also advise such persons of what remedial action must be taken. The remedial action may include the employee's divestiture of the conflicting interest, disqualification for particular assignments, reassignment, disciplinary action, or the remedies specified in § 370.735.-72(i). The Ethics Counselor may reopen the matter if he disagrees with the Ethics Administrator.

(2) If the Ethics Administrator cannot resolve the case, or if the employee disagrees with the Ethics Administrator, the matter shall be presented to the Ethics Counselor within one week together with any additional written statement the employee may wish to make, and the Ethics Counselor shall decide the case.

(3) An employee may appeal the Ethics Counselor's decision to the Board by forwarding to it within one week of such decision a statement setting forth why the employee believes the Ethics counselor's decision should be changed. A copy of such statement shall be given at the same time to the Ethics Counselor.

(4) The employee shall comply with the decision of the Ethics Administrator or Ethics Counselor except only insofar as such decision is later changed by the Ethics Counselor or the Board, as the case may be. The effectiveness of the decision of the Ethics Administrator or the Ethics Counselor shall be stayed for two working days after the employee receives notice thereof to permit the employee to request the Ethics Counselor or the Board, or any Member thereof, for a stay of the decision of the Ethics Administrator or Ethics Counselor pending the determination of a timely filed appeal. The employee may not apply for a waiver from this section under § 370.735-14. Any remedial action shall be effected in accordance with applicable laws, executive orders and Civil Service Commission or Board regulations. The Ethics Administrator, the Ethics Counselor and the Board shall normally decide each matter within one week, and the employee shall be responsible for promptly furnishing any information available to him requested by such officers.

(5) The Office of General Counsel of the Board shall be available for con

sultation with the Civil Service Commission in connection with any inquiry it may make about the holdings of any Member.

(c) The reports of financial interests and employment shall be held in the strictest confidence. Only the following persons shall have access to such a report and only for purposes of administering this part: The Ethics Administrator, Ethics Counselor, Deputy Ethics Counselor, Director of Office of Personnel and employees designated by the Director to tabulate the reports, Board Members and the employee submitting the report. When necessary in the interest of the Government, for good cause shown, the Civil Service Commission or the Board may upon written request authorize access by other government officials. In such event, the employee shall be notified in writing at least 10 days in advance of such authorized access. Except when being reviewed by authorized persons, the reports shall be stored in locked containers.

(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, educational and other institutions doing research and development or related work involving grants of money from, or contracts with, the Government are deemed to be business enterprises and are required to be included in the statement. Otherwise, information relating to the employee's connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or similar organization not conducted as a business enterprise is not required to be reported.

(f) The statements required by this section are in addition to and not in substitution for, or in derogation of, any similar requirement imposed by law, order or regulation. The submission of a statement by an employee does not permit him or any other

person to participate in a matter in which his or the other person's participation is prohibited by law, order or regulation.

[SPR-18, 32 FR 13052, Sept. 14, 1967. Redesignated and amended by SPR-141, 42 FR 60719, Nov. 28, 1977]

required to

§ 370.735-74 Employees submit statements. (a) Every employee (other than Board Members), including special Government employees and consultants and experts working under contract, shall execute and forward to the Office of Personnel for transmittal to the Ethics Administrator a Form 16 report of all financial interests in any civil aeronautics enterprise and any enterprise which is primarily a surface common carrier. Any subsequent acquisition of a financial interest in such an enterprise or carrier shall be promptly reported in accordance with § 370.735-72.

(b) The following categories of employees, including special Government employees and consultants and experts working under contracts, are determined by the Board to be within the scope of §§ 735.403 and 735.404 of the Regulations of the Civil Service Commission on Employee Responsibilities and Conduct (5 CFR Part 735) and therefore shall, in addition to the requirement in paragraph (a) of this section, submit Statements of Employment and Financial interests (Form 141):

(1) Employees in Administrative Law Judge positions.

(2) Employees in grades GS-14 and above.

(3) All other employees in positions of assistant division chief or equivalent and above at any grade or salary. (4) All contracting officers, and all persons on Members' personal staffs paid at a rate equal to or above the entrance rate for a GS-14.

(5) Heads of Bureaus and Offices shall designate to the Conflicts Administrator on or before June 15 of each year those employees below grade GS-14 whose work has a significant effect on Board action, and such employees shall also submit a Form 141 report.

Any employee within the above categories may request a waiver under § 370.735-14 from the requirement that he or she file a Form 141 report. Such waiver shall be granted if the employee's responsibilities and work do not have a significant effect on Board action.

(c) Employees not listed in paragraph (b) of this section are determined by the Board either as not being within § 735.403 of the Regulations of the Civil Service Commission on Employee Responsibilities and Conduct requiring the filing of statements of employment and financial interests, or as being within § 735.404 of such regulations and thus not required to file a statement.

(d) Board Members are subject to separate reporting requirements under section 401 of the Executive order, and are not required to file statements pursuant to this section (§ 735.404 of the Civil Service Commission's regulations (5 CFR 735.404)).

(e) In addition to all other reports, all special Government employees shall report all other employment. Such statements shall be submitted not later than the time of employment, and shall be kept current throughout the special Government employee's employment with the Board by submission of supplementary statements within 14 days after any change. These requirements may be waived or modified to the extent consistent with § 735.412 of the Civil Service Commission's regulations (5 CFR 735.412) if the employee requests a waiver in accordance with § 370.735-14. [SPR-18, 32 FR 13052, Sept. 14, 1967. Redesignated and amended by SPR-141, 42 FR 60720, Nov. 28, 1977]

Subpart G-Review of Regulations

§ 370.735-80 Review of regulations.

The Board shall on or before December 31, 1978, reexamine this part and review its experience thereunder for the purpose of determining whether modifications should be made thereto: Provided, That the Board may amend this part prior to such review if appropriate in the public interest. The Board shall appoint an appropriate

sonnel charters utilizing aircraft chartered from such direct air carriers or foreign air carriers. Nothing contained in this part shall be construed as repealing or amending any provisions of any of the Board's regulations, unless the context so requires.

[SPR-60, 37 FR 19122, Sept. 19, 1972]

§ 372.2 Definitions.

As used in this part, unless the context otherwise requires-

"Charter" means overseas military personnel charter.

"Charter operator" means overseas military personnel charter operator. "Charter participant” means member of the overseas military personnel charter group.

a

"Charter price" means the total amount of money paid by the charter participant to the charter operator for air transportation.

"Immediate family" means only the following persons: the spouse, children, parents, parents of the spouse, children of the parents, and children of the parents of the spouse of (1) military personnel on active duty with the United States Armed Forces (including Coast Guard) stationed outside the contiguous states of the United States and the District of Columbia, and (2) civilian employees of the Department of Defense who are citizens of the United States and are stationed in a foreign country, or in a U.S. territory or possession, where U.S. military personnel are stationed.

"Overseas military personnel charter" means a charter, either oneway or round-trip, limited to military personnel on active duty with the U.S. Armed Forces (including the Coast Guard), stationed outside the 48 contiguous States of the United States and the District of Columbia, and/or civilian employees of the Department of Defense who are citizens of the United States and are stationed in a foreign country, or in a U.S. territory or possession, where such U.S. military personnel are stationed, and/or the immediate families of the foregoing persons, where the following conditions are met: (a) All military personnel and civilian employees of the Department of Defense participating in

the charter are on official furlough, leave, pass, or other authorized absence from duty, and (b) the transportation is between a place in the 48 contiguous States of the United States or the District of Columbia and a place in Alaska, Hawaii, or a territory or possession of the United States, or a foreign country in which military personnel of the United States are stationed: Provided, however, That nothing contained herein shall preclude an overseas military personnel charter operator from utilizing any unused space on an aircraft chartered by it pursuant to this part for the transportation, on a free or reduced-rate basis, of such charter operator's employees, directors, and officers, and the parents and immediate families of such persons, subject to the provisions of Part 223 of this chapter.

"Overseas military personnel charter operator" means any citizen of the United States, as defined in section 101 (13) of the Federal Aviation Act (49 U.S.C. 1301(13)) authorized hereunder to engage in the formation of overseas military personnel charter groups and who complies with the provisions of this part.

"Person" means any individual, firm, association, partnership, or corporation.

[SPR-54, 37 FR 11163, June 3, 1972, as amended by SPR-69, 38 FR 14164, May 30, 1973; SPR-109, 41 FR 35158, Aug. 20, 1976]

compliance therewith, to civil penalties pursuant to the provisions of section 901(a) of the Act, or in the case of willful violation, to criminal penalties pursuant to the provisions of section 902(a) of the Act; or other lawful sanctions.

§ 372.5 Suspension or revocation of authority.

The Board reserves the power to suspend the authority of any charter operator, without hearing, if it finds that such action is necessary in order to protect the rights of the traveling public, or to revoke such authority for

cause.

Subpart B-Exemption

§ 372.10 Exemption.

Subject to the other conditions of this part, charter operators are hereby relieved from the provisions of section 401 of the Act.

Subpart C-Conditions and Limitations

§ 372.20 Requirement of operating authorization.

No person shall engage in air transportation as an overseas military personnel charter operator by organizing, providing, selling, or offering to sell, soliciting or advertising an overseas military personnel charter or charters unless there is in force an operating authorization issued by the Board pursuant to § 372.31 authorizing such person to engage in such transportation: Provided, That any person engaged in operations as an overseas military personnel charter operator on August 27, 1971, may continue so to engage and be relieved of complying with § 372.24, until such time as the Board shall pass upon an application for an operating authorization, if within 45 days after the effective date of this part such person files an application pursuant to § 372.30: And provided further, That until October 1, 1972, the passengers participating in a charter flight performed pursuant to an agreement between any such person and any direct air carrier or

foreign air carrier, which was fully executed prior to the effective date of this Part 372 and a copy of which is filed with the Board (Director, Bureau of Pricing and Domestic Aviation) no later than 14 days after the effective date of this part, may be drawn not only from the eligible classes of persons specified in § 372.2, but also from the following additional classes of persons, and the members of their immediate families; U.S. military personnel stationed anywhere in the United States; retired U.S. military personnel; and civilian employees of the Department of Defense stationed anywhere in the United States.

§ 372.21 Solicitation.

Solicitation of charter participants through advertising by charter operators shall be restricted to the following:

(a) Radio and television stations operated by the U.S. Armed Forces;

(b) Newspapers, periodicals, or other printed media disseminated and distributed primarily among military personnel or civilian employees of the Department of Defense: Provided, however, That any printed advertisement of a charter operator shall include a statement explaining that eligibility for participation in such charters is limited to military servicemen who are stationed outside of the 48 contiguous States and the District of Columbia, and/or U.S. citizen civilian DOD employees who are stationed in a foreign country, or a U.S. territory or possession, where U.S. military personnel are stationed, and their respective immediate families.

§ 372.23 Methods of competition.

No charter operator shall engage in unfair or deceptive practices or unfair methods of competition in air transportation or the sale thereof.

§ 372.24 Surety bond, depository agreement, escrow agreement.

(a) Before selling or offering to sell, soliciting or advertising any charter flight, a charter operator shall comply with one of the three following requirements:

(1) The charter operator shall furnish a surety bond in an amount not less than the maximum fare held out for charter flights proposed to be operated during each calendar month multiplied by 90 percent of the number of available seats on such flights: Provided, however, That the liability of the surety to any charter participant shall not exceed the charter operator's applicable tariff fare. Such bond shall be filed with the Board not less than 45 days prior to the commencement of the calendar month covered by the bond together with a list of flights proposed to be operated during the month showing charter price, departure dates, equipment to be used for each flight and the seating capacity: Provided, however, That the amount of the bond shall be increased if additional charter flights are proposed or may be reduced if proposed charter flights are canceled, in which event a substitute bond and amended list of proposed flights shall be filed with the Board within 10 days of the date that the charter operator adds flights or cancels flights previously proposed, but in no event later than 2 days prior to the operation of any such additional charter flights; or (2) The charter operator shall—

(i) Furnish and file with the Board a surety bond in the amount of $100,000 for the protection of the charter participants: Provided, however, That the liability of the surety to any charter participant shall not exceed the charter operator's applicable tariff fare; and

(ii) Enter into an agreement with a bank, the terms of which shall include the following: