[Federal Register Volume 68, Number 71 (Monday, April 14, 2003)]
[Rules and Regulations]
[Pages 17877-17879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8989]



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 Rules and Regulations
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  Federal Register / Vol. 68, No. 71 / Monday, April 14, 2003 / Rules 
and Regulations  

[[Page 17877]]



NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES

5 CFR Chapter LXVII

RIN 3137-AA15


Supplemental Standards of Ethical Conduct for Employees of the 
Institute of Museum and Library Services

AGENCY: Institute of Museum and Library Services (IMLS).

ACTION: Interim final rule, with request for comments.

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SUMMARY: The Institute of Museum and Library Services, with the 
concurrence of the Office of Government Ethics (OGE), is issuing 
regulations for officers and employees of IMLS that supplement the 
Standards of Ethical Conduct for Employees of the Executive Branch 
issued by OGE. The supplemental regulations require IMLS employees to 
obtain prior written approval to engage in certain outside employment 
or related activities.

EFFECTIVE DATE: These regulations take effect on April 14, 2003. 
Comments are invited and must be received on or before May 14, 2003.

ADDRESSES: Send comments by mail to Nancy E. Weiss, General Counsel, 
Institute of Museum and Library Services, 1100 Pennsylvania Avenue, 
NW., Suite 802, Washington, DC 20506, or by e-mail to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Nancy E. Weiss, General Counsel, 
Institute of Museum and Library Services, Suite 802, 1100 Pennsylvania 
Avenue, NW., Washington, DC 20506. Telephone (202) 606-5414; e-mail 
[email protected]. Individuals who use a telecommunications device for 
the deaf (TDD) may contact IMLS' TDD terminal at (202) 606-8636.

SUPPLEMENTARY INFORMATION:

1. Background

    On August 7, 1992, OGE published in the Federal Register new 
Standards of Ethical Conduct for Employees of the Executive branch (the 
``Standards'') (57 FR 35006-35067). The Standards, as corrected and 
amended, are codified at 5 CFR part 2635 and generally became effective 
February 3, 1993. Those regulations established uniform standards of 
ethical conduct that apply to all executive branch personnel.
    With the concurrence of OGE, 5 CFR 2635.150 authorizes executive 
branch agencies to publish agency-specific supplemental regulations 
necessary to implement their respective ethics programs. With OGE's 
concurrence, IMLS has determined that the following supplemental 
regulations contained in a new chapter LXVII, consisting of part 7701, 
of 5 CFR as set forth in this interim rule are necessary to implement 
IMLS's ethics program successfully, in light to of IMLS' programs and 
operations.

II. Analysis of the Regulations

Section 7701.101 General

    Section 7701.101 explains that the regulations contained in this 
interim rule will apply to all IMLS employees and are supplemental to 
the executive branchwide standards. Employees of IMLS are also subject 
to the Standards of Ethical Conduct for Employees of the Executive 
Branch at 5 CFR part 2635, the executive branch financial disclosure 
and financial interests regulations at 5 CFR parts 2634 and 2640, and 
the executive branch employees responsibilities and conduct regulations 
at 5 CFR part 735.

Section 7701.102 Prior-Approval for Outside Employment

    Under 5 CFR 2635.803, an agency that determines if is necessary or 
desirable for the purpose of administering its ethics program may, by 
supplemental regulation with OGE's concurrence and co-signature, 
require its employees to obtain written approval before engaging in 
outside employment. IMLS has determined that it is necessary to the 
administration of its ethics program to institute the requirement that 
employment that may pose the most potential for employees to violate 
applicable conflict laws and regulations.
    Therefore, subsection 7701.102(a) requires prior approval of 
outside employment when the outside employment involves a prohibited 
source. In identifying a ``prohibited source'' for purposes of this 
prior approval requirement, IMLS will apply the definition of that term 
found in the Standards at 5 CFR 2635.203(d). Thus, an employee would 
have to obtain approval before engaging in outside employment with any 
person (including an organization more than half of whose members are 
persons) seeking official action by IMLS; doing business or seeking to 
do business with IMLS; conducting activities regulated by IMLS; or 
having interests that may be substantially affected by the performance 
or nonperformance of the employee's official duties. Section 
7701.102(a) also requires written requests for approval to be submitted 
to the employee's immediate supervisor and his or her Designated Agency 
Ethics Officials and specifies the information to be included in the 
employee's request. Section 7701.102(b) states the standard to be used 
in approving or denying requests for approval of outside employment. 
The basis of denial, if any, must be found in applicable statutes or 
Federal regulations, including the executive branchwide Standards and 
this part.
    Section 7701.102(c) defines outside employment as including any 
form of compensated or uncompensated non-Federal employment or business 
relationship involving the provision of personal services by the 
employee. It includes writing done under arrangement with another 
person for production or publication of the written product.

III. Matters of Regulatory Procedure

Waiver of Proposed Rulemaking

    As Director of IMLS, I have found good cause pursuant to 5 U.S.C. 
553(b) and (d)(3) for waiving, as unnecessary and contrary to the 
public interest, the general notice of proposed rulemaking and the 30-
day delay in effectiveness as to this interim rule. The reason for this 
determination is that this rulemaking is related to IMLS' organization, 
procedure and practice. Nonetheless, this is an interim rulemaking with 
provision for a 30-day public comment period. IMLS will review all 
comments received during the comment period and will consider any 
modifications that appear appropriate in adopting these rules as

[[Page 17878]]

final with the concurrence and co-signature of the Office of Government 
Ethics.

Regulatory Flexibility Act

    As Director of IMLS, I have determined under the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) that this regulation will not have 
a significant economic impact on a substantial number of small entities 
because it only affects IMLS employees.

Paperwork Reduction Act

    As Director of IMLS, I have determined that the Paperwork Reduction 
Act (44 U.S.C. chapter 35) does not apply because these regulations do 
not contain any information collection requirements that require the 
approval of the Office of Management and Budget.

Executive Order 12866

    In promulgating this interim rule, IMLS 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. This rule has not been reviewed by the Office of Management and 
Budget under that Executive Order, since it deals with agency 
organization, management, and personnel matters and is not in any event 
deemed ``significant'' thereunder.

Executive Order 12988

    As Director of IMLS, I have reviewed this interim rule in light of 
section 3 of Executive Order 12988, Civil Justice Reform, and certify 
that it meets the applicable standards provided therein.

Unfunded Mandates Reform Act

    For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
chapter 25, subchapter II), this rule will not significantly or 
uniquely affect small governments and will not result in increased 
expenditures by State, local, and tribal governments, or by the private 
sector, of $100 million or more (as adjusted for inflation) in any one 
year.

Congressional Review Act

    IMLS has determined that this rulemaking is a nonrule under the 
Congressional Review Act (5 U.S.C. chapter 8), since it deals with 
agency management, organization and personnel matters.

List of Subjects in 5 CFR Part 7701

    Conflict of interests, Standards of conduct, Government employees.

    Dated: March 7, 2003.
Robert S. Martin,
Director, Institute of Museum and Library Services.
    Approved: March 26, 2003.
Amy L. Comstock,
Director, Office of Government Ethics.


0
For the reasons set forth in the preamble, the Institute of Museum and 
Library Services, with the concurrence of the Office of Government 
Ethics, is amending title 5 of the Code of Federal Regulations, by 
adding a new chapter LXVII, consisting of part 7701, to read as 
follows:

CHAPTER LXVII--INSTITUTE OF MUSEUM AND LIBRARY SERVICES

PART 7701--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES

Sec.
7701.101 Purpose.
7701.102 Prior approval for outside employment.

    Authority: 5 U.S.C. 7301, 5 U.S.C. App. (Ethics in Government 
Act of 1978); 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; 5 
CFR 2635.105, 2635.803.


Sec.  7701.101  Purpose.

    In accordance with 5 CFR 2635.105, the regulations of this part 
apply to employees of the Institute of Museum and Library Services 
(IMLS) and supplement the Standards of Ethical Conduct for Employees of 
the Executive Branch contained in 5 CFR part 2635. In addition to the 
regulations in 5 CFR part 2635 and this part, employees of IMLS are 
subject to the executive branch employee responsibilities and conduct 
regulations at 5 CFR part 735, the executive branch financial 
disclosure regulations at 5 CFR part 2634, and the executive branch 
financial interests regulations at 5 CFR part 2640.


Sec.  7701.102  Prior approval for outside employment.

    (a) Before engaging in any outside employment with a prohibited 
source within the meaning of 5 CFR 2635.203(d), whether or not for 
compensation, an employee other than a special Government employee must 
obtain written approval from his or her immediate supervisor and the 
Designated Agency Ethics Official. The request for approval shall 
include the following:
    (1) The name of the person, group, or organization for which the 
work is to be performed, the type of work to be performed, and the 
proposed hours of work and approximate dates of employment;
    (2) A brief description of the employee's official IMLS duties and 
a brief description of the employee's discipline or inherent area of 
expertise based on experience of educational background;
    (3) The employee's certification that the outside employment will 
not depend on information obtained as a result of the employee's 
official Government position and that no official duty time or 
Government property, resources, or facilities not available to the 
general public will be used in connection with the outside employment; 
and
    (4) Responses to the following:
    (i) Whether the proposed outside employment will pertain to a 
matter to which the employee is presently assigned or has been assigned 
within the last year;
    (ii) Whether the proposed outside employment pertains to an ongoing 
or announced agency policy or program;
    (iii) Whether the sponsor of the proposed outside employment has 
any interests before IMLS that may be substantially affected by the 
performance or nonperformance of the employee's duties;
    (iv) Whether the employee intends to refer to his or her official 
IMLS position during the proposed outside employment and if so, the 
text of any disclaimers that he or she will use;
    (v) Whether the employee will receive any payment or compensation 
for the proposed outside employment; and
    (vi) Whether the proposed outside employment will involve teaching 
a course which is part of the established curriculum of an accredited 
institution of higher education, secondary school, elementary school, 
or an education or training program sponsored by a Federal, State or 
local government entity.
    (b) Approval shall be granted only upon determination that the 
outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635 and this part.
    (c) Outside employment means any form of compensated or 
uncompensated non-Federal employment or business relationship involving 
the provision of personal services by the employee. It includes, but is 
not limited to, personal services such as acting as an officer, 
director, employee, trustee, agent, attorney, consultant, contractor, 
general partner, teacher or speaker. It includes writing when done 
under an arrangement with another person for

[[Page 17879]]

production or publication of the written product.

[FR Doc. 03-8989 Filed 4-11-03; 8:45 am]
BILLING CODE 7036-01-M