Executive Branch Financial Disclosure and Standards of Ethical Conduct Regulations
| Published date | 18 June 2020 |
| Citation | 85 FR 36715 |
| Record Number | 2020-12357 |
| Section | Rules and Regulations |
| Court | Government Ethics Office |
Federal Register, Volume 85 Issue 118 (Thursday, June 18, 2020)
[Federal Register Volume 85, Number 118 (Thursday, June 18, 2020)]
[Rules and Regulations]
[Pages 36715-36717]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12357]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 85, No. 118 / Thursday, June 18, 2020 / Rules
and Regulations
[[Page 36715]]
OFFICE OF GOVERNMENT ETHICS
5 CFR Parts 2634 and 2635
RIN 3209-AA52
Executive Branch Financial Disclosure and Standards of Ethical
Conduct Regulations
AGENCY: Office of Government Ethics.
ACTION: Final rule; technical amendments.
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SUMMARY: The U.S. Office of Government Ethics (OGE) is updating its
executive branch regulation on financial disclosure to reflect the
retroactive statutory increase of the reporting thresholds for gifts
and travel reimbursements. OGE is also updating the executive
branchwide standards of ethical conduct regulation to raise the widely
attended gatherings nonsponsor gifts exception dollar ceiling tied to
these thresholds. This change is not retroactive.
DATES:
Effective date: This final rule is effective June 18, 2020.
Applicability date: The amendments to 5 CFR 2634.304 and 2634.907
are applicable as of January 1, 2020.
FOR FURTHER INFORMATION CONTACT: Patrick J. Lightfoot, Assistant
Counsel, or Christie Chung, Assistant Counsel; Telephone: 202-482-9300.
SUPPLEMENTARY INFORMATION:
I. Background
The U.S. Office of Government Ethics (OGE) is amending pertinent
sections of its executive branchwide ethics regulations on financial
disclosure and standards of ethical conduct, as codified at 5 CFR parts
2634 and 2635, in order to update the thresholds for gifts and travel
reimbursements, as well as the widely attended gatherings nonsponsor
gifts exception dollar ceiling.
Increased Gifts and Travel Reimbursements Reporting Thresholds
First, OGE is revising its executive branch financial disclosure
regulation at 5 CFR part 2634 to reflect the increased reporting
thresholds for gifts, reimbursements, and travel expenses for both the
public and confidential executive branch financial disclosure systems.
The increased thresholds are applicable as of January 1, 2020. These
increases conform to the statutorily mandated public disclosure
reporting thresholds under section 102(a)(2)(A) and (B) of the Ethics
in Government Act as amended, 5 U.S.C. app. 102(a)(2)(A) and (B),
(Ethics Act) and are extended to confidential disclosure reporting by
OGE's regulation. Under the Ethics Act, the gifts and travel
reimbursements reporting thresholds are tied to the dollar amount for
the ``minimal value'' threshold for foreign gifts as the General
Services Administration (GSA) periodically redefines it.
GSA raised the ``minimal value'' amount under the Foreign Gifts and
Decorations Act, 5 U.S.C. 7342, to $415 for the three-year period 2020-
2022 (from the prior level of $390) in a March 10, 2020, Federal
Management Regulation Bulletin. See Gen. Servs. Admin., FMR B-50,
Foreign Gift and Decoration Minimal Value (2020) (revising
retroactively to January 1, 2020, the foreign gifts minimal value
definition as codified at 41 CFR 102-42.10).
Accordingly, applicable as of that same date, OGE is increasing the
thresholds for reporting of gifts and travel reimbursements from any
one source in 5 CFR 2634.304 and 2634.907(g). The thresholds have been
raised to ``more than $415'' for the gifts and travel reimbursements
aggregation thresholds and ``$166 or less'' for the de minimis
exception for gifts and travel reimbursements that do not have to be
aggregated. As noted, these regulatory increases implement the
underlying statutory increases effective January 1, 2020. OGE is also
updating the examples following those sections, including appropriate
adjustments to gift values.
OGE will continue to adjust the gifts and travel reimbursements
reporting thresholds in its part 2634 regulation in the future as
needed in light of GSA's redefinition of ``minimal value'' every three
years for foreign gifts purposes. See OGE's prior three-year adjustment
of those regulatory reporting thresholds, as published at 82 FR 22735
(May 18, 2017) (for 2017-2019, the aggregate reporting thresholds were
more than $390, with a $156 or less de minimis exception).
Increased Dollar Ceiling for the Exception for Nonsponsor Gifts of Free
Attendance at Widely Attended Gatherings
OGE is also increasing the exception ceiling for nonsponsor gifts
of free attendance at widely attended gatherings from $390 to $415 in
the executive branch standards of ethical conduct regulation, as
codified at 5 CFR 2635.204(g)(3) (and as illustrated in the examples
following paragraph (g)). This separate regulatory change is effective
upon publication in the Federal Register, on June 18, 2020. As OGE
noted in the preambles to the proposed and final rules on such
nonsponsor gifts, that ceiling is tied to the financial disclosure
gifts reporting threshold. See 60 FR 31415 (June 15, 1995) and 61 FR
42965 (Aug. 20, 1996). Thus, OGE is again increasing the nonsponsor
gift ceiling to match the further increase in the gifts and travel
reimbursements reporting thresholds described above. The nonsponsor
gift ceiling was last raised May 2017. See 82 FR 22735 (May 18, 2017).
The other requirements for acceptance of such nonsponsor gifts,
including an agency interest determination and expected attendance by
more than 100 persons, remain unchanged.
II. Matters of Regulatory Procedure
Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), as Director of the Office of
Government Ethics, I find that good cause exists for waiving the
general notice of proposed rulemaking and public comment procedures as
to these technical amendments. The notice and comment procedures are
being waived because these amendments concern matters of agency
organization, procedure and practice. It is also in the public interest
that the accurate and up-to-date information be contained in the
affected sections of OGE's regulations as soon as possible. The
increase in the reporting thresholds for gifts and reimbursements is
based on a statutory formula and lessens the reporting burden.
Therefore,
[[Page 36716]]
that regulatory revision is retroactively applicable as of January 1,
2020, when the change became effective under the Ethics Act.
Regulatory Flexibility Act
As the Director of the Office of Government Ethics, I certify under
the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final
rule would not have a significant economic impact on a substantial
number of small entities because it primarily affects current Federal
executive branch employees.
Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply
because this regulation does not contain information collection
requirements that require approval of the Office of Management and
Budget.
Unfunded Mandates Reform Act
For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
chapter 5, subchapter II), this final rule would not significantly or
uniquely affect small governments and will not result in increased
expenditures by State, local, and tribal governments, in the aggregate,
or by the private sector, of $100 million or more (as adjusted for
inflation) in any one year.
Congressional Review Act
The Office of Government Ethics has determined that this amendatory
rulemaking is a nonmajor rule under the Congressional Review Act (5
U.S.C. chapter 8) and will submit a report thereon to the U.S. Senate,
House of Representatives and Government Accountability Office in
accordance with that law at the same time this rulemaking document is
sent to the Office of the Federal Register for publication in the
Federal Register.
Executive Order 13563 and Executive Order 12866
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.
In promulgating this rulemaking, OGE has adhered to the regulatory
philosophy and the applicable principles of regulation set forth in
Executive Orders 12866 and 13563. The rule has not been reviewed by the
Office of Management and Budget because it is not a significant
regulatory action for the purposes of Executive Order 12866.
Executive Order 12988
As Director of the Office of Government Ethics, I have reviewed
this rule in light of section 3 of Executive Order 12988, Civil Justice
Reform, and certify that it meets the applicable standards provided
therein.
List of Subjects
5 CFR Part 2634
Certificates of divestiture, Conflict of interests, Government
employees, Penalties, Reporting and recordkeeping requirements, Trusts
and trustees.
5 CFR Part 2635
Conflict of interests, Executive branch standards of ethical
conduct, Government employees.
Approved: May 19, 2020.
Emory Rounds,
Director, U.S. Office of Government Ethics.
For the reasons set forth in the preamble, the U.S. Office of
Government Ethics is amending 5 CFR parts 2634 and 2635 as follows:
PART 2634--EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS,
AND CERTIFICATES OF DIVESTITURE
0
1. The authority citation for part 2634 continues to read as follows:
Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 26
U.S.C. 1043; Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note
(Federal Civil Penalties Inflation Adjustment Act of 1990), as
amended by Sec. 31001, Pub. L. 104-134, 110 Stat. 1321 (Debt
Collection Improvement Act of 1996) and Sec. 701, Pub. L. 114-74
(Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as
modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306.
0
2. Amend Sec. 2634.304 as follows:
0
a. Revise the Note to paragraph (a);
0
b. In paragraphs (a) and (b), remove the dollar amount ``$390'' and add
in its place ``$415'' wherever it appears;
0
c. In example 1 following paragraph (d), remove the dollar amount
``$220'' following ``Gift 1-Print'' and add in its place ``$240'' and
remove the dollar amount ``$390'' in the sentence following ``Gift 3''
and add in its place ``$415'';
0
d. In paragraph (d) and examples 1 and 2, remove the dollar amount
``$156'' and add in its place ``$166'' wherever it appears; and
0
e. In examples 2 and 3 following paragraph (d), remove the year
``2017'' and add in its place ``2020''.
The revision reads as follows:
Sec. 2634.304 Gifts and reimbursements.
(a) * * *
Note to paragraph (a): Under sections 102(a)(2)(A) and (B) of the
Ethics in Government Act, the reporting thresholds for gifts,
reimbursements, and travel expenses are tied to the dollar amount for
the ``minimal value'' threshold for foreign gifts established by the
Foreign Gifts and Decoration Act, 5 U.S.C. 7342(a)(5). The General
Services Administration (GSA), in consultation with the Secretary of
State, redefines the value every 3 years. In 2020, the amount was set
at $415. In subsection (d), the Office of Government Ethics sets the
aggregation exception amount and redefines the value every 3 years. In
2020, the amount was set at $166. The Office of Government Ethics will
update this part in 2023 and every three years thereafter to reflect
the new amounts.
* * * * *
0
3. Amend Sec. 2634.907 as follows:
0
a. In paragraph (g)(1), remove the dollar amount of ``$390'' and add in
its place ``$415'';
0
b. In paragraph (g)(2) introductory text, remove the dollar amount
``$156'' and add in its place ``$166'';
0
c. Revise the Note to paragraph (g)(2);
0
d. In the last sentence of the example following paragraph (g)(5),
remove the dollar amount of ``$390'' and add in its place ``$415'' and
remove the dollar amount ``$156'' and add in its place ``$166''.
The revision reads as follows:
Sec. 2634.907 Report contents.
* * * * *
(g) * * *
(2) * * *
Note to paragraph (g)(2): The Office of Government Ethics sets
these amounts every 3 years using the same disclosure thresholds as
those for public financial disclosure filers. In 2020, the reporting
thresholds were set at $415 and the aggregation threshold was set at
$166. The Office of Government Ethics will update this part in 2023 and
every three years thereafter to reflect the new amount.
* * * * *
PART 2635--STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE
EXECUTIVE BRANCH
0
4. The authority citation for part 2635 continues to read as follows:
Authority: 5 U.S.C. 7301, 7351, 7353; 5 U.S.C. App. (Ethics in
Government Act of
[[Page 36717]]
1978); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as
modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306.
Sec. 2635.204 [Amended]
0
5. In Sec. 2635.204, in paragraph (g)(3)(iv) and examples 1 and 4
following paragraph (g)(6), remove the dollar amount ``$390'' and add
in its place ``$415'' wherever it occurs.
[FR Doc. 2020-12357 Filed 6-17-20; 8:45 am]
BILLING CODE 6345-03-P
