[Federal Register Volume 86, Number 64 (Tuesday, April 6, 2021)]
[Rules and Regulations]
[Pages 17691-17692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06971]



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 Rules and Regulations
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  Federal Register / Vol. 86, No. 64 / Tuesday, April 6, 2021 / Rules 
and Regulations  

[[Page 17691]]



OFFICE OF GOVERNMENT ETHICS

5 CFR Part 2641

RIN 3209-AA58


Post-Employment Conflict of Interest Restrictions; Departmental 
Component Designations

AGENCY: Office of Government Ethics.

ACTION: Final rule.

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

SUMMARY: The U.S. Office of Government Ethics (OGE) is issuing this 
final rule to revise the component designations of one agency for 
purposes of the one-year post-employment conflict of interest 
restriction for senior employees. Specifically, based on the 
recommendation of the Department of Defense, OGE is designating one new 
component to its regulations.

DATES: This rule is effective April 6, 2021.

FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate 
Counsel, Office of Government Ethics, Suite 500, 1201 New York Avenue 
NW, Washington, DC 20005-3917; Telephone: (202) 482-9300; TTY: (800) 
877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    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 one-year 
post-employment conflict of interest restriction for senior employees. 
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 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 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.
    Pursuant to the procedures prescribed in 5 CFR 2641.302(e), the 
Department of Defense (DoD) forwarded a written request to OGE to amend 
its listing in appendix B to part 2641, and on December 1, 2020, OGE 
published a proposed rule in the Federal Register that proposed to 
designate the Defense Advanced Research Projects Agency (DARPA) as a 
separate component of DoD for purposes of 18 U.S.C. 207(c). The 
proposed rule provided a 30-day comment period, which ended on December 
31, 2020. OGE did not receive any comments. The rationale for the rule, 
which OGE is now adopting as final, is explained in the proposed rule 
preamble at 85 FR 77014.
    For the reasons stated in the preamble to the proposed rule, OGE is 
granting the request of the DoD to amend its listing to designate DARPA 
as a distinct and separate component of the agency for purposes of 18 
U.S.C. 207(c). 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 in appendix B to part 2641 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 in this rule for DARPA is effective on the 
date the final rule is published in the Federal Register.

II. Matters of Regulatory Procedure

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 final 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 final 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 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 final rule is not a major rule as defined in 5 U.S.C. chapter 
8, Congressional Review of Agency Rulemaking.

Executive Orders 13563 and 12866

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select the regulatory approaches that 
maximize net benefits (including economic, environmental, public health 
and safety effects, distributive impacts, and equity). Executive Order 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
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 Executive Orders 12866 and 13563. This rule has 
not been reviewed by the Office of Management and Budget under 
Executive Order 12866 because it is not a ``significant'' regulatory 
action for the purposes of that order.

Executive Order 12988

    As Director of the Office of Government Ethics, I have reviewed 
this

[[Page 17692]]

final 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: March 31, 2021.
Emory Rounds,
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 set forth below:

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. Amend appendix B to part 2641 by revising the listing for the 
Department of Defense to read as follows:

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

* * * * *

Parent: Department of Defense

    Components:
    Defense Advanced Research Projects Agency (DARPA) (effective 
April 6, 2021).
    Department of the Air Force.
    Department of the Army.
    Department of the Navy.
    Defense Information Systems Agency.
    Defense Intelligence Agency.
    Defense Logistics Agency.
    Defense Threat Reduction Agency (effective February 5, 1999).
    National Geospatial-Intelligence Agency (formerly National 
Imagery and Mapping Agency) (effective May 16, 1997).
    National Reconnaissance Office (effective January 30, 2003).
    National Security Agency.
* * * * *
[FR Doc. 2021-06971 Filed 4-5-21; 8:45 am]
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