[Federal Register Volume 70, Number 63 (Monday, April 4, 2005)]
[Rules and Regulations]
[Pages 16937-16941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6383]


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DEPARTMENT OF STATE

AGENCY FOR INTERNATIONAL DEVELOPMENT

22 CFR Part 10

[Public Notice 5036]
RIN 1400-AC09


Removal of Regulations on Employee Responsibilities and Conduct

AGENCY: State Department and United States Agency for International 
Development.

ACTION: Direct final rule.

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SUMMARY: The Department of State and the United States Agency for 
International Development (USAID) are removing regulations on employee 
responsibilities and conduct (22 CFR part 10). Most of these 
regulations have been superseded or otherwise made unnecessary by 
Office of Government Ethics or Office of Personnel Management 
regulations of executive branch-wide applicability. Certain sections of 
the regulations are based on Foreign Service Act provisions that have 
been repealed. Some provisions have continuing application and are 
published, as modified, in the Foreign Affairs Manual and other 
provisions simply reference other statutory or regulatory provisions. 
The Department of State and USAID are using direct final rulemaking for 
this action because it is expected that there will be no significant 
adverse comment on the rule.

DATES: This direct final rule is effective on June 3, 2005, without 
further notice, unless the Department of State and USAID receive 
adverse comment by May 4, 2005. If adverse comment is received, then 
the Department of State and USAID will publish a timely withdrawal of 
the direct final rule in the Federal Register.

ADDRESSES: You may submit comments, identified by any of the following 
methods:
     E-mail: [email protected]. You must include the RIN in 
the subject line of your message.
     Mail (paper, disk, or CD-ROM submissions): Julia L. 
Eirinberg, Attorney-Adviser, Department of State, Office of the 
Assistant Legal Adviser for Employment Law, 2201 C Street NW, Suite 
5425, Washington, DC 20520.
     Fax: 202-647-6794.
    Persons with access to the internet may also view this notice and 
provide comments by going to the regulations.gov Web site at: http://www.regulations.gov/index.cfm.

FOR FURTHER INFORMATION CONTACT: Julia L. Eirinberg, Attorney-Adviser, 
Department of State, Office of the Assistant Legal Adviser for 
Employment Law, 2201 C Street NW., Suite 5425, Washington DC 20520; e-
mail address: [email protected].

SUPPLEMENTARY INFORMATION: The Department of State and USAID are 
removing part 10, ``Employee Responsibilities and Conduct,'' from 22 
CFR as a result of developments in the executive branch ethics program 
and in other areas of law that have occurred since the promulgation of 
part 10 on May 2, 1978. While the regulations in 22 CFR part 10 also 
applied to the International Communication Agency (ICA), that agency no 
longer exists and its functions have been assumed by the Department of 
State.
    Pursuant to the Ethics in Government Act of 1978 (5 U.S.C. App.), 
as amended, the U.S. Office of Government Ethics (OGE) now provides 
overall direction and leadership in relation to the executive branch 
ethics program. In 1989, E.O. 12674 (as modified by E.O. 12731) 
directed OGE to establish ``a single, comprehensive, and clear set of 
executive-branch standards of conduct'' and ``a system of nonpublic 
(confidential) financial disclosure.'' On August 7, 1992, OGE published 
the Standards of Ethical Conduct for Employees of the Executive Branch 
(Standards), now codified at 5 CFR part 2635. On April 7, 1992, OGE 
modified its existing financial disclosure regulation, at 5 CFR part 
2634, to incorporate a revised system of confidential financial 
disclosure reporting.
    Part 10 of 22 CFR was published in 1978 largely on the basis of a 
model standards of conduct regulation at old 5 CFR part 735 that had 
been promulgated by the Office of Personnel Management (OPM) pursuant 
to Executive Order 11222. The new OGE Standards became effective 
February 3, 1993. The Standards superseded individual executive agency 
conduct provisions--like those in 22 CFR part 10--that had been issued 
on the basis of the model OPM regulation, and superseded much of the 
model regulation itself. (As discussed below in relation to section 
10.735-205 of part 10, certain agency conduct provisions were 
``grandfathered'' or preserved for a few years after the February 3, 
1993, effective date.) Provisions in the OGE regulation at 5 CFR part 
2634 concerning the revised system of confidential financial disclosure 
became effective on October 5, 1992, and superseded those portions of 
individual executive agency regulations pertaining to confidential 
reporting that had been issued on the basis of the model OPM 
regulation. Taken together and as discussed more fully below, 5 CFR 
part 2635 and 5 CFR part 2634 superseded subpart C, subpart D, and much 
of subparts A and B of part 10. As also discussed below, the remaining 
sections of subparts A and B have been superseded or supplanted by 
other OGE regulations, are obsolete, or are unnecessary.
    In subpart A of part 10, the statement of purpose in section 
10.735-101 has been superseded by corollary sections in 5 CFR part 2635 
and 5 CFR part 2634

[[Page 16938]]

and by language in section 101 of E.O. 12674 emphasizing the importance 
of ethical conduct. The definitions in section 10.735-102 have been 
superseded by definitions in the OGE regulations or are relevant only 
in relation to restrictions in volume 3 of the Foreign Affairs Manual 
and will, in any event, be rendered unnecessary when the rest of part 
10 is removed from the CFR. Section 10.735-104 states that part 10 
applies to all employees on detail to the Department. This section was 
important when each agency had its own conduct regulation, but is no 
longer necessary to the extent that the same basic standards, financial 
disclosure requirements, and conflict of interest statutes (and 
implementing regulations) now apply to all executive branch employees. 
Section 10.735-105 states that a violation of part 10 may be cause for 
appropriate disciplinary action. This section has been superseded by 
provisions in the Standards and the financial disclosure regulation, at 
sections 2635.106 and 2634.701, and by provisions in volume 3 of the 
Foreign Affairs Manual.
    Section 10.735-103 of subpart A requires that the Secretary of 
State and Administrator of USAID each designate a ``Counselor'' to 
provide advice on employee conduct and to coordinate counseling 
services provided by designated ``Deputy Counselors.'' This section has 
been supplanted by procedural and staffing changes made by the 
Department and USAID consistent with the OGE regulation at 5 CFR part 
2638. Part 2638 requires the Secretary and Administrator to each name a 
``Designated Agency Ethics Official'' (DAEO) who, assisted by one or 
more ``Deputy Ethics Officials'' and other staff, is responsible for 
counseling and training and for other aspects of the ethics programs at 
the respective agencies.
    In subpart B of part 10, section 10.735-201 sets forth general 
principles of conduct from Executive Order 11222. Executive Order 11222 
was revoked in 1989 by Executive Order 12674. Similar principles now 
appear in Executive Order 12674 and are restated in the Standards, at 
section 2635.101. Section 10.735-201 also highlights provisions in part 
10 having some application to a U.S. citizen employee's family. The 
highlighted provisions have been superseded by the Standards, are now 
implemented in 22 CFR part 3 (in relation to gifts from foreign 
governments), or are published, as modified, in volume 3 of the Foreign 
Affairs Manual (in relation to employees and family members abroad). 
The application of provisions to family members accompanying employees 
overseas is treated specifically in the Foreign Affairs Manual because 
of privileges and immunities attributed to family members by virtue of 
the official status of employees under international law. In addition, 
certain provisions in the Standards may affect an employee by virtue of 
the actions or interests of a family member. See, e.g., 5 CFR 2635.203 
(providing that an employee accepts a gift indirectly if it is given 
with the employee's knowledge and acquiescence to his or her parent, 
sibling, spouse, child, or dependent relative because of that person's 
relationship to the employee).
    The first paragraphs of section 10.735-202 of part 10 prohibit an 
employee from accepting gifts from outside sources in certain 
circumstances, e.g., from persons doing or seeking to do business with 
his or her agency, but provide for several exceptions. These provisions 
were superseded by subpart B of the Standards. In addition, section 
10.735-202 prohibits an employee from giving a gift to an official 
superior and from accepting a gift from an employee receiving less pay. 
These prohibitions derive from 5 U.S.C. 7351 and are now implemented in 
subpart C of the Standards.
    In addition, section 10.735-202 affirms that an employee may accept 
travel and subsistence expenses in connection with permissible outside 
activities notwithstanding the gifts prohibitions in part 10, but 
prohibits ``excessive'' benefits. The acceptance of gifts, 
compensation, or travel expenses in connection with outside activities 
is now addressed in the Standards, in subparts B and H. See also 5 CFR 
2636.303 (defining ``outside earned income'' in relation to the outside 
compensation restrictions imposed on certain high-level ``noncareer'' 
employees by section 102 of E.O. 12674 and by title V of 5 U.S.C. App., 
as implemented by OGE in section 2635.804 of the Standards and in 5 CFR 
part 2636). Section 10.735-202 also cites a 1967 Comptroller General 
opinion, Decision B-128527. The appropriations law principles addressed 
in this decision are addressed in numerous subsequent legal opinions 
and are reflected in volume 2 of the Foreign Affairs Manual and in 
other regulations.
    Section 10.735-203 of part 10 briefly summarizes the Foreign Gifts 
and Decorations Act, at 5 U.S.C. 7342, and references the Department's 
implementing regulation at 22 CFR part 3. The Foreign Gifts and 
Decorations Act is summarized in the OGE Standards, e.g., in section 
2635.204. Other laws and regulations of significance to the ethics 
program are similarly summarized or referenced in subparts A through H 
of the Standards. Separately, subpart I of the Standards lists these 
significant laws and regulations (including 5 U.S.C. 7342), as well as 
other laws that establish standards to which an employee's conduct must 
conform. The subpart I compilation has replaced the listing in section 
10.735-216 of part 10. (Even to the extent that a summary or reference 
in part 10 is not included in the Standards or some other regulation 
relating to the ethics program, the Department has determined that a 
summary or reference does not warrant further publication in part 10 
absent some additional justification.)
    Section 10.735-204 of part 10 prohibits an employee from engaging 
in an outside activity that conflicts with the employee's official 
duties and summarizes the Emoluments Clause of the U.S. Constitution 
and a conflict of interest statute, 18 U.S.C. 209, pertaining to the 
acceptance of compensation for services to the Government. These 
provisions have been superseded by the general provisions in subpart H 
of the Standards pertaining to conflicting outside activities, 
including the brief summaries in subpart H of the Emoluments Clause and 
various conflict of interest statutes.
    Section 10.735-204 specifically addresses teaching, speaking, and 
writing pursued as an outside activity. It restricts the use of 
Government information in connection with the preparation of a person 
for an examination of the Civil Service Commission (now OPM) or Board 
of Examiners for the Foreign Service, prohibits certain Presidential 
appointees from accepting compensation for teaching, speaking, or 
writing about certain subject matter, and alerts employees to the 
existence of clearance procedures. The compensation restriction has 
been superseded by section 2635.807 of the Standards. See also section 
102 of E.O. 12674 and title V of 5 U.S.C. App. (imposing ``outside 
earned income'' restrictions on certain high-level ``noncareer'' 
employees, as implemented in section 2635.804 of the Standards and in 5 
CFR part 2636). The restriction pertaining to the use of Government 
information remains in the residual OPM regulation at 5 CFR part 735. 
As discussed above, the mere reference in part 10 to the teaching, 
speaking, and writing clearance procedures, now in volume 3 of the 
Foreign Affairs Manual, is unnecessary.

[[Page 16939]]

    Section 10.735-204 also affirms that an employee may serve a 
foreign government or international organization of states if serving 
on behalf of the United States, and that the section does not preclude 
participation in the activities of political parties or participation 
in (or awards from) private organizations. While these affirmations 
remain generally correct, other statutes and regulations address, for 
example, the detail or transfer of employees to international 
organizations or to foreign governments. See e.g., 5 U.S.C. 3343; 5 
U.S.C. 3581-84; 5 CFR 352.301 et seq.; 22 U.S.C. 2387; 22 U.S.C. 2388. 
The general permissibility of domestic political activity is implicit 
in the references, at section 2635.801 and 2635.902 of the Standards, 
to the ``Hatch Act'' restrictions. See also 5 CFR 2635.204 (providing 
that an employee may accept certain gifts in connection with active 
participation in political management or political campaigns). It is 
also apparent from subpart H of the Standards that participation in 
outside organizations is generally permissible, subject to certain 
restrictions. The acceptance of awards from private organizations is 
specifically addressed in section 2635.204 of the Standards.
    Section 10.735-211 of part 10 requires that an employee make clear 
that his or her participation in a private organization, in his or her 
personal capacity, should not be construed as an official endorsement 
of the organization's viewpoints, but provides that an employee may 
make use of his or her title for purposes of identification when 
participating in certain organizations (e.g., civic organizations) and 
that an employee is generally free to refer to his or her connection 
with the agency when participating in an employee organization. This 
portion of section 10.735-211 has been superseded by section 2635.702 
of the Standards.
    Section 10.735-211 specifically addresses employee participation, 
in a personal capacity, in private organizations concerned with foreign 
policy. Unless approved by specified officials at the Department or 
USAID, an employee ``may not serve as advisor, officer, director, 
teacher, sponsor, committee chairman, or in any other official capacity 
or permit the employee's name to be used on a letterhead, in a 
publication, in an announcement or news story, or at a public meeting * 
* *'' and ``senior officers'' are limited to mere membership. These 
limitations have been superseded by the more general outside activities 
provisions in subpart H of the Standards and by the restriction at 5 
CFR 2635.702 pertaining to the use of official title. Moreover, an 
employee's participation in an outside organization must be consistent 
with certain conflict of interest statutes and with the impartiality 
standard as implemented in 5 CFR 2635.502.
    Section 10.735-211 affirms that an employee is free to join or not 
join an employee organization, and that an employee may participate in 
professional organizations not concerned with foreign policy subject to 
limitations. While these affirmations remain generally correct, they do 
not warrant continued publication and must be read, in any event, in 
the context of restrictions in the Standards (especially in subpart H) 
and certain conflict of interest statutes or regulations.
    Section 10.735-211 briefly summarizes the ``Hatch Act'' 
restrictions and highlights several political activities that are 
permissible. It also briefly summarizes laws prohibiting disloyalty and 
striking. As discussed above, the restrictions on employee 
participation in political activities are referenced in more than one 
section of the Standards. Moreover, all of these laws are listed in 
subpart I of the Standards.
    Section 10.735-211 also states that a U.S. citizen employee shall 
not engage in any form of political activity in any foreign country. 
This prohibition, as modified, is in volume 3 of the Foreign Affairs 
Manual. Section 10.735-206 lists several other restrictions or 
obligations that apply to U.S. citizen employees abroad, their family 
members, and non-U.S. citizen employees abroad. These restrictions and 
obligations derive from provisions in the Vienna Convention on 
Diplomatic Relations (23 U.S.T. 3227) and the Convention on Consular 
Relations (21 U.S.T. 77). They are published, as modified, in volume 3 
of the Foreign Affairs Manual. This portion of volume 3 of the Foreign 
Affairs Manual also contains the substance of the requirement in 
section 10.735-215(b) requiring that an employee abroad obey the laws 
of the country in which the employee is present.
    Section 10.735-205 contains a summary of an exception to certain 
conflict of interest statutes, 18 U.S.C. 203 and 205, and identifies 
``the head of the employee's division'' as the appointing official 
authorized by the statutes to approve use of the exception. The 
statutes themselves are summarized in section 2635.801 (including 
general references to the exceptions) and in subpart I of the 
Standards. The statutes do not require that the identity of the 
appointing official be published in the CFR or elsewhere. Moreover, it 
is expected that the DAEOs and ethics staff will counsel employees 
concerning the identity of the ``appointing official'' who must approve 
use of the exception.
    Section 10-735.205 mainly concerns 18 U.S.C. 208. All executive 
branch employees are prohibited by 18 U.S.C. 208 from participating in 
an official capacity in particular matters in which they, or certain 
persons or entities with whom they have specified relationships, have a 
financial interest. When part 10 was published in 1978, individual 
agencies were authorized by 18 U.S.C. 208 to adopt agency-specific 
regulations exempting financial interests from the applicability of the 
statutory prohibition. Section 10.735-205 lists the interests deemed by 
the Department under 18 U.S.C. 208(b) to be too ``remote'' or 
``inconsequential'' to affect the integrity of an employee's services 
to the Government. The Ethics Reform Act of 1989 (Public Law No. 101-
194), as amended, eliminated the authority of individual agencies to 
adopt waivers pursuant to 18 U.S.C. 208(b) and established OGE's 
authority to issue executive branch-wide exemptions. The initial OGE 
exemptions, now codified in subpart B of 5 CFR part 2640, became 
effective on August 28, 1995 and January 17, 1997. As of January 17, 
1997, all of the agency-specific exemptions as in effect prior to 
November 30, 1989--including those in section 10.735-205 of part 10--
were superseded.
    Primarily in contemplation of conflicts arising under 18 U.S.C. 
208, section 10.735-205 prohibits an employee from having a financial 
interest that conflicts or appears to conflict substantially with the 
employee's official duties. Section 10.735-205 also prohibits an 
employee from engaging in a financial transaction based on information 
obtained through Government employment. These provisions were 
superseded by sections 2635.403 and 2635.703 of the Standards.
    Section 10.735-217 specifies a procedure by which an employee may 
request an advance written determination from the Under Secretary for 
Management at the Department or from the Administrator of USAID that 
the prohibitions of 18 U.S.C. 208 do not apply. These procedures have 
been supplanted by the procedures developed by the DAEOs and ethics 
staff to provide oral and written advice concerning matter relating to 
any of the Federal ethics laws and regulations, including the issuance 
of individual waivers as authorized by 18 U.S.C. 208.
    Section 10.735-207 of part 10 prohibits the use of Government 
property for other than officially approved activities. This 
prohibition has been superseded by section

[[Page 16940]]

2635.704 of the Standards. As contemplated by the OGE regulation, 
various Foreign Affairs Manual provisions and other Department 
issuances define ``authorized purposes.'' In addition, the General 
Services Administration has promulgated various regulations concerning 
the use of Government property generally. Section 10.735-209 of part 10 
requires an employee to pay all just financial obligations, especially 
taxes. This section has been superseded by section 2635.809 of the 
Standards. Section 10.735-208 of part 10 prohibits an employee from 
using nonpublic Government information to further a private interest 
(subject to an exception concerning the preparation of persons for 
certain examinations). This section has been superseded by section 
2635.703 of the Standards (and, as discussed above, by 5 CFR 735.202 
insofar as section 10.735-209 references an exception relating to the 
preparation of persons for certain examinations).
    Section 10.735-210 of part 10 prohibits an employee from engaging 
in any gambling activity while on Government property or while on duty 
for the Government. Section 10.735-215(a) prohibits an employee from 
engaging in conduct prejudicial to the Government. These provisions 
remain implemented in sections 735.201 and 735.203, respectively, of 
the OPM regulation at 5 CFR part 735.
    Section 10.735-212 of part 10 generally prohibits an employee of 
the Foreign Service from wearing any uniform except as may be 
authorized by law or as a military commander may require civilians to 
wear in a theatre of military operations, but indicates that certain 
attire should not be considered a uniform for purposes of this 
prohibition and refers to an appropriations restriction applicable to 
the then ICA pertaining to the purchase of uniforms. The statute 
underlying the prohibition, 22 U.S.C. 803, has been repealed by the 
Foreign Service Act of 1980 and, as discussed above, the ICA no longer 
exists. Moreover, members of the Foreign Service do not wear uniforms.
    Section 10.735-213 concerns making recommendations in an official 
or personal capacity and references a statute, 22 U.S.C. 806, that 
prohibited an employee from recommending another person for employment 
by the country to which the employee is accredited or assigned. Section 
806 has been repealed, and the limitations prescribed in section 
10.735-213 concerning recommendations made in a personal capacity have 
been superseded by those in section 2635.702 of the Standards. To the 
extent that section 2635.702 is construed to apply to recommendations 
offered in an official capacity, it supersedes section 10.735-213 in 
that regard as well. The provision in section 10.735-213 pertaining to 
the recommendation of firms in connection with USAID programs is 
addressed in regulations pertaining to Government procurement and is, 
therefore, no longer necessary.
    Section 10.735-214 contains a number of limitations on employees' 
transmission of communications and gifts. Paragraph (a) refers to 
limitations on correspondence regarding the affairs of foreign 
governments, which is derived from a statutory provision (former 22 
U.S.C. 806(a)), which has been repealed.
    Paragraph (b) provides that an employee must not act as agent for 
transmitting communications from persons or organizations in foreign 
countries to the President or other governmental officials, except that 
a chief of mission may do so when he or she determines it to be clearly 
in the public interest. This provision was derived from the restriction 
on transmitting gifts, and was intended as a practical limitation on 
employees serving as a conduit for transmitting communications from 
foreign persons or organizations. While this limitation still serves a 
valid purpose, it is reflected in other authorities and does not 
warrant the continued publication of 22 CFR part 10.
    Paragraph (c) provides that an employee shall not act as agent for 
the transmission of gifts from persons or organizations in foreign 
countries to the President or other officials; however, principal 
officers may accept and forward to the Office of Protocol gifts made to 
the United States, or to any political division thereof, by the 
government to which they are accredited. This is largely a restatement 
of former 22 U.S.C. 804, which has been repealed. It also was intended 
as a practical limitation on employees serving as a conduit for 
transmitting gifts from foreign persons or organizations. The rules 
governing acceptance of gifts from foreign governments or international 
organizations are set out in the Foreign Gifts and Decorations Act and 
22 CFR part 3. While the limitations on transmission of gifts also 
encompasses foreign individuals or organizations not affiliated with a 
foreign government or international organization, these limitations, as 
modified, are properly reflected in 2 FAM 344 and do not warrant the 
continued publication of this section of 22 CFR part 10.
    Subpart C of part 10 concerns ``special Government employees.'' As 
defined in 18 U.S.C. 202, a special Government employee (SGE) is an 
officer or employee who is retained, designated, appointed, or employed 
by the Government to perform temporary duties, with or without 
compensation, for not more than 130 days during any period of 365 
consecutive days. (The full statutory definition of SGE also 
encompasses employees serving in specified Government positions without 
regard to the number of days of expected service. In addition, 
particular statutes may specifically designate individuals occupying 
certain positions as SGEs.) Subpart C states generally that an SGE is 
subject to the conflict of interest statutes and to the U.S. 
Constitution as it pertains to gifts from foreign governments, 
referencing a discussion of the conflict of interest statutes in the 
now defunct Federal Personnel Manual and the regulations at 22 CFR part 
3 implementing the Foreign Gifts and Decorations Act. In addition, 
subpart C contains standards deriving from E.O. 11222 that are specific 
to SGEs.
    The definition of ``employee'' in section 2635.102 of the Standards 
encompasses SGEs. Therefore, the restrictions and obligations set forth 
(or summarized) in the Standards apply equally to SGEs and other 
employees unless a particular provision specifies (or explains) that 
SGEs are treated differently or are exempted altogether. For example, 
the compensation restriction in section 2635.807 of the Standards, 
relating to teaching, speaking, and writing, applies differently to 
SGEs (and, in fact, applies still differently to SGEs serving for 60 or 
fewer days). And, the summaries of 18 U.S.C. 209 in subparts B and H of 
the Standards make clear that the statute does not apply to SGEs at 
all.
    Subpart D of part 10 concerns the system of confidential financial 
disclosure developed under authority of Executive Order 11222. Under 
authority conferred by Executive Order 12674 (and pursuant to authority 
in the Ethics in Government Act of 1978, as amended), OGE has 
established a revised system of confidential disclosure. As noted 
above, the revised system, published in 5 CFR part 2634, superseded 
subpart D of part 10 on October 5, 1992. Section 10.735-411 of subpart 
D concerns disqualification and other remedies available to address 
conflicts of interest. These matters are now addressed in various 
sections of 5 CFR parts 2634, 2635, and 2640.

[[Page 16941]]

Regulatory Findings

Administrative Procedure Act

    In accordance with provisions of the Administrative Procedure Act 
governing rules promulgated by Federal agencies that affect the public 
(5 U.S.C. 552), the Department is publishing this direct final rule and 
inviting public comment.

Regulatory Flexibility Act

    The Department of State, in accordance with the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), has reviewed this regulation and, by 
approving it, certifies that this rule will not have a significant 
economic impact on a substantial number of small entities.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by State, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the Unfunded Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by section 804 of the 
Small Business Regulatory Enforcement Fairness Act of 1996. This rule 
will not result in an annual effect on the economy of $100 million or 
more; a major increase in costs or prices; or significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based companies to 
compete with foreign based companies in domestic and import markets.

Executive Order 12866

    The Department of State does not consider this rule to be a 
``significant regulatory action'' under Executive Order 12866, section 
3(f), Regulatory Planning and Review. In addition, the Department is 
exempt from Executive Order 12866 except to the extent that it is 
promulgating regulations in conjunction with a domestic agency that are 
significant regulatory actions. The Department has nevertheless 
reviewed the regulation to ensure its consistency with the regulatory 
philosophy and principles set forth in that Executive Order.

Executive Order 13132

    This regulation 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, in accordance with section 6 
of Executive Order 13132, it is determined that this rule does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement.

Paperwork Reduction Act

    This rule does not impose any new reporting or recordkeeping 
requirements subject to the Paperwork Reduction Act, 44 U.S.C. chapter 
35.

List of Subjects in 22 CFR Part 10

    Conflict of interest, Government employees.


0
Accordingly, under the authority of the Ethics in Government Act of 
1978 (5 U.S.C. App.); Executive Order 12674, as modified by Executive 
Order 12731; 5 CFR Part 2634 and 5 CFR Part 2635, the Department of 
State and the United States Agency for International Development are 
amending 22 CFR chapter 1 by removing part 10.

    Dated: January 19, 2005.
Grant S. Green Jr.,
Under Secretary of State for Management, Department of State.

    Dated: March 11, 2005.
Steven Wisecarver,
Acting Assistant Administrator for Management, U.S. Agency for 
International Development.
[FR Doc. 05-6383 Filed 4-1-05; 8:45 am]
BILLING CODE 4710-08-P