Removal of Rules on Standards of Conduct and Reporting Procedures on Defense Related Employment

DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Parts 721 and 722

Removal of Rules on Standards of Conduct and Reporting Procedures

on Defense Related Employment

AGENCY: Department of the Navy, DOD.

ACTION: Final rule; removal.

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SUMMARY: The Department of the Navy (DON) is removing rules for

employee standards of conduct and reporting procedures for defense-

related employment (32 CFR Parts 721 and 722). Both rules have been

superseded, and in that they no longer have any effect, are removed

immediately. Providing for a comment period before final action in this

case would be unnecessary, impracticable, and contrary to public

interest. However, DON will accept and consider comments from

interested persons in evaluating the effect of this action.

DATES: Effective Date of Removal: January 27, 1998.

Comment date: Comments on this removal action should be submitted

in writing to the address shown below on or before March 30, 1998.

ADDRESSES: Interested parties should submit written comments to

Department of the Navy, Office of the Judge Advocate General,

Administrative Law Division (Code 13), 200 Stovall Street, Alexandria,

Virginia, 22332-2400.

FOR FURTHER INFORMATION CONTACT: Lieutenant Commander Mike Quinn, (703)

604-8200.

SUPPLEMENTARY INFORMATION:

[[Page 3861]]

A. Background

On April 12, 1989, President Bush issued Executive Order (E.O.)

12674, ``Principles of Ethical Conduct for Government Officers and

Employees.'' Section 201(a) of E.O. 12674 made the Office of Government

Ethics (OGE) responsible for promulgating ``a single, comprehensive,

and clear set of executive-branch standards of conduct that shall be

objective, reasonable, and enforceable.''

The OGE issued uniform standards of ethical conduct for all

employees of the executive branch, codified at 5 CFR Part 2635, on

August 7, 1992 (57 FR 35006). These regulations became effective on

February 3, 1993.

Section 301(a) of E.O. 12674 allows agency heads to supplement,

where necessary and appropriate, the OGE standards of conduct. The

Secretary of Defense, in consultation and conjunction with the OGE,

issued supplemental ethical rules applicable to all Department of

Defense (DOD) Components in August 1993. These supplemental rules,

codified in 32 CFR Parts 83 and 84, state that the DOD ``shall have a

single source of standards of ethical conduct and ethics guidance,

including direction in the areas of financial and employment disclosure

systems, post-employment rules, enforcement, and training.'' See, 32

CFR 83.4(a) and 84.1(a).

With promulgation of the OGE regulations and the DOD ``Joint Ethics

Regulation,'' the DON's standards of conduct contained in 32 CFR part

721 have been completely superseded. The Secretary of the Navy formally

cancelled the DON's standards of conduct instruction on April 11, 1997.

For these reasons, the Navy is now removing and reserving 32 CFR part

721.

Similarly, the rule contained in 32 CFR part 722 no longer has any

meaning or effect. Part 722 contains requirements and procedures for

the filing of form DD 1787 by certain present, former or retired DON

personnel in reporting employment with DOD prime contractors. Authority

for this rule was formerly found in 10 U.S.C. 2397. The National

Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104-106, Sec.

4304) repealed this statutory provision. The reporting requirement that

this Part implements no longer exists.

B. Determination to Remove Without Prior Public Comment

This removal action is being issued as a final rule, without a

public comment period, as an exception to the DON's standard practice

of soliciting comments during the rulemaking process. Providing a

period of public comment in this case would be unnecessary,

impracticable, and contrary to the public interest. This determination

is based on several factors. First, removal of these Parts is entirely

administrative and corrective in nature, not requiring the exercise of

agency discretion. Second, this action has already been substantially

delayed, and further delay is unwarranted. Finally, to allow these

Parts to remain in the Code of Federal Regulations any longer may

mislead and confuse the public and past or present DON employees

regarding applicable ethics rules and post-government employment

reporting requirements.

C. Matters of Regulatory Procedure

Executive Order 12866, Regulatory Planning and Review

Removal of these Parts does not meet the definition of

``significant regulatory action'' for purposes of E.O. 12866.

Regulatory Flexibility Act

Removal of these Parts will not have a significant economic impact

on a substantial number of small entities for purposes of the

Regulatory Flexibility Act (5 U.S.C. chapter 6).

Paperwork Reduction Act

Removal of these rules will not impose collection of information

requirements for purposes of the Paperwork Reduction Act (44 U.S.C.

chapter 35, 5 CFR Part 1320).

List of Subjects

32 CFR Part 721

Conflict of interests, Government employees, Military personnel,

Reporting and recordkeeping requirements.

32 CFR Part 722

Conflict of interests, Government contracts, Government employees,

Military personnel, Reporting and recordkeeping requirements.

PARTS 721 AND 722--[REMOVED AND RESERVED]

Under the authority of Sec. 4304, Public Law 104-106, 110 Stat.

186, and E.O. 12674, and for the reasons set forth in the preamble,

remove and reserve parts 721 and 722 of title 32 of the Code of Federal

Regulations.

Dated: January 13, 1998.

Michael I. Quinn,

Lieutenant Commander, Judge Advocate General's Corps, U.S. Navy,

Federal Register Liaison Officer.

[FR Doc. 98-1922 Filed 1-26-98; 8:45 am]

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