49 C.F.R. PART 99—EMPLOYEE RESPONSIBILITIES AND CONDUCT
Title 49 - Transportation
Authority: 49 U.S.C. 322; E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306.
Source: Amdt. 99–10, 42 FR 3119, Jan. 14, 1977, unless otherwise noted.
Employees of the Department of Transportation are subject to the executive branch-wide Standards of Ethical Conduct at 5 CFR part 2635, the Department of Transportation regulations at 5 CFR part 6001 which supplement the executive branch-wide standards and the executive branch-wide financial disclosure regulations at 5 CFR part 2634. [61 FR 39904, July 31, 1996] The provisions of this subpart apply only to employees who terminated government service before January 1, 1991. [58 FR 7995, Feb. 11, 1993] The duties and obligations of a Government employee (or a special Government employee) do not end when government service terminates by retirement, resignation, or for any other reason. In fact the U.S. Code sets forth specific criminal penalties for certain activities by former Government employees. To summarize broadly, section 207 of title 18, U.S. Code, prohibits a former Government employee from acting as agent or attorney in various types of proceedings and matters on behalf of a non-Government party when the employee was involved in the subject matter while working for the Government. The duration and nature of the prohibitions depend in part on the depth of the employee's involvement in the matter while in Government service. Section 208 of the same title relates to activities performed while a Government employee that benefit an employee's prospective private employer. All Government employees and special Government employees should become familiar with the provisions of the two statutory sections cited, which have been made a part of this regulation as appendix E, so that they will be aware of the restrictions which might affect them upon their termination from the Government service. I. (a) Pursuant to the authority of section 208(b) of title 18, United States Code, the following are exempted from the prohibitions of section 208(a) of title 18, United States Code, because they are too remote or too inconsequential to affect the integrity of an employee's services in any matter in which he may act in his governmental capacity. (1) Any holding in a widely held mutual fund, or regulated investment company, which does not specialize in an industry in which the possibility of conflict arise. (2) Continued participation in a bona fide pension, retirement, group life, health, or accident insurance plan or other employee welfare or benefit plan that is maintained by a business or nonprofit organization by which the employee was formerly employed, to the extent that the employee's rights in the plans are vested and require no additional services by him or further payments to the plans by the organization with respect to the services of the employee. In addition, to the extent that the welfare or benefit plan is a profit sharing or stock bonus plan, this exemption does not apply and the procedures prescribed in §99.735–15c (c) through (e) will apply to the interest of that employee in the plan. (3) Participation in an air carrier frequent flyers or substantially similar program that is available to the general public on the same terms and conditions and involves no direct financial interest in the carrier, such as stockholdings or similar types of investment interests. [Amdt.99–10, 42 FR 3119, Jan. 14, 1977, as amended by Amdt. 99–14, 53 FR 16414, May 9, 1988] Note: This appendix applies only to employees who terminated government service before January 1, 1991. §207 Disqualification of former officers and employees in matters connected with former duties or offical responsibilities; disqualification of partners. (a) Whoever, having been an officer or employee of the executive branch of the United States Government, of any independent agency of the United States, or of the District of Columbia, including a special Government employee, after his employment has ceased, knowingly acts as agent or attorney for anyone other than the United States in connection with any judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter involving a specific party or parties in which the United States is a party or has a direct and substantial interest and in which he participated personally and substantially as an officer or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, while so employed, or (b) Whoever, having been so employed, within one year after his employment has ceased, appears personally before any court or department or agency of the Government as agent, or attorney for, anyone other than the United States in connection with any proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter involving a specific party or parties in which the United States is a party or directly and substantially interested, and which was under his official responsibility as an officer or employee of the Government at any time within a period of one year prior to the termination of such responsibility: Shall be fined not more than $10,000 or imprisoned for not more than two years, or both: Provided, That nothing in subsection (a) or (b) prevents a former officer or employee, including a former special Government employee, with outstanding scientific or technological qualifications from acting as attorney or agent or appearing personally in connection with a particular matter in a scientific or technological field if the head of the department or agency concerned with the matter shall make a certification in writing, published in the (c) Whoever, being a partner of an officer or employee of the executive branch of the United States Government, of any independent agency of the United States, or of the District of Columbia, including a special Government employee, acts as agent or attorney for anyone other than the United States, in connection with any judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which the United States is a party or has a direct and substantial interest and in which such officer or employee of the Government or special Government employee participates or has participated personally and substantially as a Government employee through decision, approval, disapproval, recommendation, the rendering of advice, investigation or otherwise, or which is the subject of his official responsibility: Shall be fined not more than $5,000, or imprisoned not more than one year, or both. A partner of a present or former officer or employee of the executive branch of the United States Government, of any independent agency of the United States, or of the District of Columbia or of a present or former special Government employee shall as such be subject to the provisions of sections 203, 205, and 207 of this title only as expressly provided in subsection (c) of this section. (Added Pub. L. 87–349, section 1(a), Oct. 23, 1962, 76 Stat. 1123.) §203 Acts affecting a personal financial interest. (a) Except as permitted by subsection (b) hereof, whoever, being an officer or employee of the executive branch of the United States Government, of any independent agency of the United States, or of the District of Columbia, including a special Government employee, participates personally and substantially as a Government officer or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in a judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which, to his knowledge, he, his spouse, minor child, partner, organization in which he is serving as officer, director, trustee, partner or employee, or any person or organization with whom he is negotiating or has any arrangement concerning prospective employment, has a financial interest: Shall be fined not more than $10,000, or imprisoned not more than two years, or both. (b) Subsection (a) hereof shall not apply (1) if the officer or employee first advises the Government official responsible for appointment to his position of the nature and circumstances of the judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter and makes full disclosure of the financial interest and receives in advance a written determination made by such official that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from such officer or employee, or (2) if, by general rule or regulation published in the New 18 U.S.C. 208. This section forbids certain actions by an officer or employee of the Government in his role as a servant or representative of the Government. Its thrust is therefore to be distinguished from that of sections 203 and 205 which forbid certain actions in his capacity as a representative of persons outside the Government. Subsection (a) in substance requires an officer or employee of the executive branch, an independent agency or the District of Columbia, including a special Government employee, to refrain from participating as such in any matter in which, to his knowledge, he, his spouse, minor child or partner has a financial interest. He must also remove himself from a matter in which a business or nonprofit organization with which he is connected or is seeking employment has a financial interest. Subsection (b) permits the agency of an officer or employee to grant him an ad hoc exemption from subsection (a) if the outside financial interest in a matter is deemed not substantial enough to have an effect on the integrity of his services. Financial interests of this kind may also be made nondisqualifying by a general regulation published in the Section 208 is similar in purpose to the former 18 U.S.C. 434 but prohibits a greater variety of conduct than the “transaction of business with * * * [a] business entity” to which the prohibition of section 434 was limited. In addition, the provision in section 208 including the interests of a spouse and others is new, as is the provision authorizing exemptions for insignificant interest. [Amdt. 99-10, 42 FR 3119, Jan. 14, 1977, as amended by 58 FR 7995, Feb. 11, 1993] Subpart A—General Sec. 1 Purpose and policy. 3 Definitions. 5 Applicability. Subpart B—Ethical and Other Conduct and Responsibilities of Employees 7 General. 9 Gifts, entertainment, and favors. 11 Outside employment and other activities. 13 Financial interests. 15 Conflicts of interest. 17 Disqualification arising from personal financial interests. 19 Use of Association property or official title. 21 Misuse of information. 23 Indebtedness. 25 Miscellaneous provisions. Subpart C—Statements of Employment and Financial Interest 31 Employees required to submit statement. 33 Time and place for submission of employee statements. 35 Supplementary statements. 37 Committee on Commerce, Information not known by employee. 39 Information not required. 41 Confidentiality of employee's statement. 43 Interpretation and advisory service. Subpart D—Disqualification of Former Employees in Matters Connected with Former Duties or Official Responsibilities; Disqualification of Partners 51 Matters in which employee participated personally and substantially. 53 Matters under employee's official responsibility. 55 Employee with outstanding scientific or technological qualifications. 57 Partner of employee. Authority: Sec. 202(a)(5)(2) of the Regional Rail Reorganization Act of 1973 (Pub. L. 93–236).
Source: 39 FR 3825, Jan. 30, 1974.
Subpart A—General (b) The absence of a specific published standard of conduct covering an act tending to discredit an employee of the Association does not mean that the act is condoned, is permissible, or would not call for and result in corrective or disciplinary action. (c) Personnel of the Association shall observe standards of conduct that will reflect credit on the Association. “Association” means the United States Railway Association established by Pub. L. 93–236. “Chairman” means the Chairman of the Board of Directors of the Association. “Employee” means an officer or employee of the Association. “General Counsel” means the General Counsel of the Association, or his designee. “Includes” means “includes but is not limited to.” “May” is used in a permissive sense to state authority or permission to do the act prescribed, and the words “a person may not * * *” mean that a person is not required, authorized, or permitted to do the act prescribed. “Shall” is used in an imperative sense. Subpart B—Ethical and Other Conduct and Responsibilities of Employees (1) Using his Association office for private gain; (2) Giving preferential treatment to any person; (3) Impeding the efficiency or economy of the Association; (4) Losing complete independence or impartiality; (5) Making an Association decision outside of official channels; or (6) Affecting adversely the confidence of the public in the integrity of the Association. (b) An employee may not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or any conduct prejudicial to the integrity of the Association. (1) Has, or is seeking to obtain, contractual or other business or financial relationships with the Association. (2) Has interests which may be substantially affected by the performance or nonperformance of that employee's official duties. (b) Notwithstanding paragraph (a) of this section, an employee may: (1) Accept a gift, gratuity, favor, entertainment, loan, or other thing of value when the circumstances make it clear that an obvious family relationship rather than the business of the persons concerned is the motivating factor; (2) Accept food or refreshment of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour if the employee is properly in attendance; (3) Accept unsolicited advertising or promotional material such as pens, pencils, note pads, calendars, or other items of nominal intrinsic value; or (4) Accept an invitation addressed to the Association, when approved by the General Counsel, to participate in an inaugural trip or similar ceremonial event related to transportation, and accept food, lodging, and entertainment incident thereto. (c) An employee may not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself. However, this paragraph does not prohibit a voluntary gift of nominal value or a donation in a nominal amount made on a special occasion such as marriage, illness, retirement, or transfer. (1) Acceptance of a fee, compensation, gift, payment of expenses, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, a conflict of interest; and (2) Outside employment which tends to impair his mental or physical capacity to perform his duties and responsibilities of his employment with the Association in an acceptable manner. (b) An employee may not receive any salary or anything of monetary value from a private source as compensation for his services to the Association. (c) This section does not preclude an employee from participating in the affairs of, or accepting an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, or fraternal organization, a nonprofit educational or recreational organization, or a public service or civic organization. (b) The fact that an employee is on leave of absence from employment with or has served as an attorney or consultant to, a railroad, or a company engaged in the manufacture, construction, or supply of railroad facilities and equipment, or a creditor of a railroad, shall not, of itself, be deemed to be a financial interest conflicting with his Association duties or responsibilities. This provision does not affect the obligation of such an employee to submit a statement of employment and financial interest as required by section 31(a)(1). (c) The fact that an employee owns shares of stock, corporate bonds, or other corporate securities in any single railroad, or a company engaged in the manufacture, construction or supply of railroad facilities and equipment, or a creditor of a railroad, having a current aggregate market value of $10,000 or more, or an option to purchase such securities, shall not, in itself, be deemed to be a financial interest conflicting with his Association duties or responsibilities. Such ownership must, however, be reported in a special statement of financial interest, in a manner specified by the General Counsel, which shall be available for public inspection. (b) A conflict of interest exists even though there is no reason to suppose that the employee will, in fact, resolve the conflict to his own personal advantage rather than to that of the Association. (b) After examining the information submitted the General Counsel may: (1) Relieve the employee from participation in the matter and, if possible, reassign it to another employee who is not subordinate to the relieved employee; (2) Approve the employee's participation upon determining in writing that the interest involved is not so substantial as to be likely to affect the integrity of the services the Association may expect from the employee; (3) Recommend the reassignment of the employee; or (4) If none of these alternatives is feasible, direct the employee to cause the financial interest to be divested so that it no longer comes within the scope of this section. (c) In any case in which the General Counsel has reason to believe that an employee may have an interest that would be disqualifying under this section, he shall discuss the matter with the employee. If he finds that the interest exists, he may take any of the actions stated in paragraph (b) of this section. (d) In any case in which the employee is dissatisfied with the General Counsel's decision, the employee may appeal the matter to the Chairman of the Association for reconsideration and final determination of the appropriate action. (e) Information concerning categories of financial interests which are exempted from the prohibitions of §§13(a), 15, and paragraph (a) of this section as being too remote or too inconsequential to affect the integrity of an employee's interest in a matter, are set forth in Appendix 1. (b) An employee may not, directly or indirectly, use or allow the use of his title or position in connection with any commercial enterprise or in endorsing any commercial product or service. (b) In the appointment of personnel and in assignment of their duties, the President of the Association shall take steps to avoid, to as great an extent as possible, any conflict between the Association duties and the private interests of such personnel. Subpart C—Statements of Employment and Financial Interest (1) Each employee who within the preceding two years was employed by or served as an attorney or consultant to, a railroad or a company significantly engaged in the manufacture, construction or supply of railroad facilities and equipment, including, but not limited to, rolling stock, terminal facilities, signal equipment, track and road bed, and electrical and communication transmission equipment. The General Counsel shall decide, in a doubtful case, whether the relationship to the railroad industry is sufficiently significant as to require submission of a statement of employment and financial interest. (2) Each employee who is in a position identified in Appendix 2. (b) Any employee who believes that his position has been improperly included as one requiring the submission of a statement of employment and financial interest is entitled to have that inclusion reviewed by the General Counsel. (c) Any employee in a position which meets the criteria in paragraph (a) of this section may be excluded from the reporting requirements of this section if the General Counsel determines that the duties of the position are at such a level of responsibility that the submission of a statement is not necessary because of the degree of supervision and review and the remote or inconsequential effect on the integrity of the Association. (b) Compliance with the reporting requirements of this subpart is not an alternative to observance of the conflict-of-interest provisions of subpart B of these regulations, but is to facilitate uniform compliance with, and the orderly administration of subpart B. (b) Each statement of employment and financial interest and each supplementary statement shall be maintained in the records of the Association. Subpart D—Disqualification of Former Employees in Matters Connected with Former Duties or Official Responsibilities; Disqualification of Partners Appendix 1—Categories of Financial Interests Exempted From the Prohibitions of Sections 13(a), 15, and 17(a) I. (a) The following are exempted from the prohibitions of sections 13(a), 15, and 17(a), because they are too remote or too inconsequential to affect the integrity of an employee's services in any matter in which he may act in his official capacity. (1) Any holding in a widely held mutual fund, or regulated investment company, which does not specialize in the transportation industry. (2) Ownership of shares of stock and of corporate bonds or other corporate securities, if the current aggregate market value of the stocks and other securities so owned in any single corporation is less than $10,000 and is less than one percent of the outstanding stock of the organization concerned, and if the employee, his spouse, or minor children are not active in the management of the organization and have no other connection with or interest in it. (3) Continued participation in a bona fide pension, retirement, deferred compensation, group life, health, or accident insurance plan or other employee welfare or benefit plan that is maintained by a business or nonprofit organization by which the employee was formerly employed, to the extent that the employee's rights in the plans are vested and require no additional services by him. To the extent the welfare or benefit plan is a profit sharing or stock bonus plan, this exemption does not apply. (b) Notwithstanding paragraph 1(a)(2), the interest of an employee, whose position is listed in section II of this appendix, shall not be exempt from the prohibitions of sections 13(a), 15, and 17(a), with respect to any stock or other security holding in an organization to which he is assigned, or for which he has specific responsibility as a part of his regular duties, for conducting inspections or issuing certificates, waivers, exemptions, or approvals. II. The following is a list of positions to which the exemption in paragraph 1(a)(2) of this appendix does not apply. This list may be amended at any time by the Association. [To be supplied] Appendix 2—List of Employees Required To Submit Statements of Employment and Financial Interest Under Section 31 [Reserved] [39 FR 3825, Jan. 30, 1974]
Title 49: Transportation
PART 99—EMPLOYEE RESPONSIBILITIES AND CONDUCT
Section Contents
§ 99.735-1 Cross-reference to ethical conduct standards and financial disclosure regulations.
§ 99.735-80 Applicability.
§ 99.735-81 Post-employment duties and responsibilities.
Appendix A to Part 99—Categories of Financial Interests Exempted From the Prohibitions of Section 208(a) of Title 18, United States Code
Appendixes B–D to Part 99 [Reserved]
Appendix E to Part 99—Statutes Regulating Post-Employment Responsibilities of Government and Special Government Employees
Appendix to Subtitle A—United States Railway Association—Employee Responsibilities and Conduct
Subpart A—General
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§ 99.735-1 Cross-reference to ethical conduct standards and financial disclosure regulations.
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Subparts B–E [Reserved]
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Subpart F—Responsibilities of the Government Employee and Special Government Employee Following Departure From Government Service
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§ 99.735-80 Applicability.
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§ 99.735-81 Post-employment duties and responsibilities.
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Appendix A to Part 99—Categories of Financial Interests Exempted From the Prohibitions of Section 208(a) of Title 18, United States Code
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Appendixes B–D to Part 99 [Reserved]
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Appendix E to Part 99—Statutes Regulating Post-Employment Responsibilities of Government and Special Government Employees
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Appendix to Subtitle A—United States Railway Association—Employee Responsibilities and Conduct
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