[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR6001.104]

[Page 809-810]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                 CHAPTER L--DEPARTMENT OF TRANSPORTATION
 
PART 6001_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE 
 
Sec. 6001.104  Prohibited financial interests.

    (a) Federal Railroad Administration (FRA). (1) Except as provided in 
paragraph (c) of this section, no FRA employee shall hold stock or have 
any other financial interest, including outside employment, in a 
railroad company subject to FRA regulation.
    (2) No FRA employee appointed after December 1991 shall hold 
reemployment rights with a railroad company subject to FRA regulation 
after his or her first year of employment.
    (3) No spouse or minor child of an FRA employee shall hold stock or 
any other securities interest in a railroad company subject to FRA 
regulation.
    (b) Federal Aviation Administration (FAA). Except as provided in 
paragraphs (c) and (d) of this section, no FAA employee, or spouse or 
minor child of the employee, may hold stock or have any other securities 
interest in an airline or aircraft manufacturing company, or in a 
supplier of components or parts to an airline or aircraft manufacturing 
company.
    (c) Exception. The prohibitions in paragraphs (a)(1) and (b) of this 
section do not apply to a financial interest in

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a publicly traded or publicly available investment fund, provided that, 
at the time of the employee's appointment or upon initial investment in 
the fund, whichever occurs later, the fund does not have invested, or 
indicate in its prospectus the intent to invest more than 30 percent of 
its assets in a particular transportation or geographic sector and the 
employee neither exercises control nor has the ability to exercise 
control over the financial interests held in the fund.
    (d) Waiver. An agency designee may grant a written waiver from the 
prohibition contained in paragraph (b) of this section, based on a 
determination that the waiver is not inconsistent with 5 CFR part 2635 
or otherwise prohibited by law, and that, under the particular 
circumstances, application of the prohibition is not necessary to avoid 
the appearance of misuse of position or loss of impartiality, or 
otherwise to ensure confidence in the impartiality and objectivity with 
which FAA programs are administered. A waiver under this paragraph may 
be accompanied by appropriate conditions, such as requiring execution of 
a written statement of disqualification. Notwithstanding the granting of 
any waiver, an employee remains subject to the disqualification 
requirements of 5 CFR 2635.402 and 2635.502.
    (e) Period to divest. An individual subject to this section who 
acquires a financial interest subject to this section, as a result of 
gift, inheritance, or marriage, shall divest the interest within a 
period set by the agency designee. Until divestiture, the 
disqualification requirements of 5 CFR 2635.402 and 2635.502 remain in 
effect.

[61 FR 39903, July 31, 1996, as amended at 66 FR 60140, Dec. 3, 2001]

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