[Federal Register Volume 59, Number 187 (Wednesday, September 28, 1994)]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23735]
Federal Register / Vol. 59, No. 187 / Wednesday, September 28, 1994 /
[Federal Register: September 28, 1994]
VOL. 59, NO. 187
Wednesday, September 28, 1994
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
5 CFR Chapter LIX
14 CFR Part 1207
RINs 2700-AB44, 2700-AB48, and 3209-AA15
Supplemental Standards of Ethical Conduct for Employees of the
National Aeronautics and Space Administration
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The National Aeronautics and Space Administration, with the
concurrence of the Office of Government Ethics (OGE), is issuing a
regulation for employees of NASA that supplements the executive branch-
wide Standards of Ethical Conduct (Standards) issued by OGE and
codified at 5 CFR part 2635. NASA is also repealing those sections of
its existing standards of conduct regulations that are now superseded
by the new Standards and by the executive branch financial disclosure
regulations at 5 CFR part 2634, also issued by OGE, and is adding a
cross-reference to the current provisions.
EFFECTIVE DATE: These regulations are effective September 28, 1994.
FOR FURTHER INFORMATION CONTACT:
James L. Hoffman, NASA, (202) 358-2465.
SUPPLEMENTARY INFORMATION:
I. Background
On August 7, 1992, the Office of Government Ethics published the
Standards of Ethical Conduct for Employees of the Executive Branch that
are now codified at 5 CFR part 2635. See 57 FR 35006-35067, as
corrected at 57 FR 48557 and 52583, with an additional grace period
extension at 59 FR 4779-4780. The Standards became effective February
3, 1993, and established uniform ethical conduct standards applicable
to all executive branch personnel.
With the concurrence of OGE, 5 CFR 2635.105 authorizes executive
branch agencies to publish agency-specific supplemental regulations
that are necessary to properly implement their respective ethics
programs. NASA, with OGE's concurrence, has determined that the
following supplemental regulations, being codified in new chapter LIX
of 5 CFR, are necessary for successful implementation of NASA's ethics
program, in light of NASA's unique programs and operations.
II. Analysis of the Regulations
Section 6901.101 General
Section 6901.101 explains that the regulations apply to NASA
employees and supplement the Standards at 5 CFR part 2635.
Section 6901.102 Designation of Responsible Officials
Although some sections of NASA's existing rules at 14 CFR part 1207
have been temporarily ``grandfathered'' by the new OGE Standards, and
others were not affected, 14 CFR part 1207 will eventually be totally
superseded by a combination of the new Standards, the new financial
disclosure regulation, the NASA supplemental regulation, NASA internal
directives, and a future OGE regulation on regulatory waivers issued
under 18 U.S.C. 208(b)(2). Therefore, the designation of NASA Agency
Ethics Officials currently at 14 CFR 1207.104 is being modified to
include and identify ``Agency designees'' and is restated at section
6901.102 of the NASA supplemental regulation.
Section 6901.103 Outside Employment
5 CFR 2635.802 and 2635.803, respectively, authorize individual
agencies, by supplemental regulation, to prohibit conflicting outside
employment and to require employees to obtain approval before engaging
in other outside employment or activities. The current NASA rules
prohibiting outside employment with certain entities and requiring
administrative approval for other particular employment activities have
been in effect for many years and have served NASA well in avoiding
violations of the standards of conduct and conflict of interest
statutes and, thus, in ensuring public confidence in the integrity of
NASA personnel and programs. Accordingly, the rules at 14 CFR 1207.300-
1207.306 have been modified form as Sec. 6901.103 of the NASA
supplemental regulation.
As permitted by 5 CFR 2635.802, NASA is issuing Sec. 6901.103(c)
which sets forth prohibitions on non-Government employment that are
substantially similar to those found in 14 CFR 1207.302(f). Prohibited
employment listed in Sec. 6901.103(c) includes employment with a NASA
contractor, subcontractor, or grantee, in connection with work
performed by that entity for NASA, and employment with parties to
certain classes of agreements to which NASA is a party, if the
employment would be in connection with work to be performed under such
an agreement. NASA has determined, in accordance with the standard set
forth in 5 CFR 2635.403(a), that such outside employment by employees,
other than special Government employees, would cause reasonable persons
to question the impartiality and objectivity with which NASA programs
are administered.
As permitted by 5 CFR 2635.803, and based on its finding that the
long-standing requirements for prior approval for certain categories of
outside employment at 14 CFR 1207.306 has helped to ensure that
employees' outside activities conform to applicable statutes and
regulations, NASA has determined to continue to require prior approval
for those outside employment activities that, by their nature, tend to
raise questions under the Standards. Before engaging in specified
categories of outside employment, with or without compensation,
Sec. 6901.103(d) requires a NASA employee, other than a special
Government employee, to obtain written approval from an appropriate
agency official.
``Outside Employment'' is broadly defined at Sec. 6901.103(b)(2) to
cover any form of non-Federal employment or business relationship
involving the provision of personal services, including 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 nonprofit charitable, religious,
professional, social, fraternal, and similar organizations, unless the
organization is a prohibited source as defined in 5 CFR 2635.203(d), or
unless such activities involve the provision of professional services
or advice or are for compensation other than reimbursement for
expenses. Sections 6901.103(f) and (g) set forth the requirements for
submission and processing of a written request for approval.
To ensure that section 6901.103 is not itself construed as
authority to deny permission to engage in any outside employment
activity, Sec. 6901.103(g)(3) states that approval will be granted
unless it is determined that the prospective outside employment is
expected to involve conduct prohibited by statute or Federal
regulations, including 5 CFR part 2635 and this supplemental
regulation.
III. Repeal of NASA Standards of Conduct
Most of NASA's standards of conduct at 14 CFR part 1207 were
superseded by the executive branch-wide financial disclosure
regulations at 5 CFR part 2634 and by the ethical conduct standards at
5 CFR part 2635. NASA is, therefore, repealing those portions of its
existing standards of conduct regulation at 14 CFR part 1207 which were
superseded by 5 CFR parts 2634 and 2635 or which will be superseded on
the date of the current rulemaking by this NASA supplemental
regulation. In the place of the superseded regulations, NASA is
substituting cross-references to the new executive branch-wide
regulations on ethical conduct and financial disclosure, the Office of
Personnel Management provisions on employee responsibilities and
conduct at 5 CFR part 735, and the NASA supplemental regulation.
Consistent with 5 CFR 2635.402(d)(1), existing Sec. 1207.403 of 14 CFR
is being preserved and redesignated as Sec. 1207.102, pending issuance
by OGE of superseding regulatory waivers. Similarly, existing sections
1207.800 and 1207.801 of 14 CFR, which provide guidance to former NASA
employees who desire to communicate with NASA to provide scientific or
technical information in accordance with 18 U.S.C. 207(j)(5), have no
counterpart in the new Standards and are being retained and
redesignated, with a couple of modifications to reflect the current
post-Government employment law, as Secs. 1207.201 and 1207.202 of 14
CFR.
IV. Matters of Regulatory Procedure
Administrative Procedure Act
As Administrator of NASA, I have 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 similar to rules previously
contained in NASA's standards of conduct, and I believe that it is
important to a smooth transition from NASA's prior ethics rules to the
new executive branch-wide Standards and financial disclosure
regulations that these rulemaking actions take place as soon as
possible. Furthermore, this rulemaking is related to NASA's
organization, procedures, and practices.
Executive Order 12866
In promulgating this final rule, NASA has adhered to the regulatory
philosophy and the applicable principles of regulation set forth in
Executive Order 12866, Regulatory Planning and Review. This regulation
has been reviewed by the Office of Management and Budget under that
Executive order.
Regulatory Flexibility Act
As Administrator of NASA, I have 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
NASA employees.
Paperwork Reduction Act
As Administrator of NASA, I have 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
5 CFR Part 6901
Conflict of interests, Executive branch standards of conduct,
Government employees.
14 CFR Part 1207
Conflict of interests, Executive branch standards of conduct,
Government employees.
Dated: September 16, 1994.
Daniel S. Goldin,
Administrator, National Aeronautics and Space Administration.
Approved: September 20, 1994.
Stephen D. Potts,
Director, Office of Government Ethics.
For the reasons set forth in the preamble, the National Aeronautics
and Space Administration, with the concurrence of the Office of
Government Ethics, is amending title 5 of the Code of Federal
Regulations and title 14, chapter V, of the Code of Federal
Regulations, as follows:
TITLE 5--[AMENDED]
1. A new chapter LIX, consisting of part 6901, is added to title 5
of the Code of Federal Regulations to read as follows:
5 CFR CHAPTER LIX--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
PART 6901--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES
OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
Sec.
6901.101 General.
6901.102 Designation of responsible officials.
6901.103 Outside employment.
Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government
Act of 1978); 42 U.S.C. 203(c)(1); 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, 2635.403(a), 2635.802(a),
2635.803.
Sec. 6901.101 General.
In accordance with 5 CFR 2635.105, the regulations in this part
apply to employees of the National Aeronautics and Space Administration
(NASA) 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, employees are subject to
the executive branch financial disclosure regulations contained in 5
CFR part 2634, and to additional regulations regarding their conduct
contained in 5 CFR part 735 and 14 CFR part 1207.
Sec. 6901.102 Designation of responsible officials.
(a) Designated Agency Ethics Official. The General Counsel of NASA
is the Designated Agency Ethics Official (DAEO) and as such has the
responsibilities, authorities, and duties set forth in 5 CFR 2638.203.
(b) Alternate Designated Agency Ethics Official. The Associate
General Counsel (General) shall serve as the Alternate Designated
Agency Ethics Official in accordance with 5 CFR 2638.202(b).
(c) Deputy Ethics Officials. (1) The following officials are
designated as NASA Deputy Ethics Officials pursuant to 5 CFR
2638.202(b)(7):
(i) Deputy General Counsel;
(ii) Associate General Counsel (General);
(iii) Senior Ethics Attorney assigned to the Associate General
Counsel (General); and
(iv) Chief Counsel at each NASA Field or Component Installation.
(2) Deputy Ethics Officials may carry out responsibilities
delegated to them through designated subordinates, but shall retain
ultimate responsibility for the ethics functions assigned to them.
(d) Agency Designee. As used in 5 CFR part 2635, the term ``Agency
Designee'' at NASA refers to the following:
(1) For employees at NASA Headquarters, the DAEO, the Alternate
DAEO, or the Associate Administrator for Human Resources and Education;
and
(2) For employees at Field or Component Installations, the Director
of the Installation, who may delegate specific responsibilities of the
Agency Designee to the Installation's Chief Counsel or to another
official who reports directly to the Director.
Sec. 6901.103 Outside employment.
(a) General. A NASA employee shall not engage in outside employment
prohibited by paragraph (c) of this section and shall obtain approval
before engaging in the outside employment activities specified in
paragraph (d) of this section.
(b) Definitions. For purposes of this section:
(1) Key official means an officer or employee, other than a special
Government employee, who is required, in accordance with 5 CFR part
2634, to file a public financial disclosure report or who holds a
position as astronaut, astronaut candidate, procurement officer, or
chief counsel.
(2) Outside employment means any form of compensated or
uncompensated 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 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 the organization is a prohibited source or unless such
activities involve the provision of professional services or advice, or
are for compensation other than reimbursement of expenses.
(3) Profession has the meaning set forth in 5 CFR 2636.305(b)(1).
(4) Prohibited source has the meaning set forth in 5 CFR
2635.203(d).
(c) Prohibited outside employment. A NASA employee, other than a
special Government employee, shall not engage in outside employment
with the following:
(1) A NASA contractor, subcontractor, or grantee in connection with
work performed by that entity for NASA; or
(2) A party to a Space Act agreement, Commercial Launch Act
agreement, or other agreement to which NASA is a party pursuant to
specific statutory authority, if the employment is in connection with
work performed under that agreement.
(d) Prior approval for outside employment. A NASA employee, other
than a special Government employee, shall request and obtain
administrative approval before engaging in the following outside
employment activities:
(1) Teaching, speaking, writing, or editing, unless the subject
matter pertains to the private interests of the employee, such as a
hobby, cultural activity, or nonwork related professional pursuit;
(2) The practice of a profession or the rendering of professional
consulting services;
(3) The management or conduct of a business in which the employee
or the employee's spouse has an ownership interest;
(4) Holding a State or local public office, whether by election or
appointment;
(5) Employment with a NASA contractor, subcontractor, or grantee;
(6) Employment with a party to a Space Act agreement, Commercial
Launch Act agreement, or other agreement to which NASA is a party
pursuant to specific statutory authority;
(7) Serving as an officer, trustee, or member of a board,
directorate, or other such body of a for profit organization or of a
nonprofit organization that is a prohibited source; or
(8) Employment which involves the practice of a NASA-owned
invention.
(e) Prior approval requested by employee. Even when not required by
paragraph (d) of this section, a NASA employee who is in doubt as to
the propriety of outside employment or another outside activity may
request prior approval using the procedures set forth in this section.
(f) Form of request for approval. (1) A request for administrative
approval of outside employment shall be in writing and shall include
the following:
(i) The employee's name and occupational title;
(ii) The nature of the employment, including a full description of
the specific duties or services to be performed;
(iii) The name and address of the person or organization for which
work will be done;
(iv) The estimated total time that will be devoted to the activity.
If the employment is on a continuing basis, indicate the estimated
number of hours per year; for other employment, indicate the
anticipated beginning and ending date;
(v) A statement as to whether the work can be performed entirely
outside of the employee's regular duty hours and, if not, the estimated
number of hours of absence from work that will be required;
(vi) The amount of compensation, if any, to be received; and
(vii) A statement that the employee currently has no official
duties involving a matter that affects the outside employer and will
disqualify from future participation in matters that could directly
affect the outside employer.
(2) Locally prepared forms providing for collection of the
information required by paragraph (f)(1) of this section may be used
for submission of the request and subsequent approval or disapproval.
(g) Approval of requests--(1) Key Officials. The Headquarters
Associate Administrator for Human Resources and Education has authority
to approve requests for approval of outside employment submitted by
NASA Key Officials. Prior to approval or disapproval, Key Official
requests shall be submitted to the appropriate Official-in-charge of
the Headquarters Office or to the Director of the appropriate Field or
Component Installation, who shall add a recommendation and forward the
request through the General Counsel to the Associate Administrator.
(2) Employees other than Key Officials. The appropriate Official-
in-Charge of a Headquarters Office, or the Director of a Field or
Component Installation, or a person designated to act for the Director,
has authority to approve requests for approval of outside employment
submitted by employees other than NASA Key Officials. Prior to approval
or disapproval:
(i) Requests by NASA Headquarters personnel shall be submitted to
and reviewed by the employee's supervisor and by the Office of the
Associate General Counsel (General); and
(ii) Requests by Field or Component Installation personnel shall be
submitted to and reviewed by the employee's supervisor and by a Deputy
Ethics Official or designee.
(3) Standard for approval. Approval will be granted unless a
determination is made that the prospective outside employment is
expected to involve conduct prohibited by statute or Federal
regulation, including 5 CFR part 2635 and this part.
(4) Scope of approval. Approval will be for a period not to exceed
3 years. Upon a significant change in the nature or scope of the
outside employment or in the employee's NASA position, the employee
shall submit a revised request for approval.
(5) Notification of approval or disapproval. Employees will be
notified in writing of the action taken on their requests.
(6) Records of requests. All requests for approval will be
maintained in the local Human Resources/Personnel Office for the
duration of the requester's NASA employment.
14 CFR CHAPTER V--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
PART 1207--STANDARDS OF CONDUCT
2. The authority citation for part 1207 is revised to read as
follows:
Authority: 5 U.S.C. 7301; 42 U.S.C. 203(c)(1).
3. Subpart A of part 1207 is amended by removing Secs. 1207.100 and
1207.102 through 1207.104, redesignating Sec. 1207.403 as Sec. 1207.102
and revising Sec. 1207.101 to read as follows:
Sec. 1207.101 Cross-references to ethical conduct, financial
disclosure, and other applicable regulations.
Employees of the National Aeronautics and Space Administration
(NASA) should refer to the executive branch-wide Standards of Ethnical
Conduct at 5 CFR part 2635, the NASA regulation at 5 CFR part 6901
which supplements the executive branch-wide standards with respect to
prohibitions and prior approval requirements applicable to certain
outside employment activities, the Office of Personnel Management
provisions on employee responsibilities and conduct at 5 CFR part 735,
and the executive branch-wide financial disclosure regulation at 5 CFR
part 2634.
4. In part 1207, subpart B, consisting of Secs. 1207.200 through
1207.203; subpart C, consisting of Secs. 1207.300 through 1207.306;
subparts E and F; and subpart G, consisting of Secs. 1207.700 through
1207.704, are removed.
5. In part 1207, subpart D, consisting of Secs. 1207.400 through
1207.402, 1207.404, and 1207.405, is removed.
6. In part 1207, subpart H, consisting of Secs. 1207.800 and
1207.801 is redesignated as subpart B, consisting of Secs. 1207.201 and
1207.202 respectively, and paragraph (a) of newly designated
Sec. 1207.202 is amended by revising the reference in the introductory
text to ``section 207(f)'' to read ``section 207(j)(5)'', and by
revising the citation in paragraph (a)(1) to ``18 U.S.C. 207(a), (b),
or (c)'' to read ``18 U.S.C. 207(a), (c), or (d)''.
[FR Doc. 94-23735 Filed 9-27-94; 8:45 am]
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