[Federal Register Volume 62, Number 121 (Tuesday, June 24, 1997)]
[Rules and Regulations]
[Pages 33972-33977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16409]


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OFFICE OF GOVERNMENT ETHICS

5 CFR Part 2634

RIN 3209-AA00


Executive Branch Financial Disclosure, Qualified Trusts, and 
Certificates of Divestiture

AGENCY: Office of Government Ethics (OGE).

ACTION: Final rule.

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SUMMARY: The Office of Government Ethics is amending the regulation 
governing confidential financial disclosure for executive branch 
employees, to update the standardized confidential disclosure report 
form's designation as OGE Form 450, which is replacing the Standard 
Form (SF) 450; and to provide authority for all executive branch 
agencies to adopt and use a standardized certificate of no new 
interests (OGE Optional Form 450-A) as an alternative procedure in lieu 
of OGE Form 450, for regular employee annual confidential disclosure 
filers who can make the required certifications.

EFFECTIVE DATE: July 24, 1997.

FOR FURTHER INFORMATION CONTACT: G. Sid Smith, Associate General 
Counsel, Office of Government Ethics; telephone: 202-208-8000; TDD: 
202-208-8025; FAX: 202-208-8037.

SUPPLEMENTARY INFORMATION:

I. Background

    On January 15, 1997, the Office of Government Ethics (OGE) 
published a proposed amendment to the confidential financial disclosure 
regulation for the executive branch, to modify 5 CFR 2634.601 and 
2634.905. See 62 FR 2048-2052. Five departments and agencies submitted 
written comments that suggested modifications to the proposed 
amendment, and two submitted letters concurring in the amendment as 
proposed. After considering those comments, as discussed below, OGE has 
made some clarifying and corrective changes to the rule as proposed and 
to the draft OGE Optional Form 450-A, in adopting them as final. We are 
publishing the amended proposal herewith as a final rule, effective 
July 24, 1997.
    The amendment to 5 CFR 2634.601 reflects the standardized 
confidential disclosure form's revision and redesignation in 1996 as 
OGE Form 450. A camera-ready copy of that form was distributed by OGE 
on February 27, 1996, to all designated agency ethics officials, for 
local copying and gradual phase-in as a replacement for the Standard 
Form (SF) 450. As indicated in the proposed rule, Paperwork Reduction 
Act clearance for the outdated SF 450 will expire on August 31, 1997, 
after which that form is no longer usable. This amended section also 
references the new OGE Optional Form 450-A which the amendment to 
Sec. 2634.905 authorizes, as discussed below.
    The amendment to 5 CFR 2634.905 exercises OGE's authority under 
current Sec. 2634.905(c) of the regulation to approve, in writing, 
alternative procedures for confidential disclosure, which in this 
instance is being accomplished through the regulatory process with a 
new Sec. 2634.905(d). That new subsection authorizes all executive 
branch agencies to permit the use of a standardized certificate of no 
new interests as an alternative procedure in lieu of filing OGE Form 
450, for annual confidential disclosure filers (other than special 
Government employees) who can make the required certifications and who 
choose to use this method. That standardized certificate has been 
designated as OGE Optional Form 450-A. Users must certify that they 
(and their spouse and dependent children) have acquired no new 
reportable financial interests since filing their most recent previous 
OGE Form 450 (which they must first reexamine), and that they have not 
changed jobs (no new position description or other significant change 
in duties) at their agency since filing that previous report.
    A form similar to the new OGE Optional Form 450-A was tested by a 
Cabinet-level department in 1995, which yielded highly favorable 
results. Following that test, OGE obtained comments from ethics 
officials throughout the executive branch by means of a written survey 
and a focus group. The general consensus of opinions expressed through 
these information-gathering efforts established the basis for the new 
OGE Optional Form 450-A and the procedures for its use, as outlined in 
this regulatory amendment. For those agencies that decide to permit 
filers to use OGE Optional Form 450-A, this alternative to an annual 
OGE Form 450 should help ease the administrative burden for both filers 
and ethics officials, while preserving general uniformity and

[[Page 33973]]

continuing to guard against conflicts of interest.

II. Analysis of Comments to the Proposed Amendments

    Only five departments and agencies (hereinafter referred to 
generally as agencies) submitted written comments that suggested 
modifications to the proposed amendment, while two additional letters 
concurred in the amendment as proposed. The following discussion 
concerns the five letters which offered substantive comments.

Section 2634.601

    One agency asked that it be allowed to continue using the outdated 
Standard Form (SF) 450, as it still has a large supply of those forms. 
We are unable to satisfy that request. First, OGE placed all designated 
agency ethics officials on notice that the old form would gradually be 
phased out (possibly as early as the fall of 1996), when we distributed 
for immediate use a camera-ready copy of the new form in a memorandum 
dated February 27, 1996. That advisory and a subsequent reminder 
memorandum of June 17, 1996, did suggest that the old SF 450 could 
continue to be used until supplies were depleted, unless otherwise 
advised. However, those memoranda also encouraged agencies to begin 
anticipating their needs and making arrangements for local copying of 
the new OGE Form 450 in time for the October 1996 filing cycle, which 
occurred more than six months ago.
    Second, the proposed regulatory amendment of January 15, 1997, put 
ethics officials on notice that Paperwork Reduction Act clearance for 
the SF 450 would finally expire at the end of August 1997. Third, the 
SF 450 is no longer considered to be an adequate format, as it is not 
fully up-to-date regarding certain disclosure requirements, and 
therefore OGE has not sought a further extension of Paperwork Reduction 
Act clearance for it from the Office of Management and Budget. For 
example, the SF 450 does not reflect a 1993 amendment to the 
confidential disclosure regulation eliminating the requirement to 
disclose bank accounts, money market funds and accounts, and U.S. 
Government obligations and securities. The old form also forces filers 
to determine whether certain mutual funds and pensions are ``excepted 
investment funds,'' which is no longer required of confidential filers. 
While OGE has instructed agencies to advise their filers of these 
changes, that has only served as a temporary stopgap measure. 
Furthermore, the SF 450 does not contain the improved instructional 
guidance that the new OGE Form 450 offers. For all these reasons, we 
have retained in this final rule the parenthetical reference that the 
old SF 450 remains usable only until August 31, 1997. After that date, 
the OGE Form 450 must be used by confidential filers.
    One agency asked that the final rule clarify whether the new 
certificate of no new interests (OGE Optional Form 450-A) could be used 
during the fall 1997 confidential disclosure filing cycle. We have made 
no change to the proposed rule on that question, as it will be clear 
from the rule's effective date, July 24, 1997, that it is usable in 
1997. We will also notify ethics officials of that effective date by 
separate memorandum, to be issued contemporaneously with the 
publication of this rule in the Federal Register. Of course, prior to 
permitting the use of OGE Optional Form 450-A for some or all of its 
eligible confidential filers, an agency head or designee must make the 
determination required by new Sec. 2634.905(d) that this certificate is 
adequate to prevent possible conflicts of interest, under the agency's 
particular circumstances. Agencies should accomplish this through their 
own established procedures, without consulting OGE. (If, however, an 
agency wishes to deviate from the prescribed methodology or format for 
OGE Optional Form 450-A, it must seek separate written OGE approval, 
pursuant to Sec. 2634.905(c), with appropriate justification. Other 
formats may also require clearance under the Paperwork Reduction Act 
from the Office of Management and Budget.)

Section 2634.905

    Two agencies suggested that the regulation should require users of 
the certificate of no new interests to attach their previous OGE Form 
450, as a basis for a full conflicts review by the agency and to inform 
new supervisors, or as an aid in tracking when filers would be required 
to submit a new complete OGE Form 450. On the latter point, this 
amendment was constructed so that agencies will not have to track each 
individual filer's history to determine when the allowable period of 
time has passed between OGE Form 450 filings. Instead, all confidential 
disclosure filers must use the OGE Form 450 every fourth year (or every 
third or second year, if the agency chooses to use those options), on a 
uniform basis. The preamble to the proposed amendment discussed this, 
but for further clarification, we have added a reference in 
Sec. 2634.905(d)(4) of the final rule to Sec. 2634.905(d)(5), which 
specifies the uniform periodic filing of OGE Form 450.
    Concerning the other comment on how to effectively review a filer's 
holdings and how to inform new supervisors of those holdings without 
the previously filed OGE Form 450, we note that the certificate will be 
a partial update of an OGE Form 450 that has already been reviewed with 
respect to the filer's current duties and kept on file by the agency, 
as discussed in the preamble to the proposed rule. In most cases, there 
will be no need for the agency to re-review the previous OGE Form 450. 
Any recusals or work assignment screening mechanisms should already 
have been established and undertaken, based on the original review of 
that earlier OGE Form 450. Furthermore, by not requiring certificate 
users to attach their previous OGE Form 450, the rule best advances the 
fundamental purposes for creating the certificate: to reduce paperwork 
and to simplify procedures for both filers and ethics officials. The 
amendment still allows an individual agency to require that its 
certificate users attach a copy of their previous OGE Form 450, if the 
agency determines that the previous form should be reexamined by 
supervisors or other agency reviewers. Note, however, that only the 
agency's official copy which is maintained in its files will 
necessarily reflect changes made during the agency review process, 
along with any steps undertaken to resolve potential conflicts. 
Therefore, the filer's personal copy will not always be an accurate or 
reliable indicator of the previously filed OGE Form 450, as reviewed. 
Based on all these considerations, OGE has not altered the proposed 
rule to accommodate this request, and will leave any requirement for 
certificate users to attach their previous OGE Form 450 up to each 
individual agency.
    Even though not required to attach their previous OGE Form 450, 
users of OGE Optional Form 450-A must first verify that they have 
reexamined their most recent previous OGE Form 450 before certifying 
that they have no new interests to report. Two agencies commented that 
it should be the responsibility of individual filers to retain copies 
of their prior OGE Form 450s for this purpose, so that they do not 
unnecessarily burden the agency with requests for copies. As noted in 
the preamble to the proposed rule, filers should be encouraged to 
retain copies of their previous filings, so that an agency's ethics 
office does not become overburdened with providing them copies. We have 
added a sentence to Sec. 2634.905(d)(6) as a permanent reminder. The 
final rule does not,

[[Page 33974]]

however, require filers to retain their prior OGE Form 450 as a 
condition of their using the new OGE Optional Form 450-A. If an agency 
is unable to convince filers to retain such records and believes that 
this creates an administrative burden, then that agency may decide, as 
suggested in the preamble to the proposed rule, not to adopt this new 
alternative procedure, because administrative time-saving would not be 
realized. Agencies might also want to delay implementation of this 
alternative procedure, which would provide a base year for filers to 
retain a copy of their OGE Form 450.
    Three agencies suggested that the certificate of no new interests 
be transformed into a certificate of no change. For the reasons 
discussed in the preamble to the proposed rule, OGE has not done that. 
As the preamble noted, it was a certificate of no new interests that 
had been tested at a Cabinet-level department and subsequently favored 
by 84% of the respondents to OGE's survey, rather than a certificate of 
no change (no new interests and no divestitures). A certificate of no 
new interests will permit a greater number of filers to use this 
alternative to the OGE Form 450. If an agency is concerned that filers 
may be unnecessarily recusing themselves from matters where they no 
longer hold a conflicting financial interest, it may want to have 
supervisors periodically revalidate with employees the continued need 
for any existing recusals, as a separate matter. If that is not 
practical, an agency may elect not to adopt this alternative procedure, 
and instead to continue requiring a new OGE Form 450 each year. Or it 
could seek written approval from OGE for some other alternative, 
pursuant to Sec. 2634.905(c), with appropriate justification. (Other 
formats may also require clearance under the Paperwork Reduction Act 
from the Office of Management and Budget.)
    Two agencies suggested that, instead of a separate form to be 
submitted as a certificate of no new interests, we should amend OGE 
Form 450 to include a space for periodic certification by filers, or 
that we should permit filers to stamp or annotate a certification on 
the current OGE Form 450. While those are useful suggestions which 
could help reduce paper and administration, and which might be less 
confusing for some filers, we have decided to retain the proposed 
method of filing a separate certificate. Switching to the method 
suggested by those two commenters on an executive branchwide basis 
would require OGE to publish a new proposed rule in the Federal 
Register and to seek additional clearance under the Paperwork Reduction 
Act for an altered OGE Form 450. Our existing proposal for a separate 
certificate of no new interests has already been pending or under 
development for almost two years, and the new OGE Form 450 was issued 
just last year. For these reasons, we believe that we should now go 
forward with the separate certificate, as proposed.
    One Cabinet-level department advised OGE that the proposal for a 
separate certificate of no new interests would not be implemented by 
them, as it would unnecessarily complicate the administration of the 
financial disclosure program and filing process, and it could confuse 
filers. They cited the loss of predictability for filers, the need for 
the department to distribute additional instructions, the possibility 
of having to provide both blank forms to filers, and the potential of 
requests from filers for copies of their prior reports.
    While we cannot disagree that some of these concerns may be valid 
to varying degrees, we believe that the majority of agencies will find 
overall that the certificate of no new interests will reduce paperwork 
and will provide a welcome relief for both filers and agency ethics 
officials. In order to further simplify the matter of providing 
guidance to certificate users on the meaning of ``reportable'' 
interests, OGE has made some changes to Sec. 2634.905(d)(3) of the 
final rule, including a suggestion that agencies may refer filers to 
electronic sources such as OGE's Internet Web site or software for 
completing OGE Form 450. Additionally, as noted in the proposed rule, 
use of this alternative certificate is entirely optional with each 
agency, and even if the agency does decide it would be beneficial to 
adopt, each affected employee would retain the option of either using 
the certificate (if applicable) or filing a new OGE Form 450. Thus, 
this regulatory amendment does not mandate any new requirements for 
agencies or their employees. It simply responds to a need for 
additional flexibility that OGE and a number of agencies and employees 
have identified. The commenting department's counter-proposal for a 
certification directly on the OGE Form 450 has not been adopted, for 
the reasons discussed above.
    One agency asked that OGE allow local rather than agencywide 
implementation of OGE Optional Form 450-A. As noted above, this new 
procedure requires the agency to determine, under Sec. 2634.905(d), 
that its use is adequate to prevent conflicts of interest, under that 
agency's particular circumstances. Further, the new rule permits 
implementation of this procedure for all or specified groups of its 
eligible filers. Using these guidelines, the commenting agency may 
decide to approve the use of OGE Optional Form 450-A for some but not 
all of its local components.
    One commenter asked that OGE allow agencies to develop alternative 
systems tailored to their particular needs. As discussed in the 
preamble to the proposed rule, the general regulatory authorization for 
use of a standardized alternative procedure by executive branch 
agencies which this amendment accomplishes does not eliminate other 
alternative procedures that have been approved by OGE in writing on an 
agency-specific basis, under 5 CFR 2634.905(c). If an agency wishes to 
deviate from the prescribed methodology or format for OGE Optional Form 
450-A, it must seek separate written OGE approval pursuant to 
Sec. 2634.905(c), with appropriate justification. (Other formats may 
also require clearance under the Paperwork Reduction Act from the 
Office of Management and Budget.) This commenter correctly recognized 
that, absent separate OGE approval, the new OGE Optional Form 450-A 
must be used in exactly the prescribed format and under the regulatory 
requirements of Sec. 2634.905(d). It is optional only in the sense that 
implementation by agencies is discretionary, and that its use will not 
be mandatory for any employee.
    One agency suggested that the OGE Optional Form 450-A be permitted 
for a maximum of four consecutive years before collection of another 
complete OGE Form 450, rather than three, as it would be easier to 
remember that filing a complete OGE Form 450 is required in years 
ending in ``0'' or ``5'' than in years divisible by four. 
Alternatively, this agency suggested that agencies be allowed to spread 
the periodic collection of OGE Form 450s from certificate users over 
several different years, so that it would not have to review all such 
forms in the same year. The Office of Government Ethics has rejected 
both suggestions. As noted in the preamble to the proposed rule, over 
half of the respondents to OGE's survey recommended the four-year 
maximum. The new regulation permits agencies to adopt fewer than four 
years as its standard, but we believe that a longer period would 
significantly reduce the effectiveness of OGE Optional Form 450-A in 
preventing conflicts. Concerning the requirement that all users of the 
OGE Optional Form 450-A file a new OGE Form 450 periodically at the 
same time, rather than staggering

[[Page 33975]]

those filings, the discussion above and in the preamble to the proposed 
rule explains that this was considered necessary in order to avoid the 
administrative confusion that would result if agencies had to track for 
individual filers when their next OGE Form 450 would be due. 
Furthermore, it was preferred by nearly two-thirds of the respondents 
to OGE's survey.
    In order to more accurately track the language of OGE Optional Form 
450-A, OGE has amended Sec. 2634.905(d) of the final rule describing 
the term ``changed jobs.'' As indicated therein, it includes a new 
position description or other ``significant change'' in duties at one's 
agency. Ordinarily, a certificate user should have no difficulty in 
understanding what is meant by a ``significant change'' in duties, 
especially in the context of the potential for conflicts of interest. 
If an agency anticipates that this could confound employees, it may 
wish to offer special guidance, tailored to the agency's mission and 
functions or to categories of position descriptions. The Office of 
Government Ethics has deliberately not attempted to further define the 
concept of ``significant change'' in duties, because it is not amenable 
to a Governmentwide or rigid interpretation. For some agencies, it may 
be important to have certificate users consider not only changes in 
their official responsibilities but also in the outside entities with 
which they routinely interact, when determining whether there has been 
a ``significant change.'' If the term proves too elusive for some 
agencies or filers, then they should simply not use OGE Optional Form 
450-A. Again, the purpose of this new form and procedure is to reduce 
paperwork and administrative burden. If an agency determines that those 
goals will not be fulfilled, then it should not adopt this new option.

OGE Optional Form 450-A

    One agency asked that OGE revise the parenthetical statement on the 
new OGE Optional Form 450-A which refers filers to instructions 
accompanying OGE Form 450 or other agency guidance in determining what 
interests are considered reportable. The agency suggested that filers 
should be referred to both sources, not to one or the other, so that an 
agency might supplement the instructional guidance accompanying OGE 
Form 450 without having to repeat or reference all of its contents. 
While we do not concur that supplemental guidance would necessarily 
have to repeat or reference all other guidance in order to stand alone, 
we have modified the parenthetical reference on the OGE Optional Form 
450-A by changing ``or'' to ``and/or.'' Another agency suggested that 
the new form be revised to include supplementary guidance directly on 
its face. Because of space limitations, and to further the purpose of 
this certificate as a short and simple alternative for annual filers, 
OGE has not adopted that suggestion.
    Two agencies suggested that OGE should add a signature block to the 
OGE Optional Form 450-A for the supervisor and/or ethics official to 
indicate receipt, or to show completion of review, or to verify whether 
the filer had changed jobs and if so, its effect on the potential for 
conflicts. Instead, the form has a space at the bottom, marked ``for 
agency use,'' with a designated block for ``date of receipt'' and for 
general ``notes.'' Agencies are free to use that space as they see fit, 
which might include the signatures of supervisors or ethics officials, 
if they deem it appropriate. Recognizing that each agency might want to 
use different procedures for tracking or examining these certificates, 
we have decided not to make the specific additions suggested by these 
two commenters.
    We have also not adopted the suggestion of one agency that OGE 
Optional Form 450-A be revised to more prominently state the penalties 
for falsification. Because of space limitations, we have decided to 
leave the penalties section on the second page, along with the Privacy 
Act statement.
    Nor have we adopted an agency's suggestion that OGE Optional Form 
450-A be modified to account for changes in a spouse's Federal 
employment. The form as drafted requires a certification that the 
certificate user's spouse has not changed jobs with a non-Federal 
employer, because it is only the spouse's non-Federal employment that 
must be reported as an earned income source on OGE Form 450. Based on 
this suggestion about spousal employment, however, we have decided to 
modify OGE Optional Form 450-A and Sec. 2634.905(d) of the regulatory 
amendment, to more directly focus on the source of a spouse's non-
Federal income rather than on a change in the spouse's responsibilities 
with an employer. To accomplish this on the form, we have moved spousal 
employment sources of income to section A (``No New Interests'') of the 
certificate and deleted it from section B (``No Change in Position/
Duties''). For certificate users themselves, the form will remain 
unchanged, as for them the inquiry does relate to their Federal 
employment and whether their duties have changed, since that is what 
will affect the potential for conflict with their financial interests.

III. Availability of Forms and Confidentiality

    Previously, OGE provided a camera-ready version of OGE Form 450 to 
each designated agency ethics official, for copying of supplies 
locally. Likewise, OGE intends to distribute to all designated agency 
ethics officials before the effective date a camera-ready version of 
the new OGE Optional Form 450-A, for local copying. Both forms are also 
available from OGE in electronic format, from which paper copies may be 
printed. The electronic format may be obtained through OGE's electronic 
bulletin board TEBBS (``The Ethics Bulletin Board System'') at 202-208-
8030, or via OGE's World Wide Web Site at http://www.access.gpo.gov/
usoge.
    As indicated in the proposed rule, once the OGE Optional Form 450-A 
is completed and filed, it is a confidential document and must be 
accorded the same privacy protections as the OGE Form 450. Thus, no 
member of the public will have access to a completed certificate of no 
new interests, except as authorized by law. See 5 CFR 2634.604(b) and 
2634.901(d). The OGE Optional Form 450-A includes a Privacy Act 
statement to that effect.

IV. Matters of Regulatory Procedure

Executive Order 12866

    In promulgating these final rule amendments, 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. These amendments have also 
been reviewed by the Office of Management and Budget under that 
Executive order.

Regulatory Flexibility Act

    As Director of the Office of Government Ethics, I certify under the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final 
amendatory rule will not have a significant economic impact on a 
substantial number of small entities, because it primarily affects 
Federal executive branch employees and their agencies.

Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply, 
because these amendments do not contain information collection 
requirements that require the approval of the Office of Management and 
Budget.

[[Page 33976]]

List of Subjects in 5 CFR Part 2634

    Administrative practice and procedure, Certificates of divestiture, 
Conflict of interests, Financial disclosure, Government employees, 
Penalties, Privacy, Reporting and recordkeeping requirements, Trusts 
and trustees.

    Approved: May 5, 1997.
Stephen D. Potts,
Director, Office of Government Ethics.

    Accordingly, for the reasons set forth in the preamble, the Office 
of Government Ethics is amending part 2634 of subchapter B of chapter 
XVI of title 5 of the Code of Federal Regulations, as follows:

PART 2634--[AMENDED]

    1. The authority citation for part 2634 continues to read as 
follows:

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 26 
U.S.C. 1043; 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.

Subpart F--Procedure

    2. Section 2634.601 is amended by removing the parenthetical phrase 
following paragraph (c), and by revising paragraph (a) and adding a new 
paragraph (d) to read as follows:


Sec. 2634.601  Report forms.

    (a) The Office of Government Ethics provides, through the Federal 
Supply Service of the General Services Administration (GSA), a standard 
form, the SF 278 (Public Financial Disclosure Report), for reporting 
the information described in subpart B of this part on executive branch 
public disclosure. The Office of Government Ethics also provides two 
uniform formats relating to confidential financial disclosure: OGE Form 
450 (Confidential Financial Disclosure Report) for reporting the 
information described in subpart I of this part on executive branch 
confidential disclosure; and OGE Optional Form 450-A (Confidential 
Certificate of No New Interests) for voluntary use by certain employees 
in lieu of filing an annual OGE Form 450, if authorized by their 
agency, in accordance with Sec. 2634.905(d) of subpart I of this part. 
Supplies of the two confidential forms are to be reproduced locally by 
each agency, from a camera-ready copy or an electronic format made 
available by the Office of Government Ethics. (Until August 31, 1997, 
the old SF 450 remains usable, rather than the new OGE Form 450, and is 
available from GSA's Federal Supply Service.)
* * * * *
    (d) The information collection and recordkeeping requirements have 
been approved by the Office of Management and Budget under control 
number 3209-0001 for the SF 278, and control number 3209-0006 for OGE 
Form 450/SF 450. OGE Optional Form 450-A has been determined not to 
require an OMB paperwork control number, as its use is strictly 
optional for employees, it is used exclusively by current Government 
employees, and it does not require affirmative disclosure of 
substantive information.

Subpart I--Confidential Financial Disclosure Reports

    3. Section 2634.905 is amended by removing the word ``or'' at the 
end of paragraph (b)(2), by removing the period at the end of paragraph 
(c) and replacing it with the terms ``; or'', and by revising the 
introductory text and adding a new paragraph (d) before the examples to 
read as follows:


Sec. 2634.905  Exclusions from filing requirements.

    Any individual or class of individuals described in Sec. 2634.904 
of this subpart, including special Government employees unless 
otherwise noted, may be excluded from all or a portion of the 
confidential reporting requirements of this subpart, when the agency 
head or designee determines that:
* * * * *
    (d) The use of OGE Optional Form 450-A (Confidential Certificate of 
No New Interests) is adequate to prevent possible conflicts of 
interest. This form may be used by eligible filers, as described in 
this paragraph, who can certify, after reexamining their most recent 
previous OGE Form 450, that they (and their spouse and dependent 
children) have acquired no new interests required to be reported on OGE 
Form 450, and that they have not changed jobs (no new position 
description or other significant change in duties) at their agency 
since filing that previous report. OGE Optional Form 450-A will be used 
under the following conditions:
    (1) OGE Optional Form 450-A will only be made available for use by 
current employees who are not special Government employees.
    (2) OGE Optional Form 450-A will only be used by incumbent filers, 
as described in Sec. 2634.903(a) of this subpart, in lieu of filing an 
annual OGE Form 450, who have a previous OGE Form 450 on file with 
their agency for the position they currently hold. Its due date is as 
specified in Sec. 2634.903(a), unless extended under Sec. 2634.903(d).
    (3) As indicated on the OGE Optional Form 450-A, eligible filers 
may use OGE Optional Form 450-A, if applicable to their circumstances, 
or they may file a new OGE Form 450, at their option. Therefore, a 
blank OGE Form 450 and its accompanying written instructions should 
ordinarily be distributed to them, along with the blank OGE Optional 
Form 450-A. The instructions to OGE Form 450 will also provide guidance 
on what is meant by ``reportable'' interests on OGE Optional Form 450-
A. In lieu of distributing a blank OGE Form 450 and its instructions, 
agencies may choose to develop separate guidance on the meaning of 
``reportable'' interests, or they may refer certificate users to 
guidance contained in any available source, such as the Office of 
Government Ethics' Web site on the Internet or agency-approved 
electronic software for OGE Form 450. Filers would then also have to be 
advised of where to obtain a blank OGE Form 450, if needed.
    (4) OGE Optional Form 450-A may be used by eligible filers for a 
maximum of three consecutive years before they are required to complete 
a new OGE Form 450 every fourth year, on a uniform basis for all 
incumbent (annual) filers, as provided in paragraph (d)(5) of this 
section. Agencies may, however, elect to permit use of the OGE Optional 
Form 450-A for only one year (or two years), and to require a new OGE 
Form 450 every second (or third) year, on a uniform basis for all 
incumbent filers, as provided in paragraph (d)(5) of this section.
    (5) In each year divisible by four, beginning in 2000 (or divisible 
by two or three, beginning in 1998, for agencies that choose one of the 
more frequent options described in the second sentence of paragraph 
(d)(4) of this section), all incumbent filers, as described in 
Sec. 2634.903(a) of this subpart, must file a new OGE Form 450 rather 
than OGE Optional Form 450-A, regardless of how recently they may have 
filed an OGE Form 450 (either as a new entrant or as an annual filer 
who was not eligible to use, or chose not to use, the optional 
certificate).
    (6) When submitting OGE Optional Form 450-A, filers are not 
required to attach a copy of their previous OGE Form 450, unless their 
agency determines that it is necessary. Filers should be encouraged, 
however, to retain a copy of their previous OGE Form 450, so that it 
will be readily available for their examination prior to

[[Page 33977]]

completing an OGE Optional Form 450-A.
* * * * *
[FR Doc. 97-16409 Filed 6-23-97; 8:45 am]
BILLING CODE 6345-01-U