34440 Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations

s u m m a r y : This document makes a

correction concerning the revision of the

special additional requirements for

packaging and labeling animal biologies

appearing in a final rule captioned

"Viruses, Serums, Toxins, and

Analogous Products; Packaging and

Labeling and Standard Requirements,"

which was published in the Federal

Register on May 14,1985 (50 FR 20085).

FOR FURTHER INFORMATION CONTACT:

Dr. Peter L. Joseph, Senior Staff

Veterinarian, Veterinary Biologies Staff,

VS, APHIS, USDA, Room 838, Federal

Building, 6505 Belcrest Road,

Hyattsville, MD 20782, 301-436-6332.

SUPPLEMENTARY INFORMATION: The

Animal and Plant Health Inspection

Service, USDA, promulgated regulations

revising the labeling recommendations

for veterinary biological products on

May 14,1985 (50 FR 20085). The

recommendation that inactivated rabies

vaccine be injected in one site in the

thigh, and the statement that “in high

risk areas annual revaccination is

recommended" were to have been

deleted. This was not done in the case

of the annual revaccination

recommendation. Therefore, § 112.7(c)(4)

of the regulations should be deleted.

Also, § 112.7(c)(3) should be deleted

because the same subject matter is

covered by § 112.7(c)(2).

Other revisions of the regulations

resulted in reparagraphing. The

requirements in 9 CFR 112.7(m) for a

cautionary statement to be included on

labels for modified live virus canine

hepatitis and modified live virus canine

adenovirus Type 2 products regarding

corneal opacity was revised and the

section designation was changed to 9

CFR 112.7(1). Therefore, this document

removes 9 CFR 112.7(m) which should

have been deleted.

PART 112—PACKAGING AND LABEL

REQUIREMENT

Accordingly, 9 CFR Part 112 is

corrected as follows:

1. The authority citation for Part 112 is

revised to read as follows:

Authority: 21 U.S.C. 151-159; 7 CFR 2.17, 

2.51, and 371.2(d).

§112.7 [Corrected]

2. For the reasons set out in the

Supplementary Information, § 112.7

Special additional requirements, is

corrected as follows:

In § 112.7, paragraphs (c) (3) and (4)

and (m) are removed.

Done at Washington, DC, this 24th day of 

September, 1986.

J.K. Atwell,

Deputy Administrator, Veterinary Services.

[FR Doc. 86-21959 Filed 9-26-86; 8:45 am] 

BILLING CODE 3410-34-M

FEDERAL ELECTION COMMISSION

11 CFR Part 7

[Notice 1986-9]

Standards of Conduct for Agency

Employees

AGENCY: Federal Election Commission.

ACTION: Final rule.

SUMMARY: The Commission has adopted

regulations setting forth Standards of

Conduct governing the conduct of

Commissioners, employees, special

Commission employees, and former

employees. This new part implements

the Ethics in Government Act of 1978

(Pub. L. 95-521) and other laws and

regulations dealing with Federal

employee standards of conduct. These

regulations seek to facilitate the proper

performance of Commission business

and to encourage citizen confidence in

the impartiality and integrity of the

Commission.

Specifically, this part sets forth

regulations pertaining to the acceptance

of gifts, entertainment, and favors;

outside employment; teaching, lecturing,

and writing; business and financial

interests; political and other outside

activities; and the use of Government

information and property. In addition,

the rules provide procedures for

enforcing the post-employment

restrictions of the Ethics in Government

Act of 1978. These regulations also

provide for an Ethics Officer for the

Commission whose duties include the

investigation of suspected violations of

this Part and the maintenance of an

interpretation and advisory service to

answer questions concerning conflicts of

interest and other matters covered by

this Part.

The regulations incorporate the

Commission’s current Code o f Ethics

with the exception of Section D of the

Code. In addition, they generally follow

similar provisions contained in

Executive Order 11222, 30 FR 6469, at 5

CFR 735.101 through 735.306, and at

§ 737.27. Executive Order 11222, issued

on May 21,1965, prescribes standards of

ethical conduct for Executive agency

personnel. 5 CFR 735.101 through 735.306

contain regulations promulgated by the

Office of Government Ethics as model

standards of responsibilitis and conduct

for Executive agency employees and

special employees, pursuant to

Executive Order 11222 and to the Ethics

in Government Act. 5 CFR 737.27

provides procedures for administrative

enforcement proceedings concerning

violations of the post employment

conflict of interest restrictions contained

in 18 U.S.C. 207.

EFFECTIVE DATE: October 29,1986.

FOR FURTHER INFORMATION CONTACT:

Ms. Susan E. Propper, Assistant General

Counsel, 999 E Street, NW., Washington,

DC 20463. (202) 376-5690 or Toll Free

(800) 424-9530.

SUPPLEMENTARY INFORMATION: On

October 21,1985, the Commission

published a Notice of Proposed

Rulemaking regarding its proposal to

adopt formally regulations setting forth

Standards of Conduct governing the

conduct of Commissioners, employees,

special Commission employees, and

former employees. One comment, from

the Office of Government Ethics (OGE),

was received.

Having considered the comment

received, the Commission is now

publishing the final rules, together with

a statement explaining their basis and

purpose in accordance with the

Administrative Procedure Act, 5 U.S.C.

553(c). The final rules reflect several

clarifying changes from the draft rules.

In its comments OGE urged the

Commission to establish a regulatory

system for reviewing public financial

disclosure reports filed by Commission

members and personnel for potential

conflicts of interest. The Commission

construed this suggestion as one calling

for an ongoing review system. Nothing

in the model ethics regulations

prescribed by OGE addresses this issue.

The Commission could find no other

agencies which have a written

regulatory review procedure for these

reports. Because the actual number of

reports submitted within the

Commission is less than one dozen, the

informal review process now being used

has been found to be responsive to the

goal of maintaining high ethical

standards. When conflicts arise, recusal

by the interested parties remedies them.

Therefore, the Commission will continue

to handle such matters as it has in the

past.

The Commission has also decided not

to include in these rules provisions

concerning the filing of confidential

statements of financial interests by

employees below the GS-16 level

pursuant to the Ethics in Government

Act as amended, pending OGE

development of concrete guidelines as to

the extent, shape and form of such

confidential financial statements and/or
Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations 34441

the publication by OGE of model

regulations in this regard.

OGE’s final comment on the

Commission’s proposed regulations was

that the Commission had failed to confer

with that Office prior to publication.

During its consideration of the Notice of

Proposed Rulemaking, the Commission

considered whether it should submit the

proposed rules to OGE prior to

publication. Since there is no legal

requirement that the Commission

comply with such a request, the

Commission did not do so. Moreover,

the notice procedure granted OGE

adequate opportunity to review and

comment on the proposed regulations.

Therefore, any failure to submit the

regulations to OGE prior to publication

does not provide a basis for challenging

the validity of the regulations.

Basis and Purpose of the Regulations

Governing Standards of Conduct, 11

CFR Part 7

Subpart A—General Provisions

Subpart A sets forth general

provisions applicable to all employees

of the Commission regarding rules of

conduct. It also explains the process by

which employees, special Commission

employees, and new employees are to

be notified of these standards of

conduct, sets up an interpretation and

advisory service provided by the Ethics

Officer, and specifies the procedures for

reporting and handling suspected

violations of this Part and the possible

disciplinary and remedial action which

can be taken against violators.

Section 7.1 Purpose and applicability.

The first two sentences of section

7.1(a) are taken from the preamble to the

Commission’s Code o f Ethics. The

remainder summarizes the substance of

Part 7, relating the importance of the

prescribed eithical standards to the

Commission’s administration of federal

election law. Paragraphs 7.1(b) and (c)

make clear that the provisions of Part 7

apply to employees and special

Commission employees, cross-reference

Executive Order 11222 and 5 CFR Part

735, and state that Part 7 is to be

construed as being in accord with any

applicable laws, regulations and labormanagement agreement between the

Commission and a labor organization.

The language of § 7.1(b) has been

modified since publication of the Notice

of Proposed Rulemaking by the

substitution of “employee” for “regular

employee” and “special Commission

employee” for “special Government

employee”, thereby bringing this

paragraph into conformity with the

definitional language at § 7.2.

Section 7.2 Definitions.

The definitions at § 7.2 (b), (c), (g), and

(h) follow from the Commission’s Code

o f Ethics, Subpart A section 2 (a), (b),

and (d), and Subpart B section 2(a). The

definition of “Designated Agency Ethics

Officer” or “Ethics Officer” at § 7.2(d)

follows 5 CFR 734.105(d). The definition

of “employee” at § 7.2(e) is based on

both the Code of Ethics, Subpart A

section 2(c), and on 5 CFR 735.102(b). At

§ 7.2(f), the definition of “former

employee” is derived from the policy

governing post employment activities

adopted by the Commission on February

8,1980, and from 5 CFR 737.3(a)(4). The

definition of “person” at § 7.2(i) is based

in part on the Code o f Ethics, Subpart A

section 2(e), and on 5 CFR 735.102(d).

Since the Notice of Proposed

Rulemaking, the Commission has added

“political committee” to the definition of

“person” in accordance with the

definition of “person” contained in the

Federal Election Campaign Act of 1971,

as amended. See 2 U.S.C. 431(11).

“Special Commission employee” is

defined at § 7.2(j) in accordance with the

Code o f Ethics, Subpart A section 2(f),

and 5 CFR 735.102(e).

Section 7.3 Notification to employees

and special Commission employees.

Paragraph 7.3(a) sets out the intention

of the Commission to inform each

Commission employee and special

employee of the provisions of Part 7.

This paragraph follows 5 CFR 735.104(b)

(2) and (4).

Paragraph 7.3(b) provides that the

Commission will inform each new

Commission employee and special

Commission employee of the provisions

of Part 7 at the time of entrance of duty.

It is based on 5 CFR 735.104(b)(3).

Secton 7.4 Interpretation and advisory

service.

This section identifies the General

Counsel, who serves as the

Commission’s Ethics Officer, as the

proper source of advice and guidance

for both Commissioners and employees

on questions arising under Part 7.

Commissioners have been added to

those covered by this provision since

publication of the Notice of Proposed

Rulemaking. This section is based on 5

CFR 735.105(b) and the Commission’s

Code o f Ethics, Subpart D section 4.

Section 7.5 Reporting suspected

violations.

Paragraph 7.5(a) establishes the

procedure for reporting a suspected

violation of Part 7. Any suspected

violation is to be reported to the Ethics

Officer in writing. This paragraph

follows the Commission’s Code o f

Ethics, Subpart D section 3, except that

the Ethics Officer replaces the Staff

Director as the recipient of reports. This

paragraph is also based in part on 5 CFR

735.106(b).

Paragraph 7.5(b) provides employees

with an opportunity to explain a conflict

of interest, or the appearance thereof, in

writing. This paragraph is based in part

on 5 CFR 735.106(c). The references to

“Subpart D of this Part” and to

“information from other sources”

contained in the Notice of Proposed

Rulemaking have been deleted as a

result of the Commission’s decision not

to prescribe rules pertaining to public

financial disclosure reports until such

time as the Office of Government Ethics

publishes model regulations on

confidential financial disclosure.

“Information available to the

Commission” has been added as

clarifying language.

Section 7.6 Disciplinary and other

rem edial action.

Paragraph 7.6(a) asserts the

Commission’s authority to take

appropriate disciplinary action, in

addition to any penalty prescribed by

law, in the event of violation of this Part

by an employee or special Commission

employee. This paragraph is based in

part on 5 CFR 735.107(a) and on the

Code of Ethics, Subpart D section 1(a).

Paragraph 7.6(b) establishes

procedures to be followed after a

determination by the Ethics Officer that

an employee may have, or appears to

have, a conflict of interest, and

delineates the supervisory personnel

who are to be involved in this process.

The employee’s supervisor and division

head are included as persons with the

most direct knowledge of the employee

and his or her work. Since publication of

the Notice of Proposed Rulemaking, the

Staff Director has been added to the

supervisors to be involved in

disciplinary and other remedial actions

for those employees outside the Office

of General Counsel. This paragraph is

based in part on the Code o f Ethics,

Subpart D section 1(a) and on 5 CFR

735.106 (b) and (c).

Paragraph 7.6(c) outlines possible

forms of remedial action which the

Commission may take in situations of

conflicts of interest. This paragraph is

based on the Code o f Ethics, Subpart D

section 1(b), and 5 CFR 735.107(b).

Subpart B—Conduct and

Responsibilities o f Employees and

Commissioners.

Subpart B establishes standards of

conduct and responsibilities for
34442 Federal Register / Vol. 51,

Commissioners and employees. It offers

general rules regarding Commissioner

and employee conduct and lists

categories of unacceptable activities.

Procedures for submission of outside

employment requests by employees are

also included.

Section 7.7 Prohibited conduct—

general.

Paragraph 7.7 sets forth general

proscriptions on certain categories of

Commissioner and employee actions.

This paragraph follows 5 CFR 735.201(a).

Section 7.8 Gifts, entertainment and

favors.

Paragraph 7.8(a) prohibits a

Commissioner or employee from

soliciting or accepting, directly or

indirectly, anything of monetary value

from particular categories of persons.

This paragraph is based on the Code of

Ethics, Subpart B section 1(a), and on 5

CFR 375.202(a).

Paragraph 7.8(b) sets out exceptions to

the prohibitions established at § 7.8(a).

It generally follows the Code o f Ethics,

Subpart B section 1(b), and 5 CFR

735.202(b).

Paragraph 7.8(c) prohibits, with

certain exceptions, solicitation of

contributions by a Commissioner or

employee of another employee for a gift

to someone in a superior position, the

making of a donation as a gift to an

official superior or the acceptance of

such a gift from someone receiving less

pay than the recipient. This paragraph is

based on the Code o f Ethics, Subpart B

section 1(c) and on 5 CFR 735.202(d).

Since publication of the Notice of

Proposed Rulemaking, “a

Commissioner” has been added to those

who are prohibited by § 7.8(d) from

accepting things of value from a foreign

government. This provision is based on

5 CFR 735.202(e).

Paragraph 7.8(e) concerns acceptance

of reimbursements from other than

Commission funds for travel expenses

incurred on official business by

Commissioners or employees. It cites

Decision B-128527 of the Comptroller

General dated March 7,1967, (46 Comp.

Gen 689), interpreting 18 U.S.C 209

which provides that a Federal employee

may be compensated for his or her

official duties only by the United States

Government. See also 36 Comp. Gen.

268 (1956). According to Decision B128527, an agency without statutory

authority to accept gifts may not accept

reimbursement by a private source for

an officer’s or an employee’s travel,

subsistence, or other expenses because

such reimbursement would constitute

augmentation of appropriations. The

Commission does not have such

No. 188 / Monday, September 29, 1986 / Rules and Regulations

statutory gift acceptance authority. 18

U.S.C. 209 does contain exceptions to

this general rule; the exceptions relevant

to the Commission permit acceptance of

compensation from a state or local

government, and the acceptance of

traveling expenses from certain tax

exempt organizations under the

Government Employees Training Act (5

U.S.C. 4111).

Since publication of the Notice of

Proposed Rulemaking, “a

Commissioner” has been added to those

covered by § 7.8(e). This provision is

based on 5 CFR 735.202(f).

Section 7.9 Outside employment or

activities.

Paragraph 7.9(a) prohibits a

Commissioner from devoting a

substantial portion of his or her time to

any other business, vocation or

employment It is based on 2 U.S.C.

437c(a)(3) and in part on the Code o f

Ethics, Subpart B section 2(a). The Code

incorporates language contained in the

Conference Report on the 1976

amendments to the Federal Election

Campaign Act. Commenting on 2 U.S.C.

437c(a)(3) which states that

"... members of the Commission

shall not engage in any other business,

vocation, or employment”, the

Conference Report found that "... the

requirement is intended to apply to

members who devote a substantial

portion of their time to such business,

vocation, or employment activities. The

conferees, however, do not intend the

requirement to apply to the operation of

a farm, for example, if a substantial

portion of time is not devoted to such

operation.” H.R. Rep. No. 94-1057, 94th

Cong. 2d Sess. 34 (1976) (emphasis

added).

Paragraph 7.9(b) prohibits an

employee from engaging in outside

employment that is not compatible with

his or her Government employment and

not in compliance with any labormanagement agreement between the

Commission and a labor organization.

This paragraph differs from its

counterpart in the Notice of Proposed

Rulemaking in that its language has

been broadened to cover any labormanagement agreement between the

Commission and a labor organization

rather than a specific agreement entered

into with a particular labor organization.

Paragraphs 7.9(b) (1)—(10) provide

examples of the types of outside

employment which are deemed

incompatible with employment by the

Commission. This listing is not all

inclusive. These paragraphs are based in

part on 5 CFR 735.203(a), and on the

Code o f Ethics, Subpart B section 2(b)

(1) and (2), and (c).

Paragraph 7.9(c) is based on 5 CFR

735.203(b). (See also discussion of

Paragraph 7.8(e).)

Paragraph 7.9(d) establishes

parameters regarding the information

which employees may use when

engaging in lawful teaching, lecturing

and writing in either a paid or voluntary

capacity. It is based in part on the Code

o f Ethics, Subpart B Section 2(b)(2)(A),

and on 5 CFR 735.203(c).

Paragraph 7.9(e) is based on the Code

o f Ethics, Subpart B section 2(b)(2)(B)

and on 5 CFR 735.203(e).

Paragraph 7.9(f) contains the

requirement that an employee wishing

to engage in outside employment obtain

prior approval. In the case of employees

of the Office of General Counsel, such

approval must come from the General

Counsel/Ethics Officer, while all other

employees must first obtain the

approval of the Staff Director and then

that of the Ethics Officer. The language

of this paragraph has been altered from

that of the Notice of Proposed

Rulemaking in order to clarify that an

employee of the Office of General

Counsel must obtain approval from the

General Counsel who also serves as the

Ethics Officer, i.e., approval is to be

obtained from one individual acting in

two separate capacities. Paragraph 7.9(f)

also outlines the information to be

supplied when making a written request

for permission to engage in outside

employment, provides that the employee

will receive a response approving or

disapproving his or her written request

pursuant to the provisions of any labormanagement agreement in effect

between the Commission and a labor

organization, and states that a record of

the approval is to be placed in the

employee’s official personnel folder. The

language regarding any labormanagement agreement differs from that

contained in the Notice of Proposed

Rulemaking in its applicability to any

such agreement rather than to a specific

agreement with a particular labor

organization. This paragraph is based

primarily on the Code o f Ethics, Subpart

B section 2(b)(1).

Section 7.10 Financial interests.

This section establishes parameters

for financial transactions and interests

in which Commissioners and employees

may engage, and provides for full

disclosure and for self-disqualification

from proceedings and decision-making

where a financial interest is, appears to

be, or could be affected.

Paragraph 7.10(a)(1) is based on 5 CFR

735.204(a)(2) and the Code o f Ethics,

Subpart B section 3(a).
Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations 34443

Paragraph 7.10(a)(2) is based on 5 CFR

735.204(a)(1), and on the Code o f Ethics,

Subpart B, section 3(b). The language

concerning full disclosure and

disqualification contained in the Notice

of Proposed Rulemaking has been

revised to include Commissioners

among those covered by this provision.

For Commissioners and others required

to file public financial disclosure reports

pursuant to the Ethics in Government

Act, “full disclosure” will be deemed to

have been met by the filing of those

reports. Employees not required to file

public financial disclosure reports must

submit a written statement to the Ethics

Officer disclosing any particular

financial interest which creates, or

appears to create, a conflict of interest.

Such a procedure will be necessary until

such time as the Commission

promulgates rules, following publication

of model regulations by the Office of

Government Ethics, regarding which

employees are to file confidential

financial disclosure reports and what

those reports are to contain.

Paragraph 7.10(a)(3) is based on the

Code o f Ethics, Subpart B section 3(c).

Paragraph 7.10(b) follows 5 CFR

735.204(b).

Section 7.11 Political and organization

activity.

This section, as noted at § 7.11(a),

contains special restrictions on political

activities imposed upon Commissioners

and Commission employees. These

restrictions are in addition to those

imposed by the Hatch Act, 5 U.S.C. 7324,

et seq., and arise out of the

Commission’s special role in the

political process.

Under paragraph 7.11(a)(1),

Commissioners and employees should

neither publicly support nor work for a

candidate, political party, or political

committee within the Commission’s

jurisdiction; moreover, the paragraph

states that contributing to a candidate,

party or committee subject to the

Commission’s jurisdiction is likely to

result in a conflict of interest. This

paragraph is based in part on the Code

of Ethics, Subpart B, section 6(a)(1). The

final sentence in section 6(a)(1) of the

Code has been deleted as redundant.

Paragraph 7.11(a)(2) is based on the

Code o f Ethics, Subpart B section

6(a)(2). ^

Paragraph 7.11(b) follows the Code of

Ethics, Subpart B section 6(b).

Paragraph 7.11(c) generally follows

the Code o f Ethics, Subpart B section

6(C). -V" - im m

Paragraph 7.11(d) is designed to

prevent circumvention of the restrictions

of this section through third parties by

making an employee accountable for the

political activities of another person

acting as the employee’s agent or under

his or her direction. This paragraph is

based on the Code o f Ethics, Subpart B

section 6(d).

Section 7.12 M embership in

associations.

Although Commissioners and

employees are not prohibited from

becoming members of non-governmental

associations or organizations, this

section provides that they must avoid

activities on behalf of such associations

or organizations which are incompatible

with their official Commission positions.

This section is based on the Code o f

Ethics, Subpart D section 2.

Section 7.13 Use o f Government

property.

This section is based on the Code o f

Ethics, Subpart B section 4, and on 5

CFR 735.205.

Section 7.14 Prohibition against

making complaints and investigations

public.

This section warns Commission

employees of the provisions of 2 U.S.C.

437g(a)(12) (A) and (B) which prohibit

making public any notification or

investigation of an enforcement matter

before the Commission without the

written consent of the person

complained against or being

investigated. The statute provides for

monetary penalties to be levied against

any Commissioner, employee or other

person who breaches this requirement of

confidentiality. This section is based on

the Code o f Ethics, Subpart B section 7,

although the final line of the latter

provision has been deleted as unclear.

Section 7.15 Ex parte communications.

The purpose of this section is to avoid

any real or apparent prejudice to the

public interest in enforcement actions

before the Commission. This provision is

intended to govern the internal

procedures of the Commission; thus, it

differs in emphasis, although not in

effect, from the prohibition on ex parte

communications at 11 CFR 111.22, which

is directed at persons outside the

Commission as well as at

Commissioners and employees.

Paragraph § 7.15(a) is based upon the

Code o f Ethics, Subpart B section 8(a),

except that the prohibitions in the Code

directed at persons outside the

Commission have been deleted as

outside the scope of these regulations.

Paragraph 7.15(b) establishes the time

frame during which the prohibition

against ex parte communications

established by this section is in effect. It

follows the Code o f Ethics. Subpart B

section 8(b).

Paragraph 7.15(c) requires that any

written communication prohibited by

§ 7.15(a) be delivered to the Ethics

Officer who is required to place it in the

file of the enforcement matter involved.

This paragraph is based on the Code o f

Ethics, Subpart B section 8(c), except

that the reference to “Staff Director” in

the Code has been changed to "Ethics

Officer”.

Paragraph 7.15(d) outlines the

responsibilities of Commissioners and

employees who are the targets of ex

parte communications. This paragraph is

based on the Code o f Ethics, Subpart B

section 8(d).

The Commission received no

responses to its question in the Notice of

Proposed Rulemaking as to whether it

should propose regulations governing ex

parte communications in areas of its

operations other than enforcement, e.g.,

with regard to advisory opinions and

proposed regulations. Therefore, no such

additional regulations are being

prescribed at this time..

Section 7.16 M iscellaneous statutory

provisions.

This section draws the attention of the

employee to a series of statutory

provisions which relate to his or her

conduct as an employee. These statutory

provisions are listed in the Code o f

Ethics, Subpart B section 10(a) through

10(o), and at 5 CFR 735.210(b) through

210(q), and are also reflected in Subpart

D of this Part.

Subpart C—Conduct and

responsibilities o f special Commission

employees.

This Subpart pertains to the conduct

of special Commission employees as

defined at section 7.2(j). The regulations

include prohibitions on the misuse of

Commission employment or inside

information for unlawful private gain,

and on the unlawful acceptance of gifts

and gratuities from persons having

business with the Commission.

Section 7.17 Use o f Commission

employment.

This section follows the Code o f

Ethics, Subpart C section 1, and 5 CFR

735.302.

Section 7.18 Use o f inside information.

Paragraph 7.18(a) is based on the

Code o f Ethics, Subpart C section 2(a),

and on 5 CFR 735.303(a).

Paragraph 7.18(b) brings special

Commission employees within the

provisions of § 7.9 (d) and (e) as regards

teaching, lecturing or writing. It is based
34444 Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations

on the Code o f Ethics, Subpart C section

2(b), and on 5 CFR 735.303(b).

Section 7.19 Coercion.

This section is based on the Code of

Ethics, Subpart C section 3, and on 5

CFR 735.304.

Section 7.20 Gifts, entertainment, and

favors.

This section prohibits special

Commission employees from receiving

or soliciting anything of value from a

person having business with the

Commission while the special employee

is so employed or in connection with

that employment. The exceptions to this

general prohibition are the same as

those granted Commission employees at

Subpart B, section 7.8(b). This section is

based on the Code o f Ethics, Subpart C

section 4(a), and on 5 CFR 735.305(a).

Section 7.21 M iscellaneous statutory

provisions.

Special Commission employees are

required by this section to acquaint

themselves with each statute related to

their ethical or other conduct as a

special employee, with particular

emphasis upon the statutory provisions

listed at § 7.16. This section is based on

the Code o f Ethics, Subpart C section 5,

and on 5 CFR 735.306.

Subpart D—Post Employment Conflict

o f Interest: Procedures for

Administrative Enforcement

Proceedings.

This Supbart contains procedures for

investigating and administratively

correcting post employment conflicts of

interest. These procedures are generally

the same as those approved by the

Commission on February 8,1980,

pursuant to 18 U.S.C. 207(j) and 5 CFR

737.1 (see Commission Memorandum

#759 dated February 4,1980), which

were found by OGE to conform to the

model procedures prescribed by that

Office at 5 CFR 737.27

Section 7.22 Scope.

This section states that the procedures

set out in this Subpart are to be used in

correcting violations of the post

employment conflict of interest

provisions of 18 U.S.C. 207 (a), (b), and

(c). The present language of the section

clarifies that former special Commission

employees are covered by this

provision. The section has also been

augmented by language which states

that for purposes of Subpart D “former

special Commission employee” is to be

defined in accordance with 18 U.S.C.

207(c)(1). In addition, the final rule

eliminates partners of former employees

as persons whose activities are

restricted by 18 U.S.C. 207. The

provisions of section 207 extend only to

the partners of present employees, not

to those of former employees or former

special employees. See 18 U.S.C. 207(g).

Section 7.23 Initiation o f Investigation.

Paragraph 7.23(a)(1) provides for the

filing of a complaint with the Ethics

Officer of the Commission by anyone

who believes that a former employee

has violated the post employment

conflict of interest provisions of 18

U.S.C. 207 (a), (b), or (c), or of 5 CFR 737.

Paragraph 7.23(a)(2) provides for thé

notification by certified mail of the

former employee named in a complaint

and for the submission by that former

employee of a written legal or factual

response within ten days after his or her

receipt of the complaint.

Paragraph 7.23(b)(1) places

responsibility upon the Ethics Officer for

reviewing the complaint and any

response by the former employee, and

for preparing a report to the Commission

in which he or she recommends either

that the Commission open an

investigation of the allegations in the

complaint or that the Commission

dismiss the complaint on its face.

Paragraph 7.23(b)(2) asserts the

authority of the Commission to order an

investigation of allegations made in a

complaint by an affirmative vote of four

of its members. This paragraph is based

in part on 5 CFR 737.27(a)(2)(h).

Paragraph 7.23(b)(2)(i) requires that

any investigation conducted under this

section be kept confidential pending a

Commission finding of reasonable cause

to believe a violation has occurred. The

exception to this prohibition pertains to

coordination with the Department of

Justice following notification as required

by § 7.23(b)(2)(h). This paragraph is

based on 5 CFR 737.27(a)(2) (i) and (ii).

Paragraph 7.23(b) (2) (ii) requires that

the Commission’s Ethics Officer notify

the Director of the Office of Government

Ethics and the Criminal Division of the

Department of Justice that the

Commission has ordered an

investigation of the allegations made in

the complaint pursuant to § 7.23(b)(2),

and specifies the information that must

be included with the notification. This

paragraph is based on 5 CFR

737.27(a)(2)(i).

According to § 7.23(b)(2)(h) the

Commission is to coordinate its

investigation or administrative action

with the Department of Justice if

criminal proceedings are being

considered or pursued. This paragraph

is based on 5 CFR 737.27(a)(i).

Paragraph 7.23(b)(3) states that there

will be no investigation if the

Commission finds the complaint to be

unfounded. In such an event, the Ethics

Officer is required to notify both the

complainant and the former employee of

the Commission’s finding.

Section 7.24 Conduct o f prelim inary

investigation.

Paragraph 7.24(a) establishes the

responsiblity of the Ethics Officer to

conduct an investigation into the

allegations of a complaint once the

Commission has found, pursuant to

§ 7.23(b)(2), that the complaint appears

to be substantiated.

Paragraph 7.24(b) establishes the

rights of the former employee to be

notified of the Commission’s decision to

initiate an investigation through receipt

of a copy of the report submitted by the

Ethics Officer Pursuant to § 7.23(b)(1),

and to respond to the allegations and to

the report. The Commission must

receive the former employee’s response

within 20 days after his or her receipt of

the Ethics Officer’s report, although an

extension of time may be requested of

the Ethics Officer in writing. The

language of this paragraph differs from

that in the Notice of Proposed

Rulemaking by the deletion of “the

complaint" as one of the documents the

receipt of whch triggers a twenty-day

response time. Section 7.23(a)(2) already

provides a former employee with ten

days to submit an initial response after

his or her receipt of a copy of the

complaint. The twenty days provided at

§ 724(b) for response to the Ethics

Officer’s report is in addition to the

earlier ten-day response period.

Paragraph 7.24(c) provides for the

former employee’s representation by

counsel.

When the investigation is completed,

the Ethics Officer is required by

Paragraph 7.24(d) to prepare a report to

the Commission which is to include any

materials provided by the former

employee. The report must recommend a

finding of reasonable cause to believe or

of no reasonable cause to believe that

the former employee has violated 18

U.S.C. 207 (a), (b), or (c).

Section 7.25 Initiation of

administrative disciplinary proceedings.

Paragraph 7.25(a) provides for review

by the Commission in Executive Session

of the Ethics Officer’s investigative

report prepared pursuant to § 7.24(d).

Paragraph 7.25(b) provides that after

the Commission, by an affirmative vote

of four of its members, determines that

there is reasonable cause to believe a

violation has occurred, the Commission

must initiate an administrative

disciplinary proceeding by notifying the

former employee pursuant to section
Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations 34445

7.26. This paragraph is based on 5 CFR

§ 737.27(a)(2).

Should the Commission find no

reasonable cause to believe a violation

has occurred, Paragraph 7.25(c) requires

that the file in the matter be closed and

no further action be taken. The Director

of the Office of Government Ethics, the

Criminal Division of the Department of

Justice, the complainant, and the former

employee are to be notified of this

determination and each is to be

provided with a statement of reasons.

Section 7.26 Notice to form er

employee.

If the Commission finds reasonable

cause to believe that a violation has

occurred, the Ethics Officer is required

by § 7.26(a) to provide the former

employee with adequate notice of the

Commission’s intention to institute a

disciplinary proceeding and of the

employee’s opportunity to request a

hearing. This paragraph is based in part

on 5 CFR 737.27(a)(3).

Paragraph 7.26(b) outlines the

contents of the adequate notice required

by § 7.26(a). It is based in part on 5 CFR

737.27(a)(3)(ii).

Paragraph 7.26(c)(1) gives a former

employee who is sent a notice pursuant

to § 7.26(a) ten days after receipt of that

notice to notify the Commission by

certified mail of his or her desire for a

hearing. It also sets out the information

which should be included in such a

request for a hearing.

Paragraph 7.26(c)(2) provides that if a

written request for a hearing from the

former employee is not received within

the period of time established by

§ 7.26(c)(1), the right to a hearing will be

waived, and the hearing examiner

appointed pursuant to § 7.27 (a) and (b)

shall consider the written evidence and

make a decision.

Section 7.27 Hearing exam iner

designation and qualifications.

Paragraph 7.27(a) differs from its

counterpart in the Notice of Proposed

Rulemaking by the deletion of the first

sentence in the latter as redundant. It

also modifies the language concerning

the designation of a hearing examiner to

clarify that, following a Commission

determination that there is reasonable

cause to believe a violation has

occurred pursuant to § 7.25, the Ethics

Officer shall designate an individual to

serve as hearing examiner whether or

not the former employee requests a

hearing and whether or not the

Commission decides to agree to such a

request. If there is no hearing, the

examiner will make a determination

based upon the written evidence before

him or her. If there is a hearing, the

examiner also will consider the oral

evidence presented. See also

§ 7.26(c)(2). This paragraph is based in

part on 5 CFR 737.27(a)(4)(i).

Paragraph 7.27(b)(1) establishes

criteria to be applied in selecting a

hearing examiner pursuant to § 7.27(a).

It is based in part on 5 CFR 737.27(a)(4)

(ii) and (iii).

Paragraph 7.27(b)(2) requires that the

hearing examiner be an attorney at the

Assistant General Counsel level or

higher.

Section 7.28 Hearing date.

Paragraph 7.28(a) requires that the

hearing examiner set the hearing at a

reasonable date, time and place. It is

based on 5 CFR 737.27(a)(5)(i).

Paragraph 7.28(b) requires that,

whenever possible, the hearing

examiner consider the former

employee’s needs when setting the date,

time and place of the hearing. This

paragraph is based in part on 5 CFR

737.27(a)(5)(ii).

Section 7.29 Hearing rights o f form er

employees.

This section lists particular rights

which are afforded former employees

during a hearing conducted pursuant to

Subpart D. It is based on 5 CFR

737.27(a)(6).

Section 7.30 Hearing procedures.

This section establishes the rules of

procedure to be followed prior to and

during an administrative disciplinary

hearing held under this Subpart.

Pursuant to Paragraph 7.30(a)(1), the

Ethics Officer must provide the former

employee, no later than 10 days before

the hearing, with a list of witnesses to

be introduced by the Commission. This

paragraph specifies the information to

be included in this list. It also provides

that the former employee must be

informed if no witnesses are to be called

by the Commission.

Paragraph 7.30(a)(2) sets out the

responsibilities of the former employee

regarding the provision of a list of

witnesses he or she intends to introduce.

This list must be provided to the Ethics

Officer no later than 5 days prior to the

hearing. The Ethics Officer is to be

notified if no witnesses are to be called.

According to § 7.30(b) the Commission

is to be represented at the hearing by

the Ethics Officer. This subsection also

reiterates the former employee’s right of

self-representation or to representation

by counsel.

Pursuant to Paragraph 7.30(c), the

burden of proof is on the Commission to

establish substantial evidence of a

violation. This paragraph is based on 5

CFR 737.27(a)(7).

Paragraph 7.30(d)(1) specifies the

documents which the Commission is

required or permitted to introduce and

which will be made part of the hearing

record.

Paragraph 7.30(d)(2) provides the

former employee with the opportunity to

submit a brief or memorandum of law to

be included in the hearing record.

Paragraphs 7.30(d) (3) and (4)

establish the order of the introduction of

witnesses and evidence, with the

Commission making the initial

presentation, and also establish the right

of cross-examination for both the

Commission and the former employee.

Paragraph 7.30(d)(5) establishes the

right to oral argument for both parties,

with the Commission making the first

presentation. The Commission is also

given the right of rebuttal.

Paragraph 7.30(d)(6) requires that

decisions as to the admissibility of

evidence or testimony be made under

the Federal Rules of Evidence.

Section 7.31 Exam iner’s decision.

Paragraphs 7.31 (a) and (b) require

that the examiner make a determination

no later than 15 days after the close of

the hearing, that the determination be

made exclusively on matters of record in

the proceeding, and that the

determination set forth all findings of

fact and conclusions of law relevant to

the matter at issue. These paragraphs

are taken from 5 CFR 737.27(a) (8)(i).

Paragraph 7.31(c) requires that the

examiner provide copies of his or her

determination to the complainant, the

former employee, the Ethics Officer and

the Commission. The complainant has

been added as a recipient since

publication of the Notice of Proposed

Rulemaking for the sake of consistency

with § 7.23(b)(3) which provides that the

complainant is to receive notification if

the Commission decides that a

complaint is unfounded and that no

investigation is to be conducted, and

with § 7.25(c) which provides that the

complainant is to receive notification

and a statement of reasons if the

Commission finds no reasonable cause

to believe a violation has occurred.

Section 7.32 Appeal.

This section establishes the rights of

the former employee and of the Ethics

Officer to appeal a decision of the

hearing examiner to the Commission,

sets out the procedures to be followed

by the appealing party in filing a notice

of appeal, and specifies the powers and

responsibilities of the Commission in

reviewing the examiner’s decision and

in reaching its own determination.
34446 Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations

Paragraph 7.32(a) permits either the

former employee or the Ethics Officer to

appeal the decision of the hearing

examiner to the Commission by filing a

notice of appeal with the Chairman

within 10 days of receipt of the decision.

This paragraph is based on 5 CFR

737.27(a)(8)(ii).

Paragraph 7.32(b) requires that the

notice of appeal be accompanied by a

memorandum setting forth the legal and

factual reasons why the examiner’s

decision should be reversed or modified.

Under Paragraph 7.32(c) the

Commission may affirm, modify or

reverse the examiner’s decision. This

decision is to be based solely on the

hearing record or on those parts of the

record cited by the parties in order to

limit the issues on appeal. This

paragraph is based in part on 5 CFR

737.27(a)(8)(ii).

Pursuant to $ 7.32(d), if the

Commission decides to modify or

reverse the examiner’s decision, it must

specify those findings of fact or

conclusions of law which differ from

those of the examiner. This paragraph is

based in part on 5 CFR 737.27(a)(8)(iii).

Section 7.33 Administrative sanctions.

This section sets out the authority of

the Commission to take appropriate

disciplinary action in the case of any

individual found to have violated 18

U.S.C. 207 (a), (b) or (c), whether after a

final administrative hearing or, if no

hearing is held, after adequate notice to

the former employee involved. Examples

of such appropriate actions are given,

including general prohibitions against

appearing before the Commission for a

period not to exceed five years, letters

of reprimand, letters of admonishment,

or prohibitions against making

appearances in particular matters or on

behalf of a particular party. This section

is based on 5 CFR 737.27(a)(9).

List of Subjects in 11 CFR Part 7

Administrative practice and

procedure, Conflicts of interests,

Government employees, Political

activities (Government employees).

11 CFR is amended by adding new

Part 7 as follows:

PART 7—STANDARDS OF CONDUCT

Subpart A—General Provisions

Sec

7.1 Purpose and applicability.

7.2 Definitions.

7.3 Notification to employees and special 

Commission employees.

7.4 Interpretation and advisory service.

7.5 Reporting suspected violations.

7.6 Disciplinary and other remedial action.

Subpart B—Conduct and Responsibilities

of Employees or Commissioners

7.7 Prohibited conduct—General.

7.8 Gifts, entertainment, and favors.

7.9 Outside employment or activities.

7.10 Financial interests.

7.11 Political and organization activity.

7.12 Membership in associations.

7.13 Use of Government property.

7.14 Prohibition against making complaints 

and investigations public.

7.15 Ex parte communications.

7.16 Miscellaneous statutory provisions.

Subpart C—Conduct and Responsibilities

of Special Commission Employees

7.17 Use of Commission employment.

7.18 Use of inside information.

7.19 Coercion.

7.20 Gifts, entertainment, and favors.

7.21 Miscellaneous statutory provisions.

Subpart D—Post Employment Conflict of

Interest: Procedures for Administrative

Enforcement Proceedings

7.22 Scope.

7.23 Initiation of investigation.

7.24 Conduct of preliminary investigation.

7.25 Initiation of administrative disciplinary 

proceeding.

7.26 Notice to former employee.

7.27 Hearing examiner designation and 

qualifications.

7.28 Hearing date.

7.29 Hearing rights of former employee.

7.30 Hearing procedures.

7.31 Examiner’s decision.

7.32 Appeal.

7.33 Administrative sanctions.

Authority: 5 U.S.C. 7321 et seq.; 18 U.S.C.

207.

Subpart A—General Provisions

§ 7.1 Purpose and applicability.

(a) The Federal Election Commission

is committed to honest, independent and

impartial monitoring and enforcement of

federal election law. To ensure public

trust in the fairness and integrity of the

federal elections process, all employees

must observe the highest standards of

conduct. This part prescribes standards

of ethical conduct for Commissioners,

employees and special Government

employees of the Federal Election

Commission relating to conflicts of

interest arising out of outside

employment, private business and

professional activities, political

activities, and financial interests. The

avoidance of misconduct and conflicts

of interest on the part of Commission

employees through informed judgment is

indispensable to the maintenance of

these prescribed ethical standards.

Attainment of these goals necessitates

strict and absolute fairness and

impartiality in the administration of the

law.

(b) This part applies to all persons

included within the terms “employee”

and “special Commission employees” of

the Commission as defined in 11 CFR

7.2, except to the extent otherwise

indicated herein, and is consistent with

Executive Order 11222 and Part 735 of

Title 5, Code of Federal Regulations,

relating to employee responsibilities and

conduct.

(c) These Standards of Conduct shall

be construed in accordance with any

applicable laws, regulations and

agreements between the Federal

Election Commission and a labor

organization.

§ 7.2 Definitions.

As used in this part:

(a) “Commission” means the Federal

Election Commission, 999 E Street, NW.

Washington, DC 20463.

(b) “Commissioner” means a voting

member of the Federal Election

Commission, in accordance with 2

U.S.C. 437c.

(c) “Conflict of interest” means a

situation in which an employee’s private

interest is inconsistent with the efficient

and impartial conduct of his or her

official duties and responsibilities.

(d) “Designated Agency Ethics

Officer” or “Ethics Officer” means the

employee designated by the Commission

to administer the provisions of the

Ethics in Government Act of 1978 (Pub.

L. 95-521), as amended, and includes a

designee of the Ethics Officer.

(e) “Employee” means an employee of

the Federal Election Commission, but

does not include a special Commission

employee.

(f) “Former employee” means one who

was, and is no longer, an employee of

the Commission.

(g) "Official responsibility” means the

direct administrative or operating

authority, whether intermediate or final,

to approve, disapprove, or otherwise

direct Commission action. Official

responsibility may be exercised alone or

with others and either personally or

through subordinates.

(h) “Outside employment or other

outside activity” means any work,

service or other activity performed by

an employee, but not a Commissioner,

other than in the performance of the

employee’s official duties. It includes

such activities as writing and editing,

publishing, teaching, lecturing,

consulting, self-employment, and other

services or work performed, with or

without compensation.

(i) "Person” means an individual,

corporation, company, association, firm,

partnership, society, joint stock

company, political committee, or other

group, organization, or institution.

(j) “Special Commission employee”

means an individual who is retained,
Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations 34447

designated, appointed or employed by

the Federal Election Commission to

perform, with or without compensation,

temporary duties either on a full-time or

intermittent basis, for not to exceed 130

days during any period of 365

consecutive days, as defined at 18

U.S.C. 202.

§ 7.3 Notification to employees and

special Commission employees.

(a) The provisions of this part shall be

brought to the attention of, and made

available to, each employee and special

Commission employee by furnishing a

copy at the time of final publication. The

provisions of this Part shall further be

brought to the attention of such

employees at least annually thereafter.

(b) The provisions of this part shall be

brought to the attention of each new

employee and new special Commission

employee by furnishing a copy at the

time of entrance of duty, and by such

other methods of information and

education as the Ethics Officer may

prescribe.

§ 7.4 Interpretation and advisory service.

A Commissioner or employee seeking

advice and guidance on questions of

conflict of interest and on other matters

covered by this part should consult with

the Commission’s General Counsel, who

serves as Ethics Officer. The Ethics

Officer should be consulted prior to the

undertaking of any action which might

violate this part governing the conduct

of Commissioners or employees.

§ 7.5 Reporting suspected violations.

(a) Personnel who have information

which causes them to believe that there

has been a violation of a statute or

policy set forth in this part should

promptly report such incident to the

Ethics Officer. If a report is made orally,

the Ethics Officer shall require a written

report from the complainant before

proceeding further.

(b) When information available to the

Commission indicates a conflict

between the interests of an employee or

special Commission employee and the

performance of his or her Commission

duties, the employee or special

Commission employee shall be provided

an opportunity to explain the conflict or

appearance of conflict in writing.

§ 7.6 Disciplinary and other remedial

action.

(a) A violation of this part by an

employee or special Commission

employee may be cause for appropriate

disciplinary action which may be in

addition to any penalty prescribed by

law.

(b) When the Ethics Officer

determines that an employee may have

or appears to have a conflict of interest,

the Ethics Officer, the employee’s

supervisor, the employee’s division

head, and the Staff Director or General

Counsel may question the employee in

the matter and gather other information.

The Ethics Officer, the employee’s

supervisor, the employee’s division

head, and the Staff Director or General

Counsel shall discuss with the employee

possible ways of eliminating the conflict

or appearance of conflict. If the Ethics

Officer, after consultation with the

employee’s supervisor, the employee’s

division head, and the Staff Director of

General Counsel, concludes that

remedial action should be taken, he or

she shall refer a statement to the

Commission containing his or her

recommendation for such action. The

Commission, after consideration of the

employee’s explanation and the results

of any investigation, may direct

appropriate remedial action as it deems

necessary.

(c) Remedial action pursuant to

paragraph (b) of this section may

include, but is not limited to:

(1) Changes in assigned duties;

(2) Divestment by the employee of his

or her conflicting interest;

(3) Disqualification for a particular

action; or

(4) Disciplinary action.

Subpart B—Conduct and

Responsibilities of Employees or

Commissioners

§ 7.7 Prohibited conduct—General.

A Commissioner or employee shall

avoid any action whether or not

specifically prohibited by this subpart

which might result in, or create the

appearance of:

(a) Using public office for unlawful

private gain;

(b) Giving favorable or unfavorable

treatment to any person or organization

due to any partisan, political, or other

consideration;

(c) Impeding Government efficiency or

economy;

(d) Losing independence or

impartiality;

(e) Making a Government decision

outside official channels; or

(f) Affecting adversely the confidence

of the public in the integrity of the

Government.

§ 7.8 Gifts, entertainment and favors.

(a) A Commissioner or employee of

the Federal Election Commission shall

not solicit or accept, directly or

indirectly, any gift gratuity, favor,

entertainment, loan, or any other thing

of monetary value, from a person who:

(1) Has, or is seeking to obtain,

contractual or other business or

financial relations with the Commission;

(2) Conducts operations or activities

that are regulated or examined by the

Commission; or

(3) Has interests that may be

substantially affected by the

performance or nonperformance of the

Commissioner or employee’s official

duty.

(b) Paragraph (a) of this section shall

not apply:

(1) Where obvious family or personal

relationships govern when the

circumstances make it clear that it is

those relationships rather than the

business of the persons concerned

which are the motivating factors;

(2) To the acceptance of food,

refreshments, and accompanying

entertainment of nominal value in the

ordinary course of a social occasion or a

luncheon or dinner meeting or other

function where a Commissioner or an

employee is properly in attendance;

(3) To the acceptance of unsolicited

advertising or promotional material or

other items of nominal intrinsic value

such as pens, pencils, note pads,

calendars; and

(4) To the acceptance of loans from

banks or other financial institutions on

customary terms to finance proper and

usual activities, such as home mortgage

loans.

(c) A Commissioner or an employee

shall not solicit a contribution from

another employee for a gift to an official

superior, make a donation as a gift to an

official superior, or accept a gift from an

employee receiving less pay than

himself or herself. However, this

paragraph does not prohibit a voluntary

gift of nominal value or donation in a

nominal amount made on a special

occasion such as birthday, holiday,

marriage, illness, or retirement.

(d) A Commissioner or employee shall

not accept a gift, present, decoration, or

other thing from a foreign government

unless authorized by Congress as

provided by the Constitution and in

Section 7342 of Title 5, United States

Code.

(e) Neither this section nor 11 CFR 7.7

precludes a Commissioner or employee

from receipt of a bona fide

reimbursement, unless prohibited by

law, for expenses of travel and such

other necessary subsistence as is

compatible with this part for which no

Government payment or reimbursement

is made. However, this section does not

allow an employee or Commissioner to

be reimbursed, or payment to be made

on his or her behalf, for excessive

personal living expenses, gifts,
34448 Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations

entertainment, or other personal

benefits, nor does it allow an employee

to be reimbursed by a person for travel

on official business under agency orders

when reimbursement is proscribed by

Decision B-128527 of the Comptroller

General dated March 7,1967 (46 Comp.

Gen. 689).

§ 7.9 Outside employment or activities.

(a) A member of the Commission shall

not devote a substantial portion of his or

her time to any other business, vocation,

or employment. Any individual who is

engaging substantially in any other

business, vocation, or employment at

the time such individual begins to serve

as a member of the Commission shall

appropriately limit such activity no later

than 90 days after beginning to serve as

such a member.

(b) An employee shall not engage in

outside employment that is not

compatible with the full discharge of

this or her Government employment and

not in compliance with any labormanagement agreement between the

Federal Election Commission and a

labor organization. Incompatible outside

employment or other activities include

but are not limited to:

(1) Outside employment or other

activities which would involve the

violation of a Federal or State statute,

local ordinance, Executive Order, or

regulation to which the employee is

subject;

(2) Outside employment or other

activities which would give rise to a real

or apparent conflict of interest situation

even though no violation of a specific

statutory provision was involved;

(3) Acceptance of a fee, compensation,

gift, payment of expense, or any other

thing of monetary value in

circumstances where acceptance may

result in, or create the appearance of, a

conflict of interest;

(4) Outside employment or other

activities that might bring discredit upon

the Government or Commission;

(5) Outside employment or other

activities that establish relationships or

property interests that may result in a

conflict between the employee’s private

interests and official duties;

(6) Outside employment or other

activities which would involve any

contractor or subcontractor connected

with any work performed for the

Commission or would involve any

person or organization in a position to

gain advantage in its dealings with the

Government through the employee’s

exercise of his or her official duties;

(7) Outside employment of other

activities that may be construed by the

public to be the official acts of the

Federal Election Commission. In any

permissible outside employment, care

shall be taken to ensure that names and

titles of employees are not used to give

the impression that the activity is

officially endorsed or approved by the

Commission or is part of the

Commission’s activities;

(8) Outside employment or other

activities which would involve use by

an employee of his or her official duty

time; use of official facilities, including

office space, machines, or supplies, at

any time; or use of the services of other

employees during their official duty

hours;

(9) Outside employment or other

activities which tend to impair the

employee’s mental or physical

capacities to perform Commission duties

and responsibilities in an acceptable

manner; or

(10) Use of information obtained as a

result of Government employment which

is not freely available to the general

public or would not be made available,

upon request. However, written

authorization for the use of any such

information may be given when the

Commission determines that such use

would be in the public interest.

(c) An employee shall not receive any

salary or anything of monetary value

from a private source as compensation

for his or her services to the

Government in violation of 18 U.S.C.

209.

(d) Employees are encouraged to

engage in teaching, lecturing, and

writing that is not prohibited by law,

Executive Order 11222, or this part.

However, an employee shall not, either

for or without compensation, engage in

teaching or writing that is dependent on

information obtained as a result of his or

her Commission employment, except

when that information has been made

available to the general public or will be

made available on request, or when the

Commission gives written authorization

for the use of nonpublic information on

the basis that the use is in the public

interest.

(e) This section does not preclude an

individual from participation in the

affairs of or acceptance of an award for

meritorious public contribution or

achievement given by a charitable,

religious, professional, social, fraternal,

nonprofit educational, recreational,

public service or civic organization.

(f) An employee of the Office of

General Counsel who intends to engage

in outside employment shall obtain the

approval of the General Counsel/Ethics

Officer. All other employees who intend

to engage in outside employment shall

obtain the approval of the Staff Director

prior to review and approval by the

Ethics Officer. The request shall include

the name of the person, group, or

organization for whom the work is to be

performed, the nature of the services to

be rendered, the proposed hours of

work, or approximate dates of

employment, and the employee’s

certification as to whether the outside

employment (including teaching, writing

or lecturing) will depend in any way on

information obtained as a result of the

employee’s official Government

position. The employee will receive

notice of approval or disapproval of any

written request in accordance with any

labor-management agreement between

the Commission and a labor

organization. A record of the approval

shall be placed in each employee’s

official personnel folder.

§ 7.10 Financial interests.

(a)(1) A Commissioner or employee

shall not engage in, directly or

indirectly, a financial transaction as a

result of, or primarily relying on.

information obtained through his or her

Commission employment.

(2) A Commissioner or employee shall

not have a direct or indirect financial

interest that conflicts substantially, or

appears to conflict substantially, with

his or her Commission duties and

responsibilities, except in cases where

the Commissioner or employee makes

full disclosure, and the Commissioner or

employee disqualifies himself or herself

from participating in any decisions,

approval, disapproval, recommendation,

the rendering of advice, investigation, or

otherwise in any proceeding of the

Commission in which the financial

interest is or appears to be affected. The

filing of public financial disclosure

reports will constitute full disclosure for

all individuals who are required to file

such reports pursuant to the Ethics in

Government Act. Until such time as the

extent, shape and form of confidential

financial disclosure reports required of

employees by the Ethics in Government

Act has been determined, full disclosure

by an employee will require that that

employee submit a written statement to

the Ethics Officer disclosing the

particular financial interest which

conflicts substantially, or appears to

conflict substantially, with the

employee’s duties and responsibilities.

(3) A Commissioner or employee

should disqualify himself or herself from

a proceeding in which his or her

impartiality might reasonably be

questioned where the Commissioner or

employee knows that he or she, or his or

her spouse, has an interest in the subject

matter in controversy or is a party to the

proceeding, or any other interest that
Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations 34449

could be substantially affected by the

outcome of the proceeding.

(b) This section does not preclude a

Commissioner or employee from having

a financial interest or engaging in

financial transactions to the same extent

as a private citizen not employed by the

Government provided that the activity is

not prohibited by law, Executive Order

11222, or Commission regulations.

§ 7.11 Political and organization activity.

(a) Due to the Federal Election

Commission’s role in the political

process, the following restrictions on

political activities are required in

addition to those imposed by the Hatch

Act (5 U.S.C. 7324 et seq.):

(1) No Commissioner or employee

should publicly support a candidate,

political party, or political committee

subject to the jurisdiction of the

Commission. No Commissioner or

employee should work for a candidate,

political party or political committee

subject to the jurisdiction of the

Commission. Commissioners and

employees should be aware that

contributing to candidates, political

parties, or political committees subject

to the jurisdiction of the Commission is

likely to result in a conflict of interest.

(2) No Commissioner or employee

shall display partisan buttons, badges or

other insignia on Commission premises.

(b) Special Government employees

are subject to the restrictions contained

in this section for the entire 24 hours of

any day on which the employee is on

active duty status.

(c) Employees on leave, leave without

pay, or on furlough or terminal leave,

even though the employees’ resignations

have been accepted, are subject to the

restrictions of this section. A separated

employee who has received a lump-sum

payment for annual leave, however, is

not subject to the restrictions during the

period covered by the lump-sum

payment or thereafter, provided he or

she does not return to Federal

employment during that period. An

employee is not permitted to take a

leave of absence to work with a political

candidate, committee, or organization or

become a candidate for office despite

any understanding that he or she will

resign his or her position if nominated or

elected.

(d) An employee is accountable for

political activity by another person

acting as his or her agent or under the

employee’s direction or control if the

employee is thus accomplishing what he

or she may not lawfully do directly and

openly.

§7.12 Membership in associations.

Commissioners or employees who are

members of nongovernmental

associations or organizations shall

avoid activities on behalf of those

associations or organizations that are

incompatible with their official

governmental positions.

§ 7.13 Use of Government property.

A Commission or employee shall not

directly or indirectly use, or allow the

use of, Government property of any

kind, including property leased to the

Government, for other than officially

approved activities. Commissioners and

employees have a positive duty to

protect and conserve Government

property including equipment, supplies,

and other property entrusted or issued

to him or her.

§ 7.14 Prohibition against making

complaints and investigations public.

(a) Commission employees are

warned that they are subject to criminal

penalties if they discuss or otherwise

make public any matters pertaining to a

complaint or investigation under 2

U.S.C. 437g, without the written

permission of the person complained

against or being investigated. Such

communications are prohibited by 2

U.S.C. 437g(a)(12)(A).

(b) 2 U.S.C. 437g(a)(12)(B) provides as

follows: ‘‘Any member or employee of

the Commission or any other person,

who violates the provisions of

subparagraph (A) shall be fined not

more than $2,000. Any such member,

employee, or other person who

knowingly and willfully violates this

subsection shall be fined not more than

$5,000.”

§ 7.15 Ex parte communications.

In order to avoid the possibility of

prejudice, real or apparent, to the public

interest in enforcement actions pending

before the Commission pursuant to 2

U.S.C. 437g{A) (1) or (2):

(a) Except to the extent required for

the disposition of ex parte matters as

required by law (as, for example, during

the normal course of an investigation or

a conciliation effort), no Commissioner

or employee involved in the decisional

process shall make or entertain any ex

parte communications.

(b) The prohibition of this section

shall apply from the time a complaint is

filed with the Commission pursuant to 2

U.S.C. 437(a)(1) or from the time that the

Commission determines on the basis of

information ascertained in the normal

course of its supervisory responsibilities

that it has reason to believe that a

violation has occurred or may occur

pursuant to 2 U.S.C. 437g(a)(2), and shall

remain in force until the Commission

has concluded all action with respect to

the enforcement matter in question.

(c) Any written communication

prohibited by subsection (a) of this

section shall be delivered to the Ethics

Officer of the Commission who shall

place the communication in the file of

the case.

(d) A Commissioner or employee,

other than the employee assigned to the

case, involved in handling enforcement

actions who receives an oral offer or

any communication concerning any

enforcement action pending before the

Commission as described in subsection

(a) of this section shall decline to listen

to such communication. If unsuccessful

in preventing the communication, the

Commissioner or employee shall advise

the person making the communication

that he or she will not consider the

communication and shall prepare a

statement setting forth the substance

and circumstances of the

communication within 48 hours of

receipt of the communication and shall

deliver the statement to the Ethics

Officer for placing in the file in the

manner set forth in subsection (c) of this

section.

§ 7.16 Miscellaneous statutory provisions.

Each employee shall acquaint himself

or herself with each statute that relates

to his or her ethical and other conduct

as an employee of the Commission and

of the Government. In particular, the

attention of employees is directed to the

following statutory provisions:

(a) Chapter 11 of Title 18, United

States Code, relating to bribery, graft,

and conflicts of interest, as appropriate

to the employees concerned.

(b) The prohibition of 18 U.S.C. 1913

against lobbying with appropriated

funds.

(c) The prohibitions of 5 U.S.C. 7311

and 18 U.S.C. 1918 against disloyalty

and striking.

(d) The prohibition of 50 U.S.C. 784

against the employment of a member of

a Communist organization.

(e) The prohibitions against (1) the

disclosure of classified information

under 18 U.S.C. 798 and 50 U.S.C. 782

and (2) the disclosure of confidential

business information under 18 U.S.C.

1905.

(f) The provisions of 5 U.S.C. 7352

relating to the habitual use of

intoxicants to excess.

(g) The prohibition of 31 U.S.C. 638a(c)

against the misuse of a Government

vehicle.

(h) The prohibition of 18 U.S.C. 1719

against the misuse of the franking

privilege.
34450 Federal Register / Vol, 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations

(i) The prohibition of 18 U.S.C. 1917

against the use of deceit in an

examination or personnel action in

connection with Government

employment.

(j) The prohibition of 18 U.S.C. 1001

against fraud or false statements in a

Government matter.

(k) The prohibition of 18 U.S.C. 2071

against mutilating or destroying a public

record.

(l) The prohibition of 18 U.S.C. 508

against counterfeiting and forging

transportion requests.

(m) The prohibitions against (1)

embezzlement of Government money or

property under 18 U.S.C. 641; (2) failing

to account for public money under 18

U.S.C. 643; and (3) embezzlement of the

money or property of another person in

the possession of an employee by

reason of his or her employment under

18 U.S.C 654.

(n) The prohibition of 18 U.S.C. 285

against unauthorized use of documents

relating to claims from or by the

Government.

(o) The prohibitions against political

activities in Subchapter III of chapter 73

of Title 5, United States Code, and 18

U.S.C 602, 603, 607, and 608.

(p) The prohibition of 18 U.S.C. 219

against an employee acting as the agent

of a foreign principal registered under

the Foreign Agents Registration Act.

(q) The prohibition of 18 U.S.C. 207

against certain activities of departing

and former employees.

(r) The prohibition of 18 U.S.C. 208

against certain acts affecting a personal

financial interest.

Subpart C—Conduct and

Responsibilities of Special

Commission Employees

§ 7.17 Use of Commission employment.

A special Commission employee shall

not use his or her Commission

employment for a purpose that is, or

gives the appearance of being,

motivated by a desire for unlawful

private gain for himself or herself, or for

another person, particularly one with

whom the employee has family,

business or financial ties.

§7.18 Use of inside information.

(a) A special Commission employee

shall not use inside information

obtained as a result of his or her

Commission employment for unlawful

private gain for himself or herself, or for

another person, either by direct action

on the employee’s part or by counsel,

recommendation, or suggestion to

another person, particularly one with

whom the employee has family,

business, or financial ties. For the

purpose of this section, "inside

information” means information

obtained under Commission authority

which has not become part of the body

of public information.

(b) A special Commission employee

may teach, lecture, or write in a manner

consistent with 11 CFR 7.9(d) and (e).

§7.19 Coercion.

A special Commission employee shall

not use his or her Commission

employment to coerce, or give the

appearance of coercing, a person to

provide unlawful financial benefit to

himself or herself or to another person,

particularly one with whom the

employee has family, business, or

financial ties.

§ 7.20 Gifts, entertainment, and favors.

Except as provided at 11 CFR 7.8(b), a

special Commission employee, while so

employed or in connection with his or

her employment, shall not receive or

solicit from a person having business

with the Commission anything of value

such as a gift, gratuity, loan,

entertainment, or favor for himself or

herself, or for another person,

particularly one with whom the

employee has family, business, or

financial ties.

§ 7.21 Miscellaneous statutory provisions.

Each special Commission employee

shall acquaint himself or herself with

each statute that relates to his or her

ethical or other conduct as a special

Commission employee. Particular

attention should be directed to the

statutory provisions listed in 11 CFR

7.16.

Subpart D—Post Employment Conflict

of Interest: Procedures for

Administrative Enforcement

Proceedings

§ 7.22 Scope.

The following are procedures to be

followed by the Federal Election

Commission in investigating and

administratively correcting violations of

the post employment conflict of interest

provisions contained in 18 U.S.C. 207 (a),

(b), and (c), which restrict activities of

former employees, including former

special Commission employees, which

might give the appearance of undue

benefit based on prior Commission

employment and affiliation. Where

appropriate for purposes of this subpart,

‘former special Commission employee’

shall be defined in accordance with 18

U.S.C. 207(c)(1).

§ 7.23 initiation of investigation.

(a) Filing o f complaint. (1) Any person

who believes a former employee has

violated the post employment conflict of

interest provisions of 18 U.S.C. 207 (a),

(b), or (c), or 5 CFR Part 737 may file a

signed complaint with the Ethics Officer.

(2) The Ethics Officer, within five days

after receipt of the complaint, shall send

a copy of the complaint by certified mail

to the former employee named in the

complaint. The former employee may,

within ten days after receipt of the

complaint, submit any written legal or

factual materials he or she believes

demonstrate that the complaint should

be dismissed on its face.

(b) Review o f complaint. (1) The

Ethics Officer will review the complaint

and any materials submitted by the

former employee, and will prepare a

report to the Commission recommending

whether the complaint should be

investigated or should be dismissed on

its face.

(2) If the Commission, by an

affirmative vote of four members, finds

that the complaint appears to be

substantiated, it may order an

investigation of the allegations made in

the complaint.

(i) Except as may be required to

coordinate with the Department of

Justice under 11 CFR 7.23(b)(2)(iii) any

investigation conducted under this

section shall be kept confidential until

such time as the Commission has

determined whether there is reasonable

cause to believe a violation has

occurred.

(ii) The Ethics Officer shall notify the

Director of the Office of Government

Ethics and the Criminal Division of the

Department of Justice of the

Commission’s finding that the complaint

has merit. The notification shall contain

a copy of the complaint, any materials

submitted by the former employee, the

Ethics Officer’s report, and the

certification of the Commission’s action.

(iii) The Commission will coordinate

any investigation or administrative

action with the Department of Justice to

avoid prejudicing criminal proceedings,

unless the Department of Justice notifies

the Commission that it does not intend

to initiate criminal proceedings.

(3) If the Commission finds the

complaint to be unfounded, no

investigation will be conducted and both

the complainant and the former

employee will be notified by the Ethics

Officer of the Commission's finding.

§ 7.24 Conduct of preliminary

investigation.

(a) Ethics O fficer’s responsibility.

Upon a finding under 11 CFR 7.23(b)(2)

that a complaint appears to be

substantiated, the Ethics Officer shall
Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations 34451

conduct an investigation into the

allegations of the complaint.

(b) Opportunity to respond. The

former employee will be sent a copy of

the Ethics Officer’s report and will be

given an opportunity to respond in

writing and under oath to the allegations

made in the complaint and the findings

made in the report. The former

empoloyee may provide any written

legal or factual materials he or she

believes demonstrate that no violation

has occurred. Such response must be

received by the Commission within 20

days after the former employee’s receipt

of the Ethics Officer’s report, unless an

extension is authorized in writing by the

Ethics Officer.

(c) Representation by counsel. The

former employee may be represented by

counsel during the investigation. Such

counsel shall notify the Ethics Officer in

writing that he or she is representing the

former employee. Thereafter, all

communications between the

Commission staff and the former

employee relating to the investigation

shall be made to the former employee’s

counsel.

(d) Report to the Commission. Upon

completion of the investigation, the

Ethics Officer shall prepare a report to

the Commission, including any materials

provided by the former employee. The

report shall recommend whether there is

reasonable cause to believe the

respondent has violated 18 U.S.C. 207(a),

(b). or (c).

§ 7.25 Initiation of administrative

disciplinary proceeding.

(a) Commission review o f report. The

Commission shall review the Ethics

Officer’s investigative report in

Executive Session.

(b) Reasonable cause to believe

finding. If the Commission, by an

affirmative vote of four members,

determines there is reasonable cause to

believe a violation has occurred, it shall

initiate an administrative disciplinary

proceeding by providing the former

employee with the notice defined in 11

CFR 7.26.

(c) No reasonable cause to believe

finding. If the Commission determines

that there is no reasonable cause to

believe a violation has occurred, it will

close its file on the matter and take no

further action. The Commission shall

notify the Director of the Office of

Government Ethics, the Criminal

Division of the Department of Justice,

the complainant, and the former

employee of its determination. Included

in this notification will be a statement of

reasons for the Commission’s

determination.

§ 7.26 Notice to former employee.

(a) Notice requirement. After a

reasonable cause to believe finding the

Ethics Officer shall provide the former

Commission employee with adequate

notice of an intention to institute a

disciplinary proceeding and an

opportunity to request a hearing.

(b) Contents. The notice required

under this section shall contain:

(1) A statement of the allegations (and

the basis thereof);

(2) Notification of the right to request

a hearing;

(3) An explanation of the method by

which a hearing may be requested as set

forth at 11 CFR 7.26(c); and

(4) A copy of the post-employment

regulations.

(c) Request for hearing. (1) A former

employee who has received a notice

under this section must notify the

Commission with ten days after receipt

of such notice by certified mail of his or

her desire for a hearing. The request for

a hearing should include the following

information:

(1) The former employee’s daytime

telephone number;

(ii) The name, address, and telephone

number of the former employee’s

counsel, if he or she intends to be

represented by counsel; and

(iii) At least three dates and times at

which the former employee will be

available for a hearing.

(2) If a written request from the former

employee is not received by the Ethics

Officer within the stated time period, the

right to a hearing shall be waived and

the examiner (See 11 CFR 7.27) shall

consider the evidence and make a

decision.

§ 7.27 Hearing examiner designation and

qualifications.

(a) Designation. If the Commission

decides by an affirmative vote of four of

its members to hold a hearing, the Ethics

Officer shall designate an individual to

serve as examiner at the administrative

disciplinary hearing. In the absence of a

hearing, the Ethics Officer shall

designate an examiner to consider the

written evidence and make a decision.

(See 11 CFR 7.26(b)(2)). The individual

designated as examiner shall have the

qualifications set forth in subsection (b)

of this section.

(b) Qualifications. (1) An examiner

shall be impartial. No individual who

has participated in any manner in the

decision to initiate the proceeding may

serve as an examiner in those

proceedings. Therefore, the following

persons may not be designated as an

examiner:

(1) A Commissioner,

(ii) The Ethics Officer, or

(iii) Any Commission employee who

has participated in the preliminary

investigation of the complaint.

(2) The examiner shall be an attorney

at the Assistant General Counsel level

or higher.

§ 7.28 Hearing date.

(a) Setting o f date by examiner. The

examiner shall set the hearing at a

reasonable time, date, and place.

(b) Considerations. Whenever

practicable, the examiner shall choose a

time and date from the list submitted by

the former employee in the request for a

hearing. In setting a hearing date, the

examiner shall give due regard to the

former employee’s need for:

(1) Adequate time to prepare a

defense properly, and

(2) An expeditious resolution of

allegations that may be damaging to his

or her reputation.

§ 7.29 Hearing rights of former employer.

A hearing conducted under these

procedures shall afford the former

employee the following rights:

(a) To represent oneself or to be

represented by counsel,

(b) To introduce and examine

witnesses and to submit physical

evidence,

(c) To confront and cross-examine

adverse witnesses,

(d) To present oral argument, and

(ej To request a transcript of the

recording of proceedings. The requester

will be charged according to the fee

schedule set out at 11 CFR 5.6.

§ 7.30 Hearing procedures.

(a) Witness lists. (1) No later than 10

days prior to the hearing date, the Ethics

Officer will provide the former employee

with a list of the witnesses the

Commission intends to introduce. The

list shall include the name and position

of each witness and the aspect of the

allegation upon which the witness is

expected to testify. If no witnesses are

to be called, the former employee shall

be so notified.

(2) No later than 5 days prior to the

hearing date, the former employee shall

provide the Ethics Officer with a list of

witnesses he or she intends to introduce.

The list shall include the name and

position of each witness and the aspect
34452 Federal Register / Vol. 51, No. 188 / Monday, September 29, 1986 / Rules and Regulations

of the allegation upon which the witness

is expected to testify. If no witnesses are

to be called, the Ethics Officer shall be

so notified.

(3) Copies of the witness lists shall be

given to the examiner by the Ethics

Officer.

(b) Representation. (1) The

Commission shall be represented at the

hearing by the Ethics Officer or his or

her designee,

(2) The former employee may

represent himself or herself or may be

represented by counsel.

(c) Burden o f proof. The burden of

proof shall be on the Commission which

must establish substantial evidence of a

violation.

(d) Conduct o f hearing. (1) The

following items will be introduced by

the Commission and will be made part

of the hearing record:

(1) The complaint;

(ii) The notification sent to the former

employee under 11 CFR 7.27;

(iii) The former employee’s response

to the notification; and

(iv) If the Commission so chooses, a

brief or memorandum of law.

(2) The former employee will then be

given an opportunity to submit a brief or

memorandum of law to be included in

the hearing record.

(3) The Commission shall introduce its

witnesses and evidence first. At the

close of the Commission’s examination

of each witness, the former employee

will be given an opportunity to crossexamine the witness.

(4) The former employee will present

his or her witnesses and evidence at the

close of the Commission’s presentation.

At the close of the former employee’s

examination of each witness, the

Commission shall be given an

opportunity to cross-examine each

witness.

(5) After the former employee has

completed his or her presentation, both

parties will be given an opportunity for

oral argument with the Commission

making its arguments first. Time shall be

offered during the oral argument for

Commission rebuttal.

(6} Decisions as to the admissibility of

evidence or testimony shall be made

under the Federal Rules of Evidence.

§ 7.31 Examiner’s decision.

(a) Initial determination. No later than

15 days after the close of the hearing,

the examiner shall make a

determination exclusively on matters of

record in the proceeding.

(b) Form o f determination. The

examiner’s determination shall set forth

all findings of fact and conclusions of

law relevant to the matters at issue.

(c) Copies. The examiner shall provide

copies of his or her determination to the

former employee, the complainant, the

Ethics Officer, and the Commission.

§ 7.32 Appeal.

(a) Right o f appeal. Within ten days

after receipt by certified mail of the

examiner’s decision, either party may

appeal such decision to the members of

the Commission by filing a notice of

appeal with the Chairman.

(b) Notice o f appeal. The notice of

appeal shall be accompanied by a

memorandum setting forth the legal and

factual reasons why the examiner’s

decision should be reversed or modified.

(c) Commission review o f appeal. The

Commission, by an affirmative vote of

four members, may affirm, modify, or

reverse the examiner’s decision. The

Commission’s decision shall be based

solely on the hearing record or those

portions thereof cited by the parties to

limit the issues.

(d) Commission statement on appeal.

If the Commission modifies or reverses

the initial decision, it shall specify such

findings of fact or conclusions of law as

are different from those of the examiner.

§ 7.33 Administrative sanctions.

The Commission may take

appropriate disciplinary action in the

case of any individual who is found in

violation of 18 U.S.C. 207 (a), (b), or (c)

after a final administrative hearing, or in

the absence of a hearing, after adequate

notice such as by:

(a) Prohibiting the individual from

making, on behalf of any person (except

the United States), any formal or

informal appearance before, or, with the

intent to influence, any oral or written

communication to the Commission on

any matter of business for a period not

to exceed five years, which may be

accomplished by directing agency

employees to refuse to participate in any

such appearance or to accept any such

communication;

(b) Issuing a letter of reprimand;

(c) Issuing a letter of admonishment;

(d) Prohibiting a former employee

•from making formal or informal

appearances or communications in

connection with a particular matter or

on behalf of a particular party.

(e) Taking other appropriate

disciplinary action.

Dated: September 24,1986.

Joan D. Aikens,

Chairman.

[FR Doc. 86-21898 Filed 9-26-86; 8:45 am] 

BILUNG CODE 6715-01-M

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 86-NM-187-AD; Arndt.

39- 5429]

Airworthiness Directives; Aerospatiale

Model ATR-42 Series Airplanes

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Final rule, request for

comments.

s u m m a r y : This action adopts a new

airworthiness directive (AD), applicable

to Aerospatiale Model ATR-42 series

airplanes, which requires the

installation of a positive stop to limit the

maximim flap setting to 30 degrees, and

an amendment to the FAA-approved

Airplane Flight Manual (AFM). This

amendment is prompted by a report of

uncommanded pitch excursions at a flap

setting of 45 degrees when tailplane

icing was present This condition, if not

corrected, could result in temporary or

total loss of control of the airplane.

DATES: Effective October 15,1986.

Comments must be received by October

15,1986.

ADDRESSES: Send comments on the

proposal in duplicate to the Federal

Aviation Administration, Northwest

Mountain Region, Office of the Regional

Counsel (Attention: ANM-103),

Attention: Airworthiness Rules Docket

No. 86-NM-187-AD, 17900 Pacific

Highway South, C-68966, Seattle,

Washington 98168. The applicable

service information may be obtained

from Aerospatiale, 316 Route de

Bayonne, 31060 Toulouse Cedex 03,

France. This information may be

examined at the Federal Aviation

Administration, Northwest Mountain

Region, 17900 Pacific Highway South,

Seattle, Washington, or the Seattle

Aircraft Certification Office, 9010 East

Marginal Way South, Seattle,

Washington.

FOR FURTHER INFORMATION CONTACT:

Ms. Judy Golder, Standardization

Branch, ANM-113; telephone (206) 431-

2909. Mailing address: FAA, Northwest

Mountain Region, 17900 Pacific Highway

South, C-68966, Seattle, Washington

98168.

SUPPLEMENTARY INFORMATION: The

Direction Générale de L’Aviation Civile

(DGAC), which is the airworthiness

authority of France, has, in accordance

with existing provisions of a bilateral

airworthiness agreement, notified the

FAA of an unsafe condition which may

exist on Aerospatiale Model ATR-42

airplanes. When ice is present on the