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.

Rules and Regulations Federal Register

69655

Vol. 65, No. 224

Monday, November 20, 2000

OFFICE OF GOVERNMENT ETHICS

5 CFR Parts 2634, 2635 and 2638

RINs 3209–AA00 and 3209–AA04

Technical Updating Amendments and

Correction to Certain Executive Branch

Regulations of the Office of

Government Ethics

AGENCY: Office of Government Ethics

(OGE).

ACTION: Final rule; technical

amendments.

SUMMARY: The Office of Government

Ethics is updating and correcting some

of the sections of its executive branch

regulations on financial disclosure,

standards of ethical conduct and ethics

responsibilities. These amendments

include the addition to the financial

disclosure regulation of statutorily

mandated higher categories of value

reporting and adjustment of the

reporting thresholds for gifts and travel

reimbursements. In addition, OGE is

raising the dollar ceiling for widely

attended gathering nonsponsor gifts

under the standards regulation.

DATES: The amendments in this

rulemaking document are effective

November 20, 2000, except for the

amendments to 5 CFR 2634.304 that are

being made retroactively effective to

January 1, 1999.

FOR FURTHER INFORMATION CONTACT:

William E. Gressman, Senior Associate

General Counsel, Office of Government

Ethics, telephone: 202–208–8000, ext.

1110; TDD: 202–208–8025; FAX: 202–

208–8037.

SUPPLEMENTARY INFORMATION: The Office

of Government Ethics is amending

various sections of its executive

branchwide ethics regulations on

financial disclosure, standards of ethical

conduct (the Standards), and

Government ethics responsibilities, as

codified at 5 CFR parts 2634, 2635 and

2638, in order to update them. These

technical amendments also include a

correction of a typographical error in 5

CFR 2634.301(d)(6).

These revisions to pertinent

provisions of OGE’s branchwide

financial disclosure regulation, as

codified at 5 CFR 2634.301(d) and

2634.302(b)(1), will add to the

regulation the higher categories of value

for assets, income, transactions and

liabilities over $1,000,000 as required

for public reports (on the Standard Form

(SF) 278) under the Ethics in

Government Act (the Ethics Act), as

amended by sections 20 and 22 of the

1995 Lobbying Disclosure Act (Public

Law 104–65). See section 102(a)(1)(B),

(d)(1) and (e)(1) and the then-newly

added section 102(a)(8) of the Ethics

Act, 5 U.S.C. appendix, section

102(a)(1)(B), (a)(8), (d)(1) and (e)(1). The

higher categories of value for assets,

transactions (as recently determined by

OGE for reports on the new 2000 edition

of the SF 278 only), and liabilities are:

$1,000,001 to $5,000,000; $5,000,001 to

$25,000,000; $25,000,001 to

$50,000,000; and over $50,000,000. For

income, the higher categories are:

$1,000,001 to $5,000,000; and over

$5,000,000. The new regulatory text

would also clarify that the higher

categories only apply to items held by

the report filer alone or jointly with his

or her spouse and/or dependent

children. For any such items held solely

by a filer’s spouse and/or dependent

children, only the traditional ‘‘over

$1,000,000’’ category would apply. To

date, in a series of guidance

memorandums over the years, OGE has

asked departments and agencies to so

notify filers administratively.

In addition, OGE is retroactively

adjusting, to January 1, 1999, the

reporting thresholds for gifts and travel

reimbursements in the OGE executive

branchwide regulation at 5 CFR

2634.304 (& as illustrated in examples

following that section) for both the

public and confidential financial

disclosure systems under section

102(a)(2)(A) & (B) of the Ethics Act, 5

U.S.C. appendix, section 102(a)(2)(A) &

(B), as extended to the executive branch

confidential reporting system in subpart

I of OGE’s 5 CFR part 2634 regulation.

These changes are necessitated by the

increase by the General Services

Administration (GSA) of the ‘‘minimal

value’’ to $260 or less (from the prior

level of $245 or less) for the three-year

period 1999–2001 under the Foreign

Gifts and Decorations Act, to which the

Ethics Act and OGE regulatory

thresholds are pegged. See 64 FR

13700–13701 (March 22, 1999), revising

the GSA foreign gifts regulation, now to

be codified at new 41 CFR 102–42.10

(formerly § 101–49.001–5), see 65 FR

45540 (July 24, 2000). The new

reporting thresholds being codified in

OGE’s financial disclosure regulation

are ‘‘more than $260’’ for the

aggregation threshold for reporting and

‘‘$104 or less’’ for gifts and

reimbursements which do not have to

be counted towards the aggregate

threshold (from the prior levels of $250

and $100, respectively). Further, OGE

will adjust those thresholds in the

future as needed in light of GSA’s

revaluation of ‘‘minimal value’’ every

three years for foreign gifts purposes.

Finally, the widely attended gathering

gift exception ceiling for nonsponsor

gifts of free attendance under the

standards of ethical conduct regulation,

at 5 CFR 2635.204(g)(2) (& as illustrated

in a couple of examples following

paragraph (g)), will likewise be raised

from $250 to $260. As OGE noted in the

preambles to the proposed and final

rules on such nonsponsor gifts, that

ceiling is based in part on the financial

disclosure gifts reporting threshold. See

60 FR 31416 (June 15, 1995) and 61 FR

42968 (August 20, 1996). Thus, it is

reasonable now to adjust the

nonsponsor gift ceiling to match the

increase in the reporting threshold. The

other requirements for acceptance of

such nonsponsor gifts, including an

agency interest determination and

expected attendance by more than 100

persons, remain unchanged.

In addition, OGE is adding an

unrelated reference in the related

statutes section of the Standards, at 5

CFR 2635.902(l), to the criminal

prohibition at 18 U.S.C. 1030 on

fraudulent access and related activity in

connection with computers.

Finally, OGE is updating the citations

to the Ethics Act financial disclosure

provisions, current Executive Order

12674 (as modified by E.O. 12731), and

the definition of the executive branch in

the pertinent provisions of 5 CFR part

2638 on ethics responsibilities of OGE

and designated agency ethics officials.

69656 Federal Register / Vol. 65, No. 224 / Monday, November 20, 2000 / Rules and Regulations

Matters of Regulatory Procedure

Administrative Procedure Act

Pursuant to 5 U.S.C. 553(b) and (d), as

Director of the Office of Government

Ethics, I find good cause exists for

waiving the general notice of proposed

rulemaking, opportunity for public

comment and 30-day delay in

effectiveness as to these technical

updates and the correction. The notice,

comment and delayed effective date

provisions are being waived in part

because these minor amendments

concern matters of agency organization,

practice and procedure. Further, it is in

the public interest that correct and upto-date information be contained in the

affected sections of OGE’s regulations as

soon as possible. The increase in the

reporting thresholds for gifts and

reimbursements also lessens the

reporting burden somewhat, and thus

the effective date of that regulatory

revision is being made retroactively

effective to January 1, 1999, when the

change became effective under the

Ethics Act, as amended.

Executive Order 12866

In promulgating these minor

amendments, OGE 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.

These amendments have not been

reviewed by the Office of Management

and Budget under that Executive order,

since they are not deemed ‘‘significant’’

thereunder.

Executive Order 12988

As Director of the Office of

Government Ethics, I have reviewed this

final amendatory regulation in light of

section 3 of Executive Order 12988,

Civil Justice Reform, and certify that it

meets the applicable standards provided

therein.

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 rulemaking will not

have a significant economic impact on

a substantial number of small entities.

Paperwork Reduction Act

The Paperwork Reduction Act (44

U.S.C. chapter 35) does not apply

because this amendatory rulemaking

does not contain information collection

requirements that require the approval

of the Office of Management and

Budget.

Congressional Review Act

The Office of Government Ethics has

determined that this amendatory

rulemaking is a nonmajor rule under the

Congressional Review Act (5 U.S.C.

chapter 8) and has provided a report

thereon to the Senate, House of

Representatives and General Accounting

Office in accordance with that law.

List of Subjects

5 CFR Part 2634

Certificates of divestiture, Conflict of

interests, Government employees,

Penalties, Reporting and recordkeeping

requirements, Trusts and trustees.

5 CFR Part 2635

Conflict of interests, Government

employees.

5 CFR Part 2638

Conflict of interests, Government

employees, Reporting and

recordkeeping requirements.

Approved: November 13, 2000.

Amy L. Comstock,

Director, Office of Government Ethics.

Accordingly, the Office of

Government Ethics pursuant to its

authority under the Ethics in

Government Act and Executive Order

12674, as modified by E.O. 12731, is

amending 5 CFR parts 2634, 2635 and

2638 as follows:

PART 2634—EXECUTIVE BRANCH

FINANCIAL DISCLOSURE, QUALIFIED

TRUSTS, AND CERTIFICATES OF

DIVESTITURE

1. The authority citation for part 2634

continues to read as follows:

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

Government Act of 1978); 26 U.S.C. 1043;

Pub. L. 101–410, 104 Stat. 890, 28 U.S.C.

2461 note (Federal Civil Penalties Inflation

Adjustment Act of 1990), as amended by Sec.

31001, Pub. L. 104–134, 110 Stat. 1321 (Debt

Collection Improvement Act of 1996); 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.

2. Section 2634.301 is amended by

removing the dollar amount ‘‘$1,00,000’’

in paragraph (d)(6) and adding in its

place the dollar amount ‘‘$1,000,000’’,

by removing the ‘‘.’’ following paragraph

(d)(7) and adding a ‘‘;’’ in its place, and

by adding a new paragraph (d)(8) to read

as follows:

§ 2634.301 Interests in property.

* * * * *

(d) * * *

(8) Provided that, with respect to

items held by the filer alone or held

jointly by the filer with the filer’s

spouse and/or dependent children, the

following additional categories over

$1,000,000 shall apply:

(i) Greater than $1,000,000 but not

more than $5,000,000;

(ii) Greater than $5,000,000 but not

more than $25,000,000;

(iii) Greater than $25,000,000 but not

more than $50,000,000; and

(iv) Greater than $50,000,000.

* * * * *

3. Section 2634.302 is amended by

removing the ‘‘.’’ following paragraph

(b)(1)(viii) and adding a ‘‘;’’ in its place,

and by adding a new paragraph

(b)(1)(ix) to read as follows:

§ 2634.302 Income.

* * * * *

(b) * * *

(1) * * *

(ix) Provided that, with respect to

investment income of the filer alone or

joint investment income of the filer with

the filer’s spouse and/or dependent

children, the following additional

categories over $1,000,000 shall apply:

(A) Greater than $1,000,000 but not

more than $5,000,000; and

(B) Greater than $5,000,000.

* * * * *

§ 2634.304 [Amended]

4. Section 2634.304 is amended by:

a. Removing the words ‘‘$250 or

more’’ in paragraphs (a) and (b) and in

Example 1 following paragraph (d) and

adding in their place in each instance

the words ‘‘more than $260’’;

b. Removing the note following

paragraph (b) and the first note

following paragraph (d);

c. Removing the dollar amounts

‘‘$100’’ in paragraph (d) and in

Examples 1 and 2 following paragraph

(d) and adding in their place in each

instance the dollar amount ‘‘$104’’;

d. Removing the dollar amount

‘‘$150’’ in Example 1 following

paragraph (d) and adding in its place the

dollar amount ‘‘$190’’;

e. Removing the dollar amounts

‘‘$130’’ and ‘‘$250’’ in Example 3

following paragraph (d) and adding in

their place, respectively, the dollar

amount ‘‘$150’’ and the words ‘‘more

than $260’’; and

f. Removing the dollar amount ‘‘$250’’

in Example 4 following paragraph (d)

and adding in its place the dollar

amount ‘‘$260’’.

PART 2635—STANDARDS OF

ETHICAL CONDUCT FOR EMPLOYEES

OF THE EXECUTIVE BRANCH

5. The authority citation for part 2635

continues to read as follows:

Federal Register / Vol. 65, No. 224 / Monday, November 20, 2000 / Rules and Regulations 69657

Authority: 5 U.S.C. 7301, 7351, 7353; 5

U.S.C. App. (Ethics in Government Act of

1978); 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.

§ 2635.204 [Amended]

6. Section 2635.204 is amended by

removing the dollar amounts ‘‘$250’’ in

paragraph (g)(2) and in Examples 1 and

2 following paragraph (g)(6) and adding

in their place in each instance the dollar

amount ‘‘$260’’, and by removing the

dollar amount ‘‘$500’’ in Example 2

following paragraph (g)(6) and adding in

its place the dollar amount ‘‘$520’’.

7. Section 2635.902 is amended by

adding a new paragraph (l), previously

reserved, to read as follows:

§ 2635.902 Related statutes.

* * * * *

(l) The prohibition against fraudulent

access and related activity in connection

with computers (18 U.S.C. 1030).

* * * * *

PART 2638—OFFICE OF

GOVERNMENT ETHICS AND

EXECUTIVE AGENCY ETHICS

PROGRAM RESPONSIBILITIES

8. The authority citation for part 2638

continues to read as follows:

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

Government Act of 1978); 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.

§ 2638.101 [Amended]

9. Section 2638.101 is amended by

removing the references to ‘‘II’’ in

paragraphs (a) and (b) and adding in

their place in each instance the

reference ‘‘I’’, and by adding the words

‘‘executive branch’’ between the words

‘‘These’’ and ‘‘regulations’’ in paragraph

(b).

10. Section 2638.104 is amended by

revising the definition of ‘‘Executive

branch’’ to read as follows:

§ 2638.104 Definitions.

* * * * *

Executive branch includes each

executive agency as defined in 5 U.S.C.

105 and any other entity or

administrative unit in the executive

branch. However, it does not include

any agency, entity, office or commission

that is defined by or referred to in 5

U.S.C. app. 109(8)–(11) of the Act as

within the judicial or legislative branch.

* * * * *

§ 2638.201 [Amended]

11. Section 2638.201 is amended by

removing the references to ‘‘II’’ and

adding in their place in each instance

the reference ‘‘I’’, and by removing the

words ‘‘11222 (relating to standards of

conduct’’ between the words ‘‘Order’’

and ‘‘for’’ in the last sentence and

adding in their place the words ‘‘12674

as modified (relating to principles of

ethical conduct’’.

[FR Doc. 00–29493 Filed 11–17–00; 8:45 am]

BILLING CODE 6345–01–U

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1710

RIN 0572–AB52

General and Pre-Loan Policies and

Procedures Common to Insured and

Guaranteed Loans

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of confirmation of direct

final rule.

SUMMARY: The Rural Utilities Service

(RUS) hereby gives notice that

comments were received regarding

direct final rule on General and PreLoan Policies and Procedures Common

to Insured and Guaranteed Electric

Loans, and reconfirms the effective date

of the direct final rule. This notice also

serves to address the comments

received.

DATES: The direct final rule, which was

published on May 17, 2000, at 65 FR

31246, was effective July 3, 2000.

FOR FURTHER INFORMATION CONTACT: Wei

M. Moy, Chief, Power Resources &

Planning Branch, Power Supply

Division, Rural Utilities Service, U.S.

Department of Agriculture, Stop 1568,

1400 Independence Avenue, SW,

Washington, DC 20250–1568.

Telephone: (202) 720–1438. FAX (202)

720–1401. E-mail: wmoy@rus.usda.gov.

Background

The Rural Utilities Service (RUS)

published a direct final rule on May 17,

2000, at 65 FR 31246, in the Federal

Register amending § 1710.254,

Alternative Sources of Power, to allow

flexibility in determining whether a

borrower needs to solicit bids from all

sources for new or replacement

generation. It also deleted the

requirement that borrowers seek bids if

RUS financial assistance is requested

from all sources for generation projects

of 10 megawatts or more or for

modifications to existing plants if it

results in an increase in capacity of 10

percent. RUS reserves the right to

review each project on a case-by-case

basis and determine whether there is a

need for a borrower to seek bids from all

sources for the project.

RUS received comments from three

parties on this direct final rule, two of

which were deemed adverse. According

to RUS policy, should adverse

comments be received concerning a

direct final rule, the agency would

withdraw the direct final rule and the

companion proposed rule, which was

published in the same issue of the

Federal Register, would be the ruling

action. RUS failed to issue a withdrawal

notice. As a result, the direct final rule

became effective on July 3, 2000. In lieu

of this oversight, RUS feels that this

notice of confirmation of direct final

rule serves to address the concerns of

the commentors and at the same time

confirms the effective date of the direct

final rule. If not for this oversight, this

rule would have become effective

through the normal regulatory process

though its companion proposed rule

and then as a final rule.

A summaries of these comments and

responses follows:

Comments

Comment: Tri-State is in agreement

with the amendment, and appreciates

the flexibility that RUS has written into

this amendment. However, Tri State

recommended (1) That language be

added regarding environmental issues,

and (2) that, if RUS requires an

applicant to solicit proposals for sources

of power, the applicant be allowed to

comply with the requirement by

submitting competitive bids previously

obtained by regional utilities.

Reply: RUS appreciates the support

for its efforts to modify the requirement

that borrowers must seek bids from all

sources if funding is requested for

generation projects equal to or greater

than 10 megawatt or for modifications to

existing plants if it results in an increase

in capacity of 10 percent or more.

Although the comments on

environmental issues and the timing of

competitive bid solicitations are

appreciated, RUS feels these comments

are non-responsive and do not effect

language in the regulation.

Comment: Otter Tail suggests that

competitive bidding should be a

standard imposed on any party seeking

federal financing and that the

inefficiencies in the review and

approval process should not cause

delays in an efficiently run business or

agency. Otter Tail feels that RUS

borrowers should be meeting their

power needs within the market place

and only when competitive policies

have been followed should any