Source: https://www.federalregister.gov/documents/2016/11/02/2016-26418/executive-branch-ethics-program-amendments
Timestamp: 2017-11-20 04:56:42
Document Index: 405290664

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Federal Register :: Executive Branch Ethics Program Amendments
A Rule by the Government Ethics Office on 11/02/2016
76271-76288 (18 pages)
3209-AA42
II. Summary of Comments and Changes to the Proposed Rule
List of Subjects in 5 CFR Part 2638
PART 2638—EXECUTIVE BRANCH ETHICS PROGRAM
https://www.federalregister.gov/d/2016-26418 https://www.federalregister.gov/d/2016-26418
Start Preamble Start Printed Page 76271
Monica Ashar, 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.
The U.S. Office of Government Ethics (OGE) published a proposed rule in the Federal Register, 81 FR 36193, June 6, 2016, proposing to amend 5 CFR part 2638, The Executive Branch Ethics Program. Part 2638 sets forth the mission of the executive branch ethics program, the responsibilities of key participants, and the procedures of the executive branch ethics program, as well as the procedures for government ethics education, correction of executive branch agency ethics programs, and corrective action involving individual employees.
These amendments, which are described in the preamble to the proposed rule, draw upon the collective experience of agency ethics officials across the executive branch and OGE as the supervising ethics office. They reflect extensive input from the executive branch ethics community and the inspector general community, as well as OGE's consultation with the Department of Justice (DOJ) and the Office of Personnel Management pursuant to 5 U.S.C. app. 402(b)(1). In short, they present a comprehensive picture of the executive branch ethics program, its responsibilities and its procedures, as reflected through nearly 40 years of interpreting and implementing the Ethics in Government Act of 1978, as amended (the Act), as well as other applicable statutes, regulations, Executive orders, and authorities.
The proposed rule provided a 60-day comment period, which ended on August 5, 2016. OGE received one set of timely and responsive comments, which were submitted by an individual. OGE also received one set of timely comments from an executive branch agency, but the agency withdrew its comments prior to the deadline. After carefully considering the individual's comments and making appropriate modifications, and for the reasons set forth below and in the preamble to the proposed rule, OGE is publishing this final rule.
OGE plans to issue several pieces of guidance to the executive branch ethics community in order to provide assistance and instruction regarding the implementation of these amendments. Additionally, OGE Desk Officers are available to answer questions from their respective agencies.
As noted above, OGE received one set of comments on the proposed rule. In several instances, the commenter proposed minor, largely technical changes in wording. These proposed changes pertained to §§ 2638.107(g) and (h) (adding the words “payment for” before “travel”), 2638.202 (deleting the citation to section 402 of the Act), and 2638.204 (adding the words “filed with or” before “transmitted”). For various reasons, OGE has not adopted these recommendations. OGE did, however, adopt the commenter's recommendation at § 2638.207(a) to change “the” agency to “an” agency. The more substantive changes proposed by the commenter are discussed in further detail below.
Additionally, as described below, OGE is making several technical changes to provisions involving Inspectors General. OGE is making these changes based on its continuing collaboration with the federal inspector general community and with the Council of the Inspectors General on Integrity and Efficiency (CIGIE), of which the Director of OGE (Director) is a statutory member. OGE has taken into consideration the views of CIGIE, as expressed both in CIGIE meetings and in various communications with individual members of CIGIE and CIGIE's leadership. OGE believes the changes will increase the effectiveness of its ongoing coordination with CIGIE. These changes are intended to align the regulation more closely with the Act and the Inspector General Act of 1978, as amended (the Inspector General Act).
Section 2638.101 sets forth the mission of the executive branch ethics program, which is to prevent conflicts of interest on the part of executive branch employees. The one commenter recommended revising the second sentence of § 2638.101(b), which describes the sources of potential conflicts of interest, so as to make the language clearer and to broaden the discussion of the mission to reference helping employees uphold their ethical responsibilities. Although OGE has revised this language for clarity consistent with the general aim of this comment, OGE has not adopted the specific recommendation to reference assistance to employees. Section 2638.101 is intended to articulate overarching, program-level principles, rather than focus on assisting employees individually.
OGE made several technical changes to § 2638.106, which describes the Start Printed Page 76272government ethics responsibilities of Inspectors General. These changes were made to more accurately reflect their authority as set forth in section 6 of the Inspector General Act.
Section 2638.206 establishes the requirement to provide the Director with notice of referrals made to DOJ regarding potential violations of criminal conflict of interest laws. OGE made several technical changes to this section to delete references to “agencies” in order to avoid potential confusion as to the appropriate channel for making required notifications. OGE sought neither to limit the independence of Inspectors General nor to exclude them from this regulatory requirement. OGE is, however, sensitive to general concerns about Inspector General independence and has eliminated the reference to “agencies” as a prophylactic measure to avoid creating any perception that Inspectors General would need to act in concert with various agency offices when filing the required notifications. Additionally, the one commenter suggested deleting the citation to section 402 of the Act from the undesignated paragraph of § 2638.206. As a result of the technical changes described above, the citation has been removed.
Related technical changes include deleting from § 2638.206(a) the 30-day deadline by which the Director must be notified of a referral to DOJ. This change aligns the regulation with the statutory language of 5 U.S.C. app. 402(e)(2), which requires notification “upon referral.” Accordingly, OGE also deleted the corresponding reference to the 30-day deadline from § 2638.604(n). Other technical changes include deleting the language at § 2638.206(b), which required the referring agency to provide the Director with certain information, because the provision was redundant of § 2638.202, “furnishing records and information generally.” In its place, OGE has added language committing that it will obtain the concurrence of CIGIE's Chairperson before implementing substantive changes to the OGE Form 202. With this self-imposed requirement, OGE is choosing to institutionalize its current collaboration with CIGIE as to the processes and procedures related to referrals to DOJ for prosecution. This language is not intended to require formal action other than agreement between OGE's Director and CIGIE's Chairperson. Further, concurrence would not be required when merely updating references to telephone numbers, email addresses, or similarly non-substantive information contained in the form. Finally, OGE deleted the language in § 2638.206(c) that recommended that an Inspector General, when making a covered referral to DOJ, provide the DAEO with copies of documents that are also provided to the Director. Because this provision offered only a recommendation, and would not have established a binding requirement, OGE found this language superfluous. The deletion of this language would not prevent an Inspector General from providing a DAEO with copies of documents, unless such disclosure were prohibited by law, and there may in fact be instances when OGE would encourage such sharing of documents in order to ensure that appropriate corrective action is taken.
Section 2638.209 sets forth the procedures for OGE's formal advisory opinion service, including the criteria that the Director will consider when determining whether to issue a formal advisory opinion. The sole commenter suggested replacing the fifth criterion, “the interests of the executive branch ethics program” at § 2638.209(b)(5), with “the importance of the question to upholding the ethics responsibilities of employees, as listed in § 2638.102.” OGE has not adopted this recommendation. The fifth criterion could already reasonably encompass the standard the commenter proposed. As currently drafted, the fifth criterion has the advantage of supplementing the first four criteria, which are unchanged from the prior regulation.
Section 2638.302 contains the definitions for the two training formats prescribed in subpart C. Regarding the definition of “live training” at § 2638.302(a), which requires that “the presenter personally communicate[] a substantial portion of the material at the same time as the employees being trained are receiving [it],” the sole commenter requested additional guidance on the minimum for satisfying the “substantial portion” criteria. He cites example 5, in which OGE demonstrates that the “substantial portion” standard can be been met with at least a 20-minute discussion following a 40-minute video. Although the 40-minute video or other non-live material alone would not satisfy this criterion, coupling the non-live material with at least a 20-minute phone call would bring the training into compliance with the minimum standard. Further, the phone call and the video presentation are not required to occur on the same day. Although OGE did not adopt the commenter's recommendation, OGE emphasizes that the default, as illustrated in examples 1 through 4, will be for the presenter to personally communicate the material for the full duration or nearly the full duration of the training, except when to do so is impracticable.
Section 2638.304 sets forth the requirements for administering initial ethics training to new agency employees. The sole commenter observed that the deadlines for completion at § 2638.304(b) and (b)(1) are expressed in months, while the deadline at § 2638.304(a)(2)(iii) is expressed in days. He suggested that the deadlines in this section should be expressed consistently. In response, OGE is making the deadlines consistent by changing the deadline at § 2638.304(a)(2)(iii) from 90 days to 3 months. OGE selected 3 months rather than 90 days because a 3-month deadline would allow agencies to offer initial ethics training four times a year, whereas four 90-day periods would fall slightly short of a full year. The commenter also addressed the 60-day period pertaining to special Government employees at § 2638.304(b)(2), mistakenly characterizing it as a deadline. The 60-day period tracks provisions in the Act, 5 U.S.C. app. 101(d), and in criminal conflict of interest statutes, 18 U.S.C. 203 and 205, that modify certain requirements for employees who serve no more than 60 days in a year. OGE has not adopted the recommendation, which was based on an incorrect reading of the proposed rule. In considering this comment, however, OGE identified an error in its proposed language and made a technical correction at § 2638.304(b)(2), changing “less than 60 days” to “no more than 60 days” so as to conform to the statutory time frame. OGE also made the same technical correction at § 2638.305(b)(2)(ii).
OGE made a similar technical correction at § 2638.305(a) to remedy an inconsistency. In the proposed rule, OGE stated that this section, with some exceptions, “applies to public filers who are Senate-confirmed Presidential nominees and appointees.” At the same time, § 2638.305(b)(2)(ii) prescribes procedures for certain special Government employees who are “expected to serve for less than 60 days in a calendar year.” Because these individuals are not public filers, OGE deleted the words “public filers who are” in § 2638.305(a).Start Printed Page 76273
Subpart E implements the limited authority of the Director to take certain actions against individual employees. The commenter challenged the authority of Inspectors General to investigate matters within DOJ's authority and recommended deleting language in §§ 2638.501 and 2638.502 authorizing referrals to Inspectors General. OGE has not adopted this recommendation. As noted above, OGE consulted with DOJ prior to submitting the proposed rule for publication, and DOJ did not object to this provision.
Section 2638.504 contains the procedures that OGE may use when the Director has reason to believe that an executive branch employee is violating or has violated a noncriminal government ethics law or regulation. OGE made two technical changes to this section. First, in § 2638.504(a), OGE is clarifying that, consistent with 5 U.S.C. app. 402(f)(2)(A)(ii)(II), the Presidential notification procedure is triggered only in connection with investigations to be initiated by agency heads. Second, in § 2638.504(b), OGE is clarifying that OGE may close only its own involvement in the matter. This provision was not intended to suggest that any other office would necessarily close its involvement.
The sole commenter also raised a question regarding the definition of disciplinary action at § 2638.603 with respect to military officers. He asserted that the phrase “comparable provisions may include those in the Uniform Code of Military Justice” was “overly vague and largely beside the point.” In response to this comment and to avoid any confusion, OGE has deleted examples of disciplinary actions, as well as examples of provisions that may apply to employees who are not subject to title 5 of the United States Code. Because agencies interpret the authority under which they administer disciplinary actions, as well as determine specific disciplinary actions, OGE does not want this provision to be misconstrued as seeking to limit the authority of agencies.
As noted above in the discussion of § 2638.206(a), OGE has also deleted the language of § 2638.604(n) in the proposed regulation, which reiterated a deadline that has since been removed. As a result, OGE has also renumbered the subsequent paragraphs.
Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select the regulatory approaches that maximize net benefits (including economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rulemaking has been designated as a “significant regulatory action” although not economically significant, under section 3(f) of Executive Order 12866. Accordingly, this final rule has been reviewed by the Office of Management and Budget.
Accordingly, the Office of Government Ethics is revising 5 CFR part 2638 as set forth below:
2638.101
2638.102
Government ethics responsibilities of employees.
2638.103
Government ethics responsibilities of supervisors.
2638.104
Government ethics responsibilities of agency ethics officials.
2638.105
Government ethics responsibilities of lead human resources officials.
Government ethics responsibilities of Inspectors General.
2638.107
Government ethics responsibilities of agency heads.
2638.108
Government ethics responsibilities of the Office of Government Ethics.
2638.201
2638.202
Furnishing records and information generally.
2638.203
Collection of public financial disclosure reports required to be submitted to the Office of Government Ethics.
2638.204
Collection of other public financial disclosure reports.
2638.205
Collection of confidential financial disclosure reports.
2638.206
Notice to the Director of certain referrals to the Department of Justice.
2638.207
Annual report on the agency's ethics program.
2638.208
Written guidance on the executive branch ethics program.
2638.209
Formal advisory opinions.
2638.210
Presidential transition planning.
2638.301
2638.302
2638.303
Notice to prospective employees.
2638.304
Initial ethics training.
2638.305
Additional ethics briefing for certain agency leaders.
2638.306
Notice to new supervisors.
2638.307
Annual ethics training for confidential filers and certain other employees.
2638.308
Annual ethics training for public filers.
2638.309
Agency-specific ethics education requirements.
2638.310
Coordinating the agency's ethics education program.
2638.401
2638.402
2638.403
Start Printed Page 76274 Subpart E—Corrective Action Involving Individual Employees
2638.501
2638.502
Violations of criminal provisions related to government ethics.
2638.503
Recommendations and advice to employees and agencies.
2638.504
Violations of noncriminal provisions related to government ethics.
2638.601
2638.602
2638.603
2638.604
Key program dates.
§ 2638.102
Consistent with the fundamental principle that public service is a public trust, every employee in the executive branch plays a critical role in the executive branch ethics program. As provided in the Standards of Conduct at part 2635 of this chapter, employees must endeavor to act at all times in the public's interest, avoid losing impartiality or appearing to lose impartiality in carrying out official duties, refrain from misusing their offices for private gain, serve as good stewards of public resources, and comply with the requirements of government ethics laws and regulations, including any applicable financial disclosure requirements. Employees must refrain from participating in particular matters in which they have financial interests and, pursuant to § 2635.402(f) of this chapter, should notify their supervisors or ethics officials when their official duties create the substantial likelihood of such conflicts of interest. Collectively, the charge of employees is to make ethical conduct the hallmark of government service.
§ 2638.103
(7) Consistent with § 2640.303 of this chapter, consulting with the Office of Government Ethics regarding the issuance of waivers pursuant to 18 U.S.C. 208(b);
(i) Establishing such written procedures as are appropriate relative to Start Printed Page 76275the size and complexity of the agency's financial disclosure program for the filing, review, and, when applicable, public availability of financial disclosure reports;
(14) Conducting ethics briefings for certain agency leaders, pursuant to § 2638.305;
(1) Request approval of supplemental agency regulations, pursuant to § 2635.105 of this chapter;
(2) Recommend a separate component designation, pursuant to § 2641.302(e) of this chapter;
(3) Request approval of an alternative means for collecting certain public financial disclosure reports, pursuant to § 2638.204(c);
(4) Request determinations regarding public reporting requirements, pursuant to §§ 2634.202(c), 2634.203, 2634.205, and 2634.304(f) of this chapter;
(5) Make determinations, other than exceptions in individual cases, regarding the means the agency will use to collect public or confidential financial disclosure reports, pursuant to §§ 2638.204 and 2638.205;
(6) Request an alternative procedure for filing confidential financial disclosure reports, pursuant to § 2634.905(a) of this chapter;
(7) Request a formal advisory opinion on behalf of the agency or a prospective, current, or former employee of that agency, pursuant to § 2638.209(d); and
(8) Request a certificate of divestiture, pursuant to § 2634.1005(b) of this chapter.
§ 2638.105
(a) The lead human resources official, as defined in § 2638.603, acting directly or through delegees, is responsible for:
(2) If the lead human resources official is responsible for conducting ethics training pursuant to subpart C of this part, that official must follow the DAEO's directions regarding applicable requirements, procedures, and the qualifications of any presenters, consistent with the requirements of this chapter;Start Printed Page 76276
(3) If the lead human resources official is responsible for issuing the required government ethics notices in written offers of employment, pursuant to § 2638.303, or providing supervisory ethics notices, pursuant to § 2638.306, that official must comply with any substantive and procedural requirements established by the DAEO, consistent with the requirements of this chapter; and
(4) To the extent applicable, the lead human resources official is required to provide the DAEO with a written summary and confirmation regarding procedures for implementing certain requirements of subpart C of this part by January 15 each year, pursuant to § 2638.310.
§ 2638.106
An agency's Inspector General has authority to conduct investigations of suspected violations of conflict of interest laws and other government ethics laws and regulations. An Inspector General is responsible for giving due consideration to a request made pursuant to section 403 of the Ethics in Government Act of 1978 (the “Act”) by the Office of Government Ethics for investigation of a possible violation of a government ethics law or regulation. Inspectors General provide the Office of Government Ethics notification of certain referrals to the Department of Justice, pursuant to § 2638.206. Inspectors General may consult with the Director for legal guidance on the application of government ethics laws and regulations, except that the Director may not make any finding as to whether a provision of title 18, United States Code, or any criminal law of the United States outside of such title, has been or is being violated. Nothing in this section will be construed to limit or otherwise affect the authority of an Inspector General under section 6 of the Inspector General Act of 1978, as amended, including the authority under section 6(a)(2) to make such investigations and reports relating to the administration of the programs and operations of the applicable establishment as are, in the judgment of the Inspector General, necessary or desirable.
§ 2638.107
§ 2638.108
(3) The Office of Government Ethics issues formal advisory opinions to interested parties, pursuant to § 2638.209. When developing a formal advisory opinion, the Office of Government Ethics will provide interested parties with an opportunity to comment.
(4) The Office of Government Ethics issues guidance and informal advisory opinions, pursuant to § 2638.208. When practicable, the Office of Government Ethics will consult with selected agency ethics officials to ascertain representative views of the DAEO community when developing guidance or informal advisory opinions that the Director determines to be of significant interest to a broad segment of the DAEO community.
(7) When practicable, the Office of Government Ethics convenes quarterly executive branch-wide meetings of key agency ethics officials. When the Office of Government Ethics convenes a major executive branch-wide training event, the event normally serves in place of a quarterly meeting.Start Printed Page 76277
(15) The Office of Government Ethics makes determinations regarding public financial disclosure requirements, pursuant to §§ 2634.202(c), 2634.203, 2634.205, and 2634.304(f) of this chapter.
§ 2638.202
§ 2638.203
§ 2638.204
(d) Exceptions in cases of extraordinary circumstances or temporary technical difficulties. Based on a determination that extraordinary circumstances or temporary technical difficulties make the use of an electronic filing system impractical, the DAEO or ADAEO may authorize an individual to file a public financial disclosure report using such alternate means of filing as are authorized in the program advisories of the Office of Government Ethics. To the extent practicable, agencies should limit the number of exceptions they grant under this paragraph each year. Start Printed Page 76278The Director may suspend an agency's authority to grant exceptions under this paragraph when the Director is concerned that the agency may be granting exceptions unnecessarily or in a manner that is inconsistent with § 2638.601(c). Nothing in this paragraph limits the authority of the agency to excuse an employee from filing electronically to the extent necessary to provide reasonable accommodations under the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, or other applicable legal authority.
§ 2638.205
§ 2638.206
§ 2638.207
§ 2638.208
§ 2638.209
(c) Role of the formal advisory opinion service. The formal advisory opinion service of the Office of Government Ethics is not intended to replace the government ethics advice and counseling programs maintained by executive branch agencies. Normally, formal advisory opinions will not be issued with regard to the types of questions appropriately directed to an agency's DAEO. If a DAEO receives a request that the DAEO believes might appropriately be answered by the Office of Government Ethics through a formal advisory opinion, the DAEO will consult informally with the General Counsel of the Office of Government Ethics for instructions as to whether the matter should be referred to the Office of Government Ethics or retained by the agency for handling. Except in unusual circumstances, the Office of Government Ethics will not render formal advisory opinions with respect to hypothetical situations posed in requests for formal advisory opinions. At the discretion of the Director, however, the Office of Government Ethics may render formal advisory Start Printed Page 76279opinions on certain proposed activities or financial transactions.
(e) Submitting a request for a formal advisory opinion. The request must be submitted either by electronic mail addressed to ContactOGE@oge.gov or by mail, through either the United States Postal Service or a private shipment service, to the Director of the Office of Government Ethics, Suite 500, 1201 New York Avenue NW., Washington, DC 20005-3917. Personal deliveries will not be accepted.
§ 2638.210
§ 2638.301
Every agency must carry out a government ethics education program to teach employees how to identify government ethics issues and obtain assistance in complying with government ethics laws and regulations. An agency's failure to comply with any Start Printed Page 76280of the education or notice requirements set forth in this subpart does not exempt an employee from applicable government ethics requirements.
§ 2638.302
An agency ethics official provides a presentation regarding government ethics and takes questions from participants who are assembled in a training room with the ethics official. At the end of the session, the ethics official provides contact information for participants who wish to pose additional questions. This training is considered live.
An agency ethics official provides a presentation to a group of employees in an auditorium. She presents an introduction and a brief overview of the material that will be covered in the training. She has participants watch a prerecorded video regarding government ethics. She stops the video frequently to elaborate on key concepts and offer participants opportunities to pose questions before resuming the video. At the end of the session, she recaps key concepts and answers additional questions. She then provides contact information for employees who wish to pose additional questions. This training is considered live.
The ethics official in Example 2 arranges for several Senate-confirmed public filers stationed outside of headquarters to participate in the live training via streaming video or telephone. For these remote participants, the ethics official also establishes a means for them to pose questions during the training, such as by emailing questions to her assistant. She also provides these remote participants with instructions for contacting the ethics office to pose additional questions after the training. This training is also considered live for the remote participants.
Agency ethics officials present training via a telephone conference. A few dozen agency employees dial into the conference call. The ethics officials take questions that are submitted by email and provide contact information for employees who wish to pose additional questions later. This training is considered live.
Several Senate-confirmed public filers required to complete live training in a particular year are stationed at various facilities throughout the country. For these filers, an ethics official schedules a 20-minute conference call, emails them copies of the written materials and a link to a 40-minute video on government ethics, and instructs them to view the video before the conference call. During the conference call, the ethics official recaps key concepts, takes questions, and provides his contact information in case participants have additional questions. The public filers then confirm by email that they watched the video and participated in the conference call. This training is considered live because a substantial portion of the training was live.
An automated system allows employees to view a prerecorded video in which an agency ethics official provides training. At various points, the system poses questions and an employee selects from among a variety of possible answers. The system provides immediate feedback as to whether the selections are correct or incorrect. When the employee's selections are incorrect, the system displays the correct answer and explains the relevant concepts. This training is considered interactive.
If, instead of a video, the training described in Example 1 were to include animated or written materials interspersed with questions and answers, the training would still be considered interactive.
A DAEO emails materials to employees who are permitted under part 2638 to complete interactive training. The materials include a written training presentation, questions, and space for employees to provide written responses. Employees are instructed to submit their answers to agency ethics officials, who provide individualized feedback. This training is considered interactive.
A DAEO emails materials to employees who are permitted under part 2638 to complete interactive training. The materials include a written training presentation, questions, and an answer key. The DAEO also distributes instructions for contacting an ethics official with any questions about the subjects covered. This training meets the minimum requirements to be considered interactive, even though the employees are not required to submit their answers for review and feedback. However, any DAEO who uses this minimally interactive format is encouraged to provide employees with other opportunities for more direct and personalized feedback.
§ 2638.303
(c) Tracking. Each agency must establish written procedures, which the DAEO must review each year, for issuing the notice required in this section. In the case of an agency with 1,000 or more employees, the DAEO must review any submissions under § 2638.310 each year to confirm that the agency has implemented an appropriate process for meeting the requirements of this section.
§ 2638.304
(2) The DAEO may exclude a non-supervisory position at or below the Start Printed Page 76281GS-8 grade level, or the equivalent, from the requirement to complete the training presentation described in paragraph (e)(1) of this section, provided that:
(ii) The position does not meet the criteria set forth at § 2634.904 of this chapter; and
(f) Tracking. Each agency must establish written procedures, which the DAEO must review each year, for initial ethics training. In the case of an agency with 1,000 or more employees, the DAEO must review any submissions under § 2638.310 each year to confirm that the agency has implemented an appropriate process for meeting the requirements of this section.
The DAEO of a large agency decides that the agency's ethics officials will conduct live initial ethics training for high-level employees and certain procurement officials. The DAEO directs ethics officials to cover concepts related to financial conflicts of interest, impartiality, misuse of position, and gifts during the live training sessions. She also coordinates with the agency's Chief Information Officer to develop computerized training for all other new employees, and she directs her staff to include concepts related to financial conflicts of interest, impartiality, misuse of position, and gifts in the computerized training. The computerized training poses multiple-choice questions and provides feedback when employees answer the questions. At the DAEO's request, the agency's human resources officials distribute the required written materials as part of the onboarding procedures for new employees. The computerized training automatically tracks completion of the training, and the ethics officials use sign-in sheets to track participation in the live training. After the end of the calendar year, the DAEO reviews the materials submitted by the Office of Human Resources under § 2638.310 to confirm that the agency has implemented procedures for identifying new employees, distributing the written materials, and providing their initial ethics training. The agency's program for initial ethics training complies with the requirements of § 2638.304.
The agency head, the DAEO, and the lead human resources official of an agency with more than 1,000 employees have agreed that human resources officials will conduct initial ethics training. The DAEO provides the lead human resources official with written materials for use during the training, approves the content of the presentations, and trains the human resources officials who will conduct the initial ethics training. After the end of the calendar year, the lead human resources official provides the DAEO with a copy of the agency's procedures for identifying new employees and providing initial ethics training, and the lead human resources official confirms that there is a reasonable basis for concluding that the procedures have been implemented. The DAEO reviews these procedures and finds them satisfactory. The agency has complied with its tracking obligations with regard to initial ethics training.
§ 2638.305
In addition to other applicable requirements, each individual covered by this section must complete an ethics briefing to discuss the individual's immediate ethics obligations. Although the ethics briefing is separate from the initial ethics training, the agency may elect to combine the ethics briefing and the initial ethics training, provided that the requirements of both this section and § 2638.304 are met.
(a) Coverage. This section applies to Senate-confirmed Presidential nominees and appointees, except for those in positions identified in § 2634.201(c)(2) of this chapter.
(c) Qualifications of presenter. The employee conducting the briefing must have knowledge of government ethics laws and regulations and must be Start Printed Page 76282qualified, as the DAEO deems appropriate, to answer the types of basic and advanced questions that are likely to arise regarding the required content.
A group of ethics officials conducts initial ethics training for six Senate-confirmed Presidential appointees within 15 days of their appointments. At the end of the training, ethics officials meet individually with each of the appointees to conduct their ethics briefings. The agency and the appointees have complied with both § 2638.304 and § 2638.305.
The Senate confirms a nominee for a position as an Assistant Secretary. After the nominee's confirmation but several days before her appointment, the nominee completes her initial ethics briefing during a telephone call with an agency ethics official, and the ethics official records the date of the briefing. The agency and the nominee have complied with § 2638.305. During the telephone call, the ethics official also discusses the content required for initial ethics training and provides the nominee with instructions for accessing the required written materials online. The agency and the nominee have also complied with § 2638.304.
§ 2638.306
(c) Written materials. The written materials must include contact information for the agency's ethics office and the text of § 2638.103. In addition, a copy of, a hyperlink to, or the address of a Web site containing the Principles of Ethical Conduct must be included, as well as such other information as the DAEO deems necessary for new supervisors.
(d) Tracking. Each agency must establish written procedures, which the DAEO must review each year, for supervisory ethics notices. In the case of an agency with 1,000 or more employees, the DAEO must review any submissions under § 2638.310 each year to confirm that the agency has implemented an appropriate process for meeting the requirements of this section.
§ 2638.307
(1) Each employee who is required to file an annual confidential financial disclosure report pursuant to § 2634.904 of this chapter during that calendar year, except an employee who ceases to be a confidential filer before the end of the calendar year;
(f) Tracking. The following tracking requirements apply to training conducted pursuant to this section. An employee covered by this section must confirm in writing the completion of annual ethics training and must comply with any procedures established by the DAEO for such confirmation. If the DAEO or other presenter has knowledge that an employee completed required Start Printed Page 76283training, that individual may record the employee's completion of the training, in lieu of requiring the employee to provide written confirmation. In the case of an automated system that delivers interactive training, the DAEO may deem the employee to have confirmed the completion of the training if the system tracks completion automatically.
§ 2638.308
(a) Coverage. In any calendar year, this section applies to each employee who is required to file an annual public financial disclosure report pursuant to § 2634.201(a) of this chapter during that calendar year, except for an employee who ceases to be a public filer during that calendar year.
The DAEO of a small agency distributes the written materials for annual training by emailing a link to a Web site that contains the required materials. He then conducts a live training session for all of the agency's public filers. He spends the first 15 minutes of the training addressing concepts related to financial conflicts of interest, impartiality, misuse of position, and gifts. Because several participants are published authors, he spends the next 15 minutes covering restrictions on compensation for speaking, teaching, and writing. He then spends 20 minutes discussing hypothetical examples related to the work of the agency and 10 minutes answering questions. The training meets the content requirements of this section. Further, because live training satisfies the requirements for interactive training, this training meets the formatting requirements for all public filers, including those required to complete interactive training.
An ethics official personally appears at each monthly senior staff meeting to conduct a 10-minute training session on government ethics. Across the year, he addresses concepts related to financial conflicts of interest, impartiality, misuse of position, gifts, and other subjects related to government ethics laws and regulations, although no one session covers all of these subjects. During each meeting, he distributes a one-page handout summarizing the key points of his presentation, takes questions, and provides contact information for employees who wish to pose additional questions. He records the names of the public filers in attendance at each meeting. Once a year, he emails them the required written materials, as well as the one-page summaries. While many of these public filers do not attend all 12 meetings, each attends at least six sessions during the calendar year. Although some of the filers missed the sessions that addressed gifts, they all received the handout summarizing the presentation on gifts. The training satisfies the annual training requirement for the public filers who attended the meetings, including those required to complete interactive training. Moreover, because the ethics official recorded the names of the public filers who attended, the filers are not required to separately confirm their completion of the training.
One of the Presidentially appointed, Senate-confirmed employees in Example 2 was required to complete live training that year. Because she attended only four senior staff meetings during the year, she completed only 40 minutes of annual ethics training. The DAEO allows the employee to spend 20 minutes reviewing the handouts and written materials and send an email confirming that she completed her review before the end of the calendar year. This arrangement satisfies the requirements for live annual training because a substantial portion of the training was live.
§ 2638.309
The DAEO may establish additional requirements for the agency's ethics education program, with or without a supplemental agency regulation under § 2635.105 of this chapter.
(b) Employees performing ethics duties. The DAEO has an obligation to ensure that employees performing assigned ethics duties have the necessary expertise with regard to Start Printed Page 76284government ethics laws and regulations. If the DAEO determines that employees engaged in any activities described in §§ 2638.104 and 2638.105 require training, the DAEO may establish specific training requirements for them either as a group or individually.
§ 2638.310
In an agency with 1,000 or more employees, any office that is not under the supervision of the DAEO but has been delegated responsibility for issuing notices, pursuant to § 2638.303 or § 2638.306, or conducting training, pursuant to § 2638.304, must submit the following materials to the DAEO by January 15 each year:
§ 2638.401
§ 2638.402
§ 2638.403
If the Director determines that informal action, pursuant to § 2638.402, has not produced an acceptable resolution, the Director may issue an order directing the agency to take specific corrective action.
§ 2638.501
This subpart addresses the Director's limited authority, pursuant to sections 402(b)(9) and 402(f)(2) of the Act, to take certain actions with regard to individual employees if the Director suspects a violation of a noncriminal government ethics law or regulation. Section 402(f)(5) of the Act prohibits the Director from making any finding regarding a violation of a criminal law. Therefore, the Director will refer possible criminal violations to an Inspector General or the Department of Justice, pursuant to § 2638.502. If, however, the Director is concerned about a possible violation of a noncriminal government ethics law or regulation by an employee, the Director may notify the employee's agency, pursuant to § 2638.503. In the rare circumstance that an agency does not address a matter after receiving this notice, the Director may use the procedures in § 2638.504 to issue a nonbinding recommendation of a disciplinary action or an order to terminate an ongoing violation. Nothing in this subpart relieves an agency of its primary responsibility to ensure compliance with government ethics laws and regulations.
§ 2638.502
§ 2638.503
§ 2638.504
In the rare case that consultations made pursuant to § 2638.503 have not resolved the matter, the Director may use the procedures in this section if the Director has reason to believe that an employee is violating, or has violated, any noncriminal government ethics law or regulation. Any proceedings pursuant Start Printed Page 76285to this section will be conducted in accordance with applicable national security requirements.
(2) The administrative law judge will issue written instructions for the conduct of the hearing, including deadlines for submitting lists of proposed witnesses and exchanging copies of documentary evidence. The hearing will be conducted informally, Start Printed Page 76286and the administrative law judge may make such rulings as are necessary to ensure that the hearing is conducted equitably and expeditiously.
§ 2638.601
§ 2638.602
Each agency may, subject to the prior approval of the Office of Government Ethics, issue regulations not inconsistent with this part and this subchapter, using the procedures set forth in § 2635.105 of this chapter.
§ 2638.603
ADAEO or Alternate Designated Agency Ethics Official means an officer or employee who is designated by the head of the agency as the primary deputy to the DAEO in coordinating and managing the agency's ethics program in accordance with the provisions of § 2638.104.
Confidential filer means an employee who is required to file a confidential financial disclosure report pursuant to § 2634.904 of this chapter.
Corrective action means any action necessary to remedy a past violation or prevent a continuing violation of this part, including but not limited to restitution, change of assignment, disqualification, divestiture, termination of an activity, waiver, the creation of a qualified diversified or blind trust, or counseling.Start Printed Page 76287
DAEO or Designated Agency Ethics Official means an officer or employee who is designated by the head of the agency to coordinate and manage the agency's ethics program in accordance with the provisions of § 2638.104.
Principles of Ethical Conduct means the collection of general principles set forth in § 2635.101(b) of this chapter.
Public filer means an employee, former employee, or nominee who is required to file a public financial disclosure report, pursuant to § 2634.202 of this chapter.
§ 2638.604
(1) The Office of Government Ethics to issue its year-end status reports, pursuant to § 2638.108(a)(11); and
(2) In an agency with 1,000 or more employees, any office not under the supervision of the DAEO that provides notices or training required under subpart C of this part to provide a written summary and confirmation, pursuant to § 2638.310.
(b) February 1 is the deadline for the DAEO to submit the annual report on the agency's ethics program, pursuant to § 2638.207.
(c) February 15 is the deadline for employees to file annual confidential financial disclosure reports, pursuant to § 2634.903(a) of this chapter.
(d) May 15 is the deadline for employees to file annual public financial disclosure reports, pursuant to § 2634.201(a) of this chapter.
(e) May 31 is the deadline for the agency to submit required travel reports to the Office of Government Ethics, pursuant to § 2638.107(g).
(f) July 1 is the deadline for the DAEO to submit a letter stating whether components currently designated should remain designated, pursuant to § 2641.302(e)(2) of this chapter.
(g) November 30 is the deadline for the agency to submit required travel reports to the Office of Government Ethics, pursuant to § 2638.107(h).
(h) December 31 is the deadline for completion of annual ethics training for employees covered by §§ 2638.307 and 2638.308.
(i) By the deadline specified in the request is the deadline, pursuant to § 2638.202, for submission of all documents and information requested by the Office of Government Ethics in connection with a review of the agency's ethics program, except when the submission of the information or reports would be prohibited by law.
(j) Prior to appointment whenever practicable but in no case more than 15 days after appointment is the deadline, pursuant to § 2638.105(a)(1), for the lead human resources official to notify the DAEO that the agency has appointed a confidential or public financial disclosure filer.
(k) Prior to termination whenever practicable but in no case more than 15 days after termination is the deadline, pursuant to § 2638.105(a)(2), for the lead human resources official to notify the DAEO of the termination of a public financial disclosure filer.
(l) Within 15 days of appointment is the deadline for certain agency leaders to complete ethics briefings, pursuant to § 2638.305(b).
(m) Within 30 days of designation is the deadline for the agency head to notify the Director of the designation of any DAEO or ADAEO, pursuant to § 2638.107(a).
(n) Within 3 months of appointment is the deadline for new employees to complete initial ethics training, pursuant to § 2638.304(b).Start Printed Page 76288
(o) Within 1 year of appointment is the deadline for new supervisors to receive supervisory ethics notices, pursuant to § 2638.306(b).
(p) Not later than 12 months before any Presidential election is the deadline for the agency head or the DAEO to evaluate whether the agency's ethics program has an adequate number of trained agency ethics officials to deliver effective support in the event of a Presidential transition, pursuant to § 2638.210(a).
[FR Doc. 2016-26418 Filed 11-1-16; 8:45 am]