Federal Register / Vol. 60, No. 87 / Friday, May 5, 1995 / Rules and Regulations 22251

Debt after the proposed rule was

published.

Consistent with the additional grace

period extensions at 59 FR 4779–4780

and 60 FR 6390–6391, § 3101.111 has

been modified to grandfather until no

later than January 3, 1996, the Secret

Service rules prohibiting certain kinds

of outside employment.

V. Matters of Regulatory Procedure

Executive Order 12866, Regulatory

Planning and Review

This rule is limited to agency

organization, management and

personnel matters; therefore, it is not

subject to Executive Order 12866.

Regulatory Flexibility Act

It is hereby certified that this rule will

not have significant economic impact on

a substantial number of small entities.

This rule affects only Federal employees

and their immediate families.

List of Subjects in 5 CFR Part 3101

Conflict of interests, Government

employees.

Dated: January 29, 1995.

Edward S. Knight,

General Counsel, Department of the Treasury.

Approved: February 28, 1995.

Stephen D. Potts,

Director, Office of Government Ethics.

For the reasons set forth in the

preamble, the Department of the

Treasury, in concurrence with the Office

of Government Ethics, is amending title

5 of the Code of Federal Regulations by

adding a new chapter XXI, consisting of

part 3101, to read as follows:

CHAPTER XXI—DEPARTMENT OF THE

TREASURY

PART 3101—SUPPLEMENTAL

STANDARDS OF ETHICAL CONDUCT

FOR EMPLOYEES OF THE

DEPARTMENT OF THE TREASURY

Sec.

3101.101 General.

3101.102 Designation of separate agency

components.

3101.103 Prohibition on purchase of certain

assets.

3101.104 Outside employment.

3101.105 Additional rules for Bureau of

Alcohol, Tobacco and Firearms

employees.

3101.106 Additional rules for Internal

Revenue Service employees.

3101.107 Additional rules for Legal

Division employees.

3101.108 Additional rules for Office of the

Comptroller of the Currency employees.

3101.109 Additional rules for Office of

Thrift Supervision employees.

3101.110 Additional rules for United States

Customs Service employees.

3101.111 Additional rules for United States

Secret Service employees.

Authority: 5 U.S.C. 301, 7301, 7353; 5

U.S.C. App. (Ethics in Government Act of

1978); 26 U.S.C. 7214(b); E.O. 12674, 54 FR

15159, 3 CFR, 1989 Comp., p. 215, as

modified by E.O. 12731, 55 FR 42547, 3 CFR,

1990 Comp., p. 306.; 5 CFR 2635.105,

2635.203(a), 2635.403(a), 2635.803,

2635.807(a)(2)(ii).

§ 3101.101 General.

(a) Purpose. In accordance with 5 CFR

2635.105, the regulations in this part

apply to employees of the Department of

the Treasury and supplement the

Standards of Ethical Conduct for

Employees of the Executive Branch

contained in 5 CFR part 2635.

Employees are required to comply with

5 CFR part 2635, this part, and bureau

guidance and procedures established

pursuant to this section. Department

employees are also subject to any

additional rules of conduct that the

Department or their employing bureaus

are authorized to issue. See 31 CFR part

0, Department of the Treasury Employee

Rules of Conduct.

(b) Bureau instructions. With the

concurrence of the Designated Agency

Ethics Official (DAEO), bureaus of the

Department of the Treasury are

authorized to issue instructions or

manual issuances providing explanatory

guidance and establishing procedures

necessary to implement this part and

part 2635 of this title. See 5 CFR

2635.105(c).

(c) Definition of ‘‘agency designee’’.

As used in this part and in part 2635 of

this title, the term ‘‘agency designee’’

refers to any employee who has been

delegated authority by an instruction or

manual issuance issued by a bureau

under paragraph (b) of this section to

make a determination, give an approval,

or take other action required or

permitted by this part or part 2635 of

this title with respect to another

employee. See 5 CFR 2635.102(b).

§ 3101.102 Designation of separate agency

components.

Pursuant to 5 CFR 2635.203(a), each

of the following components of the

Department of the Treasury is

designated as a separate agency for

purposes of the regulations contained in

subpart B of 5 CFR part 2635 governing

gifts from outside sources and 5 CFR

2635.807 governing teaching, speaking

or writing:

(a) Bureau of Alcohol, Tobacco and

Firearms (ATF);

(b) Bureau of Engraving and Printing;

(c) Bureau of the Public Debt;

(d) Federal Law Enforcement Training

Center;

(e) Financial Management Service;

(f) Internal Revenue Service (IRS);

(g) Office of the Comptroller of the

Currency (OCC);

(h) Office of the Inspector General;

(i) Office of Thrift Supervision (OTS);

(j) United States Customs Service

(USCS);

(k) United States Mint; and

(l) United States Secret Service.

For purposes of this section,

employees in the Legal Division shall be

considered to be part of the bureaus or

offices in which they serve.

Note: As a result of the designations

contained in this section, employees of the

remaining parts of the Department of the

Treasury (e.g., employees in Departmental

Offices, including the Financial Crimes

Enforcement Network) will also be treated as

employees of an agency that is separate from

all of the above listed bureaus and offices for

purposes of determining whether the donor

of a gift is a prohibited source under 5 CFR

2635.203(d) and for identifying an

employee’s ‘‘agency’’ under 5 CFR 2635.807

governing teaching, speaking and writing.

§ 3101.103 Prohibition on purchase of

certain assets.

(a) General prohibition. Except as

provided in paragraph (b) of this

section, no employee of the Department

of the Treasury shall purchase, directly

or indirectly, property:

(1) Owned by the Government and

under the control of the employee’s

bureau (or a bureau over which the

employee exercises supervision); or

(2) Sold under the direction or

incident to the functions of the

employee’s bureau.

(b) Exceptions. The prohibition in

paragraph (a) of this section does not

apply to the purchase of Government

securities or items sold generally to the

public at fixed prices, such as

numismatic items produced by the

United States Mint or foreign gifts

deposited with the Department pursuant

to 5 U.S.C. 7342 that an employee may

purchase pursuant to 41 CFR part 101–

49.

(c) Waiver. An employee may make a

purchase otherwise prohibited by this

section where a written waiver of the

prohibition has been given to the

employee by an agency designee with

the advice and legal clearance of the

DAEO, or the appropriate Office of Chief

or Legal Counsel. Such a waiver may be

granted only on a determination that the

waiver is not otherwise prohibited by

law and that, in the mind of a

reasonable person with knowledge of

the particular circumstances, the

purchase of the asset will not raise a

question as to whether the employee has

used his or her official position or

inside information to obtain an
22252 Federal Register / Vol. 60, No. 87 / Friday, May 5, 1995 / Rules and Regulations

advantageous purchase or create an

appearance of loss of impartiality in the

performance of the employee’s duties.

Note: Employees of the OCC and OTS are

subject to additional limitations on the

purchase of assets that are set out in bureauspecific rules contained in §§ 3101.108 and

3101.109.

§ 3101.104 Outside employment.

(a) General requirement for prior

approval. All Department of the

Treasury employees shall obtain prior

written approval before engaging in any

outside employment or business

activities, with or without

compensation, except to the extent that

the employing bureau issues an

instruction or manual issuance pursuant

to paragraph (b) of this section

exempting an activity or class of

activities from this requirement.

Approval shall be granted only on a

determination that the employment or

activity is not expected to involve

conduct prohibited by statute, part 2635

of this title, or any provision of this part.

Note: Employees of the ATF, IRS, Legal

Division, OCC, USCS and United States

Secret Service are subject to additional

limitations on outside employment and

activities that are set out in bureau-specific

rules contained in this part.

(b) Bureau responsibilities. Each

bureau, which for the purposes of this

section includes the Departmental

Offices and the Office of the Inspector

General, shall issue instructions or

manual issuances governing the

submission of requests for approval of

outside employment or business

activities and designating appropriate

officials to act on such requests. The

instructions or manual issuances may

exempt categories of employment or

activities from the prior approval

requirement based on a determination

that employment or activities within

those categories would generally be

approved and are not likely to involve

conduct prohibited by statute, part 2635

of this title or any provision of this part.

Bureaus may include in their

instructions or issuances examples of

outside employment or activities that

are permissible or impermissible

consistent with this part and part 2635

of this title. Bureaus shall retain in

employees’ Official Personnel Folders

(temporary side) all requests for

approval whether granted or denied.

§ 3101.105 Additional rules for Bureau of

Alcohol, Tobacco and Firearms employees.

The following rules apply to the

employees of the Bureau of Alcohol,

Tobacco and Firearms and are in

addition to §§ 3101.101 through

3101.104:

(a) Prohibited financial interests.

Except as provided in this section, no

employee of the ATF, or spouse or

minor child of an ATF employee, shall

have, directly or indirectly, any

financial interest, including

compensated employment, in the

alcohol, tobacco, firearms or explosives

industries. The term financial interest is

defined in § 2635.403(c) of this title.

(b) Waiver. An agency designee, with

the advice and legal clearance of the

DAEO or Office of the Chief Counsel,

may grant a written waiver of the

prohibition in paragraph (a) of this

section on a determination that the

financial interest is not prohibited by 26

U.S.C. 7214(b) and that, in the mind of

a reasonable person with knowledge of

the particular circumstances, the

financial interest will not create an

appearance of misuse of position or loss

of impartiality, or call into question the

impartiality and objectivity with which

the ATF’s programs are administered. A

waiver under this paragraph may

require appropriate conditions, such as

execution of a written disqualification.

§ 3101.106 Additional rules for Internal

Revenue Service employees.

The following rules apply to the

employees of the Internal Revenue

Service and are in addition to

§§ 3101.101 through 3101.104:

(a) Prohibited recommendations.

Employees of the IRS shall not

recommend, refer or suggest,

specifically or by implication, any

attorney, accountant, or firm of

attorneys or accountants to any person

in connection with any official business

which involves or may involve the IRS.

(b) Prohibited outside employment.

Involvement by an employee of the IRS

in the following types of outside

employment or business activities is

prohibited and shall constitute a

conflict with the employee’s official

duties pursuant to 5 CFR 2635.802:

(1) Performance of legal services

involving Federal, State or local tax

matters;

(2) Appearing on behalf of any

taxpayer as a representative before any

Federal, State, or local government

agency, in an action involving a tax

matter except on written authorization

of the Commissioner of Internal

Revenue;

(3) Engaging in accounting, or the use,

analysis, and interpretation of financial

records when such activity involves tax

matters;

(4) Engaging in bookkeeping, the

recording of transactions, or the recordmaking phase of accounting, when such

activity is directly related to a tax

determination; and

(5) Engaging in the preparation of tax

returns for compensation, gift, or favor.

(c) Seasonal employees. Seasonal

employees of the IRS while in non-duty

status may engage in outside

employment or activities other than

those prohibited by paragraph (b) of this

section without obtaining prior written

permission.

§ 3101.107 Additional rules for Legal

Division employees.

The following rules apply to the

employees of the Legal Division and are

in addition to §§ 3101.101 through

3101.104:

(a) Application of rules of other

bureaus. In addition to the rule

contained in paragraph (b) of this

section, employees in the Legal Division

shall be covered by the rules contained

in this part that are applicable to

employees of the bureaus or offices in

which the Legal Division employees

serve, subject to any instructions which

the General Counsel or appropriate

Chief or Legal Counsel may issue in

accordance with § 3101.101(b).

(b) Prohibited outside employment.

Pursuant to 5 CFR 2635.802, it is

prohibited and shall constitute a

conflict with the employee’s official

duties for an attorney employed in the

Legal Division to engage in the outside

practice of law that might require the

attorney to:

(1) Take a position that is or appears

to be in conflict with the interests of the

Department of the Treasury which is the

client to whom the attorney owes a

professional responsibility; or

(2) Interpret any statute, regulation or

rule administered or issued by the

Department.

§ 3101.108 Additional rules for Office of

the Comptroller of the Currency employees.

The following rules apply to the

employees of the Office of the

Comptroller of the Currency and are in

addition to §§ 3101.101–3101.104:

(a) Prohibited financial interests—(1)

Prohibition. Except as provided in

paragraphs (a)(3) and (g) of this section,

no OCC employee, or spouse or minor

child of an OCC employee, shall own,

directly or indirectly, securities of any

commercial bank (including both

national and State-chartered banks) or

commercial bank affiliate, including a

bank holding company.

(2) Definition of ‘‘securities’’. For

purposes of paragraphs (a)(1) and (a)(3)

of this section, the term ‘‘securities’’

includes all interests in debt or equity

instruments. The term includes, without

limitation, secured and unsecured

bonds, debentures, notes, securitized

assets and commercial paper, as well as