[Federal Register Volume 59, Number 187 (Wednesday, September 28, 1994)]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23735]


  Federal Register / Vol. 59, No. 187 / Wednesday, September 28, 1994 /   
[Federal Register: September 28, 1994]


                                                   VOL. 59, NO. 187

                                      Wednesday, September 28, 1994

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

5 CFR Chapter LIX

14 CFR Part 1207

RINs 2700-AB44, 2700-AB48, and 3209-AA15


Supplemental Standards of Ethical Conduct for Employees of the 
National Aeronautics and Space Administration

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The National Aeronautics and Space Administration, with the 
concurrence of the Office of Government Ethics (OGE), is issuing a 
regulation for employees of NASA that supplements the executive branch-
wide Standards of Ethical Conduct (Standards) issued by OGE and 
codified at 5 CFR part 2635. NASA is also repealing those sections of 
its existing standards of conduct regulations that are now superseded 
by the new Standards and by the executive branch financial disclosure 
regulations at 5 CFR part 2634, also issued by OGE, and is adding a 
cross-reference to the current provisions.

EFFECTIVE DATE: These regulations are effective September 28, 1994.

FOR FURTHER INFORMATION CONTACT:
James L. Hoffman, NASA, (202) 358-2465.

SUPPLEMENTARY INFORMATION:

I. Background

    On August 7, 1992, the Office of Government Ethics published the 
Standards of Ethical Conduct for Employees of the Executive Branch that 
are now codified at 5 CFR part 2635. See 57 FR 35006-35067, as 
corrected at 57 FR 48557 and 52583, with an additional grace period 
extension at 59 FR 4779-4780. The Standards became effective February 
3, 1993, and established uniform ethical conduct standards applicable 
to all executive branch personnel.
    With the concurrence of OGE, 5 CFR 2635.105 authorizes executive 
branch agencies to publish agency-specific supplemental regulations 
that are necessary to properly implement their respective ethics 
programs. NASA, with OGE's concurrence, has determined that the 
following supplemental regulations, being codified in new chapter LIX 
of 5 CFR, are necessary for successful implementation of NASA's ethics 
program, in light of NASA's unique programs and operations.

II. Analysis of the Regulations

Section 6901.101  General

    Section 6901.101 explains that the regulations apply to NASA 
employees and supplement the Standards at 5 CFR part 2635.

Section 6901.102  Designation of Responsible Officials

    Although some sections of NASA's existing rules at 14 CFR part 1207 
have been temporarily ``grandfathered'' by the new OGE Standards, and 
others were not affected, 14 CFR part 1207 will eventually be totally 
superseded by a combination of the new Standards, the new financial 
disclosure regulation, the NASA supplemental regulation, NASA internal 
directives, and a future OGE regulation on regulatory waivers issued 
under 18 U.S.C. 208(b)(2). Therefore, the designation of NASA Agency 
Ethics Officials currently at 14 CFR 1207.104 is being modified to 
include and identify ``Agency designees'' and is restated at section 
6901.102 of the NASA supplemental regulation.

Section 6901.103  Outside Employment

    5 CFR 2635.802 and 2635.803, respectively, authorize individual 
agencies, by supplemental regulation, to prohibit conflicting outside 
employment and to require employees to obtain approval before engaging 
in other outside employment or activities. The current NASA rules 
prohibiting outside employment with certain entities and requiring 
administrative approval for other particular employment activities have 
been in effect for many years and have served NASA well in avoiding 
violations of the standards of conduct and conflict of interest 
statutes and, thus, in ensuring public confidence in the integrity of 
NASA personnel and programs. Accordingly, the rules at 14 CFR 1207.300-
1207.306 have been modified form as Sec. 6901.103 of the NASA 
supplemental regulation.
    As permitted by 5 CFR 2635.802, NASA is issuing Sec. 6901.103(c) 
which sets forth prohibitions on non-Government employment that are 
substantially similar to those found in 14 CFR 1207.302(f). Prohibited 
employment listed in Sec. 6901.103(c) includes employment with a NASA 
contractor, subcontractor, or grantee, in connection with work 
performed by that entity for NASA, and employment with parties to 
certain classes of agreements to which NASA is a party, if the 
employment would be in connection with work to be performed under such 
an agreement. NASA has determined, in accordance with the standard set 
forth in 5 CFR 2635.403(a), that such outside employment by employees, 
other than special Government employees, would cause reasonable persons 
to question the impartiality and objectivity with which NASA programs 
are administered.
    As permitted by 5 CFR 2635.803, and based on its finding that the 
long-standing requirements for prior approval for certain categories of 
outside employment at 14 CFR 1207.306 has helped to ensure that 
employees' outside activities conform to applicable statutes and 
regulations, NASA has determined to continue to require prior approval 
for those outside employment activities that, by their nature, tend to 
raise questions under the Standards. Before engaging in specified 
categories of outside employment, with or without compensation, 
Sec. 6901.103(d) requires a NASA employee, other than a special 
Government employee, to obtain written approval from an appropriate 
agency official.
    ``Outside Employment'' is broadly defined at Sec. 6901.103(b)(2) to 
cover any form of non-Federal employment or business relationship 
involving the provision of personal services, including writing when 
done under an arrangement with another person for production or 
publication of the written product. It does not, however, include 
participation in the activities of nonprofit charitable, religious, 
professional, social, fraternal, and similar organizations, unless the 
organization is a prohibited source as defined in 5 CFR 2635.203(d), or 
unless such activities involve the provision of professional services 
or advice or are for compensation other than reimbursement for 
expenses. Sections 6901.103(f) and (g) set forth the requirements for 
submission and processing of a written request for approval.
    To ensure that section 6901.103 is not itself construed as 
authority to deny permission to engage in any outside employment 
activity, Sec. 6901.103(g)(3) states that approval will be granted 
unless it is determined that the prospective outside employment is 
expected to involve conduct prohibited by statute or Federal 
regulations, including 5 CFR part 2635 and this supplemental 
regulation.

III. Repeal of NASA Standards of Conduct

    Most of NASA's standards of conduct at 14 CFR part 1207 were 
superseded by the executive branch-wide financial disclosure 
regulations at 5 CFR part 2634 and by the ethical conduct standards at 
5 CFR part 2635. NASA is, therefore, repealing those portions of its 
existing standards of conduct regulation at 14 CFR part 1207 which were 
superseded by 5 CFR parts 2634 and 2635 or which will be superseded on 
the date of the current rulemaking by this NASA supplemental 
regulation. In the place of the superseded regulations, NASA is 
substituting cross-references to the new executive branch-wide 
regulations on ethical conduct and financial disclosure, the Office of 
Personnel Management provisions on employee responsibilities and 
conduct at 5 CFR part 735, and the NASA supplemental regulation. 
Consistent with 5 CFR 2635.402(d)(1), existing Sec. 1207.403 of 14 CFR 
is being preserved and redesignated as Sec. 1207.102, pending issuance 
by OGE of superseding regulatory waivers. Similarly, existing sections 
1207.800 and 1207.801 of 14 CFR, which provide guidance to former NASA 
employees who desire to communicate with NASA to provide scientific or 
technical information in accordance with 18 U.S.C. 207(j)(5), have no 
counterpart in the new Standards and are being retained and 
redesignated, with a couple of modifications to reflect the current 
post-Government employment law, as Secs. 1207.201 and 1207.202 of 14 
CFR.

IV. Matters of Regulatory Procedure

Administrative Procedure Act

    As Administrator of NASA, I have found that good cause exists under 
5 U.S.C. 553(b) and (d)(3) for waiving, as unnecessary and contrary to 
the public interest, the general notice of proposed rulemaking and the 
30-day delay in effectiveness as to these rules and repeals. The 
supplemental regulations are essentially similar to rules previously 
contained in NASA's standards of conduct, and I believe that it is 
important to a smooth transition from NASA's prior ethics rules to the 
new executive branch-wide Standards and financial disclosure 
regulations that these rulemaking actions take place as soon as 
possible. Furthermore, this rulemaking is related to NASA's 
organization, procedures, and practices.

Executive Order 12866

    In promulgating this final rule, NASA has adhered to the regulatory 
philosophy and the applicable principles of regulation set forth in 
Executive Order 12866, Regulatory Planning and Review. This regulation 
has been reviewed by the Office of Management and Budget under that 
Executive order.

Regulatory Flexibility Act

    As Administrator of NASA, I have determined under the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) that this regulation will not have 
a significant impact on small business entities because it affects only 
NASA employees.

Paperwork Reduction Act

    As Administrator of NASA, 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.

List of Subjects

5 CFR Part 6901

    Conflict of interests, Executive branch standards of conduct, 
Government employees.

14 CFR Part 1207

    Conflict of interests, Executive branch standards of conduct, 
Government employees.

    Dated: September 16, 1994.
Daniel S. Goldin,
Administrator, National Aeronautics and Space Administration.
    Approved: September 20, 1994.
Stephen D. Potts,
Director, Office of Government Ethics.

    For the reasons set forth in the preamble, the National Aeronautics 
and Space Administration, with the concurrence of the Office of 
Government Ethics, is amending title 5 of the Code of Federal 
Regulations and title 14, chapter V, of the Code of Federal 
Regulations, as follows:

TITLE 5--[AMENDED]

    1. A new chapter LIX, consisting of part 6901, is added to title 5 
of the Code of Federal Regulations to read as follows:

5 CFR CHAPTER LIX--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

PART 6901--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Sec.

6901.101  General.
6901.102  Designation of responsible officials.
6901.103  Outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 42 U.S.C. 203(c)(1); 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 2635.105, 2635.403(a), 2635.802(a), 
2635.803.


Sec. 6901.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the National Aeronautics and Space Administration 
(NASA) and supplement the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635. In addition to the 
standards in 5 CFR part 2635 and this part, employees are subject to 
the executive branch financial disclosure regulations contained in 5 
CFR part 2634, and to additional regulations regarding their conduct 
contained in 5 CFR part 735 and 14 CFR part 1207.


Sec. 6901.102   Designation of responsible officials.

    (a) Designated Agency Ethics Official. The General Counsel of NASA 
is the Designated Agency Ethics Official (DAEO) and as such has the 
responsibilities, authorities, and duties set forth in 5 CFR 2638.203.
    (b) Alternate Designated Agency Ethics Official. The Associate 
General Counsel (General) shall serve as the Alternate Designated 
Agency Ethics Official in accordance with 5 CFR 2638.202(b).
    (c) Deputy Ethics Officials. (1) The following officials are 
designated as NASA Deputy Ethics Officials pursuant to 5 CFR 
2638.202(b)(7):
    (i) Deputy General Counsel;
    (ii) Associate General Counsel (General);
    (iii) Senior Ethics Attorney assigned to the Associate General 
Counsel (General); and
    (iv) Chief Counsel at each NASA Field or Component Installation.
    (2) Deputy Ethics Officials may carry out responsibilities 
delegated to them through designated subordinates, but shall retain 
ultimate responsibility for the ethics functions assigned to them.
    (d) Agency Designee. As used in 5 CFR part 2635, the term ``Agency 
Designee'' at NASA refers to the following:
    (1) For employees at NASA Headquarters, the DAEO, the Alternate 
DAEO, or the Associate Administrator for Human Resources and Education; 
and
    (2) For employees at Field or Component Installations, the Director 
of the Installation, who may delegate specific responsibilities of the 
Agency Designee to the Installation's Chief Counsel or to another 
official who reports directly to the Director.


Sec. 6901.103   Outside employment.

    (a) General. A NASA employee shall not engage in outside employment 
prohibited by paragraph (c) of this section and shall obtain approval 
before engaging in the outside employment activities specified in 
paragraph (d) of this section.
    (b) Definitions. For purposes of this section:
    (1) Key official means an officer or employee, other than a special 
Government employee, who is required, in accordance with 5 CFR part 
2634, to file a public financial disclosure report or who holds a 
position as astronaut, astronaut candidate, procurement officer, or 
chief counsel.
    (2) Outside employment means any form of compensated or 
uncompensated non-Federal employment or business relationship involving 
the provision of personal services by the employee. It includes, but is 
not limited to, personal services as an officer, director, employee, 
agent, attorney, consultant, contractor, general partner, trustee, 
teacher, or speaker. It includes writing when done under an arrangement 
with another person for production or publication of the written 
product. It does not, however, include participation in the activities 
of a nonprofit charitable, religious, professional, social, fraternal, 
educational, recreational, public service, or civic organization, 
unless the organization is a prohibited source or unless such 
activities involve the provision of professional services or advice, or 
are for compensation other than reimbursement of expenses.
    (3) Profession has the meaning set forth in 5 CFR 2636.305(b)(1).
    (4) Prohibited source has the meaning set forth in 5 CFR 
2635.203(d).
    (c) Prohibited outside employment. A NASA employee, other than a 
special Government employee, shall not engage in outside employment 
with the following:
    (1) A NASA contractor, subcontractor, or grantee in connection with 
work performed by that entity for NASA; or
    (2) A party to a Space Act agreement, Commercial Launch Act 
agreement, or other agreement to which NASA is a party pursuant to 
specific statutory authority, if the employment is in connection with 
work performed under that agreement.
    (d) Prior approval for outside employment. A NASA employee, other 
than a special Government employee, shall request and obtain 
administrative approval before engaging in the following outside 
employment activities:
    (1) Teaching, speaking, writing, or editing, unless the subject 
matter pertains to the private interests of the employee, such as a 
hobby, cultural activity, or nonwork related professional pursuit;
    (2) The practice of a profession or the rendering of professional 
consulting services;
    (3) The management or conduct of a business in which the employee 
or the employee's spouse has an ownership interest;
    (4) Holding a State or local public office, whether by election or 
appointment;
    (5) Employment with a NASA contractor, subcontractor, or grantee;
    (6) Employment with a party to a Space Act agreement, Commercial 
Launch Act agreement, or other agreement to which NASA is a party 
pursuant to specific statutory authority;
    (7) Serving as an officer, trustee, or member of a board, 
directorate, or other such body of a for profit organization or of a 
nonprofit organization that is a prohibited source; or
    (8) Employment which involves the practice of a NASA-owned 
invention.
    (e) Prior approval requested by employee. Even when not required by 
paragraph (d) of this section, a NASA employee who is in doubt as to 
the propriety of outside employment or another outside activity may 
request prior approval using the procedures set forth in this section.
    (f) Form of request for approval. (1) A request for administrative 
approval of outside employment shall be in writing and shall include 
the following:
    (i) The employee's name and occupational title;
    (ii) The nature of the employment, including a full description of 
the specific duties or services to be performed;
    (iii) The name and address of the person or organization for which 
work will be done;
    (iv) The estimated total time that will be devoted to the activity. 
If the employment is on a continuing basis, indicate the estimated 
number of hours per year; for other employment, indicate the 
anticipated beginning and ending date;
    (v) A statement as to whether the work can be performed entirely 
outside of the employee's regular duty hours and, if not, the estimated 
number of hours of absence from work that will be required;
    (vi) The amount of compensation, if any, to be received; and
    (vii) A statement that the employee currently has no official 
duties involving a matter that affects the outside employer and will 
disqualify from future participation in matters that could directly 
affect the outside employer.
    (2) Locally prepared forms providing for collection of the 
information required by paragraph (f)(1) of this section may be used 
for submission of the request and subsequent approval or disapproval.
    (g) Approval of requests--(1) Key Officials. The Headquarters 
Associate Administrator for Human Resources and Education has authority 
to approve requests for approval of outside employment submitted by 
NASA Key Officials. Prior to approval or disapproval, Key Official 
requests shall be submitted to the appropriate Official-in-charge of 
the Headquarters Office or to the Director of the appropriate Field or 
Component Installation, who shall add a recommendation and forward the 
request through the General Counsel to the Associate Administrator.
    (2) Employees other than Key Officials. The appropriate Official-
in-Charge of a Headquarters Office, or the Director of a Field or 
Component Installation, or a person designated to act for the Director, 
has authority to approve requests for approval of outside employment 
submitted by employees other than NASA Key Officials. Prior to approval 
or disapproval:
    (i) Requests by NASA Headquarters personnel shall be submitted to 
and reviewed by the employee's supervisor and by the Office of the 
Associate General Counsel (General); and
    (ii) Requests by Field or Component Installation personnel shall be 
submitted to and reviewed by the employee's supervisor and by a Deputy 
Ethics Official or designee.
    (3) Standard for approval. Approval will be granted unless a 
determination is made that the prospective outside employment is 
expected to involve conduct prohibited by statute or Federal 
regulation, including 5 CFR part 2635 and this part.
    (4) Scope of approval. Approval will be for a period not to exceed 
3 years. Upon a significant change in the nature or scope of the 
outside employment or in the employee's NASA position, the employee 
shall submit a revised request for approval.
    (5) Notification of approval or disapproval. Employees will be 
notified in writing of the action taken on their requests.
    (6) Records of requests. All requests for approval will be 
maintained in the local Human Resources/Personnel Office for the 
duration of the requester's NASA employment.

14 CFR CHAPTER V--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

PART 1207--STANDARDS OF CONDUCT

    2. The authority citation for part 1207 is revised to read as 
follows:

    Authority: 5 U.S.C. 7301; 42 U.S.C. 203(c)(1).

    3. Subpart A of part 1207 is amended by removing Secs. 1207.100 and 
1207.102 through 1207.104, redesignating Sec. 1207.403 as Sec. 1207.102 
and revising Sec. 1207.101 to read as follows:


Sec. 1207.101  Cross-references to ethical conduct, financial 
disclosure, and other applicable regulations.

    Employees of the National Aeronautics and Space Administration 
(NASA) should refer to the executive branch-wide Standards of Ethnical 
Conduct at 5 CFR part 2635, the NASA regulation at 5 CFR part 6901 
which supplements the executive branch-wide standards with respect to 
prohibitions and prior approval requirements applicable to certain 
outside employment activities, the Office of Personnel Management 
provisions on employee responsibilities and conduct at 5 CFR part 735, 
and the executive branch-wide financial disclosure regulation at 5 CFR 
part 2634.
    4. In part 1207, subpart B, consisting of Secs. 1207.200 through 
1207.203; subpart C, consisting of Secs. 1207.300 through 1207.306; 
subparts E and F; and subpart G, consisting of Secs. 1207.700 through 
1207.704, are removed.
    5. In part 1207, subpart D, consisting of Secs. 1207.400 through 
1207.402, 1207.404, and 1207.405, is removed.
    6. In part 1207, subpart H, consisting of Secs. 1207.800 and 
1207.801 is redesignated as subpart B, consisting of Secs. 1207.201 and 
1207.202 respectively, and paragraph (a) of newly designated 
Sec. 1207.202 is amended by revising the reference in the introductory 
text to ``section 207(f)'' to read ``section 207(j)(5)'', and by 
revising the citation in paragraph (a)(1) to ``18 U.S.C. 207(a), (b), 
or (c)'' to read ``18 U.S.C. 207(a), (c), or (d)''.

[FR Doc. 94-23735 Filed 9-27-94; 8:45 am]
BILLING CODE 7510-01-P-M