Impact of DOI Supplemental Regulations on USGS Employees Date: Thu, 09 Apr 1998 14:30:48 -0400 To: "USGS Employees" From: "Virginia G. Miles" Subject: New DOI Supplemental Standards of Ethical Conduct April 9, 1998 MEMORANDUM To: All Employees, U.S. Geological Survey From: Deputy Bureau Ethics Counselor Office of Personnel Subject: Impact of DOI Supplemental Regulations on USGS Employees The Department of the Interior has published new Supplemental Standards of Ethical Conduct at 5 CFR 3501, and amended Employee Responsibilities and Conduct at 43 CFR Part 20. The regulations were effective October 16, 1997. Publication of the final rule is expected in April 1998. Brief highlights of the Supplement that impact USGS employees are described below. You are strongly encouraged to review the more detailed summary, Ethics Advisory 98-01--Ethics Guidelines for USGS Employees, available on the Human Resources Homepage at: http://www.usgs.gov:8888/ops/hro/ethics/98-01.html to ascertain how the changes affect you, your spouse, and children. The Supplemental Standards of Conduct are the controlling authority which should be consulted for detailed information. USGS employees are responsible for knowing and complying with the regulations. The full text of the Supplement and amended Employee Responsibilities and Conduct can be reviewed at: http://www.usgs.gov:8888/ops/hro/ethics/conduct/indxsupp.html. FINANCIAL INTERESTS: The Department's supplemental standards codify the long-standing USGS Policy covering limitations on the financial holdings of USGS employees, their spouses, and minor children in private mining activities in the United States. The Policy remains nearly the same as it has been, except that: (A) It imposes broader limitations on holdings in gas/oil/mining interests that may be obtained by a spouse or minor child of a USGS employee. Certain exceptions are permitted, but they may no longer purchase these assets with their "independently acquired funds." (In order to foster consistency in application, the USGS will apply similar rules and exceptions to the acquisition or retention of financial holdings by a spouse or minor child in assets in oil/gas/mining interests on Federal lands that are prohibited under the Organic Act.) (B) It prohibits for all USGS employees the holding of mutual funds that have the objective of concentrating their investments in entities engaged in mining activities in the United States. (C) It limits the amount employees may receive from Overriding Royalty Interests (ORRI) to no more than $600 per year, making it the same as the more typical Mineral Royalties. Questions concerning financial assets should be directed to the Deputy Ethics Counselor, Virginia G. Miles, at 703/648-7474. You may review the current list of securities that are prohibited/limited for USGS employees in the annual Financial Guide #17, available at: http://www.usgs.gov:8888/ops/hro/ethics/finance.html or in hard copy from the Ethics Program Office. Since mergers, acquisitions, and other changes occur throughout the year, information in the Guide is in constant revision, and you may obtain more current information from the Deputy Ethics Counselor at any time. All employees are responsible for informing themselves of financial assets that may be prohibited or limited to them as USGS employees, including changes in company status that may affect their holdings. If you believe that a particular financial holding may be prohibited or limited to you, you should immediately contact the Deputy Ethics Counselor in order to resolve the conflict of interest and to preserve any rights you may have to obtain a Certificate of Divestiture that allows you to defer capital gains tax on the sale of the asset. OUTSIDE EMPLOYMENT: The Department's supplemental regulations reaffirm the USGS policy that requires advance written approval of outside employment requests for USGS employees, but it now requires approval of all outside employment. However, the regulations allow the USGS to exempt certain categories of outside employment from the prior written approval requirement. Therefore, the USGS exempts the following requests from the advance approval requirements: those requests which, when considered by a reasonable person with all of the relevant facts, would clearly have no relationship to the employee's official duties or the Bureau's program responsibilities; and those requests which would not create even the appearance of a conflict-of-interest with official duties or the mission of the USGS. If the possibility of a relationship or a conflict-of-interest with official duties or the Bureau's program responsibilities exists, an outside employment request should be submitted for advance approval. The Department's supplemental regulations also reaffirm a Departmental requirement that advance written approval be received for any outside employment which is to be performed for a "prohibited source." For a USGS employee, a prohibited source is defined as a person or organization that: (A) is seeking official action by the USGS; (B) does business or is seeking to do business with the USGS; (C) conducts activities regulated by the USGS; (D) has interests that may be substantially affected by the performance or nonperformance of the employee's official duties; (E) is an organization a majority of whose members are described in (A) through (D) above; or (F) is on the list of prohibited or limited holdings under the most recent issuance of the "Guide to Financial Interests for USGS Employees." Please refer to the homepage cite listed above for more detailed information concerning evaluation and approval of outside employment requests. Questions concerning outside employment should be directed to the Assistant Ethics Counselor, Stephanie E. Parle, at 703/648-7422. Virginia G. Miles Deputy Bureau Ethics Counselor E-Mail Address: vmiles@usgs.gov Phone #: 703/648-7474 FAX #: 703/648-4132 Mailing Address: U.S. Geological Survey National Center, MS 603 12201 Sunrise Valley Drive Reston, VA 20192