81 FR 95853 - Post-Employment Conflict of Interest Restrictions; Revision of Departmental Component Designations

OFFICE OF GOVERNMENT ETHICS

Federal Register Volume 81, Issue 250 (December 29, 2016)

The U.S. Office of Government Ethics (OGE) is issuing this final rule to revise the component designations of two agencies for purposes of the one-year post-employment conflict of interest restriction for senior employees. Specifically, OGE is revoking two existing component designations and adding five new component designations, based on the recommendations of the agencies concerned.

[Federal Register Volume 81, Number 250 (Thursday, December 29, 2016)]
[Rules and Regulations]
[Pages 95853-95854]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31457]



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Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / 
Rules and Regulations

[[Page 95853]]



OFFICE OF GOVERNMENT ETHICS

5 CFR Part 2641

RIN 3209-AA14


Post-Employment Conflict of Interest Restrictions; Revision of 
Departmental Component Designations

AGENCY: Office of Government Ethics.

ACTION: Final rule.

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SUMMARY: The U.S. Office of Government Ethics (OGE) is issuing this 
final rule to revise the component designations of two agencies for 
purposes of the one-year post-employment conflict of interest 
restriction for senior employees. Specifically, OGE is revoking two 
existing component designations and adding five new component 
designations, based on the recommendations of the agencies concerned.

DATES: This rule is effective December 29, 2016, except for the 
amendments to Appendix B to 5 CFR part 2641 set forth in amendatory 
instructions 2.b. and 2.c., which are effective March 29, 2017.

FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate 
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 Director of OGE (Director) is authorized by 18 U.S.C. 207(h) to 
designate distinct and separate departmental or agency components in 
the executive branch for purposes of 18 U.S.C. 207(c), the one-year 
post-employment conflict of interest restriction for senior employees. 
The representational bar of 18 U.S.C. 207(c) usually extends to the 
whole of any department or agency in which a former senior employee 
served in any capacity during the year prior to termination from a 
senior employee position. However, 18 U.S.C. 207(h) provides that 
whenever the Director determines that an agency or bureau within a 
department or agency in the executive branch exercises functions which 
are distinct and separate from the remaining functions of the 
department or agency and there exists no potential for use of undue 
influence or unfair advantage based on past Government service, the 
Director shall by rule designate such agency or bureau as a separate 
component of that department or agency. Under 18 U.S.C. 207(h)(2), 
component designations do not apply to persons employed at a rate of 
pay specified in or fixed according to subchapter II of 5 U.S.C. 
chapter 53 (the Executive Schedule). Component designations are listed 
in appendix B to 5 CFR part 2641.
    Pursuant to the procedures prescribed in 5 CFR 2641.302(e), two 
agencies forwarded written requests to OGE to amend their listings in 
appendix B to part 2641, and on October 18, 2016, OGE published a 
proposed rule in the Federal Register, 81 FR 71644, Oct. 18, 2016, that 
proposed to revise the component designations of those two agencies. 
The proposed rule provided a 30-day comment period, which ended on 
November 17, 2016. OGE did not receive any comments. The rationale for 
the proposed rule, which OGE is now adopting as final, is explained in 
the preamble at: https://www.thefederalregister.org/fdsys/pkg/FR-2016-10-18/pdf/2016-25054.pdf.
    For the reasons stated in the preamble to the proposed rule, OGE is 
granting the request of the Department of Labor and is amending the 
agency's listing in appendix B to part 2641 to remove the designation 
of the Employment Standards Administration (ESA), and in the place of 
ESA, designate the Office of Federal Contract Compliance Programs, 
Office of Labor Management Standards, Office of Workers' Compensation 
Programs, and the Wage and Hour Division as distinct and separate 
components of the Department of Labor for purposes of 18 U.S.C. 207(c). 
OGE also is granting the request of the Department of Transportation 
and amending the agency's listing in appendix B to part 2641 to remove 
the designation of the Surface Transportation Board and designate the 
Pipeline and Hazardous Materials Safety Administration as a distinct 
and separate component of the Department of Transportation for purposes 
of 18 U.S.C. 207(c).
    As indicated in 5 CFR 2641.302(f), a designation ``shall be 
effective on the date the rule creating the designation is published in 
the Federal Register and shall be effective as to individuals who 
terminated senior service either before, on or after that date.'' 
Initial designations in appendix B to part 2641 were effective as of 
January 1, 1991. The effective date of subsequent designations is 
indicated by means of parenthetical entries in appendix B. The new 
component designations made in this rule are effective December 29, 
2016.
    As also indicated in 5 CFR 2641.302(f), revocation of a component 
designation is effective 90 days after the publication in the Federal 
Register of the rule that revokes the designation. Accordingly, the 
component designation revocations made in this rule will take effect 
March 29, 2017. Revocations are not effective as to any individual 
terminating senior service prior to the expiration of the 90-day 
period.

II. Matters of Regulatory Procedure

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 final rule 
will not have a significant economic impact on a substantial number of 
small entities because it affects only Federal departments and agencies 
and current and former Federal employees.

Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply 
to this final rule because it does not contain information collection 
requirements that require the 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 final rule will not significantly or 
uniquely affect small governments and will not result in increased 
expenditures by State, local, and tribal governments, in the aggregate,

[[Page 95854]]

or by the private sector, of $100 million or more (as adjusted for 
inflation) in any one year.

Congressional Review Act

    The final rule is not a major rule as defined in 5 U.S.C. chapter 
8, Congressional Review of Agency Rulemaking.

Executive Orders 12866 and 13563

    In promulgating this final rule, the Office of Government Ethics 
has adhered to the regulatory philosophy and the applicable principles 
of regulation set forth in Executive Orders 12866 and 13563. This rule 
has not been reviewed by the Office of Management and Budget under 
Executive Order 12866 because it is not a ``significant'' regulatory 
action for the purposes of that order.

Executive Order 12988

    As Director of the Office of Government Ethics, I have reviewed 
this 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 2641

    Conflict of interests, Government employees.

    Approved: December 22, 2016.
Walter M. Shaub, Jr.,
Director,Office of Government Ethics.
    Accordingly, for the reasons set forth in the preamble, the Office 
of Government Ethics is amending 5 CFR part 2641 as set forth below:

PART 2641--POST-EMPLOYMENT CONFLICT OF INTEREST RESTRICTIONS

0
1. The authority citation for part 2641 continues to read as follows:

    Authority: 5 U.S.C. app. (Ethics in Government Act of 1978); 18 
U.S.C. 207; 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. Amend appendix B to part 2641 as follows:
0
a. Revise the listings for Parent: Department of Labor and Parent: 
Department of Transportation.
0
b. Effective March 29, 2017, remove the Employment Standards 
Administration component from the listing for Parent: Department of 
Labor
0
c. Effective March 29, 2017, remove the Surface Transportation Board 
component from the listing for Parent: Department of Transportation.
    The revisions read as follows:

Appendix B to Part 2641--Agency Components for Purposes of 18 U.S.C. 
207(c)

* * * * *

Parent: Department of Labor

    Components:

Bureau of Labor Statistics.
Employee Benefits Security Administration (formerly Pension and 
Welfare Benefits Administration) (effective May 16, 1997).
Employment and Training Administration.
Employment Standards Administration.
Mine Safety and Health Administration.
Occupational Safety and Health Administration.
Office of Disability Employment Policy (effective January 30, 2003).
Office of Federal Contract Compliance Programs (effective December 
29, 2016).
Office of Labor Management Standards (effective December 29, 2016).
Office of Workers' Compensation Programs (effective December 29, 
2016).
Pension Benefit Guaranty Corporation (effective May 25, 2011).
Wage and Hour Division (effective December 29, 2016).
* * * * *

Parent: Department of Transportation

    Components:

Federal Aviation Administration.
Federal Highway Administration.
Federal Motor Carrier Safety Administration (effective January 30, 
2003).
Federal Railroad Administration.
Federal Transit Administration.
Maritime Administration.
National Highway Traffic Safety Administration.
Pipeline and Hazardous Materials Safety Administration (effective 
December 29, 2016).
Saint Lawrence Seaway Development Corporation.
Surface Transportation Board (effective May 16, 1997).
* * * * *
[FR Doc. 2016-31457 Filed 12-28-16; 8:45 am]
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