[Federal Register Volume 63, Number 106 (Wednesday, June 3, 1998)]
[Rules and Regulations]
[Pages 30109-30111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14714]
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DEPARTMENT OF ENERGY
10 CFR Part 1010
RIN 1990-AA19
Conduct of Employees
AGENCY: Department of Energy (DOE).
ACTION: Final rule.
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SUMMARY: The Department of Energy (DOE) is amending its regulations on
conduct of employees to remove an exemption from application of the
financial conflict of interest prohibition. The removal of this
exemption is in response to publication by the Office of Government
Ethics (OGE) of a superseding, executive branch-wide regulation that
describes the
[[Page 30110]]
circumstances under which certain financial interests are exempt from
the general prohibitions concerning acts affecting a personal financial
interest. In addition, DOE is adding a reference to OGE's executive
branch-wide regulation in its cross-references provision.
EFFECTIVE DATE: June 3, 1998.
FOR FURTHER INFORMATION CONTACT: Susan Beard (Deputy Assistant General
Counsel for Standards of Conduct), Office of the Assistant General
Counsel for General Law, GC-80, U.S. Department of Energy, 1000
Independence Avenue, S.W., Washington, D.C. 20585 (202/586-1522).
SUPPLEMENTARY INFORMATION:
I. Background
DOE has had a longstanding regulation, codified at 10 CFR 1010.105,
establishing that an employee's financial interest arising from the
ownership of stock in a widely diversified mutual fund or other
regulated investment company that in turn owns stock in, or bonds of,
another enterprise, is exempt from the prohibition contained in 18
U.S.C. 208 (Acts Affecting a Personal Financial Interest). Section
208(a) prohibits employees of the executive branch from participating
in an official capacity in particular matters in which they, or certain
persons or entities with whom they have specified relationships, have a
financial interest.
On December 18, 1996, (61 FR 66830, as corrected at 62 FR 1361
(January 9, 1997) and 62 FR 23127 (April 29, 1997)), OGE published a
final executive branch-wide rule entitled ``Interpretation, Exemptions
and Waiver Guidance Concerning 18 U.S.C. 208 (Acts Affecting a Personal
Financial Interest),'' which superseded DOE's waiver rule. OGE's new
rule, codified at 5 CFR part 2640 and made effective January 17, 1997,
describes, in subpart B, certain financial interests that the Director
of OGE has determined, pursuant to 18 U.S.C. 208(b)(2), to be exempt
from the general participation prohibition because they are too remote
or too inconsequential to affect the integrity of the services of the
employee to which the prohibition applies. At 5 CFR 2640.201(a), there
is an exemption for diversified mutual funds and unit investment
trusts, thereby superseding DOE's old waiver rule effective January 17,
1997 (see 5 CFR 2640.206 of OGE's regulation). Therefore, DOE is
publishing this final rule removing 10 CFR 1010.105 in its entirety.
DOE is also amending its cross-reference provision at 10 CFR 1010.102
to add a reference to OGE's executive branch-wide financial interests
regulation.
II. Matters of Regulatory Procedure
Because DOE is required to delete the superseded provisions of 10
CFR part 1010 relating to 18 U.S.C. 208(b)(2) exemptions, with no
discretion in the matter, DOE finds, pursuant to 5 U.S.C. 553(b)(3)(B),
that there is good cause not to seek public comment on this rule, as
such comment is unnecessary. Furthermore, consistent with 5 U.S.C.
553(d), DOE is making this interpretive rule effective upon publication
in the Federal Register.
III. Review Under Executive Order 12866
DOE has determined that the removal of 10 CFR 1010.105 is not
considered to be a ``significant regulatory action'' under Executive
Order 12866, and, therefore, is not subject to review by the Office of
Management and Budget.
IV. Review Under Paperwork Reduction Act
This final rule contains no information collection requirements as
defined in 44 U.S.C. 3502(2), and, therefore, is not subject to the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.).
V. Federalism
The Department has analyzed this rulemaking in accordance with the
principles and criteria contained in Executive Order 12612 and has
determined that there are no federalism implications that would warrant
the preparation of a Federalism Assessment.
VI. National Environmental Policy Act
The regulations being amended have no current environmental effect
and this rulemaking will not change that status quo. The Department has
therefore determined that this rule is covered under the Categorical
Exclusion found at paragraph A.5 of Appendix A to subpart D, 10 CFR
part 1021, which applies to a rulemaking amending an existing
regulation that does not change the environmental effect of the
regulation being amended. Accordingly, neither an environmental
assessment nor an environmental impact statement is required.
VII. Review Under the Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 requires each
agency to assess the effects of Federal regulatory action on State,
local, and tribal governments and the private sector. Section 201
excepts agencies from assessing effects on State, local, or tribal
governments or the private sector of rules that incorporate
requirements specifically set forth in law. The Department has
determined that today's regulatory action does not impose a Federal
mandate on State, local, or tribal governments or on the private
sector.
VIII. Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., directs
agencies to prepare a regulatory flexibility analysis whenever an
agency is required to publish a general notice of proposed rulemaking
for a rule. As discussed above, the Department has determined that
prior notice and opportunity for public comment is unnecessary and
contrary to the public interest. In accordance with 5 U.S.C. 604(a), no
regulatory flexibility analysis has been prepared for today's rule.
IX. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3 of Executive Order 12988,
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on
Executive agencies the general duty to eliminate drafting errors and
ambiguity; write regulations to minimize litigation; provide a clear
legal standard for affected conduct rather than a general standard; and
promote simplification and burden reduction. Section 3(c) of Executive
Order 12988 requires Executive agencies to review regulations in light
of applicable standards in section 3(a) and section 3(b) to determine
whether they are met. DOE has completed the required review and
determined that, to the extent permitted by law, this final rule meets
the relevant standards of Executive Order 12988.
X. Small Business Regulatory Enforcement Fairness Act
In accordance with section 801 of the Small Business Regulatory
Enforcement Act of 1996, 5 U.S.C. 801, DOE will report to Congress the
promulgation of this rule prior to its effective date. This rule is not
a ``major rule'' as defined by 5 U.S.C. 804(a).
List of Subjects in 10 CFR Part 1010
Conduct standards, Conflicts of interest, Ethical conduct,
Government employees.
[[Page 30111]]
Issued in Washington, D.C. on May 22, 1998.
Eric J. Fygi,
Acting General Counsel, Department of Energy.
For the reasons set out in the preamble, 10 CFR part 1010 is
amended as follows:
PART 1010--CONDUCT OF EMPLOYEES
1. The authority citation for part 1010 is revised to read as
follows:
Authority: 5 U.S.C. 301, 303, 7301; 5 U.S.C. App. (Inspector
General Act of 1978); 18 U.S.C. 208; 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.
Sec. 1010.102 [Amended]
2. Section 1010.102 is amended by revising the heading to read,
``Cross-references to employee ethical conduct standards, financial
disclosure regulations, and other conduct rules.'' and by adding
immediately after ``5 CFR part 2634,'' the words ``the executive
branch-wide financial interests regulations at 5 CFR part 2640,''
before the word ``and.''
Sec. 1010.105 [Removed]
3. Section 1010.105, Conflict of interest waiver, is removed.
[FR Doc. 98-14714 Filed 6-2-98; 8:45 am]
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