[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Rules and Regulations]
[Pages 28535-28538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13318]



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DEPARTMENT OF THE TREASURY

31 CFR Part 0


Employee Rules of Conduct

AGENCY: Department of the Treasury.

ACTION: Interim rule.

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SUMMARY: The Department of the Treasury is issuing the Employee Rules 
of Conduct which will prescribe uniform rules of conduct and procedure 
for all employees and officials in the Department.

DATES: This interim rule is effective June 1, 1995. Comments must be 
received or postmarked on or before July 3, 1995.

ADDRESSES: Comments should be submitted to the Office of the Assistant 
General Counsel (General Law and Ethics), Department of the Treasury, 
Room 1410, Washington, DC 20220, Attention: Mr. R. Peter Rittling or by 
e-mail at the following address Peter.R<a href="/cdn-cgi/l/email-protection#4c2538382025222b0c383e292d3f623f3c3e252238622f2321"><span class="__cf_email__" data-cfemail="e48d9090888d8a83a49096818597ca9794968d8a90ca878b89">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Stephen J. McHale, Henry H. Booth, or 
R. Peter Rittling, Office of the Assistant General Counsel (General Law 
and Ethics), Department of the Treasury, telephone (202) 622-0450, FAX 
(202) 622-1176, e-mail Peter.R<a href="/cdn-cgi/l/email-protection#8be2ffffe7e2e5eccbfff9eeeaf8a5f8fbf9e2e5ffa5e8e4e6"><span class="__cf_email__" data-cfemail="adc4d9d9c1c4c3caedd9dfc8ccde83dedddfc4c3d983cec2c0">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

    On August 7, 1992, the Office of Government Ethics (OGE) published 
the Standards of Ethical Conduct for Employees of the Executive Branch 
(5 CFR Part 2635). The Executive Branch-wide Standards became effective 
on February 3, 1993, superseding many, but not all, of the Department-
wide conduct rules published at 31 CFR Part 0 (see also the grace 
period extension at 59 FR 4779-4780, February 2, 1994). This rule 
making repeals part 0 in its entirety and issues a new part 0. The new 
part 0 includes conduct rules previously published in part 0 that were 
not superseded and continue to be important to the efficient 
functioning of the Department. Many of the regulations included in the 
Rules of Conduct have been revised pursuant to changes in the law or 
Department policy.
    Simultaneously, in a separate rule making, the Department is 
issuing as a final rule the Supplemental Standards of Ethical Conduct 
for Employees of the Department of the Treasury. The Supplemental 
Standards, to be codified at 5 CFR chapter XXI, prescribe Department-
specific ethics regulations supplemental to the Executive Branch-wide 
Standards.

II. Analysis of the Regulations

Subpart A--General Provisions

    The provisions contained in subpart A state the policy and purpose 
of the Rules of Conduct and the responsibilities of the Department's 
employees and officials in implementing and complying with the included 
regulations. Subpart A also includes a definitional section. The United 
States Savings Bonds Division is omitted from the definition of Bureau 
in Sec. 0.103 because it was assumed into the Bureau of the Public Debt 
and no longer exists as a separate component of the Department.

Subpart B--Rules of Conduct

    Subpart B sets out the conduct regulations that all Department 
employees and officials are required to follow. Generally, the rules 
regulate employee conduct including, for example, the use of Government 
vehicles or the use of controlled substances and intoxicants while an 
employee is on duty or on Government property. Regulations concerning 
conflicts of interest and ethics are contained in the Executive Branch-
wide Standards and the Treasury Supplemental Standards.

Subpart C--Special Government Employees

    Section 0.301 of subpart C explains that, with little variation, 
special Government employees employed with the Department are required 
to comply with the Rules of Conduct to the same degree as regular 
employees. Further, Sec. 0.303 requires a special Government employee, 
serving concurrently with another Federal agency, to inform the 
Department of that fact so that the Department may take the appropriate 
administrative actions and avoid any conflict in duties or 
remuneration.

Subpart D--Advisers to the Department

    Subpart D includes a definition of adviser to the Department and 
instructs individuals uncertain about their relationship with the 
Department to seek advice from the appropriate ethics official. 
Further, Sec. 0.401(b) explains that it is the Department's policy that 
advisers should refer to the Rules of Conduct for guidance when working 
with the Department even though they are not required to follow the 
Rules.
III. Matters of Regulatory Procedure

Administrative Procedure Act

    The Department finds that good cause exists for waiving the notice 
and comment requirements contained in 5 U.S.C. 553(b) and (d). The 
Department of the Treasury Employee Rules of Conduct contain statements 
of policy, interpretive rules, and conduct regulations relating solely 
to agency management and personnel. Moreover, this rule making 
essentially reissues in revised form many of the conduct rules 
previously published in 31 CFR Part 0. However, because this rule may 
be improved, comments may be submitted on or before July 3, 1995. All 
comments will be analyzed and any appropriate changes to the rule will 
be incorporated in the subsequent publication of the final rule.

Executive Order 12866, Regulatory Planning and Review

    This rule is limited to agency organization, management and 
personnel matters; therefore, it is not subject to Executive Order 
12866.

Regulatory Flexibility Act

    It is hereby certified that this rule will not have a significant 
economic impact on a substantial number of small entities. This rule 
affects only Federal employees.

List of Subjects in 31 CFR Part 0

    Government employees.

    Dated: January 29, 1995.
Edward S. Knight,
General Counsel, Department of the Treasury.

    For the reasons set forth in the preamble, 31 CFR part 0 is revised 
to read as follows:

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

Subpart A--General Provisions

Sec.
0.101  Purpose.
0.102  Policy.
0.103  Definitions. [[Page 28536]] 

Responsibilities

0.104  Designated Agency Ethics Official and Alternate Designated 
Agency Ethics Official.
0.105  Deputy Ethics Official.
0.106  Bureau Heads.
0.107  Employees.

Subpart B--Rules of Conduct

0.201  Political activity.
0.202  Strikes.
0.203  Gifts or gratuities from foreign governments.
0.204  Use of controlled substances and intoxicants.
0.205  Care of documents and data.
0.206  Disclosure of information.
0.207  Cooperation with official inquiries.
0.208  Falsification of official records.
0.209  Use of Government vehicles.
0.210  Conduct while on official duty or on Government property.
0.211  Soliciting, selling and canvassing.
0.212  Influencing legislation or petitioning Congress.
0.213  General conduct prejudicial to the Government.
0.214  Nondiscrimination.
0.215  Possession of weapons and explosives.
0.216  Privacy Act.
0.217  Personal financial interests.

Subpart C--Special Government Employees

0.301  Applicability of subpart B.
0.302  Service with other Federal agencies.

Subpart D--Advisers to the Department

0.401  Advisers to the Department.

    Authority: 5 U.S.C. 301.

Subpart A--General Provisions


Sec. 0.101  Purpose.

    (a) The Department of the Treasury Employee Rules of Conduct 
(Rules) are separate from and additional to the Standards of Ethical 
Conduct for Employees of the Executive Branch (Executive Branch-wide 
Standards) (5 CFR part 2635) and the Supplemental Standards of Ethical 
Conduct for Employees of the Department of the Treasury (Treasury 
Supplemental Standards) (to be codified at 5 CFR part 3101). The Rules 
prescribe employee rules of conduct and procedure and provide for 
disciplinary action for the violation of the Rules, the Treasury 
Supplemental Standards, the Executive Branch-wide Standards, and any 
other rule, regulation or law governing Department employees.
    (b) The Rules are not all-inclusive and may be modified by 
interpretive guidelines and procedures issued by the Department's 
bureaus. The absence of a specific published rule of conduct covering 
an action does not constitute a condonation of that action or indicate 
that the action would not result in corrective or disciplinary action.


Sec. 0.102  Policy.

    (a) All employees and officials of the Department are required to 
follow the rules of conduct and procedure contained in the Rules, the 
Treasury Supplemental Standards, the Executive Branch-wide Standards of 
Ethical Conduct, the Employee Responsibilities and Conduct (5 CFR part 
735), and any bureau issued rules.
    (b) Employees found in violation of the Rules, the Treasury 
Supplemental Standards, the Executive Branch-wide Standards or any 
applicable bureau rule may be instructed to take remedial or corrective 
action to eliminate the conflict. Remedial action may include, but is 
not limited to:
    (1) Reassignment of work duties;
    (2) Disqualification from a particular assignment;
    (3) Divestment of a conflicting interest; or
    (4) Other appropriate action.
    (c) Employees found in violation of the Rules, the Treasury 
Supplemental Standards, the Executive Branch-wide Standards or any 
applicable bureau rule may be disciplined in proportion to the gravity 
of the offense committed, including removal. Disciplinary action will 
be taken in accordance with applicable laws and regulations and after 
consideration of the employee's explanation and any mitigating factors. 
Further, disciplinary action may include any additional penalty 
prescribed by law.


Sec. 0.103  Definitions.

    The following definitions are used throughout this part: (a) 
Adviser means a person who provides advice to the Department as a 
representative of an outside group and is not an employee or special 
Government employee as those terms are defined in Sec. 0.103.
    (b) Bureau means:
    (1) Bureau of Alcohol, Tobacco and Firearms;
    (2) Bureau of Engraving and Printing;
    (3) Bureau of the Public Debt;
    (4) Departmental Offices;
    (5) Federal Law Enforcement Training Center;
    (6) Financial Management Service;
    (7) Internal Revenue Service;
    (8) Legal Division;
    (9) Office of the Comptroller of the Currency;
    (10) Office of the Inspector General;
    (11) Office of Thrift Supervision;
    (12) United States Customs Service;
    (13) United States Mint;
    (14) United States Secret Service; and
    (15) Any organization designated as a bureau by the Secretary 
pursuant to appropriate authority.
    (c) Person means an individual, corporation and subsidiaries it 
controls, company, association, firm, partnership, society, joint stock 
company, or any other organization or institution as specified in 5 CFR 
2635.102(k).
    (d) Regular employee or employee means an officer or employee of 
the Department of the Treasury but does not include a special 
Government employee.
    (e) Special Government employee means an officer or employee who is 
retained, designated, appointed, or employed to perform temporary 
duties either on a full-time or intermittent basis, with or without 
compensation, for a period not to exceed 130 days during any 
consecutive 365-day period. See 18 U.S.C. 202(a).

Responsibilities


Sec. 0.104  Designated Agency Ethics Official and Alternate Designated 
Agency Ethics Official.

    The Deputy General Counsel is the Department's Designated Agency 
Ethics Official (DAEO). The DAEO is responsible for managing the 
Department's ethics program, including coordinating ethics counseling 
and interpreting questions of conflicts of interest and other matters 
that arise under the Executive Branch-wide Standards and Treasury 
Supplemental Standards and Rules. See 5 CFR 2638.203. The Senior 
Counsel for Ethics is the Alternate Designated Agency Ethics Official.


Sec. 0.105  Deputy Ethics Official.

    The Chief Counsel or Legal Counsel for a bureau, or a designee, is 
the Deputy Ethics Official for that bureau. The Legal Counsel for the 
Financial Crimes Enforcement Network is the Deputy Ethics Official for 
that organization. It is the responsibility of the Deputy Ethics 
Official to give authoritative advice and guidance on conflicts of 
interest and other matters arising under the Executive Branch-wide 
Standards, Treasury Supplemental Standards, and the Rules.


Sec. 0.106  Bureau Heads.

    Bureau heads or designees are required to:
    (a) Provide all employees with a copy of Executive Order 12674, as 
amended by Executive Order 12731, the Executive Branch-wide Standards, 
the Treasury Supplemental Standards and the Rules; provide all new 
employees with an explanation of the contents and application of the 
Executive Branch-wide Standards, Treasury Supplemental Standards and 
the Rules; and provide all departing employees with an explanation of 
the applicable post-employment restrictions contained in 18 
[[Page 28537]] U.S.C. 207 and 5 CFR part 2641 and any other applicable 
law or regulation.
    (b) Provide guidance and assistance to supervisors and employees in 
implementing and adhering to the rules and procedures included in the 
Executive Branch-wide Standards and Treasury Supplemental Standards and 
Rules; obtain any necessary legal advice or interpretation from the 
Designated Agency Ethics Official or a Deputy Ethics Official; and 
inform employees as to how and from whom they may obtain additional 
clarification or interpretation of the Executive Branch-wide Standards, 
Treasury Supplemental Standards, Rules, and any other relevant law, 
rule or regulation.
    (c) Take appropriate corrective or disciplinary action against an 
employee who violates the Executive Branch-wide Standards, Treasury 
Supplemental Standards or Rules, or any other applicable law, rule or 
regulation, and against a supervisor who fails to carry out his 
responsibilities in taking or recommending corrective or disciplinary 
action when appropriate against an employee who has committed an 
offense.


Sec. 0.107  Employees.

    (a) Employees are required to:
    (1) Read and follow the rules and procedures contained in the 
Executive Branch-wide Standards, Treasury Supplemental Standards, and 
Rules;
    (2) Request clarification or interpretation from a supervisor or 
ethics official if the application of a rule contained in the Executive 
Branch-wide Standards, Treasury Supplemental Standards, or Rules is not 
clear;
    (3) Report to the Inspector General or to the appropriate internal 
affairs office of the Bureau of Alcohol, Tobacco and Firearms, Customs 
Service, Internal Revenue Service, or Secret Service, any information 
indicating that an employee, former employee, contractor, 
subcontractor, or potential contractor engaged in criminal conduct or 
that an employee or former employee violated the Executive Branch-wide 
Standards or the Treasury Supplemental Standards or Rules. Legal 
Division attorneys acquiring this type of information during the 
representation of a bureau shall report it to the appropriate Chief or 
Legal Counsel or the Deputy General Counsel, who shall report such 
information to the Inspector General or appropriate internal affairs 
office; and
    (4) Report to the Inspector General information defined in 
paragraph (a)(3) of this section relating to foreign intelligence or 
national security, as covered in Executive Order 12356. Legal Division 
attorneys acquiring this type of information during the representation 
of a bureau shall report it to the Deputy General Counsel, who shall 
report such information to the Inspector General.
    (b) The confidentiality of the source of the information reported 
to the Inspector General or the internal affairs office under this 
section will be maintained to the extent appropriate under the 
circumstances.

Subpart B--Rules of Conduct


Sec. 0.201  Political activity.

    (a) Employees may:
    (1) Take an active part in political management or in political 
campaigns to the extent permitted by law (5 U.S.C. 7321-7326); and
    (2) Vote as they choose and express their opinions on political 
subjects and candidates.
    (b) Employees may not use their official authority or influence to 
interfere with or affect election results.
    (c) Employees may be disqualified from employment for knowingly 
supporting or advocating the violent overthrow of our constitutional 
form of government.

    Note: The Hatch Act Reform Amendments of 1993 significantly 
reduced the statutory restrictions on the political activity of most 
Department employees. However, career members of the Senior 
Executive Service and employees of the Secret Service, the Internal 
Revenue Service, Office of Criminal Investigation, the Customs 
Service, Office of Investigative Programs, and the Bureau of 
Alcohol, Tobacco and Firearms, Office of Law Enforcement, remain 
subject to significant restrictions on their political activities.


Sec. 0.202  Strikes.

    Employees shall not strike against the Government.


Sec. 0.203  Gifts or gratuities from foreign governments.

    (a) The United States Constitution prohibits employees from 
accepting gifts, emoluments, offices, or titles from a foreign 
government without the consent of the Congress. Congress has consented 
to an employee accepting and retaining a gift from a foreign government 
that is of minimal value and offered as a souvenir or mark of courtesy, 
unless otherwise prohibited by bureau regulation (5 U.S.C. 7342). 
Minimal value is prescribed in 41 CFR part 101-49 and was set at 
$225.00 on the date that the Rules became effective.
    (b) All gifts exceeding minimal value, the refusal of which would 
likely cause offense or embarrassment or otherwise adversely affect the 
foreign relations of the United States, shall be accepted and deposited 
with the Department within sixty days of acceptance. If the gift is 
travel or expenses for travel taking place entirely outside the United 
States, it shall be reported within thirty days (see 5 U.S.C. 
7342(c)(1)(B)(ii)).
    (c) As used in paragraph (b) of this section, Deposit with the 
Department means delivery to the Department Gift Unit or other 
depository as authorized by the Treasury Directive on Foreign Gifts 
(Treasury Directive 61-04).
    (d) All foreign gifts must be reported as prescribed in the 
Treasury Directive on Foreign Gifts (Treasury Directive 61-04).


Sec. 0.204  Use of controlled substances and intoxicants.

    Employees shall not sell, use or possess controlled substances or 
intoxicants in violation of the law while on Department property or 
official duty, or use a controlled substance or intoxicant in a manner 
that adversely affects their work performance.


Sec. 0.205  Care of documents and data.

    (a) Employees shall not conceal, remove, alter, destroy, mutilate 
or access documents or data in the custody of the Federal Government 
without proper authority.
    (b) Employees are required to care for documents according to 
Federal law and regulation, and Department procedure (18 U.S.C. 2071, 5 
U.S.C. 552, 552a).
    (c) The term documents includes, but is not limited to, any 
writing, recording, computer tape or disk, blueprint, photograph, or 
other physical object on which information is recorded.
Sec. 0.206  Disclosure of information.

    Employees shall not disclose official information without proper 
authority, pursuant to Department or bureau regulation. Employees 
authorized to make disclosures should respond promptly and courteously 
to requests from the public for information when permitted to do so by 
law (31 CFR 1.9, 1.10, and 1.28(b)).


Sec. 0.207  Cooperation with official inquiries.

    Employees shall respond to questions truthfully and under oath when 
required, whether orally or in writing, and must provide documents and 
other materials concerning matters of official interest when directed 
to do so by competent Treasury authority.


Sec. 0.208  Falsification of official records.

    Employees shall not intentionally make false, misleading or 
ambiguous statements, orally or in writing, in connection with any 
matter of official interest. Matters of official interest include among 
other things: Transactions with the public, [[Page 28538]] government 
agencies or fellow employees; application forms and other forms that 
serve as a basis for appointment, reassignment, promotion or other 
personnel action; vouchers; leave records and time and attendance 
records; work reports of any nature or accounts of any kind; 
affidavits; entry or record of any matter relating to or connected with 
an employee's duties; and reports of any moneys or securities received, 
held or paid to, for or on behalf of the United States.


Sec. 0.209  Use of Government vehicles.

    Employees shall not use Government vehicles for unofficial 
purposes, including to transport unauthorized passengers. The use of 
Government vehicles for transporting employees between their domiciles 
and places of employment must be authorized by statute (See, e.g., 31 
U.S.C. 1344).


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

    Employees must adhere to the regulations controlling conduct when 
they are on official duty or in or on Government property, including 
the Treasury Building, Treasury Annex Building and grounds; the Bureau 
of Engraving and Printing buildings and grounds; the United States Mint 
buildings and grounds; the grounds of the Federal Law Enforcement 
Training Center; and Treasury-occupied General Services Administration 
buildings and grounds (see 31 CFR parts 91, 407, 605, 700).


Sec. 0.211  Soliciting, selling and canvassing.

    Employees shall not solicit, make collections, canvass for the sale 
of any article, or distribute literature or advertising in any space 
occupied by the Department without appropriate authority.


Sec. 0.212  Influencing legislation or petitioning Congress.

    (a) Employees shall not use Government time, money, or property to 
petition a Member of Congress to favor or oppose any legislation. This 
prohibition does not apply to the official handling, through the proper 
channels, of matters relating to legislation in which the Department of 
the Treasury has an interest.
    (b) Employees, individually or collectively, may petition Congress 
or Members of Congress or furnish information to either House of 
Congress when not using Government time, money or property (5 U.S.C. 
7211).


Sec. 0.213  General conduct prejudicial to the Government.

    Employees shall not engage in criminal, infamous, dishonest, or 
notoriously disgraceful conduct, or any other conduct prejudicial to 
the Government.


Sec. 0.214  Nondiscrimination.
    (a) Employees shall not discriminate against or harass any other 
employee, applicant for employment or person dealing with the 
Department on official business on the basis of race, color, religion, 
national origin, sex, sexual orientation, age, or disability. Sexual 
harassment is a form of sex discrimination and is prohibited by this 
section.
    (b) An employee who engages in discriminatory conduct may be 
disciplined under these rules. However, this section does not create 
any enforceable legal rights in any person.


Sec. 0.215  Possession of weapons and explosives.

    (a) Employees shall not possess firearms, explosives, or other 
dangerous or deadly weapons, either openly or concealed, while on 
Government property or official duty.
    (b) The prohibition in paragraph (a) of this section does not apply 
to employees who are required to possess weapons or explosives in the 
performance of their official duties.


Sec. 0.216  Privacy Act.

    Employees involved in the design, development, operation, or 
maintenance of any system of records or in maintaining records subject 
to the Privacy Act of 1974, as amended (5 U.S.C. 552a), shall comply 
with the conduct regulations delineated in 31 CFR 1.28(b).


Sec. 0.217  Personal financial interests.

    (a) Employees may hold the following financial interests without 
violating 18 U.S.C. 208(a):
    (1) The stocks or bonds of a publicly traded corporation with a 
value of $1000 or less; and
    (2) The stocks or bonds in the investment portfolio of a 
diversified mutual fund in which an employee has invested.
    (b) The Department has found that the financial interests listed in 
paragraph (a) of this section are too remote and inconsequential to 
affect the integrity of an employee's service.

Subpart C--Special Government Employees


Sec. 0.301  Applicability of subpart B.

    The rules of conduct contained in subpart B of this part apply to 
special Government employees employed with the Treasury Department. The 
regulations contained in Sec. 0.201 of subpart B, concerning political 
activity, apply to special Government employees only on the days that 
they serve the Department. Treasury bureaus are responsible for 
informing special Government employees employed with them of the 
applicability of bureau specific statutes or regulations.


Sec. 0.302  Service with other Federal agencies.

    A special Government employee serving concurrently in the 
Department and in a Federal agency other than the Department is 
required to inform the Department and the agency in which he serves of 
the arrangement so that appropriate administrative measures may be 
taken.

Subpart D--Advisers to the Department


Sec. 0.401  Advisers to the Department.

    (a) An adviser or advisory committee member includes an individual 
who provides advice to the Department as a representative of an outside 
group and is not an employee or special Government employee of the 
Department. Questions concerning whether an individual serves the 
Department in the capacity of an adviser, employee, or special 
Government employee shall be addressed to the Designated Agency Ethics 
Official or a Deputy Ethics Official.
    (b) Advisers or advisory committee members are not required to 
follow the Rules and are not generally required by the Department to 
file financial disclosure statements; nevertheless, they should be 
guided by the regulations in this part covering such issues as public 
disclosure of official information (Sec. 0.206), conduct (Sec. 0.211 
and Sec. 0.213), and gifts or gratuities from Foreign governments 
(Sec. 0.203).

[FR Doc. 95-13318 Filed 5-31-95; 8:45 am]
BILLING CODE 4810-25-P

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