OFFICE OF PERSONNEL MANAGEMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00154R000100030015-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 21
• Document Creation Date: January 4, 2017
• Document Release Date: April 10, 2008
• Sequence Number: 15
• Publication Date: October 21, 1980
• Content Type: REPORT

STAT
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a
Tuesday
October 21, 1980
Part IV
Office of Personnel
Management
Executive Personnel Financial Cisc!csure
Requirements; Employees gesponsibiiities
and Conduct; Flnal Rule
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?
ss~a.nn~awer'e
Tuesday
October 21, 1980
Pad IV
.Office of Personnel
anagement
Executive Personnel Financial i?9sclcsure
Requirements; Emplcyees -Responsibilities
and Conduct; Final Rule
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Federal Register / Vol. 45, No. 205 / Tuesday, October 21, if
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Parts 734 and 735
Executive Personnel Financial
Disclosure Requirements; Employees
Responsibilities and Conduct
AGENCY: Office of Personnel
Management.
ACTION: Final rule.
SUMMARY, Section 203(g) of the Ethics in
Government Act of 1978. as amended
(the "Act"], directs the Office of
Government Ethics ("OGE") to develop
and make available financial disclosure
forms for reporting the information
required of top-ranking personnel in the
executive branch under Title II of the
Act. The Office of Personnel
Management is publishing final
regulations establishing procedures for
the filing, review and public availability
of the reports filed by such officers and
employees.
EFFECTIVE DATE: November 20. 1980.
FOR FURTHER INFORMATION CONTACT:
Norman D. Smith or Jane S. Ley at (202)
632-7642.
SUPPLEMENTARY INFORMATION: The -
Office of Personnel Management
(" OP.i") is publishing final regulations
to state in greater detail than the Act the
information which must be contained in
the financial disclosure report (SF 278).
Typical situations are described by
examples, where appropriate and
p.acticable. The regulations cover,
among other subjects, the persons
required to file reports; the availability
of the reports to the public: potential .
civil liability in the event the reports are
used commercially, or for establishing
credit rating or, directly or indirectly, in
the solicitation cf :none,, for any,
political, charitable or other purpose.; the
requirements for qualifying a "blind"
trust under the r,ct; limited waiver
procedures; and remedial action which
be taken by agencies where the
financial reports disclose conflicts of
interest, actual or apparent. Proposed
regulations were published in the
Federal Register on :vlarch 25, 1980 (45
FR 19503-19518). Editorial revisions and
other changes have been made in order
to simplify and clarify the regulations.
Comments Received:
The notice of proposed rulemakiug
provided a 60-day period for public
comment. OPM received commerts from
27 agencies, law firms, and other
rrgst?izatinna includin; iuhur
organizations and public interest groups.
Several comments questioned various
asr:e:cts of the statutory rec?uirenieii!s of
Title lI of the Act. i-iowever. these
regulations merely implement the were questioned on the grounds that it
financial disclosure scheme of the Act . did not seem appropriate to require an
and cannot alter its fundamental - entire collection of rare objects to be
principles. publicly disclosed on the basis of
Most of the comments offered specific recurrent sales from that collection.
recommendations for clarifying or However, section 202(a)(3) of the Act
modifying specific provisions of the requires reporting of interests "in a
regulations as proposed. These trade or business, or for Investment or
recommendations were analyzed for the production of income." The test is.
compatibility with several'goals for the not that there be primarily a commercial
final regulations including: the purpose for disclosure to be required,
fulfillment of the legislative intent but that there is a nexus with the
embodied In Title II; the development of market. The fact that recurrent sales
an administrative system for disclosure have occurred demonstrates that
report preparation, processing, and . pecuniary factors are an aspect of the
review which is efficient and effective: holdings to the individual. The sales
the ability to retain and recruit Federal trigger of the rule as demonstrated in
executives who are both capable and revised Example (3) would not be
forthright; and the furtherance of an activated by a collector who makes tax-
awareness of conflict of interest and free exchanges for like-kind objects, as
other standards of conduct issues among such transactions are not considered
members of the Executive branch. sales.
Among the significant comments and Section 734.301(e)(1) (on reporting of
revisions, the following may be noted: liabilities) was modified to clarify that
In ? 734.105(h) the definition of the greatest amount owed to a creditor
income has been clarified. The net during a reporting period is to be
distributive share of partnership income disclosed.
rt
d
must be re
po
e
requirement that advice-and-consent a rote has been aaoptea in
nominees file public financial disclosure ? 734.303(b)(3)(ii) to make the reporting
reports, the exception for foreign service of gifts received by dependent children
officers, ? 734.201(c)(3), has been co-extensive with the reporting
expanded to include foreign service otherwise required for gifts received by
officers outside of the State Department. spouses.
This is appropriate in view of the In response to several comments.
manner in which their appointments are ? ? 734.403(b)(6) and 734.404(c)(8) (on
processed. communications between interested
The procedural rules on the exclusion parties and trustees) have been revised
of certain Schedule C employees from to conform to the formulation of section
public financial disclosure requirements 202(f)(3)(c)(vi) of the Act. Accordingly,
has been clarified. Section 734.203(c)(1) requests for distributions may be made
requires the requesting agency to make orally, However, the interested parties
an annual filing. may not specify whether any such
A new Example (3) has been added to distribution shall be made in cash or in
kind. 734.301(a) (on reporting of income) to ,ut
demonstrate that income in-kind and The question of what. should
certain discounts are required to be constitute a well-diversified portfolio of
treated as reportable income. readily marketable securities for
There were several inquiries on the qualified diversified trusts was raised in
treatment under ? 734.301(b) (on connection with the formulation which
reporting of purchases, sales and appears in ? 734.404(b). OPM feels that
exchanges) of transactions essentially the current definition best reflects the
treated by individuals as equivalent to Congressional intent and the portfolio
withdrawals and deposits in "personal distributions of typical appointees.
savings accounts." The regulations have The general rules for qualified trusts
been amplified to provide that these have been clarified to specifically
transactions with respect to Treasury provide that the terms of such a trust are
bills, money market mutual funds. and normally irrevocable. The forms may not
certificates of deposit issued by banking be amended, except with prior written
institutic s are not deemed purchases, approval (y 734.405(a)). it further
sales, or exchanges. revision clarifies that a trustee may not
Examp (I) of ? 734.3Gi(d) (on gifts acquire any property from an interested
and reimbursements) has been revised party without the prior written approval
to correct certain technical deficiencies. of the Director of The Office of
Several comments focused on the Covenment Ethics (? 734.405(d)(2))
rules contained in ~ 734.3 }1(dl (on Accordingly, in addition to approval of a
reporting interests in property). qualified trust's Initial portfolio, the
Proposed examples in that provision Director must give prior approval of any
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suhsrquent additions to the portfolio by
interested parties. -
In ? 734.406(b), the list of persons
eligible to be the independent trustee of
a qualified trust has been expanded to
include an investment adviser who
demonstrates to the satisfaction of the
Director of the Office of Government
Ethics general involvement in his or her
role as such an adviser in the
management or control of trusts.
The effective date rule for the
qualified trust provisions (? 734.408),
was modified to provide that although
such provisions would generally apply
to trusts qualified after October 26, 1978,
these trusts could be exempted by the
Director of the Office of Government
Ethics from specific provisions to avoid
impracticality or undue hardship.
The riles on the limitations on outside
earned income of advice-and-consent
appointees have been revised by
amending the definition in ? 734.501(b).
The modifications include specific
exemption of amounts received during a
period when not employed by the
Federal government. This resolves
computation difficulties arising when
there have been periods of both private
and Federal employment during a
calendar year.
Several comments raised objections
about the requirement that law
enforcement agents and other officials
must file a publicly available application
in order to inspect a financial disclosure
report (see Evampie (2) of ? 734.603f e))?
However, the only exception to this
requirement which was adopted relates
to Special Agents of the Federal Bureau
of Investigation who are conducting a
criminal. inquiry into possible conflict of
interest violations (see ? 734.603(c)).
In response to several comments on
the expedited procedure for review of
the public financial disclosure reports of
advice-and-consent Presidential
appointees (? 734.604(c)), a new rule
was added to paragraph (c)(4), regarding
failure to complete the required
processing within the established time
limits. The rule allows the Director of
the Office of Government Ethics to
modify the procedure in the case of a
particular department or agency upon a
determination that the modification is
necessary and appropriate for a class of
nominees: -
It should be noted that guidance as to
the requirements for financial disclosure
report prepare don by reporting
inrlividuais is contained in the
instructions which accompany the
report f 1:Tn (SF 2.78). -
The Office of Personnel Management
hits determined that this is a significant
regulation for the purposes of Executive
Crder 1204.1.
Office of Personnel Management,
Beverly M. Jones,
Issuance System Manager.
Accordingly, the Office of Personnel
Management is amending Title 5, Code
of Federal Regulations, as follows:
(1) A new Part 734 is added to read as
follows:
PART 734-EXECUTIVE PERSONNEL
FINANCIAL DISCLOSURE
REQUIREMENTS
Subpart A-General Provisions
sec '
734.101 Authority.
734.102 Purpose.
734.103 Agency regulations.
734.104 Policies.
734.105 Definitions
Subpart B-Persons.Required To File
734.201 General requirements for filing..
734.202 Reporting individual; defined.
734.203 Certain individuals excluded from
reporting requirements.
734.204 Employment of sixty days or less.
734.205 Special waiver of reporting
requirements.
Subpart C-Contents of Reports
734.301 Reports of incumbents.
734.302 Reports of other reporting
individuals.
734.303 Special rules.
734.304 Property categories.
Subpart D-Trusts
734.401 Qualified trusts, general
considerations.
734.402 Special rules in the case of certain
trusts.
734.403 Qualified blind gists.
734.404 Qualified diversified trusts.
74.405 Certification of trusts proposed for
qualification; other matters.
734.408 Independent tr'ustee;.defined.
734.407 Special filing requirements in the
. case of qualified trusts.
734.408 Effective date.
Subpart E-Special Provisions
734.501 Outside earned income.
734.502 Waivers.
Subpart F-Procedure
734.601 Report forms.
734.602 filing of reports.
734.603 Custody of and public access to
reports.
734.604 Review of reports.
734.005 Advice and opinions.
Subpart G--Penalties and Remedial Action
734.701 Failure to file or falsifying reports.
734.702 Certain actions in the case of
qualified trusts.
734.703 Misuse ci reports.
Appendix :A-Cif: tificate of' ndependence.
Appendix B--Certificate of Cimpiiarce.
Authority: Titles IT and IV of Pub. L. ,j5-521
(October 26,1978), as amended by Pub. L. Ja-
19 (June 13. 1979).
Subpart A-General Provisions
734.101 Authority.
'The regulations in this part are issued
pursuant to the authority of Titles II and.
IV of the Ethics in Government Act of
1978, ("the Act") (Pub. I. 95-521, as.
amended).
? 734.102 Purpose. '
These regulations supplement and
implement Title 11 of the Act; set forth .
more specifically certain procedures
provided in that title and furnish
examples, where appropriate.
? 734.103 Agency regulations.
Each agency may, subject to the prior
approval of the Office of Government
Ethics, issue regulations implementing
this part These regulations?
(a) Shall be -consistent with the Act
and with this part, and
(b) Shall impose no additional
reporting requirements on individuals
subject to the Act, except as may be
specifically authorized by statute or by
approval of the Office of Government
Ethics. Requests for this approval shall
be submitted in writing to the Office,
setting forth the need for any additional
reporting requirements by the agency
involved.
? 734.104 Pciicias.
(a)(1) Title U of the Ethics in
Cover.in-ient Act of 1578 requires high-
level Federal executives to disclose their
personal financial interests and thereby
demonstrate that they are able to carry
out their duties without compromising-
the public trust Puiiiic confidence in
Government goes hand in hand with an
open Government. Title II extends the
cleansing principle of "Sunshine" to
consideration of conflicts of interest
(2) Title II, as amplified and
implemented by these regulations of this
Fait 734, will serve to deter conflicts of
interest and to identify potential
conflicts of interest in the case of
newcomers to Government service by
providing for a systematic review cf the.
financial holdings of both current and
prospective officers and employees.
(3) Statements of income, assets and
liabilities must be reported by the
President and Vicc President of the
United Stater, presidential appointees,
those in the Senior Executive Service,
those in confidential or policyinaking
positions (ebedula C), and civil service
employe-es in grade_ GS--it; and ubeva
(a :d t e e uivai !it). including
conparabie officors e u iforrnad
and foreign services. These reports ar-o
available to the public. If anyone uses
them for commercial or credit rating
reasons or in connection with the
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Federal Register / Vol. 45, No, 208 (- Tuesday., October, 24, 1980 I Rules and Regulations
solicitation of money for any political, 152 of the Internal Revenue Code of
charitable or similar purpose, the 1954.
Attorney General may institute a civil (d) Designated agency ethics official.
action against such a person which may The term "designated agency ethics
result in a penalty not to exceed $5,000. official" means an officer or employee
h
(4) T
e reports are not net worth
statements. Only assets held as
investments and certain other items
must be recorded-not items for
personal use, such as a residence or
jewelry not held for sale. In most
who is designated by the head of the
agency to administer the provisions of
Title II of the Act and this part within an
agency, or the delegate of such an
official.
(e) Executive brunch. The term
instances, specific-values are not called "exacutive branch" includes each
for but rather items may be reported by executive department, military
six categories of value ranging from department. Government corporation
"$1,001 to $5,000" to "greater than and independent establishment and any
$250,000" as the highest category. other entity or administrative unit in the
(5) The reports do not cover certain executive branch unless such agency,
contributions under the Federal Election entity or unit is specifically included in -
Campaign Act or certain gifts under the. the coverage of Title I (relating to the
Foreign Gifts Act; see ? 734.301(c). . legislative branch) or Title III (relating to
(6) Nothing in the Act or this part the judicial branch) of the Act,
requiring reporting of information or the (f) Gift. The term "gift" means a
filing of any report shall be deemed to payment, advance, forbearance,
authorize the receipt of income, gifts, or rendering. or deposit of money, or
reimbursements, the holding of assets, . - anything of value, unless consideration
liabilities, or positions, or involvement
in transactions that are prohibited by'
law, Executive order or regulation.
(7) Personnel below the grade of GS-
16 continue to remain subject to the
financial reporting requirements
contained in the Office of Personnel
Management's regulations contained In -
Part 735 of this title. These statements,
however, are confidential and are not
available for public inspection.
(b) The provisions of Title U of the Act'
and this part requiring the reporting of
-information shall supersede any general
requirement relating to individuals -
specified by ? 734.202, under any other
provision of law or regulation on the
reYorting of information required for
purposes of preventing conflicts of
interest or apparent conflicts of fn tcrest.
Such provisions of Title II and this part
shall not supersede the requirements of
5 U.S.C..73'12 (relating to the Foreign
Gifts Act).
734.105 D 1 ntticns.
For purposes of this part:
(a) Act. The term "Act" means the
Ethics in Government Act of 1973 (Pub.
L. 95-521, as amended).
(b) Agency. The term "agency" means
any executive department, :1 tarry
deoartr ent, Government corporation or
independent establishment or agency.
(c) Dependent child The term
"dependent child" aneans, when used
with respect to any reporting individual,
a -ion. daughter, stepson, or
stepdaughter who---
i:.) Is unmarried and tinder ale 21 and
is ',tying in the household tai' the
reporting individual. or
"2) h a dependent of the reporting
inoidfdual within the meaning of ::action
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,
(4) Food and beverages consumed at
banquets, receptions, or similar events,
Cr
(5) Communications to the offices of a
reporting individual including
subscriptions to newspapers and
periodicals.
r
o
,
gi
s,
x
f
h
e
po sea
suc
has the meaning given such term for u o
individual other than those which are
purposes of the Federal 1.1ectien ('t) Provided by the United States
Campaign Act of 1971. An. honorarium is Government, -
defined in the regulations of the Federal 2) Required to be reported by the
Election Commission as a payment of reporting individual under 5 U.S.C. 7342
money or anything of value received by (relating tb the Foreign Gifts Act), or
an officer or employee of the Federal (3) Required to be reported under -
Government, if it is accepted as section 304 of the Federal Election
consideration or an appearance, speech, Campaign Act of 1971 (2 U.S.C. 434)
or article. The term does not include (relating to reports of campaign
payment for or provision of actual travel contributions).
and subsistence, including - (1) Relative. The term "relative"
transportation, accommodations, and means an individual who is related,to
meals of an officer or employee and the reporting individual, as father,
spouse or an aide, and does not include mother, son, daughter, brother, sister,
amounts paid or incurred for any agent's uncle, aunt, great aunt, great uncle, first
fees or commissions. See also the cousin, nephew, niece, husband, wife,
definitions of "Gift" in paragraph (f) and grandfather, grandmother, grmnds r.,.
"Reimbursement" in paragraph (k) of granddaughter, father-in-law, mc'her in-
this section. law. son-in-law, daughter-in-law,
(h) Income. The term "income" means brother-in-law, sister-in-law, stepfather,
all income from whatever source stepmother, stepson, stepdau liter.
derived, including but not limited to the Stepbrother, stepsister. halfbrother,
following items: Compensation for ha;fsieter. or who is the grandfather or
vices, including tees, commissions, grw dmothar of the spousu of the
and similar items: gross income. derived reporting individual, and shall be
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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 life insurance and endowment
contracts;' pensions; income from
discharge of indebtedness: net
distributive share of partnership Income:
and income from an interest in an estate
or trust. The term includes items,
whether or not taxable for Federal
income tax purposes, such as interest on
municipal bonds. Generally, income
means "gross income" as determined in
conformity with the principles of 26 CFR
1.61-1 through 1.61-15.
(I) Personal hospitality of any
individual. The term "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 that individual or
the family of such individual or on
property or facilities owned by that
individual or the family of such
individual.
(j) Personal Residence. The term
"personal residence" means any real
property used exclusively as a private
dwelling by the reporting individual or
his or her spouse, which is not rented for
any period during a calendar year.
There may be more than one personal
residence, and the term may include a
vacation home. The term is not limited
to' domicile.
(k) Reimbursement. The term
"reimbursement" means any payment or
other thing of value received by the
othe
t
reporting individual
than
ft
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deemed to include the fiance or fiancee
of'the reporting individual.
(m) Reporting individual. For the
definition of "reporting individual", see
? 734.202.
(n) Reviewing official. The term
"reviewing official" means the
designated agency ethics official, the
Secretary concerned, the head of the
agency, or the Director, Office of
Government Ethics, as the case may be.
(o) Secretary concerned. The term
"Secretary concerned" has the meaning
set forth in 10 U.S.C. 101(8) (relating to
the Secretaries of the Army, Navy and
Air Force, and certain other Secretaries),
and, in addition, means- `
(1) The Secretary of Commerce, in
matters concerning the National
Oceanic and Atmospheric
Administration, and
(2) The Secretary of Health and
Human Services. with-respect to matters
concerning the Public Health Service.
(p) Value. The term "value" means a
good faith estimate of the dollar value if
the exact value is neither known nor
easily obtainable by the reporting
individual. In the case of any interest in
property, such estimation shall be made
in accordance with the principles of
? 734.303(a).
Subpart B-Persons Required To File
? 734.201 General requirements for filing.
(a) incumbents. A reporting individual
who, during any calendar year, performs
t,e duties of his or her position or office
for a period in excess of 60 days shall -
file a report containing the information
prescribed in Subpart C of this part on
or before May 15 of the succeeding year.
(h) New entrants. Within 30 days of
assu:ning,a position or office described
in ? 734.202. a reporting individual shall
file a report containing the information
i'?: cl in subpart C of this
less such irdividaal~
(1) Has left another position referred
to in ? 731.2;?':: (with respect to which a
report under this section has previously
been tae:;) within the 30 days prior to
h s assuir,ption of such new position, or
(2) Has already filed such a report-
As a nominee for the new position,
or
;ii) As a candidate for the position.
con,.:p/e (11. Y. a GS-18 employee of the
'Pressure Department (who has previously
.lied renorts in accordance with the rules of
s'c'ico) ts..,., a
. h' esmmpioyment wi:h
~ at 1?apmrtm~ht c3:ttenrrory'19,1980, cod
h,r;ns employment with the Commerce
.::apartment on February 10. 1980, in a Senior
Executive Service position. Yis not a new
entrant since she has assumed a position
described in ; 734.202 within thine days of
leaving another position so described:
69779
Accordingly, she need not file a new report Example (11: The Federal Election
with the Commerce Department. ' Commission determined that.P became a
Nutet-While Ydid not have to file a new candidate for President in January of 1979. P
report with the Commerce Department. that will be required to file a financial disclosure
Department should request a copy of the report on or before May 15, 1979. If P had
report she had filed with the Treasury become a candidate on June 1. 1979. she
Department so that Commerce could would be -required to file a disclosure within
determine whether or not there would be any 30 days of that date.
conflicts or potential conflicts in connection Example (2).1f P withdraws from the race
with Y's new employment. in March of 1980, she will not be required to
Example (2f. If in Example t 1), Y, had left a file an annual disclosure report by May 15,
position with the Legislative branch in which 1990. as she has not continued to be a
she had been compensated at a rate equal to candidate until that date.
or in excess of GS-16, Y would, nevertheless, (e) Termination, of employment..On or
be a new entrant as her former position before that thirtieth day after
would not have been one described in- termination of employment from a
g 734.202..Y would have to rile a report with position or office described in ? 734.202,
the Commerce Department a reporting individual shall file a report
(c) Nominees. Within five days of the containing the information prescribed in
transmittal by the President to the Subpart C of this part for the period
Senate of the nomination of an from the end of the calendar year with
individual to a position, appointment to respect to which a report was last filed.
which requires the advice and consent pursuant to paragraph (a) of this section
of the Senate, the individual shall file a to the date on which the individual left
report containing the information such office or position. Notwithstanding
prescribed in Subpart C of this part. This the preceding sentence, in a case in
requirement shall not apply to any which the individual assumes
individual who is nominated to a employment in another position or office.
position as: described in ? 734.202 within 30 days of
(1) A judicial officer or employee such termination, no report shall be
covered by section 301(b) of the Act, required-by the provisions of this.
(2) An officer of the uniformed paragraph. See Example (1) in
services, or paragraph (b) of this section.
(3) A foreign service officer in the (f) Extensions. The reviewing official
State Department (or other department may, for good cause shown, grant to any
or agency). employee or class of employees an
See ? 734.604(c), relating to expi.d!ted extension of up to 45 days. The Director.
procedure in the case of individuals Office of Government Ethics, for good
described in the first sentence of this cause uhown, may gran, an additional
paragraph (c); however, those extension of up to 45 days. The
individuals referred to in paragraph employee shall set forth specific reasons
(c)(2) or (c)(3) of this section, shall file for an additional extension which shall
their reports in accordance with be forwarded to the Director, through
the reviewing official, who shall also
paragraph (b) of this section.
(d) Candidates. (1) Within 30 days'of submit his or her comments on the
request.
bet omin a candidate in a calendar yr! r
for nomination. or election to the office ? 724.202 Peaoriin individual; del oo
of President or Vice is
determined by the Feder,i Election
Commission, or
(2) On or before May 15 of that
calendar year,
For purposes of ;his part the term
reporting individual" is ciudes-
(a) The President;
(n.) The Vie President:
(c) Each officer .:,r etnt:!eyee in the
whichever is later, and an or before May executive branch. including a special
15 of each successive year an individual Government employee as defined in 1.6
continues to be a candidate. he or she. U.S.C. 202, whose ,)osition i3 classified
except for an incumbent President or at CS-16 or above of the General
Vice President, shall file a report Schedule prescribed by 5 U.S.C. 5332, or
containing the information prescribed in the rate of basic payf:or which is fixed,
Subpart C.of this part, Notwithstanding other than ender the General Schedule,
this requirement in any calendar year in at a rate equal o or greater than the
-which an individual continues to be a minimum rate of basic pay fixed for GS-
Candidate for any office but all elections 10; each member of a uniformed service
for such office relating to such whose pay grade is at or in excess of 0-7
Candidacy were held in prior calendar Under 37 U.S.C. 201; and each officer or
years, the individual need not file a employee in any other position
report unless he or she becomes a - deters ined by `he Director of the Office
candidate for another vacancy in that - of Government Ethics to be of eouai
office or another office during that year. classification:
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.69780 Federal Register] Vol. 45, No. 205 /.Tuesday,October. 2t, 3980 / #ules and Regulations
Example (r): Foreign service officers in the For example, such individuals may this part for an individual who is
State Department rated as FSO I or 2 must include chauffeurs, private secretaries,. reasonably expected to perform, or has
file a report since they have a rate of basic
pay equal to or greater than the basic rate of stenographers and those who hold performed, the duties of his or her office
positions of similar nature where or position for fewer than 130 days in a
consist
t
ith th
b
i
en
w
e
as
c criterion set calendar year, but only if the Director
(d) Each employee who is an
administrative law employee forth in the preceding sentence. ' determines that- -
judge appointed (c) Procedure. (1) The exclusion of any (1) The individual is a special
pursuant to 5 U.S.C. 3105; - individual from reporting requirements Government employee (as defined in 18
(e) Any employee not described in pursuant to this section will be effective U.S.C. ? 202) who performs temporary
paragraph (c) of this section who is in a ae- Of the time the employing agency or duties position in the executive branch which other governments] entity files with the ntermittentrbO s s full-time or
is excepted from the competitive service Office of Government Ethics a-list and (2) The individual ill able to provide
by reason of being of a confidential or description of each position for which services specially needed by the
policymaking character;, exclusion is sought, as well as the Government.
(f) The Postmaster General, the , . identity of its current occupant. Such a (3) It is unlikely that the individual's
Deputy Postmaster General, each list showing any additions or deletions outside employment or financial
Governor of the Board of Governors of
"'""''" "? " Office of Government Ethics on or (4) Public financial disclosure b the
States Postal Service or Postal Rate by
Commission whose basic rate of pay is before May 15. ` individual is not necessary in the
l to ion whose than the minimum (2) In the event that the Office of _ circumstances. greater rate of basic pay fixed for m
ini 18; and Government Ethics finds that one or (b) Procedure. (1) The individual must
CS-
(g) The Director of the Office of more positions has been improperly _ file a request for a waiver with the
Government Ethics and each designated excluded, it will advise the agency or Office of Government, Ethics within 10
sne win serve more than 60 days in any
calendar year, or
(ii) The expiration of the 60 days,
whichever is earlier. The request shall
state the reasons the individual believes
the conditions of paragraph (a)(1)
through (4) of this section are met in the
particular case, and the request shall be
filed with the report otherwise renuired
- (2) As determined by the Director
paragraph (e) of this section, any ?.734.204 Employment of sixty days or
employee excluded from the reporting less.
requirements of this part by virtue of a (a) In general. Any reporting
determination under ? 734.203 shall not individual who-
be deemed to be a reporting individual. (1) As determined by the designated
For purposes of ? 734.201(e), status as a agency ethics official or Secretary
retorting individual shall continue for a concerned, in a case to which the
period of 30 days after termination of provisions of ?.734.201(b) or (e) would
employment from a position or office to otherwise apply, or
(on nominees) would otherwise apply,
to which the provisions of. ? 734.201(c)
of 1 n ;?? *-_1 - ? ?.., ?,,.....un i g`vup - not reasonably expected to perform the
dividuals
f
d
?
in
7342
02(e)
,
Office of Government Ethics, in a case
of a a non rnn
duties of his or her office or position for
r n,
iiri
Ion DOSeteoris
Pn
ti
al
policymaking-character) may. bey
excluded from the reporting
requirements of this part in cases in
shall not be subject to the reporting
requirements of ? '34.201(b), (c.), or, (e),
-
which the Director, office of respectively.
o f
agra ithsta
h
the
Government Ethics, determines, in his or (b)
ons
pa
f
i
t her sole discretion, that such exclusion provisions of paragraph (a) of this
would not affect adversely the integrity performs ooerif th the the reporting g individual
his or her office or
f h Government
confidence n the t or the public's position for more than 60 days in a
t
integrity of the calendar year, the report otherwise
Government. required by-
(b) Exclusion cietermrnatinns, The (1) Section 734,.'_ ib) or (c) shall be.
determination deco ibed in paragraph riled within '15 calendar days after the
(ai cf this section has been made for the sixty-first day of that performance
following individuals and groups of uni ss the individual has filed a request
individuals wid, therefore, they may be for a waiver under ? 734.205(b), and
excluded from the. reporting
requirements of this part pursuant to 'he (2) Section 734 ) (on tei
provisions of paragraph (c) o this reports) ) w steaal ll be filed d as provided d in in that
h
section: paragraph,
(1) Individuals in any position ?734.205 Special waiver of reporting
classified below GS-16. or the rate of requirements.
basic pay for which is less than the (a) General rule. In unusual
minimum rate of basic pay fixed for GS-' circumstances, the Director, Office of
Iwho have no role in advising or Government Ethics, may grant a request
making polic determinallons with for a waiver of any reporting
respect to agency programs or policies, requirement otherwise applicable under
(2) The Office of Government Ethics
shall seek advice from the agency in
which the individual serves as to its
views on the Justification for the waiver.
(3) In the event the waiver is granted,
the report shall not be subject to the
public disclosure requirements of
? 734.602; however, the waiver request
and grant of waiver shall be subject to
those requirements. In the event that the
waiver is not granted, all such legends
shall be removed and the report shall be
subject to the public disclosure
requirements; however, the, waiver
request shall not be subject to those
requirements.
Subpart C-Contents of Reports
? 734.301 Reports of incumbents.
;ach report filed pursuant to
? 734.201(a) shall include a full and
complete statement, on the form
prescribed by the Office of Government
Ethics and in accordance with
instructions issued by the Office, on the
following:
(a) Income.-(1) in general. The
source and amount or value of-
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(1) Income, including type of income, and Indicate the category of the amount of must report the sale of the building under
other than that referred to in paragraph rent received pursuant to paragraph (a)(2) of paragraph (b) of this section, but he need not
(a)(2) of this section and other than that this section. disclose the sale under paragraph (a)(2) of
from current employment by the United Example 04' An official has three savings this section. as it did not result In a capital
States Government, and accounts with Bank A. One is in his name gain.
and earned $85 in interest. One Is in a joint
(ii) Any honoraria, including the date, account with his wife and earned $120 in (c) Gifts and reimbursements.-(1) In
received during the preceding calendar Interest. One is in his name and his general. The identity of the source, a
year which from any source total $100 or dependent daughter's name and earned $35 in brief description, and the value of all
more in value. interest. The official must disclose the name, gifts (other than gifts'described in
For special rules on spouses and of the bank and the category of the total paragraph (c)(2) of this section) from
dependent children, see 734.303(b). amount of interest earned from all three any source other than a relative of the
accounts. He must also disclose the accounts reportingindividual, received during the
Example (I). The types of Income which under paragraph (d) of this section if in the I d h
d
i
Example (2J: An official is asked to speak - _ _- -.._.. o _W_.0 r._ r., ......~_ pen and pencil set, and a letter opener from a
calendar year; communi e
at a banquet in Washington about his hobby (1) Of real property, other than a ry ervice organization she has
which is unrelated to his public duties. He is personal residence of the worked with solely in her private capacity. If
given $200 for doing so. Whether or not reporting any one of the gifts is valued at at least $100,
acceptance of the payment is permitted by individual or spouse, and she must disclose that gift. If any one gift is
the regulations of his agency, the $200 (2) Of stocks, bonds, commodities valued at less than $100 she need not report
received must be reported as income futures, and other forms of securities, the gift unless the organization had during
pursuant to paragraph (a)(1)(ii) of this which shall be categorized as to each that same reporting year given her other.
section, as it is an honorarium (as defined in transaction in accordance with item(s) whose value when aggregated would
? 734.105(g)). The value of the meal received ? 734.304, in any case in which the fair equal-$100 or more. For purposes of
at the banquet need not be disclosed. (See market value of such property exceed aggregation she need not count items valued
? 734.105 (fj(4) and (g)). $1000 at $35 or less; see paragraph (c)(5) of ttus
Excmple (31., An official is a participant in section. For method of valuation see
Notwithstanding paragraphs (b)(1) and paragraph c
a bona fide retirement plan of Coastal (2) of this section, any transaction solely Git 1Print)Value $75
Airlines. Pursuant to such plan. the official
and his spouse receive passage on some by and between the reporting individual. Gift 2-Pen *and pencil set: $40
Coastal flights without charge; they receive the spouse, and dependent children Gift 3-Letter opener. S20
passage on other flights at a discount fare, need not be reported. For purposes of The official must disclose Gifts 1 and 2,
The difference between what Coastal charges this paragraph, transactions involving but not Gift 3.
members of the public generally and what the Treasury bills, money market mutual (2) Cer tart gifts, The id sc ntity of the
official and his wife are charged for a funds, and certificates of deposit issued source, a brief description, and the value
particular flight (if charged at all) is deemed by banking institutions are not deemed of any gifts of transportation, lodging,
income in-kind. Such income in-kind is purchases, sales, or exchanges when r
required to be reported separately under food, or eniertainm2nt f. om any source
paragraph (a)(1) of ttesection. effected at rates, terms, and conditions other than a relative of the reciting
available generally to members of the individual, received during the
(2) Certain income. The source and public. preceding calendar year which total
type of income which consists of
liana: plc (I): An official sells her personal $250 or more in value. f? letcv(thstanding
dividends, rents, interest, and capital residence in Virginia for $100,000 and the preceding sentence, any food, ,
Gains from any source, received during purchases a residence-in the District of Pert laiv ai
the preceding lendar which p lodging or en.,.. al tg of n, received cos t11:
C "a year Columbia for $200,000; She realized a gain Cl `Personal hospitality of any :luai"
exceeds $100 in amount or value, which the sale of the Virginia home of $30,000, She ryie4 net. be repo: i tl: (Sec .10 O.)
shaii be categorized as to the total need not report the sale of the Virginia
amount or value of each item in . residence or the purchase of the D.C. Example (1): An official receives the
accordance with the following table: residence under paragraph (b) of this section. following items from a single source:
E. ampI,, (2): An official sells his beach 1. Dinner at a restaurant-650
(i) Not :none tht?Il:1,000; '?
home in Maryland 2. Round-trip taxi fare to meet donor at the
f ii) C renter than $1,000 but not more has rented it out for it ot fone r^na e month every ery a he F
resta?_raat--;e3:i.
than 52,500; summer, it does nct qualify as a personal 3. Dinner at donor's city residence-(value
(iii) Greater than $2,500 but not more residence. Ile must disclose the sale under uncertain)
than 55,000; paragraph (b) of this section :,rid any capital 4. Round-trip airline transportation to donor's
(iv) ;greater than $5,000 but not more gain realized on the sale under paragraph country home-5230
than 815,000; (a)(2) of this section. _ 5. Weekend it donor's country home
(v) Greater than $15,000 but not more Ezomvle (3J: An official sells :i ranch to ;its tnriuding duck hunting and tennis match-
than $50,1:4'0: dependent daughter. The official need not (value uncertain)
(vi) Greater than $50,000 but not more report the sale under paragraph (b) of this 1"he official need only disclose Gifts 1 and 4.
than $100. '00' and section because it is a transaction between Gifts 3 and Sneed not be discloser; because
Jr, l Cre3ter r the reporting individual a: d 3 der,_i..ant they tail withir. the excenticr, for ersonai
(' t than `,100.000. child. if the daughter were no longer a ' hospitality of an individual." (See
Example (I).? An official rents out a portion dependent child the sale and any capital ? 734.105(i).; Girt 2 while .rther?.vise
of her residence. She receives rental income gain. except for that portion attributable to a disclosable need not be aggregated with Gifts
of S600 from one individual for four months personal residence, would have to be I and 4 because it is valued less than X35.
and $1200 ''tom another individual for the disclosed. (See paragraph (c)(4) of this section.)
remaining eight months of the year covered Example (4J: An official sells an apartment Example (2J: An official accepts a number
by the report. She must identify the property, building and realizes a ides of 5100.000. He of Livitations for dinner at restaurants in the
ulg ca en ar year w mo
l total
should be disclosed do include: (I) Outside aggregate they total more than $5,000 in that ps eee
hank- $100 or more in value. Gifts received
tut renstons, and (b) Purchases, sales and exchanges of requirements of this See
(iii) A partner's net distributive share of certain property. A brief description paragraph.
partnership income from a commercial .,_. r ? 734.104(a).
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'3JtlC^j, i`jl"?." a,r. ,
69732 Federal Register
s
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Vol. 45, No. 205-1 Tuesday, October 21. 1980 / Rules and Regulations
city. The dinners are valued at more than $35 The reporting individual need not ask the
and in the aggregate are more than $250. The donor to see the check.
Invitations are for purely personal reasons (5} be minimis exception. Any gift
and are from one individual. Nevertheless, with a fair market value of $35 or less .
the official must report these dinners because
they do not fall within the definition of need not be aggregated for purposes of
"personal hospitality of any individual." See this paragraph (c). The acceptance of
? 734.105(i). The official can request a waiver these gifts is subject to the restrictions
of this reporting requirement pursuant to imposed by Executive Order 11222 and
? 734.303(g). If granted, the waiver is public regulations promulgated thereunder as
. (3) Reimbursements. The identity of is the acceptance of the gifts of $35 or
the source. a brief description.. and the more.
value of any reimbursements not (6) Cross-reference. For special
otherwise reportable under the waiver in the case of certain gifts see
Navr D&VIAD w uJ,a suupnrt receives - - - --- - - ?- from sales of any paintings pursuant to
during the preceding calendar year dInterests in property.-41) In
paragraph this section, and all the
which from any source total $250 or general. A brief description of any paintings he e retains as interests in property
more in value from any source. interest in property held at the close of pursuant to paragraph (d) of this section. The
the preceding calendar year in a trade or Office of Government Ethics deems recurrent
Example (1): An official is asked to speak business, or for investment or the sales from a collection or related holdings to
at an out-of-town meeting on a matter which
is production of income, having a fair ` remove the collection and such holdings from
unrelated to his official duties and his market value in excess of $1,000, which the exemption for purely personal items from
agency. The round trip air fare is more than
$250. If the official shall be categorized as to the fair market public financial disclosure under-section 202
pays for the ticket and is of the Act.
then reimbursed by the organization to which value of each item in accordance with Example (4): Reporting individual R has
he spoke, he must disclose this 1734.304. Each item of real and personal several commodity transactions in calendar
reimbursement under paragraph (c)(3) of this property shall be disclosed separately. year 1979, as follows:
section. If the organization simply provided (2) Exceptions. Notwithstanding the
the ticket, this must be disclc ed as a gift provisions of paragraph (d)(1) of this (include Positions. date ofles) 4ase and date of sale
under paragraph (c)(2) of this section. s short sales)
section. the following shall not be ~,_ ,_, _ _ _ ., _ _ _ ? _ __
disclose the deposits as the total value of the
deposits in any one bank do not exceed
$5,000. Nevertheless, the source and amount
of Interest income would have to be disclosed
under paragraph (a)(2) if It exceeds $100.
Example (3): Reporting individual 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 recurrent sales of both less
desirable post-impressionist works from his
collection and paintings of various schools
which he acquired through inheritance. Under
assigned to a gift or reimbursement is its reporting individual by a relative, No. (2) -2 contracts June 1980 Gold (Comex).
fair market value. For most (ii) Personal savings accounts in a 12/13/79.6/19/79
reimbursements this will be the a .mount single financial institution or holdings in No. (3)-1 contract February 1980 Gold
actually received. For gifts and non-cash a single money market mutual fund, in (Comex). open position [carried over to
reimbursements the value should be the case of a reporting individual, 19801 8/17/79
determined in one of the following
manners:
(i) If the gift has been newly
have deposits or holdings, respectively,
aggregating $5,000 or less in that .
market, the value shall be its retail price. (iii) A personal residence of the
The reporting individual need not reporting individual or spouse.
No. (4)-3 contracts August 1980 Gold
(Comex), 5/13/79, 9/19/79.
(i)Position No. (1) is an interest in property
which, since it was held as of the close of
calendar year 1979, is reported under
paragraph (d) of this section as an interest in
property (if the $1.000 fair market value
crit