Administrative Code

Virginia Administrative Code
8/17/2022

Part 705. Restrictions on Financial Interests of State Employees

4VAC25-130-705.4. Responsibility.

(a) The Director shall:

(1) Provide advice, assistance, and guidance to all State employees required to file statements pursuant to 4VAC25-130-705.11;

(2) Inform annually each State employee required to file a statement with the Director of the name, address, and telephone number of the person who may be contacted for advice and counseling;

(3) Furnish a blank statement 45 days in advance of the filing date established by 4VAC25-130-705.13(a) to each State employee required to file a statement;

(4) Promptly review the statement of employment and financial interest and supplements, if any, filed by each employee, to determine if the employee has correctly identified those listed employment and financial interests which constitute a direct or indirect financial interest in an underground or surface coal mining operation;

(5) Resolve prohibited financial interest situations by ordering or initiating remedial action or by reporting the violation to the Director of the OSM;

(6) Certify on each statement that review has been made, that prohibited financial interests, if any, have been resolved, and that no other prohibited interests have been identified from the statement;

(7) Submit to the Director of the OSM such statistics and information as the Director of the OSM may request to enable the preparation of the required annual report to Congress;

(8) Submit to the Director of the OSM, the initial listing and the subsequent annual listing of positions as required by 4VAC25-130-705.11(b), (c), and (d).

(b) Employees performing any duties or functions under the Act shall:

(1) Have no direct or indirect financial interest in coal mining operations;

(2) File a fully completed statement of employment and financial interest annually on the specified filing date; and

(3) Comply with directives from persons responsible for approving statements or ordering remedial action.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.4, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.11. Who shall file.

(a) Any employee who performs any function or duty under the Act is required to file a statement of employment and financial interests. An employee who occupies a position which has been determined by the Director not to involve performance of any function or duty under the Act or who is no longer employed by the Department at the time a filing is due, is not required to file a statement.

(b) The Director shall prepare:

(1) A list of those divisions, offices and sections within the Department which do not perform any functions or duties under the Act; and

(2) A list of the positions not performing functions or duties under the Act for only those divisions, offices and sections that do have employees performing functions or duties under the Act.

(c) Only those employees who are employed in a listed division office or section, or who occupy a listed position will be exempted from the filing requirements of these regulations.

(d) The Director shall submit these lists to the Director of the OSM, together with written justification for inclusion of the positions and the organizations listed.

(e) The Director shall review and update these lists annually. The Director may revise these lists by the addition or deletion of positions and organizations at any time he determines such revisions are required to carry out the purposes of the Act or these regulations. Proposed revisions or certification that revision is not required shall be submitted to the Director of the OSM no later than September 30 of each year. Additions to and deletions from the list of positions are effective upon notification to the incumbents of the positions added or deleted.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.11, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.13. When to file.

(a) Employees performing functions or duties under the Act shall file annually on February 1 of each year or at such other date as may be specified by the Director with the concurrence of the OSM.

(b) New employees hired, appointed, or transferred to perform functions or duties under the Act will be required to file at the time of entrance to duty.

(c) New employees are not required to file an annual statement on the subsequent annual filing date if this date occurs within two months after their initial statement was filed.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.13, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.15. Where to file.

The Director shall file his statement with the OSM. All other employees, as provided in 4VAC25-130-705.11, shall file their statement with the Director.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.15, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.17. What to report.

(a) General. Each employee shall report all information required on the statement of employment and financial interests for the employee, the employee's spouse, minor children or other relatives who are full-time residents of the employee's home. The report shall be on OSM form 705-1 provided by the OSM. The statement consists of three major parts, (1) a listing of all financial interests, including employment, security, real property, creditor and other financial interests held during the course of the preceding year, (2) a certification that none of the listed financial interests represent a direct or indirect financial interest in an underground or surface coal mining operation except as specifically identified and described by the employee as part of the certificate, and (3) a certification by the reviewer that the form was reviewed, that prohibited interests have been resolved, and that no other prohibited interests have been identified from the statement.

(b) Listing of all financial interest. The statement will set forth the following information regarding any financial interest:

(1) "Employment." Any continuing financial interests in business entities and non-profit organizations through a pension or retirement plan, shared income, salary or other income arrangement as a result of prior or current employment. Pension or retirement plans with a guaranteed income need not be reported. A guaranteed income is one which is unlikely to be changed as a result of actions taken by the division.

(2) "Securities." Any financial interest in business entities and non-profit organizations through ownership of stock, stock options, bonds, securities or other arrangements including trusts. An employee is not required to report holdings in widely diversified mutual funds, investment clubs or regulated investment companies not specializing in underground and surface coal mining operations.

(3) "Real Property." Ownership, lease, royalty or other interests or rights in lands or minerals. Employees are not required to report lands developed and occupied for a personal residence.

(4) "Creditors." Debts owed to business entities and non-profit organizations. Employees are not required to report debts owed to financial institutions (banks, savings and loan associations, credit unions, and the like) which are chartered to provide commercial or personal credit. Also excluded are charge accounts and similar short term debts for current and ordinary household and living expenses.

(c) Employee certification, and, if applicable, a listing of exceptions.

(1) The statement will provide for a signed certification by the employee that to the best of his knowledge, (i) none of the listed financial interests represent an interest in an underground or surface coal mining operation except as specifically identified and described as exceptions by the employee as part of the certificate, and (ii) the information shown on the statement is true, correct, and complete.

(2) An employee is expected to have complete knowledge (i) of personal involvement in business enterprises such as a sole proprietorship and partnership, his outside employment and the outside employment of the spouse and other covered relatives, and (ii) of other corporate or business reports routinely circulated to investors or routinely made available to the public.

(3) The exceptions shown in the employee certification of the form must provide enough information for the Director to determine the existence of a direct or indirect financial interest. Accordingly, the exceptions should:

(i) List the financial interests;

(ii) Show the number of shares, estimated value or annual income of the financial interests; and

(iii) Include any other information which the employee believes should be considered in determining whether or not the interest represents a prohibited interest.

(4) Employees are cautioned to give serious consideration to their direct and indirect financial interests before signing the statement of certification. Signing the certification without listing known prohibited financial interests may be cause for imposing the penalties prescribed by law.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.17, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.19. Resolving prohibited interests.

(a)(1) If an employee has a prohibited financial interest, the Director shall promptly notify the employee in writing, that remedial action which will resolve the prohibited interest is required within 90 days.

(2) Remedial action may include:

(i) Reassignment of the employee to a position which performs no function or duty under the Act, or

(ii) Divestiture of the prohibited financial interest, or

(iii) Other appropriate action which either eliminates the prohibited interest or eliminates the situation which creates the conflict.

(3) If 90 days after an employee is notified to take remedial action that employee is not in compliance with the requirements of the Act and these regulations, the Director shall report the facts of the situation to the Director of the OSM, who, pursuant to Federal regulations is required to determine whether action to impose penalties prescribed under section 517(g) of the Federal Act should be initiated. The report to the Director of the OSM shall include the original or a certified true copy of the employee's statement and any other information pertinent to the determination, including a statement of action being taken at the time the report is made.

(b)(1) If it is determined that the Director has a prohibited financial interest, the Director will comply with remedial action recommended by the OSM within 90 days of notification from the Governor or other State official chosen by the OSM to give notification of such recommended remedial action.

(2) Remedial action should be consistent with the procedures prescribed for other State employees by 4VAC25-130-705.19(a)(2).

(c) The Director shall take steps to assure that employees are notified of additional remedial action to be taken pursuant to recommendations from the OSM and that such actions are carried out.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.19, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.21. Appeals procedures.

(a) Employees shall have the right to appeal a notification for remedial action under 4VAC25-130-705.19 and shall have 30 days to exercise this right before remedial action is initiated.

(b) An appeal shall be in writing on a standard State grievance form, which shall be submitted in accordance with the procedure specified in Part B of the First Step (Supervisor level) of the State Grievance Procedure. The appeal shall proceed as a grievance in accordance with the State Grievance Procedure, which shall apply for the purposes of appeal under this section to all employees including managerial employees, except agency heads and probationary employees. Nothing in the State Grievance Procedure, however, shall prevent the Director from reporting on the situation to the OSM, nor preclude the OSM from taking its own action against employees.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.21, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.22. Penalties for failure to file disclosure statements.

Any employee who fails to file the disclosure statement required under 4VAC25-130-705.17 will be subject to removal from his position, and dismissal from the Department.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.22, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.23. Other state and local government agencies.

(a) The head of each State or local government agency which performs any function or duty under the Act, pursuant to a memorandum of agreement with the Department, or other authorization, shall, prior to such agency commencing functions or duties under the Act, prepare a list of positions within the agency which perform, or will perform, functions or duties under the Act, and shall submit this list to the Director and shall certify that the list contains all positions within the agency which will be performing functions or duties under the Act.

(b) Each employee who occupies a position listed pursuant to Subsection (a) of this section, shall, prior to commencing any function or duty under the Act, complete a statement of employment and financial interest in accordance with 4VAC25-130-705.17 and shall file the statement with the head of the employee's agency. Each such employee shall also complete and file a statement annually, in accordance with 4VAC25-130-705.13.

(c) The head of each State or local agency having positions listed pursuant to Subsection (a) of this section shall be responsible for insuring that each employee who occupies a listed position within the agency receives a form for the statement of employment and financial interest, and that the employee completes the statement. The head of the agency shall collect all completed statements and shall submit them to the Director and shall certify that all employees occupying listed positions have completed and filed the required statement.

(d) The Director shall review the statements and if he finds that there are prohibited financial interests, he shall notify the head of the agency of the employee having the prohibited financial interest. The head of the agency shall promptly notify the employee and take action in accordance with 4VAC25-130-705.19 to resolve the prohibited interest within 90 days of notification to the employee. The head of the agency shall report the result of such actions to the Director. If the employee is not in compliance by the end of the 90-day period, then the Director shall report the facts of the situation to the OSM, and shall take such other steps, including termination or modification of any memorandum of agreement as he deems appropriate.

(e) Members of boards or commissions of other State or local government agencies which perform functions or duties under the Act shall complete and file a statement of employment and financial interest, if such members perform duties or functions under the Act, such as, but not limited to, the adoption of regulations, the issuances of certificates or permits, and the determination of contested cases.

(f) The phrase "performing any function or duty under the Act" as used in this section, shall be construed to mean those functions or duties under the Act which would have been performed by employees of the Department in the absence of a memorandum of agreement between the Department and another State or local government agency or similar authorization.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.23, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

4VAC25-130-705.24. Confidentiality and access to disclosure statements.

(a) The provisions of the Virginia Freedom of Information Act ( § 2.2-3700 et seq. of the Code of Virginia) shall apply to statements and information obtained pursuant to these regulations.

(b) All statements of employment and financial interest which are filed pursuant to these regulations, and the information shown thereon, shall be maintained only for the purposes of determining whether there are any direct or indirect financial interests in violation of § 45.2-1005 of the Act, and Section 517(g) of the Federal Act. No other use is authorized.

(c) Access to such statements and information shall be restricted to personnel of the Department and of the U.S. Department of the Interior, and State and Federal enforcement authorities (including the U.S. Justice Department) for the purposes for which the information was collected. Access among personnel of the Department shall be further restricted to only those persons specified by the Director as having regular access to the statements and information.

(d) All such statements and information shall be maintained separate and apart from personnel records and other records to which the public could have access.

(e) The filing and information system where such statements and information are stored shall be identified as restricted access and secured against unauthorized access. The Director shall designate a custodian for records maintained in the Division's Office in Big Stone Gap, and another custodian for records maintained in the Department's Offices in Richmond. The duties of these custodians shall be to maintain restricted access and security for their respective records.

(f) Whenever any employee ceases to occupy a listed position which requires the filing of a statement of employment and financial interest, all such statements then on file from such employee shall be returned to the employee and all information systems purged of the data provided by such statements upon request of the employee. In addition, the custodian of the records where such statements are maintained shall periodically update the records by purging them of statements and information pertaining to employees who no longer occupy listed positions.

Statutory Authority

§ 45.2-103 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.4, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994; Volume 38, Issue 13, eff. March 31, 2022.

4VAC25-130-705.25. Gifts and gratuities.

(a) Except as provided in Paragraph (b) of this section, employees shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan or other similar item of monetary value, from a coal company which:

(1) Conducts or is seeking to conduct, operations or activities that are regulated under the Act; or

(2) Has interests that may be substantially affected by the performance or non-performance of the employee's official duty.

(b) The prohibitions in Paragraph (a) of this section do not apply in the context of obvious family or personal relationships, such as those between the parents, children, or spouse of the employee and the employee, when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors. An employee may accept:

(1) Food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon, dinner, or other meeting where an employee may properly be in attendance; and

(2) Unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars and other items of nominal value.

(c) Any employee who violates the provisions of this section shall be subject to dismissal, demotion or suspension from his position of employment, and to such fines and punishments as may be provided by law. An employee may appeal a dismissal, demotion or suspension under this Subsection in accordance with the State Grievance Procedure.

Statutory Authority

§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.

Historical Notes

Derived from VR480-03-19 § 705.25, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.

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