[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: 5CFR6401.102]

[Page 823-824]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
              CHAPTER LIV--ENVIRONMENTAL PROTECTION AGENCY
 
PART 6401_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE 
 
Sec. 6401.102  Prohibited financial interests.

    (a) The following employees are prohibited from holding the types of 
financial interests described in this section:
    (1) Employees in the Office of Mobile Sources are prohibited from 
having outside employment with or holding stock or any other financial 
interest in manufacturers of automobiles and mobile source pollution 
control equipment.
    (2) Employees in the Office of Pesticide Programs are prohibited 
from having outside employment with or holding stock or any other 
financial interest in companies that manufacture or provide wholesale 
distribution of pesticide products registered by the EPA. These 
restrictions apply to companies with subsidiaries in these areas but do 
not include retail distributors to the general public.
    (3) Employees in the Office of Information Resources Management 
involved with data management contracting or computer contracting are 
prohibited from having outside employment with or holding stock or any 
other financial interest in data management, computer, or information 
processing firms.
    (4) Employees who perform functions or duties under the Surface 
Mining Control and Reclamation Act (such as reviewing Environmental 
Impact Statements of the Office of Surface Mining in the Department of 
Interior) are prohibited by 30 U.S.C. 1211(f) from holding direct or 
indirect interests in underground or surface coal mining operations.
    (i) Implementing regulations of the Office of Surface Mining at 30 
CFR 706.3 define the terms ``direct financial interest'' and ``indirect 
financial interest'' as follows:
    (A) Direct financial interest means ownership or part ownership by 
an employee of land, stocks, bonds, debentures, warrants, a partnership, 
shares, or other holding and also means any other arrangement where the 
employee may benefit from his or her holding in or salary from coal 
mining operations. Direct financial interests include employment, 
pensions, creditor, real property and other financial relationships.
    (B) Indirect financial interest means the same financial 
relationships as for direct ownership but where the employee reaps the 
benefits of such interests, including interests held by the employee's 
spouse, minor child or other relatives, including in-laws, residing in 
the employee's home. The employee will not be deemed to have an indirect 
financial interest if there is no relationship between the employee's 
functions or duties and the coal mining operation in which the spouse, 
minor child or other resident relative holds a financial interest.
    (ii) Violation of the restrictions in this section is punishable by 
a fine of up to $2,500 or imprisonment for not more that one year, or 
both.
    (iii) Employees who perform functions or duties under the Surface 
Mining Control and Reclamation Act are not prohibited thereunder from 
holding interests in excepted investment funds as defined at 5 CFR 
2634.310(c)(2) provided that such funds are widely diversified, that is, 
hold no more than 5% of the value of their portfolios in the securities 
of any one issuer (other than the United States Government) and no

[[Page 824]]

more than 20% in any particular economic or geographic sector.
    (5) Members of the Interagency Testing Committee established under 
section 4(e) of the Toxic Substances Control Act (15 U.S.C. 2603(e)) are 
prohibited thereunder from holding any stocks or bonds, or having any 
substantial pecuniary interest, in any person engaged in the 
manufacture, processing, or distribution in commerce of any substance or 
mixture subject to any requirement of the Act or any rule or order 
issued under the Act and, for a period of twelve months after their 
committee service has ceased, are prohibited thereunder from accepting 
employment or compensation from any person subject to any requirement of 
the Act or to any rule or order issued under the Act.
    (i) The statutory prohibitions in this section are enforceable by an 
action for a court order to restrain violations.
    (ii) Members of the Interagency Testing Committee are not prohibited 
thereunder from holding interests in excepted investment funds as 
defined at 5 CFR 2634.310(c)(2) provided that such fund are widely 
diversified, that is, hold no more than 5% of the value of their 
portfolios in the securities of any one issuer (other than the United 
States Government) and no more than 20% in any particular economic 
sector.
    (b) The Designated Agency Ethics Official or the cognizant Deputy 
Ethics Official may grant a written waiver from the prohibitions in 
paragraph (a)(1) through (a)(3) of this section based on a determination 
that the waiver is not inconsistent with part 2635 of this title 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 agency programs are administered. A waiver under this paragraph 
may impose appropriate conditions, such as requiring execution of a 
written disqualification.