[Federal Register Volume 63, Number 155 (Wednesday, August 12, 1998)]
[Rules and Regulations]
[Pages 43069-43070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21614]
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FEDERAL TRADE COMMISSION
5 CFR Part 5701
RIN 3209-AA15
Supplemental Standards of Ethical Conduct for Employees of the
Federal Trade Commission
AGENCY: Federal Trade Commission (FTC).
ACTION: Final rule.
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SUMMARY: The Federal Trade Commission, with the concurrence of the
Office of Government Ethics (OGE), is issuing a final rule amendment
for employees of the FTC that supplements 5 CFR part 2635, the
Standards of Ethical Conduct for Employees of the Executive Branch
(Standards), issued by OGE. This supplemental regulation provision
narrows for FTC employees restrictions contained in the Standards on
employees' personal fundraising activities. The final rule is effective
upon issuance.
EFFECTIVE DATE: August 12, 1998.
ADDRESSES: Send comments to Ira S. Kaye, Federal Trade Commission, Room
594, 6th and Pennsylvania Ave., NW, Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Ira S. Kaye, (202) 326-2426, Federal Trade Commission, Office of the
General Counsel.
SUPPLEMENTARY INFORMATION:
I. Background
On August 7, 1992, the Office of Governmental Ethics (OGE)
published a final rule entitled ``Standards of Ethical Conduct for
Employees of the Executive Branch'' (Standards). See 57 FR 35006-35067,
as corrected at 57 FR 48557, 57 FR 52583, and 60 FR 51667, and amended
at 61 FR 42965-42970 (as corrected at 61 FR 48733), 61 FR 50689-50691
(interim rule revisions adopted as final at 62 FR 12531), and 62 FR
48746-48748, with additional grace period extensions at 59 FR 4779-
4780, 60 FR 6390-6391, 60 FR 66857-66858, and 61 FR 40950-40952. The
Standards, codified at 5 CFR part 2653 and effective February 3, 1993,
establish uniform standards of ethical conduct applicable to all
executive branch personnel.
The Standards, at 5 CFR 2635.105, authorize executive branch
agencies, with OGE's concurrence, to publish agency-specific
supplemental regulations necessary to implement their respective ethics
programs. On May 27, 1993, the FTC published, with OGE's concurrence,
an interim rule establishing a supplemental standard of conduct, 5 CFR
5701.101, requiring that all FTC employees receive prior approval
before engaging in outside employment (58 FR 30695-30696). The interim
rule prescribed a 45-day comment period and invited comments from all
interested parties. This interim rule is not being finalized at this
time.
The FTC is now issuing a second supplemental regulation because it
has determined that a new provision concerning fundraising activities,
to be codified in a new Sec. 5701.102 of 5 CFR, is currently necessary
to the successful implementation of the Commission's ethics program.
II. Analysis of the Amendment
New Section 5701.102 of the final rule supplements the executive
branch-wide Standards at 5 CFR 2635.808(c) regarding fundraising in a
personal capacity. That standard bars employees from personally
soliciting funds from those persons known by the employee to be
``prohibited sources'' as defined in 5 CFR 2635.203(d), including,
pursuant to 2635.203(d)(3), any person who ``conducts activities
regulated by the employee's agency.'' (``prohibited source'' is also
defined in subparagraphs (d)(1), (d)(2), (d)(4) and (d)(5) of
Sec. 2635.203 to include ``any person who: (1) Is seeking official
action by the employee's agency; (2) Does business or seeks to do
business with the employee's agency; . . . (4) Has interests that may
be substantially affected by performance or nonperformance of the
employee's official duties; or (5) Is an organization a majority of
whose members are described in paragraphs (d) (1) through (4) of this
section.'')
Because the FTC has enforcement authority over unfair methods of
competition in or affecting commerce and unfair or deceptive acts or
practices in or affecting commerce, virtually all businesses are
``prohibited sources'' for FTC employees. The Commission has determined
that given the breadth of this enforcement authority, the fundraising
provision is unnecessarily restrictive for FTC employees. Accordingly,
Sec. 5701.102 provides that it shall be permissible for FTC employees
to solicit funds or other support from a person who is a prohibited
source only by virtue of the definition in 5 CFR 2635.203(d)(3),
because the person is regulated by the FTC (provided that the other
provision of 5 CFR 2635.808(c) continue to apply).
Employees of the FTC, however, will not be allowed to solicit
contributions from a person known to be a ``prohibited source'' for the
other defined reasons listed in 2635.203(d). Thus, an FTC employee may
not engage in charitable fundraising from any person (including an
organization a majority of whose members are such persons) seeking
official action by the FTC, doing business with the FTC or having
interests that may be substantially affected by the performance or
nonperformance of the employee's official duties.
III. Matters of Regulatory Procedure
Administrative Procedure Act
This rule amendment relates solely to agency management and
personnel, and, thus, is not subject to the notice and comment
requirements of the Administrative Procedure Act, 5 U.S.C. 553(a)(2).
[[Page 43070]]
Regulatory Flexibility Act
The Federal Trade Commission has determined under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) that this regulation will not have
a significant economic impact on a substantial number of small entities
because it affects only Federal employees.
Paperwork Reduction Act
The Federal Trade Commission 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
that require the approval of the Office of Management and Budget.
List of Subjects in 5 CFR Part 5701
Conflicts of interests, Government employees.
By direction of the Commission.
Dated: July 28, 1998.
Donald S. Clark,
Secretary, Federal Trade Commission.
Approved: August 4, 1998.
Stephen D. Potts,
Director, Office of Government Ethics.
For the reasons set forth in the preamble, the Federal Trade
Commission, with the concurrence of the Office of Government Ethics,
amends 5 CFR part 5701 as follows:
PART 5701--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES
FOR THE FEDERAL TRADE COMMISSION
1. The authority citation for part 5701 is revised to read as
follows:
Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government
Act of 1978); 15 U.S.C. 46(g); 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, 2635.808(c).
2. A new Sec. 5701.102 is added to read as follows:
Sec. 5701.102 Fundraising activities
When engaging in personal fundraising, as described at 5 CFR
2635.808(c), an employee of the Federal Trade Commission may,
notwithstanding the prohibition of Sec. 2635.808(c)(1)(i), personally
solicit funds from a person who is a prohibited source only under 5 CFR
2635.203(d)(3) (i.e., because the person ``conducts activities
regulated by'' the Commission). The other provisions of
Sec. 2635.808(c) continue to apply to any such personal fundraising.
Example 1: A Federal Trade Commission employee is president of
the local branch of her college alumni association. The association
is seeking contributions from local businesses. The employee may,
during her off-duty hours, seek a contribution from a company that
is regulated by the Commission, but not from one that she knows is
currently under Commission investigation or is seeking official
action by the Commission, does business or seeks to do business with
the Commission, or has interests that may be substantially affected
by the employee's job. While the Standards of Conduct provide that
companies under the agency's enforcement authority generally are
prohibited sources of an employee's fundraising in a personal
capacity, Sec. 5701.102 provides that employees of the FTC may seek
charitable contributions from an entity that is a prohibited source
only because its activities are subject to agency regulation.
[FR Doc. 98-21614 Filed 8-11-98; 8:45 am]
BILLING CODE 6750-01-M
