[Federal Register Volume 61, Number 88 (Monday, May 6, 1996)]
[Rules and Regulations]
[Pages 20117-20119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10940]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
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Federal Register / Vol. 61, No. 88 / Monday, May 6, 1996 / Rules and
Regulations
[[Page 20117]]
TENNESSEE VALLEY AUTHORITY
5 CFR Chapter LXIX
18 CFR Part 1300
Supplemental Standards of Ethical Conduct for Employees of the
Tennessee Valley Authority
AGENCY: Tennessee Valley Authority (TVA).
ACTION: Final rule.
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SUMMARY: The Tennessee Valley Authority, with the concurrence of the
Office of Government Ethics (OGE), is issuing regulations for employees
of TVA that supplement the Standards of Ethical Conduct for Employees
of the Executive Branch (Standards) issued by OGE by adding a
requirement to obtain prior approval for outside employment. By this
final rule, TVA also is repealing those sections of its existing
conduct standards that are superseded by the new Standards as
supplemented by this final rule and by the executive branch financial
disclosure regulations inserting in their place a cross-reference to
the new 5 CFR provisions, and reissuing those provisions in the TVA
conduct standards which have not been superseded.
EFFECTIVE DATE: May 6, 1996.
FOR FURTHER INFORMATION CONTACT:
William L. Osteen, Designated Agency Ethics Official, 423-632-4142, FAX
423-632-2422.
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.
Codified at 5 CFR part 2635, the new standards became effective on
February 3, 1993.
With the concurrence of OGE, 5 CFR 2635.105 authorizes executive
branch agencies to publish agency-specific supplemental regulations
that are necessary to implement their respective ethics programs. TVA,
with OGE's concurrence, has determined that the following supplemental
rules, being codified in new chapter LXIX of 5 CFR, are necessary to
the success of its ethics program. Simultaneously, TVA is repealing
superseded provisions of 18 CFR part 1300, replacing those provisions
with a section that provides cross-references to 5 CFR parts 2634 and
2635 and to TVA's new supplemental regulations, and reissuing existing
provisions of 18 CFR part 1300 which have not been superseded.
II. Analysis of the Regulations
Section 7901.101 General
Section 7901.101 explains that these regulations supplement the
executive branch-wide Standards and reminds TVA employees that they are
subject to the Standards and to the executive branch-wide financial
disclosure regulations, in addition to these regulations.
Section 7901.102 Prior Approval for Outside Employment
Where it is determined to be necessary or desirable for the purpose
of administering its ethics program, 5 CFR 2635.803 authorizes an
individual agency to issue supplemental regulations requiring agency
employees to obtain prior approval before engaging in outside
employment. TVA has for many years had a prior approval requirement,
expressed partly in TVA conduct standards at 18 CFR 1300.735-13(b) and
partly in uncodified instructions. Based on its findings that this
requirement has helped ensure that employees' outside employment
conforms to applicable statutes and regulations, TVA has determined
that continuing this requirement is necessary for the purpose of its
ethics program. Paragraph (a) clarifies that the outside employment,
except for Special Government Employees, must be approved by the
employee's supervising TVA vice president or designee. The employee is
required to request approval in writing, describing the organizations,
duties, hours of work, and remuneration pertaining to the outside
employment. Paragraph (b) clarifies the standard for review and
approval. To ensure that Sec. 7901.102 is not in itself construed as
authority to totally prohibit outside employment, Sec. 7901.102(b)
states that approval will be granted only upon a determination that the
prospective outside employment is not expected to involve conduct
prohibited by statute or Federal regulations, including 5 CFR part
2635. Paragraph (c) is intended to foster efficient administration by
allowing exclusion from the approval requirement for classes of
employees as to which outside employment is unlikely to raise issues of
compliance with 5 CFR part 2635. Paragraph (d) adds a definition of
employment for purposes of applying the requirement for prior approval
set forth in paragraph (a) of the section.
III. Repeal of Superseded TVA Standards of Conduct Regulations
The Tennessee Valley Authority is repealing those sections of its
standards of conduct regulations at 18 CFR part 1300 which have been
superseded by the OGE regulations at 5 CFR parts 2634 or 2635 or by the
TVA's supplemental regulations at new 5 CFR 7901 made effective by this
final rule. To ensure that employees are on notice of the ethical
standards to which they are subject, TVA is replacing the superseded
standards at 18 CFR part 1300 with a provision that cross-references 5
CFR parts 2634, 2635, and 7901. To accommodate the removal of
superseded provisions. TVA is renumbering and reissuing existing
sections of 18 CFR part 1300 dealing with gambling, harassment, and
conduct prejudicial to the Government which have not been superseded.
The Office of Government Ethics (OGE) concurs in the reissuance of
these regulations only insofar as it has determined that the substance
of new 18 CFR 1300.102-1300.107 need not be issued as part of TVA's
supplemental regulations at 5 CFR part 7901. Pursuant to 5 CFR
2635.402(d), TVA is also renumbering and reissuing, with a revised
heading, its regulatory waivers at 18 CFR 1300.734-14(c) which were
issued under the authority of 18 U.S.C. 208(b)(2); it is anticipated
that these waivers will be superseded in the future by new OGE
regulations. See 60 FR
[[Page 20118]]
44706-44709 (August 28, 1995) and 60 FR 47208-47233 (September 11,
1995).
IV. Matters of Regulatory Procedure
Administrative Procedure Act
TVA 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 these rules and repeals. The supplemental
regulations are essentially a restatement of rules previously contained
in the standards of conduct, and TVA believes that it is important to a
smooth transition from TVA standards of conduct to the Executive branch
standards that these rules become effective as soon as possible.
Furthermore, this rulemaking is related to TVA organization, procedure,
and practice.
Regulatory Flexibility Act
TVA has determined under the Regulatory Flexibility Act (5 U.S.C.
chapter 6) that these regulations will not have a significant impact on
small business entities because they affect only TVA employees.
Paperwork Reduction Act
TVA has determined that the Paperwork Reduction Act (44 U.S.C.
chapter 35) does not apply because these regulations do not contain any
information collection requirements that require the approval of the
Office of Management and Budget.
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 7901
Conflict of interests, Government employees.
18 CFR Part 1300
Government employees.
Dated: April 5, 1996.
William L. Osteen,
Associate General Counsel and Designated Agency Ethics Official,
Tennessee Valley Authority.
Approved: April 12, 1996.
Stephen D. Potts,
Director, Office of Government Ethics.
For the reasons set forth in the preamble, the Tennessee Valley
Authority, with the concurrence of the Office of Government Ethics, is
amending title 5 of the Code of Federal Regulations and title 18,
chapter XIII of the Code of Federal Regulations as follows:
TITLE 5--[AMENDED]
1. A new chapter LXIX, consisting of part 7901, is added to title 5
of the Code of Federal Regulations to read as follows:
CHAPTER LXIX--TENNESSEE VALLEY AUTHORITY
PART 7901--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES
OF THE TENNESSEE VALLEY AUTHORITY
Sec.
7901.101 General.
7901.102 Prior approval for outside employment.
Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 16
U.S.C. 831-831dd; 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. 7901.101 General.
In accordance with 5 CFR 2635.105, the regulations in this part
apply to employees of the Tennessee Valley Authority (TVA) and
supplement the Standards of Ethical Conduct for Employees of the
Executive Branch contained in 5 CFR part 2635. In addition, some TVA
employees are subject to the executive branch financial disclosure
regulations at 5 CFR part 2634.
Sec. 7901.102 Prior approval for outside employment.
(a) Before engaging in outside employment, with or without
compensation, an employee, other than a special Government employee,
must obtain written approval from the supervising TVA vice president or
designee. The written request shall be submitted through the employee's
supervisor or human resource office and shall, at a minimum, identify
the employer or other person for whom the services are to be provided,
as well as the duties, hours of work, and compensation involved in the
proposed outside employment.
(b) Approval under paragraph (a) of this section 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) Vice presidents or other officers of TVA may, after
consultation with the Designated Agency Ethics Official, exempt
specified classes of employees from this section based upon a
determination that the official duties of employees in the class are
such that their outside employment activities are not likely to raise
issues of compliance with 5 CFR part 2635.
(d) For purposes of this section, employment means any form of non-
Federal employment or business relationship involving the provision of
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 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 for actual expenses.
18 CFR CHAPTER XIII--TENNESSEE VALLEY AUTHORITY
2. Part 1300 is revised to read as follows:
PART 1300--STANDARDS OF CONDUCT FOR EMPLOYEES OF TENNESSEE VALLEY
AUTHORITY
Sec.
1300.101 Cross reference to employee ethical conduct standards and
other applicable regulations.
1300.102 Gambling, betting, and lotteries.
1300.103 General conduct prejudicial to TVA.
1300.104 Sexual harassment.
1300.105 National origin harassment.
1300.106 Harassment on the basis of race, color, religion, age, or
disability.
1300.107 Financial interest exemptions.
Authority: 16 U.S.C. 831-831dd; 18 U.S.C. 208(b)(2).
Sec. 1300.101 Cross references to employee ethical conduct standards
and other applicable regulations.
Employees of the Tennessee Valley Authority (TVA) are subject to
the executive branch-wide standards of ethical conduct at 5 CFR part
2635 and to the TVA regulations at 5 CFR part 7901 which supplement the
executive branch-wide standards. In addition, certain TVA employees are
subject to executive branch-wide financial disclosure regulations at 5
CFR part 2634.
Sec. 1300.102 Gambling, betting, and lotteries.
An employee shall not participate, while on Government- or TVA-
owned or leased property or while on TVA duty, in any gambling activity
including the operation of a gambling device, in
[[Page 20119]]
conducting a lottery or pool, in a game for money or property, or in
selling or purchasing a numbers slip or ticket. However, this section
does not preclude activities:
(a) Necessitated by an employee's law enforcement duties; or
(b) Under section 7 of Executive Order 12353 (47 FR 12785, 3 CFR,
1982 Comp., p. 139) and similar TVA-approved activities.
Sec. 1300.103 General conduct prejudicial to TVA.
An employee shall not engage in criminal, infamous, dishonest,
immoral, or notoriously disgraceful conduct, or other conduct
prejudicial to TVA.
Sec. 1300.104 Sexual harassment.
It is TVA policy that all TVA employees are responsible for
assuring that the workplace is free from sexual harassment.
Accordingly, all employees must avoid any action or conduct which could
be viewed as sexual harassment including:
(a) Unwelcome sexual advances;
(b) Requests for sexual favors; and
(c) Other verbal or physical conduct of a sexual nature when:
(1) Submission to such conduct is made either explicitly or
implicitly a term or condition of an individual's employment;
(2) Submission to or rejection of such conduct by an individual is
used as the basis for employment decisions affecting such individual;
or
(3) Such conduct has the purpose or effect of unreasonably
interfering with an individual's work performance or creating an
intimidating, hostile, or offensive working environment.
Sec. 1300.105 National origin harassment.
It is TVA policy that all TVA employees are responsible for
assuring that the workplace is free from national origin harassment.
Accordingly, all employees must avoid any action or conduct which could
be viewed as national origin harassment, including ethnic slurs and
other verbal or physical conduct relating to an individual's national
origin when such conduct:
(a) Has the purpose or effect of creating an intimidating, hostile,
or offensive working environment;
(b) Has the purpose or effect of unreasonably interfering with an
individual's work performance; or
(c) Otherwise adversely affects an individual's employment
opportunities.
Sec. 1300.106 Harassment on the basis of race, color, religion, age,
or disability.
It is TVA policy that all TVA employees are responsible for
assuring that the workplace is free from harassment on the basis of
race, color, religion, age, or disability. Accordingly, all employees
must avoid any action or conduct which could be viewed as harassment on
these bases, including any verbal or physical conduct relating to an
individual's race, color, religion, age, or disability when such
conduct:
(a) Has the purpose or effect of creating an intimidating, hostile,
or offensive working environment;
(b) Has the purpose or effect of unreasonably interfering with an
individual's work performance; or
(c) Otherwise adversely affects an individual's employment
opportunities.
Sec. 1300.107 Financial interest exemptions.
In accordance with the provisions of 18 U.S.C. 208(b)(2), TVA has
exempted the following financial interests of its employees from the
requirements of 18 U.S.C. 208(a) upon the ground that such interests
are too remote or too inconsequential to affect the integrity of such
employees' services. When any of the following exemptions applies only
to a limited range of official actions, rather than all official acts,
the range of actions will be specified within the language of the
exemption.
(a) An investment in a business enterprise in the form of ownership
of bonds, notes, and other evidences of indebtness which are not
convertible into shares of preferred or common stock and have no
warrants attached entitling the holder to purchase stock provided that
the estimated market value of the interest does not exceed $5,000;
(b) An investment in the form of shares in the ownership of
enterprises, including preferred and common stocks whether voting or
nonvoting, or warrants to purchase such shares, or evidences of
indebtedness convertible into such shares provided that the estimated
market value of the interest does not exceed $5,000 and does not exceed
1 percent of the estimated market value of all the outstanding shares
of the enterprise;
(c) Shares or investments in a well-diversified money market or
mutual fund;
(d) Vested interests in a pension fund arising out of former
employment and to which no further contributions are being made in the
employee's behalf, provided that, if the pension plan is a defined
benefit plan, the assets of the plan are diversified. For the purpose
of this provision, payments are not considered to be made ``in the
employee's behalf'' if they are made solely to maintain adequate plan
funding rather than to provide specific benefits for the employee; or
(e) The interest an employee has by virtue of his or her personal
or family use of electric power or through his or her interests in an
organization using electric power generated or distributed by TVA, for
purposes of his or her official actions at TVA in the process of
developing or approving TVA power rate schedules.
[FR Doc. 96-10940 Filed 5-3-96; 8:45 am]
BILLING CODE 8120-01-M
