mittees, who are not a "consultant" or "expert" as those terms are defined in Chapter 304 of the Federal Personnel Manual;

(B) Physicians, dentists, and allied medical specialists engaged only in providing service to patients;

(C) Veterinarians providing only veterinary services;

(D) Lecturers participating only in educational activities;

(E) Chaplains performing only religious services;

(F) Individuals in the motion picture and television fields who are utilized only as in DOD productions;

(G) Members of selection panels for NROTC candidates;

(H) Reserve officers on active duty solely for training.

(2) Time of submission—(i) Initial statement. Affected naval personnel shall submit a DD Form 1555 to their appropriate supervisor within 30 days of assuming duties requiring the submission of such statements. The information shall be current as of the filing date. Upon transfer or reassignment from one position to another for which the filing of a statement is required, individuals shall submit a current statement to the appropriate supervisor of their new position.

(ii) Annual statements. Affected naval personnel shall submit a DD Form 1555 to their appropriate supervisor by 31 October of each year, with information current as of 30 September of that year. Even though no changes have occurred since the last filing, a complete statement is required.

(iii) Extension of filing deadline. When required by reason of duty assignment, infirmity, or other good cause, an appropriate supervisor, with the concurrence of the cognizant ethics counselor, may grant an extension of the filing deadline, not to exceed 45 days. Any annual statement filed after 31 October shall include an appropriate notation as to whether any extension of the filing deadline has been granted.

(p) Review and disposition of DD Form 1555-(1) Review. Upon receipt of a Confidential Statement of Affiliations and Financial Interests, the appropriate supervisor shall review the

statement in accordance with the standards set forth in paragraph (b) of this section, record his or her evaluation in the appropriate block on the form, and forward it to the cognizant ethics counselor for further review. If the ethics counselor agrees with the supervisor's evaluation, he or she shall note concurrence on the statement and return it to the appropriate supervisor for disposition in accordance with paragraph (p)(2) below. If the ethics counselor disagrees with the supervisor's evaluation, he or she shall forward a recommendation for appropriate resolution to the reporting individual's commanding officer or head of activity for implementation. If the commanding officer or head of activity disagrees with the recommendation of the ethics counselor and resolution of the matter is not achieved, the commanding officer or head of activity shall append his or her comments and recommendations to the record and forward the matter to the cognizant deputy ethics official who shall render a final decision. Local review and resolution of conflicts or apparent conflicts of interest disclosed in annual statements shall be accomplished by 30 November of each year and within 30 days after filing in cases where an extension has been granted and in the case of initial reports.

(2) Disposition. Confidential Statements of Affiliations and Financial Interests and a complete record of all action taken thereon shall be retained for a period of six years in a central location within the command or activity to which the reporting individual was assigned at the time of filing, after which time they may be destroyed.

(q) Review of positions and notification to file (DD Form 1555). Commanding officers and heads of activities shall ensure that position descriptions of individuals described in paragraphs (o)(1)(iii) and (0)(1)(iv) of this section contain a statement that the incumbent must file a Confidential Statement of Affiliations and Financial Interests. All new or revised position descriptions shall be reviewed to determine those requiring such statements. Any individual may request review of a decision requiring submission of a statement by him or her

through established personnel of the Department. Additionally, commanding officers and heads of activities shall notify in writing naval personnel required to file Confidential Statements by 30 September of each year, and shall furnish a DD Form 1555 to them. Lists shall be maintained to ensure that all statements have been completed and returned by 31 October, or as otherwise specified when extensions have been granted.

(r) Availability of DD Form 1555. Supplies of DD Form 1555 are available from the Commanding Officer, Naval Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, Pennsylvania 19120, under Stock Number 0102-LF-001-5550.

(s) Privacy Act considerations. Financial Disclosure Reports (SF-278) and Confidential Statements of Affiliations and Financial Interests (DD Form 1555) contain sensitive personal information. Completed SF-278's are releasable to Government officers and employees and to the public, but only upon submission of a completed Request to Inspect or Receive Copies of SF-278, Financial Disclosure Report (OPM Form 1401) to the deputy ethics official having custody of the report. Naval personnel officially responsible within the chain of command for reviewing or approving a given individual's SF-278 need not submit such requests. Otherwise, care shall be exercised to ensure that completed SF278's and DD Forms 1555 are seen only by personnel on a need-to-know basis in connection with their official duties. Adequate safeguards shall be utilized to prevent inadvertent or unauthorized disclosure of the completed forms and statements during review, transmittal, and storage. In addition, SECNAVINST 5211.5C prescribes other general restrictions and requirements applicable to the collection, use, and dissemination of these records, and contains Rules of Conduct under the Privacy Act which are applicable to all naval personnel.

(t) Effect of disclosure. The reporting of information or the filing of any report or statement of financial circumstances shall not be deemed to authorize the receipt of income, gifts, honoraria or reimbursements, the

holding of assets, liabilities, or positions, or involvement in transactions otherwise prohibited by law, Executive Order, or regulation.

[50 FR 9010, Mar. 6, 1985; 50 FR 15892, Apr. 23, 1985]

§ 721.17 Procedures for administrative enforcement of post employment restrictions of 18 U.S.C. 207.

(a) Basic procedures. The administrative enforcement of restrictions on post employment activities imposed by 18 U.S.C. 207 will be accomplished in accordance with 5 CFR 737.27 and these procedures.

(b) Delegation of authority. Authority to administer proceedings under these provisions is delegated to the General Counsel of the Navy with power to redelegate.

(c) Initiation of administrative disciplinary hearing. (1) On receipt of information regarding a possible violation of 18 U.S.C. 207, and after determining that such information is not frivolous, the General Counsel expeditiously shall provide such information, along with any comments, to the Director, Office of Government Ethics, and to the Criminal Division, Department of Justice, and shall coordinate any investigation or possible administrative disciplinary action with the Department of Justice. If that Department advises that it does not intend to institute criminal proceedings, such coordination shall no longer be required.

(2) Upon receipt of advice from the Department of Justice that it does not intend to institute criminal proceedings, in circumstances where it has been determined, after appropriate review, that there is reasonable cause to believe that a former Department of the Navy officer or employee (hereafter referred to as a "former employee") has violated 18 U.S.C. 207 (a), (b), or (c) or implementing regulations, the General Counsel will refer the case to the head of the activity where the alleged violation occurred. The activity head may initiate an administrative disciplinary proceeding by providing the former employee with notice of the alleged violation. The privacy of former employees shall be protected

as to allegations made prior to a determination of sufficient cause to initiate an administrative disciplinary proceeding.

(d) Content of notice. (1) Notice must include:

(i) A statement of allegations, and the basis thereof, sufficiently detailed to enable the former officer or employee to prepare a defense;

(ii) Notification of the right to a hearing;

(iii) The procedure for requesting a hearing;

(iv) A statement to the effect that if the former employee fails to request such a hearing, the Department of the Navy may, nevertheless, take disciplinary action if the former employee is determined to have violated 18 U.S.C.

207.

(2) A copy of these Procedures for Administrative Enforcement shall be provided with this notice.

(e) Request for a hearing. (1) Any former employee who is notified of an alleged violation of 18 U.S.C. 207 pursuant to paragraph (c)(2) of this section may, within 20 days from the date of such notice, request a hearing by writing to the activity head who issued the notice.

(2) If the former employee fails to request a hearing in accordance with paragraph (c)(1) of this section, the activity head will notify the General Counsel who may, nevertheless, render a final administrative decision in the matter and, if appropriate, impose the sanctions specified in paragraph (k) of this section.

(f) Hearing examiner. (1) The presiding official shall be an individual to whom the General Counsel has delegated authority to make an initial decision (hereafter referred to as a "hearing examiner").

(2) A hearing examiner shall be an attorney with not less than five years experience in the practice of law subsequent to admission to the bar.

(3) A hearing examiner shall be impartial. An individual who has participated in any manner in the decision to initiate proceedings may not serve as a hearing examiner in those proceedings.

(g) Time, date, and place of hearing. (1) The hearing shall be held at a reasonable time, date, and place.

(2) The date of the hearing shall be established with due regard to the former employee's need for adequate time to prepare a defense properly and the need to resolve expeditiously allegations that may be damaging to his or her reputation.

(h) Hearing Rights. The subject of the hearing shall have, at a minimum, the following rights:

(1) To represent himself or herself, or to be represented by counsel;

(2) To introduce and examine witnesses, and to submit physical evidence;

(3) To confront and cross-examine witnesses;

(4) To stipulate as to facts not in issue;

(5) To present oral argument; and (6) To receive a transcript or recording of the proceedings.

(i) Burden of proof. The Department of the Navy has the burden of proof. A violation is established only by a preponderance of the evidence.

(j) Decision. (1) Upon conclusion of the hearing, the hearing examiner shall make a determination exclusively upon matters of record in the proceeding, which determination shall be in the form of a written decision. This decision [hereafter referred to as the "initial decision"] shall include all findings of fact and conclusions of law relevant to the matters at issue, including possibly mitigating circumstances. In cases where a violation is found to have occurred, the initial decision shall also include a recommendation as to what measures would constitute appropriate action. The initial decision shall be transmitted to the General Counsel, via the activity head, and a copy shall be mailed or otherwise furnished to the affected former employee.

(2) Within 20 days following receipt of a copy of the initial decision, the former employee may file an appeal with the General Counsel. An appeal shall be in writing, and shall set forth all errors of fact, or law, or both, together with the reasons therefor, alleged to exist in the initial decision.

(3) Upon review of the initial decision, and any appeal timely filed, the General Counsel shall issue a written decision which shall be based solely upon the record of the proceedings, or those portions thereof cited by the parties to limit the issues. If the General Counsel modifies or reverses the initial decision, findings of fact or conclusions of law that differ from those of the hearing examiner shall be specified. The decision of the General Counsel shall be deemed a final administrative determination.

(k) Administrative sanctions. The General Counsel may take appropriate disciplinary action in the case of any former employee found in violation of 18 U.S.C. 207 (a)-(c) or implementing regulations by:

(1) Prohibiting the former employee from making, on behalf of any other person, except the United States, any formal or informal appearance before, or, with the intent to influence, any oral or written communication to, the Department of the Navy, its officers or employees, on any matter of business, for a period not to exceed five years. This may be enforced by directing present officers and employees of the Department to refuse to participate in any such appearance, or to accept any such communication; and (2) Taking other appropriate disciplinary action.

(1) Judicial review. Any person found in violation, as described, may seek judicial review of the final administrative determination.

[50 FR 9014, Mar. 6, 1985; 50 FR 15892, Apr. 23, 1985]

8721.18 Bedrock standards of conduct for

Department of the Navy personnel.

(a) To maintain public confidence in the integrity of the Department of the Navy which is essential to the performance of its mission, all naval personnel shall comply with the standards of conduct listed in this section.

(b) Avoid any action, whether or not specifically prohibited, which might result in or reasonably be expected to create the appearance of:

(1) Using public office for private gain,

(2) Giving preferential treatment to any person or entity,

(3) Impeding Government efficiency or economy,

(4) Losing complete independence or impartiality,

(5) Making a Government decision outside official channels, or

(6) Adversely affecting the confidence of the public in the integrity of the Government.

(c) Do not engage in any activity or acquire or retain any financial interest which results in a conflict between your private interest and the public interest of the United States related to your duties.

(d) Do not engage in any activity that might result in or reasonably be expected to create the appearance of a conflict of interest.

(e) Do not accept gratuities from defense contractors.

(f) Do not use your official position to influence any person to provide any private benefit.

(g) Do not use inside information to further a private gain.

(h) Do not use your rank, title, or position for commercial purposes.

(i) Avoid outside employment or activity that is incompatible with your duties or may bring discredit to the Navy.

(j) Never take or use Government property or services for other than officially approved purposes.

(k) Do not give gifts to your superiors or accept them from your subordinates. (Consult § 721.6 for situations considered to fall outside this rule.)

(1) Conduct no official business with persons whose participation in the transaction would be in violation of

law.

(m) Seek ways to promote efficiency and economy in Government operation and public confidence in its integrity.

PART 722-REPORTING PROCEDURES ON DEFENSE RELATED EMPLOYMENT

Sec.

722.1 Purpose.

722.2 Scope and effect.

722.3 Persons required to file form DD 1787.

722.4 Filing and review procedures. 722.5-722.6 [Reserved]

Sec.

722.7 Availability of forms.

AUTHORITY: 5 U.S.C. 301; 10 U.S.C. 166 and 5031; 50 U.S.C. 1436.

SOURCE: 41 FR 34745, Aug. 17, 1976, unless otherwise noted.

§ 722.1 Purpose.

This Part 722 implements 50 U.S.C. 1436 and Part 166 of this title, which establish requirements and procedures for annual filing and review of reports of Department of Defense (DoD) and defense related employment (form DD 1787) submitted by:

(a) Certain categories of civilian officers and employees of the Department of Defense who were formerly employed by defense prime contractors, and

(b) Certain categories of former military officers and former DoD civilian officers and employees who were subsequently employed by defense prime contractors.

8722.2 Scope and effect.

The provisions of this part apply to all Navy and Marine Corps activities, and to the Department of the Navy personnel and former or retired personnel indicated in § 722.3, including personnel of Navy or Marine Corps nonappropriated fund activities. An individual who is required to file a report of DoD and defense related employment (form DD 1787) and fails to do so for any reason is subject under 50 U.S.C. 1436 to a penalty of six months imprisonment, a fine of $1,000, or both.

§ 722.3 Persons required to file form DD 1787.

(a) Criteria. The Department of the Navy personnel and former or retired personnel indicated below shall file form DD 1787 with the Secretary of the Navy, in the manner prescribed in § 722.4, not later than January 15 following the close of any fiscal year in which all the specified conditions

occur.

(1) Civilian personnel formerly employed by defense prime contractors. A civilian officer or employee of the Department of the Navy, including a consultant or part-time employee, shall file form DD 1787, if:

(i) He was employed during any part of the fiscal year by the Department of the Navy or another DoD component at a salary rate at least equal to the minimum rate for grade GS-13;

(ii) At any time during the threeyear period preceding the beginning of the fiscal year, he was employed by or performed services for a defense prime contractor, as defined in paragraph (b) (2) of this § 722.3, at a salary rate of at least $15,000 per year; and

(iii) Such defense prime contractor received $10 million or more of negotiated defense contracts during the fiscal year.

(2) Former civilian personnel subsequently employed by defense prime contractors. A former civilian officer or employee of the Department of the Navy, including a consultant or parttime employee, shall file form DD 1787, if:

(i) During any part of the fiscal year, he was employed by or performed services for a defense prime contractor, as defined in paragraph (b)(2) of this § 722.3, at a salary rate of at least $15,000 per year;

(ii) Such defense prime contractor received at least $10 million of negotiated defense contracts during fiscal year;

the

(iii) The employee's last employment with the Department of the Navy was terminated not more than three years prior to the beginning of the fiscal year; and

(iv) At any time during the threeyear period preceding the termination of his last employment by the Department of the Navy, he was paid at a rate at least equal to the minimum rate provided at the time for grade GS-13.

(3) Former military officers subsequently employed by defense prime contractors. A former officer, including a retired officer, of the Navy, Marine Corps, Naval Reserve, or Marine Corps Reserve, who served on extended active duty for at least 10 years and was serving in the grade of lieutenant commander, major, or above, at the time of retirement or release from or termination of extended active duty, shall file a form DD 1787, if: