[Federal Register Volume 79, Number 111 (Tuesday, June 10, 2014)]
[Proposed Rules]
[Pages 33138-33140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-13273]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 79, No. 111 / Tuesday, June 10, 2014 / 
Proposed Rules  

[[Page 33138]]



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: Proposed rule.

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SUMMARY: OGE is issuing a proposed rule to revoke the designation of 
one departmental component of one agency and designate a new bureau as 
a departmental component for purposes of the one-year post-employment 
conflict of interest restriction in the United States Code; to revoke 
the designation of two departmental components of another agency and 
designate their successor bureau as a departmental component; to change 
the name of an existing departmental component; and to revoke the 
designation of a departmental component that was abolished.

DATES: Comments are invited and must be received on or before July 10, 
2014.

ADDRESSES: You may submit comments, in writing, to OGE on this proposed 
rule, identified by RIN 3209-AA14, by any of the following methods:
    E-Mail: [email protected]. Include the reference ``Proposed Rule 
Revising Departmental Component Designations'' in the subject line of 
the message. Fax: 202-482-9237.
    Mail/Hand Delivery/Courier: Office of Government Ethics, Suite 500, 
1201 New York Avenue NW., Washington, DC 20005-3917, Attention: Amy E. 
Braud, Associate Counsel.
    Instructions: All submissions must include OGE's agency name and 
the Regulation Identifier Number (RIN), 3209-AA14, for this rulemaking.

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

SUPPLEMENTARY INFORMATION: 

A. Substantive Discussion: Revocation and Addition of Departmental 
Components

    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 2641.302(e)(3). 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 
of undue influence or unfair advantage based on past Government 
service, and that the component is an agency or bureau, within a parent 
agency, that exercises functions which are distinct and separate from 
the functions of the parent agency and from the functions of other 
components of that parent. 5 CFR 2641.302(c)(1).
    Pursuant to the procedures prescribed in 5 CFR 2641.302(e), two 
departments have forwarded written requests to OGE to amend their 
listings in appendix B. After carefully reviewing the requested changes 
in light of the criteria in 18 U.S.C. 207(h) as implemented in 5 CFR 
2641.302(c), OGE is proposing to grant these requests and amend 
appendix B to 5 CFR part 2641 as explained below.
    The Department of Health and Human Services has requested that OGE 
remove the Administration on Aging (AoA) from its list of component 
designations and designate in its place the Administration for 
Community Living as a distinct and separate component of the Department 
of Health and Human Services for purposes of 18 U.S.C. 207(c). On April 
18, 2012, the AoA ceased to be an operating division within the 
Department of Health and Human Services and became a subcomponent of a 
new operating division within the Department, the Administration for 
Community Living.
    The mission of the Administration for Community Living is to 
maximize the self-determination, well-being, and health of older 
adults, people with disabilities, and their families and caregivers. 
The Administration for Community Living is the primary entity within 
the Department to direct development, administration, and advancement 
of aging and disability programs.
    In addition to the AoA, the Administration for Community Living is 
composed of the Administration on Intellectual and Developmental 
Disabilities and the Center for Disability and Aging Policy. The 
Administration

[[Page 33139]]

on Intellectual and Developmental Disabilities advises the Secretary of 
the Department of Health and Human Services on issues that relate to 
individuals who have intellectual and developmental disabilities. It 
provides support to the States and to local communities for programs 
that increase the independence and productivity of these individuals. 
The Center for Disability and Aging Policy plans and oversees the 
implementation of policies, programs, and special initiatives that 
address the needs of older Americans and persons with disabilities.
    According to the Department of Health and Human Services, the 
Administration for Community Living exercises functions that are 
distinct and separate from the functions of the parent Department and 
from every other agency within the Department.
    The Department of the Treasury has requested that OGE remove the 
Financial Management Service (FMS) and the Bureau of Public Debt (BPD) 
from its list of component designations and in their place designate 
the Bureau of the Fiscal Service as a distinct and separate component 
of the Department of the Treasury for purposes of 18 U.S.C. 207(c). The 
Department of the Treasury consolidated FMS and BPD into a new entity, 
the Bureau of the Fiscal Service. This consolidation was effective on 
October 7, 2012. See Treas. Order 136-01 (October 7, 2012). The new 
bureau will carry out the functions of the FMS and the BPD, which 
include borrowing the money needed to operate the Federal government, 
administering the public debt, receiving and disbursing public monies, 
and maintaining government accounts.
    According to the Department of the Treasury, the functions of the 
Bureau of the Fiscal Service are distinct and separate from the 
functions of the parent Department and from every other agency within 
the Department. This distinction was previously recognized when OGE 
designated its predecessor bureaus, the FMS and the BPD, as components 
for purposes of 18 U.S.C. 207(c).
    Accordingly, OGE is proposing to grant the request of the 
Department of the Treasury and is proposing to amend the Department of 
the Treasury listing in appendix B to part 2641 to remove the FMS and 
the BPD from the component designation list and to designate the Bureau 
of the Fiscal Service as a new component as discussed.
    The Department of the Treasury has also requested that OGE revise 
the name of one component currently listed in appendix B to part 2641, 
the Bureau of the Mint. According to the Department, since the 1992 
amendments to 31 U.S.C. 304, the statutory name, and the name used in 
all official publications, of this bureau is the ``United States 
Mint.'' OGE is proposing to amend the Department of the Treasury 
listing in appendix B to reflect the current name of this component.
    Additionally, the Department of the Treasury has requested that OGE 
remove the Office of Thrift Supervision (OTS) from its list of 
component designations. Under the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act), Public Law 111-203, 124 Stat. 
1376, all OTS functions were distributed to the Office of the 
Comptroller of the Currency, the Federal Deposit Insurance Corporation, 
the Federal Reserve Board, and the Bureau of Consumer Financial 
Protection. Under Title III of the Dodd-Frank Act, all OTS functions 
relating to Federal savings and loan associations and the rulemaking 
authority of OTS relating to all savings associations, both Federal and 
State, were transferred to the Office of the Comptroller of the 
Currency as of July 21, 2011. Also as of July 21, 2011, the other 
functions of OTS were transferred to the Federal Deposit Insurance 
Corporation, the Federal Reserve Board, and the Bureau of Consumer 
Financial Protection. Pursuant to Section 313 of the Dodd-Frank Act, 
OTS was abolished 90 days after the date of the transfer of its 
functions to other agencies.
    Because OTS has been abolished, OGE is proposing to grant the 
request of the Department of the Treasury and is proposing to amend the 
Department of the Treasury listing in appendix B to part 2641 to remove 
OTS from the component designation list. The Office of the Comptroller 
of the Currency has been designated as a component since January 1, 
1991 and would remain designated as a component.
    As indicated in 5 CFR 2641.302(f), a designation ``shall be 
effective on the date the rule creating the designation is published in 
the Federal Register and shall be effective as to individuals who 
terminated senior service either before, on or after 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 designations 
made in this proposed rule, as well as the name corrections being 
reflected herein (which do not affect the underlying component 
designation date), would be effective on the date the final rule is 
published in the Federal Register.
    As also indicated in 5 CFR 2641.302(f), revocation is effective 90 
days after the effective date of the rule that revokes the designation. 
Accordingly, the component designation revocations made in this 
proposed rule would take effect 90 days after the date the final rule 
is published in the Federal Register. Revocations are not effective as 
to any individual terminating senior service prior to the expiration of 
the 90-day period.

B. Matters of Regulatory Procedure

Regulatory Flexibility Act

    As Director of OGE, I certify under the Regulatory Flexibility Act 
(5 U.S.C. chapter 6) that this proposed 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 proposed 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), this proposed rule would 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

    OGE has determined that this proposed 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 the final rulemaking document is sent to the 
Office of the Federal Register for publication in the Federal Register.

Executive Order 12866

    In proposing this rule, OGE 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 proposed rule has not been reviewed by the Office of Management 
and Budget under Executive Order 12866 since it deals with agency 
organization, management,

[[Page 33140]]

and personnel matters and is not ``significant'' thereunder.

Executive Order 12988

    As Director of OGE, I have reviewed this proposed amendatory 
regulation 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: June 2, 2014.
Walter M. Shaub, Jr.,
Director, Office of Government Ethics.

    Accordingly, for the reasons set forth in the preamble, OGE 
proposes to amend 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 CFR 42547, 3 CFR, 1990 Comp., p. 306.

0
2. Appendix B to part 2641 is amended by revising the listings for the 
Department of Health and Human Services and the Department of the 
Treasury to read as follows:

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

* * * * *

Parent: Department of Health and Human Services

    Components:
    Administration on Aging (effective May 16, 1997; expires 90 days 
after the date of publication of the final rule in the Federal 
Register).
    Administration for Children and Families (effective January 28, 
1992).
    Administration for Community Living (effective upon publication 
of the final rule in the Federal Register).
    Agency for Healthcare Research and Quality (formerly Agency for 
Health Care Policy and Research) (effective May 16, 1997).
    Agency for Toxic Substances and Disease Registry (effective May 
16, 1997).
    Centers for Disease Control and Prevention (effective May 16, 
1997).
    Centers for Medicare and Medicaid Services (formerly Health Care 
Financing Administration).
    Food and Drug Administration.
    Health Resources and Services Administration (effective May 16, 
1997).
    Indian Health Service (effective May 16, 1997).
    National Institutes of Health (effective May 16, 1997).
    Substance Abuse and Mental Health Services Administration 
(effective May 16, 1997).
* * * * *

Parent: Department of the Treasury

    Components:
    Alcohol and Tobacco Tax and Trade Bureau (effective November 23, 
2004).
    Bureau of Engraving and Printing.
    Bureau of the Fiscal Service (effective upon publication of the 
final rule in the Federal Register).
    Bureau of the Public Debt (expires 90 days after the date of 
publication of the final rule in the Federal Register).
    Comptroller of the Currency.
    Financial Crimes Enforcement Center (FinCEN) (effective January 
30, 2003).
    Financial Management Service (expires 90 days after the date of 
publication of the final rule in the Federal Register).
    Internal Revenue Service.
    Office of Thrift Supervision (expires 90 days after the date of 
publication of the final rule in the Federal Register).
    United States Mint (formerly listed as Bureau of the Mint).
* * * * *
0
3. Appendix B to part 2641 is further amended by removing the 
Administration on Aging from the listing for the Department of Health 
and Human Services and by removing the Bureau of the Public Debt, the 
Financial Management Service, and the Office of Thrift Supervision from 
the listing for the Department of the Treasury.

[FR Doc. 2014-13273 Filed 6-9-14; 8:45 am]
BILLING CODE 6345-02-P