81_FR_61271 81 FR 61099 - Interpretation, Exemptions and Waiver Guidance Concerning the Federal Criminal Conflict of Interest Statute Prohibiting Acts Affecting a Personal Financial Interest; Amendment to Definition of “Employee”

81 FR 61099 - Interpretation, Exemptions and Waiver Guidance Concerning the Federal Criminal Conflict of Interest Statute Prohibiting Acts Affecting a Personal Financial Interest; Amendment to Definition of “Employee”

OFFICE OF GOVERNMENT ETHICS

Federal Register Volume 81, Issue 172 (September 6, 2016)

Page Range61099-61100
FR Document2016-21293

The U.S. Office of Government Ethics is issuing this interim final rule to make a technical modification to the definition of ``employee'' in its regulations implementing the federal criminal conflict of interest statute concerning acts affecting a personal financial interest, in order to ensure their continued applicability to all individuals subject to requirements of the statute.

Federal Register, Volume 81 Issue 172 (Tuesday, September 6, 2016) 
[Federal Register Volume 81, Number 172 (Tuesday, September 6, 2016)]
[Rules and Regulations]
[Pages 61099-61100]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21293]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

========================================================================


Federal Register / Vol. 81, No. 172 / Tuesday, September 6, 2016 / 
Rules and Regulations

[[Page 61099]]



OFFICE OF GOVERNMENT ETHICS

5 CFR Part 2640

RIN 3209-AA09


Interpretation, Exemptions and Waiver Guidance Concerning the 
Federal Criminal Conflict of Interest Statute Prohibiting Acts 
Affecting a Personal Financial Interest; Amendment to Definition of 
``Employee''

AGENCY: Office of Government Ethics (OGE).

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Office of Government Ethics is issuing this interim 
final rule to make a technical modification to the definition of 
``employee'' in its regulations implementing the federal criminal 
conflict of interest statute concerning acts affecting a personal 
financial interest, in order to ensure their continued applicability to 
all individuals subject to requirements of the statute.

DATES: This interim regulation is effective September 6, 2016. Comments 
are invited and are due in writing by November 7, 2016.

ADDRESSES: You may submit comments, in writing, to OGE on this interim 
final rule, identified by RIN 3209-AA09, by any of the following 
methods:
    E-Mail: [email protected]. Include the reference ``Interpretation, 
Exemptions and Waiver Guidance Concerning 18 U.S.C. 208 (Acts Affecting 
A Personal Financial Interest); Amendment to Definition of `Employee' 
'' in the subject line of the message.
    Fax: (202) 482-9237.
    Mail/Hand Delivery/Courier: Office of Government Ethics, Suite 500, 
1201 New York Avenue NW., Washington, DC 20005-3917, Attention: 
``Interpretation, Exemptions and Waiver Guidance Concerning 18 U.S.C. 
208 (Acts Affecting A Personal Financial Interest); Amendment to 
Definition of `Employee.' ''
    Instructions: All submissions must include OGE's agency name and 
the Regulation Identifier Number (RIN), 3209-AA09, for this rulemaking. 
All comments, including attachments and other supporting materials, 
will become part of the public record and be subject to public 
disclosure. Comments may be posted on OGE's Web site, www.oge.gov. 
Sensitive personal information, such as account numbers or Social 
Security numbers, should not be included. Comments generally will not 
be edited to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Christopher J. Swartz, Assistant 
Counsel, Office of Government Ethics, Suite 500, 1201 New York Avenue 
NW., Washington, DC 20005-3917; Telephone: 202-482-9300; TTY: 800-877-
8339; Fax: 202-482-9237.

SUPPLEMENTARY INFORMATION:

I. Background

    The U.S. Office of Government Ethics (OGE) is issuing this interim 
final rule making a technical modification to the definition of 
``employee'' in its regulations implementing 18 U.S.C. 208. Section 
208(a) prohibits participation in particular matters affecting a 
covered individual's personal and imputed financial interests. Section 
208(b)(2) authorizes OGE to promulgate regulatory exemptions describing 
financial interests that are ``too remote or too inconsequential'' to 
warrant disqualification pursuant to section 208(a). Pursuant to 5 
U.S.C. app. 402(b)(1) and Executive Order 12674 of April 12, 1989 (as 
modified by Executive Order 12731), OGE is responsible for providing 
uniform regulations interpreting section 208. In addition, section 
208(d)(2) specifically directs OGE to adopt ``uniform regulations for . 
. . exemptions'' from the applicability of section 208(a). Consistent 
with these authorities, in 1996 OGE issued uniform regulations at 5 CFR 
part 2640 interpreting 18 U.S.C. 208 and establishing exemptions for 
all individuals subject to section 208(a). 61 FR 66830 (Dec. 18, 1996).
    OGE established this uniform coverage by defining ``employee'' to 
mean ``an officer or employee of the executive branch of the United 
States, or of any independent agency of the United States, a Federal 
Reserve bank director, officer, or employee, or an officer or employee 
of the District of Columbia,'' including ``a special Government 
employee as defined in 18 U.S.C. 202.'' 5 CFR 2640.102(b). The language 
of this definition in 5 CFR part 2640 carefully covered all individuals 
then subject to the statute, including certain individuals who were not 
executive branch employees. Compare id. with 18 U.S.C. 208(a) (covering 
``an officer or employee of the executive branch of the United States 
Government, or of any independent agency of the United States, a 
Federal Reserve bank director, officer, or employee, or an officer or 
employee of the District of Columbia, including a special Government 
employee''). The applicability of 5 CFR part 2640 was, thus, 
coextensive with the applicability of section 208.
    Recently, however, a cross-reference in the organic statute of a 
newly created board has expanded the coverage of the requirements of 
section 208 to include the board's members and staff, who would not 
otherwise be subject to section 208. Public Law 114-187, section 109(a) 
(2016). In order to ensure the continued applicability of 5 CFR part 
2640 to all individuals subject to section 208, this interim regulation 
adds the phrase ``. . . , or any other individual subject to 
requirements of 18 U.S.C. 208'' at the end of the first sentence of the 
definition of ``employee.'' This technical amendment will guard against 
uncertainty as to the applicability of 5 CFR part 2640 to the members 
and staff of this board, as well as to others who may in the future 
become subject to section 208. Prior to issuing this regulation, OGE 
consulted with the Office of Personnel Management and the Department of 
Justice, and pursuant to section 201(c) of Executive Order 12674, as 
modified by Executive Order 12731, has obtained the concurrence of the 
Department of Justice.

II. Matters of Regulatory Procedure

Administrative Procedure Act

    Pursuant to sections 553(b) and 553(d)(3) of title 5 of the United 
States Code, the Director of the Office of Government Ethics has found 
good cause for dispensing with the usual requirements of notice and 
comment

[[Page 61100]]

and a 30-day delay in the rule's effective date. Because this minor 
amendment is strictly technical in nature, providing notice and comment 
and delaying the effective date are unnecessary. Moreover, in 
clarifying the meaning of ``employee,'' this rule is an interpretative 
rule and thus exempt from notice and comment and a delay in effective 
date pursuant to 5 U.S.C. 553(b) and 553(d)(2), respectively. Finally, 
this rule recognizes exemptions, which exempts the rule from the 30-day 
delayed effective date pursuant to 5 U.S.C. 553(d)(1). Nonetheless, 
this interim final rule provides a 60-day comment period for agencies 
and the public. The Office of Government Ethics will review any 
comments received during the comment period and consider any 
modifications to this rule that appear warranted.

Regulatory Flexibility Act

    As Director of the Office of Government Ethics, I certify under the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) that this interim final 
rule would not have a significant economic impact on a substantial 
number of small entities because it primarily affects covered 
employees.

Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply 
because this regulation does not contain information collection 
requirements that require approval of the Office of Management and 
Budget.

Unfunded Mandates Reform Act

    For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
chapter 25, subchapter II), this interim final rule would not 
significantly or uniquely affect small governments and will not result 
in increased expenditures by State, local, and tribal governments, in 
the aggregate, or by the private sector, of $100 million or more (as 
adjusted for inflation) in any one year.

Congressional Review Act

    The Office of Government Ethics has determined that this rulemaking 
involves a nonmajor rule under the Congressional Review Act (5 U.S.C. 
chapter 8) and will, before the interim final rule takes effect, submit 
a report thereon to the U.S. Senate, House of Representatives and 
General Accounting Office in accordance with that law.

Executive Order 12866

    In promulgating this rule amendment, the Office of Government 
Ethics has adhered to the regulatory philosophy and the applicable 
principles of regulation set forth in section 1 of Executive Order 
12866, Regulatory Planning and Review. The Office of Management and 
Budget has determined that this technical rule amendment is not 
``significant'' under Executive Order 12866.

Executive Order 12988

    As Director of the Office of Government Ethics, I have reviewed 
this interim final rule in light of section 3 of Executive Order 12988, 
Civil Justice Reform, and certify that it meets the applicable 
standards provided therein.

List of Subjects in 5 CFR Part 2640

    Conflict of interests, Government employees.

    Approved: August 30, 2016.
Walter M. Shaub, Jr.,
Director, Office of Government Ethics.

    Accordingly, for the reasons set forth in the preamble, the Office 
of Government Ethics amends 5 CFR part 2640 as follows:

PART 2640--INTERPRETATION, EXEMPTIONS AND WAIVER GUIDANCE 
CONCERNING 18 U.S.C. 208 (ACTS AFFECTING A PERSONAL FINANCIAL 
INTEREST)

0
1. The authority citation for part 2640 continues to read as follows:

    Authority: 5 U.S.C. App. (Ethics in Government 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.


0
2. Revise the first sentence of Sec.  2640.102(b) to read as follows:


Sec.  2640.102  Definitions.

* * * * *
    (b) Employee means an officer or employee of the executive branch 
of the United States, or of any independent agency of the United 
States, a Federal Reserve bank director, officer, or employee, an 
officer or employee of the District of Columbia, or any other 
individual subject to requirements of 18 U.S.C. 208. * * *
* * * * *
[FR Doc. 2016-21293 Filed 9-2-16; 8:45 am]
BILLING CODE 6345-03-P

61099 Rules and Regulations Federal Register Vol. 81, No. 172 Tuesday, September 6, 2016 This section of the FEDERAL REGISTER (Acts Affecting A Personal Financial of any independent agency of the contains regulatory documents having general Interest); Amendment to Definition of United States, a Federal Reserve bank applicability and legal effect, most of which ‘Employee.’ ’’ director, officer, or employee, or an are keyed to and codified in the Code of Instructions: All submissions must officer or employee of the District of Federal Regulations, which is published under include OGE’s agency name and the Columbia,’’ including ‘‘a special 50 titles pursuant to 44 U.S.C. 1510. Regulation Identifier Number (RIN), Government employee as defined in 18 The Code of Federal Regulations is sold by 3209–AA09, for this rulemaking. All U.S.C. 202.’’ 5 CFR 2640.102(b). The the Superintendent of Documents. Prices of comments, including attachments and language of this definition in 5 CFR part new books are listed in the first FEDERAL other supporting materials, will become 2640 carefully covered all individuals REGISTER issue of each week. part of the public record and be subject then subject to the statute, including to public disclosure. Comments may be certain individuals who were not posted on OGE’s Web site, www.oge.gov. executive branch employees. Compare OFFICE OF GOVERNMENT ETHICS Sensitive personal information, such as id. with 18 U.S.C. 208(a) (covering ‘‘an account numbers or Social Security officer or employee of the executive 5 CFR Part 2640 numbers, should not be included. branch of the United States RIN 3209–AA09 Comments generally will not be edited Government, or of any independent to remove any identifying or contact agency of the United States, a Federal Interpretation, Exemptions and Waiver information. Reserve bank director, officer, or Guidance Concerning the Federal FOR FURTHER INFORMATION CONTACT: employee, or an officer or employee of Criminal Conflict of Interest Statute Christopher J. Swartz, Assistant the District of Columbia, including a Prohibiting Acts Affecting a Personal Counsel, Office of Government Ethics, special Government employee’’). The Financial Interest; Amendment to Suite 500, 1201 New York Avenue NW., applicability of 5 CFR part 2640 was, Definition of ‘‘Employee’’ Washington, DC 20005–3917; thus, coextensive with the applicability Telephone: 202–482–9300; TTY: 800– of section 208. AGENCY: Office of Government Ethics Recently, however, a cross-reference (OGE). 877–8339; Fax: 202–482–9237. in the organic statute of a newly created ACTION:Interim final rule with request SUPPLEMENTARY INFORMATION: board has expanded the coverage of the for comments. I. Background requirements of section 208 to include SUMMARY: The U.S. Office of The U.S. Office of Government Ethics the board’s members and staff, who Government Ethics is issuing this (OGE) is issuing this interim final rule would not otherwise be subject to interim final rule to make a technical making a technical modification to the section 208. Public Law 114–187, modification to the definition of definition of ‘‘employee’’ in its section 109(a) (2016). In order to ensure ‘‘employee’’ in its regulations regulations implementing 18 U.S.C. 208. the continued applicability of 5 CFR implementing the federal criminal Section 208(a) prohibits participation in part 2640 to all individuals subject to conflict of interest statute concerning particular matters affecting a covered section 208, this interim regulation adds acts affecting a personal financial individual’s personal and imputed the phrase ‘‘. . . , or any other interest, in order to ensure their financial interests. Section 208(b)(2) individual subject to requirements of 18 continued applicability to all authorizes OGE to promulgate U.S.C. 208’’ at the end of the first individuals subject to requirements of regulatory exemptions describing sentence of the definition of the statute. financial interests that are ‘‘too remote ‘‘employee.’’ This technical amendment DATES: This interim regulation is or too inconsequential’’ to warrant will guard against uncertainty as to the effective September 6, 2016. Comments disqualification pursuant to section applicability of 5 CFR part 2640 to the are invited and are due in writing by 208(a). Pursuant to 5 U.S.C. app. members and staff of this board, as well November 7, 2016. 402(b)(1) and Executive Order 12674 of as to others who may in the future April 12, 1989 (as modified by become subject to section 208. Prior to ADDRESSES: You may submit comments, Executive Order 12731), OGE is issuing this regulation, OGE consulted in writing, to OGE on this interim final responsible for providing uniform with the Office of Personnel rule, identified by RIN 3209–AA09, by regulations interpreting section 208. In Management and the Department of any of the following methods: E-Mail: usoge@oge.gov. Include the addition, section 208(d)(2) specifically Justice, and pursuant to section 201(c) reference ‘‘Interpretation, Exemptions directs OGE to adopt ‘‘uniform of Executive Order 12674, as modified and Waiver Guidance Concerning 18 regulations for . . . exemptions’’ from by Executive Order 12731, has obtained U.S.C. 208 (Acts Affecting A Personal the applicability of section 208(a). the concurrence of the Department of Financial Interest); Amendment to Consistent with these authorities, in Justice. Definition of ‘Employee’ ’’ in the subject 1996 OGE issued uniform regulations at II. Matters of Regulatory Procedure line of the message. 5 CFR part 2640 interpreting 18 U.S.C. Fax: (202) 482–9237. 208 and establishing exemptions for all Administrative Procedure Act ehiers on DSK5VPTVN1PROD with RULES Mail/Hand Delivery/Courier: Office of individuals subject to section 208(a). 61 Pursuant to sections 553(b) and Government Ethics, Suite 500, 1201 FR 66830 (Dec. 18, 1996). 553(d)(3) of title 5 of the United States New York Avenue NW., Washington, OGE established this uniform Code, the Director of the Office of DC 20005–3917, Attention: coverage by defining ‘‘employee’’ to Government Ethics has found good ‘‘Interpretation, Exemptions and Waiver mean ‘‘an officer or employee of the cause for dispensing with the usual Guidance Concerning 18 U.S.C. 208 executive branch of the United States, or requirements of notice and comment VerDate Sep<11>2014 15:06 Sep 02, 2016 Jkt 238001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\06SER1.SGM 06SER1

61100 Federal Register / Vol. 81, No. 172 / Tuesday, September 6, 2016 / Rules and Regulations and a 30-day delay in the rule’s effective regulation set forth in section 1 of NUCLEAR REGULATORY date. Because this minor amendment is Executive Order 12866, Regulatory COMMISSION strictly technical in nature, providing Planning and Review. The Office of notice and comment and delaying the Management and Budget has 10 CFR Part 171 effective date are unnecessary. determined that this technical rule [NRC–2015–0223] Moreover, in clarifying the meaning of amendment is not ‘‘significant’’ under ‘‘employee,’’ this rule is an Executive Order 12866. RIN 3150–AJ66 interpretative rule and thus exempt from notice and comment and a delay Executive Order 12988 Revision of Fee Schedules; Fee in effective date pursuant to 5 U.S.C. Recovery for Fiscal Year 2016; As Director of the Office of 553(b) and 553(d)(2), respectively. Correction Finally, this rule recognizes exemptions, Government Ethics, I have reviewed this which exempts the rule from the 30-day interim final rule in light of section 3 of AGENCY: Nuclear Regulatory delayed effective date pursuant to 5 Executive Order 12988, Civil Justice Commission. U.S.C. 553(d)(1). Nonetheless, this Reform, and certify that it meets the ACTION: Final rule; correcting interim final rule provides a 60-day applicable standards provided therein. amendment. comment period for agencies and the List of Subjects in 5 CFR Part 2640 public. The Office of Government Ethics SUMMARY: The U.S. Nuclear Regulatory will review any comments received Conflict of interests, Government Commission (NRC) published a final during the comment period and rule amending regulations that became employees. consider any modifications to this rule effective August 23, 2016. The fiscal Approved: August 30, 2016. year (FY) 2016 final fee rule, published that appear warranted. Walter M. Shaub, Jr., June 24, 2016, amended the licensing, Regulatory Flexibility Act Director, Office of Government Ethics. inspection, special project, and annual As Director of the Office of fees charged to NRC applicants and Government Ethics, I certify under the Accordingly, for the reasons set forth licensees. This document corrects the Regulatory Flexibility Act (5 U.S.C. in the preamble, the Office of annual fee for materials licensees in the chapter 6) that this interim final rule Government Ethics amends 5 CFR part category ‘‘Nuclear laundries’’ from the would not have a significant economic 2640 as follows: FY 2016 rate of $0 to the FY 2015 rate impact on a substantial number of small of $40,100. This correction allows entities because it primarily affects PART 2640—INTERPRETATION, Agreement States to continue to collect covered employees. EXEMPTIONS AND WAIVER fees in this fee category. GUIDANCE CONCERNING 18 U.S.C. DATES: Effective Date: September 6, Paperwork Reduction Act 208 (ACTS AFFECTING A PERSONAL 2016. The Paperwork Reduction Act (44 FINANCIAL INTEREST) ADDRESSES: Please refer to Docket ID U.S.C. chapter 35) does not apply NRC–2015–0223 when contacting the because this regulation does not contain ■ 1. The authority citation for part 2640 NRC about the availability of information collection requirements that continues to read as follows: information for this action. You may require approval of the Office of Authority: 5 U.S.C. App. (Ethics in obtain publicly-available information Management and Budget. Government Act of 1978); 18 U.S.C. 208; E.O. related to this action by any of the Unfunded Mandates Reform Act 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. following methods: For purposes of the Unfunded 215, as modified by E.O. 12731, 55 FR 42547, • Federal Rulemaking Web site: Go to Mandates Reform Act of 1995 (2 U.S.C. 3 CFR, 1990 Comp., p. 306. http://www.regulations.gov and search chapter 25, subchapter II), this interim for Docket ID NRC–2015–0223. Address final rule would not significantly or ■ 2. Revise the first sentence of questions about NRC dockets to Carol uniquely affect small governments and § 2640.102(b) to read as follows: Gallagher; telephone: 301–415–3463; will not result in increased expenditures email: Carol.Gallagher@nrc.gov. For § 2640.102 Definitions. technical questions, contact the by State, local, and tribal governments, in the aggregate, or by the private sector, * * * * * individual listed in the FOR FURTHER of $100 million or more (as adjusted for (b) Employee means an officer or INFORMATION CONTACT section of this inflation) in any one year. employee of the executive branch of the document. United States, or of any independent • NRC’s Agencywide Documents Congressional Review Act Access and Management System agency of the United States, a Federal The Office of Government Ethics has Reserve bank director, officer, or (ADAMS): You may obtain publicly- determined that this rulemaking employee, an officer or employee of the available documents online in the involves a nonmajor rule under the District of Columbia, or any other ADAMS Public Documents collection at Congressional Review Act (5 U.S.C. http://www.nrc.gov/reading-rm/ individual subject to requirements of 18 chapter 8) and will, before the interim adams.html. To begin the search, select U.S.C. 208. * * * final rule takes effect, submit a report ‘‘ADAMS Public Documents’’ and then thereon to the U.S. Senate, House of * * * * * select ‘‘Begin Web-based ADAMS [FR Doc. 2016–21293 Filed 9–2–16; 8:45 am] Search.’’ For problems with ADAMS, Representatives and General Accounting Office in accordance with that law. BILLING CODE 6345–03–P please contact the NRC’s Public ehiers on DSK5VPTVN1PROD with RULES Document Room (PDR) reference staff at Executive Order 12866 1–800–397–4209, 301–415–4737, or by In promulgating this rule amendment, email to pdr.resource@nrc.gov. the Office of Government Ethics has • NRC’s PDR: You may examine and adhered to the regulatory philosophy purchase copies of public documents at and the applicable principles of the NRC’s PDR, Room O1–F21, One VerDate Sep<11>2014 15:06 Sep 02, 2016 Jkt 238001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\06SER1.SGM 06SER1


Document Created: 2018-02-09 12:03:58
Document Modified: 2018-02-09 12:03:58
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule with request for comments.
DatesThis interim regulation is effective September 6, 2016. Comments are invited and are due in writing by November 7, 2016.
ContactChristopher J. Swartz, Assistant Counsel, Office of Government Ethics, Suite 500, 1201 New York Avenue NW., Washington, DC 20005-3917; Telephone: 202-482-9300; TTY: 800-877- 8339; Fax: 202-482-9237.
FR Citation81 FR 61099 
RIN Number3209-AA09
CFR AssociatedConflict of Interests and Government Employees
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR