[Federal Register Volume 61, Number 88 (Monday, May 6, 1996)]
[Rules and Regulations]
[Pages 20117-20119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10940]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 88 / Monday, May 6, 1996 / Rules and 
Regulations  

[[Page 20117]]



TENNESSEE VALLEY AUTHORITY

5 CFR Chapter LXIX

18 CFR Part 1300


Supplemental Standards of Ethical Conduct for Employees of the 
Tennessee Valley Authority

AGENCY: Tennessee Valley Authority (TVA).

ACTION: Final rule.

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SUMMARY: The Tennessee Valley Authority, with the concurrence of the 
Office of Government Ethics (OGE), is issuing regulations for employees 
of TVA that supplement the Standards of Ethical Conduct for Employees 
of the Executive Branch (Standards) issued by OGE by adding a 
requirement to obtain prior approval for outside employment. By this 
final rule, TVA also is repealing those sections of its existing 
conduct standards that are superseded by the new Standards as 
supplemented by this final rule and by the executive branch financial 
disclosure regulations inserting in their place a cross-reference to 
the new 5 CFR provisions, and reissuing those provisions in the TVA 
conduct standards which have not been superseded.

EFFECTIVE DATE: May 6, 1996.

FOR FURTHER INFORMATION CONTACT:
William L. Osteen, Designated Agency Ethics Official, 423-632-4142, FAX 
423-632-2422.

SUPPLEMENTARY INFORMATION:

I. Background

    On August 7, 1992, OGE published new Standards of Ethical Conduct 
for Employees of the Executive Branch (Standards). See 57 FR 35006-
35067, as corrected at 57 FR 48557 and 57 FR 52583, with additional 
grace period extensions at 59 FR 4779-4780 and 60 FR 6390-6391. 
Codified at 5 CFR part 2635, the new standards became effective on 
February 3, 1993.
    With the concurrence of OGE, 5 CFR 2635.105 authorizes executive 
branch agencies to publish agency-specific supplemental regulations 
that are necessary to implement their respective ethics programs. TVA, 
with OGE's concurrence, has determined that the following supplemental 
rules, being codified in new chapter LXIX of 5 CFR, are necessary to 
the success of its ethics program. Simultaneously, TVA is repealing 
superseded provisions of 18 CFR part 1300, replacing those provisions 
with a section that provides cross-references to 5 CFR parts 2634 and 
2635 and to TVA's new supplemental regulations, and reissuing existing 
provisions of 18 CFR part 1300 which have not been superseded.

II. Analysis of the Regulations

Section 7901.101  General

    Section 7901.101 explains that these regulations supplement the 
executive branch-wide Standards and reminds TVA employees that they are 
subject to the Standards and to the executive branch-wide financial 
disclosure regulations, in addition to these regulations.

Section 7901.102  Prior Approval for Outside Employment

    Where it is determined to be necessary or desirable for the purpose 
of administering its ethics program, 5 CFR 2635.803 authorizes an 
individual agency to issue supplemental regulations requiring agency 
employees to obtain prior approval before engaging in outside 
employment. TVA has for many years had a prior approval requirement, 
expressed partly in TVA conduct standards at 18 CFR 1300.735-13(b) and 
partly in uncodified instructions. Based on its findings that this 
requirement has helped ensure that employees' outside employment 
conforms to applicable statutes and regulations, TVA has determined 
that continuing this requirement is necessary for the purpose of its 
ethics program. Paragraph (a) clarifies that the outside employment, 
except for Special Government Employees, must be approved by the 
employee's supervising TVA vice president or designee. The employee is 
required to request approval in writing, describing the organizations, 
duties, hours of work, and remuneration pertaining to the outside 
employment. Paragraph (b) clarifies the standard for review and 
approval. To ensure that Sec. 7901.102 is not in itself construed as 
authority to totally prohibit outside employment, Sec. 7901.102(b) 
states that approval will be granted only upon a determination that the 
prospective outside employment is not expected to involve conduct 
prohibited by statute or Federal regulations, including 5 CFR part 
2635. Paragraph (c) is intended to foster efficient administration by 
allowing exclusion from the approval requirement for classes of 
employees as to which outside employment is unlikely to raise issues of 
compliance with 5 CFR part 2635. Paragraph (d) adds a definition of 
employment for purposes of applying the requirement for prior approval 
set forth in paragraph (a) of the section.

III. Repeal of Superseded TVA Standards of Conduct Regulations

    The Tennessee Valley Authority is repealing those sections of its 
standards of conduct regulations at 18 CFR part 1300 which have been 
superseded by the OGE regulations at 5 CFR parts 2634 or 2635 or by the 
TVA's supplemental regulations at new 5 CFR 7901 made effective by this 
final rule. To ensure that employees are on notice of the ethical 
standards to which they are subject, TVA is replacing the superseded 
standards at 18 CFR part 1300 with a provision that cross-references 5 
CFR parts 2634, 2635, and 7901. To accommodate the removal of 
superseded provisions. TVA is renumbering and reissuing existing 
sections of 18 CFR part 1300 dealing with gambling, harassment, and 
conduct prejudicial to the Government which have not been superseded. 
The Office of Government Ethics (OGE) concurs in the reissuance of 
these regulations only insofar as it has determined that the substance 
of new 18 CFR 1300.102-1300.107 need not be issued as part of TVA's 
supplemental regulations at 5 CFR part 7901. Pursuant to 5 CFR 
2635.402(d), TVA is also renumbering and reissuing, with a revised 
heading, its regulatory waivers at 18 CFR 1300.734-14(c) which were 
issued under the authority of 18 U.S.C. 208(b)(2); it is anticipated 
that these waivers will be superseded in the future by new OGE 
regulations. See 60 FR

[[Page 20118]]

44706-44709 (August 28, 1995) and 60 FR 47208-47233 (September 11, 
1995).

IV. Matters of Regulatory Procedure

Administrative Procedure Act

    TVA has 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 a restatement of rules previously contained 
in the standards of conduct, and TVA believes that it is important to a 
smooth transition from TVA standards of conduct to the Executive branch 
standards that these rules become effective as soon as possible. 
Furthermore, this rulemaking is related to TVA organization, procedure, 
and practice.

Regulatory Flexibility Act

    TVA has determined under the Regulatory Flexibility Act (5 U.S.C. 
chapter 6) that these regulations will not have a significant impact on 
small business entities because they affect only TVA employees.

Paperwork Reduction Act

    TVA has determined that the Paperwork Reduction Act (44 U.S.C. 
chapter 35) does not apply because these regulations do not contain any 
information collection requirements that require the approval of the 
Office of Management and Budget.

Environmental Impact

    This decision will not have a significant impact upon the quality 
of the human environment or the conservation of energy resources

List of Subjects

5 CFR Part 7901

    Conflict of interests, Government employees.

18 CFR Part 1300

    Government employees.

    Dated: April 5, 1996.
William L. Osteen,
Associate General Counsel and Designated Agency Ethics Official, 
Tennessee Valley Authority.

    Approved: April 12, 1996.
Stephen D. Potts,
Director, Office of Government Ethics.

    For the reasons set forth in the preamble, the Tennessee Valley 
Authority, with the concurrence of the Office of Government Ethics, is 
amending title 5 of the Code of Federal Regulations and title 18, 
chapter XIII of the Code of Federal Regulations as follows:

TITLE 5--[AMENDED]

    1. A new chapter LXIX, consisting of part 7901, is added to title 5 
of the Code of Federal Regulations to read as follows:

CHAPTER LXIX--TENNESSEE VALLEY AUTHORITY

PART 7901--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE TENNESSEE VALLEY AUTHORITY

Sec.
7901.101  General.
7901.102  Prior approval for outside employment.

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 16 
U.S.C. 831-831dd; 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, 2635.803.


Sec. 7901.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Tennessee Valley Authority (TVA) and 
supplement the Standards of Ethical Conduct for Employees of the 
Executive Branch contained in 5 CFR part 2635. In addition, some TVA 
employees are subject to the executive branch financial disclosure 
regulations at 5 CFR part 2634.


Sec. 7901.102  Prior approval for outside employment.

    (a) Before engaging in outside employment, with or without 
compensation, an employee, other than a special Government employee, 
must obtain written approval from the supervising TVA vice president or 
designee. The written request shall be submitted through the employee's 
supervisor or human resource office and shall, at a minimum, identify 
the employer or other person for whom the services are to be provided, 
as well as the duties, hours of work, and compensation involved in the 
proposed outside employment.
    (b) Approval under paragraph (a) of this section shall be granted 
only upon a determination that the outside employment is not expected 
to involve conduct prohibited by statute or Federal regulation, 
including 5 CFR part 2635.
    (c) Vice presidents or other officers of TVA may, after 
consultation with the Designated Agency Ethics Official, exempt 
specified classes of employees from this section based upon a 
determination that the official duties of employees in the class are 
such that their outside employment activities are not likely to raise 
issues of compliance with 5 CFR part 2635.
    (d) For purposes of this section, employment means any form of non-
Federal employment or business relationship involving the provision of 
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 such 
activities involve the provision of professional services or advice or 
are for compensation other than reimbursement for actual expenses.
18 CFR CHAPTER XIII--TENNESSEE VALLEY AUTHORITY
    2. Part 1300 is revised to read as follows:

PART 1300--STANDARDS OF CONDUCT FOR EMPLOYEES OF TENNESSEE VALLEY 
AUTHORITY

Sec.
1300.101  Cross reference to employee ethical conduct standards and 
other applicable regulations.
1300.102  Gambling, betting, and lotteries.
1300.103  General conduct prejudicial to TVA.
1300.104  Sexual harassment.
1300.105  National origin harassment.
1300.106  Harassment on the basis of race, color, religion, age, or 
disability.
1300.107  Financial interest exemptions.

    Authority: 16 U.S.C. 831-831dd; 18 U.S.C. 208(b)(2).


Sec. 1300.101  Cross references to employee ethical conduct standards 
and other applicable regulations.

    Employees of the Tennessee Valley Authority (TVA) are subject to 
the executive branch-wide standards of ethical conduct at 5 CFR part 
2635 and to the TVA regulations at 5 CFR part 7901 which supplement the 
executive branch-wide standards. In addition, certain TVA employees are 
subject to executive branch-wide financial disclosure regulations at 5 
CFR part 2634.


Sec. 1300.102   Gambling, betting, and lotteries.

    An employee shall not participate, while on Government- or TVA-
owned or leased property or while on TVA duty, in any gambling activity 
including the operation of a gambling device, in

[[Page 20119]]

conducting a lottery or pool, in a game for money or property, or in 
selling or purchasing a numbers slip or ticket. However, this section 
does not preclude activities:
    (a) Necessitated by an employee's law enforcement duties; or
    (b) Under section 7 of Executive Order 12353 (47 FR 12785, 3 CFR, 
1982 Comp., p. 139) and similar TVA-approved activities.


Sec. 1300.103  General conduct prejudicial to TVA.

    An employee shall not engage in criminal, infamous, dishonest, 
immoral, or notoriously disgraceful conduct, or other conduct 
prejudicial to TVA.


Sec. 1300.104   Sexual harassment.

    It is TVA policy that all TVA employees are responsible for 
assuring that the workplace is free from sexual harassment. 
Accordingly, all employees must avoid any action or conduct which could 
be viewed as sexual harassment including:
    (a) Unwelcome sexual advances;
    (b) Requests for sexual favors; and
    (c) Other verbal or physical conduct of a sexual nature when:
    (1) Submission to such conduct is made either explicitly or 
implicitly a term or condition of an individual's employment;
    (2) Submission to or rejection of such conduct by an individual is 
used as the basis for employment decisions affecting such individual; 
or
    (3) Such conduct has the purpose or effect of unreasonably 
interfering with an individual's work performance or creating an 
intimidating, hostile, or offensive working environment.


Sec. 1300.105   National origin harassment.

    It is TVA policy that all TVA employees are responsible for 
assuring that the workplace is free from national origin harassment. 
Accordingly, all employees must avoid any action or conduct which could 
be viewed as national origin harassment, including ethnic slurs and 
other verbal or physical conduct relating to an individual's national 
origin when such conduct:
    (a) Has the purpose or effect of creating an intimidating, hostile, 
or offensive working environment;
    (b) Has the purpose or effect of unreasonably interfering with an 
individual's work performance; or
    (c) Otherwise adversely affects an individual's employment 
opportunities.


Sec. 1300.106   Harassment on the basis of race, color, religion, age, 
or disability.

    It is TVA policy that all TVA employees are responsible for 
assuring that the workplace is free from harassment on the basis of 
race, color, religion, age, or disability. Accordingly, all employees 
must avoid any action or conduct which could be viewed as harassment on 
these bases, including any verbal or physical conduct relating to an 
individual's race, color, religion, age, or disability when such 
conduct:
    (a) Has the purpose or effect of creating an intimidating, hostile, 
or offensive working environment;
    (b) Has the purpose or effect of unreasonably interfering with an 
individual's work performance; or
    (c) Otherwise adversely affects an individual's employment 
opportunities.


Sec. 1300.107   Financial interest exemptions.

    In accordance with the provisions of 18 U.S.C. 208(b)(2), TVA has 
exempted the following financial interests of its employees from the 
requirements of 18 U.S.C. 208(a) upon the ground that such interests 
are too remote or too inconsequential to affect the integrity of such 
employees' services. When any of the following exemptions applies only 
to a limited range of official actions, rather than all official acts, 
the range of actions will be specified within the language of the 
exemption.
    (a) An investment in a business enterprise in the form of ownership 
of bonds, notes, and other evidences of indebtness which are not 
convertible into shares of preferred or common stock and have no 
warrants attached entitling the holder to purchase stock provided that 
the estimated market value of the interest does not exceed $5,000;
    (b) An investment in the form of shares in the ownership of 
enterprises, including preferred and common stocks whether voting or 
nonvoting, or warrants to purchase such shares, or evidences of 
indebtedness convertible into such shares provided that the estimated 
market value of the interest does not exceed $5,000 and does not exceed 
1 percent of the estimated market value of all the outstanding shares 
of the enterprise;
    (c) Shares or investments in a well-diversified money market or 
mutual fund;
    (d) Vested interests in a pension fund arising out of former 
employment and to which no further contributions are being made in the 
employee's behalf, provided that, if the pension plan is a defined 
benefit plan, the assets of the plan are diversified. For the purpose 
of this provision, payments are not considered to be made ``in the 
employee's behalf'' if they are made solely to maintain adequate plan 
funding rather than to provide specific benefits for the employee; or
    (e) The interest an employee has by virtue of his or her personal 
or family use of electric power or through his or her interests in an 
organization using electric power generated or distributed by TVA, for 
purposes of his or her official actions at TVA in the process of 
developing or approving TVA power rate schedules.

[FR Doc. 96-10940 Filed 5-3-96; 8:45 am]
BILLING CODE 8120-01-M