[Federal Register Volume 61, Number 241 (Friday, December 13, 1996)]
[Rules and Regulations]
[Pages 65457-65459]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31591]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 241 / Friday, December 13, 1996 / 
Rules and Regulations  

[[Page 65457]]



CONSUMER PRODUCT SAFETY COMMISSION

5 CFR Chapter LXXI

16 CFR Part 1030

RIN 3209-AA15


Supplemental Standards of Ethical Conduct for Employees of the 
Consumer Product Safety Commission

AGENCY: Consumer Product Safety Commission (CPSC).

ACTION: Final rule.

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SUMMARY: The Consumer Product Safety Commission, with the concurrence 
of the Office of Government Ethics (OGE), is issuing regulations for 
CPSC employees that supplement the Standards of Ethical Conduct for 
Employees of the Executive Branch issued by OGE. These supplemental 
regulations address outside employment by CPSC employees. The CPSC is 
also revoking its existing agency employee conduct regulations which 
addressed outside employment by CPSC employees.

EFFECTIVE DATE: December 13, 1996.

FOR FURTHER INFORMATION CONTACT:
Richard W. Allen, Assistant General Counsel for General Law, Consumer 
Product Safety Commission, Washington, DC 20207; telephone (301) 504-
0980, extension 2212.

SUPPLEMENTARY INFORMATION:

I. Background

    On August 7, 1992 the Office of Government Ethics (OGE) published 
the Standards of Ethical Conduct for Employees of the Executive Branch 
(the Standards). See 57 FR 35006-35067, as corrected at 57 FR 48557 and 
52583 and 60 FR 51667, and amended at 61 FR 42965-42970 (as corrected 
at 61 FR 48733) and 61 FR 50689-50691, with additional grace period 
extensions at 59 FR 4779-4780, 60 FR 6390-6391 and 66857-66858, and 61 
FR 40950-40952. The Standards, codified at 5 CFR part 2365, became 
effective February 3, 1993, and established uniform standards of 
ethical conduct applicable to personnel of all executive branch 
agencies.
    Section 2635.105 of the Standards authorizes executive agencies, 
with the concurrency of OGE, to publish agency-specific supplemental 
regulations that are necessary to implement their ethics programs. The 
CPSC, with OGE's concurrence, has determined that the following 
supplemental regulations are necessary for successful implementation of 
the CPSC ethics program. By this notice, CPSC is also revoking its old 
conduct regulations as codified at 16 CFR part 1030, subpart D and 
adding a single section in subpart A, previously reserved, that 
provides cross-references to 5 CFR parts 735, 2634 and 2635, as well as 
to the CPSC's new supplemental regulation and, for CPSC Commissioners, 
to the statutory provisions of 15 U.S.C. 2053(c).

II. Analysis of the Regulations

Section 8101.101  General

    Section 8101.101(a) explains that the regulations apply to all CPSC 
employees and supplement the standards of ethical conduct which are 
applicable to all executive branch personnel.

Section 8101.102  Prohibitions Applicable to Commissioners

    This section references and summarizes the statutory prohibitions 
on outside employment applicable to the CPSC Commissioners is Section 
4(c) of the Consumer Product Safety Act, 15 U.S.C. 2053(c).

Section 8101.103  Prior Approval for Outside Employment

    Sections 2635.803 of the Standards authorizes agencies to issue 
supplemental regulations requiring employees to obtain prior approval 
before engaging in outside employment. The CPSC has long required 
employees to obtain prior written approval before engaging in outside 
employment or activities. Provisions of the now superseded CPSC 
regulations codifies at 16 CFR part 1030, subpart D, have required CPSC 
employees to obtain advance approval for outside employment since those 
regulations were issued in 1976. The CPSC has found this requirement 
useful in ensuring that the outside employment of employees conform 
with all applicable laws and regulations and had determined that it is 
necessary to the administration of its ethics program that employees 
now continue to obtain prior approval before engaging in outside 
employment.
    Therefore, section 8101.103(a) of the supplemental regulations 
reinstates the requirement for prior approval of outside employment of 
CPSC employees other than special Government employees.
    Section 8101.103(b) sets forth the criteria to be used in approving 
or denying requests for approval of outside employment.
    Section 8101.103(c) provides that employees will be notified in 
writing of the action taken on their requests and that all requests 
will be maintained in the Designated Agency Ethics Official's files.
    Section 8101.103(d) states that approvals will be for a period of 
up to two years. An employee must submit a new request for approval two 
years after the date of approval, when the scope of the approved 
activity changes, or when the employee's position changes, whichever 
occurs first.
    Section 8101.103(e) defines the term ``employment'' and describes 
the circumstances in which prior approval must be obtained.

III. Repeal of Existing CPSC Outside Employment Regulations and 
Addition of Cross-References

    The CPSC is repealing its recently superseded conduct regulations 
governing outside activities, codified at 16 CFR part 1030, subpart D--
Outside Employment and Other Activities. Other portions of the CPSC 
regulations governing CPSC employees' responsibilities and conduct in 
16 CFR Part 1030 were previously superseded when the executive branch 
wide Standards of Ethical Conduct at 5 CFR part 2635 became generally 
effective in February 1993 and were repealed by the CPSC. See 58 FR 
12335 (March 4, 1993).
    At this time, the CPSC is also issuing a residual provision at 16 
CFR part 1030, subpart A, to cross-reference the executive branch-wide 
Standards, this supplemental regulation, the executive branch-wide 
financial disclosure regulations at 5 CFR part 2634 and, for CPSC 
Commissioners, the statutory

[[Page 65458]]

provisions of section 4(c) of the Consumer Product Safety Act, 15 
U.S.C. 2053(c). The CPSC will also leave in 16 CFR part 1030, subpart 
M, the existing rules of conduct required by the Privacy Act of 1974, 
at 5 U.S.C. 552 a(e)(9). Subparts B-L of part 1030 are reserved.

IV. Matters of Regulatory Procedure

    Generally, the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requires agencies to publish a notice of proposed rulemaking and 
provide opportunity for public comment before issuing or revoking 
regulations. However, the APA provides at 5 U.S.C. 553(b)(B) that the 
requirement for a notice of proposed rulemaking is not applicable when 
the agency finds for good cause that notice of proposed rulemaking and 
public participation are ``impracticable, unnecessary, or contrary to 
the public interest.''
    The CPSC finds for good cause that notice of proposed rulemaking 
and public participation are unnecessary because the CPSC is 
essentially reissuing existing regulations in a different form; the 
regulations pertain wholly to internal agency personnel matters; and 
they affect only CPSC employees. Furthermore, it is in the public 
interest that these CPSC supplemental ethics rules become effective as 
soon as possible.
    The APA also requires at 5 U.S.C. 553(d) that a substantive rule 
must be published at least 30 days before its effective date unless the 
agency finds for good cause that such delay is not needed. Again, 
because the CPSC is essentially reissuing prior longstanding 
requirements, the CPSC finds for good cause that a delayed effective 
date is unnecessary. Consequently, this amendment and revocation shall 
become effective immediately.

List of Subjects

5 CFR Part 8101

    Conflict of interests, Government employees.

16 CFR Part 1030

    Conflict of interests, Government employees, Privacy.

    Dated: November 22, 1996.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.

    Approved: December 5, 1996.
Stephen D. Potts,
Director, Office of Government Ethics.

    For the reasons set forth above, the Consumer Product Safety 
Commission, with the concurrence of the Office of Government Ethics, is 
amending title 5 and title 16 of the Code of Federal Regulations as 
follows:

TITLE 5--[AMENDED]

    1. A new chapter LXXI, consisting of part 8101, is added to title 5 
of the Code of Federal Regulations to read as follows:
CHAPTER LXXI--CONSUMER PRODUCT SAFETY COMMISSION

PART 8101--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE CONSUMER PRODUCT SAFETY COMMISSION

Sec.
8101.101  General.
8101.102  Prohibitions applicable to Commissioners.
8101.103  Prior approval for outside employment.

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 15 U.S.C. 2053(c); E.O. 12674, 54 FR 15139, 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. 8101.101  General.

    In accordance with 5 CFR 2635.105, the regulations in this part 
apply to employees of the Consumer Product Safety Commission (CPSC). 
These regulations supplement the Standards of Ethical Conduct for 
Employees of the Executive Branch contained in 5 CFR part 2635.


Sec. 8101.102  Prohibitions applicable to Commissioners.

    The Commissioners of the Consumer Product Safety Commission are 
subject to section 4(c) of the Consumer Product Safety Act, 15 U.S.C. 
2053(c). That statutory provision provides that a Commissioner may not 
engage in any other business, vocation, or employment.


Sec. 8101.103  Prior approval for outside employment.

    (a) Prior approval requirement. Before engaging in any outside 
employment, with or without compensation, an employee, other than a 
special Government employee. shall obtain prior written approval from 
his or her supervisor and the Designated Agency Ethics Official (DAEO) 
or Alternate DAEO. The Request for Approval of Outside Activity (CPSC 
Form 241), available from the DAEO or unit administrative officer, may 
be used to request approval. Requests for approval shall be forwarded 
through normal supervisory channels.
    (b) Standard of approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by Federal statute or regulation, including 5 CFR 
part 2635.
    (c) Notification of action. Employees will be notified in writing 
of the action taken on their requests. All requests will be maintained 
in the files of the Designated Agency Ethics Official for the duration 
of the requester's CPSC employment.
    (d) Duration and scope of approval. Approval will be for a period 
not to exceed two years, after which renewal approval must be sought. 
An employment must submit a new request for approval after two years or 
earlier upon either a significant change in the nature or scope of the 
outside employment or a change in the employee's CPSC position.
    (e) Definition of employment. For purposes of this section, 
``employment'' means any form of non-Federal employment, business 
relationship or activity involving the provision of personal services 
by the employee, whether or not for compensation. Employment includes, 
but is not limited to, personal services as an officer, director, 
employee, agent, attorney, consultant, contractor, general partner, 
trustee, teacher or speaker. Employment also includes writing when done 
under an arrangement with another person for production or publication 
of the written product. Employment does not, however, include 
participation in the activities of a nonprofit charitable, religious, 
professional, social, fraternal, educational, recreational, public 
service, consumer or civic organization, unless such activities are for 
compensation other than reimbursement for expenses or involve the 
provision of professional services or advice to, or serving as an 
officer, trustee, or member of a board or other such body of, an 
organization that is a prohibited source as defined in 5 CFR 
2635.203(d).

TITLE 16--[AMENDED]

CHAPTER II--CONSUMER PRODUCT SAFETY COMMISSION

PART 1030--EMPLOYEE STANDARDS OF CONDUCT--[AMENDED]

    2. The authority citation for part 1030 is revised to read as 
follows:

    Authority: 5 U.S.C. 552a, 7301; 15 U.S.C. 2053(c).

    3. Subpart A, previously reserved, is added to read as follows:

Subpart A--General


Sec. 1030.101  Cross-references to employee ethical conduct standards 
and financial disclosure regulations.

    Employees of the Consumer Product Safety Commission are subject to 
the

[[Page 65459]]

Standards of Ethical Conduct, 5 CFR part 2635, which are applicable to 
all executive branch personnel; the CPSC regulations at 5 CFR part 
8101, which supplement the executive branch standards; the Office of 
Personnel Management regulations on employee conduct at 5 CFR part 735; 
and the financial disclosure regulations at 5 CFR part 2634, which are 
applicable to all executive branch personnel. In addition, the 
Commissioners of the CPSC are subject to the statutory provisions of 15 
U.S.C. 2053(c).

Subpart D--[Removed]

    4. Subpart D is removed and reserved.

[FR Doc. 96-31591 Filed 12-12-96; 8:45 am]
BILLING CODE 6355-01-M