Practice and procedure: employment restrictions,

[Federal Register: March 29, 1999 (Volume 64, Number 59)]

[Rules and Regulations]

[Page 14829-14830]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr29mr99-10]

FEDERAL TRADE COMMISSION

16 CFR Part 4

Appearances Before the Commission; Restrictions As To Former Members and Employees

AGENCY: Federal Trade Commission (FTC).

ACTION: Final rule.

SUMMARY: The Commission is amending its rule governing the appearance of former members and employees, Rule 4.1(b), to more closely track the post-employment restrictions of the criminal conflict of interest statute, 18 U.S.C. 207.

EFFECTIVE DATE: These amendments are effective March 29, 1999.

FOR FURTHER INFORMATION CONTACT: Ira S. Kaye, 202-326-2426, or Shira Pavis Minton, 202-326-2479, Attorneys, Office of the General Counsel, FTC, 600 Pennsylvania Avenue, NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION: The Commission is revising paragraph (b) of Commission Rule 4.1, 16 CFR 4.1, which currently prohibits a former employee's participation, ``behind-the-scenes,'' in a Commission matter that had been pending under his or her official responsibility before departing the Commission, provided that the former employee had not participated in the matter personally and substantially (which includes actively supervising it), and that nonpublic documents or information about the matter had not, and would not have been likely to have, come to the former employee's attention. Under these circumstances, the rule, like 18 U.S.C. 207, will permit a former employee to render in- house assistance in connection with the representation in question (see 5 CFR 2637.201(b)(6)). The rule, however, will continue to prohibit making an appearance before, or communication to, a member or employee of the Commission with the intent to influence that person in connection with the matter.

The Commission will continue to monitor closely the post-employment activites of its former employees. The Clearance Rule will continue to require them to file clearance requests before participating in matters that were pending in the Commission before they departed, even if they had not participated in those matters, and even if they plan to render only behind-the-scenes assistance.

The Commission also is deleting, from two paragraphs, language that it had added to the rule as part of its 1998 amendments. 63 FR 15758 (April 1, 1998). First, the Commission is deleting the last sentence of paragraph (b)(5)(vii) of the Rule to clarify that, although the rule generally allows former employees to participate in rulemaking proceedings, a former ``senior employee'' may not communicate with or appear before a Commission employee regarding any matter, including a rulemaking proceeding, within the first year after leaving the Commission. Second, the Commission is deleting from paragraph (b)(1)(iii) the words ``and the employee left the Commission within the previous three years[.]'' The amendment restores the Commission's authority to prohibit participation by a former employee who left more than three years earlier, where nonpublic documents or information that would still convey a present advantage would likely have come to her attention.

These rule amendments relate solely to agency practice, and, thus, are not subject to the notice and comment requirements of the Administrative Procedure Act, 5 U.S.C. 553(a)(2), or to the requirements of the Regulatory Flexibility Act, 5 U.S.C. 601(2).

[[Page 14830]]

The submissions required by the amended rule do not generally involve the ``collection of information'' as that term is defined by the Paperwork Reduction Act (``PRA''), 44 U.S.C. 3501-3520. Submission of a request for clearance to participate or a screening affidavit is ordinarily required only during the conduct of an administrative action or investigation involving a specific individual or entity. Such submissions are exempt from the coverage of the PRA. 5 CFR 1320.4(a)(2). To the limited extent that the rule could require a submission outside the context of an investigation or action involving a specific party, the information collection aspects of the rule have been cleared by the Office of Management and Budget and assigned OMB clearance no.3084-0047.

List of Subjects in 16 CFR Part 4

Administrative practice and procedure.

For the reasons set forth in the preamble, the Federal Trade Commission amends Title 16, chapter I, subchapter A, of the Code of Federal Regulations as follows:

PART 4--MISCELLANEOUS RULES

1. The authority citation for part 4 continues to read as follows:

   Authority: Sec. 6, 38 Stat. 721; 15 U.S.C. 46.

   Sec. 4.1 [Amended]

2. Section 4.1(b)(1) introductory text is amended by adding, between the words ``under'' and ``paragraph (b)(1)(iv),'' the words ``paragraph (b)(1)(ii) or''.

3. Section 4.1(b)(1)(iii) is amended by removing the words ``and the employee left the Commission within the previous three years''.

4. Section 4.1(b)(5)(vii) is amended by removing the final sentence.

   By direction of the Commission. Donald S. Clark, Secretary.

   [FR Doc. 99-7519Filed3-26-99; 8:45 am]

   BILLING CODE 6750-01-M