Agency Information Collection Activities; Proposed Collection; Comment Request for Modified Qualified Trust Model Certificates and Model Trust Documents, 67743-67745 [2019-26605]

Agencies

• Office of Government Ethics

[Federal Register Volume 84, Number 238 (Wednesday, December 11, 2019)]
[Notices]
[Pages 67743-67745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26605]


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OFFICE OF GOVERNMENT ETHICS


Agency Information Collection Activities; Proposed Collection; 
Comment Request for Modified Qualified Trust Model Certificates and 
Model Trust Documents

AGENCY: Office of Government Ethics (OGE).

ACTION: Notice of request for agency and public comments.

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SUMMARY: The U.S. Office of Government Ethics (OGE) is publishing this 
second round notice to request comment regarding its intent to submit 
modified versions of the 12 OGE model certificates and model documents 
for qualified trusts to the Office of Management and Budget (OMB) for 
review and approval under the Paperwork Reduction Act of 1995.

DATES: Written comments by the public and the agencies on this proposed 
extension are invited and must be received on or before January 10, 
2020.

ADDRESSES: You may submit comments on this notice to the Office of 
Management and Budget, Attn: Desk Officer for OGE, via fax at 202-395-
6974 or email at [email protected].

FOR FURTHER INFORMATION CONTACT: Jennifer Matis at the U.S. Office of 
Government Ethics; telephone: 202-482-9216; TTY: 800-877-8339; FAX: 
202-482-9237; Email: [email protected]. Copies of the model documents as 
currently approved are available on OGE's website, www.oge.gov. 
Electronic copies of these documents may also be obtained, without 
charge, by contacting Ms. Matis.

SUPPLEMENTARY INFORMATION: 
    Title: Executive Branch Qualified Trust Documents.
    OMB Control Number: 3209-0007.
    Type of Information Collection: Revision of a currently approved 
collection.
    Type of Review Request: Regular.
    Respondents: Any current or prospective executive branch officials 
who seek to establish or have established a qualified blind or 
diversified trust under the Ethics in Government Act of 1978 as a means 
to avoid conflicts of interest while in office.
    Estimated Average Annual Number of Respondents: 2.
    Total Estimated Time per Response: 20 minutes to 100 hours (see 
table below for detailed explanation).
    Estimated Average Total Annual Burden: 120 hours.
    Abstract: OGE is the supervising ethics office for the executive 
branch of

[[Page 67744]]

the Federal Government under the Ethics in Government Act of 1978 
(EIGA). Accordingly, OGE administers the qualified trust program for 
the executive branch. Presidential nominees to executive branch 
positions subject to Senate confirmation and any other executive branch 
officials may seek OGE approval for EIGA-qualified blind or diversified 
trusts as one means to be used to avoid conflicts of interest. The 
requirements for EIGA-qualified blind and diversified trusts are set 
forth in section 102(f) of the Ethics in Government Act, 5 U.S.C. app. 
Sec.  102(f), and OGE's implementing financial disclosure regulations 
at subpart D of 5 CFR part 2634.
    In order to ensure that all applicable requirements are met, OGE is 
the sponsoring agency for 12 model certificates and model trust 
documents for qualified blind and diversified trusts. See 5 CFR 
2634.402(e)(3), 2634.402(f)(3), 2634.404(e)-(g), 2634.405(d)(2), 
2634.407(a); 2634.408(b)(1)-(3), 2634.408(d)(4), 2634.409, and 
2634.414. The various model certificates and model trust documents are 
utilized by settlors, trustees, and other fiduciaries in establishing 
and administering these qualified trusts. OGE plans to submit these 
model certificates and model trust documents (described in detail in 
the table below) to OMB for renewed approval pursuant to the Paperwork 
Reduction Act of 1995, 44 U.S.C. chapter 35.
    The 12 model documents, along with their burden estimates, are as 
follows:

------------------------------------------------------------------------
                                                     Estimated burden
------------------------------------------------------------------------
                     Model qualified trust documents
------------------------------------------------------------------------
(A) Blind Trust Communications (Expedited         20 minutes per
 Procedure for Securing Approval of Proposed       communication.
 Communications).
(B) Model Qualified Blind Trust Provisions......  100 hours per model.
(C) Model Qualified Diversified Trust Provisions  100 hours per model.
(D) Model Qualified Diversified Trust Provisions  100 hours per model.
 (For Use in the Case of Multiple Fiduciaries).
(E) Model Qualified Blind Trust Provisions (For   100 hours per model.
 Use in the Case of an Irrevocable Pre-Existing
 Trust).
(F) Hybrid Version of the Model Qualified         100 hours per model.
 Diversified Trust Provisions.
(G) Model Qualified Blind Trust Provisions (For   100 hours per model.
 Use in the Case of Multiple Fiduciaries).
(H) Model Qualified Diversified Trust Provisions  100 hours per model.
 (For Use in the Case of an Irrevocable Pre-
 Existing Trust).
(I) Model Confidentiality Agreement Provisions    2 hours per agreement.
 (For Use in the Case of a Privately Owned
 Business).
(J) Model Confidentiality Agreement Provisions    2 hours per agreement.
 (For Use in the Case of Investment Management
 Activities).
------------------------------------------------------------------------
                        Model trust certificates
------------------------------------------------------------------------
(K) Certificate of Independence.................  20 minutes per
                                                   certificate.
(L) Certificate of Compliance...................  20 minutes per
                                                   certificate.
------------------------------------------------------------------------

    These estimates are based on the amount of time imposed on 
professional trust administrators or private representatives. OGE notes 
that only one set of the various model trust provisions (items (B) 
through (H)) will be prepared for a single qualified trust, and only 
prior to the establishment of that qualified trust. Likewise, other 
model documents listed above are used in connection with establishing 
the qualified trust (items (I), (J), and (K)). The remaining model 
documents are used after the trust's creation (items (A) and (L)). 
Accordingly, OGE notes that the majority of the time burden for any 
given trust is imposed during the creation of the trust.
    At the present time, there are no active qualified trusts in the 
executive branch. However, OGE anticipates possible limited use of 
these model documents during the forthcoming three-year period. OGE 
estimates that there may be an average of one individual per year who 
initiates a qualified trust using these model documents during calendar 
years 2020 through 2022. OGE has accordingly estimated the average 
annual number of respondents to be two, which represents one respondent 
establishing a qualified trust and one respondent maintaining a 
previously established qualified trust. Based on the above, OGE 
estimates an average annual time burden during the next three years of 
120 hours. Using an estimated rate of $300 per hour for the services of 
a professional trust administrator or private representative, the 
estimated annual cost burden is $36,000.
    Under OMB's implementing regulations for the Paperwork Reduction 
Act, any recordkeeping, reporting, or disclosure requirement contained 
in a rule of general applicability is deemed to involve ten or more 
persons. See 5 CFR 1320.3(c)(4)(i). Therefore, OGE intends to submit, 
after this first round notice and comment period, all 12 qualified 
trust model certificates and model documents described above (all of 
which are included under OMB paperwork control number 3209-0007) for a 
three-year extension of approval. At that time, OGE will publish a 
second notice in the Federal Register to inform the public and the 
agencies.
    OGE is committed to making ethics records publicly available to the 
extent possible. The communications documents and the confidentiality 
agreements (items (A), (I) and (J) on the table above), once completed, 
will not be available to the public because they contain sensitive, 
confidential information. The other completed certificates and 
documents (except for any trust provisions that relate to the 
testamentary disposition of trust assets) are retained and made 
publicly available based upon a proper request under section 105 of the 
EIGA until the periods for retention of all other reports (usually the 
OGE Form 278 Public Financial Disclosure Reports) of the individual 
establishing the trust have lapsed (generally six years after the 
filing of the last report). See 5 U.S.C. app. 105; 5 CFR 
2634.603(g)(2). The information collected with these model trust 
certificates and model trust documents is part of the OGE/GOVT-1 
Governmentwide Privacy Act system of records.
    In seeking an extension of approval, OGE is proposing several 
nonsubstantive changes to the 12 qualified trust certificates and model 
documents.
    First, OGE proposes removing all references to Appendices A and B 
of 5

[[Page 67745]]

CFR part 2634 because these references are no longer applicable. The 
appendices, which contained the model Certificate of Independence and 
model Certificate of Compliance (items (K) and (L), respectively, on 
the table above), were eliminated as part of recent changes made by OGE 
to the Executive Branch Financial Disclosure, Qualified Trusts, and 
Certificates of Divestiture regulation at 5 CFR part 2634. The changes 
went into effect on January 1, 2019. The information previously found 
in Appendix B is available on www.oge.gov.
    Second, OGE proposes removing all references to facsimile as the 
best means of communication and replacing it with email.
    Third, with regard to the model communications (item (A) in the 
table above), OGE proposes to update the dates in the sample documents 
to make them more contemporary.
    Fourth, OGE proposes to add one sentence to the Privacy Act 
statements to better notify users of the consequences of not providing 
the requested information.
    Fifth, OGE proposes to make a few minor formatting corrections and 
to fix a typographical error in the Privacy Act statements.
    Sixth, OGE proposes to update the Privacy Act statement in 
accordance with recent changes made to the OGE/GOVT-1 system of 
records, covering Executive Branch Personnel Public Financial 
Disclosure Reports and Other Name-Retrieved Ethics Program Records. The 
changes were effective on November 8, 2019.
    On September 25, 2019, OGE published a first round notice of its 
intent to request approval for the modified model trust certificates 
and trust documents under the Paperwork Reduction Act. See 84 FR 50449. 
OGE received no responses to that notice.
    Request for Comments: Agency and public comment is again invited 
specifically on the need for and practical utility of this information 
collection, the accuracy of OGE's burden estimate, the enhancement of 
quality, utility, and clarity of the information collected, and the 
minimization of burden (including the use of information technology). 
Comments received in response to this notice will be summarized for, 
and may be included with, the OGE request for extension of OMB 
approval. The comments will also become a matter of public record.

    Approved: December 5, 2019.
Emory Rounds,
Director, Office of Government Ethics.
[FR Doc. 2019-26605 Filed 12-10-19; 8:45 am]
 BILLING CODE 6345-03-P