[Code of Federal Regulations]
[Title 14, Volume 5, Parts 1200 to end]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1207.102]

[Page 67-69]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
                          SPACE ADMINISTRATION
 
PART 1207--STANDARDS OF CONDUCT--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 1207.102  Waiver of statutory prohibition.

    (a) Specific waiver available. The prohibition of 18 U.S.C. 208(a) 
may be waived in connection with a specific matter of the type which 
comes under the statute if the employee makes a full disclosure in 
writing of the nature of the matter involved and of the financial 
interest relating thereto and receives, in advance of participation in 
such matter, a written determination that such financial interest is not 
so substantial as to affect the integrity of the employee's services 
and, therefore, that the employee may participate personally and 
substantially in that matter. The procedures set forth in paragraph (c) 
of this section will be followed in connection with granting a waiver as 
described in this section.
    (b) General waivers. The prohibition of 18 U.S.C. 208(a) also may be 
waived by general regulation applicable to all NASA employees so as to 
permit an employee (including civilian and military personnel of other 
Government agencies regularly detailed to NASA) to participate 
personally and substantially in a specific matter, notwithstanding the 
existence of a financial interest relating to that matter, where

[[Page 68]]

it has been determined that such a financial interest is too remote or 
inconsequential to affect the integrity of the employee's governmental 
capacity. Such a determination has been made by the Administrator and 
published in the Federal Register with respect to the following 
categories of financial interest:
    (1) The following exemptions apply to financial interests which are 
held directly by a NASA employee, or by the employee's spouse or minor 
child, whether jointly or individually, or by a NASA employee and the 
employee's partner or partners as joint assets of the partnership:
    (i) Ownership of shares of common or preferred stocks, including 
warrants to purchase such shares, 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 does not 
exceed $5,000, and provided such stocks and securities are listed for 
public trading on a major stock exchange. This exemption extends also to 
any financial interests that the corporation whose stocks or other 
securities are so owned may have in other business entities. This 
exemption shall not apply to membership on boards or committees 
constituted as part of the NASA Source Evaluation Board (SEB) process 
unless specific written approval for such membership is obtained from 
the Designated Agency Ethics Official.
    (ii) Ownership of bonds other than corporate bonds, regardless of 
the value of such interest. This exemption extends also to any financial 
interests that the organization whose bonds are so owned may have in 
other business entities.
    (iii) Ownership of shares in a widely diversified mutual fund or 
regulated investment company regardless of the value of such interests. 
This exemption extends also to any financial interests that the mutual 
fund or investment company may have in other business entities.
    (2) If a NASA employee or the employee's spouse or minor child has a 
present beneficial interest or a vested remainder interest under a 
trust, the ownership of stocks, bonds, or other corporate securities 
under the trust will be exempt to the same extent as provided in 
paragraph (b)(1)(i) of this section for the direct ownership of such 
securities. The ownership of bonds other than corporate bonds, or of 
shares in a mutual fund or regulated investment company, under the trust 
will be exempt to the same extent as provided under paragraphs 
(b)(1)(ii) and (b)(1)(iii) of this section, for the direct ownership of 
such bonds or shares.
    (3) If a NASA employee is an officer, director, trustee, or employee 
of an educational institution, or if the employee is negotiating for, or 
has an arrangement concerning prospective employment with such an 
institution, a direct financial interest which the institution has in 
any matter will not itself be exempt, but any financial interest that 
the institution may have in the matter through its holdings of 
securities issued by business entities will be exempt, provided the NASA 
employee is not serving as a member of the investment committee of the 
institution or is not otherwise advising it on its investment portfolio.
    (4) If a NASA employee has continued to participate 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 of which the employee is a former employee, 
the employee's financial interest in that organization will be exempt, 
except to the extent that the welfare or benefit plan is a profit 
sharing or stock bonus plan. This exemption extends also to any 
financial interests that the organization may have in other business 
activities.
    (c) Procedures for specific waiver. (1) The written request for a 
waiver will describe the specific matter involved, the nature and extent 
of the employee's participation therein, and the exact nature and amount 
of financial interest relating to the specific matter.
    (2) Employees who are key officials, or who are appointed under 
authority of section 203(c)(2)(A) (``NASA Excepted Positions'') or 
section 203(c)(10) (``Alien Scientists'') of the National Aeronautics 
and Space Act of 1958 (42 U.S.C. 2473(c)(2)(A) and 2473(c)(10)), or 
under 5 U.S.C. 3131 et seq. (Senior Executive Service), will forward the 
request

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to the Administrator. It shall be submitted through the appropriate 
Chief Counsel or General Counsel and the appropriate Director of a Field 
or Component Installation or Official-in-Charge of a Headquarters 
Office, who will transmit the request to the Administrator with comments 
and recommendations on the proposed waiver. The determination required 
by the statute will be made only by the Administrator or Deputy 
Administrator in the case of these employees.
    (3) All other employees will forward their requests for a waiver 
through the appropriate Chief Counsel or General Counsel to the 
appropriate Director of a Field or Component Installation or Official-
in-Charge of a Headquarters Office. For Headquarters employees, the 
Associate Administrator for Management is authorized to make the 
determination required by the statute. For employees at an installation, 
the Directors of Field and Component Installations, and their Deputies 
are authorized to make the determination required by the statute. This 
authority may not be redelegated.
    (4) A copy of waiver granted by the Director of a Field or Component 
Installation shall be forwarded to the Associate Administrator for 
Management, NASA Headquarters.

[52 FR 22755, June 16, 1987, as amended at 53 FR 4606, Feb. 17, 1988. 
Redesignated at 59 FR 49338, Sept. 28, 1994]