[Federal Register Volume 61, Number 85 (Wednesday, May 1, 1996)]
[Rules and Regulations]
[Pages 19187-19188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10690]



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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Part 0

[Docket No. FR-3331-C-02]
RIN 2501-AB55


Reinstatement of Two Sections of HUD's Standards of Conduct 
Regulation at 24 CFR Part 0; Correction

AGENCY: Office of the Secretary, Department of Housing and Urban 
Development.

ACTION: Correction to final rule.

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SUMMARY: This correction to a final rule issued by the Department of 
Housing and Urban Development (Department) reinstates two sections of 
HUD's Standards of Conduct at 24 CFR part 0, that pertain to ``Outside 
employment and other activities'' and ``Financial interests,'' which 
were deleted in a final rule published on April 5, 1996.

DATES: Effective Date: May 6, 1996.

FOR FURTHER INFORMATION CONTACT: Aaron Santa Anna, Assistant General 
Counsel, Ethics Law Division, at (202) 708-3815, or Sam E. Hutchinson, 
Associate General Counsel, Office of Human Resources Law, (202) 708-
0888; 451 Seventh Street, SW., Washington, DC 20410. Hearing or speech-
impaired individuals may call HUD's TDD number (202) 708-3259. 
(Telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION: On April 5, 1996, the Department published a 
final rule that revised the Department's Standards of Conduct 
regulation at 24 CFR Part 0. This final rule takes effect on May 6, 
1996. See 61 FR 15350. The final rule removed 24 CFR part 0 in its 
entirety and replaced it with a single section that provides a cross 
reference to the executive branch financial disclosure regulations at 5 
CFR part 2634 and the Standards of Ethical Conduct for Employees of the 
Executive Branch regulation at 5 CFR part 2635 (the Standards). Most of 
the provisions in 24 CFR part 0 were superseded when 5 CFR parts 2634 
and 2635 took effect.
    Among the provisions removed from 24 CFR part 0 were two--
Sec. 0.735-203 regarding ``Outside employment and other activities'' 
and Sec. 0.735-204 regarding ``Financial interests''--that were not 
superseded by 5 CFR parts 2634 and 2635. Those two provisions remained 
in effect temporarily under the Notes following 5 CFR 2635.804 and 5 
CFR 2635.403(a), as extended at 59 FR 4779-4780, 60 FR 6390-6391, and 
60 FR 66857-66858 (see also appendixes A-C to 5 CFR part 2635). The 
notes are ``grandfather'' provisions that currently preserve until 
August 7, 1996 (or until issuance of the agency's supplemental 
standards of ethical conduct regulation, whichever occurs first) such 
requirements for prior approval of employment or activities, and 
prohibitions on acquiring or holding a specific financial interest, 
contained in agency regulations, instructions or other issuances in 
effect prior to the effective date of the Standards. In accordance with 
these grandfather provisions, the Department is reinstating removed 
sections 0.735-203 and 0.735-204 of 24 CFR, renumbered respectively as 
sections 0.2 and 0.3, to avoid an untimely lapse in enforcement 
authority pending issuance of the Department's supplemental standards 
of ethical conduct as a final rule.
    On June 30, 1995, the Department published proposed supplemental 
standards of ethical conduct for its employees. See 60 FR 34420-34426. 
The proposed rule would establish restrictions on outside employment 
and activities and prohibitions on the ownership of certain financial 
interests, similar to those in 24 CFR 0.735-203 and 0.735-204. In that 
rulemaking document, the Department also proposed to revise 24 CFR part 
0 by removing all of the provisions therein and replacing them with a 
residual provision that would cross reference 5 CFR parts 2634 and 
2635, as well as the Department's supplemental standards of ethical 
conduct to be codified at 5 CFR part 7501. Upon publication of the 
Department's supplemental standards of ethical conduct as a final rule, 
the Department will, as proposed at 60 FR 34420-34426, amend the 
residual cross reference section in 24 CFR part 0 by adding a cross 
reference to the Department's supplemental standards of ethical conduct 
at 5 CFR part 7501. In

[[Page 19188]]

addition, if the Department's supplemental standards of ethical conduct 
regulation takes effect before the expiration of the grandfather period 
on August 7, 1996, the Department will, upon the effective date of 
those regulations, amend 24 CFR part 0 by removing the grandfathered 
sections regarding ``Outside employment and other activities'' and 
``Financial interests.''
    Accordingly, FR Doc. 96-8380, a final rule published in the Federal 
Register on April 5, 1996 (61 FR 15350), is amended by adding the 
following provisions in title 24 of the Code of Federal Regulations:

PART 0--STANDARDS OF CONDUCT

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

    Authority: 5 U.S.C. 7301; 42 U.S.C. 3535(d).


Sec. 0.735-203  [Redesignated as Sec. 0.2]

    2. Section 0.735-203 is redesignated as Sec. 0.2.


Sec. 0.735-204  [Redesignated as Sec. 0.3]

    3. Section 0.735-204 is redesignated as Sec. 0.3.

    Dated: April 25, 1996.
Camille E. Acevedo,
Assistant General Counsel for Regulations.
[FR Doc. 96-10690 Filed 4-30-96; 8:45 am]
BILLING CODE 4210-32-P