Standards of Conduct; Conforming Changes

SUMMARY: This final rule removes Secs. 0.2 and 0.3 of 24 CFR, leaving

only Sec. 0.1, which provides cross-references to the executive branch-

wide requirements at 5 CFR parts 2634 and 2635, and to the Department's

supplemental regulation at 5 CFR part 7501. Sections 0.2 and 0.3 are

redundant and unnecessary because they repeat requirements contained in

5 CFR 7501.

DATES: Effective Date: April 29, 1998.

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 TTY number (202) 708-3259.

(Telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

I. Background

On April 5, 1996 (61 FR 15350), the Department published a final

rule that provided for removal of all of the then-existing provisions

in the Department's old Standards of Conduct regulation at 24 CFR part

0, and their replacement with a single section that provides a cross-

reference to 5 CFR parts 2634 and 2635, effective May 6, 1996. To

prevent an untimely lapse in enforcement authority for the two sections

of 24 CFR part 0 that had temporarily remained in effect pursuant to an

extended grace period in the Standards--Sec. 0.735-203 regarding

outside employment and other activities, and Sec. 0.735-204 regarding

financial interests--the Department published a correction to the final

rule on May 1, 1996 (61 FR 19187), effective May 6, 1996, preserving

those two sections at 24 CFR 0.2 and 0.3.

On July 9, 1996 (61 FR 36246), HUD issued a final rule establishing

uniform standards of ethical conduct at 5 CFR part 7501 for employees

of the Department to supplement the Standards of Ethical Conduct for

Employees of the Executive Branch issued by the Office of Government

Ethics (OGE). The preamble to the July 9, 1996 rule stated that upon

its effective date, the Department would amend 24 CFR part 0 to remove

the temporarily preserved sections regarding outside employment

(Sec. 0.2) and financial interests (Sec. 0.3). Accordingly, HUD is here

removing its superseded Standards of Conduct at 24 CFR 0.2 and 0.3.

II. Findings and Certifications

Justification for Final Rulemaking

In general, the Department publishes a rule for public comment

before issuing a rule for effect, in accordance with its own

regulations on rulemaking at 24 CFR part 10. However, part 10 does

provide for exceptions from that general rule where the agency finds

good cause to omit advance notice and public participation. The good

cause requirement is satisfied when prior public procedure is

``impracticable, unnecessary, or contrary to the public interest.'' (24

CFR 10.1) The Department finds that good cause exists to publish this

rule for effect without first soliciting public comment. Prior public

procedure is unnecessary because this rule only makes a conforming

change to 24 CFR part 0 to remove provisions that have been superseded

by revised requirements at 5 CFR part 7501.

Regulatory Flexibility Act

The Secretary in accordance with the Regulatory Flexibility Act (5

U.S.C. 605(b)), has reviewed and approved this rule, and in so doing

certifies that this rule would not have a significant economic impact

on a substantial number of small entities because it would affect only

Federal employees.

Environmental Impact

In accordance with 40 CFR 1508.4 of the regulations of the Council

on Environmental Quality and 24 CFR 50.19(c)(1) of the HUD regulations,

the policies and procedures contained in this rule do not direct,

provide for assistance or loan and mortgage insurance for, or otherwise

govern or regulate property acquisition, disposition, lease,

rehabilitation, alteration, demolition, or new construction, or set out

or provide for standards for construction, or construction materials,

manufactured housing or occupancy, and therefore, are categorically

excluded from the requirements of the National Environmental Policy

Act.

Executive Order 12612, Federalism

The General Counsel, as the Designated Official under section 6(a)

of Executive Order 12612, Federalism, has determined that the policies

contained in this rule will not have substantial direct effects on

States or their political subdivisions, or the relationship between the

Federal Government and the states, or on the distribution of power and

responsibilities among the various levels of government. Specifically,

this rule is only directed toward Federal employees and would not alter

the established roles of HUD and the States and local governments. As a

result, the rule is not subject to review under the order.

List of Subjects in 24 CFR Part 0

Administrative practice and procedure, Conflict of interests.

Accordingly, for the reasons set forth in the preamble, the

Department of Housing and Urban Development is amending title 24 of the

Code of Federal Regulations by revising part 0, to read as follows:

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).

Secs. 0.2 and 0.3 [Removed]

2. Sections 0.2 and 0.3 are removed.

Dated: March 23, 1998.

Andrew M. Cuomo,

Secretary.

[FR Doc. 98-8222 Filed 3-27-98; 8:45 am]

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