Employee Rules of Conduct

DEPARTMENT OF THE TREASURY

31 CFR Part 0

Employee Rules of Conduct

AGENCY: Department of the Treasury.

ACTION: Interim rule.

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SUMMARY: The Department of the Treasury is issuing the Employee Rules

of Conduct which will prescribe uniform rules of conduct and procedure

for all employees and officials in the Department.

DATES: This interim rule is effective June 1, 1995. Comments must be

received or postmarked on or before July 3, 1995.

ADDRESSES: Comments should be submitted to the Office of the Assistant

General Counsel (General Law and Ethics), Department of the Treasury,

Room 1410, Washington, DC 20220, Attention: Mr. R. Peter Rittling or by

e-mail at the following address Peter.R[email protected].

FOR FURTHER INFORMATION CONTACT: Stephen J. McHale, Henry H. Booth, or

R. Peter Rittling, Office of the Assistant General Counsel (General Law

and Ethics), Department of the Treasury, telephone (202) 622-0450, FAX

(202) 622-1176, e-mail Peter.R[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

On August 7, 1992, the Office of Government Ethics (OGE) published

the Standards of Ethical Conduct for Employees of the Executive Branch

(5 CFR Part 2635). The Executive Branch-wide Standards became effective

on February 3, 1993, superseding many, but not all, of the Department-

wide conduct rules published at 31 CFR Part 0 (see also the grace

period extension at 59 FR 4779-4780, February 2, 1994). This rule

making repeals part 0 in its entirety and issues a new part 0. The new

part 0 includes conduct rules previously published in part 0 that were

not superseded and continue to be important to the efficient

functioning of the Department. Many of the regulations included in the

Rules of Conduct have been revised pursuant to changes in the law or

Department policy.

Simultaneously, in a separate rule making, the Department is

issuing as a final rule the Supplemental Standards of Ethical Conduct

for Employees of the Department of the Treasury. The Supplemental

Standards, to be codified at 5 CFR chapter XXI, prescribe Department-

specific ethics regulations supplemental to the Executive Branch-wide

Standards.

II. Analysis of the Regulations

Subpart A--General Provisions

The provisions contained in subpart A state the policy and purpose

of the Rules of Conduct and the responsibilities of the Department's

employees and officials in implementing and complying with the included

regulations. Subpart A also includes a definitional section. The United

States Savings Bonds Division is omitted from the definition of Bureau

in Sec. 0.103 because it was assumed into the Bureau of the Public Debt

and no longer exists as a separate component of the Department.

Subpart B--Rules of Conduct

Subpart B sets out the conduct regulations that all Department

employees and officials are required to follow. Generally, the rules

regulate employee conduct including, for example, the use of Government

vehicles or the use of controlled substances and intoxicants while an

employee is on duty or on Government property. Regulations concerning

conflicts of interest and ethics are contained in the Executive Branch-

wide Standards and the Treasury Supplemental Standards.

Subpart C--Special Government Employees

Section 0.301 of subpart C explains that, with little variation,

special Government employees employed with the Department are required

to comply with the Rules of Conduct to the same degree as regular

employees. Further, Sec. 0.303 requires a special Government employee,

serving concurrently with another Federal agency, to inform the

Department of that fact so that the Department may take the appropriate

administrative actions and avoid any conflict in duties or

remuneration.

Subpart D--Advisers to the Department

Subpart D includes a definition of adviser to the Department and

instructs individuals uncertain about their relationship with the

Department to seek advice from the appropriate ethics official.

Further, Sec. 0.401(b) explains that it is the Department's policy that

advisers should refer to the Rules of Conduct for guidance when working

with the Department even though they are not required to follow the

Rules.

III. Matters of Regulatory Procedure

Administrative Procedure Act

The Department finds that good cause exists for waiving the notice

and comment requirements contained in 5 U.S.C. 553(b) and (d). The

Department of the Treasury Employee Rules of Conduct contain statements

of policy, interpretive rules, and conduct regulations relating solely

to agency management and personnel. Moreover, this rule making

essentially reissues in revised form many of the conduct rules

previously published in 31 CFR Part 0. However, because this rule may

be improved, comments may be submitted on or before July 3, 1995. All

comments will be analyzed and any appropriate changes to the rule will

be incorporated in the subsequent publication of the final rule.

Executive Order 12866, Regulatory Planning and Review

This rule is limited to agency organization, management and

personnel matters; therefore, it is not subject to Executive Order

12866.

Regulatory Flexibility Act

It is hereby certified that this rule will not have a significant

economic impact on a substantial number of small entities. This rule

affects only Federal employees.

List of Subjects in 31 CFR Part 0

Government employees.

Dated: January 29, 1995.

Edward S. Knight,

General Counsel, Department of the Treasury.

For the reasons set forth in the preamble, 31 CFR part 0 is revised

to read as follows:

PART 0--DEPARTMENT OF THE TREASURY EMPLOYEE RULES OF CONDUCT

Subpart A--General Provisions

Sec.

0.101 Purpose.

0.102 Policy.

0.103 Definitions. [[Page 28536]]

Responsibilities

0.104 Designated Agency Ethics Official and Alternate Designated

Agency Ethics Official.

0.105 Deputy Ethics Official.

0.106 Bureau Heads.

0.107 Employees.

Subpart B--Rules of Conduct

0.201 Political activity.

0.202 Strikes.

0.203 Gifts or gratuities from foreign governments.

0.204 Use of controlled substances and intoxicants.

0.205 Care of documents and data.

0.206 Disclosure of information.

0.207 Cooperation with official inquiries.

0.208 Falsification of official records.

0.209 Use of Government vehicles.

0.210 Conduct while on official duty or on Government property.

0.211 Soliciting, selling and canvassing.

0.212 Influencing legislation or petitioning Congress.

0.213 General conduct prejudicial to the Government.

0.214 Nondiscrimination.

0.215 Possession of weapons and explosives.

0.216 Privacy Act.

0.217 Personal financial interests.

Subpart C--Special Government Employees

0.301 Applicability of subpart B.

0.302 Service with other Federal agencies.

Subpart D--Advisers to the Department

0.401 Advisers to the Department.

Authority: 5 U.S.C. 301.

Subpart A--General Provisions

Sec. 0.101 Purpose.

(a) The Department of the Treasury Employee Rules of Conduct

(Rules) are separate from and additional to the Standards of Ethical

Conduct for Employees of the Executive Branch (Executive Branch-wide

Standards) (5 CFR part 2635) and the Supplemental Standards of Ethical

Conduct for Employees of the Department of the Treasury (Treasury

Supplemental Standards) (to be codified at 5 CFR part 3101). The Rules

prescribe employee rules of conduct and procedure and provide for

disciplinary action for the violation of the Rules, the Treasury

Supplemental Standards, the Executive Branch-wide Standards, and any

other rule, regulation or law governing Department employees.

(b) The Rules are not all-inclusive and may be modified by

interpretive guidelines and procedures issued by the Department's

bureaus. The absence of a specific published rule of conduct covering

an action does not constitute a condonation of that action or indicate

that the action would not result in corrective or disciplinary action.

Sec. 0.102 Policy.

(a) All employees and officials of the Department are required to

follow the rules of conduct and procedure contained in the Rules, the

Treasury Supplemental Standards, the Executive Branch-wide Standards of

Ethical Conduct, the Employee Responsibilities and Conduct (5 CFR part

735), and any bureau issued rules.

(b) Employees found in violation of the Rules, the Treasury

Supplemental Standards, the Executive Branch-wide Standards or any

applicable bureau rule may be instructed to take remedial or corrective

action to eliminate the conflict. Remedial action may include, but is

not limited to:

(1) Reassignment of work duties;

(2) Disqualification from a particular assignment;

(3) Divestment of a conflicting interest; or

(4) Other appropriate action.

(c) Employees found in violation of the Rules, the Treasury

Supplemental Standards, the Executive Branch-wide Standards or any

applicable bureau rule may be disciplined in proportion to the gravity

of the offense committed, including removal. Disciplinary action will

be taken in accordance with applicable laws and regulations and after

consideration of the employee's explanation and any mitigating factors.

Further, disciplinary action may include any additional penalty

prescribed by law.

Sec. 0.103 Definitions.

The following definitions are used throughout this part: (a)

Adviser means a person who provides advice to the Department as a

representative of an outside group and is not an employee or special

Government employee as those terms are defined in Sec. 0.103.

(b) Bureau means:

(1) Bureau of Alcohol, Tobacco and Firearms;

(2) Bureau of Engraving and Printing;

(3) Bureau of the Public Debt;

(4) Departmental Offices;

(5) Federal Law Enforcement Training Center;

(6) Financial Management Service;

(7) Internal Revenue Service;

(8) Legal Division;

(9) Office of the Comptroller of the Currency;

(10) Office of the Inspector General;

(11) Office of Thrift Supervision;

(12) United States Customs Service;

(13) United States Mint;

(14) United States Secret Service; and

(15) Any organization designated as a bureau by the Secretary

pursuant to appropriate authority.

(c) Person means an individual, corporation and subsidiaries it

controls, company, association, firm, partnership, society, joint stock

company, or any other organization or institution as specified in 5 CFR

2635.102(k).

(d) Regular employee or employee means an officer or employee of

the Department of the Treasury but does not include a special

Government employee.

(e) Special Government employee means an officer or employee who 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. See 18 U.S.C. 202(a).

Responsibilities

Sec. 0.104 Designated Agency Ethics Official and Alternate Designated

Agency Ethics Official.

The Deputy General Counsel is the Department's Designated Agency

Ethics Official (DAEO). The DAEO is responsible for managing the

Department's ethics program, including coordinating ethics counseling

and interpreting questions of conflicts of interest and other matters

that arise under the Executive Branch-wide Standards and Treasury

Supplemental Standards and Rules. See 5 CFR 2638.203. The Senior

Counsel for Ethics is the Alternate Designated Agency Ethics Official.

Sec. 0.105 Deputy Ethics Official.

The Chief Counsel or Legal Counsel for a bureau, or a designee, is

the Deputy Ethics Official for that bureau. The Legal Counsel for the

Financial Crimes Enforcement Network is the Deputy Ethics Official for

that organization. It is the responsibility of the Deputy Ethics

Official to give authoritative advice and guidance on conflicts of

interest and other matters arising under the Executive Branch-wide

Standards, Treasury Supplemental Standards, and the Rules.

Sec. 0.106 Bureau Heads.

Bureau heads or designees are required to:

(a) Provide all employees with a copy of Executive Order 12674, as

amended by Executive Order 12731, the Executive Branch-wide Standards,

the Treasury Supplemental Standards and the Rules; provide all new

employees with an explanation of the contents and application of the

Executive Branch-wide Standards, Treasury Supplemental Standards and

the Rules; and provide all departing employees with an explanation of

the applicable post-employment restrictions contained in 18

[[Page 28537]] U.S.C. 207 and 5 CFR part 2641 and any other applicable

law or regulation.

(b) Provide guidance and assistance to supervisors and employees in

implementing and adhering to the rules and procedures included in the

Executive Branch-wide Standards and Treasury Supplemental Standards and

Rules; obtain any necessary legal advice or interpretation from the

Designated Agency Ethics Official or a Deputy Ethics Official; and

inform employees as to how and from whom they may obtain additional

clarification or interpretation of the Executive Branch-wide Standards,

Treasury Supplemental Standards, Rules, and any other relevant law,

rule or regulation.

(c) Take appropriate corrective or disciplinary action against an

employee who violates the Executive Branch-wide Standards, Treasury

Supplemental Standards or Rules, or any other applicable law, rule or

regulation, and against a supervisor who fails to carry out his

responsibilities in taking or recommending corrective or disciplinary

action when appropriate against an employee who has committed an

offense.

Sec. 0.107 Employees.

(a) Employees are required to:

(1) Read and follow the rules and procedures contained in the

Executive Branch-wide Standards, Treasury Supplemental Standards, and

Rules;

(2) Request clarification or interpretation from a supervisor or

ethics official if the application of a rule contained in the Executive

Branch-wide Standards, Treasury Supplemental Standards, or Rules is not

clear;

(3) Report to the Inspector General or to the appropriate internal

affairs office of the Bureau of Alcohol, Tobacco and Firearms, Customs

Service, Internal Revenue Service, or Secret Service, any information

indicating that an employee, former employee, contractor,

subcontractor, or potential contractor engaged in criminal conduct or

that an employee or former employee violated the Executive Branch-wide

Standards or the Treasury Supplemental Standards or Rules. Legal

Division attorneys acquiring this type of information during the

representation of a bureau shall report it to the appropriate Chief or

Legal Counsel or the Deputy General Counsel, who shall report such

information to the Inspector General or appropriate internal affairs

office; and

(4) Report to the Inspector General information defined in

paragraph (a)(3) of this section relating to foreign intelligence or

national security, as covered in Executive Order 12356. Legal Division

attorneys acquiring this type of information during the representation

of a bureau shall report it to the Deputy General Counsel, who shall

report such information to the Inspector General.

(b) The confidentiality of the source of the information reported

to the Inspector General or the internal affairs office under this

section will be maintained to the extent appropriate under the

circumstances.

Subpart B--Rules of Conduct

Sec. 0.201 Political activity.

(a) Employees may:

(1) Take an active part in political management or in political

campaigns to the extent permitted by law (5 U.S.C. 7321-7326); and

(2) Vote as they choose and express their opinions on political

subjects and candidates.

(b) Employees may not use their official authority or influence to

interfere with or affect election results.

(c) Employees may be disqualified from employment for knowingly

supporting or advocating the violent overthrow of our constitutional

form of government.

Note: The Hatch Act Reform Amendments of 1993 significantly

reduced the statutory restrictions on the political activity of most

Department employees. However, career members of the Senior

Executive Service and employees of the Secret Service, the Internal

Revenue Service, Office of Criminal Investigation, the Customs

Service, Office of Investigative Programs, and the Bureau of

Alcohol, Tobacco and Firearms, Office of Law Enforcement, remain

subject to significant restrictions on their political activities.

Sec. 0.202 Strikes.

Employees shall not strike against the Government.

Sec. 0.203 Gifts or gratuities from foreign governments.

(a) The United States Constitution prohibits employees from

accepting gifts, emoluments, offices, or titles from a foreign

government without the consent of the Congress. Congress has consented

to an employee accepting and retaining a gift from a foreign government

that is of minimal value and offered as a souvenir or mark of courtesy,

unless otherwise prohibited by bureau regulation (5 U.S.C. 7342).

Minimal value is prescribed in 41 CFR part 101-49 and was set at

$225.00 on the date that the Rules became effective.

(b) All gifts exceeding minimal value, the refusal of which would

likely cause offense or embarrassment or otherwise adversely affect the

foreign relations of the United States, shall be accepted and deposited

with the Department within sixty days of acceptance. If the gift is

travel or expenses for travel taking place entirely outside the United

States, it shall be reported within thirty days (see 5 U.S.C.

7342(c)(1)(B)(ii)).

(c) As used in paragraph (b) of this section, Deposit with the

Department means delivery to the Department Gift Unit or other

depository as authorized by the Treasury Directive on Foreign Gifts

(Treasury Directive 61-04).

(d) All foreign gifts must be reported as prescribed in the

Treasury Directive on Foreign Gifts (Treasury Directive 61-04).

Sec. 0.204 Use of controlled substances and intoxicants.

Employees shall not sell, use or possess controlled substances or

intoxicants in violation of the law while on Department property or

official duty, or use a controlled substance or intoxicant in a manner

that adversely affects their work performance.

Sec. 0.205 Care of documents and data.

(a) Employees shall not conceal, remove, alter, destroy, mutilate

or access documents or data in the custody of the Federal Government

without proper authority.

(b) Employees are required to care for documents according to

Federal law and regulation, and Department procedure (18 U.S.C. 2071, 5

U.S.C. 552, 552a).

(c) The term documents includes, but is not limited to, any

writing, recording, computer tape or disk, blueprint, photograph, or

other physical object on which information is recorded.

Sec. 0.206 Disclosure of information.

Employees shall not disclose official information without proper

authority, pursuant to Department or bureau regulation. Employees

authorized to make disclosures should respond promptly and courteously

to requests from the public for information when permitted to do so by

law (31 CFR 1.9, 1.10, and 1.28(b)).

Sec. 0.207 Cooperation with official inquiries.

Employees shall respond to questions truthfully and under oath when

required, whether orally or in writing, and must provide documents and

other materials concerning matters of official interest when directed

to do so by competent Treasury authority.

Sec. 0.208 Falsification of official records.

Employees shall not intentionally make false, misleading or

ambiguous statements, orally or in writing, in connection with any

matter of official interest. Matters of official interest include among

other things: Transactions with the public, [[Page 28538]] government

agencies or fellow employees; application forms and other forms that

serve as a basis for appointment, reassignment, promotion or other

personnel action; vouchers; leave records and time and attendance

records; work reports of any nature or accounts of any kind;

affidavits; entry or record of any matter relating to or connected with

an employee's duties; and reports of any moneys or securities received,

held or paid to, for or on behalf of the United States.

Sec. 0.209 Use of Government vehicles.

Employees shall not use Government vehicles for unofficial

purposes, including to transport unauthorized passengers. The use of

Government vehicles for transporting employees between their domiciles

and places of employment must be authorized by statute (See, e.g., 31

U.S.C. 1344).

Sec. 0.210 Conduct while on official duty or on Government property.

Employees must adhere to the regulations controlling conduct when

they are on official duty or in or on Government property, including

the Treasury Building, Treasury Annex Building and grounds; the Bureau

of Engraving and Printing buildings and grounds; the United States Mint

buildings and grounds; the grounds of the Federal Law Enforcement

Training Center; and Treasury-occupied General Services Administration

buildings and grounds (see 31 CFR parts 91, 407, 605, 700).

Sec. 0.211 Soliciting, selling and canvassing.

Employees shall not solicit, make collections, canvass for the sale

of any article, or distribute literature or advertising in any space

occupied by the Department without appropriate authority.

Sec. 0.212 Influencing legislation or petitioning Congress.

(a) Employees shall not use Government time, money, or property to

petition a Member of Congress to favor or oppose any legislation. This

prohibition does not apply to the official handling, through the proper

channels, of matters relating to legislation in which the Department of

the Treasury has an interest.

(b) Employees, individually or collectively, may petition Congress

or Members of Congress or furnish information to either House of

Congress when not using Government time, money or property (5 U.S.C.

7211).

Sec. 0.213 General conduct prejudicial to the Government.

Employees shall not engage in criminal, infamous, dishonest, or

notoriously disgraceful conduct, or any other conduct prejudicial to

the Government.

Sec. 0.214 Nondiscrimination.

(a) Employees shall not discriminate against or harass any other

employee, applicant for employment or person dealing with the

Department on official business on the basis of race, color, religion,

national origin, sex, sexual orientation, age, or disability. Sexual

harassment is a form of sex discrimination and is prohibited by this

section.

(b) An employee who engages in discriminatory conduct may be

disciplined under these rules. However, this section does not create

any enforceable legal rights in any person.

Sec. 0.215 Possession of weapons and explosives.

(a) Employees shall not possess firearms, explosives, or other

dangerous or deadly weapons, either openly or concealed, while on

Government property or official duty.

(b) The prohibition in paragraph (a) of this section does not apply

to employees who are required to possess weapons or explosives in the

performance of their official duties.

Sec. 0.216 Privacy Act.

Employees involved in the design, development, operation, or

maintenance of any system of records or in maintaining records subject

to the Privacy Act of 1974, as amended (5 U.S.C. 552a), shall comply

with the conduct regulations delineated in 31 CFR 1.28(b).

Sec. 0.217 Personal financial interests.

(a) Employees may hold the following financial interests without

violating 18 U.S.C. 208(a):

(1) The stocks or bonds of a publicly traded corporation with a

value of $1000 or less; and

(2) The stocks or bonds in the investment portfolio of a

diversified mutual fund in which an employee has invested.

(b) The Department has found that the financial interests listed in

paragraph (a) of this section are too remote and inconsequential to

affect the integrity of an employee's service.

Subpart C--Special Government Employees

Sec. 0.301 Applicability of subpart B.

The rules of conduct contained in subpart B of this part apply to

special Government employees employed with the Treasury Department. The

regulations contained in Sec. 0.201 of subpart B, concerning political

activity, apply to special Government employees only on the days that

they serve the Department. Treasury bureaus are responsible for

informing special Government employees employed with them of the

applicability of bureau specific statutes or regulations.

Sec. 0.302 Service with other Federal agencies.

A special Government employee serving concurrently in the

Department and in a Federal agency other than the Department is

required to inform the Department and the agency in which he serves of

the arrangement so that appropriate administrative measures may be

taken.

Subpart D--Advisers to the Department

Sec. 0.401 Advisers to the Department.

(a) An adviser or advisory committee member includes an individual

who provides advice to the Department as a representative of an outside

group and is not an employee or special Government employee of the

Department. Questions concerning whether an individual serves the

Department in the capacity of an adviser, employee, or special

Government employee shall be addressed to the Designated Agency Ethics

Official or a Deputy Ethics Official.

(b) Advisers or advisory committee members are not required to

follow the Rules and are not generally required by the Department to

file financial disclosure statements; nevertheless, they should be

guided by the regulations in this part covering such issues as public

disclosure of official information (Sec. 0.206), conduct (Sec. 0.211

and Sec. 0.213), and gifts or gratuities from Foreign governments

(Sec. 0.203).

[FR Doc. 95-13318 Filed 5-31-95; 8:45 am]

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