[Federal Register Volume 65, Number 224 (Monday, November 20, 2000)]
[Rules and Regulations]
[Pages 69655-69657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29493]



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

[[Page 69655]]



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 
Sec. 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.

[[Page 69656]]

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 up-to-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:


Sec. 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:


Sec. 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.
* * * * *


Sec. 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:


[[Page 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.


Sec. 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:


Sec. 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.


Sec. 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:


Sec. 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.
* * * * *


Sec. 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]
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