August 7, 1998
                                         DO-98-022

MEMORANDUM

TO:       Designated Agency Ethics Officials

FROM:     Stephen D. Potts
          Director

SUBJECT:  Proposed Minor Amendments to Standards of Conduct 


     Over the past six years, the Office of Government Ethics (OGE)
has provided interpretive advice to agency ethics officials on the
application of the standards of ethical conduct (5 C.F.R.
part 2635), as specific fact patterns have arisen.  Based thereon,
we have now determined that selected provisions of the standards
should be amended, in order to codify some of that advice and
clarify regulatory meaning. 

     Therefore, at 63 Fed. Reg. 41476 - 41477 (August 4, 1998), OGE
has published proposed minor amendments to subpart B (Gifts From
Outside Sources) of the standards of conduct regulation.  The
preamble describes these changes and the need for them. 

     The amendments propose to clarify the meaning of gifts given
"because of official position" at § 2635.203(e), by emphasizing
that the regulatory intent was to restrict such gifts only where
they would not have been solicited, offered, or given had the
employee not held the status, authority or duties associated with
his Federal position.  Some had been applying the restriction too
broadly, to encompass gifts based on the mere happenstance that the
recipient was a Government employee.  

     The amendments also propose to clarify the meaning of language
in § 2635.204 that gifts accepted under one of the specified
exceptions will not be deemed to violate the 14 general principles
of ethical behavior.  The intent of this section was that
appearance concerns will not preclude use of the gift exceptions or
require an employee to reject a gift which otherwise falls within
one of the exceptions.

     Finally, the amendments propose to clarify the exception at
§ 2635.204(a) for gifts aggregating $20 or less per occasion, by
specifying that its intent was to permit gifts worth $20 or less
per source per occasion, since there may be several otherwise
prohibited sources at a single event.  

     Please see the regulatory preamble for more details regarding
these proposed changes.  Any comments must be submitted to OGE not
later than October 5, 1998.  Later this summer, OGE plans to
publish minor proposed amendments to subpart F (Seeking Other
Employment) and subpart H (Outside Activities), which will be
discussed in a separate DAEOgram at the time of publication in the
Federal Register.