payments or milestone payments for completed phases, 
increments, or segments of the project;
    (4) If applicable, a statement that the special payment provisions 
of the Packers and Stockyard Act of 1921 (7 U.S.C. 182(3)), or the 
Perishable Agricultural Commodities Act of 1930 (7 U.S.C. 499a(4)), or 
Fish and Seafood Promotion Act of 1986 (16 U.S.C. 4003(3)) shall apply;
    (5) Where considered appropriate by the agency head, the specified 
acceptance period following delivery to inspect and/or test goods 
furnished or to evaluate services performed is stated;
    (6) Name (where practicable), title, telephone number, and complete 
mailing address of officials of the Government's designated agency 
office, and of the vendor receiving the payments;
    (7) Reference to requirements under the Prompt Payment Act, 
including the payment of interest penalties on late invoice payments 
(including progress payments under construction contracts);
    (8) Reference to requirements under the Debt Collection Improvement 
Act (Pub. L. 104-134, 110 Stat. 1321), including the requirement that 
payments must be made electronically except in

[[Page 161]]

situations where the EFT requirement is waived under 31 CFR 208.4. Where 
electronic payment is required, the contract will stipulate that banking 
information must be submitted no later than the first request for 
payment;
    (9) If using Fast Payment, the proper FAR clause stipulating Fast 
Payment is required.
    (b)(1) Except for interim payment requests under cost-reimbursement 
service contracts, which are covered by paragraph (b)(2) of this 
section, the following correct information constitutes a proper invoice 
and is required as payment documentation:
    (i) Name of vendor;
    (ii) Invoice date;
    (iii) Government contract number, or other authorization for 
delivery of goods or services;
    (iv) Vendor invoice number, account number, and/or any other 
identifying number agreed to by contract;
    (v) Description (including, for example, contract line/subline 
number), price, and quantity of goods and services rendered;
    (vi) Shipping and payment terms (unless mutually agreed that this 
information is only required in the contract);
    (vii) Taxpayer Identifying Number (TIN), unless agency procedures 
provide otherwise;
    (viii) Banking information, unless agency procedures provide 
otherwise, or except in situations where the EFT requirement is waived 
under 31 CFR 208.4;
    (ix) Contact name (where practicable), title and telephone number;
    (x) Other substantiating documentation or information required by 
the contract.
    (2) An interim payment request under a cost-reimbursement service 
contract constitutes a proper invoice for purposes of this part if it 
correctly includes all the information required by the contract or by 
agency procedures.
    (c) Except for interim payment requests under cost-reimbursement 
service contracts, the following information from receiving reports, 
delivery tickets, and evaluated receipts is required as payment 
documentation:
    (1) Name of vendor;
    (2) Contract or other authorization number;
    (3) Description of goods or services;
    (4) Quantities received, if applicable;
    (5) Date(s) goods were delivered or services were provided;
    (6) Date(s) goods or services were accepted;
    (7) Signature (or electronic alternative when supported by 
appropriate internal controls), printed name, telephone number, mailing 
address of the receiving official, and any additional information 
required by the agency.
    (d) When a delivery ticket is used as an invoice, it must contain 
information required by agency procedures. The requirements in paragraph 
(b) of this section do not apply except as provided by agency 
procedures.

[64 FR 52586, Sept. 29, 1999, as amended at 65 FR 78405, Dec. 15, 2000]



Sec.  1315.10  Late payment interest penalties.

    (a) Application and calculation. Agencies will use the following 
procedures in calculating interest due on late payments:
    (1) Interest will be calculated from the day after the payment due 
date through the payment date at the interest rate in effect on the day 
after the payment due date;
    (2) Adjustments will be made for errors in calculating interest;
    (3) For up to one year, interest penalties remaining unpaid at the 
end of any 30 day period will be added to the principal and subsequent 
interest penalties will accrue on that amount until paid;
    (4) When an interest penalty is owed and not paid, interest will 
accrue on the unpaid amount until paid, except as described in paragraph 
(a)(5) of this section;
    (5) Interest penalties under the Prompt Payment Act will not 
continue to accrue:
    (i) After the filing of a claim for such penalties under the 
Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.); or
    (ii) For more than one year;
    (6) When an agency takes a discount after the discount date, 
interest will be paid on the amount of the discount taken. Interest will 
be calculated for the period beginning the day after the

[[Page 162]]

specified discount date through the date of payment of the discount 
erroneously taken;
    (7) Interest penalties of less than one dollar need not be paid;
    (8) If the banking information supplied by the vendor is incorrect, 
interest under this regulation will not accrue until seven days after 
such correct information is received (provided that the vendor has been 
given notice of the incorrect banking information within seven days 
after the agency is notified that the information is incorrect);
    (9) Interest calculations are to be based on a 360 day year; and
    (10) The applicable interest rate may be obtained by calling the 
Department of Treasury's Financial Management Service (FMS) Prompt 
Payment help line at 1-800-266-9667.
    (b) Payment. Agencies will meet the following requirements in paying 
interest penalties:
    (1) Interest may be paid only after acceptance has occurred; when 
title passes to the government in a fast payment contract when title 
passing to the government constitutes acceptance for purposes of 
determining when interest may be paid; or when the payment is an interim 
payment under a cost-reimbursement service contract;
    (2) Late payment interest penalties shall be paid without regard to 
whether the vendor has requested payment of such penalty, and shall be 
accompanied by a notice stating the amount of the interest penalty, the 
number of days late and the rate used;
    (3) The invoice number or other agreed upon transaction reference 
number assigned by the vendor should be included in the notice to assist 
the vendor in reconciling the payment. Additionally, it is optional as 
to whether or not an agency includes the contract number in the notice 
to the vendor;
    (4) The temporary unavailability of funds does not relieve an agency 
from the obligation to pay these interest penalties or the additional 
penalties required under Sec.  1315.11; and
    (5) Agencies shall pay any late payment interest penalties 
(including any additional penalties required under Sec.  1315.11) under 
this part from the funds available for the administration of the program 
for which the penalty was incurred. The Prompt Payment Act does not 
authorize the appropriation of additional amounts to pay penalties.
    (c) Penalties not due. Interest penalties are not required:
    (1) When payment is delayed because of a dispute between a Federal 
agency and a vendor over the amount of the payment or other issues 
concerning compliance with the terms of a contract. Claims concerning 
disputes, and any interest that may be payable with respect to the 
period, while the dispute is being settled, will be resolved in 
accordance with the provisions in the Contract Disputes Act of 1978, (41 
U.S.C. 601 et seq.), except for interest payments required under 31 
U.S.C. 3902(h)(2);
    (2) When payments are made solely for financing purposes or in 
advance, except for interest payment required under 31 U.S.C. 
3902(h)(2);
    (3) For a period when amounts are withheld temporarily in accordance 
with the contract;
    (4) When an EFT payment is not credited to the vendor's account by 
the payment due date because of the failure of the Federal Reserve or 
the vendor's bank to do so; or
    (5) When the interest penalty is less than $1.00.

[64 FR 52586, Sept. 29, 1999, as amended at 65 FR 78405, Dec. 15, 2000]



Sec.  1315.11  Additional penalties.

    (a) Vendor entitlements. A vendor shall be entitled to an additional 
penalty payment when the vendor is owed a late payment interest penalty 
by an agency of $1.00 or more, if it:
    (1) Receives a payment dated after the payment due date which does 
not include the interest penalty also due to the vendor;
    (2) Is not paid the interest penalty by the agency within 10 days 
after the actual payment date; and
    (3) Makes a written request that the agency pay such an additional 
penalty. Such request must be postmarked, received by facsimile, or by 
electronic mail, by the 40th day after payment was made. If there is no 
postmark or if it is illegible, the request will be valid if it is 
received and annotated with the date of receipt by the agency by the

[[Page 163]]

40th day. The written request must include the following:
    (i) Specific assertion that late payment interest is due for a 
specific invoice, and request payment of all overdue late payment 
interest penalty and such additional penalty as may be required; and
    (ii) A copy of the invoice on which late payment interest was due 
but not paid and a statement that the principal has been received, and 
the date of receipt of the principle.
    (b) Maximum penalty. The additional penalty shall be equal to one 
hundred (100) percent of the original late payment interest penalty but 
must not exceed $5,000.
    (c) Minimum penalty. Regardless of the amount of the late payment 
interest penalty, the additional penalty paid shall not be less than 
$25. No additional penalty is owed, however, if the amount of the 
interest penalty is less than $1.00.
    (d) Penalty basis. The penalty is based on individual invoices. 
Where payments are consolidated for disbursing purposes, the penalty 
determinations shall be made separately for each invoice therein.
    (e) Utility payments. The additional penalty does not apply to the 
payment of utility bills where late payment penalties for these bills 
are determined through the tariff rate-setting process.



Sec.  1315.12  Payments to governmentwide commercial purchase card issuers.

    Standards for payments to government wide commercial purchase card 
issuers follow:
    (a) Payment date. All individual purchase card invoices under $2,500 
may be paid at any time, but not later than 30 days after the receipt of 
a proper invoice. Matching documents is not required before payment. The 
payment due date for invoices in the amount of $2,500 or more shall be 
determined in accordance with Sec.  1315.8. I TFM 4-4535.10 \4\ permits 
payment of the bill in full prior to verification that goods or services 
were received.
---------------------------------------------------------------------------

    \4\ See footnote 3 in Sec.  1315.7(a).
---------------------------------------------------------------------------

    (b) Disputed line items. Disputed line items do not render the 
entire invoice an improper invoice for compliance with this proposed 
regulation. Any undisputed items must be paid in accordance with 
paragraph (a) of this section.



Sec.  1315.13  Commodity Credit Corporation payments.

    As provided in Sec.  1315.1(d), the provisions of this part apply to 
payments relating to the procurement of property and services made by 
the Commodity Credit Corporation (CCC) pursuant to Section 4(h) of the 
Act of June 29, 1948 (15 U.S.C. 714b(h)) (``CCC Charter Act'') and 
payments to which producers on a farm are entitled under the terms of an 
agreement entered into pursuant to the Agricultural Act of 1949 (7 
U.S.C. 1421 et seq.) (``1949 Act''.) Such payments shall be subject to 
the following provisions:
    (a) Payment standards. Payments to producers on a farm under 
agreements entered into under the 1949 Act and payments to vendors 
providing property and services under the CCC Charter Act, shall be made 
as close as possible to the required payment date or loan closing date.
    (b) Interest penalties. An interest penalty shall be paid to vendors 
or producers if the payment has not been made by the required payment or 
loan closing date. The interest penalty shall be paid:
    (1) On the amount of payment or loan due;
    (2) For the period beginning on the first day beginning after the 
required payment or loan closing date and, except as determined 
appropriate by the CCC consistent with applicable law, ending on the 
date the amount is paid or loaned; and
    (3) Out of funds available under Section 8 of the CCC Charter Act 
(15 U.S.C. 714f).
    (c) Contract Disputes Act of 1978. Insofar as covered CCC payments 
are concerned, provisions relating to the Contract Disputes Act of 1978 
(41 U.S.C. 601 et seq.) in Sec.  1315.10(a)(5)(i) and Sec.  1315.6(a) do 
not apply.
    (d) Extended periods for payment. Notwithstanding other provisions 
of this part, the CCC may allow claims for such periods of time as are 
consistent with authorities applicable to its operations.

[[Page 164]]



Sec.  1315.14  Payments under construction contracts.

    (a) Payment standards. Agencies shall follow these standards when 
making progress payments under construction contracts:
    (1) An agency may approve a request for progress payment if the 
application meets the requirements specified in paragraph (b) of this 
section;
    (2) The certification by the prime vendor as defined in paragraph 
(b)(2) of this section is not to be construed as final acceptance of the 
subcontractor's performance;
    (3) The agency shall return any such payment request which is 
defective to the vendor within seven days after receipt, with a 
statement identifying the defect(s);
    (4) A vendor is obligated to pay interest to the Government on 
unearned amounts in its possession from:
    (i) The eighth day after receipt of funds from the agency until the 
date the vendor notifies the agency that the performance deficiency has 
been corrected, or the date the vendor reduces the amount of any 
subsequent payment request by an amount equal to the unearned amount in 
its possession, when the vendor discovers that all or a portion of a 
payment received from the agency constitutes a payment for the vendor's 
performance that fails to conform to the specifications, terms, and 
conditions of its contract with the agency, under 31 U.S.C. 3905(a); or
    (ii) The eighth day after the receipt of funds from the agency until 
the date the performance deficiency of a subcontractor is corrected, or 
the date the vendor reduces the amount of any subsequent payment request 
by an amount equal to the unearned amount in its possession, when the 
vendor discovers that all or a portion of a payment received from the 
agency would constitute a payment for the subcontractor's performance 
that fails to conform to the subcontract agreement and may be withheld, 
under 31 U.S.C. 3905(e);
    (5) Interest payment on unearned amounts to the government under 31 
U.S.C. 3905(a)(2) or 3905(e)(6), shall:
    (i) Be computed on the basis of the average bond equivalent rates of 
91-day Treasury bills auctioned at the most recent auction of such bills 
prior to the date the vendor received the unearned amount;
    (ii) Be deducted from the next available payment to the vendor; and
    (iii) Revert to the Treasury.
    (b) Required documentation. (1) Substantiation of the amount(s) 
requested shall include:
    (i) An itemization of the amounts requested related to the various 
elements of work specified in the contract;
    (ii) A listing of the amount included for work performed by each 
subcontractor under the contract;
    (iii) A listing of the total amount for each subcontract under the 
contract;
    (iv) A listing of the amounts previously paid to each subcontractor 
under the contract; and
    (v) Additional supporting data and detail in a form required by the 
contracting officer.
    (2) Certification by the prime vendor is required, to the best of 
the vendor's knowledge and belief, that:
    (i) The amounts requested are only for performance in accordance 
with the specifications, terms, and conditions of the contract;
    (ii) Payments to subcontractors and suppliers have been made from 
previous payments received under the contract, and timely payments will 
be made from the proceeds of the payment covered by the certification, 
in accordance with their subcontract agreements and the requirements of 
31 U.S.C. chapter 39; and
    (iii) The application does not include any amounts which the prime 
vendor intends to withhold or retain from a subcontractor or supplier, 
in accordance with the terms and conditions of their subcontract.
    (c) Interest penalties. (1) Agencies will pay interest on:
    (i) A progress payment request (including a monthly percentage-of-
completion progress payment or milestone payments for completed phases, 
increments, or segments of any project) that is approved as payable by 
the agency pursuant to paragraph (b) of this section, and remains unpaid 
for:
    (A) A period of more than 14 days after receipt of the payment 
request by the designated agency office; or
    (B) A longer period specified in the solicitation and/or contract if 
required,

[[Page 165]]

to afford the Government a practicable opportunity to adequately inspect 
the work and to determine the adequacy of the vendor's performance under 
the contract;
    (ii) Any amounts that the agency has retained pursuant to a prime 
contract clause providing for retaining a percentage of progress 
payments otherwise due to a vendor and that are approved for release to 
the vendor, if such retained amounts are not paid to the vendor by a 
date specified in the contract, or, in the absence of such a specified 
date, by the 30th day after final acceptance;
    (iii) Final payments, based on completion and acceptance of all work 
(including any retained amounts), and payments for partial performances 
that have been accepted by the agency, if such payments are made after 
the later of:
    (A) The 30th day after the date on which the designated agency 
office receives a proper invoice; or
    (B) The 30th day after agency acceptance of the completed work or 
services. Acceptance shall be deemed to have occurred on the effective 
date of contract settlement on a final invoice where the payment amount 
is subject to contract settlement actions.
    (2) For the purpose of computing interest penalties, acceptance 
shall be deemed to have occurred on the seventh day after work or 
services have been completed in accordance with the terms of the 
contract.



Sec.  1315.15  Grant recipients.

    Recipients of Federal assistance may pay interest penalties if so 
specified in their contracts with contractors. However, obligations to 
pay such interest penalties will not be obligations of the United 
States. Federal funds may not be used for this purpose, nor may interest 
penalties be used to meet matching requirements of federally assisted 
programs.



Sec.  1315.16  Relationship to other laws.

    (a) Contract Disputes Act of 1978 (41 U.S.C. 605). (1) A claim for 
an interest penalty (including the additional penalty for non-payment of 
interest if the vendor has complied with the requirements of Sec.  
1315.9) not paid under this part may be filed under Section 6 of the 
Contract Disputes Act.
    (2) An interest penalty under this part does not continue to accrue 
after a claim for a penalty is filed under the Contract Disputes Act or 
for more than one year. Once a claim is filed under the Contract 
Disputes Act interest penalties under this part will never accrue on the 
amounts of the claim, for any period after the date the claim was filed. 
This does not prevent an interest penalty from accruing under Section 13 
of the Contract Disputes Act after a penalty stops accruing under this 
part. Such penalty may accrue on an unpaid contract payment and on the 
unpaid penalty under this part.
    (3) This part does not require an interest penalty on a payment that 
is not made because of a dispute between the head of an agency and a 
vendor over the amount of payment or compliance with the contract. A 
claim related to such a dispute and interest payable for the period 
during which the dispute is being resolved is subject to the Contract 
Disputes Act.
    (b) Small Business Act (15 U.S.C. 644(k)). This Act has been amended 
to require that any agency with an Office of Small and Disadvantaged 
Business Utilization must assist small business concerns to obtain 
payments, late payment interest penalties, additional penalties, or 
information due to the concerns.



Sec.  1315.17  Formulas.

    (a) Rebate formula. (1) Agencies shall determine credit card payment 
dates based on an analysis of the total benefits to the Federal 
government as a whole. Specifically, agencies should compare daily basis 
points offered by the card issuer with the corresponding daily basis 
points of the government's Current Value of Funds (CVF) rate. If the 
basis points offered by the card issuer are greater than the daily basis 
points of the government'' funds, the government will maximize savings 
by paying on the earliest possible date. If the basis points offered by 
the card issuer are less than the daily basis points of the government'' 
funds, the government will minimize costs by paying on the Prompt 
Payment due

[[Page 166]]

date or the date specified in the contract.
    (2) Agencies may use a rebate spreadsheet which automatically 
calculates the net savings to the government and whether the agency 
should pay early or late. The only variables required for input to this 
spreadsheet are the CVF rate, the Maximum Discount Rate, that is, the 
rate from which daily basis points offered by the card issuer are 
derived, and the amount of debt. This spreadsheet is available for use 
on the prompt payment website at www.fms.treas.gov/prompt/index/.html.
    (3) If agencies chose not to use the spreadsheet, the following may 
be used to determine whether to pay early or late. To calculate whether 
to pay early or late, agencies must first determine the respective basis 
points. To obtain Daily Basis Points offered by card issuer, refer to 
the agency's contract with the card issuer. Use the following formula to 
calculate the average daily basis points of the CVF rate:

(CVF/360) * 100

    (4) For example: The daily basis points offered to agency X by card 
issuer Y are 1.5 basis points. That is, for every day the agency delays 
paying the card issuer the agency loses 1.5 basis points in savings. At 
a CVF of 5 percent, the daily basis points of the Current Value of Funds 
Rate are 1.4 basis points. That is, every day the agency delays paying, 
the government earns 1.4 basis points. The basis points were calculated 
using the formula:

(CVF/360) * 100
(5/360) * 100 = 1.4

    (5) Because 1.5 is greater than 1.4, the agency should pay as early 
as possible. If the basis points offered by the card issuer are less 
than the daily basis points of the government'' funds (if for instance 
the rebate equaled 1.3 basis points and the CVF was still 1.4 basis 
points or if the rebate equaled 1.5 but the CVF equaled 1.6), the 
government will minimize costs by paying as late as possible, but by the 
payment due date.
    (b) Daily simple interest formula. (1) To calculate daily simple 
interest the following formula may be used:

P(r/360*d)

Where:

P is the amount of principle or invoice amount;
r equals the Prompt Payment interest rate; and
d equals the numbers of days for which interest is being calculated.

    (2) For example, if a payment is due on April 1 and the payment is 
not made until April 11, a simple interest calculation will determine 
the amount of interest owed the vendor for the late payment. Using the 
formula above, at an invoice amount of $1,500 paid 10 days late and an 
interest rate of 6.5%, the amount of interest owed is calculated as 
follows:

$1,500 (.065/360*10) = $2.71

    (c) Monthly compounding interest formula. (1) To calculate interest 
as required in Sec.  1315.10(a)(3), the following formula may be used:

P(1+r/12) \n\*(1+(r/360*d))-P

Where:

P equals the principle or invoice amount;
r equals the interest rate;
n equals the number of months; and
d equals the number of days for which interest is being calculated.

    (2) The first part of the equation calculates compounded monthly 
interest. The second part of the equation calculates simple interest on 
any additional days beyond a monthly increment.
    (3) For example, if the amount owed is $1,500, the payment due date 
is April 1, the agency does not pay until June 15 and the applicable 
interest rate is 6 percent, interest is calculated as follows:

$1,500(1+.06/12) \2\ * (1+(0.06/360*15))-$1,500 = $18.83



Sec.  1315.18  Inquiries.

    (a) Regulation. Inquiries concerning this part may be directed in 
writing to the Department of the Treasury, Financial Management Service 
(FMS), Cash Management Policy and Planning Division, 401 14th Street, 
SW. Washington, DC 20227, (202) 874-6590, or by calling the Prompt 
Payment help line at 1-800-266-9667, by emailing questions to FMS at 
[email protected], or by completing a Prompt Payment 
inquiry

[[Page 167]]

form available at www.fms.treas.gov/prompt/inquiries.html.
    (b) Applicable interest rate. The rate is published by the Fiscal 
Service, Department of the Treasury, semiannually in the Federal 
Register on or about January 1 and July 1. The rate also may be obtained 
from the Department of Treasury's Financial Management Service (FMS) at 
1-800-266-9667. This information is also available at the FMS Prompt 
Payment Web Site at http://www.fms.treas.gov/prompt/index.html.
    (c) Agency payments. Questions concerning delinquent payments should 
be directed to the designated agency office, or the office responsible 
for issuing the payment if different from the designated agency office. 
Questions about disagreements over payment amount or timing should be 
directed to the contracting officer for resolution. Small business 
concerns may obtain additional assistance on payment issues by 
contacting the agency's Office of Small and Disadvantaged Business 
Utilization.



Sec.  1315.19  Regulatory references to OMB Circular A-125.

    This part supercedes OMB Circular A-125 (``Prompt Payment''). Until 
revised to reflect the codification in this part, regulatory references 
to Circular A-125 shall be construed as referring to this part.



Sec.  1315.20  Application of Section 1010 of the National Defense 
Authorization Act for Fiscal Year 2001.

    Section 1010 of the National Defense Authorization Act for Fiscal 
Year 2001 (Public Law 106-398, 114 Stat. 1654), as amended by section 
1007 of the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107, 115 Stat. 1012), requires an agency to pay an 
interest penalty whenever the agency makes an interim payment under a 
cost-reimbursement contract for services more than 30 days after the 
date the agency receives a proper invoice for payment from the 
contractor. This part implements Section 1010, as amended, and is 
applicable in the following manner:
    (a) This part shall apply to all interim payment requests that are 
due on or after December 15, 2000 under cost-reimbursement service 
contracts awarded before, on, or after December 15, 2000.
    (b) No interest penalty shall accrue under this part for any delay 
in payment that occurred prior to December 15, 2000.
    (c) Agencies are authorized to issue modifications to contracts, as 
necessary, to conform them to the provisions in this part implementing 
Section 1010, as amended.

[67 FR 79516, Dec. 30, 2002]



PART 1320_CONTROLLING PAPERWORK BURDENS ON THE PUBLIC--Table of Contents



Sec.
1320.1 Purpose.
1320.2 Effect.
1320.3 Definitions.
1320.4 Coverage.
1320.5 General requirements.
1320.6 Public protection.
1320.7 Agency head and Senior Official responsibilities.
1320.8 Agency collection of information responsibilities.
1320.9 Agency certifications for proposed collections of information.
1320.10 Clearance of collections of information, other than those 
          contained in proposed rules or in current rules.
1320.11 Clearance of collections of information in proposed rules.
1320.12 Clearance of collections of information in current rules.
1320.13 Emergency processing.
1320.14 Public access.
1320.15 Independent regulatory agency override authority.
1320.16 Delegation of approval authority.
1320.17 Information collection budget.
1320.18 Other authority.

Appendix A to Part 1320--Agencies With Delegated Review and Approval 
          Authority

    Authority: 31 U.S.C. Sec. 1111 and 44 U.S.C. Chs. 21, 25, 27, 29, 
31, 35.

    Source: 60 FR 44984, Aug. 29, 1995, unless otherwise noted.



Sec.  1320.1  Purpose.

    The purpose of this part is to implement the provisions of the 
Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35)(the Act) 
concerning collections of information. It is issued under the authority 
of section 3516 of the Act, which provides that ``The Director

[[Page 168]]

shall promulgate rules, regulations, or procedures necessary to exercise 
the authority provided by this chapter.'' It is designed to reduce, 
minimize and control burdens and maximize the practical utility and 
public benefit of the information created, collected, disclosed, 
maintained, used, shared and disseminated by or for the Federal 
government.



Sec.  1320.2  Effect.

    (a) Except as provided in paragraph (b) of this section, this part 
takes effect on October 1, 1995.
    (b)(1) In the case of a collection of information for which there is 
in effect on September 30, 1995, a control number issued by the Office 
of Management and Budget under 44 U.S.C. Chapter 35, the provisions of 
this Part shall take effect beginning on the earlier of:
    (i) The date of the first extension of approval for or modification 
of that collection of information after September 30, 1995; or
    (ii) The date of the expiration of the OMB control number after 
September 30, 1995.
    (2) Prior to such extension of approval, modification, or 
expiration, the collection of information shall be subject to 5 CFR part 
1320, as in effect on September 30, 1995.



Sec.  1320.3  Definitions.

    For purposes of implementing the Act and this Part, the following 
terms are defined as follows:
    (a) Agency means any executive department, military department, 
Government corporation, Government controlled corporation, or other 
establishment in the executive branch of the government, or any 
independent regulatory agency, but does not include:
    (1) The General Accounting Office;
    (2) Federal Election Commission;
    (3) The governments of the District of Columbia and the territories 
and possessions of the United States, and their various subdivisions; or
    (4) Government-owned contractor-operated facilities, including 
laboratories engaged in national defense research and production 
activities.
    (b)(1) Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency, including:
    (i) Reviewing instructions;
    (ii) Developing, acquiring, installing, and utilizing technology and 
systems for the purpose of collecting, validating, and verifying 
information;
    (iii) Developing, acquiring, installing, and utilizing technology 
and systems for the purpose of processing and maintaining information;
    (iv) Developing, acquiring, installing, and utilizing technology and 
systems for the purpose of disclosing and providing information;
    (v) Adjusting the existing ways to comply with any previously 
applicable instructions and requirements;
    (vi) Training personnel to be able to respond to a collection of 
information;
    (vii) Searching data sources;
    (viii) Completing and reviewing the collection of information; and
    (ix) Transmitting, or otherwise disclosing the information.
    (2) The time, effort, and financial resources necessary to comply 
with a collection of information that would be incurred by persons in 
the normal course of their activities (e.g., in compiling and 
maintaining business records) will be excluded from the ``burden'' if 
the agency demonstrates that the reporting, recordkeeping, or disclosure 
activities needed to comply are usual and customary.
    (3) A collection of information conducted or sponsored by a Federal 
agency that is also conducted or sponsored by a unit of State, local, or 
tribal government is presumed to impose a Federal burden except to the 
extent that the agency shows that such State, local, or tribal 
requirement would be imposed even in the absence of a Federal 
requirement.
    (c) Collection of information means, except as provided in Sec.  
1320.4, the obtaining, causing to be obtained, soliciting, or requiring 
the disclosure to an agency, third parties or the public of information 
by or for an agency by means of identical questions posed to, or 
identical reporting, recordkeeping, or disclosure requirements imposed 
on, ten or more persons, whether such collection of information is 
mandatory, voluntary, or required to obtain or retain a benefit. 
``Collection of information''

[[Page 169]]

includes any requirement or request for persons to obtain, maintain, 
retain, report, or publicly disclose information. As used in this Part, 
``collection of information'' refers to the act of collecting or 
disclosing information, to the information to be collected or disclosed, 
to a plan and/or an instrument calling for the collection or disclosure 
of information, or any of these, as appropriate.
    (1) A ``collection of information'' may be in any form or format, 
including the use of report forms; application forms; schedules; 
questionnaires; surveys; reporting or recordkeeping requirements; 
contracts; agreements; policy statements; plans; rules or regulations; 
planning requirements; circulars; directives; instructions; bulletins; 
requests for proposal or other procurement requirements; interview 
guides; oral communications; posting, notification, labeling, or similar 
disclosure requirements; telegraphic or telephonic requests; automated, 
electronic, mechanical, or other technological collection techniques; 
standard questionnaires used to monitor compliance with agency 
requirements; or any other techniques or technological methods used to 
monitor compliance with agency requirements. A ``collection of 
information'' may implicitly or explicitly include related collection of 
information requirements.
    (2) Requirements by an agency for a person to obtain or compile 
information for the purpose of disclosure to members of the public or 
the public at large, through posting, notification, labeling or similar 
disclosure requirements constitute the ``collection of information'' 
whenever the same requirement to obtain or compile information would be 
a ``collection of information'' if the information were directly 
provided to the agency. The public disclosure of information originally 
supplied by the Federal government to the recipient for the purpose of 
disclosure to the public is not included within this definition.
    (3) ``Collection of information'' includes questions posed to 
agencies, instrumentalities, or employees of the United States, if the 
results are to be used for general statistical purposes, that is, if the 
results are to be used for statistical compilations of general public 
interest, including compilations showing the status or implementation of 
Federal activities and programs.
    (4) As used in paragraph (c) of this section, ``ten or more 
persons'' refers to the persons to whom a collection of information is 
addressed by the agency within any 12-month period, and to any 
independent entities to which the initial addressee may reasonably be 
expected to transmit the collection of information during that period, 
including independent State, territorial, tribal or local entities and 
separately incorporated subsidiaries or affiliates. For the purposes of 
this definition of ``ten or more persons,'' ``persons'' does not include 
employees of the respondent acting within the scope of their employment, 
contractors engaged by a respondent for the purpose of complying with 
the collection of information, or current employees of the Federal 
government (including military reservists and members of the National 
Guard while on active duty) when acting within the scope of their 
employment, but it does include retired and other former Federal 
employees.
    (i) Any recordkeeping, reporting, or disclosure requirement 
contained in a rule of general applicability is deemed to involve ten or 
more persons.
    (ii) Any collection of information addressed to all or a substantial 
majority of an industry is presumed to involve ten or more persons.
    (d) Conduct or Sponsor. A Federal agency is considered to ``conduct 
or sponsor'' a collection of information if the agency collects the 
information, causes another agency to collect the information, contracts 
or enters into a cooperative agreement with a person to collect the 
information, or requires a person to provide information to another 
person, or in similar ways causes another agency, contractor, partner in 
a cooperative agreement, or person to obtain, solicit, or require the 
disclosure to third parties or the public of information by or for an 
agency. A collection of information undertaken by a recipient of a 
Federal grant is considered to be ``conducted or sponsored'' by an 
agency only if:

[[Page 170]]

    (1) The recipient of a grant is conducting the collection of 
information at the specific request of the agency; or
    (2) The terms and conditions of the grant require specific approval 
by the agency of the collection of information or collection procedures.
    (e) Director means the Director of OMB, or his or her designee.
    (f) Display means:
    (1) In the case of forms, questionnaires, instructions, and other 
written collections of information sent or made available to potential 
respondents (other than in an electronic format), to place the currently 
valid OMB control number on the front page of the collection of 
information;
    (2) In the case of forms, questionnaires, instructions, and other 
written collections of information sent or made available to potential 
respondents in an electronic format, to place the currently valid OMB 
control number in the instructions, near the title of the electronic 
collection instrument, or, for on-line applications, on the first screen 
viewed by the respondent;
    (3) In the case of collections of information published in 
regulations, guidelines, and other issuances in the Federal Register, to 
publish the currently valid OMB control number in the Federal Register 
(for example, in the case of a collection of information in a 
regulation, by publishing the OMB control number in the preamble or the 
regulatory text for the final rule, in a technical amendment to the 
final rule, or in a separate notice announcing OMB approval of the 
collection of information). In the case of a collection of information 
published in an issuance that is also included in the Code of Federal 
Regulations, publication of the currently valid control number in the 
Code of Federal Regulations constitutes an alternative means of 
``display.'' In the case of a collection of information published in an 
issuance that is also included in the Code of Federal Regulations, OMB 
recommends for ease of future reference that, even where an agency has 
already ``displayed'' the OMB control number by publishing it in the 
Federal Register as a separate notice or in the preamble for the final 
rule (rather than in the regulatory text for the final rule or in a 
technical amendment to the final rule), the agency also place the 
currently valid control number in a table or codified section to be 
included in the Code of Federal Regulations. For placement of OMB 
control numbers in the Code of Federal Regulations, see 1 CFR 21.35.
    (4) In other cases, and where OMB determines in advance in writing 
that special circumstances exist, to use other means to inform potential 
respondents of the OMB control number.
    (g) Independent regulatory agency means the Board of Governors of 
the Federal Reserve System, the Commodity Futures Trading Commission, 
the Consumer Product Safety Commission, the Federal Communications 
Commission, the Federal Deposit Insurance Corporation, the Federal 
Energy Regulatory Commission, the Federal Housing Finance Board, the 
Federal Maritime Commission, the Federal Trade Commission, the 
Interstate Commerce Commission, the Mine Enforcement Safety and Health 
Review Commission, the National Labor Relations Board, the Nuclear 
Regulatory Commission, the Occupational Safety and Health Review 
Commission, the Postal Rate Commission, the Securities and Exchange 
Commission, and any other similar agency designated by statute as a 
Federal independent regulatory agency or commission.
    (h) Information means any statement or estimate of fact or opinion, 
regardless of form or format, whether in numerical, graphic, or 
narrative form, and whether oral or maintained on paper, electronic or 
other media. ``Information'' does not generally include items in the 
following categories; however, OMB may determine that any specific item 
constitutes ``information'':
    (1) Affidavits, oaths, affirmations, certifications, receipts, 
changes of address, consents, or acknowledgments; provided that they 
entail no burden other than that necessary to identify the respondent, 
the date, the respondent's address, and the nature of the instrument (by 
contrast, a certification would likely involve the collection of 
``information'' if an agency conducted or sponsored it as a substitute 
for a

[[Page 171]]

collection of information to collect evidence of, or to monitor, 
compliance with regulatory standards, because such a certification would 
generally entail burden in addition to that necessary to identify the 
respondent, the date, the respondent's address, and the nature of the 
instrument);
    (2) Samples of products or of any other physical objects;
    (3) Facts or opinions obtained through direct observation by an 
employee or agent of the sponsoring agency or through nonstandardized 
oral communication in connection with such direct observations;
    (4) Facts or opinions submitted in response to general solicitations 
of comments from the public, published in the Federal Register or other 
publications, regardless of the form or format thereof, provided that no 
person is required to supply specific information pertaining to the 
commenter, other than that necessary for self-identification, as a 
condition of the agency's full consideration of the comment;
    (5) Facts or opinions obtained initially or in follow-on requests, 
from individuals (including individuals in control groups) under 
treatment or clinical examination in connection with research on or 
prophylaxis to prevent a clinical disorder, direct treatment of that 
disorder, or the interpretation of biological analyses of body fluids, 
tissues, or other specimens, or the identification or classification of 
such specimens;
    (6) A request for facts or opinions addressed to a single person;
    (7) Examinations designed to test the aptitude, abilities, or 
knowledge of the persons tested and the collection of information for 
identification or classification in connection with such examinations;
    (8) Facts or opinions obtained or solicited at or in connection with 
public hearings or meetings;
    (9) Facts or opinions obtained or solicited through nonstandardized 
follow-up questions designed to clarify responses to approved 
collections of information; and
    (10) Like items so designated by OMB.
    (i) OMB refers to the Office of Management and Budget.
    (j) Penalty includes the imposition by an agency or court of a fine 
or other punishment; a judgment for monetary damages or equitable 
relief; or the revocation, suspension, reduction, or denial of a 
license, privilege, right, grant, or benefit.
    (k) Person means an individual, partnership, association, 
corporation (including operations of government-owned contractor-
operated facilities), business trust, or legal representative, an 
organized group of individuals, a State, territorial, tribal, or local 
government or branch thereof, or a political subdivision of a State, 
territory, tribal, or local government or a branch of a political 
subdivision;
    (l) Practical utility means the actual, not merely the theoretical 
or potential, usefulness of information to or for an agency, taking into 
account its accuracy, validity, adequacy, and reliability, and the 
agency's ability to process the information it collects (or a person's 
ability to receive and process that which is disclosed, in the case of a 
third-party or public disclosure) in a useful and timely fashion. In 
determining whether information will have ``practical utility,'' OMB 
will take into account whether the agency demonstrates actual timely use 
for the information either to carry out its functions or make it 
available to third-parties or the public, either directly or by means of 
a third-party or public posting, notification, labeling, or similar 
disclosure requirement, for the use of persons who have an interest in 
entities or transactions over which the agency has jurisdiction. In the 
case of recordkeeping requirements or general purpose statistics (see 
Sec.  1320.3(c)(3)), ``practical utility'' means that actual uses can be 
demonstrated.
    (m) Recordkeeping requirement means a requirement imposed by or for 
an agency on persons to maintain specified records, including a 
requirement to:
    (1) Retain such records;
    (2) Notify third parties, the Federal government, or the public of 
the existence of such records;
    (3) Disclose such records to third parties, the Federal government, 
or the public; or

[[Page 172]]

    (4) Report to third parties, the Federal government, or the public 
regarding such records.



Sec.  1320.4  Coverage.

    (a) The requirements of this part apply to all agencies as defined 
in Sec.  1320.3(a) and to all collections of information conducted or 
sponsored by those agencies, as defined in Sec.  1320.3 (c) and (d), 
wherever conducted or sponsored, but, except as provided in paragraph 
(b) of this section, shall not apply to collections of information:
    (1) During the conduct of a Federal criminal investigation or 
prosecution, or during the disposition of a particular criminal matter;
    (2) During the conduct of a civil action to which the United States 
or any official or agency thereof is a party, or during the conduct of 
an administrative action, investigation, or audit involving an agency 
against specific individuals or entities;
    (3) By compulsory process pursuant to the Antitrust Civil Process 
Act and section 13 of the Federal Trade Commission Improvements Act of 
1980; or
    (4) During the conduct of intelligence activities as defined in 
section 3.4(e) of Executive Order No. 12333, issued December 4, 1981, or 
successor orders, or during the conduct of cryptologic activities that 
are communications security activities.
    (b) The requirements of this Part apply to the collection of 
information during the conduct of general investigations or audits 
(other than information collected in an antitrust investigation to the 
extent provided in paragraph (a)(3) of this section) undertaken with 
reference to a category of individuals or entities such as a class of 
licensees or an entire industry.
    (c) The exception in paragraph (a)(2) of this section applies during 
the entire course of the investigation, audit, or action, whether before 
or after formal charges or complaints are filed or formal administrative 
action is initiated, but only after a case file or equivalent is opened 
with respect to a particular party. In accordance with paragraph (b) of 
this section, collections of information prepared or undertaken with 
reference to a category of individuals or entities, such as a class of 
licensees or an industry, do not fall within this exception.



Sec.  1320.5  General requirements.

    (a) An agency shall not conduct or sponsor a collection of 
information unless, in advance of the adoption or revision of the 
collection of information--
    (1) The agency has--
    (i) Conducted the review required in Sec.  1320.8;
    (ii) Evaluated the public comments received under Sec.  1320.8(d) 
and Sec.  1320.11;
    (iii) Submitted to the Director, in accordance with such procedures 
and in such form as OMB may specify,
    (A) The certification required under Sec.  1320.9,
    (B) The proposed collection of information in accordance with Sec.  
1320.10, Sec.  1320.11, or Sec.  1320.12, as appropriate,
    (C) An explanation for the decision that it would not be 
appropriate, under Sec.  1320.8(b)(1), for a proposed collection of 
information to display an expiration date;
    (D) An explanation for a decision to provide for any payment or gift 
to respondents, other than remuneration of contractors or grantees;
    (E) A statement indicating whether (and if so, to what extent) the 
proposed collection of information involves the use of automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses, and an explanation for the decision;
    (F) A summary of the public comments received under Sec.  1320.8(d), 
including actions taken by the agency in response to the comments, and 
the date and page of the publication in the Federal Register of the 
notice therefor; and
    (G) Copies of pertinent statutory authority, regulations, and such 
related supporting materials as OMB may request; and
    (iv) Published, except as provided in Sec.  1320.13(d), a notice in 
the Federal Register--
    (A) Stating that the agency has made such submission; and
    (B) Setting forth--
    (1) A title for the collection of information;

[[Page 173]]

    (2) A summary of the collection of information;
    (3) A brief description of the need for the information and proposed 
use of the information;
    (4) A description of the likely respondents, including the estimated 
number of likely respondents, and proposed frequency of response to the 
collection of information;
    (5) An estimate of the total annual reporting and recordkeeping 
burden that will result from the collection of information;
    (6) Notice that comments may be submitted to OMB; and
    (7) The time period within which the agency is requesting OMB to 
approve or disapprove the collection of information if, at the time of 
submittal of a collection of information for OMB review under Sec.  
1320.10, Sec.  1320.11 or Sec.  1320.12, the agency plans to request or 
has requested OMB to conduct its review on an emergency basis under 
Sec.  1320.13; and
    (2) OMB has approved the proposed collection of information, OMB's 
approval has been inferred under Sec.  1320.10(c), Sec.  1320.11(i), or 
Sec.  1320.12(e), or OMB's disapproval has been voided by an independent 
regulatory agency under Sec.  1320.15; and
    (3) The agency has obtained from the Director a control number to be 
displayed upon the collection of information.
    (b) In addition to the requirements in paragraph (a) of this 
section, an agency shall not conduct or sponsor a collection of 
information unless:
    (1) The collection of information displays a currently valid OMB 
control number; and
    (2)(i) The agency informs the potential persons who are to respond 
to the collection of information that such persons are not required to 
respond to the collection of information unless it displays a currently 
valid OMB control number.
    (ii) An agency shall provide the information described in paragraph 
(b)(2)(i) of this section in a manner that is reasonably calculated to 
inform the public.
    (A) In the case of forms, questionnaires, instructions, and other 
written collections of information sent or made available to potential 
respondents (other than in an electronic format), the information 
described in paragraph (b)(2)(i) of this section is provided ``in a 
manner that is reasonably calculated to inform the public'' if the 
agency includes it either on the form, questionnaire or other collection 
of information, or in the instructions for such collection.
    (B) In the case of forms, questionnaires, instructions, and other 
written collections of information sent or made available to potential 
respondents in an electronic format, the information described in 
paragraph (b)(2)(i) of this section is provided ``in a manner that is 
reasonably calculated to inform the public'' if the agency places the 
currently valid OMB control number in the instructions, near the title 
of the electronic collection instrument, or, for on-line applications, 
on the first screen viewed by the respondent.
    (C) In the case of collections of information published in 
regulations, guidelines, and other issuances in the Federal Register, 
the information described in paragraph (b)(2)(i) of this section is 
provided ``in a manner that is reasonably calculated to inform the 
public'' if the agency publishes such information in the Federal 
Register (for example, in the case of a collection of information in a 
regulation, by publishing such information in the preamble or the 
regulatory text, or in a technical amendment to the regulation, or in a 
separate notice announcing OMB approval of the collection of 
information). In the case of a collection of information published in an 
issuance that is also included in the Code of Federal Regulations, 
publication of such information in the Code of Federal Regulations 
constitutes an alternative means of providing it ``in a manner that is 
reasonably calculated to inform the public.'' In the case of a 
collection of information published in an issuance that is also included 
in the Code of Federal Regulations, OMB recommends for ease of future 
reference that, even where an agency has already provided such 
information ``in a manner that is reasonably calculated to inform the 
public'' by publishing it in the Federal Register as a separate notice 
or in the preamble for the final rule (rather than in the regulatory 
text for

[[Page 174]]

the final rule or in a technical amendment to the final rule), the 
agency also publish such information along with a table or codified 
section of OMB control numbers to be included in the Code of Federal 
Regulations (see Sec.  1320.3(f)(3)).
    (D) In other cases, and where OMB determines in advance in writing 
that special circumstances exist, to use other means that are reasonably 
calculated to inform the public of the information described in 
paragraph (b)(2)(i) of this section.
    (c)(1) Agencies shall submit all collections of information, other 
than those contained in proposed rules published for public comment in 
the Federal Register or in current regulations that were published as 
final rules in the Federal Register, in accordance with the requirements 
in Sec.  1320.10. Agencies shall submit collections of information 
contained in interim final rules or direct final rules in accordance 
with the requirements of Sec.  1320.10.
    (2) Agencies shall submit collections of information contained in 
proposed rules published for public comment in the Federal Register in 
accordance with the requirements in Sec.  1320.11.
    (3) Agencies shall submit collections of information contained in 
current regulations that were published as final rules in the Federal 
Register in accordance with the requirements in Sec.  1320.12.
    (4) Special rules for emergency processing of collections of 
information are set forth in Sec.  1320.13.
    (5) For purposes of time limits for OMB review of collections of 
information, any submission properly submitted and received by OMB after 
12:00 noon will be deemed to have been received on the following 
business day.
    (d)(1) To obtain OMB approval of a collection of information, an 
agency shall demonstrate that it has taken every reasonable step to 
ensure that the proposed collection of information:
    (i) Is the least burdensome necessary for the proper performance of 
the agency's functions to comply with legal requirements and achieve 
program objectives;
    (ii) Is not duplicative of information otherwise accessible to the 
agency; and
    (iii) Has practical utility. The agency shall also seek to minimize 
the cost to itself of collecting, processing, and using the information, 
but shall not do so by means of shifting disproportionate costs or 
burdens onto the public.
    (2) Unless the agency is able to demonstrate, in its submission for 
OMB clearance, that such characteristic of the collection of information 
is necessary to satisfy statutory requirements or other substantial 
need, OMB will not approve a collection of information--
    (i) Requiring respondents to report information to the agency more 
often than quarterly;
    (ii) Requiring respondents to prepare a written response to a 
collection of information in fewer than 30 days after receipt of it;
    (iii) Requiring respondents to submit more than an original and two 
copies of any document;
    (iv) Requiring respondents to retain records, other than health, 
medical, government contract, grant-in-aid, or tax records, for more 
than three years;
    (v) In connection with a statistical survey, that is not designed to 
produce valid and reliable results that can be generalized to the 
universe of study;
    (vi) Requiring the use of a statistical data classification that has 
not been reviewed and approved by OMB;
    (vii) That includes a pledge of confidentiality that is not 
supported by authority established in statute or regulation, that is not 
supported by disclosure and data security policies that are consistent 
with the pledge, or which unnecessarily impedes sharing of data with 
other agencies for compatible confidential use; or
    (viii) Requiring respondents to submit proprietary, trade secret, or 
other confidential information unless the agency can demonstrate that it 
has instituted procedures to protect the information's confidentiality 
to the extent permitted by law.
    (e) OMB shall determine whether the collection of information, as 
submitted by the agency, is necessary for the proper performance of the 
agency's functions. In making this determination, OMB will take into 
account the criteria set forth in paragraph (d) of

[[Page 175]]

this section, and will consider whether the burden of the collection of 
information is justified by its practical utility. In addition:
    (1) OMB will consider necessary any collection of information 
specifically mandated by statute or court order, but will independently 
assess any collection of information to the extent that the agency 
exercises discretion in its implementation; and
    (2) OMB will consider necessary any collection of information 
specifically required by an agency rule approved or not acted upon by 
OMB under Sec.  1320.11 or Sec.  1320.12, but will independently assess 
any such collection of information to the extent that it deviates from 
the specifications of the rule.
    (f) Except as provided in Sec.  1320.15, to the extent that OMB 
determines that all or any portion of a collection of information is 
unnecessary, for any reason, the agency shall not engage in such 
collection or portion thereof. OMB will reconsider its disapproval of a 
collection of information upon the request of the agency head or Senior 
Official only if the sponsoring agency is able to provide significant 
new or additional information relevant to the original decision.
    (g) An agency may not make a substantive or material modification to 
a collection of information after such collection of information has 
been approved by OMB, unless the modification has been submitted to OMB 
for review and approval under this Part.
    (h) An agency should consult with OMB before using currently 
approved forms or other collections of information after the expiration 
date printed thereon (in those cases where the actual form being used 
contains an expiration date that would expire before the end of the use 
of the form).



Sec.  1320.6  Public protection.

    (a) Notwithstanding any other provision of law, no person shall be 
subject to any penalty for failing to comply with a collection of 
information that is subject to the requirements of this part if:
    (1) The collection of information does not display, in accordance 
with Sec.  1320.3(f) and Sec.  1320.5(b)(1), a currently valid OMB 
control number assigned by the Director in accordance with the Act; or
    (2) The agency fails to inform the potential person who is to 
respond to the collection of information, in accordance with Sec.  
1320.5(b)(2), that such person is not required to respond to the 
collection of information unless it displays a currently valid OMB 
control number.
    (b) The protection provided by paragraph (a) of this section may be 
raised in the form of a complete defense, bar, or otherwise to the 
imposition of such penalty at any time during the agency administrative 
process in which such penalty may be imposed or in any judicial action 
applicable thereto.
    (c) Whenever an agency has imposed a collection of information as a 
means for proving or satisfying a condition for the receipt of a benefit 
or the avoidance of a penalty, and the collection of information does 
not display a currently valid OMB control number or inform the potential 
persons who are to respond to the collection of information, as 
prescribed in Sec.  1320.5(b), the agency shall not treat a person's 
failure to comply, in and of itself, as grounds for withholding the 
benefit or imposing the penalty. The agency shall instead permit 
respondents to prove or satisfy the legal conditions in any other 
reasonable manner.
    (1) If OMB disapproves the whole of such a collection of information 
(and the disapproval is not overridden under Sec.  1320.15), the agency 
shall grant the benefit to (or not impose the penalty on) otherwise 
qualified persons without requesting further proof concerning the 
condition.
    (2) If OMB instructs an agency to make a substantive or material 
change to such a collection of information (and the instruction is not 
overridden under Sec.  1320.15), the agency shall permit respondents to 
prove or satisfy the condition by complying with the collection of 
information as so changed.
    (d) Whenever a member of the public is protected from imposition of 
a penalty under this section for failure to comply with a collection of 
information, such penalty may not be imposed by an agency directly, by 
an agency through judicial process, or by any

[[Page 176]]

other person through administrative or judicial process.
    (e) The protection provided by paragraph (a) of this section does 
not preclude the imposition of a penalty on a person for failing to 
comply with a collection of information that is imposed on the person by 
statute--e.g., 26 U.S.C. Sec.  6011(a) (statutory requirement for person 
to file a tax return), 42 U.S.C. Sec.  6938(c) (statutory requirement 
for person to provide notification before exporting hazardous waste).



Sec.  1320.7  Agency head and Senior Official responsibilities.

    (a) Except as provided in paragraph (b) of this section, each agency 
head shall designate a Senior Official to carry out the responsibilities 
of the agency under the Act and this part. The Senior Official shall 
report directly to the head of the agency and shall have the authority, 
subject to that of the agency head, to carry out the responsibilities of 
the agency under the Act and this part.
    (b) An agency head may retain full undelegated review authority for 
any component of the agency which by statute is required to be 
independent of any agency official below the agency head. For each 
component for which responsibility under the Act is not delegated to the 
Senior Official, the agency head shall be responsible for the 
performance of those functions.
    (c) The Senior Official shall head an office responsible for 
ensuring agency compliance with and prompt, efficient, and effective 
implementation of the information policies and information resources 
management responsibilities established under the Act, including the 
reduction of information collection burdens on the public.
    (d) With respect to the collection of information and the control of 
paperwork, the Senior Official shall establish a process within such 
office that is sufficiently independent of program responsibility to 
evaluate fairly whether proposed collections of information should be 
approved under this Part.
    (e) Agency submissions of collections of information for OMB review, 
and the accompanying certifications under Sec.  1320.9, may be made only 
by the agency head or the Senior Official, or their designee.



Sec.  1320.8  Agency collection of information responsibilities.

    The office established under Sec.  1320.7 shall review each 
collection of information before submission to OMB for review under this 
part.
    (a) This review shall include:
    (1) An evaluation of the need for the collection of information, 
which shall include, in the case of an existing collection of 
information, an evaluation of the continued need for such collection;
    (2) A functional description of the information to be collected;
    (3) A plan for the collection of information;
    (4) A specific, objectively supported estimate of burden, which 
shall include, in the case of an existing collection of information, an 
evaluation of the burden that has been imposed by such collection;
    (5) An evaluation of whether (and if so, to what extent) the burden 
on respondents can be reduced by use of automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology, e.g., permitting electronic submission of 
responses;
    (6) A test of the collection of information through a pilot program, 
if appropriate; and
    (7) A plan for the efficient and effective management and use of the 
information to be collected, including necessary resources.
    (b) Such office shall ensure that each collection of information:
    (1) Is inventoried, displays a currently valid OMB control number, 
and, if appropriate, an expiration date;
    (2) Is reviewed by OMB in accordance with the clearance requirements 
of 44 U.S.C. Sec.  3507; and
    (3) Informs and provides reasonable notice to the potential persons 
to whom the collection of information is addressed of--
    (i) The reasons the information is planned to be and/or has been 
collected;
    (ii) The way such information is planned to be and/or has been used 
to further the proper performance of the functions of the agency;

[[Page 177]]

    (iii) An estimate, to the extent practicable, of the average burden 
of the collection (together with a request that the public direct to the 
agency any comments concerning the accuracy of this burden estimate and 
any suggestions for reducing this burden);
    (iv) Whether responses to the collection of information are 
voluntary, required to obtain or retain a benefit (citing authority), or 
mandatory (citing authority);
    (v) The nature and extent of confidentiality to be provided, if any 
(citing authority); and
    (vi) The fact that an agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information unless 
it displays a currently valid OMB control number.
    (c)(1) An agency shall provide the information described in 
paragraphs (b)(3)(i) through (v) of this section as follows:
    (i) In the case of forms, questionnaires, instructions, and other 
written collections of information sent or made available to potential 
respondents (except in an electronic format), such information can be 
included either on the form, questionnaire or other collection of 
information, as part of the instructions for such collection, or in a 
cover letter or memorandum that accompanies the collection of 
information.
    (ii) In the case of forms, questionnaires, instructions, and other 
written collections of information sent or made available to potential 
respondents in an electronic format, such information can be included 
either in the instructions, near the title of the electronic collection 
instrument, or, for on-line applications, on the first screen viewed by 
the respondent;
    (iii) In the case of collections of information published in 
regulations, guidelines, and other issuances in the Federal Register, 
such information can be published in the Federal Register (for example, 
in the case of a collection of information in a regulation, by 
publishing such information in the preamble or the regulatory text to 
the final rule, or in a technical amendment to the final rule, or in a 
separate notice announcing OMB approval of the collection of 
information).
    (iv) In other cases, and where OMB determines in advance in writing 
that special circumstances exist, agencies may use other means to inform 
potential respondents.
    (2) An agency shall provide the information described in paragraph 
(b)(3)(vi) of this section in a manner that is reasonably calculated to 
inform the public (see Sec.  1320.5(b)(2)(ii)).
    (d)(1) Before an agency submits a collection of information to OMB 
for approval, and except as provided in paragraphs (d)(3) and (d)(4) of 
this section, the agency shall provide 60-day notice in the Federal 
Register, and otherwise consult with members of the public and affected 
agencies concerning each proposed collection of information, to solicit 
comment to:
    (i) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (ii) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information, including the validity of the 
methodology and assumptions used;
    (iii) Enhance the quality, utility, and clarity of the information 
to be collected; and
    (iv) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.
    (2) If the agency does not publish a copy of the proposed collection 
of information, together with the related instructions, as part of the 
Federal Register notice, the agency should--
    (i) Provide more than 60-day notice to permit timely receipt, by 
interested members of the public, of a copy of the proposed collection 
of information and related instructions; or
    (ii) Explain how and from whom an interested member of the public 
can request and obtain a copy without charge, including, if applicable, 
how the public can gain access to the collection of information and 
related instructions electronically on demand.

[[Page 178]]

    (3) The agency need not separately seek such public comment for any 
proposed collection of information contained in a proposed rule to be 
reviewed under Sec.  1320.11, if the agency provides notice and comment 
through the notice of proposed rulemaking for the proposed rule and such 
notice specifically includes the solicitation of comments for the same 
purposes as are listed under paragraph (d)(1) of this section.
    (4) The agency need not seek or may shorten the time allowed for 
such public comment if OMB grants an exemption from such requirement for 
emergency processing under Sec.  1320.13.



Sec.  1320.9  Agency certifications for proposed collections of information.

    As part of the agency submission to OMB of a proposed collection of 
information, the agency (through the head of the agency, the Senior 
Official, or their designee) shall certify (and provide a record 
supporting such certification) that the proposed collection of 
information--
    (a) Is necessary for the proper performance of the functions of the 
agency, including that the information to be collected will have 
practical utility;
    (b) Is not unnecessarily duplicative of information otherwise 
reasonably accessible to the agency;
    (c) Reduces to the extent practicable and appropriate the burden on 
persons who shall provide information to or for the agency, including 
with respect to small entities, as defined in the Regulatory Flexibility 
Act (5 U.S.C. 601(6)), the use of such techniques as:
    (1) Establishing differing compliance or reporting requirements or 
timetables that take into account the resources available to those who 
are to respond;
    (2) The clarification, consolidation, or simplification of 
compliance and reporting requirements; or
    (3) An exemption from coverage of the collection of information, or 
any part thereof;
    (d) Is written using plain, coherent, and unambiguous terminology 
and is understandable to those who are to respond;
    (e) Is to be implemented in ways consistent and compatible, to the 
maximum extent practicable, with the existing reporting and 
recordkeeping practices of those who are to respond;
    (f) Indicates for each recordkeeping requirement the length of time 
persons are required to maintain the records specified;
    (g) Informs potential respondents of the information called for 
under Sec.  1320.8(b)(3);
    (h) Has been developed by an office that has planned and allocated 
resources for the efficient and effective management and use of the 
information to be collected, including the processing of the information 
in a manner which shall enhance, where appropriate, the utility of the 
information to agencies and the public;
    (i) Uses effective and efficient statistical survey methodology 
appropriate to the purpose for which the information is to be collected; 
and
    (j) To the maximum extent practicable, uses appropriate information 
technology to reduce burden and improve data quality, agency efficiency 
and responsiveness to the public.



Sec.  1320.10  Clearance of collections of information, 
other than those contained in proposed rules or in current rules.

    Agencies shall submit all collections of information, other than 
those contained either in proposed rules published for public comment in 
the Federal Register (which are submitted under Sec.  1320.11) or in 
current rules that were published as final rules in the Federal Register 
(which are submitted under Sec.  1320.12), in accordance with the 
following requirements:
    (a) On or before the date of submission to OMB, the agency shall, in 
accordance with the requirements in Sec.  1320.5(a)(1)(iv), forward a 
notice to the Federal Register stating that OMB approval is being 
sought. The notice shall direct requests for information, including 
copies of the proposed collection of information and supporting 
documentation, to the agency, and shall request that comments be 
submitted to OMB within 30 days of the notice's publication. The notice 
shall direct comments to the Office of Information and Regulatory 
Affairs of OMB, Attention: Desk Officer for [name of agency]. A

[[Page 179]]

copy of the notice submitted to the Federal Register, together with the 
date of expected publication, shall be included in the agency's 
submission to OMB.
    (b) Within 60 days after receipt of the proposed collection of 
information or publication of the notice under paragraph (a) of this 
section, whichever is later, OMB shall notify the agency involved of its 
decision to approve, to instruct the agency to make a substantive or 
material change to, or to disapprove, the collection of information, and 
shall make such decision publicly available. OMB shall provide at least 
30 days for public comment after receipt of the proposed collection of 
information before making its decision, except as provided under Sec.  
1320.13. Upon approval of a collection of information, OMB shall assign 
an OMB control number and, if appropriate, an expiration date. OMB shall 
not approve any collection of information for a period longer than three 
years.
    (c) If OMB fails to notify the agency of its approval, instruction 
to make substantive or material change, or disapproval within the 60-day 
period, the agency may request, and OMB shall assign without further 
delay, an OMB control number that shall be valid for not more than one 
year.
    (d) As provided in Sec.  1320.5(b) and Sec.  1320.6(a), an agency 
may not conduct or sponsor a collection of information unless the 
collection of information displays a currently valid OMB control number 
and the agency informs potential persons who are to respond to the 
collection of information that such persons are not required to respond 
to the collection of information unless it displays a currently valid 
OMB control number.
    (e)(1) In the case of a collection of information not contained in a 
published current rule which has been approved by OMB and has a 
currently valid OMB control number, the agency shall:
    (i) Conduct the review established under Sec.  1320.8, including the 
seeking of public comment under Sec.  1320.8(d); and
    (ii) After having made a reasonable effort to seek public comment, 
but no later than 60 days before the expiration date of the OMB control 
number for the currently approved collection of information, submit the 
collection of information for review and approval under this part, which 
shall include an explanation of how the agency has used the information 
that it has collected.
    (2) The agency may continue to conduct or sponsor the collection of 
information while the submission is pending at OMB.
    (f) Prior to the expiration of OMB's approval of a collection of 
information, OMB may decide on its own initiative, after consultation 
with the agency, to review the collection of information. Such decisions 
will be made only when relevant circumstances have changed or the burden 
estimates provided by the agency at the time of initial submission were 
materially in error. Upon notification by OMB of its decision to review 
the collection of information, the agency shall submit it to OMB for 
review under this part.
    (g) For good cause, after consultation with the agency, OMB may stay 
the effectiveness of its prior approval of any collection of information 
that is not specifically required by agency rule; in such case, the 
agency shall cease conducting or sponsoring such collection of 
information while the submission is pending, and shall publish a notice 
in the Federal Register to that effect.



Sec.  1320.11  Clearance of collections of information in proposed rules.

    Agencies shall submit collections of information contained in 
proposed rules published for public comment in the Federal Register in 
accordance with the following requirements:
    (a) The agency shall include, in accordance with the requirements in 
Sec.  1320.5(a)(1)(iv) and Sec.  1320.8(d)(1) and (3), in the preamble 
to the Notice of Proposed Rulemaking a statement that the collections of 
information contained in the proposed rule, and identified as such, have 
been submitted to OMB for review under section 3507(d) of the Act. The 
notice shall direct comments to the Office of Information and Regulatory 
Affairs of OMB, Attention: Desk Officer for [name of agency].
    (b) All such submissions shall be made to OMB not later than the day 
on which the Notice of Proposed Rulemaking is published in the Federal

[[Page 180]]

Register, in such form and in accordance with such procedures as OMB may 
direct. Such submissions shall include a copy of the proposed regulation 
and preamble.
    (c) Within 60 days of publication of the proposed rule, but subject 
to paragraph (e) of this section, OMB may file public comments on 
collection of information provisions. The OMB comments shall be in the 
form of an OMB Notice of Action, which shall be sent to the Senior 
Official or agency head, or their designee, and which shall be made a 
part of the agency's rulemaking record.
    (d) If an agency submission is not in compliance with paragraph (b) 
of this section, OMB may, subject to paragraph (e) of this section, 
disapprove the collection of information in the proposed rule within 60 
days of receipt of the submission. If an agency fails to submit a 
collection of information subject to this section, OMB may, subject to 
paragraph (e) of this section, disapprove it at any time.
    (e) OMB shall provide at least 30 days after receipt of the proposed 
collection of information before submitting its comments or making its 
decision, except as provided under Sec.  1320.13.
    (f) When the final rule is published in the Federal Register, the 
agency shall explain how any collection of information contained in the 
final rule responds to any comments received from OMB or the public. The 
agency shall include an identification and explanation of any 
modifications made in the rule, or explain why it rejected the comments. 
If requested by OMB, the agency shall include OMB's comments in the 
preamble to the final rule.
    (g) If OMB has not filed public comments under paragraph (c) of this 
section, or has approved without conditions the collection of 
information contained in a rule before the final rule is published in 
the Federal Register, OMB may assign an OMB control number prior to 
publication of the final rule.
    (h) On or before the date of publication of the final rule, the 
agency shall submit the final rule to OMB, unless it has been approved 
under paragraph (g) of this section (and not substantively or materially 
modified by the agency after approval). Not later than 60 days after 
publication, but subject to paragraph (e) of this section, OMB shall 
approve, instruct the agency to make a substantive or material change 
to, or disapprove, the collection of information contained in the final 
rule. Any such instruction to change or disapprove may be based on one 
or more of the following reasons, as determined by OMB:
    (1) The agency has failed to comply with paragraph (b) of this 
section;
    (2) The agency had substantially modified the collection of 
information contained in the final rule from that contained in the 
proposed rule without providing OMB with notice of the change and 
sufficient information to make a determination concerning the modified 
collection of information at least 60 days before publication of the 
final rule; or
    (3) In cases in which OMB had filed public comments under paragraph 
(c) of this section, the agency's response to such comments was 
unreasonable, and the collection of information is unnecessary for the 
proper performance of the agency's functions.
    (i) After making such decision to approve, to instruct the agency to 
make a substantive or material change to, or disapprove, the collection 
of information, OMB shall so notify the agency. If OMB approves the 
collection of information or if it has not acted upon the submission 
within the time limits of this section, the agency may request, and OMB 
shall assign an OMB control number. If OMB disapproves or instructs the 
agency to make substantive or material change to the collection of 
information, it shall make the reasons for its decision publicly 
available.
    (j) OMB shall not approve any collection of information under this 
section for a period longer than three years. Approval of such 
collection of information will be for the full three-year period, unless 
OMB determines that there are special circumstances requiring approval 
for a shorter period.
    (k) After receipt of notification of OMB's approval, instruction to 
make a substantive or material change to, disapproval of a collection of 
information, or failure to act, the agency shall publish a notice in the 
Federal Register to inform the public of OMB's decision.

[[Page 181]]

    (l) As provided in Sec.  1320.5(b) and Sec.  1320.6(a), an agency 
may not conduct or sponsor a collection of information unless the 
collection of information displays a currently valid OMB control number 
and the agency informs potential persons who are to respond to the 
collection of information that such persons are not required to respond 
to the collection of information unless it displays a currently valid 
OMB control number.



Sec.  1320.12  Clearance of collections of information in current rules.

    Agencies shall submit collections of information contained in 
current rules that were published as final rules in the Federal Register 
in accordance with the following procedures:
    (a) In the case of a collection of information contained in a 
published current rule which has been approved by OMB and has a 
currently valid OMB control number, the agency shall:
    (1) Conduct the review established under Sec.  1320.8, including the 
seeking of public comment under Sec.  1320.8(d); and
    (2) After having made a reasonable effort to seek public comment, 
but no later than 60 days before the expiration date of the OMB control 
number for the currently approved collection of information, submit the 
collection of information for review and approval under this part, which 
shall include an explanation of how the agency has used the information 
that it has collected.
    (b)(1) In the case of a collection of information contained in a 
published current rule that was not required to be submitted for OMB 
review under the Paperwork Reduction Act at the time the collection of 
information was made part of the rule, but which collection of 
information is now subject to the Act and this part, the agency shall:
    (i) Conduct the review established under Sec.  1320.8, including the 
seeking of public comment under Sec.  1320(8)(d); and
    (ii) After having made a reasonable effort to seek public comment, 
submit the collection of information for review and approval under this 
part, which shall include an explanation of how the agency has used the 
information that it has collected.
    (2) The agency may continue to conduct or sponsor the collection of 
information while the submission is pending at OMB. In the case of a 
collection of information not previously approved, approval shall be 
granted for such period, which shall not exceed 60 days, unless extended 
by the Director for an additional 60 days, and an OMB control number 
assigned. Upon assignment of the OMB control number, and in accordance 
with Sec.  1320.3(f) and Sec.  1320.5(b), the agency shall display the 
number and inform the potential persons who are to respond to the 
collection of information that such persons are not required to respond 
to the collection of information unless it displays a currently valid 
OMB control number.
    (c) On or before the day of submission to OMB under paragraphs (a) 
or (b) of this section, the agency shall, in accordance with the 
requirements set forth in Sec.  1320.5(a)(1)(iv), forward a notice to 
the Federal Register stating that OMB review is being sought. The notice 
shall direct requests for copies of the collection of information and 
supporting documentation to the agency, and shall request that comments 
be submitted to OMB within 30 days of the notice's publication. The 
notice shall direct comments to the Office of Information and Regulatory 
Affairs of OMB, Attention: Desk Officer for [name of agency]. A copy of 
the notice submitted to the Federal Register, together with the date of 
expected publication, shall be included in the agency's submission to 
OMB.
    (d) Within 60 days after receipt of the collection of information or 
publication of the notice under paragraph (c) of this section, whichever 
is later, OMB shall notify the agency involved of its decision to 
approve, to instruct the agency to make a substantive or material change 
to, or to disapprove, the collection of information, and shall make such 
decision publicly available. OMB shall provide at least 30 days for 
public comment after receipt of the proposed collection of information 
before making its decision, except as provided under Sec.  1320.13.
    (e)(1) Upon approval of a collection of information, OMB shall 
assign an OMB control number and an expiration date. OMB shall not 
approve any collection of information for a period longer than three 
years. Approval of any collection

[[Page 182]]

of information submitted under this section will be for the full three-
year period, unless OMB determines that there are special circumstances 
requiring approval for a shorter period.
    (2) If OMB fails to notify the agency of its approval, instruction 
to make substantive or material change, or disapproval within the 60-day 
period, the agency may request, and OMB shall assign without further 
delay, an OMB control number that shall be valid for not more than one 
year.
    (3) As provided in Sec.  1320.5(b) and Sec.  1320.6(a), an agency 
may not conduct or sponsor a collection of information unless the 
collection of information displays a currently valid OMB control number 
and the agency informs potential persons who are to respond to the 
collection of information that such persons are not required to respond 
to the collection of information unless it displays a currently valid 
OMB control number.
    (f)(1) If OMB disapproves a collection of information contained in 
an existing rule, or instructs the agency to make a substantive or 
material change to a collection of information contained in an existing 
rule, OMB shall:
    (i) Publish an explanation thereof in the Federal Register; and
    (ii) Instruct the agency to undertake a rulemaking within a 
reasonable time limited to consideration of changes to the collection of 
information contained in the rule and thereafter to submit the 
collection of information for approval or disapproval under Sec.  
1320.10 or Sec.  1320.11, as appropriate; and
    (iii) Extend the existing approval of the collection of information 
(including an interim approval granted under paragraph (b) of this 
section) for the duration of the period required for consideration of 
proposed changes, including that required for OMB approval or 
disapproval of the collection of information under Sec.  1320.10 or 
Sec.  1320.11, as appropriate.
    (2) Thereafter, the agency shall, within a reasonable period of time 
not to exceed 120 days, undertake such procedures as are necessary in 
compliance with the Administrative Procedure Act and other applicable 
law to amend or rescind the collection of information, and shall notify 
the public through the Federal Register. Such notice shall identify the 
proposed changes in the collections of information and shall solicit 
public comment on retention, change, or rescission of such collections 
of information. If the agency employs notice and comment rulemaking 
procedures for amendment or rescission of the collection of information, 
publication of the above in the Federal Register and submission to OMB 
shall initiate OMB clearance procedures under section 3507(d) of the Act 
and Sec.  1320.11. All procedures shall be completed within a reasonable 
period of time to be determined by OMB in consultation with the agency.
    (g) OMB may disapprove, in whole or in part, any collection of 
information subject to the procedures of this section, if the agency:
    (1) Has refused within a reasonable time to comply with an OMB 
instruction to submit the collection of information for review;
    (2) Has refused within a reasonable time to initiate procedures to 
change the collection of information; or
    (3) Has refused within a reasonable time to publish a final rule 
continuing the collection of information, with such changes as may be 
appropriate, or otherwise complete the procedures for amendment or 
rescission of the collection of information.
    (h)(1) Upon disapproval by OMB of a collection of information 
subject to this section, except as provided in paragraph (f)(1)(iii) of 
this section, the OMB control number assigned to such collection of 
information shall immediately expire, and no agency shall conduct or 
sponsor such collection of information. Any such disapproval shall 
constitute disapproval of the collection of information contained in the 
Notice of Proposed Rulemaking or other submissions, and also of the 
preexisting information collection instruments directed at the same 
collection of information and therefore constituting essentially the 
same collection of information.
    (2) The failure to display a currently valid OMB control number for 
a collection of information contained in a current rule, or the failure 
to inform the potential persons who are to respond to the collection of 
information that such

[[Page 183]]

persons are not required to respond to the collection of information 
unless it displays a currently valid OMB control number, does not, as a 
legal matter, rescind or amend the rule; however, such absence will 
alert the public that either the agency has failed to comply with 
applicable legal requirements for the collection of information or the 
collection of information has been disapproved, and that therefore the 
portion of the rule containing the collection of information has no 
legal force and effect and the public protection provisions of 44 U.S.C. 
3512 apply.
    (i) Prior to the expiration of OMB's approval of a collection of 
information in a current rule, OMB may decide on its own initiative, 
after consultation with the agency, to review the collection of 
information. Such decisions will be made only when relevant 
circumstances have changed or the burden estimates provided by the 
agency at the time of initial submission were materially in error. Upon 
notification by OMB of its decision to review the collection of 
information, the agency shall submit it to OMB for review under this 
Part.



Sec.  1320.13  Emergency processing.

    An agency head or the Senior Official, or their designee, may 
request OMB to authorize emergency processing of submissions of 
collections of information.
    (a) Any such request shall be accompanied by a written determination 
that:
    (1) The collection of information:
    (i) Is needed prior to the expiration of time periods established 
under this Part; and
    (ii) Is essential to the mission of the agency; and
    (2) The agency cannot reasonably comply with the normal clearance 
procedures under this part because:
    (i) Public harm is reasonably likely to result if normal clearance 
procedures are followed;
    (ii) An unanticipated event has occurred; or
    (iii) The use of normal clearance procedures is reasonably likely to 
prevent or disrupt the collection of information or is reasonably likely 
to cause a statutory or court ordered deadline to be missed.
    (b) The agency shall state the time period within which OMB should 
approve or disapprove the collection of information.
    (c) The agency shall submit information indicating that it has taken 
all practicable steps to consult with interested agencies and members of 
the public in order to minimize the burden of the collection of 
information.
    (d) The agency shall set forth in the Federal Register notice 
prescribed by Sec.  1320.5(a)(1)(iv), unless waived or modified under 
this section, a statement that it is requesting emergency processing, 
and the time period stated under paragraph (b) of this section.
    (e) OMB shall approve or disapprove each such submission within the 
time period stated under paragraph (b) of this section, provided that 
such time period is consistent with the purposes of this Act.
    (f) If OMB approves the collection of information, it shall assign a 
control number valid for a maximum of 90 days after receipt of the 
agency submission.



Sec.  1320.14  Public access.

    (a) In order to enable the public to participate in and provide 
comments during the clearance process, OMB will ordinarily make its 
paperwork docket files available for public inspection during normal 
business hours. Notwithstanding other provisions of this Part, and to 
the extent permitted by law, requirements to publish public notices or 
to provide materials to the public may be modified or waived by the 
Director to the extent that such public participation in the approval 
process would defeat the purpose of the collection of information; 
jeopardize the confidentiality of proprietary, trade secret, or other 
confidential information; violate State or Federal law; or substantially 
interfere with an agency's ability to perform its statutory obligations.
    (b) Agencies shall provide copies of the material submitted to OMB 
for review promptly upon request by any person.
    (c) Any person may request OMB to review any collection of 
information

[[Page 184]]

conducted by or for an agency to determine, if, under this Act and this 
part, a person shall maintain, provide, or disclose the information to 
or for the agency. Unless the request is frivolous, OMB shall, in 
coordination with the agency responsible for the collection of 
information:
    (1) Respond to the request within 60 days after receiving the 
request, unless such period is extended by OMB to a specified date and 
the person making the request is given notice of such extension; and
    (2) Take appropriate remedial action, if necessary.



Sec.  1320.15  Independent regulatory agency override authority.

    (a) An independent regulatory agency which is administered by two or 
more members of a commission, board, or similar body, may by majority 
vote void:
    (1) Any disapproval, instruction to such agency to make material or 
substantive change to, or stay of the effectiveness of OMB approval of, 
any collection of information of such agency; or
    (2) An exercise of authority under Sec.  1320.10(g) concerning such 
agency.
    (b) The agency shall certify each vote to void such OMB action to 
OMB, and explain the reasons for such vote. OMB shall without further 
delay assign an OMB control number to such collection of information, 
valid for the length of time requested by the agency, up to three years, 
to any collection of information as to which this vote is exercised. No 
override shall become effective until the independent regulatory agency, 
as provided in Sec.  1320.5(b) and Sec.  1320.6(2), has displayed the 
OMB control number and informed the potential persons who are to respond 
to the collection of information that such persons are not required to 
respond to the collection of information unless it displays a currently 
valid OMB control number.



Sec.  1320.16  Delegation of approval authority.

    (a) OMB may, after complying with the notice and comment procedures 
of the Administrative Procedure Act, delegate OMB review of some or all 
of an agency's collections of information to the Senior Official, or to 
the agency head with respect to those components of the agency for which 
he or she has not delegated authority.
    (b) No delegation of review authority shall be made unless the 
agency demonstrates to OMB that the Senior Official or agency head to 
whom the authority would be delegate:
    (1) Is sufficiently independent of program responsibility to 
evaluate fairly whether proposed collections of information should be 
approved;
    (2) Has sufficient resources to carry out this responsibility 
effectively; and
    (3) Has established an agency review process that demonstrates the 
prompt, efficient, and effective performance of collection of 
information review responsibilities.
    (c) OMB may limit, condition, or rescind, in whole or in part, at 
any time, such delegations of authority, and reserves the right to 
review any individual collection of information, or part thereof, 
conducted or sponsored by an agency, at any time.
    (d) Subject to the provisions of this part, and in accordance with 
the terms and conditions of each delegation as specified in appendix A 
to this part, OMB delegates review and approval authority to the 
following agencies:
    (1) Board of Governors of the Federal Reserve System; and
    (2) Managing Director of the Federal Communications Commission.



Sec.  1320.17  Information collection budget.

    Each agency's Senior Official, or agency head in the case of any 
agency for which the agency head has not delegated responsibility under 
the Act for any component of the agency to the Senior Official, shall 
develop and submit to OMB, in such form, at such time, and in accordance 
with such procedures as OMB may prescribe, an annual comprehensive 
budget for all collections of information from the public to be 
conducted in the succeeding twelve months. For good cause, OMB may 
exempt any agency from this requirement.

[[Page 185]]



Sec.  1320.18  Other authority.

    (a) OMB shall determine whether any collection of information or 
other matter is within the scope of the Act, or this Part.
    (b) In appropriate cases, after consultation with the agency, OMB 
may initiate a rulemaking proceeding to determine whether an agency's 
collection of information is consistent with statutory standards. Such 
proceedings shall be in accordance with the informal rulemaking 
procedures of the Administrative Procedure Act.
    (c) Each agency is responsible for complying with the information 
policies, principles, standards, and guidelines prescribed by OMB under 
this Act.
    (d) To the extent permitted by law, OMB may waive any requirements 
contained in this part.
    (e) Nothing in this part shall be interpreted to limit the authority 
of OMB under this Act, or any other law. Nothing in this part or this 
Act shall be interpreted as increasing or decreasing the authority of 
OMB with respect to the substantive policies and programs of the 
agencies.



    Sec. Appendix A to Part 1320--Agencies With Delegated Review and 
                           Approval Authority

         1. The Board of Governors of the Federal Reserve System

    (a) Authority to review and approve collection of information 
requests, collection of information requirements, and collections of 
information in current rules is delegated to the Board of Governors of 
the Federal Reserve System.
    (1) This delegation does not include review and approval authority 
over any new collection of information or any modification to an 
existing collection of information that:
    (i) Is proposed to be collected as a result of a requirement or 
other mandate of the Federal Financial Institutions Examination Council, 
or other Federal executive branch entities with authority to require the 
Board to conduct or sponsor a collection of information.
    (ii) Is objected to by another Federal agency on the grounds that 
agency requires information currently collected by the Board, that the 
currently collected information is being deleted from the collection, 
and the deletion will have a serious adverse impact on the agency's 
program, provided that such objection is certified to OMB by the head of 
the Federal agency involved, with a copy to the Board, before the end of 
the comment period specified by the Board on the Federal Register 
notices specified in paragraph (1)(3)(i) of this section 1.
    (iii) Would cause the burden of the information collections 
conducted or sponsored by the Board to exceed by the end of the fiscal 
year the Information Collection Budget allowance set by the Board and 
OMB for the fiscal year-end.
    (2) The Board may ask that OMB review and approve collections of 
information covered by this delegation.
    (3) In exercising delegated authority, the Board will:
    (i) Provide the public, to the extent possible and appropriate, with 
reasonable opportunity to comment on collections of information under 
review prior to taking final action approving the collection. Reasonable 
opportunity for public comment will include publishing a notice in the 
Federal Register informing the public of the proposed collection of 
information, announcing the beginning of a 60-day public comment period, 
and the availability of copies of the ``clearance package,'' to provide 
the public with the opportunity to comment. Such Federal Register 
notices shall also advise the public that they may also send a copy of 
their comments to the Federal Reserve Board and to the OMB/OIRA Desk 
Officer.
    (A) Should the Board determine that a new collection of information 
or a change in an existing collection must be instituted quickly and 
that public participation in the approval process would defeat the 
purpose of the collection or substantially interfere with the Board's 
ability to perform its statutory obligation, the Board may temporarily 
approve of the collection of information for a period not to exceed 90 
days without providing opportunity for public comment.
    (B) At the earliest practical date after approving the temporary 
extension to the collection of information, the Board will publish a 
Federal Register notice informing the public of its approval of the 
collection of information and indicating why immediate action was 
necessary. In such cases, the Board will conduct a normal delegated 
review and publish a notice in the Federal Register soliciting public 
comment on the intention to extend the collection of information for a 
period not to exceed three years.
    (ii) Provide the OMB/OIRA Desk Officer for the Federal Reserve Board 
with a copy of the Board's Federal Register notice not later than the 
day the Board files the notice with the Office of the Federal Register.
    (iii) Assure that approved collections of information are reviewed 
not less frequently than once every three years, and that such reviews 
are normally conducted before the expiration date of the prior approval. 
Where

[[Page 186]]

the review has not been completed prior to the expiration date, the 
Board may extend the report, for up to three months, without public 
notice in order to complete the review and consequent revisions, if any. 
There may also be other circumstances in which the Board determines that 
a three-month extension without public notice is appropriate.
    (iv) Take every reasonable step to conduct the review established 
under 5 CFR 1320.8, including the seeking of public comment under 5 CFR 
1320.8(d). In determining whether to approve a collection of 
information, the Board will consider all comments received from the 
public and other agencies. The Board will not approve a collection of 
information that it determines does not satisfy the guidelines set forth 
in 5 CFR 1320.5(d)(2), unless it determines that departure from these 
guidelines is necessary to satisfy statutory requirements or other 
substantial need.
    (v)(A) Assure that each approved collection of information displays, 
as required by 5 CFR 1320.6, a currently valid OMB control number and 
the fact that a person is not required to respond to a collection of 
information unless it displays a currently valid OMB control number.
    (B) Assure that all collections of information, except those 
contained in regulations, display the expiration date of the approval, 
or, in case the expiration date has been omitted, explain the decision 
that it would not be appropriate, under 5 CFR 1320.5(a)(1)(iii)(C), for 
a proposed collection of information to display an expiration date.
    (C) Assure that each collection of information, as required by 5 CFR 
1320.8(b)(3), informs and provides fair notice to the potential 
respondents of why the information is being collected; the way in which 
such information is to be used; the estimated burden; whether responses 
are voluntary, required to obtain or retain a benefit, or mandatory; the 
confidentiality to be provided; and the fact that an agency may not 
conduct or sponsor, and the respondent is not required to respond to, a 
collection of information unless it displays a currently valid OMB 
control number.
    (vi) Assure that each approved collection of information, together 
with a completed form OMB 83-I, a supporting statement, a copy of each 
comment received from the public and other agencies in response to the 
Board's Federal Register notice or a summary of these comments, the 
certification required by 5 CFR 1320.9, and a certification that the 
Board has approved of the collection of information in accordance with 
the provisions of this delegation is transmitted to OMB for 
incorporation into OMB's public docket files. Such transmittal shall be 
made as soon as practical after the Board has taken final action 
approving the collection. However, no collection of information may be 
instituted until the Board has delivered this transmittal to OMB.
    (b) OMB will:
    (1) Provide the Board in advance with a block of control numbers 
which the Board will assign in sequential order to and display on, new 
collections of information.
    (2) Provide a written notice of action to the Board indicating that 
the Board approvals of collections of information that have been 
received by OMB and incorporated into OMB's public docket files and an 
inventory of currently approved collections of information.
    (3) Review any collection of information referred by the Board in 
accordance with the provisions of section 1(a)(2) of this Appendix.
    (c) OMB may review the Board's paperwork review process under the 
delegation. The Board will cooperate in carrying out such a review. The 
Board will respond to any recommendations resulting from such review 
and, if it finds the recommendations to be appropriate, will either 
accept the recommendations or propose an alternative approach to achieve 
the intended purpose.
    (d) This delegation may, as provided by 5 CFR 1320.16(c), be 
limited, conditioned, or rescinded, in whole or in part at any time. OMB 
will exercise this authority only in unusual circumstances and, in those 
rare instances, will do so, subject to the provisions of 5 CFR 
1320.10(f) and 1320.10(g), prior to the expiration of the time period 
set for public comment in the Board's Federal Register notices and 
generally only if:
    (1) Prior to the commencement of a Board review (e.g., during the 
review for the Information Collection Budget). OMB has notified the 
Board that it intends to review a specific new proposal for the 
collection of information or the continued use (with or without 
modification) of an existing collection;
    (2) There is substantial public objection to a proposed information 
collection: or
    (3) OMB determines that a substantially inadequate and inappropriate 
lead time has been provided between the final announcement date of the 
proposed requirement and the first date when the information is to be 
submitted or disclosed. When OMB exercises this authority it will 
consider that the period of its review began the date that OMB received 
the Federal Register notice provided for in section 1(a)(3)(i) of this 
Appendix.
    (e) Where OMB conducts a review of a Board information collection 
proposal under section 1(a)(1), 1(a)(2), or 1(d) of this Appendix, the 
provisions of 5 CFR 1320.13 continue to apply.

    2. The Managing Director of the Federal Communications Commission

    (a) Authority to review and approve currently valid (OMB-approved) 
collections of

[[Page 187]]

information, including collections of information contained in existing 
rules, that have a total annual burden of 5,000 hours or less and a 
burden of less than 500 hours per respondent is delegated to the 
Managing Director of the Federal Communications Commission.
    (1) This delegation does not include review and approval authority 
over any new collection of information, any collections whose approval 
has lapsed, any substantive or material modification to existing 
collections, any reauthorization of information collections employing 
statistical methods, or any information collections that exceed a total 
annual burden of 5,000 hours or an estimated burden of 500 hours per 
respondent.
    (2) The Managing Director may ask that OMB review and approve 
collections of information covered by the delegation.
    (3) In exercising delegated authority, the Managing Director will:
    (i) Provide the public, to the extent possible and appropriate, with 
reasonable opportunity to comment on collections of information under 
review prior to taking final action on reauthorizing an existing 
collection. Reasonable opportunity for public comment will include 
publishing a notice in the Federal Register and an FCC Public Notice 
informing the public that a collection of information is being extended 
and announcing the beginning of a 60-day comment period, notifying the 
public of the ``intent to extend an information collection,'' and 
providing the public with the opportunity to comment on the need for the 
information, its practicality, the accuracy of the agency's burden 
estimate, and on ways to minimize burden, including the use of 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses. Such notices shall advise the public 
that they may also send a copy of their comments to the OMB/Office of 
Information and Regulatory Affairs desk officer for the Commission.
    (A) Should the Managing Director determine that a collection of 
information that falls within the scope of this delegation must be 
reauthorized quickly and that public participation in the 
reauthorization process interferes with the Commission's ability to 
perform its statutory obligation, the Managing Director may temporarily 
reauthorize the extension of an information collection, for a period not 
to exceed 90 days, without providing opportunity for public comment.
    (B) At the earliest practical date after granting this temporary 
extension to an information collection, the Managing Director will 
conduct a normal delegated review and publish a Federal Register notice 
soliciting public comment on its intention to extend the collection of 
information for a period not to exceed three years.
    (ii) Assure that approved collections of information are reviewed 
not less frequently than once every three years and that such reviews 
are conducted before the expiration date of the prior approval. When the 
review is not completed prior to the expiration date, the Managing 
Director will submit the lapsed information collection to OMB for review 
and reauthorization.
    (iii) Assure that each reauthorized collection of information 
displays an OMB control number and, except for those contained in 
regulations or specifically designated by OMB, displays the expiration 
date of the approval.
    (iv) Inform and provide fair notice to the potential respondents, as 
required by 5 CFR 1320.8(b)(3), of why the information is being 
collected; the way in which such information is to be used; the 
estimated burden; whether responses are voluntary, required, required to 
obtain or retain a benefit, or mandatory; the confidentiality to be 
provided; and the fact that an agency may not conduct or sponsor, and 
the respondent is not required to respond to, a collection of 
information unless it displays a currently valid OMB control number.
    (v) Transmit to OMB for incorporation into OMB's public docket 
files, a report of delegated approval certifying that the Managing 
Director has reauthorized each collection of information in accordance 
with the provisions of this delegation. The Managing Director shall also 
make the certification required by 5 CFR 1320.9, e.g., that the approved 
collection of information reduces to the extent practicable and 
appropriate, the burden on respondents, including, for small business, 
local government, and other small entities, the use of the techniques 
outlined in the Regulatory Flexibility Act. Such transmittals shall be 
made no later than 15 days after the Managing Director has taken final 
action reauthorizing the extension of an information collection.
    (vi) Ensure that the personnel in the Commission's functional 
bureaus and offices responsible for managing information collections 
receive periodic training on procedures related to meeting the 
requirements of this part and the Act.
    (b) OMB will:
    (1) Provide notice to the Commission acknowledging receipt of the 
report of delegated approval and its incorporation into OMB's public 
docket files and inventory of currently approved collections of 
information.
    (2) Act upon any request by the Commission to review a collection of 
information referred by the Commission in accordance with the provisions 
of section 2(a)(2) of this appendix.
    (3) Periodically assess, at its discretion, the Commission's 
paperwork review process as administered under the delegation. The

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Managing Director will cooperate in carrying out such an assessment. The 
Managing Director will respond to any recommendations resulting from 
such a review and, if it finds the recommendations to be appropriate, 
will either accept the recommendation or propose an alternative approach 
to achieve the intended purpose.
    (c) This delegation may, as provided by 5 CFR 1320.16(c), be 
limited, conditioned, or rescinded, in whole or in part at any time. OMB 
will exercise this authority only in unusual circumstances.

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 SUBCHAPTER C_JOINT REGULATIONS WITH THE OFFICE OF PERSONNEL MANAGEMENT





PART 1330_HUMAN RESOURCES MANAGEMENT--Table of Contents



Subparts A-C [Reserved]

     Subpart D_Performance Appraisal Certification for Pay Purposes

Sec.
1330.401 Purpose.
1330.402 Definitions.
1330.403 System certification.
1330.404 Certification criteria.
1330.405 Procedures for certifying agency appraisal systems.

    Authority: 5 U.S.C. 5307(d).

    Source: 69 FR 45550, 45551, July 29, 2004, unless otherwise noted.

Subparts A-C [Reserved]



     Subpart D_Performance Appraisal Certification for Pay Purposes

    Note to subpart D: Regulations identical to this subpart appear at 5 
CFR part 430, subpart D.



Sec.  1330.401  Purpose.

    (a) This subpart implements 5 U.S.C. 5307(d), as added by section 
1322 of the Chief Human Capital Officers Act of 2002 (Title XIII of 
Public Law 107-296, the Homeland Security Act of 2002; November 25, 
2002), which provides a higher aggregate limitation on pay for certain 
members of the Senior Executive Service (SES) under 5 U.S.C. 5382 and 
5383 and employees in senior-level (SL) and scientific or professional 
(ST) positions paid under 5 U.S.C. 5376. In addition, this subpart is 
necessary to administer rates of basic pay for members of the SES under 
5 U.S.C. 5382, as amended by section 1125 of the National Defense 
Authorization Act for Fiscal Year 2004. The regulations in this subpart 
strengthen the application of pay-for-performance principles to senior 
executives and senior professionals. Specifically, the statutory 
provisions authorize an agency to apply a higher maximum rate of basic 
pay for senior executives (consistent with 5 CFR part 534, subpart D, 
when effective) and apply a higher aggregate limitation on pay 
(consistent with 5 CFR part 530, subpart B) to its senior employees, but 
only after OPM, with OMB concurrence, has certified that the design and 
application of the agency's appraisal systems for these employees make 
meaningful distinctions based on relative performance. This subpart 
establishes the certification criteria and procedures that OPM will 
apply in considering agency requests for such certification.
    (b) Senior executives generally may receive an annual rate of basic 
pay up to the rate for level III of the Executive Schedule under 5 
U.S.C. 5382 and 5 CFR part 534, subpart D, when effective. Senior 
employees generally may receive total compensation in a calendar year up 
to the rate for level I of the Executive Schedule under 5 U.S.C. 5307(a) 
and 5 CFR 530.203(a). Only employees covered by an appraisal system that 
OPM, with OMB concurrence, certifies under this subpart are eligible for 
a maximum annual rate of basic pay for senior executives up to the rate 
for level II of the Executive Schedule (consistent with 5 U.S.C. 5382 
and 5 CFR part 534, subpart D, when effective) and a higher aggregate 
pay limitation equivalent to the total annual compensation payable to 
the Vice President (consistent with 5 U.S.C. 5307(d) and 5 CFR 
530.203(b)).



Sec.  1330.402  Definitions.

    In this subpart--
    Appraisal system means the policies, practices, and procedures an 
agency establishes under 5 U.S.C. chapter 43 and 5 CFR part 430, 
subparts B and C, or other applicable legal authority, for planning, 
monitoring, developing, evaluating, and rewarding employee performance. 
This includes appraisal systems and appraisal programs as defined at 
Sec.  430.203 and performance management systems as defined at Sec.  
430.303.
    GPRA means the Government Performance and Results Act of 1993.

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    OMB means the Office of Management and Budget.
    OPM means the Office of Personnel Management.
    Outstanding performance means performance that substantially exceeds 
the normally high performance expected of any senior employee, as 
evidenced by exceptional accomplishments or contributions to the 
agency's performance.
    Performance evaluation means the comparison of the actual 
performance of senior employees against their performance expectations 
and may take into account their contribution to agency performance, 
where appropriate.
    Performance expectations means critical and other performance 
elements and performance requirements that constitute the senior 
executive performance plans (as defined in Sec.  430.303) established 
for senior executives, the performance elements and standards that 
constitute the performance plans (as defined in Sec.  430.203) 
established for senior professionals, or other appropriate means 
authorized under performance appraisal systems not covered by 5 U.S.C. 
chapter 43 for communicating what a senior employee is expected to do 
and the manner in which he/she is expected to do it, and may include 
contribution to agency performance, where appropriate.
    Program performance measures means results-oriented measures of 
performance, whether at the agency, component, or function level, which 
include, for example, measures under the Government Performance and 
Results Act.
    PRB means Performance Review Board, as described at Sec.  430.310.
    Relative performance means the performance of a senior employee with 
respect to the performance of other senior employees, including their 
contribution to agency performance, where appropriate, as determined by 
the application of a certified appraisal system.
    Senior employee means a senior executive or a senior professional.
    Senior executive means a member of the Senior Executive Service 
(SES) paid under 5 U.S.C. 5383.
    Senior professional means an employee in a senior-level (SL) or 
scientific or professional position (ST) paid under 5 U.S.C. 5376.



Sec.  1330.403  System certification.

    (a) The performance appraisal system(s) covering senior employees 
must be certified by OPM, with OMB concurrence, as making meaningful 
distinctions based on relative performance before an agency may apply a 
maximum annual rate of basic pay for senior executives equal to the rate 
for level II of the Executive Schedule or apply an annual aggregate 
limitation on payments to senior employees equal to the salary of the 
Vice President under 5 U.S.C. 5307(d)). OPM, with OMB concurrence, will 
certify an agency's appraisal system(s) only when a review of that 
system's design, application, and administration reveals that the agency 
meets the certification criteria established in Sec.  1330.404 and has 
followed the procedures for certifying agency appraisal systems in Sec.  
1330.405.
    (b) Except as provided in paragraph (c) of this section, agencies 
subject to 5 U.S.C. chapter 43 and 5 CFR part 430 seeking certification 
of their appraisal systems must submit systems that have been approved 
by OPM under Sec.  430.312 or Sec.  430.210, as applicable. In some 
agencies, the performance appraisal system(s) covers employees in many 
organizations and/or components, and their ability to meet the 
certification criteria in Sec.  1330.404 may vary significantly. In such 
cases, an agency may establish and/or submit separate performance 
appraisal systems for each of these distinct organizations and/or 
components to ensure timely certification of those performance appraisal 
system(s) that meet the criteria. New appraisal systems established 
under 5 CFR part 430, subpart B or C, as applicable based on the 
employees covered, must be approved by OPM.
    (c) When an agency establishes a new appraisal system for the 
purpose of seeking certification under this subpart, the agency may 
submit that system for certification even if it has not yet been 
approved by OPM under Sec.  430.312 or Sec.  430.210, as applicable. OPM 
will certify, with OMB concurrence, only those systems that OPM 
determines meet the approval requirements

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of 5 CFR part 430, subpart B or C, as applicable.
    (d) An agency must establish an appraisal system(s), as defined in 
Sec.  1330.402, for its senior professionals that meets the requirements 
of 5 CFR part 430, subpart B, and is separate from the system(s) 
established to cover its SES members under 5 CFR part 430, subpart C. 
For the purpose of certification under this subpart, such senior 
professional appraisal system(s) must meet the certification criteria 
set forth in Sec.  1330.404. At its discretion, an agency may include 
system features in its senior professional appraisal system(s) that are 
the same as, or similar to, the features of its SES appraisal system(s), 
as appropriate, including procedures that correspond to the higher level 
review procedures under Sec.  430.308(b) and PRB reviews of summary 
ratings under Sec.  430.308(c).
    (e) For agencies subject to 5 U.S.C. chapter 43 and 5 CFR part 430, 
OPM approval of the agency performance appraisal system(s) is a 
prerequisite to certification. Agencies not subject to the appraisal 
provisions of 5 U.S.C. chapter 43 and 5 CFR part 430 and which are 
seeking certification of their appraisal system(s) under this subpart 
must submit appropriate documentation to demonstrate that each system 
complies with the appropriate legal authority that governs the 
establishment, application, and administration of that system.



Sec.  1330.404  Certification criteria.

    (a) To be certified, an agency's applicable appraisal system(s) for 
senior executives or senior professionals must make meaningful 
distinctions based on relative performance and meet the other 
requirements of 5 U.S.C. chapter 43, as applicable, in addition to the 
particular criterion cited here (i.e., consultation). Such system(s) 
must provide for the following:
    (1) Alignment, so that the performance expectations for individual 
senior employees derive from, and clearly link to, the agency's mission, 
GPRA strategic goals, program and policy objectives, and/or annual 
performance plans and budget priorities;
    (2) Consultation, so that the performance expectations for senior 
employees meet the requirements of 5 CFR part 430, subparts B and C, as 
applicable, and/or other applicable legal authority; are developed with 
the input and involvement of the individual senior employees who are 
covered thereby; and are communicated to them at the beginning of the 
applicable appraisal period, and/or at appropriate times thereafter;
    (3) Results, so that the performance expectations for individual 
senior employees apply to their respective areas of responsibility; 
reflect expected agency and/or organizational outcomes and outputs, 
performance targets or metrics, policy/program objectives, and/or 
milestones; identify specific programmatic crosscutting, external, and 
partnership-oriented goals or objectives, as applicable; and are stated 
in terms of observable, measurable, and/or demonstrable performance;
    (4) Balance, so that in addition to expected results, the 
performance expectations for individual senior employees include 
appropriate measures or indicators of employee and/or customer/
stakeholder feedback; quality, quantity, timeliness, and cost 
effectiveness, as applicable; and those technical, leadership and/or 
managerial competencies or behaviors that contribute to and are 
necessary to distinguish outstanding performance;
    (5) Appropriate assessments of the agency's performance--overall and 
with respect to each of its particular missions, components, programs, 
policy areas, and support functions--such as reports of the agency's 
GPRA goals, annual performance plans and targets, program performance 
measures, and other appropriate indicators, as well as evaluation 
guidelines based, in part, upon those assessments, that are communicated 
by the agency head, or an individual specifically designated by the 
agency head for such purpose, to senior employees, appropriate senior 
employee rating and reviewing officials, and PRB members. These 
assessments and guidelines are to be provided at the conclusion of the 
appraisal period but before individual senior employee performance 
ratings are recommended, so that they may serve as a basis for 
individual performance evaluations, as appropriate. The guidance

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provided may not take the form of quantitative limitations on the number 
of ratings at any given rating level, and must conform to 5 CFR part 
430, subpart B or C, as applicable;
    (6) Oversight by the agency head or the individual specifically 
designated under paragraph (a)(5) of this section, who certifies, for a 
particular senior employee appraisal system, that--
    (i) The senior employee appraisal process makes meaningful 
distinctions based on relative performance;
    (ii) The results of the senior employee appraisal process take into 
account, as appropriate, the agency's assessment of its performance 
against program performance measures, as well as other relevant 
considerations; and
    (iii) Pay adjustments, cash awards, and levels of pay based on the 
results of the appraisal process accurately reflect and recognize 
individual performance and/or contribution to the agency's performance;
    (7) Accountability, so that final agency head decisions and any PRB 
recommendations regarding senior employee ratings consistent with 5 CFR 
part 430, subparts B and C, individually and overall, appropriately 
reflect the employee's performance expectations, relevant program 
performance measures, and such other relevant factors as the PRB may 
find appropriate; in the case of supervisory senior employees, ratings 
must reflect the degree to which performance standards, requirements, or 
expectations for individual subordinate employees clearly link to 
organizational mission, GPRA strategic goals, or other program or policy 
objectives and take into account the degree of rigor in the appraisal of 
their subordinate employees;
    (8) Performance differentiation, so that the system(s) includes at 
least one summary level of performance above fully successful, including 
a summary level that reflects outstanding performance, as defined in 
Sec.  1330.402, and so that its annual administration results in 
meaningful distinctions based on relative performance that take into 
account the assessment of the agency's performance against relevant 
program performance measures, as described in paragraph (a)(6) of this 
section, employee performance expectations, and such other relevant 
factors as may be appropriate. Relative performance does not require 
ranking senior employees against each other; such ranking is prohibited 
for the purpose of determining performance ratings. For equivalent 
systems that do not use summary ratings, the appraisal system must 
provide for clear differentiation of performance at the outstanding 
level; and
    (9) Pay differentiation, so that those senior employees who have 
demonstrated the highest levels of individual performance and/or 
contribution to the agency's performance receive the highest annual 
summary ratings or ratings of record, as applicable, as well as the 
largest corresponding pay adjustments, cash awards, and levels of pay, 
particularly above the rate for level III of the Executive Schedule. 
Agencies must provide for transparency in the processes for making pay 
decisions, while assuring confidentiality.
    (b) Consistent with the requirements in section 3(a) of the 
Inspector General Act of 1978, an agency's Inspector General or an 
official he or she designates must perform the functions listed in 
paragraphs (a)(5) and (6) of this section for senior employees in the 
Office of the Inspector General.



Sec.  1330.405  Procedures for certifying agency appraisal systems.

    (a) General. To receive system certification, an agency must provide 
documentation demonstrating that its appraisal system(s), in design, 
application, and administration, meets the certification criteria in 
Sec.  1330.404 as well as the procedural requirements set forth in this 
section.
    (b) Certification requests. In order for an agency's appraisal 
system to be certified, the head of the agency or designee must submit a 
written request for full or provisional certification of its appraisal 
system(s) to OPM. Certification requests may cover an agencywide system 
or a system that applies to one or more agency organizations or 
components and must include--
    (1) A full description of the appraisal system(s) to be certified, 
including--
    (i) Organizational and employee coverage information;

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    (ii) Applicable administrative instructions and implementing 
guidance; and
    (iii) The system's use of rating levels that are capable of clearly 
differentiating among senior employees based on appraisals of their 
relative performance against performance expectations in any given 
appraisal period reflecting performance evaluation results that make 
meaningful distinctions based on relative performance, and which 
include--
    (A) For the agency's senior executives covered by 5 CFR part 430, 
subpart C, at least four, but not more than five, summary rating 
levels--an outstanding level, a fully successful level, an optional 
level between outstanding and fully successful, a minimally satisfactory 
level, and an unsatisfactory level;
    (B) For the agency's senior professionals covered by 5 CFR part 430, 
subpart B, at least three, but not more than five, summary levels--an 
outstanding level, a fully successful level, an optional level between 
outstanding and fully successful, an unacceptable level, and an optional 
level between fully successful and unacceptable; and
    (C) For agencies not subject to 5 CFR part 430, subparts B and C, a 
summary rating level that reflects outstanding performance or a 
methodology that clearly differentiates outstanding performance, as 
defined in Sec.  1330.402;
    (2) A clearly defined process for reviewing--
    (i) The initial summary ratings and ratings of record, as 
applicable, of senior employees to ensure that annual summary ratings or 
ratings of record are not distributed arbitrarily or on a rotational 
basis, and
    (ii) In the case of senior employees with supervisory 
responsibilities--
    (A) The performance standards, requirements, or expectations for the 
employees they supervise to ensure that they clearly link to 
organizational mission, GPRA strategic goals, or other program and 
policy objectives, as appropriate, and
    (B) The performance standards, requirements, or expectations and the 
performance ratings of the employees they supervise to ensure that they 
reflect distinctions in individual and organizational performance, as 
appropriate;
    (3) Documentation showing that the appraisal system(s) meets the 
applicable certification criteria, as follows:
    (i) For provisional certification, the requirements in Sec.  
1330.404(a)(1)-(4); and
    (ii) For full certification, all of the requirements in Sec.  
1330.404.
    (4) For full certification, data on senior executive annual summary 
ratings and senior professional ratings of record, as applicable (or 
other documentation for agencies that do not use summary ratings), for 
the two appraisal periods preceding the request, as well as 
corresponding pay adjustments, cash awards, and levels of pay provided 
to those senior employees; and
    (5) Any additional information that OPM and OMB may require to make 
a determination regarding certification.
    (c) Certification actions. At the request of an agency, the Director 
of OPM, at his or her discretion and in accordance with the requirements 
of this subpart and with OMB concurrence, may grant full or provisional 
certification of the agency's appraisal system(s). OPM, with OMB 
concurrence, may--
    (1) Grant full certification of an agency's senior employee 
appraisal system(s) for 2 calendar years when an agency has demonstrated 
that it has designed and fully implemented and applied an appraisal 
system(s) for its senior executives or senior professionals, as 
applicable, that meets the certification criteria in Sec.  1330.404 and 
the documentation requirements of this section.
    (2) Grant provisional certification of an agency's senior employee 
appraisal system(s) for 1 calendar year when an agency has designed, but 
not yet fully implemented or applied, an appraisal system(s) for its 
senior executives or senior professionals, as applicable, that meets the 
certification criteria in Sec.  1330.404. OPM may extend provisional 
certification into the following calendar year in order to permit an 
agency to take any actions needed to adjust pay based on annual summary 
ratings, ratings of record, or other performance appraisal results 
determined during the

[[Page 194]]

calendar year for which the system was certified; or
    (3) Suspend certification under paragraph (h) of this section if, at 
any time during the certification period, OPM, with OMB concurrence, 
determines that the agency appraisal system is not in compliance with 
certification criteria.
    (d) Pay limitations. Absent full or provisional certification of its 
appraisal system(s), an agency must--
    (1) Set a senior executive's rate of basic pay at a rate that does 
not exceed the rate for level III of the Executive Schedule, consistent 
with 5 CFR part 534, subpart D, when effective; and
    (2) Limit aggregate compensation paid to senior employees in a 
calendar year to the rate for level I of the Executive Schedule, 
consistent with 5 CFR 530.203(b).
    (e) Full certification. (1) OPM, with OMB concurrence, may grant 
full certification when a review of the agency's request and 
accompanying documentation demonstrates that the design, application, 
and administration of the agency's appraisal system(s) meet the criteria 
in Sec.  1330.404 and the documentation requirements of this section.
    (2) An agency with a fully-certified appraisal system(s) may set the 
rate of basic pay under 5 CFR part 534, subpart D, when effective, for a 
senior executive covered by a certified system at a rate that does not 
exceed the rate for level II of the Executive Schedule and pay senior 
employees covered by certified system(s) aggregate compensation in a 
certified calendar year in an amount up to the Vice President's salary 
under 3 U.S.C. 104.
    (3) Full certification of an agency's appraisal system will be 
renewed automatically for an additional 2 calendar years, if--
    (i) The agency meets the annual reporting requirements in paragraph 
(g) of this section; and
    (ii) Based on those annual reports, OPM determines, and OMB concurs, 
that the appraisal system(s) continues to meet the certification 
criteria and procedural requirements set forth in this subpart.
    (f) Provisional certification. (1) OPM, with OMB concurrence, may 
grant provisional certification when the design of an agency's appraisal 
system(s) for senior executives or senior professionals, as applicable, 
meets the requirements set forth in this subpart, but insufficient 
documentation exists to determine whether the actual application and 
administration of the appraisal system(s) meet the requirements for full 
certification. OPM, with OMB concurrence, may grant provisional 
certification to an agency more than once.
    (2) During the 1-year period of provisional certification, an agency 
may set the rate of basic pay for a senior executive covered by the 
provisionally certified system at a rate that does not exceed the rate 
for level II of the Executive Schedule (consistent with 5 CFR part 534, 
subpart D, when effective) and pay senior employees covered by 
provisionally certified systems aggregate compensation in the certified 
calendar year in an amount up to the Vice President's salary under 3 
U.S.C. 104 (consistent with 5 CFR part 530, subpart B).
    (3) An agency must resubmit an application requesting provisional 
certification for every calendar year for which it intends to maintain 
provisional certification. An agency with a provisionally certified 
appraisal system(s) may request that OPM, with OMB concurrence, grant 
full certification upon a showing that its performance appraisal systems 
for senior executives and senior professionals, as applicable, meet the 
certification criteria in Sec.  1330.404 and the documentation 
requirements in this section, particularly with respect to the 
implementation and administration of the system(s) over at least two 
consecutive performance appraisal periods.
    (g) Annual reporting requirement. Agencies with certified appraisal 
systems must provide OPM with a general summary of the annual summary 
ratings and ratings of record, as applicable, and rates of basic pay, 
pay adjustments, cash awards, and aggregate total compensation 
(including any lump-sum payments in excess of the applicable aggregate 
limitation on pay that were paid in the current calendar year as 
required by Sec.  530.204) for their senior employees covered by a 
certified

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appraisal system at the conclusion of each appraisal period that ends 
during a calendar year for which the certification is in effect, in 
accordance with OPM instructions.
    (h) Suspension of certification. (1) When OPM determines that an 
agency's certified appraisal system is no longer in compliance with 
certification criteria, OPM, with OMB concurrence, may suspend such 
certification, as provided in paragraph (c)(3) of this section.
    (2) An agency's system certification is automatically suspended when 
OPM withdraws performance appraisal system approval or mandates 
corrective action because of misapplication of the system as authorized 
under Sec. Sec.  430.210(c), 430.312(c), and 1330.403(e).
    (3) OPM will notify the head of the agency at least 30 calendar days 
in advance of the suspension and the reason(s) for the suspension, as 
well as any expected corrective action. Upon such notice, and until its 
system certification is reinstated, the agency must set a senior 
executive's rate of basic pay under 5 CFR part 534, subpart D, when 
effective, at a rate that does not exceed the rate for level III of the 
Executive Schedule. While certification is suspended, an agency must 
limit aggregate compensation received in a calendar year by a senior 
employee to the rate for level I of the Executive Schedule. Pay 
adjustments, cash awards, and levels of pay in effect prior to that 
notice will remain in effect unless OPM finds that any such decision and 
subsequent action was in violation of law, rule, or regulation.
    (4) OPM, with OMB concurrence, may reinstate an agency's suspended 
certification only after the agency has taken appropriate corrective 
action.
    (5) OPM may reinstate the certification of an appraisal system that 
has been automatically suspended under paragraph (h)(2) of this section 
upon the agency's compliance with the applicable OPM-mandated corrective 
action(s).

                       PARTS 1331	1399 [RESERVED]

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CHAPTER IV--OFFICE OF PERSONNEL MANAGEMENT AND OFFICE OF THE DIRECTOR OF 
                          NATIONAL INTELLIGENCE




  --------------------------------------------------------------------
Part                                                                Page
1400            Designation of national security positions..         199
1401-1499

 [Reserved]

[[Page 199]]



PART 1400_DESIGNATION OF NATIONAL SECURITY POSITIONS--Table of Contents



                             Subpart A_Scope

Sec.
1400.101 Purpose.
1400.102 Definitions and applicability.
1400.103 Implementation.

          Subpart B_Designation and Investigative Requirements

1400.201 Sensitivity level designations and investigative requirements.
1400.202 Waivers and exceptions to preappointment investigative 
          requirements.
1400.203 Periodic reinvestigation requirements.
1400.204 Reassessment of current positions.
1400.205 Savings provision.

                Subpart C_Procedural Rights and Reporting

1400.301 Procedural rights.
1400.302 Reporting to OPM.

    Authority: 5 U.S.C. 1103(a)(5), 3301, 3302, 7312; 50 U.S.C. 3023, 
3341; E.O. 10450, 3 CFR, 1949-1953 Comp., p. 936; E.O. 10577, 3 CFR, 
1954-1958 Comp., p. 218; E.O. 12968, 3 CFR, 1995 Comp., p. 391; E.O. 
13467, 3 CFR, 2008 Comp., p. 196; 3 CFR, 2013 Comp., p. 358.

    Source: 80 FR 32262, June 5, 2015, unless otherwise noted.



                             Subpart A_Scope



Sec.  1400.101  Purpose.

    (a) This part sets forth certain requirements and procedures which 
each agency shall observe for determining national security positions 
pursuant to Executive Order 10450--Security Requirements for Government 
Employment (April 27, 1953), 3 CFR 1949-1953 Comp., p. 936.
    (b) All positions must be evaluated for a position sensitivity 
designation commensurate with the responsibilities and assignments of 
the position as they relate to the impact on the national security, 
including but not limited to eligibility for access to classified 
information.



Sec.  1400.102  Definitions and applicability.

    (a) In this part--
    (1) Critical infrastructures are systems and assets, whether 
physical or virtual, so vital to the United States that the incapacity 
or destruction of such systems and assets would have a debilitating 
impact on security, national economic security, national public health 
or safety, or any combination of those matters.
    (2) Key resources are publicly or privately controlled resources 
essential to the minimal operations of the economy and government.
    (3) National security refers to those activities which are directly 
concerned with the foreign relations of the United States, or protection 
of the Nation from internal subversion, foreign aggression, or 
terrorism.
    (4) National security position includes any position in a department 
or agency, the occupant of which could bring about, by virtue of the 
nature of the position, a material adverse effect on the national 
security.
    (i) Such positions include those requiring eligibility for access to 
classified information.
    (ii) Other such positions include, but are not limited to, those 
whose duties include:
    (A) Protecting the nation, its citizens and residents from acts of 
terrorism, espionage, or foreign aggression, including those positions 
where the occupant's duties involve protecting the nation's borders, 
ports, critical infrastructure or key resources, and where the 
occupant's neglect, action, or inaction could bring about a material 
adverse effect on the national security;
    (B) Developing plans or policies related to national defense or 
military operations;
    (C) Planning or conducting intelligence or counterintelligence 
activities, counterterrorism activities and related activities concerned 
with the preservation of the military strength of the United States;
    (D) Protecting or controlling access to facilities or information 
systems where the occupant's neglect, action, or inaction could bring 
about a material adverse effect on the national security;
    (E) Controlling, maintaining custody, safeguarding, or disposing of 
hazardous materials, arms, ammunition or explosives, where the 
occupant's neglect, action, or inaction could bring about a

[[Page 200]]

material adverse effect on the national security;
    (F) Exercising investigative or adjudicative duties related to 
national security, suitability, fitness or identity credentialing, where 
the occupant's neglect, action, or inaction could bring about a material 
adverse effect on the national security;
    (G) Exercising duties related to criminal justice, public safety or 
law enforcement, where the occupant's neglect, action, or inaction could 
bring about a material adverse effect on the national security; or
    (H) Conducting investigations or audits related to the functions 
described in paragraphs (a)(4)(ii)(B) through (G) of this section, where 
the occupant's neglect, action, or inaction could bring about a material 
adverse effect on the national security.
    (b) The requirements of this part apply to positions in the 
competitive service, positions in the excepted service where the 
incumbent can be noncompetitively converted to the competitive service, 
and Senior Executive Service (SES) positions held by career appointees 
in the SES within the executive branch. Departments and agencies may 
apply the requirements of this part to other excepted service positions 
within the executive branch and contractor positions, to the extent 
consistent with law.



Sec.  1400.103  Implementation.

    OPM and the Security Executive Agent designated pursuant to 
Executive Order 13467 or any successor order may set forth policies, 
general procedures, criteria, standards, quality control procedures, and 
supplementary guidance for the implementation of this part.



          Subpart B_Designation and Investigative Requirements



Sec.  1400.201  Sensitivity level designations and investigative requirements.

    (a) For purposes of this part, the head of each agency must 
designate, or cause to be designated, a position within the department 
or agency as a national security position pursuant to Sec.  1400.102(a). 
National security positions must then be designated, based on the degree 
of potential damage to the national security, at one of the following 
three sensitivity levels:
    (1) Noncritical-Sensitive positions are national security positions 
which have the potential to cause significant or serious damage to the 
national security, including but not limited to:
    (i) Positions requiring eligibility for access to Secret, 
Confidential, or ``L'' classified information; or
    (ii) Positions not requiring eligibility for access to classified 
information, but having the potential to cause significant or serious 
damage to the national security.
    (2) Critical-Sensitive positions are national security positions 
which have the potential to cause exceptionally grave damage to the 
national security, including but not limited to:
    (i) Positions requiring eligibility for access to Top Secret or 
``Q'' classified information;
    (ii) Positions not requiring eligibility for access to classified 
information, but having the potential to cause exceptionally grave 
damage to the national security;
    (iii) Positions involving development or approval of war plans, 
major or special military operations, or critical and extremely 
important items of war;
    (iv) National security policy-making or policy-determining 
positions;
    (v) Positions with investigative duties, including handling of 
completed counterintelligence or background investigations, the nature 
of which have the potential to cause exceptionally grave damage to the 
national security;
    (vi) Positions involving national security adjudicative 
determinations or granting of personnel security clearance eligibility;
    (vii) Positions involving duty on personnel security boards;
    (viii) Senior management positions in key programs, the compromise 
of which could result in exceptionally grave damage to the national 
security;
    (ix) Positions having direct involvement with diplomatic relations 
and negotiations;
    (x) Positions involving independent responsibility for planning or 
approving continuity of Government operations;

[[Page 201]]

    (xi) Positions involving major and immediate responsibility for, and 
the ability to act independently without detection to compromise or 
exploit, the protection, control, and safety of the nation's borders and 
ports or immigration or customs control or policies, where there is a 
potential to cause exceptionally grave damage to the national security;
    (xii) Positions involving major and immediate responsibility for, 
and the ability to act independently without detection to compromise or 
exploit, the design, installation, operation, or maintenance of critical 
infrastructure systems or programs;
    (xiii) Positions in which the occupants have the ability to 
independently damage public health and safety with devastating results;
    (xiv) Positions in which the occupants have the ability to 
independently compromise or exploit biological select agents or toxins, 
chemical agents, nuclear materials, or other hazardous materials;
    (xv) Positions in which the occupants have the ability to 
independently compromise or exploit the nation's nuclear or chemical 
weapons designs or systems;
    (xvi) Positions in which the occupants obligate, expend, collect or 
control revenue, funds or items with monetary value in excess of $50 
million, or procure or secure funding for goods and/or services with 
monetary value in excess of $50 million annually, with the potential for 
exceptionally grave damage to the national security;
    (xvii) Positions in which the occupants have unlimited access to and 
control over unclassified information, which may include private, 
proprietary or other controlled unclassified information, but only where 
the unauthorized disclosure of that information could cause 
exceptionally grave damage to the national security;
    (xviii) Positions in which the occupants have direct, unrestricted 
control over supplies of arms, ammunition, or explosives or control over 
any weapons of mass destruction;
    (xix) Positions in which the occupants have unlimited access to or 
control of access to designated restricted areas or restricted 
facilities that maintain national security information classified at the 
Top Secret or ``Q'' level;
    (xx) Positions working with significant life-critical/mission-
critical systems, such that compromise or exploitation of those systems 
would cause exceptionally grave damage to essential Government 
operations or national infrastructure; or
    (xxi) Positions in which the occupants conduct internal and/or 
external investigation, inquiries, or audits related to the functions 
described in paragraphs (a)(2)(i) through (xx) of this section, where 
the occupant's neglect, action, or inaction could cause exceptionally 
grave damage to the national security.
    (3) Special-Sensitive positions are those national security 
positions which have the potential to cause inestimable damage to the 
national security, including but not limited to positions requiring 
eligibility for access to Sensitive Compartmented Information (SCI), 
requiring eligibility for access to any other intelligence-related 
Special Sensitive information, requiring involvement in Top Secret 
Special Access Programs (SAP), or positions which the agency head 
determines must be designated higher than Critical-Sensitive consistent 
with Executive order.
    (b) OPM and ODNI issue, and periodically revise, a Position 
Designation System which describes in greater detail agency requirements 
for designating positions that could bring about a material adverse 
effect on the national security. Agencies must use the Position 
Designation System to designate the sensitivity level of each position 
covered by this part. All positions receiving a position sensitivity 
designation under this part shall also receive a risk designation under 
5 CFR part 731 (see 5 CFR 731.106) as provided in paragraphs (c) and (d) 
of this section.
    (c) Any position receiving a position sensitivity designation under 
this part at the critical-sensitive or special-sensitive level shall 
automatically carry with that designation, without further agency 
action, a risk designation under 5 CFR 731.106 at the high level.

[[Page 202]]

    (d) Any position receiving a position sensitivity designation at the 
noncritical-sensitive level shall automatically carry with that 
designation, without further agency action, a risk designation under 5 
CFR 731.106 at the moderate level, unless the agency determines that the 
position should be designated at the high level. Agencies shall 
designate the position at the high level where warranted on the basis of 
criteria set forth in OPM issuances as described in Sec.  731.102(c) of 
this title.



Sec.  1400.202  Waivers and exceptions to preappointment 
investigative requirements.

    (a) Waivers--(1) General. A waiver of the preappointment 
investigative requirement contained in section 3(b) of Executive Order 
10450 for employment in a national security position may be made only 
for a limited period:
    (i) In case of emergency if the head of the department or agency 
concerned finds that such action is necessary in the national interest; 
and
    (ii) When such finding is made a part of the records of the 
department or agency.
    (2) Specific waiver requirements. (i) The preappointment 
investigative requirement may not be waived for appointment to positions 
designated Special-Sensitive under this part.
    (ii) For positions designated Critical-Sensitive under this part, 
the records of the department or agency required by paragraph (a)(1) of 
this section must document the decision as follows:
    (A) The nature of the emergency which necessitates an appointment 
prior to completion of the investigation and adjudication process;
    (B) A record demonstrating the successful initiation of the required 
investigation based on a completed questionnaire; and
    (C) A record of the Federal Bureau of Investigation fingerprint 
check portion of the required investigation supporting a preappointment 
waiver.
    (iii) When a waiver for a position designated Noncritical-Sensitive 
is granted under this part, the agency head will determine documentary 
requirements needed to support the waiver decision. In these cases, the 
agency must favorably evaluate the completed questionnaire and expedite 
the submission of the request for an investigation at the appropriate 
level.
    (iv) When waiving the preappointment investigation requirements, the 
applicant must be notified that the preappointment decision was made 
based on limited information, and that the ultimate appointment decision 
depends upon favorable completion and adjudication of the full 
investigative results.
    (b) Exceptions to investigative requirements. Pursuant to section 
3(a) of E.O. 10450, upon request of an agency head, the Office of 
Personnel Management may, in its discretion, authorize such less 
investigation as may meet the requirement of national security with 
respect to:
    (1) Positions that are intermittent, seasonal, per diem, or 
temporary, not to exceed an aggregate of 180 days in either a single 
continuous appointment or series of appointments; or
    (2) Positions filled by aliens employed outside the United States.
    (c) Applicability. This section does not apply to:
    (1) Investigations, waivers of investigative requirements, and 
exceptions from investigative requirements under 42 U.S.C. 2165(b);
    (2) Investigative requirements for eligibility for access to 
classified information under Executive Order 12968; or
    (3) Standards for temporary eligibility for access to classified 
information established by the Security Executive Agent pursuant to 
section 3.3(a)(2) of Executive Order 12968.



Sec.  1400.203  Periodic reinvestigation requirements.

    (a) The incumbent of a national security position requiring 
eligibility for access to classified information is subject to the 
reinvestigation requirements of E.O. 12968.
    (b) The incumbent of a national security position that does not 
require eligibility for access to classified information is subject to 
periodic reinvestigation at least once every five years. Such 
reinvestigation must be conducted using a national security 
questionnaire, and at a frequency and scope

[[Page 203]]

that will satisfy the reinvestigation requirements for both national 
security and public trust positions.



Sec.  1400.204  Reassessment of current positions.

    (a) Agency heads must assess each position covered by this part 
within the agency using the standards set forth in this regulation as 
well as guidance provided in OPM issuances to determine whether changes 
in position sensitivity designations are necessary within 24 months of 
July 6, 2015.
    (b) Where the sensitivity designation of the position is changed, 
and requires a higher level of investigation than was previously 
required for the position,
    (1) The agency must initiate the investigation no later than 14 
working days after the change in designation; and
    (2) The agency will determine whether the incumbent's retention in 
sensitive duties pending the outcome of the investigation is consistent 
with the national security.
    (c) Agencies may provide advance notice of the redesignation of a 
position to allow time for completion of the forms, releases, and other 
information needed from the incumbent to initiate the investigation.
    (d) Agencies may request an extension, pursuant to guidance issued 
jointly by OPM and ODNI, of the timeframe for redesignation of positions 
or initiation of reinvestigations, if justified by severe staffing, 
budgetary, or information technology constraints, or emergency 
circumstances.



Sec.  1400.205  Savings provision.

    No provision of the rule in this part may be applied to make an 
adverse inference in pending administrative proceedings. However, the 
redesignation of a position may require that the occupant of that 
position undergo a new adjudication. An administrative proceeding is 
deemed to be pending from the date of the agency or OPM notice described 
in Sec.  1400.301(c)(1).



                Subpart C_Procedural Rights and Reporting



Sec.  1400.301  Procedural rights.

    When an agency makes an adjudicative decision based on an OPM 
investigation or an investigation conducted under an OPM delegation of 
authority, or when an agency, as a result of information in such an 
investigation, changes a tentative favorable placement or clearance 
decision to an unfavorable decision, the agency must comply with all 
applicable administrative procedural requirements, as provided by law, 
rule, regulation, or Executive order, including E.O. 12968, and the 
agency's own procedural regulations, and must:
    (a) Ensure that the records used in making the decision are 
accurate, relevant, timely, and complete to the extent reasonably 
necessary to assure fairness to the individual in any determination;
    (b) Consider all available, relevant information in reaching its 
final decision; and
    (c) At a minimum, subject to requirements of law, rule, regulation, 
or Executive order:
    (1) Provide the individual concerned notice of the specific 
reason(s) for the decision, an opportunity to respond, and notice of 
appeal rights, if any; and
    (2) Keep any record of the agency action required by OPM as 
published in its issuances.



Sec.  1400.302  Reporting to OPM.

    (a) Each agency conducting an investigation under E.O. 10450 is 
required to notify OPM when the investigation is initiated and when it 
is completed.
    (b) Agencies must report to OPM an adjudicative determination and 
action taken with respect to an individual investigated pursuant to E.O. 
10450 as soon as possible and in no event later than 90 days after 
receipt of the final report of investigation.
    (c) To comply with process efficiency requirements, additional data 
may be collected from agencies conducting investigations or taking 
action under this part. These collections will be identified in separate 
OPM and ODNI guidance, issued as necessary under Sec.  1400.103.

[[Page 204]]

                       PARTS 1401	1499 [RESERVED]

[[Page 205]]



   CHAPTER V--THE INTERNATIONAL ORGANIZATIONS EMPLOYEES LOYALTY BOARD




  --------------------------------------------------------------------
Part                                                                Page
1500

[Reserved]

1501            Operations of the International 
                    Organizations Employees Loyalty Board...         207
1502-1599

 [Reserved]

[[Page 207]]

                          PART 1500 [RESERVED]



PART 1501_OPERATIONS OF THE INTERNATIONAL ORGANIZATIONS 
EMPLOYEES LOYALTY BOARD--Table of Contents



Sec.
1501.1 Name.
1501.2 Officers.
1501.3 Duties of officers.
1501.4 Hearings.
1501.5 Panels of the Board.
1501.6 Quorum.
1501.7 Authority and responsibility of the Board.
1501.8 Grounds for determinations of the Board.
1501.9 Cases reviewable by the Board.
1501.10 Consideration of reports of investigation.
1501.11 Consideration of complete file before hearing.
1501.12 Obtaining further information.
1501.13 Conduct of hearings.
1501.14 Decision of the Board.
1501.15 Transmission of Determination to the Secretary of State.
1501.16 Notification of individual concerned.

    Authority: E.O. 10422, as amended; 3 CFR, 1949-1953 Comp., p. 921.

    Source: 18 FR 6371, Oct. 7, 1953, unless otherwise noted.



Sec.  1501.1  Name.

    This Board shall be known as the International Organizations 
Employees Loyalty Board, and any reference to the ``Board'' in this part 
shall mean such International Organizations Employees Loyalty Board.



Sec.  1501.2  Officers.

    The officers of the Board shall consist of a chairman, a vice-
chairman to be designated by the chairman, and an executive secretary to 
be appointed by the Board.



Sec.  1501.3  Duties of officers.

    (a) The Chairman. The chairman shall perform all the duties usually 
pertaining to the office of chairman, including presiding at Board 
meetings, supervising the administrative work of the Board, and 
conducting its correspondence. He shall be authorized to call special 
meetings of the Board, when in his judgment, such meetings are necessary 
and shall call such meetings at the written request of three members of 
the Board. The time and place of such meetings shall be fixed by the 
chairman. The chairman shall constitute such panels of the Board as may 
be necessary or desirable to render advisory determinations and to 
conduct hearings, and he is authorized to appoint such committees as 
from time to time may be required to handle the work of the Board. The 
chairman may request the vice-chairman to assume the duties of the 
chairman in the event of the absence of the chairman or his inability to 
act.
    (b) The Vice-Chairman. The duties of the vice-chairman, when acting 
in the place of the chairman, shall be the same as the duties of the 
chairman.
    (c) The Executive-Secretary. The executive-secretary shall perform 
all of the duties customarily performed by an executive-secretary. He 
shall have immediate charge of the administrative duties of the Board 
under the direction of the chairman and shall have general 
responsibility for advising and assisting the Board members and 
exercising executive direction over the staff.



Sec.  1501.4  Hearings.

    No adverse determination shall be made without the opportunity for a 
hearing.



Sec.  1501.5  Panels of the Board.

    All hearings shall be held by panels of the Board, the 
determinations of which shall be the determinations of the Board. Such 
panels of the Board shall consist of not less than three members 
designated by the chairman. The chairman shall designate the Board 
member who shall be the presiding member and it shall be the duty of 
such presiding member to make due report to the Board of all acts and 
proceedings of the said panel.



Sec.  1501.6  Quorum.

    A majority of all the members of the Board shall constitute a quorum 
of the Board. Minutes shall be kept of the transactions of the Board in 
its meetings.

[[Page 208]]



Sec.  1501.7  Authority and responsibility of the Board.

    The Board shall have the authority and responsibility to make rules 
and regulations, not inconsistent with the provisions of Executive Order 
10422, as amended, for the execution of its functions and for making 
available to the Secretary General of the United Nations and the 
executive heads of other public international organizations certain 
information concerning United States citizens employed or being 
considered for employment by the United Nations or other public 
international organizations of which the United States is a member.



Sec.  1501.8  Grounds for determinations of the Board.

    (a) Standard. The standard to be used by the Board in making any 
advisory determination relating to the loyalty of a United States 
citizen who is an employee of, or is being considered for employment in, 
a public international organization of which the United States is a 
member, shall be whether or not on all the evidence there is a 
reasonable doubt as to the loyalty of the person involved to the 
Government of the United States.
    (b) Activities and associations. Among the activities and 
associations of the employee or person being considered for employment 
which may be considered in connection with a determination of disloyalty 
may be one or more of the following:
    (1) Sabotage, espionage, or attempts or preparations therefor, or 
knowingly associating with spies or saboteurs.
    (2) Treason or sedition or advocacy thereof.
    (3) Advocacy of revolution or force or violence to alter the 
constitutional form of government of the United States.
    (4) Intentional, unauthorized disclosure to any person, under 
circumstances which may indicate disloyalty to the United States, of 
United States documents or United States information of a confidential 
or non-public character obtained by the person making the disclosure as 
a result of his previous employment by the Government of the United 
States or otherwise.
    (5) Performing or attempting to perform his duties, or otherwise 
acting, while an employee of the United States Government during a 
previous period, so as to serve the interests of another government in 
preference to the interests of the United States.
    (6) Membership in, or affiliation or sympathetic association with, 
any foreign or domestic organization, association, movement, or group or 
combination of persons, designated by the Attorney General as 
totalitarian, fascist, communist, or subversive, or as having adopted a 
policy of advocating or approving the commission of acts of force or 
violence to deny other persons their rights under the Constitution of 
the United States, or as seeking to alter the form of government of the 
United States by unconstitutional means.



Sec.  1501.9  Cases reviewable by the Board.

    All cases in which an investigation has been made under Executive 
Order 10422, as amended, shall be referred to and reviewed by the Board 
in accordance with the Executive Order and the rules and regulations of 
the Board.



Sec.  1501.10  Consideration of reports of investigation.

    (a) In all cases the Board shall consider the reports of 
investigation in the light of the standard as set forth in Sec.  1501.8 
and shall determine whether such reports warrant a finding favorable to 
the individual or appear to call for further processing of the case with 
a view to a possible unfavorable determination.
    (b) If the Board reaches a favorable conclusion in a case involving 
a question of loyalty, it shall make a determination that on all the 
evidence there is not a reasonable doubt as to the individual's loyalty.
    (c) If the Board determines that the reports do not warrant a 
finding favorable to the individual, or the Board determines that the 
evidence is of such a nature that a hearing may be required before a 
final decision is made, the Board shall send by registered mail, or in 
such other manner as the Board in a particular case may decide, a 
written interrogatory to the individual. Such interrogatory shall state 
the nature of

[[Page 209]]

the evidence against him, setting forth with particularity the facts and 
circumstances involved, in as much detail as security conditions permit, 
in order to enable him to submit his answer, defense or explanation and 
to submit affidavits. It will also inform the applicant or employee, of 
his opportunity to reply to the interrogatory in writing, under oath or 
affirmation, within ten (10) calendar days of the date of receipt by him 
of the interrogatory or such longer time as the Board in specific cases 
may prescribe, and of his opportunity for a hearing on the issues before 
the Board or a panel of the Board, including his right to appear 
personally at such hearing, to be represented by counsel of a 
representative of his own choosing, to present evidence in his own 
behalf, and to cross-examine witnesses offered in support of the 
derogatory information.



Sec.  1501.11  Consideration of complete file before hearing.

    (a) Following delivery to the applicant or employee of the 
interrogatory and after expiration of the time limit for filing an 
answer to the interrogatory, the Board shall proceed to consider the 
case on the complete file, including the answer, if any, to the 
interrogatory.
    (b) If, upon such consideration, the Board concludes that a finding 
favorable to the individual may be made, no hearing shall be required.
    (c) If, upon such consideration, the Board concludes that a 
determination favorable to the individual cannot be made on the basis of 
the information in the file, it shall set a time and place for a hearing 
and shall give notice thereof to the individual.



Sec.  1501.12  Obtaining further information.

    At any stage in its review and consideration of a case, if the Board 
deems it advisable or necessary to obtain information or clarification 
of any matter, the Board may request further investigation, or submit a 
written questionnaire to the individual whose case is before the Board, 
or request such individual to furnish information in an oral interview.



Sec.  1501.13  Conduct of hearings.

    (a) Not less than three members of a panel of the Board shall be 
present at all hearings. The Board shall conduct its hearings in such 
manner as to protect from disclosure information affecting the national 
security. The chairman of the panel shall preside and be responsible for 
the maintenance of decorum and order in the hearing.
    (b) Attendance at hearings shall be limited to the applicant or 
employee, his attorney or representative, the panel of the Board 
assigned to the case, Board members, Board staff employees participating 
in the case, the witness who is testifying, and such other persons as in 
the opinion of the panel are required for the proper presentation of the 
case. Representation for an applicant or employee shall be limited to 
one attorney or representative and one bona fide assistant, both 
representing the applicant or employee only.
    (c) Hearings shall begin with the reading of the interrogatory. The 
applicant or employee shall thereupon be informed of his right to 
participate in the hearing, to be represented by counsel, to present 
witnesses and other evidence in his behalf, and to cross-examine 
witnesses offered in support of the derogatory information.
    (d) Testimony shall be given under oath or affirmation.
    (e) Strict legal rules of evidence shall not be applied at the 
hearings, but reasonable bounds shall be maintained as to competency, 
relevancy, and materiality and due allowance shall be made for the 
effect of any nondisclosure to the individual of information or the 
absence of any opportunity to cross-examine persons who supplied 
information but who do not appear and testify. Both the Government and 
the applicant or employee may introduce such evidence as the panel may 
deem proper in the particular case.
    (f) A complete verbatim stenographic transcript shall be made of the 
hearing, and the transcript shall constitute a permanent part of the 
record.
    (g) Applicants and employees must pay their own travel and 
subsistence expenses incident to attendance at hearings, except that the 
Board may authorize the payment of travel and subsistence expenses to 
applicants or

[[Page 210]]

employees when the hearing is held at a place other than the place 
outside the continental limits of the United States where the employee 
works, or the applicant resides, and such payment is considered in the 
interest of good administration and funds are available for this 
purpose.

[18 FR 6371, Oct. 7, 1953, as amended at 21 FR 5249, July 14, 1956]



Sec.  1501.14  Decision of the Board.

    After the employee or person being considered for employment has 
been given a hearing, the Board shall promptly make its decision. The 
determination of the Board shall be in writing and shall be signed by 
the members of the panel. It shall state the action taken, together with 
the reasons therefor, and shall be made a permanent part of the file in 
every case.



Sec.  1501.15  Transmission of Determination to the Secretary of State.

    The Board shall transmit its determination in each case to the 
Secretary of State for transmission to the Secretary General of the 
United Nations, or the executive head of any other public international 
organization concerned. In each case in which the Board determines that, 
on all the evidence, there is a reasonable doubt as to the loyalty of 
the person involved to the Government of the United States, it shall 
also transmit a statement of the reasons for the Board's determination 
in as much detail as the Board deems that security considerations 
permit.



Sec.  1501.16  Notification of individual concerned.

    A copy of the determination of the Board, but not of the statement 
of reasons, shall be furnished in each case to the person who is the 
subject thereof.

                       PARTS 1502	1599 [RESERVED]

[[Page 211]]



         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD




  --------------------------------------------------------------------
Part                                                                Page
1600            Employee contribution elections, 
                    contribution allocations, and automatic 
                    enrollment program......................         213
1601            Participants' choices of TSP Funds..........         220
1603            Vesting.....................................         224
1604

[Reserved]

1605            Correction of administrative errors.........         225
1606

[Reserved]

1620            Expanded and continuing eligibility.........         240
1630            Privacy Act regulations.....................         246
1631            Availability of records.....................         255
1632            Rules regarding public observation of 
                    meetings................................         267
1633            Standards of conduct........................         271
1636            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the Federal 
                    Retirement Thrift Investment Board......         271
1639            Claims collection...........................         277
1640            Periodic participant statements.............         292
1645            Calculation of share prices.................         293
1650            Methods of withdrawing funds from the Thrift 
                    Savings Plan............................         295
1651            Death benefits..............................         306
1653            Court orders and legal processes affecting 
                    Thrift Savings Plan accounts............         314
1655            Loan program................................         326
1690            Thrift Savings Plan.........................         333
1691-1699

 [Reserved]

[[Page 213]]



PART 1600_EMPLOYEE CONTRIBUTION ELECTIONS, CONTRIBUTION ALLOCATIONS, 
AND AUTOMATIC ENROLLMENT PROGRAM--Table of Contents



                            Subpart A_General

Sec.
1600.1 Definitions.

                           Subpart B_Elections

1600.11 Types of elections.
1600.12 Contribution elections.
1600.13 Effect of transfer to FERS.
1600.14 Effect of election to be covered by BRS.

                   Subpart C_Program of Contributions

1600.18 Separate service member and civilian contributions.
1600.19 Employing agency contributions.
1600.20 Types of employee contributions.
1600.21 Contributions in whole percentages or whole dollar amounts.
1600.22 Maximum employee contributions.
1600.23 Catch-up contributions.

        Subpart D_Transfers From Other Qualified Retirement Plans

1600.30 Accounts eligible for transfer.
1600.31 Methods for transferring eligible rollover distribution to TSP.
1600.32 Treatment accorded transferred funds.
1600.33 Combining uniformed services accounts and civilian accounts.

                 Subpart E_Automatic Enrollment Program

1600.34 Automatic enrollment program.
1600.35 Refunds of default employee contributions.
1600.36 Matching contributions.
1600.37 Notice.

    Authority: 5 U.S.C. 8351, 8432(a), 8432(b), 8432(c), 8432(j), 8432d, 
8474(b)(5) and (c)(1), and 8440e.

    Source: 66 FR 22089, May 2, 2001, unless otherwise noted.



                            Subpart A_General



Sec.  1600.1  Definitions.

    Definitions generally applicable to the Thrift Savings Plan are set 
forth at 5 CFR 1690.1.

[68 FR 35494, June 13, 2003]



                           Subpart B_Elections



Sec.  1600.11  Types of elections.

    (a) Contribution elections. A contribution election must be made 
pursuant to Sec.  1600.12 and includes the following types of elections:
    (1) To make employee contributions;
    (2) To change the amount of employee contributions;
    (3) To change the type of employee contributions (traditional or 
Roth); or
    (4) To terminate employee contributions.
    (b) Contribution allocation. A participant may make or change the 
manner in which future deposits to his or her account are allocated 
among the TSP Funds only in accordance with 5 CFR part 1601.

[66 FR 22089, May 2, 2001, as amended at 68 FR 35494, June 13, 2003; 70 
FR 32207, June 1, 2005; 75 FR 24785, May 6, 2010; 77 FR 26422, May 4, 
2012]



Sec.  1600.12  Contribution elections.

    (a) An employee may make a contribution election at any time.
    (b) A participant must submit a contribution election to his or her 
employing agency. To make an election, employees may use either the 
paper election form provided by the TSP, or, if available from their 
employing agency, electronic media. If an electronic medium is used, all 
relevant elements contained on the paper form must be included in the 
electronic medium.
    (c) A contribution election must:
    (1) Be completed in accordance with the instructions on the form, if 
a paper form is used;
    (2) Be made in accordance with the employing agency's instructions, 
if the submission is made electronically; and
    (3) Not exceed the maximum contribution limitations described in 
Sec.  1600.22.
    (d) A contribution election will become effective no later than the 
first full pay period after it is received by the employing agency.
    (e) A uniformed service member may elect to contribute sums to the 
TSP from basic pay and special or incentive pay (including bonuses). 
However, in order to contribute to the TSP from special or incentive pay 
(including bonuses), the uniformed service member

[[Page 214]]

must also elect to contribute to the TSP from basic pay. A uniformed 
service member may elect to contribute from special pay or incentive pay 
(including bonuses) in anticipation of receiving such pay (that is, he 
or she does not have to be receiving the special or incentive pay 
(including bonuses) when the contribution election is made); those 
elections will take effect when the uniformed service member receives 
the special or incentive pay (including bonuses).

[70 FR 32207, June 1, 2005, as amended at 77 FR 26422, May 4, 2012]



Sec.  1600.13  Effect of transfer to FERS.

    (a) If an employee appointed to a position covered by CSRS elects to 
transfer to FERS, the employee may make a contribution election at any 
time.
    (b) Eligibility to make employee contributions, and therefore to 
have agency matching contributions made on the employee's behalf, is 
subject to the restrictions on making employee contributions after 
receipt of a financial hardship in-service withdrawal described at 5 CFR 
part 1650.
    (c) If the employee had elected to make TSP contributions while 
covered by CSRS, the election continues to be valid until the employee 
makes a new valid election.
    (d) Agency automatic (1%) contributions for all employees covered 
under this section and, if applicable, agency matching contributions 
attributable to employee contributions must begin the same pay period 
that the transfer to FERS becomes effective.

[70 FR 32207, June 1, 2005. Redesignated at 26422, May 4, 2012]



Sec.  1600.14  Effect of election to be covered by BRS.

    (a) If a uniformed service member elects to be covered by BRS, the 
member may make a contribution election at any time.
    (b) Eligibility to make employee contributions, and therefore to 
have Agency Matching Contributions made on the member's behalf, is 
subject to the restrictions on making employee contributions after 
receipt of a financial hardship in-service withdrawal described at 5 CFR 
part 1650.
    (c) If the member had elected to make TSP contributions while not 
covered by BRS, the election remains effective until the member makes a 
new election.
    (d) Agency Automatic (1%) Contributions for all members covered 
under this section and, if applicable, Agency Matching Contributions 
attributable to employee contributions must begin the first full pay 
period that the transfer to BRS becomes effective.

[82 FR 60102, Dec. 19, 2017]



                   Subpart C_Program of Contributions



Sec.  1600.18  Separate service member and civilian contributions.

    The TSP maintains uniformed services accounts separately from 
civilian accounts. Therefore, a participant who has made contributions 
as a uniformed service member and as a civilian employee will have two 
TSP accounts: A uniformed services account and a civilian account.

[77 FR 26422, May 4, 2012]



Sec.  1600.19  Employing agency contributions.

    (a) Agency Automatic (1%) Contributions. Each pay period, subject to 
the limitations in paragraph (c) of this section, any agency that 
employs an individual covered by FERS or BRS must make a contribution to 
that employee's tax-deferred balance for the benefit of the individual 
equal to 1% of the basic pay paid to such employee for service performed 
during that pay period. The employing agency must make Agency Automatic 
(1%) Contributions without regard to whether the employee elects to make 
employee contributions.
    (b) Agency Matching Contributions. (1) Subject to the limitations in 
paragraph (c) of this section, any agency that employs an individual 
covered by FERS or BRS must make a contribution to the employee's tax-
deferred balance for the benefit of the employee equal to the sum of:
    (i) The amount of the employee's contribution that does not exceed 
3% of the employee's basic pay for such pay period; and

[[Page 215]]

    (ii) One-half of such portion of the amount of the employee's 
contributions that exceeds 3% but does not exceed 5% of the employee's 
basic pay for such period.
    (2) A uniformed service member is not entitled to matching 
contributions for contributions deducted from special or incentive pay 
(including bonuses).
    (c) Timing of employing agency contributions. (1) An employee 
appointed or reappointed to a position covered by FERS is immediately 
eligible to receive employing agency contributions.
    (2) A uniformed service member covered by BRS will be eligible to 
receive employing agency contributions pursuant to the following rules:
    (i) A uniformed service member who first entered service on or after 
January 1, 2018 is entitled to:
    (A) Agency Automatic (1%) Contributions beginning in the first full 
pay period following the date that is 60 days after the uniformed 
service member's PEBD and ending in the first full pay period following 
the date that is 26 years after the uniformed service member's PEBD.
    (B) Agency Matching Contributions beginning in the first full pay 
period following the date that is 2 years after the uniformed service 
member's PEBD and ending in the first full pay period following the date 
that is 26 years after the uniformed service member's PEBD.
    (ii) A uniformed service member who elects to enroll in BRS is 
entitled to:
    (A) Agency Automatic (1%) Contributions beginning in the first full 
pay period following the date the uniformed service member enrolled in 
BRS and ending in the first full pay period following the date that is 
26 years after the Uniformed service member's PEBD.
    (B) Agency Matching Contributions beginning in the first full pay 
period following the date the uniformed service member enrolled in BRS 
and ending in the first full pay period following the date that is 26 
years after the uniformed service member's PEBD.

[77 FR 26422, May 4, 2012, as amended at 82 FR 60102, Dec. 19, 2017; 82 
FR 61129, Dec. 27, 2017]



Sec.  1600.20  Types of employee contributions.

    (a) Traditional contributions. A participant may make traditional 
contributions.
    (b) Roth contributions. A participant may make Roth contributions in 
addition to or in lieu of traditional contributions.
    (c) Contributions from tax-exempt pay. A uniformed service member 
who receives pay which is exempt from taxation under 26 U.S.C. 112 will 
have contributions deducted from such pay and made to his or her 
traditional or Roth balance in accordance with an election made under 
paragraph (a) or (b) of this section.

[77 FR 26422, May 4, 2012]



Sec.  1600.21  Contributions in whole percentages or whole dollar amounts.

    (a) Civilian employees may elect to contribute a percentage of basic 
pay or a dollar amount, subject to the limits described in Sec.  
1600.22. The election must be expressed in whole percentages or whole 
dollar amounts. A participant may contribute a percentage for one type 
of contribution and a dollar amount for another type of contribution. If 
a participant elects to contribute a dollar amount to his or her 
traditional balance and a dollar amount to his or her Roth balance, but 
the total dollar amount elected is more than the amount available to be 
deducted from the participant's basic pay, the employing agency will 
deduct traditional contributions first and Roth contributions second.
    (b) Uniformed services members may elect to contribute a basic pay 
and special or incentive pay (including bonus pay) subject to the limits 
described in Sec.  1600.22. The election may be expressed as a whole 
percentage, a dollar amount, or both as determined by the member's 
service.

[77 FR 26423, May 4, 2012]



Sec.  1600.22  Maximum employee contributions.

    A participant's employee contributions are subject to the following 
limitations:

[[Page 216]]

    (a) The maximum employee contribution will be limited only by the 
provisions of the Internal Revenue Code (26 U.S.C.).
    (b) A participant may make traditional contributions and Roth 
contributions during the same year, but the combined total amount of the 
participant's tax-deferred employee contributions and Roth contributions 
cannot exceed the applicable Internal Revenue Code elective deferral 
limit for the year.
    (c) A participant who has both a civilian and a uniformed services 
account can make employee contributions to both accounts, but the 
combined total amount of the participant's tax-deferred employee 
contributions and Roth contributions made to both accounts cannot exceed 
the Internal Revenue Code elective deferral limit for the year.

[77 FR 26423, May 4, 2012]



Sec.  1600.23  Catch-up contributions.

    (a) A participant may make traditional catch-up contributions or 
Roth catch-up contributions from basic pay at any time during the 
calendar year if he or she:
    (1) Is at least age 50 by the end of the calendar year;
    (2) Is making employee contributions at a rate that will result in 
the participant making the maximum employee contributions permitted 
under Sec.  1600.22; and
    (3) Does not exceed the annual limit on catch-up contributions 
contained in section 414(v) the Internal Revenue Code.
    (b) An election to make catch-up contributions must be made using a 
Catch-Up Contribution Election form (or an electronic substitute) and 
will be valid only through the end of the calendar year in which the 
election is made. An election to make catch-up contributions will be 
separate from the participant's regular contribution election. The 
election must be expressed in whole dollar amounts.
    (c) A participant may make traditional catch-up contributions and 
Roth catch-up contributions during the same year, but the combined total 
amount of catch-up contributions of both types cannot exceed the 
applicable Internal Revenue Code catch-up contribution limit for the 
year.
    (d) A participant who has both a civilian account and a uniformed 
services account may make catch-up contributions to both accounts, but 
the combined total amount of catch-up contributions to both accounts 
cannot exceed the Internal Revenue Code catch-up contribution limit for 
the year.
    (e) A participant cannot make catch-up contributions to his or her 
traditional balance from pay which is exempt from taxation under 26 
U.S.C. 112.
    (f) A participant may make catch-up contributions to his or her Roth 
balance from pay which is exempt from taxation under 26 U.S.C. 112.
    (g) A participant cannot make catch-up contributions from special or 
incentive pay (including bonus pay).
    (h) Catch-up contributions are not eligible for matching 
contributions.

[77 FR 26423, May 4, 2012]



        Subpart D_Transfers From Other Qualified Retirement Plans



Sec.  1600.30  Accounts eligible for transfer.

    (a) A participant who has an open TSP account and is entitled to 
receive (or receives) an eligible rollover distribution, within the 
meaning of I.R.C. section 402(c)(4) (26 U.S.C. 402(c)(4)), from an 
eligible employer plan or a rollover contribution, within the meaning of 
I.R.C. section 408(d)(3) (26 U.S.C. 408(d)(3)), from a traditional IRA 
may transfer or roll over that distribution into his or her existing TSP 
account in accordance with Sec.  1600.31.
    (b) The only balances that the TSP will accept are balances that 
would otherwise be includible in gross income if the distribution were 
paid to the participant. The TSP will not accept any balances that have 
already been subjected to Federal income tax (after-tax monies) or 
balances from a uniformed services TSP account that will not be subject 
to Federal income tax (tax-exempt monies).
    (c) Notwithstanding paragraph (b) of this section, the TSP will 
accept Roth funds that are transferred via trustee-

[[Page 217]]

to-trustee transfer from an eligible employer plan that maintains a 
qualified Roth contribution program described in section 402A of the 
Internal Revenue Code.
    (d) The TSP will accept a transfer or rollover only to the extent 
the transfer or rollover is permitted by the Internal Revenue Code.

[67 FR 17604, Apr. 11, 2002, as amended at 75 FR 78879, Dec. 17, 2010. 
Redesignated and amended at 77 FR 26423, May 4, 2012]



Sec.  1600.31  Methods for transferring eligible rollover 
distribution to the TSP.

    (a) Trustee-to-trustee transfer. (1) A participant may request that 
the administrator or trustee of an eligible employer plan or traditional 
IRA transfer any or all of his or her account directly to the TSP by 
executing and submitting the appropriate TSP form to the administrator 
or trustee. The administrator or trustee must complete the appropriate 
section of the form and forward the completed form and the distribution 
to the TSP record keeper or the Agency must receive sufficient evidence 
from which to reasonably conclude that a contribution is a valid 
rollover contribution (as defined by 26 CFR 1.401(a)(31)-1, Q&A-14). By 
way of example, sufficient evidence to conclude a contribution is a 
valid rollover contribution includes a copy of the plan's determination 
letter, a letter or other statement from the plan administrator or 
trustee indicating that it is an eligible employer plan or traditional 
IRA, a check indicating that the contribution is a direct rollover, or a 
tax notice from the plan to the participant indicating that the 
participant could receive a rollover from the plan.
    (2) If the distribution is from a Roth account maintained by an 
eligible employer plan, the plan administrator must also provide to the 
TSP a statement indicating the first year of the participant's Roth 5 
year non-exclusion period under the distributing plan and either:
    (i) The portion of the trustee-to-trustee transfer amount that 
represents Roth contributions (i.e. basis); or
    (ii) A statement that the entire amount of the trustee-to-trustee 
transfer is a qualified Roth distribution (as defined by Internal 
Revenue Code section 402A(d)(2))
    (b) Rollover by participant. A participant who has already received 
a distribution from an eligible employer plan or traditional IRA may 
roll over all or part of the distribution into the TSP. However, the TSP 
will not accept a rollover by the participant of Roth funds distributed 
from an eligible employer plan. A distribution of Roth funds from an 
eligible employer plan may be rolled into the TSP by trustee-to-trustee 
transfer only. The TSP will accept a rollover by the participant of tax-
deferred amounts if the following requirements and conditions are 
satisfied:
    (1) The participant must complete the appropriate TSP form.
    (2) The administrator or trustee must either complete the 
appropriate section of the form and forward the completed form and the 
distribution to the TSP record keeper or the Agency must receive 
sufficient evidence from which to reasonably conclude that a 
contribution is a valid rollover contribution. By way of example, 
sufficient evidence to conclude a contribution is a valid rollover 
contribution includes a copy of the plan's determination letter, a 
letter or other statement from the plan indicating that it is an 
eligible employer plan or traditional IRA, a check indicating that the 
contribution is a direct rollover, or a tax notice from the plan to the 
participant indicating that the participant could receive a rollover 
from the plan.
    (3) The participant must submit the completed TSP form, together 
with a certified check, cashier's check, cashier's draft, money order, 
treasurer's check from a credit union, or personal check, made out to 
the ``Thrift Savings Plan,'' for the entire amount of the rollover. A 
participant may roll over the full amount of the distribution by making 
up, from his or her own funds, the amount that was withheld from the 
distribution for the payment of Federal taxes.
    (4) The transaction must be completed within 60 days of the 
participant's receipt of the distribution from

[[Page 218]]

his or her eligible employer plan or traditional IRA. The transaction is 
not complete until the TSP record keeper receives the appropriate TSP 
form, executed by the participant and administrator, trustee, or 
custodian, together with the guaranteed funds for the amount to be 
rolled over.
    (c) Participant's certification. When transferring a distribution to 
the TSP by either a trustee-to-trustee transfer or a rollover, the 
participant must certify that the distribution is eligible for transfer 
into the TSP, as follows:
    (1) Distribution from an eligible employer plan. The participant 
must certify that the distribution:
    (i) Is not one of a series of substantially equal periodic payments 
made over the life expectancy of the participant (or the joint lives of 
the participant and designated beneficiary, if applicable) or for a 
period of 10 years or more;
    (ii) Is not a minimum distribution required by I.R.C. section 
401(a)(9) (26 U.S.C. 401(a)(9));
    (iii) Is not a hardship distribution;
    (iv) Is not a plan loan that is deemed to be a taxable distribution 
because of default;
    (v) Is not a return of excess elective deferrals; and
    (vi) If not transferred or rolled over, would be includible in gross 
income for the tax year in which the distribution is paid. This 
paragraph shall not apply to Roth funds distributed from an eligible 
employer plan.
    (2) Distribution from a traditional IRA. The participant must 
certify that the distribution:
    (i) Is not a minimum distribution required under I.R.C. section 
401(a)(9) (26 U.S.C. 401(a)(9)); and
    (ii) If not transferred or rolled over, would be includible in gross 
income for the tax year in which the distribution is paid.

[67 FR 17604, Apr. 11, 2002, as amended at 68 FR 35495, June 13, 2003; 
72 FR 53413, Sept. 19, 2007. Redesignated and amended at 77 FR 26423, 
May 4, 2012]



Sec.  1600.32  Treatment accorded transferred funds.

    (a) All funds transferred to the TSP pursuant to Sec. Sec.  1600.30 
and 1600.31 will be treated as employee contributions.
    (b) All funds transferred to the TSP pursuant to Sec. Sec.  1600.30 
and 1600.31 will be invested in accordance with the participant's 
contribution allocation on file at the time the transfer is completed.
    (c) Funds transferred to the TSP pursuant to Sec. Sec.  1600.30 and 
1600.31 are not subject to the limits on contributions described in 
Sec.  1600.22.

[66 FR 22089, May 2, 2001. Redesignated and amended at 77 FR 26424, May 
4, 2012]



Sec.  1600.33  Combining uniformed services accounts and civilian accounts.

    Uniformed services TSP account balances and civilian TSP account 
balances may be combined (thus producing one account), subject to the 
following rules:
    (a) An account balance can be combined with another once the TSP is 
informed (by the participant's employing agency) that the participant 
has separated from Government service.
    (b) Tax-exempt contributions may not be transferred from a uniformed 
services TSP account to a civilian TSP account.
    (c) A traditional balance and a Roth balance cannot be combined.
    (d) Funds transferred to the gaining account will be allocated among 
the TSP Funds according to the contribution allocation in effect for the 
account into which the funds are transferred.
    (e) Funds transferred to the gaining account will be treated as 
employee contributions and otherwise invested as described at 5 CFR part 
1600.
    (f) A uniformed service member must obtain the consent of his or her 
spouse before combining a uniformed services TSP account balance with a 
civilian account that is not subject to FERS spousal rights. A request 
for an exception to the spousal consent requirement will be evaluated 
under the rules explained in 5 CFR part 1650.
    (g) Before the accounts can be combined, any outstanding loans from 
the losing account must be closed as described in 5 CFR part 1655.

[77 FR 26424, May 4, 2012]

[[Page 219]]



                 Subpart E_Automatic Enrollment Program

    Authority: Sec. 102, Pub. L. 111-31, div. B. tit. I, 123 Stat. 1776, 
1853 (5 U.S.C. 8432(b)(2)(A)).

    Source: 75 FR 43800, July 27, 2010, unless otherwise noted.



Sec.  1600.34  Automatic enrollment program.

    (a) All newly hired civilian employees who are eligible to 
participate in the Thrift Savings Plan and those civilian employees who 
are rehired after a separation in service of 31 or more calendar days 
and who are eligible to participate in the TSP will automatically have 
3% of their basic pay contributed to the employee's traditional TSP 
balance (default employee contribution) unless, by the end of the 
employee's first pay period (subject to the agency's processing time 
frames), they elect:
    (1) To not contribute;
    (2) To contribute at some other level; or
    (3) To make Roth contributions in addition to, or in lieu of, 
traditional contributions.
    (b) All uniformed service members who either enter service on or 
after January 1, 2018 or re-enter service after a separation in service 
of 31 or more calendar days after having been covered by BRS at the time 
of separation will automatically have 3% of their basic pay contributed 
to the member's traditional TSP balance (default employee contribution) 
beginning the first full pay period following the date that is 60 days 
after the member's PEBD unless they elect by the end of that 60 day 
period:
    (1) To not contribute;
    (2) To contribute at some other level; or
    (3) To make Roth contributions in addition to, or in lieu of, 
traditional contributions.
    (c) If, for any calendar year, a uniformed service member described 
in paragraph (b) of this section does not make a contribution in the 
final full pay period of such calendar year due to the member's election 
to terminate contributions prior to the final full pay period, then that 
member will automatically have 3% of his or her basic pay contributed to 
his or her traditional TSP balance beginning the first full pay period 
of the following calendar year unless he or she makes a subsequent 
election by December 31st:
    (1) To not contribute;
    (2) To contribute at some other level;
    (3) To make Roth contributions in addition to, or in lieu of, 
traditional contributions.

[82 FR 60102, Dec. 19, 2017]



Sec.  1600.35  Refunds of default employee contributions.

    (a) Subject to the limitations in paragraph (f) of this section, a 
participant may request a refund of any default employee contributions 
made on his or her behalf (i.e., the contributions made while under the 
automatic enrollment program) provided the request is received within 90 
days after the date that the first default employee contribution was 
processed. The election must be made on the TSP's refund request form 
and must be received by the TSP's record keeper prior to the expiration 
of the 90-day period.
    (1) The distribution of a refund will be reported as income to the 
participant on IRS Form 1099-R, but it will not be subject to the 
additional tax under 26 U.S.C. 72(t) (the early withdrawal penalty tax).
    (2) A participant who requests a refund will receive the amount of 
any default employee contributions (adjusted for allocable gains and 
losses).
    (3) Processing of refunds will be subject to the rules set out at 5 
CFR part 1650.
    (b) A participant will no longer be considered to be covered by the 
automatic enrollment program if the participant files a contribution 
election. Consequently, if a participant makes a contribution election 
during the 90-day period, the participant will only be eligible to 
receive as a refund an amount equal to his or her default employee 
contributions (adjusted for allocable gains and losses).
    (c) After the expiration of the period allowed for the refund, any 
withdrawal must be made pursuant to 5 U.S.C. 8433 and 5 CFR part 1650.

[[Page 220]]

    (d) A married participant may request a refund of default employee 
contributions without obtaining the consent of his or her spouse or 
having the TSP notify the spouse of the request.
    (e) The rules applicable to frozen accounts (5 CFR 1650.3) and 
applicable to deceased participants (5 CFR 1650.6) also apply to refunds 
of the default employee contributions.
    (f) A participant may not receive a refund of default employee 
contributions made pursuant to Sec.  1600.34(c).

[75 FR 43800, July 27, 2010, as amended at 82 FR 60103, Dec. 19, 2017]



Sec.  1600.36  Matching contributions.

    (a) A participant is not entitled to keep the matching contributions 
and their associated earnings that are attributable to refunded default 
employee contributions.
    (b) The matching contributions and associated earnings attributable 
to refunded default employee contributions shall be forfeited to the TSP 
and used to offset administrative expenses.



Sec.  1600.37  Notice.

    The Board shall furnish all new employees and all rehired employees 
covered by the automatic enrollment program, and all employees described 
in paragraph (c) of Sec.  1600.34, covered by the automatic enrollment 
program a notice that accurately describes:
    (a) That default employee contributions equal to 3 percent of the 
employee's basic pay will be deducted from the employee's pay and 
contributed to the employee's traditional TSP balance on the employee's 
behalf if the employee does not make an affirmative contribution 
election;
    (b) The employee's right to elect to not have default employee 
contributions made to the TSP on the employee's behalf, to elect to have 
a different percentage or amount of basic pay contributed to the TSP, or 
to make Roth contributions;
    (c) The fund in which the default employee and agency contributions 
will be invested unless the employee makes a contribution allocation;
    (d) The employee's ability (or inability) to request a refund of any 
default employee contributions (adjusted for allocable gains and losses) 
and the procedure to request such a refund; and
    (e) That an investment in any fund other than the G Fund is made at 
the employee's risk, that the employee is not protected by the United 
States Government or the Board against any loss on the investment, and 
that neither the United States Government nor the Board guarantees any 
return on the investment.

[75 FR 43800, July 27, 2010, as amended at 77 FR 26424, May 4, 2012; 80 
FR 52173, Aug. 28, 2015; 82 FR 60103, Dec. 19, 2017]



PART 1601_PARTICIPANTS' CHOICES OF TSP FUNDS--Table of Contents



                            Subpart A_General

Sec.
1601.1 Definitions.

                   Subpart B_Investing Future Deposits

1601.11 Applicability
1601.12 Investing future deposits in the TSP Funds.
1601.13 Elections.

    Subpart C_Redistributing Participants' Existing Account Balances 
                          (Interfund Transfers)

1601.21 Applicability.
1601.22 Methods of requesting an interfund transfer.

   Subpart D_Contribution Allocations and Interfund Transfer Requests

1601.31 Applicability.
1601.32 Timing and posting dates.
1601.33 Acknowledgment of risk.
1601.34 Error correction.

                        Subpart E_Lifecycle Funds

1601.40 Lifecycle Funds.

    Authority: 5 U.S.C. 8351, 8432d, 8438, 8474(b)(5) and (c)(1).

    Source: 66 FR 22093, May 2, 2001, unless otherwise noted.



                            Subpart A_General



Sec.  1601.1  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this part:

[[Page 221]]

    Acknowledgment of risk means an acknowledgment that any investment 
in a TSP Fund other than the G Fund is made at the participant's risk, 
that the participant is not protected by the United States Government or 
the Board against any loss on the investment, and that neither the 
United States Government nor the Board guarantees any return on the 
investment.

[68 FR 35495, June 13, 2003, as amended at 70 FR 32207, June 1, 2005]



                   Subpart B_Investing Future Deposits

    Source: 68 FR 35495, June 13, 2003, unless otherwise noted.



Sec.  1601.11  Applicability.

    This subpart applies only to the investment of future deposits to 
the TSP's TSP Funds, including contributions, loan payments, and 
transfers or rollovers from traditional IRAs and eligible employer 
plans; it does not apply to redistributing participants' existing 
account balances among the TSP Funds, which is covered in subpart C of 
this part.

[68 FR 35495, June 13, 2003, as amended at 70 FR 32207, June 1, 2005]



Sec.  1601.12  Investing future deposits in the TSP Funds.

    (a) Allocation. Future deposits in the TSP, including contributions, 
loan payments, and transfers or rollovers from traditional IRAs and 
eligible employer plans, will be allocated among the TSP Funds based on 
the most recent contribution allocation on file for the participant.
    (b) TSP Funds availability. All participants may elect to invest all 
or any portion of their deposits in any of the TSP Funds.

[70 FR 32207, June 1, 2005]



Sec.  1601.13  Elections.

    (a) Contribution allocation. Each participant may indicate his or 
her choice of TSP Funds for the allocation of future deposits by using 
the TSP website or the ThriftLine, or by completing and filing the 
appropriate paper TSP form with the TSP record keeper in accordance with 
the form's instructions. The following rules apply to contribution 
allocations:
    (1) Contribution allocations must be made in one percent increments. 
The sum of the percentages elected for all of the TSP Funds must equal 
100 percent;
    (2) The percentage elected by a participant for investment of future 
deposits in a TSP Fund will be applied to all sources of contributions 
and transfers (or rollovers) from traditional IRAs and eligible employer 
plans. A participant may not make different percentage elections for 
different sources of contributions;
    (3) The following default investment rules shall apply to civilian 
participants:
    (i) All deposits made on behalf of a civilian participant enrolled 
prior to September 5, 2015 who does not have a contribution allocation 
in effect will be invested in the G Fund. A civilian participant who is 
enrolled prior to September 5, 2015 and subsequently rehired on or after 
September 5, 2015 and has a positive account balance will be considered 
enrolled prior to September 5, 2015 for purposes of this paragraph; and
    (ii) All deposits made on behalf of a civilian participant first 
enrolled on or after September 5, 2015 who does not have a contribution 
allocation in effect will be invested in the age-appropriate TSP 
Lifecycle Fund;
    (iii) A civilian participant enrolled prior to September 5, 2015 who 
elects for the first time to invest in a TSP Fund other than the G Fund 
must execute an acknowledgement of risk in accordance with Sec.  
1601.33;
    (4) The following default investment rules shall apply to uniformed 
services participants:
    (i) All deposits made on behalf of a uniformed services participant 
who first entered service prior to January 1, 2018, has not elected to 
be covered by BRS, and does not have a contribution allocation in effect 
will be invested in the G Fund;
    (ii) All deposits made on behalf of a uniformed services participant 
who

[[Page 222]]

first entered service on or after January 1, 2018 and who does not have 
a contribution allocation in effect will be invested in the age-
appropriate TSP Lifecycle Fund;
    (iii) If a uniformed services participant makes an election to be 
covered by BRS as described in 5 CFR 1600.14 and does not have a 
contribution allocation in effect at the time of the election, then all 
deposits made after the date of such election will be invested in the 
age-appropriate TSP Lifecycle Fund. Deposits made prior to the date of 
the election will remain invested in the G Fund.
    (iv) A uniformed services participant who first entered service 
prior to January 1, 2018 and has not made an election to be covered by 
the BRS who elects for the first time to invest in a TSP Fund other than 
the G Fund must execute an acknowledgement of risk in accordance with 
Sec.  1601.33;
    (5) Once a contribution allocation becomes effective, it remains in 
effect until it is superseded by a subsequent contribution allocation or 
the participant's account balance is reduced to zero. If a rehired 
participant has a positive account balance and a contribution allocation 
in effect, then the participant's contribution allocation will remain in 
effect until a new allocation is made. If, however, the participant 
(other than a participant described in paragraph (a)(4)(i) of this 
section) has a zero account balance, then the participant's 
contributions will be allocated to the age-appropriate TSP Lifecycle 
Fund until a new allocation is made.
    (b) Effect of rejection of contribution allocation. If a participant 
does not correctly complete a contribution allocation, the attempted 
allocation will have no effect. The TSP will provide the participant 
with a written statement of the reason the transaction was rejected.
    (c) Contribution elections. A participant may designate the amount 
or type of employee contributions he or she wishes to make to the TSP or 
may stop contributions only in accordance with 5 CFR part 1600.

[82 FR 60103, Dec. 19, 2017]



    Subpart C_Redistributing Participants' Existing Account Balances 
                          (Interfund Transfers)

    Source: 68 FR 35495, June 13, 2003, unless otherwise noted.



Sec.  1601.21  Applicability.

    This subpart applies only to interfund transfers, which involve 
redistributing participants' existing account balances among the TSP 
Funds; it does not apply to the investment of future deposits, which is 
covered in subpart B of this part.

[68 FR 35495, June 13, 2003, as amended at 70 FR 32208, June 1, 2005]



Sec.  1601.22  Methods of requesting an interfund transfer.

    (a) Participants may make an interfund transfer using the TSP Web 
site or the ThriftLine, or by completing and filing the appropriate 
paper TSP form with the TSP record keeper in accordance with the form's 
instructions. The following rules apply to an interfund transfer 
request:
    (1) Interfund transfer requests must be made in whole percentages 
(one percent increments). The sum of the percentages elected for all of 
the TSP Funds must equal 100 percent.
    (2) The percentages elected by the participant will be applied to 
the balances in each source of contributions and to both tax-deferred 
and tax-exempt balances on the effective date of the interfund transfer.
    (b) An interfund transfer request has no effect on deposits made 
after the effective date of the interfund transfer request; subsequent 
deposits will continue to be allocated among the investment funds in 
accordance with the participant's contribution allocation made under 
subpart B of this part.
    (c) If an interfund transfer is found to be invalid pursuant to 
Sec.  1601.34, the purported transfer will not be made. The TSP will 
provide the participant with a written statement of the reason the 
transaction was rejected.

[70 FR 32208, June 1, 2005, as amended at 80 FR 52174, Aug. 28, 2015]

[[Page 223]]



   Subpart D_Contribution Allocations and Interfund Transfer Requests



Sec.  1601.31  Applicability.

    This subpart applies both to contribution allocations made under 
subpart B of this part and interfund transfers made under subpart C of 
this part.



Sec.  1601.32  Timing and posting dates.

    (a) Posting dates. The date on which the TSP processes or posts a 
contribution allocation or interfund transfer request (transaction 
request) is subject to a number of factors, including some that are 
outside of the control of the TSP, such as power outages, the failure of 
telephone service, unusually heavy transaction volume, and acts of God. 
These factors also could affect the availability of the TSP Web site and 
the ThriftLine. Therefore, the TSP cannot guarantee that a transaction 
request will be processed on a particular day. However, the TSP will 
process transaction requests under ordinary circumstances according to 
the following rules:
    (1) A transaction request entered into the TSP record keeping system 
by a participant who uses the TSP Web site or the ThriftLine, or by a 
TSP Service Office participant service representative at the 
participant's request, before 12 noon eastern time of any business day, 
will ordinarily be posted that business day. A transaction request 
entered into the system at or after 12 noon eastern time of any business 
day will ordinarily be posted on the next business day.
    (2) A transaction request made on the TSP Web site or the ThriftLine 
on a non-business day will ordinarily be posted on the next business 
day.
    (3) A transaction request made on a paper TSP form will ordinarily 
be posted under the rules in paragraph (a)(1) of this section, based on 
when the TSP record keeper enters the form into the TSP system. The TSP 
record keeper ordinarily enters such forms into the system within 24 
hours of their receipt.
    (4) In most cases, the share price(s) applied to an interfund 
transfer request is the value of the shares on the date the relevant 
transaction is posted. In some circumstances, such as error correction, 
the share price(s) for an earlier date will be used.
    (b) Limit. There is no limit on the number of contribution 
allocation requests. A participant may make two unrestricted interfund 
transfers (account rebalancings) per account (e.g., civilian or 
uniformed services), per calendar month. An interfund transfer will 
count toward the monthly total on the date posted by the TSP and not on 
the date requested by a participant. After a participant has made two 
interfund transfers in a calendar month, the participant may make 
additional interfund transfers only into the G Fund until the first day 
of the next calendar month.

[70 FR 32208, June 1, 2005, as amended at 72 FR 73252, Dec. 27, 2007; 73 
FR 22057, Apr. 24, 2008; 75 FR 68169, Nov. 5, 2010]



Sec.  1601.33  Acknowledgment of risk.

    (a) Uniformed services participants who first entered service prior 
to January 1, 2018 and who have not elected to be covered by BRS and 
civilian participants who enrolled prior to September 5, 2015 must 
execute an acknowledgement of risk in order to invest in a TSP Fund 
other than the G Fund. If a required acknowledgment of risk has not been 
executed, no transactions involving the fund(s) for which the 
acknowledgment is required will be accepted.
    (b) The acknowledgment of risk may be executed in association with a 
contribution allocation or an interfund transfer using the TSP Web site, 
the ThriftLine, or a paper TSP form.

[70 FR 32208, June 1, 2005, as amended at 80 FR 52174, Aug. 28, 2015; 82 
FR 60103, Dec. 19, 2017]



Sec.  1601.34  Error correction.

    Errors in processing contribution allocations and interfund transfer 
requests, or errors that otherwise cause money to be invested in the 
wrong investment fund, will be corrected in accordance with the error 
correction regulations found at 5 CFR part 1605.

[66 FR 22093, May 2, 2001. Redesignated at 70 FR 32208, June 1, 2005]

[[Page 224]]



                        Subpart E_Lifecycle Funds



Sec.  1601.40  Lifecycle Funds.

    The Executive Director will establish TSP Lifecycle Funds, which are 
target date asset allocation portfolios. The TSP Lifecycle Funds will 
invest solely in the funds established by the TSP pursuant to 5 U.S.C. 
8438.

[70 FR 32208, June 1, 2005]



PART 1603_VESTING--Table of Contents



Sec.
1603.1 Definitions.
1603.2 Basic vesting rules.
1603.3 Service requirements.

    Authority: 5 U.S.C. 8432(g), 8432b(h)(1), 8474(b)(5) and (c)(1).

    Source: 52 FR 29835, Aug. 12, 1987, unless otherwise noted.



Sec.  1603.1  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this part:
    Civilian service means:
    (1) Any non-military service that is creditable under either 5 
U.S.C. chapter 83, subchapter III, or 5 U.S.C. 8411. However, that 
service is to be determined without regard to any time limitations, any 
deposit or redeposit requirements contained in those statutory 
provisions after performing the service involved, or any requirement 
that the individual give written notice of that individual's desire to 
become subject to the retirement system established by 5 U.S.C. chapters 
83 or 84; or
    (2) Any military service creditable under the provisions of 5 U.S.C. 
8432b(h)(1) and the regulations at 5 CFR part 1620, subpart H.
    Uniformed services means the Army, Navy, Air Force, Marine Corps, 
Coast Guard, Public Health Service, and National Oceanic and Atmospheric 
Administration, as well as members of the Ready Reserve including the 
National Guard.
    Military service means service that is creditable under 37 U.S.C. 
205.
    Vested means those amounts in an individual account which are 
nonforfeitable.
    Year of service means one full calendar year of service.

[68 FR 35497, June 13, 2003, as amended at 82 FR 60104, Dec. 19, 2017]



Sec.  1603.2  Basic vesting rules.

    (a) All amounts in a CSRS employee's individual account are 
immediately vested.
    (b) Except as provided in paragraph (c) of this section, all amounts 
in a FERS employee's or uniformed service member's individual account 
(including all first conversion contributions) are immediately vested.
    (c) Except as provided in paragraph (d) of this section, upon 
separation from Government service without meeting the applicable 
service requirements of Sec.  1603.3, a FERS employee's or a BRS 
uniformed service member's Agency Automatic (1%) Contributions and 
attributable earnings will be forfeited.
    (d) If a FERS employee or uniformed service member dies (or died) 
after January 7, 1988, without meeting the applicable service 
requirements set forth in Sec.  1603.3, the Agency Automatic (1%) 
Contributions and attributable earnings in his or her individual account 
are deemed vested and shall not be forfeited. If a FERS employee died on 
or before January 7, 1988, without meeting those service requirements, 
his or her Agency Automatic (1%) Contributions and attributable earnings 
are forfeited to the Thrift Savings Plan.

[82 FR 60104, Dec. 19, 2017]



Sec.  1603.3  Service requirements.

    (a) Except as provided under paragraph (b) of this section, FERS 
employees will be vested in their Agency Automatic (1%) Contributions 
and attributable earnings upon separating from Government only if, as of 
their separation date, they have completed three years of civilian 
service.
    (b) FERS employees will be vested in their Agency Automatic (1%) 
Contributions and attributable earnings upon separating from Government 
service if, as of their separation date, they have completed two years 
of civilian service and they are serving in one of the following 
positions:

[[Page 225]]

    (1) A position in the Senior Executive Service as a non-career 
appointee (as defined in 5 U.S.C. 3132(a)(7));
    (2) Positions listed in 5 U.S.C. 5312, 5313, 5314, 5315 or 5316;
    (3) A position placed in level IV or level V of the Executive 
Schedule, pursuant to 5 U.S.C. 5317;
    (4) A position in the Executive Branch which is excepted from the 
competitive service by the Office of Personnel Management because of the 
confidential and policy-determining character of the position; or
    (5) A Member of Congress or a Congressional employee.
    (c) Uniformed service members who are covered by BRS will be vested 
in their Agency Automatic (1%) Contributions and attributable earnings 
upon separation from the uniformed services only if, as of their 
separation date, they have completed two years of military service.

[52 FR 29835, Aug. 12, 1987, as amended at 60 FR 24535, May 9, 1995; 62 
FR 33969, June 23, 1997; 82 FR 60104, Dec. 19, 2017]

                          PART 1604 [RESERVED]



PART 1605_CORRECTION OF ADMINISTRATIVE ERRORS--Table of Contents



                            Subpart A_General

Sec.
1605.1 Definitions.
1605.2 Calculating, posting, and charging breakage on late contributions 
          and loan payments.
1605.3 Calculating, posting, and charging breakage on errors involving 
          investment in the wrong fund.

                    Subpart B_Employing Agency Errors

1605.11 Makeup of missed or insufficient contributions.
1605.12 Removal of erroneous contributions.
1605.13 Back pay awards and other retroactive pay adjustments.
1605.14 Misclassified retirement system coverage.
1605.15 Reporting and processing late contributions and late loan 
          payments.
1605.16 Claims for correction of employing agency errors; time 
          limitations.
1605.17 Redesignation and recharacterization.

               Subpart C_Board or TSP Record Keeper Errors

1605.21 Plan-paid breakage and other corrections.
1605.22 Claims for correction of Board or TSP record keeper errors; time 
          limitations.

                   Subpart D_Miscellaneous Provisions

1605.31 Contributions missed as a result of military service.

    Authority: 5 U.S.C. 8351, 8432a, 8432d, 8474(b)(5) and (c)(1). 
Subpart B also issued under section 1043(b) of Public Law 104-106, 110 
Stat. 186 and Sec.  7202(m)(2) of Public Law 101-508, 104 Stat. 1388.

    Source: 66 FR 44277, Aug. 22, 2001, unless otherwise noted.



                            Subpart A_General



Sec.  1605.1  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this part:
    ``As of'' date means the date on which a TSP contribution or other 
transaction entailing acquisition of investment fund shares should have 
taken place. Employing agencies use this date on payment records to 
report makeup or late contributions or late loan payments.
    Attributable pay date means:
    (i) The pay date of a contribution that is being redesignated from 
traditional to Roth, or vice versa;
    (ii) In the case of the uniformed services, the pay date of a 
contribution that is being recharacterized from tax-deferred to tax-
exempt, or vice versa; or
    (iii) The pay date of an erroneous contribution for which a negative 
adjustment is being made. However, if the erroneous contribution for 
which a negative adjustment is being made was a makeup or late 
contribution, the attributable pay date is the ``as of'' date of the 
erroneous makeup or late contribution.
    Breakage means the loss incurred or the gain realized on makeup or 
late contributions. It is the difference between the value of the shares 
of the applicable investment fund(s) that would have been purchased had 
the contribution been made on the ``as of'' date and

[[Page 226]]

the value of the shares of the same investment fund(s) on the date the 
contribution is posted to the account.
    BRS participant means any member of the Uniformed Services described 
in 5 U.S.C. 8440e(e)(1).
    Error means any act or omission by the Board, the TSP Record Keeper, 
or the participant's employing agency that is not in accordance with 
applicable statutes, regulations, or administrative procedures that are 
made available to employing agencies and/or TSP participants. It does 
not mean an act or omission caused by events that are beyond the control 
of the Board, the TSP Record Keeper, or the participant's employing 
agency.
    FERCCA correction means the correction of a retirement coverage 
error pursuant to the Federal Erroneous Retirement Coverage Corrections 
Act, title II, Public Law 106-265, 114 Stat. 770.
    Late contributions means:
    (i) Employee contributions that were timely deducted from a 
participant's basic pay but were not timely reported to the TSP record 
keeper for investment;
    (ii) Employee contributions that were timely reported to the TSP but 
were not timely posted to the participant's account by the TSP because 
the payment record on which they were submitted contained errors;
    (iii) Agency matching contributions attributable to employee 
contributions referred to in paragraphs (i) or (ii) of this definition; 
and
    (iv) Delayed agency automatic (1%) contributions.
    Makeup contributions are employee contributions that should have 
been deducted from a participant's basic pay or employer contributions 
that should have been charged to an employing agency on an earlier date, 
but were not deducted or charged and, consequently, are being deducted 
or charged currently.
    Negative adjustment means the removal of money from a participant's 
TSP account by an employing agency.
    Negative adjustment record means a data record submitted by an 
employing agency to remove from a participant's TSP account money that 
the agency had previously submitted in error.
    Non-BRS participant means any member of the Uniformed Services not 
described in 5 U.S.C. 8440e(e)(1).
    Pay date means the date established by an employing agency for 
paying its employees or service members.
    Payment record means a data record submitted by an employing agency 
to report contributions or loan payments to a participant's TSP account.
    Recharacterization means the process of changing a contribution that 
the employing agency erroneously submitted as a tax-deferred 
contribution to a tax-exempt contribution (or vice versa). 
Recharacterization is a method of error correction only. It applies only 
to the traditional balance of a uniformed services account.
    Recharacterization record means a data record submitted by an 
employing agency to recharacterize a tax-deferred contribution that the 
employing agency erroneously submitted as a tax-exempt contribution (or 
vice versa).
    Redesignation means the process of moving a contribution (and its 
associated positive earnings) from a participant's traditional balance 
to the participant's Roth balance or vice versa in order to correct an 
employing agency error that caused the contribution to be submitted to 
the wrong balance. Redesignation is a method of error correction only. A 
participant cannot request the redesignation of contributions unless the 
employing agency made an error in the submission of the contributions.
    Redesignation record means a data record submitted by an employing 
agency to redesignate a contribution that the employing agency 
erroneously submitted to the wrong balance (traditional or Roth).

[68 FR 35497, June 13, 2003, as amended at 70 FR 32209, June 1, 2005; 77 
FR 26425, May 4, 2012; 82 FR 60104, Dec. 19, 2017]



Sec.  1605.2  Calculating, posting, and charging breakage 
on late contributions and loan payments.

    (a) The TSP will calculate breakage on late contributions, makeup 
agency contributions, and loan payments as described by Sec.  
1605.15(b). This breakage calculation is subject to the following rules:

[[Page 227]]

    (1) The TSP will not calculate breakage if contributions or loan 
payments are posted within 30 days of the ``as of'' date, or if the 
total amount on a late payment record or the total agency contributions 
on a current payment record is less than $1.00; and
    (2) The TSP will not take the participant's interfund transfers into 
account when determining breakage.
    (b) Calculating breakage. The TSP will calculate breakage as 
follows:
    (1) For contributions or loan payments with ``as of'' dates on or 
after January 1, 2000, the TSP will:
    (i) Use the participant's contribution allocation on file for the 
``as of'' date to determine how the funds would have been invested. If 
there is no contribution allocation on file, or one cannot be derived 
based on the investment of contributions, the TSP will consider the 
funds to have been invested in the default investment fund in effect for 
the participant on the ``as of'' date.
    (ii) Determine the number of shares of the applicable investment 
funds the participant would have received had the contributions or loan 
payments been made on time. If the ``as of'' date is before TSP account 
balances were converted to shares, this determination will be the number 
of shares the participant would have received on the conversion date, 
and will include the monthly earnings the participant would have 
received had the contributions or loan payments been made on the ``as 
of'' date; and
    (iii) Determine the dollar value on the posting date of the number 
of shares the participant would have received had the contributions or 
loan payments been made on time. If the contributions or loan payments 
would have been invested in a Lifecycle fund that is retired on the 
posting date, the constructed share price shall equal the retired 
Lifecycle fund share price on December 31 of the retirement year, 
multiplied by the current L Income Fund share price, divided by the L 
Income Fund share price on December 31 of the retirement year. The 
dollar value shall be the number of shares the participant would have 
received had the contributions or loan payments been made on time 
multiplied by the constructed share price.
    (iv) The difference between the dollar value of the contribution or 
loan payment on the posting date and the dollar value of the 
contribution or loan payment on the ``as of'' date is the breakage.
    (2) For contributions and loan payments with an ``as of'' date 
before January 1, 2000, the TSP will:
    (i) Value the contributions and loan payments from the ``as of'' 
date through the date TSP accounts were converted to shares, by using 
the greater of either the G Fund monthly rate of return or the average 
monthly rate of return for all TSP Funds;
    (ii) Determine the number of shares the participant would have 
received at conversion; and
    (iii) Determine the dollar value of those shares on the posting date 
by using the greater of either the G Fund share price or the average 
share price for all of the TSP Funds. The difference between the dollar 
value of the contribution or loan payment on the posting date and the 
dollar value of the contribution or loan payment on the ``as of'' date 
is the breakage.
    (c) Posting contributions and loan payments. Makeup and late 
contributions, late loan payments, and breakage, will be posted to the 
participant's account according to his or her contribution allocation on 
file for the posting date. If there is no contribution allocation on 
file for the posting date, they will be posted to the default investment 
fund in effect for the participant.
    (d) Charging breakage. If the dollar amount posted to the 
participant's account is greater than the dollar amount of the makeup or 
late contribution or late loan payment, the TSP will charge the agency 
the additional amount. If the dollar amount posted to the participant's 
account is less than the dollar amount of the makeup or late 
contribution, or late loan payment, the difference between the amount of 
the contribution and the amount posted will be forfeited to the TSP.
    (e) Posting of multiple contributions. If the TSP posts multiple 
makeup or late contributions or late loan payments with different ``as 
of'' dates for a participant on the same business day, the

[[Page 228]]

amount of breakage charged to the employing agency or forfeited to the 
TSP will be determined separately for each transaction, without netting 
any gains or losses attributable to different ``as of'' dates. In 
addition, gains and losses from different sources of contributions or 
different TSP Funds will not be netted against each other. Instead, 
breakage will be determined separately for each as-of date, TSP Fund, 
and source of contributions.

[70 FR 32209, June 1, 2005, as amended at 75 FR 74607, Dec. 1, 2010; 80 
FR 57069, Sept. 22, 2015]



Sec.  1605.3  Calculating, posting, and charging breakage on errors 
involving investment in the wrong fund.

    (a) The TSP will calculate and post breakage on date of birth errors 
that result in default investment in the wrong L Fund, contribution 
allocation errors, and interfund transfer errors.
    (b) The TSP will charge the employing agency for positive breakage 
on incorrect dates of birth caused by employing agency error that result 
in default investment in the wrong L Fund. A date of birth change 
received from an employing agency will not trigger corrective action 
other than to update the date of birth. To initiate a breakage 
calculation for an employee, the employing agency must notify the TSP 
that the participant is entitled to breakage.
    (c) If a uniformed services participant's retirement system is 
misclassified and the error results in default investment in the wrong 
fund, when the error is corrected pursuant to Sec.  1605.14(f)-(g), the 
TSP will charge the employing agency for any positive breakage that 
results from the incorrect default investment. The retirement 
misclassification correction received from an employing agency will not 
trigger corrective action other than to update the participant's 
retirement system coverage. To initiate a breakage calculation for the 
uniformed service member, the employing agency must notify the TSP that 
the participant is entitled to breakage.

[80 FR 57069, Sept. 22, 2015, as amended at 82 FR 60104, Dec. 19, 2017]



                    Subpart B_Employing Agency Errors



Sec.  1605.11  Makeup of missed or insufficient contributions.

    (a) Applicability. This section applies whenever, as the result of 
an employing agency error, a participant does not receive all of the TSP 
contributions to which he or she is entitled. This includes situations 
in which an employing agency error prevents a participant from making an 
election to contribute to his or her TSP account, in which an employing 
agency fails to implement a contribution election properly submitted by 
a participant, in which an employing agency fails to make agency 
automatic (1%) contributions or agency matching contributions that it is 
required to make, or in which an employing agency otherwise erroneously 
contributes less to the TSP for a participant's account than it should 
have. The corrections required by this section must be made in 
accordance with this part and the procedures provided to employing 
agencies by the Board in bulletins or other guidance. It is the 
responsibility of the employing agency to determine whether it has made 
an error that entitles a participant to error correction under this 
section.
    (b) Employer makeup contributions. If an employing agency has failed 
to make Agency Automatic (1%) Contributions that are required under 5 
U.S.C. 8432(c)(1)(A) and 5 U.S.C. 8440e(e)(3)(A), or Agency Matching 
Contributions that are required under section 8432(c)(2) and 5 U.S.C. 
8440e(e)(3)(B), the following rules apply:
    (1) The employing agency must promptly submit all missed 
contributions to the TSP record keeper on behalf of the affected 
participant. For each pay date involved, the employing agency must 
submit a separate payment record showing the ``as of'' date for the 
contributions.
    (2) The TSP will calculate the breakage due to the participant and 
post both the contributions and the associated breakage to the 
participant's account in accordance with Sec.  1605.2.
    (c) Employee makeup contributions. Within 30 days of receiving 
information

[[Page 229]]

from his or her employing agency indicating that the employing agency 
acknowledges that an error has occurred which has caused a smaller 
amount of employee contributions to be made to the participant's account 
than should have been made, a participant may elect to establish a 
schedule to make up the deficient contributions through future payroll 
deductions. Employee makeup contributions can be made in addition to any 
TSP contributions that the participant is otherwise entitled to make. 
The following rules apply to employee makeup contributions:
    (1) The schedule of makeup contributions elected by the participant 
must establish the dollar amount of the contributions and the type of 
employee contributions (traditional or Roth) to be made each pay period 
over the duration of the schedule. The contribution amount per pay 
period may vary during the course of the schedule, but the total amount 
to be contributed must be established when the schedule is created. 
After the schedule is created, a participant may, with the agreement of 
his or her agency, elect to change his or her payment amount (e.g., to 
accelerate payment) or elect to change the type of employee 
contributions (traditional or Roth). The length of the schedule may not 
exceed four times the number of pay periods over which the error 
occurred.
    (2) At its discretion, an employing agency may set a ceiling on the 
length of a schedule of employee makeup contributions which is less than 
four times the number of pay periods over which the error occurred. The 
ceiling may not, however, be less than twice the number of pay periods 
over which the error occurred.
    (3) The employing agency must implement the participant's schedule 
of makeup contributions as soon as practicable.
    (4) For each pay date involved, the employing agency must submit a 
separate payment record showing the ``as of'' date for which the 
employee contribution should have been made. An employee is not eligible 
to make up contributions with an ``as of'' date occurring during a 
period of six months following a financial hardship in-service 
withdrawal, as provided in 5 CFR 1650.33. An employee may make up 
contributions during a period of ineligibility due to a hardship 
withdrawal as long as the ``as of'' date is for an earlier period.
    (5) Employee makeup contributions will be invested in accordance 
with the participant's current contribution allocation. The number of 
shares of each TSP Fund which will be purchased will be determined by 
dividing the amount of the makeup contributions by the share price of 
the applicable fund(s) on the posting date.
    (6) Employee makeup contributions will be included for purposes of 
applying the annual limit contained in Internal Revenue Code (I.R.C.) 
section 402(g) (26 U.S.C. 402(g)(1)). For purposes of applying that 
limit, employee makeup contributions will be applied against the limit 
for the year of the ``as of'' date.
    (i) Before establishing a schedule of employee makeup contributions, 
the employing agency must review any schedule proposed by the affected 
participant, as well as the participant's prior TSP contributions, if 
any, to determine whether the makeup contributions, when combined with 
prior contributions for the same year, would exceed the annual 
contribution limit(s) contained in I.R.C. section 402(g) for the year(s) 
with respect to which the contributions are being made.
    (ii) The employing agency must not permit contributions that, when 
combined with prior contributions, would exceed the applicable annual 
contribution limit contained in I.R.C. section 402(g).
    (7) A schedule of employee makeup contributions may be suspended if 
a participant has insufficient net pay to permit the makeup 
contributions. If this happens, the period of suspension should not be 
counted against the maximum number of pay periods to which the 
participant is entitled in order to complete the schedule of makeup 
contributions.
    (8) A participant may elect to terminate a schedule of employee 
makeup contributions at any time, but a termination is irrevocable. If a 
participant separates from Government service, the participant may elect 
to accelerate the payment schedule by a lump sum

[[Page 230]]

contribution from his or her final paycheck.
    (9) At the same time that a participant makes up missed employee 
contributions, the employing agency must make any agency matching 
contributions that would have been made had the error not occurred. 
Agency matching contributions must be submitted pursuant to the rules 
set forth in paragraph (b) of this section. A participant may not 
receive matching contributions associated with any employee 
contributions that are not actually made up. If employee makeup 
contributions are suspended in accordance with paragraph (c)(7) of this 
section, the payment of agency matching contributions must also be 
suspended.
    (10) If a participant transfers to an employing agency different 
from the one by which the participant was employed at the time of the 
missed contributions, it remains the responsibility of the former 
employing agency to determine whether employing agency error was 
responsible for the missed contributions. If it is determined that such 
an error has occurred, the current agency must take any necessary steps 
to correct the error. The current agency may seek reimbursement from the 
former agency of any amount that would have been paid by the former 
agency had the error not occurred.
    (11) Employee makeup contributions may be made only by payroll 
deduction from basic pay or, for uniformed services participants, from 
basic pay, incentive pay, or special pay, including bonus pay. 
Contributions by check, money order, cash, or other form of payment 
directly from the participant to the TSP, or from the participant to the 
employing agency for deposit to the TSP, are not permitted.
    (12) A participant is not eligible to contribute makeup 
contributions with an ``as of'' date occurring prior to May 5, 2012 to 
his or her Roth balance.
    (13) If the ``as of'' date of a Roth contribution that is submitted 
as a makeup contribution is earlier than the participant's existing Roth 
initiation date, the TSP will adjust the participant's Roth initiation 
date.
    (d) Missed bonus contributions. This paragraph (d) applies when an 
employing agency fails to implement a contribution election that was 
properly submitted by a uniformed service member requesting that a TSP 
contribution be deducted from bonus pay. Within 30 days of receiving the 
employing agency's acknowledgment of the error, a uniformed service 
member may establish a schedule of makeup contributions with his or her 
employing agency to replace the missed contribution through future 
payroll deductions. These makeup contributions can be made in addition 
to any TSP contributions that the uniformed service member is otherwise 
entitled to make.
    (1) The schedule of makeup contributions may not exceed four times 
the number of months it would take for the uniformed service member to 
earn basic pay equal to the dollar amount of the missed contribution. 
For example, a uniformed service member who earns $29,000 yearly in 
basic pay and who missed a $2,500 bonus contribution to the TSP can 
establish a schedule of makeup contributions with a maximum duration of 
8 months. This is because it takes the uniformed service member 2 months 
to earn $2,500 in basic pay (at $2,416.67 per month).
    (2) At its discretion, an employing agency may set a ceiling on the 
length of a schedule of employee makeup contributions. The ceiling may 
not, however, be less than twice the number of months it would take for 
the uniformed service member to earn basic pay equal to the dollar 
amount of the missed contribution.

[68 FR 35498, June 13, 2003, as amended at 70 FR 32210, June 1, 2005; 77 
FR 26425, May 4, 2012; 82 FR 60104, Dec. 19, 2017]



Sec.  1605.12  Removal of erroneous contributions.

    (a) Applicability. This section applies to the removal of funds 
erroneously contributed to the TSP. The TSP calls this action a negative 
adjustment, and agencies may only request negative adjustments of 
erroneous contributions made on or after January 1, 2000. Excess 
contributions addressed by this section include, for example, excess 
employee contributions that result

[[Page 231]]

from employing agency error and excess employer contributions. This 
section does not address excess contributions resulting from a FERCCA 
correction; those contributions are addressed in Sec.  1605.14.
    (b) Method of correction. Negative adjustment records must be 
submitted by employing agencies in accordance with this part and any 
other procedures provided by the Board.
    (1) To remove money from a participant's account, the employing 
agency must submit, for each attributable pay date involved, a negative 
adjustment record stating the attributable pay date and the amount, by 
source, of the erroneous contribution.
    (2) A negative adjustment record may be for any part of the 
contributions made for the attributable pay date. However, for each 
source of contributions, the negative adjustment may not exceed the 
amount of the contributions made for that date, minus any prior negative 
adjustments for the same date.
    (c) Processing negative adjustments. To determine current value, a 
negative adjustment will be allocated among the TSP Funds as it would 
have been allocated on the attributable pay period (as reported by the 
employing agency).
    (1) If the attributable pay date for the erroneous contribution is 
on or before the date TSP accounts were converted to shares (and on or 
after January 1, 2000), the TSP will, for each source of contributions 
and investment fund:
    (i) Determine the dollar value of the amount to be removed by using 
the monthly returns for the applicable TSP Fund;
    (ii) Determine the number of shares that the dollar value determined 
in paragraph (c)(1)(i) of this section would have purchased on the 
conversion date; and
    (iii) Multiply the price per share for the date the adjustment is 
posted by the number of shares calculated in paragraph (c)(1)(ii) of 
this section.
    (2) If the attributable pay date of the negative adjustment is after 
the date TSP accounts were converted to shares, the TSP will, for each 
source of contributions and TSP Fund:
    (i) Determine the number of shares that represent the amount of the 
contribution to be removed using the share price on the attributable pay 
date; and
    (ii) Multiply the price per share on the date the adjustment is 
posted by the number of shares calculated in paragraph (c)(2)(i) of this 
section. If the contribution was erroneously contributed to a Lifecycle 
fund that is retired on the date the adjustment is posted, the price per 
share shall equal the retired Lifecycle fund share price on December 31 
of the retirement year, multiplied by current L Income Fund share price, 
divided by the L Income Fund share price on December 31 of the 
retirement year.
    (d) Employee contributions. The following rules apply to negative 
adjustments involving employee contributions:
    (1) If, on the posting date, the amount calculated under paragraph 
(c) of this section is equal to or greater than the amount of the 
proposed negative adjustment, the full amount of the adjustment will be 
removed from the participant's account and returned to the employing 
agency. Earnings on the erroneous contribution will remain in the 
participant's account. However, positive earnings on an erroneous 
contribution to the participant's Roth balance will be moved to the 
participant's traditional balance;
    (2) If, on the posting date, the amount calculated under paragraph 
(c) of this section is less than the amount of the proposed negative 
adjustment, the amount of the adjustment, reduced by the investment 
loss, will be removed from the participant's account and returned to the 
employing agency. However, the employing agency must refund to the 
participant the full amount of the erroneous contribution;
    (3) If an employing agency requests the removal of erroneous 
employee contributions from a participant's account, it must also 
request the removal, under paragraph (e) of this section, of any 
attributable agency matching contributions; and
    (4) If all employee contributions are removed from a participant's 
account under the rules set forth in this section, the earnings 
attributable to those

[[Page 232]]

contributions will remain in the account until the participant removes 
them with an in-service or a post-employment withdrawal. If the 
participant is not eligible to maintain a TSP account, the employing 
agency must submit an employee data record to the TSP indicating that 
the participant has separated from Federal service (this will allow the 
TSP-ineligible participant to make a post-employment withdrawal 
election).
    (e) Employer contributions. The following rules apply to negative 
adjustments involving erroneous employer contributions:
    (1) The amount calculated under paragraph (c) of this section will 
be removed from the participant's account.
    (2) Erroneous employer contributions will be returned to the 
employing agency only if the negative adjustment record is posted by the 
TSP record keeper within one year of the date the erroneous contribution 
was posted. If one year or more has elapsed when the negative adjustment 
record is posted, the amount computed under paragraph (c) of this 
section will be removed from the participant's account and used to 
offset TSP administrative expenses;
    (3) If the erroneous contribution has been in the participant's 
account for less than one year when the negative adjustment record is 
posted and the amount computed under paragraph (c) of this section is 
equal to or greater than the amount of the adjustment, the employing 
agency will receive the full amount of the erroneous contribution. Any 
earnings attributable to the erroneous contribution will be removed from 
the participant's account and used to offset TSP administrative 
expenses;
    (4) If the erroneous contribution has been in the participant's 
account for less than one year when the negative adjustment record is 
posted, and the amount computed under paragraph (c) of this section is 
less than the amount of the adjustment, the employing agency will 
receive the amount of the erroneous contribution reduced by the 
investment loss; and
    (5) An employing agency's obligation to submit negative adjustment 
records to remove erroneous contributions from a participant's account 
is not affected by the length of time the contributions have been in the 
account.
    (f)(1) If multiple negative adjustments for the same attributable 
pay date for a participant are posted on the same business day, the 
amount removed from the participant's account and used to offset TSP 
administrative expenses, or returned to the employing agency, will be 
determined separately for each adjustment. Earnings and losses for 
erroneous contributions made on different dates will not be netted 
against each other. In addition, for a negative adjustment for any 
attributable pay date, gains and losses from different sources of 
contributions or different TSP Funds will not be netted against each 
other. Instead, for each attributable pay date each source of 
contributions and each TSP Fund will be treated separately for purposes 
of these calculations. The amount computed by applying the rules in this 
section will be removed from the participant's account pro rata from all 
funds, by source, based on the allocation of the participant's account 
among the TSP Funds when the transaction is posted; and
    (2) If there is insufficient money in the same source of 
contributions to cover the amount to be removed or the amount of the 
requested adjustment, the negative adjustment record will be rejected.

[70 FR 32210, June 1, 2005, as amended at 75 FR 74608, Dec. 1, 2010; 77 
FR 26425, May 4, 2012]



Sec.  1605.13  Back pay awards and other retroactive pay adjustments.

    (a) Participant not employed. The following rules apply to 
participants who receive a back pay award or other retroactive pay 
adjustment for a period during which the participant was separated from 
Government service or was not appointed to a position that is covered by 
FERS, CSRS, or an equivalent system under which TSP participation is 
authorized:
    (1) If the participant is reinstated or retroactively appointed to a 
position that is covered by FERS, CSRS, or an equivalent system under 
which TSP participation is authorized, immediately upon reinstatement or 
retroactive appointment the employing

[[Page 233]]

agency must give the participant the opportunity to submit a 
contribution election to make current contributions. The contribution 
election will be effective as soon as administratively feasible, but no 
later than the first day of the first full pay period after it is 
received.
    (2) The employing agency must give a reinstated or retroactively 
appointed participant the following options for electing makeup 
contributions:
    (i) The reinstated or retroactively appointed participant may submit 
a new contribution election for purposes of makeup contributions if he 
or she would have been eligible to make such an election but for the 
erroneous separation or erroneous failure to appoint; or
    (ii) If a reinstated participant had a contribution election on file 
when he or she separated, the contribution election the participant had 
on file when he or she separated may be reinstated for purposes of 
makeup contributions.
    (3) All contributions made under this paragraph (a) and associated 
breakage will be invested according to the participant's contribution 
allocation on the posting date. Breakage will be calculated using the 
share prices for the default investment fund in effect for the 
participant in accordance with Sec.  1605.2 unless otherwise required by 
the employing agency or the court or other tribunal with jurisdiction 
over the back pay case.
    (b) Participant employed. The following rules apply to participants 
who receive a back pay award or other retroactive pay adjustment for a 
period during which the participant was employed in a position that is 
covered by FERS, CSRS, or an equivalent system under which TSP 
participation is authorized:
    (1) The participant will be entitled to make up contributions for 
the period covered by the back pay award or retroactive pay adjustment 
only if for that period--
    (i) The participant had designated a percentage of basic pay to be 
contributed to the TSP; or
    (ii) The participant had designated a dollar amount of contributions 
each pay period which equaled the applicable ceiling (FERS or CSRS) on 
contributions per pay period, and which, therefore, was limited as a 
result of the reduction in pay that is made up by the back pay award or 
other retroactive pay adjustment;
    (2) The employing agency must compute the amount of additional 
employee contributions, agency matching contributions, and agency 
automatic (1%) contributions that would have been contributed to the 
participant's account had the reduction in pay leading to the back pay 
award or other retroactive pay adjustment not occurred; and
    (3) All contributions under this paragraph (b) and associated 
breakage will be posted to the participant's account based on the 
participant's contribution allocation on the posting date. Breakage will 
be calculated in accordance with Sec.  1605.2.
    (c) Contributions to be deducted before payment or other retroactive 
pay adjustment. Employee makeup contributions required under paragraphs 
(a) and (b) of this section:
    (1) Must be computed before the back pay award or other retroactive 
pay adjustment is paid, deducted from the back pay or other retroactive 
pay adjustment, and submitted to the TSP record keeper;
    (2) Must not cause the participant to exceed the annual contribution 
limit(s) contained in sections 402(g) and 415(c) of the I.R.C. (26 
U.S.C. 402(g) and 415(c)) for the year(s) with respect to which the 
contributions are being made, taking into consideration the TSP 
contributions already made in (or with respect to) that year; and
    (3) Must be accompanied by attributable agency matching 
contributions. In any event, regardless of whether a participant elects 
to make up employee contributions, the employing agency must make all 
appropriate agency automatic (1%) contributions associated with the back 
pay award or other retroactive pay adjustment.
    (d) Prior withdrawal of TSP account. If a participant has withdrawn 
his or her TSP account other than by purchasing an annuity, and the 
separation from Government service upon which the withdrawal was based 
is reversed, resulting in reinstatement of the participant without a 
break in service, the

[[Page 234]]

participant will have the option to restore the amount withdrawn to his 
or her TSP account. The right to restore the withdrawn funds will expire 
if the participant does not notify the Board within 90 days of 
reinstatement. If the participant returns the funds that were withdrawn, 
the number of shares purchased will be determined by using the share 
price of the applicable investment fund on the posting date. Restored 
funds will not incur breakage.
    (e) Participants who are covered by paragraph (d) of this section 
and who elect to return funds that were withdrawn may also elect to 
reinstate a loan which was previously declared to be a taxable 
distribution.

[66 FR 44277, Aug. 22, 2001, as amended at 68 FR 35500, June 13, 2003; 
68 FR 74451, Dec. 23, 2003; 70 FR 32211, June 1, 2005; 76 FR 78094, Dec. 
16, 2011; 80 FR 57069, Sept. 22, 2015]



Sec.  1605.14  Misclassified retirement system coverage.

    (a) If a CSRS participant is misclassified by an employing agency as 
a FERS participant, when the misclassification is corrected:
    (1) Employee contributions that exceed the applicable contribution 
percentage for the pay period(s) involved may remain in the 
participant's account. The participant may request the return of excess 
employee contributions made on or after January 1, 2000; those 
contributed before January 1, 2000, must remain in the participant's 
account. If the participant requests a refund of employee contributions, 
the employing agency must submit a negative adjustment record to remove 
these funds under the procedure described in Sec.  1605.12.
    (2) The TSP will forfeit all agency contributions that were made to 
a CSRS participant's account. An employing agency may submit a negative 
adjustment record to request the return of an erroneous contribution 
that has been in the participant's account for less than one year.
    (b) If a FERS participant is misclassified by an employing agency as 
a CSRS participant, when the misclassification is corrected:
    (1) The participant may not elect to have the contributions made 
while classified as CSRS removed from his or her account;
    (2) The participant may, under the rules of Sec.  1605.11, elect to 
make up contributions that he or she would have been eligible to make as 
a FERS participant during the period of misclassification;
    (3) The employing agency must, under the rules of Sec.  1605.11, 
make agency automatic (1%) contributions and agency matching 
contributions on employee contributions that were made while the 
participant was misclassified;
    (4) If the retirement coverage correction is a Federal Employees' 
Retirement Coverage Act (FERCCA) correction, the employing agency must 
submit makeup employee contributions on late payment records. The 
participant is entitled to breakage on contributions from all sources. 
Breakage will be calculated pursuant to Sec.  1605.2. If the retirement 
coverage correction is not a FERCCA correction, the employing agency 
must submit makeup employee contributions on current payment records; in 
such cases, the employee is not entitled to breakage. Agency makeup 
contributions may be submitted on either current or late payment 
records; and
    (5) If employee contributions were made up before the Office of 
Personnel Management implemented its regulations on FERCCA correction, 
and the correction is considered to be a FERCCA correction, an amount to 
replicate TSP lost earnings will be calculated by the Office of 
Personnel Management pursuant to its regulations and provided to the 
employing agency for transmission to the TSP record keeper.
    (c) If a participant was misclassified as either FERS or CSRS and 
the retirement coverage is corrected to FICA only, the participant is no 
longer eligible to participate in the TSP.
    (1) Employee contributions in the account are subject to the rules 
in paragraph (a)(1) of this section.
    (2) Employer contributions in the account are subject to the rules 
in paragraph (a)(2) of this section.
    (3) The TSP will consider a participant to be separated from 
Government service for all TSP purposes and the

[[Page 235]]

employing agency must submit an employee data record to reflect 
separation from Government service. If the participant has an 
outstanding loan, it will be subject to the provisions of 5 CFR 1655.13. 
The participant may make a TSP post-employment withdrawal election 
pursuant to 5 CFR part 1650, subpart B, and the withdrawal will be 
subject to the provisions of 5 CFR 1650.60(b).
    (d) If a FERS or CSRS participant is misclassified by an employing 
agency as FICA only, when the misclassification is corrected the 
participant may, pursuant to Sec.  1605.11 of this part, elect to make 
up contributions that he or she would have been eligible to make as a 
FERS or CSRS participant during the period of misclassification. If the 
participant makes up employee contributions, the rules in paragraph 
(b)(5) of this section apply. If the participant is corrected to FERS, 
the rules in paragraphs (b)(3) and (b)(4) of this section also apply.
    (e) The provisions of paragraph (c) of this section shall apply to 
any TSP contributions relating to a period for which an employee elects 
retroactive Nonappropriated Fund retirement coverage.
    (f) If a BRS participant is misclassified by an employing agency as 
a non-BRS participant, when the misclassification is corrected:
    (1) The participant may not elect to have the contributions made 
while classified as non-BRS removed from his or her account;
    (2) The participant may, under the rules of Sec.  1605.11, elect to 
make up contributions that he or she would have been eligible to make as 
a BRS participant during the period of misclassification;
    (3) The employing agency must, under the rules of Sec.  1605.11, 
make Agency Automatic (1%) Contributions and Agency Matching 
Contributions on employee contributions that were made while the 
participant was misclassified; and
    (4) The employing agency must submit makeup employee contributions 
on current payment records and service makeup contributions may be 
submitted on either current or late payment records.
    (g) If a non-BRS participant is misclassified by an employing agency 
as a BRS participant, when the misclassification is corrected:
    (1) Employee contributions may remain in the participant's account. 
If the participant requests a refund of employee contributions, the 
employing agency must submit a negative adjustment record to remove 
these funds under the procedure described in Sec.  1605.12.
    (2) The TSP will forfeit all agency contributions that were made to 
a non-BRS participant's account. An employing service may submit a 
negative adjustment record to request the return of an erroneous 
contribution that has been in the participant's account for less than 
one year.

[66 FR 44277, Aug. 22, 2001, as amended at 68 FR 35500, June 13, 2003; 
68 FR 74451, Dec. 23, 2003; 70 FR 32212, June 1, 2005; 72 FR 53414, 
Sept. 19, 2007; 77 FR 26426, May 4, 2012; 82 FR 60104, Dec. 19, 2017]



Sec.  1605.15  Reporting and processing late contributions 
and late loan payments.

    (a) The employing agency must promptly submit late contributions to 
the TSP record keeper on behalf of the affected participant on late 
payment records as soon as the error is discovered. For each pay date 
involved, the employing agency must submit a separate record showing the 
``as of'' date for the contributions. Breakage for both employee and 
agency contributions will be calculated, posted, and charged to the 
agency or forfeited to the TSP in accordance with Sec.  1605.2.
    (b) If an employing agency deducts loan payments from a 
participant's pay, but fails to submit those payments to the TSP for the 
pay date for which they were deducted (or submits them in a manner that 
prevents them from being timely credited to the participant's account), 
the employing agency will be responsible for paying breakage using the 
procedure described in Sec.  1605.2. The loan payment record must 
contain the ``as of'' date for which the loan payment was deducted.
    (c) All contributions or loan payments on payment records contained 
in a payroll submission that was received from an employing agency more 
than

[[Page 236]]

30 days after the pay date associated with the payroll submission (as 
reported on the appropriate journal voucher), will be subject to 
breakage calculated, posted, and charged to the employing agency (or 
forfeited to the TSP) in accordance with Sec.  1605.2. The employing 
agency will be apprised of the breakage due for each record reported on 
the late submission.
    (d) If the ``as of'' date of a late Roth contribution is earlier 
than the participant's existing Roth initiation date, the TSP will 
adjust the participant's Roth initiation date.

[68 FR 35501, June 13, 2003, as amended at 77 FR 26426, May 4, 2012]



Sec.  1605.16  Claims for correction of employing agency errors; 
time limitations.

    (a) Agency's discovery of error. (1) Upon discovery of an error made 
within the past six months involving the correct or timely remittance of 
payments to the TSP (other than a retirement system misclassification 
error, as covered in paragraph (c) of this section), an employing agency 
must promptly correct the error on its own initiative. If the error was 
made more than six months before it was discovered, the agency may 
exercise sound discretion in deciding whether to correct it, but, in any 
event, the agency must act promptly in doing so.
    (2) For errors involving incorrect dates of birth caused by 
employing agency error that result in default investment in the wrong L 
Fund, the employing agency must promptly notify the TSP that the 
participant is entitled to breakage if the error is discovered within 30 
days of either the date the TSP provides the participant with a notice 
reflecting the error or the date the TSP makes available on its Web site 
a participant statement reflecting the error, whichever is earlier. If 
it is discovered after that time, the employing agency may use its sound 
discretion in deciding whether to pay breakage, but, in any event, must 
act promptly in doing so.
    (b) Participant's discovery of error. (1) If an agency fails to 
discover an error of which a participant has knowledge involving the 
correct or timely remittance of a payment to the TSP (other than a 
retirement system misclassification error as covered by paragraph (c) of 
this section), the participant may file a claim with his or her 
employing agency to have the error corrected without a time limit. The 
agency must promptly correct any such error for which the participant 
files a claim within six months of its occurrence; if the participant 
files a claim to correct any such error after that time, the agency may 
do so at its sound discretion.
    (2) For errors involving incorrect dates of birth that result in 
default investment in the wrong L Fund of which a participant or 
beneficiary has knowledge, he or she may file a claim for breakage with 
the employing agency no later than 30 days after either the date the TSP 
provides the participant with a notice reflecting the error or the date 
the TSP makes available on its Web site a participant statement 
reflecting the error, whichever is earlier. The employing agency must 
promptly notify the TSP that the participant is entitled to breakage.
    (3) If a participant or beneficiary fails to file a claim for 
breakage for errors involving incorrect dates of birth in a timely 
manner, the employing agency may nevertheless, in its sound discretion, 
pay breakage on any such error that is brought to its attention.
    (c) Retirement system misclassification error. Errors arising from 
retirement system misclassification must be corrected no matter when 
they are discovered, whether by an agency or a participant.
    (d) Agency procedures. Each employing agency must establish 
procedures for participants to submit claims for correction under this 
subpart. Each employing agency's procedures must include the following:
    (1) The employing agency must provide the participant with a 
decision on any claim within 30 days of its receipt, unless the 
employing agency provides the participant with good cause for requiring 
a longer period to decide the claim. A decision to deny a claim in whole 
or in part must be in writing and must include the reasons for the 
denial, citations to any applicable statutes, regulations, or 
procedures, a description of any additional material

[[Page 237]]

that would enable the participant to perfect the claim, and a statement 
of the steps necessary to appeal the denial;
    (2) The employing agency must permit a participant at least 30 days 
to appeal the employing agency's denial of all or any part of a claim 
for correction under this subpart. The appeal must be in writing and 
addressed to the agency official designated in the initial decision or 
in procedures promulgated by the agency. The participant may include 
with his or her appeal any documentation or comments that the 
participant deems relevant to the claim;
    (3) The employing agency must issue a written decision on a timely 
appeal within 30 days of receipt of the appeal, unless the employing 
agency provides the participant with good cause for requiring a longer 
period to decide the appeal. The employing agency decision must include 
the reasons for the decision, as well as citations to any applicable 
statutes, regulations, or procedures; and
    (4) If the agency decision on the appeal is not issued in a timely 
manner, or if the appeal is denied in whole or in part, the participant 
will be deemed to have exhausted his or her administrative remedies and 
will be eligible to file suit against the employing agency under 5 
U.S.C. 8477. There is no administrative appeal to the Board of a final 
agency decision.

[66 FR 44277, Aug. 22, 2001, as amended at 70 FR 32212, June 1, 2005; 80 
FR 57070, Sept. 22, 2015]



Sec.  1605.17  Redesignation and recharacterization.

    (a) Applicability. This section applies to the redesignation of 
contributions which, due to employing agency error, were contributed to 
the participant's traditional balance when they should have been 
contributed to the participant's Roth balance or were contributed to the 
participant's Roth balance when they should have been contributed to the 
participant's traditional balance. This section also applies to the 
recharacterization of contributions which, due to employing agency 
error, were contributed as tax-deferred contributions when they should 
have been contributed as tax-exempt contributions (or vice versa). It is 
the responsibility of the employing agency to determine whether it has 
made an error that entitles a participant to error correction under this 
section.
    (b) Method of correction. The employing agency must promptly submit 
a redesignation record or a recharacterization record in accordance with 
this part and the procedures provided to employing agencies by the Board 
in bulletins or other guidance.
    (c) Processing redesignations and recharacterizations. (1) Upon 
receipt of a properly submitted redesignation record, the TSP shall 
treat the erroneously submitted contribution (and associated positive 
earnings) as if the contribution had been made to the correct balance on 
the date that it was contributed to the wrong balance. The TSP will 
adjust the participant's traditional balance and the participant's Roth 
balance accordingly. The TSP will also adjust the participant's Roth 
initiation date as necessary.
    (2) Upon receipt of a properly submitted recharacterization record 
or recharacterization request, the TSP will change the tax 
characterization of the erroneously characterized contribution.
    (3) Agency Automatic (1%) Contributions and matching contributions 
cannot be redesignated as Roth contributions or recharacterized as tax-
exempt contributions.
    (4) There is no breakage associated with redesignation or 
recharacterization actions.

[77 FR 26426, May 4, 2012]



               Subpart C_Board or TSP Record Keeper Errors



Sec.  1605.21  Plan-paid breakage and other corrections.

    (a) Plan-paid breakage. (1) Subject to paragraph (a)(3) of this 
section, if, because of an error committed by the Board or the TSP 
record keeper, a participant's account is not credited or charged with 
the investment gains or losses the account have received had the error 
not occurred, the account will be credited accordingly.
    (2) Errors that warrant the crediting of breakage under paragraph 
(a)(1) of

[[Page 238]]

this section include, but are not limited to:
    (i) Delay in crediting contributions or other money to a 
participant's account;
    (ii) Improper issuance of a loan or withdrawal payment to a 
participant or beneficiary which requires the money to be restored to 
the participant's account; and
    (iii) Investment of all or part of a participant's account in the 
wrong investment fund(s).
    (3) A participant will not be entitled to breakage under paragraph 
(a)(1) of this section if the participant had the use of the money on 
which the investment gains would have accrued.
    (4) If the participant continued to have a TSP account, or would 
have continued to have a TSP account but for the Board or TSP record 
keeper's error, the TSP will compute gains or losses under paragraph 
(a)(1) of this section for the relevant period based upon the investment 
funds in which the affected money would have been invested had the error 
not occurred. If the participant did not have, and should not have had, 
a TSP account during this period, then the TSP will use the G Fund rate 
of return for the relevant period and return the money to the 
participant.
    (b) Other corrections. The Executive Director may, in his discretion 
and consistent with the requirements of applicable law, correct any 
other errors not specifically addressed in this section, including 
payment of breakage, if the Executive Director determines that the 
correction would serve the interests of justice and fairness and equity 
among all participants of the TSP.

[70 FR 32212, June 1, 2005]



Sec.  1605.22  Claims for correction of Board or TSP record keeper errors; 
time limitations.

    (a) Filing claims. Claims for correction of Board or TSP record 
keeper errors under this subpart may be submitted initially either to 
the TSP record keeper or the Board. The claim must be in writing and may 
be from the affected participant or beneficiary.
    (b) Board's or TSP record keeper's discovery of error. (1) Upon 
discovery of an error made within the past six months involving a 
receipt or a disbursement, the Board or TSP record keeper must promptly 
correct the error on its own initiative. If the error was made more than 
six months before its discovery, the Board or the TSP record keeper may 
exercise sound discretion in deciding whether to correct the error, but, 
in any event, must act promptly in doing so.
    (2) For errors involving an investment in the wrong fund caused by 
Board or TSP record keeper error, the Board or the TSP record keeper 
must promptly pay breakage if it is discovered within 30 days of the 
issuance of the most recent TSP participant (or loan) statement, 
transaction confirmation, or other notice that reflected the error, 
whichever is earlier. If it is discovered after that time, the Board or 
TSP record keeper may use its sound discretion in deciding whether to 
pay breakage, but, in any event, must act promptly in doing so.
    (c) Participant's or beneficiary's discovery of error. (1) If the 
Board or TSP record keeper fails to discover an error of which a 
participant or beneficiary has knowledge involving a receipt or a 
disbursement, the participant or beneficiary may file a claim for 
correction of the error with the Board or the TSP record keeper without 
time limit. The Board or the TSP record keeper must promptly correct any 
such error for which the participant or beneficiary filed a claim within 
six months of its occurrence; the correction of any such error for which 
the participant or beneficiary filed a claim after that time is in the 
sound discretion of the Board or TSP record keeper.
    (2) For errors involving an investment in the wrong fund of which a 
participant or beneficiary has knowledge, he or she may file a claim for 
breakage with the Board or TSP record keeper no later than 30 days after 
the TSP provides the participant with a transaction confirmation or 
other notice reflecting the error, or makes available on its Web site a 
participant statement reflecting the error, whichever is earlier. The 
Board or TSP record keeper must promptly pay breakage for such errors.

[[Page 239]]

    (3) If a participant or beneficiary fails to file a claim for 
breakage concerning an error involving an investment in the wrong fund 
in a timely manner, the Board or TSP record keeper may nevertheless, in 
its sound discretion, pay breakage for any such error that is brought to 
its attention.
    (d) Processing claims. (1) If the initial claim is submitted to the 
TSP record keeper, the TSP record keeper may either respond directly to 
the claimant, or may forward the claim to the Board for response. If the 
TSP record keeper responds to a claim, and all or any part of the claim 
is denied, the claimant may request review by the Board within 90 days 
of the date of the record keeper's response.
    (2) If the Board denies all or any part of a claim (whether upon 
review of a TSP record keeper denial or upon an initial review by the 
Board), the claimant will be deemed to have exhausted his or her 
administrative remedy and may file suit under 5 U.S.C. 8477. If the 
claimant does not submit a request to the Board for review of a claim 
denial by the TSP record keeper within the 90 days permitted under 
paragraph (d)(1) of this section, the claimant will be deemed to have 
accepted the TSP record keeper's decision.

[66 FR 44277, Aug. 22, 2001, as amended at 70 FR 32212, June 1, 2005; 80 
FR 57070, Sept. 22, 2015]



                   Subpart D_Miscellaneous Provisions



Sec.  1605.31  Contributions missed as a result of military service.

    (a) Applicability. This section applies to employees who meet the 
conditions specified at 5 CFR 1620.40 and who are eligible to make up 
employee contributions or to receive employing agency contributions 
missed as a result of military service.
    (b) Missed employee contributions. An employee who separates or 
enters nonpay status to perform military service may be eligible to make 
up TSP contributions when he or she is reemployed or restored to pay 
status in the civilian service. Eligibility for making up missed 
employee contributions will be determined in accordance with the rules 
specified at 5 CFR part 1620, subpart E. Missed employee contributions 
must be made up in accordance with the rules set out in Sec.  1605.11(c) 
and 5 CFR 1620.42.
    (c) Missed agency contributions. This paragraph (c) applies only to 
an employee who would have been eligible to receive agency contributions 
had he or she remained in civilian service or pay status. A FERS 
employee who separates or enters nonpay status to perform military 
service is eligible to receive agency makeup contributions when he or 
she is reemployed or restored to pay status in the civilian service, as 
follows:
    (1) The employee is entitled to receive the Agency Automatic (1%) 
Contributions that he or she would have received had he or she remained 
in civilian service or pay status. Within 60 days of the employee's 
reemployment or restoration to pay status, the employing agency must 
calculate the Agency Automatic (1%) makeup contributions and report 
those contributions to the record keeper, subject to any reduction in 
Automatic (1%) Contributions required by paragraph (c)(5) of this 
section.
    (2) An employee who contributed to a uniformed services TSP account 
during the period of military service is also immediately entitled to 
receive agency matching makeup contributions to his or her civilian 
account for the employee contributions to the uniformed services account 
that were deducted from his or her basic pay, subject to any reduction 
in matching contributions required by paragraph (c)(4) of this section. 
However, an employee is not entitled to receive agency matching makeup 
contributions on contributions that were deducted from his or her 
incentive pay or special pay, including bonus pay, while performing 
military service.
    (3) An employee who makes up missed contributions is entitled to 
receive attributable agency matching makeup contributions (unless the 
employee has already received the maximum amount of matching 
contributions, as described in paragraphs (c)(2) and (c)(4) of this 
section).
    (4) If the employee received uniformed services matching 
contributions, the agency matching makeup

[[Page 240]]

contributions will be reduced by the amount of the uniformed services 
matching contributions.
    (5) If the employee received uniformed services Automatic (1%) 
Contributions, the Agency Automatic (1%) Contributions will be reduced 
by the amount of the uniformed services Automatic (1%) Contributions.
    (d) Breakage. The employee is entitled to breakage on agency 
contributions made under paragraph (c) of this section. Breakage will be 
calculated based on the contribution allocation(s) on file for the 
participant during the period of military service.

[67 FR 49525, July 30, 2002, as amended at 70 FR 32212, June 1, 2005; 80 
FR 57070, Sept. 22, 2015; 82 FR 60105, Dec. 19, 2017]

                          PART 1606 [RESERVED]



PART 1620_EXPANDED AND CONTINUING ELIGIBILITY--Table of Contents



                            Subpart A_General

Sec.
1620.1 Application.
1620.2 Definitions.
1620.3 Contributions.
1620.4 Notices.

 Subpart B_Cooperative Extension Service, Union, and Intergovernmental 
                         Personnel Act Employees

1620.10 Definition.
1620.11 Scope.
1620.12 Employing authority contributions.
1620.13 Retroactive contributions.
1620.14 Payment to the record keeper.

                      Subpart C_Justices and Judges

1620.20 Scope.
1620.21 Contributions.
1620.22 Withdrawals.
1620.23 Spousal rights.

                Subpart D_Nonappropriated Fund Employees

1620.30 Scope.
1620.31 Definition.
1620.32 Employees who move to a NAF instrumentality on or after August 
          10, 1996.
1620.33 [Reserved]
1620.34 Employees who move from a NAF instrumentality to a Federal 
          Government agency.
1620.35 Loan payments.
1620.36 Transmission of information.

  Subpart E_Uniformed Services Employment and Reemployment Rights Act 
                    (USERRA)_Covered Military Service

1620.40 Scope.
1620.41 Definitions.
1620.42 Processing TSP contribution elections.
1620.43 Agency payments to record keeper; agency ultimately responsible.
1620.44 Restoring forfeited agency automatic (1%) contributions.
1620.45 Suspending TSP loans, restoring post-employment withdrawals, and 
          reversing taxable distributions.
1620.46 Agency responsibilities.

    Authority: 5 U.S.C. 8474(b)(5) and (c)(1).
    Subpart C also issued under 5 U.S.C. 8440a(b)(7), 8440b(b)(8), and 
8440c(b)(8).
    Subpart D also issued under sec. 1043(b) of Pub. L. 104-106, 110 
Stat. 186, and sec. 7202(m)(2) of Pub. L. 101-508, 104 Stat. 1388.
    Subpart E also issued under 5 U.S.C. 8432b(1) and 8440e.

    Source: 64 FR 31057, June 9, 1999, unless otherwise noted.



                            Subpart A_General



Sec.  1620.1  Application.

    The Federal Employees' Retirement System Act of 1986 (codified as 
amended largely at 5 U.S.C. 8351 and 8401 through 8479) originally 
limited TSP eligibility to specifically named groups of employees. On 
various occasions, Congress has since expanded TSP eligibility to other 
groups. Depending on the circumstances, that subsequent legislation 
requires retroactive contributions or provides other special features. 
Where necessary, this part describes those special features. The 
employees and employing agencies covered by this part are also governed 
by the other regulations in 5 CFR chapter VI to the extent that they do 
not conflict with the regulations of this part.

[64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005]



Sec.  1620.2  Definitions.

    The definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.

[70 FR 32213, June 1, 2005]

[[Page 241]]



Sec.  1620.3  Contributions.

    The employing agency is responsible for transmitting to the Board's 
record keeper, in accordance with Board procedures, any employee and 
employer contributions that are required by this part.



Sec.  1620.4  Notices.

    An employing agency must notify affected employees of the 
application of this part as soon as practicable.



 Subpart B_Cooperative Extension Service, Union, and Intergovernmental 
                         Personnel Act Employees



Sec.  1620.10  Definition.

    As used in this subpart, employing authority means the entity that 
employs an individual described in Sec.  1620.11 and which has the 
authority to make personnel compensation decisions for such employee.



Sec.  1620.11  Scope.

    This subpart applies to any individual participating in CSRS or FERS 
who:
    (a) Has been appointed or otherwise assigned to one of the 
cooperative extension services, as defined in 7 U.S.C. 3103(5);
    (b) Has entered on approved leave without pay to serve as a full-
time officer or employee of an organization composed primarily of 
employees as defined by 5 U.S.C. 8331(1) and 8401(11); or
    (c) Has been assigned, on an approved leave-without-pay basis, from 
a Federal agency to a state or local government under 5 U.S.C. chapter 
33, subchapter VI.



Sec.  1620.12  Employing authority contributions.

    The employing authority, at its sole discretion, may choose to make 
employer contributions under 5 U.S.C. 8432(c) for employees who are 
covered under FERS. Such contributions may be made for any period of 
eligible service after January 1, 1984, provided that the employing 
agency must treat all its employees who are eligible to receive employer 
contributions in the same manner. The employing authority can commence 
or terminate employer contributions at any time after providing all 
affected employees with notice of a decision to commence or terminate 
such contributions at least 45 days before the beginning of the 
applicable election period. The employing authority may not contribute 
to the TSP on behalf of CSRS employees.

[64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005]



Sec.  1620.13  Retroactive contributions.

    (a) An employing authority can make retroactive employer 
contributions on behalf of FERS employees described in this subpart, but 
cannot duplicate employer contributions already made to the TSP.
    (b) An employing authority making retroactive employing agency 
contributions on behalf of a FERS employee described in Sec.  1620.12 
must continue those contributions (but only to the extent they relate to 
service with the employing authority) if the employee returns to his or 
her agency of record or is transferred to another Federal agency without 
a break in service.
    (c) CSRS and FERS employees covered by this subpart can make 
retroactive employee contributions relating to periods of service 
described in Sec.  1620.12, unless they already have been given the 
opportunity to make contributions for these periods of service.



Sec.  1620.14  Payment to the record keeper.

    (a) The employing authority of a cooperative extension service 
employee (described at Sec.  1620.11(a)) is responsible for transmitting 
employer and employee contributions to the TSP record keeper.
    (b) The employing authority of a union employee or an 
Intergovernmental Personnel Act employee (described at Sec.  1620.11(b) 
and (c), respectively) is responsible for transmitting employer and 
employee contributions to the employee's Federal agency of record. 
Employee contributions will be deducted from the employee's actual pay. 
The employee's agency of record is responsible for transmitting the 
employer and employee's contributions to the TSP record keeper in 
accordance

[[Page 242]]

with Board procedures. The employee's election form (TSP-1) will be 
filed in the employee's official personnel folder or other similar file 
maintained by the employing authority.



                      Subpart C_Justices and Judges



Sec.  1620.20  Scope.

    (a) This subpart applies to:
    (1) A justice or judge of the United States as defined in 28 U.S.C. 
451;
    (2) A bankruptcy judge appointed under 28 U.S.C. 152 or a United 
States magistrate judge appointed under 28 U.S.C. 631 who has chosen to 
receive a judges' annuity described at 28 U.S.C. 377 or section 2(c) of 
the Retirement and Survivors' Annuities for Bankruptcy Judges and 
Magistrates Act of 1988, Public Law 100-659, 102 Stat. 3910-3921;
    (3) A judge of the United States Court of Federal Claims appointed 
under 28 U.S.C. 171 whose retirement is covered by 28 U.S.C. 178; and
    (4) A judge of the Court of Veterans Appeals appointed under 38 
U.S.C. 7253.
    (b) This subpart does not apply to a bankruptcy judge or a United 
States magistrate judge who has not chosen a judges' annuity, or to a 
judge of the United States Court of Federal Claims who is not covered by 
28 U.S.C. 178. Those individuals may participate in the TSP only if they 
are otherwise covered by CSRS or FERS.

[64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005]



Sec.  1620.21  Contributions.

    (a) An individual covered under this subpart can make contributions 
to the TSP from basic pay in the amount described at 5 CFR 
1600.22(a)(1). Unless stated otherwise in this subpart, he or she is 
covered by the same rules that apply to a CSRS participant in the TSP.
    (b) The following amounts are not basic pay and no TSP contributions 
can be made from them:
    (1) An annuity or salary received by a justice or judge of the 
United States (as defined in 28 U.S.C. 451) who is retired under 28 
U.S.C. 371(a) or (b), or 372(a);
    (2) Amounts received by a bankruptcy judge or a United States 
magistrate judge under a judges' annuity described at 28 U.S.C. 377;
    (3) An annuity or salary received by a judge of the United States 
Court of Federal Claims under 28 U.S.C. 178; and
    (4) Retired pay received by a judge of the United States Court of 
Veterans Appeals under 38 U.S.C. 7296.

[64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005]



Sec.  1620.22  Withdrawals.

    (a) Post-employment withdrawal. An individual covered under this 
subpart can make a post-employment withdrawal election described at 5 
U.S.C. 8433(b):
    (1) Upon separation from Government employment.
    (2) In addition to the circumstance described in paragraph (a)(1) of 
this section, a post-employment withdrawal election can be made by:
    (i) A justice or judge of the United States (as defined in 28 U.S.C. 
451) who retires under 28 U.S.C. 317(a) or (b) or 372(a);
    (ii) A bankruptcy judge or a United States magistrate judge 
receiving a judges' annuity under 28 U.S.C. 377;
    (iii) A judge of the United States Court of Federal Claims receiving 
an annuity or salary under 28 U.S.C. 178; and
    (iv) A judge of the United States Court of Veterans Appeals 
receiving retired pay under 38 U.S.C. 7296.
    (b) In-service withdrawals. An individual covered under this subpart 
can request an in-service withdrawal described at 5 U.S.C. 8433(h) if he 
or she:
    (1) Has not separated from Government employment; and
    (2) Is not receiving retired pay as described in paragraph (a)(2) of 
this section.

[64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005]



Sec.  1620.23  Spousal rights.

    (a) The current spouse of a justice or judge of the United States 
(as defined in 28 U.S.C. 451), or of a Court of Veterans Appeals judge, 
possesses the rights described at 5 U.S.C. 8351(b)(5).

[[Page 243]]

    (b) A current or former spouse of a bankruptcy judge, a United 
States magistrate judge, or a judge of the United States Court of 
Federal Claims, possesses the rights described at 5 U.S.C. 8435 and 8467 
if the judge is covered under this subpart.

[64 FR 31057, June 9, 1999, as amended at 70 FR 32213, June 1, 2005]



                Subpart D_Nonappropriated Fund Employees



Sec.  1620.30  Scope.

    This subpart applies to any employee of a Nonappropriated Fund (NAF) 
instrumentality of the Department of Defense (DOD) or the U.S. Coast 
Guard who elects to be covered by CSRS or FERS and to any employee in a 
CSRS- or FERS-covered position who elects to be covered by a retirement 
plan established for employees of a NAF instrumentality pursuant to the 
Portability of Benefits for Nonappropriated Fund Employees Act of 1990, 
Public Law 101-508, 104 Stat. 1388, 1388-335 to 1388-341, as amended 
(codified largely at 5 U.S.C. 8347(q) and 8461(n)).



Sec.  1620.31  Definition.

    As used in this subpart, move means moving from a position covered 
by CSRS or FERS to a NAF instrumentality of the DOD or Coast Guard, or 
vice versa, without a break in service of more than one year.



Sec.  1620.32  Employees who move to a NAF instrumentality 
on or after August 10, 1996.

    Any employee who moves from a CSRS- or FERS-covered position to a 
NAF instrumentality on or after August 10, 1996, and who elects to 
continue to be covered by CSRS or FERS, will be eligible to contribute 
to the TSP as determined in accordance with 5 CFR part 1600.



Sec.  1620.33  [Reserved]



Sec.  1620.34  Employees who move from a NAF instrumentality 
to a Federal Government agency.

    (a) An employee of a NAF instrumentality who moves from a NAF 
instrumentality to a Federal Government agency and who elects to be 
covered by a NAF retirement system is not eligible to participate in the 
TSP. Any TSP contributions relating to a period for which an employee 
elects retroactive NAF retirement coverage must be removed from the TSP 
as required by the regulations at 5 CFR part 1605.
    (b) An employee of a NAF instrumentality who moves from a NAF 
instrumentality to a Federal Government agency and who elects to be 
covered by CSRS or FERS will become eligible to participate in the TSP 
as determined in accordance with 5 CFR part 1600.



Sec.  1620.35  Loan payments.

    NAF instrumentalities must deduct and transmit TSP loan payments for 
employees who elect to be covered by CSRS or FERS to the record keeper 
in accordance with 5 CFR part 1655 and Board procedures. Loan payments 
may not be deducted and transmitted for employees who elect to be 
covered by the NAF retirement system. Such employees will be considered 
to have separated from Government service and must prepay their loans or 
the TSP will declare the loan to be a taxable distribution.



Sec.  1620.36  Transmission of information.

    Any employee who moves to a NAF instrumentality must be reported by 
the losing Federal Government agency to the TSP record keeper as having 
transferred to a NAF instrumentality of the DOD or Coast Guard rather 
than as having separated from Government service. If the employee 
subsequently elects not to be covered by CSRS or FERS, the NAF 
instrumentality must submit an Employee Data Record to report the 
employee as having separated from Federal Government service as of the 
date of the move.



  Subpart E_Uniformed Services Employment and Reemployment Rights Act 
                    (USERRA)_Covered Military Service



Sec.  1620.40  Scope.

    To be covered by this subpart, an employee must have:
    (a) Separated from Federal civilian service or entered leave-
without-pay

[[Page 244]]

status in order to perform military service; and
    (b) Become eligible to seek reemployment or restoration to duty by 
virtue of a release from military service, discharge from 
hospitalization, or other similar event that occurred on or after August 
2, 1990; and
    (c) Been reemployed in, or restored to, a position covered by CSRS 
or FERS pursuant to the provisions of 38 U.S.C. chapter 43.



Sec.  1620.41  Definitions.

    As used in this subpart:
    Current contributions means contributions that must be made for the 
current pay date which is reported on the journal voucher that 
accompanies the payroll submission.
    Nonpay status means an employer-approved temporary absence from 
duty.
    Reemployed or returned to pay status means reemployed in or returned 
to a pay status, pursuant to 38 U.S.C. chapter 43, to a position that is 
subject to 5 U.S.C. 8351 or chapter 84.
    Retroactive period means the period for which an employee can make 
up missed employee contributions and receive missed agency 
contributions. It begins the day after the employee separates or enters 
nonpay status to perform military service and ends when the employee is 
reemployed or returned to pay status.
    Separate from civilian service means to cease employment with the 
Federal Government, the U.S. Postal Service, or with any other employer 
from a position that is deemed to be civilian Government employment for 
purposes of participating in the TSP, for 31 or more full calendar days.

[67 FR 49525, July 30, 2002]



Sec.  1620.42  Processing TSP contribution elections.

    (a) Current contribution election. If the employee entered nonpay 
status with a valid contribution election on file, the agency must 
immediately reinstate that election for current contributions when the 
employee returns to pay status, unless the employee files a new 
contribution election. If the employee separated to perform military 
service, he or she must make a new contribution election to begin 
current contributions.
    (b) Makeup contribution election. Upon reemployment or return to pay 
status, an employee has 60 days to elect to make up missed 
contributions. An employee's right to make retroactive TSP contributions 
will expire if an election is not made within 60 days of the 
participant's reemployment or return to pay status.
    (c) Makeup contributions. Makeup contributions will be processed as 
follows:
    (1) If the employee had a valid contribution election on file when 
he or she separated or entered nonpay status to perform military 
service, that election form will be reinstated for purposes of 
determining the makeup contributions, unless the employee submits a new 
contribution election which he or she could otherwise have made but for 
the performance of military service.
    (2) An employee who terminated contributions within two months of 
entering military service will also be eligible to make a retroactive 
contribution election to be effective on the date the contributions were 
terminated.

[70 FR 32213, June 1, 2005]



Sec.  1620.43  Agency payments to record keeper; agency ultimately responsible.

    (a) Agency making payments to record keeper. The current employing 
agency is responsible for making payments to the record keeper for all 
contributions, regardless of whether some of that expense is ultimately 
chargeable to a prior employing agency.
    (b) Agency ultimately chargeable with expense. The agency that 
reemployed the participant is ordinarily the agency ultimately 
chargeable with the expense of agency contributions and the breakage 
attributable to them. However, if an employee changed agencies during 
the period between the date of reemployment and October 13, 1994, the 
employing agency as of October 13, 1994, is the agency ultimately 
chargeable with the expense.
    (c) Reimbursement by agency ultimately chargeable with expense. If 
the agency that made the payments to the record keeper for agency 
contributions is not

[[Page 245]]

the agency ultimately chargeable for that expense, the agency that made 
the payments to the record keeper may, but is not required to, obtain 
reimbursement from the agency ultimately chargeable with the expense.

[70 FR 32213, June 1, 2005]



Sec.  1620.44  Restoring forfeited agency automatic (1%) contributions.

    If an employee's agency automatic (1%) contributions were forfeited 
because the employee was not vested when he or she separated to perform 
military service, the employee must notify the employing agency that a 
forfeiture occurred. The employing agency will follow the procedure 
described in Sec.  1620.46(e) to have those funds restored.

[64 FR 31057, June 9, 1999, as amended at 67 FR 49526, July 30, 2002]



Sec.  1620.45  Suspending TSP loans, restoring post-employment withdrawals, 
and reversing taxable distributions.

    (a) Suspending TSP loans during nonpay status. If the TSP is 
notified that an employee entered into a nonpay status to perform 
military service, any outstanding TSP loan from a civilian TSP account 
will be suspended, that is, it will not be declared a taxable 
distribution while the employee is performing military service.
    (1) Interest will accrue on the loan balance during the period of 
suspension. When the employee returns to civilian pay status, the 
employing agency will resume deducting loan payments from the 
participant's basic pay and the TSP will reamortize the loan (which will 
include interest accrued during the period of military service). The 
maximum loan repayment term will be extended by the employee's period of 
military service. Consequently, when the employee returns to pay status, 
the TSP record keeper must receive documentation to show the beginning 
and ending dates of military service.
    (2) The TSP may close the loan account and declare it to be a 
taxable distribution if the TSP does not receive documentation that the 
employee entered into nonpay status. However, the taxable distribution 
can be reversed in accordance with paragraph (c) of this section.
    (b) Restoring post-employment withdrawals. An employee who separates 
from civilian service to perform military service and who receives an 
automatic cashout of his or her account may return to the TSP an amount 
equal to the amount of the payment. The employee must notify the TSP 
record keeper of his or her intent to return the withdrawn funds within 
90 days of the date the employee returns to civilian service or pay 
status; if the employee is eligible to return a withdrawal, the TSP 
record keeper will then inform the employee of the actions that must be 
taken to return the funds.
    (c) Reversing taxable distributions. An employee may request that a 
taxable loan distribution be reversed if the taxable distribution 
resulted from the employee's separation or placement in nonpay status to 
perform military service. The TSP will reverse the taxable distribution 
under the process described as follows:
    (1) An employee who received a post-employment withdrawal when he or 
she separated to perform military service can have a taxable 
distribution reversed only if the withdrawn amount is returned as 
described in paragraph (b) of this section;
    (2) A taxable loan distribution can be reversed either by 
reinstating the loan or by repaying it in full. The TSP loan can be 
reinstated only if the employee agrees to repay the loan within the 
maximum loan repayment term plus the length of military service, and if, 
after reinstatement of the loan, the employee will have no more than two 
outstanding loans, only one of which is a residential loan; and
    (3) The employee must notify the TSP record keeper of his or her 
intent to reverse a taxable loan distribution within 90 days of the date 
the employee returns to civilian service or pay status; if the employee 
is eligible to reverse a taxable loan distribution, the TSP record 
keeper will then inform the employee of the actions that must be taken 
to reverse the distribution.

[[Page 246]]

    (d) Breakage. Employees will not receive breakage on amounts 
returned to their accounts under this section.

[67 FR 49526, July 30, 2002, as amended at 70 FR 32213, June 1, 2005]



Sec.  1620.46  Agency responsibilities.

    (a) General. Each employing agency must establish procedures for 
implementing these regulations. These procedures must at a minimum 
require agency personnel to identify eligible employees and notify them 
of their options under these regulations and the time period within 
which these options must be exercised.
    (b) Agency records; procedure for reimbursement. The agency making 
payments to the record keeper for all contributions and attributable 
breakage will obtain from prior employing agencies whatever information 
is necessary to make accurate payments. If a prior employing agency is 
ultimately chargeable under Sec.  1620.43(b) for all or part of this 
expense, the agency making the payments to the record keeper will 
determine the procedure to follow in order to collect amounts owed to it 
by the agency ultimately chargeable with the expense.
    (c) Payment schedule; matching contributions report. Agencies will, 
with the employee's consent, prepare a payment schedule for making 
retroactive employee contributions which will be consistent with the 
procedures established at 5 CFR part 1605 for the correction of 
employing agency errors.
    (d) Agency automatic (1%) contributions. Employing agencies must 
calculate the agency automatic (1%) contributions for all reemployed (or 
restored) FERS employees and report those contributions to the record 
keeper within 60 days of reemployment.
    (e) Forfeiture restoration. When notified by an employee that a 
forfeiture of the agency automatic (1%) contributions occurred after the 
employee separated to perform military service, the employing agency 
must complete and file the appropriate paper TSP form with the TSP 
record keeper in accordance with the form's instructions to have those 
funds restored.
    (f) Thrift Savings Plan Service Computation Date. The agencies must 
include the period of military service in the Thrift Savings Plan 
Service Computation Date (TSP-SCD) of all reemployed FERS employees. If 
the period of military service has not been credited, the agencies must 
submit an employee data record to the TSP record keeper containing the 
correct TSP Service Computation Date.

[64 FR 31057, June 9, 1999, as amended at 70 FR 32214, June 1, 2005]



PART 1630_PRIVACY ACT REGULATIONS--Table of Contents



Sec.
1630.1 Purpose and scope.
1630.2 Definitions.
1630.3 Publication of systems of records maintained.
1630.4 Request for notification and access.
1630.5 Granting access to a designated individual.
1630.6 Action on request.
1630.7 Identification requirements.
1630.8 Access of others to records about an individual.
1630.9 Access to the history (accounting) of disclosures from records.
1630.10 Denials of access.
1630.11 Requirements for requests to amend records.
1630.12 Action on request to amend a record.
1630.13 Procedures for review of determination to deny access to or 
          amendment of records.
1630.14 Appeals process.
1630.15 Exemptions.
1630.16 Fees.
1630.17 Federal agency requests.
1630.18 Penalties.

    Authority: 5 U.S.C. 552a.

    Source: 55 FR 18852, May 7, 1990, unless otherwise noted.



Sec.  1630.1  Purpose and scope.

    These regulations implement the Privacy Act of 1974, 5 U.S.C. 552a. 
The regulations apply to all records maintained by the Federal 
Retirement Thrift Investment Board that are contained in a system of 
records and that contain information about an individual. The 
regulations establish procedures that (a) authorize an individual's 
access to records maintained about him or her; (b) limit the access of 
other persons to those records; and (c) permit an individual to request 
the amendment or correction of records about him or her.

[[Page 247]]



Sec.  1630.2  Definitions.

    For the purposes of this part--
    (a) Account number means the number assigned by the Agency to each 
participant's TSP account which serves as the primary identification 
mechanism for a participant's account. The participant's Social Security 
number will remain the identifier for the submission of data and funds 
from agency and uniformed services payroll offices, for the submission 
of information to the Internal Revenue Service about distributions, and 
for some other administrative purposes.
    (b) Agency means agency as defined in 5 U.S.C. 552(e);
    (c) Board means the Federal Retirement Thrift Investment Board;
    (d) Case reference number means the number assigned by the Agency to 
the recipient of a court order payment or a death benefit payment.
    (e) Individual means a citizen of the United States or an alien 
lawfully admitted for permanent residence;
    (f) Maintain means to collect, use, or distribute;
    (g) Privacy Act Officer means the Board's General Counsel or his or 
her designee;
    (h) Record means any item, collection, or grouping of information 
about an individual that is maintained by the Board or the record 
keeper, including but not limited to education, financial transactions, 
medical history, and criminal or employment history and that contains 
the individual's name, identifying number, symbol, or other identifying 
particular assigned to the individual, such as a finger or voice print 
or a photograph;
    (i) Record keeper means the entity that is engaged by the Board to 
perform record keeping services for the TSP;
    (j) Routine use means, with respect to the disclosure of a record, 
the use of that record for a purpose which is compatible with the 
purpose for which it was collected;
    (k) System manager means the official of the Board who is 
responsible for the maintenance, collection, use, distribution, or 
disposal of information contained in a system of records;
    (l) System of records means a group of any records under the control 
of the Board from which information is retrieved by the name of the 
individual or other identifying particular assigned to the individual;
    (m) Statistical record means a record in a system of records 
maintained for statistical research or reporting purposes only and not 
used in whole or in part in making any determination about an 
identifiable individual, except as provided by 13 U.S.C. 8;
    (n) Subject individual means the individual by whose name or other 
identifying particular a record is maintained or retrieved;
    (o) TSP means the Thrift Savings Plan which is administered by the 
Board pursuant to 5 U.S.C. 8351 and chapter 84 (subchapters III and 
VII);
    (p) TSP participant means any individual for whom a TSP account has 
been established. This includes former participants, i.e., participants 
whose accounts have been closed;
    (q) TSP records means those records maintained by the record keeper;
    (r) VRS (Voice Response System) means the fully automated telephone 
information system for TSP account records;
    (s) Work days as used in calculating the date when a response is 
due, includes those days when the Board is open for the conduct of 
Government business and does not include Saturdays, Sundays and Federal 
holidays.

[55 FR 18852, May 7, 1990, as amended at 64 FR 67693, 67695, Dec. 3, 
1999; 72 FR 51353, Sept. 7, 2007; 79 FR 68094, Nov. 14, 2014]



Sec.  1630.3  Publication of systems of records maintained.

    (a) Prior to the establishment or revision of a system of records, 
the Board will publish in the Federal Register notice of any new or 
intended use of the information in a system or proposed system and 
provide interested persons with a period within which to comment on the 
new or revised system. Technical or typographical corrections are not 
considered to be revisions of a system.
    (b) When a system of records is established or revised, the Board 
will publish in the Federal Register a notice about the system. The 
notice shall include:
    (1) The system name,

[[Page 248]]

    (2) The system location,
    (3) The categories of individuals covered by the system,
    (4) The categories of records in the system,
    (5) The Board's authority to maintain the system,
    (6) The routine uses of the system,
    (7) The Board's policies and practices for maintenance of the 
system,
    (8) The system manager,
    (9) The procedures for notification, access to and correction of 
records in the system, and
    (10) The sources of information for the system.



Sec.  1630.4  Request for notification and access.

    (a) Within 20 work days of receiving the request for review, the 
Executive Director will make a final determination on appeal. A 
participant or a spouse, former spouse, or beneficiary of a participant 
must make his or her inquiry in accordance with the chart set forth in 
this paragraph. The mailing address of the Thrift Savings Plan is 
provided at http://www.tsp.gov. Telephone inquiries are subject to the 
verification procedures set forth in Sec.  1630.7. A written inquiry 
from a participant must include the participant's name and the 
participant's account number or Social Security number. A written 
inquiry from a spouse or former spouse or a beneficiary of the 
participant must include the inquiring party's name and Social Security 
number or, if available, the case reference number as well as the name 
and Social Security number or account number of the participant. Other 
third party inquiries (e.g., from other Federal agencies authorized to 
obtain information about the participant's account) must include, at a 
minimum, the participant's name and Social Security number.

To obtain information about or gain access to TSP records about you

 
------------------------------------------------------------------------
                                                         If you are a
                                                        participant who
                                     If you are a     has separated from
          If you want:            participant who is  Federal employment
                                   a current Federal     or a spouse,
                                       employee:       former spouse, or
                                                         beneficiary:
------------------------------------------------------------------------
To make inquiry as to whether     Call or write to    Call or write to
 you are a subject of this         your employing      TSP record
 system of records..               agency in           keeper.
                                   accordance with
                                   agency procedures
                                   for personnel or
                                   payroll records.
To gain access to a record about  Call or write to    Call or write to
 you.                              your employing      TSP record
                                   agency to request   keeper.
                                   access to
                                   personnel and
                                   payroll records
                                   regarding the
                                   agency's and the
                                   participant's
                                   contributions,
                                   and adjustments
                                   to contributions.
                                   Call or write to
                                   the TSP record
                                   keeper to gain
                                   access to loan
                                   status and
                                   repayments,
                                   earnings,
                                   contributions
                                   allocation
                                   elections,
                                   interfund
                                   transfers, and
                                   withdrawal
                                   records.
To learn the history of           Write to TSP        Write to TSP
 disclosures of records about      record keeper..     record keeper.
 you to entities other than the
 participant's employing agency
 or the Board or auditors see
 Sec.   1630.4 (a)(4).
------------------------------------------------------------------------

    (2) Participants may also inquire whether this system contains 
records about them and access certain records through the account access 
section of the TSP Web site and the ThriftLine (the TSP's automated 
telephone system). The TSP Web site is located at www.tsp.gov. To use 
the TSP ThriftLine, the participant must have a touch-tone telephone and 
call the following number: (877) 968-3778. The following information is 
available on the TSP Web site and the ThriftLine: account balance; 
available loan amount; the status of a monthly withdrawal payment; the 
current status of a loan or withdrawal application; and an interfund 
transfer request. To access these features, the participant may be 
required to provide identity and account verification information such 
as

[[Page 249]]

his or her account number, PIN, or Web password.
    (3) A Privacy Act request which is incorrectly submitted to the 
Board will not be considered received until received by the record 
keeper. The Board will submit such a Privacy Act request to the record 
keeper within three workdays. A Privacy Act request which is incorrectly 
submitted to the record keeper will not be considered received until 
received by the employing agency. The record keeper will submit such a 
Privacy Act request to the employing agency within three workdays.
    (4) No disclosure history will be made when the Board contracts for 
an audit of TSP financial statements (which includes the review and 
sampling of TSP account balances).
    (5) No disclosure history will be made when the Department of Labor 
or the General Accounting Office audits TSP financial statements (which 
includes the review and sampling of TSP account balances) in accordance 
with their responsibilities under chapter 84 of title 5 of the U.S. 
Code. Rather, a requester will be advised that these agencies have 
statutory obligations to audit TSP activities and that in the course of 
such audits they randomly sample individual TSP accounts to test for 
account accuracy.
    (b) Non-TSP Board records. An individual who wishes to know if a 
specific system of records maintained by the Board contains a record 
pertaining to him or her, or who wishes access to such records, shall 
address a written request to the Privacy Act Officer, Federal Retirement 
Thrift Investment Board, 77 K Street, NE., Suite 1000, Washington, DC 
20002. The request letter should contain the complete name and 
identifying number of the pertinent system as published in the annual 
Federal Register notice describing the Board's Systems of Records; the 
full name and address of the subject individual; the subject's Social 
Security number if a Board employee; a brief description of the nature, 
time, place, and circumstances of the individual's prior association 
with the Board; and any other information the individual believes would 
help the Privacy Act Officer determine whether the information about the 
individual is included in the system of records. In instances where the 
information is insufficient to ensure disclosure to the subject 
individual to whom the record pertains, the Board reserves the right to 
ask the requester for additional identifying information. The words 
``PRIVACY ACT REQUEST'' should be printed on both the letter and the 
envelope.

[55 FR 18852, May 7, 1990, as amended at 59 FR 55331, Nov. 7, 1994; 64 
FR 67693, 67695, Dec. 3, 1999; 71 FR 50319, Aug. 25, 2006; 72 FR 51353, 
Sept. 7, 2007; 77 FR 11384, Feb. 27, 2012; 79 FR 68094, Nov. 14, 2014]



Sec.  1630.5  Granting access to a designated individual.

    (a) An individual who wishes to have a person of his or her choosing 
review a record or obtain a copy of a record from the Board or the TSP 
record keeper shall submit a signed statement authorizing the disclosure 
of his or her record before the record will be disclosed. The 
authorization shall be maintained with the record.
    (b) The Board or the TSP record keeper will honor any Privacy Act 
request (e.g., a request to have access or to amend a record) which is 
accompanied by a valid power of attorney from the subject of the record.

[55 FR 18852, May 7, 1990, as amended at 59 FR 26409, May 20, 1994; 64 
FR 67694, Dec. 3, 1999]



Sec.  1630.6  Action on request.

    (a) For TSP records, the record keeper designee, and for non-TSP 
records, the Privacy Act Officer will answer or acknowledge the inquiry 
within 10 work days of the date it is received. When the answer cannot 
be made within 10 work days, the record keeper or Privacy Act Officer 
will provide the requester with the date when a response may be expected 
and, whenever possible, the specific reasons for the delay.
    (b) At a minimum, the acknowledgement to a request for access shall 
include:
    (1) When and where the records will be available;
    (2) Name, title and telephone number of the official who will make 
the records available;
    (3) Whether access will be granted only by providing a copy of the 
record

[[Page 250]]

through the mail, or only by examination of the record in person if the 
Privacy Act Officer after consulting with the appropriate system manager 
has determined the requester's access would not be unduly impeded;
    (4) Fee, if any, charged for copies (See Sec.  1630.16); and
    (5) If necessary, documentation required to verify the identity of 
the requester (See Sec.  1630.7).

[55 FR 18852, May 7, 1990, as amended at 67694, 67695, Dec. 3, 1999]



Sec.  1630.7  Identification requirements.

    (a) In person. An individual should be prepared to identify himself 
or herself by signature, i.e., to note by signature the date of access, 
Social Security number, and to produce one photographic form of 
identification (driver's license, employee identification, annuitant 
card, passport, etc.). If an individual is unable to produce adequate 
identification, the individual must sign a statement asserting his or 
her identity and acknowledging that knowingly or willfully seeking or 
obtaining access to records about another person under false pretenses 
may result in a fine of up to $5,000 (see Sec.  1630.18). In addition, 
depending upon the sensitivity of the records, the Privacy Act Officer 
or record keeper designee after consulting with the appropriate system 
manager may require further reasonable assurances, such as statements of 
other individuals who can attest to the identity of the requester.
    (b) In writing. A participant shall provide his or her name, date of 
birth, and account number or Social Security number and shall sign the 
request. Most other individuals shall provide the participant's account 
number or Social Security number, shall provide a statement of 
relationship to the participant unless it is clearly identified in the 
nature of the correspondence, and shall sign the request. If a request 
for access is granted by mail and, in the opinion of the Privacy Act 
Officer or record keeper designee after consulting with the appropriate 
system manager, the disclosure of the records through the mail may 
result in harm or embarrassment (if a person other than the subject 
individual were to receive the records), a notarized statement of 
identity or some other similar assurance of identity will be required.
    (c) By telephone. (1) Telephone identification procedures apply only 
to requests from participants and spouses, former spouses, or 
beneficiaries of participants for information in FRTIB-1, Thrift Savings 
Plan Records, which is retrieved by their respective account numbers (or 
case reference numbers) or Social Security numbers.
    (2) A participant or a spouse, former spouse, or beneficiary of a 
participant must identify himself or herself by providing to the record 
keeper designee his or her name, account number (or case reference 
number) or Social Security number, and any other information requested. 
If the record keeper designee determines that any of the information 
provided by telephone is incorrect, the requester will be required to 
submit a request in writing.
    (3) A participant may also access the TSP Web site or call the TSP 
ThriftLine to obtain account information. These systems may require 
identity and account verification information such as the participant's 
account number and Web password or PIN for the Web site and ThriftLine 
respectively.

[55 FR 18852, May 7, 1990, as amended at 64 FR 67694, Dec. 3, 1999; 72 
FR 51354, Sept. 7, 2007]



Sec.  1630.8  Access of others to records about an individual.

    (a) The Privacy Act provides for access to records in systems of 
records in those situations enumerated in 5 U.S.C. 552a(b) and are set 
forth in paragraph (b) of this section.
    (b) No official or employee of the Board, or any contractor of the 
Board or other Federal agency operating a Board system of records under 
an interagency agreement, shall disclose any record to any person or to 
another agency without the express written consent of the subject 
individual, unless the disclosure is:
    (1) To officers or employees (including contract employees) of the 
Board or the record keeper who need the information to perform their 
official duties;

[[Page 251]]

    (2) Pursuant to the requirements of the Freedom of Information Act, 
5 U.S.C. 552;
    (3) For a routine use that has been published in a notice in the 
Federal Register (routine uses for the Board's systems of records are 
published separately in the Federal Register and are available from the 
Board's Privacy Act Officer);
    (4) To the Bureau of the Census for uses under title 13 of the 
United States Code;
    (5) To a person or agency which has given the Board or the record 
keeper advance written notice of the purpose of the request and 
certification that the record will be used only for statistical 
purposes. (In addition to deleting personal identifying information from 
records released for statistical purposes, the Privacy Act Officer or 
record keeper designee shall ensure that the identity of the individual 
cannot reasonably be deduced by combining various statistical records);
    (6) To the National Archives of the United States if a record has 
sufficient historical or other value to warrant its continued 
preservation by the United States Government, or for evaluation by the 
Archivist of the United States or the designee of the Archivist to 
determine whether the record has such value;
    (7) In response to a written request that identifies the record and 
the purpose of the request made by another agency or instrumentality of 
any Government jurisdiction within or under the control of the United 
States for civil or criminal law enforcement activity, if that activity 
is authorized by law;
    (8) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of an individual, if upon such disclosure 
a notification is transmitted to the last known address of the subject 
individual;
    (9) To either House of Congress, or to a Congressional committee or 
subcommittee if the subject matter is within its jurisdiction;
    (10) To the Comptroller General, or an authorized representative, in 
the course of the performance of the duties of the General Accounting 
Office;
    (11) Pursuant to the order of a court of competent jurisdiction; or
    (12) To a consumer reporting agency in accordance with section 
3711(f) of Title 31.

[55 FR 18852, May 7, 1990, as amended at 64 FR 67694, Dec. 3, 1999]



Sec.  1630.9  Access to the history (accounting) of disclosures from records.

    Rules governing access to the accounting of disclosures are the same 
as those for granting access to the records as set forth in Sec.  
1630.4.



Sec.  1630.10  Denials of access.

    (a) The Privacy Act Officer or the record keeper designee for 
records covered by system FRTIB-1, may deny an individual access to his 
or her record if:
    (1) In the opinion of the Privacy Act Officer or the record keeper 
designee, the individual seeking access has not provided proper 
identification to permit access; or
    (2) The Board has published rules in the Federal Register exempting 
the pertinent system of records from the access requirement.
    (b) If access is denied, the requester shall be informed of the 
reasons for denial and the procedures for obtaining a review of the 
denial.

[55 FR 18852, May 7, 1990, as amended at 64 FR 67695, Dec. 3, 1999]



Sec.  1630.11  Requirements for requests to amend records.

    (a) TSP records. (1) A spouse, former spouse or beneficiary of a TSP 
participant who wants to correct or amend his or her record must write 
to the TSP record keeper. A participant in the TSP who wants to correct 
or amend a TSP record pertaining to him or her shall submit a written 
request in accordance with the following chart:

------------------------------------------------------------------------
                    To correct or amend a TSP record
-------------------------------------------------------------------------
                                                         If you are a
                                     If you are a       participant who
    If the type of record is:     participant who is  has separated from
                                   a current Federal  Federal employment
                                  employee write to:       write to:
------------------------------------------------------------------------
Personnel or personal records     Write to your       Write to TSP
 (e.g., age, address, Social       employing agency..  record keeper.
 Security number, date of
 birth)..

[[Page 252]]

 
The agency's and the              Write to your       Write to your
 participant's contributions,      employing agency..  former employing
 and adjustments to                                    agency.
 contributions..
Earnings, investment allocation,  Write to TSP        Write to TSP
 interfund transfers, loans,       record keeper..     record keeper.
 loan repayments, and
 withdrawals.
------------------------------------------------------------------------

    (2) The address of the record keeper is listed in Sec.  1630.4(a).
    (3) Requests for amendments which are claims for money because of 
administrative error will be processed in accordance with the Board's 
Error Correction regulations found at 5 CFR part l605. Sections 
1630.12(b)-1630.14 of this part do not apply to such money claim 
amendments to TSP records as the Error Correction regulations are an 
equivalent substitute. Non-money claim TSP record appeals are covered by 
Sec. Sec.  1630.12-1630.14, or if covered by the above chart the 
employing, or former employing, agency's Privacy Act procedures.
    (4) Corrections to TSP account records which are made by the Board, 
its recordkeeper or the employing agency or the former employing agency 
on its own motion because of a detected administrative error will be 
effected without reference to Privacy Act procedures.
    (5) A participant in the TSP who is currently employed by a Federal 
agency should be aware that the employing agency provides to the Board 
personal and payroll records on the participant, such as his or her date 
of birth, Social Security number, retirement code, address, loan 
repayments, the amount of participant's contribution, amount of the 
Government's contribution, if the participant is covered by the Federal 
Employees' Retirement System Act (FERSA, 5 U.S.C. Chapter 84), and 
adjustments to contributions. Requests submitted to the Board, or its 
recordkeeper, to correct information provided by the employing Federal 
agency will be referred to the employing agency. The reason for this 
referral is that the Board receives information periodically for the TSP 
accounts; if the employing agency does not resolve the alleged error, 
the Board will continue to receive the uncorrected information 
periodically regardless of a one-time Board correction. The employing 
agency also has custody of the election form (which is maintained in the 
Official Personnel Folder). Requests for amendment or correction of 
records described in this paragraph should be made to the employing 
agency.
    (b) Non-TSP records. (1) Any other individual who wants to correct 
or amend a record pertaining to him or her shall submit a written 
request to the Board's Privacy Act Officer whose address is listed in 
Sec.  1630.4. The words ``Privacy Act--Request to Amend Record'' should 
be written on the letter and the envelope.
    (2) The request for amendment or correction of the record should, if 
possible, state the exact name of the system of records as published in 
the Federal Register; a precise description of the record proposed for 
amendment; a brief statement describing the information the requester 
believes to be inaccurate or incomplete, and why; and the amendment or 
correction desired. If the request to amend the record is the result of 
the individual's having gained access to the record in accordance with 
Sec. Sec.  1630.4, 1630.5, 1630.6 or Sec.  1630.7, copies of previous 
correspondence between the requester and the Board should be attached, 
if possible.
    (3) If the individual's identity has not been previously verified, 
the Board may require documentation of identification as described in 
Sec.  1630.7.

[55 FR 18852, May 7, 1990, as amended at 64 FR 67694, 67695, Dec. 3, 
1999]



Sec.  1630.12  Action on request to amend a record.

    (a) For TSP records, the record keeper will acknowledge a request 
for amendment of a record, which is to be decided by that office in 
accordance with the chart in Sec.  1630.11, within 10 work days. 
Requests received by the record keeper which are to be decided by the 
current or former employing agency will be sent to that agency by the 
record keeper within 3 work days of

[[Page 253]]

the date of receipt. A copy of the transmittal letter will be sent to 
the requester.
    (b) For non-TSP records, the Privacy Act Officer will acknowledge a 
request for amendment of a record within 10 work days of the date the 
Board receives it. If a decision cannot be made within this time, the 
requester will be informed by mail of the reasons for the delay and the 
date when a reply can be expected, normally within 30 work days from 
receipt of the request.
    (c) The final response will include the decision whether to grant or 
deny the request. If the request is denied, the response will include:
    (1) The reasons for the decision;
    (2) The name and address of the official to whom an appeal should be 
directed;
    (3) The name and address of the official designated to assist the 
individual in preparing the appeal;
    (4) A description of the appeal process with the Board; and
    (5) A description of any other procedures which may be required of 
the individual in order to process the appeal.

[55 FR 18852, May 7, 1990, as amended at 64 FR 67695, Dec. 3, 1999]



Sec.  1630.13  Procedures for review of determination to deny access to 
or amendment of records.

    (a) Individuals who disagree with the refusal to grant them access 
to or to amend a record about them should submit a written request for 
review to the Executive Director, Federal Retirement Thrift Investment 
Board, 77 K Street, NE., Suite 1000, Washington, DC 20002. The words 
``PRIVACY ACT--APPEAL'' should be written on the letter and the 
envelope. Individuals who need assistance preparing their appeal should 
contact the Board's Privacy Act Officer.
    (b) The appeal letter must be received by the Board within 30 
calendar days from the date the requester received the notice of denial. 
At a minimum, the appeal letter should identify:
    (1) The records involved;
    (2) The date of the initial request for access to or amendment of 
the record;
    (3) The date of the Board's denial of that request; and
    (4) The reasons supporting the request for reversal of the Board's 
decision.

Copies of previous correspondence from the Board denying the request to 
access or amend the record should also be attached, if possible.
    (c) The Board reserves the right to dispose of correspondence 
concerning the request to access or amend a record if no request for 
review of the Board's decision is received within 180 days of the 
decision date. Therefore, a request for review received after 180 days 
may, at the discretion of the Privacy Act Officer, be treated as an 
initial request to access or amend a record.

[55 FR 18852, May 7, 1990, as amended at 59 FR 55331, Nov. 7, 1994; 77 
FR 11384, Feb. 27, 2012]



Sec.  1630.14  Appeals process.

    (a) Within 20 work days of receiving the request for review, the 
Executive Director will make a final determination on appeal. If a final 
decision cannot be made in 20 work days, the Privacy Act Officer will 
inform the requester of the reasons for the delay and the date on which 
a final decision can be expected. Such extensions are unusual, and 
should not exceed an additional 30 work days.
    (b) If the original request was for access and the initial 
determination is reversed, the procedures in Sec.  1630.7 will be 
followed. If the initial determination is upheld, the requester will be 
so informed and advised of the right to judicial review pursuant to 5 
U.S.C. 552a(g).
    (c) If the initial denial of a request to amend a record is 
reversed, the Board or the record keeper will correct the record as 
requested and inform the individual of the correction. If the original 
decision is upheld, the requester will be informed and notified in 
writing of the right to judicial review pursuant to 5 U.S.C. 552a(g) and 
the right to file a concise statement of disagreement with the Executive 
Director. The statement of disagreement should include an explanation of 
why the requester believes the record is inaccurate, irrelevant, 
untimely, or incomplete. The Executive Director shall maintain the 
statement of disagreement with the disputed record, and shall include a

[[Page 254]]

copy of the statement of disagreement to any person or agency to whom 
the record has been disclosed, if the disclosure was made pursuant to 
Sec.  1630.9.

[55 FR 18852, May 7, 1990, as amended at 64 FR 67695, Dec. 3, 1999; 79 
FR 68094, Nov. 14, 2014]



Sec.  1630.15  Exemptions.

    (a) Pursuant to subsection (k) of the Privacy Act, 5 U.S.C. 552a, 
the Board may exempt certain portions of records within designated 
systems of records from the requirements of the Privacy Act, (including 
access to and review of such records pursuant to this part) if such 
portions are:
    (1) Subject to the provisions of section 552(b)(1) of the Freedom of 
Information Act, 5 U.S.C. 552;
    (2) Investigatory material compiled for law enforcement purposes, 
other than material within the scope of subsection (j)(2) of the Privacy 
Act, 5 U.S.C. 552a: Provided, however, that if any individual is denied 
any right, privilege, or benefit that he would otherwise be entitled by 
Federal law, or for which he would otherwise be eligible, as a result of 
the maintenance of such material, such material shall be provided to 
such individual, except to the extent that the disclosure of such 
material would reveal the identity of a source who furnished information 
to the Government under an express promise that the identity of the 
source would be held in confidence, or, prior to the effective date of 
the Privacy Act, 5 U.S.C. 552a, under an implied promise that the 
identity of the source would be held in confidence;
    (3) Maintained in connection with providing protective services to 
the President of the United States or other individuals pursuant to 
section 3056 of title 18 of the United States Code;
    (4) Required by statute to be maintained and used solely as 
statistical records;
    (5) Investigatory material compiled solely for the purpose of 
determining suitability, eligibility, or qualifications for Federal 
civilian employment, military service, Federal contracts, or access to 
classified information, but only to the extent that the disclosures of 
such material would reveal the identity of a source who furnished 
information to the Government under an express promise that the identity 
of the source would be held in confidence, or, prior to the effective 
date of the Privacy Act, 5 U.S.C. 552a, under an implied promise that 
the identity of the source would be held in confidence;
    (6) Test or examination material used solely to determine individual 
qualifications for appointment or promotion in the Federal service, the 
disclosure of which would compromise the objectivity or fairness of the 
testing or examination process; or
    (7) Evaluation material used to determine potential for promotion in 
the armed services, but only to the extent that the disclosure of such 
material be held in confidence, or, prior to the effective date of the 
Privacy Act, 5 U.S.C. 552a, under an implied promise that the identity 
of the source would be held in confidence.
    (b) Those designated systems of records which are exempt from the 
requirements of this part or any other requirements of the Privacy Act, 
5 U.S.C. 552a, will be indicated in the notice of designated systems of 
records published by the Board.
    (c) Nothing in this part will allow an individual access to any 
information compiled in reasonable anticipation of a civil action or 
proceeding.



Sec.  1630.16  Fees.

    (a) Individuals will not be charged for:
    (1) The search and review of the record; and
    (2) Copies of ten (10) or fewer pages of a requested record.
    (b) Records of more than 10 pages will be photocopied for 15 cents a 
page. If the record is larger than 8\1/2\ x 14 inches, the fee will be 
the cost of reproducing the record through Government or commercial 
sources.
    (c) Fees must be paid in full before requested records are 
disclosed. Payment shall be by personal check or money order payable to 
the Federal Retirement Thrift Investment Board, and mailed or delivered 
to the record keeper or to the Privacy Act Officer, depending upon the 
nature of the request, at the address listed in Sec.  1630.4.

[[Page 255]]

    (d) The Executive Director or the Privacy Act Officer may waive the 
fee if:
    (1) The cost of collecting the fee exceeds the amount to be 
collected; or
    (2) The production of the copies at no charge is in the best 
interest of the Board.
    (e) A receipt will be furnished on request.

[55 FR 18852, May 7, 1990, as amended at 64 FR 67695, Dec. 3, 1999; 79 
FR 68094, Nov. 14, 2014]



Sec.  1630.17  Federal agency requests.

    Employing agencies needing automated data processing services from 
the Board in order to reconcile agency TSP records for TSP purposes may 
be charged rates based upon the factors of:
    (a) Fair market value;
    (b) Cost to the TSP; and
    (c) Interests of the participants and beneficiaries.



Sec.  1630.18  Penalties.

    (a) Title 18, U.S.C. 1001, Crimes and Criminal Procedures, makes it 
a criminal offense, subject to a maximum fine of $10,000 or imprisonment 
for not more than five years, or both, to knowingly and willfully make 
or cause to be made any false or fraudulent statements or representation 
in any matter within the jurisdiction of any agency of the United 
States. Section (i)(3) of the Privacy Act, 5 U.S.C. 552a(i)(3), makes it 
a misdemeanor, subject to a maximum fine of $5,000 to knowingly and 
willfully request or obtain any record concerning an individual under 
false pretenses. Sections (i) (1) and (2) of 5 U.S.C. 552a provide 
penalties for violations by agency employees of the Privacy Act or 
regulations established thereunder.
    (b) [Reserved]



PART 1631_AVAILABILITY OF RECORDS--Table of Contents



   Subpart A_Production or Disclosure of Records Under the Freedom of 
                      Information Act, 5 U.S.C. 552

Sec.
1631.1 Definitions.
1631.2 Purpose and scope.
1631.3 Organization and functions.
1631.4 Proactive disclosure of Board records.
1631.5 Records of other agencies.
1631.6 How to request records--form and content.
1631.7 Initial determination.
1631.8 Prompt response.
1631.9 Responses--form and content.
1631.10 Appeals to the General Counsel from initial denials.
1631.11 Fees to be charged--categories of requesters.
1631.12 Waiver or reduction of fees.
1631.13 Prepayment of fees over $250.
1631.14 Fee schedule.
1631.15 Information to be disclosed.
1631.16 Exemptions.
1631.17 Deletion of exempted information.
1631.18 Annual report.
1631.19 Preservation of records.

 Subpart B_Production in Response to Subpoenas or Demands of Courts or 
                            Other Authorities

1631.30 Purpose and scope.
1631.31 Production prohibited unless approved by the Executive Director.
1631.32 Procedure in the event of a demand for disclosure.
1631.33 Procedure in the event of an adverse ruling.
1631.34 Certification and authentication of records.

                   Subpart C_Administrative Subpoenas

1631.40 Subpoena authority.
1631.41 Production of records.
1631.42 Service.
1631.43 Enforcement.

    Source: 55 FR 41052, Oct. 9, 1990, unless otherwise noted.



   Subpart A_Production or Disclosure of Records Under the Freedom of 
                      Information Act, 5 U.S.C. 552

    Authority: 5 U.S.C. 552.



Sec.  1631.1  Definitions.

    (a) Board means the Federal Retirement Thrift Investment Board.
    (b) Agency means agency as defined in 5 U.S.C. 552(e).
    (c) Executive Director means the Executive Director of the Federal 
Retirement Thrift Investment Board, as defined in 5 U.S.C. 8401(13) and 
as further described in 5 U.S.C. 8474.
    (d) FOIA means Freedom of Information Act, 5 U.S.C. 552, as amended.

[[Page 256]]

    (e) FOIA Officer means the Board's General Counsel or his or her 
designee.
    (f) General Counsel means the General Counsel of the Federal 
Retirement Thrift Investment Board.
    (g) Working days or workdays means those days when the Board is open 
for the conduct of Government business, and does not include Saturdays, 
Sundays, and Federal holidays.
    (h) Requester means a person making a FOIA request.
    (i) Submitter means any person or entity which provides confidential 
commercial information to the Board. The term includes, but is not 
limited to, corporations, state governments, and foreign governments.
    (j) FOIA Public Liaison means the Board official who is responsible 
for assisting in reducing delays, increasing transparency and 
understanding of the status of requests, and assisting in the resolution 
of disputes.
    (k) Requestor category means one of the three categories that 
agencies place requesters in for the purpose of determining whether a 
requester will be charged fees for search, review, and/or duplication, 
including:
    (1) Commercial use requestors,
    (2) Non-commercial scientific or educational institutions or news 
media requesters, and
    (3) All other requestors.
    (l) Fee waiver means the waiver or reduction of processing fees if a 
requester can demonstrate that certain statutory standards are satisfied 
including that the information is in the public interest and is not 
requested for a commercial interest.

[55 FR 41052, Oct. 9, 1990, as amended at 79 FR 68094, Nov. 14, 2014; 82 
FR 24826, May 31, 2017]



Sec.  1631.2  Purpose and scope.

    This subpart contains the regulations of the Federal Retirement 
Thrift Investment Board, implementing 5 U.S.C. 552. The regulations of 
this subpart describe the procedures by which records may be obtained 
from all organizational units within the Board and from its 
recordkeeper. Official records of the Board, except those already 
published in bulk by the Board, available pursuant to the requirements 
of 5 U.S.C. 552 shall be furnished to members of the public only as 
prescribed by this subpart. To the extent that it is not prohibited by 
other laws the Board also will make available records which it is 
authorized to withhold under 5 U.S.C. 552 whenever it determines that 
such disclosure is in the interest of the Thrift Savings Plan.



Sec.  1631.3  Organization and functions.

    (a) The Federal Retirement Thrift Investment Board was established 
by the Federal Employees' Retirement System Act of 1986 (Pub. L. 99-335, 
5 U.S.C. 8401 et seq.). Its primary function is to manage and invest the 
Thrift Savings Fund for the exclusive benefit of its participants (e.g., 
participating Federal employees, Federal judges, and Members of 
Congress). The Board is responsible for investment of the assets of the 
Thrift Savings Fund and the management of the Thrift Savings Plan. The 
Board consists of:
    (1) The five part-time members who serve on the Board;
    (2) The Office of the Executive Director;
    (3) The Office of Participant Operations and Policy;
    (4) The Office of General Counsel;
    (5) The Office of Investments;
    (6) The Office of Communications and Education;
    (7) The Office of Enterprise Planning;
    (8) The Office of Enterprise Risk Management;
    (9) The Office of External Affairs;
    (10) The Office of Financial Management;
    (11) The Office of Resource Management; and
    (12) The Office of Technology Services.
    (b) The Board has no field organization; however, it provides for 
its recordkeeping responsibility by contract or interagency agreement. 
The recordkeeper may be located outside of the Washington, DC area. 
Thrift Savings Plan records maintained for the Board by its recordkeeper 
are Board records subject to these regulations. Board offices are 
presently located at 77 K Street, NE., Suite 1000, Washington, DC 20002.

[55 FR 41052, Oct. 9, 1990, as amended at 59 FR 55331, Nov. 7, 1994; 77 
FR 11384, Feb. 27, 2012; 79 FR 68094, Nov. 14, 2014]

[[Page 257]]



Sec.  1631.4  Proactive disclosure of Board records.

    (a) Records that are required by the FOIA to be made available for 
public inspection and copying may be accessed through the Board's Web 
site at https://www.frtib.gov. The Board is responsible for determining 
which of its records are required to be made publicly available, as well 
as identifying additional records of interest to the public that are 
appropriate for public disclosure, and for posting and indexing such 
records. The Board shall ensure that its Web site of posted records and 
indices is reviewed and updated on an ongoing basis. The Board has a 
FOIA Public Liaison who can assist individuals in locating records 
particular to a component. The FOIA Public Liaison can be contacted at 
[email protected].
    (b) The FOIA Officer shall maintain an index of Board regulations, 
directives, bulletins, and published materials.
    (c) The FOIA officer shall also maintain a file open to the public, 
which shall contain copies of all grants or denials of FOIA requests, 
appeals, and appeal decisions by the Executive Director. The materials 
shall be filed by chronological number of request within each calendar 
year, indexed according to the exceptions asserted, and, to the extent 
feasible, indexed according to the type of records requested.

[55 FR 41052, Oct. 9, 1990, as amended at 59 FR 55331, 55332, Nov. 7, 
1994; 63 FR 41708, Aug. 5, 1998; 77 FR 11384, Feb. 27, 2012; 79 FR 
68094, Nov. 14, 2014; 82 FR 24826, May 31, 2017]



Sec.  1631.5  Records of other agencies.

    Requests for records that originated in another agency and that are 
in the custody of the Board may, in appropriate circumstances, be 
referred to that agency for consultation or processing, and the 
requestor shall be notified of the part or parts of the request that 
have been referred and provided with a point of contact within the 
receiving agency.

[82 FR 24826, May 31, 2017]



Sec.  1631.6  How to request records--form and content.

    (a) A request made under the FOIA may be submitted by one of the 
following methods:
    (1) In writing addressed to FOIA Officer, Federal Retirement Thrift 
Investment Board, 77 K Street NE., Suite 1000, Washington, DC 20002. The 
words ``FOIA Request'' should be clearly marked on both the letter and 
the envelope.
    (2) By electronic mail at [email protected]. The subject should 
include the words ``FOIA Request.''
    (3) By facsimile, Attn: FOIA Officer, at 202-942-1676. The facsimile 
should be clearly marked with the words ``FOIA Request.''
    (b) Each request must reasonably describe the record(s) sought, 
including, when known: Entity/individual originating the record, date, 
subject matter, type of document, location, and any other pertinent 
information which would assist in promptly locating the record(s). Each 
request should also describe the type of entity the requester is for fee 
purposes. See Sec.  1631.11.
    (c) When a request is not considered reasonably descriptive, or 
requires the production of voluminous records, or places an 
extraordinary burden on the Board, seriously interfering with its normal 
functioning to the detriment of the Thrift Savings Plan, the Board may 
require the person or agent making the FOIA request to confer with a 
Board representative in order to attempt to verify, and, if possible, 
narrow the scope of the request.
    (d) Upon initial receipt of the FOIA request, the FOIA Officer will 
determine which official or officials within the Board shall have the 
primary responsibility for collecting and reviewing the requested 
information and drafting a proposed response.
    (e) Any Board employee or official who receives a FOIA request shall 
promptly forward it to the FOIA Officer, at the above address. Any Board 
employee or official who receives an oral request for records shall 
inform the requestor that FOIA requires requests to be in writing 
according to the procedures set out herein.

[[Page 258]]

    (f) When a person requesting expedited access to records has 
demonstrated a compelling need, or when the Board has determined that it 
is appropriate to expedite its response, the Board will process the 
request ahead of other requests.
    (g) To demonstrate compelling need in accordance with paragraph (f) 
of this section, the requester must submit a written statement that 
contains a certification that the information provided therein is true 
and accurate to the best of the requester's knowledge and belief. The 
statement must demonstrate that:
    (1) The failure to obtain the record on an expedited basis could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual; or
    (2) The requester is a person primarily engaged in the dissemination 
of information, and there is an urgent need to inform the public 
concerning an actual or alleged Federal Government activity that is the 
subject of the request.

[55 FR 41052, Oct. 9, 1990, as amended at 59 FR 55331, Nov. 7, 1994; 63 
FR 41708, Aug. 5, 1998; 77 FR 11384, Feb. 27, 2012; 77 FR 61229, Oct. 9, 
2012; 82 FR 24826, May 31, 2017]



Sec.  1631.7  Initial determination.

    The FOIA Officer shall have the authority to approve or deny 
requests received pursuant to these regulations. The decision of the 
FOIA Officer shall be final, subject only to administrative review as 
provided in Sec.  1631.10.



Sec.  1631.8  Prompt response.

    (a)(1) When the FOIA Officer receives a request for expedited 
processing, he or she will determine within 10 work days whether to 
process the request on an expedited basis.
    (2) When the FOIA Officer receives a request for records which he or 
she, in good faith, believes is not reasonably descriptive, he or she 
will so advise the requester within 5 work days. The time limit for 
processing such a request will not begin until receipt of a request that 
reasonably describes the records being sought.
    (b) The FOIA Officer will either approve or deny a reasonably 
descriptive request for records within 20 workdays after receipt of the 
request. Whenever the Board cannot meet the statutory time limit for 
processing a request because of ``unusual circumstances,'' as defined in 
the FOIA, and the Board extends the time limit on that basis, the Board 
must, before expiration of the 20-day period to respond, notify the 
requester in writing of the unusual circumstances involved and of the 
date by which the Board estimates processing of the request will be 
completed. Where the extension exceeds 10 working days, the Board must, 
as described by the FOIA, provide the requester with an opportunity to 
modify the request or arrange an alternative time period for processing 
the original or modified request through the Board's FOIA Public Liaison 
or FOIA Officer.
    (c) When additional time is required for one of the reasons stated 
in paragraph (b) of this section, the FOIA Officer will extend this time 
period for an additional 10 work days by written notice to the 
requester. If the Board will be unable to process the request within 
this additional time period, the requester will be notified and given 
the opportunity to--
    (1) Limit the scope of the request; or
    (2) Arrange with the FOIA Officer an alternative time frame for 
processing the request.

[63 FR 41708, Aug. 5, 1998, as amended at 82 FR 24826, May 31, 2017]



Sec.  1631.9  Responses--form and content.

    (a) When a requested record has been identified and is available, 
the FOIA officer shall notify the person making the request as to where 
and when the record is available for inspection or that copies will be 
made available. The notification shall also provide the requestor with 
an estimated amount of fees assessed under Sec.  1631.13 of this part, 
including a breakdown of the fees for search, review, and/or 
duplication.
    (b) A denial or partial denial of a request for a record shall be in 
writing signed by the FOIA Officer and shall include:
    (1) The name and title of the person making the determination;
    (2) A statement of fees assessed, if any; and
    (3) A reference to the specific exemption under the FOIA authorizing 
the

[[Page 259]]

withholding of the record, and a brief explanation of how the exemption 
applies to the record withheld; or
    (4) If appropriate, a statement that, after diligent effort, the 
requested records have not been found or have not been adequately 
examined during the time allowed by Sec.  1631.8, and that the denial 
will be reconsidered as soon as the search or examination is complete; 
and
    (5) A statement that the denial may be appealed to the Executive 
Director within 90 calendar days of receipt of the denial or partial 
denial, that the requestor has the option to contact the Agency's FOIA 
Liaison at [email protected], and that the requestor has the 
option to contact the Office of Government Information Service (OGIS) as 
a non-exclusive alternative to litigation.
    (c) If, after diligent effort, existing requested records have not 
been found, or are known to have been destroyed or otherwise disposed 
of, the FOIA Officer shall so notify the requester.

[55 FR 41052, Oct. 9, 1990, as amended at 79 FR 68094, Nov. 14, 2014; 82 
FR 24827, May 31, 2017]



Sec.  1631.10  Appeals to the Executive Director from initial denials.

    (a) A requestor may appeal any adverse determinations to the 
Executive Director. The appeal must be made in writing and for it to be 
considered timely it must be postmarked, or in the case of electronic 
submissions, transmitted, within 90 calendar days of receipt of the 
denial or partial denial. The appeal should be addressed to the 
Executive Director, Federal Retirement Thrift Investment Board, 77 K 
Street NE., Suite 1000, Washington, DC 20002, and should be clearly 
labeled as a ``Freedom of Information Act Appeal.''
    (b)(1) The Executive Director will act upon the appeal of a denial 
of a request for expedited processing within 5 work days of its receipt.
    (2) The Executive Director will act upon the appeal of a denial of a 
request for records within 20 work days of its receipt.
    (c) The Executive Director will decide the appeal in writing and 
mail the decision to the requester.
    (d) If the appeal concerns an expedited processing request and the 
decision is in favor of the person making the request, the Executive 
Director will order that the request be processed on an expedited basis. 
If the decision concerning a request for records is in favor of the 
requester, the Executive Director will order that the subject records be 
promptly made available to the person making the request.
    (e) If the appeal of a request for expedited processing of records 
is denied, in whole or in part, the Executive Director's decision will 
set forth the basis for the decision. If the appeal of a request for 
records is denied, in whole or in part, the Executive Director's 
decision will set forth the exemption relied on and a brief explanation 
of how the exemption applies to the records withheld and the reasons for 
asserting it, if different from the reasons described by the FOIA 
Officer under Sec.  1631.9. The denial of a request for records will 
state that the person making the request may, if dissatisfied with the 
decision on appeal, file a civil action in Federal court. (A Federal 
court does not have jurisdiction to review a denial of a request for 
expedited processing after the Board has provided a complete response to 
the request.) The denial will also inform the requester of the mediation 
services offered by the Office of Government Information Services (OGIS) 
of the National Archives and Records Administration as a non-exclusive 
alternative to litigation. If the FOIA Officer's decision is remanded or 
modified on appeal, the requestor will be notified of that determination 
in writing.
    (f) No personal appearance, oral argument, or hearing will 
ordinarily be permitted in connection with an appeal of a request for 
expedited processing or an appeal for records.
    (g) On appeal of a request concerning records, the Executive 
Director may reduce any fees previously assessed.
    (h) Seeking mediation and dispute resolution services through OGIS 
is a voluntary process. If the requestor chooses to use these services, 
the Board will work with OGIS to resolve disputes between requestors and 
the Board as a non-exclusive alternative to litigation.

[[Page 260]]

    (i) Before seeking review by a court of the FOIA Officer's adverse 
determination, a requestor generally must first submit a timely 
administrative appeal to the Executive Director.

[79 FR 68094, Nov. 14, 2014, as amended at 82 FR 24827, May 31, 2017]



Sec.  1631.11  Fees to be charged--categories of requesters.

    (a) In general, the Board will charge for processing requests under 
the FOIA in accordance with the provisions of this section and with the 
OMB Guidelines. For purposes of assessing fees there are three 
categories of FOIA requestors--commercial use requestors, non-commercial 
scientific or educational institutions or news media requesters, and all 
other requestors.
    (1) Fees shall be limited to reasonable standard charges for 
document search, duplication, and review, when records are requested for 
commercial use. Commercial users are not entitled to two hours of free 
search time or 100 free pages of reproduction of documents. The full 
allowable direct cost of searching for, and reviewing records will be 
charged even if there is ultimately no disclosure of records. A 
commercial use request is a request that asks for information for a use 
or a purpose that furthers a commercial, trade, or profit interest, 
which can include furthering those interests through litigation. The 
Board's decision to place a requester in the commercial use category 
will be made on a case-by-case basis based on the requester's intended 
use of the information. The Board will notify requesters of their 
placement in this category.
    (2) Fees shall be limited to reasonable standard charges for 
document duplication when records are not sought for commercial use and 
the request is made by a representative of the news media. A 
representative of the news media is any person or entity that gathers 
information of potential interest to a segment of the public, uses its 
editorial skills to turn the raw materials into a distinct work, and 
distributes that work to an audience. The term ``news'' means 
information that is about current events or that would be of current 
interest to the public. The Board will advise requesters of their 
placement in this category.
    (3) Fees shall be limited to reasonable standard charges for 
document duplication when records are not sought for commercial use and 
the request is made by an educational or noncommercial scientific 
institution, whose purpose is scholarly or scientific research. A 
noncommercial scientific institution is an institution that is not 
operated on a ``commercial'' basis, as defined in paragraph (a)(1) of 
this section and that is operated solely for the purpose of conducting 
scientific research the results of which are not intended to promote any 
particular product or industry. A requester in this category must show 
that the request is authorized by and is made under the auspices of a 
qualifying institution and that the records are sought to further 
scientific research and are not for a commercial use. The Board will 
advise requesters of their placement in this category.
    (4) For any request which does not meet the criteria contained in 
paragraphs (a)(1) through (3) of this section, fees shall be limited to 
reasonable standard charges for document search and duplication, except 
that the first 100 pages of reproduction and the first two hours of 
search time will be furnished without charge. If computer search time is 
required, the first two hours of computer search time will be based on 
the hourly cost of operating the central processing unit and the 
operator's hourly salary plus 23.5 percent. When the cost of the 
computer search, including the operator time and the cost of operating 
the computer to process the request, equals the equivalent dollar amount 
of two hours of the salary of the person performing the search, i.e., 
the operator, the Board shall begin assessing charges for computer 
search. Requests from individuals requesting records about themselves 
filed in the Board's systems of records shall continue to be treated 
under the provisions of the Privacy Act of 1974, which permit fees only 
for reproduction. The Board's fee schedule is set out in Sec.  1631.14 
of this part.
    (b) Except for requests that are for a commercial use, the Board may 
not charge for the first two hours of search

[[Page 261]]

time or for the first 100 pages of reproduction. However, a requestor 
may not file multiple requests at the same time, each seeking portions 
of a document or documents, solely in order to avoid payment of fees. 
When the Board believes that a requester or, on rare occasions, a group 
of requesters acting in concert, is attempting to break a request down 
into a series of requests for the purpose of evading the assessment of 
fees, the Board may aggregate any such requests and charge accordingly. 
For example, it would be reasonable to presume that multiple requests of 
this type made within a 30 calendar day period had been made to avoid 
fees. For requests made over a long period, however, the Board must have 
a reasonable basis for determining that aggregation is warranted in such 
cases. Before aggregating requests from more than one requester, the 
Board must have a reasonable basis on which to conclude that the 
requesters are acting in concert and are acting specifically to avoid 
payment of fees. In no case may the Board aggregate multiple requests on 
unrelated subjects from one requester.
    (c) In accordance with the prohibition of section (4)(A)(iv) of the 
Freedom of Information Act, as amended, the Board shall not charge fees 
to any requester, including commercial use requesters, if the cost of 
collecting a fee would be equal to or greater than the fee itself.
    (1) For commercial use requesters, if the direct cost of searching 
for, reviewing for release, and duplicating the records sought would not 
exceed $25, the Board shall not charge the requester any costs.
    (2) For requests from representatives of news media or educational 
and noncommercial scientific institutions, excluding the first 100 pages 
which are provided at no charge, if the duplication cost would not 
exceed $25, the Board shall not charge the requester any costs.
    (3) For all other requests not falling within the category of 
commercial use requests, representatives of news media, or educational 
and noncommercial scientific institutions, if the direct cost of 
searching for and duplicating the records sought, excluding the first 
two hours of search time and first 100 pages which are free of charge, 
would not exceed $25, the Board shall not charge the requester any 
costs.
    (d) Except as provided in paragraphs (d)(1) through (d)(3) of this 
section, the Board will not assess any search fees (or duplication fees 
for requesters under (a)(2) or (3) of this section) if the Board fails 
to comply with the time limits set forth in Sec.  1631.8.
    (1) If the Board determines that ``unusual circumstances,'' as 
defined in the FOIA, apply and the Board provided a timely written 
notice to the requester in accordance with Sec.  1631.8, the Board is 
excused for an additional 10 days from the restrictions of this section.
    (2) If the Board has determined that unusual circumstances apply and 
more than 5,000 pages are necessary to respond to the request, the Board 
may charge search fees (or duplication fees for requesters under (a)(2) 
or (3) of this section) if the Board provided a timely written notice to 
the requester in accordance with Sec.  1631.8 and the Board has 
discussed with the requester, or made not less than 3 good-faith 
attempts to do so, how the requester could effectively limit the scope 
of the request.
    (3) If a court has determined that exceptional circumstances exist, 
as defined in the FOIA, the Agency's delay shall be excused in 
accordance with the court order.

[55 FR 41052, Oct. 9, 1990, as amended at 63 FR 41708, Aug. 5, 1998; 82 
FR 24827, May 31, 2017]



Sec.  1631.12  Waiver or reduction of fees.

    (a) The Board may waive all fees or levy a reduced fee when 
disclosure of the information requested is deemed to be in the public 
interest because it is likely to contribute significantly to public 
understanding of the operations or activities of the Board or Federal 
Government and is not primarily in the commercial interest of the 
requester. In making its decision on waiving or reducing fees, the Board 
will consider the following factors:
    (1) Whether the subject of the requested records concerns the 
operations or activities of the Board or the Government,

[[Page 262]]

    (2) Whether the disclosure is likely to contribute to an 
understanding of Government operations or activities (including those of 
the Board),
    (3) Whether the disclosure is likely to contribute significantly to 
public understanding of TSP or Government operations or activities,
    (4) Whether the requester has a commercial interest that would be 
furthered by the requested disclosure, and
    (5) Whether the magnitude of the identified commercial interest of 
the requester is sufficiently large, in comparison with the public 
interest in disclosure, that disclosure is primarily in the commercial 
interest of the requester.
    (b) A fee waiver request must indicate the existence and magnitude 
of any commercial interest that the requester has in the records that 
are the subject of the request.



Sec.  1631.13  Prepayment of fees over $250.

    (a) When the Board estimates or determines that allowable charges 
that a requester may be required to pay are likely to exceed $250.00, 
the Board may require a requester to make an advance payment of the 
entire fee before continuing to process the request.
    (b) When a requester has previously failed to pay a fee charged in a 
timely fashion (i.e., within 30 calendar days of the date of the 
billing), the Board may require the requester to pay the full amount 
owed plus any applicable interest as provided in Sec.  1631.14(d), and 
to make an advance payment of the full amount of the estimated fee 
before the agency begins to process a new request or a pending request 
from that requester.
    (c) When the Board acts under paragraph (a) or (b) of this section, 
the administrative time limits prescribed in subsection (a)(6) of the 
FOIA (i.e., 20 working days from the receipt of initial requests and 20 
working days from receipt of appeals from initial denial, plus 
permissible extensions of these time limits) will begin only after the 
Board has received fee payments under paragraph (a) or (b) of this 
section.

[55 FR 41052, Oct. 9, 1990, as amended at 63 FR 41709, Aug. 5, 1998]



Sec.  1631.14  Fee schedule.

    (a) Manual searches for records. The Board will charge at the salary 
rate(s) plus 23.5 percent (to cover benefits) of the employee(s) 
conducting the search. The Board may assess charges for time spend 
searching, even if the Board fails to locate the records or if records 
located are determined to be exempt from disclosure.
    (b) Computer searches for records. The Board will charge the actual 
direct cost of providing the service. This will include the cost of 
operating the central processing unit (CPU) for that portion of 
operating time that is directly attributable to searching for records 
responsive to a FOIA request and operator/programmer salary, plus 23.5 
percent, apportionable to the search. The Board may assess charges for 
time spent searching, even if the Board fails to locate the records or 
if records located are determined to be exempt from disclosure.
    (c) Duplication costs. (1) For copies of documents reproduced on a 
standard office copying machine in sizes up to 8\1/2\ x 14 inches, the 
charge will be $.15 per page.
    (2) The fee for reproducing copies of records over 8\1/2\ x 14 
inches, or whose physical characteristics do not permit reproduction by 
routine electrostatic copying, shall be the direct cost of reproducing 
the records through Government or commercial sources. If the Board 
estimates that the allowable duplication charges are likely to exceed 
$25, it shall notify the requester of the estimated amount of fees, 
unless the requester had indicated in advance his/her willingness to pay 
fees as those anticipated. Such a notice shall offer a requester the 
opportunity to confer with agency personnel with the objective of 
reformulating the request to meet his/her needs at a lower cost.
    (3) For copies prepared by computer, such as tapes, printouts, or 
CD's the Board shall charge the actual cost, including operator time, of 
producing the tapes, printouts, or CD's. If the Board estimates that the 
allowable duplication charges are likely to exceed $25, it shall notify 
the requester of the estimated amount of fees, unless the requester has 
indicated in advance his/her willingness to pay fees as high as

[[Page 263]]

those anticipated. Such a notice shall offer a requester the opportunity 
to confer with agency personnel with the objective of reformulating the 
request to meet his/her needs at a lower cost.
    (4) For other methods of reproduction or duplication, the Board 
shall charge the actual direct costs of producing the document(s). If 
the Board estimates that the allowable duplication charges are likely to 
exceed $25, it shall notify the requester of the estimated amount of 
fees, unless the requester has indicated in advance his/her willingness 
to pay fees as high as those anticipated. Such a notice shall offer a 
requester the opportunity to confer with agency personnel with the 
objective of reformulating the request to meet his/her needs at a lower 
cost.
    (d) Interest may be charged to those requesters who fail to pay fees 
charged. The Board may begin assessing interest charges on the amount 
billed starting on the 31st calendar day following the day on which the 
billing was sent. Interest will be at the rate prescribed in section 
3717 of title 31 of the United States Code, and it will accrue from the 
date of the billing.
    (e) The Board shall use the most efficient and least costly methods 
to comply with requests for documents made under the FOIA. The Board may 
choose to contract with private sector services to locate, reproduce, 
and disseminate records in response to FOIA requests when that is the 
most efficient and least costly method. When documents responsive to a 
request are maintained for distribution by agencies operating statutory-
based fee schedule programs, such as, but not limited to, the Government 
Printing Office or the National Technical Information Service, the Board 
will inform requesters of the steps necessary to obtain records from 
those sources.

[55 FR 41052, Oct. 9, 1990, as amended at 63 FR 41709, Aug. 5, 1998; 82 
FR 24828, May 31, 2017]



Sec.  1631.15  Information to be disclosed.

    (a) In general, all records of the Board are available to the 
public, as required by the Freedom of Information Act. However, the 
Board claims the right, where it is applicable, to withhold material 
under the provisions specified in the Freedom of Information Act as 
amended (5 U.S.C. 552(b)). Nevertheless, the Board will consider whether 
partial disclosure of information is possible whenever full disclosure 
of the record is not and take reasonable steps to segregate and release 
nonexempt information.
    (b) Records from non-U.S. Government source. (1)(i) Board personnel 
will generally consider two of the nine exemptions in the FOIA in 
deciding whether to withhold from disclosure material from a non-U.S. 
Government source.
    (ii) Exemption 4 permits withholding of ``trade secrets and 
commercial or financial information obtained from a person as privileged 
or confidential.'' The term ``person'' refers to individuals as well as 
to a wide range of entities, including corporations, banks, state 
governments, agencies of foreign governments, and Native American tribes 
or nations, who provide information to the government. Exemption 6 
permits withholding certain information, the disclosure of which ''would 
constitute a clearly unwarranted invasion of personal privacy.''
    (2)(i) Exemption 4. Commencing January 1, 1988, the submitter of 
confidential commercial information must, at the time the information is 
submitted to the Board or within 30 calendar days of such submission, 
designate any information the disclosure of which the submitter claims 
could reasonably be expected to cause substantial competitive harm. The 
submitter as part of its submission, must explain the rationale for the 
designation of the information as commercial and confidential.
    (ii) Confidential commercial information means records provided to 
the Board by a submitter that arguably contains material exempt from 
release under Exemption 4 of the FOIA, 5 U.S.C. 552(b)(4), because 
disclosure could reasonably be expected to cause substantial competitive 
harm.
    (iii) After January 1, 1988, a submitter who does not designate 
portions of a submission as confidential commercial information waives 
that basis for nondisclosure unless the Board determines that it has 
substantial reason to believe that disclosure of the requested records 
would result in substantial harm to the competitive position of the 
submitter.

[[Page 264]]

    (3) When the Board determines that it has substantial reason to 
believe that disclosure of the requested records would result in 
substantial competitive harm to the submitter, and has no designation 
from the submitter, it shall notify the submitter of the following:
    (i) That a FOIA request has been received seeking the record,
    (ii) That disclosure of the record may be required,
    (iii) That disclosure of the record could result in competitive harm 
to the submitter,
    (iv) That the submitter has a period of seven workdays from date of 
notice within which it or a designee may object to the disclosure its 
records, and
    (v) That a detailed explanation should be submitted setting forth 
all grounds as to why the disclosure would result in substantial 
competitive harm, such as, the general custom or usage in the business 
of the information in the record, the number and situation of the 
persons who have access to the record, the type and degree of risk of 
financial injury that release would cause, and the length of time the 
record needs to be kept confidential.
    (4) In exceptional circumstances, the Board may extend by seven 
workdays the time for a submitter's response for good cause.
    (5) The Board shall give careful consideration to all specified 
grounds for nondisclosure prior to making an administrative 
determination on the issue of competitive harm.
    (6) Should the Board determine to disclose the requested records, it 
shall provide written notice to the submitter, explaining briefly why 
the submitter's objections were not sustained and setting forth the date 
for disclosure, which date may be less than 10 calendar days after the 
date of the letter to the submitter.
    (7) A submitter who provided records to the Board prior to January 
1, 1988, and did not designate which records contain confidential 
commercial information, shall be notified as provided in Sec.  
1631.15(b)(3). After making such notification, the Board will follow the 
procedures set forth in Sec.  1631.15(b)(4)-(6).
    (8) The Board will, as a general rule, look favorably upon 
recommendations for withholding information about ideas, methods, and 
processes that are unique; about equipment, materials, or systems that 
are potentially patentable; or about a unique use of equipment which is 
specifically outlined.
    (9) The Board will not withhold information that is known through 
custom or usage in the relevant trade, business, or profession, or 
information that is generally known to any reasonably educated person. 
Self-evident statements or reviews of the general state of the art will 
not ordinarily be withheld.
    (10) The Board will withhold all cost data submitted, except the 
total estimated costs from each year of a contract. It will release 
these total estimated costs and ordinarily release explanatory material 
and headings associated with the cost data, withholding only the figures 
themselves. If a contractor believes that some of the explanatory 
material should be withheld, that material must be identified and a 
justification be presented as to why it should not be released.
    (11) Exemption 6. This exemption is not a blanket exemption for all 
personal information submitted by a non-U.S. Government source. The 
Board will balance the need to keep a person's private affairs from 
unnecessary public scrutiny with the public's right to information on 
Board records. As a general practice, the Board will release information 
about any person named in a contract itself or about any person who 
signed a contract as well as information given in a proposal about any 
officer of a corporation submitting that proposal. Depending upon the 
circumstances, the Board may release most information in resumes 
concerning employees, including education and experience. Efforts will 
be made to identify information that should be deleted and offerors are 
urged to point out such material for guidance. Any information in the 
proposal, such as the names of staff persons, which might, if released, 
constitute an unwarranted invasion of personal privacy if released 
should be identified and a justification for non-release provided in 
order to receive proper consideration.

[55 FR 41052, Oct. 9, 1990, as amended at 82 FR 24828, May 31, 2017]

[[Page 265]]



Sec.  1631.16  Exemptions.

    The Freedom of Information Act exempts from all of its publication 
and disclosure requirements nine categories of records which are 
described in 5 U.S.C. 552(b). These categories include such matters as 
national defense and foreign policy information, investigatory files, 
internal procedures and communications, materials exempted from 
disclosure by other statutes, information given in confidence and 
matters involving personal privacy.



Sec.  1631.17  Deletion of exempted information.

    Where requested records contain matters which are exempted under 5 
U.S.C. 552(b) but which matters are reasonably segregable from the 
remainder of the records, they shall be disclosed by the Board with 
deletions. To each such record, the Board shall indicate, if technically 
feasible, the precise amount of information deleted and the exemption 
under which the deletion is made, at the place in the records where the 
deletion is made, unless including that indication would harm an 
interest protected by the exemption.

[82 FR 24828, May 31, 2017]



Sec.  1631.18  Annual report.

    The Executive Director will submit annually, on or before February 
1, a Freedom of Information report covering the preceding fiscal year to 
the Attorney General of the United States. The report will include 
matters required by 5 U.S.C. 552(e).

[63 FR 41709, Aug. 5, 1998]



Sec.  1631.19  Preservation of records.

    (a) The Board must preserve all correspondence pertaining to the 
requests that it receives as well as copies of all requested records, 
until disposition or destruction is authorized by the Board's General 
Records Schedule of the National Archives and Records Administration 
(NARA) or other NARA-approved records retention schedule.
    (b) Materials that are identified as responsive to a FOIA request 
will not be disposed of or destroyed while the request or a related 
appeal of lawsuit is pending. This is true even if they would otherwise 
be authorized for disposition under the Board's General Records Schedule 
of NARA or other NARA-approved records schedule.

[82 FR 24828, May 31, 2017]



 Subpart B_Production in Response to Subpoenas or Demands of Courts or 
                            Other Authorities

    Authority: 5 U.S.C. 552.



Sec.  1631.30  Purpose and scope.

    This subpart contains the regulations of the Board concerning 
procedures to be followed when a subpoena, order, or other demand 
(hereinafter in this subpart referred to as a ``demand'') of a court or 
other authority is issued for the production or disclosure of:
    (a) Any material contained in the files of the Board;
    (b) Any information relating to materials contained in the files of 
the Board; or
    (c) Any information or material acquired by an employee of the Board 
as a part of the performance of his or her official duties or because of 
his or her official status.



Sec.  1631.31  Production prohibited unless approved by the Executive Director.

    No employee or former employee of the Board shall, in response to a 
demand of a court or other authority, produce any material contained in 
the files of the Board or disclose any information or produce any 
material acquired as part of the performance of his or her official 
status without the prior approval of the Executive Director or his or 
her designee.



Sec.  1631.32  Procedure in the event of a demand for disclosure.

    (a) Whenever a demand is made upon an employee or former employee of 
the Board for the production of material or the disclosure of 
information described in Sec.  1631.31, he or she shall immediately 
notify the Executive Director or his or her designee. If possible, the 
Executive Director or his or her designee shall be notified before the 
employee or former

[[Page 266]]

employee concerned replies to or appears before the court or other 
authority.
    (b) If response to the demand is required before instructions from 
the Executive Director or his or her designee are received, an attorney 
designated for that purpose by the Board shall appear with the employee 
or former employee upon whom the demand has been made and shall furnish 
the court or other authority with a copy of the regulations contained in 
this part and inform the court or other authority that the demand has 
been or is being, as the case may be, referred for prompt consideration 
by the Executive Director or his or her designee. The court or other 
authority shall be requested respectfully to stay the demand pending 
receipt of the requested instructions from the Executive Director.



Sec.  1631.33  Procedure in the event of an adverse ruling.

    If the court or other authority declines to stay the effect of the 
demand in response to a request made in accordance with Sec.  1631.32(b) 
pending receipt of instructions from the Executive Director, or his or 
her designee, or if the court or other authority rules that the demand 
must be complied with irrespective of the instructions from the 
Executive Director not to produce the material or disclose the 
information sought, the employee or former employee upon whom the demand 
has been made shall respectfully decline to comply with the demand. 
[United States ex. rel. Touhy v. Ragen, 340 U.S. 462 (1951)].



Sec.  1631.34  Certification and authentication of records.

    (a) Upon request, the records custodian or other qualified 
individual shall authenticate copies of books, records, papers, 
writings, and documents by attaching a written declaration that complies 
with current Federal Rules of Evidence. No seal or notarization shall be 
required. Copies of any books, records, papers, or other documents in 
the Federal Retirement Thrift Investment Board shall be admitted in 
evidence equally with the originals thereof when authenticated in this 
manner.
    (b) Fees for copying and certification are set forth in 5 CFR 
1630.16.

[72 FR 53414, Sept. 19, 2007]



                   Subpart C_Administrative Subpoenas

    Authority: 5 U.S.C. 8480.

    Source: 75 FR 8796, Feb. 26, 2010, unless otherwise noted.



Sec.  1631.40  Subpoena authority.

    The Executive Director or General Counsel may issue subpoenas 
pursuant to 5 U.S.C. 8480. The General Counsel may delegate this 
authority to a Deputy General Counsel, Associate General Counsel, or 
Assistant General Counsel.



Sec.  1631.41  Production of records.

    A subpoena may require the production of designated books, 
documents, records, electronically stored information, or tangible 
materials in the possession or control of the subpoenaed party when the 
individual signing the subpoena has determined that production is 
necessary to carry out any of the Agency's functions.



Sec.  1631.42  Service.

    (a) Return of service. Each subpoena shall be accompanied by a 
Return of Service certificate stating the date and manner of service and 
the names of the persons served.
    (b) Methods of service. Subpoenas shall be served by one of the 
following methods:
    (1) Certified or registered mail, return receipt requested to the 
principal place of business or the last known residential address of the 
subpoenaed party.
    (2) Fax or electronic transmission to the subpoenaed party or the 
subpoenaed party's counsel, provided the subpoenaed party gives prior 
approval.
    (3) Personal delivery at the principal place of business or 
residence of the subpoenaed party during normal business hours.



Sec.  1631.43  Enforcement.

    Upon the failure of any party to comply with a subpoena, the General 
Counsel shall request that the Attorney

[[Page 267]]

General seek enforcement of the subpoena in the appropriate United 
States district court.



PART 1632_RULES REGARDING PUBLIC OBSERVATION OF MEETINGS--Table of Contents



Sec.
1632.1 Purpose and scope.
1632.2 Definitions.
1632.3 Conduct of agency business.
1632.4 Meetings open to public observation.
1632.5 Exemptions.
1632.6 Public announcement of meetings.
1632.7 Meetings closed to public observation.
1632.8 Changes with respect to publicly announced meetings.
1632.9 Certification of General Counsel.
1632.10 Transcripts, recordings, and minutes.
1632.11 Procedures for inspection and obtaining copies of transcriptions 
          and minutes.

    Authority: 5 U.S.C. 552b and 5 U.S.C. 8474.

    Source: 53 FR 36777, Sept. 22, 1988, unless otherwise noted.



Sec.  1632.1  Purpose and scope.

    This part is issued by the Federal Retirement Thrift Investment 
Board (Board) under section 552b of title 5 of the United States Code, 
the Government in the Sunshine Act, to carry out the policy of the Act 
that the public is entitled to the fullest practicable information 
regarding the decision making processes of the Board while at the same 
time preserving the rights of individuals and the ability of the Board 
to carry out its responsibilities. These regulations fulfill the 
requirement of subsection (g) of the Act that each agency subject to the 
provisions of the Act shall promulgate regulations to implement the open 
meeting requirements of subsections (b) through (f) of the Act.



Sec.  1632.2  Definitions.

    For purposes of this part, the following definitions shall apply:
    (a) The term Act means the Government in the Sunshine Act, 5 U.S.C. 
552b.
    (b) The term Board means the Federal Retirement Thrift Investment 
Board and subdivisions thereof.
    (c) The term meeting means the deliberations of at least the number 
of individual agency members required to take action on behalf of the 
Board where such deliberations determine or result in the joint conduct 
or disposition of official Board business. However, this term does not 
include--
    (1) Deliberations required or permitted by subsection (d) or (e) of 
the Act (relating to decisions to close all or a portion of a meeting, 
or to decisions on the timing or content of an announcement of a 
meeting), or
    (2) The conduct or disposition of official agency business by 
circulating written material to individual members.
    (d) The term number of individual agency members required to take 
action on behalf of the agency means three members.
    (e) The term member means a member of the Board appointed under 
section 101 of the Federal Employees' Retirement System Act of 1986, 5 
U.S.C. 8472.
    (f) The term public observation means that the public shall have the 
right to listen and observe but not the right to participate in the 
meeting or to record any of the meeting by means of cameras or 
electronic or other recording devices unless approval in advance is 
obtained from the Secretary of the Board.



Sec.  1632.3  Conduct of agency business.

    Members shall not jointly conduct or dispose of official Board 
business other than in accordance with this part.



Sec.  1632.4  Meetings open to public observation.

    (a) Except as provided in Sec.  1632.5 of this part, every portion 
of every meeting of the agency shall be open to public observation.
    (b) The Freedom of Information Act, 5 U.S.C. 552, and the Board's 
implementing regulations, 5 CFR part 1611, shall govern the availability 
to the public of copies of documents considered in connection with the 
Board's discussion of agenda items for a meeting that is open to public 
observation.
    (c) The Board will maintain mailing lists of names and addresses of 
all persons who wish to receive copies of agency announcements of 
meetings

[[Page 268]]

open to public observation. Requests for announcements may be made by 
telephoning or by writing to the Office of External Affairs, Federal 
Retirement Thrift Investment Board, 77 K Street, NE., Suite 1000, 
Washington, DC 20002.

[53 FR 36777, Sept. 22, 1988, as amended at 59 FR 55331, Nov. 7, 1994; 
77 FR 11384, Feb. 27, 2012]



Sec.  1632.5  Exemptions.

    (a) Except in a case where the Board finds that the public interest 
requires otherwise, the Board may close a meeting or a portion or 
portions of a meeting under the procedures specified in Sec.  1632.7 or 
Sec.  1632.8 of this part, and withhold information under the provisions 
of Sec. Sec.  1632.6, 1632.7, 1632.8, or 1632.11 of this part, where the 
Board properly determines that such meeting or portion of its meeting or 
the disclosure of such information is likely to:
    (1) Disclose matters that are:
    (i) Specifically authorized under criteria established by an 
Executive Order to be kept secret in the interests of national defense 
or foreign policy, and
    (ii) In fact properly classified pursuant to such Executive Order;
    (2) Relate solely to internal personnel rules and practices;
    (3) Disclose matters specifically exempted from disclosure by 
statute (other than section 552 of title 5 of the United States Code), 
provided that such statute:
    (i) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue, or
    (ii) Established particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (4) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (5) Involve accusing any person of a crime, or formally censuring 
any person;
    (6) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (7) Disclose investigatory records compiled for law enforcement 
purposes, or information which if written would be contained in such 
records, but only to the extent that the production of such records or 
information would:
    (i) Interfere with enforcement proceedings,
    (ii) Deprive a person of a right to a fair trial or an impartial 
adjudication,
    (iii) Constitute an unwarranted invasion of personal privacy,
    (iv) Disclose the identity of a confidential source and, in the case 
of a record compiled by a criminal law enforcement authority in the 
course of a criminal investigation, or by a Federal agency conducting a 
lawful national security intelligence investigation, confidential 
information furnished only by the confidential source,
    (v) Disclose investigative techniques and procedures, or
    (vi) Endanger the life or physical safety of law enforcement 
personnel;
    (8) Disclose information contained in or related to examination, 
operating, or condition reports prepared by or on behalf of, or for the 
use of the Board or other Federal agency responsible for the regulation 
or supervision of financial institutions;
    (9) Disclose information the premature disclosure of which would:
    (i) Be likely to (A) lead to significant speculation in currencies, 
securities, or commodities, or (B) significantly endanger the stability 
of any financial institution; or
    (ii) Be likely to significantly frustrate implementation of a 
proposed action except that paragraph (a)(9)(ii) of this section shall 
not apply in any instance where the Board has already disclosed to the 
public the content or nature of its proposed action, or where the Board 
is required by law to make such disclosure on its own initiative prior 
to taking final action on such proposal; or
    (10) Specifically concern the issuance of a subpoena, participation 
in a civil action or proceeding, an action in a foreign court or 
international tribunal, or an arbitration, or the initiation, conduct, 
or disposition of a particular case of formal agency adjudication 
pursuant to the procedures in section 554 of title 5 of the United 
States Code or otherwise involving a determination on the record after 
opportunity for a hearing.

[[Page 269]]

    (b) [Reserved]



Sec.  1632.6  Public announcement of meetings.

    (a) Except as otherwise provided by the Act, public announcement of 
meetings open to public observation and meetings to be partially or 
completely closed to public observation pursuant to Sec.  1632.7 of this 
part will be made at least one week in advance of the meeting. Except to 
the extent such information is determined to be exempt from disclosure 
under Sec.  1632.5 of this part, each such public announcement will 
state the time, place and subject matter of the meeting, whether it is 
to be open or closed to the public, and the name and phone number of the 
official designated to respond to requests for information about the 
meeting.
    (b) If a majority of the members of the Board determines by a 
recorded vote that Board business requires that a meeting covered by 
paragraph (a) of this section be called at a date earlier than that 
specified in paragraph (a) of this section, the Board shall make a 
public announcement of the information specified in paragraph (a) of 
this section at the earliest practicable time.
    (c) Changes in the subject matter of a publicly announced meeting, 
or in the determination to open or close a publicly announced meeting or 
any portion of a publicly announced meeting to public observation, or in 
the time or place of a publicly announced meeting made in accordance 
with the procedures specified in Sec.  1632.9 of this part, will be 
publicly announced at the earliest practicable time.
    (d) Public announcements required by this section will be posted at 
the Board's External Affairs Office and may be made available by other 
means or at other locations as may be desirable.
    (e) Immediately following each public announcement required by this 
section, notice of the time, place and subject matter of a meeting, 
whether the meeting is open or closed, any change in one of the 
preceding announcements and the name and telephone number of the 
official designated by the Board to respond to requests about the 
meeting, shall also be submitted for publication in the Federal 
Register.



Sec.  1632.7  Meetings closed to public observation.

    (a) A meeting or a portion of a meeting will be closed to public 
observation, or information as to such meeting or portion of a meeting 
will be withheld, only by recorded vote of a majority of the Members of 
the Board when it is determined that the meeting or the portion of the 
meeting or the withholding of information qualifies for exemption under 
Sec.  1632.5. Votes by proxy are not allowed.
    (b) Except as provided in paragraph (c) of this section, a separate 
vote of the Members of the Board will be taken with respect to the 
closing or the withholding of information as to each meeting or portion 
thereof which is proposed to be closed to public observation or with 
respect to which information is proposed to be withheld pursuant to this 
section.
    (c) A single vote may be taken with respect to a series of meetings, 
a portion or portions of which are proposed to be closed to public 
observation or with respect to any information concerning such series of 
meetings proposed to be withheld, so long as each meeting or portion 
thereof in such series involves the same particular matters and is 
scheduled to be held no more than thirty days after the initial meeting 
in such series.
    (d) Whenever any person's interests may be directly affected by a 
portion of the meeting for any of the reasons referred to in exemption 
(a)(5), (a)(6) or (a)(7) of Sec.  1632.5 of this part, such person may 
request in writing to the Secretary of the Board that such portion of 
the meeting be closed to public observation. The Secretary, or in his or 
her absence, the Acting Secretary of the Board, shall transmit the 
request to the members and upon the request of any one of them a 
recorded vote shall be taken whether to close such meeting to public 
observation.
    (e) Within one day of any vote taken pursuant to paragraphs (a) 
through (d) of this section, the agency will make publicly available at 
the Board's External Affairs Office a written copy of such vote 
reflecting the vote of each

[[Page 270]]

member on the question. If a meeting or a portion of a meeting is to be 
closed to public observation, the Board, within one day of the vote 
taken pursuant to paragraphs (a) through (d) of this section, will make 
publicly available at the Board's External Affairs Office a full written 
explanation of its action closing the meeting or portion of the meeting 
together with a list of all persons expected to attend the meeting and 
their affiliation, except to the extent such information is determined 
by the Board to be exempt from disclosure under subsection (c) of the 
Act and Sec.  1632.5 of this part.
    (f) Any person may request in writing to the Secretary of the Board 
that an announced closed meeting, or portion of the meeting, be held 
open to public observation. The Secretary, or in his or her absence, the 
Acting Secretary of the Board, will transmit the request to the members 
of the Board and upon the request of any member a recorded vote will be 
taken whether to open such meeting to public observation.



Sec.  1632.8  Changes with respect to publicly announced meetings.

    The subject matter of a meeting or the determination to open or 
close a meeting or a portion of a meeting to public observation may be 
changed following public announcement under Sec.  1632.6 only if a 
majority of the Members of the Board determines by a recorded vote that 
that agency business so requires and that no earlier announcement of the 
change was possible. Public announcement of such change and the vote of 
each member upon such change will be made pursuant to Sec.  1632.6(c). 
Changes in time, including postponements and cancellations of a publicly 
announced meeting or portion of a meeting or changes in the place of a 
publicly announced meeting will be publicly announced pursuant to Sec.  
1632.6(c) by the Secretary of the Board or, in the Secretary's absence, 
the Acting Secretary of the Board.



Sec.  1632.9  Certification of General Counsel.

    Before every meeting or portion of a meeting closed to public 
observation under Sec.  1632.7 of this part, the General Counsel, or in 
the General Counsel's absence, the Acting General Counsel, shall 
publicly certify whether or not in his or her opinion the meeting may be 
closed to public observation and shall state each relevant exemptive 
provision. A copy of such certification, together with a statement from 
the presiding officer of the meeting setting forth the time and place of 
the meeting and the persons present, will be retained for the time 
prescribed in Sec.  1632.10(d).



Sec.  1632.10  Transcripts, recordings, and minutes.

    (a) The Board will maintain a complete transcript or electronic 
recording or transcription thereof adequate to record fully the 
proceedings of each meeting or portion of a meeting closed to public 
observation pursuant to exemption (a)(1), (a)(2), (a)(3), (a)(5), 
(a)(6), (a)(7), or (a)(9)(ii) of Sec.  1632.5 of this part. 
Transcriptions of recordings will disclose the identity of each speaker.
    (b) The Board will maintain either such a transcript, recording or 
transcription thereof, or a set of minutes that will fully and clearly 
describe all matters discussed and provide a full and accurate summary 
of any actions taken and the reasons therefor, including a description 
of each of the views expressed on any item and the record of any roll 
call vote (reflecting the vote of each member on the question), for 
meetings or portions of meetings closed to public observation pursuant 
to exemptions (a)(8), (a)(9)(i)(A) or (a)(10) of Sec.  1632.5 of this 
part. The minutes will identify all documents considered in connection 
with any action taken.
    (c) Transcripts, recordings or transcriptions thereof, or minutes 
will promptly be made available to the public in the External Affairs 
Office except for such item or items of such discussion or testimony as 
may be determined to contain information that may be withheld under 
subsection (c) of the Act and Sec.  1632.5 of this part. These 
documents, disclosing the identity of each speaker, shall be furnished 
to any person at the actual cost of duplication or transcription.

[[Page 271]]

    (d) A complete verbatim copy of the transcript, a complete copy of 
the minutes, or a complete electronic recording or verbatim copy of a 
transcription thereof of each meeting or portion of a meeting closed to 
public observation will be maintained for a period of at least two 
years, or one year after the conclusion of any Board proceeding with 
respect to which the meeting or portion thereof was held, whichever 
occurs later.



Sec.  1632.11  Procedures for inspection and obtaining copies 
of transcriptions and minutes.

    (a) Any person may inspect or copy a transcript, a recording or 
transcription, or minutes described in Sec.  1632.10(c) of this part.
    (b) Requests for copies of transcripts, recordings or transcriptions 
of recordings, or minutes described in Sec.  1632.10(c) of this part 
shall specify the meeting or the portion of meeting desired and shall be 
submitted in writing to the Secretary of the Board, Federal Retirement 
Thrift Investment Board, 77 K Street, NE., Suite 1000, Washington, DC 
20002. Copies of documents identified in minutes may be made available 
to the public upon request under the provisions of 5 CFR part 1630 (the 
Board's Freedom of Information Act regulations).

[53 FR 36777, Sept. 22, 1988, as amended at 59 FR 55331, Nov. 7, 1994; 
77 FR 11384, Feb. 27, 2012]



PART 1633_STANDARDS OF CONDUCT--Table of Contents



    Authority: 5 U.S.C. 7301.



Sec.  1633.1  Cross-reference to employee ethical conduct standards 
and financial disclosure regulations.

    Employees of the Federal Retirement Thrift Investment Board (Board) 
are subject to the executive branch-wide Standards of Ethical conduct at 
5 CFR part 2635, the Board regulations at 5 CFR part 8601 which 
supplement the executive branch-wide standards, and the executive 
branch-wide financial disclosure regulations at 5 CFR part 2634.

[59 FR 50817, Oct. 6, 1994]



PART 1636_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP 
IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE FEDERAL RETIREMENT 
THRIFT INVESTMENT BOARD--Table of Contents



Sec.
1636.101 Purpose.
1636.102 Application.
1636.103 Definitions.
1636.104-1636.109 [Reserved]
1636.110 Self-evaluation.
1636.111 Notice.
1636.112-1636.129 [Reserved]
1636.130 General prohibitions against discrimination.
1636.131-1636.139 [Reserved]
1636.140 Employment.
1636.141-1636.148 [Reserved]
1636.149 Program accessibility: Discrimination prohibited.
1636.150 Program accessibility: Existing facilities.
1636.151 Program accessibility: New construction and alterations.
1636.152-1636.159 [Reserved]
1636.160 Communications.
1636.161-1636.169 [Reserved]
1636.170 Compliance procedures.
1636.171-1636.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 58 FR 57696, 57699, Oct. 26, 1993, unless otherwise noted.



Sec.  1636.101  Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec.  1636.102  Application.

    This part (Sec. Sec.  1636.101-1636.170) applies to all programs or 
activities conducted by the agency, except for programs or activities 
conducted outside the United States that do not involve individuals with 
handicaps in the United States.



Sec.  1636.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil

[[Page 272]]

Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TTD's), interpreters, notetakers, written 
materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Historic preservation programs means programs conducted by the 
agency that have preservation of historic properties as a primary 
purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Individual with handicaps means any person who has a physical or 
mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment. As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term ``physical or mental 
impairment'' includes, but is not limited to, such diseases and 
conditions as orthopedic, visual, speech, and hearing impairments, 
cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, 
cancer, heart disease, diabetes, mental retardation, emotional illness, 
HIV disease (whether symptomatic or asymptomatic), and drug addiction 
and alcoholism.
    (2) Major life activities include functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Qualified individual with handicaps means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with handicaps who is a 
member of a class of persons otherwise entitled by statute, regulation, 
or agency policy to receive education services from the agency;

[[Page 273]]

    (2) With respect to any other agency program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (3) With respect to any other program or activity, an individual 
with handicaps who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
    (4) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1614.203(a)(6), which is made 
applicable to this part by Sec.  1636.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended. As used in 
this part, section 504 applies only to programs or activities conducted 
by Executive agencies and not to federally assisted programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.



Sec. Sec.  1636.104-1636.109  [Reserved]



Sec.  1636.110  Self-evaluation.

    (a) The agency shall, by November 28, 1994, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including individuals with handicaps or organizations representing 
individuals with handicaps, to participate in the self-evaluation 
process by submitting comments (both oral and written).
    (c) The agency shall, for at least three years following completion 
of the self-evaluation, maintain on file and make available for public 
inspection:
    (1) A description of areas examined and any problems identified; and
    (2) A description of any modifications made.



Sec.  1636.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the head of the agency 
finds necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this part.



Sec. Sec.  1636.112-1636.129  [Reserved]



Sec.  1636.130  General prohibitions against discrimination.

    (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in according equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to provide 
qualified individuals with

[[Page 274]]

handicaps with aid, benefits, or services that are as effective as those 
provided to others;
    (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards;
    (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are no 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with handicaps from, deny them the benefits 
of, or otherwise subject them to discrimination under any program or 
activity conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
to discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licensees or certified 
entities that subject qualified individuals with handicaps to 
discrimination on the basis of handicap. However, the programs or 
activities of entities that are licensed or certified by the agency are 
not, themselves, covered by this part.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of individuals with handicaps is not prohibited by 
this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with handicaps.



Sec. Sec.  1636.131-1636.139  [Reserved]



Sec.  1636.140  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subjected to discrimination in employment under any program 
or activity conducted by the agency. The definitions, requirements, and 
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791), as established by the Equal Employment Opportunity Commission in 
29 CFR part 1614, shall apply to employment in federally conducted 
programs or activities.



Sec. Sec.  1636.141-1636.148  [Reserved]



Sec.  1636.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  1636.150, no qualified 
individual with handicaps shall, because the agency's facilities are 
inaccessible to or unusable by individuals with handicaps, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec.  1636.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by individuals with handicaps. This paragraph 
does not--

[[Page 275]]

    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps;
    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec.  1636.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that result in such an 
alteration or such burdens but would nevertheless ensure that 
individuals with handicaps receive the benefits and services of the 
program or activity.
    (b) Methods--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by individuals with handicaps. The agency is 
not required to make structural changes in existing facilities where 
other methods are effective in achieving compliance with this section. 
The agency, in making alterations to existing buildings, shall meet 
accessibility requirements to the extent compelled by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), and any 
regulations implementing it. In choosing among available methods for 
meeting the requirements of this section, the agency shall give priority 
to those methods that offer programs and activities to qualified 
individuals with handicaps in the most integrated setting appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec.  1636.150(a) in historic preservation programs, the agency shall 
give priority to methods that provide physical access to individuals 
with handicaps. In cases where a physical alteration to an historic 
property is not required because of Sec.  1636.150(a)(2) or (a)(3), 
alternative methods of achieving program accessibility include--
    (i) Using audio-visual materials and devices to depict those 
portions of an historic property that cannot otherwise be made 
accessible;
    (ii) Assigning persons to guide individuals with handicaps into or 
through portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by January 24, 1994, except 
that where structural changes in facilities are undertaken, such changes 
shall be made by November 26, 1996, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by May 26, 1994, a transition plan setting forth 
the steps necessary to complete such changes. The agency shall provide 
an opportunity to interested persons, including individuals with 
handicaps or organizations representing individuals with handicaps, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--

[[Page 276]]

    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to individuals 
with handicaps;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.



Sec.  1636.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with handicaps. The definitions, requirements, and standards 
of the Architectural Barriers Act (42 U.S.C. 4151-4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Sec. Sec.  1636.152-1636.159  [Reserved]



Sec.  1636.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with handicaps.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used to communicate 
with persons with impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec.  1636.160 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or her designee after considering all agency resources available for 
use in the funding and operation of the conducted program or activity 
and must be accompanied by a written statement of the reasons for 
reaching that conclusion. If an action required to comply with this 
section would result in such an alteration or such burdens, the agency 
shall take any other action that would not result in such an alteration 
or such burdens but would nevertheless ensure that, to the maximum 
extent possible, individuals with handicaps receive the benefits and 
services of the program or activity.



Sec. Sec.  1636.161-1636.169  [Reserved]



Sec.  1636.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs and activities conducted by the agency.

[[Page 277]]

    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1614 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Assistant General Counsel (Administration) shall be 
responsible for coordinating implementation of this section. Complaints 
may be sent to the Executive Director.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate Government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with handicaps.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec.  1636.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[58 FR 57696, 57699, Oct. 26, 1993, as amended at 58 FR 57697, Oct. 26, 
1993]



Sec. Sec.  1636.171-1636.999  [Reserved]



PART 1639_CLAIMS COLLECTION--Table of Contents



   Subpart A_Administrative Collection, Compromise, Termination, and 
                           Referral of Claims

Sec.
1639.1 Authority.
1639.2 Application of other regulations; scope.
1639.3 Application to other statutes.
1639.4 Definitions.
1639.5 Use of credit reporting agencies.
1639.6 Contracting for collection services.
1639.7 Initial notice to debtor.
1639.8 Interest, penalty, and administrative costs.
1639.9 Charges pending waiver or review.
1639.10 Referrals to the Department of Justice.
1639.11 Cross-servicing agreement with the Department of the Treasury.
1639.12 Deposit of funds collected.
1639.13 Antialienation of funds in Thrift Savings Plan participant 
          accounts.

                         Subpart B_Salary Offset

1639.20 Applicability and scope.
1639.21 Waiver requests.
1639.22 Notice requirements before offset.
1639.23 Hearing.
1639.24 Certification.
1639.25 Voluntary repayment agreements as alternative to salary offset.
1639.26 Special review.
1639.27 Procedures for salary offset.
1639.28 Coordinating salary offset with other agencies.
1639.29 Refunds.
1639.30 Non-waiver of rights by payments.

[[Page 278]]

                       Subpart C_Tax Refund Offset

1639.40 Applicability and scope.
1639.41 Procedures for tax refund offset.
1639.42 Notice requirements before tax refund offset.

                     Subpart D_Administrative Offset

1639.50 Applicability and scope.
1639.51 Notice procedures.
1639.52 Board review.
1639.53 Written agreement for repayment.
1639.54 Requests for offset to Federal agencies.
1639.55 Requests for offset from Federal agencies.
1639.56 Expedited procedure.

                Subpart E_Administrative Wage Garnishment

1639.60 Administrative wage garnishment.

    Authority: 5 U.S.C. 8474 and 31 U.S.C. 3711, 3716, 3720A, and 3720D.

    Source: 62 FR 49417, Sept. 22, 1997, unless otherwise noted.



   Subpart A_Administrative Collection, Compromise, Termination, and 
                           Referral of Claims



Sec.  1639.1  Authority.

    The regulations of this part are issued under 5 U.S.C. 8474 and 31 
U.S.C. 3711, 3716, 3720A, and 3720D.

[79 FR 22594, Apr. 23, 2014]



Sec.  1639.2  Application of other regulations; scope.

    All provisions of the Federal Claims Collection Standards, 4 CFR 
chapter II, apply to the regulations of this part. This part supplements 
4 CFR chapter II by the prescription of procedures and directives 
necessary and appropriate for operations of the Federal Retirement 
Thrift Investment Board. The Federal Claims Collection Standards and 
this part do not apply to any claim as to which there is an indication 
of fraud or misrepresentation, as described in 4 CFR 101.3, unless 
returned by the Department of Justice to the Board for handling.



Sec.  1639.3  Application to other statutes.

    (a) The Executive Director may exercise his or her compromise 
authority for those debts not exceeding $100,000, excluding interest, in 
conformity with the Federal Claims Collection Act of 1966, the Federal 
Claims Collection Standards issued thereunder, and this part, except 
where standards are established by other statutes or authorized 
regulations issued pursuant to them.
    (b) The authority of the Executive Director of the Board to remit or 
mitigate a fine, penalty, or forfeiture will be exercised in accordance 
with the standards for remission or mitigation established in the 
governing statute. In the absence of such standards, the Federal Claims 
Collection Standards will be followed to the extent applicable.



Sec.  1639.4  Definitions.

    As used in this part:
    Administrative offset, as defined in 31 U.S.C. 3701(a)(1), means 
withholding funds payable by the United States (including funds payable 
to the United States on behalf of a State government) to, or held by the 
United States for, a person to satisfy a debt owed to the United States.
    Agency means executive departments and agencies, the United States 
Postal Service, the Postal Rate Commission, the United States Senate, 
the United States House of Representatives, and any court, court 
administrative office, or instrumentality in the judicial or legislative 
branches of the Government, and Government corporations.
    Board means the Federal Retirement Thrift Investment Board, which 
administers the Thrift Savings Plan and the Thrift Savings Fund.
    Certification means a written debt claim form received from a 
creditor agency which requests the paying agency to offset the salary of 
an employee.
    Creditor agency means an agency of the Federal Government to which 
the debt is owed.
    Debt means money owed by an individual to the United States 
including a debt owed to the Thrift Savings Fund or to a Federal agency, 
but does not include a Thrift Savings Plan loan.
    Delinquent debt means a debt that has not been paid within the time 
limit prescribed by the Board.
    Disposable pay means that part of current basic pay, special pay, 
incentive pay, retirement pay, retainer pay,

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or, in the case of an employee not entitled to basic pay, other 
authorized pay remaining after the deduction of any amount required by 
law to be withheld, excluding any garnishment under 5 CFR parts 581, 
582. The Board will include the following deductions in determining 
disposable pay subject to salary offset:
    (1) Federal Social Security and Medicare taxes;
    (2) Federal, state, or local income taxes, but no more than would be 
the case if the employee claimed all dependents to which he or she is 
entitled and any additional amounts for which the employee presents 
evidence of a tax obligation supporting the additional withholding;
    (3) Health insurance premiums;
    (4) Normal retirement contributions as explained in 5 CFR 
581.105(e);
    (5) Normal life insurance premiums, excluding optional life 
insurance premiums; and
    (6) Levies pursuant to the Internal Revenue Code, as defined in 5 
U.S.C. 5514(d).
    Employee means a current employee of an agency, including a current 
member of the Armed Forces or Reserve of the Armed Forces of the United 
States.
    Executive Director means the Executive Director of the Federal 
Retirement Thrift Investment Board, or his or her designee.
    Federal Claims Collection Standards means the standards published at 
4 CFR chapter II.
    Hearing official means an individual responsible for conducting any 
hearing with respect to the existence or amount of a debt claimed, and 
rendering a decision on the basis of the hearing.
    Net Assets Available for Thrift Savings Plan Benefits means all 
funds owed to Thrift Savings Plan participants and beneficiaries.
    Notice of intent to offset or notice of intent means a written 
notice from a creditor agency to an employee which alleges that the 
employee owes a debt to the creditor agency and which apprises the 
employee of certain administrative rights.
    Notice of salary offset means a written notice from the paying 
agency to an employee informing the employee that it has received a 
certification from a creditor agency and intends to begin salary offset.
    Participant means any person with an account in the Thrift Savings 
Plan, or who would have an account but for an employing agency error.
    Paying agency means the agency of the Federal Government which 
employs the individual who owes a debt to the United States. In some 
cases, the Federal Retirement Thrift Investment Board may be both the 
creditor agency and the paying agency.
    Payroll office means the payroll office in the paying agency which 
is primarily responsible for the payroll records and the coordination of 
pay matters with the appropriate personnel office with respect to an 
employee.
    Person includes a natural person or persons, profit or non-profit 
corporation, partnership, association, trust, estate, consortium, State 
and local governments, or other entity that is capable of owing a debt 
to the United States Government; however, agencies of the United States, 
are excluded.
    Private collection contractor means a private debt collector under 
contract with an agency to collect a non-tax debt owed to the United 
States.
    Salary offset means an offset to collect a debt under 5 U.S.C. 5514 
by deduction(s) at one or more officially established pay intervals from 
the current pay account of an employee, without his or her consent.
    Tax refund offset means the reduction of a tax refund by the amount 
of a past-due legally enforceable debt owed to the Board or a Federal 
agency.
    Thrift Savings Fund means the Fund described in 5 U.S.C. 8437.
    Thrift Savings Plan means the Federal Retirement Thrift Savings Plan 
established by the Federal Employees' Retirement System Act of 1986, 
codified in pertinent part at 5 U.S.C. 8431 et seq..
    Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt allegedly owed by a person to the Board or a Federal 
agency as permitted or required by 5 U.S.C. 5584 or 8346(b), 10 U.S.C. 
2774, 32 U.S.C. 716, or any other law.

[[Page 280]]



Sec.  1639.5  Use of credit reporting agencies.

    (a) The Board may report delinquent debts to appropriate credit 
reporting agencies by providing the following information:
    (1) A statement that the debt is valid and is overdue;
    (2) The name, address, taxpayer identification number, and any other 
information necessary to establish the identity of the debtor;
    (3) The amount, status, and history of the debt; and
    (4) The program or pertinent activity under which the debt arose.
    (b) Before disclosing debt information to a credit reporting agency, 
the Board will:
    (1) Take reasonable action to locate the debtor if a current address 
is not available; and
    (2) If a current address is available, notify the debtor by 
certified mail, return receipt requested:
    (i) That a designated Board official has reviewed the claim and has 
determined that the claim is valid and over-due;
    (ii) That within 60 days the Board intends to disclose to a credit 
reporting agency the information authorized for disclosure by this 
section; and
    (iii) That the debtor can request an explanation of the claim, can 
dispute the information in the Board's records concerning the claim, and 
can file for an administrative review, waiver, or reconsideration of the 
claim, where applicable.
    (c) At the time debt information is submitted to a credit reporting 
agency, the Board will provide a written statement to the reporting 
agency that all required actions have been taken. In addition, the Board 
will, thereafter, ensure that the credit reporting agency is promptly 
informed of any substantive change in the conditions or amount of the 
debt, and promptly verify or correct information relevant to the claim.
    (d) If a debtor disputes the validity of the debt, the credit 
reporting agency will refer the matter to the appropriate Board 
official. The credit reporting agency will exclude the debt from its 
reports until the Board certifies in writing that the debt is valid.



Sec.  1639.6  Contracting for collection services.

    The Board will use the services of a private collection contractor 
where it determines that such use is in the best interest of the Board. 
When the Board determines that there is a need to contract for 
collection services, it will--
    (a) Retain sole authority to:
    (1) Resolve any dispute by the debtor regarding the validity of the 
debt;
    (2) Compromise the debt;
    (3) Suspend or terminate collection action;
    (4) Refer the debt to the Department of Justice for litigation; and
    (5) Take any other action under this part which does not result in 
full collection of the debt;
    (b) Require the contractor to comply with the Privacy Act of 1974, 
as amended, to the extent specified in 5 U.S.C. 552a(m), with applicable 
Federal and State laws pertaining to debt collection practices (e.g., 
the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.)), and 
with applicable regulations of the Board;
    (c) Require the contractor to account accurately and fully for all 
amounts collected; and
    (d) Require the contractor to provide to the Board, upon request, 
all data and reports contained in its files relating to its collection 
actions on a debt.



Sec.  1639.7  Initial notice to debtor.

    (a) When the Executive Director determines that a debt is owed the 
Board, he will send a written notice to the debtor. The notice will 
inform the debtor of the following:
    (1) The amount, nature, and basis of the debt;
    (2) That payment is due immediately after receipt of the notice;
    (3) That the debt is considered delinquent if it is not paid within 
30 days of the date the notice is mailed or hand-delivered;
    (4) That interest charges (except for State and local governments 
and Indian tribes), penalty charges, and admini strative costs may be 
assessed against a delinquent debt;
    (5) Any rights available to the debtor to dispute the validity of 
the debt or to

[[Page 281]]

have recovery of the debt waived (citing the available review or waiver 
authority, the conditions for review or waiver, and the effects of the 
review or waiver request on the collection of the debt); and
    (6) The address, telephone number, and name of the Board official 
available to discuss the debt.
    (b) The Board will respond promptly to communications from the 
debtor.
    (c) Subsequent demand letters also will notify the debtor of any 
interest, penalty, or administrative costs which have been assessed and 
will advise the debtor that the debt may be referred to a credit 
reporting agency (see Sec.  1639.5), a collection agency (see Sec.  
1639.6), the Department of Justice (see Sec.  1639.10), or the 
Department of the Treasury (see Sec.  1639.11), if it is not paid.



Sec.  1639.8  Interest, penalty, and administrative costs.

    (a) Interest. The Board will assess interest on all delinquent debts 
unless prohibited by statute, regulation, or contract.
    (1) Interest begins to accrue on all debts from the date the initial 
notice is mailed or hand-delivered to the debtor. The Board will not 
recover interest if the debt is paid within 30 days of the date of the 
initial notice. The Board will assess an annual rate of interest that is 
equal to the rate of the current value of funds to the United States 
Treasury (i.e., the Treasury tax and loan account rate) as prescribed 
and published by the Secretary of the Treasury in the Federal Register 
and the Treasury Fiscal Requirements Manual Bulletins, unless a 
different rate is necessary to protect the interests of the Board. The 
Board will notify the debtor of the basis for its finding when a 
different rate is necessary to protect the Board's interests.
    (2) The Executive Director may extend the 30-day period for payment 
where he determines that such action is in the best interest of the 
Board. A decision to extend or not to extend the payment period is final 
and is not subject to further review.
    (b) Penalty. The Board will assess a penalty charge, not to exceed 
six percent a year, on any portion of a debt that is not paid within 90 
days of the initial notice.
    (c) Administrative costs. The Board will assess charges to cover 
administrative costs incurred as the result of the debtor's failure to 
pay a debt within 30 days of the date of the initial notice. 
Administrative costs include the additional costs incurred in processing 
and handling the debt because it became delinquent, such as costs 
incurred in obtaining a credit report, or in using a private collection 
contractor, or service fees charged by a Federal agency for collection 
activities undertaken on behalf of the Board.
    (d) Allocation of payments. A partial payment by a debtor will be 
applied first to outstanding administrative costs, second to penalty 
assessments, third to accrued interest, and then to the outstanding debt 
principal.
    (e) Waiver. (1) The Executive Director may (without regard to the 
amount of the debt) waive collection of all or part of accrued interest, 
penalty, or administrative costs, if he determines that collection of 
these charges would be against equity and good conscience or not in the 
best interest of the Board.
    (2) A decision to waive interest, penalty charges, or administrative 
costs may be made at any time before a debt is paid. However, where 
these charges have been collected before the waiver decision, they will 
not be refunded. The Executive Director's decision to waive or not waive 
collection of these charges is final and is not subject to further 
review.



Sec.  1639.9  Charges pending waiver or review.

    Interest, penalty charges, and administrative costs will continue to 
accrue on a debt during administrative appeal, either formal or 
informal, and during waiver consideration by the Board, unless 
specifically prohibited by a statute or a regulation.



Sec.  1639.10  Referrals to the Department of Justice.

    The Executive Director will refer to the Department of Justice for 
litigation all claims on which aggressive collection actions have been 
taken but which could not be collected, compromised, suspended, or 
terminated.

[[Page 282]]

Referrals will be made as early as possible, consistent with aggressive 
Board collection action, and within the period for bringing a timely 
suit against the debtor.



Sec.  1639.11  Cross-servicing agreement with the Department of the Treasury.

    The Board will enter into a cross-servicing agreement with the 
Department of the Treasury which will authorize Treasury to take all of 
the debt collection actions described in this part. These debt 
collection services will be provided to the Board in accordance with 31 
U.S.C. 3701 et seq.



Sec.  1639.12  Deposit of funds collected.

    All funds owed to the Board and collected under this part will be 
deposited in the Thrift Savings Fund. Funds owed to other agencies and 
collected under this part will be credited to the account designated by 
the creditor agency for the receipt of the funds.



Sec.  1639.13  Antialienation of funds in Thrift Savings Plan 
participant accounts.

    In accordance with 5 U.S.C. 8437, net assets available for Thrift 
Savings Plan benefits will not be used to satisfy a debt owed by a 
participant to an agency under the regulations of this part or under the 
debt collection regulations of any agency.



                         Subpart B_Salary Offset



Sec.  1639.20  Applicability and scope.

    (a) The regulations in this subpart provide Board procedures for the 
collection by salary offset of a Federal employee's pay to satisfy 
certain debts owed to the Board or to Federal agencies.
    (b) The regulations in this subpart apply to collections by the 
Executive Director, from:
    (1) Federal employees who owe debts to the Board; and
    (2) Employees of the Board who owe debts to Federal agencies.
    (c) The regulations in this subpart do not apply to debts arising 
under the Internal Revenue Code of 1986, as amended (title 26, United 
States Code); the Social Security Act (42 U.S.C. 301 et seq.); the 
tariff laws of the United States; or to any case where collection of a 
debt by salary offset is explicitly provided for or prohibited by 
another statute (e.g., travel advances in 5 U.S.C. 5705 and employee 
training expenses in 5 U.S.C. 4108).
    (d) Nothing in the regulations in this subpart precludes the 
compromise, suspension, or termination of collection actions under the 
standards implementing the Federal Claims Collection Act (31 U.S.C. 3711 
et seq., 4 CFR Parts 101-105, 38 CFR 1.900-1.994).
    (e) A levy pursuant to the Internal Revenue Code takes precedence 
over a salary offset under this subpart, as provided in 5 U.S.C. 
5514(d).
    (f) This subpart does not apply to any adjustment to pay arising out 
of an employee's election of coverage or a change in coverage under a 
Federal benefits program requiring periodic deductions from pay, if the 
amount to be recovered was accumulated over four pay periods or less.



Sec.  1639.21  Waiver requests.

    The regulations in this subpart do not preclude an employee from 
requesting waiver of an overpayment under 5 U.S.C. 5584 or 8346(b), 10 
U.S.C. 2774, 32 U.S.C. 716, or under other statutory provisions 
pertaining to the particular debts being collected.



Sec.  1639.22  Notice requirements before offset.

    Deductions under the authority of 5 U.S.C. 5514 may be made if, a 
minimum of 30 calendar days before salary offset is initiated, the Board 
provides the employee with written notice that he or she owes a debt to 
the Board. This notice of intent to offset an employee's salary will be 
hand-delivered or sent by certified mail to the most current address 
that is available to the Board. The notice provided under this section 
will state:
    (a) That the Board has reviewed the records relating to the claim 
and has determined that a debt is owed, the amount of the debt, and the 
facts giving rise to the debt;
    (b) The Board's intention to collect the debt by deducting money 
from the

[[Page 283]]

employee's current disposable pay account until the debt, and all 
accumulated interest, penalties, and administrative costs, is paid in 
full;
    (c) The amount, frequency, approximate beginning date, and duration 
of the intended deductions;
    (d) An explanation of the Board's policy concerning interest, 
penalties, and administrative costs, including a statement that such 
assessments must be made unless excused in accordance with the Federal 
Claims Collection Standards, 4 CFR chapter II;
    (e) The employee's right to inspect and copy all records pertaining 
to the debt claimed or to receive copies of those records if personal 
inspection is impractical;
    (f) The right to a hearing conducted by an administrative law judge 
or other impartial hearing official (i.e., a hearing official not under 
the supervision or control of the Executive Director), with respect to 
the existence and amount of the debt claimed or the repayment schedule 
(i.e., the percentage of disposable pay to be deducted each pay period), 
so long as a request is filed by the employee as prescribed in Sec.  
1639.23;
    (g) If not previously provided, the opportunity (under terms 
agreeable to the Board) to establish a schedule for the voluntary 
repayment of the debt or to enter into a written agreement to establish 
a schedule for repayment of the debt in lieu of offset. The agreement 
must be in writing and signed by both the employee and the Executive 
Director;
    (h) The name, address, and telephone number of an officer or 
employee of the Board who may be contacted concerning procedures for 
requesting a hearing;
    (i) The method and time period for requesting a hearing;
    (j) That the timely filing of a request for a hearing on or before 
the 15th calendar day following receipt of the notice of intent will 
stay the commencement of collection proceedings;
    (k) The name and address of the officer or employee of the Board to 
whom the request for a hearing should be sent;
    (l) That the Board will initiate certification procedures to 
implement a salary offset, as appropriate, (which may not exceed 15 
percent of the employee's disposable pay) not less than 30 days from the 
date the employee receives the notice of debt, unless the employee files 
a timely request for a hearing;
    (m) That a final decision on the hearing (if one is requested) will 
be issued at the earliest practical date, but not later than 60 days 
after the filing of the petition requesting the hearing, unless the 
employee requests and the hearing official grants a delay in the 
proceedings;
    (n) That any knowingly false or frivolous statements, 
representations, or evidence may subject the employee to:
    (1) Disciplinary procedures appropriate under 5 U.S.C. chapter 75, 5 
CFR part 752, or any other applicable statute or regulations;
    (2) Penalties under the False Claims Act, 31 U.S.C. 3729-3733, or 
any other applicable statutory authority; and
    (3) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 102, or 
any other applicable statutory authority;
    (o) Any other rights and remedies available to the employee under 
statutes or regulations governing the program for which the collection 
is being made;
    (p) That unless there are applicable contractual or statutory 
provisions to the contrary, amounts paid on or deducted for the debt 
which are later waived or found not owed will be promptly refunded to 
the employee; and
    (q) That proceedings with respect to the debt are governed by 5 
U.S.C. 5514.



Sec.  1639.23  Hearing.

    (a) Request for hearing. Except as provided in paragraph (b) of this 
section, an employee who desires a hearing concerning the existence or 
amount of the debt or the proposed offset schedule must send such a 
request to the Board office designated in the notice of intent. See 
Sec.  1639.22(k).
    (1) The request for hearing must be signed by the employee and fully 
identify and explain with reasonable specificity all the facts, 
evidence, and witnesses, if any, that support his or her position.

[[Page 284]]

    (2) The request for hearing must be received by the designated 
office on or before the 15th calendar day following the employee's 
receipt of the notice. Timely filing will stay the commencement of 
collection procedures.
    (3) The employee must also specify whether an oral or written 
hearing is requested. If an oral hearing is desired, the request should 
explain why the matter cannot be resolved by review of the documentary 
evidence alone.
    (b) Failure to timely submit. (1) If the employee files a request 
for a hearing after the expiration of the 15th calendar day period 
provided for in paragraph (a) of this section, the Board will accept the 
request if the employee can show that the delay was the result of 
circumstances beyond his or her control or because of a failure to 
receive notice of the filing deadline (unless the employee had actual 
notice of the filing deadline).
    (2) An employee waives the right to a hearing, and will have his or 
her disposable pay offset in accordance with the Board's offset 
schedule, if the employee:
    (i) Fails to file a request for a hearing and the failure is not 
excused; or
    (ii) Fails to appear at an oral hearing of which he or she was 
notified and the hearing official does not determine that failure to 
appear was due to circumstances beyond the employee's control.
    (c) Representation at the hearing. The creditor agency may be 
represented by legal counsel. The employee may represent himself or 
herself or may be represented by an individual of his or her choice and 
at his or her own expense.
    (d) Review of Board records related to the debt. (1) In accordance 
with Sec.  1639.22(e), an employee who intends to inspect or copy Board 
records related to the debt must send a letter to the official 
designated in the notice of intent to offset stating his or her 
intention. The letter must be received within 15 calendar days after the 
employee's receipt of the notice.
    (2) In response to a timely request submitted by the debtor, the 
designated official will notify the employee of the location and time 
when the employee may inspect and copy records related to the debt.
    (3) If personal inspection is impractical, arrangements will be made 
to send copies of those records to the employee.
    (e) Hearing official. The Board may request an administrative law 
judge to conduct the hearing or the Board may obtain a hearing official 
who is not under the supervision or control of the Executive Director.
    (f) Procedure--(1) General. After the employee requests a hearing, 
the hearing official will notify the employee of the form of the hearing 
to be provided. If the hearing will be oral, the notice will set forth 
the date, time, and location of the hearing. If the hearing will be 
written, the employee will be notified that he or she should submit 
arguments in writing to the hearing official by a specified date after 
which the record will be closed. This date will give the employee 
reasonable time to submit documentation.
    (2) Oral hearing. An employee who requests an oral hearing will be 
provided an oral hearing, if the hearing official determines that the 
matter cannot be resolved by review of documentary evidence alone (e.g., 
when an issue of credibility is involved). The hearing is not an 
adversarial adjudication and need not take the form of an evidentiary 
hearing. Witnesses who testify in oral hearings will do so under oath or 
affirmation. Oral hearings may take the form of, but are not limited to:
    (i) Informal conferences with the hearing official, in which the 
employee and agency representative will be given full opportunity to 
present evidence, witnesses, and argument;
    (ii) Informal meetings with an interview of the employee; or
    (iii) Formal written submissions, with an opportunity for oral 
presentation.
    (3) Record determination. If the hearing official determines that an 
oral hearing is not necessary, he or she will make the determination 
based upon a review of the available written record.
    (4) Record. The hearing official must maintain a summary record of 
any hearing provided by this subpart.
    (g) Date of decision. The hearing official will issue a written 
decision, based

[[Page 285]]

upon documentary evidence and information developed at the hearing, as 
soon as practical after the hearing, but not later than 60 days after 
the date on which the petition was received by the creditor agency, 
unless the employee requests a delay in the proceedings. In that case, 
the 60 day decision period will be extended by the number of days by 
which the hearing was postponed.
    (h) Content of decision. The written decision will include:
    (1) A statement of the facts presented to support the origin, 
nature, and amount of the debt;
    (2) The hearing official's findings, analysis, and conclusions; and
    (3) The terms of any repayment schedules, if applicable.
    (i) Failure to appear. (1) In the absence of good cause shown (e.g., 
excused illness), an employee who fails to appear at a hearing will be 
deemed, for the purpose of this subpart, to admit the existence and 
amount of the debt as described in the notice of intent.
    (2) If the representative of the creditor agency fails to appear, 
the hearing official will proceed with the hearing as scheduled, and 
make his or her determination based upon the oral testimony presented by 
the representative(s) of the employee and the documentary documentation 
submitted by both parties.
    (3) At the request of both parties, the hearing official will 
schedule a new hearing date. Both parties will be given reasonable 
notice of the time and place of this new hearing.



Sec.  1639.24  Certification.

    (a) The Board will provide a certification to the paying agency in 
all cases in which:
    (1) The hearing official determines that a debt exists;
    (2) The employee admits the existence and amount of the debt by 
failing to request a hearing; or
    (3) The employee admits the existence of the debt by failing to 
appear at a hearing.
    (b) The certification must be in writing and must include:
    (1) A statement that the employee owes the debt;
    (2) The amount and basis of the debt;
    (3) The date the Board's right to collect the debt first accrued;
    (4) A statement that the Board's regulations have been approved by 
the Office of Personnel Management under 5 CFR part 550, subpart K;
    (5) The amount and date of the collection, if only a one-time offset 
is required;
    (6) If the collection is to be made in installments, the number of 
installments to be collected, the amount of each installment, and the 
date of the first installment, if a date other than the next officially 
established pay period is required; and
    (7) Information regarding the completion of procedures required by 5 
U.S.C. 5514, including the dates of notices and hearings provided to the 
employee, or, if applicable, the employee's signed consent to salary 
offset or a signed statement acknowledging receipt of required 
procedures.



Sec.  1639.25  Voluntary repayment agreements as alternative to salary offset.

    (a) In response to a notice of intent to offset against an 
employee's salary to recover a debt owed to the Board, an employee may 
propose to the Board that he or she be allowed to repay the debt through 
direct payments as an alternative to salary offset. Any employee who 
wishes to repay a debt without salary offset must submit in writing a 
proposed agreement to repay the debt. The proposal must admit the 
existence of the debt and set forth a proposed repayment schedule. The 
employee's proposal must be received by the official designated in the 
notice of intent within 15 calendar days after the employee received the 
notice.
    (b) In response to a timely proposal by the debtor, the Executive 
Director will notify the employee whether the employee's proposed 
written agreement for repayment is acceptable. It is within the 
Executive Director's discretion to accept a repayment agreement instead 
of proceeding by salary offset.
    (c) If the Executive Director decides that the proposed repayment 
agreement is unacceptable, the employee will have 15 days from the date 
he or she received notice of the decision to file a petition for a 
hearing.

[[Page 286]]

    (d) If the Executive Director decides that the proposed repayment 
agreement is acceptable, the alternative arrange ment must be in writing 
and signed by both the employee and the Executive Director.



Sec.  1639.26  Special review.

    (a) An employee subject to salary offset or a voluntary repayment 
agreement in connection with a debt owed to the Board may, at any time, 
request that the Board conduct a special review of the amount of the 
salary offset or voluntary payment, based on materially changed 
circumstances, such as catastrophic illness, divorce, death, or 
disability.
    (b) To assist the Board in determining whether an offset would 
prevent the employee from meeting essential subsistence expenses (costs 
incurred for food, housing, clothing, transportation, and medical care), 
the employee will submit a detailed statement and supporting documents 
for the employee, his or her spouse, and dependents, indicating:
    (1) Income from all sources;
    (2) Assets;
    (3) Liabilities;
    (4) Number of dependents;
    (5) Expenses for food, housing, clothing, and transportation;
    (6) Medical expenses; and
    (7) Exceptional expenses, if any.
    (c) If the employee requests a special review under this section, 
the employee must file an alternative proposed salary offset or payment 
schedule and a statement, with supporting documents, showing why the 
current salary offset or payments result in an extreme financial 
hardship to the employee.
    (d) The Executive Director will evaluate the statement and 
supporting documents, and determine whether the original offset or 
repayment schedule imposes an extreme financial hardship on the 
employee. The Executive Director will notify the employee in writing of 
his determination, including, if appropriate, a revised offset or 
payment schedule.
    (e) If the special review results in a revised offset or repayment 
schedule, the Board will provide a new certification to the paying 
agency.



Sec.  1639.27  Procedures for salary offset.

    (a) The Board will coordinate salary deductions under this subpart.
    (b) The Board's payroll office will determine the amount of an 
employee's disposable pay and will implement the salary offset.
    (c) Deductions will begin within three official pay periods 
following receipt by the Board's payroll office of certification for the 
creditor agency.
    (d) Types of collection--
    (1) Lump-sum offset. If the amount of the debt is equal to or less 
than 15 percent of disposable pay, the debt generally will be collected 
through one lump-sum offset.
    (2) Installment deductions. Installment deductions will be made over 
a period not greater than the anticipated period of employment. The size 
and frequency of installment deductions will bear a reasonable relation 
to the size of the debt and the employee's ability to pay. However, the 
amount deducted from any period will not exceed 15 percent of the 
disposable pay from which the deduction is made unless the employee has 
agreed in writing to the deduction of a greater amount.
    (3) Deductions from final check. A deduction exceeding the 15 
percent disposable pay limitation may be made from any final salary 
payment under 31 U.S.C. 3716 and the Federal Claims Collection 
Standards, 4 CFR chapter II, in order to liquidate the debt, whether the 
employee is being separated voluntarily or involuntarily.
    (4) Deductions from other sources. If an employee subject to salary 
offset is separated from the Board, and the balance of the debt cannot 
be liquidated by offset of the final salary check, the Board may offset 
any later payments of any kind against the balance of the debt, as 
allowed by 31 U.S.C. 3716 and the Federal Claims Collection Standards, 4 
CFR chapter II.
    (e) Multiple debts. In instances where two or more creditor agencies 
are seeking salary offsets, or where two or more debts are owed to a 
single creditor agency, the Board's payroll office may, at its 
discretion, determine whether one or more debts should be offset 
simultaneously within the 15 percent limitation.

[[Page 287]]

    (f) Precedence of debts owed to the Board. For Board employees, 
debts owed to the Board generally take precedence over debts owed to 
other agencies. In the event that a debt to the Board is certified while 
an employee is subject to a salary offset to repay another agency, the 
Board may decide whether to have the first debt repaid in full before 
collecting the claim or whether changes should be made in the salary 
deduction being sent to the other agency. If debts owed the Board can be 
collected in one pay period, the Board payroll office may suspend the 
salary offset to the other agency for that pay period in order to 
liquidate the debt to the Board. When an employee owes two or more 
debts, the best interests of the Board will be the primary con 
sideration in the payroll office's determination of the order in which 
the debts should be collected.



Sec.  1639.28  Coordinating salary offset with other agencies.

    (a) Responsibility of the Board as the creditor agency. (1) The 
Board will coordinate debt collections with other agencies and will, as 
appropriate:
    (i) Arrange for a hearing or special review upon proper petitioning 
by the debtor; and
    (ii) Prescribe, upon consultation with the General Counsel, the 
additional practices and procedures that may be necessary to carry out 
the intent of this subpart.
    (2) The Board will ensure:
    (i) That each notice of intent to offset is consistent with the 
requirements of Sec.  1639.22;
    (ii) That each certification of debt that is sent to a paying agency 
is consistent with the requirements of Sec.  1639.24; and
    (iii) That hearings are properly scheduled.
    (3) Requesting recovery from current paying agency. Upon completion 
of the procedures established in these regulations and pursuant to 5 
U.S.C. 5514, the Board will provide the paying agency with a 
certification as provided in Sec.  1639.24.
    (4) If the employee is in the process of separating and has not 
received a final salary check or other final payment(s) from the paying 
agency, the Board must submit a debt claim to the paying agency for 
collection under 31 U.S.C. 3716. The paying agency must certify the 
total amount of its collection on the debt and notify the employee and 
the Board. If the paying agency's collection does not fully satisfy the 
debt, and the paying agency is aware that the debtor is entitled to 
payments from the Civil Service Retirement and Disability Fund or other 
similar payments that may be due the debtor employee from other Federal 
Government sources, the paying agency will provide written notice of the 
outstanding debt to the agency responsible for making the other payments 
to the debtor employee. The written notice will state that the employee 
owes a debt, the amount of the debt, and that the provisions of this 
section have been fully complied with. The Board must submit a properly 
certified claim to the agency responsible for making the payments before 
the collection can be made.
    (5) Separated employee. If the employee is already separated and all 
payments due from his or her former paying agency have been paid, the 
Board may request, unless otherwise prohibited, that money due and 
payable to the employee from the Civil Service Retirement and Disability 
Fund (5 CFR part 831, subpart R, or 5 CFR part 845, subpart D) or other 
similar funds, be administratively offset to collect the debt.
    (6) Employee transfer. When an employee transfers from one paying 
agency to another paying agency, the Board will not repeat the due 
process procedures described in 5 U.S.C. 5514 and this subpart to resume 
the collection. The Board will submit a properly certified claim to the 
new paying agency and will subsequently review the debt to make sure the 
collection is resumed by the new paying agency.
    (b) Responsibility of the Board as the paying agency--(1) Complete 
claim. When the Board receives a certified claim from a creditor agency, 
deductions should be scheduled to begin within three officially 
established pay intervals. Before deductions can begin, the employee 
will receive a written notice from the Board including:

[[Page 288]]

    (i) A statement that the Board has received a certified debt claim 
from the creditor agency;
    (ii) The amount of the debt claim;
    (iii) The date salary offset deductions will begin, and
    (iv) The amount of such deductions.
    (2) Incomplete claim. When the Board receives an incomplete 
certification of debt from a creditor agency, the Board will return the 
debt claim with a notice that procedures under 5 U.S.C. 5514 and 5 CFR 
part 550, subpart K, must be followed and a properly certified debt 
claim received before action will be taken to collect from the 
employee's current pay account.
    (3) Review. The Board is not authorized to review the merits of the 
creditor agency's determination with respect to the amount or validity 
of the debt certified by the creditor agency.
    (4) Employees who transfer from one paying agency to another. If, 
after the creditor agency has submitted the debt claim to the Board, the 
employee transfers from the Board to a different paying agency before 
the debt is collected in full, the Board will certify the total amount 
collected on the debt and notify the employee and the creditor agency in 
writing. The notification to the creditor agency will include 
information on the employee's transfer.



Sec.  1639.29  Refunds.

    (a) If the Board is the creditor agency, it will promptly refund any 
amount deducted under the authority of 5 U.S.C. 5514, when:
    (1) The debt is waived or all or part of the funds deducted are 
otherwise found not to be owed; or
    (2) An administrative or judicial order directs the Board to make a 
refund.
    (b) Unless required or permitted by law or contract, refunds under 
this section will not bear interest.



Sec.  1639.30  Non-waiver of rights by payments.

    An employee's involuntary payment of all or any portion of a debt 
being collected under this subpart must not be construed as a waiver of 
any rights which the employee may have under 5 U.S.C. 5514 or any other 
provisions of a written contract or law, unless there are statutory or 
con tractual provisions to the contrary.



                       Subpart C_Tax Refund Offset



Sec.  1639.40  Applicability and scope.

    (a) The regulations in this subpart implement 31 U.S.C. 3720A which 
authorizes the Department of the Treasury to reduce a tax refund by the 
amount of a past-due legally enforceable debt owed to a Federal agency.
    (b) For purposes of this section, a past-due legally enforceable 
debt referable to the Department of the Treasury is a debt that is owed 
to the Board; and:
    (1) Is at least $25.00 dollars;
    (2) Except in the case of a judgment debt, has been delinquent for 
at least three months and will not have been delinquent more than 10 
years at the time the offset is made;
    (3) Cannot be currently collected under the salary offset provisions 
of 5 U.S.C. 5514;
    (4) Is ineligible for administrative offset under 31 U.S.C. 3716(a) 
by reason of 31 U.S.C. 3716(c)(2) or cannot be collected by 
administrative offset under 31 U.S.C. 3716(a) by the Board against 
amounts payable to the debtor by the Board;
    (5) With respect to which the Board has given the debtor at least 60 
days to present evidence that all or part of the debt is not past due or 
legally enforceable, has considered evidence presented by the debtor, 
and has determined that an amount of the debt is past due and legally 
enforceable;
    (6) Which has been disclosed by the Board to a credit reporting 
agency as authorized by 31 U.S.C. 3711(e), unless the credit reporting 
agency would be prohibited from reporting information concerning the 
debt by reason of 15 U.S.C. 1681c;
    (7) With respect to which the Board has notified or has made a 
reasonable attempt to notify the debtor that:
    (i) The debt is past due, and
    (ii) Unless repaid within 60 days thereafter, the debt will be 
referred to the Department of the Treasury for offset against any 
overpayment of tax; and
    (8) All other requirements of 31 U.S.C. 3720A and the Department of

[[Page 289]]

Treasury regulations relating to the eligibility of a debt for tax 
return offset have been satisfied.



Sec.  1639.41  Procedures for tax refund offset.

    (a) The Board will be the point of contact with the Department of 
the Treasury for administrative matters regarding the offset program.
    (b) The Board will ensure that the procedures prescribed by the 
Department of the Treasury are followed in developing information about 
past-due debts and submitting the debts to the IRS.
    (c) The Board will submit a notification of a taxpayer's liability 
for past-due legally enforceable debt to the Department of the Treasury 
which will contain:
    (1) The name and taxpayer identifying number (as defined in section 
6109 of the Internal Revenue Code, 26 U.S.C. 6109) of the person who is 
responsible for the debt;
    (2) The dollar amount of the past-due and legally enforceable debt;
    (3) The date on which the original debt became past due;
    (4) A statement certifying that, with respect to each debt reported, 
all of the requirements of eligibility of the debt for referral for the 
refund offset have been satisfied. See Sec.  1639.40(b).
    (d) The Board shall promptly notify the Department of the Treasury 
to correct Board data submitted when it:
    (1) Determines that an error has been made with respect to a debt 
that has been referred;
    (2) Receives or credits a payment on the debt; or
    (3) Receives notice that the person owing the debt has filed for 
bankruptcy under Title 11 of the United States Code or has been 
adjudicated bankrupt and the debt has been discharged.
    (e) When advising debtors of an intent to refer a debt to the 
Department of the Treasury for offset, the Board will also advise the 
debtors of all remedial actions available to defer or prevent the offset 
from taking place.



Sec.  1639.42  Notice requirements before tax refund offset.

    (a) The Board must notify, or make a reasonable attempt to notify, 
the person:
    (1) The amount of the debt and that the debt is past due; and
    (2) Unless repaid within 60 days, the debt will be referred to the 
Department of the Treasury for offset against any refund of overpayment 
of tax.
    (b) The Board will provide a mailing address for forwarding any 
written correspondence and a contact name and telephone number for any 
questions concerning the offset.
    (c) The Board will give the individual debtor at least 60 days from 
the date of the notice to present evidence that all or part of the debt 
is not past due or legally enforceable. The Board will consider the 
evidence presented by the individual and will make a determination 
whether any amount of the debt is past due and legally enforceable. For 
purposes of this section, evidence that collection of the debt is 
affected by a bankruptcy proceeding involving the individual will bar 
referral of the debt to the Department of the Treasury.
    (d) Notice given to a debtor under paragraphs (a), (b), and (c) of 
this section shall advise the debtor of how he or she may present 
evidence to the Board that all or part of the debt is not past due or 
legally enforceable. Such evidence may not be referred to, or considered 
by, individuals who are not officials, employees, or agents of the 
United States in making the determination required under paragraph (c) 
of this section. Unless such evidence is directly considered by an 
official or employee of the Board, and the determination required under 
paragraph (c) of this section has been made by an official or employee 
of the Board, any unresolved dispute with the debtor regarding whether 
all or part of the debt is past due or legally enforceable must be 
referred to the Board for ultimate administrative disposition, and the 
Board must directly notify the debtor of its determination.

[[Page 290]]



                     Subpart D_Administrative Offset



Sec.  1639.50  Applicability and scope.

    (a) The regulations in this subpart apply to the collection of debts 
owed to the Board, or from a request for an offset received by the Board 
from a Federal agency. Administrative offset is authorized under section 
5 of the Federal Claims Collection Act of 1966, as amended by the Debt 
Collection Act of 1982 (31 U.S.C. 3716). The regulations in this subpart 
are consistent with the Federal Claims Collection Standards on 
administrative offset issued jointly by the Department of Justice and 
the General Accounting Office as set forth in 4 CFR 102.3.
    (b) The Executive Director, after attempting to collect a debt owed 
to the Board under section 3(a) of the Federal Claims Collection Act of 
1966, as amended (31 U.S.C. 3711(a)), may collect the debt by 
administrative offset, subject to the following:
    (1) The debt is certain in amount; and
    (2) It is in the best interest of the Board to collect the debt by 
administrative offset because of the decreased costs of collection and 
acceleration in the payment of the debt.
    (c) The Executive Director may initiate administrative offset with 
regard to debts owed by a person to a Federal agency, so long as the 
funds to be offset are not payable from net assets available for Thrift 
Savings Plan benefits. The head of the creditor agency, or his or her 
designee, must submit a written request for the offset with a 
certification that the debt exists and that the person has been afforded 
the necessary due process rights.
    (d) The Executive Director may request another agency that holds 
funds payable to a Fund debtor to pay the funds to the Board in 
settlement of the debt. The Board will provide certification that:
    (1) The debt exists; and
    (2) The person has been afforded the necessary due process rights.
    (e) If the six-year period for bringing action on a debt provided in 
28 U.S.C. 2415 has expired, then administrative offset may be used to 
collect the debt only if the costs of bringing such an action are likely 
to be less than the amount of the debt.
    (f) No collection by administrative offset will be made on any debt 
that has been outstanding for more than 10 years unless facts material 
to the Board or a Federal agency's right to collect the debt were not 
known, and reasonably could not have been known, by the official or 
officials responsible for discovering and collecting the debt.
    (g) The regulations in this subpart do not apply to:
    (1) A case in which administrative offset of the type of debt 
involved is explicitly provided for or prohibited by another statute; or
    (2) Debts owed to the Board by Federal agencies or by any State or 
local government.



Sec.  1639.51  Notice procedures.

    Before collecting any debt through administrative offset, the Board 
will send a notice of intent to offset to the debtor by certified mail, 
return receipt requested, at the most current address that is available 
to the Board. The notice will provide:
    (a) A description of the nature and amount of the debt and the 
intention of the Board to collect the debt through administrative 
offset;
    (b) An opportunity to inspect and copy the records of the Board with 
respect to the debt;
    (c) An opportunity for review within the Board of the determination 
of the Board with respect to the debt; and
    (d) An opportunity to enter into a written agreement for repaying 
the amount of the debt.



Sec.  1639.52  Board review.

    (a) A debtor may dispute the existence of the debt, the amount of 
debt, or the terms of repayment. A request to review a disputed debt 
must be submitted to the Board official who provided the notice of 
intent to offset within 30 calendar days of the debtor's receipt of the 
written notice described in Sec.  1639.51.
    (b) If the debtor requests an opportunity to inspect or copy the 
Board's records concerning the disputed claim, the Board will grant 10 
business days for the review. The time period will be measured from the 
time the request for inspection is granted or from the time

[[Page 291]]

the debtor receives a copy of the records.
    (c) Pending the resolution of a dispute by the debtor, transactions 
in any of the debtor's account(s) maintained in the Board may be 
temporarily suspended to the extent of the debt that is owed. Depending 
on the type of transaction, the suspension could preclude its payment, 
removal, or transfer, as well as prevent the payment of interest or 
discount due on the transaction. Should the dispute be resolved in the 
debtor's favor, the suspension will be immediately lifted.
    (d) During the review period, interest, penalties, and 
administrative costs authorized by law will continue to accrue.
    (e) If the debtor does not exercise the right to request a review 
within the time specified in this section or if, as a result of the 
review, it is determined that the debt is due and no written agreement 
is executed, then administrative offset will be ordered in accordance 
with the regulations in this subpart without further notice.



Sec.  1639.53  Written agreement for repayment.

    A debtor who admits liability but elects not to have the debt 
collected by administrative offset will be afforded an opportunity to 
negotiate a written agreement for repaying the debt. If the financial 
condition of the debtor does not support the ability to pay in one lump 
sum, the Board may consider reasonable installments. No installment 
arrangement will be considered unless the debtor submits a financial 
statement, executed under penalty of perjury, reflecting the debtor's 
assets, liabilities, income, and expenses. The financial statement must 
be submitted within 10 business days of the Board's request for the 
statement. At the Board's option, a confess-judgment note or bond of 
indemnity with surety may be required for installment agreements. 
Notwithstanding the provisions of this section, any reduction or 
compromise of a claim will be governed by 31 U.S.C. 3711.



Sec.  1639.54  Requests for offset to Federal agencies.

    The Executive Director may request that funds due and payable to a 
debtor by another Federal agency be paid to the Board in payment of a 
debt owed to the Board by that debtor. In requesting administrative 
offset, the Board, as creditor, will certify in writing to the Federal 
agency holding funds of the debtor:
    (a) That the debtor owes the debt;
    (b) The amount and basis of the debt; and
    (c) That the Board has complied with the requirements of 31 U.S.C. 
3716, its own administrative offset regulations in this subpart, and the 
applicable provisions of 4 CFR part 102 with respect to providing the 
debtor with due process.



Sec.  1639.55  Requests for offset from Federal agencies.

    Any Federal agency may request that funds due and payable to its 
debtor by the Board be administratively offset in order to collect a 
debt owed to that agency by the debtor, so long as the funds are not 
payable from net assets available for Thrift Savings Plan benefits. The 
Board will initiate the requested offset only:
    (a) Upon receipt of written certification from the creditor agency 
stating:
    (1) That the debtor owes the debt;
    (2) The amount and basis of the debt;
    (3) That the agency has prescribed regulations for the exercise of 
administrative offset; and
    (4) That the agency has complied with its own administrative offset 
regulations and with the applicable provisions of 4 CFR part 102, 
including providing any required hearing or review; and
    (b) Upon a determination by the Board that collection by offset 
against funds payable by the Board would be in the best interest of the 
United States as determined by the facts and circumstances of the 
particular case, and that such an offset would not otherwise be contrary 
to law.



Sec.  1639.56  Expedited procedure.

    The Board may effect an administrative offset against a payment to 
be

[[Page 292]]

made to the debtor before completion of the procedures required by 
Sec. Sec.  1639.51 and 1639.52 if failure to take the offset would 
substantially jeopardize the Board's ability to collect the debt and the 
time before the payment is to be made does not reasonably permit the 
completion of those procedures. An expedited offset will be promptly 
followed by the completion of those procedures. Amounts recovered by 
offset, but later found not to be owed to the Board, will be promptly 
refunded.



                Subpart E_Administrative Wage Garnishment

    Source: 79 FR 22594, Apr. 23, 2014, unless otherwise noted.



Sec.  1639.60  Administrative wage garnishment.

    (a) General. The Board may use administrative wage garnishment to 
collect debts from non-Federal employees in accordance with the 
requirements of 31 U.S.C. 3720D and 31 CFR 285.11. This subpart adopts 
and incorporates all of the provisions of 31 CFR 285.11 concerning 
administrative wage garnishment, including the hearing procedures 
described in 31 CFR 285.11(f). This section does not apply to collection 
of debt by Federal salary offset, under 5 U.S.C. 5514, the process by 
which the Board collects debts from the salaries of Federal employees.
    (b) [Reserved]



PART 1640_PERIODIC PARTICIPANT STATEMENTS--Table of Contents



Sec.
1640.1 Definitions.
1640.2 Information regarding account.
1640.3 Statement of individual account.
1640.4 Account transactions.
1640.5 TSP Fund information.
1640.6 Methods of providing information.

    Authority: 5 U.S.C. 8439(c)(1) and (c)(2), 5 U.S.C. 8474(b)(5) and 
(c)(1).

    Source: 68 FR 35501, June 13, 2003, unless otherwise noted.



Sec.  1640.1  Definitions.

    Definitions generally applicable to the Thrift Savings Plan are set 
forth at 5 CFR 1690.1.



Sec.  1640.2  Information regarding account.

    The Board will provide to each participant four (4) times each 
calendar year the information described in Sec. Sec.  1640.3, 1640.4, 
and 1640.5. Plan participants can obtain account balance information on 
a more frequent basis from the TSP Web site and the ThriftLine.



Sec.  1640.3  Statement of individual account.

    In the quarterly statements, the Board will furnish each participant 
with the following information concerning the participant's individual 
account:
    (a) Name, account number, and date of birth under which the account 
is established;
    (b) Retirement system coverage and employment status of the 
participant, as provided by the employing agency;
    (c) Statement whether the participant has a beneficiary designation 
on file with the TSP record keeper;
    (d) Contribution allocation that is current at the end of the 
statement period;
    (e) Beginning and ending dates of the period covered by the 
statement;
    (f) The following information for and, as of the close of business 
on the ending date of, the period covered by the statement:
    (1) The total account balance and tax-exempt balance, if applicable;
    (2) The account balance and activity for each source of 
contributions;
    (3) The account balance and activity in each TSP Fund, including the 
dollar amount of the transaction, the share price, and the number of 
shares; and
    (4) Loan information and activity, if applicable;
    (g) Any other information concerning the account that the Board 
determines should be included in the statement.

[68 FR 35501, June 13, 2003, as amended at 70 FR 32214, June 1, 2005; 72 
FR 51354, Sept. 7, 2007]



Sec.  1640.4  Account transactions.

    (a) Where relevant, the following transactions will be reported in 
each individual account statement:
    (1) Contributions;
    (2) Withdrawals;
    (3) Forfeitures;

[[Page 293]]

    (4) Loan disbursements and repayments;
    (5) Transfers among TSP Funds;
    (6) Adjustments to prior transactions;
    (7) Transfers or rollovers from traditional individual retirement 
accounts (IRAs) and eligible employer plans; and
    (8) Any other transaction that the Executive Director determines 
will affect the status of the individual account.
    (b) Where relevant, the statement will contain the following 
information concerning each transaction identified in paragraph (a) of 
this section:
    (1) Type of transaction;
    (2) TSP Funds affected;
    (3) Date the transaction was posted and, where relevant, any earlier 
dates on which the transaction should have been posted or from which the 
calculation of the amount of the transaction was derived;
    (4) Source of the contributions affected by the transaction;
    (5) Amount of the transaction (in dollars and in shares);
    (6) The share price(s) at which the transaction was posted; and
    (7) Any other information the Executive Director deems relevant.

[68 FR 35501, June 13, 2003, as amended at 70 FR 32214, June 1, 2005]



Sec.  1640.5  TSP Fund information.

    The Board will provide to each participant four (4) times each 
calendar year a statement concerning each of the TSP Funds. This 
statement will contain the following information concerning each 
investment fund:
    (a) A summary description of the type of investments made by the 
fund, written in a manner that will allow the participant to make an 
informed decision; and
    (b) The performance history of the type of investments made by the 
fund, covering the five-year period preceding the date of the 
evaluation.

[68 FR 35501, June 13, 2003, as amended at 70 FR 32214, June 1, 2005]



Sec.  1640.6  Methods of providing information.

    The TSP will furnish the information described in this part to 
participants by making it available on the TSP Web site. A participant 
can request paper copies of that information from the TSP by calling the 
ThriftLine, submitting a request through the TSP Web site, or by writing 
to the TSP record keeper.

[68 FR 74451, Dec. 23, 2003]



PART 1645_CALCULATION OF SHARE PRICES--Table of Contents



Sec.
1645.1 Definitions.
1645.2 Posting of transactions.
1645.3 Calculation of total net earnings for each TSP Fund.
1645.4 Administrative expenses attributable to each TSP Fund.
1645.5 Calculation of share prices.
1645.6 Basis for calculation of share prices.

    Authority: 5 U.S.C. 8439(a)(3) and 8474.

    Source: 68 FR 35502, June 13, 2003, unless otherwise noted.



Sec.  1645.1  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this part:
    Accrued means that income is accounted for when earned and expenses 
are accounted for when incurred.
    Administrative expenses means expenses described in 5 U.S.C. 
8437(c)(3).
    Basis means the number of shares of an investment fund upon which 
the calculation of a share price is based.
    Business day means any calendar day for which share prices are 
calculated.
    Forfeitures means amounts forfeited to the TSP pursuant to 5 U.S.C. 
8432(g)(2) and other non-statutory forfeited amounts, net of restored 
forfeited amounts.



Sec.  1645.2  Posting of transactions.

    Contributions, loan payments, loan disbursements, withdrawals, 
interfund transfers, and other transactions will be posted in dollars 
and in shares by source and by TSP Fund to the appropriate individual 
account by the TSP record keeper, using the share price for the date the 
transaction is posted.

[70 FR 32214, June 1, 2005]

[[Page 294]]



Sec.  1645.3  Calculation of total net earnings for each TSP Fund.

    (a) Each business day, net earnings will be calculated separately 
for each TSP Fund.
    (b) Net earnings for each fund will equal:
    (1) The sum of the following items, if any, accrued since the last 
business day:
    (i) Interest on money of that fund which is invested in the 
Government Securities Investment Fund;
    (ii) Interest on other short-term investments of the fund;
    (iii) Other income (such as dividends, interest, or securities 
lending income) on investments of the fund; and
    (iv) Capital gains or losses on investments of the fund, net of 
transaction costs.
    (2) Minus the accrued administrative expenses of the fund, 
determined in accordance with Sec.  1645.4.
    (c) The net earnings for each TSP fund determined in accordance with 
paragraph (b) of this section will be added to the residual net earnings 
for that fund from the previous business day, as described in Sec.  
1645.5(b), to produce the total net earnings. The total net earnings 
will be used to calculate the share price for that business day.

[70 FR 32214, June 1, 2005]



Sec.  1645.4  Administrative expenses attributable to each TSP Fund.

    A portion of the administrative expenses accrued during each 
business day will be charged to each TSP Fund. A fund's respective 
portion of administrative expenses will be determined as follows:
    (a) Accrued administrative expenses (other than those described in 
paragraph (b) of this section) will be reduced by accrued forfeitures 
and accrued earnings on forfeitures, abandoned accounts, and unapplied 
deposits;
    (b) Investment management fees and other accrued administrative 
expenses attributable only to a particular fund will be charged solely 
to that fund.
    (c) The amount of accrued administrative expenses not covered by 
forfeitures under paragraph (a) of this section, and not described in 
paragraph (b) of this section, will be charged on a pro rata basis to 
all TSP Funds, based on the respective fund balances on the last 
business day of the prior month end.

[70 FR 32214, June 1, 2005]



Sec.  1645.5  Calculation of share prices.

    (a) Calculation of share price. The share price for each TSP Fund 
for each business day will apply to all sources of contributions for 
that fund. The total net earnings (as computed under Sec.  1645.3) for 
each fund will be divided by the total fund basis (as computed under 
Sec.  1645.6) for that fund. The resulting number, computed to ten 
decimal places, represents the incremental change in the value of that 
fund from the last business day to the current business day. The share 
price for that fund for the current business day is the sum of the 
incremental change in the share price for the current business day plus 
the share price for the prior business day, truncated to two decimal 
places.
    (b) Residual net earnings. When the total net earnings for each 
business day for each TSP Fund are divided by the total fund basis in 
that fund, there will be residual net earnings attributable to the 
truncation described in paragraph (a) of this section which will not be 
included in the incremental change in the share price of the fund for 
that business day. The residual net earnings that are not included in 
the incremental share price for the fund may be added to the earnings 
for that fund on the next business day.

[70 FR 32214, June 1, 2005]



Sec.  1645.6  Basis for calculation of share prices.

    The total fund basis for a TSP Fund will be the sum of the number of 
shares in all individual accounts from all sources of contributions in 
that fund as of the opening of business on each business day.

[70 FR 32215, June 1, 2005]

[[Page 295]]



PART 1650_METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS PLAN--
Table of Contents



                            Subpart A_General

Sec.
1650.1 Definitions.
1650.2 Eligibility and general rules for a TSP withdrawal.
1650.3 Frozen accounts.
1650.4 Certification of truthfulness.
1650.5 Returned funds
1650.6 Deceased participant.

                  Subpart B_Post-Employment Withdrawals

1650.11 Withdrawal elections.
1650.12 Single payment.
1650.13 Installment payments.
1650.14 Annuities.
1650.16 Required minimum distributions.
1650.17 Changes and cancellation of a withdrawal request.

          Subpart C_Procedures for Post-Employment Withdrawals

1650.21 Information provided by employing agency or service.
1650.22 Accounts of $200 or more.
1650.23 Accounts of less than $200.
1650.24 How to obtain a post-employment withdrawal.
1650.25 Transfers from the TSP.

                    Subpart D_In-Service Withdrawals

1650.31 Age-based withdrawals.
1650.32 Financial hardship withdrawals.
1650.33 Contributing to the TSP after an in-service withdrawal.
1650.34 Uniqueness of loans and withdrawals.

             Subpart E_Procedures for In-Service Withdrawals

1650.41 How to obtain an age-based withdrawal.
1650.42 How to obtain a financial hardship withdrawal.
1650.43 [Reserved]

Subpart F [Reserved]

                        Subpart G_Spousal Rights

1650.61 Spousal rights applicable to post-employment withdrawals.
1650.62 Spousal rights applicable to in-service withdrawals.
1650.63 Executive Director's exception to the spousal notification 
          requirement.
1650.64 Executive Director's exception to the spousal consent 
          requirement.

    Authority: 5 U.S.C. 8351, 8432d, 8433, 8434, 8435, 8474(b)(5) and 
8474(c)(1).

    Source: 68 FR 35503, June 13, 2003, unless otherwise noted.



                            Subpart A_General



Sec.  1650.1  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this part:
    In-service withdrawal means an age-based or financial hardship 
withdrawal from the TSP that may be available to a participant who has 
not yet separated from Government service.
    Post-employment withdrawal means a withdrawal from the TSP that is 
available to a participant who is separated from Government service.
    Required beginning date means April 1 of the year following the year 
in which the participant reaches 70 \1/2\ years of age or separates from 
Government service, whichever is later.
    Required minimum distribution means the amount required to be 
distributed to a participant beginning on the required beginning date 
and every year thereafter pursuant to Internal Revenue Code section 
401(a)(9) and the regulations promulgated thereunder, as applicable.

[68 FR 35503, June 13, 2003, as amended at 70 FR 32215, June 1, 2005; 84 
FR 46420, Sept. 4, 2019]



Sec.  1650.2  Eligibility and general rules for a TSP withdrawal.

    (a) A participant who is separated from Government service can elect 
to withdraw all or a portion of his or her account balance by one or a 
combination of the withdrawal methods described in subpart B of this 
part.
    (b) A post-employment withdrawal will not be paid unless TSP records 
indicate that the participant is separated from Government service. The 
TSP will, when possible, cancel a pending post-employment withdrawal 
election upon receiving information from an employing agency that a 
participant is no longer separated.
    (c) A participant cannot make a post-employment withdrawal until any 
outstanding TSP loan has either been repaid in full or declared to be a 
taxable

[[Page 296]]

distribution. An outstanding TSP loan will not affect a participant's 
eligibility for an in-service withdrawal.
    (d) A separated participant who is reemployed in a position in which 
he or she is eligible to participate in the TSP is subject to the 
following rules:
    (1) A participant who is reemployed in a TSP-eligible position on or 
before the 31st full calendar day after separation is not eligible to 
withdraw his or her TSP account in accordance with subpart B of this 
part.
    (2) A participant who is reemployed in a TSP-eligible position more 
than 31 full calendar days after separation and who made a post-
employment withdrawal while separated may not withdraw any remaining 
portion of his or her account balance in accordance with subpart B of 
this part until he or she again separates from Government service.
    (e) A participant who has not separated from Government service may 
be eligible to withdraw all or a portion of his or her account in 
accordance with subparts D and E of this part.
    (f) A participant can elect to have any portion of a single or 
installment payment that is not transferred to an eligible employer 
plan, traditional IRA, or Roth IRA deposited directly, by electronic 
funds transfer (EFT), into a savings or checking account at a financial 
institution in the United States.
    (g) If a participant has a civilian TSP account and a uniformed 
services TSP account, the rules in this part apply to each account 
separately. For example, the participant is eligible to make four age-
based in-service withdrawals from the civilian account and four age-
based in-service withdrawals from the uniformed services account per 
calendar year. A separate withdrawal request must be made for each 
account.
    (h) A participant may elect to have his or her withdrawal 
distributed from the participant's traditional balance only, Roth 
balance only, or pro rata from the participant's traditional and Roth 
balances. Any distribution from the traditional balance will be prorated 
between the tax-deferred balance and any tax-exempt balance. Any 
distribution from the Roth balance will be prorated between 
contributions in the Roth balance and earnings in the Roth balance. In 
addition, all withdrawals will be distributed pro rata from all TSP 
Funds in which the participant's account is invested. All prorated 
amounts will be based on the balances in each TSP Fund or source of 
contributions on the day the withdrawal is processed.

[68 FR 35503, June 13, 2003, as amended at 77 FR 26426, May 4, 2012; 84 
FR 46420, Sept. 4, 2019]



Sec.  1650.3  Frozen accounts.

    (a) All withdrawals from the TSP are subject to the rules relating 
to spousal rights (found in subpart G of this part) and to domestic 
relations orders, alimony and child support legal process, and child 
abuse enforcement orders (found in 5 CFR part 1653).
    (b) A participant may not withdraw any portion of his or her account 
balance if the account is frozen due to a pending retirement benefits 
court order, an alimony or child support enforcement order, or a child 
abuse enforcement order, or because a freeze has been placed on the 
account by the TSP for another reason.



Sec.  1650.4  Certification of truthfulness.

    By signing a TSP withdrawal form, electronically or on paper, the 
participant certifies, under penalty of perjury, that all information 
provided to the TSP during the withdrawal process is true and complete, 
including statements concerning the participant's marital status and, 
where applicable, the spouse's address at the time the application is 
filed or the current spouse's consent to the withdrawal.

[70 FR 32215, June 1, 2005]



Sec.  1650.5  Returned funds.

    If a withdrawal is returned as undeliverable, the TSP record keeper 
will attempt to locate the participant. If the participant does not 
respond within 60 days, the TSP will forfeit the returned funds to the 
Plan. The participant can claim the forfeited funds, although they will 
not be credited with TSP investment fund returns.

[[Page 297]]



Sec.  1650.6  Deceased participant.

    (a) The TSP will cancel a pending withdrawal request if it processes 
a written notice that a participant is deceased. The TSP will also 
cancel an annuity purchase made on or after the participant's date of 
death but before annuity payments have begun, and the annuity vendor 
will return the funds to the TSP.
    (b) If the TSP processes a withdrawal request before being notified 
that a participant is deceased, the funds cannot be returned to the TSP.

[70 FR 32215, June 1, 2005]



                  Subpart B_Post-Employment Withdrawals



Sec.  1650.11  Withdrawal elections.

    (a) Subject to the restrictions in this subpart, participants may 
elect to withdraw all or a portion of their TSP accounts in a single 
payment, a series of installment payments, a life annuity, or any 
combination of these options.
    (b) If a participant's account balance is less than $5.00 when he or 
she separates from Government service, the balance will automatically be 
forfeited to the TSP. The participant can reclaim the money by writing 
to the TSP record keeper and requesting the amount that was forfeited; 
however, TSP investment earnings will not be credited to the account 
after the date of the forfeiture.
    (c) Provided that the participant has not submitted a post-
employment withdrawal election prior to the date the automatic payment 
is processed, if a participant's vested account balance is less than 
$200 when he or she separates from Government service, the TSP will 
automatically pay the balance in a single payment to the participant at 
his or her TSP address of record. The participant will not be eligible 
for any other payment option or be allowed to remain in the TSP.
    (d) Only one post-employment withdrawal election per account will be 
processed in any 30-calendar-day period.

[68 FR 35503, June 13, 2003, as amended at 70 FR 32215, June 1, 2005; 77 
FR 26426, May 4, 2012; 84 FR 46420, Sept. 4, 2019]



Sec.  1650.12  Single payment.

    Provided that, in the case of a partial withdrawal, the amount 
elected is not less than $1,000, a participant can elect to withdraw all 
or a portion of his or her account balance in a single payment.

[84 FR 46420, Sept. 4, 2019]



Sec.  1650.13  Installment payments.

    (a) A participant can elect to withdraw all or a portion of the 
account balance in a series of substantially equal installment payments, 
to be paid on a monthly, quarterly, or annual basis in one of the 
following manners:
    (1) A specific dollar amount. The amount elected must be at least 
$25 per installment; if the amount elected is less than $25 per 
installment, the request will be rejected. Payments will be made in the 
amount requested each installment period.
    (2) An installment payment amount calculated based on life 
expectancy. Payments based on life expectancy are determined using the 
factors set forth in the Internal Revenue Service life expectancy tables 
codified at 26 CFR 1.401(a)(9)-9, Q&A 1 and 2. The installment payment 
amount is calculated by dividing the account balance by the factor from 
the IRS life expectancy tables based upon the participant's age as of 
his or her birthday in the year payments are to begin. This amount is 
then divided by the number of installment payments to be made per 
calendar year to yield the installment payment amount. In subsequent 
years, the installment payment amount is recalculated each January by 
dividing the prior December 31 account balance by the factor in the IRS 
life expectancy tables based upon the participant's age as of his or her 
birthday in the year payments will be made. There is no minimum amount 
for an installment payment calculated based on this method.
    (b) A participant receiving installment payments calculated based 
upon life expectancy can make one election, at any time, to change to a 
fixed dollar installment payment. A participant can change the amount of 
his or her fixed payments at any time as described in Sec.  1650.17(c). 
A participant

[[Page 298]]

who is receiving installment payments based on a fixed dollar amount, 
however, cannot elect to change to an amount calculated based on life 
expectancy.
    (c) If a participant elects to receive installments pro rata from 
his or her traditional and Roth balances, installment payments will be 
made until the participant's entire account balance is expended, unless 
the participant elects to change or stop installment payments as 
described in in Sec.  1650.17(c). If a participant elects to receive 
installment payments from his or her traditional balance only or Roth 
balance only, installment payments will automatically continue from the 
non-elected balance once the elected balance has been expended, unless 
the participant elects to change or stop installment payments as 
described in Sec.  1650.17(c).
    (d) A participant receiving installment payments, regardless of the 
calculation method, can elect at any time to receive the remainder or 
part of his or her account balance in a single payment.
    (e) A participant may only have one installment payment series in 
place at a time.
    (f) A participant receiving installment payments may change the 
investment of his or her account balance among the TSP investment funds 
as provided in 5 CFR part 1601.
    (g) Upon receiving information from an employing agency that a 
participant receiving installment payments is no longer separated, the 
TSP will cancel all pending and future installment payments.

[84 FR 46420, Sept. 4, 2019]



Sec.  1650.14  Annuities.

    (a) A participant electing a post-employment withdrawal can use all 
or a portion of his or her total account balance, traditional balance 
only, or Roth balance only to purchase a life annuity.
    (b) If a participant has a traditional balance and a Roth balance 
and elects to use all or a portion of his or her total account balance 
to purchase a life annuity, the TSP must purchase two separate annuity 
contracts for the participant: One from the portion of the withdrawal 
distributed from his or her traditional balance and one from the portion 
of the withdrawal distributed from his or her Roth balance.
    (c) A participant cannot elect to purchase an annuity contract with 
less than $3,500.
    (d) Unless an amount must be paid directly to the participant to 
satisfy any applicable minimum distribution requirement of the Internal 
Revenue Code, the TSP will purchase the annuity contract(s) from the 
TSP's annuity vendor using the participant's entire account balance or 
the portion specified. In the event that a minimum distribution is 
required by section 401(a)(9) of the Internal Revenue Code before the 
date of the first annuity payment, the TSP will compute that amount 
prior to purchasing the annuity contract(s), and pay it directly to the 
participant.
    (e) An annuity will provide a payment for life to the participant 
and, if applicable, to the participant's survivor, in accordance with 
the type of annuity chosen. The TSP annuity vendor will make the first 
annuity payment approximately 30 days after the TSP purchases the 
annuity.
    (f) The amount of an annuity payment will depend on the type of 
annuity chosen, the participant's age when the annuity is purchased (and 
the age of the joint annuitant, if applicable), the amount used to 
purchase the annuity, and the interest rate available when the annuity 
is purchased.
    (g) Participants may choose among the following types of annuities:
    (1) A single life annuity with level payments. This annuity provides 
monthly payments to the participant as long as the participant lives. 
The amount of the monthly payment remains constant.
    (2) A joint life annuity for the participant and spouse with level 
payments. This annuity provides monthly payments to the participant, as 
long as both the participant and spouse are alive, and monthly payments 
to the survivor, as long as the survivor is alive. The amount of the 
monthly payment remains constant, although the amount received will 
depend on the type of survivor benefit elected.

[[Page 299]]

    (3) A joint life annuity for the participant and another person with 
level payments. This annuity provides monthly payments to the 
participant as long as both the participant and the joint annuitant are 
alive, and monthly payments to the survivor as long as the survivor is 
alive. The amount of the monthly payment remains constant. The joint 
annuitant must be either a former spouse or a person who has an 
insurable interest in the participant.
    (i) A person has an ``insurable interest in the participant'' if the 
person is financially dependent on the participant and could reasonably 
expect to derive financial benefit from the participant's continued 
life.
    (ii) A relative (either blood or adopted, but not by marriage) who 
is closer than a first cousin is presumed to have an insurable interest 
in the participant.
    (iii) A participant can establish that a person not described in 
paragraph (d)(3)(ii) of this section has an insurable interest in him or 
her by submitting, with the annuity request, an affidavit from a person 
other than the participant or the joint annuitant that demonstrates that 
the designated joint annuitant has an insurable interest in the 
participant (as described in paragraph (d)(3)(i) of this section).
    (4) Either a single life or joint (with spouse) life annuity with 
increasing payments. This annuity provides monthly payments to the 
participant only, or to the participant and spouse, as applicable. The 
monthly payments are adjusted once each year on the anniversary of the 
first payment, based on the Federal Bureau of Labor Statistics Consumer 
Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Each 
year, the percentage change in the monthly unadjusted CPI-W index for 
July, August, and September over the monthly unadjusted CPI-W index for 
July, August, and September of the prior year is calculated. The 
following calendar year, the amount of the monthly payment is adjusted 
by the lesser of 3 percent or the percentage increase in the CPI-W, if 
any. In no case will the amount of the monthly payment be decreased 
based on the CPI-W. If the participant chooses a joint life annuity, the 
annual increase also applies to benefits received by the survivor.
    (h) For each withdrawal election in which the participant elects to 
purchase an annuity with some or all of the amount withdrawn, if the TSP 
must purchase two annuity contracts, the type of annuity, the annuity 
features, and the joint annuitant (if applicable) selected by the 
participant will apply to both annuities purchased. For each withdrawal 
election, a participant cannot elect more than one type of annuity by 
which to receive a withdrawal, or portion thereof, from any one account.
    (i) A participant who chooses a joint life annuity (with a spouse, a 
former spouse, or a person with an insurable interest) must choose 
either a 50 percent or a 100 percent survivor benefit. The survivor 
benefit applies when either the participant or the joint annuitant dies.
    (1) A 50 percent survivor benefit provides a monthly payment to the 
survivor which is 50 percent of the amount of the payment that is made 
when both the participant and the joint annuitant are alive.
    (2) A 100 percent survivor benefit provides a monthly payment to the 
survivor, which is equal to the amount of the payment that is made when 
both the participant and the joint annuitant are alive.
    (3) Either the 50 percent or the 100 percent survivor benefit may be 
combined with any joint life annuity option. However, the 100 percent 
survivor benefit can only be combined with a joint annuity with a person 
other than the spouse (or a former spouse, if required by a retirement 
benefits court order) if the joint annuitant is not more than 10 years 
younger than the participant.
    (j) The following features are mutually exclusive, but can be 
combined with certain types of annuities, as indicated:
    (1) Cash refund. This feature provides that, if the participant (and 
joint annuitant, where applicable) dies before an amount equal to the 
balance used to purchase the annuity has been paid out, the difference 
between the balance used to purchase the annuity and the sum of monthly 
payments already

[[Page 300]]

made will be paid to the beneficiary(ies) designated by the participant 
(or by the joint annuitant, where applicable). This feature can be 
combined with any type of annuity.
    (2) Ten-year certain. This feature provides that, if the participant 
dies before annuity payments have been made for 10 years (120 payments), 
monthly payments will be made to the beneficiary(ies) until 120 payments 
have been made. This feature can be combined with any single life 
annuity, but cannot be combined with a joint life annuity.
    (k) Once an annuity has been purchased, the type of annuity, the 
annuity features, and the identity of the joint annuitant cannot be 
changed, and the annuity cannot be terminated.

[68 FR 35503, June 13, 2003, as amended at 77 FR 26426, May 4, 2012; 84 
FR 46421, Sept. 4, 2019]



Sec.  1650.16  Required minimum distributions.

    (a) A separated participant must receive required minimum 
distributions from his or her account commencing no later than the 
required beginning date and, for each year thereafter, no later than 
December 31.
    (b) A separated participant may elect to withdraw from his or her 
account or to begin receiving payments before the required beginning 
date, but is not required to do so.
    (c) In the event that a separated participant does not withdraw from 
his or her account an amount sufficient to satisfy his or her required 
minimum distribution for the year, the TSP will automatically distribute 
the necessary amount on or before the applicable date described in 
paragraph (a) of this section.
    (d) The TSP will disburse required minimum distributions described 
in paragraph (c) of this section pro rata from the participant's 
traditional balance and the participant's Roth balance.
    (e) The rules set forth in paragraphs (a) through (d) of this 
section shall apply to a separated participant who reclaims an account 
balance that was declared abandoned.

[84 FR 46421, Sept. 4, 2019]



Sec.  1650.17  Changes and cancellation of a withdrawal request.

    (a) Before processing. A pending withdrawal request can be cancelled 
if the cancellation is received and can be processed before the TSP 
processes the withdrawal request. However, the TSP processes withdrawal 
requests each business day and those that are entered into the record 
keeping system by 12:00 noon eastern time will ordinarily be processed 
that night; those entered after 12:00 noon eastern time will be 
processed the next business day. Consequently, a cancellation request 
must be received and entered into the system before the cut-off for the 
day the withdrawal request is submitted for processing in order to be 
effective to cancel the withdrawal.
    (b) After processing. A withdrawal election cannot be changed or 
cancelled after the withdrawal request has been processed. Consequently, 
funds disbursed cannot be returned to the TSP record keeper.
    (c) Change in installment payments. If a participant is receiving a 
series of installment payments, with appropriate supporting 
documentation as required by the TSP record keeper, the participant can 
change at any time: The payment amount or frequency (including stopping 
installment payments), the address to which the payments are mailed, the 
amount of federal tax withholding, whether or not a payment will be 
transferred (if permitted) and the portion to be transferred, the method 
by which direct payments to the participant are being sent (EFT or 
check), the identity of the financial institution to which payments are 
transferred or sent by EFT, or the identity of the EFT account.

[68 FR 35503, June 13, 2003, as amended at 70 FR 32215, June 1, 2005; 84 
FR 46421, Sept. 4, 2019]



          Subpart C_Procedures for Post-Employment Withdrawals



Sec.  1650.21  Information provided by employing agency or service.

    When a TSP participant separates from Government service, his or her

[[Page 301]]

employing agency or service must report the separation and the date of 
separation to the TSP record keeper. Until the TSP record keeper 
receives this information from the employing agency or service, it will 
not pay a post-employment withdrawal.

[84 FR 46421, Sept. 4, 2019]



Sec.  1650.22  Accounts of $200 or more.

    A participant whose account balance is $200 or more must submit a 
properly completed withdrawal election to request a post-employment 
withdrawal of his or her account balance.



Sec.  1650.23  Accounts of less than $200.

    Upon receiving information from the employing agency that a 
participant has been separated for more than 31 days and that any 
outstanding loans have been closed, provided the participant has not 
made a withdrawal election before the distribution is processed, if the 
account balance is $5.00 or more but less than $200, the TSP record 
keeper will automatically distribute the entire amount of his or her 
account balance. The TSP will not pay this amount by EFT. The 
participant may not elect to leave this amount in the TSP, nor will the 
TSP transfer any automatically distributed amount to an eligible 
employer plan, traditional IRA, or Roth IRA. However, the participant 
may elect to roll over this payment into an eligible employer plan, 
traditional IRA, or Roth IRA to the extent the roll over is permitted by 
the Internal Revenue Code.

[84 FR 46422, Sept. 4, 2019]



Sec.  1650.24  How to obtain a post-employment withdrawal.

    To request a post-employment withdrawal, a participant must use the 
TSP website to initiate a request or submit to the TSP record keeper a 
properly completed paper TSP post-employment withdrawal request form.

[84 FR 46422, Sept. 4, 2019]



Sec.  1650.25  Transfers from the TSP.

    (a) The TSP will, at the participant's election, transfer all or any 
portion of an eligible rollover distribution (as defined by section 
402(c)(4) of the Internal Revenue Code) directly to an eligible employer 
plan or an IRA.
    (b) If a withdrawal includes a payment from a participant's 
traditional balance and a payment from the participant's Roth balance, 
the TSP will, at the participant's election, transfer all or a portion 
of the payment from the traditional balance to a single plan or IRA and 
all or a portion of the payment from the Roth balance to another plan or 
IRA. The TSP will also allow the traditional and Roth portions of a 
payment to be transferred to the same plan or IRA but, for each type of 
balance, the election must be made separately by the participant and 
each type of balance will be transferred separately. However, the TSP 
will not transfer portions of the participant's traditional balance to 
two different institutions or portions of the participant's Roth balance 
to two different institutions.
    (c) If a withdrawal includes an amount from a participant's Roth 
balance and the participant elects to transfer that amount to another 
eligible employer plan or Roth IRA, the TSP will inform the plan 
administrator or trustee of the start date of the participant's Roth 5 
year non-exclusion period or the participant's Roth initiation date, and 
the portion of the distribution that represents Roth contributions. If a 
withdrawal includes an amount from a participant's Roth balance and the 
participant does not elect to transfer the amount, the TSP will inform 
the participant of the portion of the distribution that represents Roth 
contributions.
    (d) Tax-exempt contributions can be transferred only if the IRA or 
plan accepts such funds.
    (e) The TSP will transfer distributions only to the extent that the 
transfer is permitted by the Internal Revenue Code.

[77 FR 26427, May 4, 2012, as amended at 84 FR 46422, Sept. 4, 2019]



                    Subpart D_In-Service Withdrawals



Sec.  1650.31  Age-based withdrawals.

    (a) A participant who has reached age 59\1/2\ and who has not 
separated from

[[Page 302]]

Government service is eligible to withdraw all or a portion of his or 
her vested TSP account balance in a single payment. Unless the 
withdrawal request is for the entire vested account balance, the entire 
vested traditional balance, or the entire vested Roth balance, the 
amount of an age-based withdrawal request must be at least $1,000.
    (b) An age-based withdrawal is an eligible rollover distribution, so 
a participant may request that the TSP transfer all or a portion of the 
withdrawal to a traditional IRA, an eligible employer plan, or a Roth 
IRA in accordance with Sec.  1650.25.
    (c) A participant is permitted four age-based withdrawals per 
calendar year for an account. Only one age-based withdrawal election per 
account will be processed in any 30-calendar-day-period.

[68 FR 35503, June 13, 2003, as amended at 75 FR 24785, May 6, 2010; 77 
FR 26427, May 4, 2012; 84 FR 46422, Sept. 4, 2019]



Sec.  1650.32  Financial hardship withdrawals.

    (a) A participant who has not separated from Government employment 
and who can certify that he or she has a financial hardship is eligible 
to withdraw all or a portion of his or her own contributions to the TSP 
(and their attributable earnings) in a single payment to meet certain 
specified financial obligations. The amount of a financial hardship 
withdrawal request must be at least $1,000.
    (b) To be eligible for a financial hardship withdrawal, a 
participant must have a financial need that results from at least one of 
the following four conditions:
    (1) The participant's monthly cash flow is negative (i.e., the 
participant's income is less than his or her monthly expenses on a 
recurring basis);
    (2) The participant has incurred medical expenses as a result of a 
medical condition, illness, or injury to the participant, the 
participant's spouse, or the participant's dependents. Generally, 
eligible expenses are those that would be eligible for deduction as 
medical expenses for Federal income tax purposes. Eligible medical 
expenses include the cost of household improvements required as a result 
of a medical condition, illness or injury. Household improvements are 
structural improvements to the participant's living quarters or the 
installation of special equipment that is necessary to accommodate the 
circumstances of the incapacitated person.
    (3) The participant must have paid the cost of repair or replacement 
resulting from a personal casualty loss that would be eligible for 
deduction for Federal income tax purposes, but without regard to the IRS 
income limitations on deductibility, fair market value of the property, 
or number of events. Personal casualty loss includes damage, 
destruction, or loss of property resulting from a sudden, unexpected, or 
unusual event, such as an earthquake, hurricane, tornado, flood, storm, 
fire, or theft.
    (4) The participant must have paid attorney fees and court costs 
associated with separation or divorce. Court-ordered payments to a 
spouse or former spouse and child support payments are not allowed, nor 
are costs of obtaining prepaid legal services or other coverage for 
legal services.
    (c) When determining financial hardship needs, a participant cannot 
use any expenses that are already paid or are reimbursable to the 
participant by insurance or otherwise.
    (d) The amount of a participant's financial hardship withdrawal 
cannot exceed the smallest of the following:
    (1) The amount requested; or
    (2) The amount in the participant's account that is equal to his or 
her own contributions and attributable earnings.
    (e) The participant must certify that he or he has a financial 
hardship as described on the hardship withdrawal form, and that the 
dollar amount of the withdrawal request does not exceed the actual 
amount of the financial hardship.
    (f) A participant is not eligible for an in-service hardship 
withdrawal based solely on monthly negative cash flow (as described in 
paragraph (b)(1) of this section) during the time he or she has pending 
a petition in bankruptcy under Chapter 13 of the Bankruptcy Code (11 
U.S.C. chapter 13).

[68 FR 35503, June 13, 2003, as amended at 68 FR 74451, Dec. 23, 2003]

[[Page 303]]



Sec.  1650.33  Contributing to the TSP after an in-service withdrawal.

    (a) Age-Based In-Service Withdrawals. A participant's TSP 
contribution election will not be affected by an age-based in-service 
withdrawal; therefore, his or her TSP contributions will continue 
without interruption.
    (b) Financial Hardship In-Service Withdrawals. (1) A participant who 
obtains a financial hardship in-service withdrawal prior to September 
15, 2019, may not contribute to the TSP until the earlier of:
    (i) The end of the six-month period after the withdrawal is 
processed, or
    (ii) September 15, 2019.
    (2) Therefore, the participant's employing agency will discontinue 
his or her contributions (and any applicable Agency Matching 
Contributions) for the applicable period after the agency is notified by 
the TSP; in the case of a FERS or BRS participant, Agency Automatic (1%) 
Contributions will continue. A participant whose TSP contributions are 
discontinued by his or her agency after a financial hardship withdrawal 
can resume contributions any time after expiration of the applicable 
period by submitting a new TSP contribution election. Contributions will 
not resume automatically.
    (3) A participant's TSP contribution election will not be affected 
by a financial hardship in-service withdrawal obtained on or after 
September 15, 2019; therefore, his or her TSP contributions will 
continue without interruption.

[84 FR 46422, Sept. 4, 2019]



Sec.  1650.34  Uniqueness of loans and withdrawals.

    An outstanding TSP loan cannot be converted into an in-service 
withdrawal or vice versa. Funds distributed as an in-service withdrawal 
cannot be returned or repaid.



             Subpart E_Procedures for In-Service Withdrawals



Sec.  1650.41  How to obtain an age-based withdrawal.

    To request an age-based withdrawal, a participant must use the TSP 
website to initiate a request or submit to the TSP record keeper a 
properly-completed paper TSP age-based withdrawal request form.

[84 FR 46422, Sept. 4, 2019]



Sec.  1650.42  How to obtain a financial hardship withdrawal.

    (a) To request a financial hardship withdrawal, a participant must 
use the TSP website to initiate a request or submit to the TSP record 
keeper a properly-completed paper TSP hardship withdrawal request form.
    (b) There is no limit on the number of financial hardship 
withdrawals a participant can make; however, the TSP will not accept a 
financial hardship withdrawal request for a period of six months after a 
financial hardship disbursement is made.

[68 FR 35503, June 13, 2003, as amended at 70 FR 32215, June 1, 2005; 84 
FR 46422, Sept. 4, 2019]



Sec.  1650.43  [Reserved]

Subpart F [Reserved]



                        Subpart G_Spousal Rights



Sec.  1650.61  Spousal rights applicable to post-employment withdrawals.

    (a) The spousal rights described in this section apply to total 
post-employment withdrawals when the married participant's vested TSP 
account balance exceeds $3,500, to partial post-employment withdrawals 
without regard to the amount of the participant's account balance, and 
to any change in the amount or frequency of an existing installment 
payment series, including a change from payments calculated based on 
life expectancy to payments based on a fixed-dollar amount.
    (b) Unless the participant was granted an exception under this 
subpart to the spousal notification requirement within 90 days of the 
date the withdrawal request is processed by the TSP, the spouse of a 
CSRS participant is entitled to notice when the participant applies for 
a post-employment withdrawal or makes a change to the amount or 
frequency of an existing installment payment series. The participant 
must provide the TSP record keeper with the spouse's correct address. 
The TSP record keeper will send

[[Page 304]]

the required notice by first class mail to the spouse at the most recent 
address provided by the participant.
    (c) The spouse of a FERS or uniformed services participant has a 
right to a joint and survivor annuity with a 50 percent survivor 
benefit, level payments, and no cash refund based on the participant's 
entire account balance when the participant elects a total post-
employment withdrawal.
    (1) The participant may make a different total withdrawal election 
only if his or her spouse consents to that election and waives the right 
to this annuity.
    (2) A participant's spouse must consent to any partial withdrawal 
election (other than an election to purchase this type of an annuity 
with such amount) and waive his or her right to this annuity with 
respect the amount withdrawn.
    (3) A spouse must consent to any change in the amount or frequency 
of an existing installment payment series and waive his or her right to 
this annuity with respect to the applicable amount. Spousal consent is 
not required to stop installment payments.
    (4) Unless the TSP granted the participant an exception under this 
subpart to the spousal notification requirement within 90 days of the 
date the withdrawal form is processed by the TSP, to show that the 
spouse has consented to a different total or partial withdrawal election 
or installment payment change and waived the right to this annuity with 
respect to the applicable amount, the participant must submit to the TSP 
record keeper a properly completed withdrawal request form, signed by 
his or her spouse in the presence of a notary. If the TSP granted the 
participant an exception to the signature requirement, the participant 
should enclose a copy of the TSP's approval letter with the withdrawal 
form.
    (5) The spouse's consent and waiver is irrevocable for the 
applicable withdrawal or installment payment change once the TSP record 
keeper has received it.

[84 FR 46422, Sept. 4, 2019]



Sec.  1650.62  Spousal rights applicable to in-service withdrawals.

    (a) The spousal rights described in this section apply to all in-
service withdrawals and do not depend on the amount of the participant's 
vested account balance or the amount requested for withdrawal.
    (b) Unless the participant was granted an exception under this 
subpart to the spousal notification requirement within 90 days of the 
date on which the withdrawal request is processed by the TSP, the spouse 
of a CSRS participant is entitled to notice when the participant applies 
for an in-service withdrawal. If the TSP granted the participant an 
exception to the notice requirement, the participant should enclose a 
copy of the TSP's approval letter with the withdrawal form. The 
participant must provide the TSP record keeper with the spouse's correct 
address. The TSP record keeper will send the required notice by first 
class mail to the spouse at the most recent address provided by the 
participant.
    (c) Unless the participant was granted an exception under this 
subpart to the signature requirement within 90 days of the date the 
withdrawal form is processed by the TSP, before obtaining an in-service 
withdrawal, a participant who is covered by FERS or who is a member of 
the uniformed services must obtain the consent of his or her spouse and 
waiver of the spouse's right to a joint and survivor annuity described 
in Sec.  1650.61(c) with respect to the applicable amount. To show the 
spouse's consent and waiver, a participant must submit to the TSP record 
keeper a properly completed withdrawal request form, signed by his or 
her spouse in the presence of a notary. Once a form containing the 
spouse's consent and waiver has been submitted to the TSP record keeper, 
the spouse's consent is irrevocable for that withdrawal.

[68 FR 35503, June 13, 2003, as amended at 69 FR 29851, May 26, 2004; 84 
Fr 46423, Sept. 4, 2019]



Sec.  1650.63  Executive Director's exception to the spousal 
notification requirement.

    (a) Whenever this subpart requires the Executive Director to give 
notice of an action to the spouse of a CSRS

[[Page 305]]

participant, an exception to this requirement may be granted if the 
participant establishes to the satisfaction of the Executive Director 
that the spouse's whereabouts cannot be determined. A request for such 
an exception must be submitted to the TSP record keeper on the 
appropriate TSP paper form, accompanied by the following:
    (1) A court order stating that the spouse's whereabouts cannot be 
determined;
    (2) A police or governmental agency determination, signed by the 
appropriate department or division head, which states that the spouse's 
whereabouts cannot be determined; or
    (3) Statements by the participant and two other persons, which meet 
the following requirements:
    (i) The participant's statement must give the full name of the 
spouse, declare the participant's inability to locate the spouse, state 
the last time the spouse's location was known, explain why the spouse's 
location is not known currently, and describe the good faith efforts the 
participant has made to locate the spouse in the 90 days before the 
request for an exception was received by the TSP. Examples of attempting 
to locate the spouse include, but are not limited to, checking with 
relatives and mutual friends or using telephone directories and 
directory assistance for the city of the spouse's last known address. 
Negative statements, such as, ``I have not seen nor heard from him,'' or 
``I have not had contact with her,'' are not sufficient.
    (ii) The statements from two other persons must support the 
participant's statement that he or she does not know the spouse's 
whereabouts, and substantiate the participant's description of the 
efforts he or she made to locate the spouse, including the dates the 
participant made those efforts.
    (iii) All statements must be signed and dated and must include the 
following certification: ``I understand that a false statement or 
willful misrepresentation is punishable under Federal law (18 U.S.C. 
1001) by a fine or imprisonment or both.''.
    (b) A withdrawal election will be processed within 90 days of an 
approved exception so long as the spouse named on the form is the spouse 
for whom the exception has been approved. The spouse's SSN must be 
included on the withdrawal request.
    (c) The TSP, in its discretion, may require a participant to provide 
additional information before granting a waiver. The TSP may use any of 
the information provided to conduct its own search for the spouse.

[68 FR 35503, June 13, 2003, as amended at 70 FR 32215, June 1, 2005]



Sec.  1650.64  Executive Director's exception to the spousal 
consent requirement.

    (a) Whenever this subpart requires the consent of a spouse of a FERS 
or uniformed services participant to a loan or withdrawal or a waiver of 
the right to a survivor annuity, an exception to this requirement may be 
granted if the participant establishes to the satisfaction of the 
Executive Director that:
    (1) The spouse's whereabouts cannot be determined in accordance with 
the provisions of this subpart; or
    (2) Due to exceptional circumstances, requiring the spouse's 
signature would be inappropriate.
    (i) An exception to the requirement for a spouse's signature may be 
granted based on exceptional circumstances only when the participant 
presents a court order or government agency determination that contains 
a finding or a recitation of exceptional circumstances regarding the 
spouse which would warrant an exception to the signature requirement.
    (ii) Exceptional circumstances are narrowly construed, but are 
exemplified by a court order or government agency determination that:
    (A) Indicates that the spouse and the participant have been 
maintaining separate residences with no financial relationship for three 
or more years;
    (B) Indicates that the spouse abandoned the participant, but for 
religious or similarly compelling reasons, the parties chose not to 
divorce; or
    (C) Expressly states that the participant may obtain a loan from his 
or her TSP account or withdraw his or her Thrift Savings Plan account 
balance notwithstanding the absence of the spouse's signature.

[[Page 306]]

    (b) A post-employment withdrawal election or an in-service 
withdrawal request processed within 90 days of an approved exception 
will be accepted by the TSP so long as the spouse named on the form is 
the spouse for whom the exception has been approved. The spouse's SSN 
must be included on the withdrawal request form.

[68 FR 35503, June 13, 2003, as amended at 69 FR 29851, May 26, 2004]



PART 1651_DEATH BENEFITS--Table of Contents



Sec.
1651.1 Definitions.
1651.2 Entitlement to funds in a deceased participant's account.
1651.3 Designation of beneficiary.
1651.4 How to change or cancel a designation of beneficiary.
1651.5 Spouse of participant.
1651.6 Child or children.
1651.7 Parent or parents.
1651.8 Participant's estate.
1651.9 Participant's next of kin.
1651.10 Deceased and non-existent beneficiaries.
1651.11 Simultaneous death.
1651.12 Homicide.
1651.13 How to apply for a death benefit.
1651.14 How payment is made.
1651.15 Claims referred to the Board.
1651.16 Missing and unknown beneficiaries.
1651.17 Disclaimer of benefits.
1651.18 Payment to one bars payment to another.
1651.19 Beneficiary participant accounts.

    Authority: 5 U.S.C. 8424(d), 8432d, 8432(j), 8433(e), 8435(c)(2), 
8474(b)(5) and 8474(c)(1).

    Source: 62 FR 32429, June 13, 1997, unless otherwise noted.



Sec.  1651.1  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this subpart:
    Administrative finding means an evidence-based determination reached 
by a hearing, inquiry, investigation, or trial before an administrative 
agency of competent jurisdiction in any State, territory or possession 
of the United States.
    Death benefit means the portion of a deceased participant's account 
that is payable under FERSA's order of precedence.
    Order of precedence means the priority of entitlement to a TSP death 
benefit specified in 5 U.S.C. 8424(d).
    Required beginning date means:
    (1) The end of the calendar year immediately following the calendar 
year in which the participant died; or
    (2) The end of the calendar year in which the participant would have 
attained age 70\1/2\, whichever is later.
    Required minimum distribution means the amount required to be 
distributed to a beneficiary participant beginning on the required 
beginning date and every year thereafter pursuant to Internal Revenue 
Code section 401(a)(9) and the regulations promulgated thereunder, as 
applicable.
    TIN means a taxpayer identification number. A TIN may be a Social 
Security number (SSN), an employer identification number (EIN), or an 
individual taxpayer identification number (ITIN).

[68 FR 35509, June 13, 2003, as amended at 74 FR 63062, Dec. 2, 2009; 78 
FR 57784, Sept. 20, 2013; 84 FR 46423, Sept. 4, 2019]



Sec.  1651.2  Entitlement to funds in a deceased participant's account.

    (a) Death benefits. Except as provided in paragraph (b) of this 
section, the account balance of a deceased participant will be paid as a 
death benefit to the individual or individuals surviving the 
participant, in the following order of precedence:
    (1) To the beneficiary or beneficiaries designated by the 
participant on the TSP designation of beneficiary form that has been 
properly completed and filed in accordance with Sec.  1651.3;
    (2) If there is no designated beneficiary, to the spouse of the 
participant in accordance with Sec.  1651.5;
    (3) If there are no beneficiaries or persons as described in 
paragraphs (a)(1) and (a)(2) of this section, to the child or children 
of the participant and descendants of deceased children by 
representation in accordance with Sec.  1651.6;
    (4) If there are no beneficiaries or persons as described in 
paragraphs (a)(1) through (a)(3) of this section, to the parents of the 
participant in equal shares or entirely to the surviving parent in 
accordance with Sec.  1651.7;
    (5) If there are no beneficiaries or persons as described in 
paragraphs

[[Page 307]]

(a)(1) through (a)(4) of this section, to the duly appointed executor or 
administrator of the estate of the participant in accordance with Sec.  
1651.8; or
    (6) If there are no beneficiaries or persons as described in 
paragraphs (a)(1) through (a)(5) of this section, to the next of kin of 
the participant who is or are entitled under the laws of the state of 
the participant's domicile on the date of the participant's death in 
accordance with Sec.  1651.9.
    (b) TSP withdrawals. If the TSP processes a notice that a 
participant has died, it will cancel any pending request by the 
participant to withdraw his or her account. The TSP will also cancel an 
annuity purchase made on or after the participant's date of death but 
before annuity payments have begun, and the annuity vendor will return 
the funds to the TSP. The funds designated by the participant for the 
withdrawal will be paid as a death benefit in accordance with paragraph 
(a) of this section, unless the participant elected to withdrawal his or 
her account in the form of an annuity, in which case the funds 
designated for the purchase of the annuity will be paid as described 
below:
    (1) If the participant requested a single life annuity with no cash 
refund or 10-year certain feature, the TSP will pay the funds as a death 
benefit in accordance with paragraph (a) of this section.
    (2) If the participant requested a single life annuity with a cash 
refund or 10-year certain feature, the TSP will pay the funds as a death 
benefit to the beneficiary or beneficiaries designated by the 
participant on the annuity portion of the TSP withdrawal request form, 
or as a death benefit in accordance with paragraph (a) of this section 
if no beneficiary designated on the withdrawal request survives the 
participant.
    (3) If the participant requested a joint life annuity without 
additional features, the TSP will pay the funds as a death benefit to 
the joint life annuitant if he or she survives the participant, or as a 
death benefit in accordance with paragraph (a) of this section if the 
joint life annuitant does not survive the participant.
    (4) If the participant requested a joint life annuity with a cash 
refund or 10-year certain feature, the TSP will pay the funds as a death 
benefit to the joint life annuitant if he or she survives the 
participant, or as a death benefit to the beneficiary or beneficiaries 
designated by the participant on the annuity portion of the TSP 
withdrawal request form if the joint life annuitant does not survive the 
participant, or as a death benefit in accordance with paragraph (a) of 
this section if neither the joint life annuitant nor any designated 
beneficiary survives the participant.
    (5) If a participant dies after annuity payments have begun, the 
annuity vendor will make or stop the payments in accordance with the 
annuity method selected.
    (c) TSP loans. If the TSP processes a notice that a participant has 
died, any pending loan disbursement will be cancelled and the funds 
designated for the loan will be distributed as a death benefit in 
accordance with paragraph (a) of this section. If a TSP loan has been 
disbursed, but the check has not been negotiated (or an electronic funds 
transfer (EFT) has been returned), the loan proceeds will be used to pay 
off the loan. If the loan check has been negotiated (or the EFT has been 
processed), the funds cannot be returned to the TSP and the TSP will 
declare the loan balance as a taxable distribution in accordance with 5 
CFR 1655.15.
    (d) Investment of a TSP account upon notice of death. If a 
participant dies with any portion of his or her TSP account in a TSP 
Fund other than the G Fund, the TSP will transfer the entire account 
into the G Fund after it processes a notice that the participant has 
died, or a death code from the participant's employing agency reporting 
the participant's death. The account will accrue earnings at the G Fund 
rate in accordance with 5 CFR part 1645 until it is paid out or a 
beneficiary participant account is established under this part.

[68 FR 35509, June 13, 2003, as amended at 70 FR 32215, June 1, 2005; 80 
FR 52174, Aug. 28, 2015]

[[Page 308]]



Sec.  1651.3  Designation of beneficiary.

    (a) Filing requirements. To designate a beneficiary of a TSP 
account, a participant must complete and file a TSP designation of 
beneficiary form with the TSP record keeper. A participant may designate 
more beneficiaries than the TSP form accommodates by attaching 
additional pages to the TSP designation of beneficiary form in 
accordance with the instructions on the form. A valid TSP designation of 
beneficiary remains in effect until it is properly canceled or changed 
as described in Sec.  1651.4.
    (b) Eligible beneficiaries. Any individual, firm, corporation, or 
legal entity, including the U.S. Government, may be designated as a 
beneficiary. Any number of beneficiaries can be named to share the death 
benefit. A beneficiary may be designated without the knowledge or 
consent of that beneficiary or the knowledge or consent of the 
participant's spouse. A participant may designate a custodian under the 
Uniform Transfers to Minors Act provided that the custodianship is 
established under the laws of the District of Columbia and that the 
participant designates the custodianship using the Agency's designation 
of custodian form.
    (c) Validity requirements. To be valid and accepted by the TSP 
record keeper, a TSP designation of beneficiary form must:
    (1) Be received by the TSP record keeper on or before the date of 
the participant's death;
    (2) Identify the participant in such a manner so that the Agency can 
locate his or her TSP account;
    (3) Be signed and properly dated by the participant and signed and 
properly dated by one witness;
    (i) The participant must either sign the form in the presence of the 
witness or acknowledge his or her signature on the form to the witness;
    (ii) All submitted and attached pages of the form must be signed and 
dated by the participant;
    (iii) All submitted and attached pages of the form must be signed 
and dated by the same witness;
    (iv) A witness must be age 21 or older; and
    (v) A witness designated as a beneficiary will not be entitled to 
receive a death benefit payment; if a witness is the only named 
beneficiary, the designation of the beneficiary is invalid. If more than 
one beneficiary is named, the share of the witness beneficiary will be 
allocated among the remaining beneficiaries pro rata.
    (4) Designate primary beneficiary shares which when summed equal 
100%;
    (5) Contain no substantive alterations (e.g., struck-through shares 
or scratched-out names of beneficiaries);
    (6) Designate each primary and each contingent beneficiary in such a 
manner so that the Agency can identify the individual or entity;
    (7) For each contingent beneficiary, identify the primary 
beneficiary whose share the contingent beneficiary is to receive in the 
event the primary beneficiary dies before payment is made;
    (8) Not attempt to designate beneficiaries for the participant's 
traditional balance and the participant's Roth balance separately; and
    (9) Be received by the TSP record-keeper not more than 365 calendar 
days after the date of the participant's most recent signature.
    (d) Will. A participant cannot use a will to designate a TSP 
beneficiary.

[70 FR 32216, June 1, 2005, as amended at 75 FR 44066, July 28, 2010; 77 
FR 26427, May 4, 2012; 79 FR 38748, July 9, 2014; 79 FR 44261, July 31, 
2014; 82 FR 60105, Dec. 19, 2017]



Sec.  1651.4  How to change or cancel a designation of beneficiary.

    (a) Change. To change a designation of beneficiary, the participant 
must submit to the TSP record keeper a new TSP designation of 
beneficiary form meeting the requirements of Sec.  1651.3 to the TSP 
record keeper. If the TSP receives more than one valid TSP designation 
of beneficiary form, it will honor the form with the latest date signed 
by the participant. A participant may change a TSP beneficiary at any 
time, without the knowledge or consent of any person, including his or 
her spouse.
    (b) Cancellation. A participant may cancel all prior designations of 
beneficiaries by sending the TSP record keeper either a new valid 
designation

[[Page 309]]

of beneficiary form meeting the requirements of Sec.  1651.3, or a 
letter. If the participant uses a letter to cancel a designation of 
beneficiary, it must be signed and witnessed in the same manner as a TSP 
designation of beneficiary form; it must explicitly state that all prior 
designations are canceled; and the TSP record keeper must receive it on 
or before the date of the participant's death.
    (c) Will. A participant cannot use a will to change or cancel a TSP 
designation of beneficiary.

[70 FR 32216, June 1, 2005]



Sec.  1651.5  Spouse of participant.

    (a) For purposes of payment under Sec.  1651.2(a)(2) and 
establishment of beneficiary participant accounts under Sec.  1651.19, 
the spouse of the participant is the person to whom the participant was 
married on the date of death. A person is considered to be married even 
if the parties are separated, unless a court decree of divorce or 
annulment has been entered. The laws of the jurisdiction in which the 
marriage was initially established will be used to determine whether the 
participant was married on the date of death.
    (b) If a person claims to have a marriage at common law with a 
deceased participant, the TSP will pay benefits to the putative spouse 
under Sec.  1651.2(a)(2) in accordance with the marital status shown on 
the most recent Federal income tax return filed by the participant. 
Alternatively, the putative spouse may submit a court order or 
administrative adjudication determining that the common law marriage is 
valid.

[71 FR 9897, Feb. 28, 2006, as amended at 75 FR 78879, Dec. 17, 2010; 78 
FR 57784, Sept. 20, 2013]



Sec.  1651.6  Child or children.

    If the account is to be paid to the child or children, or to 
descendants of deceased children by representation, as provided in Sec.  
1651.2(a)(3), the following rules apply:
    (a) Child. A child includes a natural or adopted child of the 
deceased participant.
    (b) Descendants of deceased children. ``By representation'' means 
that, if a child of the participant dies before the participant, all 
descendants of the deceased child at the same level will equally divide 
the deceased child's share of the participant's account.
    (c) Adoption by another. A natural child of a TSP participant who 
has been adopted by someone other than the participant during the 
participant's lifetime will not be considered the child of the 
participant, unless the adopting parent is the spouse of the TSP 
participant.
    (d) Parentage disputes. If the identity of the father or mother of a 
child is in dispute or otherwise unclear (e.g., only one parent is 
listed on a birth certificate), the purported child must submit to the 
TSP either:
    (1) A court order or other administrative finding establishing 
parentage; or
    (2) Documentation sufficient for establishing parentage under the 
law of the state in which the participant was domiciled at the time of 
death.

[62 FR 32429, June 13, 1997, as amended at 74 FR 63063, Dec. 2, 2009]



Sec.  1651.7  Parent or parents.

    If the account is to be paid to the participant's parent or parents 
under Sec.  1651.2(a)(4), the following rules apply:
    (a) Amount. If both parents are alive at the time of the 
participant's death, each parent will be separately paid fifty percent 
of the account. If only one parent is alive at the time of the 
participant's death, he or she will receive the entire account balance.
    (b) Step-parent. A step-parent is not considered a parent unless the 
step-parent adopted the participant.



Sec.  1651.8  Participant's estate.

    If the account is to be paid to the duly appointed executor or 
administrator of the participant's estate under Sec.  1651.2(a)(5), the 
following rules apply:
    (a) Appointment by court. The executor or administrator must provide 
documentation of court appointment.
    (b) Appointment by operation of law. If state law provides 
procedures for handling small estates, the Board will accept the person 
authorized to dispose of the assets of the deceased participant under 
those procedures as a duly appointed executor or administrator. 
Documentation which demonstrates

[[Page 310]]

that the person is properly authorized under state law must be submitted 
to the TSP record keeper.



Sec.  1651.9  Participant's next of kin.

    If the account is to be paid to the participant's next of kin under 
Sec.  1651.2(a)(6), the next of kin of the participant will be 
determined in accordance with the state law of the participant's 
domicile at the time of death.



Sec.  1651.10  Deceased and non-existent beneficiaries.

    (a) Designated beneficiary dies before participant. The share of any 
designated beneficiary who predeceases the participant will be paid pro 
rata to the participant's other designated beneficiary or beneficiaries. 
If no designated beneficiary survives the participant, the account will 
be paid according to the order of precedence set forth in Sec.  
1651.2(a).
    (b) Trust designated as beneficiary but not in existence. If a 
participant designated a trust or other entity as a beneficiary and the 
entity does not exist on the date of the participant's death, or is not 
created by will or other document that is effective upon the 
participant's death, the amount designated to the entity will be paid in 
accordance with the rules of paragraph (a) of this section, as if the 
trust were a beneficiary that predeceased the participant.
    (c) Non-designated beneficiary dies before participant. If a 
beneficiary other than a beneficiary designated on a TSP designation of 
beneficiary form dies before the participant, the beneficiary's share 
will be paid equally to other living beneficiaries bearing the same 
relationship to the participant as the deceased beneficiary. However, if 
the deceased beneficiary is a child of the participant, payment will be 
made to the deceased child's descendants, if any. If there are no other 
beneficiaries bearing the same relationship or, in the case of children, 
there are no descendants of deceased children, the deceased 
beneficiary's share will be paid to the person(s) next in line according 
to the order of precedence.
    (d) Beneficiary dies after participant but before payment. If a 
beneficiary dies after the participant, the beneficiary's share will be 
paid to the beneficiary's estate. A copy of a beneficiary's certified 
death certificate is required in order to establish that the beneficiary 
has died, and when.

[70 FR 32216, June 1, 2005]



Sec.  1651.11  Simultaneous death.

    If a beneficiary dies at the same time as the participant, the 
beneficiary will be treated as if he or she predeceased the participant 
and the account will be paid in accordance with Sec.  1651.10. The same 
time is considered to be the same hour and minute as indicated on a 
death certificate. If the participant and beneficiary are killed in the 
same event, death is presumed to be simultaneous, unless evidence is 
presented to the contrary.



Sec.  1651.12  Homicide.

    If the participant's death is the result of a homicide, a 
beneficiary will not be paid as long as the beneficiary is under 
investigation by local, state or Federal law enforcement authorities as 
a suspect. If the beneficiary is implicated in the death of the 
participant and the beneficiary would be precluded from inheriting under 
state law, the beneficiary will not be entitled to receive any portion 
of the participant's account. The Board will follow the state law of the 
participant's domicile as that law is set forth in a civil court 
judgment (that, under the law of the state, would protect the Board from 
double liability or payment) or, in the absence of such a judgment, will 
apply state law to the facts after all criminal appeals are exhausted. 
The Board will treat the beneficiary as if he or she predeceased the 
participant and the account will be paid in accordance with Sec.  
1651.10.

[62 FR 32429, June 13, 1997, as amended at 75 FR 44066, July 28, 2010]



Sec.  1651.13  How to apply for a death benefit.

    The TSP has created a paper form that a potential beneficiary must 
use to apply for a TSP death benefit. The TSP must receive this form 
before a death benefit can be paid. Any individual can file this form 
with the TSP

[[Page 311]]

record keeper. The individual submitting the form must attach to the 
form a certified copy of the participant' death certificate. The TSP 
record keeper's acceptance of this form does not entitle the applicant 
to benefits. Please visit http://www.tsp.gov to obtain a copy of this 
form and for the current mailing address for death benefit applications.

[70 FR 32217, June 1, 2005, as amended at 71 FR 50319, Aug. 25, 2006]



Sec.  1651.14  How payment is made.

    (a) Each beneficiary's death benefit will be disbursed pro rata from 
the participant's traditional and Roth balances. The payment from the 
traditional balance will be further pro rated between the tax-deferred 
balance and tax-exempt balance. The payment from the Roth balance will 
be further pro rated between contributions in the Roth balance and 
earnings in the Roth balance. In addition, all death benefits will be 
disbursed pro rata from all TSP Funds in which the deceased 
participant's account is invested. All pro rated amounts will be based 
on the balances in each TSP Fund or source of contributions on the day 
the disbursement is made. Disbursement will be made separately for each 
entitled beneficiary.
    (b) Spouse beneficiaries. The TSP will automatically transfer a 
surviving spouse's death benefit to a beneficiary participant account 
(described in Sec.  1651.19) established in the spouse's name. The TSP 
will not maintain a beneficiary participant account if the balance of 
the beneficiary participant account is less than $200 on the date the 
account is established. The Agency also will not transfer this amount or 
pay it by electronic funds transfer. Instead the spouse will receive an 
immediate distribution in the form of a check.
    (c) Nonspouse beneficiaries. The TSP record keeper will send notice 
of pending payment to each beneficiary. Payment will be sent to the 
address that is provided on the participant's TSP designation of 
beneficiary form unless the TSP receives written notice of a more recent 
address. All beneficiaries must provide the TSP record keeper with a 
taxpayer identification number; i.e., Social Security number (SSN), 
employee identification number (EIN), or individual taxpayer 
identification number (ITIN), as appropriate. The following additional 
rules apply to payments to nonspouse beneficiaries:
    (1) Payment to minor child or incompetent beneficiary. Payment will 
be made in the name of a minor child or incompetent beneficiary. A 
parent or other guardian may direct where the payment should be sent and 
may make any permitted tax withholding election. A guardian of a minor 
child or incompetent beneficiary must submit court documen tation 
showing his or her appointment as guardian.
    (2) Payment to executor or administrator. If payment is to the 
executor or administrator of an estate, the check will be made payable 
to the estate of the deceased participant, not to the executor or 
administrator. A TIN must be provided for all estates.
    (3) Payment to trust. If payment is to a trust, the payment will be 
made payable to the trust and mailed in care of the trustee. A TIN must 
be provided for the trust.
    (4) Payment to inherited IRA on behalf of a nonspouse beneficiary. 
If payment is to an inherited IRA on behalf of a nonspouse beneficiary, 
the check will be made payable to the account. Information pertaining to 
the inherited IRA must be submitted by the IRA trustee. A payment to an 
inherited IRA will be made only in accordance with the rules set forth 
in 5 CFR 1650.25.
    (5) If a death benefit payment is returned as undeliverable, the TSP 
record keeper will attempt to contact the beneficiary. If the 
beneficiary does not respond within 60 days, the TSP will forfeit the 
death benefit payment to the Plan. The beneficiary can claim the 
forfeited funds, although they will not be credited with TSP investment 
returns.
    (6) A properly paid death benefit payment cannot be returned to the 
TSP.

[62 FR 32429, June 13, 1997, as amended at 67 FR 49527, July 30, 2002; 
68 FR 35510, June 13, 2003; 68 FR 74451, Dec. 23, 2003; 70 FR 32217, 
June 1, 2005; 72 FR 53414, Sept. 19, 2007; 75 FR 78879, Dec. 17, 2010; 
77 FR 26427, May 4, 2012]

[[Page 312]]



Sec.  1651.15  Claims referred to the Board.

    (a) Contested claims. Any challenge to a proposed death benefit 
payment must be filed in writing with the TSP record keeper before 
payment. All contested claims will be referred to the Board. The Board 
may also consider issues on its own.
    (b) Payment deferred. No payment will be made until the Board has 
resolved the claim.



Sec.  1651.16  Missing and unknown beneficiaries.

    (a) Locate and identify beneficiaries. (1) The TSP record keeper 
will attempt to identify and locate all potential beneficiaries.
    (2) If a beneficiary is not identified and located, and at least one 
year has passed since the date of the participant's death, the 
beneficiary will be treated as having predeceased the participant and 
the beneficiary's share will be paid in accordance with Sec.  1651.10
    (b) Payment to known beneficiaries. If all potential beneficiaries 
are known but one or more beneficiaries (and not all) appear to be 
missing, payment of part of the participant's account may be made to the 
known beneficiaries. The lost or unidentified beneficiary's share may be 
paid in accordance with paragraph (a) of this section at a later date.
    (c) Abandoned account. If no beneficiaries of the account are 
located, the account will be considered abandoned and the funds will 
revert to the TSP. If there are multiple beneficiaries and one or more 
of them refuses to cooperate in the Board's search for the missing 
beneficiary, the missing beneficiary's share will be considered 
abandoned. In such circumstances, the account can be reclaimed if the 
missing beneficiary is found at a later date. However, earnings will not 
be credited from the date the fund is abandoned. The TSP may require the 
beneficiary to apply for the death benefit with a TSP form and submit 
proof of identity and relationship to the participant.

[62 FR 32429, June 13, 1997, as amended at 70 FR 32217, June 1, 2005]



Sec.  1651.17  Disclaimer of benefits.

    (a) Right to disclaim. The beneficiary of a TSP account may disclaim 
his or her right to receive all or part of a TSP death benefit. If the 
disclaimant is a minor, the parent or guardian of the minor must sign 
the disclaimer.
    (b) Valid disclaimer. The disclaimer must expressly state that the 
beneficiary is disclaiming his or her right to receive either all or a 
stated percentage of the death benefit payable from the TSP account of 
the named participant and must be:
    (1) Submitted in writing;
    (2) Signed or acknowledged, in the presence of a notary, by the 
person (or legal representative) disclaiming the benefit; and
    (3) Received before the TSP pays the death benefit.
    (c) Invalid disclaimer. A disclaimer is invalid if it:
    (1) Is revocable;
    (2) Directs to whom the disclaimed benefit should be paid; or
    (3) Specifies which balance (traditional, Roth, or tax-exempt) is to 
be disclaimed.
    (d) Disclaimer effect. The disclaimed share will be paid as though 
the beneficiary predeceased the participant, according to the rules set 
forth in Sec.  1651.10. Any part of the death benefit which is not 
disclaimed will be paid to the disclaimant pursuant to Sec.  1651.14.

[68 FR 35510, June 13, 2003, as amended at 75 FR 44066, July 28, 2010; 
77 FR 26428, May 4, 2012]



Sec.  1651.18  Payment to one bars payment to another.

    Payment made to a beneficiary(ies) in accordance with this part, 
based upon information received before payment, bars any claim by any 
other person.



Sec.  1651.19  Beneficiary participant accounts.

    A beneficiary participant account may be established only for a 
spouse of a deceased participant who is a sole or partial beneficiary of 
the deceased participant's TSP account. Beneficiary participant accounts 
are subject to the following rules and procedures:

[[Page 313]]

    (a) Initial investment allocation. Regardless of the allocation of 
the deceased participant's account balance at the time of his or her 
death, each beneficiary participant account, once established, will be 
allocated 100 percent to the age-appropriate TSP Lifecycle Fund based on 
the beneficiary participant's date of birth. A beneficiary participant 
may redistribute his or her beneficiary participant account balance 
among the TSP investment funds by making an interfund transfer request 
described in part 1601, subpart C of this chapter.
    (b) Contributions. A beneficiary participant may not make 
contributions or transfers to his or her beneficiary participant 
account. The TSP will not accept a contribution allocation request 
described in part 1601, subpart B of this chapter for a beneficiary 
participant account.
    (c) Required minimum distributions. (1) A beneficiary participant 
must receive required minimum distributions from his or her beneficiary 
participant account commencing no later than the required beginning date 
and, for each year thereafter, no later than December 31.
    (2) A beneficiary participant may elect to withdraw from his or her 
account or to begin receiving payments before the required beginning 
date, but is not required to do so.
    (3) In the event that a beneficiary participant does not withdraw 
from his or her beneficiary participant account an amount sufficient to 
satisfy his or her required minimum distribution for the year, the TSP 
will automatically distribute the necessary amount on or before the 
applicable date described in paragraph (c)(1) of this section.
    (4) The TSP will disburse required minimum distributions described 
in paragraph (c)(3) of this section pro rata from the beneficiary 
participant's traditional balance and the beneficiary participant's Roth 
balance.
    (d) Withdrawal elections. A beneficiary participant may elect any 
withdrawal option is available to separated participants. The provisions 
of Sec.  1650.12, Sec.  1650.13, and Sec.  1650.14 shall apply as if all 
references to a participant are references to a beneficiary participant 
and all references to an account balance are references to a beneficiary 
participant account balance.
    (e) Ineligibility for certain withdrawals. A beneficiary participant 
is ineligible to request the following types of withdrawals from his or 
her beneficiary participant account: Age-based withdrawals described in 
Sec.  1650.31 of this chapter, financial hardship withdrawals described 
in Sec.  1650.32 of this chapter, or loans described in part 1655 of 
this chapter. A beneficiary participant will not be ineligible for a 
partial withdrawal because the deceased participant previously elected 
an age-based withdrawal.
    (f) Spousal rights. The spousal rights described in 5 U.S.C. 8351, 5 
U.S.C. 8435, and Sec.  1650.61 of this chapter do not apply to 
beneficiary participant accounts.
    (g) Transfers. A beneficiary participant may request that the TSP 
transfer all or a portion of an eligible rollover distribution (within 
the meaning of I.R.C. section 402(c)(4)) from his or her beneficiary 
participant account to traditional IRA, Roth IRA or eligible employer 
plan (including a civilian or uniformed services TSP account other than 
a beneficiary participant account). In order to request such a transfer, 
the beneficiary participant must use the transfer form provided by the 
TSP.
    (h) Periodic statements. The TSP will furnish beneficiary 
participants with periodic statements in a manner consistent with part 
1640 of this chapter.
    (i) Privacy Act. Part 1630 of this chapter shall apply with respect 
to a beneficiary participant as if the beneficiary participant is a TSP 
participant.
    (j) Error correction. If, because of an error committed by the Board 
or the TSP record keeper, a beneficiary participant's account is not 
credited or charged with the investment gains or losses the account 
would have received had the error not occurred, the account will be 
credited subject to and in accordance with the rules and procedures set 
forth in Sec.  1605.21. A beneficiary participant may submit a claim for 
correction of Board or TSP record keeper error pursuant to the 
procedures described in Sec.  1605.22.

[[Page 314]]

    (k) Court orders. Court orders relating to a civilian beneficiary 
participant account or uniformed services beneficiary participant 
account shall be processed pursuant to the procedures set forth in part 
1653 of this chapter as if all references to a TSP participant are 
references to a beneficiary participant and all references to a TSP 
account or account balance are references to a beneficiary participant 
account or beneficiary participant account balance. Notwithstanding any 
provision of part 1653, a payee of a court-ordered distribution from a 
beneficiary participant account cannot request a transfer of the court-
ordered distribution to an eligible employer plan or IRA.
    (l) Death of beneficiary participant. To the extent it is not 
inconsistent with this Sec.  1651.19, a beneficiary participant account 
shall be disbursed upon the death of the beneficiary participant in 
accordance with part 1651 as if any reference to a participant is a 
reference to a beneficiary participant. For example, a beneficiary 
participant may designate a beneficiary for his or her beneficiary 
participant account in accordance with Sec.  1651.3 and Sec.  1651.4 of 
this chapter. No individual who is entitled to a death benefit from a 
beneficiary participant account shall be eligible to keep the death 
benefit in the TSP or request that the TSP transfer all or a portion of 
the death benefit to an IRA or eligible employer plan.
    (m) Uniformed services beneficiary participant accounts. Uniformed 
services beneficiary participant accounts are subject to the following 
additional rules and procedures:
    (1) Uniformed services beneficiary participant accounts are 
established and maintained separately from civilian beneficiary 
participant accounts. Beneficiary participants who have a uniformed 
services beneficiary participant account and a civilian beneficiary 
participant account will be issued two separate TSP account numbers. A 
beneficiary participant must file separate interfund transfers and/or 
withdrawal requests for each account and submit separate beneficiary 
designation forms for each account;
    (2) A uniformed services beneficiary participant account and a 
civilian beneficiary participant account cannot be combined;
    (3) If a uniformed services beneficiary participant account contains 
tax-exempt contributions, any payments or withdrawals from the account 
will be distributed pro rata from the tax-deferred balance and the tax-
exempt balance;
    (4) A beneficiary participant may transfer or roll over all or any 
portion of an eligible rollover distribution (within the meaning of 
I.R.C. section 402(c)(4)) from a uniformed services beneficiary 
participant account into a civilian or uniformed services TSP 
participant account. However, tax-exempt money attributable to combat 
zone contributions cannot be transferred from a uniformed services 
beneficiary participant account to a civilian TSP participant account.
    (n) Multiple beneficiary accounts. Each beneficiary participant 
account is maintained separately from all other beneficiary participant 
accounts. If an individual has multiple beneficiary participant 
accounts, each of the individual's beneficiary participant accounts will 
have a unique account number. A beneficiary participant must file 
separate interfund transfers and/or withdrawal requests and submit 
separate beneficiary designation forms for each beneficiary participant 
account that the TSP maintains for him or her. A beneficiary participant 
account cannot be combined with another beneficiary participant account.

[75 FR 78879, Dec. 17, 2010, as amended at 77 FR 26428, May 4, 2012; 80 
FR 52174, Aug. 28, 2015; 84 FR 46423, Sept. 4, 2019]



PART 1653_COURT ORDERS AND LEGAL PROCESSES AFFECTING 
THRIFT SAVINGS PLAN ACCOUNTS--Table of Contents



               Subpart A_Retirement Benefits Court Orders

Sec.
1653.1 Definitions.
1653.2 Qualifying retirement benefits court orders.
1653.3 Processing retirement benefits court orders.
1653.4 Calculating entitlements.

[[Page 315]]

1653.5 Payment.

  Subpart B_Legal Process for the Enforcement of a Participant's Legal 
          Obligations To Pay Child Support or Alimony Currently

1653.11 Definitions.
1653.12 Qualifying legal processes.
1653.13 Processing legal processes.
1653.14 Calculating entitlements.
1653.15 Payment.

                   Subpart C_Child Abuse Court Orders

1653.21 Definitions.
1653.22 Purpose.
1653.23 Processing and payment.

     Subpart D_Process for the Enforcement of a Participant's Legal 
   Obligation To Pay a Federal Tax Levy or Criminal Restitution Order

1653.31 Definitions.
1653.32 Qualifying Federal tax levy.
1653.33 Qualifying criminal restitution order.
1653.34 Processing Federal tax levies and criminal restitution orders.
1653.35 Calculating entitlement.
1653.36 Payment.

    Authority: 5 U.S.C. 8432d, 8435, 8436(b), 8437(e), 8439(a)(3), 8467, 
8474(b)(5) and 8474(c)(1).

    Source: 68 FR 35510, June 13, 2003, unless otherwise noted.



               Subpart A_Retirement Benefits Court Orders



Sec.  1653.1  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this subpart:
    Court means any court of any State, the District of Columbia, the 
Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the 
Virgin Islands, and any Indian court as defined by 25 U.S.C. 1301(3).
    Effective date of a court order means the date it was entered by the 
clerk of the court or, if the order does not show a date entered, the 
date it was filed by the clerk of the court or, if the order does not 
contain a date entered or a date filed, the date it was signed by the 
judge.
    Payment date refers to the date on which earnings are determined and 
is generally two business days prior to the date of an award's 
disbursement.
    Retirement benefits court order or order means a court decree of 
divorce, annulment or legal separation, or a court order or court-
approved property settlement agreement incident to such a decree. Orders 
may be issued at any stage of a divorce, annulment, or legal separation 
proceeding.
    TSP investment earnings or earnings means both positive and negative 
fund performance attributable to differences in TSP fund share prices.

[68 FR 35510, June 13, 2003, as amended at 74 FR 63063, Dec. 2, 2009]



Sec.  1653.2  Qualifying retirement benefits court orders.

    (a) To be qualifying, and thus enforceable against the TSP, a 
retirement benefits court order must meet the following requirements:
    (1) The order must expressly relate to the Thrift Savings Plan 
account of a TSP participant. This means that:
    (i) The order must expressly refer to the ``Thrift Savings Plan'' or 
describe the TSP in such a way that it cannot be confused with other 
Federal Government retirement benefits or non-Federal retirement 
benefits;
    (ii) The order must be written in terms appropriate to a defined 
contribution plan rather than a defined benefit plan. For example, it 
should generally refer to the participant's TSP account or TSP account 
balance rather than a benefit formula or the participant's eventual 
benefits; and
    (iii) If the participant has a civilian TSP account and a uniformed 
services TSP account, the order must expressly identify the account to 
which it relates.
    (2) The order must either require the TSP to freeze the 
participant's account to preserve the status quo pending final 
resolution of the parties' rights to the participant's TSP account, or 
to make a payment from the participant's account to a permissible payee.
    (3) If the order requires a payment from the participant's account, 
the award must be for:
    (i) A specific dollar amount;
    (ii) A stated percentage or fraction of the account; or

[[Page 316]]

    (iii) A survivor annuity as provided in 5 U.S.C. 8435(d).
    (iv) The following examples would qualify to require payment from 
the TSP, although ambiguous or conflicting language used elsewhere could 
cause the order to be rejected.

    Example (1). ORDERED: [payee's name, Social Security number (SSN), 
and address] is awarded $____ from the [civilian or uniformed services] 
Thrift Savings Plan account of [participant's name, account number or 
SSN, and address].
    Example (2). ORDERED: [payee's name, SSN, and address] is awarded 
____% of the [civilian and/or uniformed services] Thrift Savings Plan 
account[s] of [participant's name, account number or SSN, and address] 
as of [date].
    Example (3). ORDERED: [payee's name, SSN, and address] is awarded 
[fraction] of the [civilian and/or uniformed services] Thrift Savings 
Plan account[s] of [participant's name, account number or SSN, and 
address] as of [date].
    Note: The following optional language can be used in conjunction 
with any of the above examples. FURTHER ORDERED: Earnings will be paid 
on the amount of the entitlement under this ORDER until payment is made.

    (4) A court order can require a payment only to a spouse, former 
spouse, child or dependent of a participant.
    (b) The following retirement benefits court orders are not 
qualifying and thus are not enforceable against the TSP:
    (1) An order relating to a TSP account that has been closed;
    (2) An order relating to a TSP account that contains only nonvested 
money, unless the money will become vested within 30 days of the date 
the TSP receives the order if the participant were to remain in 
Government service;
    (3) An order requiring the return to the TSP of money that was 
properly paid pursuant to an earlier court order;
    (4) An order requiring the TSP to make a payment in the future, 
unless the present value of the payee's entitlement can be calculated, 
in which case the TSP will make the payment currently; and
    (5) An order that does not specify the account to which the order 
applies, if the participant has both a civilian TSP account and a 
uniformed services TSP account; and
    (6) An order that requires the TSP to calculate the payee's 
entitlement or earnings in a manner that is inconsistent with Sec.  
1653.4 of this part; and
    (7) An order that designates the TSP Fund, source of contributions, 
or balance (e.g., traditional, Roth, or tax-exempt) from which the 
payment or portions of the payment shall be made.

[68 FR 35510, June 13, 2003, as amended at 69 FR 29851, May 26, 2004; 71 
FR 54893, Sept. 20, 2006; 72 FR 51354, Sept. 7, 2007; 76 FR 78095, Dec. 
16, 2011; 77 FR 26428, May 4, 2012]



Sec.  1653.3  Processing retirement benefits court orders.

    (a) The payment of a retirement benefits court order from the TSP is 
governed solely by FERSA and by the terms of this subpart. The TSP will 
honor retirement benefits court orders properly issued by a court (as 
defined in Sec.  1653.1). However, those courts have no jurisdiction 
over the TSP and the TSP cannot be made a party to the underlying 
domestic relations proceedings.
    (b) The TSP will review a retirement benefits court order to 
determine whether it is enforceable against the TSP only after the TSP 
has received a complete copy of the document. Receipt by an employing 
agency or any other agency of the Government does not constitute receipt 
by the TSP. Retirement benefits court orders should be submitted to the 
TSP record keeper at the current address as provided at http://
www.tsp.gov. Receipt by the TSP record keeper is considered receipt by 
the TSP. To be complete, a court order must be written in English or be 
accompanied by a certified English translation and contain all pages and 
attachments; it must also provide (or be accompanied by a document that 
provides):
    (1) The participant's account number or Social Security number 
(SSN);
    (2) The name and last known mailing address of each payee covered by 
the order; and
    (3) The payee's SSN and state of legal residence if he or she is the 
current or former spouse of the participant.
    (c) As soon as practicable after the TSP receives a document that 
purports to be a qualifying retirement benefits court order, whether or 
not complete,

[[Page 317]]

the participant's account will be frozen. After the account is frozen, 
no withdrawal or loan disbursements (other than a required minimum 
distribution pursuant to section 401(a)(9) of the Internal Revenue Code, 
26 U.S.C. 401(a)(9)) will be allowed until the account is unfrozen. All 
other account activity will be permitted.
    (d) The following documents do not purport to be qualifying 
retirement benefits court orders, and accounts of participants to whom 
such orders relate will not be frozen:
    (1) A document that does not indicate on its face (or is not 
accompanied by a document that establishes) that it has been issued or 
approved by a court;
    (2) A court order relating to a TSP account that has been closed;
    (3) A court order dated before June 6, 1986;
    (4) A court order that does not award all or any part of the TSP 
account to someone other than the participant; and
    (5) A court order that does not mention retirement benefits.
    (e) After the participant's account is frozen, the TSP will review 
the document further to determine if it is complete; if the document is 
not complete, the TSP will request a complete document. If a complete 
copy is not received within 30 days of that request, the account will be 
unfrozen and no further action will be taken with respect to the 
document.
    (f) The TSP will review a complete copy of an order to determine 
whether it is a qualifying retirement benefits court order as described 
in Sec.  1653.2. The TSP will mail a decision letter to all parties 
containing the following information:
    (1) A determination regarding whether the court order is qualifying;
    (2) A statement of the applicable statutes and regulations;
    (3) An explanation of the effect the court order has on the 
participant's TSP account; and
    (4) If the qualifying order requires payment, the letter will 
provide:
    (i) An explanation of how the payment will be calculated and an 
estimated amount of payment;
    (ii) The anticipated date of payment;
    (iii) Tax information and income tax withholding forms to the person 
responsible for paying Federal income tax on the payment;
    (iv) Information and the form needed to transfer the payment to an 
eligible employer plan, traditional IRA, or Roth IRA (if the payee is 
the current or former spouse of the participant); and
    (v) Information and the form needed to receive the payment through 
an electronic funds transfer (EFT).
    (g) The TSP decision letter is a final determination of the parties' 
rights in the account. There is no administrative appeal from the TSP 
decision.
    (h) An account frozen under this section will be unfrozen as 
follows:
    (1) If the account was frozen upon receipt of an incomplete order, 
the account will be unfrozen if a complete order is not received within 
30 days of the date of the request described in paragraph (e) of this 
section;
    (2) If the account was frozen in response to an order issued to 
preserve the status quo pending final resolution of the parties' rights 
to the participant's TSP account, the account will be unfrozen if the 
TSP receives a court order that vacates or supersedes the previous order 
(unless the order vacating or superseding the order itself qualifies to 
place a freeze on the account). A court order that purports to require a 
payment from the TSP supersedes an order issued to preserve the status 
quo, even if it does not qualify to require a payment from the TSP;
    (3) If the account was frozen in response to an order purporting to 
require a payment from the TSP, the freeze will be lifted:
    (i) Once payment is made, if the court order is qualifying; or
    (ii) Forty-five (45) days after the date of the TSP decision letter 
if the court order is not qualifying. The 45-day period will be 
terminated, and the account will be unfrozen, if both parties submit to 
the TSP a written request for such a termination.
    (i) The TSP will hold in abeyance the processing of a court-ordered 
payment if the TSP is notified in writing that the underlying court 
order has been appealed, and that the effect of the filing

[[Page 318]]

of the appeal is to stay the enforceability of the order.
    (1) In the notification, the TSP must be provided with proper 
documentation of the appeal and citations to legal authority, which 
address the effect of the appeal on the enforceability of the underlying 
court order.
    (i) If the TSP receives proper documentation and citations to legal 
authority which demonstrate that the underlying court order is not 
enforceable, the TSP will inform the parties that the payment will not 
occur until resolution of the appeal, and the account will remain frozen 
for loans and withdrawals.
    (ii) In the absence of proper documentation and citations to legal 
authority, the TSP will presume that the provisions relating to the TSP 
in the court order remain valid and will proceed with the payment 
process.
    (2) The TSP must be notified in writing of the disposition of the 
appeal before the freeze will be removed from the participant's account 
or a payment will be made. The notification must include a complete copy 
of an order from the appellate court explaining the effect of the appeal 
on the participant's account.
    (j) Multiple qualifying court orders relating to the same TSP 
account and received by the TSP will be processed as follows:
    (1) If the orders make awards to the same payee or payees and do not 
indicate that the awards are cumulative, the TSP will only honor the 
order bearing the latest effective date.
    (2) If the orders relate to different former spouses of the 
participant and award survivor annuities, the TSP will honor them in the 
order of their effective dates.
    (3) If the orders relate to different payees and award fixed dollar 
amounts, percentages or fractions of an account, or portions of an 
account calculated by the application of formulae, the orders will be 
honored:
    (i) In the order of their receipt by the TSP, if received by the TSP 
on different days; or
    (ii) In the order of their effective dates, if received by the TSP 
on the same day.
    (4) In all other cases, the TSP will honor multiple qualifying court 
orders relating to the same TSP account in the order of their receipt by 
the TSP.

[68 FR 35510, June 13, 2003, as amended at 69 FR 29851, May 26, 2004; 71 
FR 50320, Aug. 25, 2006; 72 FR 51354, Sept. 7, 2007; 77 FR 26428, May 4, 
2012]



Sec.  1653.4  Calculating entitlements.

    (a) For purposes of computing the amount of a payee's entitlement 
under this section, a participant's TSP account balance will include any 
loan balance outstanding as of the date used for calculating the payee's 
entitlement, unless the court order provides otherwise.
    (b) If the court order awards a percentage or fraction of an account 
as of a specific date, the payee's entitlement will be calculated based 
on the account balance as of that date. If the date specified in the 
order is not a business day, the TSP will use the participant's account 
balance as of the last preceding business day.
    (c) If the court order awards a percentage or fraction of an account 
but does not contain a specific date as of which to apply that 
percentage or fraction, the TSP will use the effective date of the 
order.
    (d) If the court order awards a specific dollar amount, the payee's 
entitlement will be the lesser of:
    (1) The dollar amount stated in the court order; or
    (2) The vested account balance on the date of disbursement.
    (e) If a court order describes a payee's entitlement in terms of a 
fixed dollar amount and a percentage or fraction of the account, the TSP 
will pay the fixed dollar amount, even if the percentage or fraction, 
when applied to the account balance, would yield a different result.
    (f) The payee's entitlement will be credited with TSP investment 
earnings as described:
    (1) The entitlement calculated under this section will not be 
credited with TSP investment earnings unless the court order 
specifically provides otherwise.
    (2) If earnings are awarded and a rate is specified, the rate must 
be expressed as an annual percentage rate or as a

[[Page 319]]

per diem dollar amount added to the payee's entitlement.
    (3) If earnings are awarded and the rate is not specified, the 
Agency will calculate the amount to be awarded by:
    (i) Determining the payee's award amount (e.g., the percentage or 
fraction of the participant's account);
    (ii) Determining, based on the participant's investment allocation 
as of the date used to calculate the entitlement, the number and 
composition of shares that the payee's award amount would have purchased 
as of the date used to calculate the entitlement.
    (iii) Multiplying the price per share as of the payment date by the 
number and composition of shares calculated in paragraph (f)(3)(ii) of 
this section.
    (g) The TSP will estimate the amount of a payee's entitlement when 
it prepares the court order decision letter and will recalculate the 
entitlement at the time of payment. The recalculation may differ from 
the initial estimation because:
    (1) The estimation of the payee's entitlement includes both vested 
and nonvested amounts in the participant's account. If, at the time of 
payment, the nonvested portion of the account has not become vested, the 
recalculated entitlement will apply only to the participant's vested 
account balance;
    (2) After the estimate of the payee's entitlement is prepared, the 
TSP may process account transactions that have an effective date on or 
before the date used to compute the payee's entitlement. Those 
transactions will be included when the payee's entitlement is 
recalculated at the time of payment; and
    (3) The amount available for payment from the account may be reduced 
due to changes in share price (i.e., investment losses).

[68 FR 35510, June 13, 2003, as amended at 74 FR 63063, Dec. 2, 2009; 76 
FR 78095, Dec. 16, 2011]



Sec.  1653.5  Payment.

    (a) Payment date. Payment pursuant to a qualifying retirement 
benefits court order will generally be made:
    (1) 60 days after the date of the TSP decision letter when the payee 
is the current or former spouse of the participant. The payee can 
request to receive the payment sooner than 60 days, but in no event 
earlier than 30 days after the date of the TSP decision letter, if:
    (i) The payee makes a tax withholding election, requests payment by 
EFT, or requests a transfer of all or a portion of the payment to a 
traditional IRA, Roth IRA, or eligible employer plan (the TSP decision 
letter will provide the forms a payee must use to choose one of these 
payment options); and
    (ii) Either the court order does not make an award to multiple 
payees or, if it does, each of the multiple payee requests expedited 
payment.
    (2) Within 30 days of the date of the TSP decision letter when the 
payee is someone other than the current or former spouse of the 
participant.
    (b) In no case will payment exceed the participant's vested account 
balance, minus any outstanding loan balance.
    (c) The entire amount of a court order payee's entitlement must be 
disbursed at one time. A series of payments will not be made, even if 
the court order provides for such a method of payment. A payment 
pursuant to a court order extinguishes all rights to any further payment 
under that order, even if the entire amount of the entitlement cannot be 
paid. Any further award must be contained in a separate court order.
    (d) Payment will be made pro rata from the participant's traditional 
and Roth balances. The distribution from the traditional balance will be 
further pro rated between the tax-deferred balance and tax-exempt 
balance. The payment from the Roth balance will be further pro rated 
between contributions in the Roth balance and earnings in the Roth 
balance. In addition, all payments will be distributed pro rata from all 
TSP Funds in which the participant's account is invested. All pro rated 
amounts will be based on the balances in each fund or source of 
contributions on the day the disbursement is made. The TSP will not 
honor provisions of a court order that require payment to be made from a 
specific TSP Fund, source of contributions, or balance.

[[Page 320]]

    (e) Payment will be made only to the person or persons specified in 
the court order. However, if the court order specifies a third-party 
mailing address for the payment, the TSP will mail to the address 
specified any portion of the payment that is not transferred to a 
traditional IRA, Roth IRA, or eligible employer plan.
    (f) Payment will not be made jointly to two or more persons. If the 
court order requires payments to more than one person, the order must 
separately indicate the amount to be paid to each.
    (g) If there are insufficient funds to pay each court order payee, 
payment will be made as follows:
    (1) If the order specifies an order of precedence for the payments, 
the TSP will honor it.
    (2) If the order does not specify an order of precedence for the 
payments, the TSP will pay a current or former spouse first and a 
dependent second.
    (h) If the payee dies before a payment is disbursed, payment will be 
made to the estate of the payee, unless otherwise specified by the court 
order. A distribution to the estate of a deceased court order payee will 
be reported as income to the decedent's estate. If the participant dies 
before payment is made, the order will be honored so long as it is 
submitted to the TSP before the TSP account has been closed.
    (i) If the parties to a divorce or annulment have remarried each 
other, or a legal separation is terminated, a new court order will be 
required to prevent payment pursuant to a previously submitted 
qualifying retirement benefits court order.
    (j) Payment to a person (including the estate of the payee) pursuant 
to a qualifying retirement benefits court order made in accordance with 
this subpart bars recovery by any other person claiming entitlement to 
the payment.
    (k) If a court ordered payment is returned as undeliverable, the TSP 
record keeper will attempt to locate the payee by writing to his or her 
TSP database address. If the payee does not respond within 60 days, the 
TSP will forfeit the funds to the Plan. The payee can claim the 
forfeited funds, although they will not be credited with TSP investment 
fund returns.
    (l) A properly paid court order payment cannot be returned to the 
TSP.
    (m) A payee who is a current or former spouse of the participant may 
elect to transfer a court-ordered payment to a traditional IRA, eligible 
employer plan, or Roth IRA. Any election permitted by this paragraph (m) 
must be made pursuant to the rules described in 5 CFR 1650.25.
    (n) If the TSP maintains an account (other than a beneficiary 
participant account) for a court order payee who is the current or 
former spouse of the participant, the payee can request that the TSP 
transfer the court-ordered payment to the payee's TSP account in 
accordance with the rules described in 5 CFR 1650.25. However, any pro 
rata share attributable to tax-exempt contributions cannot be 
transferred; instead it will be paid directly to the payee.

[68 FR 35510, June 13, 2003, as amended at 68 FR 74451, Dec. 23, 2003; 
70 FR 32217, June 1, 2005; 74 FR 63063, Dec. 2, 2009; 76 FR 30510, May 
26, 2011; 76 FR 78095, Dec. 16, 2011; 77 FR 26428, May 4, 2012; 83 FR 
47547, Sept. 20, 2018]



  Subpart B_Legal Process for the Enforcement of a Participant's Legal 
          Obligations To Pay Child Support or Alimony Currently



Sec.  1653.11  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this subpart:
    Alimony means the payment of funds for the support and maintenance 
of a spouse or former spouse. Alimony includes separate maintenance, 
alimony pendente lite, maintenance, and spousal support. Alimony can 
also include attorney fees, interest, and court costs, but only if these 
items are expressly made recoverable by qualifying legal process, as 
described in Sec.  1653.12.
    Child support means payment of funds for the support and maintenance 
of a child or children of the participant. Child support includes 
payments to provide for health care, education, recreation, clothing, or 
to meet other specific needs of a child or children. Child support can 
also include attorney

[[Page 321]]

fees, interest, and court costs, but only if these items are expressly 
made recoverable by qualifying legal process, as described in Sec.  
1653.12.
    Competent authority means a court or an administrative agency of 
competent jurisdiction in any State, territory or possession of the 
United States; a court or administrative agency of competent 
jurisdiction in any foreign country with which the United States has 
entered into an agreement that requires the United States to honor the 
process; or an authorized official pursuant to an order of such a court 
or an administrative agency of competent jurisdiction pursuant to state 
or local law.
    Legal process means a writ, order, summons, or other similar process 
in the nature of a garnishment, which is brought to enforce a 
participant's legal obligations to pay child support or alimony 
currently.

[68 FR 35510, June 13, 2003, as amended at 76 FR 78095, Dec. 16, 2011]



Sec.  1653.12  Qualifying legal processes.

    (a) The TSP will only honor the terms of a legal process that is 
qualifying under paragraph (b) of this section.
    (b) A legal process must meet each of the following requirements to 
be considered qualifying:
    (1) A competent authority must have issued the legal process;
    (2) The legal process must expressly relate to the Thrift Savings 
Plan account of a TSP participant, as described in Sec.  1653.2(a)(1);
    (3) The legal process must require the TSP to:
    (i) Pay a stated dollar amount from a participant's TSP account; or
    (ii) Freeze the participant's account in anticipation of an order to 
pay from the account.
    (c) The following legal processes are not qualifying:
    (1) A legal process relating to a TSP account that has been closed;
    (2) A legal process relating to a TSP account that contains only 
nonvested money, unless the money will become vested within 30 days of 
the date the TSP receives the order if the participant were to remain in 
Government service;
    (3) A legal process requiring the return to the TSP of money that 
was properly paid pursuant to an earlier legal process;
    (4) A legal process requiring the TSP to make a payment in the 
future; and
    (5) A legal process requiring a series of payments.
    (6) A legal process that designates the specific TSP Fund, source of 
contributions, or balance from which the payment or portions of the 
payment shall be made.

[68 FR 35510, June 13, 2003, as amended at 77 FR 26429, May 4, 2012]



Sec.  1653.13  Processing legal processes.

    (a) The payment of legal processes from the TSP is governed solely 
by the Federal Employees' Retirement System Act, 5 U.S.C. chapter 84, 
and by the terms of this subpart. Although the TSP will honor legal 
processes properly issued by a competent authority, those entities have 
no jurisdiction over the TSP and the TSP cannot be made a party to the 
underlying proceedings.
    (b) The TSP will review a legal process to determine whether it is 
enforceable against the TSP only after the TSP has received a complete 
copy of the document. Receipt by an employing agency or any other agency 
of the Government does not constitute receipt by the TSP. Legal 
processes should be submitted to the TSP record keeper at the current 
address as provided at http://www.tsp.gov. Receipt by the TSP record 
keeper is considered receipt by the TSP. To be complete, a legal process 
must contain all pages and attachments; it must also provide (or be 
accompanied by a document that provides):
    (1) The participant's account number or Social Security number 
(SSN);
    (2) The name and last known mailing address of each payee covered 
under the order; and
    (3) The SSN and state of legal residence of the payee if he or she 
if the current or former spouse of the participant.
    (c) As soon as practicable after the TSP receives a document that 
purports to be a qualifying legal process, whether or not complete, the 
participant's account will be frozen. After the account is frozen, no 
withdrawal or loan

[[Page 322]]

disbursements will be allowed until the account is unfrozen. All other 
account activity will be permitted, including contributions, loan 
repayments, adjustments, contribution allocations and interfund 
transfers.
    (d) The following documents will not be treated as purporting to be 
a qualifying legal processes, and accounts of participants to whom such 
orders relate will not be frozen:
    (1) A document that does not indicate on its face (or accompany a 
document that establishes) that it has been issued by a competent 
authority;
    (2) A legal process relating to a TSP account that has been closed; 
and
    (3) A legal process that does not relate either to the TSP or to the 
participant's retirement benefits.
    (e) After the participant's account is frozen, the TSP will review 
the document further to determine if it is complete; if the document is 
not complete, the TSP will request a complete document. If a complete 
copy is not received by the TSP within 30 days of that request, the 
account will be unfrozen and no further action will be taken with 
respect to the document.
    (f) As soon as practicable after receipt of a complete copy of a 
legal process, the TSP will review it to determine whether it is a 
qualifying legal process as described in Sec.  1653.12. The TSP will 
mail a decision letter to all parties containing the same information 
described at Sec.  1653.3(f).
    (g) The TSP decision letter is final. There is no administrative 
appeal from the TSP decision.
    (h) An account frozen under this section will be unfrozen as 
follows:
    (1) If a complete document has not been received within 30 days of 
the date of a request described in paragraph (e) of this section;
    (2) If the account was frozen pursuant to a legal process requiring 
the TSP to freeze the participant's account in anticipation of an order 
to pay from the account, the account will be unfrozen if any one of the 
following events occurs:
    (i) As soon as practicable after the TSP receives a complete copy of 
an order vacating or superseding the preliminary order (unless the order 
vacating or superseding the preliminary order qualifies to place a 
freeze on the account);
    (ii) Upon payment pursuant to the order to pay from the account, if 
the TSP determines that the order is qualifying; or
    (iii) As soon as practicable after the TSP issues a decision letter 
informing the parties that the order to pay from the account is not a 
qualifying legal process;
    (3) If the account was frozen after the TSP received a document that 
purports to be a legal process requiring payment from the participant's 
account, the account will be unfrozen:
    (i) Upon payment pursuant to a qualifying legal process; or
    (ii) As soon as practicable after the TSP informs the parties that 
the document is not a qualifying legal process.
    (i) The TSP will hold in abeyance the processing of a payment 
required by legal process if the TSP is notified in writing that the 
legal process has been appealed, and that the effect of the filing of 
the appeal is to stay the enforceability of the legal process. The 
notification must be accompanied by the documentation and citations to 
legal authority described at Sec.  1653.3(i).
    (j) Multiple qualifying legal processes relating to the same TSP 
account and received by the TSP will be processed as follows:
    (1) If the legal processes make awards to the same payee or payees 
and do not indicate that the awards are cumulative, the TSP will only 
honor the legal process bearing the latest effective date.
    (2) If the legal processes relate to different payees, the legal 
process will be honored:
    (i) In the order of their receipt by the TSP, if received by the TSP 
on different days; or
    (ii) In the order of their effective dates, if received by the TSP 
on the same day.

[68 FR 35510, June 13, 2003, as amended at 71 FR 50320, Aug. 25, 2006; 
72 FR 51354, Sept. 7, 2007]



Sec.  1653.14  Calculating entitlements.

    A qualifying legal process can only require the payment of a 
specified dollar amount from the TSP. Payment pursuant to a qualifying 
legal process

[[Page 323]]

will be calculated in accordance with Sec.  1653.4(a), (d), (f) and (g).



Sec.  1653.15  Payment.

    Payment pursuant to a qualifying legal process will be made in 
accordance with Sec.  1653.5.



                   Subpart C_Child Abuse Court Orders



Sec.  1653.21  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this subpart:
    Child means an individual less than 18 years of age.
    Judgment against a participant for physically, sexually, or 
emotionally abusing a child means any legal claim perfected through a 
final enforceable judgment which is based in whole or in part upon the 
physical, sexual, or emotional abuse of a child, whether or not that 
abuse is accompanied by other actionable wrongdoing, such as sexual 
exploitation or gross negligence.



Sec.  1653.22  Purpose.

    Under 5 U.S.C. 8437(e)(3) and 8467(a)(2), the TSP will honor a court 
order or other similar process in the nature of a garnishment that is 
brought to enforce a judgment against a participant for physically, 
sexually, or emotionally abusing a child.



Sec.  1653.23  Processing and payment.

    To the maximum extent consistent with sections 8437(e)(3) and 
8467(a)(2), child abuse court orders will be processed by the TSP under 
the procedures described in subparts A and B of this part.



     Subpart D_Process for the Enforcement of a Participant's Legal 
   Obligation To Pay a Federal Tax Levy or Criminal Restitution Order

    Source: 79 FR 53604, Sept. 10, 2014, unless otherwise noted.



Sec.  1653.31  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this subpart:
    Criminal restitution order means a complete copy of a judgment in a 
criminal case issued by a federal court ordering restitution for a crime 
under 18 U.S.C. 3663A.
    Enforcement letter means a letter received from the Department of 
Justice requesting a payment from a participant's TSP account to enforce 
a criminal restitution order.

[79 FR 53604, Sept. 10, 2014, as amended at 80 FR 52605, Sept. 1, 2015]



Sec.  1653.32  Qualifying Federal tax levy.

    (a) The TSP will only honor the terms of a tax levy that is 
qualifying under paragraph (b) of this section.
    (b) A tax levy must meet each of the following requirements to be 
considered qualifying:
    (1) The Internal Revenue Service issued the levy.
    (2) The levy includes a signature certifying that it attaches to a 
retirement plan.
    (3) The levy requires the TSP to pay a stated dollar amount from a 
TSP participant's account.
    (4) The levy is dated no earlier than thirty (30) days before 
receipt.
    (5) The levy is issued in the name of the participant only.
    (6) The levy expressly refers to the ``Thrift Savings Plan'' or 
describes the TSP in such a way that it cannot be confused with other 
Federal Government retirement benefits or non-Federal retirement 
benefits.
    (c) The following levies will not be considered qualifying:
    (1) A levy relating to a TSP account with a zero dollar account 
balance;
    (2) A levy relating to a TSP account that contains only nonvested 
money, unless the money will become vested within 30 days of the date 
the TSP receives the order if the participant were to remain in 
Government service;
    (3) A levy requiring the TSP to make a payment at a specified date 
in the future;

[[Page 324]]

    (4) A levy that does not contain a signature certifying that it 
applies to retirement plans;
    (5) A levy requiring a series of payments;
    (6) A levy that designates the specific TSP Fund, source of 
contributions, or balance from which the payment or portions of the 
payment shall be made.



Sec.  1653.33  Qualifying criminal restitution order.

    (a) The TSP will only honor the terms of a criminal restitution 
order that is qualifying under paragraph (b) of this section.
    (b) A criminal restitution order must meet each of the following 
requirements to be considered qualifying:
    (1) The restitution must be ordered in the sentencing of the 
participant as required by 18 U.S.C. 3663A and 18 U.S.C. 3664.
    (2) The criminal restitution order must require the participant to 
pay a stated dollar amount as restitution.
    (3) The criminal restitution order must be accompanied by an 
enforcement letter that states the restitution is ordered under 18 
U.S.C. 3663A. The enforcement letter must expressly refer to the 
``Thrift Savings Plan'' or describe the TSP in such a way that it cannot 
be confused with other Federal Government retirement benefits or non-
Federal retirement benefits.
    (c) The following orders will not be considered qualifying:
    (1) A criminal restitution order relating to a TSP account with a 
zero dollar account balance;
    (2) A criminal restitution order relating to a TSP account that 
contains only nonvested money, unless the money will become vested 
within 30 days of the date the TSP receives the order if the participant 
were to remain in Government service;
    (3) A criminal restitution order accompanied by an enforcement 
letter that requires the TSP to make a payment in the future;
    (4) A forfeiture order related to a monetary garnishment of funds;
    (5) A criminal restitution order accompanied by an enforcement 
letter that requires TSP to make a series of payments;
    (6) A criminal restitution order accompanied by an enforcement 
letter that designates the specific TSP Fund, source of contributions, 
or balance from which the payment or portions of the payment shall be 
made.

[79 FR 53604, Sept. 10, 2014, as amended at 80 FR 52605, Sept. 1, 2015]



Sec.  1653.34  Processing Federal tax levies and criminal restitution orders.

    (a) The payment of tax levies and criminal restitution orders from 
the TSP is governed solely by the Federal Employees' Retirement Systems 
Act, 5 U.S.C. chapter 84, and by the terms of this subpart. Although the 
TSP will honor tax levies or criminal restitution orders properly 
issued, those entities have no jurisdiction over the TSP and the TSP 
cannot be made a party to the underlying proceedings.
    (b) The TSP will review a tax levy or criminal restitution order to 
determine whether it is enforceable against the TSP only after it has 
received a complete copy of the document. Receipt by an employing agency 
or any other agency of the Government does not constitute receipt by the 
TSP. Tax levies and criminal restitution orders should be submitted to 
the TSP record keeper at the current address as provided at http://
www.tsp.gov. Receipt by the TSP record keeper is considered receipt by 
the TSP. To be complete, a tax levy or criminal restitution order must 
meet all the requirements of Sec.  1653.32 or Sec.  1653.33; it must 
also provide (or be accompanied by a document or enforcement letter that 
provides):
    (1) The participant's TSP account number or Social Security number 
(SSN); and
    (2) The name and mailing address of the payee.
    (c) As soon as practicable after the TSP receives a document that 
purports to be a qualifying tax levy or criminal restitution order, the 
participant's account will be frozen. After the participant's account is 
frozen, no withdrawal or loan disbursements will be allowed until the 
account is unfrozen. All other account activity will be permitted, 
including contributions, loan repayments, adjustments, contribution 
allocations and interfund transfers. Once a disbursement from the 
account is made

[[Page 325]]

in accordance with the restitution order or levy, the hold will be 
removed from the participant's account.
    (d) As soon as practicable after receipt of a complete copy of a tax 
levy or criminal restitution order, the TSP will review it to determine 
whether it is qualifying as described in Sec.  1653.32 or Sec.  1653.33. 
The TSP will mail a decision letter to all parties containing the 
following information:
    (1) A determination regarding whether the restitution order or levy 
is qualifying;
    (2) A statement of the applicable statutes and regulations;
    (3) An explanation of the effect the restitution order or levy has 
on the participant's TSP account; and
    (4) If the qualifying restitution order or levy requires payment, 
the letter will provide:
    (i) An explanation of how the payment will be calculated and an 
estimated amount of payment;
    (ii) The anticipated date of payment.
    (e) The TSP decision letter is final. There is no administrative 
appeal from the TSP decision.

[79 FR 53604, Sept. 10, 2014, as amended at 80 FR 52606, Sept. 1, 2015]



Sec.  1653.35  Calculating entitlement.

    A tax levy or criminal restitution order can only require the 
payment of a stated dollar amount from the TSP. The payee's entitlement 
will be the lesser of:
    (a) The dollar amount stated in the tax levy or enforcement letter; 
or
    (b) The vested account balance on the date of disbursement, minus 
any outstanding loan balance.

[79 FR 53604, Sept. 10, 2014, as amended at 80 FR 52606, Sept. 1, 2015]



Sec.  1653.36  Payment.

    (a) Payment pursuant to a qualifying tax levy or criminal 
restitution order will be made 30 days after the TSP decision letter.
    (b) In no case will payment exceed the participant's calculated 
entitlement.
    (c) The entire amount of a criminal restitution order or tax levy 
entitlement must be disbursed at one time. A series of payments will not 
be made. A payment pursuant to a criminal restitution order or tax levy 
extinguishes all rights to any further payment under that order or tax 
levy, even if the entire amount of the entitlement cannot be paid. Any 
further award must be contained in a separate criminal restitution order 
or tax levy.
    (d) If a participant has funds in more than one type of account, 
payment will be made from each account in the following order, until the 
amount required by the tax levy or stated in the enforcement letter is 
reached:
    (1) Civilian account;
    (2) Uniformed services account;
    (3) Beneficiary participant account.
    (e) Payment will be made pro rata from the participant's traditional 
and Roth balances. The distribution from the traditional balance will be 
further pro rated between the tax-deferred balance and tax-exempt 
balance. The payment from the Roth balance will be further pro rated 
between contributions in the Roth balance and earnings in the Roth 
balance. In addition, all payments will be distributed pro rata from all 
TSP Funds in which the participant's account is invested. All pro rated 
amounts will be based on the balances in each fund or source of 
contributions on the day the disbursement is made.
    (f) The payment is taxable to the participant and is subject to 
Federal income tax withholding. The tax withholding will be taken from 
the payee's entitlement and the gross amount of the payment (i.e., the 
net payment distributed to the payee plus the amount withheld from the 
payment for taxes) will be reported to the IRS as income to the 
participant.
    (g) A properly paid tax levy or restitution order cannot be returned 
to the TSP.
    (h) The TSP will not hold a payment pending appeal of a criminal 
restitution order or the underlying conviction. The TSP will treat the 
criminal restitution order as a final judgment pursuant to 18 U.S.C. 
3664(o) and process payment as provided by this subpart.

[79 FR 53604, Sept. 10, 2014, as amended at 80 FR 52606, Sept. 1, 2015]

[[Page 326]]



PART 1655_LOAN PROGRAM--Table of Contents



Sec.
1655.1 Definitions.
1655.2 Eligibility for loans.
1655.3 Information concerning the cost of a loan.
1655.4 Number of loans.
1655.5 Loan repayment period.
1655.6 Amount of loan.
1655.7 Interest rate.
1655.8 Quarterly statements.
1655.9 Effect of loans on individual account.
1655.10 Loan application process.
1655.11 Loan acceptance.
1655.12 Loan agreement.
1655.13 Loan approval and issuance.
1655.14 Loan payments.
1655.15 Taxable distributions.
1655.16 Reamortization.
1655.17 Prepayment.
1655.18 Spousal rights.
1655.19 Effect of court order on loan.
1655.20 Residential loans.
1655.21 Loan fee.

    Authority: 5 U.S.C. 8432d, 8433(g), 8439(a)(3) and 8474.

    Source: 68 FR 35515, June 13, 2003, unless otherwise noted.



Sec.  1655.1  Definitions.

    (a) Definitions generally applicable to the Thrift Savings Plan are 
set forth at 5 CFR 1690.1.
    (b) As used in this part:
    Amortization means the reduction in a loan by periodic payments of 
principal and interest according to a schedule of payments.
    Date of application means the day on which the TSP record keeper 
receives the loan application, either electronically or on the TSP Web 
site or on a paper TSP form.
    General purpose loan means any TSP loan other than a loan for the 
purchase or construction of a primary residence.
    Guaranteed funds means a cashier's check, money order, certified 
check (i.e., a check certified by the financial institution on which it 
is drawn), cashier's draft, or treasurer's check from a credit union.
    Loan issue date means the date on which the TSP record keeper 
disburses funds from the participant's account for the loan amount.
    Loan repayment period means the time over which payments that are 
required to repay a loan in full are scheduled.
    Principal or principal amount means the amount borrowed by a 
participant from his or her individual account, or, after 
reamortization, the amount financed.
    Reamortization means the recalculation of periodic payments of 
principal and interest.
    Residential loan means a TSP loan for the purchase or construction 
of a primary residence.
    Taxable distribution means the amount of outstanding principal and 
interest on a loan which must be reported to the Internal Revenue 
Service as taxable income as a result of the failure of a participant to 
repay a loan in full, according to the terms of the loan agreement.

[68 FR 35515, June 13, 2003, as amended at 70 FR 32217, June 1, 2005]



Sec.  1655.2  Eligibility for loans.

    A participant can apply for a TSP general purpose or residential 
loan if:
    (a) More than 60 calendar days have elapsed since the participant 
has repaid in full a TSP loan of the same type.
    (b) The participant is in pay status;
    (c) The participant is eligible to contribute to the TSP (or would 
be eligible to contribute but for the suspension of the participant's 
contributions because he or she obtained a financial hardship in-service 
withdrawal);
    (d) The participant has at least $1,000 in employee contributions 
and attributable earnings in his or her account; and
    (e) The participant has not had a TSP loan declared a taxable 
distribution within the last 12 months for any reason other than a 
separation from Government service.
    Paragraph (b) of this section shall not apply to loan requests made 
during a Government shutdown by participants who are furloughed or 
excepted from furlough due to the Government shutdown.

[84 FR 1601, Feb. 5, 2019]



Sec.  1655.3  Information concerning the cost of a loan.

    Information concerning the cost of a loan is provided in the booklet 
TSP Loan Program (available on the TSP

[[Page 327]]

Web site, from the participant's personnel office or service, or from 
the TSP record keeper). From this information, a participant can 
determine the effects of a loan on his or her final account balance and 
can compare the cost of a loan to that of other sources of financing.



Sec.  1655.4  Number of loans.

    A participant may have no more than two loans outstanding from his 
or her TSP account at any time. One of the two outstanding loans may be 
a residential loan and the other one may be a general purpose loan. A 
participant with both a civilian TSP account and a uniformed services 
TSP account may have two outstanding loans from each account.

[68 FR 35515, June 13, 2003, as amended at 69 FR 29852, May 26, 2004]



Sec.  1655.5  Loan repayment period.

    (a) Minimum. The minimum repayment period a participant may request 
for a loan is one year of scheduled payments.
    (b) Maximum. The maximum repayment period a participant may request 
for a general purpose loan is five years of scheduled payments. The 
maximum repayment period a participant may request for a residential 
loan is 15 years of scheduled payments.



Sec.  1655.6  Amount of loan.

    (a) Minimum amount. The initial principal amount of any loan may not 
be less than $1,000.
    (b) Maximum amount. The principal amount of a new loan must be less 
than or equal to the smallest of the following:
    (1) The portion of the participant's individual account balance that 
is attributable to employee contributions and attributable earnings (not 
including any outstanding loan principal);
    (2) 50 percent of the participant's vested account balance 
(including any outstanding loan balance) or $10,000, whichever is 
greater, minus any outstanding loan balance; or
    (3) $50,000 minus the participant's highest outstanding loan balance 
(if any) during the last 12 months.
    (c) If a participant has both a civilian TSP account and a uniformed 
services TSP account, the maximum loan amount available will be based on 
a calculation that takes into consideration the account balances and 
outstanding loan balances for both accounts.



Sec.  1655.7  Interest rate.

    (a) Except as provided in paragraph (b) of this section, loans will 
bear interest at the monthly G Fund interest rate established by the 
Department of the Treasury in effect on the date the TSP record keeper 
processes the paper application or on the date the request is entered on 
the TSP Web site.
    (b) The interest rate calculated under this section remains fixed 
until the loan is repaid, unless a civilian participant informs the TSP 
record keeper that he or she entered into active duty military service, 
and, as a result, requests that the interest rate on a loan issued 
before entry into active duty military service be reduced to an annual 
rate of 6 percent for the period of such service. The civilian 
participant must provide the record keeper with the beginning and ending 
dates of active duty military service.



Sec.  1655.8  Quarterly statements.

    Information relating to any outstanding loan will be included on the 
quarterly participant statements.



Sec.  1655.9  Effect of loans on individual account.

    (a) The amount borrowed will be removed from the participant's 
account when the loan is disbursed. Consequently, these funds will no 
longer generate earnings.
    (b) The loan principal will be disbursed from that portion of the 
account represented by employee contributions and attributable earnings, 
pro rata from each TSP Fund in which the account is invested and pro 
rata from tax-deferred and tax-exempt balances.
    (c) The loan principal will be disbursed pro rata from the 
participant's traditional and Roth balances. The disbursement from the 
traditional balance will be further pro rated between the tax-deferred 
balance and tax-exempt balance. The disbursement from the Roth balance 
will be further pro

[[Page 328]]

rated between contributions in the Roth balance and earnings in the Roth 
balance. In addition, all loan disbursements will be distributed pro 
rata from all TSP Funds in which the participant's account is invested. 
All pro rated amounts will be based on the balances in each TSP Fund or 
source of contributions on the day the disbursement is processed.
    (d) Loan payments, including both principal and interest, will be 
credited to the participant's individual account. Loan payments will be 
credited to the appropriate TSP Fund in accordance with the 
participant's most recent contribution allocation. Loan payments will be 
credited to the participant's traditional and Roth balances in the same 
proportion that the loan was distributed from the participant's account.

[68 FR 35515, June 13, 2003, as amended at 70 FR 32218, June 1, 2005; 77 
FR 26429, May 4, 2012]



Sec.  1655.10  Loan application process.

    (a) Any participant may apply for a loan by submitting a completed 
TSP loan application form to the TSP record keeper.
    (b) The following participants may also apply for and complete a 
loan request on the TSP Web site:
    (1) FERS participants or members of the uniformed services 
requesting a general purpose loan if they are:
    (i) Unmarried; or
    (ii) Married and have been granted an exception to the spousal 
requirements described in Sec.  1655.18.
    (2) CSRS participants requesting a general purpose loan if they are:
    (i) Unmarried;
    (ii) Married and provide a current address for their spouse; or
    (iii) Married and have been granted an exception to the spousal 
requirements described in Sec.  1655.18.
    (c) Persons not described in paragraph (b) of this section may use 
the TSP Web site to submit a loan application and obtain a loan 
agreement, but must complete the process by submitting the resulting 
loan agreement and any related documentation on paper.
    (d) If the TSP maintains a uniformed services account and a civilian 
account for an individual, a separate loan application must be made for 
each account.

[68 FR 35515, June 13, 2003, as amended at 70 FR 32218, June 1, 2005; 77 
FR 26429, May 4, 2012]



Sec.  1655.11  Loan acceptance.

    The TSP record keeper will reject a loan application if:
    (a) The participant is not qualified to apply for a loan under Sec.  
1655.2 or has failed to provide all required information on the loan 
application;
    (b) The participant has the maximum number of loans outstanding 
under Sec.  1655.4;
    (c) The participant has a pending loan agreement or in-service 
withdrawal request;
    (d) The amount of the requested loan is less than the minimum amount 
set forth in Sec.  1655.6(a);
    (e) A hold has been placed on the account pursuant to 5 CFR 
1653.3(c); or
    (f) The participant has received a taxable loan distribution from 
the TSP within the 12-consecutive-month period preceding the date of the 
application, unless the taxable distribution was the result of the 
participant's failure to repay the loan upon his or her separation from 
Government service.

[68 FR 35515, June 13, 2003, as amended at 69 FR 29852, May 26, 2004]



Sec.  1655.12  Loan agreement.

    (a) Upon determining that a loan application meets the requirements 
of this part, the TSP record keeper will provide the participant with 
the terms and conditions of the loan, as follows:
    (1) If the participant submits a paper loan application, the TSP 
record keeper will mail the loan agreement, and other information as 
appropriate, to the participant.
    (2) If the participant initiates a loan request on the TSP Web site, 
which cannot be completed on the Web site, the participant must print 
the partially completed loan agreement directly from the Web site, 
provide any missing information (including spouse's signature or 
documents supporting a residential loan request, if applicable), and 
submit it to the TSP record keeper.
    (b) By signing the loan agreement, either electronically or on the 
form, the

[[Page 329]]

participant agrees to be bound by all of its terms and conditions, 
agrees to repay the loan by payroll deduction, and certifies, under 
penalty of perjury, to the truth and completeness of all statements made 
in the loan application and loan agreement to the best of his or her 
knowledge.
    (c) For loans submitted on paper and those that cannot be completed 
on the TSP Web site, the TSP record keeper must receive the completed 
loan agreement (including any required supporting documentation) before 
the expiration date stated on the loan agreement or the agreement will 
not be processed.
    (d) The signed loan agreement must be accompanied by:
    (1) In the case of a residential loan, supporting materials that 
document the purchase or construction of the residence and the amount 
requested (as described in Sec.  1655.20); and
    (2) Any other information that the Executive Director may require.
    (e) A participant may request that the loan be disbursed by direct 
deposit to a checking or savings account maintained by the participant 
in a financial institution by properly completing the required 
information on the loan agreement or on the TSP Web site, if the loan 
request can be completed on the Web site.

[68 FR 35515, June 13, 2003, as amended at 70 FR 32218, June 1, 2005]



Sec.  1655.13  Loan approval and issuance.

    (a) When the completed loan agreement is signed electronically or 
returned by the participant to the TSP record keeper, together with any 
documentation required to be submitted, the loan will be initially 
approved or denied by the TSP record keeper based upon the requirements 
of this part, including the following conditions:
    (1) The participant has signed the promise to repay the loan, has 
agreed to repay the loan through payroll deductions, and has certified 
that the information given is true and complete to the best of the 
participant's knowledge;
    (2) Processing of the loan would not be prohibited by Sec.  1655.19 
relating to court orders;
    (3) The spouse of a FERS or uniformed services participant has 
consented to the loan or, if the spouse's whereabouts are unknown or 
exceptional circumstances make it inappropriate to secure the spouse's 
consent, an exception to the spousal requirement described in Sec.  
1655.18 has been granted;
    (4) The spouse of a CSRS participant has been given notice or, if 
the spouse's whereabouts are unknown, an exception to the spousal 
requirement described in Sec.  1655.18 has been granted;
    (5) When a paper agreement is required, the completed loan 
agreement, including all required supporting documentation, was received 
by the TSP record keeper before the expiration date specified on the 
loan agreement; and
    (6) The participant has met any other conditions that the Executive 
Director may require.
    (b) If approved, the loan will be issued unless:
    (1) The participant's employing agency has reported the 
participant's separation from Government service;
    (2) The TSP receives written notice that the participant has died;
    (3) The participant's account balance on the loan issue date does 
not contain sufficient employee contributions and associated earnings to 
make a loan of at least $1,000;
    (4) A hold on the account is processed before the loan is disbursed; 
or
    (5) A taxable distribution on an outstanding loan is declared before 
the new loan is issued.
    (c) If the loan is otherwise acceptable but the amount available to 
borrow is less than the requested amount (but is at least $1,000), the 
loan will be issued in the maximum amount available at the time of the 
disbursement. In such a case, the periodic payment amount will remain 
the same and the loan term may be shortened.
    (d) The loan issue date is considered to be the date the loan was 
made.
    (e) If a loan disbursement is returned as undeliverable, the TSP 
record keeper will attempt to locate the participant. If the participant 
does not respond within 60 days, the TSP will repay the loan with the 
returned loan proceeds.

[[Page 330]]



Sec.  1655.14  Loan payments.

    (a) Loan payments must be made through payroll deduction in 
accordance with the loan agreement. Once loan payments begin, the 
employing agency cannot terminate the payroll deductions at the 
employee's request, unless the TSP instructs it to do so.
    (b) The participant may make additional payments by mailing a 
personal check or guaranteed funds to the TSP record keeper. If the TSP 
receives a payment that repays the outstanding loan amount and overpays 
the loan by $10.00 or more, the overpayment will be refunded to the 
participant. Overpayments of less than $10 will be applied to the 
participant's account and will not be refunded. If a loan overpayment 
refund is returned as undeliverable, the TSP record keeper will attempt 
to locate the participant. If the participant does not respond within 60 
days, the TSP will forfeit the overpayment refund to the Plan. The 
participant can claim the forfeited funds, although they will not be 
credited with TSP investment fund returns.
    (c) The initial payment on a loan is due on or before the 60th day 
following the loan issue date. Interest accrues on the loan from the 
date of issuance.
    (d) Subsequent payments are due at regular intervals as prescribed 
in the loan agreement, or most recent amortization, according to the 
participant's pay cycle.
    (e) If a payment is not made when due, the TSP will notify the 
participant of the missed payment and the participant must make up the 
payment in full. If the participant does not make up all missed payments 
by the end of the calendar quarter following the calendar quarter in 
which the first payment was missed, the TSP will declare the loan to be 
a taxable distribution in accordance with Sec.  1655.15. The 
participant's make-up payment must be in the form of a personal check or 
guaranteed funds.
    (f) Interest will accrue on all missed payments and will be included 
in the calculation of any taxable distribution subsequently declared in 
accordance with Sec.  1655.15. Interest will also accrue on payments 
missed while a participant is in nonpay status.

[68 FR 35515, June 13, 2003, as amended at 72 FR 53414, Sept. 19, 2007]



Sec.  1655.15  Taxable distributions.

    (a) The Board may declare any unpaid loan principal, plus unpaid 
interest, to be a taxable distribution from the Plan if:
    (1) A participant is in a confirmed nonpay status for a period of 
one year or more, has not advised the TSP that he or she is serving on 
active military duty, and payments are not resumed after the participant 
is notified the loan has been reamortized;
    (2) A participant separates from Government service and does not 
repay the outstanding loan principal and interest in full within the 
period specified by the notice to the participant from the TSP record 
keeper explaining the participant's repayment options;
    (3) The TSP record keeper advises the participant that there are 
missing payments and the participant fails to make (by personal check or 
guaranteed funds) a direct payment of the entire missing amount or 
repayment in full by the deadline established in accordance with Sec.  
1655.14(e);
    (4) Any material information provided in accordance with Sec.  
1655.10, Sec.  1655.12, or Sec.  1655.18 is found to be false;
    (5) With the exception of a loan described in 5 CFR 1620.45, the 
loan is not repaid in full (including interest due) within five years, 
in the case of a general purpose loan, or within 15 years, in the case 
of a residential loan, from the loan issue date; or
    (6) The participant dies.
    (b) If a taxable distribution occurs in accordance with paragraph 
(a) of this section, the Board will notify the participant of the amount 
and date of the distribution. The Board will report the distribution to 
the Internal Revenue Service as income for the year in which it occurs.
    (c) If a participant dies and a taxable distribution occurs in 
accordance with paragraph (a) of this section, the Board will notify the 
participant's estate of the amount and date of the distribution. Neither 
the estate nor any other person, including a beneficiary, may

[[Page 331]]

repay the loan of a deceased participant, nor can the funds be returned 
to the TSP.
    (d) If, because of Board or TSP record keeper error, a TSP loan is 
declared a taxable distribution under circumstances that make such a 
declaration inconsistent with this part, or inconsistent with other 
procedures established by the Board or TSP record keeper in connection 
with the TSP loan program, the taxable distribution will be reversed. 
The participant will be provided an opportunity to reinstate loan 
payments or repay in full the outstanding balance on the loan.

[68 FR 35515, June 13, 2003, as amended at 68 FR 74451, Dec. 23, 2003; 
72 FR 53414, Sept. 19, 2007; 77 FR 26429, May 4, 2012]



Sec.  1655.16  Reamortization.

    (a) A participant may request reamortization of a loan at any time 
to change the amount of the payments, unless the loan is in a default 
status.
    (b) Upon reamortization, the outstanding principal balance remains 
the same. Any accrued interest is paid off first before payments are 
applied to principal and current interest.
    (c) The interest rate on a reamortized loan will be the same as the 
interest rate on the original loan.
    (d) A participant may request reamortization by using the TSP Web 
site or by contacting a TSPSO participant service representative.
    (e) When a participant's pay cycle changes for any reason, he or she 
should request a reamortization to adjust the scheduled payment to an 
equivalent amount in the new pay cycle. If the new pay cycle results in 
fewer payments per year and the participant does not reamortize the 
loan, the loan may be declared a taxable distribution pursuant to Sec.  
1655.15(a)(3).



Sec.  1655.17  Prepayment.

    (a) A participant may repay a loan in full, without a penalty, at 
any time before the declaration of a taxable distribution under Sec.  
1655.15, unless the participant has separated from Government service 
and has submitted a signed statement that he or she has forfeited the 
right to repay the loan in full. Repayment in full means receipt by the 
TSP record keeper of a payment, by personal check or guaranteed funds 
made payable to the Thrift Savings Plan, of all principal and interest 
due on the loan.
    (b) If a participant returns a loan check to the TSP record keeper, 
it will be treated as a repayment; however, additional interest may be 
owed, which, if not paid, could result in a taxable distribution. The 
loan, even though repaid, will also be taken into account in determining 
the maximum amount available for future loans, in accordance with Sec.  
1655.6(b).
    (c) The amount outstanding on a loan can be obtained from the TSP 
Web site, the ThriftLine, or a TSPSO participant service representative, 
or by a written request to the TSP record keeper.



Sec.  1655.18  Spousal rights.

    (a) Spouse of CSRS participant. (1) Before a loan is disbursed to a 
CSRS participant, the TSP record keeper will send a notice to the 
participant's current spouse that the participant has applied for a 
loan.
    (2) A CSRS participant may obtain an exception to the requirement 
described in paragraph (a)(1) of this section if the participant 
establishes, to the satisfaction of the Executive Director, that the 
spouse's whereabouts are unknown as described in paragraph (c) of this 
section.
    (b) Spouse of FERS or uniformed services participant. (1) Before a 
loan agreement is approved for a FERS or uniformed services participant, 
the spouse must consent to the loan by signing the loan agreement.
    (2) A FERS or uniformed services participant may obtain an exception 
to the requirement described in paragraph (b)(1) of this section if the 
participant establishes, to the satisfaction of the Executive Director, 
that:
    (i) The spouse's whereabouts are unknown; or
    (ii) Exceptional circumstances prevent the participant from 
obtaining the spouse's consent.
    (c) Exception to spousal requirements. The procedures for obtaining 
an exception to the spousal requirements described in paragraphs (a)(1) 
and (b)(1) of this section are the same as the procedures described in 5 
CFR part 1650, subpart G.

[[Page 332]]

    (d) Certification of truthfulness. (1) By signing the loan 
application and the loan agreement, electronically or on paper, the 
participant certifies, under penalty of perjury, that all information 
provided to the TSP during the loan process is true and complete, 
including statements concerning the participant's marital status, the 
spouse's address at the time the application is filed, or the current 
spouse's consent to the loan.
    (2) If the Board receives a written allegation from the spouse that 
the participant may have misrepresented his or her marital status or the 
spouse's address (in the case of a CSRS participant), or that the 
signature of the spouse of a FERS participant was forged, the Board will 
submit the information or document in question to the spouse and request 
that he or she state in writing that the information is false or that 
the spouse's signature was forged. In the event of an alleged forgery, 
the Board will also request the spouse to provide at least three samples 
of his or her signature.
    (3) If the spouse affirms the allegation, in accordance with the 
procedure set forth in paragraph (d)(2) of this section, and the loan 
has been disbursed, the Board will give the participant an opportunity 
to repay the unpaid loan principal and interest within 60 days. If the 
loan is repaid during this period, the Board will not investigate the 
spouse's allegation.
    (4) Paragraph (d)(3) of this section will not apply if the 
participant has received a final divorce decree before the Thrift 
Savings Plan receives the funds.
    (5) If the unpaid loan principal and interest are not repaid to the 
Plan in full within the time period provided in paragraph (d)(3) of this 
section, the Board will conduct an investigation into the allegation. If 
the participant has received a final divorce decree before the Thrift 
Savings Plan receives the funds, the Board will begin its investigation 
immediately.
    (6) If, during its investigation, the Board finds evidence to 
suggest that the participant misrepresented his or her marital status or 
spouse's address (in the case of a CSRS participant), or submitted the 
loan agreement with a forged signature, the Board will refer the case to 
the Department of Justice for criminal prosecution and, if the 
participant is still employed, to the Inspector General or other 
appropriate authority in the participant's employing agency for 
administrative action.
    (7) Upon receipt of an allegation described in paragraph (d)(2) of 
this section, the participant's account will be frozen and no loan will 
be permitted until after:
    (i) Thirty (30) days have elapsed since the participant's spouse was 
sent a copy of the information or document in question, and the Board 
has received no written affirmation of the alleged false information or 
forgery (together with signature samples, if required);
    (ii) The loan is repaid pursuant to paragraph (d)(3) of this 
section;
    (iii) The Executive Director concludes that the Board's 
investigation did not yield persuasive evidence that supports the 
spouse's allegation;
    (iv) The Executive Director has been assured in writing by the 
spouse that any future request for a loan or withdrawal comports with 
the applicable requirement of notice or consent; or
    (v) The participant is divorced.

[68 FR 35515, June 13, 2003, as amended at 68 FR 74451, Dec. 23, 2003]



Sec.  1655.19  Effect of court order on loan.

    Upon receipt of a document that purports to be a qualifying 
retirement benefits court order, qualifying legal process relating to a 
participant's legal obligation to provide child support or to make 
alimony payments, or a qualifying child abuse order, the participant's 
TSP account will be frozen. After the account is frozen, no loan will be 
allowed until the account is unfrozen. The Board's procedures for 
processing court orders and legal processes are explained in 5 CFR part 
1653.



Sec.  1655.20  Residential loans.

    (a) A residential loan will be made only for the purchase or 
construction of the primary residence of the participant, or for the 
participant and his or her spouse, and for related purchase costs. The 
participant must actually bear all or part of the cost of the purchase. 
If the participant purchases a primary residence with someone other than 
his or her spouse, only the portion

[[Page 333]]

of the purchase costs that is borne by the participant will be 
considered in making the loan. A residential loan will not be made for 
the purpose of paying off an existing mortgage or otherwise providing 
financing for a primary residence purchased more than 2 years before the 
date of the loan application.
    (b) The participant's primary residence is his or her principal 
residence. A primary residence may include a house, a townhouse, a 
condominium, a share in a cooperative housing corporation, a mobile 
home, a boat, or a recreational vehicle; a primary residence does not 
include a second home or vacation home. A participant cannot have more 
than one primary residence.
    (c) Purchase of a primary residence means acquisition of the 
residence through the exchange of cash or other property or through the 
total construction of a new residence. A residential loan will not be 
made for a lease-to-buy option, unless the option to buy is being 
exercised. Construction of an addition to or the renovation of a 
residence or the purchase of land only does not constitute the purchase 
of a primary residence.
    (d) Related purchase costs are any costs that are incurred directly 
as a result of the purchase or construction of a residence and which can 
be added to the basis of the residence for Federal tax purposes. Points 
or loan origination fees charged for a loan, whether or not they are 
treated as part of the basis, are not considered a purchase cost. Real 
estate taxes cannot be included.
    (e) The documentation required for a loan under this section is as 
follows:
    (1) For all purchases, except for construction, a copy of a home 
purchase contract or a settlement sheet; or
    (2) For construction, a home construction contract. If a single home 
construction contract is unavailable, other contracts, building permits, 
receipts, assessments, or other documentation that demonstrates the 
construction of an entire primary residence and expenses in the amount 
of the loan may be accepted at the discretion of the Executive Director.
    (f) The documentation provided under this section must:
    (1) Be from a third party;
    (2) Show the participant as the purchaser or builder;
    (3) Show the purchase price or construction price;
    (4) Show the full address of the residence; and
    (5) Bear a date that is no more than 24 months preceding the 
expiration date of the loan agreement.



Sec.  1655.21  Loan fee.

    The TSP will charge a participant a $50.00 loan fee when it 
disburses the loan and will deduct the fee from the proceeds of the 
loan.

[69 FR 29852, May 26, 2004]



PART 1690_THRIFT SAVINGS PLAN--Table of Contents



                            Subpart A_General

Sec.
1690.1 Definitions.

                         Subpart B_Miscellaneous

1690.11 Plan year.
1690.12 Power of attorney.
1690.13 Guardianship and conservatorship orders.
1690.14 Checks made payable to the Thrift Savings Plan
1690.15 Freezing an account--administrative holds.

    Authority: 5 U.S.C. 8474.

    Source: 68 FR 35519, June 13, 2003, unless otherwise noted.



                            Subpart A_General



Sec.  1690.1  Definitions.

    As used in this chapter:
    Account or individual account means the account established for a 
participant in the Thrift Savings Plan under 5 U.S.C. 8439(a). The TSP 
offers four types of accounts: civilian participant accounts, uniformed 
services accounts, civilian beneficiary participant accounts, and 
uniformed services beneficiary participant accounts. Each type of 
account may contain a traditional balance, a Roth balance, or both.
    Account balance means the sum of the dollar balances for each source 
of contributions in each TSP Fund for an individual account. The dollar 
balance in each fund on a given day is the product of the total number 
of shares in that

[[Page 334]]

fund multiplied by the share price for the fund on that day.
    Agency Automatic (1%) Contributions means any contributions made 
under 5 U.S.C. 8432(c)(1) and (c)(3). It also includes service automatic 
(1%) contributions made under 5 U.S.C. 8440e(e)(3)(A).
    Agency Matching Contributions means any contributions made under 5 
U.S.C. 8432(c)(2). It also includes service matching contributions under 
5 U.S.C. 8440e(e)(3)(B).
    Basic pay means basic pay as defined in 5 U.S.C. 8331(3). For CSRS 
and FERS employees, it is the rate of pay used in computing any amount 
the individual is otherwise required to contribute to the Civil Service 
Retirement and Disability Fund as a condition of participating in the 
Civil Service Retirement System or the Federal Employees' Retirement 
System, as the case may be. For members of the uniformed services, it is 
basic pay payable under 37 U.S.C. 204 and compensation received under 37 
U.S.C. chapter 206.
    Beneficiary participant means a spouse beneficiary for whom the TSP 
maintains a beneficiary participant account pursuant to 5 U.S.C. 8433(e) 
and in accordance with 5 CFR 1651.19.
    Beneficiary participant account means an account maintained pursuant 
to 5 U.S.C. 8433(e) and in accordance with 5 CFR 1651.19. The term 
includes both civilian beneficiary participant accounts and uniformed 
services beneficiary participant accounts.
    Board means the Federal Retirement Thrift Investment Board 
established under 5 U.S.C. 8472.
    Bonus contributions means contributions made by a participant from 
any part of any special or incentive pay that the participant receives 
under chapter 5 of title 37.
    BRS means the blended retirement system as established by the 
National Defense Authorization Act for FY 2016, Public Law 114-92, secs. 
631-635 (2015).
    BRS participant means a TSP participant covered by BRS.
    C Fund means the Common Stock Index Investment Fund established 
under 5 U.S.C. 8438(b)(1)(C).
    Catch-up contributions means TSP contributions from basic pay that 
are made by participants age 50 and over, which exceed the elective 
deferral limit of 26 U.S.C. 402(g) and meet the requirements of 5 CFR 
1600.23.
    Civilian account means a TSP account to which contributions have 
been made by or on behalf of a civilian employee.
    Civilian beneficiary participant account means a beneficiary 
participant account that is established with a death benefit payment 
from a TSP account to which contributions were made by or on behalf of a 
civilian employee.
    Civilian employee or civilian participant means a TSP participant 
covered by the Federal Employees' Retirement System, the Civil Service 
Retirement System, or equivalent retirement plan.
    Contribution allocation means the participant's apportionment of his 
or her future contributions, loan payments, and transfers or rollovers 
from eligible employer plans or traditional IRAs among the TSP Funds.
    Contribution election means a request by an employee to start 
contributing to the TSP, to change the amount or type of contributions 
(traditional or Roth) made to the TSP each pay period, or to terminate 
contributions to the TSP.
    Court of competent jurisdiction means the court of any state, the 
District of Columbia, the Commonwealth of Puerto Rico, Guam, the 
Northern Mariana Islands, or the Virgin Islands, and any Indian court as 
defined by 25 U.S.C. 1301(3).
    CSRS means the Civil Service Retirement System established by 5 
U.S.C. chapter 83, subchapter III, or any equivalent Federal retirement 
system.
    CSRS employee or CSRS participant means any employee or participant 
covered by CSRS.
    Date of appointment means the effective date of an employee's 
accession as established by the current employing agency.
    Day means calendar day, unless otherwise stated.
    Eligible employer plan means a plan qualified under I.R.C. section 
401(a) (26 U.S.C. 401(a)), including a section 401(k) plan, profit-
sharing plan, defined benefit plan, stock bonus plan, and money purchase 
plan; an annuity plan described in I.R.C. section 403(a) (26 U.S.C. 
403(a)); an annuity contract described in I.R.C. section 403(b) (26

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U.S.C. 403(b)); and an eligible deferred compensation plan described in 
I.R.C. section 457(b) (26 U.S.C. 457(b)) which is maintained by an 
eligible employer described in I.R.C. section 457(e)(1)(A) (26 U.S.C. 
457(e)(1)(A)).
    Employee contributions means traditional contributions and Roth 
contributions. Employee contributions are made at the participant's 
election pursuant to Sec.  1600.12 and are deducted from compensation 
paid to the employee.
    Employer contributions means Agency Automatic (1%) Contributions 
under 5 U.S.C. 8432(c)(1), 8432(c)(3), or 5 U.S.C. 8440e(e)(3)(A) and 
Agency Matching Contributions under 5 U.S.C. 8432(c)(2) or 5 U.S.C. 
8440e(e)(3)(B).
    Employing agency means the organization (or the payroll office that 
services the organization) that employs an individual eligible to 
contribute to the TSP and that has authority to make personnel 
compensation decisions for the individual. It includes the employing 
service for members of the uniformed services.
    Executive Director means the Executive Director of the Federal 
Retirement Thrift Investment Board under 5 U.S.C. 8474.
    F Fund means the Fixed Income Investment Fund established under 5 
U.S.C. 8438(b)(1)(B).
    Federal civilian retirement system means the Civil Service 
Retirement System established by 5 U.S.C. chapter 83, subchapter III, 
the Federal Employees' Retirement System established by 5 U.S.C. chapter 
84, or any equivalent Federal civilian retirement system.
    FERS means the Federal Employees' Retirement System established by 5 
U.S.C. chapter 84 or any equivalent Federal retirement system.
    FERS employee or FERS participant means any employee or TSP 
participant covered by FERS.
    FERSA means the Federal Employees' Retirement System Act of 1986 
(FERSA), Public Law 99-335, 100 Stat. 514. The provisions of FERSA that 
govern the TSP are codified primarily in subchapters III and VII of 
Chapter 84 of Title 5, United States Code.
    Former spouse means (as defined at 5 U.S.C. 8401(12)) the former 
spouse of a TSP participant if the participant performed at least 18 
months of civilian service creditable under 5 U.S.C. 8411 as an employee 
or member, and if the participant and former spouse were married to one 
another for at least nine months.
    G Fund means the Government Securities Investment Fund established 
under 5 U.S.C. 8438(b)(1)(A).
    G Fund interest rate means the interest rate computed under 5 U.S.C. 
8438(e)(2).
    I Fund means the International Stock Index Investment Fund 
established under 5 U.S.C. 8438(b)(1)(E).
    In-service withdrawal request means a properly completed withdrawal 
election for either an age-based in-service withdrawal or a financial 
hardship in-service withdrawal, on any form required by the TSP, 
together with the supporting documentation required by the application.
    PEBD means the pay entry base date (or pay entry basic date for some 
services), which is determined by each uniformed service and is used to 
calculate how much time in service a member has for the purpose of 
determining longevity pay rates.
    Plan participant or participant means any person with an account 
(other than a beneficiary participant account) in the Thrift Savings 
Plan or who would have an account (other than a beneficiary account) but 
for an employing agency error.
    Post-employment withdrawal request means a properly completed 
withdrawal election on any form required by the TSP in order for a 
participant to elect a post-employment withdrawal of his or her account 
balance.
    Posting means the process of crediting or debiting transactions to 
an individual account.
    Posting date means the date on which a transaction is credited or 
debited to a participant's account.
    Ready Reserve means those members of the uniformed services 
described at 10 U.S.C. 10142.
    Regular employee contributions mean TSP contributions from taxable 
basic pay that are subject to the Internal Revenue Code limits on 
elective deferrals and contributions to qualified plans (26 U.S.C. 
402(g) and 415(c), respectively), and the maximum contribution 
percentage limits of 5 U.S.C.

[[Page 336]]

8351(b), 5 U.S.C. 8432(a), or 5 U.S.C. 8440f(a).
    Roth 5 year non-exclusion period means the period of five 
consecutive calendar years beginning on the first day of the calendar 
year in which the participant's Roth initiation date occurs. It is the 
period described in section 402A(d)(2)(B) of the Internal Revenue Code.
    Roth balance means the sum of:
    (1) Roth contributions and associated earnings; and
    (2) Amounts transferred to the TSP from a Roth account maintained by 
an eligible employer plans and earnings on those amounts.
    Roth contributions means employee contributions made to the 
participant's Roth balance which are authorized by 5 U.S.C. 8432d. Roth 
contributions may be deducted from taxable pay on an after-tax basis or 
from pay exempt from taxation under 26 U.S.C. 112.
    Roth initiation date means
    (1) The earlier of:
    (i) The actual date of a participant's first Roth contribution to 
the TSP;
    (ii) The ``as of'' date or attributable pay date (as defined in 
Sec.  1605.1 of this subchapter) that established the date of the 
participant's first Roth contribution to the TSP; or
    (iii) The date used, by a plan from which the participant directly 
transferred Roth money into the TSP, to measure the participant's Roth 
five year non-exclusion period.
    (2) If a participant has a civilian account and a uniformed services 
account, the Roth initiation date for both accounts will be the same.
    Roth IRA means an individual retirement plan described in Internal 
Revenue Code section 408A (26 U.S.C. 408A).
    S Fund means the Small Capitalization Stock Index Investment Fund 
established under 5 U.S.C. 8438(b)(1)(D).
    Separation from Government service means generally the cessation of 
employment with the Federal Government. For civilian employees it means 
termination of employment with the U.S. Postal Service or with any other 
employer from a position that is deemed to be Government employment for 
purposes of participating in the TSP for 31 or more full calendar days. 
For uniformed services members, it means the discharge from active duty 
or the Ready Reserve or the transfer to inactive status or to a retired 
list pursuant to any provision of title 10 of the United States Code. 
The discharge or transfer may not be followed, before the end of the 31-
day period beginning on the day following the effective date of the 
discharge, by resumption of active duty, an appointment to a civilian 
position covered by the Federal Employees' Retirement System, the Civil 
Service Retirement System, or an equivalent retirement system, or 
continued service in or affiliation with the Ready Reserve. Reserve 
component members serving on full-time active duty who terminate their 
active duty status and subsequently participate in the drilling reserve 
are said to continue in the Ready Reserve. Active component members who 
are released from active duty and subsequently participate in the 
drilling reserve are said to affiliate with the Ready Reserve.
    Share means a portion of a TSP Fund. Transactions are posted to 
accounts in shares at the share price of the date the transaction is 
posted. The number of shares for a transaction is calculated by dividing 
the dollar amount of the transaction by the share price of the 
appropriate date for the fund in question. The number of shares is 
computed to four decimal places.
    Share price means the value of a share in a TSP Fund. The share 
price is calculated separately for each fund for each business day. The 
share price includes the cumulative net earnings or losses for each fund 
through the date the share price is calculated.
    Source of contributions means traditional contributions, Roth 
contributions, Agency Automatic (1%) Contributions, or matching 
contributions. All amounts in a participant's account are attributed to 
one of these four sources. Catch-up contributions, transfers, rollovers, 
and loan payments are included in the traditional contribution source or 
the Roth contribution source.
    Special or incentive pay means pay payable as special or incentive 
pay under 37 U.S.C. chapter 5.
    Spouse means the person to whom a TSP participant is married on the 
date he or she signs a form on which the

[[Page 337]]

TSP requests spousal information. Where a participant is seeking to 
reclaim an account that has been forfeited pursuant to 5 CFR 1650.16, 
spouse means the person to whom the participant was married on the 
withdrawal deadline. For purposes of 5 CFR 1651.5 and 5 CFR 1651.19, 
spouse means the person to whom the participant was married on the date 
of the participant's death. A TSP participant is considered to be 
married even if the parties are separated, unless a court decree of 
divorce or annulment has been entered. The laws of the jurisdiction in 
which the marriage was initially established will be used to determine 
whether a TSP participant is married.
    Tax-deferred balance means the sum of:
    (1) All contributions, rollovers, and transfers in a participant's 
traditional balance that would otherwise be includible in gross income 
if paid directly to the participant and earnings on those amounts; and
    (2) Earnings on any tax-exempt contributions in the traditional 
balance. The tax-deferred balance does not include tax-exempt 
contributions.
    Tax-deferred contributions means employee contributions made to a 
participant's traditional balance that would otherwise be includible in 
gross income if paid directly to the participant.
    Tax-exempt balance means the sum of tax-exempt contributions within 
a participant's traditional balance. It does not include earnings on 
such contributions. Only a traditional balance in a uniformed services 
participant account or a uniformed services beneficiary participant 
account may contain a tax-exempt balance.
    Tax-exempt contributions means employee contributions made to the 
participant's traditional balance from pay which is exempt from taxation 
by 26 U.S.C. 112. The Federal income tax exclusion at 26 U.S.C. 112 is 
applicable to compensation for active service during a month in which a 
uniformed service member serves in a combat zone. The term ``tax-exempt 
contributions'' does not include contributions made to the participant's 
Roth balance from pay which is exempt from taxation by 26 U.S.C. 112.
    Thrift Savings Fund or Fund means the Fund described in 5 U.S.C. 
8437.
    Thrift Savings Plan, TSP, or Plan means the Thrift Savings Plan 
established under subchapters III and VII of the Federal Employees' 
Retirement System Act of 1986, 5 U.S.C. 8351 and 8401-8479.
    ThriftLine means the automated voice response system by which TSP 
participants may, among other things, access their accounts by 
telephone. The ThriftLine can be reached at (877) 968-3778.
    Traditional balance means the sum of:
    (1) Tax-deferred contributions and associated earnings;
    (2) Tax-deferred amounts rolled over or transferred into the TSP and 
associated earnings;
    (3) Tax-exempt contributions and associated earnings;
    (4) Matching contributions and associated earnings;
    (5) Agency Automatic (1%) Contributions and associated earnings.
    Traditional contributions means tax-deferred employee contributions 
and tax-exempt employee contributions made to the participant's 
traditional balance.
    Traditional IRA means an individual retirement account described in 
I.R.C. section 408(a) (26 U.S.C. 408(a)) and an individual retirement 
annuity described in I.R.C. section 408(b) (26 U.S.C. 408(b)) (other 
than an endowment contract).
    Trustee-to-trustee transfer or transfer means the payment of an 
eligible rollover distribution (as defined in section 402(c)(4) of the 
Internal Revenue Code) from an eligible employer plan or IRA directly to 
another eligible employer plan or IRA at the participant's request.
    TSP Fund means an investment fund established pursuant to 5 U.S.C. 
8438 and an investment allocation fund established pursuant to 5 CFR 
Part 1601, subpart E.
    TSP record keeper means the entities the Board engages to perform 
record keeping services for the Thrift Savings Plan.
    TSP Web site means the Internet location maintained by the Board, 
which contains information about the TSP and by which TSP participants 
may,

[[Page 338]]

among other things, access their accounts by computer. The TSP Web site 
address is www.tsp.gov.
    Uniformed service member or uniformed services participant means a 
TSP participant who is a member of the uniformed services on active duty 
or a member of the Ready Reserve in any pay status.
    Uniformed services means the Army, Navy, Air Force, Marine Corps, 
Coast Guard, Public Health Service Commissioned Corps, and the National 
Oceanic and Atmospheric Administration Commissioned Officer Corps.
    Uniformed services account means a TSP account to which 
contributions have been made by or on behalf of a member of the 
uniformed services.
    Uniformed services beneficiary participant account means a 
beneficiary participant account that is established with a death benefit 
payment from a TSP account to which contributions were made by or on 
behalf of a member of the uniformed services.
    Vested account balance means that portion of an individual's account 
which is not subject to forfeiture under 5 U.S.C. 8432(g).

[68 FR 35519, June 13, 2003, as amended at 70 FR 32218, June 1, 2005; 71 
FR 50320, Aug. 25, 2006; 75 FR 78880, Dec. 17, 2010; 77 FR 26429, May 4, 
2012; 78 FR 57784, Sept. 20, 2013; 82 FR 60105, Dec. 19, 2017]

    Editorial Note: At 77 FR 26429, May 4, 2012, Sec.  1690.1 was 
amended by removing the definitions of ``regular contributions'' and 
``combat zone compensation''; however, the amendatory instruction could 
not be incorporated because the definitions were not found in the 
section.



                         Subpart B_Miscellaneous



Sec.  1690.11  Plan year.

    The Thrift Savings Plan's plan year is established on a calendar-
year basis for all purposes, except where another applicable provision 
of law requires that a fiscal year or other basis be used. As used in 
this section, the term ``calendar-year basis'' means a twelve-month 
period beginning on January 1 and ending on December 31 of the same 
year.



Sec.  1690.12  Power of attorney.

    (a) A participant or beneficiary can appoint an agent to conduct 
business with the TSP on his or her behalf by using a power of attorney 
(POA). The agent is called an attorney-in-fact. The TSP must approve a 
POA before the agent can conduct business with the TSP; however, the TSP 
will accept a document that was signed by the agent before the TSP 
approved the POA. The TSP will approve a POA if it meets the following 
conditions:
    (1) The POA must give the agent either general or specific powers, 
as explained in paragraphs (b) and (c) of this section;
    (2) A notary public or other official authorized by law to 
administer oaths or affirmations must authenticate, attest, acknowledge, 
or certify the participant's or beneficiary's signature on the POA; and
    (3) The POA must be submitted to the TSP recordkeeper for approval.
    (b) General power of attorney. A general POA gives an agent 
unlimited authority to conduct business with the TSP, including the 
authority to sign any TSP-related document. Additional information 
regarding general powers of attorney can be accessed at http://
www.tsp.gov.
    (c) Specific power of attorney. A specific power of attorney gives 
an agent the authority to conduct specific TSP transactions. A specific 
POA must expressly describe the authority it grants. Additional 
information regarding special powers of attorney, as well as a sample 
form, can be accessed at http://www.tsp.gov.

[69 FR 29852, May 26, 2004, as amended at 72 FR 53414, Sept. 19, 2007]



Sec.  1690.13  Guardianship and conservatorship orders.

    (a) A court order can authorize an agent to conduct business with 
the TSP on behalf of an incapacitated participant or beneficiary. The 
agent is called a guardian or conservator and the incapacitated person 
is called a ward. The TSP must approve a court order before an agent can 
conduct business with the TSP; however, the TSP will accept a document 
that was signed by the agent before the TSP approved

[[Page 339]]

the court order. The TSP will approve a court order appointing an agent 
if the following conditions are met:
    (1) A court of competent jurisdiction (as defined at 5 CFR 1690.1) 
must have issued the court order;
    (2) The court order must give the agent either general or specific 
powers, as explained in paragraphs (b) and (c) of this section;
    (3) The agent must satisfy the TSP that he or she meets any 
precondition specified in the court order, such as a bonding 
requirement;
    (4) The court order must be submitted to the TSP record keeper for 
approval.
    (b) General grant of authority. A general grant of authority gives a 
guardian or conservator unlimited authority to conduct business with the 
TSP, including the authority to sign any TSP-related document. By way of 
example, an order gives a general grant authority by appointing a 
``guardian of the ward's estate,'' by permitting a guardian to ``conduct 
business transactions'' for the ward, or by authorizing a guardian to 
care for the ward's ``personal property'' or ``Federal Government 
retirement benefits.''
    (c) Specific grant of authority. A specific grant of authority gives 
a guardian or conservator authority to conduct specific TSP 
transactions. Such an order must expressly describe the authority it 
grants. By way of example, an order may authorize an agent to ``obtain 
information about the ward's TSP account'' or ``borrow or withdraw funds 
from the ward's TSP account.''

[69 FR 29852, May 26, 2004]



Sec.  1690.14  Checks made payable to the Thrift Savings Plan.

    (a) Accord and satisfaction. The TSP does not agree to accept less 
than the total amount due by negotiating an instrument such as a check, 
share draft or money order with a restrictive legend on it (such as 
``payment in full'' or ``submitted in full satisfaction of claims''), or 
by negotiating an instrument that is conditionally tendered to the TSP 
with an offer of compromise.
    (b) TSP Payment Address. The TSP has established an address for the 
receipt of specified TSP payments. The TSP will not answer 
correspondence mailed to that payment address.

[70 FR 32218, June 1, 2005]



Sec.  1690.15  Freezing an account--administrative holds.

    (a) The TSP may freeze (e.g., place an administrative hold on) a 
participant's account for any of the following reasons:
    (1) Pursuant to a qualifying retirement benefits court order as set 
forth in part 1653 of this chapter;
    (2) Pursuant to a request from the Department of Justice under the 
Mandatory Victims Restitution Act;
    (3) Upon the death of a participant;
    (4) Upon suspicion or knowledge of fraudulent account activity or 
identity theft;
    (5) In response to litigation pertaining to an account;
    (6) For operational reasons (e.g., to correct a processing error or 
to stop payment on a check when account funds are insufficient);
    (7) Pursuant to a written request from a participant; and
    (8) For any other reason the TSP deems prudent.
    (b) An account freeze (i.e., administrative hold) prohibits a 
participant from withdrawing funds, including loans, from his or her 
account. The participant continues to have the capability to conduct all 
other transactions including making contributions, changing contribution 
allocations, and making interfund transfers.
    (c) The Agency will notify the participant that his or her account 
has been frozen unless it determines it prudent to not notify the 
participant that his of her account has been frozen.
    (d) A participant may block on-line and ThriftLine access to his or 
her account by writing to the TSP or by submitting a request at http://
www.tsp.gov.
    (e) A participant may remove a participant-initiated freeze 
(administrative hold) by submitting a notarized request to the TSP.

[74 FR 63063, Dec. 2, 2009]

                       PARTS 1691	1699 [RESERVED]

[[Page 341]]



                 CHAPTER VIII--OFFICE OF SPECIAL COUNSEL




  --------------------------------------------------------------------
Part                                                                Page
1800            Filing of complaints and allegations........         343
1810            Investigative authority of the Special 
                    Counsel.................................         345
1820            Freedom of Information Act requests; 
                    production of records or testimony......         345
1830            Privacy.....................................         359
1840            Subpoenas...................................         361
1850            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the Office of 
                    Special Counsel.........................         361
1851-1899

 [Reserved]

[[Page 343]]



PART 1800_FILING OF COMPLAINTS AND ALLEGATIONS--Table of Contents



Sec.
1800.1 Filing complaints of prohibited personnel practices or other 
          prohibited activities.
1800.2 Filing disclosures of information.
1800.3 Advisory opinions.

    Authority: 5 U.S.C. 1212(e).



Sec.  1800.1  Filing complaints of prohibited personnel practices 
or other prohibited activities.

    (a) Prohibited personnel practices. The Office of Special Counsel 
(OSC) has investigative jurisdiction over the following prohibited 
personnel practices committed against current or former Federal 
employees and applicants for Federal employment:
    (1) Discrimination, including discrimination based on marital status 
or political affiliation (see Sec.  1810.1 of this chapter for 
information about OSC's deferral policy);
    (2) Soliciting or considering improper recommendations or statements 
about individuals requesting, or under consideration for, personnel 
actions;
    (3) Coercing political activity, or engaging in reprisal for refusal 
to engage in political activity;
    (4) Deceiving or obstructing anyone with respect to competition for 
employment;
    (5) Influencing anyone to withdraw from competition to improve or 
injure the employment prospects of another;
    (6) Granting an unauthorized preference or advantage to improve or 
injure the employment prospects of another;
    (7) Nepotism;
    (8) Reprisal for whistleblowing (whistleblowing is generally defined 
as the disclosure of information about a Federal agency by an employee 
or applicant who reasonably believes that the information shows a 
violation of any law, rule, or regulation; gross mismanagement; gross 
waste of funds; abuse of authority; or a substantial and specific danger 
to public health or safety);
    (9) Reprisal for:
    (i) Exercising certain appeal rights;
    (ii) Providing testimony or other assistance to persons exercising 
appeal rights;
    (iii) Cooperating with the Special Counsel or an Inspector General; 
or
    (iv) Refusing to obey an order that would require the violation of 
law;
    (10) Discrimination based on personal conduct not adverse to job 
performance;
    (11) Violation of a veterans' preference requirement;
    (12) Taking or failing to take a personnel action in violation of 
any law, rule, or regulation implementing or directly concerning merit 
system principles at 5 U.S.C. 2301(b); and
    (13) Implementing or enforcing nondisclosure policies, forms, or 
agreements that do not contain the statement required by 5 U.S.C. 
2302(b)(13).
    (b) Other prohibited activities. OSC also has investigative 
jurisdiction over allegations of the following prohibited activities:
    (1) Violation of the Federal Hatch Act at title 5 of the U.S. Code, 
chapter 73, subchapter III;
    (2) Certain state and local violations of the Hatch Act at title 5 
of the U.S. Code, chapter 15;
    (3) Arbitrary and capricious withholding of information prohibited 
under the Freedom of Information Act at 5 U.S.C. 552 (except for certain 
foreign and counterintelligence information);
    (4) Activities prohibited by any civil service law, rule, or 
regulation, including any activity relating to political intrusion in 
personnel decision making;
    (5) Involvement by any employee in any prohibited discrimination 
found by any court or appropriate administrative authority to have 
occurred in the course of any personnel action (unless the Special 
Counsel determines that the allegation may be resolved more 
appropriately under an administrative appeals procedure); and
    (6) Violation of uniformed services employment and reemployment 
rights under 38 U.S.C. 4301, et seq.
    (c) Procedures for filing complaints alleging prohibited personnel 
practices or other prohibited activities (other than the

[[Page 344]]

Hatch Act). (1) Current or former Federal employees, and applicants for 
Federal employment, may file a complaint with OSC alleging one or more 
prohibited personnel practices, or other prohibited activities within 
OSC's investigative jurisdiction. The Form OSC-14 must be used to file 
all such complaints (except those limited to an allegation or 
allegations of a Hatch Act violation--see paragraph (d) of this section 
for information on filing Hatch Act complaints).
    (2) Forms filed in connection with allegations of reprisal for 
whistleblowing must identify:
    (i) Each disclosure involved;
    (ii) The date of each disclosure;
    (iii) The person to whom each disclosure was made; and
    (iv) The type and date of any personnel action that occurred because 
of each disclosure.
    (3) OSC will not process a complaint filed in any format other than 
a completed OSC Form-14. If a filer does not use the OSC Form-14 to 
submit a complaint, OSC will provide the filer with information about 
the OSC Form-14. OSC will consider the complaint filed on the date on 
which OSC receives a completed OSC Form-14.
    (4) OSC Form-14 is available:
    (i) At: http://www.osc.gov (to complete online);
    (ii) By calling OSC at: (800) 872-9855 (toll-free); or
    (iii) By writing to OSC, at: U.S. Office of Special Counsel, 1730 M 
Street NW., Suite 218, Washington, DC 20036-4505.
    (5) A complainant can file a completed OSC Form-14 with OSC by any 
of the following methods:
    (i) Electronically, at: http://www.osc.gov;
    (ii) By fax, to: (202) 254-3711; or
    (iii) By mail, to: U.S. Office of Special Counsel 1730 M Street NW., 
Suite 218, Washington, DC 20036-4505.
    (d) Procedures for filing complaints alleging violation of the Hatch 
Act. (1) Complaints alleging a violation of the Hatch Act may be 
submitted in any written form, but use of OSC Form-14 is encouraged. 
Complaints should include:
    (i) The complainant's name, mailing address, telephone number, and a 
time when OSC can contact that person about his or her complaint (unless 
the matter is submitted anonymously);
    (ii) The department or agency, location, and organizational unit 
complained of; and
    (iii) A concise description of the actions complained about, names 
and positions of employees who took the actions, if known to the 
complainant, and dates of the actions, preferably in chronological 
order, together with any documentary evidence that the complainant can 
provide.
    (2) OSC Form-14 for filing a complaint is available as described in 
paragraphs (c)(4)(i) through (iii) of this section.
    (3) A written Hatch Act complaint may be filed with OSC:
    (i) Electronically, at: http://www.osc.gov;
    (ii) By fax, to: (202) 254-3700;
    (iii) By email, to: [email protected]; or
    (iv) By mail, to: U.S. Office of Special Counsel, Hatch Act Unit, 
1730 M Street NW., Suite 218, Washington, DC 20036-4505.

[82 FR 26740, June 9, 2017]



Sec.  1800.2  Filing disclosures of information.

    (a) General. OSC is authorized by law (at 5 U.S.C. 1213) to provide 
an independent and secure channel for use by current or former Federal 
employees and applicants for Federal employment in disclosing 
information that they reasonably believe shows wrongdoing by a Federal 
agency. OSC must determine whether there is a substantial likelihood 
that the information discloses a violation of any law, rule, or 
regulation; gross mismanagement; gross waste of funds; abuse of 
authority; or a substantial and specific danger to public health or 
safety. If it does, the law requires OSC to refer the information to the 
agency head involved for investigation and a written report on the 
findings to the Special Counsel. The law does not authorize OSC to 
investigate the subject of a disclosure.
    (b) Procedures for filing disclosures. Current or former Federal 
employees, and applicants for Federal employment, may file a disclosure 
of the type of information described in paragraph

[[Page 345]]

(a) of this section with OSC. Such disclosures must be filed in writing 
(including electronically--see paragraph (b)(3)(i) of this section).
    (1) Filers are encouraged to use OSC Form-14 to file a disclosure of 
the type of information described in paragraph (a) of this section with 
OSC. OSC Form-14 provides more information about OSC jurisdiction, and 
procedures for processing whistleblower disclosures. OSC Form-14 is 
available:
    (i) Online, at: http://www.osc.gov;
    (ii) By calling OSC, at: (800) 572-2249 (toll-free), or (202) 254-
3640; or
    (iii) By writing to OSC, at: U.S. Office of Special Counsel, 1730 M 
Street NW., Suite 218, Washington, DC 20036-4505.
    (2) Filers may use another written format to submit a disclosure to 
OSC, but the submission should include:
    (i) The name, mailing address, and telephone number(s) of the 
person(s) making the disclosure(s), and a time when OSC can contact that 
person about his or her disclosure;
    (ii) The department or agency, location and organizational unit 
complained of; and
    (iii) A statement as to whether the filer consents to disclosure of 
his or her identity by OSC to the agency involved, in connection with 
any OSC referral to that agency.
    (3) A disclosure may be filed in writing with OSC by any of the 
following methods:
    (i) Electronically, at: http://www.osc.gov (for completion and 
filing electronically);
    (ii) By fax, to: (202) 254-3711; or
    (iii) By mail, to: U.S. Office of Special Counsel, 1730 M Street 
NW., Suite 218, Washington, DC 20036-4505.

[82 FR 26741, June 9, 2017]



Sec.  1800.3  Advisory opinions.

    The Special Counsel is authorized to issue advisory opinions only 
about political activity of state or local officers and employees (under 
title 5 of the United States Code, at chapter 15), and political 
activity of Federal officers and employees (under title 5 of the United 
States Code, at chapter 73, subchapter III). A person can seek an 
advisory opinion from OSC by any of the following methods:
    (a) By phone, at: (800) 854-2824 (toll-free), or (202) 653-7143 (in 
the Washington, DC area);
    (b) By mail, to: Office of Special Counsel, Hatch Act Unit, 1730 M 
Street NW., Suite 218, Washington, DC 20036-4505;
    (c) By fax, to: (202) 653-5151; or
    (d) By e-mail, to: [email protected].

[68 FR 66697, Nov. 28, 2003]



PART 1810_INVESTIGATIVE AUTHORITY OF THE SPECIAL COUNSEL--Table of Contents



    Authority: 5 U.S.C. 1212(e).



Sec.  1810.1  Investigative policy in discrimination complaints.

    The Special Counsel is authorized to investigate allegations of 
discrimination prohibited by law, as defined in 5 U.S.C. 2302(b)(1). 
Since procedures for investigating discrimination complaints have 
already been established in the agencies and the Equal Employment 
Opportunity Commission, the Special Counsel will normally avoid 
duplicating those procedures and will defer to those procedures rather 
than initiating an independent investigation.

[54 FR 47342, Nov. 14, 1989]



PART 1820_FREEDOM OF INFORMATION ACT REQUESTS; PRODUCTION OF RECORDS 
OR TESTIMONY--Table of Contents



Sec.
1820.1 General provisions.
1820.2 Requirements for making FOIA requests.
1820.3 Consultations and referrals.
1820.4 Timing of responses to requests.
1820.5 Responses to requests.
1820.6 Appeals.
1820.7 Fees.
1820.8 Business information.
1820.9 Other rights and services.

             Subpart A_Touhy Regulations General Provisions

1820.10 Scope and purpose.
1820.11 Applicability.
1820.12 Definitions.

[[Page 346]]

 Subpart B_Demands or Requests for Testimony and Production of Documents

1820.13 General prohibition.
1820.14 Factors the OSC will consider.
1820.15 Filing requirements for litigants.
1820.16 Service of requests or demands.
1820.17 Processing requests or demands.
1820.18 Final determinations.
1820.19 Restrictions that apply to testimony.
1820.20 Restrictions that apply to released records.
1820.21 Procedure when a decision is not made prior to the time a 
          response is required.
1820.22 Procedure in the event of an adverse ruling.

                       Subpart C_Schedule of Fees

1820.23 Fees.

                           Subpart D_Penalties

1820.24 Penalties.

                  Subpart E_Conformity With Other Laws

1820.25 Conformity with other laws.

    Authority: 5 U.S.C. 552 and 1212(e).

    Source: 72 FR 40711, July 25, 2007, unless otherwise noted.



Sec.  1820.1  General provisions.

    This part contains rules and procedures followed by the U.S. Office 
of Special Counsel (OSC) in processing requests for records under the 
Freedom of Information Act (FOIA), as amended, at 5 U.S.C. 552. These 
rules and procedures should be read together with the FOIA, which 
provides additional information about access to agency records. Further 
information about the FOIA and access to OSC records is available on the 
FOIA page of OSC's Web site (https://www.osc.gov). Information routinely 
provided to the public as part of a regular OSC activity--for example, 
forms, press releases issued by the public affairs officer, records 
published on the agency's Web site, or public lists maintained at OSC 
headquarter offices pursuant to 5 U.S.C. 1219--may be requested and 
provided to the public without following this part. This part also 
addresses responses to demands by a court or other authority to an 
employee for production of official records or testimony in legal 
proceedings.

[81 FR 73016, Oct. 24, 2016]



Sec.  1820.2  Requirements for making FOIA requests.

    (a) Submission of requests. (1) A request for OSC records under the 
FOIA must be made in writing. The request must be sent by:
    (i) Regular mail addressed to: FOIA Officer, U.S. Office of Special 
Counsel, 1730 M Street NW., Suite 218, Washington, DC 20036-4505; or
    (ii) By fax sent to the FOIA Officer at 202-254-3711, the number 
provided on the FOIA page of OSC's Web site (https://osc.gov/Pages/FOIA-
Resources.aspx) (https://www.osc.gov); or
    (iii) By email to [email protected] or other electronic means as 
described on the FOIA page of OSC's Web site, https://osc.gov/Pages/
FOIA-Resources.aspx.
    (2) For the quickest handling, both the request letter and envelope 
or any fax cover sheet or email subject line should be clearly marked 
``FOIA Request.'' Whether sent by mail, fax, email, or other prescribed 
electronic method, a FOIA request will not be considered to have been 
received by OSC until it reaches the FOIA office.
    (b) Description of records sought. Requesters must describe the 
records sought in enough detail for them to be located with a reasonable 
amount of effort. When requesting records about an OSC case file, the 
case file number, name, and type (for example, prohibited personnel 
practice, Hatch Act, USERRA or other complaint; Hatch Act advisory 
opinion; or whistleblower disclosure) should be provided, if known. 
Whenever possible, requests should describe any particular record 
sought, such as the date, title or name, author, recipient, and subject 
matter.
    (c) Agreement to pay fees. Making a FOIA request shall be considered 
an agreement by the requester to pay all applicable fees chargeable 
under Sec.  1820.7, up to and including the amount of $25.00, unless the 
requester asks for a waiver of fees or specifies a willingness to pay a 
greater or lesser amount.

[81 FR 73017, Oct. 24, 2016]

[[Page 347]]



Sec.  1820.3  Consultations and referrals.

    When OSC receives a FOIA request for a record in the agency's 
possession, it may determine that another office is better able to 
decide whether or not the record is exempt from disclosure under the 
FOIA. If so, OSC will either:
    (a) Respond to the request for the record after consulting with the 
other office that has a substantial interest in the record; or
    (b) Refer the responsibility for responding to the request to 
another Federal agency deemed better able to determine whether to 
disclose it. Consultations and referrals will be handled according to 
the date that the FOIA request was initially received by the first 
agency or Federal government office.

[82 FR 15610, Mar. 30, 2017]



Sec.  1820.4  Timing of responses to requests.

    (a) In general. OSC ordinarily will respond to FOIA requests 
according to their order of receipt. In determining which records are 
responsive to a request, OSC ordinarily will include only records in its 
possession as of the date on which it begins its search for them. If any 
other date is used, OSC will inform the requester of that date.
    (b) Multitrack processing. (1) OSC may use two or more processing 
tracks by distinguishing between simple and more complex requests based 
on the amount of work and/or time needed to process the request.
    (2) When using multitrack processing, OSC may provide requesters in 
its slower track(s) with an opportunity to limit the scope of their 
requests in order to qualify for faster processing within the specified 
limits of the faster track(s).
    (c) Expedited processing. (1) Requests and appeals will be taken out 
of order and given expedited treatment whenever OSC has established to 
its satisfaction that:
    (i) Failure to obtain requested records on an expedited basis could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual;
    (ii) With respect to a request made by a person primarily engaged in 
disseminating information, an urgency exists to inform the public about 
an actual or alleged federal government activity; or
    (iii) The requested records relate to an appeal for which the 
requester faces an imminent deadline for filing with the Merit Systems 
Protection Board or other administrative tribunal or a court of law, 
seeking personal relief pursuant to a complaint filed by the requester 
with OSC, or referred to OSC pursuant to title 38 of the U.S. Code. 
Expedited status granted under this provision will apply only to the 
following requested records: Letters sent to the complainant by OSC; and 
the official complaint form submitted to OSC by the complainant or the 
original referred complaint if referred to OSC pursuant to title 38 of 
the U.S. Code. All other requested records will be processed according 
to the order in which OSC received the request.
    (2) A request for expedited processing must be made in writing and 
sent to OSC's FOIA Officer. Such a request will not be considered to 
have been received until it reaches the FOIA Officer.
    (3) A requester who seeks expedited processing must submit a 
statement, certified to be true and correct to the best of that person's 
knowledge and belief, explaining in detail the basis for requesting 
expedited processing. For example, a requester within the category 
described in paragraph (c)(1)(ii) of this section, if not a full-time 
member of the news media, must establish that he or she is a person 
whose main professional activity or occupation is information 
dissemination, though it need not be his or her sole occupation. The 
formality of certification may be waived as a matter of OSC's 
administrative discretion.
    (4) OSC shall decide whether to grant a request for expedited 
processing and notify the requester of its decision within 10 calendar 
days of the FOIA Officer's receipt of the request. If the request for 
expedited processing is granted, the request for records shall be 
processed as soon as practicable. If a request for expedited processing 
is denied, any administrative appeal of that decision shall be acted on 
expeditiously.
    (d) Aggregated requests. OSC may aggregate multiple requests by the 
same requester, or by a group of requesters

[[Page 348]]

acting in concert, if it reasonably believes that such requests 
constitute a single request involving unusual circumstances, as defined 
by the FOIA, supporting an extension of time to respond, and the 
requests involve clearly related matters.

[81 FR 73017, Oct. 24, 2016]



Sec.  1820.5  Responses to requests.

    (a) General. Ordinarily, OSC shall have 20 business days from when a 
request is received to determine whether to grant or deny the request. 
Once OSC makes a determination to grant a FOIA request for records, or 
makes an adverse determination denying a request in any respect, it will 
notify the requester in writing. Adverse determinations, or denials of 
requests, consist of: A determination to withhold any requested record 
in whole or in part; a determination that a requested record does not 
exist or cannot be located; a determination that a record is not readily 
reproducible in the form or format sought by the requester; a 
determination that what has been requested is not a record subject to 
the FOIA; a determination on any disputed fee matter, including a denial 
of a request for a fee waiver; and a denial of a request for expedited 
treatment.
    (b) Adverse determinations. A notification to a requester of an 
adverse determination on a request shall include:
    (1) A brief statement of the reason(s) for the denial of the 
request, including any FOIA exemption applied by OSC in denying the 
request; and
    (2) A statement that the denial may be appealed under section 
1820.6(a), with a description of the requirements of that subsection.
    (c) Dispute resolution program. OSC shall inform FOIA requesters at 
all stages of the FOIA process of the availability of dispute resolution 
services. In particular, OSC's FOIA acknowledgement letters shall notify 
requesters that the FOIA Liaison is available to assist them with 
requests. The acknowledgment letter and any agency response will include 
a notice that the FOIA Public Liaison may provide dispute resolution 
services, and will also notify the requester of the dispute resolution 
services provided by the National Archives and Records Administration's 
(NARA) Office of Government Information Services (OGIS).
    (d) Maintenance of files. OSC must preserve federal record 
correspondence and copies of requested records until disposition is 
authorized pursuant to Title 44 of the United States Code and the 
relevant approved records retention schedule.

[72 FR 40711, July 25, 2007, as amended at 82 FR 15610, Mar. 30, 2017]



Sec.  1820.6  Appeals.

    (a) Appeals of adverse determinations. A requester may appeal a 
determination denying a FOIA request in any respect to the Office of 
General Counsel, U.S. Office of Special Counsel, 1730 M Street NW., 
Suite 218, Washington, DC 20036-4505. The appeal must be in writing, and 
must be submitted either by:
    (1) Regular mail sent to the address listed in this subsection, 
above; or
    (2) By fax sent to the FOIA Officer at, (202) 254-3711, or the 
number provided on the FOIA page of OSC's Web site https://osc.gov/
Pages/FOIAResources.aspx; or
    (3) By email to [email protected], or other electronic means as 
described on the FOIA page of OSC's Web site, https://osc.gov/Pages/
FOIAResources.aspx.
    (b) Submission and content. The Office of General Counsel must 
receive the appeal within 90 days of the date of the letter denying the 
request. For the quickest possible handling, the appeal letter and 
envelope or any fax cover sheet or email subject line should be clearly 
marked ``FOIA Appeal.'' The appeal letter must clearly identify the OSC 
determination (including the assigned FOIA request number, if known) 
being appealed. OSC will not ordinarily act on a FOIA appeal if the 
request becomes a matter of FOIA litigation.
    (c) Responses to appeals. Ordinarily, OSC shall have 20 business 
days from receipt of the appeal to issue an appeal decision. 5 U.S.C. 
552(a)(6)(A)(ii). OSC's decision on an appeal will be in writing. A 
decision affirming a denial in whole or in part shall inform the 
requester of the provisions for judicial review of that decision. If the 
denial is reversed or modified on appeal, in whole or in part, OSC will 
notify the requester in a written decision and

[[Page 349]]

OSC will reprocess the request in accordance with that appeal decision. 
OSC will notify the requester of the availability of dispute resolution 
services provided by the FOIA Public Liaison and the dispute resolution 
services provided by the National Archives and Records Administration's 
(NARA) Office of Government Information Services (OGIS).
    (d) Maintenance of files. OSC must preserve federal record 
correspondence and copies of requested records until disposition is 
authorized pursuant to Title 44 of the United States Code and the 
relevant approved records retention schedule.

[82 FR 15610, Mar. 30, 2017]



Sec.  1820.7  Fees.

    (a) In general. OSC shall charge for processing requests under the 
FOIA in accordance with paragraph (c) of this section, except where fees 
are limited under paragraph (d) of this section or where a waiver or 
reduction of fees is granted under paragraph (k) of this section. OSC 
may collect all applicable fees before sending copies of requested 
records to a requester. Requesters must pay fees by check or money order 
made payable to the Treasury of the United States.
    (b) Definitions. For purposes of this section:
    (1) ```Commercial use' request'' means a request from or on behalf 
of a person who seeks information for a use or purpose that furthers his 
or her commercial, trade, or profit interests, which can include 
furthering those interests through litigation. OSC shall determine, 
whenever reasonably possible, the use to which a requester will put the 
requested records. When it appears that the requester will put the 
records to a commercial use, either because of the nature of the request 
itself or because OSC has reasonable cause to doubt a requester's stated 
use, OSC shall provide the requester with a reasonable opportunity to 
submit further clarification.
    (2) ``Direct costs'' means those expenses that OSC incurs in 
searching for and duplicating (and, in the case of commercial use 
requests, reviewing) records to respond to a FOIA request. Direct costs 
include, for example, the salary of the employee performing the work 
(the basic rate of pay for the employee plus 16 percent of that rate to 
cover benefits) and the cost of operating duplicating equipment. Direct 
costs do not include overhead expenses such as the costs of space, and 
heating or lighting the facility in which the records are kept.
    (3) ``Duplication'' means the process of making of a copy of a 
record, or of the information contained in it, necessary to respond to a 
FOIA request. Copies can take the form of paper, microform, audiovisual 
materials, or electronic records (for example, on digital data storage 
discs), among others.
    (4) ``Educational institution'' means a preschool, a public or 
private elementary or secondary school, an institution of undergraduate 
higher education, an institution of graduate higher education, an 
institution of professional education, or an institution of vocational 
education, that operates a program of scholarly research. To be in this 
category, a requester must show that the request is authorized by and is 
made under the auspices of a qualifying institution and that the records 
are not sought for a commercial use but are sought to further scholarly 
research.
    (5) ``Non-commercial scientific institution'' means an institution 
that is not operated on a ``commercial'' basis, as that term is 
referenced in paragraph (b)(1) of this section, and that is operated 
solely for the purpose of conducting scientific research the results of 
which are not intended to promote any particular product or industry. To 
be in this category, a requester must show that the request is 
authorized by and is made under the auspices of a qualifying institution 
and that the records are not sought for a commercial use but are sought 
to further scientific research.
    (6) ``Representative of the news media'' or ``news media requester'' 
means any person or entity that gathers information of potential 
interest to a segment of the public, uses its editorial skills to turn 
the raw materials into a distinct work, and distributes that work to an 
audience. A non-exhaustive list of news media entities could include, in 
addition to television or radio stations broadcasting to the

[[Page 350]]

public at large and publishers of periodicals (but only in those 
instances where they can qualify as disseminators of ``news''), 
electronic outlets for print newspapers, magazines, and television and 
radio stations, and web-only outlets or other alternative media as 
methods of news delivery evolve. For ``freelance'' journalists to be 
regarded as working for a news organization, they must demonstrate a 
solid basis for expecting publication through that organization, whether 
print or electronic. A publication contract would be the clearest proof, 
but OSC may also look to the past publication record of a requester in 
making this determination. To be in this category, a requester must not 
be seeking the requested records for a commercial use. A request for 
records supporting the news-dissemination function of the requester 
shall not be considered to be for a commercial use.
    (7) ``Review'' means the process of examining a record located in 
response to a request in order to determine whether any portion of the 
record is exempt from disclosure. It includes processing any record for 
disclosure--for example, doing all that is necessary to redact it and 
otherwise prepare it for disclosure. Review time also includes time 
spent obtaining and considering any formal objection to disclosure made 
by a business submitter under Sec.  1820.8(f). It does not include time 
spent resolving general legal or policy issues about the application of 
exemptions. Review costs are properly charged in connection with 
commercial use requests even if a record ultimately is not disclosed.
    (8) ``Search'' means the process of looking for and retrieving 
records or information responsive to a request. It includes page-by-page 
or line-by-line identification of information within records when 
undertaken, and reasonable efforts to locate and retrieve information 
from records maintained in electronic form or format, to the extent that 
such efforts would not significantly interfere with the operation of an 
automatic information system.
    (c) Fees. In responding to FOIA requests, OSC shall charge the 
following fees unless a waiver or reduction of fees has been granted 
under paragraph (k) of this section:
    (1) Search. (i) Search fees will be charged for all requests--other 
than requests made by educational institutions, noncommercial scientific 
institutions, or representatives of the news media--subject to the 
limitations of paragraph (d) of this section. OSC may charge for time 
spent searching even if it fails to locate responsive records, or 
records located after a search are determined to be exempt from 
disclosure.
    (ii) For each quarter hour spent by clerical personnel in searching 
for and retrieving a requested record, the fee will be $5.50. Where a 
search and retrieval cannot be performed entirely by clerical personnel 
- for example, where the identification of records within the scope of a 
request requires the use of professional personnel - the fee will be 
$9.00 for each quarter hour of search time spent by professional 
personnel. Where the time of managerial personnel is required, the fee 
will be $17.50 for each quarter hour of time spent by those personnel.
    (iii) For electronic searches of records, requesters will be charged 
the direct costs of conducting the search, including the costs of 
operator/programmer staff time apportionable to the search.
    (iv) For requests requiring the retrieval of records from any 
Federal Records Center, additional costs may be charged in accordance 
with the applicable billing schedule established by the National 
Archives and Records Administration.
    (2) Duplication. Duplication fees will be charged to all requesters, 
subject to the limitations of paragraph (d) of this section. For a 
standard paper photocopy of a record (no more than one copy of which 
need be supplied), the fee will be 25 cents per page. For copies 
produced by computer, such as discs or printouts, OSC will charge the 
direct costs, including staff time, of producing the copy. For other 
forms of duplication, OSC will charge the direct costs of that 
duplication.
    (3) Review. Review fees will be charged to requesters who make a 
commercial use request. Review fees will be charged for only initial 
record review - in other words, the review done when OSC analyzes 
whether an exemption applies to a particular record or

[[Page 351]]

record portion at the initial request level. No charge will be made for 
review at the administrative appeal level for an exemption already 
applied. However, records or record portions withheld under an exemption 
that is subsequently determined not to apply may be reviewed again to 
determine whether any other exemption not previously considered applies; 
the costs of that review are chargeable where it is made necessary by 
such a change of circumstances. Review fees will be charged at the same 
rates as those charged for a search under paragraph (c)(1)(ii) of this 
section.
    (d) Limitations on charging fees. (1) No search fee will be charged 
for requests by educational institutions, noncommercial scientific 
institutions, or representatives of the news media.
    (2) No search fee or review fee will be charged for a quarter-hour 
period unless more than half of that period is required for search or 
review.
    (3) Except for requesters seeking records for a commercial use, OSC 
will provide without charge:
    (i) The first 100 pages of duplication (or the cost equivalent); and
    (ii) The first two hours of search (or the cost equivalent).
    (4) Whenever a total fee calculated under paragraph (c) of this 
section is $20.00 or less for any request, no fee will be charged.
    (5) The provisions of paragraphs (d)(3) and (d)(4) of this section 
work together. This means that for requesters other than those seeking 
records for a commercial use, no fee will be charged unless the cost of 
search in excess of two hours plus the cost of duplication in excess of 
100 pages totals more than $20.00.
    (e) Notice of anticipated fees in excess of $25.00. When OSC 
determines or estimates that the fees to be charged under this section 
will amount to more than $25.00, OSC shall notify the requester of the 
actual or estimated amount of the fees, unless the requester has 
indicated a willingness to pay fees as high as those anticipated. If 
only a portion of the fee can be estimated readily, OSC will advise the 
requester that the estimated fee may be only a portion of the total fee. 
In cases in which a requester has been notified that actual or estimated 
fees amount to more than $25.00, the request shall not be considered 
received and further work will not be done on it until the requester 
agrees to pay the anticipated total fee. A notice under this paragraph 
will offer the requester an opportunity to discuss the matter with OSC 
in order to reformulate the request to meet the requester's needs at a 
lower cost.
    (f) Charges for other services. Apart from the other provisions of 
this section, when OSC chooses as a matter of administrative discretion 
to provide a special service-such as sending records by other than 
ordinary mail-the direct costs of providing the service ordinarily will 
be charged.
    (g) Charging interest. OSC may charge interest on any unpaid fee 
starting on the 31st day after the date of on which the billing was sent 
to the requester. Interest charges will be assessed at the rate provided 
in 31 U.S.C. 3717 and will accrue from the date of billing until payment 
is received by OSC. OSC will follow the provisions of the Debt 
Collection Act of 1982 (Public Law 97-365, 96 Stat. 1749), as amended by 
the Debt Collection Act of 1996 (Public Law 104-134, 110 Stat. 1321-
358), and its administrative procedures, including the use of consumer 
reporting agencies, collection agencies, and offset.
    (h) Aggregating requests. Where OSC reasonably believes that a 
requester or a group of requesters acting together is attempting to 
divide a request into a series of requests that otherwise could have 
been submitted as a single request, for the purpose of avoiding fees, 
OSC may aggregate those requests and charge accordingly. OSC may presume 
that multiple requests of this type made within a 30-day period have 
been made in order to avoid fees. Where requests are separated by a 
longer period, OSC will aggregate them only where a reasonable basis 
exists for determining that aggregation is warranted under all of the 
circumstances involved. Multiple requests involving unrelated matters 
will not be aggregated.
    (i) Advance payments. (1) For requests other than those described in 
paragraphs (i)(2) and (i)(3) of this section, OSC will not require the 
requester to make an advance payment before work is begun or continued 
on a request.

[[Page 352]]

Payment owed for work already completed (that is, pre-payment after 
processing a request but before copies are sent to the requester) is not 
an advance payment.
    (2) Where OSC determines or estimates that a total fee to be charged 
under this section will be more than $250.00, it may require the 
requester to make an advance payment of an amount up to the amount of 
the entire anticipated fee before beginning to process the request, 
except where it receives a satisfactory assurance of full payment from a 
requester who has a history of prompt payment.
    (3) Where a requester has previously failed to pay a properly 
charged FOIA fee to any agency within 30 days of the date of billing, 
OSC may require the requester to pay the full amount due, plus any 
applicable interest, and to make an advance payment of the full amount 
of any anticipated fee, before OSC begins to process a new request or 
continues to process a pending request from that requester.
    (4) In cases in which OSC requires advance payment or payment due 
under paragraph (i)(2) or (3) of this section, the request shall not be 
considered received and further work will not be done on the request 
until the required payment is received.
    (j) Other statutes specifically providing for fees. The fee schedule 
of this section does not apply to fees charged under any statute that 
specifically requires an agency to set and collect fees for particular 
types of records. Where records responsive to requests are maintained 
for distribution by agencies operating such statutorily based fee 
schedule programs, OSC will provide contact information for use by 
requesters in obtaining records from those sources.
    (k) Requirements for waiver or reduction of fees. (1) Records 
responsive to a request shall be furnished without charge or at a charge 
reduced below that established under paragraph (c) of this section where 
OSC determines, based on all available information, that the requester 
has demonstrated that:
    (i) Disclosure of the requested information is in the public 
interest because it is likely to contribute significantly to public 
understanding of the operations or activities of the government, and
    (ii) Disclosure of the information is not primarily in the 
commercial interest of the requester.
    (2) To determine whether the first fee waiver requirement is met, 
OSC will consider the following factors:
    (i) The subject of the request: Whether the subject of the requested 
records concerns ``the operations or activities of the government.'' The 
subject of the requested records must concern identifiable operations or 
activities of the federal government, with a connection that is direct 
and clear, not remote or attenuated.
    (ii) The informative value of the information to be disclosed: 
Whether the disclosure is ``likely to contribute''' to an understanding 
of government operations or activities. The disclosable portions of the 
requested records must be meaningfully informative about government 
operations or activities in order to be ``likely to contribute''to an 
increased public understanding of those operations or activities. The 
disclosure of information that already is in the public domain, in 
either a duplicative or a substantially identical form, would not be as 
likely to contribute to such understanding where nothing new would be 
added to the public's understanding.
    (iii) The contribution to an understanding of the subject by the 
public likely to result from disclosure: Whether disclosure of the 
requested information will contribute to ``public understanding.'' The 
disclosure must contribute to the understanding of a reasonably broad 
audience of persons interested in the subject, as opposed to the 
individual understanding of the requester. A requester's expertise in 
the subject area and ability and intention to effectively convey 
information to the public shall be considered. It shall be presumed that 
a representative of the news media satisfies this consideration.
    (iv) The significance of the contribution to public understanding: 
Whether the disclosure is likely to contribute ``significantly'' to 
public understanding of government operations or activities. The 
public's understanding

[[Page 353]]

of the subject in question, as compared to the level of public 
understanding existing prior to the disclosure, must be enhanced by the 
disclosure to a significant extent. OSC shall not make value judgments 
about whether information that would contribute significantly to public 
understanding of the operations or activities of the government is 
``important'' enough to be made public.
    (3) To determine whether the second fee waiver requirement is met, 
OSC will consider the following factors:
    (i) The existence and magnitude of a commercial interest: Whether 
the requester has a commercial interest that would be furthered by the 
requested disclosure. OSC shall consider any commercial interest of the 
requester (with reference to the definition of ``commercial use'' in 
paragraph (b)(1) of this section), or of any person on whose behalf the 
requester may be acting, that would be furthered by the requested 
disclosure. Requesters shall be given an opportunity to provide 
explanatory information about this consideration.
    (ii) The primary interest in disclosure: Whether any identified 
commercial interest of the requester is sufficiently large, in 
comparison with the public interest in disclosure, that disclosure is 
``primarily in the commercial interest of the requester.'' A fee waiver 
or reduction is justified where the public interest standard is 
satisfied and that public interest is greater in magnitude than that of 
any identified commercial interest in disclosure. OSC ordinarily shall 
presume that where a news media requester has satisfied the public 
interest standard, the public interest will be the interest primarily 
served by disclosure to that requester. Disclosure to data brokers or 
others who merely compile and market government information for direct 
economic return shall not be presumed to primarily serve the public 
interest.
    (4) Where only some of the records to be released satisfy the 
requirements for a waiver of fees, a waiver shall be granted for those 
records.
    (5) Requests for the waiver or reduction of fees should address the 
factors listed in paragraphs (k)(2) and (3) of this section, insofar as 
they apply to each request. OSC will exercise its discretion to consider 
the cost-effectiveness of its investment of administrative resources in 
this decision making process, however, in deciding to grant waivers or 
reductions of fees.

[72 FR 40711, July 25, 2007, as amended at 82 FR 15610, Mar. 30, 2017]



Sec.  1820.8  Business information.

    (a) In general. Business information obtained by OSC from a 
submitter will be disclosed under the FOIA only under this section.
    (b) Definitions. For purposes of this section:
    (1) ``Business information'' means commercial or financial 
information obtained by OSC from a submitter that may be protected from 
disclosure under exemption 4 of the FOIA.
    (2) ``Submitter'' means any person or entity from whom the OSC 
obtains business information, directly or indirectly. The term includes 
corporations, and state, local, tribal and foreign governments.
    (c) Designation of business information. A submitter of business 
information will use good-faith efforts to designate, by appropriate 
markings, either at the time of submission or at a reasonable time 
thereafter, any portion of its submission that it considers to be 
protected from disclosure under exemption 4. These designations will 
expire 10 years after the date of the submission unless the submitter 
requests, and provides justification for, a longer designation period.
    (d) Notice to submitters. OSC shall provide a submitter with prompt 
written notice of a FOIA request or administrative appeal that seeks its 
business information wherever required under paragraph (e) of this 
section, except as provided in paragraph (h) of this section, in order 
to give the submitter an opportunity to object to disclosure of any 
specified portion of that information under paragraph (f) of this 
section. The notice shall either describe the business information 
requested or include copies of the requested records or record portions 
containing the information. When notification of a voluminous number of 
submitters is required, notification may be made by posting or 
publishing the notice in a place reasonably likely to accomplish it.

[[Page 354]]

    (e) When notice is required. Notice shall be given to a submitter 
wherever:
    (1) The information has been designated in good faith by the 
submitter as information considered protected from disclosure under 
exemption 4; or
    (2) OSC has reason to believe that the information may be protected 
from disclosure under exemption 4.
    (f) Opportunity to object to disclosure. OSC will allow a submitter 
a reasonable time to respond to the notice described in paragraph (d) of 
this section and will specify that time period within the notice. If a 
submitter has any objection to disclosure, it is required to submit a 
detailed written statement. The statement must specify all grounds for 
withholding any portion of the information under any exemption of the 
FOIA and, in the case of exemption 4, it must show why the information 
is a trade secret or commercial or financial information that is 
privileged or confidential. If a submitter fails to respond to the 
notice within the time specified in it, the submitter will be considered 
to have no objection to disclosure of the information. Information 
provided by the submitter that is not received by OSC until after its 
disclosure decision has been made shall not be considered by OSC. 
Information provided by a submitter under this paragraph may itself be 
subject to disclosure under the FOIA.
    (g) Notice of intent to disclose. OSC shall consider a submitter's 
objections and specific grounds for nondisclosure in deciding whether to 
disclose business information. Whenever OSC decides to disclose business 
information over the objection of a submitter, OSC shall give the 
submitter written notice, which shall include:
    (1) A statement of the reason(s) why each of the submitter's 
disclosure objections was not sustained;
    (2) A description of the business information to be disclosed; and
    (3) A specified disclosure date, which shall be a reasonable time 
subsequent to the notice.
    (h) Exceptions to notice requirements. The notice requirements of 
paragraphs (d) and (g) of this section shall not apply if:
    (1) OSC determines that the information should not be disclosed;
    (2) The information lawfully has been published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by statute (other than 
the FOIA) or by a regulation issued in accordance with the requirements 
of Executive Order 12600; or
    (4) The designation made by the submitter under paragraph (c) of 
this section appears obviously frivolous - except that, in such a case, 
OSC shall, within a reasonable time prior to a specified disclosure 
date, give the submitter written notice of any final decision to 
disclose the information.
    (i) Notice of FOIA lawsuit. Whenever a requester files a lawsuit 
seeking to compel the disclosure of business information, OSC shall 
promptly notify the submitter.
    (j) Corresponding notice to requesters. Whenever OSC provides a 
submitter with notice and an opportunity to object to disclosure under 
paragraph (d) of this section, OSC shall also notify the requester(s). 
Whenever OSC notifies a submitter of its intent to disclose requested 
information under paragraph (g) of this section, OSC shall also notify 
the requester(s). Whenever a submitter files a lawsuit seeking to 
prevent the disclosure of business information, OSC shall notify the 
requester(s).



Sec.  1820.9  Other rights and services.

    Nothing in this part shall be construed to entitle any person, as of 
right, to any service or to the disclosure of any record to which such 
person is not entitled under the FOIA.



             Subpart A_Touhy Regulations General Provisions



Sec.  1820.10  Scope and purpose.

    (a) This part establishes policy, assigns responsibilities and 
prescribes procedures with respect to:
    (1) The production or disclosure of official information or records 
by current and former OSC employees, and contractors; and
    (2) The testimony of current and former OSC employees, advisors, and 
consultants relating to official information, official duties, or the 
OSC's records, in connection with federal or

[[Page 355]]

state litigation or administrative proceedings in which the OSC is not a 
party.
    (b) The OSC intends this part to:
    (1) Conserve the time of OSC employees for conducting official 
business;
    (2) Minimize the involvement of OSC employees in issues unrelated to 
OSC's mission;
    (3) Maintain the impartiality of OSC employees in disputes between 
private litigants; and
    (4) Protect sensitive, confidential information and the deliberative 
processes of the OSC.
    (c) In providing for these requirements, the OSC does not waive the 
sovereign immunity of the United States.
    (d) This part provides guidance for the internal operations of OSC. 
It does not create any right or benefit, substantive or procedural, that 
a party may rely upon in any legal proceeding against the United States.

[81 FR 73018, Oct. 24, 2016]



Sec.  1820.11  Applicability.

    This part applies to demands and requests to current and former 
employees, and contractors, for factual or expert testimony relating to 
official information or official duties or for production of official 
records or information, in legal proceedings in which the OSC is not a 
named party. This part does not apply to:
    (a) Demands upon or requests for current or former OSC employees or 
contractors to testify as to facts or events that are unrelated to his 
or her official duties or that are unrelated to the functions of the 
OSC;
    (b) Requests for the release of records under the Freedom of 
Information Act, 5 U.S.C. 552, or the Privacy Act, 5 U.S.C. 552a; or
    (c) Congressional demands and requests for testimony, records or 
information.

[81 FR 73018, Oct. 24, 2016]



Sec.  1820.12  Definitions.

    The following definitions apply to this part.
    Demand means an order, subpoena, or other command of a court or 
other competent authority for the production, disclosure, or release of 
records or for the appearance and testimony of an OSC employee in a 
legal proceeding.
    General Counsel means the General Counsel of the OSC or a person to 
whom the General Counsel has delegated authority under this part.
    Legal proceeding means any matter before a court of law, 
administrative board or tribunal, commission, administrative law judge, 
hearing officer or other body that conducts a legal or administrative 
proceeding. Legal proceeding includes all phases of litigation.
    OSC means the U.S. Office of Special Counsel.
    OSC employee or employee means:
    (1)(i) Any current or former employee of the OSC; and
    (ii) Any other individual hired through contractual agreement by or 
on behalf of the OSC or who has performed or is performing services 
under such an agreement for the OSC.
    (2) This definition does not include persons who are no longer 
employed by the OSC and who agree to testify about matters available to 
the public.
    Records or official records and information means all information in 
the custody and control of the OSC, relating to information in the 
custody and control of the OSC, or acquired by an OSC employee in the 
performance of his or her official duties or because of his or her 
official status, while the individual was employee by or on behalf of 
the OSC.
    Request means any informal request, by whatever method, for the 
production of records and information or for testimony which has not 
been ordered by a court of other competent authority.
    Testimony means any written or oral statements, including 
depositions, answers to interrogatories, affidavits, declarations, 
interviews, and statements made by an individual in connection with a 
legal proceeding.

[81 FR 73018, Oct. 24, 2016]



 Subpart B_Demands or Requests for Testimony and Production of Documents

    Source: 81 FR 73018, Oct. 24, 2016, unless otherwise noted.

[[Page 356]]



Sec.  1820.13  General prohibition.

    No employee of OSC may produce official records and information or 
provide any testimony relating to official information in response to a 
demand or request without the prior written approval of the General 
Counsel.



Sec.  1820.14  Factors the OSC will consider.

    The General Counsel, in his or her sole discretion, may grant an 
employee permission to testify on matters relating to official 
information, or produce official records and information, in response to 
a demand or request. Among the relevant factors that the General Counsel 
may consider in making this decision are whether:
    (a) The purposes of this part are met;
    (b) Allowing such testimony or production of records would be 
necessary to prevent a miscarriage of justice;
    (c) Allowing such testimony or production of records would assist or 
hinder the OSC in performing its statutory duties;
    (d) Allowing such testimony or production of records would be in the 
best interest of the OSC or the United States;
    (e) The records or testimony can be obtained from other sources;
    (f) The demand or request is unduly burdensome or otherwise 
inappropriate under the applicable rules of discovery or the rule of 
procedure governing the case or matter in which the demand or request 
arose;
    (g) Disclosure would violate a statute, Executive Order or 
regulation;
    (h) Disclosure would reveal confidential, sensitive, or privileged 
information, trade secrets or similar, confidential or financial 
information, otherwise protected information, or information which would 
otherwise be inappropriate for release;
    (i) Disclosure would impede or interfere with an ongoing law 
enforcement investigation or proceeding, or compromise constitutional 
rights or national security interests;
    (j) Disclosure would result in the OSC appearing to favor one 
litigant over another;
    (k) A substantial government interest is implicated;
    (l) The demand or request is within the authority of the party 
making it; and
    (m) The demand or request is sufficiently specific to be answered.



Sec.  1820.15  Filing requirements for litigants seeking documents 
or testimony.

    A litigant must comply with the following requirements when filing a 
request for official records and information or testimony under this 
part. A request should be filed before a demand is issued.
    (a) The request must be in writing and must be submitted to the 
General Counsel.
    (b) The written request must contain the following information:
    (1) The caption of the legal or administrative proceeding, docket 
number, and name and address of the court or other administrative or 
regulatory authority involved;
    (2) A copy of the complaint or equivalent document setting forth the 
assertions in the case and any other pleading or document necessary to 
show relevance;
    (3) A list of categories of records sought, a detailed description 
of how the information sought is relevant to the issues in the legal or 
administrative proceeding, and a specific description of the substance 
of the testimony or records sought;
    (4) A statement as to how the need for the information outweighs any 
need to maintain the confidentiality of the information and outweighs 
the burden on the OSC to produce the records or provide testimony;
    (5) A statement indicating that the information sought is not 
available from another source, from other persons or entities, or from 
the testimony of someone other than an OSC employee, such as a retained 
expert;
    (6) If testimony is requested, the intended use of the testimony, 
and a showing that no document could be provided and used in lieu of 
testimony;
    (7) A description of all prior decisions, orders, or pending motions 
in the case that bear upon the relevance of the requested records or 
testimony;

[[Page 357]]

    (8) The name, address, and telephone number of counsel to each party 
in the case; and
    (9) An estimate of the amount of time that the requester and other 
parties will require of each OSC employee for time spent by the employee 
to prepare for testimony, in travel, and for attendance in the legal 
proceeding.
    (c) The OSC reserves the right to require additional information to 
complete the request where appropriate.
    (d) The request should be submitted at least 30 days before the date 
that records or testimony is required. Requests submitted in less than 
30 days before records or testimony is required must be accompanied by a 
written explanation stating the reasons for the late request and the 
reasons for expedited processing.
    (e) Failure to cooperate in good faith to enable the General Counsel 
to make an informed decision may serve as the basis for a determination 
not to comply with the request.
    (f) The request should state that the requester will provide a copy 
of the OSC employee's statement free of charge and that the requester 
will permit the OSC to have a representative present during the 
employee's testimony.



Sec.  1820.16  Service of requests or demands.

    Requests or demands for official records or information or testimony 
under this subpart must be served by mail or hand delivery to the Office 
of General Counsel, U.S. Office of Special Counsel, 1730 M St. NW., 
Suite 213, Washington, DC 20036; or sent by fax to 202-254-3711.



Sec.  1820.17  Processing requests or demands.

    (a) After receiving service of a request or demand for testimony, 
the General Counsel will review the request and, in accordance with the 
provisions of this subpart, determine whether, or under what conditions, 
to authorize the employee to testify on matters relating to official 
information and/or produce official records and information.
    (b) Absent exigent circumstances, the OSC will issue a determination 
within 30 days from the date the request is received.
    (c) The General Counsel may grant a waiver of any procedure 
described by this subpart where a waiver is considered necessary to 
promote a significant interest of the OSC or the United States, or for 
other good cause.
    (d) Certification (authentication) of copies of records. The OSC may 
certify that records are true copies in order to facilitate their use as 
evidence. If a requester seeks certification, the requester must request 
certified copies from the OSC at least 30 days before the date they will 
be needed.



Sec.  1820.18  Final determination.

    The General Counsel makes the final determination regarding requests 
to employees for production of official records and information or 
testimony in litigation in which the OSC is not a party. All final 
determinations are within the sole discretion of the General Counsel. 
The General Counsel will notify the requester and, when appropriate, the 
court or other competent authority of the final determination, the 
reasons for the grant or denial of the request, and any conditions that 
the General Counsel may impose on the release of records or information, 
or on the testimony of an OSC employee. The General Counsel's decision 
exhausts administrative remedies for purposes of disclosure of the 
information.



Sec.  1820.19  Restrictions that apply to testimony.

    (a) The General Counsel may impose conditions or restrictions on the 
testimony of OSC employees including, for example:
    (1) Limiting the areas of testimony;
    (2) Requiring the requester and other parties to the legal 
proceeding to agree that the transcript of the testimony will be kept 
under seal;
    (3) Requiring that the transcript will be used or made available 
only in the particular legal proceeding for which testimony was 
requested. The General Counsel may also require a copy of the transcript 
of testimony at the requester's expense.
    (b) The OSC may offer the employee's written declaration in lieu of 
testimony.

[[Page 358]]

    (c) If authorized to testify pursuant to this part, an employee may 
testify as to facts within his or her personal knowledge, but, unless 
specifically authorized to do so by the General Counsel, the employee 
shall not;
    (1) Disclose confidential or privileged information; or
    (2) For a current OSC employee, testify as an expert or opinion 
witness with regard to any matter arising out of the employee's official 
duties or the functions of the OSC unless testimony is being given on 
behalf of the United States (see also 5 CFR 2635.805).
    (d) The scheduling of an employee's testimony, including the amount 
of time that the employee will be made available for testimony, will be 
subject to the OSC's approval.



Sec.  1820.20  Restrictions that apply to released records.

    (a) The General Counsel may impose conditions or restrictions on the 
release of official records and information, including the requirement 
that parties to the proceeding obtain a protective order or execute a 
confidentiality agreement to limit access and any further disclosure. 
The terms of the protective order or of a confidentiality agreement must 
be acceptable to the General Counsel. In cases where protective orders 
or confidentiality agreements have already been executed, the OSC may 
condition the release of official records and information on an 
amendment to the existing protective order (subject to court approval) 
or confidentiality agreement.
    (b) If the General Counsel so determines, original OSC records may 
be presented for examination in response to a request, but they may not 
be presented as evidence or otherwise used in a manner by which they 
could lose their identity as official OSC records, nor may they be 
marked or altered. In lieu of the original records, certified copies may 
be presented for evidentiary purposes.



Sec.  1820.21  Procedure when a decision is not made prior to the time 
a response is required.

    If a response to a demand or request is required before the General 
Counsel can make the determination referred to in Sec.  1820.28, the 
General Counsel, when necessary, will provide the court or other 
competent authority with a copy of this part, inform the court or other 
competent authority that the request is being reviewed, provide an 
estimate as to when a decision will be made, and seek a stay of the 
demand or request pending a final determination.



Sec.  1820.22  Procedure in the event of an adverse ruling.

    If the court or other competent authority fails to stay a demand or 
request, the employee upon whom the demand or request is made, unless 
otherwise advised by the General Counsel, will appear, if necessary, at 
the stated time and place, produce a copy of this part, state that the 
employee has been advised by counsel not to provide the requested 
testimony or produce documents, and respectfully decline to comply with 
the demand or request, citing United States ex rel. Touhy v. Ragen, 340 
U.S. 462 (1951).



                       Subpart C_Schedule of Fees



Sec.  1820.23  Fees.

    (a) Generally. The General Counsel may condition the production of 
records or appearance for testimony upon advance payment of a reasonable 
estimate of the costs to the OSC.
    (b) Fees for records. Fees for producing records will include fees 
for searching, reviewing, and duplicating records, costs of attorney 
time spent in reviewing the request, and expenses generated by materials 
and equipment used to search for, produce, and copy the responsive 
information. Costs for employee time will be calculated on the basis of 
the hourly pay of the employee (including all pay, allowances, and 
benefits). Fees for duplication will be the same as those charged by the 
OSC in its Freedom of Information Act regulations at Sec.  1820.7.
    (c) Witness fees. Fees for attendance by a witness will include 
fees, expenses, and allowances prescribed by the court's rules. If no 
such fees are prescribed, witness fees will be determined based upon the 
rule of the federal district closest to the location where the witness 
will appear and on 28 U.S.C.

[[Page 359]]

1821, as applicable. Such fees will include cost of time spent by the 
witness to prepare for testimony, in travel and for attendance in the 
legal proceeding, plus travel costs.
    (d) Payment of fees. A requester must pay witness fees for current 
OSC employees and any record certification fees by submitting to the 
General Counsel a check or money order for the appropriate amount made 
payable to the United States Department of Treasury. In the case of 
testimony of former OSC employees, the requester must pay applicable 
fees directly to the former OSC employee in accordance with 28 U.S.C. 
1821 or other applicable statutes.
    (e) Waiver or reduction of fees. The General Counsel, in his or her 
sole discretion, may, upon a showing of reasonable cause, waive or 
reduce any fees in connection with the testimony, production, or 
certification of records.
    (f) De minimis fees. Fees will not be assessed if the total charge 
would be $10.00 or less.

[81 FR 73020, Oct. 24, 2016]



                           Subpart D_Penalties



Sec.  1820.24  Penalties.

    (a) An employee who discloses official records or information or 
gives testimony relating to official information, except as expressly 
authorized by the OSC, or as ordered by a federal court after the OSC 
has had the opportunity to be heard, may face the penalties provided in 
18 U.S.C. 641 and other applicable laws. Additionally, former OSC 
employees are subject to the restrictions and penalties of 18 U.S.C. 207 
and 216.
    (b) A current OSC employee who testifies or produces official 
records and information in violation of this part shall be subject to 
disciplinary action.

[81 FR 73020, Oct. 24, 2016]



                  Subpart E_Conformity With Other Laws



Sec.  1820.25  Conformity with other laws.

    This regulation is not intended to conflict with 5 U.S.C. 
2302(b)(13).

[81 FR 73020, Oct. 24, 2016]



PART 1830_PRIVACY--Table of Contents



Sec.
1830.1 General provisions.
1830.2 Requirements for making Privacy Act requests.
1830.3 Medical records.
1830.4 Requirements for requesting amendment of records.
1830.5 Appeals.
1830.6 Exemptions.
1830.7 Fees.
1830.8 Other rights and services.

    Authority: 5 U.S.C. 552a(f), 1212(e).

    Source: 72 FR 56617, Oct. 4, 2007, unless otherwise noted.



Sec.  1830.1  General provisions.

    This part contains rules and procedures followed by the Office of 
Special Counsel (OSC) in processing requests for records under the 
Privacy Act (PA), at 5 U.S.C. 552a. Further information about access to 
OSC records generally is available on the agency's web site (http://
www.osc.gov/foia.htm).



Sec.  1830.2  Requirements for making Privacy Act requests.

    (a) How made and addressed. A request for OSC records under the 
Privacy Act should be made by writing to the agency. The request should 
be sent by regular mail addressed to: Privacy Act Officer, U.S. Office 
of Special Counsel, 1730 M Street, N.W. (Suite 218), Washington, DC 
20036-4505. Such requests may also be faxed to the Privacy Act Officer 
at the number provided on the FOIA/PA page of OSC's web site (see 
1830.1). For the quickest handling, both the request letter and envelope 
or any fax cover sheet should be clearly marked ``Privacy Act Request.'' 
A Privacy Act request may also be delivered in person at OSC's 
headquarters office in Washington, DC. Whether sent by mail or by fax, 
or delivered in person, a Privacy Act request will not be considered to 
have been received by OSC until it reaches the Privacy Act Officer.
    (b) Description of records sought. Requesters must describe the 
records sought in enough detail for them to be located with a reasonable 
amount of effort. Whenever possible, requests should describe any 
particular record sought, such as the date, title or name, author, 
recipient, and subject matter.

[[Page 360]]

    (c) Proof of identity. Requests received by mail, fax, or personal 
delivery should contain sufficient information to enable OSC to 
determine that the requester and the subject of the record are one and 
the same. To assist in this process, an individual should submit his or 
her name and home address, business title and address, and any other 
known identifying information such as an agency file number or 
identification number, a description of the circumstances under which 
the records were compiled, and any other information deemed necessary by 
OSC to properly process the request. An individual delivering a request 
in person may be required to present proof of identity, preferably a 
government-issued document bearing the individual's photograph.
    (d) Freedom of Information Act processing. OSC also processes all 
Privacy Act requests for access to records under the Freedom of 
Information Act, 5 U.S.C. 552, following the rules contained in part 
1820 of this chapter, which gives requesters the benefit of both 
statutes.



Sec.  1830.3  Medical records.

    When a request for access involves medical records that are not 
otherwise exempt from disclosure, the requesting individual may be 
advised, if it is deemed necessary by OSC, that the records will be 
provided only to a physician designated in writing by the individual. 
Upon receipt of the designation, the physician will be permitted to 
review the records or to receive copies by mail upon proper verification 
of identity.



Sec.  1830.4  Requirements for requesting amendment of records.

    (a) How made and addressed. Individuals may request amendment of 
records pertaining to them that are subject to amendment under the 
Privacy Act and this part. The request should be sent by regular mail 
addressed to: Privacy Act Officer, U.S. Office of Special Counsel, 1730 
M Street, N.W. (Suite 218), Washington, DC 20036-4505. Such requests may 
also be faxed to the Privacy Act Officer at the number provided on the 
FOIA/PA page of OSC's web site (see 1830.1). For the quickest handling, 
both the request letter and envelope or any fax cover sheet should be 
clearly marked ``Privacy Act Amendment Request.'' Whether sent by mail 
or by fax, a Privacy Act amendment request will not be considered to 
have been received by OSC until it reaches the Privacy Act Officer. A 
Privacy Act amendment request may also be delivered by person at OSC's 
headquarters office in Washington, DC.
    (b) Description of amendment sought. Requests for amendment should 
include identification of records together with a statement of the basis 
for the requested amendment and all available supporting documents and 
materials. Requesters must describe the amendment sought in enough 
detail for the request to be evaluated.
    (c) Proof of identity. Rules and procedures set forth in 1830.2(c) 
apply to requests made under this section.
    (d) Acknowledgement and response. Requests for amendment shall be 
acknowledged by OSC not later than 10 days (excluding Saturdays, 
Sundays, and legal holidays) after receipt by the Privacy Act Officer 
and a determination on the request shall be made promptly.



Sec.  1830.5  Appeals.

    (a) Appeals of adverse determinations. A requester may appeal a 
denial of a Privacy Act request for access to or amendment of records to 
the Legal Counsel and Policy Division, U.S. Office of Special Counsel, 
1730 M Street, N.W. (Suite 218), Washington, DC 20036-4505. The appeal 
must be in writing, and sent by regular mail or by fax. The appeal must 
be received by the Legal Counsel and Policy Division within 45 days of 
the date of the letter denying the request. For the quickest possible 
handling, the appeal letter and envelope or any fax cover sheet should 
be clearly marked ``Privacy Act Appeal.'' An appeal will not be 
considered to have been received by OSC until it reaches the Legal 
Counsel and Policy Division. The appeal letter may include as much or as 
little related information as the requester wishes, as long

[[Page 361]]

as it clearly identifies the OSC determination (including the assigned 
request number, if known) being appealed. An appeal ordinarily will not 
be acted on if the request becomes a matter of litigation.
    (b) Responses to appeals. The agency decision on an appeal will be 
made in writing. A final determination will be issued within 30 days 
(excluding Saturdays, Sundays, and legal holidays), unless, for good 
cause shown, OSC extends the 30-day period.



Sec.  1830.6  Exemptions.

    OSC will claim exemptions from the provisions of the Privacy Act at 
subsections (c)(3) and (d) as permitted by subsection (k) for records 
subject to the act that fall within the category of investigatory 
material described in paragraphs (2) and (5) and testing or examination 
material described in paragraph (6) of that subsection. The exemptions 
for investigatory material are necessary to prevent frustration of 
inquiries into allegations in prohibited personnel practice, unlawful 
political activity, whistleblower disclosure, Uniformed Services 
Employment and Reemployment Rights Act, and other matters under OSC's 
jurisdiction, and to protect identities of confidential sources of 
information, including in background investigations of OSC employees, 
contractors, and other individuals conducted by or for OSC. The 
exemption for testing or examination material is necessary to prevent 
the disclosure of information which would potentially give an individual 
an unfair competitive advantage or diminish the utility of established 
examination procedures. OSC also reserves the right to assert exemptions 
for records received from another agency that could be properly claimed 
by that agency in responding to a request. OSC may also refuse access to 
any information compiled in reasonable anticipation of a civil action or 
proceeding.



Sec.  1830.7  Fees.

    Requests for copies of records shall be subject to duplication fees 
set forth in part 1820 of this chapter.



Sec.  1830.8  Other rights and services.

    Nothing in this part shall be construed to entitle any person, as of 
right, to any service or to the disclosure of any record to which such 
person is not entitled under the Privacy Act.



PART 1840_SUBPOENAS--Table of Contents



    Authority: 5 U.S.C. 1212(e).



Sec.  1840.1  Service of subpoenas by mail.

    In addition to all other methods of authorized service, an Office of 
Special Counsel subpoena may be served by mailing a copy to the person 
at his or her residence or place of business by certified or registered 
mail.

[54 FR 47345, Nov. 14, 1989]



PART 1850_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP 
IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE OFFICE OF SPECIAL COUNSEL--
Table of Contents



Sec.
1850.101 Purpose.
1850.102 Application.
1850.103 Definitions.
1850.104-1850.109 [Reserved]
1850.110 Self-evaluation.
1850.111 Notice.
1850.112-1850.129 [Reserved]
1850.130 General prohibitions against discrimination.
1850.131-1850.139 [Reserved]
1850.140 Employment.
1850.141-1850.148 [Reserved]
1850.149 Program accessibility: Discrimination prohibited.
1850.150 Program accessibility: Existing facilities.
1850.151 Program accessibility: New construction and alterations.
1850.152-1850.159 [Reserved]
1850.160 Communications.
1850.161-1850.169 [Reserved]
1850.170 Compliance procedures.
1850.171-1850.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 53 FR 25881, 25885, July 8, 1988, unless otherwise noted. 
Redesignated at 54 FR 47345, Nov. 14, 1989.

[[Page 362]]



Sec.  1850.101  Purpose.

    The purpose of this regulation is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec.  1850.102  Application.

    This regulation (Sec. Sec.  1850.101-1850.170) applies to all 
programs or activities conducted by the agency, except for programs or 
activities conducted outside the United States that do not involve 
individuals with handicaps in the United States.



Sec.  1850.103  Definitions.

    For purposes of this regulation, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TDD's), interpreters, notetakers, written 
materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Historic preservation programs means programs conducted by the 
agency that have preservation of historic properties as a primary 
purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Individual with handicaps means any person who has a physical or 
mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment.
    As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addiction and 
alcoholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--

[[Page 363]]

    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Qualified individual with handicaps means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with handicaps who is a 
member of a class of persons otherwise entitled by statute, regulation, 
or agency policy to receive education services from the agency;
    (2) With respect to any other agency program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (3) With respect to any other program or activity, an individual 
with handicaps who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
    (4) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1613.702(f), which is made applicable 
to this regulation by Sec.  1850.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); and the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810). 
As used in this regulation, section 504 applies only to programs or 
activities conducted by Executive agencies and not to federally assisted 
programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.



Sec. Sec.  1850.104-1850.109  [Reserved]



Sec.  1850.110  Self-evaluation.

    (a) The agency shall, by September 6, 1989, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this regulation and, to the extent modification 
of any such policies and practices is required, the agency shall proceed 
to make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including individuals with handicaps or organizations representing 
individuals with handicaps, to participate in the self-evaluation 
process by submitting comments (both oral and written).
    (c) The agency shall, for at least three years following completion 
of the self-evaluation, maintain on file and make available for public 
inspection:
    (1) A description of areas examined and any problems identified; and
    (2) A description of any modifications made.



Sec.  1850.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this regulation and its 
applicability to the programs or activities conducted by the agency, and 
make such information available to them in such manner as the head of 
the agency finds necessary to apprise such persons of the protections 
against discrimination assured them by section 504 and this regulation.



Sec. Sec.  1850.112-1850.129  [Reserved]



Sec.  1850.130  General prohibitions against discrimination.

    (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in,

[[Page 364]]

be denied the benefits of, or otherwise be subjected to discrimination 
under any program or activity conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to provide 
qualified individuals with handicaps with aid, benefits, or services 
that are as effective as those provided to others;
    (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards;
    (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with handicaps from, deny them the benefits 
of, or otherwise subject them to discrimination under any program or 
activity conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
to discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licensees or certified 
entities that subject qualified individuals with handicaps to 
discrimination on the basis of handicap. However, the programs or 
activities of entities that are licensed or certified by the agency are 
not, themselves, covered by this regulation.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of individuals with handicaps is not prohibited by 
this regulation.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with handicaps.



Sec. Sec.  1850.131-1850.139  [Reserved]



Sec.  1850.140  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subject to discrimination in employment under any program 
or activity

[[Page 365]]

conducted by the agency. The definitions, requirements, and procedures 
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613, shall apply to employment in federally conducted programs or 
activities.



Sec. Sec.  1850.141-1850.148  [Reserved]



Sec.  1850.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  1850.150, no qualified 
individual with handicaps shall, because the agency's facilities are 
inaccessible to or unusable by individuals with handicaps, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec.  1850.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by individuals with handicaps. This paragraph 
does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps;
    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec.  1850.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
individuals with handicaps receive the benefits and services of the 
program or activity.
    (b) Methods--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by individuals with handicaps. The agency is 
not required to make structural changes in existing facilities where 
other methods are effective in achieving compliance with this section. 
The agency, in making alterations to existing buildings, shall meet 
accessibility requirements to the extent compelled by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), and any 
regulations implementing it. In choosing among available methods for 
meeting the requirements of this section, the agency shall give priority 
to those methods that offer programs and activities to qualified 
individuals with handicaps in the most integrated setting appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec.  1850.150(a) in historic preservation programs, the agency shall 
give priority to methods that provide physical access to individuals 
with handicaps. In cases where a physical alteration to an historic 
property is not required because of Sec.  1850.150(a) (2) or (3), 
alternative methods of achieving program accessibility include--
    (i) Using audio-visual materials and devices to depict those 
portions of an

[[Page 366]]

historic property that cannot otherwise be made accessible;
    (ii) Assigning persons to guide individuals with handicaps into or 
through portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by November 7, 1988, except 
that where structural changes in facilities are undertaken, such changes 
shall be made by September 6, 1991, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by March 6, 1989, a transition plan setting forth 
the steps necessary to complete such changes. The agency shall provide 
an opportunity to interested persons, including individuals with 
handicaps or organizations representing individuals with handicaps, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to individuals 
with handicaps;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.



Sec.  1850.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with handicaps. The definitions, requirements, and standards 
of the Architectural Barriers Act (42 U.S.C. 4151-4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Sec. Sec.  1850.152-1850.159  [Reserved]



Sec.  1850.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with handicaps.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used to communicate 
with persons with impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action

[[Page 367]]

would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec.  1850.160 would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action required to comply with this section would 
result in such an alteration or such burdens, the agency shall take any 
other action that would not result in such an alteration or such burdens 
but would nevertheless ensure that, to the maximum extent possible, 
individuals with handicaps receive the benefits and services of the 
program or activity.



Sec. Sec.  1850.161-1850.169  [Reserved]



Sec.  1850.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs and activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Managing Director for Operations shall be responsible for 
coordinating implementation of this section. Complaints may be sent to 
the Director for Management, Office of the Special Counsel, 1730 M 
Street, NW., Suite 201, Washington, DC 20036-4505.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate Government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with handicaps.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec.  1850.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[53 FR 25881, 25885, July 8, 1988, as amended at 53 FR 25881, July 8, 
1988. Redesignated and amended at 54 FR 47345, Nov. 14, 1989; 59 FR 
64844, Dec. 16, 1994; 65 FR 81325, Dec. 26, 2000]



Sec. Sec.  1850.171-1850.999  [Reserved]

                       PARTS 1851	1899 [RESERVED]

[[Page 369]]



               CHAPTER IX--APPALACHIAN REGIONAL COMMISSION




  --------------------------------------------------------------------
Part                                                                Page
1900            Employee responsibilities and conduct.......         371
1901-1999

 [Reserved]

[[Page 371]]



PART 1900_EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents



    Authority: 5 U.S.C. 7301, 40 U.S.C. App. 106.



Sec.  1900.100  Cross-references to employee ethical conduct standards 
and financial disclosure regulations.

    Officers and employees of the Appalachian Regional Commission 
Federal Staff are subject to the Standards of Ethical Conduct for 
Employees of the Executive Branch at 5 CFR part 2635 and the executive 
branch-wide financial disclosure regulations at 5 CFR part 2634.

[60 FR 62702, Dec. 7, 1995; 61 FR 13051, Mar. 26, 1996]

                       PARTS 1901	1999 [RESERVED]

[[Page 373]]



                CHAPTER XI--ARMED FORCES RETIREMENT HOME




  --------------------------------------------------------------------
Part                                                                Page
2100            Armed Forces Retirement Home Privacy Act 
                    procedures..............................         375
2101-2199

 [Reserved]

[[Page 375]]



PART 2100_ARMED FORCES RETIREMENT HOME PRIVACY ACT PROCEDURES--
Table of Contents



Sec.
2100.1 Purpose.
2100.2 Definitions.
2100.3 Procedure for requesting information.
2100.4 Requirements for identification.
2100.5 Access by individuals.
2100.6 Schedule of fees.
2100.7 Request for correction or amendment.
2100.8 Review of request for amendment.
2100.9 Appeal of denial to grant access or to amend records.
2100.10 Conditions of disclosure and accounting of certain disclosures.
2100.11 Penalties.
2100.12 Accounting of disclosure.
2100.13 Specific exemptions.

    Authority: Public Law 93-579, 88 Stat. 1896, 5 U.S.C. 552a(f).

    Source: 59 FR 30669, June 15, 1994, unless otherwise noted.



Sec.  2100.1  Purpose.

    Pursuant to the requirements of the Privacy Act of 1974, 5 U.S.C. 
552a, as amended, the following rules of procedures are established with 
respect to access and amendment of records maintained on the individual 
subjects of these records by the Armed Forces Retirement Home, which 
includes the continuing care retirement communities of the U.S. 
Soldiers' and Airmen's Home and the U.S. Naval Home. These rules do not 
apply to civilian employees' records maintained by the individual 
facilities which are covered by the Office of Personnel Management 
systems of records.



Sec.  2100.2  Definitions.

    (a) All terms used in this part which are defined in 5 U.S.C. 552a, 
as amended, shall have the same meaning herein.
    (b) Agency, as used in this part, means the Armed Forces Retirement 
Home (AFRH).
    (c) Facility or facilities refers to the continuing care retirement 
communities of the U.S. Soldiers' and Airmen's Home (USSAH) and the U.S. 
Naval Home (USNH), which are incorporated within the Armed Forces 
Retirement Home (AFRH).
    (d) Access means providing a copy of a record to, or allowing review 
of the original record by, the individual or the individual's authorized 
representative, legal guardian or conservator.



Sec.  2100.3  Procedure for requesting information.

    Individuals shall submit written inquiries regarding all AFRH 
records to the appropriate facility at the following addresses: 
Associate Director, Resource Management, U.S. Soldiers' and Airmen's 
Home, 3700 N. Capitol Street, NW., Washington, DC 20317-0002; or, 
Administrative Services, U.S. Naval Home, 1800 Beach Drive, Gulfport, 
Mississippi 39507-1597. All personal (walk-in) requests will require 
some form of common identification.



Sec.  2100.4  Requirements for identification.

    Only upon proper identification will any individual be granted 
access to records which pertain to him/her. Identification is required 
both for accurate record identification and to avoid disclosing records 
to unauthorized individuals. Individuals must provide their full name 
and as much information as possible in order that a proper search for 
records can be accomplished. Requests made by mail shall be signed by 
the individual requesting his/her records. Inclusion of a telephone 
number for the requester is recommended to expedite certain matters. 
Requesters applying in person must provide an identification with 
photograph, such as a driver's license, military or annuitant 
identification card, or any official document as acceptable 
identification validation. Personal requests can only be accepted on 
regularly scheduled workdays (Monday through Friday, excluding Federal 
holidays) between the hours of 7:30 a.m. and 3:30 p.m.



Sec.  2100.5  Access by individuals.

    (a) No individual will be allowed access to any information compiled 
or maintained in reasonable anticipation of civil actions or 
proceedings, or otherwise exempt under Sec.  2100.12. Requests for 
pending investigations will be denied and the requester instructed to

[[Page 376]]

forward another request giving adequate time for the investigation to be 
completed. Requesters shall be provided the telephone number so they can 
call and check on the status in order to know when to resubmit the 
request.
    (b) Any individual may authorize the facility to provide a copy of 
his/her records to a third party. This authorization must be in writing 
and shall be provided to the facility with the initial request.
    (c) Access to records may be authorized to the legal guardian or 
conservator acting on behalf of an individual who has been declared to 
be incompetent due to physical or mental incapacity or age by a court of 
competent jurisdiction.
    (d) When an individual requesting access to his/her record wishes to 
be accompanied by another individual during the course of the 
examination of the record, the individual making the request shall 
submit to the official having operational control of the record, a 
signed statement authorizing that person access to the record.
    (e) If medical records are requested and a USSAH or USNH 
practitioner believes that access to the records by the subject could 
harm that person's mental or physical health, the requester will be 
asked to name a practitioner to receive the records. If this requirement 
poses a hardship on the individual, he/she will be offered the service 
of an USSAH or USNH practitioner other than the one who provided 
treatment. If the individual refuses to name a recipient, the record 
will not be released.



Sec.  2100.6  Schedule of fees.

    (a) Individuals will not be charged for:
    (1) The search and review of the record.
    (2) Copies of the record produced as a necessary part of the process 
of making the record available for access; or,
    (3) Copies of the requested record when it has been determined that 
access can only be accomplished by providing a copy of the record 
through the mail.
    (b) Waiver. The official having operational control at the 
appropriate facility may at no charge, provide copies of a record if it 
is determined the production of the copies is in the interest of the 
Government.
    (c) Fee Schedule and method of payment. With the exception of 
paragraphs (a) and (b) of this section, fees will be charged as 
indicated below:
    (1) Records will be duplicated at a rate of $.10 per page for all 
copying of 5 pages or more. There is no charge for duplication of 4 or 
fewer pages.
    (2) Where it is anticipated that the fees chargeable under this 
section will amount to more than $30.00, the requester shall be promptly 
notified of the amount of the anticipated fee or such portion thereof as 
can readily be estimated. In instances where the estimated fees will 
exceed $30.00, an advance deposit may be required. The notice or request 
for advance deposit shall extend an offer to the requester in order to 
reformulate the request in a manner which will reduce the fees, yet 
still meet the needs of the requester.
    (3) Fees should be paid in full prior to issuance of requested 
copies. In the event the requester is in arrears for previous requested 
copies, no subsequent request will be processed until the arrears have 
been paid in full.
    (4) Remittances shall be in the form either of a personal check, 
bank draft drawn on a bank in the United States, or a postal money 
order. Remittances shall be made payable to the facility to which the 
request is being made, and mailed or delivered to the appropriate 
facility (see Sec.  2100.3 of this part).
    (5) A receipt for fees paid will be given upon request.



Sec.  2100.7  Request for correction or amendment.

    (a) Requests to correct or amend a file shall be addressed to the 
system manager in which the file is located. The request must reasonably 
describe the record to be amended, the items to be changed as 
specifically as possible, the type of amendment (e.g., deletion, 
correction, amendment), and the reason for the amendment. The request 
should also include the reasons why the requester believes the record is 
not accurate, relevant, timely, or complete. The burden of proof will be 
upon the individual to furnish sufficient facts to persuade the change 
of the

[[Page 377]]

record of the inaccuracy, irrelevancy, timeliness, or incompleteness of 
the record. Normally all documents submitted, to include court orders, 
shall be certified. Amendments under this part are limited to correcting 
factual matters and not matters of official judgement or opinions.
    (b) Requirements of identification as outlined in Sec.  2100.4 apply 
to requests to correct or amend a file.
    (c) Incomplete requests shall not be honored, but the requester 
shall be contacted for the additional information needed to process the 
request.
    (d) The amendment process is not intended to permit the alteration 
of evidence presented in the course of judicial or quasi-judicial 
proceedings. Any amendments or changes to these records normally are 
made through the specific procedures established for the amendment of 
such records.
    (e) When records sought to be amended are actually covered by 
another issuance, the administrative procedures under that issuance must 
be exhausted before using the procedures under the Privacy Act.



Sec.  2100.8  Review of request for amendment.

    (a) A written acknowledgement of the receipt of a request for 
amendment of a record will be provided to the requester within 10 
working days, unless final action regarding approval or denial will 
constitute acknowledgment.
    (b) Where there is a determination to grant all or a portion of a 
request to amend a record, the record shall be promptly amended and the 
requesting individual notified. Individuals, agencies or components 
shown by disclosure accounting records to have received copies of the 
record, or to whom disclosure has been made, will be notified of the 
amendment by the system manager in which the file is located.
    (c) Where there is a determination to deny all or a portion of a 
request to amend a record, a designated official will promptly advise 
the requesting individual of the specifics of the refusal and the 
reasons; and inform the individual that he/she may request a review of 
the denial(s).



Sec.  2100.9  Appeal of denial to grant access or to amend records.

    (a) All appeals of denial to grant access or to amend records should 
be addressed to the appropriate facility at the following addresses: 
Associate Director, Resource Management, U.S. Soldiers' and Airmen's 
Home, 3700 N. Capitol Street, NW., Washington, DC 20317-0002; or, 
Administrative Services, U.S. Naval Home, 1800 Beach Drive, Gulfport, 
Mississippi 39507-1597. The appeal should be concise and should specify 
the reasons the requester believes that the initial action was not 
satisfactory. If an appeal is denied, the designated official will 
notify the requester of the reason for denial and of the right to 
judicial review pursuant to 5 U.S.C. 552a(g). If an initial denial of a 
request to amend records is upheld, the requestor will also be advised 
of his or her right to file a statement of dispute disagreeing with the 
denial and such statement will be provided to all future users of the 
file.
    (b) If the designated official decides to amend the record, the 
requester and all previous recipients of the disputed information will 
be notified of the amendment. If the appeal is denied, the designated 
official will notify the requester of the reason of the denial, of the 
requester's right to file a statement of dispute disagreeing with the 
denial, that such statement of dispute will be retained in the file, 
that the statement will be provided to all future users of the file, and 
that the requester may file suit in a Federal district court to contest 
the decision not to amend the record.
    (c) The designated official will respond to all appeals within 30 
working days or will notify the requester of an estimated date of 
completion if the 30 day limit cannot be met.



Sec.  2100.10  Conditions of disclosure and accounting of certain disclosures.

    No record containing personally identifiable information within an 
AFRH system of records shall be disclosed by any means to any person or 
agency outside the AFRH, except by written request or prior written 
consent of the individual subject of the record, or as provided for in 
the Privacy Act of 1974,

[[Page 378]]

as amended, unless when such disclosure is:
    (a) To those officers and employees of the agency which maintains 
the record and who have a need for the record in the performance of 
their duties;
    (b) Required under 5 U.S.C. 552;
    (c) For a routine use of the record compatible with the purpose for 
which it was collected;
    (d) To the Bureau of the Census for purposes of planning or carrying 
out a census or survey or related activity pursuant to 13 U.S.C.;
    (e) To a recipient who has provided the AFRH with advance adequate 
written assurance that the record will be used solely as a statistical 
research or reporting record, and the record is to be transferred in a 
form that is not individually identifiable;
    (f) To the National Archives of the United States as a record which 
has sufficient historical or other value to warrant its continued 
preservation by the U.S. Government or for evaluation by the Archivist 
of the United States, or his/her designee, to determine whether the 
record has such value;
    (g) To another agency or to an instrumentality of any governmental 
jurisdiction within or under the control of the United States for a 
civil or criminal law enforcement activity if the activity is authorized 
by law, and if the head of the agency or instrumentality, has made a 
written request to the agency which maintains the record specifying the 
particular portion desired and the law enforcement activity for which 
the record is sought;
    (h) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of an individual if upon such disclosure 
notification is transmitted to the last known address of such 
individual;
    (i) To either House of Congress, or, to the extent of matter within 
its jurisdiction, any committee or subcommittee thereof, any joint 
committee of Congress or subcommittee of any such joint committee;
    (j) To the Comptroller General, or any authorized representatives, 
in the course of the performance of the duties of the General Accounting 
Office;
    (k) Pursuant to the order of a court of competent jurisdiction; or
    (l) To a consumer reporting agency in accordance with 31 U.S.C. 
3711(f).



Sec.  2100.11  Penalties.

    (a) An individual may bring a civil action against the AFRH to 
correct or amend the record, or where there is a refusal to comply with 
an individual request or failure to maintain any record with accuracy, 
relevance, timeliness and completeness, so as to guarantee fairness, or 
failure to comply with any other provision of the Privacy Act. The court 
may order correction or amendment of records. The court may enjoin the 
AFRH from withholding the records and order the production of the 
record.
    (b) Where it is determined that the action was willful or 
intentional with respect to 5 U.S.C. 552a(g)(1)(C) or (D), the United 
States may be liable for the actual damages sustained.
    (c) Criminal penalties may be imposed against an officer or employee 
of the USSAH or USNH who discloses material, which he/she knows is 
prohibited from disclosure, or who willfully maintains a system of 
records without compliance with the notice requirements.
    (d) Criminal penalties may be imposed against any person who 
knowingly and willfully requests or obtains any record concerning 
another individual from an agency under false pretenses.
    (e) All of these offenses are misdemeanors with a fine not to exceed 
$5,000.



Sec.  2100.12  Accounting of disclosure.

    (a) The AFRH or agency will maintain a record of disclosures in 
cases where records about the individual are disclosed from a system of 
records except--
    (1) When the disclosure is made pursuant to the Freedom of 
Information Act, 5 U.S.C. 552, as amended; or
    (2) When the disclosure is made to those officers and employees of 
the AFRH who have a need for the record in the performance of their 
duties.
    (b) This accounting of the disclosures will be retained for a least 
5 years or for the life of the record, whichever is longer, and will 
contain the following information:

[[Page 379]]

    (1) A brief description of the record disclosed;
    (2) The date, nature, and purpose for the disclosure; and,
    (3) The name and address of the person, agency, or other entity to 
whom the disclosure is made.
    (c) Except for the accounting of disclosure made to agencies, 
individuals, or entities in law enforcement activities or disclosures 
made from the AFRH exempt systems of records, the accounting of 
disclosures will be made available to the data subject upon request in 
accordance with the access procedures of this part.



Sec.  2100.13  Specific exemptions.

    Subsection (k) of 5 U.S.C. 552a authorizes the AFRH to adopt rules 
designating eligible system of records as exempt from certain 
requirements of 5 U.S.C. 552a. To be eligible for a specific exemption 
under the authority of 5 U.S.C. 552a(k), the pertinent records within a 
designated system must contain one or more of the following:
    (a) Investigative records compiled for law enforcement purposes. If 
this information has been used to deny someone a right however, the AFRH 
must release it unless doing so would reveal the identify of a 
confidential source ((k)(2) exemption).
    (b) Records used only for statistical, research, or other evaluation 
purposes, and which are not used to make decisions on the rights, 
benefits, or privileges of individuals, except as permitted by 13 U.S.C. 
8 (Use of census data) ((k)(4) exemption).
    (c) Data compiled to determine suitability, eligibility, or 
qualifications for Federal service, Federal contracts, or access to 
classified information. This information may be withheld only if 
disclosure would reveal the identity of a confidential source ((k)(5) 
exemption).
    (d) Test or examination material used solely to determine individual 
qualifications for appointment or promotion in the Federal service, the 
disclosure of which would compromise the objectivity or fairness of the 
testing or examination process ((k)(6) exemption).

                       PARTS 2101	2199 [RESERVED]

[[Page 381]]



 CHAPTER XIV--FEDERAL LABOR RELATIONS AUTHORITY, GENERAL COUNSEL OF THE 
  FEDERAL LABOR RELATIONS AUTHORITY AND FEDERAL SERVICE IMPASSES PANEL




  --------------------------------------------------------------------

        SUBCHAPTER A--TRANSITION RULES AND REGULATIONS [RESERVED]
Part                                                                Page
2400-2410

 [Reserved]

                    SUBCHAPTER B--GENERAL PROVISIONS
2411            Availability of official information........         383
2412            Privacy.....................................         397
2413            Open meetings...............................         402
2414            Ex parte communications.....................         404
2415            Employee responsibilities and conduct.......         407
2416            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the Federal 
                    Labor Relations Authority...............         407
2417            Testimony by employees relating to official 
                    information and production of official 
                    records in legal proceedings............         412
2418            FLRA debt collection........................         418
 SUBCHAPTER C--FEDERAL LABOR RELATIONS AUTHORITY AND GENERAL COUNSEL OF 
                  THE FEDERAL LABOR RELATIONS AUTHORITY
2420            Purpose and scope...........................         435
2421            Meaning of terms as used in this subchapter.         435
2422            Representation proceedings..................         438
2423            Unfair labor practice proceedings...........         450
2424            Negotiability proceedings...................         464
2425            Review of arbitration awards................         473
2426            National consultation rights and 
                    consultation rights on Government-wide 
                    rules or regulations....................         477
2427            General statements of policy or guidance....         481
2428            Enforcement of Assistant Secretary standards 
                    of conduct decisions and orders.........         482

[[Page 382]]

2429            Miscellaneous and general requirements......         482
2430            Awards of attorney fees and other expenses..         491
              SUBCHAPTER D--FEDERAL SERVICE IMPASSES PANEL
2470            General.....................................         497
2471            Procedures of the panel.....................         497
2472            Impasses arising pursuant to agency 
                    determinations not to establish or to 
                    terminate flexible or compressed work 
                    schedules...............................         502
2473            Subpoenas...................................         506
2474-2499

 [Reserved]

Appendix A to 5 CFR Chapter XIV--Current Addresses and 
  Geographic Jurisdictions..................................         507
Appendix B to 5 CFR Chapter XIV--Memorandum Describing the 
  Authority and Assigned Responsibilities of the General 
  Counsel of the Federal Labor Relations Authority..........         508

[[Page 383]]



        SUBCHAPTER A_TRANSITION RULES AND REGULATIONS [RESERVED]





                     SUBCHAPTER B_GENERAL PROVISIONS



                       PARTS 2400	2410 [RESERVED]



PART 2411_AVAILABILITY OF OFFICIAL INFORMATION--Table of Contents



Sec.
2411.1 Purpose.
2411.2 Scope.
2411.3 Delegation of authority.
2411.4 Information policy.
2411.5 Procedure for obtaining information.
2411.6 Identification of information requested.
2411.7 Format of disclosure.
2411.8 Time limits for processing requests.
2411.9 Business information.
2411.10 Appeal from denial of request.
2411.11 Modification of time limits.
2411.12 Effect of failure to meet time limits.
2411.13 Fees.
2411.14 Record retention and preservation.
2411.15 Annual report.

    Authority: 5 U.S.C. 552, as amended; Freedom of Information 
Improvement Act of 2016, Pub. L. 114-185, 130 Stat. 528; Openness 
Promotes Effectiveness in our National Government Act of 2007 (OPEN 
Government Act), Pub. L. 110-175, 121 Stat. 2524.

    Source: 74 FR 50674, Oct. 1, 2009, unless otherwise noted.



Sec.  2411.1  Purpose.

    This part contains the rules that the Federal Labor Relations 
Authority (FLRA), including the three-Member Authority component 
(Authority), the General Counsel of the FLRA (General Counsel), the 
Federal Service Impasses Panel (Panel), and the Inspector General of the 
FLRA (IG), follow in processing requests for information under the 
Freedom of Information Act, as amended, 5 U.S.C. 552 (FOIA) These 
regulations should be read in conjunction with the text of the FOIA and 
the Uniform Freedom of Information Fee Schedule and Guidelines published 
by the Office of Management and Budget. Requests by individuals for 
records about themselves under the Privacy Act of 1974, 5 U.S.C. 552a, 
are processed in accordance with the Authority's Privacy Act 
regulations, see 5 CFR part 2412, as well as under this subpart.

[82 FR 2850, Jan. 10, 2017]



Sec.  2411.2  Scope.

    (a) For the purpose of this part, the term record and any other term 
used in reference to information includes any information that would be 
subject to the requirements of 5 U.S.C. 552 when maintained by the 
Authority, the General Counsel, the Panel, or the IG in any format, 
including an electronic format. All written requests for information 
from the public that are not processed under parts 2412 and 2417 of this 
chapter will be processed under this part. The Authority, the General 
Counsel, the Panel, and the IG may each continue, regardless of this 
part, to furnish the public with the information that it has furnished 
in the regular course of performing its official duties, unless 
furnishing the information would violate the Privacy Act of 1974, 5 
U.S.C. 552a, or another law.
    (b) When the subject of a record, or the subject's representative, 
requests the record from a Privacy Act system of records, as that term 
is defined by 5 U.S.C. 552a(a)(5), and the FLRA retrieves the record by 
the subject's name or other personal identifier, the FLRA will handle 
the request under the procedures and subject to the fees set out in part 
2412. When a third party requests access to those records, without the 
written consent of the subject of the record, the FLRA will process the 
request under this part.
    (c) Nothing in 5 U.S.C. 552 or this part requires that the 
Authority, the General Counsel, the Panel, or the IG, as appropriate, 
create a new record in order to respond to a request for the records.

[82 FR 2850, Jan. 10, 2017]



Sec.  2411.3  Delegation of authority.

    (a) Chief FOIA Officer. The Chairman of the FLRA designates the 
Chief FOIA

[[Page 384]]

Officer, who has agency-wide responsibility for the efficient and 
appropriate compliance with the FOIA. The Chief FOIA Officer monitors 
the implementation of the FOIA throughout the agency.
    (b) Authority/General Counsel/Panel/IG. Regional Directors of the 
Authority, the FOIA Officer of the Office of the General Counsel, 
Washington, DC, the Solicitor of the Authority, the Executive Director 
of the Panel, and the IG are delegated the exclusive authority to act 
upon all requests for information, documents, and records that are 
received from any person or organization under Sec.  2411.5(a) and (b).
    (c) FOIA Public Liaison(s). The Chief FOIA Officer shall designate 
the FOIA Public Liaison(s), who shall serve as the supervisory 
official(s) to whom a FOIA requester can raise concerns about the 
service that the FOIA requester has received following an initial 
response.

[82 FR 2850, Jan. 10, 2017]



Sec.  2411.4  Information policy.

    (a)(1) It is the policy of the Authority, the General Counsel, the 
Panel, and the IG to make available for public inspection in an 
electronic format:
    (i) Final decisions and orders of the Authority and administrative 
rulings of the General Counsel; procedural determinations, final 
decisions and orders of the Panel; factfinding and arbitration reports; 
and reports and executive summaries of the IG;
    (ii) Statements of policy and interpretations that have been adopted 
by the Authority, the General Counsel, the Panel, or the IG and that are 
not published in the Federal Register;
    (iii) Administrative staff manuals and instructions to staff that 
affect a member of the public (except those establishing internal 
operating rules, guidelines, and procedures for the investigation, 
trial, and settlement of cases);
    (iv) Copies of all records, regardless of form or format, that have 
been released to any person under 5 U.S.C. 552(a)(3) and that:
    (A) Because of the nature of their subject matter, the Authority, 
the General Counsel, the Panel, or the IG determines have become, or are 
likely to become, the subject of subsequent requests for substantially 
the same records; or
    (B) Have been requested three or more times; and
    (v) A general index of the records referred to in paragraph (a)(i)-
(iv) of this section.
    (2) It is the policy of the Authority, the General Counsel, the 
Panel, and the IG to make promptly available for public inspection in an 
electronic format, upon request by any person, other records where the 
request reasonably describes such records and otherwise conforms to the 
procedures of this part.
    (b)(1) Any person may examine and copy items in paragraphs (a)(1)(i) 
through (iv) of this section, at each regional office of the Authority 
and at the offices of the Authority, the General Counsel, the Panel, and 
the IG, respectively, in Washington, DC, under conditions prescribed by 
the Authority, the General Counsel, the Panel, and the IG, respectively, 
and at reasonable times during normal working hours, so long as it does 
not interfere with the efficient operations of the Authority, the 
General Counsel, the Panel, or the IG. To the extent required to prevent 
a clearly unwarranted invasion of personal privacy, identifying details 
may be deleted and, in each case, the justification for the deletion 
shall be fully explained in writing. On the released portion of the 
record, the amount of information deleted, and the exemption under which 
the deletion is made, shall be indicated unless an interest protected by 
the exemption would be harmed.
    (2) All records covered by this section are available on the FLRA's 
Web site (https://www.flra.gov/elibrary).
    (c) The Authority, the General Counsel, the Panel, and the IG shall 
maintain and make available for public inspection in an electronic 
format the current indexes and supplements to the records that are 
required by 5 U.S.C. 552(a)(2) and, as appropriate, a record of the 
final votes of each Member of the Authority and of the Panel in every 
agency proceeding. Any person may examine and copy such document or 
record of the Authority, the General

[[Page 385]]

Counsel, the Panel, or the IG at the offices of either the Authority, 
the General Counsel, the Panel, or the IG, as appropriate, in 
Washington, DC, under conditions prescribed by the Authority, the 
General Counsel, the Panel, or the IG at reasonable times during normal 
working hours, so long as it does not interfere with the efficient 
operations of the Authority, the General Counsel, the Panel, or the IG.
    (d) All agency records, except those exempt from mandatory 
disclosure by one or more provisions of 5 U.S.C. 552(b), will be made 
promptly available to any person submitting a written request in 
accordance with the procedures of this part.
    (e)(1) The formal documents constituting the record in a case or 
proceeding are matters of official record and, until destroyed pursuant 
to applicable statutory authority, are available to the public for 
inspection and copying at the appropriate regional office of the 
Authority, or the offices of the Authority, the General Counsel, the 
Panel, or the IG in Washington, DC, as appropriate, under conditions 
prescribed by the Authority, the General Counsel, the Panel, or the IG 
at reasonable times during normal working hours so long as it does not 
interfere with the efficient operations of the Authority, the General 
Counsel, the Panel, or the IG.
    (2) The Authority, the General Counsel, the Panel, or the IG, as 
appropriate, shall certify copies of the formal documents upon request 
made a reasonable time in advance of need and payment of lawfully 
prescribed costs.
    (f)(1) Copies of forms prescribed by the General Counsel for the 
filing of charges and petitions may be obtained without charge from any 
regional office of the Authority or on the Authority's Web site at: 
https://www.flra.gov/resources-training/resources/forms-checklists.
    (2) Copies of forms prescribed by the Panel for the filing of 
requests may be obtained without charge from the Panel's offices in 
Washington, DC or on the Authority's Web site at: https://www.flra.gov/
resources-training/resources/forms-checklists.
    (3) Copies of optional forms for filing exceptions or appeals with 
the Authority may be obtained without charge from the Office of Case 
Intake and Publication at the Authority's offices in Washington, DC or 
on the Authority's Web site at: https://www.flra.gov/resources-training/
resources/forms-checklists.

[74 FR 50674, Oct. 1, 2009, as amended at 82 FR 2850, Jan. 10, 2017]



Sec.  2411.5  Procedure for obtaining information.

    (a) Any person who desires to inspect or copy any records, 
documents, or other information of the Authority, the General Counsel, 
the Panel, or the IG, covered by this part, other than those specified 
in Sec.  2411.4(a)(1) and (c), shall submit an electronic written 
request via the FOIAOnline system at https://foiaonline.regulations.gov 
or a written, facsimiled, or email request (see office and email 
addresses listed at https://www.flra.gov/foia_contact and in Appendix A 
to 5 CFR Chapter XIV) as follows:
    (1) If the request is for records, documents, or other information 
in a regional office of the Authority, it should be made to the 
appropriate Regional Director;
    (2) If the request is for records, documents, or other information 
in the Office of the General Counsel and located in Washington, DC, it 
should be made to the FOIA Officer, Office of the General Counsel, 
Washington, DC;
    (3) If the request is for records, documents, or other information 
in the offices of the Authority in Washington, DC, it should be made to 
the Solicitor of the Authority, Washington, DC;
    (4) If the request is for records, documents, or other information 
in the offices of the Panel in Washington, DC, it should be made to the 
Executive Director of the Panel, Washington, DC; and
    (5) If the request is for records, documents or other information in 
the offices of the IG in Washington, DC, it should be made to the IG, 
Washington, DC.
    (b) Each request under this part should be clearly and prominently 
identified as a request for information under the FOIA and, if submitted 
by mail or otherwise submitted in an envelope or other cover, should be 
clearly identified as such on the envelope or

[[Page 386]]

other cover. A request shall be considered an agreement by the requester 
to pay all applicable fees charged under Sec.  2411.13, up to $25.00, 
unless the requester seeks a waiver of fees. When making a request, the 
requester may specify a willingness to pay a greater or lesser amount. 
Fee charges will be assessed for the full allowable direct costs of 
document search, review, and duplication, as appropriate, in accordance 
with Sec.  2411.13. If a request does not comply with the provisions of 
this paragraph, it shall not be deemed received by the appropriate 
Regional Director, the FOIA Officer of the General Counsel, the 
Solicitor of the Authority, the Executive Director of the Panel, or the 
IG, as appropriate.

[82 FR 2851, Jan. 10, 2017]



Sec.  2411.6  Identification of information requested.

    (a) Reasonably describe and identify records. Each request under 
this part shall reasonably describe the records being sought in a way 
that the FLRA can be identify and locate them. A request shall be 
legible and include all pertinent details that will help identify the 
records sought. Before submitting a request, a requester may contact the 
FLRA's Chief FOIA Officer or FOIA Public Liaison to discuss the records 
that he or she seeks and to receive assistance in describing the 
records.
    (b) Agency efforts to further identify records. If the description 
does not meet the requirements of paragraph (a) of this section, the 
officer processing the request shall so notify the person making the 
request and indicate the additional information needed. Every reasonable 
effort shall be made to assist in the identification and location of the 
records sought. A requester who is attempting to reformulate or modify 
his or her request may discuss the request with the FLRA's Chief FOIA 
Officer or FOIA Public Liaison.
    (c) Public logs. Upon receipt of a request for records, the 
appropriate Regional Director, the FOIA Officer of the General Counsel, 
the Solicitor of the Authority, the Executive Director of the Panel, or 
the IG, as appropriate, shall enter it in a public log. The log shall 
state: The request number; the date received; the nature of the records 
requested; the action taken on the request; the agency's response date; 
any exemptions that were applied (if applicable) and their descriptions; 
and whether any fees were charged for processing the request.
    (d) Consultation, referral, and coordination. When reviewing records 
located in response to a request, the Authority, the General Counsel, 
the Panel, or the IG will determine whether another agency of the 
Federal Government is better able to determine whether the record is 
exempt from disclosure under the FOIA. As to any such record, the 
Authority, the General Counsel, the Panel, or the IG will proceed in one 
of the following ways:
    (1) Consultation. When records originated with the Authority, the 
General Counsel, the Panel, or the IG, but contain within them 
information of interest to another agency or other Federal Government 
component, the Authority, the General Counsel, the Panel, or the IG will 
typically consult with that other entity prior to making a release 
determination.
    (2) Referral. (i) When the Authority, the General Counsel, the 
Panel, or the IG believes that a different agency or component is best 
able to determine whether to disclose the record, the Authority, the 
General Counsel, the Panel, or the IG will typically refer the 
responsibility for responding to the request regarding that record to 
that agency or component. Ordinarily, the agency or component that 
originated the record is presumed to be the best agency or component to 
make the disclosure determination. However, if the FLRA and the 
originating agency or component jointly agree that the FLRA is in the 
best position to respond regarding the record, then the record may be 
handled as a consultation.
    (ii) Whenever the Authority, the General Counsel, the Panel, or the 
IG refers any part of the responsibility for responding to a request to 
another Federal agency, it must document the referral, maintain a copy 
of the record that it refers, and notify the requester of the referral, 
informing the requester of the name(s) of the agency to which the record 
was referred, including that agency's FOIA contact information.

[[Page 387]]

    (3) Coordination. The standard referral procedure is not appropriate 
where disclosure of the identity of the agency to which the referral 
would be made could harm an interest protected by an applicable 
exemption, such as the exemptions that protect personal privacy or 
national-security interests. In such instances, in order to avoid harm 
to an interest protected by an applicable exemption, the Authority, the 
General Counsel, the Panel, or the IG should coordinate with the 
originating agency to seek its views on the disclosability of the 
record. The release determination for the record that is the subject of 
the coordination should then be conveyed to the requester by the 
Authority, the General Counsel, the Panel, or the IG.

[82 FR 2851, Jan. 10, 2017]



Sec.  2411.7  Format of disclosure.

    (a) After a determination has been made to grant a request in whole 
or in part, the appropriate Regional Director, the FOIA Officer of the 
General Counsel, the Solicitor of the Authority, the Executive Director 
of the Panel, or the IG, as appropriate, will notify the requester in 
writing. The notice will describe the manner in which the record will be 
disclosed and will inform the requester of the availability of the 
Authority's FOIA Public Liaison to offer assistance. The appropriate 
Regional Director, the FOIA Officer of the General Counsel, the 
Solicitor of the Authority, the Executive Director of the Panel, or the 
IG, as appropriate, will provide the record in the form or format 
requested if the record is readily reproducible in that form or format, 
provided the requester has agreed to pay and/or has paid any fees 
required by Sec.  2411.13 of this part. The appropriate Regional 
Director, the FOIA Officer of the General Counsel, the Solicitor of the 
Authority, the Executive Director of the Panel, or the IG, as 
appropriate, will determine on a case-by-case basis what constitutes a 
readily reproducible format. These offices will make a reasonable effort 
to maintain their records in commonly reproducible forms or formats.
    (b) Alternatively, the appropriate Regional Director, the FOIA 
Officer of the General Counsel, the Solicitor of the Authority, the 
Executive Director of the Panel, or the IG, as appropriate, may make a 
copy of the releasable portions of the record available to the requester 
for inspection at a reasonable time and place. The procedure for such an 
inspection will not unreasonably disrupt the operations of the office.

[82 FR 2852, Jan. 10, 2017]



Sec.  2411.8  Time limits for processing requests.

    (a) The 20-day period (excepting Saturdays, Sundays, and legal 
public holidays), established in this section, shall commence on the 
date on which the request is first received by the appropriate component 
of the agency (Regional Director, the FOIA Officer of the Office of the 
General Counsel, the Solicitor of the Authority, the Executive Director 
of the Panel, or the IG), but in any event not later than 10 days after 
the request is first received by any FLRA component responsible for 
receiving FOIA requests under part 2411. The 20-day period does not run 
when:
    (1) The agency component makes one request to the requester for 
information and is awaiting such information that it has reasonably 
requested from the requester; or
    (2) It is necessary to clarify with the requester issues regarding 
fee assessment.
    (3) The agency component's receipt of the requested information or 
clarification triggers the commencement of the 20-day period.
    (b) A request for records shall be logged in by the appropriate 
Regional Director, the FOIA Officer of the General Counsel, the 
Solicitor of the Authority, the Executive Director of the Panel, or the 
IG, as appropriate, pursuant to Sec.  2411.6(c). All requesters must 
reasonably describe the records sought. An oral request for records 
shall not begin any time requirement. A written request for records sent 
to other than the appropriate officer will be forwarded to that officer 
by the receiving officer, but, in that event, the applicable time limit 
for response shall begin as set forth in paragraph (a) of this section.
    (c) Except as provided in Sec.  2411.11, the appropriate Regional 
Director, the FOIA Officer of the General Counsel,

[[Page 388]]

the Solicitor of the Authority, the Executive Director of the Panel, or 
the IG, as appropriate, shall, within 20 working days following receipt 
of the request, as provided by paragraph (a) of this section, respond in 
writing to the requester, determining whether, or the extent to which, 
the request shall be complied with.
    (1) If all of the records requested have been located, and a final 
determination has been made with respect to disclosure of all of the 
records requested, the response shall so state.
    (2) If all of the records have not been located, or a final 
determination has not been made with respect to disclosure of all of the 
records requested, the response shall state the extent to which the 
records involved shall be disclosed pursuant to the rules established in 
this part.
    (3) If the request is expected to involve allowed charges in excess 
of $250.00, the response shall specify or estimate the fee involved and 
shall require prepayment of any charges in accordance with the 
provisions of paragraph (g) of Sec.  2411.13 before the request is 
processed further.
    (4) Whenever possible, subject to the provisions of paragraph (g) of 
Sec.  2411.13, the response relating to a request for records that 
involves a fee of less than $250.00 shall be accompanied by the 
requested records. Where this is not possible, the records shall be 
forwarded as soon as possible thereafter, consistent with other 
obligations of the Authority, the General Counsel, the Panel, or the IG.
    (5) Search fees shall not be assessed to requesters (or duplication 
fees in the case of an educational or noncommercial scientific 
institution, whose purpose is scholarly or scientific research; or a 
representative of the news media requester, as defined by Sec.  
2411.13(a)(8)) under this subparagraph if an agency component fails to 
comply with any of the deadlines in 5 U.S.C. 552(a)(4)(A), except as 
provided in the following paragraphs (c)(5)(i) through (iii):
    (i) If the Authority, the General Counsel, the Panel, or the IG has 
determined that unusual circumstances apply (as the term is defined in 
Sec.  2411.11(b)) and the Authority, the General Counsel, the Panel, or 
the IG provided a timely written notice to the requester in accordance 
with Sec.  2411.11(a), a failure described in this paragraph (c)(5) is 
excused for an additional 10 days. If the Authority, the General 
Counsel, the Panel, or the IG fails to comply with the extended time 
limit, the Authority, the General Counsel, the Panel, or the IG may not 
assess any search fees (or, in the case of a requester described in 
Sec.  2411.13(a)(8), duplication fees).
    (ii) If the Authority, the General Counsel, the Panel, or the IG 
determines that unusual circumstances apply and more than 5,000 pages 
are necessary to respond to the request, the Authority, the General 
Counsel, the Panel, or the IG may charge search fees or, in the case of 
requesters defined in Sec.  2411.13(a)(6) through (8), may charge 
duplication fees, if the following steps are taken. The Authority, the 
General Counsel, the Panel, or the IG must have provided timely written 
notice of unusual circumstances to the requester in accordance with the 
FOIA and must have discussed with the requester via written mail, email, 
or telephone (or made not less than three good-faith attempts to do so) 
how the requester could effectively limit the scope of the request in 
accordance with 5 U.S.C. 552(a)(6)(B)(ii). If this exception is 
satisfied, the Authority, the General Counsel, the Panel, or the IG may 
charge all applicable fees incurred in the processing of the request.
    (iii) If a court has determined that exceptional circumstances 
exist, as defined by the FOIA, a failure to comply with the time limits 
shall be excused for the length of time provided by the court order.
    (d) If a request will take longer than 10 days to process:
    (1) An individualized tracking number will be assigned to the 
request and provided to the requester; and
    (2) Using the tracking number, the requester can find, by calling 
202-218-7999 or visiting https://foiaonline.regulations.gov, status 
information about the request including:
    (i) The date on which the agency originally received the request; 
and
    (ii) An estimated date on which the agency will complete action on 
the request.

[[Page 389]]

    (e) If any request for records is denied in whole or in part, the 
response required by paragraph (c) of this section shall notify the 
requester of the denial. Such denial shall specify the reason therefore, 
set forth the name and title or position of the person responsible for 
the denial, and notify the person making the request of the right to 
appeal the denial under the provisions of Sec.  2411.10. Such denial 
shall also notify the requester of the assistance available from the 
FLRA's FOIA Public Liaison and the dispute resolution services offered 
by the Office of Government Information Services of the National 
Archives and Records Administration (OGIS).

[74 FR 50674, Oct. 1, 2009, as amended at 82 FR 2852, Jan. 10, 2017]



Sec.  2411.9  Business information.

    (a) In general. Business information obtained by the FLRA from a 
submitter will be disclosed under the FOIA only under this section.
    (b) Definitions. For purposes of this section:
    (1) Business information means commercial or financial information 
obtained by the FLRA from a submitter that may be protected from 
disclosure under Exemption 4 of the FOIA.
    (2) Submitter means any person or entity from whom the FLRA obtains 
business information, directly or indirectly. The term includes 
corporations; state, local, and tribal governments; and foreign 
governments.
    (c) Designation of business information. A submitter of business 
information will use good-faith efforts to designate, by appropriate 
markings, either at the time of submission or at a reasonable time 
thereafter, any portions of its submission that it considers to be 
protected from disclosure under Exemption 4. These designations will 
expire ten years after the date of the submission unless the submitter 
requests, and provides justification for, a longer designation period.
    (d) Notice to submitters. The FLRA shall provide a submitter with 
prompt written notice of a FOIA request or administrative appeal that 
seeks its business information wherever required under paragraph (e) of 
this section, except as provided in paragraph (h) of this section, in 
order to give the submitter an opportunity to object to disclosure of 
any specified portion of that information under paragraph (f) of this 
section. The notice shall either describe the business information 
requested or include copies of the requested records or record portions 
containing the information. When notification of a voluminous number of 
submitters is required, notification may be made by posting or 
publishing the notice in a place reasonably likely to accomplish it.
    (e) Where notice is required. Notice shall be given to a submitter 
wherever:
    (1) The information has been designated in good faith by the 
submitter as information considered protected from disclosure under 
Exemption 4; or
    (2) The FLRA has reason to believe that the information may be 
protected from disclosure under Exemption 4.
    (f) Opportunity to object to disclosure. The FLRA will allow a 
submitter a reasonable time to respond to the notice described in 
paragraph (d) of this section and will specify that time period within 
the notice. If a submitter has any objection to disclosure, it is 
required to submit a detailed written statement. The statement must 
specify all grounds for withholding any portion of the information under 
any exemption of the FOIA and, in the case of Exemption 4, it must show 
why the information is a trade secret or commercial or financial 
information that is privileged or confidential. In the event that a 
submitter fails to respond to the notice within the time specified in 
it, the submitter will be considered to have no objection to disclosure 
of the information. Information provided by the submitter that is not 
received by the FLRA until after it has made its disclosure decision 
shall not be considered by the FLRA. Information provided by a submitter 
under this paragraph may itself be subject to disclosure under the FOIA.
    (g) Notice of intent to disclose. The FLRA shall consider a 
submitter's objections and specific grounds for nondisclosure in 
deciding whether to disclose business information. Whenever the FLRA 
decides to disclose business information over the objection of a 
submitter, the FLRA shall give the

[[Page 390]]

submitter written notice, which shall include:
    (1) A statement of the reason(s) why each of the submitter's 
disclosure objections were not sustained;
    (2) A description of the business information to be disclosed; and
    (3) A specified disclosure date, which shall be a reasonable time 
subsequent to the notice.
    (h) Exceptions to notice requirements. The notice requirements of 
paragraphs (d) and (g) of this section shall not apply if:
    (1) The FLRA determines that the information should not be 
disclosed;
    (2) The information lawfully has been published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by statute (other than 
the FOIA) or by a regulation issued in accordance with the requirements 
of Executive Order 12600, (52 FR 23781, 3 CFR, 1987 Comp. p. 235); or
    (4) The designation made by the submitter under paragraph (c) of 
this section appears to be obviously frivolous--except that, in such a 
case, the FLRA shall, within a reasonable time prior to a specified 
disclosure date, give the submitter written notice of any final decision 
to disclose the information.
    (i) Notice of FOIA lawsuit. Whenever a requester files a lawsuit 
seeking to compel the disclosure of business information, the FLRA shall 
promptly notify the submitter.
    (j) Corresponding notice to requesters. Whenever the FLRA provides a 
submitter with notice and an opportunity to object to disclosure under 
paragraph (d) of this section, the FLRA shall also notify the 
requester(s). Whenever the FLRA notifies a submitter of its intent to 
disclose requested information under paragraph (g) of this section, the 
FLRA shall also notify the requester(s). Whenever a submitter files a 
lawsuit seeking to prevent the disclosure of business information, the 
FLRA shall notify the requester(s).

[74 FR 50674, Oct. 1, 2009, as amended at 82 FR 2853, Jan. 10, 2017]



Sec.  2411.10  Appeal from denial of request.

    (a)(1) When a request for records is denied, in whole or in part, a 
requester may appeal the denial by submitting a written appeal by mail 
or online that is postmarked, or in the case of an electronic 
submission, transmitted, within 90 calendar days after the requester 
receives notification that the request has been denied or after the 
requester receives any records being made available, in the event of 
partial denial. The appeal should clearly identify the agency 
determination that is being appealed and the assigned request number.
    (i) If the denial was made by the Solicitor or the IG, the appeal 
shall be filed with the Chairman of the Authority in Washington, DC.
    (ii) If the denial was made by a Regional Director or by the FOIA 
Officer of the General Counsel, the appeal shall be filed with the 
General Counsel in Washington, DC.
    (iii) If the denial was made by the Executive Director of the Panel, 
the appeal shall be filed with the Chairman of the Panel.
    (2) The Chairman of the Authority, the General Counsel, or the 
Chairman of the Panel, as appropriate, shall, within 20 working days 
(excepting Saturdays, Sundays, and legal public holidays) from the time 
of receipt of the appeal, except as provided in Sec.  2411.11, make a 
determination on the appeal and respond in writing to the requester, 
determining whether, or the extent to which, the request shall be 
granted. An appeal ordinarily will not be adjudicated if the request 
becomes a matter of FOIA litigation.
    (i) If the determination is to grant the request and the request is 
expected to involve an assessed fee in excess of $250.00, the 
determination shall specify or estimate the fee involved, and it shall 
require prepayment of any charges due in accordance with the provisions 
of Sec.  2411.13(a) before the records are made available.
    (ii) Whenever possible, the determination relating to a request for 
records that involves a fee of less than $250.00 shall be accompanied by 
the requested records when there is no history of the requester having 
previously

[[Page 391]]

failed to pay fees in a timely manner. Where this is not possible, the 
records shall be forwarded as soon as possible thereafter, consistent 
with other obligations of the Authority, the General Counsel, the Panel, 
or the IG.
    (b) If, on appeal, the denial of the request for records is upheld 
in whole or in part by the Chairman of the Authority, the General 
Counsel, or the Chairman of the Panel, as appropriate, the person making 
the request shall be notified of the reasons for the determination, the 
name and title or position of the person responsible for the denial, and 
the provisions for judicial review of that determination under 5 U.S.C. 
552(a)(4). The determination will also inform the requester of the 
mediation services offered by the OGIS as a non-exclusive alternative to 
litigation. Mediation is a voluntary process. If the FLRA agrees to 
participate in the mediation services provided by the OGIS, it will 
actively engage as a partner to the process in an attempt to resolve the 
dispute.
    (c) Even though no appeal is filed from a denial in whole or in part 
of a request for records by the person making the request, the Chairman 
of the Authority, the General Counsel, or the Chairman of the Panel, as 
appropriate, may, without regard to the time limit for filing of an 
appeal, sua sponte initiate consideration of a denial under this appeal 
procedure by written notification to the person making the request. In 
such event, the time limit for making the determination shall commence 
with the issuance of such notification.
    (d) Before seeking judicial review of the FLRA's denial of a 
request, a requester generally must first submit a timely administrative 
appeal.

[82 FR 2854, Jan. 10, 2017]



Sec.  2411.11  Modification of time limits.

    (a) In unusual circumstances, as specified in this section, the time 
limits prescribed with respect to initial determinations or 
determinations on appeal may be extended by written notice from the 
agency component handling the request (either initial or on appeal) to 
the person making such request setting forth the reasons for such 
extension and the date on which a determination is expected to be 
dispatched. As appropriate, the notice shall provide the requester with 
an opportunity to limit the scope of the request so that it may be 
processed within the time limit or an opportunity to arrange with the 
processing agency component an alternative time frame for processing the 
request or a modified request. No such notice shall specify a date that 
would result in a total extension of more than 10 working days. To aid 
the requester, the FOIA Public Liaison shall assist in the resolution of 
any disputes between the requester and the processing agency component, 
and shall notify the requester of the requester's right to seek dispute 
resolution services from the OGIS.
    (b) As used in this section, ``unusual circumstances'' means, but 
only to the extent reasonably necessary to the proper processing of the 
particular request:
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
processing agency component;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records that are demanded in 
a single request; or
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request or among two or more components of the 
agency having substantial subject matter interest therein.
    (c) Expedited processing of a request for records, or an appeal of a 
denial of a request for expedited processing, shall be provided when the 
requester demonstrates a compelling need for the information and in 
other cases as determined by the officer processing the request. A 
requester seeking expedited processing can demonstrate a compelling need 
by submitting a statement certified by the requester to be true and 
correct to the best of such person's knowledge and belief and that 
satisfies the statutory and regulatory definitions of compelling need. 
Requesters shall be notified within 10 calendar days after receipt of 
such a request

[[Page 392]]

whether expedited processing, or an appeal of a denial of a request for 
expedited processing, was granted. As used in this section, ``compelling 
need'' means:
    (1) That a failure to obtain requested records on an expedited basis 
could reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual; or
    (2) With respect to a request made by a person primarily engaged in 
disseminating information, urgency to inform the public concerning 
actual or alleged Federal Government activity.

[82 FR 2854, Jan. 10, 2017]



Sec.  2411.12  Effect of failure to meet time limits.

    Failure by the Authority, the General Counsel, the Panel, or the IG 
either to deny or grant any request under this part within the time 
limits prescribed by the FOIA, as amended and these regulations shall be 
deemed to be an exhaustion of the administrative remedies available to 
the person making this request.

[82 FR 2855, Jan. 10, 2017]



Sec.  2411.13  Fees.

    (a) Definitions. For the purpose of this section:
    (1) The term direct costs means those expenditures that the 
Authority, the General Counsel, the Panel, or the IG actually incurs in 
searching for and duplicating (and in the case of commercial requesters, 
reviewing) documents to respond to a FOIA request. Direct costs include, 
for example, the salary of the employee performing work (the basic rate 
of pay for the employee plus 16 percent of the rate to cover benefits) 
and the cost of operating duplication machinery. Not included in direct 
costs are overhead expenses such as costs of space, and heating or 
lighting the facility in which the records are stored.
    (2) The term search includes all time spent looking for material 
that is responsive to a request, including page-by-page or line-by-line 
identification of material within documents as well as all reasonable 
efforts to locate and retrieve information from records maintained in 
electronic form or format. Searches may be done manually or by computer 
using existing programming. The Authority, the General Counsel, the 
Panel or the IG shall ensure that searches are done in the most 
efficient and least expensive manner reasonably possible. For example, 
if duplicating an entire document would be quicker and less expensive, a 
line-by-line search should not be done.
    (3) The term duplication refers to the process of making a copy of a 
document necessary to respond to a FOIA request. Such copies can take 
the form of paper copy, audio-visual materials, or machine-readable 
documentation, among others.
    (4) The term review refers to the process of examining documents 
located in response to a commercial-use request (see paragraph (a)(5) of 
this section) to determine whether any portion of any document located 
is permitted to be withheld. It also includes processing any documents 
for disclosure, e.g., doing all that is necessary to prepare them for 
release. Review does not include time spent resolving general legal or 
policy issues regarding the application of exemptions.
    (5) The term commercial-use request refers to a request from or on 
behalf of one who seeks information for a use or purpose that furthers 
the commercial, trade, or profit interests of the requester or the 
person on whose behalf the request is made. In determining whether a 
requester properly belongs in this category, the Authority, the General 
Counsel, the Panel, or the IG will look first to the use to which a 
requester will put the document requested. Where the Authority, the 
General Counsel, the Panel, or the IG has reasonable cause to doubt the 
use to which a requester will put the records sought, or where that use 
is not clear from the request itself, the Authority, the General 
Counsel, the Panel, or the IG may seek additional clarification before 
assigning the request to a specific category.
    (6) The term educational institution refers to a preschool, a public 
or private elementary or secondary school, an institution of 
undergraduate higher education, an institution of graduate higher 
education, an institution of professional education, or an institution 
of vocational education that operates a

[[Page 393]]

program or programs of scholarly research.
    (7) The term non-commercial scientific institution refers to an 
institution that is not operated on a commercial basis as that term is 
referenced in paragraph (a)(5) of this section, and that is operated 
solely for the purpose of conducting scientific research, the results of 
which are not intended to promote any particular product or industry.
    (8) The term representative of the news media refers to any person 
or entity that gathers information of potential interest to a segment of 
the public, uses its editorial skills to turn the raw materials into a 
distinct work, and distributes that work to an audience. The term news 
means information that is about current events or that would be of 
current interest to the public. Examples of news-media entities include 
television or radio stations broadcasting to the public at large and 
publishers of periodicals that disseminate ``news'' and make their 
products available through a variety of means to the general public 
including news organizations that disseminate solely on the Internet. 
These examples are not intended to be all-inclusive. Moreover, as 
methods of news delivery evolve, such alternative media shall be 
considered to be news-media entities. A freelance journalist shall be 
regarded as working for a news-media entity if the journalist can 
demonstrate a solid basis for expecting publication through that entity, 
whether or not the journalist is actually employed by the entity. A 
publication contract would present a solid basis for such an 
expectation; the FLRA may also consider the past publication record of 
the requester in making such a determination.
    (b) Exceptions to fee charges. (1) With the exception of requesters 
seeking documents for a commercial use, the Authority, the General 
Counsel, the Panel, or the IG will provide the first 100 pages of 
duplication and the first two hours of search time without charge. The 
word pages in this paragraph refers to paper copies of standard size, 
usually 8\1/2\ by 11. The term search time in this paragraph is based on 
a manual search for records. In applying this term to searches made by 
computer, when the cost of the search as set forth in paragraph (d)(2) 
of this section equals the equivalent dollar amount of two hours of the 
salary of the person performing the search, the Authority, the General 
Counsel, the Panel, or the IG will begin assessing charges for the 
computer search. No search or review fees will be charged for a quarter-
hour period unless more than half of that period is required for search 
or review.
    (2) The Authority, the General Counsel, the Panel, or the IG will 
not charge fees to any requester, including commercial-use requesters, 
if the cost of collecting the fee would be equal to or greater than the 
fee itself.
    (3) As provided in Sec.  2411.8(c)(5), the Authority, the General 
Counsel, the Panel, or the IG will not charge search fees (or 
duplication fees if the requester is an educational or noncommercial 
scientific institution, whose purpose is scholarly or scientific 
research; or a representative of the news media, as described in this 
section), when the time limits are not met.
    (4)(i) The Authority, the General Counsel, the Panel, or the IG will 
provide documents without charge or at reduced charges if disclosure of 
the information is in the public interest because it is likely to 
contribute significantly to public understanding of the operations or 
activities of the government; and is not primarily in the commercial 
interest of the requester.
    (ii) In determining whether disclosure is in the ``public interest 
because it is likely to contribute significantly to public understanding 
of the operations or activities of the government'' under paragraph 
(b)(4)(i) of this section, the Authority, the General Counsel, the 
Panel, and the IG will consider the following factors:
    (A) The subject of the request. The subject of the requested records 
must concern identifiable operations or activities of the Federal 
government, with a connection that is direct and clear, not remote or 
attenuated;
    (B) The informative value of the information to be disclosed. The 
disclosable portions of the requested records must be meaningfully 
informative about government operations or activities in order to be 
``likely to contribute'' to an

[[Page 394]]

increased public understanding of those operations or activities. The 
disclosure of information that already is in the public domain, in 
either a duplicative or a substantially identical form, would not be as 
likely to contribute to such understanding where nothing new would be 
added to the public's understanding;
    (C) The contribution to an understanding of the subject by the 
general public likely to result from disclosure. The disclosure must 
contribute to the understanding of a reasonably broad audience of 
persons interested in the subject, as opposed to the individual 
understanding of the requester. A requester's expertise in the subject 
area and his or her ability and intention to effectively convey 
information to the public shall be considered. It shall be presumed that 
a representative of the news media will satisfy this consideration; and
    (D) The significance of the contribution to the public 
understanding. The public's understanding of the subject in question, as 
compared to the level of public understanding existing prior to the 
disclosure, must be enhanced by the disclosure to a significant extent. 
The Authority, the General Counsel, the Panel, and the IG shall not make 
value judgments about whether information that would contribute 
significantly to public understanding of the operations or activities of 
the government is ``important'' enough to be made public.
    (iii) In determining whether disclosure ``is not primarily in the 
commercial interest of the requester'' under paragraph (b)(4)(i) of this 
section, the Authority, the General Counsel, the Panel, and the IG will 
consider the following factors:
    (A) The existence and magnitude of a commercial interest. The 
processing agency component will identify any commercial interest of the 
requester (with reference to the definition of ``commercial use'' in 
paragraph (a)(5) of this section), or of any person on whose behalf the 
requester may be acting, that would be furthered by the requested 
disclosure. Requesters shall be given an opportunity in the 
administrative process to provide explanatory information regarding this 
consideration; and,
    (B) The primary interest in disclosure. A fee waiver or reduction is 
justified where the public interest standard is satisfied and that 
public interest is greater in magnitude than that of any identified 
commercial interest in disclosure. The Authority, the General Counsel, 
the Panel, and the IG ordinarily shall presume that where a news media 
requester has satisfied the public interest standard, the public 
interest will be the interest primarily served by disclosure to that 
requester. Disclosure to data brokers or others who merely compile and 
market government information for direct economic return shall not be 
presumed to primarily serve the public interest.
    (iv) A request for a fee waiver based on the public interest under 
paragraph (b)(4)(i) of this section must address these factors as they 
apply to the request for records in order to be considered by the 
Authority, the General Counsel, the Panel, or the IG.
    (v) Requests for a waiver or reduction of fees should be made when 
the request is first submitted to the Authority, the General Counsel, 
the Panel, or the IG. A requester may submit a fee-waiver request at a 
later time so long as the underlying record request is pending or on 
administrative appeal. When a requester who has committed to pay fees 
subsequently asks for a waiver of those fees, and that waiver is denied, 
the requester must pay any costs incurred up to the date on which the 
fee-waiver request was received.
    (vi) When only some of the records to be released satisfy the 
requirements for a waiver of fees, a waiver shall be granted for those 
records.
    (c) Level of fees to be charged. The level of fees to be charged by 
the Authority, the General Counsel, the Panel, or the IG, in accordance 
with the schedule set forth in paragraph (d) of this section, depends on 
the category of the requester. The fee levels to be charged are as 
follows:
    (1) A request for documents appearing to be for commercial use will 
be charged to recover the full direct costs of searching for, reviewing 
for release, and duplicating the records sought.
    (2) A request for documents from an educational or non-commercial 
scientific institution will be charged for

[[Page 395]]

the cost of duplication alone, excluding charges for the first 100 
pages. To be eligible for inclusion in this category, requesters must 
show that the request is being made under the auspices of a qualifying 
institution and that the records are not sought for a commercial use, 
but are sought in furtherance of scholarly (if the request is from an 
educational institution) or scientific (if the request is from a non-
commercial scientific institution) research.
    (3) The Authority, the General Counsel, the Panel, or the IG shall 
provide documents to requesters who are representatives of the news 
media for the cost of duplication alone, excluding charges for the first 
100 pages.
    (4) The Authority, the General Counsel, the Panel, or the IG shall 
charge requesters who do not fit into any of the categories of this 
section fees that recover the full direct cost of searching for and 
duplicating records that are responsive to the request, except that the 
first 100 pages of duplication and the first two hours of search time 
shall be furnished without charge. Requests from record subjects for 
records about themselves filed in Authority, General Counsel, Panel, or 
IG systems of records will continue to be treated under the fee 
provisions of the Privacy Act of 1974, which permits fees only for 
duplication.
    (d) The following fees shall be charged in accordance with paragraph 
(c) of this section:
    (1) Manual searches for records. The salary rate (i.e., basic pay 
plus 16 percent) of the employee(s) making the search. Search time under 
this paragraph and paragraph (d)(2) of this section may be charged for 
even if the Authority, the General Counsel, the Panel or the IG fails to 
locate records or if records located are determined to be exempt from 
disclosure.
    (2) Computer searches for records. The actual direct cost of 
providing the service, including the cost of operating computers and 
other electronic equipment, and the salary (i.e., basic pay plus 16 
percent of that rate to cover benefits) of the employee conducting the 
search.
    (3) Review of records. The salary rate (i.e., basic pay plus 16 
percent of that rate to cover benefits) of the employee(s) conducting 
the review. This charge applies only to requesters who are seeking 
documents for commercial use, and only to the review necessary at the 
initial administrative level to determine the applicability of any 
relevant FOIA exemptions, and not at the administrative-appeal level of 
an exemption already applied.
    (4) Duplication of records. Twenty-five cents per page for paper-
copy duplication of documents, which the Authority, the General Counsel, 
the Panel, and the IG have determined is the reasonable direct cost of 
making such copies, taking into account the average salary of the 
operator and the cost of the duplication machinery. For copies of 
records produced on tapes, disks, or other media, the Authority, the 
General Counsel, the Panel, or the IG shall charge the actual cost of 
production, including operator time. When paper documents must be 
scanned in order to comply with a requester's preference to receive the 
records in an electronic format, the requester shall pay the direct 
costs associated with scanning those materials, including operator time. 
For all other forms of duplication, the Authority, the General Counsel, 
the Panel, and the IG will charge the direct costs, including operator 
time.
    (5) Forwarding material to destination. Postage, insurance, and 
special fees will be charged on an actual-cost basis.
    (e) Aggregating requests. When the Authority, the General Counsel, 
the Panel, or the IG reasonably believes that a requester or group of 
requesters is attempting to break a request down into a series of 
requests for the purpose of evading the assessment of fees, the 
Authority, the General Counsel, the Panel, or the IG will aggregate any 
such requests and charge accordingly.
    (f) Charging interest. Interest at the rate prescribed in 31 U.S.C. 
3717 may be charged to those requesters who fail to pay fees charged, 
beginning on the 31st day following the billing date. Receipt of a fee 
by the Authority, the General Counsel, the Panel, or the IG, whether 
processed or not, will stay the accrual of interest.
    (g) Advance payments. The Authority, the General Counsel, the Panel, 
or the IG will not require a requester to make

[[Page 396]]

an advance payment, i.e., payment before work is commenced or continued 
on a request, unless:
    (1) The Authority, the General Counsel, the Panel, or the IG 
estimates or determines that allowable charges that a requester may be 
required to pay are likely to exceed $250. In those circumstances, the 
Authority, the General Counsel, the Panel, or the IG will notify the 
requester of the likely cost and obtain satisfactory assurance of full 
payment, where the requester has a history of prompt payment of FOIA 
fees, or require an advance payment of an amount up to the full 
estimated charges in the case of requesters with no history of payment; 
or
    (2) A requester has previously failed to pay a fee charged in a 
timely fashion (i.e., within 30 days of the date of the billing), in 
which case the Authority, the General Counsel, the Panel, or the IG 
requires the requester to pay the full amount owed plus any applicable 
interest, as provided in this section, or demonstrate that the requester 
has, in fact, paid the fee, and to make an advance payment of the full 
amount of the estimated fee before the agency begins to process a new 
request or a pending request from that requester. When the Authority, 
the General Counsel, the Panel, or the IG has a reasonable basis to 
believe that a requester has misrepresented his or her identity in order 
to avoid paying outstanding fees, it may require that the requester 
provide proof of identity. When the Authority, the General Counsel, the 
Panel, or the IG acts under paragraph (g)(1) or (2) of this section, the 
administrative time limits prescribed in subsection (a)(6) of the FOIA 
(i.e., 20 working days from receipt of initial requests and 20 working 
days from receipt of appeals from initial denial, plus permissible 
extension of these time limits) will begin only after the Authority, the 
General Counsel, the Panel, or the IG has received fee payments 
described in this section. If the requester does not pay the advance 
payment within 30 calendar days after the date of the fee determination, 
the request will be closed.
    (h) When a person other than a party to a proceeding before the FLRA 
makes a request for a copy of a transcript or recording of the 
proceeding, the Authority, the General Counsel, the Panel, or the IG, as 
appropriate, will handle the request under this part.
    (i) Payment of fees shall be made by check or money order payable to 
the U.S. Treasury.
    (j) The fee schedule of this section does not apply to fees charged 
under any statute that specifically requires the Authority, the General 
Counsel, the Panel, or the IG to set and collect fees for particular 
types of records. In instances in which records responsive to a request 
are subject to a statutorily based fee-schedule program, the Authority, 
the General Counsel, the Panel, or the IG will inform the requester of 
the contact information for that program.

[74 FR 50674, Oct. 1, 2009, as amended at 82 FR 2855, Jan. 10, 2017]



Sec.  2411.14  Record retention and preservation.

    The Authority, the General Counsel, the Panel, and the IG shall 
preserve all correspondence pertaining to the requests that it receives 
under this subpart, as well as copies of all requested records, until 
such time as disposition or destruction is authorized by title 44 of the 
United States Code or the National Archives and Records Administration's 
General Records Schedule 14. Records will not be disposed of while they 
are the subject of a pending request, appeal, or lawsuit under the FOIA.

[82 FR 2857, Jan. 10, 2017]



Sec.  2411.15  Annual report.

    Each year, on or around February 1, as requested by the Department 
of Justice's Office of Information Policy, the Chief FOIA Officer of the 
FLRA shall submit a report of the activities of the Authority, the 
General Counsel, the Panel, and the IG with regard to public information 
requests during the preceding fiscal year to the Attorney General of the 
United States and the Director of the OGIS. The report shall include 
those matters required by 5 U.S.C. 552(e), and it shall be made 
available electronically. The Chief FOIA Officer of the FLRA shall make 
each such report available for public

[[Page 397]]

inspection in an electronic format. In addition, the Chief FOIA Officer 
of the FLRA shall make the raw statistical data used in each report 
available in a timely manner for public inspection in an electronic 
format, which shall be available--
    (a) Without charge, license, or registration requirement;
    (b) In an aggregated, searchable format; and
    (c) In a format that may be downloaded in bulk.

[82 FR 2857, Jan. 10, 2017]



PART 2412_PRIVACY--Table of Contents



Sec.
2412.1 Purpose and scope.
2412.2 Definitions.
2412.3 Notice and publication.
2412.4 Existence of records requests.
2412.5 Individual access requests.
2412.6 Initial decision on access requests.
2412.7 Special procedures; medical records.
2412.8 Limitations on disclosures.
2412.9 Accounting of disclosures.
2412.10 Requests for correction or amendment of records.
2412.11 Initial decision on correction or amendment.
2412.12 Amendment or correction of previously disclosed records.
2412.13 Agency review of refusal to provide access to, or amendment or 
          correction of, records.
2412.14 Fees.
2412.15 Penalties.
2412.16 Exemptions.

    Authority: 5 U.S.C. 552a.

    Source: 45 FR 3491, Jan. 17, 1980, unless otherwise noted.



Sec.  2412.1  Purpose and scope.

    This part contains the regulations of the Federal Labor Relations 
Authority, the General Counsel of the Federal Labor Relations Authority 
and the Federal Service Impasses Panel implementing the Privacy Act of 
1974, as amended, 5 U.S.C. 552a. The regulations apply to all records 
maintained by the Authority, the General Counsel and the Panel that are 
contained in a system of records, as defined herein, and that contain 
information about an individual. The regulations in this part set forth 
procedures that: (a) Authorize an individual's access to records 
maintained about the individual; (b) limit the access of other persons 
to those records; and (c) permit an individual to request the amendment 
or correction of records about the individual.



Sec.  2412.2  Definitions.

    For the purposes of this part--
    (a) Individual means a citizen of the United States or an alien 
lawfully admitted for permanent residence.
    (b) Maintain includes maintain, collect, use or disseminate.
    (c) Record means any item, collection or grouping of information 
about an individual that is maintained by the Authority, the General 
Counsel and the Panel including, but not limited to, the individual's 
education, financial transactions, medical history and criminal or 
employment history and that contains the individual's name, or the 
identifying number, symbol or other identifying particular assigned to 
the individual, such as a finger or voice print or a photograph.
    (d) System of records means a group of any records under the control 
of the Authority, the General Counsel and the Panel from which 
information is retrieved by the name of the individual or by some 
identifying particular assigned to the individual.
    (e) Routine use means, with respect to the disclosure of a record, 
the use of such record for a purpose which is compatible with the 
purpose for which it was collected.



Sec.  2412.3  Notice and publication.

    The Authority, the General Counsel, and the Panel will publish in 
the Federal Register such notices describing systems of records as are 
required by law.

[51 FR 33837, Sept. 23, 1986]



Sec.  2412.4  Existence of records requests.

    (a) An individual who desires to know if a system of records 
maintained by the Authority, the General Counsel and the Panel contains 
a record pertaining to the individual must submit a written inquiry as 
follows:
    (1) If the system of records is located in a regional office of the 
Authority, it should be made to the appropriate Regional Director; and

[[Page 398]]

    (2) If the system of records is located in the office of the 
Authority, the General Counsel or the Panel in Washington, DC, it should 
be made to the Director of Administration of the Authority, Washington, 
DC.
    (b) The request shall be in writing and should be clearly and 
prominently identified as a Privacy Act request. If the request is 
submitted by mail or otherwise submitted in an envelope or other cover, 
it should bear the legend ``Privacy Act Request'' on the envelope or 
other cover. If a request does not comply with the provisions of this 
paragraph, it shall not be deemed received until the time it is actually 
received by the appropriate Regional Director or the Director of 
Administration of the Authority, as appropriate.
    (c) The inquiry must include the name and address of the individual 
and reasonably describe the system of records in question by the 
individual. Descriptions of the systems of records maintained by the 
Authority, the General Counsel and the Panel have been published in the 
Federal Register.
    (d) The appropriate Regional Director or the Director of 
Administration of the Authority, as appropriate, will advise the 
individual in writing within ten (10) working days from receipt of the 
request whether the system of records named by the individual contains a 
record pertaining to the individual.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.5  Individual access requests.

    (a) Any individual who desires to inspect or receive copies of any 
record pertaining to the individual which is contained in a system of 
records maintained by the Authority, the General Counsel and the Panel 
must submit a written request reasonably identifying the records sought 
to be inspected or copied as follows:
    (1) If the system of records is located in a regional office of the 
Authority, it should be made to the appropriate Regional Director; and
    (2) If the system of records is located in the offices of the 
Authority, the General Counsel or the Panel in Washington, DC, it should 
be made to the Deputy Director of Administration of the Authority, 
Washington, DC.
    (b) The request shall be in writing and should be clearly and 
prominently identified as a Privacy Act request. If the request is 
submitted by mail or otherwise submitted in an envelope or other cover, 
it should bear the legend ``Privacy Act Request'' on the envelope or 
other cover. If a request does not comply with the provisions of this 
paragraph, it shall not be deemed received until the time it is actually 
received by the appropriate Regional Director or the Director of 
Administration of the Authority, as appropriate.
    (c) An individual seeking access to a record may, if desired, be 
accompanied by another person during review of the records. If the 
requester does desire to be accompanied by another person during the 
inspection, the requester must sign a statement, to be furnished to the 
Authority, the General Counsel or the Panel representative, as 
appropriate, at the time of the inspection, authorizing such other 
person to accompany the requester.
    (d) Satisfactory identification (i.e., employee identification 
number, current address, and verification of signature) must be provided 
to the Authority, the General Counsel or the Panel representative, as 
appropriate, prior to review of the record.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.6  Initial decision on access requests.

    (a) Within ten (10) working days of the receipt of a request 
pursuant to Sec.  2412.5, the appropriate Regional Director or the 
Director of Administration of the Authority, as appropriate, shall make 
an initial decision whether the requested records exist and whether they 
will be made available to the person requesting them. That initial 
decision shall immediately be communicated, in writing or other 
appropriate form, to the person who has made the request.
    (b) Where the initial decision is to provide access to the requested 
records, the above writing or other appropriate communication shall:
    (1) Briefly describe the records to be made available;

[[Page 399]]

    (2) State whether any records maintained, in the system of records 
in question, about the individual making the request are not being made 
available;
    (3) State that the requested records will be available during 
ordinary office hours at the appropriate regional office or offices of 
the Authority, the General Counsel or the Panel, as appropriate; and
    (4) State whether any further verification of the identity of the 
requesting individual is necessary.
    (c) Where the initial decision is not to provide access to requested 
records, the appropriate Regional Director or the Director of 
Administration of the Authority, as appropriate, shall by writing or 
other appropriate communication explain the reason for that decision. 
The appropriate Regional Director or the Director of Administration of 
the Authority, as appropriate, shall only refuse to provide an 
individual access where:
    (1) There is inadequate verification of identity under Sec.  
2412.5(d);
    (2) In fact no such records are maintained; or
    (3) The requested records have been compiled in a reasonable 
anticipation of civil or criminal action or proceedings.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.7  Special procedures; medical records.

    (a) If medical records are requested for inspection which, in the 
opinion of the appropriate Regional Director or the Director of 
Administration of the Authority, as appropriate, may be harmful to the 
requester if personally inspected by such person, such records will be 
furnished only to a licensed physician designated to receive such 
records by the requester. Prior to such disclosure, the requester must 
furnish a signed written authorization to make such disclosure and the 
physician must furnish a written request for the physician's receipt of 
such records to the appropriate Regional Director or the Director of 
Administration of the Authority, as appropriate.
    (b) If such authorization is not executed within the presence of an 
Authority, General Counsel or Panel representative, the authorization 
must be accompanied by a notarized statement verifying the 
identification of the requester.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.8  Limitations on disclosures.

    (a) Requests for records about an individual made by person other 
than that individual shall also be directed as follows:
    (1) If the system of records is located in a regional office of the 
Authority, it should be made to the appropriate Regional Director; and
    (2) If the system of records is located in the offices of the 
Authority, the General Counsel or the Panel in Washington, DC, it should 
be made to the Director of Administration of the Authority, Washington, 
DC.
    (b) Such records shall only be made available to persons other than 
that individual in the following circumstances:
    (1) To any person with the prior written consent of the individual 
about whom the records are maintained;
    (2) To officers and employees of the Authority, the General Counsel 
and the Panel who need the records in the performance of their official 
duties;
    (3) For a routine use compatible with the purpose for which it was 
collected;
    (4) To any person to whom disclosure is required by the Freedom of 
Information Act, as amended, 5 U.S.C. 552;
    (5) To the Bureau of the Census for uses pursuant to title 13 of the 
United States Code;
    (6) In a form not individually identifiable to a recipient who has 
provided the Authority, the General Counsel and the Panel with adequate 
assurance that the record will be used solely as a statistical research 
or reporting record;
    (7) To the National Archives of the United States or other 
appropriate entity as a record which has historical or other value 
warranting its preservation;
    (8) To another agency or to an instrumentality of any governmental 
jurisdiction within or under control of the United States for a civil or 
criminal

[[Page 400]]

law enforcement activity that is authorized by law if the head of the 
agency or instrumentality has made a written request for the record to 
the Authority, the General Counsel or the Panel;
    (9) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of an individual, provided that 
notification of such a disclosure shall be immediately mailed to the 
last known address of the individual;
    (10) To either House of Congress or to any committee thereof with 
appropriate jurisdiction;
    (11) To the Comptroller General in the performance of the official 
duties of the General Accounting Office; or
    (12) Pursuant to the order of a court of competent jurisdiction.
    (c) The request shall be in writing and should be clearly and 
prominently identified as a Privacy Act request and, if submitted by 
mail or otherwise submitted in an envelope or other cover, should bear 
the legend ``Privacy Act Request'' on the envelope or other cover. If a 
request does not comply with the provisions of this paragraph, it shall 
not be deemed received until the time it is actually received by the 
appropriate Regional Director or the Director of Administration of the 
Authority, as appropriate.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.9  Accounting of disclosures.

    (a) All Regional Directors of the Authority and the Director of 
Administration of the Authority shall maintain a record (``accounting'') 
of every instance in which records about an individual are made 
available, pursuant to this part, to any person other than:
    (1) Officers or employees of the Authority, the General Counsel or 
the Panel in the performance of their duties; or
    (2) Any person pursuant to the Freedom of Information Act, as 
amended, 5 U.S.C. 552.
    (b) The accounting which shall be retained for at least five (5) 
years or the life of the record, whichever is longer, shall contain the 
following information:
    (1) A brief description of records disclosed;
    (2) The date, nature and, where known, the purpose of the 
disclosure; and
    (3) The name and address of the person or agency to whom the 
disclosure is made.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.10  Requests for correction or amendment of records.

    (a) After inspection of any records, if the individual disagrees 
with any information in the record, the individual may request that the 
records maintained about the individual be corrected or otherwise 
amended. Such request shall specify the particular portions of the 
record to be amended or corrected, the desired amendment or correction, 
and the reasons therefor.
    (b) Such request shall be in writing and directed as follows:
    (1) If the system of records is located in a regional office of the 
Authority, it should be made to the appropriate Regional Director; and
    (2) If the system of records is located in the offices of the 
Authority, the General Counsel or the Panel in Washington, DC, it should 
be made to the Deputy Director of Administration of the Authority, 
Washington, DC.



Sec.  2412.11  Initial decision on correction or amendment.

    (a) Within ten (10) working days from the date of receipt of a 
request for correction or amendment, the appropriate Regional Director 
or the Director of Administration of the Authority, as appropriate, will 
acknowledge receipt of the request and, under normal circumstances, not 
later than thirty (30) days from receipt of the request, will give the 
requesting individual notice, by mail or other appropriate means, of the 
decision regarding the request.
    (b) Such notice of decision shall include:
    (1) A statement whether the request has been granted or denied, in 
whole or in part;
    (2) A quotation or description of any amendment or correction made 
to any records; and

[[Page 401]]

    (3) Where a request is denied in whole or in part, an explanation of 
the reason for that denial and of the requesting individual's right to 
appeal the decision to the Chairman of the Authority pursuant to Sec.  
2412.13.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.12  Amendment or correction of previously disclosed records.

    Whenever a record is amended or corrected pursuant to Sec.  2412.11 
or a written statement filed pursuant to Sec.  2412.13, the appropriate 
Regional Director or the Director of Administration of the Authority, as 
appropriate, shall give notice of that correction, amendment or written 
statement to all persons to whom the records or copies thereof have been 
disclosed, as recorded in the accounting kept pursuant to Sec.  2412.9.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.13  Agency review of refusal to provide access to, 
or amendment or correction of, records.

    (a) Any individual whose request for access to, or amendment or 
correction of, records of the Authority, the General Counsel or the 
Panel has been denied in whole or in part by an initial decision may, 
within thirty (30) days of the receipt of notice of the initial 
decision, appeal that decision by filing a written request for review of 
that decision with the Chairman of the Authority in Washington, DC.
    (b) The appeal shall describe:
    (1) The request initially made by the individual for access to, or 
the amendment or correction of, records;
    (2) The initial decision thereupon of the appropriate Regional 
Director or the Director of Administration; and
    (3) The reasons why that initial decision should be modified by the 
Chairman of the Authority.
    (c) Not later than thirty (30) working days from receipt of a 
request for review (unless such period is extended by the Chairman of 
the Authority for good cause shown), the Chairman of the Authority shall 
make a decision, and give notice thereof to the appealing individual, 
whether to modify the initial decision of the Regional Director or the 
Deputy Director of Administration, in any way. If the Chairman of the 
Authority upholds the Regional Director's or Deputy Director of 
Administration's initial decision not to provide access to requested 
records or not to amend or correct the records as requested, the 
Chairman of the Authority shall notify the appealing individual of the 
individual's right:
    (1) To judicial review of the Chairman of the Authority's decision 
pursuant to 5 U.S.C. 552a(g)(1); and
    (2) To file with the Authority a written statement of disagreement 
setting forth the reasons why the record should have been amended or 
corrected as requested. That written statement of disagreement shall be 
made a part of the record and shall accompany that record in any use or 
disclosure of the record.

[45 FR 3491, Jan. 17, 1980, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2412.14  Fees.

    (a) As provided in this part, the Authority, the General Counsel or 
the Panel will provide a copy of the records to the individual to whom 
they pertain. There will be a charge of ten cents per copy of each page.
    (b) Any charges may be waived or reduced whenever it is in the 
public interest to do so.



Sec.  2412.15  Penalties.

    Any person who knowingly and willfully requests or obtains any 
record concerning an individual from the Authority, the General Counsel 
or the Panel under false pretenses shall be subject to criminal 
prosecution under 5 U.S.C. 552a(i)(3) which provides that such person 
shall be guilty of a misdemeanor and fined not more than $5,000.



Sec.  2412.16  Exemptions.

    (a) OIG files compiled for the purpose of a criminal investigation 
and for related purposes. Pursuant to 5 U.S.C. 552a(j)(2), the FLRA 
hereby exempts the system of records entitled ``FLRA/OIG-1, Office of 
Inspector General Investigative Files,'' insofar as it consists of 
information compiled for the purposes of a criminal investigation or for 
other purposes within the scope of 5 U.S.C. 552a(j)(2), from the 
application

[[Page 402]]

of 5 U.S.C. 552a, except for subsections (b), (c) (1) and (2), (e)(4) 
(A) through (F), (e) (6), (7), (9), (10), (11) and (i).
    (b) OIG files compiled for other law enforcement purposes. Pursuant 
to 5 U.S.C. 552a(k)(2), the FLRA hereby exempts the system of records 
entitled, ``FLRA/OIG-1, Office of Inspector General Investigative 
Files,'' insofar as it consists of information compiled for law 
enforcement purposes other than material within the scope of 5 U.S.C. 
552a(j)(2), from the application of 5 U.S.C. 552a (c)(3), (d), (e)(1), 
(e)(4) (G), (H), and (I), and (f).

[56 FR 33189, July 19, 1991]



PART 2413_OPEN MEETINGS--Table of Contents



Sec.
2413.1 Purpose and scope.
2413.2 Public observation of meetings.
2413.3 Definition of meeting.
2413.4 Closing of meetings; reasons therefor.
2413.5 Action necessary to close meeting; record of votes.
2413.6 Notice of meetings; public announcement and publication.
2413.7 Transcripts, recordings or minutes of closed meeting; public 
          availability; retention.

    Authority: 5 U.S.C. 552b.

    Source: 45 FR 3494, Jan. 17, 1980, unless otherwise noted.



Sec.  2413.1  Purpose and scope.

    This part contains the regulations of the Federal Labor Relations 
Authority implementing the Government in the Sunshine Act, 5 U.S.C. 
552b.



Sec.  2413.2  Public observation of meetings.

    Every portion of every meeting of the Authority shall be open to 
public observation, except as provided in Sec.  2413.4, and Authority 
members shall not jointly conduct or dispose of agency business other 
than in accordance with the provisions of this part.



Sec.  2413.3  Definition of meeting.

    For purposes of this part, meeting shall mean the deliberations of 
at least two (2) members of the Authority where such deliberations 
determine or result in the joint conduct or disposition of official 
agency business, but does not include deliberations to determine whether 
a meeting should be closed to public observation in accordance with the 
provisions of this part.



Sec.  2413.4  Closing of meetings; reasons therefor.

    (a) Except where the Authority determines that the public interest 
requires otherwise, meetings, or portions thereof, shall not be open to 
public observation where the deliberations concern the issuance of a 
subpena, the Authority's participation in a civil action or proceeding 
or an arbitration, or the initiation, conduct or disposition by the 
Authority of particular cases of formal agency adjudication pursuant to 
the procedures in 5 U.S.C. 554 or otherwise involving a determination on 
the record after opportunity for a hearing, or any court proceedings 
collateral or ancillary thereto.
    (b) Meetings, or portions thereof, may also be closed by the 
Authority, except where it determines that the public interest requires 
otherwise, when the deliberations concern matters or information falling 
within the reasons for closing meetings specified in 5 U.S.C. 552b(c)(1) 
(secret matters concerning national defense or foreign policy); (c)(2) 
(internal personnel rules and practices); (c)(3) (matters specifically 
exempted from disclosure by statute); (c)(4) (privileged or confidential 
trade secrets and commercial or financial information); (c)(5) (matters 
of alleged criminal conduct or formal censure); (c)(6) (personal 
information where disclosure would cause a clearly unwarranted invasion 
of personal privacy); (c)(7) (certain materials or information from 
investigatory files compiled for law enforcement purposes); or (c)(9)(B) 
(disclosure would significantly frustrate implementation of a proposed 
agency action).



Sec.  2413.5  Action necessary to close meeting; record of votes.

    A meeting shall be closed to public observation under Sec.  2413.4, 
only when a majority of the members of the Authority who will 
participate in the meeting vote to take such action.
    (a) When the meeting deliberations concern matters specified in 
Sec.  2413.4(a), the Authority members shall vote at

[[Page 403]]

the beginning of the meeting, or portion thereof, on whether to close 
such meeting, or portion thereof, to public observation and on whether 
the public interest requires that a meeting which may properly be closed 
should nevertheless be open to public observation. A record of such 
vote, reflecting the vote of each member of the Authority, shall be kept 
and made available to the public at the earliest practicable time.
    (b) When the meeting deliberations concern matters specified in 
Sec.  2413.4(b), the Authority shall vote on whether to close such 
meeting, or portion thereof, to public observation, and on whether there 
is a public interest which requires that a meeting which may properly be 
closed should nevertheless be open to public observation. The vote shall 
be taken at a time sufficient to permit inclusion of information 
concerning the open or closed status of the meeting in the public 
announcement thereof. A single vote may be taken with respect to a 
series of meetings at which the deliberations will concern the same 
particular matters where such subsequent meetings are scheduled to be 
held within thirty (30) days after the initial meeting. A record of such 
vote, reflecting the vote of each member of the Authority, shall be kept 
and made available for the public within one (1) day after the vote is 
taken.
    (c) Whenever any person whose interests may be directly affected by 
deliberations during a meeting, or a portion thereof, requests that the 
Authority close that meeting, or portion thereof, to public observation 
for any of the reasons specified in 5 U.S.C. 552b(c)(5) (matters of 
alleged criminal conduct or formal censure), (c)(6) (personal 
information where disclosure would cause a clearly unwarranted invasion 
of personal privacy), or (c)(7) (certain materials or information from 
investigatory files compiled for law enforcement purposes), the 
Authority members participating in the meeting, upon request of any one 
of its members, shall vote on whether to close such meeting, or a 
portion thereof, for that reason. A record of such vote, reflecting the 
vote of each member of the Authority participating in the meeting, shall 
be kept and made available to the public within one (1) day after the 
vote is taken.
    (d) After public announcement of a meeting as provided in Sec.  
2413.6, a meeting, or portion thereof, announced as closed may be 
opened, or a meeting, or portion thereof, announced as open may be 
closed only if a majority of the members of the Authority who will 
participate in the meeting determine by a recorded vote that Authority 
business so requires and that an earlier announcement of the change was 
not possible. The change made and the vote of each member on the change 
shall be announced publicly at the earliest practicable time.
    (e) Before a meeting may be closed pursuant to Sec.  2413.4, the 
Solicitor of the Authority shall certify that in the Solicitor's opinion 
the meeting may properly be closed to public observation. The 
certification shall set forth each applicable exemptive provision for 
such closing. Such certification shall be retained by the agency and 
made publicly available as soon as practicable.



Sec.  2413.6  Notice of meetings; public announcement and publication.

    (a) A public announcement setting forth the time, place and subject 
matter of meetings, or portions thereof, closed to public observation 
pursuant to the provisions of Sec.  2413.4(a), shall be made at the 
earliest practicable time.
    (b) Except for meetings closed to public observation pursuant to the 
provisions of Sec.  2413.4(a), the agency shall make public announcement 
of each meeting to be held at least seven (7) days before the scheduled 
date of the meeting. The announcement shall specify the time, place and 
subject matter of the meeting, whether it is to be open to public 
observation or closed, and the name, address, and phone number of an 
agency official designated to respond to requests for information about 
the meeting. The seven (7) day period for advance notice may be 
shortened only upon a determination by a majority of the members of the 
Authority who will participate in the meeting that agency business 
requires that such meeting be called at an earlier date, in which event 
the public announcements shall be made at the earliest practicable time. 
A record of the

[[Page 404]]

vote to schedule a meeting at an earlier date shall be kept and made 
available to the public.
    (c) Within one (1) day after a vote to close a meeting, or any 
portion thereof, pursuant to the provisions Sec.  2413.4(b), the agency 
shall make publicly available a full written explanation of its action 
closing the meeting, or portion thereof, together with a list of all 
persons expected to attend the meeting and their affiliation.
    (d) If after public announcement required by paragraph (b) of this 
section has been made, the time and place of the meeting are changed, a 
public announcement shall be made at the earliest practicable time. The 
subject matter of the meeting may be changed after the public 
announcement only if a majority of the members of the Authority who will 
participate in the meeting determine that agency business so requires 
and that no earlier announcement of the change was possible. When such a 
change in subject matter is approved, a public announcement of the 
change shall be made at the earliest practicable time. A record of the 
vote to change the subject matter of the meeting shall be kept and made 
available to the public.
    (e) All announcements or changes thereto issued pursuant to the 
provisions of paragraphs (b) and (d) of this section or pursuant to the 
provisions of Sec.  2413.5(d) shall be submitted for publication in the 
Federal Register immediately following their release to the public.
    (f) Announcements of meetings made pursuant to the provisions of 
this section shall be made publicly available by the Executive Director.



Sec.  2413.7  Transcripts, recordings or minutes of closed meeting; 
public availability; retention.

    (a) For every meeting, or portion thereof, closed under the 
provisions of Sec.  2413.4, the presiding officer shall prepare a 
statement setting forth the time and place of the meeting and the 
persons present, which statement shall be retained by the agency. For 
each such meeting, or portion thereof, there shall also be maintained a 
complete transcript or electronic recording of the proceedings, except 
that for meetings closed pursuant to Sec.  2413.4(a), the Authority may, 
in lieu of a transcript or electronic recording, maintain a set of 
minutes fully and accurately summarizing any action taken, the reasons 
therefor and views thereon, documents considered and the members' vote 
on each rollcall vote.
    (b) The agency shall make promptly available to the public copies of 
transcripts, recordings or minutes maintained as provided in accordance 
with paragraph (a) of this section, except to the extent the items 
therein contain information which the agency determines may be withheld 
pursuant to the provisions of 5 U.S.C. 552b(c). Copies of transcripts or 
minutes, or transcriptions of electronic recordings including the 
identification of speakers, shall to the extent determined to be 
publicly available, be furnished to any person, subject to the payment 
of duplication costs in accordance with the schedule of fees set forth 
in Sec.  2411.10 of this subchapter and the actual cost of 
transcription.
    (c) The agency shall maintain a complete verbatim copy of the 
transcript, a complete copy of the minutes, or a complete electronic 
recording of each meeting, or portion of a meeting, closed to the 
public, for a period of at least two (2) years after such meeting or 
until one (1) year after the conclusion of any agency proceeding with 
respect to which the meeting or portion was held whichever occurs later.



PART 2414_EX PARTE COMMUNICATIONS--Table of Contents



Sec.
2414.1 Purpose and scope.
2414.2 Unauthorized communications.
2414.3 Definitions.
2414.4 Duration of prohibition.
2414.5 Communications prohibited.
2414.6 Communications not prohibited.
2414.7 Solicitation of prohibited communications.
2414.8 Reporting of prohibited communications; penalties.
2414.9 Penalties and enforcement.

    Authority: 5 U.S.C. 7134.

    Source: 45 FR 3495, Jan. 17, 1980, unless otherwise noted.

[[Page 405]]



Sec.  2414.1  Purpose and scope.

    This part contains the regulations of the Federal Labor Relations 
Authority relating to ex parte communications.



Sec.  2414.2  Unauthorized communications.

    (a) No interested person outside this agency shall, in any agency 
proceeding subject to 5 U.S.C. 557(a), make or knowingly cause to be 
made any prohibited ex parte communication to any Authority member, 
Administrative Law Judge, or other Authority employee who is or may 
reasonably be expected to be involved in the decisional process of the 
proceeding.
    (b) No Authority member, Administrative Law Judge, or other 
Authority employee who is or may reasonably be expected to be involved 
in the decisional process of the proceeding relevant to the merits of 
the proceeding shall: (1) Request any prohibited ex parte 
communications; or (2) make or knowingly cause to be made any prohibited 
ex parte communications about the proceeding to any interested person 
outside this agency relevant to the merits of the proceeding.



Sec.  2414.3  Definitions.

    When used in this part:
    (a) The term person outside this agency, to whom the prohibitions 
apply, shall include any individual outside the Authority, labor 
organization, agency, or other entity, or an agent thereof, and the 
General Counsel or his representative when prosecuting an unfair labor 
practice proceeding before the Authority pursuant to 5 U.S.C. 7118.
    (b) The term ex parte communication means an oral or written 
communication not on the public record with respect to which reasonable 
prior notice to all parties is not given, subject however, to the 
provisions of Sec. Sec.  2414.5 and 2414.6.



Sec.  2414.4  Duration of prohibition.

    Unless otherwise provided by specific order of the Authority entered 
in the proceeding, the prohibition of Sec.  2414.2 shall be applicable 
in any agency proceeding subject to 5 U.S.C. 557(a) beginning at the 
time of which the proceeding is noticed for hearing, unless the person 
responsible for the communication has knowledge that it will be noticed, 
in which case the prohibitions shall apply beginning at the time of such 
person's acquisition of such knowledge.



Sec.  2414.5  Communications prohibited.

    Except as provided in Sec.  2414.6, ex parte communications 
prohibited by Sec.  2414.2 shall include:
    (a) Such communications, when written, if copies thereof are not 
contemporaneously served by the communicator on all parties to the 
proceeding in accordance with the provisions of part 2429 of this 
chapter; and
    (b) Such communications, when oral, unless advance notice thereof is 
given by the communicator to all parties in the proceeding and adequate 
opportunity afforded to them to be present.



Sec.  2414.6  Communications not prohibited.

    Ex parte communications prohibited by Sec.  2414.2 shall not 
include:
    (a) Oral or written communications which relate solely to matters 
which the Hearing Officer, Regional Director, Administrative Law Judge, 
General Counsel or member of the Authority is authorized by law or 
Authority rules to entertain or dispose of on an ex parte basis;
    (b) Oral or written requests for information solely with respect to 
the status of a proceeding;
    (c) Oral or written communications which all the parties to the 
proceeding agree, or which the responsible official formally rules, may 
be made on an ex parte basis;
    (d) Oral or written communications proposing settlement or an 
agreement for disposition of any or all issues in the proceeding;
    (e) Oral or written communications which concern matters of general 
significance to the field of labor-management relations or 
administrative practice and which are not specifically related to any 
agency proceeding subject to 5 U.S.C. 557(a); or
    (f) Oral or written communications from the General Counsel to the 
Authority when the General Counsel is acting on behalf of the Authority 
under 5 U.S.C. 7123(d).

[[Page 406]]



Sec.  2414.7  Solicitation of prohibited communications.

    No person shall knowingly and willfully solicit the making of an 
unauthorized ex parte communication by any other person.



Sec.  2414.8  Reporting of prohibited communications; penalties.

    (a) Any Authority member, Administrative Law Judge, or other 
Authority employee who is or may reasonably be expected to be involved 
in the decisional process of the proceeding relevant to the merits of 
the proceeding to whom a prohibited oral ex parte communication is 
attempted to be made, shall refuse to listen to the communication, 
inform the communicator of this rule, and advise such person that if the 
person has anything to say it should be said in writing with copies to 
all parties. Any such Authority member, Administrative Law Judge, or 
other Authority employee who is or may reasonably be expected to be 
involved in the decisional process of the proceeding relevant to the 
merits of the proceeding who receives, or who makes or knowingly causes 
to be made, an unauthorized ex parte communication, shall place or cause 
to be placed on the public record of the proceeding: (1) The 
communication, if it was written; (2) a memorandum stating the substance 
of the communication, if it was oral; (3) all written responses to the 
prohibited communication; and (4) memoranda stating the substance of all 
oral responses to the prohibited communication. The Executive Director, 
if the proceeding is then pending before the Authority, the 
Administrative Law Judge, if the proceeding is then pending before any 
such judge, or the Regional Director, if the proceeding is then pending 
before a Hearing Officer or the Regional Director, shall serve copies of 
all such materials placed on the public record of the proceeding on all 
other parties to the proceeding and on the attorneys of record for the 
parties. Within ten (10) days after the mailing of such copies, any 
party may file with the Executive Director, Administrative Law Judge, or 
Regional Director serving the communication, as appropriate, and serve 
on all other parties, a statement setting forth facts or contentions to 
rebut those contained in the prohibited communication. All such 
responses shall be placed in the public record of the proceeding, and 
provision may be made for any further action, including reopening of the 
record, which may be required under the circumstances. No action taken 
pursuant to this provision shall constitute a waiver of the power of the 
Authority to impose an appropriate penalty under Sec.  2414.9.



Sec.  2414.9  Penalties and enforcement.

    (a) Where the nature and circumstances of a prohibited communication 
made by or caused to be made by a party to the proceeding are such that 
the interests of justice and statutory policy may require remedial 
action, the Authority, Administrative Law Judge, or Regional Director, 
as appropriate, may issue to the party making the communication a notice 
to show cause, returnable before the Authority, Administrative Law 
Judge, or Regional Director, within a stated period not less than seven 
(7) days from the date thereof, why the Authority, Administrative Law 
Judge, or Regional Director should not determine that the interests of 
justice and statutory policy require that the claim or interest in the 
proceeding of a party who knowingly makes a prohibited communication or 
knowingly causes a prohibited communication to be made, should be 
dismissed, denied, disregarded or otherwise adversely affected on 
account of such violation.
    (b) Upon notice and hearing, the Authority may censure, suspend, or 
revoke the privilege of practice before the agency of any person who 
knowingly and willfully makes or solicits the making of a prohibited ex 
parte communication. However, before the Authority institutes formal 
proceedings under this subsection, it shall first advise the person or 
persons concerned in writing that it proposes to take such action and 
that they may show cause, within a period to be stated in such written 
advice, but not less than seven (7) days from the date thereof, why it 
should not take such action.
    (c) The Authority may censure, or, to the extent permitted by law, 
suspend,

[[Page 407]]

dismiss, or institute proceedings for the dismissal of, any Authority 
agent who knowingly and willfully violates the prohibitions and 
requirements of this rule.



PART 2415_EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents



    Authority: E.O. 12674, 54 FR 15159 (April 12, 1989), as modified by 
E.O. 12731, 55 FR 42547 (October 17, 1990); 5 CFR 735.101, et seq., 
2634.101, et seq., 2635.101, et seq., and 2637.101, et seq.



Sec.  2415.1  Employee responsibilities and conduct.

    The Federal Labor Relations Authority, the General Counsel of the 
Federal Labor Relations Authority and the Federal Service Impasses 
Panel, respectively, hereby adopt the rules and regulations contained in 
parts 735, 2634, 2635, and 2637 of title 5 of the Code of Federal 
Regulations, prescribing standards of conduct and responsibilities, and 
governing statements reporting employment and financial interests for 
officers and employees, including special Government employees, for 
application, as appropriate, to the officers and employees, including 
special Government employees, of the Authority, the General Counsel and 
the Panel.

[74 FR 51742, Oct. 8, 2009]



PART 2416_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP 
IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE FEDERAL LABOR RELATIONS AUTHORITY--
Table of Contents



Sec.
2416.101 Purpose.
2416.102 Application.
2416.103 Definitions.
2416.104-2416.109 [Reserved]
2416.110 Notice.
2416.111-2416.129 [Reserved]
2416.130 General prohibitions against discrimination.
2416.131-2416.139 [Reserved]
2416.140 Employment.
2416.141-2416.148 [Reserved]
2416.149 Program accessibility: Discrimination prohibited.
2416.150 Program accessibility: Existing facilities.
2416.151 Program accessibility: New construction and alterations.
2416.152-2416.159 [Reserved]
2416.160 Communications.
2416.161-2416.169 [Reserved]
2416.170 Compliance procedures.
2416.171-2416.999 [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 53 FR 25881, 25885, July 8, 1988, unless otherwise noted.



Sec.  2416.101  Purpose.

    The purpose of this regulation is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of disability in 
programs or activities conducted by Executive agencies or the United 
States Postal Service.

[74 FR 51742, Oct. 8, 2009]



Sec.  2416.102  Application.

    This part applies to all programs or activities conducted by the 
agency, except for programs or activities conducted outside the United 
States that do not involve individuals with disabilities in the United 
States.

[74 FR 51742, Oct. 8, 2009]



Sec.  2416.103  Definitions.

    For purposes of this regulation, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TDD's), interpreters, notetakers, written 
materials, and other similar services and devices.

[[Page 408]]

    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Historic preservation programs means programs conducted by the 
agency that have preservation of historic properties as a primary 
purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Individual with disabilities means any person who has a physical or 
mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment.
    Qualified individual with disabilities means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with disabilities who is 
a member of a class of persons otherwise entitled by statute, 
regulation, or agency policy to receive education services from the 
agency;
    (2) With respect to any other agency program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, an individual with disabilities who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (3) With respect to any other program or activity, an individual 
with disabilities who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
    (4) Qualified disabled person as that term is defined for purposes 
of employment in 29 CFR 1615.103, which is made applicable to this 
regulation by Sec.  2416.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); and the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810). 
As used in this regulation, section 504 applies only to programs or 
activities conducted by Executive agencies and not to federally assisted 
programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.

[53 FR 25881, 25885, July 8, 1988, as amended at 74 FR 51742, Oct. 8, 
2009]



Sec. Sec.  2416.104-2416.109  [Reserved]



Sec.  2416.110  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this regulation and its 
applicability to the programs or activities conducted by the agency, and 
make such information available to them in such manner as the head of 
the agency finds necessary to apprise such persons of the protections 
against discrimination assured them by section 504 and this regulation.

[53 FR 25881, 25885, July 8, 1988. Redesignated at 75 FR 48273, Aug. 10, 
2010]



Sec. Sec.  2416.111-2416.129  [Reserved]



Sec.  2416.130  General prohibitions against discrimination.

    (a) No qualified individual with disabilities shall, on the basis of 
disability, be excluded from participation in, be denied the benefits 
of, or otherwise be subjected to discrimination

[[Page 409]]

under any program or activity conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of disability--
    (i) Deny a qualified individual with disabilities the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with disabilities an opportunity 
to participate in or benefit from the aid, benefit, or service that is 
not equal to that afforded others;
    (iii) Provide a qualified individual with disabilities with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with disabilities or to any class of individuals with 
disabilities than is provided to others unless such action is necessary 
to provide qualified individuals with disabilities with aid, benefits, 
or services that are as effective as those provided to others;
    (v) Deny a qualified individual with disabilities the opportunity to 
participate as a member of planning or advisory boards;
    (vi) Otherwise limit a qualified individual with disabilities in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified individual with disabilities 
the opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with disabilities to 
discrimination on the basis of disability; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with disabilities.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with disabilities from, deny them the 
benefits of, or otherwise subject them to discrimination under any 
program or activity conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
disabilities.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with disabilities to 
discrimination on the basis of disability.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with 
disabilities to discrimination on the basis of disability, nor may the 
agency establish requirements for the programs or activities of 
licensees or certified entities that subject qualified individuals with 
disabilities to discrimination on the basis of disability. However, the 
programs or activities of entities that are licensed or certified by the 
agency are not, themselves, covered by this regulation.
    (c) The exclusion of individuals without a disability from the 
benefits of a program limited by Federal statute or Executive order to 
individuals with disabilities or the exclusion of a specific class of 
individuals with disabilities from a program limited by Federal statute 
or Executive order to a different class of individuals with disabilities 
is not prohibited by this regulation.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with disabilities.

[74 FR 51743, Oct. 8, 2009]



Sec. Sec.  2416.131-2416.139  [Reserved]



Sec.  2416.140  Employment.

    No qualified individual with disabilities shall, on the basis of 
disability, be subject to discrimination in employment under any program 
or activity

[[Page 410]]

conducted by the agency. The definitions, requirements, and procedures 
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1614, shall apply to employment in federally conducted programs or 
activities.

[74 FR 51743, Oct. 8, 2009]



Sec. Sec.  2416.141-2416.148  [Reserved]



Sec.  2416.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec.  2416.150, no qualified 
individual with disabilities shall, because the agency's facilities are 
inaccessible to or unusable by individuals with disabilities, be denied 
the benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.

[74 FR 51743, Oct. 8, 2009]



Sec.  2416.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by individuals with disabilities. This 
paragraph does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with disabilities;
    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec.  2416.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
individuals with disabilities receive the benefits and services of the 
program or activity.
    (b) Methods--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by individuals with disabilities. The agency is 
not required to make structural changes in existing facilities where 
other methods are effective in achieving compliance with this section. 
The agency, in making alterations to existing buildings, shall meet 
accessibility requirements to the extent compelled by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), and any 
regulations implementing it. In choosing among available methods for 
meeting the requirements of this section, the agency shall give priority 
to those methods that offer programs and activities to qualified 
individuals with disabilities in the most integrated setting 
appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec.  2416.150(a) in historic preservation programs, the agency shall 
give priority to methods that provide physical access to individuals 
with disabilities. In cases where a physical alteration to an historic 
property is not required because of Sec.  2416.150(a) (2) or (3), 
alternative methods of achieving program accessibility include--

[[Page 411]]

    (i) Using audio-visual materials and devices to depict those 
portions of an historic property that cannot otherwise be made 
accessible;
    (ii) Assigning persons to guide individuals with disabilities into 
or through portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.

[74 FR 51743, Oct. 8, 2009]



Sec.  2416.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with disabilities. The definitions, requirements, and 
standards of the Architectural Barriers Act (42 U.S.C. 4151-4157), as 
established in 41 CFR 101-19.600 to 101-19.607, apply to buildings 
covered by this section.

[74 FR 51744, Oct. 8, 2009]



Sec. Sec.  2416.152-2416.159  [Reserved]



Sec.  2416.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with disabilities an equal opportunity 
to participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with disabilities.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used to communicate 
with persons with impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec.  2416.160 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or her designee after considering all agency resources available for 
use in the funding and operation of the conducted program or activity 
and must be accompanied by a written statement of the reasons for 
reaching that conclusion. If an action required to comply with this 
section would result in such an alteration or such burdens, the agency 
shall take any other action that would not result in such an alteration 
or such burdens but would nevertheless ensure that, to the maximum 
extent possible, individuals with disabilities receive the benefits and 
services of the program or activity.

[53 FR 25881, 25885, July 8, 1988, as amended at 74 FR 51744, Oct. 8, 
2009]



Sec. Sec.  2416.161-2416.169  [Reserved]



Sec.  2416.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on

[[Page 412]]

the basis of disability in programs and activities conducted by the 
agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1614 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Director, Equal Employment Opportunity, shall be responsible 
for coordinating implementation of this section. Complaints may be sent 
to Director, Equal Employment Opportunity, Federal Labor Relations 
Authority, 1400 K Street, NW., Washington, DC 20424-0001.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate Government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157) is not readily accessible to 
and useable by individuals with disabilities.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec.  2416.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[53 FR 25881, 25885, July 8, 1988, as amended at 53 FR 25881, July 8, 
1988; 68 FR 10953, Mar. 7, 2003; 74 FR 51744, Oct. 8, 2009]



Sec. Sec.  2416.171-2416.999  [Reserved]



PART 2417_TESTIMONY BY EMPLOYEES RELATING TO OFFICIAL INFORMATION 
AND PRODUCTION OF OFFICIAL RECORDS IN LEGAL PROCEEDINGS--Table of Contents



                      Subpart A_General Provisions

Sec.
2417.101 Scope and purpose.
2417.102 Applicability.
2417.103 Definitions.

 Subpart B_Requests or Demands for Testimony and Production of Documents

2417.201 General prohibition and designation of the appropriate 
          decision-maker.
2417.202 Factors that the decision-maker will consider.
2417.203 Filing requirements for litigants seeking documents or 
          testimony.
2417.204 Where to submit a request or demand.
2417.205 Consideration of requests or demands.
2417.206 Final determinations.
2417.207 Restrictions that apply to testimony.
2417.208 Restrictions that apply to released records.
2417.209 Procedure when a decision is not made before the time that a 
          response is required.
2417.210 Procedure in the event of an adverse ruling.

[[Page 413]]

                       Subpart C_Schedule of Fees

2417.301 Fees.

                           Subpart D_Penalties

2417.401 Penalties.

    Authority: 5 U.S.C. 7105; 31 U.S.C. 9701; 44 U.S.C. 3101-3107.

    Source: 74 FR 11640, Mar. 19, 2009, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2417.101  Scope and purpose.

    (a) These regulations establish policy, assign responsibilities and 
prescribe procedures with respect to:
    (1) The production or disclosure of official information or records 
by employees, members, advisors, and consultants of the Federal Labor 
Relations Authority's (FLRA's) three-Member Authority component (the 
Authority), the Office of the General Counsel(the General Counsel), or 
the Federal Service Impasses Panel (the Panel); and
    (2) The testimony of current and former employees, members, 
advisors, and consultants of the Authority, the General Counsel, or the 
Panel relating to official information, official duties, or official 
records, in connection with a legal proceeding on behalf of any party to 
a cause pending in civil federal or state litigation, including any 
proceeding before the FLRA or any other board, commission, or 
administrative agency of the United States.
    (b) The FLRA intends these provisions to:
    (1) Conserve employees' time for conducting official business;
    (2) Minimize employees' involvement in issues unrelated to the 
FLRA's mission;
    (3) Maintain employees' impartiality in disputes between private 
litigants; and
    (4) Protect sensitive, confidential information and the integrity of 
the FLRA's administrative and deliberative processes.
    (c) In providing for these requirements, the FLRA does not waive the 
sovereign immunity of the United States.
    (d) This part provides guidance for the FLRA's internal operations. 
It does not create any right or benefit, substantive or procedural, that 
a party may rely upon in any legal proceeding against the United States.

[74 FR 11640, Mar. 19, 2009,as amended at 81 FR 63362, Sept. 15, 2016]



Sec.  2417.102  Applicability.

    This part applies to requests and demands to current and former 
employees, members, advisors, and consultants for factual or expert 
testimony relating to official information or official duties, or for 
production of official records or information, in civil legal 
proceedings. This part does not apply to:
    (a) Requests for or demands upon an employee to testify as to facts 
or events that are unrelated to his or her official duties, or that are 
unrelated to the functions of the Authority, the General Counsel, or the 
Panel;
    (b) Requests for or demands upon a former employee to testify as to 
matters in which the former employee was not directly or materially 
involved while at the Authority, the General Counsel, or the Panel;
    (c) Requests for the release of records under the Freedom of 
Information Act, 5 U.S.C. 552, or the Privacy Act, 5 U.S.C. 552a;
    (d) Congressional requests and demands for testimony, records, or 
information; or
    (e) Requests or demands for testimony, records, or information by 
any Federal, state, or local agency in furtherance of an ongoing 
investigation of possible violations of criminal law.

[74 FR 11640, Mar. 19, 2009,as amended at 81 FR 63362, Sept. 15, 2016]



Sec.  2417.103  Definitions.

    The following definitions apply to this part:
    Demand means an order, subpoena, or other command of a court or 
other competent authority for the production, disclosure, or release of 
records, or for the appearance and testimony of an employee in a civil 
legal proceeding.
    Employee means:
    (1)(i) Any current or former employee or member of the Authority, 
the General Counsel, or the Panel;
    (ii) Any other individual hired through contractual agreement by or

[[Page 414]]

on behalf of the Authority, the General Counsel, or the Panel, or who 
has performed or is performing services under such an agreement for the 
Authority, the General Counsel, or the Panel; and
    (iii) Any individual who served or is serving in any consulting or 
advisory capacity to the Authority, the General Counsel, or the Panel, 
whether formal or informal.
    (2) This definition does not include former FLRA employees who agree 
to testify about general matters, matters available to the public, or 
matters with which they had no specific involvement or responsibility 
during their employment with the FLRA.
    Legal proceeding means any matter before a court of law, 
administrative board or tribunal, commission, administrative law judge, 
hearing officer, or other body that conducts a civil legal or 
administrative proceeding. Legal proceeding includes all phases of 
litigation.
    Records or official records and information means all information in 
the custody and control of the Authority, the General Counsel, or the 
Panel, relating to information in the custody and control thereof, or 
acquired by an employee while in the performance of his or her official 
duties or because of his or her official status, while the individual 
was employed by or on behalf of the Authority, the General Counsel, or 
the Panel.
    Request means any request, by whatever method, for the production of 
records and information or for testimony that has not been ordered by a 
court or other competent authority.
    Requester means anyone who makes a request or demand under this part 
upon the FLRA.
    Testimony means any written or oral statements, including 
depositions, answers to interrogatories, affidavits, declarations, 
interviews, and statements made by an individual in connection with a 
legal proceeding.

[81 FR 63362, Sept. 15, 2016]



 Subpart B_Requests or Demands for Testimony and Production of Documents



Sec.  2417.201  General prohibition and designation 
of the appropriate decision-maker.

    (a) General prohibition. No employee or former employee of the 
Authority, the General Counsel, or the Panel may produce official 
records and information or provide any testimony relating to official 
information in response to a request or demand without the prior, 
written approval of the Chairman of the FLRA, the General Counsel, or 
the Chairman of the Panel, as appropriate.
    (b) Appropriate decision-maker. (1) The Chairman of the FLRA, or his 
or her designee, determines whether to grant approval if the record 
requested or demanded is maintained by the FLRA's Authority component, 
or the person who is the subject of the request or demand is subject to 
the supervision or control of the FLRA's Authority component or was 
subject to such supervision or control when formerly employed at the 
FLRA.
    (2) The General Counsel, or his or her designee, determines whether 
to grant approval if the record requested or demanded is maintained by 
the General Counsel, or the person who is the subject of the request or 
demand is subject to the supervision or control of the General Counsel 
or was subject to such supervision or control when formerly employed at 
the FLRA.
    (3) The Chairman of the Panel, or his or her designee, determines 
whether to grant approval if the record requested or demanded is 
maintained by the Panel, or the person who is the subject of the request 
or demand is subject to the supervision or control of the Panel or was 
subject to such supervision or control when formerly employed at the 
FLRA.

[81 FR 63362, Sept. 15, 2016]



Sec.  2417.202  Factors that the decision-maker will consider.

    The Chairman of the FLRA, the General Counsel, or the Chairman of 
the Panel, as appropriate, in his or her sole discretion, may grant an 
employee permission to testify on matters relating

[[Page 415]]

to official information, or produce official records and information, in 
response to a request or demand. Among the relevant factors that the 
Chairman of the FLRA, the General Counsel, or the Chairman of the Panel 
may consider in making this decision are whether:
    (a) The purposes of this part are met;
    (b) Allowing such testimony or production of records would be 
necessary to prevent a miscarriage of justice;
    (c) Allowing such testimony or production of records would assist or 
hinder the FLRA in performing its statutory duties;
    (d) Allowing such testimony or production of records would be in the 
best interest of the FLRA;
    (e) The records or testimony can be obtained from other sources;
    (f) The request or demand is unduly burdensome or otherwise 
inappropriate under the applicable rules of discovery or the rules of 
procedure governing the case or matter in which the request or demand 
arose;
    (g) Disclosure would violate a statute, Executive Order or 
regulation;
    (h) Disclosure would reveal confidential, sensitive, or privileged 
information; trade secrets or similar, confidential or financial 
information; otherwise protected information; or information that would 
otherwise be inappropriate for release;
    (i) Disclosure would impede or interfere with an ongoing law-
enforcement investigation or proceeding, or compromise constitutional 
rights or national-security interests;
    (j) Disclosure would result in the FLRA appearing to favor one 
litigant over another;
    (k) The request was served before the demand;
    (l) A substantial Government interest is implicated;
    (m) The request or demand is within the authority of the party 
making it;
    (n) The request or demand is sufficiently specific to be answered; 
and
    (o) Any other factor deemed relevant under the circumstances of the 
particular request or demand.

[74 FR 11640, Mar. 19, 2009,as amended at 81 FR 63363, Sept. 15, 2016]



Sec.  2417.203  Filing requirements for litigants seeking documents 
or testimony.

    A requester must comply with the following requirements when filing 
a request or demand for official records and information or testimony 
under part 2417. Requesters should file a request before a demand.
    (a) The request or demand must be in writing and must be submitted 
to the FLRA's Office of the Solicitor.
    (b) The written request or demand must contain the following 
information:
    (1) The caption of the legal proceeding, docket number, and name and 
address of the court or other authority involved;
    (2) A copy of the complaint or equivalent document setting forth the 
assertions in the case and any other pleading or document necessary to 
show relevance;
    (3) A list of categories of records sought, a detailed description 
of how the information sought is relevant to the issues in the legal 
proceeding, and a specific description of the substance of the testimony 
or records sought;
    (4) A statement as to how the need for the information outweighs any 
need to maintain the confidentiality of the information and the burden 
on the FLRA to produce the records or provide testimony;
    (5) A statement indicating that the information sought is not 
available from another source, from other persons or entities, or from 
the testimony of someone other than an employee, such as a retained 
expert;
    (6) If testimony is sought, the intended use of the testimony, and a 
showing that no document could be provided and used in lieu of 
testimony;
    (7) A description of all prior decisions, orders, or pending motions 
in the case that bear upon the relevance of the requested records or 
testimony;
    (8) The name, address, and telephone number of counsel to each party 
in the case; and
    (9) An estimate of the amount of time that the requester and other 
parties will require for each employee to prepare for testimony, to 
travel to the legal proceeding, and to attend the legal proceeding.

[[Page 416]]

    (c) The Office of the Solicitor reserves the right to require 
additional information to complete the request, where appropriate.
    (d) Requesters should submit their request or demand at least 30 
days before the date that records or testimony are required. Requests or 
demands submitted fewer than 30 days before records or testimony are 
required must be accompanied by a written explanation stating the 
reasons for the late request or demand and the reasons that would 
justify expedited processing.
    (e) Failure to cooperate in good faith to enable the FLRA to make an 
informed decision may serve as the basis for a determination not to 
comply with the request or demand.
    (f) The request or demand should state that the requester will 
provide a copy of the employee's statement at the expense of the 
requester and that the requester will permit the FLRA to have a 
representative present during the employee's testimony.

[74 FR 11640, Mar. 19, 2009, as amended at 81 FR 63362, Sept. 15, 2016]



Sec.  2417.204  Where to submit a request or demand.

    (a) Requests or demands for official records, information, or 
testimony under this part must be served on the Office of the Solicitor 
at the following address: Office of the Solicitor, Federal Labor 
Relations Authority, 1400 K Street NW., Suite 201, Washington, DC 20424-
0001; telephone: (202) 218-7999; fax: (202) 343-1007; or email: 
[email protected]. The request or demand must be sent by mail, fax, or 
email and clearly marked ``Part 2417 Request for Testimony or Official 
Records in Legal Proceedings.''
    (b) A person requesting public FLRA information and non-public FLRA 
information under this part may submit a combined request for both to 
the Office of the Solicitor. If a requester decides to submit a combined 
request under this section, the FLRA will process the combined request 
under this part and not under part 2411 (the FLRA's Freedom of 
Information Act regulations).

[81 FR 63363, Sept. 15, 2016]



Sec.  2417.205  Consideration of requests or demands.

    (a) After receiving service of a request or a demand for official 
records, information, or testimony, the appropriate decision-maker will 
review the request and, in accordance with the provisions of this part, 
determine whether, or under what conditions, to authorize the employee 
to testify on matters relating to official information and/or produce 
official records and information.
    (b) Absent exigent circumstances, the appropriate decision-maker 
will issue a determination within 30 days from the date that it receives 
the request.
    (c) The appropriate decision-maker may grant a waiver of any 
procedure described by this part where a waiver is considered necessary 
to promote a significant interest of the FLRA or the United States or 
for other good cause.
    (d) The FLRA may certify that records are true copies in order to 
facilitate their use as evidence. If a requester seeks certification, 
the requester must request certified copies from the Office of the 
Solicitor at least 30 days before the date that they will be needed.

[81 FR 63363, Sept. 15, 2016]



Sec.  2417.206  Final determination.

    The Chairman of the FLRA, the General Counsel, or the Chairman of 
the Panel, as appropriate, makes the final determination on demands or 
requests to employees thereof for production of official records and 
information or testimony in civil litigation under this part. All final 
determinations are within the sole discretion of the Chairman of the 
FLRA, the General Counsel, or the Chairman of the Panel, as appropriate. 
The appropriate decision-maker will notify the requester and, when 
appropriate, the court or other competent authority of the final 
determination, the reasons for the grant or denial of the request, and 
any conditions that may be imposed on the release of records or 
information, or on the testimony of an employee. This final 
determination exhausts administrative remedies for discovery of the 
information.

[81 FR 63363, Sept. 15, 2016]

[[Page 417]]



Sec.  2417.207  Restrictions that apply to testimony.

    (a) Conditions or restrictions may be imposed on the testimony of 
employees including, for example:
    (1) Limiting the areas of testimony;
    (2) Requiring the requester and other parties to the legal 
proceeding to agree that the transcript of the testimony will be kept 
under seal;
    (3) Requiring that the transcript will be used or made available 
only in the particular legal proceeding for which testimony was 
requested. The requester may also be required to provide a copy of the 
transcript of testimony at the requester's expense.
    (b) The employee's written declaration may be provided in lieu of 
testimony.
    (c) If authorized to testify pursuant to this part, an employee may 
testify as to facts within his or her personal knowledge, but, unless 
specifically authorized to do so by the Chairman of the FLRA, the 
General Counsel, or the Chairman of the Panel, as appropriate, the 
employee shall not:
    (1) Disclose confidential or privileged information; or
    (2) For a current employee, testify as an expert or opinion witness 
with regard to any matter arising out of the employee's official duties 
or the functions of the FLRA unless testimony is being given on behalf 
of the United States (see also 5 CFR 2635.805).
    (d) The scheduling of an employee's testimony, including the amount 
of time that the employee will be made available for testimony, will be 
subject to the approval of the Chairman of the FLRA, the General 
Counsel, or the Chairman of the Panel, as appropriate.

[74 FR 11640, Mar. 19, 2009, as amended at 81 FR 63364, Sept. 15, 2016]



Sec.  2417.208  Restrictions that apply to released records.

    (a) The Chairman of the FLRA, the General Counsel, or the Chairman 
of the Panel, as appropriate may impose conditions or restrictions on 
the release of official records and information, including the 
requirement that parties to the proceeding obtain a protective order or 
execute a confidentiality agreement to limit access and any further 
disclosure. The terms of the protective order or of a confidentiality 
agreement must be acceptable to the Chairman of the FLRA, the General 
Counsel, or the Chairman of the Panel, as appropriate. In cases where 
protective orders or confidentiality agreements have already been 
executed, the Chairman of the FLRA, the General Counsel, or the Chairman 
of the Panel, as appropriate may condition the release of official 
records and information on an amendment to the existing protective order 
or confidentiality agreement.
    (b) If the Chairman of the FLRA, the General Counsel, or the 
Chairman of the Panel, as appropriate so determines, original records 
may be presented for examination in response to a request, but they may 
not be presented as evidence or otherwise used in a manner by which they 
could lose their identity as official records, nor may they be marked or 
altered. In lieu of the original records, certified copies may be 
presented for evidentiary purposes.

[81 FR 63364, Sept. 15, 2016]



Sec.  2417.209  Procedure when a decision is not made before the time 
that a response is required.

    If a response to a demand or request is required before the Chairman 
of the FLRA, the General Counsel, or the Chairman of the Panel can make 
the determination referred to in Sec.  2417.206, the Chairman of the 
FLRA, the General Counsel, or the Chairman of the Panel, when necessary, 
will provide the court or other competent authority with a copy of this 
part, inform the court or other competent authority that the request is 
being reviewed, provide an estimate as to when a decision will be made, 
and seek a stay of the demand or request pending a final determination.

[81 FR 63364, Sept. 15, 2016]



Sec.  2417.210  Procedure in the event of an adverse ruling.

    If the court or other competent authority fails to stay a demand or 
request, the employee upon whom the demand or request is made, unless 
otherwise advised by the Chairman of the FLRA, the General Counsel, or 
the

[[Page 418]]

Chairman of the Panel, as appropriate, will appear, if necessary, at the 
stated time and place, produce a copy of this part, state that the 
employee has been advised by counsel not to provide the requested 
testimony or produce documents, and respectfully decline to comply with 
the demand or request, citing United States ex rel. Touhy v. Ragen, 340 
U.S. 462 (1951).

[81 FR 63364, Sept. 15, 2016]



                       Subpart C_Schedule of Fees



Sec.  2417.301  Fees.

    (a) Generally. The Chairman of the FLRA, the General Counsel, or the 
Chairman of the Panel, as appropriate, may condition the production of 
records or appearance for testimony upon advance payment of a reasonable 
estimate of the costs.
    (b) Fees for records. Fees for producing records will include fees 
for searching, reviewing, and duplicating records; costs for employee 
time spent reviewing the request; and expenses generated by materials 
and equipment used to search for, produce, and copy the responsive 
information. The FLRA will calculate and charge these fees, costs, and 
expenses as it charges like fees and costs arising from requests made 
pursuant to the Freedom of Information Act regulations in part 2411 of 
this chapter.
    (c) Witness fees. Fees for attendance by a witness will include 
fees, expenses, and allowances prescribed by the court's rules. If no 
such fees are prescribed, witness fees will be determined based upon the 
rule of the Federal district court closest to the location where the 
witness will appear and on 28 U.S.C. 1821, as applicable. Such fees will 
include costs for time spent by the witness to prepare for testimony, to 
travel to the legal proceeding, and to attend the legal proceeding.
    (d) Payment of fees. A requester must pay witness fees for current 
employees and any record certification fees by submitting to the Office 
of the Solicitor a check or money order for the appropriate amount made 
payable to the Treasury of the United States. In the case of testimony 
of former employees, the requester must pay applicable fees directly to 
the former employee in accordance with 28 U.S.C. 1821 or other 
applicable statutes.
    (e) Waiver or reduction of fees. The Chairman of the FLRA, the 
General Counsel, or the Chairman of the Panel, as appropriate, in his or 
her sole discretion, may, upon a showing of reasonable cause, waive or 
reduce any fees in connection with the testimony, production, or 
certification of records.
    (f) De minimis fees. The FLRA will not assess fees if the total 
charge would be $10.00 or less.

[81 FR 63364, Sept. 15, 2016]



                           Subpart D_Penalties



Sec.  2417.401  Penalties.

    (a) An employee who discloses official records or information, or 
who gives testimony relating to official information, except as 
expressly authorized by the Chairman of the FLRA, the General Counsel, 
or the Chairman of the Panel, as appropriate, or as ordered by a Federal 
court after the FLRA has had the opportunity to be heard, may face the 
penalties provided in 18 U.S.C. 641 and other applicable laws. 
Additionally, former employees are subject to the restrictions and 
penalties of 18 U.S.C. 207 and 216.
    (b) A current employee who testifies or produces official records 
and information in violation of this part may be subject to disciplinary 
action.

[74 FR 11640, Mar. 19, 2009, as amended at 81 FR 63364, Sept. 15, 2016]



PART 2418_FLRA DEBT COLLECTION--Table of Contents



                      Subpart A_General Provisions

Sec.
2418.1 What definitions apply to the regulations in this part?
2418.2 Why is the FLRA issuing these regulations, and what do they 
          cover?
2418.3 Do these regulations adopt the Federal Claims Collection 
          Standards (FCCS)?

               Subpart B_Procedures to Collect FLRA Debts

2418.4 What notice will the FLRA send to a debtor when collecting an 
          FLRA debt?

[[Page 419]]

2418.5 How will the FLRA add interest, penalty charges, and 
          administrative costs to an FLRA debt?
2418.6 When will the FLRA allow a debtor to pay an FLRA debt in 
          installments instead of one lump sum?
2418.7 When will the FLRA compromise an FLRA debt?
2418.8 When will the FLRA suspend or terminate debt collection on an 
          FLRA debt?
2418.9 When will the FLRA transfer an FLRA debt to the Treasury 
          Department's Financial Management Service for collection?
2418.10 How will the FLRA use administrative offset (offset of non-tax 
          Federal payments) to collect an FLRA debt?
2418.11 How will the FLRA use tax refund offset to collect an FLRA debt?
2418.12 How will the FLRA offset a Federal employee's salary to collect 
          an FLRA debt?
2418.13 How will the FLRA use administrative wage garnishment to collect 
          an FLRA debt from a debtor's wages?
2418.14 How will the FLRA report FLRA debts to credit bureaus?
2418.15 How will the FLRA refer FLRA debts to private collection 
          agencies?
2418.16 When will the FLRA refer FLRA debts to the Department of 
          Justice?
2418.17 How does a debtor request a special review based on a change in 
          circumstances such as catastrophic illness, divorce, death, or 
          disability?
2418.18 Will the FLRA issue a refund if money is erroneously collected 
          on a debt?

 Subpart C_Procedures for Offset of FLRA Payments to Collect Debts Owed 
                        to Other Federal Agencies

2418.19 How do other Federal agencies use the offset process to collect 
          debts from payments issued by the FLRA?
2418.20 What does the FLRA do upon receipt of a request to offset the 
          salary of an FLRA employee to collect a debt owed by the 
          employee to another Federal agency?

Appendix A To Part 2418--Waiving Claims Against Flra Employees For 
          Erroneous Payments

    Authority: 5 U.S.C. 5514; 5 U.S.C. 5584; 5 U.S.C. 6402; 31 U.S.C. 
3701, 3711; 3716, 3717, 3718, 3720A, 3720D.

    Source: 80 FR 24780, May 1, 2015, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2418.1  What definitions apply to the regulations in this part?

    As used in this part:
    Administrative offset or offset means withholding funds payable by 
the United States (including funds payable by the United States on 
behalf of a State Government) to, or held by the United States for, a 
person to satisfy a debt owed by the person. The term ``administrative 
offset'' includes, but is not limited to, the offset of Federal salary, 
vendor, retirement, and Social-Security-benefit payments. The terms 
``centralized administrative offset'' and ``centralized offset'' refer 
to the process by which the Treasury Department's Financial Management 
Service offsets Federal payments through the Treasury Offset Program.
    Administrative wage garnishment means the process by which a Federal 
agency orders a non-Federal employer to withhold amounts from a debtor's 
wages to satisfy a debt, as authorized by 31 U.S.C. 3720D, 31 CFR 
285.11, and this part.
    Agency or federal agency means a department, agency, court, court 
administrative office, or instrumentality in the executive, judicial, or 
legislative branch of the Federal Government, including government 
corporations.
    Chairman means the Chairman of the FLRA or his or her designee.
    Creditor agency means any Federal agency that is owed a debt.
    Debt means any amount of money, funds, or property that has been 
determined by an appropriate official of the Federal Government to be 
owed to the United States by a person. As used in this part, the term 
``debt'' does not include, as described in 31 U.S.C. 3701(d), debts 
arising under: The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.); 
the Social Security Act (42 U.S.C. 301 et seq.), except to the extent 
provided under sections 204(f) and 1631(b)(4) of such Act [42 U.S.C. 
404(f) and 1383(b)(4)] and section 3716(c) [31 U.S.C. 3716(c)], or the 
tariff laws of the United States.
    Debtor means a person who owes a debt to the United States.
    Delinquent debt means a debt that has not been paid by the date 
specified in the agency's initial written demand for payment or 
applicable agreement or instrument (including a post-delinquency payment 
agreement) unless other satisfactory payment arrangements have been 
made.

[[Page 420]]

    Delinquent FLRA debt means a delinquent debt owed to the FLRA.
    Disposable pay has the same meaning as that term is defined in 5 CFR 
550.1103.
    Employee or Federal employee means a current employee of the FLRA or 
other Federal agency, including a current member of the Armed Forces, 
Reserve of the Armed Forces of the United States, or the National Guard.
    Executive Director means the Executive Director of the FLRA or his 
or her designee.
    FCCS means the Federal Claims Collection Standards, which were 
jointly published by the Departments of the Treasury and Justice and 
codified at 31 CFR parts 900 through 904.
    Financial Management Service means the Financial Management Service, 
a bureau of the Treasury Department, which is responsible for the 
centralized collection of delinquent debts through the offset of Federal 
payments and other means.
    FLRA means the Federal Labor Relations Authority and all of its 
components.
    FLRA debt means a debt that a person owes the FLRA.
    Payment agency or Federal payment agency means any Federal agency 
that transmits payment requests in the form of certified payment 
vouchers, or other similar forms, to a disbursing official for 
disbursement. The ``payment agency'' may be the agency that employs the 
debtor. In some cases, the FLRA may be both the creditor agency and the 
payment agency.
    Person means an individual, corporation, partnership, association, 
organization, State or local government, or any other type of entity 
other than a Federal agency.
    Salary offset means a type of administrative offset to collect, from 
the current pay account of a Federal employee, a debt that the employee 
owes.
    Tax refund offset is defined in 31 CFR 285.2(a).
    Treasury Department means the United States Department of the 
Treasury. Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt allegedly owed by an employee to an agency as 
permitted or required by 5 U.S.C. 5584, 10 U.S.C. 2774, 32 U.S.C. 716, 5 
U.S.C. 8346(b), 42 U.S.C. 404(b), or any other law.



Sec.  2418.2  Why is the FLRA issuing these regulations, 
and what do they cover?

    (a) Scope. This part provides procedures for the collection of FLRA 
debts. This part also provides procedures for collection of other debts 
owed to the United States when the FLRA receives, from another agency, a 
request for offset of an FLRA payment (for example, when an FLRA 
employee owes a debt to the United States Department of Education).
    (b) Applicability. (1) This part applies to the FLRA when collecting 
an FLRA debt, to persons who owe FLRA debts, and to Federal agencies 
requesting offset of a payment issued by the FLRA as a payment agency 
(including salary payments to FLRA employees).
    (2) This part does not apply to tax debts or to any debt for which 
there is an indication of fraud or misrepresentation, as described in 31 
CFR 900.3 of the FCCS, unless the Department of Justice returns the debt 
to the FLRA for handling.
    (3) Nothing in this part precludes collection or disposition of any 
debt under statutes and regulations other than those described in this 
part. See, for example, 5 U.S.C. 5705, Advancements and Deductions, 
which authorizes agencies to recover travel advances by offset of up to 
100% of a Federal employee's accrued pay. See, also, 5 U.S.C. 4108, 
governing the collection of training expenses. To the extent that the 
provisions of laws and other regulations differ from the provisions of 
this part, those provisions of law and other regulations--and not the 
provisions of this part--apply to the remission or mitigation of fines, 
penalties, and forfeitures, as well as debts arising under the tariff 
laws of the United States.
    (c) Duplication not required. Nothing in this part requires the FLRA 
to duplicate notices or administrative proceedings required by contract, 
this part, or other laws or regulations.
    (d) Use of multiple collection remedies allowed. The FLRA and other 
Federal agencies may simultaneously use multiple collection remedies to 
collect a debt, except as prohibited by law. This

[[Page 421]]

part is intended to promote aggressive debt collection, using for each 
debt all available collection remedies. These remedies are not listed in 
any prescribed order, so that the FLRA may have flexibility in 
determining which remedies will be most efficient in collecting the 
particular debt.



Sec.  2418.3  Do these regulations adopt the Federal Claims 
Collection Standards (FCCS)?

    This part adopts and incorporates all provisions of the FCCS. This 
part also supplements the FCCS by prescribing procedures consistent with 
the FCCS, as necessary and appropriate for FLRA operations.



               Subpart B_Procedures to Collect FLRA Debts



Sec.  2418.4  What notice will the FLRA send to a debtor when collecting 
an FLRA debt?

    (a) Notice requirements. The FLRA shall aggressively collect FLRA 
debts. The FLRA shall promptly send at least one written notice to a 
debtor informing the debtor of the consequences of failing to pay or 
otherwise resolve an FLRA debt. The notice(s) shall be sent to the 
debtor at the most current address of the debtor in the FLRA's records. 
Generally, before starting the collection actions described in 
Sec. Sec.  2418.5 and 2418.9 through 2418.16, the FLRA will send no more 
than two written notices to the debtor. The purpose of the notice(s) is 
to explain why the debt is owed, the amount of the debt, how a debtor 
may pay the debt or make alternative payment arrangements, how a debtor 
may review documents related to the debt, how a debtor may dispute the 
debt, the collection remedies available to the FLRA if the debtor 
refuses to pay the debt, and other consequences to the debtor if the 
debt is not paid. Except as otherwise provided in paragraph (b) of this 
section, the written notice(s) shall explain to the debtor:
    (1) The nature and amount of the debt, and the facts giving rise to 
the debt;
    (2) How interest, penalties, and administrative costs are added to 
the debt, the date by which payment should be made to avoid such 
charges, and that such assessments must be made unless excused in 
accordance with 31 CFR 901.9 (see Sec.  2418.5);
    (3) The date by which payment should be made to avoid the enforced 
collection actions described in paragraph (a)(6) of this section;
    (4) The FLRA's willingness to discuss alternative payment 
arrangements and how the debtor may enter into a written agreement to 
repay the debt under terms acceptable to the FLRA (see Sec.  2418.6);
    (5) The name, address, and telephone number of a contact person or 
office within the FLRA;
    (6) The FLRA's intention to enforce collection if the debtor fails 
to pay or otherwise resolve the debt, by taking one or more of the 
following actions:
    (i) Offset. Offset the debtor's Federal payments, including income-
tax refunds, salary, certain benefit payments (such as Social Security), 
retirement, vendor, travel reimbursements and advances, and other 
Federal payments (see Sec. Sec.  2418.10 through 2418.12);
    (ii) Private collection agency. Refer the debt to a private 
collection agency (see Sec.  2418.15);
    (iii) Credit-bureau reporting. Report the debt to a credit bureau 
(see Sec.  2418.14);
    (iv) Administrative wage garnishment. Garnish the debtor's wages 
through administrative wage garnishment (see Sec.  2418.13);
    (v) Litigation. Refer the debt to the Department of Justice to 
initiate litigation to collect the debt (see Sec.  2418.16);
    (vi) Treasury Department's Financial Management Service. Refer the 
debt to the Financial Management Service for collection (see Sec.  
2418.9);
    (7) That Treasury debts over 180 days delinquent must be referred to 
the Financial Management Service for the collection actions described in 
paragraph (a)(6) of this section (see Sec.  2418.9);
    (8) How the debtor may inspect and copy records related to the debt;
    (9) How the debtor may request a review of the FLRA's determination 
that the debtor owes a debt and present evidence that the debt is not 
delinquent or legally enforceable (see Sec. Sec.  2418.10(c) and 
2418.11(c));

[[Page 422]]

    (10) How a debtor may request a hearing if the FLRA intends to 
garnish the debtor's private-sector (i.e., non-Federal) wages (see Sec.  
2418.13(a)), including:
    (i) The method and time period for requesting a hearing;
    (ii) That the timely filing of a request for a hearing on or before 
the 15th business day following the date of the notice will stay the 
commencement of administrative wage garnishment, but not necessarily 
other collection procedures; and
    (iii) The name and address of the office to which the request for a 
hearing should be sent.
    (11) How a debtor who is a Federal employee subject to Federal 
salary offset may request a hearing (see Sec.  2418.12(e)), including:
    (i) The method and time period for requesting a hearing;
    (ii) That the timely filing of a request for a hearing on or before 
the 15th calendar day following receipt of the notice will stay the 
commencement of salary offset, but not necessarily other collection 
procedures;
    (iii) The name and address of the office to which the request for a 
hearing should be sent;
    (iv) That the FLRA will refer the debt to the debtor's employing 
agency or to the Financial Management Service to implement salary 
offset, unless the employee files a timely request for a hearing;
    (v) That a final decision on the hearing, if requested, will be 
issued at the earliest practical date, but not later than 60 days after 
the filing of the request for a hearing, unless the employee requests 
and the hearing official grants a delay in the proceedings;
    (vi) That any knowingly false or frivolous statements, 
representations, or evidence may subject the Federal employee to 
penalties under the False Claims Act (31 U.S.C. 3729-3731) or other 
applicable statutory authority, and criminal penalties under 18 U.S.C. 
286, 287, 1001, and 1002, or other applicable statutory authority;
    (vii) That, unless prohibited by contract or statute, amounts paid 
on or deducted for the debt that are later waived or found not owed to 
the United States will be promptly refunded to the employee; and
    (viii) That 5 U.S.C. 5514 and 31 U.S.C. 3716 govern proceedings with 
respect to such debt.
    (12) How the debtor may request a waiver of the debt, if applicable 
(see Appendix A of this part);
    (13) How the debtor's spouse may claim his or her share of a joint-
income-tax refund by filing Form 8379 with the Internal Revenue Service 
(see http://www.irs.gov);
    (14) How the debtor may exercise other statutory or regulatory 
rights and remedies available to the debtor;
    (15) That an employee's involuntary payment of all or any portion of 
a debt being collected will not be construed as a waiver of any rights 
that the employee may have under any provision of contract or law, 
unless there are statutory, regulatory, or contractual provisions to the 
contrary; and
    (16) That the debtor should advise the FLRA of a bankruptcy 
proceeding of the debtor or another person liable for the debt being 
collected.
    (b) Exceptions to notice requirements. The FLRA may omit from a 
notice to a debtor one or more of the provisions contained in paragraphs 
(a)(6) through (16) of this section if the FLRA, in consultation with 
its legal counsel, determines that any provision is not legally required 
given the collection remedies to be applied to a particular debt.
    (c) Respond to debtors; comply with FCCS. The FLRA will respond 
promptly to communications from debtors and comply with other FCCS 
provisions applicable to the administrative collection of debts. See 31 
CFR part 901.



Sec.  2418.5  How will the FLRA add interest, penalty charges, 
and administrative costs to an FLRA debt?

    (a) Assessment and notice. The FLRA shall assess interest, 
penalties, and administrative costs on FLRA debts in accordance with the 
provisions of 31 U.S.C. 3717 and 31 CFR 901.9. Interest shall be charged 
in accordance with the requirements of 31 U.S.C. 3717(a). Penalties 
shall accrue at the rate of 6% per year, or such other higher rate as 
authorized by law. The FLRA shall determine administrative costs, that 
is, the costs of processing and handling a delinquent debt. In the 
notice to the debtor described in Sec.  2418.4, the FLRA

[[Page 423]]

must explain how interest, penalties, costs, and other charges are 
assessed, unless the requirements are included in a contract or 
repayment agreement.
    (b) Waiver of interest, penalties, and administrative costs. Unless 
otherwise required by law, the FLRA may not charge interest if the 
amount due on the debt is paid within 30 days after the date from which 
the interest accrues. See 31 U.S.C. 3717(d). The FLRA may waive 
interest, penalties, and administrative costs, or any portion thereof, 
when it would be against equity and good conscience or not in the FLRA's 
best interest to collect such charges, in accordance with FLRA 
guidelines for waiving claims against FLRA employees for erroneous 
overpayments. See appendix A of this part.
    (c) Accrual during suspension of debt collection. In most cases, 
interest, penalties, and administrative costs will begin and continue to 
accrue 30 days after notice is given to the employee and during any 
period when collection has been suspended for any reason (for example, 
when the debtor has requested a hearing). The FLRA may suspend accrual 
of any or all of these charges when accrual would be against equity and 
good conscience or not in the FLRA's best interest, in accordance with 
FLRA guidelines for waiving claims against FLRA employees for erroneous 
overpayments. See appendix A of this part.



Sec.  2418.6  When will the FLRA allow a debtor to pay an FLRA debt 
in installments instead of one lump sum?

    If a debtor is financially unable to pay the debt in one lump sum, 
then the FLRA may accept payment of an FLRA debt in regular 
installments, in accordance with 31 CFR 901.8.



Sec.  2418.7  When will the FLRA compromise an FLRA debt?

    If the FLRA cannot collect the full amount of an FLRA debt, then the 
FLRA may compromise the debt in accordance with 31 CFR part 902.



Sec.  2418.8  When will the FLRA suspend or terminate debt collection 
on an FLRA debt?

    If, after pursuing all appropriate means of collection, the FLRA 
determines that an FLRA debt is uncollectible, then the FLRA may suspend 
or terminate debt-collection activity in accordance with the provisions 
of 31 CFR part 903 and the FLRA's policies and procedures.



Sec.  2418.9  When will the FLRA transfer an FLRA debt 
to the Treasury Department's Financial Management Service for collection?

    (a) The FLRA will transfer any eligible debt that is more than 180 
days delinquent to the Financial Management Service for debt-collection 
services, a process known as ``cross-servicing.'' See 31 U.S.C. 3711(g) 
and 31 CFR 285.12. The FLRA may transfer debts delinquent 180 days or 
less to the Financial Management Service in accordance with the 
procedures described in 31 CFR 285.12. The Financial Management Service 
takes appropriate action to collect or compromise the transferred debt, 
or to suspend or terminate collection action thereon, in accordance with 
the statutory and regulatory requirements and authorities applicable to 
the debt and the collection action to be taken. See 31 CFR 285.12(c)(2). 
Appropriate action includes, but is not limited to: Contact with the 
debtor; referral of the debt to the Treasury Offset Program, private 
collection agencies, or the Department of Justice; reporting of the debt 
to credit bureaus; and administrative wage garnishment.
    (b) At least sixty (60) days before transferring an FLRA debt to the 
Financial Management Service, the FLRA will send notice to the debtor as 
required by Sec.  2418.4. The FLRA will certify to the Financial 
Management Service, in writing, that the debt is valid, delinquent, 
legally enforceable, and that there are no legal bars to collection. In 
addition, the FLRA will certify its compliance with all applicable due-
process and other requirements as described in this part and other 
Federal laws. See 31 CFR 285.12(i) regarding the certification 
requirement.
    (c) As part of its debt-collection process, the Financial Management 
Service uses the Treasury Offset Program to collect Treasury debts by 
administrative and tax-refund offset. See 31 CFR 285.12(g). The Treasury 
Offset Program

[[Page 424]]

is a centralized offset program administered by the Financial Management 
Service to collect delinquent debts owed to Federal agencies and states 
(including past-due child support). Under the Treasury Offset Program, 
before a Federal payment is disbursed, the Financial Management Service 
compares the name and taxpayer identification number (TIN) of the payee 
with the names and TINs of debtors that have been submitted by Federal 
agencies and states to the Treasury Offset Program database. If there is 
a match, the Financial Management Service (or, in some cases, another 
Federal disbursing agency) offsets all or a portion of the Federal 
payment, disburses any remaining payment to the payee, and pays the 
offset amount to the creditor agency. Federal payments eligible for 
offset include, but are not limited to, income-tax refunds, salary, 
travel advances and reimbursements, retirement and vendor payments, and 
Social Security and other benefit payments.



Sec.  2418.10  How will the FLRA use administrative offset 
(offset of non-tax Federal payments) to collect an FLRA debt?

    (a) Centralized administrative offset through the Treasury Offset 
Program. (1) In most cases, the Financial Management Service uses the 
Treasury Offset Program to collect Treasury debts by the offset of 
Federal payments. See Sec.  2418.9(c). If not already transferred to the 
Financial Management Service under Sec.  2418.9, the FLRA will refer any 
eligible debt over 180 days delinquent to the Treasury Offset Program 
for collection by centralized administrative offset. See 31 U.S.C. 
3716(c)(6); 31 CFR part 285, subpart A; and 31 CFR 901.3(b). The FLRA 
may refer any eligible debt less than 180 days delinquent to the 
Treasury Offset Program for offset.
    (2) At least sixty (60) days prior to referring a debt to the 
Treasury Offset Program, in accordance with paragraph (a)(1) of this 
section, the FLRA will send notice to the debtor in accordance with the 
requirements of Sec.  2418.4. The FLRA will certify to the Financial 
Management Service, in writing, that the debt is valid, delinquent, 
legally enforceable, and that there are no legal bars to collection by 
offset. In addition, the FLRA will certify its compliance with the 
requirements described in this part.
    (b) Non-centralized administrative offset for FLRA debts. (1) When 
centralized administrative offset through the Treasury Offset Program is 
not available or appropriate, the FLRA may collect past-due, legally 
enforceable FLRA debts through non-centralized administrative offset. 
See 31 CFR 901.3(c). In these cases, the FLRA may offset a payment 
internally or make an offset request directly to a Federal payment 
agency.
    (2) At least thirty (30) days prior to offsetting a payment 
internally or requesting a Federal payment agency to offset a payment, 
the FLRA will send notice to the debtor in accordance with the 
requirements of Sec.  2418.4. (For debts outstanding more than ten (10) 
years on or before June 11, 2009, the FLRA will comply with the 
additional notification requirements of 31 CFR 285.7(d).) When referring 
a debt for offset under this paragraph (b), the FLRA will certify, in 
writing, that the debt is valid, delinquent, legally enforceable, and 
that there are no legal bars to collection by offset. In addition, the 
FLRA will certify its compliance with these regulations concerning 
administrative offset. See 31 CFR 901.3(c)(2)(ii).
    (c) Administrative review. The notice described in Sec.  2418.4 
shall explain to the debtor how to request an administrative review of 
the FLRA's determination that the debtor owes an FLRA debt and how to 
present evidence that the debt is not delinquent or legally enforceable. 
In addition to challenging the existence and amount of the debt, the 
debtor may seek a review of the terms of repayment. In most cases, the 
FLRA will provide the debtor with a ``paper hearing'' based upon a 
review of the written record, including documentation provided by the 
debtor. The FLRA shall provide the debtor with a reasonable opportunity 
for an oral hearing when the debtor requests reconsideration of the debt 
and the FLRA determines that the question of the indebtedness cannot be 
resolved by review of the documentary evidence, for example, when the 
validity of the debt turns on an issue of credibility or

[[Page 425]]

veracity. Unless otherwise required by law, an oral hearing under this 
section is not required to be a formal evidentiary hearing, although the 
FLRA will carefully document all significant matters discussed at the 
hearing. The FLRA may suspend collection through administrative offset 
and/or other collection actions pending the resolution of a debtor's 
dispute.
    (d) Procedures for expedited offset. Under the circumstances 
described in 31 CFR 901.3(b)(4)(iii), the FLRA may effect an offset 
against a payment to be made to the debtor prior to sending a notice to 
the debtor, as described in Sec.  2418.4, or completing the procedures 
described in paragraph (b)(2) and (c) of this section. The FLRA shall 
give the debtor notice and an opportunity for review as soon as 
practicable and promptly refund any money ultimately found not to have 
been owed to the Government.



Sec.  2418.11  How will the FLRA use tax-refund offset to collect an FLRA debt?

    (a) Tax-refund offset. In most cases, the Financial Management 
Service uses the Treasury Offset Program to collect FLRA debts by the 
offset of tax refunds and other Federal payments. See Sec.  2418.9(c). 
If not already transferred to the Financial Management Service under 
Sec.  2418.9, the FLRA will refer to the Treasury Offset Program any 
past-due, legally enforceable debt for collection by tax-refund offset. 
See 26 U.S.C. 6402(d), 31 U.S.C. 3720A and 31 CFR 285.2.
    (b) Notice. At least sixty (60) days before referring a debt to the 
Treasury Offset Program, the FLRA will send notice to the debtor in 
accordance with the requirements of Sec.  2418.4. The FLRA will certify 
to the Financial Management Service's Treasury Offset Program, in 
writing, that the debt is past due and legally enforceable in the amount 
submitted and that the FLRA has made reasonable efforts to obtain 
payment of the debt as described in 31 CFR 285.2(d). In addition, the 
FLRA will certify its compliance with all applicable due-process and 
other requirements described in this part and other Federal laws. See 31 
U.S.C. 3720A(b) and 31 CFR 285.2.
    (c) Administrative review. The notice described in Sec.  2418.4 
shall provide the debtor with at least 60 days prior to the initiation 
of tax-refund offset to request an administrative review as described in 
Sec.  2418.10(c). The FLRA may suspend collection through tax-refund 
offset and/or other collection actions pending the resolution of the 
debtor's dispute.



Sec.  2418.12  How will the FLRA offset a Federal employee's salary 
to collect an FLRA debt?

    (a) Federal salary offset. (1) Salary offset is used to collect 
debts that FLRA employees and other Federal employees owe to the United 
States. If a Federal employee owes an FLRA debt, then the FLRA may 
offset the employee's Federal salary to collect the debt in the manner 
described in this section. For information on how a Federal agency other 
than the FLRA may collect debt from the salary of an FLRA employee, see 
Sec. Sec.  2418.19 and 2418.20.
    (2) Nothing in this part requires the FLRA to collect an FLRA debt 
in accordance with this section if Federal law allows otherwise. See, 
for example, 5 U.S.C. 5705 (travel advances not used for allowable 
travel expenses are recoverable from the employee or his estate by 
setoff against accrued pay and other means) and 5 U.S.C. 4108 (recovery 
of training expenses).
    (3) The FLRA may use the administrative-wage-garnishment procedure 
described in Sec.  2418.13 to collect a debt from an individual's non-
Federal wages.
    (b) Centralized salary offset through the Treasury Offset Program. 
As described in Sec.  2418.9(a), the FLRA will refer FLRA debts to the 
Financial Management Service for collection by administrative offset, 
including salary offset, through the Treasury Offset Program. When 
possible, the FLRA will attempt salary offset through the Treasury 
Offset Program before applying the procedures in paragraph (c) of this 
section. See 5 CFR 550.1109.
    (c) Non-centralized salary offset for FLRA debts. When centralized 
salary offset through the Treasury Offset Program is not available or 
appropriate, the FLRA may collect delinquent FLRA debts through non-
centralized

[[Page 426]]

salary offset. See 5 CFR 550.1109. In these cases, the FLRA may offset a 
payment internally or make a request directly to a Federal payment 
agency to offset a salary payment to collect a delinquent debt that a 
Federal employee owes. At least thirty (30) days prior to offsetting 
internally or requesting a Federal agency to offset a salary payment, 
the FLRA will send notice to the debtor in accordance with the 
requirements of Sec.  2418.4. (For debts outstanding more than ten (10) 
years on or before June 11, 2009, the FLRA will comply with the 
additional notification requirements of 31 CFR 285.7(d).) When referring 
a debt for offset, the FLRA will certify to the payment agency, in 
writing, that the debt is valid, delinquent, and legally enforceable in 
the amount stated, and that there are no legal bars to collection by 
salary offset. In addition, the FLRA will certify that all due-process 
and other prerequisites to salary offset have been met. See 5 U.S.C. 
5514, 31 U.S.C. 3716(a), and this section for a description of the due-
process and other prerequisites for salary offset.
    (d) When prior notice not required. The FLRA is not required to 
provide prior notice to an employee when the FLRA makes the following 
adjustments to an FLRA employee's pay:
    (1) Any adjustment to pay arising out of any employee's election of 
coverage or a change in coverage under a Federal-benefits program 
requiring periodic deductions from pay, if the amount to be recovered 
was accumulated over four pay periods or less;
    (2) A routine intra-agency adjustment of pay that is made to correct 
an overpayment of pay attributable to clerical or administrative errors 
or delays in processing pay documents, if the overpayment occurred 
within the four pay periods preceding the adjustment, and, at the time 
of such adjustment, or as soon thereafter as practical, the individual 
is provided written notice of the nature and the amount of the 
adjustment and the point of contact for contesting such adjustment; or
    (3) Any adjustment to collect a debt amounting to $ 50 or less, if, 
at the time of such adjustment, or as soon thereafter as practical, the 
individual is provided written notice of the nature and the amount of 
the adjustment and a point of contact for contesting such adjustment.
    (e) Hearing procedures--(1) Request for a hearing. A Federal 
employee who has received a notice that his or her FLRA debt will be 
collected by means of salary offset may request a hearing concerning the 
existence or amount of the debt. The Federal employee also may request a 
hearing concerning the amount proposed to be deducted from the 
employee's pay each pay period. The employee must send any request for 
hearing, in writing, to the office designated in the notice described in 
Sec.  2418.4. See Sec.  2418.4(a)(11). The request must be received by 
the designated office on or before the 15th calendar day following the 
employee's receipt of the notice. The employee must sign the request and 
specify whether an oral or paper hearing is requested. If an oral 
hearing is requested, then the employee must explain why the matter 
cannot be resolved by review of the documentary evidence alone. An oral 
hearing may, at the debtor's option, be conducted either in-person or by 
telephone conference. All travel expenses incurred by the Federal 
employee in connection with an in-person hearing will be borne by the 
employee. All telephonic charges incurred during the hearing will be the 
responsibility of the agency.
    (2) Failure to submit timely request for hearing. If the employee 
fails to submit a request for hearing within the time period described 
in paragraph (e)(1) of this section, then the employee will have waived 
the right to a hearing, and salary offset may be initiated. However, the 
FLRA will accept a late request for hearing if the employee can show 
that the late request was the result of circumstances beyond the 
employee's control or because of a failure to receive actual notice of 
the filing deadline.
    (3) Hearing official. The FLRA must obtain the services of a hearing 
official who is not under the supervision or control of the Chairman. 
The FLRA may contact an agent of any agency designated in appendix A to 
5 CFR part 581 (List of Agents Designated to Accept Legal Process) to 
request a hearing official.

[[Page 427]]

    (4) Notice of hearing. After the employee requests a hearing, the 
designated hearing official shall inform the employee of the form of the 
hearing to be provided. For oral hearings, the notice shall set forth 
the date, time, and location of the hearing. For paper hearings, the 
notice shall notify the employee of the date by which he or she should 
submit written arguments to the designated hearing official. The hearing 
official shall give the employee reasonable time to submit documentation 
in support of the employee's position. The hearing official shall 
schedule a new hearing date if requested by both parties. The hearing 
official shall give both parties reasonable notice of the time and place 
of a rescheduled hearing.
    (5) Oral hearing. The hearing official will conduct an oral hearing 
if he or she determines that the matter cannot be resolved by review of 
documentary evidence alone (for example, when an issue of credibility or 
veracity is involved). The hearing need not take the form of an 
evidentiary hearing, but may be conducted in a manner determined by the 
hearing official, including but not limited to:
    (i) Informal conferences with the hearing official, in which the 
employee and agency representative will be given full opportunity to 
present evidence, witnesses, and argument;
    (ii) Informal meetings with an interview of the employee by the 
hearing official; or
    (iii) Formal written submissions, with an opportunity for oral 
presentation.
    (6) Paper hearing. If the hearing official determines that an oral 
hearing is not necessary, then he or she will make the determination 
based upon a review of the available written record, including any 
documentation submitted by the employee in support of his or her 
position.
    (7) Failure to appear or submit documentary evidence. In the absence 
of good cause shown (for example, excused illness), if the employee 
fails to appear at an oral hearing or fails to submit documentary 
evidence as required for a paper hearing, then the employee will have 
waived the right to a hearing, and salary offset shall be initiated. If 
the FLRA representative fails to appear at an oral hearing, then the 
hearing official shall proceed with the hearing as scheduled, and make 
his or her determination based upon the oral testimony presented and the 
documentary evidence submitted by both parties.
    (8) Burden of proof. The FLRA will have the initial burden to prove 
the existence and amount of the debt. Thereafter, if the employee 
disputes the existence or amount of the debt, then the employee must 
prove by a preponderance of the evidence that no debt exists or that the 
amount of the debt is incorrect. In addition, the employee may present 
evidence that the proposed terms of the repayment schedule are unlawful, 
would cause a financial hardship to the employee, or that collection of 
the debt may not be pursued due to operation of law.
    (9) Record. The hearing official shall maintain a summary record of 
any hearing provided by this part. Witnesses will testify under oath or 
affirmation in oral hearings.
    (10) Date of decision. The hearing official shall issue a written 
opinion stating his or her decision, based upon documentary evidence and 
information developed at the hearing, as soon as practicable after the 
hearing, but not later than 60 days after the date on which the FLRA 
received the request for hearing. If the employee requests a delay in 
the proceedings, then the deadline for the decision may be postponed by 
the number of days by which the hearing was postponed. When a decision 
is not timely rendered, the FLRA shall waive penalties applied to the 
debt for the period beginning with the date the decision is due and 
ending on the date the decision is issued.
    (11) Content of decision. The written decision shall include:
    (i) A statement of the facts presented to support the origin, 
nature, and amount of the debt;
    (ii) The hearing official's findings, analysis, and conclusions; and
    (iii) The terms of any repayment schedules, if applicable.
    (12) Final agency action. The hearing official's decision shall be 
final.
    (f) Waiver not precluded. Nothing in this part precludes an employee 
from requesting waiver of an overpayment

[[Page 428]]

under 5 U.S.C. 5584 or 8346(b), 10 U.S.C. 2774, 32 U.S.C. 716, or other 
statutory authority.
    (g) Salary-offset process--(1) Determination of disposable pay. The 
FLRA's Office of the Executive Director will determine the amount of an 
FLRA employee's disposable pay (as defined in Sec.  2418.1) and will 
implement salary offset when requested to do so by the FLRA, as 
described in paragraph (c) of this section, or another agency, as 
described in Sec.  2418.19. If the debtor is not employed by the FLRA, 
then the agency employing the debtor will determine the amount of the 
employee's disposable pay and will implement salary offset upon request.
    (2) When salary offset begins. Deductions shall normally begin 
within three official pay periods following receipt of the creditor 
agency's request for offset.
    (3) Amount of salary offset. The amount to be offset from each 
salary payment will be up to 15 percent of a debtor's disposable pay, as 
follows:
    (i) If the amount of the debt is equal to or less than 15 percent of 
the disposable pay, then such debt generally will be collected in one 
lump-sum payment;
    (ii) Installment deductions will be made over a period of no greater 
than the anticipated period of employment. An installment deduction will 
not exceed 15 percent of the disposable pay from which the deduction is 
made unless the employee has agreed in writing to the deduction of a 
greater amount, or a higher deduction has been ordered by a court under 
section 124 of Public Law 97-276 (96 Stat. 1195), or the creditor agency 
has determined that smaller deductions are appropriate based on the 
employee's ability to pay.
    (4) Final salary payment. After the employee has separated either 
voluntarily or involuntarily from the payment agency, the payment agency 
may make a lump-sum deduction exceeding 15 percent of disposable pay 
from any final salary or other payments pursuant to 31 U.S.C. 3716 in 
order to satisfy a debt.
    (h) Payment agency's responsibilities. (1) As required by 5 CFR 
550.1109, if the employee separates from the payment agency from which 
the FLRA has requested salary offset, then the payment agency must 
certify the total amount of its collection and notify the FLRA and the 
employee of the amounts collected. If the payment agency is aware that 
the employee is entitled to payments from the Civil Service Retirement 
Fund and Disability Fund, the Federal Employee Retirement System, or 
other similar payments, then it must provide written notification to the 
payment agency responsible for making such payments that the debtor owes 
a debt, the amount of the debt, and that the FLRA has complied with the 
provisions of this section. The FLRA must submit a properly certified 
claim to the new payment agency before the collection can be made.
    (2) If the employee is already separated from employment and all 
payments due from his or her former payment agency have been made, then 
the FLRA may request that money due and payable to the employee from the 
Civil Service Retirement Fund and Disability Fund, the Federal Employee 
Retirement System, or other similar funds, be administratively offset to 
collect the debt. Generally, the FLRA will collect such monies through 
the Treasury Offset Program as described in Sec.  2418.9(c).
    (3) When an employee transfers to another agency, the FLRA should 
resume collection with the employee's new payment agency in order to 
continue salary offset.



Sec.  2418.13  How will the FLRA use administrative wage garnishment 
to collect an FLRA debt from a debtor's wages?

    (a) The FLRA is authorized to collect debts from a debtor's wages by 
means of administrative wage garnishment in accordance with the 
requirements of 31 U.S.C. 3720D and 31 CFR 285.11. This part adopts and 
incorporates all of the provisions of 31 CFR 285.11 concerning 
administrative wage garnishment, including the hearing procedures 
described in 31 CFR 285.11(f). The FLRA may use administrative wage 
garnishment to collect a delinquent FLRA debt unless the debtor is 
making timely payments under an agreement to pay the debt in 
installments (see Sec.  2418.6). At least thirty (30) days before

[[Page 429]]

initiating an administrative wage garnishment, the FLRA will send notice 
to the debtor in accordance with the requirements of Sec.  2418.4 of 
this part, including the requirements of Sec.  2418.4(a)(10). (For debts 
outstanding more than ten (10) years on or before June 11, 2009, the 
FLRA will comply with the additional notification requirements of 31 CFR 
285.7(d).) For FLRA debts referred to the Financial Management Service 
under Sec.  2418.9, the FLRA may authorize the Financial Management 
Service to send a notice informing the debtor that administrative wage 
garnishment will be initiated and how the debtor may request a hearing 
as described in Sec.  2418.4(a)(10). If a debtor makes a timely request 
for a hearing, administrative wage garnishment will not begin until a 
hearing is held and a decision is sent to the debtor. See 31 CFR 
285.11(f)(4). If a debtor's hearing request is not timely, then the FLRA 
may suspend collection by administrative wage garnishment in accordance 
with the provisions of 31 CFR 285.11(f)(5). All travel expenses incurred 
by the debtor in connection with an in-person hearing will be borne by 
the debtor. If a hearing is conducted telephonically, all telephonic 
charges incurred during the hearing will be the responsibility of the 
agency.
    (b) This section does not apply to Federal salary offset, the 
process by which the FLRA collects debts from the salaries of Federal 
employees (see Sec.  2418.12).



Sec.  2418.14  How will the FLRA report FLRA debts to credit bureaus?

    The FLRA shall report delinquent FLRA debts to credit bureaus in 
accordance with 31 U.S.C. 3711(e), 31 CFR 901.4, and the Office of 
Management and Budget Circular A-129, ``Policies for Federal Credit 
Programs and Nontax Receivables.'' For additional information, see 
Financial Management Service's ``Guide to the Federal Credit Bureau 
Program,'' which may be found at http://www.fms.treas.gov/debt. At least 
sixty (60) days prior to reporting a delinquent debt to a consumer-
reporting agency, the FLRA will send notice to the debtor in accordance 
with the requirements of Sec.  2418.4. Before disclosing information to 
a consumer-reporting agency, the FLRA shall provide, on request of a 
person alleged to be responsible for the delinquent debt, for a review 
of the obligation of the debtor, including an opportunity for 
reconsideration of the initial decision on the debt. The FLRA may 
authorize the Financial Management Service to report to credit bureaus 
those delinquent FLRA debts that have been transferred to the Financial 
Management Service under Sec.  2418.9.



Sec.  2418.15  How will the FLRA refer FLRA debts 
to private collection agencies?

    The FLRA will transfer delinquent FLRA debts to the Financial 
Management Service to obtain debt-collection services provided by 
private collection agencies. See Sec.  2418.9.



Sec.  2418.16  When will the FLRA refer FLRA debts 
to the Department of Justice?

    (a) Compromise or suspension or termination of collection activity. 
The FLRA shall refer FLRA debts having a principal balance over $ 
100,000, or such higher amount as authorized by the Attorney General, to 
the Department of Justice for approval of any compromise of a debt or 
suspension or termination of collection activity. See Sec. Sec.  2418.7 
and 2418.8; 31 CFR 902.1; 31 CFR 903.1.
    (b) Litigation. The FLRA shall promptly refer to the Department of 
Justice for litigation delinquent FLRA debts on which aggressive 
collection activity has been taken in accordance with this part and that 
should not be compromised, and on which collection activity should not 
be suspended or terminated. See 31 CFR part 904. The FLRA may authorize 
the Financial Management Service to refer to the Department of Justice 
for litigation those delinquent FLRA debts that have been transferred to 
the Financial Management Service under Sec.  2418.9.



Sec.  2418.17  How does a debtor request a special review based on a change 
in circumstances such as catastrophic illness, divorce, death, or disability?

    (a) Material change in circumstances. A debtor who owes an FLRA debt 
may, at any time, request a special review by the FLRA of the amount of 
any offset, administrative wage garnishment, or

[[Page 430]]

voluntary payment, based on materially changed circumstances beyond the 
control of the debtor such as, but not limited to, catastrophic illness, 
divorce, death, or disability.
    (b) Inability to pay. For purposes of this section, in determining 
whether an involuntary or voluntary payment would prevent the debtor 
from meeting essential subsistence expenses (costs incurred for food, 
housing, clothing, transportation, and medical care), the debtor shall 
submit a detailed statement and supporting documents for the debtor, his 
or her spouse, and dependents, indicating:
    (1) Income from all sources;
    (2) Assets;
    (3) Liabilities;
    (4) Number of dependents;
    (5) Expenses for food, housing, clothing, and transportation;
    (6) Child-care or elder-care expenses;
    (7) Medical expenses; and
    (8) Exceptional expenses, if any.
    (c) Alternative payment arrangement. If the debtor requests a 
special review under this section, the debtor shall submit an 
alternative proposed payment schedule and a statement to the FLRA, with 
supporting documents, showing why the current offset, garnishment, or 
repayment schedule imposes an extreme financial hardship on the debtor. 
The FLRA will evaluate the statement and documentation and determine 
whether the current offset, garnishment, or repayment schedule imposes 
extreme financial hardship on the debtor. The FLRA shall notify the 
debtor in writing of such determination, including, if appropriate, a 
revised offset, garnishment, or payment schedule. If the special review 
results in a revised offset, garnishment, or repayment schedule, then 
the FLRA will notify the appropriate agency or other persons about the 
new terms.



Sec.  2418.18  Will the FLRA issue a refund if money is erroneously collected 
on a debt?

    The FLRA shall promptly refund to a debtor any amount collected on 
an FLRA debt when the debt is waived or otherwise found not to be owed 
to the United States, or as otherwise required by law. Refunds under 
this part shall not bear interest unless required by law.



 Subpart C_Procedures for Offset of FLRA Payments to Collect Debts Owed 
                        to Other Federal Agencies



Sec.  2418.19  How do other Federal agencies use the offset process 
to collect debts from payments issued by the FLRA?

    (a) Offset of FLRA payments to collect debts owed to other Federal 
agencies. (1) In most cases, Federal agencies submit eligible debts to 
the Treasury Offset Program to collect delinquent debts from payments 
issued by the FLRA and other Federal agencies, a process known as 
``centralized offset.'' When centralized offset is not available or 
appropriate, any Federal agency may ask the FLRA (when acting as a 
``payment agency'') to collect a debt owed to such agency by offsetting 
funds payable to a debtor by the FLRA, including salary payments issued 
to FLRA employees. This section and Sec.  2418.20 apply when a Federal 
agency asks the FLRA to offset a payment issued by the FLRA to a person 
who owes a debt to the United States.
    (2) This subpart does not apply to FLRA debts. See Sec. Sec.  
2418.10 through 2418.12 for offset procedures applicable to FLRA debts.
    (3) This subpart does not apply to the collection of non-FLRA debts 
through tax refund offset. See 31 CFR 285.2 for tax-refund-offset 
procedures.
    (b) Administrative offset (including salary offset); certification. 
The FLRA will initiate a requested offset only upon receipt of written 
certification from the creditor agency that the debtor owes the past-
due, legally enforceable debt in the amount stated, and that the 
creditor agency has fully complied with all applicable due-process and 
other requirements contained in 31 U.S.C. 3716, 5 U.S.C. 5514, and the 
creditor agency's regulations, as applicable. Offsets will continue 
until the debt is paid in full or otherwise resolved to the satisfaction 
of the creditor agency.
    (c) Where a creditor agency makes requests for offset. Requests for 
offset under this section shall be sent to the Federal Labor Relations 
Authority,

[[Page 431]]

ATTN: Office of the Executive Director, 1400 K Street NW., Washington, 
DC 20424.
    (d) Incomplete certification. The FLRA will return an incomplete 
debt certification to the creditor agency with notice that the creditor 
agency must comply with paragraph (b) of this section before action will 
be taken to collect a debt from a payment issued by the FLRA.
    (e) Review. The FLRA is not authorized to review the merits of the 
creditor agency's determination with respect to the amount or validity 
of the debt certified by the creditor agency.
    (f) When the FLRA will not comply with offset request. The FLRA will 
comply with the offset request of another agency unless the FLRA 
determines that the offset would not be in the best interests of the 
United States, or would otherwise be contrary to law.
    (g) Multiple debts. When two or more creditor agencies are seeking 
offsets from payments made to the same person, or when two or more debts 
are owed to a single creditor agency, the FLRA may determine the order 
in which the debts will be collected or whether one or more debts should 
be collected by offset simultaneously.
    (h) Priority of debts owed to FLRA. For purposes of this section, 
debts owed to the FLRA generally take precedence over debts owed to 
other agencies. The FLRA may determine whether to pay debts owed to 
other agencies before paying a debt owed to the FLRA. The FLRA will 
determine the order in which the debts will be collected based on the 
best interests of the United States.



Sec.  2418.20  What does the FLRA do upon receipt of a request to offset 
the salary of an FLRA employee to collect a debt owed by the employee 
to another Federal agency?

    (a) Notice to the FLRA employee. When the FLRA receives proper 
certification of a debt owed by one of its employees, the FLRA will 
begin deductions from the employee's pay at the next officially 
established pay period. The FLRA will send a written notice to the 
employee indicating that a certified debt claim has been received from 
the creditor agency, the amount of the debt that the creditor agency 
claims is owed, the date deductions from salary will begin, and the 
amount of such deductions.
    (b) Amount of deductions from FLRA employee's salary. The amount 
deducted under Sec.  2418.19(b) will be the lesser of the amount of the 
debt certified by the creditor agency or an amount up to 15% of the 
debtor's disposable pay. Deductions shall continue until the FLRA knows 
that the debt is paid in full or until otherwise instructed by the 
creditor agency. Alternatively, the amount offset may be an amount that 
the debtor and the creditor agency agree upon in writing. See Sec.  
2418.12(g) (salary-offset process).
    (c) When the debtor is no longer employed by the FLRA--(1) Offset of 
final and subsequent payments. If an FLRA employee retires or resigns or 
if his or her employment otherwise ends before collection of the debt is 
complete, then the FLRA will continue to offset, under 31 U.S.C. 3716, 
up to 100% of an employee's subsequent payments until the debt is paid 
or otherwise resolved. Such payments include a debtor's final salary 
payment, lump-sum leave payment, and other payments payable to the 
debtor by the FLRA. See 31 U.S.C. 3716 and 5 CFR 550.1104(l) and 
550.1104(m).
    (2) Notice to the creditor agency. If the employee is separated from 
the FLRA before the debt is paid in full, then the FLRA will certify to 
the creditor agency the total amount of its collection. If the FLRA is 
aware that the employee is entitled to payments from the Civil Service 
Retirement and Disability Fund, Federal Employee Retirement System, or 
other similar payments, then the FLRA will provide written notice to the 
agency making such payments that the debtor owes a debt (including the 
amount) and that the provisions of 5 CFR 550.1109 have been fully 
complied with. The creditor agency is responsible for submitting a 
certified claim to the agency responsible for making such payments 
before collection may begin. Generally, creditor agencies will collect 
such monies through the Treasury Offset Program as described in Sec.  
2418.9(c).

[[Page 432]]

    (3) Notice to the debtor. The FLRA will provide to the debtor a copy 
of any notices sent to the creditor agency under paragraph (c)(2) of 
this section.
    (d) When the debtor transfers to another Federal agency--(1) Notice 
to the creditor agency. If the debtor transfers to another Federal 
agency before the debt is paid in full, then the FLRA will notify the 
creditor agency and will certify the total amount of its collection on 
the debt. The FLRA will provide a copy of the certification to the 
creditor agency. The creditor agency is responsible for submitting a 
certified claim to the debtor's new employing agency before collection 
may begin.
    (2) Notice to the debtor. The FLRA will provide to the debtor a copy 
of any notices and certifications sent to the creditor agency under 
paragraph (d)(1) of this section.
    (e) Request for hearing official. The FLRA will provide a hearing 
official upon the creditor agency's request with respect to an FLRA 
employee. See 5 CFR 550.1107(a).





Sec. Appendix A to Part 2418--Waiving Claims Against FLRA Employees for 
                           Erroneous Payments

Date: May 1, 2015.
Subject: Waiving Claims Against FLRA Employees for Erroneous Payments.

                               1. Purpose

    This appendix establishes the FLRA's policies and procedures for 
waiving claims by the Government against an employee for erroneous 
payments of: (1) Pay and allowances (e.g., health and life insurance) 
and (2) travel, transportation, and relocation expenses and allowances.

                              2. Background

    a. 5 U.S.C. 5584 authorizes the waiver of claims by the United 
States in whole or in part against an employee arising out of erroneous 
payments of pay and allowances, travel, transportation, and relocation 
expenses and allowances. A waiver may be considered when collection of 
the claim would be against equity and good conscience and not in the 
best interest of the United States, provided that there does not exist, 
in connection with the claim, an indication of fraud, misrepresentation, 
fault, or lack of good faith on the part of the employee or any other 
person having an interest in obtaining a waiver of the claim.
    b. The General Accounting Office Act of 1996 (Pub. L. 104-316), 
Title I, section 103(d), enacted October 19, 1996, amended 5 U.S.C. 5584 
by transferring the authority to waive claims for erroneous payments 
exceeding $1,500 from the Comptroller General of the United States to 
the Office of Management and Budget (OMB). OMB subsequently redelegated 
this waiver authority to the executive agency that made the erroneous 
payment. The authority to waive claims not exceeding $1,500, which was 
vested in the head of each agency prior to the enactment of Public Law 
104-316, was unaffected by the Act.
    c. 5 U.S.C. 5514 authorizes the head of each agency, upon a 
determination that an employee is indebted to the United States for 
debts to which the United States is entitled to be repaid at the time of 
the determination, to deduct up to 15%, or a greater amount if agreed to 
by the employee or a higher deduction has been ordered by a court under 
section 124 of Public Law 97-276 (96 Stat. 1195), from the employee's 
pay at officially established pay intervals in order to repay the debt.

                              3. Delegation

    The Executive Director is delegated the authority to waive, in whole 
or in part, a claim of the United States against an employee for an 
erroneous payment of pay and allowances, travel, transportation, and 
relocation expenses and allowances, in accordance with the limitations 
and standards in 5 U.S.C. 5584.

                           4. Responsibilities

    The Office of the Executive Director shall:
    (1) Promptly notify an employee upon discovery of an erroneous 
payment to that employee;
    (2) Promptly act to collect the erroneous overpayment, following 
established debt-collection policies and procedures;
    (3) Establish time frames for employees to request a waiver in 
writing and for the Executive Director to review the waiver request. 
These time frames must take into consideration the responsibilities of 
the United States to take prompt action to pursue enforced collection on 
overdue debts, which may arise from erroneous payments.
    (4) Notify employees whose requests for waiver of claims are denied 
in whole or in part of the basis for the denial.
    (5) Pay a refund when appropriate if a waiver is granted;
    (6) Fulfill all labor-relations responsibilities when implementing 
the provisions of this appendix; and

[[Page 433]]

    (7) Fulfill any other responsibility of the agency imposed by 5 
U.S.C. 5584 or other applicable laws and regulations.
    Additionally, the Office of the Executive Director may initiate a 
waiver application during the processing of a claim under 5 CFR part 
2418.

                        5. Reporting Requirements

    a. The FLRA shall maintain a register of waiver actions. The 
register shall cover each fiscal year and be prepared by December 31 of 
each year for the preceding fiscal year. The register shall contain the 
following information:
    (1) The total amount waived by the FLRA;
    (2) The number and dollar amount of waiver applications granted in 
full;
    (3) The number and dollar amount of waiver applications granted in 
part and denied in part, and the dollar amount of each;
    (4) The number and dollar amount of waiver applications denied in 
their entirety; and
    (5) The number of waiver applications referred to the Executive 
Director for initial action.
    b. The FLRA shall retain a written record of each waiver action for 
6 years and 3 months. At a minimum, the written record shall contain:
    (1) The FLRA's summary of the events surrounding the erroneous 
payment;
    (2) Any written comments submitted by the employee from whom 
collection is sought;
    (3) An account of the waiver action taken and the reasons for such 
action; and
    (4) Other pertinent information such as any action taken to refund 
amounts repaid.

                     6. Effect of Request for Waiver

    A request for a waiver of a claim shall not affect an employee's 
opportunity under 5 U.S.C. 5514(a)(2)(D) for a hearing on the 
determination of the agency concerning the existence or the amount of 
the debt, or the terms of the repayment schedule. A request by an 
employee for a hearing under 5 U.S.C. 5514(a)(2)(D) shall not affect an 
employee's right to request a waiver of the claim. The determination 
whether to waive a claim may be made at the discretion of the deciding 
official either before or after a final decision is rendered pursuant to 
5 U.S.C. 5514(a)(2)(D) concerning the existence or the amount of the 
debt, or the terms of the repayment schedule.

                 7. Guidelines for Determining Requests

    a. A request for a waiver shall not be granted if the deciding 
official determines there exists, in connection with the claim, an 
indication of fraud, misrepresentation, fault, or lack of good faith on 
the part of the employee or any other person having an interest in 
obtaining a waiver of the claim. There are no exceptions to this rule 
for financial hardship or otherwise.
    (1) ``Fault'' exists if, in light of all the circumstances, it is 
determined that the employee knew or should have known that an error 
existed, but failed to take action to have it corrected. Fault can 
derive from an act or a failure to act. Unlike fraud, fault does not 
require a deliberate intent to deceive. Whether an employee should have 
known about an error in pay is determined from the perspective of a 
reasonable person. Pertinent considerations in finding fault include 
whether:
    (a) The payment resulted from the employee's incorrect, but not 
fraudulent, statement that the employee should have known was incorrect;
    (b) The payment resulted from the employee's failure to disclose 
material facts that were in the employee's possession and that the 
employee should have known to be material; or
    (c) The employee accepted a payment, that the employee knew or 
should have known to be erroneous.
    (2) Every case must be examined in light of its particular facts. 
For example, where an employee is promoted to a higher grade but the 
step level for the employee's new grade is miscalculated, it may be 
appropriate to conclude that there is no fault on the employee's part 
because employees are not typically expected to be aware of and 
understand the rules regarding determination of step level upon 
promotion. On the other hand, a different conclusion as to fault 
potentially may be reached if the employee in question is a personnel 
specialist or an attorney who concentrates on personnel law.
    b. If the deciding official finds an indication of fraud, 
misrepresentation, fault, or lack of good faith on the part of the 
employee or any other person having an interest in obtaining a waiver of 
the claim, then the request for a waiver must be denied.
    c. If the deciding official finds no indication of fraud, 
misrepresentation, fault, or lack of good faith on the part of the 
employee or any other person having an interest in obtaining a waiver of 
the claim, then the employee is not automatically entitled to a waiver. 
Before a waiver can be granted, the deciding official must also 
determine that collection of the claim against an employee would be 
against equity and good conscience and not in the best interests of the 
United States. Factors to consider when determining whether collection 
of a claim against an employee would be against equity and good 
conscience and not in the best interests of the United States include, 
but are not limited to:
    (1) Whether collection of the claim would cause serious financial 
hardship to the employee from whom collection is sought.

[[Page 434]]

    (2) Whether, because of the erroneous payment, the employee either 
has relinquished a valuable right or changed positions for the worse, 
regardless of the employee's financial circumstances.
    (a) To establish that a valuable right has been relinquished, it 
must be shown that the right was, in fact, valuable; that it cannot be 
regained; and that the action was based chiefly or solely on reliance on 
the overpayment.
    (b) To establish that the employee's position has changed for the 
worse, it must be shown that the decision would not have been made but 
for the overpayment, and that the decision resulted in a loss.
    (c) An example of a ``detrimental reliance'' would be a decision to 
sign a lease for a more expensive apartment based chiefly or solely upon 
reliance on an erroneous calculation of salary, and the funds spent for 
rent cannot be recovered.
    (3) The cost of collecting the claim equals or exceeds the amount of 
the claim;
    (4) The time elapsed between the erroneous payment and discovery of 
the error and notification of the employee;
    (5) Whether failure to make restitution would result in unfair gain 
to the employee;
    (6) Whether recovery of the claim would be unconscionable under the 
circumstances.
    d. The burden is on the employee to demonstrate that collection of 
the claim would be against equity and good conscience and not in the 
best interest of the United States.

                             8. Authorities

    a. 5 U.S.C. 5584, ``Claims for Overpayment of Pay and Allowances, 
and of Travel, Transportation and Relocation Expenses and Allowances.''
    b. 31 U.S.C. 3711, ``Collection and Compromise.''
    c. 31 U.S.C. 3716, ``Administrative Offset.''
    d. 31 U.S.C. 3717, ``Interest and Penalty on Claims.''
    e. 5 CFR part 550, subpart K, ``Collection by Offset from Indebted 
Government Employees.''
    f. 31 CFR part 5, subpart B, ``Salary Offset.''
    g. Determination with Respect to Transfer of Functions Pursuant to 
Public Law 104-316, OMB, December 17, 1996.

                             9. Cancellation

    FLRA Internal Regulation 2790, dated December 29, 1986, is 
superseded.

[[Page 435]]



 SUBCHAPTER C_FEDERAL LABOR RELATIONS AUTHORITY AND GENERAL COUNSEL OF 
                  THE FEDERAL LABOR RELATIONS AUTHORITY





PART 2420_PURPOSE AND SCOPE--Table of Contents



    Authority: 3 U.S.C. 431; 5 U.S.C. 7134.



Sec.  2420.1  Purpose and scope.

    The regulations contained in this subchapter are designed to 
implement the provisions of chapter 71 of title 5 and, where applicable, 
section 431 of title 3 of the United States Code. They prescribe the 
procedures, basic principles or criteria under which the Federal Labor 
Relations Authority or the General Counsel of the Federal Labor 
Relations Authority, as applicable, will:
    (a) Determine the appropriateness of units for labor organization 
representation under 5 U.S.C. 7112;
    (b) Supervise or conduct elections to determine whether a labor 
organization has been selected as an exclusive representative by a 
majority of the employees in an appropriate unit and otherwise 
administer the provisions of 5 U.S.C. 7111 relating to the according of 
exclusive recognition to labor organizations;
    (c) Resolve issues relating to the granting of national consultation 
rights under 5 U.S.C. 7113;
    (d) Resolve issues relating to determining compelling need for 
agency rules and regulations under 5 U.S.C. 7117(b);
    (e) Resolve issues relating to the duty to bargain in good faith 
under 5 U.S.C. 7117(c);
    (f) Resolve issues relating to the granting of consultation rights 
with respect to conditions of employment under 5 U.S.C. 7117(d);
    (g) Conduct hearings and resolve complaints of unfair labor 
practices under 5 U.S.C. 7118;
    (h) Resolve exceptions to arbitrators' awards under 5 U.S.C. 7122; 
and
    (i) Take such other actions as are necessary and appropriate 
effectively to administer the provisions of chapter 71 of title 5 of the 
United States Code.

[45 FR 3497, Jan. 17, 1980, as amended at 63 FR 46158, Aug. 31, 1998]



PART 2421_MEANING OF TERMS AS USED IN THIS SUBCHAPTER--Table of Contents



Sec.
2421.1 Federal Service Labor-Management Relations Statute.
2421.2 Terms defined in 5 U.S.C. 7103(a); General Counsel; Assistant 
          Secretary.
2421.3 National consultation rights; consultation rights on Government-
          wide rules or regulations; exclusive recognition; unfair labor 
          practices.
2421.4 Activity.
2421.5 Primary national subdivision.
2421.6 Regional Director.
2421.7 Executive Director.
2421.8 Hearing Officer.
2421.9 Administrative Law Judge.
2421.10 Chief Administrative Law Judge.
2421.11 Party.
2421.12 Intervenor.
2421.13 Certification.
2421.14 Appropriate unit.
2421.15 Secret ballot.
2421.16 Showing of interest.
2421.17 Regular and substantially equivalent employment.
2421.18 Petitioner.
2421.19 Eligibility period.
2421.20 Election agreement.
2421.21 Affected by issues raised.
2421.22 Determinative challenged ballots.

    Authority: 3 U.S.C. 431; 5 U.S.C. 7134.

    Source: 45 FR 3497, Jan. 17, 1980, unless otherwise noted.



Sec.  2421.1  Federal Service Labor-Management Relations Statute.

    The term Federal Service Labor-Management Relations Statute means 
chapter 71 of title 5 of the United States Code.



Sec.  2421.2  Terms defined in 5 U.S.C. 7103(a); General Counsel; 
Assistant Secretary.

    (a) The terms person, employee, agency, labor organization, dues, 
Authority, Panel, collective bargaining agreement, grievance, 
supervisor, management official, collective bargaining, confidential

[[Page 436]]

employee, conditions of employment, professional employee, exclusive 
representative, firefighter, and United States, as used in this 
subchapter shall have the meanings set forth in 5 U.S.C. 7103(a). The 
terms covered employee, employee, employing office, and agency, when 
used in connection with the Presidential and Executive Office 
Accountability Act, 3 U.S.C. 401 et seq., shall have the meaning set out 
in 3 U.S.C. 401(b), and 431(b) and (d)(2). Employees who are employed in 
the eight offices listed in 3 U.S.C. 431(d)(2) shall be excluded from 
coverage if the Authority determines that such exclusion is required 
because of a conflict of interest, an appearance of a conflict of 
interest, or the President's or Vice President's constitutional 
responsibilities, in addition to the exemptions currently set forth in 5 
U.S.C. 7103(a).
    (b) The term General Counsel means the General Counsel of the 
Authority.
    (c) The term Assistant Secretary means the Assistant Secretary of 
Labor for Labor-Management Relations.

[45 FR 3497, Jan. 17, 1980, as amended at 63 FR 46158, Aug. 31, 1998]



Sec.  2421.3  National consultation rights; consultation rights 
on Government-wide rules or regulations; exclusive recognition; 
unfair labor practices.

    (a) National consultation rights has the meaning as set forth in 5 
U.S.C. 7113;
    (b) Consultation rights on Government-wide rules or regulations has 
the meaning as set forth in 5 U.S.C. 7117(d);
    (c) Exclusive recognition has the meaning as set forth in 5 U.S.C. 
7111; and
    (d) Unfair labor practices has the meaning as set forth in 5 U.S.C. 
7116.



Sec.  2421.4  Activity.

    Activity means any facility, organizational entity, or geographical 
subdivision or combination thereof, of any agency.



Sec.  2421.5  Primary national subdivision.

    Primary national subdivision of an agency means a first-level 
organizational segment which has functions national in scope that are 
implemented in field activities.



Sec.  2421.6  Regional Director.

    Regional Director means the Director of a region of the Authority 
with geographical boundaries as fixed by the Authority.



Sec.  2421.7  Executive Director.

    Executive Director means the Executive Director of the Authority.



Sec.  2421.8  Hearing Officer.

    Hearing Officer means the individual designated to conduct a hearing 
involving a question concerning the appropriateness of a unit or such 
other matters as may be assigned.



Sec.  2421.9  Administrative Law Judge.

    Administrative Law Judge means the Chief Administrative Law Judge or 
any Administrative Law Judge designated by the Chief Administrative Law 
Judge to conduct a hearing in cases under 5 U.S.C. 7116, and such other 
matters as may be assigned.



Sec.  2421.10  Chief Administrative Law Judge.

    Chief Administrative Law Judge means the Chief Administrative Law 
Judge of the Authority.



Sec.  2421.11  Party.

    Party means:
    (a) Any labor organization, employing agency or activity or 
individual filing a charge, petition, or request;
    (b) Any labor organization or agency or activity
    (1) Named as
    (i) A charged party in a charge,
    (ii) A respondent in a complaint, or
    (iii) An employing agency or activity or an incumbent labor 
organization in a petition;
    (2) Whose intervention in a proceeding has been permitted or 
directed by the Authority; or
    (3) Who participated as a party
    (i) In a matter that was decided by an agency head under 5 U.S.C. 
7117, or
    (ii) In a matter where the award of an arbitrator was issued; and
    (c) The General Counsel, or the General Counsel's designated 
representative, in appropriate proceedings.

[60 FR 67291, Dec. 29, 1995]

[[Page 437]]



Sec.  2421.12  Intervenor.

    Intervenor means a party in a proceeding whose intervention has been 
permitted or directed by the Authority, its agents or representatives.



Sec.  2421.13  Certification.

    Certification means the determination by the Authority, its agents 
or representatives, of the results of an election, or the results of a 
petition to consolidate existing exclusively recognized units.



Sec.  2421.14  Appropriate unit.

    Appropriate unit means that grouping of employees found to be 
appropriate for purposes of exclusive recognition under 5 U.S.C. 7111, 
and for purposes of allotments to representatives under 5 U.S.C. 
7115(c), and consistent with the provisions of 5 U.S.C. 7112. In 
determining an appropriate unit in a proceeding under part 2422 of this 
Chapter, for the eight offices listed in 3 U.S.C. 431(d)(2), employees 
shall be excluded from the unit if it is determined that such exclusion 
is required because of a conflict of interest or appearance of a 
conflict of interest or because of the President's or Vice President's 
constitutional responsibilities, in addition to the standards set out in 
5 U.S.C. 7112.

[63 FR 46158, Aug. 31, 1998]



Sec.  2421.15  Secret ballot.

    Secret ballot means the expression by ballot, voting machine or 
otherwise, but in no event by proxy, of a choice with respect to any 
election or vote taken upon any matter, which is cast in such a manner 
that the person expressing such choice cannot be identified with the 
choice expressed, except in that instance in which any determinative 
challenged ballot is opened.



Sec.  2421.16  Showing of interest.

    Showing of interest means evidence of membership in a labor 
organization; employees' signed and dated authorization cards or 
petitions authorizing a labor organization to represent them for 
purposes of exclusive recognition; allotment of dues forms executed by 
an employee and the labor organization's authorized official; current 
dues records; an existing or recently expired agreement; current 
exclusive recognition or certification; employees' signed and dated 
petitions or cards indicating that they no longer desire to be 
represented for the purposes of exclusive recognition by the currently 
recognized or certified labor organization; employees' signed and dated 
petitions or cards indicating a desire that an election be held on a 
proposed consolidation of units; or other evidence approved by the 
Authority.



Sec.  2421.17  Regular and substantially equivalent employment.

    Regular and substantially equivalent employment means employment 
that entails substantially the same amount of work, rate of pay, hours, 
working conditions, location of work, kind of work, and seniority 
rights, if any, of an employee prior to the cessation of employment in 
an agency because of any unfair labor practice under 5 U.S.C. 7116.



Sec.  2421.18  Petitioner.

    Petitioner means the party filing a petition under part 2422 of this 
subchapter.

[60 FR 67291, Dec. 29, 1995]



Sec.  2421.19  Eligibility period.

    Eligibility period means the payroll period during which an employee 
must be in an employment status with an agency or activity in order to 
be eligible to vote in a representation election under part 2422 of this 
subchapter.

[60 FR 67291, Dec. 29, 1995]



Sec.  2421.20  Election agreement.

    Election agreement means an agreement under part 2422 of this 
subchapter signed by all the parties, and approved by the Regional 
Director, concerning the details and procedures of a representation 
election in an appropriate unit.

[60 FR 67291, Dec. 29, 1995]



Sec.  2421.21  Affected by issues raised.

    The phrase affected by issues raised, as used in part 2422, should 
be construed broadly to include parties and other

[[Page 438]]

labor organizations, or agencies or activities that have a connection to 
employees affected by, or questions presented in, a proceeding.

[60 FR 67291, Dec. 29, 1995]



Sec.  2421.22  Determinative challenged ballots.

    Determinative challenged ballots are challenges that are unresolved 
prior to the tally and sufficient in number after the tally to affect 
the results of the election.

[60 FR 67291, Dec. 29, 1995]



PART 2422_REPRESENTATION PROCEEDINGS--Table of Contents



Sec.
2422.1 What is your purpose for filing a petition?
2422.2 Who may file a petition?
2422.3 What information should you include in your petition?
2422.4 What service requirements must you meet when filing a petition?
2422.5 Where do you file petitions?
2422.6 How are parties notified of the filing of a petition?
2422.7 Will an activity or agency post a notice of filing of a petition?
2422.8 What is required to file an intervention or cross-petition?
2422.9 How is the adequacy of a showing of interest determined?
2422.10 How do you challenge the validity of a showing of interest?
2422.11 How do you challenge the status of a labor organization?
2422.12 What circumstances does the Region consider to determine whether 
          your petition is timely filed?
2422.13 How are issues raised by your petition resolved?
2422.14 What is the effect of your withdrawal or the Regional Director's 
          dismissal of a petition?
2422.15 Do parties have a duty to provide information and cooperate 
          after a petition is filed?
2422.16 May parties enter into election agreements, and if they do not 
          will the Regional Director direct an election?
2422.17 What are a notice of hearing and prehearing conference?
2422.18 What is the purpose of a representation hearing and what 
          procedures are followed?
2422.19 When is it appropriate for a party to file a motion at a 
          representation hearing?
2422.20 What rights do parties have at a hearing?
2422.21 What are the duties and powers of a Hearing Officer?
2422.22 What are objections and exceptions concerning the conduct of the 
          hearing?
2422.23 What election procedures are followed?
2422.24 What are challenged ballots?
2422.25 When does the Region tally the ballots?
2422.26 How are objections to the election processed?
2422.27 How does the Region address determinative challenged ballots and 
          objections?
2422.28 When is a runoff election required?
2422.29 How does the Region address an inconclusive election?
2422.30 When does a Regional Director investigate a petition, issue 
          notices of hearings, take actions, and issue Decisions and 
          Orders?
2422.31 When do you file an application for review of a Regional 
          Director Decision and Order?
2422.32 When does a Regional Director issue a certification or a 
          revocation of certification?
2422.33 Relief under part 2423 of this chapter.
2422.34 What are the parties' rights and obligations when a 
          representation proceeding is pending?

    Authority: 3 U.S.C. 431; 5 U.S.C. 7134.

    Source: 77 FR 37752, June 25, 2012, unless otherwise noted.



Sec.  2422.1  What is your purpose for filing a petition?

    You, the petitioner, may file a petition for the following purposes:
    (a) Elections or eligibility for dues allotment. To request:
    (1)(i) An election to determine whether employees in an appropriate 
unit wish to be represented for the purpose of collective bargaining by 
an exclusive representative, and/or
    (ii) A determination of eligibility for dues allotment in an 
appropriate unit without an exclusive representative; or
    (2) An election to determine whether employees in a unit no longer 
wish to be represented for the purpose of collective bargaining by an 
exclusive representative.
    (3) Petitions under this subsection must be accompanied by an 
appropriate showing of interest.
    (b) Clarification or amendment. To clarify, and/or amend:
    (1) A recognition or certification then in effect; and/or

[[Page 439]]

    (2) Any other matter relating to representation.
    (c) Consolidation. To consolidate two or more units, with or without 
an election, in an agency where a labor organization is the exclusive 
representative.



Sec.  2422.2  Who may file a petition?

    An individual; a labor organization; two or more labor organizations 
acting as a joint-petitioner; an individual acting on behalf of any 
employee(s); an agency or activity; or a combination of the above may 
file a representation petition. But,
    (a) Only a labor organization may file a petition under Sec.  
2422.1(a)(1);
    (b) Only an individual may file a petition under Sec.  2422.1(a)(2); 
and
    (c) Only an agency or a labor organization may file a petition under 
Sec.  2422.1(b) or (c).



Sec.  2422.3  What information should you include in your petition?

    (a) You must file a petition either in writing with your signature 
or electronically using the eFiling system on the FLRA's Web site at 
www.flra.gov. Your petition must provide the following information on a 
form designated by the Authority, or on a substantially similar form, or 
electronically using the eFiling system on the FLRA's Web site at 
www.flra.gov:
    (1) The name and mailing address for each agency or activity 
affected by issues raised in the petition, including street number, 
city, state and zip code.
    (2) The name, mailing address and work telephone number, fax number 
and email address (if known) of the contact person for each agency or 
activity affected by issues raised in the petition.
    (3) The name and mailing address for each labor organization 
affected by issues raised in the petition, including street number, 
city, state and zip code. If a labor organization is affiliated with a 
national organization, the local designation and the national 
affiliation should both be included. If a labor organization is an 
exclusive representative of any of the employees affected by issues 
raised in the petition, the date of the recognition or certification and 
the date any collective bargaining agreement covering the unit will 
expire or when the most recent agreement did expire should be included, 
if known.
    (4) The name, mailing address and work telephone number, fax number 
and email address (if known) of the contact person for each labor 
organization affected by issues raised in the petition.
    (5) Your name and mailing address, including street number, city, 
state and zip code, and fax number and email address. If you are a labor 
organization affiliated with a national organization, the local 
designation and the national affiliation should both be included.
    (6) A description of the unit(s) affected by issues raised in the 
petition. The description should generally indicate the geographic 
locations and the classifications of the employees included (or sought 
to be included) in, and excluded (or sought to be excluded) from, the 
unit.
    (7) The approximate number of employees in the unit(s) affected by 
issues raised in the petition.
    (8) A clear and concise statement of the issues raised by the 
petition and the results the petitioner seeks.
    (9) A declaration by the person signing the petition, under the 
penalties of the Criminal Code (18 U.S.C. 1001), that the contents of 
the petition are true and correct to the best of the person's knowledge 
and belief.
    (10) The title, mailing address and telephone number of the person 
filing the petition.
    (b) Certification of compliance with 5 U.S.C. 7111(e). A labor 
organization/petitioner complies with 5 U.S.C. 7111(e) by submitting to 
the agency or activity and to the Department of Labor a roster of its 
officers and representatives, a copy of its constitution and bylaws, and 
a statement of its objectives. By signing the petition form, the labor 
organization/petitioner certifies that it has submitted these documents 
to the activity or agency and to the Department of Labor.
    (c) Showing of interest supporting a representation petition 
(defined at 5 U.S.C. 2421.16). When filing a petition requiring a 
showing of interest, you must:
    (1) So indicate on the petition form;

[[Page 440]]

    (2) Submit with the petition a showing of interest of not less than 
thirty percent (30%) of the employees in the unit involved in the 
petition; and
    (3) Include an alphabetical list of the names constituting the 
showing of interest.
    (d) Petition seeking dues allotment. When there is no exclusive 
representative, a petition seeking certification for dues allotment must 
be accompanied by a showing of membership in the petitioner of not less 
than ten percent (10%) of the employees in the unit claimed to be 
appropriate. An alphabetical list of names constituting the showing of 
membership must be submitted.



Sec.  2422.4  What service requirements must you meet when filing a petition?

    You must serve every petition, motion, brief, request, challenge, 
written objection, or application for review on all parties affected by 
issues raised in the filing. The service must include all supporting 
documentation, with the exceptions of a showing of interest, evidence 
supporting challenges to the validity of a showing of interest, and 
evidence supporting objections to an election. You must submit a 
statement of service to the Regional Director.



Sec.  2422.5  Where do you file petitions?

    (a) Where to file. You must file a petition with the Regional 
Director for the region in which the unit or employee(s) affected by 
issues raised in the petition are located. If the unit(s) or employees 
are located in two or more regions of the Authority, you must file the 
petitions with the Regional Director for the region where the 
headquarters of the agency or activity is located.
    (b) Method of filing. You may file a petition with the Regional 
Director in person or by commercial delivery, first class mail, 
facsimile, certified mail, or electronically through use of the eFiling 
system on the FLRA's Web site at www.flra.gov. If you file 
electronically or by facsimile transmission you are not required to file 
an original copy of the petition with the Region. You assume 
responsibility for the Regional Director's receipt of a petition.
    (c) Date of filing. When a Regional Director receives a petition, it 
is deemed filed. A petition filed during business hours by facsimile or 
electronic means is deemed received on the business day on which it is 
received (either by the Regional Office fax machine or by the eFiling 
system), until midnight local time in the Region where it is filed. But 
when a Region receives a petition by any other method after the close of 
business day, it will be deemed received and docketed on the next 
business day. The business hours for each of the Regional Offices are 
set forth at http://www.flra.gov.



Sec.  2422.6  How are parties notified of the filing of a petition?

    (a) Notification to parties. After you file a petition the Regional 
Director will notify any labor organization, agency, or activity 
identified as being affected by issues raised by the petition, that a 
petition has been filed. The Regional Director will also make reasonable 
efforts to identify and notify any other party affected by the issues 
raised by the petition.
    (b) Contents of the notification. The notification will inform the 
labor organization, agency, or activity of:
    (1) Your name (the petitioner);
    (2) The description of the unit(s) or employees affected by issues 
raised in the petition; and,
    (3) A statement that all affected parties should advise the Regional 
Director in writing of their interest in the issues raised in the 
petition.



Sec.  2422.7  Will an activity or agency post a notice of filing of a petition?

    (a) Posting notice of petition. After you file a petition, when 
appropriate, the Regional Director will direct the agency or activity to 
post copies of a notice to all employees in places where notices are 
normally posted for the employees affected by issues raised in the 
petition and/or distribute copies of a notice in a manner by which 
notices are normally distributed.
    (b) Contents of notice. The notice must advise affected employees 
about the petition.

[[Page 441]]

    (c) Duration of notice. The notice must be conspicuously posted for 
a period of ten (10) days and must not be altered, defaced, or covered 
by other material.



Sec.  2422.8  What is required to file an intervention or cross-petition?

    (a) Cross-petitions. A cross-petition is a petition that involves 
any employees in a unit covered by a pending representation petition. If 
you file a cross-petition, it must be filed under the requirements of 
this subpart.
    (b) Intervention requests and cross-petitions. (1) You may file a 
request to intervene, along with any necessary showing of interest, with 
either the Regional Director or the Hearing Officer. This must be filed 
either in person, or by commercial delivery, first-class mail, certified 
mail or facsimile. You must file a request to intervene before the 
hearing opens, unless you show good cause for granting an extension. If 
no hearing is held, you must file a request to intervene before action 
is taken under Sec.  2422.30.
    (2) You may file a cross-petition, along with any necessary showing 
of interest, with either the Regional Director or the Hearing Officer. 
This must be filed electronically through the use of the eFiling system 
on the FLRA's Web site at www.flra.gov or, in person, by commercial 
delivery, first-class mail, certified mail or facsimile. Any cross-
petition must be filed before the hearing opens, unless you show good 
cause for granting an extension. If no hearing is held, you must file a 
cross-petition before action is taken under Sec.  2422.30.
    (c) Labor organization intervention requests. Except for incumbent 
intervenors, a labor organization seeking to intervene must submit a 
statement that it has complied with 5 U.S.C. 7111(e) and one of the 
following:
    (1) A showing of interest of ten percent (10%) or more of the 
employees in the unit covered by a petition seeking an election, with an 
alphabetical list of the names of the employees establishing the showing 
of interest; or
    (2) A current or recently expired collective bargaining agreement 
covering any of the employees in the unit affected by issues raised in 
the petition; or
    (3) Evidence that it is or was, before a reorganization, the 
recognized or certified exclusive representative of any of the employees 
affected by issues raised in the petition.
    (d) Incumbent. An incumbent exclusive representative, without regard 
to the requirements of paragraph (c) of this section, will be considered 
a party in any representation proceeding raising issues that affect 
employees the incumbent represents, unless it serves the Regional 
Director with a written disclaimer of any representation interest in the 
claimed unit.
    (e) Employing agency. An agency or activity will be considered a 
party if any of its employees are affected by issues raised in the 
petition.
    (f) Agency or activity intervention. An agency or activity seeking 
to intervene in any representation proceeding must submit evidence that 
one or more employees of the agency or activity may be affected by 
issues raised in the petition.



Sec.  2422.9  How is the adequacy of a showing of interest determined?

    (a) Adequacy. Adequacy of a showing of interest refers to the 
percentage of employees in the unit involved as required by Sec. Sec.  
2422.3(c) and (d) and 2422.8(c)(1).
    (b) Regional Director investigation of showing of interest and 
Decision and Order. The Regional Director will conduct an investigation 
if deemed appropriate. A Regional Director's determination that the 
showing of interest is adequate is final and binding and not subject to 
collateral attack at a representation hearing or on appeal to the 
Authority. If the Regional Director determines that a showing of 
interest is inadequate, the Regional Director will issue a Decision and 
Order dismissing the petition, or denying a request for intervention.



Sec.  2422.10  How do you challenge the validity of a showing of interest?

    (a) Validity. Validity questions are raised by challenges to a 
showing of interest on grounds other than adequacy.

[[Page 442]]

    (b) Validity challenge. The Regional Director or any party may 
challenge the validity of a showing of interest.
    (c) When and where validity challenges may be filed. Your challenges 
to the validity of a showing of interest must be in writing and filed 
with the Regional Director or the Hearing Officer before the hearing 
opens, unless you show good cause for granting an extension. If no 
hearing is held, you must file challenges to the validity of a showing 
of interest before action is taken under Sec.  2422.30.
    (d) Contents of validity challenges. Your challenges to the validity 
of a showing of interest must be supported with evidence.
    (e) Regional Director investigation and Decision and Order. The 
Regional Director will conduct an investigation if deemed appropriate. 
The Regional Director's determination that a showing of interest is 
valid is final and binding and is not subject to collateral attack or 
appeal to the Authority. If the Regional Director finds that the showing 
of interest is not valid, the Regional Director will issue a Decision 
and Order dismissing the petition or denying the request to intervene.



Sec.  2422.11  How do you challenge the status of a labor organization?

    (a) Basis of challenge to labor organization status. Non-compliance 
with 5 U.S.C. 7103(a)(4) is the only basis on which you may challenge 
the status of a labor organization.
    (b) Format and time for filing a challenge. If you file a challenge 
to the status of a labor organization involved in the processing of a 
petition you must do so in writing to the Regional Director or the 
Hearing Officer before the hearing opens, unless you show good cause for 
granting an extension. If no hearing is held, you must file challenges 
before action is taken under Sec.  2422.30.



Sec.  2422.12  What circumstances does the Region consider to determine 
whether your petition is timely filed?

    (a) Election bar. Where there is no certified exclusive 
representative, a petition seeking an election will not be considered 
timely if filed within twelve (12) months of a valid election involving 
the same unit or a subdivision of the same unit.
    (b) Certification bar. Where there is a certified exclusive 
representative of employees, a petition seeking an election will not be 
considered timely if filed within twelve (12) months after the 
certification of the exclusive representative of the employees in an 
appropriate unit. If a collective bargaining agreement covering the 
claimed unit is pending agency head review under 5 U.S.C. 7114(c) or is 
in effect, paragraphs (c), (d), or (e) of this section apply.
    (c) Bar during 5 U.S.C. 7114(c) agency head review. A petition 
seeking an election will not be considered timely if filed during the 
period of agency head review under 5 U.S.C. 7114(c). This bar expires 
upon either the passage of thirty (30) days absent agency head action, 
or upon the date of any timely agency head action.
    (d) Contract bar where the contract is for three (3) years or less. 
Where a collective bargaining agreement is in effect covering the 
claimed unit and has a term of three (3) years or less from the date it 
became effective, a petition seeking an election will be considered 
timely if filed not more than one hundred and five (105) and not less 
than sixty (60) days before the expiration of the agreement.
    (e) Contract bar where the contract is for more than three (3) 
years. Where a collective bargaining agreement is in effect covering the 
claimed unit and has a term of more than three (3) years from the date 
on which it became effective, a petition seeking an election will be 
considered timely if filed not more than one hundred and five (105) and 
not less than sixty (60) days before the expiration of the initial three 
(3) year period, and any time after the expiration of the initial three 
(3) year period.
    (f) Unusual circumstances. A petition seeking an election or a 
determination relating to representation matters may be filed at any 
time when unusual circumstances exist that substantially affect the unit 
or majority representation.
    (g) Premature extension. Where a collective bargaining agreement 
with a term of three (3) years or less has been

[[Page 443]]

extended before sixty (60) days before its expiration date, the 
extension will not serve as a basis for dismissal of a petition seeking 
an election filed in accordance with this section.
    (h) Contract requirements. Collective bargaining agreements, 
including agreements that go into effect under 5 U.S.C. 7114(c) and 
those that automatically renew without further action by the parties, 
are not a bar to a petition seeking an election under this section 
unless a clear effective date, renewal date where applicable, duration, 
and termination date are ascertainable from the agreement and relevant 
accompanying documentation.



Sec.  2422.13  How are issues raised by your petition resolved?

    (a) Meetings before filing a representation petition. All parties 
affected by the representation issues that may be raised in a petition 
are encouraged to meet before the filing of the petition to discuss 
their interests and narrow and resolve the issues. If requested by all 
parties, a representative of the appropriate Regional Office will 
participate in these meetings.
    (b) Meetings to narrow and resolve the issues after the petition is 
filed. The Regional Director may require all affected parties to meet to 
narrow and resolve the issues raised in the petition.



Sec.  2422.14  What is the effect of your withdrawal 
or the Regional Director's dismissal of a petition?

    (a) Withdrawal/dismissal less than sixty (60) days before contract 
expiration. (1) If you withdraw a timely filed petition seeking an 
election, or the Regional Director dismisses the petition less than 
sixty (60) days before the existing agreement between the incumbent 
exclusive representative and the agency or activity expires, or any time 
after the agreement expires, another petition that seeks an election 
will not be considered timely if filed within a ninety (90) day period 
beginning with either:
    (i) The date on which the Regional Director approves the withdrawal; 
or
    (ii) The date on which the Regional Director dismisses the petition 
when the Authority does not receive an application for review; or
    (iii) The date on which the Authority rules on an application for 
review.
    (2) Other pending petitions that have been timely filed under this 
part will continue to be processed.
    (b) Withdrawal by petitioner. If you submit a withdrawal request for 
a petition seeking an election that the Regional Director receives after 
the notice of hearing issues or after approval of an election agreement, 
whichever occurs first, you will be barred from filing another petition 
seeking an election for the same unit or any subdivision of the unit for 
six (6) months from the date on which the Regional Director approves the 
withdrawal.
    (c) Withdrawal by incumbent. When an election is not held because 
the incumbent disclaims any representation interest in a unit, an 
incumbent's petition seeking an election involving the same unit or a 
subdivision of the same unit will be considered untimely if filed within 
six (6) months of cancellation of the election.



Sec.  2422.15  Do parties have a duty to provide information 
and cooperate after a petition is filed?

    (a) Relevant information. After you file a petition, all parties 
must, upon request of the Regional Director, provide the Regional 
Director and serve all parties affected by issues raised in the petition 
with information concerning parties, issues, and agreements raised in or 
affected by the petition.
    (b) Inclusions and exclusions. After you file a petition seeking an 
election, the Regional Director may direct the agency or activity to 
provide the Regional Director and all parties affected by issues raised 
in the petition with a current alphabetized list of employees and job 
classifications included in and/or excluded from the existing or claimed 
unit affected by issues raised in the petition.
    (c) Cooperation. All parties are required to cooperate in every 
aspect of the representation process. This obligation includes 
cooperating fully with the Regional Director, submitting all required 
and requested information, and participating in prehearing conferences 
and hearings. The Regional

[[Page 444]]

Director may take appropriate action, including dismissal of the 
petition or denial of intervention, if parties fail to cooperate in the 
representation process.



Sec.  2422.16  May parties enter into election agreements, 
and if they do not will the Regional Director direct an election?

    (a) Election agreements. Parties are encouraged to enter into 
election agreements.
    (b) Regional Director directed election. If the parties are unable 
to agree on procedural matters, specifically, the eligibility period, 
method of election, dates, hours, or locations of the election, the 
Regional Director will decide election procedures and issue a Direction 
of Election, without prejudice to the rights of a party to file 
objections to the procedural conduct of the election.
    (c) Opportunity for a hearing. Before directing an election, the 
Regional Director must provide affected parties an opportunity for a 
hearing on non-procedural matters, and then may:
    (1) Issue a Decision and Order; or
    (2) If there are no questions regarding unit appropriateness, issue 
a Direction of Election without a Decision and Order.
    (d) Challenges or objections to a directed election. A Direction of 
Election issued under this section will be issued without prejudice to 
the right of a party to file a challenge to the eligibility of any 
person participating in the election and/or objections to the election.



Sec.  2422.17  What are a notice of hearing and prehearing conference?

    (a) Purpose of notice of a hearing. The Regional Director may issue 
a notice of hearing involving any issues raised in the petition.
    (b) Contents. The notice of hearing will advise affected parties 
about the hearing. The Regional Director will also notify affected 
parties of the issues raised in the petition and establish a date for 
the prehearing conference.
    (c) Prehearing conference. A prehearing conference will be conducted 
by the Hearing Officer, either by meeting or teleconference. All parties 
must participate in a prehearing conference and be prepared to fully 
discuss, narrow, and resolve the issues set forth in the notification of 
the prehearing conference.
    (d) No interlocutory appeal of hearing determination. A party may 
not appeal to the Authority a Regional Director's determination of 
whether to issue a notice of hearing.



Sec.  2422.18  What is the purpose of a representation hearing 
and what procedures are followed?

    (a) Purpose of a hearing. Representation hearings are considered 
investigatory and not adversarial. The purpose of the hearing is to 
develop a full and complete record of relevant and material facts.
    (b) Conduct of hearing. Hearings will be open to the public unless 
otherwise ordered by the Hearing Officer. There is no burden of proof, 
with the exception of proceedings on objections to elections under Sec.  
2422.27(b). Formal rules of evidence do not apply.
    (c) Hearing officer. The Regional Director appoints a hearing 
officer to conduct a hearing. Another hearing officer may be substituted 
for the presiding Hearing Officer at any time.
    (d) Transcript. An official reporter will make the official 
transcript of the hearing. Copies of the official transcript may be 
examined in the appropriate Regional Office during normal working hours. 
Parties should contact the official hearing reporter to purchase copies 
of the official transcript.



Sec.  2422.19  When is it appropriate for a party to file a motion 
at a representation hearing?

    (a) Purpose of a motion. After the Regional Director issues a Notice 
of Hearing in a representation proceeding, a party who seeks a ruling, 
an order, or relief must do so by filing or raising a motion stating the 
order or relief sought and the grounds in support. The Regional Director 
or Hearing Officer may treat challenges and other filings referenced in 
other sections of this subpart as a motion.
    (b) Prehearing motions. Parties must file prehearing motions in 
writing with the Regional Director. Any response

[[Page 445]]

must be filed with the Regional Director within five (5) days after 
service of the motion. The Regional Director may rule on the motion or 
refer the motion to the Hearing Officer.
    (c) Motions made at the hearing. During the hearing, parties may 
make oral motions on the record to the Hearing Officer unless required 
to be in writing. Responses may be oral on the record or in writing, but 
must be provided before the hearing closes, absent permission of the 
Hearing Officer. When appropriate, the Hearing Officer will rule on 
motions made at the hearing or referred to the Hearing Officer by the 
Regional Director.
    (d) Posthearing motions. Parties must file motions made after the 
hearing closes in writing with the Regional Director. Any response to a 
posthearing motion must be filed with the Regional Director within five 
(5) days after service of the motion.



Sec.  2422.20  What rights do parties have at a hearing?

    (a) Rights. A party at a hearing will have the right:
    (1) To appear in person or by a representative;
    (2) To examine and cross-examine witnesses; and
    (3) To introduce into the record relevant evidence.
    (b) Documentary evidence and stipulations. Parties must submit two 
(2) copies of documentary evidence to the Hearing Officer and copies to 
all other parties. Stipulations of fact between the parties may be 
introduced into evidence.
    (c) Oral argument. Parties will have a reasonable period before the 
close of the hearing for oral argument. Presentation of a closing oral 
argument does not preclude a party from filing a brief under paragraph 
(d) of this section.
    (d) Briefs. A party will be given an opportunity to file a brief 
with the Regional Director.
    (1) A party must file an original and two (2) copies of a brief with 
the Regional Director within thirty (30) days from the close of the 
hearing.
    (2) No later than five (5) days before the date the brief is due a 
party must file and the Regional Director must receive a written request 
for an extension of time to file a brief.
    (3) Absent the Regional Director's permission, parties may not file 
a reply brief.



Sec.  2422.21  What are the duties and powers of the Hearing Officer?

    (a) Duties of the Hearing Officer. The Hearing Officer receives 
evidence and inquires fully into the relevant and material facts 
concerning the matters that are the subject of the hearing. The Hearing 
Officer may make recommendations on the record to the Regional Director.
    (b) Powers of the Hearing Officer. After the Regional Director 
assigns a case to a Hearing Officer and before the close of the hearing, 
the Hearing Officer may take any action necessary to schedule, conduct, 
continue, control, and regulate the hearing, including ruling on motions 
when appropriate.



Sec.  2422.22  What are objections and exceptions concerning the conduct 
of the hearing?

    (a) Objections. Objections are oral or written complaints concerning 
the conduct of a hearing.
    (b) Exceptions to rulings. There are automatic exceptions to all 
adverse rulings.



Sec.  2422.23  What election procedures are followed?

    (a) Regional Director conducts or supervises election. The Regional 
Director will decide to either conduct or supervise the election. In 
supervised elections, agencies will perform all acts as specified in the 
Election Agreement or Direction of Election.
    (b) Notice of election. Before the election the activity posts a 
notice of election, prepared by the Regional Director. The notice is 
posted in places where notices to employees are customarily posted and/
or distributed in a manner by which notices are normally distributed. 
The notice of election contains the details and procedures of the 
election, including the appropriate unit, the eligibility period, the 
date(s), hour(s) and location(s) of the election, a sample ballot, and 
the effect of the vote.

[[Page 446]]

    (c) Sample ballot. The reproduction of any document that claims to 
be a copy of the official ballot and that suggests either directly or 
indirectly to employees that the Authority endorses a particular choice 
in the election may constitute grounds for setting aside an election if 
objections are filed under Sec.  2422.26.
    (d) Secret ballot. All elections are by secret ballot.
    (e) Intervenor withdraws from ballot. When two or more labor 
organizations are included as choices in an election, an intervening 
labor organization may, before the approval of an election agreement or 
before the direction of an election, file a written request with the 
Regional Director to remove its name from the ballot. If the Regional 
Director does not receive the request before the approval of an election 
agreement or before the direction of an election, the intervening labor 
organization will remain on the ballot, unless the parties and the 
Regional Director agree otherwise. The Regional Director's decision on 
the request is final, and no party may file an application for review 
with the Authority.
    (f) Incumbent withdrawal from ballot in an election to decertify an 
incumbent representative. When there is no intervening labor 
organization, an election to decertify an incumbent exclusive 
representative is not held if the incumbent provides the Regional 
Director with a written disclaimer of any representation interest in the 
unit. When there is an intervenor, an election is held if the 
intervening labor organization proffers a thirty percent (30%) showing 
of interest within the time period established by the Regional Director.
    (g) Petitioner withdraws from ballot in an election. When there is 
no intervening labor organization, an election is not held if the 
petitioner provides the Regional Director with a written request to 
withdraw the petition. When there is an intervenor, an election is held 
if the intervening labor organization presents a thirty percent (30%) 
showing of interest within the time period established by the Regional 
Director.
    (h) Observers. Subject to the Regional Director's approval, all 
parties may select representatives to observe at the polling 
location(s).
    (1) A party who wants to name observers must file a written request 
with specific names with the Regional Director. This must be filed at 
least fifteen (15) days before an election. The Regional Director may 
grant an extension of time to file a request for named observers for 
good cause where a party requests an extension or on the Regional 
Director's own motion. The request must name and identify the observers 
requested.
    (2) An agency or activity may use as its observers any employees who 
are not eligible to vote in the election, except:
    (i) Supervisors or management officials;
    (ii) Employees who have any official connection with any of the 
labor organizations involved; or
    (iii) Non-employees of the Federal government.
    (3) A labor organization may use as its observers any employees 
eligible to vote in the election, except:
    (i) Employees on leave without pay status who are working for the 
labor organization involved; or
    (ii) Employees who hold an elected office in the union.
    (4) Within five (5) days after service of the request for observers, 
any party that objects must file an objection with the Regional Director 
that states the reasons.
    (5) The Regional Director's ruling on requests for and objections to 
observers is final and binding, and parties may not file an application 
for review with the Authority.



Sec.  2422.24  What are challenged ballots?

    (a) Filing challenges. A party or the Regional Director may, for 
good cause, challenge the eligibility of any person to participate in 
the election.
    (b) Challenged ballot procedure. An individual whose eligibility to 
vote is in dispute will be given the opportunity to vote a challenged 
ballot. If the parties and the Region are unable to resolve the 
challenged ballot(s) before the tally of ballots, the Region will 
impound and preserve the unresolved challenged ballot(s) until the 
Regional

[[Page 447]]

Director makes a determination, if necessary.



Sec.  2422.25  When does the Region tally the ballots?

    (a) Tallying the ballots. When the election is concluded, the 
Regional Director will tally the ballots.
    (b) Service of the tally. When the tally is completed, the Regional 
Director will serve the tally of ballots on the parties in accordance 
with the election agreement or direction of election.
    (c) Valid ballots cast. Representation will be determined by the 
majority of the valid ballots cast.



Sec.  2422.26  How are objections to the election processed?

    (a) Filing objections to the election. Any party may file objections 
to the procedural conduct of the election or to conduct that may have 
improperly affected the results of the election. A party must file an 
objection and the Regional Director must receive it within five (5) days 
after the tally of ballots has been served. Any objections must be 
timely regardless of whether the challenged ballots are sufficient in 
number to affect the results of the election. The objections must be 
supported by clear and concise reasons. A party must file an original 
and two (2) copies of the objections.
    (b) Supporting evidence. The objecting party must file evidence, 
including signed statements, documents, and other materials supporting 
the objections, with the Regional Director within ten (10) days after 
the party files the objections.



Sec.  2422.27  How does the Region address determinative challenged ballots 
and objections?

    (a) Investigation. The Regional Director investigates objections 
and/or determinative challenged ballots that are sufficient in number to 
affect the results of the election.
    (b) Burden of proof. An objecting party bears the burden of proof on 
objections by a preponderance of the evidence. However, no party bears 
the burden of proof on challenged ballots.
    (c) Regional Director action. After investigation, the Regional 
Director takes appropriate action consistent with Sec.  2422.30.
    (d) Consolidated hearing on objections and/or determinative 
challenged ballots and an unfair labor practice hearing. When 
appropriate, and under Sec.  2422.33, a Regional Director may 
consolidate objections and/or determinative challenged ballots with an 
unfair labor practice hearing. An Administrative Law Judge conducts 
these consolidated hearings, except the following provisions do not 
apply:
    (1) Sections 2423.18 and 2423.19(j) of this subchapter concerning 
the burden of proof and settlement conferences are not applicable;
    (2) The Administrative Law Judge may not recommend remedial action 
to be taken or notices to be posted as provided by Sec.  2423.26(a) of 
this subchapter.
    (e) Party exceptions filed with the Authority. A party may file 
exceptions and related submissions with the Authority, and the Authority 
then issues a decision under part 2423 of this chapter.



Sec.  2422.28  When is a runoff election required?

    (a) When a runoff may be held. A runoff election is required in an 
election involving at least three (3) choices, one of which is ``no 
union'' or ``neither,'' when no choice receives a majority of the valid 
ballots cast. However, a runoff may not be held until the Regional 
Director has ruled on objections to the election and determinative 
challenged ballots.
    (b) Eligibility. Employees who were eligible to vote in the original 
election and who are also eligible on the date of the runoff election 
may vote in the runoff election.
    (c) Ballot. The ballot in the runoff election will provide for a 
selection between the two choices receiving the highest and second 
highest number of votes in the election.



Sec.  2422.29  How does the Region address an inconclusive election?

    (a) Inconclusive elections. An inconclusive election is one where 
challenged ballots are not sufficient to affect the outcome of the 
election and one of the following occurs:
    (1) The ballot provides for at least three (3) choices, one of which 
is ``no

[[Page 448]]

union'' or ``neither,'' and the votes are equally divided; or
    (2) The ballot provides for at least three (3) choices, the choice 
receiving the highest number of votes does not receive a majority, and 
at least two other choices receive the next highest and same number of 
votes; or
    (3) When a runoff ballot provides for a choice between two labor 
organizations and results in the votes being equally divided; or
    (4) When the Regional Director determines that there have been 
significant procedural irregularities.
    (b) Eligibility to vote in a rerun election. The Region uses the 
latest payroll period to determine eligibility to vote in a rerun 
election.
    (c) Ballot. If the Regional Director determines that the election is 
inconclusive, the election will be rerun with all the choices that 
appeared on the original ballot.
    (d) Number of reruns. There will be only one rerun of an 
inconclusive election. If the rerun results in another inconclusive 
election, the tally of ballots will show a majority of valid ballots has 
not been cast for any choice, and the Regional Director will issue a 
certification of results. If necessary, a runoff may be held when an 
original election is rerun.



Sec.  2422.30  When does a Regional Director investigate a petition, 
issue notices of hearings, take actions, and issue Decisions and Orders?

    (a) Regional Director investigation. The Regional Director will 
investigate the petition and any other matter as the Regional Director 
deems necessary.
    (b) Regional Director notice of hearing. The Regional Director will 
issue a notice of hearing to inquire into any matter about which a 
material issue of fact exists, and any time there is reasonable cause to 
believe a question exists regarding unit appropriateness.
    (c) Regional Director action. After investigation or hearing, the 
Regional Director can direct an election, or approve an election 
agreement, or issue a Decision and Order.
    (d) Appeal of Regional Director Decision and Order. A party may file 
with the Authority an application for review of a Regional Director 
Decision and Order.
    (e) Contents of the Record. When there has not been a hearing all 
material submitted to and considered by the Regional Director during the 
investigation becomes a part of the record. When a hearing has been 
held, the transcript and all material entered into evidence, including 
any posthearing briefs, become a part of the record.



Sec.  2422.31  When do you file an application for review 
of a Regional Director Decision and Order?

    (a) Filing an application for review. A party must file an 
application for review with the Authority within sixty (60) days of the 
Regional Director's Decision and Order. The sixty (60) day time limit 
under 5 U.S.C. 7105(f) may not be extended or waived. The filing party 
must serve a copy on the Regional Director and all other parties, and 
must also file a statement of service with the Authority.
    (b) Contents. An application for review must be sufficient for the 
Authority to rule on the application without looking at the record. 
However, the Authority may, in its discretion, examine the record in 
evaluating the application. An application must specify the matters and 
rulings to which exception(s) is taken, include a summary of evidence 
relating to any issue raised in the application, and make specific 
references to page citations in the transcript if a hearing was held. An 
application may not raise any issue or rely on any facts not timely 
presented to the Hearing Officer or Regional Director.
    (c) Review. The Authority may grant an application for review only 
when the application demonstrates that review is warranted on one or 
more of the following grounds:
    (1) The decision raises an issue for which there is an absence of 
precedent;
    (2) Established law or policy warrants reconsideration; or,
    (3) There is a genuine issue over whether the Regional Director has:
    (i) Failed to apply established law;
    (ii) Committed a prejudicial procedural error; or

[[Page 449]]

    (iii) Committed a clear and prejudicial error concerning a 
substantial factual matter.
    (d) Opposition. A party may file with the Authority an opposition to 
an application for review within ten (10) days after the party is served 
with the application. The opposing party must serve a copy on the 
Regional Director and all other parties, and must also file a statement 
of service with the Authority.
    (e) Regional Director Decision and Order becomes the Authority's 
action. A Decision and Order of a Regional Director becomes the action 
of the Authority when:
    (1) No party files an application for review with the Authority 
within sixty (60) days after the date of the Regional Director's 
Decision and Order; or
    (2) A party files a timely application for review with the Authority 
and the Authority does not undertake to grant review of the Regional 
Director's Decision and Order within sixty (60) days of the filing of 
the application; or
    (3) The Authority denies an application for review of the Regional 
Director's Decision and Order.
    (f) Authority grant of review and stay. The Authority may rule on 
the issue(s) in an application for review in its order granting the 
application for review. Neither filing nor granting an application for 
review will stay any action ordered by the Regional Director unless 
specifically ordered by the Authority.
    (g) Briefs if review is granted. If the Authority does not rule on 
the issue(s) in the application for review in its order granting review, 
the Authority may, in its discretion, give the parties an opportunity to 
file briefs. The briefs will be limited to the issue(s) referenced in 
the Authority's order granting review.



Sec.  2422.32  When does a Regional Director issue a certification 
or a revocation of certification?

    (a) Certifications. The Regional Director issues an appropriate 
certification when:
    (1) After an election, runoff, or rerun,
    (i) No party files an objection or challenged ballots are not 
determinative, or
    (ii) The Region decides and resolves objections and determinative 
challenged ballots; or
    (2) The Regional Director issues a Decision and Order requiring a 
certification and the Decision and Order becomes the action of the 
Authority under Sec.  2422.31(e) or the Authority directs the issuance 
of a certification.
    (b) Revocations. Without prejudice to any rights and obligations 
that may exist under the Statute, the Regional Director revokes a 
recognition or certification, as appropriate, and provides a written 
statement of reasons when:
    (1) An incumbent exclusive representative files, during a 
representation proceeding, a disclaimer of any representational interest 
in the unit; or
    (2) Due to a substantial change in the character and scope of the 
unit, the unit is no longer appropriate and an election is not 
warranted.



Sec.  2422.33  Relief under part 2423 of this chapter.

    Remedial relief that was or could have been obtained as a result of 
a motion, objection, or challenge filed or raised under this subpart, 
may not be the basis for similar relief under part 2423 of this chapter: 
But related matters may be consolidated for hearing as noted in Sec.  
2422.27(d) of this subpart.



Sec.  2422.34  What are the parties' rights and obligations 
when a representation proceeding is pending?

    (a) Existing recognitions, agreements, and obligations under the 
Statute. When a representation proceeding is pending, parties must 
maintain existing recognitions, follow the terms and conditions of 
existing collective bargaining agreements, and fulfill all other 
representational and bargaining responsibilities under the Statute.
    (b) Unit status of individual employees. A party may take action 
based on its position regarding the bargaining unit status of individual 
employees, under 3 U.S.C. 431(d)(2), 5 U.S.C. 7103(a)(2), and 7112(b) 
and (c). But its actions may be challenged, reviewed, and remedied where 
appropriate.

[[Page 450]]



PART 2423_UNFAIR LABOR PRACTICE PROCEEDINGS--Table of Contents



Sec.
2423.0 Applicability of this part.

    Subpart A_Filing, Investigating, Resolving, and Acting on Charges

2423.1 Can a Regional Office help the parties resolve unfair labor 
          practice disputes before a Regional Director decides whether 
          to issue a complaint?
2423.2 What Alternative Dispute Resolution (ADR) services does the OGC 
          provide?
2423.3 Who may file charges?
2423.4 What must you state in the charge and what supporting evidence 
          and documents should you submit?
2423.5 [Reserved]
2423.6 What is the process for filing and serving copies of charges?
2423.7 [Reserved]
2423.8 How are charges investigated?
2423.9 How are charges amended?
2423.10 What actions may the Regional Director take with regard to your 
          charge?
2423.11 What happens if a Regional Director decides not to issue a 
          complaint?
2423.12 What types of settlements of unfair labor practice charges are 
          possible after a Regional Director decides to issue a 
          complaint but before issuance of a complaint?
2423.13-2423.19 [Reserved]

             Subpart B_Post Complaint, Prehearing Procedures

2423.20 Issuance and contents of the complaint; answer to the complaint; 
          amendments; role of Office of the Administrative Law Judges.
2423.21 Motions procedure.
2423.22 Intervenors.
2423.23 Prehearing disclosure.
2423.24 Powers and duties of the Administrative Law Judge during 
          prehearing proceedings.
2423.25 Post complaint, prehearing settlements.
2423.26 Stipulations of fact submissions.
2423.27 Summary judgment motions.
2423.28 Subpoenas.
2423.29 [Reserved]

                      Subpart C_Hearing Procedures

2423.30 General rules.
2423.31 Powers and duties of the Administrative Law Judge at the 
          hearing.
2423.32 Burden of proof before the Administrative Law Judge.
2423.33 Posthearing briefs.
2423.34 Decision and record.
2423.35-2423.39 [Reserved]

   Subpart D_Post-Transmission and Exceptions to Authority Procedures

2423.40 Exceptions; oppositions and cross-exceptions; oppositions to 
          cross-exceptions; waiver.
2423.41 Action by the Authority; compliance with Authority decisions and 
          orders.
2423.42 Backpay proceedings.
2423.43-2423.49 [Reserved]

    Authority: 3 U.S.C. 431; 5 U.S.C. 7134.

    Source: 62 FR 40916, July 31, 1997, unless otherwise noted.



Sec.  2423.0  Applicability of this part.

    This part applies to any unfair labor practice cases that are 
pending or filed with the FLRA on or after July 25, 2012.

[77 FR 37759, June 25, 2012]



    Subpart A_Filing, Investigating, Resolving, and Acting on Charges

    Source: 77 FR 37759, June 25, 2012, unless otherwise noted.



Sec.  2423.1  Can a Regional Office help the parties resolve unfair 
labor practice disputes before a Regional Director decides whether 
to issue a complaint?

    (a) Resolving unfair labor practice disputes before filing a charge. 
The purposes and policies of the Federal Service Labor-Management 
Relations Statute (Statute) can best be achieved by the collaborative 
efforts of all persons covered by that law. The General Counsel 
encourages all persons to meet and, in good faith, attempt to resolve 
unfair labor practice disputes before filing unfair labor practice 
charges. If requested, and the parties agree, a representative of the 
Regional Office, in appropriate circumstances, may participate in these 
meetings to assist the parties to identify the issues and their 
interests and to resolve the dispute. Parties' attempts to resolve 
unfair labor practice disputes before filing an unfair labor practice 
charge do not toll the time limitations for filing a charge set forth at 
5 U.S.C. 7118(a)(4).
    (b) Resolving unfair labor practice disputes after filing a charge. 
The General Counsel encourages the informal resolution of unfair labor 
practice allegations after a charge is filed and before

[[Page 451]]

the Regional Director makes a merit determination. A representative of 
the appropriate Regional Office, as part of the investigation, may 
assist the parties in informally resolving their dispute.



Sec.  2423.2  What Alternative Dispute Resolution (ADR) services 
does the OGC provide?

    (a) Purpose of ADR services. The Office of the General Counsel 
furthers its mission and implements the agency-wide Federal Labor 
Relations Authority Collaboration and Alternative Dispute Resolution 
Program by promoting stable and productive labor-management 
relationships governed by the Statute and by providing services that 
assist labor organizations and agencies, on a voluntary basis, to:
    (1) Develop collaborative labor-management relationships;
    (2) Avoid unfair labor practice disputes; and
    (3) Informally resolve unfair labor practice disputes.
    (b) Types of ADR Services. Agencies and labor organizations may 
jointly request, or agree to, the provision of the following services by 
the Office of the General Counsel:
    (1) Facilitation. Assisting the parties in improving their labor-
management relationship as governed by the Statute;
    (2) Intervention. Intervening when parties are experiencing or 
expect significant unfair labor practice disputes;
    (3) Training. Training labor organization officials and agency 
representatives on their rights and responsibilities under the Statute 
and how to avoid litigation over those rights and responsibilities, and 
on using problem-solving and ADR skills, techniques, and strategies to 
resolve informally unfair labor practice disputes; and
    (4) Education. Working with the parties to recognize the benefits 
of, and establish processes for, avoiding unfair labor practice 
disputes, and resolving any unfair labor practice disputes that arise by 
consensual, rather than adversarial, methods.
    (c) ADR services after initiation of an investigation. As part of 
processing an unfair labor practice charge, the Office of the General 
Counsel may suggest to the parties, as appropriate, that they may 
benefit from these ADR services.



Sec.  2423.3  Who may file charges?

    (a) Filing charges. Any person may charge an activity, agency, or 
labor organization with having engaged in, or engaging in, any unfair 
labor practice prohibited under 5 U.S.C. 7116.
    (b) Charging Party. Charging Party means the individual, labor 
organization, activity, or agency filing an unfair labor practice charge 
with a Regional Director.
    (c) Charged Party. Charged Party means the activity, agency, or 
labor organization charged with allegedly having engaged in, or engaging 
in, an unfair labor practice.



Sec.  2423.4  What must you state in the charge and what supporting evidence 
and documents should you submit?

    (a) What to file. You, the Charging Party, may file a charge 
alleging a violation of 5 U.S.C. 7116 by providing the following 
information on a form designated by the General Counsel, or on a 
substantially similar form, or electronically through the use of the 
eFiling system on the FLRA's Web site at www.flra.gov, or by facsimile 
transmission:
    (1) The Charging Party's name and mailing address, including street 
number, city, state, and zip code;
    (2) The Charged Party's name and mailing address, including street 
number, city, state, and zip code;
    (3) The Charging Party's point of contact's name, address, telephone 
number, facsimile number, if known, and email address, if known;
    (4) The Charged Party's point of contact's name, address, telephone 
number, facsimile number, if known, and email address, if known;
    (5) A clear and concise statement of the facts alleged to constitute 
an unfair labor practice, a statement of how those facts allegedly 
violate specific section(s) and paragraph(s) of the Statute, and the 
date and place of occurrence of the particular acts; and
    (6) A statement whether the subject matter raised in the charge:
    (i) Has been raised previously in a grievance procedure;

[[Page 452]]

    (ii) Has been referred to the Federal Service Impasses Panel, the 
Federal Mediation and Conciliation Service, the Equal Employment 
Opportunity Commission, the Merit Systems Protection Board, or the 
Office of Special Counsel for consideration or action;
    (iii) Involves a negotiability issue that you raised in a petition 
pending before the Authority under part 2424 of this subchapter; or
    (iv) Has been the subject of any other administrative or judicial 
proceeding.
    (7) A statement describing the result or status of any proceeding 
identified in paragraph (a)(6) of this section.
    (b) When and how to file. Under 5 U.S.C. 7118(a)(4), a charge 
alleging an unfair labor practice must be in writing and signed or filed 
electronically using the eFiling system on the FLRA's Web site at 
www.flra.gov. It is normally filed within six (6) months of its 
occurrence unless one of the two (2) circumstances described under 
paragraph (B) of 5 U.S.C. 7118(a)(4) applies.
    (c) Declarations of truth and statement of service. A charge must 
also contain a declaration by the individual signing the charge, under 
the penalties of the Criminal Code (18 U.S.C. 1001), that its contents 
are true and correct to the best of that individual's knowledge and 
belief.
    (d) Statement of service. You must also state that you served the 
charge on the Charged Party, and you must list the name, title and 
location of the individual served, and the method of service.
    (e) Self-contained document. A charge must be a self-contained 
document describing the alleged unfair labor practice without a need to 
refer to supporting evidence and documents submitted under paragraph (f) 
of this section.
    (f) Submitting supporting evidence and documents and identifying 
potential witnesses. When filing a charge, you must submit to the 
Regional Director any supporting evidence and documents, including, but 
not limited to, correspondence and memoranda, records, reports, 
applicable collective bargaining agreement clauses, memoranda of 
understanding, minutes of meetings, applicable regulations, statements 
of position, and other documentary evidence. You also must identify 
potential witnesses with contact information (telephone number, email 
address, and facsimile number) and provide a brief synopsis of their 
expected testimony.



Sec.  2423.5  [Reserved]



Sec.  2423.6  What is the process for filing and serving copies of charges?

    (a) Where to file. You must file the charge with the Regional 
Director for the region in which the alleged unfair labor practice has 
occurred or is occurring. A charge alleging that an unfair labor 
practice has occurred or is occurring in two or more regions may be 
filed with the Regional Director in any of those regions.
    (b) Date of filing. When a Regional Director receives a charge, it 
is deemed filed. A charge filed during business hours by facsimile or 
electronic means is deemed received on the business day on which it is 
received (either by the Regional Office fax machine or by the eFiling 
system), until midnight local time in the Region where it is filed. But 
when a Region receives a charge after the close of the business day by 
any other method, it will be deemed received and docketed on the next 
business day. The business hours for each of the Regional Offices are 
set forth at http://www.FLRA.gov.
    (c) Method of filing. You may file a charge with the Regional 
Director in person or by commercial delivery, first class mail, 
certified mail, facsimile, or electronically through use of the eFiling 
system on the FLRA's Web site at www.flra.gov. If filing by facsimile 
transmission or by electronic means, you are not required to file an 
original copy of the charge with the Region. You assume responsibility 
for the Regional Director's receipt of a charge. Supporting evidence and 
documents must be submitted to the Regional Director in person, by 
commercial delivery, first class mail, certified mail, facsimile 
transmission, or through the FLRA's eFiling system.
    (d) Service of the charge. You must serve a copy of the charge 
(without supporting evidence and documents) on the Charged Party. Where 
facsimile equipment is available, you may serve the charge by facsimile 
transmission,

[[Page 453]]

as paragraph (c) of this section discusses. Alternatively, you may serve 
the charge by electronic mail (``email''), but only if the Charged Party 
has agreed to be served by email. The Region routinely serves a copy of 
the charge on the Charged Party, but you remain responsible for serving 
the charge, consistent with the requirements in this paragraph.



Sec.  2423.7  [Reserved]



Sec.  2423.8  How are charges investigated?

    (a) Investigation. The Regional Director, on behalf of the General 
Counsel, conducts an investigation of the charge as deemed necessary. 
During the course of the investigation, all parties involved are given 
an opportunity to present their evidence and views to the Regional 
Director.
    (b) Cooperation. The purposes and policies of the Statute can best 
be achieved by the parties' full cooperation and their timely submission 
of all relevant information from all potential sources during the 
investigation. All persons must cooperate fully with the Regional 
Director in the investigation of charges. A failure to cooperate during 
the investigation of a charge may provide grounds to dismiss a charge 
for failure to produce evidence supporting the charge. Cooperation 
includes any of the following actions, when deemed appropriate by the 
Regional Director:
    (1) Making union officials, employees, and agency supervisors and 
managers available to give sworn/affirmed testimony regarding matters 
under investigation;
    (2) Producing documentary evidence pertinent to the matters under 
investigation;
    (3) Providing statements of position on the matters under 
investigation; and
    (4) Responding to an agent's communications during an investigation 
in a timely manner.
    (c) Investigatory subpoenas. If a person fails to cooperate with the 
Regional Director in the investigation of a charge, the General Counsel, 
upon recommendation of a Regional Director, may decide in appropriate 
circumstances to issue a subpoena under 5 U.S.C. 7132 for the attendance 
and testimony of witnesses and the production of documentary or other 
evidence. However, no subpoena, which requires the disclosure of 
intramanagement guidance, advice, counsel, or training within an agency 
or between an agency and the Office of Personnel Management, will issue 
under this section.
    (1) A subpoena can only be served by any individual who is at least 
18 years old and who is not a party to the proceeding. The individual 
who served the subpoena must certify that he or she did so:
    (i) By delivering it to the witness in person;
    (ii) By registered or certified mail; or
    (iii) By delivering the subpoena to a responsible individual (named 
in the document certifying the delivery) at the residence or place of 
business (as appropriate) of the person for whom the subpoena was 
intended. The subpoena must show on its face the name and address of the 
Regional Director and the General Counsel.
    (2) Any person served with a subpoena who does not intend to comply 
must, within 5 days after the date of service of the subpoena upon such 
person, petition in writing to revoke the subpoena. A copy of any 
petition to revoke must be served on the General Counsel.
    (3) The General Counsel must revoke the subpoena if the witness or 
evidence, the production of which is required, is not material and 
relevant to the matters under investigation or in question in the 
proceedings, or the subpoena does not describe with sufficient 
particularity the evidence the production of which is required, or if 
for any other reason sufficient in law the subpoena is invalid. The 
General Counsel must state the procedural or other grounds for the 
ruling on the petition to revoke. The petition to revoke becomes part of 
the official record if there is a hearing under subpart C of this part.
    (4) Upon the failure of any person to comply with a subpoena issued 
by the General Counsel, the General Counsel must determine whether to 
institute proceedings in the appropriate district court for the 
enforcement of the subpoena. Enforcement must not be

[[Page 454]]

sought if to do so would be inconsistent with law, including the 
Statute.
    (d) Confidentiality. It is the General Counsel's policy to protect 
the identity of individuals who submit statements and information during 
the investigation, and to protect against the disclosure of documents 
obtained during the investigation, to ensure the General Counsel's 
ability to obtain all relevant information. However, after a Regional 
Director issues a complaint and when necessary to prepare for a hearing, 
the Region may disclose the identification of witnesses, a synopsis of 
their expected testimony, and documents proposed to be offered into 
evidence at the hearing, as required by the prehearing disclosure 
requirements in Sec.  2423.23.



Sec.  2423.9  How are charges amended?

    Before the issuance of a complaint, the Charging Party may amend the 
charge under the requirements set forth in Sec.  2423.6.



Sec.  2423.10  What actions may the Regional Director take with regard 
to your charge?

    (a) Regional Director action. The Regional Director, on behalf of 
the General Counsel, may take any of the following actions, as 
appropriate:
    (1) Approve a request to withdraw a charge;
    (2) Dismiss a charge;
    (3) Approve a written settlement agreement under Sec.  2423.12;
    (4) Issue a complaint; or
    (5) Withdraw a complaint.
    (b) Request for appropriate temporary relief. Parties may request 
the General Counsel to seek appropriate temporary relief (including a 
restraining order) under 5 U.S.C. 7123(d). The General Counsel may 
initiate and prosecute injunctive proceedings under 5 U.S.C. 7123(d) 
only upon approval of the Authority. A determination by the General 
Counsel not to seek approval of the Authority to seek temporary relief 
is final and cannot be appealed to the Authority.
    (c) General Counsel requests to the Authority. When a complaint 
issues and the Authority approves the General Counsel's request to seek 
appropriate temporary relief (including a restraining order) under 5 
U.S.C. 7123(d), the General Counsel may make application for appropriate 
temporary relief (including a restraining order) in the district court 
of the United States within which the unfair labor practice is alleged 
to have occurred or in which the party sought to be enjoined resides or 
transacts business. The General Counsel may seek temporary relief if it 
is just and proper and the record establishes probable cause that an 
unfair labor practice is being committed. Temporary relief will not be 
sought if it would interfere with the ability of the agency to carry out 
its essential functions.
    (d) Actions subsequent to obtaining appropriate temporary relief. 
The General Counsel must inform the district court that granted 
temporary relief under 5 U.S.C. 7123(d) whenever an Administrative Law 
Judge recommends dismissal of the complaint, in whole or in part.



Sec.  2423.11  What happens if a Regional Director decides not 
to issue a complaint?

    (a) Opportunity to withdraw a charge. If the Regional Director 
determines that the charge has not been timely filed, that the charge 
fails to state an unfair labor practice, or for other appropriate 
reasons, the Regional Director may request the Charging Party to 
withdraw the charge.
    (b) Dismissal letter. If the Charging Party does not withdraw the 
charge within a reasonable period of time, the Regional Director will 
dismiss the charge and provide the parties with a written statement of 
the reasons for not issuing a complaint.
    (c) Appeal of a dismissal letter. The Charging Party may obtain 
review of the Regional Director's decision to dismiss a charge by filing 
an appeal with the General Counsel, either in writing or by email to 
[email protected], within 25 days after the Regional Director served 
the decision. A Charging Party must serve a copy of the appeal on the 
Regional Director. The General Counsel must serve notice on the Charged 
Party that the Charging Party has filed an appeal.
    (d) Extension of time. The Charging Party may file a request, either 
in writing or by email to [email protected], for an extension of

[[Page 455]]

time to file an appeal, which must be received by the General Counsel 
not later than five (5) days before the date the appeal is due. A 
Charging Party must serve a copy of the request for an extension of time 
on the Regional Director.
    (e) Grounds for granting an appeal. The General Counsel may grant an 
appeal when the appeal establishes at least one of the following 
grounds:
    (1) The Regional Director's decision did not consider material facts 
that would have resulted in issuance of a complaint;
    (2) The Regional Director's decision is based on a finding of a 
material fact that is clearly erroneous;
    (3) The Regional Director's decision is based on an incorrect 
statement or application of the applicable rule of law;
    (4) There is no Authority precedent on the legal issue in the case; 
or
    (5) The manner in which the Region conducted the investigation has 
resulted in prejudicial error.
    (f) General Counsel action. The General Counsel may deny the appeal 
of the Regional Director's dismissal of the charge, or may grant the 
appeal and remand the case to the Regional Director to take further 
action. The General Counsel's decision on the appeal states the grounds 
listed in paragraph (e) of this section for denying or granting the 
appeal, and is served on all the parties. Absent a timely motion for 
reconsideration, the General Counsel's decision is final.
    (g) Reconsideration. After the General Counsel issues a final 
decision, the Charging Party may move for reconsideration of the final 
decision if it can establish extraordinary circumstances in its moving 
papers. The motion must be filed within 10 days after the date on which 
the General Counsel's final decision is postmarked. A motion for 
reconsideration must state with particularity the extraordinary 
circumstances claimed and must be supported by appropriate citations. 
The decision of the General Counsel on a motion for reconsideration is 
final.



Sec.  2423.12  What types of settlements of unfair labor practice charges 
are possible after a Regional Director decides to issue a complaint but 
before issuance of a complaint?

    (a) Bilateral informal settlement agreement. Before issuing a 
complaint, the Regional Director may give the Charging Party and the 
Charged Party a reasonable period of time to enter into an informal 
settlement agreement to be approved by the Regional Director. When a 
Charged Party complies with the terms of an informal settlement 
agreement approved by the Regional Director, no further action is taken 
in the case. If the Charged Party fails to perform its obligations under 
the approved informal settlement agreement, the Regional Director may 
institute further proceedings.
    (b) Unilateral informal settlement agreement. If the Charging Party 
elects not to become a party to a bilateral settlement agreement, which 
the Regional Director concludes fulfills the policies of the Statute, 
the Regional Director may choose to approve a unilateral settlement 
between the Regional Director and the Charged Party. The Regional 
Director, on behalf of the General Counsel, must issue a letter stating 
the grounds for approving the settlement agreement and declining to 
issue a complaint. The Charging Party may obtain review of the Regional 
Director's action by filing an appeal with the General Counsel under 
Sec.  2423.11(c) and (d). The General Counsel may grant an appeal when 
the Charging Party has shown that the Regional Director's approval of a 
unilateral settlement agreement does not fulfill the purposes and 
policies of the Statute. The General Counsel must take action on the 
appeal as set forth in Sec.  2423.11(b) through (g).

[[Page 456]]



Sec. Sec.  2423.13-2423.19  [Reserved]



             Subpart B_Post Complaint, Prehearing Procedures



Sec.  2423.20  Issuance and contents of the complaint; 
answer to the complaint; amendments; role of Office of Administrative 
Law Judges.

    (a) Complaint. Whenever formal proceedings are deemed necessary, the 
Regional Director shall file and serve, in accordance with Sec.  2429.12 
of this subchapter, a complaint with the Office of Administrative Law 
Judges. The decision to issue a complaint shall not be subject to 
review. Any complaint may be withdrawn by the Regional Director prior to 
the hearing. The complaint shall set forth:
    (1) Notice of the charge;
    (2) The basis for jurisdiction;
    (3) The facts alleged to constitute an unfair labor practice;
    (4) The particular sections of 5 U.S.C., chapter 71 and the rules 
and regulations involved;
    (5) Notice of the date, time, and place that a hearing will take 
place before an Administrative Law Judge; and
    (6) A brief statement explaining the nature of the hearing.
    (b) Answer. Within 20 days after the date of service of the 
complaint, but in any event, prior to the beginning of the hearing, the 
Respondent shall file and serve, in accordance with part 2429 of this 
subchapter, an answer with the Office of Administrative Law Judges. The 
answer shall admit, deny, or explain each allegation of the complaint. 
If the Respondent has no knowledge of an allegation or insufficient 
information as to its truthfulness, the answer shall so state. Absent a 
showing of good cause to the contrary, failure to file an answer or 
respond to any allegation shall constitute an admission. Motions to 
extend the filing deadline shall be filed in accordance with Sec.  
2423.21.
    (c) Amendments. The Regional Director may amend the complaint at any 
time before the answer is filed. The Respondent then has 20 days from 
the date of service of the amended complaint to file an answer with the 
Office of Administrative Law Judges. Prior to the beginning of the 
hearing, the answer may be amended by the Respondent within 20 days 
after the answer is filed. Thereafter, any requests to amend the 
complaint or answer must be made by motion to the Office of 
Administrative Law Judges.
    (d) Office of Administrative Law Judges. Pleadings, motions, 
conferences, hearings, and other matters throughout as specified in 
subparts B, C, and D of this part shall be administered by the Office of 
Administrative Law Judges, as appropriate. The Chief Administrative Law 
Judge, or any Administrative Law Judge designated by the Chief 
Administrative Law Judge, shall administer any matters properly 
submitted to the Office of Administrative Law Judges. Throughout 
subparts B, C, and D of this part, ``Administrative Law Judge'' or 
``Judge'' refers to the Chief Administrative Law Judge or his or her 
designee.



Sec.  2423.21  Motions procedure.

    (a) General requirements. All motions, except those made during a 
prehearing conference or hearing, shall be in writing. Motions for an 
extension of time, postponement of a hearing, or any other procedural 
ruling shall include a statement of the position of the other parties on 
the motion. All written motions and responses in subparts B, C, or D of 
this part shall satisfy the filing and service requirements of part 2429 
of this subchapter.
    (b) Motions made to the Administrative Law Judge. Prehearing motions 
and motions made at the hearing shall be filed with the Administrative 
Law Judge. Unless otherwise specified in subparts B or C of this part, 
or otherwise directed or approved by the Administrative Law Judge:
    (1) Prehearing motions shall be filed at least 10 days prior to the 
hearing, and responses shall be filed within 5 days after the date of 
service of the motion;
    (2) Responses to motions made during the hearing shall be filed 
prior to the close of hearing;
    (3) Posthearing motions shall be filed within 10 days after the date 
the hearing closes, and responses shall be filed within 5 days after the 
date of service of the motion; and
    (4) Motions to correct the transcript shall be filed with the 
Administrative

[[Page 457]]

Law Judge within 10 days after receipt of the transcript, and responses 
shall be filed within 5 days after the date of service of the motion.
    (c) Post-transmission motions. After the case has been transmitted 
to the Authority, motions shall be filed with the Authority. Responses 
shall be filed within 5 days after the date of service of the motion.
    (d) Interlocutory appeals. Motions for an interlocutory appeal of 
any ruling and responses shall be filed in accordance with this section 
and Sec.  2423.31(c).



Sec.  2423.22  Intervenors.

    Motions for permission to intervene and responses shall be filed in 
accordance with Sec.  2423.21. Such motions shall be granted upon a 
showing that the outcome of the proceeding is likely to directly affect 
the movant's rights or duties. Intervenors may participate only: on the 
issues determined by the Administrative Law Judge to affect them; and to 
the extent permitted by the Judge. Denial of such motions may be 
appealed pursuant to Sec.  2423.21(d).



Sec.  2423.23  Prehearing disclosure.

    Unless otherwise directed or approved by the Judge, the parties 
shall exchange, in accordance with the service requirements of Sec.  
2429.27(b) of this subchapter, the following items at least 14 days 
prior to the hearing:
    (a) Witnesses. Proposed witness lists, including a brief synopsis of 
the expected testimony of each witness;
    (b) Documents. Copies of documents, with an index, proposed to be 
offered into evidence; and
    (c) Theories. A brief statement of the theory of the case, including 
relief sought, and any and all defenses to the allegations in the 
complaint.



Sec.  2423.24  Powers and duties of the Administrative Law Judge 
during prehearing proceedings.

    (a) Prehearing procedures. The Administrative Law Judge shall 
regulate the course and scheduling of prehearing matters, including 
prehearing orders, conferences, disclosure, motions, and subpoena 
requests.
    (b) Changing date, time, or place of hearing. After issuance of the 
complaint or any prehearing order, the Administrative Law Judge may, in 
the Judge's discretion or upon motion by any party through the motions 
procedure in Sec.  2423.21, change the date, time, or place of the 
hearing.
    (c) Prehearing order. (1) The Administrative Law Judge may, in the 
Judge's discretion or upon motion by any party through the motions 
procedure in Sec.  2423.21, issue a prehearing order confirming or 
changing:
    (i) The date, time, or place of the hearing;
    (ii) The schedule for prehearing disclosure of witness lists and 
documents intended to be offered into evidence at the hearing;
    (iii) The date for submission of procedural and substantive motions;
    (iv) The date, time, and place of the prehearing conference; and
    (v) Any other matter pertaining to prehearing or hearing procedures.
    (2) The prehearing order shall be served in accordance with Sec.  
2429.12 of this subchapter.
    (d) Prehearing conferences. The Administrative Law Judge shall 
conduct one or more prehearing conferences, either by telephone or in 
person, at least 7 days prior to the hearing date, unless the 
Administrative Law Judge determines that a prehearing conference would 
serve no purpose and no party has moved for a prehearing conference in 
accordance with Sec.  2423.21. If a prehearing conference is held, all 
parties must participate in the prehearing conference and be prepared to 
discuss, narrow, and resolve the issues set forth in the complaint and 
answer, as well as any prehearing disclosure matters or disputes. When 
necessary, the Administrative Law Judge shall prepare and file for the 
record a written summary of actions taken at the conference. Summaries 
of the conference shall be served on all parties in accordance with 
Sec.  2429.12 of this subchapter. The following may also be considered 
at the prehearing conference:
    (1) Settlement of the case, either by the Judge conducting the 
prehearing conference or pursuant to Sec.  2423.25;
    (2) Admissions of fact, disclosure of contents and authenticity of 
documents, and stipulations of fact;
    (3) Objections to the introduction of evidence at the hearing, 
including oral

[[Page 458]]

or written testimony, documents, papers, exhibits, or other submissions 
proposed by a party;
    (4) Subpoena requests or petitions to revoke subpoenas;
    (5) Any matters subject to official notice;
    (6) Outstanding motions; or
    (7) Any other matter that may expedite the hearing or aid in the 
disposition of the case.
    (e) Sanctions. The Administrative Law Judge may, in the Judge's 
discretion or upon motion by any party through the motions procedure in 
Sec.  2423.21, impose sanctions upon the parties as necessary and 
appropriate to ensure that a party's failure to fully comply with 
subpart B or C of this part is not condoned. Such authority includes, 
but is not limited to, the power to:
    (1) Prohibit a party who fails to comply with any requirement of 
subpart B or C of this part from, as appropriate, introducing evidence, 
calling witnesses, raising objections to the introduction of evidence or 
testimony of witnesses at the hearing, presenting a specific theory of 
violation, seeking certain relief, or relying upon a particular defense.
    (2) Refuse to consider any submission that is not filed in 
compliance with subparts B or C of this part.



Sec.  2423.25  Post complaint, prehearing settlements.

    (a) Informal and formal settlements. Post complaint settlements may 
be either informal or formal.
    (1) Informal settlement agreements provide for withdrawal of the 
complaint by the Regional Director and are not subject to approval by or 
an order of the Authority. If the Respondent fails to perform its 
obligations under the informal settlement agreement, the Regional 
Director may reinstitute formal proceedings consistent with this 
subpart.
    (2) Formal settlement agreements are subject to approval by the 
Authority, and include the parties' agreement to waive their right to a 
hearing and acknowledgment that the Authority may issue an order 
requiring the Respondent to take action appropriate to the terms of the 
settlement. The formal settlement agreement shall also contain the 
Respondent's consent to the Authority's application for the entry of a 
decree by an appropriate federal court enforcing the Authority's order.
    (b) Informal settlement procedure. If the Charging Party and the 
Respondent enter into an informal settlement agreement that is accepted 
by the Regional Director, the Regional Director shall withdraw the 
complaint and approve the informal settlement agreement. If the Charging 
Party fails or refuses to become a party to an informal settlement 
agreement offered by the Respondent, and the Regional Director concludes 
that the offered settlement will effectuate the policies of the Federal 
Service Labor-Management Relations Statute, the Regional Director shall 
enter into the agreement with the Respondent and shall withdraw the 
complaint. The Charging Party then may obtain a review of the Regional 
Director's action by filing an appeal with the General Counsel as 
provided in subpart A of this part.
    (c) Formal settlement procedure. If the Charging Party and the 
Respondent enter into a formal settlement agreement that is accepted by 
the Regional Director, the Regional Director shall withdraw the 
complaint upon approval of the formal settlement agreement by the 
Authority. If the Charging Party fails or refuses to become a party to a 
formal settlement agreement offered by the Respondent, and the Regional 
Director concludes that the offered settlement will effectuate the 
policies of the Federal Service Labor-Management Relations Statute, the 
agreement shall be between the Respondent and the Regional Director. The 
formal settlement agreement together with the Charging Party's 
objections, if any, shall be submitted to the Authority for approval. 
The Authority may approve a formal settlement agreement upon a 
sufficient showing that it will effectuate the policies of the Federal 
Service Labor-Management Relations Statute.
    (d) Settlement judge program. The Administrative Law Judge, in the 
Judge's discretion or upon the request of any party, may assign a judge 
or other appropriate official, who shall be other

[[Page 459]]

than the hearing judge unless otherwise mutually agreed to by the 
parties, to conduct negotiations for settlement.
    (1) The settlement official shall convene and preside over 
settlement conferences by telephone or in person.
    (2) The settlement official may require that the representative for 
each party be present at settlement conferences and that the parties or 
agents with full settlement authority be present or available by 
telephone.
    (3) The settlement official shall not discuss any aspect of the case 
with the hearing judge.
    (4) No evidence regarding statements, conduct, offers of settlement, 
and concessions of the parties made in proceedings before the settlement 
official shall be admissible in any proceeding before the Administrative 
Law Judge or Authority, except by stipulation of the parties.



Sec.  2423.26  Stipulations of fact submissions.

    (a) General. When all parties agree that no material issue of fact 
exists, the parties may jointly submit a motion to the Administrative 
Law Judge or Authority requesting consideration of the matter based upon 
stipulations of fact. Briefs of the parties are required and must be 
submitted within 30 days of the joint motion. Upon receipt of the 
briefs, such motions shall be ruled upon expeditiously.
    (b) Stipulations to the Administrative Law Judge. Where the 
stipulation adequately addresses the appropriate material facts, the 
Administrative Law Judge may grant the motion and decide the case 
through stipulation.
    (c) Stipulations to the Authority. Where the stipulation provides an 
adequate basis for application of established precedent and a decision 
by the Administrative Law Judge would not assist in the resolution of 
the case, or in unusual circumstances, the Authority may grant the 
motion and decide the case through stipulation.
    (d) Decision based on stipulation. Where the motion is granted, the 
Authority will adjudicate the case and determine whether the parties 
have met their respective burdens based on the stipulation and the 
briefs.



Sec.  2423.27  Summary judgment motions.

    (a) Motions. Any party may move for a summary judgment in its favor 
on any of the issues pleaded. Unless otherwise approved by the 
Administrative Law Judge, such motion shall be made no later than 10 
days prior to the hearing. The motion shall demonstrate that there is no 
genuine issue of material fact and that the moving party is entitled to 
a judgment as a matter of law. Such motions shall be supported by 
documents, affidavits, applicable precedent, or other appropriate 
materials.
    (b) Responses. Responses must be filed within 5 days after the date 
of service of the motion. Responses may not rest upon mere allegations 
or denials but must show, by documents, affidavits, applicable 
precedent, or other appropriate materials, that there is a genuine issue 
to be determined at the hearing.
    (c) Decision. If all issues are decided by summary judgment, no 
hearing will be held and the Administrative Law Judge shall prepare a 
decision in accordance with Sec.  2423.34. If summary judgment is 
denied, or if partial summary judgment is granted, the Administrative 
Law Judge shall issue an opinion and order, subject to interlocutory 
appeal as provided in Sec.  2423.31(c) of this subchapter, and the 
hearing shall proceed as necessary.



Sec.  2423.28  Subpoenas.

    (a) When necessary. Where the parties are in agreement that the 
appearance of witnesses or the production of documents is necessary, and 
such witnesses agree to appear, no subpoena need be sought.
    (b) Requests for subpoenas. A request for a subpoena by any person, 
as defined in 5 U.S.C. 7103(a)(1), shall be in writing and filed with 
the Office of Administrative Law Judges not less than 10 days prior to 
the hearing, or with the Administrative Law Judge during the hearing. 
Requests for subpoenas made less than 10 days prior to the hearing shall 
be granted on sufficient explanation of why the request was not timely 
filed.
    (c) Subpoena procedures. The Office of Administrative Law Judges, or 
any

[[Page 460]]

other employee of the Authority designated by the Authority, as 
appropriate, shall furnish the requester the subpoenas sought, provided 
the request is timely made. Requests for subpoenas may be made ex parte. 
Completion of the specific information in the subpoena and the service 
of the subpoena are the responsibility of the party on whose behalf the 
subpoena was issued.
    (d) Service of subpoena. A subpoena may be served by any person who 
is at least 18 years old and who is not a party to the proceeding. The 
person who served the subpoena must certify that he or she did so:
    (1) By delivering it to the witness in person,
    (2) By registered or certified mail, or
    (3) By delivering the subpoena to a responsible person (named in the 
document certifying the delivery) at the residence or place of business 
(as appropriate) of the person for whom the subpoena was intended. The 
subpoena shall show on its face the name and address of the party on 
whose behalf the subpoena was issued.
    (e)(1) Petition to revoke subpoena. Any person served with a 
subpoena who does not intend to comply shall, within 5 days after the 
date of service of the subpoena upon such person, petition in writing to 
revoke the subpoena. A copy of any petition to revoke a subpoena shall 
be served on the party on whose behalf the subpoena was issued. Such 
petition to revoke, if made prior to the hearing, and a written 
statement of service, shall be filed with the Office of Administrative 
Law Judges for ruling. A petition to revoke a subpoena filed during the 
hearing, and a written statement of service, shall be filed with the 
Administrative Law Judge.
    (2) The Administrative Law Judge, or any other employee of the 
Authority designated by the Authority, as appropriate, shall revoke the 
subpoena if the person or evidence, the production of which is required, 
is not material and relevant to the matters under investigation or in 
question in the proceedings, or the subpoena does not describe with 
sufficient particularity the evidence the production of which is 
required, or if for any other reason sufficient in law the subpoena is 
invalid. The Administrative Law Judge, or any other employee of the 
Authority designated by the Authority, as appropriate, shall state the 
procedural or other ground for the ruling on the petition to revoke. The 
petition to revoke, any answer thereto, and any ruling thereon shall not 
become part of the official record except upon the request of the party 
aggrieved by the ruling.
    (f) Failure to comply. Upon the failure of any person to comply with 
a subpoena issued and upon the request of the party on whose behalf the 
subpoena was issued, the Solicitor of the Authority shall institute 
proceedings on behalf of such party in the appropriate district court 
for the enforcement thereof, unless to do so would be inconsistent with 
law and the Federal Service Labor-Management Relations Statute.



Sec.  2423.29  [Reserved]



                      Subpart C_Hearing Procedures



Sec.  2423.30  General rules.

    (a) Open hearing. The hearing shall be open to the public unless 
otherwise ordered by the Administrative Law Judge.
    (b) Administrative Procedure Act. The hearing shall, to the extent 
practicable, be conducted in accordance with 5 U.S.C. 554-557, and other 
applicable provisions of the Administrative Procedure Act.
    (c) Rights of parties. A party shall have the right to appear at any 
hearing in person, by counsel, or by other representative; to examine 
and cross-examine witnesses; to introduce into the record documentary or 
other relevant evidence; and to submit rebuttal evidence, except that 
the participation of any party shall be limited to the extent prescribed 
by the Administrative Law Judge.
    (d) Objections. Objections are oral or written complaints concerning 
the conduct of a hearing. Any objection not raised to the Administrative 
Law Judge shall be deemed waived.
    (e) Oral argument. Any party shall be entitled, upon request, to a 
reasonable period prior to the close of the hearing for oral argument, 
which shall be included in the official transcript of the hearing.

[[Page 461]]

    (f) Official transcript. An official reporter shall make the only 
official transcript of such proceedings. Copies of the transcript may be 
examined in the appropriate Regional Office during normal working hours. 
Parties desiring a copy of the transcript shall make arrangements for a 
copy with the official hearing reporter.



Sec.  2423.31  Powers and duties of the Administrative Law Judge 
at the hearing.

    (a) Conduct of hearing. The Administrative Law Judge shall conduct 
the hearing in a fair, impartial, and judicial manner, taking action as 
needed to avoid unnecessary delay and maintain order during the 
proceedings. The Administrative Law Judge may take any action necessary 
to schedule, conduct, continue, control, and regulate the hearing, 
including ruling on motions and taking official notice of material facts 
when appropriate. No provision of these regulations shall be construed 
to limit the powers of the Administrative Law Judge provided by 5 U.S.C. 
556, 557, and other applicable provisions of the Administrative 
Procedure Act.
    (b) Evidence. The Administrative Law Judge shall receive evidence 
and inquire fully into the relevant and material facts concerning the 
matters that are the subject of the hearing. The Administrative Law 
Judge may exclude any evidence that is immaterial, irrelevant, unduly 
repetitious, or customarily privileged. Rules of evidence shall not be 
strictly followed.
    (c) Interlocutory appeals. Motions for an interlocutory appeal shall 
be filed in writing with the Administrative Law Judge within 5 days 
after the date of the contested ruling. The motion shall state why 
interlocutory review is appropriate, and why the Authority should modify 
or reverse the contested ruling.
    (1) The Judge shall grant the motion and certify the contested 
ruling to the Authority if:
    (i) The ruling involves an important question of law or policy about 
which there is substantial ground for difference of opinion; and
    (ii) Immediate review will materially advance completion of the 
proceeding, or the denial of immediate review will cause undue harm to a 
party or the public.
    (2) If the motion is granted, the Judge or Authority may stay the 
hearing during the pendency of the appeal. If the motion is denied, 
exceptions to the contested ruling may be filed in accordance with Sec.  
2423.40 of this subchapter after the Judge issues a decision and 
recommended order in the case.
    (d) Bench decisions. Upon joint motion of the parties, the 
Administrative Law Judge may issue an oral decision at the close of the 
hearing when, in the Judge's discretion, the nature of the case so 
warrants. By so moving, the parties waive their right to file 
posthearing briefs with the Administrative Law Judge, pursuant to Sec.  
2423.33. If the decision is announced orally, it shall satisfy the 
requirements of Sec.  2423.34(a)(1)-(5) and a copy thereof, excerpted 
from the transcript, together with any supplementary matter the judge 
may deem necessary to complete the decision, shall be transmitted to the 
Authority, in accordance with Sec.  2423.34(b), and furnished to the 
parties in accordance with Sec.  2429.12 of this subchapter.
    (e) Settlements after the opening of the hearing. As set forth in 
Sec.  2423.25(a), settlements may be either informal or formal.
    (1) Informal settlement procedure: Judge's approval of withdrawal. 
If the Charging Party and the Respondent enter into an informal 
settlement agreement that is accepted by the Regional Director, the 
Regional Director may request the Administrative Law Judge for 
permission to withdraw the complaint and, having been granted such 
permission, shall withdraw the complaint and approve the informal 
settlement between the Charging Party and Respondent. If the Charging 
Party fails or refuses to become a party to an informal settlement 
agreement offered by the Respondent, and the Regional Director concludes 
that the offered settlement will effectuate the policies of the Federal 
Service Labor-Management Relations Statute, the Regional Director shall 
enter into the agreement with the Respondent and shall, if

[[Page 462]]

granted permission by the Administrative Law Judge, withdraw the 
complaint. The Charging Party then may obtain a review of the Regional 
Director's decision as provided in subpart A of this part.
    (2) Formal settlement procedure: Judge's approval of settlement. If 
the Charging Party and the Respondent enter into a formal settlement 
agreement that is accepted by the Regional Director, the Regional 
Director may request the Administrative Law Judge to approve such formal 
settlement agreement, and upon such approval, to transmit the agreement 
to the Authority for approval. If the Charging Party fails or refuses to 
become a party to a formal settlement agreement offered by the 
Respondent, and the Regional Director concludes that the offered 
settlement will effectuate the policies of the Federal Service Labor-
Management Relations Statute, the agreement shall be between the 
Respondent and the Regional Director. After the Charging Party is given 
an opportunity to state on the record or in writing the reasons for 
opposing the formal settlement, the Regional Director may request the 
Administrative Law Judge to approve such formal settlement agreement, 
and upon such approval, to transmit the agreement to the Authority for 
approval.



Sec.  2423.32  Burden of proof before the Administrative Law Judge.

    The General Counsel shall present the evidence in support of the 
complaint and have the burden of proving the allegations of the 
complaint by a preponderance of the evidence. The Respondent shall have 
the burden of proving any affirmative defenses that it raises to the 
allegations in the complaint.



Sec.  2423.33  Posthearing briefs.

    Except when bench decisions are issued pursuant to Sec.  2423.31(d), 
posthearing briefs may be filed with the Administrative Law Judge within 
a time period set by the Judge, not to exceed 30 days from the close of 
the hearing, unless otherwise directed by the judge, and shall satisfy 
the filing and service requirements of part 2429 of this subchapter. 
Reply briefs shall not be filed absent permission of the Judge. Motions 
to extend the filing deadline or for permission to file a reply brief 
shall be filed in accordance with Sec.  2423.21.



Sec.  2423.34  Decision and record.

    (a) Recommended decision. Except when bench decisions are issued 
pursuant to Sec.  2423.31(d), the Administrative Law Judge shall prepare 
a written decision expeditiously in every case. All written decisions 
shall be served in accordance with Sec.  2429.12 of this subchapter. The 
decision shall set forth:
    (1) A statement of the issues;
    (2) Relevant findings of fact;
    (3) Conclusions of law and reasons therefor;
    (4) Credibility determinations as necessary; and
    (5) A recommended disposition or order.
    (b) Transmittal to Authority. The Judge shall transmit the decision 
and record to the Authority. The record shall include the charge, 
complaint, service sheet, answer, motions, rulings, orders, prehearing 
conference summaries, stipulations, objections, depositions, 
interrogatories, exhibits, documentary evidence, basis for any sanctions 
ruling, official transcript of the hearing, briefs, and any other 
filings or submissions made by the parties.



Sec. Sec.  2423.35-2423.39  [Reserved]



   Subpart D_Post-Transmission and Exceptions to Authority Procedures



Sec.  2423.40  Exceptions; oppositions and cross-exceptions; 
oppositions to cross-exceptions; waiver.

    (a) Exceptions. Any exceptions to the Administrative Law Judge's 
decision must be filed with the Authority within 25 days after the date 
of service of the Judge's decision. Exceptions shall satisfy the filing 
and service requirements of part 2429 of this subchapter. Exceptions 
shall consist of the following:
    (1) The specific findings, conclusions, determinations, rulings, or 
recommendations being challenged; the grounds relied upon; and the 
relief sought.

[[Page 463]]

    (2) Supporting arguments, which shall set forth, in order: all 
relevant facts with specific citations to the record; the issues to be 
addressed; and a separate argument for each issue, which shall include a 
discussion of applicable law. Attachments to briefs shall be separately 
paginated and indexed as necessary.
    (3) Exceptions containing 25 or more pages shall include a table of 
legal authorities cited.
    (b) Oppositions and cross-exceptions. Unless otherwise directed or 
approved by the Authority, oppositions to exceptions, cross-exceptions, 
and oppositions to cross-exceptions may be filed with the Authority 
within 20 days after the date of service of the exceptions or cross-
exceptions, respectively. Oppositions shall state the specific 
exceptions being opposed. Oppositions and cross-exceptions shall be 
subject to the same requirements as exceptions set out in paragraph (a) 
of this section.
    (c) Reply briefs. Reply briefs shall not be filed absent prior 
permission of the Authority.
    (d) Waiver. Any exception not specifically argued shall be deemed to 
have been waived.

[62 FR 40916, July 31, 1997, as amended at 77 FR 26433, May 4, 2012]



Sec.  2423.41  Action by the Authority; compliance with Authority decisions 
and orders.

    (a) Authority decision; no exceptions filed. In the absence of the 
filing of exceptions within the time limits established in Sec.  
2423.40, the findings, conclusions, and recommendations in the decision 
of the Administrative Law Judge shall, without precedential 
significance, become the findings, conclusions, decision and order of 
the Authority, and all objections and exceptions to the rulings and 
decision of the Administrative Law Judge shall be deemed waived for all 
purposes. Failure to comply with any filing requirement established in 
Sec.  2423.40 may result in the information furnished being disregarded.
    (b) Authority decision; exceptions filed. Whenever exceptions are 
filed in accordance with Sec.  2423.40, the Authority shall issue a 
decision affirming or reversing, in whole or in part, the decision of 
the Administrative Law Judge or disposing of the matter as is otherwise 
deemed appropriate.
    (c) Authority's order. Upon finding a violation, the Authority 
shall, in accordance with 5 U.S.C. 7118(a)(7), issue an order directing 
the violator, as appropriate, to cease and desist from any unfair labor 
practice, or to take any other action to effectuate the purposes of the 
Federal Service Labor-Management Relations Statute. With regard to 
employees covered by 3 U.S.C. 431, upon finding a violation, the 
Authority's order may not include an order of reinstatement, in 
accordance with 3 U.S.C. 431(a).
    (d) Dismissal. Upon finding no violation, the Authority shall 
dismiss the complaint.
    (e) Report of compliance. After the Authority issues an order, the 
Respondent shall, within the time specified in the order, provide to the 
appropriate Regional Director a report regarding what compliance actions 
have been taken. Upon determining that the Respondent has not complied 
with the Authority's order, the Regional Director shall refer the case 
to the Authority for enforcement or take other appropriate action.

[62 FR 40916, July 31, 1997, as amended at 63 FR 46158, Aug. 31, 1998]



Sec.  2423.42  Backpay proceedings.

    After the entry of an Authority order directing payment of backpay, 
or the entry of a court decree enforcing such order, if it appears to 
the Regional Director that a controversy exists between the Authority 
and a Respondent regarding backpay that cannot be resolved without a 
formal proceeding, the Regional Director may issue and serve on all 
parties a notice of hearing before an Administrative Law Judge to 
determine the backpay amount. The notice of hearing shall set forth the 
specific backpay issues to be resolved. The Respondent shall, within 20 
days after the service of a notice of hearing, file an answer in 
accordance with Sec.  2423.20. After the issuance of a notice of 
hearing, the procedures provided in subparts B, C, and D of this part 
shall be followed as applicable.

[[Page 464]]



Sec. Sec.  2423.43-2423.49  [Reserved]



PART 2424_NEGOTIABILITY PROCEEDINGS--Table of Contents



          Subpart A_Applicability of This Part and Definitions

Sec.
2424.1 Applicability of this part.
2424.2 Definitions.
2424.3-2424.9 [Reserved]

   Subpart B_Alternative Dispute Resolution; Requesting and Providing 
               Allegations Concerning the Duty To Bargain

2424.10 Collaboration and Alternative Dispute Resolution Program.
2424.11 Requesting and providing written allegations concerning the duty 
          to bargain.
2424.12-2424.19 [Reserved]

  Subpart C_Filing and Responding to a Petition for Review; Conferences

2424.20 Who may file a petition for review.
2424.21 Time limits for filing a petition for review.
2424.22 Exclusive representative's petition for review; purpose; 
          content; severance; service.
2424.23 Post-petition conferences; conduct and record.
2424.24 Agency's statement of position; purpose; time limits; content; 
          severance; service.
2424.25 Response of the exclusive representative; purpose; time limits; 
          content; severance; service.
2424.26 Agency's reply; purpose; time limits; content; service.
2424.27 Additional submissions to the Authority.
2424.28-2424.29 [Reserved]

               Subpart D_Processing a Petition for Review

2424.30 Procedure through which the petition for review will be 
          resolved.
2424.31 Resolution of disputed issues of material fact; hearings.
2424.32 Parties' responsibilities; failure to raise, support, and/or 
          respond to arguments; failure to participate in conferences 
          and/or respond to Authority orders.
2424.33-2424.39 [Reserved]

                      Subpart E_Decision and Order

2424.40 Authority decision and order.
2424.41 Compliance.
2424.42-2424.49 [Reserved]

Subpart F_Criteria for Determining Compelling Need for Agency Rules and 
                               Regulations

2424.50 Illustrative criteria.
2424.51-2424.59 [Reserved]

    Authority: 5 U.S.C. 7134.

    Source: 63 FR 66413, Dec. 2, 1998, unless otherwise noted.



          Subpart A_Applicability of This Part and Definitions



Sec.  2424.1  Applicability of this part.

    This part applies to all petitions for review filed on or after June 
4, 2012.

[77 FR 26433, May 4, 2012]



Sec.  2424.2  Definitions.

    In this part, the following definitions apply:
    (a) Bargaining obligation dispute means a disagreement between an 
exclusive representative and an agency concerning whether, in the 
specific circumstances involved in a particular case, the parties are 
obligated to bargain over a proposal that otherwise may be negotiable. 
Examples of bargaining obligation disputes include disagreements between 
an exclusive representative and an agency concerning agency claims that:
    (1) A proposal concerns a matter that is covered by a collective 
bargaining agreement; and
    (2) Bargaining is not required over a change in bargaining unit 
employees' conditions of employment because the effect of the change is 
de minimis.
    (b) Collaboration and Alternative Dispute Resolution Program refers 
to the Federal Labor Relations Authority's program that assists parties 
in reaching agreements to resolve disputes.
    (c) Negotiability dispute means a disagreement between an exclusive 
representative and an agency concerning the legality of a proposal or 
provision. A negotiability dispute exists when an exclusive 
representative disagrees with an agency contention that (without regard 
to any bargaining obligation dispute) a proposal is outside the duty to 
bargain, including disagreement with an agency contention that a 
proposal is

[[Page 465]]

bargainable only at its election. A negotiability dispute also exists 
when an exclusive representative disagrees with an agency head's 
disapproval of a provision as contrary to law. A negotiability dispute 
may exist where there is no bargaining obligation dispute. Examples of 
negotiability disputes include disagreements between an exclusive 
representative and an agency concerning whether a proposal or provision:
    (1) Affects a management right under 5 U.S.C. 7106(a);
    (2) Constitutes a procedure or appropriate arrangement, within the 
meaning of 5 U.S.C. 7106(b)(2) and (3), respectively; and
    (3) Is consistent with a Government-wide regulation.
    (d) Petition for review means an appeal filed with the Authority by 
an exclusive representative requesting resolution of a negotiability 
dispute. An appeal that concerns only a bargaining obligation dispute 
may not be resolved under this part.
    (e) Proposal means any matter offered for bargaining that has not 
been agreed to by the parties. If a petition for review concerns more 
than one proposal, then the term includes each proposal concerned.
    (f) Provision means any matter that has been disapproved by the 
agency head on review pursuant to 5 U.S.C. 7114(c). If a petition for 
review concerns more than one provision, then the term includes each 
provision concerned.
    (g) Service means the delivery of copies of documents filed with the 
Authority to the other party's principal bargaining representative and, 
in the case of an exclusive representative, also to the head of the 
agency. Compliance with part 2429 of this subchapter is required.
    (h) Severance means the division of a proposal or provision into 
separate parts having independent meaning, for the purpose of 
determining whether any of the separate parts is within the duty to 
bargain or is contrary to law. In effect, severance results in the 
creation of separate proposals or provisions. Severance applies when 
some parts of the proposal or provision are determined to be outside the 
duty to bargain or contrary to law.
    (i) Written allegation concerning the duty to bargain means an 
agency allegation that the duty to bargain in good faith does not extend 
to a proposal.



Sec. Sec.  2424.3-2424.9  [Reserved]



   Subpart B_Alternative Dispute Resolution; Requesting and Providing 
               Allegations Concerning the Duty To Bargain



Sec.  2424.10  Collaboration and Alternative Dispute Resolution Program.

    Where an exclusive representative and an agency are unable to 
resolve disputes that arise under this part, they may request assistance 
from the Collaboration and Alternative Dispute Resolution Program 
(CADR). Upon request, and as agreed upon by the parties, CADR 
representatives will attempt to assist the parties to resolve these 
disputes. Parties seeking information or assistance under this part may 
call or write the CADR Office at (202) 218-7969, 1400 K Street, NW., 
Washington, DC 20424-0001. A brief summary of CADR activities is 
available on the Internet at www.flra.gov.

[68 FR 10953, Mar. 7, 2003, as amended at 68 FR 23885, May 6, 2003]



Sec.  2424.11  Requesting and providing written allegations 
concerning the duty to bargain.

    (a) General. An exclusive representative may file a petition for 
review after receiving a written allegation concerning the duty to 
bargain from the agency. An exclusive representative also may file a 
petition for review if it requests that the agency provide it with a 
written allegation concerning the duty to bargain and the agency does 
not respond to the request within ten (10) days.
    (b) Agency allegation in response to request. The agency's 
allegation in response to the exclusive representative's request must be 
in writing and must be served in accord with Sec.  2424.2(g).
    (c) Unrequested agency allegation. If an agency provides an 
exclusive representative with an unrequested written allegation 
concerning the duty to bargain, then the exclusive representative may 
either file a petition for review under this part, or continue to 
bargain and

[[Page 466]]

subsequently request in writing a written allegation concerning the duty 
to bargain, if necessary.



Sec. Sec.  2424.12-2424.19  [Reserved]



  Subpart C_Filing and Responding to a Petition for Review; Conferences



Sec.  2424.20  Who may file a petition for review.

    A petition for review may be filed by an exclusive representative 
that is a party to the negotiations.



Sec.  2424.21  Time limits for filing a petition for review.

    (a) A petition for review must be filed within fifteen (15) days 
after the date of service of either:
    (1) An agency's written allegation that the exclusive 
representative's proposal is not within the duty to bargain, or
    (2) An agency head's disapproval of a provision.
    (b) If the agency has not served a written allegation on the 
exclusive representative within ten (10) days after the agency's 
principal bargaining representative has received a written request for 
such allegation, as provided in Sec.  2424.11(a), then the petition may 
be filed at any time.



Sec.  2424.22  Exclusive representative's petition for review; purpose; 
content; severance; service.

    (a) Purpose. The purpose of a petition for review is to initiate a 
negotiability proceeding and provide the agency with notice that the 
exclusive representative requests a decision from the Authority that a 
proposal or provision is within the duty to bargain or not contrary to 
law, respectively. As more fully explained in paragraph (b) of this 
section, the exclusive representative is required in the petition for 
review to, among other things, inform the Authority of the exact wording 
and meaning of the proposal or provision as well as how it is intended 
to operate, explain technical or unusual terms, and provide copies of 
materials that support the exclusive representative's position.
    (b) Content. You must file a petition for review on a form that the 
Authority has provided for that purpose, or in a substantially similar 
format. You meet this requirement if you file your petition 
electronically through use of the eFiling system on the FLRA's Web site 
at www.flra.gov. That Web site also provides copies of petition forms. 
You must date the petition, unless you file it electronically through 
use of the FLRA's eFiling system. And, regardless of how you file the 
petition, you must ensure that it includes the following:
    (1) The exact wording and explanation of the meaning of the proposal 
or provision, including an explanation of special terms or phrases, 
technical language, or other words that are not in common usage, as well 
as how the proposal or provision is intended to work;
    (2) Specific citation to any law, rule, regulation, section of a 
collective bargaining agreement, or other authority that you rely on in 
your argument or that you reference in the proposal or provision, and a 
copy of any such material that the Authority cannot easily access (which 
you may upload as attachments if you file the petition electronically 
through use of the FLRA's eFiling system);
    (3) A statement as to whether the proposal or provision is also 
involved in an unfair labor practice charge under part 2423 of this 
subchapter, a grievance pursuant to the parties' negotiated grievance 
procedure, or an impasse procedure under part 2470 of this subchapter, 
and whether any other petition for review has been filed concerning a 
proposal or provision arising from the same bargaining or the same 
agency head review; and
    (4) Any request for a hearing before the Authority and the reasons 
supporting such request.
    (c) Severance. The exclusive representative may, but is not required 
to, include in the petition for review a statement as to whether it 
requests severance of a proposal or provision. If severance is requested 
in the petition for review, then the exclusive representative must 
support its request

[[Page 467]]

with an explanation of how each severed portion of the proposal or 
provision may stand alone, and how such severed portion would operate. 
The explanation and argument in support of the severed portion(s) must 
meet the same requirements for information set forth in paragraph (b) of 
this section.
    (d) Service. The petition for review, including all attachments, 
must be served in accord with Sec.  2424.2(g).

[63 FR 66413, Dec. 2, 1998, as amended at 74 FR 51745, Oct. 8, 2009; 77 
FR 26433, May 4, 2012]



Sec.  2424.23  Post-petition conferences; conduct and record.

    (a) Timing of post-petition conference. On receipt of a petition for 
review involving a proposal or a provision, a representative of the FLRA 
will, where appropriate, schedule a post-petition conference to be 
conducted by telephone or in person. All reasonable efforts will be made 
to schedule and conduct the conference within ten (10) days after 
receipt of the petition for review.
    (b) Conduct of conference. The post-petition conference will be 
conducted with representatives of the exclusive representative and the 
agency, who must be prepared and authorized to discuss, clarify and 
resolve matters including the following:
    (1) The meaning of the proposal or provision in dispute;
    (2) Any disputed factual issue(s);
    (3) Negotiability dispute objections and bargaining obligation 
claims regarding the proposal or provision;
    (4) Whether the proposal or provision is also involved in an unfair 
labor practice charge under part 2423 of this subchapter, in a grievance 
under the parties' negotiated grievance procedure, or an impasse 
procedure under part 2470 of this subchapter; and
    (5) Whether an extension of the time limits for filing the agency's 
statement of position and any subsequent filings is requested. The FLRA 
representative may, on determining that it will effectuate the purposes 
of the Federal Service Labor-Management Relations Statute, 5 U.S.C. 7101 
et seq., and this part, extend such time limits.
    (c) Record of the conference. At the post-petition conference, or 
after it has been completed, the representative of the FLRA will prepare 
and serve on the parties a written statement that includes whether the 
parties agree on the meaning of the disputed proposal or provision, the 
resolution of any disputed factual issues, and any other appropriate 
matters.



Sec.  2424.24  Agency's statement of position; purpose; time limits; 
content; severance; service.

    (a) Purpose. The purpose of an agency statement of position is to 
inform the Authority and the exclusive representative why a proposal or 
provision is not within the duty to bargain or contrary to law, 
respectively. As more fully explained in paragraph (c) of this section, 
the agency is required in the statement of position to, among other 
things, set forth its understanding of the proposal or provision, state 
any disagreement with the facts, arguments, or meaning of the proposal 
or provision set forth in the exclusive representative's petition for 
review, and supply all arguments and authorities in support of its 
position.
    (b) Time limit for filing. Unless the time limit for filing has been 
extended pursuant to Sec.  2424.23 or part 2429 of this subchapter, the 
agency must file its statement of position within thirty (30) days after 
the date the head of the agency receives a copy of the petition for 
review.
    (c) Content. You must file your statement of position on a form that 
the Authority has provided for that purpose, or in a substantially 
similar format. You meet this requirement if you file your statement 
electronically through use of the eFiling system on the FLRA's Web site 
at www.flra.gov. That Web site also provides copies of statement forms. 
You must date your statement, unless you file it electronically through 
use of the eFiling system. And, regardless of how you file your 
statement, your statement must:
    (1) Withdraw either:
    (i) The allegation that the duty to bargain in good faith does not 
extend to the exclusive representative's proposal, or
    (ii) The disapproval of the provision under 5 U.S.C. 7114(c); or

[[Page 468]]

    (2) Set forth in full your position on any matters relevant to the 
petition that you want the Authority to consider in reaching its 
decision, including: A statement of the arguments and authorities 
supporting any bargaining obligation or negotiability claims; any 
disagreement with claims that the exclusive representative made in the 
petition for review; specific citation to any law, rule, regulation, 
section of a collective bargaining agreement, or other authority that 
you rely on; and a copy of any such material that the Authority may not 
easily access (which you may upload as attachments if you file your 
statement of position electronically through use of the FLRA's eFiling 
system). Your statement of position must also include the following:
    (i) If different from the exclusive representative's position, an 
explanation of the meaning the agency attributes to the proposal or 
provision and the reasons for disagreeing with the exclusive 
representative's explanation of meaning;
    (ii) If different from the exclusive representative's position, an 
explanation of how the proposal or provision would work, and the reasons 
for disagreeing with the exclusive representative's explanation;
    (3) A statement as to whether the proposal or provision is also 
involved in an unfair labor practice charge under part 2423 of this 
subchapter, a grievance pursuant to the parties' negotiated grievance 
procedure, or an impasse procedure under part 2470 of this subchapter, 
and whether any other petition for review has been filed concerning a 
proposal or provision arising from the same bargaining or the same 
agency head review; and
    (4) Any request for a hearing before the Authority and the reasons 
supporting such request.
    (d) Severance. If the exclusive representative has requested 
severance in the petition for review, and if the agency opposes the 
exclusive representative's request for severance, then the agency must 
explain with specificity why severance is not appropriate.
    (e) Service. A copy of the agency's statement of position, including 
all attachments, must be served in accord with Sec.  2424.2(g).

[63 FR 66413, Dec. 2, 1998, as amended at 74 FR 51745, Oct. 8, 2009; 77 
FR 26434, May 4, 2012]



Sec.  2424.25  Response of the exclusive representative; purpose; time limits; 
content; severance; service.

    (a) Purpose. The purpose of the exclusive representative's response 
is to inform the Authority and the agency why, despite the agency's 
arguments in its statement of position, the proposal or provision is 
within the duty to bargain or not contrary to law, respectively, and 
whether the union disagrees with any facts or arguments in the agency's 
statement of position. As more fully explained in paragraph (c) of this 
section, the exclusive representative is required in its response to, 
among other things, state why the proposal or provision does not 
conflict with any law, or why it falls within an exception to management 
rights, including permissive subjects under 5 U.S.C. 7106(b)(1), and 
procedures and appropriate arrangements under section 7106(b) (2) and 
(3). Another purpose of the response is to permit the exclusive 
representative to request the Authority to sever portions of the 
proposal or provision and to explain why and how it can be done.
    (b) Time limit for filing. Unless the time limit for filing has been 
extended pursuant to Sec.  2424.23 or part 2429 of this subchapter, 
within fifteen (15) days after the date the exclusive representative 
receives a copy of an agency's statement of position, the exclusive 
representative must file a response.
    (c) Content. You must file your response on a form that the 
Authority has provided for that purpose, or in a substantially similar 
format. You meet this requirement if you file your response 
electronically through use of the eFiling system on the FLRA's Web site 
at www.flra.gov. That Web site also provides copies of response forms. 
With the exception of a request for severance under paragraph (d) of 
this section, you must limit your response to the matters that the 
agency raised in its statement of position. You must date your response, 
unless you file it electronically through use of the FLRA's

[[Page 469]]

eFiling system. And, regardless of how you file your response, you must 
ensure that it includes the following:
    (1) Any disagreement with the agency's bargaining obligation or 
negotiability claims. You must: State the arguments and authorities 
supporting your opposition to any agency argument; include specific 
citation to any law, rule, regulation, section of a collective 
bargaining agreement, or other authority on which you rely; and provide 
a copy of any such material that the Authority may not easily access 
(which you may upload as attachments if you file your response 
electronically through use of the FLRA's eFiling system). You are not 
required to repeat arguments that you made in your petition for review. 
If not included in the petition for review, then you must state the 
arguments and authorities supporting any assertion that the proposal or 
provision does not affect a management right under 5 U.S.C. 7106(a), and 
any assertion that an exception to management rights applies, including:
    (i) Whether and why the proposal or provision concerns a matter 
negotiable at the election of the agency under 5 U.S.C. 7106(b)(1);
    (ii) Whether and why the proposal or provision constitutes a 
negotiable procedure as set forth in 5 U.S.C. 7106(b)(2);
    (iii) Whether and why the proposal or provision constitutes an 
appropriate arrangement as set forth in 5 U.S.C. 7106(b)(3); and
    (iv) Whether and why the proposal or provision enforces an 
``applicable law,'' within the meaning of 5 U.S.C. 7106(a)(2).
    (2) Any allegation that agency rules or regulations relied on in the 
agency's statement of position violate applicable law, rule, regulation 
or appropriate authority outside the agency; that the rules or 
regulations were not issued by the agency or by any primary national 
subdivision of the agency, or otherwise are not applicable to bar 
negotiations under 5 U.S.C. 7117(a)(3); or that no compelling need 
exists for the rules or regulations to bar negotiations.
    (d) Severance. If not requested in the petition for review, or if 
the exclusive representative wishes to modify the request in the 
petition for review, the exclusive representative may request severance 
in its response. The exclusive representative must support its request 
with an explanation of how the severed portion(s) of the proposal or 
provision may stand alone, and how such severed portion(s) would 
operate. The exclusive representative also must respond to any agency 
arguments regarding severance made in the agency's statement of 
position. The explanation and argument in support of the severed 
portion(s) must meet the same requirements for specific information set 
forth in paragraph (c) of this section.
    (e) Service. A copy of the response of the exclusive representative, 
including all attachments, must be served in accord with Sec.  
2424.2(g).

[63 FR 66413, Dec. 2, 1998, as amended at 74 FR 51745, Oct. 8, 2009; 77 
FR 26434, May 4, 2012]



Sec.  2424.26  Agency's reply; purpose; time limits; content; service.

    (a) Purpose. The purpose of the agency's reply is to inform the 
Authority and the exclusive representative whether and why it disagrees 
with any facts or arguments made for the first time in the exclusive 
representative's response. As more fully explained in paragraph (c) of 
this section, the Agency is required in the reply to, among other 
things, provide the reasons why the proposal or provision does not fit 
within any exceptions to management rights that were asserted by the 
exclusive representative in its response, and to explain why severance 
of the proposal or provision is not appropriate.
    (b) Time limit for filing. Unless the time limit for filing has been 
extended pursuant to Sec.  2424.23 or part 2429 of this subchapter, 
within fifteen (15) days after the date the agency receives a copy of 
the exclusive representative's response to the agency's statement of 
position, the agency may file a reply.
    (c) Content. You must file your reply on a form that the Authority 
has provided for that purpose, or in a substantially similar format. You 
meet this requirement if you file your reply electronically through use 
of the eFiling system on the FLRA's Web site at www.flra.gov. That Web 
site also provides copies of reply forms. You must

[[Page 470]]

limit your reply to matters that the exclusive representative raised for 
the first time in its response. Your reply must: State the arguments and 
authorities supporting your position; cite with specificity any law, 
rule, regulation, section of a collective bargaining agreement, or other 
authority that you rely on; and provide a copy of any material that the 
Authority may not easily access (which you may upload as attachments if 
you file your reply electronically through use of the FLRA's eFiling 
system). You must date your reply, unless you file it electronically 
through use of the FLRA's eFiling system. And, regardless of how you 
file your reply, you must ensure that it includes the following:
    (1) Any disagreement with the exclusive representative's assertion 
that an exception to management rights applies, including:
    (i) Whether and why the proposal or provision concerns a matter 
included in section 7106(b)(1) of the Federal Service Labor-Management 
Relations Statute;
    (ii) Whether and why the proposal or provision does not constitute a 
negotiable procedure as set forth in section 7106(b)(2) of the Federal 
Service Labor-Management Relations Statute;
    (iii) Whether and why the proposal or provision does not constitute 
an appropriate arrangement as set forth in section 7106(b)(3) of the 
Federal Service Labor-Management Relations Statute;
    (iv) Whether and why the proposal or provision does not enforce an 
``applicable law,'' within the meaning of section 7106(a)(2) of the 
Federal Service Labor-Management Relations Statute; and
    (2) Any arguments in reply to an exclusive representative's 
allegation in its response that agency rules or regulations relied on in 
the agency's statement of position violate applicable law, rule, 
regulation or appropriate authority outside the agency; that the rules 
or regulations were not issued by the agency or by any primary national 
subdivision of the agency, or otherwise are not applicable to bar 
negotiations under 5 U.S.C. 7117(a)(3); or that no compelling need 
exists for the rules or regulations to bar negotiations.
    (d) Severance. If the exclusive representative requests severance 
for the first time in its response, or if the request for severance in 
an exclusive representative's response differs from the request in its 
petition for review, and if the agency opposes the exclusive 
representative's request for severance, then the agency must explain 
with specificity why severance is not appropriate.
    (e) Service. A copy of the agency's reply, including all 
attachments, must be served in accord with Sec.  2424.2(g).

[63 FR 66413, Dec. 2, 1998, as amended at 74 FR 51745, Oct. 8, 2009; 77 
FR 26434, May 4, 2012]



Sec.  2424.27  Additional submissions to the Authority.

    The Authority will not consider any submission filed by any party 
other than those authorized under this part, provided however that the 
Authority may, in its discretion, grant permission to file an additional 
submission based on a written request showing extraordinary 
circumstances by any party. The additional submission must be filed 
either with the written request or no later than five (5) days after 
receipt of the Authority's order granting the request. Any opposition to 
the additional submission must be filed within fifteen (15) days after 
the date of the receipt of the additional submission. All documents 
filed under this section must be served in accord with Sec.  2424.2(g).



Sec. Sec.  2424.28-2424.29  [Reserved]



               Subpart D_Processing a Petition for Review



Sec.  2424.30  Procedure through which the petition for review 
will be resolved.

    (a) Exclusive representative has filed related unfair labor practice 
charge or grievance alleging an unfair labor practice. Except for 
proposals or provisions that are the subject of an agency's compelling 
need claim under 5 U.S.C. 7117(a)(2), where an exclusive representative 
files an unfair labor practice charge pursuant to part 2423 of this 
subchapter or a grievance alleging an unfair labor practice under the 
parties' negotiated grievance procedure, and the charge or grievance 
concerns issues

[[Page 471]]

directly related to the petition for review filed pursuant to this part, 
the Authority will dismiss the petition for review. The dismissal will 
be without prejudice to the right of the exclusive representative to 
refile the petition for review after the unfair labor practice charge or 
grievance has been resolved administratively, including resolution 
pursuant to an arbitration award that has become final and binding. No 
later than thirty (30) days after the date on which the unfair labor 
practice charge or grievance is resolved administratively, the exclusive 
representative may refile the petition for review, and the Authority 
will determine whether resolution of the petition is still required.
    (b) Exclusive representative has not filed related unfair labor 
practice charge or grievance alleging an unfair labor practice. Where an 
exclusive representative files only a petition for review under this 
part, the petition will be processed as follows:
    (1) No bargaining obligation dispute exists. Where there is no 
bargaining obligation dispute, the Authority will resolve the petition 
for review under the procedures of this part.
    (2) A bargaining obligation dispute exists. Where a bargaining 
obligation dispute exists in addition to the negotiability dispute, the 
Authority will inform the exclusive representative of any opportunity to 
file an unfair labor practice charge pursuant to part 2423 of this 
subchapter or a grievance under the parties' negotiated grievance 
procedure and, where the exclusive representative pursues either of 
these courses, proceed in accord with paragraph (a) of this section. If 
the exclusive representative does not file an unfair labor practice 
charge or grievance, the Authority will proceed to resolve all disputes 
necessary for disposition of the petition unless, in its discretion, the 
Authority determines that resolving all disputes is not appropriate 
because, for example, resolution of the bargaining obligation dispute 
under this part would unduly delay resolution of the negotiability 
dispute, or the procedures in another, available administrative forum 
are better suited to resolve the bargaining obligation dispute.



Sec.  2424.31  Resolution of disputed issues of material fact; hearings.

    When necessary to resolve disputed issues of material fact in a 
negotiability or bargaining obligation dispute, or when it would 
otherwise aid in decision making, the Authority, or its designated 
representative, may, as appropriate:
    (a) Direct the parties to provide specific documentary evidence;
    (b) Direct the parties to provide answers to specific factual 
questions;
    (c) Refer the matter to a hearing pursuant to 5 U.S.C. 7117(b)(3) 
and/or (c)(5); or
    (d) Take any other appropriate action.



Sec.  2424.32  Parties' responsibilities; failure to raise, support, 
and/or respond to arguments; failure to participate in conferences 
and/or respond to Authority orders.

    (a) Responsibilities of the exclusive representative. The exclusive 
representative has the burden of raising and supporting arguments that 
the proposal or provision is within the duty to bargain, within the duty 
to bargain at the agency's election, or not contrary to law, 
respectively, and, where applicable, why severance is appropriate.
    (b) Responsibilities of the agency. The agency has the burden of 
raising and supporting arguments that the proposal or provision is 
outside the duty to bargain or contrary to law, respectively, and, where 
applicable, why severance is not appropriate.
    (c) Failure to raise, support, and respond to arguments. (1) Failure 
to raise and support an argument will, where appropriate, be deemed a 
waiver of such argument. Absent good cause:
    (i) Arguments that could have been but were not raised by an 
exclusive representative in the petition for review, or made in its 
response to the agency's statement of position, may not be made in this 
or any other proceeding; and
    (ii) Arguments that could have been but were not raised by an agency 
in the statement of position, or made in its reply to the exclusive 
representative's response, may not be raised in this or any other 
proceeding.

[[Page 472]]

    (2) Failure to respond to an argument or assertion raised by the 
other party will, where appropriate, be deemed a concession to such 
argument or assertion.
    (d) Failure to participate in conferences; failure to respond to 
Authority orders. Where a party fails to participate in a post-petition 
conference pursuant to Sec.  2424.23, a direction or proceeding under 
Sec.  2424.31, or otherwise fails to provide timely or responsive 
information pursuant to an Authority order, including an Authority 
procedural order directing the correction of technical deficiencies in 
filing, the Authority may, in addition to those actions set forth in 
paragraph (c) of this section, take any other action that, in the 
Authority's discretion, is deemed appropriate, including dismissal of 
the petition for review, with or without prejudice to the exclusive 
representative's refiling of the petition for review, and granting the 
petition for review and directing bargaining and/or rescission of an 
agency head disapproval under 5 U.S.C. 7114(c), with or without 
conditions.



Sec. Sec.  2424.33-2424.39  [Reserved]



                      Subpart E_Decision and Order



Sec.  2424.40  Authority decision and order.

    (a) Issuance. Subject to the requirements of this part, the 
Authority will expedite proceedings under this part to the extent 
practicable and will issue to the exclusive representative and to the 
agency a written decision, explaining the specific reasons for the 
decision, at the earliest practicable date. The decision will include an 
order, as provided in paragraphs (b) and (c) of this section, but, with 
the exception of an order to bargain, such order will not include 
remedies that could be obtained in an unfair labor practice proceeding 
under 5 U.S.C. 7118(a)(7).
    (b) Cases involving proposals. If the Authority finds that the duty 
to bargain extends to the proposal, or any severable part of the 
proposal, then the Authority will order the agency to bargain on request 
concerning the proposal. If the Authority finds that the duty to bargain 
does not extend to the proposal, then the Authority will dismiss the 
petition for review. If the Authority finds that the proposal is 
bargainable only at the election of the agency, then the Authority will 
so state. If the Authority resolves a negotiability dispute by finding 
that a proposal is within the duty to bargain, but there are unresolved 
bargaining obligation dispute claims, then the Authority will order the 
agency to bargain on request in the event its bargaining obligation 
claims are resolved in a manner that requires bargaining.
    (c) Cases involving provisions. If the Authority finds that a 
provision, or any severable part thereof, is not contrary to law, rule 
or regulation, or is bargainable at the election of the agency, the 
Authority will direct the agency to rescind its disapproval of such 
provision in whole or in part as appropriate. If the Authority finds 
that a provision is contrary to law, rule, or regulation, the Authority 
will dismiss the petition for review as to that provision.



Sec.  2424.41  Compliance.

    The exclusive representative may report to the appropriate Regional 
Director an agency's failure to comply with an order, issued in 
accordance with Sec.  2424.40, that the agency must upon request (or as 
otherwise agreed to by the parties) bargain concerning the proposal or 
that the agency must rescind its disapproval of a provision. The 
exclusive representative must report such failure within a reasonable 
period of time following expiration of the 60-day period under 5 U.S.C. 
7123(a), which begins on the date of issuance of the Authority order. 
If, on referral from the Regional Director, the Authority finds such a 
failure to comply with its order, the Authority will take whatever 
action it deems necessary to secure compliance with its order, including 
enforcement under 5 U.S.C. 7123(b).

[[Page 473]]



Sec. Sec.  2424.42-2424.49  [Reserved]



Subpart F_Criteria for Determining Compelling Need for Agency Rules and 
                               Regulations



Sec.  2424.50  Illustrative criteria.

    A compelling need exists for an agency rule or regulation concerning 
any condition of employment when the agency demonstrates that the rule 
or regulation meets one or more of the following illustrative criteria:
    (a) The rule or regulation is essential, as distinguished from 
helpful or desirable, to the accomplishment of the mission or the 
execution of functions of the agency or primary national subdivision in 
a manner that is consistent with the requirements of an effective and 
efficient government.
    (b) The rule or regulation is necessary to ensure the maintenance of 
basic merit principles.
    (c) The rule or regulation implements a mandate to the agency or 
primary national subdivision under law or other outside authority, which 
implementation is essentially nondiscretionary in nature.



Sec. Sec.  2424.51-2424.59  [Reserved]



PART 2425_REVIEW OF ARBITRATION AWARDS--Table of Contents



Sec.
2425.1 Applicability of this part.
2425.2 Exceptions--who may file; time limits for filing, including 
          determining date of service of arbitration award for the 
          purpose of calculating time limits; procedural and other 
          requirements for filing.
2425.3 Oppositions--who may file; time limits for filing; procedural and 
          other requirements for filing.
2425.4 Content and format of exceptions.
2425.5 Content and format of opposition.
2425.6 Grounds for review; potential dismissal or denial for failure to 
          raise or support grounds.
2425.7 Requests for expedited, abbreviated decisions in certain 
          arbitration matters that do not involve unfair labor 
          practices.
2425.8 Collaboration and Alternative Dispute Resolution Program.
2425.9 Means of clarifying records or disputes.
2425.10 Authority decision.

    Authority: 5 U.S.C. 7134.

    Source: 75 FR 42290, July 21, 2010, unless otherwise noted.



Sec.  2425.1  Applicability of this part.

    This part applies to all arbitration cases in which exceptions are 
filed with the Authority, pursuant to 5 U.S.C. 7122, on or after June 4, 
2012.

[77 FR 26434, May 4, 2012]



Sec.  2425.2  Exceptions--who may file; time limits for filing, 
including determining date of service of arbitration award for the purpose 
of calculating time limits; procedural and other requirements for filing.

    (a) Who may file. Either party to arbitration under the provisions 
of chapter 71 of title 5 of the United States Code may file an exception 
to an arbitrator's award rendered pursuant to the arbitration.
    (b) Timeliness requirements--general. The time limit for filing an 
exception to an arbitration award is thirty (30) days after the date of 
service of the award. This thirty (30)-day time limit may not be 
extended or waived. In computing the thirty (30)-day period, the first 
day counted is the day after, not the day of, service of the arbitration 
award. Example: If an award is served on May 1, then May 2 is counted as 
day 1, and May 31 is day 30; an exception filed on May 31 would be 
timely, and an exception filed on June 1 would be untimely. In order to 
determine the date of service of the award, see the rules set forth in 
subsection (c) of this section, and for additional rules regarding 
computing the filing date, see 5 CFR 2429.21 and 2429.22.
    (c) Methods of service of arbitration award; determining date of 
service of arbitration award for purposes of calculating time limits for 
exceptions. If the parties have reached an agreement as to what is an 
appropriate method(s) of service of the arbitration award, then that 
agreement--whether expressed in a collective bargaining agreement or 
otherwise--is controlling for purposes of calculating the time limit for 
filing exceptions. If the parties have not reached such an agreement, 
then the arbitrator may use any commonly used method--

[[Page 474]]

including, but not limited to, electronic mail (hereinafter ``e-mail''), 
facsimile transmission (hereinafter ``fax''), regular mail, commercial 
delivery, or personal delivery--and the arbitrator's selected method is 
controlling for purposes of calculating the time limit for filing 
exceptions. The following rules apply to determine the date of service 
for purposes of calculating the time limits for filing exceptions, and 
assume that the method(s) of service discussed are either consistent 
with the parties' agreement or chosen by the arbitrator absent such an 
agreement:
    (1) If the award is served by regular mail, then the date of service 
is the postmark date or, if there is no legible postmark, then the date 
of the award; for awards served by regular mail, the excepting party 
will receive an additional five days for filing the exceptions under 5 
CFR 2429.22.
    (2) If the award is served by commercial delivery, then the date of 
service is the date on which the award was deposited with the commercial 
delivery service or, if that date is not indicated, then the date of the 
award; for awards served by commercial delivery, the excepting party 
will receive an additional five days for filing the exceptions under 5 
CFR 2429.22.
    (3) If the award is served by e-mail or fax, then the date of 
service is the date of transmission, and the excepting party will not 
receive an additional five days for filing the exceptions.
    (4) If the award is served by personal delivery, then the date of 
personal delivery is the date of service, and the excepting party will 
not receive an additional five days for filing the exceptions.
    (5) If the award is served by more than one method, then the first 
method of service is controlling when determining the date of service 
for purposes of calculating the time limits for filing exceptions. 
However, if the award is served by e-mail, fax, or personal delivery on 
one day, and by mail or commercial delivery on the same day, the 
excepting party will not receive an additional five days for filing the 
exceptions, even if the award was postmarked or deposited with the 
commercial delivery service before the e-mail or fax was transmitted.
    (d) Procedural and other requirements for filing. Exceptions must 
comply with the requirements set forth in 5 CFR 2429.24 (Place and 
method of filing; acknowledgment), 2429.25 (Number of copies and paper 
size), 2429.27 (Service; statement of service), and 2429.29 (Content of 
filings).



Sec.  2425.3  Oppositions--who may file; time limits for filing; 
procedural and other requirements for filing.

    (a) Who may file. A party to arbitration under the provisions of 
chapter 71 of title 5 of the United States Code may file an opposition 
to an exception that has been filed under Sec.  2425.2 of this part.
    (b) Timeliness requirements. Any opposition must be filed within 
thirty (30) days after the date the exception is served on the opposing 
party. For additional rules regarding computing the filing date, see 5 
CFR 2425.8, 2429.21 and 2429.22.
    (c) Procedural requirements. Oppositions must comply with the 
requirements set forth in 5 CFR 2429.24 (Place and method of filing; 
acknowledgment), 2429.25 (Number of copies and paper size), 2429.27 
(Service; statement of service), and 2429.29 (Content of filings).



Sec.  2425.4  Content and format of exceptions.

    (a) What is required. You must date your exception, unless you file 
it electronically through use of the eFiling system on the FLRA's Web 
site at www.flra.gov. Regardless of how you file your exception, you 
must ensure that it is self-contained and that it sets forth, in full, 
the following:
    (1) A statement of the grounds on which review is requested, as 
discussed in Sec.  2425.6 of this part;
    (2) Arguments in support of the stated grounds, including specific 
references to the record, citations of authorities, and any other 
relevant documentation;
    (3) Legible copies of any documents (which you may upload as 
attachments if you file electronically through use of the FLRA's eFiling 
system) that you reference in the arguments discussed in

[[Page 475]]

paragraph (a)(2) of this section, and that the Authority cannot easily 
access (such as internal agency regulations or provisions of collective 
bargaining agreements);
    (4) Arguments in support of any request for an expedited, 
abbreviated decision within the meaning of Sec.  2425.7 of this part;
    (5) A legible copy of the award of the arbitrator; and
    (6) The arbitrator's name, mailing address, and, if available and 
authorized for use by the arbitrator, the arbitrator's e-mail address or 
facsimile number.
    (b) What is not required. Exceptions are not required to include 
copies of documents that are readily accessible to the Authority, such 
as Authority decisions, decisions of Federal courts, current provisions 
of the United States Code, and current provisions of the Code of Federal 
Regulations.
    (c) What is prohibited. Consistent with 5 CFR 2429.5, an exception 
may not rely on any evidence, factual assertions, arguments (including 
affirmative defenses), requested remedies, or challenges to an awarded 
remedy that could have been, but were not, presented to the arbitrator.
    (d) Format. You may file your exception on an optional form that is 
available on the FLRA's Web site at www.flra.gov, or in any other format 
that is consistent with paragraphs (a) and (c) of this section. You meet 
this requirement if you file your exception electronically through use 
of the FLRA's eFiling system on that Web site. Your failure to use, or 
properly fill out, an Authority-provided form will not, by itself, 
provide a basis for dismissing your exception.

[75 FR 42290, July 21, 2010, as amended at 77 FR 26434, May 4, 2012]



Sec.  2425.5  Content and format of opposition.

    If you choose to file an opposition, then you may file your 
opposition on an optional form that is available on the FLRA's Web site 
at www.flra.gov, or in any other format that is consistent with this 
section. You meet this requirement if you file your opposition 
electronically through use of the FLRA's eFiling system on that Web 
site. Your failure to use, or properly fill out, an Authority-provided 
form will not, by itself, provide a basis for dismissing your 
opposition. If you choose to file an opposition, and you dispute any 
assertions that have been made in the exceptions, then you should 
address those assertions--including any assertions that any evidence, 
factual assertions, arguments (including affirmative defenses), 
requested remedies, or challenges to an awarded remedy were raised 
before the arbitrator. If the excepting party has requested an 
expedited, abbreviated decision under Sec.  2425.7 of this part, then 
you should state whether you support or oppose such a decision and 
provide supporting arguments. You must provide copies of any documents 
upon which you rely (which you may upload as attachments if you file 
your opposition electronically through use of the FLRA's eFiling 
system), unless the Authority can easily access those documents (as 
discussed in Sec.  2425.4(b) of this part) or the excepting party 
provided them with its exceptions.

[77 FR 26435, May 4, 2012]



Sec.  2425.6  Grounds for review; potential dismissal or denial 
for failure to raise or support grounds.

    (a) The Authority will review an arbitrator's award to which an 
exception has been filed to determine whether the award is deficient--
    (1) Because it is contrary to any law, rule or regulation; or
    (2) On other grounds similar to those applied by Federal courts in 
private sector labor-management relations.
    (b) If a party argues that an award is deficient on private-sector 
grounds under paragraph (a)(2) of this section, then the excepting party 
must explain how, under standards set forth in the decisional law of the 
Authority or Federal courts:
    (1) The arbitrator:
    (i) Exceeded his or her authority; or
    (ii) Was biased; or
    (iii) Denied the excepting party a fair hearing; or
    (2) The award:
    (i) Fails to draw its essence from the parties' collective 
bargaining agreement; or
    (ii) Is based on a nonfact; or

[[Page 476]]

    (iii) Is incomplete, ambiguous, or contradictory as to make 
implementation of the award impossible; or
    (iv) Is contrary to public policy; or
    (v) Is deficient on the basis of a private-sector ground not listed 
in paragraphs (b)(1)(i) through (b)(2)(iv) of this section.
    (c) If a party argues that the award is deficient on a private-
sector ground raised under paragraph (b)(2)(v) of this section, the 
party must provide sufficient citation to legal authority that 
establishes the grounds upon which the party filed its exceptions.
    (d) The Authority does not have jurisdiction over an award relating 
to:
    (1) An action based on unacceptable performance covered under 5 
U.S.C. 4303;
    (2) A removal, suspension for more than fourteen (14) days, 
reduction in grade, reduction in pay, or furlough of thirty (30) days or 
less covered under 5 U.S.C. 7512; or
    (3) Matters similar to those covered under 5 U.S.C. 4303 and 5 
U.S.C. 7512 which arise under other personnel systems.
    (e) An exception may be subject to dismissal or denial if:
    (1) The excepting party fails to raise and support a ground as 
required in paragraphs (a) through (c) of this section, or otherwise 
fails to demonstrate a legally recognized basis for setting aside the 
award; or
    (2) The exception concerns an award described in paragraph (d) of 
this section.



Sec.  2425.7  Requests for expedited, abbreviated decisions 
in certain arbitration matters that do not involve unfair labor practices.

    Where an arbitration matter before the Authority does not involve 
allegations of unfair labor practices under 5 U.S.C. 7116, and the 
excepting party wishes to receive an expedited Authority decision, the 
excepting party may request that the Authority issue a decision that 
resolves the parties' arguments without a full explanation of the 
background, arbitration award, parties' arguments, and analysis of those 
arguments. In determining whether such an abbreviated decision is 
appropriate, the Authority will consider all of the circumstances of the 
case, including, but not limited to: whether any opposition filed under 
Sec.  2425.3 of this part objects to issuance of such a decision and, if 
so, the reasons for such an objection; and the case's complexity, 
potential for precedential value, and similarity to other, fully 
detailed decisions involving the same or similar issues. Even absent a 
request, the Authority may issue expedited, abbreviated decisions in 
appropriate cases.



Sec.  2425.8  Collaboration and Alternative Dispute Resolution Program.

    The parties may request assistance from the Collaboration and 
Alternative Dispute Resolution Program (CADR) to attempt to resolve the 
dispute before or after an opposition is filed. Upon request, and as 
agreed to by the parties, CADR representatives will attempt to assist 
the parties to resolve these disputes. If the parties have agreed to 
CADR assistance, and the time for filing an opposition has not expired, 
then the Authority will toll the time limit for filing an opposition 
until the CADR process is completed. Parties seeking information or 
assistance under this part may call or write the CADR Office at 1400 K 
Street, NW., Washington, DC 20424. A brief summary of CADR activities is 
available on the Internet at http://www.flra.gov.



Sec.  2425.9  Means of clarifying records or disputes.

    When required to clarify a record or when it would otherwise aid in 
disposition of the matter, the Authority, or its designated 
representative, may, as appropriate:
    (a) Direct the parties to provide specific documentary evidence, 
including the arbitration record as discussed in 5 CFR 2429.3;
    (b) Direct the parties to respond to requests for further 
information;
    (c) Meet with parties, either in person or via telephone or other 
electronic communications systems, to attempt to clarify the dispute or 
matters in the record;
    (d) Direct the parties to provide oral argument; or
    (e) Take any other appropriate action.

[[Page 477]]



Sec.  2425.10  Authority decision.

    The Authority shall issue its decision and order taking such action 
and making such recommendations concerning the award as it considers 
necessary, consistent with applicable laws, rules, or regulations.



PART 2426_NATIONAL CONSULTATION RIGHTS AND CONSULTATION RIGHTS 
ON GOVERNMENT-WIDE RULES OR REGULATIONS--Table of Contents



                 Subpart A_National Consultation Rights

Sec.
2426.1 Requesting; granting; criteria.
2426.2 Requests; petition and procedures for determination of 
          eligibility for national consultation rights.
2426.3 Obligation to consult.

  Subpart B_Consultation Rights on Government-wide Rules or Regulations

2426.11 Requesting; granting; criteria.
2426.12 Requests; petition and procedures for determination of 
          eligibility for consultation rights on Government-wide rules 
          or regulations.
2426.13 Obligation to consult.

    Authority: 5 U.S.C. 7134.

    Source: 45 FR 3513, Jan. 17, 1980, unless otherwise noted.



                 Subpart A_National Consultation Rights



Sec.  2426.1  Requesting; granting; criteria.

    (a) An agency shall accord national consultation rights to a labor 
organization that:
    (1) Requests national consultation rights at the agency level; and
    (2) Holds exclusive recognition for either:
    (i) Ten percent (10%) or more of the total number of civilian 
personnel employed by the agency and the non-appropriated fund Federal 
instrumentalities under its jurisdiction, excluding foreign nationals; 
or
    (ii) 3,500 or more employees of the agency.
    (b) An agency's primary national subdivision which has authority to 
formulate conditions of employment shall accord national consultation 
rights to a labor organization that:
    (1) Requests national consultation rights at the primary national 
subdivision level; and
    (2) Holds exclusive recognition for either:
    (i) Ten percent (10%) or more of the total number of civilian 
personnel employed by the primary national subdivision and the non-
appropriated fund Federal instrumentalities under its jurisdiction, 
excluding foreign nationals; or
    (ii) 3,500 or more employees of the primary national subdivision.
    (c) In determining whether a labor organization meets the 
requirements as prescribed in paragraphs (a)(2) and (b)(2) of this 
section, the following will not be counted:
    (1) At the agency level, employees represented by the labor 
organization under national exclusive recognition granted at the agency 
level.
    (2) At the primary national subdivision level, employees represented 
by the labor organization under national exclusive recognition granted 
at the agency level or at that primary national subdivision level.
    (d) An agency or a primary national subdivision of an agency shall 
not grant national consultation rights to any labor organization that 
does not meet the criteria prescribed in paragraphs (a), (b) and (c) of 
this section.



Sec.  2426.2  Requests; petition and procedures for determination 
of eligibility for national consultation rights.

    (a) Requests by labor organizations for national consultation rights 
shall be submitted in writing to the headquarters of the agency or the 
agency's primary national subdivision, as appropriate, which 
headquarters shall have fifteen (15) days from the date of service of 
such request to respond thereto in writing.
    (b) Issues relating to a labor organization's eligibility for, or 
continuation of, national consultation rights shall be referred to the 
Authority for determination as follows:
    (1) A petition for determination of the eligibility of a labor 
organization for national consultation rights under criteria set forth 
in Sec.  2426.1 may be filed by a labor organization.

[[Page 478]]

    (2) A petition for determination of eligibility for national 
consultation rights shall be submitted on a form prescribed by the 
Authority and shall set forth the following information:
    (i) Name and affiliation, if any, of the petitioner and its address 
and telephone number;
    (ii) A statement that the petitioner has submitted to the agency or 
the primary national subdivision and to the Assistant Secretary a roster 
of its officers and representatives, a copy of its constitution and 
bylaws, and a statement of its objectives;
    (iii) A declaration by the person signing the petition, under the 
penalties of the Criminal Code (18 U.S.C. 1001), that its contents are 
true and correct to the best of such person's knowledge and belief;
    (iv) The signature of the petitioner's representative, including 
such person's title and telephone number;
    (v) The name, address, and telephone number of the agency or primary 
national subdivision in which the petitioner seeks to obtain or retain 
national consultation rights, and the persons to contact and their 
titles, if known;
    (vi) A showing that petitioner holds adequate exclusive recognition 
as required by Sec.  2426.1; and
    (vii) A statement as appropriate: (A) That such showing has been 
made to and rejected by the agency or primary national subdivision, 
together with a statement of the reasons for rejection, if any, offered 
by that agency or primary national subdivision;
    (B) That the agency or primary national subdivision has served 
notice of its intent to terminate existing national consultation rights, 
together with a statement of the reasons for termination; or
    (C) That the agency or primary national subdivision has failed to 
respond in writing to a request for national consultation rights made 
under Sec.  2426.2(a) within fifteen (15) days after the date the 
request is served on the agency or primary national subdivision.
    (3) The following regulations govern petitions filed under this 
section:
    (i) A petition for determination of eligibility for national 
consultation rights shall be filed with the Regional Director for the 
region wherein the headquarters of the agency or the agency's primary 
national subdivision is located.
    (ii) An original and four (4) copies of a petition shall be filed, 
together with a statement of any other relevant facts and of all 
correspondence.
    (iii) Copies of the petition together with the attachments referred 
to in paragraph (b)(3)(ii) of this section shall be served by the 
petitioner on all known interested parties, and a written statement of 
such service shall be filed with the Regional Director.
    (iv) A petition shall be filed within thirty (30) days after the 
service of written notice by the agency or primary national subdivision 
of its refusal to accord national consultation rights pursuant to a 
request under Sec.  2426.2(a) or its intention to terminate existing 
national consultation rights. If an agency or a primary national 
subdivision fails to respond in writing to a request for national 
consultation rights made under Sec.  2426.2(a) within fifteen (15) days 
after the date the request is served on the agency or primary national 
subdivision, a petition shall be filed within thirty (30) days after the 
expiration of such fifteen (15) day period.
    (v) If an agency or primary national subdivision wishes to terminate 
national consultation rights, notice of its intention to do so shall 
include a statement of its reasons and shall be served not less than 
thirty (30) days prior to the intended termination date. A labor 
organization, after receiving such notice, may file a petition within 
the time period prescribed herein, and thereby cause to be stayed 
further action by the agency or primary national subdivision pending 
disposition of the petition. If no petition has been filed within the 
provided time period, an agency or primary national subdivision may 
terminate national consultation rights.
    (vi) Within fifteen (15) days after the receipt of a copy of the 
petition, the agency or primary national subdivision shall file a 
response thereto with the Regional Director raising any matter which is 
relevant to the petition.

[[Page 479]]

    (vii) The Regional Director shall make such investigations as the 
Regional Director deems necessary and thereafter shall issue and serve 
on the parties a Decision and Order with respect to the eligibility for 
national consultation rights which shall be final: Provided, however, 
That an application for review of the Regional Director's Decision and 
Order may be filed with the Authority in accordance with the procedure 
set forth in Sec.  2422.17 of this subchapter. A determination by the 
Regional Director to issue a notice of hearing shall not be subject to 
the filing of an application for review. The Regional Director, if 
appropriate, may cause a notice of hearing to be issued to all 
interested parties where substantial factual issues exist warranting a 
hearing. Hearings shall be conducted by a Hearing Officer in accordance 
with Sec. Sec.  2422.9 through 2422.15 of this subchapter and after the 
close of the hearing a Decision and Order shall be issued by the 
Regional Director in accordnce with Sec.  2422.16 of this subchapter.

[45 FR 3513, Jan. 17, 1980, as amended at 48 FR 40193, Sept. 6, 1983]



Sec.  2426.3  Obligation to consult.

    (a) When a labor organization has been accorded national 
consultation rights, the agency or the primary national subdivision 
which has granted those rights shall, through appropriate officials, 
furnish designated representatives of the labor organization:
    (1) Reasonable notice of any proposed substantive change in 
conditions of employment; and
    (2) Reasonable time to present its views and recommendations 
regarding the change.
    (b) If a labor organization presents any views or recommendations 
regarding any proposed substantive change in conditions of employment to 
an agency or a primary national subdivision, that agency or primary 
national subdivision shall:
    (1) Consider the views or recommendations before taking final action 
on any matter with respect to which the views or recommendations are 
presented; and
    (2) Provide the labor organization a written statement of the 
reasons for taking the final action.
    (c) Nothing in this subpart shall be construed to limit the right of 
any agency or exclusive representative to engage in collective 
bargaining.



  Subpart B_Consultation Rights on Government-wide Rules or Regulations



Sec.  2426.11  Requesting; granting; criteria.

    (a) An agency shall accord consultation rights on Government-wide 
rules or regulations to a labor organization that:
    (1) Requests consultation rights on Government-wide rules or 
regulations from an agency; and
    (2) Holds exclusive recognition for 3,500 or more employees.
    (b) An agency shall not grant consultation rights on Government-wide 
rules or regulations to any labor organization that does not meet the 
criteria prescribed in paragraph (a) of this section.



Sec.  2426.12  Requests; petition and procedures for determination 
of eligibility for consultation rights on Government-wide rules or regulations.

    (a) Requests by labor organizations for consultation rights on 
Government-wide rules or regulations shall be submitted in writing to 
the headquarters of the agency, which headquarters shall have fifteen 
(15) days from the date of service of such request to respond thereto in 
writing.
    (b) Issues relating to a labor organization's eligibility for, or 
continuation of, consultation rights on Government-wide rules or 
regulations shall be referred to the Authority for determination as 
follows:
    (1) A petition for determination of the eligibility of a labor 
organization for consultation rights under criteria set forth in Sec.  
2426.11 may be filed by a labor organization.
    (2) A petition for determination of eligibility for consultation 
rights shall be submitted on a form prescribed by the Authority and 
shall set forth the following information:
    (i) Name and affiliation, if any, of the petitioner and its address 
and telephone number;

[[Page 480]]

    (ii) A statement that the petitioner has submitted to the agency and 
to the Assistant Secretary a roster of its officers and representatives, 
a copy of its constitution and bylaws, and a statement of its 
objectives;
    (iii) A declaration by the person signing the petition, under the 
penalties of the Criminal Code (18 U.S.C. 1001), that its contents are 
true and correct to the best of such person's knowledge and belief;
    (iv) The signature of the petitioner's representative, including 
such person's title and telephone number;
    (v) The name, address, and telephone number of the agency in which 
the petitioner seeks to obtain or retain consultation rights on 
Government-wide rules or regulations, and the persons to contact and 
their titles, if known;
    (vi) A showing that petitioner meets the criteria as required by 
Sec.  2426.11; and
    (vii) A statement, as appropriate:
    (A) That such showing has been made to and rejected by the agency, 
together with a statement of the reasons for rejection, if any, offered 
by that agency;
    (B) That the agency has served notice of its intent to terminate 
existing consultation rights on Government-wide rules or regulations, 
together with a statement of the reasons for termination; or
    (C) That the agency has failed to respond in writing to a request 
for consultation rights on Government-wide rules or regulations made 
under Sec.  2426.12(a) within fifteen (15) days after the date the 
request is served on the agency.
    (3) The following regulations govern petitions filed under this 
section:
    (i) A petition for determination of eligibility for consultation 
rights on Government-wide rules or regulations shall be filed with the 
Regional Director for the region wherein the headquarters of the agency 
is located.
    (ii) An original and four (4) copies of a petition shall be filed, 
together with a statement of any other relevant facts and of all 
correspondence.
    (iii) Copies of the petition together with the attachments referred 
to in paragraph (b)(3)(ii) of this section shall be served by the 
petitioner on the agency, and a written statement of such service shall 
be filed with the Regional Director.
    (iv) A petition shall be filed within thirty (30) days after the 
service of written notice by the agency of its refusal to accord 
consultation rights on Government-wide rules or regulations pursuant to 
a request under Sec.  2426.12(a) or its intention to terminate such 
existing consultation rights. If an agency fails to respond in writing 
to a request for consultation rights on Government-wide rules or 
regulations made under Sec.  2426.12(a) within fifteen (15) days after 
the date the request is served on the agency, a petition shall be filed 
within thirty (30) days after the expiration of such fifteen (15) day 
period.
    (v) If an agency wishes to terminate consultation rights on 
Government-wide rules or regulations, notice of its intention to do so 
shall be served not less than thirty (30) days prior to the intended 
termination date. A labor organization, after receiving such notice, may 
file a petition within the time period prescribed herein, and thereby 
cause to be stayed further action by the agency pending disposition of 
the petition. If no petition has been filed within the provided time 
period, an agency may terminate such consultation rights.
    (vi) Within fifteen (15) days after the receipt of a copy of the 
petition, the agency shall file a response thereto with the Regional 
Director raising any matter which is relevant to the petition.
    (vii) The Regional Director shall make such investigation as the 
Regional Director deems necessary and thereafter shall issue and serve 
on the parties a Decision and Order with respect to the eligibility for 
consultation rights which shall be final: Provided, however, That an 
application for review of the Regional Director's Decision and Order may 
be filed with the Authority in accordance with the procedure set forth 
in Sec.  2422.17 of this subchapter. A determination by the Regional 
Director to issue a notice of hearing shall not be subject to the filing 
of an application for review. The Regional Director, if appropriate, may 
cause a notice of hearing to be issued where substantial factual issues 
exist warranting a hearing. Hearings shall be conducted

[[Page 481]]

by a Hearing Officer in accordance with Sec. Sec.  2422.9 through 
2422.15 of this chapter and after the close of the hearing a Decision 
and Order shall be issued by the Regional Director in accordance with 
Sec.  2422.16 of this subchapter.

[45 FR 3513, Jan. 17, 1980, as amended at 48 FR 40193, Sept. 6, 1983]



Sec.  2426.13  Obligation to consult.

    (a) When a labor organization has been accorded consultation rights 
on Government-wide rules or regulations, the agency which has granted 
those rights shall, through appropriate officials, furnish designated 
representatives of the labor organization:
    (1) Reasonable notice of any proposed Government-wide rule or 
regulation issued by the agency affecting any substantive change in any 
condition of employment; and
    (2) Reasonable time to present its views and recommendations 
regarding the change.
    (b) If a labor organization presents any views or recommendations 
regarding any proposed substantive change in any condition of employment 
to an agency, that agency shall:
    (1) Consider the views or recommendations before taking final action 
on any matter with respect to which the views or recommendations are 
presented; and
    (2) Provide the labor organization a written statement of the 
reasons for taking the final action.



PART 2427_GENERAL STATEMENTS OF POLICY OR GUIDANCE--Table of Contents



Sec.
2427.1 Scope.
2427.2 Requests for general statements of policy or guidance.
2427.3 Content of request.
2427.4 Submissions from interested parties.
2427.5 Standards governing issuance of general statements of policy or 
          guidance.

    Authority: 5 U.S.C. 7134.

    Source: 45 FR 3516, Jan. 17, 1980, unless otherwise noted.



Sec.  2427.1  Scope.

    This part sets forth procedures under which requests may be 
submitted to the Authority seeking the issuance of general statements of 
policy or guidance under 5 U.S.C. 7105(a)(1).



Sec.  2427.2  Requests for general statements of policy or guidance.

    (a) The head of an agency (or designee), the national president of a 
labor organization (or designee), or the president of a labor 
organization not affiliated with a national organization (or designee) 
may separately or jointly ask the Authority for a general statement of 
policy or guidance. The head of any lawful association not qualified as 
a labor organization may also ask the Authority for such a statement 
provided the request is not in conflict with the provisions of chapter 
71 of title 5 of the United States Code or other law.
    (b) The Authority ordinarily will not consider a request related to 
any matter pending before the Authority, General Counsel, Panel or 
Assistant Secretary.



Sec.  2427.3  Content of request.

    (a) A request for a general statement of policy or guidance shall be 
in writing and must contain:
    (1) A concise statement of the question with respect to which a 
general statement of policy or guidance is requested together with 
background information necessary to an understanding of the question;
    (2) A statement of the standards under Sec.  2427.5 upon which the 
request is based;
    (3) A full and detailed statement of the position or positions of 
the requesting party or parties;
    (4) Identification of any cases or other proceedings known to bear 
on the question which are pending under chapter 71 of title 5 of the 
United States Code; and
    (5) Identification of other known interested parties.
    (b) A copy of each document also shall be served on all known 
interested parties, including the General Counsel, the Panel, the 
Federal Mediation and Conciliation Service, and the Assistant Secretary, 
where appropriate.

[[Page 482]]



Sec.  2427.4  Submissions from interested parties.

    Prior to issuance of a general statement of policy or guidance the 
Authority, as it deems appropriate, will afford an opportunity to 
interested parties to express their views orally or in writing.



Sec.  2427.5  Standards governing issuance of general statements 
of policy or guidance.

    In deciding whether to issue a general statement of policy or 
guidance, the Authority shall consider:
    (a) Whether the question presented can more appropriately be 
resolved by other means;
    (b) Where other means are available, whether an Authority statement 
would prevent the proliferation of cases involving the same or similar 
question;
    (c) Whether the resolution of the question presented would have 
general applicability under the Federal Service Labor-Management 
Relations Statute;
    (d) Whether the question currently confronts parties in the context 
of a labor-management relationship;
    (e) Whether the question is presented jointly by the parties 
involved; and
    (f) Whether the issuance by the Authority of a general statement of 
policy or guidance on the question would promote constructive and 
cooperative labor-management relationships in the Federal service and 
would otherwise promote the purposes of the Federal Service Labor-
Management Relations Statute.



PART 2428_ENFORCEMENT OF ASSISTANT SECRETARY STANDARDS OF CONDUCT DECISIONS 
AND ORDERS--Table of Contents



Sec.
2428.1 Scope.
2428.2 Petitions for enforcement.
2428.3 Authority decision.

    Authority: 5 U.S.C. 7134.

    Source: 45 FR 3516, Jan. 17, 1980, unless otherwise noted.



Sec.  2428.1  Scope.

    This part sets forth procedures under which the Authority, pursuant 
to 5 U.S.C. 7105(a)(2)(I), will enforce decisions and orders of the 
Assistant Secretary in standards of conduct matters arising under 5 
U.S.C. 7120.



Sec.  2428.2  Petitions for enforcement.

    (a) The Assistant Secretary may petition the Authority to enforce 
any Assistant Secretary decision and order in a standards of conduct 
case arising under 5 U.S.C. 7120. The Assistant Secretary shall transfer 
to the Authority the record in the case, including a copy of the 
transcript if any, exhibits, briefs, and other documents filed with the 
Assistant Secretary. A copy of the petition for enforcement shall be 
served on the labor organization against which such order applies.
    (b) An opposition to Authority enforcement of any such Assistant 
Secretary decision and order may be filed by the labor organization 
against which such order applies twenty (20) days from the date of 
service of the petition, unless the Authority, upon good cause shown by 
the Assistant Secretary, sets a shorter time for filing such opposition. 
A copy of the opposition to enforcement shall be served on the Assistant 
Secretary.



Sec.  2428.3  Authority decision.

    (a) A decision and order of the Assistant Secretary shall be 
enforced unless it is arbitrary and capricious or based upon manifest 
disregard of the law.
    (b) The Authority shall issue its decision on the case enforcing, 
enforcing as modified, refusing to enforce, or remanding the decision 
and order of the Assistant Secretary.



PART 2429_MISCELLANEOUS AND GENERAL REQUIREMENTS--Table of Contents



                         Subpart A_Miscellaneous

Sec.
2429.1 [Reserved]
2429.2 Transfer and consolidation of cases.
2429.3 Transfer of record.
2429.4 Referral of policy questions to the Authority.
2429.5 Matters not previously presented; official notice.
2429.6 Oral argument.
2429.7 Subpoenas.
2429.8 [Reserved]
2429.9 Amicus curiae.
2429.10 Advisory opinions.
2429.11 Interlocutory appeals.

[[Page 483]]

2429.12 Service of process and papers by the Authority.
2429.13 Official time for witnesses.
2429.14 Witness fees.
2429.15 Authority requests for advisory opinions.
2429.16 General remedial authority.
2429.17 Reconsideration.
2429.18 Service of petitions for review of final authority orders.

                     Subpart B_General Requirements

2429.21 How to compute the due date for filing documents with the FLRA; 
          how the FLRA determines the date on which documents have been 
          filed.
2429.22 Additional time for filing with the FLRA if you are filing in 
          response to a document that has been served on you by first-
          class mail or commercial delivery.
2429.23 Extension; waiver.
2429.24 Place and method of filing; acknowledgement.
2429.25 Number of copies and paper size.
2429.26 Other documents.
2429.27 Service; statement of service.
2429.28 Petitions for amendment of regulations.
2429.29 Content of filings.

    Authority: 5 U.S.C. 7134; Sec.  2429.18 also issued under 28 U.S.C. 
2112(a).

    Source: 45 FR 3516, Jan. 17, 1980, unless otherwise noted.



                         Subpart A_Miscellaneous



Sec.  2429.1  [Reserved]



Sec.  2429.2  Transfer and consolidation of cases.

    In any matter arising pursuant to parts 2422 and 2423 of this 
subchapter, whenever it appears necessary in order to effectuate the 
purposes of the Federal Service Labor-Management Relations Statute or to 
avoid unnecessary costs or delay, Regional Directors may consolidate 
cases within their own region or may transfer such cases to any other 
region, for the purpose of investigation or consolidation with any 
proceedings which may have been instituted in, or transferred to, such 
region.



Sec.  2429.3  Transfer of record.

    In any case under part 2425 of this subchapter, upon request by the 
Authority, the parties jointly shall transfer the record in the case, 
including a copy of the transcript, if any, exhibits, briefs and other 
documents filed with the arbitrator, to the Authority.



Sec.  2429.4  Referral of policy questions to the Authority.

    Notwithstanding the procedures set forth in this subchapter, the 
General Counsel, the Assistant Secretary, or the Panel may refer for 
review and decision or general ruling by the Authority any case 
involving a major policy issue that arises in a proceeding before any of 
them. Any such referral shall be in writing and a copy of such referral 
shall be served on all parties to the proceeding. Before decision or 
general ruling, the Authority shall obtain the views of the parties and 
other interested persons, orally or in writing, as it deems necessary 
and appropriate.



Sec.  2429.5  Matters not previously presented; official notice.

    The Authority will not consider any evidence, factual assertions, 
arguments (including affirmative defenses), requested remedies, or 
challenges to an awarded remedy that could have been, but were not, 
presented in the proceedings before the Regional Director, Hearing 
Officer, Administrative Law Judge, or arbitrator. The Authority may, 
however, take official notice of such matters as would be proper.

[75 FR 42292, July 21, 2010]



Sec.  2429.6  Oral argument.

    The Authority or the General Counsel, in their discretion, may 
request or permit oral argument in any matter arising under this 
subchapter under such circumstances and conditions as they deem 
appropriate.



Sec.  2429.7  Subpoenas.

    (a) Any member of the Authority, the General Counsel, any 
Administrative Law Judge appointed by the Authority under 5 U.S.C. 3105, 
and any Regional Director, Hearing Officer, or other employee of the 
Authority designated by the Authority may issue subpoenas requiring the 
attendance and testimony of witnesses and the production of documentary 
or other evidence. However, no subpoena shall be issued under this 
section which requires the disclosure of intramanagement guidance, 
advice, counsel, or training within an agency

[[Page 484]]

or between an agency and the Office of Personnel Management.
    (b) Where the parties are in agreement that the appearance of 
witnesses or the production of documents is necessary, and such 
witnesses agree to appear, no such subpoena need be sought.
    (c) A request for a subpoena by any person, as defined in 5 U.S.C. 
7103(a)(1), shall be in writing and filed with the Regional Director, in 
proceedings arising under part 2422 of this subchapter, or with the 
Authority, in proceedings arising under parts 2424 and 2425 of this 
subchapter, not less than 10 days prior to the hearing, or with the 
appropriate presiding official(s) during the hearing. Requests for 
subpoenas made less than 10 days prior to the opening of the hearing 
shall be granted on sufficient explanation of why the request was not 
timely filed.
    (d) The Authority, General Counsel, Regional Director, Hearing 
Officer, or any other employee of the Authority designated by the 
Authority, as appropriate, shall furnish the requester the subpoenas 
sought, provided the request is timely made. Requests for subpoenas may 
be made ex parte. Completion of the specific information in the subpoena 
and the service of the subpoena are the responsibility of the party on 
whose behalf the subpoena was issued. A subpoena may be served by any 
person who is at least 18 years old and who is not a party to the 
proceeding. The person who served the subpoena must certify that he or 
she did so:
    (1) By delivering it to the witness in person,
    (2) By registered or certified mail, or
    (3) By delivering the subpoena to a responsible person (named in the 
document certifying the delivery) at the residence or place of business 
(as appropriate) of the person for whom the subpoena was intended. The 
subpoena shall show on its face the name and address of the party on 
whose behalf the subpoena was issued.
    (e)(1) Any person served with a subpoena who does not intend to 
comply, shall, within 5 days after the date of service of the subpoena 
upon such person, petition in writing to revoke the subpoena. A copy of 
any petition to revoke a subpoena shall be served on the party on whose 
behalf the subpoena was issued. Such petition to revoke, if made prior 
to the hearing, and a written statement of service, shall be filed with 
the Regional Director in proceedings arising under part 2422 of this 
subchapter, and with the Authority, in proceedings arising under parts 
2424 and 2425 of this subchapter for ruling. A petition to revoke a 
subpoena filed during the hearing, and a written statement of service, 
shall be filed with the appropriate presiding official(s).
    (2) The Authority, General Counsel, Regional Director, Hearing 
Officer, or any other employee of the Authority designated by the 
Authority, as appropriate, shall revoke the subpoena if the person or 
evidence, the production of which is required, is not material and 
relevant to the matters under investigation or in question in the 
proceedings, or the subpoena does not describe with sufficient 
particularity the evidence the production of which is required, or if 
for any other reason sufficient in law the subpoena is invalid. The 
Authority, General Counsel, Regional Director, Hearing Officer, or any 
other employee of the Authority designated by the Authority, as 
appropriate, shall state the procedural or other ground for the ruling 
on the petition to revoke. The petition to revoke, any answer thereto, 
and any ruling thereon shall not become part of the official record 
except upon the request of the party aggrieved by the ruling.
    (f) Upon the failure of any person to comply with a subpoena issued 
and upon the request of the party on whose behalf the subpoena was 
issued, the Solicitor of the Authority shall institute proceedings on 
behalf of such party in the appropriate district court for the 
enforcement thereof, unless to do so would be inconsistent with law and 
the Federal Service Labor-Management Relations Statute.

[45 FR 3516, Jan. 17, 1980, as amended at 62 FR 40922, July 31, 1997]



Sec.  2429.8  [Reserved]



Sec.  2429.9  Amicus curiae.

    Upon petition of an interested person, a copy of which petition 
shall be

[[Page 485]]

served on the parties, and as the Authority deems appropriate, the 
Authority may grant permission for the presentation of written and/or 
oral argument at any stage of the proceedings by an amicus curiae and 
the parties shall be notified of such action by the Authority.



Sec.  2429.10  Advisory opinions.

    The Authority and the General Counsel will not issue advisory 
opinions.



Sec.  2429.11  Interlocutory appeals.

    Except as set forth in part 2423, the Authority and the General 
Counsel ordinarily will not consider interlocutory appeals.

[62 FR 40923, July 31, 1997]



Sec.  2429.12  Service of process and papers by the Authority.

    (a) Methods of service. Notices of hearings, decisions and orders of 
Regional Directors, decisions and recommended orders of Administrative 
Law Judges, decisions of the Authority, complaints, amended complaints, 
withdrawals of complaints, written rulings on motions, and all other 
papers required by this subchapter to be issued by the Authority, the 
General Counsel, Regional Directors, Hearing Officers, Administrative 
Law Judges, and Regional Directors when not acting as a party under part 
2423 of this subchapter, shall be served personally, by first-class 
mail, by facsimile transmission, or by certified mail. Where facsimile 
equipment is available, rulings on motions; information pertaining to 
prehearing disclosure, conferences, orders, or hearing dates, and 
locations; information pertaining to subpoenas; and other similar or 
time sensitive matters may be served by facsimile transmission.
    (b) Upon whom served. All papers required to be served under 
paragraph (a) of this section shall be served upon all counsel of record 
or other designated representative(s) of parties, and upon parties not 
so represented. Service upon such counsel or representative shall 
constitute service upon the party, but a copy also shall be transmitted 
to the party.
    (c) Proof of service. Proof of service shall be verified by 
certificate of the individual serving the papers describing the manner 
of such service. When service is by mail, the date of service shall be 
the day when the matter served is deposited in the United States mail. 
When service is by facsimile, the date of service shall be the date the 
facsimile transmission is transmitted and, when necessary, verified by a 
dated facsimile record of transmission.

[45 FR 3516, Jan. 17, 1980, as amended at 48 FR 40194, Sept. 6, 1983; 62 
FR 40923, July 31, 1997]



Sec.  2429.13  Official time for witnesses.

    If the participation of any employee in any phase of any proceeding 
before the Authority, including the investigation of unfair labor 
practice charges and representation petitions and the participation in 
hearings and representation elections, is deemed necessary by the 
Authority, the General Counsel, any Administrative Law Judge, Regional 
Director, Hearing Officer, or other agent of the Authority designated by 
the Authority, the employee shall be granted official time for such 
participation, including necessary travel time, as occurs during the 
employee's regular work hours and when the employee would otherwise be 
in a work or paid leave status.

[62 FR 40923, July 31, 1997]



Sec.  2429.14  Witness fees.

    (a) Witnesses, whether appearing voluntarily or pursuant to a 
subpoena, shall be paid the fee and mileage allowances which are paid 
subpoenaed witnesses in the courts of the United States. However, any 
witness who is employed by the Federal Government shall not be entitled 
to receive witness fees.
    (b) Witness fees, as appropriate, as well as transportation and per 
diem expenses for a witness shall be paid by the party that calls the 
witness to testify.

[62 FR 40923, July 31, 1997]



Sec.  2429.15  Authority requests for advisory opinions.

    (a) Whenever the Authority, pursuant to 5 U.S.C. 7105(i) requests an 
advisory opinion from the Director of the

[[Page 486]]

Office of Personnel Management concerning the proper interpretation of 
rules, regulations, or policy directives issued by that Office in 
connection with any matter before the Authority, a copy of such request, 
and any response thereto, shall be served upon the parties in the 
matter.
    (b) The parties shall have fifteen (15) days from the date of 
service of a copy of the response of the Office of Personnel Management 
to file with the Authority comments on that response which the parties 
wish the Authority to consider before reaching a decision in the matter. 
Such comments shall be in writing and copies shall be served upon the 
other parties in the matter and upon the Office of Personnel Management.



Sec.  2429.16  General remedial authority.

    The Authority shall take any actions which are necessary and 
appropriate to administer effectively the provisions of chapter 71 of 
title 5 of the United States Code.



Sec.  2429.17  Reconsideration.

    After a final decision or order of the Authority has been issued, a 
party to the proceeding before the Authority who can establish in its 
moving papers extraordinary circumstances for so doing, may move for 
reconsideration of such final decision or order. The motion shall be 
filed within ten (10) days after service of the Authority's decision or 
order. A motion for reconsideration shall state with particularity the 
extraordinary circumstances claimed and shall be supported by 
appropriate citations. The filing and pendency of a motion under this 
provision shall not operate to stay the effectiveness of the action of 
the Authority, unless so ordered by the Authority. A motion for 
reconsideration need not be filed in order to exhaust administrative 
remedies.

[46 FR 40675, Aug. 11, 1981]



Sec.  2429.18  Service of petitions for review of final authority orders.

    Any aggrieved person filing pursuant to 5 U.S.C. 7123(a) a petition 
for review of a final Authority order in an appropriate Federal circuit 
court of appeals within 10 days of issuance of the Authority's final 
order must ensure that a court-stamped copy of the petition for review 
is received by the Solicitor of the Authority within that 10-day period 
in order to qualify for participation in the random selection process 
established in Public Law No. 100-236 for determining the appropriate 
court of appeals to review an agency final order when petitions for 
review of that order are filed in more than one court of appeals.

[55 FR 2509, Jan. 25, 1990]



                     Subpart B_General Requirements



Sec.  2429.21  How to compute the due date for filing documents with the FLRA; 
how the FLRA determines the date on which documents have been filed.

    (a) How to compute the due date for filing documents with the FLRA. 
In computing the due date for filing any document with the FLRA under 
this subchapter, follow these rules:
    (1) General rules. Except in the situations discussed in paragraphs 
(a)(2) and (3) of this section, follow these steps in order to determine 
the date on which you must file any document with the FLRA.
    (i) Step 1: Determine the act, event, or default (``the triggering 
event'') that you are filing in response to. The act, event, or default 
constitutes the triggering event even if it falls on a Saturday, Sunday, 
or federal legal holiday.
    (ii) Step 2: Determine the number of days that you have to file 
(``the filing period'').
    (iii) Step 3: Determine the first day of the filing period. This is 
the day after, not the day of, the triggering event, and constitutes the 
first day of the filing period even if it is a Saturday, Sunday, or 
federal legal holiday.
    (iv) Step 4: Starting with the first day of the filing period, count 
calendar days--including Saturdays, Sundays, and federal legal 
holidays--until you reach the last day of the filing period (``the last 
day'').
    (v) Step 5: Ask: Does the last day fall on a Saturday, Sunday, or 
federal legal holiday? If no, then your filing is due on that day 
(unless you are entitled to an additional 5 days under Sec.  2429.22). 
If

[[Page 487]]

yes, then find the next day on the calendar that is not a Saturday, 
Sunday, or federal legal holiday. Your filing is due on that day (unless 
you are entitled to an additional 5 days under Sec.  2429.22), even if 
you are filing electronically through use of the eFiling system on the 
FLRA's Web site at www.flra.gov (although, as discussed in paragraph 
(b)(1)(v) of this section, you are permitted to file electronically on 
Saturdays, Sundays, or federal legal holidays). See Sec.  2429.22 for 
rules regarding how to calculate your due date if you are entitled to an 
additional 5 days.
    (2) Agreement-bar exception. If you are filing a petition in an 
agreement-bar situation under 5 CFR 2422.12(c), (d), (e), and (f), then, 
as discussed further in those regulations, you must file a petition no 
later than 60 days before the expiration date of the existing 
collective-bargaining agreement (``the 60-day date''). The first day 
(``day one'') of the period is the day before, not the day on which, the 
collective-bargaining agreement expires. Start with day one, and count 
back on the calendar from that day, including Saturdays, Sundays, and 
federal legal holidays. If the 60th day falls on a Saturday, Sunday, or 
federal legal holiday, then you must file your petition by the close of 
business on the last official workday that comes before, not after, that 
Saturday, Sunday, or federal legal holiday.
    (3) Exception for filing periods that are 7 days or less. If your 
filing period is 7 days or less, then determine the act, event, or 
default that you are filing in response to (``the triggering event''). 
Find the first day after the triggering event that is not a Saturday, 
Sunday, or federal legal holiday. Start counting the 7-day period on 
(and including) that day, but exclude any Saturdays, Sundays, or federal 
legal holidays. The 7th day is the due date for filing.
    (b) How the FLRA determines the date on which documents have been 
filed. The FLRA applies the following rules in determining the date on 
which a party has filed documents.
    (1) General rules. Except in the situations discussed in paragraph 
(b)(2) of this section, the FLRA looks to the method by which documents 
have been filed in order to determine the date on which those documents 
have been filed. Specifically:
    (i) Documents filed with the FLRA by first-class mail. If the 
mailing contains a legible postmark date, then that date is the date of 
filing. If the mailing does not contain a legible postmark date, then 
the FLRA presumes that it was filed 5 days prior to the date on which 
the appropriate FLRA component, officer, or agent receives it.
    (ii) Documents filed with the FLRA by facsimile (``fax''). If the 
date of transmission on a fax is clear, then that date is the filing 
date. If the date of transmission on a fax is not clear, then the date 
of filing is the date on which the appropriate FLRA component, officer, 
or agent receives the fax.
    (iii) Documents filed with the FLRA by personal delivery. The date 
of filing is the date on which the appropriate FLRA component, officer, 
or agent receives the filing.
    (iv) Documents filed with the FLRA by deposit with a commercial-
delivery service that provides a record showing the date of deposit. The 
date of filing is the date of deposit with the commercial-delivery 
service.
    (v) Documents filed electronically through use of the eFiling system 
on the FLRA's Web site at www.flra.gov. The date of filing is the 
calendar day (including Saturdays, Sundays, and federal legal holidays) 
on which the document is transmitted in the eFiling system. Although 
documents that are filed electronically may be filed on Saturdays, 
Sundays, and federal legal holidays, they are not required to be filed 
on such days, as discussed in paragraph (a)(1)(v) of this section.
    (2) Exceptions. The rules in paragraph (b)(1) of this section do not 
apply to filing an unfair labor practice charge under 5 CFR part 2423, a 
representation petition under 5 CFR part 2422, and a request for an 
extension of time under Sec.  2429.23(a). See those provisions for more 
information.
    (c) Compliance with Sec.  2429.24. All documents filed or required 
to be filed with the Authority must be filed in accordance with the 
rules set out in Sec.  2429.24.

[77 FR 26435, May 4, 2012]

[[Page 488]]



Sec.  2429.22  Additional time for filing with the FLRA if you are filing 
in response to a document that has been served on you by first-class mail 
or commercial delivery.

    (a) General rules. Except as discussed in paragraphs (b), (c), (d), 
and (e) of this section, apply the following rules if and only if you 
are filing a document with the FLRA in response to a document that has 
been served on you by first-class mail or commercial delivery. First, 
look to Sec.  2429.21(a)(1) and apply steps 1 through 5 of that section 
in order to determine what normally would be your due date. Second, 
starting with the next calendar day, which will be day one, count 
forward on the calendar, including Saturdays, Sundays, and federal legal 
holidays, until you reach day five. If day five is not a Saturday, 
Sunday, or federal legal holiday, then your filing is due with the FLRA 
on that day. If day five is a Saturday, Sunday, or federal legal 
holiday, then find the next calendar day that is not a Saturday, Sunday, 
or federal legal holiday; your filing is due with the FLRA on that day.
    (b) Rules that apply when you have been served by more than one 
method. If someone has served you with a document using more than one 
method of service, then, as a general rule, the first method of service 
is controlling for purposes of determining your due date for filing with 
the FLRA. For example, if someone serves you with a document by first-
class mail or commercial delivery on one day, and then serves you by 
some other method (such as electronic mail) the next day, then you may 
add 5 days to your due date, as described in paragraph (a) of this 
section. But if someone serves you with a document one day by any method 
other than first-class mail or commercial delivery, and later serves you 
with the document by first-class mail or commercial delivery, then you 
may not add 5 days to your due date; rather, you must look to Sec.  
2429.21(a)(1) and apply steps 1 through 5 of that section in order to 
determine your due date. Also, if someone serves you by first-class mail 
or commercial delivery on one day, and by any other method on the same 
day, then you may not add 5 days--even if the first-class mail was 
postmarked or the time of deposit with the commercial-delivery service 
was earlier in the day than the time at which the other method of 
service was effected.
    (c) Exception for applications for review filed under 5 CFR 2422.31. 
You do not get an additional 5 days to file an application for review of 
a Regional Director's Decision and Order under 5 CFR 2422.31, regardless 
of the method of service of that Decision and Order.
    (d) Exception where extension of time has been granted. You do not 
get an additional 5 days in any instance where an extension of time 
already has been granted.
    (e) Rules that apply to exceptions to arbitration awards. For 
specific rules that apply to filing exceptions to arbitration awards, 
see 5 CFR 2425.2(c).

[77 FR 26436, May 4, 2012]



Sec.  2429.23  Extension; waiver.

    (a) Except as provided in paragraph (d) of this section, and 
notwithstanding Sec.  2429.21(b) of this subchapter, the Authority or 
General Counsel, or their designated representatives, as appropriate, 
may extend any time limit provided in this subchapter for good cause 
shown, and shall notify the parties of any such extension. Requests for 
extensions of time shall be in writing and received by the appropriate 
official not later than five (5) days before the established time limit 
for filing, shall state the position of the other parties on the request 
for extension, and shall be served on the other parties.
    (b) Except as provided in paragraph (d) of this section, the 
Authority or General Counsel, or their designated representatives, as 
appropriate, may waive any expired time limit in this subchapter in 
extraordinary circumstances. Request for a waiver of time limits shall 
state the position of the other parties and shall be served on the other 
parties.
    (c) The time limits established in this subchapter may not be 
extended or waived in any manner other than that described in this 
subchapter.
    (d) Time limits established in 5 U.S.C. 7105(f), 7117(c)(2) and 
7122(b) may

[[Page 489]]

not be extended or waived under this section.

[45 FR 3516, Jan. 17, 1980, as amended at 48 FR 40194, Sept. 6, 1983; 51 
FR 45752, Dec. 22, 1986]



Sec.  2429.24  Place and method of filing; acknowledgement.

    (a) Except for documents that are filed electronically through use 
of the eFiling system on the FLRA's Web site at www.flra.gov, anyone who 
files a document with the Authority (as distinguished from the General 
Counsel, a Regional Director, or an Administrative Law Judge) must file 
that document with the Chief, Case Intake and Publication, Federal Labor 
Relations Authority, Docket Room, Suite 200, 1400 K Street NW., 
Washington, DC 20424-0001 (telephone: (202) 218-7740) between 9 a.m. and 
5 p.m. Eastern Time (``E.T.''), Monday through Friday (except federal 
holidays). If you file documents by hand delivery, then you must present 
those documents in the Docket Room no later than 5 p.m. E.T., if you 
want the Authority to accept those documents for filing on that day. If 
you file documents electronically through use of the FLRA's eFiling 
system, then you may file those documents on any calendar day--including 
Saturdays, Sundays, and federal legal holidays--and the Authority will 
consider those documents filed on a particular day if you file them no 
later than midnight E.T. on that day. Note, however, that although you 
may eFile documents on Saturdays, Sundays, and federal legal documents, 
you are not required to do so. Also note that you may not file documents 
with the Authority by electronic mail (``email'').
    (b) A document submitted to the General Counsel pursuant to this 
subchapter shall be filed with the General Counsel at the address set 
forth in the appendix.
    (c) A document submitted to a Regional Director pursuant to this 
subchapter shall be filed with the appropriate regional office, as set 
forth in the appendix.
    (d) Unless electronically filed pursuant to paragraph (f)(15) of 
this section, a document filed with the Office of Administrative Law 
Judges pursuant to this subchapter shall be submitted to the address for 
the Chief Administrative Law Judge, as set forth in the appendix.
    (e) Except as discussed in paragraphs (f) and (g) of this section, 
if you are filing documents with the FLRA, then you must file them in 
person, by commercial delivery, by first-class mail, or by certified 
mail.
    (f) As an alternative to the filing methods discussed in paragraph 
(e) of this section, you may file the following documents, and only the 
following documents, electronically through use of the eFiling system on 
the FLRA's Web site at www.flra.gov:
    (1) Applications for review under 5 CFR 2422.31(a) through (c);
    (2) Oppositions to applications for review under 5 CFR 2422.31(d);
    (3) Exceptions to Administrative Law Judges' decisions under 5 CFR 
2423.40(a);
    (4) Oppositions to exceptions to Administrative Law Judges' 
decisions under 5 CFR 2423.40(b);
    (5) Cross-exceptions under 5 CFR 2423.40(b);
    (6) Exclusive representatives' petitions for review under 5 CFR 
2424.22;
    (7) Agency statements of position under 5 CFR 2424.24;
    (8) Exclusive representatives' responses under 5 CFR 2424.25;
    (9) Agency replies under 5 CFR 2424.26;
    (10) Exceptions to arbitration awards under 5 CFR part 2425; and
    (11) Oppositions to exceptions to arbitration awards under 5 CFR 
part 2425.
    (12) Petitions under 5 CFR part 2422.
    (13) Cross-petitions under 5 CFR part 2422.
    (14) Charges under 5 CFR part 2423.
    (15) Documents submitted to the Office of Administrative Law Judges 
under 5 CFR part 2423, including answers to complaints, motions, briefs, 
pre-hearing disclosures, stipulations, and any other documents as 
permitted by the eFiling system for the Office of Administrative Law 
Judges.
    (g) As another alternative to the methods of filing described in 
paragraph (e) of this section, you may file the following documents by 
facsimile (``fax''), so long as fax equipment is available and your 
entire, individual filing does not exceed 10 pages in total

[[Page 490]]

length, with normal margins and font sizes. You may file only the 
following documents by fax under this paragraph (g):
    (1) Motions;
    (2) Information pertaining to prehearing disclosure, conferences, 
orders, or hearing dates, times, and locations;
    (3) Information pertaining to subpoenas;
    (4) Appeals of a dismissal of an unfair labor practice charge; and
    (5) Other matters that are similar to those in paragraphs (g)(1) 
through (3) of this section.
    (h) You must legibly print, type, or otherwise duplicate any 
documents that you file under this section. For purposes of documents 
that are filed electronically through use of the FLRA's eFiling system 
under paragraph (f) of this section, ``legibly * * * duplicated'' means 
that documents that you upload as attachments into the eFiling system 
must be legible.
    (i) Documents, including correspondence, in any proceedings under 
this subchapter must show the title of the proceeding and the case 
number, if any.
    (j) Except for documents that are filed electronically through use 
of the FLRA's eFiling system, the original of each document required to 
be filed under this subchapter must be signed by either the filing party 
or that party's attorney, other representative of record, or officer, 
and also must contain the address and telephone number of the person who 
signs the document. Documents that are filed electronically using the 
FLRA's eFiling system must contain the mailing address, email address, 
and telephone number of the individual who files the document, but not 
that individual's signature.
    (k) A return postal receipt may serve as acknowledgement that the 
Authority, General Counsel, Administrative Law Judge, Regional Director, 
or Hearing Officer has received a filed document. Otherwise, the FLRA 
will acknowledge receipt of filed documents only if the filing party:
    (1) Asks the receiving FLRA officer to do so;
    (2) Includes an extra copy of the document or the letter to which 
the document is attached, which the receiving FLRA office will date-
stamp and return to the filing party; and
    (3) For returns that are to be sent by mail, includes a self-
addressed, stamped envelope.

[45 FR 3516, Jan. 17, 1980, as amended at 51 FR 45752, Dec. 22, 1986; 58 
FR 53105, Oct. 14, 1993; 62 FR 40924, July 31, 1997; 68 FR 10953, Mar. 
7, 2003; 68 FR 23885, May 6, 2003; 73 FR 27459, May 13, 2008; 77 FR 
26436, May 4, 2012; 77 FR 37762, June 25, 2012; 80 FR 9190, Feb. 20, 
2015]



Sec.  2429.25  Number of copies and paper size.

    (a) General rule. Except as discussed in paragraph (b) of this 
section, and unless you use an FLRA-prescribed form, any document that 
you file with the Authority, General Counsel, Administrative Law Judge, 
Regional Director, or Hearing Officer, including any attachments, must 
be on 8\1/2\ by 11 inch size paper, using normal margins and font sizes. 
You must file an original as well as four (4) legible copies of each 
document, for a total of five (5) documents. You may substitute for the 
original document a clean copy of that document, so long as the copy is 
capable of being used as an original for purposes such as further 
reproduction.
    (b) Exceptions. You are not required to comply with paragraph (a) of 
this section if and only if:
    (1) You file documents by facsimile transmission under Sec.  
2429.24(g), in which case you are required to file only one (1) legible 
copy that is capable of being reproduced;
    (2) You file documents electronically through use of the FLRA's 
eFiling system;
    (3) The Authority or the General Counsel, or their designated 
representatives, allow you not to comply; or
    (4) Another provision of this subchapter allows you not to comply.

[77 FR 26437, May 4, 2012]



Sec.  2429.26  Other documents.

    (a) The Authority or the General Counsel, or their designated 
representatives, as appropriate, may in their discretion grant leave to 
file other documents as they deem appropriate.
    (b) A copy of such other documents shall be served on the other 
parties.

[[Page 491]]



Sec.  2429.27  Service; statement of service.

    (a) Except as provided in Sec.  2423.10(c) and (d), any party filing 
a document as provided in this subchapter is responsible for serving a 
copy upon all counsel of record or other designated representative(s) of 
parties, upon parties not so represented, and upon any interested person 
who has been granted permission by the Authority pursuant to Sec.  
2429.9 to present written and/or oral argument as amicus curiae. Service 
upon such counsel or representative shall constitute service upon the 
party, but a copy also shall be transmitted to the party.
    (b) If you are serving a document under paragraph (a) of this 
section, then you must use one of the following methods of service:
    (1) Certified mail;
    (2) First-class mail;
    (3) Commercial delivery;
    (4) In-person delivery;
    (5) Facsimile (``fax'') service, but only for the types of documents 
listed in Sec.  2429.24(g) and only where fax equipment is available; or
    (6) Electronic mail (``email''), but only when the receiving party 
has agreed to be served by email.
    (c) If you serve a document under this section, then you must file, 
with the appropriate FLRA office, a statement indicating that the party 
has served that document (a ``statement of service''). If you are filing 
documents electronically using the FLRA's eFiling system, then you must 
certify, in the FLRA's eFiling system and at the time of filing, that 
you have served copies of the filing and any supporting documents on the 
appropriate individual(s) specified in paragraph (a) of this section. 
Regardless of how you file a statement of service with the FLRA, you 
must ensure that your statement of service includes the names of the 
parties and persons that you served, their addresses, the date on which 
you served them, the nature of the document(s) that you served, and the 
manner in which you served the parties or persons that you served. You 
must also sign and date the statement of service, unless you are using 
the FLRA's eFiling system.
    (d) Date of service. For any documents that you serve under this 
section, the date of service depends on the manner in which you serve 
the documents. Specifically, the date of service shall be the date on 
which you have: deposited the served documents in the U.S. mail; 
delivered them in person; deposited them with a commercial-delivery 
service that will provide a record showing the date on which the 
document was tendered to the delivery service; transmitted them by fax 
(where allowed under paragraph (b)(5) of this section); or transmitted 
them by email (where allowed under paragraph (b)(6) of this section).

[45 FR 3516, Jan. 17, 1980, as amended at 62 FR 40924, July 31, 1997; 74 
FR 51745, Oct. 8, 2009; 77 FR 26437, May 4, 2012]



Sec.  2429.28  Petitions for amendment of regulations.

    Any interested person may petition the Authority or General Counsel 
in writing for amendments to any portion of these regulations. Such 
petition shall identify the portion of the regulations involved and 
provide the specific language of the proposed amendment together with a 
statement of grounds in support of such petition.



Sec.  2429.29  Content of filings.

    With one exception, if you file any document with the Authority or 
the Office of Administrative Law Judges in a proceeding covered by this 
subchapter--including any briefs that you upload into the FLRA's eFiling 
system as attachments--and that document exceeds 10 double-spaced pages 
in length, then you must ensure that the document includes a table of 
contents. The one exception is that, if you use the fillable forms in 
the FLRA's eFiling system, then you are not required to submit a table 
of contents to accompany the fillable forms.

[77 FR 26437, May 4, 2012]



PART 2430_AWARDS OF ATTORNEY FEES AND OTHER EXPENSES--Table of Contents



Sec.
2430.1 Purpose.
2430.2 Proceedings affected; eligibility for award.
2430.3 Standards for awards.
2430.4 Allowable fees and expenses.

[[Page 492]]

2430.5 Rulemaking on maximum rates for attorney fees.
2430.6 Contents of application; net worth exhibit; documentation of fees 
          and expenses.
2430.7 When an application may be filed; referral to Administrative Law 
          Judge; stay of proceeding.
2430.8 Filing and service of documents.
2430.9 Answer to application; reply to answer; comments by other 
          parties; extensions of time to file documents.
2430.10 Settlement.
2430.11 Further proceedings.
2430.12 Administrative Law Judge's decision; contents; service; transfer 
          of case to the Authority; contents of record in case.
2430.13 Exceptions to Administrative Law Judge's decision; briefs; 
          action of Authority.
2430.14 Payment of award.

    Authority: 5 U.S.C. 504.

    Source: 46 FR 48623, Oct. 2, 1981, unless otherwise noted.



Sec.  2430.1  Purpose.

    The Equal Assess to Justice Act, 5 U.S.C. 504, provides for the 
award of attorney, agent, or witness fees and other expenses to eligible 
individuals and entities who are parties to Authority adversary 
adjudications. An eligible party may receive an award when it prevails 
over the General Counsel, unless the General Counsel's position in the 
proceeding was substantially justified, or special circumstances make an 
award unjust. The rules in this part describe the parties eligible for 
awards, and the Authority proceeding that is covered. They also set 
forth the procedures for applying for such awards, and the procedures by 
which the Authority will rule on such applications.

[51 FR 33837, Sept. 23, 1986]



Sec.  2430.2  Proceedings affected; eligibility for award.

    (a) The provisions of this part apply to unfair labor practice 
proceedings pending on complaint against a labor organization at any 
time since October 1, 1981.
    (b) A respondent in an unfair labor proceeding which has prevailed 
in the proceeding, or in a significant and discrete portion of the 
proceeding, and who otherwise meets the eligibility requirements of this 
section, is eligible to apply for an award of attorneys fees and other 
expenses allowable under the provisions of Sec.  2430.4 of these rules.
    (1) Applicants eligible to receive an award in proceedings conducted 
by the Authority are any partnership, corporation, association, or 
public or private organization with a net worth of not more than $5 
million ($7 million in cases involving adversary adjudications pending 
on or commenced on or after August 5, 1985) and not more than 500 
employees.
    (2) For the purpose of eligibility, the net worth and number of 
employees of an applicant shall be determined as of the date the 
complaint was issued.
    (3) The employees of an applicant include all persons who regularly 
perform services for remuneration for the applicant, under the 
applicant's direction and control. Part-time employees shall be included 
on a proportional basis.
    (4) An applicant that participates in a proceeding primarily on 
behalf of one or more other persons or entities that would be ineligible 
is not itself eligible for an award.

[46 FR 48623, Oct. 2, 1981, as amended at 51 FR 33837, Sept. 23, 1986]



Sec.  2430.3  Standards for awards.

    (a) An eligible applicant may receive an award for fees and expenses 
incurred in connection with a proceeding, or in a significant and 
discrete portion of the proceeding, unless the position of the General 
Counsel over which the applicant has prevailed was substantially 
justified. The burden of proof that an award should not be made to an 
eligible applicant is on the General Counsel, who may avoid an award by 
showing that its position in initiating the proceeding was reasonable in 
law and fact.
    (b) An award will be reduced or denied if the applicant has unduly 
or unreasonably protracted the proceeding or if special circumstances 
make the award sought unjust.



Sec.  2430.4  Allowable fees and expenses.

    (a)(1)(i) No award for the fee of an attorney or agent under this 
part may exceed $125.00 per hour, or for adversary adjudications 
commenced prior to March 29, 1996, $75.00 per hour, indexed

[[Page 493]]

to reflect cost of living increases as follows:
[GRAPHIC] [TIFF OMITTED] TR28FE00.001

    (ii) The cost of living index to be used is the Consumer Price 
Index, All Urban Consumers, U.S. City Average, All Items (CPI-U). If 
legal services are provided during more than one year, each year shall 
be calculated separately. If an annual average CPI-U for a particular 
year is not yet available, the prior year's annual average CPI-U shall 
be used.
    (2) No award to compensate an expert witness may exceed the highest 
rate that the Authority pays expert witnesses. However, an award may 
also include the reasonable expenses of the attorney, agent, or witness 
as a separate item, if the attorney, agent, or witness ordinarily 
charges clients separately for such expenses.
    (b) In determining the reasonableness of the fee sought for an 
attorney, agent or expert witness, the following matters may be 
considered:
    (1) If the attorney, agent or witness is in practice, his or her 
customary fee for similar services, or, if an employee of the applicant, 
the fully allocated cost of the services;
    (2) The prevailing rate for similar services in the community in 
which the attorney, agent or witness ordinarily performs services;
    (3) The time actually spent in the representation of the applicant;
    (4) The time reasonably spent in light of the difficulty or 
complexity of the issues in the proceeding; and
    (5) Such other factors as may bear on the value of the services 
provided.
    (c) The reasonable cost of any study, analysis, engineering report, 
test, project or similar matters prepared on behalf of an applicant may 
be awarded, to the extent that the charge for the service does not 
exceed the prevailing rate for similar services, and the study or other 
matter was necessary for preparation of the applicant's case.

[46 FR 48623, Oct. 2, 1981, as amended at 64 FR 30861, June 9, 1999; 65 
FR 10374, Feb. 28, 2000]



Sec.  2430.5  Rulemaking on maximum rates for attorney fees.

    If warranted by special factors, attorney fees may be awarded at a 
rate higher than that established in Sec.  2430.4. Any such increase in 
the rate for attorney fees shall be made only upon a petition submitted 
by the applicant, pursuant to Sec.  2430.6. Determinations regarding fee 
adjustments are subject to Authority review as specified in Sec.  
2430.13.

[65 FR 10374, Feb. 28, 2000]



Sec.  2430.6  Contents of application; net worth exhibit; 
documentation of fees and expenses.

    (a) An application for an award of fees and expenses under the Act 
shall identify the applicant and the proceeding for which an award is 
sought. The application shall state the particulars in which the 
applicant has prevailed and identify the positions of the General 
Counsel in the proceeding that the applicant alleges were not 
substantially justified. The application shall also state the number of 
employees of the applicant and describe briefly the type and purpose of 
its organization or business.
    (b) The application shall include a statement that the applicant's 
net worth does not exceed $5 million.
    (c) The application shall state the amount of fees and expenses for 
which an award is sought.
    (d) The application may also include any other matters that the 
applicant wishes the Authority to consider in determining whether and in 
what amount an award should be made.
    (e) The application shall be signed by the applicant or an 
authorized officer

[[Page 494]]

or attorney of the applicant. It shall also contain or be accompanied by 
a written verification under oath or under penalty of perjury that the 
information provided in the application is true.
    (f) Each applicant must provide with its application a detailed 
exhibit showing the net worth of the applicant when the proceeding was 
initiated. The exhibit may be in any form convenient to the applicant 
that provides full disclosure of the applicant's assets and liabilities 
and is sufficient to determine whether the applicant qualifies under the 
standards in this part. The Administrative Law Judge may require an 
applicant to file additional information to determine its eligibility 
for an award.
    (g) The application shall be accompanied by full documentation of 
the fees and expenses for which an award is sought. A separate itemized 
statement shall be submitted for each professional firm or individual 
whose services are covered by the application, showing the hours spent 
in connection with the proceeding by each individual, the rate at which 
each fee has been computed, any expenses for which reimbursement is 
sought, the total amount claimed, and the total amount paid or payable 
by the applicant or by any other person or entity for the services 
provided. The Administrative Law Judge may require the applicant to 
provide vouchers, receipts, or other substantiation for any expenses 
claimed.



Sec.  2430.7  When an application may be filed; referral to 
Administrative Law Judge; stay of proceeding.

    (a) An application may be filed after entry of the final order 
establishing that the applicant has prevailed in the proceeding, or in a 
significant and discrete substantive portion of the proceeding, but in 
no case later than thirty (30) days after the entry of the Authority's 
final order in the proceeding. The application for an award shall be 
filed with the Authority in Washington, DC, in an original and four 
copies, and served on all parties to the unfair labor practice 
proceeding. Service of the application shall be in the same manner as 
prescribed in Sec. Sec.  2429.22 and 2429.27. Upon filing, the 
application shall be referred by the Authority to the Administrative Law 
Judge who heard the proceeding upon which the application is based, or, 
in the event the proceeding had not previously been heard by an 
Administrative Law Judge, it shall be referred to the Chief 
Administrative Law Judge for designation of an Administrative Law Judge, 
to consider the application. When the Administrative Law Judge to whom 
the application has been referred is or becomes unavailable, the 
provisions of Sec.  2423.20 shall be applicable.
    (b) Proceedings for the award of fees and other expenses, but not 
the time limit of this section for filing an application for an award, 
shall be stayed pending final disposition of the case, in the event any 
persons seeks Authority reconsideration or court review of the Authority 
decision that forms the basis for the application for fees and expenses.



Sec.  2430.8  Filing and service of documents.

    All pleadings or documents after the time the case is referred by 
the Authority to an Administative Law Judge, until the issuance of the 
Judge's decision, shall be filed in an original and four copies with the 
Administrative Law Judge and served on all parties to the proceeding. 
Service of such documents shall be in the same manner as prescribed in 
Sec. Sec.  2429.22 and 2429.27.



Sec.  2430.9  Answer to application; reply to answer; 
comments by other parties; extensions of time to file documents.

    (a) Within 30 days after service of an application, the General 
Counsel may file an answer to the application. The filing of a motion to 
dismiss the application shall stay the time for filing an answer to a 
date thirty (30) days after issuance of any order denying the motion.
    (b) If the General Counsel and the applicant believe that the issues 
in the fee application can be settled, they may jointly file a statement 
of their intent to negotiate toward a settlement. The filing of such a 
statement shall extend the time for filing an answer for an additional 
30 days.

[[Page 495]]

    (c) The answer shall explain in detail any objections to the award 
requested, and identify the facts relied on in support of the General 
Counsel's position. If the answer is based on alleged facts not already 
in the record of the proceeding, supporting affidavits shall be provided 
or a request made for further proceedings under Sec.  2430.11.
    (d) Within fifteen (15) days after service of an answer, the 
applicant may file a reply. If the reply is based on alleged facts not 
already in the record of the proceeding, supporting affidavits shall be 
provided or a request made for further proceedings under Sec.  2430.11.
    (e) Any party to a proceeding other than the applicant and the 
General Counsel may file comments on an application within 30 days after 
it is served, or on an answer within 15 days after it is served. A 
commenting party may not participate further in the proceeding on the 
application unless the Administrative Law Judge determines that such 
participation is required in order to permit full exploration of matters 
raised in the comments.
    (f) Motions for extensions of time to file documents permitted by 
this section or Sec.  2430.11 shall be filed with the Administrative Law 
Judge not less than five (5) days before the due date of the document.



Sec.  2430.10  Settlement.

    The applicant and the General Counsel may agree on a proposed 
settlement of the award before final action on the application. If an 
applicant and the General Counsel agree on a proposed settlement of an 
award before an application has been filed, the proposed settlement 
shall be filed with the application. All such settlements shall be 
subject to approval by the Authority.



Sec.  2430.11  Further proceedings.

    (a) The determination of an award may be made on the basis of the 
documents in the record, or the Administrative Law Judge, upon request 
of either the applicant or the General Counsel, or on his or her own 
initiative, may order further proceedings. Such further proceedings may 
include, but shall not be limited to, an informal conference, oral 
argument, additional written submissions, or an evidentiary hearing.
    (b) A request that the Administrative Law Judge order further 
proceedings under this section shall specifically identify the disputed 
issues and the evidence sought to be adduced, and shall explain why the 
additional proceedings are necessary to resolve the issues.
    (c) An order of the Administrative Law Judge scheduling oral 
argument, additional written submissions, or an evidentiary hearing, 
shall specify the issues to be considered in such argument, submission, 
or hearing.
    (d) Any evidentiary hearing held pursuant to this section shall be 
conducted not earlier than forty-five (45) days after the date on which 
the application is served. In all other respects, such hearing shall be 
conducted in accordance with Sec. Sec.  2423.14, 2423.16, 2423.17, 
2423.19 through 2423.21, 2423.23, and 2423.24, insofar as these sections 
are consistent with the provisions of this part.



Sec.  2430.12  Administrative Law Judge's decision; contents; service; 
transfer of case to the Authority; contents of record in case.

    (a) Upon conclusion of proceedings under Sec. Sec.  2430.6 to 
2430.11, the Administrative Law Judge shall prepare a decision. The 
decision shall include written findings and conclusions on the 
applicant's status as a prevailing party and eligibility, and an 
explanation of the reasons for any difference between the amount 
requested and the amount awarded. The decision shall also include, if at 
issue, findings on whether the agency's position was substantially 
justified, whether the applicant unduly protracted the proceedings, or 
whether special circumstances make an award unjust. The Administrative 
Law Judge shall cause the decision to be served promptly on all parties 
to the proceeding. Thereafter, the Administrative Law Judge shall 
transmit the case to the Authority, including the judge's decision and 
the record. Service of the Administrative Law Judge's decision and of 
the order transferring the case to the Board shall be complete upon 
mailing.
    (b) The record in a proceeding on an application for an award of 
fees and expenses shall consist of the application

[[Page 496]]

for an award of fees and expenses and any amendments or attachments 
thereto, the net worth exhibit, the answer and any amendments or 
attachments thereto, any reply to the answer, any comments by other 
parties, motions, rulings, orders, stipulations, written submissions, 
the stenographic transcript of oral argument, the stenographic 
transcript of the hearing, exhibits and depositions, together with the 
Administrative Law Judge's decision, and the exceptions and briefs as 
provided in Sec.  2430.13, and the record of the unfair labor practice 
proceeding upon which the application is based.



Sec.  2430.13  Exceptions to Administrative Law Judge's decision; briefs; 
action of Authority.

    Procedures before the Authority, including the filing of exceptions 
to the administrative law judge's decision rendered pursuant to Sec.  
2430.12, and action by the Authority, shall be in accordance with 
Sec. Sec.  2423.26(c), 2423.27, and 2423.28 of these rules. The 
Authority's review of the matter shall be in accordance with Sec.  
2423.29(a).



Sec.  2430.14  Payment of award.

    To obtain payment of an award made by the Authority the applicant 
shall submit to the Executive Director of the Authority a copy of the 
Authority's final decision granting the award, accompanied by a 
statement that the applicant will not seek court review of the decision. 
The amount awarded will then be paid unless judicial review of the 
award, or of the underlying decision, has been sought by the applicant 
or any other party to the proceeding.

[[Page 497]]



               SUBCHAPTER D_FEDERAL SERVICE IMPASSES PANEL





PART 2470_GENERAL--Table of Contents



                            Subpart A_Purpose

Sec.
2470.1 Purpose.

                          Subpart B_Definitions

2470.2 Definitions.

    Authority: 3 U.S.C. 431; 5 U.S.C. 7119, 7134.



                            Subpart A_Purpose



Sec.  2470.1  Purpose.

    The regulations contained in this subchapter are intended to 
implement the provisions of section 7119 of title 5 and, where 
applicable, section 431 of title 3 of the United States Code. They 
prescribe procedures and methods which the Federal Service Impasses 
Panel may utilize in the resolution of negotiation impasses when 
voluntary arrangements, including the services of the Federal Mediation 
and Conciliation Service or any other third-party meditation, fail to 
resolve the disputes. It is the policy of the Panel to encourage labor 
and management to resolve disputes on terms that are mutually agreeable 
at any stage of the Panel's procedures.

[63 FR 46159, Aug. 31, 1998]



                          Subpart B_Definitions



Sec.  2470.2  Definitions.

    (a) The terms agency, labor organization, and conditions of 
employment as used in this subchapter shall have the meaning set forth 
in 5 U.S.C. 7103(a). When used in connection with 3 U.S.C. 431, the term 
agency as used in the Panel's regulations in this subchapter means an 
employing office as defined in 3 U.S.C. 401(a)(4).
    (b) The term Executive Director means the Executive Director of the 
Panel.
    (c) The terms designated representative or designee of the Panel 
means a Panel member, a staff member, or other individual designated by 
the Panel to act on its behalf.
    (d) The term hearing means a factfinding hearing, arbitration 
hearing, or any other hearing procedure deemed necessary to accomplish 
the purposes of 5 U.S.C. 7119.
    (e) The term impasse means that point in the negotiation of 
conditions of employment at which the parties are unable to reach 
agreement, notwithstanding their efforts to do so by direct negotiations 
and by the use of mediation or other voluntary arrangements for 
settlement.
    (f) The term Panel means the Federal Service Impasses Panel 
described in 5 U.S.C. 7119(c) or a quorum thereof.
    (g) The term party means the agency or the labor organization 
participating in the negotiation of conditions of employment.
    (h) The term quorum means a majority of the members of the Panel.
    (i) The term voluntary arrangements means any method adopted by the 
parties for the purpose of assisting them in their resolution of a 
negotiation dispute which is not inconsistent with the provisions of 5 
U.S.C. 7119.

[45 FR 3520, Jan. 17, 1980, as amended at 48 FR 19693, May 2, 1983; 63 
FR 46159, Aug. 31, 1998]



PART 2471_PROCEDURES OF THE PANEL--Table of Contents



Sec.
2471.1 Request for Panel consideration; request for Panel approval of 
          binding arbitration.
2471.2 Request form.
2471.3 Content of request.
2471.4 Where to file.
2471.5 Filing and service.
2471.6 Investigation of request; Panel procedures; approval of binding 
          arbitration.
2471.7 Preliminary factfinding procedures.
2471.8 Conduct of factfinding and other hearings; prehearing 
          conferences.
2471.9 Report and recommendations.
2471.10 Duties of each party following receipt of recommendations.
2471.11 Final action by the Panel.
2471.12 Inconsistent labor agreement provisions.

    Authority: 5 U.S.C. 7119, 7134.

    Source: 45 FR 3520, Jan. 17, 1980, unless otherwise noted.

[[Page 498]]



Sec.  2471.1  Request for Panel consideration; request for Panel 
approval of binding arbitration.

    If voluntary arrangements, including the services of the Federal 
Mediation and Conciliation Service or any other third-party mediation, 
fail to resolve a negotiation impasse:
    (a) Either party, or the parties jointly, may request the Panel to 
consider the matter by filing a request as hereinafter provided; or the 
Panel may, pursuant to 5 U.S.C. 7119(c)(1), undertake consideration of 
the matter upon request of (i) the Federal Mediation and Conciliation 
Service, or (ii) the Executive Director; or
    (b) The parties may jointly request the Panel to approve any 
procedure, which they have agreed to adopt, for binding arbitration of 
the negotiation impasse by filing a request as hereinafter provided.



Sec.  2471.2  Request form.

    A form is available for parties to use in filing either a request 
for consideration of an impasse or an approval of a binding arbitration 
procedure. Copies are available on the FLRA's Web site at www.flra.gov, 
or from the Office of the Executive Director, Federal Service Impasses 
Panel, Suite 200, 1400 K Street NW., Washington, DC 20424-0001. 
Telephone (202) 218-7790. Use of the form is not required, provided that 
the request includes all of the information set forth in Sec.  2471.3.

[77 FR 5988, Feb. 7, 2012]



Sec.  2471.3  Content of request.

    (a) A request from a party or parties to the Panel for consideration 
of an impasse must be in writing and include the following information:
    (1) Identification of the parties and individuals authorized to act 
on their behalf, including their addresses, telephone numbers, and 
facsimile numbers;
    (2) Statement of issues at impasse and the summary positions of the 
initiating party or parties with respect to those issues; and
    (3) Number, length, and dates of negotiation and mediation sessions 
held, including the nature and extent of all other voluntary 
arrangements utilized.
    (b) A request for approval of a binding arbitration procedure must 
be in writing, jointly filed by the parties, and include the following 
information about the pending impasse:
    (1) Identification of the parties and individuals authorized to act 
on their behalf, including their addresses, telephone numbers, and 
facsimile numbers;
    (2) Brief description of the impasse including the issues to be 
submitted to the arbitrator;
    (3) Number, length, and dates of negotiation and mediation sessions 
held, including the nature and extent of all other voluntary 
arrangements utilized;
    (4) Statement as to whether any of the proposals to be submitted to 
the arbitrator contain questions concerning the duty to bargain and a 
statement of each party's position concerning such questions; and
    (5) Statement of the arbitration procedures to be used, including 
the type of arbitration, the method of selecting the arbitrator, and the 
arrangement for paying for the proceedings or, in the alternative, those 
provisions of the parties' labor agreement which contain this 
information.

[45 FR 3520, Jan. 17, 1980, as amended at 61 FR 41294, Aug. 8, 1996]



Sec.  2471.4  Where to file.

    Requests to the Panel provided for in this part must either be filed 
electronically through use of the eFiling system on the FLRA's Web site 
at www.flra.gov, or be addressed to the Executive Director, Federal 
Service Impasses Panel, Suite 200, 1400 K Street NW., Washington, DC 
20424-0001. All inquiries or correspondence on the status of impasses or 
other related matters must be submitted by regular mail to the street 
address above, by using the telephone number (202) 218-7790, or by using 
the facsimile number (202) 482-6674.

[77 FR 5988, Feb. 7, 2012]



Sec.  2471.5  Filing and service.

    (a) Filing and service of request. (1) Any party submitting a 
request for Panel consideration of an impasse or a request for approval 
of a binding arbitration procedure shall file an original and one copy 
with the Panel, unless

[[Page 499]]

the request is filed electronically as discussed below. A clean copy may 
be submitted for the original. Requests may be submitted in person, 
electronically through use of the eFiling system on the FLRA's Web site 
at www.flra.gov, or by registered mail, certified mail, regular mail, or 
commercial delivery. Requests also may be accepted by the Panel if 
transmitted to the facsimile machine of its office. A party submitting a 
request by facsimile shall also file an original for the Panel's 
records, but failure to do so shall not affect the validity of the 
filing by facsimile, if otherwise proper.
    (2) The party submitting the request shall serve a copy of such 
request upon all counsel of record or other designated representative(s) 
of parties, upon parties not so represented, and upon any mediation 
service which may have been utilized. Service upon such counsel or 
representative shall constitute service upon the party, but a copy also 
shall be transmitted to the party. Service of a request may be made in 
person or by registered mail, certified mail, regular mail, or 
commercial delivery. With the permission of the person receiving the 
request, service may be made by electronic or facsimile transmission, or 
by any other agreed-upon method. When the Panel acts on a request from 
the Federal Mediation and Conciliation Service or acts on a request from 
the Executive Director under Sec.  2471.1(a), it will notify the parties 
to the dispute, their counsel of record, if any, and any mediation 
service which may have been utilized.
    (b) Filing and service of other documents. (1) Any party submitting 
a response to, or other document in connection with, a request for Panel 
consideration of an impasse or a request for approval of a binding 
arbitration procedure shall file an original and one copy with the 
Panel, with the exception of documents filed simultaneously with the 
electronic filing of a request through use of the FLRA's eFiling system. 
Documents may be submitted to the Panel in person or by registered mail, 
certified mail, regular mail, commercial delivery, or, in the case of 
documents submitted simultaneously with the electronic filing of a 
request for Panel assistance, may be uploaded electronically through use 
of the FLRA's eFiling system at www.flra.gov. Documents may also be 
accepted by the Panel if transmitted electronically or to the facsimile 
machine of the Panel's office, but only with advance permission, which 
may be obtained by telephone. A party submitting a document by facsimile 
shall also file an original for the Panel's records, but failure to do 
so shall not affect the validity of the submission, if otherwise proper.
    (2) The party submitting the document shall serve a copy of such 
request upon all counsel of record or other designated representative(s) 
of parties, or upon parties not so represented. Service upon such 
counsel or representative shall constitute service upon the party, but a 
copy also shall be transmitted to the party. Service of a document may 
be made in person or by registered mail, certified mail, regular mail, 
or commercial delivery. With the permission of the person receiving the 
document, service may be made by electronic or facsimile transmission, 
or by any other agreed-upon method.
    (c) A signed and dated statement of service shall accompany each 
document submitted to the Panel, unless the document is a request under 
Sec.  2471.5(a) that is filed electronically through use of the FLRA's 
eFiling system. For requests under Sec.  2471.5(a) that are filed 
electronically through use of the FLRA's eFiling system, the filing 
party shall certify, in the FLRA's eFiling system and at the time of 
filing, that copies of the request and any supporting documents have 
been served as required. The statement of service, however filed, shall 
include the names of the parties and persons served, their addresses, 
the date of service, the nature of the document served, and the manner 
in which service was made.
    (d) The date of service or date served shall be the day when the 
matter served, if properly addressed, is deposited in the U.S. mail or 
is delivered in person or is deposited with a commercial-delivery 
service that will provide a record showing the date the document was 
tendered to the delivery service. Where service is made by electronic or 
facsimile transmission, the date of

[[Page 500]]

service shall be the date of transmission.
    (e) Unless otherwise provided by the Panel or its designated 
representatives, any document or paper filed with the Panel under this 
section, together with any enclosure filed therewith, shall be 
typewritten on 8\1/2\ x 11 inch plain white paper, shall have margins no 
less than 1 inch on each side, shall be in typeface no smaller than 10 
characters per inch, and shall be numbered consecutively. Nonconforming 
papers may, at the Panel's discretion, be rejected.

[48 FR 19694, May 2, 1983, as amended at 61 FR 41294, Aug. 8, 1996; 77 
FR 5988, Feb. 7, 2012]



Sec.  2471.6  Investigation of request; Panel procedures; 
approval of binding arbitration.

    (a) Upon receipt of a request for consideration of an impasse, the 
Panel or its designee will promptly conduct an investigation, consulting 
when necessary with the parties and with any mediation service utilized. 
After due consideration, the Panel shall either:
    (1) Decline to assert jurisdiction in the event that it finds that 
no impasse exists or that there is other good cause for not asserting 
jurisdiction, in whole or in part, and so advise the parties in writing, 
stating its reasons; or
    (2) Assert jurisdiction and
    (i) Recommend to the parties procedures for the resolution of the 
impasse; and/or
    (ii) Assist the parties in resolving the impasse through whatever 
methods and procedures the Panel considers appropriate. The procedures 
utilized by the Panel may include, but are not limited to: informal 
conferences with a Panel designee; factfinding (by a Panel designee or a 
private factfinder); written submissions; show cause orders; oral 
presentations to the Panel; and arbitration or mediation-arbitration (by 
a Panel designee or a private arbitrator). Following procedures used by 
the Panel, it may issue a report to the parties containing 
recommendations for settlement prior to taking final action to resolve 
the impasse.
    (b) Upon receipt of a request for approval of a binding arbitration 
procedure, the Panel or its designee will promptly conduct an 
investigation, consulting when necessary with the parties and with any 
mediation service utilized. After due consideration, the Panel shall 
promptly approve or disapprove the request, normally within five (5) 
workdays.

[45 FR 3520, Jan. 17, 1980, as amended at 61 FR 41294, Aug. 8, 1996]



Sec.  2471.7  Preliminary factfinding procedures.

    When the Panel determines that a factfinding hearing is necessary 
under Sec.  2471.6, and it appoints one or more of its designees to 
conduct such hearing, it will issue and serve upon each of the parties a 
notice of hearing and a notice of prehearing conference, if any. The 
notice will state:
    (a) The names of the parties to the dispute;
    (b) The date, time, place, type, and purpose of the hearing;
    (c) The date, time, place, and purpose of the prehearing conference, 
if any;
    (d) The name of the designated representatives appointed by the 
Panel;
    (e) The issues to be resolved; and
    (f) The method, if any, by which the hearing shall be recorded.

[45 FR 3520, Jan. 17, 1980, as amended at 48 FR 19694, May 2, 1983; 61 
FR 41295, Aug. 8, 1996]



Sec.  2471.8  Conduct of factfinding and other hearings; 
prehearing conferences.

    (a) A designated representative of the Panel, when so appointed to 
conduct a hearing, shall have the authority on behalf of the Panel to:
    (1) Administer oaths, take the testimony or deposition of any person 
under oath, receive other evidence, and issue subpenas;
    (2) Conduct the hearing in open, or in closed session at the 
discretion of the designated representative for good cause shown;
    (3) Rule on motions and requests for appearance of witnesses and the 
production of records;
    (4) Designate the date on which posthearing briefs, if any, shall be 
submitted.
    (5) Determine all procedural matters concerning the hearing, 
including the length of sessions, conduct of persons in attendance, 
recesses, continuances, and adjournments; and take any other

[[Page 501]]

appropriate procedural action which, in the judgment of the designated 
representative, will promote the purpose and objectives of the hearing.
    (b) A prehearing conference may be conducted by the designated 
representative of the Panel in order to:
    (1) Inform the parties of the purpose of the hearing and the 
procedures under which it will take place;
    (2) Explore the possibilities of obtaining stipulations of fact;
    (3) Clarify the positions of the parties with respect to the issues 
to be heard; and
    (4) Discuss any other relevant matters which will assist the parties 
in the resolution of the dispute.

[45 FR 3520, Jan. 17, 1980, as amended at 48 FR 19694, May 2, 1983]



Sec.  2471.9  Report and recommendations.

    (a) When a report is issued after a factfinding hearing is conducted 
pursuant to Sec.  2471.7 and 2471.8, it normally shall be in writing 
and, when authorized by the Panel, shall contain recommendations.
    (b) A report of the designated representative containing 
recommendations shall be submitted to the parties, with two (2) copies 
to the Executive Director, within a period normally not to exceed thirty 
(30) calendar days after receipt of the transcript or briefs, if any.
    (c) A report of the designated representative not containing 
recommendations shall be submitted to the Panel with a copy to each 
party within a period normally not to exceed thirty (30) calendar days 
after receipt of the transcript or briefs, if any. The Panel shall then 
take whatever action it may consider appropriate or necessary to resolve 
the impasse.

[45 FR 3520, Jan. 17, 1980, as amended at 61 FR 41295, Aug. 8, 1996]



Sec.  2471.10  Duties of each party following receipt of recommendations.

    (a) Within thirty (30) calendar days after receipt of a report 
containing recommendations of the Panel or its designated 
representative, each party shall, after conferring with the other, 
either:
    (1) Accept the recommendations and so notify the Executive Director; 
or
    (2) Reach a settlement of all unresolved issues and submit a written 
settlement statement to the Executive Director; or
    (3) Submit a written statement to the Executive Director setting 
forth the reasons for not accepting the recommendations and for not 
reaching a settlement of all unresolved issues.
    (b) A reasonable extension of time may be authorized by the 
Executive Director for good cause shown when requested in writing by 
either party prior to the expiration of the time limits.

[45 FR 3520, Jan. 17, 1980, as amended at 48 FR 19694, May 2, 1983]



Sec.  2471.11  Final action by the Panel.

    (a) If the parties do not arrive at a settlement as a result of or 
during actions taken under Sec. Sec.  2471.6(a)(2), 2471.7, 2471.8, 
2471.9, and 2471.10, the Panel may take whatever action is necessary and 
not inconsistent with 5 U.S.C. chapter 71 to resolve the impasse, 
including but not limited to, methods and procedures which the Panel 
considers appropriate, such as directing the parties to accept a 
factfinder's recommendations, ordering binding arbitration conducted 
according to whatever procedure the Panel deems suitable, and rendering 
a binding decision.
    (b) In preparation for taking such final action, the Panel may hold 
hearings, administer oaths, take the testimony or deposition of any 
person under oath, and issue subpenas as provided in 5 U.S.C. 7132, or 
it may appoint or designate one or more individuals pursuant to 5 U.S.C. 
7119(c)(4) to exercise such authority on its behalf.
    (c) When the exercise of authority under this section requires the 
holding of a hearing, the procedure contained in Sec.  2471.8 shall 
apply.
    (d) Notice of any final action of the Panel shall be promptly served 
upon the parties, and the action shall be binding on such parties during 
the term of the agreement, unless they agree otherwise.

[45 FR 3520, Jan. 17, 1980, as amended at 48 FR 19694, May 2, 1983]

[[Page 502]]



Sec.  2471.12  Inconsistent labor agreement provisions.

    Any provisions of the parties' labor agreements relating to impasse 
resolution which are inconsistent with the provisions of either 5 U.S.C. 
7119 or the procedures of the Panel shall be deemed to be superseded, 
unless such provisions are permitted under 5 U.S.C. 7135.



PART 2472_IMPASSES ARISING PURSUANT TO AGENCY DETERMINATIONS NOT TO ESTABLISH 
OR TO TERMINATE FLEXIBLE OR COMPRESSED WORK SCHEDULES--Table of Contents



                    Subpart A_Purpose and Definitions

Sec.
2472.1 Purpose.
2472.2 Definitions.

                    Subpart B_Procedures of the Panel

2472.3 Request for Panel consideration.
2472.4 Content of request.
2472.5 Where to file.
2472.6 Filing and service.
2472.7 Investigation of request; Panel assistance.
2472.8 Preliminary hearing procedures.
2472.9 Conduct of hearing and prehearing conference.
2472.10 Reports.
2472.11 Final action by the Panel.

    Authority: 5 U.S.C. 6131.

    Source: 48 FR 19695, May 2, 1983, unless otherwise noted.



                    Subpart A_Purpose and Definitions



Sec.  2472.1  Purpose.

    The regulations contained in this Part are intended to implement the 
provisions of section 6131 of title 5 of the United States Code. They 
prescribe procedures and methods which the Federal Service Impasses 
Panel may utilize in the resolution of negotiations impasses arising 
from agency determinations not to establish or to terminate flexible and 
compressed work schedules.



Sec.  2472.2  Definitions.

    (a) The term the Act means the Federal Employees Flexible and 
Compressed Work Schedules Act of 1982, Pub. L. 97-221, 5 U.S.C. 6120 et 
seq.
    (b) The term adverse agency impact shall have the meaning set forth 
in 5 U.S.C. 6131(b).
    (c) The term agency shall have the meaning set forth in 5 U.S.C. 
6121(1).
    (d) The term duly authorized delegatee means an official who has 
been delegated the authority to act for the head of the agency in the 
matter concerned.
    (e) The term agency determination means a determination: (1) Not to 
establish a flexible or compressed work schedule under 5 U.S.C. 
6131(c)(2); or (2) to terminate such a schedule under 5 U.S.C. 
6131(c)(3).
    (f) The terms collective bargaining agreement and exclusive 
representative shall have the meanings set forth in 5 U.S.C. 6121(8).
    (g) The term Executive Director means the Executive Director of the 
Panel.
    (h) The terms designated representative or designee of the Panel 
means a Panel member, staff member, or other individual designated by 
the Panel to act on its behalf.
    (i) The term flexible and compressed work schedules shall have the 
meaning set forth in 5 U.S.C. 6121 et seq.
    (j) The term hearing means a factfinding hearing or any other 
hearing procedures deemed necessary to accomplish the purpose of 5 
U.S.C. 6131.
    (k) The term impasse means that point in the negotiation of flexible 
and compressed work schedules at which the parties are unable to reach 
agreement on whether a schedule has had or would have an adverse agency 
impact.
    (l) The term Panel means the Federal Service Impasses Panel 
described in 5 U.S.C. 7119(c) or a quorum thereof.
    (m) The term party means the agency or the exclusive representative 
participating in negotiations concerning flexible and compressed work 
schedules.
    (n) The term quorum means a majority of the members of the Panel.
    (o) The term schedule(s) means flexible and compressed work 
schedules.

[48 FR 19695, May 2, 1983, as amended at 61 FR 41295, Aug. 8, 1996]

[[Page 503]]



                    Subpart B_Procedures of the Panel



Sec.  2472.3  Request for Panel consideration.

    Either party, or the parties jointly, may request the Panel to 
resolve an impasse resulting from an agency determination not to 
establish or to terminate a flexible or compressed work schedule by 
filing a request as hereinafter provided. A form is available for use by 
the parties in filing a request with the Panel. Copies are available on 
the FLRA's Web site at www.flra.gov, or from the Office of the Executive 
Director, Federal Service Impasses Panel, Suite 200, 1400 K Street NW., 
Washington, DC 20424-0001. Telephone (202) 218-7790. Fax (202) 482-6674. 
Use of the form is not required provided that the request includes all 
of the information set forth in Sec.  2472.4.

[77 FR 5989, Feb. 7, 2012]



Sec.  2472.4  Content of request.

    (a) A request from a party or parties to the Panel for consideration 
of an impasse arising from an agency determination not to establish or 
to terminate a flexible or compressed work schedule under section 6131 
(c)(2) or (c)(3) of the Act must be in writing and shall include the 
following information:
    (1) Identification of the parties and individuals authorized to act 
on their behalf, including their addresses, telephone numbers, and 
facsimile numbers;
    (2) Description of the bargaining unit involved in the dispute and 
the date recognition was accorded to the exclusive representative;
    (3) Number, length, and dates of negotiation sessions held;
    (4) A copy of any collective bargaining agreement between the 
parties and any other agreements concerning flexible and compressed work 
schedules;
    (5) A copy of the schedule or proposed schedule, if any, which is 
the subject of the agency's determination;
    (6) A copy of the agency's written determination and the finding on 
which the determination is based, including, in a case where the finding 
is made by a duly authorized delegatee, evidence of a specific 
delegation of authority to make such a finding; and
    (7) A summary of the position of the initiating party or parties 
with respect to the agency's determination.

[48 FR 19695, May 2, 1983, as amended at 61 FR 41295, Aug. 8, 1996]



Sec.  2472.5  Where to file.

    Requests to the Panel provided for in this part must either be filed 
electronically through use of the FLRA's eFiling system on the FLRA's 
Web site at www.flra.gov, or be addressed to the Executive Director, 
Federal Service Impasses Panel, Suite 200, 1400 K Street NW., 
Washington, DC 20424-0001. All inquiries or correspondence on the status 
of impasses or other related matters must be submitted by regular mail 
to the street address above, by using the telephone number (202) 218-
7790, or by using the facsimile number (202) 482-6674.

[77 FR 5989, Feb. 7, 2012]



Sec.  2472.6  Filing and service.

    (a) Filing and service of request. (1) Any party submitting a 
request for Panel consideration of an impasse filed pursuant to Sec.  
2472.3 of these rules shall file an original and one copy with the Panel 
unless the request is filed electronically through use of the FLRA's 
eFiling system. A clean copy may be submitted for the original. Requests 
may be submitted in person, electronically, or by registered mail, 
certified mail, regular mail, or commercial delivery. Requests will also 
be accepted by the Panel if transmitted to the facsimile machine of its 
office. A party submitting a request by facsimile shall also file an 
original for the Panel's records, but failure to do so shall not affect 
the validity of the filing by facsimile, if otherwise proper.
    (2) The party submitting the request shall serve a copy of such 
request upon all counsel of record or other designated representative(s) 
of parties, and upon parties not so represented. Service upon such 
counsel or representative shall constitute service upon the party, but a 
copy also shall be transmitted to the party. Service of a request may be 
made in person or by registered mail, certified mail, regular

[[Page 504]]

mail, or commercial delivery. With the permission of the person 
receiving the request, service may be made by facsimile or electronic 
transmission, or by any other agreed-upon method.
    (b) Filing and service of other documents. (1) Any party submitting 
a response to, or other document in connection with, a request for Panel 
consideration of an impasse filed pursuant to Sec.  2472.3 shall file an 
original and one copy with the Panel, with the exception of documents 
that are filed simultaneously with the electronic filing of a request 
for Panel consideration. A clean copy may be submitted for the original. 
Documents may be submitted to the Panel in person or by registered mail, 
certified mail, regular mail, commercial delivery, or, in the case of 
documents submitted simultaneously with the electronic filing of a 
request for Panel consideration, may be uploaded electronically through 
use of the FLRA's eFiling system at www.flra.gov. Documents may also be 
accepted by the Panel if transmitted electronically or to the facsimile 
machine of its office, but only with advance permission, which may be 
obtained by telephone. A party submitting a document by facsimile shall 
also file an original for the Panel's records, but failure to do so 
shall not affect the validity of the submission, if otherwise proper.
    (2) The party submitting the document shall serve a copy of such 
request upon all counsel of record or other designated representative(s) 
of parties, or upon parties not so represented. Service of a document 
may be made in person or by registered mail, certified mail, regular 
mail, or commercial delivery. With the permission of the person 
receiving the document, service may be made by electronic or facsimile 
transmission, or by any other agreed-upon method.
    (c) A signed and dated statement of service shall accompany each 
document submitted to the Panel, unless the document is a request under 
Sec.  2472.3 that is filed electronically. For requests under Sec.  
2472.3 that are filed electronically, the filing party shall certify, in 
the FLRA's eFiling system and at the time of filing, that copies of the 
request and any supporting documents have been served as required. The 
statement of service, however filed, shall include the names of the 
parties and persons served, their addresses, the date of service, the 
nature of the document served, and the manner in which service was made.
    (d) The date of service or date served shall be the day when the 
matter served, if properly addressed, is deposited in the U.S. mail, is 
delivered in person, or is deposited with a commercial-delivery service 
that will provide a record showing the date the document was tendered to 
the delivery service. Where service is made by electronic or facsimile 
transmission, the date of service shall be the date of transmission.
    (e) Unless otherwise provided by the Panel or its designated 
representatives, any document or paper filed with the Panel under this 
part, together with any enclosure filed therewith, shall be typewritten 
on 8\1/2\ x 11 inch plain white paper, shall have margins no less than 1 
inch on each side, shall be in typeface no smaller than 10 characters 
per inch, and shall be numbered consecutively. Nonconforming papers may, 
at the Panel's discretion, be rejected.
    (f) An impasse arising pursuant to section 6131(c) (2) or (3) of the 
Act will not be considered to be filed, and no Panel action will be 
taken, until the party initiating the request has complied with Sec.  
2472.4, 2472.5, and 2472.6 of these regulations.

[48 FR 19695, May 2, 1983. Redesignated and amended at 61 FR 41295, Aug. 
8, 1996; 77 FR 5989, Feb. 7, 2012]



Sec.  2472.7  Investigation of request; Panel assistance.

    (a) Upon receipt of a request for consideration of an impasse filed 
in accordance with these rules, the Panel or its designee shall promptly 
conduct an investigation, consulting when necessary with the parties. 
After due consideration, the Panel shall determine the procedures by 
which the impasse shall be resolved and shall notify the parties of its 
determination.
    (b) The procedures utilized by the Panel shall afford the parties an 
opportunity to present their positions, including supporting evidence 
and arguments orally and/or in writing. They

[[Page 505]]

include, but are not limited to: informal conferences with a Panel 
designee; factfinding (by a Panel designee or a private factfinder); 
written submissions; show cause orders; and oral presentations to the 
Panel.

[48 FR 19695, May 2, 1983. Redesignated and amended at 61 FR 41295, 
41296, Aug. 8, 1996]



Sec.  2472.8  Preliminary hearing procedures.

    When the Panel determines that a hearing shall be held, and it 
appoints one or more of its designees to conduct such a hearing, it will 
issue and serve upon each of the parties a notice of hearing and a 
notice of prehearing conference, if any. The notice will state:
    (a) The names of the parties to the dispute;
    (b) The date, time, place, type, and purpose of the hearing;
    (c) The date, time, place, and purpose of the prehearing conference, 
if any;
    (d) The name of the designated representative(s) appointed by the 
Panel;
    (e) The issue(s) to be resolved; and
    (f) The method, if any, by which the hearing shall be transcribed.

[61 FR 41296, Aug. 8, 1996]



Sec.  2472.9  Conduct of hearing and prehearing conference.

    (a) A designated representative of the Panel, when so appointed to 
conduct a hearing, shall have the authority on behalf of the Panel to:
    (1) Administer oaths, take the testimony or deposition of any person 
under oath, receive other evidence, and issue subpoenas;
    (2) Conduct the hearing in open or in closed session at the 
discretion of the designated representative for good cause shown;
    (3) Rule on motions and requests for appearance of witnesses and the 
production of records;
    (4) Designate the date on which posthearing briefs, if any, shall be 
submitted; and
    (5) Determine all procedural matters concerning the hearing, 
including the length of sessions, conduct of persons in attendance, 
recesses, continuances, and adjournments; and take any other action 
which, in the judgment of the designated representative, will promote 
the purpose and objectives of the hearing.
    (b) A prehearing conference may be conducted by the designated 
representative of the Panel to:
    (1) Inform the parties of the purpose of the hearing and the 
procedures under which it will take place;
    (2) Explore the possibilities of obtaining stipulations of fact;
    (3) Clarify the positions of the parties with respect to the issues 
to be heard; and
    (4) Discuss any other relevant matters which will assist the parties 
in the resolution of the dispute.

[48 FR 19695, May 2, 1983. Redesignated at 61 FR 41295, Aug. 8, 1996]



Sec.  2472.10  Reports.

    When a report is issued after a hearing conducted pursuant to Sec.  
2472.8 and 2472.9, it normally shall be in writing and shall be 
submitted to the Panel, with a copy to each party, within a period 
normally not to exceed 30 calendar days after the close of the hearing 
and receipt of briefs, if any.

[61 FR 41296, Aug. 8, 1996]



Sec.  2472.11  Final action by the Panel.

    (a) After due consideration of the parties' positions, evidence, and 
arguments, including any report submitted in accordance with Sec.  
2472.10, the Panel shall take final action in favor of the agency's 
determination if:
    (1) The finding on which a determination under 5 U.S.C. 6131(c)(2) 
not to establish a flexible or compressed work schedule is based is 
supported by evidence that the schedule is likely to cause an adverse 
agency impact; or
    (2) The finding on which a determination under 5 U.S.C. 6131(c)(3) 
to terminate a flexible or compressed work schedule is based is 
supported by evidence that the schedule has caused an adverse agency 
impact.
    (b) If the finding on which an agency determination under 5 U.S.C. 
6131(c)(2) or (c)(3) is based is not supported by evidence that the 
schedule is likely to cause or has caused an adverse agency impact, the 
Panel shall take whatever final action is appropriate.

[[Page 506]]

    (c) In preparation for taking such final action, the Panel may hold 
hearings, administer oaths, take the testimony or deposition of any 
person under oath, and issue subpoenas, or it may appoint one or more 
individuals to exercise such authority on its behalf. Such action may be 
taken without regard to procedures previously authorized by the Panel.
    (d) Notice of any final action of the Panel shall be promptly served 
upon the parties.

[48 FR 19695, May 2, 1983. Redesignated and amended at 61 FR 41295, 
41296, Aug. 8, 1996]



PART 2473_SUBPOENAS--Table of Contents



    Authority: 5 U.S.C. 7119, 7134.



Sec.  2473.1  Subpenas.

    (a) Any member of the Panel, the Executive Director, or other person 
designated by the Panel, may issue subpenas requiring the attendance and 
testimony of witnesses and the production of documentary or other 
evidence. However, no subpena shall be issued under this section which 
requires the disclosure of intramanagement guidance, advice, counsel, or 
training within an agency or between an agency and the Office of 
Personnel Management.
    (b) Where the parties are in agreement that the appearance of 
witnesses or the production of documents is necessary, and such 
witnesses agree to appear, no such subpena need be sought.
    (c) A request for a subpena by any person, as defined in 5 U.S.C. 
7103(a)(1), shall be in writing and filed with the Executive Director, 
not less than fifteen (15) days prior to the opening of a hearing, or 
with the appropriate presiding official(s) during the hearing.
    (d) All requests shall name and identify the witnesses or documents 
sought, and state the reasons therefor. The Panel, Executive Director, 
or any other person designated by the Panel, as appropriate, shall grant 
the request upon the determination that the testimony or documents 
appear to be necessary to the matters under consideration and the 
request describes with sufficient particularity the documents sought. 
Service of an approved subpena is the responsibility of the party on 
whose behalf the subpena was issued. The subpena shall show on its face 
the name and address of the party on whose behalf the subpena was 
issued.
    (e) Any person served with a subpena who does not intend to comply 
shall within five (5) days after the date of service of the subpena upon 
such person, petition in writing to revoke the subpena. A copy of any 
petition to revoke a subpena shall be served on the party on whose 
behalf the subpena was issued. Such petition to revoke, if made prior to 
the hearing, and a written statement of service, shall be filed with the 
Executive Director. A petition to revoke a subpena filed during the 
hearing, and a written statement of service shall be filed with the 
appropriate presiding official(s). The Executive Director, or the 
appropriate presiding official(s) will, as a matter of course, cause a 
copy of the petition to revoke to be served on the party on whose behalf 
the subpena was issued, but shall not be deemed to assume responsibility 
for such service. The Panel, Executive Director, or any other person 
designated by the Panel, as appropriate, shall revoke the subpena if the 
evidence the production of which is required does not relate to any 
matter under consideration in the proceedings, or the subpena does not 
describe with sufficient particularity the evidence the production of 
which is required, or if for any other reason sufficient in law the 
subpena is invalid. The Panel, Executive Director, or any other person 
designated by the Panel, as appropriate, shall make a simple statement 
of procedural or other ground for the ruling on the petition to revoke. 
The petition to revoke, any answer thereto, and any ruling thereon shall 
not become part of the official record except upon the request of the 
party aggrieved by the ruling.
    (f) Upon the failure of any person to comply with a subpena issued, 
and upon the request of the party on whose behalf the subpena was 
issued, the Solicitor of the FLRA shall, on behalf of such party, 
institute proceedings in the appropriate district court for the 
enforcement thereof, unless to do so would be inconsistent with law and 
the policies of the Federal Service Labor-Management Relations Statute. 
The

[[Page 507]]

Solicitor of the FLRA shall not be deemed thereby to have assumed 
responsibility for the effective prosecution of the same before the 
court thereafter.
    (g) All papers submitted to the Executive Director under this 
section shall be filed in duplicate, along with a statement of service 
showing that a copy has been served on the other party to the dispute.
    (h)(1) Witnesses (whether appearing voluntarily or under a subpena) 
shall be paid the fee and mileage allowances which are paid subpenaed 
witnesses in the courts of the United States: Provided, that any witness 
who is employed by the Federal Government shall not be entitled to 
receive witness fees in addition to compensation received in conjunction 
with official time granted for such participation, including necessary 
travel time, as occurs during the employee's regular work hours and when 
the employee would otherwise be in a work or paid leave status.
    (2) Witness fees and mileage allowances shall be paid by the party 
at whose instance the witnesses appear except when the witness receives 
compensation in conjunction with official time as described in paragraph 
(h)(1) of this section.

[61 FR 41296, Aug. 8, 1996]



 Sec. Appendix A to 5 CFR Chapter XIV--Current Addresses and Geographic 
                              Jurisdictions

    (a) The Office address, telephone number, and fax number of the 
Authority are: Suite 200, 1400 K Street, NW., Washington, DC 20424-0001; 
telephone: (202) 218-7740; fax: (202) 482-6657.
    (b) The Office address, telephone number, and fax number of the 
General Counsel are: Suite 200, 1400 K Street, NW., Washington, DC 
20424; telephone: (202) 218-7910; fax: (202) 482-6608.
    (c) The Office address, telephone number, and fax number of the 
Chief Administrative Law Judge are: Suite 300, 1400 K Street, NW., 
Washington, DC 20424; telephone: (202) 218-7950; fax: (202) 482-6629.
    (d) The Office addresses, telephone and fax numbers of the Regional 
Offices of the Authority are as follows:
    (1) Washington, DC Regional Office--1400 K Street NW., Suite 200, 
Washington, DC 20424-0001; telephone: (202) 357-6029; fax: (202) 482-
6724.
    (2) Atlanta Regional Office--225 Peachtree Street, Suite 1950, 
Atlanta, Georgia 30303-1701; telephone: (404) 331-5300; fax: (404) 331-
5280.
    (3) Chicago Regional Office--224 S. Michigan Avenue, Suite 445, 
Chicago, Illinois 60604-2505; telephone: (312) 886-3465; fax: (312) 886-
5977.
    (4) Denver Regional Office--1244 Speer Boulevard, Suite 446, Denver, 
Colorado 80204-3581; telephone: (303) 844-5224; fax: (303) 844-2774.
    (5) San Francisco Regional Office--901 Market Street, Suite 470, San 
Francisco, California 94103-1735; telephone: (415) 356-5000; fax: (415) 
356-5017.
    (e) The Office address, telephone number, and fax number of the 
Federal Service Impasses Panel are: Suite 200, 1400 K Street, NW., 
Washington, DC 20424; telephone: (202) 218-7790; fax: (202) 482-6674.
    (f) The geographic jurisdictions of the Regional Directors of the 
Federal Labor Relations Authority are as follows:

------------------------------------------------------------------------
        State or other locality                  Regional office
------------------------------------------------------------------------
Alabama................................  Atlanta.
Alaska.................................  San Francisco.
Arizona................................  Denver.
Arkansas...............................  Atlanta.
California.............................  San Francisco.
Colorado...............................  Denver.
Connecticut............................  Washington, DC.
Delaware...............................  Washington, DC.
District of Columbia...................  Washington, DC.
Florida................................  Atlanta.
Georgia................................  Atlanta.
Hawaii and all land and water areas      San Francisco.
 west of the continents of North and
 South America (except coastal islands)
 to long. 90 degrees East.
Idaho..................................  San Francisco.
Illinois...............................  Chicago.
Indiana................................  Chicago.
Iowa...................................  Chicago.
Kansas.................................  Denver.
Kentucky...............................  Chicago.
Louisiana..............................  Atlanta.

[[Page 508]]

 
Maine..................................  Washington, DC.
Maryland...............................  Washington, DC.
Massachusetts..........................  Washington, DC.
Michigan...............................  Chicago.
Minnesota..............................  Chicago.
Mississippi............................  Atlanta.
Missouri...............................  Chicago.
Montana................................  Denver.
Nebraska...............................  Denver.
Nevada.................................  San Francisco.
New Hampshire..........................  Washington, DC.
New Jersey.............................  Washington, DC.
New Mexico.............................  Denver.
New York...............................  Washington, DC.
North Carolina.........................  Atlanta.
North Dakota...........................  Chicago.
Ohio...................................  Chicago.
Oklahoma...............................  Denver.
Oregon.................................  San Francisco.
Pennsylvania...........................  Washington, DC.
Puerto Rico and coastal islands........  Chicago.
Rhode Island...........................  Washington, DC.
South Carolina.........................  Atlanta.
South Dakota...........................  Chicago.
Tennessee..............................  Chicago.
Texas..................................  Denver.
Utah...................................  Denver.
Vermont................................  Washington, DC.
Virginia...............................  Washington, DC.
Washington.............................  San Francisco.
West Virginia..........................  Washington, DC.
Wisconsin..............................  Chicago.
Wyoming................................  Denver.
Virgin Islands.........................  Atlanta.
Panama/limited FLRA jurisdiction.......  Atlanta.
All land and water areas east of the     Washington, DC.
 continents of North and South America
 to long. 90 degrees East, except the
 Virgin Islands, Panama/limited FLRA
 jurisdiction, Puerto Rico and coastal
 islands.
------------------------------------------------------------------------


(5 U.S.C. 7134)

[55 FR 52831, Dec. 24, 1990, as amended at 58 FR 13695, Mar. 15, 1993; 
59 FR 30504, June 14, 1994; 60 FR 49493, Sept. 26, 1995; 61 FR 1697, 
Jan. 23, 1996; 61 FR 51207, Oct. 1, 1996; 63 FR 70989, Dec. 23, 1998; 63 
FR 72350, Dec. 31, 1998; 68 FR 10954, Mar. 7, 2003; 68 FR 23885, 22886, 
May 6, 2003; 70 FR 41605, July 20, 2005; 79 FR 33849, June 13, 2014; 83 
FR 46349, Sept. 13, 2018; 83 FR 54863, Nov. 1, 2018]



    Sec. Appendix B to 5 CFR Chapter XIV--Memorandum Describing the 
 Authority and Assigned Responsibilities of the General Counsel of the 
                    Federal Labor Relations Authority

    The statutory authority and responsibility of the General Counsel of 
the Federal Labor Relations Authority are stated in section 7104(f), 
subsections (1), (2) and (3), of the Federal Service Labor-Management 
Relations Statute as follows:
    (1) The General Counsel of the Authority shall be appointed by the 
President, by and with the advice and consent of the Senate, for a term 
of 5 years. The General Counsel may be removed at any time by the 
President. The General Counsel shall hold no other office or position in 
the Government of the United States except as provided by law.
    (2) The General Counsel may--
    (A) investigate alleged unfair labor practices under this chapter,
    (B) file and prosecute complaints under this chapter, and
    (C) exercise such other powers of the Authority as the Authority may 
prescribe.
    (3) The General Counsel shall have direct authority over, and 
responsibility for, all employees in the office of the General Counsel, 
including employees of the General Counsel in the regional offices of 
the Authority.

This memorandum is intended to describe the statutory authority and set 
forth the prescribed duties and authority of the General Counsel of the 
Federal Labor Relations Authority, effective January 28, 1980.
    I. Case handling--A. Unfair labor practice cases. The General 
Counsel has full and final authority and responsibility, on behalf of 
the Authority, to accept and investigate charges filed, to enter into 
and approve the informal settlement of charges, to approve withdrawal 
requests, to dismiss charges, to determine

[[Page 509]]

matters concerning the consolidation and severance of cases before the 
complaint issues, to issue complaints and notices of hearing, to appear 
before Administrative Law Judges in hearings on complaints and prosecute 
as provided in the Authority's and the General Counsel's rules and 
regulations, and to initiate and prosecute injunction proceedings as 
provided for in section 7123(d) of the Statute. After issuance of the 
Administrative Law Judge's decision, the General Counsel may file 
exceptions and briefs and appear before the Authority in oral argument, 
subject to the Authority's and the General Counsel's rules and 
regulations.
    B. Compliance actions (injunction proceedings). The General Counsel 
is authorized and responsible, on behalf of the Authority, to seek and 
effect compliance with the Authority's orders and make such compliance 
reports to the Authority as it may from time to time require.

On behalf of the Authority, the General Counsel will, in full accordance 
with the directions of the Authority, initiate and prosecute injunction 
proceedings as provided in section 7123(d) of the Statute: Provided 
however, That the General Counsel will initiate and conduct injunction 
proceedings under section 7123(d) of the Statute only upon approval of 
the Authority.
    C. Representation cases. The statutory authority of the Federal 
Labor Relations Authority to delegate to Regional Directors its 
authority to process and determine representation matters is set forth 
in section 7105 (e)(1) and (f) of the Statute as follows:
    (e)(1) The Authority may delegate to any regional director its 
authority under this chapter--
    (A) to determine whether a group of employees is an appropriate 
unit;
    (B) to conduct investigations and to provide for hearings;
    (C) to determine whether a question of representation exists and to 
direct an election; and
    (D) to supervise or conduct secret ballot elections and certify the 
results thereof.
    (f) If the Authority delegates any authority to any regional 
director . . . to take any action pursuant to subsection (e) of this 
section, the Authority may, upon application by any interested person 
filed within 60 days after the date of the action, review such action, 
but the review shall not, unless specifically ordered by the Authority, 
operate as a stay of action. The Authority may affirm, modify, or 
reverse any action reviewed under this subsection. If the Authority does 
not undertake to grant review of the action under this subsection within 
60 days after the later of--
    (1) the date of the action, or
    (2) the date of the filing of any application under this subsection 
for review of the action;

the action shall become the action of the Authority at the end of such 
60 day period.
    In accordance with section 7105 (e)(1) and (f) of the Statute, 
Regional Directors, who are directed and supervised by the General 
Counsel as provided by section III of this memorandum, are hereby 
delegated the authority to determine whether a group of employees is an 
appropriate unit, to conduct investigations and to provide for hearings, 
to determine whether a question of representation exists and to direct 
an election, and to supervise or conduct secret ballot elections and 
certify the results thereof.
    Regional Directors are authorized and have responsibility to receive 
and process, in accordance with decisions of the Authority and the rules 
and regulations of the Authority and the General Counsel, all petitions 
filed pursuant to sections 7111, 7112(d), 7113, 7115 and 7117(d) of the 
Statute.
    The authority and responsibility of Regional Directors in cases 
filed involving such petitions shall extend to all phases of the 
investigation of such petitions through the conclusion of the hearing to 
be conducted by a Regional Office employee (if a hearing should be 
necessary to resolve disputed issues), including decisional action by 
the Regional Director after such investigation or hearing.
    Regional Directors also are authorized and have responsibility to 
direct an election after a hearing pursuant to sections 7111 and 7112(d) 
of the Statute and to approve consent election agreements in accordance 
with section 7111(g) of the Statute.
    In the event a Regional Director directs an election or approves a 
consent election agreement, the Regional Director is authorized to 
supervise or conduct the election pursuant to section 7111 and 7112(d) 
of the Statute. In such instances, Regional Directors are authorized and 
have responsibility to determine the validity of determinative 
challenges and objections to the conduct of the election and other 
similar matters. This authority and responsibility extends to all phases 
of the investigation such determinative challenges and objections 
through the conclusion of a hearing to be conducted by a Regional Office 
employee (if a hearing should be necessary to resolve disputed issues), 
including decisional action by the Regional Director after such 
investigation or hearing.
    Decisions and Orders of Regional Directors made pursuant to this 
delegation of authority become the action of the Authority:
    (1) If no interested person files an application for review of the 
Regional Director's Decision and Order with the Authority within sixty 
(60) days after the Regional Director's Decision and Order; or

[[Page 510]]

    (2) If the Authority does not undertake to grant review of the 
Regional Director's Decision and Order within sixty (60) days after the 
filing of a timely application for review;
    If no interested person files an application for review of the 
Regional Director's Decision and Order with the Authority within (60) 
days after the Regional Director's Decision and Order, or if the 
Authority does not undertake to grant review of the action of the 
regional Director's Decision and Order within sixty (60) days after the 
filing of a timely application for review, the Regional Director's 
Decision and Order will become final and binding, and the Regional 
Director will certify to the parties the results of any election held or 
issue any clarification of unit, amendment of recognition or 
certification, determination of eligibility for dues allotment, or 
certification on consolidation of units as required.
    The Authority will undertake to grant review of a Decision and Order 
of a Regional Director upon the timely filing of an application for 
review only where compelling reasons exist therefor as set forth in the 
rules and regulations.
    The Authority's granting of review upon the timely filing of an 
application for review of a Regional Director's Decision and Order will 
not operate as a stay of such action ordered by the Regional Director, 
unless specifically ordered by the Authority. If the Authority grants 
review, the Authority may affirm, modify or reverse action reviewed.
    II. Liaison with other governmental agencies. The General Counsel is 
authorized and has responsibility, on behalf of the Authority, to 
maintain appropriate and adequate liaison and arrangements with the 
Office of the Assistant Secretary of Labor for Labor-Management 
Relations with reference to the financial and other reports required to 
be filed with the Assistant Secretary pursuant to section 7120(c) of the 
Statute and the availability to the Authority and the General Counsel of 
the contents thereof. The General Counsel is authorized and has 
responsibility, on behalf of the Authority, to maintain appropriate and 
adequate liaison with the Federal Mediation and Conciliation Service 
with respect to functions which may be performed by the Federal 
Mediation and Conciliation Service.
    III. Personnel. Under 5 U.S.C. 7105(d), the Authority is authorized 
to appoint Regional Directors. In order better to ensure the effective 
exercise of the duties and responsibilities of the General Counsel 
described above, the General Counsel is delegated authority to recommend 
the appointment, transfer, demotion or discharge of any Regional 
Director. However, such actions may be taken only with the approval of 
the Authority. In the event of a vacant Regional Director position, the 
General Counsel may, without the approval of the Authority, detail 
personnel as acting Regional Director for a total period of up to 120 
days commencing on the day the position becomes vacant. If the position 
remains vacant for more than 120 days, a detail must be approved by the 
Authority. Other details of personnel to act as Regional Director during 
periods when there is an incumbent in the position shall be accomplished 
by the General Counsel without the approval of the Authority. The 
General Counsel shall have authority to direct and supervise the 
Regional Directors. Under 5 U.S.C. 7104(f)(3), the General Counsel shall 
have direct authority over, and responsibility for all employees in the 
Office of the General Counsel and all personnel of the General Counsel 
in the field offices of the Authority. This includes full and final 
authority subject to applicable laws and rules, regulations and 
procedures of the Office of Personnel Management and the Authority over 
the selection, retention, transfer, promotion, demotion, discipline, 
discharge and in all other respects of such personnel except the detail 
in the event of a vacancy for a period in excess of 120 days, 
appointment, transfer, demotion or discharge of any Regional Director. 
Further, the establishment, transfer, or elimination of any Regional 
Office or non-Regional Office duty location may be accomplished only 
with the approval of the Authority. The Authority will provide such 
administrative support functions, including personnel management, 
financial management and procurement functions, through the Office of 
Administration of the Authority as are required by the General Counsel 
to carry out the General Counsel's statutory and prescribed functions.
    IV. To the extent that the above-described duties, powers and 
authority rest by statute with the Authority, the foregoing statement 
constitutes a prescription and assignment of such duties, powers and 
authority, whether or not so specified.

[45 FR 3523, Jan. 17, 1980, as amended at 48 FR 28814, June 23, 1983; 61 
FR 16043, Apr. 11, 1996]

                       PARTS 2474	2499 [RESERVED]

[[Page 511]]



                CHAPTER XVI--OFFICE OF GOVERNMENT ETHICS




  --------------------------------------------------------------------

                SUBCHAPTER A--ORGANIZATION AND PROCEDURES
Part                                                                Page
2600            Organization and functions of the Office of 
                    Government Ethics.......................         513
2601            Implementation of Office of Government 
                    Ethics statutory gift acceptance 
                    authority...............................         514
2602

Employee responsibilities and conduct, addendum [Reserved]

2604            Freedom of Information Act rules and 
                    schedule of fees for the production of 
                    public financial disclosure reports.....         517
2606            Privacy Act rules...........................         530
2608            Testimony by OGE employees relating to 
                    official information and production of 
                    official records in legal proceedings...         539
2610            Implementation of the Equal Access to 
                    Justice Act.............................         544
                     SUBCHAPTER B--GOVERNMENT ETHICS
2634            Executive branch financial disclosure, 
                    qualified trusts, and certificates of 
                    divestiture.............................         552
2635            Standards of ethical conduct for employees 
                    of the executive branch.................         607
2636            Limitations on outside earned income, 
                    employment and affiliations for certain 
                    noncareer employees.....................         662
2638            Executive branch ethics program.............         668
2640            Interpretation, exemptions and waiver 
                    guidance concerning 18 U.S.C. 208 (Acts 
                    affecting a personal financial interest)         694
2641            Post-employment conflict of interest 
                    restrictions............................         712
2642-2699

 [Reserved]

[[Page 513]]



                SUBCHAPTER A_ORGANIZATION AND PROCEDURES





PART 2600_ORGANIZATION AND FUNCTIONS OF THE OFFICE OF GOVERNMENT ETHICS--
Table of Contents



Sec.
2600.101 Mission and history.
2600.102 Contact information.
2600.103 Office of Government Ethics organization and functions.

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 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: 68 FR 41682, July 15, 2003, unless otherwise noted.



Sec.  2600.101  Mission and history.

    (a) The U.S. Office of Government Ethics (OGE) was established by 
the Ethics in Government Act of 1978, Public Law 95-521, 92 Stat. 1824 
(1978). OGE exercises leadership in the executive branch of the Federal 
Government to prevent conflicts of interest on the part of executive 
branch employees and resolve those conflicts of interest that do occur. 
In partnership with executive branch departments and agencies, OGE 
fosters high ethical standards for executive branch employees which, in 
turn, strengthens the public's confidence that the Government's business 
is conducted with impartiality and integrity.
    (b) Originally an entity within the Office of Personnel Management, 
OGE became a separate executive branch agency on October 1, 1989, 
pursuant to section 3 of the Office of Government Ethics Reauthorization 
Act of 1988, Public Law 100-598, 102 Stat. 3031 (1988). OGE is the 
supervising ethics office for all executive branch officers and 
employees pursuant to the Ethics Reform Act of 1989, Public Law 101-194, 
103 Stat. 1716 (1989), as amended by Public Law 101-280, 104 Stat. 149 
(1990). Additionally, OGE has various responsibilities under Executive 
Order 12674 of April 12, 1989, ``Principles of Ethical Conduct for 
Government Officers and Employees'' (3 CFR, 1989 Comp., pp. 215-218), as 
modified by Executive Order 12731 of October 17, 1990 (3 CFR, 1990 
Comp., pp. 306-311).

[68 FR 41682, July 15, 2003, as amended at 80 FR 57072, Sept. 22, 2015]



Sec.  2600.102  Contact information.

    (a) Address. OGE is located at 1201 New York Avenue NW., Suite 500, 
Washington, DC 20005-3917. OGE does not have any regional offices. OGE's 
general email address is [email protected].
    (b) Web site. Information about OGE and its role in the executive 
branch ethics program as well as copies of publications that have been 
developed for training, educational and reference purposes are available 
electronically on OGE's Web site (www.oge.gov). OGE has posted on its 
Web site various Executive Orders, statutes, and regulations that 
together form the basis for the executive branch ethics program. The 
site also contains ethics advisory opinions and letters published by 
OGE, as well as other pertinent information.
    (c) Telephone numbers. OGE's main telephone number is 202-482-9300. 
Persons who are deaf or speech impaired may contact OGE at the following 
TDD (Telecommunications Device for the Deaf and Speech Impaired) number: 
202-482-9293. The main OGE FAX number is 202-482-9237.

[68 FR 41682, July 15, 2003, as amended at 80 FR 57072, Sept. 22, 2015]



Sec.  2600.103  Office of Government Ethics organization and functions.

    OGE's Director is appointed by the President and confirmed by the 
Senate for a five-year term. Additional information regarding OGE's 
organization and functions is available on its Web site at www.oge.gov.

[80 FR 57072, Sept. 22, 2015]

[[Page 514]]



PART 2601_IMPLEMENTATION OF OFFICE OF GOVERNMENT ETHICS STATUTORY GIFT 
ACCEPTANCE AUTHORITY--Table of Contents



                      Subpart A_General Provisions

Sec.
2601.101 Authority.
2601.102 Purpose.
2601.103 Policy.
2601.104 Relationship to other authorities.
2601.105 Definitions.

      Subpart B_Guidelines for Solicitation and Acceptance of Gifts

2601.201 Delegation.
2601.202 Procedure.
2601.203 Conflict of interest analysis.
2601.204 Conditions for acceptance.

                    Subpart C_Accounting Requirements

2601.301 Accounting of gifts.

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978).

    Source: 68 FR 60594, Oct. 22, 2003, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2601.101  Authority.

    Section 2 of the Office of Government Ethics Authorization Act of 
1996, amending the Ethics in Government Act of 1978, as codified at 5 
U.S.C. app. 403(b), authorizes the Office of Government Ethics (OGE) to 
accept and utilize gifts for the purpose of aiding or facilitating the 
work of OGE.



Sec.  2601.102  Purpose.

    The purpose of this part is to establish guidelines governing the 
implementation of OGE's gift authority by defining its scope and 
application, by prescribing the policies, standards and procedures that 
govern the solicitation, acceptance and use of gifts, and by setting 
forth accounting requirements related to the use of this authority.



Sec.  2601.103  Policy.

    (a) Scope. OGE may use its statutory authority to solicit, accept 
and utilize gifts to the agency that aid or facilitate the agency's 
work. The authority to solicit, accept and utilize gifts includes the 
authority to receive, administer, spend, invest and dispose of gifts. 
Gifts to the agency from individuals or organizations can be a useful 
adjunct to appropriated funds and may enhance the agency's ability to 
fulfill its mission, as well as further mutually beneficial public/
private partnerships, or other useful arrangements or relationships. 
Such uses of this authority are appropriate provided that solicitation 
or acceptance of a gift does not compromise the integrity of OGE, its 
programs or employees.
    (b) Use of gifts. Gifts to OGE may be used to carry out any activity 
that furthers the mission, programs, responsibilities, functions or 
activities of the agency. Gifts may be used to carry out program 
functions whether or not appropriated funds are available for that 
purpose, provided that such expenditures are not barred by law or 
regulation. Gifts may also be used for official travel by employees to 
events or activities required to carry out the agency's statutory or 
regulatory functions. Gifts to the agency may also be used for the 
travel expenses of spouses accompanying employees on official travel, if 
such travel could be paid for by appropriated funds.
    (c) Sources. Generally, gifts may be solicited or accepted from any 
source, including a prohibited source, provided that the standards of 
this part are met. Gifts generally should be made directly to the agency 
and not through intermediaries. However, where a gift is offered by an 
intermediary, both the intermediary and the ultimate source of the gift 
should be analyzed to determine whether acceptance would be appropriate.
    (d) Endorsement. Acceptance of a gift pursuant to this part will not 
in any way be deemed to be an endorsement of the donor, or the donor's 
products, services, activities, or policies. Letters to a donor 
expressing appreciation of a gift are permitted.
    (e) Type of gift. The agency may solicit or accept any gift that is 
within its statutory authority. However, as a matter of policy, OGE will 
not solicit or accept gifts of currency pursuant to this part. Donors 
who offer currency should be advised that the gift may be made by check 
or money order payable

[[Page 515]]

to the U.S. Office of Government Ethics.

[68 FR 60594, Oct. 22, 2003, as amended at 80 FR 57072, Sept. 22, 2015]



Sec.  2601.104  Relationship to other authorities.

    (a) This part does not apply to gifts to the agency of:
    (1) Travel and travel-related expenses made pursuant to the 
authority set forth in 31 U.S.C. 1353; or
    (2) Volunteer services made pursuant to the authority set forth in 5 
U.S.C. 3111.
    (b) This part does not apply to gifts to an individual agency 
employee, including:
    (1) Gifts of contributions, awards or other expenses for training 
made pursuant to the authority set forth in the Government Employees 
Training Act, 5 U.S.C. 4111;
    (2) Gifts made by a foreign government or organization, or 
representative thereof, pursuant to the authority set forth in 5 U.S.C. 
7342;
    (3) Gifts made by a political organization that may be accepted by 
an agency employee who, in accordance with the terms of the Hatch Act 
Reform Amendments of 1993, at 5 U.S.C. 7323, may take an active part in 
political management or in political campaigns; or
    (4) Gifts made directly or indirectly that an employee may accept in 
a personal capacity pursuant to the authority set forth in 5 CFR part 
2635, subpart B or subpart C.



Sec.  2601.105  Definitions.

    As used in this part:
    Agency means the U.S. Office of Government Ethics (OGE).
    Authorized agency official means the Director of OGE or the 
Director's delegee.
    Director means the Director of OGE.
    Employee means an employee of OGE.
    Gift means any gift, donation, bequest or devise of money, use of 
facilities, personal property, or services and may include travel 
reimbursements or payments for attendance at or participation in 
meetings or events.
    Money means currency, checks, money orders or other forms of 
negotiable instruments.
    Personal property means all property, tangible or intangible, not 
defined as real property, and includes stocks and bonds.
    Prohibited source means any source described in 5 CFR 2635.203(d).
    Services means all forms of voluntary and uncompensated personal 
services.
    Use of facilities means use of space, equipment and all other 
facilities.

[68 FR 60594, Oct. 22, 2003, as amended at 80 FR 57072, Sept. 22, 2015]



      Subpart B_Guidelines for Solicitation and Acceptance of Gifts



Sec.  2601.201  Delegation.

    (a) The authority to solicit, accept, and utilize gifts in 
accordance with this part resides with the Director.
    (b) The Director may delegate this authority.
    (c) Authorities delegated in accordance with paragraph (b) of this 
section may be redelegated only through a written delegation authorizing 
an agency employee to solicit or accept specific types of gifts, or a 
gift for a specific purpose, function, or event.



Sec.  2601.202  Procedure.

    (a) The authorized agency official will have the authority to 
solicit, accept, refuse, return, or negotiate the terms of acceptance of 
a gift.
    (b) An employee, other than an authorized agency official, will 
immediately forward all offers of gifts covered by this part regardless 
of value to an authorized agency official for consideration and will 
provide a description of the gift offered. An employee will also inform 
an authorized agency official of all discussions of the possibility of a 
gift. An employee will not provide a donor with any commitment, 
privilege, concession or other present or future benefit (other than an 
appropriate acknowledgment) in return for a gift.
    (c) Only an authorized agency official may solicit, accept or 
decline a gift after making the determination required under the 
conflict of interest standard in Sec.  2601.203. An authorized

[[Page 516]]

agency official may find that, while acceptance of an offered gift is 
permissible, it is in the interest of the agency to qualify acceptance 
by, for example, limiting the gift in some way. Approval of acceptance 
of a gift in-kind after receipt of the gift may be granted as deemed 
appropriate by the authorized agency official.
    (d) Gifts may be acknowledged in writing in the form of a letter of 
acceptance to the donor. The amount of a monetary gift will be 
specified. In the case of nonmonetary gifts, the letter will not make 
reference to the value of the gift. Valuation of nonmonetary gifts is 
the responsibility of the donor. Letters of acceptance will not include 
any statement regarding the tax implications of a gift, which remain the 
responsibility of the donor. No statement of endorsement should appear 
in a letter of acceptance to the donor.
    (e) A gift may be declined by an authorized official orally or in 
writing. A donor may be advised of the reason why the gift has been 
declined. A gift may be declined solely as a matter of agency 
discretion, even though acceptance would not be precluded under the 
conflict of interest standard in Sec.  2601.203.
    (f) A gift of money or the proceeds of a gift will be deposited in 
an appropriately documented agency fund. A check or money order should 
be made payable to the ``U.S. Office of Government Ethics.''

[68 FR 60594, Oct. 22, 2003, as amended at 80 FR 57073, Sept. 22, 2015]



Sec.  2601.203  Conflict of interest analysis.

    (a) A gift will not be solicited or accepted if the authorized 
agency official determines that such solicitation or acceptance of the 
gift would reflect unfavorably upon the ability of the agency, or any 
employee of the agency, to carry out OGE responsibilities or official 
duties in a fair and objective manner, or would compromise the integrity 
or the appearance of the integrity of its programs or any official 
involved in those programs.
    (b) In making the determination required under paragraph (a) of this 
section, an authorized agency official may be guided by all relevant 
considerations, including, but not limited to the following:
    (1) The identity of the donor;
    (2) The monetary or estimated market value or the cost to the donor;
    (3) The purpose of the gift as described in any written statement or 
oral proposal by the donor;
    (4) The identity of any other expected recipients of the gift on the 
same occasion, if any;
    (5) The timing of the gift;
    (6) The nature and sensitivity of any matter pending at the agency 
affecting the interests of the donor;
    (7) The significance of an individual employee's role in any matter 
affecting the donor, if benefits of the gift will accrue to the 
employee;
    (8) The nature of the gift offered;
    (9) The frequency of other gifts received from the same donor; and
    (10) The agency activity, purpose or need that the gift will aid or 
facilitate.
    (c) An authorized agency official may ask the donor to provide in 
writing any additional information needed to assist in making the 
determination under this section. Such information may include a 
description of the donor's business or organizational affiliation and 
any matters that are pending or are expected to be pending before the 
agency.

[68 FR 60594, Oct. 22, 2003, as amended at 80 FR 57073, Sept. 22, 2015]



Sec.  2601.204  Conditions for acceptance.

    (a) No gift may be accepted that:
    (1) Attaches conditions inconsistent with applicable laws or 
regulations;
    (2) Is conditioned upon or will require the expenditure of 
appropriated funds that are not available to the agency;
    (3) Requires the agency to provide the donor with some privilege, 
concession or other present or future benefit in return for the gift;
    (4) Requires the agency to adhere to particular requirements as to 
deposit, investment, or management of funds donated;
    (5) Requires the agency to undertake or engage in activities that 
are not related to the agency's mission, programs or statutory 
authorities; or
    (6) Would reflect unfavorably upon the ability of the agency, or any 
of its

[[Page 517]]

employees, to carry out its responsibilities or official duties in a 
fair and objective manner, or would compromise or appear to compromise 
the integrity or the appearance of the integrity of its programs or any 
official involved in those programs.
    (b) [Reserved]

    Note to Sec.  2601.204: Nothing in this part will prohibit the 
agency from offering or providing the donor an appropriate 
acknowledgment of its gift in a publication, speech or other medium.

[68 FR 60594, Oct. 22, 2003, as amended at 80 FR 57073, Sept. 22, 2015]



                    Subpart C_Accounting Requirements



Sec.  2601.301  Accounting of gifts.

    (a) OGE's Designated Agency Ethics Official (DAEO) will ensure that 
gifts are properly accounted for by following appropriate internal 
controls and accounting procedures.
    (b) The DAEO will maintain an inventory of donated personal property 
valued at over $500. The inventory will be updated each time an item is 
sold, excessed, destroyed or otherwise disposed of or discarded.
    (c) The DAEO will maintain a log of all gifts valued at over $500 
accepted pursuant to this part. The log will include, to the extent 
known:
    (1) The name and address of the donor;
    (2) A description of the gift; and
    (3) The date the gift is accepted.

[68 FR 60594, Oct. 22, 2003, as amended at 80 FR 57073, Sept. 22, 2015]

  PART 2602_EMPLOYEE RESPONSIBILITIES AND CONDUCT, ADDENDUM [RESERVED]



PART 2604_FREEDOM OF INFORMATION ACT RULES AND SCHEDULE OF FEES 
FOR THE PRODUCTION OF PUBLIC FINANCIAL DISCLOSURE REPORTS--Table of Contents



                      Subpart A_General Provisions

Sec.
2604.101 Purpose.
2604.102 Applicability.
2604.103 Definitions.
2604.104 Preservation of records.
2604.105 Other rights and services.

    Subpart B_FOIA Public Reading Room Facility and Web Site; Index 
                 Identifying Information for the Public

2604.201 Public reading room facility and Web site.
2604.202 Index identifying information for the public.

        Subpart C_Production and Disclosure of Records Under FOIA

2604.301 Requests for records.
2604.302 Response to requests.
2604.303 Form and content of responses.
2604.304 Appeal of denials.
2604.305 Time limits.

                     Subpart D_Exemptions Under FOIA

2604.401 Policy.
2604.402 Business information.

                       Subpart E_Schedule of Fees

2604.501 Fees to be charged--general.
2604.502 Fees to be charged--categories of requesters.
2604.503 Limitations on charging fees.
2604.504 Miscellaneous fee provisions.

                    Subpart F_Annual OGE FOIA Report

2604.601 Electronic posting and submission of annual OGE FOIA report.

  Subpart G_Fees for the Reproduction and Mailing of Public Financial 
                           Disclosure Reports

2604.701 Policy
2604.702 Charges.

    Authority: 5 U.S.C. 552; 5 U.S.C. App. 101-505; E.O. 12600, 52 FR 
23781, 3 CFR, 1987 Comp., p. 235; E.O. 13392, 70 FR 75373, 3 CFR, 2005 
Comp., p. 216.

    Source: 80 FR 57073, Sept. 22, 2015, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2604.101  Purpose.

    This part contains the regulations of the U.S. Office of Government 
Ethics (OGE) implementing the Freedom of Information Act (FOIA), as 
amended. It describes how any person may obtain records from OGE under 
the FOIA. It also implements section 105(b)(1) of the Ethics in 
Government Act of 1978 (Ethics Act), as amended, which authorizes an 
agency to charge reasonable fees to

[[Page 518]]

cover the cost of reproduction and mailing of public financial 
disclosure reports requested by any person.



Sec.  2604.102  Applicability.

    (a) General. The FOIA and this rule apply to all OGE records. 
However, if another law sets forth procedures for the disclosure of 
specific types of records, such as section 105 of the Ethics in 
Government Act of 1978, 5 U.S.C. appendix, OGE will process a request 
for those records in accordance with the procedures that apply to those 
specific records. See 5 CFR 2634.603 and subpart G of this part. If 
there is any record which is not required to be released under those 
provisions, OGE will consider the request under the FOIA and this rule, 
provided that the special Ethics Act access procedures cited must be 
complied with as to any record within the scope thereof.
    (b) The relationship between the FOIA and the Privacy Act of 1974. 
The Freedom of Information Act applies to third-party requests for 
documents concerning the general activities of the government and of OGE 
in particular. The Privacy Act of 1974, 5 U.S.C. 552a, applies to 
records that are about individuals, but only if the records are in a 
system of records as defined in the Privacy Act. When an individual 
requests access to his or her own records that are contained in an OGE 
system of records, the individual is making a Privacy Act request, not a 
FOIA request. Although OGE determines whether a request is a FOIA or 
Privacy Act request, OGE processes requests in accordance with both laws 
and will not deny access by a first party to a record under the FOIA or 
the Privacy Act if the record is available to that individual under both 
statutes. This provides the greatest degree of lawful access while 
safeguarding individuals' personal privacy.
    (c) Records available through routine distribution procedures. When 
the record requested includes material published and offered for sale 
(e.g., by the Government Publishing Office) or which is available to the 
public through an established distribution system (such as that of the 
National Technical Information Service of the Department of Commerce), 
OGE will explain how the record may be obtained through those channels. 
If the requester, after having been advised of such alternative access, 
asks for regular FOIA processing instead, OGE will provide the record in 
accordance with its usual FOIA procedures under this part.



Sec.  2604.103  Definitions.

    As used in this part:
    Agency has the meaning given in 5 U.S.C. 551(1) and 5 U.S.C. 552(f).
    Business information means trade secrets or other commercial or 
financial information, provided to OGE by a submitter, which arguably is 
protected from disclosure under Exemption 4 of the Freedom of 
Information Act.
    Business submitter means any person who provides business 
information, directly or indirectly, to OGE and who has a proprietary 
interest in the information.
    Chief FOIA Officer means the OGE official designated in 5 U.S.C. 
552(j)(1) to provide oversight of all of OGE's FOIA program operations.
    Commercial use means, when referring to a request, that the request 
is from, or on behalf of one who seeks information for a use or purpose 
that furthers the commercial, trade, or profit interests of the 
requester or of a person on whose behalf the request is made. Whether a 
request is for a commercial use depends on the purpose of the request 
and the use to which the records will be put. When a request is from a 
representative of the news media, a purpose or use supporting the 
requester's news dissemination function is not a commercial use.
    Direct costs means those expenditures actually incurred in searching 
for and duplicating (and, in the case of commercial use requesters, 
reviewing) records to respond to a FOIA request. Direct costs include 
the salary of the employee performing the work and the cost of operating 
duplicating machinery. Not included in direct costs are overhead 
expenses such as costs of space and heating or lighting of the facility 
in which the records are stored.
    Duplication means the process of making a copy of a record. Such 
copies include photocopies, flash drives, and optical discs.

[[Page 519]]

    Educational institution means a preschool, elementary or secondary 
school, institution of undergraduate or graduate higher education, or 
institute of professional or vocational education, which operates a 
program of scholarly research.
    Fee waiver means waiving or reducing processing fees if a requester 
can demonstrate that certain statutory standards are satisfied, 
including that the information is in the public interest and is not 
requested for a commercial interest.
    FOIA Officer means the OGE employee designated to handle various 
initial FOIA matters, including requests and related matters such as 
fees.
    FOIA Public Liaison means the OGE official designated in 5 U.S.C. 
552(a)(6)(B)(ii) and 552(l) to review upon request any concerns of FOIA 
requesters about the service received from OGE's FOIA Requester Service 
Center and to address any other FOIA-related inquiries.
    FOIA Requester Service Center means the OGE unit designated under 
E.O. 13392 and referenced in 5 U.S.C. 552(l) to answer any questions 
requesters have about the status of OGE's processing of their FOIA 
requests.
    Freedom of Information Act or FOIA means 5 U.S.C. 552.
    Noncommercial scientific institution means an institution that is 
not operated solely for purposes of furthering its own or someone else's 
business, trade, or profit interests, and that is operated for purposes 
of conducting scientific research the results of which are not intended 
to promote any particular product or industry.
    Office or OGE means the United States Office of Government Ethics.
    Person has the meaning given in 5 U.S.C. 551(2), including ``an 
individual, partnership, corporation, association, or public or private 
organization other than an agency.''
    Records means any handwritten, typed, or printed documents (such as 
memoranda, books, brochures, studies, writings, drafts, letters, 
transcripts, and minutes) and documentary material in other forms (such 
as electronic documents, electronic mail, magnetic tapes, cards or 
discs, paper tapes, audio or video recordings, maps, photographs, 
slides, microfilm and motion pictures) that are either created or 
obtained by OGE and are under its control. It does not include objects 
or articles such as exhibits, models, equipment, and duplication 
machines or audiovisual processing materials.
    Representative of the news media means a person or entity that 
gathers information of potential interest to a segment of the public, 
uses editorial skills to turn the raw materials into a distinct work, 
and distributes that work to an audience. In this clause, the term 
``news'' means information that is about current events or that would be 
of current interest to the public. Examples of news media entities 
include television or radio stations broadcasting to the public at large 
and publishers of periodicals (but only if such entities qualify as 
disseminators of ``news'') who distribute their products to the general 
public or who make their products available for purchase or subscription 
by the general public, and entities that may disseminate news through 
other media, such as electronic dissemination of text. Freelance 
journalists will be considered as representatives of a news media entity 
if they can show a solid basis for expecting publication through such an 
entity. A publication contract is such a basis, and the requester's past 
publication record may show such a basis.
    Request means any request for records made pursuant to 5 U.S.C. 
552(a)(3).
    Requester means any person who makes a request for records to OGE.
    Requester category means one of three classifications that OGE 
assigns to requesters to determine whether OGE will charge fees for 
search, review and duplication. These categories are: Commercial 
requesters; noncommercial scientific or educational institutions or 
representatives of the news media; and all other requesters.
    Review means the process of initially, or upon appeal (see Sec.  
2604.501(b)(3)), examining documents located in a response to a request 
to determine whether any portion of any document is permitted to be 
withheld. It also includes processing documents for disclosure, such as 
redacting portions which

[[Page 520]]

may be withheld. Review does not include time spent resolving general 
legal and policy issues regarding the application of exemptions.
    Search means the time spent looking for material manually or by 
automated means that is responsive to a request, including page-by-page 
or line-by-line identification of material within documents.
    Working days means calendar days, excepting Saturdays, Sundays, and 
legal public holidays.

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



Sec.  2604.104  Preservation of records.

    OGE will preserve all correspondence pertaining to the requests that 
it receives under this part, as well as copies of all responsive 
records, until disposition or destruction is authorized by title 44 of 
the United States Code or the National Archives and Records 
Administration's General Records Schedule. Records will not be disposed 
of while they are the subject of a pending request, appeal, or lawsuit.



Sec.  2604.105  Other rights and services.

    Nothing in this part will be construed to entitle any person, as of 
right, to any service or to the disclosure of any record to which such 
person is not entitled under the FOIA.



    Subpart B_FOIA Public Reading Room Facility and Web Site; Index 
                 Identifying Information for the Public



Sec.  2604.201  Public reading room facility and Web site.

    (a)(1) Location of public reading room facility. OGE maintains a 
public reading room facility at its offices located at 1201 New York 
Avenue NW., Suite 500, Washington, DC 20005-3917. Persons desiring to 
utilize the reading room facility should contact OGE, in writing or by 
telephone: 202-482-9300, TDD: 202-482-9293, or FAX: 202-482-9237, to 
arrange a time to inspect the materials available there.
    (2) Web site. The records listed in paragraph (b) of this section 
that were created on or after November 1, 1996, or which OGE is 
otherwise able to make electronically available, along with the OGE FOIA 
and Public Records Guide and OGE's annual FOIA reports, are also 
available via OGE's Web site (www.oge.gov). OGE will proactively 
identify additional records of interest to the public and will post such 
records on its Web site when practicable.
    (b) Records available. The OGE Web site contains OGE records which 
are required by 5 U.S.C. 552(a)(2) to be made available for public 
inspection in an electronic format, including:
    (1) Any final opinions, as well as orders, made in the adjudication 
of cases;
    (2) Any statements of policy and interpretation which have been 
adopted by OGE and are not published in the Federal Register;
    (3) Any administrative staff manuals and instructions to staff that 
affect a member of the public, and which are not exempt from disclosure 
under section (b) of the FOIA;
    (4) Copies of records created by OGE that have been released to any 
person under subpart C of this part and that, because of the nature of 
their subject matter, OGE determines have become or are likely to become 
the subject of subsequent requests for substantially the same records or 
that have been requested three or more times; and
    (5) A general index of the records referred to under Sec.  
2604.201(b)(4).
    (c) OGE may delete from the copies of materials made available under 
this section any identifying details necessary to prevent a clearly 
unwarranted invasion of personal privacy. Any such deletions will be 
explained in writing and the extent of such deletions will be indicated 
on the portion of the records that are made available or published, 
unless the indication would harm an interest protected by the FOIA 
exemption pursuant to which the deletions are made. If technically 
feasible, the extent of any such deletions will be indicated at the 
place in the records where they are made.

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



Sec.  2604.202  Index identifying information for the public.

    (a) OGE will maintain and make available for public inspection in an 
electronic format a current index of

[[Page 521]]

the materials available on its Web site that are required to be indexed 
under 5 U.S.C. 552(a)(2).
    (b) The Director of the Office of Government Ethics has determined 
that it is unnecessary and impracticable to publish quarterly or more 
frequently and distribute (by sale or otherwise) copies of each index 
and supplements thereto, as provided in 5 U.S.C. 552(a)(2). The Office 
will provide copies of such indexes upon request, at a cost not to 
exceed the direct cost of duplication and mailing, if sending records by 
other than ordinary mail.

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



        Subpart C_Production and Disclosure of Records Under FOIA



Sec.  2604.301  Requests for records.

    (a) Addressing requests. Requests for copies of records may be made 
by mail or email. Requests sent by mail should be addressed to the FOIA 
Officer, U.S. Office of Government Ethics, 1201 New York Avenue NW., 
Suite 500, Washington, DC 20005-3917. The envelope containing the 
request and the letter itself should both clearly indicate that the 
subject is a Freedom of Information Act request. Email requests should 
be sent to [email protected] and should indicate in the subject line that 
the message contains a Freedom of Information Act request.
    (b) Description of records. Each request must reasonably describe 
the desired records in sufficient detail to enable OGE personnel to 
locate the records with a reasonable amount of effort. A request for a 
specific category of records will be regarded as fulfilling this 
requirement if it enables responsive records to be identified by a 
technique or process that is not unreasonably burdensome or disruptive 
of OGE operations.
    (1) Wherever possible, a request should include specific information 
about each record sought, such as the date, title or name, author, 
recipient, and subject matter of the record.
    (2) If the FOIA Officer determines that a request does not 
reasonably describe the records sought, the FOIA Officer will either 
advise the requester what additional information is needed to locate the 
record, or otherwise state why the request is insufficient. The FOIA 
Officer will also extend to the requester an opportunity to confer with 
OGE personnel with the objective of reformulating the request in a 
manner which will meet the requirements of this section.
    (c) Agreement to pay fees. The filing of a request under this 
subpart will be deemed to constitute an agreement by the requester to 
pay all applicable fees charged under subpart E of this part, up to 
$25.00, unless a waiver of fees is sought. The request may also specify 
a limit on the amount the requester is willing to spend, or may indicate 
a willingness to pay an amount greater than $25.00, if applicable. In 
cases where a requester has been notified that actual or estimated fees 
may amount to more than $25.00, the request will be deemed not to have 
been received until the requester has agreed to pay the anticipated 
total fee. If, in the course of negotiating fees, the requester does not 
respond to correspondence from OGE, OGE will administratively close the 
FOIA request after 30 calendar days have passed from the date of its 
last correspondence to the requester.
    (d) Requests for records relating to corrective actions. No record 
developed pursuant to the authority of 5 U.S.C. app. 402(f)(2) 
concerning the investigation of an employee for a possible violation of 
any provision relating to a conflict of interest will be made available 
pursuant to this part unless the request for such information identifies 
the employee to whom the records relate and the subject matter of any 
alleged violation to which the records relate. Nothing in this 
subsection will affect the application of subpart D of this part to any 
record so identified.
    (e) Seeking expedited processing. (1) A requester may seek expedited 
processing of a FOIA request if a compelling need for the requested 
records can be shown.
    (2) ``Compelling need'' means:
    (i) Circumstances in which failure to obtain copies of the requested 
records on an expedited basis could reasonably be expected to pose an 
imminent threat

[[Page 522]]

to the life or physical safety of an individual; or
    (ii) An urgency to inform the public about an actual or alleged 
Federal Government activity, if the request is made by a person 
primarily engaged in disseminating information.
    (3) A requester seeking expedited processing should so indicate in 
the initial request, and should state all the facts supporting the need 
to obtain the requested records quickly. The requester must also certify 
in writing that these facts are true and correct to the best of the 
requester's knowledge and belief.



Sec.  2604.302  Response to requests.

    (a) Acknowledgement of requests. If the FOIA Officer determines that 
a request will take longer than 10 working days to process, OGE will 
send a written acknowledgment that includes the request's individualized 
tracking number.
    (b) Response to initial request. The FOIA Officer is authorized to 
grant or deny any request for a record and to determine appropriate 
fees.
    (c) Referral to, or consultation with, another agency. When a 
requester seeks access to records that originated in another Government 
agency subject to the FOIA, OGE will normally refer the request to the 
other agency for response; alternatively, OGE may consult with the other 
agency in the course of deciding itself whether to grant or deny a 
request for access to such records. If OGE refers the request to another 
agency, it will notify the requester of the referral and provide a point 
of contact within the receiving agency. If release of certain records 
may adversely affect United States relations with foreign governments, 
OGE will usually consult with the Department of State. A request for any 
records classified by some other agency will be referred to that agency 
for response.
    (d) Honoring form or format requests. In making any record available 
to a requester, OGE will provide the record in the form or format 
requested, if the record already exists or is readily reproducible by 
OGE in that form or format. If a form or format request cannot be 
honored, OGE will so inform the requester and provide a copy of a 
nonexempt record in its existing form or format or another convenient 
form or format which is readily reproducible. OGE will not, however, 
generally develop a completely new record (as opposed to providing a 
copy of an existing record in a readily reproducible new form or format, 
as requested) of information in order to satisfy a request.
    (e) Record cannot be located. If a requested record cannot be 
located from the information supplied, the FOIA Officer will so notify 
the requester in writing.



Sec.  2604.303  Form and content of responses.

    (a) Form of notice granting a request. After the FOIA Officer has 
made a determination to grant a request in whole or in part, the 
requester will be notified in writing. The notice will describe the 
manner in which the record will be disclosed, whether by providing a 
copy of the record with the response or at a later date, or by making a 
copy of the record available to the requester for inspection at a 
reasonable time and place. The procedure for such an inspection may not 
unreasonably disrupt OGE operations. The response letter will inform the 
requester of the right of the requester to seek assistance from the FOIA 
Public Liaison. The response letter will also inform the requester in 
the response of any fees to be charged in accordance with the provisions 
of subpart E of this part.
    (b) Form of notice denying a request. When the FOIA Officer denies a 
request in whole or in part, the FOIA Officer will so notify the 
requester in writing. The response will be signed by the FOIA Officer 
and will include:
    (1) The name and title or position of the person making the denial;
    (2) A brief statement of the reason or reasons for the denial, 
including the FOIA exemption or exemptions which the FOIA Officer has 
relied upon in denying the request;
    (3) When only a portion of a document is being withheld, the amount 
of information deleted and the FOIA exemption(s) justifying the deletion 
will generally be indicated on the copy of the released portion of the 
document. If technically feasible, such indications

[[Page 523]]

will appear at the place in the copy of the document where any deletion 
is made. If a document is withheld in its entirety, an estimate of the 
volume of the withheld material will generally be given. However, 
neither an indication of the amount of information deleted nor an 
estimation of the volume of material withheld will be included in a 
response if doing so would harm an interest protected by any of the FOIA 
exemptions pursuant to which the deletion or withholding is made; and
    (4) A statement that the denial may be appealed under Sec.  
2604.304, and a description of the requirements of that section; and
    (5) A statement of the right of the requester to seek dispute 
resolution services from the FOIA Public Liaison or the Office of 
Government Information Services (OGIS).

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



Sec.  2604.304  Appeal of denials.

    (a) Right of appeal. If a request has been denied in whole or in 
part, the requester may appeal the denial by mail or email to the 
Program Counsel of the U.S. Office of Government Ethics. Requests sent 
by mail should be addressed to 1201 New York Avenue NW., Suite 500, 
Washington, DC 20005-3917. The envelope containing the request and the 
letter itself should both clearly indicate that the subject is a Freedom 
of Information Act appeal. Email requests should be sent to 
[email protected] and should indicate in the subject line that the message 
contains a Freedom of Information Act appeal.
    (b) Letter of appeal. The appeal must be in writing and must be sent 
within 90 calendar days of receipt of the denial letter. An appeal 
should include a copy of the initial request, a copy of the letter 
denying the request in whole or in part, and a statement of the 
circumstances, reasons or arguments advanced in support of disclosure of 
the record.
    (c) Action on appeal. The disposition of an appeal will be in 
writing and will constitute the final action of OGE on a request. A 
decision affirming in whole or in part the denial of a request will 
include a brief statement of the reason or reasons for affirmance, 
including each FOIA exemption relied on. If the denial of a request is 
reversed in whole or in part on appeal, the request will be processed 
promptly in accordance with the decision on appeal.
    (d) Judicial review. If the denial of the request for records is 
upheld in whole or in part, OGE will notify the person making the 
request of the right to seek judicial review under 5 U.S.C. 552(a)(4).
    (e) Dispute Resolution Services. If the denial of the request for 
records is upheld in whole or in part, OGE will notify the requester 
about the dispute resolution services offered by the Office of 
Government Information Services (OGIS) and provide contact information 
for that office.

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



Sec.  2604.305  Time limits.

    (a)(1) Initial request. Following receipt of a request for records, 
the FOIA Officer will determine whether to comply with the request and 
will notify the requester in writing of the determination within 20 
working days.
    (2) Tolling. OGE may toll the 20-working day period once while 
awaiting a response to information reasonably requested from the 
requester. OGE may also toll the 20-working day period while awaiting a 
response to a request for clarification regarding fees. There is no 
limit on the number of times OGE may toll the statutory time period to 
request clarification regarding fees. In either case, the tolling period 
ends upon receipt of the requester's response to the request for 
information or clarification. If OGE does not receive a response to a 
request for clarification regarding fees within 30 calendar days, it 
will consider the request ``closed.''
    (3) Request for expedited processing. When a request for expedited 
processing under Sec.  2604.301(e) is received, the FOIA Officer will 
respond within 10 calendar days from the date of receipt of the request, 
stating whether or not the request for expedited processing has been 
granted. If the request for expedited processing is denied, any appeal 
of that decision will be acted upon expeditiously.
    (b) Appeal. A written determination on an appeal submitted in 
accordance with Sec.  2604.304 will be issued within 20

[[Page 524]]

working days after receipt of the appeal.
    (c) Extension of time limits. When additional time is required for 
one of the reasons stated in paragraph (d) of this section, OGE will, 
within the statutory 20-working day period, issue written notice to the 
requester setting forth the reasons for the extension and the date on 
which a determination is expected to be made. If more than 10 additional 
working days are needed, the requester will be notified and provided an 
opportunity to limit the scope of the request or to arrange for an 
alternative time frame for processing the request or a modified request. 
To aid the requester, OGE will make available its FOIA Public Liaison to 
assist in the resolution of any disputes. Additionally, OGE will notify 
the requester of the right of the requester to seek dispute resolution 
services from OGIS.
    (d) For the purposes of paragraph (c) of this section, unusual 
circumstances means that there is a need to:
    (1) Search for and collect records from archives;
    (2) Search for, collect, and appropriately examine a voluminous 
amount of separate and distinct records which are demanded in a single 
request; or
    (3) Consult with another agency having a substantial interest in the 
determination of the request, or consult with various OGE components 
that have substantial subject matter interest in the records requested.

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



                     Subpart D_Exemptions Under FOIA



Sec.  2604.401  Policy.

    (a) Foreseeable harm standard. A requested record will not be 
withheld from inspection or copying unless it comes within one of the 
classes of records exempted by 5 U.S.C. 552 and OGE reasonably foresees 
that disclosure would harm an interest protected by an exemption 
described in 5 U.S.C. 552(b) or is prohibited by law. Nothing in this 
paragraph requires disclosure of information that is otherwise 
prohibited from disclosure by law, or otherwise exempted from disclosure 
under 5 U.S.C. 552(b)(3).
    (b) Pledge of confidentiality. Information obtained from any 
individual or organization, furnished in reliance on a provision for 
confidentiality authorized by applicable statute, Executive Order or 
regulation, will not be disclosed to the extent it can be withheld under 
one of the exemptions. However, this paragraph (b) does not itself 
authorize the giving of any pledge of confidentiality by any officer or 
employee of OGE.
    (c) Exception for law enforcement information. OGE may treat records 
compiled for law enforcement purposes as not subject to the requirements 
of the Freedom of Information Act when:
    (1) The investigation or proceeding involves a possible violation of 
criminal law;
    (2) There is reason to believe that the subject of the investigation 
or proceeding is unaware of its pendency; and
    (3) The disclosure of the existence of the records could reasonably 
be expected to interfere with the enforcement proceedings.
    (d) Partial application of exemptions. Any reasonably segregable 
portion of a record will be provided to any person requesting the record 
after deletion of the portions which are exempt under this subpart.

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



Sec.  2604.402  Business information.

    (a) In general. Business information provided to OGE by a submitter 
will not be disclosed pursuant to a Freedom of Information Act request 
except in accordance with this section.
    (b) Designation of business information. Submitters of business 
information should use good-faith efforts to designate, by appropriate 
markings, either at the time of submission or at a reasonable time 
thereafter, those portions of their submissions which they deem to be 
protected under Exemption 4 of the FOIA (5 U.S.C. 552(b)(4)). Any such 
designation will expire 10 years after the records were submitted to the 
Government, unless the submitter requests, and provides reasonable 
justification for, a designation period of longer duration.

[[Page 525]]

    (c) Predisclosure notification. The FOIA Officer will provide a 
submitter with prompt written notice of a FOIA request regarding its 
business information if:
    (1) The information has been designated by the submitter as 
information deemed protected from disclosure under Exemption 4 of the 
FOIA; or
    (2) The FOIA Officer has reason to believe that the information may 
be protected from disclosure under Exemption 4 of the FOIA. Such written 
notice will either describe the exact nature of the business information 
requested or provide copies of the records containing the business 
information. The requester also will be notified that notice and an 
opportunity to object are being provided to a submitter.
    (d) Opportunity to object to disclosure. OGE will give a submitter a 
reasonable time, up to 10 working days, from receipt of the 
predisclosure notification to provide a written statement of any 
objection to disclosure. Such statement will specify all the grounds for 
withholding any of the information under any exemption of the FOIA and, 
in the case of Exemption 4, will demonstrate why the information is 
deemed to be a trade secret or commercial or financial information that 
is privileged or confidential. Information provided by a submitter 
pursuant to this paragraph (d) may itself be subject to disclosure under 
the FOIA.
    (e) Notice of intent to disclose. The FOIA Officer will consider all 
objections raised by a submitter and specific grounds for nondisclosure 
prior to determining whether to disclose business information. Whenever 
the FOIA Officer decides to disclose business information over the 
objection of a submitter, the FOIA Officer will send the submitter a 
written notice at least 10 working days before the date of disclosure 
containing:
    (1) A statement of the reasons why the submitter's objections were 
not sustained;
    (2) A copy of the records which will be disclosed or a written 
description of the records; and
    (3) A specified disclosure date. The requester will also be notified 
of the FOIA Officer's determination to disclose records over a 
submitter's objections.
    (f) Notice of FOIA lawsuit. Whenever a requester brings suit seeking 
to compel disclosure of business information, the FOIA Officer will 
promptly notify the submitter.
    (g) Exceptions to predisclosure notification. The notice 
requirements in paragraph (c) of this section do not apply if:
    (1) The FOIA Officer determines that the information should not be 
disclosed;
    (2) The information has been published previously or has been 
officially made available to the public;
    (3) Disclosure of the information is required by law (other than 5 
U.S.C. 552); or
    (4) The designation made by the submitter in accordance with 
paragraph (b) of this section appears obviously frivolous; except that, 
in such a case, the FOIA Officer will provide the submitter with written 
notice of any final decision to disclose business information within a 
reasonable number of days prior to a specified disclosure date.



                       Subpart E_Schedule of Fees



Sec.  2604.501  Fees to be charged--general.

    (a) Policy. Fees will be assessed according to the schedule 
contained in paragraph (b) of this section and the category of 
requesters described in Sec.  2604.502 for services rendered in 
responding to and processing requests for records under subpart C of 
this part. All fees will be charged to the requester, except where the 
charging of fees is limited under Sec.  2604.503(a) and (b) or where a 
waiver or reduction of fees is granted under Sec.  2604.503(c). 
Requesters will pay fees by check or money order made payable to the 
Treasury of the United States.
    (b) Types of charges. The types of charges that may be assessed in 
connection with the production of records in response to a FOIA request 
are as follows:
    (1) Searches--(i) Manual searches for records. Whenever feasible, 
OGE will charge at the salary rate (i.e., basic pay plus 16%) of the 
employee making the search. However, where a homogeneous

[[Page 526]]

class of personnel is used exclusively in a search (e.g., all clerical 
time or all professional time) OGE will charge $16.00 per hour for 
clerical time and $28.00 per hour for professional time. Charges for 
search time will be billed by 15minute segments.
    (ii) Computer searches for records. Requesters will be charged the 
actual direct cost of conducting a search using existing programming. 
These direct costs will include the cost of operating a central 
processing unit for that portion of operating time that is directly 
attributable to searching for records responsive to a request, as well 
as the cost of operator/programmer salary apportionable to the search. 
OGE will not alter or develop programming to conduct a search.
    (iii) Unproductive searches. OGE will charge search fees even if no 
records are found which are responsive to the request, or if the records 
found are exempt from disclosure.
    (2) Duplication. The standard copying charge for documents in paper 
copy is $0.15 per page. When responsive information is provided in a 
format other than paper copy, such as in the form of computer tapes, 
flash drives, and discs, the requester may be charged the direct costs 
of the medium used to produce the information, as well as any related 
reproduction costs.
    (3) Review. Costs associated with the review of documents, as 
defined in Sec.  2604.103, will be charged at the salary rate (i.e., 
basic pay plus 16%) of the employee conducting the review. Except as 
noted below, charges may be assessed only for review at the initial 
level, i.e., the review undertaken the first time the documents are 
analyzed to determine the applicability of specific exemptions to a 
particular record or portion of the records. A requester will not be 
charged for review at the administrative appeal level concerning the 
applicability of an exemption already applied at the initial level. 
However, when a record has been withheld pursuant to an exemption which 
is subsequently determined not to apply and the record is reviewed again 
at the appeal level to determine the potential applicability of other 
exemptions, the costs of such additional review may be assessed.
    (4) Other services and materials. Where OGE elects, as a matter of 
administrative discretion, to comply with a request for a special 
service or materials, such as certifying that records are true copies or 
sending records by special methods, the actual direct costs of providing 
the service or materials will be charged.



Sec.  2604.502  Fees to be charged--categories of requesters.

    (a) Fees for various requester categories. The paragraphs below 
state, for each category of requester, the type of fees generally 
charged by OGE. However, for each of these categories, the fees may be 
limited, waived or reduced in accordance with the provisions set forth 
in Sec.  2604.503. In determining whether a requester belongs in any of 
the following categories, OGE will determine the use to which the 
requester will put the documents requested. If OGE has reasonable cause 
to doubt the use to which the requester will put the records sought, or 
where the use is not clear from the request itself, OGE will seek 
clarification before assigning the request to a specific category.
    (b) Commercial use requester. OGE will charge the full costs of 
search, review, and duplication. Commercial use requesters are not 
entitled to two hours of free search time or 100 free pages of 
reproduction as described in Sec.  2604.503(a); however, the minimum 
fees provision of Sec.  2604.503(b) does apply to such requesters.
    (c) Educational and noncommercial scientific institutions and news 
media. If the request is from an educational institution or a 
noncommercial scientific institution, operated for scholarly or 
scientific research, or a representative of the news media, and the 
request is not for a commercial use, OGE will charge only for 
duplication of documents, excluding charges for the first 100 pages.
    (d) All other requesters. If the request is not one described in 
paragraph (b) or (c) of this section, OGE will charge the full and 
direct costs of searching for and reproducing records that are 
responsive to the request, excluding the first 100 pages of duplication 
and the first two hours of search time.

[[Page 527]]



Sec.  2604.503  Limitations on charging fees.

    (a) In general. Except for requesters seeking records for a 
commercial use as described in Sec.  2604.502(b), OGE will provide, 
without charge, the first 100 pages of duplication and the first two 
hours of search time, or their cost equivalent.
    (b) Minimum fees. OGE will not assess fees for individual requests 
if the total charge would be $10.00 or less.
    (c) Waiver or reduction of fees. Records responsive to a request 
under 5 U.S.C. 552 will be furnished without charge or at a reduced 
charge if a requester can demonstrate that certain statutory standards 
are satisfied, including that the information is in the public interest 
because it is likely to contribute significantly to public understanding 
of the operations or activities of the Government and is not primarily 
in the commercial interest of the requester. Requests for a waiver or 
reduction of fees will be considered on a case-by-case basis.
    (1) In determining whether disclosure is in the public interest 
because it is likely to contribute significantly to public understanding 
of the operations or activities of the Government, OGE will consider the 
following factors:
    (i) The subject of the request: Whether the subject of the requested 
records concerns the operations or activities of the Government. The 
subject matter of the requested records, in the context of the request, 
must specifically and directly concern identifiable operations or 
activities of the Federal Government. Furthermore, the records must be 
sought for their informative value with respect to those Government 
operations or activities;
    (ii) The informative value of the information to be disclosed: 
Whether the information is likely to contribute to an understanding of 
Government operations or activities. The disclosable portions of the 
requested records must be meaningfully informative on specific 
Government operations or activities in order to hold potential for 
contributing to increased public understanding of those operations and 
activities. The disclosure of information which is already in the public 
domain, in either a duplicative or substantially identical form, would 
not be likely to contribute to such understanding, as nothing new would 
be added to the public record;
    (iii) The contribution to an understanding of the subject by the 
public likely to result from disclosure: Whether disclosure of the 
requested information will contribute to public understanding. The 
disclosure must contribute to the understanding of the public at large, 
as opposed to the individual understanding of the requester or a narrow 
segment of interested persons. A requester's identity and 
qualifications--e.g., expertise in the subject area and ability and 
intention to convey information to the general public--will be 
considered; and
    (iv) The significance of the contribution to public understanding: 
Whether the disclosure is likely to contribute significantly to public 
understanding of Government operations or activities. The public's 
understanding of the subject matter in question, as compared to the 
level of public understanding existing prior to the disclosure, must be 
likely to be significantly enhanced by the disclosure.
    (2) In determining whether disclosure of the requested information 
is not primarily in the commercial interest of the requester, OGE will 
consider the following factors:
    (i) The existence and magnitude of a commercial interest: Whether 
the requester has a commercial interest that would be furthered by the 
requested disclosure. OGE will consider all commercial interests of the 
requester, or any person on whose behalf the requester may be acting, 
which would be furthered by the requested disclosure. In assessing the 
magnitude of identified commercial interests, consideration will be 
given to the effect that the information disclosed would have on those 
commercial interests; and
    (ii) The primary interest in disclosure: Whether the magnitude of 
the identified commercial interest of the requester is sufficiently 
large, in comparison with the public interest in disclosure, that 
disclosure is primarily in the commercial interest of the requester. A 
fee waiver or reduction is warranted only where the public interest can 
fairly be regarded as greater in magnitude than the requester's 
commercial interest in disclosure. OGE will ordinarily presume

[[Page 528]]

that, where a news media requester has satisfied the public interest 
standard, the public interest will be served primarily by disclosure to 
that requester. Disclosure to data brokers and others who compile and 
market Government information for direct economic return will not be 
presumed to primarily serve the public interest.
    (3) Where only a portion of the requested record satisfies the 
requirements for a waiver or reduction of fees under this paragraph (c), 
a waiver or reduction will be granted only as to that portion.
    (4) A request for a waiver or reduction of fees must accompany the 
request for disclosure of records, and should include:
    (i) A clear statement of the requester's interest in the documents;
    (ii) The proposed use of the documents and whether the requester 
will derive income or other benefit from such use;
    (iii) A statement of how the public will benefit from release of the 
requested documents; and
    (iv) If specialized use of the documents is contemplated, a 
statement of the requester's qualifications that are relevant to the 
specialized use.
    (5) A requester may appeal the denial of a request for a waiver or 
reduction of fees in accordance with the provisions of Sec.  2604.304.
    (d) If OGE does not comply with one of the time limits under Sec.  
2604.305, it will not assess search fees (or in the case of a requester 
described under Sec.  2604.502(c), duplication fees), except as provided 
in paragraphs (d)(1) through (d)(3) of this section.
    (1) If OGE has determined that unusual circumstances apply, as 
defined in 5 U.S.C. 552(a)(6)(B), and OGE provided timely written notice 
to the requester in accordance with 5 U.S.C. 552(a)(6)(B), a failure to 
comply with the time limit is excused for an additional 10 days.
    (2) If OGE has determined that unusual circumstances apply, as 
defined in 5 U.S.C. 552(a)(6)(B), and more than 5,000 pages are 
necessary to respond to the request, OGE may charge search fees (or in 
the case of requesters described under Sec.  2604.502(c), duplication 
fees) if OGE has provided timely written notice to the requester in 
accordance with 5 U.S.C. 552(a)(6)(B) and OGE has discussed with the 
requester via written mail, email, or telephone (or made not less than 
three good-faith attempts to do so) how the requester could effectively 
limit the scope of the request in accordance with 5. U.S.C. 
552(a)(6)(B)(ii).
    (3) If a court has determined that exceptional circumstances exist, 
as defined in 5 U.S.C. 552(a)(6)(B), a failure to comply with the time 
limits shall be excused for the length of time provided by the court 
order.

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



Sec.  2604.504  Miscellaneous fee provisions.

    (a) Notice of anticipated fees in excess of $25.00. Where OGE 
determines or estimates that the fees to be assessed under this section 
may amount to more than $25.00, it will notify the requester as soon as 
practicable of the actual or estimated amount of fees, unless the 
requester has indicated in advance the willingness to pay fees as high 
as those anticipated. Where a requester has been notified that the 
actual or estimated fees may exceed $25.00, the request will be deemed 
not to have been received until the requester has agreed to pay the 
anticipated total fee. A notice to the requester pursuant to this 
paragraph (a) will include the opportunity to confer with OGE personnel 
in order to reformulate the request to meet the requester's needs at a 
lower cost.
    (b) Aggregating requests. A requester may not file multiple 
requests, each seeking portions of a document or documents in order to 
avoid the payment of fees. Where there is reason to believe that a 
requester, or group of requesters acting in concert, is attempting to 
divide a request into a series of requests for the purpose of evading 
the assessment of fees, OGE may aggregate the requests and charge 
accordingly. OGE will presume that multiple requests of this type made 
within a 30-calendar day period have been made in order to evade fees. 
Multiple requests regarding unrelated matters will not be aggregated.

[[Page 529]]

    (c) Advance payments. An advance payment before work is commenced or 
continued will not be required unless:
    (1) OGE estimates or determines that the total fee to be assessed 
under this section is likely to exceed $250.00. When a determination is 
made that the allowable charges are likely to exceed $250.00, the 
requester will be notified of the likely cost and will be required to 
provide satisfactory assurance of full payment where the requester has a 
history of prompt payment of FOIA fees, or will be required to submit an 
advance payment of an amount up to the full estimated charges in the 
case of requesters with no history of payment; or
    (2) A requester has previously failed to pay a fee charged in a 
timely fashion (i.e., within 30 calendar days of the date of the 
billing). In such cases the requester may be required to pay the full 
amount owed plus any applicable interest as provided by paragraph (e) of 
this section, and to make an advance payment of the full amount of the 
estimated fee before OGE begins to process a new request.
    (3) When OGE requests an advance payment of fees, the administrative 
time limits described in subsection (a)(6) of the FOIA will begin to run 
only after OGE has received the advance payment.
    (d) Billing and payment. Normally OGE will require a requester to 
pay all fees before furnishing the requested records. However, OGE may 
send a bill along with, or following the furnishing of records, in cases 
where the requester has a history of prompt payment.
    (e) Interest charges. Interest charges on an unpaid bill may be 
assessed starting on the 31st calendar day following the day on which 
the billing was sent. Interest will be at the rate prescribed in 31 
U.S.C. 3717 and will accrue from the date of billing. To collect unpaid 
bills, OGE will follow the provisions of the Debt Collection Act of 
1982, as amended (96 Stat. 1749 et seq.) including the use of consumer 
reporting agencies, collection agencies, and offset.



                    Subpart F_Annual OGE FOIA Report



Sec.  2604.601  Electronic posting and submission of annual OGE FOIA report.

    On or before February 1 of each year, OGE will submit to the Office 
of Information Policy at the United States Department of Justice and to 
the Director of OGIS an Annual FOIA Report. The report will include the 
information required by 5 U.S.C. 552(e). OGE will electronically post on 
its Web site the report and the raw statistical data used in each 
report, in accordance with 5 U.S.C. 552(e)(3).

[80 FR 57073, Sept. 22, 2015, as amended at 81 FR 94216, Dec. 23, 2016]



  Subpart G_Fees for the Reproduction and Mailing of Public Financial 
                           Disclosure Reports



Sec.  2604.701  Policy.

    Fees for the reproduction and mailing of public financial disclosure 
reports requested pursuant to section 105 of the Ethics in Government 
Act of 1978, as amended, and Sec.  2634.603 of this chapter will be 
assessed according to the schedule contained in Sec.  2604.702. 
Requesters will pay fees by check or money order made payable to the 
Treasury of the United States. Except as provided in Sec.  2604.702(d), 
nothing concerning fees in subpart E of this part supersedes the charges 
set forth in this subpart for records covered in this subpart.



Sec.  2604.702  Charges.

    (a) Duplication. Except as provided in paragraph (c) of this 
section, copies of public financial disclosure reports requested 
pursuant to section 105 of the Ethics in Government Act of 1978, as 
amended, and Sec.  2634.603 of this chapter will be provided upon 
payment of $0.15 per page furnished.
    (b) Mailing. Except as provided in paragraph (c) of this section, 
the actual direct cost of mailing public financial disclosure reports 
will be charged for all forms requested. Where OGE elects

[[Page 530]]

to comply, as a matter of administrative discretion, with a request for 
special mailing services, the actual direct cost of such service will be 
charged.
    (c) Minimum fees. OGE will not assess fees for individual requests 
if the total charge would be $10.00 or less.
    (d) Miscellaneous fee provisions. The miscellaneous fee provisions 
set forth in Sec.  2604.504 apply to requests for public financial 
disclosure reports pursuant to Sec.  2634.603 of this chapter.



PART 2606_PRIVACY ACT RULES--Table of Contents



                      Subpart A_General Provisions

Sec.
2606.101 Purpose.
2606.102 Definitions.
2606.103 Systems of records.
2606.104 OGE and agency responsibilities.
2606.105 Rules for individuals seeking to ascertain if they are the 
          subject of a record.
2606.106 OGE employee Privacy Act rules of conduct and responsibilities.

        Subpart B_Access to Records and Accounting of Disclosures

2606.201 Requests for access.
2606.202 OGE or other agency action on requests.
2606.203 Granting access.
2606.204 Request for review of an initial denial of access.
2606.205 Response to a request for review of an initial denial of 
          access.
2606.206 Fees.
2606.207 Accounting of disclosures.

                     Subpart C_Amendment of Records

2606.301 Requests to amend records.
2606.302 OGE or other agency action on requests.
2606.303 Request for review of an initial refusal to amend a record.
2606.304 Response to a request for review of an initial refusal to 
          amend; disagreement statements.

    Authority: 5 U.S.C. 552a, 5 U.S.C. App. (Ethics in Government Act of 
1978).

    Source: 68 FR 27891, May 22, 2003, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2606.101  Purpose.

    This part sets forth the regulations of the Office of Government 
Ethics (OGE) implementing the Privacy Act of 1974, as amended (5 U.S.C. 
552a). It governs access, maintenance, disclosure, and amendment of 
records contained in OGE's executive branch Governmentwide and internal 
systems of records, and establishes rules of conduct for OGE employees 
who have responsibilities under the Act.



Sec.  2606.102  Definitions.

    For the purpose of this part, the terms listed below are defined as 
follows:
    Access means providing a copy of a record to, or allowing review of 
the original record by, the data subject or the requester's authorized 
representative, parent or legal guardian;
    Act means the Privacy Act of 1974, as amended, 5 U.S.C. 552a;
    Amendment means the correction, addition, deletion, or destruction 
of a record or specific portions of a record;
    Data subject means the individual to whom the information pertains 
and by whose name or other individual identifier the information is 
maintained or retrieved;
    He, his, and him include she, hers and her.
    Office or OGE means the U.S. Office of Government Ethics;
    System manager means the Office or other agency official who has the 
authority to decide Privacy Act matters relative to a system of records;
    System of records means a group of any records containing personal 
information controlled and managed by OGE from which information is 
retrieved by the name of an individual or by some personal identifier 
assigned to that individual;
    Working day as used in calculating the date when a response is due 
means calendar days, excepting Saturdays, Sundays, and legal public 
holidays.



Sec.  2606.103  Systems of records.

    (a) Governmentwide systems of records. The Office of Government 
Ethics maintains two executive branch Governmentwide systems of records: 
the OGE/GOVT-1 system of records, comprised of Executive Branch 
Personnel Public Financial Disclosure Reports and Other Name-Retrieved 
Ethics Program Records; and the OGE/GOVT-2 system of records, comprised 
of Executive

[[Page 531]]

Branch Confidential Financial Disclosure Reports. These Governmentwide 
systems of records are maintained by OGE, and through Office delegations 
of authority, by Federal executive branch departments and agencies with 
regard to their own employees, applicants for employment, individuals 
nominated to a position requiring Senate confirmation, candidates for a 
position, and former employees.
    (b) OGE Internal systems of records. The Office of Government Ethics 
internal systems of records are under OGE's physical custody and control 
and are established and maintained by the Office on current and former 
OGE employees regarding matters relating to the internal management of 
the Office. These systems of records consist of the OGE/INTERNAL-1 
system, comprised of Pay, Leave and Travel Records; the OGE/INTERNAL-2 
system, comprised of Telephone Call Detail Records; the OGE/INTERNAL-3 
system, comprised of Grievance Records; the OGE/INTERNAL-4 system, 
comprised of Computer Systems Activity and Access Records; and the OGE/
INTERNAL-5 system, comprised of Employee Locator and Emergency 
Notification Records.



Sec.  2606.104  OGE and agency responsibilities.

    (a) The procedures in this part apply to:
    (1) All initial Privacy Act access and amendment requests regarding 
records contained in an OGE system of records.
    (2) Administrative appeals from an Office or agency denial of an 
initial request for access to, or to amend, records contained in an OGE 
system of records.
    (b) For records contained in an OGE Governmentwide system of 
records, each agency is responsible (unless specifically excepted by the 
Office) for responding to initial requests for access or amendment of 
records in its custody and administrative appeals of denials thereof.
    (c) For records and material of another agency that are in the 
custody of OGE, but not under its control or ownership, OGE may refer a 
request for the records to that other agency, consult with the other 
agency prior to responding, or notify the requester that the other 
agency is the proper agency to contact.



Sec.  2606.105  Rules for individuals seeking to ascertain if they are 
the subject of a record.

    An individual seeking to ascertain if any OGE system of records 
contains a record pertaining to him must follow the access procedures 
set forth at Sec.  2606.201(a) and (b).



Sec.  2606.106  OGE employee Privacy Act rules of conduct and responsibilities.

    Each OGE employee involved in the design, development, operation, or 
maintenance of any system of records, or in maintaining any record 
covered by the Privacy Act, shall comply with the pertinent provisions 
of the Act relating to the treatment of such information. Particular 
attention is directed to the following provisions of the Privacy Act:
    (a) 5 U.S.C. 552a(e)(7). The requirement to maintain in a system of 
records no record describing how any individual exercises rights 
guaranteed by the First Amendment of the Constitution of the United 
States unless expressly authorized by statute or by the individual about 
whom the record is maintained or unless pertinent to and within the 
scope of an authorized law enforcement activity.
    (b) 5 U.S.C. 552a(b). The requirement that no agency shall disclose 
any record which is contained in a system of records by any means of 
communication to any person or to another agency, except pursuant to a 
written request by, or with the prior written consent of, the individual 
to whom the record pertains, except under certain limited conditions 
specified in subsections (b)(1) through (b)(12) of the Privacy Act.
    (c) 5 U.S.C. 552a(e)(1). The requirement for an agency to maintain 
in its systems of records only such information about an individual as 
is relevant and necessary to accomplish a purpose of the agency required 
to be accomplished by statute or by Executive order.
    (d) 5 U.S.C. 552a(e)(2). The requirement to collect information to 
the greatest extent practicable directly

[[Page 532]]

from the subject individual when the information may result in adverse 
determinations about an individual's rights, benefits, and privileges 
under Federal programs.
    (e) 5 U.S.C. 552a(e)(3). The requirement to inform each individual 
asked to supply information to be maintained in a system of records the 
authority which authorizes the solicitation of the information and 
whether disclosure of such information is mandatory or voluntary; the 
principal purpose or purposes for which the information is intended to 
be used; the routine uses which may be made of the information; and the 
effects on the individual, if any, of not providing all or any part of 
the requested information.
    (f) 5 U.S.C. 552a(b) and (e)(10). The requirement to comply with 
established safeguards and procedures to ensure the security and 
confidentiality of records and to protect personal data from any 
anticipated threats or hazards to their security or integrity which 
could result in substantial harm, embarrassment, inconvenience, or 
unfairness to an individual on whom information is maintained in a 
system of records.
    (g) 5 U.S.C. 552a(c)(1), (c)(2) and (c)(3). The requirement to 
maintain an accounting of specified disclosures of personal information 
from systems of records in accordance with established Office 
procedures.
    (h) 5 U.S.C. 552a(e)(5) and (e)(6). The requirements to maintain all 
records in a system of records which are used by the agency in making 
any determination about an individual with such accuracy, relevance, 
timeliness, and completeness as is reasonably necessary to assure 
fairness to the individual in the determination; and to make reasonable 
efforts to assure that such records are accurate, complete, timely, and 
relevant for agency purposes, prior to disseminating any record about an 
individual to any person other than an agency (unless the dissemination 
is required by the Freedom of Information Act, 5 U.S.C. 552).
    (i) 5 U.S.C. 552a(d)(1), (d)(2) and (d)(3). The requirement to 
permit individuals to have access to records pertaining to themselves in 
accordance with established Office procedures and to have an opportunity 
to request that such records be amended.
    (j) 5 U.S.C. 552a(c)(4) and (d)(4). The requirement to inform any 
person or other agency about any correction or notation of dispute made 
by the agency in accordance with subsection (d) of the Act of any record 
that has been disclosed to the person or agency if an accounting of the 
disclosure was made; and, in any disclosure of information about which 
an individual has filed a statement of disagreement, to note clearly any 
portion of the record which is disputed and to provide copies of the 
statement (and if the agency deems it appropriate, copies of a concise 
statement of the reasons of the agency for not making the amendments 
requested) to persons or other agencies to whom the disputed record has 
been disclosed.
    (k) 5 U.S.C. 552a(n). The requirement for an agency not to sell or 
rent an individual's name or address, unless such action is specifically 
authorized by law.
    (l) 5 U.S.C. 552a(i). The criminal penalties to which an employee 
may be subject for failing to comply with certain provisions of the 
Privacy Act.



        Subpart B_Access to Records and Accounting of Disclosures



Sec.  2606.201  Requests for access.

    (a) Records in an OGE Governmentwide system of records. An 
individual requesting access to records pertaining to him in an OGE 
Governmentwide system of records should submit a written request, which 
includes the words ``Privacy Act Request'' on both the envelope and at 
the top of the request letter, to the appropriate system manager as 
follows:
    (1) Records filed directly with OGE by non-OGE employees: The Deputy 
Director, Office of Agency Programs, Office of Government Ethics, Suite 
500, 1201 New York Avenue, NW., Washington, DC 20005-3917;
    (2) Records filed with a Designated Agency Ethics Official (DAEO) or 
the head of a department or agency: The DAEO at the department or agency 
concerned; or

[[Page 533]]

    (3) Records filed with the Federal Election Commission by candidates 
for President or Vice President: The General Counsel, Office of General 
Counsel, Federal Election Commission, 999 E Street, NW., Washington, DC 
20463.
    (b) Records in an OGE Internal System of Records. An individual 
requesting access to records pertaining to him in an OGE internal system 
of records should submit a written request, which includes the words 
``Privacy Act Request'' on both the envelope and at the top of the 
request letter, to the Deputy Director, Office of Administration and 
Information Management, Office of Government Ethics, Suite 500, 1201 New 
York Avenue, NW., Washington, DC 20005-3917.
    (c) Content of request. (1) A request should contain a specific 
reference to the OGE system of records from which access to the records 
is sought. Notices of OGE systems of records subject to the Privacy Act 
are published in the Federal Register, and copies of the notices are 
available on OGE's Web site at http://www.usoge.gov, or upon request 
from OGE's Office of General Counsel and Legal Policy. A biennial 
compilation of such notices also is made available online and published 
by the Office of Federal Register at the GPO Access Web site (http://
www.access.gpo.gov/su_docs/aces/PrivacyAct.shtml) in accordance with 5 
U.S.C. 552a(f) of the Act.
    (2) If the written inquiry does not refer to a specific system of 
records, it should include other information that will assist in the 
identification of the records for which access is being requested. Such 
information may include, for example, the individual's full name 
(including her maiden name, if pertinent), dates of employment, social 
security number (if any records in the system include this identifier), 
current or last place and date of Federal employment. If the request for 
access follows a prior request to determine if an individual is the 
subject of a record, the same identifying information need not be 
included in the request for access if a reference is made to that prior 
correspondence, or a copy of the response to that request is attached.
    (3) The request should state whether the requester wants a copy of 
the record, or wants to examine the record in person.



Sec.  2606.202  OGE or other agency action on requests.

    A response to a request for access should include the following:
    (a) A statement that there is a record or records as requested or a 
statement that there is not a record in the system of records;
    (b) The method of access (if a copy of all the records requested is 
not provided with the response);
    (c) The amount of any fees to be charged for copies of records under 
Sec.  2606.206 of this part or other agencies' Privacy Act regulations 
as referenced in that section;
    (d) The name, title, and telephone number of the official having 
operational control over the record; and
    (e) If the request is denied in whole or in part, or no record is 
found in the system, a statement of the reasons for the denial, or a 
statement that no record has been found, and notice of the procedures 
for appealing the denial or no record finding.



Sec.  2606.203  Granting access.

    (a) The methods for allowing access to records, when such access has 
been granted by OGE or the other agency concerned are:
    (1) Examination in person in a designated office during the hours 
specified by OGE or the other agency;
    (2) Providing photocopies of the records; or
    (3) Transfer of records at the option of OGE or the other agency to 
another more convenient Federal facility.
    (b) When a requester has not indicated whether he wants a copy of 
the record, or wants to examine the record in person, the appropriate 
system manager may choose the means of granting access. However, the 
means chosen should not unduly impede the data subject's right of 
access. A data subject may elect to receive a copy of the records after 
having examined them.
    (c) Generally, OGE or the other agency concerned will not furnish 
certified copies of records. When copies are to be furnished, they may 
be provided as determined by OGE or the other agency concerned.

[[Page 534]]

    (d) When the data subject seeks to obtain original documentation, 
the Office and the other agencies concerned reserve the right to limit 
the request to copies of the original records. Original records should 
be made available for review only in the presence of the appropriate 
system manager or his designee.

    Note to paragraph (d) of Sec.  2606.203: Section 2071(a) of title 18 
of the United States Code makes it a crime to conceal, remove, mutilate, 
obliterate, or destroy any record filed in a public office, or to 
attempt to do so.

    (e) Identification requirements--(1) Access granted in person--(i) 
Current or former employees. Current or former employees requesting 
access to records pertaining to them in a system of records may, in 
addition to the other requirements of this section, and at the sole 
discretion of the official having operational control over the record, 
have their identity verified by visual observation. If the current or 
former employee cannot be so identified by the official having 
operational control over the records, adequate identification 
documentation will be required, e.g., an employee identification card, 
driver's license, passport, or other officially issued document with a 
picture of the person requesting access.
    (ii) Other than current or former employees. Individuals other than 
current or former employees requesting access to records pertaining to 
them in a system of records must produce adequate identification 
documentation prior to being granted access. The extent of the 
identification documentation required will depend on the type of records 
to be accessed. In most cases, identification verification will be 
accomplished by the presentation of two forms of identification with a 
picture of the person requesting access (such as a driver's license and 
passport). Any additional requirements are specified in the system 
notices published pursuant to subsection (e)(4) of the Act.
    (2) Access granted by mail. For records to be accessed by mail, the 
appropriate system manager shall, to the extent possible, establish 
identity by a comparison of signatures in situations where the data in 
the record is not so sensitive that unauthorized access could cause harm 
or embarrassment to the individual to whom they pertain. No 
identification documentation will be required for the disclosure to the 
data subject of information required to be made available to the public 
by 5 U.S.C. 552, the Freedom of Information Act. When, in the opinion of 
the system manager, the granting of access through the mail could 
reasonably be expected to result in harm or embarrassment if disclosed 
to a person other than the individual to whom the record pertains, a 
notarized statement of identity or some similar assurance of identity 
may be required.
    (3) Unavailability of identification documentation. If an individual 
is unable to produce adequate identification documentation, the 
individual will be required to sign a statement asserting identity and 
acknowledging that knowingly or willfully seeking or obtaining access to 
records about another person under false pretenses may result in a 
criminal fine of up to $5,000 under subsection (i)(3) of the Act. In 
addition, depending upon the sensitivity of the records sought to be 
accessed, the appropriate system manager or official having operational 
control over the records may require such further reasonable assurances 
as may be considered appropriate, e.g., statements of other individuals 
who can attest to the identity of the data subject. No verification of 
identity will be required of data subjects seeking access to records 
which are otherwise available to any person under 5 U.S.C. 552.
    (4) Inadequate identification. If the official having operational 
control over the records in a system of records determines that an 
individual seeking access has not provided sufficient identification 
documentation to permit access, the official shall consult with the 
appropriate system manager prior to denying the individual access. 
Whenever the system manager determines, in accordance with the 
procedures herein, that access will not be granted, the response will 
also include a statement of the procedures to obtain a review of the 
decision to deny access in accordance with Sec.  2606.205.
    (f) Access by the parent of a minor, or legal guardian. A parent of 
a minor,

[[Page 535]]

upon presenting suitable personal identification as otherwise provided 
under this section, may access on behalf of the minor any record 
pertaining to the minor in a system of records. A legal guardian, upon 
presentation of documentation establishing guardianship and suitable 
personal identification as otherwise provided under this section, may 
similarly act on behalf of a data subject declared to be incompetent due 
to physical or mental incapacity or age by a court of competent 
jurisdiction. Minors are not precluded from exercising on their own 
behalf rights given to them by the Privacy Act.
    (g) Accompanying individual. A data subject requesting access to his 
records in a system of records may be accompanied by another individual 
of the data subject's choice during the course of the examination of the 
record. The official having operational control of the record may 
require the data subject making the request to submit a signed statement 
authorizing the accompanying individual's access to the record.
    (h) Access to medical records. When a request for access involves 
medical or psychological records that the appropriate system manager 
believes requires special handling, the data subject should be advised 
that the material will be provided only to a physician designated by the 
data subject. Upon receipt of the designation and upon verification of 
the physician's identity as otherwise provided under this section, the 
records will be made available to the physician, who will disclose those 
records to the data subject.
    (i) Exclusion. Nothing in these regulations permits a data subject's 
access to any information compiled in reasonable anticipation of a civil 
action or proceeding (see subsection (d)(5) of the Act).
    (j) Maximum access. This regulation is not intended to preclude 
access by a data subject to records that are available to that 
individual under other processes, such as the Freedom of Information Act 
(5 U.S.C. 552) or the rules of civil or criminal procedure, provided 
that the appropriate procedures for requesting access thereunder are 
followed.



Sec.  2606.204  Request for review of an initial denial of access.

    (a)(1) A data subject may submit a written appeal of the decision by 
OGE or the other agency to deny an initial request for access to records 
or a no record response.
    (i) For records filed directly with OGE, the appeal must be 
submitted to the Director, Office of Government Ethics, Suite 500, 1201 
New York Avenue, NW., Washington, DC 20005-3917.
    (ii) For records in OGE's executive branch Governmentwide systems of 
records that are filed directly with an agency (including the Federal 
Election Commission) other than OGE, the appeal must be submitted to the 
Privacy Act access appeals official as specified in the agency's own 
Privacy Act regulations or the respective head of the agency concerned 
if it does not have any Privacy Act regulations.
    (2) The words ``Privacy Act Appeal'' should be included on the 
envelope and at the top of the letter of appeal.
    (b) The appeal should contain a brief description of the records 
involved or copies of the correspondence from OGE or the agency in which 
the initial request for access was denied. The appeal should attempt to 
refute the reasons given by OGE or the other agency concerned in its 
decision to deny the initial request for access or the no record 
finding.



Sec.  2606.205  Response to a request for review of an initial 
denial of access.

    (a) If the OGE Director or agency reviewing official determines that 
access to the records should be granted, the response will state how 
access will be provided if the records are not included with the 
response.
    (b) Any decision that either partially or fully affirms the initial 
decision to deny access shall inform the requester of the right to seek 
judicial review of the decision in accordance with 5 U.S.C. 552a(g) of 
the Privacy Act.



Sec.  2606.206  Fees.

    (a) Fees for records filed with OGE--(1) Services for which fees 
will not be charged:
    (i) The search and review time expended by OGE to produce a record;

[[Page 536]]

    (ii) The first copy of the records provided; or
    (iii) The Office of Government Ethics making the records available 
to be personally reviewed by the data subject.
    (2) Additional copies of records. When additional copies of records 
are requested, an individual may be charged $.15 per page.
    (i) Notice of anticipated fees in excess of $25.00. If the charge 
for these additional copies amounts to more than $25.00, the requester 
will be notified and payment of fees may be required before the 
additional copies are provided, unless the requester has indicated in 
advance his willingness to pay fees as high as those anticipated.
    (ii) Advance payments. An advance payment before additional copies 
of the records are made will be required if:
    (A) The Office estimates or determines that the total fee to be 
assessed under this section is likely to exceed $250.00. When a 
determination is made that the allowable charges are likely to exceed 
$250.00, the requester will be notified of the likely cost and will be 
required to provide satisfactory assurance of full payment where the 
requester has a history of prompt payment of Privacy Act fees, or will 
be required to submit an advance payment of an amount up to the full 
estimated charges in the case of requesters with no history of payment; 
or
    (B) The requester has previously failed to pay a Privacy Act fee 
charged in a timely fashion (i.e., within 30 days of the date of the 
billing). In such cases, the requester may be required to pay the full 
amount owed plus any applicable interest as provided by paragraph 
(a)(2)(iii) of this section, and to make an advance payment of the full 
amount of the estimated fee before the Office begins to process a new 
request.
    (iii) Interest charges. Interest charges on an unpaid bill may be 
assessed starting on the 31st day following the day on which the billing 
was sent. Interest shall be at the rate prescribed in 31 U.S.C. 3717 and 
shall accrue from the date of billing. To collect unpaid bills, the 
Office will follow the provisions of the Debt Collection Act of 1982, as 
amended (96 Stat. 1749 et seq.) and the Debt Collection Improvement Act 
of 1996 (110 Stat. 1321-358 et seq.), including the use of consumer 
reporting agencies, collection agencies, and offset.
    (iv) Remittance. Remittance should be made by either a personal 
check, bank draft or a money order that is payable to the Department of 
the Treasury of the United States.
    (b) Fees for records filed with agencies other than OGE. An agency 
shall apply its own Privacy Act fee schedule for records in OGE's 
executive branch Governmentwide systems that are filed directly with the 
agency. An agency that does not have a Privacy Act fee schedule may 
apply the fee schedule in this section.



Sec.  2606.207  Accounting of disclosures.

    (a) The Office of Government Ethics or the other agency concerned 
will maintain an accounting of disclosures in cases where records about 
the data subject are disclosed from OGE's system of records except--
    (1) When the disclosure is made pursuant to the Freedom of 
Information Act, as amended (5 U.S.C. 552); or
    (2) When the disclosure is made to those officers and employees of 
OGE or the other agency which maintains the records who have a need for 
the records in the performance of their duties.
    (b) This accounting of disclosures will be retained for at least 
five years or for the life of the record, whichever is longer, and will 
contain the following information:
    (1) A brief description of the record disclosed;
    (2) The date, nature, and purpose for the disclosure; and
    (3) The name and address of the individual, agency, or other entity 
to whom the disclosure is made.
    (c) Under sections 102 and 105 of the Ethics in Government Act, 18 
U.S.C. 208(d) and 5 CFR parts 2634 and 2640 of OGE's executive branch 
regulations, a requester other than the data subject must submit a 
signed, written application on the OGE Form 201 or agency equivalent 
form to inspect or receive copies of certain records, such as SF 278 
Public Financial Disclosure Reports, Certificates of Divestiture, 18 
U.S.C. 208(b)(1) and (b)(3) waivers, and

[[Page 537]]

OGE certified qualified blind and diversified trust instruments and 
other publicly available qualified trust materials. The written 
application requests the name, occupation and address of the requester 
as well as lists the prohibitions on obtaining or using the records. 
These applications are used as the accounting of disclosures for these 
records.
    (d) Except for the accounting of a disclosure made under subsection 
(b)(7) of the Privacy Act for a civil or criminal law enforcement 
activity that is authorized by law, the accounting of disclosures will 
be made available to the data subject upon request in accordance with 
the access procedures of this part.



                     Subpart C_Amendment of Records



Sec.  2606.301  Requests to amend records.

    (a) Amendment request. A data subject seeking to amend a record or 
records that pertain to him in a system of records must submit his 
request in writing in accordance with the following procedures, unless 
this requirement is waived by the appropriate system manager. Records 
not subject to the Privacy Act will not be amended in accordance with 
these provisions.
    (b) Addresses--(1) Records in an OGE Governmentwide system of 
records. A request to amend a record in an OGE Governmentwide system of 
records should be sent to the appropriate system manager as follows:
    (i) Records filed directly with OGE by non-OGE employees: The Deputy 
Director, Office of Agency Programs, Office of Government Ethics, Suite 
500, 1201 New York Avenue, NW., Washington, DC 20005-3917;
    (ii) Records filed with a Designated Agency Ethics Official (DAEO) 
or the head of a department or agency: The DAEO at the department or 
agency concerned; or
    (iii) Records filed with the Federal Election Commission by 
candidates for President or Vice President: The General Counsel, Office 
of General Counsel, Federal Election Commission, 999 E Street, NW., 
Washington, DC 20463.
    (2) Records in an OGE internal system of records. A request to amend 
a record in an OGE internal system of records should include the words 
``Privacy Act Amendment Request'' on both the envelope and at the top of 
the request letter, and should be sent to the Deputy Director, Office of 
Administration and Information Management, Office of Government Ethics, 
Suite 500, 1201 New York Avenue, NW., Washington, DC 20005-3917.
    (c) Contents of request. (1) A request to amend a record in an OGE 
Governmentwide system of records or an OGE internal system of records 
should include the words ``Privacy Act Amendment Request'' on both the 
envelope and at the top of the request letter.
    (2) The name of the system of records and a brief description of the 
record(s) proposed for amendment must be included in any request for 
amendment. In the event the request to amend the record(s) is the result 
of the data subject's having gained access to the record(s) in 
accordance with the provisions concerning access to records as set in 
subpart B of this part, copies of previous correspondence between the 
requester and OGE or the agency will serve in lieu of a separate 
description of the record.
    (3) The exact portion of the record(s) the data subject seeks to 
have amended should be indicated clearly. If possible, proposed 
alternative language should be set forth, or, at a minimum, the reasons 
why the data subject believes his record is not accurate, relevant, 
timely, or complete should be set forth with enough particularity to 
permit OGE or the other agency concerned not only to understand the data 
subject's basis for the request, but also to make an appropriate 
amendment to the record.
    (d) Burden of proof. The data subject has the burden of proof when 
seeking the amendment of a record. The data subject must furnish 
sufficient facts to persuade the appropriate system manager of the 
inaccuracy, irrelevance, untimeliness, or incompleteness of the record.
    (e) Identification requirement. When the data subject's identity has 
been previously verified pursuant to Sec.  2606.203, further 
verification of identity is not required as long as the communication 
does not suggest a need for

[[Page 538]]

verification. If the data subject's identity has not been previously 
verified, the appropriate system manager may require identification 
validation as described in Sec.  2606.203.



Sec.  2606.302  OGE or other agency action on requests.

    (a) Time limit for acknowledging a request for amendment. To the 
extent possible, OGE or the other agency concerned will acknowledge 
receipt of a request to amend a record or records within 10 working 
days.
    (b) Initial determination on an amendment request. The decision of 
OGE or the other agency in response to a request for amendment of a 
record in a system of records may grant in whole, or deny any part of 
the request to amend the record(s).
    (1) If OGE or the other agency concerned grants the request, the 
appropriate system manager will amend the record(s) and provide a copy 
of the amended record(s) to the data subject. Where an accounting of 
disclosure has been maintained, the system manager shall advise all 
previous recipients of the record that an amendment has been made and 
give the substance of the amendment. Where practicable, the system 
manager shall send a copy of the amended record to previous recipients.
    (2) If OGE or the other agency concerned denies the request in whole 
or in part, the reasons for the denial will be stated in the response 
letter. In addition, the response letter will state:
    (i) The name and address of the official with whom an appeal of the 
denial may be lodged; and
    (ii) A description of any other procedures which may be required of 
the data subject in order to process the appeal.



Sec.  2606.303  Request for review of an initial refusal to amend a record.

    (a)(1) A data subject may submit a written appeal of the initial 
decision by OGE or an agency denying a request to amend a record in an 
OGE system of records.
    (i) For records which are filed directly with OGE, the appeal must 
be submitted to the Director, Office of Government Ethics, Suite 500, 
1201 New York Avenue, NW., Washington, DC 20005-3917.
    (ii) For records which are filed directly with an agency (including 
the Federal Election Commission) other than OGE, the appeal must be 
submitted to the Privacy Act amendments appeals official as specified in 
the agency's own Privacy Act regulations, or to the respective head of 
the agency concerned if it does not have Privacy Act regulations.
    (2) The words ``Privacy Act Appeal'' should be included on the 
envelope and at the top of the letter of the appeal.
    (b) The request for review should contain a brief description of the 
record(s) involved or copies of the correspondence from OGE or the 
agency in which the request to amend was denied, and the reasons why the 
data subject believes that the disputed information should be amended.



Sec.  2606.304  Response to a request for review of an initial 
refusal to amend; disagreement statements.

    (a) The OGE Director or agency reviewing official should make a 
final determination in writing not later than 30 days from the date the 
appeal was received. The 30-day period may be extended for good cause. 
Notice of the extension and the reasons therefor will be sent to the 
data subject within the 30-day period.
    (b) If the OGE Director or agency reviewing official determines that 
the record(s) should be amended in accordance with the data subject's 
request, the OGE Director or agency reviewing official will take the 
necessary steps to advise the data subject, and to direct the 
appropriate system manager:
    (1) To amend the record(s), and
    (2) To notify previous recipients of the record(s) for which there 
is an accounting of disclosure that the record(s) have been amended.
    (c) If the appeal decision does not grant in full the request for 
amendment, the decision letter will notify the data subject that he may:
    (1) Obtain judicial review of the decision in accordance with the 
terms of the Privacy Act at 5 U.S.C. 552a(g); and
    (2) File a statement setting forth his reasons for disagreeing with 
the decision.

[[Page 539]]

    (d)(1) A data subject's disagreement statement must be concise. The 
appropriate system manager has the authority to determine the 
``conciseness'' of the statement, taking into account the scope of the 
disagreement and the complexity of the issues.
    (2) In any disclosure of information about which an individual has 
filed a statement of disagreement, the appropriate system manager will 
clearly note any disputed portion(s) of the record(s) and will provide a 
copy of the statement to persons or other agencies to whom the disputed 
record or records has been disclosed and for whom an accounting of 
disclosure has been maintained. A concise statement of the reasons for 
not making the amendments requested may also be provided.



PART 2608_TESTIMONY BY OGE EMPLOYEES RELATING TO OFFICIAL INFORMATION 
AND PRODUCTION OF OFFICIAL RECORDS IN LEGAL PROCEEDINGS--Table of Contents



                      Subpart A_General Provisions

Sec.
2608.101 Scope and purpose.
2608.102 Applicability.
2608.103 Definitions.

      Subpart B_Requests for Testimony and Production of Documents

2608.201 General prohibition.
2608.202 Factors OGE will consider.
2608.203 Filing requirements for demands or requests for documents or 
          testimony.
2608.204 Service of subpoenas or requests.
2608.205 Processing demands or requests.
2608.206 Final determination.
2608.207 Restrictions that apply to testimony.
2608.208 Restrictions that apply to released records.
2608.209 Procedure when a decision is not made prior to the time a 
          response is required.
2608.210 Procedure in the event of an adverse ruling.

                       Subpart C_Schedule of Fees

2608.301 Fees.

                           Subpart D_Penalties

2608.401 Penalties.

    Authority: 5 U.S.C. App. (Sec. 401, Ethics in Government Act of 
1978); 31 U.S.C. 9701; 44 U.S.C. 3101-3107, 3301-3303a, 3308-3314.

    Source: 67 FR 35710, May 21, 2002, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2608.101  Scope and purpose.

    (a) This part sets forth policies and procedures you must follow 
when you submit a demand or request to an employee of the Office of 
Government Ethics (OGE) to produce official records and information, or 
provide testimony relating to official information, in connection with a 
legal proceeding. You must comply with these requirements when you 
request the release or disclosure of official records and information.
    (b) The Office of Government Ethics intends these provisions to:
    (1) Promote economy and efficiency in its programs and operations;
    (2) Minimize the possibility of involving OGE in controversial 
issues not related to our functions;
    (3) Maintain OGE's impartiality among private litigants where OGE is 
not a named party; and
    (4) Protect sensitive, confidential information and the deliberative 
processes of OGE.
    (c) In providing for these requirements, OGE does not waive the 
sovereign immunity of the United States.
    (d) This part provides guidance for the internal operations of OGE. 
It does not create any right or benefit, substantive or procedural, that 
a party may rely upon in any legal proceeding against the United States.



Sec.  2608.102  Applicability.

    This part applies to demands and requests to employees for factual 
or expert testimony relating to official information, or for production 
of official records or information, in legal proceedings in which OGE is 
not a named party. However, it does not apply to:
    (a) Demands upon or requests for an OGE employee to testify as to 
facts or events that are unrelated to his or her official duties or that 
are unrelated to the functions of OGE;
    (b) Demands upon or requests for a former OGE employee to testify as 
to

[[Page 540]]

matters in which the former employee was not directly or materially 
involved while at the OGE;
    (c) Requests for the release of records under the Freedom of 
Information Act, 5 U.S.C. 552, or the Privacy Act, 5 U.S.C. 552a; and
    (d) Congressional demands and requests for testimony or records.



Sec.  2608.103  Definitions.

    The following definitions apply to this part:
    Demand means a subpoena, or an order or other command of a court or 
other competent authority, for the production, disclosure, or release of 
records or for the appearance and testimony of an OGE employee that is 
issued in a legal proceeding.
    General Counsel means the General Counsel of OGE or a person to whom 
the General Counsel has delegated authority under this part.
    Legal proceeding means any matter before a court of law, 
administrative board or tribunal, commission, administrative law judge, 
hearing officer, or other body that conducts a legal or administrative 
proceeding. Legal proceeding includes all phases of litigation.
    OGE means the U.S. Office of Government Ethics.
    OGE employee or employee means:
    (1)(i) Any current or former officer or employee of OGE;
    (ii) Any other individual hired through contractual agreement by or 
on behalf of OGE or who has performed or is performing services under 
such an agreement for OGE; and
    (iii) Any individual who served or is serving in any consulting or 
advisory capacity to OGE, whether formal or informal.
    (2) Provided, that this definition does not include persons who are 
no longer employed by OGE and who are retained or hired as expert 
witnesses or who agree to testify about general matters, matters 
available to the public, or matters with which they had no specific 
involvement or responsibility during their employment with OGE.
    Records or official records and information mean:
    (1) All documents and materials which are OGE agency records under 
the Freedom of Information Act, 5 U.S.C. 552;
    (2) All other documents and materials contained in OGE files; and
    (3) All other information or materials acquired by an OGE employee 
in the performance of his or her official duties or because of his or 
her official status.
    Request means any informal request, by whatever method, for the 
production of records and information or for testimony which has not 
been ordered by a court or other competent authority.
    Testimony means any written or oral statements, including 
depositions, answers to interrogatories, affidavits, declarations, 
interviews, and statements made by an individual in connection with a 
legal proceeding.



      Subpart B_Requests for Testimony and Production of Documents



Sec.  2608.201  General prohibition.

    No employee may produce official records and information or provide 
any testimony relating to official information in response to a demand 
or request without the prior, written approval of the General Counsel.



Sec.  2608.202  Factors OGE will consider.

    The General Counsel, in his or her sole discretion, may grant an 
employee permission to testify on matters relating to official 
information, or produce official records and information, in response to 
a demand or request. Among the relevant factors that the General Counsel 
may consider in making this decision are whether:
    (a) The purposes of this part are met;
    (b) Allowing such testimony or production of records would be 
necessary to prevent a miscarriage of justice;
    (c) OGE has an interest in the decision that may be rendered in the 
legal proceeding;
    (d) Allowing such testimony or production of records would assist or 
hinder OGE in performing its statutory duties or use OGE resources where 
responding to the demand or request will interfere with the ability of 
OGE employees to do their work;

[[Page 541]]

    (e) Allowing such testimony or production of records would be in the 
best interest of OGE or the United States;
    (f) The records or testimony can be obtained from other sources;
    (g) The demand or request is unduly burdensome or otherwise 
inappropriate under the applicable rules of discovery or the rules of 
procedure governing the case or matter in which the demand or request 
arose;
    (h) Disclosure would violate a statute, Executive order or 
regulation;
    (i) Disclosure would reveal confidential, sensitive, or privileged 
information, trade secrets or similar, confidential commercial or 
financial information, otherwise protected information, or information 
which would otherwise be inappropriate for release;
    (j) Disclosure would impede or interfere with an ongoing law 
enforcement investigation or proceedings, or compromise constitutional 
rights;
    (k) Disclosure would result in OGE appearing to favor one litigant 
over another;
    (l) Disclosure relates to documents that were produced by another 
agency;
    (m) A substantial Government interest is implicated;
    (n) The demand or request is within the authority of the party 
making it; and
    (o) The demand or request is sufficiently specific to be answered.



Sec.  2608.203  Filing requirements for demands or requests for documents 
or testimony.

    You must comply with the following requirements whenever you issue 
demands or requests to an OGE employee for official records and 
information or testimony:
    (a) Your request must be in writing and must be submitted to the 
General Counsel. If you serve a subpoena on OGE or an OGE employee 
before submitting a written request and receiving a final determination, 
OGE will oppose the subpoena on grounds that your request was not 
submitted in accordance with this subpart.
    (b) Your written request must contain the following information:
    (1) The caption of the legal proceeding, docket number, and name and 
address of the court or other authority involved;
    (2) A copy of the complaint or equivalent document setting forth the 
assertions in the case and any other pleading or document necessary to 
show relevance;
    (3) A list of categories of records sought, a detailed description 
of how the information sought is relevant to the issues in the legal 
proceeding, and a specific description of the substance of the testimony 
or records sought;
    (4) A statement as to how the need for the information outweighs the 
need to maintain any confidentiality of the information and outweighs 
the burden on OGE to produce the records or provide testimony;
    (5) A statement indicating that the information sought is not 
available from another source, from other persons or entities, or from 
the testimony of someone other than an OGE employee, such as a retained 
expert;
    (6) If testimony is requested, the intended use of the testimony, a 
general summary of the desired testimony, and a showing that no document 
could be provided and used in lieu of testimony;
    (7) A description of all prior decisions, orders, or pending motions 
in the case that bear upon the relevance of the requested records or 
testimony;
    (8) The name, address, and telephone number of counsel to each party 
in the case; and
    (9) An estimate of the amount of time that the requester and other 
parties will require with each OGE employee for time spent by the 
employee to prepare for testimony, in travel, and for attendance in the 
legal proceeding.
    (c) The Office of Government Ethics reserves the right to require 
additional information to complete your request where appropriate.
    (d) Your request should be submitted at least 45 days before the 
date that records or testimony is required. Requests submitted in less 
than 45 days before records or testimony is required must be accompanied 
by a written explanation stating the reasons for the late request and 
the reasons for expedited processing.
    (e) Failure to cooperate in good faith to enable the General Counsel 
to make an informed decision may serve as the

[[Page 542]]

basis for a determination not to comply with your request.



Sec.  2608.204  Service of subpoenas or requests.

    Subpoenas or requests for official records or information or 
testimony must be served on the General Counsel, Office of Government 
Ethics, Suite 500, 1201 New York Avenue, NW., Washington, DC 20005-3917.



Sec.  2608.205  Processing demands or requests.

    (a) After service of a demand or request to testify, the General 
Counsel will review the demand or request and, in accordance with the 
provisions of this subpart, determine whether, or under what conditions, 
to authorize the employee to testify on matters relating to official 
information and/or produce official records and information.
    (b) The Office of Government Ethics will process requests in the 
order in which they are received. Absent exigent or unusual 
circumstances, OGE will respond within 45 days from the date that we 
receive it. The time for response will depend upon the scope of the 
request.
    (c) The General Counsel may grant a waiver of any procedure 
described by this subpart where a waiver is considered necessary to 
promote a significant interest of OGE or the United States or for other 
good cause.



Sec.  2608.206  Final determination.

    The General Counsel makes the final determination on demands and 
requests to employees for production of official records and information 
or testimony. All final determinations are within the sole discretion of 
the General Counsel. The General Counsel will notify the requester and 
the court or other authority of the final determination, the reasons for 
the grant or denial of the demand or request, and any conditions that 
the General Counsel may impose on the release of records or information, 
or on the testimony of an OGE employee.



Sec.  2608.207  Restrictions that apply to testimony.

    (a) The General Counsel may impose conditions or restrictions on the 
testimony of OGE employees including, for example, limiting the areas of 
testimony or requiring the requester and other parties to the legal 
proceeding to agree that the transcript of the testimony will be kept 
under seal or will only be used or made available in the particular 
legal proceeding for which testimony was requested. The General Counsel 
may also require a copy of the transcript of testimony at the 
requester's expense.
    (b) The Office of Government Ethics may offer the employee's written 
declaration in lieu of testimony.
    (c) If authorized to testify pursuant to this part, an employee may 
testify as to facts within his or her personal knowledge, but, unless 
specifically authorized to do so by the General Counsel, the employee 
shall not:
    (1) Disclose confidential or privileged information; or
    (2) For a current OGE employee, testify as an expert or opinion 
witness with regard to any matter arising out of the employee's official 
duties or the functions of OGE unless testimony is being given on behalf 
of the United States (see also Sec.  2635.805 of this chapter).



Sec.  2608.208  Restrictions that apply to released records.

    (a) The General Counsel may impose conditions or restrictions on the 
release of official records and information, including the requirement 
that parties to the proceeding obtain a protective order or execute a 
confidentiality agreement to limit access and any further disclosure. 
The terms of the protective order or of a confidentiality agreement must 
be acceptable to the General Counsel. In cases where protective orders 
or confidentiality agreements have already been executed, OGE may 
condition the release of official records and information on an 
amendment to the existing protective order or confidentiality agreement.
    (b) If the General Counsel so determines, original OGE records may 
be presented for examination in response

[[Page 543]]

to a demand or request, but they are not to be presented as evidence or 
otherwise used in a manner by which they could lose their identity as 
official OGE records, nor are they to be marked or altered. In lieu of 
the original records, certified copies will be presented for evidentiary 
purposes (see 28 U.S.C. 1733).



Sec.  2608.209  Procedure when a decision is not made prior to 
the time a response is required.

    If a response to a demand or request is required before the General 
Counsel can make the determination referred to in Sec.  2608.201, the 
General Counsel, when necessary, will provide the court or other 
competent authority with a copy of this part, inform the court or other 
competent authority that the demand or request is being reviewed, and 
seek a stay of the demand or request pending a final determination.



Sec.  2608.210  Procedure in the event of an adverse ruling.

    If the court or other competent authority fails to stay the demand 
or request, the employee upon whom the demand or request is made, unless 
otherwise advised by the General Counsel, will appear at the stated time 
and place, produce a copy of this part, state that the employee has been 
advised by counsel not to provide the requested testimony or produce 
documents, and respectfully decline to comply with the demand or 
request, citing United States ex rel. Touhy v. Ragen, 340 U.S. 462 
(1951). A written response may be offered to a request, or to a demand, 
if permitted by the court or other competent authority.



                       Subpart C_Schedule of Fees



Sec.  2608.301  Fees.

    (a) Generally. The General Counsel may condition the production of 
records or appearance for testimony upon advance payment of a reasonable 
estimate of the costs to OGE.
    (b) Fees for records. Fees for producing records will include fees 
for searching, reviewing, and duplicating records, costs of attorney 
time spent in reviewing the demand or request, and expenses generated by 
materials and equipment used to search for, produce, and copy the 
responsive information. Costs for employee time will be calculated on 
the basis of the hourly pay of the employee (including all pay, 
allowance, and benefits). Fees for duplication will be the same as those 
charged by OGE in its Freedom of Information Act and Ethics in 
Government Act fee regulations at 5 CFR part 2604, subparts E and G.
    (c) Witness fees. Fees for attendance by a witness will include 
fees, expenses, and allowances prescribed by the court's rules. If no 
such fees are prescribed, witness fees will be determined based upon the 
rule of the Federal district court closest to the location where the 
witness will appear. Such fees will include cost of time spent by the 
witness to prepare for testimony, in travel, and for attendance in the 
legal proceeding.
    (d) Payment of fees. You must pay witness fees for current OGE 
employees and any records certification fees by submitting to the 
General Counsel a check or money order for the appropriate amount made 
payable to the Treasury of the United States. In the case of testimony 
by former OGE employees, you must pay applicable fees directly to the 
former employee in accordance with 28 U.S.C. 1821 or other applicable 
statutes.
    (e) Certification (authentication) of copies of records. The Office 
of Government Ethics may certify that records are true copies in order 
to facilitate their use as evidence. If you seek certification, you must 
request certified copies from OGE at least 45 days before the date they 
will be needed. The request should be sent to the General Counsel. You 
will be charged a certification fee of $15.00 for each document 
certified.
    (f) Waiver or reduction of fees. The General Counsel, in his or her 
sole discretion, may, upon a showing of reasonable cause, waive or 
reduce any fees in connection with the testimony, production, or 
certification of records.
    (g) De minimis fees. Fees will not be assessed if the total charge 
would be $10.00 or less.

[[Page 544]]



                           Subpart D_Penalties



Sec.  2608.401  Penalties.

    (a) An employee who discloses official records or information or 
gives testimony relating to official information, except as expressly 
authorized by OGE or as ordered by a Federal court after OGE has had the 
opportunity to be heard, may face the penalties provided in 18 U.S.C. 
641 and other applicable laws. Additionally, former OGE employees are 
subject to the restrictions and penalties of 18 U.S.C. 207 and 216.
    (b) A current OGE employee who testifies or produces official 
records and information in violation of this part shall be subject to 
disciplinary action.



PART 2610_IMPLEMENTATION OF THE EQUAL ACCESS TO JUSTICE ACT--Table of Contents



                      Subpart A_General Provisions

Sec.
2610.101 Definitions.
2610.102 Purpose.
2610.103 When the Act applies.
2610.104 Proceedings covered.
2610.105 Eligibility of applicants.
2610.106 Standards for awards.
2610.107 Allowable fees and expenses.
2610.108 Rulemaking on maximum rate for attorney and agent fees.
2610.109 Awards against other agencies.

             Subpart B_Information Required From Applicants

2610.201 Contents of application.
2610.202 Net worth exhibit.
2610.203 Documentation of fees and expenses.
2610.204 When an application may be filed.

            Subpart C_Procedures for Considering Applications

2610.301 Jurisdiction of adjudicative officer.
2610.302 Filing and service of documents.
2610.303 Answer to application.
2610.304 Reply.
2610.305 Comments by other parties.
2610.306 Settlement.
2610.307 Further proceedings.
2610.308 Decision.
2610.309 Agency review.
2610.310 Judicial review.
2610.311 Payment of award.

    Authority: 5 U.S.C. 504(c)(1); 5 U.S.C. App. (Ethics in Government 
Act of 1978).

    Source: 57 FR 33268, July 28, 1992, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2610.101  Definitions.

    (a) Act means the Equal Access to Justice Act, 5 U.S.C. 504, as 
amended.
    (b) Adjudicative officer means the official, without regard to 
whether the official is designated as a hearing examiner, administrative 
law judge, administrative judge, or otherwise, who presided at the 
adversary adjudication.
    (c) Adversary adjudication means:
    (1) An adjudication under 5 U.S.C. 554 in which the position of the 
United States is represented by counsel or otherwise, but not including 
an adjudication for the purpose of establishing or fixing a rate or for 
the purpose of granting or renewing a license; and
    (2) An appeal of a decision of a contracting officer made pursuant 
to section 6 of the Contracts Disputes Act of 1978 (41 U.S.C. 605) as 
provided in section 8 of that statute (41 U.S.C. 607).
    (d) Agency counsel means:
    (1) When the position of the Office is being represented, the 
attorney or attorneys designated by the Office's General Counsel to 
represent the Office in a proceeding covered by this part; and
    (2) When the position of another agency of the United States is 
being represented, the representative or representatives as designated 
by that agency.
    (e) Office means the United States Office of Government Ethics, or 
the organizational unit within the Office responsible for conducting an 
adversary adjudication subject to this part.
    (f) Proceeding means an adversary adjudication as defined above.
    (g) Director means the Director of the United States Office of 
Government Ethics.



Sec.  2610.102  Purpose.

    The Act provides for the award of attorney fees and other expenses 
to eligible individuals and entities who are parties to certain 
administrative proceedings (``adversary adjudications'') before the 
Office of Government Ethics. An eligible party may receive an award when 
it prevails over the Office,

[[Page 545]]

unless the Office's position in the proceeding was substantially 
justified or special circumstances make an award unjust. An eligible 
party may also receive an award when the demand of the Office is 
substantially in excess of the decision in the adversary adjudication 
and is unreasonable when compared with such decision, under the facts 
and circumstances of the case, unless the party has committed a willful 
violation of law or otherwise acted in bad faith or special 
circumstances make an award unjust. The rules in this part describe the 
parties eligible for awards and the proceedings that are covered. They 
also explain how to apply for awards, and the procedures and standards 
that the Office will use to make them.

[57 FR 33268, July 28, 1992, as amended at 63 FR 13116, Mar. 18, 1998]



Sec.  2610.103  When the Act applies.

    The Act applies to any adversary adjudication pending or commenced 
before the Office of Government Ethics on or after October 1, 1989, 
which is the date the Office became a separate executive agency. Prior 
to October 1, 1989, the Office was part of the Office of Personnel 
Management. Any adversary adjudication pending or commenced before 
October 1, 1989, and not finally disposed of by that date, is governed 
by the rules and policies implementing the Equal Access to Justice Act 
as adopted by the Office of Personnel Management.



Sec.  2610.104  Proceedings covered.

    (a) This part applies to adversary administrative adjudications 
conducted by the Office of Government Ethics. When all other conditions 
in the Act and in these rules are met, the types of proceedings to which 
this part applies are adversary administrative adjudications conducted 
by the Office under:
    (1) The Debt Collection Act of 1982, 5 U.S.C. 5514;
    (2) The Contract Disputes Act of 1978, 41 U.S.C. 605, 607;
    (3) The Ethics in Government Act of 1978, section 402(f)(2), 5 
U.S.C. app., and subpart E of part 2638 of this chapter.
    (b) The Office's failure to identify a type of proceeding as an 
adversary adjudication shall not preclude the filing of an application 
by a party who believes the proceeding is covered by the Act; whether 
the proceeding is covered will then be an issue for resolution in the 
proceedings on the application.
    (c) If a proceeding includes both matters covered by the Act and 
matters specifically excluded from coverage, any award made will include 
only fees and expenses related to covered matters.



Sec.  2610.105  Eligibility of applicants.

    (a) To be eligible for an award of attorney fees and other expenses 
under the Act, the applicant must be a party to the adversary 
adjudication for which it seeks an award. The term ``party'' is defined 
in 5 U.S.C. 551(3). The applicant must show that it meets all conditions 
of eligibility set out in this subpart and in subpart B of this part.
    (b) The types of eligible applicants are as follows:
    (1) An individual with a net worth of not more than $2,000,000;
    (2) The sole owner of an unincorporated business who has a net worth 
of not more than $7,000,000, including both personal and business 
interests, and not more than 500 employees;
    (3) A charitable or other tax-exempt organization described in 
section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. 501(c)(3), 
with not more than 500 employees;
    (4) A cooperative association as defined in section 15(a) of the 
Agricultural Marketing Act, 12 U.S.C. 1141j(a), with not more than 500 
employees;
    (5) Any other partnership, corporation, association, unit of local 
government, or organization with a net worth of not more than $7,000,000 
and not more than 500 employees; and
    (6) For purposes of Sec.  2610.106(b), a small entity as defined in 
5 U.S.C. 601.
    (c) For the purpose of eligibility, the net worth and number of 
employees of an applicant shall be determined as of the date the 
underlying proceeding was initiated. For appeals of decisions of 
contracting officers made pursuant to section 6 of the Contracts 
Disputes Act of 1978, the net worth and number of employees of an 
applicant shall be determined as of the date the applicant filed its 
appeal under 41 U.S.C. 606.

[[Page 546]]

    (d) An applicant who owns an unincorporated business will be 
considered as an ``individual'' rather than a ``sole owner of an 
unincorporated business'' if the issues on which the applicant prevails 
are related primarily to personal interests rather than to business 
interests.
    (e) The employees of an applicant include all persons who regularly 
perform services for remuneration for the applicant, under the 
applicant's direction and control. Part-time employees shall be included 
on a proportional basis.
    (f) The net worth and number of employees of the applicant and all 
of its affiliates shall be aggregated to determine eligibility. An 
individual, corporation or other entity that directly or indirectly 
controls or owns a majority of the voting shares or other interests of 
the applicant, or any corporation or other entity of which the applicant 
directly or indirectly owns or controls a majority of the voting shares 
or other interest, will be considered an affiliate for purposes of this 
part, unless the adjudicative officer determines that such treatment 
would be unjust and contrary to the purposes of the Act in light of the 
actual relationship between the affiliated entities. In addition, the 
adjudicative officer may determine that financial relationships of the 
applicant other than those described in this paragraph constitute 
special circumstances that would make an award unjust.
    (g) An applicant that participates in a proceeding primarily on 
behalf of one or more other persons or entities that would be ineligible 
is not itself eligible for an award.

[57 FR 33268, July 28, 1992, as amended at 63 FR 13116, Mar. 18, 1998]



Sec.  2610.106  Standards for awards.

    (a) A prevailing applicant may receive an award for fees and 
expenses incurred in connection with a proceeding or in a significant 
and discrete substantive portion of the proceeding, unless the position 
of the Office was substantially justified. The position of the Office 
includes, in addition to the position taken by the Office in the 
adversary adjudication, the action or failure to act by the Office upon 
which the adversary adjudication is based. The burden of proof that an 
award should not be made to an eligible prevailing applicant because the 
Office's position was substantially justified is on the Office. No 
presumption arises that the Office's position was not substantially 
justified simply because the Office did not prevail.
    (b) If, in a proceeding arising from an Office action to enforce an 
applicant's compliance with a statutory or regulatory requirement, the 
demand of the Office is substantially in excess of the decision in the 
proceeding and is unreasonable when compared with that decision under 
the facts and circumstances of the case, the applicant shall be awarded 
the fees and other expenses related to defending against the excessive 
demand, unless the applicant has committed a willful violation of law or 
otherwise acted in bad faith or special circumstances make an award 
unjust. The burden of proof that the demand of the Office is 
substantially in excess of the decision and is unreasonable when 
compared with such decision is on the applicant. As used in this 
paragraph, ``demand'' means the express demand of the Office which led 
to the adversary adjudication, but it does not include a recitation by 
the Office of the maximum statutory penalty in the administrative 
complaint, or elsewhere when accompanied by an express demand for a 
lesser amount. Fees and expenses awarded under this paragraph shall be 
paid only as a consequence of appropriations provided in advance.
    (c) Awards for fees and expenses incurred before the date on which a 
proceeding was initiated will be made only if the applicant can 
demonstrate that they were reasonably incurred in preparation for the 
proceeding.
    (d) An award under this part will be reduced or denied if the 
Office's position was substantially justified in law and fact, if the 
applicant has unduly or unreasonably protracted the proceeding, if the 
applicant has falsified the application (including documentation) or net 
worth exhibit, or if special circumstances make the award unjust.

[57 FR 33268, July 28, 1992, as amended at 60 FR 38666, July 28, 1995; 
63 FR 13116, Mar. 18, 1998]

[[Page 547]]



Sec.  2610.107  Allowable fees and expenses.

    (a) Awards will be based on rates customarily charged by persons 
engaged in the business of acting as attorneys, agents and expert 
witnesses, even if the services were made available without charge or at 
reduced rate to the applicant.
    (b) Except as provided in Sec.  2610.108, no award for the fee of an 
attorney or agent under these rules may exceed $125.00 per hour. No 
award to compensate an expert witness may exceed the highest rate at 
which the Office pays expert witnesses. However, an award may also 
include the reasonable expenses of the attorney, agency, or witness as a 
separate item, if the attorney, agent or witness ordinarily charges 
clients separately for such expenses.
    (c) In determining the reasonableness of the fee sought for an 
attorney, agent or expert witness, the adjudicative officer shall 
consider the following:
    (1) If the attorney, agent or witness is in private practice, his or 
her customary fees for similar services, or, if an employee of the 
applicant, the fully allocated costs of the services;
    (2) The prevailing rate for similar services in the community in 
which the attorney, agent or witness ordinarily performs services;
    (3) The time actually spent in the representation of the applicant;
    (4) The time reasonably spent in light of the difficulty or 
complexity of the issues in the proceeding; and
    (5) Such other factors as may bear on the value of the services 
provided.
    (d) The reasonable cost of any study, analysis, engineering report, 
test, project or similar matter prepared on behalf of a party may be 
awarded, to the extent that the charge for the services does not exceed 
the prevailing rate for similar services, and the study or other matter 
was necessary for preparation of applicant's case.

[57 FR 33268, July 28, 1992, as amended at 63 FR 13116, Mar. 18, 1998]



Sec.  2610.108  Rulemaking on maximum rate for attorney and agent fees.

    (a) If warranted by an increase in the cost of living or by special 
circumstances (such as limited availability of attorneys or agents 
qualified to handle certain types of proceedings), the Office may adopt 
regulations providing that attorney or agent fees may be awarded at a 
rate higher than $125.00 per hour in some or all of the types of 
proceedings covered by this part. The Office will conduct any rulemaking 
proceedings for this purpose under the informal rulemaking procedures of 
the Administrative Procedure Act, 5 U.S.C. 553.
    (b) Any person may file with the Office a petition for rulemaking to 
increase the maximum rate for attorney or agent fees as provided in 5 
U.S.C. 504(b)(1)(A)(ii). The petition should identify the rate the 
petitioner believes the Office should establish and the types of 
proceedings in which the rate should be used. It should also explain 
fully the reasons why the higher rate is warranted. The Office will 
respond to the petition within 60 days after it is filed, by initiating 
a rulemaking proceeding, denying the petition, or taking other 
appropriate action.

[57 FR 33268, July 28, 1992, as amended at 63 FR 13116, Mar. 18, 1998]



Sec.  2610.109  Awards against other agencies.

    If an applicant is entitled to an award because it prevails over 
another agency of the United States that participates in a proceeding 
before the Office of Government Ethics and takes a position that is not 
substantially justified, the award or an appropriate portion of the 
award shall be made against that agency.



             Subpart B_Information Required From Applicants



Sec.  2610.201  Contents of application.

    (a) An application for an award of fees and expenses under the Act 
shall identify the applicant and the proceeding for which an award is 
sought. Unless the applicant is an individual, the application shall 
further state the number of employees of the applicant and describe 
briefly the type and purpose of its organization or business. The 
application shall also:

[[Page 548]]

    (1) Show that the applicant has prevailed and identify the position 
of the Office in the proceeding that the applicant alleges was not 
substantially justified; or
    (2) Show that the demand by the Office in the proceeding was 
substantially in excess of, and was unreasonable when compared with, the 
decision in the proceeding.
    (b) The application shall also include, for purposes of Sec.  
2610.106 (a) or (b), a statement that the applicant's net worth does not 
exceed $2,000,000 (for individuals) or $7,000,000 (for all other 
applicants, including their affiliates) or alternatively, for purposes 
of Sec.  2610.106(b) only, a declaration that the applicant is a small 
entity as defined in 5 U.S.C. 601. However, an applicant may omit the 
statement concerning its net worth if:
    (1) It attaches a copy of a ruling by the Internal Revenue Service 
that it qualifies as an organization described in section 501(c)(3) of 
the Internal Revenue Code (26 U.S.C. 501(c)(3)) or, in the case of a 
tax-exempt organization not required to obtain a ruling from the 
Internal Revenue Service on its exempt status, a statement that 
describes the basis for the applicant's belief that it qualifies under 
such section; or
    (2) It states that it is a cooperative association as defined in 
section 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a)).
    (c) The application shall state the amount of fees and expenses for 
which an award is sought.
    (d) The application may also include any other matters that the 
applicant wishes the Office to consider in determining whether and in 
what amount an award should be made.
    (e) The application shall be signed by the applicant or an 
authorized officer or attorney of the applicant. It shall also contain 
or be accompanied by a written verification made by the applicant or 
authorized officer or attorney of the applicant under oath or under 
penalty of perjury that the information provided in the application is 
true and correct.
    (f) These collections of information are not subject to Office of 
Management and Budget review under the Paperwork Reduction Act (44 
U.S.C. chapter 35) because they are expected to involve nine or fewer 
persons each year.

[57 FR 33268, July 28, 1992, as amended at 59 FR 34755, July 7, 1994; 63 
FR 13116, Mar. 18, 1998]



Sec.  2610.202  Net worth exhibit.

    (a) Each applicant, except a qualified tax-exempt organization or 
cooperative association, must provide with its application a detailed 
exhibit showing the net worth of the applicant and any affiliates (as 
defined in Sec.  2610.105(f)) when the underlying adversary adjudication 
was initiated. The exhibit may be in any form convenient to the 
applicant that provides full disclosure of the applicant's and its 
affiliates' assets and liabilities and is sufficient to determine 
whether the applicant qualifies under the standards in this part. The 
adjudicative officer may require an applicant to file additional 
information to determine its eligibility for an award.
    (b) Ordinarily, the net worth exhibit will be included in the public 
record of the proceeding. However, an applicant that objects to public 
disclosure of information in any portion of the exhibit and believes 
there are legal grounds for withholding it from disclosure may submit 
that portion of the exhibit directly to the adjudicative officer in a 
sealed envelope labeled ``Confidential Financial Information,'' 
accompanied by a motion to withhold the information from public 
disclosure. The motion shall describe the information sought to be 
withheld and explain, in detail, why it falls within one or more of the 
specific exemptions from mandatory disclosure under the Freedom of 
Information Act, 5 U.S.C. 552(b)(1)-(9), why public disclosure of the 
information would adversely affect the applicant, and why disclosure is 
not required in the public interest. The material in question shall be 
served on counsel representing the Office, but need not be served on any 
other party to the proceeding, if any. If the adjudicative officer finds 
that the information should not be withheld from disclosure, it shall be 
placed in the public record of the proceeding. Otherwise, any request by 
another party or the public to inspect or copy the exhibit shall be 
resolved in accordance with

[[Page 549]]

the Office of Government Ethics' established procedures under the 
Freedom of Information Act.



Sec.  2610.203  Documentation of fees and expenses.

    The application shall be accompanied by full and itemized 
documentation of the fees and expenses, including the cost of any study, 
analysis, engineering report, test, project or similar matter, for which 
an award is sought. A separate itemized statement shall be submitted for 
each professional firm or individual whose services are covered by the 
application, showing the hours spent in connection with the proceeding 
by each individual, a description of the specific services performed, 
the rates at which each fee has been computed, any expenses for which 
reimbursement is sought, the total amount claimed, and the total amount 
paid or payable by the applicant or by any other person or entity for 
the services provided. The adjudicative officer may require the 
applicant to provide vouchers, receipts, logs, or other documentation 
for any fees or expenses claimed, pursuant to Sec.  2610.306.



Sec.  2610.204  When an application may be filed.

    (a) An application may be filed whenever the applicant has prevailed 
in the proceeding or in a significant and discrete substantive portion 
of the proceeding. An application may also be filed when the demand of 
the Office is substantially in excess of the decision in the proceeding 
and is unreasonable when compared with such decision. In no case may an 
application be filed later than 30 days after the Office of Government 
Ethics' final disposition of the proceeding.
    (b) For purposes of this rule, final disposition means the date on 
which a decision or order disposing of the merits of the proceeding or 
any other complete resolution of the proceeding, such as a settlement or 
voluntary dismissal, becomes final and unappealable, both within the 
Office and to the courts.
    (c) If review or reconsideration is sought or taken of a decision as 
to which an applicant believes it has prevailed or has been subjected to 
a demand from the Office substantially in excess of the decision in the 
adversary adjudication and unreasonable when compared to that decision, 
proceedings for the award of fees shall be stayed pending final 
disposition of the underlying controversy. When the United States 
appeals the underlying merits of an adversary adjudication to a court, 
no decision on an application for fees and other expenses in connection 
with that adversary adjudication shall be made until a final and 
unreviewable decision is rendered by the court on the appeal or until 
the underlying merits of the case have been finally determined pursuant 
to the appeal.

[57 FR 33268, July 28, 1992, as amended at 63 FR 13116, Mar. 18, 1998]



            Subpart C_Procedures for Considering Applications



Sec.  2610.301  Jurisdiction of adjudicative officer.

    Any provision in the Office's rules and regulations other than this 
part which limits or terminates the jurisdiction of an adjudicative 
officer upon the effective date of his or her decision in the underlying 
proceeding shall not in any way affect his or her jurisdiction to render 
a decision under this part.



Sec.  2610.302  Filing and service of documents.

    Any application for an award or other pleading or document related 
to an application shall be filed and served on all parties to the 
proceeding in the same manner as other pleadings in the proceeding, 
except as provided in Sec.  2610.202(b) for confidential financial 
information.



Sec.  2610.303  Answer to application.

    (a) Within 30 days after service of an application, counsel 
representing the Office may file an answer to the application. Agency 
counsel may request an extension of time for filing. If agency counsel 
fails to answer or otherwise fails to contest or settle the application 
within the 30-day period, the adjudicative officer, upon a satisfactory

[[Page 550]]

showing of entitlement by the applicant, may make an award for the 
applicant's fees and other expenses under the Act.
    (b) If agency counsel and the applicant believe that the issues in 
the fee application can be settled, they may jointly file a statement of 
their intent to negotiate a settlement. The filing of this statement 
shall extend the time for filing an answer for an additional 30 days, 
and further extensions may be granted for good cause by the adjudicative 
officer upon request by agency counsel and the applicant.
    (c) The answer shall explain in detail any objections to the award 
requested and identify the facts relied on in support of agency 
counsel's position. If the answer is based on any alleged facts not 
already in the record of the proceeding, agency counsel shall include 
with the answer either supporting affidavits or a request for further 
proceedings under Sec.  2610.307.



Sec.  2610.304  Reply.

    Within 15 days after service of an answer, the applicant may file a 
reply. If the reply is based on any alleged facts not already in the 
record of the proceeding, the applicant shall include with the reply 
either supporting affidavits or a request for further proceedings under 
Sec.  2610.307.



Sec.  2610.305  Comments by other parties.

    Any party to a proceeding other than the applicant and agency 
counsel may file comments on an application within 30 days after it is 
served, or on an answer within 15 days after it is served. A commenting 
party may not participate further in proceedings on the application 
unless the adjudicative officer determines that the public interest 
requires such participation in order to permit full exploration of 
matters raised in the comments.



Sec.  2610.306  Settlement.

    The applicant and agency counsel may agree on a proposed settlement 
of the award before final action on the application, either in 
connection with a settlement of the underlying proceeding, or after the 
underlying proceeding has been concluded, in accordance with the 
settlement procedure applicable to the underlying procedure. If an 
eligible prevailing party and agency counsel agree on a proposed 
settlement of an award before an application has been filed, the 
application shall be filed with the proposed settlement.



Sec.  2610.307  Further proceedings.

    (a) Ordinarily, the determination of an award will be made on the 
basis of the written record. However, on request of either the applicant 
or agency counsel, or on his or her own initiative, the adjudicative 
officer may order further proceedings, such as an informal conference, 
oral argument, additional written submissions or, as to issues other 
than substantial justification (such as the applicant's eligibility or 
substantiation of fees and expenses), pertinent discovery or an 
evidentiary hearing. Such further proceedings shall be held only when 
necessary for full and fair resolution of the issues arising from the 
application, and shall be conducted as promptly as possible. Whether or 
not the position of the Office was substantially justified shall be 
determined on the basis of the administrative record, as a whole, which 
is made in the adversary adjudication for which fees and other expenses 
are sought.
    (b) A request that the adjudicative officer order further 
proceedings under this section shall specifically identify the 
information sought or the disputed issues and shall explain why the 
additional proceedings are necessary to resolve the issues.



Sec.  2610.308  Decision.

    The adjudicative officer shall issue an initial decision on the 
application within 30 days after completion of proceedings on the 
application. The decision shall include written findings and conclusions 
on the applicant's eligibility and status as a prevailing party, and an 
explanation of the reasons for any difference between the amount 
requested and the amount awarded. The decision shall also include, if at 
issue, findings on whether the Office's position was substantially 
justified, whether the applicant unduly protracted the proceedings, or 
whether special circumstances make an award unjust. If the applicant has 
sought an award

[[Page 551]]

against more than one agency, the decision shall allocate responsibility 
for payment of any award made among the agencies, and shall explain the 
reasons for the allocation made.



Sec.  2610.309  Agency review.

    Within 30 days after issuance of an initial decision under this 
part, either the applicant or agency counsel may seek review of the 
initial decision on the fee application, or the Director (or his or her 
designee) may decide to review the initial decision on his or her own 
initiative, in accordance with the Office's review or appeal procedures 
applicable to the underlying proceeding. If neither the applicant nor 
agency counsel seeks review and the Director (or designee) does not take 
review on his or her own initiative, the initial decision on the 
application shall become a final decision of the Office of Government 
Ethics 30 days after it is issued. Whether to review a decision is a 
matter within the discretion of the Director (or his or her designee, if 
any). If review is taken, the Office will issue a final decision on the 
application or remand the application to the adjudicative officer for 
further proceedings.



Sec.  2610.310  Judicial review.

    Judicial review of final agency decisions on awards may be sought as 
provided in 5 U.S.C. 504(c)(2).



Sec.  2610.311  Payment of award.

    An applicant seeking payment of an award shall submit a copy of the 
Office's final decision granting the award, accompanied by a 
certification that the applicant will not seek review of the decision in 
the United States courts, to the Associate Director for Administration, 
Office of Government Ethics, Suite 500, 1201 New York Avenue NW., 
Washington, DC 20005-3917. The Office will pay the amount awarded to the 
applicant within 60 days, unless judicial review of the award or of the 
underlying decision of the adversary adjudication has been sought by the 
applicant, the Office, or any other party to the proceedings.

[[Page 552]]



                     SUBCHAPTER B_GOVERNMENT ETHICS





PART 2634_EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, 
AND CERTIFICATES OF DIVESTITURE--Table of Contents



                      Subpart A_General Provisions

Sec.
2634.101 Authority.
2634.102 Purpose and overview.
2634.103 Executive agency supplemental regulations.
2634.104 Policies.
2634.105 Definitions.

 Subpart B_Persons Required To File Public Financial Disclosure Reports

2634.201 General requirements, filing dates, and extensions.
2634.202 Public filer defined.
2634.203 Persons excluded by rule.
2634.204 Employment of sixty days or less.
2634.205 Special waiver of public reporting requirements.

                  Subpart C_Contents of Public Reports

2634.301 Interests in property.
2634.302 Income.
2634.303 Purchases, sales, and exchanges.
2634.304 Gifts and reimbursements.
2634.305 Liabilities.
2634.306 Agreements and arrangements.
2634.307 Outside positions.
2634.308 Filer's sources of compensation exceeding $5,000 in a year.
2634.309 Periodic reporting of transactions.
2634.310 Reporting periods.
2634.311 Spouses and dependent children.
2634.312 Trusts, estates, and investment funds.
2634.313 Special rules.

                       Subpart D_Qualified Trusts

2634.401 Overview.
2634.402 Definitions.
2634.403 General description of trusts.
2634.404 Summary of procedures for creation of a qualified trust.
2634.405 Standards for becoming an independent trustee or other 
          fiduciary.
2634.406 Initial portfolio.
2634.407 Certification of qualified trust by the Office of Government 
          Ethics.
2634.408 Administration of a qualified trust.
2634.409 Pre-existing trusts.
2634.410 Dissolution.
2634.411 Reporting on financial disclosure reports.
2634.412 Sanctions and enforcement.
2634.413 Public access.
2634.414 OMB control number.

    Subpart E_Revocation of Trust Certificates and Trustee Approvals

2634.501 Purpose and scope.
2634.502 Definitions.
2634.503 Determinations.

                           Subpart F_Procedure

2634.601 Report forms.
2634.602 Filing of reports.
2634.603 Custody of and access to public reports.
2634.604 Custody of and denial of public access to confidential reports.
2634.605 Review of reports.
2634.606 Updated disclosure of advice-and-consent nominees.
2634.607 Advice and opinions.

                           Subpart G_Penalties

2634.701 Failure to file or falsifying reports.
2634.702 Breaches by trust fiduciaries and interested parties.
2634.703 Misuse of public reports.
2634.704 Late filing fee.

                       Subpart H_Ethics Agreements

2634.801 Scope.
2634.802 Requirements.
2634.803 Notification of ethics agreements.
2634.804 Evidence of compliance.
2634.805 Retention.

           Subpart I_Confidential Financial Disclosure Reports

2634.901 Policies of confidential financial disclosure reporting.
2634.902 [Reserved]
2634.903 General requirements, filing dates, and extensions.
2634.904 Confidential filer defined.
2634.905 Use of alternative procedures.
2634.906 Review of confidential filer status.
2634.907 Report contents.
2634.908 Reporting periods.
2634.909 Procedures, penalties, and ethics agreements.

                  Subpart J_Certificates of Divestiture

2634.1001 Overview.
2634.1002 Role of the Internal Revenue Service.
2634.1003 Definitions.
2634.1004 General rule.
2634.1005 How to obtain a Certificate of Divestiture.
2634.1006 Rollover into permitted property.

[[Page 553]]

2634.1007 Cases in which Certificates of Divestiture will not be issued.
2634.1008 Public access to a Certificate of Divestiture.

    Authority: 5 U.S.C. app.; 26 U.S.C. 1043; Pub. L. 101-410, 104 Stat. 
890, 28 U.S.C. 2461 note, as amended by Sec. 31001, Pub. L. 104-134, 110 
Stat. 1321 and Sec. 701, Pub. L. 114-74; Pub. L. 112-105, 126 Stat. 291; 
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: 83 FR 33981, July 18, 2018, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2634.101  Authority.

    The regulation in this part is issued pursuant to the authority of 
the Ethics in Government Act of 1978, as amended; 26 U.S.C. 1043; the 
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by 
the Debt Collection Improvement Act of 1996 and the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015; the Stop 
Trading on Congressional Knowledge Act (STOCK Act), as amended; and 
Executive Order 12674 of April 12, 1989, as modified by Executive Order 
12731 of October 17, 1990.



Sec.  2634.102  Purpose and overview.

    (a) The regulation in this part supplements and implements title I 
of the Act, sections 8(a)-(b) and 11 of the STOCK Act, and section 
201(d) of Executive Order 12674 (as modified by Executive Order 12731) 
with respect to executive branch employees, by setting forth more 
specifically the uniform procedures and requirements for financial 
disclosure and for the certification and use of qualified blind and 
diversified trusts. Additionally, this part implements section 502 of 
the Reform Act by establishing procedures for executive branch personnel 
to obtain Certificates of Divestiture, which permit deferred recognition 
of capital gain in certain instances.
    (b) The rules in this part govern both public and confidential 
(nonpublic) financial disclosure systems. Subpart I of this part 
contains the rules applicable to the confidential disclosure system.



Sec.  2634.103  Executive agency supplemental regulations.

    (a) The regulation in this part is intended to provide uniformity 
for executive branch financial disclosure systems. However, an agency 
may, subject to the prior written approval of the Office of Government 
Ethics (OGE), issue supplemental regulations implementing this part, if 
necessary to address special or unique agency circumstances. Such 
regulations:
    (1) Must be consistent with the Act, the STOCK Act, Executive Orders 
12674 and 12731, and this part; and
    (2) Must not impose additional reporting requirements on either 
public or confidential filers, unless specifically authorized by the 
Office of Government Ethics as supplemental confidential reporting.

    Note to paragraph (a): Supplemental regulations will not be used to 
satisfy the separate requirement of 5 U.S.C. app. (Ethics in Government 
Act of 1978, section 402(d)(1)) that each agency have established 
written procedures on how to collect, review, evaluate, and, where 
appropriate, make publicly available, financial disclosure statements 
filed with it.

    (b) Requests for approval of supplemental regulations under 
paragraph (a) of this section must be submitted in writing to the Office 
of Government Ethics, and must set forth the agency's need for any 
proposed supplemental reporting requirements. See Sec.  2634.901(b) and 
(c).
    (c) Agencies should review all of their existing financial 
disclosure regulations to determine which of those regulations must be 
modified or revoked in order to conform with the requirements of this 
part. Any amendatory agency regulations will be processed in accordance 
with paragraphs (a) and (b) of this section.



Sec.  2634.104  Policies.

    (a) Title I of the Act requires that high-level Federal officials 
disclose publicly their personal financial interests, to ensure 
confidence in the integrity of the Federal Government by demonstrating 
that they are able to

[[Page 554]]

carry out their duties without compromising the public trust. Title I 
also authorizes the Office of Government Ethics to establish a 
confidential (nonpublic) financial disclosure system for less senior 
executive branch personnel in certain designated positions, to 
facilitate internal agency conflict-of-interest review.
    (b) Public and confidential financial disclosure serves to prevent 
conflicts of interest and to identify potential conflicts, by providing 
for a systematic review of the financial interests of both current and 
prospective officers and employees. These reports assist agencies in 
administering their ethics programs and providing counseling to 
employees.
    (c) Financial disclosure reports are not net worth statements. 
Financial disclosure systems seek only the information that the 
President, Congress, or OGE as the supervising ethics office for the 
executive branch has deemed relevant to the administration and 
application of the criminal conflict of interest laws, other statutes on 
ethical conduct or financial interests, and Executive orders or 
regulations on standards of ethical conduct.
    (d) Nothing in the Act, the STOCK Act, or this part requiring 
reporting of information or the filing of any report will be deemed to 
authorize receipt of income, honoraria, gifts, or reimbursements; 
holding of assets, liabilities, or positions; or involvement in 
transactions that are prohibited by law, Executive order, or regulation.
    (e) The provisions of title I of the Act, the STOCK Act, and this 
part requiring the reporting of information supersede any general 
requirement under any other provision of law or regulation on the 
reporting of information required for purposes of preventing conflicts 
of interest or apparent conflicts of interest. However, the provisions 
of title I and this part do not supersede the requirements of 5 U.S.C. 
7342 (the Foreign Gifts and Decorations Act).
    (f) This part is intended to be gender-neutral; therefore, use of 
the terms he, his, and him include she, hers, and her, and vice versa.



Sec.  2634.105  Definitions.

    For purposes of this part:
    (a) Act means the Ethics in Government Act of 1978 (Pub. L. 95-521), 
as amended, as modified by the Ethics Reform Act of 1989 (Pub. L. 101-
194), as amended.
    (b) Agency means any executive agency as defined in 5 U.S.C. 105 
(any executive department, Government corporation, or independent 
establishment in the executive branch), any military department as 
defined in 5 U.S.C. 102, and the Postal Service and the Postal 
Regulatory Commission. It does not include the Government Accountability 
Office.
    (c) Confidential filer. For the definition of ``confidential 
filer,'' see Sec.  2634.904.
    (d) Dependent child means, when used with respect to any reporting 
individual, any individual who is a son, daughter, stepson, or 
stepdaughter and who:
    (1) Is unmarried, under age 21, and living in the household of the 
reporting individual; or
    (2) Is a dependent of the reporting individual within the meaning of 
section 152 of the Internal Revenue Code of 1986, see 26 U.S.C. 152.
    (e) Designated agency ethics official means the primary officer or 
employee who is designated by the head of an agency to administer the 
provisions of title I of the Act and this part within an agency, and in 
the designated agency ethics official's absence the alternate who is 
designated by the head of the agency. The term also includes a delegate 
of such an official, unless otherwise indicated. See part 2638 of this 
chapter on the appointment and additional responsibilities of a 
designated agency ethics official and alternate.
    (f) Executive branch means any agency as defined in paragraph (b) of 
this section and any other entity or administrative unit in the 
executive branch.
    (g) Filer is used interchangeably with ``reporting individual,'' and 
may refer to a ``confidential filer'' as defined in paragraph (c) of 
this section, a ``public filer'' as defined in paragraph (m) of this 
section, or a nominee or candidate as described in Sec.  2634.201.
    (h) Gift means a payment, advance, forbearance, rendering, free 
attendance

[[Page 555]]

at an event, deposit of money, or anything of value, unless 
consideration of equal or greater value is received by the donor, but 
does not include:
    (1) Bequests and other forms of inheritance;
    (2) Suitable mementos of a function honoring the reporting 
individual;
    (3) Food, lodging, transportation, and entertainment provided by a 
foreign government within a foreign country or by the United States 
Government, the District of Columbia, or a State or local government or 
political subdivision thereof;
    (4) Food and beverages, unless they are consumed in connection with 
a gift of overnight lodging;
    (5) Communications to the offices of a reporting individual, 
including subscriptions to newspapers and periodicals;
    (6) Consumable products provided by home-state businesses to the 
offices of the President or Vice President, if those products are 
intended for consumption by persons other than the President or Vice 
President; or
    (7) Exclusions and exceptions as described at Sec.  2634.304(c) and 
(d).
    (i) Honorarium means a payment of money or anything of value for an 
appearance, speech, or article.
    (j) Income means all income from whatever source derived. It 
includes but is not limited to the following items: Earned income such 
as compensation for services, fees, commissions, salaries, wages, and 
similar items; gross income derived from business (and net income if the 
individual elects to include it); gains derived from dealings in 
property including capital gains; interest; rents; royalties; dividends; 
annuities; income from the investment portion of life insurance and 
endowment contracts; pensions; income from discharge of indebtedness; 
distributive share of partnership income; and income from an interest in 
an estate or trust. The term includes all income items, regardless of 
whether they are taxable for Federal income tax purposes, such as 
interest on municipal bonds. Generally, income means ``gross income'' as 
determined in conformity with the Internal Revenue Service principles at 
26 CFR 1.61-1 through 1.61-15 and 1.61-21.
    (k) Personal hospitality of any individual means hospitality 
extended for a nonbusiness purpose by an individual, not a corporation 
or organization, at the personal residence of or on property or 
facilities owned by that individual or the individual's family.
    (l) Personal residence means any property used exclusively as a 
private dwelling by the reporting individual or his spouse, which is not 
rented out during any portion of the reporting period. The term is not 
limited to one's domicile; there may be more than one personal 
residence, including a vacation home.
    (m) Public filer. For the definition of ``public filer,'' see Sec.  
2634.202.
    (n) Reimbursement means any payment or other thing of value received 
by the reporting individual (other than gifts, as defined in paragraph 
(h) of this section) to cover travel-related expenses of such 
individual, other than those which are:
    (1) Provided by the United States Government, the District of 
Columbia, or a State or local government or political subdivision 
thereof;
    (2) Required to be reported by the reporting individual under 5 
U.S.C. 7342 (the Foreign Gifts and Decorations Act); or
    (3) Required to be reported under section 304 of the Federal 
Election Campaign Act of 1971 (52 U.S.C. 30104) (relating to reports of 
campaign contributions).

    Note to paragraph (n): Payments which are not made to the individual 
are not reimbursements for purposes of this part. Thus, payments made to 
the filer's employing agency to cover official travel-related expenses 
do not fit this definition of reimbursement. For example, payments being 
accepted by the agency pursuant to statutory authority such as 31 U.S.C. 
1353, as implemented by 41 CFR part 304-1, are not considered 
reimbursements under this part, because they are not payments received 
by the reporting individual. On the other hand, travel payments made to 
the employee by an outside entity for private travel are considered 
reimbursements for purposes of this part. Likewise, travel payments 
received from certain nonprofit entities under authority of 5 U.S.C. 
4111 are considered reimbursements, even though for official travel, 
since that statute specifies that such payments must be made to the 
individual directly (with prior approval from the individual's agency).


[[Page 556]]


    (o) Relative means an individual who is related to the reporting 
individual, as father, mother, son, daughter, brother, sister, uncle, 
aunt, great uncle, great aunt, first cousin, nephew, niece, husband, 
wife, grandfather, grandmother, grandson, granddaughter, father-in-law, 
mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-
law, stepfather, stepmother, stepson, stepdaughter, stepbrother, 
stepsister, half-brother, half-sister, or who is the grandfather or 
grandmother of the spouse of the reporting individual, and will be 
deemed to include the fianc[eacute] or fianc[eacute]e of the reporting 
individual.
    (p) Reporting individual is used interchangeably with ``filer,'' and 
may refer to a ``confidential filer'' as defined in Sec.  2634.904, a 
``public filer'' as defined in Sec.  2634.202, or a nominee or candidate 
as described in Sec.  2634.201(c) and (d).
    (q) Reviewing official means the designated agency ethics official 
or the delegate, the Secretary concerned, the head of the agency, or the 
Director of the Office of Government Ethics.
    (r) Secretary concerned has the meaning set forth in 10 U.S.C. 
101(a)(9) (relating to the Secretaries of the Army, Navy, Air Force, and 
for certain Coast Guard matters, the Secretary of Homeland Security); 
and, in addition, means:
    (1) The Secretary of Commerce, in matters concerning the National 
Oceanic and Atmospheric Administration;
    (2) The Secretary of Health and Human Services, with respect to 
matters concerning the Public Health Service; and
    (3) The Secretary of State with respect to matters concerning the 
Foreign Service.
    (s) Special Government employee has the meaning given to that term 
by the first sentence of 18 U.S.C. 202(a): An officer or employee of an 
agency who is retained, designated, appointed, or employed to perform 
temporary duties, with or without compensation, for not to exceed 130 
days during any period of 365 consecutive days, either on a full-time or 
intermittent basis.
    (t) STOCK Act means the Stop Trading on Congressional Knowledge Act 
(Pub. L. 112-105), as amended.
    (u) Value means a good faith estimate of the fair market value if 
the exact value is neither known nor easily obtainable by the reporting 
individual without undue hardship or expense. In the case of any 
interest in property, see the alternative valuation options in Sec.  
2634.301(e). For gifts and reimbursements, see Sec.  2634.304(e).



 Subpart B_Persons Required To File Public Financial Disclosure Reports



Sec.  2634.201  General requirements, filing dates, and extensions.

    (a) Incumbents. A public filer as defined in Sec.  2634.202 who, 
during any calendar year, performs the duties of the position or office, 
as described in that section, for a period in excess of 60 days must 
file a public financial disclosure report containing the information 
prescribed in subpart C of this part, on or before May 15 of the 
succeeding year.

    Example 1: An SES official commences performing the duties of his 
position on November 15. He will not be required to file an incumbent 
report for that calendar year.
    Example 2: An employee, who is classified at GS-15, is formally 
detailed to fill an SES position or is temporarily promoted to fill an 
SES position in an acting capacity, from October 15 through December 31. 
Having performed the duties of a covered position for more than 60 days 
during the calendar year, he will be required to file an incumbent 
report. In addition, he must file a new entrant report the first time he 
serves more than 60 days in a calendar year in the position, in 
accordance with Sec.  2634.201(b) and Sec.  2634.204(c)(1).
    Example 3: An SES employee terminates her employment with an agency 
on March 7, 2015. The employee will file a termination report by April 
6, 2015, in accordance with Sec.  2634.201(e), but will not file an 
incumbent report on May 15.

    (b) New entrants. (1) Within 30 days of assuming a public filer 
position or office described in Sec.  2634.202, an individual must file 
a public financial disclosure report containing the information 
prescribed in subpart C of this part.
    (2) However, no report will be required if the individual:
    (i) Has, within 30 days prior to assuming such position, left 
another position or office for which a public financial disclosure 
report under the Act was required to be filed; or

[[Page 557]]

    (ii) Has already filed such a report as a nominee or candidate for 
the position.

    Example: Y, an employee of the Treasury Department who has 
previously filed reports in accordance with the rules of this section, 
terminates employment with that Department on January 10, 2015, and 
begins employment with the Commerce Department on January 11, 2015, in a 
Senior Executive Service position. Y is not a new entrant because he has 
assumed a position described in Sec.  2634.202 within thirty days of 
leaving another position so described. Accordingly, he need not file a 
new report with the Commerce Department.
    Note to example: While Y did not have to file a new entrant report 
with the Commerce Department, that Department should request a copy of 
the last report which he filed with the Treasury Department, so that 
Commerce could determine whether or not there would be any conflicts or 
potential conflicts in connection with Y's new employment. Additionally, 
Y will have to file an incumbent report covering the 2014 calendar year, 
in accordance with paragraph (a) of this section, due not later than May 
15, 2015, with Commerce, which should provide a copy to Treasury so that 
both may review it.

    (c) Nominees. (1) At any time after a public announcement by the 
President or President-elect of the intention to nominate an individual 
to an executive branch position, appointment to which requires the 
advice and consent of the Senate, such individual may, and in any event 
within five days after the transmittal of the nomination to the Senate 
must, file a public financial disclosure report containing the 
information prescribed in subpart C of this part.
    (2) This requirement will not apply to any individual who is 
nominated to a position as:
    (i) An officer of the uniformed services; or
    (ii) A Foreign Service Officer.

    Note to paragraph (c)(2): Although the statute, 5 U.S.C. app. 
(Ethics in Government Act of 1978, section 101(b)(1)), exempts uniformed 
service officers only if they are nominated for appointment to a grade 
or rank for which the pay grade is 0-6 or below, the Senate confirmation 
committees have adopted a practice of exempting all uniformed service 
officers, unless otherwise specified by the committee assigned.

    (3) Section 2634.605(c) provides expedited procedures in the case of 
individuals described in paragraph (c)(1) of this section. Those 
individuals referred to in paragraph (c)(2) of this section as being 
exempt from filing nominee reports must file new entrant reports, if 
required by paragraph (b) of this section.
    (d) Candidates. A candidate (as defined in section 301 of the 
Federal Election Campaign Act of 1971, 52 U.S.C. 30101) for nomination 
or election to the office of President or Vice President (other than an 
incumbent) must file a public financial disclosure report containing the 
information prescribed in subpart C of this part, in accordance with the 
following:
    (1) Within 30 days of becoming a candidate or on or before May 15 of 
the calendar year in which the individual becomes a candidate, whichever 
is later, but in no event later than 30 days before the election; and
    (2) On or before May 15 of each successive year an individual 
continues to be a candidate. However, in any calendar year in which an 
individual continues to be a candidate but all elections relating to 
such candidacy were held in prior calendar years, the individual need 
not file a report unless the individual becomes a candidate for a 
vacancy during that year.

    Example: P became a candidate for President in January 2015. P will 
be required to file a public financial disclosure report on or before 
May 15, 2015. If P had become a candidate on June 1, 2015, P would have 
been required to file a disclosure report within 30 days of that date.

    (e) Termination of employment. (1) On or before the thirtieth day 
after termination of employment from a public filer position or office 
described in Sec.  2634.202 but no more than 15 days prior to 
termination, an individual must file a public financial disclosure 
report containing the information prescribed in subpart C of this part. 
If the individual files prior to the termination date and there are any 
changes between the filing date and the termination date, the individual 
must update the report.
    (2) However, if within 30 days of such termination the individual 
assumes employment in another position or office for which a public 
report under the Act is required to be filed, no report

[[Page 558]]

will be required by the provisions of this paragraph. See the related 
Example in paragraph (b) of this section.
    (f) Transactions occurring throughout the calendar year. (1) A 
public filer as defined in Sec.  2634.202 who, during any calendar year, 
performs, or is reasonably expected to perform, the duties of his 
position or office, as described in that section, for a period in excess 
of 60 days must file a transaction report within 30 days of receiving 
notification of a covered transaction, but not later than 45 days after 
such transaction. The report must contain the information prescribed in 
subpart C of this part.
    (2) A covered transaction is any purchase, sale, or exchange 
required to be reported according to the provisions of Sec.  2634.309.

    Example: A filer receives a statement on October 10 notifying her of 
all of the covered transactions executed by her broker on her behalf in 
September. Although each transaction may have a different due date, if 
the filer reports all the covered transactions from September on a 
report filed on or before October 15, the filer will ensure that all 
transactions have been timely reported.

    (g) Extensions generally. The reviewing official may, for good cause 
shown, grant to any public filer or class thereof an extension of time 
for filing which must not exceed 45 days. The reviewing official may, 
for good cause shown, grant an additional extension of time which must 
not exceed 45 days. The employee must set forth in writing specific 
reasons why such additional extension of time is necessary. The 
reviewing official must approve or deny such requests in writing. Such 
records must be maintained as part of the official report file. For 
extensions on confidential financial disclosure reports, see Sec.  
2634.903(d).
    (h) Exceptions for individuals in combat zones. In the case of an 
individual who is serving in the Armed Forces, or serving in support of 
the Armed Forces, in an area while that area is designated by the 
President by Executive order as a combat zone for purposes of section 
112 of the Internal Revenue Code of 1986:
    (1) The date for the filing of any report will be extended so that 
the date is 180 days after the later of:
    (i) The last day of the individual's service in such area during 
such designated period; or
    (ii) The last day of the individual's hospitalization as a result of 
injury received or disease contracted while serving in such area; and
    (2) The exception described in this paragraph will apply 
automatically to any individual who qualifies for the exception, unless 
the Secretary of Defense establishes written guidelines for determining 
eligibility or for requesting an extension under this paragraph.



Sec.  2634.202  Public filer defined.

    The term public filer includes:
    (a) The President;
    (b) The Vice President;
    (c) Each officer or employee in the executive branch, including a 
special Government employee as defined in 18 U.S.C. 202(a), whose 
position is classified above GS-15 of the General Schedule prescribed by 
5 U.S.C. 5332, or the rate of basic pay for which is fixed, other than 
under the General Schedule, at a rate equal to or greater than 120% of 
the minimum rate of basic pay for GS-15 of the General Schedule; each 
member of a uniformed service whose pay grade is at or in excess of O-7 
under 37 U.S.C. 201; and each officer or employee in any other position 
determined by the Director of the Office of Government Ethics to be of 
equal classification;
    (d) Each employee who is an administrative law judge appointed 
pursuant to 5 U.S.C. 3105;
    (e) Any employee not otherwise described in paragraph (c) of this 
section who is in a position in the executive branch which is excepted 
from the competitive service by reason of being of a confidential or 
policy-making character, unless excluded by virtue of a determination 
under Sec.  2634.203;
    (f) The Postmaster General, the Deputy Postmaster General, each 
Governor of the Board of Governors of the United States Postal Service 
and each officer or employee of the United States Postal Service or 
Postal Regulatory Commission whose basic rate of pay is equal to or 
greater than 120% of the minimum rate of basic pay for GS-15 of the 
General Schedule;

[[Page 559]]

    (g) The Director of the Office of Government Ethics and each 
agency's designated agency ethics official;
    (h) Any civilian employee not otherwise described in paragraph (c) 
of this section who is employed in the Executive Office of the President 
(other than a special Government employee, as defined in 18 U.S.C. 
202(a)) and holds a commission of appointment from the President; and
    (i) Anyone whose employment in a position or office described in 
paragraphs (a) through (h) of this section has terminated, but who has 
not yet satisfied the filing requirements of Sec.  2634.201(e).



Sec.  2634.203  Persons excluded by rule.

    (a) In general. Any individual or group of individuals described in 
Sec.  2634.202(e) (relating to positions of a confidential or policy-
making character) may be excluded by rule from the public reporting 
requirements of this subpart when the Director of the Office of 
Government Ethics determines, in his sole discretion, that such 
exclusion would not affect adversely the integrity of the Government or 
the public's confidence in the integrity of the Government.
    (b) Exclusion determination for employees at or below the GS-13 
grade level. (1) The determination required by paragraph (a) of this 
section has been made for any individual who, as a factual matter, 
serves in a position that meets the criteria set forth in this 
paragraph. The exclusion applies to a position upon a written 
determination by the designated agency ethics official that the position 
meets the following criteria:
    (i) The position is paid at the GS-13 grade level or below or, in 
the case of a position not under the General Schedule, both the level of 
pay and the nature of responsibilities of the position are commensurate 
with the GS-13 grade level or below; and
    (ii) The incumbent in the position does not have a substantial 
policy-making role with respect to agency programs.
    (2) The designated agency ethics official must consider whether the 
position meets the standards for filing a confidential financial 
disclosure report enumerated in Sec.  2634.904(a)(4).
    (c) Exclusion determination for employees at or below the GS-15 
grade level, but above the GS-13 grade level. The exclusion 
determination required by paragraph (a) of this section may also be made 
on a case-by-case basis by the Office of Government Ethics. To receive 
an exclusion determination, an agency must follow the procedures set 
forth in paragraph (d) of this section and must demonstrate that the 
employee:
    (1) Has a position that has been established at the GS-14 or GS-15 
grade level or, in the case of a position not under the General 
Schedule, both the level of pay and the nature of responsibilities of 
the position are commensurate with the GS-14 or GS-15 grade level; and
    (2) Has no policy-making role with respect to agency programs. In 
the event that the Office of Government Ethics permits the requested 
exclusion, the designated agency ethics official must consider whether 
the position meets the standards for filing a confidential financial 
disclosure report enumerated in Sec.  2634.904(a)(4).
    (d) Procedure. (1) The exclusion of any individual from reporting 
requirements pursuant to paragraph (c) of this section will be effective 
as of the time the employing agency files with the Office of Government 
Ethics the name of the employee, the name of any incumbent in the 
position, and a position description. Exclusions should be requested 
prior to due dates for the reports which such employees would otherwise 
have to file. If the position description changes in a substantive way, 
the employing agency must provide the Office of Government Ethics with a 
revised position description.
    (2) If the Office of Government Ethics finds that one or more 
positions has been improperly excluded, it will advise the agency and 
set a date for the filing of any report that is due.

    Example: An agency requests an exclusion for a special assistant, 
who is a Schedule C appointee whose position description is classified 
at the GS-14 level. The position description indicates that the 
employee's duties involve the analysis of policy options and the 
presentation of findings and recommendations to superiors. On the basis 
of

[[Page 560]]

this position description, the requested exception is denied.



Sec.  2634.204  Employment of sixty days or less.

    (a) In general. Any public filer or nominee who, as determined by 
the official specified in this paragraph, is not reasonably expected to 
perform the duties of an office or position described in Sec.  
2634.201(c) or Sec.  2634.202 for more than 60 days in any calendar year 
will not be subject to the reporting requirements of Sec.  2634.201(b), 
(c), or (e). This determination will be made by:
    (1) The designated agency ethics official or Secretary concerned, in 
a case to which the provisions of Sec.  2634.201(b) or (e) (relating to 
new entrant and termination reports) would otherwise apply; or
    (2) The Director of the Office of Government Ethics, in a case to 
which the provisions of Sec.  2634.201(c) (relating to nominee reports) 
would otherwise apply.
    (b) Alternative reporting. Any new entrant who is exempted from 
filing a public financial report under paragraph (a) of this section and 
who is a special Government employee is subject to confidential 
reporting under Sec.  2634.903(b). See Sec.  2634.904(a)(2).
    (c) Exception. If the public filer or nominee actually performs the 
duties of an office or position referred to in paragraph (a) of this 
section for more than 60 days in a calendar year, the public report 
otherwise required by:
    (1) Section 2634.201(b) or (c) (relating to new entrant and nominee 
reports) must be filed within 15 calendar days after the sixtieth day of 
duty; and
    (2) Section 2634.201(e) (relating to termination reports) must be 
filed as provided in that paragraph.



Sec.  2634.205  Special waiver of public reporting requirements.

    (a) General rule. In unusual circumstances, the Director of the 
Office of Government Ethics may grant a request for a waiver of the 
public reporting requirements under this subpart for an individual who 
is reasonably expected to perform, or has performed, the duties of an 
office or position for fewer than 130 days in a calendar year, but only 
if the Director determines that:
    (1) The individual is a special Government employee, as defined in 
18 U.S.C. 202(a), who performs temporary duties either on a full-time or 
intermittent basis;
    (2) The individual is able to provide services specially needed by 
the Government;
    (3) It is unlikely that the individual's outside employment or 
financial interests will create a conflict of interest; and
    (4) Public financial disclosure by the individual is not necessary 
under the circumstances.
    (b) Procedure. (1) Requests for waivers must be submitted to the 
Office of Government Ethics, via the requester's agency, within 10 days 
after an employee learns that the employee will hold a position which 
requires reporting and that the employee will serve in that position for 
more than 60 days in any calendar year, or upon serving in such a 
position for more than 60 days, whichever is earlier.
    (2) The request must consist of:
    (i) A cover letter which identifies the individual and the position, 
states the approximate number of days in a calendar year which the 
employee expects to serve in that position, and requests a waiver of 
public reporting requirements under this section;
    (ii) An enclosure which states the reasons for the individual's 
belief that the conditions of paragraphs (a)(1) through (4) of this 
section are met in the particular case; and
    (iii) The report otherwise required by this subpart, as a factual 
basis for the determination required by this section. The report must 
bear the legend: ``CONFIDENTIAL: WAIVER REQUEST PENDING PURSUANT TO 5 
CFR 2634.205.''
    (3) The agency in which the individual serves must advise the Office 
of Government Ethics as to the justification for a waiver.
    (4) In the event a waiver is granted, the report will not be subject 
to the public disclosure requirements of Sec.  2634.603; however, the 
waiver request cover letter will be subject to those requirements. In 
the event that a waiver is not granted, the confidential legend

[[Page 561]]

will be removed from the report, and the report will be subject to 
public disclosure; however, the waiver request cover letter will not 
then be subject to public disclosure.



                  Subpart C_Contents of Public Reports



Sec.  2634.301  Interests in property.

    (a) In general. Except reports required under Sec.  2634.201(f), 
each financial disclosure report filed pursuant to this subpart must 
include a brief description of any interest in property held by the 
filer at the end of the reporting period in a trade or business, or for 
investment or the production of income, having a fair market value in 
excess of $1,000. The report must designate the category of value of the 
property in accordance with paragraph (d) of this section. Each item of 
real and personal property must be disclosed separately. Note that for 
Individual Retirement Accounts (IRAs), defined contribution plans, 
brokerage accounts, trusts, mutual or pooled investment funds and other 
entities with portfolio holdings, each underlying asset must be 
separately disclosed, unless the entity qualifies for special treatment 
under Sec.  2634.312.
    (b) Types of property reportable. Subject to the exceptions in 
paragraph (c) of this section, examples of the types of property 
required to be reported include, but are not limited to:
    (1) Real estate;
    (2) Stocks, bonds, securities, and futures contracts;
    (3) Mutual funds, exchange-traded funds, and other pooled investment 
funds;
    (4) Pensions and annuities;
    (5) Vested beneficial interests in trusts;
    (6) Ownership interests in businesses or partnerships;
    (7) Deposits in banks or other financial institutions; and
    (8) Accounts receivable.
    (c) Exceptions. The following property interests are exempt from the 
reporting requirements under paragraphs (a) and (b) of this section:
    (1) Any personal liability owed to the filer, spouse, or dependent 
child by a spouse, or by a parent, brother, sister, or child of the 
filer, spouse, or dependent child;
    (2) Personal savings accounts (defined as any form of deposit in a 
bank, savings and loan association, credit union, or similar financial 
institution) in a single financial institution or holdings in a single 
money market mutual fund, aggregating $5,000 or less in that institution 
or fund;
    (3) A personal residence of the filer or spouse, as defined in Sec.  
2634.105(l); and
    (4) Financial interests in any retirement system of the United 
States (including the Thrift Savings Plan) or under the Social Security 
Act.
    (d) Valuation categories. The valuation categories specified for 
property items are as follows:
    (1) None (or less than $1,001);
    (2) $1,001 but not more than $15,000;
    (3) Greater than $15,000 but not more than $50,000;
    (4) Greater than $50,000 but not more than $100,000;
    (5) Greater than $100,000 but not more than $250,000;
    (6) Greater than $250,000 but not more than $500,000;
    (7) Greater than $500,000 but not more than $1,000,000; and
    (8) Greater than $1,000,000;
    (9) Provided that, with respect to items held by the filer alone or 
held jointly by the filer with the filer's spouse and/or dependent 
children, the following additional categories over $1,000,000 will 
apply:
    (i) Greater than $1,000,000 but not more than $5,000,000;
    (ii) Greater than $5,000,000 but not more than $25,000,000;
    (iii) Greater than $25,000,000 but not more than $50,000,000; and
    (iv) Greater than $50,000,000.
    (e) Valuation of interests in property. A good faith estimate of the 
fair market value of interests in property may be made in any case in 
which the exact value cannot be obtained without undue hardship or 
expense to the filer. If a filer is unable to make a good faith estimate 
of the value of an asset, the filer may indicate on the report that the 
``value is not readily ascertainable.'' Value may also be determined by:

[[Page 562]]

    (1) The purchase price (in which case, the filer should indicate 
date of purchase);
    (2) Recent appraisal;
    (3) The assessed value for tax purposes (adjusted to reflect the 
market value of the property used for the assessment if the assessed 
value is computed at less than 100 percent of that market value);
    (4) The year-end book value of nonpublicly traded stock, the year-
end exchange value of corporate stock, or the face value of corporate 
bonds or comparable securities;
    (5) The net worth of a business partnership;
    (6) The equity value of an individually owned business; or
    (7) Any other recognized indication of value (such as the last sale 
on a stock exchange).

    Example 1: An official has a $4,000 savings account in Bank A. The 
filer's spouse has a $2,500 certificate of deposit issued by Bank B and 
his dependent daughter has a $200 savings account in Bank C. The 
official does not have to disclose the deposits, as the total value of 
the deposits in any one bank does not exceed $5,000.
    Example 2: Public filer R has a collection of post-impressionist 
paintings which have been carefully selected over the years. From time 
to time, as new paintings have been acquired to add to the collection, R 
has made sales of both less desirable works from his collection and 
paintings of various schools which he acquired through inheritance. 
Under these circumstances, R must report the value of all the paintings 
he retains as interests in property pursuant to this section, as well as 
income from the sales of paintings pursuant to Sec.  2634.302(b). 
Recurrent sales from a collection indicate that the collection is being 
held for investment or the production of income.
    Example 3: A reporting individual has investments which her broker 
holds as an IRA and invests in stocks, bonds, and mutual funds. Each 
such asset having a value in excess of $1,000 at the close of the 
reporting period must be separately listed, and the value must be shown.



Sec.  2634.302  Income.

    (a) Noninvestment income. Except reports required under Sec.  
2634.201(f), each financial disclosure report filed pursuant to this 
subpart must disclose the source, type, and the actual amount or value, 
of earned or other noninvestment income in excess of $200 from any one 
source which is received by the filer during the reporting period, 
including:
    (1) Salaries, fees, commissions, wages and any other compensation 
for personal services (other than from United States Government 
employment);
    (2) Retirement benefits (other than from United States Government 
employment, including the Thrift Savings Plan, or from Social Security);
    (3) Any honoraria, and the date services were provided, including 
payments made or to be made to charitable organizations on behalf of the 
filer in lieu of honoraria; and
    (4) Any other noninvestment income, such as prizes, awards, or 
discharge of indebtedness.

    Note to paragraph (a)(3): In calculating the amount of an 
honorarium, subtract any actual and necessary travel expenses incurred 
by the recipient and one relative. If such expenses are paid or 
reimbursed by the honorarium source, they shall not be counted as part 
of the honorarium payment.
    Example 1: An official is a participant in the defined benefit 
retirement plan of Coastal Airlines. Since his retirement from Coastal 
Airlines, the filer receives a $5,000 pension payment each month. The 
pension income must be disclosed as employment-related income.
    Example 2: An official serves on the board of directors at a bank, 
for which he receives a $5,000 fee each calendar quarter. He also 
receives an annual fee of $15,000 for service as trustee of a private 
trust. In both instances, such fees received or earned during the 
reporting period must be disclosed, and the actual amount must be shown.

    (b) Investment income. Except as indicated in Sec.  2634.309, each 
financial disclosure report filed pursuant to this subpart must 
disclose:
    (1) The source and type of investment income, characterized as 
dividends, rent, interest, capital gains, or income from qualified or 
excepted trusts or excepted investment funds (see Sec.  2634.312), which 
is received by the filer during the reporting period, and which exceeds 
$200 in amount or value from any one source. Examples include, but are 
not limited to, income derived from real estate, collectible items, 
stocks, bonds, notes, copyrights, pensions, mutual funds, the investment 
portion of life insurance contracts, loans, and personal savings 
accounts (as defined in Sec.  2634.301(c)(2)). Note that for entities

[[Page 563]]

with portfolio holdings, such as brokerage accounts or trusts, each 
underlying source of income must be separately disclosed, unless the 
entity qualifies for special treatment under Sec.  2634.312. The amount 
or value of income from each reported source must also be disclosed and 
categorized in accordance with the following table:
    (i) None (or less than $201);
    (ii) $201 but not more than $1,000;
    (iii) Greater than $1,000 but not more than $2,500;
    (iv) Greater than $2,500 but not more than $5,000;
    (v) Greater than $5,000 but not more than $15,000;
    (vi) Greater than $15,000 but not more than $50,000;
    (vii) Greater than $50,000 but not more than $100,000;
    (viii) Greater than $100,000 but not more than $1,000,000; and
    (ix) Greater than $1,000,000;
    (x) Provided that, with respect to investment income of the filer 
alone or joint investment income of the filer with the filer's spouse 
and/or dependent children, the following additional categories over 
$1,000,000 will apply:
    (A) Greater than $1,000,000 but not more than $5,000,000; and
    (B) Greater than $5,000,000.
    (2) The source, type, and the actual amount or value of gross income 
from a business, distributive share of a partnership, joint business 
venture income, payments from an estate or an annuity or endowment 
contract, or any other items of income not otherwise covered by 
paragraphs (a) or (b)(1) of this section which are received by the filer 
during the reporting period and which exceed $200 from any one source.

    Example 1: An official rents out a portion of his residence. He 
receives rental income of $6,000 from one individual for four months and 
$12,000 from another individual for the remaining eight months of the 
year covered by his incumbent financial disclosure report. He must 
identify the property, specify the type of income (rent), and indicate 
the category of the total amount of rent received. (He must also 
disclose the asset information required by Sec.  2634.301.)
    Example 2: An official has an ownership interest in a fast-food 
restaurant, from which she receives $25,000 in annual income. She must 
specify on her financial disclosure report the type of income, such as 
partnership distributive share or gross business income, and indicate 
the actual amount of such income. (Additionally, she must describe the 
business and categorize its asset value, pursuant to Sec.  2634.301.)
    Example 3: A reporting individual owned stock in XYZ, a publicly-
traded corporation. During the reporting period, she received $85 in 
dividends and, when she sold her shares, $175 in capital gains. The 
individual must disclose XYZ Corporation because the stock generated 
more than $200 in income. She also must specify the type of income 
(dividends and capital gains), and indicate the category of the total 
amount of income received. (She must also disclose the asset information 
required by Sec.  2634.301.)



Sec.  2634.303  Purchases, sales, and exchanges.

    (a) In general. Except for reports required under Sec.  2634.201(f) 
and as indicated in Sec.  2634.310(b), each financial disclosure report 
filed pursuant to this subpart must include a brief description, the 
date, and value (using the categories of value in Sec.  2634.301(d)(2) 
through (9)) of any purchase, sale, or exchange by the filer during the 
reporting period, in which the amount involved in the transaction 
exceeds $1,000. The acquisition of an asset through inheritance is not 
considered a transaction for purposes of this section. Reportable 
transactions include:
    (1) Of real property, other than a personal residence of the filer 
or spouse, as defined in Sec.  2634.105(l); and
    (2) Of stocks, bonds, commodity futures, mutual fund shares, and 
other forms of securities.
    (b) Exceptions. The following transactions need not be reported 
under paragraph (a) of this section:
    (1) Transactions solely by and between the reporting individual, the 
reporting individual's spouse, or the reporting individual's dependent 
children;
    (2) Transactions involving Treasury bills, notes, and bonds; money 
market mutual funds or accounts; and bank accounts (as defined in Sec.  
2634.301(c)(2)), provided they occur at rates, terms, and conditions 
available generally to members of the public;
    (3) Transactions involving holdings of trusts and investment funds 
described in Sec.  2634.312(b) and (c);
    (4) Transactions which occurred at a time when the reporting 
individual was not a public financial disclosure filer

[[Page 564]]

or was not a Federal Government officer or employee; and
    (5) Transactions fully disclosed in any public financial disclosure 
report filed during the calendar year pursuant to Sec.  2634.309.

    Example 1: An employee sells her personal residence in Virginia for 
$650,000 and purchases a personal residence in the District of Columbia 
for $800,000. She did not rent out any portion of the Virginia property 
and does not intend to rent out the property in DC. She need not report 
the sale of the Virginia residence or the purchase of the DC residence.
    Example 2: An official sells his beach home in Maryland for 
$350,000. Because he has rented it out for one month every summer, it 
does not qualify as a personal residence. He must disclose the sale 
under this section and any capital gain over $200 realized on the sale 
under Sec.  2634.302.
    Example 3: An official sells a ranch to his dependent daughter. The 
official need not report the sale because it is a transaction between 
the reporting individual and a dependent child; however, any capital 
gain, except for that portion attributable to a personal residence, is 
required to be reported under Sec.  2634.302.
    Example 4: An official sells an apartment building and realizes a 
loss of $100,000. He must report the sale of the building if the sale 
price of the property exceeds $1,000; however, he need not report 
anything under Sec.  2634.302, as the sale did not result in a capital 
gain.
    Example 5: An official buys shares in an S&P 500 mutual fund worth 
$12,000 in the 401(k) account that he has with a previous employer. He 
must disclose the purchase under this section. To make the purchase, he 
sold $12,000 worth of shares in a money market fund also held in the 
401(k). He does not need to disclose the sale of the money market fund 
shares.
    Example 6: An official sells her interest in a private business for 
$75,000. She must disclose the sale under this section, and she must 
disclose any capital gain over $200 realized on the sale under Sec.  
2634.302.



Sec.  2634.304  Gifts and reimbursements.

    (a) Gifts. Except reports required under Sec.  2634.201(f) and as 
indicated in Sec.  2634.310(b), each financial disclosure report filed 
pursuant to this subpart must contain the identity of the source, a 
brief description, and the value of all gifts aggregating more than $390 
in value which are received by the filer during the reporting period 
from any one source. For in-kind travel-related gifts, include a travel 
itinerary, dates, and nature of expenses provided.

    Note to paragraph (a): Under sections 102(a)(2)(A) and (B) of the 
Ethics in Government Act, the reporting thresholds for gifts, 
reimbursements, and travel expenses are tied to the dollar amount for 
the ``minimal value'' threshold for foreign gifts established by the 
Foreign Gifts and Decoration Act, 5 U.S.C. 7342(a)(5). The General 
Services Administration (GSA), in consultation with the Secretary of 
State, redefines the value every 3 years. In 2017, the amount was set at 
$390. In subsection (d) the Office of Government Ethics sets the 
aggregation exception amount and redefines the value every 3 years. In 
2017, the amount was set at $156. The Office of Government Ethics will 
update this part in 2020 and every three years thereafter to reflect the 
new amounts.

    (b) Reimbursements. Except as indicated in Sec. Sec.  2634.309 and 
2634.310(b), each financial disclosure report filed pursuant to this 
subpart must contain the identity of the source, a brief description 
(including a travel itinerary, dates, and the nature of expenses 
provided), and the value of any travel-related reimbursements 
aggregating more than $390 in value, which are received by the filer 
during the reporting period from any one source. The filer is not 
required to report travel reimbursements received from the filer's non-
Federal employer.
    (c) Exclusions. Reports need not contain any information about gifts 
and reimbursements to which the provisions of this section would 
otherwise apply which are received from relatives (see Sec.  
2634.105(o)) or during a period in which the filer was not an officer or 
employee of the Federal Government. Additionally, any food, lodging, or 
entertainment received as ``personal hospitality of any individual,'' as 
defined in Sec.  2634.105(k), need not be reported. See also exclusions 
specified in the definitions of gift and reimbursement, at Sec.  
2634.105(h) and (n).
    (d) Aggregation exception. Any gift or reimbursement with a fair 
market value of $156 or less need not be aggregated for purposes of the 
reporting rules of this section. However, the acceptance of gifts, 
whether or not reportable, is subject to the restrictions imposed by 
Executive Order 12674, as modified by Executive Order 12731, and

[[Page 565]]

the implementing regulations on standards of ethical conduct.

    Example 1: An official accepts a print, a pen and pencil set, and a 
letter opener from a community service organization he has worked with 
solely in his private capacity. He determines, in accordance with 
paragraph (e) of this section, that these gifts are valued as follows:
Gift 1--Print: $220
Gift 2--Pen and pencil set: $185
Gift 3--Letter opener: $20
    The official must disclose Gifts 1 and 2, since together they 
aggregate more than $390 in value from the same source. Gift 3 need not 
be aggregated, because its value does not exceed $156.
    Example 2: An official receives the following gifts from a single 
source:
    1. Dinner for two at a local restaurant--$200.
    2. Round-trip taxi fare to meet donor at the restaurant--$25.
    3. Dinner at donor's city residence--(value uncertain).
    4. Round-trip airline transportation and hotel accommodations to 
visit Epcot Center in Florida--$600.
    5. Weekend at donor's country home, including duck hunting and 
tennis match--(value uncertain).
    Based on the minimal value threshold established in 2017, the 
official need only disclose Gift 4. Gift 1 falls within the exclusion in 
Sec.  2634.105(h)(4) for food and beverages not consumed in connection 
with a gift of overnight lodging. Gifts 3 and 5 need not be disclosed 
because they fall within the exception for personal hospitality of an 
individual. Gift 2 need not be aggregated and reported, because its 
value does not exceed $156.
    Example 3: A non-Federal organization asks an official to speak at 
an out-of-town meeting on a matter that is unrelated to her official 
duties and her agency. She accepts the invitation and travels on her own 
time to the event. The round-trip airfare costs $500. Based on the 
minimal value threshold established in 2017, the official must disclose 
the value of the plane ticket whether the organization pays for the 
ticket directly or reimburses her for her purchase of the ticket.

    (e) Valuation of gifts and reimbursements. The value to be assigned 
to a gift or reimbursement is its fair market value in the United 
States. For most reimbursements, this will be the amount actually 
received. For gifts, the value should be determined in one of the 
following manners:
    (1) Except as provided in paragraph (e)(4) of this section, if the 
gift is readily available in the market, the value is its retail price. 
The filer need not contact the donor, but may contact a retail 
establishment selling similar items to determine the present cost in the 
market.
    (2) If the item is not readily available in the market, such as a 
piece of art, a handmade item, or an antique, the filer may make a good 
faith estimate of the value of the item.
    (3) The term ``readily available in the market'' means that an item 
generally is available for retail purchase.
    (4) The market value of a ticket entitling the holder to attend an 
event which includes food, refreshments, entertainment, or other 
benefits is the face value of the ticket, which may exceed the actual 
cost of the food and other benefits.

    Example: Items such as a pen and pencil set, letter opener, leather 
case, or engraved pen are generally available in the market and can be 
determined by researching the retail price for each item online.

    (f) Waiver rule in the case of certain gifts. In unusual cases, the 
value of a gift as defined in Sec.  2634.105(h) need not be aggregated 
for reporting threshold purposes under this section, and therefore the 
gift need not be reported on a public financial disclosure report, if 
the Director of the Office of Government Ethics grants a publicly 
available waiver to a public filer.
    (1) Standard. If the Director receives a written request for a 
waiver, the Director will issue a waiver upon determining that:
    (i) Both the basis of the relationship between the grantor and the 
grantee and the motivation behind the gift are personal; and
    (ii) No countervailing public purpose requires public disclosure of 
the nature, source, and value of the gift.

    Example The Secretary of Education and her spouse receive the 
following two wedding gifts: (A) A crystal decanter valued at $450 from 
the Secretary's former college roommate and lifelong friend, who is a 
real estate broker in Wyoming; and (B) A gift of a print valued at $500 
from a business partner of the spouse, who owns a catering company. 
Under these circumstances, the Director of OGE may grant a request for a 
waiver of the requirement to report on a public financial disclosure 
report each of these gifts.

    (2) Public disclosure of waiver request. If approved in whole or in 
part, the

[[Page 566]]

cover letter requesting the waiver and the waiver will be subject to the 
public disclosure requirements in Sec.  2634.603. Enclosures to the 
cover letter, required by paragraph (3)(ii) of this section, are not 
covered by Sec.  2634.603.
    (3) Procedure. (i) A public filer seeking a waiver under this 
section must submit a request to the designated agency ethics official 
for the employee's agency. The designated agency ethics official must 
sign a cover letter that identifies the filer and the filer's position 
and states that a waiver is requested under this section. To the extent 
practicable, the designated agency ethics official should avoid 
including other personal identifying information about the employee in 
the cover letter.
    (ii) In an enclosure to the cover letter, the filer must set forth:
    (A) The identity and occupation of the donor;
    (B) A statement that the relationship between the donor and the 
filer is personal in nature;
    (C) An explanation of all relevant circumstances surrounding the 
gift, including whether any donor is a prohibited source, as defined in 
Sec.  2635.203(d), or represents a prohibited source and whether the 
gift was given because of the employee's official position; and
    (D) A brief description of the gift and the value of the gift.
    (iii) With respect to the information required in paragraph 
(f)(3)(ii) of this section, if a gift has more than one donor, the filer 
shall provide the necessary information for each donor.
    (iv) The Director will approve or disapprove any request for a 
waiver in writing. In the event that a waiver is granted, the Director 
will avoid including personal information about the filer to the extent 
practicable.



Sec.  2634.305  Liabilities.

    (a) In general. Except reports required under Sec.  2634.201(f), 
each financial disclosure report filed pursuant to this subpart must 
identify and include a brief description of the filer's liabilities 
exceeding $10,000 owed to any creditor at any time during the reporting 
period, and the name of the creditors to whom such liabilities are owed. 
The report also must designate the category of value of the liabilities 
in accordance with Sec.  2634.301(d) based on the greatest amount owed 
to the creditor during the period, except that the amount of a revolving 
charge account is based on the balance at the end of the reporting 
period.
    (b) Exceptions. The following are not required to be reported under 
paragraph (a) of this section:
    (1) Personal liabilities owed to a spouse or to the parent, brother, 
sister, or child of the filer, spouse, or dependent child; and
    (2) Any loan secured by a personal motor vehicle, household 
furniture, or appliances, provided that the loan does not exceed the 
purchase price of the item which secures it; and
    (c) Limited exception for mortgages on personal residences. (1) The 
President, the Vice President, and a filer nominated for or appointed by 
the President to a position that requires the advice and consent of the 
Senate, other than those identified in paragraph (c)(2) of this section, 
must disclose a mortgage on a personal residence.
    (2) Other public filers are not required to disclose a mortgage on a 
personal residence. Such filers include individuals who are nominated or 
appointed by the President to a Senate-confirmed position as a Foreign 
Service Officer below the rank of ambassador or a special Government 
employee.

    Example 1: A career official in the Senior Executive Service has the 
following debts outstanding during the reporting period:
    1. Mortgage on personal residence--$200,000.
    2. Mortgage on rental property--$150,000.
    3. VISA Card--$1,000.
    4. Loan balance of $15,000, secured by family automobile purchased 
for $16,200.
    5. Loan balance of $10,500, secured by antique furniture purchased 
for $8,000.
    6. Loan from parents--$20,000.
    7. A personal line of credit up to $20,000 on which no draws have 
been made.
    The loans indicated in items 2 and 5 must be disclosed in the 
official's annual financial disclosure report. Loan 1 is exempt from 
disclosure under paragraph (c) of this section because it is secured by 
the personal residence and the filer is not covered by the STOCK Act 
provision requiring reporting. Loan 3 need not be disclosed under 
paragraph (a) of this section because it is considered to be a revolving 
charge account with an outstanding liability that does not exceed 
$10,000 at the end of the reporting period.

[[Page 567]]

Loan 4 need not be disclosed under paragraph (b)(2) of this section 
because it is secured by a personal motor vehicle which was purchased 
for more than the value of the loan. Loan 6 need not be disclosed 
because the creditors are persons specified in paragraph (b)(1) of this 
section. Loan 7 need not be disclosed because the filer has not drawn on 
the line of credit and, as a result, had no outstanding liability 
associated with the line of credit during the reporting period.
    Example 2: An incumbent official has $15,000 of outstanding debt in 
an American Express account in July. On December 31, the outstanding 
liability is $7,000. The liability does not need to be disclosed in the 
official's annual financial disclosure report because it does not exceed 
$10,000 at the end of the reporting period.
    Example 3: A Secretary of a Department has an outstanding home 
improvement loan in the amount of $25,000, which is secured by her home. 
This liability must be disclosed on the annual financial disclosure 
report.



Sec.  2634.306  Agreements and arrangements.

    Except reports required under Sec.  2634.201(f), each financial 
disclosure report filed pursuant to this subpart must identify the 
parties to and the date of, and must briefly describe the terms of, any 
agreement or arrangement of the filer in existence at any time during 
the reporting period with respect to:
    (a) Future employment;
    (b) A leave of absence from employment during the period of the 
reporting individual's Government service;
    (c) Continuation of payments by a former employer other than the 
United States Government; and
    (d) Continuing participation in an employee welfare or benefit plan 
maintained by a former employer, other than the United States 
Government.



Sec.  2634.307  Outside positions.

    (a) In general. Except reports required under Sec.  2634.201(f), 
each financial disclosure report filed pursuant to this subpart must 
identify all positions held at any time by the filer during the 
reporting period, as an officer, director, trustee, general partner, 
proprietor, representative, executor, employee, or consultant of any 
corporation, company, firm, partnership, trust, or other business 
enterprise, any nonprofit organization, any labor organization, or any 
educational or other institution other than the United States.
    (b) Exceptions. The following need not be reported under paragraph 
(a) of this section:
    (1) Positions held in any religious, social, fraternal, or political 
entity; and
    (2) Positions solely of an honorary nature, such as those with an 
emeritus designation.

    Example 1: An official recently terminated her role as the managing 
member of a limited liability corporation upon appointment to a position 
in the executive branch. The managing member position must be disclosed 
in the official's new entrant financial disclosure report pursuant to 
this section.
    Example 2: An official is a member of the board of his church. The 
official does not need to disclose the position in his financial 
disclosure report.
    Example 3: An official is an officer in a fraternal organization 
that exists for the purpose of performing service work in the community. 
The official does not need to disclose this position in her financial 
disclosure report.
    Example 4: An official is the ceremonial Parade Marshal for a local 
town's annual Founders' Day event and, in that capacity, leads a parade 
and serves as Master of Ceremonies for an awards ceremony at the town 
hall. The official does not need to disclose this position in her 
financial disclosure report.
    Example 5: An official recently terminated his role as a campaign 
manager for a candidate for the Office of the President of the United 
States upon appointment to a noncareer position in the executive branch. 
The official does not need to disclose the campaign manager position in 
his financial disclosure report.
    Example 6: Immediately prior to her recent appointment to a position 
in an agency, an official terminated her employment as a corporate 
officer. In connection with her employment, she served for several years 
as the corporation's representative to an association that represents 
members of the industry in which the corporation operates. She does not 
need to disclose her role as her employer's representative to the 
association because she performed her representative duties in her 
capacity as a corporate officer.
    Example 7: An official holds a position on the board of directors of 
the local food bank. The official must disclose the position in his 
financial disclosure report.



Sec.  2634.308  Filer's sources of compensation exceeding $5,000 in a year

    (a) In general. A public filer required to file a report as a New 
Entrant or a

[[Page 568]]

Nominee, pursuant to Sec.  2634.201(b) or (c), must identify the filer's 
sources of compensation which exceed $5,000 in any one calendar year. 
This requirement includes compensation paid to another person, such as 
an employer, in exchange for the filer's services (e.g., payments to a 
law firm exceeding $5,000 in any one calendar year in exchange for the 
services of a partner or associate attorney). The filer must also 
briefly describe the nature of the duties performed or services rendered 
(e.g., ``legal services'').
    (b) Exceptions. (1) The name of a source of compensation may be 
excluded only if that information is specifically determined to be 
confidential as a result of a privileged relationship established by law 
and if the disclosure is specifically prohibited by law or regulation, 
by a rule of a professional licensing organization, or by a client 
agreement that at the time of engagement of the filer's services 
expressly provided that the client's name would not be disclosed 
publicly to any person. If the filer excludes the name of any source, 
the filer must indicate in the report that such information has been 
excluded, the number of sources excluded, and, if applicable, a citation 
to the statute, regulation, rule of professional conduct, or other 
authority pursuant to which disclosure of the information is 
specifically prohibited.
    (2) The report need not contain any information with respect to any 
person for whom services were provided by any firm or association of 
which the filer was a member, partner, or employee, unless the filer was 
directly involved in the provision of such services.
    (3) The President, the Vice President, and a candidate referred to 
in Sec.  2634.201(d) are not required to report this information.

    Example: A nominee who is a partner or employee of a law firm and 
who has worked on a matter involving a client from which the firm 
received over $5,000 in fees during a calendar year must report the name 
of the client only if the value of the services rendered by the nominee 
exceeded $5,000. The name of the client would not normally be considered 
confidential, unless the matter potentially involved an investigation or 
enforcement action involving the client by the government and the 
client's name has never been disclosed publicly in connection with the 
representation. As a result, the nominee must disclose the client's 
identity unless it is protected by statute, a court order, is under 
seal, or is considered confidential because: (1) The client is the 
subject of a non-public proceeding or investigation and the client has 
not been identified in a public filing, statement, appearance, or 
official report; (2) disclosure of the client's name is specifically 
prohibited by a rule of professional conduct that can be enforced by a 
professional licensing body; or (3) a privileged relationship was 
established by a written confidentiality agreement, entered into at the 
time that the filer's services were retained, that expressly prohibits 
disclosure of the client's identity.



Sec.  2634.309  Periodic reporting of transactions.

    (a) In general. Each financial disclosure report filed pursuant to 
Sec.  2634.201(f) must include a brief description, the date, and value 
(using the categories of value in Sec.  2634.301(d)(2) through (9)) of 
any purchase, sale, or exchange of stocks, bonds, commodity futures, and 
other forms of securities by the filer during the reporting period, in 
which the amount involved in the transaction exceeds $1,000.
    (b) Exceptions. The following transactions need not be reported 
under paragraph (a) of this section:
    (1) Transactions solely by and between the reporting individual, the 
reporting individual's spouse, or the reporting individual's dependent 
children;
    (2) Transactions of excepted investment funds as defined in Sec.  
2634.312(c);
    (3) Transactions involving Treasury bills, notes, and bonds; money 
market mutual funds or accounts; and bank accounts (as defined in Sec.  
2634.301(c)(2)), provided they occur at rates, terms, and conditions 
available generally to members of the public;
    (4) Transactions involving holdings of trusts and investment funds 
described in Sec.  2634.312(b) and (c); and
    (5) Transactions which occurred at a time when the reporting 
individual was not a public financial disclosure filer or was not a 
Federal Government officer or employee.



Sec.  2634.310  Reporting periods.

    (a) Incumbents. Each financial disclosure report filed pursuant to

[[Page 569]]

Sec.  2634.201(a) must include a full and complete statement of the 
information required to be reported under this subpart, for the 
preceding calendar year (except for Sec. Sec.  2634.303 and 2634.304, 
relating to transactions and gifts/reimbursements, for which the 
reporting period does not include any portion of the previous calendar 
year during which the filer was not a Federal employee). In the case of 
Sec. Sec.  2634.306 and 2634.307, the reporting period also includes the 
current calendar year up to the date of filing.
    (b) New entrants, nominees, and candidates. Each financial 
disclosure report filed pursuant to Sec.  2634.201(b) through (d) must 
include a full and complete statement of the information required to be 
reported under this subpart, except for Sec.  2634.303 (relating to 
purchases, sales, and exchanges of certain property) and Sec.  2634.304 
(relating to gifts and reimbursements). The following special rules 
apply:
    (1) Interests in property. For purposes of Sec.  2634.301, the 
report must include all interests in property specified by that section 
which are held on or after a date which is fewer than 31 days before the 
date on which the report is filed.
    (2) Income. For purposes of Sec.  2634.302, the report must include 
all income items specified by that section which are received during the 
period beginning on January 1 of the preceding calendar year and ending 
on the date on which the report is filed, except as otherwise provided 
by Sec.  2634.606 relating to updated disclosure for nominees.
    (3) Liabilities. For purposes of Sec.  2634.305, the report must 
include all liabilities specified by that section which are owed during 
the period beginning on January 1 of the preceding calendar year and 
ending fewer than 31 days before the date on which the report is filed.
    (4) Agreements and arrangements. For purposes of Sec.  2634.306, the 
report will include only those agreements and arrangements which still 
exist at the time of filing.
    (5) Outside positions. For purposes of Sec.  2634.307, the report 
must include all such positions held during the preceding two calendar 
years and the current calendar year up to the date of filing.
    (6) Certain sources of compensation. For purposes of Sec.  2634.308, 
the report must also identify the filer's sources of compensation which 
exceed $5,000 during either of the preceding two calendar years or 
during the current calendar year up to the date of filing.
    (c) Termination reports. Each financial disclosure report filed 
under Sec.  2634.201(e) must include a full and complete statement of 
the information required to be reported under this subpart, covering the 
preceding calendar year if an incumbent report required by Sec.  
2634.201(a) has not been filed and covering the portion of the calendar 
year in which such termination occurs up to the date the individual left 
such office or position.
    (d) Periodic reporting of transactions. Each financial disclosure 
report filed under Sec.  2634.201(f) must include a full and complete 
statement of the information required to be reported according to the 
provisions of Sec.  2634.309. The report must be filed within 30 days of 
receiving notification of a covered transaction, but not later than 45 
days after the date such transaction was executed.

    Example: A filer receives a statement on October 10 notifying her of 
all of the covered transactions executed by her broker on her behalf in 
September. Although each transaction may have a different due date, if 
the filer reports all the covered transactions from September on a 
report filed on or before October 15, the filer will ensure that all 
transactions have been timely reported.



Sec.  2634.311  Spouses and dependent children.

    (a) Special disclosure rules. Each report required by the provisions 
of subpart B of this part must also include the following information 
with respect to the spouse or dependent children of the reporting 
individual:
    (1) Income. For purposes of Sec.  2634.302:
    (i) With respect to a spouse, the source but not the amount of 
earned income (other than honoraria) which exceeds $1,000 from any one 
source; and if earned income is derived from a spouse's self-employment 
in a business or profession, the nature of the business or profession 
but not the amount of the earned income;
    (ii) With respect to a spouse, the source and the actual amount or 
value

[[Page 570]]

of any honoraria received by the spouse (or payments made or to be made 
to charity on the spouse's behalf in lieu of honoraria) which exceed 
$200 from any one source, and the date on which the services were 
provided; and
    (iii) With respect to a spouse or dependent child, the type and 
source, and the amount or value (category or actual amount, in 
accordance with Sec.  2634.302), of all other income exceeding $200 from 
any one source, such as investment income from interests in property (if 
the property itself is reportable according to Sec.  2634.301).

    Example 1: The spouse of a filer is employed as a teller at Bank X 
and earns $50,000 per year. The report must disclose that the spouse is 
employed by Bank X. The amount of the spouse's earnings need not be 
disclosed.
    Example 2: The spouse of a reporting individual is self-employed as 
a pediatrician. The report must disclose her self-employment as a 
physician, but need not disclose the amount of income.

    (2) Gifts and reimbursements. For purposes of Sec.  2634.304, gifts 
and reimbursements received by a spouse or dependent child, unless the 
gift was given to the spouse or dependent child totally independent of 
their relationship to the filer.
    (3) Interests in property, transactions, and liabilities. For 
purposes of Sec. Sec.  2634.301, 2634.303, 2634.305, and 2634.309, all 
information concerning property interests, transactions, or liabilities 
referred to by those sections of a spouse or dependent child.
    (b) Exception. For reports filed as a new entrant, nominee, or 
candidate under Sec.  2634.201(b) through (d), no information regarding 
gifts and reimbursements or transactions is required for a spouse or 
dependent child.
    (c) Divorce and separation. A reporting individual need not report 
any information about:
    (1) A spouse living separate and apart from the reporting individual 
with the intention of terminating the marriage or providing for 
permanent separation;
    (2) A former spouse or a spouse from whom the reporting individual 
is permanently separated; or
    (3) Any income or obligations of the reporting individual arising 
from dissolution of the reporting individual's marriage or permanent 
separation from a spouse.
    (d) Unusual circumstances. In very rare cases, certain interests in 
property, transactions, and liabilities of a spouse or a dependent child 
are excluded from reporting requirements, provided that each requirement 
of this paragraph is strictly met.
    (1) The filer must certify without qualification that the item 
represents the spouse's or dependent child's sole financial interest or 
responsibility, and that the filer has no knowledge regarding that item;
    (2) The item must not be in any way, past or present, derived from 
the income, assets or activities of the filer; and
    (3) The filer must not derive, or expect to derive, any financial or 
economic benefit from the item.

    Note to paragraph (d): The exception described in paragraph (d) is 
not available to most filers. A filer who files a joint tax return with 
a spouse will normally be deemed to derive a financial or economic 
benefit from every financial interest of the spouse, and the filer will 
not be able to rely on this exception. If a filer and the filer's spouse 
cohabitate, share any expenses, or are jointly responsible for the care 
of children, the filer will be deemed to derive an economic benefit from 
every financial interest of the spouse.
    Example: The spouse of a filer shares in paying expenses or taxes of 
the marriage or family (for example, any such item as: A household item, 
food, clothing, vacation, automobile maintenance or fuel, any child-
related expense, income tax, or real estate tax, etc.). The spouse of a 
filer has a brokerage account. The spouse does not share any information 
about the holdings and does not want the information disclosed on a 
financial disclosure statement. The filer must disclose the holdings in 
the spouse's brokerage account because the filer is deemed to derive a 
financial or economic benefit from any asset of the filer's spouse who 
shares in paying expenses or taxes of the marriage or family.



Sec.  2634.312  Trusts, estates, and investment funds.

    (a) In general. (1) Except as otherwise provided in this section, 
each financial disclosure report must include the information required 
by this subpart about the holdings of and income from

[[Page 571]]

the holdings of any trust, estate, investment fund or other financial 
arrangement from which income is received by, or with respect to which a 
beneficial interest in principal or income is held by, the filer, the 
filer's spouse, or dependent child.
    (2) Information about the underlying holdings of a trust is required 
if the filer, filer's spouse, or dependent child currently is entitled 
to receive income from the trust or is entitled to access the principal 
of the trust. If a filer, filer's spouse, or dependent child has a 
beneficial interest in a trust that either will provide income or the 
ability to access the principal in the future, the filer should 
determine whether there is a vested interest in the trust under 
controlling state law. However, no information about the underlying 
holdings of the trust is required for a nonvested beneficial interest in 
the principal or income of a trust.

    Note to paragraph (a): Nothing in this section requires the 
reporting of the holdings or income of a revocable inter vivos trust 
(also known as a ``living trust'') with respect to which the filer, the 
filer's spouse, or dependent child has only a remainder interest, 
whether or not vested, provided that the grantor of the trust is neither 
the filer, the filer's spouse, nor the filer's dependent child. 
Furthermore, nothing in this section requires the reporting of the 
holdings or income of a revocable inter vivos trust from which the 
filer, the filer's spouse, or dependent child receives any discretionary 
distribution, provided that the grantor of the trust is neither the 
filer, the filer's spouse, nor the filer's dependent child.

    (b) Qualified trusts and excepted trusts. (1) A filer should not 
report information about the holdings of or income from holdings of, any 
qualified blind trust (as defined in Sec.  2634.402) or any qualified 
diversified trust (as defined in Sec.  2634.402). For a qualified blind 
trust, a public financial disclosure report must disclose the category 
of the aggregate amount of the trust's income attributable to the 
beneficial interest of the filer, the filer's spouse, or dependent child 
in the trust. For a qualified diversified trust, a public financial 
disclosure report must disclose the category of the aggregate amount of 
income with respect to such a trust which is actually received by the 
filer, the filer's spouse, or dependent child, or applied for the 
benefit of any of them.
    (2) In the case of an excepted trust, a filer should indicate the 
general nature of its holdings, to the extent known, but will not 
otherwise need to report information about the trust's holdings or 
income from holdings. The category of the aggregate amount of income 
from an excepted trust which is received by the filer, the filer's 
spouse, or dependent child must be reported on public financial 
disclosure reports. For purposes of this part, the term ``excepted 
trust'' means a trust:
    (i) Which was not created directly by the filer, spouse, or 
dependent child; and
    (ii) The holdings or sources of income of which the filer, spouse, 
or dependent child have no specific knowledge through a report, 
disclosure, or constructive receipt, whether intended or inadvertent.
    (c) Excepted investment funds. (1) No information is required under 
paragraph (a) of this section about the underlying holdings of or income 
from underlying holdings of an excepted investment fund as defined in 
paragraph (c)(2) of this section, except that the fund itself must be 
identified as an interest in property and/or a source of income. Filers 
must also disclose the category of value of the fund interest held; 
aggregate amount of income from the fund which is received by the filer, 
the filer's spouse, or dependent child; and value of any transactions 
involving shares or units of the fund.
    (2) For purposes of financial disclosure reports filed under the 
provisions of this part, an ``excepted investment fund'' means a widely 
held investment fund (whether a mutual fund, regulated investment 
company, common trust fund maintained by a bank or similar financial 
institution, pension or deferred compensation plan, or any other pooled 
investment fund), if:
    (i)(A) The fund is publicly traded or available; or
    (B) The assets of the fund are widely diversified; and
    (ii) The filer neither exercises control over nor has the ability to 
exercise control over the financial interests held by the fund.

[[Page 572]]

    (3) A fund is widely diversified if it does not have a stated policy 
of concentrating its investments in any industry, business, or single 
country other than the United States or bonds of a single state within 
the United States.

    Note to paragraph (c): The fact that an investment fund qualifies as 
an excepted investment fund is not relevant to a determination as to 
whether the investment qualifies for an exemption to the criminal 
conflict of interest statute at 18 U.S.C. 208(a), pursuant to part 2640 
of this chapter. Some excepted investment funds qualify for exemptions 
pursuant to part 2640, while other excepted investment funds do not 
qualify for such exemptions. If an employee holds an excepted investment 
fund that is not exempt from 18 U.S.C. 208(a), the ethics official may 
need additional information from the filer to determine if the holdings 
of the fund create a conflict of interest and should advise the employee 
to monitor the fund's holdings for potential conflicts of interest.



Sec.  2634.313  Special rules.

    (a) Political campaign funds. Political campaign funds, including 
campaign receipts and expenditures, need not be included in any report 
filed under this part. However, if the individual has authority to 
exercise control over the fund's assets for personal use rather than 
campaign or political purposes, that portion of the fund over which such 
authority exists must be reported.
    (b) Reporting standards. (1) A filer may attach to the financial 
disclosure report, a copy of a statement which, in a clear and concise 
fashion, readily discloses all information that the filer would 
otherwise have been required to enter, but only if authorized by the 
designated agency ethics official or for reports that are reviewed by 
the Office of Government Ethics, the Director. The filer must annotate 
the report clearly to the extent necessary to identify information 
required by this part, including, when required, the identification of 
assets as excepted investment funds and the identification of income 
types. In addition, the statement must identify all income required to 
be disclosed for the entire reporting period. Any statement attached to 
a financial disclosure report and its contents may be subject to public 
release. A filer who attaches a statement to a reporting form is solely 
responsible for redacting personal information not otherwise subject to 
disclosure prior to filing the financial disclosure report (e.g., 
account numbers, addresses, etc.).
    (2) In lieu of reporting the category of amount or value of any item 
listed in any report filed pursuant to this subpart, a filer may report 
the actual dollar amount of such item.



                       Subpart D_Qualified Trusts



Sec.  2634.401  Overview.

    (a) Purpose. The Ethics in Government Act of 1978 created two types 
of qualified trusts, the qualified blind trust and the qualified 
diversified trust, that may be used by employees to reduce real or 
apparent conflicts of interest. The primary purpose of an executive 
branch qualified trust is to confer on an independent trustee and any 
other designated fiduciary the sole responsibility to administer the 
trust and to manage trust assets without participation by, or the 
knowledge of, any interested party or any representative of an 
interested party. This responsibility includes the duty to decide when 
and to what extent the original assets of the trust are to be sold or 
disposed of, and in what investments the proceeds of sale are to be 
reinvested. Because the requirements set forth in the Ethics in 
Government Act and this part assure true ``blindness,'' employees who 
have a qualified trust cannot be influenced in the performance of their 
official duties by their financial interests in the trust assets. Their 
official actions, under these circumstances, should be free from 
collateral attack arising out of real or apparent conflicts of interest.
    (b) Scope. Two characteristics of the qualified trust assure that 
true ``blindness'' exists: The independence of the trustee and the 
restriction on communications between the independent trustee and the 
interested parties. In order to serve as a trustee for an executive 
branch qualified trust, an entity must meet the strict requirements for 
independence set forth in the Ethics in Government Act and this part. 
Restrictions on communications also reinforce the independence of the 
trustee from the interested parties. During both the

[[Page 573]]

establishment of the trust and the administration of the trust, 
communications are limited to certain reports that are required by the 
Act and to written communications that are pre-screened by the Office of 
Government Ethics. No other communications, even about matters not 
connected to the trust, are permitted between the independent trustee 
and the interested parties.



Sec.  2634.402  Definitions.

    As used in this subpart:
    (a) Director means the Director of the Office of Government Ethics.
    (b) Employee means an officer or employee of the executive branch of 
the United States.
    (c) Independent trustee means a trustee who meets the requirements 
of Sec.  2634.405 and who is approved by the Director under this 
subpart.
    (d) Interested party means the President, the Vice President, an 
employee, a nominee or candidate as described in Sec.  2634.201, and the 
spouse and any minor or dependent child of the President, Vice 
President, employee, or a nominee or candidate as described in Sec.  
2634.201, in any case in which the employee, spouse, or minor or 
dependent child has a beneficial interest in the principal or income of 
a trust proposed for certification under this subpart or certified under 
this subpart.
    (e) Qualified blind trust means a trust in which the interested 
party has a beneficial interest and which:
    (1) Is certified pursuant to Sec.  2634.407 by the Director;
    (2) Has a portfolio as specified in Sec.  2634.406(a);
    (3) Follows the model trust document prepared by the Office of 
Government Ethics; and
    (4) Has an independent trustee as defined in Sec.  2634.405.
    (f) Qualified diversified trust means a trust in which the 
interested party has a beneficial interest and which:
    (1) Is certified pursuant to Sec.  2634.407 by the Director;
    (2) Has a portfolio as specified in Sec.  2634.406(b);
    (3) Follows the model trust document prepared by the Office of 
Government Ethics; and
    (4) Has an independent trustee as defined in Sec.  2634.405.
    (g) Qualified trust means a trust described in the Ethics in 
Government Act of 1978 and this part and certified by the Director under 
this subpart. There are two types of qualified trusts, the qualified 
blind trust and the qualified diversified trust.



Sec.  2634.403  General description of trusts.

    (a) Qualified blind trust. (1) The qualified blind trust is the most 
universally adaptable qualified trust. An interested party may put most 
types of assets (such as cash, stocks, bonds, mutual funds, or real 
estate) into a qualified blind trust.
    (2) In the case of a qualified blind trust, 18 U.S.C. 208 and other 
Federal conflict of interest statutes and regulations apply to the 
assets that an interested party transfers to the trust until such time 
as he or she is notified by the independent trustee that such asset has 
been disposed of or has a value of less than $1,000. Because the 
interested party knows what assets he or she placed in the trust and 
there is no requirement that these assets be diversified, the 
possibility still exists that the interested party could be influenced 
in the performance of official duties by those interests.
    (b) Qualified diversified trust. (1) An interested party may put 
only readily marketable securities into a qualified diversified trust. 
In addition, the portfolio must meet the diversification requirements of 
Sec.  2634.406(b)(2).
    (2) In the case of a qualified diversified trust, the conflict of 
interest laws do not apply to the assets that an interested party 
transfers to the trust. Because the assets that an interested party puts 
into this trust must meet the diversification requirements set forth in 
this part, the diversification achieves ``blindness'' with regard to the 
initial assets.
    (3) Special notice for Presidential appointees--(i) In general. In 
any case in which the establishment of a qualified diversified trust is 
contemplated with respect to an individual whose nomination is being 
considered by a Senate committee, that individual must inform the 
committee of the intention to

[[Page 574]]

establish a qualified diversified trust at the time of filing a 
financial disclosure report with the committee.
    (ii) Applicability. Paragraph (b)(3)(i) of this section is not 
applicable to members of the uniformed services or Foreign Service 
officers. The special notice requirement of this section will not 
preclude an individual from seeking the certification of a qualified 
blind trust or qualified diversified trust after the Senate has given 
its advice and consent to a nomination.
    (c) Conflict of interest laws. In the case of each type of trust, 
the conflict of interest laws do not apply to the assets that the 
independent trustee or any other designated fiduciary adds to the trust.



Sec.  2634.404  Summary of procedures for creation of a qualified trust.

    (a) Consultation with the Office of Government Ethics. Any 
interested party (or that party's representative) who is considering 
setting up a qualified blind or qualified diversified trust must contact 
the Office of Government Ethics prior to beginning the process of 
creating the trust. The Office of Government Ethics is the only entity 
that has the authority to certify a qualified trust. Because an 
interested party must propose, for the approval of the Office of 
Government Ethics, an entity to serve as the independent trustee, the 
Office of Government Ethics will explain the requirements that an entity 
must meet in order to qualify as an independent trustee. Such 
information is essential in order for the interested party to interview 
entities for the position of independent trustee. The Office of 
Government Ethics will also explain the restrictions on the 
communications between the interested parties and the proposed trustee.
    (b) Selecting an independent trustee. After consulting with the 
Office of Government Ethics, the interested party may interview entities 
who meet the requirements of Sec.  2634.405(a) in order to find one to 
serve as an independent trustee. At an interview, the interested party 
may ask general questions about the institution, such as how long it has 
been in business, its policies and philosophy in managing assets, the 
types of clients it serves, its prior performance record, and the 
qualifications of the personnel who would be handling the trust. Because 
the purpose of a qualified trust is to give an independent trustee the 
sole responsibility to manage the trust assets without the interested 
party having any knowledge of the identity of the assets in the trust, 
the interested party may communicate his or her general financial 
interests and needs to any institution which he or she interviews. For 
example, the interested party may communicate a preference for 
maximizing income or long-term capital gain or for balancing safety of 
capital with growth. The interested party may not give more specific 
instructions to the proposed trustee, such as instructing it to maintain 
a specific allocation between stocks and bonds, or choosing stocks in a 
particular industry.
    (c) The proposed independent trustee. (1) The entity selected by an 
interested party as a possible trustee must contact the Office of 
Government Ethics to receive guidance on the qualified trust program. 
The Office of Government Ethics will ask the proposed trustee to submit 
a letter describing its past and current contacts, including banking and 
client relationships, with the interested party, spouse, and minor or 
dependent children. The extent of these contacts will determine whether 
the proposed trustee is independent under the Act and this part.
    (2) In addition, an interested party may select an investment 
manager or other fiduciary. Other proposed fiduciaries selected by an 
interested party, such as an investment manager, must meet the 
independence requirements.
    (d) Approval of the independent trustee. If the Director determines 
that the proposed trustee meets the requirements of independence, the 
Director will approve, in writing, that entity as the trustee for the 
qualified trust.
    (e) Confidentiality agreement. If any person other than the 
independent trustee or designated fiduciary has access to information 
that may not be shared with an interested party or that party's 
representative, that person must file a Confidentiality Agreement with 
the Office of Government Ethics. Persons filing a Confidentiality 
Agreement must certify that they will not

[[Page 575]]

make prohibited contacts with an interested party or that party's 
representative.
    (f) Drafting the trust instrument. The representative of the 
interested party will use the model documents provided by the Office of 
Government Ethics to draft the trust instrument. There are two annexes 
to the model trust document: An annex describing any current, 
permissible banking or client relationships between any interested 
parties and the independent trustee or other fiduciaries and an annex 
listing the initial assets that the interested party transfers to the 
trust. Any deviations from the model trust documents must be approved by 
the Director.
    (g) Certification of the trust. The representative then presents the 
unexecuted trust instrument to the Office of Government Ethics for 
review. If the Director finds that the instrument conforms to one of the 
model documents, the Director will certify the qualified trust. After 
certification, the interested party and the independent trustee will 
sign the trust instrument. They will submit a copy of the executed 
instrument to the Office of Government Ethics within 30 days of 
execution. The interested party will then transfer the assets to the 
trust.

    Note to paragraph (g): Existing qualified trusts approved under any 
State law or by the legislative or judicial branches of the Federal 
Government of the United States will not be recertified by the Director. 
Individuals with existing qualified trusts who are required to file a 
financial disclosure report upon entering the executive branch, becoming 
a nominee for a position appointed by the President and subject to 
confirmation by the Senate, or becoming a candidate for President or 
Vice President must file a complete financial disclosure form that 
includes a full disclosure of items in the trust. After filing a 
complete form, the individual may establish a qualified trust under the 
policies and provisions of this rule.



Sec.  2634.405  Standards for becoming an independent trustee 
or other fiduciary.

    (a) Eligible entities. An interested party must select an entity 
that meets the requirements of this part to serve as an independent 
trustee or other fiduciary. The type of entity that is allowed to serve 
as an independent trustee is a financial institution, not more than 10 
percent of which is owned or controlled by a single individual, which 
is:
    (1) A bank, as defined in 12 U.S.C. 1841(c); or
    (2) An investment adviser, as defined in 15 U.S.C. 80b-2(a)(11).

    Note to paragraph (a): By the terms of paragraph (3)(A)(i) of 
section 102(f) of the Act, an individual who is an attorney, a certified 
public accountant, a broker, or an investment advisor is also eligible 
to serve as an independent trustee. However, experience of the Office of 
Government Ethics over the years dictates the necessity of limiting 
service as a trustee or other fiduciary to the financial institutions 
referred to in this paragraph, to maintain effective administration of 
trust arrangements and preserve confidence in the Federal qualified 
trust program. Accordingly, under its authority pursuant to paragraph 
(3)(D) of section 102(f) of the Act, the Office of Government Ethics 
will not approve proposed trustees or other fiduciaries who are not 
financial institutions, except in unusual cases where compelling 
necessity is demonstrated to the Director, in his or her sole 
discretion.

    (b) Orientation. After the interested party selects a proposed 
trustee, that proposed trustee should contact the Office of Government 
Ethics for an orientation about the qualified trust program.
    (c) Independence requirements. The Director will determine that a 
proposed trustee is independent if:
    (1) The entity is independent of and unassociated with any 
interested party so that it cannot be controlled or influenced in the 
administration of the trust by any interested party;
    (2) The entity is not and has not been affiliated with any 
interested party, and is not a partner of, or involved in any joint 
venture or other investment or business with, any interested party; and
    (3) Any director, officer, or employee of such entity:
    (i) Is independent of and unassociated with any interested party so 
that such director, officer, or employee cannot be controlled or 
influenced in the administration of the trust by any interested party;
    (ii) Is not and has not been employed by any interested party, not 
served as a director, officer, or employee of any organization 
affiliated with any interested party, and is not and has not

[[Page 576]]

been a partner of, or involved in any joint venture or other investment 
with, any interested party; and
    (iii) Is not a relative of any interested party.
    (d) Required documents. In order to make this determination, the 
proposed trustee must submit the following documentation to the 
Director:
    (1) A letter describing its past and current contacts, including 
banking and client relationships, with the interested party, spouse, or 
minor or dependent child; and
    (2) A Certificate of Independence, which follows the model 
Certificate of Independence prepared by the Office of Government Ethics. 
Any variation from the model document must be approved by the Director.
    (e) Determination. If the Director determines that the current 
relationships, if any, between the interested party and the independent 
trustee do not violate the independence requirements, these 
relationships will be disclosed in an annex to the trust instrument. No 
additional relationships with the independent trustee may be established 
unless they are approved by the Director.
    (f) Approval of the trustee. If the Director determines that the 
proposed trustee meets applicable requirements, the Office of Government 
Ethics will send the interested parties and their representatives a 
letter indicating its approval of a proposed trustee.
    (g) Revocation. The Director may revoke the approval of a trustee or 
any other designated fiduciary pursuant to the rules of subpart E of 
this part.
    (h) Adding fiduciaries. An independent trustee may employ or consult 
other entities, such as investment counsel, investment advisers, 
accountants, and tax preparers, to assist in any capacity to administer 
the trust or to manage and control the trust assets, if all of the 
following conditions are met:
    (1) When any interested party or any representative of an interested 
party learns about such employment or consultation, the person must sign 
the trust instrument as a party, subject to the prior approval of the 
Director;
    (2) Under all the facts and circumstances, the person is determined 
pursuant to the requirements for eligible entities under paragraphs (a) 
through (f) of this section to be independent of an interested party 
with respect to the trust arrangement;
    (3) The person is instructed by the independent trustee or other 
designated fiduciary not to disclose publicly or to any interested party 
information which might specifically identify current trust assets or 
those assets which have been sold or disposed of from trust holdings, 
other than information relating to the sale or disposition of original 
trust assets in the case of the blind trust; and
    (4) The person is instructed by the independent trustee or other 
designated fiduciary to have no direct communication with respect to the 
trust with any interested party or any representative of an interested 
party, and to make all indirect communications with respect to the trust 
only through the independent trustee, pursuant to Sec.  2634.408(a).



Sec.  2634.406  Initial portfolio.

    (a) Qualified blind trust. (1) An interested party may not place any 
asset in the blind trust that any interested party would be prohibited 
from holding by the Act, by the implementing regulations, or by any 
other applicable Federal law, Executive order, or regulation.
    (2) Except as described in paragraph (a)(1) of this section, an 
interested party may put most types of assets (such as cash, stocks, 
bonds, mutual funds, or real estate) into a qualified blind trust.
    (b) Qualified diversified trust. (1) The initial portfolio may not 
contain securities of entities having substantial activities in an 
employee's primary area of Federal responsibility. If requested by the 
Director, the designated agency ethics official for the employee's 
agency must certify whether the proposed portfolio meets this standard.
    (2) The initial assets of a diversified trust must comprise a well-
diversified portfolio of readily marketable securities.
    (i) A portfolio will be well diversified if:
    (A) The value of the securities concentrated in any particular or 
limited

[[Page 577]]

economic or geographic sector is no more than 20 percent of the total; 
and
    (B) The value of the securities of any single entity (other than the 
United States Government) is no more than five percent of the total.
    (ii) A security will be readily marketable if:
    (A) Daily price quotations for the security appear regularly in 
media, including websites, that publish the information; and
    (B) The trust holds the security in a quantity that does not unduly 
impair liquidity.
    (iii) The interested party or the party's representative must 
provide the Director with a detailed list of the securities proposed for 
inclusion in the portfolio, specifying their fair market value and 
demonstrating that these securities meet the requirements of this 
paragraph. The Director will determine whether the initial assets of the 
trust proposed for certification comprise a widely diversified portfolio 
of readily marketable securities.
    (c) Hybrid qualified trust. A qualified trust may contain both a 
blind portfolio of assets and a diversified portfolio of assets. The 
Office of Government Ethics refers to this arrangement as a hybrid 
qualified trust.



Sec.  2634.407  Certification of qualified trust 
by the Office of Government Ethics.

    (a) General. After the Director approves the independent trustee, 
the interested party or a representative will prepare the trust 
instrument for review by the Director. The representative of the 
interested party will use the model documents provided by the Office of 
Government Ethics to draft the trust instrument. Any deviations from the 
model trust documents must be approved by the Director. No trust will be 
considered qualified for purposes of the Act until the Office of 
Government Ethics certifies the trust prior to execution.
    (b) Certification procedures. (1) After the Director has approved 
the trustee, the interested party or the party's representative must 
submit the following documents to the Office of Government Ethics for 
review:
    (i) A copy of the proposed, unexecuted trust instrument;
    (ii) A list of the assets which the interested party proposes to 
place in the trust; and
    (iii) In the case of a pre-existing trust as described in Sec.  
2634.409 which the interested party asks the Office of Government Ethics 
to certify, a copy of the pre-existing trust instrument and a list of 
that trust's assets categorized as to value in accordance with Sec.  
2634.301(d).
    (2) In order to assure timely trust certification, the interested 
parties and their representatives will be responsible for the 
expeditious submission to the Office of Government Ethics of all 
required documents and responses to requests for information.
    (3) The Director will indicate that he or she has certified the 
trust in a letter to the interested parties or their representatives. 
The interested party and the independent trustee may then execute the 
trust instrument.
    (4) Within 30 days after the trust is certified under this section 
by the Director, the interested party or that party's representative 
must file with the Director a copy of the executed trust instrument and 
all annexed schedules (other than those provisions which relate to the 
testamentary disposition of the trust assets), including a list of the 
assets which were transferred to the trust, categorized as to value of 
each asset in accordance with Sec.  2634.301(d).
    (5) Once a trust is classified as a qualified blind or qualified 
diversified trust in the manner discussed in this section, Sec.  
2634.312(b) applies less inclusive financial disclosure requirements to 
the trust assets.
    (c) Certification standard. A trust will be certified for purposes 
of this subpart only if:
    (1) It is established to the Director's satisfaction that the 
requirements of section 102(f) of the Act and this subpart have been 
met; and
    (2) The Director determines that approval of the trust arrangement 
as a qualified trust is appropriate to assure compliance with applicable 
laws and regulations.

[[Page 578]]

    (d) Revocation. The Director may revoke certification of a trust 
pursuant to the rules of subpart E of this part.



Sec.  2634.408  Administration of a qualified trust.

    (a) General rules on communications between the independent 
fiduciaries and the interested parties. (1) There must be no direct or 
indirect communications with respect to the qualified trust between an 
interested party or the party's representative and the independent 
trustee or any other designated fiduciary with respect to the trust 
unless:
    (i) In the case of the blind trust, the proposed communication is 
approved in advance by the Director and it relates to:
    (A) A distribution of cash or other unspecified assets of the trust;
    (B) The general financial interest and needs of the interested party 
including, but not limited to, a preference for maximizing income or 
long-term capital gain;
    (C) Notification to the independent trustee by the employee that the 
employee is prohibited by a subsequently applicable statute, Executive 
order, or regulation from holding an asset, and to direction to the 
independent trustee that the trust may not hold that asset; or
    (D) Instructions to the independent trustee to sell all of an asset 
which was initially placed in the trust by an interested party, and 
which in the determination of the employee creates a real or apparent 
conflict due to duties the employee subsequently assumed (but nothing 
herein requires such instructions); or
    (ii) In the case of the diversified trust, the proposed 
communication is approved in advance by the Director and it relates to:
    (A) A distribution of cash or other unspecified assets of the trust;
    (B) The general financial interest and needs of the interested party 
including, but not limited to, a preference for maximizing income or 
long-term capital gain; or
    (C) Information, documents, and funds concerning income tax 
obligations arising from sources other than the property held in trust 
that are required by the independent trustee to enable him to file, on 
behalf of an interested party, the personal income tax returns and 
similar tax documents which may contain information relating to the 
trust.
    (2) The person initiating a communication approved under paragraphs 
(a)(1)(i) or (a)(1)(ii) of this section must file a copy of the 
communication with the Director within five days of the date of its 
transmission.

    Note to paragraph (a): By the terms of paragraph (3)(C)(vi) of 
section 102(f) of the Act, communications which solely consist of 
requests for distributions of cash or other unspecified assets of the 
trust are not required to be in writing. Further, there is no statutory 
mechanism for pre-screening of proposed communications. However, 
experience of the Office of Government Ethics over the years dictates 
the necessity of prohibiting any oral communications between the trustee 
and an interested party with respect to the trust and pre-screening all 
proposed written communications, to prevent inadvertent prohibited 
communications and preserve confidence in the Federal qualified trust 
program. Accordingly, under its authority pursuant to paragraph (3)(D) 
of section 102(f) of the Act, the Office of Government Ethics will not 
approve proposed trust instruments that do not contain language 
conforming to this policy, except in unusual cases where compelling 
necessity is demonstrated to the Director, in his or her sole 
discretion.

    (b) Required reports from the independent trustee to the interested 
parties--(1) Quarterly reports. The independent trustee must, without 
identifying specifically an asset or holding, report quarterly to the 
interested parties and their representatives the aggregate market value 
of the assets representing the interested party's interest in the trust. 
The independent trustee must follow the model document for this report 
and must file a copy of the report, within five days of the date of its 
transmission, with the Director.
    (2) Annual report. In the case of a qualified blind trust, the 
independent trustee must, without identifying specifically an asset or 
holding, report annually to the interested parties and their 
representatives the aggregate amount of the trust's income attributable 
to the interested party's beneficial interest in the trust, categorized

[[Page 579]]

in accordance with Sec.  2634.302(b) to enable the employee to complete 
the public financial disclosure form. In the case of a qualified 
diversified trust, the independent trustee must, without identifying 
specifically an asset or holding, report annually to the interested 
parties and their representatives the aggregate amount actually 
distributed from the trust to the interested party or applied for the 
party's benefit. Additionally, in the case of the blind trust, the 
independent trustee must report on Schedule K-1 the net income or loss 
of the trust and any other information necessary to enable the 
interested party to complete an individual tax return. The independent 
trustee must follow the model document for each report and must file a 
copy of the report, within five days of the date of its transmission, 
with the Director.
    (3) Report of sale of asset. In the case of the qualified blind 
trust, the independent trustee must promptly notify the employee and the 
Director when any particular asset transferred to the trust by an 
interested party has been completely disposed of or when the value of 
that asset is reduced to less than $1,000. The independent trustee must 
file a copy of the report, within five days of the date of its 
transmission, with the Director.
    (c) Communications regarding trust and beneficiary taxes. The Act 
establishes special tax filing procedures to be used by the independent 
trustee and the trust beneficiaries in order to maintain the substantive 
separation between trust beneficiaries and trust administrators.
    (1) Trust taxes. Because a trust is a separate entity distinct from 
its beneficiaries, an independent trustee must file an annual fiduciary 
tax return for the trust (IRS Form 1041). The independent trustee is 
prohibited from providing the interested parties and their 
representatives with a copy of the trust tax return.
    (2) Beneficiary taxes. The trust beneficiaries must report income 
received from the trust on their individual tax returns.
    (i) For beneficiaries of qualified blind trusts, the independent 
trustee sends a modified K-1 summarizing trust income in appropriate 
categories to enable the beneficiaries to file individual tax returns. 
The independent trustee is prohibited from providing the interested 
parties or their representatives with the identity of the assets.
    (ii) For beneficiaries of qualified diversified trusts, the Act 
requires the independent trustee to file the individual tax returns on 
behalf of the trust beneficiaries. The interested parties must give the 
independent trustee a power of attorney to prepare and file, on their 
behalf, the personal income tax returns and similar tax documents which 
may contain information relating to the trust. Appropriate Internal 
Revenue Service power of attorney forms will be used for this purpose. 
The beneficiaries must transmit to the trustee materials concerning 
taxable transactions and occurrences outside of the trust, pursuant to 
the requirements in each trust instrument which detail this procedure. 
This communication must be approved in advance by the Director in 
accordance with paragraph (a) of this section.
    (iii) Some qualified trust beneficiaries may pay estimated income 
taxes.
    (A) In order to pay the proper amount of estimated taxes each 
quarter, the beneficiaries of a qualified blind trust will need to 
receive information about the amount of income, if any, generated by the 
trust each quarter. To assist the beneficiaries, the independent trustee 
is permitted to send, on a quarterly basis, information about the amount 
of income generated by the trust in that quarter. This communication 
must be approved in advance by the Director in accordance with paragraph 
(a) of this section.
    (B) In order to pay the proper amount of estimated taxes each 
quarter, the independent trustee of a qualified diversified trust will 
need to receive information about the amount of income, if any, earned 
by the beneficiaries on assets that are not in the trust. To assist the 
independent trustee, the beneficiaries are permitted to send, on a 
quarterly basis, information about the amount of income they earned in 
that quarter on assets that are outside of the trust. This communication 
must be approved in advance

[[Page 580]]

by the Director in accordance with paragraph (a) of this section.
    (d) Responsibilities of the independent trustee and other 
fiduciaries. (1) Any independent trustee or any other designated 
fiduciary of a qualified trust may not knowingly and willfully, or 
negligently:
    (i) Disclose any information to an interested party or that party's 
representative with respect to the trust that may not be disclosed under 
title I of the Act, the implementing regulations, or the trust 
instrument;
    (ii) Acquire any holding:
    (A) Directly from an interested party or that party's representative 
without the prior written approval of the Director; or
    (B) The ownership of which is prohibited by, or not in accordance 
with, title I of the Act, the implementing regulations, the trust 
instrument, or with other applicable statutes and regulations;
    (iii) Solicit advice from any interested party or any representative 
of that party with respect to such trust, which solicitation is 
prohibited by title I of the Act, the implementing regulations, or the 
trust instrument; or
    (iv) Fail to file any document required by the implementing 
regulations or the trust instrument.
    (2) The independent trustee and any other designated fiduciary, in 
the exercise of their authority and discretion to manage and control the 
assets of the trust, may not consult or notify any interested party or 
that party's representative.
    (3) The independent trustee may not acquire by purchase, grant, 
gift, exercise of option, or otherwise, without the prior written 
approval of the Director, securities, cash, or other property from any 
interested party or any representative of an interested party.
    (4) Certificate of Compliance. An independent trustee and any other 
designated fiduciary must file, with the Director by May 15 following 
any calendar year during which the trust was in existence, a properly 
executed Certificate of Compliance that follows the model Certificate of 
Compliance prepared by the Office of Government Ethics. Any variation 
from the model must be approved by the Director.
    (5) In addition, the independent trustee and such fiduciary must 
maintain and make available for inspection by the Office of Government 
Ethics, as it may from time to time direct, the trust's books of account 
and other records and copies of the trust's tax returns for each taxable 
year of the trust.
    (e) Responsibilities of the interested parties and their 
representatives. (1) Interested parties to a qualified trust and their 
representatives may not knowingly and willfully, or negligently:
    (i) Solicit or receive any information about the trust that may not 
be disclosed under title I of the Act, the implementing regulations or 
the trust instrument; or
    (ii) Fail to file any document required by this subpart or the trust 
instrument.
    (2) The interested parties and their representatives may not take 
any action to obtain, and must take reasonable action to avoid 
receiving, information with respect to the holdings and the sources of 
income of the trust, including a copy of any trust tax return filed by 
the independent trustee, or any information relating to that return, 
except for the reports and information specified in paragraphs (b) and 
(c) of this section.
    (3) In the case of any qualified trust, the interested party must, 
within 30 days of transferring an asset, other than cash, to a 
previously established qualified trust, file a report with the Director, 
which identifies each asset, categorized as to value in accordance with 
Sec.  2634.301(d).
    (4) Any portfolio asset transferred to the trust by an interested 
party must be free of any restriction with respect to its transfer or 
sale, except as fully described in schedules attached to the trust 
instrument, and as approved by the Director.
    (5) During the term of the trust, the interested parties may not 
pledge, mortgage, or otherwise encumber their interests in the property 
held by the trust.
    (f) Amendment of the trust. The independent trustee and the 
interested parties may amend the terms of a qualified trust only with 
the prior written approval of the Director and upon a

[[Page 581]]

showing of necessity and appropriateness.



Sec.  2634.409  Pre-existing trusts.

    An interested party may place a pre-existing irrevocable trust into 
a qualified trust, which may then be certified by the Office of 
Government Ethics. This arrangement should be considered in the case of 
a pre-existing trust whose terms do not permit amendments that are 
necessary to satisfy the rules of this subpart. All of the relevant 
parties (including the employee, any other interested parties, the 
trustee of the pre-existing trust, and all of the other parties and 
beneficiaries of the pre-existing trust) will be required pursuant to 
section 102(f)(7) of the Act to enter into an umbrella trust agreement. 
The umbrella trust agreement will specify that the pre-existing trust 
will be administered in accordance with the provisions of this subpart. 
A parent or guardian may execute the umbrella trust agreement on behalf 
of a required participant who is a minor child. The Office of Government 
Ethics has prepared model umbrella trust agreements that the interested 
party can use in this circumstance. The umbrella trust agreement will be 
certified as a qualified trust if all of the requirements of this 
subpart are fulfilled under conditions where required confidentiality 
with respect to the trust can be assured.



Sec.  2634.410  Dissolution.

    Within 30 days of dissolution of a qualified trust, the interested 
party must file a report of the dissolution with the Director and a list 
of assets of the trust at the time of the dissolution, categorized as to 
value in accordance with Sec.  2634.301(d).



Sec.  2634.411  Reporting on financial disclosure reports.

    An employee who files a public or confidential financial disclosure 
report must report the trust on the financial disclosure report.
    (a) Public financial disclosure report. If the employee files a 
public financial disclosure report, the employee must report the trust 
as an asset, including the overall category of value of the trust. 
Additionally, in the case of a qualified blind trust, the employee must 
disclose the category of value of income earned by the trust. In the 
case of a qualified diversified trust, the employee must report the 
category of value of income received from the trust by the employee, the 
employee's spouse, or dependent child, or applied for the benefit of any 
of them.
    (b) Confidential financial disclosure report. In the case of a 
confidential financial disclosure report, the employee must report the 
trust as an asset.



Sec.  2634.412  Sanctions and enforcement.

    Section 2634.702 sets forth civil sanctions, as provided by sections 
102(f)(6)(C)(i) and (ii) of the Act and as adjusted in accordance with 
the Federal Civil Penalties Inflation Adjustment Act, which apply to any 
interested party, independent trustee, or other trust fiduciary who 
violates the obligations under the Act, its implementing regulations, or 
the trust instrument. Subpart E of this part delineates the procedure 
which must be followed with respect to the revocation of trust 
certificates and trustee approvals.



Sec.  2634.413  Public access.

    (a) Documents subject to public disclosure requirements. The 
following qualified trust documents filed by a public filer, nominee, or 
candidate are subject to the public disclosure requirements of Sec.  
2634.603:
    (1) The executed trust instrument and any amendments (other than 
those provisions which relate to the testamentary disposition of the 
trust assets), and a list of the assets which were transferred to the 
trust, categorized as to the value of each asset;
    (2) The identity of each additional asset (other than cash) 
transferred to a qualified trust by an interested party during the life 
of the trust, categorized as to the value of each asset;
    (3) The report of the dissolution of the trust and a list of the 
assets of the trust at the time of the dissolution, categorized as to 
the value of each asset;
    (4) In the case of a blind trust, the lists provided by the 
independent trustee of initial assets placed in the trust by an 
interested party which have been

[[Page 582]]

sold or whose value is reduced to less than $1,000; and
    (5) The Certificates of Independence and Compliance.
    (b) Documents exempt from public disclosure requirements. The 
following documents are exempt from the public disclosure requirements 
of Sec.  2634.603 and also may not be disclosed to any interested party:
    (1) Any document (and the information contained therein) filed under 
the requirements of Sec.  2634.408(a) and (c); and
    (2) Any document (and the information contained therein) inspected 
under the requirements of Sec.  2634.408(d)(4) (other than a Certificate 
of Compliance).



Sec.  2634.414  OMB control number.

    The various model trust documents and Certificates of Independence 
and Compliance referenced in this subpart, together with the underlying 
regulatory provisions, are all approved by the Office of Management and 
Budget under control number 3209-0007.



    Subpart E_Revocation of Trust Certificates and Trustee Approvals



Sec.  2634.501  Purpose and scope.

    (a) Purpose. This subpart establishes the procedures of the Office 
of Government Ethics for enforcement of the qualified blind trust, 
qualified diversified trust, and independent trustee provisions of title 
I of the Ethics in Government Act of 1978, as amended, and the 
regulation issued thereunder (subpart D of this part).
    (b) Scope. This subpart applies to all trustee approvals and trust 
certifications pursuant to Sec. Sec.  2634.405 and 2634.407, 
respectively.



Sec.  2634.502  Definitions.

    For purposes of this subpart (unless otherwise indicated), the term 
``trust restrictions'' means the applicable provisions of title I of the 
Ethics in Government Act of 1978, subpart D of this part, and the trust 
instrument.



Sec.  2634.503  Determinations.

    (a) Violations. If the Office of Government Ethics learns that 
violations or apparent violations of the trust restrictions exist that 
may warrant revocations of trust certification or trustee approval 
previously granted under Sec.  2634.407 or Sec.  2634.405, the Director 
may, pursuant to the procedure specified in paragraph (b) of this 
section, appoint an attorney on the staff of the Office of Government 
Ethics to review the matter. After completing the review, the attorney 
will submit findings and recommendations to the Director.
    (b) Review procedure. (1) In the review of the matter, the attorney 
will perform such examination and analysis of violations or apparent 
violations as the attorney deems reasonable.
    (2) The attorney will provide an independent trustee and, if 
appropriate, the interested parties, with:
    (i) Notice that revocation of trust certification or trustee 
approval is under consideration pursuant to the procedures in this 
subpart;
    (ii) A summary of the violation or apparent violations that will 
state the preliminary facts and circumstances of the transactions or 
occurrences involved with sufficient particularity to permit the 
recipients to determine the nature of the allegations; and
    (iii) Notice that the recipients may present evidence and submit 
statements on any matter in issue within 10 business days of the 
recipient's actual receipt of the notice and summary.
    (c) Determination. (1) In making determinations with respect to the 
violations or apparent violations under this section, the Director will 
consider the findings and recommendations submitted by the attorney, as 
well as any written statements submitted by the independent trustee or 
interested parties.
    (2) The Director may take one of the following actions upon finding 
a violation or violations of the trust restrictions:
    (i) Issue an order revoking trust certification or trustee approval;
    (ii) Resolve the matter through any other remedial action within the 
Director's authority;
    (iii) Order further examination and analysis of the violation or 
apparent violation; or
    (iv) Decline to take further action.

[[Page 583]]

    (3) If the Director issues an order of revocation, parties to the 
trust instrument will receive prompt written notification. The notice 
will state the basis for the revocation and will inform the parties of 
the consequence of the revocation, which will be either of the 
following:
    (i) The trust is no longer a qualified blind or qualified 
diversified trust for any purpose under Federal law; or
    (ii) The independent trustee may no longer serve the trust in any 
capacity and must be replaced by a successor, who is subject to the 
prior written approval of the Director.



                           Subpart F_Procedure



Sec.  2634.601  Report forms.

    (a) This section prescribes the required forms for financial 
disclosure made pursuant to this part.
    (1) New entrant, annual, and termination public financial disclosure 
reports. The Office of Government Ethics provides a form for publicly 
disclosing the information described in subpart B of this part in 
connection with new entrant, nominee, incumbent, and termination reports 
filed pursuant to Sec.  2634.201(a) through (e). That form is the OGE 
Form 278e (Executive Branch Personnel Public Financial Disclosure 
Report) or any successor form.
    (2) Periodic transaction public financial disclosure reports. The 
Office of Government Ethics provides a form for publicly disclosing the 
information described in subpart B of this part in connection with 
periodic transaction public financial disclosure reports filed pursuant 
to Sec.  2634.201(f). That form is the OGE Form 278-T (Periodic 
Transaction Report), or any successor form.
    (3) Confidential financial disclosure reports. The Office of 
Government Ethics also provides a form for confidentially disclosing 
information described in subpart I of this part in connection with 
confidential financial disclosure reports filed pursuant to Sec.  
2634.903. That form is the OGE Form 450 (Confidential Financial 
Disclosure Report), or any successor form.
    (b) Supplies of the OGE Form 278e, OGE Form 278-T, and OGE Form 450 
are to be reproduced locally by each agency. The Office of Government 
Ethics has published copies on its official website.
    (c) Subject to the prior written approval of the Director of the 
Office of Government Ethics, an agency may require employees to file 
additional confidential financial disclosure forms which supplement the 
standard form referred to in paragraph (a)(3) of this section, if 
necessary because of special or unique agency circumstances. The 
Director may approve such agency forms when, in his opinion, the 
supplementation is shown to be necessary for a comprehensive and 
effective agency ethics program to identify and resolve conflicts of 
interest. See Sec. Sec.  2634.103 and 2634.901.
    (d) The information collection and recordkeeping requirements have 
been approved by the Office of Management and Budget under control 
number 3209-0001 for the OGE Form 278e, and control number 3209-0006 for 
OGE Form 450. OGE Form 278-T has been determined not to require an OMB 
paperwork control number, as the form is used exclusively by current 
Government employees.



Sec.  2634.602  Filing of reports.

    (a) Except as otherwise provided in this section, the reporting 
individual will file financial disclosure reports required under this 
part with the designated agency ethics official or the delegate at the 
agency where the individual is employed, or was employed immediately 
prior to termination of employment, or in which the individual will 
serve, unless otherwise directed by the employee's home agency. 
Detailees will file with their home agency. Reports are due at the times 
indicated in Sec.  2634.201 (public disclosure) or Sec.  2634.903 
(confidential disclosure), unless an extension is granted pursuant to 
the provisions of subparts B or I of this part. Filers must certify that 
the information contained in the report is true, correct, and complete 
to their best knowledge.
    (b) The President, the Vice President, any independent counsel, and 
persons appointed by independent counsel under 28 U.S.C. chapter 40, 
will file the public financial disclosure reports required under this 
part with the Director of the Office of Government Ethics.

[[Page 584]]

    (c)(1) Each agency receiving the public financial disclosure reports 
required to be filed under this part by the following individuals must 
transmit copies to the Director of the Office of Government Ethics:
    (i) The Postmaster General;
    (ii) The Deputy Postmaster General;
    (iii) The Governors of the Board of Governors of the United States 
Postal Service;
    (iv) The designated agency ethics official;
    (v) Employees of the Executive Office of the President who are 
appointed under 3 U.S.C. 105(a)(2)(A) or (B) or 3 U.S.C. 107(a)(1)(A) or 
(b)(1)(A)(i), and employees of the Office of Vice President who are 
appointed under 3 U.S.C. 106(a)(1)(A) or (B); and
    (vi) Officers and employees in, and nominees to, offices or 
positions which require confirmation by the Senate, other than members 
of the uniformed services.
    (2) Prior to transmitting a copy of a report to the Director of the 
Office of Government Ethics, the designated agency ethics official or 
the delegate must review that report in accordance with Sec.  2634.605, 
except for the designated agency ethics official's own report, which 
must be reviewed by the agency head or by a delegate of the agency head.
    (3) For nominee reports, the Director of the Office of Government 
Ethics must forward a copy to the Senate committee that is considering 
the nomination. See Sec.  2634.605(c) for special procedures regarding 
the review of such reports.
    (d) The Director of the Office of Government Ethics must file the 
Director's financial disclosure report with the Office of Government 
Ethics, which will make it immediately available to the public in 
accordance with this part.
    (e) Candidates for President and Vice President identified in Sec.  
2634.201(d), other than an incumbent President or Vice President, must 
file their financial disclosure reports with the Federal Election 
Commission, which will review and send copies of such reports to the 
Director of the Office of Government Ethics.
    (f) Members of the uniformed services identified in Sec.  
2634.202(c) must file their financial disclosure reports with the 
Secretary concerned, or the Secretary's delegate.



Sec.  2634.603  Custody of and access to public reports.

    (a) Each agency must make available to the public in accordance with 
the provisions of this section those public reports filed with the 
agency by reporting individuals described under subpart B of this part.
    (b) This section does not require public availability of those 
reports filed by:
    (1) Any individual in the Office of the Director of National 
Intelligence, the Central Intelligence Agency, the Defense Intelligence 
Agency, the National Geospatial-Intelligence Agency, or the National 
Security Agency, or any individual engaged in intelligence activities in 
any agency of the United States, if the President finds or has found 
that, due to the nature of the office or position occupied by that 
individual, public disclosure of the report would, by revealing the 
identity of the individual or other sensitive information, compromise 
the national interest of the United States. Individuals referred to in 
this paragraph who are exempt from the public availability requirement 
may also be authorized, notwithstanding Sec.  2634.701, to file any 
additional reports necessary to protect their identity from public 
disclosure, if the President finds or has found that such filings are 
necessary in the national interest; or
    (2) An independent counsel whose identity has not been disclosed by 
the Court under 28 U.S.C chapter 40, or any person appointed by that 
independent counsel under such chapter.
    (c) Each agency will, within 30 days after any public report is 
received by the agency, permit inspection of the report by, or furnish a 
copy of the report to, any person who makes written application as 
provided by agency procedure. Agency reviewing officials and the support 
staffs who maintain the files, the staff of the Office of Government 
Ethics, and Special Agents of the Federal Bureau of Investigation who 
are conducting a criminal inquiry into possible conflict of interest 
violations need not submit an application. The

[[Page 585]]

agency may utilize Office of Government Ethics Form 201 for such 
applications. An application must state:
    (1) The requesting person's name, occupation, and address;
    (2) The name and address of any other person or organization on 
whose behalf the inspection or copy is requested; and
    (3) That the requesting person is aware of the prohibitions on 
obtaining or using the report set forth in paragraph (f) of this 
section.
    (d) Applications for the inspection of or copies of public reports 
will also be made available to the public throughout the period during 
which the report itself is made available, utilizing the procedures in 
paragraph (c) of this section.
    (e) The agency may require a reasonable fee, established by agency 
regulation, to recover the direct cost of reproduction or mailing of a 
public report, excluding the salary of any employee involved. A copy of 
the report may be furnished without charge or at a reduced charge if the 
agency determines that waiver or reduction of the fee is in the public 
interest. The criteria used by an agency to determine when a fee will be 
reduced or waived will be established by regulation. Agency regulations 
contemplated by paragraph (e) of this section do not require approval 
pursuant to Sec.  2634.103.
    (f) It is unlawful for any person to obtain or use a public report:
    (1) For any unlawful purpose;
    (2) For any commercial purpose, other than by news and 
communications media for dissemination to the general public;
    (3) For determining or establishing the credit rating of any 
individual; or
    (4) For use, directly or indirectly, in the solicitation of money 
for any political, charitable, or other purpose.

    Example 1: The deputy general counsel of Agency X is responsible for 
reviewing the public financial disclosure reports filed by persons 
within that agency. The agency personnel director, who does not exercise 
functions within the ethics program, wishes to review the disclosure 
report of an individual within the agency. The personnel director must 
file an application to review the report. However, the supervisor of an 
official with whom the deputy general counsel consults concerning 
matters arising in the review process need not file such an application.
    Example 2: A state law enforcement agent is conducting an 
investigation which involves the private financial dealings of an 
individual who has filed a public financial disclosure report. The agent 
must complete a written application in order to inspect or obtain a 
copy.
    Example 3: A financial institution has received an application for a 
loan from an official which indicates her present financial status. The 
official has filed a public financial disclosure statement with her 
agency. The financial institution cannot be given access to the 
disclosure form for purposes of verifying the information contained on 
the application.

    (g)(1) Any public report filed with an agency or transmitted to the 
Director of the Office of Government Ethics under this section will be 
retained by the agency, and by the Office of Government Ethics when it 
receives a copy. The report will be made available to the public for a 
period of six years after receipt. After the six-year period, the report 
must be destroyed unless needed in an ongoing investigation, except that 
in the case of an individual who filed the report pursuant to Sec.  
2634.201(c) as a nominee and was not subsequently confirmed by the 
Senate, or who filed the report pursuant to Sec.  2634.201(d) as a 
candidate and was not subsequently elected, the report, unless needed in 
an ongoing investigation, must be destroyed one year after the 
individual either is no longer under consideration by the Senate or is 
no longer a candidate for nomination or election to the Office of 
President or Vice President. See also the OGE/GOVT-1 Governmentwide 
executive branch Privacy Act system of records (available for inspection 
at the Office of Government Ethics or on OGE's website, www.oge.gov), as 
well as any applicable agency system of records.
    (2) For purposes of paragraph (g)(1) of this section, in the case of 
a reporting individual with respect to whom a trust has been certified 
under subpart D of this part, a copy of the qualified trust agreement, 
the list of assets initially placed in the trust, and all other publicly 
available documents relating to the trust will be retained and made 
available to the public until the periods for retention of all other 
reports of

[[Page 586]]

the individual have lapsed under paragraph (g)(1) of this section.

(Approved by the Office of Management and Budget under control numbers 
3209-0001 and 3209-0002)



Sec.  2634.604  Custody of and denial of public access to confidential reports.

    (a) Any report filed with an agency under subpart I of this part 
will be retained by the agency for a period of six years after receipt. 
After the six-year period, the report must be destroyed unless needed in 
an ongoing investigation. See also the OGE/GOVT-2 Governmentwide 
executive branch Privacy Act system of records (available for inspection 
at the Office of Government Ethics or on OGE's website, www.oge.gov), as 
well as any applicable agency system of records.
    (b) The reports filed pursuant to subpart I of this part are 
confidential. No member of the public will have access to such reports, 
except pursuant to the order of a Federal court or as otherwise provided 
under the Privacy Act. See 5 U.S.C. 552a and the OGE/GOVT-2 Privacy Act 
system of records (and any applicable agency system); 5 U.S.C. app. 
(Ethics in Government Act of 1978, section 107(a)); sections 201(d) and 
502(b) of Executive Order 12674, as modified by Executive Order 12731; 
and Sec.  2634.901(d).



Sec.  2634.605  Review of reports.

    (a) In general. The designated agency ethics official will normally 
serve as the reviewing official for reports submitted to the official's 
agency. That responsibility may be delegated, except in the case of 
certification of nominee reports required by paragraph (c) of this 
section. See also Sec.  2634.105(q). The designated agency ethics 
official will note on any report or supplemental report the date on 
which it is received. Except as indicated in paragraph (c) of this 
section, all reports must be reviewed within 60 days after the date of 
filing. Reports that are reviewed by the Director of the Office of 
Government Ethics must be forwarded promptly by the designated agency 
ethics official to the Director. The Director will review the reports 
within 60 days from the date on which they are received by the Office of 
Government Ethics. If additional information is needed, the Director 
will notify the agency. In the event that additional information must be 
obtained from the filer, the agency will require that the filer provide 
that information as promptly as is practical but not more than 30 days 
after the request. Final certification in accordance with paragraph 
(b)(3) of this section may, of necessity, occur later, when additional 
information is being sought or remedial action is being taken under this 
section.
    (b) Responsibilities of reviewing official--(1) Initial review. As a 
part of the initial review, the reviewing official may request an 
intermediate review by the filer's supervisor or another reviewer. In 
the case of a filer who is detailed to another agency for more than 60 
days during the reporting period, the reviewing official will coordinate 
with the ethics official at the agency at which the employee is serving 
the detail if the report reveals a potential conflict of interest.
    (2) Standards of Review. The reviewing official must examine the 
report to determine, to the reviewing official's satisfaction, that:
    (i) Each required part of the report is completed; and
    (ii) No interest or position disclosed on the report violates or 
appears to violate:
    (A) Any applicable provision of chapter 11 of title 18, United 
States Code;
    (B) The Act, as amended, and the implementing regulations;
    (C) Executive Order 12674, as modified by Executive Order 12731, and 
the implementing regulations;
    (D) Any other applicable Executive Order in force at the time of the 
review; or
    (E) Any other agency-specific statute or regulation which governs 
the filer.
    (3) Signature by reviewing official. If the reviewing official is of 
the opinion that the report meets the requirements of paragraph (b)(2) 
of this section, the reviewing official will certify it by signature and 
date. The reviewing official need not audit the report to ascertain 
whether the disclosures are correct. Disclosures will be taken at ``face

[[Page 587]]

value'' as correct, unless there is a patent omission or ambiguity or 
the official has independent knowledge of matters outside the report. 
However, a report which is signed by a reviewing official certifies that 
the filer's agency has reviewed the report, that the reviewing official 
is of the opinion that each required part of the report has been 
completed, and that on the basis of information contained in such report 
the filer is in compliance with applicable laws and regulations noted in 
paragraph (b)(2)(ii) of this section.
    (4) Requests for, and review based on, additional information. If 
the reviewing official believes that additional information is required 
to be reported, the reviewing official will request that any additional 
information be submitted within 30 days from the date of the request, 
unless the reviewing official grants an extension in writing. This 
additional information will be incorporated into the report. If the 
reviewing official concludes, on the basis of the information disclosed 
in the report and any additional information submitted, that the report 
fulfills the requirements of paragraph (b)(2) of this section, the 
reviewing official will sign and date the report.
    (5) Compliance with applicable laws and regulations. If the 
reviewing official concludes that information disclosed in the report 
may reveal a violation of applicable laws and regulations as specified 
in paragraph (b)(2)(ii) of this section, the official must:
    (i) Notify the filer of that conclusion;
    (ii) Afford the filer a reasonable opportunity for an oral or 
written response; and
    (iii) Determine, after considering any response, whether or not the 
filer is then in compliance with applicable laws and regulations 
specified in paragraph (b)(2)(ii) of this section. If the reviewing 
official concludes that the report does fulfill the requirements, the 
reviewing official will sign and date the report. If the reviewing 
official determines that it does not and additional remedial actions are 
required, the reviewing official must:
    (A) Notify the filer of the conclusion;
    (B) Afford the filer an opportunity for personal consultation if 
practicable;
    (C) Determine what remedial action under paragraph (b)(6) of this 
section should be taken to bring the report into compliance with the 
requirements of paragraph (b)(2)(ii) of this section; and
    (D) Notify the filer in writing of the remedial action which is 
needed, and the date by which such action should be taken.
    (6) Remedial action. (i) Except in unusual circumstances, which must 
be fully documented to the satisfaction of the reviewing official, 
remedial action must be completed not later than three months from the 
date on which the filer received notice that the action is required.
    (ii) Remedial action may include, as appropriate:
    (A) Divestiture of a conflicting interest (see subpart J of this 
part);
    (B) Resignation from a position with a non-Federal business or other 
entity;
    (C) Restitution;
    (D) Establishment of a qualified blind or diversified trust under 
the Act and subpart D of this part;
    (E) Procurement of a waiver under 18 U.S.C. 208(b)(1) or (b)(3);
    (F) Recusal; or
    (G) Voluntary request by the filer for transfer, reassignment, 
limitation of duties, or resignation.
    (7) Compliance or referral. (i) If the filer complies with a written 
request for remedial action under paragraph (b)(6) of this section, the 
reviewing official will memorialize what remedial action has been taken. 
The official will also sign and date the report.
    (ii) If the filer does not comply by the designated date with the 
written request for remedial action transmitted under paragraph (b)(6) 
of this section, the reviewing official must, in the case of a public 
filer under subpart B of this part, notify the head of the agency and 
the Office of Government Ethics for appropriate action. Where the filer 
is in a position in the executive branch (other than in the uniformed 
services or the Foreign Service), appointment to which requires the 
advice and consent of the Senate, the Director of the Office of 
Government Ethics shall refer the matter to the President. In the case 
of the Postmaster General or Deputy Postmaster General, the Director

[[Page 588]]

of the Office of Government Ethics shall recommend to the Governors of 
the Board of Governors of the United States Postal Service the action to 
be taken. For confidential filers, the reviewing official will follow 
agency procedures.
    (c) Expedited procedure in the case of individuals appointed by the 
President and subject to confirmation by the Senate. In the case of a 
report filed by an individual described in Sec.  2634.201(c) who is 
nominated by the President for appointment to a position that requires 
the advice and consent of the Senate:
    (1) In most cases, the Executive Office of the President will 
furnish the applicable financial disclosure report form to the nominee. 
It will forward the completed report to the designated agency ethics 
official at the agency where the nominee is serving or will serve, or it 
may direct the nominee to file the completed report directly with the 
designated agency ethics official.
    (2) The designated agency ethics official will complete an 
accelerated review of the report, in accordance with the standards and 
procedures in paragraph (b) of this section. If that official concludes 
that the report reveals no unresolved conflict of interest under 
applicable laws and regulations, the official will:
    (i) Personally certify the report by signature, and date the 
certification;
    (ii) Write an opinion letter to the Director of the Office of 
Government Ethics, personally certifying that there is no unresolved 
conflict of interest under applicable laws and regulations;
    (iii) Provide a copy of any commitment, agreement, or other 
undertaking which is reduced to writing in accordance with subpart H of 
this part; and
    (iv) Transmit the letter and the report to the Director of the 
Office of Government Ethics, within three working days after the 
designated agency ethics official receives the report.

    Note to paragraph (c)(2): The designated agency ethics official's 
certification responsibilities in Sec.  2634.605(c) are nondelegable and 
must be accomplished by him personally, or by the agency's alternate 
designated agency ethics official, in his absence.

    (3) The Director of the Office of Government Ethics will review the 
report and the letter from the designated agency ethics official. If the 
Director is satisfied that no unresolved conflicts of interest exist, 
then the Director will sign and date the report form. The Director will 
then submit the report with a letter to the appropriate Senate 
committee, expressing the Director's opinion whether, on the basis of 
information contained in the report, the nominee has complied with all 
applicable conflict laws and regulations.
    (4) If, in the case of any nominee or class of nominees, the 
expedited procedure specified in this paragraph cannot be completed 
within the time set forth in paragraph (c)(2)(iv) of this section, the 
designated agency ethics official must inform the Director. When 
necessary and appropriate, the Director may modify the rule of that 
paragraph for a nominee or a class of nominees with respect to a 
particular department or agency.



Sec.  2634.606  Updated disclosure of advice-and-consent nominees.

    (a) General rule. Each individual described in Sec.  2634.201(c) who 
is nominated by the President for appointment to a position that 
requires advice and consent of the Senate must submit a letter updating 
the information in the report previously filed under Sec.  2634.201(c) 
through the period ending no more than five days prior to the 
commencement of the first hearing of a Senate Committee considering the 
nomination to all Senate Committees considering the nomination. The 
letter must update the information required with respect to receipt of:
    (1) Outside earned income; and
    (2) Honoraria, as defined in Sec.  2634.105(i).
    (b) Timing. The nominee's letter must be submitted to the Senate 
committees considering the nomination by the agency at or before the 
commencement of the first committee hearing to consider the nomination. 
The agency must also transmit copies of the nominee's letter to the 
designated agency ethics official referred to in Sec.  2634.605(c)(1) 
and to the Office of Government Ethics.
    (c) Additional certification. In each case to which this section 
applies, the Director of the Office of Government Ethics will, at the 
request of the committee considering the nomination,

[[Page 589]]

submit to the committee an opinion letter of the nature described in 
Sec.  2634.605(c)(3) concerning the updated disclosure. If the committee 
requests such a letter, the expedited procedure provided by Sec.  
2634.605(c) will govern review of the updated disclosure, which will be 
deemed a report filed for purposes of that paragraph.



Sec.  2634.607  Advice and opinions.

    To assist employees in avoiding situations in which they might 
violate applicable financial disclosure laws and regulations:
    (a) The Director of the Office of Government Ethics will render 
formal advisory opinions and informal advisory letters on generally 
applicable matters, or on important matters of first impression. See 
also part 2638 of this chapter. The Director will ensure that these 
advisory opinions and letters are compiled, published, and made 
available to agency ethics officials and the public.
    (b) Designated agency ethics officials will offer advice and 
guidance to employees as needed, to assist them in complying with the 
requirements of the Act and this part on financial disclosure.
    (c) 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 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. Where 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. An agency ethics official is 
required by 28 U.S.C. 535 to report any information he receives relating 
to a violation of the criminal code, title 18 of the United States Code.



                           Subpart G_Penalties



Sec.  2634.701  Failure to file or falsifying reports.

    (a) Referral of cases. The head of each agency, each Secretary 
concerned, or the Director of the Office of Government Ethics, as 
appropriate, must refer to the Attorney General the name of any 
individual when there is reasonable cause to believe that such 
individual has willfully failed to file a public report or information 
required on such report, or has willfully falsified any information 
(public or confidential) required to be reported under this part.
    (b) Civil action. The Attorney General may bring a civil action in 
any appropriate United States district court against any individual who 
knowingly and willfully falsifies or who knowingly and willfully fails 
to file or report any information required by filers of public reports 
under subpart B of this part. The court in which the action is brought 
may assess against the individual a civil monetary penalty in any 
amount, not to exceed the amounts set forth in Table 1 to this section, 
as provided by section 104(a) of the Act, as amended, and as adjusted in 
accordance with the inflation adjustment procedures prescribed in the 
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended.

                       Table 1 to Sec.   2634.701
------------------------------------------------------------------------
                     Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 14, 2007 and Nov. 2, 2015      $50,000
Violation occurring after Nov. 2, 2015.....................       60,517
------------------------------------------------------------------------

    (c) Criminal action. An individual may also be prosecuted under 
criminal statutes for supplying false information on any financial 
disclosure report.
    (d) Administrative remedies. The President, the Vice President, the 
Director of the Office of Government Ethics, the Secretary concerned, 
the head of each agency, and the Office of Personnel Management may take 
appropriate personnel or other action in accordance with applicable law 
or regulation

[[Page 590]]

against any individual for failing to file public or confidential 
reports required by this part, for filing such reports late, or for 
falsifying or failing to report required information. This may include 
adverse action under 5 CFR part 752, if applicable.

[83 FR 33981, July 18, 2018, as amended at 84 FR 6054, Feb. 26, 2019]



Sec.  2634.702  Breaches by trust fiduciaries and interested parties.

    (a) The Attorney General may bring a civil action in any appropriate 
United States district court against any individual who knowingly and 
willfully violates the provisions of Sec.  2634.408(d)(1) or (e)(1). The 
court in which the action is brought may assess against the individual a 
civil monetary penalty in any amount, not to exceed the amounts set 
forth in Table 1 to this section, as provided by section 102(f)(6)(C)(i) 
of the Act and as adjusted in accordance with the inflation adjustment 
procedures prescribed in the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended.

                       Table 1 to Sec.   2634.702
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     20,134
------------------------------------------------------------------------

    (b) The Attorney General may bring a civil action in any appropriate 
United States district court against any individual who negligently 
violates the provisions of Sec.  2634.408(d)(1) or (e)(1). The court in 
which the action is brought may assess against the individual a civil 
monetary penalty in any amount, not to exceed the amounts set forth in 
Table 2 to this section, as provided by section 102(f)(6)(C)(ii) of the 
Act and as adjusted in accordance with the inflation adjustment 
procedures of the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended.

                       Table 2 to Sec.   2634.702
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..     $5,500
Violation occurring after Nov. 2, 2015.......................     10,067
------------------------------------------------------------------------


[84 FR 6054, Feb. 26, 2019]



Sec.  2634.703  Misuse of public reports.

    (a) The Attorney General may bring a civil action against any person 
who obtains or uses a report filed under this part for any purpose 
prohibited by section 105(c)(1) of the Act, as incorporated in Sec.  
2634.603(f). The court in which the action is brought may assess against 
the person a civil monetary penalty in any amount, not to exceed the 
amounts set forth in Table 1 to this section, as provided by section 
105(c)(2) of the Act and as adjusted in accordance with the inflation 
adjustment procedures prescribed in the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended.

                       Table 1 to Sec.   2634.703
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     20,134
------------------------------------------------------------------------

    (b) This remedy shall be in addition to any other remedy available 
under statutory or common law.

[84 FR 6054, Feb. 26, 2019]



Sec.  2634.704  Late filing fee.

    (a) In general. In accordance with section 104(d) of the Act, any 
reporting individual who is required to file a public financial 
disclosure report by the provisions of this part must remit a late 
filing fee of $200 to the appropriate agency, payable to the U.S. 
Treasury, if such report is filed more than 30 days after the later of:
    (1) The date such report is required to be filed pursuant to the 
provisions of this part; or
    (2) The last day of any filing extension period granted pursuant to 
Sec.  2634.201(g).
    (b) Exceptions. (1) The designated agency ethics official may waive 
the late filing fee if the designated agency ethics official determines 
that the delay in filing was caused by extraordinary circumstances. 
These circumstances include, but are not limited to, the agency's 
failure to notify a filer of the requirement to file the public 
financial disclosure report, which made the delay reasonably necessary.
    (2) Employees requesting a waiver of the late filing fee from the 
designated

[[Page 591]]

agency ethics official must request the waiver in writing. The 
designated agency ethics official's determination must be made in 
writing to the employee with a copy maintained by the agency. The 
designated agency ethics official may consult with the Office of 
Government Ethics prior to approving any waiver of the late filing fee.
    (c) Procedure. (1) Each report received by the agency must be marked 
with the date of receipt. For any report which has not been received by 
the end of the period specified in paragraph (a) of this section, the 
agency will advise the delinquent filer, in writing, that:
    (i) Because the financial disclosure report is more than 30 days 
overdue, a $200 late filing fee will become due at the time of filing, 
by reason of section 104(d) of the Act and Sec.  2634.704;
    (ii) The filer is directed to remit to the agency, with the 
completed report, the $200 fee, payable to the United States Treasury;
    (iii) If the filer fails to remit the $200 fee when filing a late 
report, it will be subject to agency debt collection procedures; and
    (iv) If extraordinary circumstances exist that would justify a 
request for a fee waiver, pursuant to paragraph (b) of this section, 
such request and any supporting documentation must be submitted 
immediately.
    (2) Upon receipt from the reporting individual of the $200 late 
filing fee, the collecting agency will note the payment in its records, 
and will then forward the money to the U.S. Treasury for deposit as 
miscellaneous receipts, in accordance with 31 U.S.C. 3302 and Part 5 of 
Volume 1 of the Treasury Financial Manual. If payment is not 
forthcoming, agency debt collection procedures may be utilized, which 
may include salary or administrative offset, initiation of a tax refund 
offset, or other authorized action.
    (d) Late filing fee not exclusive remedy. The late filing fee is in 
addition to other sanctions which may be imposed for late filing. See 
Sec.  2634.701.
    (e) Confidential filers. The late filing fee does not apply to 
confidential filers. Late filing of confidential reports will be handled 
administratively under Sec.  2634.701(d).
    (f) Date of filing. The date of filing for purposes of determining 
whether a public financial disclosure report is filed more than 30 days 
late under this section will be the date of receipt by the agency, which 
should be noted on the report in accordance with Sec.  2634.605(a). The 
30-day grace period on imposing a late filing fee is adequate allowance 
for administrative delays in the receipt of reports by an agency.



                       Subpart H_Ethics Agreements



Sec.  2634.801  Scope.

    This subpart applies to ethics agreements made by any reporting 
individual under either subpart B or I of this part, to resolve 
potential or actual conflicts of interest.



Sec.  2634.802  Requirements.

    (a) Ethics agreement defined. The term ethics agreement will 
include, for the purposes of this subpart, any oral or written promise 
by a reporting individual to undertake specific actions in order to 
alleviate an actual or apparent conflict of interest, such as:
    (1) Recusal;
    (2) Divestiture of a financial interest;
    (3) Resignation from a position with a non-Federal business or other 
entity;
    (4) Procurement of a waiver pursuant to 18 U.S.C. 208(b)(1) or 
(b)(3); or
    (5) Establishment of a qualified blind or diversified trust under 
the Act and subpart D of this part.
    (b) Time limit. The ethics agreement will specify that the 
individual must complete the action which he or she has agreed to 
undertake within a period not to exceed three months from the date of 
the agreement (or of Senate confirmation, if applicable). Exceptions to 
the three-month deadline can be made in cases of unusual hardship, as 
determined by the Office of Government Ethics, for those ethics 
agreements which are submitted to it (see Sec.  2634.803), or by the 
designated agency ethics official for all other ethics agreements.

    Example: An official of the ABC Aircraft Company is nominated to a 
Department of Defense position requiring the advice and consent of the 
Senate. As a condition of assuming the position, the individual has 
agreed to divest himself of his ABC Aircraft

[[Page 592]]

stock which he recently acquired while he was an officer with the 
company. However, the Securities and Exchange Commission prohibits 
officers of public corporations from deriving a profit from the sale of 
stock in the corporation in which they hold office within six months of 
acquiring the stock, and directs that any such profit must be returned 
to the issuing corporation or its stock holders. Since meeting the usual 
three-month time limit specified in this subpart for satisfying an 
ethics agreement might entail losing any profit that could be realized 
on the sale of this stock, the nominee requests that the limit be 
extended beyond the six-month period imposed by the Commission. Written 
approval must be obtained from the Office of Government Ethics to extend 
the three-month period.



Sec.  2634.803  Notification of ethics agreements.

    (a) Nominees to positions requiring the advice and consent of the 
Senate. (1) In the case of a nominee referred to in Sec.  2634.201(c), 
the designated agency ethics official will include with the report 
submitted to the Office of Government Ethics any ethics agreement which 
the nominee has made.
    (2) A designated agency ethics official must immediately notify the 
Office of Government Ethics of any ethics agreement of a nominee which 
is made or becomes known to the designated agency ethics official after 
the submission of the nominee's report to the Office of Government 
Ethics. This requirement includes an ethics agreement made between a 
nominee and the Senate confirmation committee. The nominee must 
immediately report to the designated agency ethics official any ethics 
agreement made with the committee.
    (3) The Office of Government Ethics must immediately apprise the 
designated agency ethics official and the Senate confirmation committee 
of any ethics agreements made directly between the nominee and the 
Office of Government Ethics.
    (4) Any ethics agreement approved by the Office of Government Ethics 
during its review of a nominee's financial disclosure report may not be 
modified without prior approval from the Office of Government Ethics.
    (b) Incumbents and other reporting individuals. Incumbents and other 
reporting individuals may be required to enter into an ethics agreement 
with the designated agency ethics official for the employee's agency. 
Where an ethics agreement has been made with someone other than the 
designated agency ethics official, the officer or employee involved must 
promptly apprise the designated agency ethics official of the agreement.



Sec.  2634.804  Evidence of compliance.

    (a) Requisite evidence of action taken. (1) For ethics agreements of 
nominees to positions requiring the advice and consent of the Senate, 
evidence of any action taken to comply with the terms of such ethics 
agreements must be submitted to the designated agency ethics official. 
The designated agency ethics official will promptly notify the Office of 
Government Ethics and the Senate confirmation committee of actions taken 
to comply with the ethics agreement.
    (2) In the case of incumbents and all other reporting individuals, 
evidence of any action taken to comply with the terms of an ethics 
agreement must be sent promptly to the designated agency ethics 
official.
    (b) The following materials and any other appropriate information 
constitute evidence of the action taken:
    (1) Recusal. A copy of a recusal statement listing and describing 
the specific matters or subjects to which the recusal applies, a 
statement of the method by which the agency will enforce the recusal. A 
recusal statement is not required for a general affirmation that the 
filer will comply with ethics laws.

    Example: A new employee of a Federal safety board owns stock in 
Nationwide Airlines. She has entered into an ethics agreement to recuse 
herself from participating in any accident investigations involving that 
company's aircraft until such time as she can complete a divestiture of 
the asset. She sends an email to the designated agency ethics official 
recusing herself from Nationwide Airline matters. She sends an email to 
her supervisor and subordinates to notify them of the recusal and to 
request that they do not refer matters involving Nationwide Airlines to 
her. She also sends a copy of that email to the designated agency ethics 
official.


[[Page 593]]


    (2) Divestiture or resignation. Written notification that the 
divestiture or resignation has occurred.
    (3) Waivers. A copy of any waivers issued pursuant to 18 U.S.C. 
208(b)(1) or (b)(3) and signed by the appropriate supervisory official.
    (4) Blind or diversified trusts. Information required by subpart D 
of this part to be submitted to the Office of Government Ethics for its 
certification of any qualified trust instrument. If the Office of 
Government Ethics does not certify the trust, the designated agency 
ethics official and, as appropriate, the Senate confirmation committee 
should be informed immediately.



Sec.  2634.805  Retention.

    Records of ethics agreements and actions described in this subpart 
will be maintained by the agency. In addition, copies of such record 
will be maintained by the Office of Government Ethics with respect to 
filers whose reports are certified by the Office of Government Ethics.



           Subpart I_Confidential Financial Disclosure Reports



Sec.  2634.901  Policies of confidential financial disclosure reporting.

    (a) The confidential financial reporting system set forth in this 
subpart is designed to complement the public reporting system 
established by title I of the Act. High-level officials in the executive 
branch are required to report certain financial interests publicly to 
ensure that every citizen can have confidence in the integrity of the 
Federal Government. It is equally important in order to guarantee the 
efficient and honest operation of the Government that other, less 
senior, executive branch employees, whose Government duties involve the 
exercise of significant discretion in certain sensitive areas, report 
their financial interests and outside business activities to their 
employing agencies, to facilitate the review of possible conflicts of 
interest. These reports assist an agency in administering its ethics 
program and counseling its employees. Such reports are filed on a 
confidential basis.
    (b) The confidential reporting system seeks from employees only that 
information which is relevant to the administration and application of 
criminal conflict of interest laws, administrative standards of conduct, 
and agency-specific statutory and program-related restrictions. The 
basic content of the reports required by Sec.  2634.907 reflects that 
certain information is generally relevant to all agencies. However, 
depending upon an agency's authorized activities and any special or 
unique circumstances, additional information may be necessary. In these 
situations, and subject to the prior written approval of the Director of 
the Office of Government Ethics, agencies may formulate supplemental 
reporting requirements by following the procedures of Sec. Sec.  
2634.103 and 2634.601(b).
    (c) This subpart also allows an agency to request, on a confidential 
basis, additional information from persons who are already subject to 
the public reporting requirements of this part. The public reporting 
requirements of the Act address Governmentwide concerns. The reporting 
requirements of this subpart allow agencies to confront special or 
unique agency concerns. If those concerns prompt an agency to seek more 
extensive reporting from employees who file public reports, it may 
proceed on a confidential, nonpublic basis, with prior written approval 
from the Director of the Office of Government Ethics, under the 
procedures of Sec. Sec.  2634.103 and 2634.601(b).
    (d) The reports filed pursuant to this subpart are specifically 
characterized as ``confidential,'' and are required to be withheld from 
the public, pursuant to section 107(a) of the Act. Section 107(a) leaves 
no discretion on this issue with the agencies. See also Sec.  2634.604. 
Further, Executive Order 12674 as modified by Executive Order 12731 
provides, in section 201(d), for a system of nonpublic (confidential) 
executive branch financial disclosure to complement the Act's system of 
public disclosure. The confidential reports provided for by this subpart 
contain sensitive commercial and financial information, as well as 
personal privacy-protected information. These reports and the 
information which they contain are, accordingly, exempt from being 
released to the public, under exemptions 3(A) and (B), 4, and 6 of the

[[Page 594]]

Freedom of Information Act (FOIA), 5 U.S.C. 552(b)(3)(A) and (B), 
(b)(4), and (b)(6). Additional FOIA exemptions may apply to particular 
reports or portions of reports. Agency personnel will not publicly 
release the reports or the information which these reports contain, 
except pursuant to an order issued by a Federal court, or as otherwise 
provided under applicable provisions of the Privacy Act (5 U.S.C. 552a), 
and in the OGE/GOVT-2 Governmentwide executive branch Privacy Act system 
of records, as well as any applicable agency records system. If an 
agency statute requires the public reporting of certain information and, 
for purposes of convenience, an agency chooses to collect that 
information on the confidential report form filed under this subpart, 
only the special statutory information may be released to the public, 
pursuant to the terms of the statute under which it was collected.
    (e) Executive branch agencies hire or use the paid and unpaid 
services of many individuals on an advisory or other less than full-time 
basis as special Government employees. These employees may include 
experts and consultants to the Government, as well as members of 
Government advisory committees. It is important for those agencies that 
utilize such services, and for the individuals who provide the services, 
to anticipate and avoid real or apparent conflicts of interest. The 
confidential financial disclosure system promotes that goal, with 
special Government employees among those required to file confidential 
reports.
    (f) For additional policies and definitions of terms applicable to 
both the public and confidential reporting systems, see Sec. Sec.  
2634.104 and 2634.105.



Sec.  2634.902  [Reserved]



Sec.  2634.903  General requirements, filing dates, and extensions.

    (a) Incumbents. A confidential filer who holds a position or office 
described in Sec.  2634.904(a) and who performs the duties of that 
position or office for a period in excess of 60 days during the calendar 
year (including more than 60 days in an acting capacity) must file a 
confidential report as an incumbent, containing the information 
prescribed in Sec. Sec.  2634.907 and 2634.908 on or before February 15 
of the following year. This requirement does not apply if the employee 
has left Government service or has left a covered position prior to the 
due date for the report. No incumbent reports are required of special 
Government employees described in Sec.  2634.904(a)(2), but who must 
file new entrant reports under paragraph (b) of this section upon each 
appointment or reappointment. For confidential filers under Sec.  
2634.904(a)(3), consult agency supplemental regulations.
    (b) New entrants. (1) Not later than 30 days after assuming a new 
position or office described in Sec.  2634.904(a) (which also 
encompasses the reappointment or redesignation of a special Government 
employee, including one who is serving on an advisory committee), a 
confidential filer must file a confidential report containing the 
information prescribed in Sec. Sec.  2634.907 and 2634.908. For 
confidential filers under Sec.  2634.904(a)(3), consult agency 
supplemental regulations.
    (2) However, no report will be required if the individual:
    (i) Has, within 30 days prior to assuming the position, left another 
position or office referred to in Sec.  2634.904(a) or in Sec.  
2634.202, and has previously satisfied the reporting requirements 
applicable to that former position, but a copy of the report filed by 
the individual while in that position should be made available to the 
appointing agency, and the individual must comply with any agency 
requirement for a supplementary report for the new position;
    (ii) Has already filed such a report in connection with 
consideration for appointment to the position. The agency may request 
that the individual update such a report if more than six months has 
expired since it was filed; or
    (iii) Is not reasonably expected to perform the duties of an office 
or position referred to in Sec.  2634.904(a) for more than 60 days in 
the following 12-month period, as determined by the designated agency 
ethics official or delegate. That may occur most commonly in the case of 
an employee who temporarily serves in an acting capacity in a position 
described by Sec.  2634.904(a)(1). If the individual actually performs 
the duties of such position for more than 60 days in the 12-month 
period, then a

[[Page 595]]

confidential financial disclosure report must be filed within 15 
calendar days after the sixtieth day of such service in the position. 
Paragraph (b)(2)(iii) of this section does not apply to new entrants 
filing as special Government employees under Sec.  2634.904(a)(2).
    (3) Notwithstanding the filing deadline prescribed in paragraph 
(b)(1) of this section, agencies may at their discretion, require that 
prospective entrants into positions described in Sec.  2634.904(a) file 
their new entrant confidential financial disclosure reports prior to 
serving in such positions, to ensure that there are no insurmountable 
ethics concerns. Additionally, a special Government employee who has 
been appointed to serve on an advisory committee must file the required 
report before any advice is rendered by the employee to the agency, or 
in no event, later than the first committee meeting.
    (c) Advisory committee definition. For purposes of this subpart, the 
term advisory committee will have the meaning given to that term under 
section 3 of the Federal Advisory Committee Act (5 U.S.C. app). 
Specifically, it means any committee, board, commission, council, 
conference, panel, task force, or other similar group which is 
established by statute or reorganization plan, or established or 
utilized by the President or one or more agencies, in the interest of 
obtaining advice or recommendations for the President or one or more 
agencies or officers of the Federal Government. Such term includes any 
subcommittee or other subgroup of any advisory committee, but does not 
include the Advisory Commission on Intergovernmental Relations, the 
Commission on Government Procurement, or any committee composed wholly 
of full-time officers or employees of the Federal Government.
    (d) Extensions--(1) Agency extensions. The agency reviewing official 
may, for good cause shown, grant to any employee or class of employees a 
filing extension or several extensions totaling not more than 90 days.
    (2) Certain service during period of national emergency. In the case 
of an active duty military officer or enlisted member of the Armed 
Forces, a Reserve or National Guard member on active duty under orders 
issued pursuant to title 10 or title 32 of the United States Code, a 
commissioned officer of the Uniformed Services (as defined in 10 U.S.C. 
101), or any other employee, who is deployed or sent to a combat zone or 
required to perform services away from the employee's permanent duty 
station in support of the Armed Forces or other governmental entities 
following a declaration by the President of a national emergency, the 
date of filing will be extended to 90 days after the last day of:
    (i) The employee's service in the combat zone or away from the 
employee's permanent duty station; or
    (ii) The employee's hospitalization as a result of injury received 
or disease contracted while serving during the national emergency.
    (3) Agency procedures. Each agency may prescribe procedures to 
provide for the implementation of the extensions provided for by this 
paragraph.
    (e) Termination reports not required. An employee who is required to 
file a confidential financial disclosure report is not required to file 
a termination report upon leaving the filing position.



Sec.  2634.904  Confidential filer defined.

    (a) The term confidential filer includes:
    (1) Each officer or employee in the executive branch whose position 
is classified at GS-15 or below of the General Schedule prescribed by 5 
U.S.C. 5332, or the rate of basic pay for which is fixed, other than 
under the General Schedule, at a rate which is less than 120% of the 
minimum rate of basic pay for GS-15 of the General Schedule; each 
officer or employee of the United States Postal Service or Postal Rate 
Commission whose basic rate of pay is less than 120% of the minimum rate 
of basic pay for GS-15 of the General Schedule; each member of a 
uniformed service whose pay grade is less than 0-7 under 37 U.S.C. 201; 
and each officer or employee in any other position determined by the 
designated agency ethics official to be of equal classification; if:
    (i) The agency concludes that the duties and responsibilities of the 
employee's position require that employee to

[[Page 596]]

participate personally and substantially (as defined in Sec. Sec.  
2635.402(b)(4) and 2640.103(a)(2) of this chapter) through decision or 
the exercise of significant judgment, and without substantial 
supervision and review, in taking a Government action regarding:
    (A) Contracting or procurement;
    (B) Administering or monitoring grants, subsidies, licenses, or 
other federally conferred financial or operational benefits;
    (C) Regulating or auditing any non-Federal entity; or
    (D) Other activities in which the final decision or action will have 
a direct and substantial economic effect on the interests of any non-
Federal entity; or
    (ii) The agency concludes that the duties and responsibilities of 
the employee's position require the employee to file such a report to 
avoid involvement in a real or apparent conflict of interest, or to 
carry out the purposes behind any statute, Executive order, rule, or 
regulation applicable to or administered by the employee. Positions 
which might be subject to a reporting requirement under this 
subparagraph include those with duties which involve investigating or 
prosecuting violations of criminal or civil law.

    Example 1: A contracting officer develops the requests for proposals 
for data processing equipment of significant value which is to be 
purchased by his agency. He works with substantial independence of 
action and exercises significant judgment in developing the requests. By 
engaging in this activity, he is participating personally and 
substantially in the contracting process. The contracting officer should 
be required to file a confidential financial disclosure report.
    Example 2: An agency environmental engineer inspects a manufacturing 
plant to ascertain whether the plant complies with permits to release a 
certain effluent into a nearby stream. Any violation of the permit 
standards may result in civil penalties for the plant, and in criminal 
penalties for the plant's management based upon any action which they 
took to create the violation. If the agency engineer determines that the 
plant does not meet the permit requirements, he can require the plant to 
terminate release of the effluent until the plant satisfies the permit 
standards. Because the engineer exercises substantial discretion in 
regulating the plant's activities, and because his final decisions will 
have a substantial economic effect on the plant's interests, the 
engineer should be required to file a confidential financial disclosure 
report.
    Example 3: A GS-13 employee at an independent grant making agency 
conducts the initial agency review of grant applications from nonprofit 
organizations and advises the Deputy Assistant Chairman for Grants and 
Awards about the merits of each application. Although the process of 
reviewing the grant applications entails significant judgment, the 
employee's analysis and recommendations are reviewed by the Deputy 
Assistant Chairman, and the Assistant Chairman, before the Chairman 
decides what grants to award. Because his work is subject to 
``substantial supervision and review,'' the employee is not required to 
file a confidential financial disclosure report unless the agency 
determines that filing is necessary under Sec.  2634.904(a)(1)(ii).
    Example 4: As a senior investigator for a criminal law enforcement 
agency, an employee often leads investigations, with substantial 
independence, of suspected felonies. The investigator usually decides 
what information will be contained in the agency's report of the 
suspected misconduct. Because he participates personally and 
substantially through the exercise of significant judgment in 
investigating violations of criminal law, the investigator should be 
required to file a confidential financial disclosure report.

    (2) Unless required to file public financial disclosure reports by 
subpart B of this part, all executive branch special Government 
employees who:
    (i) Have a substantial role in the formulation of agency policy;
    (ii) Serve on a Federal Advisory Committee; or
    (iii) Meet the requirements of paragraph (a)(1) of this section.

    Example 1: A consultant to an agency periodically advises the agency 
regarding important foreign policy matters. The consultant must file a 
confidential report if he is retained as a special Government employee 
and not an independent contractor.
    Example 2: A special Government employee serving as a member of an 
advisory committee (who is not a private group representative) attends 
four committee meetings every year to provide advice to an agency about 
pharmaceutical matters. No compensation is received by the committee 
member, other than travel expenses. The advisory committee member must 
file a confidential disclosure report because she is a special 
Government employee.

    (3) Each public filer referred to in Sec.  2634.202 on public 
disclosure who is required by agency regulations and forms issued in 
accordance with Sec. Sec.  2634.103

[[Page 597]]

and 2634.601(b) to file a supplemental confidential financial disclosure 
report which contains information that is more extensive than the 
information required in the reporting individual's public financial 
disclosure report under this part.
    (4) Any employee who, notwithstanding the employee's exclusion from 
the public financial reporting requirements of this part by virtue of a 
determination under Sec.  2634.203, is covered by the criteria of 
paragraph (a)(1) of this section.
    (b) Any individual or class of individuals described in paragraph 
(a) of this section, including special Government employees unless 
otherwise noted, may be excluded from all or a portion of the 
confidential reporting requirements of this subpart, when the agency 
head or designee determines that the duties of a position make remote 
the possibility that the incumbent will be involved in a real or 
apparent conflict of interest.

    Example 1: A special Government employee who is a draftsman prepares 
the drawings to be used by an agency in soliciting bids for construction 
work on a bridge. Because he is not involved in the contracting process 
associated with the construction, the likelihood that this action will 
create a conflict of interest is remote. As a result, the special 
Government employee is not required to file a confidential financial 
disclosure report.
    Example 2: An agency has just hired aGS-5 Procurement Assistant who 
is responsible for typing and processing procurement documents, 
answering status inquiries from the public, performing office support 
duties such as filing and copying, and maintaining an on-line contract 
database. The Assistant is not involved in contracting and has no other 
actual procurement responsibilities. Thus, the possibility that the 
Assistant will be involved in a real or apparent conflict of interest is 
remote, and the Assistant is not required to file.



Sec.  2634.905  Use of alternative procedures.

    Agencies are encouraged to consider whether an alternative procedure 
would allow the agency to more effectively assess possible conflicts of 
interest. With the prior written approval of OGE, an agency may use an 
alternative procedure in lieu of filing the OGE Form 450. The 
alternative procedure may be an agency-specific form to be filed in 
place thereof. An agency must submit for approval a description of its 
proposed alternative procedure to OGE.

    Example 1: A nonsupervisory auditor at an agency is regularly 
assigned to cases involving possible loan improprieties by financial 
institutions. Prior to undertaking each enforcement review, the auditor 
reviews the file to determine if she has a conflict of interest. After 
determining that she has no conflict of interest, she signs and dates a 
certification which verifies that she has reviewed the file and has made 
such a determination. She then files the certification with the head of 
her auditing division at the agency. On the other hand, if she cannot 
execute the certification, she informs the head of her auditing 
division. In response, the division will either reassign the case or 
review the conflicting interest to determine whether a waiver would be 
appropriate. This alternative procedure, if approved by the Office of 
Government Ethics in writing, may be used in lieu of requiring the 
auditor to file a confidential financial disclosure report.
    Example 2: To reduce its workload, an agency proposes that employees 
may file a statement certifying there has been no change in reportable 
information and no change in the filer's position and duties and 
attaching the most recent OGE Form 450. This alternative procedure, if 
approved by the Office of Government Ethics in writing, may be used in 
lieu of requiring the filer to complete an OGE Form 450.



Sec.  2634.906  Review of confidential filer status.

    The head of each agency, or an officer designated by the head of the 
agency for that purpose, will review any complaint by an individual that 
the individual's position has been improperly determined by the agency 
to be one which requires the submission of a confidential financial 
disclosure report pursuant to this subpart. A decision by the agency 
head or designee regarding the complaint will be final.



Sec.  2634.907  Report contents.

    (a) Other than the reports described in Sec.  2634.904(a)(3), each 
confidential financial disclosure report must comply with instructions 
issued by the Office of Government Ethics and include on the 
standardized form prescribed by OGE (see Sec.  2634.601) the information 
described in paragraphs (b) through (g) of this section for the filer. 
Each report must also include the information described in paragraph (h) 
of this section

[[Page 598]]

for the filer's spouse and dependent children.
    (b) Noninvestment income. Each financial disclosure report must 
disclose the source of earned or other noninvestment income in excess of 
$1,000 received by the filer from any one source during the reporting 
period, including:
    (1) Salaries, fees, commissions, wages and any other compensation 
for personal services (other than from United States Government 
employment);
    (2) Any honoraria, including payments made or to be made to 
charitable organizations on behalf of the filer in lieu of honoraria; 
and

    Note to paragraph (b)(2): In determining whether an honorarium 
exceeds the $1,000 threshold, subtract any actual and necessary travel 
expenses incurred by the filer and one relative, if the expenses are 
paid or reimbursed by the filer. If such expenses are paid or reimbursed 
by the honorarium source, they will not be counted as part of the 
honorarium payment.

    (3) Any other noninvestment income, such as prizes, scholarships, 
awards, gambling income or discharge of indebtedness.

    Example to paragraphs (b)(1) and (b)(3): A filer teaches a course at 
a local community college, for which she receives a salary of $3,000 per 
year. She also received, during the previous reporting period, a $1,250 
award for outstanding local community service. She must disclose both.

    (c) Assets and investment income. Each financial disclosure report 
must disclose separately:
    (1) Each item of real and personal property having a fair market 
value in excess of $1,000 held by the filer at the end of the reporting 
period in a trade or business, or for investment or the production of 
income, including but not limited to:
    (i) Real estate;
    (ii) Stocks, bonds, securities, and futures contracts;
    (iii) Sector mutual funds, sector exchange-traded funds, and other 
pooled investment funds;
    (iv) Pensions and annuities;
    (v) Vested beneficial interests in trusts;
    (vi) Ownership interest in businesses and partnerships; and
    (vii) Accounts receivable.
    (2) The source of investment income (dividends, rents, interest, 
capital gains, or the income from qualified or excepted trusts or 
excepted investment funds (see paragraph (i) of this section)), which is 
received by the filer during the reporting period, and which exceeds 
$1,000 in amount or value from any one source, including but not limited 
to income derived from:
    (i) Real estate;
    (ii) Collectible items;
    (iii) Stocks, bonds, and notes;
    (iv) Copyrights;
    (v) Vested beneficial interests in trusts and estates;
    (vi) Pensions;
    (vii) Sector mutual funds (see definition at Sec.  2640.102(q) of 
this chapter);
    (viii) The investment portion of life insurance contracts;
    (ix) Loans;
    (x) Gross income from a business;
    (xi) Distributive share of a partnership;
    (xii) Joint business venture income; and
    (xiii) Payments from an estate or an annuity or endowment contract.

    Note to paragraphs (c)(1) and (c)(2): For Individual Retirement 
Accounts (IRAs), brokerage accounts, trusts, mutual or pension funds, 
and other entities with portfolio holdings, each underlying asset must 
be separately disclosed, unless the entity qualifies for special 
treatment under paragraph (i) of this section.

    (3) Exceptions. The following assets and investment income are 
excepted from the reporting requirements of paragraphs (c)(1) and (c)(2) 
of this section:
    (i) A personal residence, as defined in Sec.  2634.105(l);
    (ii) Accounts (including both demand and time deposits) in 
depository institutions, including banks, savings and loan associations, 
credit unions, and similar depository financial institutions;
    (iii) Money market mutual funds and accounts;
    (iv) U.S. Government obligations, including Treasury bonds, bills, 
notes, and savings bonds;
    (v) Government securities issued by U.S. Government agencies;

[[Page 599]]

    (vi) Financial interests in any retirement system of the United 
States (including the Thrift Savings Plan) or under the Social Security 
Act;
    (vii) Financial interest in any diversified fund held in any pension 
plan established or maintained by State government or any political 
subdivision of a State government for its employees;
    (viii) A diversified fund in an employee benefit plan; and
    (ix) Diversified mutual funds and unit investment trusts.

    Note to paragraphs (c)(3)(vii) through (ix): For purposes of this 
section, ``diversified'' means that the fund does not have a stated 
policy of concentrating its investments in any industry, business, 
single country other than the United States, or bonds of a single State 
within the United States and, in the case of an employee benefit plan, 
means that the plan's independent trustee has a written policy of 
varying plan investments. Whether a fund meets this standard may be 
determined by checking the fund's prospectus or by calling a broker or 
the manager of the fund.
    Example 1: A filer owns a beach house which he rents out for several 
weeks each summer, receiving annual rental income of approximately 
$5,000. He must report the rental property, as well as the city and 
state in which it is located.
    Example 2: A filer's investment portfolio consists of several 
stocks, U.S. Treasury bonds, several cash bank deposit accounts, an 
account in the Government's Thrift Savings Plan, and shares in sector 
mutual funds and diversified mutual funds. He must report the name of 
each sector mutual fund in which he owns shares, and the name of each 
company in which he owns stock, valued at over $1,000 at the end of the 
reporting period or from which he received income of more than $1,000 
during the reporting period. He need not report his diversified mutual 
funds, U.S. Treasury bonds, bank deposit accounts, or Thrift Savings 
Plan holdings.

    (d) Liabilities. Each financial disclosure report filed pursuant to 
this subpart must identify liabilities in excess of $10,000 owed by the 
filer at any time during the reporting period, and the name and location 
of the creditors to whom such liabilities are owed, except:
    (1) Personal liabilities owed to a spouse or to the parent, brother, 
sister, or child of the filer, spouse, or dependent child;
    (2) Any mortgage secured by a personal residence of the filer or the 
filer's spouse;
    (3) Any loan secured by a personal motor vehicle, household 
furniture, or appliances, provided that the loan does not exceed the 
purchase price of the item which secures it;
    (4) Any revolving charge account;
    (5) Any student loan; and
    (6) Any loan from a bank or other financial institution on terms 
generally available to the public.

    Example: A filer owes $2,500 to his mother-in-law and $12,000 to his 
best friend. He also has a $15,000 balance on his credit card, a 
$200,000 mortgage on his personal residence, and a car loan. Under the 
financial disclosure reporting requirements, he need not report the debt 
to his mother-in-law, his credit card balance, his mortgage, or his car 
loan. He must, however, report the debt of over $10,000 to his best 
friend.

    (e) Positions with non-Federal organizations--(1) In general. Each 
financial disclosure report filed pursuant to this subpart must identify 
all positions held at any time by the filer during the reporting period, 
other than with the United States, as an officer, director, trustee, 
general partner, proprietor, representative, executor, employee, or 
consultant of any corporation, company, firm, partnership, trust, or 
other business enterprise, any nonprofit organization, any labor 
organization, or any educational or other institution.
    (2) Exceptions. The following positions are excepted from the 
reporting requirements of paragraph (e)(1) of this section:
    (i) Positions held in religious, social, fraternal, or political 
entities; and
    (ii) Positions solely of an honorary nature, such as those with an 
emeritus designation.

    Example 1: A filer holds outside positions as the trustee of his 
family trust, the secretary of a local political party committee, and 
the ``Chairman'' of his town's Lions Club. He also is a principal of a 
tutoring school on weekends. The individual must report his outside 
positions as trustee of the family trust and as principal of the school. 
He does not need to report his positions as secretary of the local 
political party committee or ``Chairman'' because each of these 
positions is excepted from disclosure.
    Example 2: An official recently terminated her role as the managing 
member of a limited liability corporation upon appointment to a position 
in the executive branch. The

[[Page 600]]

managing member position must be disclosed in the official's new entrant 
financial disclosure report pursuant to this section.
    Example 3: An official is a member of the board of his church. The 
official does not need to disclose the position in his financial 
disclosure report.
    Example 4: An official is an officer in a fraternal organization 
that exists for the purpose of performing service work in the community. 
The official does not need to disclose this position in her financial 
disclosure report.
    Example 5: An official is the ceremonial Parade Marshal for a local 
town's annual Founders' Day event and, in that capacity, leads a parade 
and serves as Master of Ceremonies for an awards ceremony at the town 
hall. The official does not need to disclose this position in her 
financial disclosure report.
    Example 6: An official recently terminated his role as a campaign 
manager for a candidate for the Office of the President of the United 
States upon appointment to a noncareer position in the executive branch. 
The official does not need to disclose the campaign manager position in 
his financial disclosure report.
    Example 7: Immediately prior to her recent appointment to a position 
in an agency, an official terminated her employment as a corporate 
officer. In connection with her employment, she served for several years 
as the corporation's representative to an incorporated association that 
represents members of the industry in which the corporation operates. 
She does not need to disclose her role as her employer's representative 
to the association because she performed her representative duties in 
her capacity as a corporate officer.
    Example 8: An official holds a position on the board of directors of 
a local food bank. The official must disclose the position in his 
financial disclosure report.

    (f) Agreements and arrangements. Each financial disclosure report 
filed pursuant to this subpart must identify the parties to, and must 
briefly describe the terms of, any agreement or arrangement of the filer 
in existence at any time during the reporting period with respect to:
    (1) Future employment (including the date on which the filer entered 
into the agreement for future employment);
    (2) A leave of absence from employment during the period of the 
filer's Government service;
    (3) Continuation of payments by a current or former employer other 
than the United States Government; and
    (4) Continuing participation in an employee welfare or benefit plan 
maintained by a current or former employer other than the United States 
Government. Confidential filers are not required to disclose continuing 
participation in a defined contribution plan, such as a 401(k) plan, to 
which a former employer is no longer making contributions.

    Note to paragraph (f)(4): Even if the agreement is not reportable, 
the filer must disclose any reportable asset, such as a sector fund or a 
stock, held in the account.
    Example 1: A filer plans to retire from Government service in eight 
months. She has negotiated an arrangement for part-time employment with 
a private-sector company, to commence upon her retirement. On her 
financial disclosure report, she must identify the future employer, and 
briefly describe the terms of, this agreement and disclose the date on 
which she entered into the agreement.
    Example 2: A new employee has entered a position which requires the 
filing of a confidential form. During his Government tenure, he will 
continue to receive deferred compensation from his former employer and 
will continue to participate in its pension plan. He must report the 
receipt of deferred compensation and the participation in the defined 
benefit plan.
    Example 3: An employee has a defined contribution plan with a former 
employer. The employer no longer makes contributions to the plan. In the 
account, the employee holds shares worth $15,000 in an S&P 500 Index 
fund and shares worth $7,000 in an U.S. Financial Services fund. The 
employee does not need to disclose either the agreement to continue to 
participate in the plan or the S&P 500 Index Fund. The employee must 
disclose the U.S. Financial Services Fund sector fund.

    (g) Gifts and travel reimbursements. (1) Each annual financial 
disclosure report filed pursuant to this subpart must contain a brief 
description of all gifts and travel reimbursements aggregating more than 
$390 in value which are received by the filer during the reporting 
period from any one source, as well as the identity of the source. For 
travel-related items, the report must include a travel itinerary, the 
dates, and the nature of expenses provided. Special government employees 
are not required to report the travel reimbursements received from their 
non-Federal employers.

[[Page 601]]

    (2) Aggregation exception. Any gift or travel reimbursement with a 
fair market value of $156 or less need not be aggregated for purposes of 
the reporting rules of this section. However, the acceptance of gifts, 
whether or not reportable, is subject to the restrictions imposed by 
Executive Order 12674, as modified by Executive Order 12731, and the 
implementing regulations on standards of ethical conduct.

    Note to paragraph (g)(2): The Office of Government Ethics sets these 
amounts every 3 years using the same disclosure thresholds as those for 
public financial disclosure filers. In 2017, the reporting threshold was 
set at $390 and the aggregation threshold was set at $156. The Office of 
Government Ethics will update this part in 2020 and every three years 
thereafter to reflect the new amount.

    (3) Valuation of gifts and travel reimbursements. The value to be 
assigned to a gift or travel reimbursement is its fair market value. For 
most reimbursements, this will be the amount actually received. For 
gifts, the value should be determined in one of the following manners:
    (i) If the gift is readily available in the market, the value will 
be its retail price. The filer need not contact the donor, but may 
contact a retail establishment selling similar items to determine the 
present cost in the market.
    (ii) If the item is not readily available in the market, such as a 
piece of art, the filer may make a good faith estimate of the value of 
the item.
    (iii) The term ``readily available in the market'' means that an 
item generally is available for retail purchase.
    (4) New entrants, as described in Sec.  2634.903(b), need not report 
any information on gifts and travel reimbursements.
    (5) Exceptions. Reports need not contain any information about gifts 
and travel reimbursements received from relatives (see Sec.  
2634.105(o)) or during a period in which the filer was not an officer or 
employee of the Federal Government. Additionally, any food, lodging, or 
entertainment received as ``personal hospitality of any individual,'' as 
defined in Sec.  2634.105(k), need not be reported. See also exclusions 
specified in the definitions of ``gift'' and ``reimbursement'' at Sec.  
2634.105(h) and (n).

    Example: A filer accepts a laptop bag, a t-shirt, and a cell phone 
from a community service organization he has worked with solely in his 
private capacity. He determines that the value of these gifts is:
Gift 1--Laptop bag: $200
Gift 2--T-shirt: $20
Gift 3--Cell phone: $275
    The filer must disclose Gift 1 and Gift 3 because, together, they 
aggregate more than $390 in value from the same source. He need not 
aggregate or report Gift 2 because the gift's value does not exceed 
$156.

    (h) Disclosure rules for spouses and dependent children--(1) 
Noninvestment income. (i) Each financial disclosure report required by 
the provisions of this subpart must disclose the source of earned income 
in excess of $1,000 from any one source, which is received by the 
filer's spouse during the reporting period. If earned income is derived 
from a spouse's self-employment in a business or profession, the report 
must disclose the nature of the business or profession. The filer is not 
required to report other noninvestment income received by the spouse 
such as prizes, scholarships, awards, gambling income, or a discharge of 
indebtedness.
    (ii) Each report must disclose the source of any honoraria received 
by the spouse (or payments made or to be made to charity on the spouse's 
behalf in lieu of honoraria) in excess of $1,000 from any one source 
during the reporting period.

    Example to paragraph (h)(1): A filer's husband has a seasonal part-
time job as a sales clerk at a department store, for which he receives a 
salary of $1,000 per year, and an honorarium of $1,250 from the state 
university. The filer need not report her husband's outside earned 
income because it did not exceed $1,000. She must, however, report the 
source of the honorarium because it exceeded $1,000.

    (2) Assets and investment income. Each confidential financial 
disclosure report must disclose the assets and investment income 
described in paragraph (c) of this section and held by the spouse or 
dependent child of the filer.
    (3) Liabilities. Each confidential financial disclosure report must 
disclose all information concerning liabilities described in paragraph 
(d) of this section and owed by a spouse or dependent child.

[[Page 602]]

    (4) Gifts and travel reimbursements. (i) Each annual confidential 
financial disclosure report must disclose gifts and reimbursements 
described in paragraph (g) of this section and received by a spouse or 
dependent child which are not received totally independently of their 
relationship to the filer.
    (ii) A filer who is a new entrant as described in Sec.  2634.903(b) 
is not required to report information regarding gifts and reimbursements 
received by a spouse or dependent child.
    (5) Divorce and separation. A filer need not report any information 
about:
    (i) A spouse living separate and apart from the filer with the 
intention of terminating the marriage or providing for permanent 
separation;
    (ii) A former spouse or a spouse from whom the filer is permanently 
separated; or
    (iii) Any income or obligations of the filer arising from 
dissolution of the filer's marriage or permanent separation from a 
spouse.

    Example: A filer and her husband are living apart in anticipation of 
divorcing. The filer need not report any information about her spouse's 
sole assets and liabilities, but she must continue to report their joint 
assets and liabilities.

    (6) Unusual circumstances. In very rare cases, certain interests in 
property, transactions, and liabilities of a spouse or a dependent child 
are excluded from reporting requirements, provided that each requirement 
of this paragraph is strictly met.
    (i) The filer must certify without qualification that the item 
represents the spouse's or dependent child's sole financial interest or 
responsibility, and that the filer has no knowledge regarding that item;
    (ii) The item must not be in any way, past or present, derived from 
the income, assets or activities of the filer; and
    (iii) The filer must not derive, or expect to derive, any financial 
or economic benefit from the item.

    Note to paragraph (h)(6): The exception described in paragraph (6) 
of this section is not available to most filers. One who prepares or 
files a joint tax return with a spouse will normally derive a financial 
or economic benefit from assets held by the spouse, and will also be 
presumed to have knowledge of such items; therefore one could not avail 
oneself of this exception after preparing or filing a joint tax return. 
If the filer and the spouse cohabitate and share household expenses, the 
filer will be deemed to derive an economic benefit from the item, unless 
the item is beyond the filer's control.
    Example: The spouse of a filer has a managed account with a 
brokerage firm. The filer knows the account exists but the spouse does 
not share any information about the holdings and does not want the 
information disclosed on a financial disclosure statement. The filer 
must disclose the holdings in the spouse's managed account because the 
spouse shares in paying expenses (for example, household, vacation, or 
child related).

    (i) Trusts, estates, and investment funds--(1) In general. (i) 
Except as otherwise provided in this section, each confidential 
financial disclosure report must include the information required by 
this subpart about the holdings of any trust, estate, investment fund or 
other financial arrangement from which income is received by, or with 
respect to which a beneficial interest in principal or income is held 
by, the filer, the filer's spouse, or dependent child.
    (ii) Information about the underlying holdings of a trust is 
required if the filer, filer's spouse, or dependent child currently is 
entitled to receive income from the trust or is entitled to access the 
principal of the trust. If a filer, filer's spouse, or dependent child 
has a beneficial interest in a trust that either will provide income or 
the ability to access the principal in the future, the filer should 
determine whether there is a vested interest in the trust under 
controlling state law. However, no information about the underlying 
holdings of the trust is required for a nonvested beneficial interest in 
the principal or income of a trust.

    Note to paragraph (i)(1): Nothing in this section requires the 
reporting of the holdings of a revocable inter vivos trust (also known 
as a ``living trust'') with respect to which the filer, the filer's 
spouse or dependent child has only a remainder interest, whether or not 
vested, provided that the grantor of the trust is neither the filer, the 
filer's spouse, nor the filer's dependent child. Furthermore, nothing in 
this section requires the reporting of the holdings of a revocable inter 
vivos trust from which the filer, the filer's spouse or dependent child 
receives any discretionary distribution, provided that the

[[Page 603]]

grantor of the trust is neither the filer, the filer's spouse, nor the 
filer's dependent child.

    (2) Qualified trusts and excepted trusts. (i) A filer should not 
report information about the holdings of any qualified blind trust (as 
defined in Sec.  2634.402) or any qualified diversified trust (as 
defined in Sec.  2634.402).
    (ii) In the case of an excepted trust, a filer should indicate the 
general nature of its holdings, to the extent known, but does not 
otherwise need to report information about the trust's holdings. For 
purposes of this part, the term ``excepted trust'' means a trust:
    (A) Which was not created directly by the filer, spouse, or 
dependent child; and
    (B) The holdings or sources of income of which the filer, spouse, or 
dependent child have no specific knowledge through a report, disclosure, 
or constructive receipt, whether intended or inadvertent.
    (3) Excepted investment funds. (i) No information is required under 
paragraph (i)(1) of this section about the underlying holdings of an 
excepted investment fund as defined in paragraph (i)(3)(ii) of this 
section, except that the fund itself must be identified as an interest 
in property and/or a source of income.
    (ii) For purposes of financial disclosure reports filed under the 
provisions of this subpart, an ``excepted investment fund'' means a 
widely held investment fund (whether a mutual fund, regulated investment 
company, common trust fund maintained by a bank or similar financial 
institution, pension or deferred compensation plan, or any other 
investment fund), if:
    (A)(1) The fund is publicly traded or available; or
    (2) The assets of the fund are widely diversified; and
    (B) The filer neither exercises control over nor has the ability to 
exercise control over the financial interests held by the fund.
    (iii) A fund is widely diversified if it does not have a stated 
policy of concentrating its investments in any industry, business, 
single country other than the United States, or bonds of a single State 
within the United States.

    Note to paragraph (i)(3): The fact that an investment fund qualifies 
as an excepted investment fund is not relevant to a determination as to 
whether the investment qualifies for an exemption to the criminal 
conflict of interest statute at 18 U.S.C. 208(a), pursuant to part 2640 
of this chapter. Some excepted investment funds qualify for exemptions 
pursuant to part 2640, while other excepted investment funds do not 
qualify for such exemptions. If an employee holds an excepted investment 
fund that is not exempt from 18 U.S.C. 208(a), the ethics official may 
need additional information from the filer to determine if the holdings 
of the fund create a conflict of interest and should advise the employee 
to monitor the fund's holdings for potential conflicts of interest.

    (j) Special rules. (1) Political campaign funds, including campaign 
receipts and expenditures, need not be included in any report filed 
under this subpart. However, if the individual has authority to exercise 
control over the fund's assets for personal use rather than campaign or 
political purposes, that portion of the fund over which such authority 
exists must be reported.
    (2) With permission of the designated agency ethics official, a 
filer may attach to the reporting form a copy of a statement which, in a 
clear and concise fashion, readily discloses all information which the 
filer would otherwise have been required to enter on the concerned part 
of the report form.
    (k) For reports of confidential filers described in Sec.  
2634.904(a)(3), each supplemental confidential financial disclosure 
report will include only the supplemental information:
    (1) Which is more extensive than that required in the reporting 
individual's public financial disclosure report under this part; and
    (2) Which has been approved by the Office of Government Ethics for 
collection by the agency concerned, as set forth in supplemental agency 
regulations and forms, issued under Sec. Sec.  2634.103 and 2634.601(b) 
(see Sec.  2634.901(b) and (c)).



Sec.  2634.908  Reporting periods.

    (a) Incumbents. Each confidential financial disclosure report filed 
under Sec.  2634.903(a) must include the information required to be 
reported under this subpart for the preceding calendar year, or for any 
portion of that period not covered by a previous confidential or public 
financial disclosure report filed under this part.

[[Page 604]]

    (b) New entrants. Each confidential financial disclosure report 
filed under Sec.  2634.903(b) must include the information required to 
be reported under this subpart for the following reporting periods:
    (1) Noninvestment income for the preceding 12 months;
    (2) Assets held on the date of filing. New entrant filers are not 
required to report assets no longer held at the time of appointment, 
even if the assets previously produced income before the filers were 
appointed to their confidential positions;
    (3) Liabilities owed on the date of filing;
    (4) Positions with non-Federal organizations for the preceding 12 
months; and
    (5) Agreements and arrangements held on the date of filing.



Sec.  2634.909  Procedures, penalties, and ethics agreements.

    (a) The provisions of subpart F of this part govern the filing 
procedures and forms for, and the custody and review of, confidential 
disclosure reports filed under this subpart.
    (b) For penalties and remedial action which apply in the event that 
the reporting individual fails to file, falsifies information, or files 
late with respect to confidential financial disclosure reports, see 
subpart G of this part.
    (c) Subpart H of this part on ethics agreements applies to both the 
public and confidential reporting systems under this part.



                  Subpart J_Certificates of Divestiture



Sec.  2634.1001  Overview.

    (a) Scope. 26 U.S.C. 1043 and the rules of this subpart allow an 
eligible person to defer paying capital gains tax on property sold to 
comply with conflict of interest requirements. To defer the gains, an 
eligible person must obtain a Certificate of Divestiture from the 
Director of the Office of Government Ethics before selling the property. 
This subpart describes the circumstances when an eligible person may 
obtain a Certificate of Divestiture and establishes the procedure that 
the Office of Government Ethics uses to issue Certificates of 
Divestiture.
    (b) Purpose. The purpose of section 1043 and this subpart is to 
minimize the burden that would result from paying capital gains tax on 
the sale of assets to comply with conflict of interest requirements. 
Minimizing this burden aids in attracting and retaining highly qualified 
personnel in the executive branch and ensures the confidence of the 
public in the integrity of Government officials and decision-making 
processes.



Sec.  2634.1002  Role of the Internal Revenue Service.

    The Internal Revenue Service (IRS) has jurisdiction over the tax 
aspects of a divestiture made pursuant to a Certificate of Divestiture. 
Eligible persons seeking to defer capital gains:
    (a) Must follow IRS requirements for reporting dispositions of 
property and electing under section 1043 not to recognize capital gains; 
and
    (b) Should consult a personal tax advisor or the IRS for guidance on 
these matters.



Sec.  2634.1003  Definitions.

    For purposes of this subpart:
    (a) Eligible person means:
    (1) Any officer or employee of the executive branch of the Federal 
Government, except a person who is a special Government employee as 
defined in 18 U.S.C. 202;
    (2) The spouse or any minor or dependent child of the individual 
referred to in paragraph (1) of this definition; and
    (3) Any trustee holding property in a trust in which an individual 
referred to in paragraph (1) or (2) of this definition has a beneficial 
interest in principal or income.
    (b) Permitted property means:
    (1) An obligation of the United States; or
    (2) A diversified investment fund. A diversified investment fund is 
a diversified mutual fund (including diversified exchange-traded funds) 
or a diversified unit investment trust, as defined in 5 CFR 2640.102(a), 
(k) and (u);

[[Page 605]]

    (3) Provided, however, a permitted property cannot be any holding 
prohibited by statute, regulation, rule, or Executive order. As a 
result, requirements applicable to specific agencies and positions may 
limit an eligible person's choices of permitted property. An employee 
seeking a Certificate of Divestiture should consult the appropriate 
designated agency ethics official to determine whether a statute, 
regulation, rule, or Executive order may limit choices of permitted 
property.



Sec.  2634.1004  General rule.

    (a) The Director of the Office of Government Ethics may issue a 
Certificate of Divestiture for specific property in accordance with the 
procedures of Sec.  2634.1005 if:
    (1) The Director determines that divestiture of the property by an 
eligible person is reasonably necessary to comply with 18 U.S.C. 208, or 
any other Federal conflict of interest statute, regulation, rule, or 
Executive order; or
    (2) A congressional committee requires divestiture as a condition of 
confirmation.
    (b) The Director of the Office of Government Ethics cannot issue a 
Certificate of Divestiture for property that already has been sold.

    Example 1: An employee is directed to divest shares of stock, a 
limited partnership interest, and foreign currencies. If the sale of 
these assets will result in capital gains under the Internal Revenue 
Code, the employee may request and receive a Certificate of Divestiture.
    Example 2: An employee of the Department of Commerce is directed to 
divest his shares of XYZ stock acquired through the exercise of options 
held in an employee benefit plan. The employee explains that the gain 
from the sale of the stock will be treated as ordinary income. Because 
only capital gains realized under Federal tax law are eligible for 
deferral under section 1043, a Certificate of Divestiture cannot be 
issued for the sale of the XYZ stock.
    Example 3: During her Senate confirmation hearing, a nominee to a 
Department of Defense (DOD) position is directed to divest stock in a 
DOD contractor as a condition of her confirmation. Eager to comply with 
the order to divest, the nominee sells her stock immediately after the 
hearing and prior to being confirmed by the Senate. Once she is a DOD 
employee, she requests a Certificate of Divestiture for the stock. 
Because the Office of Government Ethics cannot issue a Certificate of 
Divestiture for property that has already been divested, the employee's 
request for a Certificate of Divestiture must be denied.



Sec.  2634.1005  How to obtain a Certificate of Divestiture.

    (a) Employee's request to the designated agency ethics official. An 
employee seeking a Certificate of Divestiture must submit a written 
request to the designated agency ethics official at his or her agency. 
The request must contain:
    (1) A full and specific description of the property that will be 
divested. For example, if the property is corporate stock, the request 
must include the number of shares for which the eligible person seeks a 
Certificate of Divestiture;
    (2) A brief description of how the eligible person acquired the 
property;
    (3) A statement that the eligible person holding the property has 
agreed to divest the property; and
    (4)(i) The date that the requirement to divest first applied; or
    (ii) The date the employee first agreed that the eligible person 
would divest the property in order to comply with conflict of interest 
requirements.
    (b) Designated agency ethics official's submission to the Office of 
Government Ethics. The designated agency ethics official must forward to 
the Director of the Office of Government Ethics the employee's written 
request described in paragraph (a) of this section. In addition, the 
designated agency ethics official must submit:
    (1) A copy of the employee's most recent Incumbent financial 
disclosure report, or New Entrant report, if an Incumbent report has not 
been filed, and any subsequent Periodic Transaction reports, as required 
by this part. If the employee is not required to file a financial 
disclosure report, the designated agency ethics official must obtain 
from the employee, and submit to the Office of Government Ethics, a 
listing of the employee's interests that would be required to be 
disclosed on a confidential financial disclosure report excluding gifts 
and travel reimbursements. For purposes of this listing, the reporting 
period is the preceding 12 months from the date the requirement to 
divest first applied or the date the

[[Page 606]]

employee first agreed that the eligible person would divest the 
property;
    (2) An opinion that describes why divestiture of the property is 
reasonably necessary to comply with 18 U.S.C. 208, or any other Federal 
conflict of interest statute, regulation, rule, or Executive order;
    (3) If applicable, a statement identifying any factors that, in the 
opinion of the designated agency ethics official, weigh against the 
issuance of a certificate of divestiture; and
    (4) A brief description of the employee's position or a citation to 
a statute that sets forth the duties of the position.
    (c) Divestitures required by a congressional committee. In the case 
of a divestiture required by a congressional committee as a condition of 
confirmation, the designated agency ethics official must submit 
appropriate evidence that the committee requires the divestiture. A 
transcript of congressional testimony or a written statement from the 
designated agency ethics official concerning the committee's custom 
regarding divestiture are examples of evidence of the committee's 
requirements.
    (d) Divestitures for property held in a trust. In the case of 
divestiture of property held in a trust, the employee must submit a copy 
of the trust instrument, as well as a list of the trust's current 
holdings, unless the holdings are listed on the employee's most recent 
financial disclosure report. In certain cases involving divestiture of 
property held in a trust, the Director may not issue a Certificate of 
Divestiture unless the parties take actions which, in the opinion of the 
Director, are appropriate to exclude, to the extent practicable, parties 
other than eligible persons from benefitting from the deferral of 
capital gains. Such actions may include, as permitted by applicable 
State law, division of the trust into separate portfolios, special 
distributions, dissolution of the trust, or anything else deemed 
feasible by the Director, in his or her sole discretion.

    Example: An employee has a 90% beneficial interest in an irrevocable 
trust created by his grandfather. His four adult children have the 
remaining 10% beneficial interest in the trust. A number of the assets 
held in the trust must be sold to comply with conflicts of interest 
requirements. Due to State law, no action can be taken to separate the 
trust assets. Because the adult children have a small interest in the 
trust and the assets cannot be separated, the Director may consider 
issuing a Certificate of Divestiture to the trustee for the sale of all 
of the conflicting assets.

    (e) Time requirements. A request for a Certificate of Divestiture 
does not extend the time in which an employee otherwise must divest 
property required to be divested pursuant to an ethics agreement, or 
prohibited by statute, regulation, rule, or Executive order. Therefore, 
an employee must submit his or her request for a Certificate of 
Divestiture as soon as possible once the requirement to divest becomes 
applicable. The Office of Government Ethics will consider requests 
submitted beyond the applicable time period for divestiture. If the 
designated agency ethics official submits a request to the Office of 
Government Ethics beyond the applicable time period for divestiture, he 
must explain the reason for the delay. See Sec. Sec.  2634.802 and 
2635.403 for rules relating to the time requirements for divestiture.
    (f) Response by the Office of Government Ethics. After reviewing the 
materials submitted by the employee and the designated agency ethics 
official, and making a determination that all requirements have been 
met, the Director will issue a Certificate of Divestiture. The 
certificate will be sent to the designated agency ethics official who 
will then forward it to the employee.



Sec.  2634.1006  Rollover into permitted property.

    (a) Reinvestment of proceeds. In order to qualify for deferral of 
capital gains, an eligible person must reinvest the proceeds from the 
sale of the property divested pursuant to a Certificate of Divestiture 
into permitted property during the 60-day period beginning on the date 
of the sale. The proceeds may be reinvested into one or more types of 
permitted property.

    Example 1: A recently hired employee of the Department of 
Transportation receives a Certificate of Divestiture for the sale of a 
large block of stock in an airline. He may split the proceeds of the 
sale and reinvest them in an S&P Index Fund, a diversified

[[Page 607]]

Growth Stock Fund, and U.S. Treasury bonds.
    Example 2: The Secretary of Treasury sells certain stock after 
receiving a Certificate of Divestiture and is considering reinvesting 
the proceeds from the sale into U.S. Treasury securities. However, 
because the Secretary of the Treasury is prohibited by 31 U.S.C. 329 
from being involved in buying obligations of the United States 
Government, the Secretary cannot reinvest the proceeds in such 
securities. However, she may invest the proceeds in a diversified mutual 
fund. See the definition of permitted property at Sec.  2634.1003(b).

    (b) Internal Revenue Service reporting requirements. An eligible 
person who elects to defer the recognition of capital gains from the 
sale of property pursuant to a Certificate of Divestiture must follow 
Internal Revenue Service rules for reporting the sale of the property 
and the reinvestment transaction.



Sec.  2634.1007  Cases in which Certificates of Divestiture will not be issued.

    The Director of the Office of Government Ethics, in his or her sole 
discretion, may deny a request for a Certificate of Divestiture in cases 
where an unfair or unintended benefit would result. Examples of such 
cases include:
    (a) Employee benefit plans. The Director will not issue a 
Certificate of Divestiture if the property is held in a pension, profit-
sharing, stock bonus, or other employee benefit plan and can otherwise 
be rolled over into an eligible tax-deferred retirement plan within the 
60-day reinvestment period.
    (b) Tax-Deferred and Tax-Advantaged Accounts. The Director will not 
issue a Certificate of Divestiture if the property is held in an 
Individual Retirement Account, college savings plan (529 plan), or other 
tax-deferred or tax-advantaged account (e.g., 401(k), 403(b), 457 plans, 
etc.), which allow the account holder to exchange the property for 
permissible property without incurring a capital gain.
    (c) Complete divestiture. The Director will not issue a Certificate 
of Divestiture unless the employee agrees to divest all of the property 
that presents a conflict of interest, as well as other similar or 
related property that presents a conflict of interest under a Federal 
conflict of interest statute, regulation, rule, or Executive order. 
However, any property that qualifies for a regulatory exemption at part 
2640 of this chapter need not be divested for a Certificate of 
Divestiture to be issued.

    Example: A Department of Agriculture employee owns shares of stock 
in Better Workspace, Inc. valued at $25,000. As part of his official 
duties, the employee is assigned to evaluate bids for a contract to 
renovate office space at his agency. The Department's designated agency 
ethics official discovers that Better Workspace is one of the companies 
that has submitted a bid and directs the employee to sell his stock in 
the company. Because Better Workspace is a publicly traded security, the 
employee could retain up to $15,000 of the stock under the regulatory 
exemption for interests in securities at Sec.  2640.202(a) of this 
chapter. He would be able to request a Certificate of Divestiture for 
the $10,000 of Better Workspace stock that is not covered by the 
exemption. Alternatively, he could request a Certificate of Divestiture 
for the entire $25,000 worth of stock. If he chooses to sell his stock 
down to an amount permitted under the regulatory exemption, the Office 
of Government Ethics will not issue additional Certificates of 
Divestiture if the value of the stock goes above $15,000 again.

    (d) Property acquired under improper circumstances. The Director 
will not issue a Certificate of Divestiture:
    (1) If the eligible person acquired the property at a time when its 
acquisition was prohibited by statute, regulation, rule, or Executive 
order; or
    (2) If circumstances would otherwise create the appearance of a 
conflict with the conscientious performance of Government 
responsibilities.



Sec.  2634.1008  Public access to a Certificate of Divestiture.

    A Certificate of Divestiture issued pursuant to the provisions of 
this subpart is available to the public in accordance with the rules of 
Sec.  2634.603.



PART 2635_STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE EXECUTIVE BRANCH--
Table of Contents



                      Subpart A_General Provisions

Sec.
2635.101 Basic obligation of public service.
2635.102 Definitions.
2635.103 Applicability to members of the uniformed services.
2635.104 Applicability to employees on detail.
2635.105 Supplemental agency regulations.

[[Page 608]]

2635.106 Disciplinary and corrective action.
2635.107 Ethics advice.

                  Subpart B_Gifts From Outside Sources

2635.201 Overview and considerations for declining otherwise permissible 
          gifts.
2635.202 General prohibition on solicitation or acceptance of gifts.
2635.203 Definitions.
2635.204 Exceptions to the prohibition for acceptance of certain gifts.
2635.205 Limitations on use of exceptions.
2635.206 Proper disposition of prohibited gifts.

                    Subpart C_Gifts Between Employees

2635.301 Overview.
2635.302 General standards.
2635.303 Definitions.
2635.304 Exceptions.

                Subpart D_Conflicting Financial Interests

2635.401 Overview.
2635.402 Disqualifying financial interests.
2635.403 Prohibited financial interests.

          Subpart E_Impartiality in Performing Official Duties

2635.501 Overview.
2635.502 Personal and business relationships.
2635.503 Extraordinary payments from former employers.

                   Subpart F_Seeking Other Employment

2635.601 Overview.
2635.602 Applicability and related considerations.
2635.603 Definitions.
2635.604 Recusal while seeking employment.
2635.605 Waiver or authorization permitting participation while seeking 
          employment.
2635.606 Recusal based on an arrangement concerning prospective 
          employment or otherwise after negotiations.
2635.607 Notification requirements for public financial disclosure 
          report filers regarding negotiations for or agreement of 
          future employment or compensation.

                      Subpart G_Misuse of Position

2635.701 Overview.
2635.702 Use of public office for private gain.
2635.703 Use of nonpublic information.
2635.704 Use of Government property.
2635.705 Use of official time.

                      Subpart H_Outside Activities

2635.801 Overview.
2635.802 Conflicting outside employment and activities.
2635.803 Prior approval for outside employment and activities.
2635.804 Outside earned income limitations applicable to certain 
          Presidential appointees and other noncareer employees.
2635.805 Service as an expert witness.
2635.806 Participation in professional associations. [Reserved]
2635.807 Teaching, speaking and writing.
2635.808 Fundraising activities.
2635.809 Just financial obligations.

                 Subpart I_Related Statutory Authorities

2635.901 General.
2635.902 Related statutes.

    Authority: 5 U.S.C. 7301, 7351, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 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



Sec.  2635.101  Basic obligation of public service.

    (a) Public service is a public trust. Each employee has a 
responsibility to the United States Government and its citizens to place 
loyalty to the Constitution, laws and ethical principles above private 
gain. To ensure that every citizen can have complete confidence in the 
integrity of the Federal Government, each employee shall respect and 
adhere to the principles of ethical conduct set forth in this section, 
as well as the implementing standards contained in this part and in 
supplemental agency regulations.
    (b) General principles. The following general principles apply to 
every employee and may form the basis for the standards contained in 
this part. Where a situation is not covered by the standards set forth 
in this part, employees shall apply the principles set forth in this 
section in determining whether their conduct is proper.
    (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

[[Page 609]]

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 race, color, religion, 
sex, national origin, age, or handicap.
    (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. In addition to the standards of ethical 
conduct set forth in this part, there are conflict of interest statutes 
that prohibit certain conduct. Criminal conflict of interest statutes of 
general applicability to all employees, 18 U.S.C. 201, 203, 205, 208, 
and 209, are summarized in the appropriate subparts of this part and 
must be taken into consideration in determining whether conduct is 
proper. Citations to other generally applicable statutes relating to 
employee conduct are set forth in subpart I and employees are further 
cautioned that there may be additional statutory and regulatory 
restrictions applicable to them generally or as employees of their 
specific agencies. Because an employee is considered to be on notice of 
the requirements of any statute, an employee should not rely upon any 
description or synopsis of a statutory restriction, but should refer to 
the statute itself and obtain the advice of an agency ethics official as 
needed.



Sec.  2635.102  Definitions.

    The definitions listed below 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 means an executive agency as defined in 5 U.S.C. 105 and 
the Postal Service and the Postal Rate Commission. It does not include 
the General Accounting Office or the Government of the District of 
Columbia.
    (b) Agency designee refers to any employee who, by agency 
regulation, instruction, or other issuance, has been delegated authority 
to make any determination, give any approval, or take any other action 
required or permitted by this part with respect to another employee. An 
agency may delegate these authorities to any number of agency designees 
necessary to ensure that determinations are made, approvals are given, 
and other actions are taken in a timely and responsible manner. Any 
provision that requires a determination, approval, or other action by 
the agency designee shall, where the conduct in issue is that of the 
agency head, be deemed to require that such determination, approval or 
action be made or taken by the agency head in

[[Page 610]]

consultation with the designated agency ethics official.
    (c) Agency ethics official refers to the designated agency ethics 
official or to the alternate designated agency ethics official, referred 
to in Sec.  2638.202(b) of this chapter, and to any deputy ethics 
official, described in Sec.  2638.204 of this chapter, who has been 
delegated authority to assist in carrying out the responsibilities of 
the designated agency ethics official.
    (d) Agency programs or operations refers to any program or function 
carried out or performed by an agency, whether pursuant to statute, 
Executive order, or regulation.
    (e) Corrective action includes any action necessary to remedy a past 
violation or prevent a continuing violation of this part, including but 
not limited to restitution, change of assignment, disqualification, 
divestiture, termination of an activity, waiver, the creation of a 
qualified diversified or blind trust, or counseling.
    (f) Designated agency ethics official refers to the official 
designated under Sec.  2638.201 of this chapter.
    (g) Disciplinary action includes those disciplinary actions referred 
to in Office of Personnel Management regulations and instructions 
implementing provisions of title 5 of the United States Code or provided 
for in comparable provisions applicable to employees not subject to 
title 5, including but not limited to reprimand, suspension, demotion, 
and removal. In the case of a military officer, comparable provisions 
may include those in the Uniform Code of Military Justice.
    (h) Employee means any officer or employee of an agency, including a 
special Government employee. It includes officers but not enlisted 
members of the uniformed services. It includes 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. For purposes other than 
subparts B and C of this part, it does not include the President or Vice 
President. Status as an employee is unaffected by pay or leave status 
or, in the case of a special Government employee, by the fact that the 
individual does not perform official duties on a given day.
    (i) Head of an agency means, in the case of an agency headed by more 
than one person, the chair or comparable member of such agency.
    (j) He, his, and him include she, hers and her.
    (k) Person means an individual, corporation and subsidiaries it 
controls, company, association, firm, partnership, society, joint stock 
company, or any other organization or institution, including any 
officer, employee, or agent of such person or entity. For purposes of 
this part, a corporation will be deemed to control a subsidiary if it 
owns 50 percent or more of the subsidiary's voting securities. The term 
is all-inclusive and applies to commercial ventures and nonprofit 
organizations as well as to foreign, State, and local governments, 
including the Government of the District of Columbia. It does not 
include any agency or other entity of the Federal Government or any 
officer or employee thereof when acting in his official capacity on 
behalf of that agency or entity.
    (l) Special Government employee means those executive branch 
officers or employees specified in 18 U.S.C. 202(a). A special 
Government employee is retained, designated, appointed, or employed to 
perform temporary duties either on a full-time or intermittent basis, 
with or without compensation, for a period not to exceed 130 days during 
any consecutive 365-day period.
    (m) Supplemental agency regulation means a regulation issued 
pursuant to Sec.  2635.105.

[57 FR 35042, Aug. 7, 1992, as amended at 71 FR 45736, Aug. 10, 2006]



Sec.  2635.103  Applicability to members of the uniformed services.

    The provisions of this part, except this section, are not applicable 
to enlisted members of the uniformed services. Each agency with 
jurisdiction over enlisted members of the uniformed services shall issue 
regulations defining the ethical conduct obligations of enlisted members 
under its jurisdiction. Those regulations shall 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

[[Page 611]]

of Military Justice, for failure to comply with such regulations.



Sec.  2635.104  Applicability to employees on detail.

    (a) Details to other agencies. Except as provided in paragraph (d) 
of this section, an employee on detail, including a uniformed officer on 
assignment, from his employing agency to another agency for a period in 
excess of 30 calendar days shall be subject to any supplemental agency 
regulations of the agency to which he is detailed rather than to any 
supplemental agency regulations of his employing agency.
    (b) Details to the legislative or judicial branch. An employee on 
detail, including a uniformed officer on assignment, from his employing 
agency to the legislative or judicial branch for a period in excess of 
30 calendar days shall be subject to the ethical standards of the branch 
or entity to which detailed. For the duration of any such detail or 
assignment, the employee shall not be subject to the provisions of this 
part, except this section, or, except as provided in paragraph (d) of 
this section, to any supplemental agency regulations of his employing 
agency, but shall remain subject to the conflict of interest 
prohibitions in title 18 of the United States Code.
    (c) Details to non-Federal entities. Except to the extent exempted 
in writing pursuant to this paragraph, an employee detailed to a non-
Federal entity remains subject to this part and to any supplemental 
agency regulation of his employing agency. When an employee is detailed 
pursuant to statutory authority to an international organization or to a 
State or local government for a period in excess of six months, the 
designated agency ethics official may grant a written exemption from 
subpart B of this part based on his determination that the entity has 
adopted written ethical standards covering solicitation and acceptance 
of gifts which will apply to the employee during the detail and which 
will be appropriate given the purpose of the detail.
    (d) Applicability of special agency statutes. Notwithstanding 
paragraphs (a) and (b) of this section, an employee who is subject to an 
agency statute which restricts his activities or financial holdings 
specifically because of his status as an employee of that agency shall 
continue to be subject to any provisions in the supplemental agency 
regulations of his employing agency that implement that statute.



Sec.  2635.105  Supplemental agency regulations.

    In addition to the regulations set forth in this part, an employee 
shall comply with any supplemental agency regulations issued by his 
employing agency under this section.
    (a) An agency that wishes to supplement this part shall 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 shall 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 shall submit its supplemental agency regulations to 
the Federal Register for publication and codification at the expense of 
the agency in title 5 of the Code of Federal Regulations. Supplemental 
agency regulations issued under this section are effective only after 
concurrence and co-signature by the Office of Government Ethics and 
publication in the 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

[[Page 612]]

    (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. 
Where the content of any such regulations or instructions was included 
in the agency's standards of conduct regulations issued pursuant to 
Executive Order 11222 and the Office of Government Ethics concurs that 
they need not be issued as part of an agency's supplemental agency 
regulations, those regulations or instructions may be promulgated 
separately from the agency's supplemental agency regulations.
    (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., are subject to any requirements, in addition to those in this 
part, established by a supplemental agency regulation issued under this 
section to the extent that such regulation expressly provides.

[57 FR 35042, Aug. 7, 1992, as amended at 71 FR 45736, Aug. 10, 2006]



Sec.  2635.106  Disciplinary and corrective action.

    (a) Except as provided in Sec.  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, national origin, age, or handicap is 
required to follow applicable statutory and regulatory procedures, 
including those of the Equal Employment Opportunity Commission.



Sec.  2635.107  Ethics advice.

    (a) As required by Sec. Sec.  2638.201 and 2638.202(b) of this 
chapter, each agency has a designated agency ethics official who, on the 
agency's behalf, is responsible for coordinating and managing the 
agency's ethics program, as well as an alternate. The designated agency 
ethics official has authority under Sec.  2638.204 of this chapter to 
delegate certain responsibilities, including that of providing ethics 
counseling regarding the application of this part, to one or more deputy 
ethics officials.
    (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. Where 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-

[[Page 613]]

client privilege. An agency ethics official is required by 28 U.S.C. 535 
to report any information he receives relating to a violation of the 
criminal code, title 18 of the United States Code.



                  Subpart B_ Gifts From Outside Sources

    Source: 81 FR 81648, Nov. 18, 2016, unless otherwise noted.



Sec.  2635.201  Overview and considerations for declining 
otherwise permissible gifts.

    (a) Overview. This subpart contains standards that prohibit an 
employee from soliciting or accepting any gift from a prohibited source 
or any gift given because of the employee's official position, unless 
the item is excluded from the definition of a gift or falls within one 
of the exceptions set forth in this subpart.
    (b) Considerations for declining otherwise permissible gifts. (1) 
Every employee has a fundamental responsibility to the United States and 
its citizens to place loyalty to the Constitution, laws, and ethical 
principles above private gain. An employee's actions should promote the 
public's trust that this responsibility is being met. For this reason, 
employees should consider declining otherwise permissible gifts if they 
believe that a reasonable person with knowledge of the relevant facts 
would question the employee's integrity or impartiality as a result of 
accepting the gift.
    (2) An employee who is considering whether acceptance of a gift 
would lead a reasonable person with knowledge of the relevant facts to 
question his or her 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 Sec.  2635.204 
does not violate this subpart or the Principles of Ethical Conduct set 
forth in Sec.  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 Sec.  2635.204, should seek advice 
from an agency ethics official.

    Example 1 to paragraph (b): An employee of the Peace Corps is in 
charge of making routine purchases of office supplies. After a 
promotional presentation to highlight several new products, a vendor 
offers to buy the employee lunch, which costs less than $20. The 
employee is concerned that a reasonable person may question her 
impartiality in accepting the free lunch, as the timing of the offer 
indicates that the donor may be seeking to influence an official action 
and the company has interests that may be substantially affected by the 
performance or nonperformance of the employee's duties. As such, 
although acceptance of the gift may be permissible under Sec.  
2635.204(a), the employee decides to decline the gift.



Sec.  2635.202  General prohibition on solicitation or acceptance of gifts.

    (a) Prohibition on soliciting gifts. Except as provided in this 
subpart, an employee may not, directly or indirectly:
    (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. Except as provided in this 
subpart, an employee may not, directly or indirectly:
    (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. A gift accepted 
pursuant to an exception found in this subpart will not constitute an 
illegal gratuity otherwise prohibited by 18 U.S.C. 201(c)(1)(B), unless 
it is accepted in return for being influenced in the performance of an 
official act. As more fully described in Sec.  2635.205(d)(1), an 
employee may not solicit or accept a gift if to do so would be 
prohibited by the Federal bribery statute, 18 U.S.C. 201(b).


[[Page 614]]


    Example 1 to paragraph (c): A Government contractor who specializes 
in information technology software has offered an employee of the 
Department of Energy's information technology acquisition division a $15 
gift card to a local restaurant if the employee will recommend to the 
agency's contracting officer that she select the contractor's products 
during the next acquisition. Even though the gift card is less than $20, 
the employee may not accept the gift under Sec.  2635.204(a) because it 
is conditional upon official action by the employee. Pursuant to 
Sec. Sec.  2635.202(c) and 2635.205(a), notwithstanding any exception to 
the rule, an employee may not accept a gift in return for being 
influenced in the performance of an official act.



Sec.  2635.203  Definitions.

    For purposes of this subpart, the following definitions apply:
    (a) Agency has the meaning set forth in Sec.  2635.102(a). However, 
for purposes of this subpart, an executive department, as defined in 5 
U.S.C. 101, may, by supplemental agency regulation, designate as a 
separate agency any component of that department which the department 
determines exercises distinct and separate functions.
    (b) Gift includes any gratuity, favor, discount, entertainment, 
hospitality, loan, forbearance, or other item having monetary value. It 
includes services as well as gifts of training, transportation, local 
travel, lodgings and meals, whether provided in-kind, by purchase of a 
ticket, payment in advance, or reimbursement after the expense has been 
incurred. The term excludes the following:
    (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): After giving a speech at the facility 
of a pharmaceutical company, a Government employee is presented with a 
glass paperweight in the shape of a pill capsule with the name of the 
company's latest drug and the date of the speech imprinted on the side. 
The employee may accept the paperweight because it is an item with 
little intrinsic value which is intended primarily for presentation.
    Example 2 to paragraph (b)(2): After participating in a panel 
discussion hosted by an international media company, a Government 
employee is presented with an inexpensive portable music player 
emblazoned with the media company's logo. The portable music player has 
a market value of $25. The employee may not accept the portable music 
player as it has a significant independent use as a music player rather 
than being intended primarily for presentation.
    Example 3 to paragraph (b)(2): After giving a speech at a conference 
held by a national association of miners, a Department of Commerce 
employee is presented with a block of granite that is engraved with the 
association's logo, a picture of the Appalachian Mountains, the date of 
the speech, and the employee's name. The employee may accept this item 
because it is similar to a plaque, is designed primarily for 
presentation, and has little intrinsic value.

    (3) Loans from banks and other financial institutions on terms 
generally available to the public;
    (4) Opportunities and benefits, including favorable rates and 
commercial discounts, 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): A Government employee is attending a 
free trade show on official time. The trade show is held in a public 
shopping area adjacent to the employee's office building. The employee 
voluntarily enters a drawing at an individual vendor's booth which is 
open to the public. She fills in an entry form on the vendor's display 
table and drops it into the contest box. The employee may accept the 
resulting prize because entry into the contest was not required by or 
related to her official duties.
    Example 2 to paragraph (b)(5): Attendees at a conference, which is 
not open to the public, are entered in a drawing for a weekend getaway 
to Bermuda as a result of being registered for the conference. A 
Government employee who attends the conference in his official capacity 
could not accept the prize under paragraph (b)(5) of this section, as 
the event is not open to the public.

    (6) Pension and other benefits resulting from continued 
participation in an employee welfare and benefits plan maintained by a 
current or former employer;

[[Page 615]]

    (7) Anything which is paid for by the Government or secured by the 
Government under Government contract;

    Example 1 to paragraph (b)(7): An employee at the Occupational 
Safety and Health Administration is assigned to travel away from her 
duty station to conduct an investigation of a collapse at a construction 
site. The employee's agency is paying for her travel expenses, including 
her airfare. The employee may accept and retain travel promotional 
items, such as frequent flyer miles, received as a result of her 
official travel, to the extent permitted by 5 U.S.C. 5702, note, and 41 
CFR part 301-53.

    (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) The spouse or one other guest of the presenting employee on 
any day when the employee is presenting, provided that others in 
attendance will generally be accompanied by a spouse or other guest, the 
offer of free attendance for the spouse or other guest is unsolicited, 
and the agency designee, orally or in writing, has authorized the 
presenting employee to accept;

    Example 1 to paragraph (b)(8): An employee of the Department of the 
Treasury who is assigned to participate in a panel discussion of 
economic issues as part of a one-day conference may accept the sponsor's 
waiver of the conference fee. Under the separate authority of Sec.  
2635.204(a), the employee may accept a token of appreciation that has a 
market value of $20 or less.
    Example 2 to paragraph (b)(8): An employee of the Securities and 
Exchange Commission is assigned to present the agency's views at a 
roundtable discussion of an ongoing working group. The employee may 
accept free attendance to the meeting under paragraph (b)(8) of this 
section because the employee has been assigned to present information at 
the meeting on behalf of the agency. If it is determined by the agency 
that it is essential that another employee accompany the presenting 
employee to the roundtable discussion, the accompanying employee may 
also accept free attendance to the meeting under paragraph (b)(8)(ii) of 
this section.
    Example 3 to paragraph (b)(8): An employee of the United States 
Trade and Development Agency is invited to attend a cocktail party 
hosted by a prohibited source. The employee believes that he will have 
an opportunity to discuss official matters with other attendees while at 
the event. Although the employee may voluntarily discuss official 
matters with other attendees, the employee has not been assigned to 
present information on behalf of the agency. The employee may not accept 
free attendance to the event under paragraph (b)(8) of this section.

    (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 means the cost that a member of the general public 
would reasonably expect to incur to purchase the gift. An employee who 
cannot ascertain the market value of a gift may estimate its market 
value by reference to the retail cost of similar items of like quality. 
The market value of a gift of a ticket entitling the holder to food, 
refreshments, entertainment, or any other benefit is deemed to be the 
face value of the ticket.

    Example 1 to paragraph (c): An employee who has been given a watch 
inscribed with the corporate logo of a prohibited source may determine 
its market value based on her observation that a comparable watch, not 
inscribed with a logo, generally sells for about $50.
    Example 2 to paragraph (c): During an official visit to a factory 
operated by a well-known athletic footwear manufacturer, an employee of 
the Department of Labor is offered a commemorative pair of athletic 
shoes manufactured at the factory. Although the cost incurred by the 
donor to manufacture the shoes was $17, the market value of the shoes 
would be the $100 that the employee

[[Page 616]]

would have to pay for the shoes on the open market.
    Example 3 to paragraph (c): A prohibited source has offered a 
Government employee a ticket to a charitable event consisting of a 
cocktail reception to be followed by an evening of chamber music. Even 
though the food, refreshments, and entertainment provided at the event 
may be worth only $20, the market value of the ticket is its $250 face 
value.
    Example 4 to paragraph (c): A company offers an employee of the 
Federal Communication Commission (FCC) free attendance for two to a 
private skybox at a ballpark to watch a major league baseball game. The 
skybox is leased annually by the company, which has business pending 
before the FCC. The skybox tickets provided to the employee do not have 
a face value. To determine the market value of the tickets, the employee 
must add the face value of two of the most expensive publicly available 
tickets to the game and the market value of any food, parking or other 
tangible benefits provided in connection with the gift of attendance 
that are not already included in the cost of the most expensive publicly 
available tickets.
    Example 5 to paragraph (c): An employee of the Department of 
Agriculture is invited to a reception held by a prohibited source. There 
is no entrance fee to the reception event or to the venue. To determine 
the market value of the gift, the employee must add the market value of 
any entertainment, food, beverages, or other tangible benefit provided 
to attendees in connection with the reception, but need not consider the 
cost incurred by the sponsor to rent or maintain the venue where the 
event is held. The employee may rely on a per-person cost estimate 
provided by the sponsor of the event, unless the employee or an agency 
designee has determined that a reasonable person would find that the 
estimate is clearly implausible.

    (d) Prohibited source means any person who:
    (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) Given because of the employee's official position. A gift is 
given because of the employee's official position if the gift is from a 
person other than an employee and would not have been given had the 
employee not held the status, authority, or duties associated with the 
employee's Federal position.

    Note to paragraph (e): Gifts between employees are subject to the 
limitations set forth in subpart C of this part.

    Example 1 to paragraph (e): Where free season tickets are offered by 
an opera guild to all members of the Cabinet, the gift is offered 
because of their official positions.
    Example 2 to paragraph (e): Employees at a regional office of the 
Department of Justice (DOJ) work in Government-leased space at a private 
office building, along with various private business tenants. A major 
fire in the building during normal office hours causes a traumatic 
experience for all occupants of the building in making their escape, and 
it is the subject of widespread news coverage. A corporate hotel chain, 
which does not meet the definition of a prohibited source for DOJ, 
seizes the moment and announces that it will give a free night's lodging 
to all building occupants and their families, as a public goodwill 
gesture. Employees of DOJ may accept, as this gift is not being given 
because of their Government positions. The donor's motivation for 
offering this gift is unrelated to the DOJ employees' status, authority, 
or duties associated with their Federal position, but instead is based 
on their mere presence in the building as occupants at the time of the 
fire.

    (f) Indirectly solicited or accepted. A gift which is solicited or 
accepted indirectly includes a gift:
    (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 Sec.  2635.808.

    Example 1 to paragraph (f)(2): An employee who must decline a gift 
of a personal computer pursuant to this subpart may not suggest that the 
gift be given instead to one of five charitable organizations whose 
names are provided by the employee.


[[Page 617]]


    (g) Free attendance includes waiver of all or part of the fee for an 
event or the provision of food, refreshments, entertainment, instruction 
or materials furnished to all attendees as an integral part of the 
event. It does not include travel expenses, lodgings, or entertainment 
collateral to the event. It does not include meals taken other than in a 
group setting with all other attendees, unless the employee is a 
presenter at the event and is invited to a separate meal for 
participating presenters that is hosted by the sponsor of the event. 
Where the offer of free attendance has been extended to an accompanying 
spouse or other guest, the market value of the gift of free attendance 
includes the market value of free attendance by both the employee and 
the spouse or other guest.



Sec.  2635.204  Exceptions to the prohibition for acceptance of certain gifts.

    Subject to the limitations in Sec.  2635.205, this section 
establishes exceptions to the prohibitions set forth in Sec.  
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. An employee may accept unsolicited gifts 
having an aggregate market value of $20 or less per source per occasion, 
provided that the aggregate market value of individual gifts received 
from any one person under the authority of this paragraph (a) does not 
exceed $50 in a calendar year. This exception does not apply to gifts of 
cash or of investment interests such as stock, bonds, or certificates of 
deposit. Where the market value of a gift or the aggregate market value 
of gifts offered on any single occasion exceeds $20, the employee may 
not pay the excess value over $20 in order to accept that portion of the 
gift or those gifts worth $20. Where the aggregate value of tangible 
items offered on a single occasion exceeds $20, the employee may decline 
any distinct and separate item in order to accept those items 
aggregating $20 or less.

    Example 1 to paragraph (a): An employee of the Securities and 
Exchange Commission and his 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. He and 
his spouse may attend the play only if he 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 her agency's role in the evolution of missile technology. 
At the conclusion of her 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 Sec.  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 his 
cousin, who is employed by the same corporation, if he can accept the 
birthday present 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 of $20 or less from the 
association or from another person attending the conference 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, a gift of $20 or less accepted 
under paragraph

[[Page 618]]

(a) of this section is a gift to the employee rather than to her 
employing agency.
    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. He 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 her a nicer gift than 
each could buy her 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. An employee may accept a 
gift given by an individual under circumstances which make it clear that 
the gift is motivated by a family relationship or personal friendship 
rather than the position of the employee. Relevant factors in making 
such a determination include the history and nature of the relationship 
and whether the family member or friend personally pays for the gift.

    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 
she wished, and her 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 he 
and the three partners have developed an amicable relationship 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 his personal capacity outside of 
work. He has used the site to keep in touch with friends, neighbors, 
coworkers, professional contacts, and other individuals he has 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 his official capacity when 
he 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. They later also 
granted one another access to join their social media networks through 
their respective social media accounts. However, they 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 him 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. In addition to those 
opportunities and benefits excluded from the definition of a gift by 
Sec.  2635.203(b)(4), an employee may accept:
    (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

[[Page 619]]

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; or
    (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.

    Example 1 to paragraph (c)(2): 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. Her membership in the group to which the discount is offered is 
related to Government employment because her membership is based on her 
status as a procurement official with the Government.
    Example 2 to paragraph (c)(2): 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)(2): 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.

    (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., 5 U.S.C. 5702, 
note, regarding frequent flyer miles).

    Example 1 to paragraph (c)(3): 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--(1) Awards. An employee may accept 
a bona fide award for meritorious public service or achievement and any 
item incident to the award, provided that:
    (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)(1): 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)(1): 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

[[Page 620]]

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)(1): 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 his spouse and 
children, attend the awards ceremony dinner and accept a crystal bowl 
worth $200 presented during the ceremony. However, where the 
organization has also offered airline tickets for the ambassador and his 
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 he 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. An award and an item 
incident to the award are made pursuant to an established program of 
recognition if:
    (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. An employee may accept an honorary degree from 
an institution of higher education, as defined at 20 U.S.C. 1001, or 
from a similar foreign institution of higher education, based on a 
written determination by an agency ethics official that the timing of 
the award of the degree would not cause a reasonable person to question 
the employee's impartiality in a matter affecting the institution.

    Note to paragraph (d)(3): 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)(3): 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. An employee who may accept an award or 
honorary degree pursuant to paragraph (d)(1) or (3) of this section may 
also accept free attendance to the event provided to the employee and to 
members of the employee's family by the sponsor of an event. In 
addition, the employee may also accept unsolicited offers of travel to 
and from the event provided to the employee and to members of the 
employee's family by the sponsor of the event. Travel expenses accepted 
under this paragraph (d)(4) must be added to the value of the award for 
purposes of determining whether the aggregate value of the award exceeds 
$200.
    (e) Gifts based on outside business or employment relationships. An 
employee may accept meals, lodgings, transportation and other benefits:
    (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)(1): 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 Sec.  2635.502, the employee may be disqualified from performing 
official duties affecting her spouse's employer.
    Example 2 to paragraph (e)(1): Where 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 his spouse 
received a special invitation for herself and the employee.


[[Page 621]]


    (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)(2): 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 her 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 disqualification requirements of subpart F of this 
part applicable when seeking employment; or

    Example 1 to paragraph (e)(3): 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 she has properly 
disqualified herself from further work on the regulations as required by 
subpart F of this part, she may enter into employment discussions with 
the company and may accept the company's offer to pay for her 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)(4): An employee of the Department of the 
Army is invited by her 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'' means any form of non-Federal employment or business 
relationship involving the provision of personal services.
    (f) Gifts in connection with political activities permitted by the 
Hatch Act Reform Amendments. An employee who, in accordance with the 
Hatch Act Reform Amendments of 1993, at 5 U.S.C. 7323, may take an 
active part in political management or in political campaigns, may 
accept meals, lodgings, transportation, and other benefits, including 
free attendance at events, for the employee and an accompanying spouse 
or other guests, when provided, in connection with such active 
participation, by a political organization described in 26 U.S.C. 
527(e). Any other employee, such as a security officer, whose official 
duties require him or her to accompany an employee to a political event, 
may accept meals, free attendance, and entertainment provided at the 
event by such an organization.

    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--(1) 
Authorization. When authorized in writing by the agency designee 
pursuant to paragraph (g)(3) of this section, an employee may accept an 
unsolicited gift of free attendance at all or appropriate parts of a 
widely attended gathering. For an employee who is subject to a leave 
system, attendance at the event will be on the employee's own time or, 
if authorized by the employee's agency, on excused absence pursuant to 
applicable guidelines for granting such absence, or otherwise without 
charge to the employee's leave account.
    (2) Widely attended gatherings. A gathering is widely attended if it 
is expected that a large number of persons

[[Page 622]]

will attend, that 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 that there will be an 
opportunity to exchange ideas and views among invited persons.
    (3) Written authorization by the agency designee. The agency 
designee may authorize an employee or employees to accept a gift of free 
attendance at all or appropriate parts of a widely attended gathering 
only if the agency designee issues a written determination after finding 
that:
    (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 $390.
    (4) Determination of agency interest. In determining whether 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, the agency designee may consider 
relevant factors including:
    (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. The 
cost of the employee's attendance will be considered to be provided by a 
person other than the sponsor of the event where such person designates 
the employee to be invited and bears the cost of the employee's 
attendance through a contribution or other payment intended to 
facilitate the employee's attendance. Payment of dues or a similar 
assessment to a sponsoring organization does not constitute a payment 
intended to facilitate a particular employee's attendance.
    (6) Accompanying spouse or other guest. When others in attendance 
will generally be accompanied by a spouse or other guest, and where the 
invitation is from the same person who has invited the employee, the 
agency designee may authorize an employee to accept an unsolicited 
invitation of free attendance to an accompanying spouse or one other 
accompanying guest to participate in all or a portion of the event at 
which the employee's free attendance is permitted under paragraph (g)(1) 
this section. The authorization required by this paragraph (g)(6) must 
be provided in writing.

    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 (a) the 
contractor, rather than the association, provided the cost of their 
attendance; (b) the contractor designated the specific employees to 
receive the gift of free attendance; and (c) the value of the gift 
exceeds $390 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.

[[Page 623]]

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 (a) the contractor, rather than the 
association, provided the cost of their attendance; (b) the contractor 
designated the specific employees to receive the gift of free 
attendance; and (c) 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 he 
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 $390 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 she receives a written authorization from the agency designee, she 
may accept the invitation from the news organization because more than 
100 persons will attend and the cost of the ticket does not exceed $390. 
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 $390.
    Example 5 to paragraph (g): An employee of the Department of Energy 
(DOE) and his 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 her spouse. The DOE 
official believes the dinner party will provide him 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 his 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 
her 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 Sec.  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'' set forth in Sec.  2635.203(g) excludes travel, and the 
market value of the transportation would exceed $20.

    (h) Social invitations. An employee may accept food, refreshments, 
and entertainment, not including travel or lodgings, for the employee 
and an accompanying spouse or other guests, at a social event attended 
by several persons if:
    (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

[[Page 624]]

cause a reasonable person with knowledge of the relevant facts to 
question the employee's integrity or impartiality, consistent with Sec.  
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 she is being invited 
because of her official position.

    (i) Meals, refreshments, and entertainment in foreign areas. An 
employee assigned to duty in, or on official travel to, a foreign area 
as defined in 41 CFR 300-3.1 may accept unsolicited food, refreshments, 
or entertainment in the course of a breakfast, luncheon, dinner, or 
other meeting or event provided:
    (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 Per Diem Allowances 
for Foreign Areas, Per Diem Supplement Section 925 to the Standardized 
Regulations (GC-FA), available on the Internet 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 Overseas 
Private Investment 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 where 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. Because of 
considerations relating to the conduct of their offices, including those 
of protocol and etiquette, the President or the Vice President may 
accept any gift on his or her own behalf or on behalf of any family 
member, provided that such acceptance does not violate Sec.  2635.205(a) 
or (b), 18 U.S.C. 201(b) or 201(c)(3), or the Constitution of the United 
States.
    (k) Gifts authorized by supplemental agency regulation. An employee 
may accept any gift when acceptance of the gift is specifically 
authorized by a supplemental agency regulation issued with the 
concurrence of the Office of Government Ethics, pursuant to Sec.  
2635.105.
    (l) Gifts accepted under specific statutory authority. The 
prohibitions on acceptance of gifts from outside sources contained in 
this subpart do not apply to any item which a statute specifically 
authorizes an employee to accept. Gifts which may be accepted by an 
employee under the authority of specific statutes include, but are not 
limited to:
    (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. (1) An employee may accept 
unsolicited gifts of informational materials, provided that:
    (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

[[Page 625]]

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 Sec.  2635.201(b).
    (2) Informational materials are writings, recordings, documents, 
records, or other items that:
    (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 Sec.  2635.201(b). The 
employee may not accept the gift under paragraph (m) of this section.

[81 FR 81648, Nov. 18, 2016, as amended at 82 FR 22736, May 18, 2017]



Sec.  2635.205  Limitations on use of exceptions.

    Notwithstanding any exception provided in this subpart, other than 
Sec.  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): A purchasing agent for a Department of 
Veterans Affairs medical center routinely deals with representatives of 
pharmaceutical manufacturers who provide information about new company 
products. Because of his crowded calendar, the purchasing agent has 
offered to meet with manufacturer representatives during his lunch hours 
Tuesdays through Thursdays, and the representatives routinely arrive at 
the employee's office bringing a sandwich and a soft drink for the 
employee. Even though the market value of each of the lunches is less 
than $6 and the aggregate value from any one manufacturer does not 
exceed the $50 aggregate limitation in Sec.  2635.204(a) on gifts of $20 
or less, the practice of accepting even these modest gifts on a 
recurring basis is improper.

    (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 a public official 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 his or her 
official duty. 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 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

[[Page 626]]

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 Sec.  
2635.105.



Sec.  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 Sec.  2635.106.
    (1) Gifts of tangible items. The employee must promptly return any 
tangible item to the donor or pay the donor its market value; or, in the 
case of a tangible item with a market value of $100 or less, the 
employee may destroy the item. An employee who cannot ascertain the 
actual market value of an item may estimate its market value by 
reference to the retail cost of similar items of like quality.

    Example 1 to paragraph (a)(1): 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)(1): 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 his 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. When it is not practical to return a 
tangible item in accordance with paragraph (a)(1) of this section 
because the item is perishable, the employee may, at the discretion of 
the employee's supervisor or the agency designee, give the item to an 
appropriate charity, share the item within the recipient's office, or 
destroy the item.

    Example 1 to paragraph (a)(2): 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. The employee must promptly reimburse the 
donor the market value for any entertainment, favor, service, benefit or 
other intangible. Subsequent reciprocation by the employee does not 
constitute reimbursement.

    Example 1 to paragraph (a)(3): A Department of Defense employee 
wishes to attend a charitable event to which he has been offered a $300 
ticket by a prohibited source. Although his attendance is not in the 
interest of the agency under Sec.  2635.204(g), he may attend if he 
reimburses the donor the $300 face value of the ticket.

    (4) Gifts from foreign governments or international organizations. 
The employee must dispose of gifts from foreign governments or 
international organizations in accordance with 41 CFR part 102-42.
    (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) An employee who, on his or her own initiative, promptly complies 
with the requirements of this section will not be deemed to have 
improperly accepted an unsolicited gift. An employee who promptly 
consults his or her agency ethics official to determine whether 
acceptance of an unsolicited gift is proper and who, upon the advice of 
the

[[Page 627]]

ethics official, returns the gift or otherwise disposes 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



Sec.  2635.301  Overview.

    This subpart contains standards that prohibit an employee from 
giving, donating to, or soliciting contributions for, a gift to an 
official superior and from accepting a gift from an employee receiving 
less pay than himself, unless the item is excluded from the definition 
of a gift or falls within one of the exceptions set forth in this 
subpart.



Sec.  2635.302  General standards.

    (a) Gifts to superiors. Except as provided in this subpart, an 
employee may not:
    (1) Directly or indirectly, give a gift to or make a donation toward 
a gift for an official superior; or
    (2) Solicit a contribution from another employee for a gift to 
either his own or the other employee's official superior.
    (b) Gifts from employees receiving less pay. Except as provided in 
this subpart, an employee may not, directly or indirectly, accept a gift 
from an employee receiving less pay than himself unless:
    (1) The two employees are not in a subordinate-official superior 
relationship; and
    (2) There is a personal relationship between the two employees that 
would justify the gift.
    (c) Limitation on use of exceptions. Notwithstanding any exception 
provided in this subpart, an official superior shall not coerce the 
offering of a gift from a subordinate.



Sec.  2635.303  Definitions.

    For purposes of this subpart, the following definitions shall apply:
    (a) Gift has the meaning set forth in Sec.  2635.203(b). For 
purposes of that definition an employee will be deemed to have paid 
market value for any benefit received as a result of his participation 
in any carpool or other such mutual arrangement involving another 
employee or other employees if he bears his fair proportion of the 
expense or effort involved.
    (b) Indirectly, for purposes of Sec.  2635.302(b), has the meaning 
set forth in Sec.  2635.203(f). For purposes of Sec.  2635.302(a), it 
includes a gift:
    (1) Given with the employee's knowledge and acquiescence by his 
parent, sibling, spouse, child, or dependent relative; or
    (2) Given by a person other than the employee under circumstances 
where 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) Subject to paragraph (a) of this section, market value has the 
meaning set forth in Sec.  2635.203(c).
    (d) Official superior means any other employee, other than the 
President and the Vice President, including but not limited to an 
immediate supervisor, whose official responsibilities include directing 
or evaluating the performance of the employee's official duties or those 
of any other official superior of the employee. For purposes of this 
subpart, an employee is considered to be the subordinate of any of his 
official superiors.
    (e) Solicit means to request contributions by personal communication 
or by general announcement.
    (f) Voluntary contribution means a contribution given freely, 
without pressure or coercion. A contribution is not voluntary unless it 
is made in an amount determined by the contributing employee, except 
that where an amount for a gift is included in the cost for a luncheon, 
reception or similar event, an employee who freely chooses to pay a 
proportionate share of the total cost in order to attend will be deemed 
to have made a voluntary contribution. Except in the case of 
contributions for a gift included in the cost of a luncheon, reception 
or similar event, a statement that an employee may choose to contribute 
less or not at

[[Page 628]]

all shall accompany any recommendation of an amount to be contributed 
for a gift to an official superior.

    Example 1: A supervisory employee of the Agency for International 
Development has just been reassigned from Washington, DC to Kabul, 
Afghanistan. As a farewell party, 12 of her subordinates have decided to 
take her out to lunch at the Khyber Repast. It is understood that each 
will pay for his own meal and that the cost of the supervisor's lunch 
will be divided equally among the twelve. Even though the amount they 
will contribute is not determined until the supervisor orders lunch, the 
contribution made by those who choose to participate in the farewell 
lunch is voluntary.



Sec.  2635.304  Exceptions.

    The prohibitions set forth in Sec.  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 Sec.  2635.302(a) and (b) may only be made in accordance with 
paragraph (c) of this section.
    (a) General exceptions. On an occasional basis, including any 
occasion on which gifts are traditionally given or exchanged, the 
following may be given to an official superior or accepted from a 
subordinate or other employee receiving less pay:
    (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) Leave transferred under subpart I of part 630 of this title to 
an employee who is not an immediate supervisor, unless obtained in 
violation of Sec.  630.912 of this title.

    Example 1: Upon returning to work following a vacation at the beach, 
a claims examiner with the Department of Veterans Affairs may give his 
supervisor, and his supervisor may accept, a bag of saltwater taffy 
purchased on the boardwalk for $8.
    Example 2: An employee of the Federal Deposit Insurance Corporation 
whose bank examination responsibilities require frequent travel may not 
bring her supervisor, and her supervisor may not accept, souvenir coffee 
mugs from each of the cities she visits in the course of performing her 
duties, even though each of the mugs costs less than $5. Gifts given on 
this basis are not occasional.
    Example 3: The Secretary of Labor has invited the agency's General 
Counsel to a dinner party at his home. The General Counsel may bring a 
$15 bottle of wine to the dinner party and the Secretary may accept this 
customary hostess gift from his subordinate, even though its cost is in 
excess of $10.
    Example 4: For Christmas, a secretary may give his supervisor, and 
the supervisor may accept, a poinsettia plant purchased for $10 or less. 
The secretary may also invite his supervisor to a Christmas party in his 
home and the supervisor may attend.

    (b) Special, infrequent occasions. A gift appropriate to the 
occasion may be given to an official superior or accepted from a 
subordinate or other employee receiving less pay:
    (1) In recognition of infrequently occurring occasions of personal 
significance such as marriage, illness, 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: The administrative assistant to the personnel director of 
the Tennessee Valley Authority may send a $30 floral arrangement to the 
personnel director who is in the hospital recovering from surgery. The 
personnel director may accept the gift.
    Example 2: A chemist employed by the Food and Drug Administration 
has been invited to the wedding of the lab director who is his official 
superior. He may give the lab director and his bride, and they may 
accept, a place setting in the couple's selected china pattern purchased 
for $70.
    Example 3: Upon the occasion of the supervisor's retirement from 
Federal service, an employee of the Fish and Wildlife Service may give 
her supervisor a book of wildlife photographs which she purchased for 
$19. The retiring supervisor may accept the book.

    (c) Voluntary contributions. An employee may solicit voluntary 
contributions of nominal amounts from fellow employees for an 
appropriate gift to an official superior and an employee may make a 
voluntary contribution of a

[[Page 629]]

nominal amount to an appropriate gift to an official superior:
    (1) On a special, infrequent occasion as described in paragraph (b) 
of this section; or
    (2) On an occasional basis, for items such as food and refreshments 
to be shared in the office among several employees.
    An employee may accept such gifts to which a subordinate or other 
employee receiving less pay than himself has contributed.

    Example 1: To mark the occasion of his retirement, members of the 
immediate staff of the Under Secretary of the Army would like to give 
him a party and provide him with a gift certificate. They may distribute 
an announcement of the party and include a nominal amount for a 
retirement gift in the fee for the party.
    Example 2: The General Counsel of the National Endowment for the 
Arts may not collect contributions for a Christmas gift for the 
Chairman. Christmas occurs annually and is not an occasion of personal 
significance.
    Example 3: Subordinates may not take up a collection for a gift to 
an official superior on the occasion of the superior's swearing in or 
promotion to a higher grade position within the supervisory chain of 
that organization. These are not events that mark the termination of the 
subordinate-official superior relationship, nor are they events of 
personal significance within the meaning of Sec.  2635.304(b). However, 
subordinates may take up a collection and employees may contribute $3 
each to buy refreshments to be consumed by everyone in the immediate 
office to mark either such occasion.
    Example 4: Subordinates may each contribute a nominal amount to a 
fund to give a gift to an official superior upon the occasion of that 
superior's transfer or promotion to a position outside the organization.
    Example 5: An Assistant Secretary at the Department of the Interior 
is getting married. His secretary has decided that a microwave oven 
would be a nice gift from his staff and has informed each of the 
Assistant Secretary's subordinates that they should contribute $5 for 
the gift. Her method of collection is improper. Although she may 
recommend a $5 contribution, the recommendation must be coupled with a 
statement that the employee whose contribution is solicited is free to 
contribute less or nothing at all.



                Subpart D_Conflicting Financial Interests



Sec.  2635.401  Overview.

    This subpart contains two provisions relating to financial 
interests. One is a disqualification 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 Sec.  2635.403. Notwithstanding that his acquisition or 
holding of a particular interest is proper, an employee is prohibited in 
accordance with Sec.  2635.402 of this subpart from participating in an 
official capacity in any particular matter in which, to his knowledge, 
he or any person whose interests are imputed to him has a financial 
interest, if the particular matter will have a direct and predictable 
effect on that interest. See also part 2640 of this chapter, for 
additional guidance amplifying Sec.  2635.402.

[57 FR 35042, Aug. 7, 1992, as amended at 62 FR 48747, Sept. 17, 1997]



Sec.  2635.402  Disqualifying financial interests.

    (a) Statutory prohibition. An employee is prohibited by criminal 
statute, 18 U.S.C. 208(a), from participating personally and 
substantially in an official capacity in any particular matter in which, 
to his knowledge, he or any person whose interests are imputed to him 
under this statute has a financial interest, if the particular matter 
will have a direct and predictable effect on that interest.

    Note: 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 he is 
negotiating for or has an arrangement concerning future employment. In 
all other cases where the employee's participation would violate 18 
U.S.C. 208(a), an employee shall disqualify himself from participation 
in the 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. For purposes of this section, the following 
definitions shall apply:

[[Page 630]]

    (1) Direct and predictable effect. (i) A particular matter will have 
a direct effect on a financial interest if there is a close causal link 
between any decision or action to be taken in the matter and any 
expected effect of the matter on the financial interest. An effect may 
be direct even though it does not occur immediately. A particular matter 
will not have a direct effect on a financial interest, however, if the 
chain of causation is attenuated or is contingent upon the occurrence of 
events that are speculative or that are independent of, and unrelated 
to, the matter. A particular matter that has an effect on a financial 
interest only as a consequence of its effects on the general economy 
does not have a direct effect within the meaning of this subpart.
    (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: 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 above standards, 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: 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 he and his wife 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 both his and his 
wife's financial interests, the employee cannot participate on the 
technical evaluation team unless his disqualification has been waived.
    Example 2: Upon assignment to the technical evaluation panel, the 
employee in the preceding example 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 is 
not disqualified 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. For purposes of 18 U.S.C. 208(a) and this 
subpart, the financial interests of the following persons will serve to 
disqualify an employee to the same extent as if they were the employee's 
own 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: 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 her 
personal financial interests will not be affected, the employee must 
disqualify herself 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 her as a member of its board of directors.
    Example 2: 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 
direct ownership interest in the company. Nor does she have an indirect 
ownership interest, as would be the case, for example, if she were 
participating in a pension

[[Page 631]]

plan that held stock in the company. Her position with the company is 
such that the granting or withholding of FDA approval will not have a 
direct and predictable effect on her salary or on her continued 
employment with the company. Since the FDA approval process will not 
affect his spouse's financial interests, the employee is not 
disqualified under Sec.  2635.402 from participating in that process. 
Nevertheless, the financial interests of the spouse's employer may be 
disqualifying under the impartiality principle, as implemented at Sec.  
2635.502.

    (3) Particular matter. The term particular matter encompasses only 
matters that involve deliberation, decision, or action that is focused 
upon the interests of specific persons, or a discrete and identifiable 
class of persons. Such a matter is covered by this subpart even if it 
does not involve formal parties and may include governmental action such 
as legislation or policy-making that is narrowly focused on the 
interests of such a discrete and identifiable class of persons. The term 
particular matter, however, does not extend to the consideration or 
adoption of broad policy options that are directed to the interests of a 
large and diverse group of persons. The particular matters covered by 
this subpart include a judicial or other proceeding, application, 
request for a ruling or other determination, contract, claim, 
controversy, charge, accusation or arrest.

    Example 1: 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: Consideration by the Interstate Commerce Commission of 
regulations establishing safety standards for trucks on interstate 
highways involves a particular matter.

    (4) Personal and substantial. To participate personally means to 
participate directly. It includes the direct and active supervision of 
the participation of a subordinate in the matter. To participate 
substantially means that the employee's involvement is of significance 
to the matter. Participation may be substantial even though it is not 
determinative of the outcome of a particular matter. However, it 
requires more than official responsibility, knowledge, perfunctory 
involvement, or involvement on an administrative or peripheral issue. A 
finding of substantiality should be based not only on the effort devoted 
to a matter, but also on the importance of the effort. While a series of 
peripheral involvements may be insubstantial, the single act of 
approving or participating in a critical step may be substantial. 
Personal and substantial participation may occur when, for example, an 
employee participates through decision, approval, disapproval, 
recommendation, investigation or the rendering of advice in a particular 
matter.
    (c) Disqualification. Unless the employee is authorized to 
participate in the particular matter by virtue of a waiver or exemption 
described in paragraph (d) of this section or because the interest has 
been divested in accordance with paragraph (e) of this section, an 
employee shall disqualify himself from participating in a particular 
matter in which, to his knowledge, he or a person whose interests are 
imputed to him has a financial interest, if the particular matter will 
have a direct and predictable effect on that interest. Disqualification 
is accomplished by not participating in the particular matter.
    (1) Notification. An employee who becomes aware of the need to 
disqualify himself from participation in a particular matter to which he 
has been assigned should notify the person responsible for his 
assignment. An employee who is responsible for his own assignment should 
take whatever steps are necessary to ensure that he does not participate 
in the matter from which he is disqualified. Appropriate oral or written 
notification of the employee's disqualification may be made to coworkers 
by the employee or a supervisor to ensure that the employee is not 
involved in a matter from which he is disqualified.
    (2) Documentation. An employee need not file a written 
disqualification statement unless he is required by part 2634 of this 
chapter to file written evidence of compliance with an ethics agreement 
with the Office of Government Ethics or is asked by an agency ethics 
official or the person responsible for his assignment to file a written 
disqualification statement. However, an

[[Page 632]]

employee may elect to create a record of his actions by providing 
written notice to a supervisor or other appropriate official.

    Example 1: 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 her vacation property and, thus, 
she is disqualified from participating in any way in the Department's 
deliberations or decisions regarding the annexation. Because she is 
responsible for determining which matters she will work on, she may 
accomplish her disqualification merely by ensuring that she does not 
participate in the matter. Because of the level of her position, 
however, the Assistant Secretary might be wise to establish a record 
that she has acted properly by providing a written disqualification 
statement to an official superior and by providing written notification 
of the disqualification to subordinates to ensure that they do not raise 
or discuss with her any issues related to the annexation.

    (d) Waiver of or exemptions from disqualification. An employee who 
would otherwise be disqualified by 18 U.S.C. 208(a) may be permitted to 
participate in a particular matter where the otherwise disqualifying 
financial interest is the subject of a regulatory exemption or 
individual waiver described in this paragraph, or results from certain 
Indian birthrights as described in 18 U.S.C. 208(b)(4).
    (1) Regulatory exemptions. Under 18 U.S.C. 208(b)(2), regulatory 
exemptions of general applicability have been issued by the Office of 
Government Ethics, based on its determination that particular interests 
are too remote or too inconsequential to affect the integrity of the 
services of employees to whom those exemptions apply. See the 
regulations in subpart B of part 2640 of this chapter, which supersede 
any preexisting agency regulatory exemptions.
    (2) Individual waivers. An individual waiver enabling the employee 
to participate in one or more particular matters may be issued under 18 
U.S.C. 208(b)(1) if, in advance of the employee's participation:
    (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 disqualifying 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 also 
subpart C of part 2640 of this chapter, for additional guidance.
    (3) Federal advisory committee member waivers. An individual waiver 
may be issued under 18 U.S.C. 208(b)(3) to a special Government employee 
serving on, or under consideration for appointment to, an advisory 
committee within the meaning of the Federal Advisory Committee Act if 
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):
    (i) Reviews the financial disclosure report filed by the special 
Government employee pursuant to the Ethics in Government Act of 1978; 
and
    (ii) Certifies in writing that the need for the individual's 
services outweighs the potential for a conflict of interest created by 
the otherwise disqualifying financial interest. See also subpart C of 
part 2640 of this chapter, for additional guidance.
    (4) Consultation and notification regarding waivers. When 
practicable, an official is required to consult formally or informally 
with the Office of Government Ethics prior to granting a waiver referred 
to in paragraph (d)(2) or (3) of this section. A copy of each such 
waiver is to be forwarded to the Director of the Office of Government 
Ethics.
    (e) Divestiture of a disqualifying financial interest. Upon sale or 
other divestiture of the asset or other interest that causes his 
disqualification from participation in a particular matter, 18 U.S.C. 
208(a) and paragraph (c) of this section will no longer prohibit the 
employee's participation in the matter.
    (1) Voluntary divestiture. An employee who would otherwise be 
disqualified

[[Page 633]]

from participation in a particular matter may voluntarily sell or 
otherwise divest himself of the interest that causes the 
disqualification.
    (2) Directed divestiture. An employee may be required to sell or 
otherwise divest himself of the disqualifying financial interest if his 
continued holding of that interest is prohibited by statute or by agency 
supplemental regulation issued in accordance with Sec.  2635.403(a), or 
if the agency determines in accordance with Sec.  2635.403(b) that a 
substantial conflict exists between the financial interest and the 
employee's duties or accomplishment of the agency's mission.
    (3) Eligibility for special tax treatment. An employee who is 
directed to divest an interest may be eligible to defer the tax 
consequences of divestiture under subpart J of part 2634 of this 
chapter. An employee who divests before obtaining a certificate of 
divestiture will not be eligible for this special tax treatment.
    (f) Official duties that give rise to potential conflicts. Where an 
employee's official duties create a substantial likelihood that the 
employee may be assigned to a particular matter from which he is 
disqualified, the employee should advise his supervisor or other person 
responsible for his assignments of that potential so that conflicting 
assignments can be avoided, consistent with the agency's needs.

[57 FR 35042, Aug. 7, 1992, as amended at 62 FR 48747, Sept. 17, 1997]



Sec.  2635.403  Prohibited financial interests.

    An employee shall not acquire or hold any financial interest that he 
is 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.

    Note: 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.

    (a) Agency regulation prohibiting certain financial interests. An 
agency may, by supplemental agency regulation issued after February 3, 
1993, prohibit or restrict the acquisition or holding of a financial 
interest or a class of financial interests by agency employees, or any 
category of agency employees, and the spouses and minor children of 
those employees, based on the agency's determination that the 
acquisition or holding of such financial interests would cause a 
reasonable person to question the impartiality and objectivity with 
which agency programs are administered. Where the agency restricts or 
prohibits the holding of certain financial interests by its employees' 
spouses or minor children, any such prohibition or restriction shall be 
based on a determination that there is a direct and appropriate nexus 
between the prohibition or restriction as applied to spouses and minor 
children and the efficiency of the service.
    (b) Agency determination of substantial conflict. An agency may 
prohibit or restrict an individual employee from acquiring or holding a 
financial interest or a class of financial interests based upon the 
agency designee's determination that the holding of such interest or 
interests will:
    (1) Require the employee's disqualification from matters so central 
or critical to the performance of his official duties that the 
employee's ability to perform the duties of his 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 disqualified by reason of the 
financial interest.

    Example 1: An Air Force employee who owns stock in a major aircraft 
engine manufacturer is being considered for promotion to a position that 
involves responsibility for development of a new fighter airplane. If 
the agency determined that engineering and other decisions about the Air 
Force's requirements for the fighter would directly and predictably 
affect his financial interests, the employee could not, by virtue of 18 
U.S.C. 208(a), perform these significant duties of the position while 
retaining his stock in the company. The agency can require the employee 
to sell his stock as a condition of being selected for the position 
rather than allowing him to disqualify himself in particular matters.


[[Page 634]]


    (c) Definition of financial interest. For purposes of this section:
    (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 be 
disqualifying under 18 U.S.C. 208(a) and Sec.  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, his spouse, or dependent child or any right as a 
beneficiary of an estate that has not been settled.

    Example 1: A regulatory agency has concluded that ownership by its 
employees of stock in entities regulated by the agency would 
significantly diminish public confidence in the agency's performance of 
its regulatory functions and thereby interfere with the accomplishment 
of its mission. In its supplemental agency regulations, the agency may 
prohibit its employees from acquiring or continuing to hold stock in 
regulated entities.
    Example 2: An agency that insures bank deposits may, by supplemental 
agency regulation, prohibit its employees who are bank examiners from 
obtaining loans from banks they examine. Examination of a member bank 
could have no effect on an employee's fixed obligation to repay a loan 
from that bank and, thus, would not affect an employee's financial 
interests so as to require disqualification under Sec.  2635.402. 
Nevertheless, a loan from a member bank is a discrete financial interest 
within the meaning of Sec.  2635.403(c) that may, when appropriate, be 
prohibited by supplemental agency regulation.

    (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 Sec.  2635.402(b)(2) (iii) 
or (iv).

    Example 1. The Foundation for the Preservation of Wild Horses 
maintains herds of horses that graze on public and private lands. 
Because its costs are affected by Federal policies regarding grazing 
permits, the Foundation routinely comments on all proposed rules 
governing use of Federal grasslands issued by the Bureau of Land 
Management. BLM may require an employee to resign his uncompensated 
position as Vice President of the Foundation as a condition of his 
promotion to a policy-level position within the Bureau rather than 
allowing him to rely on disqualification in particular cases.

    (d) Reasonable period to divest or terminate. Whenever an agency 
directs divestiture of a financial interest under paragraph (a) or (b) 
of this section, the employee shall be given a reasonable period of 
time, considering the nature of his particular duties and the nature and 
marketability of the interest, within which to comply with the agency's 
direction. Except in cases of unusual hardship, as determined by the 
agency, a reasonable period shall not exceed 90 days from the date 
divestiture is first directed. However, as long as the employee 
continues to hold the financial interest, he remains subject to any 
restrictions imposed by this subpart.
    (e) Eligibility for special tax treatment. An employee required to 
sell or otherwise divest a financial interest may be eligible to defer 
the tax consequences of divestiture under subpart J of part 2634 of this 
chapter.

[57 FR 35042, Aug. 7, 1992, as amended at 59 FR 4780, Feb. 2, 1994; 60 
FR 6391, Feb. 2, 1995; 60 FR 66858, Dec. 27, 1995; 61 FR 40951, Aug. 7, 
1996; 62 FR 48748, Sept. 17, 1996]



          Subpart E_Impartiality in Performing Official Duties



Sec.  2635.501  Overview.

    (a) This subpart contains two provisions intended to ensure that an 
employee takes appropriate steps to avoid an appearance of loss of 
impartiality in the performance of his official duties. Under Sec.  
2635.502, unless he receives prior authorization, an employee should not 
participate in a particular matter involving specific parties which

[[Page 635]]

he knows is likely to affect the financial interests of a member of his 
household, or in which he knows a person with whom he has a covered 
relationship is or represents a party, if he determines that a 
reasonable person with knowledge of the relevant facts would question 
his impartiality in the matter. An employee who is concerned that other 
circumstances would raise a question regarding his impartiality should 
use the process described in Sec.  2635.502 to determine whether he 
should or should not participate in a particular matter.
    (b) Under Sec.  2635.503, an employee who has received an 
extraordinary severance or other payment from a former employer prior to 
entering Government service is subject, in the absence of a waiver, to a 
two-year period of disqualification from participation in particular 
matters in which that former employer is or represents a party.

    Note: Questions regarding impartiality necessarily arise when an 
employee's official duties impact upon the employee's own financial 
interests or those of certain other persons, such as the employee's 
spouse or minor child. An employee is prohibited by criminal statute, 18 
U.S.C. 208(a), from participating personally and substantially in an 
official capacity in any particular matter in which, to his knowledge, 
he, his spouse, general partner or minor child has a financial interest, 
if the particular matter will have a direct and predictable effect on 
that interest. The statutory prohibition also extends to an employee's 
participation in a particular matter in which, to his knowledge, an 
organization in which the employee is serving as officer, director, 
trustee, general partner or employee, or with whom he is negotiating or 
has an arrangement concerning prospective employment has a financial 
interest. Where the employee's participation in a particular matter 
would affect any one of these financial interests, the standards set 
forth in subparts D or F of this part apply and only a statutory waiver 
or exemption, as described in Sec. Sec.  2635.402(d) and 2635.605(a), 
will enable the employee to participate in that matter. The 
authorization procedures in Sec.  2635.502(d) may not be used to 
authorize an employee's participation in any such matter. Where the 
employee complies with all terms of the waiver, the granting of a 
statutory waiver will be deemed to constitute a determination that the 
interest of the Government in the employee's participation outweighs the 
concern that a reasonable person may question the integrity of agency 
programs and operations. Similarly, where the employee meets all 
prerequisites for the application of one of the exemptions set forth in 
subpart B of part 2640 of this chapter, that also constitutes a 
determination that the interest of the Government in the employee's 
participation outweighs the concern that a reasonable person may 
question the integrity of agency programs and operations.

[57 FR 35042, Aug. 7, 1992, as amended at 62 FR 48748, Sept. 17, 1997]



Sec.  2635.502  Personal and business relationships.

    (a) Consideration of appearances by the employee. Where 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 his household, or knows that a person with whom he has a 
covered relationship is or represents a party to such matter, and where 
the employee determines that the circumstances would cause a reasonable 
person with knowledge of the relevant facts to question his impartiality 
in the matter, the employee should not participate in the matter unless 
he has informed the agency designee of the appearance problem and 
received authorization from the agency designee in accordance with 
paragraph (d) of this section.
    (1) In considering whether a relationship would cause a reasonable 
person to question his impartiality, an employee may seek the assistance 
of his supervisor, an agency ethics official or the agency designee.
    (2) An employee who is concerned that circumstances other than those 
specifically described in this section would raise a question regarding 
his impartiality should use the process described in this section to 
determine whether he should or should not participate in a particular 
matter.
    (b) Definitions. For purposes of this section:
    (1) An employee has a covered relationship with:
    (i) A person, other than a prospective employer described in Sec.  
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: An employee who is seeking employment within the meaning of 
Sec.  2635.603 shall

[[Page 636]]

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 dependent 
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.

    Note: Nothing in this section shall be construed to suggest that an 
employee should not participate in a matter because of his political, 
religious or moral views.

    (2) Direct and predictable effect has the meaning set forth in Sec.  
2635.402(b)(1).
    (3) Particular matter involving specific parties has the meaning set 
forth in Sec.  2637.102(a)(7) of this chapter.

    Example 1: An employee of the General Services Administration has 
made an offer to purchase a restaurant owned by a local developer. The 
developer has submitted an offer in response to a GSA solicitation for 
lease of office space. Under the circumstances, she would be correct in 
concluding that a reasonable person would be likely to question her 
impartiality if she were to participate in evaluating that developer's 
or its competitor's lease proposal.
    Example 2: An employee of the Department of Labor is providing 
technical assistance in drafting occupational safety and health 
legislation that will affect all employers of five or more persons. His 
wife is employed as an administrative assistant by a large corporation 
that will incur additional costs if the proposed legislation is enacted. 
Because the legislation is not a particular matter involving specific 
parties, the employee may continue to work on the legislation and need 
not be concerned that his wife's employment with an affected corporation 
would raise a question concerning his impartiality.
    Example 3: An employee of the Defense Logistics Agency who has 
responsibilities for testing avionics being produced by an Air Force 
contractor has just learned that his sister-in-law has accepted 
employment as an engineer with the contractor's parent corporation. 
Where the parent corporation is a conglomerate, the employee could 
reasonably conclude that, under the circumstances, a reasonable person 
would not be likely to question his impartiality if he were to continue 
to perform his test and evaluation responsibilities.
    Example 4: An engineer has just resigned from her position as vice 
president of an electronics company in order to accept employment with 
the Federal Aviation Administration in a position involving procurement 
responsibilities. Although the employee did not receive an extraordinary 
payment in connection with her resignation and has severed all financial 
ties with the firm, under the circumstances she would be correct in 
concluding that her former service as an officer of the company would be 
likely to cause a reasonable person to question her impartiality if she 
were to participate in the administration of a DOT contract for which 
the firm is a first-tier subcontractor.
    Example 5: An employee of the Internal Revenue Service is a member 
of a private organization whose purpose is to restore a Victorian-era 
railroad station and she chairs its annual fundraising drive. Under the 
circumstances, the employee would be correct in concluding that her 
active membership in the organization would be likely to cause a 
reasonable person to question her impartiality if she were to 
participate in an IRS determination regarding the tax-exempt status of 
the organization.

    (c) Determination by agency designee. Where he has information 
concerning a potential appearance problem arising from the financial 
interest of a member of the employee's household in a particular matter 
involving specific parties, or from the role in such matter of a person 
with whom the employee has a covered relationship, the agency designee 
may make an independent determination as to whether a reasonable person 
with knowledge of the relevant

[[Page 637]]

facts would be likely to question the employee's impartiality in the 
matter. Ordinarily, the agency designee's determination will be 
initiated by information provided by the employee pursuant to paragraph 
(a) of this section. However, at any time, including after the employee 
has disqualified himself from participation in a matter pursuant to 
paragraph (e) of this section, the agency designee may make this 
determination on his own initiative or when requested by the employee's 
supervisor or any other person responsible for the employee's 
assignment.
    (1) If the agency designee determines that the employee's 
impartiality is likely to be questioned, he shall then determine, in 
accordance with paragraph (d) of this section, whether the employee 
should be authorized to participate in the matter. Where the agency 
designee determines that the employee's participation should not be 
authorized, the employee will be disqualified from participation in the 
matter in accordance with paragraph (e) of this section.
    (2) If the agency designee determines that the employee's 
impartiality is not likely to be questioned, he 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. Where an employee's 
participation in a particular matter involving specific parties would 
not violate 18 U.S.C. 208(a), but would raise a question in the mind of 
a reasonable person about his impartiality, the agency designee may 
authorize the employee to participate in the matter based on a 
determination, made in light of all relevant circumstances, that the 
interest of the Government in the employee's participation outweighs the 
concern that a reasonable person may question the integrity of the 
agency's programs and operations. Factors which may be taken into 
consideration include:
    (1) The nature of the relationship involved;
    (2) The effect that resolution of the matter would have upon the 
financial interests of the person involved in the relationship;
    (3) 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;
    (4) The sensitivity of the matter;
    (5) The difficulty of reassigning the matter to another employee; 
and
    (6) 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.
    Authorization by the agency designee shall 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 disqualify himself 
from participation in the matter on the basis of an appearance problem 
involving the same circumstances that have been considered by the agency 
designee.

    Example 1: The Deputy Director of Personnel for the Department of 
the Treasury and an attorney with the Department's Office of General 
Counsel are general partners in a real estate partnership. The Deputy 
Director advises his supervisor, the Director of Personnel, of the 
relationship upon being assigned to a selection panel for a position for 
which his partner has applied. If selected, the partner would receive a 
substantial increase in salary. The agency designee cannot authorize the 
Deputy Director to participate on the panel under the authority of this 
section since the Deputy Director is prohibited by criminal statute, 18 
U.S.C. 208(a), from participating in a particular matter affecting the 
financial interest of a person who is his general partner. See Sec.  
2635.402.
    Example 2: A new employee of the Securities and Exchange Commission 
is assigned to an investigation of insider trading by the brokerage 
house where she had recently been employed. Because of the sensitivity 
of the investigation, the agency designee may be unable to conclude that 
the Government's interest in the employee's participation in the 
investigation outweighs the concern that a reasonable person may 
question the integrity of the investigation, even though the employee 
has severed all financial ties with the company. Based on consideration 
of all relevant circumstances, the agency designee might determine, 
however, that it is in the interest of the Government for the employee 
to pass on a routine filing by the particular brokerage house.
    Example 3: An Internal Revenue Service employee involved in a long 
and complex tax

[[Page 638]]

audit is advised by her son that he has just accepted an entry-level 
management position with a corporation whose taxes are the subject of 
the audit. Because the audit is essentially complete and because the 
employee is the only one with an intimate knowledge of the case, the 
agency designee might determine, after considering all relevant 
circumstances, that it is in the Government's interest for the employee 
to complete the audit, which is subject to additional levels of review.

    (e) Disqualification. Unless the employee is authorized to 
participate in the matter under paragraph (d) of this section, an 
employee shall not participate in a particular matter involving specific 
parties when he or the agency designee has concluded, in accordance with 
paragraph (a) or (c) of this section, that the financial interest of a 
member of the employee's household, or the role of a person with whom he 
has a covered relationship, is likely to raise a question in the mind of 
a reasonable person about his impartiality. Disqualification is 
accomplished by not participating in the matter.
    (1) Notification. An employee who becomes aware of the need to 
disqualify himself from participation in a particular matter involving 
specific parties to which he has been assigned should notify the person 
responsible for his assignment. An employee who is responsible for his 
own assignment should take whatever steps are necessary to ensure that 
he does not participate in the matter from which he is disqualified. 
Appropriate oral or written notification of the employee's 
disqualification may be made to coworkers by the employee or a 
supervisor to ensure that the employee is not involved in a particular 
matter involving specific parties from which he is disqualified.
    (2) Documentation. An employee need not file a written 
disqualification statement unless he is required by part 2634 of this 
chapter to file written evidence of compliance with an ethics agreement 
with the Office of Government Ethics or is specifically asked by an 
agency ethics official or the person responsible for his assignment to 
file a written disqualification statement. However, an employee may 
elect to create a record of his actions by providing written notice to a 
supervisor or other appropriate official.
    (f) Relevant considerations. An employee's reputation for honesty 
and integrity is not a relevant consideration for purposes of any 
determination required by this section.



Sec.  2635.503  Extraordinary payments from former employers.

    (a) Disqualification requirement. Except as provided in paragraph 
(c) of this section, an employee shall be disqualified for two years 
from participating in any particular matter in which a former employer 
is a party or represents a party if he received an extraordinary payment 
from that person prior to entering Government service. The two-year 
period of disqualification begins to run on the date that the 
extraordinary payment is received.

    Example 1: Following his confirmation hearings and one month before 
his scheduled swearing in, a nominee to the position of Assistant 
Secretary of a department received an extraordinary payment from his 
employer. For one year and 11 months after his swearing in, the 
Assistant Secretary may not participate in any particular matter to 
which his former employer is a party.
    Example 2: An employee received an extraordinary payment from her 
former employer, a coal mine operator, prior to entering on duty with 
the Department of the Interior. For two years thereafter, she may not 
participate in a determination regarding her former employer's 
obligation to reclaim a particular mining site, because her former 
employer is a party to the matter. However, she may help to draft 
reclamation legislation affecting all coal mining operations because 
this legislation does not involve any parties.

    (b) Definitions. For purposes of this section, the following 
definitions shall apply:
    (1) Extraordinary payment means any item, including cash or an 
investment interest, with a value in excess of $10,000, which is paid:
    (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 the former employer's established 
compensation, partnership, or benefits program. A compensation, 
partnership, or

[[Page 639]]

benefits program will be deemed an established program if it is 
contained in bylaws, a contract or other written form, or if there is a 
history of similar payments made to others not entering into Federal 
service.

    Example 1: The vice president of a small corporation is nominated to 
be an ambassador. In recognition of his service to the corporation, the 
board of directors votes to pay him $50,000 upon his confirmation in 
addition to the regular severance payment provided for by the corporate 
bylaws. The regular severance payment is not an extraordinary payment. 
The gratuitous payment of $50,000 is an extraordinary payment, since the 
corporation had not made similar payments to other departing officers.

    (2) Former employer includes any person which the employee served as 
an officer, director, trustee, general partner, agent, attorney, 
consultant, contractor or employee.
    (c) Waiver of disqualification. The disqualification requirement of 
this section may be waived based on a finding that the amount of the 
payment was not so substantial as to cause a reasonable person to 
question the employee's ability to act impartially in a matter in which 
the former employer is or represents a party. The waiver shall be in 
writing and may be given only by the head of the agency or, where the 
recipient of the payment is the head of the agency, by the President or 
his designee. Waiver authority may be delegated by agency heads to any 
person who has been delegated authority to issue individual waivers 
under 18 U.S.C. 208(b) for the employee who is the recipient of the 
extraordinary payment.



                   Subpart F_Seeking Other Employment

    Source: 81 FR 48688, July 26, 2016, unless otherwise noted.



Sec.  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 Sec.  2635.402 and Sec.  
2640.103 of this chapter. Beyond this statutory requirement, 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 Stop Trading on Congressional Knowledge Act of 2012 (STOCK 
Act), Public Law 112-105, 126 Stat. 303, 5 U.S.C. app. 101 note, 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.



Sec.  2635.602  Applicability and related considerations.

    (a) Applicability. (1) To ensure that an employee does not violate 
18 U.S.C. 208(a), section 17 of the STOCK Act, or the principles of 
ethical conduct contained in Sec.  2635.101(b), an employee who is 
seeking employment or who has an arrangement concerning prospective 
employment must comply with the applicable recusal requirements of 
Sec. Sec.  2635.604 and 2635.606 if particular matters in which the 
employee will be participating personally and substantially would, to 
the employee's knowledge, directly and predictably affect the financial 
interests of a prospective employer or of a person with whom the 
employee has an arrangement concerning prospective employment. 
Compliance with this subpart also will ensure that the employee does not 
violate

[[Page 640]]

subpart D or E of this part. In addition, a public filer who negotiates 
for or has an agreement of future employment or compensation must comply 
with the requirements of Sec.  2635.607.
    (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 Sec.  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 Sec.  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): Recently, an employee of the Department 
of Education submitted her resume to the University of Delaware for a 
job opening that she heard about through a friend. The employee has 
begun seeking employment. However, because she is not participating in 
any particular matters affecting the University of Delaware, she is not 
required to notify anyone that she has begun seeking employment.
    Example 2 to paragraph (a): The employee in the preceding example 
has been approached about an employment opportunity at the University of 
Maryland. Because the University of Maryland has applied for grants on 
which she has been assigned to work in the past, she wants to make 
certain that she does not violate the ethics rules. The employee 
contacts her ethics official to discuss the matter. The employee informs 
the ethics official that she is not currently participating in any 
particular matters affecting the University of Maryland. As a result, 
the ethics official advises the employee that she will have no 
notification obligations under this subpart. However, the ethics 
official cautions the employee that, if the employee is assigned to 
participate in a particular matter affecting the University of Maryland 
while she is seeking employment with the University, she must take 
whatever steps are necessary to avoid working on the grant, in 
accordance with Sec.  2635.604.

    (b) Related restrictions--(1) Outside employment while a Federal 
employee. An employee who is contemplating outside employment to be 
undertaken concurrently with the employee's Federal employment must 
abide by any limitations applicable to the employee's outside activities 
under subparts G and H of this part, including any requirements under 
supplemental agency regulations to obtain prior approval before engaging 
in outside employment or activities and any prohibitions under 
supplemental agency regulations related to outside employment or 
activities. The employee must also comply with any applicable recusal 
requirement of this subpart, as well as any applicable recusal 
requirements under subpart D or E of this part as a result of the 
employee's outside employment activities.
    (2) Post-employment restrictions. An employee who is contemplating 
employment to be undertaken following the termination of the employee's 
Federal employment should consult an agency ethics official to obtain 
advice regarding any post-employment restrictions that may be 
applicable. The regulation implementing the Governmentwide post-
employment statute, 18 U.S.C. 207, is contained in part 2641 of this 
chapter. Employees are cautioned that they may be subject to additional 
statutory prohibitions on post-employment acceptance of compensation 
from contractors, such as 41 U.S.C. 2104.
    (3) Interview trips and entertainment. Where a prospective employer 
who is a prohibited source as defined in Sec.  2635.203(d) offers to 
reimburse an employee's travel expenses, or provide other reasonable 
amenities incident to employment discussions, the employee may accept 
such amenities in accordance with Sec.  2635.204(e)(3). Where a 
prospective employer is a foreign government or international 
organization, the employee must also ensure that he or she is in 
compliance with the Foreign Gifts and Decorations Act, 5 U.S.C. 7342.

[[Page 641]]



Sec.  2635.603  Definitions.

    For purposes of this subpart:
    (a) Employment means any form of non-Federal employment or business 
relationship involving the provision of personal services by the 
employee, whether to be undertaken at the same time as or subsequent to 
Federal employment. It includes but is not limited to personal services 
as an officer, director, employee, agent, attorney, consultant, 
contractor, general partner, or trustee.

    Example 1 to paragraph (a): An employee of the Bureau of Indian 
Affairs who has announced her intention to retire is approached by 
tribal representatives concerning a possible consulting contract with 
the tribe. The contractual relationship the tribe wishes to negotiate is 
employment for purposes of this subpart.
    Example 2 to paragraph (a): An employee of the Department of Health 
and Human Services is invited to a meeting with officials of a nonprofit 
corporation to discuss the possibility of his serving as a member of the 
corporation's board of directors. Service, with or without compensation, 
as a member of the board of directors constitutes employment for 
purposes of this subpart.
    Example 3 to paragraph (a): An employee at the Department of Energy 
volunteers without compensation to serve dinners at a homeless shelter 
each month. The employee's uncompensated volunteer services in this case 
are not considered an employment or business relationship for purposes 
of this subpart.

    (b) An employee is seeking employment once the employee has begun 
seeking employment within the meaning of paragraph (b)(1) of this 
section and until the employee is no longer seeking employment within 
the meaning of paragraph (b)(2) of this section.
    (1) An employee has begun seeking employment if the employee has 
directly or indirectly:
    (i) Engaged in negotiations for employment with any person. For 
these purposes, as for 18 U.S.C. 208(a) and section 17 of the STOCK Act, 
the term negotiations means discussion or communication with another 
person, or such person's agent or intermediary, mutually conducted with 
a view toward reaching an agreement regarding possible employment with 
that person. The term is not limited to discussions of specific terms 
and conditions of employment in a specific position;
    (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 definition, 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): A paralegal at the Department of the 
Army is in his third year of law school. During a discussion with his 
neighbor, who is a partner in a large law firm in the community, the 
neighbor invited him to visit her law firm. The paralegal took her up on 
the offer and met with an associate at the firm. The associate shared 
with the paralegal her experiences looking for a legal position, 
discussed what she does in her position at the law firm, and explained 
why she chose her current law firm. There was no discussion of possible 
employment with the firm. The Army paralegal is not seeking employment 
at this time. The purpose of the visit was informational only.
    Example 2 to paragraph (b): An employee of the Defense Contract 
Audit Agency (DCAA) is auditing the overhead accounts of an Army 
contractor. While at the contractor's headquarters, the head of the 
contractor's accounting division tells the employee that his division is 
thinking about hiring another accountant and asks whether the employee 
might be interested in leaving DCAA. The DCAA employee asks what kind of 
work would be involved. The DCAA employee has begun seeking employment 
because he made

[[Page 642]]

a response other than a rejection to the communication regarding 
possible employment with the Army contractor, although he has not yet 
begun negotiating for employment.
    Example 3 to paragraph (b): The DCAA employee and the head of the 
contractor's accounting division in the previous example have a meeting 
to discuss the duties of the position that the accounting division would 
like to fill and the DCAA employee's qualifications for the position. 
They also discuss ways the DCAA employee could remedy one of the missing 
qualifications, and the employee indicates a willingness to obtain the 
proper qualifications. They do not discuss salary. The employee has 
engaged in negotiations regarding possible employment with the 
contractor.
    Example 4 to paragraph (b): An employee at the Department of Energy 
(DOE) lists his job duties and employment experience in a profile on an 
online, business-oriented social networking service. The employee's 
profile is not targeted at a specific prospective employer. The employee 
has not begun seeking employment because the posting of a profile or 
resume is not an unsolicited communication with any prospective 
employer.
    Example 5 to paragraph (b): The DOE employee in the previous example 
was recently notified that a representative of a university has viewed 
his profile. The employee still has not begun seeking employment with 
the university. Subsequently, a representative of the university 
contacts the employee through the online forum to inquire whether the 
employee would be interested in working for the university, to which he 
makes a response other than rejection. At this point, the employee has 
begun seeking employment with the university until he rejects the 
possibility of employment and all discussions of possible employment 
have terminated.
    Example 6 to paragraph (b): The DOE employee in the previous two 
examples receives emails from various companies in response to his 
online profile. He does not respond. The employee has not begun seeking 
employment with the companies because he has not made a response.
    Example 7 to paragraph (b): An employee of the Centers for Medicare 
& Medicaid Services (CMS) is complimented on her work by an official of 
a State Health Department who asks her to call if she is ever interested 
in leaving Federal service. The employee explains to the State official 
that she is very happy with her job at CMS and is not interested in 
another job. She thanks him for his compliment regarding her work and 
adds that she'll remember his interest if she ever decides to leave the 
Government. The employee has rejected the unsolicited employment 
overture and has not begun seeking employment.
    Example 8 to paragraph (b): The employee in the preceding example 
responds by stating that she cannot discuss future employment while she 
is working on a project affecting the State's health care funding but 
would like to discuss employment with the State when the project is 
completed. Because the employee has merely deferred employment 
discussions until the foreseeable future, she has begun seeking 
employment with the State Health Department.
    Example 9 to paragraph (b): Three months prior to the end of the 
current administration, a political appointee at a large department 
receives a telephone call from the managing partner of an international 
law firm. The managing partner asks if the official would be interested 
in joining the law firm. The official says, ``I am not talking to anyone 
about employment until I leave the Government.'' The official has 
rejected the unsolicited employment overture and has not begun seeking 
employment.
    Example 10 to paragraph (b): A geologist employed by the U.S. 
Geological Survey sends her resume to an oil company. The geologist has 
begun seeking employment with that oil company and will be seeking 
employment for two months from the date the resume was mailed, provided 
she does not receive a response indicating an interest in employment 
discussions. A letter merely acknowledging receipt of the resume is not 
an indication of interest in employment discussions. However, if she 
withdraws her application or is notified within the two-month period 
that her resume has been rejected, she will no longer be seeking 
employment with the oil company as of the date she makes such withdrawal 
or receives such notification.

    (c) Prospective employer means any person with whom the employee is 
seeking employment. Where contacts that constitute seeking employment 
are made by or with an agent or other intermediary, the term prospective 
employer means:
    (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): An employee of the Federal Aviation 
Administration (FAA) has retained an employment search firm to help her 
find another job. The search firm has just reported to the FAA employee 
that it has given her resume to and had promising

[[Page 643]]

discussions with two airport authorities, which the search firm 
identifies to the employee. Even though the employee has not personally 
had employment discussions with either airport authority, each airport 
authority is her prospective employer. She began seeking employment with 
each airport authority upon learning its identity and that it has been 
given her resume.
    Example 2 to paragraph (c): An employee pays for an online resume 
distribution service, which sends her resume to recruiters that 
specialize in her field. The online service has just notified her that 
it sent her resume to Software Company A and Software Company B. Even 
though the employee has not personally had employment discussions with 
either company, each software company is her prospective employer. She 
began seeking employment with each company upon learning from the online 
service that Software Company A and Software Company B had been given 
her resume by the intermediary.

    (d) Direct and predictable effect, particular matter, and personal 
and substantial have the respective meanings set forth in Sec.  
2635.402(b)(1), (3), and (4).
    (e) Public filer means a person required to file a public financial 
disclosure report as set forth in Sec.  2634.202 of this chapter.



Sec.  2635.604  Recusal while seeking employment.

    (a) Obligation to recuse. (1) Except as provided in paragraph (a)(2) 
of this section or where the employee's participation has been 
authorized in accordance with Sec.  2635.605, the employee may not 
participate personally and substantially in a particular matter that, to 
the employee's knowledge, has a direct and predictable effect on the 
financial interests of a prospective employer with whom the employee is 
seeking employment within the meaning of Sec.  2635.603(b). Recusal is 
accomplished by not participating in the particular matter.
    (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): A scientist is employed by the National 
Science Foundation (NSF) as a special Government employee to serve on a 
panel that reviews grant applications to fund research relating to 
deterioration of the ozone layer. She is discussing possible employment 
with a university that received an NSF grant several years ago to study 
the effect of fluorocarbons but has no current grant applications 
pending before NSF. The employee is seeking employment, but she does not 
need to recuse because there is no particular matter that would have a 
direct and predictable effect on the financial interests of the 
prospective employer. Recusal would be required if the university 
submits a new application for the panel's review.
    Example 2 to paragraph (a): An employee of the Food and Drug 
Administration is developing a regulation on research criteria for 
approving prescription drugs. She begins discussing possible employment 
with a pharmaceutical company. The employee may not participate 
personally and substantially in the development of the regulation 
because she has begun employment discussions with the pharmaceutical 
company and the regulation is a particular matter of general 
applicability which would have a direct and predictable effect on the 
financial interests of the pharmaceutical company.
    Example 3 to paragraph (a): A special Government employee of the 
Federal Deposit Insurance Corporation (FDIC) is assigned to advise the 
FDIC on rules applicable to all member banks. She mails an unsolicited 
letter to a member bank offering her services as a contract consultant. 
Although the employee is seeking employment, the employee may 
participate in this particular matter of general applicability until she 
receives some response indicating an interest in discussing her 
employment proposal. A letter merely acknowledging receipt of the 
proposal is not an indication of interest in employment discussions.
    Example 4 to paragraph (a): An employee of the Occupational Safety 
and Health Administration is conducting an inspection of one of several 
textile companies to which he sent an unsolicited resume. The employee 
may not participate personally and substantially in the inspection 
because he is seeking employment and the inspection is a particular 
matter involving specific parties that will affect the textile company.

    (b) Notification. An employee who becomes aware of the need to 
recuse from participation in a particular matter to

[[Page 644]]

which the employee has been assigned must take whatever steps are 
necessary to ensure that the employee does not participate in the 
matter. Appropriate oral or written notification of the employee's 
recusal may be made to an agency ethics official, coworkers, or a 
supervisor to document and help effectuate the employee's recusal. 
Public filers must comply with additional notification requirements set 
forth in Sec.  2635.607.

    Example 1 to paragraph (b): An employee of the Department of 
Veterans Affairs (VA) is participating in the audit of a contract for 
laboratory support services. Before sending his resume to a lab which is 
a subcontractor under the VA contract, the employee should recuse from 
participation in the audit. Since he cannot withdraw from participation 
in the contract audit without the approval of his supervisor, he should 
notify his supervisor of his need to recuse for ethics reasons so that 
appropriate adjustments in his work assignments can be made.
    Example 2 to paragraph (b): An employee of the Food and Drug 
Administration (FDA) is contacted in writing by a pharmaceutical company 
concerning possible employment with the company. The employee is 
reviewing an application from the same pharmaceutical company, which is 
seeking FDA approval for a new drug product. Once the employee makes a 
response that is not a rejection to the company's communication 
concerning possible employment, the employee must recuse from further 
participation in the review of the application. Where he has authority 
to ask his colleague to assume his reviewing responsibilities, he may 
accomplish his recusal by transferring the work to the employee 
designated to cover for him. However, to ensure that his colleague and 
others with whom he had been working on the review do not seek his 
advice regarding the review of the application or otherwise involve him 
in the matter, it may be necessary for him to advise those individuals 
of his recusal.

    (c) Documentation. An employee, other than a public filer, need not 
file a written recusal statement unless the employee is required by part 
2634 of this chapter to file written evidence of compliance with an 
ethics agreement with the Office of Government Ethics or a designated 
agency ethics official, or is specifically directed by an agency ethics 
official or the person responsible for the employee's assignment to file 
a written recusal statement. However, it is often prudent for an 
employee to create a record of his or her actions by providing written 
notice to an agency ethics official, a supervisor, or other appropriate 
official. Public filers must comply with the documentation requirements 
set forth in Sec.  2635.607.

    Example 1 to paragraph (c): The General Counsel of a regulatory 
agency will be engaging in discussions regarding possible employment as 
corporate counsel of a regulated entity. Matters directly affecting the 
financial interests of the regulated entity are pending within the 
Office of General Counsel, but the General Counsel will not be called 
upon to act in any such matter because signature authority for that 
particular class of matters has been delegated to an Assistant General 
Counsel. Because the General Counsel is responsible for assigning work 
within the Office of General Counsel, he can, in fact, accomplish his 
recusal by simply avoiding any involvement in matters affecting the 
regulated entity. However, because it is likely to be assumed by others 
that the General Counsel is involved in all matters within the 
cognizance of the Office of General Counsel, he would benefit from 
filing a written recusal statement with an agency ethics official or the 
Commissioners of the regulatory agency and providing his subordinates 
with written notification of his recusal. He may also be specifically 
directed by an agency ethics official or the Commissioners to file a 
written recusal statement. If the General Counsel is a public filer, he 
must comply with the documentation requirements set forth in Sec.  
2635.607.

    (d) Agency determination of substantial conflict. Where the agency 
determines that the employee's action in seeking employment with a 
particular person will require the employee's recusal from matters so 
central or critical to the performance of the employee's official duties 
that the employee's ability to perform the duties of the employee's 
position would be materially impaired, the agency may allow the employee 
to take annual leave or leave without pay while seeking employment, or 
may take other appropriate action.



Sec.  2635.605  Waiver or authorization permitting participation 
while seeking employment.

    (a) Waiver. Where, as defined in Sec.  2635.603(b)(1)(i), an 
employee is engaged in employment negotiations for purposes of 18 U.S.C. 
208(a), the employee may not participate personally and substantially in 
a particular matter that, to the employee's knowledge,

[[Page 645]]

has a direct and predictable effect on the financial interests of a 
prospective employer. The employee may participate in such matters only 
where the employee has received a written waiver issued under the 
authority of 18 U.S.C. 208(b)(1) or (3). These waivers are described in 
Sec.  2635.402(d) and part 2640, subpart C of this chapter. For certain 
employees, a regulatory exemption under the authority of 18 U.S.C. 
208(b)(2) may also apply (see part 2640, subpart B of this chapter), 
including Sec.  2640.203(g) and (i).

    Example 1 to paragraph (a): An employee of the Department of 
Agriculture is negotiating for employment within the meaning of 18 
U.S.C. 208(a) and Sec.  2635.603(b)(1)(i) with an orange grower. In the 
absence of a written waiver issued under 18 U.S.C. 208(b)(1), she may 
not take official action on a complaint filed by a competitor alleging 
that the grower has shipped oranges in violation of applicable quotas.
    (b) Authorization by agency designee. Where an employee is seeking 
employment within the meaning of Sec.  2635.603(b)(1)(ii) or (iii) and 
is not negotiating for employment, a reasonable person would be likely 
to question the employee's impartiality if the employee were to 
participate personally and substantially in a particular matter that, to 
the employee's knowledge, has a direct and predictable effect on the 
financial interests of any such prospective employer. The employee may 
participate in such matters only where the agency designee has 
authorized in writing the employee's participation in accordance with 
the standards set forth in Sec.  2635.502(d).

    Example 1 to paragraph (b): Within the past month, an employee of 
the Department of Education mailed her resume to a university. She is 
thus seeking employment with the university within the meaning of Sec.  
2635.603(b)(1)(ii). In the absence of specific authorization by the 
agency designee in accordance with Sec.  2635.502(d), she may not 
participate personally and substantially in an assignment to review a 
grant application submitted by the university.



Sec.  2635.606  Recusal based on an arrangement concerning 
prospective employment or otherwise after negotiations.

    (a) Employment or arrangement concerning employment. An employee may 
not participate personally and substantially in a particular matter 
that, to the employee's knowledge, has a direct and predictable effect 
on the financial interests of the person by whom he or she is employed 
or with whom he or she has an arrangement concerning future employment, 
unless authorized to participate in the matter by a written waiver 
issued under the authority of 18 U.S.C. 208(b)(1) or (3), or by a 
regulatory exemption under the authority of 18 U.S.C. 208(b)(2). These 
waivers and exemptions are described in Sec.  2635.402(d) and part 2640, 
subparts B and C of this chapter.

    Example 1 to paragraph (a): A military officer has accepted a job 
with a defense contractor that will begin six months after his 
retirement from military service. During the period that he remains with 
the Government, the officer may not participate personally and 
substantially in the administration of a contract with that particular 
defense contractor unless he has received a written waiver under the 
authority of 18 U.S.C. 208(b)(1).
    Example 2 to paragraph (a): An accountant has just been offered a 
job with the Office of the Comptroller of the Currency (OCC) which 
involves a two-year limited appointment. Her private employer, a large 
corporation, believes the job will enhance her skills and has agreed to 
give her a two-year unpaid leave of absence at the end of which she has 
agreed to return to work for the corporation. During the two-year period 
that she is to be an OCC employee, the accountant will have an 
arrangement concerning future employment with the corporation that will 
require her recusal from participation personally and substantially in 
any particular matter that, to her knowledge, will have a direct and 
predictable effect on the corporation's financial interests.

    (b) Offer rejected or not made. The agency designee for the purpose 
of Sec.  2635.502(c) may, in an appropriate case, determine that an 
employee not covered by the preceding paragraph who has sought but is no 
longer seeking employment nevertheless will be subject to a period of 
recusal upon the conclusion of employment negotiations. Any such 
determination will be based on a consideration of all the relevant 
factors, including those listed in Sec.  2635.502(d), and a 
determination that the concern that a reasonable person may question the 
integrity of the agency's decision-making process outweighs the 
Government's interest in the employee's participation in the particular 
matter.
    Example 1 to paragraph (b): An employee of the Securities and 
Exchange Commission

[[Page 646]]

was relieved of responsibility for an investigation of a broker-dealer 
while seeking employment with the law firm representing the broker-
dealer in that matter. The firm did not offer her the partnership 
position she sought. Even though she is no longer seeking employment 
with the firm, she may continue to be recused from participating in the 
investigation based on a determination by the agency designee that the 
concern that a reasonable person might question whether, in view of the 
history of the employment negotiations, she could act impartially in the 
matter outweighs the Government's interest in her participation.



Sec.  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. A public filer who is negotiating for or has 
an agreement of future employment or compensation with a non-Federal 
entity must file a statement notifying an agency ethics official of such 
negotiation or agreement within three business days after commencement 
of the negotiation or agreement. This notification statement must be in 
writing, must be signed by the public filer, and must include the name 
of the non-Federal entity involved in such negotiation or agreement and 
the date on which the negotiation or agreement commenced. When a public 
filer has previously complied with the notification requirement in this 
section regarding the commencement of negotiations, the filer need not 
file a separate notification statement when an agreement of future 
employment or compensation is reached with the previously identified 
non-Federal entity. There is also no requirement to file another 
notification when negotiations have been unsuccessful. However, 
employees may want to do so to facilitate the resumption of their 
duties.

    Example 1 to paragraph (a): An employee of the Merit Systems 
Protection Board who is a public filer was in private practice prior to 
his Government service. He receives a telephone call from a partner in a 
law firm who inquires as to whether he would be interested in returning 
to private practice. During this initial telephone call with the law 
firm partner, the employee indicates that he is interested in resuming 
private practice. They discuss generally the types of issues that would 
need to be agreed upon if the employee were to consider a possible offer 
to serve as ``of counsel'' with the firm, such as salary, benefits, and 
type of work the employee would perform. The employee has begun 
negotiating for future employment with the law firm. Within three 
business days after this initial telephone call, he must file written 
notification of the negotiations with his agency ethics official.
    Example 2 to paragraph (a): The employee in the previous example 
also negotiates a possible contract with a publisher to begin writing a 
textbook after he leaves Government service. Within three business days 
after commencing negotiations, the employee must file written 
notification with his agency ethics official documenting that he is 
engaged in negotiations for future compensation with the book publisher.

    (b) Notification of recusal. A public filer who files a notification 
statement pursuant to paragraph (a) of this section must file with an 
agency ethics official a notification of recusal whenever there is a 
conflict of interest or appearance of a conflict of interest with the 
non-Federal entity identified in the notification statement. The 
notification statement and the recusal statement may be contained in a 
single document or in separate documents.
    (c) Advance filing of notification and recusal statements. When a 
public filer is seeking employment within the meaning of Sec.  
2635.603(b)(1)(ii) or (iii) or is considering seeking employment, the 
public filer may elect to file the notification statement pursuant to 
paragraph (a) of this section before negotiations have commenced and 
before an agreement of future employment or compensation is reached. A 
public filer may also elect to file the recusal statement pursuant to 
paragraph (b) of this section before the public filer has a conflict of 
interest or appearance of a conflict of interest with the non-Federal 
entity identified in the notification statement. The public filer need 
not file the document again upon commencing negotiations or reaching an 
agreement of future employment or compensation. The advance filing of 
any such document is not construed as a statement that negotiations have 
or have not commenced or that a conflict of interest does or does not 
exist. Although the Office of Government Ethics encourages advance 
filing when a

[[Page 647]]

public filer anticipates a realistic possibility of negotiations or an 
agreement, the failure to make an advance filing does not violate this 
subpart or the principles of ethical conduct contained in Sec.  
2635.101(b).

    Example 1 to paragraph (c): An employee of the Federal Labor 
Relations Authority who is a public filer began negotiating for future 
employment with a law firm. At the time he began negotiating for future 
employment with the law firm, he was not participating personally and 
substantially in a particular matter that, to his knowledge, had a 
direct and predictable effect on the financial interest of the law firm. 
Although the employee was not required to file a recusal statement 
because he did not have a conflict of interest or appearance of a 
conflict of interest with the law firm identified in the notification 
statement, the Office of Government Ethics encourages the employee to 
submit a notification of recusal at the same time that he files the 
notification statement regarding the negotiations for future employment 
in order to ensure that the requirement of paragraph (b) of this section 
is satisfied if a conflict of interest or an appearance of a conflict of 
interest later arises. The agency ethics official should counsel the 
employee on applicable requirements but is under no obligation to notify 
the employee's supervisor that the employee is negotiating for 
employment.
    Example 2 to paragraph (c): An employee of the General Services 
Administration is contacted by a prospective employer regarding 
scheduling an interview for the following week to begin discussing the 
possibility of future employment. The employee discusses the matter with 
the ethics official and chooses to file a notification and recusal 
statement prior to the interview. The notification and recusal statement 
contain the identity of the prospective employer and an estimated date 
of when the interview will occur. The employee has complied with the 
notification requirement of section 17 of the STOCK Act.

    (d) Agreement of future employment or compensation for the purposes 
of Sec.  2635.607 means any arrangement concerning employment that will 
commence after the termination of Government service. The term also 
means any arrangement to compensate in exchange for services that will 
commence after the termination of Government service. The term includes, 
among other things, an arrangement to compensate for teaching, speaking, 
or writing that will commence after the termination of Government 
service.



                      Subpart G_Misuse of Position



Sec.  2635.701  Overview.

    This subpart contains provisions relating to the proper use of 
official time and authority, and of information and resources to which 
an employee has access because of his 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.



Sec.  2635.702  Use of public office for private gain.

    An employee shall not use his public office for his own private 
gain, for the endorsement of any product, service or enterprise, 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. An employee shall not use or 
permit the use of his Government position or title or any authority 
associated with his public office in a manner that is intended to coerce 
or induce another person, including a subordinate, to provide any 
benefit, financial or otherwise, to himself or to friends, relatives, or 
persons with whom the employee is affiliated in a nongovernmental 
capacity.

    Example 1: Offering to pursue a relative's consumer complaint over a 
household appliance, an employee of the Securities and Exchange 
Commission called the general counsel of the manufacturer and, in the 
course of discussing the problem, stated that he worked at the SEC and 
was responsible for reviewing the company's filings. The employee 
violated the prohibition against use of public office for private gain 
by invoking his official authority in an attempt to influence action to 
benefit his relative.

[[Page 648]]

    Example 2: An employee of the Department of Commerce was asked by a 
friend to determine why his firm's export license had not yet been 
granted by another office within the Department of Commerce. At a 
department-level staff meeting, the employee raised as a matter for 
official inquiry the delay in approval of the particular license and 
asked that the particular license be expedited. The official used her 
public office in an attempt to benefit her friend and, in acting as her 
friend's agent for the purpose of pursuing the export license with the 
Department of Commerce, may also have violated 18 U.S.C. 205.

    (b) Appearance of governmental sanction. Except as otherwise 
provided in this part, an employee shall not use or permit the use of 
his Government position or title or any authority associated with his 
public office in a manner that could reasonably be construed to imply 
that his agency or the Government sanctions or endorses his personal 
activities or those of another. When teaching, speaking, or writing in a 
personal capacity, he may refer to his official title or position only 
as permitted by Sec.  2635.807(b). He may sign a letter of 
recommendation using his official title only in response to a request 
for an employment recommendation or character reference based upon 
personal knowledge of the ability or character of an individual with 
whom he has dealt in the course of Federal employment or whom he is 
recommending for Federal employment.

    Example 1: An employee of the Department of the Treasury who is 
asked to provide a letter of recommendation for a former subordinate on 
his staff may provide the recommendation using official stationery and 
may sign the letter using his official title. If, however, the request 
is for the recommendation of a personal friend with whom he has not 
dealt in the Government, the employee should not use official stationery 
or sign the letter of recommendation using his official title, unless 
the recommendation is for Federal employment. In writing the letter of 
recommendation for his personal friend, it may be appropriate for the 
employee to refer to his official position in the body of the letter.

    (c) Endorsements. An employee shall not use or permit the use of his 
Government position or title or any authority associated with his public 
office to endorse any product, service or enterprise except:
    (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: A Commissioner of the Consumer Product Safety Commission 
may not appear in a television commercial in which she endorses an 
electrical appliance produced by her former employer, stating that it 
has been found by the CPSC to be safe for residential use.
    Example 2: A Foreign Commercial Service officer from the Department 
of Commerce is asked by a United States telecommunications company to 
meet with representatives of the Government of Spain, which is in the 
process of procuring telecommunications services and equipment. The 
company is bidding against five European companies and the statutory 
mission of the Department of Commerce includes assisting the export 
activities of U.S. companies. As part of his official duties, the 
Foreign Commercial Service officer may meet with Spanish officials and 
explain the advantages of procurement from the United States company.
    Example 3: The Administrator of the Environmental Protection Agency 
may sign a letter to an oil company indicating that its refining 
operations are in compliance with Federal air quality standards even 
though he knows that the company has routinely displayed letters of this 
type in television commercials portraying it as a ``trustee of the 
environment for future generations.''
    Example 4: An Assistant Attorney General may not use his official 
title or refer to his Government position in a book jacket endorsement 
of a novel about organized crime written by an author whose work he 
admires. Nor may he do so in a book review published in a newspaper.

    (d) Performance of official duties affecting a private interest. To 
ensure that the performance of his official duties does not give rise to 
an appearance of use of public office for private gain or of giving 
preferential treatment, an employee whose duties would affect the 
financial interests of a friend, relative or person with whom he is 
affiliated in a nongovernmental capacity shall comply with any 
applicable requirements of Sec.  2635.502.
    (e) Use of terms of address and ranks. Nothing in this section 
prohibits an

[[Page 649]]

employee who is ordinarily addressed using a general term of address, 
such as ``The Honorable'', or a rank, such as a military or 
ambassadorial rank, from using that term of address or rank in 
connection with a personal activity.



Sec.  2635.703  Use of nonpublic information.

    (a) Prohibition. An employee shall not engage in a financial 
transaction using nonpublic information, nor allow the improper use of 
nonpublic information to further his own private interest or that of 
another, whether through advice or recommendation, or by knowing 
unauthorized disclosure.
    (b) Definition of nonpublic information. For purposes of this 
section, nonpublic information is information that the employee gains by 
reason of Federal employment and that he knows or reasonably should know 
has not been made available to the general public. It includes 
information that he knows or reasonably should know:
    (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: A Navy employee learns in the course of her duties that a 
small corporation will be awarded a Navy contract for electrical test 
equipment. She may not take any action to purchase stock in the 
corporation or its suppliers and she may not advise friends or relatives 
to do so until after public announcement of the award. Such actions 
could violate Federal securities statutes as well as this section.
    Example 2: A General Services Administration employee involved in 
evaluating proposals for a construction contract cannot disclose the 
terms of a competing proposal to a friend employed by a company bidding 
on the work. Prior to award of the contract, bid or proposal information 
is nonpublic information specifically protected by 41 U.S.C. 423.
    Example 3: An employee is a member of a source selection team 
assigned to review the proposals submitted by several companies in 
response to an Army solicitation for spare parts. As a member of the 
evaluation team, the employee has access to proprietary information 
regarding the production methods of Alpha Corporation, one of the 
competitors. He may not use that information to assist Beta Company in 
drafting a proposal to compete for a Navy spare parts contract. The 
Federal Acquisition Regulation in 48 CFR parts 3, 14 and 15 restricts 
the release of information related to procurements and other contractor 
information that must be protected under 18 U.S.C. 1905 and 41 U.S.C. 
423.
    Example 4: An employee of the Nuclear Regulatory Commission 
inadvertently includes a document that is exempt from disclosure with a 
group of documents released in response to a Freedom of Information Act 
request. Regardless of whether the document is used improperly, the 
employee's disclosure does not violate this section because it was not a 
knowing unauthorized disclosure made for the purpose of furthering a 
private interest.
    Example 5: An employee of the Army Corps of Engineers is actively 
involved in the activities of an organization whose goals relate to 
protection of the environment. The employee may not, other than as 
permitted by agency procedures, give the organization or a newspaper 
reporter nonpublic information about long-range plans to build a 
particular dam.



Sec.  2635.704  Use of Government property.

    (a) Standard. An employee has a duty to protect and conserve 
Government property and shall not use such property, or allow its use, 
for other than authorized purposes.
    (b) Definitions. For purposes of this section:
    (1) Government property includes any form of real or personal 
property in which the Government has an ownership, leasehold, or other 
property interest as well as any right or other intangible interest that 
is purchased with Government funds, including the services of contractor 
personnel. The term includes office supplies, telephone and other 
telecommunications equipment and services, the Government mails, 
automated data processing capabilities, printing and reproduction 
facilities, Government records, and Government vehicles.
    (2) Authorized purposes are those purposes for which Government 
property is made available to members of the public or those purposes 
authorized in accordance with law or regulation.

    Example 1: Under regulations of the General Services Administration 
at 41 CFR 101-35.201, an employee may make a personal

[[Page 650]]

long distance call charged to her personal calling card.
    Example 2: An employee of the Commodity Futures Trading Commission 
whose office computer gives him access to a commercial service providing 
information for investors may not use that service for personal 
investment research.
    Example 3: In accordance with Office of Personnel Management 
regulations at part 251 of this title, an attorney employed by the 
Department of Justice may be permitted to use her office word processor 
and agency photocopy equipment to prepare a paper to be presented at a 
conference sponsored by a professional association of which she is a 
member.

[57 FR 35042, Aug. 7, 1992, as amended at 62 FR 48748, Sept. 17, 1997]



Sec.  2635.705  Use of official time.

    (a) Use of an employee's own time. Unless authorized in accordance 
with law or regulations to use such time for other purposes, an employee 
shall use official time in an honest effort to perform official duties. 
An employee not under a leave system, including a Presidential appointee 
exempted under 5 U.S.C. 6301(2), has an obligation to expend an honest 
effort and a reasonable proportion of his time in the performance of 
official duties.

    Example 1: An employee of the Social Security Administration may use 
official time to engage in certain representational activities on behalf 
of the employee union of which she is a member. Under 5 U.S.C. 7131, 
this is a proper use of her official time even though it does not 
involve performance of her assigned duties as a disability claims 
examiner.
    Example 2: A pharmacist employed by the Department of Veterans 
Affairs has been granted excused absence to participate as a speaker in 
a conference on drug abuse sponsored by the professional association to 
which he belongs. Although excused absence granted by an agency in 
accordance with guidance in chapter 630 of the Federal Personnel Manual 
allows an employee to be absent from his official duties without charge 
to his annual leave account, such absence is not on official time.

    (b) Use of a subordinate's time. An employee shall not encourage, 
direct, coerce, or request a subordinate to use official time to perform 
activities other than those required in the performance of official 
duties or authorized in accordance with law or regulation.

    Example 1: An employee of the Department of Housing and Urban 
Development may not ask his secretary to type his personal 
correspondence during duty hours. Further, directing or coercing a 
subordinate to perform such activities during nonduty hours constitutes 
an improper use of public office for private gain in violation of Sec.  
2635.702(a). Where the arrangement is entirely voluntary and appropriate 
compensation is paid, the secretary may type the correspondence at home 
on her own time. Where the compensation is not adequate, however, the 
arrangement would involve a gift to the superior in violation of the 
standards in subpart C of this part.



                      Subpart H_Outside Activities



Sec.  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 these provisions apply to 
uncompensated as well as to compensated outside activities.
    (b) An employee who wishes 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 participation in professional organizations;
    (6) The limitations on paid and unpaid teaching, speaking, and 
writing; and
    (7) 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 shall endeavor to avoid actions creating an 
appearance of violating any of the ethical standards in

[[Page 651]]

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 
he has employment or business relations or is otherwise affiliated in a 
nongovernmental capacity.
    (d) In addition to the provisions of this 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 his 
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 employee from seeking, 
accepting, or agreeing to receive or accept compensation for any 
representational services, rendered personally or by another, 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 limitations on outside employment, 5 U.S.C. App. (Ethics in 
Government Act of 1978), which prohibit a covered noncareer employee's 
receipt of compensation for specified activities and provide that he 
shall not allow his name to be used by any firm or other entity which 
provides professional services involving a fiduciary relationship. 
Implementing regulations are contained in Sec. Sec.  2636.305 through 
2636.307 of this chapter.

[57 FR 35041, Aug. 7, 1992; 57 FR 48557, Oct. 27, 1992; 61 FR 50691, 
Sept. 27, 1996; 62 FR 48748, Sept. 17, 1997]



Sec.  2635.802  Conflicting outside employment and activities.

    An employee shall not engage in outside employment or any other 
outside activity that conflicts with his official duties. An activity 
conflicts with an employee's official duties:
    (a) If it is prohibited by statute or by an agency supplemental 
regulation; or

[[Page 652]]

    (b) If, under the standards set forth in Sec. Sec.  2635.402 and 
2635.502, it would require the employee's disqualification from matters 
so central or critical to the performance of his official duties that 
the employee's ability to perform the duties of his position would be 
materially impaired.
    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 disqualify 
himself from participation in certain particular matters under either 
subpart D or subpart E of this part.

    Example 1: An employee of the Environmental Protection Agency has 
just been promoted. His principal duty in his new position is to write 
regulations relating to the disposal of hazardous waste. The employee 
may not continue to serve as president of a nonprofit environmental 
organization that routinely submits comments on such regulations. His 
service as an officer would require his disqualification from duties 
critical to the performance of his official duties on a basis so 
frequent as to materially impair his ability to perform the duties of 
his position.
    Example 2: An employee of the Occupational Safety and Health 
Administration who was and is expected again to be instrumental in 
formulating new OSHA safety standards applicable to manufacturers that 
use chemical solvents has been offered a consulting contract to provide 
advice to an affected company in restructuring its manufacturing 
operations to comply with the OSHA standards. The employee should not 
enter into the consulting arrangement even though he is not currently 
working on OSHA standards affecting this industry and his consulting 
contract can be expected to be completed before he again works on such 
standards. Even though the consulting arrangement would not be a 
conflicting activity within the meaning of Sec.  2635.802, it would 
create an appearance that the employee had used his official position to 
obtain the compensated outside business opportunity and it would create 
the further appearance of using his public office for the private gain 
of the manufacturer.



Sec.  2635.803  Prior approval for outside employment and activities.

    When required by agency supplemental regulation issued after 
February 3, 1993, an employee shall obtain prior approval before 
engaging in outside employment or activities. Where it is determined to 
be necessary or desirable for the purpose of administering its ethics 
program, an agency shall, 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.

[57 FR 35042, Aug. 7, 1992, as amended at 59 FR 4780, Feb. 2, 1994; 60 
FR 6391, Feb. 2, 1995; 60 FR 66858, Dec. 27, 1995; 61 FR 40951, Aug. 7, 
1996; 62 FR 48748, Sept. 17, 1997]



Sec.  2635.804  Outside earned income limitations applicable to certain 
Presidential appointees and other noncareer employees.

    (a) Presidential appointees to full-time noncareer positions. A 
Presidential appointee to a full-time noncareer position shall not 
receive any outside earned income for outside employment, or for any 
other outside activity, performed during that Presidential appointment. 
This limitation does not apply to any outside earned income received for 
outside employment, or for any other outside activity, carried out in 
satisfaction of the employee's obligation under a contract entered into 
prior to April 12, 1989.
    (b) Covered noncareer employees. Covered noncareer employees, as 
defined in Sec.  2636.303(a) of this chapter, may not, in any calendar 
year, receive outside earned income attributable to that calendar year 
which exceeds 15 percent of the annual rate of basic pay for level II of 
the Executive Schedule under 5 U.S.C. 5313, as in effect on January 1 of 
such calendar year. Employees should consult the regulations 
implementing this limitation, which are contained in Sec. Sec.  2636.301 
through 2636.304 of this chapter.

    Note: In addition to the 15 percent limitation on outside earned 
income, covered noncareer employees are prohibited from receiving any 
compensation for: practicing a profession which involves a fiduciary 
relationship; affiliating with or being employed by a firm or other 
entity which provides professional services involving a fiduciary 
relationship; serving as an officer or member of the board of any 
association, corporation or other entity; or teaching without prior 
approval. Implementing regulations are contained in Sec. Sec.  2636.305 
through 2636.307 of this chapter.

    (c) Definitions. For purposes of this section:

[[Page 653]]

    (1) Outside earned income has the meaning set forth in Sec.  
2636.303(b) of this chapter, except that Sec.  2636.303(b)(7) shall not 
apply.
    (2) Presidential appointee to a full-time noncareer position means 
any employee who is appointed by the President to a full-time position 
described in 5 U.S.C. 5312 through 5317 or to a position that, by 
statute or as a matter of practice, is filled by Presidential 
appointment, other than:
    (i) A position filled under the authority of 3 U.S.C. 105 or 3 
U.S.C. 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: A career Department of Justice employee who is detailed 
to a policy-making position in the White House Office that is ordinarily 
filled by a noncareer employee is not a Presidential appointee to a 
full-time noncareer position.
    Example 2: A Department of Energy employee appointed under Sec.  
213.3301 of this title to a Schedule C position is appointed by the 
agency and, thus, is not a Presidential appointee to a full-time 
noncareer position.

[57 FR 35042, Aug. 7, 1992, as amended at 72 FR 16987, Apr. 6, 2007]



Sec.  2635.805  Service as an expert witness.

    (a) Restriction. An employee shall not serve, other than on behalf 
of the United States, as an expert witness, with or without 
compensation, in any proceeding before a court or agency of the United 
States in which the United States is a party or has a direct and 
substantial interest, unless the employee's participation is authorized 
by the agency under paragraph (c) of this section. Except as provided in 
paragraph (b) of this section, this restriction shall apply to a special 
Government employee only if he has participated as an employee or 
special Government employee in the particular proceeding or in the 
particular matter that is the subject of the proceeding.
    (b) Additional restriction applicable to certain special Government 
employees. (1) In addition to the restriction described in paragraph (a) 
of this section, a special Government employee described in paragraph 
(b)(2) of this section shall not serve, other than on behalf of the 
United States, as an expert witness, with or without compensation, in 
any proceeding before a court or agency of the United States in which 
his employing agency is a party or has a direct and substantial 
interest, unless the employee's participation is authorized by the 
agency under paragraph (c) of this section.
    (2) The restriction in paragraph (b)(1) of this section shall apply 
to a special Government employee who:
    (i) Is appointed by the President;
    (ii) Serves on a commission established by statute; or
    (iii) Has served or is expected to serve for more than 60 days in a 
period of 365 consecutive days.
    (c) Authorization to serve as an expert witness. Provided that the 
employee's testimony will not violate any of the principles or standards 
set forth in this part, authorization to provide expert witness service 
otherwise prohibited by paragraphs (a) and (b) of this section may be 
given by the designated agency ethics official of the agency in which 
the employee serves when:
    (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 Sec.  2635.807(a)(2)(i).
    (d) Nothing in this section prohibits an employee from serving as a 
fact witness when subpoenaed by an appropriate authority.

[57 FR 35042, Aug. 7, 1992, as amended at 62 FR 48748, Sept. 17, 1997]

[[Page 654]]



Sec.  2635.806  Participation in professional associations. [Reserved]



Sec.  2635.807  Teaching, speaking and writing.

    (a) Compensation for teaching, speaking or writing. Except as 
permitted by paragraph (a)(3) of this section, an employee, including a 
special Government employee, shall not receive compensation from any 
source other than the Government for teaching, speaking or writing that 
relates to the employee's official duties.
    (1) Relationship to other limitations on receipt of compensation. 
The compensation prohibition contained in this section is in addition to 
any other limitation on receipt of compensation set forth in this 
chapter, including:
    (i) The requirement contained in Sec.  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 Sec.  2635.804 and in Sec.  
2636.304 of this chapter on receipt of outside earned income applicable 
to certain Presidential appointees and to other covered noncareer 
employees.
    (2) Definitions. For purposes of this paragraph:
    (i) Teaching, speaking or writing relates to the employee's official 
duties if:
    (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 his official 
position rather than his 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 Sec.  2635.703(b); or
    (E) Except as provided in paragraph (a)(2)(i)(E)(4) of this section, 
the subject of the activity deals in significant part with:
    (1) Any matter to which the employee presently is assigned or to 
which the employee had been assigned during the previous one-year 
period;
    (2) Any ongoing or announced policy, program or operation of the 
agency; or
    (3) In the case of a noncareer employee as defined in Sec.  
2636.303(a) of this chapter, the general subject matter area, industry, 
or economic sector primarily affected by the programs and operations of 
his agency.
    (4) The restrictions in paragraphs (a)(2)(i)(E) (2) and (3) of this 
section do not apply to a special Government employee. The restriction 
in paragraph (a)(2)(i)(E)(1) of this section applies only during the 
current appointment of a special Government employee; except that if the 
special Government employee has not served or is not expected to serve 
for more than 60 days during the first year or any subsequent one year 
period of that appointment, the restriction applies only to particular 
matters involving specific parties in which the special Government 
employee has participated or is participating personally and 
substantially.

    Note: Section 2635.807(a)(2)(i)(E) 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 his 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: 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 his own collection as well as 
studying the field generally. He 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 his 
official duties, the Director may accept compensation for the lecture 
series. He could not, however, accept a similar invitation from a 
commodities broker.
    Example 2: A scientist at the National Institutes of Health, whose 
principal area of Government research is the molecular basis of the 
development of cancer, could not be

[[Page 655]]

compensated for writing a book which focuses specifically on the 
research she conducts in her position at NIH, and thus, relates to her 
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: On his own time, a National Highway Traffic Safety 
Administration employee prepared a consumer's guide to purchasing a safe 
automobile that focuses on automobile crash worthiness statistics 
gathered and made public by NHTSA. He 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: An employee of the Securities and Exchange Commission may 
not receive compensation for a book which focuses specifically on the 
regulation of the securities industry in the United States, since 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: 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 her 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: A program analyst employed at the Environmental 
Protection Agency 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: 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 his service under that 
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, 
he 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: 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 to assist in developing a program of grants 
by the Foundation 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 her appointment as a special Government employee, she 
may not receive compensation for an article about the NSF program she is 
participating in developing. Only the latter would concern a matter to 
which the special Government employee is assigned.
    Example 9: 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 she will 
serve fewer than 60 days under that appointment. Nevertheless, during 
her appointment, the expert

[[Page 656]]

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 has the meaning set forth in Sec.  2635.102(a), except 
that any component of a department designated as a separate agency under 
Sec.  2635.203(a) shall be considered a separate agency.
    (iii) Compensation includes any form of consideration, remuneration 
or income, including royalties, given for or in connection with the 
employee's teaching, speaking or writing activities. Unless accepted 
under specific statutory authority, such as 31 U.S.C. 1353, 5 U.S.C. 
4111 or 7342, or an agency gift acceptance statute, it includes 
transportation, lodgings and meals, whether provided in kind, by 
purchase of a ticket, by payment in advance or by reimbursement after 
the expense has been incurred. It does not include:
    (A) Items offered by any source that could be accepted from a 
prohibited source under subpart B of this part;
    (B) Meals or other incidents of attendance such as waiver of 
attendance fees or course materials furnished as part of the event at 
which the teaching or speaking takes place;
    (C) Copies of books or of publications containing articles, reprints 
of articles, tapes of speeches, and similar items that provide a record 
of the teaching, speaking or writing activity; or
    (D) In the case of an employee other than a covered noncareer 
employee as defined in 5 CFR 2636.303(a), travel expenses, consisting of 
transportation, lodgings or meals, incurred in connection with the 
teaching, speaking or writing activity.

    Note to paragraph (a)(2)(iii): Independent of Sec.  2635.807(a), 
other authorities, such as 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 her private capacity, a speed 
reading technique for which popular demand is growing. She 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 her travel expenses. She may accept the travel 
reimbursements, but not the speaker's fee. The speaking activity is 
related to her official duties under Sec.  2635.807(a)(2)(i)(C) 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 her recent 
appointment to a Cabinet-level position, a Government official is 
invited by the Chief Executive Officer of a major international 
corporation to attend 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 
Sec.  2635.807(a)(2)(i)(B) and, because she is a covered noncareer 
employee as defined in Sec.  2636.303(a) of this chapter, the travel 
expenses are prohibited compensation as to her.
    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 his 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 he is assigned. The sponsors of the 
conference offer to reimburse the attorney for expenses incurred in 
connection with his travel to New York. They also offer him, as 
compensation for his 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 his official duties 
under paragraphs (a)(2)(i)(E)(1) and (a)(2)(i)(E)(2) of Sec.  2635.807, 
but because he is not a covered noncareer employee as defined in Sec.  
2636.303(a) of this chapter, the expenses associated with his travel to 
New York are not a prohibited form of compensation as to him. The travel 
expenses to San Francisco, on the other hand, not incurred in connection 
with the speaking activity, are a prohibited form of compensation. If 
the attorney were a covered noncareer employee he would be barred from 
accepting the travel expenses to New York as well as the travel expenses 
to San Francisco.

[[Page 657]]

    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 his 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. Since the employee is speaking officially and the expense 
payments are accepted under 31 U.S.C. 1353, they are not prohibited 
compensation under Sec.  2635.807(a)(2)(iii). 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 
law, 5 U.S.C. 7342.

    (iv) Receive means that there is actual or constructive receipt of 
the compensation by the employee so that the employee has the right to 
exercise dominion and control over the compensation and to direct its 
subsequent use. Compensation received by an employee includes 
compensation which is:
    (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 his 
parent, sibling, spouse, child, or dependent relative.
    (v) Particular matter involving specific parties has the meaning set 
forth in Sec.  2637.102(a)(7) of this chapter.
    (vi) Personal and substantial participation has the meaning set 
forth in Sec.  2635.402(b)(4).
    (3) Exception for teaching certain courses. Notwithstanding that the 
activity would relate to his official duties under paragraphs (a)(2)(i) 
(B) or (E) of this section, an employee may accept compensation for 
teaching a course requiring multiple presentations by the employee if 
the course is offered as part of:
    (i) The regularly established curriculum of:
    (A) An institution of higher education as defined at 20 U.S.C. 
1141(a);
    (B) An elementary school as defined at 20 U.S.C. 2891(8); or
    (C) A secondary school as defined at 20 U.S.C. 2891(21); 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: 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: An attorney employed by the Equal Employment Opportunity 
Commission may accept compensation for teaching a course at a state 
college on the subject 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 her 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: An employee of the National Endowment for the Humanities 
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 
his official duties, 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 his 
official duties or that involves the use of nonpublic information.

    (b) Reference to official position. An employee who is engaged in 
teaching, speaking or writing as outside employment or as an outside 
activity shall not use or permit the use of his official title or 
position to identify him in connection with his teaching, speaking or 
writing activity or to promote any book, seminar, course, program or 
similar undertaking, except that:

[[Page 658]]

    (1) An employee may include or permit the inclusion of his title or 
position as one of several biographical details when such information is 
given to identify him in connection with his teaching, speaking or 
writing, provided that his title or position is given no more prominence 
than other significant biographical details;
    (2) An employee may use, or permit the use of, his 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) An employee who is ordinarily addressed using a general term of 
address, such as ``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 in connection with his teaching, speaking or writing.

    Note: 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: A meteorologist employed with the National Oceanic and 
Atmospheric Administration 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 his education and previous employment in course 
materials setting forth biographical data on all teachers involved in 
the graduate program. However, his 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 his 
name. In contrast, his title may be used in this manner when the 
meteorologist is authorized by NOAA to speak in his official capacity.
    Example 2: A doctor just employed by the Centers for Disease Control 
has written a paper based on his 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: An employee of the Federal Deposit Insurance Corporation 
has been asked to give a speech in his 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 his introduction at the meeting as an employee of the 
Federal Deposit Insurance Corporation provided that other pertinent 
biographical details are mentioned as well.

[57 FR 35042, Aug. 7, 1992; 57 FR 48557, Oct. 27, 1992, as amended at 62 
FR 48748, Sept. 17, 1997; 65 FR 53652, Sept. 5, 2000; 66 FR 59674, Nov. 
30, 2001]



Sec.  2635.808  Fundraising activities.

    An employee 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.
    (a) Definitions. For purposes of this section: (1) Fundraising means 
the raising of funds for a nonprofit organization, other than a 
political organization as defined in 26 U.S.C. 527(e), through:
    (i) Solicitation of funds or sale of items; or
    (ii) Participation in the conduct of an event by an employee where 
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 means active and 
visible participation in the promotion, production, or presentation of 
the event and includes serving as honorary chairperson, sitting at a 
head table during the event, and standing in a reception line. The term 
does not include mere attendance at an event provided that, to the 
employee's knowledge, his attendance is not used by the nonprofit 
organization to promote the event. While the term generally includes any 
public speaking during the event, it does not include the delivery of an 
official speech as defined in paragraph (a)(3) of this section or any 
seating or other participation appropriate to the delivery of such a 
speech. Waiver of a fee for attendance

[[Page 659]]

at an event by a participant in the conduct of that event does not 
constitute a gift for purposes of subpart B of this part.

    Note: 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: The Secretary of Transportation has been asked to serve 
as master of ceremonies for an All-Star Gala. Tickets to the event cost 
$150 and are tax deductible as a charitable donation, with proceeds to 
be donated to a local hospital. By serving as master of ceremonies, the 
Secretary would be participating in fundraising.

    (3) Official speech means a speech given by an employee in his 
official capacity on a subject matter that relates to his official 
duties, provided that the employee's agency has determined that the 
event at which the speech is to be given provides an appropriate forum 
for the dissemination of the information to be presented and provided 
that the employee does not request donations or other support for the 
nonprofit organization. Subject matter relates to an employee's official 
duties if it focuses specifically on the employee's official duties, on 
the responsibilities, programs, or operations of the employee's agency 
as described in Sec.  2635.807(a)(2)(i)(E), or on matters of 
Administration policy on which the employee has been authorized to 
speak.

    Example 1: The Secretary of Labor is invited to speak at a banquet 
honoring a distinguished labor leader, the proceeds of which will 
benefit a nonprofit organization that assists homeless families. She 
devotes a major portion of her speech to the Administration's Points of 
Light initiative, an effort to encourage citizens to volunteer their 
time to help solve serious social problems. Because she is authorized to 
speak on Administration policy, her remarks at the banquet are an 
official speech. However, the Secretary would be engaged in fundraising 
if she were to conclude her official speech with a request for donations 
to the nonprofit organization.
    Example 2: A charitable organization is sponsoring a two-day tennis 
tournament at a country club in the Washington, DC area to raise funds 
for recreational programs for learning disabled children. The 
organization has invited the Secretary of Education to give a speech on 
federally funded special education programs at the awards dinner to be 
held at the conclusion of the tournament and a determination has been 
made that the dinner is an appropriate forum for the particular speech. 
The Secretary may speak at the dinner and, under Sec.  2635.204(g)(1), 
he may partake of the meal provided to him at the dinner.

    (4) Personally solicit means to request or otherwise encourage 
donations or other support either through person-to-person contact or 
through the use of one's name or identity in correspondence or by 
permitting its use by others. It does not include the solicitation of 
funds through the media or through either oral remarks, or the 
contemporaneous dispatch of like items of mass-produced correspondence, 
if such remarks or correspondence are addressed to a group consisting of 
many persons, unless it is known to the employee that the solicitation 
is targeted at subordinates or at persons who are prohibited sources 
within the meaning of Sec.  2635.203(d). It does not include behind-the-
scenes assistance in the solicitation of funds, such as drafting 
correspondence, stuffing envelopes, or accounting for contributions.

    Example 1: An employee of the Department of Energy who signs a 
letter soliciting funds for a local private school does not ``personally 
solicit'' funds when 500 copies of the letter, which makes no mention of 
his DOE position and title, are mailed to members of the local 
community, even though some individuals who are employed by Department 
of Energy contractors may receive the letter.

    (b) Fundraising in an official capacity. An employee may participate 
in fundraising in an official capacity if, in accordance with a statute, 
Executive order, regulation or otherwise as determined by the agency, he 
is authorized to engage in the fundraising activity as part of his 
official duties. When authorized to participate in an official capacity, 
an employee may use his official title, position and authority.


[[Page 660]]


    Example 1: Because participation in his official capacity is 
authorized under part 950 of this title, the Secretary of the Army may 
sign a memorandum to all Army personnel encouraging them to donate to 
the Combined Federal Campaign.

    (c) Fundraising in a personal capacity. An employee may engage in 
fundraising in his personal capacity provided that he does not:
    (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 
Sec.  2635.203(d); or
    (ii) Known to the employee, if the employee is a special Government 
employee, to be a prohibited source within the meaning of Sec.  
2635.203(d)(4) that is a person whose interests may be substantially 
affected by performance or nonperformance of his official duties;
    (2) Use or permit the use of his official title, position or any 
authority associated with his 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.

    Example 1: A nonprofit organization is sponsoring a golf tournament 
to raise funds for underprivileged children. The Secretary of the Navy 
may not enter the tournament with the understanding that the 
organization intends to attract participants by offering other entrants 
the opportunity, in exchange for a donation in the form of an entry fee, 
to spend the day playing 18 holes of golf in a foursome with the 
Secretary of the Navy.
    Example 2: An employee of the Merit Systems Protection Board may not 
use the agency's photocopier to reproduce fundraising literature for her 
son's private school. Such use of the photocopier would violate the 
standards at Sec.  2635.704 regarding use of Government property.
    Example 3: An Assistant Attorney General may not sign a letter 
soliciting funds for a homeless shelter as ``John Doe, Assistant 
Attorney General.'' He also may not sign a letter with just his 
signature, ``John Doe,'' soliciting funds from a prohibited source, 
unless the letter is one of many identical, mass-produced letters 
addressed to a large group where the solicitation is not known to him to 
be targeted at persons who are either prohibited sources or 
subordinates.

[57 FR 35041, Aug. 7, 1992; 57 FR 48557, Oct. 27, 1992; 61 FR 50691, 
Sept. 27, 1996]



Sec.  2635.809  Just financial obligations.

    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. 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



Sec.  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 Sec.  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.



Sec.  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)).

[[Page 661]]

    (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, with implementing regulations at parts 2637 and 2641 of 
this chapter).
    (f) The prohibition on certain former agency officials' acceptance 
of compensation from a contractor (41 U.S.C. 423(d)).
    (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).
    (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. 423(c)).
    (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. 423(a) and (b)).
    (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).

[[Page 662]]

    (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 
his employment (18 U.S.C. 654).

[57 FR 35042, Aug. 7, 1992, as amended at 62 FR 48748, Sept. 17, 1997; 
64 FR 2422, Jan. 14, 1999; 65 FR 69657, Nov. 20, 2000]



PART 2636_LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND AFFILIATIONS 
FOR CERTAIN NONCAREER EMPLOYEES--Table of Contents



                      Subpart A_General Provisions

Sec.
2636.101 Purpose.
2636.102 Definitions.
2636.103 Advisory opinions.
2636.104 Civil, disciplinary and other action.

Subpart B [Reserved]

     Subpart C_Outside Earned Income Limitation and Employment and 
   Affiliation Restrictions Applicable to Certain Noncareer Employees

2636.301 General standards.
2636.302 Relationship to other laws and regulations.
2636.303 Definitions.
2636.304 The 15 percent limitation on outside earned income.
2636.305 Compensation and other restrictions relating to professions 
          involving a fiduciary relationship.
2636.306 Compensation restriction applicable to service as an officer or 
          member of a board.
2636.307 Requirement for advance authorization to engage in teaching for 
          compensation.

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); Pub. L. 
101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil Penalties 
Inflation Adjustment Act of 1990), as amended by Sec. 31001, Pub. L. 
104-134, 110 Stat. 1321 (Debt Collection Improvement Act of 1996) and 
Sec. 701, Pub. L. 114-74 (Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015); 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: 56 FR 1723, Jan. 17, 1991, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2636.101  Purpose.

    This part is issued under authority of title VI of the Ethics Reform 
Act of 1989 (Pub. L. 101-194, as amended), to implement the 15 percent 
outside earned income limitation at 5 U.S.C. app. 501(a) and the 
limitations at 5 U.S.C. app. 502 on outside employment and affiliations, 
which are applicable to certain noncareer employees.

[63 FR 43068, Aug. 12, 1998]



Sec.  2636.102  Definitions.

    The definitions listed below are of general applicability to this 
part. Additional definitions of narrower applicability appear in the 
subparts or sections of subparts to which they apply. For purposes of 
this part:
    (a) Agency ethics official refers to the designated agency ethics 
official and to any deputy ethics official described in Sec.  2638.204 
of this subchapter to whom authority to issue advisory opinions under 
Sec.  2636.103 of this part has been delegated by the designated agency 
ethics official.
    (b) Designated agency ethics official refers to the official 
described in Sec.  2638.201 of this subchapter.
    (c) Employee means any officer or employee of the executive branch, 
other than a special Government employee as defined in 18 U.S.C. 202. It 
includes officers but not enlisted members of the uniformed services as 
defined in 5 U.S.C. 2101(3). It does not include the President or Vice 
President.
    (d) Executive branch includes each executive agency as defined in 5 
U.S.C. 105 and any other entity or administrative unit in the executive 
branch. However, it does not include any agency that is defined by 5 
U.S.C. app. 109(11) as within the legislative branch.
    (e) The terms he, his, and him include ``she,'' ``hers'' and 
``her.''

[56 FR 1723, Jan. 17, 1991, as amended at 63 FR 43068, Aug. 12, 1998]



Sec.  2636.103  Advisory opinions.

    (a) Request for an advisory opinion. (1) An employee may request an 
advisory

[[Page 663]]

opinion from an agency ethics official as to whether specific conduct 
which has not yet occurred would violate any provision contained in this 
part.
    (2) An advisory opinion may not be obtained for the purpose of 
establishing whether a noncareer employee who is subject to the 
restrictions in subpart C of this part may receive compensation for 
teaching. An advisory opinion issued under this section may not be 
substituted for the advance written approval required by Sec.  2636.307 
of this part.
    (3) The employee's request for an advisory opinion shall be 
submitted in writing, shall be dated and signed, and shall include all 
information reasonably available to the employee that is relevant to the 
inquiry. Where, in the opinion of the agency ethics official, complete 
information has not been provided, that official may request the 
employee to furnish additional information necessary to issue an 
opinion.
    (b) Issuance of advisory opinion. As soon as practicable after 
receipt of all necessary information, the agency ethics official shall 
issue a written opinion as to whether the conduct in issue would violate 
any provision contained in this part. Where conduct which would not 
violate this part would violate another statute relating to conflicts of 
interest or applicable standards of conduct, the advisory opinion shall 
so state and shall caution the employee against engaging in the conduct.
    (1) For the purpose of issuing an advisory opinion, the agency 
ethics official may request additional information from agency sources, 
including the requesting employee's supervisor, and may rely upon the 
accuracy of information furnished by the requester or any agency source 
unless he has reason to believe that the information is fraudulent, 
misleading or otherwise incorrect.
    (2) A copy of the request and advisory opinion shall be retained for 
a period of 6 years.
    (c) Good faith reliance on an advisory opinion. An employee who 
engages in conduct in good faith reliance upon an advisory opinion 
issued to him under this section shall not be subject to civil or 
disciplinary action for having violated this part. Where an employee 
engages in conduct in good faith reliance upon an advisory opinion 
issued by an ethics official of his agency to another, neither the 
Office of Government Ethics nor the employing agency shall initiate 
civil or disciplinary action under this part for conduct that is 
indistinguishable in all material aspects from the conduct described in 
the advisory opinion. However, an advisory opinion issued under this 
section shall not insulate the employee from other civil or disciplinary 
action if his conduct violates any other laws, rule, regulation or 
lawful management policy or directive. Where an employee has actual 
knowledge or reason to believe that the opinion is based on fraudulent, 
misleading, or otherwise incorrect information, the employee's reliance 
on the opinion will not be deemed to be in good faith.
    (d) Revision of an ethics opinion. Nothing in this section prohibits 
an agency ethics official from revising an ethics opinion on a 
prospective basis where he determines that the ethics opinion previously 
issued is incorrect, either as a matter of law or because it is based on 
erroneous information.

[56 FR 1723, Jan. 17, 1991, as amended at 63 FR 43068, Aug. 12, 1998; 72 
FR 16987, Apr. 6, 2007]



Sec.  2636.104  Civil, disciplinary and other action.

    (a) Civil action. Except when the employee engages in conduct in 
good faith reliance upon an advisory opinion issued under Sec.  
2636.103, an employee who engages in any conduct in violation of the 
prohibitions, limitations and restrictions contained in this part may be 
subject to civil action under 5 U.S.C. app. 504(a) and a civil monetary 
penalty of not more than the amounts set in Table 1 to this section, as 
adjusted in accordance with the inflation adjustment procedures 
prescribed in the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended, or the amount of the compensation the individual 
received for the prohibited conduct, whichever is greater.

[[Page 664]]



                       Table 1 to Sec.   2636.104
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     20,134
------------------------------------------------------------------------

    (b) Disciplinary and corrective action. An agency may initiate 
disciplinary or corrective action against an employee who violates any 
provision of this part, which may be in addition to any civil penalty 
prescribed by law. When an employee engages in conduct in good faith 
reliance upon an advisory opinion issued under Sec.  2636.103 of this 
subpart, an agency may not initiate disciplinary or corrective action 
for violation of this part. Disciplinary action includes reprimand, 
suspension, demotion and removal. Corrective action includes any action 
necessary to remedy a past violation or prevent a continuing violation 
of this part, including but not limited to restitution or termination of 
an activity. It is the responsibility of the employing agency to 
initiate disciplinary or corrective action in appropriate cases. 
However, the Director of the Office of Government Ethics may order 
corrective action or recommend disciplinary action under the procedures 
at part 2638 of this subchapter. The imposition of disciplinary action 
is at the discretion of the employing agency.

[56 FR 1723, Jan. 17, 1991, as amended at 63 FR 43068, Aug. 12, 1998; 64 
FR 47097, Aug. 30, 1999; 81 FR 41790, June 28, 2016; 82 FR 8133, Jan. 
24, 2017; 83 FR 2331, Jan. 17, 2018; 84 FR 6055, Feb. 26, 2019]

Subpart B [Reserved]



     Subpart C_Outside Earned Income Limitation and Employment and 
   Affiliation Restrictions Applicable to Certain Noncareer Employees



Sec.  2636.301  General standards.

    A covered noncareer employee shall not:
    (a) Receive outside earned income in excess of the 15 percent 
limitation described in Sec.  2636.304 of this subpart;
    (b) Receive compensation or allow the use of his name in violation 
of the restrictions relating to professions involving a fiduciary 
relationship described in Sec.  2636.305 of this subpart;
    (c) Receive compensation for serving as an officer or board member 
in violation of the restriction described in Sec.  2636.306 of this 
subpart; or
    (d) Receive compensation for teaching without having first obtained 
advance authorization as required by Sec.  2636.307 of this subpart.



Sec.  2636.302  Relationship to other laws and regulations.

    The limitations and restrictions contained in this section are in 
addition to any limitations and restrictions imposed upon an employee by 
applicable standards of conduct or by reason of any statute or 
regulation relating to conflicts of interest. Even though conduct or the 
receipt of compensation is not prohibited by this subpart, an employee 
should accept compensation or engage in the activity for which 
compensation is offered only after determining that it is otherwise 
permissible. In particular, a covered noncareer employee should accept 
compensation only after determining that its receipt does not violate 
section 102 of Executive Order 12674, as amended, which prohibits a 
covered noncareer employee who is also a Presidential appointee to a 
full-time noncareer position from receiving any outside earned income 
for outside employment or for any other activity performed during that 
Presidential appointment.

[56 FR 1723, Jan. 17, 1991, as amended at 63 FR 43069, Aug. 12, 1998]



Sec.  2636.303  Definitions.

    For purposes of this section:
    (a) Covered noncareer employee means an employee, other than a 
Special Government employee as defined in 18 U.S.C. 202, who occupies a 
position classified above GS-15 of the General Schedule or, in the case 
of positions not under the General Schedule, for which the rate of basic 
pay is equal to or greater than 120 percent of the minimum rate of basic 
pay payable for GS-15 of the General Schedule, and who is:
    (1) Appointed by the President to a position described in the 
Executive Schedule, 5 U.S.C. 5312 through 5317, or to a position that, 
by statute or as a

[[Page 665]]

matter of practice, is filled by Presidential appointment, other than:
    (i) A position within the uniformed services; or
    (ii) A position within the foreign service below the level of 
Assistant Secretary or Chief of Mission;
    (2) A noncareer member of the Senior Executive Service or of another 
SES-type system, such as the Senior Foreign Service;
    (3) Appointed to a Schedule C position or to a position under an 
agency-specific statute that establishes appointment criteria 
essentially the same as those set forth in Sec.  213.3301 of this title 
for Schedule C positions; or
    (4) Appointed to a noncareer executive assignment position or to a 
position under an agency-specific statute that establishes appointment 
criteria essentially the same as those for noncareer executive 
assignment positions.

For purposes of applying this definition to an individual who holds a 
General Schedule or other position that provides several rates of pay or 
steps per grade, his rate of basic pay shall be the rate of pay for the 
lowest step of the grade at which he is employed.

    Example 1. A Schedule C appointee to a position with the United 
States Information Agency who holds a GS-15 position and who is 
compensated at the rate for GS-15, Step 9 is not a covered noncareer 
employee even though the pay he receives in a calendar year exceeds the 
annual pay for a position above GS-15. Notwithstanding that he is 
compensated at Step 9, the basic rate of pay for the GS-15 position he 
holds is the rate in effect for GS-15, Step 1 of the General Schedule, 
which is lower than the rate for a position above GS-15.
    Example 2. An employee of the Environmental Protection Agency who 
has been a career GS-15 employee for 10 years and who is offered a non-
career SES position with the Federal Aviation Administration will, if he 
accepts the offer, become a covered noncareer employee by reason of that 
appointment, regardless of his former status.
    Example 3. A Department of Justice employee who holds a Schedule A 
appointment is not a covered noncareer employee even though he does not 
have competitive status within the meaning of Sec.  212.301 of this 
title.

    (b) Outside earned income and compensation both mean wages, 
salaries, honoraria, commissions, professional fees and any other form 
of compensation for services other than salary, benefits and allowances 
paid by the United States Government. Neither term includes:
    (1) Items that may be accepted under applicable standards of conduct 
gift regulations if they were offered by a prohibited source;
    (2) Income attributable to service with the military reserves or 
national guard;
    (3) Income from pensions and other continuing benefits attributable 
to previous employment or services;
    (4) Income from investment activities where the individual's 
services are not a material factor in the production of income;
    (5) Copyright royalties, fees, and their functional equivalent, from 
the use or sale of copyright, patent and similar forms of intellectual 
property rights, when received from established users or purchasers of 
those rights;
    (6) Actual and necessary expenses incurred by the employee in 
connection with an outside activity. Where such expenses are paid or 
reimbursed by another person, the amount of any such payment shall not 
be counted as compensation or outside earned income. Where such expenses 
are not paid or reimbursed, the amount of compensation or earned income 
shall be determined by subtracting the actual and necessary expenses 
incurred by the employee from any payment received for the activity; or
    (7) Compensation for:
    (i) Services rendered prior to January 1, 1991, or prior to becoming 
a covered noncareer employee;
    (ii) Services rendered in satisfaction of a covered noncareer 
employee's obligation under a contract entered into prior to January 1, 
1991; or
    (iii) Services which the covered noncareer employee first undertook 
to provide prior to January 1, 1991, where the standards of the 
applicable profession require the employee to complete the case or other 
undertaking.

    Example 1. A covered noncareer employee is a limited partner in a 
partnership that invests in commercial real estate. Because he does not 
take an active role in the management of the partnership, his share of 
the partnership income is neither ``outside earned income'' nor 
``compensation.''

[[Page 666]]

    Example 2. A covered noncareer employee of the Civil Rights 
Commission serves without compensation as a member of the Board of 
Visitors for a university. The roundtrip airfare and hotel expenses paid 
by the university to permit him to attend quarterly meetings of the 
Board are neither ``outside earned income'' or ``compensation.''
    Example 3. Where a covered noncareer employee pays for transcripts 
of a hearing in which he is providing pro bono legal representation, 
reimbursements for those expenses by a legal aid organization are 
neither ``outside earned income'' nor ``compensation.''
    Example 4. During the term of his appointment, a Deputy Assistant 
Secretary of Labor enters into a contract to write a book of fictional 
short stories. Royalties based on actual sales of the book after 
publication are investment income attributable to the property interest 
he retains in the book and, as such, are neither ``outside earned 
income'' nor ``compensation.''

    (c) Receive means that the employee has the right to exercise 
dominion and control over the compensation or outside earned income and 
direct its subsequent use. Compensation or outside earned income is 
received by an employee if it is for his conduct and:
    (1) If it is paid to any other person on the basis of designation, 
recommendation or other specification by the employee; or
    (2) If, with the employee's knowledge and acquiescence, it is paid 
to his parent, sibling, spouse, child or dependent relative.


Compensation that is prohibited by Sec.  2636.305 through Sec.  2636.307 
of this subpart is received while an individual is an employee if it is 
for conduct by him that occurs while an employee, even though actual 
payment may be deferred until after Federal employment has terminated. 
Also, compensation or outside earned income donated to a charitable 
organization is received by the employee.

[56 FR 1723, Jan. 17, 1991, as amended at 63 FR 43069, Aug. 12, 1998; 64 
FR 2422, Jan. 14, 1999; 72 FR 16987, Apr. 6, 2007]



Sec.  2636.304  The 15 percent limitation on outside earned income.

    (a) Limitation applicable to individuals who are covered noncareer 
employees on January 1 of any calendar year. A covered noncareer 
employee may not, in any calendar year, receive outside earned income 
attributable to that calendar year which exceeds 15 percent of the 
annual rate of basic pay for level II of the Executive Schedule under 5 
U.S.C. 5313, as in effect on January 1 of such calendar year. The 
effective date of a change in the rate for level II of the Executive 
Schedule shall be the date on which a new rate of basic pay for level II 
first becomes applicable to any level II position.

    Note: Notwithstanding the 15 percent limitation described in this 
section, a covered noncareer employee who is a Presidential appointee to 
a full-time noncareer position is prohibited by section 102 of Executive 
Order 12674, as amended, from receiving any outside earned income for 
outside employment or any other activity performed during that 
Presidential appointment.
    Example 1. Notwithstanding that the compensation he will receive 
would not exceed 15 percent of the rate for level II of the Executive 
Schedule, a covered noncareer employee of the Department of Energy may 
not receive any compensation for teaching a university course unless he 
first receives the authorization required by Sec.  2636.307 of this 
subpart.

    (b) Limitation applicable to individuals who become covered 
noncareer employees after January 1 of any calendar year. The outside 
earned income limitation that applies to an individual who becomes a 
covered noncareer employee during a calendar year shall be determined on 
a pro rata basis. His outside earned income while so employed in that 
calendar year shall not exceed 15 percent of the annual rate of basic 
pay for level II of the Executive Schedule in effect on January 1 of the 
calendar year divided by 365 and multiplied by the number of days during 
that calendar year that he holds the covered noncareer position.

    Example 1. A former college professor received an appointment to a 
noncareer Senior Executive Service position on November 1, 1991. The 
rate of basic pay in effect for Executive Level II on January 1, 1991 
was $125,100. For the 61 day period from November 1, 1991 through 
December 31, 1991, the amount of outside income he may earn is limited 
to $3,129. That amount is determined as follows:
    Step 1. The rate of basic pay for Executive Level II as in effect on 
January 1 of that year ($125,100) is divided by 365. That quotient is 
$342;
    Step 2. The dollar amount determined by Step 1 ($342) is then 
multiplied by the 61 days

[[Page 667]]

the employee held the covered noncareer position. That product is 
$20,862;
    Step 3. The dollar amount determined by Step 2 ($20,862) is 
multiplied by .15 or 15 percent. The product ($3,129) is the maximum 
outside earned income the employee may have in the particular year 
attributable to the period of his service in a covered noncareer 
position.

    (c) Computation principle. For purposes of any computation required 
by this section, any amount of $.50 or more shall be rounded up to the 
next full dollar and any amount less than $.50 shall be rounded down to 
the next full dollar.
    (d) Year to which outside earned income is attributable. Regardless 
of when it is paid, outside earned income is attributable to the 
calendar year in which the services for which it is paid were provided.



Sec.  2636.305  Compensation and other restrictions relating to professions 
involving a fiduciary relationship.

    (a) Applicable restrictions. A covered noncareer employee shall not:
    (1) Receive compensation for:
    (i) Practicing a profession which involves a fiduciary relationship; 
or
    (ii) Affiliating with or being employed to perform professional 
duties by a firm, partnership, association, corporation, or other entity 
which provides professional services involving a fiduciary relationship; 
or
    (2) Permit his name to be used by any firm, partnership, 
association, corporation, or other entity which provides professional 
services involving a fiduciary relationship.

    Example 1. A covered noncareer employee of the White House Office 
who is an attorney may not receive compensation for drafting a will for 
her friend. She may, however, participate in her bar association's pro 
bono program by providing free legal services for the elderly, provided 
her participation in the program is otherwise proper. For example, 18 
U.S.C. 205 would prohibit her from representing her pro bono client in a 
hearing before the Social Security Administration.
    Example 2. An accountant named C.B. Debit who is offered a covered 
noncareer appointment must terminate his partnership in the accounting 
firm of Delight, Waterhose and Debit upon appointment. Because his 
deceased father, J.R. Debit, was the founding partner for whom the firm 
is named, the name Debit need not be deleted from the firm's name. 
However, the name C.B. Debit may not appear on the firm's letterhead 
after the individual enters on duty as a covered noncareer employee.

    (b) Definitions. For purposes of this section:
    (1) Profession means a calling requiring specalized knowledge and 
often long and intensive preparation including instruction in skills and 
methods as well as in the scientific, historical or scholarly principles 
underlying such skills and methods. It is characteristic of a profession 
that those in the profession, through force of organization or concerted 
opinion, establish and maintain high standards of achievement and 
conduct, and commit its practitioners to continued study of the field. 
Consulting and advising with respect to subject matter that is generally 
regarded as the province of practitioners of a profession shall be 
considered a profession.
    (2) Profession which involves a fiduciary relationship means a 
profession in which the nature of the services provided causes the 
recipient of those services to place a substantial degree of trust and 
confidence in the integrity, fidelity and specialized knowledge of the 
practitioner. Such professions are not limited to those whose 
practitioners are legally defined as fiduciaries and include 
practitioners in such areas as law, insurance, medicine, architecture, 
financial services and accounting. A covered noncareer employee who is 
uncertain whether a particular field of endeavor is a profession which 
involves a fiduciary relationship may request an advisory opinion under 
Sec.  2636.103.

    Example 1. In view of the standards of the profession which require 
a licensed real estate broker to act in the best interests of his 
clients, the selling of real estate by a licensed broker involves the 
practice of a profession involving a fiduciary relationship.
    Example 2. A covered noncareer employee may receive the customary 
fee for serving as the executor of his mother's estate, provided he does 
not violate the applicable limitation on the amount of outside earned 
income he may receive. Although the executor of an estate has fiduciary 
obligations, serving as an

[[Page 668]]

executor in these circumstances does not involve the practice of a 
profession and, therefore, is not prohibited. He could not, however, 
serve for compensation as attorney for the estate.

[56 FR 1723, Jan. 17, 1991, as amended at 58 FR 69176, Dec. 30, 1993]



Sec.  2636.306  Compensation restriction applicable to service as an officer 
or member of a board.

    (a) Applicable restriction. A covered noncareer employee shall not 
receive compensation for serving as an officer or member of the board of 
any association, corporation or other entity. Nothing in this section 
prohibits uncompensated service with any entity.
    (b) Definition. For purposes of this section, the phrase 
``association, corporation or other entity'' is not limited to for-
profit entities, but includes nonprofit entities, such as charitable 
organizations and professional associations, as well as any unit of 
state or local government.

    Example 1. A covered noncareer employee of the Environmental 
Protection Agency may not serve with compensation on the board of 
directors of his sister's closely-held computer software corporation.
    Example 2. A covered noncareer employee of the Department of the 
Navy may serve without compensation as an officer of a charitable 
organization that operates a hospice.
    Example 3. A covered noncareer employee of the Coast Guard appointed 
to serve as a member of the board of education of the county in which 
she is a resident may not receive compensation for that service.



Sec.  2636.307  Requirement for advance authorization to engage in teaching 
for compensation.

    (a) Authorization requirement. A covered noncareer employee may 
receive compensation for teaching only when specifically authorized in 
advance by the designated agency ethics official.
    (b) Definition. For purposes of this section ``teaching'' means any 
activity that involves oral presentation or personal interaction, the 
primary function of which is to instruct or otherwise impart knowledge 
or skill. It is not limited to teaching that occurs in a formal setting, 
such as a classroom, but extends to instruction on an individual basis 
or in an informal setting.
    (c) Request for authorization. An employee may request authorization 
to engage in compensated teaching activities by forwarding a written 
request to the designated agency ethics official. The request shall 
describe the employee's official duties, the subject matter of the 
teaching activity, the entity sponsoring the course, and the student, 
class or audience to be taught. In addition, it shall set forth the 
terms of the compensation arrangement and identify the source of the 
payment. The request shall be accompanied by any contract or employment 
agreement and any literature describing, publicizing or otherwise 
promoting the class, classes or course.
    (d) Standard for authorization. Compensated teaching may be approved 
by the designated agency ethics official only when:
    (1) The teaching will not interfere with the performance of the 
employee's official duties or give rise to an appearance that the 
teaching opportunity was extended to the employee principally because of 
his official position;
    (2) The employee's receipt of compensation does not violate any of 
the limitations and prohibitions on honoraria, compensation or outside 
earned income contained in this part; and
    (3) Neither the teaching activity nor the employee's receipt of 
compensation therefor will violate applicable standards of conduct or 
any statute or regulation related to conflicts of interests.
    (e) Determination and authorization. The determination by the 
designated agency ethics official to grant or deny authorization to 
engage in teaching for compensation shall be in writing and shall be 
final. The authority of the designated agency ethics official to 
authorize compensated teaching may not be delegated to any person other 
than the alternate designated agency ethics official described in Sec.  
2638.202(b).



PART 2638_ EXECUTIVE BRANCH ETHICS PROGRAM--Table of Contents



                 Subpart A_Mission and Responsibilities

Sec.
2638.101 Mission.
2638.102 Government ethics responsibilities of employees.
2638.103 Government ethics responsibilities of supervisors.

[[Page 669]]

2638.104 Government ethics responsibilities of agency ethics officials.
2638.105 Government ethics responsibilities of lead human resources 
          officials.
2638.106 Government ethics responsibilities of Inspectors General.
2638.107 Government ethics responsibilities of agency heads.
2638.108 Government ethics responsibilities of the Office of Government 
          Ethics.

       Subpart B_Procedures of the Executive Branch Ethics Program

2638.201 In general.
2638.202 Furnishing records and information generally.
2638.203 Collection of public financial disclosure reports required to 
          be submitted to the Office of Government Ethics.
2638.204 Collection of other public financial disclosure reports.
2638.205 Collection of confidential financial disclosure reports.
2638.206 Notice to the Director of certain referrals to the Department 
          of Justice.
2638.207 Annual report on the agency's ethics program.
2638.208 Written guidance on the executive branch ethics program.
2638.209 Formal advisory opinions.
2638.210 Presidential transition planning.

                  Subpart C_Government Ethics Education

2638.301 In general.
2638.302 Definitions.
2638.303 Notice to prospective employees.
2638.304 Initial ethics training.
2638.305 Additional ethics briefing for certain agency leaders.
2638.306 Notice to new supervisors.
2638.307 Annual ethics training for confidential filers and certain 
          other employees.
2638.308 Annual ethics training for public filers.
2638.309 Agency-specific ethics education requirements.
2638.310 Coordinating the agency's ethics education program.

     Subpart D_Correction of Executive Branch Agency Ethics Programs

2638.401 In general.
2638.402 Informal action.
2638.403 Formal action.

       Subpart E_Corrective Action Involving Individual Employees

2638.501 In general.
2638.502 Violations of criminal provisions related to government ethics.
2638.503 Recommendations and advice to employees and agencies.
2638.504 Violations of noncriminal provisions related to government 
          ethics.

                      Subpart F_General Provisions

2638.601 Authority and purpose.
2638.602 Agency regulations.
2638.603 Definitions.
2638.604 Key program dates.

    Authority: 5 U.S.C. App. 101-505; 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: 81 FR 76273, Nov. 2, 2016, unless otherwise noted.



                 Subpart A_Mission and Responsibilities



Sec.  2638.101  Mission.

    (a) Mission. The primary mission of the executive branch ethics 
program is to prevent conflicts of interest on the part of executive 
branch employees.
    (b) Breadth. The executive branch ethics program works to ensure 
that public servants make impartial decisions based on the interests of 
the public when carrying out the governmental responsibilities entrusted 
to them, serve as good stewards of public resources, and loyally adhere 
to the Constitution and laws of the United States. In the broadest sense 
of the term, ``conflicts of interest'' stem from financial interests; 
business or personal relationships; misuses of official position, 
official time, or public resources; and the receipt of gifts. The 
mission is focused on both conflicts of interest and the appearance of 
conflicts of interest.
    (c) Conflicts-based program. The executive branch ethics program is 
a conflicts-based program, rather than a solely disclosure-based 
program. While transparency is an invaluable tool for promoting and 
monitoring ethical conduct, the executive branch ethics program requires 
more than transparency. This program seeks to ensure the integrity of 
governmental decision making and to promote public confidence by 
preventing conflicts of interest. Taken together, the systems in place 
to identify and address conflicts of interest establish a foundation on 
which to build and sustain an ethical culture in the executive branch.

[[Page 670]]



Sec.  2638.102  Government ethics responsibilities of employees.

    Consistent with the fundamental principle that public service is a 
public trust, every employee in the executive branch plays a critical 
role in the executive branch ethics program. As provided in the 
Standards of Conduct at part 2635 of this chapter, employees must 
endeavor to act at all times in the public's interest, avoid losing 
impartiality or appearing to lose impartiality in carrying out official 
duties, refrain from misusing their offices for private gain, serve as 
good stewards of public resources, and comply with the requirements of 
government ethics laws and regulations, including any applicable 
financial disclosure requirements. Employees must refrain from 
participating in particular matters in which they have financial 
interests and, pursuant to Sec.  2635.402(f) of this chapter, should 
notify their supervisors or ethics officials when their official duties 
create the substantial likelihood of such conflicts of interest. 
Collectively, the charge of employees is to make ethical conduct the 
hallmark of government service.



Sec.  2638.103  Government ethics responsibilities of supervisors.

    Every supervisor in the executive branch has a heightened personal 
responsibility for advancing government ethics. It is imperative that 
supervisors serve as models of ethical behavior for subordinates. 
Supervisors have a responsibility to help ensure that subordinates are 
aware of their ethical obligations under the Standards of Conduct and 
that subordinates know how to contact agency ethics officials. 
Supervisors are also responsible for working with agency ethics 
officials to help resolve conflicts of interest and enforce government 
ethics laws and regulations, including those requiring certain employees 
to file financial disclosure reports. In addition, supervisors are 
responsible, when requested, for assisting agency ethics officials in 
evaluating potential conflicts of interest and identifying positions 
subject to financial disclosure requirements.



Sec.  2638.104  Government ethics responsibilities of agency ethics officials.

    (a) Appointment of a Designated Agency Ethics Official. Each agency 
head must appoint a Designated Agency Ethics Official (DAEO). The DAEO 
is the employee with primary responsibility for directing the daily 
activities of the agency's ethics program and coordinating with the 
Office of Government Ethics.
    (b) Qualifications necessary to serve as DAEO. The following are 
necessary qualifications of an agency's DAEO:
    (1) The DAEO must be an employee at an appropriate level in the 
organization, such that the DAEO is able to coordinate effectively with 
officials in relevant agency components and gain access to the agency 
head when necessary to discuss important matters related to the agency's 
ethics program.
    (2) The DAEO must be an employee who has demonstrated the knowledge, 
skills, and abilities necessary to manage a significant agency program, 
to understand and apply complex legal requirements, and to generate 
support for building and sustaining an ethical culture in the 
organization.
    (3) On an ongoing basis, the DAEO must demonstrate the capacity to 
serve as an effective advocate for the executive branch ethics program, 
show support for the mission of the executive branch ethics program, 
prove responsive to the Director's requests for documents and 
information related to the ethics program, and serve as an effective 
liaison with the Office of Government Ethics.
    (4) In any agency with 1,000 or more employees, any DAEO appointed 
after the effective date of this regulation must be an employee at the 
senior executive level or higher, unless the agency has fewer than 10 
positions at that level.
    (c) Responsibilities of the DAEO. Acting directly or through other 
officials, the DAEO is responsible for taking actions authorized or 
required under this subchapter, including the following:
    (1) Serving as an effective liaison to the Office of Government 
Ethics;
    (2) Maintaining records of agency ethics program activities;
    (3) Promptly and timely furnishing the Office of Government Ethics 
with

[[Page 671]]

all documents and information requested or required under subpart B of 
this part;
    (4) Providing advice and counseling to prospective and current 
employees regarding government ethics laws and regulations, and 
providing former employees with advice and counseling regarding post-
employment restrictions applicable to them;
    (5) Carrying out an effective government ethics education program 
under subpart C of this part;
    (6) Taking appropriate action to resolve conflicts of interest and 
the appearance of conflicts of interest, through recusals, directed 
divestitures, waivers, authorizations, reassignments, and other 
appropriate means;
    (7) Consistent with Sec.  2640.303 of this chapter, consulting with 
the Office of Government Ethics regarding the issuance of waivers 
pursuant to 18 U.S.C. 208(b);
    (8) Carrying out an effective financial disclosure program, by:
    (i) Establishing such written procedures as are appropriate relative 
to the size and complexity of the agency's financial disclosure program 
for the filing, review, and, when applicable, public availability of 
financial disclosure reports;
    (ii) Requiring public and confidential filers to comply with 
deadlines and requirements for financial disclosure reports under part 
2634 of this chapter and, in the event of noncompliance, taking 
appropriate action to address such noncompliance;
    (iii) Imposing late fees in appropriate cases involving untimely 
filing of public financial disclosure reports;
    (iv) Making referrals to the Inspector General or the Department of 
Justice in appropriate cases involving knowing and willful falsification 
of financial disclosure reports or knowing and willful failure to file 
financial disclosure reports;
    (v) Reviewing financial disclosure reports, with an emphasis on 
preventing conflicts of interest;
    (vi) Consulting, when necessary, with financial disclosure filers 
and their supervisors to evaluate potential conflicts of interest;
    (vii) Timely certifying financial disclosure reports and taking 
appropriate action with regard to financial disclosure reports that 
cannot be certified; and
    (viii) Using the information disclosed in financial disclosure 
reports to prevent and resolve potential conflicts of interest.
    (9) Assisting the agency in its enforcement of ethics laws and 
regulations when agency officials:
    (i) Make appropriate referrals to the Inspector General or the 
Department of Justice;
    (ii) Take disciplinary or corrective action; and
    (iii) Employ other means available to them.
    (10) Upon request of the Office of Inspector General, providing that 
office with ready and active assistance with regard to the 
interpretation and application of government ethics laws and 
regulations, as well as the procedural requirements of the ethics 
program;
    (11) Ensuring that the agency has a process for notifying the Office 
of Government Ethics upon referral, made pursuant to 28 U.S.C. 535, to 
the Department of Justice regarding a potential violation of a conflict 
of interest law, unless such notification would be prohibited by law;
    (12) Providing agency officials with advice on the applicability of 
government ethics laws and regulations to special Government employees;
    (13) Requiring timely compliance with ethics agreements, pursuant to 
part 2634, subpart H of this chapter;
    (14) Conducting ethics briefings for certain agency leaders, 
pursuant to Sec.  2638.305;
    (15) Prior to any Presidential election, preparing the agency's 
ethics program for a potential Presidential transition; and
    (16) Periodically evaluating the agency's ethics program and making 
recommendations to the agency regarding the resources available to the 
ethics program.
    (d) Appointment of an Alternate Designated Agency Ethics Official. 
Each agency head must appoint an Alternate Designated Agency Ethics 
Official (ADAEO). The ADAEO serves as the primary deputy to the DAEO in 
the administration of the agency's ethics program. Together, the DAEO 
and the

[[Page 672]]

ADAEO direct the daily activities of an agency's ethics program and 
coordinate with the Office of Government Ethics. The ADAEO must be an 
employee who has demonstrated the skills necessary to assist the DAEO in 
the administration of the agency's ethics program.
    (e) Program support by additional ethics officials and other 
individuals. Subject to approval by the DAEO or the agency head, an 
agency may designate additional ethics officials and other employees to 
assist the DAEO in carrying out the responsibilities of the ethics 
program, some of whom may be designated ``deputy ethics officials'' for 
purposes of parts 2635 and 2636 of this chapter. The agency is 
responsible for ensuring that these employees have the skills and 
expertise needed to perform their assigned duties related to the ethics 
program and must provide appropriate training to them for this purpose. 
Although the agency may appoint such officials as are necessary to 
assist in carrying out functions of the agency's ethics program, they 
will be subject to the direction of the DAEO with respect to the 
functions of the agency's ethics program described in this chapter. The 
DAEO retains authority to make final decisions regarding the agency's 
ethics program and its functions, subject only to the authority of the 
agency head and the Office of Government Ethics.
    (f) Ethics responsibilities that may be performed only by the DAEO 
or ADAEO. In addition to any items reserved for action by the DAEO or 
ADAEO in other parts of this chapter, only the DAEO or ADAEO may carry 
out the following responsibilities:
    (1) Request approval of supplemental agency regulations, pursuant to 
Sec.  2635.105 of this chapter;
    (2) Recommend a separate component designation, pursuant to Sec.  
2641.302(e) of this chapter;
    (3) Request approval of an alternative means for collecting certain 
public financial disclosure reports, pursuant to Sec.  2638.204(c);
    (4) Request determinations regarding public reporting requirements, 
pursuant to Sec. Sec.  2634.202(c), 2634.203, 2634.205, and 2634.304(f) 
of this chapter;
    (5) Make determinations, other than exceptions in individual cases, 
regarding the means the agency will use to collect public or 
confidential financial disclosure reports, pursuant to Sec. Sec.  
2638.204 and 2638.205;
    (6) Request an alternative procedure for filing confidential 
financial disclosure reports, pursuant to Sec.  2634.905(a) of this 
chapter;
    (7) Request a formal advisory opinion on behalf of the agency or a 
prospective, current, or former employee of that agency, pursuant to 
Sec.  2638.209(d); and
    (8) Request a certificate of divestiture, pursuant to Sec.  
2634.1005(b) of this chapter.



Sec.  2638.105  Government ethics responsibilities 
of lead human resources officials.

    (a) The lead human resources official, as defined in Sec.  2638.603, 
acting directly or through delegees, is responsible for:
    (1) Promptly notifying the DAEO of all appointments to positions 
that require incumbents to file public or confidential financial 
disclosure reports, with the notification occurring prior to appointment 
whenever practicable but in no case occurring more than 15 days after 
appointment; and
    (2) Promptly notifying the DAEO of terminations of employees in 
positions that require incumbents to file public financial disclosure 
reports, with the notification occurring prior to termination whenever 
practicable but in no case occurring more than 15 days after 
termination.
    (b) The lead human resources official may be assigned certain 
additional ethics responsibilities by the agency.
    (1) If an agency elects to assign such responsibilities to human 
resources officials, the lead human resources official is responsible 
for coordinating, to the extent necessary and practicable, with the DAEO 
to support the agency's ethics program;
    (2) If the lead human resources official is responsible for 
conducting ethics training pursuant to subpart C of this part, that 
official must follow the DAEO's directions regarding applicable 
requirements, procedures, and the

[[Page 673]]

qualifications of any presenters, consistent with the requirements of 
this chapter;
    (3) If the lead human resources official is responsible for issuing 
the required government ethics notices in written offers of employment, 
pursuant to Sec.  2638.303, or providing supervisory ethics notices, 
pursuant to Sec.  2638.306, that official must comply with any 
substantive and procedural requirements established by the DAEO, 
consistent with the requirements of this chapter; and
    (4) To the extent applicable, the lead human resources official is 
required to provide the DAEO with a written summary and confirmation 
regarding procedures for implementing certain requirements of subpart C 
of this part by January 15 each year, pursuant to Sec.  2638.310.
    (c) Nothing in this section prevents an agency head from delegating 
the duties described in paragraph (b) of this section to another agency 
official. In the event that an agency head delegates the duties 
described in paragraph (b) of this section to an agency official other 
than the lead human resources official, the requirements of paragraph 
(b) of this section will apply to that official.



Sec.  2638.106  Government ethics responsibilities of Inspectors General.

    An agency's Inspector General has authority to conduct 
investigations of suspected violations of conflict of interest laws and 
other government ethics laws and regulations. An Inspector General is 
responsible for giving due consideration to a request made pursuant to 
section 403 of the Ethics in Government Act of 1978 (the ``Act'') by the 
Office of Government Ethics for investigation of a possible violation of 
a government ethics law or regulation. Inspectors General provide the 
Office of Government Ethics notification of certain referrals to the 
Department of Justice, pursuant to Sec.  2638.206. Inspectors General 
may consult with the Director for legal guidance on the application of 
government ethics laws and regulations, except that the Director may not 
make any finding as to whether a provision of title 18, United States 
Code, or any criminal law of the United States outside of such title, 
has been or is being violated. Nothing in this section will be construed 
to limit or otherwise affect the authority of an Inspector General under 
section 6 of the Inspector General Act of 1978, as amended, including 
the authority under section 6(a)(2) to make such investigations and 
reports relating to the administration of the programs and operations of 
the applicable establishment as are, in the judgment of the Inspector 
General, necessary or desirable.



Sec.  2638.107  Government ethics responsibilities of agency heads.

    The agency head is responsible for, and will exercise personal 
leadership in, establishing and maintaining an effective agency ethics 
program and fostering an ethical culture in the agency. The agency head 
is also responsible for:
    (a) Designating employees to serve as the DAEO and ADAEO and 
notifying the Director in writing within 30 days of such designation;
    (b) Providing the DAEO with sufficient resources, including 
staffing, to sustain an effective ethics program;
    (c) Requiring agency officials to provide the DAEO with the 
information, support, and cooperation necessary for the accomplishment 
of the DAEO's responsibilities;
    (d) When action is warranted, enforcing government ethics laws and 
regulations through appropriate referrals to the Inspector General or 
the Department of Justice, investigations, and disciplinary or 
corrective action;
    (e) Requiring that violations of government ethics laws and 
regulations, or interference with the functioning of the agency ethics 
program, be appropriately considered in evaluating the performance of 
senior executives;
    (f) Requiring the Chief Information Officer and other appropriate 
agency officials to support the DAEO in using technology, to the extent 
practicable, to carry out ethics program functions such as delivering 
interactive training and tracking ethics program activities;
    (g) Requiring appropriate agency officials to submit to the Office 
of Government Ethics, by May 31 each year, required reports of travel 
accepted by the agency under 31 U.S.C. 1353 during

[[Page 674]]

the period from October 1 through March 31;
    (h) Requiring appropriate agency officials to submit to the Office 
of Government Ethics, by November 30 each year, required reports of 
travel accepted by the agency under 31 U.S.C. 1353 during the period 
from April 1 through September 30; and
    (i) Prior to any Presidential election, supporting the agency's 
ethics program in preparing for a Presidential transition.



Sec.  2638.108  Government ethics responsibilities of 
the Office of Government Ethics.

    The Office of Government Ethics is the supervising ethics office for 
the executive branch, providing overall leadership and oversight of the 
executive branch ethics program designed to prevent and resolve 
conflicts of interest. The Office of Government Ethics has the 
authorities and functions established in the Act.
    (a) Authorities and functions. Among other authorities and 
functions, the Office of Government Ethics has the authorities and 
functions described in this section.
    (1) The Office of Government Ethics issues regulations regarding 
conflicts of interest, standards of conduct, financial disclosure, 
requirements for agency ethics programs, and executive branch-wide 
systems of records for government ethics records. In issuing any such 
regulations, the Office of Government Ethics will, to the full extent 
required under the Act and any Executive order, coordinate with the 
Department of Justice and the Office of Personnel Management. When 
practicable, the Office of Government Ethics will also consult with a 
diverse group of selected agency ethics officials that represents a 
cross section of executive branch agencies to ascertain representative 
views of the DAEO community when developing substantive revisions to 
this chapter.
    (2) The Office of Government Ethics reviews and approves or 
disapproves agency supplemental ethics regulations.
    (3) The Office of Government Ethics issues formal advisory opinions 
to interested parties, pursuant to Sec.  2638.209. When developing a 
formal advisory opinion, the Office of Government Ethics will provide 
interested parties with an opportunity to comment.
    (4) The Office of Government Ethics issues guidance and informal 
advisory opinions, pursuant to Sec.  2638.208. When practicable, the 
Office of Government Ethics will consult with selected agency ethics 
officials to ascertain representative views of the DAEO community when 
developing guidance or informal advisory opinions that the Director 
determines to be of significant interest to a broad segment of the DAEO 
community.
    (5) The Office of Government Ethics supports agency ethics officials 
through such training, advice, and counseling as the Director deems 
necessary.
    (6) The Office of Government Ethics provides assistance in 
interpreting government ethics laws and regulations to executive branch 
Offices of Inspector General and other executive branch entities.
    (7) When practicable, the Office of Government Ethics convenes 
quarterly executive branch-wide meetings of key agency ethics officials. 
When the Office of Government Ethics convenes a major executive branch-
wide training event, the event normally serves in place of a quarterly 
meeting.
    (8) Pursuant to sections 402(b)(10) and 403 of the Act, the Director 
requires agencies to furnish the Office of Government Ethics with all 
information, reports, and records which the Director determines to be 
necessary for the performance of the Director's duties, except when such 
a release is prohibited by law.
    (9) The Office of Government Ethics conducts reviews of agency 
ethics programs in order to ensure their compliance with program 
requirements and to ensure their effectiveness in advancing the mission 
of the executive branch-wide ethics program. The Office of Government 
Ethics also conducts single-issue reviews of individual agencies, groups 
of agencies, or the executive branch ethics program as a whole.
    (10) The Office of Government Ethics reviews financial disclosure 
reports filed by employees, former employees, nominees, candidates for 
the Office of

[[Page 675]]

the President of the United States, and candidates for the Office of the 
Vice President of the United States who are required to file executive 
branch financial disclosure reports with the Office of Government Ethics 
pursuant to sections 101, 103(c), and 103(l) of the Act.
    (11) By January 15 each year, the Office of Government Ethics issues 
year-end reports to agencies regarding their compliance with the 
obligations, pursuant to section 103(c) of the Act and part 2634 of this 
chapter:
    (i) To timely transmit the annual public financial disclosure 
reports of certain high-level officials to the Office of Government 
Ethics; and
    (ii) To promptly submit such additional information as is necessary 
to obtain the Director's certification of the reports.
    (12) The Office of Government Ethics oversees the development of 
ethics agreements between agencies and Presidential nominees for 
positions in the executive branch requiring Senate confirmation and 
tracks compliance with such agreements. The Office of Government Ethics 
also maintains a guide that provides sample language for ethics 
agreements of Presidential nominees requiring Senate confirmation.
    (13) The Office of Government Ethics proactively assists 
Presidential Transition Teams in support of effective and efficient 
Presidential transitions and, to the extent practicable, may provide 
Presidential campaigns with advice and counsel on preparing for 
Presidential transitions.
    (14) The Office of Government Ethics orders such corrective action 
on the part of an agency as the Director deems necessary, pursuant to 
subpart D of this part, and such corrective action on the part of 
individual executive branch employees as the Director deems necessary, 
pursuant to subpart E of this part.
    (15) The Office of Government Ethics makes determinations regarding 
public financial disclosure requirements, pursuant to Sec. Sec.  
2634.202(c), 2634.203, 2634.205, and 2634.304(f) of this chapter.
    (16) The Office of Government Ethics conducts outreach to inform the 
public of matters related to the executive branch ethics program.
    (17) The Director and the Office of Government Ethics take such 
other actions as are necessary and appropriate to carry out their 
responsibilities under the Act.
    (b) Other authorities and functions. Nothing in this subpart or this 
chapter limits the authority of the Director or the Office of Government 
Ethics under the Act.



       Subpart B_Procedures of the Executive Branch Ethics Program



Sec.  2638.201  In general.

    This subpart establishes certain procedures of the executive branch 
ethics program. The procedures set forth in this subpart are in addition 
to procedures established elsewhere in this chapter and in the program 
advisories and other issuances of the Office of Government Ethics.



Sec.  2638.202  Furnishing records and information generally.

    Consistent with sections 402 and 403 of the Act, each agency must 
furnish to the Director all information and records in its possession 
which the Director deems necessary to the performance of the Director's 
duties, except to the extent prohibited by law. All such information and 
records must be provided to the Office of Government Ethics in a 
complete and timely manner.



Sec.  2638.203  Collection of public financial disclosure reports 
required to be submitted to the Office of Government Ethics.

    The public financial disclosure reports of individuals, other than 
candidates for elected office and elected officials, whose reports are 
required by section 103 of the Act to be transmitted to the Office of 
Government Ethics will be transmitted through the executive branch-wide 
electronic filing system of the Office of Government Ethics, except in 
cases in which the Director determines that using that system would be 
impracticable.



Sec.  2638.204  Collection of other public financial disclosure reports.

    This section establishes the procedure that the executive branch 
ethics program will use to collect, pursuant

[[Page 676]]

to section 101 of the Act, public financial disclosure reports of 
individuals whose reports are not required by section 103 of the Act to 
be transmitted to the Office of Government Ethics.
    (a) General. Subject to the exclusions and exceptions in paragraphs 
(b) through (d) of this section, the public financial disclosure reports 
required by part 2634 of this chapter will be collected through the 
executive branch-wide electronic filing system of the Office of 
Government Ethics.
    (b) Exclusions. This section does not apply to persons whose 
financial disclosure reports are covered by section 105(a)(1) or (2) of 
the Act, persons whose reports are required by section 103 of the Act to 
be transmitted to the Office of Government Ethics, or such other persons 
as the Director may exclude from the coverage of this section in the 
interest of the executive branch ethics program.
    (c) Authorization to collect public reports in paper format or 
through a legacy electronic filing system. Upon written request signed 
by the DAEO or ADAEO and by the Chief Information Officer, the Director 
of the Office of Government Ethics may authorize an agency in the 
interest of the executive branch ethics program to collect public 
financial disclosure reports in paper format or through a legacy 
electronic filing system other than the executive branch-wide electronic 
filing system of the Office of Government Ethics. The Director may 
rescind any such authorization based on a written determination that the 
rescission promotes the efficiency or effectiveness of the executive 
branch ethics program, but only after providing the agency with advance 
written notice and an opportunity to respond. The rescission will become 
effective on January 1 of a subsequent calendar year, but not less than 
24 months after notice is provided.
    (d) Exceptions in cases of extraordinary circumstances or temporary 
technical difficulties. Based on a determination that extraordinary 
circumstances or temporary technical difficulties make the use of an 
electronic filing system impractical, the DAEO or ADAEO may authorize an 
individual to file a public financial disclosure report using such 
alternate means of filing as are authorized in the program advisories of 
the Office of Government Ethics. To the extent practicable, agencies 
should limit the number of exceptions they grant under this paragraph 
each year. The Director may suspend an agency's authority to grant 
exceptions under this paragraph when the Director is concerned that the 
agency may be granting exceptions unnecessarily or in a manner that is 
inconsistent with Sec.  2638.601(c). Nothing in this paragraph limits 
the authority of the agency to excuse an employee from filing 
electronically to the extent necessary to provide reasonable 
accommodations under the Rehabilitation Act of 1973 (Pub. L. 93-112), as 
amended, or other applicable legal authority.



Sec.  2638.205  Collection of confidential financial disclosure reports.

    This section establishes the procedure that the executive branch 
will use to collect confidential financial disclosure reports from 
employees of the executive branch. To the extent not inconsistent with 
part 2634 of this chapter or with the approved forms, instructions, and 
other guidance of the Office of Government Ethics, the DAEO of each 
agency will determine the means by which the agency will collect 
confidential financial disclosure reports, including a determination as 
to whether the agency will collect such reports in either paper or 
electronic format. Nothing in this paragraph limits the authority of the 
agency to provide reasonable accommodations under the Rehabilitation Act 
of 1973 (Pub. L. 93-112), as amended, or other applicable legal 
authority.



Sec.  2638.206  Notice to the Director of certain referrals 
to the Department of Justice.

    This section establishes the requirement to provide the Director 
with notice of certain referrals.
    (a) Upon any referral made pursuant to 28 U.S.C. 535 to the 
Department of Justice regarding a potential violation of a conflict of 
interest law, the referring office must notify the Director of the 
referral by filing a completed OGE Form 202 with the Director, unless 
prohibited by law.

[[Page 677]]

    (b) In order to ensure effective coordination of this section, the 
Office of Government Ethics will obtain the concurrence of the 
Chairperson of the Council of the Inspectors General on Integrity and 
Efficiency before implementing substantive changes to the OGE Form 202.
    (c) If an agency's procedures authorize an official outside the 
Office of Inspector General to make a referral covered by this section, 
that official must provide the Inspector General and the DAEO with 
copies of documents provided to the Director pursuant this section, 
unless prohibited by law.



Sec.  2638.207  Annual report on the agency's ethics program.

    (a) By February 1 of each year, an agency must file with the Office 
of Government Ethics, pursuant to section 402(e)(1) of the Act, a report 
containing such information about the agency's ethics program as is 
requested by the Office of Government Ethics. The report must be filed 
electronically and in a manner consistent with the instructions of the 
Office of Government Ethics.
    (b) In order to facilitate the collection of required information by 
agencies, the Office of Government Ethics will provide agencies with 
advance notice regarding the contents of the report prior to the 
beginning of the reporting period for information that would be expected 
to be tracked over the course of the reporting period. Otherwise, it 
will provide as much notice as practicable, taking into consideration 
the effort required to collect the information.



Sec.  2638.208  Written guidance on the executive branch ethics program.

    This section describes several means by which the Office of 
Government Ethics provides agencies, employees, and the public with 
guidance regarding its legal interpretations, program requirements, and 
educational offerings. Normally, guidance documents are published on the 
official Web site of the Office of Government Ethics.
    (a) Legal advisories. The Office of Government Ethics issues legal 
advisories, which are memoranda regarding the interpretation of 
government ethics laws and regulations. They are intended primarily to 
provide education and notice to executive branch ethics officials; 
prospective, current, and former executive branch employees; and 
individuals who interact with the executive branch.
    (b) Program advisories. The Office of Government Ethics issues 
program advisories, which are memoranda regarding the requirements or 
procedures applicable to the executive branch ethics program and 
individual agency ethics programs. They are intended primarily to 
instruct agencies on uniform procedures for the executive branch ethics 
program.
    (c) Informal advisory opinions. Upon request or upon its own 
initiative, the Office of Government Ethics issues informal advisory 
opinions. Informal advisory opinions address subjects that in the 
opinion of the Director do not meet the criteria for issuance of formal 
advisory opinions. They are intended primarily to provide guidance to 
individuals and illustrate the application of government ethics laws and 
regulations to specific circumstances.



Sec.  2638.209  Formal advisory opinions.

    This section establishes the formal advisory opinion service of the 
Office of Government Ethics.
    (a) General. The Office of Government Ethics renders formal advisory 
opinions pursuant to section 402(b)(8) of the Act. A formal advisory 
opinion will be issued when the Director determines that the criteria 
and requirements established in this section are met.
    (b) Subjects of formal advisory opinions. Formal advisory opinions 
may be rendered on matters of general applicability or important matters 
of first impression concerning the application of the Act; Executive 
Order 12674 of April 12, 1989, as modified by Executive Order 12731 of 
October 17, 1990; 18 U.S.C. 202-209; and regulations interpreting or 
implementing these authorities. In determining whether to issue a formal 
advisory opinion, the Director will consider:
    (1) The unique nature of the question and its precedential value;
    (2) The potential number of employees throughout the government 
affected by the question;

[[Page 678]]

    (3) The frequency with which the question arises;
    (4) The likelihood or presence of inconsistent interpretations on 
the same question by different agencies; and
    (5) The interests of the executive branch ethics program.
    (c) Role of the formal advisory opinion service. The formal advisory 
opinion service of the Office of Government Ethics is not intended to 
replace the government ethics advice and counseling programs maintained 
by executive branch agencies. Normally, formal advisory opinions will 
not be issued with regard to the types of questions appropriately 
directed to an agency's DAEO. If a DAEO receives a request that the DAEO 
believes might appropriately be answered by the Office of Government 
Ethics through a formal advisory opinion, the DAEO will consult 
informally with the General Counsel of the Office of Government Ethics 
for instructions as to whether the matter should be referred to the 
Office of Government Ethics or retained by the agency for handling. 
Except in unusual circumstances, the Office of Government Ethics will 
not render formal advisory opinions with respect to hypothetical 
situations posed in requests for formal advisory opinions. At the 
discretion of the Director, however, the Office of Government Ethics may 
render formal advisory opinions on certain proposed activities or 
financial transactions.
    (d) Eligible persons. Any person may request an opinion with respect 
to a situation in which that person is directly involved, and an 
authorized representative may request an opinion on behalf of that 
person. However, an employee will normally be required to seek an 
opinion from the agency's DAEO before requesting a formal advisory 
opinion from the Office of Government Ethics. In addition, a DAEO may 
request a formal advisory opinion on behalf of the agency or a 
prospective, current, or former employee of that agency.
    (e) Submitting a request for a formal advisory opinion. The request 
must be submitted either by electronic mail addressed to 
[email protected] or by mail, through either the United States Postal 
Service or a private shipment service, to the Director of the Office of 
Government Ethics, Suite 500, 1201 New York Avenue NW., Washington, DC 
20005-3917. Personal deliveries will not be accepted.
    (f) Requirements for request. The request must include:
    (1) An express statement indicating that the submission is a request 
for a formal advisory opinion;
    (2) The name, street address, and telephone number of the person 
requesting the opinion;
    (3) The name, street address, and telephone number of any 
representative of that person;
    (4) All material facts necessary for the Director to render a 
complete and correct opinion;
    (5) The date of the request and the signature of either the 
requester or the requester's representative; and
    (6) In the case of a request signed by a representative, a written 
designation of the representative that is dated and signed by the 
requester.
    (g) Optional materials. At the election of the requester, the 
request may also include legal memoranda or other material relevant to 
the requested formal advisory opinion.
    (h) Additional information. The Director may request such additional 
information or documentation as the Director deems necessary to the 
development of a formal advisory opinion, from either the requester or 
other sources. If the requester or the requester's representative fails 
to cooperate with such a request, the Office of Government Ethics 
normally will close the matter without issuing a formal advisory 
opinion.
    (i) Comments from interested parties. The Office of Government 
Ethics will, to the extent practicable, solicit written comments on a 
request by posting a prominent notice on its official Web site. Any such 
notice will summarize relevant information in the request, provide 
interested parties 30 days to submit written comments, and include 
instructions for submitting written comments. Written comments submitted 
after the deadline will be considered only at the discretion of the 
Director.

[[Page 679]]

    (j) Consultation with the Department of Justice. Whenever the Office 
of the Government Ethics is considering rendering a formal advisory 
opinion, the Director will consult with the Office of Legal Counsel of 
the Department of Justice sufficiently in advance to afford that office 
an opportunity to review the matter. In addition, whenever a request 
involves an actual or apparent violation of any provision of 18 U.S.C. 
202-209, the Director will consult with the Criminal Division of the 
Department of Justice. If the Criminal Division determines that an 
investigation or prosecution will be undertaken, the Director will take 
no further action on the request, unless the Criminal Division makes a 
determination not to prosecute.
    (k) Consultation with other executive branch officials. The Director 
will consult with such other executive branch officials as the Director 
deems necessary to ensure thorough consideration of issues and 
information relevant to the request by the Office of Government Ethics. 
In the case of a request submitted by a prospective or current employee, 
the Director will share a copy of the request with the DAEO of the 
employee's agency.
    (l) Publication. The Office of Government Ethics will publish each 
formal advisory opinion on its official Web site. Prior to publishing a 
formal advisory opinion on its Web site, the Office of Government Ethics 
will delete information that identifies individuals involved and that is 
unnecessary to a complete understanding of the opinion.
    (m) Reliance on formal advisory opinions. (1) Any formal advisory 
opinion referred to in this section or any provisions or finding of a 
formal advisory opinion involving the application of the Act or the 
regulations promulgated pursuant to the Act or Executive order may be 
relied upon by:
    (i) Any person directly involved in the specific transaction or 
activity with respect to which such advisory opinion has been rendered; 
and
    (ii) Any person directly involved in any specific transaction or 
activity which is indistinguishable in all its material aspects from the 
transaction or activity with respect to which such formal advisory 
opinion was rendered.
    (2) Any person who relies upon any provision or finding of any 
formal advisory opinion in accordance with this paragraph and who acts 
in good faith in accordance with the provisions and findings of such 
opinion will not, as a result of such act, be subject to prosecution 
under 18 U.S.C. 202-209 or, when the opinion is exculpatory, be subject 
to any disciplinary action or civil action based upon legal authority 
cited in that opinion.



Sec.  2638.210  Presidential transition planning.

    Prior to any Presidential election, each agency has a responsibility 
to prepare its agency ethics program for a Presidential transition. Such 
preparations do not constitute support for a particular candidate and 
are not reflective of a belief regarding the likely outcome of the 
election; rather, they reflect an understanding that agencies are 
responsible for ensuring the continuity of governmental operations.
    (a) Preparing the ethics program for a transition. The agency head 
or the DAEO must, not later than 12 months before any Presidential 
election, evaluate whether the agency's ethics program has an adequate 
number of trained agency ethics officials to effectively support a 
Presidential transition.
    (b) Support by the Office of Government Ethics. In connection with 
any Presidential election, the Office of Government Ethics will:
    (1) Prior to the election, offer training opportunities for agency 
ethics officials on counseling departing noncareer appointees on post-
employment restrictions, reviewing financial disclosure reports, 
drafting ethics agreements for Presidential nominees, and counseling new 
noncareer appointees on conflict of interest laws and the Standards of 
Conduct; and
    (2) After the election, in the event of a Presidential transition, 
proactively assist the Presidential Transition Team in preparing for 
Presidential nominations, coordinate with agency ethics officials, and 
develop plans to implement new initiatives related to government ethics.

[[Page 680]]



                  Subpart C_Government Ethics Education



Sec.  2638.301  In general.

    Every agency must carry out a government ethics education program to 
teach employees how to identify government ethics issues and obtain 
assistance in complying with government ethics laws and regulations. An 
agency's failure to comply with any of the education or notice 
requirements set forth in this subpart does not exempt an employee from 
applicable government ethics requirements.



Sec.  2638.302  Definitions.

    The following definitions apply to the format of the various types 
of training required in this subpart. The agency may deviate from these 
prescribed formats to the extent necessary to provide reasonable 
accommodations to participants under the Rehabilitation Act of 1973 
(Pub. L. 93-112), as amended, or other applicable legal authority.
    (a) Live. A training presentation is considered live if the 
presenter personally communicates a substantial portion of the material 
at the same time as the employees being trained are receiving the 
material, even if part of the training is prerecorded or automated. The 
training may be delivered in person or through video or audio 
technology. The presenter must respond to questions posed during the 
training and provide instructions for participants to submit questions 
after the training.

    Example 1. An agency ethics official provides a presentation 
regarding government ethics and takes questions from participants who 
are assembled in a training room with the ethics official. At the end of 
the session, the ethics official provides contact information for 
participants who wish to pose additional questions. This training is 
considered live.
    Example 2. An agency ethics official provides a presentation to a 
group of employees in an auditorium. She presents an introduction and a 
brief overview of the material that will be covered in the training. She 
has participants watch a prerecorded video regarding government ethics. 
She stops the video frequently to elaborate on key concepts and offer 
participants opportunities to pose questions before resuming the video. 
At the end of the session, she recaps key concepts and answers 
additional questions. She then provides contact information for 
employees who wish to pose additional questions. This training is 
considered live.
    Example 3. The ethics official in Example 2 arranges for several 
Senate-confirmed public filers stationed outside of headquarters to 
participate in the live training via streaming video or telephone. For 
these remote participants, the ethics official also establishes a means 
for them to pose questions during the training, such as by emailing 
questions to her assistant. She also provides these remote participants 
with instructions for contacting the ethics office to pose additional 
questions after the training. This training is also considered live for 
the remote participants.
    Example 4. Agency ethics officials present training via a telephone 
conference. A few dozen agency employees dial into the conference call. 
The ethics officials take questions that are submitted by email and 
provide contact information for employees who wish to pose additional 
questions later. This training is considered live.
    Example 5. Several Senate-confirmed public filers required to 
complete live training in a particular year are stationed at various 
facilities throughout the country. For these filers, an ethics official 
schedules a 20-minute conference call, emails them copies of the written 
materials and a link to a 40-minute video on government ethics, and 
instructs them to view the video before the conference call. During the 
conference call, the ethics official recaps key concepts, takes 
questions, and provides his contact information in case participants 
have additional questions. The public filers then confirm by email that 
they watched the video and participated in the conference call. This 
training is considered live because a substantial portion of the 
training was live.

    (b) Interactive. A training presentation is considered interactive 
if the employee being trained is required to take an action with regard 
to the subject of the training. The required action must involve the 
employee's use of knowledge gained through the training and may not be 
limited to merely advancing from one section of the training to another 
section. Training that satisfies the requirements of paragraph (a) of 
this section will also satisfy the requirements of this paragraph.

    Example 1. An automated system allows employees to view a 
prerecorded video in which an agency ethics official provides training. 
At various points, the system poses questions and an employee selects 
from among a variety of possible answers. The system provides immediate 
feedback as to

[[Page 681]]

whether the selections are correct or incorrect. When the employee's 
selections are incorrect, the system displays the correct answer and 
explains the relevant concepts. This training is considered interactive.
    Example 2. If, instead of a video, the training described in Example 
1 were to include animated or written materials interspersed with 
questions and answers, the training would still be considered 
interactive.
    Example 3. A DAEO emails materials to employees who are permitted 
under part 2638 to complete interactive training. The materials include 
a written training presentation, questions, and space for employees to 
provide written responses. Employees are instructed to submit their 
answers to agency ethics officials, who provide individualized feedback. 
This training is considered interactive.
    Example 4. A DAEO emails materials to employees who are permitted 
under part 2638 to complete interactive training. The materials include 
a written training presentation, questions, and an answer key. The DAEO 
also distributes instructions for contacting an ethics official with any 
questions about the subjects covered. This training meets the minimum 
requirements to be considered interactive, even though the employees are 
not required to submit their answers for review and feedback. However, 
any DAEO who uses this minimally interactive format is encouraged to 
provide employees with other opportunities for more direct and 
personalized feedback.



Sec.  2638.303  Notice to prospective employees.

    Written offers of employment for positions covered by the Standards 
of Conduct must include the information required in this section to 
provide prospective employees with notice of the ethical obligations 
associated with the positions.
    (a) Content. The written offer must include, in either the body of 
the offer or an attachment:
    (1) A statement regarding the agency's commitment to government 
ethics;
    (2) Notice that the individual will be subject to the Standards of 
Conduct and the criminal conflict of interest statutes as an employee;
    (3) Contact information for an appropriate agency ethics office or 
an explanation of how to obtain additional information on applicable 
ethics requirements;
    (4) Where applicable, notice of the time frame for completing 
initial ethics training; and
    (5) Where applicable, a statement regarding financial disclosure 
requirements and an explanation that new entrant reports must be filed 
within 30 days of appointment.
    (b) DAEO's authority. At the election of the DAEO, the DAEO may 
specify the language that the agency will use in the notice required 
under paragraph (a) of this section or may approve, disapprove, or 
revise language drafted by other agency officials.
    (c) Tracking. Each agency must establish written procedures, which 
the DAEO must review each year, for issuing the notice required in this 
section. In the case of an agency with 1,000 or more employees, the DAEO 
must review any submissions under Sec.  2638.310 each year to confirm 
that the agency has implemented an appropriate process for meeting the 
requirements of this section.



Sec.  2638.304  Initial ethics training.

    Each new employee of the agency subject to the Standards of Conduct 
must complete initial ethics training that meets the requirements of 
this section.
    (a) Coverage. (1) This section applies to each employee appointed to 
a position in an agency who was not an employee of the agency 
immediately prior to that appointment. This section also permits 
Presidential nominees for Senate-confirmed positions to complete the 
initial ethics training prior to appointment.
    (2) The DAEO may exclude a non-supervisory position at or below the 
GS-8 grade level, or the equivalent, from the requirement to complete 
the training presentation described in paragraph (e)(1) of this section, 
provided that:
    (i) The DAEO signs a written determination that the duties of the 
position do not create a substantial likelihood that conflicts of 
interest will arise;
    (ii) The position does not meet the criteria set forth at Sec.  
2634.904 of this chapter; and
    (iii) The agency provides an employee described in paragraph (a)(1) 
of

[[Page 682]]

this section who is appointed to the position with the written materials 
required under paragraph (e)(2) of this section within 3 months of 
appointment.
    (b) Deadline. Except as provided in this paragraph, each new 
employee must complete initial ethics training within 3 months of 
appointment.
    (1) In the case of a Presidential nominee for a Senate-confirmed 
position, the nominee may complete the ethics training before or after 
appointment, but not later than 3 months after appointment.
    (2) In the case of a special Government employee who is reasonably 
expected to serve for no more than 60 days in a calendar year on a 
board, commission, or committee, the agency may provide the initial 
ethics training at any time before, or at the beginning of, the 
employee's first meeting of the board, commission, or committee.
    (c) Duration. The duration of the training must be sufficient for 
the agency to communicate the basic ethical obligations of federal 
service and to present the content described in paragraph (e) of this 
section.
    (d) Format. Employees covered by this section are required to 
complete interactive initial ethics training.
    (e) Content. The following content requirements apply to initial 
ethics training.
    (1) Training presentation. The training presentation must focus on 
government ethics laws and regulations that the DAEO deems appropriate 
for the employees participating in the training. The presentation must 
address concepts related to the following subjects:
    (i) Financial conflicts of interest;
    (ii) Impartiality;
    (iii) Misuse of position; and
    (iv) Gifts.
    (2) Written materials. In addition to the training presentation, the 
agency must provide the employee with either the following written 
materials or written instructions for accessing them:
    (i) The summary of the Standards of Conduct distributed by the 
Office of Government Ethics or an equivalent summary prepared by the 
agency;
    (ii) Provisions of any supplemental agency regulations that the DAEO 
determines to be relevant or a summary of those provisions;
    (iii) Such other written materials as the DAEO determines should be 
included; and
    (iv) Instructions for contacting the agency's ethics office.
    (f) Tracking. Each agency must establish written procedures, which 
the DAEO must review each year, for initial ethics training. In the case 
of an agency with 1,000 or more employees, the DAEO must review any 
submissions under Sec.  2638.310 each year to confirm that the agency 
has implemented an appropriate process for meeting the requirements of 
this section.

    Example 1. The DAEO of a large agency decides that the agency's 
ethics officials will conduct live initial ethics training for high-
level employees and certain procurement officials. The DAEO directs 
ethics officials to cover concepts related to financial conflicts of 
interest, impartiality, misuse of position, and gifts during the live 
training sessions. She also coordinates with the agency's Chief 
Information Officer to develop computerized training for all other new 
employees, and she directs her staff to include concepts related to 
financial conflicts of interest, impartiality, misuse of position, and 
gifts in the computerized training. The computerized training poses 
multiple-choice questions and provides feedback when employees answer 
the questions. At the DAEO's request, the agency's human resources 
officials distribute the required written materials as part of the 
onboarding procedures for new employees. The computerized training 
automatically tracks completion of the training, and the ethics 
officials use sign-in sheets to track participation in the live 
training. After the end of the calendar year, the DAEO reviews the 
materials submitted by the Office of Human Resources under Sec.  
2638.310 to confirm that the agency has implemented procedures for 
identifying new employees, distributing the written materials, and 
providing their initial ethics training. The agency's program for 
initial ethics training complies with the requirements of Sec.  
2638.304.
    Example 2. The agency head, the DAEO, and the lead human resources 
official of an agency with more than 1,000 employees have agreed that 
human resources officials will conduct initial ethics training. The DAEO 
provides the lead human resources official with written materials for 
use during the training, approves the content of the presentations, and 
trains the human resources officials who will conduct the initial ethics 
training. After the end of the calendar year,

[[Page 683]]

the lead human resources official provides the DAEO with a copy of the 
agency's procedures for identifying new employees and providing initial 
ethics training, and the lead human resources official confirms that 
there is a reasonable basis for concluding that the procedures have been 
implemented. The DAEO reviews these procedures and finds them 
satisfactory. The agency has complied with its tracking obligations with 
regard to initial ethics training.



Sec.  2638.305  Additional ethics briefing for certain agency leaders.

    In addition to other applicable requirements, each individual 
covered by this section must complete an ethics briefing to discuss the 
individual's immediate ethics obligations. Although the ethics briefing 
is separate from the initial ethics training, the agency may elect to 
combine the ethics briefing and the initial ethics training, provided 
that the requirements of both this section and Sec.  2638.304 are met.
    (a) Coverage. This section applies to Senate-confirmed Presidential 
nominees and appointees, except for those in positions identified in 
Sec.  2634.201(c)(2) of this chapter.
    (b) Deadline. The following deadlines apply to the ethics briefing.
    (1) Except as provided in paragraph (b)(2) of this section, each 
individual covered by this section must complete the ethics briefing 
after confirmation but not later than 15 days after appointment. The 
DAEO may grant an extension of the deadline not to exceed 30 days after 
appointment.
    (2)(i) In extraordinary circumstances, the DAEO may grant an 
additional extension to an individual by issuing a written determination 
that an extension is necessary. The determination must describe the 
extraordinary circumstances necessitating the extension, caution the 
individual to be vigilant for conflicts of interest created by any newly 
acquired financial interests, remind the individual to comply with any 
applicable ethics agreement, and be accompanied by a copy of the ethics 
agreement(s). The DAEO must send a copy of the determination to the 
individual before expiration of the time period established in paragraph 
(b)(1) of this section. The agency must conduct the briefing at the 
earliest practicable date thereafter. The written determination must be 
retained with the record of the individual's briefing.
    (ii) In the case of a special Government employee who is expected to 
serve for no more than 60 days in a calendar year on a board, 
commission, or committee, the agency must provide the ethics briefing 
before the first meeting of the board, commission, or committee.
    (c) Qualifications of presenter. The employee conducting the 
briefing must have knowledge of government ethics laws and regulations 
and must be qualified, as the DAEO deems appropriate, to answer the 
types of basic and advanced questions that are likely to arise regarding 
the required content.
    (d) Duration. The duration of the ethics briefing must be sufficient 
for the agency to communicate the required content.
    (e) Format. The ethics briefing must be conducted live.
    (f) Content. The ethics briefing must include the following 
activities.
    (1) If the individual acquired new financial interests reportable 
under section 102 of the Act after filing the nominee financial 
disclosure report, the agency ethics official must appropriately address 
the potential for conflicts of interest arising from those financial 
interests.
    (2) The agency ethics official must counsel the individual on the 
basic recusal obligation under 18 U.S.C. 208(a).
    (3) The agency ethics official must explain the recusal obligations 
and other commitments addressed in the individual's ethics agreement and 
ensure that the individual understands what is specifically required in 
order to comply with each of them, including any deadline for 
compliance. The ethics official and the individual must establish a 
process by which the recusals will be achieved, which may consist of a 
screening arrangement or, when the DAEO deems appropriate, vigilance on 
the part of the individual with regard to recusal obligations as they 
arise in particular matters.
    (4) The agency ethics official must provide the individual with 
instructions and the deadline for completing initial ethics training, 
unless the individual completes the initial ethics

[[Page 684]]

training either before or during the ethics briefing.
    (g) Tracking. The DAEO must maintain a record of the date of the 
ethics briefing for each current employee covered by this section.

    Example 1. A group of ethics officials conducts initial ethics 
training for six Senate-confirmed Presidential appointees within 15 days 
of their appointments. At the end of the training, ethics officials meet 
individually with each of the appointees to conduct their ethics 
briefings. The agency and the appointees have complied with both Sec.  
2638.304 and Sec.  2638.305.
    Example 2. The Senate confirms a nominee for a position as an 
Assistant Secretary. After the nominee's confirmation but several days 
before her appointment, the nominee completes her initial ethics 
briefing during a telephone call with an agency ethics official, and the 
ethics official records the date of the briefing. The agency and the 
nominee have complied with Sec.  2638.305. During the telephone call, 
the ethics official also discusses the content required for initial 
ethics training and provides the nominee with instructions for accessing 
the required written materials online. The agency and the nominee have 
also complied with Sec.  2638.304.



Sec.  2638.306  Notice to new supervisors.

    The agency must provide each employee upon initial appointment to a 
supervisory position with the written information required under this 
section.
    (a) Coverage. This requirement applies to each civilian employee who 
is required to receive training pursuant to 5 CFR 412.202(b).
    (b) Deadline. The agency must provide the written materials required 
by this section within 1 year of the employee's initial appointment to 
the supervisory position.
    (c) Written materials. The written materials must include contact 
information for the agency's ethics office and the text of Sec.  
2638.103. In addition, a copy of, a hyperlink to, or the address of a 
Web site containing the Principles of Ethical Conduct must be included, 
as well as such other information as the DAEO deems necessary for new 
supervisors.
    (d) Tracking. Each agency must establish written procedures, which 
the DAEO must review each year, for supervisory ethics notices. In the 
case of an agency with 1,000 or more employees, the DAEO must review any 
submissions under Sec.  2638.310 each year to confirm that the agency 
has implemented an appropriate process for meeting the requirements of 
this section.



Sec.  2638.307  Annual ethics training for confidential filers 
and certain other employees.

    Each calendar year, employees covered by this section must complete 
ethics training that meets the following requirements.
    (a) Coverage. In any calendar year, this section applies to the 
following employees, unless they are public filers:
    (1) Each employee who is required to file an annual confidential 
financial disclosure report pursuant to Sec.  2634.904 of this chapter 
during that calendar year, except an employee who ceases to be a 
confidential filer before the end of the calendar year;
    (2) Employees appointed by the President and employees of the 
Executive Office of the President;
    (3) Contracting officers described in 41 U.S.C. 2101; and
    (4) Other employees designated by the head of the agency.
    (b) Deadline. The employee must complete required annual ethics 
training before the end of the calendar year.
    (c) Duration. Agencies must provide employees with 1 hour of duty 
time to complete interactive training and review any written materials.
    (d) Format. The following formatting requirements apply.
    (1) Except as provided in paragraph (d)(2) of this section, 
employees covered by this section are required to complete interactive 
training.
    (2) If the DAEO determines that it is impracticable to provide 
interactive training to a special Government employee covered by this 
section who is expected to work no more than 60 days in a calendar year, 
or to an employee who is an officer in the uniformed services serving on 
active duty for no more 30 consecutive days, only the requirement to 
provide the written materials required by this section will apply to 
that employee each year. The DAEO

[[Page 685]]

may make the determination as to individual employees or a group of 
employees.
    (e) Content. The following content requirements apply to annual 
ethics training for employees covered by this section.
    (1) Training presentation. The training presentation must focus on 
government ethics laws and regulations that the DAEO deems appropriate 
for the employees participating in the training. The presentation must 
address concepts related to the following subjects:
    (i) Financial conflicts of interest;
    (ii) Impartiality;
    (iii) Misuse of position; and
    (iv) Gifts.
    (2) Written materials. In addition to the training presentation, the 
agency must provide the employee with either the following written 
materials or written instructions for accessing them:
    (i) The summary of the Standards of Conduct distributed by the 
Office of Government Ethics or an equivalent summary prepared by the 
agency;
    (ii) Provisions of any supplemental agency regulations that the DAEO 
determines to be relevant or a summary of those provisions;
    (iii) Such other written materials as the DAEO determines should be 
included; and
    (iv) Instructions for contacting the agency's ethics office.
    (f) Tracking. The following tracking requirements apply to training 
conducted pursuant to this section. An employee covered by this section 
must confirm in writing the completion of annual ethics training and 
must comply with any procedures established by the DAEO for such 
confirmation. If the DAEO or other presenter has knowledge that an 
employee completed required training, that individual may record the 
employee's completion of the training, in lieu of requiring the employee 
to provide written confirmation. In the case of an automated system that 
delivers interactive training, the DAEO may deem the employee to have 
confirmed the completion of the training if the system tracks completion 
automatically.



Sec.  2638.308  Annual ethics training for public filers.

    Each calendar year, public filers and other employees specified in 
this section must complete ethics training that meets the following 
requirements.
    (a) Coverage. In any calendar year, this section applies to each 
employee who is required to file an annual public financial disclosure 
report pursuant to Sec.  2634.201(a) of this chapter during that 
calendar year, except for an employee who ceases to be a public filer 
during that calendar year.
    (b) Deadline. A public filer must complete required annual ethics 
training before the end of the calendar year.
    (c) Qualifications of presenter. The employee conducting any live 
training presentation must have knowledge of government ethics laws and 
regulations and must be qualified, as the DAEO deems appropriate, to 
answer the types of basic and advanced questions that are likely to 
arise regarding the required content.
    (d) Duration. The duration of training must be sufficient for the 
agency to communicate the required content, but at least 1 hour. 
Agencies must provide employees with 1 hour of duty time to complete 
interactive training and review any written materials.
    (e) Format. The annual ethics training must meet the following 
formatting requirements.
    (1) Employees whose pay is set at Level I or Level II of the 
Executive Schedule must complete 1 hour of live training each year, 
unless a matter of vital national interest makes it necessary for an 
employee to complete interactive training in lieu of live training in a 
particular year.
    (2) Other civilian employees identified in section 103(c) of the Act 
who are stationed in the United States must complete live training once 
every 2 years and interactive training in alternate years. In 
extraordinary circumstances, the DAEO may grant written authorization 
for an employee who is required to complete live training in a 
particular year to complete interactive training.
    (3) All other employees covered by this section must complete 
interactive training.

[[Page 686]]

    (f) Content. The following content requirements apply to annual 
ethics training for employees covered by this section.
    (1) Training presentation. The training presentation must focus on 
government ethics laws and regulations that the DAEO deems appropriate 
for the employees participating in the training. The presentation must 
address concepts related to the following subjects:
    (i) Financial conflicts of interest;
    (ii) Impartiality;
    (iii) Misuse of position; and
    (iv) Gifts.
    (2) Written materials. In addition to the training presentation, the 
agency must provide the employee with either the following written 
materials or written instructions for accessing them:
    (i) The summary of the Standards of Conduct distributed by the 
Office of Government Ethics or an equivalent summary prepared by the 
agency;
    (ii) Provisions of any supplemental agency regulations that the DAEO 
determines to be relevant or a summary of those provisions;
    (iii) Such other written materials as the DAEO determines should be 
included; and
    (iv) Instructions for contacting the agency's ethics office.
    (g) Tracking. The following tracking requirements apply to training 
conducted pursuant to this section. An employee covered by this section 
must confirm in writing the completion of annual ethics training and 
must comply with any procedures established by the DAEO for such 
confirmation. If the DAEO or other presenter has knowledge that an 
employee completed required training, that individual may record the 
employee's completion of the training, in lieu of requiring the employee 
to provide written confirmation. In the case of an automated system that 
delivers interactive training, the DAEO may deem the employee to have 
confirmed the completion of the training if the system tracks completion 
automatically.

    Example 1. The DAEO of a small agency distributes the written 
materials for annual training by emailing a link to a Web site that 
contains the required materials. He then conducts a live training 
session for all of the agency's public filers. He spends the first 15 
minutes of the training addressing concepts related to financial 
conflicts of interest, impartiality, misuse of position, and gifts. 
Because several participants are published authors, he spends the next 
15 minutes covering restrictions on compensation for speaking, teaching, 
and writing. He then spends 20 minutes discussing hypothetical examples 
related to the work of the agency and 10 minutes answering questions. 
The training meets the content requirements of this section. Further, 
because live training satisfies the requirements for interactive 
training, this training meets the formatting requirements for all public 
filers, including those required to complete interactive training.
    Example 2. An ethics official personally appears at each monthly 
senior staff meeting to conduct a 10-minute training session on 
government ethics. Across the year, he addresses concepts related to 
financial conflicts of interest, impartiality, misuse of position, 
gifts, and other subjects related to government ethics laws and 
regulations, although no one session covers all of these subjects. 
During each meeting, he distributes a one-page handout summarizing the 
key points of his presentation, takes questions, and provides contact 
information for employees who wish to pose additional questions. He 
records the names of the public filers in attendance at each meeting. 
Once a year, he emails them the required written materials, as well as 
the one-page summaries. While many of these public filers do not attend 
all 12 meetings, each attends at least six sessions during the calendar 
year. Although some of the filers missed the sessions that addressed 
gifts, they all received the handout summarizing the presentation on 
gifts. The training satisfies the annual training requirement for the 
public filers who attended the meetings, including those required to 
complete interactive training. Moreover, because the ethics official 
recorded the names of the public filers who attended, the filers are not 
required to separately confirm their completion of the training.
    Example 3. One of the Presidentially appointed, Senate-confirmed 
employees in Example 2 was required to complete live training that year. 
Because she attended only four senior staff meetings during the year, 
she completed only 40 minutes of annual ethics training. The DAEO allows 
the employee to spend 20 minutes reviewing the handouts and written 
materials and send an email confirming that she completed her review 
before the end of the calendar year. This arrangement satisfies the 
requirements for live annual training because a substantial portion of 
the training was live.

[[Page 687]]



Sec.  2638.309  Agency-specific ethics education requirements.

    The DAEO may establish additional requirements for the agency's 
ethics education program, with or without a supplemental agency 
regulation under Sec.  2635.105 of this chapter.
    (a) Groups of employees. The DAEO may establish specific government 
ethics training requirements for groups of agency employees.
    (b) Employees performing ethics duties. The DAEO has an obligation 
to ensure that employees performing assigned ethics duties have the 
necessary expertise with regard to government ethics laws and 
regulations. If the DAEO determines that employees engaged in any 
activities described in Sec. Sec.  2638.104 and 2638.105 require 
training, the DAEO may establish specific training requirements for them 
either as a group or individually.
    (c) Procedures. The DAEO may establish specific procedures for 
training that the DAEO requires under paragraph (a) or (b) of this 
section, including any certification procedures the DAEO deems 
necessary. Agency employees must comply with the requirements and 
procedures that the DAEO establishes under this section.



Sec.  2638.310  Coordinating the agency's ethics education program.

    In an agency with 1,000 or more employees, any office that is not 
under the supervision of the DAEO but has been delegated responsibility 
for issuing notices, pursuant to Sec.  2638.303 or Sec.  2638.306, or 
conducting training, pursuant to Sec.  2638.304, must submit the 
following materials to the DAEO by January 15 each year:
    (a) A written summary of procedures that office has established to 
ensure compliance with this subpart; and
    (b) Written confirmation that there is a reasonable basis for 
concluding that the procedures have been implemented.



     Subpart D_Correction of Executive Branch Agency Ethics Programs



Sec.  2638.401  In general.

    The Office of Government Ethics has authority, pursuant to sections 
402(b)(9) and 402(f)(1) of the Act, to take the action described in this 
subpart with respect to deficiencies in agency ethics programs. Agency 
ethics programs comprise the matters described in this subchapter for 
which agencies are responsible.



Sec.  2638.402  Informal action.

    If the Director has information indicating that an agency ethics 
program is not compliant with the requirements set forth in applicable 
government ethics laws and regulations, the Director is authorized to 
take any or all of the measures described in this section. The Director 
may:
    (a) Contact agency ethics officials informally to identify the 
relevant issues and resolve them expeditiously;
    (b) Issue a notice of deficiency to make the agency aware of its 
possible noncompliance with an applicable government ethics law or 
regulation;
    (c) Require the agency to respond in writing to the notice of 
deficiency;
    (d) Require the agency to provide such additional information or 
documentation as the Director determines to be necessary;
    (e) Issue an initial decision with findings as to the existence of a 
deficiency in the agency's ethics program;
    (f) Require the agency to correct or, at the Director's discretion, 
satisfactorily mitigate any deficiency in its ethics program;
    (g) Provide the agency with guidance on measures that would correct 
or satisfactorily mitigate any program deficiency;
    (h) Monitor the agency's efforts to correct or satisfactorily 
mitigate the deficiency and require the agency to submit progress 
reports; or
    (i) Take other actions authorized under the Act to resolve the 
matter informally.



Sec.  2638.403  Formal action.

    If the Director determines that informal action, pursuant to Sec.  
2638.402, has

[[Page 688]]

not produced an acceptable resolution, the Director may issue an order 
directing the agency to take specific corrective action.
    (a) Before issuing such an order, the Director will:
    (1) Advise the agency in writing of the deficiency in its ethics 
program;
    (2) Describe the action that the Director is considering taking;
    (3) Provide the agency with 30 days to respond in writing; and
    (4) Consider any timely written response submitted by the agency.
    (b) If the Director is satisfied with the agency's response, no 
order will be issued.
    (c) If the Director decides to issue an order, the order will 
describe the corrective action to be taken.
    (d) If the agency does not comply with the order within a reasonable 
time, the Director will:
    (1) Notify the head of the agency of intent to furnish a report of 
noncompliance to the President and the Congress;
    (2) Provide the agency 14 calendar days within which to furnish 
written comments for submission with the report of noncompliance; and
    (3) Report the agency's noncompliance to the President and to the 
Congress.



       Subpart E_Corrective Action Involving Individual Employees



Sec.  2638.501  In general.

    This subpart addresses the Director's limited authority, pursuant to 
sections 402(b)(9) and 402(f)(2) of the Act, to take certain actions 
with regard to individual employees if the Director suspects a violation 
of a noncriminal government ethics law or regulation. Section 402(f)(5) 
of the Act prohibits the Director from making any finding regarding a 
violation of a criminal law. Therefore, the Director will refer possible 
criminal violations to an Inspector General or the Department of 
Justice, pursuant to Sec.  2638.502. If, however, the Director is 
concerned about a possible violation of a noncriminal government ethics 
law or regulation by an employee, the Director may notify the employee's 
agency, pursuant to Sec.  2638.503. In the rare circumstance that an 
agency does not address a matter after receiving this notice, the 
Director may use the procedures in Sec.  2638.504 to issue a nonbinding 
recommendation of a disciplinary action or an order to terminate an 
ongoing violation. Nothing in this subpart relieves an agency of its 
primary responsibility to ensure compliance with government ethics laws 
and regulations.



Sec.  2638.502  Violations of criminal provisions related to government ethics.

    Consistent with section 402(f) of the Act, nothing in this subpart 
authorizes the Director or any agency official to make a finding as to 
whether a provision of title 18, United States Code, or any other 
criminal law of the United States outside of such title, has been or is 
being violated. If the Director has information regarding the violation 
of a criminal law by an individual employee, the Director will notify an 
Inspector General or the Department of Justice.



Sec.  2638.503  Recommendations and advice to employees and agencies.

    The Director may make such recommendations and provide such advice 
to employees or agencies as the Director deems necessary to ensure 
compliance with applicable government ethics laws and regulations. The 
Director's authority under this section includes the authority to 
communicate with agency heads and other officials regarding government 
ethics and to recommend that the agency investigate a matter or consider 
taking disciplinary or corrective action against individual employees.



Sec.  2638.504  Violations of noncriminal provisions 
related to government ethics.

    In the rare case that consultations made pursuant to Sec.  2638.503 
have not resolved the matter, the Director may use the procedures in 
this section if the Director has reason to believe that an employee is 
violating, or has violated, any noncriminal government ethics law or 
regulation. Any proceedings pursuant to this section will be conducted 
in accordance with applicable national security requirements.

[[Page 689]]

    (a) Agency investigation. The Director may recommend that the agency 
head or the Inspector General conduct an investigation. If the Director 
determines thereafter that an agency head has not conducted an 
investigation within a reasonable time, the Director will notify the 
President.
    (b) Initiating further proceedings. Following an investigation 
pursuant to paragraph (a) of this section or a determination by the 
Director that an investigation has not been conducted within a 
reasonable time, the Director may either initiate further proceedings 
under this section or close the involvement of the Office of Government 
Ethics in the matter.
    (1) If the Director initiates further proceedings, the Director will 
notify the employee in writing of the suspected violation, the right to 
respond orally and in writing, and the right to be represented. The 
notice will include instructions for submitting a written response and 
requesting an opportunity to present an oral response, copies of this 
section and sections 401-403 of the Act, and copies of the material 
relied upon by the Office of Government Ethics.
    (2) If the Director is considering issuing an order directing the 
employee to take specific action to terminate an ongoing violation, the 
Director will also provide notice of the potential issuance of an order 
and the right to request a hearing, pursuant to paragraph (f) of this 
section.
    (c) Employee's response. The employee will be provided with a 
reasonable opportunity to present an oral response to the General 
Counsel of the Office of Government Ethics within 30 calendar days of 
the date of the employee's receipt of the notice described in paragraph 
(b) of this section. If the employee fails to timely request an 
opportunity to present an oral response or fails to cooperate with 
reasonable efforts to schedule the oral response, only a timely 
submitted written response will be considered.
    (d) General Counsel's recommendation. After affording the employee 
30 calendar days to respond, the General Counsel will provide the 
Director with a written recommendation as to the action warranted by the 
circumstances. However, if the employee has timely exercised an 
applicable right to request a hearing pursuant to paragraph (g) of this 
section, the provisions of paragraph (g) will apply instead of the 
provisions of this paragraph.
    (1) If the employee has not had an opportunity to comment on any 
newly obtained material relied upon for the recommendation, the General 
Counsel will provide the employee with an opportunity to comment on that 
material before submitting the recommendation to the Director.
    (2) The recommendation will include findings of fact and a 
conclusion as to whether it is more likely than not that a violation has 
occurred. The General Counsel will provide the Director with copies of 
the material relied upon for the recommendation, including any timely 
written response and a transcript of any oral response of the employee.
    (3) In the case of an ongoing violation, the General Counsel may 
recommend an order directing the employee to take specific action to 
terminate the violation, provided that the employee has been afforded 
the notice required under paragraph (f) of this section and an 
opportunity for a hearing.
    (e) Decisions and orders of the Director. After reviewing the 
recommendation of the General Counsel pursuant to paragraph (d) of this 
section or, in the event of a hearing, the recommendation of the 
administrative law judge pursuant to paragraph (g)(7) of this section, 
the Director may issue a decision and, if applicable, an order. The 
authority of the Director to issue decisions and orders under this 
paragraph may not be delegated to any other official. The Director's 
decision will include written findings and conclusions with respect to 
all material issues and will be supported by substantial evidence of 
record.
    (1) A copy of the decision and order will be furnished to the 
employee and, if applicable, the employee's representative. Copies will 
also be provided to the DAEO and the head of the agency or, where the 
employee is the head of an agency, to the President. The Director's 
decision and any order will be posted on the official Web site of the

[[Page 690]]

Office of Government Ethics, except to the extent prohibited by law.
    (2) The Director's decision may include a nonbinding recommendation 
that appropriate disciplinary or corrective action be taken against the 
employee. If the agency head does not take the action recommended within 
a reasonable period of time, the Director may notify the President.
    (3) In the case of an ongoing violation, the Director may issue an 
order directing the employee to take specific action to terminate the 
violation, provided that the employee has been afforded the notice 
required under paragraph (f) of this section and an opportunity for a 
hearing.
    (f) Notice of the right to request a hearing regarding an order to 
terminate a violation. Before an order to terminate an ongoing violation 
may be recommended or issued under this section, the employee must be 
provided with written notice of the potential issuance of an order, the 
right to request a hearing, and instructions for requesting a hearing.
    (1) If the employee submits a written request for a hearing within 
30 calendar days of the date of the employee's receipt of the notice, 
the hearing will be conducted pursuant to paragraph (g) of this section;
    (2) If the employee does not submit a written request for a hearing 
within 30 days of receipt of the notice, the General Counsel may issue a 
recommendation, pursuant to paragraph (d) of this section, in lieu of a 
hearing after first considering any timely response of the employee, 
pursuant to paragraph (c) of this section; and
    (3) If the employee timely submits written requests for both a 
hearing, pursuant to paragraph (f) of this section, and an oral 
response, pursuant to paragraph (c) of this section, only a hearing will 
be conducted, pursuant to paragraph (g) of this section.
    (g) Hearings. If, after receiving a notice required pursuant to 
paragraph (f) of this section, the employee submits a timely request for 
a hearing, an administrative law judge who has been appointed under 5 
U.S.C. 3105 will serve as the hearing officer, and the following 
procedures will apply to the hearing. An employee of the Office of 
Government Ethics will be assigned to provide the administrative law 
judge with logistical support in connection with the hearing.
    (1) The General Counsel of the Office of Government Ethics will 
designate attorneys to present evidence and argument at the hearing in 
support of a possible finding that the employee is engaging in an 
ongoing violation. The General Counsel will serve as Advisor to the 
Director and will not, in connection with the presentation of evidence 
and argument against the employee, direct or supervise these attorneys. 
Any attorney who presents evidence, argument, or testimony against the 
employee at the hearing will be recused from assisting the Director or 
the General Counsel in connection with the contemplated order.
    (2) The administrative law judge will issue written instructions for 
the conduct of the hearing, including deadlines for submitting lists of 
proposed witnesses and exchanging copies of documentary evidence. The 
hearing will be conducted informally, and the administrative law judge 
may make such rulings as are necessary to ensure that the hearing is 
conducted equitably and expeditiously.
    (3) The parties to the hearing will be the employee and the 
attorneys of the Office of Government Ethics designated to present 
evidence and arguments supporting a finding that a violation is ongoing, 
respectively. The parties will not engage in ex parte communications 
with the administrative law judge, unless the administrative law judge 
authorizes limited ex parte communications regarding scheduling and 
logistical matters.
    (4) If either party requests assistance in securing the appearance 
of an approved witness who is an employee, the administrative law judge 
may, at his or her discretion, notify the General Counsel, who will 
assist the Director in requesting that the head of the employing agency 
produce the witness, pursuant to section 403(a)(1) of the Act. The 
Director will notify the President if an agency head fails to produce 
the approved witness.
    (5) The hearing will be conducted on the record and witnesses will 
be placed

[[Page 691]]

under oath and subject to cross-examination. Following the hearing, the 
administrative law judge will provide each party with a copy of the 
hearing transcript.
    (6) Hearings will generally be open to the public, but the 
administrative law judge may issue a written order closing, in whole or 
in part, the hearing in the best interests of national security, the 
employee, a witness, or an affected person. The order will set forth the 
reasons for closing the hearing and, along with any objection to the 
order by a party, will be made a part of the record. Unless specifically 
excluded by the administrative law judge, the DAEO of the employee's 
agency will be permitted to attend a closed hearing. If the 
administrative law judge denies a request by a party or an affected 
person to close the hearing, in whole or in part, that denial will be 
immediately appealable by the requester. The requester must file a 
notice of appeal with the Director within 3 working days. In the event 
that such a notice is filed, the hearing will be held in abeyance 
pending resolution of the appeal. The notice of appeal, exclusive of 
attachments, may not exceed 10 pages of double-spaced type. The Director 
will afford the parties and, if not a party, the requester the 
opportunity to make an oral presentation in person or via 
telecommunications technology within 3 working days of the filing of the 
appeal. The oral presentation will be conducted on the record. If the 
appellant or either party is unavailable to participate in the oral 
presentation within the 3-working-day period, the Director will convene 
the oral presentation without that party or affected person. The 
Director will issue a decision on the appeal within 3 working days of 
the oral presentation. If the Director is unavailable during this time 
period, the Director may designate a senior executive of the Office of 
Government Ethics to hear the oral presentation and decide the appeal. 
The notice of appeal, the record of the oral presentation, the decision 
on the appeal, and any other document considered by the Director or the 
Director's designee in connection with the appeal will be made a part of 
the record of the hearing.
    (7) After closing the record, the administrative law judge will 
certify the entire record to the Director for decision. When so 
certifying the record, the administrative law judge will make a 
recommended decision, which will include his or her written findings of 
fact and conclusions of law with respect to material issues. After 
considering the certified record, the Director may issue a decision and 
an order, pursuant to paragraph (e) of this section.
    (h) Dismissal. The Director may dismiss a proceeding under this 
section at any time, without a finding as to the alleged violation, upon 
a finding that:
    (1) The employee or the agency has taken appropriate action to 
address the Director's concerns;
    (2) The employee has undertaken, or agreed in writing to undertake, 
measures the Director deems satisfactory; or
    (3) A question has arisen involving the potential application of a 
criminal law.
    (i) Notice procedure. The notices required by paragraphs (b)(1) and 
(f) of this section may be delivered by U.S. mail, electronic mail, or 
personal delivery. There will be a rebuttable presumption that notice 
sent by U.S. mail is received within 5 working days. If the agency does 
not promptly provide the Office of Government Ethics with an employee's 
contact information upon request, the notice may be sent to the agency's 
DAEO, who will bear responsibility for promptly delivering that notice 
to the employee and promptly notifying the Director after its delivery.



                      Subpart F_General Provisions



Sec.  2638.601  Authority and purpose.

    (a) Authority. The regulations of this part are issued pursuant to 
the authority of titles I and IV of the Ethics in Government Act of 1978 
(Pub. L. 95-521, as amended) (``the Act'').
    (b) Purpose. These executive branch regulations supplement and 
implement titles I, IV and V of the Act and set forth more specifically 
certain procedures provided in those titles, and furnish examples, where 
appropriate.

[[Page 692]]

    (c) Agency authority. Subject only to the authority of the Office of 
Government Ethics as the supervising ethics office for the executive 
branch, all authority conferred on agencies in this subchapter B of 
chapter XVI of title 5 of the Code of Federal Regulations is sole and 
exclusive authority.



Sec.  2638.602  Agency regulations.

    Each agency may, subject to the prior approval of the Office of 
Government Ethics, issue regulations not inconsistent with this part and 
this subchapter, using the procedures set forth in Sec.  2635.105 of 
this chapter.



Sec.  2638.603  Definitions.

    For the purposes of this part:
    Act means the Ethics in Government Act of 1978 (Pub. L. 95-521, as 
amended).
    ADAEO or Alternate Designated Agency Ethics Official means an 
officer or employee who is designated by the head of the agency as the 
primary deputy to the DAEO in coordinating and managing the agency's 
ethics program in accordance with the provisions of Sec.  2638.104.
    Agency or agencies means any executive department, military 
department, Government corporation, independent establishment, board, 
commission, or agency, including the United States Postal Service and 
Postal Regulatory Commission, of the executive branch.
    Agency head means the head of an agency. In the case of a 
department, it means the Secretary of the department. In the case of a 
board or commission, it means the Chair of the board or commission.
    Confidential filer means an employee who is required to file a 
confidential financial disclosure report pursuant to Sec.  2634.904 of 
this chapter.
    Conflict of interest laws means 18 U.S.C. 202-209, and conflict of 
interest law means any provision of 18 U.S.C. 202-209.
    Corrective action means any action necessary to remedy a past 
violation or prevent a continuing violation of this part, including but 
not limited to restitution, change of assignment, disqualification, 
divestiture, termination of an activity, waiver, the creation of a 
qualified diversified or blind trust, or counseling.
    DAEO or Designated Agency Ethics Official means an officer or 
employee who is designated by the head of the agency to coordinate and 
manage the agency's ethics program in accordance with the provisions of 
Sec.  2638.104.
    Department means a department of the executive branch.
    Director means the Director of the Office of Government Ethics.
    Disciplinary action means those disciplinary actions referred to in 
Office of Personnel Management regulations and instructions implementing 
provisions of title 5 of the United States Code or provided for in 
comparable provisions applicable to employees not subject to title 5.
    Employee means any officer or employee of an agency, including a 
special Government employee. It includes officers but not enlisted 
members of the uniformed services. It includes 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. It does not include the 
President or Vice President. Status as an employee is unaffected by pay 
or leave status or, in the case of a special Government employee, by the 
fact that the individual does not perform official duties on a given 
day.
    Executive branch includes each executive agency as defined in 5 
U.S.C. 105 and any other entity or administrative unit in the executive 
branch. However, it does not include any agency, entity, office, or 
commission that is defined by or referred to in 5 U.S.C. app. sections 
109(8)-(11) of the Act as within the judicial or legislative branch.
    Government ethics laws and regulations include, among other 
applicable authorities, the provisions related to government ethics or 
financial disclosure of the following authorities:
    (1) Chapter 11 of title 18 of the United States Code;
    (2) The Ethics in Government Act of 1978 (Pub. L. 95-521, as 
amended);
    (3) The Stop Trading on Congressional Knowledge Act of 2012 (STOCK 
Act) (Pub. L. 112-105, as amended);
    (4) Executive Order 12674 (Apr. 12, 1989) as amended by Executive 
Order 12731 (Oct. 17, 1990); and
    (5) Subchapter B of this chapter.

[[Page 693]]

    Lead human resources official means the agency's chief policy 
advisor on all human resources management issues who is charged with 
selecting, developing, training, and managing a high-quality, productive 
workforce. For agencies covered by the Chief Human Capital Officers Act 
of 2002 (Pub. L. 107-296), the Chief Human Capital Officer is the lead 
human resources official.
    Person includes an individual, partnership, corporation, 
association, government agency, or public or private organization.
    Principles of Ethical Conduct means the collection of general 
principles set forth in Sec.  2635.101(b) of this chapter.
    Public filer means an employee, former employee, or nominee who is 
required to file a public financial disclosure report, pursuant to Sec.  
2634.202 of this chapter.
    Senior executive means a career or noncareer appointee in the Senior 
Executive Service or equivalent federal executive service. It also 
includes employees in Senior Level (SL) and Senior Technical (ST) 
positions. In addition, it includes equivalent positions in agencies 
that do not have a federal executive service.
    Special Government employee means an employee who meets the 
definition at 18 U.S.C. 202(a). The term does not relate to a specific 
category of employee, and 18 U.S.C. 202(a) is not an appointment 
authority. The term describes individuals appointed to positions in the 
executive branch, the legislative branch, any independent agency of the 
United States, or the District of Columbia who are covered less 
expansively by conflict of interest laws at 18 U.S.C. 202-209. As a 
general matter, an individual appointed to a position in the legislative 
or executive branch who is expected to serve for 130 days or less during 
any period of 365 consecutive days is characterized as a special 
Government employee. The appointment of special Government employees is 
not administered or overseen by the Office of Government Ethics but is 
carried out under legal authorities administered by the Office of 
Personnel Management and other agencies.
    Standards of Conduct means the Standards of Ethical Conduct for 
Employees of the Executive Branch set forth in part 2635 of this 
chapter.



Sec.  2638.604  Key program dates.

    Except as amended by program advisories of the Office of Government 
Ethics, the following list summarizes key deadlines of the executive 
branch ethics program:
    (a) January 15 is the deadline for:
    (1) The Office of Government Ethics to issue its year-end status 
reports, pursuant to Sec.  2638.108(a)(11); and
    (2) In an agency with 1,000 or more employees, any office not under 
the supervision of the DAEO that provides notices or training required 
under subpart C of this part to provide a written summary and 
confirmation, pursuant to Sec.  2638.310.
    (b) February 1 is the deadline for the DAEO to submit the annual 
report on the agency's ethics program, pursuant to Sec.  2638.207.
    (c) February 15 is the deadline for employees to file annual 
confidential financial disclosure reports, pursuant to Sec.  2634.903(a) 
of this chapter.
    (d) May 15 is the deadline for employees to file annual public 
financial disclosure reports, pursuant to Sec.  2634.201(a) of this 
chapter.
    (e) May 31 is the deadline for the agency to submit required travel 
reports to the Office of Government Ethics, pursuant to Sec.  
2638.107(g).
    (f) July 1 is the deadline for the DAEO to submit a letter stating 
whether components currently designated should remain designated, 
pursuant to Sec.  2641.302(e)(2) of this chapter.
    (g) November 30 is the deadline for the agency to submit required 
travel reports to the Office of Government Ethics, pursuant to Sec.  
2638.107(h).
    (h) December 31 is the deadline for completion of annual ethics 
training for employees covered by Sec. Sec.  2638.307 and 2638.308.
    (i) By the deadline specified in the request is the deadline, 
pursuant to Sec.  2638.202, for submission of all documents and 
information requested by the Office of Government Ethics in connection 
with a review of the agency's ethics program, except when the submission 
of the information or reports would be prohibited by law.

[[Page 694]]

    (j) Prior to appointment whenever practicable but in no case more 
than 15 days after appointment is the deadline, pursuant to Sec.  
2638.105(a)(1), for the lead human resources official to notify the DAEO 
that the agency has appointed a confidential or public financial 
disclosure filer.
    (k) Prior to termination whenever practicable but in no case more 
than 15 days after termination is the deadline, pursuant to Sec.  
2638.105(a)(2), for the lead human resources official to notify the DAEO 
of the termination of a public financial disclosure filer.
    (l) Within 15 days of appointment is the deadline for certain agency 
leaders to complete ethics briefings, pursuant to Sec.  2638.305(b).
    (m) Within 30 days of designation is the deadline for the agency 
head to notify the Director of the designation of any DAEO or ADAEO, 
pursuant to Sec.  2638.107(a).
    (n) Within 3 months of appointment is the deadline for new employees 
to complete initial ethics training, pursuant to Sec.  2638.304(b).
    (o) Within 1 year of appointment is the deadline for new supervisors 
to receive supervisory ethics notices, pursuant to Sec.  2638.306(b).
    (p) Not later than 12 months before any Presidential election is the 
deadline for the agency head or the DAEO to evaluate whether the 
agency's ethics program has an adequate number of trained agency ethics 
officials to deliver effective support in the event of a Presidential 
transition, pursuant to Sec.  2638.210(a).



PART 2640_INTERPRETATION, EXEMPTIONS AND WAIVER GUIDANCE 
CONCERNING 18 U.S.C. 208 (ACTS AFFECTING A PERSONAL FINANCIAL INTEREST)--
Table of Contents



                      Subpart A_General Provisions

Sec.
2640.101 Purpose.
2640.102 Definitions.
2640.103 Prohibition.

          Subpart B_Exemptions Pursuant to 18 U.S.C. 208(b)(2)

2640.201 Exemptions for interests in mutual funds, unit investment 
          trusts, and employee benefit plans.
2640.202 Exemptions for interests in securities.
2640.203 Miscellaneous exemptions.
2640.204 Prohibited financial interests.
2640.205 Employee responsibility.
2640.206 Existing agency exemptions.

                      Subpart C_Individual Waivers

2640.301 Waivers issued pursuant to 18 U.S.C. 208(b)(1).
2640.302 Waivers issued pursuant to 18 U.S.C. 208(b)(3).
2640.303 Consultation and notification regarding waivers.
2640.304 Public availability of agency waivers.

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 18 
U.S.C. 208; 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: 61 FR 66841, Dec. 18, 1996, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2640.101  Purpose.

    18 U.S.C. 208(a) prohibits an officer or employee of the executive 
branch, of any independent agency of the United States, of the District 
of Columbia, or Federal Reserve bank director, officer, or employee, or 
any special Government employee from participating in an official 
capacity in particular matters in which he has a personal financial 
interest, or in which certain persons or organizations with which he is 
affiliated have a financial interest. The statute is intended to prevent 
an employee from allowing personal interests to affect his official 
actions, and to protect governmental processes from actual or apparent 
conflicts of interests. However, in certain cases, the nature and size 
of the financial interest and the nature of the matter in which the 
employee would act are unlikely to affect an employee's official 
actions. Accordingly, the statute permits waivers of the 
disqualification provision in certain cases, either on an individual 
basis or pursuant to general regulation. Section 208(b)(2) provides that 
the Director of the Office of Government

[[Page 695]]

Ethics may, by regulation, exempt from the general prohibition, 
financial interests which are too remote or too inconsequential to 
affect the integrity of the services of the employees to which the 
prohibition applies. The regulations in this part describe those 
financial interests. This part also provides guidance to agencies on the 
factors to consider when issuing individual waivers under 18 U.S.C. 208 
(b)(1) or (b)(3), and provides an interpretation of 18 U.S.C. 208(a).



Sec.  2640.102  Definitions.

    For purposes of this part:
    (a) Diversified means that the fund, trust or plan does not have a 
stated policy of concentrating its investments in any industry, 
business, single country other than the United States, or bonds of a 
single State within the United States and, in the case of an employee 
benefit plan, means that the plan's trustee has a written policy of 
varying plan investments.

    Note to paragraph (a): A mutual fund is diversified for purposes of 
this part if it does not have a policy of concentrating its investments 
in an industry, business, country other than the United States, or 
single State within the United States. Whether a mutual fund meets this 
standard may be determined by checking the fund's prospectus or by 
calling a broker or the manager of the fund. An employee benefit plan is 
diversified if the plan manager has a written policy of varying assets. 
This policy might be found in materials describing the plan or may be 
obtained in a written statement from the plan manager. It is important 
to note that a mutual fund or employee benefit plan that is diversified 
for purposes of this part may not necessarily be an excepted investment 
fund (EIF) for purposes of reporting financial interests pursuant to 5 
CFR 2634.310(c) and 2634.907(i)(3). In some cases, an employee may have 
to report the underlying assets of a fund or plan on his financial 
disclosure statement even though an exemption set forth in this part 
would permit the employee to participate in a matter affecting the 
underlying assets of the fund or plan. Conversely, there may be 
situations in which no exemption in this part is applicable to the 
assets of a fund or plan which is properly reported as an EIF on the 
employee's financial disclosure statement.

    (b) Employee means an officer or employee of the executive branch of 
the United States, or of any independent agency of the United States, a 
Federal Reserve bank director, officer, or employee, an officer or 
employee of the District of Columbia, or any other individual subject to 
requirements of 18 U.S.C. 208. The term also includes a special 
Government employee as defined in 18 U.S.C. 202.
    (c) Employee benefit plan means a plan as defined in section 3(3) of 
the Employee Retirement Income Security Act of 1974, 29 U.S.C. 1002(3), 
and that has more than one participant. An employee benefit plan is any 
plan, fund or program established or maintained by an employer or an 
employee organization, or both, to provide its participants medical, 
disability, death, unemployment, or vacation benefits, training 
programs, day care centers, scholarship funds, prepaid legal services, 
deferred income, or retirement income.
    (d) He, his, and him include she, hers, and her.
    (e) Holdings means portfolio of investments.
    (f) Independent trustee means a trustee who is independent of the 
sponsor and the participants in a plan, or is a registered investment 
advisor.
    (g) Institution of higher education means an educational institution 
as defined in 20 U.S.C. 1141(a).
    (h) Issuer means a person who issues or proposes to issue any 
security, or has any outstanding security which it has issued.
    (i) Long-term Federal Government security means a bond or note, 
except for a U.S. Savings bond, with a maturity of more than one year 
issued by the United States Treasury pursuant to 31 U.S.C. chapter 31.
    (j) Municipal security means direct obligation of, or obligation 
guaranteed as to principal or interest by, a State (or any of its 
political subdivisions, or any municipal corporate instrumentality of 
one or more States), or the District of Columbia, Puerto Rico, the 
Virgin Islands, or any other possession of the United States.
    (k) Mutual fund means an entity which is registered as a management 
company under the Investment Company Act of 1940, as amended (15 U.S.C. 
80a-1 et seq.). For purposes of this part, the term mutual fund includes 
open-end and closed-end mutual funds and registered money market funds.

[[Page 696]]

    (l) Particular matter involving specific parties includes any 
judicial or other proceeding, application, request for a ruling or other 
determination, contract, claim, controversy, investigation, charge, 
accusation, arrest or other particular matter involving a specific party 
or parties. The term typically involves a specific proceeding affecting 
the legal rights of the parties, or an isolatable transaction or related 
set of transactions between identified parties.
    (m) Particular matter of general applicability means a particular 
matter that is focused on the interests of a discrete and identifiable 
class of persons, but does not involve specific parties.
    (n) Pension plan means any plan, fund or program maintained by an 
employer or an employee organization, or both, to provide retirement 
income to employees, or which results in deferral of income for periods 
extending to, or beyond, termination of employment.
    (o) Person means an individual, corporation, company, association, 
firm, partnership, society or any other organization or institution.
    (p) Publicly traded security means a security as defined in 
paragraph (r) of this section and which is:
    (1) Registered with the Securities and Exchange Commission pursuant 
to section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) and 
listed on a national or regional securities exchange or traded through 
NASDAQ;
    (2) Issued by an investment company registered pursuant to section 8 
of the Investment Company Act of 1940, as amended (15 U.S.C. 80a-8); or
    (3) A corporate bond registered as an offering with the Securities 
and Exchange Commission under section 12 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78l) and issued by an entity whose stock is a 
publicly traded security.

    Note to paragraph (p): National securities exchanges include the 
American Stock Exchange and the New York Stock Exchange. Regional 
exchanges include Boston, Cincinnati, Intermountain (Salt Lake City), 
Midwest (Chicago), Pacific (Los Angeles and San Francisco), Philadelphia 
(Philadelphia and Miami), and Spokane stock exchanges.

    (q) Sector mutual fund or sector unit investment trust means a 
mutual fund or unit investment trust that concentrates its investments 
in an industry, business, single country other than the United States, 
or bonds of a single State within the United States.
    (r) Security means common stock, preferred stock, corporate bond, 
municipal security, long-term Federal Government security, and limited 
partnership interest. The term also includes ``mutual fund'' for 
purposes of Sec.  2640.202(e) and (f) and Sec.  2640.203(a).
    (s) Short-term Federal Government security means a bill with a 
maturity of one year or less issued by the United States Treasury 
pursuant to 31 U.S.C. chapter 31.
    (t) Special Government employee means those executive branch 
officers or employees specified in 18 U.S.C. 202(a). A special 
Government employee is retained, designated, appointed or employed to 
perform temporary duties either on a full-time or intermittent basis, 
with or without compensation, for a period not to exceed 130 days during 
any consecutive 365-day period.
    (u) Unit investment trust means an investment company as defined in 
15 U.S.C. 80a-4(2) that is a regulated investment company under 26 
U.S.C. 851.
    (v) United States Savings bond means a savings bond issued by the 
United States Treasury pursuant to 31 U.S.C. 3105.

[61 FR 66841, Dec. 18, 1996, as amended at 67 FR 12445, Mar. 19, 2002; 
71 FR 28239, May 16, 2006; 78 FR 14441, Mar. 6, 2013; 81 FR 61100, Sept. 
6, 2016]



Sec.  2640.103  Prohibition.

    (a) Statutory prohibition. Unless permitted by 18 U.S.C. 208(b) (1)-
(4), 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 his knowledge, he or any other person specified in 
the statute has a financial interest, if the particular matter will have 
a direct and predictable effect on that interest. The restrictions of 18 
U.S.C. 208 are described more fully in 5 CFR 2635.401 and 2635.402.
    (1) Particular matter. The term ``particular matter'' includes only 
matters that involve deliberation, decision, or action that is focused 
upon the interests of specific persons, or a discrete

[[Page 697]]

and identifiable class of persons. The term may include matters which do 
not involve formal parties and may extend to legislation or policy 
making that is narrowly focused on the interests of a discrete and 
identifiable class of persons. It does not, however, cover consideration 
or adoption of broad policy options directed to the interests of a large 
and diverse group of persons. The particular matters covered by this 
part include a judicial or other proceeding, application or request for 
a ruling or other determination, contract, claim, controversy, charge, 
accusation or arrest.

    Example 1: The Overseas Private Investment Corporation decides to 
hire a contractor to conduct EEO training for its employees. The award 
of a contract for training services is a particular matter.
    Example 2: The spouse of a high level official of the Internal 
Revenue Service (IRS) requests a meeting on behalf of her client (a 
major U.S. corporation) with IRS officials to discuss a provision of IRS 
regulations governing depreciation of equipment. The spouse will be paid 
a fee by the corporation for arranging and attending the meeting. The 
consideration of the spouse's request and the decision to hold the 
meeting are particular matters in which the spouse has a financial 
interest.
    Example 3: A regulation published by the Department of Agriculture 
applicable only to companies that operate meat packing plants is a 
particular matter.
    Example 4: A change by the Department of Labor to health and safety 
regulations applicable to all employers in the United States is not a 
particular matter. The change in the regulations is directed to the 
interests of a large and diverse group of persons.
    Example 5: The allocation of additional resources to the 
investigation and prosecution of white collar crime by the Department of 
Justice is not a particular matter. Similarly, deliberations on the 
general merits of an omnibus bill such as the Tax Reform Act of 1986 are 
not sufficiently focused on the interests of specific persons, or a 
discrete and identifiable group of persons to constitute participation 
in a particular matter.
    Example 6: The recommendations of the Council of Economic Advisors 
to the President about appropriate policies to maintain economic growth 
and stability are not particular matters. Discussions about economic 
growth policies are directed to the interests of a large and diverse 
group of persons.
    Example 7: The formulation and implementation of the response of the 
United States to the military invasion of a U.S. ally is not a 
particular matter. General deliberations, decisions and actions 
concerning a response are based on a consideration of the political, 
military, diplomatic and economic interests of every sector of society 
and are too diffuse to be focused on the interests of specific 
individuals or entities. However, at the time consideration is given to 
actions focused on specific individuals or entities, or a discrete and 
identifiable class of individuals or entities, the matters under 
consideration would be particular matters. These would include, for 
example, discussions whether to close a particular oil pumping station 
or pipeline in the area where hostilities are taking place, or a 
decision to seize a particular oil field or oil tanker.
    Example 8: A legislative proposal for broad health care reform is 
not a particular matter because it is not focused on the interests of 
specific persons, or a discrete and identifiable class of persons. It is 
intended to affect every person in the United States. However, 
consideration and implementation, through regulations, of a section of 
the health care bill limiting the amount that can be charged for 
prescription drugs is sufficiently focused on the interests of 
pharmaceutical companies that it would be a particular matter.

    (2) Personal and substantial participation. To participate 
``personally'' means to participate directly. It includes the direct and 
active supervision of the participation of a subordinate in the matter. 
To participate ``substantially'' means that the employee's involvement 
is of significance to the matter. Participation may be substantial even 
though it is not determinative of the outcome of a particular matter. 
However, it requires more than official responsibility, knowledge, 
perfunctory involvement, or involvement on an administrative or 
peripheral issue. A finding of substantiality should be based not only 
on the effort devoted to the matter, but also on the importance of the 
effort. While a series of peripheral involvements may be insubstantial, 
the single act of approving or participating in a critical step may be 
substantial. Personal and substantial participation may occur when, for 
example, an employee participates through decision, approval, 
disapproval, recommendation, investigation or the rendering of advice in 
a particular matter.

    Example 1 to paragraph (a)(2): An agency's Office of Enforcement is 
investigating the allegedly fraudulent marketing practices of a

[[Page 698]]

major corporation. One of the agency's personnel specialists is asked to 
provide information to the Office of Enforcement about the agency's 
personnel ceiling so that the Office can determine whether new employees 
can be hired to work on the investigation. The employee personnel 
specialist owns $20,000 worth of stock in the corporation that is the 
target of the investigation. She does not have a disqualifying financial 
interest in the matter (the investigation and possible subsequent 
enforcement proceedings) because her involvement is on a peripheral 
personnel issue and her participation cannot be considered 
``substantial'' as defined in the statute.

    (3) Direct and predictable effect. (i) A particular matter will have 
a ``direct'' effect on a financial interest if there is a close causal 
link between any decision or action to be taken in the matter and any 
expected effect of the matter on the financial interest. An effect may 
be direct even though it does not occur immediately. A particular matter 
will not have a direct effect on a financial interest, however, if the 
chain of causation is attenuated or is contingent upon the occurrence of 
events that are speculative or that are independent of, and unrelated 
to, the matter. A particular matter that has an effect on a financial 
interest only as a consequence of its effects on the general economy 
does not have a direct effect within the meaning of this part.
    (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.

    Example 1: An attorney at the Department of Justice is working on a 
case in which several large companies are defendants. If the Department 
wins the case, the defendants may be required to reimburse the Federal 
Government for their failure to adequately perform work under several 
contracts with the Government. The attorney's spouse is a salaried 
employee of one of the companies, working in a division that has no 
involvement in any of the contracts. She does not participate in any 
bonus or benefit plans tied to the profitability of the company, nor 
does she own stock in the company. Because there is no evidence that the 
case will have a direct and predictable effect on whether the spouse 
will retain her job or maintain the level of her salary, or whether the 
company will undergo any reorganization that would affect her interests, 
the attorney would not have a disqualifying financial interest in the 
matter. However, the attorney must consider, under the requirements of 
Sec.  2635.502 of this chapter, whether his impartiality would be 
questioned if he continues to work on the case.
    Example 2: A special Government employee (SGE) whose principal 
employment is as a researcher at a major university is appointed to 
serve on an advisory committee that will evaluate the safety and 
effectiveness of a new medical device to regulate arrhythmic heartbeats. 
The device is being developed by Alpha Medical Inc., a company which 
also has contracted with the SGE's university to assist in developing 
another medical device related to kidney dialysis. There is no evidence 
that the advisory committee's determinations concerning the medical 
device under review will affect Alpha Medical's contract with the 
university to develop the kidney dialysis device. The SGE may 
participate in the committee's deliberations because those deliberations 
will not have a direct and predictable effect on the financial interests 
of the researcher or his employer.
    Example 3: The SGE in the preceding example is instead asked to 
serve on an advisory committee that has been convened to conduct a 
preliminary evaluation of the new kidney dialysis device developed by 
Alpha Medical under contract with the employee's university. Alpha's 
contract with the university requires the university to undertake 
additional testing of the device to address issues raised by the 
committee during its review. The committee's actions will have a direct 
and predictable effect on the university's financial interest.
    Example 4: An engineer at the Environmental Protection Agency (EPA) 
was formerly employed by Waste Management, Inc., a corporation subject 
to EPA's regulations concerning the disposal of hazardous waste 
materials. Waste Management is a large corporation, with less than 5% of 
its profits derived from handling hazardous waste materials. The 
engineer has a vested interest in a defined benefit pension plan 
sponsored by Waste Management which guarantees that he will receive 
payments of $500 per month beginning at age 62. As an employee of EPA, 
the engineer has been assigned to evaluate Waste Management's compliance 
with EPA hazardous waste regulations. There is no evidence that the 
engineer's monitoring activities will affect Waste Management's ability 
or willingness to pay his pension benefits when he is entitled to 
receive them at age 62. Therefore, the EPA's monitoring activities will 
not have a direct and predictable effect on the employee's financial 
interest in his Waste Management pension. However, the engineer should 
consider whether, under the

[[Page 699]]

standards set forth in 5 CFR 2635.502, a reasonable person would 
question his impartiality if he acts in a matter in which Waste 
Management is a party.

    (b) Disqualifying financial interests. For purposes of 18 U.S.C. 
208(a) and this part, the term financial interest means the potential 
for gain or loss to the employee, or other person specified in section 
208, as a result of governmental action on the particular matter. The 
disqualifying financial interest might arise from ownership of certain 
financial instruments or investments such as stock, bonds, mutual funds, 
or real estate. Additionally, a disqualifying financial interest might 
derive from a salary, indebtedness, job offer, or any similar interest 
that may be affected by the matter.

    Example 1: An employee of the Department of the Interior owns 
transportation bonds issued by the State of Minnesota. The proceeds of 
the bonds will be used to fund improvements to certain State highways. 
In her official position, the employee is evaluating an application from 
Minnesota for a grant to support a State wildlife refuge. The employee's 
ownership of the transportation bonds does not create a disqualifying 
financial interest in Minnesota's application for wildlife funds because 
approval or disapproval of the grant will not in any way affect the 
current value of the bonds or have a direct and predictable effect on 
the State's ability or willingness to honor its obligation to pay the 
bonds when they mature.
    Example 2: An employee of the Bureau of Land Management owns 
undeveloped land adjacent to Federal lands in New Mexico. A portion of 
the Federal land will be leased by the Bureau to a mining company for 
exploration and development, resulting in an increase in the value of 
the surrounding privately owned land, including that owned by the 
employee. The employee has a financial interest in the lease of the 
Federal land to the mining company and, therefore, cannot participate in 
Bureau matters involving the lease unless he obtains an individual 
waiver pursuant to 18 U.S.C. 208(b)(1).
    Example 3: A special Government employee serving on an advisory 
committee studying the safety and effectiveness of a new arthritis drug 
is a practicing physician with a specialty in treating arthritis. The 
drug being studied by the committee would be a low cost alternative to 
current treatments for arthritis. If the drug is ultimately approved, 
the physician will be able to prescribe the less expensive drug. The 
physician does not own stock in, or hold any position, or have any 
business relationship with the company developing the drug. Moreover, 
there is no indication that the availability of a less expensive 
treatment for arthritis will increase the volume and profitability of 
the doctor's private practice. Accordingly, the physician has no 
disqualifying financial interest in the actions of the advisory 
committee.

    (c) Interests of others. The financial interests of the following 
persons will serve to disqualify an employee to the same extent as the 
employee's own interests:
    (1) The employee's spouse;
    (2) The employee's minor child;
    (3) The employee's general partner;
    (4) An organization or entity which the employee serves as officer, 
director, trustee, general partner, or employee; and
    (5) A person with whom the employee is negotiating for, or has an 
arrangement concerning, prospective employment.

    Example 1: An employee of the Consumer Product Safety Commission 
(CPSC) has two minor children who have inherited shares of stock from 
their grandparents in a company that manufactures small appliances. 
Unless an exemption is applicable under Sec.  2640.202 or he obtains a 
waiver under 18 U.S.C. 208(b)(1), the employee is disqualified from 
participating in a CPSC proceeding to require the manufacturer to remove 
a defective appliance from the market.
    Example 2: A newly appointed employee of the Department of Housing 
and Urban Development (HUD) is a general partner with three former 
business associates in a partnership that owns a travel agency. The 
employee knows that his three general partners are also partners in 
another partnership that owns a HUD-subsidized housing project. Unless 
he receives a waiver pursuant to 18 U.S.C. 208(b)(1) permitting him to 
act, the employee must disqualify himself from particular matters 
involving the HUD-subsidized project which his general partners own.
    Example 3: The spouse of an employee of the Department of Health and 
Human Services (HHS) works for a consulting firm that provides support 
services to colleges and universities on research projects they are 
conducting under grants from HHS. The spouse is a salaried employee who 
has no direct ownership interest in the firm such as through 
stockholding, and the award of a grant to a particular university will 
have no direct and predictable effect on his continued employment or his 
salary. Because the award of a grant will not affect the spouse's 
financial interest, section 208 would not bar the HHS employee from 
participating in the award of a grant to a university to which the

[[Page 700]]

consulting firm will provide services. However, the employee should 
consider whether her participation in the award of the grant would be 
barred under the impartiality provision in the Standards of Ethical 
Conduct for Employees of the Executive Branch at 5 CFR 2635.502.

    (d) Disqualification. Unless the employee is authorized to 
participate in the particular matter by virtue of an exemption or waiver 
described in subpart B or subpart C of this part, or the interest has 
been divested in accordance with paragraph (e) of this section, an 
employee shall disqualify himself from participating in a particular 
matter in which, to his knowledge, he or any other person specified in 
the statute has a financial interest, if the particular matter will have 
a direct and predictable effect on that interest. Disqualification is 
accomplished by not participating in the particular matter.
    (1) Notification. An employee who becomes aware of the need to 
disqualify himself from participation in a particular matter to which he 
has been assigned should notify the person responsible for his 
assignment. An employee who is responsible for his own assignments 
should take whatever steps are necessary to ensure that he does not 
participate in the matter from which he is disqualified. Appropriate 
oral or written notification of the employee's disqualification may be 
made to coworkers by the employee or a supervisor to ensure that the 
employee is not involved in a matter from which he is disqualified.
    (2) Documentation. An employee need not file a written 
disqualification statement unless he is required by part 2634 of this 
chapter to file written evidence of compliance with an ethics agreement 
with the Office of Government Ethics, is asked by an agency ethics 
official or the person responsible for his assignment to file a written 
disqualification statement, or is required to do so by agency 
supplemental regulation issued pursuant to 5 CFR 2635.105. However, an 
employee may elect to create a record of his actions by providing 
written notice to a supervisor or other appropriate official.

    Example 1: The supervisor of an employee of the Department of 
Education asks the employee to attend a meeting on his behalf on 
developing national standards for science education in secondary 
schools. When the employee arrives for the meeting, she realizes one of 
the participants is the president of Education Consulting Associates 
(ECA), a firm which has been awarded a contract to prepare a bulletin 
describing the Department's policies on science education standards. The 
employee's spouse has a subcontract with ECA to provide the graphics and 
charts that will be used in the bulletin. Because the employee realizes 
that the meeting will involve matters relating to the production of the 
bulletin, the employee properly decides that she must disqualify herself 
from participating in the discussions. After withdrawing from the 
meeting, the employee should notify her supervisor about the reason for 
her disqualification. She may elect to put her disqualification 
statement in writing, or to simply notify her supervisor orally. She may 
also elect to notify appropriate coworkers about her need to disqualify 
herself from this matter.

    (e) Divestiture of a disqualifying financial interest. Upon sale or 
other divestiture of the asset or other interest that causes his 
disqualification from participation in a particular matter, an employee 
is no longer prohibited from acting in the particular matter.
    (1) Voluntary divestiture. An employee who would otherwise be 
disqualified from participation in a particular matter may voluntarily 
sell or otherwise divest himself of the interest that causes the 
disqualification.
    (2) Directed divestiture. An employee may be required to sell or 
otherwise divest himself of the disqualifying financial interest if his 
continued holding of that interest is prohibited by statute or by agency 
supplemental regulation issued in accordance with Sec.  2635.403(a) of 
this chapter, or if the agency determines in accordance with Sec.  
2635.403(b) of this chapter that a substantial conflict exists between 
the financial interest and the employee's duties or accomplishment of 
the agency's mission.
    (3) Eligibility for special tax treatment. An employee who is 
directed to divest an interest may be eligible to defer the tax 
consequences of divestiture under subpart J of part 2634 of this 
chapter. An employee who divests before obtaining a certificate of 
divestiture will not be eligible for this special tax treatment.
    (f) Official duties that give rise to potential conflicts. Where an 
employee's

[[Page 701]]

official duties create a substantial likelihood that the employee may be 
assigned to a particular matter from which he is disqualified, the 
employee should advise his supervisor or other person responsible for 
his assignments of that potential so that conflicting assignments can be 
avoided, consistent with the agency's needs.

[61 FR 66841, Dec. 18, 1996, as amended at 67 FR 12445, Mar. 19, 2002]



          Subpart B_Exemptions Pursuant to 18 U.S.C. 208(b)(2)



Sec.  2640.201  Exemptions for interests in mutual funds, 
unit investment trusts, and employee benefit plans.

    (a) Diversified mutual funds and unit investment trusts. An employee 
may participate in any particular matter affecting one or more holdings 
of a diversified mutual fund or a diversified unit investment trust 
where the disqualifying financial interest in the matter arises because 
of the ownership of an interest in the fund or trust.

    Example 1 to paragraph (a): An employee owns shares worth $100,000 
in several mutual funds whose portfolios contain stock in a small 
computer company. Each mutual fund prospectus describes the fund as a 
``management company,'' but does not characterize the fund as having a 
policy of concentrating its investments in any particular industry, 
business, single country (other than the U.S.) or bonds of a single 
State. The employee may participate in agency matters affecting the 
computer company.
    Example 2 to paragraph (a): A nonsupervisory employee of the 
Department of Energy owns shares valued at $75,000 in a mutual fund that 
expressly concentrates its holdings in the stock of utility companies. 
The employee may not rely on the exemption in paragraph (a) of this 
section to act in matters affecting a utility company whose stock is a 
part of the mutual fund's portfolio because the fund is not a 
diversified fund as defined in Sec.  2640.102(a). The employee may, 
however, seek an individual waiver under 18 U.S.C. 208(b)(1) permitting 
him to act.

    (b) Sector mutual funds. (1) An employee may participate in any 
particular matter affecting one or more holdings of a sector mutual fund 
or a sector unit investment trust where the affected holding is not 
invested in the sector in which the fund or trust concentrates, and 
where the disqualifying financial interest in the matter arises because 
of ownership of an interest in the fund or unit investment trust.
    (2)(i) An employee may participate in a particular matter affecting 
one or more holdings of a sector mutual fund or a sector unit investment 
trust where the disqualifying financial interest in the matter arises 
because of ownership of an interest in the fund or the unit investment 
trust and the aggregate market value of interests in any sector fund or 
funds and any sector unit investment trust or trusts does not exceed 
$50,000.
    (ii) For purposes of calculating the $50,000 de minimis amount in 
paragraph (b)(2)(i) of this section, an employee must aggregate the 
market value of all sector mutual funds and sector unit investment 
trusts in which he has a disqualifying financial interest and that 
concentrate in the same sector and have one or more holdings that may be 
affected by the particular matter.

    Example 1 to paragraph (b): An employee of the Federal Reserve owns 
shares in the mutual fund described in the preceding example. In 
addition to holdings in utility companies, the mutual fund contains 
stock in certain regional banks and bank holding companies whose 
financial interests would be affected by an investigation in which the 
Federal Reserve employee would participate. The employee is not 
disqualified from participating in the investigation because the banks 
that would be affected are not part of the sector in which the fund 
concentrates.
    Example 2 to paragraph (b): A health scientist administrator 
employed in the Public Health Service at the Department of Health and 
Human Services is assigned to serve on a Departmentwide task force that 
will recommend changes in how Medicare reimbursements will be made to 
health care providers. The employee owns $35,000 worth of shares in the 
XYZ Health Sciences Fund, a sector mutual fund invested primarily in 
health-related companies such as pharmaceuticals, developers of medical 
instruments and devices, managed care health organizations, and acute 
care hospitals. The health scientist administrator may participate in 
the recommendations.
    Example 3 to paragraph (b): The spouse of the employee in the 
previous Example owns $40,000 worth of shares in ABC Specialized 
Portfolios: Healthcare, a sector mutual fund that also concentrates its 
investments in health-related companies. The two funds focus on the same 
sector and both contain

[[Page 702]]

holdings that may be affected by the particular matter. Because the 
aggregated value of the two funds exceeds $50,000, the employee may not 
rely on the exemption.

    (c) Employee benefit plans. An employee may participate in:
    (1) Any particular matter affecting one or more holdings of an 
employee benefit plan, where the disqualifying financial interest in the 
matter arises from membership in:
    (i) The Thrift Savings Plan for Federal employees described in 5 
U.S.C. 8437;
    (ii) A pension plan established or maintained by a State government 
or any political subdivision of a State government for its employees; or
    (iii) A diversified employee benefit plan, provided:
    (A) The investments of the plan are administered by an independent 
trustee, and the employee, or other person specified in section 208(a) 
does not participate in the selection of the plan's investments or 
designate specific plan investments (except for directing that 
contributions be divided among several different categories of 
investments, such as stocks, bonds or mutual funds, which are available 
to plan participants); and
    (B) The plan is not a profit-sharing or stock bonus plan.

    Note to paragraph (c)(1): Employee benefit plans that are tax 
deferred under 26 U.S.C. 401(k) are not considered profit-sharing plans 
for purposes of this section. However, for the exemption to apply, 
401(k) plans must meet the requirements of paragraph (c)(1)(iii)(A) of 
this section.

    (2) Particular matters of general applicability, such as rulemaking, 
affecting the State or local government sponsor of a State or local 
government pension plan described in paragraph (c)(1)(ii) of this 
section where the disqualifying financial interest in the matter arises 
because of participation in the plan.

    Example 1: An attorney terminates his position with a law firm to 
take a position with the Department of Justice. As a result of his 
employment with the firm, the employee has interests in a 401(k) plan, 
the assets of which are invested primarily in stocks chosen by an 
independent financial management firm. He also participates in a defined 
contribution pension plan maintained by the firm, the assets of which 
are stocks, bonds, and financial instruments. The plan is managed by an 
independent trustee. Assuming that the manager of the pension plan has a 
written policy of diversifying plan investments, the employee may act in 
matters affecting the plan's holdings. The employee may also participate 
in matters affecting the holdings of his 401(k) plan if the individual 
financial management firm that selects the plan's investments has a 
written policy of diversifying the plan's assets. Employee benefit plans 
that are tax deferred under 26 U.S.C. 401(k) are not considered profit-
sharing or stock bonus plans for purposes of this part.
    Example 2: An employee of the Department of Agriculture who is a 
former New York State employee has a vested interest in a pension plan 
established by the State of New York for its employees. She may 
participate in an agency matter that would affect a company whose stock 
is in the pension plan's portfolio. She also may participate in a matter 
of general applicability affecting all States, including the State of 
New York, such as the drafting and promulgation of a rule requiring 
States to expend additional resources implementing the Food Stamp 
program. Unless she obtains an individual waiver under 18 U.S.C. 
208(b)(1), she may not participate in a matter involving the State of 
New York as a party, such as an application by the State for additional 
Federal funding for administrative support services, if that matter 
would affect the State's ability or willingness to honor its obligation 
to pay her pension benefits.

    (d) Matters affecting mutual funds and unit investment trusts. In 
addition to participation in the particular matters affecting the 
holdings of mutual funds and unit investment trusts as permitted under 
paragraphs (a) and (b) of this section, an employee may participate in 
any particular matter of general applicability affecting a mutual fund 
or unit investment trust where the disqualifying financial interest 
arises because of the ownership of an interest in the mutual fund or 
unit investment trust.

[61 FR 66841, Dec. 18, 1996; 62 FR 1361, Jan. 9, 1997, as amended at 67 
FR 12445, Mar. 19, 2002; 70 FR 69043, Nov. 14, 2005; 78 FR 14442, Mar. 
6, 2013]



Sec.  2640.202  Exemptions for interests in securities.

    (a) De minimis exemption for matters involving parties. An employee 
may participate in any particular matter involving specific parties in 
which the disqualifying financial interest arises

[[Page 703]]

from the ownership by the employee, his spouse or minor children of 
securities issued by one or more entities affected by the matter, if:
    (1) The securities are publicly traded, or are long-term Federal 
Government, or are municipal securities; and
    (2) The aggregate market value of the holdings of the employee, his 
spouse, and his minor children in the securities of all entities does 
not exceed $15,000.

    Example 1 to paragraph (a): An employee owns 100 shares of publicly 
traded stock valued at $3,000 in XYZ Corporation. As part of his 
official duties, the employee is evaluating bids for performing computer 
maintenance services at his agency and discovers that XYZ Corporation is 
one of the companies that has submitted a bid. The employee is not 
required to recuse himself from continuing to evaluate the bids.
    Example 2 to paragraph (a): In the preceding example, the employee 
and his spouse each own $8,000 worth of stock in XYZ Corporation, 
resulting in ownership of $16,000 worth of stock by the employee and his 
spouse. The exemption in paragraph (a) of this section would not permit 
the employee to participate in the evaluation of bids because the 
aggregate market value of the holdings of the employee, spouse and minor 
children in XYZ Corporation exceeds $15,000. The employee could, 
however, seek an individual waiver under 18 U.S.C. 208(b)(1) in order to 
participate in the evaluation of bids.
    Example 3 to paragraph (a): An employee is assigned to monitor XYZ 
Corporation's performance of a contract to provide computer maintenance 
services at the employee's agency. At the time the employee is first 
assigned these duties, he owns publicly traded stock in XYZ Corporation 
valued at less than $15,000. During the time the contract is being 
performed, however, the value of the employee's stock increases to 
$17,500. When the employee knows that the value of his stock exceeds 
$15,000, he must disqualify himself from any further participation in 
matters affecting XYZ Corporation or seek an individual waiver under 18 
U.S.C. 208(b)(1). Alternatively, the employee may divest the portion of 
his XYZ stock that exceeds $15,000. This can be accomplished through a 
standing order with his broker to sell when the value of the stock 
exceeds $15,000.

    (b) De minimis exemption for matters affecting nonparties. An 
employee may participate in any particular matter involving specific 
parties in which the disqualifying financial interest arises from the 
ownership by the employee, his spouse, or minor children of securities 
issued by one or more entities that are not parties to the matter but 
that are affected by the matter, if:
    (1) The securities are publicly traded, or are long-term Federal 
Government or municipal securities; and
    (2) The aggregate market value of the holdings of the employee, his 
spouse and minor children in the securities of all affected entities 
(including securities exempted under paragraph (a) of this section) does 
not exceed $25,000.

    Example 1 to paragraph (b): A Food and Drug Administration advisory 
committee is asked to review a new drug application from Alpha Drug Co. 
for a new lung cancer drug. A member of the advisory committee owns 
$20,000 worth of stock in Mega Drug Co., which manufactures the only 
similar lung cancer drug on the market. If approved, the Alpha Drug 
Co.'s drug would directly compete with the drug sold by the Mega Drug 
Co., resulting in decreased sales of its lung cancer drug. The committee 
member may participate in the review of the new drug.

    (c) De minimis exemption for matters of general applicability. (1) 
An employee may participate in any particular matter of general 
applicability, such as rulemaking, in which the disqualifying financial 
interest arises from the ownership by the employee, his spouse or minor 
children of securities issued by one or more entities affected by the 
matter, if:
    (i) The securities are publicly traded, or are municipal securities, 
the market value of which does not exceed:
    (A) $25,000 in any one such entity; and
    (B) $50,000 in all affected entities; or
    (ii) The securities are long-term Federal Government securities, the 
market value of which does not exceed $50,000.
    (2) For purposes of this paragraph (b), the value of securities 
owned by the employee, his spouse, and minor children must be aggregated 
in applying the exemption.

    Example 1 to paragraph (c): The Bureau of Export Administration at 
the Department of Commerce is in the process of formulating a regulation 
concerning exportation of portable computers. The regulation will affect 
all domestic companies that sell portable computers. An employee of the 
Department who is assisting in drafting the regulation owns $17,000 
worth of stock in CompAmerica and $20,000 worth of stock in XYZ Computer 
Inc. Even though the employee owns $37,000

[[Page 704]]

worth of stock in companies that will be affected by the regulation, she 
may participate in drafting the regulation because the value of the 
securities she owns does not exceed $25,000 in any one affected company 
and the total value of stock owned in all affected companies does not 
exceed $50,000.

    (d) Exemption for certain Federal Government securities. An employee 
may participate in any particular matter in which the disqualifying 
financial interest arises from the ownership of short-term Federal 
Government securities or from U.S. Savings bonds.
    (e) Exemption for interests of tax-exempt organizations. An employee 
may participate in any particular matter in which the disqualifying 
financial interest arises from the ownership of publicly traded or 
municipal securities, or long-term Federal Government securities by an 
organization which is tax-exempt pursuant to 26 U.S.C. 501(c) (3) or 
(4), and of which the employee is an unpaid officer, director, or 
trustee, or an employee, if:
    (1) The matter affects only the organization's investments, not the 
organization directly;
    (2) The employee plays no role in making investment decisions for 
the organization, except for participating in the decision to invest in 
several different categories of investments such as stocks, bonds, or 
mutual funds; and
    (3) The organization's only relationship to the issuer, other than 
that which arises from routine commercial transactions, is that of 
investor.

    Example 1: An employee of the Federal Reserve is a director of the 
National Association to Save Trees (NAST), an environmental organization 
that is tax-exempt under section 501(c)(3) of the Internal Revenue Code. 
The employee knows that NAST has an endowment fund that is partially 
invested in the publicly traded stock of Computer Inc. The employee's 
position at the Federal Reserve involves the procurement of computer 
software, including software marketed by Computer Inc. The employee may 
participate in the procurement of software from Computer Inc. provided 
that he is not involved in selecting NAST's investments, and that NAST 
has no relationship to Computer Inc. other than as an investor in the 
company and routine purchaser of Computer Inc. software.

    (f) Exemption for certain interests of general partners. An employee 
may participate in any particular matter in which the disqualifying 
financial interest arises from:
    (1) The ownership of publicly traded securities, long-term Federal 
Government securities, or municipal securities by the employee's general 
partner, provided:
    (i) Ownership of the securities is not related to the partnership 
between the employee and his general partner, and
    (ii) The value of the securities does not exceed $200,000; or
    (2) Any interest of the employee's general partner if the employee's 
relationship to the general partner is as a limited partner in a 
partnership that has at least 100 limited partners.

    Example 1: An employee of the Department of Transportation is a 
general partner in a partnership that owns commercial property. The 
employee knows that one of his partners owns stock in an aviation 
company valued at $100,000 because the stock has been pledged as 
collateral for the purchase of the commercial property by the 
partnership. In the absence of an individual waiver under 18 U.S.C. 
208(b)(1), the employee may not act in a matter affecting the aviation 
company. Because the stock has been pledged as collateral, ownership of 
the securities is related to the partnership between the employee and 
his general partner.
    Example 2: An employee of the Pension Benefit Guaranty Corporation 
(PBGC) has a limited partnership interest in Ambank Partners, a large 
partnership with more than 500 limited partners. The partnership assets 
are invested in the securities of various financial institutions. 
Ambank's general partner is Capital Investment Services, an investment 
firm whose pension plan for its own employees is being examined by the 
PBGC for possible unfunded liabilities. Even though the employee's 
general partner (Capital Investment Services) has a financial interest 
in PBGC's review of the pension plan, the employee may participate in 
the review because his relationship with his general partner is that of 
a limited partner in a partnership that has at least 100 limited 
partners.

[61 FR 66841, Dec. 18, 1996; 62 FR 1361, Jan. 9, 1997, as amended at 67 
FR 12445, Mar. 19, 2002]



Sec.  2640.203  Miscellaneous exemptions.

    (a) Hiring decisions. An employee may participate in a hiring 
decision involving an applicant who is currently employed by a 
corporation that issues publicly traded securities, if the disqualifying 
financial interest arises from:

[[Page 705]]

    (1) Ownership of publicly traded securities issued by the 
corporation; or
    (2) Participation in a pension plan sponsored by the corporation.
    (b) Employees on leave from institutions of higher education. An 
employee on a leave of absence from an institution of higher education 
may participate in any particular matter of general applicability 
affecting the financial interests of the institution from which he is on 
leave, provided that the matter will not have a special or distinct 
effect on that institution other than as part of a class.

    Example 1: An employee at the Department of Defense (DOD) is on a 
leave of absence from his position as a tenured Professor of Engineering 
at the University of California (UC) at Berkeley. While at DOD, he is 
assigned to assist in developing a regulation which will contain new 
standards for the oversight of grants given by DOD. Even though the 
University of California at Berkeley is a DOD grantee, and will be 
affected by these new monitoring standards, the employee may participate 
in developing the standards because UC Berkeley will be affected only as 
part of the class of all DOD grantees. However, if the new standards 
would affect the employee's own financial interest, such as by affecting 
his tenure or his salary, the employee could not participate in the 
matter unless he first obtains an individual waiver under section 
208(b)(1).
    Example 2: An employee on leave from a university could not 
participate in the development of an agency program of grants 
specifically designed to facilitate research in jet propulsion systems 
where the employee's university is one of just two or three universities 
likely to receive a grant under the new program. Even though the grant 
announcement is open to all universities, the employee's university is 
among the very few known to have facilities and equipment adequate to 
conduct the research. The matter would have a distinct effect on the 
institution other than as part of a class.

    (c) Multi-campus institutions of higher education. An employee may 
participate in any particular matter affecting one campus of a State 
multi-campus institution of higher education, if the employee's 
disqualifying financial interest is employment in a position with no 
multi-campus responsibilities at a separate campus of the same multi-
campus institution.

    Example 1: A special Government employee (SGE) member of an advisory 
committee convened by the National Science Foundation is a full-time 
professor in the School of Engineering at one campus of a State 
university. The SGE may participate in formulating the committee's 
recommendation to award a grant to a researcher at another campus of the 
same State university system.
    Example 2: A member of the Board of Regents at a State university is 
asked to serve on an advisory committee established by the Department of 
Health and Human Services to consider applications for grants for human 
genome research projects. An application from another university that is 
part of the same State system will be reviewed by the committee. Unless 
he receives an individual waiver under section 208(b)(1) or (b)(3), the 
advisory committee member may not participate in matters affecting the 
second university that is part of the State system because as a member 
of the Board of Regents, he has duties and responsibilities that affect 
the entire State educational system.

    (d) Exemptions for financial interests arising from Federal 
Government employment or from Social Security or veterans' benefits. An 
employee may participate in any particular matter where the 
disqualifying financial interest arises from Federal Government or 
Federal Reserve Bank salary or benefits, or from Social Security or 
veterans' benefits, except an employee may not:
    (1) Make determinations that individually or specially affect his 
own salary and benefits; or
    (2) Make determinations, requests, or recommendations that 
individually or specially relate to, or affect, the salary or benefits 
of any other person specified in section 208.

    Example 1: An employee of the Office of Management and Budget may 
vigorously and energetically perform the duties of his position even 
though his outstanding performance would result in a performance bonus 
or other similar merit award.
    Example 2: A policy analyst at the Defense Intelligence Agency may 
request promotion to another grade or salary level. However, the analyst 
may not recommend or approve the promotion of her general partner to the 
next grade.
    Example 3: An engineer employed by the National Science Foundation 
may request that his agency pay the registration fees and appropriate 
travel expenses required for him to attend a conference sponsored by the 
Engineering Institute of America. However, the employee may not approve 
payment of his own travel expenses and registration fees unless he has 
been delegated, in advance, authority to make such approvals in 
accordance with agency policy.

[[Page 706]]

    Example 4: A GS-14 attorney at the Department of Justice may review 
and make comments about the legal sufficiency of a bill to raise the pay 
level of all Federal employees paid under the General Schedule even 
though her own pay level, and that of her spouse who works at the 
Department of Labor, would be raised if the bill were to become law.
    Example 5: An employee of the Department of Veterans Affairs (VA) 
may assist in drafting a regulation that will provide expanded hospital 
benefits for veterans, even though he himself is a veteran who would be 
eligible for treatment in a hospital operated by the VA.
    Example 6: An employee of the Office of Personnel Management may 
participate in discussions with various health insurance providers to 
formulate the package of benefits that will be available to Federal 
employees who participate in the Government's Federal Employees Health 
Benefits Program, even though the employee will obtain health insurance 
from one of these providers through the program.
    Example 7: An employee of the Federal Supply Service Division of the 
General Services Administration (GSA) may participate in GSA's 
evaluation of the feasibility of privatizing the entire Federal Supply 
Service, even though the employee's own position would be eliminated if 
the Service were privatized.
    Example 8: Absent an individual waiver under section 208(b)(1), the 
employee in the preceding example could not participate in the 
implementation of a GSA plan to create an employee-owned private 
corporation which would carry out Federal Supply Service functions under 
contract with GSA. Because implementing the plan would result not only 
in the elimination of the employee's Federal position, but also in the 
creation of a new position in the new corporation to which the employee 
would be transferred, the employee would have a disqualifying financial 
interest in the matter arising from other than Federal salary and 
benefits, or Social Security or veterans benefits.
    Example 9: A career member of the Senior Executive Service (SES) at 
the Internal Revenue Service (IRS) may serve on a performance review 
board that makes recommendations about the performance awards that will 
be awarded to other career SES employees at the IRS. The amount of the 
employee's own SES performance award would be affected by the board's 
recommendations because all SES awards are derived from the same limited 
pool of funds. However, the employee's activities on the board involve 
only recommendations, and not determinations that individually or 
specially affect his own award. Additionally, 5 U.S.C. 5384(c)(2) 
requires that a majority of the board's members be career SES employees.
    Example 10: In carrying out a reorganization of the Office of 
General Counsel (OGC) of the Federal Trade Commission, the Deputy 
General Counsel is asked to determine which of five Senior Executive 
Service (SES) positions in the OGC to abolish. Because her own position 
is one of the five SES positions being considered for elimination, the 
matter is one that would individually or specially affect her own salary 
and benefits and, therefore, the Deputy may not decide which position 
should be abolished.
    Note to paragraph (d): This exemption does not permit an employee to 
take any action in violation of any other statutory or regulatory 
requirement, such as the prohibition on the employment of relatives at 5 
U.S.C. 3110.

    (e) Commercial discount and incentive programs. An employee may 
participate in any particular matter affecting the sponsor of a 
discount, incentive, or other similar benefit program if the 
disqualifying financial interest arises because of participation in the 
program, provided:
    (1) The program is open to the general public; and
    (2) Participation in the program involves no other financial 
interest in the sponsor, such as stockholding.

    Example 1: An attorney at the Pension Benefit Guaranty Corporation 
who is a member of a frequent flier program sponsored by Alpha Airlines 
may assist in an action against Alpha for failing to make required 
payments to its employee pension fund, even though the agency action 
will cause Alpha to disband its frequent flier program.

    (f) Mutual insurance companies. An employee may participate in any 
particular matter affecting a mutual insurance company if the 
disqualifying financial interest arises because of an interest as a 
policyholder, unless the matter would affect the company's ability to 
pay claims required under the terms of the policy or to pay the cash 
value of the policy.

    Example 1: An administrative law judge at the Department of Labor 
receives dividends from a mutual insurance company which he takes in the 
form of reduced premiums on his life insurance policy. The amount of the 
dividend is based upon the company's overall profitability. 
Nevertheless, he may preside in a Department hearing involving a major 
corporation insured by the same company even though the insurance 
company will have to pay the corporation's penalties and other costs if 
the Department prevails in the hearing.

[[Page 707]]

    Example 2: An employee of the Department of Justice is assigned to 
prosecute a case involving the fraudulent practices of an issuer of junk 
bonds. While developing the facts pertinent to the case, the employee 
learns that the mutual life insurance company from which he holds a life 
insurance policy has invested heavily in these junk bonds. If the 
Government succeeds in its case, the bonds will be worthless and the 
corresponding decline in the insurance company's investments will impair 
the company's ability to pay claims under the policies it has issued. 
The employee may not continue assisting in the prosecution of the case 
unless he obtains an individual waiver pursuant to section 208(b)(1).

    (g) Exemption for employment interests of special Government 
employees serving on advisory committees. A special Government employee 
serving on an advisory committee within the meaning of the Federal 
Advisory Committee Act (5 U.S.C. app.) may participate in any particular 
matter of general applicability where the disqualifying financial 
interest arises from his non-Federal employment or non-Federal 
prospective employment, provided that the matter will not have a special 
or distinct effect on the employee or employer other than as part of a 
class. For purposes of this paragraph, ``disqualifying financial 
interest'' arising from non-Federal employment does not include the 
interests of a special Government employee arising from the ownership of 
stock in his employer or prospective employer.

    Example 1: A chemist employed by a major pharmaceutical company has 
been appointed to serve on an advisory committee established to develop 
recommendations for new standards for AIDS vaccine trials involving 
human subjects. Even though the chemist's employer is in the process of 
developing an experimental AIDS vaccine and therefore will be affected 
by the new standards, the chemist may participate in formulating the 
advisory committee's recommendations. The chemist's employer will be 
affected by the new standards only as part of the class of all 
pharmaceutical companies and other research entities that are attempting 
to develop an AIDS vaccine.
    Example 2: The National Cancer Institute (NCI) has established an 
advisory committee to evaluate a university's performance of an NCI 
grant to study the efficacy of a newly developed breast cancer drug. An 
employee of the university may not participate in the evaluation of the 
university's performance because it is not a matter of general 
applicability.
    Example 3: An engineer whose principal employment is with a major 
Department of Defense (DOD) contractor is appointed to serve on an 
advisory committee established by DOD to develop concepts for the next 
generation of laser-guided missiles. The engineer's employer, as well as 
a number of other similar companies, has developed certain missile 
components for DOD in the past, and has the capability to work on 
aspects of the newer missile designs under consideration by the 
committee. The engineer owns $20,000 worth of stock in his employer. 
Because the exemption for the employment interests of special Government 
employees serving on advisory committees does not extend to financial 
interests arising from the ownership of stock, the engineer may not 
participate in committee matters affecting his employer unless he 
receives an individual waiver under section 208(b)(1) or (b)(3), or 
determines whether the exemption for interests in securities at Sec.  
2640.202(b) applies.

    (h) Directors of Federal Reserve Banks. A Director of a Federal 
Reserve Bank or a branch of a Federal Reserve Bank may participate in 
the following matters, even though they may be particular matters in 
which he, or any other person specified in section 208(a), has a 
disqualifying financial interest:
    (1) Establishment of rates to be charged for all advances and 
discounts by Federal Reserve Banks;
    (2) Consideration of monetary policy matters, regulations, statutes 
and proposed or pending legislation, and other matters of broad 
applicability intended to have uniform application to banks within the 
Reserve Bank district;
    (3) Approval or ratification of extensions of credit, advances or 
discounts to a depository institution that has not been determined to be 
in a hazardous financial condition by the President of the Reserve Bank; 
or
    (4) Approval or ratification of extensions of credit, advances or 
discounts to a depository institution that has been determined to be in 
a hazardous financial condition by the President of the Reserve Bank, 
provided that the disqualifying financial interest arises from the 
ownership of stock in, or service as an officer, director, trustee, 
general partner or employee, of an entity other than the depository 
institution, or its parent holding company or subsidiary of such holding 
company.

[[Page 708]]

    (i) Medical products. A special Government employee serving on an 
advisory committee within the meaning of the Federal Advisory Committee 
Act (5 U.S.C. app.) may participate in Federal advisory committee 
matters concerning medical products if the disqualifying financial 
interest arises from:
    (1) Employment with a hospital or other similar medical facility 
whose only interest in the medical product or device is purchase of it 
for use by, or sale to, its patients; or
    (2) The use or prescription of medical products for patients.
    (j) Nonvoting members of standing technical advisory committees 
established by the Food and Drug Administration. A special Government 
employee serving as a nonvoting representative member of an advisory 
committee established by the Food and Drug Administration pursuant to 
the requirements of the Federal Advisory Committee Act (5 U.S.C. app.) 
and appointed under a statutory authority requiring the appointment of 
representative members, may participate in any particular matter 
affecting a disqualifying financial interest in the class which the 
employee represents. Nonvoting representative members of Food and Drug 
Administration advisory committees are described in 21 CFR 14.80(b)(2), 
14.84, 14.86, and 14.95(a).

    Example 1: The FDA's Medical Devices Advisory Committee is 
established pursuant to 21 U.S.C. 360c(b), which requires that each 
panel of the Committee include one nonvoting industry representative and 
one nonvoting consumer representative. An industry representative on the 
Ophthalmic Devices Panel of this Committee has been appointed as a 
special Government employee, in accordance with the procedures described 
at 14 CFR 14.84. The special Government employee may participate in 
Panel discussions concerning the premarket approval application for a 
silicone posterior chamber intraocular lens manufactured by MedInc, even 
though she is employed by, and owns stock in, another company that 
manufactures a competing product. However, a consumer representative who 
serves as a special Government employee on the same Panel may not 
participate in Panel discussions if he owns $30,000 worth of stock in 
MedInc unless he first obtains an individual waiver under 18 U.S.C. 208 
(b)(1) or (b)(3).

    (k) Employees of the Tennessee Valley Authority. An employee of the 
Tennessee Valley Authority (TVA) may participate in developing or 
approving rate schedules or similar matters affecting the general cost 
of electric power sold by TVA, if the disqualifying financial interest 
arises from use of such power by the employee or by any other person 
specified in section 208(a).
    (l) Exemption for financial interests of non-Federal government 
employers in the decennial census. An employee of the Bureau of the 
Census at the United States Department of Commerce, who is also an 
employee of a State, local, or tribal government, may participate in the 
decennial census notwithstanding the disqualifying financial interests 
of the employee's non-Federal government employer in the census provided 
that the employee:
    (1) Does not serve in a State, local, or tribal government position 
which is filled through public election;
    (2) Was hired for a temporary position under authority of 13 U.S.C. 
23; and
    (3) Is serving in a Local Census Office or an Accuracy and Coverage 
Evaluation function position as an enumerator, crew leader, or field 
operations supervisor.
    (m) Official participation in nonprofit organizations. An employee 
may participate in any particular matter where the disqualifying 
financial interest is that of a nonprofit organization in which the 
employee serves (or is seeking or has an arrangement to serve), solely 
in an official capacity, as an officer, director or trustee.

    Note to paragraph (m): Nothing in this paragraph shall be deemed 
independent authority for an agency to assign an employee to serve in an 
official capacity with a particular nonprofit organization. Agencies 
will make such determinations based on an evaluation of their own 
statutory authorities and missions. Individual agency decisions to 
permit (or not permit) an employee to serve in an official capacity 
necessarily involve a range of legal, policy, and managerial 
considerations, and nothing in this paragraph is intended to interfere 
with an agency's discretion to assign official duties and limit

[[Page 709]]

such assignments as the agency deems appropriate.

[61 FR 66841, Dec. 18, 1996, as amended at 62 FR 23128, Apr. 29, 1997; 
65 FR 16513, Mar. 29, 2000; 78 FR 14442, Mar. 6, 2013]



Sec.  2640.204  Prohibited financial interests.

    None of the exemptions set forth in Sec. Sec.  2640.201, 2640.202, 
or 2640.203 apply to any financial interest held or acquired by an 
employee, his spouse, or minor child in violation of a statute or agency 
supplemental regulation issued in accordance with 5 CFR 2635.105, or 
that is otherwise prohibited under 5 CFR 2635.403(b).

    Example 1 to Sec.  2640.204: The Office of the Comptroller of the 
Currency (OCC), in a regulation that supplements part 2635 of this 
chapter, prohibits certain employees from owning stock in commercial 
banks. If an OCC employee purchases stock valued at $2,000 in 
contravention of the regulation, the exemption at Sec.  2640.202(a) for 
interests arising from the ownership of no more than $15,000 worth of 
publicly traded stock will not apply to the employee's participation in 
matters affecting the bank.

[61 FR 66841, Dec. 18, 1996, as amended at 67 FR 12446, Mar. 19, 2002]



Sec.  2640.205  Employee responsibility.

    Prior to taking official action in a matter which an employee knows 
would affect his financial interest or the interest of another person 
specified in 18 U.S.C. 208(a), an employee must determine whether one of 
the exemptions in Sec. Sec.  2640.201, 2640.202, or 2640.203 would 
permit his action notwithstanding the existence of the disqualifying 
interest. An employee who is unsure whether an exemption is applicable 
in a particular case, should consult an agency ethics official prior to 
taking action in a particular matter.



Sec.  2640.206  Existing agency exemptions.

    An employee who, prior to January 17, 1997, acted in an official 
capacity in a particular matter in which he had a financial interest, 
will be deemed to have acted in accordance with applicable regulations 
if he acted in reliance on an exemption issued by his employing 
Government agency pursuant to 18 U.S.C. 208(b)(2), as in effect prior to 
November 30, 1989.



                      Subpart C_Individual Waivers



Sec.  2640.301  Waivers issued pursuant to 18 U.S.C. 208(b)(1).

    (a) Requirements for issuing an individual waiver under 18 U.S.C. 
208(b)(1). Pursuant to 18 U.S.C. 208(b)(1), an agency may determine in 
an individual case that a disqualifying financial interest in a 
particular matter or matters is not so substantial as to be deemed 
likely to affect the integrity of the employee's services to the 
Government. Upon making that determination, the agency may then waive 
the employee's disqualification notwithstanding the financial interest, 
and permit the employee to participate in the particular matter. Waivers 
issued pursuant to section 208(b)(1) should comply with the following 
requirements:
    (1) The disqualifying financial interest, and the nature and 
circumstances of the particular matter or matters, must be fully 
disclosed to the Government official responsible for appointing the 
employee to his position (or other Government official to whom authority 
to issue such a waiver for the employee has been delegated);
    (2) The waiver must be issued in writing by the Government official 
responsible for appointing the employee to his position (or other 
Government official to whom the authority to issue such a waiver for the 
employee has been delegated);
    (3) The waiver should describe the disqualifying financial interest, 
the particular matter or matters to which it applies, the employee's 
role in the matter or matters, and any limitations on the employee's 
ability to act in such matters;
    (4) The waiver shall be based on a determination that the 
disqualifying financial interest is not so substantial as to be deemed 
likely to affect the integrity of the employee's services to the 
Government. Statements concerning the employee's good character are not 
material to, nor a basis for making, such a decision;
    (5) The waiver must be issued prior to the employee taking any 
action in the matter or matters; and
    (6) The waiver may apply to both present and future financial 
interests,

[[Page 710]]

provided the interests are described with sufficient specificity.

    Note to paragraph (a): The disqualifying financial interest, the 
particular matter or matters to which the waiver applies, and the 
employee's role in such matters do not need to be described with any 
particular degree of specificity. For example, if a waiver were to apply 
to all matters which an employee would undertake as part of his official 
duties, the waiver document would not have to enumerate those duties. 
The information contained in the waiver, however, should provide a clear 
understanding of the nature and identity of the disqualifying financial 
interest, the matters to which the waiver will apply, and the employee's 
role in such matters.

    (b) Agency determination concerning substantiality of the 
disqualifying financial interest. In determining whether a disqualifying 
financial interest is sufficiently substantial to be deemed likely to 
affect the integrity of the employee's services to the Government, the 
responsible official may consider the following factors:
    (1) The type of interest that is creating the disqualification (e.g. 
stock, bonds, real estate, other securities, cash payment, job offer, or 
enhancement of a spouse's employment);
    (2) The identity of the person whose financial interest is involved, 
and if the interest is not the employee's, the relationship of that 
person to the employee;
    (3) The dollar value of the disqualifying financial interest, if it 
is known or can be estimated (e.g. the amount of cash payment which may 
be gained or lost, the salary of the job which will be gained or lost, 
the predictable change in either the market value of the stock or the 
actual or potential profit or loss or cost of the matter to the company 
issuing the stock, the change in the value of real estate or other 
securities);
    (4) The value of the financial instrument or holding from which the 
disqualifying financial interest arises (e.g. the face value of the 
stock, bond, other security or real estate) and its value in 
relationship to the individual's assets. If the disqualifying financial 
interest is that of a general partner or organization specified in 
section 208, this information must be provided only to the extent that 
it is known by the employee; and
    (5) 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.
    (6) Other factors which may be taken into consideration include:
    (i) The sensitivity of the matter;
    (ii) The need for the employee's services in the particular matter; 
and
    (iii) Adjustments that may be made in the employee's duties that 
would reduce or eliminate the likelihood that the integrity of the 
employee's services would be questioned by a reasonable person.



Sec.  2640.302  Waivers issued pursuant to 18 U.S.C. 208(b)(3).

    (a) Requirements for issuing an individual waiver under 18 U.S.C. 
208(b)(3). Pursuant to 18 U.S.C. 208(b)(3), an agency may determine in 
an individual case that the prohibition of 18 U.S.C. 208(a) should not 
apply to a special Government employee serving on, or an individual 
being considered for, appointment to an advisory committee established 
under the Federal Advisory Committee Act, notwithstanding the fact that 
the individual has one or more financial interests that would be 
affected by the activities of the advisory committee. The agency's 
determination must be based on a certification that the need for the 
employee's services outweighs the potential for a conflict of interest 
created by the financial interest involved. Waivers issued pursuant to 
18 U.S.C. 208(b)(3) should comply with the following requirements:
    (1) The advisory committee upon which the individual is serving, or 
will serve, is an advisory committee within the meaning of the Federal 
Advisory Committee Act, 5 U.S.C. app.;
    (2) The waiver must be issued in writing by the Government official 
responsible for the individual's appointment (or other Government 
official to which authority to issue such waivers has been delegated) 
after the official reviews the financial disclosure report filed by the 
individual pursuant to the Ethics in Government Act of 1978;

[[Page 711]]

    (3) The waiver must include a certification that the need for the 
individual's services on the advisory committee outweighs the potential 
for a conflict of interest;
    (4) The facts upon which the certification is based should be fully 
described in the waiver, including the nature of the financial interest, 
and the particular matter or matters to which the waiver applies;
    (5) The waiver should describe any limitations on the individual's 
ability to act in the matter or matters;
    (6) The waiver must be issued prior to the individual taking any 
action in the matter or matters; and
    (7) The waiver may apply to both present and future financial 
interests of the individual, provided the interests are described with 
sufficient specificity.
    (b) Agency certification concerning need for individual's services. 
In determining whether the need for an individual's services on an 
advisory committee outweighs the potential for a conflict of interest 
created by the disqualifying financial interest, the responsible 
official may consider the following factors:
    (1) The type of interest that is creating the disqualification (e.g. 
stock, bonds, real estate, other securities, cash payment, job offer, or 
enhancement of a spouse's employment);
    (2) The identity of the person whose financial interest is involved, 
and if the interest is not the individual's, the relationship of that 
person to the individual;
    (3) The uniqueness of the individual's qualifications;
    (4) The difficulty of locating a similarly qualified individual 
without a disqualifying financial interest to serve on the committee;
    (5) The dollar value of the disqualifying financial interest, if it 
is known or can be estimated (e.g. the amount of cash payment which may 
be gained or lost, the salary of the job which will be gained or lost, 
the predictable change in either the market value of the stock or the 
actual or potential profit or loss or cost of the matter to the company 
issuing the stock, the change in the value of real estate or other 
securities);
    (6) The value of the financial instrument or holding from which the 
disqualifying financial interest arises (e.g. the face value of the 
stock, bond, other security or real estate) and its value in 
relationship to the individual's assets. If the disqualifying financial 
interest is that of a general partner or organization specified in 
section 208, this information must be provided only to the extent that 
it is known by the employee; and
    (7) The extent to which the disqualifying financial interest will be 
affected individually or particularly by the actions of the advisory 
committee.



Sec.  2640.303  Consultation and notification regarding waivers.

    When practicable, an official is required to consult formally or 
informally with the Office of Government Ethics prior to granting a 
waiver referred to in Sec. Sec.  2640.301 and 2640.302. A copy of each 
such waiver is to be forwarded to the Director of the Office of 
Government Ethics.



Sec.  2640.304  Public availability of agency waivers.

    (a) Availability. A copy of an agency waiver issued pursuant to 18 
U.S.C. 208 (b)(1) or (b)(3) shall be made available upon request to the 
public by the issuing agency. Public release of waivers shall be in 
accordance with the procedures set forth in section 105 of the Ethics in 
Government Act of 1978, as amended. Those procedures are described in 5 
CFR 2634.603.
    (b) Limitations on availability. In making a waiver issued pursuant 
to 18 U.S.C. 208 (b)(1) or (b)(3) publicly available, an agency:
    (1) May withhold from public disclosure any information contained in 
the waiver that would be exempt from disclosure pursuant to 5 U.S.C. 
552; and
    (2) Shall withhold from public disclosure information in a waiver 
issued pursuant to 18 U.S.C. 208(b)(3) concerning an individual's 
financial interestwhich is more extensive than that required to be 
disclosed by the individual in his financial disclosure report under the 
Ethics in Government Act of 1978, as amended, or which is otherwise 
subject to a prohibition on public disclosure under law.

[[Page 712]]



PART 2641_POST-EMPLOYMENT CONFLICT OF INTEREST RESTRICTIONS--Table of Contents



                      Subpart A_General Provisions

Sec.
2641.101 Purpose.
2641.102 Applicability.
2641.103 Enforcement and penalties.
2641.104 Definitions.
2641.105 Advice.
2641.106 Applicability of certain provisions to Vice President.

                         Subpart B_Prohibitions

2641.201 Permanent restriction on any former employee's representations 
          to United States concerning particular matter in which the 
          employee participated personally and substantially.
2641.202 Two-year restriction on any former employee's representations 
          to United States concerning particular matter for which the 
          employee had official responsibility.
2641.203 One-year restriction on any former employee's representations, 
          aid, or advice concerning ongoing trade or treaty negotiation.
2641.204 One-year restriction on any former senior employee's 
          representations to former agency concerning any matter, 
          regardless of prior involvement.
2641.205 Two-year restriction on any former very senior employee's 
          representations to former agency or certain officials 
          concerning any matter, regardless of prior involvement.
2641.206 One-year restriction on any former senior or very senior 
          employee's representations on behalf of, or aid or advice to, 
          foreign entity.
2641.207 One-year restriction on any former private sector assignee 
          under the Information Technology Exchange Program 
          representing, aiding, counseling or assisting in representing 
          in connection with any contract with former agency.

          Subpart C_Exceptions, Waivers and Separate Components

2641.301 Statutory exceptions and waivers.
2641.302 Separate agency components.

Appendix A to Part 2641--Positions Waived From 18 U.S.C. 207(c) and (f)
Appendix B to Part 2641--Agency Components for Purposes of 18 U.S.C. 
          207(c)

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 18 
U.S.C. 207; 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: 73 FR 36186, June 25, 2008, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  2641.101  Purpose.

    18 U.S.C. 207 prohibits certain acts by former employees (including 
current employees who formerly served in ``senior'' or ``very senior'' 
employee positions) which involve, or may appear to involve, the unfair 
use of prior Government employment. None of the restrictions of section 
207 prohibits any former employee, regardless of Government rank or 
position, from accepting employment with any particular private or 
public employer. Rather, section 207 prohibits a former employee from 
providing certain services to or on behalf of non-Federal employers or 
other persons, whether or not done for compensation. These restrictions 
are personal to the employee and are not imputed to others. (See, 
however, the note following Sec.  2641.103 concerning 18 U.S.C. 2.)
    (a) This part 2641 explains the scope and content of 18 U.S.C. 207 
as it applies to former employees of the executive branch or of certain 
independent agencies (including current employees who formerly served in 
``senior'' or ``very senior'' employee positions). Although certain 
restrictions in section 207 apply to former employees of the District of 
Columbia, Members and elected officials of the Congress and certain 
legislative staff, and employees of independent agencies in the 
legislative and judicial branches, this part is not intended to provide 
guidance to those individuals.
    (b) Part 2641 does not address post-employment restrictions that may 
be contained in laws or authorities other than 18 U.S.C. 207. These 
restrictions include those in 18 U.S.C. 203 and 41 U.S.C. 423(d).



Sec.  2641.102  Applicability.

    Since its enactment in 1962, 18 U.S.C. 207 has been amended several 
times. As a consequence of these amendments, former executive branch 
employees are subject to varying post-employment restrictions depending 
upon the date they terminated Government service

[[Page 713]]

(or service in a ``senior'' or ``very senior'' employee position).
    (a) Employees terminating on or after January 1, 1991. Former 
employees who terminated or employees terminating Government service (or 
service in a ``senior'' or ``very senior'' employee position) on or 
after January 1, 1991, are subject to the provisions of 18 U.S.C. 207 as 
amended by the Ethics Reform Act of 1989, title I, Public Law 101-194, 
103 Stat. 1716 (with amendments enacted by Act of May 4, 1990, Pub. L. 
101-280, 104 Stat. 149) and by subsequent amendments. This part 2641 
provides guidance concerning section 207 to these former employees.
    (b) Employees terminating between July 1, 1979 and December 31, 
1990. Former employees who terminated service between July 1, 1979, and 
December 31, 1990, are subject to the provisions of section 207 as 
amended by the Ethics in Government Act of 1978, title V, Public Law 95-
521, 92 Stat. 1864 (with amendments enacted by Act of June 22, 1979, 
Pub. L. 96-28, 93 Stat. 76). Regulations providing guidance concerning 
18 U.S.C. 207 to these employees were last published in the 2008 edition 
of title 5 of the Code of Federal Regulations, revised as of January 1, 
2008.
    (c) Employees terminating prior to July 1, 1979. Former employees 
who terminated service prior to July 1, 1979, are subject to the 
provisions of 18 U.S.C. 207 as enacted in 1962 by the Act of October 23, 
1962, Public Law 87-849, 76 Stat. 1123.

    Note to Sec.  2641.102: The provisions of this part 2641 reflect 
amendments to 18 U.S.C. 207 enacted subsequent to the Ethics Reform Act 
of 1989 and before July 25, 2008. An employee who terminated Government 
service (or service in a ``senior'' or ``very senior'' employee 
position) between January 1, 1991, and July 25, 2008 may have become 
subject, upon termination, to a version of the statute that existed 
prior to the effective date of one or more of those amendments. Those 
amendments concerned: (1) changes, effective in 1990, 1996, and 2004 
concerning the rate of basic pay triggering ``senior employee'' status 
for purposes of section 207(c); (2) the reinstatement and subsequent 
amendment of the Presidential waiver authority in section 207(k); (3) 
the length of the restriction set forth in section 207(f) as applied to 
a former United States Trade Representative or Deputy United States 
Trade Representative; (4) the addition of section 207(j)(7), an 
exception to section 207(c) and (d); (5) a change to section 
207(j)(2)(B), an exception to section 207(c) and (d); (6) the addition 
of assignees under the Information Technology Exchange Program to the 
categories of ``senior employee'' for purposes of section 207(c); (7) 
the addition of section 207(l), applicable to former private sector 
assignees under the Information Technology Exchange Program; (8) a 
change to the length of the restriction set forth in section 207(d); and 
(9) the addition of a cross-reference in section 207(j)(1)(B) to a 
revised exception in the Indian Self-Determination and Education 
Assistance Act.



Sec.  2641.103  Enforcement and penalties.

    (a) Enforcement. Criminal and civil enforcement of the provisions of 
18 U.S.C. 207 is the responsibility of the Department of Justice. An 
agency is required to report to the Attorney General any information, 
complaints or allegations of possible criminal conduct in violation of 
title 18 of the United States Code, including possible violations of 
section 207 by former officers and employees. See 28 U.S.C. 535. When a 
possible violation of section 207 is referred to the Attorney General, 
the referring agency shall concurrently notify the Director of the 
Office of Government Ethics of the referral in accordance with 5 CFR 
2638.603.
    (b) Penalties and injunctions. 18 U.S.C. 216 provides for the 
imposition of one or more of the following penalties and injunctions for 
a violation of section 207:
    (1) Criminal penalties. 18 U.S.C. 216(a) sets forth the maximum 
imprisonment terms for felony and misdemeanor violations of section 207. 
Section 216(a) also provides for the imposition of criminal fines for 
violations of section 207. For the amount of the criminal fines that may 
be imposed, see 18 U.S.C. 3571.
    (2) Civil penalties. 18 U.S.C. 216(b) authorizes the Attorney 
General to take civil actions to impose civil penalties for violations 
of section 207 and sets forth the amounts of the civil fines.
    (3) Injunctive relief. 18 U.S.C. 216(c) authorizes the Attorney 
General to seek an order from a United States District Court to prohibit 
a person from engaging in conduct which violates section 207.
    (c) Other relief. In addition to any other remedies provided by law, 
the

[[Page 714]]

United States may, pursuant to 18 U.S.C. 218, void or rescind contracts, 
transactions, and other obligations of the United States in the event of 
a final conviction pursuant to section 207, and recover the amount 
expended or the thing transferred or its reasonable value.

    Note to Sec.  2641.103: A person or entity who aids, abets, 
counsels, commands, induces, or procures commission of a violation of 
section 207 is punishable as a principal under 18 U.S.C. 2.



Sec.  2641.104  Definitions.

    For purposes of this part:
    Agency means any department, independent establishment, commission, 
administration, authority, board or bureau of the United States or 
Government corporation. The term includes any independent agency not in 
the legislative or judicial branches.
    Agency ethics official means the designated agency ethics official 
(DAEO) or the alternate DAEO, appointed in accordance with 5 CFR 
2638.202(b), and any deputy ethics official described in 5 CFR 2638.204.
    Department means one of the executive departments listed in 5 U.S.C. 
101.
    Designated agency ethics official (DAEO) means the official 
designated under 5 CFR 2638.201 to coordinate and manage an agency's 
ethics program.
    Employee means, for purposes of determining the individuals subject 
to 18 U.S.C. 207, any officer or employee of the executive branch or any 
independent agency that is not a part of the legislative or judicial 
branches. The term does not include the President or the Vice President, 
an enlisted member of the Armed Forces, or an officer or employee of the 
District of Columbia. The term includes an individual appointed as an 
employee or detailed to the Federal Government under the 
Intergovernmental Personnel Act (5 U.S.C. 3371-3376) or specifically 
subject to section 207 under the terms of another statute. It 
encompasses senior employees, very senior employees, special Government 
employees, and employees serving without compensation. (This term is 
redefined elsewhere in this part, as necessary, when the term is used 
for other purposes.)
    Executive branch includes an executive department as defined in 5 
U.S.C. 101, a Government corporation, an independent establishment 
(other than the Government Accountability Office), the Postal Service, 
the Postal Regulatory Commission, and also includes any other entity or 
administrative unit in the executive branch.
    Former employee means an individual who has completed a period of 
service as an employee. Unless otherwise indicated, the term encompasses 
a former senior employee and a former very senior employee. An 
individual becomes a former employee at the termination of Government 
service, whereas an individual becomes a former senior employee or a 
former very senior employee at the termination of service in a senior or 
very senior employee position.

    Example 1 to the definition of former employee: An individual served 
as an employee of the Agency for International Development, an agency 
within the executive branch. Since he was, therefore, an ``employee'' as 
that term is defined in this section by virtue of having served in the 
executive branch, he became a ``former employee'' when he terminated 
Government service to pursue his hobbies.
    Example 2 to the definition of former employee: An individual served 
as an employee of the Tennessee Valley Authority (TVA). Since the TVA is 
a corporation owned or controlled by the Government of the United 
States, she served as an employee in the ``executive branch'' as that 
term is defined in this section. She became a ``former employee,'' 
therefore, when she terminated Government service to do some traveling.
    Example 3 to the definition of former employee: An individual 
terminated a GS-14 position in the executive branch to accept a position 
in the legislative branch. He did not become a ``former employee'' when 
he terminated service in the executive branch since he did not terminate 
``Government service'' as that term is defined in this section.
    Example 4 to the definition of former employee: An individual is 
appointed by the President to serve as a special Government employee on 
the Oncological Drug Advisory Committee at the Department of Health and 
Human Services. The special Government employee meets with the committee 
five days per year. She does not terminate Government service at the end 
of each meeting of the committee and therefore does not at that time 
become a ``former employee.'' She becomes a ``former employee'' when her 
appointment terminates, provided that she is

[[Page 715]]

not reappointed without break in service to the same or another Federal 
Government position.
    Example 5 to the definition of former employee: An individual is a 
Major in the U.S. Army Reserve. The Major earns points toward retirement 
by participating in weekend drills and performing active duty for 
training for two weeks each year. The Major is not a special Government 
employee when he performs weekend drills, but is considered to be one 
while on active duty for training. The Major is considered to be a 
``former employee'' when he terminates each period of active duty for 
training.
    Example 6 to the definition of former employee: A foreign service 
officer served as a ``senior employee'' of the Department of State. 
After retiring, and with no break in service, he accepted a civil 
service appointment on a temporary basis, at the GS-15 level. Since he 
did not terminate Government service, he did not become a ``former 
employee'' when he retired from the foreign service. He did, however, 
become a ``former senior employee.''

    Former senior employee is an individual who terminates service in a 
senior employee position (without successive Government service in 
another senior position).
    Former very senior employee is an individual who terminates service 
in a very senior employee position (without successive Government 
service in another very senior employee position).
    Government corporation means, for purposes of determining the 
individuals subject to 18 U.S.C. 207, a corporation that is owned or 
controlled by the Government of the United States. For purposes of 
identifying or determining individuals with whom post-employment contact 
is restricted, matters to which the United States is a party or has a 
direct and substantial interest, decisions which a former senior or very 
senior employee cannot seek to influence on behalf of a foreign entity, 
and whether a former employee is acting on behalf of the United States, 
it means a corporation in which the United States has a proprietary 
interest as distinguished from a custodial or incidental interest as 
shown by the functions, financing, control, and management of the 
corporation.
    Government service means a period of time during which an individual 
is employed by the Federal Government without a break in service. As 
applied to a special Government employee (SGE), Government service 
refers to the period of time covered by the individual's appointment or 
appointments (or other act evidencing employment with the Government), 
regardless of any interval or intervals between days actually served. 
See example 4 to the definition of former employee in this section. In 
the case of Reserve officers of the Armed Forces or officers of the 
National Guard of the United States who are not otherwise employees of 
the United States, Government service shall be considered to end upon 
the termination of a period of active duty or active duty for training 
during which they served as SGEs. See example 5 to the definition of 
former employee in this section.
    He, his, and him include she, hers, and her, and vice versa.
    Judicial branch means the Supreme Court of the United States; the 
United States courts of appeals; the United States district courts; the 
Court of International Trade; the United States bankruptcy courts; any 
court created pursuant to Article I of the United States Constitution, 
including the United States Court of Appeals for the Armed Forces, the 
United States Claims Court, and the United States Tax Court, but not 
including a court of a territory or possession of the United States; the 
Federal Judicial Center; and any other agency, office, or entity in the 
judicial branch.
    Legislative branch means the Congress; it also means the Office of 
the Architect of the Capitol, the United States Botanic Garden, the 
Government Accountability Office, the Government Printing Office, the 
Library of Congress, the Office of Technology Assessment, the 
Congressional Budget Office, the United States Capitol Police, and any 
other agency, entity, office, or commission established in the 
legislative branch.
    Person includes an individual, corporation, company, association, 
firm, partnership, society, joint stock company, or any other 
organization, institution, or entity, including any officer, employee, 
or agent of such person or entity. Unless otherwise indicated, the term 
is all-inclusive and applies to commercial ventures and nonprofit 
organizations as well as to foreign, State

[[Page 716]]

and local governments. The term includes the ``United States'' as that 
term is defined in Sec.  2641.301(a)(1).
    Senior employee means an employee, other than a very senior 
employee, who is:
    (1) Employed in a position for which the rate of pay is specified in 
or fixed according to 5 U.S.C. 5311-5318 (the Executive Schedule);
    (2) Employed in a position for which the employee is paid at a rate 
of basic pay which is equal to or greater than 86.5 percent of the rate 
of basic pay for level II of the Executive Schedule; or, for a period of 
two years following November 24, 2003, was employed on November 23, 2003 
in a position for which the rate of basic pay was equal to or greater 
than the rate of basic pay payable for level 5 of the Senior Executive 
Service; for purposes of this paragraph, ``rate of basic pay'' does not 
include locality-based adjustments or additional pay such as bonuses, 
awards and various allowances;
    (3) Appointed by the President to a position under 3 U.S.C. 
105(a)(2)(B);
    (4) Appointed by the Vice President to a position under 3 U.S.C. 
106(a)(1)(B);
    (5) An active duty commissioned officer of the uniformed services 
serving in a position for which the pay grade (as specified in 37 U.S.C. 
201) is pay grade O-7 or above; or
    (6) Assigned from a private sector organization under chapter 37 of 
5 U.S.C. (Information Technology Exchange Program).

    Example 1 to the definition of senior employee: A former 
administrative law judge serves on a commission created within the 
executive branch to adjudicate certain claims arising from a recent 
military operation. The position is uncompensated but the judge receives 
travel expenses. The judge is not employed in a position for which the 
rate of pay is specified in or fixed according to the Executive 
Schedule, is not serving in a position to which he was appointed by the 
President or Vice President under 3 U.S.C. 105(a)(2)(B) or 106(a)(1)(B), 
and is not employed in a position for which his rate of basic pay is 
equal to or greater than 86.5 percent of the rate of basic pay for level 
II of the Executive Schedule. He is not a senior employee.
    Example 2 to the definition of senior employee: A doctor is hired to 
fill a ``senior-level'' position and is initially compensated pursuant 
to 5 U.S.C. 5376 at a rate of basic pay slightly less than 86.5 percent 
of the rate of basic pay payable for level II of the Executive Schedule. 
If both the annual pay adjustment provided for in 5 CFR 534.504 and the 
periodic pay adjustment authorized in 5 CFR 534.503 result in a rate of 
basic pay equal to or above 86.5 percent of the rate of basic pay 
payable for level II of the Executive Schedule, the doctor will become a 
senior employee.
    Example 3 to the definition of senior employee: A criminal 
investigator in the Office of the Inspector General at the Department of 
Housing and Urban Development is a GS-15 employee but also receives Law 
Enforcement Availability Pay (LEAP), pursuant to 5 U.S.C. 5545a. Even if 
the sum of the employee's LEAP payment plus the employee's basic pay for 
GS-15 equaled 86.5 percent of the rate of basic pay for level II of the 
Executive Schedule, LEAP is not considered part of an employee's ``rate 
of basic pay'' for purposes of section 207(c), and therefore the 
employee would not be a ``senior employee.''

    Special Government employee means an officer or employee of the 
executive branch or an independent agency, as specified in 18 U.S.C. 
202(a). A special Government employee is retained, designated, 
appointed, or employed to perform temporary duties either on a full-time 
or intermittent basis, with or without compensation, for a period not to 
exceed 130 days during any period of 365 consecutive days.
    State means one of the fifty States of the United States and the 
District of Columbia, the Commonwealth of Puerto Rico, and any territory 
or possession of the United States.
    Very senior employee means an employee who is:
    (1) Employed in a position which is either listed in 5 U.S.C. 5312 
or for which the rate of pay is equal to the rate of pay payable for 
level I of the Executive Schedule;
    (2) Employed in a position in the Executive Office of the President 
which is either listed in 5 U.S.C. 5313 or for which the rate of pay is 
equal to the rate of pay payable for level II of the Executive Schedule;
    (3) Appointed by the President to a position under 3 U.S.C. 
105(a)(2)(A); or
    (4) Appointed by the Vice President to a position under 3 U.S.C. 
106(a)(1)(A).



Sec.  2641.105  Advice.

    (a) Agency ethics officials. Current or former employees or others 
who have

[[Page 717]]

questions about 18 U.S.C. 207 or about this part 2641 should seek advice 
from a designated agency ethics official or another agency ethics 
official. The agency in which an individual formerly served has the 
primary responsibility to provide oral or written advice concerning a 
former employee's post-employment activities. An agency ethics official, 
in turn, may consult with other agencies, such as those before whom a 
post-employment communication or appearance is contemplated, and with 
the Office of Government Ethics.
    (b) Office of Government Ethics. The Office of Government Ethics 
(OGE) will provide advice to agency ethics officials and others 
concerning 18 U.S.C. 207 and this part 2641. OGE may provide advice 
orally or through issuance of a written advisory opinion and shall, as 
appropriate, consult with the agency or agencies concerned and with the 
Department of Justice.
    (c) Effect of advice. Reliance on the oral or written advice of an 
agency ethics official or the OGE cannot ensure that a former employee 
will not be prosecuted for a violation of 18 U.S.C. 207. However, good 
faith reliance on such advice is a factor that may be taken into account 
by the Department of Justice (DOJ) in the selection of cases for 
prosecution. In the case in which OGE issues a formal advisory opinion 
in accordance with subpart C of 5 CFR part 2638, the DOJ will not 
prosecute an individual who acted in good faith in accordance with that 
opinion. See 5 CFR 2638.309.
    (d) Contacts to seek advice. A former employee will not be deemed to 
act on behalf of any other person in violation of 18 U.S.C. 207 when he 
contacts an agency ethics official or other employee of the United 
States for the purpose of seeking guidance concerning the applicability 
or meaning of section 207 as applied to his own activities.
    (e) No personal attorney-client privilege. A current or former 
employee who discloses information to an agency ethics official, to a 
Government attorney, or to an employee of the Office of Government 
Ethics does not personally enjoy an attorney-client privilege with 
respect to such communications.



Sec.  2641.106  Applicability of certain provisions to Vice President.

    Subsections 207(d) (relating to restrictions on very senior 
personnel) and 207(f) (restrictions with regard to foreign entities) of 
title 18, United States Code, apply to a Vice President, to the same 
extent as they apply to employees and former employees covered by those 
provisions. See Sec. Sec.  2641.205 and 2641.206. There are no other 
restrictions in 18 U.S.C. 207 applicable to a Vice President.



                         Subpart B_Prohibitions



Sec.  2641.201  Permanent restriction on any former employee's representations 
to United States concerning particular matter in which the employee 
participated personally and substantially.

    (a) Basic prohibition of 18 U.S.C. 207(a)(1). No former employee 
shall knowingly, with the intent to influence, make any communication to 
or appearance before an employee of the United States on behalf of any 
other person in connection with a particular matter involving a specific 
party or parties, in which he participated personally and substantially 
as an employee, and in which the United States is a party or has a 
direct and substantial interest.
    (b) Exceptions and waivers. The prohibition of 18 U.S.C. 207(a)(1) 
does not apply to a former employee who is:
    (1) Acting on behalf of the United States. See Sec.  2641.301(a).
    (2) Acting as an elected State or local government official. See 
Sec.  2641.301(b).
    (3) Communicating scientific or technological information pursuant 
to procedures or certification. See Sec.  2641.301(e).
    (4) Testifying under oath. See Sec.  2641.301(f). (Note that this 
exception from Sec.  2641.201 is generally not available for expert 
testimony. See Sec.  2641.301(f)(2).)
    (5) Acting on behalf of an international organization pursuant to a 
waiver. See Sec.  2641.301(h).
    (6) Acting as an employee of a Government-owned, contractor-operated 
entity pursuant to a waiver. See Sec.  2641.301(i).

[[Page 718]]

    (c) Commencement and length of restriction. 18 U.S.C. 207(a)(1) is a 
permanent restriction that commences upon an employee's termination from 
Government service. The restriction lasts for the life of the particular 
matter involving specific parties in which the employee participated 
personally and substantially.
    (d) Communication or appearance--(1) Communication. A former 
employee makes a communication when he imparts or transmits information 
of any kind, including facts, opinions, ideas, questions or direction, 
to an employee of the United States, whether orally, in written 
correspondence, by electronic media, or by any other means. This 
includes only those communications with respect to which the former 
employee intends that the information conveyed will be attributed to 
himself, although it is not necessary that any employee of the United 
States actually recognize the former employee as the source of the 
information.
    (2) Appearance. A former employee makes an appearance when he is 
physically present before an employee of the United States, in either a 
formal or informal setting. Although an appearance also may be 
accompanied by certain communications, an appearance need not involve 
any communication by the former employee.
    (3) Behind-the-scenes assistance. Nothing in this section prohibits 
a former employee from providing assistance to another person, provided 
that the assistance does not involve a communication to or an appearance 
before an employee of the United States.

    Example 1 to paragraph (d): A former employee of the Federal Bureau 
of Investigation makes a brief telephone call to a colleague in her 
former office concerning an ongoing investigation. She has made a 
communication. If she personally attends an informal meeting with agency 
personnel concerning the matter, she will have made an appearance.
    Example 2 to paragraph (d): A former employee of the National 
Endowment for the Humanities (NEH) accompanies other representatives of 
an NEH grantee to a meeting with the agency. Even if the former employee 
does not say anything at the meeting, he has made an appearance 
(although that appearance may or may not have been made with the intent 
to influence, depending on the circumstances).
    Example 3 to paragraph (d): A Government employee administered a 
particular contract for agricultural research with Q Company. Upon 
termination of her Government employment, she is hired by Q Company. She 
works on the matter covered by the contract, but has no direct contact 
with the Government. At the request of a company vice president, she 
prepares a paper describing the persons at her former agency who should 
be contacted and what should be said to them in an effort to increase 
the scope of funding of the contract and to resolve favorably a dispute 
over a contract clause. She may do so.
    Example 4 to paragraph (d): A former employee of the National 
Institutes of Health (NIH) prepares an application for an NIH research 
grant on behalf of her university employer. The application is signed 
and submitted by another university officer, but it lists the former 
employee as the principal investigator who will be responsible for the 
substantive work under the grant. She has not made a communication. She 
also may sign an assurance to the agency that she will be personally 
responsible for the direction and conduct of the research under the 
grant, pursuant to Sec.  2641.201(e)(2)(iv). Moreover, she may 
personally communicate scientific or technological information to NIH 
concerning the application, provided that she does so under 
circumstances indicating no intent to influence the Government pursuant 
to Sec.  2641.201(e)(2) or she makes the communication in accordance 
with the exception for scientific or technological information in Sec.  
2641.301(e).
    Example 5 to paragraph (d): A former employee established a small 
government relations firm with a highly specialized practice in certain 
environmental compliance issues. She prepared a report for one of her 
clients, which she knew would be presented to her former agency by the 
client. The report is not signed by the former employee, but the 
document does bear the name of her firm. The former employee expects 
that it is commonly known throughout the industry and the agency that 
she is the author of the report. If the report were submitted to the 
agency, the former employee would be making a communication and not 
merely confining herself to behind-the-scenes assistance, because the 
circumstances indicate that she intended the information to be 
attributed to herself.

    (e) With the intent to influence--(1) Basic concept. The prohibition 
applies only to communications or appearances made by a former 
Government employee with the intent to influence the United States. A 
communication or appearance is made with the intent to

[[Page 719]]

influence when made for the purpose of:
    (i) Seeking a Government ruling, benefit, approval, or other 
discretionary Government action; or
    (ii) Affecting Government action in connection with an issue or 
aspect of a matter which involves an appreciable element of actual or 
potential dispute or controversy.

    Example 1 to paragraph (e)(1): A former employee of the 
Administration on Children and Families (ACF) signs a grant application 
and submits it to ACF on behalf of a nonprofit organization for which 
she now works. She has made a communication with the intent to influence 
an employee of the United States because her communication was made for 
the purpose of seeking a Government benefit.
    Example 2 to paragraph (e)(1): A former Government employee calls an 
agency official to complain about the auditing methods being used by the 
agency in connection with an audit of a Government contractor for which 
the former employee serves as a consultant. The former employee has made 
a communication with the intent to influence because his call was made 
for the purpose of seeking Government action in connection with an issue 
involving an appreciable element of dispute.

    (2) Intent to influence not present. Certain communications to and 
appearances before employees of the United States are not made with the 
intent to influence, within the meaning of paragraph (e)(1) of this 
section, including, but not limited to, communications and appearances 
made solely for the purpose of:
    (i) Making a routine request not involving a potential controversy, 
such as a request for publicly available documents or an inquiry as to 
the status of a matter;
    (ii) Making factual statements or asking factual questions in a 
context that involves neither an appreciable element of dispute nor an 
effort to seek discretionary Government action, such as conveying 
factual information regarding matters that are not potentially 
controversial during the regular course of performing a contract;
    (iii) Signing and filing the tax return of another person as 
preparer;
    (iv) Signing an assurance that one will be responsible as principal 
investigator for the direction and conduct of research under a Federal 
grant (see example 4 to paragraph (d) of this section);
    (v) Filing a Securities and Exchange Commission (SEC) Form 10-K or 
similar disclosure forms required by the SEC;
    (vi) Making a communication, at the initiation of the Government, 
concerning work performed or to be performed under a Government contract 
or grant, during a routine Government site visit to premises owned or 
occupied by a person other than the United States where the work is 
performed or would be performed, in the ordinary course of evaluation, 
administration, or performance of an actual or proposed contract or 
grant; or
    (vii) Purely social contacts (see example 4 to paragraph (f) of this 
section).

    Example 1 to paragraph (e)(2): A former Government employee calls an 
agency to ask for the date of a scheduled public hearing on her client's 
license application. This is a routine request not involving a potential 
controversy and is not made with the intent to influence.
    Example 2 to paragraph (e)(2): In the previous example, the agency's 
hearing calendar is quite full, as the agency has a significant backlog 
of license applications. The former employee calls a former colleague at 
the agency to ask if the hearing date for her client could be moved up 
on the schedule, so that her client can move forward with its business 
plans more quickly. This is a communication made with the intent to 
influence.
    Example 3 to paragraph (e)(2): A former employee of the Department 
of Defense (DOD) now works for a firm that has a DOD contract to produce 
an operator's manual for a radar device used by DOD. In the course of 
developing a chapter about certain technical features of the device, the 
former employee asks a DOD official certain factual questions about the 
device and its properties. The discussion does not concern any matter 
that is known to involve a potential controversy between the agency and 
the contractor. The former employee has not made a communication with 
the intent to influence.
    Example 4 to paragraph (e)(2): A former medical officer of the Food 
and Drug Administration (FDA) sends a letter to the agency in which he 
sets out certain data from safety and efficacy tests on a new drug for 
which his employer, ABC Drug Co., is seeking FDA approval. Even if the 
letter is confined to arguably ``factual'' matters, such as synopses of 
data from clinical trials, the communication is made for the purpose of 
obtaining a

[[Page 720]]

discretionary Government action,i.e., approval of a new drug. Therefore, 
this is a communication made with the intent to influence.
    Example 5 to paragraph (e)(2): A former Government employee now 
works for a management consulting firm, which has a Government contract 
to produce a study on the efficiency of certain agency operations. Among 
other things, the contract calls for the contractor to develop a range 
of alternative options for potential restructuring of certain internal 
Government procedures. The former employee would like to meet with 
agency representatives to present a tentative list of options developed 
by the contractor. She may not do so. There is a potential for 
controversy between the Government and the contractor concerning the 
extent and adequacy of any options presented, and, moreover, the 
contractor may have its own interest in emphasizing certain options as 
opposed to others because some options may be more difficult and 
expensive for the contractor to develop fully than others.
    Example 6 to paragraph (e)(2): A former employee of the Internal 
Revenue Service (IRS) prepares his client's tax return, signs it as 
preparer, and mails it to the IRS. He has not made a communication with 
the intent to influence. In the event that any controversy should arise 
concerning the return, the former employee may not represent the client 
in the proceeding, although he may answer direct factual questions about 
the records he used to compile figures for the return, provided that he 
does not argue any theories or positions to justify the use of one 
figure rather than another.
    Example 7 to paragraph (e)(2): An agency official visits the 
premises of a prospective contractor to evaluate the testing procedure 
being proposed by the contractor for a research contract on which it has 
bid. A former employee of the agency, now employed by the contractor, is 
the person most familiar with the technical aspects of the proposed 
testing procedure. The agency official asks the former employee about 
certain technical features of the equipment used in connection with the 
testing procedure. The former employee may provide factual information 
that is responsive to the questions posed by the agency official, as 
such information is requested by the Government under circumstances for 
its convenience in reviewing the bid. However, the former employee may 
not argue for the appropriateness of the proposed testing procedure or 
otherwise advocate any position on behalf of the contractor.

    (3) Change in circumstances. If, at any time during the course of a 
communication or appearance otherwise permissible under paragraph (e)(2) 
of this section, it becomes apparent that circumstances have changed 
which would indicate that any further communication or appearance would 
be made with the intent to influence, the former employee must refrain 
from such further communication or appearance.

    Example 1 to paragraph (e)(3): A former Government employee 
accompanies another employee of a contractor to a routine meeting with 
agency officials to deliver technical data called for under a Government 
contract. During the course of the meeting, an unexpected dispute arises 
concerning certain terms of the contract. The former employee may not 
participate in any discussion of this issue. Moreover, if the 
circumstances clearly indicate that even her continued presence during 
this discussion would be an appearance made with the intent to 
influence, she should excuse herself from the meeting.

    (4) Mere physical presence intended to influence. Under some 
circumstances, a former employee's mere physical presence, without any 
communication by the employee concerning any material issue or 
otherwise, may constitute an appearance with the intent to influence an 
employee of the United States. Relevant considerations include such 
factors as whether:
    (i) The former employee has been given actual or apparent authority 
to make any decisions, commitments, or substantive arguments in the 
course of the appearance;
    (ii) The Government employee before whom the appearance is made has 
substantive responsibility for the matter and does not simply perform 
ministerial functions, such as the acceptance of paperwork;
    (iii) The former employee's presence is relatively prominent;
    (iv) The former employee is paid for making the appearance;
    (v) It is anticipated that others present at the meeting will make 
reference to the views or past or present work of the former employee;
    (vi) Circumstances do not indicate that the former employee is 
present merely for informational purposes, for example, merely to listen 
and record information for later use;
    (vii) The former employee has entered a formal appearance in 
connection with a legal proceeding at which he is present; and
    (viii) The appearance is before former subordinates or others in the 
same

[[Page 721]]

chain of command as the former employee.

    Example 1 to paragraph (e)(4): A former Regional Administrator of 
the Occupational Safety and Health Administration (OSHA) becomes a 
consultant for a company being investigated for possible enforcement 
action by the regional OSHA office. She is hired by the company to 
coordinate and guide its response to the OSHA investigation. She 
accompanies company officers to an informal meeting with OSHA, which is 
held for the purpose of airing the company's explanation of certain 
findings in an adverse inspection report. The former employee is 
introduced at the meeting as the company's compliance and governmental 
affairs adviser, but she does not make any statements during the meeting 
concerning the investigation. She is paid a fee for attending this 
meeting. She has made an appearance with the intent to influence.
    Example 2 to paragraph (e)(4): A former employee of an agency now 
works for a manufacturer that seeks agency approval for a new product. 
The agency convenes a public advisory committee meeting for the purpose 
of receiving expert advice concerning the product. Representatives of 
the manufacturer will make an extended presentation of the data 
supporting the application for approval, and a special table has been 
reserved for them in the meeting room for this purpose. The former 
employee does not participate in the manufacturer's presentation to the 
advisory committee and does not even sit in the section designated for 
the manufacturer. Rather, he sits in the back of the room in a large 
area reserved for the public and the media. The manufacturer's speakers 
make no reference to the involvement or views of the former employee 
with respect to the matter. Even though the former employee may be 
recognized in the audience by certain agency employees, he has not made 
an appearance with the intent to influence because his presence is 
relatively inconspicuous and there is little to identify him with the 
manufacturer or the advocacy of its representatives at the meeting.

    (f) To or before an employee of the United States--(1) Employee of 
the United States. For purposes of this paragraph, an ``employee of the 
United States'' means the President, the Vice President, and any current 
Federal employee (including an individual appointed as an employee or 
detailed to the Federal Government under the Intergovernmental Personnel 
Act (5 U.S.C. 3371-3376)) who is detailed to or employed by any:
    (i) Agency (including a Government corporation);
    (ii) Independent agency in the executive, legislative, or judicial 
branch;
    (iii) Federal court; or
    (iv) Court-martial.
    (2) To or before. Except as provided in paragraph (f)(3) of this 
section, a communication ``to'' or appearance ``before'' an employee of 
the United States is one:
    (i) Directed to and received by an entity specified in paragraphs 
(f)(1)(i) through (f)(1)(iv) of this section even though not addressed 
to a particular employee, e.g., as when a former employee mails 
correspondence to an agency but not to any named employee; or
    (ii) Directed to and received by an employee in his capacity as an 
employee of an entity specified in paragraphs (f)(1)(i) through 
(f)(1)(iv) of this section, e.g., as when a former employee directs 
remarks to an employee representing the United States as a party or 
intervenor in a Federal or non-Federal judicial proceeding. A former 
employee does not direct his communication or appearance to a bystander 
who merely happens to overhear the communication or witness the 
appearance.
    (3) Public commentary. (i) A former employee who addresses a public 
gathering or a conference, seminar, or similar forum as a speaker or 
panel participant will not be considered to be making a prohibited 
communication or appearance if the forum:
    (A) Is not sponsored or co-sponsored by an entity specified in 
paragraphs (f)(1)(i) through (f)(1)(iv) of this section;
    (B) Is attended by a large number of people; and
    (C) A significant proportion of those attending are not employees of 
the United States.
    (ii) In the circumstances described in paragraph (f)(3)(i) of this 
section, a former employee may engage in exchanges with any other 
speaker or with any member of the audience.
    (iii) A former employee also may permit the broadcast or publication 
of a commentary provided that it is broadcast or appears in a newspaper, 
periodical, or similar widely available publication.


[[Page 722]]


    Example 1 to paragraph (f): A Federal Trade Commission (FTC) 
employee participated in the FTC's decision to initiate an enforcement 
proceeding against a particular company. After terminating Government 
service, the former employee is hired by the company to lobby key 
Members of Congress concerning the necessity of the proceeding. He may 
contact Members of Congress or their staff since a communication to or 
appearance before such persons is not made to or before an ``employee of 
the United States'' as that term is defined in paragraph (f)(1) of this 
section.
    Example 2 to paragraph (f): In the previous example, the former FTC 
employee arranges to meet with a Congressional staff member to discuss 
the necessity of the proceeding. A current FTC employee is invited by 
the staff member to attend and is authorized by the FTC to do so in 
order to present the agency's views. The former employee may not argue 
his new employer's position at that meeting since his arguments would 
unavoidably be directed to the FTC employee in his capacity as an 
employee of the FTC.
    Example 3 to paragraph (f): The Department of State granted a waiver 
pursuant to 18 U.S.C. 208(b)(1) to permit one of its employees to serve 
in his official capacity on the Board of Directors of a private 
association. The employee participates in a Board meeting to discuss 
what position the association should take concerning the award of a 
recent contract by the Department of Energy (DOE). When a former DOE 
employee addresses the Board to argue that the association should object 
to the award of the contract, she is directing her communication to a 
Department of State employee in his capacity as an employee of the 
Department of State.
    Example 4 to paragraph (f): A Federal Communications Commission 
(FCC) employee participated in a proceeding to review the renewal of a 
license for a television station. After terminating Government service, 
he is hired by the company that holds the license. At a cocktail party, 
the former employee meets his former supervisor who is still employed by 
the FCC and begins to discuss the specifics of the license renewal case 
with him. The former employee is directing his communication to an FCC 
employee in his capacity as an employee of the FCC. Moreover, as the 
conversation concerns the license renewal matter, it is not a purely 
social contact and satisfies the element of the intent to influence the 
Government within the meaning of paragraph (e) of this section.
    Example 5 to paragraph (f): A Federal Trade Commission economist 
participated in her agency's review of a proposed merger between two 
companies. After terminating Government service, she goes to work for a 
trade association that is interested in the proposed merger. She would 
like to speak about the proposed merger at a conference sponsored by the 
trade association. The conference is attended by 100 individuals, 50 of 
whom are employees of entities specified in paragraphs (f)(1)(i) through 
(f)(1)(iv) of this section. The former employee may speak at the 
conference and may engage in a discussion of the merits of the proposed 
merger in response to a question posed by a Department of Justice 
employee in attendance.
    Example 6 to paragraph (f): The former employee in the previous 
example may, on behalf of her employer, write and permit publication of 
an op-ed piece in a metropolitan newspaper in support of a particular 
resolution of the merger proposal.
    Example 7 to paragraph (f): ABC Company has a contract with the 
Department of Energy which requires that contractor personnel work 
closely with agency employees in adjoining offices and work stations in 
the same building. After leaving the Department, a former employee goes 
to work for another corporation that has an interest in performing 
certain work related to the same contract, and he arranges a meeting 
with certain ABC employees at the building where he previously worked on 
the project. At the meeting, he asks the ABC employees to mention the 
interest of his new employer to the project supervisor, who is an agency 
employee. Moreover, he tells the ABC employees that they can say that he 
was the source of this information. The ABC employees in turn convey 
this information to the project supervisor. The former employee has made 
a communication to an employee of the Department of Energy. His 
communication is directed to an agency employee because he intended that 
the information be conveyed to an agency employee with the intent that 
it be attributed to himself, and the circumstances indicate such a close 
working relationship between contractor personnel and agency employees 
that it was likely that the information conveyed to contractor personnel 
would be received by the agency.

    (g) On behalf of any other person--(1) On behalf of. (i) A former 
employee makes a communication or appearance on behalf of another person 
if the former employee is acting as the other person's agent or attorney 
or if:
    (A) The former employee is acting with the consent of the other 
person, whether express or implied; and
    (B) The former employee is acting subject to some degree of control 
or direction by the other person in relation to the communication or 
appearance.
    (ii) A former employee does not act on behalf of another merely 
because his communication or appearance is consistent with the interests 
of the other

[[Page 723]]

person, is in support of the other person, or may cause the other person 
to derive a benefit as a consequence of the former employee's activity.
    (2) Any other person. The term ``person'' is defined in Sec.  
2641.104. For purposes of this paragraph, the term excludes the former 
employee himself or any sole proprietorship owned by the former 
employee.

    Example 1 to paragraph (g): An employee of the Bureau of Land 
Management (BLM) participated in the decision to grant a private company 
the right to explore for minerals on certain Federal lands. After 
retiring from Federal service to pursue her hobbies, the former employee 
becomes concerned that BLM is misinterpreting a particular provision of 
the lease. The former employee may contact a current BLM employee on her 
own behalf in order to argue that her interpretation is correct.
    Example 2 to paragraph (g): The former BLM employee from the 
previous example later joins an environmental organization as an 
uncompensated volunteer. The leadership of the organization authorizes 
the former employee to engage in any activity that she believes will 
advance the interests of the organization. She makes a communication on 
behalf of the organization when, pursuant to this authority, she writes 
to BLM on the organization's letterhead in order to present an 
additional argument concerning the interpretation of the lease 
provision. Although the organization did not direct her to send the 
specific communication to BLM, the circumstances establish that she made 
the communication with the consent of the organization and subject to a 
degree of control or direction by the organization.
    Example 3 to paragraph (g): An employee of the Administration for 
Children and Families wrote the statement of work for a cooperative 
agreement to be issued to study alternative workplace arrangements. 
After terminating Government service, the former employee joins a 
nonprofit group formed to promote family togetherness. He is asked by 
his former agency to attend a meeting in order to offer his 
recommendations concerning the ranking of the grant applications he had 
reviewed while still a Government employee. The management of the 
nonprofit group agrees to permit him to take leave to attend the meeting 
in order to present his personal views concerning the ranking of the 
applications. Although the former employee is a salaried employee of the 
non-profit group and his recommendations may be consistent with the 
group's interests, the circumstances establish that he did not make the 
communication subject to the control of the group.
    Example 4 to paragraph (g): An Assistant Secretary of Defense 
participated in a meeting at which a defense contractor pressed 
Department of Defense (DOD) officials to continue funding the 
contractor's sole source contract to develop the prototype of a 
specialized robot. After terminating Government service, the former 
Assistant Secretary approaches the contractor and suggests that she can 
convince her former DOD colleagues to pursue development of the 
prototype robot. The contractor agrees that the former Assistant 
Secretary's proposed efforts could be useful and asks her to set up a 
meeting with key DOD officials for the following week. Although the 
former Assistant Secretary is not an employee of the contractor, the 
circumstances establish that she is acting subject to some degree of 
control or direction by the contractor.

    (h) Particular matter involving a specific party or parties--(1) 
Basic concept. The prohibition applies only to communications or 
appearances made in connection with a ``particular matter involving a 
specific party or parties.'' Although the statute defines ``particular 
matter'' broadly to include ``any investigation, application, request 
for a ruling or determination, rulemaking, contract, controversy, claim, 
charge, accusation, arrest, or judicial or other proceeding,'' 18 U.S.C. 
207(i)(3), only those particular matters that involve a specific party 
or parties fall within the prohibition of section 207(a)(1). Such a 
matter typically involves a specific proceeding affecting the legal 
rights of the parties or an isolatable transaction or related set of 
transactions between identified parties, such as a specific contract, 
grant, license, product approval application, enforcement action, 
administrative adjudication, or court case.

    Example 1 to paragraph (h)(1): An employee of the Department of 
Housing and Urban Development approved a specific city's application for 
Federal assistance for a renewal project. After leaving Government 
service, she may not represent the city in relation to that application 
as it is a particular matter involving specific parties in which she 
participated personally and substantially as a Government employee.
    Example 2 to paragraph (h)(1): An attorney in the Department of 
Justice drafted provisions of a civil complaint that is filed in Federal 
court alleging violations of certain environmental laws by ABC Company. 
The attorney may not subsequently represent ABC before the Government in 
connection with the

[[Page 724]]

lawsuit, which is a particular matter involving specific parties.

    (2) Matters of general applicability not covered. Legislation or 
rulemaking of general applicability and the formulation of general 
policies, standards or objectives, or other matters of general 
applicability are not particular matters involving specific parties. 
International agreements, such as treaties and trade agreements, must be 
evaluated in light of all relevant circumstances to determine whether 
they should be considered particular matters involving specific parties; 
relevant considerations include such factors as whether the agreement 
focuses on a specific property or territory, a specific claim, or 
addresses a large number of diverse issues or economic interests.

    Example 1 to paragraph (h)(2): A former employee of the Mine Safety 
and Health Administration (MSHA) participated personally and 
substantially in the development of a regulation establishing certain 
new occupational health and safety standards for mine workers. Because 
the regulation applies to the entire mining industry, it is a particular 
matter of general applicability, not a matter involving specific 
parties, and the former employee would not be prohibited from making 
post-employment representations to the Government in connection with 
this regulation.
    Example 2 to paragraph (h)(2): The former employee in the previous 
example also assisted MSHA in its defense of a lawsuit brought by a 
trade association challenging the same regulation. This lawsuit is a 
particular matter involving specific parties, and the former MSHA 
employee would be prohibited from representing the trade association or 
anyone else in connection with the case.
    Example 3 to paragraph (h)(2): An employee of the National Science 
Foundation formulated policies for a grant program for organizations 
nationwide to produce science education programs targeting elementary 
school age children. She is not prohibited from later representing a 
specific organization in connection with its application for assistance 
under the program.
    Example 4 to paragraph (h)(2): An employee in the legislative 
affairs office of the Department of Homeland Security (DHS) drafted 
official comments submitted to Congress with respect to a pending 
immigration reform bill. After leaving the Government, he contacts DHS 
on behalf of a private organization seeking to influence the 
Administration to insist on certain amendments to the bill. This is not 
prohibited. Generally, legislation is not a particular matter involving 
specific parties. However, if the same employee had participated as a 
DHS employee in formulating the agency's position on proposed private 
relief legislation granting citizenship to a specific individual, this 
matter would involve specific parties, and the employee would be 
prohibited from later making representational contacts in connection 
with this matter.
    Example 5 to paragraph (h)(2): An employee of the Food and Drug 
Administration (FDA) drafted a proposed rule requiring all manufacturers 
of a particular type of medical device to obtain pre-market approval for 
their products. It was known at the time that only three or four 
manufacturers currently were marketing or developing such products. 
However, there was nothing to preclude other manufacturers from entering 
the market in the future. Moreover, the regulation on its face was not 
limited in application to those companies already known to be involved 
with this type of product at the time of promulgation. Because the 
proposed rule would apply to an open-ended class of manufacturers, not 
just specifically identified companies, it would not be a particular 
matter involving specific parties. After leaving Government, the former 
FDA employee would not be prohibited from representing a manufacturer in 
connection with the final rule or the application of the rule in any 
specific case.
    Example 6 to paragraph (h)(2): A former agency attorney participated 
in drafting a standard form contract and certain standard terms and 
clauses for use in all future contracts. The adoption of a standard form 
and language for all contracts is a matter of general applicability, not 
a particular matter involving specific parties. Therefore, the attorney 
would not be prohibited from representing another person in a dispute 
involving the application of one of the standard terms or clauses in a 
specific contract in which he did not participate as a Government 
employee.
    Example 7 to paragraph (h)(2): An employee of the Department of 
State participated in the development of the United States' position 
with respect to a proposed treaty with a foreign government concerning 
transfer of ownership with respect to a parcel of real property and 
certain operations there. After terminating Government employment, this 
individual seeks to represent the foreign government before the 
Department with respect to certain issues arising in the final stage of 
the treaty negotiations. This bilateral treaty is a particular matter 
involving specific parties, and the former employee had participated 
personally and substantially in this matter. Note also that certain 
employees may be subject to additional restrictions with respect to 
trade and treaty

[[Page 725]]

negotiations or representation of a foreign entity, pursuant to 18 
U.S.C. 207(b) and (f).
    Example 8 to paragraph (h)(2): The employee in the previous example 
participated for the Department in negotiations with respect to a 
multilateral trade agreement concerning tariffs and other trade 
practices in regard to various industries in 50 countries. The proposed 
agreement would provide various stages of implementation, with 
benchmarks for certain legislative enactments by signatory countries. 
These negotiations do not concern a particular matter involving specific 
parties. Even though the former employee would not be prohibited under 
section 207(a)(1) from representing another person in connection with 
this matter, she must comply with any applicable restrictions in 18 
U.S.C. 207(b) and (f).

    (3) Specific parties at all relevant times. The particular matter 
must involve specific parties both at the time the individual 
participated as a Government employee and at the time the former 
employee makes the communication or appearance, although the parties 
need not be identical at both times.

    Example 1 to paragraph (h)(3): An employee of the Department of 
Defense (DOD) performed certain feasibility studies and other basic 
conceptual work for a possible innovation to a missile system. At the 
time she was involved in the matter, DOD had not identified any 
prospective contractors who might perform the work on the project. After 
she left Government, DOD issued a request for proposals to construct the 
new system, and she now seeks to represent one of the bidders in 
connection with this procurement. She may do so. Even though the 
procurement is a particular matter involving specific parties at the 
time of her proposed representation, no parties to the matter had been 
identified at the time she participated in the project as a Government 
employee.
    Example 2 to paragraph (h)(3): A former employee in an agency 
inspector general's office conducted the first investigation of its kind 
concerning a particular fraudulent accounting practice by a grantee. 
This investigation resulted in a significant monetary recovery for the 
Government, as well as a settlement agreement in which the grantee 
agreed to use only certain specified accounting methods in the future. 
As a result of this case, the agency decided to issue a proposed rule 
expressly prohibiting the fraudulent accounting practice and requiring 
all grantees to use the same accounting methods that had been developed 
in connection with the settlement agreement. The former employee may 
represent a group of grantees submitting comments critical of the 
proposed regulation. Although the proposed regulation in some respects 
evolved from the earlier fraud case, which did involve specific parties, 
the subsequent rulemaking proceeding does not involve specific parties.

    (4) Preliminary or informal stages in a matter. When a particular 
matter involving specific parties begins depends on the facts. A 
particular matter may involve specific parties prior to any formal 
action or filings by the agency or other parties. Much of the work with 
respect to a particular matter is accomplished before the matter reaches 
its final stage, and preliminary or informal action is covered by the 
prohibition, provided that specific parties to the matter actually have 
been identified. With matters such as grants, contracts, and other 
agreements, ordinarily specific parties are first identified when 
initial proposals or indications of interest, such as responses to 
requests for proposals (RFP) or earlier expressions of interest, are 
received by the Government; in unusual circumstances, however, such as a 
sole source procurement or when there are sufficient indicia that the 
Government has explicitly identified a specific party in an otherwise 
ordinary prospective grant, contract, or agreement, specific parties may 
be identified even prior to the receipt of a proposal or expression of 
interest.

    Example 1 to paragraph (h)(4): A Government employee participated in 
internal agency deliberations concerning the merits of taking 
enforcement action against a company for certain trade practices. He 
left the Government before any charges were filed against the company. 
He has participated in a particular matter involving specific parties 
and may not represent another person in connection with the ensuing 
administrative or judicial proceedings against the company.
    Example 2 to paragraph (h)(4): A former special Government employee 
(SGE) of the Agency for Health Care Policy and Research served, before 
leaving the agency, on a ``peer review'' committee that made a 
recommendation to the agency concerning the technical merits of a 
specific grant proposal submitted by a university. The committee's 
recommendations are nonbinding and constitute only the first of several 
levels of review within the agency. Nevertheless, the SGE participated 
in a particular matter involving specific parties and may not represent 
the university in subsequent efforts to obtain the same grant.
    Example 3 to paragraph (h)(4): Prior to filing a product approval 
application with a regulatory agency, a company sought guidance

[[Page 726]]

from the agency. The company provided specific information concerning 
the product, including its composition and intended uses, safety and 
efficacy data, and the results and designs of prior studies on the 
product. After a series of meetings, the agency advised the company 
concerning the design of additional studies that it should perform in 
order to address those issues that the agency still believed were 
unresolved. Even though no formal application had been filed, this was a 
particular matter involving specific parties. The agency guidance was 
sufficiently specific, and it was clearly intended to address the 
substance of a prospective application and to guide the prospective 
applicant in preparing an application that would meet approval 
requirements. An agency employee who was substantially involved in 
developing this guidance could not leave the Government and represent 
the company when it submits its formal product approval application.
    Example 4 to paragraph (h)(4): A Government scientist participated 
in preliminary, internal deliberations about her agency's need for 
additional laboratory facilities. After she terminated Government 
service, the General Services Administration issued a request for 
proposals (RFP) seeking private architectural services to design the new 
laboratory space for the agency. The former employee may represent an 
architectural firm in connection with its response to the RFP. During 
the preliminary stage in which the former employee participated, no 
specific architectural firms had been identified for the proposed work.
    Example 5 to paragraph (h)(4): In the previous example, the proposed 
laboratory was to be an extension of a recently completed laboratory 
designed by XYZ Architectural Associates, and the Government had 
determined to pursue a sole source contract with that same firm for the 
new work. Even before the firm was contacted or expressed any interest 
concerning the sole source contract, the former employee participated in 
meetings in which specifications for a potential sole source contract 
with the firm were discussed. The former employee may not represent XYZ 
before the Government in connection with this matter.

    (5) Same particular matter--(i) General. The prohibition applies 
only to communications or appearances in connection with the same 
particular matter involving specific parties in which the former 
employee participated as a Government employee. The same particular 
matter may continue in another form or in part. In determining whether 
two particular matters involving specific parties are the same, all 
relevant factors should be considered, including the extent to which the 
matters involve the same basic facts, the same or related parties, 
related issues, the same confidential information, and the amount of 
time elapsed.
    (ii) Considerations in the case of contracts, grants, and other 
agreements. With respect to matters such as contracts, grants or other 
agreements:
    (A) A new matter typically does not arise simply because there are 
amendments, modifications, or extensions of a contract (or other 
agreement), unless there are fundamental changes in objectives or the 
nature of the matter;
    (B) Generally, successive or otherwise separate contracts (or other 
agreements) will be viewed as different matters from each other, absent 
some indication that one contract (or other agreement) contemplated the 
other or that both are in support of the same specific proceeding;
    (C) A contract is almost always a single particular matter involving 
specific parties. However, under compelling circumstances, distinct 
aspects or phases of certain large umbrella-type contracts, involving 
separate task orders or delivery orders, may be considered separate 
individual particular matters involving specific parties, if an agency 
determines that articulated lines of division exist. In making this 
determination, an agency should consider the relevant factors as 
described above. No single factor should be determinative, and any 
divisions must be based on the contract's characteristics, which may 
include, among other things, performance at different geographical 
locations, separate and distinct subject matters, the separate 
negotiation or competition of individual task or delivery orders, and 
the involvement of different program offices or even different agencies.

    Example 1 to paragraph (h)(5): An employee drafted one provision of 
an agency contract to procure new software. After she left Government, a 
dispute arose under the same contract concerning a provision that she 
did not draft. She may not represent the contractor in this dispute. The 
contract as a whole is the particular matter involving specific parties 
and may not be fractionalized into separate clauses for purposes of 
avoiding the prohibition of 18 U.S.C. 207(a)(1).
    Example 2 to paragraph (h)(5): In the previous example, a new 
software contract was

[[Page 727]]

awarded to the same contractor through a full and open competition, 
following the employee's departure from the agency. Although no major 
changes were made in the contract terms, the new contract is a different 
particular matter involving specific parties.
    Example 3 to paragraph (h)(5): A former special Government employee 
(SGE) recommended that his agency approve a new food additive made by 
Good Foods, Inc., on the grounds that it was proven safe for human 
consumption. The Healthy Food Alliance (HFA) sued the agency in Federal 
court to challenge the decision to approve the product. After leaving 
Government service, the former SGE may not serve as an expert witness on 
behalf of HFA in this litigation because it is a continuation of the 
same product approval matter in which he participated personally and 
substantially.
    Example 4 to paragraph (h)(5): An employee of the Department of the 
Army negotiated and supervised a contract with Munitions, Inc. for four 
million mortar shells meeting certain specifications. After the employee 
left Government, the Army sought a contract modification to add another 
one million shells. All specifications and contractual terms except 
price, quantity and delivery dates were identical to those in the 
original contract. The former Army employee may not represent Munitions 
in connection with this modification, because it is part of the same 
particular matter involving specific parties as the original contract.
    Example 5 to paragraph (h)(5): In the previous example, certain 
changes in technology occurred since the date of the original contract, 
and the proposed contract modifications would require the additional 
shells to incorporate new design features. Moreover, because of changes 
in the Army's internal system for storing and distributing shells to 
various locations, the modifications would require Munitions to deliver 
its product to several de-centralized destination points, thus requiring 
Munitions to develop novel delivery and handling systems and incur new 
transportation costs. The Army considers these modifications to be 
fundamental changes in the approach and objectives of the contract and 
may determine that these changes constitute a new particular matter.
    Example 6 to paragraph (h)(5): A Government employee reviewed and 
approved certain wiretap applications. The prosecution of a person 
overheard during the wiretap, although not originally targeted, must be 
regarded as part of the same particular matter as the original wiretap 
application. The reason is that the validity of the wiretap may be put 
in issue and many of the facts giving rise to the wiretap application 
would be involved.
    Example 7 to paragraph (h)(5): The Navy awards an indefinite 
delivery contract for environmental remediation services in the 
northeastern U.S. A Navy engineer is assigned as the Navy's technical 
representative on a task order for remediation of an oil spill at a Navy 
activity in Maine. The Navy engineer is personally and substantially 
involved in the task order (e.g., he negotiates the scope of work, the 
labor hours required, and monitors the contractor's performance). 
Following successful completion of the remediation of the oil spill in 
Maine, the Navy engineer leaves Government service and goes to work for 
the Navy's remediation contractor. In year two of the contract, the Navy 
issues a task order for the remediation of lead-based paint at a Navy 
housing complex in Connecticut. The contractor assigns the former Navy 
engineer to be its project manager for this task order, which will 
require him to negotiate with the Navy about the scope of work and the 
labor hours under the task order. Although the task order is placed 
under the same indefinite delivery contract (the terms of which remain 
unchanged), the Navy would be justified in determining that the lead-
based paint task order is a separate particular matter as it involves a 
different type of remediation, at a different location, and at a 
different time. Note, however, that the engineer in this example had not 
participated personally and substantially in the overall contract. Any 
former employee who had--for example, by participating personally and 
substantially in the initial award or subsequent oversight of the 
umbrella contract--will be deemed to have also participated personally 
and substantially in any individual particular matters resulting from 
the agency's determination that such contract is divisible.
    Example 8 to paragraph (h)(5): An agency contracts with Company A to 
install a satellite system connecting the headquarters office to each of 
its twenty field offices. Although the field offices are located at 
various locations throughout the country, each installation is 
essentially identical, with the terms of each negotiated in the main 
contract. Therefore, this contract should not be divided into separate 
particular matters involving specific parties.

    (i) Participated personally and substantially--(1) Participate. To 
``participate'' means to take an action as an employee through decision, 
approval, disapproval, recommendation, the rendering of advice, 
investigation, or other such action, or to purposefully forbear in order 
to affect the outcome of a matter. An employee can participate in 
particular matters that are pending other than in his own agency. An 
employee does not participate in a

[[Page 728]]

matter merely because he had knowledge of its existence or because it 
was pending under his official responsibility. An employee does not 
participate in a matter within the meaning of this section unless he 
does so in his official capacity.
    (2) Personally. To participate ``personally'' means to participate:
    (i) Directly, either individually or in combination with other 
persons; or
    (ii) Through direct and active supervision of the participation of 
any person he supervises, including a subordinate.
    (3) Substantially. To participate ``substantially'' means that the 
employee's involvement is of significance to the matter. Participation 
may be substantial even though it is not determinative of the outcome of 
a particular matter. However, it requires more than official 
responsibility, knowledge, perfunctory involvement, or involvement on an 
administrative or peripheral issue. A finding of substantiality should 
be based not only on the effort devoted to a matter, but also on the 
importance of the effort. While a series of peripheral involvements may 
be insubstantial, the single act of approving or participating in a 
critical step may be substantial. Provided that an employee participates 
in the substantive merits of a matter, his participation may be 
substantial even though his role in the matter, or the aspect of the 
matter in which he is participating, may be minor in relation to the 
matter as a whole. Participation in peripheral aspects of a matter or in 
aspects not directly involving the substantive merits of a matter (such 
as reviewing budgetary procedures or scheduling meetings) is not 
substantial.

    Example 1 to paragraph (i): A General Services Administration (GSA) 
attorney drafted a standard form contract and certain standard terms and 
clauses for use in future contracts. A contracting officer uses one of 
the standard clauses in a subsequent contract without consulting the GSA 
attorney. The attorney did not participate personally in the subsequent 
contract.
    Example 2 to paragraph (i): An Internal Revenue Service (IRS) 
attorney is neither in charge of nor does she have official 
responsibility for litigation involving a particular delinquent 
taxpayer. At the request of a co-worker who is assigned responsibility 
for the litigation, the lawyer provides advice concerning strategy 
during the discovery stage of the litigation. The IRS attorney 
participated personally in the litigation.
    Example 3 to paragraph (i): The IRS attorney in the previous example 
had no further involvement in the litigation. She participated 
substantially in the litigation notwithstanding that the post-discovery 
stages of the litigation lasted for ten years after the day she offered 
her advice.
    Example 4 to paragraph (i): The General Counsel of the Office of 
Government Ethics (OGE) contacts the OGE attorney who is assigned to 
evaluate all requests for ``certificates of divestiture'' to check on 
the status of the attorney's work with respect to all pending requests. 
The General Counsel makes no comment concerning the merits or relative 
importance of any particular request. The General Counsel did not 
participate substantially in any particular request when she checked on 
the status of all pending requests.
    Example 5 to paragraph (i): The OGE attorney in the previous example 
completes his evaluation of a particular certificate of divestiture 
request and forwards his recommendation to the General Counsel. The 
General Counsel forwards the package to the Director of OGE with a note 
indicating her concurrence with the attorney's recommendation. The 
General Counsel participated substantially in the request.
    Example 6 to paragraph (i): An International Trade Commission (ITC) 
computer programmer developed software designed to analyze data related 
to unfair trade practice complaints. At the request of an ITC employee 
who is considering the merits of a particular complaint, the programmer 
enters all the data supplied to her, runs the computer program, and 
forwards the results to the employee who will make a recommendation to 
an ITC Commissioner concerning the disposition of the complaint. The 
programmer did not participate substantially in the complaint.
    Example 7 to paragraph (i): The director of an agency office must 
concur in any decision to grant an application for technical assistance 
to certain nonprofit entities. When a particular application for 
assistance comes into her office and is presented to her for decision, 
she intentionally takes no action on it because she believes the 
application will raise difficult policy questions for her agency at this 
time. As a consequence of her inaction, the resolution of the 
application is deferred indefinitely. She has participated personally 
and substantially in the matter.

    (j) United States is a party or has a direct and substantial 
interest--(1) United States. For purposes of this paragraph, the 
``United States'' means:

[[Page 729]]

    (i) The executive branch (including a Government corporation);
    (ii) The legislative branch; or
    (iii) The judicial branch.
    (2) Party or direct and substantial interest. The United States may 
be a party to or have a direct and substantial interest in a particular 
matter even though it is pending in a non-Federal forum, such as a State 
court. The United States is neither a party to nor does it have a direct 
and substantial interest in a particular matter merely because a Federal 
statute is at issue or a Federal court is serving as the forum for 
resolution of the matter. When it is not clear whether the United States 
is a party to or has a direct and substantial interest in a particular 
matter, this determination shall be made in accordance with the 
following procedure:
    (i) Coordination by designated agency ethics official. The 
designated agency ethics official (DAEO) for the former employee's 
agency shall have the primary responsibility for coordinating this 
determination. When it appears likely that a component of the United 
States Government other than the former employee's former agency may be 
a party to or have a direct and substantial interest in the particular 
matter, the DAEO shall coordinate with agency ethics officials serving 
in those components.
    (ii) Agency determination. A component of the United States 
Government shall determine if it is a party to or has a direct and 
substantial interest in a matter in accordance with its own internal 
procedures. It shall consider all relevant factors, including whether:
    (A) The component has a financial interest in the matter;
    (B) The matter is likely to have an effect on the policies, 
programs, or operations of the component;
    (C) The component is involved in any proceeding associated with the 
matter, e.g., as by having provided witnesses or documentary evidence; 
and
    (D) The component has more than an academic interest in the outcome 
of the matter.

    Example 1 to paragraph (j): An attorney participated in preparing 
the Government's antitrust action against Z Company. After leaving the 
Government, she may not represent Z Company in a private antitrust 
action brought against it by X Company on the same facts involved in the 
Government action. Nor may she represent X Company in that matter. The 
interest of the United States in preventing both inconsistent results 
and the appearance of impropriety in the same factual matter involving 
the same party, Z Company, is direct and substantial. However, if the 
Government's antitrust investigation or case is closed, the United 
States no longer has a direct and substantial interest in the case.



Sec.  2641.202  Two-year restriction on any former employee's representations 
to United States concerning particular matter for which the employee 
had official responsibility.

    (a) Basic prohibition of 18 U.S.C. 207(a)(2). For two years after 
his Government service terminates, no former employee shall knowingly, 
with the intent to influence, make any communication to or appearance 
before an employee of the United States on behalf of any other person in 
connection with a particular matter involving a specific party or 
parties, in which the United States is a party or has a direct and 
substantial interest, and which such person knows or reasonably should 
know was actually pending under his official responsibility within the 
one-year period prior to the termination of his Government service.
    (b) Exceptions and waivers. The prohibition of 18 U.S.C. 207(a)(2) 
does not apply to a former employee who is:
    (1) Acting on behalf of the United States. See Sec.  2641.301(a).
    (2) Acting as an elected State or local government official. See 
Sec.  2641.301(b).
    (3) Communicating scientific or technological information pursuant 
to procedures or certification. See Sec.  2641.301(e).
    (4) Testifying under oath. See Sec.  2641.301(f).
    (5) Acting on behalf of an international organization pursuant to a 
waiver. See Sec.  2641.301(h).
    (6) Acting as an employee of a Government-owned, contractor-operated 
entity pursuant to a waiver. See Sec.  2641.301(i).
    (c) Commencement and length of restriction. 18 U.S.C. 207(a)(2) is a 
two-year restriction that commences upon an employee's termination from 
Government service. See example 9 to paragraph (j) of this section.

[[Page 730]]

    (d) Communication or appearance. See Sec.  2641.201(d).
    (e) With the intent to influence. See Sec.  2641.201(e).
    (f) To or before an employee of the United States See Sec.  
2641.201(f).
    (g) On behalf of any other person. See Sec.  2641.201(g).
    (h) Particular matter involving a specific party or parties. See 
Sec.  2641.201(h).
    (i) United States is a party or has a direct and substantial 
interest. See Sec.  2641.201(j).
    (j) Official responsibility--(1) Definition. ``Official 
responsibility'' means the direct administrative or operating authority, 
whether intermediate or final, and either exercisable alone or with 
others, and either personally or through subordinates, to approve, 
disapprove, or otherwise direct Government action. Ordinarily, the scope 
of an employee's official responsibility is determined by those 
functions assigned by statute, regulation, Executive order, job 
description, or delegation of authority. All particular matters under 
consideration in an agency are under the official responsibility of the 
agency head and each is under that of any intermediate supervisor who 
supervises a person, including a subordinate, who actually participates 
in the matter or who has been assigned to participate in the matter 
within the scope of his official duties. A nonsupervisory employee does 
not have official responsibility for his own assignments within the 
meaning of section 207(a)(2). Authority to direct Government action 
concerning only ancillary or nonsubstantive aspects of a matter, such as 
budgeting, equal employment, scheduling, or format requirements does 
not, ordinarily, constitute official responsibility for the matter as a 
whole.
    (2) Actually pending. A matter is actually pending under an 
employee's official responsibility if it has been referred to the 
employee for assignment or has been referred to or is under 
consideration by any person he supervises, including a subordinate. A 
matter remains pending even when it is not under ``active'' 
consideration. There is no requirement that the matter must have been 
pending under the employee's official responsibility for a certain 
length of time.
    (3) Temporary duties. An employee ordinarily acquires official 
responsibility for all matters within the scope of his position 
immediately upon assuming the position. However, under certain 
circumstances, an employee who is on detail (or other temporary 
assignment) to a position or who is serving in an ``acting'' status 
might not be deemed to have official responsibility for any matter by 
virtue of such temporary duties. Specifically, an employee performing 
such temporary duties will not thereby acquire official responsibility 
for matters within the scope of the position where he functions only in 
a limited ``caretaker'' capacity, as evidenced by such factors as:
    (i) Whether the employee serves in the position for no more than 60 
consecutive calendar days;
    (ii) Whether there is actually another incumbent for the position, 
who is temporarily absent, for example, on travel or leave;
    (iii) Whether there has been no event triggering the provisions of 5 
U.S.C. 3345(a); and
    (iv) Whether there are any other circumstances indicating that, 
given the temporary nature of the detail or acting status, there was no 
reasonable expectation of the full authority of the position.
    (4) Effect of leave status. The scope of an employee's official 
responsibility is not affected by annual leave, terminal leave, sick 
leave, excused absence, leave without pay, or similar absence from 
assigned duties.
    (5) Effect of disqualification. Official responsibility for a matter 
is not eliminated through self-disqualification or avoidance of personal 
participation in a matter, as when an employee is disqualified from 
participating in a matter in accordance with subparts D, E, or F of 5 
CFR part 2635 or part 2640. Official responsibility for a matter can be 
terminated by a formal modification of an employee's responsibilities, 
such as by a change in the employee's position description.
    (6) One-year period before termination. 18 U.S.C. 207(a)(2) applies 
only with respect to a particular matter that was actually pending under 
the former employee's official responsibility:

[[Page 731]]

    (i) At some time when the matter involved a specific party or 
parties; and
    (ii) Within his last year of Government service.
    (7) Knowledge of official responsibility. A communication or 
appearance is not prohibited unless, at the time of the proposed post-
employment communication or appearance, the former employee knows or 
reasonably should know that the matter was actually pending under his 
official responsibility within the one-year period prior to his 
termination from Government service. It is not necessary that a former 
employee have known during his Government service that the matter was 
actually pending under his official responsibility.

    Note to paragraph (j): 18 U.S.C. 207(a)(2) requires only that the 
former employee ``reasonably should know'' that the matter was pending 
under his official responsibility. Consequently, when the facts suggest 
that a particular matter involving specific parties could have been 
actually pending under his official responsibility, a former employee 
should seek information from an agency ethics official or other 
Government official to clarify his role in the matter. See Sec.  
2641.105 concerning advice.
    Example 1 to paragraph (j): The position description of an Assistant 
Secretary of Housing and Urban Development specifies that he is 
responsible for a certain class of grants. These grants are handled by 
an office under his supervision. As a practical matter, however, the 
Assistant Secretary has not become involved with any grants of this 
type. The Assistant Secretary has official responsibility for all such 
grants as specified in his position description.
    Example 2 to paragraph (j): A budget officer at the National Oceanic 
and Atmospheric Administration (NOAA) is asked to review NOAA's budget 
to determine if there are funds still available for the purchase of a 
new hurricane tracking device. The budget officer does not have official 
responsibility for the resulting contract even though she is responsible 
for all budget matters within the agency. The identification of funds 
for the contract is an ancillary aspect of the contract.
    Example 3 to paragraph (j): An Internal Revenue Service (IRS) 
auditor worked in the office responsible for the tax-exempt status of 
nonprofit organizations. Subsequently, he was transferred to the IRS 
office concerned with public relations. When contacted by an employee of 
his former office for advice concerning a matter involving a certain 
nonprofit organization, the auditor provides useful suggestions. The 
auditor's supervisor in the public relations office does not have 
official responsibility for the nonprofit matter since it does not fall 
within the scope of the auditor's current duties.
    Example 4 to paragraph (j): An information manager at the Central 
Intelligence Agency (CIA) assigns a nonsupervisory subordinate to 
research an issue concerning a request from a news organization for 
information concerning past agency activities. Before she commences any 
work on the assignment, the subordinate terminates employment with the 
CIA. The request was not pending under the subordinate's official 
responsibility since a non-supervisory employee does not have official 
responsibility for her own assignments. (Once the subordinate commences 
work on the assignment, she may be participating ``personally and 
substantially'' within the meaning of 18 U.S.C. 207(a)(1) and Sec.  
2641.201(i).)
    Example 5 to paragraph (j): A regional employee of the Federal 
Emergency Management Agency requests guidance from the General Counsel 
concerning a contractual dispute with Baker Company. The General Counsel 
immediately assigns the matter to a staff attorney whose workload can 
accommodate the assignment, then retires from Government two days later. 
Although the staff attorney did not retrieve the assignment from his in-
box prior to the General Counsel's departure, the Baker matter was 
actually pending under the General Counsel's official responsibility 
from the time the General Counsel received the request for guidance.
    Example 6 to paragraph (j): A staff attorney in the Federal 
Emergency Management Agency's Office of General Counsel is consulted by 
procurement officers concerning the correct resolution of a contractual 
matter involving Able Company. The attorney renders an opinion resolving 
the question. The same legal question arises later in several contracts 
with other companies but none of the disputes with such companies is 
referred to the Office of General Counsel. The General Counsel had 
official responsibility for the determination of the Able Company 
matter, but the subsequent matters were never actually pending under his 
official responsibility.
    Example 7 to paragraph (j): An employee of the National Endowment 
for the Humanities becomes ``acting'' Division Director of the Division 
of Education Programs when the Division Director is away from the office 
for three days to attend a conference. During those three days, the 
employee has authority to direct Government action in connection with 
many matters with which she ordinarily would have no involvement. 
However, in view of the brief time period and the fact that there 
remains an incumbent in the position of Division Director, the agency 
ethics

[[Page 732]]

official properly may determine that the acting official did not acquire 
official responsibility for all matters then pending in the Division.
    Example 8 to paragraph (j): A division director at the Food and Drug 
Administration disqualified himself from participating in the review of 
a drug for Alzheimer's disease, in accordance with subpart E of 5 CFR 
part 2635, because his brother headed the private sector team which 
developed the drug. The matter was instead assigned to the division 
director's deputy. The director continues to have official 
responsibility for review of the drug. The division director also would 
have retained official responsibility for the matter had he either asked 
his supervisor or another division director to oversee the matter.
    Example 9 to paragraph (j): The Deputy Secretary of a department 
terminates Government service to stay home with her newborn daughter. 
Four months later, she returns to the department to serve on an advisory 
committee as a special Government employee (SGE). After three months, 
she terminates Government service once again in order to accept a part-
time position with a public relations firm. The 18 U.S.C. 207(a)(2) bar 
commences when she resigns as Deputy Secretary and continues to run for 
two years. (Any action taken in carrying out official duties as a member 
of the advisory committee would be undertaken on behalf of the United 
States and would, therefore, not be restricted by 18 U.S.C. 207(a)(2). 
See Sec.  2641.301(a).) A second two-year restriction commences when she 
terminates from her second period of Government service but it applies 
only with respect to any particular matter actually pending under her 
official responsibility during her three-month term as an SGE.



Sec.  2641.203  One-year restriction on any former employee's representations, 
aid, or advice concerning ongoing trade or treaty negotiation.

    (a) Basic prohibition of 18 U.S.C. 207(b). For one year after his 
Government service terminates, no former employee shall, on the basis of 
``covered information,'' knowingly represent, aid, or advise any other 
person concerning an ongoing trade or treaty negotiation in which, 
during his last year of Government service, he participated personally 
and substantially as an employee. ``Covered information'' refers to 
agency records which were accessible to the employee which he knew or 
should have known were designated as exempt from disclosure under the 
Freedom of Information Act (5 U.S.C. 552).
    (b) Exceptions and waivers. The prohibition of 18 U.S.C. 207(b) does 
not apply to a former employee who is:
    (1) Acting on behalf of the United States. See Sec.  2641.301(a).
    (2) Acting as an elected State or local government official. See 
Sec.  2641.301(b).
    (3) Testifying under oath. See Sec.  2641.301(f).
    (4) Acting on behalf of an international organization pursuant to a 
waiver. See Sec.  2641.301(h).
    (5) Acting as an employee at a Government-owned, contractor-operated 
entity pursuant to a waiver. See Sec.  2641.301(i).
    (c) Commencement and length of restriction. 18 U.S.C. 207(b) 
commences upon an employee's termination from Government service. The 
restriction lasts for one year or until the termination of the 
negotiation, whichever occurs first.
    (d) Represent, aid, or advise. [Reserved]
    (e) Any other person. [Reserved]
    (f) On the basis of. [Reserved]
    (g) Covered information. [Reserved]
    (h) Ongoing trade or treaty negotiation. [Reserved]
    (i) Participated personally and substantially. [Reserved]



Sec.  2641.204  One-year restriction on any former senior employee's 
representations to former agency concerning any matter, regardless 
of prior involvement.

    (a) Basic prohibition of 18 U.S.C. 207(c). For one year after his 
service in a senior position terminates, no former senior employee may 
knowingly, with the intent to influence, make any communication to or 
appearance before an employee of an agency in which he served in any 
capacity within the one-year period prior to his termination from a 
senior position, if that communication or appearance is made on behalf 
of any other person in connection with any matter on which the former 
senior employee seeks official action by any employee of such agency. An 
individual who served in a ``very senior employee'' position is subject 
to the broader two-year restriction set forth in 18 U.S.C. 207(d) in 
lieu of that set forth in section 207(c). See Sec.  2641.205.
    (b) Exceptions and waivers. The prohibition of 18 U.S.C. 207(c) does 
not apply to a former senior employee who is:

[[Page 733]]

    (1) Acting on behalf of the United States. See Sec.  2641.301(a).
    (2) Acting as an elected State or local government official. See 
Sec.  2641.301(b).
    (3) Acting on behalf of specified entities. See Sec.  2641.301(c).
    (4) Making uncompensated statements based on special knowledge. See 
Sec.  2641.301(d).
    (5) Communicating scientific or technological information pursuant 
to procedures or certification. See Sec.  2641.301(e).
    (6) Testifying under oath. See Sec.  2641.301(f).
    (7) Acting on behalf of a candidate or political party. See Sec.  
2641.301(g).
    (8) Acting on behalf of an international organization pursuant to a 
waiver. See Sec.  2641.301(h).
    (9) Acting as an employee of a Government-owned, contractor-operated 
entity pursuant to a waiver. See Sec.  2641.301(i).
    (10) Subject to a waiver issued for certain positions. See Sec.  
2641.301(j).
    (c) Applicability to special Government employees and 
Intergovernmental Personnel Act appointees or detailees--(1) Special 
Government employees. (i) 18 U.S.C. 207(c) applies to an individual as a 
result of service as a special Government employee (SGE) who:
    (A) Served in a senior employee position while serving as an SGE; 
and
    (B) Served 60 or more days as an SGE during the one-year period 
before terminating service as a senior employee.
    (ii) Any day on which work is performed shall count toward the 60-
day threshold without regard to the number of hours worked that day or 
whether the day falls on a weekend or holiday. For purposes of 
determining whether an SGE's rate of basic pay is equal to or greater 
than 86.5 percent of the rate of basic pay for level II of the Executive 
Schedule, within the meaning of the definition of senior employee in 
Sec.  2641.104, the employee's hourly rate of pay (or daily rate divided 
by eight) shall be multiplied by 2087, the number of Federal working 
hours in one year. (In the case of a Reserve officer of the Armed Forces 
or an officer of the National Guard who is an SGE serving in a senior 
employee position, 18 U.S.C. 207(c) applies if the officer served 60 or 
more days as an SGE within the one-year period prior to his termination 
from a period of active duty or active duty for training.)
    (2) Intergovernmental Personnel Act appointees or detailees. 18 
U.S.C. 207(c) applies to an individual serving as a senior employee 
pursuant to an appointment or detail under the Intergovernmental 
Personnel Act, 5 U.S.C. 3371-3376. An individual is a senior employee if 
he received total pay from Federal or non-Federal sources equal to or 
greater than 86.5 percent of the rate of basic pay for level II of the 
Executive Schedule (exclusive of any reimbursement for a non-Federal 
employer's share of benefits not paid to the employee as salary), and:
    (i) The individual served in a Federal position ordinarily 
compensated at a rate equal to or greater than 86.5 percent of level II 
of the Executive Schedule, regardless of what portion of the pay is 
derived from Federal expenditures or expenditures by the individual's 
non-Federal employer;
    (ii) The individual received a direct Federal payment, pursuant to 5 
U.S.C. 3374(c)(1), that supplemented the salary that he received from 
his non-Federal employer; or
    (iii) The individual's non-Federal employer received Federal 
reimbursement equal to or greater than 86.5 percent of level II of the 
Executive Schedule.

    Example 1 to paragraph (c): An employee of a private research 
institution serves on an advisory committee that convenes periodically 
to discuss United States policy on foreign arms sales. The expert is 
compensated at a daily rate which is the equivalent of 86.5 percent of 
the rate of basic pay for a full-time employee at level II of the 
Executive Schedule. The individual serves two hours per day for 65 days 
before resigning from the advisory committee nine months later. The 
individual becomes subject to 18 U.S.C. 207(c) when she resigns from the 
advisory committee since she served 60 or more days as a special 
Government employee during the one-year period before terminating 
service as a senior employee.
    Example 2 to paragraph (c): An individual is detailed from a 
university to a Federal department under the Intergovernmental Personnel 
Act to do work that had previously been performed by a GS-15 employee. 
While on detail, the individual continues to receive pay from the 
university in an amount $5,000 less than 86.5 percent of the rate of 
basic pay

[[Page 734]]

for level II of the Executive Schedule. In addition, the department pays 
a $25,000 supplement directly to the individual, as authorized by 5 
U.S.C. 3374(c)(1). Since the employee's total pay is equal to or greater 
than 86.5 percent of the rate of basic pay for level II of the Executive 
Schedule, and a portion of that compensation is paid directly to the 
individual by the department, he becomes subject to 18 U.S.C. 207(c) 
when his detail ends.

    (d) Commencement and length of restriction. 18 U.S.C. 207(c) is a 
one-year restriction. The one-year period is measured from the date when 
the employee ceases to serve in a senior employee position, not from the 
termination of Government service, unless the two events occur 
simultaneously. (In the case of a Reserve officer of the Armed Forces or 
an officer of the National Guard who is a special Government employee 
serving in a senior employee position, section 207(c) is measured from 
the date when the officer terminates a period of active duty or active 
duty for training.)

    Example 1 to paragraph (d): An employee at the Department of Labor 
(DOL) serves in a senior employee position. He then accepts a GS-15 
position at the Federal Labor Relations Authority (FLRA) but terminates 
Government service six months later to accept a job with private 
industry. 18 U.S.C. 207(c) commences when he ceases to be a senior 
employee at DOL, even though he does not terminate Government service at 
that time. (Any action taken in carrying out official duties on behalf 
of FLRA while still employed by that agency would be undertaken on 
behalf of the United States and would, therefore, not be restricted by 
section 207(c). See Sec.  2641.301(a).)
    Example 2 to paragraph (d): In the previous example, the DOL 
employee accepts a senior employee position at FLRA rather than a GS-15 
position. The bar of section 207(c) commences when, six months later, he 
terminates service in the second senior employee position to accept a 
job with private industry. (The bar will apply with respect to both the 
DOL and FLRA. See paragraph (g) of Sec.  2641.204 and examples 2 and 3 
to that paragraph.)

    (e) Communication or appearance. See Sec.  2641.201(d).
    (f) With the intent to influence. See Sec.  2641.201(e).
    (g) To or before employee of former agency--(1) Employee. For 
purposes of this paragraph, a former senior employee may not contact:
    (i) Any current Federal employee of the former senior employee's 
``former agency'' as defined in paragraph (g)(2) of this section;
    (ii) An individual detailed under the Intergovernmental Personnel 
Act (5 U.S.C. 3371-3376) to the former senior employee's former agency;
    (iii) An individual detailed to the former senior employee's former 
agency from another department, agency or other entity, including 
agencies and entities within the legislative or judicial branches;
    (iv) An individual serving with the former senior employee's former 
agency as a collateral duty pursuant to statute or Executive order; and
    (v) In the case of a communication or appearance made by a former 
senior employee who is barred by 18 U.S.C. 207(c) from communicating to 
or appearing before the Executive Office of the President, the President 
and Vice President.
    (2) Former agency. The term ``agency'' is defined in Sec.  2641.104. 
Unless eligible to benefit from the designation of distinct and separate 
agency components as described in Sec.  2641.302, a former senior 
employee's former agency will ordinarily be considered to be the whole 
of any larger agency of which his former agency was a part on the date 
he terminated senior service.
    (i) One-year period before termination. 18 U.S.C. 207(c) applies 
with respect to agencies in which the former senior employee served 
within the one-year period prior to his termination from a senior 
employee position.
    (ii) Served in any capacity. Once the restriction commences, 18 
U.S.C. 207(c) applies with respect to any agency in which the former 
senior employee served in any capacity during the one-year period, 
regardless of his position, rate of basic pay, or pay grade.
    (iii) Multiple assignments. An employee can simultaneously serve in 
more than one agency. A former senior employee will be considered to 
have served in his own employing entity and in any entity to which he 
was detailed for any length of time or with which he was required to 
serve as a collateral duty pursuant to statute or Executive order.

[[Page 735]]

    (iv) Effect of organizational changes. If a former senior employee's 
former agency has been significantly altered by organizational changes 
after his termination from senior service, it may be necessary to 
determine whether a successor entity is the same agency as the former 
senior employee's former agency. The appropriate designated agency 
ethics official, in consultation with the Office of Government Ethics, 
shall identify the entity that is the individual's former agency. 
Whether a successor entity is the same as the former agency depends upon 
whether it has substantially the same organizational mission, the extent 
of the termination or dispersion of the agency's functions, and other 
factors as may be appropriate.
    (A) Agency abolished or substantially changed. If a successor entity 
is not identifiable as substantially the same agency from which the 
former senior employee terminated, the 18 U.S.C. 207(c) prohibition will 
not bar communications or appearances by the former senior employee to 
that successor entity.
    (B) Agency substantially the same. If a successor entity remains 
identifiable as substantially the same entity from which the former 
senior employee terminated, the 18 U.S.C. 207(c) bar will extend to the 
whole of the successor entity.
    (C) Employing entity is made separate. If an employing entity is 
made separate from an agency of which it was a part, but it remains 
identifiable as substantially the same entity from which the former 
senior employee terminated senior service before the entity was made 
separate, the 18 U.S.C. 207(c) bar will apply to a former senior 
employee of that entity only with respect to the new separate entity.
    (D) Component designations. If a former senior employee's former 
agency was a designated ``component'' within the meaning of Sec.  
2641.302 on the date of his termination as senior employee, see Sec.  
2641.302(g).
    (3) To or before. Except as provided in paragraph (g)(4) of this 
section, a communication ``to'' or appearance ``before'' an employee of 
a former senior employee's former agency is one:
    (i) Directed to and received by the former senior employee's former 
agency, even though not addressed to a particular employee; or
    (ii) Directed to and received by an employee of a former senior 
employee's former agency in his official capacity, including in his 
capacity as an employee serving in the agency on detail or, if pursuant 
to statute or Executive order, as a collateral duty. A former senior 
employee does not direct his communication or appearance to a bystander 
who merely happens to overhear the communication or witness the 
appearance.
    (4) Public commentary. (i) A former senior employee who addresses a 
public gathering or a conference, seminar, or similar forum as a speaker 
or panel participant will not be considered to make a prohibited 
communication or appearance if the forum:
    (A) Is not sponsored or co-sponsored by the former senior employee's 
former agency;
    (B) Is attended by a large number of people; and
    (C) A significant proportion of those attending are not employees of 
the former senior employee's former agency.
    (ii) In the circumstances described in paragraph (g)(4)(i) of this 
section, a former senior employee may engage in exchanges with any other 
speaker or with any member of the audience.
    (iii) A former senior employee also may permit the broadcast or 
publication of a commentary provided that it is broadcast or appears in 
a newspaper, periodical, or similar widely-available publication.

    Example 1 to paragraph (g): Two months after retiring from a senior 
employee position at the United States Department of Agriculture (USDA), 
the former senior employee is asked to represent a poultry producer in a 
compliance matter involving the producer's storage practices. The former 
senior employee may not represent the poultry producer before a USDA 
employee in connection with the compliance matter or any other matter in 
which official action is sought from the USDA. He has ten months 
remaining of the one-year bar which commenced upon his termination as a 
senior employee with the USDA.
    Example 2 to paragraph (g): An individual serves for several years 
at the Commodity Futures Trading Commission (CFTC) as a

[[Page 736]]

GS-15. With no break in service, she then accepts a senior employee 
position at the Export-Import Bank of the United States (Ex-Im Bank) 
where she remains for nine months until she leaves Government service in 
order to accept a position in the private sector. Since the individual 
served in both the CFTC and the Ex-Im Bank within her last year of 
senior service, she is barred by 18 U.S.C. 207(c) as to both agencies 
for one year commencing from her termination from the senior employee 
position at the Ex-Im Bank.
    Example 3 to paragraph (g): An individual serves for several years 
at the Securities and Exchange Commission (SEC) in a senior employee 
position. He terminates Government service in order to care for his 
parent who is recovering from heart surgery. Two months later, he 
accepts a senior employee position at the Overseas Private Investment 
Corporation (OPIC) where he remains for nine months until he leaves 
Government service in order to accept a position in the private sector. 
The 18 U.S.C. 207(c) bar commences when he resigns from the SEC and 
continues to run for one year. (Any action taken in carrying out 
official duties as an employee of OPIC would be undertaken on behalf of 
the United States and would, therefore, not be restricted by section 
207(c). See Sec.  2641.301(a).) A second one-year restriction commences 
when he resigns from OPIC. The second restriction will apply with 
respect to OPIC only. Upon his termination from the OPIC position, he 
will have one remaining month of the section 207(c) restriction arising 
from his termination of his SEC position. This remaining month of 
restriction will run concurrently with the first month of the one-year 
OPIC restriction.
    Example 4 to paragraph (g): An architect serves in a senior employee 
position in the Agency for Affordable Housing. Subsequent to her 
termination from the position, the agency is abolished and its functions 
are distributed among three other agencies within three departments, the 
Department of Housing and Urban Development, the Department of the 
Interior, and the Department of Justice. None of these successor 
entities is identifiable as substantially the same entity as the Agency 
for Affordable Housing, and, accordingly, the 18 U.S.C. 207(c) bar will 
not apply to the architect.
    Example 5 to paragraph (g): A chemist serves in a senior employee 
position in the Agency for Clean Rivers. Subsequent to his termination 
from the position, the mission of the Agency for Clean Rivers is 
expanded and it is renamed the Agency for Clean Water. A number of 
employees from the Agency for Marine Life are transferred to the 
reorganized agency. If it is determined that the Agency for Clean Water 
is substantially the same entity from which the chemist terminated, the 
section 207(c) bar will apply with respect to the chemist's contacts 
with all of the employees of the Agency for Clean Water, including those 
employees who recently transferred from the Agency for Marine Life. He 
would not be barred from contacting an employee serving in one of the 
positions that had been transferred from the Agency for Clean Rivers to 
the Agency for Clean Land.

    (h) On behalf of any other person. See Sec.  2641.201(g).
    (i) Matter on which former senior employee seeks official action--
(1) Seeks official action. A former senior employee seeks official 
action when the circumstances establish that he is making his 
communication or appearance for the purpose of inducing a current 
employee, as defined in paragraph (g) of this section, to make a 
decision or to otherwise act in his official capacity.
    (2) Matter. The prohibition on seeking official action applies with 
respect to any matter, including:
    (i) Any ``particular matter involving a specific party or parties'' 
as defined in Sec.  2641.201(h);
    (ii) The consideration or adoption of broad policy options that are 
directed to the interests of a large and diverse group of persons;
    (iii) A new matter that was not previously pending at or of interest 
to the former senior employee's former agency; and
    (iv) A matter pending at any other agency in the executive branch, 
an independent agency, the legislative branch, or the judicial branch.

    Example 1 to paragraph (i): A former senior employee at the National 
Capital Planning Commission (NCPC) wishes to contact a friend who still 
works at the NCPC to solicit a donation for a local charitable 
organization. The former senior employee may do so since the 
circumstances establish that he would not be making the communication 
for the purpose of inducing the NCPC employee to make a decision in his 
official capacity about the donation.
    Example 2 to paragraph (i): A former senior employee at the 
Department of Defense wishes to contact the Secretary of Defense to ask 
him if he would be interested in attending a cocktail party. At the 
party, the former senior employee would introduce the Secretary to 
several of the former senior employee's current business clients who 
have sought the introduction. The former senior employee and the 
Secretary do not have a history of socializing outside the office, the 
Secretary is in a position to affect the interests of the business 
clients, and all expenses

[[Page 737]]

associated with the party will be paid by the former senior employee's 
consulting firm. The former senior employee should not contact the 
Secretary. The circumstances do not establish that the communication 
would be made other than for the purpose of inducing the Secretary to 
make a decision in his official capacity about the invitation.
    Example 3 to paragraph (i): A former senior employee at the National 
Science Foundation (NSF) accepts a position as vice president of a 
company that was hurt by recent cuts in the defense budget. She contacts 
the NSF's Director of Legislative and Public Affairs to ask the Director 
to contact a White House official in order to press the need for a new 
science policy to benefit her company. The former senior employee made a 
communication for the purpose of inducing the NSF employee to make a 
decision in his official capacity about contacting the White House.



Sec.  2641.205  Two-year restriction on any former very senior employee's 
representations to former agency or certain officials concerning any matter, 
regardless of prior involvement.

    (a) Basic prohibition of 18 U.S.C. 207(d). For two years after his 
service in a very senior employee position terminates, no former very 
senior employee shall knowingly, with the intent to influence, make any 
communication to or appearance before any official appointed to an 
Executive Schedule position listed in 5 U.S.C. 5312-5316 or before any 
employee of an agency in which he served as a very senior employee 
within the one-year period prior to his termination from a very senior 
employee position, if that communication or appearance is made on behalf 
of any other person in connection with any matter on which the former 
very senior employee seeks official action by any official or employee.
    (b) Exceptions and waivers. The prohibition of 18 U.S.C. 207(d) does 
not apply to a former very senior employee who is:
    (1) Acting on behalf of the United States. See Sec.  2641.301(a).
    (2) Acting as an elected State or local government official. See 
Sec.  2641.301(b).
    (3) Acting on behalf of specified entities. See Sec.  2641.301(c).
    (4) Making uncompensated statements based on special knowledge. See 
Sec.  2641.301(d).
    (5) Communicating scientific or technological information pursuant 
to procedures or certification. See Sec.  2641.301(e).
    (6) Testifying under oath. See Sec.  2641.301(f).
    (7) Acting on behalf of a candidate or political party. See Sec.  
2641.301(g).
    (8) Acting on behalf of an international organization pursuant to a 
waiver. See Sec.  2641.301(h).
    (9) Acting as an employee of a Government-owned, contractor-operated 
entity pursuant to a waiver. See Sec.  2641.301(i).
    (c) Commencement and length of restriction. 18 U.S.C. 207(d) is a 
two-year restriction. The two-year period is measured from the date when 
the employee ceases to serve in a very senior employee position, not 
from the termination of Government service, unless the two events occur 
simultaneously. See examples 1 and 2 to paragraph (d) of Sec.  2641.204.
    (d) Communication or appearance. SeeSec.  2641.201(d).
    (e) With the intent to influence. SeeSec.  2641.201(e).
    (f) To or before employee of former agency. See Sec.  2641.204(g), 
except that this section covers only former very senior employees and 
applies only with respect to the agency or agencies in which a former 
very senior employee served as a very senior employee, and very senior 
employees do not benefit from the designation of distinct and separate 
agency components as referenced in Sec.  2641.204(g)(2).
    (g) To or before an official appointed to an Executive Schedule 
position. See Sec.  2641.204(g)(3) for ``to or before,'' except that 
this section covers only former very senior employees and also extends 
to a communication or appearance before any official currently appointed 
to a position that is listed in sections 5 U.S.C. 5312-5316.

    Note to paragraph (g): A communication made to an official described 
in 5 U.S.C. 5312-5316 can include a communication to a subordinate of 
such official with the intent that the information be conveyed directly 
to the official and attributed to the former very senior employee.

    (h) On behalf of any other person. See Sec.  2641.201(g).
    (i) Matter on which former very senior employee seeks official 
action. See Sec.  2641.204(i), except that this section

[[Page 738]]

only covers former very senior employees.

    Example 1 to Sec.  2641.205: The former Attorney General may not 
contact the Assistant Attorney General of the Antitrust Division on 
behalf of a professional sports league in support of a proposed 
exemption from certain laws, nor may he contact the Secretary of Labor. 
He may, however, speak directly to the President or Vice President 
concerning the issue.
    Example 2 to Sec.  2641.205: The former Director of the Office of 
Management and Budget (OMB) is now the Chief Executive Officer of a 
major computer firm and wishes to convince the new Administration to 
change its new policy concerning computer chips. The former OMB Director 
may contact an employee of the Department of Commerce who, although paid 
at a level fixed according to level III of the Executive Schedule, does 
not occupy a position actually listed in 5 U.S.C. 5312-5316. She could 
not contact an employee working in the Office of the United States Trade 
Representative, an office within the Executive Office of the President 
(her former agency).
    Example 3 to Sec.  2641.205: A senior employee serves in the 
Department of Agriculture for several years. He is then appointed to 
serve as the Secretary of Health and Human Services (HHS) but resigns 
seven months later. Since the individual served as a very senior 
employee only at HHS, he is barred for two years by 18 U.S.C. 207(d) as 
to any employee of HHS and any official currently appointed to an 
Executive Schedule position listed in 5 U.S.C. 5312-5316, including any 
such official serving in the Department of Agriculture. (In addition, a 
one-year section 207(c) bar commenced when he terminated service as a 
senior employee at the Department of Agriculture.)
    Example 4 to Sec.  2641.205: The former Secretary of the Department 
of Labor may not represent another person in a meeting with the current 
Secretary of Transportation to discuss a proposed regulation on highway 
safety standards.
    Example 5 to Sec.  2641.205: In the previous example, the former 
very senior employee would like to meet instead with the special 
assistant to the Secretary of Transportation. The former employee knows 
that the special assistant has a close working relationship with the 
Secretary. The former employee expects that the special assistant would 
brief the Secretary about any discussions at the proposed meeting and 
refer specifically to the former employee. Because the circumstances 
indicate that the former employee intends that the information provided 
at the meeting would be conveyed by the assistant directly to the 
Secretary and attributed to the former employee, he may not meet with 
the assistant.



Sec.  2641.206  One-year restriction on any former senior or very senior 
employee's representations on behalf of, or aid or advice to, a foreign entity.

    (a) Basic prohibition of 18 U.S.C. 207(f). For one year after 
service in a senior or very senior employee position terminates, no 
former senior employee or former very senior employee shall knowingly 
represent a foreign government or foreign political party before an 
officer or employee of an agency or department of the United States, or 
aid or advise such a foreign entity, with the intent to influence a 
decision of such officer or employee. For purposes of describing persons 
who may not be contacted with the intent to influence, under 18 U.S.C. 
207(f) and this section, the phrase ``officer or employee'' includes the 
President, the Vice President, and Members of Congress, and the term 
``department'' includes the legislative branch of government.
    (b) Exceptions and waivers. The prohibition of 18 U.S.C. 207(f) does 
not apply to a former senior or former very senior employee who is:
    (1) Acting on behalf of the United States. See Sec.  2641.301(a). 
(Note, however, the limitation in Sec.  2641.301(a)(2)(ii).)
    (2) Acting as an elected State or local government official. See 
Sec.  2641.301(b).
    (3) Testifying under oath. See Sec.  2641.301(f).
    (4) Acting on behalf of an international organization pursuant to a 
waiver. See Sec.  2641.301(h).
    (5) Acting as an employee of a Government-owned, contractor-operated 
entity pursuant to a waiver. See Sec.  2641.301(i).
    (6) Subject to a waiver issued for certain positions. See Sec.  
2641.301(j).
    (c) Commencement and length of restriction--(1)Generally. Except as 
provided in paragraph (c)(2) of this section, 18 U.S.C. 207(f) is a one-
year restriction. The one-year period is measured from the date when an 
employee ceases to be a senior or very senior employee, not from the 
termination of Government service, unless the two occur simultaneously. 
See examples 1 and 2 to paragraph (d) of Sec.  2641.204.
    (2) U.S. Trade Representative or Deputy U.S. Trade Representative.18 
U.S.C. 207(f) is a permanent restriction as applied to

[[Page 739]]

a former U.S. Trade Representative or Deputy U.S. Trade Representative.
    (d) Represent, aid, or advise. [Reserved]
    (e) With the intent to influence. [Reserved]
    (f) Decision of employee of an agency. [Reserved]
    (g) Foreign entity. [Reserved]



Sec.  2641.207  One-year restriction on any former private sector assignee 
under the Information Technology Exchange Program representing, aiding, 
counseling or assisting in representing in connection with any contract with 
former agency.

    (a) Basic prohibition of 18 U.S.C. 207(l). For one year after the 
termination of his assignment from a private sector organization to an 
agency under the Information Technology Exchange Program, 5 U.S.C. 
chapter 37, no former assignee shall knowingly represent, or aid, 
counsel or assist in representing any other person in connection with 
any contract with that agency.
    (b) Exceptions and waivers. The prohibition of 18 U.S.C. 207(l) does 
not apply to a former employee who is:
    (1) Acting on behalf of the United States. See Sec.  2641.301(a).
    (2) Acting as an elected State or local government official. See 
Sec.  2641.301(b).
    (3) Testifying under oath. See Sec.  2641.301(f).
    (4) Acting on behalf of an international organization pursuant to a 
waiver. See Sec.  2641.301(h).
    (5) Acting as an employee of a Government-owned, contractor-operated 
entity pursuant to a waiver. See Sec.  2641.301(i).
    (c) Commencement and length of restriction.18 U.S.C. 207(l) is a 
one-year restriction. The one-year period is measured from the date when 
the individual's assignment under the Information Technology Exchange 
Program terminates.
    (d) Represent, aid, counsel, or assist in representing. [Reserved]
    (e) In connection with any contract with the former agency. 
[Reserved]



          Subpart C_Exceptions, Waivers and Separate Components



Sec.  2641.301  Statutory exceptions and waivers.

    (a) Exception for acting on behalf of United States. A former 
employee is not prohibited by any of the prohibitions of 18 U.S.C. 207 
from engaging in any activity on behalf of the United States.
    (1) United States. For purposes of this paragraph, the term ``United 
States'' means:
    (i) The executive branch (including a Government corporation);
    (ii) The legislative branch; or
    (iii) The judicial branch.
    (2) On behalf of the United States. A former employee will be deemed 
to engage in the activity on behalf of the United States if he acts in 
accordance with paragraph (a)(2)(i) or (a)(2)(ii) of this section.
    (i) As employee of the United States. A former employee engages in 
an activity on behalf of the United States when he carries out official 
duties as a current employee of the United States.
    (ii) As other than employee of the United States. (A) Provided that 
he does not represent, aid, or advise a foreign entity in violation of 
18 U.S.C. 207(f), a former employee engages in an activity on behalf of 
the United States when he serves:
    (1) As a representative of the United States pursuant to a specific 
agreement with the United States to provide representational services to 
the United States; or
    (2) As a witness called by the United States (including a 
Congressional committee or subcommittee) to testify at a Congressional 
hearing (even if applicable procedural rules do not require him to 
declare by oath or affirmation that he will testify truthfully).
    (B) A former employee will not be deemed to engage in an activity on 
behalf of the United States merely because he is performing work funded 
by the Government, because he is engaging in the activity in response to 
a contact initiated by the Government, because the Government will 
derive some benefit from the activity, or because he or the person on 
whose behalf he is acting may share the same objective as the 
Government.


[[Page 740]]


    Note to paragraph (a)(2)(ii): See also Sec.  2641.301(f) concerning 
the permissibility of testimony under oath, including testimony as an 
expert witness, when a former employee is called as a witness by the 
United States.
    Example 1 to paragraph (a): An employee of the Department of 
Transportation (DOT) transfers to become an employee of the Pension 
Benefit Guaranty Corporation (PBGC). The PBGC, a wholly owned Government 
corporation, is a corporation in which the United States has a 
proprietary interest. The former DOT employee may press the PBGC's point 
of view in a meeting with DOT employees concerning an airline bankruptcy 
case in which he was personally and substantially involved while at the 
DOT. His communications to the DOT on behalf of the PBGC would be made 
on behalf of the United States.
    Example 2 to paragraph (a): A Federal Transit Administration (FTA) 
employee recommended against the funding of a certain subway project. 
After terminating Government service, she is hired by a Congressman as a 
member of his staff to perform a variety of duties, including 
miscellaneous services for the Congressman's constituents. The former 
employee may contact the FTA on behalf of a constituent group as part of 
her official duties in order to argue for the reversal of the subway 
funding decision in which she participated while still an employee of 
the FTA. Her communications to the FTA on behalf of the constituent 
group would be made on behalf of the United States.
    Example 3 to paragraph (a): A Postal Service attorney participated 
in discussions with the Office of Personnel Management (OPM) concerning 
a dispute over the mailing of health plan brochures. After terminating 
Government service, the attorney joins a law firm as a partner. He is 
assigned by the firm's managing partner to represent the Postal Service 
pursuant to a contract requiring the firm to provide certain legal 
services. The former senior employee may represent the Postal Service in 
meetings with OPM concerning the dispute about the health plan 
brochures. The former senior employee's suggestions to the Postal 
Service concerning strategy and his arguments to OPM concerning the 
dispute would be made on behalf of the United States (even though he is 
also acting on behalf of his law firm when he performs representational 
services for the United States). A communication to the Postal Service 
concerning a disagreement about the law firm's fee, however, would not 
be made on behalf of the United States.
    Example 4 to paragraph (a): A former senior employee of the Food and 
Drug Administration (FDA), now an employee of a drug company, is called 
by a Congressional committee to give unsworn testimony concerning the 
desirability of instituting cost controls in the pharmaceutical 
industry. The former senior employee may address the committee even 
though her testimony will unavoidably also be directed to a current 
employee of the FDA who has also been asked to testify as a member of 
the same panel of experts. The former employee's communications at the 
hearing, provided at the request of the United States, would be made on 
behalf of the United States.
    Example 5 to paragraph (a): A National Security Agency (NSA) analyst 
drafted the specifications for a contract that was awarded to the Secure 
Data Corporation to develop prototype software for the processing of 
foreign intelligence information. After terminating Government service, 
the analyst is hired by the corporation. The former employee may not 
attempt to persuade NSA officials that the software is in accord with 
the specifications. Although the development of the software is expected 
to significantly enhance the processing of foreign intelligence 
information and the former employee's opinions might be useful to 
current NSA employees, his communications would not be made on behalf of 
the United States.
    Example 6 to paragraph (a): A senior employee at the Department of 
the Air Force specialized in issues relating to the effective 
utilization of personnel. After terminating Government service, the 
former senior employee is hired by a contractor operating a Federally 
Funded Research and Development Center (FFRDC). The FFRDC is not a 
``Government corporation'' as defined in Sec.  2641.104. The former 
senior employee may not attempt to convince the Air Force of the manner 
in which Air Force funding should be allocated among projects proposed 
to be undertaken by the FFRDC. Although the work performed by the FFRDC 
will be determined by the Air Force, may be accomplished at Government-
owned facilities, and will benefit the Government, her communications 
would not be made on behalf of the United States.
    Example 7 to paragraph (a): A Department of Justice (DOJ) attorney 
represented the United States in a civil enforcement action against a 
company that had engaged in fraudulent activity. The settlement of the 
case required that the company correct certain deficiencies in its 
operating procedures. After terminating Government service, the attorney 
is hired by the company. When DOJ auditors schedule a meeting with the 
company's legal staff to review company actions since the settlement, 
the former employee may not attempt to persuade the auditors that the 
company is complying with the terms of the settlement. Although the 
former employee's insights might facilitate the audit, his 
communications would not be made on behalf of the United States even 
though the Government's auditors initiated the contact with the former 
employee.

[[Page 741]]

    Note to paragraph (a): See also example 9 to paragraph (j) of Sec.  
2641.202 and example 1 to paragraph (d) of Sec.  2641.204.

    (b) Exception for acting on behalf of State or local government as 
elected official. A former employee is not prohibited by any of the 
prohibitions of 18 U.S.C. 207 from engaging in any post-employment 
activity on behalf of one or more State or local governments, provided 
the activity is undertaken in carrying out official duties as an elected 
official of a State or local government.

    Example 1 to paragraph (b): A former employee of the Department of 
Housing and Urban Development (HUD) participated personally and 
substantially in the evaluation of a grant application from a certain 
city. After terminating Government service, he was elected mayor of that 
city. The former employee may contact an Assistant Secretary at HUD to 
argue that additional funds are due the city under the terms of the 
grant.
    Example 2 to paragraph (b): A former employee of the Federal Highway 
Administration (FHWA) participated personally and substantially in the 
decision to provide funding for a bridge across the White River in 
Arkansas. After terminating Government service, she accepted the 
Governor's offer to head the highway department in Arkansas. A 
communication to or appearance before the FHWA concerning the terms of 
the construction grant would not be made as an elected official of a 
State or local government.

    (c) Exception for acting on behalf of specified entities. A former 
senior or very senior employee is not prohibited by 18 U.S.C. 207(c) or 
(d), or Sec. Sec.  2641.204 or 2641.205, from making a communication or 
appearance on behalf of one or more entities specified in paragraph 
(c)(1) of this section, provided the communication or appearance is made 
in carrying out official duties as an employee of a specified entity.
    (1) Specified entities. For purposes of this paragraph, a specified 
entity is:
    (i) An agency or instrumentality of a State or local government;
    (ii) A hospital or medical research organization, if exempted from 
taxation under 26 U.S.C. 501(c)(3); or
    (iii) An accredited, degree-granting institution of higher 
education, as defined in 20 U.S.C. 1001.
    (2) Employee. For purposes of this paragraph, the term ``employee'' 
of a specified entity means a person who has an employee-employer 
relationship with an entity specified in paragraph (c)(1) of this 
section. It includes a person who is employed to work part-time for a 
specified entity. The term excludes an individual performing services 
for a specified entity as a consultant or independent contractor.

    Example 1 to paragraph (c): A senior employee leaves her position at 
the National Institutes of Health (NIH) and takes a full-time position 
at the Gene Research Foundation, a tax-exempt organization pursuant to 
26 U.S.C. 501(c)(3). As an employee of a 501(c)(3) tax-exempt medical 
research organization, the former senior employee is not barred by 18 
U.S.C. 207(c) from representing the Foundation before the NIH.
    Example 2 to paragraph (c): A former senior employee of the 
Environmental Protection Agency (EPA) joins a law firm in Richmond, 
Virginia. The firm is hired by the Commonwealth of Virginia to represent 
it in discussions with the EPA about an environmental impact statement 
concerning the construction of a highway interchange. The former senior 
employee's arguments concerning the environmental impact statement would 
not be made as an employee of the Commonwealth of Virginia.
    Example 3 to paragraph (c): A former senior employee becomes an 
employee of the ABC Association. The ABC Association is a nonprofit 
organization whose membership consists of a broad representation of 
State health agencies and senior State health officials, and it performs 
services from which certain State governments benefit, including 
collecting information from its members and conveying that information 
and views to the Federal Government. However, the ABC Association has 
not been delegated authority by any State government to perform any 
governmental functions, and it does not operate under the regulatory, 
financial, or management control of any State government. Therefore, the 
ABC Association is not an agency or instrumentality of a State 
government, and the former senior employee may not represent the 
organization before his former agency within one year after terminating 
his senior employee position.

    (d) Exception for uncompensated statements based on special 
knowledge. A former senior or very senior employee is not prohibited by 
18 U.S.C. 207(c) or (d), or Sec. Sec.  2641.204 or 2641.205, from making 
a statement based on his own special knowledge in the particular area 
that is the subject of the statement, provided that he receives no 
compensation for making the statement.

[[Page 742]]

    (1) Special knowledge. A former employee has special knowledge 
concerning a subject area if he is familiar with the subject area as a 
result of education, interaction with experts, or other unique or 
particularized experience.
    (2) Statement. A statement for purposes of this paragraph is a 
communication of facts observed by the former employee.
    (3) Compensation. Compensation includes any form of remuneration or 
income that is given in consideration, in whole or in part, for the 
statement. It does not include the payment of actual and necessary 
expenses incurred in connection with making the statement.

    Example 1 to paragraph (d): A senior employee of the Department of 
the Treasury was personally and substantially involved in discussions 
with other Department officials concerning the advisability of a three-
phase reduction in the capital gains tax. After Government service, the 
former senior employee affiliates with a nonprofit group that advocates 
a position on the three-phase capital gains issue that is similar to his 
own. The former senior employee, who receives no salary from the 
nonprofit organization, may meet with current Department officials on 
the organization's behalf to state what steps had previously been taken 
by the Department to address the issue. The statement would be 
permissible even if the nonprofit organization reimbursed the former 
senior employee for his actual and necessary travel expenses incurred in 
connection with making the statement.
    Example 2 to paragraph (d): A former senior employee becomes a 
government relations consultant, and he enters into a $5,000 per month 
retainer agreement with XYZ Corporation for government relations 
services. He would like to meet with his former agency to discuss a 
regulatory matter involving his client. Even though he would not be paid 
by XYZ specifically for this particular meeting, he nevertheless would 
receive compensation for any statements at the meeting, because of the 
monthly payments under his standing retainer agreement. Therefore he may 
not rely on the exception for uncompensated statements based on special 
knowledge.

    (e) Exception for furnishing scientific or technological 
information. A former employee is not prohibited by 18 U.S.C. 207(a), 
(c), or (d), or Sec. Sec.  2641.201, 2641.202, 2641.204, or 2641.205, 
from making communications, including appearances, solely for the 
purpose of furnishing scientific or technological information, provided 
the communications are made either in accordance with procedures adopted 
by the agency or agencies to which the communications are directed or 
the head of such agency or agencies, in consultation with the Director 
of the Office of Government Ethics, makes a certification published in 
the Federal Register.
    (1) Purpose of information. A communication made solely for the 
purpose of furnishing scientific or technological information may be:
    (i) Made in connection with a matter that involves an appreciable 
element of actual or potential dispute;
    (ii) Made in connection with an effort to seek a discretionary 
Government ruling, benefit, approval, or other action; or
    (iii) Inherently influential in relation to the matter in dispute or 
the Government action sought.
    (2) Scientific or technological information. The former employee 
must convey information of a scientific or technological character, such 
as technical or engineering information relating to the natural 
sciences. The exception does not extend to information associated with a 
nontechnical discipline such as law, economics, or political science.
    (3) Incidental references or remarks. Provided the former employee's 
communication primarily conveys information of a scientific or 
technological character, the entirety of the communication will be 
deemed made solely for the purpose of furnishing such information 
notwithstanding an incidental reference or remark:
    (i) Unrelated to the matter to which the post-employment restriction 
applies;
    (ii) Concerning feasibility, risk, cost, speed of implementation, or 
other considerations when necessary to appreciate the practical 
significance of the basic scientific or technological information 
provided; or
    (iii) Intended to facilitate the furnishing of scientific or 
technological information, such as those references or remarks necessary 
to determine the kind and form of information required or the adequacy 
of information already supplied.


[[Page 743]]


    Example 1 to paragraph (e)(3): After terminating Government service, 
a former senior employee at the National Security Agency (NSA) accepts a 
position as a senior manager at a firm specializing in the development 
of advanced security systems. The former senior employee and another 
firm employee place a conference call to a current NSA employee to 
follow up on an earlier discussion in which the firm had sought funding 
from the NSA to develop a certain proposed security system. After the 
other firm employee explains the scientific principles underlying the 
proposed system, the former employee may not state the system's expected 
cost. Her communication would not primarily convey information of a 
scientific or technological character.
    Example 2 to paragraph (e)(3): If, in the previous example, the 
former senior employee explained the scientific principles underlying 
the proposed system, she could also have stated its expected cost as an 
incidental reference or remark.

    (4) Communications made under procedures acceptable to the agency. 
(i) An agency may adopt such procedures as are acceptable to it, 
specifying conditions under which former Government employees may make 
communications solely for the purpose of furnishing scientific or 
technological information, in light of the agency's particular programs 
and needs. In promulgating such procedures, an agency may consider, for 
example, one or more of the following:
    (A) Requiring that the former employee specifically invoke the 
exception prior to making a communication (or series of communications);
    (B) Requiring that the designated agency ethics official for the 
agency to which the communication is directed (or other agency designee) 
be informed when the exception is used;
    (C) Limiting communications to certain formats which are least 
conducive to the use of personal influence;
    (D) Segregating, to the extent possible, meetings and presentations 
involving technical substance from those involving other aspects of the 
matter; or
    (E) Employing more restrictive practices in relation to 
communications concerning specified categories of matters or specified 
aspects of a matter, such as in relation to the pre-award as 
distinguished from the post-award phase of a procurement.
    (ii) The Director of the Office of Government Ethics may review any 
agency implementation of this exception in connection with OGE's 
executive branch ethics program oversight responsibilities. See 5 CFR 
part 2638.

    Example 1 to paragraph (e)(4): A Marine Corps engineer participates 
personally and substantially in drafting the specifications for a new 
assault rifle. After terminating Government service, he accepts a job 
with the company that was awarded the contract to produce the rifle. 
Provided he acts in accordance with agency procedures, he may accompany 
the President of the company to a meeting with Marine Corps employees 
and report the results of a series of metallurgical tests. These results 
support the company's argument that it has complied with a particular 
specification. He may do so even though the meeting was expected to be 
and is, in fact, a contentious one in which the company's testing 
methods are at issue. He may not, however, present the company's 
argument that an advance payment is due the company under the terms of 
the contract since this would not be a mere incidental reference or 
remark within the meaning of paragraph (e)(3) of this section.

    (5) Certification for expertise in technical discipline. A 
certification issued in accordance with this section shall be effective 
on the date it is executed (unless a later date is specified), provided 
that it is transmitted to the Federal Register for publication.
    (i) Criteria for issuance. A certification issued in accordance with 
this section may not broaden the scope of the exception and may be 
issued only when:
    (A) The former employee has outstanding qualifications in a 
scientific, technological, or other technical discipline (involving 
engineering or other natural sciences as distinguished from a 
nontechnical discipline such as law, economics, or political science);
    (B) The matter requires the use of such qualifications; and
    (C) The national interest would be served by the former employee's 
participation.
    (ii) Submission of requests. The individual wishing to make the 
communication shall forward a written request to the head of the agency 
to which the communications would be directed. Any such request shall 
address the criteria set forth in paragraph (e)(5)(i) of this section.

[[Page 744]]

    (iii) Issuance. The head of the agency to which the communications 
would be directed may, upon finding that the criteria specified in 
paragraph (e)(5)(i) of this section are satisfied, approve the request 
by executing a certification, which shall be published in the Federal 
Register. A copy of the certification shall be forwarded to the affected 
individual. The head of the agency shall, prior to execution of the 
certification, furnish a draft copy of the certification to the Director 
of the Office of Government Ethics and consider the Director's comments, 
if any, in relation to the draft. The certification shall specify:
    (A) The name of the former employee;
    (B) The Government position or positions held by the former employee 
during his most recent period of Government service;
    (C) The identity of the employer or other person on behalf of which 
the former employee will be acting;
    (D) The restriction or restrictions to which the certification shall 
apply;
    (E) Any limitations imposed by the agency head with respect to the 
scope of the certification; and
    (F) The basis for finding that the criteria specified in paragraph 
(e)(5)(i) of this section are satisfied, specifically including a 
description of the matter and the communications that will be 
permissible or, if relevant, a statement that such information is 
protected from disclosure by statute.
    (iv) Copy to Office of Government Ethics. Once published, the agency 
shall provide the Director of the Office of Government Ethics with a 
copy of the certification as published in the Federal Register.
    (v) Revocation. The agency head may revoke a certification and shall 
forward a written notice of the revocation to the former employee and to 
the OGE Director. Revocation of a certification shall be effective on 
the date specified in the notice revoking the certification.
    (f) Exception for giving testimony under oath or making statements 
required to be made under penalty of perjury. Subject to the limitation 
described in paragraph (f)(2) of this section concerning expert witness 
testimony, a former employee is not prohibited by any of the 
prohibitions of 18 U.S.C. 207 from giving testimony under oath or making 
a statement required to be made under penalty of perjury.
    (1) Testimony under oath. Testimony under oath is evidence delivered 
by a witness either orally or in writing, including deposition testimony 
and written affidavits, in connection with a judicial, quasi-judicial, 
administrative, or other legally recognized proceeding in which 
applicable procedural rules require a witness to declare by oath or 
affirmation that he will testify truthfully.
    (2) Limitation on exception for service as an expert witness. The 
exception described in paragraph (f)(1) of this section does not negate 
the bar of 18 U.S.C. 207(a)(1), or Sec.  2641.201, to a former employee 
serving as an expert witness; where the bar of section 207(a)(1) 
applies, a former employee may not serve as an expert witness except:
    (i) If he is called as a witness by the United States; or
    (ii) By court order. For this purpose, a subpoena is not a court 
order, nor is an order merely qualifying an individual to testify as an 
expert witness.
    (3) Statements made under penalty of perjury. A former employee may 
make any statement required to be made under penalty of perjury, except 
that he may not:
    (i) Submit a pleading, application, or other document as an attorney 
or other representative; or
    (ii) Serve as an expert witness where the bar of 18 U.S.C. 207(a)(1) 
applies, except as provided in paragraph (f)(2) of this section.

    Note to paragraph (f): Whether compensation of a witness is 
appropriate is not addressed by 18 U.S.C. 207. However, 18 U.S.C. 201 
may prohibit individuals from receiving compensation for testifying 
under oath in certain forums except as authorized by 18 U.S.C. 201(d). 
Note also that there may be statutory or other bars on the disclosure by 
a current or former employee of information from the agency's files or 
acquired in connection with the individual's employment with the 
Government; a former employee's agency may have promulgated procedures 
to be followed with respect to the production or disclosure of such 
information.
    Example 1 to paragraph (f): A former employee is subpoenaed to 
testify in a case

[[Page 745]]

pending in a United States district court concerning events at the 
agency she observed while she was performing her official duties with 
the Government. She is not prohibited by 18 U.S.C. 207 from testifying 
as a fact witness in the case.
    Example 2 to paragraph (f): An employee was removed from service by 
his agency in connection with a series of incidents where the employee 
was absent without leave or was unable to perform his duties because he 
appeared to be intoxicated. The employee's supervisor, who had assisted 
the agency in handling the issues associated with the removal, 
subsequently left Government. In the ensuing case in Federal court 
between the employee who had been removed and his agency over whether he 
had been discriminated against because of his disabling alcoholism, his 
former supervisor was asked whether on certain occasions the employee 
had been intoxicated on the job and unable to perform his assigned 
duties. Opposing counsel objected to the question on the basis that the 
question required expert testimony and the witness had not been 
qualified as an expert. The judge overruled the objection on the basis 
that the witness would not be providing expert testimony but opinions or 
inferences which are rationally based on his perception and helpful to a 
clear understanding of his testimony or the determination of a fact in 
issue. The former employee may provide the requested testimony without 
violating 18 U.S.C. 207.
    Example 3 to paragraph (f): A former senior employee of the 
Environmental Protection Agency (EPA) is a recognized expert concerning 
compliance with Clean Air Act requirements. Within one year after 
terminating Government service, she is retained by a utility company 
that is the defendant in a lawsuit filed against it by the EPA. While 
the matter had been pending while she was with the agency, she had not 
worked on the matter. After the court rules that she is qualified to 
testify as an expert, the former senior employee may offer her sworn 
opinion that the utility company's practices are in compliance with 
Clean Air Act requirements. She may do so although she would otherwise 
have been barred by 18 U.S.C. 207(c) from making the communication to 
the EPA.
    Example 4 to paragraph (f): In the previous example, an EPA 
scientist served as a member of the EPA investigatory team that compiled 
a report concerning the utility company's practices during the discovery 
stage of the lawsuit. She later terminated Government service to join a 
consulting firm and is hired by the utility company to assist it in its 
defense. She may not, without a court order, serve as an expert witness 
for the company in the matter since she is barred by 18 U.S.C. 207(a)(1) 
from making the communication to the EPA. On application by the utility 
company for a court order permitting her service as an expert witness, 
the court found that there were no extraordinary circumstances that 
would justify overriding the specific statutory bar to such testimony. 
Such extraordinary circumstances might be where no other equivalent 
expert testimony can be obtained and an employee's prior involvement in 
the matter would not cause her testimony to have an undue influence on 
proceedings. Without such extraordinary circumstances, ordering such 
expert witness testimony would undermine the bar on such testimony.

    (g) Exception for representing certain candidates or political 
organizations. Except as provided in paragraph (g)(2) of this section, a 
former senior or very senior employee is not prohibited by 18 U.S.C. 
207(c) or (d), or Sec. Sec.  2641.204 or 2641.205, from making a 
communication or appearance on behalf of a candidate in his capacity as 
a candidate or an entity specified in paragraphs (g)(1)(ii) through 
(g)(1)(vi) of this section.
    (1) Specified persons or entities. For purposes of this paragraph 
(g), the specified persons or entities are:
    (i) A candidate. A candidate means any person who seeks nomination 
for election, or election to, Federal or State office or who has 
authorized others to explore on his own behalf the possibility of 
seeking nomination for election, or election to, Federal or State 
office;
    (ii) An authorized committee. An authorized committee means any 
political committee designated in writing by a candidate as authorized 
to receive contributions or make expenditures to promote the nomination 
or election of the candidate or to explore the possibility of seeking 
the nomination or election of the candidate. The term does not include a 
committee that receives contributions or makes expenditures to promote 
more than one candidate;
    (iii) A national committee. A national committee means the 
organization which, under the bylaws of a political party, is 
responsible for the day-to-day operation of the political party at the 
national level;
    (iv) A national Federal campaign committee. A national Federal 
campaign committee means an organization which, under the bylaws of a 
political

[[Page 746]]

party, is established primarily to provide assistance at the national 
level to candidates nominated by the party for election to the office of 
Senator or Representative in, or Delegate or Resident Commissioner to, 
the Congress;
    (v) A State committee. A State committee means the organization 
which, under the bylaws of a political party, is responsible for the 
day-to-day operation of the political party at the State level; or
    (vi) A political party. A political party means an association, 
committee, or organization that nominates a candidate for election to 
any Federal or State elected office whose name appears on the election 
ballot as the candidate of the association, committee, or organization.
    (2) Limitations. The exception in this paragraph (g) shall not apply 
if the communication or appearance:
    (i) Is made at a time the former senior or very senior employee is 
employed by any person or entity other than:
    (A) A person or entity specified in paragraph (g)(1) of this 
section; or
    (B) A person or entity who exclusively represents, aids, or advises 
persons or entities described in paragraph (g)(1) of this section;
    (ii) Is made other than solely on behalf of one or more persons or 
entities specified in paragraph (g)(1) or (g)(2)(i)(B) of this section; 
or
    (iii) Is made to or before the Federal Election Commission by a 
former senior or very senior employee of the Federal Election 
Commission.

    Example 1 to paragraph (g): The former Deputy Director of the Office 
of Management and Budget becomes the full-time head of the President's 
re-election committee. The former Deputy Director may, within two years 
of terminating his very senior employee position, represent the re-
election committee to the White House travel office in discussions 
regarding the appropriate amounts of reimbursements by the committee of 
political travel costs of the President.
    Example 2 to paragraph (g): The former U.S. Attorney General is 
asked by a candidate running for Governor of Alabama to contact the 
Chairman of the Federal Trade Commission (a position listed in 5 U.S.C. 
5314) to seek the dismissal of a pending enforcement action involving 
the candidate's family business. The former very senior employee's 
communication to the Chairman would not be made on behalf of the 
candidate in his capacity as a candidate and, thus, would be barred by 
18 U.S.C. 207(d).
    Example 3 to paragraph (g): In the previous example, the former 
Attorney General could contact the Commissioner of Internal Revenue (a 
position listed in 5 U.S.C. 5314) to urge the review of a tax ruling 
affecting Alabama's Republican Party since the communication would be 
made on behalf of a State committee.
    Example 4 to paragraph (g): The former Assistant Secretary for 
Legislative and Intergovernmental Affairs at the Department of Commerce 
is hired as a consultant by a company that provides advisory services to 
political candidates and senior executives in private industry. Her only 
client is a candidate for the U.S. Senate. The former senior employee 
may not contact the Deputy Secretary of Commerce within one year of her 
termination from the Department to request that the Deputy Secretary 
give an official speech in which he would express support for 
legislation proposed by the candidate. The communication would be 
prohibited by 18 U.S.C. 207(c) because it would be made when the former 
senior employee was employed by an entity that did not exclusively 
represent, aid, or advise persons or entities specified in paragraph 
(g)(1) of this section.

    (h) Waiver for acting on behalf of international organization. The 
Secretary of State may grant an individual waiver of one or more of the 
restrictions in 18 U.S.C. 207 where the former employee would appear or 
communicate on behalf of, or provide aid or advice to, an international 
organization in which the United States participates. The Secretary of 
State must certify in advance that the proposed activity is in the 
interest of the United States.

    Note to paragraph (h): An employee who is detailed under 5 U.S.C. 
3343 to an international organization remains an employee of his agency. 
In contrast, an employee who transfers under 5 U.S.C. 3581-3584 to an 
international organization is a former employee of his agency.

    (i) Waiver for re-employment by Government-owned, contractor-
operated entity. The President may grant a waiver of one or more of the 
restrictions in 18 U.S.C. 207 to eligible employees upon the 
determination and certification in writing that the waiver is in the 
public interest and the services of the individual are critically needed 
for the benefit of the Federal Government. Upon the issuance of a waiver 
pursuant

[[Page 747]]

to this paragraph, the restriction or restrictions waived will not apply 
to a former employee acting as an employee of the same Government-owned, 
contractor-operated entity with which he was employed immediately before 
the period of Government service during which the waiver was granted. If 
the individual was employed by the Lawrence Livermore National 
Laboratory, the Los Alamos National Laboratory, or the Sandia National 
Laboratory immediately before the person's Federal Government employment 
began, the restriction or restrictions waived shall not apply to a 
former employee acting as an employee of any one of those three national 
laboratories after the former employee's Government service has 
terminated.
    (1) Eligible employees. Any current civilian employee of the 
executive branch, other than an employee serving in the Executive Office 
of the President, who served as an officer or employee at a Government-
owned, contractor-operated entity immediately before he became a 
Government employee. A total of no more than 25 current employees shall 
hold waivers at any one time.
    (2) Issuance. The President may not delegate the authority to issue 
waivers under this paragraph. If the President issues a waiver, a 
certification shall be published in the Federal Register and shall 
identify:
    (i) The employee covered by the waiver by name and position; and
    (ii) The reasons for granting the waiver.
    (3) Copy to Office of Government Ethics. A copy of the certification 
shall be provided to the Director of the Office of Government Ethics 
(OGE).
    (4) Effective date. A waiver issued under this section shall be 
effective on the date the certification is published in the Federal 
Register.
    (5) Reports. Each former employee holding a waiver must submit 
semiannual reports, for a period of two years after terminating 
Government service, to the President and the OGE Director.
    (i) Submission. The reports shall be submitted:
    (A) Not later than six months and 60 days after the date of the 
former employee's termination from the period of Government service 
during which the waiver was granted; and
    (B) Not later than 60 days after the end of any successive six-month 
period.
    (ii) Content. Each report shall describe all activities undertaken 
by the former employee during the six-month period that would have been 
prohibited by 18 U.S.C. 207 but for the waiver.
    (iii) Public availability. All reports filed with the OGE Director 
under this paragraph shall be made available for public inspection and 
copying.

    Note to paragraph (i)(5): 18 U.S.C. 207(k)(5)(D) specifies that an 
individual who is granted a waiver as described in this paragraph is 
ineligible for appointment in the civil service unless all reports 
required by that section have been filed.

    (6) Revocation. A waiver shall be revoked when the recipient of the 
waiver fails to file a report required by paragraph (i)(4) of this 
section, and the recipient of the waiver shall be notified of such 
revocation. The revocation shall take effect upon the person's receipt 
of the notification and shall remain in effect until the report is 
filed.
    (j) Waiver of restrictions of 18 U.S.C. 207(c) and (f) for certain 
positions. The Director of the Office of Government Ethics may waive 
application of the restriction of section 18 U.S.C. 207(c) and Sec.  
2641.204, with respect to certain positions or categories of positions. 
When the restriction of 18 U.S.C. 207(c) has been waived by the Director 
pursuant to this paragraph, the one-year restriction of 18 U.S.C. 207(f) 
and Sec.  2641.206 also will not be triggered upon an employee's 
termination from the position.
    (1) Eligible senior employee positions. A position which could be 
occupied by a senior employee is eligible for a waiver of the 18 U.S.C. 
207(c) restriction except:
    (i) The following positions are ineligible:
    (A) Positions for which the rate of pay is specified in or fixed 
according to 5 U.S.C. 5311-5318 (the Executive Schedule);
    (B) Positions for which occupants are appointed by the President 
pursuant to 3 U.S.C. 105(a)(2)(B); or
    (C) Positions for which occupants are appointed by the Vice 
President pursuant to 3 U.S.C. 106(a)(1)(B).

[[Page 748]]

    (ii) Regardless of the position occupied, private sector assignees 
under the Information Technology Exchange Program, within the meaning of 
paragraph (6) of the definition of senior employee in section 2641.104, 
are not eligible to benefit from a waiver.

    Example 1 to paragraph (j)(1): The head of a department has 
authority to fix the annual salary for a category of positions 
administratively at a rate of compensation not in excess of the rate of 
compensation provided for level IV of the Executive Schedule (5 U.S.C. 
5315). He sets a salary level that does not reference any Executive 
Schedule salary. The level of compensation is not ``specified in'' or 
``fixed according to'' the Executive Schedule. If the authority pursuant 
to which compensation for a position is set instead stated that the 
position is to be paid at the rate of level IV of the Executive 
Schedule, the salary for the position would be fixed according to the 
Executive Schedule.

    (2) Criteria for waiver. A waiver of restrictions for a position or 
category of positions shall be based on findings that:
    (i) The agency has experienced or is experiencing undue hardship in 
obtaining qualified personnel to fill such position or positions as 
shown by relevant factors which may include, but are not limited to:
    (A) Vacancy rates;
    (B) The payment of a special rate of pay to the incumbent of the 
position pursuant to specific statutory authority; or
    (C) The requirement that the incumbent of the position have 
outstanding qualifications in a scientific, technological, technical, or 
other specialized discipline;
    (ii) Waiver of the restriction with respect to the position or 
positions is expected to ameliorate the recruiting difficulties; and
    (iii) The granting of the waiver would not create the potential for 
the use of undue influence or unfair advantage based on past Government 
service, including the potential for use of such influence or advantage 
for the benefit of a foreign entity.
    (3) Procedures. A waiver shall be granted in accordance with the 
following procedures:
    (i) Agency recommendation. An agency's designated agency ethics 
official (DAEO) may, at any time, recommend the waiver of the 18 U.S.C. 
207(c) (and section 207(f)) restriction for a position or category of 
positions by forwarding a written request to the Director addressing the 
criteria set forth in paragraph (j)(2) of this section. A DAEO may, at 
any time, request that a current waiver be revoked.
    (ii) Action by Office of Government Ethics. The Director of the 
Office of Government Ethics shall promptly provide to the designated 
agency ethics official a written response to each request for waiver or 
revocation. The Director shall maintain a listing of positions or 
categories of positions in appendix A to this part for which the 18 
U.S.C. 207(c) restriction has been waived. The Director shall publish 
notice in the Federal Register when revoking a waiver.
    (4) Effective dates. A waiver shall be effective on the date of the 
written response to the designated agency ethics official indicating 
that the request for waiver has been granted. A waiver shall inure to 
the benefit of the individual who holds the position when the waiver 
takes effect, as well as to his successors, but shall not benefit 
individuals who terminated senior service prior to the effective date of 
the waiver. Revocation of a waiver shall be effective 90 days after the 
date that the OGE Director publishes notice of the revocation in the 
Federal Register. Individuals who formerly served in a position for 
which a waiver of restrictions was applicable will not become subject to 
18 U.S.C. 207(c) (or section 207(f)) if the waiver is revoked after 
their termination from the position.
    (k) Miscellaneous statutory exceptions. Several statutory 
authorities specifically modify the scope of 18 U.S.C. 207 as it would 
otherwise apply to a former employee or class of former employees. These 
authorities include:
    (1) 22 U.S.C. 3310(c), permitting employees of the American 
Institute in Taiwan to represent the Institute notwithstanding 18 U.S.C. 
207;
    (2) 22 U.S.C. 3613(d), permitting the individual who was 
Administrator of the Panama Canal Commission on the date of its 
termination to act in carrying out official duties as Administrator of 
the Panama Canal Authority notwithstanding 18 U.S.C. 207;

[[Page 749]]

    (3) 22 U.S.C. 3622(e), permitting an individual who was an employee 
of the Panama Canal Commission on the date of its termination to act in 
carrying out official duties on behalf of the Panama Canal Authority;
    (4) 25 U.S.C. 450i(j), permitting a former employee who is carrying 
out official duties as an employee or elected or appointed official of a 
tribal organization or inter-tribal consortium to act on behalf of the 
organization or consortium in connection with any matter related to a 
tribal governmental activity or Federal Indian program or service, if 
the former employee submits notice of any personal and substantial 
involvement in the matter during Government service;
    (5) 38 U.S.C. 5902(d), permitting a former employee who is a retired 
officer, warrant officer, or enlisted member of the Armed Forces, while 
not on active duty, to act on behalf of certain claimants 
notwithstanding 18 U.S.C. 207 if the claim arises under laws 
administered by the Secretary of Veterans Affairs;
    (6) 50 U.S.C. 405(b), permitting a former part-time member of an 
advisory committee appointed by the Federal Emergency Management Agency, 
the Director of National Intelligence, or the National Security Council 
to engage in conduct notwithstanding 18 U.S.C. 207 except with respect 
to any particular matter directly involving an agency the former member 
advised or in which such agency is directly interested;
    (7) 50 U.S.C. app. 463, permitting former employees appointed to 
certain positions under 50 U.S.C. app. 451 et seq. (Military Selective 
Service Act) to engage in conduct notwithstanding 18 U.S.C. 207; and
    (8) Public Law 97-241, title I, section 120, August 24, 1982 (18 
U.S.C. 203 note), providing that 18 U.S.C. 207 shall not apply under 
certain circumstances to private sector representatives on United States 
delegations to international telecommunications meetings and 
conferences.

    Note to paragraph (k): Exceptions from 18 U.S.C. 207 may be included 
in legislation mandating privatization of Governmental entities. See, 
for example, 42 U.S.C. 2297h-3(c), concerning the privatization of the 
United States Enrichment Corporation.

    (l) Guide to available exceptions and waivers to the prohibitions of 
18 U.S.C. 207. This chart lists the exceptions and waivers set forth in 
18 U.S.C. 207 and for each exception and waiver identifies the 
prohibitions of section 207 excepted or subject to waiver. Detailed 
guidance on the applicability of the exceptions and waivers is contained 
in the cross-referenced paragraphs of this section.

----------------------------------------------------------------------------------------------------------------
                                                                 Section 207 Prohibitions affected
                 Exception/waiver                 --------------------------------------------------------------
                                                    (a)(1)   (a)(2)    (b)      (c)      (d)      (f)      (l)
----------------------------------------------------------------------------------------------------------------
(1) Acting for the United States, see Sec.         
Sec.  2641.302  Separate agency components.

    (a) Designation. For purposes of 18 U.S.C. 207(c) only, and Sec.  
2641.204, the Director of the Office of Government Ethics may designate 
agency ``components'' that are distinct and separate from the ``parent'' 
agency and from each other. Absent such designation, the 
representational bar of section 207(c) extends to the whole of the 
agency in which the former senior employee served. An eligible former 
senior employee who served in the parent agency is not barred by section 
207(c) from

[[Page 750]]

making communications to or appearances before any employee of any 
designated component of the parent, but is barred as to any employee of 
the parent or of any agency or bureau of the parent that has not been 
designated. An eligible former senior employee who served in a 
designated component of the parent agency is barred from communicating 
to or making an appearance before any employee of that designated 
component, but is not barred as to any employee of the parent, of 
another designated component, or of any other agency or bureau of the 
parent that has not been designated.

    Example 1 to paragraph (a): While employed in the Office of the 
Secretary of Defense, a former career Senior Executive Service employee 
was employed in a position for which the rate of basic pay exceeded 86.5 
percent of that payable for level II of the Executive Schedule. He is 
prohibited from contacting the Secretary of Defense and DOD's Inspector 
General. However, because eligible under paragraph (b) of this section 
to benefit from component designation procedures, he is not prohibited 
by 18 U.S.C. 207(c) from contacting the Secretary of the Army. (The 
Department of the Army is a designated component of the parent, DOD. The 
Office of the Secretary of Defense and the Office of the DOD Inspector 
General are both part of the parent, DOD. See the listing of DOD 
components in appendix B to this part.)
    Example 2 to paragraph (a): Because eligible under paragraph (b) of 
this section to benefit from component designation procedures, a former 
Navy Admiral who last served as the Vice Chief of Naval Operations is 
not prohibited by 18 U.S.C. 207(c) from contacting the Secretary of 
Defense, the Secretary of the Army, or DOD's Inspector General. He is 
prohibited from contacting the Secretary of the Navy. (The Department of 
the Navy is a designated component of the parent, DOD. The Office of the 
Secretary of Defense and the Office of the DOD Inspector General are 
both part of the parent. See the listing of DOD components in appendix B 
to this part.)

    (b) Eligible former senior employees. All former senior employees 
are eligible to benefit from this procedure except those who were senior 
employees by virtue of having been:
    (1) Employed in a position for which the rate of pay is specified in 
or fixed according to 5 U.S.C. 5311-5318 (the Executive Schedule) (see 
example 1 to paragraph (j)(1) of Sec.  2641.301);
    (2) Appointed by the President to a position under 3 U.S.C. 
105(a)(2)(B); or
    (3) Appointed by the Vice President to a position under 3 U.S.C. 
106(a)(1)(B).

    Example 1 to paragraph (b): A former senior employee who had served 
as Deputy Commissioner of the Internal Revenue Service is not eligible 
to benefit from the designation of components for the Department of the 
Treasury because the position of Deputy Commissioner is listed in 5 
U.S.C. 5316, at a rate of pay payable for level V of the Executive 
Schedule.

    (c) Criteria for designation. A component designation must be based 
on findings that:
    (1) The component is an agency or bureau, within a parent agency, 
that exercises functions which are distinct and separate from the 
functions of the parent agency and from the functions of other 
components of that parent as shown by relevant factors which may 
include, but are not limited to:
    (i) The component's creation by statute or a statutory reference 
indicating that it exercises functions which are distinct and separate;
    (ii) The component's exercise of distinct and separate subject 
matter or geographical jurisdiction;
    (iii) The degree of supervision exercised by the parent over the 
component;
    (iv) Whether the component exercises responsibilities that cut 
across organizational lines within the parent;
    (v) The size of the component in absolute terms; and
    (vi) The size of the component in relation to other agencies or 
bureaus within the parent.
    (2) There exists no potential for the use of undue influence or 
unfair advantage based on past Government service.
    (d) Subdivision of components. The Director will not ordinarily 
designate agencies that are encompassed by or otherwise supervised by an 
existing designated component.
    (e) Procedures. Distinct and separate components shall be designated 
in accordance with the following procedure:
    (1) Agency recommendation. A designated agency ethics official may, 
at any time, recommend the designation of an additional component or the 
revocation of a current designation by forwarding a written request to 
the Director of the Office of Government Ethics

[[Page 751]]

addressing the criteria set forth in paragraph (c) of this section.
    (2) Agency update. Designated agency ethics officials shall, by July 
1 of each year, forward to the OGE Director a letter stating whether 
components currently designated should remain designated in light of the 
criteria set forth in paragraph (c) of this section.
    (3) Action by the Office of Government Ethics. The Director of the 
Office of Government Ethics shall, by rule, make or revoke a component 
designation after considering the recommendation of the designated 
agency ethics official. The Director shall maintain a listing of all 
designated agency components in appendix B to this part.
    (f) Effective dates. A component designation shall be effective on 
the date the rule creating the designation is published in the Federal 
Register and shall be effective as to individuals who terminated senior 
service either before, on or after that date. Revocation of a component 
designation shall be effective 90 days after the publication in the 
Federal Register of the rule that revokes the designation, but shall not 
be effective as to individuals who terminated senior service prior to 
the expiration of such 90-day period.
    (g) Effect of organizational changes. (1) If a former senior 
employee served in an agency with component designations and the agency 
or a designated component that employed the former senior employee has 
been significantly altered by organizational changes, the appropriate 
designated agency ethics official shall determine whether any successor 
entity is substantially the same as the agency or a designated component 
that employed the former senior employee. Section 2641.204(g)(2)(iv)(A) 
through (g)(2)(iv)(C) should be used for guidance in determining how the 
18 U.S.C. 207(c) bar applies when an agency or a designated component 
has been significantly altered.
    (2) Consultation with Office of Government Ethics. When counseling 
individuals concerning the applicability of 18 U.S.C. 207(c) subsequent 
to significant organizational changes, the appropriate designated agency 
ethics official (DAEO) shall consult with the Office of Government 
Ethics. When it is determined that appendix B to this part no longer 
reflects the current organization of a parent agency, the DAEO shall 
promptly forward recommendations for designations or revocations in 
accordance with paragraph (e) of this section.

    Example 1 to paragraph (g): An eligible former senior employee had 
served as an engineer in the Agency for Transportation Safety, an agency 
within Department X primarily focusing on safety issues relating to all 
forms of transportation. The agency had been designated as a distinct 
and separate component of Department X by the Director of the Office of 
Government Ethics. Subsequent to his termination from the position, the 
functions of the agency are distributed among three other designated 
components with responsibilities relating to air, sea, and land 
transportation, respectively. The agency's few remaining programs are 
absorbed by the parent. As the designated component from which the 
former senior employee terminated is no longer identifiable as 
substantially the same entity, the 18 U.S.C. 207(c) bar will not affect 
him.
    Example 2 to paragraph (g): A scientist served in a senior employee 
position in the Agency for Medical Research, an agency within Department 
X primarily focusing on cancer research. The agency had been designated 
as a distinct and separate component of Department X by the Director of 
the Office of Government Ethics. Subsequent to her termination from the 
position, the mission of the Agency for Medical Research is narrowed and 
it is renamed the Agency for Cancer Research. Approximately 20% of the 
employees of the former agency are transferred to various other parts of 
the Department to continue their work on medical research unrelated to 
cancer. The Agency for Cancer Research is determined to be substantially 
the same entity as the designated component in which she formerly 
served, and the 18 U.S.C. 207(c) bar applies with respect to the 
scientist's contacts with employees of the Agency for Cancer Research. 
She would not be barred from contacting an employee who was among the 
20% of employees who were transferred to other parts of the Department.

    (h) Unauthorized designations. No agency or bureau within the 
Executive Office of the President may be designated as a separate agency 
component.



[[Page 752]]



Sec. Appendix A to Part 2641--Positions Waived From 18 U.S.C. 207(c) and 
                                   (f)

    Pursuant to the provisions of 18 U.S.C. 207(c)(2)(C) and 5 CFR 
2641.301(j), each of the following positions is waived from the 
provisions of 18 U.S.C. 207(c) and 5 CFR 2641.204, as well as the 
provisions of 18 U.S.C. 207(f) and 5 CFR 2641.206. All waivers are 
effective as of the date indicated.

Agency: Department of Justice
Positions:
 United States Trustee (21) (effective June 2, 1994).

[73 FR 36186, June 25, 2008, as amended at 79 FR 2, Jan. 2, 2014]



   Sec. Appendix B to Part 2641--Agency Components for Purposes of 18 
                              U.S.C. 207(c)

    Pursuant to the provisions of 18 U.S.C. 207(h), each of the 
following agencies is determined, for purposes of 18 U.S.C. 207(c), and 
5 CFR 2641.204, to have within it distinct and separate components as 
set forth below. Except as otherwise indicated, all designations are 
effective as of January 1, 1991.

Parent: Department of Commerce
Components:
 Bureau of the Census.
 Bureau of Industry and Security (formerly Bureau of Export 
          Administration) (effective January 28, 1992).
 Economic Development Administration.
 International Trade Administration.
 Minority Business Development Agency (formerly listed as Minority 
          Business Development Administration).
 National Institute of Standards and Technology (effective March 6, 
          2008).
 National Oceanic and Atmospheric Administration.
 National Technical Information Service (effective March 6, 2008).
 National Telecommunications and Information Administration.
 United States Patent and Trademark Office (formerly Patent and 
          Trademark Office).

Parent: Department of Defense
Components:
 Department of the Air Force.
 Department of the Army.
 Department of the Navy.
 Defense Information Systems Agency.
 Defense Intelligence Agency.
 Defense Logistics Agency.
 Defense Threat Reduction Agency (effective February 5, 1999).
 National Geospatial-Intelligence Agency (formerly National Imagery and 
          Mapping Agency) (effective May 16, 1997).
 National Reconnaissance Office (effective January 30, 2003).
 National Security Agency.

Parent: Department of Energy
Component:
 Federal Energy Regulatory Commission.

Parent: Department of Health and Human Services
Components:
 Administration for Children and Families (effective January 28, 1992).
 Administration for Community Living (effective December 4, 2014).
 Agency for Healthcare Research and Quality (formerly Agency for Health 
          Care Policy and Research) (effective May 16, 1997).
 Agency for Toxic Substances and Disease Registry (effective May 16, 
          1997).
 Centers for Disease Control and Prevention (effective May 16, 1997).
 Centers for Medicare and Medicaid Services (formerly Health Care 
          Financing Administration).
 Food and Drug Administration.
 Health Resources and Services Administration (effective May 16, 1997).
 Indian Health Service (effective May 16, 1997).
 National Institutes of Health (effective May 16, 1997).
 Substance Abuse and Mental Health Services Administration (effective 
          May 16, 1997).

Parent: Department of the Interior
Components: \1\
---------------------------------------------------------------------------

    \1\ All designated components under the jurisdiction of a particular 
Assistant Secretary shall be considered a single component for purposes 
of determining the scope of 18 U.S.C. 207(c) as applied to senior 
employees serving on the immediate staff of that Assistant Secretary.
---------------------------------------------------------------------------

 Bureau of Indian Affairs (effective January 28, 1992).
 Bureau of Land Management (effective January 28, 1992).
 Bureau of Reclamation (effective January 28, 1992).
 National Park Service (effective January 28, 1992).
 Office of Surface Mining Reclamation and Enforcement (effective January 
          28, 1992).
 U.S. Fish and Wildlife Service (effective January 28, 1992).
 U.S. Geological Survey (effective January 28, 1992).

Parent: Department of Justice
Components:
 Antitrust Division.
 Bureau of Alcohol, Tobacco, Firearms and Explosives (effective November 
          23, 2004).
 Bureau of Prisons (including Federal Prison Industries, Inc.).
 Civil Division.
 Civil Rights Division.
 Community Relations Service.
 Criminal Division.

[[Page 753]]

 Drug Enforcement Administration.
 Environment and Natural Resources Division.
 Executive Office for United States Attorneys \2\ (effective January 28, 
          1992).
---------------------------------------------------------------------------

    \2\ The Executive Office for United States Attorneys shall not be 
considered separate from any Office of the United States Attorney for a 
judicial district, but only from other designated components of the 
Department of Justice.
---------------------------------------------------------------------------

 Executive Office for United States Trustees \3\ (effective January 28, 
          1992).
---------------------------------------------------------------------------

    \3\ The Executive Office for United States Trustees shall not be 
considered separate from any Office of the United States Trustee for a 
region, but only from other designated components of the Department of 
Justice.
---------------------------------------------------------------------------

 Federal Bureau of Investigation.
 Foreign Claims Settlement Commission.
 Independent Counsel appointed by the Attorney General.
 Office of Justice Programs.
 Office of the Pardon Attorney (effective January 28, 1992).
 Offices of the United States Attorney (each of 94 offices).
 Offices of the United States Trustee (each of 21 offices).
 Office on Violence Against Women \4\ (effective March 8, 2007).
---------------------------------------------------------------------------

    \4\ The Office on Violence Against Women shall not be considered 
separate from the Office of Justice Programs, but only from other 
designated components of the Department of Justice.
---------------------------------------------------------------------------

 Tax Division.
 United States Marshals Service (effective May 16, 1997).
 United States Parole Commission.

Parent: Department of Labor
Components:
Bureau of Labor Statistics.
Employee Benefits Security Administration (formerly Pension and Welfare 
          Benefits Administration) (effective May 16, 1997).
Employment and Training Administration.
Mine Safety and Health Administration.
Occupational Safety and Health Administration.
Office of Disability Employment Policy (effective January 30, 2003).
Office of Federal Contract Compliance Programs (effective December 29, 
          2016).
Office of Labor Management Standards (effective December 29, 2016).
Office of Workers' Compensation Programs (effective December 29, 2016).
Pension Benefit Guaranty Corporation (effective May 25, 2011).
Wage and Hour Division (effective December 29, 2016).

Parent: Department of State
Component:
 Foreign Service Grievance Board.

Parent: Department of Transportation
Components:
Federal Aviation Administration.
Federal Highway Administration.
Federal Motor Carrier Safety Administration (effective January 30, 
          2003).
Federal Railroad Administration.
Federal Transit Administration.
Maritime Administration.
National Highway Traffic Safety Administration.
Pipeline and Hazardous Materials Safety Administration (effctive 
          December 29, 2016).
Saint Lawrence Seaway Development Corporation.

Parent: Department of the Treasury
Components:
 Alcohol and Tobacco Tax and Trade Bureau (effective November 23, 2004).
 Bureau of Engraving and Printing.
 Bureau of the Fiscal Service (effective December 4, 2014).
 Comptroller of the Currency.
 Financial Crimes Enforcement Center (FinCEN) (effective January 30, 
          2003).
 Internal Revenue Service.
 United States Mint (formerly listed as Bureau of the Mint).

[73 FR 36186, June 25, 2008, as amended at 76 FR 30246, May 25, 2011; 79 
FR 71957, Dec. 4, 2014; 80 FR 56894, Sept. 21, 2015; 81 FR 95854, Dec. 
29, 2016]

                       PARTS 2642	2699 [RESERVED]

[[Page 755]]



                 CHAPTER XXI--DEPARTMENT OF THE TREASURY




  --------------------------------------------------------------------
Part                                                                Page
3100

[Reserved]

3101            Supplemental standards of ethical conduct 
                    for employees of the Department of the 
                    Treasury................................         757
3102-3199

 [Reserved]

[[Page 757]]

                          PART 3100 [RESERVED]



PART 3101_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF THE TREASURY--Table of Contents



Sec.
3101.101 General.
3101.102 Designation of separate agency components.
3101.103 Prohibition on purchase of certain assets.
3101.104 Outside employment.
3101.105 Additional rules for Alcohol and Tobacco Tax and Trade Bureau 
          employees.
3101.106 Additional rules for Internal Revenue Service and Treasury 
          Inspector General for Tax Administration employees.
3101.107 Additional rules for Legal Division employees.
3101.108 Additional rules for Office of the Comptroller of the Currency 
          employees.

    Authority: 5 U.S.C. 301, 7301, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 18 U.S.C. 212, 213; 26 U.S.C. 7214(b); 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; 5 CFR 2635.105, 
2635.203(a), 2635.403(a), 2635.803, 2635.807(a)(2)(ii).

    Source: 60 FR 22251, May 5, 1995, unless otherwise noted.



Sec.  3101.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to employees of the Department of the Treasury and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. Employees are required to 
comply with 5 CFR part 2635, this part, and bureau guidance and 
procedures established pursuant to this section. Department employees 
are also subject to any additional rules of conduct that the Department 
or their employing bureaus are authorized to issue. See 31 CFR part 0, 
Department of the Treasury Employee Rules of Conduct.
    (b) Bureau instructions. With the concurrence of the Designated 
Agency Ethics Official (DAEO), bureaus of the Department of the Treasury 
are authorized to issue instructions or manual issuances providing 
explanatory guidance and establishing procedures necessary to implement 
this part and part 2635 of this title. See 5 CFR 2635.105(c).
    (c) Definition of ``agency designee''. As used in this part and in 
part 2635 of this title, the term ``agency designee'' refers to any 
employee who has been delegated authority by an instruction or manual 
issuance issued by a bureau under paragraph (b) of this section to make 
a determination, give an approval, or take other action required or 
permitted by this part or part 2635 of this title with respect to 
another employee. See 5 CFR 2635.102(b).



Sec.  3101.102  Designation of separate agency components.

    Pursuant to 5 CFR 2635.203(a), each of the following components of 
the Department of the Treasury is designated as a separate agency for 
purposes of the regulations contained in subpart B of 5 CFR part 2635 
governing gifts from outside sources and 5 CFR 2635.807 governing 
teaching, speaking or writing:
    (a) Alcohol and Tobacco Tax and Trade Bureau (TTB);
    (b) Bureau of Engraving and Printing;
    (c) Bureau of the Fiscal Service (BFS);
    (d) Financial Crimes Enforcement Network (FinCEN);
    (e) Internal Revenue Service (IRS);
    (f) Office of the Comptroller of the Currency (OCC);
    (g) Office of the Inspector General;
    (h) Office of the Special Inspector General for the Troubled Asset 
Relief Program (SIGTARP);
    (i) Office of the Treasury Inspector General for Tax Administration 
(TIGTA); and
    (j) United States Mint.
    Note to Sec.  3101.102: As a result of the designations contained in 
this section, employees of the remaining parts of the Department of the 
Treasury (e.g., employees in Departmental Offices) will also be treated 
as employees of an agency that is separate from all of the above listed 
bureaus and offices for purposes of determining whether the donor of a 
gift is a prohibited source under 5 CFR 2635.203(d) and for identifying 
an employee's ``agency'' under 5 CFR 2635.807 governing teaching, 
speaking and writing. For purposes of this section, employees in the 
Legal Division shall be considered to be part of the bureaus or offices 
in which they serve.

[79 FR 65877, Nov. 6, 2014]

[[Page 758]]



Sec.  3101.103  Prohibition on purchase of certain assets.

    (a) General prohibition. Except as provided in paragraph (b) of this 
section, no employee of the Department of the Treasury shall purchase, 
directly or indirectly, property:
    (1) Owned by the Government and under the control of the employee's 
bureau (or a bureau over which the employee exercises supervision); or
    (2) Sold under the direction or incident to the functions of the 
employee's bureau.
    (b) Exceptions. The prohibition in paragraph (a) of this section 
does not apply to the purchase of Government securities or items sold 
generally to the public at fixed prices, such as numismatic items 
produced by the United States Mint or foreign gifts deposited with the 
Department pursuant to 5 U.S.C. 7342 that an employee may purchase 
pursuant to 41 CFR part 101-49.
    (c) Waiver. An employee may make a purchase otherwise prohibited by 
this section where a written waiver of the prohibition has been given to 
the employee by an agency designee with the advice and legal clearance 
of the DAEO, or the appropriate Office of Chief or Legal Counsel. Such a 
waiver may be granted only on a determination that the waiver is not 
otherwise prohibited by law and that, in the mind of a reasonable person 
with knowledge of the particular circumstances, the purchase of the 
asset will not raise a question as to whether the employee has used his 
or her official position or inside information to obtain an advantageous 
purchase or create an appearance of loss of impartiality in the 
performance of the employee's duties.

    Note: Employees of the OCC are subject to additional limitations on 
the purchase of assets that are set out in the OCC-specific rules 
contained in Sec.  3101.108.

[60 FR 22251, May 5, 1995, as amended at 80 FR 7797, Feb. 12, 2015]



Sec.  3101.104  Outside employment.

    (a) General requirement for prior approval. All Department of the 
Treasury employees shall obtain prior written approval before engaging 
in any outside employment or business activities, with or without 
compensation, except to the extent that the employing bureau issues an 
instruction or manual issuance pursuant to paragraph (b) of this section 
exempting an activity or class of activities from this requirement. 
Approval shall be granted only on a determination that the employment or 
activity is not expected to involve conduct prohibited by statute, part 
2635 of this title, or any provision of this part.

    Note: Employees of the IRS, Legal Division, and OCC are subject to 
additional limitations on outside employment and activities that are set 
out in bureau-specific rules contained in this part.

    (b) Bureau responsibilities. Each bureau, which for the purposes of 
this section includes the Departmental Offices and the Office of the 
Inspector General, shall issue instructions or manual issuances 
governing the submission of requests for approval of outside employment 
or business activities and designating appropriate officials to act on 
such requests. The instructions or manual issuances may exempt 
categories of employment or activities from the prior approval 
requirement based on a determination that employment or activities 
within those categories would generally be approved and are not likely 
to involve conduct prohibited by statute, part 2635 of this title or any 
provision of this part. Bureaus may include in their instructions or 
issuances examples of outside employment or activities that are 
permissible or impermissible consistent with this part and part 2635 of 
this title. Bureaus shall retain in employees' Official Personnel 
Folders (temporary side) all requests for approval whether granted or 
denied.

[60 FR 22251, May 5, 1995, as amended at 80 FR 7797, Feb. 12, 2015]



Sec.  3101.105  Additional rules for Alcohol and Tobacco Tax 
and Trade Bureau employees.

    The following rules apply to the employees of the Alcohol and 
Tobacco Tax and Trade Bureau and are in addition to Sec. Sec.  3101.101 
through 3101.104.
    (a) Prohibited financial interests. Except as provided in this 
section, no employee of TTB, or spouse or minor child of a TTB employee, 
shall have, directly

[[Page 759]]

or indirectly, any financial interest, including compensated employment, 
in the alcohol, tobacco, firearms or explosives industries. The term 
financial interest is defined in Sec.  2635.403(c) of this title.
    (b) Waiver. An agency designee, with the advice and legal clearance 
of the DAEO or Office of the Chief Counsel, may grant a written waiver 
of the prohibition in paragraph (a) of this section on a determination 
that the financial interest is not prohibited by 26 U.S.C. 7214(b) and 
that, in the mind of a reasonable person with knowledge of the 
particular circumstances, the financial interest will not create an 
appearance of misuse of position or loss of impartiality, or call into 
question the impartiality and objectivity with which TTB's programs are 
administered. A waiver under this paragraph may require appropriate 
conditions, such as execution of a written disqualification.

[79 FR 65877, Nov. 6, 2014]



Sec.  3101.106  Additional rules for Internal Revenue Service 
and Treasury Inspector General for Tax Administration employees.

    The following rules apply to the employees of the Internal Revenue 
Service and the Treasury Inspector General for Tax Administration and 
are in addition to Sec. Sec.  3101.101 through 3101.104.
    (a) Prohibited recommendations. Employees of the IRS or TIGTA shall 
not recommend, refer or suggest, specifically or by implication, any 
attorney, accountant, or firm of attorneys or accountants to any person 
in connection with any official business which involves or may involve 
the IRS.
    (b) Prohibited outside employment. Involvement by an employee of the 
IRS or TIGTA in the following types of outside employment or business 
activities is prohibited and shall constitute a conflict with the 
employee's official duties pursuant to 5 CFR 2635.802:
    (1) Performance of legal services involving Federal, State or local 
tax matters;
    (2) Appearing on behalf of any taxpayer as a representative before 
any Federal, State, or local government agency, in an action involving a 
tax matter except on written authorization of the Commissioner of 
Internal Revenue or the Treasury Inspector General for Tax 
Administration;
    (3) Engaging in accounting, or the use, analysis, and interpretation 
of financial records when such activity involves tax matters;
    (4) Engaging in bookkeeping, the recording of transactions, or the 
record-making phase of accounting, when such activity is directly 
related to a tax determination; and
    (5) Engaging in the preparation of tax returns for compensation, 
gift, or favor.
    (c) Seasonal employees. Seasonal employees of the IRS while in non-
duty status may engage in outside employment or activities other than 
those prohibited by paragraph (b) of this section without obtaining 
prior written permission.

[79 FR 65877, Nov. 6, 2014]



Sec.  3101.107  Additional rules for Legal Division employees.

    The following rules apply to the employees of the Legal Division and 
are in addition to Sec. Sec.  3101.101 through 3101.104:
    (a) Application of rules of other bureaus. In addition to the rule 
contained in paragraph (b) of this section, employees in the Legal 
Division shall be covered by the rules contained in this part that are 
applicable to employees of the bureaus or offices in which the Legal 
Division employees serve, subject to any instructions which the General 
Counsel or appropriate Chief or Legal Counsel may issue in accordance 
with Sec.  3101.101(b).
    (b) Prohibited outside employment. Pursuant to 5 CFR 2635.802, it is 
prohibited and shall constitute a conflict with the employee's official 
duties for an attorney employed in the Legal Division to engage in the 
outside practice of law that might require the attorney to:
    (1) Take a position that is or appears to be in conflict with the 
interests of the Department of the Treasury which is the client to whom 
the attorney owes a professional responsibility; or
    (2) Interpret any statute, regulation or rule administered or issued 
by the Department.

[[Page 760]]



Sec.  3101.108  Additional rules for Office of the Comptroller 
of the Currency employees.

    The following rules apply to the employees of the Office of the 
Comptroller of the Currency and are in addition to Sec. Sec.  3101.101-
3101.104:
    (a) Prohibited financial interests--
    (1) Prohibition. Except as provided in paragraphs (a)(3) and (g) of 
this section, no OCC employee, or spouse or minor child of an OCC 
employee, shall own, directly or indirectly, securities of any 
commercial bank (including both national and state-chartered banks), 
Federal savings association, state savings association, or of any 
affiliate of these institutions (including bank holding companies, 
savings and loan holding companies, and non-bank subsidiaries of either 
type of holding company), or of any foreign bank.
    (2) Definition of ``securities''. For purposes of paragraphs (a)(1) 
and (a)(3) of this section, the term ``securities'' includes all 
interests in debt or equity instruments. The term includes, without 
limitation, secured and unsecured bonds, debentures, notes, securitized 
assets and commercial paper, as well as all types of preferred and 
common stock. The term encompasses both current and contingent ownership 
interests, including any beneficial or legal interest derived from a 
trust. It extends to any right to acquire or dispose of any long or 
short position in such securities and includes, without limitation, 
interests convertible into such securities, as well as options, rights, 
warrants, puts, calls, and straddles with respect thereto.
    (3) Exceptions. Nothing in this section prohibits an OCC employee, 
or spouse or minor child of an OCC employee, from:
    (i) Owning an interest in a publicly traded or publicly available 
mutual fund, other collective investment fund or pooled investment 
product, or a widely-held pension or other similar fund if the fund does 
not have a stated policy of concentration in the financial services 
industry and neither the employee nor the employee's spouse exercises or 
has the ability to exercise control over the financial interests held by 
the fund or the selection of fund holdings;
    (ii) Owning securities in a publicly traded company owning banks or 
savings associations if--
    (A) By virtue of the limited activities of the banks or savings 
associations, the ownership of banks or savings associations does not 
cause their parent holding company to become a bank holding company 
under the Bank Holding Company Act of 1956, 12 U.S.C. 1841 et seq, (for 
example, a bank engaged only in credit card activities);
    (B) For savings and loan holding companies, the ownership or 
operation of savings associations is not a significant activity 
(generally less than 15% of the assets) of the holding company;
    (C) The company is identified as meeting the requirements of (A) or 
(B) above on a list maintained by the OCC Ethics Counsel; and
    (D) The employee owning or seeking to purchase the securities does 
not participate in the regulation or supervision of any bank or savings 
association owned or operated by the company;
    (iii) Owning the securities of a foreign bank that does not own a 
commercial bank or savings association in the United States provided 
that the employee owning the securities does not participate in the 
regulation or supervision of any Federal branch or agency operated by 
the foreign bank;
    (iv) Using a commercial bank, a savings association or an affiliate 
of a commercial bank or savings association as custodian or trustee of 
accounts containing tax-deferred retirement funds; or
    (v) Owning any security pursuant to a waiver granted under paragraph 
(g) of this section.
    (b) Prohibited borrowing--
    (1) Prohibition on employee borrowing. Except as provided in this 
section, no covered OCC employee shall seek or obtain credit from any 
national bank or Federal savings association or from any officer, 
director, employee or subsidiary of a national bank or Federal savings 
association.
    (2) Prohibition on borrowing by a spouse or minor child. The 
prohibition in paragraph (b)(1) of this section shall apply to the 
spouse or minor child of a covered OCC employee unless the loan or 
extension of credit:

[[Page 761]]

    (i) Is supported only by the income or independent means of the 
spouse or minor child;
    (ii) Is obtained on terms and conditions no more favorable than 
those offered to the general public; and
    (iii) The covered OCC employee does not participate in the 
negotiation for the loan or serve as co-maker, endorser, or guarantor of 
the loan.
    (3) Covered OCC employee. For purposes of the prohibitions on 
borrowing contained in paragraphs (b)(1) and (b)(2) of this section, 
``covered OCC employee'' means:
    (i) An OCC examiner; and
    (ii) Any other OCC employee specified in an OCC instruction or 
manual issuance whose duties and responsibilities, as determined by the 
Comptroller of the Currency or his or her designee, require application 
of the prohibition on borrowing contained in this section to ensure 
public confidence that the OCC's programs are conducted impartially and 
objectively.
    (4) Exceptions--(i) Credit cards. A covered OCC employee or the 
spouse or minor child of such a covered OCC employee may seek, obtain or 
hold a credit card from a national bank, a Federal savings association 
or a subsidiary of a national bank or Federal savings association if--
    (A) The applicant satisfies all financial requirements set by the 
lender that are generally applicable to all applicants for the same type 
of credit card account;
    (B) The terms and conditions applicable with respect to the credit 
card account and any credit extended under the account are no more 
favorable generally to the applicant than the terms and conditions that 
are generally applicable to credit card accounts offered by the same 
lender to other cardholders in comparable circumstances;
    (C) An employee who holds a credit card (or whose spouse or minor 
child holds a credit card) must submit a written recusal notice to his 
or her supervisor and ethics official if the cardholder becomes involved 
in an adversarial dispute with the issuer of the credit card account. A 
cardholder is involved in an adversarial dispute if he or she is 
delinquent in payments on the credit card account; the issuer and the 
cardholder are negotiating to restructure the credit card debt; the 
cardholder disputes the terms and conditions of the account; or the 
cardholder becomes involved in any disagreement with the issuer that may 
cast doubt on the employee's ability to remain impartial with respect to 
the issuer.
    (ii) Loans secured by principal residence. A covered OCC employee or 
the spouse or minor child of a covered OCC employee may seek and obtain 
a loan from a national bank, a Federal savings association or a 
subsidiary of a national bank or Federal savings association subject to 
the following conditions:
    (A) The loan is secured by residential real property that is the 
applicant's principal residence;
    (B) The applicant must satisfy all financial requirements set by the 
lender for the residential real property loan that are generally 
applicable to borrowers for the same type of residential real property 
loan; and
    (C) The terms and conditions applicable with respect to the 
residential real property loan and any credit extended under the loan 
must be no more favorable generally to the applicant than the terms and 
conditions that are generally applicable to residential real property 
loans offered by the same lender to other borrowers in comparable 
circumstances.
    (iii) A covered employee who seeks or obtains a real property loan 
from a national bank, Federal savings association or a subsidiary of a 
national bank or Federal savings association or whose spouse or minor 
child obtains a real property loan under the requirements of paragraph 
(b)(4)(ii) above must observe from the time of the initial application 
any recusal established under OCC ethics policy.
    (5) Pre-existing credit. (i) This section does not prohibit a 
covered OCC employee, or spouse or minor child of a covered OCC employee 
from retaining a loan or extension of credit from a national bank or 
Federal savings association on its original terms, and subject to any 
recusal established under OCC ethics policy, if the loan or extension of 
credit:
    (A) Was incurred prior to employment by the OCC;

[[Page 762]]

    (B) Was obtained from a lender that was not supervised by the OCC at 
the time it was obtained; or
    (C) Is held by a national bank or Federal savings association or 
subsidiary thereof as the result of the sale or transfer of a loan to 
the national bank or Federal savings association or the conversion or 
merger of the lender into a national bank or Federal savings 
association.
    (ii) Any renewal or renegotiation of a pre-existing loan or 
extension of credit will be treated as a new loan subject to the 
prohibitions in paragraph (b)(1) of this section.
    (c) Restrictions arising from third party relationships. If any of 
the entities listed in paragraphs (c)(1) through (c)(7) of this section 
have securities that an OCC employee would be prohibited from having by 
paragraph (a) of this section, or loans or extensions of credit that a 
covered OCC employee would be prohibited from obtaining under paragraph 
(b) of this section, the employee shall promptly report such interests 
to the Chief Counsel or designee. The Chief Counsel or designee may 
require the employee to terminate the third party relationship, 
undertake an appropriate disqualification, or take other appropriate 
action necessary, under the particular circumstances, to avoid a 
statutory violation or a violation of part 2635 of this title, or this 
part, including an appearance of misuse of position or loss of 
impartiality. This paragraph applies to any:
    (1) Partnership in which the employee, or spouse or minor child of 
the employee, is a general partner;
    (2) Partnership in which the employee, or spouse or minor child of 
the employee, individually or jointly holds more than a 10 percent 
limited partnership interest;
    (3) Closely held corporation in which the employee, or spouse or 
minor child of the employee, individually or jointly holds more than a 
10 percent equity interest;
    (4) Trust in which the employee, or spouse or minor child of the 
employee, has a legal or beneficial interest;
    (5) Investment club or similar informal investment arrangement 
between the employee, or spouse or minor child of the employee, and 
others;
    (6) Qualified profit sharing, retirement or similar plan in which 
the employee, or spouse or minor child of the employee, has an interest; 
or
    (7) Other entity if the employee, or spouse or minor child of the 
employee, individually or jointly holds more than a 25 percent equity 
interest.
    (d) Prohibited recommendations. Employees of the OCC shall not make 
recommendations or suggestions, directly or indirectly, concerning the 
acquisition or sale or other divestiture of securities of any commercial 
bank (including both national and state-chartered banks), Federal 
savings association, state savings association, affiliate of these 
institutions (including bank holding companies, savings and loan holding 
companies, and any non-bank subsidiaries of either type of holding 
company), or foreign bank that owns a commercial bank or savings 
association in the United States.
    (e) Prohibited purchase of assets. No employee of the OCC, or spouse 
or minor child of an OCC employee, shall purchase, directly or 
indirectly, an asset (i.e., real property, automobiles, furniture, or 
similar items) from a national bank or Federal savings association or an 
affiliate of a national bank or a Federal savings association, including 
a bank or savings and loan holding company, unless it is sold at a 
public auction or by other means which ensure that the selling price is 
the asset's fair market value.
    (f) Outside employment--(1) Prohibition on outside employment. No 
covered OCC employee shall perform services for compensation for any 
bank, savings association or a bank or savings association affiliate, or 
for any officer, director or employee of, or for any person connected in 
any capacity with a bank, savings association or bank or savings 
association affiliate.
    (2) Covered OCC employee. For purposes of the prohibitions on 
outside employment contained in paragraph (f)(1) of this section, 
``covered OCC employee'' means:
    (i) An OCC examiner; and
    (ii) Any other OCC employee specified in an OCC instruction or 
manual issuance whose duties and responsibilities, as determined by the 
Comptroller of the Currency or his or her designee,

[[Page 763]]

require application of the prohibition on outside employment contained 
in this section to ensure public confidence that the OCC's programs are 
conducted impartially and objectively.
    (g) Waivers. An agency designee may grant a written waiver from any 
provision of this section based on a determination made with the advice 
and legal clearance of the DAEO or Office of the Chief Counsel that the 
waiver is not inconsistent with part 2635 of this title or otherwise 
prohibited by law and that, under the particular circumstances, 
application of the prohibition is not necessary to avoid the appearance 
of misuse of position or loss of impartiality or otherwise to ensure 
confidence in the impartiality and objectivity with which agency 
programs are administered. A waiver under this paragraph may impose 
appropriate conditions, such as requiring execution of a written 
disqualification.

[60 FR 22251, May 5, 1995, as amended at 67 FR 46841, July 17, 2002; 79 
FR 65878, Nov. 6, 2014]

                       PARTS 3102	3199 [RESERVED]

[[Page 765]]



           CHAPTER XXII--FEDERAL DEPOSIT INSURANCE CORPORATION




  --------------------------------------------------------------------
Part                                                                Page
3200

[Reserved]

3201            Supplemental standards of ethical conduct 
                    for employees of the Federal Deposit 
                    Insurance Corporation...................         767
3202-3299

 [Reserved]

[[Page 767]]

                          PART 3200 [RESERVED]



PART 3201_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL DEPOSIT INSURANCE CORPORATION--Table of Contents



Sec.
3201.101 General.
3201.102 Extensions of credit and loans from FDIC-insured institutions.
3201.103 Prohibition on acquisition, ownership, or control of securities 
          of FDIC-insured depository institutions and certain holding 
          companies.
3201.104 Restrictions concerning the purchase of property held by the 
          Corporation or the RTC as conservator, receiver, or liquidator 
          of the assets of an insured depository institution, or by a 
          bridge bank organized by the Corporation.
3201.105 Prohibition on dealings with former employers, associates, and 
          clients.
3201.106 Employment of family members outside the Corporation.
3201.107 Outside employment and other activities.
3201.108 Related statutory and regulatory authorities.
3201.109 Provisions of 5 CFR part 2635 not applicable to Corporation 
          employees.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 12 U.S.C. 1819(a), 1822; 18 U.S.C. 212, 213; 26 U.S.C. 1043; 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; 5 CFR 2635.105, 2635.403, 
2635.502, 2635.803.

    Source: 60 FR 20174, Apr. 25, 1995, unless otherwise noted.



Sec.  3201.101  General.

    (a) Purpose. The regulations in this part apply to employees of the 
Federal Deposit Insurance Corporation (Corporation) and supplement the 
Standards of Ethical Conduct for Employees of the Executive Branch 
contained in 5 CFR part 2635. Where specified, these regulations also 
apply to the Comptroller of the Currency and the Director of the Office 
of Thrift Supervision in connection with their activities as members of 
the Corporation's Board of Directors.
    (b) Corporation ethics officials. The Executive Secretary of the 
Corporation shall act as the Corporation's Ethics Counselor and as its 
Designated Agency Ethics Official under 5 CFR part 2638. The Ethics 
Program Manager shall act as the Corporation's Alternate Ethics 
Counselor and as the Alternate Agency Ethics Official.
    (1) The Ethics Counselor or Alternate Ethics Counselor may delegate 
authority to one or more employees to serve as Deputy Ethics Counselors.
    (2) The delegation to a Deputy Ethics Counselor shall be in writing 
and cannot be redelegated.
    (c) Agency designees. The Ethics Counselor and Alternate Ethics 
Counselor shall serve as the agency designees for purposes of making the 
determinations, granting the approvals, and taking other actions 
required by an agency designee under part 2635 and this part. The Ethics 
Counselor or Alternate Ethics Counselor may delegate authority to Deputy 
Ethics Counselors or to other employees to serve as agency designees for 
specified purposes. The delegation to any agency designee shall be in 
writing and cannot be redelegated.
    (d) Definitions. For purposes of this part, the following 
definitions apply:
    (1) Affiliate, as defined in 12 U.S.C. 1841(k), means any company 
that controls, is controlled by, or is under common control with another 
company.
    (2) Appropriate director means the head of a Washington office or 
division or the highest ranking official assigned to a regional office 
in each division or the Ethics Counselor.
    (3) Covered employee means:
    (i) Members of the FDIC Board of Directors and any employee required 
to file a public or confidential financial disclosure under 5 CFR part 
2634 who holds a position immediately subordinate to such Board member;
    (ii) The director of any Washington division or office and the 
director of any regional office, and any employee required to file a 
public or confidential financial disclosure report under 5 CFR part 2634 
who holds a position immediately subordinate to such director;
    (iii) An FDIC examiner;
    (iv) Any other FDIC employee whose duties and responsibilities 
include the examination of or the participation in the examination of 
any financial institution;

[[Page 768]]

    (v) Any other FDIC employee whose duties and responsibilities, as 
determined by the Chairman or Ethics Counselor after notice to the 
employee, require application of the prohibition on borrowing contained 
in Sec.  3201.102 to ensure public confidence that the FDIC's programs 
are conducted impartially and objectively.
    (4) Employee means an officer or employee, other than a special 
Government employee, of the Corporation, including a member of the Board 
of Directors appointed under the authority of 12 U.S.C. 1812(a)(1)(C). 
For purposes of 5 CFR part 2635 and Sec. Sec.  3201.103 and 3201.104, 
employee includes any individual who, pursuant to a contract or any 
other arrangement, performs functions or activities of the Corporation, 
under the direct supervision of an officer or employee of the 
Corporation.
    (5) Ethics Counselor means an officer or employee who is designated 
by the head of the agency to coordinate and manage the agency's ethics 
program, and includes the Corporation's Alternate Ethics Counselor.
    (6) Security includes an interest in debt or equity instruments. The 
term includes, without limitation, a secured or unsecured bond, 
debenture, note, securitized assets, commercial paper, and all types of 
preferred and common stock. The term includes an interest or right in a 
security, whether current or contingent, a beneficial or legal interest 
derived from a trust, the right to acquire or dispose of any long or 
short position, an interest convertible into a security, and an option, 
right, warrant, put, or call with respect to a security. The term 
security does not include a deposit account.
    (7) State nonmember bank means any State bank as defined in 12 
U.S.C. 1813(e) that is not a member of the Federal Reserve System.
    (8) Subsidiary, as defined in 12 U.S.C. 1813(w), means any company 
that is owned or controlled directly or indirectly by another company.

[60 FR 20174, Apr. 25, 1995, as amended at 67 FR 71070, Nov. 29, 2002; 
72 FR 19378, Apr. 18, 2007]



Sec.  3201.102  Extensions of credit and loans from FDIC-insured institutions.

    (a) Credit subject to this section. The prohibition, 
disqualification, and retention provisions of this section apply to a 
current or contingent financial obligation of the employee. For purposes 
of this section, a current or contingent financial obligation of an 
employee's spouse or minor child is considered to be an obligation of 
the employee.
    (b) Disqualification applicable to FDIC employees generally. Except 
as provided in this section:
    (1) No FDIC employee may participate in an examination, audit, 
visitation, review, or investigation, or any other particular matter 
involving an FDIC-insured institution, subsidiary or other person with 
whom the employee has an outstanding extension of credit.
    (2) For employees, other than covered employees as defined in Sec.  
3201.101(d)(3), disqualification is not required if the credit was 
extended through the use of a credit card on the same terms and 
conditions as are offered to the general public.
    (3) The Comptroller of the Currency and the Director of the Office 
of Thrift Supervision shall be disqualified from any matter pending 
before the FDIC Board of Directors to the same extent as an FDIC 
employee subject to paragraph (c) of this section.
    (c) Prohibited borrowing by covered employees--(1) Prohibition on 
covered employee borrowing. Except as provided below, no covered 
employee shall, directly or indirectly, accept or become obligated on a 
loan or extension of credit, whether current or contingent, from any 
FDIC-insured State nonmember bank or its subsidiary or from an officer, 
director, or employee, of any FDIC-insured State nonmember bank or its 
subsidiary.
    (2) Exceptions: (i) Credit cards. A covered employee (or spouse or 
minor child of a covered employee) may obtain and hold a credit card 
account established under an open end consumer credit plan and issued by 
an FDIC-insured State nonmember bank or its subsidiary subject to the 
following conditions:
    (A) The cardholder must satisfy all financial requirements for the 
credit

[[Page 769]]

card account that are generally applicable to all applicants for the 
same type of credit card account; and
    (B) The terms and conditions applicable with respect to the account 
and any credit extended to the cardholder under the account are no more 
favorable generally to the cardholder than the terms and conditions that 
are generally applicable to credit card accounts offered by the same 
bank (or the same subsidiary) to other cardholders in comparable 
circumstances under open end consumer credit plans.
    (ii) Loans secured primarily by principal residence. A covered 
employee (or a spouse or minor child of a covered employee) may obtain 
and hold a loan from an FDIC-insured State nonmember bank or its 
subsidiary subject to the following conditions:
    (A) The loan is secured by residential real property that is the 
principal residence of the borrower. The borrower may retain the loan if 
the residential real property ceases to be the principal residence. 
However, any subsequent renewal or renegotiation of the original terms 
of such a loan must meet the requirements of this paragraph;
    (B) The borrower may not apply for the loan while the covered 
employee participates in any examination, the review of any application, 
or any other supervisory or regulatory or other particular matter 
directly affecting the State nonmember bank or its subsidiaries;
    (C) The borrower must satisfy all financial requirements for the 
loan that are generally applicable to all applicants for the same type 
of residential real property loan; and
    (D) The terms and conditions applicable with respect to the loan and 
any credit extended to the borrower under the loan are no more favorable 
generally to the borrower than the terms and conditions that are 
generally applicable to residential real property loans offered by the 
same State nonmember bank or the same subsidiary to other borrowers in 
comparable circumstances for residential real property loans.
    (3) Disqualification of covered employees. A covered employee shall 
not participate in an examination, audit, visitation, review, or 
investigation, or other particular matter involving an FDIC-insured 
depository institution or other person with whom the covered employee 
has an outstanding extension of credit, or with whom the covered 
employee is negotiating an extension of credit.
    (i) Payment dispute, delinquency, or other significant matter 
concerning credit card debt. Disqualification is not required if the 
credit is extended through the use of a credit card. However, 
disqualification will be required when a covered employee is delinquent 
on payments, has a billing dispute, is negotiating with the institution, 
or has any other significant issue regarding the credit card debt. The 
covered employee must notify his or her supervisor and deputy ethics 
counselor of a dispute in writing.
    (ii) Primary residence mortgage loan. Disqualification will be 
required if the covered employee is negotiating for, has an application 
pending for, or enters into a primary residence mortgage loan. This 
disqualification will cease when the loan is sold, even if the loan 
originator retains the loan servicing.
    (4) Other limitations on covered employees. (i) A covered employee 
shall not accept or become obligated on an otherwise permissible loan if 
the disqualification arising from the credit relationship would 
materially impair the covered employee's ability to participate in 
matters that are central to the performance of the covered employee's 
official duties, or if the covered employee has been advised of an 
assignment to handle a matter involving that institution.
    (ii) Covered employees to whom the prohibitions in this section 
apply may not apply for a credit card or primary residence mortgage loan 
from a State nonmember bank or subsidiary that the covered employee is 
assigned to examine or participate in a matter involving that 
institution, or if such an assignment is imminent.
    (5) Pre-existing credit. (i) This section does not prohibit a 
covered employee, or any FDIC employee who becomes a covered employee as 
a result of any reassignment of duties or position, from retaining a 
loan or extension of credit from a State nonmember bank or its 
subsidiary on its original terms if the

[[Page 770]]

loan or extension of credit was incurred prior to employment by the FDIC 
or as a result of the sale or transfer of a loan or credit to a State 
nonmember bank or its subsidiary or the conversion or merger of the 
lender into a State nonmember bank or its subsidiary. Any renewal or 
renegotiation of a pre-existing loan or extension of credit will be 
treated as a new loan or extension of credit subject to the prohibitions 
at paragraphs (c)(3) and (c)(4) of this section.
    (ii) A covered employee may request that an exception be made to the 
prohibitions to permit renegotiation of a pre-existing loan or extension 
of credit. If a covered employee would experience financial or other 
hardship unless allowed to renegotiate a pre-existing loan or extension 
of credit, the covered employee may submit a written request to his or 
her supervisor and to the Ethics Counselor, describing the reasons for 
renegotiation, the original and the proposed terms and conditions, 
including whether the financial institution makes such terms generally 
available to the public, and any attempts by the covered employee to 
move the loan to a non-prohibited source. After consideration of the 
request, the covered employee's supervisor and the Ethics Counselor 
jointly may grant the waiver upon a finding that renegotiation is not 
prohibited by law, and that the waiver does not result in a loss of 
impartiality or objectivity or in misuse of the employee's position. To 
be effective, the waiver must be in writing.
    (d) Two-year prohibition on acceptance of credit from an FDIC-
insured depository institution. An FDIC employee shall not, directly or 
indirectly, accept or become obligated on any extension of credit from 
an FDIC-insured depository institution or its subsidiary for a period of 
two years from the date of the employee's last personal and substantial 
participation in an audit, resolution, liquidation, assistance 
transactions, supervisory proceeding, or internal agency deliberation 
affecting that particular institution, its predecessor or successor, or 
any subsidiary of such institution. This prohibition does not apply to 
credit obtained through the use of a credit card or a residential real 
property loan secured by the principal residence of the employee, 
subject to the same conditions, limitations, disqualification, and 
waiver procedures applicable to covered employees under paragraphs (c) 
and (e) of this section.
    (e) Waiver. The Ethics Counselor may grant a written waiver from any 
provision of this section based on a determination made with the advice 
and legal clearance of the Legal Division that the waiver is not 
inconsistent with part 2635 of this title or otherwise prohibited by 
law, and that, under the particular circumstances, application of the 
prohibition is not necessary to avoid the appearance of misuse of 
position or loss of impartiality, or otherwise to ensure confidence in 
the impartiality and objectivity with which the FDIC's programs are 
administered. A waiver under this paragraph may impose appropriate 
conditions, such as requiring execution of a written disqualification.

[72 FR 19378, Apr. 18, 2007]



Sec.  3201.103  Prohibition on acquisition, ownership, or control 
of securities of FDIC-insured depository institutions 
and certain holding companies.

    (a) Prohibition on acquisition, ownership, or control. Except as 
provided in paragraph (b) of this section, no employee, spouse of an 
employee, or minor child of an employee may acquire, own, or control, 
directly or indirectly, a security of any of the following:
    (1) A bank or savings association that is insured by the Federal 
Deposit Insurance Corporation (FDIC);
    (2) A bank holding company that is subject to supervision by the 
Federal Reserve Board (FRB);
    (3) A savings and loan holding company that is subject to 
supervision by the Office of Thrift Supervision (OTS);
    (4) A financial holding company that is subject to FRB supervision; 
or
    (5) A company that:
    (i) Owns or controls an FDIC-insured bank or savings association;

[[Page 771]]

    (ii) Is neither an FRB-supervised bank holding company, an OTS-
supervised savings and loan holding company, nor an FRB-supervised 
financial holding company; and
    (iii) Is either primarily engaged in banking or not publicly traded 
on a U.S. securities exchange.
    (b) Exceptions. Notwithstanding the prohibitions of paragraph (a) of 
this section, but subject to the limitations of paragraph (c) of this 
section, an employee, or the spouse or minor child of an employee, may 
do any or all of the following:
    (1) Acquire, own, or control the securities of a unitary thrift 
holding company (i.e., a savings and loan holding company that is 
subject to OTS supervision but whose principal business is neither 
banking nor activities closely related to banking);
    (2) Own or control a security of an entity described in paragraph 
(a) of this section if the security was permitted to be retained by the 
employee under 12 CFR part 336 prior to May 25, 1995, was obtained prior 
to commencement of employment with the Corporation, or was acquired by a 
spouse prior to marriage to the employee;
    (3) Own, or control a security of an entity described in paragraph 
(a) of this section if:
    (i) The security was acquired by inheritance, gift, stock-split, 
involuntary stock dividend, merger, acquisition, or other change in 
corporate ownership, exercise of preemptive right, or otherwise without 
specific intent to acquire the security, or, by an employee's spouse or 
minor child as part of a compensation package in connection with his or 
her employment;
    (ii) The employee makes full, written disclosure on FDIC form 2410/
07 to the Ethics Counselor within 30 days of the commencement of 
employment or the acquisition of the interest; and
    (iii) The employee is disqualified in accordance with 5 CFR part 
2635, subpart D, from participating in any particular matter that 
affects his or her financial interests, or that of his or her spouse or 
minor child;
    (4) Acquire, own, or control an interest in a publicly traded or 
publicly available investment fund provided that, upon initial or 
subsequent investment by the employee (excluding ordinary dividend 
reinvestment), the fund does not have invested, or indicate in its 
prospectus the intent to invest, more than 30 percent of its assets in 
the securities of one or more entities described in paragraph (a) of 
this section and the employee neither exercises control nor has the 
ability to exercise control over the financial interests held in the 
fund; and
    (5) Use an FDIC-insured depository institution or an affiliate of an 
FDIC-insured depository institution as custodian or trustee of accounts 
containing tax-deferred retirement funds.
    (c) Divestiture. Based upon a determination of substantial conflict 
under 5 CFR 2635.403(b), the Ethics Counselor may require an employee, 
or the spouse or minor child of an employee, to divest a security he or 
she is otherwise authorized to acquire, own, control, or use under 
paragraph (b) of this section.
    (d) Waiver. The Ethics Counselor may grant a written waiver from any 
provision of this section based on a determination made with the advice 
and legal clearance of the Legal Division that the waiver is not 
inconsistent with part 2635 of this title or otherwise prohibited by 
law, and that, under the particular circumstances, application of the 
prohibition is not necessary to avoid the appearance of misuse of 
position or loss of impartiality, or otherwise to ensure confidence in 
the impartiality and objectivity with which the FDIC's programs are 
administered. A waiver under this paragraph may impose appropriate 
conditions, such as requiring execution of a written disqualification.

[72 FR 19380, Apr. 18, 2007]



Sec.  3201.104  Restrictions concerning the purchase of property held 
by the Corporation or the RTC as conservator, receiver, or liquidator 
of the assets of an insured depository institution, or by a bridge bank 
organized by the Corporation.

    (a) Prohibition on purchase of property. An employee, and an 
employee's spouse or minor child shall not, directly or indirectly, 
purchase or acquire any property held or managed by the Corporation or 
the Resolution Trust Corporation (RTC) as conservator, receiver, or

[[Page 772]]

liquidator of the assets of an insured depository institution, or by a 
bridge bank organized by the Corporation, regardless of the method of 
disposition of the property.
    (b) Disqualification. An employee who is involved in the disposition 
of assets held by the Corporation or the RTC as conservator, receiver, 
or liquidator of the assets of an insured depository institution, or by 
a bridge bank organized by the Corporation shall not participate in the 
disposition of assets held in such capacities when the employee knows 
that any party with whom the employee has a covered relationship, as 
defined in 5 CFR 2635.502(b)(1), is or will be attempting to acquire 
such assets. The employee shall provide written notification of the 
disqualification to his or her immediate supervisor and the agency 
designee.



Sec.  3201.105  Prohibition on dealings with former employers, associates, 
and clients.

    (a) An employee is prohibited for one year from the date of entry on 
duty with the Corporation from participating in a particular matter when 
an employer, or the successor to the employer, for whom the employee 
worked at any time during the one year preceding the employee's entrance 
on duty is a party or represents a party to the matter.
    (b) For purposes of this section, the term employer means a person 
with whom the employee served as officer, director, trustee, general 
partner, agent, attorney, accountant, consultant, contractor, or 
employee.
    (c) The one-year prohibition imposed by paragraph (a) of this 
section, and the one-year period preceding the employee's entrance on 
duty specified in paragraph (a) of this section, may each be extended in 
an individual case based on a written determination by the agency 
designee that, under the particular circumstances, the employee's 
participation in the particular matter would cause a reasonable person 
with knowledge of the facts to question his or her impartiality.



Sec.  3201.106  Employment of family members outside the Corporation.

    (a) Disqualification of employees. An employee shall not participate 
in an examination, audit, investigation, application, contract, or other 
particular matter if the employer of the employee's spouse, child, 
parent, brother, sister, or a member of the employee's household is a 
party or represents a party to the matter, unless an agency designee 
authorizes the employee to participate using the standard in 5 CFR 
2635.502(d).
    (b) Reporting certain relationships. A covered employee shall make a 
written report to an agency designee within 30 days of the employment of 
the employee's spouse, child, parent, brother, sister, or a member of 
the employee's household by:
    (1) An FDIC-insured depository institution or its affiliate;
    (2) A firm or business with which, to the employee's knowledge, the 
Corporation has a contractual or other business or financial 
relationship; or
    (3) A firm or business which, to the employee's knowledge, is 
seeking a business or contractual relationship with the Corporation.



Sec.  3201.107  Outside employment and other activities.

    (a) Prohibition on employment with FDIC-insured depository 
institutions. An employee shall not provide service for compensation, in 
any capacity, to an FDIC-insured depository institution or an employee 
or person employed by or connected with such institution.
    (b) Use of professional licenses. A covered employee who holds a 
license related to real estate, appraisals, securities, or insurance and 
whose official duties with the Corporation require personal and 
substantial involvement in matters related to, respectively, real 
estate, appraisal, securities, or insurance is prohibited from using 
such license, other than in the performance of his or her official 
duties, for the production of income. The appropriate director, in 
consultation with an agency designee, may grant exceptions to this 
prohibition based on a finding that the specific transactions which 
require use

[[Page 773]]

of the license will not create an appearance of loss of impartiality or 
use of public office for private gain.
    (c) Responsibility to consult with agency designee. An employee who 
engages in, or intends to engage in, any outside employment or other 
activity that may require disqualification from the employee's official 
duties shall consult with an agency designee prior to engaging in or 
continuing to engage in the activity.



Sec.  3201.108  Related statutory and regulatory authorities.

    (a) 18 U.S.C. 213, which prohibits an examiner from accepting a loan 
or gratuity from an FDIC-insured depository institution examined by him 
or her or from any person connected with such institution.
    (b) 18 U.S.C. 1906, which prohibits disclosure of information from a 
bank examination report except as authorized by law.
    (c) 17 CFR 240.10b-5 which prohibits the use of manipulative or 
deceptive devices in connection with the purchase or sale of any 
security.
    (d) 18 U.S.C. 1909, which prohibits examiners from providing any 
service for compensation for any bank or person connected therewith.



Sec.  3201.109  Provisions of 5 CFR part 2635 not applicable to 
Corporation employees.

    The following provisions of 5 CFR part 2635 are not applicable to 
employees of the Corporation:
    (a) Because of the restrictions imposed by 18 U.S.C. 213 on 
examiners accepting loans or gratuities, an examiner in the Division of 
Supervision and Consumer Protection may not use any of the gift 
exceptions at 5 CFR 2635.204 to accept a gift from an FDIC-insured 
depository institution examined by him or her or from any person 
connected with such institution.
    (b) Provisions of 41 U.S.C. 423 (Procurement integrity) and the 
implementing regulations at 48 CFR 3.104 (of the Federal Acquisition 
Regulation) applicable to procurement officials referred to in:
    (1) 5 CFR 2635.202(c)(4)(iii);
    (2) The note following 5 CFR 2635.203(b)(7);
    (3) Example 5 following 5 CFR 2635.204(a);
    (4) Examples 2 and 3 following 5 CFR 2635.703(b)(3);
    (5) 5 CFR 2635.902(f), (h), (l), and (bb);
    (c) Provisions of 31 U.S.C. 1353 (Acceptance of travel and related 
expenses from non-Federal sources) and the implementing regulations at 
41 CFR part 304-1 (Acceptance of payment from a non-Federal source for 
travel expenses) referred to in 5 CFR 2635.203(b)(8)(i).
    (d) Provisions of 41 CFR Chapter 101 (Federal Property Management 
Regulations) referred to in 5 CFR 2635.205(a)(4).
    (e) Provisions of 41 CFR Chapter 201 (Federal Information Resources 
Management Regulation) referred to in Example 1 following 5 CFR 
2635.704(b)(2).

[60 FR 20174, Apr. 25, 1995, as amended at 67 FR 71070, Nov. 29, 2002]

                       PARTS 3202	3299 [RESERVED]

[[Page 775]]



                   CHAPTER XXIII--DEPARTMENT OF ENERGY




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                    Energy..................................         777
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                          PART 3300 [RESERVED]



PART 3301_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF ENERGY--Table of Contents



Sec.
3301.101 General.
3301.102 Procedure for accomplishing disqualification.
3301.103 Prior approval for outside employment.

    Authority: 5 U.S.C. 301, 7301; 5 U.S.C. App. (Ethics in Government 
Act); 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; 5 CFR 2635.105, 
2635.402(c), 2635.502(e), 2635.604, 2635.802, 2635.803.

    Source: 61 FR 35087, July 5, 1996, unless otherwise noted.



Sec.  3301.101  General.

    (a) Purpose. The regulations in this part apply to employees of the 
Department of Energy (DOE), excluding employees of the Federal Energy 
Regulatory Commission, and supplement the Standards of Ethical Conduct 
for Employees of the Executive Branch contained in 5 CFR part 2635. DOE 
employees are also subject to the regulations on financial disclosure 
contained in 5 CFR part 2634, and to additional regulations on 
responsibilities and conduct at 5 CFR part 735, and DOE specific 
provisions contained in 10 CFR part 1010.
    (b) Definitions. Unless a term is otherwise defined in this part, 
the definitions set forth in 5 CFR part 2635 apply to terms used in this 
part. In addition, for purposes of this part:
    Agency designee, as used also in 5 CFR part 2635, means the 
employee's immediate supervisor and, for purposes of the approval 
required by Sec.  3301.103(a), includes the Counselor.
    Counselor means the DOE's designated agency ethics official or his 
delegates.



Sec.  3301.102  Procedure for accomplishing disqualification.

    (a) Disqualifying financial interests. A DOE employee who is 
required, in accordance with 5 CFR 2635.402(c), to disqualify himself 
from participation in a particular matter to which he has been assigned 
shall, notwithstanding the guidance in 5 CFR 2635.402(c)(1) and (2), 
provide written notice of disqualification to his supervisor and 
counselor upon determining that he will not participate in the matter.
    (b) Disqualification to ensure impartiality. A DOE employee who is 
required, in accordance with 5 CFR 2635.502(e), to disqualify himself 
from participation in a particular matter involving specific parties to 
which he has been assigned shall, notwithstanding the guidance in 5 CFR 
2635.502(e)(1) and (2), provide written notice of disqualification to 
his supervisor and counselor upon determining that he will not 
participate in the matter.
    (c) Disqualification from matter effecting prospective employers. A 
DOE employee who is required, in accordance with 5 CFR 2635.604(a), to 
disqualify himself from participation in a particular matter to which he 
has been assigned shall, notwithstanding the guidance in 5 CFR 
2635.604(b) and (c), provide written notice of disqualification to his 
supervisor and counselor upon determining that he will not participate 
in the matter.
    (d) Withdrawal of notification. A DOE employee may withdraw written 
notice under paragraphs (a), (b), or (c) of this section upon deciding 
that disqualification from participation in the matter is no longer 
required. A withdrawal of notification shall be in writing and provided 
to the employee's supervisor and counselor.



Sec.  3301.103  Prior approval for outside employment.

    (a) Prior approval requirement. Before engaging in any outside 
employment, whether or not for compensation, an employee, other than a 
special Government employee, must obtain written approval of his 
immediate supervisor and the Counselor. Requests for approval shall 
include the name of the person, group or organization for whom the work 
is to be performed; the type of work to be performed; and the proposed 
hours of work and approximate dates of employment.
    (b) Standard for approval. Approval shall be granted unless there is 
a determination that the outside employment

[[Page 778]]

is expected to involve conduct prohibited by statute or Federal 
regulation, including 5 CFR part 2635.
    (c) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment or business 
relationship involving the provision of personal services by the 
employee. It includes but is not limited to personal services as an 
officer, director, trustee, general partner, agent, attorney, 
consultant, contractor, employee, advisor, or teacher. It does not 
include participating in the activities of a nonprofit, charitable, 
religious, public service or civic organization, unless such activities 
involve the provision of professional services or are for compensation.

                       PARTS 3302	3399 [RESERVED]

[[Page 779]]



           CHAPTER XXIV--FEDERAL ENERGY REGULATORY COMMISSION




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                    Regulatory Commission...................         781
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[[Page 781]]

                          PART 3400 [RESERVED]



PART 3401_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL ENERGY REGULATORY COMMISSION--Table of Contents



Sec.
3401.101 General.
3401.102 Prohibited financial interests.
3401.103 Procedures for accomplishing disqualification.
3401.104 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 42 U.S.C. 7171, 7172; 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; 5 CFR 2635.105, 2635.402(c), 2635.403, 2635.502(e), 2635.604, 
2635.803.

    Source: 61 FR 43414, Aug. 23, 1996, unless otherwise noted.



Sec.  3401.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Federal Energy Regulatory Commission 
(Commission) and supplement the Standards of Ethical Conduct for 
Employees of the Executive Branch contained in 5 CFR part 2635. In 
addition to the standards in 5 CFR part 2635 and this part, employees 
are subject to the executive branch financial disclosure regulations 
contained in 5 CFR part 2634, additional regulations on responsibilities 
and conduct at 5 CFR part 735, and Commission specific provisions 
contained in 18 CFR part 3c.



Sec.  3401.102  Prohibited financial interests.

    (a) General prohibition. No employee, and no spouse or minor child 
of an employee, shall acquire or hold any securities issued by an entity 
on the prohibited securities list described in paragraph (b) of this 
section. The list shall include, but not be limited to the following:
    (1) Natural gas companies;
    (2) Interstate oil pipelines;
    (3) Hydroelectric licensees or exemptees;
    (4) Public utilities;
    (5) Transmitting utilities or electric utilities engaged in the 
wholesale sale or transmission of electricity or having obtained an 
interconnection or wheeling order under part II of the Federal Power 
Act;
    (6) Liquefied natural gas terminals as defined by section 3 of the 
Natural Gas Act; or
    (7) Parent companies of an entity identified in paragraphs (a)(1) 
through (a)(6) of this section.
    (b) Prohibited securities list. A prohibited securities list shall 
be maintained, published, and distributed by the Office of the General 
Counsel's General and Administrative Law section, updated annually or on 
a more frequent basis to include entities that meet the criteria in 
paragraph (a) or are otherwise subject to the Commission's jurisdiction 
and to remove entities that do not raise impartiality concerns after 
considering the above criteria.
    (c) Exception. Nothing in this section prohibits an employee, or the 
spouse or minor child of an employee, from acquiring or holding an 
interest in a publicly traded or publicly available mutual fund or other 
collective investment fund, or in a widely held pension or mutual fund, 
provided: (1) That the employee neither exercises control nor has the 
ability to exercise control over the financial interests held in the 
fund; or (2) that the fund's prospectus or practice does not indicate 
the stated objective of concentrating its investments in entities 
identified in paragraphs (a)(1) through (a)(7) of this section.
    (d) Reporting and divestiture--(1) Reporting of prohibited 
securities. An employee must promptly report in writing to the DAEO any 
acquired interest prohibited under paragraphs (a) and (b) of this 
section. New employees must report in writing to the DAEO prohibited 
financial interests within 30 days of commencement of employment. 
Prohibited financial interests acquired after employment commences and 
without specific intent, such as through gift, inheritance, or marriage, 
must be reported in writing to the DAEO within 30 days of acquisition of 
such interest.
    (2) Divestiture of prohibited securities. A prohibited financial 
interest must be

[[Page 782]]

divested within 90 days from the date divestiture is ordered by the DAEO 
unless the employee obtains a written waiver from the DAEO in accordance 
with this section.
    (3) Disqualification pending divestiture. Pending divestiture of 
prohibited securities, an employee must disqualify himself or herself, 
in accordance with 5 CFR 2635.402 and 3401.103, from participating in 
particular matters which, as a result of continued ownership of 
prohibited securities, could affect the financial interests of the 
employee or those of the spouse or minor child of the employee. 
Disqualification is not required where a waiver described in Sec.  
2635.402(d) applies.
    (4) Tax treatment of gain on divested securities. Where divestiture 
is required by this section, the employee or the spouse or minor child 
of an employee may be eligible to defer the tax consequences of 
divestiture by obtaining a Certificate of Divestiture from the Director 
of the Office of Government Ethics before selling the securities in 
accordance with subpart J of 5 CFR part 2634.
    (e) Waiver. The DAEO may grant a written waiver from this section 
based on a determination that the waiver is not inconsistent with 5 CFR 
part 2635 of this title or otherwise prohibited by law and that, under 
the particular circumstances, application of the prohibition is not 
necessary to avoid the appearance of an employee's misuse of position or 
loss of impartiality, or to otherwise ensure confidence in the 
impartiality and objectivity with which the Commission's programs are 
administered, or in the case of a special Government employee, 
divestiture would result in substantial financial hardship. A waiver 
under this paragraph must be in writing and may impose appropriate 
conditions, such as requiring execution of a written disqualification.
    (f) Definitions. For the purposes of this section:
    (1) The term securities includes an interest in debt or equity 
instruments. The term includes, without limitation, secured and 
unsecured bonds, debentures, notes, securitized assets, and commercial 
paper, as well as all types of preferred and common stock. The term 
encompasses both current and contingent ownership interests, including 
any beneficial or legal interest derived from a trust. It extends to any 
right to acquire or dispose of any long or short position in such 
securities and includes, without limitation, interests convertible into 
such securities, as well as options, rights, warrants, puts, calls, and 
straddles with respect thereto.
    (2) The term parent means a company that possesses, directly or 
indirectly, the power to direct or cause the direction of the management 
and policies of an entity identified in paragraphs (a)(1) through (a)(6) 
of this section.

[76 FR 1336, Jan. 10, 2011]



Sec.  3401.103  Procedures for accomplishing disqualification.

    (a) An employee, other than a member of the Commission, who is 
required, in accordance with 5 CFR 2635.402(c), 2635.502(e), or 
2635.604(a), to disqualify himself from participation in a particular 
matter before the Commission shall provide written notice of 
disqualification to his supervisor and to the DAEO when he becomes aware 
of the need to disqualify himself from participation in the matter. This 
procedure is required notwithstanding the guidance in 5 CFR 
2635.402(c)(2), 2635.502(e)(2), and 2635.604(c).
    (b) An employee may withdraw written notice under paragraph (a) of 
this section upon determining that disqualification from participation 
in the matter is no longer required. A withdrawal of disqualification 
shall be in writing and shall be provided to the employee's supervisor 
and to the DAEO.



Sec.  3401.104  Prior approval for outside employment.

    (a) Prior approval requirement. An employee, other than a special 
Government employee, must obtain written approval from the DAEO through 
normal supervisory channels before engaging in outside employment with 
any person who is a ``prohibited source'' as that term is defined at 5 
CFR 2635.203(d).
    (b) Approval of requests. Approval under this section shall be 
denied only upon a determination by the DAEO that the outside activity 
is expected to involve conduct prohibited by statute

[[Page 783]]

or Federal regulations, including 5 CFR part 2635.
    (c) Definitions. For purposes of this section, ``employment'' means 
any form of non-Federal employment or business relationship or activity 
involving the provision of personal services by the employee for 
compensation other than reimbursement of actual and necessary expenses. 
It includes, but is not limited to, personal services as an officer, 
director, employee, agent, attorney, consultant, contractor, general 
partner, or trustee.

                       PARTS 3402	3499 [RESERVED]

[[Page 785]]



                 CHAPTER XXV--DEPARTMENT OF THE INTERIOR




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                    Interior................................         787
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[[Page 787]]

                          PART 3500 [RESERVED]



PART 3501_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF THE INTERIOR--Table of Contents



Sec.
3501.101 General.
3501.102 Designation of separate agency components.
3501.103 Prohibited interests in Federal lands.
3501.104 Prohibited interests in mining.
3501.105 Outside employment and activities.

    Authority: 5 U.S.C. 301, 7301; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 30 U.S.C. 1211; 43 U.S.C. 11, 31(a); E.O. 12674, 3 CFR, 
1989 Comp., p. 215, as modified by E.O. 12731, 3 CFR, 1990 Comp., p. 
306; 5 CFR 2635.105, 2635.203(a), 2635.403(a), 2635.502, 2635.803, 
2635.807.

    Source: 62 FR 53718, Oct. 16, 1997, unless otherwise noted.



Sec.  3501.101  General.

    (a) In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Department of the Interior and supplement the 
Standards of Ethical Conduct for Employees of the Executive Branch 
contained in 5 CFR part 2635. In addition to the regulations in 5 CFR 
part 2635 and this part, employees of the Department are subject to the 
employee responsibilities and conduct regulations at 5 CFR part 735; the 
executive branch financial disclosure regulations at 5 CFR part 2634; 
and the Department's employee responsibilities and conduct regulations 
at 43 CFR part 20.
    (b) Definitions. As used in this part:
    (1) Department means the U.S. Department of the Interior and any of 
its components.
    (2) Bureau means each major program operating component of the 
Department, the Office of the Secretary, the Office of the Solicitor, 
and the Office of the Inspector General.
    (3) Ethics Counselor means the head of each bureau, except that the 
Deputy Assistant Secretary for Policy is the Ethics Counselor for 
employees within the Office of the Secretary.
    (4) Deputy Ethics Counselor means the bureau personnel officer or 
other qualified headquarters employee who has been delegated 
responsibility for the operational duties of the Ethics Counselor for 
the bureau.
    (c) Bureau instructions. With the concurrence of the Designated 
Agency Ethics Official, each Ethics Counselor is authorized, consistent 
with 5 CFR 2635.105(c), to issue explanatory guidance and establish 
procedures necessary to implement this part and part 2635 of this title 
for his or her bureau.

[62 FR 53718, Oct. 16, 1997, as amended at 63 FR 34259, June 24, 1998]



Sec.  3501.102  Designation of separate agency components.

    (a) Each of the following eleven components of the Department is 
designated as an agency separate from each of the other ten listed 
components and, for employees of that component, as an agency distinct 
from the remainder of the Department, for purposes of the regulations in 
subpart B of 5 CFR part 2635 governing gifts from outside sources, 5 CFR 
2635.807 governing teaching, speaking and writing, and Sec.  3501.105 
requiring prior approval of outside employment. However, the following 
eleven components are not deemed to be separate agencies for purposes of 
applying any provision of 5 CFR part 2635 or this part to employees of 
the remainder of the Department:
    (1) Bureau of Indian Affairs, including the Office of Indian 
Education Programs;
    (2) Bureau of Land Management;
    (3) Bureau of Reclamation;
    (4) Bureau of Ocean Energy Management;
    (5) Bureau of Safety and Environmental Enforcement;
    (6) National Indian Gaming Commission;
    (7) National Park Service;
    (8) Office of Surface Mining Reclamation and Enforcement;
    (9) Office of the Special Trustee for American Indians;
    (10) U.S. Fish and Wildlife Service; and
    (11) U.S. Geological Survey.
    (b) Employees in components not listed in paragraph (a) of this 
section (including employees within the immediate office of each 
Assistant Secretary) are employees of the remainder

[[Page 788]]

of the Department, which for those employees shall include the 
components designated in this section as well as those parts of the 
Department not designated in this section.

    Example 1: A company that conducts activities regulated by the 
Bureau of Land Management would not be a prohibited source of gifts for 
an employee of the National Park Service (NPS), unless that company 
seeks official action by the NPS; does business or seeks to do business 
with the NPS; conducts activities that are regulated by the NPS; or has 
interests that may be substantially affected by the performance or 
nonperformance of that employee's official duties.
    Example 2: A paralegal who works part-time in the Office of the 
Solicitor wants to take an additional part-time job with a private 
company that does business with the U.S. Geological Survey. The company 
is a prohibited source for the paralegal, since the company does 
business with a component of the Department from which his component has 
not been listed as separate in Sec.  3501.102(a). The paralegal must 
obtain prior approval for the outside employment, because Sec.  3501.105 
requires employees to obtain such approval before engaging in outside 
employment with a prohibited source.

[62 FR 53718, Oct. 16, 1997, as amended at 81 FR 76290, Nov. 2, 2016]



Sec.  3501.103  Prohibited interests in Federal lands.

    (a) Cross-references to statutory prohibitions--(1) Prohibited 
purchases of public land by Bureau of Land Management employees. As set 
forth in 43 CFR 20.401, the officers, clerks, and employees in the 
Bureau of Land Management are prohibited by 43 U.S.C. 11 from directly 
or indirectly purchasing or becoming interested in the purchase of any 
of the public lands.
    (2) Prohibited interests in the lands or mineral wealth of the 
region under survey for U.S. Geological Survey employees. As set forth 
in 43 CFR 20.401, the Director and members of the U.S. Geological Survey 
are prohibited by 43 U.S.C. 31(a) from having any personal or private 
interests in the lands or mineral wealth of the region under survey.
    (b) Prohibited financial interests in Federal lands for employees of 
the Bureau of Ocean Energy Management, the Bureau of Safety and 
Environmental Enforcement, and the Office of Natural Resources Revenue 
and for the Secretary and employees of the Office of the Secretary and 
other Departmental offices reporting directly to a Secretarial officer 
who are in positions classified at GS-15 and above. (1) Except as 
provided in paragraph (b)(2) of this section, the following employees 
may not acquire or hold any direct or indirect financial interest in 
Federal lands or resources administered or controlled by the Department:
    (i) All employees of the Bureau of Ocean Energy Management, Bureau 
of Safety and Environmental Enforcement, and Office of Natural Resources 
Revenue; and
    (ii) The Secretary and employees of the Office of the Secretary and 
other Departmental offices reporting directly to a Secretarial officer 
who are in positions classified at GS-15 and above. As used in this 
section, ``Office of the Secretary and other Departmental Offices 
reporting directly to a Secretarial officer'' means the Immediate Office 
of the Secretary; Office of the Solicitor; Office of the Inspector 
General; Office of Communications; Office of Congressional and 
Legislative Affairs; all Assistant Secretaries, their immediate Office 
staff and heads of bureaus which are subordinate to an Assistant 
Secretary. This includes the following offices under the Office of the 
Assistant Secretary--Policy, Management and Budget: Office of Budget, 
Office of Hearings and Appeals, Office of Acquisition & Property 
Management, Office of Environmental Policy and Compliance, Office of 
Policy Analysis, Office of Financial Management, and Office of 
Information Resources Management.
    (2) Exceptions. The prohibition in paragraph (b)(1) of this section 
does not apply to:
    (i) An individual employed on an intermittent or seasonal basis for 
a period not exceeding 180 working days in each calendar year; or
    (ii) A special Government employee engaged in field work relating to 
land, range, forest, and mineral conservation and management activities.
    (c) Prohibition as to Department-granted rights in Federal lands. 
(1) Except as provided in paragraph (c)(2) of this section, employees 
and their spouses and their minor children are prohibited from acquiring 
or retaining any claim,

[[Page 789]]

permit, lease, small tract entries, or other rights that are granted by 
the Department in Federal lands.
    (2) Exceptions. (i) Nothing in paragraph (c)(1) of this section 
prohibits the recreational or other personal and noncommercial use of 
Federal lands by an employee, or the employee's spouse or minor child, 
on the same terms as use of Federal lands is available to the general 
public.
    (ii) Unless otherwise prohibited by law, employees in the Office of 
the Assistant Secretary--Indian Affairs, or in the Bureau of Indian 
Affairs, and the spouses and minor children of such employees, are not 
prohibited by paragraph (c)(1) of this section from acquiring or 
retaining rights in Federal lands controlled by the Department for the 
benefit of Indians or Alaska Natives.
    (d) Divestiture. The Designated Agency Ethics Official may require 
an employee to divest an interest the employee is otherwise authorized 
to retain under an exception listed in this section, based on a 
determination of substantial conflict under Sec.  2635.403(b) of this 
title.
    (e) Waivers. The Designated Agency Ethics Official may grant a 
written waiver from the prohibitions contained in paragraphs (b) and (c) 
of this section, based on a determination that the waiver is not 
inconsistent with 5 CFR part 2635 or otherwise prohibited by law and 
that, under the particular circumstances, application of the prohibition 
is not necessary to avoid the appearance of misuse of position or loss 
of impartially, or otherwise to ensure confidence in the impartiality 
and objectivity with which Department programs are administered. A 
waiver under this paragraph may be accompanied by appropriate 
conditions, such as acquiring execution of a written statement of 
disqualification. Notwithstanding the grant of any waiver, an employee 
remains subject to the disqualification requirements of 5 CFR 2635.402 
and 2635.502.
    (f) Pre-existing interests. An employee may retain a financial 
interest otherwise prohibited by paragraph (b) or (c) of this section 
which was approved in writing under criteria and procedures in effect 
before November 2, 1996, unless the approval is withdrawn by the 
Designated Agency Ethics Official, subject to the standards for waivers 
in paragraph (e) of this section.

[62 FR 53718, Oct. 16, 1997, as amended at 81 FR 76290, Nov. 2, 2016]



Sec.  3501.104  Prohibited interests in mining.

    (a) Cross-reference to statutory prohibition. As set forth in 30 CFR 
part 706 and 43 CFR 20.402, employees of the Office of Surface Mining 
Reclamation and Enforcement and other employees who perform functions or 
duties under the Surface Mining Control and Reclamation Act of 1977, 30 
U.S.C. 1201 et seq., are prohibited by 30 U.S.C. 1211(f) from having a 
direct or indirect financial interest in underground or surface coal 
mining operations.
    (b) Prohibited interests in private mining activities in the United 
States for U.S. Geological Survey employees, their spouses, and minor 
children. (1) Except as provided in this section, no employee of the 
U.S. Geological Survey (USGS), or spouse or minor child of a USGS 
employee, shall have a direct or indirect financial interest in private 
mining activities in the United States.
    (2) Definitions. For purposes of applying the prohibition in 
paragraph (b)(1) of this section:
    (i) Financial interest has the meaning set forth in 5 CFR 
2635.403(c), and includes an employee's legal or beneficial interest in 
a trust.
    (ii) Private mining activities means exploration, development, and 
production of oil, gas, and other minerals on land in the United States 
that is not owned by the Federal government or by a State or local 
government.
    (3) Exceptions. The prohibition set forth in paragraph (b)(1) of 
this section does not apply to:
    (i)(A) Financial interests worth $5000 or less, for employees (or 
their spouses and minor children) of the Office of the Director and the 
Geologic Division, or
    (B) A single financial interest worth $5000 or less or an aggregate 
of financial interests worth $15,000 or less, for employees (or their 
spouses and minor children) of all other USGS organizational elements;
    (ii) Mineral royalties and overriding royalty interests of $600 per 
year or less;

[[Page 790]]

    (iii) A publicly traded or publicly available investment fund (e.g., 
a mutual fund) which, in its prospectus, does not indicate the objective 
or practice of concentrating its investments in entities engaged in 
private mining activities in the United States, if the employee neither 
exercises control nor has the ability to exercise control over the 
financial interests held in the fund;
    (iv) A legal or beneficial interest in a qualified profit sharing, 
retirement, or similar plan, provided that the plan does not invest more 
than 25 percent of its funds in debt or equity instruments of entities 
engaged in private mining activities in the United States, and the 
employee neither exercise control nor has the ability to exercise 
control over the financial interests held in the plan; or
    (v) The ownership of a financial interest by an employee's spouse or 
minor child where the spouse or minor child obtained the interest 
through:
    (A) A gift from someone other than the employee or a member of the 
employee's household;
    (B) Inheritance;
    (C) Acquisition prior to the employee's becoming a USGS employee;
    (D) Acquisition prior to marriage to a USGS employee; or
    (E) A compensation package in connection with the employment of the 
spouse or minor child.
    (4) Divestiture. The Director of the U.S. Geological Survey may 
require an employee to divest an interest the employee is otherwise 
authorized to retain under an exception listed in paragraph (b)(3) of 
this section, based on a determination of substantial conflict under 
Sec.  2635.403(b) of this title.
    (5) Waivers. The Director of the U.S. Geological Survey may grant a 
written waiver from the prohibition contained in paragraph (b)(1) of 
this section, based on a determination that the waiver is not 
inconsistent with 5 CFR part 2635 or otherwise prohibited by law, and 
that, under the particular circumstances, application of the prohibition 
is not necessary to avoid the appearance of misuse of position or loss 
of impartiality, or otherwise to ensure confidence in the impartiality 
and objectivity with which Department programs are administered. A 
waiver under this paragraph may be accompanied by appropriate 
conditions, such as requiring execution of a written statement of 
disqualification. Notwithstanding the granting of any waiver, an 
employee remains subject to the disqualification requirements of 5 CFR 
2635.402 and 2635.502.
    (6) Pre-existing interests. A spouse or minor child of an employee 
may retain a financial interest otherwise prohibited by paragraph (b)(1) 
of this section which was permitted under criteria and procedures in 
effect before November 2, 1996, unless the Director of the U.S. 
Geological Survey determines in writing that such retention is 
inconsistent with the standards for waivers in paragraph (b)(5) of this 
section.

[62 FR 53718, Oct. 16, 1997; 63 FR 18501, Apr. 15, 1998]



Sec.  3501.105  Outside employment and activities.

    (a) Prohibited outside employment and activities. (1) Under 43 
U.S.C. 31(a), employees of the U.S. Geological Survey shall execute no 
surveys or examinations for private parties or corporations.
    (2) Employees in the Bureau of Land Management may not engage in 
outside employment as real estate agents and realty specialists. Such 
employees are not required to cancel a real estate license, but may 
maintain the license on an inactive basis.
    (3) Employees in the Office of the Assistant Secretary--Indian 
Affairs, or in the Bureau of Indian Affairs (BIA), may not hold a 
position on a tribal election board or on a tribal school board which 
oversees BIA schools.

    Note to paragraph (a)(3): Except for membership on a tribal election 
board and a tribal school board which oversees BIA schools, an eligible 
person employed in the Office of the Assistant Secretary--Indian Affairs 
or in the BIA may become a candidate for office in his local tribe or 
may be appointed as a representative of his local tribe if prior 
approval is obtained from the Deputy Assistant Secretary--Indian Affairs 
pursuant to paragraph (b) of this section.

    (b) Prior approval of outside employment--(1) Prior approval 
requirement. (i) An employee of the Department, other than an employee 
of the U.S. Geological Survey or a special Government

[[Page 791]]

employee, shall obtain written approval from his ethics counselor or 
other agency designee before engaging in outside employment with a 
prohibited source.
    (ii)(A) An employee of the U.S. Geological Survey (USGS), other than 
a special Government employee, shall obtain written approval from the 
USGS deputy ethics counselor before engaging in any outside employment.
    (B) The USGS may issue instructions exempting categories of 
employment from the prior approval requirement in paragraph 
(b)(1)(ii)(A) of this section, based on a determination that the 
employment within those categories would generally be approved and are 
not likely to involve conduct prohibited by statute or Federal 
regulation, including 5 CFR part 2635 and this part.
    (2) Form of request for approval. (i) A request for prior approval 
of outside employment shall include, at a minimum, the following:
    (A) The employee's name, occupational title, office address, and 
office telephone number;
    (B) A brief description of the employee's official duties;
    (C) The nature of the outside employment, including a full 
description of the specific duties or services to be performed;
    (D) The name and address of the prospective outside employer; and
    (E) A statement that the employee currently has no official duties 
involving a matter that affects the outside employer and will disqualify 
himself from future participation in matters that could directly affect 
the outside employer.
    (ii) Upon a significant change in the nature of the outside 
employment or in the employee's official position, the employee shall 
submit a revised request for approval.
    (3) Standard for approval. Approval shall be granted unless a 
determination is made that the outside employment is expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635 and this part.
    (4) Definitions. As used in this section:
    (i) Employment means any form of non-Federal business relationship 
involving the provision of personal services by the employee, with or 
without compensation. It includes but is not limited to personal 
services as an officer, director, employee, agent, attorney, consultant, 
contractor, general partner, trustee, teacher, or speaker. It includes 
writing done under an arrangement with another person for production or 
publication of the written product. It does not, however, include 
participation in the activities of a nonprofit charitable, religious, 
professional, social, fraternal, educational, recreational, public 
service, or civic organization, unless the participation involves the 
provision of professional services or advice for compensation other than 
reimbursement for actual expenses.
    (ii) Prohibited source has the meaning in 5 CFR 2635.203(d), as 
supplemented by Sec.  3501.102, and includes any person who:
    (A) Is seeking official action by the Department or, in the case of 
an employee of one of the separate agency components designated in Sec.  
3501.102(a), by that component;
    (B) Does business or seeks to do business with the Department, or in 
the case of an employee of one of the separate agency components 
designated in Sec.  3501.102(a), with that component;
    (C) Conducts activities regulated by the Department or, in the case 
of an employee of one of the separate agency components designated in 
Sec.  3501.102(a), by that component;
    (D) Has interests that may be substantially affected by the 
performance or nonperformance of the employee's official duties; or
    (E) Is an organization a majority of whose members are described in 
paragraphs (b)(4)(ii) (A) through (D) of this section.

[62 FR 53718, Oct. 16, 1997, as amended at 63 FR 34259, June 24, 1998]

                       PARTS 3502	3599 [RESERVED]

[[Page 793]]



                   CHAPTER XXVI--DEPARTMENT OF DEFENSE




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                          PART 3600 [RESERVED]



PART 3601_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF DEFENSE--Table of Contents



Sec.
3601.101 Purpose.
3601.102 Designation of separate agency components.
3601.103 Additional exceptions for gifts from outside sources.
3601.104 Additional limitations on gifts between DoD employees.
3601.105 Standards for accomplishing disqualification.
3601.106 Limitation on solicited sales.
3601.107 Prior approval for outside employment and business activities.
3601.108 Disclaimer for speeches and writing devoted to agency matters.

    Authority: 5 U.S.C. 301, 7301, 7351, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 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; 
5 CFR 2635.105, 2635.203(a), 2635.204(k), 2635.803.

    Source: 58 FR 47622, Sept. 10, 1993, unless otherwise noted.



Sec.  3601.101  Purpose.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Department of Defense (DoD) and supplement the 
Standards of Ethical Conduct for Employees of the Executive Branch 
contained in 5 CFR part 2635. DoD employees are required to comply with 
part 2635, this part, and implementing guidance and procedures.



Sec.  3601.102  Designation of separate agency components.

    (a) Pursuant to 5 CFR 2635.203(a), each of the following components 
of DoD is designated as a separate agency for purposes of the 
regulations in subpart B of 5 CFR part 2635 governing gifts from outside 
sources and 5 CFR 2635.807 governing teaching, speaking and writing:
    (1) Armed Services Board of Contract Appeals;
    (2) Department of the Army;
    (3) Department of the Navy;
    (4) Department of the Air Force;
    (5) Defense Commissary Agency;
    (6) Defense Contract Audit Agency;
    (7) Defense Finance and Accounting Service;
    (8) Defense Information Systems Agency;
    (9) Defense Intelligence Agency;
    (10) Defense Logistics Agency;
    (11) Defense Security Service;
    (12) Defense Threat Reduction Agency;
    (13) National Imagery and Mapping Agency;
    (14) National Security Agency;
    (15) Office of the Inspector General; and
    (16) Uniformed Services University of the Health Sciences.
    (b) Employees of DoD components not designated as separate agencies, 
including employees of the Office of the Secretary of Defense, will be 
treated as employees of DoD which shall be treated as a single agency 
that is separate from the above listed agencies for purposes of 
determining whether the donor of a gift is a prohibited source under 5 
CFR 2635.203(d) and for identifying the DoD employee's agency under 5 
CFR 2635.807 governing teaching, speaking and writing.

[58 FR 47622, Sept. 10, 1993, as amended at 68 FR 64980, Nov. 18, 2003]



Sec.  3601.103  Additional exceptions for gifts from outside sources.

    In addition to the gifts which come within the exceptions set forth 
in 5 CFR 2635.204, and subject to all provisions of 5 CFR 2635.201 
through 2635.205, a DoD employee may accept gifts from outside sources 
otherwise prohibited by 5 CFR 2635.202(a) as follows:
    (a) Events sponsored by States, local governments or civic 
organizations. A DoD employee may accept a sponsor's unsolicited gift of 
free attendance for himself and an accompanying spouse at an event 
sponsored by a State or local government or by a civic organization 
exempt from taxation under 26 U.S.C. 501(c)(4) when:
    (1) The agency designee has determined that the community relations 
interests of the agency will be served by the DoD employee's attendance;
    (2) The cost of the DoD employee's and the spouse's attendance is 
provided by the sponsor in accordance with 5 CFR 2635.204(g)(5); and

[[Page 796]]

    (3) The gift of free attendance meets the definition in 5 CFR 
2635.204(g)(4).
    (b) Scholarships and grants. A DoD employee, or the dependent of a 
DoD employee, may accept an educational scholarship or grant from an 
entity that does not have interests that may be substantially affected 
by the performance or non-performance of the involved DoD employee's 
official duties, or from an association or similar entity that does not 
have a majority of members with such interests, if the designated agency 
ethics official or designee determines that:
    (1) The scholarship or grant is made as part of an established 
program of grants or awards that is funded, wholly or in part, to ensure 
its continuation on a regular basis and under which recipients are 
selected pursuant to written standards; or
    (2) The scholarship or grant is established for the benefit of DoD 
employees, or the dependents of DoD employees, and recipients are 
selected pursuant to written standards approved by the Secretary of 
Defense or, where the scholarship or grant is available only to military 
members or their dependents, by the Secretary of the military department 
concerned.



Sec.  3601.104  Additional limitations on gifts between DoD employees.

    The following limitations shall apply to gifts from groups of DoD 
employees that include a subordinate and to voluntary contributions to 
gifts for superiors permitted under 5 CFR 2635.304(c)(1):
    (a) Gifts from a group that includes a subordinate. Regardless of 
the number of DoD employees contributing to a gift on a special, 
infrequent occasion as permitted by 5 CFR 2635.304(c)(1), a DoD employee 
may not accept a gift or gifts from a donating group if the market value 
exceeds an aggregate of $300 and if the DoD employee knows or has reason 
to know that any member of the donating group is his subordinate.
    (1) The cost of items excluded from the definition of a gift by 5 
CFR 2635.203(b) and the cost of food, refreshments and entertainment 
provided to the DoD employee and his personal guests to mark the 
occasion for which the gift is given shall not be included in 
determining whether the value of a gift or gifts exceeds the $300 
aggregate limit.
    (2) The value of a gift or gifts from two or more donating groups 
shall be aggregated and shall be considered to be from a single donating 
group if the DoD employee offered the gift knows or has reason to know 
that an individual who is his subordinate is a member of more than one 
of the donating groups.
    (b) Voluntary contribution. For purposes of 5 CFR 2635.304(c)(1), 
the nominal amount of a voluntary contribution that a DoD employee may 
solicit from another DoD employee for a group gift to the contributing 
DoD employee's superior for any special, infrequent occasion shall not 
exceed $10. A voluntary contribution of a nominal amount for food, 
refreshments and entertainment for the superior, the personal guests of 
the superior and other attendees at an event to mark the occasion for 
which a group gift is given may be solicited as a separate, voluntary 
contribution not subject to the $10 limit.



Sec.  3601.105  Standards for accomplishing disqualification.

    (a) Disqualifying financial interests. A DoD employee who is 
required, in accordance with 5 CFR 2635.402(c), to disqualify himself 
from participation in a particular matter to which he has been assigned 
shall, notwithstanding the guidance in 5 CFR 2635.4029(c) (1) and (2), 
provide written notice of disqualification to his supervisor upon 
determining that he will not participate in the matter.
    (b) Disqualification to ensure impartiality. A DoD employee who is 
required, in accordance with 5 CFR 2635.502(e), to disqualify himself 
from participation in a particular matter involving specific parties to 
which he has been assigned shall, notwithstanding the guidance in 5 CFR 
2635.502(e) (1) and (2), provide written notice of disqualification to 
his supervisor upon determining that he will not participate in the 
matter.
    (c) Disqualification from matter effecting prospective employees. A 
DoD employee who is required, in accordance with 5 CFR 2635.604(a), to 
disqualify

[[Page 797]]

himself from participation in a particular matter to which he has been 
assigned shall, notwithstanding the guidance in 5 CFR 2635.604 (b) and 
(c), provide written notice of disqualification to his supervisor upon 
determining that he will not participate in the matter.
    (d) Withdrawal of notification. A DoD employee may withdraw written 
notice under paragraphs (a), (b) or (c) of this section upon deciding 
that disqualification from participation in the matter is no longer 
required.



Sec.  3601.106  Limitation on solicited sales.

    A DoD employee shall not knowingly solicit or make solicited sales 
to DoD personnel who are junior in rank, grade or position, or to the 
family members of such personnel, on or off duty. In the absence of 
coercion or intimidation, this does not prohibit the sale or lease of a 
DoD employee's noncommercial personal or real property or commercial 
sales solicited and made in a retail establishment during off-duty 
employment. The posting of an advertisement in accordance with Federal 
building management policies does not constitute solicitation for 
purposes of this section.



Sec.  3601.107  Prior approval for outside employment and business activities.

    (a) A DoD employee, other than a special Government employee, who is 
required to file a financial disclosure report (SF 450 or SF 278) shall 
obtain written approval from the agency designee before engaging in a 
business activity or compensated outside employment with a prohibited 
source, unless general approval has been given in accordance with 
paragraph (b) of this section. Approval shall be granted unless a 
determination is made that the business activity or compensated outside 
employment is expected to involve conduct prohibited by statute or 
regulation. For purposes of this section, the following definitions 
apply:
    (1) Business activity. Any business, contractual or other financial 
relationship not involving the provision of personal services by the DoD 
employee. It does not include a routine commercial transaction or the 
purchase of an asset or interest, such as common stock, that is 
available to the general public;
    (2) Employment. Any form of non-Federal employment or business 
relationship involving the provision of personal services by the DoD 
employee. It includes, but is not limited to, personal services as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner or trustee; and
    (3) Prohibited source. See 5 CFR 2635.203(d) (modified by the 
separate DoD component agency designations in Sec.  3601.102 of this 
part).
    (b) The DoD component designated agency ethics official or designee 
may, by a written notice, exempt categories of business activities or 
employment from the requirement of paragraph (a) of this section, for 
prior approval based on a determination that business activities or 
employment within those categories would generally be approved and are 
not likely to involve conduct prohibited by statute or regulation.



Sec.  3601.108  Disclaimer for speeches and writings devoted to agency matters.

    A DoD employee who uses or permits the use of his military rank or 
who includes or permits the inclusion of his title or position as one of 
several biographical details given to identify himself in connection 
with teaching, speaking or writing, in accordance with 5 CFR 
2635.807(b), shall make a disclaimer if the subject of the teaching, 
speaking or writing deals in significant part with any ongoing or 
announced policy, program or operation of the DoD employee's agency, as 
defined in Sec.  3601.102, and the DoD employee has not been authorized 
by appropriate agency authority to present that material as the agency's 
position. The disclaimer shall be made as follows:
    (a) The required disclaimer shall expressly state that the views 
presented are those of the speaker or author and do not necessarily 
represent the views of DoD or its components.
    (b) Where a disclaimer is required for an article, book or other 
writing, the disclaimer will be printed in a reasonably prominent 
position in the writing itself.

[[Page 798]]

    (c) Where a disclaimer is required for a speech or other oral 
presentation, the disclaimer may be given orally provided it is given at 
the beginning of the oral presentation.

                       PARTS 3602	3699 [RESERVED]

[[Page 799]]



                  CHAPTER XXVIII--DEPARTMENT OF JUSTICE




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                    Justice.................................         801
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                          PART 3800 [RESERVED]



PART 3801_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF JUSTICE--Table of Contents



Sec.
3801.101 General.
3801.102 Detailed or assigned special agents of certain Departmental 
          components.
3801.103 Designation of separate Departmental components.
3801.104 Purchase or use of certain forfeited and other property.
3801.105 Personal use of Government property.
3801.106 Outside employment.
3801.107 Additional rules for Bureau of Alcohol, Tobacco, Firearms, and 
          Explosives employees.

    Authority: 5 U.S.C. 301, 7301; 5 U.S.C. App.; 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; E.O. 12988, 61 FR 4739; 5 CFR 
2635.105, 2635.203(a), 2635.403(a), 2635.701-2635.705, 2635.803, 
2635.807(a)(2)(ii); and DOJ Order 1200.1, Chap 11-1.

    Source: 62 FR 23942, May 2, 1997, unless otherwise noted.



Sec.  3801.101  General.

    In accordance with Sec.  2635.105 of this title, the regulations in 
this part apply to employees of the Department of Justice and supplement 
the Standards of Ethical Conduct for Employees of the Executive Branch 
in part 2635 of this title. In addition to the regulations contained in 
part 2635 of this title and in this part, employees are subject to the 
conduct regulations contained in part 735 of this title and 28 CFR part 
45.



Sec.  3801.102  Detailed or assigned special agents of certain 
Departmental components.

    Notwithstanding a detail or assignment to another entity, any 
special agent of the Federal Bureau of Investigation or Drug Enforcement 
Administration who is subject to the regulations or standards of ethical 
conduct of that entity pursuant to Sec.  2635.104 of this title shall 
also remain subject to the regulations in this part.



Sec.  3801.103  Designation of separate Departmental components.

    (a) Pursuant to Sec.  2635.203(a) of this title, each of the 
following components is designated as a separate agency for purposes of 
the regulations contained in subpart B of part 2635 of this title 
governing gifts from outside sources, and, accordingly, Sec.  2635.807 
of this title governing teaching, speaking, and writing:

Antitrust Division
Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)
Bureau of Prisons (including Federal Prison Industries, Inc.)
Civil Division
Civil Rights Division
Community Relations Service
Criminal Division
Drug Enforcement Administration
Environment and Natural Resources Division
Executive Office for Immigration Review
Executive Office for United States Attorneys
(The Executive Office for United States Attorneys shall not be 
considered separate from any Office of the United States Attorney for a 
judicial district, but only from other designated components of the 
Department of Justice.)
Executive Office for United States Trustees
(The Executive Office for United States Trustees shall not be considered 
separate from any Office of the United States Trustee for a region, but 
only from other designated components of the Department of Justice.)
Federal Bureau of Investigation
Foreign Claims Settlement Commission
Immigration and Naturalization Service
Independent Counsel appointed by the Attorney General
INTERPOL
National Drug Intelligence Center
Justice Management Division
Office of Information and Privacy
Office of Intelligence Policy and Review
Office of Community Oriented Policing Services
Office of Justice Programs
Office of the Pardon Attorney
Office of Policy Development
Offices of the United States Attorney (94) (Each Office of the United 
States Attorney for a judicial district shall be considered a separate 
component from each other such office.)
Offices of the United States Trustee (21) (Each Office of the United 
States Trustee for a region shall be considered a separate component 
from each other such office.)
Tax Division
United States Marshals Service

[[Page 802]]

United States Parole Commission

    (b) Employees serving in positions within the Department but outside 
of the components designated in paragraph (a) of this section must 
continue to treat the entire Department of Justice as their employing 
agency for purposes of the gift rules of subpart B of part 2635 of this 
title and the application of the teaching, speaking and writing 
provisions found in Sec.  2635.807 of this title.

[62 FR 23942, May 2, 1997, as amended at 79 FR 44263, July 31, 2014]



Sec.  3801.104  Purchase or use of certain forfeited and other property.

    (a) In the absence of prior approval by the agency designee, no 
employee shall purchase, directly or indirectly, from the Department of 
Justice or its agents property forfeited to the United States and no 
employee shall use property forfeited to the United States which has 
been purchased, directly or indirectly, from the Department of Justice 
or its agents by his spouse or minor child. Approval may be granted only 
on the basis of a written determination by the agency designee that in 
the mind of a reasonable person with knowledge of the circumstances, 
purchase or use by the employee of the asset will not raise a question 
as to whether the employee has used his official position or nonpublic 
information to obtain or assist in an advantageous purchase or create an 
appearance of loss of impartiality in the performance of the employee's 
duties. A copy of the written determination shall be filed with the 
Deputy Attorney General.
    (b) No employee of the United States Marshals Service, Federal 
Bureau of Investigation, or Drug Enforcement Administration shall 
purchase, directly or indirectly, from his component, the General 
Services Administration, or the agent of either, property formerly used 
by that component and no such employee shall use property formerly used 
by his component which has been purchased, directly or indirectly, by 
his spouse or minor child from his component, the General Services 
Administration, or to the agent of either.



Sec.  3801.105  Personal use of Government property.

    Employees are prohibited by part 2635 of this title from using 
Government property for other than authorized purposes. The Department 
rule authorizing limited personal use of Department of Justice office 
and library equipment and facilities by its employees is at 28 CFR 45.4.



Sec.  3801.106  Outside employment.

    (a) Definition. For purposes of this section, outside employment 
means any form of employment, business relationship or activity, 
involving the provision of personal services whether or not for 
compensation, other than in the discharge of official duties. It 
includes, but is not limited to, services as a lawyer, officer, 
director, trustee, employee, agent, consultant, contractor, or general 
partner. Speaking, writing and serving as a fact witness are excluded 
from this definition, so long as they are not combined with the 
provision of other services that do fall within this definition, such as 
the practice of law. Employees who wish to engage in compensated 
speaking and writing should review Sec.  2635.807 of this title.
    (b) Prohibitied outside employment. (1) No employee may engage in 
outside employment that involves:
    (i) The practice of law, unless it is uncompensated and in the 
nature of community service, or unless it is on behalf of himself, his 
parents, spouse, or children;
    (ii) Any criminal or habeas corpus matter, be it Federal, State, or 
local; or
    (iii) Litigation, investigations, grants or other matters in which 
the Department of Justice is or represents a party, witness, litigant, 
investigator or grant-maker.
    (2) Where application of the restrictions of paragraph (b)(1) of 
this section will cause undue personal or family hardship; unduly 
prohibit an employee from completing a professional obligation entered 
into prior to Government service; or unduly restrict the Department from 
securing necessary and uniquely specialized services, the restrictions 
may be waived in writing based upon a determination that the

[[Page 803]]

activities covered by the waiver are not expected to involve conduct 
prohibited by statute or Federal regulation. Employees should refer to 
DOJ Order 1735.1 on obtaining waivers. The Order is available from the 
agency designee which, for purposes of this rule, shall be the Deputy 
Designated Agency Ethics Official for the component.
    (c) Prior approval for outside employment. (1) An employee must 
obtain written approval before engaging in outside employment, not 
otherwise prohibited by paragraph (b) of this section that involves:
    (i) The practice of law; or
    (ii) A subject matter, policy,or program that is in his component's 
area of responsibility.
    (2) Employees should refer to DOJ Order 1735.1 for procedures on 
obtaining prior approval. A waiver granted pursuant to paragraph (b)(2) 
of this section will be sufficient to satisfy this prior approval 
requirement.
    (3) Approval shall be granted only upon a determination that the 
outside employment is not expected to involve conduct that is prohibited 
by statute or Federal regulation.

[62 FR 23942, May 2, 1997; 62 FR 31865, June 11, 1997]



Sec.  3801.107  Additional rules for Bureau of Alcohol, Tobacco, Firearms, 
and Explosives employees.

    The following rules apply to the employees of the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives and are in addition to Sec. Sec.  
3801.101 through 3801.106:
    (a) Prohibited financial interests. Except as provided in this 
section, no employee of ATF, or spouse or minor child of an ATF 
employee, shall have, directly or indirectly, any financial interest, 
including compensated employment, in the alcohol, tobacco, firearms or 
explosives industries. The term financial interest is defined in Sec.  
2635.403(c) of this title.
    (b) Waiver. An agency designee, with the advice and legal clearance 
of the Deputy Designated Agency Ethics Official, may grant a written 
waiver of the prohibition in paragraph (a) of this section on a 
determination that the waiver is not inconsistent with part 2635 of this 
title or otherwise prohibited by law and that, in the mind of a 
reasonable person with knowledge of the particular circumstances, the 
financial interest will not create an appearance of misuse of position 
or loss of impartiality, or call into question the impartiality and 
objectivity with which ATF's programs are administered. A waiver under 
this paragraph (b) may require appropriate conditions, such as execution 
of a written disqualification.

[79 FR 44263, July 31, 2014]

                       PARTS 3802	3899 [RESERVED]

[[Page 805]]



             CHAPTER XXIX--FEDERAL COMMUNICATIONS COMMISSION




  --------------------------------------------------------------------
Part                                                                Page
3900

[Reserved]

3901            Supplemental standards of ethical conduct 
                    for employees of the Federal 
                    Communications Commission...............         807
3902            Supplemental financial disclosure 
                    requirements for employees of the 
                    Federal Communications Commission.......         807
3903-3999

 [Reserved]

[[Page 807]]

                          PART 3900 [RESERVED]



PART 3901_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL COMMUNICATIONS COMMISSION--Table of Contents



Sec.
3901.101 General.
3901.102 Prior approval for practice of a profession.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 47 U.S.C. 303(r); 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; 
5 CFR 2635.105, 2635.803.

    Source: 61 FR 56111, Oct. 31, 1996, unless otherwise noted.



Sec.  3901.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Federal Communications Commission (FCC) and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635 and this part, employees are subject to the 
Executive Branch Financial Disclosure Regulations contained in 5 CFR 
part 2634, the FCC's regulations at 5 CFR part 3902 supplementing 5 CFR 
part 2634, and to FCC regulations regarding their responsibilities and 
conduct in 47 CFR part 19.



Sec.  3901.102  Prior approval for practice of a profession.

    (a) Prior approval requirement. A professional employee of the FCC 
shall obtain approval before engaging in the outside practice of the 
same profession as that of the employee's official position, whether or 
not for compensation. As used in this section, ``profession'' has the 
meaning set forth in Sec.  2636.305(b)(1) of this title, and 
``professional employee'' means an employee whose official FCC position 
is in a profession as defined in Sec.  2636.305(b)(1) of this title.
    (b) Procedures for requesting approval. (1) A request for approval 
shall be in writing and shall be submitted, through the following 
Commission officials, to the Designated Agency Ethics Official or his 
designee:
    (i) For Heads of Bureaus and Offices, through the Chairman;
    (ii) For employees in the immediate Office of a Commissioner, 
through the Commissioner; or
    (iii) For all other employees, through the Head of the Bureau or 
Office to which the employee is assigned.
    (2) A request for approval shall include, at a minimum:
    (i) A full description of the services to be performed in practicing 
the profession;
    (ii) The name and address of the person or organization for which 
services are to be provided; and
    (iii) The estimated total time that will be devoted to practicing 
the profession.
    (3) Upon a significant change in the nature or scope of the 
employee's FCC position or the services to be provided in practicing the 
profession, the employee shall submit a revised request for approval.
    (c) Standard for approval. Approval shall be granted only upon a 
determination that the proposed outside practice of the employee's 
profession is not expected to involve conduct prohibited by statute or 
Federal regulation, including 5 CFR 2635.



PART 3902_SUPPLEMENTAL FINANCIAL DISCLOSURE REQUIREMENTS FOR EMPLOYEES 
OF THE FEDERAL COMMUNICATIONS COMMISSION--Table of Contents



Sec.
3902.101 General.
3902.102 Employees required to submit FCC Form A54A, ``Confidential 
          Supplemental Statement of Employment and Financial 
          Interests.''
3902.103 Submission and review of employees' statements.
3902.104 Confidentiality of employees' statements.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 47 U.S.C. 154(b), (j), (i) and 303(r); 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; 5 CFR 2634.103, 2634.601(b), 2634.901(b).

    Source: 61 FR 56111, Oct. 31, 1996, unless otherwise noted.

[[Page 808]]



Sec.  3902.101  General.

    The regulations in this part apply to employees of the Federal 
Communications Commission (FCC) and supplement the Executive Branch 
Financial Disclosure Regulations contained in 5 CFR part 2634.



Sec.  3902.102  Employees required to submit FCC Form A54A, 
``Confidential Supplemental Statement of Employment and Financial Interests.''

    All employees, including special Government employees, who are 
required to file a Standard Form (SF) 278, ``Public Financial Disclosure 
Report,'' or a SF/OGE Form 450, ``Confidential Financial Disclosure 
Report,'' are also required to file FCC Form A54A, ``Confidential 
Supplemental Statement of Employment and Financial Interests.'' The 
purpose of FCC Form A54A is to require disclosure of income and interest 
in property and assets valued below the minimum reporting limits for the 
SF 278 and SF/OGE Form 450 in order to meet the separate requirements of 
section 4(b) of the Communications Act of 1934, at 47 U.S.C. 154(b).



Sec.  3902.103  Submission and review of employees' statements.

    (a) An employee required to submit a statement of employment and 
financial interests will be notified individually of his or her 
obligation to file.
    (b) An employee required to submit an FCC Form A54A, ``Confidential 
Supplemental Statement of Employment and Financial Interests'' pursuant 
to Sec.  3902.102 shall submit such statement to the Designated Agency 
Ethics Official, on the prescribed form, not later than 30 days after 
his or her entrance on duty, and annually thereafter at the time the 
employee submits his or her SF 278 or SF/OGE Form 450.
    (c) Financial statements submitted under this subpart shall be 
reviewed by the Designated Agency Ethics Official.
    (d) When a statement submitted under this subpart or information 
from other sources indicates a potential violation of applicable laws 
and regulations, such as a conflict between the interests of an employee 
or special Government employee and the performance of his or her 
services for the Government, the employee concerned shall be provided an 
opportunity to explain and resolve the potential violation.
    (e) When, after explanation by the employee involved, the potential 
violation of law or regulation is not resolved, the information 
concerning the potential violation shall be reported to the Chairman by 
the Designated Agency Ethics Official for appropriate action.



Sec.  3902.104  Confidentiality of employees' statements.

    Each supplemental statement of employment and financial interests 
shall be held in confidence and shall be retained in the Office of the 
Designated Agency Ethics Official. Each employee charged with reviewing 
a statement is responsible for maintaining the statements in confidence 
and shall not allow access to or allow information to be disclosed from 
a statement except to carry out the purpose of this part or as otherwise 
required by law. Information from these statements shall not be 
disclosed except as the Chairman may determine in accordance with law or 
regulation.

                       PARTS 3903	3999 [RESERVED]

[[Page 809]]



          CHAPTER XXX--FARM CREDIT SYSTEM INSURANCE CORPORATION




  --------------------------------------------------------------------
Part                                                                Page
4000

[Reserved]

4001            Supplemental standards of ethical conduct 
                    for employees of the Farm Credit System 
                    Insurance Corporation...................         811
4002-4099

 [Reserved]

[[Page 811]]

                          PART 4000 [RESERVED]



PART 4001_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FARM CREDIT SYSTEM INSURANCE CORPORATION--Table of Contents



Sec.
4001.101 General.
4001.102 Definitions.
4001.103 Prohibited financial interests.
4001.104 Prohibited borrowing.
4001.105 Purchase of System institution assets.
4001.106 Restrictions arising from the employment of relatives.
4001.107 Involvement in System institution board member elections.
4001.108 Outside employment and business activity.
4001.109 Waivers.

    Authority: 5 U.S.C. 7301, 7353; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 12 U.S.C. 2277a-7, 2277a-8; E.O. 12674, 3 CFR, 1989 Comp., 
p. 215, as modified by E.O. 12731, 3 CFR, 1990 Comp., p. 306; 5 CFR 
2635.105, 2635.403(a), 2635.502, 2635.702, 2635.802(a), 2635.803.

    Source: 60 FR 30776, June 12, 1995, unless otherwise noted.



Sec.  4001.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to Farm Credit System Insurance Corporation (Corporation) 
employees and supplement the Standards of Ethical Conduct for Employees 
of the executive branch contained in 5 CFR part 2635. Employees are 
required to comply with 5 CFR part 2635, this part, and Corporation 
guidance and procedures established pursuant to 5 CFR 2635.105.



Sec.  4001.102  Definitions.

    For purposes of this part:
    (a) Covered employee means:
    (1) All examiners who perform work for the Corporation; and
    (2) Any other employee specified by Corporation directive whose 
duties and responsibilities require application of these supplemental 
regulations to ensure public confidence that the Corporation's programs 
are conducted impartially and objectively. The Corporation Designated 
Agency Ethics Official (DAEO) or his or her designee, in consultation 
with the Chief Operating Officer, will determine which employees are 
covered for the purpose of this part.
    (b) Related entity means:
    (1) Affiliates defined in section 8.5(e) of the Farm Credit Act of 
1971, as amended (Act), 12 U.S.C. 2001 et seq., 12 U.S.C. 2279aa-5;
    (2) Affiliates defined in section 8.11(e) of the Act, 12 U.S.C. 
2279aa-11;
    (3) Service organizations authorized by section 4.25 of the Act, 12 
U.S.C. 2211; and
    (4) Any other entity owned or controlled by one or more Farm Credit 
System (System) institution that is not chartered by the Farm Credit 
Administration (FCA).
    (c) System institution refers to:
    (1) All institutions chartered and regulated by the FCA as described 
in section 1.2 of the Act, 12 U.S.C. 2002;
    (2) The Federal Farm Credit Banks Funding Corporation, established 
pursuant to section 4.9 of the Act, 12 U.S.C. 2160; and
    (3) The Federal Agricultural Mortgage Corporation, established 
pursuant to section 8.1 of the Act, 12 U.S.C. 2279aa-1.



Sec.  4001.103  Prohibited financial interests.

    (a) Prohibition. Except as provided in paragraph (c) of this section 
and Sec.  4001.109, no covered employee, or spouse or minor child of a 
covered employee, shall own, directly or indirectly, securities issued 
by a System institution or related entity.
    (b) Definition of securities. For purposes of this section, the term 
``securities'' includes all interests in debt or equity instruments. The 
term includes, without limitation, secured and unsecured bonds, 
debentures, notes, securitized assets and commercial paper, as well as 
all types of preferred and common stock. The term encompasses both 
current and contingent ownership interests, including any beneficial or 
legal interest derived from a trust. It extends to any right to acquire 
or dispose of any long and short position in such securities and 
includes, without limitation, interests convertible into such 
securities, as well as options, rights, warrants, puts, calls, and 
straddles relating to such securities.

[[Page 812]]

    (c) Exceptions. Nothing in this section prohibits a covered 
employee, or spouse or minor child of a covered employee, from:
    (1) Investing in a publicly traded or publicly available investment 
fund which, in its prospectus, does not indicate the objective or 
practice of concentrating its investments in the securities of System 
institutions or related entities, if the employee neither exercises 
control over nor has the ability to exercise control over the financial 
interests held in the fund;
    (2) Having a legal or beneficial interest in a qualified profit 
sharing, retirement, or similar plan, provided that the plan does not 
invest more than 25 percent of its funds in securities of System 
institutions or related entities, and the employee neither exercises 
control over nor has the ability to exercise control over the financial 
interests held in the plan;
    (3) Owning securities of System institutions held as a result of 
pre-existing credit, as specified in Sec.  4001.104(b); or
    (4) Owning any security pursuant to a waiver granted under Sec.  
4001.109.



Sec.  4001.104  Prohibited borrowing.

    (a) Prohibition on employee borrowing. Except as provided in 
paragraph (b) of this section, no covered employee, or spouse or minor 
child of a covered employee, shall seek or obtain any loan or extension 
of credit from a System institution or from an officer, director, 
employee, or related entity of a System institution.
    (b) Exception. This section does not prohibit a covered employee, or 
spouse or minor child of a covered employee, from retaining a loan from 
a System institution on its original terms if the loan was obtained 
prior to appointment to a covered employee position. For loans retained 
pursuant to this paragraph, a covered employee shall submit to his or 
her immediate supervisor, the ethics liaison in his or her office, and 
the DAEO, a written disqualification from examining, auditing, visiting, 
reviewing, investigating, or otherwise participating in the regulation 
or supervision of the System institution that is providing the retained 
credit. Written disqualification shall be made within 30 days of 
appointment to a covered employee position on a form prescribed by the 
DAEO. Any renewal or renegotiation of a pre-existing loan or extension 
of credit will be treated as a new loan subject to the prohibition in 
paragraph (a) of this section.



Sec.  4001.105  Purchase of System institution assets.

    (a) Prohibition on purchasing assets owned by a System institution. 
No employee, or spouse or minor child of an employee, shall purchase, 
directly or indirectly, an asset (such as real property, vehicles, 
furniture, or similar items) from a System institution or related 
entity, regardless of how the asset is sold.
    (b) Assets held or managed by the Corporation or a receiver or 
conservator--(1) Prohibition on purchase. No employee, or spouse or 
minor child of an employee, shall purchase, directly or indirectly, an 
asset (such as real property, vehicles, furniture, or similar items) 
that is held or managed by a receiver or conservator for a System 
institution or that is held by the Corporation as a result of its 
provision of open bank assistance to troubled System banks, regardless 
of how the asset is sold.
    (2) Disqualification. An employee who is involved in the disposition 
of receivership or conservatorship assets, or assets acquired by the 
Corporation as a result of its provision of open bank assistance to 
troubled System banks, shall disqualify himself or herself from 
participation in the disposition of such assets when the employee 
becomes aware that anyone with whom the employee has a covered 
relationship, as defined in Sec.  2635.502(b)(1) of the Executive 
Branch-wide Standards, is or will be attempting to acquire such assets. 
The employee shall provide written notification of the disqualification 
to his or her immediate supervisor, the ethics liaison in his or her 
office, and the DAEO.



Sec.  4001.106  Restrictions arising from the employment of relatives.

    When the spouse of a covered employee, or other relative who is 
dependent on or resides with a covered employee, is employed in a 
position that the employee would be prohibited from occupying by Sec.  
4001.108(a), the employee

[[Page 813]]

shall file a report of family member employment with his or her 
immediate supervisor, the ethics liaison in his or her office, and the 
DAEO on a form prescribed by the DAEO. Notice shall be made as soon as 
possible after learning about employment already in existence or in 
advance of known prospective employment. The employee shall be 
disqualified from participation in any matter involving the employee's 
spouse or relative, or the employing entity, unless the DAEO authorizes 
the employee to participate in the matter using the standard in Sec.  
2635.502(d) of the Executive Branch-wide Standards.



Sec.  4001.107  Involvement in System institution board member elections.

    No covered employee who is able to participate in a System 
institution board election because of System securities owned by virtue 
of retaining a pre-existing loan or extension of credit from a System 
institution in accordance with Sec.  4001.104(b) shall take any part, 
directly or indirectly, in the nomination or election of a board member 
of a System institution, other than by exercising the right to vote. In 
addition, a covered employee shall not make any oral or written 
statement that may be reasonably construed as intending to influence any 
vote in such nominations or elections.



Sec.  4001.108  Outside employment and business activity.

    (a) Prohibition. No covered employee shall perform services, either 
on a paid or unpaid basis, for any System institution or related entity, 
or any officer, director, employee, or person connected with a System 
institution or related entity. Nothing in this section would prohibit 
covered employees from providing any service that is a part of their 
official duties.
    (b) General requirement for prior approval. All employees shall 
obtain prior written approval before engaging in any outside employment 
or business activity, with or without compensation, unless the outside 
activity is exempt from the definition of ``employment'' as set forth in 
paragraph (c) of this section. An employee proposing to engage in 
outside employment and business activities is required, prior to 
commencement, to send a written notice of the proposed employment or 
activity to the DAEO on a form prescribed by the DAEO. Approval shall be 
granted only upon a determination that the employment or activity is not 
expected to involve conduct prohibited by statute, part 2635 of this 
title, or paragraph (a) of this section.
    (c) Definition. For purposes of this section, ``employment'' means 
any form of non-Federal employment, business relationship or activity 
involving the provision of personal services by the employee, whether or 
not for compensation. It includes, but is not limited to, personal 
services as an officer, director, employee, agent, attorney, consultant, 
contractor, general partner, trustee, teacher, or speaker. It includes 
writing when done under an arrangement with another person for 
production or publication of the written product. It does not, however, 
include participation in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service, or civic organization for which no compensation is 
received other than reimbursement for necessary expenses.



Sec.  4001.109  Waivers.

    The DAEO may grant a written waiver from any provision of this part 
based on a determination that the waiver is not inconsistent with part 
2635 of this title or otherwise prohibited by law and that, under the 
particular circumstances, application of the provision is not necessary 
to avoid the appearance of misuse of position or loss of impartiality, 
or otherwise to ensure confidence in the impartiality and objectivity 
with which Corporation programs are administered. A waiver under this 
paragraph may impose appropriate conditions, such as requiring execution 
of a written disqualification.

                       PARTS 4002	4099 [RESERVED]

[[Page 815]]



                CHAPTER XXXI--FARM CREDIT ADMINISTRATION




  --------------------------------------------------------------------
Part                                                                Page
4100

[Reserved]

4101            Supplemental standards of ethical conduct 
                    for employees of the Farm Credit 
                    Administration..........................         817
4102-4199

 [Reserved]

[[Page 817]]

                          PART 4100 [RESERVED]



PART 4101_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FARM CREDIT ADMINISTRATION--Table of Contents



Sec.
4101.101 General.
4101.102 Definitions.
4101.103 Prohibited financial interests.
4101.104 Prohibited borrowing.
4101.105 Purchase of System institution assets.
4101.106 Restrictions arising from the employment of relatives.
4101.107 Involvement in System institution board member elections.
4101.108 Outside employment and business activity.
4101.109 Waivers.

    Authority: 5 U.S.C. 7301, 7353; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 12 U.S.C. 2245(c)(2)(C), 2252; E.O. 12674, 3 CFR, 1989 
Comp., p. 215, as modified by E.O. 12731, 3 CFR, 1990 Comp., p. 306; 5 
CFR 2635.105, 2635.403(a), 2635.502, 2635.702, 2635.802(a), 2635.803.

    Source: 60 FR 30781, June 12, 1995, unless otherwise noted.



Sec.  4101.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to Farm Credit Administration (FCA) employees and supplement the 
Standards of Ethical Conduct for Employees of the executive branch 
contained in 5 CFR part 2635. Employees are required to comply with 5 
CFR part 2635, this part, and Agency guidance and procedures established 
pursuant to 5 CFR 2635.105.



Sec.  4101.102  Definitions.

    For purposes of this part:
    (a) Covered employee means:
    (1) Examiners; and
    (2) Any other employee specified by FCA directive whose duties and 
responsibilities require application of these supplemental regulations 
to ensure public confidence that the FCA's programs are conducted 
impartially and objectively. The FCA Designated Agency Ethics Official 
(DAEO) or his or her designee, in consultation with the Office 
Directors, will determine which employees are covered for the purpose of 
this part.
    (b) Related entity means:
    (1) Affiliates defined in section 8.5(e) of the Farm Credit Act of 
1971, as amended (Act), 12 U.S.C. 2001 et seq., 12 U.S.C. 2279aa-5;
    (2) Affiliates defined in section 8.11(e) of the Act, 12 U.S.C. 
2279aa-11;
    (3) Service organizations authorized by section 4.25 of the Act, 12 
U.S.C. 2211; and
    (4) Any other entity owned or controlled by one or more Farm Credit 
System (System) institution that is not chartered by the FCA.
    (c) System institution refers to:
    (1) All institutions chartered and regulated by the FCA as described 
in section 1.2 of the Act, 12 U.S.C. 2002;
    (2) The Federal Farm Credit Banks Funding Corporation, established 
pursuant to section 4.9 of the Act, 12 U.S.C. 2160; and
    (3) The Federal Agricultural Mortgage Corporation, established 
pursuant to section 8.1 of the Act, 12 U.S.C. 2279aa-1.



Sec.  4101.103  Prohibited financial interests.

    (a) Prohibition. Except as provided in paragraph (c) of this section 
and Sec.  4101.109, no covered employee, or spouse or minor child of a 
covered employee, shall own, directly or indirectly, securities issued 
by a System institution or related entity.
    (b) Definition of securities. For purposes of this section, the term 
``securities'' includes all interests in debt or equity instruments. The 
term includes, without limitation, secured and unsecured bonds, 
debentures, notes, securitized assets and commercial paper, as well as 
all types of preferred and common stock. The term encompasses both 
current and contingent ownership interests, including any beneficial or 
legal interest derived from a trust. It extends to any right to acquire 
or dispose of any long and short position in such securities and 
includes, without limitation, interests convertible into such 
securities, as well as options, rights, warrants, puts, calls, and 
straddles relating to such securities.
    (c) Exceptions. Nothing in this section prohibits a covered 
employee, or spouse

[[Page 818]]

or minor child of a covered employee, from:
    (1) Investing in a publicly traded or publicly available investment 
fund which, in its prospectus, does not indicate the objective or 
practice of concentrating its investments in the securities of System 
institutions or related entities, and the employee neither exercises 
control over nor has the ability to exercise control over the financial 
interests held in the fund;
    (2) Having a legal or beneficial interest in a qualified profit 
sharing, retirement, or similar plan, provided that the plan does not 
invest more than 25 percent of its funds in securities of System 
institutions or related entities, and the employee neither exercises 
control over nor has the ability to exercise control over the financial 
interests held in the plan;
    (3) Owning securities of System institutions held as a result of 
pre-existing credit, as specified in Sec.  4101.104(b); or
    (4) Owning any security pursuant to a waiver granted under Sec.  
4101.109.



Sec.  4101.104  Prohibited borrowing.

    (a) Prohibition on employee borrowing. Except as provided in 
paragraph (b) of this section, no covered employee, or spouse or minor 
child of a covered employee, shall seek or obtain any loan or extension 
of credit from a System institution or from an officer, director, 
employee, or related entity of a System institution.
    (b) Exception. This section does not prohibit a covered employee, or 
spouse or minor child of a covered employee, from retaining a loan from 
a System institution on its original terms if the loan was obtained 
prior to appointment to a covered employee position. For loans retained 
pursuant to this paragraph, a covered employee shall submit to his or 
her immediate supervisor, the ethics liaison in his or her office, and 
the DAEO, a written disqualification from examining, auditing, visiting, 
reviewing, investigating, or otherwise participating in the supervision 
of the System institution that is providing the retained credit. Written 
disqualification shall be made within 30 days of appointment to a 
covered employee position on a form prescribed by the DAEO. Any renewal 
or renegotiation of a pre-existing loan or extension of credit will be 
treated as a new loan subject to the prohibition in paragraph (a) of 
this section.



Sec.  4101.105  Purchase of System institution assets.

    (a) Prohibition on purchasing assets owned by a System institution. 
No covered employee, or spouse or minor child of a covered employee, 
shall purchase, directly or indirectly, an asset (such as real property, 
vehicles, furniture, or similar items) from a System institution or 
related entity, unless it is sold at a public auction or by other means 
which assure that the selling price is the asset's fair market value. A 
covered employee shall obtain concurrence from the DAEO about whether a 
proposed purchase of a System institution asset is proper.
    (b) Assets held or managed by the Farm Credit System Insurance 
Corporation or a receiver or conservator--(1) Prohibition on purchase. 
No covered employee, or spouse or minor child of a covered employee, 
shall purchase, directly or indirectly, an asset (such as real property, 
vehicles, furniture, or similar items) that is held or managed by a 
receiver or conservator for a System institution or that is held by the 
Farm Credit System Insurance Corporation (Corporation) as a result of 
its provision of open bank assistance to troubled System banks 
regardless of how the asset is sold.
    (2) Disqualification. A covered employee who is involved in the 
disposition of receivership or conservatorship assets, or assets 
acquired by the Corporation as a result of its provision of open bank 
assistance to troubled System banks, shall disqualify himself or herself 
from participation in the disposition of such assets when the employee 
becomes aware that anyone with whom the employee has a covered 
relationship, as defined in Sec.  2635.502(b)(1) of the Executive 
Branch-wide Standards, is or will be attempting to acquire such assets. 
The employee shall provide written notification of the disqualification 
to his or her immediate supervisor, the ethics liaison in his or her 
office, and the DAEO.

[[Page 819]]



Sec.  4101.106  Restrictions arising from the employment of relatives.

    When the spouse of a covered employee, or other relative who is 
dependent on or resides with a covered employee, is employed in a 
position that the employee would be prohibited from occupying by Sec.  
4101.108(a), the employee shall file a report of family member 
employment with his or her immediate supervisor, the ethics liaison in 
his or her office, and the DAEO on a form prescribed by the DAEO. Notice 
shall be made as soon as possible after learning about employment 
already in existence or in advance of known prospective employment. The 
employee shall be disqualified from participation in any matter 
involving the employee's spouse or relative, or the employing entity, 
unless the DAEO authorizes the employee to participate in the matter 
using the standard in Sec.  2635.502(d) of the Executive Branch-wide 
Standards.



Sec.  4101.107  Involvement in System institution board member elections.

    No covered employee who is able to participate in a System 
institution board election because of System securities owned by virtue 
of retaining a pre-existing loan or extension of credit from a System 
institution in accordance with Sec.  4101.104(b) shall take any part, 
directly or indirectly, in the nomination or election of a board member 
of a System institution, other than by exercising the right to vote. In 
addition, a covered employee shall not make any oral or written 
statement that may be reasonably construed as intending to influence any 
vote in such nominations or elections.



Sec.  4101.108  Outside employment and business activity.

    (a) Prohibition. No covered employee shall perform services, either 
on a paid or unpaid basis, for any System institution or related entity, 
or any officer, director, employee, or person connected with a System 
institution or related entity. Nothing in this section would prohibit 
covered employees from providing any service that is a part of their 
official duties.
    (b) General requirement for prior approval. All employees shall 
obtain prior written approval before engaging in any outside employment 
or business activity, with or without compensation, unless the outside 
activity is exempt from the definition of ``employment'' as set forth in 
paragraph (c) of this section. An employee proposing to engage in 
outside employment and business activities is required, prior to 
commencement, to send a written notice of the proposed employment or 
activity to the DAEO on a form prescribed by the DAEO. Approval shall be 
granted only upon a determination that the employment or activity is not 
expected to involve conduct prohibited by statute, part 2635 of this 
title, or paragraph (a) of this section.
    (c) Definition. For purposes of this section, ``employment'' means 
any form of non-Federal employment, business relationship or activity 
involving the provision of personal services by the employee, whether or 
not for compensation. It includes, but is not limited to, personal 
services as an officer, director, employee, agent, attorney, consultant, 
contractor, general partner, trustee, teacher, or speaker. It includes 
writing when done under an arrangement with another person for 
production or publication of the written product. It does not, however, 
include participation in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service, or civic organization for which no compensation is 
received other than reimbursement for necessary expenses.



Sec.  4101.109  Waivers.

    The DAEO may grant a written waiver from any provision of this part 
based on a determination that the waiver is not inconsistent with part 
2635 of this title or otherwise prohibited by law and that, under the 
particular circumstances, application of the provision is not necessary 
to avoid the appearance of misuse of position or loss of impartiality, 
or otherwise to ensure confidence in the impartiality and objectivity 
with which Agency programs are administered. A waiver under this 
paragraph may impose appropriate conditions, such as requiring execution 
of a written disqualification.

                       PARTS 4102	4199 [RESERVED]

[[Page 821]]



    CHAPTER XXXIII--US INTERNATIONAL DEVELOPMENT FINANCE CORPORATION




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[Reserved]

4301            Supplemental standards of ethical conduct 
                    for employees of the US International 
                    Development Finance Corporation.........         823
4302-4399

 [Reserved]

[[Page 823]]

                          PART 4300 [RESERVED]



PART 4301_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE US INTERNATIONAL DEVELOPMENT FINANCE CORPORATION--Table of Contents



    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.



Sec.  4301.101  Prior approval for outside employment.

    Any employee of the US International Development Finance Corporation 
(DFC) who is interested in engaging in outside employment must first 
obtain approval from the Designated Agency Ethics Official before 
engaging in such employment activity. For this purpose, employment has 
the meaning set forth in Sec.  2635.603(a) of this title.

[58 FR 33320, June 17, 1993, as amended at 84 FR 37751, Aug. 2, 2019]

                       PARTS 4302	4399 [RESERVED]

[[Page 825]]



            CHAPTER XXXIV--SECURITIES AND EXCHANGE COMMISSION




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[Reserved]

4401            Supplemental standards of ethical conduct 
                    for members and employees of the 
                    Securities and Exchange Commission......         827
4402-4499

 [Reserved]

[[Page 827]]

                          PART 4400 [RESERVED]



PART 4401_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR MEMBERS AND EMPLOYEES 
OF THE SECURITIES AND EXCHANGE COMMISSION--Table of Contents



Sec.
4401.101 General.
4401.102 Prohibited and restricted financial interests and transactions.
4401.103 Outside employment and activities.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.403, 2635.803; 15 U.S.C. 77s, 78w, 77sss, 80a-37, 80b-11.

    Source: 75 FR 42273, July 20, 2010, unless otherwise noted.



Sec.  4401.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to members and employees of the Securities and Exchange Commission 
(``Commission'') and supplement the Standards of ethical conduct for 
employees of the executive branch contained in 5 CFR part 2635. Members 
and employees of the Commission are required to comply with 5 CFR part 
2635 and this part. In addition, they are subject to the Executive 
branch financial disclosure regulations, 5 CFR part 2634; the Office of 
Personnel Management Employee responsibilities and conduct regulations 
at 5 CFR part 735; and the Commission's Canons of ethics and Regulation 
concerning conduct of members and employees and former members and 
employees, 17 CFR part 200, subparts C and M.



Sec.  4401.102  Prohibited and restricted financial interests and transactions.

    (a) Applicability. The requirements of this section apply to all 
securities holdings or transactions effected, directly or indirectly, by 
or on behalf of a member or employee, the member's or employee's spouse, 
the member's or employee's unemancipated minor child, or any person for 
whom the member or employee serves as legal guardian. A member or 
employee is deemed to have sufficient interest in the securities 
holdings and transactions of his or her spouse, unemancipated minor 
child, or person for whom the member or employee serves as legal 
guardian that such holdings or transactions are subject to all the terms 
of this part.
    (b) In general. (1) Members and employees are prohibited from 
purchasing or selling any security while in possession of material 
nonpublic information regarding that security. Nonpublic information has 
the meaning as provided in 5 CFR 2635.703(b).
    (2) Members and employees are prohibited from recommending or 
suggesting to any person the purchase or sale of security:
    (i) Based on material nonpublic information regarding that security; 
or
    (ii) That the member or employee could not purchase or sell because 
of the restrictions contained in this Rule.
    (c) Prohibited and restricted holdings and transactions. Members and 
employees are prohibited from:
    (1) Knowingly purchasing or holding a security or other financial 
interest in an entity directly regulated by the Commission;
    (2) Purchasing a security in an initial public offering (``IPO'') 
for seven calendar days after the IPO effective date, except that this 
prohibition does not apply to an IPO of shares in a registered 
investment company or other publicly traded or publicly available 
collective investment fund;
    (3) Purchasing or otherwise carrying securities on margin;
    (4) Selling securities short as defined in 17 CFR 242.200(a);
    (5) Accepting a loan from, or entering into any other financial 
relationship with, an entity, institution or other person directly 
regulated by the Commission if the loan or financial relationship is 
governed by terms more favorable than would be available in like 
circumstances to members of the public, except as otherwise permitted by 
5 CFR part 2635, subpart B (Gifts from outside sources);
    (6) Engaging in transactions involving financial instruments that 
are derivatives of securities (that is, the value of the security 
depends on or is derived from, in whole or in part, the value of another 
security, or a group,

[[Page 828]]

or an index of securities), except that this prohibition does not apply 
to transactions in shares in a registered investment company or other 
publicly traded or publicly available collective investment fund; and
    (7) Purchasing or selling any security issued by an entity that is:
    (i) Under investigation by the Commission;
    (ii) A party to a proceeding before the Commission; or
    (iii) A party to a proceeding to which the Commission is a party.
    (d) Prior clearance of transactions in securities or related 
financial interests. (1) Except as set forth in paragraph (g) of this 
section, members and employees must confirm before entering into any 
security or other related financial transaction that the security or 
related financial transaction is not prohibited or restricted as to them 
by clearing the transaction in the manner required by the Designated 
Agency Ethics Official (``DAEO''). A member or employee will have five 
business days after clearance to effect a transaction.
    (2) Documentation of the clearance of any transaction pursuant to 
this paragraph (d) shall be prima facie evidence that the member or 
employee has not knowingly purchased, sold, or held such financial 
interest in violation of the provisions of paragraphs (c)(1), (2), (6), 
or (7) of this section.
    (3) The DAEO shall be responsible for administering the Commission's 
clearance systems. The DAEO shall maintain a record of securities that 
members and employees may not purchase or sell, or otherwise hold, 
because such securities are the subject of the various prohibitions and 
restrictions contained in this section.
    (e) Holding periods for securities and related financial interests--
(1) General rule. Except as set forth in paragraph (g) and in paragraphs 
(e)(2) and (3) of this section, members and employees must hold a 
security purchased after commencement of employment with the Commission 
for a minimum of six (6) months from the trade date.
    (2) General exceptions. This holding period does not apply to:
    (i) Securities sold for ninety percent (90) or less of the original 
purchase price;
    (ii) Securities with an initial term of less than six (6) months 
that are held to term; and
    (iii) Shares in money market funds, as defined in Rule 12d1-1(d)(2), 
17 CFR 270.12d1-1(d)(2).
    (3) Exception for shares in registered investment companies. Members 
and employees must hold shares in registered investment companies for a 
minimum of thirty (30) days from the purchase date.
    (f) Reporting requirements. (1) Except as set forth in paragraph (g) 
of this section, members and employees must:
    (i) Report and certify all securities holdings according to the 
schedule required by the DAEO; and
    (ii) Submit duplicate statements for every account containing 
reportable securities to the DAEO according to such procedures required 
by the DAEO.
    (2) Members and employees must report all purchases, sales, 
acquisitions, or dispositions of securities within five (5) business 
days after receipt of confirmation of the transaction.
    (3) Any person who receives a conditional offer of employment from 
the Commission must report all securities holdings after acceptance of 
that offer and before commencement of employment with the Commission on 
the form prescribed by the Commission.
    (g) Exceptions. (1) The following transactions are exempt from the 
requirements of paragraphs (c), (d), (e), and (f) of this section:
    (i) Securities transactions effected by a member's or employee's 
spouse on behalf of an entity or person other than the member or 
employee, the member's or employee's spouse, the member's or employee's 
unemancipated minor child, or any person for whom the member or employee 
serves as legal guardian;
    (ii) Securities holdings and transactions of a member's or 
employee's legally separated spouse living apart from the member or 
employee (including those effected for the benefit of the member's or 
employee's minor child), provided that the member or employee has no 
control, and does not, in fact, control, advise with respect to, or have 
knowledge of those holdings and transactions;

[[Page 829]]

    (iii) Securities issued by the United States Government or one of 
its agencies;
    (iv) Investments in funds administered by the Thrift Savings Plan or 
by any retirement plan administered by a Federal government agency; and
    (v) Certificates of deposit or other comparable instruments issued 
by depository institutions subject to Federal regulation and Federal 
deposit insurance.
    (2) The following holdings and transactions are exempt from the 
requirements of paragraphs (c), (d), and (e), but these interests must 
be reported in accordance with this paragraph (f) of this section:
    (i) The holdings of a trust in which the member or employee (or the 
member's or employee's spouse, the member's or employee's unemancipated 
minor child, or person for whom the member or employee serves as legal 
guardian) is:
    (A) Solely a vested beneficiary of an irrevocable trust; or
    (B) Solely a vested beneficiary of a revocable trust where the trust 
instrument expressly directs the trustee to make present, mandatory 
distributions of trust income or principal; provided, the member or 
employee did not create the trust, has no power to control, and does 
not, in fact, control or advise with respect to the holdings and 
transactions of the trust;
    (ii) Acceptance or reinvestment of stock dividends on securities 
already owned;
    (iii) Exercise of a right to convert securities; and
    (iv) The acquisition of stock or the acquisition or the exercise of 
employee stock options, or other comparable instruments, received as 
compensation from an issuer that is:
    (A) The member's or employee's former employer; or
    (B) The present or former employer of the member's or employee's 
spouse.
    (h) Waivers. (1) Members may request from the Commission a waiver of 
the prohibitions or limitations that would otherwise apply to a 
securities holding or transaction on the grounds that application of the 
rule would cause an undue hardship. A member requests a waiver by 
submitting a confidential written application to the Commission's Office 
of the General Counsel's Ethics Office. The DAEO will review the request 
and provide to the Commission a recommendation for resolution of the 
waiver request. In developing a recommendation, the DAEO may consult, on 
a confidential basis, other Commission personnel as the DAEO in his or 
her discretion considers necessary.
    (2) Employees may request from the DAEO a waiver of the prohibitions 
or limitations that would otherwise apply to a securities holding or 
transaction on the grounds that application of the rule would cause an 
undue hardship. An employee requests a waiver by submitting a 
confidential written application to the Commission's Office of the 
General Counsel's Ethics Office in the manner prescribed by the DAEO. In 
considering a waiver request, the DAEO, or his or her designee, may 
consult with the employee's supervisors and other Commission personnel 
as the DAEO in his or her discretion considers necessary.
    (3) The Commission or the DAEO, as applicable, will provide written 
notice of its determination of the waiver request to the requesting 
member or employee.
    (4) The Commission or the DAEO, as applicable, may condition the 
grant of a waiver under this provision upon the agreement to certain 
undertakings (such as execution of a written statement of 
disqualification) to avoid the appearance of misuse of position or loss 
of impartiality, and to ensure confidence in the impartiality and 
objectivity of the Commission. The Commission or DAEO, as applicable, 
shall note the existence of conditions on the waiver and describe them 
in reasonable detail in the text of the waiver-request determination.
    (5) The grant of a waiver requested pursuant to this section must 
reflect the judgment that the waiver:
    (i) Is necessary to avoid an undue hardship; and, under the 
particular circumstances, application of the prohibition or restriction 
is not necessary to avoid the appearance of misuse of position or loss 
of impartiality, or otherwise necessary to ensure confidence in

[[Page 830]]

the impartiality and objectivity of the Commission;
    (ii) Is consistent with 18 U.S.C. 208 (Acts affecting a personal 
financial interest), 5 CFR part 2635 (Standards of ethical conduct for 
employees of the executive branch), and 5 CFR part 2640 (Interpretation, 
exemptions and waiver guidance concerning 18 U.S.C. 208); and
    (iii) Is not otherwise prohibited by law.
    (6) The determination of the Commission with respect to a member's 
request for a waiver is final and binding on the member.
    (7) The determination of the DAEO with respect to an employee's 
request for a waiver may be appealed to the Commission, in accordance 
with the requirements of Rules 430 and 431 of the Commission's Rule of 
Practice, 17 CFR 201.430, 201.431. The determination of the DAEO or, if 
appealed, the Commission, is final and binding on the employee.
    (8) Notwithstanding the grant of a waiver, a member or employee 
remains subject to the disqualification requirements of 5 CFR 2635.402 
(Disqualifying financial interests) and 5 CFR 2635.502 (Personal and 
business relationships) with respect to transactions or holdings subject 
to the waiver.
    (i) Required disposition of securities. The DAEO is authorized to 
require disposition of securities acquired as a result of a violation of 
the provisions of this section, whether unintentional or not. The DAEO 
shall report repeated violations to the Commission for appropriate 
action.



Sec.  4401.103  Outside employment and activities.

    (a) Definitions. As used in this section:
    (1) Employee is defined in 5 CFR 2635.102(h) and includes employees 
and special government employees of the Commission.
    (2) Employment is defined broadly, as any form of non-Federal 
employment or business relationship, involving the provision of personal 
services by the employee. It includes services as an officer, director, 
employee, agent, attorney, accountant, consultant, contractor, general 
partner, trustee, teacher, writer, or speaker, but does not include 
participation in the activities of a nonprofit charitable, religious, 
professional, civic, or public service organization, unless such 
activities:
    (i) Involve serving as an officer or director of the organization;
    (ii) Involve providing professional services or advice to the 
organization;
    (iii) Are for compensation, other than reimbursement of expenses; or
    (iv) Involve serving as an active participant (as defined in 5 CFR 
2635.502(b)(1)(v)) in a professional organization whose interests may be 
substantially affected by the Commission.
    (3) Professional services means practicing a profession as the term 
``profession'' is defined in 5 CFR 2636.305(b)(1).
    (4) DAEO is the Designated Agency Ethics Official.
    (b) Pro bono and community service. Subject to the prohibitions, 
restrictions and requirements contained in law and Federal regulations, 
including 18 U.S.C. 203 (Compensation to members of Congress, officers, 
and others in matters affecting the Government), 205 (Activities of 
officers and employees in claims against and other matters affecting the 
Government), and 208 (Acts affecting a personal financial interest), 5 
CFR part 2634 (Executive branch financial disclosure), 5 CFR part 2635 
(Standards of ethical conduct for employees of the executive branch), 
and paragraph (c) of this section, employees are encouraged to 
participate in matters involving improvement to their communities, and, 
when qualified, to provide professional pro bono services.
    (c) Prohibitions and restrictions on outside employment and 
activities--(1) Prohibitions and restrictions on employees other than 
members.
    (i) No employee may engage in any outside employment or activities 
that conflict with employment with the Commission.
    (ii) [Reserved]
    (iii) No employee shall undertake the following types of employment 
or activities:
    (A) Employment with any entity regulated by the Commission;
    (B) Employment or any activity directly or indirectly related to the 
issuance, purchase, sale, investment or

[[Page 831]]

trading of securities or futures on securities or a group of securities, 
except this prohibition does not apply to securities holdings or 
transactions permitted by Sec.  4401.102;
    (C) Employment otherwise involved with the securities industry; or
    (D) Employment otherwise in violation of any applicable law, rule or 
regulation.
    (2) Prohibitions and restrictions on members. (i) Members of the 
Commission may engage in outside employment only to the extent permitted 
by Section 4(a) of the Securities Exchange Act of 1934, 15 U.S.C. 
78d(a). This provision does not preclude members from engaging in 
permitted securities transactions.
    (ii) Notwithstanding the absence of a statutory prohibition, a 
member may not engage in any outside employment or activity, if such 
outside employment or activity would materially impair the member's 
ability to perform properly the member's duties. Such outside employment 
or activity includes such fiduciary relationships such as serving as a 
trustee, executor or corporate director.
    (d) Employees are required to submit proposed publications or 
prepared speeches relating to the Commission, or the statutes or rules 
it administers, to the Commission's Office of the General Counsel's 
Ethics Office for review, pursuant to the Commission's Regulation 
Concerning Conduct of Members and Employees and Former Members and 
Employees of the Commission, 17 CFR 200.735-4 (Outside Employment and 
Activities). Any such publication or speech must include the disclaimer 
prescribed in 17 CFR 200.735-4(c). Employees who wish to engage in 
teaching, writing or speaking for compensation should review the 
provisions of 5 CFR 2635.807 (Teaching, Speaking, and Writing).

[75 FR 42273, July 20, 2010, as amended at 76 FR 19902, Apr. 11, 2011]

                       PARTS 4402	4499 [RESERVED]

[[Page 833]]



              CHAPTER XXXV--OFFICE OF PERSONNEL MANAGEMENT




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                    for employees of the Office of Personnel 
                    Management..............................         835
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[[Page 835]]

                          PART 4500 [RESERVED]



PART 4501_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE OFFICE OF PERSONNEL MANAGEMENT--Table of Contents



Sec.
4501.101 General.
4501.102 Examination information.
4501.103 Prior approval for certain outside activities.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978), 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; 5 CFR 2635.105, 
2635.702, 2635.703, 2635.802, 2635.803, 2635.805.

    Source: 61 FR 36996, July 16, 1996, unless otherwise noted.



Sec.  4501.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Office of Personnel Management (OPM) and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. In addition to the 
regulations in 5 CFR part 2635 and this part, OPM employees are subject 
to the responsibilities and conduct regulations contained in 5 CFR parts 
735 and 1001, the executive branch-wide financial disclosure regulations 
contained in 5 CFR part 2634, and the executive branch regulations 
regarding outside employment at 5 CFR part 2636.



Sec.  4501.102  Examination information.

    (a) An employee of OPM who takes part in the construction of written 
tests or any other assessment device, has access to such material, or is 
involved in the examination rating process, shall notify his supervisor, 
in writing, when he intends to file for a competitive examination, an 
internal competitive examination, or an Armed Services entrance 
examination. The employee also must give such notice if he knows that 
his spouse, minor child, or business general partner intends to take any 
of these examinations.
    (b) The employee's supervisor or other appropriate authority will 
arrange the employee's duty assignments to prevent his contact with 
materials related to the examination or examinations that will be taken. 
If the test material involved in the forthcoming examination has already 
been exposed to the employee, arrangements will be made for the employee 
or other person concerned to be given an alternate test.
    (c) The employee's supervisor is responsible for seeing that 
notifications given by employees under this section are transmitted 
promptly to the Test Security Officer in OPM's Employment Service.



Sec.  4501.103  Prior approval for certain outside activities.

    (a) Prior approval requirement. An employee, other than a special 
Government employee, shall obtain written approval before engaging--with 
or without compensation--in the following outside activities:
    (1) Providing professional services involving the application of the 
same specialized skills or the same educational background as 
performance of the employee's official duties;
    (2) Teaching, speaking, or writing that relates to the employee's 
official duties;
    (3) Serving as an officer, director, trustee, general partner, 
employee, agent, attorney, consultant, contractor, or active participant 
for a prohibited source, except that prior approval is not required by 
this paragraph (a)(3) to provide such service without compensation 
(other than reimbursement of expenses) for a prohibited source that is a 
nonprofit charitable, religious, professional, social, fraternal, 
educational, recreational, public service, or civic organization, unless 
prior approval for the activity is required by paragraph (a)(1), (a)(2), 
or (a)(4) of this section, or unless the organization receives or seeks 
to receive fundraising support through the Combined Federal Campaign 
(CFC) under 5 CFR part 950 and the employee's official duties involve 
the administration of the CFC program; or
    (4)(i) Except as provided in paragraph (a)(4)(ii) of this section, 
providing services, other than clerical services or service as a fact 
witness, on behalf of any other person in connection with a particular 
matter:

[[Page 836]]

    (A) In which the United States is a party;
    (B) In which the United States has a direct and substantial 
interest; or
    (C) If the provision of services involves the preparation of 
materials for submission to, or representation before, a Federal court 
or executive branch agency.
    (ii) Prior approval is not required by paragraph (a)(4)(i) of this 
section for OPM employees acting on behalf of the labor organization 
that is the exclusive representative of the OPM employees in the unit it 
represents to provide services as an agent or attorney for, or otherwise 
to represent, such an OPM employee who is the subject of disciplinary, 
loyalty, or other personnel administration proceedings in connection 
with those proceedings.
    (b) Submission of requests for approval. (1) Requests for approval 
shall be submitted in writing to the agency designee, through normal 
supervisory channels. Such requests shall include, at a minimum, the 
following:
    (i) The employee's name and position title;
    (ii) The name and address of the person or organization for whom the 
outside activity is to be performed;
    (iii) A description of the proposed outside activity, including the 
duties and services to be performed while engaged in the activity; and
    (iv) The proposed hours that the employee will engage in the outside 
activity, and the approximate dates of the activity.
    (2) Together with his request for approval, the employee shall 
provide a certification that:
    (i) The outside activity will not depend in any way on nonpublic 
information;
    (ii) No official duty time or Government property, resources, or 
facilities not available to the general public will be used in 
connection with the outside activity; and
    (iii) The employee has read subpart H (``Outside Activities'') of 5 
CFR part 2635.
    (3) Upon a significant change in the nature or scope of the outside 
activity or in the employee's official position, the employee shall 
submit a revised request for approval.
    (c) Approval of requests. Approval shall be granted only upon a 
determination by the agency designee, in consultation with an agency 
ethics official when such consultation is deemed necessary by the agency 
designee, that the outside activity is not expected to involve conduct 
prohibited by statute or Federal regulation, including 5 CFR part 2635.
    (d) Definitions. For purposes of this section:
    (1) Active participant has the meaning set forth in 5 CFR 
2635.502(b)(1)(v).
    (2) Nonpublic information has the meaning set forth in 5 CFR 
2635.703(b).
    (3) Professional services means the provision of personal services 
by an employee, including the rendering of advice or consultation, which 
involves application of the skills of a profession as defined in 5 CFR 
2636.305(b)(1).
    (4) Prohibited source has the meaning set forth in 5 CFR 
2635.203(d).
    (5) Relates to the employee's official duties has the meaning set 
forth in 5 CFR 2635.807(a)(2)(i)(B) through (a)(2)(i)(E).

[61 FR 36996, July 16, 1996; 62 FR 32859, June 17, 1997]

                       PARTS 4502	4599 [RESERVED]

[[Page 837]]



             CHAPTER XXXVI--DEPARTMENT OF HOMELAND SECURITY




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                    Homeland Security.......................         839
4602-4699

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                          PART 4600 [RESERVED]



PART 4601_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF HOMELAND SECURITY--Table of Contents



Sec.
4601.101 General.
4601.102 Designation of DHS components as separate agencies.
4601.103 Prior approval for outside employment and activities.
4601.104 Additional rules for U.S. Customs and Border Protection (CBP) 
          employees.
4601.105 Additional rules for Federal Emergency Management Agency (FEMA) 
          employees.
4601.106 Additional rules for U.S. Immigration and Customs Enforcement 
          (ICE) employees.
4601.107 Prohibited purchases of property.
4601.108 Reporting waste, fraud, abuse, and corruption.

    Authority: 5 U.S.C. 301, 7301, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 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; 
5 CFR 2635.105, 2635.203(a), 2635.403(a), 2635.702, 2635.703, 
2635.802(a), 2635.803, 2635.

    Source: 81 FR 6167, Jan. 5, 2016, unless otherwise noted.



Sec.  4601.101  General.

    (a) Applicability. In accordance with 5 CFR 2635.105, the 
regulations in this part apply to employees of the Department of 
Homeland Security (DHS) and supplement the Standards of Ethical Conduct 
for Employees of the Executive Branch (OGE Standards) in 5 CFR part 
2635.
    (b) Cross-references to other ethics regulations and guidance. In 
addition to the OGE Standards in 5 CFR part 2635 and this part, DHS 
employees are subject to the Executive branch financial disclosure 
regulations contained in 5 CFR parts 2634, the Executive branch 
financial interests regulations contained in 5 CFR part 2640, the 
Executive branch employee responsibilities and conduct regulations 
contained in 5 CFR part 735, and DHS guidance and procedures on employee 
conduct, including those issued under paragraph (c) of this section.
    (c) DHS agency instructions. Prior to issuance, the DHS Designated 
Agency Ethics Official (DAEO) must approve any internal instructions or 
manuals that DHS agencies, as designated in Sec.  4601.102 of this part, 
issue to provide explanatory ethics-related guidance and to establish 
procedures necessary to implement 5 CFR part 2635 and this part.
    (d) Definitions--(1) Agency designee as used in this part and in 5 
CFR part 2635 means an employee who has been identified in an 
instruction or manual issued by an agency under paragraph (c) of this 
section to make a determination, give an approval, or take other action 
required or permitted by this part or 5 CFR part 2635 with respect to 
another employee.
    (2) Outside employment or activity as used in this part means any 
form of non-Federal employment, business activity, business 
relationship, or other covered activity as identified in this section, 
involving the provision of personal services by the employee, whether or 
not for compensation. It includes, but is not limited to, personal 
services as an officer, director, employee, agent, attorney, advisor, 
consultant, contractor, general partner, trustee, or teacher. There are 
several exclusions and limitations to the definition as described 
immediately below.
    (i) Speaking and writing activities. Outside employment generally 
does not include speaking and writing activities so long as they are not 
combined with the provision of other services that do fall within this 
definition, such as the practice of law and other outside employment or 
activities covered by paragraph (d)(2)(ii)(A) through (D) of this 
section. Employees who wish to engage in compensated speaking or writing 
in a personal capacity are subject to the provisions of 5 CFR 2635.807 
and are encouraged to seek additional guidance from an agency ethics 
official.
    (ii) Nonprofit and other organizations. Outside employment does not 
include participation in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service, or civic organization, unless the participation 
involves:
    (A) Acting in a fiduciary capacity,
    (B) Providing professional services for compensation,

[[Page 840]]

    (C) Rendering advice for compensation other than the reimbursement 
of expenses, or
    (D) An activity relating to the employee's official duties as 
defined in 5 CFR 2635.807(a)(2)(i)(A) through (E), to include activities 
relating to any ongoing or announced policy, program, or operation of 
the employee's agency as it is defined at 5 CFR 4601.102.
    (iii) The Hatch Act. Outside employment does not include activities 
otherwise permissible by the Hatch Act and related regulations relating 
to partisan political activities.
    (iv) Military service. Outside employment does not include state or 
Federal military service protected by the Uniformed Services Employment 
and Reemployment Rights Act.
    (v) Additional restrictions for certain employees. Employees of the 
Federal Emergency Management Agency, U.S. Customs and Border Protection, 
and U.S. Immigration and Customs Enforcement should also refer to the 
agency-specific provisions in this part relating to outside employment.
    (3) Chief Deputy Ethics Official as used in this part means the 
persons delegated authority by the DHS DAEO to manage and coordinate the 
ethics programs within the DHS components pursuant to the DAEO's 
authority in 5 CFR 2638.204.
    (4) ``Special Government Employee'' as used in this part has the 
same meaning as in 18 U.S.C. 202(a).



Sec.  4601.102  Designation of DHS components as separate agencies.

    (a) Pursuant to 5 CFR 2635.203(a), DHS designates each of the 
following components as a separate agency for purposes of the 
regulations in subpart B of 5 CFR part 2635 governing gifts from outside 
sources, including determining whether the donor of a gift is a 
prohibited source under 5 CFR 2635.203(d); for purposes of the 
regulations in Sec.  4601.103(c) of this part governing the 
establishment of procedures for obtaining prior approval for outside 
employment; for purposes of the regulations in Sec.  4601.103(c) of this 
part governing the designation of officials; and for the purposes of the 
regulations in 5 CFR 2635.807 governing teaching, speaking, and writing:
    (1) Federal Emergency Management Agency (FEMA);
    (2) Federal Law Enforcement Training Center;
    (3) Transportation Security Administration;
    (4) U.S. Citizenship and Immigration Services;
    (5) U.S. Coast Guard;
    (6) U.S. Customs and Border Protection (CBP);
    (7) U.S. Immigration and Customs Enforcement (ICE); and
    (8) U.S. Secret Service.
    (b)(1) DHS will treat employees of DHS components not designated as 
separate agencies in paragraph (a) of this section, including employees 
of the Office of the Secretary, as employees of the remainder of DHS. 
For purposes of the regulations in subpart B of 5 CFR part 2635 
governing gifts from outside sources, including determining whether the 
donor of a gift is a prohibited source under 5 CFR 2635.203(d); for 
purposes of the regulations in Sec.  4601.103(c) of this part governing 
the establishment of procedures for obtaining prior approval for outside 
employment; for purposes of the regulations in Sec.  4601.103(c) of this 
part governing the designation of officials; and for purposes of the 
regulations in 5 CFR 2635.807 governing teaching, speaking, and writing, 
DHS will treat the remainder of DHS as a single agency that is separate 
from the components designated as separate agencies in paragraph (a) of 
this section.
    (2) For the limited purposes of establishing procedures for 
obtaining prior approval for outside employment and designating 
officials pursuant to Sec.  4601.103(c) of this part, DHS will treat the 
DHS Office of Inspector General as a separate agency.
    (c) An employee on detail from his or her employing agency to 
another agency for a period in excess of 30 calendar days is subject to 
the supplemental regulations and instructions of the agency to which he 
is detailed rather than his or her employing agency.



Sec.  4601.103  Prior approval for outside employment and activities.

    (a) General requirement for approval. A DHS employee, other than a 
Special Government Employee, shall obtain

[[Page 841]]

prior written approval before engaging in any outside employment or 
activity (as defined by Sec.  4601.101 of this part), with or without 
compensation, unless the employee's agency has exempted the outside 
employment or activity (or category or class of outside employment or 
activity) from this requirement by an instruction or manual issued 
pursuant to paragraph (c) of this section.
    (b) Standard for approval. Approval shall be granted unless it has 
been determined that the outside employment is expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635 and this part.
    (c) Agency responsibilities. (1) With the approval of the DHS DAEO, 
each agency as set forth in Sec.  4601.102 of this part shall issue 
internal instructions or a manual governing the submission of requests 
for approval of outside employment and activities and designating 
appropriate officials to act on such requests not later than May 5, 
2016.
    (2) The instructions or manual may exempt particular outside 
employment or activities (or categories or classes of outside employment 
or activities) from the prior approval requirement of this section if 
such outside employment or activities would generally be approved and 
are not likely to involve conduct prohibited by statute or Federal 
regulation, including 5 CFR part 2635 and this part. Agencies may 
include in their instructions or manual examples of outside employment 
or activities that are permissible or prohibited consistent with 5 CFR 
part 2635 and this part.
    (3) In the absence of a manual or instruction identifying a person 
designated to act upon a request for approval for outside employment, 
the Chief Deputy Ethics Official at each agency shall act upon a 
request.



Sec.  4601.104  Additional rules for U.S. Customs and Border Protection 
(CBP) employees.

    The following rules apply to employees of CBP, except Special 
Government Employees, and are in addition to Sec. Sec.  4601.101 through 
4601.103 and Sec. Sec.  4601.107 and 4601.108 of this part:
    (a) Prohibitions on outside employment and activities. (1) No CBP 
employee shall be employed by or engage in activities in support of or 
on behalf of a customs broker; international carrier; bonded warehouse; 
foreign trade zone as defined in 15 CFR 400.2; cartman; law firm engaged 
in the practice of customs, immigration, or agriculture law; entity 
engaged in the enforcement of customs, immigration, or agriculture law; 
importation or exportation department of a business; or business or 
other entity which engages in services related to agriculture matters 
where such agriculture matters relate to CBP's mission.
    (2) No CBP employee shall, in any private capacity, engage in 
employment or a business activity related to the importation or 
exportation of merchandise or agricultural products requiring inspection 
(other than a personal, routine consumer transaction unrelated to the 
operation of a business), or the entry of persons into or departure of 
persons from the United States.
    (3) No CBP employee shall engage in outside employment or activities 
for a non-profit or other organization that involve assisting persons 
with matters related to the entry of persons or merchandise into or the 
departure of persons or merchandise from the United States, or matters 
related to obtaining temporary or permanent residency, citizenship, 
adjustment of status, or other immigration-related benefits.
    (b) Restrictions arising from employment of the spouse, relatives, 
members of the employee's household, or financial dependents. (1) A CBP 
employee shall notify in writing his or her agency designee when any of 
the following circumstances exist:
    (i) The spouse of the CBP employee is employed in a position that 
the CBP employee would be prohibited from occupying by paragraph (a) of 
this section;
    (ii) A relative (as defined in 5 CFR 2634.105(o)), who is 
financially dependent on or who is a member of the household of the CBP 
employee, is employed in a position that the CBP employee would be 
prohibited from occupying by paragraph (a) of this section; or

[[Page 842]]

    (iii) Any person, other than the spouse or relative of the CBP 
employee, who is financially dependent on or who is a member of the 
household of the CBP employee, is employed in a position that the CBP 
employee would be prohibited from occupying by paragraph (a) of this 
section.
    (2) The CBP employee shall be disqualified from participating in an 
official capacity in any particular matter involving the individuals 
identified in paragraph (b)(1) of this section, or the employer thereof, 
unless the agency designee, with the advice and clearance of the CBP 
Chief Deputy Ethics Official, authorizes the CBP employee to participate 
in the matter using the standard in 5 CFR 2635.502(d), or the waiver 
provisions in 18 U.S.C. 208(b)(1), as appropriate.



Sec.  4601.105  Additional rules for Federal Emergency Management Agency 
(FEMA) employees.

    The following rules apply to employees of FEMA, except Special 
Government Employees, and are in addition to Sec. Sec.  4601.101 through 
4601.103 and 4601.107 and 4601.108 of this part:
    (a) Prohibited outside employment (intermittent employees). Except 
as provided in paragraph (c) of this section, no intermittent FEMA 
employees hired under the authority of 42 U.S.C. 5149, which includes 
all Disaster Assistance Employees or Stafford Act Employees and Cadre of 
On-Call Response Employees, shall be employed by a current FEMA 
contractor while a FEMA employee, whether or not they are on activated 
status.
    (b) Prohibited outside employment (non-intermittent employees). 
Except as provided in paragraph (c) of this section, no non-intermittent 
FEMA employee shall be employed by a current FEMA contractor.
    (c) Waivers. The FEMA Chief Deputy Ethics Official or his or her 
agency designee may grant a written waiver of any prohibition in 
paragraphs (a) and (b) of this section with the DAEO's concurrence. To 
grant the waiver, the FEMA Chief Deputy Ethics Official or his or her 
agency designee must determine that the waiver is consistent with 5 CFR 
part 2635 and not otherwise prohibited by law; that the prohibition is 
not necessary to avoid the appearance of misuse of position or loss of 
impartiality; and that the waiver will not undermine the public's 
confidence in the employee's impartiality and objectivity in 
administering FEMA programs. A waiver under this paragraph may impose 
appropriate conditions, such as requiring execution of a written 
disqualification statement.



Sec.  4601.106  Additional rules for U.S. Immigration and Customs Enforcement 
(ICE) employees.

    The following rules apply to employees of ICE, except Special 
Government Employees, and are in addition to Sec. Sec.  4601.101 through 
4601.103 and 4601.107 and 4601.108 of this part:
    (a) Prohibitions on outside employment and activities. (1) No ICE 
employee shall be employed by or engage in activities in support of or 
on behalf of a customs broker; international carrier; bonded warehouse; 
foreign trade zone as defined in 15 CFR 400.2; cartman; law firm engaged 
in the practice of customs, immigration or agriculture law; entity 
engaged in the enforcement of customs, immigration or agriculture law; 
importation department of a business; or business or other entity which 
engages in agriculture matters where such agriculture matters relate to 
ICE's mission.
    (2) No ICE employee shall, in any private capacity, engage in 
employment or a business activity related to the importation or 
exportation of merchandise or agricultural products requiring inspection 
(other than a personal, routine consumer transaction unrelated to the 
operation of a business), or the entry of persons into or the departure 
of persons from the United States.
    (3) No ICE employee shall engage in outside employment or activities 
for a non-profit or other organization that involve assisting persons 
with matters related to the entry of persons or merchandise into or the 
departure of persons or merchandise from the United States, or matters 
related to obtaining temporary or permanent residency, citizenship, 
adjustment of status, or other immigration-related benefits.
    (b) Restrictions arising from employment of spouse, relatives, 
members of the

[[Page 843]]

employee's household, or financial dependents. (1) An ICE employee shall 
notify in writing his or her agency designee when any of the following 
circumstances exist:
    (i) The spouse of the ICE employee is employed in a position that 
the ICE employee would be prohibited from occupying by paragraph (a) of 
this section;
    (ii) A relative (as defined in 5 CFR 2634.105(o)) who is financially 
dependent on or who is a member of the household of the ICE employee is 
employed in a position that the ICE employee would be prohibited from 
occupying by paragraph (a) of this section; or
    (iii) Any person, other than the spouse or relative of the ICE 
employee, who is financially dependent on or who is a member of the 
household of the ICE employee, is employed in a position that the ICE 
employee would be prohibited from occupying by paragraph (a) of this 
section.
    (2) The ICE employee shall be disqualified from participating in an 
official capacity in any particular matter involving the individuals 
described in paragraph (b)(1) of this section or the employer thereof, 
unless the agency designee, with the advice and clearance of the ICE 
Chief Deputy Ethics Official, authorizes the ICE employee to participate 
in the matter using the standard in 5 CFR 2635.502(d), or the waiver 
provisions in 18 U.S.C. 208(b)(1), as appropriate.



Sec.  4601.107  Prohibited purchases of property.

    (a) General prohibition. Except as provided in paragraph (c) of this 
section, no DHS employee may purchase, directly or indirectly, property 
that is:
    (1) Owned by the Federal Government and under the control of the 
employee's agency, unless the sale of the property is being conducted by 
the General Services Administration; or
    (2) Seized or forfeited under the direction or incident to the 
functions of the employee's agency.
    (b) Designated separate components. For purposes of this section, 
the employee's agency is the relevant separate agency component as set 
forth in Sec.  4601.102 of this part.
    (c) Waiver. Employees may make a purchase prohibited by paragraph 
(a) of this section where a written waiver of the prohibition is issued 
in advance by the agency designee with the clearance of the DAEO or his 
or her designee. A waiver may only be granted if it is not otherwise 
prohibited by law or regulation and the purchase of the property will 
not cause a reasonable person with knowledge of the particular 
circumstances to question the employee's impartiality, or create the 
appearance that the employee has used his or her official position or 
nonpublic information for his or her personal gain.



Sec.  4601.108  Reporting waste, fraud, abuse, and corruption.

    Employees shall disclose waste, fraud, abuse, and corruption to 
appropriate authorities, such as the DHS Office of Inspector General.

                       PARTS 4602	4699 [RESERVED]

[[Page 845]]



               CHAPTER XXXVII--FEDERAL ELECTION COMMISSION




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                    for employees of the Federal Election 
                    Commission..............................         847
4702-4799

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                          PART 4700 [RESERVED]



PART 4701_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL ELECTION COMMISSION--Table of Contents



Sec.
4701.101 Scope.
4701.102 Prior approval for certain outside employment.

    Authority: 2 U.S.C. 437c(a)(3); 5 U.S.C. 7301; 5 U.S.C. app. (Ethics 
in Government Act of 1978); E.O. 12674, 54 FR 15159, 3 CFR p. 215 (1989 
Comp.), as modified by E.O. 12731, 55 FR 42547, 3 CFR p. 306 (1990 
Comp.); 5 CFR 2635.105 and 2635.803.

    Source: 76 FR 70329, Nov. 14, 2011, unless otherwise noted.



Sec.  4701.101  Scope.

    (a) In accordance with 5 CFR 2635.105, the regulations in this part 
set forth standards of conduct that apply to members and other employees 
of the Federal Election Commission (``Commission'').
    (b) In addition, members and other employees of the Commission are 
subject to the following regulations:
    (1) 5 CFR part 735 (Employee Responsibilities and Conduct);
    (2) 5 CFR part 2634 (Executive Branch Financial Disclosure, 
Qualified Trusts, and Certificates of Divestiture);
    (3) 5 CFR part 2635 (Standards of Ethical Conduct for Employees of 
the Executive Branch); and
    (4) 11 CFR part 7 (Standards of Conduct for Members and Employees of 
the Federal Election Commission).



Sec.  4701.102  Prior approval for certain outside employment.

    (a) Definitions. For purposes of this section:
    (1) Active participant has the meaning set forth in 5 CFR 
2635.502(b)(1)(v).
    (2) Employee has the meaning set forth in 5 CFR 2635.102(h).
    (3) Definition of outside employment. For purposes of this section, 
outside employment means any form of non-Federal employment, business 
relationship or activity involving the provision of personal services, 
whether or not for compensation. It includes, but is not limited to, 
services as an officer, director, agent, advisor, attorney, consultant, 
contractor, general partner, trustee, teacher, speaker, writer, or any 
other services provided by an individual. It includes writing when done 
under an arrangement with another person for production or publication 
of the written product. The definition does not include participation in 
the activities of a nonprofit charitable, religious, professional, 
social, fraternal, educational, recreational, public service or civic 
organization, unless:
    (i) The activity provides compensation other than reimbursement of 
expenses;
    (ii) The activities of the non-Federal organization are devoted 
substantially to matters relating to the employee's official duties as 
defined in 5 CFR 2635.807(a)(2)(i)(B) through (E) and the employee will 
serve as officer or director of the non-Federal organization; or
    (iii) The activities will involve the provision of consultative or 
professional services. Consultative services means the provision of 
personal services, including the rendering of advice or consultation, 
which requires advanced knowledge in a field of science or learning 
customarily acquired by a course of specialized instruction and study in 
an institution of higher education, hospital, or similar facility. 
Professional services means the provision of personal services, 
including the rendering of advice or consultation, which involves 
application of the skills of a profession as defined in 5 CFR 
2636.305(b)(1) or involves a fiduciary relationship as defined in 5 CFR 
2636.305(b)(2).
    (4) Related to the employee's official duties means that the outside 
employment meets one or more of the tests described in 5 CFR 
2635.807(a)(2)(i)(B) through (E). Outside employment related to the 
employee's official duties includes:
    (i) Outside employment that an employee has been invited to 
participate in because of his or her official position rather than his 
or her expertise in the subject matter;
    (ii) Outside employment in which an employee has been asked to 
participate by a person that has interests that may be substantially 
affected by the performance or nonperformance of the employee's official 
duties;

[[Page 848]]

    (iii) Outside employment that conveys information derived from 
nonpublic information gained during the course of government employment; 
and
    (iv) Outside employment that deals in significant part with any 
matter to which the employee is or has been officially assigned in the 
last year, or any ongoing or announced Commission policy, program, or 
operation.
    (b) Prior approval requirement. An employee of the Commission, 
including a member of a Commissioner's staff, but not a member of the 
Commission or a special Government employee, shall obtain written 
approval from the Designated Agency Ethics Official before engaging in 
outside employment where the services provided:
    (1) Are related to the employee's official duties; or
    (2) Involve the application of the same specialized skills or the 
same educational background as used in the performance of the employee's 
official duties.
    (c) Submission of requests for approval. (1) The request for 
approval shall be sent through all of the employee's supervisors and 
shall state the name of the person, group, or organization for whom the 
outside employment is to be performed; the type of outside employment to 
be performed; and the proposed hours of, and approximate dates of, the 
outside employment.
    (2) Upon a significant change in the nature or scope of the outside 
employment or in the employee's official position, the employee shall 
submit a revised request for approval.
    (d) Standard for approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635.

                       PARTS 4702	4799 [RESERVED]

[[Page 849]]



               CHAPTER XL--INTERSTATE COMMERCE COMMISSION




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5001            Supplemental standards of ethical conduct 
                    for employees of the Interstate Commerce 
                    Commission..............................         851
5002-5099

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[[Page 851]]

                          PART 5000 [RESERVED]



PART 5001_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE INTERSTATE COMMERCE COMMISSION--Table of Contents



Sec.
5001.101 General.
5001.102 Prohibited financial interests in for-hire transportation 
          companies.
5001.103 Impartiality determinations for members of the Interstate 
          Commerce Commission.
5001.104 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 49 U.S.C. 10301, 10306, 10321; E.O. 12674, 54 FR 15159, 3 CFR, 
1989 Comp. at 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 
Comp., at 306; 5 CFR 2635.105, 2635.403, 2635.803.

    Source: 58 FR 41990, Aug. 6, 1993, unless otherwise noted.



Sec.  5001.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to members and other employees of the Interstate Commerce 
Commission and supplement the Standards of Ethical Conduct for Employees 
of the Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635 and this part, members and other employee 
are subject to the executive branch financial disclosure regulations 
contained in 5 CFR part 2635 and to additional regulations regarding 
their conduct contained in 49 CFR part 1019.



Sec.  5001.102  Prohibited financial interests in for-hire 
transportation companies.

    (a) General prohibition. Except as provided in paragraph (c) of this 
section, no member or other employee of the Interstate Commerce 
Commission shall, directly or indirectly:
    (1) Be employed by or hold any other official relationship with any 
for-hire transportation company whether or not subject to the Interstate 
Commerce Act; or
    (2) Own securities of or be in any manner pecuniarily interested in 
any for-hire transportation company whether or not subject to the 
Interstate Commerce Act.
    (b) Indirect relationships and interests. (1) For the purposes of 
paragraph (a) of this section, an indirect relationship with or interest 
in a for-hire transportation company includes, but is not limited to, an 
interest in:
    (i) Any company that owns or controls and has more than two percent 
of its assets directly invested in or dervices more than two percent of 
its income directly from a for-hire transportation company whether or 
not subject to the Interstate Commerce Act; or
    (ii) Any company, mutual fund or other enterprise which has an 
interest of more than ten percent of its assets directly invested in or 
derives more than ten percent of its income directly from for-hire 
transportation companies whether or not subject to the Interstate 
Commerce Act.
    (2) For the purposes of determining the applicability of this 
paragraph, an employee may rely on the most recent financial statement 
issued to its security holders by the company, fund or other enterprise.
    (c) Exceptions. (1) Where a previously proper holding of a member or 
other employee becomes prohibited because of the enterprise's 
acquisition of an interest in a for-hire transportation company, the 
employee shall have nine months within which to dispose of the interest.
    (2) In cases of financial hardship where the relationship or 
interest is not prohibited by 49 U.S.C. 10301(d) or 10306(e), the 
Designated Agency Ethics Official may grant a written waiver of the 
prohibition in paragraph (a) of this section based on a determination 
that application of the prohibition is not necessary to ensure public 
confidence in the impartiality and objectivity with which the 
Commission's programs are administered or to avoid a violation of part 
2635 of this title.



Sec.  5001.103  Impartiality determinations for members of 
the Interstate Commerce Commission.

    A member is an ``agency designee'' for the purposes of making an 
impartiality disqualification determination under 5 CFR 2635.502(d) with 
respect to

[[Page 852]]

the member's own participation in a Commission proceeding. This 
determination must be made in consultation with the Designated Agency 
Ethics Official.



Sec.  5001.104  Prior approval for outside employment.

    (a) Before engaging in any outside employment, whether or not for 
compensation, an employee of the Interstate Commerce Commission, other 
than a Commissioner, must obtain the written approval of his or her 
supervisor and the Designated Agency Ethics Official (DAEO). Requests 
for approval shall be forwarded through normal supervisory channels to 
the DAEO and shall include, at a minimum, the following:
    (1) A statement of the name of the person, group, or other 
organization for whom the work is to be performed; the type of work to 
be performed; and the proposed hours of work and approximate dates of 
employment;
    (2) The employee's certification that the outside employment will 
not depend in any way on information obtained as a result of the 
employee's official Government position;
    (3) The employee's certification that no official duty time or 
Government property, resources, or facilities not available to the 
general public will be used in connection with the outside employment;
    (4) The employee's certification that he or she has read, is 
familiar with, and will abide by the restrictions contained in all 
applicable Federal laws and regulations, including those found in 18 
U.S.C. chapter 11 and those found or referenced in subpart H (``Outside 
Activities'') of 5 CFR part 2635 (Standards of Ethical Conduct for 
Employees of the Executive Branch); and
    (5) The written approval of the employee's immediate supervisor.
    (b) Approval shall be granted only upon a determination that the 
outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation.
    (c) For purposes of this section, ``employment'' means any form of 
non-Federal employment, business relationship or activity involving the 
provision of personal services by the employee, whether or not for 
compensation. It includes but is not limited to personal services as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner, trustee, teacher or speaker. It includes writing when 
done under an arrangement with another person for production or 
publication of the written product. Prior approval is not required, 
however, to participate in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service, or civic organization, unless such activities involve 
the provision of professional services or advice or are for compensation 
other than reimbursement for expenses.

                       PARTS 5002	5099 [RESERVED]

[[Page 853]]



            CHAPTER XLI--COMMODITY FUTURES TRADING COMMISSION




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5101            Supplemental standards of ethical conduct 
                    for employees of the Commodity Futures 
                    Trading Commission......................         855
5102-5199

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[[Page 855]]

                          PART 5100 [RESERVED]



PART 5101_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE COMMODITY FUTURES TRADING COMMISSION--Table of Contents



Sec.
5101.101 General.
5101.102 Prohibited financial interests and transactions.
5101.103 Outside employment and activities.

    Authority: 5 U.S.C. 7301, 7353; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 7 U.S.C. 4a(f) and (j); 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; 5 CFR 2635.105, 2635.403(a), 2635.802(a), 2635.803.

    Source: 58 FR 52638, Oct. 12, 1993, unless otherwise noted.



Sec.  5101.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to members and other employees of the Commodity Futures Trading 
Commission and supplement the Standards of Ethical Conduct for Employees 
of the Executive Branch contained in 5 CFR part 2635. Members and other 
employees are required to comply with 5 CFR part 2635 and this part. 
Commission members and other employees are also subject to the 
Regulation Concerning Conduct of Members and Employees and Former 
Members and Employees of the Commission at 17 CFR part 140.



Sec.  5101.102  Prohibited financial interests and transactions.

    In accordance with 5 CFR 2635.403(a), no Commission member or other 
employee shall engage in business or financial transactions, or hold 
business or financial interests, prohibited by the Commodity Exchange 
Act, as set forth in 17 CFR 140.735-2.



Sec.  5101.103  Outside employment and activities.

    (a) Subject to the restrictions and requirements contained in 5 CFR 
part 2635 and this part, Commission members and other employees are 
encouraged to engage in teaching, speaking, and writing activities and, 
when qualified, to participate without compensation in programs to 
provide legal assistance and representation to indigents.
    (b) Prohibitions. A Commission member or other employee shall not 
engage in non-Federal employment or any other outside activity that:
    (1) Involves the rendering of advice concerning any legal, 
accounting or economic matter, or any agricultural, mining, foreign 
currency market or other commodity-related matter, in which the 
Commission may be significantly interested, except that this prohibition 
shall not apply to a special Government employee unless the special 
Government employee:
    (i) Has participated personally and substantially as an employee or 
special Government employee in the same matter; or
    (ii) Has served with the Commission 60 days or more during the 
immediately preceding period of 365 consecutive days.
    (2) Involves an appearance in court or on a brief in a 
representative capacity in relation to any matter which relates to any 
policy, program or operation of the Commission; or
    (3) Is prohibited by section 2(a)(7) of the Commodity Exchange Act, 
as incorporated in 17 CFR 140.735-2 and 140.735-3. That statute provides 
that no Commission member or employee shall accept employment or 
compensation from any person, exchange or clearinghouse subject to 
regulation by the Commission, or participate, directly or indirectly, in 
any contract market operations or transactions of a character subject to 
regulation by the Commission.
    (c) Prior approval for outside employment. (1) Before engaging in 
any outside employment, with or without compensation, an employee of the 
Commission, other than a special Government employee, must obtain 
written approval from his or her division or office head and the 
Executive Director, who may seek the concurrence of the General Counsel.
    (2) In addition to the approval under paragraph (c)(1) of this 
section, an employee, including a special Government employee, must 
obtain written approval from the Commission to appear in court or on a 
brief in a representative capacity.

[[Page 856]]

    (3) Approval shall be granted only upon a determination that the 
outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635 and this part.
    (4) The approval required by paragraph (c)(1) or (c)(2) of this 
section shall be requested in writing in advance of engaging in outside 
employment. The request shall be submitted to the employee's division or 
office head, through the employee's immediate supervisor, and shall set 
forth all pertinent facts regarding the anticipated employment, 
including the name of the employer, the nature of the work to be 
performed, its estimated duration and the amount of compensation to be 
received. If approved by the division or office head, the request shall 
be forwarded by the division or office head to the Executive Director. 
In granting or denying approval, the Executive Director may seek the 
concurrence of the General Counsel. If approved by the Executive 
Director, a request for permission to appear in court or on a brief in a 
representational capacity shall be forwarded to the Commission for final 
decision.
    (5) For purposes of this section, ``employment'' means any form of 
non-Federal employment or business relationship involving the provision 
of personal services by the employee. It includes, but is not limited to 
personal services as an officer, director, employee, agent, attorney, 
consultant, contractor, general partner, trustee, teacher or speaker. It 
includes writing when done under an arrangement with another person for 
production or publication of the written product. It does not, however, 
include participation in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service, or civic organization, unless such activities involve 
the provision of professional services or advice or are for compensation 
other than reimbursement of expenses.

                       PARTS 5102	5199 [RESERVED]

[[Page 857]]



                    CHAPTER XLII--DEPARTMENT OF LABOR




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Part                                                                Page
5200

 [Reserved]

5201            Supplemental standards of ethical conduct 
                    for employees of the Department of Labor         859
5202-5299

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[[Page 859]]

                          PART 5200 [RESERVED]



PART 5201_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF LABOR--Table of Contents



Sec.
5201.101 General.
5201.102 Designation of separate agency components.
5201.103 Fundraising activities.
5201.104 Additional rules for Office of the Inspector General employees.
5201.105 Additional rules for Mine Safety and Health Administration 
          employees.

    Authority: 5 U.S.C. 301, 7301, 7353; 5 U.S.C. App. (Ethics in 
Government Act); 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; 5 CFR 
2635.105, 2635.203(a), 2635.403(a), 2635.803.

    Source: 61 FR 57284, Nov. 6, 1996, unless otherwise noted.



Sec.  5201.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Department of Labor (Department) and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635.



Sec.  5201.102  Designation of separate agency components.

    (a) Separate agency components of the Department of Labor. Pursuant 
to 5 CFR 2635.203(a), each of the ten components of the Department 
listed below is designated as an agency separate from each of the other 
nine listed components and, for employees of that component, as an 
agency distinct from the remainder of the Department. However, the 
components listed below are not deemed to be separate agencies for 
purposes of applying any provision of 5 CFR part 2635 or this part to 
employees of the remainder of the Department:
    (1) Benefits Review Board;
    (2) Employees Compensation Appeals Board;
    (3) Mine Safety and Health Administration (MSHA);
    (4) Veterans' Employment and Training Service;
    (5) Occupational Safety and Health Administration (OSHA);
    (6) Employee Benefits Security Administration (EBSA);
    (7) Bureau of International Labor Affairs;
    (8) Bureau of Labor Statistics;
    (9) Employment and Training Administration (ETA); and
    (10) Employment Standards Administration (ESA).
    (b) Separate agency subcomponents of ESA. Pursuant to 5 CFR 
2635.203(a), each of the four subcomponents of the Employment Standards 
Administration (ESA) listed in this paragraph is designated as an agency 
separate from each of the other three listed components and, for 
employees of that subcomponent, as an agency distinct from the remainder 
of ESA. However, the components listed in this paragraph are not deemed 
to be separate agencies for purposes of applying any provision of 5 CFR 
part 2635 or this part to employees of the remainder of ESA:
    (1) Wage and Hour Division;
    (2) Office of Federal Contract Compliance Programs;
    (3) Office of Workers Compensation Programs; and
    (4) Office of Labor-Management Standards.
    (c) Definitions--(1) Remainder of the Department means employees in 
the Office of the Secretary and any other employee of the Department not 
in one of the 10 components designated as separate agencies in paragraph 
(a) of this section.
    (2) Remainder of ESA means employees in the Office of the Assistant 
Secretary for Employment Standards and any other ESA employee not in one 
of the four subcomponents designated as separate agencies in paragraph 
(b) of this section.
    (d) Applicability of separate agency designations. The designations 
in paragraphs (a) and (b) of this section identify an employee's 
``agency'' for purposes of:
    (1) Determining when a person is a prohibited source within the 
meaning of 5 CFR 2635.203(d) for purposes of applying the regulations at 
subpart B of 5 CFR part 2635 governing gifts from outside sources;

[[Page 860]]

    (2) Determining whether teaching, speaking or writing relates to the 
employee's official duties within the meaning of 5 CFR 
2635.807(a)(2)(i); and
    (3) Determining when a person is a prohibited source for purposes of 
applying the regulations at 5 CFR 2635.808(c) governing fundraising in a 
personal capacity.

    Example 1: An employee of the Mine Safety and Health Administration 
attends a Saturday football game together with an employee of the Office 
of the Solicitor. By coincidence, they are seated next to a contract 
consultant to the Employment and Training Administration. They talk 
about the game and describe their jobs and personal interests to their 
new seat-mate. The consultant states that he and his wife will not be 
able to attend next week's game and would like to give their very 
expensive tickets to people who will really enjoy them. The MSHA 
employee may accept the ticket. MSHA is designated as a separate agency 
under Sec.  5201.102, and the ETA contractor is not a prohibited source 
of gifts for MSHA employees. The contractor is not regulated by and has 
no business dealings with MSHA. The Solicitor's Office employee may not 
accept the gift. The ETA contractor is a prohibited source for 
Solicitor's Office employees because the Solicitor's Office is a part of 
the ``Remainder of the Department of Labor.'' Any source which is 
prohibited for any component of the Department of Labor is a prohibited 
source for employees in the ``Remainder.''

[61 FR 57284, Nov. 6, 1996, as amended at 68 FR 16398, Apr. 3, 2003]



Sec.  5201.103  Fundraising activities.

    Notwithstanding 5 CFR 2635.808(c)(1)(i), an employee of any separate 
agency component listed in this section may, in a personal capacity, 
personally solicit funds from a person who is a prohibited source if 
person is a prohibited source for employees of the component only under 
5 CFR 2635.203(d)(3) because the person conducts activities regulated by 
the component:
    (a) The Wage and Hour Division;
    (b) The Office of Federal Contract Compliance Programs;
    (c) The Remainder of the Employment Standards Administration, as 
defined in Sec.  5201.102(c);
    (d) Occupational Safety and Health Administration;
    (e) Employee Benefits Security Administration;
    (f) Veterans' Employment and Training Service; and
    (g) The Remainder of the Department of Labor, as defined in Sec.  
5201.102(c).

    Example 1: A training official in the Mine Safety and Health 
Administration is president of the local branch of her college alumni 
association. The association is seeking used computers from local 
businesses to upgrade the college's language lab. The employee may not 
seek a contribution from the vice president of a mining company which is 
regulated by MSHA. Even though the mining company is not currently under 
investigation, it is a prohibited source for the employment because it 
is subject to MSHA regulation and MSHA is not one of the agency 
components designated as separate for the purpose of fundraising in a 
personal capacity.
    Example 2: A typist in the Employee Benefits Security Administration 
raises money for a local homeless shelter during his off-duty hours. He 
may seek a contribution from a firm that is regulated by EBSA under the 
Employee Retirement Income Security Act but may not seek contributions 
from one that he knows is currently under investigation for a violation 
of the Act. While firms regulated by an agency would ordinarily be 
prohibited sources for purposes of an employee's fundraising in a 
personal capacity, Sec.  5201.103 provides that employees of EBSA and 
the other separate agency components listed in that section may seek 
charitable contributions from an entity that is a prohibited source only 
because its activities are subject to regulation by that separate agency 
component. On the other hand, the employee may not engage in fundraising 
from a person who he knows is a prohibited source for any other reason, 
such as an ongoing enforcement action.
    Example 3: An employee of the Employment and Training Administration 
may seek charitable contributions from a firm currently under 
investigation by the Occupational Safety and Health Administration 
(OSHA). ETA does not regulate this firm and has had no dealings or 
business with it of any kind. Since ETA has been designated as a 
separate agency under Sec.  5201.102, ETA employees need only consider 
their own official duties and activities and those of ETA in determining 
whether a person is a prohibited source for purposes of their 
fundraising in a personal capacity. The fact that a person may be a 
prohibited source of direct and indirect gifts for OSHA employees is not 
relevant in this instance.

[61 FR 57284, Nov. 6, 1996, as amended at 68 FR 16398, Apr. 3, 2003]

[[Page 861]]



Sec.  5201.104  Additional rules for Office of the Inspector General employees.

    The rules in this section apply to employees of the Office of the 
Inspector General (OIG) and are in addition to Sec. Sec.  5201.101, 
5201.102, and 5201.103.
    (a) Prior approval for outside employment. (1) Before engaging in 
any outside employment, an OIG employee must obtain the written approval 
of the Inspector General or the Inspector General's designee.
    (2) Submission of requests for approval. (i) Requests for approval 
shall be submitted in writing to the Inspector General or the Inspector 
General's designee. Such requests shall include, at a minimum, the 
following:
    (A) The employee's name and position title;
    (B) The name and address of the person, group, or organization for 
whom the employee proposes to engage in outside employment; and
    (C) A description of the proposed outside employment, including the 
duties and services to be performed while engaged in the outside 
employment, and the approximate dates of the outside employment.
    (ii) Together with the employee's request for approval, the employee 
shall provide a certification that:
    (A) The outside employment will not depend in any way on nonpublic 
information, as defined at 5 CFR 2635.703(b);
    (B) No official duty time or Government property, resources, or 
facilities not available to the general public will be used in 
connection with the outside employment; and
    (C) The employee has read and is familiar with the Standards of 
Ethical Conduct for Employees of the Executive Branch (5 CFR part 2635), 
including subpart H. (``Outside Activities''), and the Department's 
supplemental standards of ethical conduct set forth in this part.
    (iii) Upon a significant change in the nature or scope of the 
outside employment or in the employee's official position, the employee 
shall submit a revised request for approval.
    (3) Standard for approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635 and this part.
    (4) Definitions. For purposes of this section, ``employment'' means 
any form of non-Federal employment or any business relationship 
involving the provision of personal services by the employee. It 
includes but is not limited to personal services as an officer, 
director, employee, agent, attorney, consultant, contractor, general 
partner, or trustee.



Sec.  5201.105  Additional rules for Mine Safety and Health Administration 
employees.

    The rules in this section apply to employees of the Mine Safety and 
Health Administration (MSHA) and are in addition to Sec. Sec.  5201.101, 
5201.102, and 5201.103.
    (a) Prohibited financial interests. Employees in the MSHA and their 
spouses and minor children are prohibited from having any financial 
interests (including compensated employment) in any company or other 
person engaged in mining activities subject to the Federal Mine Safety 
and Health Act of 1977 (Mine Safety and Health Act), 30 U.S.C. 801 et 
seq. A company or other person shall be deemed to be engaged in such 
mining activities if it owns 50 percent or more of the voting securities 
of another company or other person engaged in such mining activities. A 
company or other person shall not be deemed to be engaged in such mining 
activities solely because it is controlled by a company or other person 
which does engage in such activities.
    (b) Exceptions. (1) Nothing in this section prohibits an employee or 
the spouse or minor child of an employee from acquiring, owning or 
controlling an interest in a publicly traded or publicly available 
investment fund provided that, upon initial or subsequent investment by 
the employee (excluding ordinary dividend reinvestment), the fund does 
not have invested, or does not indicate in its prospectus the intent to 
invest, more than 30 percent of its assets in the securities of a 
company or other person engaged in mining activities subject to the Mine 
Safety and Health Act, and the employee, spouse, or minor child neither 
exercises control nor has the ability to exercise

[[Page 862]]

control over the financial interests held in the fund.
    (2) Nothing in this section prohibits an employee or the spouse or 
minor child of an employee from having a financial interest in a pension 
administered by, or which invests in, a company or other person engaged 
in mining activities subject to the Mine Safety and Health Act.

    Example: A mine inspector who was a former employee of mining 
company X could continue to participate in mine company X's pension plan 
without violating this section. However, he would have to disclose the 
interest on his financial disclosure report. Additionally, the inspector 
should not inspect or otherwise take official action on a matter 
affecting mine company X without checking with his ethics advisor to 
ensure that performance of his official duties would not violate the 
conflict of interest statute (18 U.S.C. 208) or any other ethics 
provisions.

    (c) Waiver. (1) The Assistant Secretary of labor for Mine Safety and 
Health or the Assistant Secretary's designee may grant an employee a 
written waiver from the prohibitions contained in paragraph (a) of this 
section, based on a determination that the waiver is not inconsistent 
with 5 CFR part 2635 or otherwise prohibited by law and that, under the 
particular circumstances, application of the prohibition is not 
necessary to avoid the appearance of misuse of position or loss of 
impartiality, or to ensure confidence in the impartiality and 
objectivity with which Mine Safety and Health Administration programs 
are administered.
    (2) The Assistant Secretary or the designee shall grant a waiver 
from the prohibitions in paragraph (a) of this section regarding spouses 
and minor children unless the Assistant Secretary or the designee 
determines that the covered relationship or interest is likely to be 
inconsistent with 5 CFR part 2635 or is otherwise prohibited by law.
    (3) A waiver under this section may be accompanied by appropriate 
conditions, such as requiring execution of a written statement of 
disqualification. A waiver may be withdrawn if it is later determined 
that such waiver does not meet the requirements for the granting of 
waivers under this paragraph. Notwithstanding the grant of any waiver, a 
covered employee remains subject to the disqualification requirements of 
5 CFR 2635.402 and 2635.502.
    (4) Factors which may be considered in connection with the granting 
or denial of waivers include the nature and extent of the financial 
interest, and the official position and duties of the employee.
    (d) Pre-existing interests. Notwithstanding paragraph (a) of this 
section, an employee of the Mine Safety and Health Administration, and a 
spouse or minor child of such an employee, may retain financial 
interests otherwise prohibited by paragraph (a) of this section which 
were approved in writing under procedures in effect before the effective 
date of this section, unless the approval is withdrawn, subject to the 
standards applicable to the withdrawal of waivers under paragraph (c) of 
this section.

                       PARTS 5202	5299 [RESERVED]

[[Page 863]]



               CHAPTER XLIII--NATIONAL SCIENCE FOUNDATION




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Part                                                                Page
5300

[Reserved]

5301            Supplemental standards of ethical conduct 
                    for employees of the National Science 
                    Foundation..............................         865
5302-5399

 [Reserved]

[[Page 865]]

                          PART 5300 [RESERVED]



PART 5301_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL SCIENCE FOUNDATION--Table of Contents



Sec.
5301.101 General.
5301.102 Participation in proposals and awards.
5301.103 Outside employment and activities.
5301.104 Participation in NSF-supported conferences.
5301.105 Restrictions applicable to Members of the National Science 
          Board.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 42 U.S.C. 1870(a); 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; 5 
CFR 2635.105, 2635.502, 2635.802(a), 2635.803.

    Source: 61 FR 59818, Nov. 25, 1996, unless otherwise noted.



Sec.  5301.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to employees of the National Science Foundation (NSF), 
including Members of the National Science Board. They supplement the 
Standards of Ethical Conduct for Employees of the Executive Branch 
contained in 5 CFR part 2635.
    (b) Definitions. For purposes of this part, unless a provision 
plainly indicates otherwise:
    (1) Award means any grant, contract, cooperative agreement, loan, or 
other arrangement made by the Government.
    (2) Employee has the meaning set forth in 5 CFR 2635.102(h), except 
that, for purposes of this part, it shall not include a special 
Government employee.
    (3) Institution means any university, college, business firm, 
research institute, professional society, or other organization. It 
includes all parts of a university or college, including all 
institutions in a multi-institution State or city system. It includes 
any university consortium or joint corporation, but not the individual 
universities that belong to such a consortium. Those universities shall 
be considered separate institutions for purposes of this part.
    (4) Proposal means an application for an award and includes a bid.



Sec.  5301.102  Participation in proposals and awards.

    (a) Participation in proposals and awards. (1) For the purpose of 
determining whether an employee or a special Government employee, other 
than a Member of the National Science Board, should participate as part 
of his official duties in a proposal or award, the affiliations and 
relationships listed in paragraph (a)(3) of this section shall be 
considered additional ``covered relationships'' for purposes of applying 
5 CFR 2635.502. Except as provided in paragraph (a)(2) of this section, 
they shall be treated as disqualifying to the same extent as the covered 
relationships listed in 5 CFR 2635.502(b)(1).
    (2) Where an affiliation or relationship is listed in paragraph 
(a)(3) of this section as ``automatically disqualifying,'' an employee 
shall not participate in a proposal or award in which the institution or 
other person with whom the employee has a covered relationship is or 
represents a party unless participation is authorized in accordance with 
5 CFR 2635.502(d) by the agency designee, with the concurrence of an 
ethics counselor in the Office of the General Counsel.
    (3) An employee has a covered relationship, within the meaning of 5 
CFR 2635.502(b)(1), with:
    (i) An institution with which the employee is affiliated through:
    (A) Membership on a visiting committee or similar body at the 
institution. The relationship is automatically disqualifying where the 
particular department, school, or faculty that the visiting committee or 
similar body advises originated the proposal or where a proposal from 
the department, school, or faculty formed the basis for the award;
    (B) Current enrollment of the employee or a member of the employee's 
household as a student;
    (C) Receipt and retention of an honorarium or other form of 
compensation, award, or off-duty travel payment from the institution 
within the last twelve months. The relationship is automatically 
disqualifying, unless the payment

[[Page 866]]

or award was received before beginning Government service; and
    (ii) A person who is an investigator or project director on or who 
otherwise is identified in a proposal as a party to the proposal or 
award and with whom the employee has:
    (A) A family relationship as sibling, parent, spouse, or child. Any 
such relationship is automatically disqualifying;
    (B) Associated, in the past or currently, as thesis advisor or 
thesis student;
    (C) Collaborated on a project, book, article, report, or paper 
within the last 48 months; or
    (D) Co-edited a journal, compendium, or conference proceedings 
within the last 24 months.
    (b) Reporting involvement of prospective, current, or recent 
employees. (1) When an employee who is participating in a proposal or 
award becomes aware that a prospective, current, or recent NSF employee 
or current National Science Board member is or is likely to become a 
member of the research group or project staff under that proposal or 
award, the employee shall bring that circumstance to the attention of an 
agency designee. For purposes of this paragraph:
    (i) A ``recent NSF employee'' is any former NSF employee who left 
the NSF within the year before submission of the proposal at issue or on 
which the award was based.
    (ii) A ``prospective NSF employee'' is any person being recruited by 
an NSF official for a specific opening and from whom the official has 
received an indication of mutual interest. Such a person is a 
``prospective NSF employee'' even though those recruiting have not 
extended an offer and even though the person might not accept an offer 
if it were extended.
    (2) The agency designee shall review the circumstances to determine 
what action, if any, should be taken to assure that the proposal or 
award is administered impartially and otherwise in compliance with 
applicable laws and regulations, including this part, 5 CFR part 2635, 
18 U.S.C. 207 and 208, and 45 CFR part 680.



Sec.  5301.103  Outside employment and activities.

    (a) Prohibited outside employment and activities. (1) An NSF 
employee may not receive, directly or indirectly, any salary, consulting 
fee, honorarium, or other form of compensation for services, or 
reimbursement of expenses, from an NSF award.
    (2) An NSF employee may not serve as principal investigator or 
project director under an NSF award.
    (3) An NSF employee may not receive, directly or indirectly, any 
honorarium or any other form of compensation, or reimbursement of 
expenses from anyone, other than the United States, for participating in 
an event supported by NSF funds.
    (b) Prior approval of outside employment and activities. (1) An 
employee shall obtain written approval from an agency designee before:
    (i) Engaging in compensated outside employment with any person or 
institution (including any for-profit, non-profit, or governmental 
organization) which does business or may reasonably be expected to do 
business with the NSF. For these purposes, ``employment'' means any form 
of non-Federal employment or business relationship involving the 
provision of personal services by the employee. It includes, but is not 
limited to, personal services as an officer, director, employee, agent, 
attorney, consultant, contractor, general partner, trustee, teacher, or 
speaker. It includes writing when done under an arrangement for 
publication of the written product; or
    (ii) Serving, with or without compensation, on a visiting committee 
with any institution that does business or may reasonably be expected to 
do business with NSF.
    (2) In addition to any prior approval required in paragraph (b)(1) 
of this section, an employee shall obtain prior written approval:
    (i) From an ethics counselor in the Office of the General Counsel 
before participating, with or without compensation, as a policymaking 
officer of any research or educational institution or any scientific 
society or professional association; and
    (ii) From his Assistant Director or Office head before serving in a 
personal

[[Page 867]]

capacity as an organizer, director, proceedings editor, or session 
chairperson for a conference, workshop, or similar event supported by 
NSF funds, or before presenting a paper at such an event.
    (3) The approvals required by paragraphs (b)(1) and (b)(2) of this 
section shall be granted only upon a determination by the appropriate 
NSF official that the outside employment or activity is not expected to 
involve conduct prohibited by statute or Federal regulations, including 
5 CFR part 2635 and this part.



Sec.  5301.104  Participation in NSF-supported conferences.

    An NSF employee may participate in conferences, workshops, and 
similar events supported by NSF funds provided that:
    (a) Where the employee's participation is undertaken in a personal 
capacity, his participation does not violate the restrictions on outside 
employment and activities of Sec.  5301.103(a), and the approval 
requirements of Sec.  5301.103(b) have been met.
    (b) Where the employee's participation is undertaken as part of his 
official duties as an NSF employee:
    (1) The employee shall obtain prior written approval from his 
Assistant Director or Office head before serving as an organizer, 
director, proceedings editor, or session chairperson for a conference, 
workshop, or similar event sponsored by NSF funds, or before presenting 
a paper at such an event. However, prior approval is not required where 
the primary purpose of the event is to plan, assess, or publicize NSF 
programs or needs, or where the subject of the paper or session to be 
presented focuses on NSF programs or needs.
    (2) The approval required by paragraph (b)(1) of this section shall 
be granted only upon a determination that the importance of the 
employee's participation outweighs any appearance of use of official 
position to enhance his personal credentials.



Sec.  5301.105  Restrictions applicable to Members of 
the National Science Board.

    (a) Participation in proposals and awards. (1) For the purpose of 
determining whether a Member of the National Science Board (Board) 
should participate as part of his official duties in a proposal or award 
coming before the Board or any of its committees, the affiliations and 
relationships listed in paragraph (a)(3) of this section shall be 
considered ``covered relationships'' for purposes of applying 5 CFR 
2635.502. Except as provided in paragraph (a)(2) of this section, they 
shall be treated as disqualifying to the same extent as the covered 
relationships listed in 5 CFR 2635.502(b)(1).
    (2) Where an affiliation or relationship is listed in paragraph 
(a)(3) of this section as ``automatically disqualifying,'' a Member of 
the National Science Board shall not participate in a proposal or award 
in which the institution or other person with whom the Member has a 
covered relationship is or represents a party, unless participation is 
authorized in accordance with 5 CFR 2635.502(d) by the Chairman of the 
National Science Board or by the Designated Agency Ethics Official.
    (3) A Member of the National Science Board has a covered 
relationship, within the meaning of 5 CFR 2635.502(b)(1), with:
    (i) An institution or other person with which the Member is 
affiliated through:
    (A) Membership on a visiting committee or similar body at the 
institution. The relationship is automatically disqualifying where the 
particular department, school, or faculty that the visiting committee or 
similar body advises originated the proposal or where a proposal from 
the department, school, or faculty formed the basis for the award; or
    (B) Current enrollment of the Member or a member of his household as 
a student; and
    (ii) A person who is an investigator or project director or who is 
otherwise identified in a proposal as a party to the proposal or award 
and with whom the Member has a family relationship as sibling, parent, 
spouse, or child. Any such relationship is automatically disqualifying.
    (b) Outside employment and activities. (1) A Member of the National 
Science

[[Page 868]]

Board shall not represent himself, herself, or any other person in 
negotiations or other dealings with an NSF official on any proposal, 
award, or other particular matter, as defined in 5 CFR 2635.402(b)(3).
    (2) A Member of the National Science Board may not receive 
compensation from any award made while serving on the Board. However, 
unless prohibited by law, an award may be charged, and a Member may be 
reimbursed, for actual expenses incurred by the Member in doing work 
supported by the award. If a Member was an investigator or consultant 
under an award before appointment to the Board, the award may be charged 
and the Member may continue to receive compensation to the extent 
established before the Member's nomination.

                       PARTS 5302	5399 [RESERVED]

[[Page 869]]



          CHAPTER XLV--DEPARTMENT OF HEALTH AND HUMAN SERVICES




  --------------------------------------------------------------------
Part                                                                Page
5500

[Reserved]

5501            Supplemental standards of ethical conduct 
                    for employees of the Department of 
                    Health and Human Services...............         871
5502            Supplemental financial disclosure 
                    requirements for employees of the 
                    Department of Health and Human Services.         886
5503-5599

 [Reserved]

[[Page 871]]

                          PART 5500 [RESERVED]



PART 5501_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES--Table of Contents



Sec.
5501.101 General.
5501.102 Designation of HHS components as separate agencies.
5501.103 Gifts from federally recognized Indian tribes or Alaska Native 
          villages or regional or village corporations.
5501.104 Prohibited financial interests applicable to employees of the 
          Food and Drug Administration.
5501.105 Exemption for otherwise disqualifying financial interests 
          derived from Indian or Alaska Native birthrights.
5501.106 Outside employment and other outside activities.
5501.107 Teaching, speaking and writing by special Government employees 
          in the Public Health Service.
5501.108 Exception to the prohibition against assisting in the 
          prosecution of claims against, or acting as an agent or 
          attorney before, the Government, applicable only to employees 
          assigned to federally recognized Indian tribes or Alaska 
          Native villages or regional or village corporations pursuant 
          to the Intergovernmental Personnel Act.
5501.109 Prohibited outside activities applicable to employees of the 
          National Institutes of Health.
5501.110 Prohibited financial interests applicable to senior employees 
          of the National Institutes of Health.
5501.111 Awards tendered to employees of the National Institutes of 
          Health.
5501.112 One-year disqualification of employees of the National 
          Institutes of Health from certain matters involving an award 
          donor.

    Authority: 5 U.S.C. 301, 7301, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 25 U.S.C. 450i(f); 42 U.S.C. 216; 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; 5 CFR 2635.105, 2635.203, 2635.403, 
2635.802, 2635.803.

    Source: 61 FR 39763, July 30, 1996, unless otherwise noted.



Sec.  5501.101  General.

    (a) Purpose. The regulations in this part apply to employees of the 
Department of Health and Human Services (HHS) and supplement the 
Standards of Ethical Conduct for Employees of the Executive Branch 
contained in 5 CFR part 2635. In addition to 5 CFR part 2635 and this 
part, employees are required to comply with implementing guidance and 
procedures issued by HHS components in accordance with 5 CFR 
2635.105(c). Employees are also subject to the executive branch-wide 
financial disclosure regulations at 5 CFR part 2634, the Employee 
Responsibilities and Conduct regulations at 5 CFR part 735, and the HHS 
regulations regarding conduct at 45 CFR part 73.
    (b) Applicability. The regulations in this part apply to individuals 
who are ``employees'' within the meaning of 5 CFR 2635.102(h). The 
regulations thus apply to special Government employees, except to the 
extent they are specifically excluded from certain provisions, and to 
uniformed service officers in the Public Health Service Commissioned 
Corps on active duty.
    (c) Definitions. Unless a term is otherwise defined in this part, 
the definitions set forth in 5 CFR parts 2635 and 2640 apply to terms in 
this part. In addition, for purposes of this part:
    (1) Federally recognized Indian tribe or Alaska Native village or 
regional or village corporation means any Indian tribe, band, nation, or 
other organized group or community, including any Alaska Native village 
or regional or village corporation as defined in or established pursuant 
to the Alaska Native Claims Settlement Act, 43 U.S.C. 1601 et seq., 
which is recognized as eligible for the special programs and services 
provided by the United States to Indians because of their status as 
Indians.
    (2) Significantly regulated organization means an organization for 
which the sales of products regulated by the Food and Drug 
Administration (FDA) constitute ten percent or more of annual gross 
sales in the organization's previous fiscal year; where an organization 
does not have a record of sales of FDA-regulated products, it will be 
deemed to be significantly regulated if its operations are predominately 
in fields regulated by FDA, or if its research, development, or other 
business activities are reasonably expected to

[[Page 872]]

result in the development of products that are regulated by FDA.

[61 FR 39763, July 30, 1996, as amended at 70 FR 5558, Feb. 3, 2005; 70 
FR 51568, Aug. 31, 2005]



Sec.  5501.102  Designation of HHS components as separate agencies.

    (a) Separate agency components of HHS. Pursuant to 5 CFR 
2635.203(a), each of the twelve components of HHS listed below is 
designated as an agency separate from each of the other eleven listed 
components and, for employees of that component, as an agency distinct 
from the remainder of HHS. However, the components listed below are not 
deemed to be separate agencies for purposes of applying any provision of 
5 CFR part 2635 or this part to employees of the remainder of HHS:
    (1) Administration on Aging;
    (2) Administration for Children and Families:
    (3) Agency for Healthcare Research and Quality;
    (4) Agency for Toxic Substances and Disease Registry;
    (5) Centers for Disease Control and Prevention;
    (6) Centers for Medicare and Medicaid Services;
    (7) Food and Drug Administration;
    (8) Health Resources and Services Administration;
    (9) Indian Health Service;
    (10) National Institutes of Health;
    (11) Program Support Center; and
    (12) Substance Abuse and Mental Health Services Administration.
    (b) Definitions--(1) Employee of a component includes, in addition 
to employees actually within a component, an employee of the Office of 
the General Counsel whose regularly assigned duties and responsibilities 
principally involve the provision of legal services to the relevant 
component with respect to substantive programmatic issues.
    (2) Remainder of HHS means employees in the Office of the Secretary 
and Staff Divisions, employees of the Office of the General Counsel with 
Department-wide responsibility, and any HHS employee not in one of the 
12 components designated as separate agencies in paragraph (a) of this 
section.
    (c) Applicability of separate agency designations. The designations 
in paragraph (a) of this section identify an employee's ``agency'' for 
purposes of:
    (1) Determining when a person is a prohibited source within the 
meaning of 5 CFR 2635.203(d) for purposes of applying:
    (i) The regulations at subpart B of 5 CFR part 2635 governing gifts 
from outside sources; and
    (ii) The regulations at Sec.  5501.106 requiring prior approval of 
outside employment and other outside activities; and
    (iii) The regulations at Sec.  5501.111 governing the receipt of 
awards by employees of the National Institutes of Health; and
    (2) Determining whether teaching, speaking or writing relates to the 
employee's official duties within the meaning of 5 CFR 
2635.807(a)(2)(i).

[61 FR 39763, July 30, 1996, as amended at 70 FR 5558, Feb. 3, 2005; 70 
FR 51568, Aug. 31, 2005]



Sec.  5501.103  Gifts from federally recognized Indian tribes 
or Alaska Native villages or regional or village corporations.

    (a) Tribal or Alaska Native gifts. In addition to the gifts which 
come within the exceptions set forth in 5 CFR 2635.204, and subject to 
all provisions of 5 CFR 2635.201 through 2635.205, an employee may 
accept unsolicited gifts of native artwork, crafts, or other items 
representative of traditional native culture from federally recognized 
Indian tribes or Alaska Native villages or regional or village 
corporations, provided that the aggregate market value of individual 
gifts received from any one tribe or village under the authority of this 
paragraph shall not exceed $200 in a calendar year.
    (b) Limitations on use of exception. If the donor is a tribe or 
village that has interests that may be substantially affected by the 
performance or nonperformance of an employee's official duties, the 
employee may accept the gifts authorized by paragraph (a) of this 
section only where there is a written finding by the agency designee 
that acceptance of the gift is in the agency's interest and will not 
violate any of the

[[Page 873]]

limitations on the use of exceptions contained in 5 CFR 2635.202(c).

[61 FR 39763, July 30, 1996, as amended at 70 FR 5558, Feb. 3, 2005]



Sec.  5501.104  Prohibited financial interests applicable to employees 
of the Food and Drug Administration.

    (a) General prohibition. Except as permitted by paragraph (b) of 
this section, no employee or spouse or minor child of an employee, other 
than a special Government employee or the spouse or minor child of a 
special Government employee, of the Food and Drug Administration shall 
have a financial interest in a significantly regulated organization.
    (b) Exceptions. Notwithstanding the prohibition in paragraph (a) of 
this section:
    (1) An employee or spouse or minor child of an employee may have a 
financial interest, such as a pension or other employee benefit, arising 
from employment with a significantly regulated organization.

    Note to paragraph (b)(1): FDA employees who file public or 
confidential financial disclosure reports pursuant to 5 CFR part 2634, 
as opposed to spouses and minor children of such employees, are 
generally prohibited under Sec.  5501.106(c)(3) from engaging in current 
employment with a significantly regulated organization.

    (2) An employee who is not required to file a public or confidential 
financial disclosure report pursuant to 5 CFR part 2634, or the spouse 
or minor child of such employee, may hold a financial interest in a 
significantly regulated organization if:
    (i) The total cost or value, measured at the time of acquisition, of 
the combined interests of the employee and the employee's spouse and 
minor children in the regulated organization is equal to or less than 
the de minimis exemption limit for matters involving parties established 
by 5 CFR 2640.202(a) or $15,000, whichever is greater (the phrase ``time 
of acquisition'' shall mean the date on which the employee actually 
acquired the financial interest--or on which the financial interest 
became imputed to the employee under 18 U.S.C. 208--whether by purchase, 
gift, bequest, marriage, or otherwise, except that with respect to a 
financial interest that was acquired prior to the employee's entrance on 
duty as an employee of the Food and Drug Administration, the ``time of 
acquisition'' shall be deemed to be the date on which the employee 
entered on duty);
    (ii) The holding, if it represents an equity interest, constitutes 
less than 1 percent of the total outstanding equity of the organization; 
and
    (iii) The total holdings in significantly regulated organizations 
account for less than 50 percent of the total value of the combined 
investment portfolios of the employee and the employee's spouse and 
minor children.
    (3) An employee or spouse or minor child of an employee may have an 
interest in a significantly regulated organization that constitutes any 
interest in a publicly traded or publicly available investment fund 
(e.g., a mutual fund), or a widely held pension or similar fund, which, 
in the literature it distributes to prospective and current investors or 
participants, does not indicate the objective or practice of 
concentrating its investments in significantly regulated organizations, 
if the employee neither exercises control nor has the ability to 
exercise control over the financial interests held in the fund.
    (4) In cases involving exceptional circumstances, the Commissioner 
or the Commissioner's designee may grant a written exception to permit 
an employee, or the spouse or minor child of an employee, to hold a 
financial interest in a significantly regulated organization based upon 
a determination that the application of the prohibition in paragraph (a) 
of this section is not necessary to ensure public confidence in the 
impartiality or objectivity with which HHS programs are administered or 
to avoid a violation of part 2635 of this title.

    Note to paragraph (b): With respect to any excepted financial 
interest, employees are reminded of their obligations under 5 CFR part 
2635, and specifically their obligation under subpart D of part 5501 to 
disqualify themselves from participating in any particular matter in 
which they, their spouses or minor children have a financial interest 
arising from publicly traded securities that exceeds the de minimis 
thresholds specified in the regulatory exemption at 5

[[Page 874]]

CFR 2640.202 or from non-publicly traded securities that are not covered 
by the regulatory exemption. Furthermore, the agency may prohibit or 
restrict an individual employee from acquiring or holding any financial 
interest or a class of financial interests based on the agency's 
determination that the interest creates a substantial conflict with the 
employee's duties, within the meaning of 5 CFR 2635.403.

    (c) Reporting and divestiture. For purposes of determining the 
divestiture period specified in 5 CFR 2635.403(d), as applied to 
financial interests prohibited under paragraph (a) of this section, the 
``date divestiture is first directed'' means the date on which the new 
entrant public or confidential financial disclosure report required by 
part 2634 of this title or any report required by Sec.  5502.106(c) of 
this chapter is due.

[61 FR 39763, July 30, 1996, as amended at 70 FR 5558, Feb. 3, 2005]



Sec.  5501.105  Exemption for otherwise disqualifying financial interests 
derived from Indian or Alaska Native birthrights.

    (a) Under 18 U.S.C. 208(b)(4), an employee who otherwise would be 
disqualified may participate in a particular matter where the otherwise 
disqualifying financial interest that would be affected results solely 
from the interest of the employee, or the employee's spouse or minor 
child, in birthrights:
    (1) In an Indian tribe, band, nation, or other organized group or 
community, including any Alaska Native village corporation as defined in 
or established pursuant to the Alaska Native Claims Settlement Act, 
which is recognized as eligible for the special programs and services 
provided by the United States to Indians because of their status as 
Indians;
    (2) In an Indian allotment the title to which is held in trust by 
the United States or which is inalienable by the allottee without the 
consent of the United States; or
    (3) In an Indian claims fund held in trust or administered by the 
United States.
    (b) The exemption described in paragraph (a) of this section applies 
only if the particular matter does not involve the Indian allotment or 
claims fund or the Indian tribe, band, nation, organized group or 
community, or Alaska Native village corporation as a specific party or 
parties.



Sec.  5501.106  Outside employment and other outside activities.

    (a) Applicability. This section does not apply to special Government 
employees.
    (b) Definitions. For purposes of this section:
    (1) Compensation has the meaning set forth in 5 CFR 
2635.807(a)(2)(iii).
    (2) Consultative services means the provision of personal services 
by an employee, including the rendering of advice or consultation, which 
requires advanced knowledge in a field of science or learning 
customarily acquired by a course of specialize instruction and study in 
an institution of higher education, hospital, or other similar facility.
    (3) Professional services means the provision of personal services 
by an employee, including the rendering of advice or consultation, which 
involves the skills of a profession as defined in 5 CFR 2636.305(b)(1).
    (c) Prohibited outside employment and activities--(1) Prohibited 
assistance in the preparation of grant applications or contract 
proposals. An employee shall not provide consultative or professional 
services, for compensation, to or on behalf of any other person to 
prepare, or assist in the preparation of, any grant application, 
contract proposal, program report, or other document intended for 
submission to HHS.
    (2) Prohibited employment in HHS-funded activities. An employee 
shall not, for compensation, engage in employment, as defined in 5 CFR 
2635.603(a), with respect to a particular activity funded by an HHS 
grant, contract, cooperative agreement, cooperative research and 
development agreement, or other funding mechanism authorized by statute.
    (3) Prohibited outside activities applicable to employees of the 
Food and Drug Administration. An employee of the Food and Drug 
Administration who is required to file a public or confidential 
financial disclosure report pursuant to 5 CFR part 2634 shall not:

[[Page 875]]

    (i) Engage in any self-employed business activity for which the sale 
or promotion of FDA-regulated products is expected to constitute ten 
percent or more of annual gross sales or revenues; or
    (ii) Engage in employment, as defined in 5 CFR 2635.603(a), whether 
or not for compensation, with a significantly regulated organization, as 
defined in Sec.  5501.101(c)(2), unless the employment meets either of 
the following exceptions:
    (A) The employment consists of the practice of medicine, dentistry, 
veterinary medicine, pharmacy, nursing, or similar practices, provided 
that the employment does not involve substantial unrelated non-
professional duties, such as personnel management, contracting and 
purchasing responsibilities (other than normal ``out-of-stock'' 
requisitioning), and does not involve employment by a medical product 
manufacturer in the conduct of biomedical research; or
    (B) The employment primarily involves manual or unskilled labor or 
utilizes talents, skills, or interests in areas unrelated to the 
substantive programmatic activities of the FDA, such as clerical work, 
retail sales, service industry jobs, building trades, maintenance, or 
similar services.
    (4) Prohibited outside practice of law applicable to attorneys in 
the Office of the General Counsel. (i) An employee who serves as an 
attorney in or under the supervision of the Office of the General 
Counsel or the Office of Counsel to the Inspector General shall not 
engage in any outside practice of law that might require the attorney 
to:
    (A) Assert a legal position that is or appears to be in conflict 
with the interests of the Department of Health and Human Services, the 
client to which the attorney owes a professional responsibility; or
    (B) Interpret any statute, regulation or rule administered or issued 
by the Department.
    (ii) Exceptions. Nothing in this section prevents an employee from:
    (A) Acting, with or without compensation, as an agent or attorney 
for, or otherwise representing, the employee's parents, spouse, child, 
or any person for whom, or for any estate for which, the employee is 
serving as guardian, executor, administrator, trustee, or other personal 
fiduciary to the extent permitted by 18 U.S.C. 203 and 205, or from 
providing advice or counsel to such persons or estate; or
    (B) Acting, without compensation, as an agent or attorney for, or 
otherwise representing, any person who is the subject of disciplinary, 
loyalty, or other personnel administration proceedings in connection 
with those proceedings to the extent permitted by 18 U.S.C. 205, or from 
providing uncompensated advice or counsel to such person; or
    (C) Giving testimony under oath or from making statements required 
to be made under penalty for perjury or contempt.
    (iii) Specific approval procedures. (A) The exceptions to 18 U.S.C. 
203 and 205 described in paragraph (c)(4)(ii)(A) of this section do not 
apply unless the employee obtained the approval of the Government 
official responsible for the appointment of the employee to a Federal 
position.
    (B) The exception to 18 U.S.C. 205 described in paragraph 
(c)(4)(ii)(B) of this section does not apply unless the employee has 
obtained the approval of a supervisory official who has authority to 
determine whether the employee's proposed representation of another 
person in a personnel administration matter is consistent with the 
faithful performance of the employee's duties.
    (d) Prior approval for outside employment and other outside 
activities--(1) General approval requirement. Except as provided in 
paragraph (d)(3) of this section, an employee shall obtain written 
approval prior to engaging, with or without compensation, in outside 
employment, including self-employed business activities, or other 
outside activities in which the employee seeks to:
    (i) Provide consultative or professional services, including service 
as an expert witness;
    (ii) Engage in teaching, speaking, writing, or editing that:
    (A) Relates to the employee's official duties within the meaning of 
5 CFR 2635.807(a)(2)(i)(B) through (E); or

[[Page 876]]

    (B) Would be undertaken as a result of an invitation to engage in 
the activity that was extended to the employee by a person or 
organization that is a prohibited source within the meaning of 5 CFR 
2635.203(d), as modified by the separate HHS component agency 
designations in Sec.  5501.102; or
    (iii) Provide services to a non-Federal entity as an officer, 
director, or board member, or as a member of a group, such as a planning 
commission, advisory council, editorial board, or scientific or 
technical advisory board or panel, which requires the provision of 
advice, counsel, or consultation.
    (2) Additional approval requirement for employees of the Food and 
Drug Administration and the National Institutes of Health. In addition 
to the general approval requirements set forth in paragraph (d)(1) of 
this section, an employee of the Food and Drug Administration or the 
National Institutes of Health shall obtain written approval prior to 
engaging, with or without compensation, in any outside employment, as 
defined in 5 CFR 2635.603(a), with, or any self-employed business 
activity involving the sale or promotion of products or services of, any 
person or organization that is a prohibited source of the employee's 
component agency.
    (3) Exceptions to prior approval requirements. (i) Notwithstanding 
the requirements of paragraphs (d)(1) and (d)(2) of this section, prior 
approval is not required for participation in the activities of a 
political, religious, social, fraternal, or recreational organization 
unless:
    (A) The activity or the position held in the organization requires 
the provision of professional services within the meaning of paragraph 
(b)(3) of this section; or
    (B) The activity is performed for compensation other than the 
reimbursement of expenses.
    (ii) Notwithstanding the requirements of paragraphs (d)(1) and 
(d)(2) of this section, prior approval is not required for participation 
in an employment or other outside activity that has been exempted under 
paragraph (d)(7) of this section.
    (4) Submission of requests for approval. (i) An employee seeking to 
engage in any of the activities for which advance approval is required 
shall make a written request for approval a reasonable time before 
beginning the activity. This request shall be directed to the employee's 
supervisor. The supervisor shall submit the request and a statement 
addressing the extent to which the employee's duties are related to the 
proposed outside activity to an agency designee, who shall make a final 
determination with respect to the request.
    (ii) All requests for prior approval shall include the following 
information:
    (A) The employee's name, contact information, organizational 
location, occupational title, grade, step, salary, appointment type, and 
financial disclosure filing status;
    (B) The nature of the proposed outside employment or other outside 
activity, including a full description of the specific duties or 
services to be performed;
    (C) A description of the employee's official duties that relate to 
the proposed activity;
    (D) A description of how the employee's official duties will affect 
the interests of the person for whom or organization with which the 
proposed activity will be performed;
    (E) The name and address of the person for whom or organization with 
which the work or activity will be done, including the location where 
the services will be performed;
    (F) A statement as to whether travel is involved and, if so, whether 
the transportation, lodging, meals, or per diem will be at the 
employee's expense or provided by the person for whom or organization 
with which the work or activity will be done, and a description of the 
arrangements and an estimate of the costs of items to be furnished or 
reimbursed by the outside entity;
    (G) The estimated total time that will be devoted to the activity. 
If the proposed outside activity is to be performed on a continuing 
basis, a statement of the estimated number of hours per year; for other 
employment, a statement of the anticipated beginning and ending date;
    (H) A statement as to whether the work can be performed entirely 
outside

[[Page 877]]

of the employee's regular duty hours and, if not, the estimated number 
of hours and type of leave that will be required;
    (I) The method or basis of any compensation to be received (e.g., 
fee, honorarium, retainer, salary, advance, royalty, stock, stock 
options, non-travel related expenses, or other form of remuneration 
tendered in cash or in-kind in connection with the proposed activity) 
from the person for whom or organization with which the work or activity 
will be done;
    (J) The amount of any compensation to be received from the person 
for whom or organization with which the work or activity will be done;
    (K) The amount and date of any compensation received, or due for 
services performed, within the current and previous six calendar years 
immediately preceding the submission of the request for approval from 
the person for whom or organization with which the work or activity will 
be done (including any amount received or due from an agent, affiliate, 
parent, subsidiary, or predecessor of the proposed payor);
    (L) A statement as to whether the compensation is derived from an 
HHS grant, contract, cooperative agreement, or other source of HHS 
funding or attributed to services related to an activity funded by HHS, 
regardless of the specific source of the compensation;
    (M) For activities involving the provision of consultative or 
professional services, a statement indicating whether the client, 
employer, or other person on whose behalf the services are performed is 
receiving, or intends to seek, an HHS grant, contract, cooperative 
agreement, or other funding relationship;
    (N) For activities involving teaching, speaking, or writing, a 
syllabus, outline, summary, synopsis, draft or similar description of 
the content and subject matter involved in the course, speech, or 
written product (including, if available, a copy of the text of any 
speech) and the proposed text of any disclaimer required by 5 CFR 
2635.807(b)(2) or by the instructions or manual issuances authorized 
under paragraph (d)(6) of this section; and
    (O) Such other relevant information that the designated agency 
ethics official or, with the concurrence of the designated agency ethics 
official, each of the separate agency components of HHS listed in Sec.  
5501.102(a) determines is necessary or appropriate in order to evaluate 
whether a proposed activity is likely to involve conduct prohibited by 
statute or Federal regulations, including 5 CFR part 2635 and this part.
    (5) Standard for approval. Approval shall be granted only upon a 
determination that the outside employment or other outside activity is 
not expected to involve conduct prohibited by statute or Federal 
regulation, including 5 CFR part 2635 and this part.

    Note: The granting of approval for an outside activity does not 
relieve the employee of the obligation to abide by all applicable laws 
governing employee conduct nor does approval constitute a sanction of 
any violation. Approval involves an assessment that the general activity 
as described on the submission does not appear likely to violate any 
criminal statutes or other ethics rules. Employees are reminded that 
during the course of an otherwise approvable activity, situations may 
arise, or actions may be contemplated, that, nevertheless, pose ethical 
concerns.
    Example 1: A clerical employee with a degree in library science 
volunteers to work on the acquisitions committee at a local public 
library. Serving on a panel that renders advice to a non-Federal entity 
is subject to prior approval. Because recommending books for the library 
collection normally would not pose a conflict with the typing duties 
assigned the employee, the request would be approved.
    Example 2: While serving on the library acquisitions committee, the 
clerical employee in the preceding example is asked to help the library 
business office locate a missing book order. Shipment of the order is 
delayed because the publisher has declared bankruptcy and its assets, 
including inventory in the warehouse, have been frozen to satisfy the 
claims of the Internal Revenue Service and other creditors. The employee 
may not contact the Federal bankruptcy trustee to seek, on behalf of the 
public library, the release of the books. Even though the employee's 
service on the acquisitions committee had been approved, a criminal 
statute, 18 U.S.C. 205, would preclude any representation by a Federal 
employee of an outside entity before a Federal court or agency with 
respect to a matter in which the United States is a party or has a 
direct and substantial interest.


[[Page 878]]


    (6) Duration of approval. Approval shall be effective for a period 
not to exceed one year from the date of approval. Upon a significant 
change in the nature of the outside activity or in the employee's 
official position or duties, the employee shall submit a revised request 
for approval using the procedure in paragraph (d)(4) of this section. If 
the outside activity is anticipated to exceed one year from the date of 
the most recent approval, the employee shall renew the request for 
approval no later than thirty days prior to the expiration of the period 
authorized.
    (7) Responsibilities of the designated agency ethics official and 
component agencies. (i) The designated agency ethics official or, with 
the concurrence of the designated agency ethics official, each of the 
separate agency components of HHS listed in Sec.  5501.102 may issue an 
instruction or manual issuance exempting categories of employment or 
other outside activities from a requirement of prior written approval 
based on a determination that the employment or activities within those 
categories would generally be approved and are not likely to involve 
conduct prohibited by statute or Federal regulations, including 5 CFR 
part 2635 and this part.
    (ii) HHS components may specify internal procedures governing the 
submission of prior approval requests and designate appropriate 
officials to act on such requests. The instructions or manual issuances 
may include examples of outside employment and other outside activities 
that are permissible or impermissible consistent with 5 CFR part 2635 
and this part. With respect to teaching, speaking, writing, or editing 
activities, the instructions or manual issuances may specify 
preclearance procedures and/or require disclaimers indicating that the 
views expressed do not necessarily represent the views of the agency or 
the United States.
    (iii) The officials within the respective HHS components who are 
responsible for the administrative aspects of these regulations and the 
maintenance of records shall make provisions for the filing and 
retention of requests for approval of outside employment and other 
outside activities and copies of the notification of approval or 
disapproval.
    (e) Waivers. The designated agency ethics official may grant a 
written waiver, for an individual or class of similarly situated 
individuals, from any prohibited outside activity provision in this 
section or in Sec.  5501.109 based on a determination that the waiver is 
not inconsistent with part 2635 of this title or otherwise prohibited by 
law and that, under the particular circumstances, application of the 
prohibition is not necessary to avoid the appearance of misuse of 
position or loss of impartiality or otherwise to ensure confidence in 
the impartiality and objectivity with which agency programs are 
administered. An individual or class waiver under this paragraph may 
impose appropriate conditions, such as requiring execution of a written 
disqualification.

[61 FR 39763, July 30, 1996, as amended at 70 FR 5558, Feb. 3, 2005; 70 
FR 51568, Aug. 31, 2005]



Sec.  5501.107  Teaching, speaking and writing by special Government employees 
in the Public Health Service.

    (a) Applicability. This section applies to special Government 
employees in the Public Health Service who otherwise are prohibited from 
accepting compensation for teaching, speaking or writing that is related 
to their official duties, within the meaning of 5 CFR 
2635.807(a)(2)(i)(C), because the invitation or the offer of 
compensation for the activity was extended at a time when the special 
Government employee was assigned to perform official duties that may 
substantially affect the interests of the inviter or offeror.
    (b) Permissible compensation. A special Government employee may 
accept compensation for teaching, speaking or writing in circumstances 
described in paragraph (a) of this section only where the special 
Government employee recuses from the official assignment that may 
substantially affect the interests of the person who extended the 
invitation to engage in the activity or the offer of compensation.

[[Page 879]]



Sec.  5501.108  Exception to the prohibition against assisting 
in the prosecution of claims against, or acting as an agent 
or attorney before, the Government, applicable only to employees assigned to 
federally recognized Indian tribes or Alaska Native villages or regional 
or village corporations pursuant to the Intergovernmental Personnel Act.

    (a) 18 U.S.C. 205. Section 205 of title 18 of the United States Code 
prohibits an employee, whether or not for compensation, from acting as 
an agent or attorney for anyone in a claim against the United States, or 
from acting in such capacity on behalf of another 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.
    (b) Exception applicable only to employees assigned to federally 
recognized Indian tribes or Alaska Native villages or regional or 
village corporations pursuant to the Intergovernmental Personnel Act. 
Notwithstanding the provisions of 18 U.S.C. 205, the Indian Self-
Determination Act (25 U.S.C. 450i(f)) authorizes Federal employees 
detailed or assigned to Indian tribes or Alaska Native villages or 
regional or village corporations, pursuant to the Intergovernmental 
Personnel Act (5 U.S.C. 3372), to act as agents or attorneys for, or 
appear on behalf of, such tribes or Alaska Native villages or 
corporations in connection with any matter pending before any 
department, agency, court, or commission, in which the United States is 
a party or has a direct and substantial interest. Such employees must 
advise, in writing, the head of the agency, with which they are dealing 
on behalf of an Indian tribe or Alaska Native village or corporation, of 
any personal and substantial involvement they may have had as an officer 
or employee of the United States in connection with the matter 
concerned.



Sec.  5501.109  Prohibited outside activities applicable to employees 
of the National Institutes of Health.

    (a) Applicability. This section does not apply to special Government 
employees.
    (b) Definitions. For purposes of this section:
    (1) Compensation has the meaning set forth in 5 CFR 
2635.807(a)(2)(iii).
    (2) Continuing professional education means a course, a program, a 
series of courses or programs, or other educational activity provided to 
members of a profession, as defined in 5 CFR 2636.305(b)(1), or academic 
discipline and designed principally to maintain or advance the skills 
and competence of practitioners in a field of specialized knowledge and 
to expand an appreciation and understanding of the professional 
responsibilities, fiduciary obligations, or ethical aspirations 
incumbent upon members of the group. For those members of a profession 
or academic discipline that does not subject its members to licensure or 
continuing education requirements, the term continuing professional 
education includes those educational activities that exemplify a purpose 
and content similar to those offered to or required of members of a 
licensed profession.
    (3) Data and safety monitoring board (DSMB) means a board, 
committee, or panel constituted in connection with an ongoing clinical 
study and comprised of individuals, other than the study sponsors, 
organizers, and investigators, who possess expertise in relevant 
specialties and disciplines, such as trial design, biostatistics, and 
bioethics, and who review accumulating safety and outcome data in order 
to ensure the continuing safety of the participating human subjects and 
of those yet to be recruited, and to assess the continuing validity and 
scientific merit of the investigation.
    (4) Educational activity provider means a supported research 
institution or a health care provider or insurer that presents Grand 
Rounds or offers accredited continuing professional education (or, in 
the case of a profession or academic discipline whose members are not 
subject to licensure and which does not have program accreditation 
requirements, an education program determined by the designated agency 
ethics official or his designee or, in consultation with the designated 
agency ethics official or his designee, the NIH Director or the NIH 
Director's designee

[[Page 880]]

to be substantially equivalent to an accredited continuing professional 
education program), but does not include a substantially affected 
organization.
    (5) Employment has the meaning specified in 5 CFR 2635.603(a).
    (6) Grand rounds means a regularly scheduled, interactive 
presentation or series of educational seminars that focus on clinical 
cases, recent biomedical or behavioral research results, or a review of 
scientific research methods and findings in a specific field, with 
supporting basic and clinical science information, that are conducted in 
an accredited medical school or an affiliated teaching hospital setting 
that provides practicing physicians, faculty, fellows, resident 
physician trainees, medical students, graduate students, and post-
doctoral fellows, as well as allied and associated health professionals, 
and other staff, an opportunity to evaluate outcomes of patient 
treatment decisions, a forum to discuss clinical decision making, and a 
means to impart updates in diagnosis, treatment, therapy, and research 
as indicated by the context of the cases presented.
    (7) Grant or scientific review committee means a board, committee, 
or panel of qualified experts assembled by an external grant-making 
entity or other funding institution for the purpose of making a funding 
decision, the members of which review, evaluate, rate, rank, or 
otherwise assess a proposed or ongoing project or program for which 
grant support is sought on the basis of various factors, such as 
scientific merit, feasibility, significance, approach, and originality 
(and scientific progress in any previous period of funding), and gauge 
the ability of the applicant(s), principal and associate investigators, 
and scientific team members to complete successfully the project or 
program, and then recommend to the grantor whether to fund or continue 
to fund a particular proposal or ongoing program.
    (8) Health care provider or insurer means a hospital, clinic, 
skilled nursing facility, rehabilitation facility, durable medical 
equipment supplier, home health agency, hospice program, health 
maintenance organization, managed care organization, or other provider 
of health care items and services as defined in sections 1877(h)(6) or 
1903(w)(7) of the Social Security Act (42 U.S.C. 1395nn(h)(6) or 
1396b(w)(7)) and any entity organized and licensed as a risk-bearing 
entity eligible to offer health insurance or health benefits coverage.
    (9) Scientific peer review is the evaluation of scientific research 
findings for competence, significance, and originality by qualified 
experts who research and submit work for publication in the same field 
and which provides systematized accountability for adherence to ethical 
guidelines commonly accepted within the relevant research community for 
disseminating scientific information.
    (10) Substantially affected organization means:
    (i) A biotechnology or pharmaceutical company; a medical device 
manufacturer; or a corporation, partnership, or other enterprise or 
entity significantly involved, directly or through subsidiaries, in the 
research, development, or manufacture of biotechnological, 
biostatistical, pharmaceutical, or medical devices, equipment, 
preparations, treatments, or products;
    (ii) Any organization a majority of whose members are described in 
paragraph (b)(10)(i) of this section; and
    (iii) Any other organization determined by the designated agency 
ethics official or, in consultation with the designated agency ethics 
official, by the NIH Director or the NIH Director's designee that is 
substantially affected by the programs, policies, or operations of the 
NIH.
    (11) Supported research institution means any educational 
institution or non-profit independent research institute that:
    (i) Is, or within the last year has been, an applicant for or 
recipient of an NIH grant, cooperative agreement, or research and 
development contract;
    (ii) Is, or within the last year has been, a proposer of or party to 
a cooperative research and development agreement (CRADA) with the NIH; 
or
    (iii) Any organization a majority of whose members are described in 
paragraphs (b)(11)(i) or (ii) of this section.

[[Page 881]]

    (12) Unrestricted educational grant means funds received by or 
available to an educational activity provider from another source that 
are granted without stipulated conditions for their use other than the 
limitation that the funds shall be used to advance an educational 
program of the grant recipient. For purposes of this section, an 
educational grant shall not be considered unrestricted if the funding 
source for a continuing professional education program directly or 
indirectly:
    (i) Selects or recommends the moderators, speakers, or presenters at 
the sponsored event;
    (ii) Independently provides additional funding to the moderators, 
speakers, or presenters in connection with the educational activity;
    (iii) Determines or recommends the audience composition;
    (iv) Specifies or recommends the topics to be addressed, or
    (v) Controls or recommends the planning, content, or implementation 
of the program in a manner inconsistent with guidelines established by a 
relevant professional association or accrediting organization that are 
designed to ensure that such activities are accurate, balanced, 
educational, free from commercial bias, nonpromotional, and independent 
of the influence of the funding source.
    (13) Unrestricted financial contribution means funds received by or 
available to a publisher, academic press, editorial board, or other 
entity affiliated with or operated by a supported research institution 
or a health care provider or insurer from another source that are 
provided without stipulated conditions for their use other than the 
limitation that the funds shall be used to advance peer-reviewed writing 
or editing by the funds recipient. For purposes of this section, a 
financial contribution shall not be considered unrestricted if the 
funding source for peer-reviewed writing or editing directly or 
indirectly:
    (i) Selects or recommends the author, reviewer, referee, or editor;
    (ii) Independently provides additional funding to the author, 
reviewer, referee, or editor in connection with the writing or editing 
activity;
    (iii) Determines or recommends the targeted audience of the writing 
or editing activity;
    (iv) Specifies or recommends the topics to be addressed, or
    (v) Controls or recommends the planning, content, or distribution of 
the written or edited product in a manner inconsistent with ethical 
guidelines commonly accepted within the relevant research community for 
disseminating scientific information which are designed to ensure that 
such writing or editing is accurate, unbiased, nonpromotional, 
transparent with respect to disclosure of potential conflicts, and 
independent of the influence of the funding source.
    (c) Prohibitions--(1) Prohibited outside activities with 
substantially affected organizations, supported research institutions, 
and health care providers or insurers. Except as permitted by paragraph 
(c)(3) of this section, an employee of the NIH shall not:
    (i) Engage in employment with a substantially affected organization, 
a supported research institution, or a health care provider or insurer;
    (ii) Teach, speak, write, or edit for compensation for any 
substantially affected organization, supported research institution, or 
health care provider or insurer; or
    (iii) Engage in any employment or self-employed business activity 
that involves the sale or promotion of products or services of a 
substantially affected organization or a health care provider or 
insurer, except for the purpose of commercializing invention rights 
obtained by the employee pursuant to Executive Order 10096, 15 U.S.C. 
3710d, or implementing regulations.
    (2) General exception. Nothing in paragraph (c)(1) of this section 
prevents an employee from engaging in employment with, or teaching, 
speaking, writing, or editing for, a political, religious, social, 
fraternal, or recreational organization.
    (3) Specific exceptions. Notwithstanding the prohibitions in 
paragraph (c)(1) of this section:
    (i) Teaching. An employee may engage in and accept compensation for:
    (A) Teaching a course requiring multiple presentations as permitted 
under 5 CFR 2635.807(a)(3); or

[[Page 882]]

    (B) Delivering a class lecture that is unrelated to the employee's 
official duties within the meaning of 5 CFR 2635.807 if the activity is 
performed as part of a regularly scheduled course offered under the 
established curriculum of an institution of higher education as defined 
at 20 U.S.C. 1001.
    (ii) Clinical, medical, or health-related professional practice. An 
employee may engage in and accept compensation for the outside practice 
of medicine, dentistry, pharmacy, nursing, or similar health-related 
professional practice that involves the personal provision of care, 
treatment, or other health-related professional services to or in 
connection with individual patients, provided that:
    (A) The provision of health-related professional services to such 
individuals is not part of any ongoing research project conducted or 
funded by the NIH;
    (B) The employee does not establish a private practice relationship 
with a current or recently discharged NIH patient or subject of an NIH-
conducted or NIH-funded clinical trial or protocol;
    (C) The employee does not personally refer private practice patients 
to the NIH; and
    (D) The professional practice does not involve substantial unrelated 
non-professional duties, such as personnel management, contracting and 
purchasing responsibilities (other than ``out-of-stock'' 
requisitioning), and does not involve employment by a medical product 
manufacturer in the conduct of biomedical research.
    (iii) Clerical, retail, service industry, building trades, 
maintenance, or similar services. An employee may engage in and accept 
compensation for any outside employment or self-employed business 
activity that primarily involves manual or unskilled labor or utilizes 
talents, skills, or interests in areas unrelated to the health and 
scientific research activities of the NIH, such as clerical work, retail 
sales, service industry jobs, building trades, maintenance, or similar 
services.
    (iv) Continuing professional education. An employee may engage in 
and accept compensation for a teaching, speaking, writing, or editing 
activity that is unrelated to the employee's official duties within the 
meaning of 5 CFR 2635.807 if the activity is performed as part of a 
continuing professional education program conducted by an educational 
activity provider. If a substantially affected organization provides 
financial support for a continuing professional education program 
conducted by an educational activity provider, this exception is 
inapplicable unless the substantially affected organization is involved 
only as the funding source for an unrestricted educational grant.
    (v) Authorship of writings subjected to scientific peer review or a 
substantially equivalent editorial review process. An employee may 
engage in and accept compensation for a writing or editing activity that 
is unrelated to the employee's official duties within the meaning of 5 
CFR 2635.807 if the resulting article, chapter, essay, report, text, or 
other writing is submitted to a publisher, academic press, editorial 
board, or other entity affiliated with or operated by a supported 
research institution or a health care provider or insurer for 
publication in a scientific journal, textbook, or similar publication 
that subjects manuscripts to scientific peer review or a substantially 
equivalent editorial review process. If a substantially affected 
organization funds the publishing activities of a supported research 
institution or a health care provider or insurer, this exception is 
inapplicable unless the substantially affected organization is involved 
only as an unrestricted financial contributor and exercises no editorial 
control.
    (vi) Data and safety monitoring boards. An employee may serve as a 
member of a data and safety monitoring board for a clinical study 
conducted by a supported research institution or health care provider or 
insurer, provided that:
    (A) The members of the DSMB are not selected or paid for their 
service by a substantially affected organization;
    (B) The clinical study is not funded under a grant, cooperative 
agreement, or research and development contract from, or conducted 
pursuant to a cooperative research and development agreement (CRADA) 
with, or aided under another funding mechanism by, the NIH; and

[[Page 883]]

    (C) If the service is performed for compensation, the service does 
not entail prohibited assistance in the preparation of documents 
intended for submission to HHS within the meaning of Sec.  
5501.106(c)(1), and the clinical study is not an HHS-funded activity 
described in Sec.  5501.106(c)(2).
    (vii) Grand rounds. An employee may engage in and accept 
compensation for a teaching, speaking, writing, or editing activity that 
is unrelated to the employee's official duties within the meaning of 5 
CFR 2635.807 if the activity is performed as part of a Grand Rounds 
program conducted by an accredited educational institution offering 
instruction in the life sciences, such as a medical school or school of 
public health, or by an affiliated teaching hospital, provided that:
    (A) The employee's presentation includes an interactive component, 
such as visiting patients or discussing individual clinical cases, or 
interacting for educational purposes with undergraduates, graduates, or 
post-graduate students and fellows, in addition to any lecture;
    (B) The audience is composed primarily of faculty and students or 
trainees registered in a biomedical or health-related program of 
studies; and
    (C) A substantially affected organization or a speakers' bureau 
affiliated with a substantially affected organization does not sponsor 
or underwrite the costs of the Grand Rounds program or the employee's 
presentation, except pursuant to an unrestricted educational grant.
    (viii) Grant or scientific review committee. An employee may serve 
on a grant or scientific review committee for a supported research 
institution or a health care provider or insurer, provided that:
    (A) The members of the grant or scientific review committee are not 
selected or paid for their service by a substantially affected 
organization;
    (B) The grant award or program in relation to which the 
recommendation of the grant or scientific review committee is sought is 
not funded under a grant, cooperative agreement, or research and 
development contract from, conducted pursuant to a cooperative research 
and development agreement (CRADA) with, or aided under another funding 
mechanism by, the NIH; and
    (C) If the service is performed for compensation, the service does 
not entail prohibited assistance in the preparation of documents 
intended for submission to HHS within the meaning of Sec.  
5501.106(c)(1), and the grant award or program in relation to which the 
recommendation of the grant or scientific review committee is sought is 
not an HHS-funded activity described in Sec.  5501.106(c)(2).

[70 FR 5560, Feb. 3, 2005, as amended at 70 FR 51569, Aug. 31, 2005]



Sec.  5501.110  Prohibited financial interests applicable to senior employees 
of the National Institutes of Health.

    (a) Applicability. This section does not apply to special Government 
employees or the spouse or minor children of a special Government 
employee.
    (b) Definitions. For purposes of this section:
    (1) Senior employee means the Director and the Deputy Director of 
the National Institutes of Health; members of the senior staff within 
the Office of the Director who report directly to the NIH Director; the 
Directors, the Deputy Directors, Scientific Directors, and Clinical 
Directors of each Institute and Center within NIH; Extramural Program 
Officials who report directly to an Institute or Center Director; and 
any employee of equivalent levels of decision-making responsibility who 
is designated as a senior employee by the designated agency ethics 
official or the NIH Director, in consultation with the designated agency 
ethics official.
    (2) Substantially affected organization has the meaning set forth in 
Sec.  5501.109(b)(10).
    (c) Prohibition applicable to senior employees. Except as permitted 
by paragraph (d) of this section, a senior employee or the spouse or 
minor child of such senior employee shall not have a financial interest 
in a substantially affected organization.
    (d) Exceptions for certain financial interests. Notwithstanding the 
prohibition in paragraph (c) of this section:
    (1) Pension or other employee benefit. A senior employee or spouse 
or minor child of a senior employee may have a financial interest, such 
as a pension or

[[Page 884]]

other employee benefit, arising from employment with a substantially 
affected organization.

    Note to paragraph (d)(1): NIH employees, as opposed to spouses and 
minor children of employees, are generally prohibited under Sec.  
5501.109 from engaging in current employment with a substantially 
affected organization.

    (2) De minimis holdings. A senior employee or spouse or minor child 
of a senior employee may have a financial interest in a substantially 
affected organization if:
    (i) The aggregate market value of the combined interests of the 
senior employee and the senior employee's spouse and minor children in 
any one substantially affected organization is equal to or less than the 
de minimis exemption limit for matters involving parties established by 
5 CFR 2640.202(a) or $15,000, whichever is greater;
    (ii) The holding, if it represents an equity interest, constitutes 
less than 1 percent of the total outstanding equity of the organization; 
and
    (iii) The total holdings in substantially affected organizations and 
sector mutual funds that, in the literature they distribute to 
prospective and current investors or participants, state the objective 
or practice of concentrating their investments in the securities of 
substantially affected organizations account for less than 50 percent of 
the total value of the combined investment portfolios of the senior 
employee and the senior employee's spouse and minor children.
    (3) Diversified mutual funds. A senior employee or spouse or minor 
child of a senior employee may have an interest in a substantially 
affected organization that constitutes any interest in a publicly traded 
or publicly available investment fund (e.g., a mutual fund), or a widely 
held pension or similar fund, which, in the literature it distributes to 
prospective and current investors or participants, does not indicate the 
objective or practice of concentrating its investments in substantially 
affected organizations, if the employee neither exercises control nor 
has the ability to exercise control over the financial interests held in 
the fund.
    (4) Exceptional circumstances. In cases involving exceptional 
circumstances, the NIH Director or the NIH Director's designee, with the 
approval of the designated agency ethics official or his designee, may 
grant a written exception to permit a senior employee, or the spouse or 
minor child of a senior employee, or a class of such individuals, to 
hold a financial interest in a substantially affected organization based 
upon a determination that the application of the prohibition in 
paragraph (c) of this section is not necessary to ensure public 
confidence in the impartiality or objectivity with which HHS programs 
are administered or to avoid a violation of part 2635 of this title.
    (5) Technology transfer. A senior employee may have a financial 
interest in connection with the development and commercialization of 
invention rights obtained by the employee pursuant to Executive Order 
10096, 15 U.S.C. 3710d, or implementing regulations.
    (6) Sector mutual funds. (i) A senior employee or spouse or minor 
child of a senior employee may have an interest in a substantially 
affected organization that constitutes any interest in a sector mutual 
fund that, in the literature it distributes to prospective and current 
investors or participants, does not indicate the objective or practice 
of concentrating its investments in the biomedical science, 
pharmaceutical, medical device, biotechnology, or health industry 
sectors.
    (ii) A senior employee or spouse or minor child of a senior employee 
may have an interest in a substantially affected organization that 
constitutes any interest in a sector mutual fund that, in the literature 
it distributes to prospective and current investors or participants, 
states the objective or practice of concentrating its investments in the 
securities of substantially affected organizations provided that:
    (A) The aggregate market value of the combined ownership interests 
of the senior employee and the senior employee's spouse and minor 
children in such sector funds is equal to or less than the de minimis 
exemption limit for sector mutual funds established by 5 CFR 
2640.201(b)(2)(i) or $50,000, whichever is greater; and
    (B) The total holdings in substantially affected organizations and 
in

[[Page 885]]

sector mutual funds that, in the literature they distribute to 
prospective and current investors or participants, state the objective 
or practice of concentrating their investments in the securities of 
substantially affected organizations account for less than 50 percent of 
the total value of the combined investment portfolios of the senior 
employee and the senior employee's spouse and minor children.

    Note to paragraph (d): With respect to any excepted financial 
interest, employees are reminded of their obligations under 5 CFR part 
2635, and specifically their obligation under subpart D to disqualify 
themselves from participating in any particular matter in which they, 
their spouses or minor children have a financial interest arising from 
publicly traded securities that exceeds the de minimis thresholds 
specified in the regulatory exemption at 5 CFR 2640.202 or from non-
publicly traded securities that are not covered by the regulatory 
exemption. Furthermore, the agency may prohibit or restrict an 
individual employee from acquiring or holding any financial interest or 
a class of financial interests based on the agency's determination that 
the interest creates a substantial conflict with the employee's duties, 
within the meaning of 5 CFR 2635.403.

    (e) Reporting and divestiture. For purposes of determining the 
divestiture period specified in 5 CFR 2635.403(d), as applied to 
financial interests prohibited under paragraph (c) of this section, the 
``date divestiture is first directed'' means the date on which the new 
entrant public or confidential financial disclosure report required by 
part 2634 of this title or any report required by Sec.  5502.107(c) of 
this chapter is due.

[70 FR 5562, Feb. 3, 2005, as amended at 70 FR 51571, Aug. 31, 2005]



Sec.  5501.111  Awards tendered to employees of 
the National Institutes of Health.

    (a) Applicability. This section does not apply to special Government 
employees.
    (b) Definitions. For purposes of this section, official 
responsibility has the meaning set forth in 18 U.S.C. 202(b).
    (c) Additional limitations on awards to employees of the National 
Institutes of Health. The following limitations shall apply to the 
acceptance by an employee of an award pursuant to 5 CFR 2635.204(d):
    (1) Limitations applicable to employees with official responsibility 
for matters affecting an award donor. An employee shall not accept a 
gift with an aggregate market value of more than $200, or that is cash 
or an investment interest, that is an award or incident to an award from 
a person, organization, or other donor that:
    (i) Is seeking official action from the employee, any subordinate of 
the employee, or any agency component or subcomponent under the 
employee's official responsibility;
    (ii) Does business or seeks to do business with any agency component 
or subcomponent under the employee's official responsibility;
    (iii) Conducts activities substantially affected by the programs, 
policies, or operations of any agency component or subcomponent under 
the employee's official responsibility; or
    (iv) Is an organization a majority of whose members are described in 
paragraphs (c)(1)(i) through (iii) of this section.
    (2) Prior approval of awards--(i) No employee shall accept an award 
under 5 CFR 2635.204(d) or this section unless the receipt thereof has 
been approved in writing in advance in accordance with procedures 
specified by the designated agency ethics official, or with the 
concurrence of the designated agency ethics official, the NIH Director 
or the NIH Director's designee.
    (ii) Approval shall be granted only upon a determination that 
acceptance of the award is not prohibited by statute or Federal 
regulation, including 5 CFR part 2635 and this part.

    Note to paragraph (c): In some circumstances cash and other things 
of value provided in connection with the provision of personal services, 
including speaking or writing, may be compensation, not a gift. Other 
ethics rules governing outside activities may restrict receipt of such 
compensation. See, for example, 5 CFR 2635.807.

    (d) Exception. Notwithstanding the prohibition in paragraph (c)(1) 
of this section, the NIH Director (or the Secretary, with respect to 
awards tendered to the NIH Director), with the approval of the 
designated agency ethics official, may grant a written exception to 
permit an employee to accept an award

[[Page 886]]

otherwise prohibited by this section under the following conditions:
    (1) There is a determination by the NIH Director (or the Secretary, 
with respect to awards tendered to the NIH Director) that acceptance of 
the gift will further an agency interest because it confers an 
exceptionally high honor in the fields of medicine or scientific 
research. The following criteria will be considered in making such a 
determination:
    (i) The identity of the awarding organization;
    (ii) The longevity of the awards program;
    (iii) The source of award funds;
    (iv) The size of the monetary component of the award recognition;
    (v) The identity and credentials of past award recipients;
    (vi) The degree of publicity attendant to receipt of the award; and
    (vii) The impact of the substantive contribution being recognized;
    (2) Absent the prohibition in paragraph (c)(1) of this section, the 
gift would be permitted under part 2635 of this title; and
    (3) The designated agency ethics official shall have determined that 
the application of the prohibition in paragraph (c)(1) of this section 
is not necessary to ensure public confidence in the impartiality or 
objectivity with which NIH programs are administered or to avoid a 
violation of part 2635 of this title.
    (e) Disposition of improperly accepted awards--(1) Failure to obtain 
prior approval. If an employee accepts an award for which approval is 
required under paragraph (c)(2) of this section without obtaining such 
approval, the employee may be required, in addition to any penalty 
provided by law and applicable regulations, to forfeit the award by 
returning it to the donor.
    (2) Receipt of prohibited award. If an employee accepts an award 
prohibited by paragraph (c)(1) of this section, the employee shall be 
required, in addition to any penalty provided by law and applicable 
regulations, to:
    (i) Reject the award and instruct the donor to strike the honoree's 
name from any list of award recipients;
    (ii) Remove the recognition from the employee's r[eacute]sum[eacute] 
or curriculum vitae;
    (iii) Return any tangible indicia of the recognition to the donor; 
and
    (iv) Forfeit the award by returning it to the donor.

[70 FR 5563, Feb. 3, 2005, as amended at 70 FR 51572, Aug. 31, 2005]



Sec.  5501.112  One-year disqualification of employees of 
the National Institutes of Health from certain matters 
involving an award donor.

    An employee, other than a special Government employee, of the 
National Institutes of Health who has, within the last year, accepted an 
award permitted under 5 CFR 2635.204(d) or Sec.  5501.111 shall not 
participate in any particular matter involving specific parties in which 
the donor is or represents a party unless authorized to do so under 5 
CFR 2635.502(d).

[70 FR 5564, Feb. 3, 2005]



PART 5502_SUPPLEMENTAL FINANCIAL DISCLOSURE REQUIREMENTS FOR EMPLOYEES 
OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES--Table of Contents



Sec.
5502.101 General.
5502.102 Annual supplemental report of outside employment or activities.
5502.103 Content of annual supplemental reports.
5502.104 Confidentiality of reports.
5502.105 Agency procedures.
5502.106 Supplemental disclosure of prohibited financial interests 
          applicable to employees of the Food and Drug Administration.
5502.107 Supplemental disclosure of financial interests in substantially 
          affected organizations applicable to employees of the National 
          Institutes of Health.

    Authority: 5 U.S.C. 301, 7301; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 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; 5 CFR 
2634.103.

    Source: 70 FR 5564, Feb. 3, 2005, unless otherwise noted.



Sec.  5502.101  General.

    The regulations in this part apply to employees of the Department of 
Health and Human Services and supplement

[[Page 887]]

the Executive Branch Financial Disclosure Regulations in 5 CFR part 
2634. Any regulation in this part made applicable only to the employees 
of an HHS component designated as a separate agency under Sec.  
5501.102(a) of this chapter shall apply to the employees of that 
component as defined in Sec.  5501.102(b)(1) of this chapter.



Sec.  5502.102  Annual supplemental report of outside employment or activities.

    Any employee, other than a special Government employee, for whom an 
outside employment or activity has been approved, or who has 
participated in any outside employment or activity for which prior 
approval is required, under part 5501 of this chapter shall file on or 
before February 28 of each year a report concerning all such activities 
that were approved or undertaken in the previous calendar year. The 
annual report shall be filed with the employee's supervisor who shall 
review the form, in consultation with an agency ethics official, and 
determine whether the employee has complied with applicable laws and 
regulations and whether approval of any ongoing outside activity should 
be cancelled because the activity does not meet the standard in Sec.  
5501.106(d)(5) of this chapter.

[70 FR 5564, Feb. 3, 2005, as amended at 70 FR 51573, Aug. 31, 2005]



Sec.  5502.103  Content of annual supplemental reports.

    The annual supplemental report of outside employment or activities 
required by Sec.  5502.102 shall include the following information:
    (a) The employee's name, contact information, organizational 
location, occupational title, grade, step, salary, appointment type, and 
financial disclosure filing status;
    (b) A list of all outside activities for which prior approval is 
required under part 5501 of this chapter that were approved pursuant to 
5 CFR 5501.106(d) or undertaken within the reporting period. The report 
must identify the person or organization for whom or with which the 
employee was to perform the activity and the approval date;
    (c) A statement as to whether the anticipated work described in a 
previously approved outside activity was actually performed for the 
person or organization named in the request for approval;
    (d) For each outside activity actually performed, the beginning date 
of the relationship with the outside entity, the date(s) personal 
services were provided, the total number of hours spent and leave used 
on the activity within the reporting period, and the ending date;
    (e) For each outside activity that remains ongoing at the time of 
filing the report, a statement as to how long the activity is 
anticipated to continue, the date on which prior approval expires, and 
whether a request for renewal of approval is anticipated;
    (f) For each outside activity actually performed, the type and 
amount of any income and/or reimbursements actually received during the 
reporting period and the date paid;
    (g) For each outside activity actually performed, the type and 
amount of any income and/or reimbursements earned during or attributable 
to the reporting period that were not in fact received during the 
reporting period and remain due;
    (h) A statement as to whether any change has occurred or is 
anticipated with respect to information supplied in the original outside 
activity approval request;
    (i) A description of any change in the nature, scope, or subject 
matter of any approved activity; and
    (j) A description of any change in jobs or in the duties and 
responsibilities of the employee's position that occurred after the 
outside activity was approved.



Sec.  5502.104  Confidentiality of reports.

    Each report filed under this part is confidential and shall not be 
disclosed to the public, except as provided under Sec.  2634.604(b) of 
this title.



Sec.  5502.105  Agency procedures.

    (a) The designated agency ethics official or, with the concurrence 
of the designated agency ethics official, each of the separate agency 
components of HHS listed in Sec.  5501.102(a) of this chapter may 
prescribe forms for the collection of information under this part and 
establish procedures for the submission

[[Page 888]]

and review of each report filed. These procedures may provide for filing 
extensions, for good cause shown, totaling not more than 90 days.
    (b) For good cause, the designated agency ethics official may extend 
the reporting deadlines for reports required under this part during the 
initial implementation phase for any reporting requirement, without 
regard to the 90 day maximum specified in paragraph (a) of this section.

[70 FR 37009, June 28, 2005, as amended at 70 FR 51573, Aug. 31, 2005]



Sec.  5502.106  Supplemental disclosure of prohibited financial interests 
applicable to employees of the Food and Drug Administration.

    (a) Applicability. This section does not apply to special Government 
employees.
    (b) Definitions. For purposes of this section:
    (1) Confidential filer means an employee who meets the criteria in 5 
CFR 2634.904 and who has not been excluded from the requirement of 
filing a confidential financial disclosure report under the procedures 
in 5 CFR 2634.905.
    (2) Prohibited financial interest means a financial interest 
prohibited by Sec.  5501.104(a), including those financial interests 
that are excepted under Sec.  5501.104(b) of this chapter.
    (3) Public filer means an employee who meets the criteria in 5 CFR 
2634.202 and who has not been excluded from the requirement of filing a 
public financial disclosure report under the procedures in 5 CFR 
2634.203.
    (4) Remainder of HHS has the meaning set forth in Sec.  
5501.102(b)(2) of this chapter.
    (5) Separate agency component has the meaning set forth in Sec.  
5501.102(a) of this chapter.
    (c) Report of prohibited financial interests--(1) New entrant 
employees. A new entrant employee shall report in writing within 30 days 
after entering on duty with the FDA any prohibited financial interest 
and the value thereof held upon commencement of employment with the 
agency.
    (2) Reassigned employees. An employee of a separate agency component 
other than the FDA or of the remainder of HHS who is reassigned to a 
position at the FDA shall report in writing within 30 days of entering 
on duty with the FDA any prohibited financial interest and the value 
thereof held on the effective date of the reassignment to the agency.
    (3) Incumbent employees. An incumbent employee of the FDA who 
acquires any prohibited financial interest shall report such interest 
and the value thereof in writing within 30 days after acquiring the 
financial interest.

[70 FR 5564, Feb. 3, 2005, as amended at 70 FR 51573, Aug. 31, 2005; 70 
FR 61713, Oct. 26, 2005]



Sec.  5502.107  Supplemental disclosure of financial interests 
in substantially affected organizations applicable to employees 
of the National Institutes of Health.

    (a) Applicability. This section does not apply to special Government 
employees.
    (b) Definitions. For purposes of this section:
    (1) Clinical investigator means an employee identified as a 
principal investigator, accountable investigator, lead associate 
investigator, medical advisory investigator, associate investigator, or 
other subinvestigator in an NIH clinical study involving human subjects 
under a clinical research protocol approved by an institutional review 
board.
    (2) Clinical research has the meaning set forth in 42 U.S.C. 
284d(b).
    (3) Institutional review board (IRB) means any board, committee, or 
other group formally designated by an institution to review a clinical 
research protocol and approve the initiation of biomedical research 
involving human subjects and to assess periodically the progress of the 
investigation to protect the rights and welfare of the trial 
participants.
    (4) Confidential filer means an employee who meets the criteria in 5 
CFR 2634.904 and who has not been excluded from the requirement of 
filing a confidential financial disclosure report under the procedures 
in 5 CFR 2634.905.
    (5) Public filer means an employee who meets the criteria in 5 CFR 
2634.202 and who has not been excluded from the requirement of filing a 
public financial disclosure report under the procedures in 5 CFR 
2634.203.

[[Page 889]]

    (6) Remainder of HHS has the meaning set forth in Sec.  
5501.102(b)(2) of this chapter.
    (7) Separate agency component has the meaning set forth in Sec.  
5501.102(a) of this chapter.
    (8) Substantially affected organization has the meaning set forth in 
Sec.  5501.109(b)(10) of this chapter.
    (c) Report of financial interests in substantially affected 
organizations--(1) New entrant employees. A new entrant employee who is 
a public filer or a confidential filer or who is designated to serve as 
a clinical investigator shall report in writing within 30 days after 
entering on duty with the NIH any financial interest in a substantially 
affected organization and the value thereof held upon commencement of 
employment with the agency.
    (2) Reassigned employees. An employee of a separate agency 
component, other than the NIH, or of the remainder of HHS who is either 
a public filer, a confidential filer, or a clinical investigator who is 
reassigned to a position at the NIH shall report in writing within 30 
days of entering on duty with the NIH any financial interest in a 
substantially affected organization and the value thereof held on the 
effective date of the reassignment to the agency.
    (3) Incumbent employees. An incumbent employee of the NIH who is 
either a public filer, a confidential filer, or a clinical investigator 
who acquires any financial interest in a substantially affected 
organization shall report such interest and the value thereof in writing 
within 30 days after acquiring the financial interest. Any incumbent 
employee, irrespective of financial disclosure filing status, who is 
designated a clinical investigator shall report in writing within 30 
days of the approval of the clinical research protocol by the relevant 
institutional review board any financial interest in a substantially 
affected organization and the value thereof held on the date of the IRB 
approval.
    (4) Initial report by on duty employees. An employee on duty at the 
NIH on August 31, 2005, who is either a public filer, a confidential 
filer, or a clinical investigator shall report in writing on or before 
October 31, 2005, any financial interest in a substantially affected 
organization and the value thereof held on the date the report is filed.

[70 FR 51573, Aug. 31, 2005, as amended at 70 FR 61713, Oct. 26, 2005]

                       PARTS 5503	5599 [RESERVED]

[[Page 891]]



                  CHAPTER XLVI--POSTAL RATE COMMISSION




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5600

[Reserved]

5601            Supplemental standards of ethical conduct 
                    for employees of the Postal Regulatory 
                    Commission..............................         893
5602-5699

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[[Page 893]]

                          PART 5600 [RESERVED]



PART 5601_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE POSTAL REGULATORY COMMISSION--Table of Contents



Sec.
5601.101 General.
5601.102 Prohibited financial interests.
5601.103 Notice of disqualification when seeking employment.
5601.104 Prohibited outside employment.
5601.105 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 39 U.S.C. 503; 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; 
5 CFR 2635.105, 2635.403(a), 2635.802(a), 2635.803.

    Source: 82 FR 50494, Nov. 1, 2017, unless otherwise noted.



Sec.  5601.101  General.

    (a) Purpose. In accordance with Sec.  2635.105 of this title, the 
regulations in this part apply to employees, including Commissioners, of 
the Postal Regulatory Commission (Commission) and supplement the 
Standards of Ethical Conduct for Employees of the Executive Branch 
contained in part 2635 of this title. In addition, the executive branch 
financial disclosure regulations contained in part 2634 of this title, 
additional regulations on responsibilities and conduct at part 735 of 
this title, and Commission-specific provisions contained in 39 CFR part 
3000 apply to Commission employees.
    (b) Definitions. For the purposes of this part:
    (1) The term securities includes an interest in debt or equity 
instruments. The term includes, without limitation, secured and 
unsecured bonds, debentures, notes, securitized assets, and commercial 
paper, as well as all types of preferred and common stock. The term 
encompasses both current and contingent ownership interests, including 
any beneficial or legal interest derived from a trust. It extends to any 
right to acquire or dispose of any long or short position in such 
securities and includes, without limitation, interests convertible into 
such securities, as well as options, rights, warrants, puts, calls, and 
straddles with respect thereto.
    (2) The term parent means a company that possesses, directly or 
indirectly, the power to direct or cause the direction of the management 
and policies of an entity identified in Sec.  5601.102 (b)(1)(i) through 
(v).
    (3) The term person means an individual, corporation and 
subsidiaries it controls, company, association, firm, partnership, 
society, joint stock company, or any other organization or institution, 
including any officer, employee, or agent of such person or entity. For 
purposes of this part, a corporation will be deemed to control a 
subsidiary if it owns 50 percent or more of the subsidiary's voting 
securities. The term is all-inclusive and applies to commercial ventures 
and nonprofit organizations as well as to foreign, State, and local 
governments, including the Government of the District of Columbia. It 
does not include any agency or other entity of the Federal Government or 
any officer or employee thereof when acting in his official capacity on 
behalf of that agency or entity.
    (4) The term entity means person.
    (5) The term DAEO means the Designated Agency Ethics Official, or 
his delegate under Sec.  2638.601 of this title.
    (6) The term employment means any form of non-Federal employment or 
business relationship involving the provision of personal services by 
the employee. It includes but is not limited to personal services as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner or trustee. Employment does not include participation in 
the activities of a nonprofit charitable, religious, professional, 
social, fraternal, educational, recreational, public service or civic 
organization unless such activities involve the practice of a profession 
within the meaning of Sec.  2636.305(b)(1) of this title, including the 
giving of professional advice, or are for compensation, other than 
reimbursement of expenses.
    (7) The term publicly held corporation means any corporation issuing 
any class of common equity securities required to be registered under 
section 12 of the Securities Exchange Act of 1934.

[[Page 894]]

    (8) The term dependent child means when used with respect to any 
reporting individual, any individual who is a son, daughter, stepson, or 
stepdaughter and who:
    (i) Is unmarried, under age 21, and living in the household of the 
reporting individual; or
    (ii) Is a dependent of the reporting individual within the meaning 
of section 152 of the Internal Revenue Code of 1986, 26 U.S.C. 152.



Sec.  5601.102  Prohibited financial interests.

    (a) General prohibition. No employee, and no spouse or dependent 
child of an employee, shall acquire or hold any securities issued by an 
entity on the prohibited securities list described in paragraph (b) of 
this section.
    (b) Prohibited securities list. At least once a year, the Commission 
will publish and distribute to employees a list of entities whose 
securities an employee or the spouse or dependent child of an employee 
may not own.
    (1) The list shall include:
    (i) An entity participating in a proceeding before the Commission in 
the last 4 years, e.g., complainants, appellants, intervenors, and 
entities filing comments on the record in Commission proceedings;
    (ii) A party to a proceeding to which the Commission is a party, 
e.g., appellate proceedings, administrative proceedings, or civil 
actions;
    (iii) An entity primarily engaged in the business of delivering 
packages, merchandise, or written communications, i.e., an entity whose 
primary business competes with the Postal Service;
    (iv) An entity providing services or products to the Postal Service 
that can be expected to produce annual revenue:
    (A) to a publicly held corporation exceeding $1,000,000, and if the 
entity reports its gross revenue publicly, exceeding 10 percent of its 
annual gross revenue; or
    (B) to any other entity exceeding $100,000, and if the entity 
reports its gross revenue publicly, exceeding 5 percent of the entity's 
annual gross revenue;
    (v) Any other entities not listed above for which a Commission 
employee holding a security may raise an actual or apparent loss of 
impartiality affecting the integrity of the Commission's programs and 
operations, e.g., entities primarily engaged in the business of 
publishing or distributing publications such as periodicals or sending 
advertising, promotional, or other material on behalf of itself or 
another entity through the mails; and
    (vi) The parent corporation of any subsidiary described in 
paragraphs (b)(1)(i) through (v) of this section.
    (2) The list shall not include an entity whose use of the mail is 
merely an incidental or minor factor in the general conduct of its 
business.
    (c) Exception. Nothing in this section prohibits an employee, or the 
spouse or dependent child of an employee, from acquiring or holding an 
interest in a publicly traded or publicly available mutual fund or other 
collective investment fund, or in a widely held pension or mutual fund, 
provided that the fund's prospectus or practice does not indicate the 
stated objective of concentrating its investments in entities identified 
in paragraphs (b)(1)(i) through (vi) of this section.
    (d) Newly prohibited securities or new employees. Within 30 days 
after the Commission disseminates the prohibited securities list to an 
employee, an employee who owns, or whose spouse or dependent child owns, 
prohibited securities shall report that ownership to the DAEO. The 
employee's report must be in writing and include the name of the 
prohibited security and the date of acquisition. Except as provided in 
paragraph (g) of this section, the employee, or the spouse or dependent 
child of the employee, shall divest prohibited securities within 90 days 
after dissemination of the prohibited securities list.
    (e) Securities acquired without specific intent. Within 30 days 
after an employee, or the spouse or dependent child of an employee, 
acquires securities of an entity on the prohibited securities list as a 
result of marriage, inheritance, gift or otherwise without specific 
intent to acquire the securities, the employee shall report the 
acquisition to the DAEO. The employee's report must be in writing and 
include the name of the prohibited security, the date of acquisition, 
and the method

[[Page 895]]

of acquisition. Except as provided in paragraph (g) of this section, an 
employee, or the spouse or dependent child of an employee, shall divest 
prohibited securities within 90 days after the date of acquisition.
    (f) Divestiture--(1) Procedure for accomplishing divestiture. To 
alleviate an actual or apparent conflict of interest, an employee 
divesting prohibited securities shall obtain written confirmation from 
the DAEO that divesture has been accomplished. A request for such 
confirmation shall be submitted in writing with sufficient proof to 
enable the DAEO to confirm that the employee has divested the prohibited 
security. The employee shall continue to be recused until the date of 
the DAEO's written confirmation that divesture has been accomplished.
    (2) Extension of period to divest. Upon a showing of undue hardship, 
the DAEO may extend the 90 day period for divestiture specified in 
paragraphs (e) through (f) of this section.
    (3) Disqualification pending divestiture. Pending divestiture of 
prohibited securities, an employee must disqualify himself or herself, 
in accordance with Sec.  2635.402 of this title, from participation in 
particular matters which, as a result of continued ownership of the 
prohibited securities, would affect the financial interests of the 
employee, or those of the spouse or dependent child of the employee.
    (g) Waivers. The DAEO may grant a written waiver from this section 
based on a determination that the waiver is not inconsistent with part 
2635 of this title or otherwise prohibited by law and that, under the 
particular circumstances, application of the prohibition is not 
necessary to avoid the appearance of an employee's misuse of position or 
loss of impartiality, or to otherwise ensure confidence in the 
impartiality and objectivity with which the Commission's programs are 
administered, or in the case of a special Government employee, 
divestiture would result in substantial financial hardship. A waiver 
under this paragraph must be in writing and may impose conditions, such 
as requiring execution of a written disqualification.



Sec.  5601.103  Notice of disqualification when seeking employment.

    (a) An employee who has been assigned to or is supervising work on a 
particular matter that affects the financial interests of a prospective 
employer and who is required, in accordance with Sec.  2635.604(a) of 
this title, to disqualify himself or herself from participation in that 
matter shall provide written notice of disqualification to the DAEO 
within 3 business days. The DAEO shall inform the employee's supervisor 
that the employee is disqualified from the matter. Public filers must 
comply with the notification requirement set forth in Sec.  2635.607 of 
this title even when not required to disqualify from participation in a 
particular matter. Employees who file a notification statement in 
compliance with Sec.  2635.607 of this title are not required to file a 
separate notice under this section.
    (b) An employee may withdraw written notice under paragraph (a) of 
this section upon determining that disqualification from participation 
in the matter is no longer required. A withdrawal of disqualification 
shall be in writing and shall be provided to the DAEO. The DAEO shall 
inform the employee's supervisor that the employee is no longer 
disqualified from the matter.



Sec.  5601.104  Prohibited outside employment.

    An employee shall not engage in outside employment, either on a paid 
or unpaid basis, with or for an entity on the prohibited securities list 
described in Sec.  5601.102(b)(1)(i) through (vi).



Sec.  5601.105  Prior approval for outside employment.

    (a) Prior approval for outside employment. An employee who wishes to 
engage in outside employment, either on a paid or unpaid basis, shall 
obtain the prior written approval of the DAEO. A request for such 
approval shall be submitted in writing with sufficient description of 
the employment to enable the DAEO to give approval based on an informed 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or

[[Page 896]]

Federal regulation, including paragraph (a) of this section and part 
2635 of this title. The DAEO shall provide a copy of any written 
approvals for outside employment to the employee's supervisor.
    (b) Scope of approval. An employee must submit a new request for 
approval upon either a significant change in the nature or scope of the 
outside employment or a change in the employee's Commission position or 
assigned responsibilities.

                       PARTS 5602	5699 [RESERVED]

[[Page 897]]



                 CHAPTER XLVII--FEDERAL TRADE COMMISSION




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                    for employees of the Federal Trade 
                    Commission..............................         899
5702-5799

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[[Page 899]]

                          PART 5700 [RESERVED]



PART 5701_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL TRADE COMMISSION--Table of Contents



Sec.
5701.101 Prior approval for outside employment.
5701.102 Fundraising activities.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 15 U.S.C. 46(g); 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; 
5 CFR 2635.105, 2635.803, 2635.808(c).



Sec.  5701.101  Prior approval for outside employment.

    (a) Before engaging in any outside employment, whether or not for 
compensation, an employee of the Federal Trade Commission, other than a 
Commissioner, must obtain the written approval of his or her supervisor 
and the Designated Agency Ethics Official (DAEO) or his or her designee. 
Requests for approval shall be forwarded through normal supervisory 
channels to the DAEO and shall include, at a minimum, the following:
    (1) A statement of the name of the person, group, or organization 
for whom the work is to be performed; the type of work to be performed; 
and the proposed hours of work and approximate dates of employment;
    (2) The employee's certification that the outside employment will 
not depend in any way on information obtained as a result of the 
employee's official Government position;
    (3) The employee's certification that no official duty time or 
Government property, resource, or facilities not available to the 
general public will be used in connection with the outside employment;
    (4) The employee's certification that he has read, is familiar with, 
and will abide by the restrictions contained in all applicable Federal 
laws and regulations, including those found in 18 U.S.C. chapter 11 and 
those found or referenced in subpart H (``Outside Activities'') of 5 CFR 
part 2635 (Standards of Ethical Conduct for Employees of the Executive 
Branch); and
    (5) The written approval of the employee's immediate supervisor.
    (b) Approval shall be granted only upon a determination that the 
outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation. In the case of an employee who wishes to 
practice a profession involving a fiduciary relationship, as defined in 
5 CFR 2636.305(b), approval will be granted only on a case-by-case 
basis.
    (c) For purposes of this section, ``employment'' means any form of 
non-Federal employment or business relationship involving the provision 
of personal services by the employee, whether or not for compensation. 
It includes but it is not limited to personal services as an officer, 
director, employee, agent, attorney, consultant, contractor, general 
partner, or trustee. Prior approval is not required, however, to 
participate in the activities of a nonprofit charitable, religious, 
professional, social, fraternal, educational, recreational, public 
service, or civic organization, unless such activities involve the 
provision of professional services or advice or are for compensation 
other than reimbursement of expenses.

[58 FR 30695, May 27, 1993]



Sec.  5701.102  Fundraising activities.

    When engaging in personal fundraising, as described at 5 CFR 
2635.808(c), an employee of the Federal Trade Commission may, 
notwithstanding the prohibition of Sec.  2635.808(c)(1)(i), personally 
solicit funds from a person who is a prohibited source only under 5 CFR 
2635.203(d)(3) (i.e., because the person ``conducts activities regulated 
by'' the Commission). The other provisions of Sec.  2635.808(c) continue 
to apply to any such personal fundraising.

    Example 1: A Federal Trade Commission employee is president of the 
local branch of her college alumni association. The association is 
seeking contributions from local businesses. The employee may, during 
her off-duty hours, seek a contribution from a company that is regulated 
by the Commission, but not from one that she knows is currently under 
Commission investigation or is seeking official action by the 
Commission, does business or seeks to do business with the Commission, 
or has interests that may be substantially affected by the employee's 
job.

[[Page 900]]

While the Standards of Conduct provide that companies under the agency's 
enforcement authority generally are prohibited sources of an employee's 
fundraising in a personal capacity, Sec.  5701.102 provides that 
employees of the FTC may seek charitable contributions from an entity 
that is a prohibited source only because its activities are subject to 
agency regulation.

[63 FR 43070, Aug. 12, 1998]

                       PARTS 5702	5799 [RESERVED]

[[Page 901]]



              CHAPTER XLVIII--NUCLEAR REGULATORY COMMISSION




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                    for employees of the Nuclear Regulatory 
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5802-5899

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[[Page 903]]

                          PART 5800 [RESERVED]



PART 5801_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NUCLEAR REGULATORY COMMISSION--Table of Contents



Sec.
5801.101 General.
5801.102 Prohibited securities.
5801.103 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. Appendix (Ethics in Government 
Act of 1978); Atomic Energy Act of 1954, sec. 161 (42 U.S.C. 2201); 
Energy Reorganization Act of 1974, sec. 201 (42 U.S.C. 5841); 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; 5 CFR 2635.105, 2635.403, 
2635.803.

    Source: 59 FR 17459, Apr. 13, 1994, unless otherwise noted.



Sec.  5801.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to members and other employees of the Nuclear Regulatory 
Commission and supplement the Standards of Ethical Conduct for Employees 
of the Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635 and this part, members and other employees 
are subject to the executive branch financial disclosure regulations 
contained in 5 CFR part 2634 and to additional regulations regarding 
their conduct contained in 10 CFR part 0.



Sec.  5801.102  Prohibited securities.

    (a) General prohibition. No covered employee, and no spouse or minor 
child of a covered employee, shall own securities issued by an entity on 
the list described in paragraph (b) of this section.
    (b) Prohibited securities list. Once a year, or on a more frequent 
basis, the Commission will publish and distribute to employees a list of 
entities whose securities a covered employee or the spouse or minor 
child of a covered employee may not own. The list shall consist of 
entities which are:
    (1) Applicants for or holders of early site permits, construction 
permits, operating licenses, or combined construction permits and 
operating licenses for facilities which generate electric energy by 
means of a nuclear reactor;
    (2) State or local governments, if the primary purpose of the 
security is to finance the construction or operation of a nuclear 
reactor or a low-level waste facility;
    (3) Entities manufacturing or selling nuclear power or test 
reactors;
    (4) Architectural-engineering companies providing services relating 
to a nuclear power reactor;
    (5) Applicants for, or holders of, a certified standard design;
    (6) Entities licensed or regulated by the Commission to mill, 
convert, enrich, fabricate, store, or dispose of source, byproduct, or 
special nuclear material, or applicants for such licenses that are 
designated by the Commission because they are or will be substantially 
engaged in such nuclear fuel cycle or disposal activities;
    (7) The parent corporation of any subsidiary described in paragraphs 
(b)(1)-(b)(6) of this section; and
    (8) An energy or utility sector investment fund which has more than 
25% of its assets invested in securities issued by entities described in 
paragraphs (b)(1)-(b)(7) of this section.
    (c) Definitions. For purposes of this section:
    (1) A covered employee means:
    (i) A member of the Commission;
    (ii) The Inspector General of the NRC;
    (iii) A member of the Senior Executive Service (SES);
    (iv) An employee who holds a non-SES position above GG-15; and
    (v) Any other employee, including a special Government employee, 
whose duties and responsibilities, as determined by the Commission or 
its designees, require application of the securities ownership 
prohibition contained in this section to ensure public confidence that 
NRC programs are conducted impartially and objectively. The positions of 
these employees are specified in NRC Management Handbook 7.7, which is 
available in the NRC Public Document Room; and
    (2) The term ``securities'' includes all interests in debts or 
equity instruments. The term includes, without limitation, secured and 
unsecured bonds, debentures, notes, securitized assets

[[Page 904]]

and commercial paper, as well as all types of preferred and common 
stock. The term encompasses both current and contingent ownership 
interests, including any beneficial or legal interest derived from a 
trust. It extends to any right to acquire or dispose of any long or 
short position in such securities and includes, without limitation, 
interests convertible into such securities, as well as options, rights, 
warrants, puts, calls, and straddles with respect thereto.
    (d) Divestiture and reporting of prohibited securities--(1) Newly 
covered employees. Upon promotion or other appointment to a position 
subject to the securities prohibition of this section, a covered 
employee shall sign a certification:
    (i) Identifying securities of an entity on the prohibited securities 
list which the employee, or the spouse or minor child of the employee, 
owns, or
    (ii) Stating that the employee, or the spouse or minor child of the 
employee, does not own any prohibited securities.

Except as provided in paragraph (d)(4) of this section, the newly 
covered employee, or the spouse or minor child of the employee, shall 
divest prohibited securities within 90 days after appointment to the 
covered position.
    (2) Newly prohibited securities. Within 30 days after publication of 
the prohibited securities list to which an entity's name has been added, 
a covered employee who owns, or whose spouse or minor child owns, 
prohibited securities shall make a written report of that ownership to 
the Office of the General Counsel. Except as provided in paragraph 
(d)(4) of this section, the covered employee, or the spouse or minor 
child of the covered employee, shall divest prohibited securities within 
90 days after publication of the prohibited securities list.
    (3) Securities acquired without specific intent. Within 30 days 
after a covered employee, or the spouse or minor child of a covered 
employee, acquires securities of an entity on the prohibited securities 
list as a result of marriage, inheritance, gift or otherwise without 
specific intent to acquire the securities, the covered employee shall 
make a written report of the acquisition to the Office of the General 
Counsel. Except as provided in paragraph (d)(4) of this section, a 
covered employee, or the spouse or minor child of a covered employee, 
shall divest prohibited securities within 90 days after the date of 
acquisition.
    (4) Extension of period to divest. Upon a showing of undue hardship, 
the Chairman of the Nuclear Regulatory Commission may extend the 90 day 
period for divestiture specified in paragraphs (d)(1) through (d)(3) of 
this section.
    (5) Disqualification pending divestiture. Pending divestiture of 
prohibited securities, a covered employee must disqualify himself or 
herself, in accordance with 5 CFR 2635.402, from participation in 
particular matters which, as a result of continued ownership of the 
prohibited securities, would affect the financial interests of the 
employee, or those of the spouse or minor child of the employee. 
Disqualification is not required where a waiver described in 5 CFR 
2635.402(d) applies. Procedures for obtaining individual waivers are 
contained in NRC Handbook 7.7, which is available in the NRC Public 
Document Room.
    (6) Tax treatment of gain on divested securities. Where divestiture 
is required by this section, the covered employee (except a special 
Government employee) may be eligible to defer the tax consequences of 
divestiture under subpart J of 5 CFR part 2634, pursuant to procedures 
in NRC Handbook 7.7, which is available in the NRC Public Document Room.
    (e) Waivers. (1) The Chairman may grant a waiver to permit a covered 
employee, or the spouse or minor child of a covered employee, to retain 
ownership of a security of an entity on the prohibited securities list 
upon a determination that the holding of the security is not 
inconsistent with 5 CFR part 2635 or otherwise prohibited by law, and 
that:
    (i) Under the circumstances, application of the prohibition is not 
necessary to ensure confidence in the impartiality and objectivity with 
which NRC programs are administered;
    (ii) Legal constraints prevent divestiture; or
    (iii) For a special Government employee, divestiture would result in 
substantial financial hardship.

[[Page 905]]

    (2) Where a waiver has been granted under paragraph (e)(1) of this 
section, the covered employee must disqualify himself or herself, in 
accordance with 5 CFR 2635.402, from participation in particular matters 
which, as a result of continued ownership of the prohibited security, 
would affect the financial interests of the employee, or those of the 
spouse or minor child of the employee unless the employee has received a 
waiver described in 5 CFR 2635.402(d), pursuant to procedures in NRC 
Handbook 7.9, which is available in the NRC Public Document Room.



Sec.  5801.103  Prior approval for outside employment.

    (a) An employee, other than a special Government employee, shall 
obtain written authorization before engaging in compensated outside 
employment with:
    (1) A Commission licensee;
    (2) An applicant for a Commission license;
    (3) An organization directly engaged in activities in the commercial 
nuclear field;
    (4) A Commission contractor;
    (5) A Commission supplier;
    (6) An applicant for or holder of a license issued by a State 
pursuant to an agreement between the Commission and the State;
    (7) A trade association which represents clients concerning nuclear 
matters; or
    (8) A law firm or other organization which is participating in an 
NRC proceeding or which regularly represents itself or clients before 
the NRC.
    (b) Requests for approval shall be submitted in writing to the 
agency designee specified in NRC Management Directive 7.8, which is 
available in the NRC Public Document Room, in accordance with procedures 
set forth in the accompanying NRC Handbook.
    (c) Approval of outside employment shall be granted in writing only 
upon a determination by the agency designee that the proposed outside 
employment would not violate a Federal statute or regulation, including 
5 CFR 2635.
    (d) For purposes of this section, ``outside employment'' means any 
form of non-Federal employment, business relationship or activity, 
involving the provision of personal services by the employee. It 
includes, but is not limited to, personal services as an officer, 
director, employee, agent, attorney, consultant, contractor, general 
partner, trustee, teacher or speaker.

                       PARTS 5802	5899 [RESERVED]

[[Page 907]]



             CHAPTER XLIX--FEDERAL LABOR RELATIONS AUTHORITY




  --------------------------------------------------------------------
Part                                                                Page
5900

[Reserved]

5901            Supplemental standards of ethical conduct 
                    for employees of the Federal Labor 
                    Relations Authority.....................         909
5902-5999

 [Reserved]

[[Page 909]]

                          PART 5900 [RESERVED]



PART 5901_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL LABOR RELATIONS AUTHORITY--Table of Contents



Sec.
5901.101 General.
5901.102 Prior approval for outside employment.
5901.103 Procedure for accomplishing disqualification.

    Authority: 5 U.S.C. 7105; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.

    Source: 75 FR 79262, Dec. 20, 2010, unless otherwise noted.



Sec.  5901.101  General.

    (a) Applicability. In accordance with 5 CFR 2635.105, and unless 
provided elsewhere in this part, these regulations apply to all 
employees of the Federal Labor Relations Authority (FLRA), including 
employees of the Federal Service Impasses Panel and the Office of the 
General Counsel, and supplement the Standards of Ethical Conduct for 
Employees of the Executive Branch (Standards) contained in 5 CFR part 
2635.
    (b) Cross-references. In addition to 5 CFR part 2635 and this part, 
FLRA employees are required to comply with implementing guidance and 
procedures issued by the FLRA in accordance with 5 CFR 2635.105(c). FLRA 
employees are also subject to the regulations concerning executive 
branch financial disclosure contained in 5 CFR part 2634, the 
regulations concerning executive branch financial interests contained in 
5 CFR part 2640, and the regulations concerning executive branch 
employee responsibilities and conduct contained in 5 CFR part 735.
    (c) Agency designees. The Designated Agency Ethics Official (DAEO) 
and the Alternate Designated Agency Ethics Official (Alternate DAEO) 
shall serve as the FLRA's designees to make determinations, grant 
approvals, and take other actions under 5 CFR part 2635 and this part.



Sec.  5901.102  Prior approval for outside employment.

    (a) General requirement. Any FLRA employee, excluding all special 
Government employees (i.e., employees expected to work no more than 130 
days in any 365-day period), shall obtain prior written approval from 
the DAEO or the Alternate DAEO before engaging in any outside 
employment, except to the extent that the DAEO or the Alternate DAEO has 
issued an instruction or manual pursuant to paragraph (e) of this 
section. Nonetheless, special Government employees remain subject to 
other statutory and regulatory provisions governing their outside 
activities, including 18 U.S.C. 203(c) and 205(c), as well as applicable 
provisions of 5 CFR part 2635.
    (b) Definition of ``employment.'' (1) For the purposes of this 
section, ``employment'' means any form of non-Federal employment or 
business relationship involving the provision of personal services by 
the employee for direct, indirect, or deferred compensation other than 
reimbursement of actual and necessary expenses. It also includes, 
irrespective of compensation, the following outside activities:
    (i) Providing personal services as a consultant or professional, 
including service as an expert witness or as an attorney;
    (ii) Providing personal services to a for-profit entity as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner, trustee, teacher, or speaker; and
    (iii) Writing when done under an arrangement with another person for 
production or publication of the written product.
    (2) The definition does not include participation in the activities 
of a nonprofit charitable, religious, professional, social, fraternal, 
educational, recreational, public service or civic organization, unless:
    (i) The employee will receive compensation other than reimbursement 
of expenses;
    (ii) The organization's activities are devoted substantially to 
matters relating to the employee's official duties as defined in 5 CFR 
2635.807(a)(2)(i)(B) through (E) and the employee will

[[Page 910]]

serve as officer or director of the organization; or
    (iii) The activities will involve the provision of consultative or 
professional services. Consultative services means the provision of 
personal services by an employee, including the rendering of advice or 
consultation, which requires advanced knowledge in a field of science or 
learning customarily acquired by a course of specialized instruction and 
study in an institution of higher education, hospital, or similar 
facility. Professional services means the provision of personal services 
by an employee, including the rendering of advice or consultation, which 
involves application of the skills of a profession as defined in 5 CFR 
2636.305(b)(1) or involves a fiduciary relationship as defined in 5 CFR 
2636.305(b)(2).
    (c) Procedure for requesting approval. (1) Requests for approval of 
outside employment shall be sent to either the DAEO or the Alternate 
DAEO through the employee's normal supervisory channels and shall 
include the following information:
    (i) The name of the person, group, or organization for which the 
outside employment is proposed to be performed;
    (ii) The nature of the service to be performed and the position's 
title, if any;
    (iii) The proposed hours of work (if regularly scheduled) and the 
approximate dates of employment;
    (iv) The employee's explanation as to whether the proposed outside 
employment (including teaching, speaking, or writing) will implicate in 
any way information obtained as a result of the employee's official 
Federal position; and
    (v) The employee's explanation that no Federal property, resources, 
or facilities not available to the general public will be used in 
connection with the outside employment.
    (2) Upon a significant change in the nature or scope of the outside 
employment or in the employee's official position within the FLRA, the 
employee must, within seven calendar days of the change, submit a 
revised request for approval.
    (3) The DAEO or the Alternate DAEO shall grant approval only on a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation, including part 2635 
of this title, or paragraph (d) of this section. The DAEO or the 
Alternate DAEO will advise the employee, in writing, of the approval or 
denial of the request for outside employment and will maintain a record 
of the written request and determination.
    (d) Prohibited outside employment. (1) Employees shall not engage 
in:
    (i) Rendering legal advice regarding, or preparing an individual or 
group in any matter relating to, labor relations in either the private 
or public sector, outside the employee's official duties. This 
prohibition shall not apply to a special Government employee unless he 
or she:
    (A) Has participated personally and substantially as a Government 
employee or special Government employee in the same matter; or
    (B) Has served with the FLRA 60 days or more during the immediately 
preceding period of 365 consecutive days; or
    (C) Any other outside employment that conflicts with the employee's 
official Government duties or responsibilities.
    (2) Exceptions. Nothing in this paragraph (d) prevents an employee 
from:
    (i) Acting, with or without compensation, as an agent or attorney 
for, or otherwise representing, the employee's parents, spouse, child, 
or any other person for whom, or for any estate for which, the employee 
is serving as guardian, executor, administrator, trustee, or other 
personal fiduciary to the extent permitted by 18 U.S.C. 203(d) and 
205(e), or from providing advice or counsel to such persons or estate; 
or
    (ii) Acting, without compensation, as an agent or attorney for, or 
otherwise representing, any person who is the subject of disciplinary, 
loyalty, or other personnel administration proceedings in connection 
with those proceedings, to the extent permitted by 18 U.S.C. 205.
    (e) DAEO's and Alternate DAEO's responsibilities. The FLRA DAEO or 
Alternate DAEO may issue instructions or manual issuances governing the 
submission of requests for approval of outside employment. The 
instructions or

[[Page 911]]

manual issuances may exempt categories of employment from the prior 
approval requirement of this section based on a determination that 
employment within those categories of employment would generally be 
approved and is not likely to involve conduct prohibited by statute or 
Federal regulation, including 5 CFR part 2635. The DAEO or Alternate 
DAEO may include in these instructions or issuances examples of outside 
employment that are permissible or impermissible consistent with this 
part and 5 CFR part 2635.



Sec.  5901.103  Procedure for accomplishing disqualification.

    (a) Disqualifying financial interest. An FLRA employee who is 
required, in accordance with 5 CFR 2635.402(c), to disqualify himself or 
herself from participation in a particular matter to which he or she has 
been assigned shall, notwithstanding the guidance in 5 CFR 
2635.402(c)(1) and (2), provide written notice of disqualification to 
his or her supervisor and the DAEO upon determining that he or she will 
not participate in the matter.
    (b) Disqualification to ensure impartiality. An FLRA employee who is 
required, in accordance with 5 CFR 2635.502(e), to disqualify himself or 
herself from participation in a particular matter involving specific 
parties to which he has been assigned shall, notwithstanding the 
guidance in 5 CFR 2635.502(e)(1) and (2), provide written notice of 
disqualification to his or her supervisor and the DAEO upon determining 
that he will not participate in the matter.
    (c) Disqualification from matters affecting prospective employers. 
An FLRA employee who is required, in accordance with 5 CFR 2635.604(a), 
to disqualify himself or herself from participation in a particular 
matter to which he has been assigned shall, notwithstanding the guidance 
in 5 CFR 2635.604(b) and (c), provide written notice of disqualification 
to his or her supervisor and the DAEO upon determining that he will not 
participate in the matter.
    (d) Withdrawal of notification. An FLRA employee may withdraw 
written notice under paragraphs (a), (b), or (c) of this section upon 
deciding that disqualification from participation in the matter is no 
longer required. A withdrawal of notification shall be in writing and 
provided to the employee's supervisor and the DAEO.

                       PARTS 5902	5999 [RESERVED]

[[Page 913]]



                 CHAPTER L--DEPARTMENT OF TRANSPORTATION




  --------------------------------------------------------------------
Part                                                                Page
6000

[Reserved]

6001            Supplemental standards of ethical conduct 
                    for employees of the Department of 
                    Transportation..........................         915
6002-6099

 [Reserved]

[[Page 915]]

                          PART 6000 [RESERVED]



PART 6001_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF TRANSPORTATION--Table of Contents



Sec.
6001.101 General.
6001.102 Agency designees.
6001.103 Designation of separate agency components.
6001.104 Prohibited financial interests.

    Authority: 5 U.S.C. 301, 7301, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 49 U.S.C. 322; 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; 5 CFR 2635.105, 2635.203(a), 2635.403(a), 2635.807.

    Source: 61 FR 39903, July 31, 1996, unless otherwise noted.



Sec.  6001.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Department of Transportation and supplement 
the Standards of Ethical Conduct for Employees of the Executive Branch 
contained in 5 CFR part 2635. In addition to the standards in 5 CFR part 
2635, employees are subject to the executive branch financial disclosure 
regulations contained in 5 CFR part 2634.



Sec.  6001.102  Agency designees.

    For purposes of 5 CFR part 2635, the following Department of 
Transportation officials are agency designees within the meaning of 5 
CFR 2635.102(b):
    (a) The Designated Agency Ethics Official;
    (b) The Alternate Agency Ethics Official;
    (c) The Deputy Ethics Officials; and
    (d) As designated by Deputy Ethics Officials, legal counsel in 
regional and other offices.



Sec.  6001.103  Designation of separate agency components.

    (a) Pursuant to 5 CFR 2635.203(a), each of the following components 
of the Department of Transportation is designated as a separate agency 
for purpose of the regulations in subpart B of 5 CFR part 2635 governing 
gifts from outside sources and Sec.  2635.807 of this title governing 
teaching, speaking, or writing:
    (1) Federal Aviation Administration;
    (2) Federal Highway Administration;
    (3) Federal Railroad Administration;
    (4) Federal Transit Administration;
    (5) Maritime Administration;
    (6) National Highway Traffic Safety Administration;
    (7) Saint Lawrence Seaway Development Corporation; and
    (8) United States Coast Guard.
    (b) Employees of Department of Transportation components not 
designated as separate agencies, including employees of the Office of 
the Secretary of Transportation, the Research and Special Programs 
Administration, and the Bureau of Transportation Statistics, will be 
treated as employees of DOT which shall be treated as a single agency 
that is separate from the above listed agencies for purposes of 
determining whether the donor of a gift is a prohibited source under 5 
CFR 2635.203(d) and for identifying the DOT employee's agency under 5 
CFR 2635.807 governing teaching, speaking, and writing.



Sec.  6001.104  Prohibited financial interests.

    (a) Federal Railroad Administration (FRA). (1) Except as provided in 
paragraph (c) of this section, no FRA employee shall hold stock or have 
any other financial interest, including outside employment, in a 
railroad company subject to FRA regulation.
    (2) No FRA employee appointed after December 1991 shall hold 
reemployment rights with a railroad company subject to FRA regulation 
after his or her first year of employment.
    (3) No spouse or minor child of an FRA employee shall hold stock or 
any other securities interest in a railroad company subject to FRA 
regulation.
    (b) Federal Aviation Administration (FAA). Except as provided in 
paragraphs (c) and (d) of this section, no FAA employee, or spouse or 
minor child of the employee, may hold stock or have any other securities 
interest in an airline or aircraft manufacturing company, or in a 
supplier of components or parts to an airline or aircraft manufacturing 
company.

[[Page 916]]

    (c) Exception. The prohibitions in paragraphs (a)(1) and (b) of this 
section do not apply to a financial interest in a publicly traded or 
publicly available investment fund, provided that, at the time of the 
employee's appointment or upon initial investment in the fund, whichever 
occurs later, the fund does not have invested, or indicate in its 
prospectus the intent to invest more than 30 percent of its assets in a 
particular transportation or geographic sector and the employee neither 
exercises control nor has the ability to exercise control over the 
financial interests held in the fund.
    (d) Waiver. An agency designee may grant a written waiver from the 
prohibition contained in paragraph (b) of this section, based on a 
determination that the waiver is not inconsistent with 5 CFR part 2635 
or otherwise prohibited by law, and that, under the particular 
circumstances, application of the prohibition is not necessary to avoid 
the appearance of misuse of position or loss of impartiality, or 
otherwise to ensure confidence in the impartiality and objectivity with 
which FAA programs are administered. A waiver under this paragraph may 
be accompanied by appropriate conditions, such as requiring execution of 
a written statement of disqualification. Notwithstanding the granting of 
any waiver, an employee remains subject to the disqualification 
requirements of 5 CFR 2635.402 and 2635.502.
    (e) Period to divest. An individual subject to this section who 
acquires a financial interest subject to this section, as a result of 
gift, inheritance, or marriage, shall divest the interest within a 
period set by the agency designee. Until divestiture, the 
disqualification requirements of 5 CFR 2635.402 and 2635.502 remain in 
effect.

[61 FR 39903, July 31, 1996, as amended at 66 FR 60140, Dec. 3, 2001]

                       PARTS 6002	6099 [RESERVED]

[[Page 917]]



          CHAPTER LII--EXPORT-IMPORT BANK OF THE UNITED STATES




  --------------------------------------------------------------------
Part                                                                Page
6200

[Reserved]

6201            Supplemental standards of ethical conduct 
                    for employees of the Export-Import Bank 
                    of the United States....................         919
6202-6299

 [Reserved]

[[Page 919]]

                          PART 6200 [RESERVED]



PART 6201_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE EXPORT-IMPORT BANK OF THE UNITED STATES--Table of Contents



Sec.
6201.101 General.
6201.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.

    Source: 60 FR 17626, Apr. 7, 1995, unless otherwise noted.



Sec.  6201.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Export-Import Bank of the United States (Bank) 
and supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635 and this part, employees of the Bank are 
subject to the executive branch financial disclosure regulations 
contained in 5 CFR part 2634.



Sec.  6201.102  Prior approval for outside employment.

    (a) Prior approval requirement. Before engaging in any outside 
employment, whether or not for compensation, an employee, other than a 
special Government employee, must obtain the written approval of the 
employee's immediate supervisor and the DAEO. Requests for approval 
shall be forwarded through normal supervisory channels to the DAEO and 
shall include the name of the person, group, or organization for whom 
the work is to be performed; the type of work to be performed; and the 
proposed hours of work and approximate dates of employment.
    (b) Standard for approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation (including 5 CFR 
part 2635). In the case of an employee who wishes to practice a 
profession involving a fiduciary relationship, as defined in 5 CFR 
2636.305(b), approval will be granted only for each individual matter in 
the course of practicing such profession.
    (c) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment or business 
relationship involving the provision of personal services by the 
employee. It includes but is not limited to personal services as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner, trustee or teacher. It also includes writing when done 
under an arrangement with another person for production or publication 
of the written product. It does not, however, include participation in 
the activities of a nonprofit charitable, religious, professional, 
social, fraternal, educational, recreational, public service or civic 
organization, unless such activities involve the provision of 
professional services or advice or are for compensation other than 
reimbursement of expenses.

[60 FR 17626, Apr. 7, 1995. Redesignated at 75 FR 55942, Sept. 15, 2010]

                       PARTS 6202	6299 [RESERVED]

[[Page 921]]



                  CHAPTER LIII--DEPARTMENT OF EDUCATION




  --------------------------------------------------------------------
Part                                                                Page
6300

[Reserved]

6301            Supplemental standards of ethical conduct 
                    for employees of the Department of 
                    Education...............................         923
6302-6399

 [Reserved]

[[Page 923]]

                          PART 6300 [RESERVED]



PART 6301_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF EDUCATION--Table of Contents



Sec.
6301.101 General.
6301.102 Prior approval for certain outside activities.

    Authority: 5 U.S.C. 301, 7301; 5 U.S.C. App. (Ethics in Government 
Act of 1978); E.O. 12674, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 
12731, 3 CFR, 1990 Comp., p. 306; 5 CFR 2635.105, 2635.803.



Sec.  6301.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Department of Education and supplement the 
Standards of Ethical Conduct for Employees of the Executive Branch 
contained in 5 CFR part 2635.

[60 FR 5817, Jan. 30, 1995]



Sec.  6301.102  Prior approval for certain outside activities.

    (a) An employee, other than a special Government employee, must 
obtain written approval prior to engaging--with or without 
compensation--in the following outside activities:
    (1) Except as provided in paragraph (b)(1) of this section, 
providing services, other than clerical services or service as a fact 
witness, on behalf of any other person in connection with a particular 
matter:
    (i) In which the United States is a party;
    (ii) In which the United States has a direct and substantial 
interest; or
    (iii) If the provision of services involves the preparation of 
materials for submission to, or representation before, a Federal court 
or executive branch agency.
    (2) Except as provided in paragraph (b)(2) of this section:
    (i) Serving as an officer, director, trustee, general partner, 
agent, attorney, consultant, contractor, employee, advisory committee 
member, or active participant for a prohibited source; or
    (ii) Engaging in teaching, speaking, consulting, or writing that 
relates to the employee's official duties.
    (b) Unless the services are to be provided for compensation, 
including reimbursement for transportation, lodging and meals:
    (1) Prior approval is not required by paragraph (a)(1) of this 
section to provide services as an agent or attorney for, or otherwise to 
represent, another Department of Education employee who is the subject 
of disciplinary, loyalty, or other personnel administration proceedings 
in connection with those proceedings; and
    (2) Prior approval is not required by paragraph (a)(2) of this 
section:
    (i) To participate in the activities of a:
    (A) Social, fraternal, civic, or political entity;
    (B) Religious entity that is not a prohibited source; or
    (C) Parent-Teacher Association or similar parent organization at the 
employee's child's school or day care center, other than as a member of 
a board of directors or other governing body of the school or center, or 
the educational agency of which it is a part; or
    (ii) To provide direct instructional, social, or medical services to 
students or other individuals.
    (c) An employee who is required by paragraph (a) of this section to 
obtain prior written approval shall submit a written request for 
approval in accordance with Department procedures.
    (d) The cognizant reviewing official shall grant approval unless he 
or she determines that the outside activity is expected to involve 
conduct prohibited by statute or Federal regulations, including 5 CFR 
part 2635.
    (e) For the purposes of this section:
    (1) ``Active participant'' has the meaning set forth in 5 CFR 
2635.502(b)(1)(v).
    (2) ``Prohibited source'' has the meaning set forth in 5 CFR 
2635.203(d).
    (3) ``Relates to the employee's official duties'' means that the 
activity meets one or more of the tests described in 5 CFR 
2635.807(a)(2)(i) (B) through (E). It includes, in relevant part:
    (i) Activities an employee has been invited to participate in 
because of his

[[Page 924]]

or her official position rather than his or her expertise in the subject 
matter;
    (ii) A situation in which an employee has been asked to participate 
in an activity by a person or organization that has interests that may 
be substantially affected by the performance or nonperformance of the 
employee's official duties;
    (iii) Activities that convey information derived from nonpublic 
information gained during the course of Government employment; and
    (iv) Activities that deal in significant part with any matter to 
which the employee is or has been officially assigned in the last year, 
any ongoing or announced Department policy, program or operation, or--in 
the case of certain noncareer employees--any matter that is generally 
related to education or vocational rehabilitation.

    Example 1: A Department employee witnessed an automobile accident 
involving two privately owned cars on her way to work. Some time later 
she is served with a subpoena at home to appear in Federal court as a 
fact witness on behalf of the plaintiff, who was injured in the car 
accident, in a civil case alleging negligence. The Department employee 
is not required to obtain prior approval to comply with the subpoena 
because this civil case is not a matter in which the United States is a 
party or has a direct and substantial interest.
    Example 2: A Department employee would like to prepare Federal tax 
returns for clients on his own time. He is required to obtain prior 
approval to participate in this outside activity because it involves the 
provision of personal services in the preparation of materials for 
submission to the Internal Revenue Service, an executive branch agency.
    Example 3: Arlene, a Department employee, has been asked by a 
Department colleague to represent him, without compensation, in an equal 
employment opportunity complaint he filed alleging that his supervisor 
failed to promote him because he is over 40 years old. Arlene is not 
required to obtain prior approval under this regulation before providing 
such representation because it involves services for another Department 
of Education employee in connection with a personnel administration 
proceeding. However, under 18 U.S.C. section 205, she may only provide 
such representation if it is not inconsistent with faithful performance 
of her duties.
    Example 4: A local school board offers a Department employee a paid 
position as a referee of high school football games. The employee must 
seek prior approval to accept this outside employment because the local 
school board is a prohibited source. If, on the other hand, the employee 
volunteered to coach soccer, without pay, in a sports program sponsored 
by the local school board, no prior approval is required because she 
would be engaging in direct instructional services to students.
    Example 5: A Department program specialist in the Office of 
Elementary and Secondary Education actively pursues an interest in 
painting. The community art league, where he has taken evening art 
classes, asks him if he would be interested in teaching an evening 
course on painting with acrylics. The employee is not required to obtain 
approval prior to accepting this employment. The community art league is 
not a prohibited source, and the subject matter of the course is not 
related to his duties.
    Example 6: A Department employee helps organize local tennis 
tournaments. A national tennis magazine calls and asks her to write a 
monthly column about recreational tennis in her area. The magazine 
offers to pay the employee $500 for each column. The subject matter is 
not related to her duties, and the employee is not required to seek 
prior approval to write this column. However, the employee is still 
subject to all of the Standards of Conduct and other laws that may 
apply, including the limitation on outside earned income for certain 
noncareer employees, as well as the prohibition on using Government 
resources to pursue outside activities and employment.
    Example 7: An employee's elderly parent is retired and receiving 
Social Security benefits. The employee would like to represent his 
parent in an administrative hearing before the Social Security 
Administration concerning a dispute over benefits. The employee must 
obtain prior approval to undertake the activity of representing his 
parent because he is providing services to his parent in a particular 
matter in which the United States is a party. Moreover, the services 
will involve representation before a Federal agency.

[60 FR 5817, Jan. 30, 1995]

                       PARTS 6302	6399 [RESERVED]

[[Page 925]]



              CHAPTER LIV--ENVIRONMENTAL PROTECTION AGENCY




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                    for employees of the Environmental 
                    Protection Agency.......................         927
6402-6499

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[[Page 927]]

                          PART 6400 [RESERVED]



PART 6401_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE ENVIRONMENTAL PROTECTION AGENCY--Table of Contents



Sec.
6401.101 General.
6401.102 Prohibited financial interests.
6401.103 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 42 U.S.C. 203(c)(1); 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; 5 CFR 2635.105, 2635.403(a), 2635.802(a), 2635.803.

    Source: 61 FR 40502, Aug. 2, 1996, unless otherwise noted.



Sec.  6401.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Environmental Protection Agency and supplement 
the Standards of Ethical Conduct for Employees of the Executive Branch 
contained in 5 CFR part 2635.



Sec.  6401.102  Prohibited financial interests.

    (a) The following employees are prohibited from holding the types of 
financial interests described in this section:
    (1) Employees in the Office of Mobile Sources are prohibited from 
having outside employment with or holding stock or any other financial 
interest in manufacturers of automobiles and mobile source pollution 
control equipment.
    (2) Employees in the Office of Pesticide Programs are prohibited 
from having outside employment with or holding stock or any other 
financial interest in companies that manufacture or provide wholesale 
distribution of pesticide products registered by the EPA. These 
restrictions apply to companies with subsidiaries in these areas but do 
not include retail distributors to the general public.
    (3) Employees in the Office of Information Resources Management 
involved with data management contracting or computer contracting are 
prohibited from having outside employment with or holding stock or any 
other financial interest in data management, computer, or information 
processing firms.
    (4) Employees who perform functions or duties under the Surface 
Mining Control and Reclamation Act (such as reviewing Environmental 
Impact Statements of the Office of Surface Mining in the Department of 
Interior) are prohibited by 30 U.S.C. 1211(f) from holding direct or 
indirect interests in underground or surface coal mining operations.
    (i) Implementing regulations of the Office of Surface Mining at 30 
CFR 706.3 define the terms ``direct financial interest'' and ``indirect 
financial interest'' as follows:
    (A) Direct financial interest means ownership or part ownership by 
an employee of land, stocks, bonds, debentures, warrants, a partnership, 
shares, or other holding and also means any other arrangement where the 
employee may benefit from his or her holding in or salary from coal 
mining operations. Direct financial interests include employment, 
pensions, creditor, real property and other financial relationships.
    (B) Indirect financial interest means the same financial 
relationships as for direct ownership but where the employee reaps the 
benefits of such interests, including interests held by the employee's 
spouse, minor child or other relatives, including in-laws, residing in 
the employee's home. The employee will not be deemed to have an indirect 
financial interest if there is no relationship between the employee's 
functions or duties and the coal mining operation in which the spouse, 
minor child or other resident relative holds a financial interest.
    (ii) Violation of the restrictions in this section is punishable by 
a fine of up to $2,500 or imprisonment for not more that one year, or 
both.
    (iii) Employees who perform functions or duties under the Surface 
Mining Control and Reclamation Act are not prohibited thereunder from 
holding interests in excepted investment funds as defined at 5 CFR 
2634.310(c)(2) provided that such funds are widely diversified, that is, 
hold no more than 5% of the value of their portfolios in the securities 
of any one issuer (other than

[[Page 928]]

the United States Government) and no more than 20% in any particular 
economic or geographic sector.
    (5) Members of the Interagency Testing Committee established under 
section 4(e) of the Toxic Substances Control Act (15 U.S.C. 2603(e)) are 
prohibited thereunder from holding any stocks or bonds, or having any 
substantial pecuniary interest, in any person engaged in the 
manufacture, processing, or distribution in commerce of any substance or 
mixture subject to any requirement of the Act or any rule or order 
issued under the Act and, for a period of twelve months after their 
committee service has ceased, are prohibited thereunder from accepting 
employment or compensation from any person subject to any requirement of 
the Act or to any rule or order issued under the Act.
    (i) The statutory prohibitions in this section are enforceable by an 
action for a court order to restrain violations.
    (ii) Members of the Interagency Testing Committee are not prohibited 
thereunder from holding interests in excepted investment funds as 
defined at 5 CFR 2634.310(c)(2) provided that such fund are widely 
diversified, that is, hold no more than 5% of the value of their 
portfolios in the securities of any one issuer (other than the United 
States Government) and no more than 20% in any particular economic 
sector.
    (b) The Designated Agency Ethics Official or the cognizant Deputy 
Ethics Official may grant a written waiver from the prohibitions in 
paragraph (a)(1) through (a)(3) of this section based on a determination 
that the waiver is not inconsistent with part 2635 of this title or 
otherwise prohibited by law and that, under the particular 
circumstances, application of the prohibition is not necessary to avoid 
the appearance of misuse of position or loss of impartiality, or 
otherwise to ensure confidence in the impartiality and objectivity with 
which agency programs are administered. A waiver under this paragraph 
may impose appropriate conditions, such as requiring execution of a 
written disqualification.



Sec.  6401.103  Prior approval for outside employment.

    (a) Requirement for approval. An employee shall obtain approval from 
his or her Deputy Ethics Official before engaging in outside employment, 
with or without compensation, that involves:
    (1) Consulting services;
    (2) The practice of a profession as defined in 5 CFR 2636.305(b)(1);
    (3) Holding State or local public office;
    (4) Subject matter that deals in significant part with the policies, 
programs or operations of EPA or any matter to which the employee 
presently is assigned or to which the employee has been assigned during 
the previous one-year period; or
    (5) The provision of services to or for:
    (i) An EPA contractor or subcontractor;
    (ii) The holder of an EPA assistance agreement or subagreement; or
    (iii) A firm regulated by the EPA office or Region in which the 
employee serves.
    (b) Form and content of request. The employee's request for approval 
of outside employment shall be submitted in writing to his or her Deputy 
Ethics Official. The request shall be sent through the employee's 
immediate supervisor (for the supervisor's information) and shall 
include:
    (1) Employee's name, title and grade;
    (2) Nature of the outside activity, including a full description of 
the services to be performed and the amount of compensation expected;
    (3) The name and business of the person or organization for which 
the work will be done (in cases of self-employment, indicate the type of 
services to be rendered and estimate the number of clients or customers 
anticipated during the next 6 months);
    (4) The estimated time to be devoted to the activity;
    (5) Whether the service will be performed entirely outside of normal 
duty hours (if not, estimate the number of hours of absence from work 
required);
    (6) The employee's statement that no official duty time or 
Government property, resources, or facilities not available to the 
general public will be used in connection with the outside employment;

[[Page 929]]

    (7) The basis for compensation (e.g., fee, per diem, per annum, 
etc.);
    (8) The employee's statement that he or she has read, is familiar 
with, and will abide by the restrictions described in 5 CFR part 2635 
and Sec.  6401.102; and
    (9) An identification of any EPA assistance agreements or contracts 
held by a person to or for whom services would be provided.
    (c) Standard for approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635 and Sec.  6401.102. The decision must be in writing.
    (d) Keeping the record up-to-date. If there is a change in the 
nature or scope of the duties or services performed or the nature of the 
employee's business, the employee must submit a revised request for 
approval. Where an employee transfers to an organization for which a 
different Deputy Ethics Official has responsibility, the employee must 
obtain approval from the new Deputy Ethics Official. In addition, each 
approved request is valid only for five years unless the employee's 
Deputy Ethics Official specifies a longer time period.
    (e) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment, business 
relationship, or activity involving the provision of personal services 
by the employee, whether or not for compensation. It includes but is not 
limited to personal services as an officer, director, employee, agent, 
attorney, consultant, contractor, general partner, trustee, teacher, or 
speaker. It includes writing when done under an arrangement with another 
person for production or publication of the written product. It does 
not, however, include participation in the activities of nonprofit 
charitable, religious, professional, social, fraternal, educational, 
recreational, public service, or civic organizations, unless such 
activities are for compensation other than reimbursement for expenses.

                       PARTS 6402	6499 [RESERVED]

[[Page 931]]



               CHAPTER LV--NATIONAL ENDOWMENT FOR THE ARTS




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6500

[Reserved]

6501            Supplemental standards of ethical conduct 
                    for employees of the National Endowment 
                    for the Arts............................         933
6502-6599

 [Reserved]

[[Page 933]]

                          PART 6500 [RESERVED]



PART 6501_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL ENDOWMENT FOR THE ARTS--Table of Contents



Sec.
6501.101 General.
6501.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301, 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.

    Source: 68 FR 52682, Sept. 5, 2003, unless otherwise noted.



Sec.  6501.101  General.

    In accordance with 5 CFR 2635.105, the regulations of this part 
apply to employees of the National Endowment for the Arts (NEA) and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. In addition to the 
regulations in 5 CFR part 2635 and this part, employees of the NEA are 
subject to the executive branch employee responsibilities and conduct 
regulations at 5 CFR part 735, the executive branch financial disclosure 
regulations at 5 CFR part 2634, and the executive branch financial 
interests regulations at 5 CFR part 2640.



Sec.  6501.102  Prior approval for outside employment.

    (a) Before engaging in any outside employment with a prohibited 
source within the meaning of 5 CFR 2635.203(d), whether or not for 
compensation, an employee other than a special Government employee must 
obtain written approval from his or her immediate supervisor and the 
Designated Agency Ethics Official. The request for approval shall 
include the following:
    (1) The name of the person, group or other organization for whom the 
work is to be performed, the type of work to be performed, and the 
proposed hours of work and approximate dates of employment; and
    (2) A description of the employee's NEA responsibilities and the 
employee's certification that the outside employment will not depend on 
nonpublic information obtained as a result of the employee's official 
Government position and that no official duty time or Government 
property, resources, or facilities not available to the general public 
will be used in connection with the outside employment.
    (b) Approval shall be granted only upon determination that the 
outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635.
    (c) Outside employment means any form of compensated or 
uncompensated non-Federal employment or business relationship involving 
the provision of personal services by the employee. It includes, but is 
not limited to personal services such as an officer, director, employee, 
agent, attorney, consultant, contractor, general partner, trustee, 
teacher or speaker. It includes writing when done under an arrangement 
with another person for production or publication of the written 
product.

                       PARTS 6502	6599 [RESERVED]

[[Page 935]]



           CHAPTER LVI--NATIONAL ENDOWMENT FOR THE HUMANITIES




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Part                                                                Page
6600

[Reserved]

6601            Supplemental standards of ethical conduct 
                    for employees of the National Endowment 
                    for the Humanities......................         937
6602-6699

 [Reserved]

[[Page 937]]

                          PART 6600 [RESERVED]



PART 6601_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES--Table of Contents



Sec.
6601.101 General.
6601.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301, 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.

    Source: 68 FR 52684, Sept. 5, 2003, unless otherwise noted.



Sec.  6601.101  General.

    In accordance with 5 CFR part 2635.105, the regulations of this part 
apply to employees of the National Endowment for the Humanities (NEH) 
and supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. In addition to the 
regulations in 5 CFR part 2635 and this part, employees of the NEH are 
subject to the executive branch employee responsibilities and conduct 
regulations at 5 CFR part 735, the executive branch financial disclosure 
regulations at 5 CFR part 2634, and the executive branch financial 
interests regulations at 5 CFR part 2640.



Sec.  6601.102  Prior approval for outside employment.

    (a) Before engaging in any outside employment with a prohibited 
source within the meaning of 5 CFR 2635.203(d), whether or not for 
compensation, an employee other than a special Government employee must 
obtain written approval from his or her immediate supervisor and the 
Designated Agency Ethics Official. The request for approval shall 
include the following:
    (1) A brief description of the employee's official duties, a brief 
description of the proposed outside employment (including the name of 
the person, group or other organization for whom the work is to be 
performed), and a brief description of the employee's discipline or 
inherent area of expertise based on experience or educational 
background; and
    (2) Responses to the following questions:
    (i) Whether the proposed outside employment will draw on non-public 
information or pertain to a matter to which the employee is presently 
assigned or has been assigned within the last year;
    (ii) Whether the proposed outside employment pertains to an ongoing 
or announced agency policy or program;
    (iii) Whether the proposed outside employment will involve teaching 
a course which is part of the established curriculum of an accredited 
institution of higher education, secondary school, elementary school, or 
an education or training program sponsored by a Federal, State or local 
government entity;
    (iv) Whether the sponsor of the proposed outside employment has any 
interests before the NEH that may be substantially affected by the 
performance or nonperformance of the employee's duties;
    (v) Whether the employee intends to refer to his or her official NEH 
position during the proposed outside employment, and, if so, the text of 
any disclaimers that he or she will use; and
    (vi) Whether the employee will receive any payment or compensation 
for the proposed activity, and, if so, how much.
    (b) Approval shall be granted only upon determination that the 
outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635.
    (c) Outside employment means any form of compensated or 
uncompensated non-Federal employment or business relationship involving 
the provision of personal services by the employee. It includes, but is 
not limited to, personal services such as acting as an officer, 
director, employee, agent, attorney, consultant, contractor, general 
partner, trustee, teacher or speaker. It includes writing done under 
arrangement with another person for production or publication of any 
written product.

                       PARTS 6602	6699 [RESERVED]

[[Page 939]]



              CHAPTER LVII--GENERAL SERVICES ADMINISTRATION




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                    for employees of the General Services 
                    Administration..........................         941
6702-6799

 [Reserved]

[[Page 941]]

                          PART 6700 [RESERVED]



PART 6701_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE GENERAL SERVICES ADMINISTRATION--Table of Contents



Sec.
6701.101 General.
6701.102 Prohibition on solicited sales to subordinates.
6701.103 Prohibited purchases of property sold by GSA.
6701.104 Prohibited purchases of real estate by certain GSA employees 
          involved in the acquisition or disposal of real estate.
6701.105 Taking or disposing of Government property.
6701.106 Prior approval for outside employment.
6701.107 Reporting waste, fraud, abuse and corruption.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.702, 2635.703, 2635.802, 2635.803.

    Source: 61 FR 56401, Nov. 1, 1996, unless otherwise noted.



Sec.  6701.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the General Services Administration (GSA) and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch (Standards) contained in 5 CFR part 2635. In addition 
to the executive branch-wide Standards in 5 CFR part 2635 and this part, 
GSA employees are subject to the executive branch financial disclosure 
regulations contained in 5 CFR part 2634.



Sec.  6701.102  Prohibition on solicited sales to subordinates.

    A GSA employee shall not engage in solicitation of sales, on or off 
duty, to any GSA employee under his supervision, at any level. This 
prohibition applies, but is not limited to, solicitation for the sale of 
insurance, stock, mutual funds, real estate, computer equipment and any 
other commodities, goods or services except:
    (a) The one-time sale of the employee's personal property or 
privately owned dwelling; or
    (b) Sales made in the course of outside employment of GSA employees 
in retail stores and under other circumstances not involving 
solicitation.



Sec.  6701.103  Prohibited purchases of property sold by GSA.

    (a) General prohibition. Except as provided in paragraphs (b) and 
(c) of this section, no GSA employee, or spouse or minor child of a GSA 
employee, shall purchase, directly or indirectly Government property, 
real or personal, being sold by GSA.
    (b) Exception. The prohibition in paragraph (a) of this section does 
not apply to the purchase of foreign gifts deposited with the agency 
pursuant to 5 U.S.C. 7342, that an employee may purchase pursuant to 41 
CFR part 101-49.
    (c) Waiver. An employee may make a purchase otherwise prohibited by 
paragraph (a) of this section where a written waiver of the prohibition 
has been given to the employee by the Administrator of GSA or his 
designee. Such a waiver may be granted only upon a determination that 
the waiver is not otherwise prohibited by law and that, in the mind of a 
reasonable person with knowledge of the particular circumstances, the 
purchase of the property will not raise a question as to whether the 
employee has used his official position or nonpublic information to 
obtain an advantageous purchase or create an appearance of loss of 
impartiality in the performance of the employee's duties.



Sec.  6701.104  Prohibited purchases of real estate by certain GSA employees 
involved in the acquisition or disposal of real estate.

    (a) General prohibition. Except as provided in paragraphs (b) and 
(c) of this section, employees who personally and substantially 
participate in or have official responsibility for the acquisition or 
disposal of real estate or interests therein, shall not directly or 
indirectly purchase or participate as an agent or otherwise in the 
purchase of any real estate or interest therein.

[[Page 942]]

    (b) Exception. The prohibition in paragraph (a) of this section does 
not apply to an employee's purchase of real estate for use as his 
personal or other residential property, such as a vacation home.
    (c) Waiver. An employee may make a purchase otherwise prohibited by 
this section where a written waiver of the prohibition has been given to 
the employee by the employee's immediate supervisor, with the advice of 
a Deputy Standards of Conduct Counsellor or the Designated Agency Ethics 
Official. Such a waiver may be granted only if a determination is made 
that the waiver is not otherwise prohibited by law or regulation, and 
that in the mind of a reasonable person with knowledge of the particular 
circumstances, the purchase of such real estate or interest therein will 
not raise a question as to whether the employee will use his official 
position or nonpublic information to obtain an advantageous purchase or 
create an appearance of loss of impartiality in the performance of the 
employee's duties.



Sec.  6701.105  Taking or disposing of Government property.

    An employee shall not, directly or indirectly, take or dispose of, 
or allow the taking or disposal of, Government property, unless 
authorized to do so. For purposes of this section, property remains 
Government property until disposed of in accordance with applicable 
rules and regulations.



Sec.  6701.106  Prior approval for outside employment.

    (a) Approval requirement. A GSA employee, other than a special 
Government employee, shall obtain written approval from his immediate 
supervisor prior to engaging in outside employment with a prohibited 
source, with or without compensation.
    (b) Form of request for approval. A request for approval of outside 
employment shall include, at a minimum, the following:
    (1) The employee's name, location and occupational title;
    (2) A brief description of the employee's official duties;
    (3) The nature of the outside employment, including a full 
description of the specific duties or services to be performed;
    (4) The name and address of the prospective outside employer for 
which work will be done; and
    (5) A statement that the employee currently has no official duties 
involving a matter that affects the outside employer and will disqualify 
himself from future participation in matters that could directly affect 
the outside employer.
    (c) Standard for approval. Approval shall be granted unless a 
determination is made that the outside employment is expected to involve 
conduct prohibited by statute or regulation, including 5 CFR part 2635 
and this part.
    (d) Definitions. For purposes of this section:
    (1) Employment means any form of non-Federal employment or business 
relationship involving the provision of personal services by the 
employee. It includes but is not limited to personal services as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner, trustee, teacher, or speaker. It includes writing done 
under an arrangement with another person for production or publication 
of the written product. It does not, however, include participation in 
the activities of a nonprofit charitable, religious, professional, 
social, fraternal, educational, recreational, public service, or civic 
organization, unless the participation involves the provision of 
professional services or advice for compensation other than 
reimbursement for actual expenses.
    (2) Prohibited source has the meaning in 5 CFR 2635.203(d), and 
includes any person who:
    (i) Is seeking official action by GSA;
    (ii) Does business or seeks to do business with GSA;
    (iii) Conducts activities regulated by GSA;
    (iv) Has interests that may be substantially affected by performance 
or nonperformance of the employee's official duties; or
    (v) Is an organization a majority of whose members are described in 
paragraphs (d)(2)(i) through (iv) of this section.

    Note to Sec.  6701.106: An employee may obtain advice from an agency 
ethics official as to

[[Page 943]]

whether a potential employer is a prohibited source.



Sec.  6701.107  Reporting waste, fraud, abuse and corruption.

    GSA employees shall disclose immediately any waste, fraud, abuse, 
and corruption to appropriate authorities, such as the Office of 
Inspector General.

                       PARTS 6702	6799 [RESERVED]

[[Page 945]]



     CHAPTER LVIII--BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM




  --------------------------------------------------------------------
Part                                                                Page
6800

[Reserved]

6801            Supplemental standards of ethical conduct 
                    for employees of the Board of Governors 
                    of the Federal Reserve System...........         947
6802-6899

 [Reserved]

[[Page 947]]

                          PART 6800 [RESERVED]



PART 6801_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM--Table of Contents



Sec.
6801.101 Purpose.
6801.102 Definitions.
6801.103 Prohibited financial interests.
6801.104 Speculative dealings. [Reserved]
6801.105 Prohibition on preferential terms from regulated institutions.
6801.106 Prohibition on supervisory employees' seeking credit from 
          institutions involved in work assignments.
6801.107 Disqualification of supervisory employees from matters 
          involving lenders.
6801.108 Restrictions resulting from employment of family members.
6801.109 Prior approval for compensated outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 12 U.S.C. 244, 248; 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; 
5 CFR 2635.105, 2635.403(a), 2635.502, 2635.803.

    Source: 61 FR 53828, Oct. 16, 1996, unless otherwise noted.



Sec.  6801.101  Purpose.

    In accordance with 5 CFR 2635.105, the regulations in this part 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch found at 5 CFR part 2635. They apply to members and 
other employees of the Board of Governors of the Federal Reserve System 
(``Board'').



Sec.  6801.102  Definitions.

    For purposes of this part:
    (a) Affiliate means any company that controls, is controlled by, or 
is under common corporate control with another company.
    (b) (1) Debt or equity interest includes secured and unsecured 
bonds, debentures, notes, securitized assets, commercial paper, and 
preferred and common stock. The term encompasses both current and 
contingent ownership interests therein; any such beneficial or legal 
interest derived from a trust; any right to acquire or dispose of any 
long or short position in debt or equity interests; any interests 
convertible into debt or equity interests; and any options, rights, 
warrants, puts, calls, straddles, and derivatives with respect thereto.
    (2) Debt or equity interest does not include deposits; credit union 
shares; any future interest created by someone other than the employee, 
his or her spouse, or dependent; or any right as a beneficiary of an 
estate that has not been settled.
    (c) Dependent child means an employee's son, daughter, stepson, or 
stepdaughter if:
    (1) Unmarried, under the age of 21, and living in the employee's 
household; or
    (2) Claimed as a ``dependent'' on the employee's income tax return.
    (d) Depository institution means a bank, trust company, thrift 
institution, or any institution that accepts deposits, including a bank 
chartered under the laws of a foreign country.
    (e) Employee means an officer or employee of the Board, including a 
Board member. It does not include a special Government employee.
    (f) Primary government securities dealer means a firm with which the 
Federal Reserve conducts its open market operations.
    (g) Supervisory employee means an employee who is a member of the 
professional staff at the Board with responsibilities in the area of 
banking supervision and regulation.



Sec.  6801.103  Prohibited financial interests.

    (a) Prohibited interests. Except as permitted by this section, an 
employee, or an employee's spouse or minor child, shall not own or 
control, directly or indirectly, any debt or equity interest in:
    (1) A depository institution or any of its affiliates; or
    (2) A primary government securities dealer or any of its affiliates, 
if such employee has regular, ongoing access to Class I Federal Open 
Market Committee information.
    (b) Exceptions. The prohibition in paragraph (a) of this section 
does not apply to the ownership or control of a debt or equity interest 
in the following:
    (1) Nonbanking holding companies. A publicly traded holding company 
that:

[[Page 948]]

    (i) Owns a bank and either the holding company or the bank is exempt 
under the Bank Holding Company Act of 1956, 12 U.S.C. 1841 et seq., (for 
example, a credit card bank, a nonbank bank or a grandfathered bank 
holding company), and the holding company's predominant activity is not 
the ownership or operation of banks and thrifts;
    (ii) Owns a thrift and its predominant activity is not the ownership 
or operation of banks and thrifts; or
    (iii) Owns a primary government securities dealer and its 
predominant activity is not the ownership or operation of banks, thrifts 
or securities firms.
    (2) Mutual funds. A publicly traded or publicly available mutual 
fund or other collective investment fund if:
    (i) The fund does not have a stated policy of concentration in the 
financial services industry; and
    (ii) Neither the employee nor the employee's spouse exercises or has 
the ability to exercise control over the financial interests held by the 
fund or their selection.
    (3) Pension plans. A widely held, diversified pension or other 
retirement fund that is administered by an independent trustee.
    (c) Waivers. The Board's Designated Agency Ethics Official, in 
consultation with Division management, may grant a written waiver 
permitting the employee to own or control a debt or equity interest 
prohibited by paragraph (a) of this section if:
    (1) Extenuating circumstances exist, such as that ownership or 
control was acquired:
    (i) Prior to Federal Reserve employment;
    (ii) Through inheritance, gift, merger, acquisition, or other change 
in corporate structure, or otherwise without specific intent on the part 
of the employee, spouse, or minor child to acquire the debt or equity 
interest; or
    (iii) By an employee's spouse as part of a compensation package in 
connection with the spouse's employment or prior to marriage to the 
employee;
    (2) The employee makes a prompt and complete written disclosure of 
the interest;
    (3) The employee's disqualification from participating in any 
particular matter having a direct and predictable effect on the 
institution or any of its affiliates does not unduly interfere with the 
full performance of the employee's duties; and
    (4) Granting the waiver would be consistent with Division policy.
    (d) Disqualification. If an employee or an employee's spouse or 
minor child holds an interest in an entity under paragraph (b)(1) or (c) 
of this section, the employee must consult the Designated Agency Ethics 
Official in order to determine whether the employee must be disqualified 
from participating in any particular matter involving that entity or 
affiliate under the conflicts of interest rules of the Office of 
Government Ethics.

[61 FR 53828, Oct. 16, 1996, as amended at 64 FR 68616, Dec. 8, 1999]



Sec.  6801.104  Speculative dealings. [Reserved]



Sec.  6801.105  Prohibition on preferential terms from regulated institutions.

    An employee may not accept a loan from, or enter into any other 
financial relationship with, an institution regulated by the Board, if 
the loan or financial relationship is governed by terms more favorable 
than would be available in like circumstances to members of the public.



Sec.  6801.106  Prohibition on supervisory employees' seeking credit 
from institutions involved in work assignments.

    (a) Prohibition on supervisory employee's seeking credit. (1) A 
supervisory employee may not, on his or her own behalf, or on behalf of 
his or her spouse or child or anyone else (including any business or 
nonprofit organization), seek or accept credit from, or renew or 
renegotiate credit with, a depository institution or any of its 
affiliates if the institution or affiliate is a party to an application, 
enforcement action, investigation, or other particular matter involving 
specific parties pending before the Board and:
    (i) The supervisory employee is assigned to the matter; or
    (ii) The supervisory employee is aware of the pendency of the matter

[[Page 949]]

and knows that he or she will participate in the matter by action, 
advice or recommendation.
    (2) The prohibition in paragraph (a)(1) of this section also applies 
for three months after the supervisory employee's participation in the 
matter has ended.
    (b) Credit sought by spouse and other related persons. A supervisory 
employee must disqualify himself or herself from participating (by 
action, advice or recommendation) in any application, enforcement 
action, investigation or other particular matter involving specific 
parties to which a depository institution or any of its affiliates is a 
party as soon as the supervisory employee learns that any of the 
following related persons are seeking or have sought or accepted credit 
from, or have renewed or renegotiated credit with, the depository 
institution or any of its affiliates while the matter is pending before 
the Board:
    (1) The employee's spouse or dependent child;
    (2) A company or business if the employee or the employee's spouse 
or dependent child owns or controls more than 10 percent of its equity; 
or
    (3) A partnership if the employee, or the employee's spouse or 
dependent child is a general partner.
    (c) Exception. The prohibition in paragraph (a) of this section and 
the disqualification requirement in paragraph (b) of this section do not 
apply with respect to credit obtained through the use of a credit card 
or overdraft protection on terms and conditions available to the public.
    (d) Waivers. The Board's Designated Agency Ethics Official, after 
consulting with the relevant division director, may grant a written 
waiver from the prohibition in paragraph (a) of this section, or the 
disqualification requirement in paragraph (b) of this section, based on 
a determination that participation in matters otherwise prohibited by 
this section would not create an appearance of loss of impartiality or 
use of public office for private gain, and would not otherwise be 
inconsistent with the Office of Government Ethics' Standards of Ethical 
Conduct for Employees of the Executive Branch (5 CFR part 2635) or 
prohibited by law.



Sec.  6801.107  Disqualification of supervisory employees 
from matters involving lenders.

    (a) Disqualification required. A supervisory employee may not 
participate by action, advice or recommendation in any application, 
enforcement action, investigation, or other particular matter involving 
specific parties to which a depository institution or its affiliate is a 
party if any of the following are indebted to the depository institution 
or any of its affiliates:
    (1) The employee;
    (2) The spouse or dependent child of the employee;
    (3) A company or business if the employee or the employee's spouse 
or dependent child owns or controls more than 10 percent of its equity; 
or
    (4) A partnership if the employee or the employee's spouse or 
dependent child is a general partner.
    (b) Exceptions--(1) Consumer credit on nonpreferential terms. 
Disqualification of a supervisory employee is not required by paragraph 
(a) of this section for the following types of indebtedness if payment 
on the indebtedness is current and the indebtedness is on terms and 
conditions offered to the public:
    (i) Credit extended through the use of a credit card;
    (ii) Credit extended through use of an overdraft protection line;
    (iii) Amortizing consumer credit (e.g., home mortgage loans, 
automobile loans); and
    (iv) Credit extended under home equity lines of credit.
    (2) Indebtedness of a spouse or dependent child. Disqualification is 
not required with respect to any indebtedness of the employee's spouse 
or dependent child, or a company, business or partnership in which the 
spouse or dependent child has an interest described in paragraphs (a)(3) 
and (a)(4) of this section, if:
    (i) The indebtedness represents the sole financial interest or 
responsibility of the spouse, child, company, business or partnership 
and is not derived from the employee's income, assets or activities; and

[[Page 950]]

    (ii) The employee has no knowledge of the identity of the lender.
    (c) Waivers. The Board's Designated Agency Ethics Official, after 
consulting with the relevant Division director, may grant a written 
waiver from the disqualification requirement in paragraph (a) of this 
section using the authorization process set forth in the Office of 
Government Ethics' Standards of Ethical Conduct at 5 CFR 2635.502(d).



Sec.  6801.108  Restrictions resulting from employment of family members.

    A supervisory employee may not participate in any particular matter 
to which a depository institution or its affiliate is a party if the 
depository institution or affiliate employs his or her spouse, child, 
parent or sibling unless the supervising officer, with the concurrence 
of the Board's Designated Agency Ethics Official, has authorized the 
employee to participate in the matter using the authorization process 
set forth in the Office of Government Ethics' Standards of Ethical 
Conduct at 5 CFR 2635.502(d).



Sec.  6801.109  Prior approval for compensated outside employment.

    (a) Approval requirement. An employee shall obtain prior written 
approval from his or her Division director (or the Division director's 
designee) and the concurrence of the Board's Designated Agency Ethics 
Official before engaging in compensated outside employment.
    (b) Standard for approval. Approval will be granted unless a 
determination is made that the prospective outside employment is 
expected to involve conduct prohibited by statute or Federal regulation, 
including 5 CFR part 2635 and this part.
    (c) Definition of employment. For purposes of this section, the term 
compensated outside employment means any form of compensated non-Federal 
employment or business relationship involving the provision of personal 
services by the employee. It includes, but is not limited to, personal 
services as an officer, director, employee, agent, attorney, consultant, 
contractor, general partner, trustee, teacher or speaker.

                       PARTS 6802	6899 [RESERVED]

[[Page 951]]



       CHAPTER LIX--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION




  --------------------------------------------------------------------
Part                                                                Page
6900

[Reserved]

6901            Supplemental standards of ethical conduct 
                    for employees of the National 
                    Aeronautics and Space Administration....         953
6902-6999

 [Reserved]

[[Page 953]]

                          PART 6900 [RESERVED]



PART 6901_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION--Table of Contents



Sec.
6901.101 General.
6901.102 [Reserved]
6901.103 Outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 51 U.S.C. 20113(a); 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; 5 CFR 2635.105, 2635.403(a), 2635.802(a), 2635.803.

    Source: 59 FR 49336, Sept. 28, 1994, unless otherwise noted.



Sec.  6901.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the National Aeronautics and Space Administration 
(NASA) and supplement the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635 and this part, employees are subject to the 
executive branch financial disclosure regulations contained in 5 CFR 
part 2634, and to additional regulations regarding their conduct 
contained in 5 CFR part 735 and 14 CFR part 1207.



Sec.  6901.102  [Reserved]



Sec.  6901.103  Outside employment.

    (a) General. A NASA employee shall not engage in outside employment 
prohibited by paragraph (c) of this section and shall obtain approval 
before engaging in the outside employment activities specified in 
paragraph (d) of this section.
    (b) Definitions. Unless a term is otherwise defined in this part, 
the definitions set forth in 5 CFR part 2635 apply to terms used in this 
section. In addition, for purposes of this section:
    (1) Outside employment means any form of compensated or 
uncompensated non-Federal employment or business relationship involving 
the provision of personal services by the employee. It includes, but is 
not limited to, personal services as an officer, director, employee, 
agent, attorney, consultant, contractor, general partner, trustee, 
teacher, or speaker. It includes writing when done under an arrangement 
with another person for production or publication of the written 
product. It does not, however, include participation in the activities 
of a nonprofit charitable, religious, professional, social, fraternal, 
educational, recreational, public service, or civic organization, unless 
the organization is a prohibited source or unless such activities 
involve the provision of professional services or advice, or are for 
compensation other than reimbursement of expenses.
    (2) Profession has the meaning set forth in 5 CFR 2636.305(b)(1).
    (3) Student intern means a student employed through a student 
internship program implemented by the Office of Personnel Management 
(OPM).
    (c) Prohibited outside employment. A NASA employee, other than a 
special Government employee or a student intern, shall not engage in 
outside employment with the following:
    (1) A NASA contractor, subcontractor, or grantee in connection with 
work performed by that entity for NASA; or
    (2) A party to a Space Act agreement, Commercial Launch Act 
agreement, or other agreement to which NASA is a party pursuant to 
specific statutory authority, if the employment is in connection with 
work performed under that agreement.
    (d) Prior approval for outside employment. A NASA employee, other 
than a special Government employee, shall request and obtain approval 
before engaging in the following outside employment activities:
    (1) Teaching, speaking, writing, or editing, unless the subject 
matter pertains to the private interests of the employee, such as a 
hobby, cultural activity, or a professional pursuit unrelated to the 
employee's official duties;
    (2) The practice of a profession or the rendering of professional 
consulting services;
    (3) The management or conduct of a business in which the employee or 
the employee's spouse has an ownership interest, if that business 
performs, or may seek to perform, work (other than

[[Page 954]]

routine consumer transactions) for the Federal Government or for a NASA 
contractor, grantee, or other party to an agreement with NASA;
    (4) Holding State or local public office, whether by election or 
appointment;
    (5) Employment with a NASA contractor, subcontractor, or grantee;
    (6) Employment with a party to a Space Act agreement, Commercial 
Launch Act agreement, or other agreement to which NASA is a party 
pursuant to specific statutory authority;
    (7) Serving as an officer, trustee, or member of a board, 
directorate, or other such body of a for profit organization or of a 
nonprofit organization that is a prohibited source; or
    (8) Employment which involves the practice of a NASA-owned invention 
or the performance of experimental, developmental, research, design, or 
engineering work that relates to the official duties of such employee.
    (e) Prior approval requested by employee. Even when not required by 
paragraph (d) of this section, a NASA employee may request prior 
approval using the procedures set forth in this section.
    (f) Form of request for approval. A request for approval of outside 
employment shall be in writing and shall include the following:
    (1) The employee's name and occupational title;
    (2) The nature of the employment, including a full description of 
the specific duties or services to be performed and a statement 
explaining any relationship between the outside activity and the 
official duties of the employee;
    (3) The name and address of the person or organization for which 
work will be done;
    (4) The estimated total time that will be devoted to the activity. 
If the employment is on a continuing basis, indicate the estimated 
number of hours per year; for other employment, indicate the anticipated 
beginning and ending date;
    (5) A statement as to whether the work can be performed entirely 
outside of the employee's regular duty hours and, if not, the estimated 
number of hours of absence from work that will be required;
    (6) Whether the employee will receive compensation for the outside 
activity, and, if the employee is a covered noncareer employee as 
defined by 5 CFR 2636.303, the amount of compensation to be received; 
and
    (7) A statement that the employee currently has no official duties 
involving a matter that affects the outside employer and will disqualify 
from future participation in matters that could directly affect the 
outside employer.
    (g) Approval of requests--(1) When required to obtain approval prior 
to commencing outside employment pursuant to paragraph (d) of this 
section, a NASA employee shall receive approval from the employee's 
immediate supervisor. Additional authority to approve requests is as 
follows:
    (i) Center Directors and Deputy Center Directors shall receive 
approval by the Associate Administrator;
    (ii) Center employees shall receive approval from the Center 
Director or a person designated to act for the Center Director; and
    (iii) Headquarters employees shall receive approval from the 
employee's Official-in-Charge.
    (2) Prior to approval, the Office of the General Counsel shall 
review requests by Headquarters employees, Center Directors, Deputy 
Center Directors, and Center Chief Counsel. All other requests shall be 
reviewed by the Center Chief Counsel's office, and for Office of 
Inspector General employees, by the Counsel to the Inspector General.
    (3) Standard for approval. Approval will be granted unless a 
determination is made that the prospective outside employment is 
expected to involve conduct prohibited by statute or Federal regulation, 
including 5 CFR part 2635 and this part.
    (4) Scope of approval. Approval will be for a period not to exceed 
five years. Upon a significant change in the nature or scope of the 
outside employment or in the employee's NASA position, the employee 
shall submit a revised request for approval.
    (5) Notification of approval or disapproval. Employees will be 
notified in writing of the action taken on their requests.

[[Page 955]]

    (6) Records of requests. All requests for approval will be 
maintained in the local human resources/personnel office where the 
requesting employee works, or alternatively by the local NASA legal 
office upon the determination of the Center Chief Counsel and by the 
Office of the General Counsel upon the determination of the General 
Counsel.

[59 FR 49336, Sept. 28, 1994, as amended at 79 FR 7566, Feb. 10, 2014]

                       PARTS 6902	6999 [RESERVED]

[[Page 957]]



                CHAPTER LX--UNITED STATES POSTAL SERVICE




  --------------------------------------------------------------------
Part                                                                Page
7000

[Reserved]

7001            Supplemental standards of ethical conduct 
                    for employees of the United States 
                    Postal Service..........................         959
7002-7099

 [Reserved]

[[Page 959]]

                          PART 7000 [RESERVED]



PART 7001_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE UNITED STATES POSTAL SERVICE--Table of Contents



Sec.
7001.101 General.
7001.102 Restrictions on outside employment and business activities.
7001.103 Statutory prohibition against interests in contracts to carry 
          mail and acting as agent for contractors.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 39 U.S.C. 401; 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; 
5 CFR 2635.105, 2635.802, and 2635.803.

    Source: 60 FR 47240, Sept. 11, 1995, unless otherwise noted.



Sec.  7001.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635, as applied to employees 
of the United States Postal Service (Postal Service). Postal Service 
employees are subject, in addition to the standards in 5 CFR part 2635 
and this part, to the executive branch financial disclosure regulations 
contained in 5 CFR part 2634, and to any rules of conduct issued 
separately by the Postal Service, including but not limited to 
regulations contained in 39 CFR part 447, the Postal Service's Employee 
and Labor Relations Manual, and the Postal Service's Procurement Manual.



Sec.  7001.102  Restrictions on outside employment and business activities.

    (a) Prohibited outside employment and business activities. No Postal 
Service employee shall:
    (1) Engage in outside employment or business activities with or for 
a person, including oneself, engaged in:
    (i) The manufacture of any uniform or other product required by the 
Postal Service for use by its employees or customers;
    (ii) The transportation of mail under Postal Service contract to or 
from the postal facility at which the employee works, or to or from a 
postal facility within the delivery area of a post office in which the 
employee works;
    (iii) Providing consultation, advice, or any subcontracting service, 
with respect to the operations, programs, or procedures of the Postal 
Service, to any person who has a contract with the Postal Service or who 
the employee has reason to believe will compete for such a contract; or
    (iv) The operation of a commercial mail receiving agency registered 
with the Postal Service, or the delivery outside the mails of any type 
of mailable matter, except daily newspapers; or
    (2) Engage in any sales activity, including the solicitation of 
business or the receipt of orders, for oneself or any other person, 
while on duty or in uniform, or at any postal facility.
    (b) Prior approval for outside employment and business activities--
(1) Requirement for approval. A Postal Service employee shall obtain 
approval, in accordance with paragraph (b)(2) of this section, prior to:
    (i) Engaging in outside employment or business activities with or 
for any person with whom the employee has official dealings on behalf of 
the Postal Service; or
    (ii) Engaging in outside employment or business activities, with or 
for a person, including oneself, whose interests are:
    (A) Substantially dependent upon, or potentially affected to a 
significant degree by, postal rates, fees, or classifications; or
    (B) Substantially dependent upon providing goods or services to, or 
for use in connection with, the Postal Service.
    (2) Submission and contents of request for approval. An employee who 
wishes to engage in outside employment or business activities for which 
prior approval is required by paragraph (b)(1) of this section shall 
submit a written request for approval to the Postal Service Ethical 
Conduct Officer or appropriate delegate. The request shall be 
accompanied by a statement from the employee's supervisor briefly 
summarizing the employee's duties and stating any workplace concerns 
raised by the employee's request for approval. The request for approval 
shall include:

[[Page 960]]

    (i) A brief description of the employee's official duties;
    (ii) The name of the outside employer, or a statement that the 
employee will be engaging in employment or business activities on his or 
her own behalf;
    (iii) The type of employment or business activities in which the 
outside employer, if any, is engaged;
    (iv) The type of services to be performed by the employee in 
connection with the outside employment or business activities;
    (v) A description of the employee's official dealings, if any, with 
the outside employer on behalf of the Postal Service; and
    (vi) Any additional information requested by the Ethical Conduct 
Officer or delegate that is needed to determine whether approval should 
be granted.
    (3) Standard for approval. The approval required by paragraph (b)(1) 
of this section shall be granted only upon a determination that the 
outside employment or business activity will not involve conduct 
prohibited by statute or federal regulation, including 5 CFR part 2635, 
which includes, among other provisions, the principle stated at 5 CFR 
2635.101(b)(14) that employees shall endeavor to avoid any actions 
creating the appearance that they are violating the law or the ethical 
standards set forth in part 2635.
    (c) Definitions. For purposes of this section:
    (1) Outside employment or business activity means any form of 
employment or business, whether or not for compensation. It includes, 
but is not limited to, the provision of personal services as officer, 
employee, agent, attorney, consultant, contractor, trustee, teacher, or 
speaker. It also includes, but is not limited to, engagement as 
principal, proprietor, general partner, holder of a franchise, operator, 
manager, or director. It does not include equitable ownership through 
the holding of publicly traded shares of a corporation.
    (2) A person having interests substantially dependent upon, or 
potentially affected to a significant degree by, postal rates, fees, or 
classifications includes a person:
    (i) Primarily engaged in the business of publishing or distributing 
a publication mailed at second-class rates of postage;
    (ii) Primarily engaged in the business of sending advertising, 
promotional, or other material on behalf of other persons through the 
mails;
    (iii) Engaged in a business that depends substantially upon the 
mails for the solicitation or receipt of orders for, or the delivery of, 
goods or services; or
    (iv) Who is, or within the past 4 years has been, a party to a 
proceeding before the Postal Rate Commission.
    (3) A person having interests substantially dependent upon providing 
goods or services to or for use in connection with the Postal Service 
includes a person:
    (i) Providing goods or services under contract with the Postal 
Service that can be expected to provide revenue exceeding $100,000 over 
the term of the contract and that provides five percent or more of the 
person's gross income for the person's current fiscal year; or
    (ii) Substantially engaged in the business of preparing items for 
others for mailing through the Postal Service.



Sec.  7001.103  Statutory prohibition against interests in contracts 
to carry mail and acting as agent for contractors.

    Section 440 of title 18, United States Code, makes it unlawful for 
any Postal Service employee to become interested in any contract for 
carrying the mail, or to act as agent, with or without compensation, for 
any contractor or person offering to become a contractor in any business 
before the Postal Service.

                       PARTS 7002	7099 [RESERVED]

[[Page 961]]



               CHAPTER LXI--NATIONAL LABOR RELATIONS BOARD




  --------------------------------------------------------------------
Part                                                                Page
7100

[Reserved]

7101            Supplemental standards of ethical conduct 
                    for employees of the National Labor 
                    Relations Board.........................         963
7102-7199

 [Reserved]

[[Page 963]]

                          PART 7100 [RESERVED]



PART 7101_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL LABOR RELATIONS BOARD--Table of Contents



Sec.
7101.101 General.
7101.102 Prior approval for outside employment.
7101.103 Standard for accomplishing disqualification, disqualifying 
          financial interests.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 29 U.S.C. 141, 156; E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., 
p. 215, as modified by E.O. 12731, 55 FR 42457, 3 CFR, 1990 Comp., p. 
306; 5 CFR 2635.105, 2635.402(c), 2635.803, and 2638.202(b).

    Source: 62 FR 6447, Feb. 12, 1997, unless otherwise noted.



Sec.  7101.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to Board members and other employees of the National 
Labor Relations Board (NLRB) and supplement the Standards of Ethical 
Conduct for Employees of the Executive Branch at 5 CFR 2635. Board 
Members and other employees are subject, in addition, to the executive 
branch financial disclosure regulations contained in 5 CFR part 2634.
    (b) Ethics program responsibilities--(1) Designated Agency Ethics 
Official. The Director, Division of Administration, is designated under 
5 CFR 2638.202(b) as the NLRB's Designated Agency Ethics Official with 
responsibilities that include:
    (i) Acting as liaison with the Office of Government Ethics with 
regard to all aspects of the NLRB's ethics program;
    (ii) Coordinating the NLRB's counseling and advisory service under 5 
CFR 2635.107;
    (iii) Collecting, reviewing, evaluating and, where applicable, 
making publicly available the public financial disclosure reports filed 
by NLRB officers and employees;
    (iv) Upon request, advising NLRB officials responsible for reviewing 
the Confidential Financial Disclosure Reports filed by designated NLRB 
employees; and
    (v) Coordinating and maintaining the NLRB's ethics education 
program.
    (2) Alternate Designated Agency Ethics Official. The Deputy Director 
of Administration is designated under 5 CFR 2638.202(b) as the NLRB's 
Alternate Designated Agency Ethics Official.
    (c) Agency designees. Except as provided in Sec.  7101.102, the 
Designated Agency Ethics Official shall serve as the NLRB's designee for 
purposes of making the determinations, granting the approvals, and 
taking other actions under 5 CFR part 2635 and this part.



Sec.  7101.102  Prior approval for outside employment.

    (a) General Requirement. Before engaging in compensated or 
uncompensated outside employment, an employee must obtain written 
approval:
    (1) From the Board of General Counsel to engage in the private 
practice of law; or
    (2) From the employee's Chief Counsel, Regional Director, Branch 
Chief, or the equivalent for outside employment not involving the 
practice of law.
    (b) Procedure for requesting approval (1) The approval required by 
paragraph (a) of this section shall be requested in writing in advance 
of engaging in outside employment, including the outside practice of 
law.
    (2) The request for approval to engage in the outside practice of 
law or in other outside employment shall be submitted to the appropriate 
official as set forth in paragraph (a) of this section, and shall set 
forth, at a minimum:
    (i) The name of the employer;
    (ii) The nature of the legal activity or other work to be performed;
    (iii) The estimated duration; and
    (iv) The amount of compensation to be received.
    (3) Upon a significant change in the nature of scope of the outside 
employment or in the employee's official position, the employee shall 
submit a revised request for approval.

[[Page 964]]

    (c) Standard for approval. (1) Approval shall be granted unless the 
agency designee determines that the outside employment is expected to 
involve conduct prohibited by statute or Federal regulation, including 5 
CFR part 2635.
    (2) The agency designee may consult with the Designated Agency 
Ethics Official to ensure that the request for outside employment meets 
the standard in paragraph (c)(1) of this section.
    (d) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment or business 
relationship involving the provision of personal services by the 
employee. It includes, but is not limited to personal services as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner, trustee, teacher, or speaker. It includes writing when 
done under an arrangement with another person for production or 
publication of the written product. It does not, however, include 
participation in the activities of a nonprofit charitable, religious, 
professional, social, fraternal, educational, recreational, public 
service or civic organization, unless such activities involve the 
provision of professional services or advice or are for compensation 
other than reimbursement of expenses.



Sec.  7101.103  Standard for accomplishing disqualification; 
disqualifying financial interest.

    An NLRB employee who is required, in accordance with 5 CFR 
2635.402(c), to disqualify himself from participation in a particular 
matter to which he has been assigned shall, notwithstanding the guidance 
in 5 CFR 2635.402(c) (1) and (2), provide written notice of 
disqualification to his or her supervisor upon determining that he or 
she will not participate in the matter.

                       PARTS 7102	7199 [RESERVED]

[[Page 965]]



          CHAPTER LXII--EQUAL EMPLOYMENT OPPORTUNITY COMMISSION




  --------------------------------------------------------------------
Part                                                                Page
7200

[Reserved]

7201            Supplemental standards of ethical conduct 
                    for employees of the Equal Employment 
                    Opportunity Commission..................         967
7202-7299

 [Reserved]

[[Page 967]]

                          PART 7200 [RESERVED]



PART 7201_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION--Table of Contents



Sec.
7201.101 General.
7201.102 Prohibited outside employment.
7201.103 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.403(a), 2635.802 and 2635.803.

    Source: 61 FR 7066, Feb. 26, 1996, unless otherwise noted.



Sec.  7201.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to all employees of the Equal Employment Opportunity Commission 
(EEOC), including members of the Commission and the General Counsel, and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635.



Sec.  7201.102  Prohibited outside employment.

    (a) No employee of the Equal Employment Opportunity Commission may 
engage in outside employment with a person who is currently and 
substantially affected by the employee's performance of his or her 
official duties because the person is a party or representative of a 
party to a particular matter involving specific parties.
    (b) No employee of the Equal Employment Opportunity Commission, 
other than a special Government employee, may receive compensation for 
representational services, or the rendering of advice or analysis, 
regarding any equal employment law or its application.
    (c) No employee of the Equal Employment Opportunity Commission, 
other than a special Government employee, may engage in outside 
employment involving a particular matter pending at EEOC or an equal 
employment opportunity matter in which EEOC or the Federal government is 
a party. An employee may, however, with prior approval, provide 
uncompensated behind-the-scenes assistance to immediate family members 
in matters pending at EEOC or equal employment opportunity matters in 
which EEOC or the Federal government is a party. An employee may also, 
with prior approval, represent without compensation another EEOC 
employee in an administrative equal employment opportunity complaint 
against EEOC.

[61 FR 7066, Feb. 26, 1996, as amended at 68 FR 52486, Sept. 4, 2003]



Sec.  7201.103  Prior approval for outside employment.

    (a) Before engaging in any outside employment, with or without 
compensation, an employee of the Equal Employment Opportunity Commission 
must obtain written approval from his or her Deputy Ethics Counselor or 
designee.
    (b) In addition to approval under paragraph (a) of this section, an 
employee must obtain prior written approval from the Designated Agency 
Ethics Official or designee to engage in:
    (1) Compensated outside employment;
    (2) The uncompensated practice of law; or
    (3) Uncompensated outside employment that involves representation or 
the rendering of advice or analysis regarding any equal employment law, 
or serving as an officer or director of an organization whose activities 
are devoted substantially to equal employment opportunity matters.
    (c) Approval will not be granted if the outside employment is 
expected to involve conduct inconsistent with or prohibited by a statute 
or Federal regulation, including 5 CFR part 2635 and this part.
    (d) For purposes of this section, ``employment'' means any form of 
non-Federal employment or business relationship involving the provision 
of personal services by the employee. It includes, but is not limited to 
personal services as an officer, director, employee, agent, attorney, 
consultant, contractor, general partner, trustee,

[[Page 968]]

teacher or speaker. It includes writing when done under an arrangement 
with another person for production or publication of the written 
product. It does not, however, include participation in the activities 
of a nonprofit charitable, religious, professional, social, fraternal, 
educational, recreational, public service or civic organization unless:
    (1) The employee's participation involves the provision of 
professional services or advice;
    (2) The employee will receive compensation other than reimbursement 
of expenses; or
    (3) The organization's activities are devoted substantially to 
matters relating to equal employment law and the employee will serve as 
officer or director of the organization.

                       PARTS 7202	7299 [RESERVED]

[[Page 969]]



                CHAPTER LXIII--INTER-AMERICAN FOUNDATION




  --------------------------------------------------------------------
Part                                                                Page
7300

[Reserved]

7301            Supplemental standards of ethical conduct 
                    for employees of the Inter-American 
                    Foundation..............................         971
7302-7399

 [Reserved]

[[Page 971]]

                          PART 7300 [RESERVED]



PART 7301_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE INTER-AMERICAN FOUNDATION--Table of Contents



Sec.
7301.101 General.
7301.102 Prior approval for outside teaching, speaking and writing.

    Authority: 5 U.S.C. 7301; 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; 5 CFR 2635.105, 2635.803; 5 CFR 2638.202(b).



Sec.  7301.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to employees of the Inter-American Foundation, with the 
exception of members of the Foundation's Board of Directors and Advisory 
Council, and supplement the Standards of Ethical Conduct for Employees 
of the Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635, directors and other employees are subject 
to the executive branch financial disclosure regulations contained in 5 
CFR part 2634.
    (b) Designated agency ethics official. For purposes of this part and 
otherwise as required by 5 CFR 2638.202, the General Counsel of the 
Inter-American Foundation shall serve as the designated agency ethics 
official. The Deputy General Counsel shall serve as the alternate agency 
ethics official.

[59 FR 3772, Jan. 27, 1994]



Sec.  7301.102  Prior approval for outside teaching, speaking and writing.

    (a) Before engaging in outside teaching, speaking or writing, for 
compensation, an employee, with the exception of members of the 
Foundation's Board of Directors and Advisory Council, shall obtain prior 
written approval from the designated agency ethics official or the 
alternate agency ethics official.
    (b) Approval shall be granted only upon a determination that the 
outside teaching, speaking or writing is not expected to involve conduct 
prohibited by statute or Federal regulation, including 5 CFR part 2635.

[59 FR 3772, Jan. 27, 1994]

                       PARTS 7302	7399 [RESERVED]

[[Page 973]]



              CHAPTER LXIV--MERIT SYSTEMS PROTECTION BOARD




  --------------------------------------------------------------------
Part                                                                Page
7400

[Reserved]

7401            Supplemental standards of ethical conduct 
                    for employees of the Merit Systems 
                    Protection Board........................         975
7402-7499

 [Reserved]

[[Page 975]]

                          PART 7400 [RESERVED]



PART 7401_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE MERIT SYSTEMS PROTECTION BOARD--Table of Contents



Sec.
7401.101 General.
7401.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 1204(h), 7301; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 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; 
5 CFR 2635.105, 2635.803.

    Source: 72 FR 26534, May 10, 2007, unless otherwise noted.



Sec.  7401.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to employees of the Merit Systems Protection Board 
(MSPB) and supplement the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635.
    (b) Cross-references. In addition to 5 CFR part 2635 and this part, 
MSPB employees are required to comply with implementing guidance and 
procedures issued by the MSPB in accordance with 5 CFR 2635.105(c). MSPB 
employees are also subject to the regulations concerning executive 
branch financial disclosure contained in 5 CFR part 2634, the 
regulations concerning executive branch financial interests contained in 
5 CFR part 2640, and the regulations concerning executive branch 
employee responsibilities and conduct contained in 5 CFR part 735.



Sec.  7401.102  Prior approval for outside employment.

    (a) General requirement. Before engaging in any outside employment, 
with or without compensation, an employee of the MSPB, other than a 
special Government employee, must obtain written approval from the 
employee's supervisor and the concurrence of the Designated Agency 
Ethics Official (DAEO) or the alternate DAEO, except to the extent that 
the MSPB DAEO or alternate DAEO has issued an instruction or manual 
pursuant to paragraph (e) of this section exempting an activity or class 
of activities from this requirement. Nonetheless, special Government 
employees remain subject to other statutory and regulatory provisions 
governing their outside activities, including 18 U.S.C. 203(c) and 
205(c), as well as applicable provisions of 5 CFR part 2635.
    (b) Definition of employment. For purposes of this section, 
employment means any form of non-Federal employment or business 
relationship involving the provision of personal services, whether or 
not for compensation. It includes, but is not limited to, services as an 
officer, director, employee, agent, advisor, attorney, consultant, 
contractor, general partner, trustee, teacher, or speaker. It includes 
writing when done under an arrangement with another person for 
production or publication of the written product. The definition does 
not include participation in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service or civic organization, unless:
    (1) The employee will receive compensation other than reimbursement 
of expenses;
    (2) The organization's activities are devoted substantially to 
matters relating to the employee's official duties as defined in 5 CFR 
2635.807(a)(2)(i)(B) through (E) and the employee will serve as officer 
or director of the organization; or
    (3) The activities will involve the provision of consultative or 
professional services. Consultative services means the provision of 
personal services by an employee, including the rendering of advice or 
consultation, which requires advanced knowledge in a field of science or 
learning customarily acquired by a course of specialized instruction and 
study in an institution of higher education, hospital, or similar 
facility. Professional services means the provision of personal services 
by an employee, including the rendering of advice or consultation, which 
involves application of the skills of a profession as defined in 5 CFR 
2636.305(b)(1) or involves a fiduciary relationship as defined in 5 CFR 
2636.305(b)(2).

    Note to Sec.  7401.102(b): There is a special approval requirement 
set out in both 18 U.S.C.

[[Page 976]]

203(d) and 205(e), respectively, for certain representational activities 
otherwise covered by the conflict of interest restrictions on 
compensation and activities of employees in claims against and other 
matters affecting the Government. Thus, an employee who wishes to act as 
agent or attorney for, or otherwise represent his parents, spouse, 
child, or any person for whom, or any estate for which, he is serving as 
guardian, executor, administrator, trustee, or other personal fiduciary 
in such matters must obtain the approval required by law of the 
Government official responsible for the employee's appointment in 
addition to the regulatory approval required in this section.

    (c) Procedure for requesting approval. (1) The approval required by 
paragraph (a) of this section shall be requested by e-mail or other form 
of written correspondence in advance of engaging in outside employment 
as defined in paragraph (b) of this section.
    (2) The request for approval to engage in outside employment or 
certain other activities shall set forth, at a minimum:
    (i) The name of the employer or organization;
    (ii) The nature of the legal activity or other work to be performed;
    (iii) The title of the position; and
    (iv) The estimated duration of the outside employment.
    (3) Upon a significant change in the nature or scope of the outside 
employment or in the employee's official position within the MSPB, the 
employee must, within 7 calendar days of the change, submit a revised 
request for approval.
    (d) Standard for approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635.
    (e) DAEO's and alternate DAEO's responsibilities. The MSPB DAEO or 
alternate DAEO may issue instructions or manual issuances governing the 
submission of requests for approval of outside employment. The 
instructions or manual issuances may exempt categories of employment 
from the prior approval requirement of this section based on a 
determination that employment within those categories of employment 
would generally be approved and is not likely to involve conduct 
prohibited by statute or Federal regulation, including 5 CFR part 2635. 
The DAEO or alternate DAEO may include in these instructions or 
issuances examples of outside employment that are permissible or 
impermissible consistent with this part and 5 CFR part 2635.

                       PARTS 7402	7499 [RESERVED]

[[Page 977]]



        CHAPTER LXV--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT




  --------------------------------------------------------------------
Part                                                                Page
7500

[Reserved]

7501            Supplemental standards of ethical conduct 
                    for employees of the Department of 
                    Housing and Urban Development...........         979
7502-7599

 [Reserved]

[[Page 979]]

                          PART 7500 [RESERVED]



PART 7501_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT--Table of Contents



Sec.
7501.101 Purpose.
7501.102 Definitions.
7501.103 Waivers.
7501.104 Prohibited financial interests.
7501.105 Outside activities.
7501.106 Bureau instructions and designation of separate agency 
          component.

    Authority: 5 U.S.C. 301, 7301, 7351, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 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; 
5 CFR 2635.105, 2635.203(a), 2635.403(a), 2635.803, 2635.807.

    Source: 77 FR 46604, Aug. 6, 2012, unless otherwise noted.



Sec.  7501.101  Purpose.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Department of Housing and Urban Development 
(HUD or Department) and supplement the Standards of Ethical Conduct for 
Employees of the Executive Branch contained in 5 CFR part 2635. 
Employees are required to comply with 5 CFR part 2635, this part, and 
any additional rules of conduct that the Department is authorized to 
issue.



Sec.  7501.102  Definitions.

    For purposes of this part, and otherwise as indicated, the following 
definitions shall apply:
    Affiliate means any entity that controls, is controlled by, or is 
under common control with another entity.
    Agency designee, as used also in 5 CFR part 2635, means the 
Associate General Counsel for Ethics and Personnel Law, the Assistant 
General Counsel for the Ethics Law Division, and the HUD Regional 
Counsels.
    Agency ethics official, as used also in 5 CFR part 2635, means the 
agency designees as specified above.
    Bureau means the Office of the Inspector General.
    Bureau Ethics Counselor means the General Counsel for the Bureau.
    Deputy Bureau Ethics Counselor means the Bureau employee or 
employees who the Bureau Ethics Counselor has delegated responsibility 
to act under Sec.  7501.106 for the Bureau.
    Designated Agency Ethics Official (DAEO) means the General Counsel 
of HUD or the Deputy General Counsel for Operations in the absence of 
the General Counsel.
    Employment means any compensated or uncompensated (including 
volunteer work for others while off-duty) form of non-federal activity 
or business relationship, including self-employment, that involves the 
provision of personal services by the employee. It includes, but is not 
limited to, personal services as an officer, director, employee, agent, 
attorney, consultant, contractor, general partner, trustee, teacher, or 
speaker. It includes writing when done under an arrangement with another 
person for production or publication of the written product.
    Subsidized by the Department means any grant, loan, cooperative 
agreement, or other form of assistance provided by the Department, 
including the insurance or guarantee of a loan.

[77 FR 46604, Aug. 6, 2012, as amended at 78 FR 56128, Sept. 12, 2013]



Sec.  7501.103  Waivers.

    The Designated Agency Ethics Official, or the Bureau Ethics 
Counselor for a Bureau employee may waive any provision of this part 
upon finding that the waiver will not result in conduct inconsistent 
with 5 CFR part 2635 and is not otherwise prohibited by law and that 
application of the provision is not necessary to ensure public 
confidence in the Department's impartial and objective administration of 
its programs. Each waiver shall be in writing and supported by a 
statement of the facts and findings upon which it is based and may 
impose appropriate conditions, such as requiring the employee's 
execution of a written disqualification statement. A waiver will be 
considered only in response to a written waiver request submitted to an 
agency ethics official. The waiver request should include:

[[Page 980]]

    (a) The requesting employee's Branch, Unit, and a detailed 
description of his or her official duties;
    (b) The nature and extent of the proposed waiver;
    (c) A detailed statement of the facts supporting the request; and
    (d) The basis for the request, such as undue hardship or other 
exigent circumstances.



Sec.  7501.104  Prohibited financial interests.

    (a) General requirement. This section applies to all HUD employees 
except special Government employees. Except as provided in paragraph (b) 
of this section, the employee, or the employee's spouse or minor child, 
shall not directly or indirectly receive, acquire, or own:
    (1) Federal Housing Administration (FHA) debentures or certificates 
of claim;
    (2) A financial interest in a project, including any single family 
dwelling or unit, which is subsidized by the Department, except to the 
extent such subsidy represents assistance on the employee's principal 
residence. The definition of ``financial interest'' is found at 5 CFR 
2635.403(c);
    (3)(i) Any Department subsidy provided pursuant to Section 8 of the 
United States Housing Act of 1937, as amended (42 U.S.C. 1437f), to or 
on behalf of a tenant of property owned by the employee or the 
employee's spouse or minor child. However, such subsidy is permitted 
when:
    (A) The employee, or the employee's spouse or minor child acquires, 
without specific intent as through inheritance, a property in which a 
tenant receiving such a subsidy already resides;
    (B) The tenant receiving such a subsidy lived in the rental property 
before the employee worked for the Department;
    (C) The tenant receiving such a subsidy is a parent, child, 
grandchild, or sibling of the employee;
    (D) The employee's, or the employee's spouse or minor child's, 
rental property has an incumbent tenant who has not previously received 
such a subsidy and becomes the beneficiary thereof; or
    (E) The location of the rental property is in a Presidentially 
declared emergency or natural disaster area and the employee receives 
prior written approval from an agency designee.
    (ii) The exception provided by paragraph (a)(3)(i) of this section 
continues only as long as:
    (A) The tenant continues to reside in the property; and
    (B) There is no increase in that tenant's rent upon the commencement 
of subsidy payments other than normal annual adjustments under the 
Section 8 program.
    (b) Exception to prohibition for certain interests. Nothing in this 
section prohibits the employee, or the employee's spouse or minor child 
from directly or indirectly receiving, acquiring, or owning:
    (1) A financial interest in a publicly available or publicly traded 
investment fund that includes financial interests prohibited by 
paragraph (a)(2) of this section, so long as the employee neither 
exercises control nor has the ability to exercise control over the fund 
or the financial interests held in the fund;
    (2) Mortgage insurance provided pursuant to section 203 of the 
National Housing Act (12 U.S.C. 1709) on the employee's principal 
residence and any one other single family residence. Employees must 
adhere to the procedures established by the Assistant Secretary for 
Housing--FHA Commissioner in order to obtain FHA insurance;
    (3) Department-owned single family property. Employees must adhere 
to the procedures established by the Assistant Secretary for Housing--
FHA Commissioner in order to purchase a HUD-held property;
    (4) Employment compensation and benefit packages provided by the 
employer of an employee's spouse that include financial interests 
prohibited by paragraph (a)(2) of this section; or
    (5) Government National Mortgage Association (GNMA) securities.
    (c) Reporting and divestiture. An employee must report, in writing, 
to the appropriate agency ethics official, any interest prohibited under 
paragraph (a) of this section acquired prior to the commencement of 
employment with the Department or without specific intent, as through 
gift, inheritance, or

[[Page 981]]

marriage, within 30 days from the date of the start of employment or 
acquisition of such interest. Such interest must be divested within 90 
days from the date reported unless waived by the Designated Agency 
Ethics Official in accordance with Sec.  7501.103.

[77 FR 46604, Aug. 6, 2012, as amended at 78 FR 56128, Sept. 12, 2013]



Sec.  7501.105  Outside activities.

    (a) Prohibited outside activities. Subject to the exceptions set 
forth in paragraph (b) of this section, HUD employees, except special 
Government employees, shall not engage in:
    (1) Employment with a business related to real estate or 
manufactured housing including, but not limited to, real estate 
brokerage, management and sales, architecture, engineering, mortgage 
lending, property insurance, appraisal services, title search services, 
construction, construction financing, land planning, or real estate 
development;
    (2) The operation or management of investment properties to the 
extent that it rises to the level of a real estate-related business. HUD 
will determine whether an employee is operating or managing investment 
properties to an extent that it rises to the level of a real estate 
business based on the totality of the circumstances, and will consider 
whether the employee maintains an office; advertises or otherwise 
solicits clients or business; hires staff or employees; uses business 
stationary or other similar materials; files the business as a 
corporation, limited liability company, partnership, or other type of 
business association with a state government; establishes a formal or 
informal association with an existing business; hires a management 
company; and the nature and number of its investment properties;
    (3) Employment with a person or entity who registered as a lobbyist 
or lobbyist organization pursuant to 2 U.S.C 1603(a) and engages in 
lobbying activity concerning the Department;
    (4) Employment as an officer or director with a Department-approved 
mortgagee, a lending institution, or an organization that services 
securities for the Department; or
    (5) Employment with the Federal Home Loan Bank System or any 
affiliate thereof.
    (b) Exceptions to employment prohibitions. The prohibitions set 
forth in paragraph (a) of this section do not apply to:
    (1) Serving as an officer or a member of the Board of Directors of:
    (i) A Federal Credit Union;
    (ii) A cooperative, condominium association, or homeowners 
association for a housing project that is not subject to regulation by 
the Department or, if so regulated, in which the employee personally 
resides; or
    (iii) An entity designated in writing by the Designated Agency 
Ethics Official.
    (2) Holding a real estate agent's license; however, use of the 
license is limited as provided by paragraph (c) of this section.
    (c) Prior approval requirement. (1) Employees, except special 
Government employees, shall obtain the prior written approval of an 
Agency Ethics Official before accepting compensated or uncompensated 
employment:
    (i) As an officer, director, trustee, or general partner of, or in 
any other position of authority with a prohibited source, as defined at 
5 CFR 2635.203(d);
    (ii) With a state or local government;
    (iii) In the same professional field as that of the employee's 
official position; or
    (iv) As a real estate agent in relation to purchasing or selling a 
single family property for use as the employee's primary residence, or 
the primary residence of the employee's immediate family member.
    (2) Approval shall be granted unless the conduct is inconsistent 
with 5 CFR part 2635 or this part.
    (d) Liaison representative. An employee designated to serve in an 
official capacity as the Department's liaison representative to an 
outside organization is not engaged in an outside activity to which this 
section applies. Notwithstanding, an employee may be designated to serve 
as the Department's liaison representative only as authorized by law, 
and as approved by the Department under applicable procedures.

[[Page 982]]



Sec.  7501.106  Bureau instructions and designation 
of separate agency component.

    (a) Bureau instructions. With the concurrence of the Designated 
Agency Ethics Official, the Bureau Ethics Counselor is authorized, 
consistent with 5 CFR 2635.105(c), to designate Deputy Bureau Ethics 
Counselors, to make a determination, issue explanatory guidance, and 
establish procedures necessary to implement this part, subpart I of 5 
CFR part 2634, and 5 CFR part 2635 for the Bureau.
    (b) Designation of separate agency component. Pursuant to 5 CFR 
2635.203(a), the Office of the Inspector General is designated as a 
separate agency for purposes of the regulations contained in subpart B 
of 5 CFR part 2635, governing gifts from outside sources; and 5 CFR 
2635.807, governing teaching, speaking, or writing.

                       PARTS 7502	7599 [RESERVED]

[[Page 983]]



       CHAPTER LXVI--NATIONAL ARCHIVES AND RECORDS ADMINISTRATION




  --------------------------------------------------------------------
Part                                                                Page
7600

[Reserved]

7601            Supplemental standards of ethical conduct 
                    for employees of the National Archives 
                    and Records Administration..............         985
7602-7699

 [Reserved]

[[Page 985]]

                          PART 7600 [RESERVED]



PART 7601_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL ARCHIVES AND RECORDS ADMINISTRATION--Table of Contents



Sec.
7601.101 General.
7601.102 Prior approval of outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.

    Source: 61 FR 40505, Aug. 5, 1996, unless otherwise noted.



Sec.  7601.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the National Archives and Records Administration 
(NARA) and supplement the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635 and this part, employees of NARA are 
subject to the executive branch financial disclosure regulations 
contained in 5 CFR part 2634.



Sec.  7601.102  Prior approval of outside employment.

    (a) Prior approval requirement. An employee, other than a special 
Government employee, must obtain written approval before engaging in any 
outside employment, whether or not for compensation. Requests for 
approval shall be submitted in accordance with procedures set forth in 
the NARA Administrative Procedures Manual, ADMIN. 201, copies of which 
can be obtained from the NARA designated agency ethics official.
    (b) Standard of approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635.
    (c) Scope of approval. Approval will be for a period not to exceed 
three years, after which renewed approval must be sought in accordance 
with this section. Upon a significant change in the nature or scope of 
the outside employment or in the employee's NARA position, the employee 
shall submit a revised request for approval.
    (d) Definition of employment. For purposes of this section, 
employment means any form of non-Federal employment or business 
relationship involving the provision of personal services by the 
employee. It includes, but is not limited to, personal services as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner, trustee, teacher, or speaker. It includes writing when 
done under an arrangement with another person for production or 
publication of the written product. It does not, however, include 
participation in the activities of a nonprofit charitable, religious, 
professional, social, fraternal, educational, recreational, public 
service, or civic organization, unless the participation involves the 
provision of professional services or advice for compensation other than 
reimbursement for actual expenses.

                       PARTS 7602	7699 [RESERVED]

[[Page 987]]



         CHAPTER LXVII--INSTITUTE OF MUSEUM AND LIBRARY SERVICES




  --------------------------------------------------------------------
Part                                                                Page
7700

[Reserved]

7701            Supplemental standards of ethical conduct 
                    for employees of the Institute of Museum 
                    and Library Services....................         989
7702-7799

 [Reserved]

[[Page 989]]

                          PART 7700 [RESERVED]



PART 7701_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES--Table of Contents



Sec.
7701.101 Purpose.
7701.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301, 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.

    Source: 68 FR 17878, Apr. 14, 2003, unless otherwise noted.



Sec.  7701.101  Purpose.

    In accordance with 5 CFR 2635.105, the regulations of this part 
apply to employees of the Institute of Museum and Library Services 
(IMLS) and supplement the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635. In addition to the 
regulations in 5 CFR part 2635 and this part, employees of IMLS are 
subject to the executive branch employee responsibilities and conduct 
regulations at 5 CFR part 735, the executive branch financial disclosure 
regulations at 5 CFR part 2634, and the executive branch financial 
interests regulations at 5 CFR part 2640.



Sec.  7701.102  Prior approval for outside employment.

    (a) Before engaging in any outside employment with a prohibited 
source within the meaning of 5 CFR 2635.203(d), whether or not for 
compensation, an employee other than a special Government employee must 
obtain written approval from his or her immediate supervisor and the 
Designated Agency Ethics Official. The request for approval shall 
include the following:
    (1) The name of the person, group, or organization for which the 
work is to be performed, the type of work to be performed, and the 
proposed hours of work and approximate dates of employment;
    (2) A brief description of the employee's official IMLS duties and a 
brief description of the employee's discipline or inherent area of 
expertise based on experience of educational background;
    (3) The employee's certification that the outside employment will 
not depend on information obtained as a result of the employee's 
official Government position and that no official duty time or 
Government property, resources, or facilities not available to the 
general public will be used in connection with the outside employment; 
and
    (4) Responses to the following:
    (i) Whether the proposed outside employment will pertain to a matter 
to which the employee is presently assigned or has been assigned within 
the last year;
    (ii) Whether the proposed outside employment pertains to an ongoing 
or announced agency policy or program;
    (iii) Whether the sponsor of the proposed outside employment has any 
interests before IMLS that may be substantially affected by the 
performance or nonperformance of the employee's duties;
    (iv) Whether the employee intends to refer to his or her official 
IMLS position during the proposed outside employment and if so, the text 
of any disclaimers that he or she will use;
    (v) Whether the employee will receive any payment or compensation 
for the proposed outside employment; and
    (vi) Whether the proposed outside employment will involve teaching a 
course which is part of the established curriculum of an accredited 
institution of higher education, secondary school, elementary school, or 
an education or training program sponsored by a Federal, State or local 
government entity.
    (b) Approval shall be granted only upon determination that the 
outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635 and this part.
    (c) Outside employment means any form of compensated or 
uncompensated non-Federal employment or business relationship involving 
the provision of personal services by the employee. It includes, but is 
not limited to, personal

[[Page 990]]

services such as acting as an officer, director, employee, trustee, 
agent, attorney, consultant, contractor, general partner, teacher or 
speaker. It includes writing when done under an arrangement with another 
person for production or publication of the written product.

                       PARTS 7702	7799 [RESERVED]

[[Page 991]]



               CHAPTER LXVIII--COMMISSION ON CIVIL RIGHTS




  --------------------------------------------------------------------
Part                                                                Page
7800

[Reserved]

7801            Supplemental standards of ethical conduct 
                    for employees of the United States 
                    Commission on Civil Rights..............         993
7802-7899

 [Reserved]

[[Page 993]]

                          PART 7800 [RESERVED]



PART 7801_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE UNITED STATES COMMISSION ON CIVIL RIGHTS--Table of Contents



Sec.
7801.101 General.
7801 .102 Prior approval for outside employment

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 42 U.S.C. 1975b(d); 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; 5 CFR 2635.105, 2635.803.

    Source: 73 FR 33662, June 13, 2008, unless otherwise noted.



Sec.  7801.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to employees of the United States Commission on Civil 
Rights (Commission) and supplement the Standards of Ethical Conduct for 
Employees of the Executive Branch contained at 5 CFR part 2635. 
Employees of the Commission are required to comply with this part, 5 CFR 
part 2635, the executive branchwide financial disclosure and financial 
interests regulations at 5 CFR parts 2634 and 2640, and implementing 
guidance and procedures. Commission employees are also subject to the 
executive branch regulations on responsibilities and conduct at 5 CFR 
part 735.
    (b) Definition. The Designated Agency Ethics Official (DAEO) is the 
Solicitor for the Commission.



Sec.  7801.102  Prior approval for outside employment.

    (a) An employee, other than a special Government employee, of the 
Commission who wishes to engage in outside employment shall first obtain 
the approval, in writing, of the Designated Agency Ethics Official 
(DAEO). Volunteer professional services, however, may be ``generally 
approved'' in advance as described in paragraph (e) of this section.
    (b) Standard for approval. Approval shall be granted by the DAEO 
only upon a determination that the prospective outside employment is not 
expected to involve conduct prohibited by statute or Federal regulation, 
including 5 CFR part 2635.
    (c) Upon a significant change in the nature or scope of the outside 
employment or the employee's official position, the employee must submit 
a revised request for approval.
    (d) For purposes of this section, ``outside employment'' means any 
form of non-Federal employment, business relationship or activity 
involving the provision of personal services by the employee, whether or 
not for compensation. It includes, but is not limited to, personal 
services as an officer, director, employee, agent, attorney, consultant, 
contractor, general partner, trustee, teacher, or speaker. It includes 
writing done under an arrangement with another person for production or 
publication of the written product. It does not, however, include 
participation in the activities of a nonprofit charitable, religious, 
professional, social, fraternal, educational, recreational, public 
service, or civic organization, unless such activities involve the 
provision of professional services or advice or are for compensation 
other than reimbursement of expenses.
    (e)(1) The Commission may designate volunteer activities as 
``generally approved,'' or preapproved by the DAEO, in order to 
facilitate the participation of the Commission's professional and 
nonprofessional staff (whether involving legal or non-legal services). 
Non-representational pro bono legal services designated as ``generally 
approved'' require employees to notify the DAEO, the General Counsel 
(GC), and the employee's supervisor (if different from the GC) prior to 
the employee's participation; however, no additional prior approval is 
required. Representational pro bono legal services designated as 
``generally approved'' still require prior case-specific written 
approval by the DAEO pursuant to this section, and notification of the 
GC and the employee's supervisor (if different from the GC). Non-legal

[[Page 994]]

professional volunteer activities designated as ``generally approved'' 
require employees to notify their supervisor and the DAEO. However, no 
additional prior written approval is required.
    (2) To provide professional services or advice to a program or 
activity not designated as ``generally approved,'' the employee must 
notify his or her supervisor and submit a written request and 
justification in advance to the DAEO. In addition, in order to provide 
pro bono legal services the employee must notify the GC (if the GC is 
not the employee's supervisor). If providing representational pro bono 
legal services, the employee must also obtain written case-specific 
prior approval from the DAEO pursuant to this section. All requests for 
approval submitted to the DAEO must reflect that the required 
notifications were made by the employee. All DAEO approvals must be in 
writing.

                       PARTS 7802	7899 [RESERVED]

[[Page 995]]



                CHAPTER LXIX--TENNESSEE VALLEY AUTHORITY




  --------------------------------------------------------------------
Part                                                                Page
7900

[Reserved]

7901            Supplemental standards of ethical conduct 
                    for employees of the Tennessee Valley 
                    Authority...............................         997
7902-7999

 [Reserved]

[[Page 997]]

                          PART 7900 [RESERVED]



PART 7901_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE TENNESSEE VALLEY AUTHORITY--Table of Contents



Sec.
7901.101 General.
7901.102 Prior approval for outside employment.

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 16 
U.S.C. 831-831dd; 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; 5 CFR 
2635.105, 2635.803.

    Source: 61 FR 20118, May 6, 1996, unless otherwise noted.



Sec.  7901.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Tennessee Valley Authority (TVA) and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. In addition, some TVA 
employees are subject to the executive branch financial disclosure 
regulations at 5 CFR part 2634.



Sec.  7901.102  Prior approval for outside employment.

    (a) Before engaging in outside employment, with or without 
compensation, an employee, other than a special Government employee, 
must obtain written approval from the supervising TVA vice president or 
designee. The written request shall be submitted through the employee's 
supervisor or human resource office and shall, at a minimum, identify 
the employer or other person for whom the services are to be provided, 
as well as the duties, hours of work, and compensation involved in the 
proposed outside employment.
    (b) Approval under paragraph (a) of this section shall be granted 
only upon a determination that the outside employment is not expected to 
involve conduct prohibited by statute or Federal regulation, including 5 
CFR part 2635.
    (c) Vice presidents or other officers of TVA may, after consultation 
with the Designated Agency Ethics Official, exempt specified classes of 
employees from this section based upon a determination that the official 
duties of employees in the class are such that their outside employment 
activities are not likely to raise issues of compliance with 5 CFR part 
2635.
    (d) For purposes of this section, employment means any form of non-
Federal employment or business relationship involving the provision of 
services by the employee. It includes, but is not limited to, personal 
services as an officer, director, employee, agent, attorney, consultant, 
contractor, general partner, trustee, teacher, or speaker. It includes 
writing when done under an arrangement with another person for 
production or publication of the written product. It does not, however, 
include participation in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service, or civic organization, unless such activities involve 
the provision of professional services or advice or are for compensation 
other than reimbursement for actual expenses.

                       PARTS 7902	7999 [RESERVED]

[[Page 999]]



  CHAPTER LXX--COURT SERVICES AND OFFENDER SUPERVISION AGENCY FOR THE 
                          DISTRICT OF COLUMBIA




  --------------------------------------------------------------------
Part                                                                Page
8000

[Reserved]

8001            Supplemental standards of ethical conduct 
                    for employees of the Court Services and 
                    Offender Supervision Agency.............        1001
8002-8099

 [Reserved]

[[Page 1001]]

                          PART 8000 [RESERVED]



PART 8001_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY--Table of Contents



Sec.
8001.101 General.
8001.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.801, 2635.802, 2635.803.

    Source: 76 FR 22295, Apr. 21, 2011, unless otherwise noted.



Sec.  8001.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to the employees of the Court Services and Offender 
Supervision Agency (CSOSA or Agency), and the employees of the Pretrial 
Services Agency (PSA or Agency), an independent entity within CSOSA. The 
regulations in this part supplement the Standards of Conduct for 
Employees of the Executive Branch contained in 5 CFR part 2635.
    (b) Cross-references. In addition to 5 CFR part 2635 and this part, 
CSOSA and PSA employees are subject to the executive branch financial 
disclosure regulations at 5 CFR part 2634, the regulations concerning 
executive branch financial interest contained in 5 CFR part 2640, and 
the regulations concerning executive branch employee responsibilities 
and conduct contained in 5 CFR part 735.



Sec.  8001.102  Prior approval for outside employment.

    (a) Prior approval requirement. An employee, other than a special 
Government employee, must obtain written approval from the employee's 
immediate supervisor and the Designated Agency Ethics Official (DAEO) 
before engaging in any outside employment, whether or not for 
compensation.
    (b) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment, business 
relationship or activity involving the provision of personal services by 
the employee, whether or not for compensation. It includes, but is not 
limited to, personal services as an officer, director, employee, agent, 
attorney, consultant, contractor, general partner, trustee, teacher, or 
speaker. It includes writing when done under an arrangement with another 
person for production or publication of the written product. It does 
not, however, include participation in the activities of a nonprofit 
charitable, religious, professional, social, fraternal, educational, 
recreational, public service, or civic organization, unless the 
participation involves the provision of professional services or advice 
for compensation other than reimbursement for actual expenses, the 
organization's activities are devoted substantially to matters relating 
to the employee's official duties, or involves conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635 and paragraph 
(c) of this section.
    (c) Standard of approval. Approval shall be granted only upon a 
determination that the outside employment or activity is not expected to 
involve conduct prohibited by statute or Federal regulation, including 5 
CFR part 2635. The employee's immediate supervisor and the DAEO shall 
approve or deny the employee's request for prior approval of outside 
employment within seven (7) calendar days of receiving from the employee 
complete information necessary to make such a determination.
    (d) Scope of approval. Approval will be for a period of three years, 
after which the employee must request renewed approval in accordance 
with this section. If during the approved three-year period there is a 
significant change in the nature or scope of the outside employment or 
in the employee's Agency position or duties, the employee shall submit a 
renewed request for approval within ten (10) calendar days of the 
change.
    (e) Submission of application. The employee shall submit the request 
on a form provided by the DAEO through the employee's immediate 
supervisor. The request must be submitted not less than ten (10) 
calendar days prior to the

[[Page 1002]]

date the proposed employment will begin, in order to allow for 
completion of the review before the anticipated start of the outside 
employment. The form shall set forth at the minimum the description of 
the employee's current position; information on the prospective 
employment, including the nature of the service to be performed, the 
anticipated date, and number of hours of work per week; whether the 
prospective employer has any contractual relationship with the Federal 
government; whether the employee will come in contact with defendants, 
offenders, family members, or their representatives in the course of the 
outside employment; whether the prospective employment involves any 
criminal justice matters; whether the employee will be required to 
testify as an expert witness in any matter related to the prospective 
employment; and whether the prospective employment involves solicitation 
or advertising services.
    (f) Appeal. If the Designated Agency Ethics Official denied the 
request, the employee may appeal that decision to the Agency Director.

                       PARTS 8002	8099 [RESERVED]

[[Page 1003]]



            CHAPTER LXXI--CONSUMER PRODUCT SAFETY COMMISSION




  --------------------------------------------------------------------
Part                                                                Page
8100

[Reserved]

8101            Supplemental standards of ethical conduct 
                    for employees of the Consumer Product 
                    Safety Commission.......................        1005
8102-8199

 [Reserved]

[[Page 1005]]

                          PART 8100 [RESERVED]



PART 8101_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE CONSUMER PRODUCT SAFETY COMMISSION--Table of Contents



Sec.
8101.101 General.
8101.102 Prohibitions applicable to Commissioners.
8101.103 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 15 U.S.C. 2053(c); E.O. 12674, 54 FR 15139, 3 CFR, 1989 Comp., p. 
215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306; 
5 CFR 2635.105, 2635.803.

    Source: 61 FR 65458, Dec. 13, 1996, unless otherwise noted.



Sec.  8101.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Consumer Product Safety Commission (CPSC). 
These regulations supplement the Standards of Ethical Conduct for 
Employees of the Executive Branch contained in 5 CFR part 2635.



Sec.  8101.102  Prohibitions applicable to Commissioners.

    The Commissioners of the Consumer Product Safety Commission are 
subject to section 4(c) of the Consumer Product Safety Act, 15 U.S.C. 
2053(c). That statutory provision provides that a Commissioner may not 
engage in any other business, vocation, or employment.



Sec.  8101.103  Prior approval for outside employment.

    (a) Prior approval requirement. Before engaging in any outside 
employment, with or without compensation, an employee, other than a 
special Government employee. shall obtain prior written approval from 
his or her supervisor and the Designated Agency Ethics Official (DAEO) 
or Alternate DAEO. The Request for Approval of Outside Activity (CPSC 
Form 241), available from the DAEO or unit administrative officer, may 
be used to request approval. Requests for approval shall be forwarded 
through normal supervisory channels.
    (b) Standard of approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by Federal statute or regulation, including 5 CFR 
part 2635.
    (c) Notification of action. Employees will be notified in writing of 
the action taken on their requests. All requests will be maintained in 
the files of the Designated Agency Ethics Official for the duration of 
the requester's CPSC employment.
    (d) Duration and scope of approval. Approval will be for a period 
not to exceed two years, after which renewal approval must be sought. An 
employment must submit a new request for approval after two years or 
earlier upon either a significant change in the nature or scope of the 
outside employment or a change in the employee's CPSC position.
    (e) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment, business 
relationship or activity involving the provision of personal services by 
the employee, whether or not for compensation. Employment includes, but 
is not limited to, personal services as an officer, director, employee, 
agent, attorney, consultant, contractor, general partner, trustee, 
teacher or speaker. Employment also includes writing when done under an 
arrangement with another person for production or publication of the 
written product. Employment does not, however, include participation in 
the activities of a nonprofit charitable, religious, professional, 
social, fraternal, educational, recreational, public service, consumer 
or civic organization, unless such activities are for compensation other 
than reimbursement for expenses or involve the provision of professional 
services or advice to, or serving as an officer, trustee, or member of a 
board or other such body of, an organization that is a prohibited source 
as defined in 5 CFR 2635.203(d).

                       PARTS 8102	8199 [RESERVED]

[[Page 1007]]



                CHAPTER LXXIII--DEPARTMENT OF AGRICULTURE




  --------------------------------------------------------------------
Part                                                                Page
8300

[Reserved]

8301            Supplemental standards of ethical conduct 
                    for employees of the Department of 
                    Agriculture.............................        1009
8302-8399

 [Reserved]

[[Page 1009]]

                          PART 8300 [RESERVED]



PART 8301_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF AGRICULTURE--Table of Contents



Sec.
8301.101 General.
8301.102 Prior approval for outside employment.
8301.103 Additional rules for employees of the Farm Service Agency.
8301.104 Additional rules for employees of the Food Safety and 
          Inspection Service.
8301.105 Additional rules for employees of the Office of the General 
          Counsel.
8301.106 Additional rules for employees of the Office of Inspector 
          General.
8301.107 Additional rules for RD employees.

    Authority: 5 U.S.C. 301, 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 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; 
5 CFR 2635.105, 2635.403(a), 2635.802(a), 2635.803.

    Source: 65 FR 58638, Oct. 2, 2000, unless otherwise noted.



Sec.  8301.101  General.

    (a) In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Department of Agriculture (Department or USDA) 
and supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635.
    (b) In addition to 5 CFR part 2635 and this part, employees also are 
required to comply with the executive branch financial disclosure 
regulations at 5 CFR part 2634, the regulations on responsibilities and 
conduct contained in 5 CFR part 735, and Department guidance and 
procedures established pursuant to paragraph (c) of this section.
    (c) With the concurrence of the Designated Agency Ethics Official 
(DAEO), agencies and components of the Department may, in accordance 
with 5 CFR 2635.105(c), issue explanatory guidance for their employees 
and establish procedures necessary to implement this part and part 2635 
of this title. The Deputy Ethics Official for each agency or component 
shall retain copies of all such guidance issued by that agency or 
component.



Sec.  8301.102  Prior approval for outside employment.

    (a) Prior approval requirement. An employee, other than a special 
Government employee, who is required to file either a public or 
confidential financial disclosure report (SF 278 or OGE Form 450), or an 
alternative form of reporting approved by the Office of Government 
Ethics, shall, before engaging in outside employment, obtain written 
approval in accordance with the procedures set forth in paragraph (c) of 
this section.
    (b) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment or business 
relationship or activity involving the provision of personal services by 
the employee for direct, indirect, or deferred compensation other than 
reimbursement of actual and necessary expenses. It also includes, 
irrespective of compensation, the following outside activities.
    (1) Providing personal services as a consultant or professional, 
including service as an expert witness or as an attorney; and
    (2) Providing personal services to a for-profit entity as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner, or trustee, which involves decision making or 
policymaking for the non-Federal entity, or the provision of advice or 
counsel.
    (c) Submission of requests for approval. An employee seeking to 
engage in employment for which advance approval is required shall submit 
a written request for approval to the employee's supervisor a reasonable 
time before the employee proposes to begin the employment. Upon a 
significant change in the nature of the outside employment or in the 
employee's official position, the employee shall submit a revised 
request for approval. The supervisor will forward written requests for 
approval to the agency designee, through normal supervisory channels. 
All requests for prior approval shall include the following information:
    (1) The employee's name, organizational location, occupational 
title, grade, and salary;

[[Page 1010]]

    (2) The nature of the proposed outside employment, including a full 
description of the specific duties or services to be performed;
    (3) A description of the employee's official duties that relate in 
any way to the proposed employment;
    (4) The name and address of the person or organization for whom or 
with which the employee is to be employed, including the location where 
the services will be performed;
    (5) The method or basis of any compensation (e.g., fee, per diem, 
honorarium, royalties, stock options, travel and expenses, or other);
    (6) A statement as to whether the compensation is derived from a 
USDA grant, contract, cooperative agreement, or other source of USDA 
funding;
    (7) For employment involving the provision of consultative or 
professional services, a statement indicating whether the client, 
employer, or other person on whose behalf the services are performed is 
receiving, or intends to seek, a USDA grant, contract, cooperative 
agreement, or other funding relationship; and
    (8) For employment involving teaching, speaking, writing or editing, 
the proposed text of any disclaimer required by 5 CFR 2635.807(b).
    (d) Standard for approval. Approval shall be granted by the agency 
designee unless it is determined that the outside employment is expected 
to involve conduct prohibited by statute or Federal regulation, 
including 5 CFR part 2635.
    (e) Responsibilities of the component agencies. (1) The agency 
designee for each separate agency or component of USDA may issue an 
instruction or manual issuance exempting categories of employment from a 
requirement of prior written approval based on a determination that 
employment within those categories would generally be approved and is 
not likely to involve conduct prohibited by Federal statutes or 
regulations, including 5 CFR part 2635 and this part.
    (2) Department components may specify internal procedures governing 
the submission of prior approval requests, including but not limited to: 
timely submission requirements; determination deadlines; appeals or 
reviews; and requirements for updating requests. Internal procedures 
also should designate appropriate officials to act on such requests. The 
instructions or manual issuances may include examples of outside 
employment that are permissible or impermissible consistent with 5 CFR 
part 2635 and this part. With respect to employment involving teaching, 
speaking or writing, the instructions or manual issuances may specify 
pre-clearance procedures and/or require disclaimers indicating that the 
views expressed do not necessarily represent the views of the agency, 
USDA or the United States.
    (3) The officials within the respective USDA agencies or components 
responsible for the administrative aspects of these regulations and the 
maintenance of records shall make provisions for the filing and 
retention of requests for approval of outside employment and copies of 
the notification of approval or disapproval.



Sec.  8301.103  Additional rules for employees of the Farm Service Agency.

    (a) Application. This section applies only to Farm Service Agency 
(FSA) personnel who are Federal employees within the meaning of 5 U.S.C. 
2105. This section does not apply to FSA community committee members, 
county committee members, and county office personnel, who are either 
elected to their positions or are employees of community or county 
committees established under 16 U.S.C. 590h. For rules applicable to FSA 
community committee members, county committee members, and county office 
personnel, see 7 CFR part 7.
    (b) Definition of FSA program participant. For purposes of this 
section, the phrase ``FSA program participant,'' includes any person who 
is, or is an applicant to become, an FSA borrower, FSA grantee, or 
recipient of any other form of FSA financial assistance available under 
any farm credit, payment or other program administered by FSA.
    (c) Prohibited real estate purchases. (1) No FSA employee, or spouse 
or minor child of an FSA employee, may directly or indirectly purchase 
real estate held in the FSA inventory, for sale under forfeiture to FSA, 
or from an FSA program participant.

[[Page 1011]]

    (2) Waiver. A request for an exception to the prohibition found in 
paragraph (c)(1) of this section may be submitted jointly by the FSA 
program participant and FSA employee (whether on his or her own behalf, 
or on behalf the employee's spouse or minor child), to the FSA State 
Executive Director. The FSA State Executive Director may grant a written 
waiver from this prohibition based on a determination made with the 
advice and clearance of the DAEO and the FSA headquarters ethics advisor 
that the waiver is not inconsistent with part 2635 of this title nor 7 
U.S.C. 1986 nor otherwise prohibited by law and that, under the 
particular circumstances, application of the prohibition is not 
necessary to avoid the appearance of misuse of position or loss of 
impartiality or otherwise to ensure confidence in the impartiality and 
objectivity with which agency programs are administered. A waiver under 
this paragraph may impose appropriate conditions, such as requiring 
execution of a written disqualification.
    (d) Prohibited transactions with FSA program participants. (1) 
Except as provided in paragraph (d)(2) of this section, no FSA employee 
or spouse or minor child of an FSA employee may directly or indirectly: 
sell real property to; lease real property to or from; sell to, lease to 
or from, or purchase personal property from; or employ for compensation 
a person whom the FSA employee knows or reasonably should know is an FSA 
program participant directly affected by decisions of the particular FSA 
office in which the FSA employee serves.
    (2) Exceptions. Paragraph (d)(1) of this section does not apply to:
    (i) A sale, lease, or purchase of personal property, if it involves:
    (A) Goods available to the general public at posted prices that are 
customary and usual within the community; or
    (B) Property obtained pursuant to public auction; or
    (ii) Transactions listed in (d)(1) of this section determined in 
advance by the appropriate FSA State Executive Director, after 
consulting with the FSA Headquarters ethics advisor, to be consistent 
with part 2635 of this title and otherwise not prohibited by law.
    (e) Additional prior approval requirements for outside employment. 
Any FSA employee not otherwise required to obtain approval for outside 
employment under Sec.  8301.102 shall obtain written approval in 
accordance with the procedures and standards set forth in paragraphs (c) 
and (d) of Sec.  8301.102 before engaging in outside employment, as that 
term is defined by paragraph (b) of Sec.  8301.102, with or for a 
person:
    (1) Whom the FSA employee knows, or reasonably should know, is an 
FSA program participant; and
    (2) Who is directly affected by decisions made by the particular FSA 
office in which the FSA employee serves.

[65 FR 58638, Oct. 2, 2000, as amended at 67 FR 58319, Sept. 16, 2002]



Sec.  8301.104  Additional rules for employees of the Food Safety 
and Inspection Service.

    Any employee of the Food Safety and Inspection Service not otherwise 
required to obtain approval for outside employment under Sec.  8301.102, 
shall, before engaging in any form of outside employment, obtain written 
approval in accordance with the procedures and standards set forth in 
paragraphs (c) and (d) of Sec.  8301.102



Sec.  8301.105  Additional rules for employees of the Office 
of the General Counsel.

    Any attorney serving within the Office of the General Counsel, not 
otherwise required to obtain approval for outside employment under Sec.  
8301.102, shall obtain written approval, in accordance with the 
procedures and standards set forth in paragraphs (c) and (d) of Sec.  
8301.102, before engaging in the outside practice of law, whether 
compensated or not.



Sec.  8301.106  Additional rules for employees of the Office 
of Inspector General.

    Any employee of the Office of Inspector General, not otherwise 
required to obtain approval for outside employment under Sec.  8301.102, 
shall obtain written approval, in accordance with the procedures and 
standards set forth in paragraphs (c) and (d) of Sec.  8301.102, before 
engaging in any form of outside

[[Page 1012]]

employment that involves the following:
    (a) Law enforcement, investigation, security, firearms training, 
defensive tactics training, and protective services;
    (b) Auditing, accounting, bookkeeping, tax preparation, and other 
services involving the analysis, use, or interpretation of financial 
records;
    (c) The practice of law, whether compensated or not; or
    (d) Employment involving personnel, procurement, budget, computer, 
or equal employment opportunity services.



Sec.  8301.107  Additional rules for RD employees.

    (a) Application. Except where otherwise noted below, this section 
applies to all of the Department's RD employees, other than special 
Government employees, as defined at 18 U.S.C. 202, including employees 
of the Rural Housing Service, Rural Business and Cooperative Service, 
and Rural Utilities Service.
    (b) Definition of RD program participant. For purposes of this 
section, the phrase ``RD program participant,'' includes any person 
(including any entity) who, either individually or collectively, 
currently has an outstanding loan, loan guaranty, or grant from RD, 
currently receives any other form of RD financial assistance under a 
credit, payment, or other program administered by RD, or has an 
application on file to become an RD borrower, RD grantee, or recipient 
of any other form of RD financial assistance available under any credit, 
payment or other program administered by RD. Voluntary membership by a 
person in a utility or public-type facility organization that is an RD 
program participant does not make the person an RD program participant.
    (c) Prohibited financial interests. (1) Except as provided for in 
paragraph (c)(2) of this section, an RD employee, or a spouse or minor 
child of an RD employee, shall not knowingly own, receive, or acquire 
stock, or hold any other financial interest in a for-profit entity, or 
affiliate of a for-profit entity, that is an RD program participant, a 
business that does or seeks to do business with RD, or one that sells 
repeatedly to RD borrowers or contractors for payment from RD loan, loan 
guaranty, or grant funds, if that entity or affiliate is affected by 
decisions of the particular RD office in which the RD employee serves. 
Types of entities covered by this section include, but are not limited 
to the following:
    (i) Entities engaged in commercial real estate sales and leasing, 
including brokers, sales agents, mortgage lenders, and other financial 
servers;
    (ii) Title and abstract companies;
    (iii) House/building construction companies and subcontractors;
    (iv) Building supply companies and lumberyards;
    (v) Insurance companies; and
    (vi) Entities involved in land development.
    (2) Exceptions. (i) Nothing in this section prohibits an RD 
employee, or a spouse or minor child of an RD employee, from owning any 
of the interests described in paragraph (c)(1) of this section where the 
interest is held through investment in a publicly traded or publicly 
available mutual fund or other collective investment fund or in a widely 
held pension or similar fund provided that the fund does not invest more 
than 5 percent of its assets in any one entity covered under paragraph 
(c)(1) of this section and does not invest more than 25 percent of its 
assets in any combination of entities covered under paragraph (c)(1) of 
this section.
    (ii) Nothing in this section prohibits an RD employee, or a spouse 
or minor child of an RD employee, from owning Patronage Capital that the 
employee receives simply by reason of being a member of a nonprofit 
entity, such as an electric, telecommunications, or water cooperative. 
For purposes of this section, Patronage Capital is defined as amounts 
received for providing a service in excess of the amounts required for 
operating costs and expenses.
    (d) Prohibited real estate purchases. Except in cases where a waiver 
has been granted pursuant to paragraph (g) of this section, no RD 
employee, or spouse or minor child of an RD employee may personally, or 
through the participation of another person, knowingly purchase real 
estate or personal property: Mortgaged or pledged to the

[[Page 1013]]

Government through RD; held in the RD inventory; for sale under 
forfeiture to RD; or from an RD program participant.
    (e) Prohibited transactions with RD program participants. (1) Except 
in cases where a transaction is subject to the exceptions set forth in 
paragraph (e)(2) of this section, or where a waiver has been granted 
pursuant to paragraph (g) of this section, no RD employee or spouse or 
minor child of an RD employee, may knowingly: Purchase an interest in or 
sell real property to; lease real property to or from; sell to, lease to 
or from, or purchase personal property from; seek or accept credit from 
RD-financed cooperative associations; or employ for compensation a 
person whom the RD employee or spouse or minor child of the RD employee, 
knows or reasonably should know is an RD program participant directly 
affected by decisions of the particular RD office in which the RD 
employee serves.
    (2) Exceptions. Paragraph (e)(1) of this section does not apply to a 
sale, lease, or purchase of personal property, if it involves goods 
available to the general public at posted prices that are customary and 
usual within the community.
    (f) Prohibited outside employment. No RD employee may provide 
personal consulting services for any person or entity with an 
application on file with, grant from, or outstanding loan or loan 
guaranty with RD, if the application, grant, or outstanding loan or loan 
guaranty could be affected directly by decisions of the particular RD 
office in which the RD employee serves.
    (g) Waiver--(1) Approving officials. A written request for an 
exception to the prohibitions found in paragraphs (d) and (e) of this 
section may be submitted in advance of the transaction by the RD 
employee (whether on his or her own behalf, or on behalf of the 
employee's own spouse or minor child) to:
    (i) The RD State Director, for RD State-level employees; or
    (ii) The Deputy Administrator for Operations and Management, for RD 
State Directors and National Office employees.
    (2) Standards. The RD State Director or Deputy Administrator for 
Operations and Management may grant a written waiver from this 
prohibition based on a determination made with the concurrence of the 
USDA Office of Ethics that all three of the following conditions are 
satisfied:
    (i) The waiver is not inconsistent with part 2635 of this title, 
this part, or 7 U.S.C. 1986, nor otherwise prohibited by law, and that, 
under the particular circumstances, application of the prohibition is 
not necessary to avoid the appearance of misuse of position or loss of 
impartiality or otherwise to ensure confidence in the impartiality and 
objectivity with which agency programs are administered;
    (ii) The transaction:
    (A) Appears free of duress or favoritism;
    (B) Does not involve a contractual relationship or obligation that 
exceeds 365 consecutive calendar days; and
    (C) Is in the best interests of the RD program participant; and
    (iii) A denial of the request would likely cause significant 
hardship to the RD program participant.
    (3) Additional conditions. A waiver under this paragraph may impose 
appropriate conditions, such as requiring execution of a written 
disqualification. Approval of a waiver under this paragraph does not 
exempt the employee from complying with other applicable programmatic 
requirements under 7 CFR part 3550.9.
    (h) Additional prior approval requirement for outside employment. 
(1) Any RD employee wishing to engage in outside employment as defined 
in paragraph (b) of Sec.  8301.102 and who is not otherwise required to 
obtain approval therefor under that section, shall obtain prior written 
approval in accordance with the procedures set forth in paragraphs (c) 
and (d) of Sec.  8301.102 if the outside employment is covered under 
paragraph (h)(2) or paragraph (h)(3) of this section.
    (2) Outside employment is subject to the prior approval requirement 
of this paragraph if it involves any of the following activities, if 
conducted in the area serviced by the RD office in which the employee 
serves:
    (i) Sale, appraisal, or assessment of real estate;

[[Page 1014]]

    (ii) Performance of real estate brokerage services;
    (iii) Service as a title attorney or title insurance representative;
    (iv) Real estate development, including the construction of houses 
or other buildings;
    (v) Service as an officer or on the board of directors of a bank or 
savings and loan association;
    (vi) Service as an officer, member of the board of directors or 
trustees, or as an employee of an RD-financed entity;
    (vii) Service as an officer, employee, or member of a governing 
board of a State, county, municipal, or other local political 
jurisdiction having the power to tax or zone real estate;
    (viii) Membership in grazing associations, un-incorporated Economic 
Opportunity cooperatives, rental housing groups, and closely-held labor 
housing organizations;
    (ix) Insurance sales; or
    (x) Land speculation.
    (3) Outside employment is also subject to the prior approval 
requirements of this paragraph if it is with or for a person whom the RD 
employee knows, or reasonably should know, is both:
    (i) An RD program participant; and
    (ii) Directly affected by decisions made by the particular RD office 
in which the RD employee serves.

[75 FR 51372, Aug. 20, 2010]

                       PARTS 8302	8399 [RESERVED]

[[Page 1015]]



     CHAPTER LXXIV--FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION




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Part                                                                Page
8400

[Reserved]

8401            Supplemental standards of ethical conduct 
                    for employees of the Federal Mine Safety 
                    and Health Review Commission............        1017
8402-8499

 [Reserved]

[[Page 1017]]

                          PART 8400 [RESERVED]



PART 8401_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION--Table of Contents



Sec.
8401.101 General.
8401.102 Prohibited financial interests.
8401.103 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.403(a), 2635.802(a), 2635.803.

    Source: 61 FR 39871, July 31, 1996, unless otherwise noted.



Sec.  8401.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to the employees of the Federal Mine Safety and Health Review 
Commission (Commission) and supplement the Standards of Ethical Conduct 
for Employees of the Executive Branch at 5 CFR part 2635. Commission 
employees also are subject to the executive branch financial disclosure 
regulations at 5 CFR part 2634.



Sec.  8401.102  Prohibited financial interests.

    (a) Prohibition. Except as provided in this section, no employee 
(other than a special Government employee), or spouse or minor child of 
such an employee, shall have a financial interest, including compensated 
employment or indebtedness, in any company or other person engaged in 
mining activities subject to the Federal Mine Safety and Health Act of 
1977 (Federal Mine Safety and Health Act), 30 U.S.C. 801 et seq.
    (b) Exceptions. (1) This section does not prohibit an employee, or 
the spouse or minor child of an employee, from investing in a publicly 
traded or publicly available investment fund which, in its prospectus, 
does not indicate the objective or practice of concentrating its 
investments in the securities of any company or other person engaged in 
mining activities subject to the Federal Mine Safety and Health Act, 
provided that the employee neither:
    (i) Exercises control over the financial interests held in the fund; 
nor
    (ii) Has the ability to exercise control over the financial 
interests held in the fund.
    (2)(i) Unless divestiture is required by paragraph (c) of this 
section, this section does not prohibit an employee, or the spouse or 
minor child of an employee, from owning or controlling securities of any 
company or other person engaged in mining activities subject to the 
Federal Mine Safety and Health Act, whenever:
    (A) Ownership or control was acquired prior to the employee's 
commencement of employment, through a change in marital status, or 
through circumstances beyond the employee's control and without the 
appearance of attempting to circumvent the prohibitions in this section, 
such as acquisition by inheritance, gift, or merger, acquisition or 
other change in corporate ownership, provided that: (1) The employee 
makes full, written disclosure to the designated agency ethics official 
within 30 days after the security is acquired or the employment is 
commenced; and
    (2) The employee is disqualified from participating in any decision, 
examination, audit, or other particular matter having a direct and 
predictable effect on such company or other person, in which the 
employee holds a direct or indirect interest.
    (B) The securities result from a stock split, stock dividend or the 
exercise of preemptive rights arising out of securities permitted by 
paragraph (b)(2)(i)(A) of this section. This paragraph does not permit 
the holding of stocks purchased through voluntary reinvestment of cash 
dividends.
    (ii) For purposes of this section, the term ``securities'' includes 
all interests in debt or equity instruments. The term includes, without 
limitation, secured and unsecured bonds, debentures, notes, securitized 
assets and commercial paper, as well as all types of preferred and 
common stock. The term encompasses both current and contingent ownership 
interests, including any beneficial or legal interest derived from a

[[Page 1018]]

trust. It extends to any right to acquire or dispose of any long or 
short position in such securities and includes, without limitation, 
interests convertible into such securities, as well as options, rights, 
warrants, puts, calls, and straddles with respect thereto.
    (c) Divestiture. The designated agency ethics official may require 
an employee to divest a security the employee is otherwise authorized to 
retain under paragraph (b)(2) of this section, based on a determination 
of substantial conflict under Sec.  2635.403(b) of this title.
    (d) Waivers. The designated agency ethics official may grant a 
written waiver from the prohibition contained in this section based on a 
determination that the waiver is not inconsistent with 5 CFR part 2635 
or otherwise prohibited by law and that, under the particular 
circumstances, application of the prohibition is not necessary to avoid 
the appearance of misuse of position or loss of impartiality, or 
otherwise to ensure confidence in the impartiality and objectivity with 
which Commission programs are administered. A waiver under this 
paragraph may be accompanied by appropriate conditions, such as 
requiring execution of a written statement of disqualification. 
Notwithstanding the grant of any waiver, an employee remains subject to 
the disqualification requirements of 5 CFR 2635.402 and 2635.502.



Sec.  8401.103  Prior approval for outside employment.

    (a) Prior approval requirement. (1) Before engaging in any outside 
employment, whether or not for compensation, a Commission employee who 
is classified at GS-13 or above, as well a Commission attorney at any 
grade level, must obtain the written approval of the employee's 
immediate supervisor and the designated agency ethics official. This 
requirement does not apply to a special Government employee of the 
Commission.
    (2) Requests for approval shall be forwarded through the employee's 
immediate supervisor to the designated agency ethics official and shall 
include at a minimum the name of the person, group, or organization for 
whom the work is to be performed; the type of work to be performed; and 
the proposed hours of work and approximate dates of employment.
    (b) Standard for approval. Approval shall be granted only upon a 
determination that outside employment is not expected to involve conduct 
prohibited by statute or Federal regulation, including 5 CFR 2635 and 
this part.
    (c) Definitions. For purposes of this section:
    (1) Employment means any form of non-Federal employment or business 
relationship involving the provision of personal services by the 
employee. It includes but is not limited to personal services as an 
officer, director, employee, agent, attorney, consultant, contractor, 
general partner, trustee or teacher. It also includes writing when done 
under an arrangement with another person for production or publication 
of the written product. It does not, however, include participation in 
the activities of a nonprofit charitable, religious, professional, 
social, fraternal, educational, recreational, public service or civic 
organization, unless such activities involve the provision of 
professional services or advice or are for compensation other than 
reimbursement expenses.
    (2) Professional services means the provision of personal services 
by an employee, including the rendering of advice or consultation, which 
involves application of the skills of a profession as defined in 5 CFR 
2636.305(b)(1).

                       PARTS 8402	8499 [RESERVED]

[[Page 1019]]



        CHAPTER LXXVI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD




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Part                                                                Page
8600

[Reserved]

8601            Supplemental standards of ethical conduct 
                    for employees of the Federal Retirement 
                    Thrift Investment Board.................        1021
8602-8699

 [Reserved]

[[Page 1021]]

                          PART 8600 [RESERVED]



PART 8601_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL RETIREMENT THRIFT INVESTMENT BOARD--Table of Contents



Sec.
8601.101 General.
8601.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.



Sec.  8601.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Federal Retirement Thrift Investment Board 
(Board) and supplement the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635. In addition, Board 
employees are subject to the executive branch financial disclosure 
regulations at 5 CFR part 2634.

[59 FR 50817, Oct. 6, 1994]



Sec.  8601.102  Prior approval for outside employment.

    (a) Before engaging in outside employment, with or without 
compensation, an employee, other than a special Government employee, 
must obtain written approval from his or her office director. The 
written request shall be submitted through the employee's immediate 
supervisor, unless the supervisor is the employee's office director, and 
shall identify the employer or other person for whom the services are to 
be provided, as well as the duties, hours of work, and compensation 
involved in the proposed outside employment.
    (b) Approval under paragraph (a) of this section shall be granted 
only upon a determination that the outside employment is not expected to 
involve conduct prohibited by statute or Federal regulation, including 5 
CFR part 2635.
    (c) In addition to the approval required by paragraph (a) of this 
section, an employee whose outside employment involves teaching, 
speaking, or writing that relates to his or her official duties within 
the meaning of 5 CFR 2635.807(a)(2) shall obtain approval from the 
Executive Director of the Board to engage in the activity as an outside 
activity, rather than as part of the employee's official duties.
    (d) For purposes of this section, employment means any form of non-
Federal employment or business relationship involving the provision of 
personal services by the employee. It includes, but is not limited to, 
personal services as an officer, director, employee, agent, attorney, 
consultant, contractor, general partner, trustee, teacher or speaker. It 
includes writing when done under an arrangement with another person for 
production or publication of the written product. It does not, however, 
include participation in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service or civil organization, unless the participation involves 
the provision of professional services or advice for compensation other 
than reimbursement for actual expenses.

[59 FR 50817, Oct. 6, 1994]

                       PARTS 8602	8699 [RESERVED]

[[Page 1023]]



             CHAPTER LXXVII--OFFICE OF MANAGEMENT AND BUDGET




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Part                                                                Page
8700

[Reserved]

8701            Supplemental standards of ethical conduct 
                    for employees of the Office of 
                    Management and Budget...................        1025
8702-8799

 [Reserved]

[[Page 1025]]

                          PART 8700 [RESERVED]



PART 8701_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE OFFICE OF MANAGEMENT AND BUDGET--Table of Contents



Sec.
8701.101 General.
8701.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 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; 5 CFR 2635.105, 
2635.803.



Sec.  8701.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to the employees of the Office of Management and Budget and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635 and this part, OMB employees are subject to 
the executive branch financial disclosure regulations contained in 5 CFR 
part 2634.

[60 FR 12397, Mar. 7, 1995]



Sec.  8701.102  Prior approval for outside employment.

    (a) Before engaging in outside employment with or without 
compensation, an employee of the Office of Management and Budget, other 
than a special Government employee, must obtain the written approval of 
his or her division or office head, the General Counsel, and the 
Designated Agency Ethics Official (DAEO). Requests for approval shall be 
forwarded through normal supervisory channels to the division or office 
head, who shall forward the request to the General Counsel, to be 
forwarded with their successive approvals to the DAEO. The request for 
approval shall include, at a minimum, the following:
    (1) A statement of the name of the person, group, or other 
organization for whom the work is to be performed; the type of work to 
be performed; and the proposed hours of work and approximate dates of 
employment; and
    (2) A statement that the outside employment will not depend on 
information obtained as a result of the employee's official Government 
position and that no official duty time or Government property, 
resources, or facilities not available to the general public will be 
used in connection with the outside employment.
    (b) Approval shall be granted only upon a determination that the 
outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635.
    (c) For purposes of this section, ``employment'' means any form of 
non-Federal employment or business relationship involving the provision 
of personal services by the employee. It includes, but is not limited 
to, personal services as an officer, director, employee, agent, 
attorney, consultant, contractor, general partner, trustee, teacher or 
speaker. It includes writing when done under an arrangement with another 
person for production or publication of the written product. It does 
not, however, include participation in the activities of a nonprofit 
charitable, religious, professional, social, fraternal, educational, 
recreational, public service, or civic organization, unless such 
activities involve the provision of professional services or advice or 
are for compensation other than reimbursement of expenses.

[60 FR 12397, Mar. 7, 1995]

                       PARTS 8702	8799 [RESERVED]

[[Page 1027]]



              CHAPTER LXXX--FEDERAL HOUSING FINANCE AGENCY




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Part                                                                Page
9000

[Reserved]

9001            Supplemental standards of ethical conduct 
                    for employees of the Federal Housing 
                    Finance Agency..........................        1029
9002-9099

 [Reserved]

[[Page 1029]]

                          PART 9000 [RESERVED]



PART 9001_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL HOUSING FINANCE AGENCY--Table of Contents



Sec.
9001.101 General.
9001.102 Definitions.
9001.103 Waivers.
9001.104 Prohibited financial interests.
9001.105 Outside employment.
9001.106 Restrictions resulting from employment of family and household 
          members.
9001.107 Other limitations.
9001.108 Prohibited recommendations.
9001.109 Prohibited purchase of assets.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 12 U.S.C. 4526; 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; 
5 CFR 2635.105, 2635.402(c), 2635.403(a), 2635.502(e), 2635.604, 
2635.702, 2635.703, 2635.802(a), 2635.803.

    Source: 75 FR 52611, Aug. 27, 2010, unless otherwise noted.



Sec.  9001.101  General.

    (a) Purpose and scope. In accordance with 5 CFR 2635.105, the 
purpose of this regulation is to supplement the Standards of Ethical 
Conduct for Employees of the Executive Branch contained in 5 CFR part 
2635. The regulation applies to employees of the Federal Housing Finance 
Agency (FHFA). Employees are required to comply with 5 CFR part 2635, 
this part, guidance and procedures established pursuant to this part, 
the regulation concerning the post-employment restriction for senior 
examiners at 12 CFR part 1212, and any additional rules of conduct that 
FHFA is authorized to issue. Employees should contact the DAEO if they 
have questions about any provision of this regulation or other ethics-
related matters.
    (b) Cross-references--(1) Regulations. FHFA employees are also 
subject to the regulations concerning executive branch financial 
disclosure contained in 5 CFR part 2634, the regulations concerning 
executive branch financial interests contained in 5 CFR part 2640, and 
the regulations concerning executive branch employee responsibilities 
and conduct contained in 5 CFR part 735.
    (2)(i) Statutory restriction. Section 1319D of the Act, 12 U.S.C. 
4523, prohibits the Director or any former officer or employee of FHFA 
who, while employed by FHFA, was compensated at a rate in excess of the 
lowest rate for a position classified higher than GS-15 of the General 
Schedule under section 5107 of title 5, United States Code, from 
accepting compensation from an enterprise during the two-year period 
beginning on the date of his or her separation from employment by FHFA.
    (ii) Notice to employees. The DAEO shall notify employees on an 
annual basis of the rate of compensation that triggers the subsequent 
employment restriction.



Sec.  9001.102  Definitions.

    For purposes of this part, the term:
    Affiliate means any entity that controls, is controlled by, or is 
under common control with another entity.
    Designated Agency Ethics Official, or DAEO, as also used in 5 CFR 
part 2635, and ``alternate DAEO'' mean the individuals so designated by 
the Director, FHFA. The DAEO is responsible for designating agency 
ethics officials and ethics designees, as such terms are used in 5 CFR 
part 2635. The alternate DAEO acts as the DAEO in the DAEO's absence.
    Director means the Director of FHFA or his or her designee.
    Employee means an officer or employee of FHFA, including a special 
Government employee. For purposes of this part, it also means an 
individual on detail from another agency to FHFA for a period of more 
than 30 calendar days.
    Enterprise means the Federal National Mortgage Association or the 
Federal Home Loan Mortgage Corporation.
    Federal Home Loan Bank or Bank means a Bank established under the 
Federal Home Loan Bank Act; the term ``Federal Home Loan Banks'' means, 
collectively, all the Federal Home Loan Banks.
    Federal Home Loan Bank System means the Federal Home Loan Banks 
under the supervision of the Federal Housing Finance Agency.

[[Page 1030]]

    Regulated entity means the Federal National Mortgage Association and 
any affiliate thereof; the Federal Home Loan Mortgage Corporation and 
any affiliate thereof; or any Federal Home Loan Bank; the term 
``regulated entities'' means, collectively, the Federal National 
Mortgage Association and any affiliate thereof; the Federal Home Loan 
Mortgage Corporation and any affiliate thereof; and the Federal Home 
Loan Banks.
    Safety and Soundness Act means the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.), as 
amended by the Housing and Economic Recovery Act of 2008 (HERA), Public 
Law 110-289, 122 Stat. 2654 (2008).
    Security means all interests in debt or equity instruments. The term 
includes, without limitation, secured and unsecured bonds, debentures, 
notes, securitized assets and commercial paper including loans 
securitized by mortgages or deeds of trust and securities backed by such 
instruments, as well as all types of preferred and common stock. The 
term encompasses current and contingent ownership interests including 
any beneficial or legal interest derived from a trust. Such interest 
includes any right to acquire or dispose of any long or short position 
in such securities and also includes, without limit, interests 
convertible into such securities, as well as options, rights, warrants, 
puts, calls and straddles with respect thereto. The term shall not, 
however, be construed to include deposit accounts, such as checking, 
savings, or money market deposit accounts.



Sec.  9001.103  Waivers.

    (a) General. The DAEO may waive any provision of this part upon 
finding that the waiver will not result in conduct inconsistent with 5 
CFR part 2635 or otherwise prohibited by law, and that application of 
the provision is not necessary to ensure public confidence in the 
impartiality and objectivity with which the programs of FHFA are 
administered. Each waiver shall be in writing and supported by a 
statement of the facts and findings upon which it is based and may 
impose appropriate conditions, including but not limited to requiring 
the employee to execute a written disqualification statement or an 
agreement not to acquire additional securities.
    (b) Waiver of prohibitions relating to ownership or control of 
securities. The DAEO may grant a waiver permitting the employee or the 
employee's spouse or minor children to own or control, directly or 
indirectly, any security prohibited under Sec.  9001.104, if, in 
addition to the standards under paragraph (a) of this section:
    (1) Extenuating circumstances exist, such as ownership or control of 
the security was acquired:
    (i) Prior to employment with FHFA;
    (ii) Through inheritance, gift, merger, acquisition, or other change 
in corporate structure, or otherwise without specific intent on the part 
of the employee, or employee's spouse or minor children, to acquire the 
security; or
    (iii) By an employee's spouse or minor children as part of a 
compensation package in connection with employment or prior to marriage 
to the employee;
    (2) The amount of the prohibited financial interest has a market 
value of less than the de minimis amount set forth in 5 CFR 2640.202(a);
    (3) The employee makes a prompt and complete written disclosure of 
the interest; and
    (4) If the employee is required to disqualify himself or herself 
from certain assignments, the disqualification does not unduly interfere 
with the full performance of the employee's duties.



Sec.  9001.104  Prohibited financial interests.

    (a) General prohibition. This section applies to all employees, 
except special Government employees. Except as permitted in paragraph 
(c) of this section, an employee or an employee's spouse or minor 
children, shall not directly or indirectly own or control securities 
owned, issued, guaranteed, securitized, or collateralized by a regulated 
entity.
    (b) Restrictions arising from third-party relationships. If any of 
the entities listed in paragraphs (b)(1) through (6) of this section 
owns securities that an employee is prohibited from owning directly by 
paragraph (a) of this section,

[[Page 1031]]

the employee is deemed to hold the securities indirectly. The entities 
are--
    (1) A partnership in which the employee or employee's spouse or 
minor children are general partners;
    (2) A partnership in which the employee or employee's spouse or 
minor children individually or jointly hold more than a 10 percent 
limited partnership interest;
    (3) A closely held corporation in which the employee or employee's 
spouse or minor children individually or jointly hold more than a 10 
percent equity interest;
    (4) A trust in which the employee or employee's spouse or minor 
children have a legal or beneficial interest;
    (5) An investment club or similar informal investment arrangement 
between the employee or employee's spouse or minor children and others; 
or
    (6) Any other entity in which the employee or employee's spouse or 
minor children individually or jointly hold more than a 10 percent 
equity interest.
    (c) Exceptions to prohibition for certain interests. Notwithstanding 
paragraphs (a) and (b) of this section, an employee or an employee's 
spouse or minor children may directly or indirectly own or control:
    (1) A security for which a waiver has been granted pursuant to Sec.  
9001.103; and
    (2) An interest in a publicly-traded or publicly-available 
diversified mutual fund or other collective diversified investment fund, 
including a widely-held pension or other retirement fund if:
    (i) Neither the employee, the employee's spouse, nor the employee's 
minor children exercise or have the ability to exercise control over the 
financial interests held by the fund; and
    (ii) The fund does not indicate in its prospectus the objective or 
practice of concentrating its investments in securities of a regulated 
entity or regulated entities generally, and less than 25 percent of the 
total holdings of the fund are comprised of securities owned, issued, 
guaranteed, securitized, or collateralized by one or more regulated 
entities.
    (d) Reporting and divestiture. An employee must provide, in writing, 
to the DAEO any financial interest prohibited under paragraph (a) of 
this section acquired prior to the effective date of this part or the 
commencement of employment with FHFA or without specific intent, as 
through gift, inheritance, or marriage, within 30 calendar days from the 
effective date of this part, commencement of employment with FHFA, or 
acquisition of such interest. Such financial interest must be divested 
within 90 calendar days from the date reported unless a waiver is 
granted in accordance with Sec.  9001.103.



Sec.  9001.105  Outside employment.

    (a) Prohibited outside employment. Employees, except special 
Government employees, shall not engage in:
    (1) Employment with a person or entity, other than a State or local 
government, that is registered as a lobbyist under the Lobbying 
Disclosure Act of 1995 (2 U.S.C. chapter 26) and engages in lobbying 
activities concerning FHFA programs; or
    (2) Employment with any regulated entity or with the Office of 
Finance of the Federal Home Loan Bank System.
    (b) Prior approval for and concurrence with other outside 
employment--(1) Except as provided in paragraph (b)(2) of this section, 
before engaging in any outside employment that is not prohibited under 
paragraph (a) of this section, with or without compensation, an 
employee, other than a special Government employee, must obtain written 
approval from his or her supervisor and the concurrence of the DAEO. 
Nonetheless, special Government employees remain subject to other 
statutory and regulatory provisions governing their outside activities, 
including 18 U.S.C. 203(c) and 205(c), as well as applicable provisions 
of 5 CFR part 2635.
    (2) An employee, other than a special Government employee, who 
before the effective date of this part or commencement of employment 
with FHFA commenced engaging in outside employment that is not 
prohibited under paragraph (a) of this section must request written 
approval from his or her supervisor and the concurrence of the DAEO 
within 30 calendar days of the effective date of this part or 
commencement of employment with FHFA. The employee may continue engaging 
in the outside employment while the request is under review.

[[Page 1032]]

    (c) Definition of outside employment. For purposes of paragraph (b) 
of this section, outside employment means any form of non-Federal 
employment or business relationship involving the provision of personal 
services, whether or not for compensation. It includes, but is not 
limited to, services as an officer, director, employee, agent, advisor, 
attorney, consultant, contractor, general partner, trustee, teacher, or 
speaker. It includes writing when done under an arrangement with another 
person or entity for production or publication of the written product. 
The definition does not include positions as trustee for a family trust 
for which the only beneficiaries are the employee, the employee's 
spouse, the employee's minor or dependent children, or any combination 
thereof. The definition also does not include participation in the 
activities of a nonprofit charitable, religious, professional, social, 
fraternal, educational, recreational, public service or civic 
organization, unless:
    (1) The employee will receive compensation other than reimbursement 
of expenses;
    (2) The organization's activities are devoted substantially to 
matters relating to the employee's official duties as defined in 5 CFR 
2635.807(a)(2)(i)(B) through (E) and the employee will serve as officer 
or director of the organization; or
    (3) The activities will involve the provision of consultative or 
professional services. Consultative services means the provision of 
personal services by an employee, including the rendering of advice or 
consultation, which requires advanced knowledge in a field of science or 
learning customarily acquired by a course of specialized instruction and 
study in an institution of higher education, hospital, or similar 
facility. Professional services means the provision of personal services 
by an employee, including the rendering of advice or consultation, which 
involves application of the skills of a profession as defined in 5 CFR 
2636.305(b)(1) or involves a fiduciary relationship as defined in 5 CFR 
2636.305(b)(2).

    Note to Sec.  9001.105(c): There is a special approval requirement 
set out in both 18 U.S.C. 203(d) and 205(e), respectively, for certain 
representational activities otherwise covered by the conflict of 
interest restrictions on compensation and activities of employees in 
claims against and other matters affecting the Government. Thus, an 
employee who wishes to act as agent or attorney for, or otherwise 
represent his or her parents, spouse, children, or any person for whom, 
or any estate for which, he or she is serving as guardian, executor, 
administrator, trustee, or other personal fiduciary in such matters must 
obtain the approval required by law of the Government official 
responsible for the employee's appointment in addition to the regulatory 
approval required in this section.

    (d) Procedure for requesting approval and concurrence--(1) The 
approval required by paragraph (b) of this section shall be requested by 
e-mail or other form of written correspondence in advance of engaging in 
outside employment as defined in paragraph (c) of this section.
    (2) The request for approval to engage in outside employment shall 
set forth, at a minimum:
    (i) The name of the employer or organization;
    (ii) The nature of the activity or other work to be performed;
    (iii) The title of the position; and
    (iv) The estimated duration of the outside employment.
    (3) Upon a significant change in the nature or scope of the outside 
employment or in the employee's official position within FHFA, the 
employee must, within seven calendar days of the change, submit a 
revised request for approval and concurrence.
    (e) Standard for concurrence. The DAEO may concur with the 
supervisor's approval required by paragraph (b) of this section only 
upon his or her written determination that the outside employment is not 
expected to involve conduct prohibited by statute or Federal regulation, 
including 5 CFR part 2635 and this part.
    (f) Issuance of instructions. The DAEO may issue written 
instructions governing the submission of requests for approval of and 
concurrence with outside employment under paragraph (d) of this section. 
The instructions may exempt categories of employment from the prior 
approval and concurrence requirement of paragraph (b) of this section 
based on a determination by the DAEO that employment within those

[[Page 1033]]

categories of employment will generally be approved and is not likely to 
involve conduct prohibited by Federal law or regulation, including 5 CFR 
part 2635 and this part.



Sec.  9001.106  Restrictions resulting from employment of family 
and household members.

    (a) Disqualification of employee. An employee may not participate in 
any particular matter in which a regulated entity is a party if the 
regulated entity employs as an employee or a consultant his or her 
spouse, child, parent, or sibling, or member of his or her household 
unless the DAEO has authorized the employee to participate in the matter 
using the standard set forth in 5 CFR 2635.502(d).
    (b) Reporting certain relationships. Within 30 calendar days of the 
spouse, child, parent, sibling, or member of the employee's household 
being employed by the regulated entity, the employee shall provide in 
writing notice of such employment to the DAEO.



Sec.  9001.107  Other limitations.

    (a) Director and Deputy Directors. The Director, the Deputy Director 
of the Division of Enterprise Regulation, the Deputy Director of the 
Division of Federal Home Loan Bank Regulation, and the Deputy Director 
for Housing Mission and Goals are subject to additional financial 
interest limitations as set forth in section 1312(g) of the Safety and 
Soundness Act, 12 U.S.C. 4512(g).
    (b) Financial interests in Bank members and other financial 
institutions. If an employee or the spouse or minor children of the 
employee directly or indirectly owns a financial interest in a member of 
a Bank or in a financial institution such as a mortgage bank, mortgage 
broker, bank, thrift, or other financial institution that originates, 
insures, or services mortgages that are owned, guaranteed, securitized, 
or collateralized by a regulated entity, the employee is cautioned not 
to violate the statutory prohibition against financial conflicts of 
interest set forth in 18 U.S.C. 208. The government-wide de minimis and 
other exceptions set forth in 5 CFR 2640.202 are applicable to the 
ownership or control of interests in such financial institutions. 
Employees are encouraged to seek a determination from the DAEO as to 
whether the financial interest in the member of the Bank or in the 
financial institution creates a financial conflict of interest or an 
appearance of a conflict of interest and whether the employee should 
disqualify himself or herself from participating in an official capacity 
in a particular matter involving the financial institution.



Sec.  9001.108  Prohibited recommendations.

    Employees shall not make any recommendation or suggestion, directly 
or indirectly, concerning the acquisition, sale, or divestiture of 
securities of a regulated entity.



Sec.  9001.109  Prohibited purchase of assets.

    An employee or the employee's spouse or minor children shall not 
purchase, directly or indirectly, any real or personal property from a 
regulated entity, unless it is sold at public auction or by other means 
which would assure that the selling price is the asset's fair market 
value.

                       PARTS 9002	9099 [RESERVED]

[[Page 1035]]



       CHAPTER LXXXIII--SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN 
                             RECONSTRUCTION




  --------------------------------------------------------------------
Part                                                                Page
9300

[Reserved]

9301            Disclosure of records and information.......        1037
9302            Requests for testimony or the production of 
                    records in a court or other proceedings 
                    in which the United States is not a 
                    party...................................        1048
9303            Supplemental standards of ethical conduct 
                    for employees of the Office of the 
                    Special Inspector General for 
                    Afghanistan Restruction.................        1052
9304-9399

 [Reserved]

[[Page 1037]]

                          PART 9300 [RESERVED]



PART 9301_DISCLOSURE OF RECORDS AND INFORMATION--Table of Contents





                  Subpart A_Freedom of Information Act

 Procedures for Disclosure of Records Under the Freedom of Information 
                                   Act

Sec.
9301.1 In general.
9301.2 Authority and functions.
9301.3 Organization.

                               Procedures

9301.4 Availability of records.
9301.5 Accessing records without request.
9301.6 Requesting records.

                                  Costs

9301.7 Definitions.
9301.8 Fees in general.
9301.9 Fees for categories of requesters.
9301.10 Other charges.
9301.11 Payment and waiver.

                          Subpart B_Privacy Act

9301.12 Purpose and scope.
9301.13 Rules for determining if an individual is the subject of a 
          record.
9301.14 Requests for access.
9301.15 Access to the accounting of disclosures from records.
9301.16 Requests for copies of records.
9301.17 Requests to amend records.
9301.18 Request for review.
9301.19 Schedule of fees.
9301.20 Exemptions.



                  Subpart A_Freedom of Information Act

    Authority: 5 U.S.C. 552; Pub. L. No. 110-175, 121 Stat. 2524 (2007); 
5 U.S.C. 301 and 552; Exec. Order 12600, 52 FR 23781, 3 CFR, 1987 Comp., 
p. 235; Exec. Order No. 13392, 70 FR 75373-75377, 3 CFR, 2006 Comp., pp. 
216-200.

    Source: 77 FR 34180, June 11, 2012, unless otherwise noted.

 Procedures for Disclosure of Records Under the Freedom of Information 
                                   Act



Sec.  9301.1  In general.

    This information is furnished for the guidance of the public and in 
compliance with the requirements of the Freedom of Information Act 
(FOIA), 5 U.S.C. 552, as amended. This subpart should be read in 
conjunction with the FOIA. The Freedom of Information Act applies to 
third-party requests for documents concerning the general activities of 
the government and of SIGAR in particular. When a U.S. citizen or an 
individual lawfully admitted for permanent residence requests access to 
his or her own records, it is considered a Privacy Act request. Such 
records are maintained by SIGAR under the individual's name or personal 
identifier. Although requests are considered either FOIA requests for 
Privacy Act requests, agencies process requests in accordance with both 
laws, which provides the greatest degree of lawful access while 
safeguarding an individual's privacy.

[77 FR 38171, June 27, 2012]



Sec.  9301.2  Authority and functions.

    Section 1229 of the National Defense Authorization Act for Fiscal 
Year 2008, Public Law 110-181, established the Special Inspector General 
for Afghanistan Reconstruction (SIGAR). SIGAR's mission under Sections 
1229 and 842 of Public Law 110-181, is to provide independent oversight 
of the treatment, handling, and expenditure of funds appropriated or 
otherwise made available for the reconstruction of Afghanistan; detect 
and deter fraud, waste, and abuse of U.S. funds; and promote actions to 
increase program economy, efficiency, and effectiveness.



Sec.  9301.3  Organization.

    SIGAR maintains its headquarters in Arlington, Virginia, and field 
offices in Kabul and elsewhere in Afghanistan.

                               Procedures



Sec.  9301.4  Availability of records.

    SIGAR provides records to individual requesters in response to FOIA 
requests. Records that are required by the FOIA to be made available for 
public inspection and copying are accessible on SIGAR's Web site, http:/
/www.sigar.mil. SIGAR will also identify records of interest to the 
public that

[[Page 1038]]

are appropriate for public disclosure, and then post these records.

[77 FR 38171, June 27, 2012]



Sec.  9301.5  Accessing records without request

    Certain SIGAR records, including the agency's Quarterly Report, 
audit reports, testimony, oversight plans, press releases, other public 
issuances, and records that are required by 5 U.S.C. 552(a)(2) to be 
made publicly available are available electronically from SIGAR's 
homepage at http://www.sigar.mil. SIGAR encourages requesters to visit 
its Web site before making a request for records under Sec.  9301.6.

[82 FR 712, Jan. 4, 2017]



Sec.  9301.6  Requesting records.

    (a) Written requests required. For records not available as 
described under Sec.  9301.5, requesters wishing to obtain information 
from SIGAR should submit a written request to SIGAR's FOIA Officer. 
Requests should be addressed to FOIA Officer, Office of the Special 
Inspector General for Afghanistan Reconstruction, 2530 Crystal Drive, 
Arlington, VA 22202. As there may be delays in mail delivery, it is 
advisable to send the request via facsimile to (703) 601-3804 or by 
email to sigar. pentagon. gen-coun. mbx. foia@ mail. mil.
    (b) Contents of requests. Requests should be as specific as possible 
and should reasonably specify the records sought so that the records can 
be located with a reasonable amount of effort. The request should 
identify the desired record or describe it, and include information such 
as the date, title or name, author, recipient, and subject matter of the 
record, where possible. The request should also include a statement of 
the requester's willingness to pay fees, or request a fee waiver. The 
words ``FOIA REQUEST'' or ``REQUEST FOR RECORDS'' should be clearly 
marked on the cover letter, letter, and/or envelope.
    (c) Response to requests--(1) Processing. SIGAR will provide an 
individualized tracking number, and estimated date of completion, and a 
brief description of the subjects of the request in an acknowledgement 
letter to the requester. The FOIA Officer shall determine within 20 days 
(except Saturdays, Sundays, and federal holidays) after receiving a 
request for records, whether it is appropriate to grant or deny the 
request. The 20-day period may be tolled once if the FOIA Officer 
requests information from the requestor or if additional time is 
necessary to clarify issues with the requestor regarding a fee 
assessment.
    (i) Request granted. If the FOIA Officer decides to grant the 
request, either in-full or in-part, the FOIA Officer shall promptly 
provide the requester written notice of the decision. The FOIA Officer 
shall include with the notice both the requested records and a copy of 
the decision. The notice shall also describe the procedure for filing an 
appeal.
    (ii) Adverse determinations. If the FOIA Officer denies the request, 
in full or part, or applies exemptions to withhold requested documents, 
the FOIA Officer shall provide the requester written notice of the 
adverse determination together with the approximate number of pages of 
information withheld and the exemption under which the information was 
withheld. SIGAR will indicate, if technically feasible, the amount of 
information deleted and the exemption under which the deletion is made 
at the place in the record where the deletion was made. SIGAR will also 
indicate the exemption under which a deletion is made on the released 
portion of the record, unless including that indication would harm an 
interest protected by the exemptions. The notice shall also describe the 
procedure for filing an appeal. SIGAR will further notify the requester 
of their right to seek assistance from SIGAR's FOIA Public Liaison or 
dispute resolution services from the FOIA Public Liaison or the Office 
of Government Information Services in the case of an adverse 
determination.
    (iii) Consultations and referrals: When SIGAR receives a request for 
a record in its possession, it will determine whether another agency of 
the Federal Government, is better able to determine whether the record 
is exempt from disclosure under the FOIA and, if so, whether it should 
be disclosed as a

[[Page 1039]]

matter of administrative discretion. If SIGAR determines that it is best 
able to process the record in response to the request, then it will do 
so. If SIGAR determines that it is not best able to process the record, 
then it will either:
    (A) Respond to the request regarding that record, after consulting 
with the agency best able to determine whether to disclose it and with 
any other agency that has a substantial interest in it; or
    (B) Refer the responsibility for responding to the request regarding 
that record to the agency that originated the record (but only if that 
agency is subject to the FOIA). Ordinarily, the agency that originated a 
record will be presumed to be best able to determine whether to disclose 
it.
    (2)(i) Expedited processing. At the time a requester submits an 
initial request for records the requester may ask the FOIA Officer in 
writing to expedite processing of the request. The request for expedited 
processing must be accompanied by a written statement, which shall state 
that it is true and correct to the best of the requester's knowledge and 
belief, explaining why expedited processing is warranted. The FOIA 
Officer shall generally grant requests for expedited processing of 
requests for records, and appeals of denials under paragraph (d)(2) of 
this section, whenever the FOIA Officer determines that:
    (A) Failure to obtain the requested records on an expedited basis 
could reasonably pose a threat to a person's life or physical safety; or
    (B) With respect to a request made by a person primarily engaged in 
disseminating information, there is an urgency to inform the public 
about Government activity that is the specific subject of the FOIA 
request.
    (ii) The FOIA Officer shall ordinarily decide within ten calendar 
days after receiving a request for expedited processing whether to grant 
it and shall notify the requester of the decision. If the FOIA Officer 
grants a request for expedited processing, the FOIA Officer shall 
process the request as soon as practicable. If the FOIA Officer denies a 
request for expedited processing, SIGAR shall act expeditiously on any 
appeal of that denial.
    (3) Extension for unusual circumstances--
    (i) In general. If the FOIA Officer determines that unusual 
circumstances exist, the FOIA Officer may extend for no more than ten 
days (except Saturdays, Sundays and Federal holidays) the time limits 
described in paragraph (c)(1) of this section by providing written 
notice of the extension to the requester. The FOIA Officer shall include 
with the notice a brief statement of the reason for the extension and 
the date the FOIA Officer expects to make the determination. If the 
extension goes beyond ten working days, the FOIA Officer will include a 
notification of the requester's right to seek dispute resolutions 
services from the Office of Government Information Services.
    (ii) Additional procedures. The FOIA Officer shall provide written 
notice to the requester if the FOIA Officer decides that the 
determination cannot be made within the time limit described in 
paragraph (c)(3)(i) of this section. The notice shall afford the 
requester an opportunity to limit the scope of the request to the extent 
necessary for the FOIA Officer to process it within that time limit or 
an opportunity to arrange a longer period for processing the request.
    (d) Appeals--(1) Initiating appeals. Requesters not satisfied with 
the FOIA Officer's written decision may request SIGAR's FOIA Appellate 
Authority to review the decision. Appeals must be delivered in writing 
within 90 days of the date of the decision and shall be addressed to the 
FOIA Appellate Authority, Office of Privacy, Records & Disclosure, 
Special Inspector General for Afghanistan Reconstruction, 2530 Crystal 
Drive, Arlington, VA 22202. As there may be delays in mail delivery, it 
is advisable to Fax appeals to (703) 601-3804 or email to sigar. 
pentagon. gencoun. mbx. foia@ mail. mil. An appeal shall include a 
statement specifying the records that are the subject of the appeal and 
explaining why the Appellate Authority should grant the appeal.
    (2) Appeal decisions. The Appellate Authority shall decide the 
appeal within 20 days (except Saturdays, Sundays and federal holidays) 
from the date it receives the appeal. If the Appellate Authority denies 
the appeal in full or

[[Page 1040]]

part, the Appellate Authority shall promptly notify the requester in 
writing of the Appellate Authority's decision and the provisions for 
judicial review. If the Appellate Authority grants the appeal, the FOIA 
Officer shall notify the requester in writing and shall make available 
to the requester copies of the releasable records once the requester 
pays any fees that SIGAR assesses under Sec. Sec.  9301.8 through 
9301.10.
    (3) Dispute resolution. A response to an appeal will advise the 
requester that the 2007 FOIA amendments created the Office of Government 
Information Services (OGIS) to offer dispute resolution services to 
resolve disputes between FOIA requesters and Federal agencies as a 
nonexclusive alternative to litigation. Dispute resolution is a 
voluntary process. A requester may contact OGIS in any of the following 
ways: Office of Government Information Services, National Archives and 
Records Administration, 8601 Adelphi Road, College Park, MD 20740; 
Email: ogis@ nara. gov; Telephone: 202-741-5770; Facsimile: 202-741-
5769; Toll-free: 1-877-684-6448.

[77 FR 34180, June 11, 2012, as amended at 77 FR 38171, June 27, 2012; 
82 FR 712, Jan. 4, 2017; 82 FR 28549, June 23, 2017]

                                  Costs



Sec.  9301.7  Definitions.

    For purposes of this subpart:
    (a) Commercial use request means a request from or on behalf of a 
person who seeks information for a use or purpose that furthers the 
requester's or other person's commercial, trade, or profit interests.
    (b) Direct costs means those costs incurred in searching for and 
duplicating (and, in the case of commercial use requests, reviewing) 
documents to respond to a FOIA request. Direct costs include, for 
example, salaries of employees who perform the work and costs of 
conducting large-scale computer searches.
    (c) Duplicate means to copy records to respond to a FOIA request. 
Copies can take the form of paper, audio-visual materials, or electronic 
records, among others.
    (d) Educational institution means a preschool, a public or private 
elementary or secondary school, an institution of graduate higher 
education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, that operates a program or programs of scholarly research.
    (e) Fee category means one of the three categories that agencies 
place requesters in for the purpose of determining whether a requester 
will be charged fees for search, review and duplication.
    (f) Fee waiver means the waiver or reduction of processing fees if a 
requester can demonstrate that certain statutory standards are 
satisfied.
    (g) Non-commercial scientific institution means an institution that 
is not operated on a commercial basis and that operates solely for the 
purpose of conducting scientific research the results of which are not 
intended to promote any particular product or industry.
    (h) Representative of the news media means any person or entity that 
gathers information of potential interest to a segment of the public, 
uses its editorial skills to turn the raw materials into a distinct 
work, and distributes that work to an audience.
    (i) Review means to examine a record to determine whether any 
portion of the record may be withheld and to process a record for 
disclosure, including by redacting it.
    (j) Search for means look for and retrieve records covered by a FOIA 
request, including by looking page-by-page or line-by-line to identify 
responsive material within individual records.

[77 FR 38172, June 27, 2012]



Sec.  9301.8  Fees in general.

    SIGAR shall charge reasonable fees that recoup the full allowable 
direct costs it incurs in responding to FOIA requests. SIGAR will 
provide an estimated amount of fees, including a breakdown of the fees 
for search, review, and/or duplication. SIGAR may assess charges for 
time spent searching for records even if SIGAR is unable to locate the 
records or if the records are located and determined to be exempt from 
disclosure. In general, SIGAR

[[Page 1041]]

shall apply the following fee schedule, subject to Sec. Sec.  9301.9 
through 9301.11:
    (a) Manual searches. Time devoted to manual searches shall be 
charged on the basis of the salary of the employee(s) conducting the 
search (basic hourly rate(s) of pay for the employee).
    (b) Electronic searches. Fees shall reflect the direct cost of 
conducting the search. This will include the cost of operating the 
central processing unit for that portion of operating time that is 
directly attributable to searching for and printing records responsive 
to the FOIA request and operator/programmer salary attributable to the 
search.
    (c) Record reviews. Time devoted to reviewing records shall be 
charged on the same basis as under paragraph (a) of this section, but 
shall only be applicable to the initial review of records located in 
response to commercial use requests.
    (d) Duplication. Fees for copying paper records or for printing 
electronic records shall be assessed at a rate of $.10 per page. For 
other types of copies such as disks or audio visual tapes, SIGAR shall 
charge the direct cost of producing the document(s). If duplication 
charges are expected to exceed $25, the FOIA Officer shall notify the 
requester, unless the requester has indicated in advance a willingness 
to pay fees as high as those anticipated.
    (e) Advance payments required. (1) The FOIA Officer may require a 
requester to make an advance deposit of up to the amount of the entire 
anticipated fee before the FOIA Officer begins to process the request 
if:
    (i) The FOIA Officer estimates that the fee will exceed $250; or
    (ii) [Reserved]
    (2) The requester has previously failed to pay a fee in a timely 
fashion.
    (i) [Reserved]
    (ii) When the FOIA Officer requires a requester to make an advance 
payment, the 20-day period described in Sec.  9301.6(c)(1) shall begin 
when the FOIA Officer receives the payment.
    (f) No assessment of fee. SIGAR shall not charge a fee to any 
requester if:
    (1) The cost of collecting the fee would be equal to or greater than 
the fee itself; or
    (2) SIGAR fails to comply with any time limit under the FOIA for 
responding to a request for records where no unusual or exceptional 
circumstances apply.
    (3) SIGAR determines that unusual circumstances apply to the 
processing of a request, provides timely notice to the requester, and 
delay is excused for an additional ten days, but SIGAR still fails to 
respond within the timeframe established by the additional delay. This 
provision applies only to search fees or duplication fees for 
educational institution, non-commercial scientific institution, or 
representative of the news media requesters. However, the following 
exceptions shall apply:
    (i) Notwithstanding Sec.  9301.8(f)(3), if SIGAR determines that 
unusual circumstances apply and that more than 5000 pages are necessary 
to respond to the request, SIGAR may continue to charge search fees, or 
duplication fees for requesters in preferred status, for as long as 
necessary, after timely written notice has been made to the requester 
and SIGAR has discussed with the requester how the requester could 
effectively limit the scope of the request via written mail, electronic 
mail, or telephone, or made three good-faith attempts to do so.

[77 FR 34180, June 11, 2012, as amended at 77 FR 38172, June 27, 2012; 
82 FR 712, Jan. 4, 2017; 82 FR 28550, June 23, 2017]



Sec.  9301.9  Fees for categories of requesters.

    SIGAR shall assess fees for certain categories of requesters as 
follows:
    (a) Commercial use requesters. In responding to commercial use 
requests, SIGAR shall assess fees that recover the full direct costs of 
searching for, reviewing and duplicating records.
    (b) Educational institutions. SIGAR shall provide records to 
requesters in this category for the cost of duplication alone, excluding 
charges for the first 100 pages. To qualify for inclusion in this fee 
category, a requester must show that the request is authorized by and is 
made under the auspices of a qualifying institution and that the records 
are sought to further scholarly research, not an individual goal.
    (c) Representatives of the news media. SIGAR shall provide records 
to requesters in this category for the cost of

[[Page 1042]]

duplication alone, excluding charges for the first 100 pages.
    (d) All other requesters. SIGAR shall charge requesters who do not 
fall within paragraphs (a) through (c) of this section fees that recover 
the full direct cost of searching for and duplicating records, excluding 
charges for the first 100 pages of reproduction and the first two hours 
of search time.



Sec.  9301.10  Other charges.

    SIGAR may apply other charges, including the following:
    (a) Special charges. SIGAR shall recover the full cost of providing 
special services, such as sending records by an overnight delivery 
service, to the extent that SIGAR elects to provide them.
    (b) Interest charges. SIGAR may begin assessing interest charges on 
an unpaid bill starting on the 31st day following the day on which the 
FOIA Officer sent the billing. Interest shall be charged at the rate 
prescribed in 31 U.S.C. 3717 and will accrue from the date of billing.
    (c) Aggregating requests. When the FOIA Officer reasonably believes 
that a requester or a group of requesters acting in concert is 
attempting to divide a request into a series of requests within a 30-day 
period for the purpose of avoiding fees, the FOIA Officer shall 
aggregate those requests and charge accordingly.

[77 FR 34180, June 11, 2012, as amended at 77 FR 38172, June 27, 2012]



Sec.  9301.11  Payment and waiver.

    (a) Remittances. Payment shall be made in the form of check or money 
order made payable to the Treasury of the United States. At the time the 
FOIA Officer notifies a requestor of the applicable fees, the Officer 
shall inform the requestor of where to send the payment.
    (b) Waiver. SIGAR may waive all or part of any fee provided for in 
Sec. Sec.  9301.8 through 9301.9 when the FOIA Officer deems that as a 
matter of administrative discretion or disclosure of the information is 
in the general public's interest because it is likely to contribute 
significantly to public understanding of the operations or activities of 
the Government and is not primarily in the commercial interest of the 
requester. Requesters may request a waiver in their initial FOIA request 
letter. Requests for a fee waiver should explain how the information 
requested contributes to the public's understanding of the operations or 
activities of the government. In determining whether a fee should be 
waived, the FOIA Officer may consider whether:
    (1) The subject matter specifically concerns identifiable operations 
or activities of the government;
    (2) The information is already in the public domain;
    (3) Disclosure of the information would contribute to the 
understanding of the public-at-large as opposed to a narrow segment of 
the population;
    (4) Disclosure of the information would significantly enhance the 
public's understanding of the subject matter;
    (5) Disclosure of the information would further a commercial 
interest of the requester; and
    (6) The public's interest is greater than any commercial interest of 
the requester.

[77 FR 34180, June 11, 2012, as amended at 77 FR 38172, June 27, 2012]



                          Subpart B_Privacy Act

    Authority: Privacy Act of 1974, Pub. L. No. 93-579, 88 Stat. 1896, 
codified at 5 U.S.C. 552a(f) (agency rules).



Sec.  9301.12  Purpose and scope.

    The purpose of this subpart is to provide certain safeguards for an 
individual against the invasion of his or her personal privacy by SIGAR. 
This subpart is promulgated pursuant to the requirements applicable to 
all federal agencies contained in 5 U.S.C. 552a(f).



Sec.  9301.13  Rules for determining if an individual is the subject 
of a record.

    (a) Individuals desiring to know if a specific system of records 
maintained by SIGAR contains a record pertaining to them should address 
their inquiries to the Privacy Officer, Special Inspector General for 
Afghanistan Reconstruction, 2530 Crystal Drive, Arlington, VA 22202. As 
there may be delays in mail delivery, it is advisable to send the 
request via facsimile to (703) 601-3804 or by email to 
sigar.pentagon.gen-

[[Page 1043]]

[email protected]. The written inquiry should contain a specific 
reference to the system of records maintained by the SIGAR listed in the 
SIGAR Notice of Systems of Records, or it should describe the type of 
record in sufficient detail reasonably to identify the system of 
records. Notice of SIGAR systems of records subject to the Privacy Act 
will be published in the Federal Register, posted on the SIGAR public 
facing Web site, and copies of the notices will be available upon 
request to the Privacy Officer when so published. A compilation of such 
notices will also be made and published by the Office of the Federal 
Register, in accordance with 5 U.S.C. 552a(f).
    (b) At a minimum, the request should contain sufficient identifying 
information to allow SIGAR to determine if there is a record pertaining 
to the individual making the request in a particular system of records. 
In instances when the requester's identification is insufficient to 
ensure disclosure to the individual to whom the information pertains in 
view of the sensitivity of the information, SIGAR reserves the right to 
solicit from the person requesting access to a record additional 
identifying information.
    (c) Ordinarily the person requesting will be informed whether the 
named system of records contains a record pertaining to such person 
within 10 days of such a request (excluding Saturdays, Sundays and legal 
Federal holidays). Such a response will also contain or reference the 
procedures which must be followed by the individual making the request 
in order to gain access to the record.
    (d) Whenever a response cannot be made within the 10 days, the 
Privacy Officer will inform the person making the request the reasons 
for the delay and the date on which a response may be anticipated.



Sec.  9301.14  Requests for access.

    (a) Requirement for written requests. An individual desiring to gain 
access to a record pertaining to him or her in a system of records 
maintained by SIGAR must submit his or her request in writing in 
accordance with the procedures set forth in paragraph (b) of this 
section. Individuals employed by the SIGAR may make their requests on a 
regularly scheduled workday (Monday through Friday, excluding legal 
Federal holidays) between the hours of 9:00 a.m. and 5:30 p.m. Such 
requests for access by individuals employed by SIGAR need not be made in 
writing.
    (b) Procedures--(1) Content of the request. The request for access 
to a record in a system of records shall be addressed to the Privacy 
Officer at the address cited above, and shall name the system of records 
or contain a concise description of such system of records. The request 
should state that the request is pursuant to the Privacy Act of 1974. In 
the absence of such a statement, if the request is for a record 
pertaining to the person requesting access which is maintained by SIGAR 
in a system of records, the request will be considered under both the 
Privacy Act of 1974 and the Freedom of Information Act, depending on 
which would allow greater access to the records requested. The request 
should contain necessary information to verify the identity of the 
person requesting access (see paragraph (b)(2)(vi) of this section). In 
addition, such person should include any other information which may 
assist in the rapid identification of the record for which access is 
being requested (e.g., maiden name, dates of employment, etc.) as well 
as any other identifying information contained in and required by the 
SIGAR Notice of Systems of Records.
    (i) If the request for access follows a prior request under Sec.  
9301.1, the same identifying information need not be included in the 
request for access if a reference is made to that prior correspondence 
or a copy of the SIGAR response to that request is attached. If the 
individual specifically desires a copy of the record, the request should 
so specify under Sec.  9301.4.
    (ii) [Reserved]
    (2) SIGAR action on request. A request for access will ordinarily be 
answered within 10 days, except when the Privacy Officer determines 
otherwise, in which case the person making the request will be informed 
of the reasons for the delay and an estimated date by which the request 
will be answered. When the request can be answered

[[Page 1044]]

within 10 days, it shall include the following:
    (i) A statement that there is a record as requested or a statement 
that there is not a record in the systems of records maintained by 
SIGAR;
    (ii) A statement as to whether access will be granted only by 
providing a copy of the record through the mail; or the address of the 
location and the date and time at which the record may be examined. In 
the event the person requesting access is unable to meet the specified 
date and time, alternative arrangements may be made with the Privacy 
Officer;
    (iii) A statement, when appropriate, that examination in person will 
be the sole means of granting access only when the Privacy Officer has 
determined that it would not unduly impede the right of access of the 
person making the request.
    (iv) The amount of fees charged, if any (see Sec. Sec.  9301.6 and 
9301.7). (Fees are applicable only to requests for copies);
    (v) The name, title, and telephone number of the SIGAR official 
having operational control over the record; and
    (vi) The documentation required by SIGAR to verify the identity of 
the person making the request. At a minimum, SIGAR verification 
standards include the following:
    (A) Current or former SIGAR Employees. Current or former SIGAR 
employees requesting access to a record pertaining to them in a system 
of records maintained by SIGAR may, in addition to the other 
requirements of this section, and at the sole discretion of the official 
having operational control over the record, have his or her identity 
verified by visual observation. If the current or former SIGAR employee 
cannot be so identified by the official having operational control over 
the records, identification documentation will be required. The 
employee's common access card, annuitant identification, driver 
licenses, or the ``employee copy'' of any official personnel document in 
the record are examples of acceptable identification validation.
    (B) Other than current or former SIGAR employees. Individuals other 
than current or former SIGAR employees requesting access to a record 
pertaining to them in a system of records maintained by SIGAR must 
produce identification documentation of the type described in paragraph 
(b)(2)(vi)(A) of this section, prior to being granted access. The extent 
of the identification documentation required will depend on the type of 
record for which access is requested. In most cases, identification 
verification will be accomplished by the presentation of two forms of 
identification. Any additional requirements will be specified in the 
system of records notices published by SIGAR pursuant to 5 U.S.C. 
552a(e)(4).
    (C) Access granted by mail. For records to be made accessible by 
mail, the Privacy Officer shall, to the extent possible, establish 
identity by a comparison of signatures in situations where the data in 
the record is not so sensitive that unauthorized access could cause harm 
or embarrassment to the individual to whom they pertain. No 
identification documentation will be required for the disclosure to a 
person making a request of information under the FOIA, 5 U.S.C. 552. 
When, in the opinion of the Privacy Officer the granting of access 
through the mail could reasonably be expected to result in harm or 
embarrassment if disclosed to a person other than the individual to whom 
the record pertains, a notarized statement of identity or some similar 
assurance of identity will be required.
    (D) Unavailability of identification documentation. If an individual 
is unable to produce adequate identification documentation the 
individual will be required to sign a statement asserting identity and 
acknowledging that knowingly or willfully seeking or obtaining access to 
records about another person under false pretenses may result in a fine 
of up to $5,000. In addition, depending upon the sensitivity of the 
records to which access is sought, the official having operational 
control over the records may require such further reasonable assurances 
as may be considered appropriate; e.g., statements of other individuals 
who can attest to the identity of the person making the request.
    (E) Access by the parent of a minor, or by a legal guardian. A 
parent of a

[[Page 1045]]

minor, upon presenting suitable personal identification, may act on 
behalf of the minor to gain access to any record pertaining to the minor 
maintained by SIGAR in a system of records. A legal guardian may 
similarly act on behalf of an individual declared to be incompetent due 
to physical or mental incapacity or age by a court of competent 
jurisdiction, upon the presentation of the documents authorizing the 
legal guardian to so act, and upon suitable personal identification of 
the guardian.
    (F) Granting access when accompanied by another individual. When an 
individual requesting access to his or her record in a system of records 
maintained by SIGAR wishes to be accompanied by another individual 
during the course of the examination of the record, the individual 
making the request shall submit to the official having operational 
control of the record, a signed statement authorizing that person access 
to the record.
    (G) Granting access to individuals other than the subject of the 
record. SIGAR will not disclose any record which is contained in a 
system of records by any means of communication to any person, or to 
another agency, except pursuant to a written request by, or with the 
prior written consent of, the individual to whom the record pertains, 
pursuant to the Privacy Act of 1974.
    (H) Denial of access for inadequate identification documentation. If 
the official having operation control over the records in a system of 
records maintained by SIGAR determines that an individual seeking access 
has not provided sufficient identification documentation to permit 
access, the official shall consult with the Privacy Officer prior to 
finally denying the individual access.
    (vii) Medical records. The records in a system of records which are 
medical records shall be disclosed to the individual to whom they 
pertain in such manner and following such procedures as the Privacy 
Officer shall direct. When SIGAR in consultation with a physician, 
determines that the disclosure of medical information could have an 
adverse effect upon the individual to whom it pertains, SIGAR may 
transmit such information to a physician named by the individual.
    (viii) Exceptions. Nothing in this section shall be construed to 
entitle an individual the right to access to any information compiled in 
reasonable anticipation of litigation.



Sec.  9301.15  Access to the accounting of disclosures from records.

    Rules governing the granting of access to the accounting of 
disclosures are the same as those for granting access to the records 
(including verification of identity) outlined in Sec.  9301.14.



Sec.  9301.16  Requests for copies of records.

    Rules governing requests for copies of records are the same as those 
for the granting of access to the records (including verification of 
identity) outlined in Sec.  9301.14. (See also Sec.  9301.19 for rules 
regarding fees.)



Sec.  9301.17  Requests to amend records.

    (a) Requirement for written requests. Individuals desiring to amend 
a record that pertains to them in a system of records maintained by 
SIGAR must submit their request in writing in accordance with the 
procedures set forth herein unless this requirement is waived by the 
official having responsibility for the system of records. Records not 
subject to the Privacy Act of 1974 will not be amended in accordance 
with these provisions. However, individuals who believe that such 
records are inaccurate may bring this to the attention of SIGAR.
    (b) Procedures. (1)(i) The request to amend a record in a system of 
records shall be addressed to the Privacy Officer. Included in the 
request shall be the name of the system and a brief description of the 
record proposed for amendment. In the event the request to amend the 
record is the result of the individual's having gained access to the 
record in accordance with the provisions concerning access to records as 
set forth in this paragraph, copies of previous correspondence between 
the individual and SIGAR will serve in lieu of a separate description of 
the record.
    (ii) When the individual's identity has been previously verified 
pursuant

[[Page 1046]]

to Sec.  9301.14(b)(2)(vi), further verification of identity is not 
required as long as the communication does not suggest that a need for 
verification has reappeared. If the individual's identity has not been 
previously verified, SIGAR may require identification validation as 
described in Sec.  9301.14(b)(2)(vi). Individuals desiring assistance in 
the preparation of a request to amend a record should contact the 
Privacy Officer at the address cited above.
    (iii) The exact portion of the record the individual seeks to have 
amended should be clearly indicated. If possible, the desired proposed 
alternative language should also be set forth, or at a minimum, the 
facts which the individual believes are not accurate, relevant, timely, 
or complete should be set forth with such particularity as to permit 
SIGAR to understand the basis for the request and to make an appropriate 
amendment to the record.
    (iv) The request should also set forth the reasons why the 
individual believes his record is not accurate, relevant, timely, or 
complete. In order to avoid the retention by SIGAR of personal 
information merely to permit verification of records, the burden of 
persuading SIGAR to amend a record will be upon the individual. The 
individual must furnish sufficient facts or credible documentation to 
persuade the official in charge of the system of the inaccuracy, 
irrelevancy, untimeliness, or incompleteness of the record.
    (2) SIGAR action on the request. To the extent possible, a decision 
upon a request to amend a record will be made within 10 days, excluding 
Saturdays, Sundays and legal Federal holidays. In the event a decision 
cannot be made within this time frame, the individual making the request 
will be informed within 10 days of the expected date for a decision. The 
decision upon a request for amendment will include the following:
    (i) The decision of SIGAR whether to grant in whole, or deny any 
part of the request to amend the record.
    (ii) The reasons for the determination for any portion of the 
request which is denied.
    (iii) The name and address of the official with whom an appeal of 
the denial may be lodged.
    (iv) The name and address of the official designated to assist, as 
necessary, and upon request of, the individual making the request in the 
preparation of the appeal.
    (v) A description of the review of the appeal within SIGAR (see 
Sec.  9301.18).
    (vi) A description of any other procedures which may be required of 
the individual in order to process the appeal.



Sec.  9301.18  Request for review.

    (a) Individuals wishing to request a review of the decision by SIGAR 
with regard to an initial request to amend a record in accordance with 
the provisions of Sec.  9301.17, should submit the request for review in 
writing and, to the extent possible, include the information specified 
in Sec.  9301.17(a). Individuals desiring assistance in the preparation 
of their request for review should contact the Privacy Officer at the 
address provided herein.
    (b) The request for review should contain a brief description of the 
record involved or in lieu thereof, copies of the correspondence from 
SIGAR in which the request to amend was denied, and also should state 
the reasons why the individual believes that the disputed information 
should be amended. The request for review should make reference to the 
information furnished by the individual in support of his claim and the 
reasons, as required by Sec.  9301.17, set forth by SIGAR in its 
decision denying the amendment. In order to avoid the unnecessary 
retention of personal information, SIGAR reserves the right to dispose 
of the material concerning the request to amend a record if no request 
for review in accordance with this section is received by SIGAR within 
180 days of the mailing by SIGAR of its decision upon an initial 
request. A request for review received after the 180 day period may, at 
the discretion of the Privacy Officer, be treated as an initial request 
to amend a record.
    (c) The request for review should be addressed to the Appellate 
Authority, Office of the Special Inspector General for Afghanistan 
Reconstruction, 2530 Crystal Drive, Arlington, VA 22202. As there may be 
delays in mail delivery, it is advisable to send the request via 
facsimile to (703) 601-3804 or by email to

[[Page 1047]]

[email protected].
    (d) Final determinations on requests for reviews within SIGAR will 
be made by the Appellate Authority. Additional information may be 
requested by the Appellate Authority from the person requesting a review 
if necessary to make a determination.
    (e) The Appellate Authority will inform the person making the 
request in writing of the decision on the request for review within 30 
days (excluding Saturdays, Sundays and legal Federal holidays) from the 
date of receipt by SIGAR of the individual's request for review, unless 
the Appellate Authority extends the 30 day period for good cause. The 
extension and the reasons therefore will be sent by SIGAR to the 
individual within the initial 30 day period. Included in the notice of a 
decision being reviewed, if the decision does not grant in full the 
request for review, will be a description of the steps the individual 
may take to obtain judicial review of such a decision, and a statement 
that the individual may file a concise statement with SIGAR setting 
forth the individual's reasons for his disagreement with the decision 
upon the request for review. The SIGAR Privacy Officer has the authority 
to determine the ``conciseness'' of the statement, taking into account 
the scope of the disagreement and the complexity of the issues. Upon the 
filing of a proper concise statement by the individual, any subsequent 
disclosure of the information in dispute will have the information in 
dispute clearly noted and a copy of the concise statement furnished, 
setting forth its reasons for not making the requested changes, if SIGAR 
chooses to file such a statement. A copy of the individual's statement, 
and if it chooses, SIGAR's statement, will be sent to any prior 
transferee of the disputed information who is listed on the accounting 
required by 5 U.S.C. 552a(c).



Sec.  9301.19  Schedule of fees.

    (a) Prohibitions against charging fees. Individuals will not be 
charged for:
    (1) The search and review of the record;
    (2) Any copies of the record produced as a necessary part of the 
process of making the record available for access; or
    (3) Any copies of the requested record when it has been determined 
that access can only be accomplished by providing a copy of the record 
through the mail.
    (b) Waiver. The Privacy Officer may, at no charge, provide copies of 
a record if it is determined that the production of the copies is in the 
interest of the Government.
    (c) Fee schedule and method of payment. Fees will be charged as 
provided below except as provided in paragraphs (a) and (b) of this 
section.
    (1) Duplication of records. Records will be duplicated at a rate of 
$.10 per page for copying of 4 pages or more. There is no charge for 
copying fewer pages.
    (2) Where it is anticipated that the fees chargeable under this 
section will amount to more than $25, the person making the request 
shall be notified of the amount of the anticipated fee or such portion 
thereof as can readily be estimated. In instances where the estimated 
fees will greatly exceed $25, an advance deposit may be required. The 
notice or request for an advance deposit shall extend an offer to the 
person requesting to consult with the Privacy Officer in order to 
reformulate the request in a manner which will reduce the fees, yet 
still meet the needs of individuals making the request.
    (3) Fees must be paid in full prior to issuance of requested copies. 
In the event the person requesting is in arrears for previous requests 
copies will not be provided for any subsequent request until the arrears 
have been paid in full.
    (4) Remittances shall be in the form either of a personal check or 
bank draft drawn on a bank in the United States, or a postal money 
order. Remittances shall be made payable to the order of the Treasury of 
the United States and mailed or delivered to the Privacy Officer, Office 
of the Special Inspector General for Afghanistan Reconstruction, 2530 
Crystal Drive, Arlington, VA 22202.
    (5) A receipt for fees paid will be given upon request.

[[Page 1048]]



Sec.  9301.20  Exemptions.

    Systems of records maintained by SIGAR are authorized to be exempted 
from certain provisions of the Privacy Act under the general and 
specific exemptions set forth in the Act. In utilizing these exemptions, 
SIGAR is exempting only those portions of systems that are necessary for 
the proper functioning of SIGAR and that are consistent with the Privacy 
Act. Where compliance would not appear to interfere with or adversely 
affect the law enforcement process, and/or where it may be appropriate 
to permit individuals to contest the accuracy of the information 
collected, e.g., public source materials, the applicable exemption may 
be waived, either partially or totally, by SIGAR, in the sole discretion 
of SIGAR, as appropriate.
    (a) General exemptions. (1) Individuals may not have access to 
records maintained by SIGAR that were provided by another agency that 
has determined by regulation that such information is subject to general 
exemption under 5 U.S.C. 552a(j)(1). If such exempt records are the 
subject of an access request, SIGAR will advise the requester of their 
existence and of the name and address of the source agency, unless that 
information is itself exempt from disclosure.
    (2) The systems of records maintained by the Investigations 
Directorate (SIGAR-08), are subject to general exemption under 5 U.S.C. 
552a(j)(2). All records contained in record system SIGAR-08, 
Investigations Records, are exempt from all provisions of the Privacy 
Act except sections (b), (c)(1) and (2), (e)(4)(A) through (F), (e)(6), 
(7), (9), (10), and (11), and (i) to the extent to which they meet the 
criteria of section (j)(2). These exemptions are necessary to ensure the 
effectiveness of the investigative, judicial, and protective processes. 
These exemptions are necessary to ensure the proper functions of the law 
enforcement activity, to protect confidential sources of information, to 
fulfill promises of confidentiality, to prevent interference with the 
enforcement of criminal laws, to avoid the disclosure of investigative 
techniques, to avoid the endangering of the life and safety of any 
individual, to avoid premature disclosure of the knowledge of potential 
criminal activity and the evidentiary bases of possible enforcement 
actions, and to maintain the integrity of the law enforcement process.
    (3) The systems of records maintained by the Investigations 
Directorate (SIGAR-08) are exempted from 5 U.S.C. 552a (c)(3), (d), 
(e)(1), (e)(4)(G), (H), and (I), and (f) pursuant to the provisions of 5 
U.S.C. 552a(k)(1), (2), and (5). These exemptions are necessary to 
protect material required to be kept secret in the interest of national 
defense and foreign policy; to prevent individuals that are the subject 
of investigation from frustrating the investigatory process; to ensure 
the proper functioning and integrity of law enforcement activities; to 
prevent disclosure of investigative techniques; to maintain the 
confidence of foreign governments in the integrity of the procedures 
under which privileged or confidential information may be provided; to 
fulfill commitments made to sources to protect their identities and the 
confidentiality of information and to avoid endangering these sources 
and law enforcement personnel; and to ensure the proper functioning of 
the investigatory process, to ensure effective determination of 
suitability, eligibility, and qualification for employment and to 
protect the confidentiality of sources of information.
    (b) [Reserved]

[79 FR 37928, July 3, 2014]



PART 9302_REQUESTS FOR TESTIMONY OR THE PRODUCTION OF RECORDS 
IN A COURT OR OTHER PROCEEDINGS IN WHICH THE UNITED STATES 
IS NOT A PARTY--Table of Contents



    Authority: Pub. L. 110-181 (Jan. 28, 2008), Section 1229 (122 Stat. 
378-85), as amended, and Section 842 (122 Stat. 234-36), 10 U.S.C. 2302 
note; and 5 U.S.C. 301.

    Source: 77 FR 15562, Mar. 16, 2012, unless otherwise noted.



Sec.  9302.1  SIGAR Touhy regulations.

    (a) Applicability. (1) This section sets forth the policies and 
procedures of the Special Inspector General for Afghanistan 
Reconstruction (SIGAR or the

[[Page 1049]]

agency) regarding the testimony of employees and former employees as 
witnesses and the production or disclosure of SIGAR documents or 
information for use in legal proceedings in which the United States is 
not a party and where the demand is pursuant to a subpoena, order or 
request (collectively referred to in this section as a ``demand'').
    (2) This section does not apply to any legal proceeding in which an 
employee is to testify while on leave status regarding facts or events 
that are unrelated to the official business of SIGAR.
    (3)(i) Nothing in this section affects the rights and procedures 
governing public access to agency records pursuant to the Freedom of 
Information Act (5 U.S.C. 552) or the Privacy Act (5 U.S.C. 552a).
    (ii) Demands in legal proceedings in which the United States is not 
a party for the production of SIGAR records or information, or for the 
testimony of SIGAR employees, regarding information or documents that 
are protected by the Privacy Act (5 U.S.C. 552a), the Trade Secrets Act 
(18 U.S.C. 1905) or other statutes, must satisfy the requirements for 
disclosure set forth in those statutes and the applicable regulations of 
this part, before the records may be provided or testimony given.
    (4) This section is intended to provide guidance for the internal 
operations of SIGAR and to inform the public about SIGAR procedures 
concerning service of process upon SIGAR and its responses to demands. 
The procedures specified in this section, or the failure of any SIGAR 
employee to follow the procedures specified in this section, are not 
intended to, do not, and may not be relied upon to create a right or 
benefit, substantive or procedural, enforceable at law by a party 
against the United States.
    (b) Definitions. For purposes of this section:
    Agency counsel means: SIGAR's General Counsel or his or her 
designee.
    Demand means a subpoena, order or request for testimony, documents 
or information related to, or for possible use in, a legal proceeding in 
which the United States is not a party.
    Document means any record or other property, no matter what media, 
and including copies thereof, held by SIGAR, including without 
limitation, letters, Emails, telegrams, memoranda, facsimiles, reports, 
studies, calendar and diary entries, maps, graphs, pamphlets, notes, 
charts, tabulations, analyses, statistical or informational 
accumulations, summaries of meetings and conversations, film 
impressions, magnetic tapes and sound or mechanical reproductions.
    Employee means all employees or officers of SIGAR, including (for 
the purpose of this section only) contractors and any other individuals 
who have been appointed by, or are subject to the supervision, 
jurisdiction or control of SIGAR. The procedures established within this 
subpart also apply to former employees of SIGAR where specifically 
stated in this section.
    General Counsel means the General Counsel of SIGAR.
    Legal proceeding means all pretrial, trial and post-trial stages of 
all judicial or administrative actions, hearings, investigations, 
arbitrations or similar proceedings before courts, commissions, boards, 
grand juries, or other tribunals, foreign or domestic. This term 
includes all phases of discovery as well as responses to informal 
requests by attorneys or others involved in legal proceedings seeking 
interviews or the like.
    Official business means the authorized business of SIGAR as stated 
in the ``National Defense Authorization Act for Fiscal Year 2008,'' Pub. 
L. 110-181 (Jan. 28, 2008), Section 1229 (122 Stat. 378-85), as amended, 
and Section 842 (122 Stat. 234-36), 10 U.S.C. 2302 note.
    Testimony means an employee's statement in any form, including 
testifying before a court or other tribunal or board, giving 
depositions, interviews, telephonic, televised, videoconference or 
videotaped statements, and providing written responses to 
interrogatories, admission requests or other discovery.
    (c) SIGAR policy. (1) SIGAR was established by Section 1229 of the 
National Defense Authorization Act for Fiscal Year 2008, Public Law 110-
181 (January 28, 2008), as a wartime or overseas contingency operation 
oversight agency of the United States Government's Executive Branch. 
SIGAR's

[[Page 1050]]

Inspector General is appointed by the President of the United States. 
See Pub. L. 110-181, Section 1229(c). SIGAR performs oversight of 
Afghanistan reconstruction and security programs, operations and 
contracts to prevent and detect waste, fraud and abuse pursuant to 
Sections 1229 and 842 of Public Law 110-181. The records of an inspector 
general frequently contain sensitive law enforcement information that is 
protected from disclosure or obtained under guarantees of 
confidentiality.
    (2) In appropriate cases, the agency counsel shall notify the United 
States Department of Justice (DOJ) of the demand and coordinate with the 
DOJ to file any appropriate motions or other pleadings.
    (3) No current or former employee shall, in response to a demand, 
produce any SIGAR documents, provide testimony regarding any information 
relating to or based upon SIGAR documents, or disclose any information 
or produce materials acquired as part of the performance of that 
employee's official duties or official status, in a legal proceeding in 
which the United States is not a party, without the prior written 
authorization of the General Counsel. See United States ex rel. Touhy v. 
Ragen, 340 U.S. 462 (1951); and 5 U.S.C. 301 (``The head of an Executive 
department or military department may prescribe regulations for the 
government of his department, the conduct of its employees, the 
distribution and performance of its business, and the custody, use, and 
preservation of its records, papers, and property. This section does not 
authorize withholding information from the public or limiting the 
availability of records to the public.'')
    (d) Procedures for demand for testimony or production of documents. 
(1) A written demand directed to SIGAR for the testimony of a SIGAR 
employee or for the production of documents shall be served in 
accordance with the requirements of the Federal Rules of Civil 
Procedure, Federal Rules of Criminal Procedure, or applicable state 
procedures, as appropriate. If the demand is served by the U.S. mails, 
it should be addressed to the General Counsel, Special Inspector General 
for Afghanistan Reconstruction, 2530 Crystal Drive, Arlington, VA 22202-
3940. If the demand is served by overnight delivery service or courier, 
it should be directed to the General Counsel, Special Inspector General 
for Afghanistan Reconstruction, 2530 Crystal Drive, Arlington, VA 22202-
3940. SIGAR's acceptance of a demand shall not constitute an admission 
or waiver of any objection with respect to the propriety of 
jurisdiction, service of process, venue, or any other defense in law or 
equity available under applicable law.
    (2) A subpoena or other demand for testimony directed to an employee 
or former employee shall be served in accordance with the Federal Rules 
of Civil or Criminal Procedure or applicable State procedure; and a copy 
of the subpoena or demand shall be delivered to the General Counsel.
    (3)(i) Touhy Request. In court cases in which the United States or 
SIGAR is not a party, where the giving of testimony or the production of 
documents by SIGAR, or a current or former employee is desired, a 
verified statement (declaration under penalty of perjury) by the 
litigant or his counsel, setting forth the information with respect to 
which the testimony or production is desired (``Touhy Request''), must 
be submitted in order to obtain a decision concerning whether such 
testimony or production will be authorized by SIGAR. The Touhy Request 
should include: the title of the legal proceeding, the court or other 
forum, the requesting party's interest in the legal proceeding, a 
statement whether other evidence reasonably suited to the requester's 
needs is not otherwise available, and, if testimony is requested, the 
subject matter and intended use of the testimony, a statement whether 
document(s) could be provided in lieu of testimony to satisfy the 
request, and a statement that the requester will submit a check for 
costs of duplication at commercially reasonable rates to SIGAR if the 
request is granted. The purpose of these requirements is to assist the 
General Counsel in making a fair and informed decision under governing 
law regarding whether testimony or the production of document should be 
authorized and under what

[[Page 1051]]

conditions, if any. Permission to testify or produce documents will be 
limited to the areas of proposed testimony described in the Touhy 
Request.
    (ii) Agency counsel may consult or negotiate with an attorney for a 
party or the party, if not represented by an attorney, to refine or 
limit a demand so that compliance is less burdensome or to obtain 
information necessary to make the determination required by paragraph 
(e) of this section. Failure of the requester to cooperate in good faith 
to enable the General Counsel to make an informed determination under 
this subpart may serve as a basis for denying the Touhy Request.
    (iii) A determination under this section to comply or not to comply 
with the Touhy Request is without prejudice to the agency's assertion of 
privilege, lack of relevance, technical deficiency, or any other 
objection to the demand.
    (4)(i) Employees shall immediately refer all inquiries and demands 
made to SIGAR or its employees to the General Counsel.
    (ii) An employee who receives a demand shall forward the demand to 
the General Counsel, who will determine the agency's response to the 
demand under this section.
    (e) Factors to be considered by the General Counsel with respect to 
a Touhy Request. (1) In deciding whether to authorize the release of 
official information or the testimony of SIGAR personnel concerning 
official information (hereafter referred to as the ``disclosure''), the 
General Counsel shall consider the following factors:
    (i) Whether the demand is unduly burdensome to the agency or 
otherwise inappropriate under the applicable rules of discovery, 
evidence and procedure governing the litigation in which the demand 
arose, balanced against the need for the specific testimony or documents 
sought;
    (ii) Whether the demand is appropriate under the relevant 
substantive law of privilege and disclosure of Government information, 
or seeks information or documents protected from disclosure under the 
Freedom of Information Act, 5 U.S.C. 552(b), the Privacy Act, 5 U.S.C. 
552a, or the Inspector General Act of 1978, as amended, 5 U.S.C. App.;
    (iii) Whether the demand would interfere with SIGAR's statutory 
mandate stated in the ``National Defense Authorization Act for Fiscal 
Year 2008,'' Pub. L. 110-181 (Jan. 28, 2008), Section 1229 (122 Stat. 
378-85), as amended; Pub. L. 110-181, Section 842 (122 Stat. 234-36), 10 
U.S.C. 2302 note; or the Inspector General Act of 1978, as amended, 5 
U.S.C. App.;
    (iv) Whether the demand would be in the public interest;
    (v) The extent to which the time of employees for conducting 
official agency business would be compromised;
    (vi) Whether the request demonstrates that the information requested 
is relevant and material to the action pending, genuinely necessary to 
the proceeding, unavailable from other sources, and reasonable in scope; 
and
    (vii) Whether other similar requests are likely to have a 
deleterious cumulative effect on the expenditure of agency time and 
resources.
    (2) Among those demands and requests in response to which compliance 
will ordinarily not be authorized are those with respect to which any of 
the following factors exists:
    (i) The requested disclosure elicits information or documents 
protected by a statute, Executive Order or regulation, including but not 
limited to Section 7(b) of the Inspector General Act of 1978, as 
amended, 5 U.S.C. App. 3, section 7(b), or other prohibition from 
disclosure;
    (ii) The requested disclosure would interfere with ongoing 
enforcement proceedings, compromise constitutional rights, reveal the 
identity of an intelligence source, confidential informant or undercover 
agent, or disclose trade secrets or similar confidential commercial or 
financial information.
    (iii) The integrity of the administrative and deliberative processes 
of SIGAR would be jeopardized;
    (iv) The requested disclosure would not be appropriate under the 
rules of procedure governing the pending litigation or matter in which 
the demand arose;
    (v) The requested disclosure is not appropriate under the relevant 
substantive law concerning privilege; or

[[Page 1052]]

    (vi) The requested disclosure, except when production is in camera, 
would reveal information properly classified or other matters exempt 
from unrestricted disclosure.
    (3) All decisions granting or denying a Touhy Request must be in 
writing and, if a denial, provide the grounds for the decision in 
summary form based on one or more of the factors listed above.
    (f) Requests for opinion or expert testimony. (1) Pursuant to 5 CFR 
2635.805, an employee shall not provide, with or without compensation, 
opinion or expert testimony in any proceeding before a court or agency 
of the United States in which the United States is a party or has a 
direct and substantial interest, except on behalf of the United States 
or a party represented by the Department of Justice, without written 
approval of agency counsel.
    (2) Upon a showing by the requestor of exceptional need or unique 
circumstances, the General Counsel may, in writing, grant authorization 
for an employee, or former employee, to appear and testify.
    (3) Any expert or opinion testimony by a former employee of SIGAR 
shall be excepted from the restriction under 5 CFR 2635.805 where the 
testimony involves only general expertise gained while employed at 
SIGAR.
    (g) Procedures when agency counsel directs an employee not to 
testify or provide documents. (1) If agency counsel determines that an 
employee or former employee should not comply with a subpoena or other 
request for testimony or the production of documents, agency counsel 
will so inform the employee and the requesting party who submitted the 
demand.
    (2) If, despite the determination of the agency counsel that 
testimony should not be given or documents not be produced, a court of 
competent jurisdiction or other tribunal orders the employee or former 
employee to testify and/or produce documents, the employee shall 
promptly notify the General Counsel of such Order.
    (i) If agency counsel determines that no further legal review of, 
appeal from, or challenge to, the Order will be sought, agency counsel 
shall promptly inform the employee or former employee of said 
determination.
    (ii) If SIGAR determines to challenge an Order directing testimony 
or the production of documents in litigation in which the United States 
is not a party, the employee should not comply with the Order. The 
employee should appear at the time and place as commanded in the order 
or subpoena. If legal counsel cannot appear on behalf of the employee, 
the employee should produce a copy of this section and respectfully 
inform the Court or other legal tribunal that he/she has been advised by 
the General Counsel not to provide the requested testimony or documents 
pursuant to the decision of the United States Supreme Court in United 
States ex rel. Touhy v. Ragen, 340 U.S. 462 (1951), and this section. 
Agency counsel will coordinate with the DOJ to file such motions or 
other pleadings that may be deemed appropriate in the circumstances, 
such as, for example, a notice to remove the case from state court to 
Federal court, or a motion to quash or modify the subpoena, or a motion 
for a protective order.
    (h) Fees. In the event that a Touhy Request is granted, SIGAR may 
charge reasonable fees to parties seeking official information or 
records. Such fees are calculated to reimburse the Government for the 
expense of providing such information or records, and may include the 
costs of time expended by SIGAR employees to process and respond to the 
request; attorney time for reviewing the request and any responsive 
records and for related legal work in connection with the request; and 
reasonable expenses generated by materials and equipment used to search 
for, produce, and copy the responsive information or records.



PART 9303_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION--
Table of Contents



Sec.
9303.101 General.
9303.102 Prior approval for certain outside activities.

    Authority: 5 U.S.C. Section 7301; 5 U.S.C. App. (Ethics in 
Government Act of 1978, as amended), E.O. 12674, 54 FR 15159, 3 CFR 1989

[[Page 1053]]

Comp., p. 215, as modified by E.O. 12731, 55 FR 42547; 3 CFR 1990 Comp., 
p. 306; 5 CFR 2635.105, 2635.702, 2635.703, 2635.801, 2635.802, 
2635.803, and 2635.805.

    Source: 77 FR 20699, Apr. 6, 2012, unless otherwise noted.



Sec.  9303.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Office of the Special Inspector General for 
Afghanistan Reconstruction (SIGAR) and supplement the Standards of 
Ethical Conduct for Employees of the Executive Branch contained in 5 CFR 
part 2635. In addition to the regulations in 5 CFR part 2635 and this 
part, SIGAR employees are subject to the executive branch-wide financial 
disclosure regulations contained in 5 CFR part 2634; the executive 
branch regulations regarding outside employment at 5 CFR part 2636; and 
the regulations concerning executive branch financial interests 
contained in 5 CFR part 2640.



Sec.  9303.102  Prior approval for certain outside activities.

    (a) Prior approval requirement. An employee, other than a special 
Government employee, shall obtain written approval before engaging--with 
or without compensation--in the following outside activities:
    (1) Providing professional services involving the application of the 
same specialized skills or the same educational background as 
performance of the employee's official duties;
    (2) Teaching, speaking, or writing that relates to the employee's 
official duties;
    (3) Serving as an officer, director, trustee, general partner, 
employee, agent, attorney, consultant, contractor, or active participant 
for a prohibited source, except that prior approval is not required by 
this paragraph (a)(3) to provide such service without compensation 
(other than reimbursement of expenses) for a prohibited source that is a 
nonprofit charitable, religious, professional, social, fraternal, 
educational, recreational, public service, or civic organization, unless 
prior approval for the activity is required by paragraph (a)(1), (a)(2), 
or (a)(4) of this section; or
    (4) Providing services, other than clerical services or service as a 
fact witness, on behalf of any other person in connection with a 
particular matter:
    (i) In which the United States is a party;
    (ii) In which the United States has a direct and substantial 
interest; or
    (iii) If the provision of services involves the preparation of 
materials for submission to, or representation before, a Federal court 
or executive branch agency.
    (b) Submission of requests for approval. (1) Requests for approval 
shall be submitted in writing to SIGAR's Inspector General or Inspector 
General's designee through normal supervisory channels. Such requests 
shall include, at a minimum, the following:
    (i) The employee's name and position title;
    (ii) The name and address of the person or organization for whom or 
for which the outside activity is to be performed;
    (iii) A description of the proposed outside activity, including the 
duties and services to be performed while engaged in the activity; and
    (iv) The proposed hours that the employee will engage in the outside 
activity, and the approximate dates of the activity.
    (2) Together with the employee's request for approval, the employee 
shall provide a certification that:
    (i) The outside activity will not depend in any way on nonpublic 
information;
    (ii) No official duty time or Government property, resources, or 
facilities not available to the general public will be used in 
connection with the outside activity; and
    (iii) The employee has read subpart H (``Outside Activities'') of 5 
CFR part 2635.
    (3) Upon a significant change in the nature or scope of the outside 
activity or in the employee's official position, the employee shall 
submit a revised request for approval.
    (c) Approval of requests. Approval shall be granted only upon a 
determination by SIGAR's Inspector General or Inspector General's 
designee, in consultation with the General Counsel and the Director of 
Public Affairs, that

[[Page 1054]]

the outside activity is not expected to involve conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635.
    (d) Definitions. For purposes of this section:
    (1) Active participant has the meaning set forth in 5 CFR 
2635.502(b)(1)(v).
    (2) Nonpublic information has the meaning set forth in 5 CFR 
2635.703(b).
    (3) Professional services means the provision of personal services 
by an employee, including the rendering of advice or consultation, which 
involves application of the skills of a profession as defined in 5 CFR 
2636.305(b)(1).
    (4) Prohibited source has the meaning set forth in 5 CFR 
2635.203(d).
    (5) Relates to the employee's official duties has the meaning set 
forth in 5 CFR 2635.807(a)(2)(i)(B) through (a)(2)(i)(E).

                       PARTS 9304	9399 [RESERVED]

[[Page 1055]]



         CHAPTER LXXXIV--BUREAU OF CONSUMER FINANCIAL PROTECTION




  --------------------------------------------------------------------
Part                                                                Page
9400

[Reserved]

9401            Supplemental standards of ethical conduct 
                    for employees of the Bureau of Consumer 
                    Financial Protection....................        1057
9402-9499

 [Reserved]

[[Page 1057]]

                          PART 9400 [RESERVED]



PART 9401_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE BUREAU OF CONSUMER FINANCIAL PROTECTION--Table of Contents



Sec.
9401.101 General.
9401.102 Definitions.
9401.103 Prior approval for outside employment.
9401.104 Additional rules concerning outside employment for covered 
          employees.
9401.105 Additional rules concerning outside employment for Bureau 
          attorneys.
9401.106 Prohibited financial interests.
9401.107 Prohibition on acceptance of credit or indebtedness on 
          preferential terms from an entity supervised by the Bureau.
9401.108 Restrictions on seeking, obtaining, or renegotiating credit or 
          indebtedness from an entity that is a party or represents a 
          party to a matter to which an employee is assigned or may be 
          assigned.
9401.109 Disqualification of employees from particular matters involving 
          existing creditors or lenders.
9401.110 Prohibited recommendations.
9401.111 Restriction on participating in matters involving covered 
          entities.
9401.112 Prohibited purchase of assets.
9401.113 Waivers.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); E.O. 12674, 54 FR 15159 (April 12, 1989); 3 CFR, 1898 Comp., 
p.215, as modified by E.O. 12731, 55 FR 42547 (October 17, 1990); 3 CFR, 
1990 Comp., p. 306; 5 CFR 2635.105, 2635.403, 2635.502 and 2635.803.

    Source: 77 FR 25019, Apr. 27, 2012, unless otherwise noted.



Sec.  9401.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part supplement the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635 (OGE Standards) and 
prescribe the standards of ethical conduct applicable to employees of 
the Bureau of Consumer Financial Protection (Bureau).
    (b) Other regulations, guidance and procedures. Employees are 
required to comply with the OGE Standards and the CFPB Ethics 
Regulations, as well as with guidance and procedures issued by the 
Bureau pursuant to 5 CFR 2635.105(c). Employees also are subject to all 
other government-wide regulations concerning executive branch ethics 
including without limitation, financial disclosure regulations contained 
in 5 CFR part 2634, regulations concerning financial interests contained 
in 5 CFR part 2640, post-employment conflict of interest restrictions 
contained in 5 CFR part 2641, outside earned income limitations and 
employment and affiliation restrictions applicable to certain noncareer 
employees contained in 5 CFR part 2636, and the regulations concerning 
executive branch employee responsibilities and conduct contained in 5 
CFR part 735.



Sec.  9401.102  Definitions.

    For purposes of this part:
    CFPB Ethics Regulations means the supplemental ethics standards set 
forth in this part.
    Control means the possession, direct or indirect, of the power or 
authority to manage, direct, or oversee.
    Credit has the meaning set forth in 12 U.S.C. 5481(7) and as further 
defined in regulations promulgated by the Bureau to implement that 
statute. A person may have credit without any outstanding balance owed.
    Dependent child has the meaning set forth in 5 CFR 2634.105(d). It 
includes an employee's son, daughter, stepson, or stepdaughter if:
    (1) Unmarried, under the age of 21, and living in the employee's 
household; or
    (2) Claimed as a ``dependent'' on the employee's income tax return.
    Designated Agency Ethics Official (DAEO) means the official within 
the Bureau that the Director has appointed to coordinate and manage the 
ethics program at the Bureau, under 5 CFR 2638.104(a). For purposes of 
this part, the term ``DAEO'' also includes the Alternate DAEO appointed 
under 5 CFR 2638.104(d), and a designee of the DAEO or Alternate DAEO 
unless a particular provision says an authority is reserved to the DAEO.
    Director means the Director of the Bureau.
    Domestic partner means a person with whom a Bureau employee:
    (1) Has a close and committed personal relationship and both parties 
are

[[Page 1058]]

at least 18 years of age, are each other's sole domestic partner and 
intend to remain in the relationship indefinitely, and neither is 
married to, in a civil union with, or partnered with any other spouse or 
domestic partner;
    (2) Is not related by blood in a manner that would bar marriage 
under the laws of the jurisdiction in which the employee resides;
    (3) Is in a financially interdependent relationship in which both 
agree to be responsible for each other's common welfare and share in 
financial obligations; and
    (4) Has shared for at least six months the same regular and 
permanent residence in a committed relationship and both parties intend 
to do so indefinitely, or would maintain a common residence but for an 
assignment abroad or other employment-related, financial, or similar 
obstacle.
    Employee means an employee of the Bureau, other than a special 
Government employee.
    Entity supervised by the Bureau means a person that is subject to 
the Bureau's supervision authority pursuant to 12 U.S.C. 5514(a)(1) or 
5515(a) and in regulations promulgated thereunder, as identified on a 
list to be maintained by the Bureau.
    Indebted or indebtedness means a legal obligation under which an 
individual or borrower received money or assets on credit, and currently 
owes payment.
    Indebted to an entity means an obligation to make payments to an 
entity as a result of an indebtedness, whether originally made with that 
entity or with another entity. This includes without limitation, a 
servicer to whom payments are made.
    OGE Standards mean the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635.
    Participate means personal and substantial participation and has the 
meaning set forth in 5 CFR 2635.402(b)(4). An employee participates 
when, for example, the employee makes a decision, gives approval or 
disapproval, renders advice, provides a recommendation, conducts an 
investigation or examination, or takes an official action in a 
particular matter, and such involvement is of significance to the 
matter. It requires more than official responsibility, knowledge, 
perfunctory involvement, or involvement on an administrative or 
peripheral issue.
    Particular matter has the meaning set forth in 5 CFR 2635.402(b)(3). 
The term includes a matter that involves deliberation, decision, or 
action and is focused upon the interests of specific persons or a 
discrete and identifiable class of persons. It may include governmental 
action such as legislation, regulations, or policy-making that is 
narrowly focused on the interests of a discrete and identifiable class 
of persons.
    Particular matter involving specific parties has the meaning set 
forth in 5 CFR 2641.201(h). Such a matter typically involves a specific 
proceeding affecting the legal rights of the parties or an isolatable 
transaction or related set of transactions between identified parties. 
The term includes without limitation, a contract, audit, enforcement 
action, examination, investigation, litigation proceeding, or request 
for a ruling.
    Person has the same meaning set forth in 5 CFR 2635.102(k). It 
includes without limitation, an individual, corporation and subsidiaries 
it controls, company, association, firm, partnership, society, joint 
stock company, or any other organization or institution.
    Practice of law means the provision of legal advice or services 
where there is a client relationship of trust or reliance. One is 
presumed to be practicing law when engaging in any of the following 
conduct on behalf of another:
    (1) Preparing any legal document, including any deeds, mortgages, 
assignments, discharges, leases, trust instruments, or any other 
instruments intended to affect interests in real or personal property, 
wills, codicils, instruments intended to affect the disposition of 
property of decedents' estates, other instruments intended to affect or 
secure legal rights, and contracts except routine agreements incidental 
to a regular course of business;
    (2) Preparing or expressing legal opinions;
    (3) Appearing or acting as an attorney in any tribunal;
    (4) Preparing any claims, demands or pleadings of any kind, or any 
written

[[Page 1059]]

documents containing legal argument or interpretation of law, for filing 
in any court, administrative agency, or other tribunal;
    (5) Providing advice or counsel as to how any of the activities 
described in paragraphs (1) through (4) of this definition might be 
done, or whether they were done, in accordance with applicable law; or
    (6) Furnishing an attorney or attorneys, or other persons, to render 
the services described in paragraphs (1) through (5) of this definition.
    Security means an interest in debt or equity instruments. The term 
includes without limitation, secured and unsecured bonds, debentures, 
notes, securitized assets, commercial papers, and preferred and common 
stock. The term encompasses both current and contingent ownership 
interests; a beneficial or legal interest derived from a trust; a right 
to acquire or dispose of any long or short position in debt or equity 
interests; interests convertible into debt or equity interests; and 
options, rights, warrants, puts, calls, straddles, derivatives, and 
other similar interests. It does not include deposits; credit union 
shares; a future interest created by someone other than the employee or 
the employee's spouse or dependent child; or a right as a beneficiary of 
an estate that has not been settled.
    Special Government employee has the meaning set forth in 5 CFR 
2635.102(l).
    Spouse means an employee's husband or wife by lawful marriage, but 
does not include an employee's spouse if:
    (1) The employee and the employee's spouse are separated;
    (2) The employee and the employee's spouse live apart;
    (3) There is an intention to end the marriage or separate 
permanently; and
    (4) The employee has no control over the separated spouse's 
securities.
    Vested legal or beneficial interest means a present right or title 
to property, which carries with it an existing right of alienation, even 
though the right to possession or enjoyment may be postponed to some 
uncertain time in the future. This includes a future interest when one 
has a right, defeasible or indefeasible, to immediate possession or 
enjoyment of the property, upon the ceasing of another's interest.

[82 FRT 35883, Aug. 2, 2017]



Sec.  9401.103  Prior approval for outside employment.

    (a) General requirement. Before engaging in outside employment, an 
employee must obtain written approval from the employee's supervisor and 
the concurrence of the DAEO, except to the extent that the Bureau has 
issued an instruction or internal directive pursuant to paragraph (e) of 
this section exempting an activity or class of activities from this 
requirement.
    (b) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment, business 
relationship, or activity involving the provision of personal services 
by the employee, regardless of whether the services are compensated. It 
includes without limitation, personal services as an officer, director, 
employee, agent, advisor, attorney, consultant, contractor, general 
partner, trustee, teacher, speaker, or writer.

    Note to Sec.  9401.103(b): Both 18 U.S.C. 203(d) and 205(e) require 
special approval for certain representational activities in claims 
against and other matters affecting the interests of the Government. 
Thus, an employee who wishes to act as agent or attorney for or 
otherwise represent his or her parents, spouse, child, or a person for 
whom or for an estate for which he or she is serving as guardian, 
executor, administrator, trustee, or other personal fiduciary in such 
matters as described in those statutes shall obtain the approval of the 
Government official responsible for the employee's appointment in 
addition to the regulatory approval required in this section.

    (c) Standard for approval. Approval will be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute, the OGE Standards, or the CFPB Ethics 
Regulations in this part.
    (d) Renewed request for approval. Upon a significant change in 
either the nature, scope, or duties of the employee's outside employment 
or in the employee's official Bureau position, the employee shall submit 
a new request for approval.

[[Page 1060]]

    (e) DAEO responsibilities. The DAEO may issue instructions or 
internal directives governing the submission of requests for approval of 
outside employment and designating appropriate officials to act on such 
requests. The instructions or internal directives may exempt categories 
of employment from the prior approval requirement of this section based 
on a determination that employment within those categories generally 
would be approved and is not likely to involve prohibited conduct or 
create an appearance of lack of impartiality.



Sec.  9401.104  Additional rules concerning outside employment 
for covered employees.

    (a) Prohibited outside employment with an entity supervised by the 
Bureau. A covered employee shall not engage in compensated outside 
employment for an entity supervised by the Bureau or for an officer, 
director, or employee of such entity. For purposes of this section, 
``employment'' has the same meaning as set forth in Sec.  9401.103(b).
    (b) Use of professional licenses related to real estate. A covered 
employee who holds a license related to real estate, mortgage brokerage, 
property appraisals, or real property insurance is prohibited from using 
such license for the production of income. The DAEO, in consultation 
with senior management in the Division in which the employee works, may 
grant a limited waiver to this prohibition based on a written finding 
that the specific transaction which requires use of the license will not 
create an appearance of loss of impartiality or use of public office for 
private gain.
    (c) Definition of covered employee. For purposes of this section, 
``covered employee'' means:
    (1) An employee in the Division of Supervision, Enforcement, and 
Fair Lending;
    (2) An employee serving in an attorney position;
    (3) An employee in the Office of Research, serving as a section 
chief at Bureau pay band 71 or above or as a senior economist in the 
Compliance Analytics and Policy Section;
    (4) An employee serving in the Office of Consumer Response in an 
investigations position;
    (5) An employee required to file a Public Financial Disclosure 
Report (OGE Form 278e) under 5 CFR part 2634; or
    (6) Any other Bureau employee specified in a Bureau order or 
directive whose duties and responsibilities, as determined by the DAEO, 
require application of the prohibition on outside employment contained 
in this section to ensure public confidence that the Bureau's programs 
are conducted impartially and objectively.

[82 FR 35885, Aug. 2, 2017]



Sec.  9401.105  Additional rules concerning outside employment 
for Bureau attorneys.

    (a) Prohibited outside practice of law. In addition to the prior 
approval requirements under Sec.  9401.103 and the outside employment 
restrictions under Sec.  9401.104, an employee serving in an attorney 
position shall not engage in the practice of law outside the employee's 
official Bureau duties that might require the attorney to:
    (1) Take a position that is or appears to be in conflict with the 
interests of the Bureau; or
    (2) Interpret any statute, regulation, or rule administered or 
issued by the Bureau.
    (b) Exemption for self representation. Nothing in this section 
prevents a Bureau attorney from acting as an agent or attorney for or 
otherwise representing himself or herself in the outside practice of 
law, except:
    (1) In those matters in which the attorney has participated 
personally and substantially as a Government employee; or
    (2) In those matters which are the subject of the attorney's 
official responsibility.

[77 FR 25019, Apr. 27, 2012, as amended at 82 FR 35885, Aug. 2, 2017]



Sec.  9401.106  Prohibited financial interests.

    (a) Prohibited interests. Except as permitted by this section, an 
employee or an employee's spouse or minor child shall not own or control 
a security in:

[[Page 1061]]

    (1) An entity supervised by the Bureau; or
    (2) A collective investment fund that has a stated policy of 
concentrating its investments in the financial services or banking 
industry. A collective investment fund includes, without limitation, 
mutual funds, unit investment trusts (UITs), exchange traded funds 
(ETFs), real estate investment trusts (REITs), and limited partnerships.
    (b) Exceptions. Interests prohibited in paragraph (a) of this 
section do not include the ownership or control of a security in:
    (1) Collective investment funds. A publicly traded or publicly 
available collective investment fund if:
    (i) The fund does not have a stated policy of concentrating its 
investments in the financial services or banking industry; and
    (ii) Neither the employee nor the employee's spouse or minor child 
exercises or has the ability to exercise control over or selection of 
the financial interests held by the fund.
    (2) Diversified employee benefit plans. A pension or other 
retirement fund, trust, or plan established or maintained by an employer 
or an employee organization, or both, to provide its participants with 
medical, disability, death, unemployment, or vacation benefits, training 
programs, day care centers, scholarship funds, prepaid legal services, 
deferred income, or retirement income (employee plan), provided:
    (i) The employee plan does not have a stated policy of concentrating 
its investments in any industry, business, single country other than the 
United States, or bonds of a single State within the United States;
    (ii) The investments of the employee plan are administered by an 
independent trustee;
    (iii) The employee plan's trustee has a written policy of varying 
the plan investments;
    (iv) Neither the employee nor the employee's spouse or minor child 
participates in the selection of the employee plan's investments or 
designates specific plan investments (except for directing that 
contributions be divided among several different categories of 
investments, such as stocks, bonds, or mutual funds, which are available 
to plan participants); and
    (v) The employee plan is not a profit-sharing or stock bonus plan.
    (3) Federal retirement and thrift savings plans. Funds administered 
by the Thrift Plan for Employees of the Federal Reserve System, the 
Retirement Plan for Employees of the Federal Reserve System, the Thrift 
Savings Plan, or a Federal government agency.
    (4) State pension plans. A pension plan established or maintained by 
a State government or any political subdivision of a State government 
for its employees.
    (c) Reporting and divestiture of prohibited interests--(1) New 
employees. Within 30 calendar days from the start of employment with the 
Bureau, an employee must notify the DAEO in writing of a financial 
interest prohibited under paragraph (a) of this section that the 
employee or the employee's spouse or minor child acquired prior to the 
start of the employee's employment with the Bureau. The employee or the 
employee's spouse or minor child shall divest prohibited securities 
within 90 days after the start of the employee's employment at the 
Bureau.
    (2) Newly prohibited interest. Within 30 days after the Bureau 
updates and internally publishes a new list of entities supervised by 
the Bureau, an employee who owns or controls, or whose spouse or minor 
child owns or controls, a security in an entity newly added to that list 
must notify the DAEO in writing. The employee or the employee's spouse 
or minor child shall divest prohibited securities within 90 days after 
internal publication of the new list.
    (3) Interests acquired without specific intent. If an employee or an 
employee's spouse or minor child acquires a financial interest 
prohibited under paragraph (a) of this section as a result of marriage, 
inheritance, or otherwise without specific intent to acquire, the 
employee must notify the DAEO in writing within 30 days of the 
acquisition. The employee or the employee's spouse or minor child shall 
divest prohibited securities within 90 days of the acquisition.
    (d) Disqualification and divestiture--(1) Securities in entities 
supervised by the

[[Page 1062]]

Bureau. If an employee or an employee's spouse or minor child owns or 
controls a security in an entity that is prohibited under paragraph 
(a)(1) of this section, the employee shall immediately disqualify 
himself or herself from participating in all particular matters 
affecting that entity, unless and until the security is divested or the 
employee is granted a waiver pursuant to paragraph (e) of this section 
and the waiver includes an authorization allowing the employee to 
participate in such matters.
    (2) Securities in collective investment funds. If an employee or an 
employee's spouse or minor child owns or controls a security in a 
collective investment fund that is prohibited under paragraph (a)(2) of 
this section, the employee shall immediately disqualify himself or 
herself from participating in all particular matters affecting one or 
more holdings of the collective investment fund if the affected holding 
is invested in the financial services or banking industry, unless and 
until the collective investment fund is divested or the employee is 
granted a waiver pursuant to paragraph (e) of this section and the 
waiver includes an authorization allowing the employee to participate in 
such matters.
    (e) Waivers. Upon request by the employee, the DAEO in the DAEO's 
sole discretion has the authority to grant an individual waiver under 
this paragraph. The DAEO's authority to grant an individual waiver under 
this paragraph may not be delegated to any person except the Alternate 
DAEO. The DAEO, in consultation with senior management in the Division 
in which the employee works, may issue a written waiver permitting the 
employee or the employee's spouse or minor child to own or control a 
particular security that otherwise would be prohibited by this section, 
after considering all relevant factors. Relevant factors include, 
without limitation, whether:
    (1) Mitigating circumstances exist due to the way the employee or 
the employee's spouse or minor child acquired ownership or control of 
the security. Mitigating circumstances may include without limitation:
    (i) The employee or the employee's spouse or minor child acquired 
the security through inheritance, merger, acquisition, or other change 
in corporate structure, or otherwise without specific intent on the part 
of the employee or the employee's spouse or minor child; or
    (ii) The employee's spouse received the security as part of a 
compensation package in connection with employment or prior to marriage 
to the employee;
    (2) The employee makes a prompt and complete written disclosure of 
the security to the DAEO;
    (3) The disqualification of the employee from participating in 
particular matters pursuant to paragraph (d) of this section, as 
specified in the written waiver, would not unduly interfere with the 
full performance of the employee's duties; and
    (4) The granting of the waiver would not unduly undermine the 
public's confidence in the impartiality and objectivity with which:
    (i) The employee performs the employee's official Bureau duties; and
    (ii) The Division in which the employee works executes its programs 
and functions.
    (f) Covered third party entities. Immediately after becoming aware 
that a covered third party entity owns or controls a security that an 
employee would be prohibited from owning or controlling under paragraph 
(a) of this section, the employee shall report the interest in writing 
to the DAEO. The DAEO may require the employee to terminate the 
relationship with the covered third party entity, disqualify himself or 
herself from certain particular matters, or take other action as 
necessary to avoid a statutory violation, a violation of the OGE 
Standards, or the CFPB Ethics Regulations, including an appearance of 
misuse of position or loss of impartiality. For purposes of this 
paragraph, ``covered third party entity'' includes:
    (1) A partnership in which the employee or the employee's spouse or 
minor child is a general partner;
    (2) A partnership or closely held corporation in which the employee 
or the employee's spouse or minor child individually or jointly holds 
more than a 10 percent equity interest;

[[Page 1063]]

    (3) A trust in which the employee or the employee's spouse or minor 
child has a vested legal or beneficial interest;
    (4) An investment club or similar informal investment arrangement 
between the employee or the employee's spouse or minor child, and 
others;
    (5) A qualified profit sharing, retirement, or similar plan in which 
the employee or the employee's spouse or minor child has an interest; or
    (6) An entity in which the employee or the employee's spouse or 
minor child individually or jointly holds more than a 25 percent equity 
interest.

[82 FR 35885, Aug. 2, 2017]



Sec.  9401.107  Prohibition on acceptance of credit or indebtedness 
on preferential terms from an entity supervised by the Bureau.

    An employee or the employee's spouse or minor child may not accept 
credit from, become indebted to, or enter into a financial relationship 
with an entity supervised by the Bureau, unless the credit, 
indebtedness, or other financial relationship:
    (a) Is offered on terms and conditions no more favorable than those 
offered to the general public; and
    (b) Is not otherwise prohibited by law or inconsistent with the OGE 
Standards or the CFPB Ethics Regulations.

[82 FR 35886, Aug. 2, 2017]



Sec.  9401.108  Restrictions on seeking, obtaining, or renegotiating credit 
or indebtedness from an entity that is a party or represents a party 
to a matter to which an employee is assigned or may be assigned.

    (a) General rules regarding seeking, obtaining, or renegotiating 
credit or indebtedness--(1) Prohibition. While an employee is assigned 
to participate in a particular matter involving specific parties, the 
employee or the employee's spouse or minor child shall not seek, obtain, 
or renegotiate credit or indebtedness with an entity that is a party or 
represents a party to the matter. This prohibition also applies to a 
particular matter involving specific parties pending at the Bureau in 
which the employee is not currently participating but of which the 
employee is aware and believes it is likely that the employee will 
participate.
    (2) Cooling off period. The prohibition in paragraph (a)(1) of this 
section continues for two years after the employee's participation in 
the particular matter has ended.
    (b) Rules regarding credit or indebtedness secured by principal 
residence. Notwithstanding paragraph (a) of this section, an employee or 
an employee's spouse or minor child may seek, obtain, or renegotiate 
credit or indebtedness secured by residential real property with an 
entity, subject to the following conditions:
    (1) The residential real property is or will be the principal 
residence of the employee or the employee's spouse or minor child;
    (2) A minimum of three months have passed since the end of the 
employee's participation in each particular matter involving specific 
parties in which that entity was a party or represented a party;
    (3) The employee is disqualified from participating in particular 
matters involving specific parties in which that entity is a party or 
represents a party while the employee or the employee's spouse or minor 
child is seeking, obtaining, or renegotiating the credit or 
indebtedness;
    (4) The employee or the employee's spouse or minor child seeking, 
obtaining, or negotiating the credit or indebtedness must satisfy all 
financial requirements generally applicable to all applicants for the 
same type of credit or indebtedness for residential real property; and
    (5) The credit or indebtedness is obtained on terms and conditions 
no more favorable than those offered to the general public.
    (c) Specific rules for employee's spouse and minor child. The 
prohibitions in paragraphs (a) and (b) of this section do not apply when 
the employee's spouse or minor child is seeking, obtaining, or 
renegotiating credit or indebtedness and:
    (1) The credit or indebtedness is supported only by the income or 
independent means of the spouse or minor child;
    (2) The credit or indebtedness is obtained on terms and conditions 
no

[[Page 1064]]

more favorable than those offered to the general public; and
    (3) The employee does not participate in the negotiating for the 
credit or indebtedness or serve as co-maker, endorser or guarantor of 
the credit or indebtedness.
    (d) Disqualification requirement for credit or indebtedness sought 
by person related to an employee. An employee shall disqualify himself 
or herself from participating in a particular matter involving specific 
parties as soon as the employee learns that any of the following persons 
are seeking, obtaining, or renegotiating credit or indebtedness with an 
entity that is a party or represents a party to the matter:
    (1) The employee's spouse, domestic partner, or dependent child;
    (2) A partnership in which the employee or the employee's spouse, 
domestic partner, or dependent child is a general partner;
    (3) A partnership or closely held corporation in which the employee 
or the employee's spouse, domestic partner, or dependent child 
individually or jointly owns or controls more than a 10 percent equity 
interest;
    (4) A trust in which the employee or the employee's spouse, domestic 
partner, or dependent child has a vested legal or beneficial interest;
    (5) An investment club or similar informal investment arrangement 
between the employee or the employee's spouse, domestic partner, or 
dependent child, and others;
    (6) A qualified profit sharing, retirement, or similar plan in which 
the employee or the employee's spouse, domestic partner, or dependent 
child has an interest; or
    (7) An entity in which the employee or the employee's spouse, 
domestic partner, or dependent child individually or jointly holds more 
than a 25 percent equity interest.
    (e) Exemptions. The following forms of credit are exempted from the 
prohibitions in paragraphs (a) and (b) of this section and the 
disqualification requirement in paragraph (d) of this section, provided 
the credit is offered on terms and conditions no more favorable than 
those offered to the general public:
    (1) Revolving consumer credit or charge cards;
    (2) Overdraft protection on checking accounts and similar accounts; 
and
    (3) The provision of telephone, cable, gas, electricity, water, or 
other similar utility services provided on credit (i.e., the service is 
provided before payment is due such that consumers incur debt as they 
use the service and receive periodic bills for the services used).
    (f) Waivers. The DAEO, after consultation with senior management in 
the Division in which the employee works, may grant a written waiver 
from the prohibition in paragraphs (a) or (b) of this section or the 
disqualification requirement in paragraph (d) of this section, based on 
a determination that participation in matters otherwise prohibited by 
this section would not be prohibited by law (18 U.S.C. 208) or create an 
appearance of loss of impartiality or use of public office for private 
gain, and would not otherwise be inconsistent with the OGE Standards or 
the CFPB Ethics Regulations.

[82 FR 35886, Aug. 2, 2017]



Sec.  9401.109  Disqualification of employees from particular matters 
involving existing creditors or lenders.

    (a) Disqualification required. Absent an authorization pursuant to 
paragraph (d) of this section, an employee shall not participate in a 
particular matter involving specific parties if the employee is aware 
that any of the following have credit with or are indebted to an entity 
that is a party or represents a party to the matter:
    (1) The employee;
    (2) The employee's spouse, domestic partner, or dependent child;
    (3) A partnership in which the employee or the employee's spouse, 
domestic partner, or dependent child is a general partner;
    (4) A partnership or closely held corporation in which the employee 
or the employee's spouse, domestic partner, or dependent child 
individually or jointly owns or controls more than 10 percent of its 
equity;
    (5) A trust in which the employee or the employee's spouse, domestic 
partner, or dependent child has a vested legal or beneficial interest;

[[Page 1065]]

    (6) An investment club or similar informal investment arrangement 
between the employee or the employee's spouse, domestic partner, or 
dependent child, and others;
    (7) A qualified profit sharing, retirement, or similar plan in which 
the employee or the employee's spouse, domestic partner, or dependent 
child has an interest; or
    (8) An entity in which the employee or the employee's spouse, 
domestic partner, or dependent child individually or jointly holds more 
than a 25 percent equity interest.
    (b) Forms of credit and indebtedness exempted. The following forms 
of credit and indebtedness are exempted from the disqualification 
requirement in paragraph (a) of this section, as long as the person 
listed in paragraphs (a)(1) through (a)(8) of this section is not in an 
adversarial position (e.g., delinquent in payments; disputing the terms 
or conditions of the account; subject to debt collection measures like 
wage garnishment; involved in any disagreement that may cast doubt on 
the employee's ability to remain impartial) with the entity that 
extended the credit or to which the indebtedness is owed, and the credit 
or indebtedness was offered on terms and conditions no more favorable 
than those offered to the general public:
    (1) Revolving consumer credit or charge cards;
    (2) Overdraft protection on checking accounts and similar accounts;
    (3) Amortizing indebtedness on consumer goods (e.g., automobiles);
    (4) Automobile leases for primarily personal (consumer) use 
vehicles;
    (5) The provision of telephone, cable, gas, electricity, water, or 
other similar utility services provided on credit (i.e., the service is 
provided before payment is due such that consumers incur debt as they 
use the service and receive periodic bills for the services used);
    (6) Educational loans (e.g., student loans; loans taken out by a 
parent or guardian to pay for a child's education costs); and
    (7) Loans on residential homes (e.g., home mortgages; home equity 
lines of credit).
    (c) Credit or indebtedness of employee's spouse, domestic partner, 
dependent child, or other specified persons. An employee's 
disqualification under paragraph (a) of this section is not required if:
    (1) The credit or indebtedness is solely the responsibility of the 
person listed in paragraphs (a)(2) through (a)(8) of this section; and
    (2) The credit or the liability for repayment of the indebtedness is 
not dependent on, attributable to, or derived from the employee's 
income, assets, or activities.
    (d) Authorization to participate. The DAEO may authorize an employee 
to participate in a matter that would require disqualification under 
paragraph (a) of this section, using the authorization process set forth 
in 5 CFR 2635.502(d) of the OGE Standards. The DAEO will consult with 
senior management in the Division in which the employee works before 
issuing such an authorization.

[77 FR 25019, Apr. 27, 2012, as amended at 82 FR 35887, Aug. 2, 2017]



Sec.  9401.110  Prohibited recommendations.

    An employee shall not make recommendations or suggestions, directly 
or indirectly, concerning the acquisition or sale or other divestiture 
of a security in an entity supervised by the Bureau, or an entity that 
is a party or represents a party to a particular matter involving 
specific parties to which the employee is assigned.

[82 FR 35887, Aug. 2, 2017]



Sec.  9401.111  Restriction on participating in matters 
involving covered entities.

    (a) Disqualification required. Absent an authorization pursuant to 
paragraph (c) of this section, an employee shall not participate in a 
particular matter involving specific parties if a covered entity is a 
party or represents a party to the matter.
    (b) ``Covered entity'' defined. For purposes of this section, a 
``covered entity'' includes:
    (1) Any person for whom the employee is serving or seeking to serve, 
or has served within the last year, as officer, director, trustee, 
general partner, agent, attorney, consultant, contractor, or employee; 
or

[[Page 1066]]

    (2) Any person for whom the employee is aware the employee's spouse, 
domestic partner, fianc[eacute], child, parent, sibling, stepfather, 
stepmother, stepson, stepdaughter, stepbrother, stepsister, half-
brother, half-sister, or member of the employee's household is serving 
or seeking to serve as an officer, director, trustee, general partner, 
agent, attorney, consultant, contractor, or employee.
    (c) Waivers. The DAEO may authorize the employee to participate in a 
matter that would require disqualification under paragraph (a) of this 
section, using the authorization process set forth in 5 CFR 2635.502(d) 
of the OGE Standards. The DAEO will consult with senior management in 
the Division in which the employee works before issuing such an 
authorization.

[82 FR 35887, Aug. 2, 2017]



Sec.  9401.112  Prohibited purchase of assets.

    An employee, or an employee's spouse or minor child, shall not 
purchase, directly or indirectly, any real or personal property from an 
entity supervised by the Bureau, unless it is sold at public auction or 
by other means which assures that the selling price reflects the asset's 
fair market value.



Sec.  9401.113  Waivers.

    The DAEO may grant a written waiver from any provision of this part 
where the DAEO finds good cause to do so; provided, however, that the 
DAEO will not do so unless the DAEO finds that the waiver is not 
inconsistent with the OGE Standards or otherwise prohibited by law and 
that, under the particular circumstances, application of the provision 
being waived is not necessary in order to avoid a violation of an ethics 
rule. Each waiver must be in writing and supported by a statement of 
facts and findings and may impose appropriate conditions, such as 
requiring the employee to execute a written disqualification statement.

                       PARTS 9402	9499 [RESERVED]

[[Page 1067]]



          CHAPTER LXXXVI--NATIONAL CREDIT UNION ADMINISTRATION




  --------------------------------------------------------------------
Part                                                                Page
9600

[Reserved]

9601            Supplemental standards of ethical conduct 
                    for employees of the National Credit 
                    Union Administration....................        1069
9602-9699

 [Reserved]

[[Page 1069]]

                          PART 9600 [RESERVED]



PART 9601_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL CREDIT UNION ADMINISTRATION--Table of Contents



Sec.
9601.101 General.
9601.102 Definitions.
9601.103 Prohibited outside employment.
9601.104 Prior approval for outside employment.
9601.105 DAEO's responsibilities.

    Authority: 12 U.S.C. 1752a(d), 1766; 5 U.S.C. 7301; 5 U.S.C. App. 
(Ethics in Government Act of 1978); 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; 5 CFR 2635.105, 5 CFR 2635.403, 5 CFR 2635.502 and 5 CFR 
2635.803

    Source: 78 FR 22769, Apr. 17, 2013, unless otherwise noted.



Sec.  9601.101  General

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to employees of the National Credit Union Administration 
(NCUA), other than special government employees as defined in 5 CFR 
2635.102(l) and supplement the Standards of Ethical Conduct for 
Employees of the Executive Branch contained in 5 CFR part 2635 (Office 
of Government Ethics (OGE) Standards).
    (b) Other regulations, guidance and procedures. In addition to 5 CFR 
part 2635 and this part, NCUA employees are required to comply with 
implementing guidance and procedures issued by the NCUA in accordance 
with 5 CFR 2635.105(c). NCUA employees are also subject to other 
government-wide ethics regulations including, but not limited to: 
Regulations concerning financial disclosure contained in 5 CFR part 
2634, regulations concerning executive branch financial interests and 
conflicts contained in 5 CFR part 2640, and regulations concerning post-
employment restrictions contained in 5 CFR part 2641. Certain senior 
NCUA examiners are also subject to post-employment restrictions 
contained in NCUA's Regulation found at 12 CFR part 796. Employees 
should contact an NCUA ethics official if they have questions about any 
provision of this regulation or other ethics-related matters.



Sec.  9601.102  Definitions.

    The following definitions apply to this part:
    (a) Employment. (1) For purposes of this section, ``employment'' 
means any form of non-Federal employment, business relationship, or 
activity involving the provision of personal services by the employee, 
whether or not for compensation. It includes, but is not limited to, 
services as an officer, director, employee, agent, advisor, attorney, 
consultant, contractor, general partner, trustee, teacher, or speaker. 
It includes a writing when done under an arrangement with another person 
for production or publication of the written product.
    (2) The definition of employment does not include participation in 
the activities of a nonprofit charitable, religious, professional, 
social, fraternal, educational, recreational, public service or civic 
organization, unless:
    (i) The employee will receive compensation other than reimbursement 
of expenses; or
    (ii) The organization's activities are devoted substantially to 
matters relating to the employee's official duties as defined in 5 CFR 
2635.807(a)(2)(i)(B) through (E).

    Note to paragraph (a): There is a special approval requirement set 
out in both 18 U.S.C. 203(d) and 205(e), respectively, for certain 
representational activities otherwise covered by the conflict of 
interest restrictions on compensation and activities of employees in 
claims against and other matters affecting the Government. Thus, an 
employee who wishes to act as agent or attorney for, or otherwise 
represent his parents, spouse, child, or any person for whom, or any 
estate for which, he is serving as guardian, executor, administrator, 
trustee, or other personal fiduciary in such matters must obtain the 
approval required by law of the Government official responsible for the 
employee's appointment in addition to the regulatory approval of this 
section.

    (b) Credit union-related entities. (1) Credit union includes insured 
and non-insured credit unions as defined in Section 102(7) of the 
Federal Credit Union Act (the Act), 12 U.S.C. 1752(7).

[[Page 1070]]

    (2) Credit union service organization as defined in Sec.  741.222(a) 
of the NCUA Regulations, 12 CFR 741.222(a).
    (3) Credit union trade groups include credit union trade 
organizations whose membership is comprised of credit union, CUSO, state 
credit union regulators, state credit union organizations, and officials 
and employees of such organizations.
    (4) Other credit union-related entities may be defined pursuant to 
Agency Instruction.



Sec.  9601.103  Prohibited outside employment.

    No employee may engage in outside employment, with or without 
compensation, with any credit union, credit union trade group, credit 
union service organization, or other credit union-related entity, in any 
capacity.



Sec.  9601.104  Prior approval for outside employment.

    (a) General requirement. (1) Before engaging in any outside 
employment, with or without compensation, other than prohibited 
employment in Sec.  9601.103, an NCUA employee, other than a special 
government employee, must obtain written approval from the employee's 
supervisor and the concurrence of the Designated Agency Ethics Official 
(DAEO), except to the extent that the DAEO has issued an instruction 
pursuant to Sec.  9601.105 exempting an activity or class of activities 
from this requirement.
    (2) Any employee, other than a special government employee, who, 
before the effective date of this part or commencement of employment 
with NCUA, began engaging in outside employment must, within 30 calendar 
days of the effective date of this part or 30 days of commencement of 
employment with NCUA, either terminate such employment if it is in 
violation of Sec.  9601.103 or request written approval from his or her 
supervisor and the concurrence of the DAEO in accordance with this 
section. The employee may continue engaging in the outside employment 
while the request for approval is under review.
    (b) Procedure for requesting approval. (1) Employees shall request 
the approval required by paragraph (a) of this section by email or other 
form of written correspondence in advance of engaging in outside 
employment as defined in Sec.  9601.102. The employee requesting 
approval shall submit the request to his/her supervisor.
    (2) The request for approval to engage in outside employment shall 
set forth, at a minimum:
    (i) The name of the employer or organization;
    (ii) The nature of the activity or other work to be performed;
    (iii) The title of the position; and
    (iv) The estimated duration of the outside employment.
    (3) Upon a significant change in the nature or scope of the outside 
employment or in the employee's official position with the NCUA, the 
employee must, within 7 calendar days of the change, submit a revised 
request for approval.
    (c) Standard for approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635.

[78 FR 22769, Apr. 17, 2013, as amended at 79 FR 12657, Mar. 6, 2014]



Sec.  9601.105  DAEO's responsibilities.

    The NCUA DAEO may issue Instructions governing the submission of 
requests for approval of outside employment. The Instructions may exempt 
categories of employment from prior approval requirement of this section 
based on a determination that employment within those categories of 
employment would generally be approved and is not likely to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635. The DAEO may include in these Instructions examples of 
outside employment that are permissible or impermissible consistent with 
this part and 5 CFR part 2635, including examples of other credit union-
related entities.

                       PARTS 9602	9699 [RESERVED]

[[Page 1071]]



     CHAPTER XCVII--DEPARTMENT OF HOMELAND SECURITY HUMAN RESOURCES 
MANAGEMENT SYSTEM (DEPARTMENT OF HOMELAND SECURITY--OFFICE OF PERSONNEL 
                               MANAGEMENT)




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Part                                                                Page
9700

[Reserved]

9701            Department of Homeland Security human 
                    resources management system.............        1073
9702-9799

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[[Page 1073]]

                          PART 9700 [RESERVED]



PART 9701_DEPARTMENT OF HOMELAND SECURITY HUMAN RESOURCES MANAGEMENT SYSTEM--
Table of Contents



                      Subpart A_General Provisions

Sec.
9701.101 Purpose.
9701.102 Eligibility and coverage.
9701.103 Definitions.
9701.104 Scope of authority.
9701.105 Continuing collaboration.
9701.106 Relationship to other provisions.
9701.107 Program evaluation.

                        Subpart B_Classification

                                 General

9701.201 Purpose.
9701.202 Coverage.
9701.203 Waivers.
9701.204 Definitions.
9701.205 Bar on collective bargaining.

                        Classification Structure

9701.211 Occupational clusters.
9701.212 Bands.

                         Classification Process

9701.221 Classification requirements.
9701.222 Reconsideration of classification decisions.

                         Transitional Provisions

9701.231 Conversion of positions and employees to the DHS classification 
          system.
9701.232 Special transition rules for Federal Air Marshal Service.

                  Subpart C_Pay and Pay Administration

                                 General

9701.301 Purpose.
9701.302 Coverage.
9701.303 Waivers.
9701.304 Definitions.
9701.305 Bar on collective bargaining.

                         Overview of Pay System

9701.311 Major features.
9701.312 Maximum rates.
9701.313 Homeland Security Compensation Committee.
9701.314 DHS responsibilities.

                    Setting and Adjusting Rate Ranges

9701.321 Structure of bands.
9701.322 Setting and adjusting rate ranges.
9701.323 Eligibility for pay increase associated with a rate range 
          adjustment.
9701.324 Treatment of employees whose rate of basic pay does not fall 
          below the minimum rate of their band.
9701.325 Treatment of employees whose rate of basic pay falls below the 
          minimum rate of their band.

                  Locality and Special Rate Supplements

9701.331 General.
9701.332 Locality rate supplements.
9701.333 Special rate supplements.
9701.334 Setting and adjusting locality and special rate supplements.
9701.335 Eligibility for pay increase associated with a supplement 
          adjustment.
9701.336 Treatment of employees whose pay does not fall below the 
          minimum adjusted rate of their band.
9701.337 Treatment of employees whose pay falls below the minimum 
          adjusted rate of their band.

                          Performance-Based Pay

9701.341 General.
9701.342 Performance pay increases.
9701.343 Within-band reductions.
9701.344 Special within-band increases.
9701.345 Developmental pay adjustments.
9701.346 Pay progression for new supervisors.

                           Pay Administration

9701.351 Setting an employee's starting pay.
9701.352 Use of highest previous rate.
9701.353 Setting pay upon promotion.
9701.354 Setting pay upon demotion.
9701.355 Setting pay upon movement to a different occupational cluster.
9701.356 Pay retention.
9701.357 Miscellaneous.

                            Special Payments

9701.361 Special skills payments.
9701.362 Special assignment payments.
9701.363 Special staffing payments.

                         Transitional Provisions

9701.371 General.
9701.372 Creating initial pay ranges.
9701.373 Conversion of employees to the DHS pay system.
9701.374 Special transition rules for Federal Air Marshal Service.

                    Subpart D_Performance Management

9701.401 Purpose.
9701.402 Coverage.
9701.403 Waivers.
9701.404 Definitions.
9701.405 Performance management system requirements.
9701.406 Setting and communicating performance expectations.
9701.407 Monitoring performance and providing feedback.

[[Page 1074]]

9701.408 Developing performance and addressing poor performance.
9701.409 Rating and rewarding performance.
9701.410 DHS responsibilities.

                  Subpart E_Labor-Management Relations

9701.501 Purpose.
9701.502 Rule of construction.
9701.503 Waivers.
9701.504 Definitions.
9701.505 Coverage.
9701.506 Impact on existing agreements.
9701.507 Employee rights.
9701.508 Homeland Security Labor Relations Board.
9701.509 Powers and duties of the HSLRB.
9701.510 Powers and duties of the Federal Labor Relations Authority.
9701.511 Management rights.
9701.512 Conferring on procedures for the exercise of management rights.
9701.513 Exclusive recognition of labor organizations.
9701.514 Determination of appropriate units for labor organization 
          representation.
9701.515 Representation rights and duties.
9701.516 Allotments to representatives.
9701.517 Unfair labor practices.
9701.518 Duty to bargain, confer, and consult.
9701.519 Negotiation impasses.
9701.520 Standards of conduct for labor organizations.
9701.521 Grievance procedures.
9701.522 Exceptions to arbitration awards.
9701.523 Official time.
9701.524 Compilation and publication of data.
9701.525 Regulations of the HSLRB.
9701.526 Continuation of existing laws, recognitions, agreements, and 
          procedures.
9701.527 Savings provision.

                        Subpart F_Adverse Actions

                                 General

9701.601 Purpose.
9701.602 Waivers.
9701.603 Definitions.
9701.604 Coverage.
9701.605 Initial service period.

  Requirements for Furlough of 30 Days or Less, Suspension, Demotion, 
                      Reduction in Pay, or Removal

9701.606 Standard for action.
9701.607 Mandatory removal offenses.
9701.608 Procedures.
9701.609 Proposal notice.
9701.610 Opportunity to reply.
9701.611 Decision notice.
9701.612 Departmental record.

                            National Security

9701.613 Suspension and removal.

                            Savings Provision

9701.614 Savings provision.

                            Subpart G_Appeals

9701.701 Purpose.
9701.702 Waivers.
9701.703 Definitions.
9701.704 Coverage.
9701.705 Alternative dispute resolution.
9701.706 MSPB appellate procedures.
9701.707 Appeals of mandatory removal actions.
9701.708 Mandatory Removal Panel.
9701.709 Actions involving discrimination.
9701.710 Savings provision.

    Authority: 5 U.S.C. 9701.

    Source: 70 FR 5318, Feb. 1, 2005, unless otherwise noted.



                      Subpart A_General Provisions

    Editorial Note: At 73 FR 58435, Oct. 7, 2008, the application of 
subpart A to part 9701 was rescinded.



Sec.  9701.101  Purpose.

    (a) This part contains regulations governing the establishment of a 
new human resources management system within the Department of Homeland 
Security (DHS), as authorized by 5 U.S.C. 9701. As permitted by section 
9701, these regulations waive and replace various statutory provisions 
that would otherwise be applicable to affected DHS employees. These 
regulations are issued jointly by the Secretary of Homeland Security and 
the Director of the Office of Personnel Management (OPM).
    (b) The system established under this part is designed to be 
mission-centered, performance-focused, flexible, contemporary, and 
excellent; to generate respect and trust through employee involvement; 
to be based on the principles of merit and fairness embodied in the 
statutory merit system principles; and to comply with all other 
applicable provisions of law.



Sec.  9701.102  Eligibility and coverage.

    (a) All civilian employees of the Department are eligible for 
coverage under one or more subparts of this part except those covered by 
a provision of law outside the waivable chapters of title 5, U.S. Code, 
identified in Sec.  9701.104. For example, Transportation

[[Page 1075]]

Security Administration employees, employees appointed under the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act, Secret Service 
Uniformed Division members, Coast Guard Academy faculty members, and 
Coast Guard military members are not eligible for coverage under any 
classification or pay system established under subpart B or C of this 
part. Refer to subparts B through G of this part for specific 
information regarding the coverage of each subpart.
    (b)(1) Subpart A of this part becomes applicable to all eligible 
employees on March 3, 2005.
    (2) The Secretary or designee may, at his or her sole and exclusive 
discretion and after coordination with OPM, establish the effective date 
for applying subparts E, F, and G of this part to all eligible 
employees. Unless otherwise determined by the Secretary and the 
Director, subparts E, F, and G of this part will become applicable to 
all eligible employees no later than August 1, 2005.
    (3) With respect to subparts B, C, and D of this part, the Secretary 
or designee may, at his or her sole and exclusive discretion and after 
coordination with OPM, apply one or more of these subparts to a specific 
category or categories of eligible civilian employees at any time. With 
respect to any given category of civilian employees, the Secretary or 
designee may apply some of these subparts, but not others, and such 
coverage determinations may be made effective on different dates (e.g., 
in order to phase in coverage under a new classification, pay, and 
performance management system).
    (4) DHS will notify affected employees and labor organizations in 
advance of the application of one or more subparts of this part to them.
    (c) Until the Secretary or designee makes a determination under 
paragraph (b) of this section to apply the provisions of one or more 
subparts of this part to a particular category or categories of eligible 
DHS employees, those DHS employees will continue to be covered by the 
applicable Federal laws and regulations that would apply to them in the 
absence of this part. All personnel actions affecting DHS employees must 
be based on the Federal laws and regulations applicable to them on the 
effective date of the action.
    (d) Any new DHS classification, pay, or performance management 
system covering Senior Executive Service (SES) members must be 
consistent with the policies and procedures established by the 
Governmentwide SES pay-for-performance system authorized by 5 U.S.C. 
chapter 53, subchapter VIII, and applicable implementing regulations 
issued by OPM. If the Secretary determines that SES members employed by 
DHS should be covered by classification, pay, or performance management 
provisions that differ substantially from the Governmentwide SES pay-
for-performance system, the Secretary and the Director must issue joint 
regulations consistent with all of the requirements of 5 U.S.C. 9701.
    (e) At his or her sole and exclusive discretion, the Secretary or 
designee may, after coordination with OPM, rescind the application under 
paragraph (b) of this section of one or more subparts of this part to a 
particular category of employees and prescribe implementing directives 
for converting that category of employees to coverage under applicable 
title 5 provisions. DHS will notify affected employees and labor 
organizations in advance of a decision to rescind the application of one 
or more subparts of this part to them.
    (f) The Secretary or other authorized DHS official may exercise an 
independent legal authority to establish a parallel system that follows 
some or all of the requirements in this part for a category of employees 
who are not eligible for coverage under this part.



Sec.  9701.103  Definitions.

    In this part:
    Authorized agency official means the Secretary or an official who is 
authorized to act for the Secretary in the matter concerned.
    Coordination means the process by which DHS, after appropriate 
staff-level consultation, officially provides OPM with notice of a 
proposed action and intended effective date. If OPM concurs, or does not 
respond to that notice within 30 calendar days, DHS may proceed with the 
proposed action. However, if OPM indicates the matter

[[Page 1076]]

has Governmentwide implications or consequences, DHS will not proceed 
until the matter is resolved. The coordination process is intended to 
give due deference to the flexibilities afforded DHS by the Homeland 
Security Act and the regulations in this part, without compromising 
OPM's institutional responsibility, as codified in 5 U.S.C. chapter 11 
and Executive Order 13197 of January 18, 2001, to provide Governmentwide 
oversight in human resources management programs and practices.
    Department or DHS means the Department of Homeland Security.
    Director means the Director of the Office of Personnel Management.
    Employee means an employee within the meaning of that term in 5 
U.S.C. 2105.
    General Schedule or GS means the General Schedule classification and 
pay system established under chapter 51 and subchapter III of chapter 53 
of title 5, U.S. Code.
    Implementing directives means directives issued at the Departmental 
level by the Secretary or designee to carry out any policy or procedure 
established in accordance with this part. These directives may apply 
Departmentwide or to any part of the Department as determined by the 
Secretary at his or her sole and exclusive discretion.
    OPM means the Office of Personnel Management.
    Secretary means the Secretary of Homeland Security or, as 
authorized, the Deputy Secretary of Homeland Security.
    Secretary or designee means the Secretary or a DHS official 
authorized to act for the Secretary in the matter concerned who serves 
as--
    (1) The Undersecretary for Management; or
    (2) The Chief Human Capital Officer for DHS.



Sec.  9701.104  Scope of authority.

    Subject to the requirements and limitations in 5 U.S.C. 9701, the 
provisions in the following chapters of title 5, U.S. Code, and any 
related regulations, may be waived or modified in exercising the 
authority in 5 U.S.C. 9701:
    (a) Chapter 43, dealing with performance appraisal systems;
    (b) Chapter 51, dealing with General Schedule job classification;
    (c) Chapter 53, dealing with pay for General Schedule employees, pay 
and job grading for Federal Wage System employees, and pay for certain 
other employees;
    (d) Chapter 71, dealing with labor relations;
    (e) Chapter 75, dealing with adverse actions and certain other 
actions; and
    (f) Chapter 77, dealing with the appeal of adverse actions and 
certain other actions.



Sec.  9701.105  Continuing collaboration.

    (a) In accordance with 5 U.S.C. 9701(e)(1)(D), this section provides 
employee representatives with an opportunity to participate in the 
development of implementing directives. This process is not subject to 
the requirements established by subpart E of this part, including but 
not limited to Sec. Sec.  9701.512 (regarding conferring on procedures 
for the exercise of management rights), 9701.517(a)(5) (regarding 
enforcement of the duty to consult or negotiate), 9701.518 (regarding 
the duty to bargain, confer, and consult), or 9701.519 (regarding 
impasse procedures).
    (b)(1) For the purpose of this section, the term ``employee 
representatives'' includes representatives of labor organizations with 
exclusive recognition rights for units of DHS employees, as well as 
representatives of employees who are not within a unit for which a labor 
organization has exclusive recognition.
    (2) Consistent with 5 U.S.C. 9701(e)(2)(A), (B), and (D), DHS will 
determine the number of employee representatives to be engaged in the 
continuing collaboration process.
    (3) Each national labor organization with multiple collective 
bargaining units accorded exclusive recognition will determine how its 
units will be represented within the limitations imposed by DHS.
    (c)(1) Within timeframes specified by DHS, employee representatives 
will be provided with an opportunity to submit written comments and/or 
to discuss their views with DHS officials on proposed final draft 
implementing directives.

[[Page 1077]]

    (2) As the Department determines necessary, employee representatives 
will be provided with an opportunity to discuss their views with DHS 
officials and/or to submit written comments at initial identification of 
implementation issues and conceptual design and/or at review of draft 
recommendations or alternatives.
    (d) Employee representatives will be provided with access to 
information, including research, to make their participation in the 
continuing collaboration process productive.
    (e) Any written comments submitted by employee representatives 
regarding proposed final draft implementing directives will become part 
of the record and will be forwarded to the Secretary or designee for 
consideration in making a final decision.
    (f) Nothing in the continuing collaboration process affects the 
right of the Secretary to determine the content of implementing 
directives and to make them effective at any time.
    (g) In accordance with 5 U.S.C. 9701(e)(2), any procedures necessary 
to carry out this section will be established by the Secretary and the 
Director jointly as internal rules of Departmental procedure which will 
not be subject to review.



Sec.  9701.106  Relationship to other provisions.

    (a)(1) The provisions of title 5, U.S. Code, are waived or modified 
to the extent authorized by 5 U.S.C. 9701 to conform to the provisions 
of this part.
    (2) This part must be interpreted in a way that recognizes the 
critical mission of the Department. Each provision of this part must be 
construed to promote the swift, flexible, effective day-to-day 
accomplishment of this mission, as defined by the Secretary or designee. 
The interpretation of the regulations in this part by DHS and OPM must 
be accorded great deference.
    (b) For the purpose of applying other provisions of law or 
Governmentwide regulations that reference provisions under chapters 43, 
51, 53, 71, 75, and 77 of title 5, U.S. Code, the referenced provisions 
are not waived but are modified consistent with the corresponding 
regulations in this part, except as otherwise provided in this part 
(including paragraph (c) of this section) or in DHS implementing 
directives. Applications of this rule include, but are not limited to, 
the following:
    (1) If another provision of law or Governmentwide regulations 
requires coverage under one of the chapters modified or waived under 
this part (i.e., chapters 43, 51, 53, 71, 75, and 77 of title 5, U.S. 
Code), DHS employees are deemed to be covered by the applicable chapter 
notwithstanding coverage under a system established under this part. 
Selected examples of provisions that continue to apply to any DHS 
employees (notwithstanding coverage under subparts B through G of this 
part) include, but are not limited to, the following:
    (i) Foreign language awards for law enforcement officers under 5 
U.S.C. 4521-4523;
    (ii) Pay for firefighters under 5 U.S.C. 5545b;
    (iii) Differentials for duty involving physical hardship or hazard 
under 5 U.S.C. 5545(d);
    (iv) Recruitment, relocation, and retention payments under 5 U.S.C. 
5753-5754;
    (v) Physicians' comparability allowances under 5 U.S.C. 5948; and
    (vi) The higher cap on relocation bonuses for law enforcement 
officers established by section 407 of the Federal Employees Pay 
Comparability Act of 1990 (section 529 of Pub. L. 101-509).
    (2) In applying the back pay law in 5 U.S.C. 5596 to DHS employees 
covered by subpart G of this part (dealing with appeals), the reference 
in section 5596(b)(1)(A)(ii) to 5 U.S.C. 7701(g) (dealing with attorney 
fees) is considered to be a reference to a modified section 7701(g) that 
is consistent with Sec.  9701.706(h).
    (3) In applying the back pay law in 5 U.S.C. 5596 to DHS employees 
covered by subpart E of this part (dealing with labor relations), the 
reference in section 5596(b)(5) to section 7116 (dealing with unfair 
labor practices) is considered to be a reference to a modified section 
7116 that is consistent with Sec.  9701.517.
    (c) When a specified category of employees is covered by a 
classification

[[Page 1078]]

and pay system established under subparts B and C of this part, the 
following provisions do not apply:
    (1) Time-in-grade restrictions that apply to competitive service GS 
positions under 5 CFR part 300, subpart F;
    (2) Supervisory differentials under 5 U.S.C. 5755; and
    (3) Law enforcement officer special rates and geographic adjustments 
under sections 403 and 404 of the Federal Employees Pay Comparability 
Act of 1990 (section 529 of Pub. L. 101-509).
    (d) Nothing in this part waives, modifies or otherwise affects the 
employment discrimination laws that the Equal Employment Opportunity 
Commission (EEOC) enforces under 42 U.S.C. 2000e et seq., 29 U.S.C. 621 
et seq., 29 U.S.C. 791 et seq., and 29 U.S.C. 206(d). Employees and 
applicants for employment in DHS will continue to be covered by EEOC's 
Federal sector regulations found at 29 CFR part 1614.



Sec.  9701.107  Program evaluation.

    (a) DHS will establish procedures for evaluating the regulations in 
this part and their implementation. DHS will provide designated employee 
representatives with an opportunity to be briefed and a specified 
timeframe to provide comments on the design and results of program 
evaluations.
    (b) Involvement of employee representatives under this section will 
occur at the following stages:
    (1) Identification of the scope, objectives, and methodology to be 
used in program evaluation; and
    (2) Review of draft findings and recommendations.
    (c) Involvement in the evaluation process does not waive the rights 
of any party under applicable law or regulations.



                        Subpart B_Classification

    Editorial Note: At 73 FR 58435, Oct. 7, 2008, the application of 
subpart B to part 9701 was rescinded.

                                 General



Sec.  9701.201  Purpose.

    (a) This subpart contains regulations establishing a classification 
structure and rules for covered DHS employees and positions to replace 
the classification structure and rules in 5 U.S.C. chapter 51 and the 
job grading system in 5 U.S.C. chapter 53, subchapter IV, in accordance 
with the merit principle of equal pay for work of equal value.
    (b) Any classification system prescribed under this subpart must be 
established in conjunction with the pay system described in subpart C of 
this part.



Sec.  9701.202  Coverage.

    (a) This subpart applies to eligible DHS employees and positions 
listed in paragraph (b) of this section, subject to a determination by 
the Secretary or designee under Sec.  9701.102(b).
    (b) The following employees and positions are eligible for coverage 
under this subpart:
    (1) Employees and positions that would otherwise be covered by the 
General Schedule classification system established under 5 U.S.C. 
chapter 51;
    (2) Employees and positions that would otherwise be covered by a 
prevailing rate system established under 5 U.S.C. chapter 53, subchapter 
IV;
    (3) Employees in senior-level (SL) and scientific or professional 
(ST) positions who would otherwise be covered by 5 U.S.C. 5376; and
    (4) Members of the Senior Executive Service (SES) who would 
otherwise be covered by 5 U.S.C. chapter 53, subchapter VIII, subject to 
Sec.  9701.102(d).



Sec.  9701.203  Waivers.

    (a) When a specified category of employees is covered by a 
classification system established under this subpart, the provisions of 
5 U.S.C. chapter 51 and 5 U.S.C. 5346, and related regulations, are 
waived with respect to that category of employees, except as provided in 
paragraph (b) of this section, Sec.  9701.106, and Sec.  9701.222(d) 
(with respect to OPM's authority under 5 U.S.C. 5112(b) and 5346(c) to 
act on requests for review of classification decisions).
    (b) Section 5108 of title 5, U.S. Code, dealing with the 
classification of positions above GS-15, is not waived.



Sec.  9701.204  Definitions.

    In this subpart:
    Band means a work level or pay range within an occupational cluster.

[[Page 1079]]

    Basic pay means an employee's rate of pay before any deductions and 
exclusive of additional pay of any kind, except as expressly provided by 
law or regulation. For the specific purposes prescribed in Sec. Sec.  
9701.332(c) and 9701.333, respectively, basic pay includes locality and 
special rate supplements.
    Classification, also referred to as job evaluation, means the 
process of analyzing and assigning a job or position to an occupational 
series, cluster, and band for pay and other related purposes.
    Competencies means the measurable or observable knowledge, skills, 
abilities, behaviors, and other characteristics required by a position.
    Occupational cluster means a grouping of one or more associated or 
related occupations or positions. An occupational cluster may include 
one or more occupational series.
    Occupational series means the number OPM or DHS assigns to a group 
or family of similar positions for identification purposes (for example: 
0110, Economist Series; 1410, Librarian Series).
    Position or Job means the duties, responsibilities, and related 
competency requirements that are assigned to an employee whom the 
Secretary or designee approves for coverage under Sec.  9701.202(a).



Sec.  9701.205  Bar on collective bargaining.

    As provided in the definition of conditions of employment in Sec.  
9701.504, any classification system established under this subpart is 
not subject to collective bargaining. This bar on collective bargaining 
applies to all aspects of the classification system, including but not 
limited to coverage determinations, the design of the classification 
structure, and classification methods, criteria, and administrative 
procedures and arrangements.

                        Classification Structure



Sec.  9701.211  Occupational clusters.

    For the purpose of classifying positions, DHS may, after 
coordination with OPM, establish occupational clusters based on factors 
such as mission or function; nature of work; qualifications or 
competencies; career or pay progression patterns; relevant labor-market 
features; and other characteristics of those occupations or positions. 
DHS must document in implementing directives the criteria and rationale 
for grouping occupations or positions into occupational clusters.



Sec.  9701.212  Bands.

    (a) For purposes of identifying relative levels of work and 
corresponding pay ranges, DHS may, after coordination with OPM, 
establish one or more bands within each occupational cluster.
    (b) Each occupational cluster may include, but is not limited to, 
the following bands:
    (1) Entry/Developmental--work that involves gaining the competencies 
needed to perform successfully in a Full Performance band through 
appropriate formal training and/or on-the-job experience.
    (2) Full Performance--work that involves the successful completion 
of any required entry-level training and/or developmental activities 
necessary to independently perform the full range of non-supervisory 
duties of a position in an occupational cluster.
    (3) Senior Expert--work that involves an extraordinary level of 
specialized knowledge or expertise upon which DHS relies for the 
accomplishment of critical mission goals and objectives; reserved for a 
limited number of non-supervisory employees.
    (4) Supervisory--work that may involve hiring or selecting 
employees, assigning work, managing performance, recognizing and 
rewarding employees, and other associated duties.
    (c) DHS must document in implementing directives the definitions for 
each band which specify the type and range of difficulty and 
responsibility, qualifications, competencies, or other characteristics 
of the work encompassed by the band.
    (d) DHS must, after coordination with OPM, establish qualification 
standards and requirements for each occupational cluster, occupational 
series, and/or band. DHS may use the qualification standards established 
by OPM or, after coordination with OPM, may establish different 
qualification standards. This paragraph does not

[[Page 1080]]

waive or modify any DHS authority to establish qualification standards 
or requirements under 5 U.S.C. chapters 31 and 33 and OPM implementing 
regulations.

                         Classification Process



Sec.  9701.221  Classification requirements.

    (a) DHS must develop a methodology for describing and documenting 
the duties, qualifications, and other requirements of categories of 
jobs, and DHS must make such descriptions and documentation available to 
affected employees.
    (b) An authorized agency official must--
    (1) Assign occupational series to jobs consistent with occupational 
series definitions established by OPM under 5 U.S.C. 5105 and 5346 or by 
DHS, after coordination with OPM; and
    (2) Apply the criteria and definitions required by Sec.  9701.211 
and Sec.  9701.212 to assign jobs to an appropriate occupational cluster 
and band.
    (c) DHS must establish procedures for classifying jobs and may make 
such inquiries or investigations of the duties, responsibilities, and 
qualification requirements of jobs as it considers necessary for the 
purpose of this section.
    (d) Classification decisions become effective on the date designated 
by the authorized agency official who makes the decision.
    (e) DHS must establish a plan to periodically review the accuracy of 
classification decisions.



Sec.  9701.222  Reconsideration of classification decisions.

    (a) An individual employee may request that DHS or OPM reconsider 
the pay system, occupational cluster, occupational series, or band 
assigned to his or her current official position of record at any time.
    (b) DHS will, after coordination with OPM, establish implementing 
directives for reviewing requests for reconsideration, including 
nonreviewable issues, rights of representation, and the effective date 
of any corrective actions. OPM will, after consulting with DHS, 
establish separate policies and procedures for reviewing reconsideration 
requests.
    (c) An employee may request OPM to review a DHS determination made 
under paragraph (a) of this section. If an employee does not request an 
OPM reconsideration decision, DHS's classification determination is 
final and not subject to further review or appeal.
    (d) OPM's final determination on a request made under this section 
is not subject to further review or appeal.

                         Transitional Provisions



Sec.  9701.231  Conversion of positions and employees to the DHS 
classification system.

    (a) This section describes the transitional provisions that apply 
when DHS positions and employees are converted to a classification 
system established under this subpart. Affected positions and employees 
may convert from the GS system, a prevailing rate system, the SL/ST 
system, or the SES system, as provided in Sec.  9701.202. For the 
purpose of this section, the terms ``convert,'' ``converted,'' 
``converting,'' and ``conversion'' refer to positions and employees that 
become covered by the classification system as a result of a coverage 
determination made under Sec.  9701.102(b) and exclude employees who are 
reassigned or transferred from a noncovered position to a position 
already covered by the DHS system.
    (b) DHS will issue implementing directives prescribing policies and 
procedures for converting the GS or prevailing rate grade of a position 
to a band and for converting SL/ST and SES positions to a band upon 
initial implementation of the DHS classification system. Such procedures 
must include provisions for converting an employee who is retaining a 
grade under 5 U.S.C. chapter 53, subchapter VI, immediately prior to 
conversion. As provided in Sec.  9701.373, DHS must convert employees to 
the system without a reduction in their rate of pay (including basic pay 
and any applicable locality payment under 5 U.S.C. 5304, special rate 
under 5 U.S.C. 5305, locality rate supplement under Sec.  9701.332, or 
special rate supplement under Sec.  9701.333).

[[Page 1081]]



Sec.  9701.232  Special transition rules for Federal Air Marshal Service.

    Notwithstanding any other provision in this subpart, if DHS 
transfers Federal Air Marshal Service positions from the Transportation 
Security Administration (TSA) to another organization within DHS, DHS 
may cover those positions under a classification system that is parallel 
to the classification system that was applicable to the Federal Air 
Marshal Service within TSA. DHS may, after coordination with OPM, modify 
that system. DHS will issue implementing directives on converting 
Federal Air Marshal Service employees to any new classification system 
that may subsequently be established under this subpart, consistent with 
the conversion rules in Sec.  9701.231.



                  Subpart C_Pay and Pay Administration

    Editorial Note: At 73 FR 58435, Oct. 7, 2008, the application of 
subpart C to part 9701 was rescinded.

                                 General



Sec.  9701.301  Purpose.

    (a) This subpart contains regulations establishing pay structures 
and pay administration rules for covered DHS employees to replace the 
pay structures and pay administration rules established under 5 U.S.C. 
chapter 53, as authorized by 5 U.S.C. 9701. These regulations are 
designed to provide DHS with the flexibility to allocate available funds 
strategically in support of DHS mission priorities and objectives. 
Various features that link pay to employees' performance ratings are 
designed to promote a high-performance culture within DHS.
    (b) Any pay system prescribed under this subpart must be established 
in conjunction with the classification system described in subpart B of 
this part.
    (c) The pay system established under this subpart, working in 
conjunction with the performance management system established under 
subpart D of this part, is designed to incorporate the following 
features:
    (1) Adherence to merit principles set forth in 5 U.S.C. 2301;
    (2) A fair, credible, and transparent employee performance appraisal 
system;
    (3) A link between elements of the pay system established in this 
subpart, the employee performance appraisal system, and the Department's 
strategic plan;
    (4) Employee involvement in the design and implementation of the 
system (as specified in Sec.  9701.105);
    (5) Adequate training and retraining for supervisors, managers, and 
employees in the implementation and operation of the pay system 
established in this subpart;
    (6) Periodic performance feedback and dialogue among supervisors, 
managers, and employees throughout the appraisal period, and setting 
timetables for review;
    (7) Effective safeguards so that the management of the system is 
fair and equitable and based on employee performance; and
    (8) A means for ensuring that adequate resources are allocated for 
the design, implementation, and administration of the performance 
management system that supports the pay system established under this 
subpart.



Sec.  9701.302  Coverage.

    (a) This subpart applies to eligible DHS employees in the categories 
listed in paragraph (b) of this section, subject to a determination by 
the Secretary or designee under Sec.  9701.102(b).
    (b) The following employees are eligible for coverage under this 
subpart:
    (1) Employees who would otherwise be covered by the General Schedule 
pay system established under 5 U.S.C. chapter 53, subchapter III;
    (2) Employees who would otherwise be covered by a prevailing rate 
system established under 5 U.S.C. chapter 53, subchapter IV;
    (3) Employees in senior-level (SL) and scientific or professional 
(ST) positions who would otherwise be covered by 5 U.S.C. 5376; and
    (4) Members of the Senior Executive Service (SES) who would 
otherwise be covered by 5 U.S.C. chapter 53, subchapter VIII, subject to 
Sec.  9701.102(d).

[[Page 1082]]



Sec.  9701.303  Waivers.

    (a) When a specified category of employees is covered by the pay 
system established under this subpart, the provisions of 5 U.S.C. 
chapter 53, and related regulations, are waived with respect to that 
category of employees, except as provided in Sec.  9701.106 and 
paragraphs (b) through (f) of this section.
    (b) The following provisions of 5 U.S.C. chapter 53 are not waived:
    (1) Section 5307, dealing with the aggregate limitation on pay;
    (2) Sections 5311 through 5318, dealing with Executive Schedule 
positions;
    (3) Section 5371, insofar as it authorizes OPM to apply the 
provisions of 38 U.S.C. chapter 74 to DHS employees in health care 
positions covered by section 5371 in lieu of any DHS pay system 
established under this subpart or the following provisions of title 5, 
U.S. Code: Chapters 51, 53, and 61, and subchapter V of chapter 55. The 
reference to ``chapter 51'' in section 5371 is deemed to include a 
classification system established under subpart B of this part; and
    (4) Section 5377, dealing with the critical pay authority.
    (c) Section 5373 is modified. The limit on rates of basic pay, 
including any applicable locality payment or supplement, for DHS 
employees who are not covered by this subpart and whose pay is set by 
administrative action (e.g., Coast Guard Academy faculty) is increased 
to the rate for level III of the Executive Schedule.
    (d) Section 5379 is modified. DHS may, after coordination with OPM, 
establish and administer a student loan repayment program for DHS 
employees, except that DHS may not make loan payments for any noncareer 
appointees to the SES (as defined in 5 U.S.C. 3132(a)(7)) or for any 
employee occupying a position that is excepted from the competitive 
service because of its confidential, policy-determining, policy-making, 
or policy-advocating character. Notwithstanding Sec.  9701.302(a), any 
DHS employee otherwise covered by section 5379 is eligible for coverage 
under the provisions established under this paragraph, subject to a 
determination by the Secretary or designee under Sec.  9701.102(b).
    (e) In approving the coverage of employees who would otherwise be 
covered by a prevailing rate system established under 5 U.S.C. chapter 
53, subchapter IV, DHS may limit the waiver so that affected employees 
remain entitled to environmental or other differentials established 
under 5 U.S.C. 5343(c)(4) and night shift differentials established 
under 5 U.S.C. 5343(f) if such employees are grouped in separate 
occupational clusters (established under subpart B of this part) that 
are limited to employees who would otherwise be covered by a prevailing 
rate system.
    (f) Employees in SL/ST positions and SES members who are covered by 
a basic pay system established under this subpart are considered to be 
paid under 5 U.S.C. 5376 and 5382, respectively, for the purpose of 
applying 5 U.S.C. 5307(d).



Sec.  9701.304  Definitions.

    In this part:
    48 contiguous States means the States of the United States, 
excluding Alaska and Hawaii, but including the District of Columbia.
    Band means a work level or pay range within an occupational cluster.
    Band rate range means the range of rates of basic pay (excluding any 
locality or special rate supplements) applicable to employees in a 
particular band, as described in Sec.  9701.321. Each band rate range is 
defined by a minimum and maximum rate.
    Basic pay means an employee's rate of pay before any deductions and 
exclusive of additional pay of any kind, except as expressly provided by 
law or regulation. For the specific purposes prescribed in Sec. Sec.  
9701.332(c) and 9701.333, respectively, basic pay includes locality and 
special rate supplements.
    Competencies means the measurable or observable knowledge, skills, 
abilities, behaviors, and other characteristics required by a position.
    Day means a calendar day.
    Demotion means a reduction to a lower band within the same 
occupational cluster or a reduction to a lower band in a different 
occupational cluster under implementing directives issued by DHS 
pursuant to Sec.  9701.355.

[[Page 1083]]

    Locality rate supplement means a geographic-based addition to basic 
pay, as described in Sec.  9701.332.
    Modal rating means the rating of record that occurs most frequently 
in a particular pay pool.
    Occupational cluster means a grouping of one or more associated or 
related occupations or positions. An occupational cluster may include 
one or more occupational series.
    Promotion means an increase to a higher band within the same 
occupational cluster or an increase to a higher band in a different 
occupational cluster under implementing directives issued by DHS 
pursuant to Sec.  9701.355.
    Rating of record means a performance appraisal prepared--
    (1) At the end of an appraisal period covering an employee's 
performance of assigned duties against performance expectations (as 
defined in Sec.  9701.404) over the applicable period; or
    (2) To support a pay determination, including one granted in 
accordance with subpart C of this part, a within-grade increase granted 
under 5 CFR 531.404, or a pay determination granted under other 
applicable rules.
    SES means the Senior Executive Service established under 5 U.S.C. 
chapter 31, subchapter II.
    SL/ST refers to an employee serving in a senior-level position paid 
under 5 U.S.C. 5376. The term ``SL'' identifies a senior-level employee 
covered by 5 U.S.C. 3324 and 5108. The term ``ST'' identifies an 
employee who is appointed under the special authority in 5 U.S.C. 3325 
to a scientific or professional position established under 5 U.S.C. 
3104.
    Special rate supplement means an addition to basic pay for a 
particular category of employees to address staffing problems, as 
described in Sec.  9701.333. A special rate supplement is paid in place 
of any lesser locality rate supplement that would otherwise apply.
    Unacceptable performance means the failure to meet one or more 
performance expectations, as described in Sec.  9701.406.



Sec.  9701.305  Bar on collective bargaining.

    As provided in the definition of conditions of employment in Sec.  
9701.504, any pay program established under authority of this subpart is 
not subject to collective bargaining. This bar on collective bargaining 
applies to all aspects of the pay program, including but not limited to 
coverage decisions, the design of pay structures, the setting and 
adjustment of pay levels, pay administration rules and policies, and 
administrative procedures and arrangements.

                         Overview of Pay System



Sec.  9701.311  Major features.

    Through the issuance of implementing directives, DHS will establish 
a pay system that governs the setting and adjusting of covered 
employees' rates of pay. The DHS pay system will include the following 
features:
    (a) A structure of rate ranges linked to various bands for each 
occupational cluster, in alignment with the classification structure 
described in subpart B of this part;
    (b) Policies regarding the setting and adjusting of basic pay rate 
ranges based on mission requirements, labor market conditions, and other 
factors, as described in Sec. Sec.  9701.321 and 9701.322;
    (c) Policies regarding the setting and adjusting of supplements to 
basic pay based on local labor market conditions and other factors, as 
described in Sec. Sec.  9701.331 through 9701.334;
    (d) Policies regarding employees' eligibility for pay increases 
based on adjustments in rate ranges and supplements, as described in 
Sec. Sec.  9701.323 through 9701.325 and 9701.335 through 9701.337;
    (e) Policies regarding performance-based pay adjustments, as 
described in Sec. Sec.  9701.341 through 9701.346;
    (f) Policies on basic pay administration, including movement between 
occupational clusters, as described in Sec. Sec.  9701.351 through 
9701.356;
    (g) Policies regarding special payments that are not basic pay, as 
described in Sec. Sec.  9701.361 through 9701.363; and
    (h) Linkages to employees' performance ratings of records, as 
described in subpart D of this part.



Sec.  9701.312  Maximum rates.

    (a) DHS may not pay any employee an annual rate of basic pay in 
excess of

[[Page 1084]]

the rate for level III of the Executive Schedule, except as provided in 
paragraph (b) of this section.
    (b) DHS may establish the maximum annual rate of basic pay for 
members of the SES at the rate for level II of the Executive Schedule if 
DHS obtains the certification specified in 5 U.S.C. 5307(d).



Sec.  9701.313  Homeland Security Compensation Committee.

    (a) DHS will establish a Homeland Security Compensation Committee to 
provide options and/or recommendations for consideration by the 
Secretary or designee on strategic compensation matters such as 
Departmental compensation policies and principles, the annual allocation 
of funds between market and performance pay adjustments, and the annual 
adjustment of rate ranges and locality and special rate supplements. The 
Compensation Committee will consider factors such as turnover, 
recruitment, and local labor market conditions in providing options and 
recommendations for consideration by the Secretary. The Secretary's or 
designee's determination with regard to those options and/or 
recommendations is final and not subject to further review.
    (b) The Compensation Committee will be chaired by the DHS 
Undersecretary for Management. The Compensation Committee has 14 
members, including 4 officials of labor organizations granted national 
consultation rights (NCR) in accordance with Sec.  9701.518(d)(2). An 
OPM official will serve as an ex officio member of the Compensation 
Committee. DHS will provide technical staff to support the Compensation 
Committee.
    (c) DHS will establish procedures governing the membership and 
operation of the Compensation Committee.
    (d) An individual will be selected by the Chair to facilitate 
Compensation Committee meetings. The facilitator will be selected from a 
list of nominees developed jointly by representatives of the Department 
and NCR labor organizations, the latter acting as a single party, 
according to procedures and time limits established by implementing 
directives. Nominees must be known for their integrity, impartiality, 
and expertise in facilitation and compensation. If the Department and 
the labor organizations are unable to reach agreement on a joint list of 
nominees, they will enlist the services of the Federal Mediation and 
Conciliation Service (FMCS) to assist them. If the parties are unable to 
reach agreement with FMCS assistance, each party will prepare a list of 
up to three nominees and provide those separate lists to FMCS; FMCS may 
add up to three additional nominees. From that combined list of 
nominees, the Department and the labor organizations, the latter acting 
as a single party, will alternately strike names from the list until 
five names remain; those five nominees will be submitted to the Chair 
for consideration. The Chair may request that the parties develop an 
additional list of nominees. If the representatives of the Department's 
NCR labor organizations, acting as a single party, do not participate in 
developing the list of nominees in accordance with this section, the 
Chair will select the facilitator.
    (e) After considering the views of all Compensation Committee 
members, the Chair prepares and provides options and/or recommendations 
to the Secretary or designee. Members may present their views on the 
final recommendations in writing as part of the final recommendation 
package. The Secretary or designee will make the final decision and 
notify the Compensation Committee. This process is not subject to the 
requirements established by Sec. Sec.  9701.512 (regarding conferring on 
procedures for the exercise of management rights), 9701.517(a)(5) 
(regarding enforcement of the duty to consult or negotiate), 9701.518 
(regarding the duty to bargain, confer, and consult), or 9701.519 
(regarding impasse procedures).
    (f) The Secretary retains the right to make determinations regarding 
the annual allocation of funds between market and performance pay 
adjustments, the annual adjustment of rate ranges and locality and 
special rate supplements, or any other matter recommended by the 
Compensation Committee, and to make such determinations effective at any 
time.

[[Page 1085]]



Sec.  9701.314  DHS responsibilities.

    DHS responsibilities in implementing this subpart include the 
following:
    (a) Providing OPM with information regarding the implementation of 
the programs authorized under this subpart at OPM's request;
    (b) Participating in any interagency pay coordination council or 
group established by OPM to ensure that DHS pay policies and plans are 
coordinated with other agencies; and
    (c) Fulfilling all other responsibilities prescribed in this 
subpart.

                    Setting and Adjusting Rate Ranges



Sec.  9701.321  Structure of bands.

    (a) DHS may, after coordination with OPM, establish ranges of basic 
pay for bands, with minimum and maximum rates set and adjusted as 
provided in Sec.  9701.322. Rates must be expressed as annual rates.
    (b) For each band within an occupational cluster, DHS will establish 
a common rate range that applies in all locations.



Sec.  9701.322  Setting and adjusting rate ranges.

    (a) Within its sole and exclusive discretion, DHS may, after 
coordination with OPM, set and adjust the rate ranges established under 
Sec.  9701.321 on an annual basis. In determining the rate ranges, DHS 
and OPM may consider mission requirements, labor market conditions, 
availability of funds, pay adjustments received by employees of other 
Federal agencies, and any other relevant factors.
    (b) DHS may, after coordination with OPM, determine the effective 
date of newly set or adjusted band rate ranges. Unless DHS determines 
that a different effective date is needed for operational reasons, these 
adjustments will become effective on or about the date of the annual 
General Schedule pay adjustment authorized by 5 U.S.C. 5303.
    (c) DHS may establish different rate ranges and provide different 
rate range adjustments for different bands.
    (d) DHS may adjust the minimum and maximum rates of a band by 
different percentages.



Sec.  9701.323  Eligibility for pay increase associated with 
a rate range adjustment.

    (a) When a band rate range is adjusted under Sec.  9701.322, 
employees covered by that band are eligible for an individual pay 
increase. An employee who meets or exceeds performance expectations 
(i.e., has a rating of record above the unacceptable performance level 
for the most recently completed appraisal period) must receive an 
increase in basic pay equal to the percentage value of any increase in 
the minimum rate of the employee's band resulting from a rate range 
adjustment under Sec.  9701.322. The pay increase takes effect at the 
same time as the corresponding rate range adjustment, except as provided 
in Sec. Sec.  9701.324 and 9701.325. For an employee receiving a 
retained rate, the amount of the increase under this paragraph is 
determined under Sec.  9701.356.
    (b) If an employee does not have a rating of record for the most 
recently completed appraisal period, he or she must be treated in the 
same manner as an employee who meets or exceeds performance expectations 
and is entitled to receive an increase based on the rate range 
adjustment, as provided in paragraph (a) of this section.
    (c) An employee whose rating of record is unacceptable is prohibited 
from receiving a pay increase as a result of a rate range adjustment, 
except as provided by Sec. Sec.  9701.324 and 9701.325. Because the 
employee's pay remains unchanged, failure to receive a pay increase is 
not considered an adverse action under subpart F of this part.



Sec.  9701.324  Treatment of employees whose rate of basic pay does not 
fall below the minimum rate of their band.

    An employee who does not receive a pay increase under Sec.  9701.323 
because of an unacceptable rating of record and whose rate of basic pay 
does not fall below the minimum rate of his or her band as a result of 
that rating will receive such an increase if he or she demonstrates 
performance that meets or exceeds performance expectations, as reflected 
by a new rating of record issued under Sec.  9701.409(b). Such an 
increase will be made effective on the

[[Page 1086]]

first day of the first pay period beginning on or after the date the new 
rating of record is issued.



Sec.  9701.325  Treatment of employees whose rate of basic pay falls 
below the minimum rate of their band.

    (a) In the case of an employee who does not receive a pay increase 
under Sec.  9701.323 because of an unacceptable rating of record and 
whose rate of basic pay falls below the minimum rate of his or her band 
as a result of that rating, DHS must--
    (1) If the employee demonstrates performance that meets or exceeds 
performance expectations within 90 days after the date of the rate range 
adjustment, issue a new rating of record under Sec.  9701.409(b) and 
adjust the employee's pay prospectively by making the increase effective 
on the first day of the first pay period beginning on or after the date 
the new rating of record is issued; or
    (2) Initiate action within 90 days after the date of the rate range 
adjustment to demote or remove the employee in accordance with the 
adverse action procedures established in subpart F of this part.
    (b) If DHS fails to initiate a removal or demotion action under 
paragraph (a)(2) of this section within 90 days after the date of a rate 
range adjustment, the employee becomes entitled to the minimum rate of 
his or her band rate range on the first day of the first pay period 
beginning on or after the 90th day following the date of the rate range 
adjustment.

                  Locality and Special Rate Supplements



Sec.  9701.331  General.

    The basic pay ranges established under Sec. Sec.  9701.321 through 
9701.323 may be supplemented in appropriate circumstances by locality or 
special rate supplements, as described in Sec. Sec.  9701.332 through 
9701.335. These supplements are expressed as a percentage of basic pay 
and are set and adjusted as described in Sec.  9701.334. As authorized 
by Sec.  9701.356, DHS implementing directives will determine the extent 
to which Sec. Sec.  9701.331 through 9701.337 apply to employees 
receiving a retained rate.



Sec.  9701.332  Locality rate supplements.

    (a) For each band rate range, DHS may, after coordination with OPM, 
establish locality rate supplements that apply in specified locality pay 
areas. Locality rate supplements apply to employees whose official duty 
station is located in the given area. DHS may provide different locality 
rate supplements for different occupational clusters or for different 
bands within the same occupational cluster in the same locality pay 
area.
    (b) For the purpose of establishing and modifying locality pay 
areas, 5 U.S.C. 5304 is not waived. A DHS decision to use the locality 
pay area boundaries established under 5 U.S.C. 5304 does not require 
separate DHS regulations. DHS may, after coordination with OPM and in 
accordance with the public notice and comment provisions of 5 U.S.C. 
553, publish Departmental regulations (6 CFR Chapter I) in the Federal 
Register that establish and adjust different locality pay areas within 
the 48 contiguous States or establish and adjust new locality pay areas 
outside the 48 contiguous States. These regulations are subject to the 
continuing collaboration process described in Sec.  9701.105. As 
provided by 5 U.S.C. 5304(f)(2)(B), judicial review of any DHS 
regulation regarding the establishment or adjustment of locality pay 
areas is limited to whether or not the regulation was promulgated in 
accordance with 5 U.S.C. 553.
    (c) Locality rate supplements are considered basic pay for only the 
following purposes:
    (1) Retirement under 5 U.S.C. chapter 83 or 84;
    (2) Life insurance under 5 U.S.C. chapter 87;
    (3) Premium pay under 5 U.S.C. chapter 55, subchapter V, or similar 
payments under other legal authority;
    (4) Severance pay under 5 U.S.C. 5595;
    (5) Application of the maximum rate limitation set forth in Sec.  
9701.312;
    (6) Determining the rate of basic pay upon conversion to the DHS pay 
system established under this subpart, consistent with Sec.  
9701.373(b);
    (7) Other payments and adjustments authorized under this subpart as 
specified by DHS implementing directives;

[[Page 1087]]

    (8) Other payments and adjustments under other statutory or 
regulatory authority that are basic pay for the purpose of locality-
based comparability payments under 5 U.S.C. 5304; and
    (9) Any provisions for which DHS locality rate supplements must be 
treated as basic pay by law.



Sec.  9701.333  Special rate supplements.

    DHS will, after coordination with OPM, establish special rate 
supplements that provide higher pay levels for subcategories of 
employees within an occupational cluster if DHS determines that such 
supplements are warranted by current or anticipated recruitment and/or 
retention needs. In exercising this authority, DHS will issue necessary 
implementing directives. Any special rate supplement must be treated as 
basic pay for the same purposes as locality rate supplements, as 
described in Sec.  9701.332(c), and for the purpose of computing cost-
of-living allowances and post differentials in nonforeign areas under 5 
U.S.C. 5941.



Sec.  9701.334  Setting and adjusting locality and special rate supplements.

    (a) Within its sole and exclusive discretion, DHS may, after 
coordination with OPM, set and adjust locality and special rate 
supplements. In determining the amounts of the supplements, DHS and OPM 
may consider mission requirements, labor market conditions, availability 
of funds, pay adjustments received by employees of other Federal 
agencies, and any other relevant factors.
    (b) DHS may, after coordination with OPM, determine the effective 
date of newly set or adjusted locality and special rate supplements. 
Established supplements will be reviewed for possible adjustment on an 
annual basis in conjunction with rate range adjustments under Sec.  
9701.322.



Sec.  9701.335  Eligibility for pay increase associated with 
a supplement adjustment.

    (a) When a locality or special rate supplement is adjusted under 
Sec.  9701.334, an employee to whom the supplement applies is entitled 
to the pay increase resulting from that adjustment if the employee meets 
or exceeds performance expectations (i.e., has a rating of record above 
the unacceptable performance level for the most recently completed 
appraisal period). This includes an increase resulting from the initial 
establishment and setting of a special rate supplement. The pay increase 
takes effect at the same time as the applicable supplement is set or 
adjusted, except as provided in Sec. Sec.  9701.336 and 9701.337.
    (b) If an employee does not have a rating of record for the most 
recently completed appraisal period, he or she must be treated in the 
same manner as an employee who meets or exceeds performance expectations 
and is entitled to any pay increase associated with a supplement 
adjustment, as provided in paragraph (a) of this section.
    (c) An employee who has an unacceptable rating of record is 
prohibited from receiving a pay increase as a result of an increase in 
an applicable locality or special rate supplement, except as provided by 
Sec. Sec.  9701.336 and 9701.337. Because the employee's pay remains 
unchanged, failure to receive a pay increase is not considered an 
adverse action under subpart F of this part.



Sec.  9701.336  Treatment of employees whose pay does not fall 
below the minimum adjusted rate of their band.

    An employee who does not receive a pay increase under Sec.  9701.335 
because of an unacceptable rating of record and whose rate of basic pay 
(including a locality or special rate supplement) does not fall below 
the minimum adjusted rate of his or her band as a result of that rating 
will receive such an increase if he or she demonstrates performance that 
meets or exceeds performance expectations, as reflected by a new rating 
of record issued under Sec.  9701.409(b). Such an increase will be made 
effective on the first day of the first pay period beginning on or after 
the date the new rating of record is issued.



Sec.  9701.337  Treatment of employees whose rate of pay falls 
below the minimum adjusted rate of their band.

    (a) In the case of an employee who does not receive a pay increase 
under

[[Page 1088]]

Sec.  9701.335 because of an unacceptable rating of record and whose 
rate of basic pay (including a locality or special rate supplement) 
falls below the minimum adjusted rate of his or her band as a result of 
that rating, DHS must--
    (1) If the employee demonstrates performance that meets or exceeds 
performance expectations within 90 days after the date of the locality 
or special rate supplement adjustment, issue a new rating of record 
under Sec.  9701.409(b) and adjust the employee's pay prospectively by 
making the increase effective on the first day of the first pay period 
beginning on or after the date the new rating of record is issued; or
    (2) Initiate action within 90 days after the date of the locality or 
special rate supplement adjustment to demote or remove the employee in 
accordance with the adverse action procedures established in subpart F 
of this part.
    (b) If DHS fails to initiate a removal or demotion action under 
paragraph (a)(2) of this section within 90 days after the date of a 
locality or special rate supplement adjustment, the employee becomes 
entitled to the minimum adjusted rate of his or her band rate range on 
the first day of the first pay period beginning on or after the 90th day 
following the date of the locality or special rate supplement 
adjustment.

                          Performance-Based Pay



Sec.  9701.341  General.

    Sections 9701.342 through 9701.346 describe various types of 
performance-based pay adjustments that are part of the pay system 
established under this subpart. Generally, these within-band pay 
increases are directly linked to an employee's rating of record (as 
assigned under the performance management system described in subpart D 
of this part). These provisions are designed to provide DHS with the 
flexibility to allocate available funds based on performance as a means 
of fostering a high-performance culture that supports mission 
accomplishment. While performance measures primarily focus on an 
employee's contributions (as an individual or as part of a team) in 
accomplishing work assignments and achieving mission results, 
performance also may be reflected in the acquisition and demonstration 
of required competencies.



Sec.  9701.342  Performance pay increases.

    (a) Overview. (1) The DHS pay system provides employees in a Full 
Performance or higher band with increases in basic pay based on 
individual performance ratings of record as assigned under a performance 
management system established under subpart D of this part. The DHS pay 
system uses pay pool controls to allocate pay increases based on 
performance points that are directly linked to the employee's rating of 
record, as described in this section. Performance pay increases are a 
function of the amount of money in the performance pay pool, the 
relative point value placed on ratings, and the distribution of ratings 
within that performance pay pool.
    (2) The rating of record used as the basis for a performance pay 
increase is the one assigned for the most recently completed appraisal 
period (subject to the requirements of subpart D of this part), except 
that if the supervisor or other rating official determines that an 
employee's current performance is inconsistent with that rating, the 
supervisor or other rating official may prepare a more current rating of 
record, consistent with Sec.  9701.409(b). If an employee does not have 
a rating of record, DHS will use the modal rating received by other 
employees covered by the same pay pool during the most recent rating 
cycle for the purpose of determining the employee's performance pay 
increase.
    (b) Performance pay pools. (1) DHS will establish pay pools for 
performance pay increases.
    (2) Each pay pool covers a defined group of DHS employees, as 
determined by DHS.
    (3) An authorized agency official(s) may determine the distribution 
of funds among pay pools and may adjust those amounts based on overall 
levels of organizational performance or contribution to the Department's 
mission.
    (4) In allocating the monies to be budgeted for performance pay 
increases, the Secretary or designee must take into account the average 
value of within-grade and quality step increases

[[Page 1089]]

under the General Schedule, as well as amounts that otherwise would have 
been spent on promotions among positions placed in the same band.
    (c) Performance point values. (1) DHS will establish point values 
that correspond to the performance rating levels established under 
subpart D of this part, so that a point value is attached to each rating 
level. For example, in a four-level rating program, the point value 
pattern could be 4-2-1-0, where 4 points are assigned to the highest 
(outstanding) rating and 0 points to an unacceptable rating. Performance 
point values will determine performance pay increases.
    (2) DHS will establish a point value pattern for each pay pool. 
Different pay pools may have different point value patterns.
    (3) DHS must assign zero performance points to an unacceptable 
rating of record.
    (d) Performance payout. (1) DHS will determine the value of a 
performance point, expressed as a percentage of an employee's rate of 
basic pay (exclusive of locality or special rate supplements under 
Sec. Sec.  9701.332 and 9701.333) or as a fixed dollar amount.
    (2) To determine an individual employee's performance payout, DHS 
will multiply the point value determined under paragraph (d)(1) of this 
section by the number of performance points assigned to the rating.
    (3) To the extent that the adjustment does not cause the employee's 
rate of basic pay to exceed the maximum rate of the employee's band rate 
range, DHS will pay the performance payout as an adjustment in the 
employee's annual rate of basic pay. Any excess amount may be granted as 
a lump-sum payment, which may not be considered basic pay for any 
purpose.
    (4) DHS may, after coordination with OPM, determine the effective 
date of adjustments in basic pay made under paragraph (d)(3) of this 
section.
    (5) For an employee receiving a retained rate under Sec.  9701.356, 
DHS will issue implementing directives to provide for granting a lump-
sum performance payout that may not exceed the amount that may be 
received by an employee in the same pay pool with the same rating of 
record whose rate of pay is at the maximum rate of the same band.
    (e) Proration of performance payouts. DHS will issue implementing 
directives regarding the proration of performance payouts for employees 
who, during the period between performance pay adjustments, are--
    (1) Hired or promoted;
    (2) In a leave-without-pay status (except as provided in paragraphs 
(f) and (g) of this section); or
    (3) In other circumstances where proration is considered 
appropriate.
    (f) Adjustments for employees returning after performing honorable 
service in the uniformed services. DHS will issue implementing 
directives regarding how it sets the rate of basic pay prospectively for 
an employee who leaves a DHS position to perform service in the 
uniformed services (as defined in 38 U.S.C. 4303 and 5 CFR 353.102) and 
returns through the exercise of a reemployment right provided by law, 
Executive order, or regulation under which accrual of service for 
seniority-related benefits is protected (e.g., 38 U.S.C. 4316). DHS will 
credit the employee with intervening rate range adjustments under Sec.  
9701.323(a), as well as developmental pay adjustments under Sec.  
9701.345 (as determined by DHS in accordance with its implementing 
directives), and performance pay adjustments under this section based on 
the employee's last DHS rating of record. For employees who have no such 
rating of record, DHS will use the modal rating received by other 
employees covered by the same pay pool during the most recent rating 
cycle. An employee returning from qualifying service in the uniformed 
services will receive the full amount of the performance pay increase 
associated with his or her rating of record.
    (g) Adjustments for employees returning to duty after being in 
workers' compensation status. DHS will issue implementing directives 
regarding how it sets the rate of basic pay prospectively for an 
employee who returns to duty after a period of receiving injury 
compensation under 5 U.S.C. chapter 81, subchapter I (in a leave-
without-pay status or as a separated employee). DHS will credit the 
employee with intervening rate range adjustments

[[Page 1090]]

under Sec.  9701.323(a), as well as developmental pay adjustments under 
Sec.  9701.345 (as determined by DHS in accordance with its implementing 
directives), and performance pay adjustments under this section based on 
the employee's last DHS rating of record. For employees who have no such 
rating of record, DHS will use the modal rating received by other 
employees covered by the same pay pool during the most recent rating 
cycle. An employee returning to duty after receiving injury compensation 
will receive the full amount of the performance pay increase associated 
with his or her rating of record.



Sec.  9701.343  Within-band reductions.

    Subject to the adverse action procedures set forth in subpart F of 
this part, DHS may reduce an employee's rate of basic pay within a band 
for unacceptable performance or conduct. A reduction under this section 
may not be more than 10 percent or cause an employee's rate of basic pay 
to fall below the minimum rate of the employee's band rate range. Such a 
reduction may be made effective at any time.



Sec.  9701.344  Special within-band increases.

    DHS may issue implementing directives regarding special within-band 
basic pay increases for employees within a Full Performance or higher 
band established under Sec.  9701.212 who possess exceptional skills in 
critical areas or who make exceptional contributions to mission 
accomplishment or in other circumstances determined by DHS. Increases 
under this section are in addition to any performance pay increases made 
under Sec.  9701.342 and may be made effective at any time. Special 
within-band increases may not be based on length of service.



Sec.  9701.345  Developmental pay adjustments.

    DHS will issue implementing directives regarding pay adjustments 
within the Entry/Developmental band. These directives may require 
employees to meet certain standardized assessment or certification 
points as part of a formal training/developmental program. In 
administering Entry/Developmental band pay progression plans, DHS may 
link pay progression to the demonstration of required knowledge, skills, 
and abilities (KSAs)/competencies. DHS may set standard timeframes for 
progression through an Entry/Developmental band while allowing an 
employee to progress at a slower or faster rate based on his or her 
performance, demonstration of required competencies, and/or other 
factors.



Sec.  9701.346  Pay progression for new supervisors.

    DHS will issue implementing directives requiring an employee newly 
appointed to or selected for a supervisory position to meet certain 
assessment or certification points as part of a formal training/
developmental program. In administering performance pay increases for 
these employees under Sec.  9701.342, DHS may take into account the 
employee's success in completing a formal training/developmental 
program, as well as his or her performance.

                           Pay Administration



Sec.  9701.351  Setting an employee's starting pay.

    DHS will, after coordination with OPM, issue implementing directives 
regarding the starting rate of pay for an employee, including--
    (a) An individual who is newly appointed or reappointed to the 
Federal service;
    (b) An employee transferring to DHS from another Federal agency; and
    (c) A DHS employee who moves from a noncovered position to a 
position already covered by this subpart.



Sec.  9701.352  Use of highest previous rate.

    DHS will issue implementing directives regarding the discretionary 
use of an individual's highest previous rate of basic pay received as a 
Federal employee or as an employee of a Coast Guard nonappropriated fund 
instrumentality (NAFI) in setting pay upon reemployment, transfer, 
reassignment, promotion, demotion, placement in a different occupational 
cluster, or change in type of appointment. For this purpose, basic pay 
may include a locality-based payment or supplement under circumstances 
approved by DHS.

[[Page 1091]]

If an employee in a Coast Guard NAFI position is converted to an 
appropriated fund position under the pay system established under this 
subpart, DHS must use the existing NAFI rate to set pay upon conversion.



Sec.  9701.353  Setting pay upon promotion.

    (a) Except as otherwise provided in this section, upon an employee's 
promotion, DHS must provide an increase in the employee's rate of basic 
pay equal to at least 8 percent. The rate of basic pay after promotion 
may not be less than the minimum rate of the higher band.
    (b) DHS will issue implementing directives providing for an increase 
other than the amount specified in paragraph (a) of this section in the 
case of--
    (1) An employee promoted from an Entry/Developmental band to a Full 
Performance band (consistent with the pay progression plan established 
for the Entry/Developmental band);
    (2) An employee who was demoted and is then repromoted back to the 
higher band; or
    (3) Employees in other circumstances specified by DHS implementing 
directives.
    (c) An employee receiving a retained rate (i.e., a rate above the 
maximum of the band) before promotion is entitled to a rate of basic pay 
after promotion that is at least 8 percent higher than the maximum rate 
of the employee's current band (except in circumstances specified by DHS 
implementing directives). The rate of basic pay after promotion may not 
be less than the minimum rate of the employee's new band rate range or 
the employee's existing retained rate of basic pay. If the maximum rate 
of the employee's new band rate range is less than the employee's 
existing rate of basic pay, the employee will continue to be entitled to 
the existing rate as a retained rate.
    (d) DHS may determine the circumstances under which and the extent 
to which any locality or special rate supplements are treated as basic 
pay in applying the promotion increase rules in this section.



Sec.  9701.354  Setting pay upon demotion.

    DHS will issue implementing directives regarding how to set an 
employee's pay when he or she is demoted. The directives must 
distinguish between demotions under adverse action procedures (as 
defined in subpart F of this part) and other demotions (e.g., due to 
expiration of a temporary promotion or canceling of a promotion during a 
new supervisor's probationary period). A reduction in basic pay upon 
demotion under adverse action procedures may not exceed 10 percent 
unless a larger reduction is needed to place the employee at the maximum 
rate of the lower band.



Sec.  9701.355  Setting pay upon movement to a different occupational cluster.

    DHS will issue implementing directives regarding how to set an 
employee's pay when he or she moves voluntarily or involuntarily to a 
position in a different occupational cluster, including rules for 
determining whether such a movement is to a higher or lower band for the 
purpose of setting pay upon promotion or demotion under Sec. Sec.  
9701.353 and 9701.354, respectively.



Sec.  9701.356  Pay retention.

    (a) Subject to the requirements of this section, DHS will, after 
coordination with OPM, issue implementing directives regarding the 
application of pay retention. Pay retention prevents a reduction in 
basic pay that would otherwise occur by preserving the former rate of 
basic pay within the employee's new band or by establishing a retained 
rate that exceeds the maximum rate of the new band.
    (b) Pay retention must be based on the employee's rate of basic pay 
in effect immediately before the action that would otherwise reduce the 
employee's rate. A retained rate must be compared to the range of rates 
of basic pay applicable to the employee's position.
    (c) In applying Sec.  9701.323 (regarding pay increases provided at 
the time of a rate range adjustment under Sec.  9701.322), any increase 
in the rate of basic pay for an employee receiving a retained rate is 
equal to one-half of the percentage value of any increase in the minimum 
rate of the employee's band.

[[Page 1092]]



Sec.  9701.357  Miscellaneous.

    (a) Except in the case of an employee who does not receive a pay 
increase under Sec. Sec.  9701.323 or 9701.335 because of an 
unacceptable rating of record, an employee's rate of basic pay may not 
be less than the minimum rate of the employee's band (or the adjusted 
minimum rate of that band).
    (b) Except as provided in Sec.  9701.356, an employee's rate of 
basic pay may not exceed the maximum rate of the employee's band rate 
range.
    (c) DHS must follow the rules for establishing pay periods and 
computing rates of pay in 5 U.S.C. 5504 and 5505, as applicable. For 
employees covered by 5 U.S.C. 5504, annual rates of pay must be 
converted to hourly rates of pay in computing payments received by 
covered employees.
    (d) DHS will issue implementing directives regarding the movement of 
employees to or from a band with a rate range that is increased by a 
special rate supplement.
    (e) For the purpose of applying the reduction-in-force provisions of 
5 CFR part 351, DHS must establish representative rates for all band 
rate ranges.
    (f) If a DHS employee moves from the pay system established under 
this subpart to a GS position within DHS having a higher level of duties 
and responsibilities, DHS may issue implementing directives that provide 
for a special increase prior to the employee's movement in recognition 
of the fact that the employee will not be eligible for a promotion 
increase under the GS system.

                            Special Payments



Sec.  9701.361  Special skills payments.

    DHS will issue implementing directives regarding additional payments 
for specializations for which the incumbent is trained and ready to 
perform at all times. DHS may determine the amount of the payments and 
the conditions for eligibility, including any performance or service 
agreement requirements. Payments may be made at the same time as basic 
pay or in periodic lump-sum payments. Special skills payments are not 
basic pay for any purpose and may be terminated or reduced at any time 
without triggering pay retention or adverse action procedures.



Sec.  9701.362  Special assignment payments.

    DHS will issue implementing directives regarding additional payments 
for employees serving on special assignments in positions placing 
significantly greater demands on the employee than other assignments 
within the employee's band. DHS may determine the amount of the payments 
and the conditions for eligibility, including any performance or service 
agreement requirements. Payments may be made at the same time as basic 
pay or in periodic lump-sum payments. Special assignment payments are 
not basic pay for any purpose and may be terminated or reduced at any 
time without triggering pay retention provisions or adverse action 
procedures.



Sec.  9701.363  Special staffing payments.

    DHS will issue implementing directives regarding additional payments 
for employees serving in positions for which DHS is experiencing or 
anticipates significant recruitment and/or retention problems. DHS may 
determine the amount of the payments and the conditions for eligibility, 
including any performance or service agreement requirements. Payments 
may be made at the same time as basic pay or in periodic lump-sum 
payments. Special staffing payments are not basic pay for any purpose 
and may be terminated or reduced at any time without triggering pay 
retention or adverse action procedures.

                         Transitional Provisions



Sec.  9701.371  General.

    (a) Sections 9701.371 through 9701.374 describe the transitional 
provisions that apply when DHS employees are converted to a pay system 
established under this subpart. An affected employee may convert from 
the GS system, a prevailing rate system, the SL/ST system, or the SES 
system, as provided in Sec.  9701.302. For the purpose of this section 
and Sec. Sec.  9701.372 through 9701.374, the terms ``convert,'' 
``converted,'' ``converting,'' and ``conversion'' refer to employees who 
become

[[Page 1093]]

covered by the pay system without a change in position (as a result of a 
coverage determination made under Sec.  9701.102(b)) and exclude 
employees who are reassigned or transferred from a noncovered position 
to a position already covered by the DHS system.
    (b) DHS will issue implementing directives prescribing the policies 
and procedures necessary to implement these transitional provisions.



Sec.  9701.372  Creating initial pay ranges.

    (a) DHS must, after coordination with OPM, set the initial band rate 
ranges for the DHS pay system established under this subpart. The 
initial ranges will link to the ranges that apply to converted employees 
in their previously applicable pay system (taking into account any 
applicable special rates and locality payments or supplements).
    (b) For employees who are law enforcement officers as defined in 5 
U.S.C. 5541(3) and who were covered by the GS system immediately before 
conversion, the initial ranges must provide rates of basic pay that 
equal or exceed the rates of basic pay these officers received under the 
GS system (taking into account any applicable special rates and locality 
payments or supplements).



Sec.  9701.373  Conversion of employees to the DHS pay system.

    (a) When a pay system is established under this subpart and applied 
to a category of employees, DHS must convert employees to the system 
without a reduction in their rate of pay (including basic pay and any 
applicable locality payment under 5 U.S.C. 5304, special rate under 5 
U.S.C. 5305, locality rate supplement under Sec.  9701.332, or special 
rate supplement under Sec.  9701.333).
    (b) When an employee receiving a special rate under 5 U.S.C. 5305 
before conversion is converted to an equal rate of pay under the DHS pay 
system that consists of a basic rate and a locality or special rate 
supplement, the conversion will not be considered as resulting in a 
reduction in basic pay for the purpose of applying subpart F of this 
part.
    (c) If another personnel action (e.g., promotion, geographic 
movement) takes effect on the same day as the effective date of an 
employee's conversion to the new pay system, DHS must process the other 
action under the rules pertaining to the employee's former system before 
processing the conversion action.
    (d) An employee on a temporary promotion at the time of conversion 
must be returned to his or her official position of record prior to 
processing the conversion. If the employee is temporarily promoted 
immediately after the conversion, pay must be set under the rules for 
promotion increases under the DHS system.
    (e) The Secretary has discretion to make one-time pay adjustments 
for GS and prevailing rate employees when they are converted to the DHS 
pay system. DHS will issue implementing directives governing any such 
pay adjustment, including rules governing employee eligibility, pay 
computations, and the timing of any such pay adjustment.
    (f) The Secretary has discretion to convert entry/developmental 
employees in noncompetitive career ladder paths to the pay progression 
plan established for the Entry/Developmental band to which the employee 
is assigned under the DHS pay system. DHS will issue implementing 
directives governing any such conversion, including rules governing 
employee eligibility, pay computations, and the timing of any such 
conversion. As provided in paragraph (a) of this section, DHS must 
convert employees without a reduction in their rate of pay.



Sec.  9701.374  Special transition rules for Federal Air Marshal Service.

    Notwithstanding any other provision in this subpart, if DHS 
transfers Federal Air Marshal Service positions from the Transportation 
Security Administration (TSA) to another organization within DHS, DHS 
may cover those positions under a pay system that is parallel to the pay 
system that was applicable to the Federal Air Marshal Service within 
TSA. DHS may, after coordination with OPM, modify that system. DHS will 
issue implementing directives on converting Federal Air Marshal Service 
employees to

[[Page 1094]]

any new pay system that may subsequently be established under this 
subpart, consistent with the conversion rules in Sec.  9701.373.



                    Subpart D_Performance Management

    Editorial Note: At 73 FR 58435, Oct. 7, 2008, the application of 
subpart D to part 9701 was rescinded.



Sec.  9701.401  Purpose.

    (a) This subpart provides for the establishment in the Department of 
Homeland Security of at least one performance management system as 
authorized by 5 U.S.C. chapter 97.
    (b) The performance management system established under this 
subpart, working in conjunction with the pay system established under 
subpart C of this part, is designed to promote and sustain a high-
performance culture by incorporating the following features:
    (1) Adherence to merit principles set forth in 5 U.S.C. 2301;
    (2) A fair, credible, and transparent employee performance appraisal 
system;
    (3) A link between elements of the pay system established in subpart 
C of this part, the employee performance appraisal system, and the 
Department's strategic plan;
    (4) Employee involvement in the design and implementation of the 
system (as provided in Sec.  9701.105);
    (5) Adequate training and retraining for supervisors, managers, and 
employees in the implementation and operation of the performance 
management system;
    (6) Periodic performance feedback and dialogue among supervisors, 
managers, and employees throughout the appraisal period, with specific 
timetables for review;
    (7) Effective safeguards so that the management of the system is 
fair and equitable and based on employee performance; and
    (8) A means for ensuring that adequate resources are allocated for 
the design, implementation, and administration of the performance 
management system that supports the pay system established under subpart 
C of this part.



Sec.  9701.402  Coverage.

    (a) This subpart applies to eligible DHS employees in the categories 
listed in paragraph (b) of this section, subject to a determination by 
the Secretary or designee under Sec.  9701.102(b), except as provided in 
paragraph (c) of this section.
    (b) The following employees are eligible for coverage under this 
subpart:
    (1) Employees who would otherwise be covered by 5 U.S.C. chapter 43; 
and
    (2) Employees who were excluded from chapter 43 by OPM under 5 CFR 
430.202(d) prior to the date of coverage of this subpart, as determined 
under Sec.  9701.102(b).
    (c) This subpart does not apply to employees who are not expected to 
be employed longer than a minimum period (as defined in Sec.  9701.404) 
during a single 12-month period.



Sec.  9701.403  Waivers.

    When a specified category of employees is covered by the performance 
management system(s) established under this subpart, 5 U.S.C. chapter 43 
is waived with respect to that category of employees.



Sec.  9701.404  Definitions.

    In this subpart--
    Appraisal means the review and evaluation of an employee's 
performance.
    Appraisal period means the period of time established under a 
performance management system for reviewing employee performance.
    Competencies means the measurable or observable knowledge, skills, 
abilities, behaviors, and other characteristics required by a position.
    Contribution means a work product, service, output, or result 
provided or produced by an employee that supports the Departmental or 
organizational mission, goals, or objectives.
    Minimum period means the period of time established by DHS during 
which an employee must perform before receiving a rating of record.
    Performance means accomplishment of work assignments or 
responsibilities.
    Performance expectations means that which an employee is required to 
do, as described in Sec.  9701.406, and may include observable or 
verifiable descriptions of

[[Page 1095]]

quality, quantity, timeliness, and cost effectiveness.
    Performance management means applying the integrated processes of 
setting and communicating performance expectations, monitoring 
performance and providing feedback, developing performance and 
addressing poor performance, and rating and rewarding performance in 
support of the organization's goals and objectives.
    Performance management system means the policies and requirements 
established under this subpart, as supplemented by DHS implementing 
directives, for setting and communicating employee performance 
expectations, monitoring performance and providing feedback, developing 
performance and addressing poor performance, and rating and rewarding 
performance.
    Rating of record means a performance appraisal prepared--
    (1) At the end of an appraisal period covering an employee's 
performance of assigned duties against performance expectations over the 
applicable period; or
    (2) To support a pay determination, including one granted in 
accordance with subpart C of this part, a within-grade increase granted 
under 5 CFR 531.404, or a pay determination granted under other 
applicable rules.
    Unacceptable performance means the failure to meet one or more 
performance expectations.



Sec.  9701.405  Performance management system requirements.

    (a) DHS will issue implementing directives that establish one or 
more performance management systems for DHS employees, subject to the 
requirements set forth in this subpart.
    (b) Each DHS performance management system must--
    (1) Specify the employees covered by the system(s);
    (2) Provide for the periodic appraisal of the performance of each 
employee, generally once a year, based on performance expectations.
    (3) Specify the minimum period during which an employee must perform 
before receiving a rating of record;
    (4) Hold supervisors and managers accountable for effectively 
managing the performance of employees under their supervision as set 
forth in paragraph (c) of this section;
    (5) Include procedures for setting and communicating performance 
expectations, monitoring performance and providing feedback, and 
developing, rating, and rewarding performance; and
    (6) Specify the criteria and procedures to address the performance 
of employees who are detailed or transferred and for employees in other 
special circumstances.
    (c) In fulfilling the requirements of paragraph (b) of this section, 
supervisors and managers are responsible for--
    (1) Clearly communicating performance expectations and holding 
employees responsible for accomplishing them;
    (2) Making meaningful distinctions among employees based on 
performance;
    (3) Fostering and rewarding excellent performance; and
    (4) Addressing poor performance.



Sec.  9701.406  Setting and communicating performance expectations.

    (a) Performance expectations must align with and support the DHS 
mission and its strategic goals, organizational program and policy 
objectives, annual performance plans, and other measures of performance. 
Such expectations include those general performance expectations that 
apply to all employees, such as standard operating procedures, 
handbooks, or other operating instructions and requirements associated 
with the employee's job, unit, or function.
    (b) Supervisors and managers must communicate performance 
expectations, including those that may affect an employee's retention in 
the job. Performance expectations need not be in writing, but must be 
communicated to the employee prior to holding the employee accountable 
for them. However, notwithstanding this requirement, employees are 
always accountable for demonstrating appropriate standards of conduct, 
behavior, and professionalism, such as civility and respect for others.
    (c) Performance expectations may take the form of--

[[Page 1096]]

    (1) Goals or objectives that set general or specific performance 
targets at the individual, team, and/or organizational level;
    (2) Organizational, occupational, or other work requirements, such 
as standard operating procedures, operating instructions, administrative 
manuals, internal rules and directives, and/or other instructions that 
are generally applicable and available to the employee;
    (3) A particular work assignment, including expectations regarding 
the quality, quantity, accuracy, timeliness, and/or other expected 
characteristics of the completed assignment;
    (4) Competencies an employee is expected to demonstrate on the job, 
and/or the contributions an employee is expected to make; or
    (5) Any other means, as long as it is reasonable to assume that the 
employee will understand the performance that is expected.
    (d) Supervisors must involve employees, insofar as practicable, in 
the development of their performance expectations. However, final 
decisions regarding performance expectations are within the sole and 
exclusive discretion of management.



Sec.  9701.407  Monitoring performance and providing feedback.

    In applying the requirements of the performance management system 
and its implementing directives and policies, supervisors must--
    (a) Monitor the performance of their employees and the organization; 
and
    (b) Provide timely periodic feedback to employees on their actual 
performance with respect to their performance expectations, including 
one or more interim performance reviews during each appraisal period.



Sec.  9701.408  Developing performance and addressing poor performance.

    (a) Subject to budgetary and other organizational constraints, a 
supervisor must--
    (1) Provide employees with the proper tools and technology to do the 
job; and
    (2) Develop employees to enhance their ability to perform.
    (b) If during the appraisal period a supervisor determines that an 
employee's performance is unacceptable, the supervisor must--
    (1) Consider the range of options available to address the 
performance deficiency, which include but are not limited to remedial 
training, an improvement period, a reassignment, an oral warning, a 
letter of counseling, a written reprimand, and/or an adverse action (as 
defined in subpart F of this part); and
    (2) Take appropriate action to address the deficiency, taking into 
account the circumstances, including the nature and gravity of the 
unacceptable performance and its consequences.
    (c) As specified in subpart G of this part, employees may appeal 
adverse actions based on unacceptable performance.



Sec.  9701.409  Rating and rewarding performance.

    (a)(1) Except as provided in paragraphs (a)(2) and (3) of this 
section, each DHS performance management system must establish a single 
summary rating level of unacceptable performance, a summary rating level 
of fully successful performance (or equivalent), and at least one 
summary rating level above fully successful performance.
    (2) For employees in an Entry/Developmental band, the DHS 
performance management system(s) may establish two summary rating 
levels, i.e., an unacceptable rating level and a rating level of fully 
successful (or equivalent).
    (3) At his or her sole and exclusive discretion, the Secretary or 
designee may under extraordinary circumstances establish a performance 
management system with two summary rating levels, i.e., an unacceptable 
level and a higher rating level, for employees not in an Entry/
Developmental band.
    (b) A supervisor or other rating official must prepare and issue a 
rating of record after the completion of the appraisal period. An 
additional rating of record may be issued to reflect a substantial 
change in the employee's performance when appropriate. A rating of 
record will be used as a basis for determining--

[[Page 1097]]

    (1) An increase in basic pay under Sec.  9701.324;
    (2) A locality or special rate supplement increase under Sec.  
9701.336;
    (3) A performance pay increase determination under Sec.  
9701.342(a);
    (4) A within-grade increase determination under 5 CFR 531.404, prior 
to conversion to the pay system established under subpart C of this 
part;
    (5) A pay determination under any other applicable pay rules;
    (6) Awards under any legal authority, including 5 U.S.C. chapter 45, 
5 CFR part 451, and a Departmental or organizational awards program;
    (7) Eligibility for promotion; or
    (8) Such other action that DHS considers appropriate, as specified 
in the implementing directives.
    (c) A rating of record must assess an employee's performance with 
respect to his or her performance expectations and/or relative 
contributions and is considered final when issued to the employee with 
all appropriate reviews and signatures.
    (d) DHS may not impose a forced distribution or quota on any rating 
level or levels.
    (e) A rating of record issued under this subpart is an official 
rating of record for the purpose of any provision of title 5, Code of 
Federal Regulations, for which an official rating of record is required.
    (f) DHS may not lower the rating of record of an employee on an 
approved absence from work, including the absence of a disabled veteran 
to seek medical treatment, as provided in Executive Order 5396.
    (g) A rating of record may be grieved by a non-bargaining unit 
employee (or a bargaining unit employee when no negotiated procedure 
exists) through an administrative grievance procedure established by 
DHS. A bargaining unit employee may grieve a rating of record through a 
negotiated grievance procedure, as provided in subpart E of this part. 
An arbitrator hearing a grievance is subject to the standards of review 
set forth in Sec.  9701.521(g)(2). Except as otherwise provided by law, 
an arbitrator may not conduct an independent evaluation of the 
employee's performance or otherwise substitute his or her judgment for 
that of the supervisor.
    (h) A supervisor or other rating official may prepare an additional 
performance appraisal for the purposes specified in the applicable 
performance management system (e.g., transfers and details) at any time 
after the completion of the minimum period. Such an appraisal is not a 
rating of record.
    (i) DHS implementing directives will establish policies and 
procedures for crediting performance in a reduction in force, including 
policies for assigning additional retention credit based on performance. 
Such policies must comply with 5 U.S.C. chapter 35 and 5 CFR 351.504.



Sec.  9701.410  DHS responsibilities.

    In carrying out its performance management system(s), DHS must--
    (a) Transfer ratings between subordinate organizations and to other 
Federal departments or agencies;
    (b) Evaluate its performance management system(s) for effectiveness 
and compliance with this subpart, DHS implementing directives and 
policies, and the provisions of 5 U.S.C. chapter 23 that set forth the 
merit system principles and prohibited personnel practices;
    (c) Provide OPM with a copy of the implementing directives, 
policies, and procedures that implement this subpart; and
    (d) Comply with 29 CFR 1614.102(a)(5), which requires agencies to 
review, evaluate, and control managerial and supervisory performance to 
ensure enforcement of the policy of equal opportunity.



                  Subpart E_Labor-Management Relations

    Editorial Note: At 73 FR 58435, Oct. 7, 2008, the application of 
subpart E to part 9701 was rescinded.



Sec.  9701.501  Purpose.

    This subpart contains the regulations implementing the provisions of 
5 U.S.C. 9701(b) relating to the Department's labor-management relations 
system. The Department was created in recognition of the paramount 
interest in safeguarding the American people, without compromising 
statutorily protected employee rights. For this reason

[[Page 1098]]

Congress stressed that personnel systems established by the Department 
and OPM must be flexible and contemporary, enabling the Department to 
rapidly respond to threats to our Nation. The labor-management relations 
regulations in this subpart are designed to meet these compelling 
concerns and must be interpreted with the Department's mission foremost 
in mind. The regulations also recognize the rights of DHS employees to 
organize and bargain collectively, subject to any exclusion from 
coverage or limitation on negotiability established by law, including 
these regulations, applicable Executive orders, and any other legal 
authority.



Sec.  9701.502  Rule of construction.

    In interpreting this subpart, the rule of construction in Sec.  
9701.106(a)(2) must be applied.



Sec.  9701.503  Waivers.

    When a specified category of employees is covered by the labor-
management relations system established under this subpart, the 
provisions of 5 U.S.C. 7101 through 7135 are waived with respect to that 
category of employees, except as otherwise specified in this part 
(including Sec.  9701.106).



Sec.  9701.504  Definitions.

    In this subpart:
    Authority means the Federal Labor Relations Authority described in 5 
U.S.C. 7104(a).
    Collective bargaining means the performance of the mutual obligation 
of a management representative of the Department and an exclusive 
representative of employees in an appropriate unit in the Department to 
meet at reasonable times and to consult and bargain in a good faith 
effort to reach agreement with respect to the conditions of employment 
affecting such employees and to execute, if requested by either party, a 
written document incorporating any collective bargaining agreement 
reached, but the obligation referred to in this paragraph does not 
compel either party to agree to a proposal or to make a concession.
    Collective bargaining agreement means an agreement entered into as a 
result of collective bargaining pursuant to the provisions of this 
subpart.
    Component means any organizational subdivision of the Department.
    Conditions of employment means personnel policies, practices, and 
matters affecting working conditions-whether established by rule, 
regulation, or otherwise--except that such term does not include 
policies, practices, and matters relating to--
    (1) Political activities prohibited under 5 U.S.C. chapter 73, 
subchapter III;
    (2) The classification of any position, including any classification 
determinations under subpart B of this part;
    (3) The pay of any position, including any determinations regarding 
pay or adjustments thereto under subpart C of this part; or
    (4) Any matters specifically provided for by Federal statute.
    Confidential employee means an employee who acts in a confidential 
capacity with respect to an individual who formulates or effectuates 
management policies in the field of labor-management relations.
    Day means a calendar day.
    Dues means dues, fees, and assessments.
    Exclusive representative means any labor organization which is 
recognized as the exclusive representative of employees in an 
appropriate unit consistent with the Department's organizational 
structure, pursuant to 5 U.S.C. 7111 or as otherwise provided by Sec.  
9701.514.
    Grievance means any complaint--
    (1) By any employee concerning any matter relating to the conditions 
of employment of the employee;
    (2) By any labor organization concerning any matter relating to the 
conditions of employment of any employee; or
    (3) By any employee, labor organization, or the Department 
concerning--
    (i) The effect or interpretation, or a claim of breach, of a 
collective bargaining agreement; or
    (ii) Any claimed violation, misinterpretation, or misapplication of 
any law, rule, or regulation issued for the purpose of affecting 
conditions of employment.

[[Page 1099]]

    HSLRB means the Homeland Security Labor Relations Board.
    Labor organization means an organization composed in whole or in 
part of Federal employees, in which employees participate and pay dues, 
and which has as a purpose the dealing with the Department concerning 
grievances and conditions of employment, but does not include--
    (1) An organization which, by its constitution, bylaws, tacit 
agreement among its members, or otherwise, denies membership because of 
race, color, creed, national origin, sex, age, preferential or 
nonpreferential civil service status, political affiliation, marital 
status, or handicapping condition;
    (2) An organization which advocates the overthrow of the 
constitutional form of government of the United States;
    (3) An organization sponsored by the Department; or
    (4) An organization which participates in the conduct of a strike 
against the Government or any agency thereof or imposes a duty or 
obligation to conduct, assist, or participate in such a strike.
    Management official means an individual employed by the Department 
in a position the duties and responsibilities of which require or 
authorize the individual to formulate, determine, or influence the 
policies of the Department or who has the authority to recommend such 
action, if the exercise of the authority is not merely routine or 
clerical in nature, but requires the consistent exercise of independent 
judgment.
    Professional employee has the meaning given that term in 5 U.S.C. 
7103(a)(15).
    Supervisor means an individual employed by the Department having 
authority in the interest of the Department to hire, direct, assign, 
promote, reward, transfer, furlough, layoff, recall, suspend, 
discipline, or remove employees, to adjust their grievances, or to 
effectively recommend such action, if the exercise of the authority is 
not merely routine or clerical in nature but requires the consistent 
exercise of independent judgment.



Sec.  9701.505  Coverage.

    (a) Employees covered. This subpart applies to eligible DHS 
employees, subject to a determination by the Secretary or designee under 
Sec.  9701.102(b), except as provided in paragraph (b) of this section. 
DHS employees who would otherwise be covered by 5 U.S.C. chapter 71 are 
eligible for coverage under this subpart. In addition, this subpart 
applies to an employee whose employment has ceased because of an unfair 
labor practice under Sec.  9701.517 of this subpart and who has not 
obtained any other regular and substantially equivalent employment.
    (b) Employees excluded. This subpart does not apply to--
    (1) An alien or noncitizen of the United States who occupies a 
position outside the United States;
    (2) A member of the uniformed services as defined in 5 U.S.C. 
2101(3);
    (3) A supervisor or a management official;
    (4) Any person who participates in a strike in violation of 5 U.S.C. 
7311;
    (5) Employees of the United States Secret Service, including the 
United States Secret Service Uniformed Division;
    (6) Employees of the Transportation Security Administration; or
    (7) Any employee excluded pursuant to Sec.  9701.514 or any other 
legal authority.



Sec.  9701.506  Impact on existing agreements.

    (a) Any provision of a collective bargaining agreement that is 
inconsistent with this part and/or its implementing directives is 
unenforceable on the effective date of coverage under the applicable 
subpart or directive. In accordance with procedures and time limits 
established by the HSLRB under Sec.  9701.509, an exclusive 
representative may appeal to the HSLRB the Department's determination 
that a provision is unenforceable. Provisions that are identified by the 
Department as unenforceable remain unenforceable unless held otherwise 
by the HSLRB on appeal. The Secretary or designee, in his or her sole 
and exclusive discretion, may continue all or part of a particular 
provision(s) with respect to a specific category or categories of 
employees

[[Page 1100]]

and may cancel such continued provisions at any time; such 
determinations are not precedential.
    (b) Upon request by an exclusive representative, the parties will 
have 60 days after the effective date of coverage under the applicable 
subpart and/or implementing directive to bring into conformance those 
remaining negotiable terms directly affected by the terms rendered 
unenforceable by the applicable subpart and/or implementing directive. 
If the parties fail to reach agreement by that date, they may utilize 
the negotiation impasse provisions of Sec.  9701.519 to resolve the 
matter. Agreements reached under this section are subject to approval 
under Sec.  9701.515(d). Nothing in this paragraph will delay the 
effective date of an implementing directive.



Sec.  9701.507  Employee rights.

    Each employee has the right to form, join, or assist any labor 
organization, or to refrain from any such activity, freely and without 
fear of penalty or reprisal, and each employee must be protected in the 
exercise of such right. Except as otherwise provided under this subpart, 
such right includes the right--
    (a) To act for a labor organization in the capacity of a 
representative and the right, in that capacity, to present the views of 
the labor organization to heads of agencies and other officials of the 
executive branch of the Government, the Congress, or other appropriate 
authorities; and
    (b) To engage in collective bargaining with respect to conditions of 
employment through representatives chosen by employees under this 
subpart.



Sec.  9701.508  Homeland Security Labor Relations Board.

    (a) Composition. (1) The Homeland Security Labor Relations Board is 
composed of at least three members who will be appointed by the 
Secretary for terms of 3 years, except that the appointments of the 
initial HSLRB members will be for terms of 2, 3, and 4 years, 
respectively. The Secretary may extend the term of any member beyond 3 
years when necessary to provide for an orderly transition and/or appoint 
the member for an additional term. The Secretary, in his or her sole and 
exclusive discretion, may appoint additional members to the HSLRB; in so 
doing, he or she will make such appointments to ensure that the HSLRB 
consists of an odd number of members.
    (2) Members of the HSLRB must be independent, distinguished citizens 
of the United States who are well known for their integrity and 
impartiality. Members must have expertise in labor relations, law 
enforcement, or national/homeland or other related security matters. At 
least one member of the Board must have experience in labor relations. 
Members must be able to acquire and maintain an appropriate security 
clearance. Members may be removed by the Secretary on the same grounds 
as an FLRA member.
    (3) An individual chosen to fill a vacancy on the HSLRB will be 
appointed for the unexpired term of the member who is replaced.
    (b) Appointment of the Chair. The Secretary, at his or her sole and 
exclusive discretion, will appoint one member to serve as Chair of the 
HSLRB.
    (c) Appointment procedures for non-Chair HSLRB members. (1) The 
appointments of the two non-Chair HSLRB members will be made by the 
Secretary after he or she considers any lists of nominees submitted by 
labor organizations that represent employees in the Department of 
Homeland Security.
    (2) The submission of lists of recommended nominees by labor 
organizations must be in accordance with timelines and requirements set 
forth by the Secretary, who may provide for additional consultation in 
order to obtain further information about a recommended nominee. The 
ability of the Secretary to appoint HSLRB members may not be delayed or 
otherwise affected by the failure of any labor organization to provide a 
list of nominees that meets the timeframe and requirements established 
by the Secretary.
    (d) Appointment of additional non-Chair HSLRB members. If the 
Secretary determines that additional members are needed, he or she may, 
subject to the criteria set forth in paragraph

[[Page 1101]]

(a)(2) of this section, appoint the additional members according to the 
procedures established by paragraph (c) of this section.
    (e) Filling a HSLRB vacancy. A HSLRB vacancy will be filled 
according to the procedure in effect at the time of the appointment.
    (f) Procedures of the HSLRB. (1) The HSLRB will establish procedures 
for the fair, impartial, and expeditious assignment and disposition of 
cases. To the extent practicable, the HSLRB will use a single, 
integrated process to address all matters associated with a negotiations 
dispute, including unfair labor practices, negotiability disputes, and 
bargaining impasses. The HSLRB may, pursuant to its regulations, use a 
combination of mediation, factfinding, and any other appropriate dispute 
resolution method to resolve all such disputes at the earliest 
practicable time and with a minimum of process. Such proceedings will be 
conducted by the HSLRB, a HSLRB member, or employee of the HSLRB. 
Individual HSLRB members may decide a particular dispute. However, at 
the motion of a party upon its initial request for HSLRB assistance or 
upon the HSLRB's own motion at any time, the full HSLRB (or, where the 
Secretary appoints more than three members, a three-person panel of the 
HSLRB) may decide a particular dispute involving a matter of first 
impression or a major policy.
    (2) In cases where the full HSLRB acts, a vote of the majority of 
the HSLRB (or a three-person panel of the HSLRB) will be dispositive. A 
vacancy on the HSLRB does not impair the right of the remaining members 
to exercise all of the powers of the HSLRB. The vote of the Chair will 
be dispositive in the event of a tie.
    (g) Finality of HSLRB decisions. Decisions of the HSLRB are final 
and binding. However, in cases involving unfair labor practices and/or 
negotiability disputes decided by a single member, a party may seek 
review of that decision with the full HSLRB, according to rules 
prescribed by the HSLRB. In such cases the initial decision is stayed 
pending the final decision by the full HSLRB.
    (h) Review of a HSLRB decision. (1) In order to obtain judicial 
review of a HSLRB decision, a party must request a review of the record 
of a HSLRB decision by the Authority by filing such a request in writing 
within 15 days after the issuance of the decision. Within 15 days after 
the Authority's receipt of the request for a review of the record, any 
response must be filed. A party may each submit, and the Authority may 
grant for good cause shown, a request for a single extension of time not 
to exceed a maximum of 15 additional days. The Authority will establish, 
in conjunction with the HSLRB, standards for the sufficiency of the 
record and other procedures, including notice to the parties. The 
Authority must defer to findings of fact and interpretations of this 
part made by the HSLRB and sustain the HSLRB's decision unless the 
requesting party shows that the HSLRB's decision was--
    (i) Arbitrary, capricious, an abuse of discretion, or otherwise not 
in accordance with law;
    (ii) Based on error in applying the HSLRB's procedures that resulted 
in substantial prejudice to a party affecting the outcome; or
    (iii) Unsupported by substantial evidence.
    (2) The Authority must complete its review of the record and issue a 
final decision within 30 days after receiving the party's timely 
response to such request for review. This 30-day time limit is 
mandatory, except that the Authority may extend its time for review by a 
maximum of 15 additional days if it determines that--
    (i) The case is unusually complex; or
    (ii) An extension is necessary to prevent any prejudice to the 
parties that would otherwise result.
    (3) No extension beyond that provided by paragraph (h)(2) of this 
section is permitted.
    (4) If the Authority does not issue a final decision within the 
mandatory time limit established by paragraph (h) of this section, the 
Authority will be considered to have denied the request for review of 
the HSLRB's decision, which will constitute a final decision of the 
Authority and is subject to judicial review in accordance with 5 U.S.C. 
7123.

[[Page 1102]]



Sec.  9701.509  Powers and duties of the HSLRB.

    (a) The HSLRB may, to the extent provided in this subpart and in 
accordance with regulations prescribed by the HSLRB--
    (1) Resolve issues relating to the scope of bargaining and the duty 
to bargain in good faith under Sec.  9701.518 and conduct hearings and 
resolve complaints of unfair labor practices concerning--
    (i) The duty to bargain in good faith; and
    (ii) Strikes, work stoppages, slowdowns, and picketing, or condoning 
such activity by failing to take action to prevent or stop such 
activity;
    (2) Resolve disputes concerning requests for information under Sec.  
9701.515(b)(5) and (c);
    (3) Resolve exceptions to arbitration awards involving the exercise 
of management rights, as defined in Sec.  9701.511, and the duty to 
bargain, as defined in Sec.  9701.518. The HSLRB must conduct any review 
of an arbitral award in accordance with the same standards set forth in 
5 U.S.C. 7122(a), which is not waived for the purpose of this subpart 
but which is modified to apply to this section and to read ``HSLRB'' 
wherever the term ``Authority'' appears;
    (4) Resolve negotiation impasses in accordance with Sec.  9701.519;
    (5) Conduct de novo review of legal conclusions involving all 
matters within the HSLRB's jurisdiction;
    (6) Have discretion to evaluate the evidence presented in the record 
and reach its own independent conclusions with respect to the matters at 
issue; and
    (7) Assume jurisdiction over any matter concerning Department 
employees that has been submitted to FLRA pursuant to Sec.  9701.510, if 
the HSLRB determines that the matter affects homeland security.
    (b) The HSLRB may issue binding Department-wide opinions, which may 
be appealed as if they were decisions of the HSLRB in accordance with 
Sec.  9701.508(h).
    (c) In issuing opinions under paragraph (b) of this section, the 
HSLRB may elect to consult with the Authority.
    (d)(1) In any matter filed with the HSLRB, if the responding party 
believes that the HSLRB lacks jurisdiction, that party must timely raise 
the issue with the HSLRB and simultaneously file a copy of its response 
with the Authority in accordance with regulations established by the 
HSLRB. The HSLRB's determination with regard to its jurisdiction in a 
particular matter is final and not subject to review by the Authority.
    (2) If a matter involves one or more issues that are appropriately 
before the HSLRB and one or more issues that are appropriately before 
the Authority, the matter must be filed with the HSLRB in accordance 
with its procedures. The HSLRB will have primary jurisdiction over the 
matter. The HSLRB will decide those issues within its jurisdiction and 
will promptly transfer the matter to the Authority for resolution of any 
remaining issues.



Sec.  9701.510  Powers and duties of the Federal Labor Relations Authority.

    (a) The Federal Labor Relations Authority may, to the extent 
provided in this subpart and in accordance with regulations prescribed 
by the Authority, make the following determinations with respect to the 
Department:
    (1) Determine the appropriateness of units pursuant to the 
provisions of Sec.  9701.514;
    (2) Supervise or conduct elections to determine whether a labor 
organization has been selected as an exclusive representative by a 
majority of the employees in an appropriate unit and otherwise 
administer the provisions of 5 U.S.C. 7111 relating to the according of 
exclusive recognition to labor organizations, which are not waived for 
the purpose of this subpart but which are modified to apply to this 
section;
    (3) Conduct hearings and resolve complaints of unfair labor 
practices under Sec.  9701.517(a)(1) through (4) and (b)(1) through (4), 
and in accordance with the provisions of 5 U.S.C. 7118, which is not 
waived for this purpose but which is modified to apply to this section;
    (4) Resolve exceptions to arbitrators' awards otherwise in its 
jurisdiction and not involving the exercise of management rights under 
Sec.  9701.511, the

[[Page 1103]]

duty to bargain, as defined in Sec.  9701.518, and matters under Sec.  
9701.521(f); and
    (5) Review HSLRB decisions and issue final decisions pursuant to 
Sec.  9701.508(h).
    (b) In any matter filed with the Authority, if the responding party 
believes that the Authority lacks jurisdiction, that party must timely 
raise the issue with the Authority and simultaneously file a copy of its 
response with the HSLRB in accordance with regulations established by 
the Authority. The Authority must promptly transfer the case to the 
HSLRB, which will determine whether the matter is within the HSLRB's 
jurisdiction. If the HSLRB determines that the matter is not within its 
jurisdiction, the HSLRB will return the matter to the Authority for 
appropriate action. The HSLRB's determination with regard to its 
jurisdiction in a particular matter is final and not subject to review 
by the Authority.
    (c) Judicial review of any Authority decision is as prescribed in 5 
U.S.C. 7123, which is not waived.



Sec.  9701.511  Management rights.

    (a) Subject to paragraphs (b), (c), and (d) of this section, nothing 
in this subpart may affect the authority of any management official or 
supervisor of the Department--
    (1) To determine the mission, budget, organization, number of 
employees, and internal security practices of the Department;
    (2) To hire, assign, and direct employees in the Department; to 
assign work, make determinations with respect to contracting out, and to 
determine the personnel by which Departmental operations may be 
conducted; to determine the numbers, types, grades, or occupational 
clusters and bands of employees or positions assigned to any 
organizational subdivision, work project or tour of duty, and the 
technology, methods, and means of performing work; to assign and deploy 
employees to meet any operational demand; and to take whatever other 
actions may be necessary to carry out the Department's mission; and
    (3) To lay off and retain employees, or to suspend, remove, reduce 
in grade, band, or pay, or take other disciplinary action against such 
employees or, with respect to filling positions, to make selections for 
appointments from properly ranked and certified candidates for promotion 
or from any other appropriate source.
    (b) Management is prohibited from bargaining over the exercise of 
any authority under paragraph (a) of this section or the procedures that 
it will observe in exercising the authorities set forth in paragraphs 
(a)(1) and (2) of this section.
    (c) Notwithstanding paragraph (b) of this section, management will 
confer with an exclusive representative over the procedures it will 
observe in exercising the authorities set forth in paragraphs (a)(1) and 
(2) of this section, in accordance with the process set forth in Sec.  
9701.512.
    (d) If an obligation exists under Sec.  9701.518 to bargain, confer, 
or consult regarding the exercise of any authority under paragraph (a) 
of this section, management must provide notice to the exclusive 
representative concurrently with the exercise of that authority and an 
opportunity to present its views and recommendations regarding the 
exercise of such authority under paragraph (a) of this section. However, 
nothing in this section prevents management from exercising its 
discretion to provide notice as far in advance of the exercise of that 
authority as appropriate. Further, nothing in paragraph (d) of this 
section establishes an independent right to bargain, confer, or consult.
    (e) To the extent otherwise required by Sec.  9701.518 and at the 
request of an exclusive representative, the parties will bargain at the 
level of recognition (unless otherwise delegated below that level, at 
their sole and exclusive discretion) over--
    (1) Appropriate arrangements for employees adversely affected by the 
exercise of any authority under paragraph (a)(3) of this section and 
procedures which management officials and supervisors will observe in 
exercising any authority under paragraph (a)(3) of this section; and

[[Page 1104]]

    (2)(i) Appropriate arrangements for employees adversely affected by 
the exercise of any authority under paragraph (a)(1) or (2) of this 
section, provided that the effects of such exercise have a significant 
and substantial impact on the bargaining unit, or on those employees in 
that part of the bargaining unit affected by the action or event, and 
are expected to exceed or have exceeded 60 days. Appropriate 
arrangements within the duty to bargain include proposals on matters 
such as--
    (A) Personal hardships and safety measures; and
    (B) Reimbursement of out-of-pocket expenses incurred by employees as 
the direct result of the exercise of authorities under this section, to 
the extent such reimbursement is in accordance with applicable law and 
governing regulations.
    (ii) Appropriate arrangements within the duty to bargain do not 
include proposals on matters such as--
    (A) The routine assignment to specific duties, shifts, or work on a 
regular or overtime basis; and
    (B) Compensation for expenses not actually incurred, or pay or 
credit for work not actually performed.
    (f) Nothing in this section will delay or prevent the Department 
from exercising its authority. Any agreements reached with respect to 
paragraph (e)(2) of this section will not be precedential or binding on 
subsequent acts, or retroactively applied, except at the Department's 
sole, exclusive, and unreviewable discretion.



Sec.  9701.512  Conferring on procedures for the exercise of management rights.

    (a) As provided by Sec.  9701.511(c), management, at the level of 
recognition, will confer with an appropriate exclusive representative to 
consider its views and recommendations with regard to procedures that 
management will observe in exercising its rights under Sec.  
9701.511(a)(1) and (2). This process is not subject to the requirements 
established by Sec. Sec.  9701.517(a)(5) (regarding enforcement of the 
duty to consult or negotiate), 9701.518 (regarding the duty to bargain 
and consult), and 9701.519 (regarding impasse procedures). Nothing in 
this section requires that the parties reach agreement on any covered 
matter. The parties may, upon mutual agreement, provide for the Federal 
Mediation and Conciliation Service or another third party to assist in 
this process. Neither the HSLRB nor the Authority may intervene in this 
process.
    (b) The parties will meet at reasonable times and places but for no 
longer than 30 days, including any voluntary third party assistance, 
unless the parties mutually agree to extend this period.
    (c) Nothing in the process established under this section will delay 
the exercise of a management right under Sec.  9701.511(a)(1) and (2).
    (d) Management retains the sole, exclusive, and unreviewable 
discretion to determine the procedures that it will observe in 
exercising the authorities set forth in Sec.  9701.511(a)(1) and (2) and 
to deviate from such procedures, as necessary.



Sec.  9701.513  Exclusive recognition of labor organizations.

    The Department must accord exclusive recognition to a labor 
organization if the organization has been selected as the 
representative, in a secret ballot election, by a majority of the 
employees in an appropriate unit as determined by the Authority, who 
cast valid ballots in the election.



Sec.  9701.514  Determination of appropriate units for 
labor organization representation.

    (a) The Authority will determine the appropriateness of any unit. 
The Authority must determine in each case whether, in order to ensure 
employees the fullest freedom in exercising the rights guaranteed under 
this subpart, the appropriate unit should be established on a 
Department, plant, installation, functional, or other basis and will 
determine any unit to be an appropriate unit only if the determination 
will ensure a clear and identifiable community of interest among the 
employees in the unit and will promote effective dealings with, and 
efficiency of the operations of the Department, consistent with the 
Department's mission and organizational structure.

[[Page 1105]]

    (b) A unit may not be determined to be appropriate under this 
section solely on the basis of the extent to which employees in the 
proposed unit have organized, nor may a unit be determined to be 
appropriate if it includes--
    (1) Except as provided under 5 U.S.C. 7135(a)(2), which is not 
waived for the purpose of this subpart, any management official or 
supervisor;
    (2) A confidential employee;
    (3) An employee engaged in personnel work in other than a purely 
clerical capacity;
    (4) An employee engaged in administering the provisions of this 
subpart;
    (5) Both professional employees and other employees, unless a 
majority of the professional employees vote for inclusion in the unit;
    (6) Any employee engaged in intelligence, counterintelligence, 
investigative, or security work which directly affects national 
security; or
    (7) Any employee primarily engaged in investigation or audit 
functions relating to the work of individuals employed by the Department 
whose duties directly affect the internal security of the Department, 
but only if the functions are undertaken to ensure that the duties are 
discharged honestly and with integrity.
    (c) Pursuant to 6 U.S.C. 412(b)(2), a unit to which continued 
recognition was provided upon transfer to DHS may not include an 
employee whose primary duty has materially changed to consist of 
intelligence, counterintelligence, or investigative work directly 
related to terrorism investigation.
    (d) Any employee who is engaged in administering any provision of 
law or this subpart relating to labor-management relations may not be 
represented by a labor organization--
    (1) Which represents other individuals to whom such provision 
applies; or
    (2) Which is affiliated directly or indirectly with an organization 
which represents other individuals to whom such provision applies.
    (e) Two or more units in the Department for which a labor 
organization is the exclusive representative may, upon petition by the 
Department or labor organization, be consolidated with or without an 
election into a single larger unit if the Authority considers the larger 
unit to be appropriate. The Authority will certify the labor 
organization as the exclusive representative of the new larger unit.



Sec.  9701.515  Representation rights and duties.

    (a)(1) A labor organization which has been accorded exclusive 
recognition is the exclusive representative of the employees in the unit 
it represents and is entitled to act for, and negotiate collective 
bargaining agreements covering, all employees in the unit. An exclusive 
representative is responsible for representing the interests of all 
employees in the unit it represents without discrimination and without 
regard to labor organization membership.
    (2) An exclusive representative of an appropriate unit must be given 
the opportunity to be represented at--
    (i) Any formal discussion between Department representative(s) and 
bargaining unit employees, the purpose of which is to discuss and/or 
announce new or substantially changed personnel policies, practices, or 
working conditions. This right does not apply to meetings between 
Department representative(s) and bargaining unit employees for the 
purpose of discussing operational matters where any discussion of 
personnel policies, practices or working conditions--
    (A) Constitutes a reiteration or application of existing personnel 
policies, practices, or working conditions;
    (B) Is incidental or otherwise peripheral to the announced purpose 
of the meeting; or
    (C) Does not result in an announcement of a change to, or a promise 
to change, an existing personnel policy(s), practice(s), or working 
condition(s);
    (ii) Any discussion between one or more Department representatives 
and one or more bargaining unit employees concerning any grievance;
    (iii) Any examination of a bargaining unit employee by a 
representative of the Department in connection with an investigation if 
the employee reasonably believes that the examination may result in 
disciplinary action against the employee and the employee requests such 
representation; or
    (iv) Any discussion between a representative of the Department and a

[[Page 1106]]

bargaining unit employee in connection with a formal complaint of 
discrimination only if the employee, at his or her sole discretion, 
requests such representation.
    (3) Notwithstanding any other provision of this paragraph, if the 
Supreme Court determines that the definition of ``grievance'' in 5 
U.S.C. 7103(a)(9) includes a formal complaint of discrimination filed by 
a bargaining unit employee, the definition of grievance in Sec.  
9701.504, and its application to this section, will be interpreted and 
applied consistent with that decision.
    (4) The Department must annually inform its employees of their 
rights under paragraph (a)(2)(iii) of this section.
    (5) Except in the case of grievance procedures negotiated under this 
subpart, the rights of an exclusive representative under this section 
may not be construed to preclude an employee from--
    (i) Being represented by an attorney or other representative of the 
employee's own choosing, other than the exclusive representative, in any 
other grievance or appeal action; or
    (ii) Exercising other grievance or appellate rights established by 
law, rule, or regulation.
    (b) The duty of the Department or appropriate component(s) of the 
Department and an exclusive representative to negotiate in good faith 
under paragraph (a) of this section includes the obligation--
    (1) To approach the negotiations with a sincere resolve to reach a 
collective bargaining agreement;
    (2) To be represented at the negotiations by duly authorized 
representatives prepared to discuss and negotiate on conditions of 
employment;
    (3) To meet at reasonable times and convenient places as frequently 
as may be necessary, and to avoid unnecessary delays;
    (4) If agreement is reached, to execute on the request of any party 
to the negotiation, a written document embodying the agreed terms, and 
to take such steps as are necessary to implement such agreement; and
    (5) In the case of the Department or appropriate component(s) of the 
Department, to furnish information to an exclusive representative, or 
its authorized representative, when--
    (i) Such information exists, is normally maintained, and is 
reasonably available;
    (ii) The exclusive representative has requested such information and 
demonstrated a particularized need for the information in order to 
perform its representational functions in grievance proceedings or in 
negotiations; and
    (iii) Disclosure is not prohibited by law.
    (c) Disclosure of information in paragraph (b)(5) of this section 
does not include the following:
    (1) Disclosure prohibited by law or regulations, including, but not 
limited to, the regulations in this part, Governmentwide rules and 
regulations, Departmental implementing directives and other policies and 
regulations, and Executive orders;
    (2) Disclosure of information if adequate alternative means exist 
for obtaining the requested information, or if proper discussion, 
understanding, or negotiation of a particular subject within the scope 
of collective bargaining is possible without recourse to the 
information;
    (3) Internal Departmental guidance, counsel, advice, or training for 
managers and supervisors relating to collective bargaining;
    (4) Any disclosure that would compromise the Department's mission, 
security, or employee safety; and
    (5) Home addresses, telephone numbers, email addresses, or any other 
information not related to an employee's work.
    (d)(1) An agreement between the Department or appropriate 
component(s) of the Department and the exclusive representative is 
subject to approval by the Secretary or designee.
    (2) The Secretary or designee must approve the agreement within 30 
days after the date the agreement is executed if the agreement is in 
accordance with the provisions of these regulations and any other 
applicable law, rule, or regulation.
    (3) If the Secretary or designee does not approve or disapprove the 
agreement within the 30-day period specified in paragraph (d)(2) of this 
section, the agreement must take effect and is

[[Page 1107]]

binding on the Department or component(s), as appropriate, and the 
exclusive representative, but only if consistent with law, the 
regulations in this part, Governmentwide rules and regulations, 
Departmental implementing directives and other policies and regulations, 
and Executive orders.
    (4) A local agreement subject to a national or other controlling 
agreement at a higher level may be approved under the procedures of the 
controlling agreement or, if none, under Departmental regulations. 
Bargaining will be at the level of recognition except where delegated.
    (5) Provisions in existing collective bargaining agreements are 
unenforceable if an authorized agency official determines that they are 
contrary to law, the regulations in this part, Governmentwide rules and 
regulations, Departmental implementing directives (as provided by Sec.  
9701.506) and other policies and regulations, or Executive orders.



Sec.  9701.516  Allotments to representatives.

    (a) If the Department has received from an employee in an 
appropriate unit a written assignment which authorizes the Department to 
deduct from the pay of the employee amounts for the payment of regular 
and periodic dues of the exclusive representative of the unit, the 
Department must honor the assignment and make an appropriate allotment 
pursuant to the assignment. Any such allotment must be made at no cost 
to the exclusive representative or the employee. Except as provided 
under paragraph (b) of this section, any such assignment may not be 
revoked for a period of 1 year.
    (b) An allotment under paragraph (a) of this section for the 
deduction of dues with respect to any employee terminates when--
    (1) The agreement between the Department or Department component and 
the exclusive representative involved ceases to be applicable to the 
employee; or
    (2) The employee is suspended or expelled from membership in the 
exclusive representative.
    (c)(1) Subject to paragraph (c)(2) of this section, if a petition 
has been filed with the Authority by a labor organization alleging that 
10 percent of the employees in an appropriate unit in the Department 
have membership in the labor organization, the Authority must 
investigate the petition to determine its validity. Upon certification 
by the Authority of the validity of the petition, the Department has a 
duty to negotiate with the labor organization solely concerning the 
deduction of dues of the labor organization from the pay of the members 
of the labor organization who are employees in the unit and who make a 
voluntary allotment for such purpose.
    (2)(i) The provisions of paragraph (c)(1) of this section do not 
apply in the case of any appropriate unit for which there is an 
exclusive representative.
    (ii) Any agreement under paragraph (c)(1) of this section between a 
labor organization and the Department or Department component with 
respect to an appropriate unit becomes null and void upon the 
certification of an exclusive representative of the unit.



Sec.  9701.517  Unfair labor practices.

    (a) For the purpose of this subpart, it is an unfair labor practice 
for the Department--
    (1) To interfere with, restrain, or coerce any employee in the 
exercise by the employee of any right under this subpart;
    (2) To encourage or discourage membership in any labor organization 
by discrimination in connection with hiring, tenure, promotion, or other 
conditions of employment;
    (3) To sponsor, control, or otherwise assist any labor organization, 
other than to furnish, upon request, customary and routine services and 
facilities on an impartial basis to other labor organizations having 
equivalent status;
    (4) To discipline or otherwise discriminate against an employee 
because the employee has filed a complaint or petition, or has given any 
information or testimony under this subpart;
    (5) To refuse, as determined by the HSLRB, to consult or negotiate 
in good faith with a labor organization, as required by this subpart;
    (6) To fail or refuse, as determined by the HSLRB, to cooperate in 
impasse

[[Page 1108]]

procedures and impasse decisions, as required by this subpart; or
    (7) To fail or refuse otherwise to comply with any provision of this 
subpart.
    (b) For the purpose of this subpart, it is an unfair labor practice 
for a labor organization--
    (1) To interfere with, restrain, or coerce any employee in the 
exercise by the employee of any right under this subpart;
    (2) To cause or attempt to cause the Department to discriminate 
against any employee in the exercise by the employee of any right under 
this subpart;
    (3) To coerce, discipline, fine, or attempt to coerce a member of 
the labor organization as punishment, reprisal, or for the purpose of 
hindering or impeding the member's work performance or productivity as 
an employee or the discharge of the member's duties as an employee;
    (4) To discriminate against an employee with regard to the terms and 
conditions of membership in the labor organization on the basis of race, 
color, creed, national origin, sex, age, preferential or nonpreferential 
civil service status, political affiliation, marital status, or 
handicapping condition;
    (5) To refuse, as determined by the HSLRB, to consult or negotiate 
in good faith with the Department as required by this subpart;
    (6) To fail or refuse, as determined by the HSLRB, to cooperate in 
impasse procedures and impasse decisions as required by this subpart;
    (7)(i) To call, or participate in, a strike, work stoppage, or 
slowdown, or picketing of the Department in a labor-management dispute 
if such picketing interferes with an agency's operations; or
    (ii) To condone any activity described in paragraph (b)(7)(i) of 
this section by failing to take action to prevent or stop such activity; 
or
    (8) To otherwise fail or refuse to comply with any provision of this 
subpart.
    (c) Notwithstanding paragraph (b)(7) of this section, informational 
picketing which does not interfere with the Department's operations will 
not be considered an unfair labor practice.
    (d) For the purpose of this subpart, it is an unfair labor practice 
for an exclusive representative to deny membership to any employee in 
the appropriate unit represented by the labor organization, except for 
failure to meet reasonable occupational standards uniformly required for 
admission or to tender dues uniformly required as a condition of 
acquiring and retaining membership. This does not preclude any labor 
organization from enforcing discipline in accordance with procedures 
under its constitution or bylaws to the extent consistent with the 
provisions of this subpart.
    (e) The HSLRB will not consider any unfair labor practice allegation 
filed more than 6 months after the alleged unfair labor practice 
occurred, unless the HSLRB determines, pursuant to its regulations, that 
there is good cause for the late filing.
    (f) Issues which can properly be raised under an appeals procedure 
may not be raised as unfair labor practices prohibited under this 
section. Except where an employee has an option of using the negotiated 
grievance procedure or an appeals procedure in connection with an 
adverse action under subpart F of this part, issues which can be raised 
under a grievance procedure may, in the discretion of the aggrieved 
party, be raised under the grievance procedure or as an unfair labor 
practice under this section, but not under both procedures.
    (g) The expression of any personal view, argument, opinion, or the 
making of any statement which publicizes the fact of a representational 
election and encourages employees to exercise their right to vote in 
such an election, corrects the record with respect to any false or 
misleading statement made by any person, or informs employees of the 
Government's policy relating to labor-management relations and 
representation, may not, if the expression contains no threat of 
reprisal or force or promise of benefit or was not made under coercive 
conditions--
    (1) Constitute an unfair labor practice under any provision of this 
subpart; or
    (2) Constitute grounds for the setting aside of any election 
conducted under any provision of this subpart.

[[Page 1109]]



Sec.  9701.518  Duty to bargain, confer, and consult.

    (a) The Department or appropriate component(s) of the Department and 
any exclusive representative in any appropriate unit in the Department, 
through appropriate representatives, must meet and negotiate in good 
faith as provided by this subpart for the purpose of arriving at a 
collective bargaining agreement. In addition, the Department or 
appropriate component(s) of the Department and the exclusive 
representative may determine appropriate techniques, consistent with the 
operational rules of the HSLRB, to assist in any negotiation.
    (b) If bargaining over an initial collective bargaining agreement or 
any successor agreement is not completed within 90 days after such 
bargaining begins, the parties may mutually agree to continue bargaining 
or mutually agree to refer the matter to an independent mediator/
arbitrator for resolution. Alternatively, either party may refer the 
matter to the HSLRB for resolution in accordance with procedures 
established by the HSLRB. Either party may refer the matter to the 
Federal Mediation Conciliation Service (FMCS) for assistance at any 
time.
    (c) If the parties bargain during the term of an existing collective 
bargaining agreement over a proposed change that is otherwise 
negotiable, and no agreement is reached within 30 days after such 
bargaining begins, the parties may mutually agree to continue bargaining 
or mutually agree to refer the matter to an independent mediator/
arbitrator for resolution. Alternatively, either party may refer the 
matter to the HSLRB for resolution in accordance with procedures 
established by the HSLRB. Either party may refer the matter to the 
Federal Mediation Conciliation Service (FMCS) for assistance at any 
time.
    (d)(1) Management may not bargain over any matters that are 
inconsistent with law or the regulations in this part, Governmentwide 
rules and regulations, Departmental implementing directives and other 
policies and regulations, or Executive orders.
    (2) In promulgating Departmental policies and regulations that deal 
with otherwise negotiable subjects, the Department will utilize the 
process set forth in Sec.  9701.512, except that the Department will 
confer with those labor organizations that request and have been 
accorded national consultation rights (NCR) established pursuant to 5 
U.S.C. 7113, which is not waived for these purposes, and consult with 
those organizations on other appropriate matters.
    (3) Management has no obligation to bargain over a change to a 
condition of employment unless the change is otherwise negotiable 
pursuant to these regulations and is foreseeable, substantial, and 
significant in terms of both impact and duration on the bargaining unit, 
or on those employees in that part of the bargaining unit affected by 
the change.
    (4) Management has no obligation to confer or consult as required by 
this section unless the change is foreseeable, substantial, and 
significant in terms of both impact and duration on the bargaining unit, 
or on those employees in that part of the bargaining unit affected by 
the change.
    (5) Nothing in paragraphs (b) or (c) of this section prevents or 
delays management from exercising the rights enumerated in Sec.  
9701.511.
    (e) If a management official involved in collective bargaining with 
an exclusive representative alleges that the duty to bargain in good 
faith does not extend to any matter, the exclusive representative may 
appeal the allegation to the HSLRB in accordance with procedures 
established by the HSLRB.



Sec.  9701.519  Negotiation impasses.

    (a) If the Department and exclusive representative are unable to 
reach an agreement under Sec. Sec.  9701.515 or 9701.518, either party 
may submit the disputed issues to the HSLRB for resolution.
    (b) If the parties do not arrive at a settlement after assistance by 
the HSLRB, the HSLRB may take whatever action is necessary and not 
inconsistent with this subpart to resolve the impasse.
    (c) Pursuant to Sec. Sec.  9701.508 and 9701.525, the HSLRB's 
regulations will provide for a single, integrated process to address all 
matters associated with a negotiations dispute, including unfair

[[Page 1110]]

labor practices, negotiability disputes, and bargaining impasses.
    (d) Notice of any final action of the HSLRB under this section must 
be promptly served upon the parties. The action will be binding on such 
parties during the term of the agreement, unless the parties agree 
otherwise.



Sec.  9701.520  Standards of conduct for labor organizations.

    Standards of conduct for labor organizations are those prescribed 
under 5 U.S.C. 7120, which is not waived.



Sec.  9701.521  Grievance procedures.

    (a)(1) Except as provided in paragraph (a)(2) of this section, any 
collective bargaining agreement must provide procedures for the 
settlement of grievances, including questions of arbitrability. Except 
as provided in paragraphs (d), (f), and (g) of this section, the 
procedures must be the exclusive administrative procedures for 
grievances which fall within its coverage.
    (2) Any collective bargaining agreement may exclude any matter from 
the application of the grievance procedures which are provided for in 
the agreement.
    (b)(1) Any negotiated grievance procedure referred to in paragraph 
(a) of this section must be fair and simple, provide for expeditious 
processing, and include procedures that--
    (i) Assure an exclusive representative the right, in its own behalf 
or on behalf of any employee in the unit represented by the exclusive 
representative, to present and process grievances;
    (ii) Assure such an employee the right to present a grievance on the 
employee's own behalf, and assure the exclusive representative the right 
to be present during the grievance proceeding; and
    (iii) Provide that any grievance not satisfactorily settled under 
the negotiated grievance procedure is subject to binding arbitration, 
which may be invoked by either the exclusive representative or the 
Department.
    (2) The provisions of a negotiated grievance procedure providing for 
binding arbitration in accordance with paragraph (b)(1)(iii) of this 
section must, if or to the extent that an alleged prohibited personnel 
practice is involved, allow the arbitrator to order a stay of any 
personnel action in a manner similar to the manner described in 5 U.S.C. 
1221(c) with respect to the Merit Systems Protection Board and order the 
Department to take any disciplinary action identified under 5 U.S.C. 
1215(a)(3) that is otherwise within the authority of the Department to 
take.
    (3) Any employee who is the subject of any disciplinary action 
ordered under paragraph (b)(2) of this section may appeal such action to 
the same extent and in the same manner as if the Department had taken 
the disciplinary action absent arbitration.
    (c) The preceding paragraphs of this section do not apply with 
respect to any matter concerning--
    (1) Any claimed violation of 5 U.S.C. chapter 73, subchapter III 
(relating to prohibited political activities);
    (2) Retirement, life insurance, or health insurance;
    (3) A suspension or removal under Sec.  9701.613;
    (4) A mandatory removal under Sec.  9701.607;
    (5) Any examination, certification, or appointment; and
    (6) Any subject not within the definition of grievance in Sec.  
9701.504 (e.g., the classification or pay of any position), except for 
any other adverse action under subpart F of this part which is not 
otherwise excluded by paragraph (c) of this section.
    (d) To the extent not already excluded by existing collective 
bargaining agreements, the exclusions contained in paragraph (c) of this 
section apply upon the effective date of this subpart, as determined 
under Sec.  9701.102(b).
    (e)(1) An aggrieved employee affected by a prohibited personnel 
practice under 5 U.S.C. 2302(b)(1) which also falls under the coverage 
of the negotiated grievance procedure may raise the matter under the 
applicable statutory procedures, or the negotiated procedure, but not 
both.
    (2) An employee is deemed to have exercised his or her option under 
paragraph (e)(1) of this section to raise the matter under the 
applicable statutory

[[Page 1111]]

procedures, or the negotiated procedure, at such time as the employee 
timely initiates an action under the applicable statutory or regulatory 
procedure or timely files a grievance in writing in accordance with the 
provisions of the parties' negotiated grievance procedure, whichever 
event occurs first.
    (f)(1) For matters covered by subpart G of this part (except for 
mandatory removal offenses under Sec.  9701.707), an aggrieved employee 
may raise the matter under the appeals procedure of Sec.  9701.706 or 
under the negotiated grievance procedure, but not both. An employee will 
be deemed to have exercised his or her option under this section when 
the employee timely files an appeal under the applicable appellate 
procedures or a grievance in accordance with the provisions of the 
parties' negotiated grievance procedure, whichever occurs first.
    (2) An arbitrator hearing a matter appealable under subpart G of 
this part is bound by the applicable provisions of this part.
    (3) Section 7121(f) of title 5, United States Code, is not waived, 
but is modified to provide that--
    (i) Matters covered by subpart G are deemed to be matters covered by 
5 U.S.C. 4303 and 7512 for the purpose of obtaining judicial review; and
    (ii) Judicial review under 5 U.S.C. 7703 will apply to the award of 
an arbitrator in the same manner and under the same conditions as if the 
matter had been decided by MSPB under Sec.  9701.706, including the 
preponderance of the evidence standard.
    (4) In order to ensure consistency, the Department and 
representatives of those labor organizations granted national 
consultation rights may establish a mutually acceptable panel of 
arbitrators who have been trained and qualified to hear adverse action 
grievances under this part.
    (g)(1) An employee may grieve a performance rating of record that 
has not been appealed in connection with an action under subpart G of 
this part. Once an employee raises a performance rating issue in an 
appeal under subpart G of this part, any pending grievance or 
arbitration will be dismissed with prejudice.
    (2) An arbitrator may cancel a performance rating upon a finding 
that management applied the employee's established performance 
expectations in violation of applicable law, Department rule or 
regulation, or provision of collective bargaining agreement in a manner 
prejudicial to the grievant. An arbitrator who has properly canceled an 
employee's appraisal may order management to change the grievant's 
rating only when the arbitrator is able to determine the rating that 
management would have given but for the violation. When an arbitrator is 
unable to determine what the employee's rating would have been but for 
the violation, the arbitrator must remand the case to management for re-
evaluation. Except as otherwise provided by law, an arbitrator may not 
conduct an independent evaluation of the employee's performance or 
otherwise substitute his or her judgment for that of the supervisor.
    (h)(1) This paragraph applies with respect to a prohibited personnel 
practice other than a prohibited personnel practice to which paragraph 
(e) of this section applies.
    (2) An aggrieved employee affected by a prohibited personnel 
practice described in paragraph (h)(1) of this section may elect not 
more than one of the procedures described in paragraph (h)(3) of this 
section with respect thereto. A determination as to whether a particular 
procedure for seeking a remedy has been elected must be made as set 
forth under paragraph (h)(4) of this section.
    (3) The procedures for seeking remedies described in this paragraph 
are as follows:
    (i) An appeal under subpart G of this part;
    (ii) A negotiated grievance under this section; and
    (iii) Corrective action under 5 U.S.C. chapter 12, subchapters II 
and III.
    (4) For the purpose of this paragraph, an employee is considered to 
have elected one of the following, whichever election occurs first:
    (i) The procedure described in paragraph (h)(3)(i) of this section 
if such employee has timely filed a notice of appeal under the 
applicable appellate procedures;

[[Page 1112]]

    (ii) The procedure described in paragraph (h)(3)(ii) of this section 
if such employee has timely filed a grievance in writing, in accordance 
with the provisions of the parties' negotiated procedure; or
    (iii) The procedure described in paragraph (h)(3)(iii) of this 
section if such employee has sought corrective action from the Office of 
Special Counsel by making an allegation under 5 U.S.C. 1214(a)(1).



Sec.  9701.522  Exceptions to arbitration awards.

    (a)(1) In the case of awards involving the exercise of management 
rights or the duty to bargain under Sec. Sec.  9701.511 and 9701.518, 
either party to arbitration under this subpart may file with the HSLRB 
an exception to any arbitrator's award. The HSLRB may take such action 
and make such recommendations concerning the award as is consistent with 
this subpart.
    (2) In the case of awards not involving the exercise of management 
rights or the duty to bargain under Sec. Sec.  9701.511 and 9701.518, 
either party may file exceptions to an arbitration award with the 
Authority pursuant to 5 U.S.C. 7122 (which is not waived for the purpose 
of this subpart but which is modified to apply to arbitration awards 
under this section) and the Authority's regulations.
    (3) Notwithstanding paragraph (a)(2) of this section, exceptions to 
awards relating to a matter described in Sec.  9701.521(f) may not be 
filed with the Authority.
    (b) If no exception to an arbitrator's award is filed under 
paragraph (a) of this section during the 30-day period beginning on the 
date of such award, the award is final and binding. Either party must 
take the actions required by an arbitrator's final award. The award may 
include the payment of back pay (as provided under 5 U.S.C. 5596 and 5 
CFR part 550, subpart H).
    (c) Nothing in this section prevents the HSLRB from determining its 
own jurisdiction without regard to whether any party has raised a 
jurisdictional issue.



Sec.  9701.523  Official time.

    (a) Any employee representing an exclusive representative in the 
negotiation of a collective bargaining agreement under this subpart must 
be authorized official time for such purposes, including attendance at 
impasse proceedings, during the time the employee otherwise would be in 
a duty status. The number of employees for whom official time is 
authorized under this section may not exceed the number of individuals 
designated as representing the Department for such purposes.
    (b) Any activities performed by any employee relating to the 
internal business of the labor organization, including but not limited 
to the solicitation of membership, elections of labor organization 
officials, and collection of dues, must be performed during the time the 
employee is in a nonduty status.
    (c) Except as provided in paragraph (a) of this section, the 
Authority or the HSLRB, as appropriate, will determine whether an 
employee participating for, or on behalf of, a labor organization in any 
phase of proceedings before the Authority or the HSLRB will be 
authorized official time for such purpose during the time the employee 
would otherwise be in a duty status.
    (d) Except as provided in the preceding paragraphs of this section, 
any employee representing an exclusive representative or, in connection 
with any other matter covered by this subpart, any employee in an 
appropriate unit represented by an exclusive representative, must be 
granted official time in any amount the Department and the exclusive 
representative involved agree to be reasonable, necessary, and in the 
public interest.



Sec.  9701.524  Compilation and publication of data.

    (a) The HSLRB must maintain a file of its proceedings and copies of 
all available agreements and arbitration decisions and publish the texts 
of its impasse resolution decisions and the actions taken under Sec.  
9701.519.
    (b) All files maintained under paragraph (a) of this section must be 
open to inspection and reproduction in accordance with 5 U.S.C. 552 and 
552a.

[[Page 1113]]

The HSLRB will establish rules in consultation with the Department for 
maintaining and making available for inspection sensitive information.



Sec.  9701.525  Regulations of the HSLRB.

    The Department may issue initial interim rules for the operation of 
the HSLRB and will consult with labor organizations granted national 
consultation rights on the rules. The HSLRB will prescribe and publish 
rules for its operation in the Federal Register.



Sec.  9701.526  Continuation of existing laws, recognitions, agreements, 
and procedures.

    (a) Except as otherwise provided by Sec.  9701.506, nothing 
contained in this subpart precludes the renewal or continuation of an 
exclusive recognition, certification of an exclusive representative, or 
an agreement that is otherwise consistent with law and the regulations 
in this part between the Department or a component thereof and an 
exclusive representative of its employees, which is entered into before 
the effective date of this subpart, as determined under Sec.  
9701.102(b).
    (b) Policies, regulations, and procedures established under, and 
decisions issued under Executive Orders 11491, 11616, 11636, 11787, and 
11838 or any other Executive order, as in effect on the effective date 
of this subpart (as determined under Sec.  9701.102(b)), will remain in 
full force and effect until revised or revoked by the President, or 
unless superseded by specific provisions of this subpart or by 
implementing directives or decisions issued pursuant to this subpart.



Sec.  9701.527  Savings provision.

    This subpart does not apply to grievances or other administrative 
proceedings already pending on the date of coverage of this subpart, as 
determined under Sec.  9701.102(b). Any remedy that applies after the 
date of coverage under any provision of this part and that is in 
conflict with applicable provisions of this part is not enforceable.



                        Subpart F_Adverse Actions

    Editorial Note: At 73 FR 58435, Oct. 7, 2008, the application of 
subpart F to part 9701 was rescinded.

                                 General



Sec.  9701.601  Purpose.

    This subpart contains regulations prescribing the requirements when 
employees are furloughed for 30 days or less, suspended, demoted, 
reduced in pay, or removed. DHS may issue implementing directives to 
carry out the provisions of this subpart.



Sec.  9701.602  Waivers.

    When a specified category of employees is covered by the adverse 
action provisions established under this subpart, 5 U.S.C. 7501 through 
7514 and 7531 through 7533 are waived with respect to that category of 
employees. The provisions in 5 U.S.C. 7521 and 7541 through 7543 are not 
waived.



Sec.  9701.603  Definitions.

    In this subpart:
    Adverse action means a furlough for 30 days or less, a suspension, a 
demotion, a reduction in pay, or a removal.
    Band means a work level or pay range within an occupational cluster.
    Competencies means the measurable or observable knowledge, skills, 
abilities, behaviors, and other characteristics required by a position.
    Current continuous service means a period of service immediately 
preceding an adverse action in the same or similar positions without any 
break in Federal civilian employment.
    Day means a calendar day.
    Demotion means a reduction in grade, a reduction to a lower band 
within the same occupational cluster, or a reduction to a lower band in 
a different occupational cluster under rules prescribed by DHS pursuant 
to Sec.  9701.355.
    Furlough means the placement of an employee in a temporary status 
without duties and pay because of lack of work or funds or other non-
disciplinary reasons.
    Grade means a level of work under a position classification or job 
grading system.

[[Page 1114]]

    Indefinite suspension means the placement of an employee in a 
temporary status without duties and pay pending investigation, inquiry, 
or further Department action. An indefinite suspension continues for an 
indeterminate period of time and usually ends with either the employee 
returning to duty or the completion of any subsequent administrative 
action.
    Initial service period (ISP) means the 1 to 2 years employees must 
serve after selection (on or after the date this subpart becomes 
applicable, as determined under Sec.  9701.102(b)) for a designated DHS 
position in the competitive service for the purpose of providing an 
employee the opportunity to demonstrate competencies in a specific 
occupation.
    Mandatory removal offense (MRO) means an offense that the Secretary 
determines, in his or her sole, exclusive, and unreviewable discretion, 
has a direct and substantial adverse impact on the Department's homeland 
security mission.
    Mandatory Removal Panel (MRP) means the three-person panel composed 
of officials appointed by the Secretary for fixed terms to decide 
appeals of removals based on a mandatory removal offense.
    Pay means the rate of basic pay fixed by law or administrative 
action for the position held by an employee before any deductions and 
exclusive of additional pay of any kind. For the purpose of this 
subpart, pay does not include locality-based comparability payments 
under 5 U.S.C. 5304, locality or special rate supplements under subpart 
C of this part, or other similar payments.
    Probationary period has the meaning given that term in 5 CFR 
315.801.
    Removal means the involuntary separation of an employee from the 
Department.
    Similar positions means positions in which the duties performed are 
similar in nature and character and require substantially the same or 
similar qualifications, so that the incumbent could be moved from one 
position to another without significant training or undue interruption 
to the work.
    Suspension means the temporary placement of an employee, for 
disciplinary reasons, in a nonduty/nonpay status.
    Trial period has the meaning given that term in 5 CFR 316.304.



Sec.  9701.604  Coverage.

    (a) Actions covered. This subpart covers furloughs of 30 days or 
less, suspensions, demotions, reductions in pay (including reductions in 
pay within a band), and removals.
    (b) Actions excluded. This subpart does not cover--
    (1) Any adverse action taken against an employee during a 
probationary, trial, or initial service period, except for an adverse 
action taken against a preference eligible employee in the competitive 
service who has completed the first year of an initial service period;
    (2) The demotion of a supervisor or manager under 5 U.S.C. 3321;
    (3) An action that terminates a temporary or term promotion and 
returns the employee to the position from which temporarily promoted, or 
to a different position of equivalent band and pay, if the employee was 
informed that the promotion was to be of limited duration;
    (4) A reduction-in-force action under 5 U.S.C. 3502;
    (5) An action under 5 U.S.C. 1215;
    (6) An action against an administrative law judge under 5 U.S.C. 
7521;
    (7) A voluntary action by an employee;
    (8) An action taken or directed by OPM based on suitability under 5 
CFR part 731;
    (9) Termination of appointment on the expiration date specified as a 
basic condition of employment at the time the appointment was made;
    (10) Cancellation of a promotion to a position not classified prior 
to the promotion;
    (11) Placement of an employee serving on an intermittent or seasonal 
basis in a temporary non-duty, non-pay status in accordance with 
conditions established at the time of appointment;
    (12) Reduction of an employee's rate of basic pay from a rate that 
is contrary to law or regulation;
    (13) An action taken under a provision of statute, other than one 
codified in title 5, U.S. Code, which excludes the action from 5 U.S.C. 
chapter 75 or this subpart;

[[Page 1115]]

    (14) A classification determination, including a classification 
determination under subpart B of this part; and
    (15) An action that entitles an employee to grade retention under 5 
CFR part 536 and an action to terminate this entitlement.
    (c) Employees covered. Subject to a determination by the Secretary 
or designee under Sec.  9701.102(b), this subpart applies to DHS 
employees, except as excluded by paragraph (d) of this section.
    (d) Employees excluded. This subpart does not apply to--
    (1) An employee in the competitive service who is serving a 
probationary, trial, or initial service period, except for a preference 
eligible employee in the competitive service who has completed the first 
year of an initial service period;
    (2) A preference eligible employee in the excepted service who has 
not completed 1 year of current continuous service in the same or 
similar positions in an Executive agency or in the United States Postal 
Service or Postal Rate Commission;
    (3) An employee in the excepted service (other than a preference 
eligible) who has not completed 2 years of current continuous service in 
the same or similar positions in an Executive agency under other than a 
temporary appointment of 2 years or less;
    (4) A non-preference eligible employee who is serving a time-limited 
appointment (including a term appointment) of 2 years or less;
    (5) Members of the Senior Executive Service;
    (6) Administrative law judges;
    (7) Employees who are terminated in accordance with terms specified 
as conditions of employment at the time the appointment was made;
    (8) Employees whose appointments are made by and with the advice and 
consent of the Senate;
    (9) Employees whose positions have been determined to be of a 
confidential, policy-determining, policy-making, or policy-advocating 
character by--
    (i) The President, for a position that the President has excepted 
from the competitive service;
    (ii) OPM, for a position that OPM has excepted from the competitive 
service; or
    (iii) The President or the Secretary for a position excepted from 
the competitive service by statute;
    (10) An employee whose appointment is made by the President;
    (11) An employee who is receiving an annuity from the Civil Service 
Retirement and Disability Fund or the Foreign Service Retirement and 
Disability Fund based on the service of such employee;
    (12) An employee who is an alien or non-citizen occupying a position 
outside the United States, as described in 5 U.S.C. 5102(c)(11);
    (13) Members of the Homeland Security Labor Relations Board or the 
Mandatory Removal Panel;
    (14) Employees against whom an adverse personnel action is taken or 
imposed under any statute or regulation other than this subpart (e.g., 
Transportation Security Administration employees); and
    (15) Employees appointed and serving under a Schedule B excepted 
service appointment subject to conversion to career status pursuant to 
Executive Order 11203.



Sec.  9701.605  Initial service period.

    (a) DHS may establish an initial service period of 1 to 2 years for 
certain designated occupations in order for employees in such 
occupations to demonstrate appropriate competencies. DHS will establish 
standard policies for determining the applicability and the length of 
the ISP for specific occupations.
    (b) Employees must complete an ISP after selection for a designated 
DHS position in the competitive service before obtaining coverage under 
this subpart. All relevant prior Federal civilian service (including 
non-appropriated fund service), as determined by appropriate standards 
established by DHS, counts toward completion of this requirement.
    (c) An employee who is removed during a probationary, trial, or 
initial service period must be removed in accordance with 5 CFR 315.804 
or 315.805,

[[Page 1116]]

except for a preference eligible employee in the competitive service who 
has completed the first year of an ISP.

  Requirements for Furlough of 30 Days or Less, Suspension, Demotion, 
                      Reduction in Pay, or Removal



Sec.  9701.606  Standard for action.

    The Department may take an adverse action under this subpart only 
for such cause as will promote the efficiency of the service. The 
standards for mandatory removal offenses and actions taken under the 
national security provisions are set forth in Sec. Sec.  9701.607 and 
9701.613, respectively.



Sec.  9701.607  Mandatory removal offenses.

    (a) The Secretary has the sole, exclusive, and unreviewable 
discretion to identify offenses that have a direct and substantial 
adverse impact on the Department's homeland security mission. Such 
offenses will be identified in advance as part of the Department's 
implementing directives, publicized via notice in the Federal Register, 
and made known to all employees on an annual basis.
    (b) When a mandatory removal action is proposed under this section, 
employees will have the right to advance notice, an opportunity to 
respond, a written decision, and a review by the Mandatory Removal Panel 
as set forth in subpart G of this part.
    (c) Prior to the issuance of a notice to the employee in question, 
the Secretary or designee will review and approve a proposed notice of 
removal on the grounds that the employee has committed a mandatory 
removal offense.
    (d) The Secretary has the sole, exclusive, and unreviewable 
discretion to mitigate the removal penalty.
    (e) Nothing in this section limits the discretion of the Department 
or any component thereof to remove employees for offenses other than 
those identified by the Secretary as mandatory removal offenses.
    (f) Nothing in this subpart limits the discretion of the Department 
or any component thereof to remove an employee based on the revocation 
of that employee's security clearance.



Sec.  9701.608  Procedures.

    An employee against whom an adverse action is proposed is entitled 
to the following:
    (a) A proposal notice under Sec.  9701.609;
    (b) An opportunity to reply under Sec.  9701.610; and
    (c) A decision notice under Sec.  9701.611.



Sec.  9701.609  Proposal notice.

    (a) Notice period. The Department must provide at least 15 days 
advance written notice of a proposed adverse action. However, if there 
is reasonable cause to believe the employee has committed a crime for 
which a sentence of imprisonment may be imposed, the Department must 
provide at least 5 days advance written notice.
    (b) Contents of notice. (1) The proposal notice must inform the 
employee of the factual basis for the proposed action in sufficient 
detail to permit the employee to reply to the notice, and inform the 
employee of his or her right to review the Department's evidence 
supporting the proposed action. The Department may not use evidence that 
cannot be disclosed to the employee, his or her representative, or 
designated physician pursuant to 5 CFR 297.204.
    (2) When some but not all employees in a given competitive level are 
being furloughed, the proposal notice must state the basis for selecting 
a particular employee for furlough, as well as the reasons for the 
furlough. The notice is not necessary for furlough without pay due to 
unforeseeable circumstances, such as sudden breakdowns in equipment, 
acts of God, or sudden emergencies requiring immediate curtailment of 
activities.
    (c) Duty status during notice period. An employee will remain in a 
duty status in his or her regular position during the notice period. 
However, when the Department determines that the employee's continued 
presence in the workplace during the notice period may pose a threat to 
the employee or others, result in loss of or damage to Government 
property, or otherwise jeopardize legitimate Government interests, the 
Department may elect one

[[Page 1117]]

or a combination of the following alternatives:
    (1) Assign the employee to duties where the Department determines 
the employee is no longer a threat to safety, the Department's mission, 
or Government property;
    (2) Allow the employee to take leave, or place him or her in an 
appropriate leave status (annual leave, sick leave, or leave without 
pay) or absence without leave if the employee has absented himself or 
herself from the worksite without approved leave; or
    (3) Place the employee in a paid, non-duty status for such time as 
is necessary to effect the action.



Sec.  9701.610  Opportunity to reply.

    (a) The Department must give employees at least 10 days, which must 
run concurrently with the notice period, to reply orally and/or in 
writing to a notice of proposed adverse action. However, if there is 
reasonable cause to believe the employee has committed a crime for which 
a sentence of imprisonment may be imposed, the Department must give the 
employee at least 5 days, which must run concurrently with the notice 
period, to reply orally and/or in writing.
    (b) The opportunity to reply orally does not include the right to a 
formal hearing with examination of witnesses.
    (c) During the opportunity to reply, the Department must give the 
employee a reasonable amount of official time to review the Department's 
supporting evidence, and to furnish affidavits and other documentary 
evidence, if the employee is otherwise in an active duty status.
    (d) The Department must designate an official to receive the 
employee's written and/or oral response. The official must have 
authority to make or recommend a final decision on the proposed adverse 
action.
    (e) The employee may be represented by an attorney or other 
representative of the employee's choice and at the employee's expense, 
subject to paragraph (f) of this section. The employee must provide the 
Department with a written designation of his or her representative.
    (f) The Department may disallow as an employee's representative--
    (1) An individual whose activities as representative would cause a 
conflict between the interest or position of the representative and that 
of the Department,
    (2) An employee of the Department whose release from his or her 
official position would give rise to unreasonable costs or whose work 
assignments preclude his or her release; or
    (3) An individual whose activities as representative could 
compromise security.
    (g)(1) An employee who wishes the Department to consider any medical 
condition that may be relevant to the proposed adverse action must 
provide medical documentation, as that term is defined at 5 CFR 339.104, 
during the opportunity to reply, whenever possible.
    (2) When considering an employee's medical documentation, the 
Department may require or offer a medical examination pursuant to 5 CFR 
part 339, subpart C.
    (3) When considering an employee's medical condition, the Department 
is not required to withdraw or delay a proposed adverse action. However, 
the Department must--
    (i) Allow the employee to provide medical documentation during the 
opportunity to reply;
    (ii) Comply with 29 CFR 1614.203 and relevant Equal Employment 
Opportunity Commission rules; and
    (iii) Comply with 5 CFR 831.1205 when issuing a decision to remove.



Sec.  9701.611  Decision notice.

    (a) In arriving at its decision on a proposed adverse action, the 
Department may not consider any reasons for the action other than those 
specified in the proposal notice.
    (b) The Department must consider any response from the employee and 
the employee's representative, if the response is provided to the 
official designated under Sec.  9701.610(d) during the opportunity to 
reply, and any medical documentation furnished under Sec.  9701.610(g).
    (c) The decision notice must specify in writing the reasons for the 
decision and advise the employee of any appeal or grievance rights under 
subparts E or G of this part.

[[Page 1118]]

    (d) The Department must deliver the notice to the employee on or 
before the effective date of the action.



Sec.  9701.612  Departmental record.

    (a) Document retention. The Department must keep a record of all 
relevant documentation concerning the action for a period of time 
pursuant to the General Records Schedule and the Guide to Personnel 
Recordkeeping. The record must include the following:
    (1) A copy of the proposal notice;
    (2) The employee's written response, if any, to the proposal;
    (3) A summary of the employee's oral response, if any;
    (4) A copy of the decision notice; and
    (5) Any supporting material that is directly relevant and on which 
the action was substantially based.
    (b) Access to the record. The Department must make the record 
available for review by the employee and furnish a copy of the record 
upon the employee's request or the request of the Merit Systems 
Protection Board or the MRP.

                            National Security



Sec.  9701.613  Suspension and removal.

    (a) Notwithstanding other provisions of law or regulation, the 
Secretary may suspend an employee without pay when she or he considers 
suspension in the interests of national security. To the extent that the 
Secretary determines that the interests of national security permit, the 
suspended employee must be notified of the reasons for the suspension. 
Within 30 days after the notification, the suspended employee is 
entitled to submit to the official designated by the Secretary 
statements or affidavits to show why he or she should be restored to 
duty.
    (b) Subject to paragraph (c) of this section, the Secretary may 
remove an employee suspended under this section when, after 
investigation and review as the Secretary considers necessary, the 
Secretary determines that removal is necessary or advisable in the 
interests of national security. The determination of the Secretary is 
final.
    (c) An employee suspended under this section who has a permanent or 
indefinite appointment, has completed his or her initial service period, 
probationary period, or trial period, and is a citizen of the United 
States is entitled, after suspension and before removal, to--
    (1) A written statement of the charges against the employee within 
30 days after suspension, which may be amended within 30 days 
thereafter, and which must be stated as specifically as security 
considerations permit;
    (2) An opportunity within 30 days thereafter, plus an additional 30 
days if the charges are amended, to answer the charges and submit 
affidavits;
    (3) A hearing, at the request of the employee, by a Department 
authority duly constituted for this purpose;
    (4) A review of his or her case by the Secretary or designee, before 
a decision adverse to the employee is made final; and
    (5) A written decision from the Secretary.

                            Savings Provision



Sec.  9701.614  Savings provision.

    This subpart does not apply to adverse actions proposed prior to the 
date of an affected employee's coverage under this subpart.



                            Subpart G_Appeals

    Editorial Note: At 73 FR 58435, Oct. 7, 2008, the application of 
subpart G to part 9701 was rescinded.



Sec.  9701.701  Purpose.

    This subpart contains the regulations implementing the provisions of 
5 U.S.C. 9701(a) through (c) and (f) concerning the Department's appeals 
system for certain adverse actions covered under subpart F of this part. 
These provisions require that the new appeals regulations provide 
Department employees fair treatment, are consistent with the protections 
of due process and, to the maximum extent practicable, provide for the 
expeditious handling of appeals.



Sec.  9701.702  Waivers.

    When a specified category of employees is covered by an appeals 
system established under this subpart, the provisions of 5 U.S.C. 7701 
are waived with respect to that category of employees to the extent they 
are inconsistent with the provisions of this subpart. The

[[Page 1119]]

provisions of 5 U.S.C. 7702 are modified as provided in Sec.  9701.709 
to use ``MSPB or MRP'' wherever the terms ``Merit Systems Protection 
Board'' or ``Board'' occur. The appellate procedures specified herein 
supersede those of MSPB to the extent MSPB regulations are inconsistent 
with this subpart. MSPB must follow the provisions in this subpart until 
conforming regulations are issued by MSPB.



Sec.  9701.703  Definitions.

    In this subpart:
    Adjudicating official means an administrative law judge, 
administrative judge, or other employee designated by MSPB to decide an 
appeal.
    Day means calendar day.
    Harmful error means error by the Department in the application of 
its procedures that is likely to have caused it to reach a conclusion 
different from the one it would have reached in the absence or cure of 
the error. The burden is on the appellant to show that the error was 
harmful, i.e., that it caused substantial harm or prejudice to his or 
her rights.
    Mandatory removal offense (MRO) means an offense that the Secretary 
determines in his or her sole, exclusive, and unreviewable discretion 
has a direct and substantial adverse impact on the Department's homeland 
security mission.
    Mandatory Removal Panel (MRP) means the three-person panel composed 
of officials appointed by the Secretary for fixed terms to decide 
appeals of removals based on a mandatory removal offense.
    MSPB means the Merit Systems Protection Board.
    Petition for review means a request for review of an initial 
decision of an adjudicating official.
    Preponderance of the evidence means the degree of relevant evidence 
that a reasonable person, considering the record as a whole, would 
accept as sufficient to find that a contested fact is more likely to be 
true than untrue.



Sec.  9701.704  Coverage.

    (a) Subject to a determination by the Secretary or designee under 
Sec.  9701.102(b), this subpart applies to employees who appeal 
furloughs of 30 days or less, demotions, reductions in pay, suspensions 
of 15 days or more, or removals, provided such employees are covered by 
Sec.  9701.604.
    (b) Appeals of suspensions shorter than 15 days and other lesser 
disciplinary measures are not covered under this subpart but may be 
grieved through a negotiated grievance procedure or an administrative 
grievance procedure, whichever is applicable.
    (c) The appeal rights in 5 CFR 315.806 apply to the removal of an 
employee while serving a probationary, trial, or initial service period, 
except for a preference eligible employee in the competitive service who 
has completed the first year of an initial service period.
    (d) Actions taken under Sec.  9701.613 are not appealable to MSPB.



Sec.  9701.705  Alternative dispute resolution.

    The Department and OPM recognize the value of using alternative 
dispute resolution methods such as mediation, an ombudsman, or interest-
based negotiation to address employee-employer disputes arising in the 
workplace, including those which may involve disciplinary actions. Such 
methods can result in more efficient and more effective outcomes than 
traditional, adversarial methods of dispute resolution. The Department 
will use alternative dispute resolution methods where appropriate. Such 
methods will be subject to collective bargaining to the extent permitted 
by subpart E of this part.



Sec.  9701.706  MSPB appellate procedures.

    (a) A covered Department employee may appeal an adverse action 
identified under Sec.  9701.704(a) to MSPB. Such an employee has a right 
to be represented by an attorney or other representative, and to a 
hearing if material facts are in dispute. However, separate procedures 
apply when the action is taken because of a mandatory removal offense or 
is in the interest of national security. (See Sec. Sec.  9701.707 and 
9701.613, respectively.)
    (b) MSPB may decide any case appealed to it or may refer the case to 
an administrative law judge appointed under 5 U.S.C. 3105 or other 
employee of MSPB designated by MSPB to decide such cases. MSPB or an 
adjudicating

[[Page 1120]]

official must make a decision at the close of the review and provide a 
copy of the decision to each party to the appeal and to OPM.
    (c)(1) If an employee is the prevailing party in an appeal under 
this section, the employee must be granted the relief provided in the 
decision upon issuance of the decision, subject to paragraph (c)(3) of 
this section, and such relief remains in effect pending the outcome of 
any petition for review unless--
    (i) An adjudicating official determines that the granting of such 
relief is not appropriate; or
    (ii) The relief granted in the decision provides that the employee 
will return or be present at the place of employment pending the outcome 
of any petition for review, and the Department, subject to paragraph 
(c)(2) of this section, determines in its sole, exclusive, and 
unreviewable discretion, that the return or presence of the employee is 
unduly disruptive to the work environment.
    (2) If the Department makes a determination under paragraph 
(c)(1)(ii) of this section that prevents the return or presence of an 
employee at the place of employment, such employee must receive pay, 
compensation, and all other benefits as terms and conditions of 
employment pending the outcome of any petition for review.
    (3) Nothing in the provisions of this section may be construed to 
require that any award of back pay or attorney fees be paid before the 
decision is final.
    (d) The decision of the Department must be sustained under paragraph 
(b) of this section if it is supported by a preponderance of the 
evidence, unless the employee shows by a preponderance of the evidence--
    (1) Harmful error in the application of Department procedures in 
arriving at the decision;
    (2) That the decision was based on any prohibited personnel practice 
described in 5 U.S.C. 2302(b); or
    (3) That the decision was not in accordance with law.
    (e) The Director of OPM may, as a matter of right at any time in the 
proceeding, intervene or otherwise participate in any proceeding under 
this section in any case in which the Director believes that an 
erroneous decision will have a substantial impact on a civil service 
law, rule, regulation, or policy directive.
    (f) Except as provided in Sec.  9701.709, any decision under 
paragraph (b) of this section is final unless a party to the appeal or 
the Director of OPM petitions MSPB for review within 30 days after 
receipt of the decision or MSPB reopens and reconsiders a case on its 
own motion. The Director may petition MSPB for review only if he or she 
believes the decision is erroneous and will have a substantial impact on 
a civil service law, rule, regulation, or policy directive. MSPB, for 
good cause shown, may extend the filing period.
    (g) If MSPB or an adjudicating official is of the opinion that 
consolidation or joinder could result in more expeditious processing of 
appeals and would not adversely affect any party, MSPB or an 
adjudicating official may--
    (1) Consolidate appeals filed by two or more appellants; or
    (2) Join two or more appeals filed by the same appellant and hear 
and decide them concurrently.
    (h)(1) Except as provided in paragraph (h)(2) of this section or as 
otherwise provided by law, MSPB or an adjudicating official may require 
payment by the Department of reasonable attorney fees incurred by an 
employee if the employee is the prevailing party and MSPB or an 
adjudicating official determines that payment by the Department is 
warranted in the interest of justice, including any case in which a 
prohibited personnel practice was engaged in by the Department or any 
case in which the Department's action was clearly without merit.
    (2) If the employee is the prevailing party and the decision is 
based on a finding of discrimination prohibited under 5 U.S.C. 
2302(b)(1), the payment of reasonable attorney fees must be in 
accordance with the standards prescribed in section 706(k) of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e-5(k)).
    (i)(1) MSPB or an adjudicating official may not require settlement 
discussions in connection with any appealed action under this section. 
If either party decides that settlement is not desirable, the matter 
will proceed to adjudication.

[[Page 1121]]

    (2) Where the parties agree to engage in settlement discussions 
before MSPB or an adjudicating official, these discussions will be 
conducted by an official specifically designated by MSPB for that sole 
purpose. Nothing prohibits the parties from engaging in settlement 
discussions on their own.
    (j) If an employee has been removed under subpart F of this part, 
neither the employee's status under any retirement system established by 
Federal statute nor any election made by the employee under any such 
system will affect the employee's appeal rights.
    (k) The following provisions modify MSPB's appellate procedures 
applicable to appeals under this subpart:
    (1) All appeals, including class appeals, will be filed no later 
than 20 days after the effective date of the action being appealed, or 
no later than 20 days after the date of service of the Department's 
decision, whichever is later.
    (2) Either party may file a motion for representative 
disqualification at any time during the proceedings.
    (3) The parties may seek discovery regarding any matter that is 
relevant to any of their claims or defenses. However, by motion, either 
party may seek to limit such discovery because the burden or expense of 
providing the material outweighs its benefit, or because the material 
sought is privileged, not relevant, unreasonably cumulative or 
duplicative, or can be secured from some other source that is more 
convenient, less burdensome, or less expensive.
    (i) Prior to filing a motion to limit discovery, the parties must 
confer and attempt to resolve any pending objection(s).
    (ii) Neither party may submit more than one set of interrogatories, 
one set of requests for production of documents, and one set of requests 
for admissions. The number of interrogatories or requests for production 
or admissions may not exceed 25 per pleading, including subparts; in 
addition, neither party may conduct/compel more than 2 depositions.
    (iii) Either party may file a motion requesting additional 
discovery. Such motion may be granted only if the party has shown 
necessity and good cause to warrant such additional discovery.
    (4) Requests for case suspensions must be submitted jointly.
    (5) When there are no material facts in dispute, the adjudicating 
official must render summary judgment on the law without a hearing. 
However, when material facts are in dispute and a hearing is held, a 
transcript must be kept.
    (6) Given the Department's need to maintain an exceptionally high 
degree of order and discipline in the workplace, an arbitrator, 
adjudicating official, or MSPB may not modify the penalty imposed by the 
Department unless such penalty is so disproportionate to the basis for 
the action as to be wholly without justification. In cases of multiple 
charges, the third party's determination in this regard is based on the 
justification for the penalty as it relates to the sustained charge(s). 
When a penalty is mitigated, the maximum justifiable penalty must be 
applied.
    (7) An initial decision must be made no later than 90 days after the 
date on which the appeal is filed. If that initial decision is appealed 
to MSPB, MSPB must render its decision no later than 90 days after the 
close of the record before MSPB on petition for review.
    (8) If the Director seeks reconsideration of a final MSPB order, 
MSPB must render its decision no later than 60 days after receipt of the 
opposition to OPM's petition in support of such reconsideration. MSPB 
must state the reasons for its decision so that the Director can 
determine whether to seek judicial review and to facilitate expeditious 
judicial review.
    (9) MSPB, in conjunction with the Department and OPM, will develop 
and issue voluntary expedited appeals procedures for Department cases.
    (l) Failure of MSPB to meet the deadlines imposed by paragraphs 
(k)(7) and (k)(8) of this section in a case will not prejudice any party 
to the case and will not form the basis for any legal action by any 
party.
    (m) Except as otherwise provided by 5 U.S.C. 7702 with respect to 
cases involving allegations of discrimination, judicial review of any 
final MSPB order or decision is as prescribed under 5 U.S.C. 7703.

[[Page 1122]]



Sec.  9701.707  Appeals of mandatory removal actions.

    (a) General. Appeals of mandatory removal actions are governed by 
procedures set forth in this section. An employee may appeal such 
actions to the Mandatory Removal Panel (MRP) established under Sec.  
9701.708.
    (b) Procedures. (1) The MRP will establish procedures for the fair, 
impartial, and expeditious assignment and disposition of cases, 
consistent with the requirements set forth in Sec.  9701.706(k), as 
applicable, and for such other matters as may be necessary to ensure the 
operation of the MRP.
    (2) The MRP will conduct a hearing, for which a transcript will be 
kept, to resolve any factual disputes and other relevant matters. All 
members will hear a particular appeal and will decide it based on a 
majority vote of the members. If only two members are serving, the vote 
of the Chair will be dispositive in the event of a tie.
    (3) The appellant has the right to be represented by an attorney or 
other representative.
    (4) The only action available to the MRP is to sustain or overturn a 
mandatory removal. The MRP does not have authority to mitigate the 
penalty. Only the Secretary may mitigate the penalty in these cases 
after the MRP has rendered its decision.
    (5) The decision of the Department must be sustained if it is 
supported by a preponderance of the evidence, unless the employee shows 
by a preponderance of the evidence--
    (i) Harmful error in the application of Department procedures in 
arriving at the decision;
    (ii) That the decision was based on any prohibited personnel 
practice described in 5 U.S.C. 2302(b); or
    (iii) That the decision was not in accordance with law.
    (6)(i) Except as provided in paragraph (b)(6)(ii) of this section or 
as otherwise provided by law, the MRP may require payment by the 
Department of reasonable attorney fees incurred by an employee if the 
employee is the prevailing party and the Panel reviewing the initial 
appeal determines that payment by the Department is warranted in the 
interest of justice, including any case in which a prohibited personnel 
practice was engaged in by the Department or any case in which the 
Department's action was clearly without merit.
    (ii) If the employee is the prevailing party and the decision is 
based on a finding of discrimination prohibited under 5 U.S.C. 
2302(b)(1), the payment of reasonable attorney fees must be in 
accordance with the standards prescribed in Sec.  706(k) of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e-5(k)).
    (7) The MRP must issue a written decision (including dissenting 
opinions, where appropriate) in each case and serve each party and OPM 
with a copy. These decisions are final and binding.
    (8) Failure of the MRP to meet applicable deadlines imposed under 
Sec.  9701.706(k) in a case will not prejudice any party to the case and 
will not form the basis for any legal action by any party.
    (c) MSPB review. (1) In order to obtain judicial review of an MRP 
decision, an employee, the Department, or OPM must request a review of 
the record of an MRP decision by MSPB by filing such a request in 
writing within 15 days after the issuance of the decision. Within 15 
days after MSPB's receipt of the request for a review of the record, any 
response or OPM intervention must be filed. A party, or OPM, may each 
submit, and MSPB may grant for good cause shown, a request for a single 
extension of time not to exceed a maximum of 15 additional days. MSPB 
will establish, in conjunction with the MRP, standards for the 
sufficiency of the record and other procedures, including notice to the 
parties and OPM. MSPB must accept the findings of fact and 
interpretations of this part made by the MRP and sustain the MRP's 
decision unless the employee shows that the MRP's decision was--
    (i) Arbitrary, capricious, an abuse of discretion, or otherwise not 
in accordance with law;
    (ii) Caused by harmful error in the application of the MRP's 
procedures in arriving at such decision; or
    (iii) Unsupported by substantial evidence.
    (2) MSPB must complete its review of the record and issue a final 
decision within 30 days after receiving the party's timely response to 
such request for review or OPM's intervention brief,

[[Page 1123]]

whichever is filed later. This 30-day time limit is mandatory, except 
that MSPB may extend its time for review by a maximum of 15 additional 
days if it determines that--
    (i) The case is unusually complex; or
    (ii) An extension is necessary to prevent any prejudice to the 
parties that would otherwise result.
    (3) No extension beyond that provided by paragraph (c)(2) of this 
section is permitted.
    (4) If MSPB does not issue a final decision within the mandatory 
time limit established by paragraph (c) of this section, MSPB will be 
considered to have denied the request for review of the MRP's decision, 
which will constitute a final decision of MSPB and is subject to 
judicial review in accordance with 5 U.S.C. 7703.
    (d) Subsequent action. (1) If either the MRP or MSPB sustains an 
employee's appeal based on a finding that the employee did not commit an 
MRO, the Department is not precluded from subsequently proposing an 
adverse action (other than an MRO) based on the same record evidence. 
Such a proposal must be issued--
    (i) In accordance with applicable law and regulation, including the 
procedures set forth in Sec.  9701.609; and
    (ii) Normally within 15 days after the date of MSPB's decision, 
unless the Department establishes good cause for exceeding this time 
limit.
    (2) Nothing in this section precludes the Department from taking a 
subsequent action against an employee based, in part, on additional 
evidence that was not part of the record in the initial proceeding 
before the MRP.
    (e) Judicial review. Except as otherwise provided by 5 U.S.C. 7702 
with respect to cases involving allegations of discrimination, judicial 
review of any final MSPB order or decision on an MRO is as prescribed 
under 5 U.S.C. 7703.
    (f) OPM intervention. (1) The Director may, as a matter of right at 
any time in the proceeding before the MRP or MSPB, intervene or 
otherwise participate in any proceeding under this section in any case 
in which the Director believes that an erroneous decision will have a 
substantial impact on a civil service law, rule, regulation, or policy 
directive.
    (2) Except as provided in Sec.  9701.709, any decision under 
paragraph (c) of this section is final unless the Director petitions 
MSPB for review within 30 days after receipt of the decision. The 
Director may petition MSPB for review only if he or she believes the 
decision is erroneous and will have a substantial impact on a civil 
service law, rule, regulation, or policy directive. MSPB, for good cause 
shown, may extend the filing period.
    (g) Appeal rights of retirees. If an employee has been removed under 
subpart F of this part, neither the employee's status under any 
retirement system established by Federal statute nor any election made 
by the employee under any such system will affect the employee's appeal 
rights.



Sec.  9701.708  Mandatory Removal Panel.

    (a) Composition. (1) The Mandatory Review Panel is a standing panel 
composed of three members who will be appointed by the Secretary for 
terms of 3 years, except that the appointments of the initial MRP 
members will be for terms of 2, 3, and 4 years, respectively. The 
Secretary may extend the term of any member beyond 3 years when 
necessary to provide for an orderly transition and/or appoint the member 
for an additional term.
    (2) Members of the MRP must be independent, distinguished citizens 
of the United States who are well known for their integrity and 
impartiality. Members must have expertise in either labor or employee 
relations or law enforcement/homeland security matters. At least one 
member of the Board must have experience in labor relations. Members may 
be removed by the Secretary on the same grounds as an MSPB member.
    (3) An individual chosen to fill a vacancy on the MRP will be 
appointed for the unexpired term of the member who is replaced.
    (b) Appointment of the Chair. The Secretary, at his or her sole and 
exclusive discretion, will appoint one member to serve as Chair of the 
MRP.

[[Page 1124]]

    (c) Appointment procedures for non-Chair MRP members. (1) The 
appointments of the two non-Chair MRP members will be made by the 
Secretary after he or she considers any lists of nominees submitted by 
labor organizations that represent employees in the Department of 
Homeland Security.
    (2) The submission of lists of recommended nominees by labor 
organizations must be in accordance with timelines and requirements set 
forth by the Secretary, who may provide for additional consultation in 
order to obtain further information about a recommended nominee. The 
ability of the Secretary to appoint MRP members may not be delayed or 
otherwise affected by the failure of any labor organization to provide a 
list of nominees that meets the timeframe and requirements established 
by the Secretary.



Sec.  9701.709  Actions involving discrimination.

    Section 7702 of title 5, U.S. Code, is modified to read ``MSPB or 
MRP'' wherever the terms ``Merit Systems Protection Board'' or ``Board'' 
are used.



Sec.  9701.710  Savings provision.

    This subpart does not apply to adverse actions proposed prior to the 
date of an affected employee's coverage under this subpart.

                       PARTS 9702	9799 [RESERVED]

[[Page 1125]]



   CHAPTER XCVIII--COUNCIL OF THE INSPECTORS GENERAL ON INTEGRITY AND 
                               EFFICIENCY




  --------------------------------------------------------------------
Part                                                                Page
9800            Freedom of Information Act regulations......        1127
9801            Privacy Act regulations.....................        1138
9802-9899

 [Reserved]

[[Page 1127]]



PART 9800_FREEDOM OF INFORMATION ACT REGULATIONS--Table of Contents



Sec.
9800.101 General provisions.
9800.102 Requirements for making FOIA requests.
9800.103 Consultations, referrals, and coordination.
9800.104 Timing of responses to requests.
9800.105 Responses to requests.
9800.106 Confidential commercial information.
9800.107 Administrative appeals.
9800.108 Preservation of records.
9800.109 Fees.
9800.110 Public reading room.
9800.111 Other rights and services.

    Authority: Section 11 of the Inspector General Act of 1978, as 
amended, 5 U.S.C. app.; Section 3 of the Inspector General Empowerment 
Act of 2016, Pub. L. 114-317, 130 Stat. 1595; 5 U.S.C. 301, 552, 552a; 
31 U.S.C. 9701.

    Source: 83 FR 49770, Oct. 3, 2018, unless otherwise noted.



Sec.  9800.101  General provisions.

    (a) In general. This part contains the rules that the Council of the 
Inspectors General on Integrity and Efficiency (CIGIE) follows in 
processing requests for records under the Freedom of Information Act 
(FOIA), 5 U.S.C. 552. These rules should be read in conjunction with the 
text of FOIA and the Uniform Freedom of Information Fee Schedule and 
Guidelines published by the Office of Management and Budget (OMB 
Guidelines). Requests made by individuals for records about themselves 
under the Privacy Act of 1974, 5 U.S.C. 552a, are processed under part 
9801 as well as under this part.
    (b) Centralized system. CIGIE has a centralized system for 
processing FOIA requests, with one office receiving and coordinating the 
processing of all FOIA requests made to CIGIE.
    (c) Authority to grant or deny requests. The Executive Director of 
CIGIE, or designee, is authorized to grant or deny any requests for 
records that are maintained by CIGIE. For purposes of any request for 
records maintained by the CIGIE Integrity Committee (IC) established 
under section 11(d) of the Inspector General Act of 1978, as amended, 5 
U.S.C. app. (Inspector General Act), the designees are the IC 
Chairperson and IC Vice Chairperson.



Sec.  9800.102  Requirements for making FOIA requests.

    (a) Requests generally. (1) A request for CIGIE records under FOIA 
must be made in writing. The request must be sent by:
    (i) Regular mail addressed to: FOIA Officer, Council of the 
Inspectors General on Integrity and Efficiency, 1717 H Street NW, Suite 
825, Washington, DC 20006; or
    (ii) By fax sent to the FOIA Officer at (202) 254-0162; or
    (iii) By email to [email protected].
    (2) For the quickest handling, both the request letter and envelope 
or any fax cover sheet or email subject line should be clearly marked 
``FOIA Request.'' Whether sent by mail, fax, email, or other prescribed 
electronic method, a FOIA request will not be considered to have been 
received by CIGIE until it reaches the FOIA office.
    (3) A requester who is making a request for records about himself or 
herself, as a parent or guardian of a minor, or as the guardian of 
someone determined by a court to be incompetent, must comply with the 
verification of identity provisions set forth in part 9801.
    (4) Where a request for records pertains to another individual, a 
requester may receive greater access by submitting either a notarized 
authorization signed by that individual or a declaration made in 
compliance with the requirements set forth in 28 U.S.C. 1746 by that 
individual authorizing disclosure of the records to the requester, or by 
submitting proof that the individual is deceased (e.g., a copy of a 
death certificate or an obituary). As an exercise of administrative 
discretion, CIGIE can require a requester to supply additional 
information if necessary to verify that a particular individual has 
consented to disclosure.
    (b) Description of records sought. Requesters must describe the 
records sought in sufficient detail to enable CIGIE personnel to locate 
them with a reasonable amount of effort. To the extent possible, 
requesters should include specific information that may assist

[[Page 1128]]

CIGIE in identifying the requested records, such as the date, title or 
name, author, recipient, subject matter of the record, case number, file 
designation, or reference number. In general, requesters should include 
as much detail as possible about the specific records or the types of 
records that they are seeking. Before making their requests, requesters 
may contact CIGIE's FOIA Public Liaison to discuss the records they are 
seeking and to receive assistance in describing the records. If after 
receiving a request CIGIE determines that it does not reasonably 
describe the records sought, CIGIE will inform the requester what 
additional information is needed to perfect the request or why the 
request is otherwise insufficient. CIGIE will toll the processing of the 
request when it notifies the requester that additional information is 
needed or that the request is otherwise insufficient. CIGIE may toll one 
time for this purpose. Requesters who are attempting to reformulate or 
modify such a request may discuss their request with CIGIE's FOIA Public 
Liaison. If the requester does not provide the additional information 
within 30 days, the request will be closed.
    (c) Preferred format. Requests may specify the preferred form or 
format (including electronic formats) for the records sought. CIGIE will 
accommodate the request if the record is readily reproducible in that 
form or format.
    (d) Requester contact information. Requesters must provide contact 
information, such as a telephone number, email address, and/or mailing 
address, to assist CIGIE in communicating with requester and providing 
released records.



Sec.  9800.103  Consultations, referrals, and coordination.

    (a) In general. When reviewing records located by CIGIE in response 
to a request, CIGIE will determine whether another agency of the Federal 
Government is better able to determine whether the record is exempt from 
disclosure under FOIA. As to any such record, CIGIE will proceed in one 
of the following ways:
    (1) Consultation. When records originated with CIGIE, but contain 
within them information of interest to another agency or office of the 
Federal Government, CIGIE will typically consult with that other agency 
prior to making a release determination.
    (2) Referral. (i) When CIGIE believes that a different agency of the 
Federal Government is best able to determine whether to disclose the 
record, CIGIE typically will refer the responsibility for responding to 
the request regarding that record to that agency. Ordinarily, the agency 
that originated the record will be presumed to be best able to make the 
disclosure determination. However, if CIGIE and the originating agency 
jointly agree that the former is in the best position to respond 
regarding the record, then the record may be handled as a consultation.
    (ii) Whenever CIGIE refers any part of the responsibility for 
responding to a request to another agency, it will document the 
referral, maintain a copy of the record that it refers, and notify the 
requester of the referral and inform the requester of the name(s) of the 
agency to which the record was referred, including that agency's FOIA 
contact information.
    (3) Coordination. The standard referral procedure is not appropriate 
where disclosure of the identity of the agency to which the referral 
would be made could harm an interest protected by an applicable 
exemption, such as the exemptions that protect personal privacy or 
national security interests. For example, if CIGIE, in responding to a 
request for records on a living third party, locates within its files 
records originating with a law enforcement agency, and if the existence 
of that law enforcement interest in the third party was not publicly 
known, then to disclose that law enforcement interest could cause an 
unwarranted invasion of the personal privacy of the third party. 
Similarly, if CIGIE locates within its files material originating with 
an Intelligence Community agency, and the involvement of that agency in 
the matter is classified and not publicly acknowledged, then to disclose 
or give attribution to the involvement of that Intelligence Community 
agency could cause national security harms. In such instances, to avoid 
harm to an interest protected by an applicable exemption,

[[Page 1129]]

CIGIE will coordinate with the originating agency to seek its views on 
the disclosability of the record. The release determination for the 
record that is the subject of the coordination will then usually be 
conveyed to the requester by CIGIE.
    (b) Timing of responses to received consultations and referrals. All 
consultations and referrals received by CIGIE will be handled according 
to the date that the first agency received the perfected FOIA request.
    (c) Agreements regarding consultations and referrals. CIGIE may 
establish agreements with other agencies to eliminate the need for 
consultations or referrals with respect to particular types of records.
    (d) Classified information. On receipt of any request involving 
classified information, CIGIE must determine whether the information is 
currently and properly classified in accordance with applicable 
classification rules. Whenever a request involves a record containing 
information that has been classified or may be appropriate for 
classification by another agency under any applicable Executive order 
concerning the classification of records, CIGIE must refer the 
responsibility for responding to the request regarding that information 
to the agency that classified the information, or that should consider 
the information for classification. Whenever CIGIE's record contains 
information that has been derivatively classified (for example, when it 
contains information classified by another agency), CIGIE must refer the 
responsibility for responding to that portion of the request to the 
agency that classified the underlying information.



Sec.  9800.104  Timing of responses to requests.

    (a) In general. Ordinarily, CIGIE will have 20 days (excepting 
Saturdays, Sundays, and legal public holidays) from when a request is 
received to determine whether to grant or deny the request and will 
respond to requests according to their order of receipt in each track as 
addressed in paragraph (b) of this section. In determining which records 
are responsive to a request, CIGIE ordinarily will include only records 
in its possession as of the date on which it begins its search for them. 
If any other date is used, CIGIE will inform the requester of that date.
    (b) Multitrack processing. (1) CIGIE processes requests using a 
multitrack processing system. There are four processing tracks: An 
expedited track, if the request qualifies; a simple track for relatively 
simple requests; a complex track for more complex and lengthy requests; 
and a remanded track, when a FOIA appeal is granted. After CIGIE assigns 
a request to a track for processing, CIGIE will notify the requester of 
that assignment.
    (2) CIGIE may provide requesters in its complex track with an 
opportunity to limit the scope of their requests to qualify for faster 
processing within the specified limits of the simple track.
    (c) Unusual circumstances. Whenever the statutory time limit for 
processing a request cannot be met because of ``unusual circumstances,'' 
as defined in FOIA, and CIGIE extends the time limit on that basis, 
CIGIE will, before expiration of the 20-day period to respond, notify 
the requester in writing of the unusual circumstances involved and of 
the date by which processing of the request can be expected to be 
completed. Where the extension exceeds 10 working days, CIGIE will, as 
described by FOIA, provide the requester with an opportunity to modify 
the request or arrange an alternative time period for processing. CIGIE 
will make available its designated FOIA contact and its FOIA Public 
Liaison for this purpose. CIGIE will also alert requesters to the 
availability of the Office of Government Information Services to provide 
dispute resolution services.
    (d) Aggregating requests. For the purposes of satisfying unusual 
circumstances under FOIA, CIGIE may aggregate requests in cases where it 
reasonably appears that multiple requests, made either by a requester or 
by a group of requesters acting in concert, constitute a single request 
that would otherwise involve unusual circumstances. CIGIE will not 
aggregate multiple requests that involve unrelated matters.

[[Page 1130]]

    (e) Expedited processing. (1) Requests and appeals will be processed 
on an expedited basis whenever it is determined that they involve:
    (i) Circumstances in which the lack of expedited processing could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual;
    (ii) An urgency to inform the public about an actual or alleged 
Federal Government activity, if made by a person who is primarily 
engaged in disseminating information;
    (iii) The loss of substantial due process rights; or
    (iv) A matter of widespread and exceptional media interest in which 
there exist possible questions about the government's integrity that 
affect public confidence.
    (2) A request for expedited processing may be made at any time.
    (3) A requester who seeks expedited processing must submit a 
statement, certified to be true and correct, explaining in detail the 
basis for making the request for expedited processing. For example, 
under paragraph (e)(1)(ii) of this section, a requester who is not a 
full-time member of the news media must establish that the requester is 
a person whose primary professional activity or occupation is 
information dissemination, though it need not be the requester's sole 
occupation. Such a requester also must establish a particular urgency to 
inform the public about the government activity involved in the 
request--one that extends beyond the public's right to know about 
government activity generally. The existence of numerous articles 
published on a given subject can be helpful in establishing the 
requirement that there be an ``urgency to inform'' the public on the 
topic. As a matter of administrative discretion, CIGIE may waive the 
formal certification requirement.
    (4) CIGIE will notify the requester within 10 calendar days of the 
receipt of a request for expedited processing of its decision whether to 
grant or deny expedited processing. If expedited processing is granted, 
the request will be given priority, placed in the processing track for 
expedited requests, and will be processed as soon as practicable. If a 
request for expedited processing is denied, any appeal of that decision 
will be acted on expeditiously.



Sec.  9800.105  Responses to requests.

    (a) In general. CIGIE will, to the extent practicable, communicate 
with requesters having access to the internet using electronic means, 
such as email.
    (b) Acknowledgments of requests. CIGIE will acknowledge the request 
in writing and assign it an individualized tracking number if it will 
take longer than 10 working days to process. CIGIE will include in the 
acknowledgment a brief description of the records sought to allow 
requesters to more easily keep track of their requests.
    (c) Grants of requests. Once CIGIE makes a determination to grant a 
request in full or in part, it will notify the requester in writing. 
CIGIE also will inform the requester of any fees charged under Sec.  
9800.109 and will disclose the requested records to the requester 
promptly upon payment of any applicable fees. CIGIE will inform the 
requester of the availability of the FOIA Public Liaison to offer 
assistance.
    (d) Adverse determinations of requests. When CIGIE makes an adverse 
determination denying a request in any respect, it will notify the 
requester of that determination in writing. Adverse determinations, or 
denials of requests, include decisions that: The requested record is 
exempt, in whole or in part; the request does not reasonably describe 
the records sought; the information requested is not a record subject to 
FOIA; the requested record does not exist, cannot be located, or has 
been destroyed; or the requested record is not readily reproducible in 
the form or format sought by the requester. Adverse determinations also 
include denials involving fees or fee waiver matters or denials of 
requests for expedited processing.
    (e) Content of denial. The denial will include:
    (1) The name and title or position of the person responsible for the 
denial;
    (2) A brief statement of the reasons for the denial, including any 
FOIA exemption applied by CIGIE in denying the request;

[[Page 1131]]

    (3) An estimate of the volume of any records or information 
withheld, such as the number of pages or some other reasonable form of 
estimation, although such an estimate is not required if the volume is 
otherwise indicated by deletions marked on records that are disclosed in 
part or if providing an estimate would harm an interest protected by an 
applicable exemption; and
    (4) A statement that the denial may be appealed under Sec.  9800.107 
and a description of the requirements set forth therein.
    (5) A statement notifying the requester of the assistance available 
from the FOIA Public Liaison and the dispute resolution services offered 
by the Office of Government Information Services.
    (f) Markings on released documents. Markings on released documents 
must be clearly visible to the requester. Records disclosed in part will 
be marked to show the amount of information deleted and the exemption 
under which the deletion was made unless doing so would harm an interest 
protected by an applicable exemption. The location of the information 
deleted will also be indicated on the record, if technically feasible.
    (g) Use of record exclusions. (1) In the event that CIGIE identifies 
records that may be subject to exclusion from the requirements of FOIA 
pursuant to 5 U.S.C. 552(c), CIGIE will confer with the Department of 
Justice Office of Information Policy (OIP) to obtain approval to apply 
the exclusion.
    (2) Should CIGIE invoke an exclusion, it will maintain an 
administrative record of the process of invocation and approval of the 
exclusion by OIP.



Sec.  9800.106  Confidential commercial information.

    (a) Definitions--(1) Confidential commercial information means 
commercial or financial information obtained by CIGIE from a submitter 
that may be protected from disclosure under Exemption 4 of FOIA, 5 
U.S.C. 552(b)(4).
    (2) Submitter means any person or entity, including a corporation, 
State, or foreign government, but not including another Federal 
Government entity, that provides information either directly or 
indirectly to the Federal Government.
    (b) Designation of confidential commercial information. A submitter 
of confidential commercial information must use good faith efforts to 
designate by appropriate markings, either at the time of submission or 
within a reasonable time thereafter, any portion of its submission that 
it considers to be protected from disclosure under Exemption 4. These 
designations shall expire 10 years after the date of the submission 
unless the submitter requests and provides justification for a longer 
designation period.
    (c) When notice to submitters is required. (1) CIGIE will promptly 
provide written notice to a submitter of confidential commercial 
information whenever records containing such information are requested 
under FOIA if, after reviewing the request, the responsive records, and 
any appeal by the requester, CIGIE determines that it may be required to 
disclose the records, provided:
    (i) The requested information has been designated in good faith by 
the submitter as information considered protected from disclosure under 
Exemption 4; or
    (ii) CIGIE has a reason to believe that the requested information 
may be protected from disclosure under Exemption 4, but has not yet 
determined whether the information is protected from disclosure under 
that exemption or any other applicable exemption.
    (2) The notice will either describe the commercial information 
requested or include a copy of the requested records or portions of 
records containing the information. In cases involving a voluminous 
number of submitters, notice may be made by posting or publishing the 
notice in a place or manner reasonably likely to accomplish it.
    (d) Exceptions to submitter notice requirements. The notice 
requirements of this section will not apply if:
    (1) CIGIE determines that the information is exempt under FOIA;
    (2) The information has been lawfully published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by a statute other 
than FOIA or by a regulation issued in accordance

[[Page 1132]]

with the requirements of Executive Order 12600; or
    (4) The designation made by the submitter under paragraph (b) of 
this section appears obviously frivolous, except that, in such a case, 
CIGIE will give the submitter written notice of any final decision to 
disclose the information and must provide that notice within a 
reasonable number of days prior to a specified disclosure date.
    (e) Opportunity to object to disclosure. (1) CIGIE will specify a 
reasonable time period within which the submitter must respond to the 
notice referenced above. If a submitter has any objections to 
disclosure, it should provide CIGIE a detailed written statement that 
specifies all grounds for withholding the particular information under 
any exemption of FOIA. To rely on Exemption 4 as basis for 
nondisclosure, the submitter must explain why the information 
constitutes a trade secret or commercial or financial information that 
is privileged or confidential.
    (2) A submitter who fails to respond within the time period 
specified in the notice shall be considered to have no objection to 
disclosure of the information. Information received by CIGIE after the 
date of any disclosure decision shall not be considered by CIGIE. Any 
information provided by a submitter under this part may itself be 
subject to disclosure under FOIA.
    (f) Analysis of objections. CIGIE will consider a submitter's 
objections and specific grounds for nondisclosure in deciding whether to 
disclose the requested information.
    (g) Notice of intent to disclose. Whenever CIGIE decides to disclose 
information over the objection of a submitter, CIGIE will provide the 
submitter written notice, which will include:
    (1) A statement of the reasons why each of the submitter's 
disclosure objections was not sustained;
    (2) A description of the information to be disclosed; and
    (3) A specified disclosure date, which will be a reasonable time 
subsequent to the notice.
    (h) Notice of FOIA lawsuit. Whenever a requester files a lawsuit 
seeking to compel the disclosure of confidential commercial information, 
CIGIE will promptly notify the submitter.
    (i) Requester notification. CIGIE will notify a requester whenever 
it provides the submitter with notice and an opportunity to object to 
disclosure; whenever it notifies the submitter of its intent to disclose 
the requested information; and whenever a submitter files a lawsuit to 
prevent the disclosure of the information.



Sec.  9800.107  Administrative appeals.

    (a) Appeals of adverse determinations. A requester may appeal a 
determination denying a FOIA request in any respect to the CIGIE 
Chairperson c/o Office of General Counsel, Council of the Inspectors 
General on Integrity and Efficiency, 1717 H Street NW, Suite 825, 
Washington, DC 20006. The appeal must be in writing, and must be 
submitted either by:
    (1) Regular mail sent to the address listed in this subsection, 
above; or
    (2) By fax sent to the FOIA Officer at (202) 254-0162; or
    (3) By email to [email protected].
    (b) Submission and content. The Office of General Counsel must 
receive the appeal within 90 calendar days of the date of the letter 
denying the request. For the quickest possible handling, the appeal 
letter and envelope or any fax cover sheet or email subject line should 
be clearly marked ``FOIA Appeal.'' The appeal letter must clearly 
identify the CIGIE determination (including the assigned FOIA request 
number, if known) being appealed.
    (c) Adjudication of appeals. (1) The CIGIE Chairperson or designee 
will act on all appeals under this section.
    (2) An appeal ordinarily will not be adjudicated if the request 
becomes a matter of FOIA litigation.
    (3) On receipt of any appeal involving classified information, CIGIE 
will take appropriate action to ensure compliance with applicable 
classification rules.
    (d) Decisions on appeals. Ordinarily, CIGIE will have 20 days 
(excepting Saturdays, Sundays, and legal public holidays) from receipt 
of the appeal to issue an appeal decision. 5 U.S.C. 552(a)(6)(A)(ii). 
CIGIE will provide its

[[Page 1133]]

decision on an appeal in writing. A decision that upholds CIGIE's 
determination in whole or in part will contain a statement that 
identifies the reasons for the affirmance, including any FOIA exemptions 
applied. The decision will provide the requester with notification of 
the statutory right to file a lawsuit and will inform the requester of 
the dispute resolution services offered by the Office of Government 
Information Services of the National Archives and Records Administration 
as a non-exclusive alternative to litigation. If CIGIE's decision is 
remanded or modified on appeal, CIGIE will notify the requester of that 
determination in writing. CIGIE will then further process the request in 
accordance with that appeal determination and will respond directly to 
the requester.
    (e) Engaging in dispute resolution services provided by the Office 
of Government Information Services. Mediation is a voluntary process. If 
CIGIE agrees to participate in the mediation services provided by the 
Office of Government Information Services, it will actively engage as a 
partner to the process in an attempt to resolve the dispute.
    (f) When appeal is required. Before seeking review by a court of 
CIGIE's adverse determination, a requester generally must first submit a 
timely administrative appeal.



Sec.  9800.108  Preservation of records.

    CIGIE will preserve all correspondence pertaining to the requests 
that it receives under this part, as well as copies of all requested 
records, until disposition or destruction is authorized pursuant to 
title 44 of the United States Code and the relevant approved records 
retention schedule. Records shall not be disposed of or destroyed while 
they are the subject of a pending request, appeal, or lawsuit under 
FOIA.



Sec.  9800.109  Fees.

    (a) In general. CIGIE will charge for processing requests under FOIA 
in accordance with the provisions of this section and with the OMB 
Guidelines. To resolve any fee issues that arise under this section, 
CIGIE may contact a requester for additional information. CIGIE will 
ensure that searches, review, and duplication are conducted in the most 
efficient and the least expensive manner. CIGIE ordinarily will collect 
all applicable fees before sending copies of records to a requester. 
Requesters must pay fees by check or money order made payable to the 
Treasury of the United States.
    (b) Definitions. For purposes of this section:
    (1) Commercial use request is a request that asks for information 
for a use or a purpose that furthers a commercial, trade, or profit 
interest, which can include furthering those interests through 
litigation. CIGIE's decision to place a requester in the commercial use 
category will be made on a case-by-case basis based on the requester's 
intended use of the information. CIGIE will notify requester if 
requester is placed in the commercial use category.
    (2) Direct costs are those expenses that an agency incurs in 
searching for and duplicating (and, in the case of commercial use 
requests, reviewing) records to respond to a FOIA request. For example, 
direct costs include the salary of the employee performing the work 
(i.e., the basic rate of pay for the employee, plus 16 percent of that 
rate to cover benefits) and the cost of operating computers and other 
electronic equipment, such as photocopiers and scanners. Direct costs do 
not include overhead expenses, such as the costs of space, and of 
heating or lighting a facility.
    (3) Duplication is reproducing a copy of a record, or of the 
information contained in it, necessary to respond to a FOIA request. 
Copies can take the form of paper, audiovisual materials, or electronic 
records, among others.
    (4) Educational institution is any school that operates a program of 
scholarly research. A requester in this fee category must show that the 
request is made in connection with the requester's role at the 
educational institution. CIGIE may seek assurance from the requester 
that the request is in furtherance of scholarly research and will advise 
requesters of their placement in this category.
    (5) Noncommercial scientific institution is an institution that is 
not operated on a ``commercial'' basis, as defined in paragraph (b)(1) 
of this section, and that is operated solely for the purpose

[[Page 1134]]

of conducting scientific research the results of which are not intended 
to promote any particular product or industry. A requester in this 
category must show that the request is authorized by and is made under 
the auspices of a qualifying institution and that the records are sought 
to further scientific research and are not for a commercial use. CIGIE 
will notify requester if requester is placed in the noncommercial 
scientific institution category.
    (6) Representative of the news media is any person or entity that 
actively gathers information of potential interest to a segment of the 
public, uses its editorial skills to turn the raw materials into a 
distinct work, and distributes that work to an audience. The term 
``news'' means information that is about current events or that would be 
of current interest to the public. Examples of news media entities 
include television or radio stations that broadcast ``news'' to the 
public at large and publishers of periodicals that disseminate ``news'' 
and make their products available through a variety of means to the 
general public, including news organizations that disseminate solely on 
the internet. A request for records supporting the news-dissemination 
function of the requester will not be considered to be for a commercial 
use. ``Freelance'' journalists who demonstrate a solid basis for 
expecting publication through a news media entity will be considered as 
a representative of the news media. A publishing contract would provide 
the clearest evidence that publication is expected; however, CIGIE will 
also consider a requester's past publication record in making this 
determination. CIGIE will notify requester if requester is placed in the 
representative of the news media category.
    (7) Review is the examination of a record located in response to a 
request to determine whether any portion of it is exempt from 
disclosure. Review time includes processing any record for disclosure, 
such as doing all that is necessary to prepare the record for 
disclosure, including the process of redacting the record and marking 
the appropriate exemptions. Review costs are properly charged even if a 
record ultimately is not disclosed. Review time also includes time spent 
both obtaining and considering any formal objection to disclosure made 
by a confidential commercial information submitter under Sec.  9800.106, 
but it does not include time spent resolving general legal or policy 
issues regarding the application of exemptions.
    (8) Search is the process of looking for and retrieving records or 
information responsive to a request. Search time includes page-by-page 
or line-by-line identification of information within records and the 
reasonable efforts expended to locate and retrieve information from 
electronic records.
    (c) Charging fees. In responding to FOIA requests, CIGIE will charge 
the following fees unless a waiver or reduction of fees has been granted 
under paragraph (k) of this section. Because the fee amounts provided 
below already account for the direct costs associated with a given fee 
type, CIGIE will not add any additional costs to charges calculated 
under this section.
    (1) Search. (i) Requests made by educational institutions, 
noncommercial scientific institutions, or representatives of the news 
media are not subject to search fees. Search fees will be charged for 
all other requesters, subject to the restrictions of paragraph (d) of 
this section. CIGIE may properly charge for time spent searching even if 
they do not locate any responsive records or if they determine that the 
records are entirely exempt from disclosure.
    (ii) For each quarter hour spent by personnel searching for 
requested records, including electronic searches that do not require new 
programming, the fees will be as follows: Professional--$10.00; and 
clerical/administrative--$4.75.
    (iii) Requesters will be charged the direct costs associated with 
conducting any search that requires the creation of a new computer 
program to locate the requested records. Requesters will be notified of 
the costs associated with creating such a program and must agree to pay 
the associated costs before the costs may be incurred.
    (iv) For requests that require the retrieval of records stored by an 
agency at a Federal records center operated by

[[Page 1135]]

National Archives and Records Administration, additional costs will be 
charged in accordance with the Transactional Billing Rate Schedule 
established by National Archives and Records Administration.
    (2) Duplication. Duplication fees will be charged to all requesters, 
subject to the restrictions of paragraph (d) of this section. CIGIE will 
honor a requester's preference for receiving a record in a particular 
form or format where it is readily reproducible by CIGIE in the form or 
format requested. Where photocopies are supplied, CIGIE will provide one 
copy per request at a cost of five cents per page. For copies of records 
produced on tapes, disks, or other media, CIGIE will charge the direct 
costs of producing the copy, including operator time. Where paper 
documents must be scanned to comply with a requester's preference to 
receive the records in an electronic format, the requester shall pay the 
direct costs associated with scanning those materials. For other forms 
of duplication, CIGIE shall charge the direct costs.
    (3) Review. Review fees shall be charged to requesters who make 
commercial use requests. Review fees shall be assessed in connection 
with the initial review of the record, i.e., the review conducted by 
CIGIE to determine whether an exemption applies to a particular record 
or portion of a record. No charge will be made for review at the 
administrative appeal stage of exemptions applied at the initial review 
stage. However, if a particular exemption is deemed to no longer apply, 
any costs associated with CIGIE's re-review of the records in order to 
consider the use of other exemptions may be assessed as review fees. 
Review fees shall be charged at the same rates as those charged for a 
search under paragraph (c)(1)(ii) of this section.
    (d) Restrictions on charging fees. (1) No search fees will be 
charged for requests by educational institutions (unless the records are 
sought for a commercial use), noncommercial scientific institutions, or 
representatives of the news media.
    (2) If CIGIE fails to comply with FOIA's time limits in which to 
respond to a request, it may not charge search fees, or, in the 
instances of requests from requesters described in paragraph (d)(1) of 
this section, may not charge duplication fees, except as described in 
paragraphs (d)(2)(i) through (iii) of this section.
    (i) If CIGIE has determined that unusual circumstances, as defined 
by FOIA, apply and CIGIE provided timely written notice to the requester 
in accordance with FOIA, a failure to comply with the time limit will be 
excused for an additional 10 days.
    (ii) If CIGIE has determined that unusual circumstances as defined 
by FOIA apply, and more than 5,000 pages are necessary to respond to the 
request, CIGIE may charge search fees, or, in the case of requesters 
described in paragraph (d)(1) of this section, may charge duplication 
fees if the following steps are taken. CIGIE will have provided timely 
written notice of unusual circumstances to the requester in accordance 
with FOIA and CIGIE will have discussed with the requester via written 
mail, email, or telephone (or made not less than three good-faith 
attempts to do so) how the requester could effectively limit the scope 
of the request in accordance with 5 U.S.C. 552(a)(6)(B)(ii). If this 
exception is satisfied, CIGIE may charge all applicable fees incurred in 
the processing of the request.
    (iii) If a court has determined that exceptional circumstances 
exist, as defined by FOIA, a failure to comply with the time limits will 
be excused for the length of time provided by the court order.
    (3) No search or review fees will be charged for a quarter-hour 
period unless more than half of that period is required for search or 
review.
    (4) Except for requesters seeking records for a commercial use, 
CIGIE will provide without charge:
    (i) The first 100 pages of duplication (or the cost equivalent for 
other media); and
    (ii) The first two hours of search.
    (5) When, after first deducting the 100 free pages (or its cost 
equivalent) and the first two hours of search, a total fee calculated 
under paragraph (c) of this section is $25.00 or less for any request, 
no fee will be charged.
    (e) Notice of anticipated fees in excess of $25.00. (1) When CIGIE 
determines or

[[Page 1136]]

estimates that the fees to be assessed in accordance with this section 
will exceed $25.00, CIGIE will notify the requester of the actual or 
estimated amount of the fees, including a breakdown of the fees for 
search, review, or duplication, unless the requester has indicated a 
willingness to pay fees as high as those anticipated. If only a portion 
of the fee can be estimated readily, CIGIE will advise the requester 
accordingly. If the requester is a noncommercial use requester, the 
notice will specify that the requester is entitled to the statutory 
entitlements of 100 pages of duplication at no charge and, if the 
requester is charged search fees, two hours of search time at no charge, 
and will advise the requester whether those entitlements have been 
provided.
    (2) In cases in which a requester has been notified that the actual 
or estimated fees exceed $25.00, the request shall not be considered 
received and further work will not be completed until the requester 
commits in writing to pay the actual or estimated total fee, or 
designates some amount of fees the requester is willing to pay, or in 
the case of a noncommercial use requester who has not yet been provided 
with the requester's statutory entitlements, designates that the 
requester seeks only that which can be provided by the statutory 
entitlements. The requester must provide the commitment or designation 
in writing, and must, when applicable, designate an exact dollar amount 
the requester is willing to pay. CIGIE is not required to accept 
payments in installments.
    (3) If the requester has indicated a willingness to pay some 
designated amount of fees, but CIGIE estimates that the total fee will 
exceed that amount, CIGIE shall toll the processing of the request when 
it notifies the requester of the estimated fees in excess of the amount 
the requester has indicated a willingness to pay. CIGIE will inquire 
whether the requester wishes to revise the amount of fees the requester 
is willing to pay or modify the request. Once the requester responds, 
the time to respond will resume from where it was at the date of the 
notification.
    (4) CIGIE will make available their FOIA Public Liaison or other 
FOIA professional to assist any requester in reformulating a request to 
meet the requester's needs at a lower cost.
    (f) Charges for other services. Although not required to provide 
special services, if CIGIE chooses to do so as a matter of 
administrative discretion, the direct costs of providing the service 
shall be charged. Examples of such services include certifying that 
records are true copies, providing multiple copies of the same document, 
or sending records by means other than first class mail.
    (g) Charging interest. CIGIE may charge interest on any unpaid bill 
starting on the 31st day following the date of billing the requester. 
Interest charges shall be assessed at the rate provided in 31 U.S.C. 
3717 and will accrue from the billing date until payment is received by 
CIGIE. CIGIE will follow the provisions of the Debt Collection Act of 
1982, Public Law 97-365, 96 Stat. 1749, as amended, and its 
administrative procedures, including the use of consumer reporting 
agencies, collection agencies, and offset.
    (h) Aggregating requests. When CIGIE reasonably believes that a 
requester or a group of requesters acting in concert is attempting to 
divide a single request into a series of requests for the purpose of 
avoiding fees, CIGIE may aggregate those requests and charge 
accordingly. CIGIE may presume that multiple requests of this type made 
within a 30-day period have been made to avoid fees. For requests 
separated by a longer period, CIGIE will aggregate them only where there 
is a reasonable basis for determining that aggregation is warranted in 
view of all the circumstances involved. Multiple requests involving 
unrelated matters will not be aggregated.
    (i) Advance payments. (1) For requests other than those described in 
paragraph (i)(2) or (3) of this section, CIGIE will not require the 
requester to make an advance payment before work is commenced or 
continued on a request. Payment owed for work already completed (i.e., 
payment before copies are sent to a requester) is not an advance 
payment.

[[Page 1137]]

    (2) When CIGIE determines or estimates that a total fee to be 
charged under this section will exceed $250.00, it may require that the 
requester make an advance payment up to the amount of the entire 
anticipated fee before beginning to process the request. CIGIE may elect 
to process the request prior to collecting fees when it receives a 
satisfactory assurance of full payment from a requester with a history 
of prompt payment.
    (3) Where a requester has previously failed to pay a properly 
charged FOIA fee to CIGIE or another agency within 30 days of the 
billing date, CIGIE may require that the requester pay the full amount 
due, plus any applicable interest on that prior request, and CIGIE may 
require that the requester make an advance payment of the full amount of 
any anticipated fee before CIGIE begins to process a new request or 
continues to process a pending request or any pending appeal. Where 
CIGIE has a reasonable basis to believe that a requester has 
misrepresented the requester's identity to avoid paying outstanding 
fees, it may require that the requester provide proof of identity.
    (4) In cases in which CIGIE requires advance payment, the request 
shall not be considered received and further work will not be completed 
until the required payment is received. If the requester does not pay 
the advance payment within 30 days after the date of CIGIE's fee 
determination, the request will be closed.
    (j) Other statutes specifically providing for fees. The fee schedule 
of this section does not apply to fees charged under any statute that 
specifically requires an agency to set and collect fees for particular 
types of records. In instances where records responsive to a request are 
subject to a statutorily-based fee schedule program, CIGIE shall inform 
the requester of the contact information for that program.
    (k) Requirements for waiver or reduction of fees. (1) Requesters may 
seek a waiver of fees by submitting a written application demonstrating 
how disclosure of the requested information is in the public interest 
because it is likely to contribute significantly to public understanding 
of the operations or activities of the government and is not primarily 
in the commercial interest of the requester.
    (2) CIGIE will furnish records responsive to a request without 
charge or at a reduced rate when it determines, based on all available 
information, that disclosure of the requested information is in the 
public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the government 
and is not primarily in the commercial interest of the requester. In 
deciding whether this standard is satisfied CIGIE will consider the 
factors described in paragraphs (k)(2)(i) through (iii) of this section.
    (i) Disclosure of the requested information would shed light on the 
operations or activities of the government. The subject of the request 
must concern identifiable operations or activities of the Federal 
Government with a connection that is direct and clear, not remote or 
attenuated.
    (ii) Disclosure of the requested information would be likely to 
contribute significantly to public understanding of those operations or 
activities. This factor is satisfied when the following criteria are 
met:
    (A) Disclosure of the requested records must be meaningfully 
informative about government operations or activities. The disclosure of 
information that already is in the public domain, in either the same or 
a substantially identical form, would not be meaningfully informative if 
nothing new would be added to the public's understanding.
    (B) The disclosure must contribute to the understanding of a 
reasonably broad audience of persons interested in the subject, as 
opposed to the individual understanding of the requester. A requester's 
expertise in the subject area as well as the requester's ability and 
intention to effectively convey information to the public must be 
considered. CIGIE will presume that a representative of the news media 
will satisfy this consideration.
    (iii) The disclosure must not be primarily in the commercial 
interest of the requester. To determine whether disclosure of the 
requested information is primarily in the commercial interest

[[Page 1138]]

of the requester, CIGIE will consider the following criteria:
    (A) CIGIE must identify whether the requester has any commercial 
interest that would be furthered by the requested disclosure. A 
commercial interest includes any commercial, trade, or profit interest. 
Requesters must be given an opportunity to provide explanatory 
information regarding this consideration.
    (B) If there is an identified commercial interest, CIGIE must 
determine whether that is the primary interest furthered by the request. 
A waiver or reduction of fees is justified when the requirements of 
paragraphs (k)(2)(i) and (ii) of this section are satisfied and any 
commercial interest is not the primary interest furthered by the 
request. CIGIE ordinarily will presume that when a news media requester 
has satisfied the requirements of paragraphs (k)(2)(i) and (ii) of this 
section, the request is not primarily in the commercial interest of the 
requester. Disclosure to data brokers or others who merely compile and 
market government information for direct economic return will not be 
presumed to primarily serve the public interest.
    (3) Where only some of the records to be released satisfy the 
requirements for a waiver of fees, a waiver will be granted for those 
records.
    (4) Requests for a waiver or reduction of fees should be made when 
the request is first submitted to CIGIE and should address the criteria 
referenced above. A requester may submit a fee waiver request at a later 
time so long as the underlying record request is pending or on 
administrative appeal. When a requester who has committed to pay fees 
subsequently asks for a waiver of those fees and that waiver is denied, 
the requester shall be required to pay any costs incurred up to the date 
the fee waiver request was received.



Sec.  9800.110  Public reading room.

    CIGIE maintains an electronic public reading room on its website, 
http://www.ignet.gov, which contains the records that FOIA requires be 
regularly made available for public inspection and copying, as well as 
additional records of interest to the public. CIGIE is responsible for 
determining which of its records must be made publicly available, for 
identifying additional records of interest to the public that are 
appropriate for public disclosure, and for posting and indexing such 
records. CIGIE must ensure that its website of posted records and 
indices is reviewed and updated on an ongoing basis. CIGIE's FOIA Public 
Liaison can assist individuals in locating records at CIGIE.



Sec.  9800.111  Other rights and services.

    Nothing in this part shall be construed to entitle any person, as of 
right, to any service or to the disclosure of any record to which such 
person is not entitled under FOIA.



PART 9801_PRIVACY ACT REGULATIONS--Table of Contents



                      Subpart A_General Provisions

Sec.
9801.101 Purpose and scope.
9801.102 CIGIE organization.
9801.103 Definitions.
9801.104 Rules for determining if an individual is the subject of a 
          record.
9801.105 Employee standards of conduct.
9801.106 Use and collection of social security numbers.
9801.107 Other rights and services.

        Subpart B_Access to Records and Accounting of Disclosures

9801.201 Requests for access.
9801.202 Response to requests.
9801.203 Granting access.
9801.204 Special procedures: Medical records.
9801.205 Appeals from denials of requests for access to records.
9801.206 Response to appeal of a denial of access.
9801.207 Fees.
9801.208 Requests for accounting of record disclosures.

                     Subpart C_Amendment of Records

9801.301 Requests for amendment of record.
9801.302 Response to requests.
9801.303 Appeal from adverse determination on amendment.
9801.304 Response to appeal of adverse determination on amendment; 
          disagreement statements.
9801.305 Assistance in preparing request to amend a record or to appeal 
          an initial adverse determination.

[[Page 1139]]

                          Subpart D_Exemptions

9801.401 Exemptions.

    Authority: Section 11 of the Inspector General Act of 1978, as 
amended, 5 U.S.C. app.; 5 U.S.C. 301, 552a; 31 U.S.C. 9701.

    Source: 81 FR 86563, Dec. 1, 2016, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  9801.101  Purpose and scope.

    This part contains the regulations of the Council of the Inspectors 
General on Integrity and Efficiency (CIGIE) implementing the Privacy Act 
of 1974, 5 U.S.C. 552a. This part sets forth the basic responsibilities 
of CIGIE with regard to CIGIE's compliance with the requirements of the 
Privacy Act and offers guidance to members of the public who wish to 
exercise any of the rights established by the Privacy Act with regard to 
records maintained by CIGIE. These regulations should be read in 
conjunction with the Privacy Act, which explains in more detail 
individuals' rights.



Sec.  9801.102  CIGIE organization.

    (a) Centralized program. CIGIE has a centralized Privacy Act 
program, with one office receiving and coordinating the processing of 
all Privacy Act requests to CIGIE.
    (b) Acceptance of requests and appeals. CIGIE will accept initial 
requests or appeals regarding CIGIE records.

[82 FR 51333, Nov. 6, 2017]



Sec.  9801.103  Definitions.

    (a) For purposes of this part the terms individual, maintain, 
record, routine use, and system of records, shall have the meanings set 
forth in 5 U.S.C. 552a(a).
    (b) CIGIE means the Council of the Inspectors General on Integrity 
and Efficiency and includes its predecessor entities, the Executive 
Council on Integrity and Efficiency and the President's Council on 
Integrity and Efficiency.
    (c) Days, unless stated as ``calendar days,'' are working days and 
do not include Saturdays, Sundays, or Federal holidays.
    (d) IC means the CIGIE Integrity Committee established under section 
11(d) of the Inspector General Act of 1978, as amended, 5 U.S.C. app. 
(Inspector General Act).
    (e) Request for access to a record means a request made under 
Privacy Act subsection (d)(1).
    (f) Request for amendment of a record means a request made under 
Privacy Act subsection (d)(2).
    (g) Request for an accounting means a request made under Privacy Act 
subsection (c)(3).
    (h) Requester means an individual who makes a request for access, a 
request for amendment, or a request for an accounting under the Privacy 
Act.



Sec.  9801.104  Rules for determining if an individual is the subject 
of a record.

    An individual seeking to determine if a specific CIGIE system of 
records contains a record pertaining to the individual must follow the 
procedures set forth for access to records in Sec.  9801.201(a), (b)(1) 
and (2), (c), and (d). A request to determine if an individual is the 
subject of a record will ordinarily be responded to within 10 days, 
except when CIGIE determines otherwise, in which case the request will 
be acknowledged within 10 days and the individual will be informed of 
the reasons for the delay and an estimated date by which a response will 
be issued.



Sec.  9801.105  Employee standards of conduct.

    CIGIE will inform its employees involved in the design, development, 
operation, or maintenance of any system of records, or in maintaining 
any record, of the provisions of the Privacy Act, including the Act's 
civil liability and criminal penalty provisions. Unless otherwise 
permitted by law, an employee of CIGIE shall:
    (a) Collect from individuals only the information that is relevant 
and necessary to discharge the responsibilities of CIGIE;
    (b) Collect information about an individual directly from that 
individual whenever practicable when the information may result in 
adverse determinations about an individual's rights, benefits, and 
privileges under Federal programs;

[[Page 1140]]

    (c) Inform each individual from whom information is collected of:
    (1) The legal authority to collect the information and whether 
providing it is mandatory or voluntary;
    (2) The principal purpose for which CIGIE intends to use the 
information;
    (3) The routine uses CIGIE may make of the information; and
    (4) The effects on the individual, if any, of not providing the 
information;
    (d) Maintain no system of records without public notice and notify 
appropriate CIGIE officials of the existence or development of any 
system of records that is not the subject of a current or planned public 
notice;
    (e) Maintain all records that are used by CIGIE in making any 
determination about an individual with such accuracy, relevance, 
timeliness, and completeness as is reasonably necessary to ensure 
fairness to the individual in the determination;
    (f) Except as to disclosures made to an agency or made under the 
Freedom of Information Act, 5 U.S.C. 552 (FOIA), make reasonable 
efforts, prior to disseminating any record about an individual, to 
ensure that the record is accurate, relevant, timely, and complete;
    (g) Maintain no record describing how an individual exercises his or 
her First Amendment rights, unless it is expressly authorized by statute 
or by the individual about whom the record is maintained, or is 
pertinent to and within the scope of an authorized law enforcement 
activity;
    (h) When required by the Privacy Act, maintain an accounting in the 
specified form of all disclosures of records by CIGIE to persons, 
organizations, or agencies;
    (i) Maintain and use records with care to prevent the unauthorized 
or inadvertent disclosure of a record to anyone. No record contained in 
a CIGIE system of records shall be disclosed to another person, or to 
another agency outside CIGIE, except pursuant to a written request by, 
or with the prior written consent of, the individual to whom the record 
pertains, unless the disclosure is otherwise authorized by the Privacy 
Act; and
    (j) Notify the appropriate CIGIE official of any record that 
contains information that the Privacy Act does not permit CIGIE to 
maintain.

[81 FR 86563, Dec. 1, 2016, as amended at 82 FR 51333, Nov. 6, 2017]



Sec.  9801.106  Use and collection of social security numbers.

    (a) No denial of right, benefit, or privilege. Individuals may not 
be denied any right, benefit, or privilege as a result of refusing to 
provide their social security numbers, unless the collection is required 
by Federal statute; and
    (b) Notification to individual. Individuals requested to provide 
their social security numbers must be informed of:
    (1) Whether providing social security numbers is mandatory or 
voluntary;
    (2) The statutory or regulatory authority that authorizes the 
collection of social security numbers; and
    (3) The uses that will be made of the numbers.



Sec.  9801.107  Other rights and services.

    Nothing in this part shall be construed to entitle any person, as of 
right, to any service or to the disclosure of any record to which such 
person is not entitled under the Privacy Act.



        Subpart B_Access to Records and Accounting of Disclosures



Sec.  9801.201  Requests for access.

    (a) How addressed. A requester seeking access to records pertaining 
to the requester in a CIGIE system of records should submit a written 
request that includes the words ``Privacy Act Request'' on both the 
envelope and at the top of the request letter to the Executive Director, 
Council of the Inspectors General on Integrity and Efficiency, 1717 H 
Street NW., Suite 825, Washington, DC 20006.
    (b) Description of records sought. (1) A request should contain a 
specific reference to the CIGIE system of records from which access to 
the records is sought. Notices of CIGIE systems of records subject to 
the Privacy Act are published in the Federal Register, and copies of the 
notices are available on CIGIE's Web site at www.ignet.gov, or upon 
request from CIGIE's Office of General Counsel.

[[Page 1141]]

    (2) If the written inquiry does not refer to a specific system of 
records, it must describe the records that are sought in enough detail 
to enable CIGIE personnel to locate the system of records containing 
them with a reasonable amount of effort.
    (3) The request should state whether the requester wants a copy of 
the record or wants to examine the record in person.
    (c) Verification of identity. A requester seeking access to records 
pertaining to the requester must verify their identity in their request. 
The request must state the requester's full name, current address, and 
date and place of birth. The requester must sign the request and the 
signature must either be notarized or state, ``Under penalty of perjury, 
I hereby declare that I am the person named above and I understand that 
any falsification of this statement is punishable under the provisions 
of Title 18, United States Code (U.S.C.), Section 1001 by a fine of not 
more than $10,000 or by imprisonment of not more than five years, or 
both; and that requesting or obtaining any record(s) under false 
pretenses is punishable under the provisions of Title 5, U.S.C., Section 
552a(i)(3) as a misdemeanor and by a fine of not more than $5,000.'' In 
order to help the identification and location of requested records, the 
requester may optionally include their social security number. No 
identification shall be required if the records are required by 5 U.S.C. 
552 to be released.
    (d) Verification of guardianship. When making a request as the 
parent or guardian of a minor or as the guardian of someone determined 
by a court to be incompetent for access to records about that 
individual, the requester must establish:
    (1) The identity of the individual who is the subject of the record, 
by stating the name, current address, date and place of birth, and, at 
the requester's option, the social security number of the individual;
    (2) The requester's identity, as required in paragraph (c) of this 
section;
    (3) That the requester is the parent or guardian of that individual, 
which may be established by providing a copy of the individual's birth 
certificate showing the requester's parentage or by providing a court 
order establishing the requester's guardianship; and
    (4) That the requester is acting on behalf of that individual in 
making the request.



Sec.  9801.202  Response to requests.

    A request for access will ordinarily be responded to within 10 days, 
except when CIGIE determines otherwise, in which case the request will 
be acknowledged within 10 days and the requester will be informed of the 
reasons for the delay and an estimated date by which a response will be 
issued. A response to a request for access should include the following:
    (a) A statement that there is a record or records as requested or a 
statement that there is not a record in the system of records;
    (b) The method of access (if a copy of all the records requested is 
not provided with the response);
    (c) The amount of any fees to be charged for copies of records under 
Sec.  9801.207, if applicable;
    (d) The name and title of the official responsible for the response; 
and
    (e) If the request is denied in whole or in part, or no record is 
found in the system, a statement of the reasons for the denial, or a 
statement that no record has been found, and notice of the procedures 
for appealing the denial or no record finding.



Sec.  9801.203  Granting access.

    (a) Means of access. (1) The methods for allowing access to records, 
when such access has been granted by CIGIE, are:
    (i) Examination in person in a designated office during the hours 
specified by CIGIE; or
    (ii) Providing copies of the records.
    (2) When a requester has not indicated whether he wants a copy of 
the record or wants to examine the record in person, CIGIE may choose 
the means of granting access. However, the means chosen should not 
unduly impede the requester's right of access. A requester may elect to 
receive a copy of the records after having examined them.
    (b) Accompanying individual. If the requester is granted in person 
access to examine the records, the requester may be accompanied by 
another individual

[[Page 1142]]

of the requester's choice during the course of the examination of the 
records. CIGIE may require the requester to submit a signed statement 
authorizing the accompanying individual's access to the records.
    (c) Certified copies. CIGIE will not furnish certified copies of 
records. When copies are to be furnished, they may be provided as 
determined by CIGIE.
    (d) Original records. When the requester seeks to obtain original 
documentation, CIGIE reserves the right to limit the request to copies 
of the original records.



Sec.  9801.204  Special procedures: Medical records.

    In the event CIGIE receives a request pursuant to Sec.  9801.201 for 
access to medical records (including psychological records) whose 
disclosure CIGIE determines would be harmful to the individual to whom 
they relate, it may refuse to disclose the records directly to the 
requester but shall transmit them to a physician designated by the 
requester.



Sec.  9801.205  Appeals from denials of requests for access to records.

    (a) How addressed. A requester may submit a written appeal of the 
decision by CIGIE to deny an initial request for access to records or a 
no record response to the Chairperson, Council of the Inspectors General 
on Integrity and Efficiency, 1717 H Street NW., Suite 825, Washington, 
DC 20006. The words ``Privacy Act Appeal'' should be included on the 
envelope and at the top of the letter of appeal.
    (b) Deadline and content. The appeal must be received by CIGIE 
within 60 days of the date of the letter denying the access request or 
reflecting the no record finding and should contain a brief description 
of the records involved or copies of the relevant correspondence from 
CIGIE. The appeal should attempt to refute the reasons given by CIGIE in 
support of its decision to deny the initial request for access or no 
record finding.



Sec.  9801.206  Response to appeal of a denial of access.

    (a) Access granted. If the Chairperson or the Chairperson's designee 
determines that access to the records should be granted, the response 
will state how access will be provided if the records are not included 
with the response.
    (b) Denial affirmed. Any decision that either partially or fully 
affirms the initial decision to deny access or no record finding shall 
inform the requester of the right to seek judicial review of the 
decision in accordance with the Privacy Act (5 U.S.C. 552a(g)).
    (c) When appeal is required. If a requester wishes to seek review by 
a court of any adverse determination or denial of a request, the 
requester must first appeal it under Sec.  9801.205.



Sec.  9801.207  Fees.

    (a) No fees for most services. Services for which fees will not be 
charged:
    (1) The search and review time expended by CIGIE to produce a 
record;
    (2) The first copy of the records provided; and
    (3) CIGIE making the records available to be personally reviewed by 
the requester.
    (b) Fees for additional copies. When a requester requests additional 
copies of records, CIGIE will assess the requester a fee of $.20 per 
page. CIGIE will bill requester in arrears for such fees, except as 
follows:
    (1) If the total fee for additional copies amounts to more than 
$25.00, the requester will be notified of the fee amount. Except as 
specified in paragraph (b)(2) of this section, upon requester's written 
agreement to pay the assessed fees, CIGIE will provide the additional 
copies without prepayment of such fees (i.e., payment will be accepted 
in arrears).
    (2) An advance payment before additional copies of the records are 
made will be required if:
    (i) CIGIE determines that the total fee to be assessed under this 
section exceeds $250.00. When such a determination is made, the 
requester will be notified of the determination and will be required to 
submit an advance payment of an amount up to the total fee. The amount 
of the advanced payment will be at the sole discretion of CIGIE and will 
be based, in part, on whether requester has a history of prompt payment 
of Privacy Act fees. If the required advanced payment is an amount

[[Page 1143]]

less than the total fee, requester will be required to submit a written 
agreement to pay any fees not paid in advance; or
    (ii) The requester has previously failed to pay a previously 
assessed Privacy Act fee in a timely fashion (i.e., within 30 days of 
the date of the billing). In such cases, the requester will be required 
to pay the full amount outstanding plus any applicable interest as 
provided by paragraph (c) of this section and to make an advance payment 
of the full amount of the determined fee before CIGIE begins to process 
a new request for additional copies.
    (c) Interest charges. For additional copies provided to requester 
that result in fees assessed, CIGIE will begin levying interest charges 
on an unpaid balance starting on the 31st day following the day on which 
the billing was sent. Interest will be assessed at the rate prescribed 
under 31 U.S.C. 3717 and will accrue from the date of the billing.
    (d) Payment address. Payment of fees should be made by either a 
personal check, bank draft or a money order that is payable to the 
Department of the Treasury of the United States and mailed or delivered 
to: Privacy Officer, Council of the Inspectors General on Integrity and 
Efficiency, 1717 H Street NW., Suite 825, Washington, DC 20006.



Sec.  9801.208  Requests for accounting of record disclosures.

    (a) How made and addressed. Except where accountings of disclosures 
are not required to be kept (as stated in paragraph (b) of this 
section), a requester may request an accounting of any disclosure that 
has been made by CIGIE to another person, organization, or agency of any 
record about the requester. This accounting contains the date, nature, 
and purpose of each disclosure, as well as the name and address of the 
person, organization, or agency to which the disclosure was made. A 
requester seeking an accounting of record disclosures must follow the 
procedures set forth for access to records in Sec.  9801.201(a), (b)(1) 
and (2), (c), and (d).
    (b) Where accountings are not required. CIGIE is not required to 
provide accountings to requesters where they relate to:
    (1) Disclosures for which accountings are not required to be kept, 
including disclosures that are made to officers and employees of CIGIE 
and disclosures that are made under the FOIA. For purposes of this part, 
officers and employees of CIGIE includes, in part, CIGIE's membership, 
as addressed in section 11 of the Inspector General Act, when such 
members are acting in their capacity as CIGIE members;
    (2) Disclosures made to law enforcement agencies for authorized law 
enforcement activities in response to written requests from those law 
enforcement agencies specifying the law enforcement activities for which 
the disclosures are sought; or
    (3) Disclosures made from law enforcement systems of records that 
have been exempted from accounting requirements.



                     Subpart C_Amendment of Records



Sec.  9801.301  Requests for amendment of record.

    (a) How addressed. A requester seeking to amend a record or records 
pertaining to requester in a CIGIE system of records should submit a 
written request that includes the words ``Privacy Act Amendment 
Request'' on both the envelope and at the top of the request letter to 
the Executive Director, Council of the Inspectors General on Integrity 
and Efficiency, 1717 H Street NW., Suite 825, Washington, DC 20006. 
Records not subject to the Privacy Act will not be amended in accordance 
with these provisions.
    (b) Contents of request. A request to amend a record in a CIGIE 
system of records must include:
    (1) The name of the system of records and a brief description of the 
record proposed for amendment. In the event the request to amend the 
record is the result of the requester having gained access to the record 
in accordance with the provisions concerning access to records as set 
forth in subpart B of this part, copies of previous correspondence 
between the requester and CIGIE will serve in lieu of a separate 
description of the record.
    (2) The exact portion of the record the requester seeks to have 
amended

[[Page 1144]]

should be indicated clearly. If possible, proposed alternative language 
should be set forth, or, at a minimum, the reasons why the requester 
believes the record is not accurate, relevant, timely, or complete 
should be set forth with enough particularity to permit CIGIE to not 
only understand the requester's basis for the request, but also to make 
an appropriate amendment to the record.
    (c) Burden of proof. The requester has the burden of proof when 
seeking the amendment of a record. The requester must furnish sufficient 
facts to persuade the appropriate system manager of the inaccuracy, 
irrelevance, untimeliness, or incompleteness of the record.
    (d) Identification requirement. When the requester's identity has 
been previously verified pursuant to Sec.  9801.201, further 
verification of identity is not required as long as the communication 
does not suggest a need for verification. If the requester's identity 
has not been previously verified, the appropriate system manager may 
require identification validation as described in Sec.  9801.201.

[81 FR 86563, Dec. 1, 2016, as amended at 82 FR 51334, Nov. 6, 2017]



Sec.  9801.302  Response to requests.

    (a) Time limit for acknowledging a request for amendment. To the 
extent possible, CIGIE will acknowledge receipt of a request to amend a 
record or records within 10 working days.
    (b) Determination on an amendment request. The decision of CIGIE in 
response to a request for amendment of a record in a system of records 
may grant in whole or deny any part of the request to amend the record.
    (1) If CIGIE grants the request, the appropriate system manager will 
amend the record(s) and provide a copy of the amended record(s) to the 
requester. To the extent an accounting of disclosure has been 
maintained, the system manager shall advise all previous recipients of 
the record that an amendment has been made and give the substance of the 
amendment. Where practicable, the system manager shall send a copy of 
the amended record to previous recipients.
    (2) If CIGIE denies the request in whole or in part, the reasons for 
the denial will be stated in the response letter. In addition, the 
response letter will state:
    (i) The name and address of the official with whom an appeal of the 
denial may be lodged; and
    (ii) A description of any other procedures which may be required of 
the requester in order to process the appeal.



Sec.  9801.303  Appeal from adverse determination on amendment.

    (a) How addressed. A requester may submit a written appeal of the 
decision by CIGIE to deny an initial request to amend a record in a 
CIGIE system of records to the Chairperson, Council of the Inspectors 
General on Integrity and Efficiency, 1717 H Street NW., Suite 825, 
Washington, DC 20006. The words ``Privacy Act Appeal'' should be 
included on the envelope and at the top of the letter of appeal.
    (b) Deadline and content. The appeal must be received by CIGIE 
within 60 days of the date of the letter denying the request and should 
contain a brief description of the record(s) involved or copies of the 
correspondence from CIGIE and the reasons why the requester believes 
that the disputed information should be amended.



Sec.  9801.304  Response to appeal of adverse determination on amendment; 
disagreement statements.

    (a) Response timing. The Chairperson should make a final 
determination in writing not later than 30 days from the date the appeal 
was received. The 30-day period may be extended for good cause. Notice 
of the extension and the reasons therefor will be sent to the requester 
within the 30-day period.
    (b) Amendment granted. If the Chairperson determines that the 
record(s) should be amended in accordance with the requester's request, 
the Chairperson will take the necessary steps to advise the requester 
and to direct the appropriate system manager:
    (1) To amend the record(s); and
    (2) To notify previous recipients of the record(s) for which there 
is an accounting of disclosure that the record(s) have been amended.
    (c) Denial affirmed. If the appeal decision does not grant in full 
the request for amendment, the decision letter will

[[Page 1145]]

notify the requester that the requester may:
    (1) Obtain judicial review of the decision in accordance with the 
terms of the Privacy Act at 5 U.S.C. 552a(g); and
    (2) File a statement setting forth their reasons for disagreeing 
with the decision.
    (d) Requester's disagreement statement. A requester's disagreement 
statement must be concise. CIGIE has the authority to determine the 
``conciseness'' of the statement, taking into account the scope of the 
disagreement and the complexity of the issues.
    (e) Provision of requester's disagreement statement. In any 
disclosure of information about which an individual has filed a proper 
statement of disagreement, CIGIE will clearly note any disputed 
portion(s) of the record(s) and will provide a copy of the statement to 
persons or other agencies to whom the disputed record or records has 
been disclosed and for whom an accounting of disclosure has been 
maintained. A concise statement of the reasons for not making the 
amendments requested may also be provided.



Sec.  9801.305  Assistance in preparing request to amend a record 
or to appeal an initial adverse determination.

    Requesters may seek assistance in preparing a request to amend a 
record or an appeal of an initial adverse determination, or to learn 
further of the provisions for judicial review, by contacting CIGIE's 
Privacy Officer by email at [email protected] or by mail at Privacy 
Officer, Council of the Inspectors General on Integrity and Efficiency, 
1717 H Street NW., Suite 825, Washington, DC 20006.



                          Subpart D_Exemptions

    Source: 82 FR 51334, Nov. 6, 2017, unless otherwise noted.



Sec.  9801.401  Exemptions.

    (a) General policy. Systems of records maintained by CIGIE are 
authorized to be exempted from certain provisions of the Privacy Act 
under the general and specific exemptions set forth in the Privacy Act. 
In utilizing these exemptions, CIGIE is exempting only those portions of 
systems that are necessary for the proper functioning of CIGIE and that 
are consistent with the Privacy Act. Where compliance would not appear 
to interfere with or adversely affect the law enforcement process, and/
or where it may be appropriate to permit individuals to contest the 
accuracy of the information collected, e.g., public source materials, 
the applicable exemption may be waived, either partially or totally, by 
CIGIE, at the sole discretion of CIGIE, as appropriate.
    (b) Specific system of records exempted under (j)(2), (k)(1), and 
(k)(2). The system of records maintained in connection with CIGIE's 
Integrity Committee, the Integrity Committee Management System (CIGIE-
04), is subject to general exemption under 5 U.S.C. 552a(j)(2) and the 
specific exemptions under 5 U.S.C. 552a(k)(1) and (2). These exemptions 
apply only to the extent that information in this system is subject to 
exemption pursuant to 5 U.S.C. 552a(j)(2), (k)(1) and (k)(2). Where 
compliance would not appear to interfere with or adversely affect the 
law enforcement process, and/or where it may be appropriate to permit 
individuals to contest the accuracy of the information collected, e.g., 
public source materials, the applicable exemption may be waived, either 
partially or totally, by CIGIE, at the sole discretion of CIGIE, as 
appropriate.
    (1) Pursuant to the provisions of 5 U.S.C. 552a(j)(2), CIGIE-04 is 
exempt from the following provisions of the Privacy Act: 5 U.S.C. 
552a(c)(3) and (c)(4); (d); (e)(1), (e)(2), (e)(3), (e)(4)(G)-(H), 
(e)(5), and (e)(8); (f); and (g).
    (2) Pursuant to the provisions of 5 U.S.C. 552a(k)(1) and (2), 
CIGIE-04 is exempt from the following provisions of the Privacy Act: 5 
U.S.C. 552a(c)(3); (d); (e)(1) and (e)(4)(G)-(H); and (f).
    (3) Exemptions from the particular subsections are justified for the 
following reasons:
    (i) From subsection (c)(3) because release of disclosure accounting 
could alert the subjects of an investigation of an actual or potential 
criminal, civil, or regulatory violation to the existence of the 
investigation and the fact that they are subjects of the investigation, 
and reveal investigative interest by not only CIGIE, through the IC, but 
also by

[[Page 1146]]

external agencies such as the Public Integrity Section of the Department 
of Justice. Because release of such information to the subjects of an 
investigation would provide them with significant information concerning 
the nature of the investigation, release could result in the destruction 
of documentary evidence, improper influencing of witnesses, and other 
activities that could impede or compromise the investigation. In 
addition, accounting for each disclosure could result in the release of 
properly classified information which would compromise the national 
defense or disrupt foreign policy.
    (ii) From subsection (c)(4) because this system is exempt from the 
access provisions of subsection (d) pursuant to subsections (j) and (k) 
of the Privacy Act.
    (iii) From the access and amendment provisions of subsection (d) 
because access to the records contained in this system of records could 
inform the subjects of an investigation of an actual or potential 
criminal, civil, or regulatory violation of the existence of that 
investigation and of the nature and scope of the information and 
evidence obtained as to their activities. Such awareness by the subjects 
could prevent the successful completion of an investigation and/or lead 
to the improper influencing of witnesses, the destruction of evidence, 
or fabricated testimony. In addition, granting access to such 
information could disclose security-sensitive or confidential business 
information or information that would constitute an unwarranted invasion 
of the personal privacy of third parties. Finally, access to the records 
could result in the release of classified information which would 
compromise the national defense or disrupt foreign policy. Amendment of 
the records would interfere with ongoing investigations and law 
enforcement activities and impose an impossible administrative burden by 
requiring investigations to be continuously reinvestigated.
    (iv) From subsection (e)(1) because the application of this 
provision could impair investigations and interfere with the law 
enforcement responsibilities of CIGIE through the IC for the following 
reasons:
    (A) It is not possible to detect relevance or necessity of specific 
information in the early stages of a civil, criminal, or other law 
enforcement investigation, case, or matter, including investigations in 
which use is made of classified information. Relevance and necessity are 
questions of judgment and timing, and it is only after the information 
is evaluated that the relevance and necessity of such information can be 
established.
    (B) During the course of any investigation, CIGIE, through the IC, 
may obtain information concerning actual or potential violations of laws 
other than those within the scope of its jurisdiction. In the interest 
of effective law enforcement, CIGIE should retain this information, as 
it may aid in establishing patterns of criminal activity and can provide 
valuable leads for Federal and other law enforcement agencies.
    (C) In interviewing individuals or obtaining other forms of evidence 
during an investigation, information may be supplied to an investigator 
that relates to matters incidental to the primary purpose of the 
investigation but which may relate also to matters under the 
investigative jurisdiction of another agency. Such information cannot 
readily be segregated.
    (v) From subsection (e)(2) because, in some instances, the 
application of this provision would present a serious impediment to law 
enforcement for the following reasons:
    (A) The subjects of an investigation would be placed on notice as to 
the existence of an investigation and would therefore be able to avoid 
detection or apprehension, to improperly influence witnesses, to destroy 
evidence, or to fabricate testimony.
    (B) In certain circumstances the subjects of an investigation cannot 
be required to provide information to investigators, and information 
relating to their illegal acts, violations of rules of conduct, or any 
other misconduct must be obtained from other sources.
    (C) In any investigation it is necessary to obtain evidence from a 
variety of sources other than the subjects of the investigation.
    (vi) From subsection (e)(3) because the application of this 
provision would

[[Page 1147]]

provide the subjects of an investigation with substantial information 
which could impede or compromise the investigation.
    (vii) From subsection (e)(4)(G)-(I) because this system of records 
is exempt from the access provisions of subsection (d).
    (viii) From subsection (e)(5) because the application of this 
provision may prevent the collection of any data not shown to be 
accurate, relevant, timely, and complete at the moment it is collected. 
In the collection of information for law enforcement purposes, it is 
impossible to determine in advance what information is accurate, 
relevant, timely, and complete. Material which may seem unrelated, 
irrelevant, or incomplete when collected may take on added meaning or 
significance as an investigation progresses. The restrictions of this 
provision could interfere with the preparation of a complete 
investigative report, and thereby impede effective law enforcement.
    (ix) From subsection (e)(8) because the application of this 
provision could prematurely reveal an ongoing criminal investigation to 
the subjects of an investigation and could reveal investigative 
techniques, procedures, or evidence.
    (x) From subsection (f) because CIGIE's rules are inapplicable to 
those portions of the system that are exempt and would place the burden 
on CIGIE of either confirming or denying the existence of a record 
pertaining to a requesting individual, which might in itself provide an 
answer to that individual relating to an ongoing investigation. The 
conduct of a successful investigation leading to the indictment of a 
criminal offender precludes the applicability of established agency 
rules relating to verification of record, disclosure of the record to 
that individual, and record amendment procedures for this record system.
    (xi) From subsection (g) to the extent that this system is exempt 
from the access and amendment provisions of subsection (d) pursuant to 
subsections (j)(2), (k)(1), and (k)(2) of the Privacy Act.

                       PARTS 9802	9899 [RESERVED]

[[Page 1149]]



    CHAPTER XCIX--MILITARY COMPENSATION AND RETIREMENT MODERNIZATION 
                               COMMISSION




  --------------------------------------------------------------------
Part                                                                Page
9901            Disclosure of records and information.......        1151
9902-9999

 [Reserved]

[[Page 1151]]



PART 9901_DISCLOSURE OF RECORDS AND INFORMATION--Table of Contents



                       Freedom of Information Act

Sec.
9901.1 Authority, purpose, and scope.
9901.2 Proactive disclosure of records.
9901.3 Requests for records.
9901.4 Timing.
9901.5 Response to requests.
9901.6 Production of records.
9901.7 Appeals.
9901.8 Fees.

    Authority: National Defense Authorization Act for Fiscal Year 2013, 
Pub. L. 112-239, Subtitle H, 126 Stat. 1632, 1787 (2013) (amended by 
National Defense Authorization Act for Fiscal Year 2014, Pub. L. 113-66, 
Sec. 1095, 127 Stat. 672, 878 (2013)); 5 U.S.C. 552.

    Source: 79 FR 54567, Sept. 12, 2014, unless otherwise noted.

                       Freedom of Information Act



Sec.  9901.1  Authority, purpose, and scope.

    (a) Authority. This information is furnished for the guidance of the 
public and in compliance with the requirements of the Freedom of 
Information Act (FOIA), 5 U.S.C. 552. This subpart should be read in 
conjunction with FOIA.
    (b) Purpose. (1) The National Defense Authorization Act for Fiscal 
Year 2013, Public Law 112-239, Subtitle H, 126 Stat. 1632, 1787 (2013) 
(amended by National Defense Authorization Act for Fiscal Year 2014, 
Pub. L. 113-66, Sec. 1095, 127 Stat. 672, 878 (2013)), established the 
Military Compensation and Retirement Modernization Commission (MCRMC). 
MCRMC's purpose, pursuant to its enabling statute, is to conduct a 
review of the military compensation and retirement systems and to make 
recommendations to modernize those systems to:
    (i) Ensure the long-term viability of the All-Volunteer Force by 
sustaining the required human resources of that force during all levels 
of conflict and economic conditions;
    (ii) Enable the quality of life for members of the Armed Forces and 
the other uniformed services and their families in a manner that fosters 
successful recruitment, retention, and careers for members of the Armed 
Forces and the other uniformed services; and
    (iii) Modernize and achieve fiscal sustainability for the 
compensation and retirement systems for the Armed Forces and the other 
uniformed services for the 21st century.
    (2) The Commission will make its recommendations only after it 
examines all laws, policies and practices of the Federal Government that 
result in any direct payment of authorized or appropriated funds to 
current and former members (veteran and retired) of the uniformed 
services, including the reserve components of those services, and the 
spouses, family members, children, survivors, and other persons 
authorized to receive such payments as a result of their connection to 
Service members.
    (c) Agency. MCRMC is an independent establishment of the Federal 
government as defined by Sections 104 and 105 of Title 5 of the U.S. 
Code, and a temporary organization under section 3161 of such title. The 
Commission is composed of nine members, appointed by the President and 
Congressional leadership. Members of this Commission are deemed to be 
Federal employees. MCRMC maintains its headquarters in Arlington, 
Virginia.
    (d) Records on individuals. MCRMC does not maintain any of its own 
systems of records on individuals. Pursuant to a Memorandum of 
Understanding between the Department of Defense, Director of 
Administration & Management and MCRMC, the Department of Defense, 
Washington Headquarters Services is responsible for MCRMC personnel 
records management including compliance with the Privacy Act.

[79 FR 54567, Sept. 12, 2014, as amended at 79 FR 63497, Oct. 24, 2014]



Sec.  9901.2  Proactive disclosure of records.

    (a) Proactive disclosure. Subject to the application of FOIA 
exemptions, 5 U.S.C. 552(b), records that are required by FOIA to be 
made available for public inspection and copying and records identified 
by the agency as records of interest to the public, including Commission 
hearing schedules, testimony, minutes, press releases, and documents

[[Page 1152]]

provided to the Commission, are available on the MCRMC Web site at 
http://www.mcrmc.gov.
    (b) Final report. The Commission's final report will be available on 
its Web site.
    (c) Released records. The Commission will post records released in 
response to FOIA requests on its Web site.



Sec.  9901.3  Requests for records.

    (a) Generally. Many documents are available on the MCRMC Web site 
and MCRMC encourages requesters to visit the Web site before making a 
request for records pursuant to this subpart. MCRMC will provide records 
to individual requesters in response to FOIA requests for records not 
available on its Web site.
    (b) Electronic or written requests required. For records not 
available on the Web site, requesters wishing to obtain information from 
MCRMC should submit a request on the MCRMC Web site. If a computer is 
not available to the requester, a written request may be made to the 
MCRMC FOIA Officer. Such requests should be addressed to: FOIA Officer, 
Military Compensation and Retirement Modernization Commission, Post 
Office Box 13170, Arlington, VA 22209. As there may be delays in mail 
delivery, it is advisable to send the request via facsimile to (703) 
697-8330 or email to [email protected]. MCRMC will communicate with the 
requester by email unless he or she specifies otherwise.
    (c) Contents of request. Requests must include the following:
    (1) A statement that the request is being made under FOIA, the 
requester's full name and address, a telephone number at which the 
requester can be reached during normal business hours, and an email 
address for the requester, if the requester has one;
    (2) A description of the records sought in enough detail to allow 
the records to be located with a reasonable amount of effort. The 
request must identify/describe the records sought and include 
information such as date, title or name, author, recipient, and subject 
matter of the records sought, where possible;
    (3) If submitting the request as an educational institution, a non-
commercial scientific institution, or a representative of the news 
media, the request must specifically identify the organization on which 
the status is based, and if a free-lance representative of the news 
media, the requester should submit a history of past publications and/or 
demonstrate a solid basis for expecting publication through a news-media 
entity;
    (4) A fee waiver, if applicable; and
    (5) If the request is made by mail, the words ``FOIA REQUEST'' or 
``REQUEST FOR RECORDS'' must be clearly marked on the cover letter, 
letter, and envelope.
    (d) Perfected requests. MCRMC will process only perfected requests. 
A perfected request must meet all of the requirements of this subpart.

[79 FR 63498, Oct. 24, 2014]



Sec.  9901.4  Timing.

    (a) Acknowledgment of request. MCRMC will provide an acknowledgment 
notice with an individualized tracking number and a summary of the 
records requested to each requester within 10 working days after 
receiving a request.
    (b) Response time. Every effort will be made to respond to the 
request within 20 days (excluding Saturdays, Sundays, and legal public 
holidays) of receiving the request.
    (c) Appeal. MCRMC will make a decision with respect to an appeal of 
a denial of a request for records within 20 days (excluding Saturdays, 
Sundays, and legal public holidays) after receipt of the appeal.
    (d) Clarification/Additional information. If a request for records 
does not reasonably describe the records sought, MCRMC will contact the 
requester to seek additional information. Requesters may discuss their 
request with the MCRMC FOIA Public Liaison and modify the request. The 
MCRMC FOIA Public Liaison may be reached via telephone at (703) 692-2080 
or by U.S. Mail at FOIA Public Liaison, Military Compensation and 
Retirement Modernization Commission, Post Office Box 13170, Arlington, 
VA 22209. As there may be delays in mail delivery, it is advisable to 
send the request via facsimile to (703) 697-8330 or email to 
[email protected]. MCRMC may make one

[[Page 1153]]

request for clarification/additional information to the requester for 
information and suspend the 20-day period while awaiting such 
information. When a requester fails to clarify by providing additional 
information, MCRMC will notify the requester that the request has not 
been properly made and that no further action will be taken on the 
request. The requester may appeal such a decision under the procedures 
set forth in subpart 9901.7.
    (e) Expedited processing. A request for expedited processing must 
accompany the initial request for records. It must be a written 
statement of compelling need for expedited processing, stating that the 
facts are true and correct to the best of the requester's knowledge and 
belief. In determining whether processing should be expedited, the FOIA 
Officer may consider whether:
    (1) Failure to obtain the requested records on an expedited basis 
could reasonably be expected to pose an imminent threat to a person's 
life or physical safety; or
    (2) With respect to a request made by a person primarily engaged in 
disseminating information, there is an urgency to inform the public 
about actual or alleged Federal government activity.
    (f) Extension for unusual circumstances. If MCRMC determines that 
unusual circumstances exist, the time limits described in paragraphs (b) 
and (c) of this subpart may be extended by no more than 10 days 
(excluding Saturdays, Sunday, and legal public holidays) by providing 
written notice of the extension to the requester. The time limit may be 
extended if the request cannot be processed within the time limits of 
this subpart due to the need to search, collect, and examine a 
voluminous amount of records, coordinate, or consult with another 
agency. The requester will be given an opportunity to limit the scope of 
the request or to arrange with MCRMC an alternative time frame for 
processing the request. The FOIA Officer shall include with the notice 
of extension a brief statement of the reason for the extension and the 
date the FOIA Officer expects to make a determination.



Sec.  9901.5  Response to requests.

    (a) Authority to grant or deny requests. The MCRMC FOIA Officer is 
authorized to grant or deny any request for MCRMC records.
    (b) Grant of request. If the MCRMC FOIA Officer grants a request, in 
full or in part, the FOIA Officer shall promptly provide the requester 
written notice of the decision. The requester will be notified whether 
the request has been assigned to the Standard or Complex track, pursuant 
to paragraph (d) of subpart 9901.6.
    (c) Request denial. If the FOIA Officer denies a fee waiver request 
or finds there are no responsive records subject to FOIA, the FOIA 
Officer will notify the requester of that fact. If the FOIA Officer 
denies the request, in full or part, the FOIA Officer will provide the 
requester written notice of the denial, which will include a description 
of the material withheld, the FOIA exemption under which the information 
was withheld, and the approximate number of pages of information 
withheld. When a portion of a record is withheld, the amount of 
information redacted and the claimed exemption will be noted at the 
place in the record where the redaction was made. The notice will also 
describe the procedure for filing an appeal.
    (d) Referral of records. When a responsive record that originated in 
another agency is located, the responsive record will be referred to its 
originating agency for response.
    (e) Referral of request. The requester will be notified when all or 
part of a request is referred to another agency and will be given 
contact information for the FOIA office of the agency to which the 
request and responsive record were referred.



Sec.  9901.6  Production of records.

    (a) Generally. MCRMC will apply a presumption of openness when 
processing FOIA requests and will only withhold exempt information if it 
reasonably foresees that disclosure would harm an interest protected by 
one of the statutory exemptions or if disclosure is prohibited by law. 
Before withholding information, MCRMC will conduct a foreseeable harm 
analysis,

[[Page 1154]]

which clearly identifies the harm that would occur with disclosure.
    (b) Large requests. If a request involves a voluminous amount of 
material or searches in multiple locations, MCRMC will provide the 
requester with interim responses, releasing the information on a rolling 
basis.
    (c) Copies. MCRMC will maintain copies of records that have been the 
subject of any pending or closed request, appeal, or lawsuit under the 
FOIA, to include all correspondence pertaining to the subject request, 
until disposition is authorized under the National Archives and Records 
Administration's General Records Schedule 14.
    (d) Multi-Track processing. (1) MCRMC uses a multi-track system to 
process FOIA requests. This means that a FOIA request is processed based 
on its complexity. When MCRMC receives a request it will be assigned to 
the Standard or Complex track.
    (i) Standard Track. Requests that are routine and require little 
search time, review, or analysis are assigned to the Standard Track. 
MCRMC will respond to these requests in the order in which they are 
received and make every effort to respond no later than 20 working days 
after receipt of the request.
    (ii) Complex Track. Requests that are non-routine are assigned to 
the Complex Track if the response may:
    (A) Be voluminous;
    (B) Require an unusually high level of effort for search, review, or 
duplication; or
    (C) Cause an undue disruption to the day-to-day activities of MCRMC 
in carrying out its statutory responsibilities.
    (2) The requester will be notified if the request is assigned to the 
Complex Track and will be given an estimate of the time for response. 
MCRMC will respond to Complex Track requests as soon as practicable. 
MCRMC may discuss with the requester the possibility of reformulating 
the request to reduce processing time.



Sec.  9901.7  Appeals.

    (a) Initiating appeals. Requesters not satisfied with the FOIA 
Officer's decision may request review of the decision by the MCRMC FOIA 
Appellate Authority. The appeal must be received within 60 days of the 
date of the FOIA Officer's decision. Appeals may be made through the 
MCRMC Web site at the FOIA tab or in writing, addressed to: FOIA 
Appellate Authority, Military Compensation and Retirement Modernization 
Commission, Post Office Box 13170, Arlington, VA 22209. As there may be 
delays in mail delivery, it is advisable to send the request via 
facsimile to (703) 697-8330 or email to [email protected]. The requester 
may wish to explain why the Appellate Authority should grant the appeal, 
to the extent that an explanation could assist the Appellate Authority 
in making a decision on the appeal.
    (b) Appeal decisions. MCRMC's Chief FOIA Officer will decide the 
appeal within 20 days (except Saturdays, Sundays, and legal public 
holidays) from the date it receives the appeal. If the appeal is denied, 
MCRMC will notify the requester in writing of the decision and the 
provisions for judicial review. If the appeal is granted, the Chief FOIA 
Officer will notify the requester in writing.
    (c) Mediation. A response to an appeal will advise the requester of 
the 2007 FOIA amendments, which created the Office of Government 
Information Services (OGIS), which offers mediation services to resolve 
disputes between FOIA requesters and Federal agencies as a non-exclusive 
alternative to litigation. A requester may contact OGIS at: Office of 
Government Information Services, National Archives and Records 
Administration, 8601 Adelphi Road, College Park, MD 20740; email: 
[email protected]; telephone: (202) 741-5770; facsimile: (202) 741-5769; 
toll free telephone: (877) 684-6448.



Sec.  9901.8  Fees.

    (a) Generally. MCRMC may charge reasonable fees that recoup the 
allowable direct costs incurred in responding to FOIA requests. MCRMC 
may assess charges for time spent searching for records even if MCRMC is 
unable to locate the records or if the records are located and 
determined to be exempt from disclosure.
    (1) Timing. MCRMC may toll the response time limit while awaiting 
information from the requester regarding fee assessment. Time limits 
resume

[[Page 1155]]

upon MCRMC's receipt of a response from the requester.
    (b) Definitions. For purposes of this subpart:
    (1) All other request means a request from or on behalf of a person 
who does not qualify as a commercial use requester, an educational 
institution requester, a non-commercial scientific institution 
requester, or a representative of the news media requester.
    (2) Commercial use request means a request from or on behalf of a 
person who seeks information for a use or purpose that furthers the 
requester's or other person's commercial, trade, or profit interests.
    (3) Direct costs means those costs incurred searching for and 
duplicating (and, in the case of commercial use requests, reviewing) 
documents in response to a FOIA request. Direct costs include, for 
example, salaries of employees who perform the work and costs of 
conducting large-scale computer searches. Direct costs do not include, 
for example, overhead expenses such as the costs of space, and of 
heating or lighting a facility.
    (4) Duplication means to copy records in response to a FOIA request. 
Copies can take the form of paper, audio-visual materials, or electronic 
records, among others.
    (5) Educational institution is any school that operates a program of 
scholarly research. Records requested with the intention of fulfilling 
credit requirements or completion of individual research goals do not 
qualify as a request by an educational institution.
    (6) Non-commercial scientific institution means an institution that 
is not operated on a commercial basis and operates solely for the 
purpose of conducting scientific research, the results of which are not 
intended to promote any particular product or industry.
    (7) Representative of the news media means any person or entity that 
gathers information of potential interest to a segment of the public, 
uses its editorial skills to turn raw materials into a distinct work, 
and distributes that work to an audience.
    (8) Review means to examine a record to determine whether any 
portion of the record may be withheld, and to process a record for 
disclosure.
    (9) Search means to look for and retrieve records for a FOIA 
request, to include looking page-by-page or line-by-line to identify 
responsive material within individual records. Search includes time 
spent looking for records even if responsive records are not found.
    (c) Reduction of fees. (1) MCRMC will not charge fees for any 
request where the fees would total less than $50.
    (2) MCRMC will provide, except for commercial use requesters, 
without charge, the first 100 pages of duplication (or the cost 
equivalent for other media) and the first two hours of a search.
    (3) MCRMC shall not assess search fees if the agency fails to comply 
with time limits set forth in subpart 9901.4 if no unusual 
circumstances, as defined in subpart 9901.4, apply to the processing of 
the request.
    (d) Waiver of fees. MCRMC shall waive all or part of any fee 
provided for in this subpart where the FOIA Officer determines that 
disclosure of the information is in the public interest because it is 
likely to contribute significantly to public understanding of the 
operations or activities of the Government and the records sought are 
not primarily in the commercial interest of the requester. Requests for 
a fee waiver must explain how the information requested contributes to 
the public interest. In determining whether a fee should be waived, the 
FOIA Officer shall consider whether the requester has demonstrated that:
    (1) The subject matter of the request specifically concerns 
identifiable operations or activities of the Government;
    (2) The information is already in the public domain;
    (3) Disclosure is primarily in the commercial interest of the 
requester; and
    (4) Disclosure of the information would significantly enhance the 
public's understanding of the subject matter.
    (e) Categories of requesters. Subject to the limitations of this 
subpart, MCRMC will assess fees for categories of requesters as follows:

[[Page 1156]]

    (1) Commercial use requesters pay for search, review, and 
duplication.
    (2) Educational institutions, noncommercial scientific institutions 
and representatives of the news media pay only for duplication 
(excluding charges for the first 100 pages or its cost equivalent).
    (3) All other requesters pay for search (excluding the first two 
hours) and duplication (excluding charges for the first 100 pages or its 
cost equivalent).
    (f) Charges. In responding to FOIA requests, MCRMC will charge the 
following fees unless a waiver or reduction of fees has been requested 
and granted under this subpart. The fee amounts provided below account 
for direct costs.
    (1) Search and review. For each quarter hour spent by MCRMC 
searching for requested records, including electronic searches, or 
reviewing records, the fee will be $10.77.
    (2) Duplication. Duplication fees will be charged to all requesters, 
subject to the restrictions of this subpart. MCRMC will honor a 
requester's preference for receiving a record in a particular format 
where it is readily reproducible in that form or format. Where 
photocopies are supplied, MCRMC will provide one copy per request at a 
cost of five cents per page. For copies of records produced on tapes, 
disks, or other electronic media, MCRMC will charge the direct costs of 
producing the copy, including operator time. Where paper documents must 
be scanned to comply with a requester's preference to receive the 
records in an electronic format, the requester shall pay the direct 
costs associated with scanning those materials. For other forms of 
duplication, MCRMC will charge the direct costs.
    (3) Special charges. MCRMC shall recover the full cost of providing 
special services, such as sending records by an overnight delivery 
service, to the extent that MCRMC elects to provide them, as special 
services are not required by FOIA.
    (4) Aggregating requests. When the FOIA Officer reasonably believes 
that a requester or a group of requesters acting in concert is/are 
attempting to divide a request into a series of requests for the purpose 
of avoiding fees, the FOIA Officer may aggregate those requests and 
charge fees accordingly.
    (5) Advance payment. When a requester has previously failed to pay 
fees in a timely fashion or MCRMC has determined that the fee will 
exceed $250, MCRMC may require advance payment of fees.
    (6) Remittances. Payment shall be made in the form of check or money 
order made payable to the Treasury of the United States. At the time the 
FOIA Officer notifies a requester of the applicable fees, the FOIA 
Officer shall inform the requester of where to send the payment.

                       PARTS 9902	9999 [RESERVED]

[[Page 1157]]



                CHAPTER C--NATIONAL COUNCIL ON DISABILITY




  --------------------------------------------------------------------
Part                                                                Page
10000           Procedures for disclosure of records under 
                    the Freedom of Information Act..........        1159
10001           Implementation of the Privacy Act of 1974...        1168
10002           Implementation of the Government in the 
                    Sunshine Act............................        1170
10003-10049

 [Reserved]

[[Page 1159]]



PART 10000_PROCEDURES FOR DISCLOSURE OF RECORDS UNDER THE FREEDOM 
OF INFORMATION ACT--Table of Contents



Sec.
10000.1 Purpose and scope.
10000.2 Definitions.
10000.3 Availability of records.
10000.4 Categories of exemptions.
10000.5 Requests for records.
10000.6 Responsibility for responding to requests.
10000.7 Administrative appeals.
10000.8 Timeframe for Council's response to a FOIA request or 
          administrative appeal.
10000.9 Business information.
10000.10 Fees.

    Authority: 5 U.S.C. 552, as amended; E.O. 12600, 52 FR 23781, 3 CFR 
1987, 1987 Comp., p. 235; 3 CFR 235.

    Source: 80 FR 49118, Aug. 17, 2015, unless otherwise noted.



Sec.  10000.1  Purpose and scope.

    The regulations in this part implement the provisions of the FOIA.



Sec.  10000.2  Definitions.

    The following definitions apply to this part:
    Chairperson means the Chairperson of the Council, as appointed by 
the President, or any person to whom the Council has delegated authority 
for the matter concerned.
    Chief FOIA Officer means the senior official to whom the Council 
delegated responsibility for efficient and appropriate compliance with 
the FOIA, currently delegated to the General Counsel.
    Commercial use request means a FOIA request from or on behalf of a 
requester that seeks information for a use or purpose that furthers 
their commercial, trade, or profit interests, including pursuit of those 
interests through litigation.
    Confidential business information means trade secrets or 
confidential or privileged commercial or financial information submitted 
to the Council by a person that may be protected from disclosure under 
Exemption 4 of the FOIA.
    Council means the National Council on Disability, established by the 
Rehabilitation Act of 1973 (29 U.S.C. 780 et seq.), as amended, and 
amended by the Workforce Innovation and Opportunity Act (Pub. L. 113-
128) in 2014.
    Direct costs are those expenses that an agency incurs in searching 
for and duplicating (and, in the case of commercial use requests, 
reviewing) records in order to respond to a FOIA request. For example, 
direct costs include the salary of the employee performing the work 
(i.e., the basic rate of pay for the employee, plus 16 percent of that 
rate to cover benefits) and the cost of operating computers and other 
electronic equipment, such as photocopiers and scanners. Direct costs do 
not include overhead expenses such as the costs of space, and of heating 
or lighting a facility.
    Educational institution means a preschool, a public or private 
elementary or secondary school, an institution of undergraduate or 
graduate higher education, an institution of professional education, or 
an institution of vocational education, which operates a program or 
programs of scholarly research. A requester in this fee category must 
show that the request is authorized by, and is made under the auspices 
of, an educational institution and that the records are not sought for a 
commercial use, but rather are sought to further scholarly research. To 
fall within this fee category, the request must serve the scholarly 
research goals of the institution rather than an individual research 
goal.
    (1) Example 1. A request from a professor of geology at a university 
for records relating to soil erosion, written on letterhead of the 
Department of Geology, would be presumed to be from an educational 
institution.
    (2) Example 2. A request from the same professor of geology seeking 
drug information from the Food and Drug Administration in furtherance of 
a murder mystery he is writing would not be presumed to be an 
institutional request, regardless of whether it was written on 
institutional stationery.
    (3) Example 3. A student who makes a request in furtherance of the 
completion of a course of instruction would be presumed to be carrying 
out an individual research goal, rather than a scholarly research goal 
of the institution and would not qualify as part of this fee category.

[[Page 1160]]

    Fee waiver means the waiver or reduction of fees if a requester can 
demonstrate meeting the statutory standard that the information is in 
the public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the government 
and is not primarily in the commercial interest of the requester.
    FOIA means the Freedom of Information Act, 5 U.S.C. 552, as amended. 
The FOIA applies to requests for agency records.
    FOIA Officer means the individual to whom the Council has delegated 
authority to carry out the Council's day-to-day FOIA administration, 
currently delegated to the Council's Attorney Advisor.
    FOIA Public Liaison means the individual designated by the 
Chairperson to assist FOIA requesters with concerns about the Council's 
processing of their FOIA request, including assistance in resolving 
disputes, currently delegated to the Council's Attorney Advisor.
    Non-commercial scientific institution means an organization operated 
solely for the purpose of conducting scientific research, the results of 
which are not intended to promote any product or research, and not 
operated on a commercial basis.
    Person includes an individual, partnership, corporation, 
association, or public or private organization other than an agency.
    Record means any writing, drawing, map, recording, diskette, DVD, 
CD-ROM, tape, film, photograph, or other documentary material, 
regardless of medium, by which information is preserved, including 
documentary material stored electronically.
    Redact means delete or mark over.
    Representative of the news media is any person or entity organized 
and operated to publish or broadcast news to the public that actively 
gathers information of potential interest to a segment of the public, 
uses its editorial skills to turn the raw materials into a distinct 
work, and distributes that work to an audience. The term ``news'' means 
information that is about current events or that would be of current 
interest to the public. Examples of news media entities include 
television or radio stations that broadcast ``news'' to the public at 
large and publishers of periodicals that disseminate ``news'' and make 
their products available through a variety of means to the general 
public, including news organizations that disseminate solely on the 
Internet. A request for records supporting the news-dissemination 
function of the requester shall not be considered to be for a commercial 
use. ``Freelance'' journalists who demonstrate a solid basis for 
expecting publication through a news media entity shall be considered as 
a representative of the news media. A publishing contract would provide 
the clearest evidence that publication is expected; however, components 
shall also consider a requester's past publication record in making this 
determination.
    Requester category means one of the three categories defined by the 
Uniform Freedom of Information Fee Schedule and Guidelines published by 
the Office of Management and Budget (OMB Fee Guidelines) in which 
requesters will be placed for the purpose of determining what if any 
fees for search, review, or duplication may be assessed. They are:
    (1) Commercial requesters;
    (2) Non-commercial scientific or educational institutions or 
representatives of the news media; and
    (3) All other requesters.
    Submitter means any person or entity from whom the Council obtains 
confidential or privileged business information, directly or indirectly.
    Unusual circumstances exist when:
    (1) The need to search for and collect the requested records from 
physically separate facilities;
    (2) The need to search for, collect and appropriately examine a 
voluminous amount of separate and distinct records which are demanded in 
a single request; or
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request.

[80 FR 49118, Aug. 17, 2015, as amended at 81 FR 93792, Dec. 22, 2016]

[[Page 1161]]



Sec.  10000.3  Availability of records.

    Records that are required by the FOIA to be made available for 
public inspection and copying may be accessed through the Agency's Web 
site at www.ncd.gov. The Council is responsible for determining which of 
its records are required to be made publicly available, as well as 
identifying additional records of interest to the public that are 
appropriate for public disclosure, and for posting and indexing such 
records. The Council shall ensure that its Web site of posted records 
and indices is reviewed and updated on an ongoing basis. The Council's 
FOIA Public Liaison can assist individuals in locating records 
particular to a component.



Sec.  10000.4  Categories of exemptions.

    (a) The FOIA does not require disclosure of matters that are:
    (1) Specifically authorized under criteria established by an 
executive order to be kept secret in the interest of national defense or 
foreign policy and are, in fact, properly classified under executive 
order;
    (2) Related solely to the internal personnel rules and practices of 
the Council;
    (3) Specifically exempted from disclosure by statute (other than the 
Government in the Sunshine Act, 5 U.S.C. 552b, as amended), provided 
that such statute:
    (i)(A) Requires that the matters be withheld from the public in such 
a manner as to leave no discretion on the issue; or
    (B) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld; and
    (ii) If enacted after October 28, 2009, specifically cites to 
Exemption 3 of the FOIA, 5 U.S.C. 552(b)(3);
    (4) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (5) Inter-agency or intra-agency memoranda or letters, which would 
not be available at law to a party other than an agency in litigation 
with the Council;
    (6) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trial or impartial 
adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a state, local, or foreign agency or 
authority or any private institution that furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal investigation, or by an agency conducting a lawful 
national security intelligence investigation, information furnished by a 
confidential source;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions; 
or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.



Sec.  10000.5  Request for records.

    (a) You may request copies of records under this part by email to 
[email protected] or in writing addressed to FOIA Officer, National Council 
on Disability, 1331 F Street NW., Suite 850, Washington, DC 20004.
    (b) Your request shall reasonably describe the records sought with 
sufficient specificity, and when possible, include names, dates, and 
subject matter, in order to permit the FOIA Officer to

[[Page 1162]]

locate the records with a reasonable amount of effort. If the FOIA 
Officer cannot locate responsive records based on your written 
description, you will be notified and advised that further identifying 
information is necessary before the request can be fulfilled. Although 
requests are considered either FOIA or Privacy Act requests, the Council 
processes requests for records in accordance with both laws so as to 
provide the greatest degree of lawful access while safeguarding an 
individual's personal privacy.
    (c) Your request should specify your preferred form or format 
(including electronic formats) for the records you seek. We will 
accommodate your request if the record is readily available in that form 
or format. When you do not specify the form or format of the response, 
we will provide responsive records in the form or format most convenient 
to us.



Sec.  10000.6  Responsibility for responding to requests.

    (a) In general. The Council delegates authority to grant or deny 
FOIA requests in whole or in part to the Chief FOIA Officer. When 
conducting a search for responsive records, the FOIA Officer generally 
will search for records in existence on the date of the search. If 
another date is used, the FOIA Officer shall inform the requester of the 
date used.
    (b) Responses. The Chief FOIA Officer will notify you of his or her 
determination to grant or deny your FOIA request in the time frame 
stated in Sec.  10000.8. The Council will release reasonably segregable 
non-exempt information. For any adverse determination, including those 
regarding any disputed fee matter; a denial of a request for a fee 
waiver; or a determination to withhold a record, in whole or in part, 
that a record does not exist or cannot be located; or to deny a request 
for expedited processing; the notice shall include the following 
information:
    (1) FOIA case number and date of the original request;
    (2) The name(s) of any person responsible for the determination to 
deny the request in whole or in part;
    (3) A brief statement of the reason(s) for the denial, including any 
FOIA exemption applied in denying the request. The Chief FOIA Officer 
will indicate, if technically feasible, the amount of information 
deleted and the exemption under which a deletion is made on the released 
portion of the record, unless including that indication would harm an 
interest protected by the exemption;
    (4) An estimate of the volume of information withheld, if 
applicable. This estimate does not need to be provided if it is 
ascertainable based on redactions in partially disclosed records or if 
the disclosure of the estimate would harm an interest protected by an 
applicable FOIA exemption; and
    (5) A statement of the right to seek dispute resolution services 
from NCD's FOIA Public Liaison and the Office of Government Information 
Services.
    (c) Consultation, referral, and coordination. When reviewing records 
located by the Council in response to a request, the Council shall 
determine whether another agency of the Federal Government or entity is 
better able to determine whether the record is exempt from disclosure 
under the FOIA and, if so, whether it should be released as a matter of 
discretion. As to any such record, the Council shall proceed in one of 
the following ways:
    (1) Consultation. When records originated with the Council, but 
contain within them information of interest to another agency, the 
Council should typically consult with that other agency prior to making 
a release determination.
    (2) Referral. (i) When the Council believes that a different agency 
is best able to determine whether to disclose the record, the Council 
typically should refer the responsibility for responding to the request 
regarding that record, as long as the referral is to an agency that is 
subject to the FOIA. Ordinarily, the agency that originated the record 
will be presumed to be best able to make the disclosure determination. 
However, if the Council and the originating agency jointly agree that 
the former is in the best position to respond regarding the record, then 
the record may be handled as a consultation.

[[Page 1163]]

    (ii) Whenever the Council refers any part of the responsibility for 
responding to a request to another agency, it shall document the 
referral, maintain a copy of the record that it refers, and notify the 
requester of the referral and inform the requester of the name(s) of the 
agency to which the record was referred, including that agency's FOIA 
contact information.
    (3) Coordination. The standard referral procedure is not appropriate 
where disclosure of the identity of the agency to which the referral 
would be made could harm an interest protected by an applicable 
exemption, such as the exemptions that protect personal privacy or 
national security interests. For example, if the Council responding to a 
request for records on a living third party locates within its files 
records originating with a law enforcement agency, and if the existence 
of that law enforcement interest in the third party was not publicly 
known, then to disclose that law enforcement interest could cause an 
unwarranted invasion of the personal privacy of the third party. 
Similarly, if the Council locates within its files material originating 
with an Intelligence Community agency, and the involvement of that 
agency in the matter is classified and not publicly acknowledged, then 
to disclose or give attribution to the involvement of that Intelligence 
Community agency could cause national security harms. In such instances, 
in order to avoid harm to an interest protected by an applicable 
exemption, the Council should coordinate with the originating agency to 
seek its views on the disclosability of the record. The release 
determination for the record that is the subject of the coordination 
should then be conveyed to the requester by the Council.

[80 FR 49118, Aug. 17, 2015, as amended at 81 FR 93792, Dec. 22, 2016]



Sec.  10000.7  Administrative appeals.

    (a) You may appeal an adverse determination related to your FOIA 
request, or the Council's failure to respond to your FOIA request within 
the prescribed time limits, by email at [email protected], or write to the 
Executive Director, National Council on Disability, 1331 F Street NW., 
Suite 850, Washington, DC 20004.
    (b) Your appeal must be in writing and must be postmarked or 
electronically received by the Executive Director within 90 days of the 
date of the letter denying your request, in whole or in part. For the 
most expeditious handling, your appeal letter and envelope should be 
marked ``Freedom of Information Act Appeal'' and reference the request 
number.
    (c) The Executive Director shall respond to all administrative 
appeals in writing and within the time frame stated in Sec.  10000.8(d). 
If the decision affirms, in whole or in part, the Chief FOIA Officer's 
determination, the letter shall contain a statement of the reasons for 
the affirmance, including any FOIA exemption(s) applied, and will inform 
you of the FOIA's provisions for court review. If the Executive Director 
reverses or modifies the Chief FOIA Officer's determination, in whole or 
in part, you will be notified in writing and your request will be 
reprocessed in accordance with that decision. The Council may work with 
Office of Government Information Services (OGIS) to resolve disputes 
between FOIA requestors and the Council. A requester may also seek 
dispute resolution services from NCD's FOIA Public Liaison and OGIS. 
Facsimile is also available at 202-741-5769.

[80 FR 49118, Aug. 17, 2015, as amended at 81 FR 93792, Dec. 22, 2016]



Sec.  10000.8  Timeframe for Council's response to a FOIA request 
or administrative appeal.

    (a) In general. The Council ordinarily shall respond to requests 
according to their order of receipt.
    (b) Multi-track processing. (1) The Council may use two or more 
processing tracks by distinguishing between simple and more complex 
requests based on the amount of work and/or time needed to process the 
request, including through limits based on the number of pages involved. 
If the Council does so, it shall advise requesters in its slower 
track(s) of the limits of its faster track(s).
    (2) Using multitrack processing, the Council may provide requesters 
in its slower track(s) with an opportunity to limit the scope of their 
requests in order to qualify for faster processing

[[Page 1164]]

within the specified limits of the Council's faster track(s). In doing 
so, the Council will contact the requester by telephone, letter, or 
email, whichever is more efficient in each case.
    (c) Initial decisions. The Council shall determine whether to comply 
with a FOIA request within 20 working days after our receipt of the 
request, unless the time frame for response is extended due to unusual 
circumstances as further described in paragraph (f) of this section. A 
request is received by the Council, for purposes of commencing the 20-
day timeframe for its response, on the day it is properly received by 
the FOIA Officer. The request must meet all requirements described by 
these regulations and the FOIA before the 20-day timeframe commences.
    (d) Administrative appeals. The Executive Director shall determine 
whether to affirm or overturn a decision subject to administrative 
appeal within 20 working days after receipt of the appeal, unless the 
time frame for response is extended in accordance with paragraph (e) of 
this section.
    (e) Tolling timelines. We may toll the 20-day timeframe set forth in 
paragraph (c) or (d) of this section:
    (1) One time to await information that we reasonably requested from 
you, as permitted by 5 U.S.C. 552(a)(6)(A)(iii)(I);
    (2) As necessary to clarify with you any fee-related issue.
    (3) If we toll the time frame for response under paragraphs (e)(1) 
or (2) of this section, the tolling period ends upon our receipt of your 
response.
    (f) Unusual circumstances. In the event of unusual circumstances, we 
may extend the time frame for response provided in paragraph (c) or (d) 
of this section by providing you with written notice of the unusual 
circumstances and the date on which a determination is expected to be 
made. Where the extension is for more than ten working days, we will 
provide you with an opportunity either to modify your request so that it 
may be processed within the statutorily-prescribed time limits or to 
arrange an alternative time period for processing your request or 
modified request.
    (g) Aggregating requests. When we reasonably believe that multiple 
requests submitted by a requester, or by a group of requesters acting in 
concert, involving clearly related matters, can be viewed as a single 
request that involves unusual circumstances, we may aggregate the 
requests for the purposes of fees and processing activities.
    (h) Expedited processing. You may request that the Council expedite 
processing of your FOIA request. To receive expedited processing, you 
must demonstrate a compelling need for such processing.
    (1) For requests for expedited processing, a ``compelling need'' 
involves:
    (i) Circumstances in which the lack of expedited treatment could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual; or
    (ii) A request made by a person primarily engaged in disseminating 
information, with a time urgency to inform the public of actual or 
alleged federal government activity.
    (2) Your request for expedited processing must be in writing and may 
be made at the time of the initial FOIA request or at any later time.
    (3) Your request for expedited processing must include a statement, 
certified to be true and correct to the best of your knowledge and 
belief, explaining in detail the basis for requesting expedited 
processing. If you are a person primarily engaged in disseminating 
information, you must establish a particular urgency to inform the 
public about the federal government activity involved in the request.
    (4) The Chief FOIA Officer will decide whether to grant or deny your 
request for expedited processing and notify the requester within ten 
calendar days of receipt. You will be notified in writing of the 
determination. Appeals of adverse decisions regarding expedited 
processing shall be processed expeditiously.

[80 FR 49118, Aug. 17, 2015, as amended at 81 FR 93792, Dec. 22, 2016]



Sec.  10000.9  Business information.

    (a) Designation of confidential business information. In the event a 
FOIA request is made for confidential business information previously 
submitted to

[[Page 1165]]

the Government by a commercial entity or on behalf of it (hereinafter 
``submitter''), the regulations in this section apply. When submitting 
confidential business information, you must use a good-faith effort to 
designate, by use of appropriate markings, at the time of submission or 
at a reasonable time thereafter, any portions of your submission that 
you consider to be exempt from disclosure under FOIA Exemption 4, 5 
U.S.C. 552(b)(4). Your designation will expire ten years after the date 
of submission unless you request, and provide justification for, a 
longer designation period.
    (b) Notice to submitters. (1) Whenever you designate confidential 
business information as provided in paragraph (a) of this section, or 
the Council has reason to believe that your submission may contain 
confidential business information, we will provide you with prompt 
written notice of a FOIA request that seeks your business information. 
The notice shall:
    (i) Give you an opportunity to object to disclosure of your 
information, in whole or in part;
    (ii) Describe the business information requested or include copies 
of the requested records or record portions containing the information; 
and
    (iii) Inform you of the time frame in which you must respond to the 
notice.
    (2) In cases involving a voluminous number of submitters, notice may 
be made by posting or publishing the notice in a place or manner 
reasonably likely to accomplish it.
    (c) Opportunity to object to disclosure. The Council shall allow you 
a reasonable time to respond to the notice described in paragraph (b) of 
this section. If you object to the disclosure of your information, in 
whole or in part, you must provide us with a detailed written statement 
of your objection. The statement must specify all grounds for 
withholding any portion of the information under any FOIA exemption and, 
when relying on FOIA Exemption 4, it must explain why the information is 
a trade secret or commercial or financial information that is privileged 
and confidential. If you fail to respond within the time frame specified 
in the notice, the Council will conclude that you have no objection to 
disclosure of your information. The Council will only consider 
information that we receive within the time frame specified in the 
notice.
    (d) Notice of intent to disclose. The Council will consider your 
objection and specific grounds for non-disclosure in deciding whether to 
disclose business information. Whenever the Council decides to disclose 
business information over your objection, we will provide you with 
written notice that includes:
    (1) A statement of the reasons why each of your bases for 
withholding were not sustained;
    (2) A description of the business information to be disclosed; and
    (3) A specified disclosure date, which shall be a reasonable time 
after the notice.
    (e) Exceptions to the notice requirement. The notice requirements of 
paragraphs (c) and
    (d) of this section shall not apply if:
    (1) The Council determines that the information is exempt under the 
FOIA;
    (2) The information lawfully has been published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by statute (other than 
the FOIA) or by a regulation issued in accordance with the requirements 
of Executive Order 12600;
    (4) The designation made by the submitter under paragraph (a) of 
this section appears obviously frivolous, except that, in such a case, 
the Council shall, within a reasonable time prior to the date the 
disclosure will be made, give the submitter written notice of the final 
decision to disclose the information.
    (f) Requester notification. The Council shall notify a requester 
whenever it provides the submitter with notice and an opportunity to 
object to disclosure; whenever it notifies the submitter of its intent 
to disclose the requested information; and whenever a submitter files a 
lawsuit to prevent the disclosure of the information.



Sec.  10000.10  Fees.

    (a) We will charge fees that recoup the full allowable direct costs 
we incur in processing your FOIA request. Fees may be charged for 
search, review or

[[Page 1166]]

duplication. We will use the most efficient and least costly methods to 
comply with your request.
    (b) With regard to manual searches for records, we will charge the 
salary rate(s) (calculated as the basic rate of pay plus 16 percent of 
that basic rate to cover benefits) of the employee(s) performing the 
search.
    (c) In calculating charges for computer searches for records, we 
will charge at the actual direct cost of providing the service, 
including the cost of operating the central processing unit directly 
attributable to searching for records potentially responsive to your 
FOIA request and the portion of the salary of the operators/programmers 
performing the search.
    (d) Review fees shall be charged for requesters who make commercial 
use requests. Review fees shall be assessed only for the initial 
review--that is the review undertaken the first time we analyze the 
applicability of a specific exemption to a particular record or portion 
of a record. Records or portions of records withheld in full under an 
exemption that is subsequently determined not to apply may be reviewed 
again to determine the applicability of other exemptions not previously 
considered. We may assess the costs for such subsequent review. Review 
fees are charged at the same rates as those charged for a search.
    (e) Notice of anticipated fees in excess of $25.00:
    (1) When the Council determines or estimates that the fees to be 
assessed in accordance with this section will exceed $25.00, the Council 
shall notify the requester of the actual or estimated amount of the 
fees, including a breakdown of the fees for search, review or 
duplication, unless the requester has indicated a willingness to pay 
fees as high as those anticipated. If only a portion of the fee can be 
estimated readily, the Council shall advise the requester accordingly. 
If the requester is a noncommercial use requester, the notice shall 
specify that the requester is entitled to the statutory entitlements of 
100 pages of duplication or equivalent at no charge. For example, 100 
pages burned to a single CD would be considered equivalent to 100 pages 
of duplication. And, if the requester is charged search fees, two hours 
of search time at no charge, and shall advise the requester whether 
those entitlements have been provided.
    (2) In cases in which a requester has been notified that the actual 
or estimated fees are in excess of $25.00, the request shall not be 
considered received and further work will not be completed until the 
requester commits in writing to pay the actual or estimated total fee, 
or designates some amount of fees the requester is willing to pay, or in 
the case of a noncommercial use requester who has not yet been provided 
with the requester's statutory entitlements, designates that the 
requester seeks only that which can be provided by the statutory 
entitlements. The requester must provide the commitment or designation 
in writing, and must, when applicable, designate an exact dollar amount 
the requester is willing to pay. The Council is not required to accept 
payments in installments.
    (3) If the requester has indicated a willingness to pay some 
designated amount of fees, but the Council estimates that the total fee 
will exceed that amount, the Council shall toll the processing of the 
request when it notifies the requester of the estimated fees in excess 
of the amount the requester has indicated a willingness to pay. The 
Council shall inquire whether the requester wishes to revise the amount 
of fees the requester is willing to pay or modify the request. Once the 
requester responds, the time to respond will resume from where it was at 
the date of the notification.
    (4) The Council shall make available its FOIA Public Liaison or 
other FOIA professional to assist any requester in reformulating a 
request to meet the requester's needs at a lower cost.
    (f) We will charge you the full costs of providing you with the 
following services:
    (1) Certifying that records are true copies; or
    (2) Sending records by special methods such as express or certified 
mail.
    (g) We may assess interest charges on an unpaid bill starting on the 
31st calendar day following the day on which the billing was sent. 
Interest shall be at the rate prescribed in 31 U.S.C. 3717

[[Page 1167]]

and will accrue from the date of the billing.
    (h) We will not charge a search fee for requests by educational 
institutions, non-commercial scientific institutions, or representatives 
of the news media. A search fee will be charged for a commercial use 
requests.
    (i) Except for a commercial use request, we will not charge you for 
the first 100 pages of duplication and the first two hours of search.
    (j) If the Council fails to comply with the time limits in which to 
respond to a request, and if no unusual or exceptional circumstances, as 
those terms are defined by the FOIA, apply to the processing of the 
request, it may not charge search fees, or, in the instances of requests 
from requesters requests by educational institutions (unless the records 
are sought for a commercial use), noncommercial scientific institutions, 
or representatives of the news media, may not charge duplication fees.
    (k) After processing, actual fees must be equal to or exceed $25, 
for the Council to require payment of fees.
    (l) You may not file multiple requests, each seeking portions of a 
document or documents, solely for the purpose of avoiding payment of 
fees. When the Council reasonably believes that a requester, or a group 
of requesters acting in concert, has submitted requests that constitute 
a single request involving clearly related matters, we may aggregate 
those requests and charge accordingly.
    (m) We may not require you to make payment before we begin work to 
satisfy the request or to continue work on a request, unless:
    (1) We estimate or determine that the allowable charges that you may 
be required to pay are likely to exceed $250; or
    (2) You have previously failed to pay a fee charged within 30 days 
of the date of billing.
    (n) Upon written request, we may waive or reduce fees that are 
otherwise chargeable under this part. If you request a waiver or 
reduction in fees, you must demonstrate that a waiver or reduction in 
fees is in the public interest because disclosure of the requested 
records is likely to contribute significantly to the public 
understanding of the operations or activities of the government and is 
not primarily in your commercial interest.
    (1) In deciding whether disclosure of the requested information is 
in the public interest because it is likely to contribute significantly 
to public understanding of operations or activities of the government, 
the Council shall consider all four of the following factors:
    (i) The subject of the request must concern identifiable operations 
or activities of the Federal Government, with a connection that is 
direct and clear, not remote or attenuated.
    (ii) Disclosure of the requested records must be meaningfully 
informative about government operations or activities in order to be 
``likely to contribute'' to an increased public understanding of those 
operations or activities. The disclosure of information that already is 
in the public domain, in either the same or a substantially identical 
form, would not contribute to such understanding where nothing new would 
be added to the public's understanding.
    (iii) The disclosure must contribute to the understanding of a 
reasonably broad audience of persons interested in the subject, as 
opposed to the individual understanding of the requester. A requester's 
expertise in the subject area as well as the requester's ability and 
intention to effectively convey information to the public shall be 
considered. It shall be presumed that a representative of the news media 
will satisfy this consideration.
    (iv) The public's understanding of the subject in question must be 
enhanced by the disclosure to a significant extent. However, components 
shall not make value judgments about whether the information at issue is 
``important'' enough to be made public.
    (2) To determine whether disclosure of the requested information is 
primarily in the commercial interest of the requester, the Council shall 
consider the following factors:
    (i) The Council shall identify any commercial interest of the 
requester, as defined in Sec.  10000.2, that would be furthered by the 
requested disclosure.

[[Page 1168]]

Requesters shall be given an opportunity to provide explanatory 
information regarding this consideration.
    (ii) A waiver or reduction of fees is justified where the public 
interest is greater than any identified commercial interest in 
disclosure. The Council ordinarily shall presume that where a news media 
requester has satisfied the public interest standard, the public 
interest will be the interest primarily served by disclosure to that 
requester. Disclosure to data brokers or others who merely compile and 
market government information for direct economic return shall not be 
presumed to primarily serve the public interest.
    (3) Where only some of the records to be released satisfy the 
requirements for a waiver of fees, a waiver shall be granted for those 
records.
    (4) Requests for a waiver or reduction of fees should be made when 
the request is first submitted to the component and should address the 
criteria referenced above. A requester may submit a fee waiver request 
at a later time so long as the underlying record request is pending or 
on administrative appeal. When a requester who has committed to pay fees 
subsequently asks for a waiver of those fees and that waiver is denied, 
the requester shall be required to pay any costs incurred up to the date 
the fee waiver request was received.



PART 10001_IMPLEMENTATION OF THE PRIVACY ACT OF 1974--Table of Contents



Sec.
10001.1 Purpose and scope.
10001.2 Definitions.
10001.3 Privacy Act requests.
10001.4 Responses to Privacy Act requests.
10001.5 Administrative appeals.
10001.6 Fees.
10001.7 Penalties.

    Authority: 5 U.S.C. 552a.

    Source: 80 FR 49118, Aug. 17, 2015, unless otherwise noted.



Sec.  10001.1  Purpose and scope.

    The regulations in this part implement the provisions of the Privacy 
Act.



Sec.  10001.2  Definitions.

    The following terms used in this part are defined in the Privacy 
Act: Individual, maintain, record, routine use, statistical record, 
system of records. The following definitions also apply in this part:
    Chairperson means the Chairperson of the Council, as appointed by 
the President, or any person to whom the Council has delegated authority 
for the matter concerned.
    Council means the National Council on Disability, established by the 
Rehabilitation Act of 1973 (29 U.S.C. 780 et seq.), as amended, and 
amended by the Workforce Innovation and Opportunity Act (Pub. L. 113-
128) in 2014.
    General Counsel means the Council's principal legal advisor, or his 
or her designee.
    Privacy Act means the Privacy Act of 1974, 5 U.S.C. 552a, as 
amended.
    Privacy Act Officer means the person designated by the Council to be 
responsible for the day-to-day administration of the Privacy Act, 
currently delegated to the Council's Management Analyst.



Sec.  10001.3  Privacy Act requests.

    (a) Requests to determine if you are the subject of a record. You 
may request that the Council inform you if we maintain a system of 
records that contains records about you. Your request must follow the 
procedures described in paragraph (b) of this section.
    (b) Requests for access. You may request access to a Council record 
about you in writing or by appearing in person. You should direct your 
request to the Privacy Act Officer. Written requests may be sent to: 
Privacy Act Officer, National Council on Disability, 1331 F Street NW., 
Suite 850, Washington, DC 20004. Your request should include the 
following information:
    (1) Your name, address, and telephone number;
    (2) The system(s) of records in which the requested information is 
contained; and
    (3) At your option, authorization for copying expenses.
    (4) Written requests. In addition to the information described in 
paragraphs (b)(1) through (3) of this section, written requests must 
include a statement affirming your identity, signed by you and witnessed 
by two persons (including witnesses' addresses) or notarized.

[[Page 1169]]

    (i) Witnessed. If your statement is witnessed, it must include a 
sentence above the witnesses' signatures attesting that they personally 
know you or that you have provided satisfactory proof of your identity.
    (ii) Notarized. If your statement is notarized, you must provide the 
notary with adequate proof of your identity in the form of a drivers' 
license, passport, or other identification acceptable to the notary.
    (iii) The Council, in its discretion, may require additional proof 
of identification depending on the nature and sensitivity of the records 
in the system of records(iv) For the quickest possible handling, your 
letter and envelope should be marked ``Privacy Act Request.''
    (5) In person requests. In addition to the information described in 
paragraphs (b)(1) through (3) of this section, if you make your request 
in person, you must provide adequate proof of identification at the time 
of your request. Adequate proof of identification includes a valid 
drivers' license, valid passport, or other current identification that 
includes your address and photograph.
    (c) Requests for amendment or correction of records. You may request 
an amendment to or correction of a record about you in person or by 
writing to the Privacy Act Officer following the procedures described in 
paragraph (b) of this section. Your request for amendment or correction 
should identify each particular record at issue, state the amendment or 
correction sought, and describe why the record is not accurate, 
relevant, timely, or complete.
    (d) Requests for an accounting of disclosures. Except for those 
disclosures for which the Privacy Act does not require an accounting, 
you may request an accounting of any disclosure by the Council of a 
record about you. Your request for an accounting of disclosures must be 
made in writing following the procedures described in paragraph (b) of 
this section.
    (e) Requests for access on behalf of someone else. (1) If you are 
making a request on behalf of someone else, your request must include a 
statement from that individual verifying his or her identity, as 
provided in paragraph (b)(4) of this section. Your request also must 
include a statement certifying that individual's agreement that records 
about him or her may be released to you.
    (2) If you are the parent or guardian of the individual to whom the 
requested record pertains, or the individual to whom the record pertains 
has been deemed incompetent by a court, your request for access to 
records about that individual must include:
    (i) The identity of the individual who is the subject of the record, 
including his or her name, current address, and date and place of birth;
    (ii) Verification of your identity in accordance with paragraph 
(b)(4) of this section;
    (iii) Verification that you are the subject's parent or guardian, 
which may be established by a copy of the subject's birth certificate 
identifying you as his or her parent, or a court order establishing you 
as guardian; and
    (iv) A statement certifying that you are making the request on the 
subject's behalf.



Sec.  10001.4  Responses to Privacy Act requests.

    (a) Acknowledgement. The Privacy Act Officer shall provide you with 
a written acknowledgment of your written request under section 3 within 
ten business days of our receipt of your request.
    (b) Grants of requests. If you make your request in person, the 
Privacy Act Officer shall respond to your request directly, either by 
granting you access to the requested records, upon payment of any 
applicable fee and with a written record of the grant of your request 
and receipt of the records, or by informing you when a response may be 
expected. If you are accompanied by another person, you must authorize 
in writing any discussion of the records in the presence of the third 
person. If your request is in writing, the Privacy Act Officer shall 
provide you with written notice of the Council's decision to grant your 
request and the amount of any applicable fee. The Privacy Act Officer 
shall disclose the records to you promptly, upon payment of any 
applicable fee.

[[Page 1170]]

    (c) Denials of requests in whole or in part. The Privacy Act Officer 
shall notify you in writing of his or her determination to deny, in 
whole or in part, your request. This writing shall include the following 
information:
    (1) The name and title or position of the person responsible for the 
denial;
    (2) A brief statement of the reason for the denial(s), including any 
applicable Privacy Act exemption;
    (3) A statement that you may appeal the denial and a brief 
description of the requirements for appeal under Sec.  10001.5.
    (d) Request for records not covered by the Privacy Act or subject to 
Privacy Act exemption. If the Privacy Act Officer determines that a 
requested record is not subject to the Privacy Act or the records are 
subject to Privacy Act exemption, your request will be processed in 
accordance with the Council's Freedom of Information Act procedures at 5 
CFR part 10000.



Sec.  10001.5  Administrative appeals.

    (a) Appeal procedures. (1) You may appeal any decision by the 
Council to deny, in whole or in part, your request under Sec.  10001.3 
no later than 60 days after the decision is rendered.
    (2) Your appeal must be in writing, sent to the General Counsel at 
the address specified in Sec.  10001.3(b) and contain the following 
information:
    (i) Your name;
    (ii) Description of the record(s) at issue;
    (iii) The system of records in which the record(s) is contained;
    (iv) A statement of why your request should be granted.
    (3) The General Counsel shall determine whether to uphold or reverse 
the initial determination within 30 working days of our receipt of your 
appeal. The General Counsel shall notify you of his or her decision, 
including a brief statement of the reasons for the decision, in writing. 
The General Counsel's decision will be the final action of the Council.
    (b) Statement of disagreement. If your appeal of our determination 
related to your request for amendment or correction is denied in whole 
or in part, you may file a Statement of Disagreement that states the 
basis for your disagreement with the denial. Statements of Disagreement 
must be concise and must clearly identify each part of any record that 
is disputed. The Privacy Act Officer will place your Statement of 
Disagreement in the system of records in which the disputed record is 
maintained and shall mark the disputed record to indicate that a 
Statement of Disagreement has been filed and where it may be found.
    (c) Notification of amendment, correction, or disagreement. Within 
30 working days of the amendment or correction of a record, the Privacy 
Act Officer shall notify all persons, organizations, or agencies to 
which the Council previously disclosed the record, if an accounting of 
that disclosure was made, that the record has been corrected or amended. 
If you filed a Statement of Disagreement, the Privacy Act Officer shall 
append a copy of it to the disputed record whenever it is disclosed and 
also may append a concise statement of its reason(s) for denying the 
request to amend or correct the record.



Sec.  10001.6  Fees.

    We will not charge a fee for search or review of records requested 
under this part, or for the correction of records. If you request copies 
of records, we may charge a fee of $.10 per page.



Sec.  10001.7  Penalties.

    Any person who makes a false statement in connection with any 
request for a record or an amendment or correction thereto under this 
part is subject to the penalties prescribed in 18 U.S.C. 494 and 495 and 
5 U.S.C. 552a(i)(3).



PART 10002_IMPLEMENTATION OF THE GOVERNMENT IN THE SUNSHINE ACT--
Table of Contents



Sec.
10002.1 Purpose and scope.
10002.2 Definitions.
10002.3 Open meetings.
10002.4 Procedures for public announcement of meetings.
10002.5 Grounds on which meetings may be closed or information withheld.
10002.6 Procedures for closing meetings or withholding information, and 
          requests by affected persons to close a meeting.
10002.7 Changes following public announcement.

[[Page 1171]]

10002.8 Transcripts, recordings, or minutes of closed meetings.
10002.9 Public availability and retention of transcripts, recordings, 
          and minutes, and applicable fees.

    Authority: 5 U.S.C. 552b.

    Source: 80 FR 49118, Aug. 17, 2015, unless otherwise noted.



Sec.  10002.1  Purpose and scope.

    (a) The regulations in this part implement the provisions of the 
Sunshine Act.
    (b) Requests for all records other than those described in Sec.  
10002.9, shall be governed by the Council's Freedom of Information Act 
procedures at 5 CFR part 10001.



Sec.  10002.2  Definitions.

    The following definitions apply in this part:
    Chairperson means the Chairperson of the Council, as appointed by 
the President, or any person to whom the Council has delegated authority 
for the matter concerned.
    Council means the National Council on Disability, established by the 
Rehabilitation Act of 1973 (29 U.S.C. 780 et seq.), as amended, and 
amended by the Workforce Innovation and Opportunity Act (Pub. L. 113-
128) in 2014.
    General Counsel means the Council's principal legal advisor, or his 
or her designee.
    Meeting means the deliberations of five or more Council members that 
determine or result in the joint conduct or disposition of official 
Council business. A meeting does not include:
    (1) Notational voting or similar consideration of business for the 
purpose of recording votes, whether by circulation of material to 
members' individually in writing or by a polling of the members 
individually by phone or email.
    (2) Action by five or more members to:
    (i) Open or close a meeting or to release or withhold information 
pursuant to Sec.  10002.6;
    (ii) Set an agenda for a proposed meeting;
    (iii) Call a meeting on less than seven days' notice, as permitted 
by Sec.  10002.4; or
    (iv) Change the subject matter or the determination to open or to 
close a publicly announced meeting under Sec.  10002.7.
    (3) A session attended by five or more members for the purpose of 
having the Council's staff or expert consultants, another federal 
agency, or other persons or organizations brief or otherwise provide 
information to the Council concerning any matters within the purview of 
the Council, provided that the members do not engage in deliberations 
that determine or result in the joint conduct or disposition of official 
business on such matters.
    (4) A gathering of members for the purpose of holding informal, 
preliminary discussions or exchanges of views which do not effectively 
predetermine official action.
    Member means an individual duly appointed and confirmed to the 
Council.
    Public observation means attendance by the public at a meeting of 
the Council, but does not include public participation.
    Public participation means the presentation or discussion of 
information, raising of questions, or other manner of involvement in a 
meeting of the Council by the public in a manner that contributes to the 
disposition of official Council business.
    Sunshine Act means the Government in the Sunshine Act, 5 U.S.C. 
552b.



Sec.  10002.3  Open meetings.

    (a) Except as otherwise provided in this part, every portion of a 
Council meeting shall be open to public observation.
    (b) Council meetings, or portions thereof, shall be open to public 
participation when an announcement to that effect is published under 
Sec.  10002.4. Public participation shall be conducted in an orderly, 
non-disruptive manner and in accordance with any procedures the 
Chairperson may establish. Public participation may be terminated for 
good cause as determined by the Council upon the advice of the General 
Counsel based on unanticipated developments.



Sec.  10002.4  Procedures for public announcement of meetings.

    (a) Except as otherwise provided in this section, the Council shall 
make a

[[Page 1172]]

public announcement at least seven days prior to a meeting. The public 
announcement shall include:
    (1) The time and place of the meeting;
    (2) The subject matter of the meeting;
    (3) Whether the meeting is to be open, closed, or portions of a 
meeting will be closed;
    (4) Whether public participation will be allowed;
    (5) The name and telephone number of the person who will respond to 
requests for information about the meeting;
    (b) The seven-day prior notice required by paragraph (a) of this 
section may be reduced only if:
    (1) A majority of all members determine by recorded vote that 
Council business requires that such meeting be scheduled in less than 
seven days; and
    (2) The public announcement required by this section is made at the 
earliest practicable time.
    (c) If public notice is provided by means other than publication in 
the Federal Register, notice will be promptly submitted to the Federal 
Register for publication.



Sec.  10002.5  Grounds on which meetings may be closed or information withheld.

    A meeting, or portion thereof, may be closed and information 
pertinent to such meeting withheld if the Council determines that the 
meeting or release of information is likely to disclose matters that 
are:
    (a) Specifically authorized under criteria established by an 
executive order to be kept secret in the interests of national defense 
or foreign policy; and, in fact, are properly classified pursuant to 
such executive order. In making the determination that this exemption 
applies, the Council shall rely on the classification assigned to the 
document or assigned to the information from the federal agency from 
which the document was received.
    (b) Related solely to the internal personnel rules and practices of 
the Council;
    (c) Specifically exempt from disclosure by statute (other than 5 
U.S.C. 552), provided that such statute:
    (1) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue; or
    (2) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (d) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (e) Involved with accusing any person of a crime or formally 
censuring any person;
    (f) Of a personal nature, if disclosure would constitute a clearly 
unwarranted invasion of personal privacy;
    (g) Either investigatory records compiled for law enforcement 
purposes or information which, if written, would be contained in such 
records, but only to the extent that the production of records or 
information would:
    (1) Interfere with enforcement proceedings;
    (2) Deprive a person of a right to either a fair trial or an 
impartial adjudication;
    (3) Constitute an unwarranted invasion of personal privacy;
    (4) Disclose the identity of a confidential source or sources and, 
in the case of a record compiled either by a criminal law enforcement 
authority or by an agency conducting a lawful national security 
intelligence investigation, confidential information furnished only by 
the confidential source(s);
    (5) Disclose investigative techniques and procedures; or
    (6) Endanger the life or physical safety of law enforcement 
personnel;
    (h) Contained in or relating to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions;
    (i) If prematurely disclosed, likely to significantly frustrate 
implementation of a proposed action of the Council, except that this 
subsection shall not apply in any instance where the Council has already 
disclosed to the public the content or nature of its proposed action or 
is required by law to make such disclosure on its own initiative prior 
to taking final action on such proposal; and

[[Page 1173]]

    (j) Specifically concerned with the Council's issuance of a 
subpoena, or its participation in a civil action or proceeding, an 
action in a foreign court or international tribunal, or an arbitration, 
or the initiation, conduct, or disposition by the Council of a 
particular case or formal agency adjudication pursuant to the procedures 
in 5 U.S.C. 554 or otherwise involving a determination on the record 
after opportunity for a hearing.



Sec.  10002.6  Procedures for closing meetings or withholding information, 
and requests by affected persons to close a meeting.

    (a) A meeting or portion of a meeting may be closed and information 
pertaining to a meeting withheld under Sec.  10002.5 only by vote of a 
majority of members.
    (b) A separate vote of the members shall be taken with respect to 
each meeting or portion of a meeting proposed to be closed and with 
respect to information which is proposed to be withheld. A single vote 
may be taken with respect to a series of meetings or portions of a 
meeting that are proposed to be closed, so long as each meeting or 
portion thereof in the series involves the same particular matter and is 
scheduled to be held no more than 30 days after the initial meeting in 
the series. The vote of each member shall be recorded and no proxies 
shall be allowed.
    (c) A person whose interests may be directly affected by a portion 
of a meeting may request in writing that the Council close that portion 
for any of the reasons referred to in Sec.  10002.5(e) through (g). Upon 
the request of a member, a recorded vote shall be taken whether to close 
such meeting or portion thereof.
    (d) For every meeting closed, the General Counsel shall publicly 
certify that, in his or her opinion, the meeting may be closed to the 
public and shall state each relevant basis for closing the meeting. If 
the General Counsel invokes the bases set forth in Sec.  10002.5(a) or 
(c), he or she shall rely upon the classification or designation 
assigned to the information by the originating agency. A copy of such 
certification, together with a statement by the presiding officer 
setting forth the time and place of the meeting and the persons present, 
shall be retained by the Council as part of the transcript, recording, 
or minutes required by Sec.  10002.8.



Sec.  10002.7  Changes following public announcement.

    (a) The time or place of a meeting may be changed following the 
public announcement described in Sec.  10002.4. The Council must 
publicly announce such change at the earliest practicable time.
    (b) The subject matter of a meeting or the determination of the 
Council to open or close a meeting, or a portion thereof, to the public 
may be changed following public announcement only if:
    (1) A majority of all members determine by recorded vote that 
Council business so requires and that no earlier announcement of the 
change was possible; and
    (2) The Council publicly announces such change and the vote of each 
member thereon at the earliest practicable time.



Sec.  10002.8  Transcripts, recordings, or minutes of closed meetings.

    Along with the General Counsel's certification and presiding 
officer's statement referred to in Sec.  10002.6(d), the Council shall 
maintain a complete transcript or electronic recording adequate to 
record fully the proceedings of each meeting, or a portion thereof, 
closed to the public. Alternatively, for any meeting closed pursuant to 
Sec.  10002.5(h) or (j), the Council may maintain a set of minutes 
adequate to record fully the proceedings, including a description of 
each of the views expressed on any item and the record of any roll call 
vote.



Sec.  10002.9  Public availability and retention of transcripts, recordings, 
and minutes, and applicable fees.

    (a) The Council shall make available, in a place easily accessible, 
such as www.ncd.gov, to the public the transcript, electronic recording, 
or minutes of a meeting, except for items of discussion or testimony 
related to matters the Council determines may be withheld under Sec.  
10002.6.

[[Page 1174]]

    (b) Copies of the nonexempt portions of the transcripts or minutes 
shall be provided upon receipt of the actual costs of the transcription 
or duplication.
    (c) The Council shall maintain meeting transcripts, recordings, or 
minutes of each meeting closed to the public for a period ending at the 
later of two years following the date of the meeting, or one year after 
the conclusion of any Council proceeding with respect to the closed 
meeting.

                      PARTS 10003	10049 [RESERVED]

[[Page 1175]]



                  CHAPTER CI--NATIONAL MEDIATION BOARD




  --------------------------------------------------------------------
Part                                                                Page
10101           Supplemental Standards of Ethical Conduct 
                    for Employees of the National Mediation 
                    Board...................................        1177

[[Page 1177]]



PART 10101_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL MEDIATION BOARD--Table of Contents



Sec.
10101.101 General.
10101.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 
1978); 44 Stat. 577, as amended; 45 U.S.C. 151, 160a; E.O. 12674, 54 FR 
15159, 3 CFR, 189 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 
3CFR, 1990 Comp., p. 306; 5 CFR 2635.105, 2635.803.

    Source: 83 FR 54862, Nov. 1, 2018, unless otherwise noted.



Sec.  10101.101  General.

    Purpose. In accordance with 5 CFR 2635.105, the regulations in this 
part apply all employees of the National Mediation Board (NMB) and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch at 5 CFR 2635.



Sec.  10101.102  Prior approval for outside employment.

    (a) General Requirement. Before engaging in compensated or 
uncompensated outside employment, all National Mediation Board employees 
must obtain written approval from the Board or its designee.
    (b) Procedure for requesting approval. (1) The approval by the Board 
or its designee shall be requested in writing in advance of engaging in 
outside employment.
    (2) Upon a significant change in the nature of scope of the outside 
employment or in the employee's official position, the employee shall 
submit a revised request for approval within 30 calendar days.
    (c) Standard for approval. (1) Approval shall be granted unless the 
Board or its designee determines that the outside employment is expected 
to involve conduct prohibited by statute or Federal regulation, 
including 5 CFR part 2635.
    (2) As part of the approval process, the Board or its designee shall 
provide the request to the Designated Agency Ethics Official (DAEO) in 
order for the employee to receive written ethics guidance. In the event, 
the DAEO is the Board's designee, the DAEO shall provide written ethics 
guidance upon receiving the request. This written ethics guidance shall 
be appended to the written approval.
    (d) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment or business 
relationship, compensated or uncompensated, involving the provision of 
personal services by the employee. It includes, but is not limited to 
personal services as an officer, director, employee, agent, attorney, 
consultant, contractor, general partner, trustee, teacher, or speaker. 
It includes writing when done under an arrangement with another person 
for production or publication of the written product. It does not, 
however, include participation in the activities of a nonprofit 
charitable, religious, professional, social, fraternal, educational, 
recreational, public service or civic organization, unless such 
activities are for compensation other than reimbursement of expenses; 
such activities involve the provision of professional services or 
advice; or the organization's activities are devoted substantially to 
matters relating to the employee's official duties as defined in 5 CFR 
2635.807(a)(2)(i)(B) through (E).

[[Page 1179]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 1181]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 2020)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--599)
        VI  National Capital Planning Commission (Parts 600--699)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Guidance (Parts 200--
                299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300--
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
         X  Department of the Treasury (Parts 1000--1099)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Department of Housing and Urban Development (Parts 
                2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)

[[Page 1182]]

     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
      XXIX  Department of Labor (Parts 2900--2999)
       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
     XXXVI  Office of National Drug Control Policy, Executive 
                Office of the President (Parts 3600--3699)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)
       LIX  Gulf Coast Ecosystem Restoration Council (Parts 5900--
                5999)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Office of Personnel Management and Office of the 
                Director of National Intelligence (Parts 1400--
                1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600--3699)

[[Page 1183]]

    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  U.S. International Development Finance Corporation 
                (Parts 4300--4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
     XXXVI  Department of Homeland Security (Parts 4600--4699)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)

[[Page 1184]]

     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (Parts 9600--
                9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
    XCVIII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)
      XCIX  Military Compensation and Retirement Modernization 
                Commission (Parts 9900--9999)
         C  National Council on Disability (Parts 10000--10049)
        CI  National Mediation Board (Part 10101)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--199)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Agricultural Marketing Service (Federal Grain 
                Inspection Service, Fair Trade Practices Program), 
                Department of Agriculture (Parts 800--899)

[[Page 1185]]

        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  [Reserved]
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  [Reserved]
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

[[Page 1186]]

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Agricultural Marketing Service (Federal Grain 
                Inspection Service, Fair Trade Practices Program), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  (Parts 600--699) [Reserved]
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)

[[Page 1187]]

       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research (Parts 1600--1699)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  National Technical Information Service, Department of 
                Commerce (Parts 1100--1199)

[[Page 1188]]

      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399) [Reserved]

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599) [Reserved]

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)

[[Page 1189]]

        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millennium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)

[[Page 1190]]

        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799) [Reserved]
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099) [Reserved]
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

[[Page 1191]]

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--899)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900--999)
        VI  Office of the Assistant Secretary, Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)

[[Page 1192]]

        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)

[[Page 1193]]

      VIII  Office of Investment Security, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Department of Defense, Defense Logistics Agency (Parts 
                1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army, Department 
                of Defense (Parts 200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)

[[Page 1194]]

       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Career, Technical and Adult Education, 
                Department of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599) 
                [Reserved]
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799) 
                [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  (Parts 1100--1199) [Reserved]
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  U.S. Copyright Office, Library of Congress (Parts 
                200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  National Institute of Standards and Technology, 
                Department of Commerce (Parts 400--599)

[[Page 1195]]

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)
      VIII  Gulf Coast Ecosystem Restoration Council (Parts 1800--
                1899)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]

[[Page 1196]]

            Subtitle E--Federal Information Resources Management 
                Regulations System [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--699)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1099)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)

[[Page 1197]]

       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
        IX  Denali Commission (Parts 900--999)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Administration for Children and Families, Department 
                of Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission of Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Parts 2300--2399)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

[[Page 1198]]

        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)
         V  The First Responder Network Authority (Parts 500--599)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199) [Reserved]
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399) 
                [Reserved]

[[Page 1199]]

        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499) 
                [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)

[[Page 1200]]

        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

[[Page 1201]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 2020)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     5, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, VIII, IX, X, XI; 9, 
                                                  II
Agricultural Research Service                     7, V
Agriculture, Department of                        2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, VIII, IX, X, XI; 9, 
                                                  II
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force, Department of                          32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
   Compliance Board
[[Page 1202]]

Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI; 38, II
Army, Department of                               32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase from People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Career, Technical, and Adult Education, Office    34, IV
     of
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazard Investigation Board    40, VI
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X, XIII
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX
     for the District of Columbia
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce, Department of                           2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II; 37, IV
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Technical Information Service          15, XI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Secretary of Commerce, Office of                15, Subtitle A
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I
Defense Contract Audit Agency                     32, I
Defense, Department of                            2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III; 
                                                  48, 51

[[Page 1203]]

  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy, Department of                             32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Denali Commission                                 45, IX
Disability, National Council on                   5, C; 34, XII
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Career, Technical, and Adult Education, Office  34, IV
       of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Policy, National Commission for        1, IV
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             2, IX; 5, XXIII; 10, II, 
                                                  III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99
  National Drug Control Policy, Office of         2, XXXVI; 21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II

[[Page 1204]]

  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission of                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5

[[Page 1205]]

  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Gulf Coast Ecosystem Restoration Council          2, LIX; 40, VIII
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X, XIII
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 5, XXXVI; 6, I; 8, 
                                                  I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing and Urban Development, Department of      2, XXIV; 5, LXV; 24, 
                                                  Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Independent Counsel, Offices of                   28, VI
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V

[[Page 1206]]

Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior, Department of                           2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Safety and Enforcement Bureau, Bureau of        30, II
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Development Finance Corporation,    5, XXXIII; 22, VII
     U.S.
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice, Department of                            2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Independent Counsel, Offices of                 28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor, Department of                              2, XXIX; 5, XLII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50

[[Page 1207]]

  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I, VII
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Libraries and Information Science, National       45, XVII
     Commission on
Library of Congress                               36, VII
  Copyright Royalty Board                         37, III
  U.S. Copyright Office                           37, II
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Military Compensation and Retirement              5, XCIX
     Modernization Commission
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV, VI
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           2, XXXVI; 21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Geospatial-Intelligence Agency           32, I
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II; 37, IV
National Intelligence, Office of Director of      5, IV; 32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          5, CI; 29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
   and Technology Policy
[[Page 1208]]

National Technical Information Service            15, XI
National Telecommunications and Information       15, XXIII; 47, III, IV, V
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI
Natural Resource Revenue, Office of               30, XII
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy, Department of                               32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 5, IV; 45, 
                                                  VIII
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Utilities Service                           7, XVII, XVIII, XLII
Safety and Environmental Enforcement, Bureau of   30, II
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 20, III; 48, 23

[[Page 1209]]

Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State, Department of                              2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Tennessee Valley Authority                        5, LXIX; 18, XIII
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury, Department of the                       2, X;5, XXI; 12, XV; 17, 
                                                  IV; 31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
U.S. Copyright Office                             37, II
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs, Department of                   2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I, VII
World Agricultural Outlook Board                  7, XXXVIII

[[Page 1211]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2015 are enumerated in the following list. Entries indicate the 
nature of the changes effected. Page numbers refer to Federal Register 
pages. The user should consult the entries for chapters, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.govinfo.gov. For changes to this volume of the 
CFR prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 
1964-1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. 
The ``List of CFR Sections Affected 1986-2000'' is available at 
www.govinfo.gov.

                                  2015

5 CFR
                                                                   80 FR
                                                                    Page
Chapter II
1201.4 (p) through (s) added........................................4496
1201.56 Revised.....................................................4496
1201.57 Redesignated as 1201.58; new 1201.57 added..................4496
1201.58 Redesignated as 1201.59; redesignated from 1201.57..........4496
1201.59 Redesignated from 1201.58...................................4496
1201.183 (c)(3) removed............................................21153
    (a)(9) added...................................................66788
Chapter IV
Chapter IV Established.............................................32262
1400 Added.........................................................32262
Chapter VI
1600.37 Heading, introductory text, (c) and (d) revised; (e) added
                                                                   52173
1601.13 (a)(5) redesignated as (a)(6); new (a)(5) added; (a)(3), 
        (4) and new (6) revised....................................52173
1601.22 (a)(3) removed.............................................52174
1601.33 (a) amended................................................52174
1605.2 Heading, (b)(1)(i) and (c) revised..........................57069
1605.3 Added.......................................................57069
1605.13 (a)(3) revised.............................................57069
1605.16 (a) and (b) revised........................................57070
1605.22 (b)(2), (c)(2) and (3) revised.............................57070
1651.2 (d) amended.................................................52174
1651.19 (a) amended................................................52174
1653.31 (b) revised................................................52605
1653.33 (b)(2), (c)(3), (5) and (6) revised; (b)(3) added; (c)(1) 
        and (2) amended............................................52605
1653.34 (b) introductory text amended..............................52606
1653.35 Introductory text and (a) revised..........................52606
1653.36 (a), (c) and (g) amended; (d) introductory text revised; 
        (h) added..................................................52606
Chapter XIV
2418 Added.........................................................24780
2429.24 (d) revised; (f)(15) added..................................9190
Chapter XV
Chapter XV Removed.................................................13758
Chapter XVI
2600.101 (a) amended...............................................57072
2600.102 (a) and (b) revised.......................................57072
2600.103 Revised...................................................57072
2601.103 (a) and (d) amended.......................................57072
2601.105 Amended...................................................57072
2601.202 (a), (b), (d) and (f) revised.............................57072
2601.203 (a) revised...............................................57073
2601.204 Note revised..............................................57073
2601.301 (a), (b) and (c) introductory text revised................57073
2604 Revised.......................................................57073
2641 Appendix B amended............................................56894

[[Page 1212]]

Chapter XXI
3101.103 Note correctly revised.....................................7797
3101.104 (a) Note correctly revised.................................7797
Chapter XLVIII
5801 Authority citation revised....................................54232
Chapter C
Chapter C Established..............................................49118
10000-10002 Added..................................................49118

                                  2016

5 CFR
                                                                   81 FR
                                                                    Page
Chapter VIII
1820 Technical correction..........................................78021
1820.1 Revised.....................................................73016
1820.2 Revised.....................................................73017
1820.4 Revised.....................................................73017
1820.6 Revised.....................................................73017
1820.10 (Subpart A) Heading added..................................73018
1820.10 Revised....................................................73018
1820.11 Added......................................................73018
1820.12 Added......................................................73018
1820.13--1820.22 (Subpart B) Added.................................73018
1820.23 (Subpart C) Added..........................................73020
1820.24 (Subpart D) Added..........................................73020
1820.25 (Subpart E) Added..........................................73020
Chapter XIV
2417.101 (a)(1), (2), (b)(1) through (4) and (d) revised...........63362
2417.102 Introductory text, (a), (b), (d) and (e) revised..........63362
2417.103 Revised...................................................63362
2417.201--2417.210 (Subpart B) Heading revised.....................63362
2417.201 Revised...................................................63362
2417.202 Heading, introductory text, (f), (h), (i), (m), (n) and 
        (o) revised................................................63363
2417.203 introductory text, (a), (b) introductory text, (4) 
        through (7), (9) and (c) through (f) revised...............63363
2417.204 Revised...................................................63363
2417.205 Revised...................................................63363
2417.206 Revised...................................................63363
2417.207 (c) introductory text, (2) and (d) revised................63364
2417.208 Revised...................................................63364
2417.209 Revised...................................................63364
2417.210 Revised...................................................63364
2417.301 Revised...................................................63364
2417.401 (a) revised...............................................63364
Chapter XVI
2604.103 Amended; interim..........................................94216
2604.201 (b) introductory text and (4) revised; (c) removed; (d) 
        redesignated as new (c); interim...........................94216
2604.202 (a) revised; interim......................................94216
2604.303 (a) and (b)(4) revised; (b)(5) added; interim.............94216
2604.304 (b) revised; interim......................................94216
2604.305 (c) revised; interim......................................94216
2604.401 (a) revised; interim......................................94216
2604.503 (d) revised; interim......................................94216
2604.601 Revised; interim..........................................94217
2634 Authority citation revised....................................41789
2634.101 Revised; interim..........................................41789
2634.701 (b) revised; interim......................................41789
2634.702 Revised; interim..........................................41789
2634.703 Revised; interim..........................................41789
2635.201--2635.206 (Subpart B) Revised.............................81648
2636 Authority citation revised....................................41790
2636.104 (a) revised; interim......................................41790
2638 Revised.......................................................76273
2640.102 (b) amended; interim......................................61100
2641 Appendix B amended; eff. in part 3-29-17......................95854
Chapter XXV
3501 Authority citation revised....................................76290
3501.102 (a) revised; eff. 1-3-17..................................76290
3501.103 (b) heading and (1)(i) revised; eff. 1-3-17...............76290
Chapter XXXVI
Chapter established.................................................6167
4601 Added..........................................................6167
Chapter XCVIII
9801 Added; eff. 1-3-17............................................86563
Chapter C
10000.2 Amended....................................................93792
10000.6 (b)(3) and (5) revised; (c) introductory text amended......93792
10000.7 (a) revised; (b) and (c) amended...........................93792
10000.8 (h)(4) amended.............................................93792

                                  2017

5 CFR
                                                                   82 FR
                                                                    Page
Chapter II
1201.126 (a) amended...............................................25716
1201 Appendix II amended...........................................47083
Chapter VI
1600 Authority citation revised....................................60102
1600.14 Added......................................................60102

[[Page 1213]]

1600.19 (a), (b)(1) introductory text, (2), and (c) revised........60102
    (a) and (b)(1) corrected.......................................61129
1600.34 Revised....................................................60102
1600.35 (a) amended; (f) added.....................................60103
1600.37 Introductory text and (d) revised..........................60103
1601.13 Revised....................................................60103
1601.33 (a) amended................................................60103
1603.1 (b) amended.................................................60104
1603.2 Revised.....................................................60104
1603.3 (a) and (b) introductory text revised; (c) added............60104
1605.1 (b) amended.................................................60104
1605.3 (c) added...................................................60104
1605.11 (b) introductory text revised..............................60104
1605.14 (f) and (g) added..........................................60104
1605.31 (c)(1) and (d) revised; (c)(5) added.......................60105
1631.1 (j), (k) and (l) added......................................24826
1631.4 Heading and (a) revised.....................................24826
1631.5 Revised.....................................................24826
1631.6 (a)(1), (2), (3) and (e) amended............................24826
1631.8 (b) revised.................................................24826
1631.9 (a) amended; (b)(5) revised.................................24827
1631.10 (a) revised; (e) amended; (h) and (i) added................24827
1631.11 (a) introductory text, (1), (2) and (3) revised; (a)(4) 
        amended; (d) added.........................................24827
1631.14 (c)(3) amended.............................................24828
1631.15 (a) amended; (b)(1) revised; undesignated text after 
        (b)(1) removed; (b)(1)(ii) added...........................24828
1631.17 Revised....................................................24828
1631.19 Added......................................................24828
1650.33 (b) amended................................................60105
1651.3 (c)(3) revised.......................................21107, 60105
1690.1 Amended.....................................................60105
Chapter VIII
1800.1 Revised.....................................................26740
    Regulation at 82 FR 26740 eff. date delayed indefinitely.......32447
1800.2 Revised.....................................................26741
    Regulation at 82 FR 26741 eff. date delayed indefinitely.......32447
1820 Authority citation revised....................................15610
1820.3 Revised.....................................................15610
1820.5 (c) and (d) added...........................................15610
1820.6 Revised.....................................................15610
1820.7 (b)(6) revised..............................................15610
Chapter XIV
2411 Authority citation revised.....................................2850
2411.1 Revised......................................................2850
2411.2 Revised......................................................2850
2411.3 Revised......................................................2850
2411.4 (a), (b), (c), (e) and (f) revised...........................2850
2411.5 Revised......................................................2851
2411.6 Revised......................................................2851
2411.7 Revised......................................................2852
2411.8 (a) introductory text, (b), (c) introductory text, (1), 
        (2), (5), (d) and (e) revised...............................2852
2411.9 (a), (b), (d), (e)(2), (f), (g) introductory text, (h)(1), 
        (3), (4), (i) and (j) revised...............................2853
2411.10 Revised.....................................................2854
2411.11 Revised.....................................................2854
2411.12 Revised.....................................................2855
2411.13 (a)(1), (3) through (8), (b), (c)(2), (3), (4), (d)(2) 
        through (5) and (e) through (h) revised; (j) added..........2855
2411.14 Revised.....................................................2857
2411.15 Revised.....................................................2857
Chapter XVI
2634.304 (a), (b), (d) Example 1, Example 2, Example 3 and Example 
        4 amended..................................................22736
2634.701 (b) revised................................................8132
2634.702 Revised....................................................8132
2634.703 Revised....................................................8133
2634.907 (g)(1), (2), (3) and Example..............................22736
2635.204 (g)(3)(iv), (6) Example 1 and Example 4 amended...........22736
2636.104 (a) revised................................................8133
Chapter XXIII
Chapter XXIII Policy statement.....................................50491
Chapter XLVI
5601 Revised.......................................................50494
Chapter LXXXIII
9301.5 Revised; interim..............................................712
9301.6 (c)(1)(ii), (3)(i) and (d)(1) revised; interim................712
    (c)(1)(ii) and (d)(3) revised..................................28549
9301.8 (f)(3) added; interim.........................................712
    (f)(3) revised.................................................28550
Chapter LXXXIV
9401 Authority citation revised....................................35883
9401.102 Revised...................................................35883
9401.104 Revised...................................................35885
9401.105 (a) introductory text, (1), (b)(1) and (2) revised........35885
9401.106 Revised...................................................35885
9401.107 Revised...................................................35886

[[Page 1214]]

9401.108 Revised...................................................35886
9401.109 Heading, introductory text, (a)(5) and (b)(1) through (5) 
        revised; (b)(6) and (7) added..............................35887
9401.110 Revised...................................................35887
9401.111 Revised...................................................35887
Chapter XCVIII
9801.102 Revised; interim..........................................51333
9801.105 (d) and (i) revised; interim..............................51333
9801.301 (b)(2) revised; interim...................................51334
9801.401 (Subpart D) Added; interim................................51334

                                  2018

5 CFR
                                                                   83 FR
                                                                    Page
Chapter II
1201.126 (a) amended................................................1174
Chapter VI
1653.5 (e) revised.................................................47547
Chapter XIV
Chapter XIV Appendix A amended..............................46349, 54863
Chapter XVI
2634 Revised.......................................................33981
2634.701 (b) revised................................................2330
2634.702 Revised....................................................2330
2634.703 Revised....................................................2330
2636.104 (a) revised................................................2331
Chapter XCVIII
9800 Revised; interim..............................................49770
Chapter CI
Chapter CI Established; interim....................................54862
10101 Added; interim...............................................54862

                                  2019

5 CFR
                                                                   84 FR
                                                                    Page
Chapter II
1201.126 (a) amended................................................5584
Chapter III
1303 Revised.......................................................22951
Chapter VI
1650.1 (b) amended.................................................46420
1650.2 (a), (b), (f), (g), and (h) revised.........................46420
1650.11 (a) and (c) revised; (d) added.............................46420
1650.12 Revised....................................................46420
1650.13 Revised....................................................46420
1650.14 (c) removed; (d) through (l) redesignated as (c) through 
        (k); (a), (b), new (c), new (d), and new (h) revised.......46421
1650.15 Removed....................................................46421
1650.16 Revised....................................................46421
1650.17 (a) and (c) revised........................................46421
1650.21 Revised....................................................46421
1650.23 Revised....................................................46422
1650.24 Revised....................................................46422
1650.25 (a) revised................................................46422
1650.31 (a) and (c) revised; (d) removed...........................46422
1650.33 Revised....................................................46422
1650.41 Revised....................................................46422
1650.42 (a) revised................................................46422
1650.61 Revised....................................................46422
1650.62 (b) and (c) revised........................................46423
1651.1 (b) amended.................................................46423
1651.19 (c) revised................................................46423
1655.2 Revised; interim.............................................1601
Chapter VIII
1800.1 Regulation at 82 FR 26740 eff. 8-26-19......................35515
1800.2 Regulation at 82 FR 26741 eff. 8-26-19......................35515
Chapter XVI
2634.701 (b) revised................................................6054
2634.702 Revised....................................................6054
2634.703 Revised....................................................6054
2636.104 (a) revised................................................6055
Chapter XXXIII
Chapter XXXIII Heading revised.....................................37751
4301 Heading revised...............................................37751
4301.101 Amended...................................................37751
Chapter CI
Chapter CI Regulation at 83 FR 54862 confirmed.....................24701


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