[Federal Register Volume 63, Number 17 (Tuesday, January 27, 1998)]
[Proposed Rules]
[Pages 3860-3861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1922]


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DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Parts 721 and 722


Removal of Rules on Standards of Conduct and Reporting Procedures 
on Defense Related Employment

AGENCY: Department of the Navy, DOD.

ACTION: Final rule; removal.

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SUMMARY: The Department of the Navy (DON) is removing rules for 
employee standards of conduct and reporting procedures for defense-
related employment (32 CFR Parts 721 and 722). Both rules have been 
superseded, and in that they no longer have any effect, are removed 
immediately. Providing for a comment period before final action in this 
case would be unnecessary, impracticable, and contrary to public 
interest. However, DON will accept and consider comments from 
interested persons in evaluating the effect of this action.

DATES: Effective Date of Removal: January 27, 1998.
    Comment date: Comments on this removal action should be submitted 
in writing to the address shown below on or before March 30, 1998.

ADDRESSES: Interested parties should submit written comments to 
Department of the Navy, Office of the Judge Advocate General, 
Administrative Law Division (Code 13), 200 Stovall Street, Alexandria, 
Virginia, 22332-2400.

FOR FURTHER INFORMATION CONTACT: Lieutenant Commander Mike Quinn, (703) 
604-8200.

SUPPLEMENTARY INFORMATION:

[[Page 3861]]

A. Background

    On April 12, 1989, President Bush issued Executive Order (E.O.) 
12674, ``Principles of Ethical Conduct for Government Officers and 
Employees.'' Section 201(a) of E.O. 12674 made the Office of Government 
Ethics (OGE) responsible for promulgating ``a single, comprehensive, 
and clear set of executive-branch standards of conduct that shall be 
objective, reasonable, and enforceable.''
    The OGE issued uniform standards of ethical conduct for all 
employees of the executive branch, codified at 5 CFR Part 2635, on 
August 7, 1992 (57 FR 35006). These regulations became effective on 
February 3, 1993.
    Section 301(a) of E.O. 12674 allows agency heads to supplement, 
where necessary and appropriate, the OGE standards of conduct. The 
Secretary of Defense, in consultation and conjunction with the OGE, 
issued supplemental ethical rules applicable to all Department of 
Defense (DOD) Components in August 1993. These supplemental rules, 
codified in 32 CFR Parts 83 and 84, state that the DOD ``shall have a 
single source of standards of ethical conduct and ethics guidance, 
including direction in the areas of financial and employment disclosure 
systems, post-employment rules, enforcement, and training.'' See, 32 
CFR 83.4(a) and 84.1(a).
    With promulgation of the OGE regulations and the DOD ``Joint Ethics 
Regulation,'' the DON's standards of conduct contained in 32 CFR part 
721 have been completely superseded. The Secretary of the Navy formally 
cancelled the DON's standards of conduct instruction on April 11, 1997. 
For these reasons, the Navy is now removing and reserving 32 CFR part 
721.
    Similarly, the rule contained in 32 CFR part 722 no longer has any 
meaning or effect. Part 722 contains requirements and procedures for 
the filing of form DD 1787 by certain present, former or retired DON 
personnel in reporting employment with DOD prime contractors. Authority 
for this rule was formerly found in 10 U.S.C. 2397. The National 
Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104-106, Sec. 
4304) repealed this statutory provision. The reporting requirement that 
this Part implements no longer exists.

B. Determination to Remove Without Prior Public Comment

    This removal action is being issued as a final rule, without a 
public comment period, as an exception to the DON's standard practice 
of soliciting comments during the rulemaking process. Providing a 
period of public comment in this case would be unnecessary, 
impracticable, and contrary to the public interest. This determination 
is based on several factors. First, removal of these Parts is entirely 
administrative and corrective in nature, not requiring the exercise of 
agency discretion. Second, this action has already been substantially 
delayed, and further delay is unwarranted. Finally, to allow these 
Parts to remain in the Code of Federal Regulations any longer may 
mislead and confuse the public and past or present DON employees 
regarding applicable ethics rules and post-government employment 
reporting requirements.

C. Matters of Regulatory Procedure

Executive Order 12866, Regulatory Planning and Review

    Removal of these Parts does not meet the definition of 
``significant regulatory action'' for purposes of E.O. 12866.

Regulatory Flexibility Act

    Removal of these Parts will not have a significant economic impact 
on a substantial number of small entities for purposes of the 
Regulatory Flexibility Act (5 U.S.C. chapter 6).

Paperwork Reduction Act

    Removal of these rules will not impose collection of information 
requirements for purposes of the Paperwork Reduction Act (44 U.S.C. 
chapter 35, 5 CFR Part 1320).

List of Subjects

32 CFR Part 721

    Conflict of interests, Government employees, Military personnel, 
Reporting and recordkeeping requirements.

32 CFR Part 722

    Conflict of interests, Government contracts, Government employees, 
Military personnel, Reporting and recordkeeping requirements.

PARTS 721 AND 722--[REMOVED AND RESERVED]

    Under the authority of Sec. 4304, Public Law 104-106, 110 Stat. 
186, and E.O. 12674, and for the reasons set forth in the preamble, 
remove and reserve parts 721 and 722 of title 32 of the Code of Federal 
Regulations.

    Dated: January 13, 1998.
Michael I. Quinn,
Lieutenant Commander, Judge Advocate General's Corps, U.S. Navy, 
Federal Register Liaison Officer.
[FR Doc. 98-1922 Filed 1-26-98; 8:45 am]
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