[Federal Register Volume 64, Number 241 (Thursday, December 16, 1999)]
[Notices]
[Pages 70259-70262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32543]


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OFFICE OF GOVERNMENT ETHICS


Submission for OMB Review; Comment Request: Proposed Paperwork 
Renewal of a Moderately Revised Version of the SF 278 Executive Branch 
Personnel Public Financial Disclosure Report

AGENCY: Office of Government Ethics (OGE).

ACTION: Notice.

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SUMMARY: The Office of Government Ethics has submitted to the Office of 
Management and Budget (OMB) a moderately revised version of the OGE-
sponsored Standard Form (SF) 278 Executive Branch Personnel Public 
Financial Disclosure Report for a three-year extension of approval 
under the Paperwork Reduction Act.

DATES: Comments on this proposal should be received by January 18, 
2000.

ADDRESSES: Comments should be sent to Joseph F. Lackey, Jr., Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
New Executive Office Building, Room 10235, Washington, DC 20503; 
telephone: 202-395-7316.

FOR FURTHER INFORMATION CONTACT: William E. Gressman or Michael J. 
Lewandowski at the Office of Government Ethics; telephone: 202-208-
8000, extension 1110 or 1185; TDD: 202-208-8025; FAX: 202-208-8037. A 
mark-up copy of the SF 278 form as proposed for revision may be 
obtained, without charge, by contacting either Mr. Gressman or Mr. 
Lewandowski.

SUPPLEMENTARY INFORMATION: The Office of Government Ethics has 
submitted to OMB a moderately revised version of the SF 278 Executive 
Branch Personnel Public Financial Disclosure Report (OMB control number 
3209-0001) for a three-year extension of approval under the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35). The paperwork approval 
for the current version of the SF 278 will continue until OMB grants 
approval for the new revised edition of the form. Since modifications 
to the standard form are being proposed, OGE will also seek General 
Services Administration (GSA) clearance for the modified form once OMB 
paperwork approval for it is received. The original printed forms of 
the new edition will be stocked through GSA (see below) and will 
probably have a yellow or green background shading to help distinguish 
them from the existing forms that they will supersede.
    The Office of Government Ethics, as the supervising ethics office 
for the executive branch of the Federal Government under the Ethics in 
Government Act (the Ethics Act), 5 U.S.C. appendix, is the sponsoring 
agency for the Standard Form 278, the most recent edition of which is 
that of June 1994. The prior January 1991 edition has also remained 
usable until supplies are exhausted. No earlier editions can be used. 
The forthcoming now early 2000 edition of the SF 278 report form will 
supersede those prior editions and must be used instead of them once 
available, probably late next winter or next spring. If the new edition 
is not ready in time for an orderly transition before the May 2000 
calendar year 1999 annual SF 278 report filing season, OGE will provide 
for a grace period during which the 1994 (or 1991) forms may still be 
used and will so inform executive branch departments and agencies. In 
accordance with section 102 of the Ethics Act, 5 U.S.C. appendix, 
section 102, and OGE's implementing financial disclosure regulations at 
5 CFR part 2634, the SF 278 collects pertinent financial information 
from certain officers and high-level employees in the executive branch 
for conflicts of interest review and public disclosure. The financial 
information collected under the statute and regulations relates to: 
assets and income; transactions; gifts, reimbursements and travel 
expenses; liabilities; agreements or arrangements; outside positions; 
and compensation over $5,000 paid by a source--all subject to various 
reporting thresholds and exclusions.
    The SF 278 is completed by candidates, nominees, new entrants,

[[Page 70260]]

incumbents and terminees of certain high-level positions in the 
executive branch of the Federal Government. The Office of Government 
Ethics, along with the agencies concerned, conducts the review of the 
SF 278 reports of Presidential nominees subject to Senate confirmation. 
These reports are filed by both incumbent Government officials and 
private citizens who have been so nominated. The Office of Government 
Ethics' paperwork estimates in this notice are based on the anticipated 
number of such nominee SF 278 reports filed by private citizens (and 
their private representatives--lawyers, accountants, brokers and 
bankers), those who file termination reports from such positions after 
their Government service ends, as well as Presidential and Vice 
Presidential candidates (whose reports OGE also reviews) who are 
private citizens. In light of OGE's experience over the past three 
years (1996-1998), the estimate of the total number, on average, of SF 
278 report forms expected to be filed annually at OGE by private 
citizen members of the public (as opposed to current Federal 
employees), is being somewhat reduced to 260. The prior paperwork 
burden estimate was 280 OGE-processed SF 278 reports per year. The OGE 
estimate covers the next three years, 1999-2001, including a 
significant increase in SF 278 reports anticipated with the transition 
following the fall 2000 Presidential election.
    The estimated average amount of time to complete the SF 278 report 
form, including review of the instructions and gathering of needed 
information, remains the same at three hours. Thus, the overall 
estimated annual public burden for the SF 278 for the private citizen/
representative nominee, candidate and terminee report forms processed 
at OGE is being reduced from 840 to 780 hours (260 forms times 3 hours 
per form). Moreover, OGE estimates, based on the agency ethics program 
questionnaire responses for 1996-1998, that an average of some 21,500 
SF 278 report forms are filed annually at departments and agencies 
throughout the executive branch. Most of those executive branch filers 
are current Federal employees at the time they file, but certain 
candidates for President and Vice President, nominees, new entrants and 
terminees complete the form either before or after their Government 
service. The percentage of private citizen filers branchwide is 
estimated at no more than 5% to 10%, or some 1,050 to 2,100 per year at 
most.
    On July 12, 1999, OGE published a first round paperwork notice of 
its forthcoming request for three-year extension of paperwork approval 
for the SF 278. See 64 FR 37536-37539. Four comments were received from 
executive branch agencies, together with several in-house OGE comments. 
One of the agency comments recommended that the present columnar format 
for reporting the various categories of value for assets, income, 
transactions, and liabilities be changed to a letter code valuation 
system. The agency expressed the view that uniform use of letter codes 
would provide a single, consistent method for reporting values 
throughout the form. The agency also urged the SF 278 be changed from 
its present ``landscape'' (sideways) orientation to a ``portrait'' 
orientation. After due consideration, OGE has decided not to adopt 
these suggestions for the SF 278 as currently proposed for revision. 
Any such changes would dramatically change both the report template and 
the overall reporting format. At this point in the paperwork renewal 
process, such major changes could further delay clearance of the needed 
new edition of the SF 278. However, OGE will seriously consider making 
such changes, which appear particularly suited to the developing field 
of electronic forms, to the next edition of the report form in the 
future, possibly even in advance of the regular full three-year 
paperwork cycle.
    In addition, OGE received two comments recommending changes to 
reporting categories to simplify them and to more closely track the 
dollar limits of certain exemptions from the personal financial 
interests regulation at 5 CFR part 2640. In response, OGE notes that 
changing reportable categories would require that Congress amend the 
Ethics Act which directly specifies the categories of value to be 
reported for income, assets, transactions and liabilities. See section 
102(a)(1)(B) and (d)(1) of the Ethics Act, 5 U.S.C. appendix, section 
102(a)(1)(B) and (d)(1). The Office of Government Ethics would need to 
carefully consider any possible recommendation for a legislative 
revision so that any change proposed would simplify rather than 
complicate the already intricate categories required. This is beyond 
the scope of the present paperwork process. Moreover, OGE notes that it 
is considering changing some of the exemptive categories under its part 
2640 regulation. Thus, at the present time, OGE does not intend to seek 
any changes to the reporting categories.
    Another commenting agency recommended that OGE make completion of 
the new proposed filing extension check-off box (in the reviewing 
officials comments box on the bottom of the front page of the SF 278 
report form) optional. Upon review, OGE has determined that the 
benefits of incorporating the new check-off box warrant its inclusion 
as a required part of the form. The new box will save agency ethics 
officials and OGE staff follow-up time and effort in instances when a 
report otherwise appears to be filed late, with the necessity to 
ascertain if a late filing fee is due unless an OGE waiver thereof is 
sought and granted.
    Most of the proposed moderate revisions OGE is recommending, as 
indicated in the first round Federal Register notice, result from our 
own experience and review for updating, though some come from agency 
suggestions received from time to time as well as in response to the 
notice. Among the new modifications proposed to the SF 278 is the 
incorporation into the form of certain changes in the reporting law as 
regards higher-category (over $1,000,000) assets, income and 
liabilities. To date, OGE has asked executive branch departments and 
agencies in a series of DAEOgrams over the years to so notify filers 
administratively. Moreover, as noted in the first round paperwork 
notice, OGE has recently determined that transactions are included in 
the higher-category reporting requirement. The inclusion of higher-
value categories for transactions will only affect future SF 278 
reports once the proposed modified form receives its final paperwork 
approval and is made available by OGE and GSA. As noted in the mark-up 
copy of the SF 278 as proposed for revision available from OGE (see the 
FOR FURTHER INFORMATION CONTACT section above), these higher categories 
for items of filers (including items jointly held with a spouse or 
dependent children) will be specified in new notes proposed on page 11 
of the SF 278 instructions as well as on Schedules A, B and C of the 
report form.
    In response to one of the agency comments noted above seeking 
consistency for the format of reporting of categories of value 
throughout, the new higher categories would now be included in 
additional columns (instead of write-in letter codes as previously 
proposed) on those schedules. For assets, transactions and liabilities, 
the new higher categories are: $1,000,001 to $5,000,000; $5,000,001 to 
$25,000,000; $25,000,001 to $50,000,000; and over $50,000,000. For 
income, the higher categories are: $1,000,001 to $5,000,000; and over 
$5,000,000. As to any such items held solely by a filer's spouse or 
dependent children, only the traditional ``over $1,000,000'' column, 
which is being retained, would need to be checked. In addition, OGE 
proposes to

[[Page 70261]]

include on page 5 of the form instructions a notice of the requirement 
to report the category of reportable trust interests, including the new 
higher values, for those filers who have Ethics Act qualified blind or 
diversified trusts (as well as a separate brief mention of the 
reportability of trust interests as to which the filer is a trustee). 
In such instances, OGE advises concerned filers and their agencies of 
the application of this provision, which does not apply to trusts 
executed prior to July 24, 1995, that preclude the beneficiary from 
receiving information on the total cash value of any such trust 
interest. See sections 20 and 22 of the Lobbying Disclosure Act of 
1995, Public Law 104-65, which amended section 102(a)(1)(B), (d)(1) and 
(e)(1) and added new section 102(a)(8) of the Ethics Act, 5 U.S.C. 
appendix, section 102(a)(1)(B), (a)(8), (d)(1) and (e)(1). The Office 
of Government Ethics will revise its executive branchwide regulations 
at 5 CFR 2634.301 and 2634.302 to reflect the higher-value categories.
    In addition, OGE is adding an adjustment of the gifts/travel 
reimbursements reporting thresholds for the SF 278 that needs to be 
made since GSA earlier this year raised ``minimal value'' to $260 or 
less for the three-year period 1999-2001 (from the prior level of $245 
or less) under the Foreign Gifts and Decorations Act, 5 U.S.C. 7342. 
See 64 FR 13700-13701 (March 22, 1999), revising the GSA foreign gifts 
regulation at 41 CFR 101-49.001-5. Because the foreign gifts ``minimal 
value'' is now over $250, the Ethics Act financial disclosure gifts/
reimbursements reporting thresholds, at 5 U.S.C. appendix, section 
102(a)(2)(A) and (B), which are pegged to any such increase, are being 
adjusted to ``more than $260'' for the aggregation level of reporting 
and ``$104 or less'' for gifts and reimbursements which do not have to 
be counted in the aggregate threshold. In a forthcoming rulemaking, OGE 
will revise those reporting thresholds as found at 5 CFR 2634.304 (a), 
(b) and (d) of its executive branch regulations. Since OGE expects that 
GSA will adjust ``minimal value'' every three years, the ethics 
reporting thresholds for gifts and reimbursements will now likely have 
to be adjusted every three years as well (as coordinated with paperwork 
renewals, as nearly as possible).
    Moreover, as noted on the mark-up copy of the form as proposed to 
be revised, OGE has now dropped the old reference on page 11 of the 
instructions to the specific dollar amount of the civil monetary 
penalty for prohibited uses of an SF 278 report to which access has 
been gained. Instead, the reference will simply be to the civil 
monetary penalty which can be assessed. The penalty under section 
104(a) of the Ethics Act, 5 U.S.C. appendix, section 104(a), was raised 
effective September 29, 1999, from $10,000 to $11,000 in coordinated 
OGE and Department of Justice inflation adjustment rulemakings under 
the 1996 Debt Collection Improvement Act revisions to the 1990 Federal 
Civil Penalties Inflation Adjustment Act, at 28 U.S.C. 2461 note. The 
OGE rulemaking, in pertinent part, revised 5 CFR 2634.703 of the 
executive branchwide financial disclosure regulation. See OGE's 
amendatory rulemaking as published at 64 FR 47095-47097 (August 30, 
1999) and Justice's amendatory rulemaking as published at 64 FR 47099-
47104 (August 30, 1999). The removal of the specific dollar amount 
reference in the SF 278 instructions will avoid the need to revise or 
annotate the form periodically in the future when OGE and the Justice 
Department further adjust that civil monetary penalty pursuant to 
additional rulemakings, which are to be issued at least once every four 
years under the inflation adjustment law.
    Also, now on page 3 of the instructions, OGE would parenthetically 
reference the extra time grantable pursuant to a filing extension--up 
to 45 days by the filer's agency and up to an additional 45 days by 
OGE. See 5 U.S.C. appendix, section 101(g)(1) of the Ethics Act and 5 
CFR 2634.201(f) of OGE's regulations thereunder. In addition, as 
mentioned earlier, OGE is proposing to add a new check-off box in the 
reviewing officials comments box on the bottom of the front page of the 
SF 278 report form itself to show whether any filing extension has been 
granted and, if so, the number of days. Also, OGE is proposing to move 
the explanatory text on the late filing fee from page 11 to page 3 of 
the instructions. Further, OGE would move the definition of 
``relatives'' from page 2 to page 8 to accompany the instructions on 
the exclusion of any gifts and reimbursements received from relatives.
    Another important change OGE is proposing is the addition of a new 
continuation page for part I of Schedule B on transactions. In OGE's 
experience, many filers need more than the five spaces currently 
provided in that part to indicate their reportable purchases, sales and 
transactions. The new continuation page would add 16 more spaces for 
such entries, and duplicates of that page would allow for any further 
entries needed.
    Various other, minor changes are being proposed. These include 
moving the Schedule A (assets and income) check-off columns for 
excepted investment funds and excepted and qualified trusts from under 
Block B ``Income'' to a separate area immediately to the left thereof. 
In part to make room for the addition of the new higher-value category 
columns, OGE would also combine the ``Other'' income and ``Actual 
Amount'' columns into one (at the place of the latter on the right-hand 
side of Schedule A). In Block A of Schedule A, OGE would clarify the 
summary explanatory text regarding the reporting of assets and income. 
On the Schedule A continuation page, OGE would drop the explanatory 
text in Block A as unnecessary. Likewise, OGE is proposing to drop the 
new Schedule B, Part I continuation page explanatory text. Moreover, 
upon reflection, OGE has decided (except for the noted proposed 
revisions to the Block A, Schedule A text) not to make any changes to 
the existing explanatory texts for Schedules B, C and D of the SF 278 
form. The earlier proposed clarifying cross-references in the various 
other schedules are not necessary in light of the fuller treatment of 
these matters in the instructions and, for reporting periods, on the 
front page of the SF 278 report form itself. Further, the space 
available on the report schedules is very limited and should be left as 
uncluttered as possible. The clarifications proposed in the first round 
notice stage generated a number of suggestions for additional 
clarifications for which there is simply not enough room.
    A revision that OGE does still propose to make would add express 
mention, in the public burden information notice on page 11 of the 
instructions, of a statement required pursuant to the 1995 amendments 
to the paperwork law to the effect that ``an agency may not conduct or 
sponsor, and no person is required to respond to, a collection of 
information unless it displays a currently valid OMB control number,'' 
together with a parenthetical mention that such number (# 3209-0001) is 
displayed there and in the upper right-hand corner of the front page of 
the form. In that notice, OGE also proposes to drop the reference to 
OMB as a further point of contact for information collection comments 
on the SF 278. Pursuant to current procedures, OGE will be indicated 
from now on as the sole contact point for such comments on the form, on 
which OGE will coordinate with OMB if necessary. Furthermore, OGE 
proposes to slightly modify the wording regarding the sixth numbered 
routine use under the Privacy Act

[[Page 70262]]

statement (also on page 11 of the instructions). The modified wording 
will reflect the application to pending judicial or administrative 
proceedings of the underlying routine use h. in the OGE/GOVT-1 
executive branchwide system of records. See 55 FR 6327-6331 (February 
22, 1990).
    Finally, various minor proposed style, format and updating changes 
to certain parts of the instructions and the report form are proposed, 
including removal of column shading from Schedules A and B (to improve 
readability) and indication of the new 2000 edition date.
    Once finally cleared by OMB and GSA and printed by the Government 
Printing Office, the paper original of the 2000 edition of the SF 278 
report form will be stocked and made available for purchase by 
departments and agencies nationwide from the GSA Federal Supply Service 
Customer Supply Centers.
    In addition, for the past several years, OGE has placed in the 
Ethics Resource Library section of its Internet Web site (Uniform 
Resource Locator (URL) address: http://www.usoge.gov) a viewable and 
downloadable Portable Document Format (PDF) version of the current 6/94 
edition of the SF 278 and is also working on a fillable version of the 
6/94 edition. A fillable version of the SF 278 is available from GSA's 
Web site electronic library of standard and optional forms (URL 
address: http://www.gsa.gov/forms/). Moreover, OGE will develop first a 
PDF version and then a fillable version of the new 2000 edition of the 
SF 278 for placement on the OGE Web site once it is finally cleared and 
issued next year. Those electronic versions of the SF 278 form have 
been and will continue to be made available free-of-charge to executive 
branch departments and agencies and their employees. In addition, the 
forthcoming 2000 edition of the form will be included in future 
editions of The Ethics CD-ROM. Departments and agencies can also 
electronically duplicate the SF 278 without standard form exception 
clearance, provided that the duplication precisely parallels the 
original paper form to the extent technically feasible, producing a 
``mirror image'' print-out thereof.
    Furthermore, OGE is considering the paperwork and technical issues 
relating to development of so-called ``smart'' electronic forms, 
including the SF 278, which employ a question and answer format to 
elicit information on reportable interests and funnel the data onto the 
schedules of the report forms. Various agencies in addition to OGE are 
interested in this area. The Office of Government Ethics is reviewing 
the executive branchwide aspects of these initiatives, including a 
possible umbrella OGE ``generic'' paperwork clearance package.
    For now, OGE notes that even with all of these electronic 
initiatives, the SF 278 reports, once completed by individual filers, 
will still need to be printed out and signed manually. Electronic 
filing is not authorized at the present time for SF 278 reports. 
However, OGE is monitoring developments under the Government Paperwork 
Elimination Act and the proposed OMB guidelines (together with any 
possible future related legislation), under which appropriate 
electronic availability and filing of various Government forms will 
generally be phased in by October 2003.
    Public comment is invited on each aspect of the SF 278 Public 
Financial Disclosure Report as proposed for revision as set forth in 
this notice, including specifically views on the need for and practical 
utility of this collection of information, the accuracy of OGE's burden 
estimate, the potential for enhancement of quality, utility and clarity 
of the information collected, and the minimization of burden (including 
the use of information technology). The Office of Government Ethics, in 
consultation with OMB, will consider all comments received in response 
to this notice. The comments will also become a matter of public 
record.

    Approved: December 9, 1999.
Stephen D. Potts,
Director, Office of Government Ethics.
[FR Doc. 99-32543 Filed 12-15-99; 8:45 am]
BILLING CODE 6345-01-U