(g) Pending the outcome of an "Appeal of Essential Service Determination," the essential air service for the eligible point involved shall be the level set by the determination issued under § 325.5.

[PR-213, 44 FR 52665, Sept. 7, 1979, as amended by PR-227, 45 FR 79752, Dec. 2, 1980]

§ 325.8 Informal conferences.

(a) If an appeal raises an issue that cannot be satisfactorily resolved on the basis of written submissions, the Board may order that an informal conference be held.

(b) The informal conference will be conducted by a Board Member or a senior Board employee designated by the Board.

(c) Any interested person may attend the informal conference.

§ 325.9 Oral arguments.

If some appeals raise issues common to several communities so that expression of diverse viewpoints on these issues would help the Board dispose of them, the Board may invite the parties to participate in an oral argument at its offices in Washington, D.C.

§ 325.10 Modification of the designated level of essential air service.

(a) Any person may file with the Board a petition titled "Petition for Modification of Essential Air Service Level," asking to modify the essential air service level at a point.

(b) The petition shall identify the point affected, and specifically state the reasons why the petitioner believes the designated essential level is inadequate. It should contain any facts and arguments that support its requests, and describe the level of essential air service that should be substituted.

(c) Any person may, within 30 days after the filing of a petition for modification, file an answer to that petition titled "Answer to Petition for Modification."

(d) After review, the Board may seek more information and the procedures of §§ 325.5 and 325.7 will be followed.

§ 325.11 Form of documents.

All documents filed under this part shall be filed in the Docket Section, Civil Aeronautics Board, Washington, D.C. 20428, and on their front page state:

(a) The title of the document;

(b) The name of the affected community;

(c) The name, address, and telephone number of a person who can be contacted for further information concerning the subject of the document; and

(d) In the case of a responsive document, the docket number of the document to which it responds.

§ 325.12 Service of documents.

Any person, except one filing individually as a consumer, who files a document under this part, including responses to the questionnaire, shall serve that document upon those listed in § 325.4(a) of this part and upon the following:

(a) The governor of the State in which the eligible point is located;

(b) Each air carrier providing scheduled service to the affected eligible point;

(c) In the case of a responsive document, the one who filed the document to which it responds;

(d) The U.S. Department of Transportation, Office of Air Transportation-Office of the Secretary, Room 10304, 400 7th Street, N.W., Washington, D.C. 20590; and

(e) The U.S. Postal Service, Assistant General Counsel, Transportation Division, Law Department, Washington, D.C. 20260.

§ 325.13 Environmental evaluations and energy information not required.

Notwithstanding any provision of Part 312 or Part 313 of this chapter, a person filing a petition or appeal under this part is not required to file an environmental evaluation or energy information with the application.

§ 325.14 Conformity with Subpart A of Part 302.

Except where they are inconsistent, the provisions of Subpart A of Part

370.735-34 Teaching, lecturing, and writing.

370.735-35 Approval of outside employment.

370.735-36 Exceptions.

370.735-37 Employment of family members in aeronautical and related enterprises. 370.735-38 Future employment.

Sec.

370.735-56 Influence or coercion.

Subpart F-Financial Interests

370.735-71 General prohibition. 370.735-72 Civil aeronautics enterprises. 370.735-73 Confidential reports of financial interests and employment.

370.735-74 Employees required to submit statements.

Subpart G-Review of Regulations 370.735-80 Review of regulations.

AUTHORITY: E.O. 11222, 30 FR 6469, 3 CFR, 1965 Supp.; 5 CFR, 735.101 et seq.; secs. 201, 202, 204 of the Federal Aviation Act, 72 Stat. 741, 742, 743; 49 U.S.C. 1321, 1322, 1324.

SOURCE: SPR-18, 32 FR 13052, Sept. 14, 1967, unless otherwise noted.

NOMENCLATURE CHANGES: ER-756 37 FR 18909, Sept. 16, 1972.

Subpart A-General

§ 370.735-11 Purpose.

This part sets forth the standards of ethical conduct required of all Board employees, in implementation of Executive Order 11222, May 8, 1965 (30 F.R. 6469), and Part 735 of the Civil Service Commission regulations adopted pursuant thereto (5 CFR Part 735). It also contains references to the several applicable statutes governing employee conduct, particularly Public Law 87-849 (76 Stat. 1119, 18 U.S.C. 201 et. seq.), and the "Code of Ethics for Government Service." House Concurrent Resolution 175, 85th Congress, 2d session (72 Stat. B12).

§ 370.735-12 Definitions.

As used in this part, unless the context otherwise requires

(a) "Employee" means Board members and employees, including special Government employees as defined in

18 U.S.C. 202 and members of the personal staffs of Board Members.

(b) "Executive order" means Executive Order 11222 of May 8, 1965 (30 F.R. 6469).

(c) "Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other organization or institution.

(d) "Civil aeronautics enterprise" means any enterprise primarily civil aeronautical in nature.

(1) In determining whether an enterprise is primarily civil aeronautical in nature, the Ethics Counselor or other authority shall consider, without excluding other relevant factors, (i) the sales, investment, profit, and managerial effort directed to the civil aeronautical aspects of the enterprise compared to the other aspects of its business, (ii) the public image of the enterprise, (iii) the degree of the Board's regulation and oversight of such enterprise, and (iv) the degree to which the economic interests of the enterprise might be affected by Board action.

(2) Excluded from "civil aeronautics enterprises" shall be (i) businesses engaged in manufacturing products essentially non-aeronautical in nature even though some part of their production is used in aviation; (ii) investment companies, unless their names or portfolios suggest that they are engaged primarily in holding financial interests in civil aeronautical enterprises; and iii) aeronautical entities exclusively military in nature.

(e) "Financial interests" includes stocks, bonds, other forms of securities or indebtedness and other holdings or interests which produce (or may produce) a monetary or other material gain to their holder. A person shall be deemed to hold a financial interest if he owns it legally or beneficially or in a representative or fiduciary capacity.

'18 U.S.C. 202 defines a "special Government employee" as including an officer or employee of any independent agency of the United States who is retained, designated, appointed, or employed to perform with or without compensation, for not to exceed 130 days during any period of 365 consecutive days, temporary duties either on a full-time or intermittent basis.

[SPR-18, 32 FR 13052, Sept. 14, 1967, as amended by SPR-141, 42 FR 60715, Nov. 28, 1977]

§ 370.735-13 Policy and enforcement.

(a) The maintenance of unusually high standards of honesty, integrity, impartiality, and conduct by Government employees is essential to assure the proper performance of the Government business and the maintenance of confidence by citizens in their Government. In a regulatory agency such as the Civil Aeronautics Board, whose actions affect the safety and financial interest of a large number of persons (the users of air transportation as well as the suppliers of the service), it is particularly important that every employee be completely impartial, honest and above suspicion of improper conduct. Accordingly, the Board requires that its employees adhere strictly to the highest standard of ethical conduct in all their social, business, political and other off-thejob activities, relationships and interests as well as in their official actions. All Board employees shall exercise their informed judgement to avoid situations which might result in actual or apparent misconduct or conflicts of interest.

(b) Failure to adhere to the requirements of the regulations in this part, including any failure to make a report or submit accurate and complete information required by this part, or the disclosure of information in contravention of § 370.735-52, may constitute cause for disciplinary action. Non-compliance with a final decision of the Board, the Ethics Counselor, the Deputy Ethics Counselor, or the Ethics Administrator may also constitute cause for disciplinary action. Such disciplinary action may in appropriate cases include removal. Any such administrative disciplinary action may be in addition to any penalty prescribed by law.

[SPR-141, 42 FR 60715 Nov. 28, 1977]

§ 370.735-14 Procedure for waiver or permission.

Unless a different procedure is specifically prescribed, requests for a waiver or special permission with re

spect to matters relating to this part shall be submitted as follows:

(a) Promptly upon the employee's discovery of a problem which in his judgment requires a waiver the employee shall forward to the head of the bureau or office a statement in triplicate setting forth, specifically and in detail, the facts and circumstances surrounding the matter and describing the relief requested. A copy of such statement shall also be sent to the Ethics Counselor.

in

(b) In determining whether the requested relief is permissible, the bureau or office head shall consider whether a denial of the requested relief would cause undue hardship to the employee and would not further the public interest. If the request concerns an employee's financial interests the bureau or office head shall also consider the factors set forth § 370.735-72(f). The bureau or office head's decision, which shall normally be made within one week of receipt of the employee's request, shall be entered on each copy of the employee's statement. The bureau or office head shall retain the original copy of the statement, forward one copy to the Ethics Counselor for review, and return the remaining copy to the employee. If the Ethics Counselor, who normally will act within a week, disagrees with the determination of the bureau or office head, the bureau or office head and the employee shall be promptly notified and the matter shall automatically be submitted on the following day to the Board, which normally shall decide the matter within a week. In this situation, no decision will become effective except that of the Board. If, however, the Ethics Counselor agrees with the bureau or office head to deny the request, the employee shall be so notified and the effectiveness of the decision shall be stayed for two working days after notification of the employee of the Ethics Counselor's agreement to permit the employee to request the bureau or office head or, if necessary, the Board, or any Member thereof, for a stay of the decision pending the determination of a timely appeal to the Board.

(c) An employee whose request for a waiver is denied may appeal to the

Board by forwarding to it within one week after receipt of notification from the Ethics Counselor of agreement with the decision of the bureau or office head a statement setting forth why the employee believes the decision should be changed. Copies of such statement shall be given at the same time to the head of the employee's office or bureau and the Ethics Counselor. The Board shall normally decide the appeal within one week and if such decision is upheld by the Board on appeal, the employee shall terminate as soon as ordered any prohibited employment, activity or interest.

(d)(1) Whenever an employee terminates any employment, activity, or interest engaged in or held on the basis of a waiver or upon termination after denial of a request to engage in such activity, he shall immediately SO advise the head of the office or bureau by memorandum, with a copy to the Ethics Counselor.

(2) Whenever an employee makes any significant change in the nature or extent of the outside employment which the employee was granted permission to engage in, the employee shall promptly file a new application in accordance with this section.

(e) Insofar as the request for a waiver is filed by a Board Member and affects any matter other than the financial interests of the Board Member, the decision of the Ethics Counselor shall be reviewed by the full Board as a matter of course and shall not become effective until such Board ruling is made. Matters affecting the financial interests of a Board Member shall be handled by the Civil Service Commission.

[SPR-141, 42 FR 60716, Nov. 28, 1977]