[Federal Register Volume 81, Number 97 (Thursday, May 19, 2016)]
[Rules and Regulations]
[Pages 31503-31504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11806]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 7

[Docket No. FR-5645-F-01]
RIN 2501-AD78


Removal of the Equal Employment Opportunity; Policy, Procedures 
and Programs Regulation

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: To increase the effectiveness of its Equal Employment 
Opportunity (EEO) program and streamline HUD's regulations, HUD has 
decided to remove 24 CFR part 7 (HUD's EEO regulation), while 
continuing to publish its EEO policy and procedures as administrative 
guidance. This action is necessary because HUD's EEO regulation has 
been superseded by the Equal Employment Opportunity Commission (EEOC) 
regulation at 29 CFR part 1614 (EEOC's regulation) and therefore does 
not establish binding requirements. In addition, HUD's EEO regulation 
was intended to conform to and mirror EEOC's regulation. As EEOC's 
regulation has been revised, HUD's EEO regulation has become outdated 
and may create confusion for parties having to reconcile differing HUD 
and EEOC regulations. By consolidating its EEO policy and procedures in 
administrative guidance, HUD can more effectively incorporate 
amendments to EEOC's regulation, highlight HUD-specific guidance, and 
simplify the procedures for parties seeking to exercise their EEO 
rights.

DATES: Effective: June 20, 2016.

FOR FURTHER INFORMATION CONTACT: John P. Benison, Director, Office of 
Departmental Equal Employment Opportunity, Department of Housing and 
Urban Development, 451 7th Street SW., Room 2102, Washington, DC 20410; 
telephone number 202-708-3362 (this is not a toll-free number). Persons 
with hearing or speech impairments may access this number through TTY 
by calling the Federal Relay Service at 800-877-8339 (this is a toll-
free number).

SUPPLEMENTARY INFORMATION: 

I. Background

    HUD policy is to provide equality of employment opportunity for all 
persons, and to prohibit discrimination because of race, color, 
religion, sex (including gender identity, sexual orientation, and 
pregnancy), national origin, age, disability, or genetic information in 
all facets of employment. These policies are integral to HUD's mission 
and underlie its efforts to promote economic and community development; 
increase homeownership; create affordable housing opportunities for 
low-income Americans; enforce the Nation's fair housing laws; and 
support the homeless, the elderly, people with disabilities, and people 
living with AIDS. Toward this goal, HUD remains committed to promoting 
affirmative employment through the removal of barriers and by positive 
actions at every management level, including the early resolution of 
EEO disputes.
    To increase the effectiveness of HUD's EEO program and streamline 
HUD's regulations, HUD has decided to consolidate its EEO policy and 
procedure, currently codified in HUD's EEO regulation at 24 CFR part 7, 
in administrative guidance that is already posted on HUD's Web site. 
This action is necessary because HUD's EEO regulation has been 
superseded by EEOC regulation, and, as such, does not establish binding 
requirements. In addition, this action allows HUD to ensure that its 
EEO policy and procedures are accurate and up-to-date.
    HUD's EEO regulation was promulgated on April 23, 2001 (66 FR 
20564). When published, the rule was intended to mirror and conform to 
EEOC's ``Federal Sector Equal Employment Opportunity'' regulation at 29 
CFR part 1614. Since promulgation of HUD's EEO Regulation, EEOC's 
regulation at 29 CFR part 1614 was revised several times: On May 21, 
2002, to implement the amendment of section 501 of the Rehabilitation 
Act, under the Rehabilitation Act Amendments of 1992; on August 2, 
2006, to address the posting requirements of the Notification and 
Federal Employee Antidiscrimination and Retaliation Act of 2002 (71 FR 
43644); on December 7, 2009, to include references to title II of the 
Genetic Information Nondiscrimination Act of 2008 (74 FR 63981); on 
July 25, 2012, to reform the Federal sector EEO complaint process (77 
FR 43498); and on various other dates to implement clerical or 
procedural changes. As a result, HUD's EEO Regulation no longer mirrors 
EEOC's regulation and is now outdated. HUD is concerned that this may 
result in confusion for parties required to reconcile HUD's EEO 
regulation and EEOC's regulation. Further, the provisions of HUD's EEO 
regulation that expand on EEOC's regulation may add further confusion 
by adding procedures that apply only to HUD and not to those employees 
or applicants seeking information about Federal equal employment 
opportunity policies, procedures, and programs.
    To remedy this situation, HUD is removing 24 CFR part 7. By 
removing HUD's EEO regulation and consolidating all of HUD's EEO policy 
and procedures in administrative guidance, HUD can more effectively 
incorporate amendments to EEOC's regulation, highlight HUD specific 
guidance, and simplify the procedures for parties seeking to exercise 
their EEO rights.
    HUD consulted with the EEOC in development of this final rule, 
consistent with ``Executive Order 12067--Providing for Coordination of 
Federal Equal Employment Opportunity programs'' (43 FR 28967). 
Executive Order 12067 requires that ``agencies shall advise and offer 
to consult with the Equal Employment Opportunity Commission during the 
development of any proposed rules, regulations, policies, procedures or 
orders concerning equal employment opportunity.''

II. Justification for Final Rulemaking

    HUD generally publishes a rule for public comment before issuing a 
rule for

[[Page 31504]]

effect, in accordance with its own regulations on rulemaking at 24 CFR 
part 10. Part 10 provides for exceptions to the general rule if the 
agency finds good cause to omit advance notice and public 
participation. The good cause requirement is satisfied when prior 
public procedure is ``impracticable, unnecessary, or contrary to the 
public interest'' (24 CFR 10.1; see also 5 U.S.C. 553(b)). HUD finds 
that public notice and comment are unnecessary for this rulemaking 
because HUD's EEO regulation is obsolete and unnecessary, and, as such, 
its removal does not establish or affect substantive policy. HUD's EEO 
regulation was initially promulgated to mirror and conform to EEOC's 
regulation, but was later effectively superseded as EEOC revised its 
regulations. For the sake of accuracy and flexibility, HUD will address 
in administrative guidance, rather than in the Code of Federal 
Regulations, any future changes to its internal EEO policy and 
procedures. Additionally, this will eliminate confusion resulting from 
having two regulations that address the same EEO laws yet differ in 
currency and scope.
    For these reasons, HUD has determined that it is unnecessary to 
delay the effectiveness of this rule in order to solicit prior public 
comment.

III. Findings and Certification

Regulatory Review--Executive Orders 12866 and 13563

    Under Executive Order 12866 (Regulatory Planning and Review), a 
determination must be made whether a regulatory action is significant 
and therefore subject to review by the Office of Management and Budget 
(OMB) in accordance with the requirements of the order. Executive Order 
13563 (Improving Regulations and Regulatory Review) directs executive 
agencies to analyze regulations that are ``outmoded, ineffective, 
insufficient, or excessively burdensome, and to modify, streamline, 
expand, or repeal them in accordance with what has been learned. 
Executive Order 13563 also directs that, where relevant, feasible, and 
consistent with regulatory objectives, and to the extent permitted by 
law, agencies are to identify and consider regulatory approaches that 
reduce burdens and maintain flexibility and freedom of choice for the 
public.
    Since this final rule covers internal HUD operations and pertains 
only to current/former employees and applicants for employment at HUD, 
it is not subject to review under Executive Order 12866. As discussed 
in this preamble, the final rule would amend HUD's personnel 
regulations by removing HUD's EEO regulation that, when issued, was 
established to conform to the EEOC's regulation but is now outdated. 
HUD is consolidating its EEO policy and guidance in administrative 
guidance, allowing HUD more flexibility to effectively incorporate 
amendments to EEOC's regulation and simplify procedures for parties 
seeking to exercise their EEO rights. This final rule is, nevertheless, 
consistent with the goals of Executive Order 13563, to reduce 
regulatory burdens and maintain maximum agency flexibility.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Because HUD has determined that good cause exists to issue this rule 
without prior public comment, this rule is not subject to the 
requirement to publish an initial or final regulatory flexibility 
analysis under the RFA as part of such action.

Unfunded Mandates Reform

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \1\ 
requires that an agency prepare a budgetary impact statement before 
promulgating a rule that includes a Federal mandate that may 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 one 
year. If a budgetary impact statement is required, section 205 of UMRA 
also requires an agency to identity and consider a reasonable number of 
regulatory alternatives before promulgating a rule.\2\ However, the 
UMRA applies only to rules for which an agency publishes a general 
notice of proposed rulemaking. As discussed above, HUD has determined, 
for good cause, that prior notice and public comment is not required on 
this rule and, therefore, the UMRA does not apply to this final rule.
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    \1\ 2 U.S.C. 1532.
    \2\ 2 U.S.C. 1534.
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Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on State and local 
governments and is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This rule will not have federalism 
implications and would not impose substantial direct compliance costs 
on State and local governments or preempt State law within the meaning 
of the Executive order.

Environmental Review

    This final rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
final rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

List of Subjects in 24 CFR Part 7

    Administrative practice and procedure, Equal employment 
opportunity, Organization and functions (Government agencies).

PART 7--[REMOVED]

0
Accordingly, under 42 U.S.C. 3535(d) and as discussed in the preamble, 
the Department of Housing and Urban Development is amending 24 CFR by 
removing part 7.

    Dated: May 12, 2016.
Nani A. Coloretti,
Secretary.
[FR Doc. 2016-11806 Filed 5-18-16; 8:45 am]
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