[Federal Register Volume 69, Number 212 (Wednesday, November 3, 2004)]
[Rules and Regulations]
[Pages 63921-63922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24498]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 105

RIN 3245-AF24


Standards of Conduct and Employee Restrictions and 
Responsibilities

AGENCY: U.S. Small Business Administration.

ACTION: Direct final rule.

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SUMMARY: The Small Business Administration (SBA) amends its regulations 
governing employee standards of conduct by deleting references to 
Supplemental Standards of Ethical Conduct and revising the descriptions 
of the headings for Office of the Government Ethics (OGE) regulations. 
The effect of these amendments is to make SBA's Standards of Conduct 
and Employee Restrictions and Responsibilities a more precise statement 
of existing authorities applicable to the ethical conduct of SBA 
employees.

DATES: This direct final rule is effective January 3, 2005, without 
further action, unless adverse comment is received by December 3, 2004. 
If adverse comment is received, SBA will publish a timely withdrawal of 
the direct final rule in the Federal Register.

ADDRESSES: You may submit comments, identified by RIN number, by any of 
the following methods: (1) Federal eRulemaking Portal: http://www.regulations.gov; (2) e-mail: [email protected]. Include RIN 
number in the subject line of the message; (3) Fax: (202) 481-5275; (4) 
mail: Robert L. Gangwere, Deputy General Counsel, Office of General 
Counsel, U.S. Small Business Administration, 409 3rd Street, SW., 
Washington, DC 20416; (5) hand delivery/courier: 409 3rd Street, SW., 
Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: Susan L. Sundberg, Alternate 
Designated Agency Ethics Official, Office of General Counsel, U.S. 
Small Business Administration, 409 3rd Street, SW., Washington, DC 
20416; (202) 619-0585; e-mail: [email protected]. 

SUPPLEMENTARY INFORMATION: SBA issued regulations governing employee 
standards of conduct on January 26, 1996, at 61 FR 2399 based on its 
independent authority under the Small Business Act, 15 U.S.C. 631 et 
seq., and Executive Order 11222, May 8, 1965. According to 5 CFR 
2635.105, an agency may also issue regulations that supplement OGE's 
regulations on standards of conduct for Executive branch employees, 
which the agency determines are necessary and appropriate in view of 
its programs and operations. Although SBA's standards of conduct 
regulations currently make general and specific references to 
supplemental regulations, SBA has no current plans to issue such 
supplemental regulations. Therefore, it is necessary to amend the 
regulations so as not to imply that such supplemental regulations 
exist. The current regulations also cross-reference two parts of OGE's 
regulations, 5 CFR part 2634 and 5 CFR part 2635, and describe them as 
the Uniform Financial Disclosure regulations and the Uniform Standards 
of Ethical Conduct for Executive Branch employees, respectively. This 
direct final rule will revise these descriptions to make them 
consistent with the actual headings used by OGE in its regulations.
    SBA is publishing this rule as a direct final rule because the 
Agency believes that this rule is non-controversial; it merely makes 
the Agency's regulations consistent with existing authorities. SBA 
expects no adverse comments on this rule. If, however, adverse comments 
are received, SBA will publish a timely notice of withdrawal in the 
Federal Register.

Section-by-Section Analysis

    Section 105.101 notifies employees that 5 CFR part 2635 codifies 
the ``Uniform Standards of Ethical Conduct for Executive Branch 
employees'' and that 5 CFR part 2634 codifies the ``Uniform Financial 
Disclosure regulation for Executive Branch employees.'' Because these 
headings do not accurately reflect the headings found at 5 CFR parts 
2634 and 2635, this direct final rule amends Sec.  105.101 to indicate 
the accurate headings for these OGE regulations. Section 105.101 also 
refers employees to SBA Supplemental Standards of Ethical Conduct at 5 
CFR XLIV. This direct final rule deletes that reference because such 
regulations do not exist.
    Section 105.402 identifies the Designated Agency Ethics Official as 
the official who serves as SBA's Standards of Conduct Counselor, 
delegates authority to that official to designate Assistant Standards 
of Conduct Counselors, and describes their responsibilities under OGE 
and SBA regulations, including SBA's supplemental regulations. 
Paragraph (b)(4) of this section will be removed in order to delete the 
provision directing standards of conduct counselors to rely on SBA's 
Supplemental Standards of Ethical Conduct in making decisions on 
outside employment. SBA will also make minor grammatical changes to 
this section to improve clarity.

Compliance With Executive Orders 13132, 12988 and 12866, the Regulatory 
Flexibility Act (5 U.S.C. 601-612) and the Paperwork Reduction Act (44 
U.S.C. Ch. 35)

    This direct final rule will not have substantial direct effects on 
the States, on the relationship between the national Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of Government. Therefore, for the purposes of Executive 
Order 13132, SBA determines that this direct final rule has no 
federalism implications warranting preparation of a federalism 
assessment.
    This direct final rule meets applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice 
Reform, to minimize litigation, eliminate ambiguity, and reduce burden. 
The direct final rule does not have retroactive or preemptive effect.
    The Office of Management and Budget (OMB) has determined that this 
direct final rule does not constitute a significant regulatory action 
under Executive Order 12866.
    SBA certifies that this direct final rule will not have a 
significant economic impact on a substantial number of small entities 
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601-612 
because the direct final rule applies to SBA employees, not small 
entities.
    SBA has determined that this direct final rule will not impose any 
new reporting or recordkeeping requirements under the Paperwork 
Reduction Act, 44 U.S.C. Ch. 35.

List of Subjects in 13 CFR Part 105

    Conflicts of interest, Conduct standards, Ethical conduct, 
Financial disclosure, Government employees.


[[Page 63922]]



0
For the reasons stated in the preamble, SBA amends 13 CFR part 105 as 
follows:

PART 105--STANDARDS OF CONDUCT AND EMPLOYEE RESTRICTIONS AND 
RESPONSIBILITIES

0
1. The authority citation for part 105 continues to read as follows:

    Authority: 5 U.S.C. 7301; 15 U.S.C. 634, 637(a)(18) and (a)(19), 
642 and 645(a).


0
2. Revise Sec.  105.101 to read as follows:


Sec.  105.101  Cross-reference to employee ethical conduct standards 
and financial disclosure regulations.

    In addition to this part, Small Business Administration (SBA) 
employees should refer to the Standards of Ethical Conduct for 
Employees of the Executive Branch at 5 CFR part 2635 and the 
regulations at 5 CFR part 2634 entitled, Executive Branch Financial 
Disclosure, Qualified Trusts and Certificates of Divestiture.

0
3. Amend Sec.  105.402 by revising paragraphs (b) (2) and (b) (3) and 
removing paragraph (b) (4) to read as follows:


Sec.  105.402  Standards of Conduct Counselors.

* * * * *
    (b) * * *
    (2) Monitor the Standards of Conduct Program within their assigned 
areas and provide required reports thereon; and
    (3) Review Confidential Financial Disclosure reports as required 
under 5 CFR part 2634, subpart I, and provide an annual report on 
compliance with filing requirements to the SBA Standards of Conduct 
Counselor as of February 1 of each year.
* * * * *

Hector V. Barreto,
Administrator.
[FR Doc. 04-24498 Filed 11-2-04; 8:45 am]
BILLING CODE 8025-01-P