[Federal Register Volume 76, Number 101 (Wednesday, May 25, 2011)]
[Rules and Regulations]
[Pages 30245-30246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-12798]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 76, No. 101 / Wednesday, May 25, 2011 / Rules 
and Regulations  

[[Page 30245]]



OFFICE OF GOVERNMENT ETHICS

5 CFR Part 2641

RIN 3209-AA14


Post-Employment Conflict of Interest Restrictions; Revision of 
Departmental Component Designations

AGENCY: Office of Government Ethics (OGE).

ACTION: Final rule, amendments.

-----------------------------------------------------------------------

SUMMARY: OGE is issuing this rule to designate an additional 
departmental component for purposes of the one-year post-employment 
conflict of interest restriction at 18 U.S.C. 207(c).

DATES: The amendments to appendix B to part 2641 (as set forth in 
amendatory paragraph 2) are effective May 25, 2011.

FOR FURTHER INFORMATION CONTACT: Amy E. Braud, Attorney-Advisor, Office 
of General Counsel and Legal Policy, Office of Government Ethics, 
Telephone: 202-482-9300; TTY: 800-877-8339; FAX: 202-482-9237.

SUPPLEMENTARY INFORMATION:

A. Substantive Discussion

Addition of Departmental Component

    The Director of OGE (Director) is authorized by 18 U.S.C. 207(h) to 
designate distinct and separate departmental or agency components in 
the executive branch for purposes of 18 U.S.C. 207(c). The 
representational bar of 18 U.S.C. 207(c) usually extends to the whole 
of any department or agency in which a former senior employee served in 
any capacity during the year prior to termination from a senior 
employee position. However, 18 U.S.C. 207(h) provides that whenever the 
Director of OGE determines that an agency or bureau within a department 
or agency in the executive branch exercises functions which are 
distinct and separate from the remaining functions of the department or 
agency and there exists no potential for use of undue influence or 
unfair advantage based on past Government service, the Director shall 
by rule designate such agency or bureau as a separate component of that 
department or agency. As a result, a former senior employee who served 
in a ``parent'' department or agency is not barred by 18 U.S.C. 207(c) 
from making communications to or appearances before any employees of 
any designated component of that parent, but is barred as to employees 
of that parent or of other components that have not been separately 
designated. Moreover, a former senior employee who served in a 
designated component of a parent department or agency is barred from 
communicating to or making an appearance before any employee of that 
component, but is not barred as to any employee of the parent or of any 
other component.
    Under 18 U.S.C. 207(h)(2), component designations do not apply to 
persons employed at a rate of pay specified in or fixed according to 
subchapter II of 5 U.S.C. chapter 53 (the Executive Schedule). 
Component designations are listed in appendix B to 5 CFR part 2641.
    The Director of OGE regularly reviews the component designations 
and determinations and, in consultation with the department or agency 
concerned, makes such additions and deletions as are necessary. 
Specifically, the Director ``shall by rule make or revoke a component 
designation after considering the recommendation of the designated 
agency ethics official.'' 5 CFR 2641.201(e)(3)(iii). Before designating 
an agency component as distinct and separate for purposes of 18 U.S.C. 
207(c), the Director must find that there exists no potential for use 
by former senior employees of undue influence or unfair advantage based 
on past Government service, and that the component is an agency or 
bureau within a department or agency that exercises functions which are 
distinct and separate from the functions of the parent department or 
agency and from the functions of other components of that parent. 5 CFR 
2641.201(e)(6).
    Pursuant to the procedures prescribed in 5 CFR 2641.201(e), one 
department has forwarded a written request to OGE to amend its listing 
in appendix B. After carefully reviewing the requested change in light 
of the criteria in 18 U.S.C. 207(h) as implemented in 5 CFR 
2641.210(e)(6), the Director of OGE has determined to grant this 
request and amend appendix B to 5 CFR part 2641 as explained below.
    The Department of Labor has requested that OGE designate the 
Pension Benefit Guaranty Corporation (PBGC) as a distinct and separate 
component of the Department of Labor for purposes of 18 U.S.C. 207(c). 
The PBGC is a wholly owned Federal corporation created by the Employee 
Retirement Income Security Act (ERISA) of 1974, Public Law 93-406, 88 
Stat. 829, and established within the Department of Labor. 29 U.S.C. 
1302(a). According to the Department of Labor, PBGC performs a 
Government function that is separate and distinct from every other 
agency within the Department of Labor. The mission of the PBGC is to 
protect the retirement income of those workers who have defined benefit 
plans with their employers.
    Accordingly, the Director is granting the request of the Department 
of Labor and therefore is amending the Department of Labor listing in 
appendix B to part 2641 to designate the PBGC as a new component.
    As indicated in 5 CFR 2641.201(e)(4), a designation ``shall be 
effective as of the effective date of the rule that creates the 
designation, but shall not be effective as to employees who terminated 
senior service prior to that date.'' Initial designations were 
effective as of January 1, 1991. The effective date of subsequent 
designations is indicated by means of parenthetical entries in appendix 
B. The new component designation made by this rulemaking document is 
effective May 25, 2011.

B. Matters of Regulatory Procedure

Administrative Procedure Act

    Pursuant to 5 U.S.C. 553, as the Director of the Office of 
Government Ethics, I find that good cause exists for waiving the 
general requirements for notice of proposed rulemaking, opportunity for 
public comment, and a 30-day delayed effective date. It is important 
and in the public interest that the designation herein by OGE of the 
specified separate departmental component be published in the Federal 
Register and take effect as promptly as possible.

[[Page 30246]]

Regulatory Flexibility Act

    As Director of the Office of Government Ethics, I certify under the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) that this rule will not 
have a significant economic impact on a substantial number of small 
entities because it affects only Federal departments and agencies and 
current and former Federal employees.

Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply 
to this rule because it does not contain information collection 
requirements that require the approval of the Office of Management and 
Budget.

Unfunded Mandates Reform Act

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

Congressional Review Act

    The Office of Government Ethics has determined that this rulemaking 
involves a non-major rule under the Congressional Review Act (5 U.S.C. 
chapter 8) and will submit a report thereon to the U.S. Senate, House 
of Representatives and Government Accountability Office in accordance 
with that law at the same time this rulemaking document is sent to the 
Office of the Federal Register for publication in the Federal Register.

Executive Order 12866

    In promulgating this final rule, the Office of Government Ethics 
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 ``significant'' under the order.

Executive Order 12988

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

List of Subjects in 5 CFR Part 2641

    Conflict of interests, Government employees.

    Approved: May 18, 2011.
Robert I. Cusick,
Director, Office of Government Ethics.

    Accordingly, for the reasons set forth in the preamble, the Office 
of Government Ethics is amending 5 CFR part 2641 as follows:

PART 2641--POST-EMPLOYMENT CONFLICT OF INTEREST RESTRICTIONS

0
1. The authority citation for part 2641 continues to read as follows:

    Authority:  5 U.S.C. App. (Ethics in Government Act of 1978); 18 
U.S.C. 207; 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.


0
2. Effective May 25, 2011, appendix B to part 2641 is amended by 
revising the listing for the Department of Labor to read as follows:

Appendix B to Part 2641--Agency Components for Purposes of 18 U.S.C. 
207(c)

* * * * *

Parent: Department of Labor

Components:
    Bureau of Labor Statistics.
    Employee Benefits Security Administration (formerly Pension and 
Welfare Benefits Administration) (effective May 16, 1997).
    Employment and Training Administration.
    Employment Standards Administration.
    Mine Safety and Health Administration.
    Occupational Safety and Health Administration.
    Office of Disability Employment Policy (effective January 30, 
2003).
    Pension Benefit Guaranty Corporation (effective May 25, 2011).
* * * * *
[FR Doc. 2011-12798 Filed 5-23-11; 8:45 am]
BILLING CODE 6345-03-P