[Federal Register Volume 61, Number 153 (Wednesday, August 7, 1996)] [Rules and Regulations] [Pages 40950-40952] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-19971] ======================================================================= ----------------------------------------------------------------------- OFFICE OF GOVERNMENT ETHICS 5 CFR Part 2635 RINs 3209-AA04, 3209-AA15 Further Grace Period Extension for Certain Existing Agency Standards of Conduct AGENCY: Office of Government Ethics (OGE). ACTION: Final rule; technical amendment. ----------------------------------------------------------------------- SUMMARY: The Office of Government Ethics is granting one further grandfathering grace period extension of just under three months for certain existing executive agency standards of conduct, dealing with regulatory financial interest prohibitions and prior approval for outside employment and activities, which have been temporarily preserved. This further action (three previous extensions have been granted) is necessary because some agencies still have not been able to issue, with OGE concurrence and co-signature, interim or final supplemental regulations during the prior grace periods. This further extension will help ensure that agencies which in conjunction with OGE are actively working on draft supplementals will have adequate time to issue, if they so desire, successor supplemental regulatory provisions to replace grandfathered financial interest prohibitions and prior approval requirements. EFFECTIVE DATE: August 7, 1996. FOR FURTHER INFORMATION CONTACT: William E. Gressman, Office of Government Ethics; telephone: 202-208-8000, extension 1110; FAX: 202- 208-8037. SUPPLEMENTARY INFORMATION: The Office of Government Ethics is granting, under the executive branch standards of ethical conduct, an extension of time until November 1, 1996 for certain [[Page 40951]] agencies' existing conduct standards dealing with regulatory prohibited financial interests and prior approval for outside employment and activities. When OGE published its ethical conduct standards for executive branch employees in the Federal Register on August 7, 1992 (as now codified at 5 CFR part 2635), it provided that most existing individual agency standards of conduct would be superseded once the executive branchwide standards took effect on February 3, 1993. However, OGE also provided, by means of notes following 5 CFR 2635.403(a) and 2635.803, that any existing agency standards dealing with the two types of restrictions noted above would be preserved for one year, until February 3, 1994, or until the agency concerned issued (with OGE concurrence and co-signature) a supplemental regulation, whichever occurred first. See 57 FR 35006-35067, as corrected at 57 FR 48557, 57 FR 52583 and 60 FR 51667. In February 1994, February 1995 and December 1995, OGE extended that original grace period for a total of some two and a half years, until August 7, 1996 (or until agency issuance of a supplemental regulation), for those executive branch departments and agencies that had not yet been able to issue final or interim final successor rules. See 59 FR 4779-4780 (February 2, 1994), 60 FR 6390-6391 (February 2, 1995) and 60 FR 66857-66858 (December 27, 1995), as well as appendixes A, B and C which were added to part 2635. Through OGE's liaison efforts, the Office of the Federal Register (OFR) has assigned new chapters, including parts, at the end of title 5 of the Code of Federal Regulations to accommodate agencies' future supplemental standards regulations (on these two and other appropriate subject areas), as well as any supplemental agency regulations under OGE's executive branchwide financial disclosure provisions at 5 CFR part 2634. Almost 60 agencies have had such chapters reserved, including those which have by now already issued, with OGE concurrence and co-signature, interim final or final supplemental ethics regulations. However, some agencies have still not issued their planned supplemental standards regulations in interim or final form. The Office of Government Ethics has therefore determined to permit a further preservation of existing agency regulatory standards of conduct provisions described above until November 1, 1996 (or until issuance by each agency listed of its supplemental regulation, whichever comes first), for those agencies which are actively working in conjunction with OGE on draft supplemental standards regulations. The agencies subject to this further grandfathering grace period extension, as provided in the notes (which are hereby being further amended) following 5 CFR 2635.403(a) and 2635.803, are enumerated at new appendix D which OGE is adding to part 2635. The agencies are listed in the order of the assignment of their chapter numbers at the end of 5 CFR. Agencies not listed either have not expressed an interest in issuing supplemental agency ethics regulations, have indicated to OGE that they are no longer interested in a further grace period extension, or have already issued final or interim final supplemental standards. The agencies listed should take advantage of this final further extension to complete the issuance, with OGE concurrence and co-signature, of replacement regulations for grandfathered provisions which otherwise will be superseded this fall at the end of this extension. The Office of Government Ethics does note that it is not by this rulemaking, which only affects grandfathered provisions, setting a deadline for agencies to submit supplemental ethics regulations. Agencies can, with OGE concurrence and co-signature, issue supplementals at any time. Further, they can, at any time, have new title 5 CFR chapters reserved through OGE and OFR for such purpose if they have not already done so. Moreover, if an agency's prohibited financial interest (and/or prior approval) restrictions are based on specific authority independent of 5 CFR part 2635, they are not superseded by the 5 CFR part 2635 executive branchwide standards. If any related regulatory provisions were located in its old agency standards of conduct, the agency concerned could, after consultation with OGE, retain them in their existing place in the agency's own CFR title and chapter or move the provisions to another appropriate part of its regulations. See 5 CFR 2635.105(c)(3). Administrative Procedure Act Pursuant to 5 U.S.C. 553(b) and (d), as Deputy Director of the Office of Government Ethics, I find good cause exists for waiving the general notice of proposed rulemaking and 30-day delay in effectiveness as to this further grace period extension. The notice and delayed effective date are being waived because this rulemaking concerns a matter of agency organization, practice and procedure. Furthermore, it is in the public interest that those agencies concerned have adequate time to promulgate successor provisions to their existing standards of conduct regulations in these two areas without a lapse in necessary regulatory restrictions. Executive Order 12866 In promulgating this grace period extension technical amendment, the Office of Government Ethics 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 amendment has not been reviewed by the Office of Management and Budget under that Executive order, as it is not deemed ``significant'' thereunder. Regulatory Flexibility Act As Deputy Director of the Office of Government Ethics, I certify under the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this rulemaking will not have a significant economic impact on a substantial number of small entities because it primarily affects executive branch departments and agencies and their employees. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply because this rulemaking does not contain information collection requirements that require the approval of the Office of Management and Budget. List of Subjects in 5 CFR Part 2635 Conflict of interests, Government employees. Approved: August 1st, 1996. F. Gary Davis, Deputy Director, Office of Government Ethics. Accordingly, pursuant to its authority under title IV of the Ethics in Government Act and Executive Order 12674/12731, the Office of Government Ethics is amending 5 CFR part 2635 as follows: PART 2635--[AMENDED] 1. The authority citation for part 2635 continues to read as follows: Authority: 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. 2. The notes following both Secs. 2635.403(a) and 2635.803 are amended by adding a new sentence at the end of each to read as follows: Note: * * * Provided still further, that for those agencies listed in appendix D to this part, the grace period for any such existing [[Page 40952]] provisions shall be further extended until November 1, 1996 or until issuance by each individual agency concerned of a supplemental regulation, whichever occurs first. 3. A new appendix D is added at the end of part 2635 to read as follows: Appendix D to Part 2635--Agencies Entitled to Another Further (Fourth) Grace Period Extension Pursuant to Notes Following Secs. 2635.403(a) and 2635.803 1. Department of the Treasury 2. Federal Energy Regulatory Commission 3. Department of the Interior 4. Department of Commerce 5. Department of Justice 6. Federal Communications Commission 7. Securities and Exchange Commission 8. United States Information Agency 9. Occupational Safety and Health Review Commission 10. Department of State 11. Department of Labor 12. National Science Foundation 13. Small Business Administration 14. Department of Transportation 15. National Transportation Safety Board 16. General Services Administration 17. Board of Governors of the Federal Reserve System 18. National Labor Relations Board 19. Peace Corps 20. Consumer Product Safety Commission 21. Executive Office of the President 22. Department of Agriculture 23. Agency for International Development 24. Social Security Administration [FR Doc. 96-19971 Filed 8-6-96; 8:45 am] BILLING CODE 6345-01-P