[Federal Register Volume 75, Number 121 (Thursday, June 24, 2010)]
[Rules and Regulations]
[Pages 35957-35959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15103]



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  Federal Register / Vol. 75, No. 121 / Thursday, June 24, 2010 / Rules 
and Regulations  

[[Page 35957]]



SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION

5 CFR Chapter LXXXII


Supplemental Standards of Ethical Conduct for Employees of the 
Special Inspector General for Iraq Reconstruction

AGENCY: Special Inspector General for Iraq Reconstruction.

ACTION: Interim rule with request for comments.

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SUMMARY: The Special Inspector General for Iraq Reconstruction (SIGIR), 
with the concurrence of the Office of Government Ethics (OGE), is 
issuing an interim regulation for employees of the SIGIR that 
supplement the executive-branch-wide Standards of Ethical Conduct 
(Standards) issued by OGE. With certain exceptions, this supplemental 
regulation requires SIGIR employees, except special Government 
employees, to obtain approval before engaging in outside employment.

DATES: This interim rule is effective June 24, 2010. Written comments 
must be received by August 23, 2010.

ADDRESSES: Send or deliver comments to Michael H. Mobbs, Deputy General 
Counsel and Designated Agency Ethics Official, by any of the following 
methods:
     E-mail: [email protected] Include the reference 
``SIGIR Supplemental Standards'' in the subject line of the message.
     Fax: 703-428-0817.
     Mail/Hand Delivery/Courier: SIGIR, 400 Army Navy Drive, 
Arlington, VA 22202-4704, Attention: Michael H. Mobbs, Deputy General 
Counsel and Designated Agency Ethics Official (DAEO).

FOR FURTHER INFORMATION CONTACT: Michael H. Mobbs, Deputy General 
Counsel, Telephone 703-604-0429; e-mail: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    In 1992, OGE published Standards of Ethical Conduct for Employees 
of the Executive Branch (Standards) which became effective on February 
3, 1993. The Standards, as corrected and amended, are codified at 5 CFR 
part 2635. The Standards set uniform ethical conduct standards 
applicable to all executive branch personnel. Section 2635.105 of the 
Standards authorizes agencies, with the concurrence of OGE, to publish 
agency-specific supplemental regulations that are necessary to properly 
implement their respective ethics programs. The SIGIR, with OGE's 
concurrence, has determined that the following interim supplemental 
rule is necessary for successful implementation of its ethics program.

Analysis of the Regulations

Section 9201.101 General

    Section 9201.101 explains that the regulations in part 9201 apply 
to employees of the SIGIR and supplement the OGE Standards. This 
section also includes cross-references to other issuances applicable to 
SIGIR employees, including the regulations concerning executive branch 
financial disclosure, financial interests, and employee 
responsibilities and conduct, as well as implementing SIGIR guidance 
and procedures issued in accordance with OGE Standards.

Section 9201.102 Prior Approval for Outside Employment and Other 
Outside Activities

    In accordance with 5 CFR 2635.803, the SIGIR has determined it is 
necessary for the purpose of administering its ethics program to 
require its employees to obtain approval before engaging in outside 
employment or activities. This approval requirement will help to ensure 
that potential ethical problems are resolved before employees begin 
outside employment or activities that could involve a violation of 
applicable statutes and standards of conduct.
    Section 9201.102(a) provides that a SIGIR employee, other than a 
special Government employee, must obtain advance written approval from 
the employee's supervisor and the concurrence of the Designated Agency 
Ethics Official (DAEO) or alternate DAEO before engaging in any outside 
employment except to the extent that the SIGIR DAEO or alternate DAEO 
has issued an instruction or manual pursuant to paragraph (e) of this 
section exempting an activity or class of activities from this 
requirement.
    Section 9201.102(b) broadly defines outside employment to cover any 
form of non-Federal employment or business relationship involving the 
provision of personal services, whether or not for compensation, other 
than the discharge of official duties. It includes writing when done 
under an arrangement with another person or entry for production or 
publication of the written product. It does not, however, include 
participation in the activities of non-profit charitable, religious, 
professional, social, fraternal, educational, recreational, public 
service, or civic organizations, unless such activities are for 
compensation other than reimbursement of expense, the organization's 
activities are devoted substantially to matters relating to the 
employee's official duties as defined in 5 CFR 2635.807(a)(2)(i)(B) 
through (E) and the employee will serve as an officer or director of 
the organization, or the activities will involve the provision of 
consultative or professional services. Consultative services means the 
provision of personal services by an employee, including the rendering 
of advice or consultation, which requires advanced knowledge in a field 
of science or learning customarily acquired by a course of specialized 
instruction and study in an institution of higher education, hospital, 
or similar facility. Professional services means the provision of 
personal services by an employee, including the rendering of advice or 
consultation, which involves application of the skills of a profession 
as defined in 5 CFR 2636.305(b)(1) or involves a fiduciary relationship 
as defined in 5 CFR 2636.305(b)(2). A note following paragraph (b) of 
Sec.  9201.102 pertains to the special approval requirement set out in 
both 18 U.S.C. 203(d) and 205(e) respectively, for certain 
representational activities otherwise covered by the conflict of 
interest restrictions on compensation and activities of employees in 
claims against and other matters affecting the Government. The note 
explains that an employee who wishes to act as agent or attorney for, 
or otherwise represent his parents, spouse, child, or any person for 
whom, or any estate for which, he is

[[Page 35958]]

serving as guardian, executor, administrator, trustee or other personal 
fiduciary in such matters must obtain the approval required by law of 
the Government official responsible for the employee's appointment in 
addition to the regulatory approval required in Sec.  9201.102.
    Section 9201.102(c) sets out the procedures for requesting prior 
approval to engage in outside employment initially, or within seven 
calendar days of a significant change in the nature or scope of the 
outside employment or the employee's official position.
    Section 9201.102(d) sets out the standard to be applied by the 
employee's supervisor and the DAEO or alternate DAEO in acting on 
requests for prior approval of outside employment as broadly defined by 
9201.102(b). Approval shall be granted only upon a determination that 
the outside employment is not expected to involve conduct prohibited by 
statute or Federal regulation, including 5 CFR part 2635.
    Section 9201.102(e) provides that the SIGIR DAEO or alternate DAEO 
can issue instructions or manual issuances governing the submission of 
requests for approval of outside employment, which may exempt 
categories of employment from the prior approval requirement of this 
section based on a determination that employment within those 
categories would generally be approved and is not likely to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635. The instructions or issuances may include examples of 
outside employment that are permissible or impermissible consistent 
with this part and 5 CFR part 2635.

Administrative Procedure Act

    Pursuant to 5 U.S.C. 553(b) the SIGIR finds good cause exists for 
waiving the general notice of proposed rulemaking and opportunity for 
public comment as to this interim rule.
    Notice and comment before the effective date are being waived 
because this rule concerns matters of agency organization, practice and 
procedure. However, written comments, which must be received by August 
23, 2010, can be submitted on this interim rule; any such comments will 
be considered before this rule is adopted as final.

Executive Orders 12866 and 12988

    Because this rule relates to SIGIR personnel, it is exempt from the 
provisions of Executive Orders Nos. 12866 and 12988.

Regulatory Flexibility Act

    SIGIR has determined, pursuant to the Regulatory Flexibility Act, 5 
U.S.C. chapter 6, that this rulemaking will not have a significant 
economic impact on a substantial number of small entities because it 
primarily affects SIGIR employees.

Paperwork Reduction Act

    The Paperwork Reduction Act, 44 U.S.C. chapter 35, does not apply 
because this rulemaking does not contain information collection 
requirements subject to the approval of the Office of Management and 
Budget.

Congressional Review Act

    SIGIR has determined that this rule is not a rule as defined in 5 
U.S.C. 804, and thus, does not require review by Congress.

List of Subjects in 5 CFR Part 9201

    Conflict of interest, Government employees.

0
Accordingly, for the reasons set forth in the preamble, the Special 
Inspector General for Iraq Reconstruction, with the concurrence of the 
Office of Government Ethics, is amending title 5 of the Code of Federal 
Regulations by adding a new chapter LXXXII, consisting of part 9201, to 
read as follows:

Chapter LXXXII--Special Inspector General for Iraq Reconstruction

PART 9201--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION

Sec.
9201.101 General.
9201.102 Prior approval for outside employment and other outside 
activities.

    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, 2635.802, 2635.803, 2635.807.


Sec.  9201.101  General.

    (a) Purpose. In accordance with 5 CFR 2635.105, the regulations in 
this part apply to employees of the Special Inspector General for Iraq 
Reconstruction (SIGIR) and supplement the Standards of Ethical Conduct 
for Employees of the Executive Branch contained in 5 CFR part 2635.
    (b) Cross-references. In addition to 5 CFR part 2635 and this part, 
SIGIR employees are required to comply with implementing guidance and 
procedures issued by SIGIR in accordance with 5 CFR 2635.105(c). SIGIR 
employees are also subject to the regulations concerning executive 
branch financial disclosure contained in 5 CFR part 2634, the 
regulations concerning executive branch financial interests contained 
in 5 CFR part 2640, and the regulations concerning executive branch 
employee responsibilities and conduct contained in 5 CFR part 735.


Sec.  9201.102  Prior approval for outside employment and other outside 
activities.

    (a) General requirement. Before engaging in any outside employment, 
with or without compensation, an employee of the SIGIR, other than a 
special Government employee, must obtain written approval from the 
employee's supervisor and the concurrence of the Designated Agency 
Ethics Official (DAEO) or the alternate DAEO, except to the extent that 
the SIGIR DAEO or alternate DAEO has issued an instruction or manual 
pursuant to paragraph (e) of this section exempting an activity or 
class of activities from this requirement. Nonetheless, special 
Government employees remain subject to other statutory and regulatory 
provisions governing their outside activities, including 18 U.S.C. 
203(c) and 205(c), as well as applicable provisions of 5 CFR part 2635.
    (b) Definition of employment. For purposes of this section, 
employment means any form of non-Federal employment or business 
relationship involving the provision of personal services, whether or 
not for compensation. It includes, but is not limited to, services as 
an officer, director, employee, agent, advisor, attorney, consultant, 
contractor, general partner, trustee, teacher, or speaker. It includes 
writing when done under an arrangement with another person for 
production or publication of the written product. The definition does 
not include participation in the activities of a nonprofit charitable, 
religious, professional, social, fraternal, educational, recreational, 
public service, or civic organization, unless:
    (1) The employee will receive compensation other than reimbursement 
of expenses;
    (2) The organization's activities are devoted substantially to 
matters relating to the employee's official duties as defined in 5 CFR 
2635.807(a)(2)(i)(B) through (E) and the employee will serve as officer 
or director of the organization; or
    (3) The activities will involve the provision of consultative or 
professional services. Consultative services means the provision of 
personal services by an

[[Page 35959]]

employee, including the rendering of advice or consultation, which 
requires advanced knowledge in a field of science or learning 
customarily acquired by a course of specialized instruction and study 
in an institution of higher education, hospital or similar facility. 
Professional services means the provision of personal service by an 
employee, including the rendering of advice or consultation, which 
involves application of the skills of a profession as defined in 5 CFR 
2636.305(b)(1) or involves a fiduciary relationship as defined in 5 CFR 
2636.305(b)(2).

    Note to Sec.  9201.102(b): There is a special approval 
requirement set out in both 18 U.S.C. 203(d) and 205(e) 
respectively, for certain representational activities otherwise 
covered by the conflict of interest restrictions on compensation and 
activities of employees in claims against and other matters 
affecting the Government. Thus, an employee who wishes to act as 
agent or attorney for, or otherwise represent his parents, spouse, 
child, or any person for whom, or any estate for which, he is 
serving as guardian, executor, administrator, trustee, or other 
personal fiduciary in such matters must obtain the approval required 
by law of the Government official responsible for the employee's 
appointment in addition to the regulatory approval required by this 
section.

    (c) Procedure for requesting approval. (1) The approval required by 
paragraph (a) of this section shall be requested by e-mail or other 
form of written correspondence at least 30 calendar days in advance of 
engaging in outside employment as defined in paragraph (b) of this 
section.
    (2) The request for approval to engage in outside employment or 
certain other activities shall set forth, at a minimum:
    (i) The name of the employer or organization;
    (ii) The nature of the legal activity or other work to be 
performed;
    (iii) The title of the position; and
    (iv) The estimated duration of the outside employment.
    (3) Upon a significant change in the nature or scope of the outside 
employment or in the employee's official position within the SIGIR, the 
employee must, within 7 calendar days of the change, submit a revised 
request for approval.
    (d) Standard for approval. Approval shall be granted only upon a 
determination that the outside employment is not expected to involve 
conduct prohibited by statute or Federal regulation, including 5 CFR 
part 2635.
    (e) DAEO's and alternate DAEO's responsibilities. The SIGIR DAEO or 
alternate DAEO may issue instructions or manual issuances governing the 
submission of requests for approval for outside employment. The 
instructions or manual issuances may exempt categories of employment 
from the prior approval requirement of this section based on a 
determination that employment within those categories of employment 
would generally be approved and is not likely to involve conduct 
prohibited by statute or Federal regulation, including 5 CFR part 2635. 
The DAEO or alternate DAEO may include in these instructions or 
issuances examples of outside employment that are permissible or 
impermissible consistent with this part and 5 CFR 2635.

Stuart W. Bowen, Jr.,
Special Inspector General for Iraq Reconstruction.
    Approved: June 10, 2010.
Robert I. Cusick,
Director, Office of Government Ethics.
[FR Doc. 2010-15103 Filed 6-23-10; 8:45 am]
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