[Federal Register Volume 59, Number 120 (Thursday, June 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14803]


[[Page Unknown]]

[Federal Register: June 23, 1994]


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Part IV





Department of Labor





_______________________________________________________________________



Office of the Secretary



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29 CFR Part 0



Ethics and Conduct of Department of



Labor Employees; Final Rule
DEPARTMENT OF LABOR

Office of the Secretary

29 CFR Part 0

 

Ethics and Conduct of Department of Labor Employees

ACTION: Final rule.

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SUMMARY: This document repeals, retroactively, most of the regulatory 
provisions relating to ``Ethics and Conduct of Department of Labor 
Employees''. This action is necessary in order to conform our 
regulations to the provisions of superceding final rules issued by the 
Office of Government Ethics (OGE). Our rule is intended to meet the OGE 
requirements and to remove any obsolete Labor Department requirements. 
This final rule also makes other clarifying or technical changes.

EFFECTIVE DATE: The amendments to subparts A, B, C, and D shall be 
effective as of February 3, 1993. The amendments to subpart E shall be 
effective as of October 5, 1992.

FOR FURTHER INFORMATION CONTACT:
Robert Shapiro, Office of the Solicitor, Room N-2428, 200 Constitution 
Avenue, N.W., Washington, D.C. 20210, telephone (202/FTS) 219-8201, FAX 
(202/FTS) 219-6896.

SUPPLEMENTARY INFORMATION: On April 7, 1992, the Office of Government 
Ethics (OGE) published an interim rule, 5 CFR Part 2634, establishing a 
new confidential financial disclosure reporting system for executive 
branch departments and agencies, effective October 5, 1992. The new 
confidential financial reporting system supersedes 5 CFR 735.106, all 
of subpart D of Part 735 of 5 CFR, and all implementing agency 
regulations thereunder, including Department of Labor regulations 
contained in subpart E of 29 CFR part 0.
    On August 7, 1992, the Office of Government Ethics published a 
final rule to establish, effective February 3, 1993, uniform standards 
of ethical conduct for all employees of the executive branch (57 FR 
35006-35067). This OGE rule is intended to carry out, among other 
provisions, the mandate of section 201 of Executive Order 12674 of 
April 12, 1989, as modified by E.O. 12731, which directs the Office of 
Government Ethics to establish a single, comprehensive and clear set of 
executive-branch standards of conduct that shall be objective, 
reasonable, and enforceable. The final OGE rule is codified at 5 CFR 
2635. It supersedes most of the OGE's model ethics and conduct 
regulations found at subparts A, B, and C of 5 CFR part 735 and agency 
ethics regulations issued thereunder including subparts A-D the 
Department of Labor ethics and conduct regulations (29 CFR part 0).
    On November 30, 1992, the Office of Personnel Management (OPM) 
reissued uniform standards of conduct regulations relating to gambling, 
conduct prejudicial to the Government, and the special preparation of 
persons for civil service and foreign service examinations. This OPM 
action will preserve the executive branch-wide applicability of certain 
provisions which are not included in the OGE regulations at part 2635.
    The Department of Labor final rule revokes the superseded 
provisions of subparts A through D of the Department of Labor ethics 
and conduct regulations, effective February 3, 1993, and revokes 
subpart E, effective October 5, 1992. The proposed rule, however, had 
permitted certain Department of Labor regulations, instructions, and 
issuances to remain in effect for a limited period. The limited 
continuation of these provisions was consistent with the Office of 
Government Ethics rules contained in 5 CFR 2635.
    On February 2, 1994, the Office of Government Ethics extended this 
maximum grace period with respect to the Department of Labor and other 
agencies for another year, until February 3, 1995 (59 FR 4779-4780). 
Consistent with this February 2 rule, the Department of Labor final 
regulation also extends the maximum grace period until February 3, 
1995, one year beyond the grace period set forth in the proposed rule.
    The grace period will end before February 3, 1995 if, prior to that 
date, a supplemental ethics regulation is issued under 5 CFR part 2635 
which applies to the Department of Labor. Section 2635.105 of the OGE 
rule provides that in addition to the OGE standards of conduct 
contained in part 2635 an agency may issue, jointly with OGE, 
supplemental agency regulations with which the OGE has concurred.
    Consistent with the OGE rule, this final rule would not, during the 
grace period, disturb the continued effectiveness of current 
regulations, instructions, and issuances of the Department of Labor 
(including its constituent agencies) restricting the acquisition or 
holding of certain financial interests. Retention of these requirements 
is in accordance with the Note at Sec. 2635.403(a) of the OGE 
regulations, as amended by 59 FR 4779-4780.
    The final rule also would not disturb the continued effectiveness 
of existing Department-wide and agency regulations, instructions, or 
other issuances requiring prior approval of outside employment or 
activities. The Note to Sec. 2635.803 provides, as in the case of 
restrictions on financial interests, that these prior approval 
requirements will be regarded as agency supplemental regulations for a 
time period described identically to that set forth in Sec. 2635.403. 
The OGE rule published at 59 FR 4779-4780 also amends the Note at 
Sec. 2635.803 to apply the same extended grace period to existing 
issuances requiring prior approval of outside employment or activities.
    The final rule would not affect the current regulatory waiver 
issued by the Department of Labor under the authority of title 18 
U.S.C. Sec. 208(b)(2). This waiver is found in the Department of Labor 
ethics regulations at 29 CFR Sec. 0.735-12(c). It permits Department of 
Labor employees to engage in official activities affecting certain 
financial interests in insurance companies, mutual funds, investment 
companies or banks, even though engaging in such activities would 
otherwise be prohibited by 18 U.S.C. Sec. 208(a). It is likely that the 
Department of Labor waiver provided in 29 CFR Sec. 0.735-12(c) will 
eventually be superseded by OGE action. Section 2635.402(d)(1) provides 
that pending the issuance of superseding regulatory waivers by OGE, 
agency regulatory waivers issued prior to November 30, 1989, continue 
to apply.
    For clarification purposes, the final rule changes the words 
``agency supplemental regulation'' in the proposed new Sec. 0.735-13(d) 
to read ``Department of Labor supplemental regulation'' and it adds the 
words ``this section and any'' after the words ``shall include'' in the 
last sentence thereof. It deletes the comma after the word ``agency'' 
in the first sentence of that paragraph and inserts a comma after 
``financial interest'' in the same sentence. As a technical matter, the 
final rule makes a correction in the authority citation to 29 CFR Part 
0 which is set forth in the proposed rule. It deletes the reference to 
``5 CFR part 737.'' The citation has been amended to read, ``48 FR 
11944 (March 22, 1983), amending 29 CFR part 0''.
    The proposed rule was published for comment in the Federal Register 
on June 28, 1993, at 58 FR 34542-34544. No comments were received.

Administrative Procedure Act

    Pursuant to 5 U.S.C. 553 (a)(2) and (b), as Secretary of Labor, I 
find that good cause exists for waiving the general notice of proposed 
rulemaking, notwithstanding the differences between the final and 
proposed rules. I find, pursuant to 553(a)(2) that this final rule 
relates to agency management or personnel and under 553(b)(A), that it 
relates to rules of agency organization, procedure, or practice. The 
general notice of proposed rulemaking is also being waived pursuant to 
5 U.S.C. 553(b)(B) because these regulations are the direct result of 
regulations issued by the Office of Government Ethics. Moreover, the 
proposed rule that was previously published for comment is 
substantially identical to this final rule, except for the duration of 
the grace period. This extended grace period is in conformity with 
regulations of the Office of Government Ethics at 59 FR 4779-4780.
    In light of the recent issuance of the extended grace period 
provisions at 59 FR 4779-4780, it is in the public interest to clarify 
for employees of the Department of Labor the ethics rules applicable to 
their conduct. Accordingly, for the reasons set forth in the preamble, 
the amendments to 29 CFR part 0, subparts A, B, C, and D, shall be 
effective as of February 3, 1993. The amendments to part E shall be 
effective as of October 5, 1992.

Executive Order 12866

    In promulgating this final rule, the Department of Labor has 
adhered to the regulatory philosophy and the applicable principles of 
regulation set forth in section 1 of Executive Order 12866, Regulatory 
Planning and Review. This final rule has not been reviewed by the 
Office of Management and Budget under that Executive Order, as it is 
not deemed to be a ``regulatory action'' under Sec. 3 (d) and (e) of 
the Executive Order, nor is it deemed to be ``significant'' under 
Sec. 3(f) thereof.

Regulatory Flexibility Act

    As Secretary of Labor, I certify under the Regulatory Flexibility 
Act (5 U.S.C. chapter 6) that this regulation will not have significant 
economic impact on a substantial number of small entities because it 
affects only Federal employees.

Paperwork Reduction Act

    As Secretary of Labor, I have determined that the Paperwork 
Reduction Act (44 U.S.C. chapter 35) does not apply because this 
regulation does not contain any information collection requirements 
that require the approval of the Office of Management and Budget 
thereunder.

List of Subjects in 29 CFR Part 0

    Conflicts of interest; Government employees and former employees.

    Accordingly, for the reasons set out in the preamble, the 
Department of Labor is amending 29 CFR part 0 as follows:

PART 0--ETHICS AND CONDUCT OF DEPARTMENT OF LABOR EMPLOYEES

    1. The authority citation for part 0 is revised to read as follows:

    Authority: E.O. 11222; 1964-1965 Comp., p. 306; 5 CFR part 735; 
18 U.S.C. Sec. 201-209; 48 FR 11944 (Mar. 22, 1983), amending 29 CFR 
Part 0; 5 U.S.C. 7351, 7353; 5 U.S.C. App. (Ethics in Government Act 
of 1978); 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; 5 
CFR part 2634; and 5 CFR part 2635.

PART 0--[AMENDED]

    2. Part 0 is amended by removing and reserving subparts A, B, D, 
and E.
    3. Part 0, subpart C is amended by removing and reserving 
Sec. 0.735-11 and by removing and reserving the introductory text, and 
paragraphs (a), (b), and (d) in Sec. 0.735-12.
    4. Section 0.735-13 is amended by revising the section heading to 
read as follows and by adding a new paragraph (d) at the end of the 
section to read as follows:


Sec. 0.735-13  Financial interests and clearance of outside activities.

* * * * *
    (d) In accordance with the Note to 5 CFR Sec. 2635.403(a) and the 
Note to 5 CFR 2635.803, as amended by 59 FR 4779-4780 (February 2, 
1994), any requirement for prior approval of employment or activities 
and any prohibition on acquiring or holding a specific financial 
interest, contained in an agency regulation, instruction, or other 
issuance which is in effect prior to February 3, 1993 shall remain 
effective until February 3, 1995 or until issuance of a Department of 
Labor supplemental regulation under part 2635, whichever occurs first. 
Issuances which are the subject of this paragraph shall include this 
section and any regulations, instructions, or other issuances by the 
Department of Labor and any agencies within the Department of Labor.

    Signed at Washington, DC this 10th day of June 1994.
Robert B. Reich,
Secretary of Labor.
[FR Doc. 94-14803 Filed 6-22-94; 8:45 am]
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