Post-Employment Conflict of Interest Restrictions; Departmental Component Designations, 17691-17692 [2021-06971]
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17691
Rules and Regulations
Federal Register
Vol. 86, No. 64
Tuesday, April 6, 2021
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.
OFFICE OF GOVERNMENT ETHICS
5 CFR Part 2641
RIN 3209–AA58
Post-Employment Conflict of Interest
Restrictions; Departmental Component
Designations
Office of Government Ethics.
Final rule.
AGENCY:
ACTION:
The U.S. Office of
Government Ethics (OGE) is issuing this
final rule to revise the component
designations of one agency for purposes
of the one-year post-employment
conflict of interest restriction for senior
employees. Specifically, based on the
recommendation of the Department of
Defense, OGE is designating one new
component to its regulations.
DATES: This rule is effective April 6,
2021.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Kimberly L. Sikora Panza, Associate
Counsel, Office of Government Ethics,
Suite 500, 1201 New York Avenue NW,
Washington, DC 20005–3917;
Telephone: (202) 482–9300; TTY: (800)
877–8339.
SUPPLEMENTARY INFORMATION:
khammond on DSKJM1Z7X2PROD with RULES
I. Background
The Director of OGE (Director) is
authorized by 18 U.S.C. 207(h) to
designate distinct and separate
departmental or agency components in
the executive branch for purposes of 18
U.S.C. 207(c), the one-year postemployment conflict of interest
restriction for senior employees. Under
18 U.S.C. 207(h)(2), component
designations do not apply to persons
employed at a rate of pay specified in
or fixed according to subchapter II of 5
U.S.C. chapter 53 (the Executive
Schedule). Component designations are
listed in appendix B to 5 CFR part 2641.
The representational bar of 18 U.S.C.
207(c) usually extends to the whole of
any department or agency in which a
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17:01 Apr 05, 2021
Jkt 253001
former senior employee served in any
capacity during the year prior to
termination from a senior employee
position. However, 18 U.S.C. 207(h)
provides that whenever the Director
determines that an agency or bureau
within a department or agency in the
executive branch exercises functions
which are distinct and separate from the
remaining functions of the department
or agency and there exists no potential
for use of undue influence or unfair
advantage based on past Government
service, the Director shall by rule
designate such agency or bureau as a
separate component of that department
or agency.
Pursuant to the procedures prescribed
in 5 CFR 2641.302(e), the Department of
Defense (DoD) forwarded a written
request to OGE to amend its listing in
appendix B to part 2641, and on
December 1, 2020, OGE published a
proposed rule in the Federal Register
that proposed to designate the Defense
Advanced Research Projects Agency
(DARPA) as a separate component of
DoD for purposes of 18 U.S.C. 207(c).
The proposed rule provided a 30-day
comment period, which ended on
December 31, 2020. OGE did not receive
any comments. The rationale for the
rule, which OGE is now adopting as
final, is explained in the proposed rule
preamble at 85 FR 77014.
For the reasons stated in the preamble
to the proposed rule, OGE is granting
the request of the DoD to amend its
listing to designate DARPA as a distinct
and separate component of the agency
for purposes of 18 U.S.C. 207(c). As
indicated in 5 CFR 2641.302(f), a
designation ‘‘shall be effective on the
date the rule creating the designation is
published in the Federal Register and
shall be effective as to individuals who
terminated senior service either before,
on or after that date.’’ Initial
designations in appendix B to part 2641
were effective as of January 1, 1991. The
effective date of subsequent
designations is indicated by means of
parenthetical entries in appendix B. The
new component designation made in
this rule for DARPA is effective on the
date the final rule is published in the
Federal Register.
Regulatory Flexibility Act (5 U.S.C.
chapter 6) that this final rule will not
have a significant economic impact on
a substantial number of small entities
because it affects only Federal
departments and agencies and current
and former Federal employees.
Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. chapter 35) does not apply to this
final rule because it does not contain
information collection requirements that
require the 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 25, subchapter II), this final rule
will 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 final rule is not a major rule as
defined in 5 U.S.C. chapter 8,
Congressional Review of Agency
Rulemaking.
II. Matters of Regulatory Procedure
Executive Orders 13563 and 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 final
rule, the Office of Government Ethics
has adhered to the regulatory
philosophy and the applicable
principles of regulation set forth in
Executive Orders 12866 and 13563. This
rule has not been reviewed by the Office
of Management and Budget under
Executive Order 12866 because it is not
a ‘‘significant’’ regulatory action for the
purposes of that order.
Regulatory Flexibility Act
As Director of the Office of
Government Ethics, I certify under the
Executive Order 12988
As Director of the Office of
Government Ethics, I have reviewed this
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06APR1
17692
Federal Register / Vol. 86, No. 64 / Tuesday, April 6, 2021 / Rules and Regulations
final rule in light of section 3 of
Executive Order 12988, Civil Justice
Reform, and certify that it meets the
applicable standards provided therein.
BUREAU OF CONSUMER FINANCIAL
PROTECTION
List of Subjects in 5 CFR Part 2641
Rescission of Statement of Policy on
Supervisory and Enforcement
Practices Regarding Quarterly
Reporting Under the Home Mortgage
Disclosure Act
Conflict of interests, Government
employees.
Approved: March 31, 2021.
Emory Rounds,
Director, Office of Government Ethics.
PART 2641—POST-EMPLOYMENT
CONFLICT OF INTEREST
RESTRICTIONS
1. The authority citation for part 2641
continues to read as follows:
■
Authority: 5 U.S.C. app. (Ethics in
Government Act of 1978); 18 U.S.C. 207; 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.
2. Amend appendix B to part 2641 by
revising the listing for the Department of
Defense to read as follows:
■
Appendix B to Part 2641—Agency
Components for Purposes of 18 U.S.C.
207(c)
*
*
*
*
Parent: Department of Defense
Components:
Defense Advanced Research Projects
Agency (DARPA) (effective April 6, 2021).
Department of the Air Force.
Department of the Army.
Department of the Navy.
Defense Information Systems Agency.
Defense Intelligence Agency.
Defense Logistics Agency.
Defense Threat Reduction Agency
(effective February 5, 1999).
National Geospatial-Intelligence Agency
(formerly National Imagery and Mapping
Agency) (effective May 16, 1997).
National Reconnaissance Office (effective
January 30, 2003).
National Security Agency.
*
*
*
*
*
[FR Doc. 2021–06971 Filed 4–5–21; 8:45 am]
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BILLING CODE 6345–03–P
Bureau of Consumer Financial
Protection.
ACTION: Rescission of statement of
policy.
AGENCY:
Accordingly, for the reasons set forth
in the preamble, the Office of
Government Ethics is amending 5 CFR
part 2641 as set forth below:
*
12 CFR Part 1003
The Bureau of Consumer
Financial Protection (Bureau) is
rescinding the Statement on
Supervisory and Enforcement Practices
Regarding Quarterly Reporting Under
the Home Mortgage Disclosure Act.
DATES: This rescission is applicable on
April 1, 2021.
FOR FURTHER INFORMATION CONTACT:
Zixta Q. Martinez, Division of
Supervision, Enforcement, and Fair
Lending, at (202) 435–7204. If you
require this document in an alternative
electronic format, please contact CFPB_
Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION: On March
26, 2020, the Bureau issued a statement
entitled, ‘‘Statement on Supervisory and
Enforcement Practices Regarding
Quarterly Reporting Under the Home
Mortgage Disclosure Act’’ (Statement),
regarding the Bureau’s exercise of its
supervisory and enforcement discretion
in connection to the Home Mortgage
Disclosure Act (HMDA), 12 U.S.C. 2801
through 2810, and Regulation C, 12 CFR
1003.5(a)(1)(ii).1 Specifically, the
Statement provided that until further
notice, the Bureau does not intend to
cite in an examination or initiate an
enforcement action against any
institution for failure to report its
HMDA data quarterly, as required under
Regulation C. Under Regulation C, 12
CFR 1003.5(a)(1)(ii), financial
institutions that report for the preceding
calendar year at least 60,000 covered
loans and applications (excluding
purchased loans) must report their
HMDA data quarterly (except for the
fourth quarter) in addition to annually.
The Bureau hereby rescinds, as of
April 1, 2021, the Statement and
provides guidance on how entities
subject to Regulation C, 12 CFR
1003.5(a)(1)(ii) should now meet this
obligation.
The Statement expressed the Bureau’s
recognition of the impact of the COVID–
19 pandemic on consumers and the
SUMMARY:
1 https://files.consumerfinance.gov/f/documents/
cfpb_hmda-statement_covid-19_2020-03.pdf.
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operations of many financial
institutions, the vital role played by
mortgage lenders in ensuring that
consumers have access to credit, as well
as the critical importance of this access
in light of the dramatic effects of the
pandemic on the finances of consumers.
The Bureau therefore believed it was
necessary to provide financial
institutions with flexibility and reduce
their administrative burden to allow
them to focus their attention on making
sure consumers have access to credit.
The Bureau has concluded that this
tradeoff is no longer necessary. With
regard to the quarterly filing of HMDA
data, the Bureau believes that
companies have had sufficient time to
adapt to the pandemic and should now
be able to respond to the credit needs
of consumers while still complying with
the quarterly data submission
requirement under Regulation C without
the flexibility afforded under the
Statement. The Statement noted that
entities should continue collecting and
recording HMDA data in anticipation of
making annual data submissions and
that entities could continue to make
quarterly HMDA submissions
notwithstanding the flexibility extended
under the Statement. The Bureau notes
that approximately half of the financial
institutions subject to the requirement
are now filing their data, choosing not
to take advantage of the flexibility
provided by the Statement. In addition,
because the Statement did not create
binding legal obligations on the Bureau
or create or confer any substantive rights
on external parties, it did not create any
reasonable reliance interests for
industry participants. The Bureau never
intended the Statement to be
permanent, and expressly noted that at
a later date, the Bureau would provide
information as to how and when it
expects financial institutions subject to
the requirement would resume quarterly
HMDA data submissions. This Policy
Statement provides that guidance.
The Bureau hereby rescinds, as of
April 1, 2021, the Statement and
instructs all financial institutions
required to file quarterly to do so
beginning with their 2021 first quarter
data, due on or before May 31, 2021, for
all covered loans and applications with
a final action taken date between
January 1 and March 31, 2021. The
Bureau does not intend to cite in an
examination or initiate an enforcement
action against any entity that did not
make the quarterly filing for data
collected in 2020.
The Bureau reminds HMDA reporters
of the existing safe harbor in Regulation
C, 12 CFR 1003.6(c)(2), that applies to
any data financial institutions report on
E:\FR\FM\06APR1.SGM
06APR1
Agencies
[Federal Register Volume 86, Number 64 (Tuesday, April 6, 2021)]
[Rules and Regulations]
[Pages 17691-17692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06971]
========================================================================
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.
========================================================================
Federal Register / Vol. 86, No. 64 / Tuesday, April 6, 2021 / Rules
and Regulations
[[Page 17691]]
OFFICE OF GOVERNMENT ETHICS
5 CFR Part 2641
RIN 3209-AA58
Post-Employment Conflict of Interest Restrictions; Departmental
Component Designations
AGENCY: Office of Government Ethics.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Office of Government Ethics (OGE) is issuing this
final rule to revise the component designations of one agency for
purposes of the one-year post-employment conflict of interest
restriction for senior employees. Specifically, based on the
recommendation of the Department of Defense, OGE is designating one new
component to its regulations.
DATES: This rule is effective April 6, 2021.
FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate
Counsel, Office of Government Ethics, Suite 500, 1201 New York Avenue
NW, Washington, DC 20005-3917; Telephone: (202) 482-9300; TTY: (800)
877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Director of OGE (Director) is authorized by 18 U.S.C. 207(h) to
designate distinct and separate departmental or agency components in
the executive branch for purposes of 18 U.S.C. 207(c), the one-year
post-employment conflict of interest restriction for senior employees.
Under 18 U.S.C. 207(h)(2), component designations do not apply to
persons employed at a rate of pay specified in or fixed according to
subchapter II of 5 U.S.C. chapter 53 (the Executive Schedule).
Component designations are listed in appendix B to 5 CFR part 2641.
The representational bar of 18 U.S.C. 207(c) usually extends to the
whole of any department or agency in which a former senior employee
served in any capacity during the year prior to termination from a
senior employee position. However, 18 U.S.C. 207(h) provides that
whenever the Director determines that an agency or bureau within a
department or agency in the executive branch exercises functions which
are distinct and separate from the remaining functions of the
department or agency and there exists no potential for use of undue
influence or unfair advantage based on past Government service, the
Director shall by rule designate such agency or bureau as a separate
component of that department or agency.
Pursuant to the procedures prescribed in 5 CFR 2641.302(e), the
Department of Defense (DoD) forwarded a written request to OGE to amend
its listing in appendix B to part 2641, and on December 1, 2020, OGE
published a proposed rule in the Federal Register that proposed to
designate the Defense Advanced Research Projects Agency (DARPA) as a
separate component of DoD for purposes of 18 U.S.C. 207(c). The
proposed rule provided a 30-day comment period, which ended on December
31, 2020. OGE did not receive any comments. The rationale for the rule,
which OGE is now adopting as final, is explained in the proposed rule
preamble at 85 FR 77014.
For the reasons stated in the preamble to the proposed rule, OGE is
granting the request of the DoD to amend its listing to designate DARPA
as a distinct and separate component of the agency for purposes of 18
U.S.C. 207(c). As indicated in 5 CFR 2641.302(f), a designation ``shall
be effective on the date the rule creating the designation is published
in the Federal Register and shall be effective as to individuals who
terminated senior service either before, on or after that date.''
Initial designations in appendix B to part 2641 were effective as of
January 1, 1991. The effective date of subsequent designations is
indicated by means of parenthetical entries in appendix B. The new
component designation made in this rule for DARPA is effective on the
date the final rule is published in the Federal Register.
II. Matters of Regulatory Procedure
Regulatory Flexibility Act
As Director of the Office of Government Ethics, I certify under the
Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final rule
will not have a significant economic impact on a substantial number of
small entities because it affects only Federal departments and agencies
and current and former Federal employees.
Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply
to this final rule because it does not contain information collection
requirements that require the 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 25, subchapter II), this final rule will 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 final rule is not a major rule as defined in 5 U.S.C. chapter
8, Congressional Review of Agency Rulemaking.
Executive Orders 13563 and 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 final rule, the Office of Government Ethics has
adhered to the regulatory philosophy and the applicable principles of
regulation set forth in Executive Orders 12866 and 13563. This rule has
not been reviewed by the Office of Management and Budget under
Executive Order 12866 because it is not a ``significant'' regulatory
action for the purposes of that order.
Executive Order 12988
As Director of the Office of Government Ethics, I have reviewed
this
[[Page 17692]]
final 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 in 5 CFR Part 2641
Conflict of interests, Government employees.
Approved: March 31, 2021.
Emory Rounds,
Director, Office of Government Ethics.
Accordingly, for the reasons set forth in the preamble, the Office
of Government Ethics is amending 5 CFR part 2641 as set forth below:
PART 2641--POST-EMPLOYMENT CONFLICT OF INTEREST RESTRICTIONS
0
1. The authority citation for part 2641 continues to read as follows:
Authority: 5 U.S.C. app. (Ethics in Government Act of 1978); 18
U.S.C. 207; 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 appendix B to part 2641 by revising the listing for the
Department of Defense to read as follows:
Appendix B to Part 2641--Agency Components for Purposes of 18 U.S.C.
207(c)
* * * * *
Parent: Department of Defense
Components:
Defense Advanced Research Projects Agency (DARPA) (effective
April 6, 2021).
Department of the Air Force.
Department of the Army.
Department of the Navy.
Defense Information Systems Agency.
Defense Intelligence Agency.
Defense Logistics Agency.
Defense Threat Reduction Agency (effective February 5, 1999).
National Geospatial-Intelligence Agency (formerly National
Imagery and Mapping Agency) (effective May 16, 1997).
National Reconnaissance Office (effective January 30, 2003).
National Security Agency.
* * * * *
[FR Doc. 2021-06971 Filed 4-5-21; 8:45 am]
BILLING CODE 6345-03-P