[Federal Register Volume 60, Number 44 (Tuesday, March 7, 1995)]
[Rules and Regulations]
[Pages 12396-12398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5553]
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OFFICE OF MANAGEMENT AND BUDGET
5 CFR Part 1300 and Chapter LXXVII
RIN 3209-AA15
Supplemental Standards of Ethical Conduct for Employees of the
Office of Management and Budget
AGENCY: Office of Management and Budget (OMB).
ACTION: Final rule.
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SUMMARY: The Office of Management and Budget, with the concurrence of
the Office of Government Ethics (OGE), is issuing regulations for
employees of the OMB that supplement the Standards of Ethical Conduct
for Employees of the Executive Branch issued by OGE with a requirement
for prior approval of outside employment. The Office of Management and
Budget also is repealing its old standards of conduct regulations and
is inserting in their place a cross-reference to the new provisions and
to applicable executive branch-wide standards of ethical conduct, as
well as to applicable financial disclosure regulations.
EFFECTIVE DATE: These regulations are effective on March 7, 1995.
FOR FURTHER INFORMATION CONTACT: Darrell A. Johnson, OMB Designated
Agency Ethics Official (DAEO), (202) 395-5715, or McGavock D. Reed, OMB
Alternate DAEO, (202) 395-3563.
SUPPLEMENTARY INFORMATION:
I. Background
On August 7, 1992, OGE published new Standards of Ethical Conduct
for Employees of the Executive Branch (Standards). See 57 FR 35006-
35067, as corrected at 57 FR 48557 and 57 FR 52583, with additional
grace period extensions at 59 FR 4779-4780 and 60 FR 6390-6391. The
Standards, codified at 5 CFR part 2635 and effective February 3, 1993,
established uniform standards of ethical conduct that apply to all
executive branch personnel.
With the concurrence of OGE, 5 CFR 2635.105 authorizes executive
branch agencies to publish agency-specific supplemental regulations
necessary to implement their respective ethics programs. With OGE's
concurrence, OMB has determined that the following supplemental
regulations, being codified in new 5 CFR chapter LXXVII, consisting of
part 8701, are necessary to the success of its ethics program. The
Office of Management and Budget is simultaneously repealing its
superseded Standards of Conduct at 5 CFR part 1300 and is replacing
those provisions with a single section that provides cross-references
to 5 CFR parts 2634 and 2635, and to OMB's new supplemental
regulations.
II. Analysis of the Regulations
Section 8701.101 General
Section 8701.101 explains that the regulations contained in the
final rule will apply to all OMB employees and are supplemental to the
executive branch-wide standards. Employees of OMB also are subject to
the Standards of Ethical Conduct for Employees of the Executive Branch
at 5 CFR part 2635 and the executive branch financial disclosure
regulations at 5 CFR part 2634.
Section 8701.102 Prior Approval for Outside Employment
Under 5 CFR 2635.803, agencies may, by supplemental regulation,
require employees to obtain prior approval before engaging in outside
employment. Under 5 CFR 1300.735-15(b) which is now being revoked, OMB
employees have long been required to obtain advance approval for
outside employment, and OMB has determined that it is necessary to the
administration of its ethics program to continue to require that
employees obtain prior approval before engaging in outside employment.
New paragraph 8701.102, therefore, continues the basic requirement for
prior approval of outside employment. By adding a definition of
``employment,'' however, it clarifies the circumstances under which
prior approval must be obtained and, by specifying the information to
be provided as part of the employee's request, it provides additional
guidance for employees who are required to submit requests for
approval.
Whereas 5 CFR 1300.735-15(b) had specified that approval was to be
obtained from the Assistant to the Director for Administration, section
8701.102 contains a multiple approval requirement. In addition to the
approval of his or her division of office head, the employee must
obtain the approval of the OMB General Counsel, as well as that of the
designated agency ethics official.
The standard to be used in approving or denying requests for
approval of outside employment is set forth at section 8701.102(b), in
part, to highlight [[Page 12397]] the fact that section 8701.102 does
not itself provide a basis to deny any OMB employee's request for
approval. The basis for disapproval, if any, must be found in
applicable statutes or the executive branch-wide Standards.
III. Repeal of the Old OMB Standards of Conduct Regulations
Because the OMB's Standards of Conduct have been largely superseded
by the new executive branch financial disclosure regulations at 5 CFR
parts 2634 and by the new executive branch-wide Standards at 5 CFR part
2635 as supplemented by the regulations contained in new 5 CFR part
8701, OMB is repealing all of existing 5 CFR part 1300. To ensure that
employees are on notice of the ethical standards to which they are
subject, the OMB is replacing its old standards at 5 CFR part 1300 with
a residual provision that cross-references 5 CFR parts 2634, 2635 and
8701.
IV. Matters of Regulatory Procedure
Administrative Procedure Act
The Office of Management and Budget has found that good cause
exists under 5 U.S.C. 553(b) and (d)(3) for waiving, as unnecessary and
contrary to the public interest, the general notice of proposed
rulemaking and the 30 day delay in effectiveness as to this final rule
and repeal. This supplemental regulation is essentially a restatement
of a rule previously contained in the OMB Standards of Conduct.
Furthermore, this rulemaking is related to the OMB organization,
procedure and practice.
Executive Order 12866
In promulgating this final rule, OMB has adhered to the regulatory
philosophy and the applicable principles of regulations set forth in
section 1 of Executive Order 12866, Regulatory Planning and Review.
This regulation is not deemed ``significant'' under that Executive
order.
Regulatory Flexibility Act
The Office of Management and Budget has determined under the
Regulatory Flexibility Act (5 U.S.C. chapter 6) that this regulation
will not have a significant impact on small business entities because
it affects only OMB employees.
Paperwork Reduction Act
The Office of Management and Budget has determined that the
Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply because
this regulation does not contain any information collection
requirements.
Environmental Impact
This decision will not have a significant impact upon the quality
of the human environment or the conservation of energy resources.
List of Subjects
5 CFR Part 1300
Conflict of interest, Government employees.
5 CFR Part 8701
Conflict of interests, Executive branch standards of conduct,
Government employees.
Dated: February 7, 1995.
Robert G. Damus,
General Counsel, Office of Management and Budget.
Approved: February 13, 1995.
Stephen D. Potts,
Director, Office of Government Ethics.
For the reasons set forth in the preamble, the Office of Management
and Budget, with the concurrence of the Office of Government Ethics, is
amending title 5 of the Code of Federal Regulations as follows:
TITLE 5--[AMENDED]
5 CFR CHAPTER III--OFFICE OF MANAGEMENT AND BUDGET
1. Part 1300 of 5 CFR chapter III is revised to read as follows:
PART 1300--STANDARDS OF CONDUCT
Sec. 1300.1 Cross-reference to employees ethical conduct standards and
financial disclosure regulations.
Employees of the Office of Management and Budget are subject to the
executive branch-wide standards of ethical conduct at 5 CFR part 2635,
OMB's regulations at 5 CFR part 8701 which supplement the executive
branch-wide standards, and the executive branch-wide financial
disclosure regulations at 5 CFR part 2634.
Authority: 5 U.S.C. 7301.
2. A new chapter LXXVII, consisting of part 8701, is added to title
5 of the Code of Federal Regulations to read as follows:
5 CFR CHAPTER LXXVII--OFFICE OF MANAGEMENT AND BUDGET
PART 8701--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES
OF THE OFFICE OF MANAGEMENT AND BUDGET
Section 8701.101 General.
Section 8701.102 Prior approval for outside employment.
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, 2635.803.
Sec. 8701.101 General.
In accordance with 5 CFR 2635.105, the regulations in this part
apply to the employees of the Office of Management and Budget and
supplement the Standards of Ethical Conduct for Employees of the
Executive Branch contained in 5 CFR part 2635. In addition to the
standards in 5 CFR part 2635 and this part, OMB employees are subject
to the executive branch financial disclosure regulations contained in 5
CFR part 2634.
Sec. 8701.102 Prior approval for outside employment.
(a) Before engaging in outside employment with or without
compensation, an employee of the Office of Management and Budget, other
than a special Government employee, must obtain the written approval of
his or her division or office head, the General Counsel, and the
Designated Agency Ethics Official (DAEO). Requests for approval shall
be forwarded through normal supervisory channels to the division or
office head, who shall forward the request to the General Counsel, to
be forwarded with their successive approvals to the DAEO. The request
for approval shall include, at a minimum, the following:
(1) A statement of the name of the person, group, or other
organization for whom the work is to be performed; the type of work to
be performed; and the proposed hours of work and approximate dates of
employment; and
(2) A statement that the outside employment will not depend on
information obtained as a result of the employee's official Government
position and that no official duty time or Government property,
resources, or facilities not available to the general public will be
used in connection with the outside employment.
(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.
(c) For purposes of this section, ``employment'' means any form of
non-Federal employment or business relationship involving the provision
of personal services by the employee. It includes, but is not limited
to, personal services as an officer, director, employee, agent,
attorney, consultant, contractor, general partner, trustee, teacher or
speaker. It includes writing [[Page 12398]] when done under an
arrangement with another person for production or publication of the
written product. It does not, however, include participation in the
activities of a nonprofit charitable, religious, professional, social,
fraternal, educational, recreational, public service, or civic
organization, unless such activities involve the provision of
professional services or advice or are for compensation other than
reimbursement of expenses.
[FR Doc. 95-5553 Filed 3-6-95; 8:45 am]
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