[Code of Federal Regulations]
[Title 5, Volume 3, Parts 1200 to end]
[Revised as of January 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR2634.904]

[Page 528-530]
                         CHAPTER XVI--OFFICE OF
                            GOVERNMENT ETHICS
          Subpart I--Confidential Financial Disclosure Reports
Sec. 2634.904  Confidential filer defined.

    The term confidential filer includes:
    (a) Each officer or employee in the executive branch whose position 
is classified at GS-15 or below of the General Schedule prescribed by 5 
U.S.C. 5332, or the rate of basic pay for which is fixed, other than 
under the General Schedule, at a rate which is less than 120% of the 
minimum rate of basic pay

[[Page 529]]

for GS-15 of the General Schedule; each officer or employee of the 
United States Postal Service or Postal Rate Commission whose basic rate 
of pay is less than 120% of the minimum rate of basic pay for GS-15 of 
the General Schedule; each member of a uniformed service whose pay grade 
is less than O-7 under 37 U.S.C. 201; and each officer or employee in 
any other position determined by the designated agency ethics official 
to be of equal classification; if:
    (1) The agency concludes that the duties and responsibilities of the 
employee's position require that employee to participate personally and 
substantially (as defined in Sec. 2635.402(b)(4) of this chapter) 
through decision or the exercise of significant judgment, in taking a 
Government action regarding:
    (i) Contracting or procurement;
    (ii) Administering or monitoring grants, subsidies, licenses, or 
other federally conferred financial or operational benefits;
    (iii) Regulating or auditing any non-Federal entity; or
    (iv) Other activities in which the final decision or action will 
have a direct and substantial economic effect on the interests of any 
non-Federal entity; or
    (2) The agency concludes that the duties and responsibilities of the 
employee's position require the employee to file such a report to avoid 
involvement in a real or apparent conflict of interest, and to carry out 
the purposes behind any statute, Executive order, rule, or regulation 
applicable to or administered by that employee. Positions which might be 
subject to a reporting requirement under this subparagraph include those 
with duties which involve investigating or prosecuting violations of 
criminal or civil law.

    Example 1. A contracting officer drafts the requests for proposals 
for data processing equipment of significant value which is to be 
purchased by his agency. He works with substantial independence of 
action. The contracting officer should be required to file a 
confidential financial disclosure report.
    Example 2. An agency environmental engineer inspects a manufacturing 
plant to ascertain whether the plant complies with a permit to release a 
certain effluent into a nearby stream. Any violation of the permit 
standards may result in civil penalties for the plant, and in criminal 
penalties for the plant's management based upon any action which they 
took to create the violation. If the agency engineer determines that the 
plant does not meet the permit requirements, he can require the plant to 
terminate release of the effluent until the plant satisfies the permit 
standards. Because the engineer exercises substantial discretion in 
regulating the plant's activities, and because his final decisions will 
have a substantial economic effect on the plant's interests, the 
engineer should be required to file a confidential financial disclosure 

    (b) Unless required to file public financial disclosure reports by 
subpart B of this part, all executive branch special Government 
employees as defined in 18 U.S.C 202(a) and Sec. 2634.105(s), including 
those who serve on advisory committees. The term special Government 
employees does not include an advisory committee member who serves only 
as a representative of an industry or other outside entity or who is 
already a Federal employee.

    Example 1. A consultant to an agency periodically advises the agency 
regarding important foreign policy matters. The consultant must file a 
confidential report if he is retained as a special Government employee 
and not an independent contractor.
    Example 2. An advisory committee member (who is not a private group 
representative) attends four committee meetings every year to provide 
advice to an agency about pharmaceutical matters. No compensation is 
received by the committee member, other than travel expenses. The 
advisory committee member must file a confidential disclosure report, 
since she is a special Government employee.

    (c) Each public filer referred to in Sec. 2634.202 on public 
disclosure who is required by agency regulations issued in accordance 
with Sec. 2634.907(b) of this subpart to file a supplemental 
confidential financial disclosure report which contains information that 
is more extensive than the information required in the reporting 
individual's public financial disclosure report under this part.
    (d) Any employee who, notwithstanding his exclusion from the public 
financial reporting requirements of this part by virtue of a 

[[Page 530]]

under Sec. 2634.203, is covered by the criteria of paragraph (a) of this 

[57 FR 11826, Apr. 7, 1992, as amended at 63 FR 69992, Dec. 18, 1998; 64 
FR 2422, Jan. 14, 1999]