the Office of Personnel and Security, a statement setting forth why he believes the decision of the head of the office or bureau should be reversed.

(d) If the employee accepts the initial decision of the head of the office or bureau, or if such decision is upheld by the Executive Director on review, the employee shall terminate as soon as is feasible any prohibited employment, activity or interest. Whenever an employee terminates any employment, activity or interest engaged in or held on the basis of a waiver or modification, or upon termination after denial of a request to engage in such activity, he shall so advise the head of the office or bureau by memorandum, with a copy to the Office of Personnel and Security. $370.735-15 Interpretation, advice and dissemination of information.

The Chairman will designate a counselor for the Board who will also serve as the Board's designee to the Civil Service Commission on matters covered by this part, and such number of deputy counselors for the Board's employees as may be appropriate. The Office of Personnel and Security shall distribute a copy of this part to each employee on the Board's roster within 60 days after its approval by the Civil Service Commission and thereafter to each new employee upon entrance on duty. At the same time, such Office shall advise each such employee of the persons who have been designated as counselor and deputy counselors, where and how counseling services are available, where and how access may be obtained to the statutory and other regulatory provisions cited in this part, and the manner in which financial interests and employment are to be reported pursuant to § 370.735-72. Thereafter from time to time as may be appropriate, and at least annually, such Office shall again call the attention of each employee to the regulations in this part and again advise each employee of the information heretofore specified. Subpart B-Gifts, Entertainment and

(a) The provisions of $370.735-21 shall not apply (1) in respect to obvious family and personal relationships when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors; or (2) to retirement pay or other benefits obtained by reason of prior employment where such benefits are a matter of right (e.g., free transportation privileges earned where such privileges may not be denied in the discretion of the carrier).

(b) The provisions of § 370.735-21 shall not prohibit: (1) The utilization by employees of the services offered to the public by any of the persons specified in § 370.735-21, provided that full value, as published in a carrier's tariffs, or as is customarily charged to the public, is paid therefor; (2) the carriage without charge by an air carrier, of employees engaged in inspection duties, pursuant to and in accordance with Part 224 of the Board's Economic Regulations (Part 224 of this chapter); and (3) commercial transactions between employees and banks, insurance companies and other similar institutions which may be among the persons specified in § 370.735-21 where no special treatment is afforded by the institution to the employee (for example, loans and mortgages; estate or trust relationships; or handling of personal investments, insurance policies, and other financial matters normal to the conduct of personal and family life).

(c) The provisions of $370.735-21 shall not prohibit the acceptance of the following:

(1) Invitations addressed to and approved by the Board for employees designated by the Board (including, where applicable, their wives or a member of their immediate family), to participate in ceremonial or inaugural flights, and meals, accommodations, and entertainment incidental thereto.

(2) Invitations to widely attended social, honorary or promotional functions, including luncheons, dinners,

parties or other affairs, sponsored by persons specified in § 370.735-21, or to sit at a table at such functions the expenses of which have been paid for by such persons, where persons other than Board employees and employees of the inviter have also received invitations, or where the employee participates as speaker, honored guest, or in another similar manner in the affair. (Types of functions included within this exception would be the Annual Wright Day Dinner, luncheons of the Aero Club, Aviation Club, or National Society of Industrial Associations, luncheons or dinners of the Air Force Association, Navy League, etc., Congressional Appreciation Dinners, and other social, honorary, or promotional functions relating to aeronautics, sponsored by airlines, trade and aeronautical associations or other persons having an interest in aeronautics.)

(3) When approved by the Board, reasonable transportation, meals and accommodations, in connection with a trip, made in the performance or furtherance of an employee's duties for the Board, where such trip is made at the request of, and primarily for the benefit of the person providing such services and where reimbursement from the Government is not made for any expenses paid for or provided by such person. (For example the Board might detail an employee to provide technical or other assistance to a foreign government, airline, or aeronautical association, or to engage in promotional or developmental functions.)

(4) Invitations in respect to meals and accommodations when on official business outside the continental United States, where commercial accommodations are unavailable or inappropriate, or where refusal of the offer would be otherwise inappropriate in light of all circumstances involved. (For example, Board representatives on a United States delegation to an international bilateral or multilateral conference could accept accommodations provided by the host government and could participate in the normal social functions attendant thereto.)

(5) Invitations in respect to food and refreshments of a nominal value on infrequent occasions in the ordinary course of a luncheon, dinner or other meeting, or on inspection tours or business trips out of town or abroad, or in furtherance of the promotional and developmental responsibilities of the Board and the em

ployee, provided the employee is properly in attendance, and the acceptance does not result in or create the appearance of improper conduct as specified in § 370.735-23. (For example, an employee might accept a 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.)

(6) 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) The provisions of § 370.735-21 shall not be construed as prohibiting employees from accepting payments from persons specified in that section as reimbursement for actual travel and other necessary subsistence expenses, incidental to a speech, lecture, consultation, discussion or other similar appearance at the request, and on behalf of such persons, if approved in accordance with the provisions of §§ 370.735-34-370.73536.

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

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

§ 370.735-24 Gifts to superiors.

An employee shall not solicit contributions from another employee for a gift to an employee in a superior official position. An employee in a superior official position shall not accept a gift presented as a contribution from employees receiving less salary than himself. An employee shall not make a donation as a gift to an employee in a superior official position (5 U.S.C. 113). These provisions, however, are not deemed applicable to gifts to employees retiring or leaving the employment of the Board, or to nominal gifts on occasions such as sickness, marriage, etc.

(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.

§ 370.735-33

Holding State or local government offices.

An employee shall not engage in outside employment under a State or local government, except in accordance with Part 734 of the Civil Service Commission regulations respecting holding State or local office (5 CFR Part 734).

§ 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 that is dependent 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 the 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.

(c) The Civil Service Commission, pursuant to Executive Order 9367, prohibits Federal employees from teaching in any school which holds itself out as offering courses specifically designed to prepare students for Civil Service or Foreign Service examinations or teaching any course specifically designed to train applicants for Civil Service or Foreign Service examinations or is so closely related with the subject matter of a Civil Service or Foreign Service examination that it has the effect of specifically preparing persons for such examinations. § 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, and shall contain a certification by the employee that the school does not hold itself out as offering courses specifically designed to, and the course itself is not designed to, prepare or train students for Civil Service or Foreign Service examinations.

§ 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.

(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 agreement to forego any privilege the Board employee would be entitled to as a relative of the family member.

Subpart D-Statutory Requirements § 370.735-41 Activities prohibited by

Public Law 87-849.

Public Law 87-849 (18 U.S.C. 203, 205, 207, 208, and 209), prohibits various activities, transactions and relationships of Federal employees and prescribes fines and/or imprisonment as penalties upon conviction of violation of the statute.

§ 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

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.

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.

(b) Chapter 11 of title 18, United States Code, relating to bribery, graft, and conflicts of interest, as appropriate to the employees concerned.

(c) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913).

(d) The prohibition against disloyalty and striking (5 U.S.C. 118p, 118r).

(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. 640).

(h) The prohibition against the misuse of a Government vehicle (5 U.S.C. 78(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 (5 U.S.C. 637).

(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 (The Hatch Act (5 U.S.C. 1181), and 18 U.S.C. 602, 603, 607, and 608).

(q) The prohibition against Board Members having any pecuniary interest in or owning any stock in or Bonds of any civil aeronautics enterprise, or engaging in any other business, vocation or employment. (Sec. 201(b), Federal Aviation Act, 49 U.S.C. 1321(b)).

Subpart E-Other Standards of
Conduct

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.