luncheon invitation to meet with an executive of a foreign or domestic airline from out of town, provided the meeting did not have an actual or apparent purpose of being primarily for entertainment of the employee, and there did not exist other circumstances which would make the meeting improper. Similarly, on business or inspection trips out of town or abroad, employees would not be precluded from accepting normal but limited social amenities offered by airline representatives in attendance, where the circumstances made it clear that there was no attempt to cultivate favoritism on the part of the employee, and the appearance of improper conduct would not otherwise be present.)

(5) Such other invitations as shall from time to time be authorized in advance by the Board in specific situations.

(d) The provisions of § 370.735-21 shall not prohibit the acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars and other items of nominal intrinsic value.

(e) Neither this section nor § 370.73531 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made, if approved in accordance with §§ 370.735-34-370.735-36, inclusive. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits; nor does it allow an employee to be reimbursed for travel on official business under Board orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General, dated March 7, 1967.

casion such as marriage, illness, or retirement.

§ 370.735-24 Gifts from foreign govern

ments.

An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and Public Law 89-673, 80 Stat. 952. Subpart C-Outside Employment and Other Activity

§ 370.735-31 General prohibition.

(a) An employee shall not engage in outside employment unless approval is obtained pursuant to § 370.735-35.

(b) In connection with the presentation or publication of unofficial speeches, lectures or writings on matters dealing with aviation or related subjects, employees shall adhere to the policies, and obtain required clearances, as set forth in Part 443 of the CAB Manual.

(c) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest; or

(2) Outside activity which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner.

(3) Outside activity which brings, or tends to bring discredit upon, or causes unfavorable and reasonable criticism of the Government or the Board.

(4) Outside activity which involves use or exploitation of the employee's official role, position, authority, access to limited information, or use of Government resources, such as personnel, space, equipment, supplies and communication or transportation facilities.

§ 370.735-32 Supplementing Government salary prohibited.

An employee, other than a special Government employee, shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government (18 U.S.C. 209).

§ 370.735-34 Teaching, lecturing, and writing.

(a) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, the Executive order, Part 735 of the Civil Service Commission's regulations (5 CFR Part 735), or this part. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing, including teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of the Civil Service Commission or Board of Examiners for the Foreign Service, that depends on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the Chairman or the Executive Director gives written authorization for use of nonpublic information on the basis that the use is in the public interest.

(b) Board Members, as Presidential appointees covered by section 401(a) of the Executive order, are specifically precluded by § 735.203 (c) of the Civil Service Commission's regulations (5 CFR 735.203 (c)) from receiving compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance the subject matter of which is devoted substantially to the responsibilities, programs, or operations of his agency, or which draws substantially on official data or ideas which have not become part of the body of public information.

[SPR-18, 32 F.R. 13052, Sept. 14, 1967, as amended by SPR-25, 33 F.R. 9480, June 28, 1968]

§ 370.735-35 Approval of outside employment.

Requests for permission to engage in outside employment will be processed in accordance with § 370.735-14, and shall state the days and hours of work or time involved, and shall identify the employer and the nature of the business. Requests to engage in teaching shall include a description of the course to be taught.

[SPR-25, 33 F.R. 9480, June 28, 1968]

§ 370.735-36 Exceptions.

Sections 370.735-31-370.735-34 do not preclude an employee (including Board Members) from:

(a) Receipt of bona fide reimbursement, unless prohibited by law, for actual expenses for travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, an employee may not be reimbursed, and payment may not be made on his behalf, for excessive personal living expenses, gifts, entertainments or other personal benefits; nor may an employee be reimbursed for travel on official business under Board orders when reimbursement is proscribed by Decision B128527 of the Comptroller General, dated March 7, 1967.

(b) Participation in the activities of national or State political parties not proscribed by law (see Part 271 of the CAB Manual for prohibitions against engagement in certain political activities).

(c) Participation in the affairs of or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization.

(d) In respect to special Government employees, engaging in outside employment and receiving compensation therefor, to the extent reported and approved in accordance with §§ 370.735-72 and 370.735-73(c), and not otherwise prohibited by statute or regulation.

§ 370.735-37 Employment of family members in aeronautical and related enterprises.

(a) No individual will be employed or retained in employment by the Board if a member of the employee's immediate family (blood relations who are residents of an employee's household) is employed by an air carrier, a person or firm (legal, accounting, public relations, advertising, etc.) representing an air carrier, or an aviation trade association.

(b) An employee may request a waiver, modification or postponement of the implementation of this prohibition, in accordance with the procedures of § 370.735-14, on grounds of undue hardship to himself or the family member involved, where it is clear that the employment of such family member will not tend to influence the judgment or action of the employee on matters coming before him, will not encourage premature or improper disclosure of information to the family member, or otherwise create any form of conflict of interest. The request must contain an

§ 370.735-42

Limited waiver of the prohibition against representation.

An employee seeking to represent his parents, spouse, child, or a person or estate he serves as fiduciary, may request a waiver of the prohibitions against representing another in a matter in which the United States has a direct and substantial interest as set forth in 18 U.S.C. 203, 205(1) or 205(2). The request may be granted provided the employee has not participated personally and substantially in his official capacity in the matter, and provided further, the matter is not a subject of his official responsibility. Request should be made in accordance with the procedures set forth in § 370.735-14.

§ 370.735-43 Waiver of the prohibition against acts affecting financial inter

ests.

Public Law 87-849 (18 U.S.C. 208) specifically prohibits an employee from participating personally and substantially in official business which affects a financial interest of his own, or of his spouse, minor child, partner, organization in which he is an official or employee, or of any person or organization with whom he is negotiating or has an arrangement concerning prospective employment. An employee who believes his interest is not substantial enough to affect the integrity of his services may request that the prohibition be waived in accordance with the procedures set forth in § 370.735-14.

§ 370.735-44 Other statutory require

ments.

Each employee shall acquaint himself with the following provisions of law:

(a) The "Code of Ethics for Government Service," House Concurrent Resolution 175, 85th Congress, 2d session, 72 Stat. B12.

(d) The prohibition against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918).

(e) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

(f) The prohibitions against (1) the disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783), and (2) the disclosure of confidential information (18 U.S.C. 1905, 49 U.S.C. 1472(f)).

(g) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352).

(h) The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a (c)).

(i) The prohibition against the misuse of the franking privilege (18 U.S.C. 1719).

(j) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).

(k) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001).

(1) The prohibition against mutilating or destroying a public record (18 U.S.C. 2071).

(m) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

(n) The prohibitions against (1) embezzlement of Government money or property (18 U.S.C. 641); (2) failing to account for public money (18 U.S.C. 643); and (3) embezzlement of the money or property of another person in the possession of an employee by reason of his employment (18 U.S.C. 654).

(0) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285).

(p) The prohibition against proscribed political activities contained in Subchapter III of Chapter 73 of Title 5, United States Code, and in 18 U.S.C. 602, 603, 607, and 608.

(q) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219).

An employee shall not directly or indirectly use, or allow the use of, Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him. § 370.735-52 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 370.735-34, directly or indirectly use, or allow the use of, official information obtained through or in connection with his Government employment which has not been made available to the general public.

An employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. For the purpose of this paragraph, a “just financial obligation" means one acknowledged by the employee or reduced to judgment by a court, and "in a proper and timely manner" means in a manner which the agency determines does not, under the circumstances, reflect adversely on the Government as his employer. In the event of dispute between an employee and an alleged creditor, this section does not require the Board to determine the validity or amount of the disputed debt. Part 275 of the CAB Manual sets forth Board procedure with respect to employee indebtedness.

§ 370.735-54 Gambling, betting, and lotteries.

An employee shall not participate while on Government-owned or leased property or while on duty for the Government, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling

or purchasing a numbers slip or ticket. However, this section does not preclude activities:

(a) Necessitated by an employee's law enforcement duties; or

(b) Under section 3 of Executive Order 10927 and similar agency-approved activities.

§ 370.735-55 General conduct prejudicial to the Government.

An employe shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Government. An employee shall avoid any action, whether or not specifically prohibited by this Part which might result in, or create the appearance of:

(a) Using public office for private gain;

(b) Giving preferential treatment to any person;

(c) Impeding Government efficiency or economy;

(d) Losing complete independence or impartiality;

(e) Making a Government decision outside official channels; or

(f) Affecting adversely the confidence of the public in the integrity of the Government.

Subpart F-Additional Requirements for Special Government Employees § 370.735-61 Use of Government employment.

A special Government employee shall not use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business, or financial ties. § 370.735-62 Use of inside information.

A special Government employee shall not use inside information obtained as a result of his Government employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he has family, business, or financial ties. For the purpose of this paragraph, "inside information" means information obtained under Government authority which has not become part of the body of public information.

A special Government employee shall not use his Government employment to coerce, or give the appearance of coercing, a person to provide financial benefit to himself or another person, particularly one with whom he has family, business, or financial ties.

Subpart G-Financial Interests

§ 370.735-71 General prohibition.

(a) No employee (including his spouse, minor children, or other dependents) shall have any pecuniary interest in or own any stock in or bonds of any civil aeronautics enterprise (49 U.S.C. 1321(b)), except that employees other than Board Members may, in accordance with Part 274 of the CAB Manual, obtain a waiver, modification or postponement of the implementation of this prohibition, if the prohibition would impose an undue hardship and is not required in the public interest.

(b) An employee shall not:

(1) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his Government duties and responsibilities;

or

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment; however

(3) This section does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government, so long as it is not prohibited by law, Executive order, this part, or Part 274 of the CAB Manual.

(c) Limitations on the representation activities of former Board employees and partners of present Board employees, including the use of confidential information are set forth in §§ 300.13-300.19 of the Board's Procedural Regulations (§§ 300.13-300.19 of this chapter).

§ 370.735-72 Reporting financial interests and employment.

(a) (1) Employees in the categories listed in § 370.735-73(a) shall submit to the Director of Personnel and Security within 90 days of date of issuance of this part (or with respect to employees entering on duty after the issuance of this part or coming within the purview of § 370.735-73(a), within 30 days there

after) a statement of their financial interests and employment. All special Government employees shall submit their statements of financial interests and employment in accordance with § 370.735-73(c). A supplementary statement shall be submitted as of June 30 of each year prior to July 31. Notwithstanding the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of the conflicts-of-interest provisions of section 208 of Title 18, United States Code.

(2) The interest of an employee's immediate family (blood relations who are residents of the employee's household) is considered to be an interest of the employee.

(b) The Director of Personnel and Security shall review these statements for the purpose of disclosing any conflict of interest or apparent conflict of interest. If such is found, the employee shall be given an opportunity to explain the conflict, or apparent conflict. If the explanation does not resolve the conflict, the Director of Personnel and Security shall report the circumstances, together with his recommendation for appropriate remedial action, to the Chairman through the Counselor for the Board. Appropriate remedial action includes, but is not limited to, divestiture by the employee of his conflicting interest, disqualification for particular assignments, reassignment, or disciplinary action. Any remedial action shall be effected in accordance with applicable laws, Executive orders, and Civil Service Commission or Board regulations.

(c) The reports of financial interests and employment shall be held in the strictest confidence. No access shall be allowed to, or information allowed to be disclosed from, a statement except to carry out the purpose of this Part, or except as the Civil Service Commission or the Chairman may determine for good cause shown.

(d) If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee is responsible for requesting that other person to submit the information on his behalf.

(e) For the purpose of this section,