[Federal Register Volume 64, Number 59 (Monday, March 29, 1999)]
[Rules and Regulations]
[Pages 14829-14830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7519]


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FEDERAL TRADE COMMISSION

16 CFR Part 4


Appearances Before the Commission; Restrictions As To Former 
Members and Employees

AGENCY: Federal Trade Commission (FTC).

ACTION: Final rule.

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SUMMARY: The Commission is amending its rule governing the appearance 
of former members and employees, Rule 4.1(b), to more closely track the 
post-employment restrictions of the criminal conflict of interest 
statute, 18 U.S.C. 207.

EFFECTIVE DATE: These amendments are effective March 29, 1999.

FOR FURTHER INFORMATION CONTACT: Ira S. Kaye, 202-326-2426, or Shira 
Pavis Minton, 202-326-2479, Attorneys, Office of the General Counsel, 
FTC, 600 Pennsylvania Avenue, NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION: The Commission is revising paragraph (b) of 
Commission Rule 4.1, 16 CFR 4.1, which currently prohibits a former 
employee's participation, ``behind-the-scenes,'' in a Commission matter 
that had been pending under his or her official responsibility before 
departing the Commission, provided that the former employee had not 
participated in the matter personally and substantially (which includes 
actively supervising it), and that nonpublic documents or information 
about the matter had not, and would not have been likely to have, come 
to the former employee's attention. Under these circumstances, the 
rule, like 18 U.S.C. 207, will permit a former employee to render in-
house assistance in connection with the representation in question (see 
5 CFR 2637.201(b)(6)). The rule, however, will continue to prohibit 
making an appearance before, or communication to, a member or employee 
of the Commission with the intent to influence that person in 
connection with the matter.
    The Commission will continue to monitor closely the post-employment 
activites of its former employees. The Clearance Rule will continue to 
require them to file clearance requests before participating in matters 
that were pending in the Commission before they departed, even if they 
had not participated in those matters, and even if they plan to render 
only behind-the-scenes assistance.
    The Commission also is deleting, from two paragraphs, language that 
it had added to the rule as part of its 1998 amendments. 63 FR 15758 
(April 1, 1998). First, the Commission is deleting the last sentence of 
paragraph (b)(5)(vii) of the Rule to clarify that, although the rule 
generally allows former employees to participate in rulemaking 
proceedings, a former ``senior employee'' may not communicate with or 
appear before a Commission employee regarding any matter, including a 
rulemaking proceeding, within the first year after leaving the 
Commission. Second, the Commission is deleting from paragraph 
(b)(1)(iii) the words ``and the employee left the Commission within the 
previous three years[.]'' The amendment restores the Commission's 
authority to prohibit participation by a former employee who left more 
than three years earlier, where nonpublic documents or information that 
would still convey a present advantage would likely have come to her 
attention.
    These rule amendments relate solely to agency practice, and, thus, 
are not subject to the notice and comment requirements of the 
Administrative Procedure Act, 5 U.S.C. 553(a)(2), or to the 
requirements of the Regulatory Flexibility Act, 5 U.S.C. 601(2).

[[Page 14830]]

    The submissions required by the amended rule do not generally 
involve the ``collection of information'' as that term is defined by 
the Paperwork Reduction Act (``PRA''), 44 U.S.C. 3501-3520. Submission 
of a request for clearance to participate or a screening affidavit is 
ordinarily required only during the conduct of an administrative action 
or investigation involving a specific individual or entity. Such 
submissions are exempt from the coverage of the PRA. 5 CFR 
1320.4(a)(2). To the limited extent that the rule could require a 
submission outside the context of an investigation or action involving 
a specific party, the information collection aspects of the rule have 
been cleared by the Office of Management and Budget and assigned OMB 
clearance no.3084-0047.

List of Subjects in 16 CFR Part 4

    Administrative practice and procedure.
    For the reasons set forth in the preamble, the Federal Trade 
Commission amends Title 16, chapter I, subchapter A, of the Code of 
Federal Regulations as follows:

PART 4--MISCELLANEOUS RULES

    1. The authority citation for part 4 continues to read as follows:

    Authority: Sec. 6, 38 Stat. 721; 15 U.S.C. 46.


Sec. 4.1  [Amended]

    2. Section 4.1(b)(1) introductory text is amended by adding, 
between the words ``under'' and ``paragraph (b)(1)(iv),'' the words 
``paragraph (b)(1)(ii) or''.
    3. Section 4.1(b)(1)(iii) is amended by removing the words ``and 
the employee left the Commission within the previous three years''.
    4. Section 4.1(b)(5)(vii) is amended by removing the final 
sentence.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-7519 Filed 3-26-99; 8:45 am]
BILLING CODE 6750-01-M