Supplemental Standards of Ethical Conduct for Employees of the Consumer Product Safety Commission

SUMMARY: The Consumer Product Safety Commission, with the concurrence

of the Office of Government Ethics (OGE), is issuing regulations for

CPSC employees that supplement the Standards of Ethical Conduct for

Employees of the Executive Branch issued by OGE. These supplemental

regulations address outside employment by CPSC employees. The CPSC is

also revoking its existing agency employee conduct regulations which

addressed outside employment by CPSC employees.

EFFECTIVE DATE: December 13, 1996.

FOR FURTHER INFORMATION CONTACT:

Richard W. Allen, Assistant General Counsel for General Law, Consumer

Product Safety Commission, Washington, DC 20207; telephone (301) 504-

0980, extension 2212.

SUPPLEMENTARY INFORMATION:

I. Background

On August 7, 1992 the Office of Government Ethics (OGE) published

the Standards of Ethical Conduct for Employees of the Executive Branch

(the Standards). See 57 FR 35006-35067, as corrected at 57 FR 48557 and

52583 and 60 FR 51667, and amended at 61 FR 42965-42970 (as corrected

at 61 FR 48733) and 61 FR 50689-50691, with additional grace period

extensions at 59 FR 4779-4780, 60 FR 6390-6391 and 66857-66858, and 61

FR 40950-40952. The Standards, codified at 5 CFR part 2365, became

effective February 3, 1993, and established uniform standards of

ethical conduct applicable to personnel of all executive branch

agencies.

Section 2635.105 of the Standards authorizes executive agencies,

with the concurrency of OGE, to publish agency-specific supplemental

regulations that are necessary to implement their ethics programs. The

CPSC, with OGE's concurrence, has determined that the following

supplemental regulations are necessary for successful implementation of

the CPSC ethics program. By this notice, CPSC is also revoking its old

conduct regulations as codified at 16 CFR part 1030, subpart D and

adding a single section in subpart A, previously reserved, that

provides cross-references to 5 CFR parts 735, 2634 and 2635, as well as

to the CPSC's new supplemental regulation and, for CPSC Commissioners,

to the statutory provisions of 15 U.S.C. 2053(c).

II. Analysis of the Regulations

Section 8101.101 General

Section 8101.101(a) explains that the regulations apply to all CPSC

employees and supplement the standards of ethical conduct which are

applicable to all executive branch personnel.

Section 8101.102 Prohibitions Applicable to Commissioners

This section references and summarizes the statutory prohibitions

on outside employment applicable to the CPSC Commissioners is Section

4(c) of the Consumer Product Safety Act, 15 U.S.C. 2053(c).

Section 8101.103 Prior Approval for Outside Employment

Sections 2635.803 of the Standards authorizes agencies to issue

supplemental regulations requiring employees to obtain prior approval

before engaging in outside employment. The CPSC has long required

employees to obtain prior written approval before engaging in outside

employment or activities. Provisions of the now superseded CPSC

regulations codifies at 16 CFR part 1030, subpart D, have required CPSC

employees to obtain advance approval for outside employment since those

regulations were issued in 1976. The CPSC has found this requirement

useful in ensuring that the outside employment of employees conform

with all applicable laws and regulations and had determined that it is

necessary to the administration of its ethics program that employees

now continue to obtain prior approval before engaging in outside

employment.

Therefore, section 8101.103(a) of the supplemental regulations

reinstates the requirement for prior approval of outside employment of

CPSC employees other than special Government employees.

Section 8101.103(b) sets forth the criteria to be used in approving

or denying requests for approval of outside employment.

Section 8101.103(c) provides that employees will be notified in

writing of the action taken on their requests and that all requests

will be maintained in the Designated Agency Ethics Official's files.

Section 8101.103(d) states that approvals will be for a period of

up to two years. An employee must submit a new request for approval two

years after the date of approval, when the scope of the approved

activity changes, or when the employee's position changes, whichever

occurs first.

Section 8101.103(e) defines the term ``employment'' and describes

the circumstances in which prior approval must be obtained.

III. Repeal of Existing CPSC Outside Employment Regulations and

Addition of Cross-References

The CPSC is repealing its recently superseded conduct regulations

governing outside activities, codified at 16 CFR part 1030, subpart D--

Outside Employment and Other Activities. Other portions of the CPSC

regulations governing CPSC employees' responsibilities and conduct in

16 CFR Part 1030 were previously superseded when the executive branch

wide Standards of Ethical Conduct at 5 CFR part 2635 became generally

effective in February 1993 and were repealed by the CPSC. See 58 FR

12335 (March 4, 1993).

At this time, the CPSC is also issuing a residual provision at 16

CFR part 1030, subpart A, to cross-reference the executive branch-wide

Standards, this supplemental regulation, the executive branch-wide

financial disclosure regulations at 5 CFR part 2634 and, for CPSC

Commissioners, the statutory

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provisions of section 4(c) of the Consumer Product Safety Act, 15

U.S.C. 2053(c). The CPSC will also leave in 16 CFR part 1030, subpart

M, the existing rules of conduct required by the Privacy Act of 1974,

at 5 U.S.C. 552 a(e)(9). Subparts B-L of part 1030 are reserved.

IV. Matters of Regulatory Procedure

Generally, the Administrative Procedure Act (APA) (5 U.S.C. 553)

requires agencies to publish a notice of proposed rulemaking and

provide opportunity for public comment before issuing or revoking

regulations. However, the APA provides at 5 U.S.C. 553(b)(B) that the

requirement for a notice of proposed rulemaking is not applicable when

the agency finds for good cause that notice of proposed rulemaking and

public participation are ``impracticable, unnecessary, or contrary to

the public interest.''

The CPSC finds for good cause that notice of proposed rulemaking

and public participation are unnecessary because the CPSC is

essentially reissuing existing regulations in a different form; the

regulations pertain wholly to internal agency personnel matters; and

they affect only CPSC employees. Furthermore, it is in the public

interest that these CPSC supplemental ethics rules become effective as

soon as possible.

The APA also requires at 5 U.S.C. 553(d) that a substantive rule

must be published at least 30 days before its effective date unless the

agency finds for good cause that such delay is not needed. Again,

because the CPSC is essentially reissuing prior longstanding

requirements, the CPSC finds for good cause that a delayed effective

date is unnecessary. Consequently, this amendment and revocation shall

become effective immediately.

List of Subjects

5 CFR Part 8101

Conflict of interests, Government employees.

16 CFR Part 1030

Conflict of interests, Government employees, Privacy.

Dated: November 22, 1996.

Sadye E. Dunn,

Secretary, Consumer Product Safety Commission.

Approved: December 5, 1996.

Stephen D. Potts,

Director, Office of Government Ethics.

For the reasons set forth above, the Consumer Product Safety

Commission, with the concurrence of the Office of Government Ethics, is

amending title 5 and title 16 of the Code of Federal Regulations as

follows:

TITLE 5--[AMENDED]

1. A new chapter LXXI, consisting of part 8101, is added to title 5

of the Code of Federal Regulations to read as follows:

CHAPTER LXXI--CONSUMER PRODUCT SAFETY COMMISSION

PART 8101--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES

OF THE CONSUMER PRODUCT SAFETY COMMISSION

Sec.

8101.101 General.

8101.102 Prohibitions applicable to Commissioners.

8101.103 Prior approval for outside employment.

Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government

Act of 1978); 15 U.S.C. 2053(c); E.O. 12674, 54 FR 15139, 3 CFR,

1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR,

1990 Comp., p. 306; 5 CFR 2635.105, 2635.803.

Sec. 8101.101 General.

In accordance with 5 CFR 2635.105, the regulations in this part

apply to employees of the Consumer Product Safety Commission (CPSC).

These regulations supplement the Standards of Ethical Conduct for

Employees of the Executive Branch contained in 5 CFR part 2635.

Sec. 8101.102 Prohibitions applicable to Commissioners.

The Commissioners of the Consumer Product Safety Commission are

subject to section 4(c) of the Consumer Product Safety Act, 15 U.S.C.

2053(c). That statutory provision provides that a Commissioner may not

engage in any other business, vocation, or employment.

Sec. 8101.103 Prior approval for outside employment.

(a) Prior approval requirement. Before engaging in any outside

employment, with or without compensation, an employee, other than a

special Government employee. shall obtain prior written approval from

his or her supervisor and the Designated Agency Ethics Official (DAEO)

or Alternate DAEO. The Request for Approval of Outside Activity (CPSC

Form 241), available from the DAEO or unit administrative officer, may

be used to request approval. Requests for approval shall be forwarded

through normal supervisory channels.

(b) Standard of approval. Approval shall be granted only upon a

determination that the outside employment is not expected to involve

conduct prohibited by Federal statute or regulation, including 5 CFR

part 2635.

(c) Notification of action. Employees will be notified in writing

of the action taken on their requests. All requests will be maintained

in the files of the Designated Agency Ethics Official for the duration

of the requester's CPSC employment.

(d) Duration and scope of approval. Approval will be for a period

not to exceed two years, after which renewal approval must be sought.

An employment must submit a new request for approval after two years or

earlier upon either a significant change in the nature or scope of the

outside employment or a change in the employee's CPSC position.

(e) Definition of employment. For purposes of this section,

``employment'' means any form of non-Federal employment, business

relationship or activity involving the provision of personal services

by the employee, whether or not for compensation. Employment includes,

but is not limited to, personal services as an officer, director,

employee, agent, attorney, consultant, contractor, general partner,

trustee, teacher or speaker. Employment also includes writing when done

under an arrangement with another person for production or publication

of the written product. Employment does not, however, include

participation in the activities of a nonprofit charitable, religious,

professional, social, fraternal, educational, recreational, public

service, consumer or civic organization, unless such activities are for

compensation other than reimbursement for expenses or involve the

provision of professional services or advice to, or serving as an

officer, trustee, or member of a board or other such body of, an

organization that is a prohibited source as defined in 5 CFR

2635.203(d).

TITLE 16--[AMENDED]

CHAPTER II--CONSUMER PRODUCT SAFETY COMMISSION

PART 1030--EMPLOYEE STANDARDS OF CONDUCT--[AMENDED]

2. The authority citation for part 1030 is revised to read as

follows:

Authority: 5 U.S.C. 552a, 7301; 15 U.S.C. 2053(c).

3. Subpart A, previously reserved, is added to read as follows:

Subpart A--General

Sec. 1030.101 Cross-references to employee ethical conduct standards

and financial disclosure regulations.

Employees of the Consumer Product Safety Commission are subject to

the

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Standards of Ethical Conduct, 5 CFR part 2635, which are applicable to

all executive branch personnel; the CPSC regulations at 5 CFR part

8101, which supplement the executive branch standards; the Office of

Personnel Management regulations on employee conduct at 5 CFR part 735;

and the financial disclosure regulations at 5 CFR part 2634, which are

applicable to all executive branch personnel. In addition, the

Commissioners of the CPSC are subject to the statutory provisions of 15

U.S.C. 2053(c).

Subpart D--[Removed]

4. Subpart D is removed and reserved.

[FR Doc. 96-31591 Filed 12-12-96; 8:45 am]

BILLING CODE 6355-01-M