Unknown. Final rule; clarifying amendment

4,524 words·~21 min read·/register/2002/05/31/02-13734

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2002-05-31.xml --- 67 105 Friday, May 31, 2002 Contents AID Agency for International Development NOTICES Agency information collection activities: Proposed collection; comment request, 38062 02-13644 Agriculture Agriculture Department See Forest Service Air Force Air Force Department NOTICES Privacy Act: Systems of records, 38068-38069 02-13593 Army Army Department See Engineers Corps NOTICES Meetings: Science Board, 38070 02-13640 02-13641 Patent licenses; non-exclusive, exclusive, or partially exclusive:

Detection of antibodies to squalene in serum, 38070 02-13686 Privacy Act: Systems of records, 38070-38072 02-13594 Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Centers Centers for Disease Control and Prevention NOTICES Grants and cooperative agreements; availability, etc.: Duchenne and Becker Muscular Dystrophy and other single gene disorders; surveillance and epidemiologic research, 38115-38118 02-13632 Global AIDS Program, 38118-38120 02-13634 Uganda; voluntary counseling and testing services, and tuberculosis diagnosis, treatment, and prevention expansion, 38120-38123 02-13635 Violence Against Women, 38123-38126 02-13637 Meetings:

Advisory Committee to Director, 38126-38127 02-13642 National Institute for Occupational Safety and Health— Respiratory protective devices to protect emergency response workers against chemical, biological, radiological, and nuclear agents; standards, 38127-38128 02-13639 Scientific Counselors Board, 38127 02-13633 Centers Centers for Medicare & Medicaid Services NOTICES Medicare: Skilled nursing facilities; modification of beneficiary assessment requirements, 38128-38132 02-13613 Children Children and Families Administration NOTICES Grant and cooperative agreement awards:

Montana Child Care Resource and Referral Network, 38132 02-13628 Commerce Commerce Department See Foreign-Trade Zones Board See Industry and Security Bureau See National Oceanic and Atmospheric Administration NOTICES Agency information collection activities: Proposed collection; comment request, 38066-38067 02-13706 Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement list; additions and deletions, 38065-38066 02-13694 02-13695 Copyright Copyright Office, Library of Congress RULES Copyright office and procedures:

Registration and other service fees; changes, 38003-38006 02-13387 Defense Defense Department See Air Force Department See Army Department See Defense Logistics Agency See Engineers Corps RULES Acquisition regulations: Indian organizations and Indian-owned economic enterprises; utilization, 38022-38023 02-13360 Ocean transportation by U.S.-flag vessels, 38020-38022 02-13359 Subcontract commerciality determinations, 38023-38024 02-13358 PROPOSED RULES Acquisition regulations: Payment requirements; electronic submission and processing, 38057-38059 02-13532 Defense Defense Logistics Agency NOTICES Privacy Act:

Systems of records, 38072-38074 02-13595 Education Education Department NOTICES Grants and cooperative agreements; availability, etc.: Federal Pell Grant, Perkins Loan, Work-Study, Supplemental Educational Opportunity Grant, Family Education Loan, and William D. Ford Programs— Federal need analysis methodology for 2003-2004 award year, 38079-38083 02-13704 Employment Employment Standards Administration NOTICES Minimum wages for Federal and federally-assisted construction; general wage determination decisions, 38148-38149 02-13547 Energy Energy Department See Energy Information Administration See Federal Energy Regulatory Commission NOTICES Environmental statements; notice of intent:

Miamisburg, OH; Heat Source/Radioisotope Power System assembly and test operations; relocation to another site, 38083-38084 02-13648 Meetings: Environmental Management Site-Specific Advisory Board— Fernald Site, OH, 38085 02-13736 Paducah Gaseous Diffusion Plant, KY, 38084-38085 02-13735 Energy Energy Information Administration NOTICES Agency information collection activities: Submission for OMB review; comment request, 38085-38086 02-13649 Engineers Engineers Corps NOTICES Environmental statements; notice of intent:

Arkansas River Navigation Study, Phase II, AR and OK, 38074-38075 02-13684 Kenosha County, WI, et al.; Upper Des Plaines River and tributaries; flood control and ecosystem restoration measures, 38075 02-13685 Los Angeles County, CA; Marina del Rey and Ballona Creek sediment control management plan feasibility study, 38075-38076 02-13688 Oceanside, CA; San Diego Shoreline Feasibility Study, 38076-38077 02-13683 Palm Beach County, FL; Hillsboro Aquifer Storage and Recovery Pilot Project, 38077-38078 02-13687 St.

Lucie County, FL; Fort Pierce Shore Protection Project; Capron Shoal dredging, 38078-38079 02-13682 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States: Indiana, 38006-38009 02-13516 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States: Indiana, 38044 02-13517 NOTICES Confidential business information and data transfer, 38099-38100 02-13523 Environmental statements; availability, etc.:

Agency statements— Comment availability, 38101-38102 02-13691 Weekly receipts, 38100-38101 02-13690 EPA Dockets; electronic public docket and comment system; availability, 38102-38104 02-13521 Meetings: FIFRA Scientific Advisory Panel, 38104-38106 02-13522 Toxic and hazardous substances control: Acute exposure guideline levels— Priority chemicals for guideline development; second list, 38106-38113 02-13700 Water pollution control: Sole source aquifer determinations— La Cienega Valley Area Aquifer, NM; denied, 38113 02-13696 Water supply:

Public water supply supervision program— Mississippi, 38113-38114 02-13697 FAA Federal Aviation Administration RULES Airworthiness directives: Air Tractor, Inc., 37967-37975 02-13609 Boeing, 37975-37976 02-13607 Class E airspace, 37977 02-13710 NOTICES Agency information collection activities: Submission for OMB review; comment request, 38175-38176 02-13708 Airport noise compatibility program: Noise exposure maps— Little Rock National Airport, AR, 38176 02-13709 Passenger facility charges; applications, etc.:

Mobile Airport Authority, AL, et al., 38177-38179 02-13711 FCC Federal Communications Commission PROPOSED RULES Digital television stations; table of assignments: Montana, 38056-38057 02-13646 NOTICES Agency information collection activities: Proposed collection; comment request, 38114 02-13647 Federal Energy Federal Energy Regulatory Commission NOTICES Agency information collection activities: Proposed collection; comment request, 38086-38087 02-13663 Environmental statements; availability, etc.:

Idaho Power Co., 38094 02-13665 Millennium Pipeline Co., L.P., 38095-38096 02-13657 Environmental statements; notice of intent: Transcontinental Gas Pipe Line Corp., 38096-38098 02-13658 Hydroelectric applications, 38098-38099 02-13664 Meetings; Sunshine Act Correction, 38181 C2-13473 Practice and procedure: Off-the-record communications, 38099 02-13668 *Applications, hearings, determinations, etc.:* ANR Pipeline Co., 38087 02-13680 Destin Pipeline Co., L.L.C., 38087-38088 02-13672 Distrigas of Massachusetts LLC, 38088 02-13662 Dominion Transmission, Inc., 38088 02-13677 Drew River Mill, Inc., 38088 02-13666 Equitrans, L.P., et al., 38088-38089 02-13660 Kinder Morgan Interstate Gas Transmission LLC, 38089-38090 02-13671 Maritimes & Northeast Pipeline L.L.C., 38090 02-13679 Nicor Gas, 38090 02-13667 Norteno Pipeline Co., 38090 02-13678 Northern Natural Gas Co., 02-13669 02-13670 38091 02-13673 Sea Robin Pipeline Co., 38092 02-13675 SG Resources Mississippi, L.L.C., 38092-38093 02-13659 Stingray Pipeline Co., L.L.C., 38093-38094 02-13674 Tenaska Power Services Co., 38094 02-13661 Tuscarora Gas Transmission Co., 38094 02-13676 Federal Highway Federal Highway Administration NOTICES Environmental statements; availability, etc.:

Summit County, CO, 38179 02-12776 Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species: Critical habitat designations— Roswell springsnail, Koster's tyronia, etc., 38059-38060 02-13534 NOTICES Comprehensive conservation plans; availability, etc.: Stillwater National Wildlife Refuge Complex, NV, 38142-38144 02-13631 Food Food and Drug Administration RULES Human drugs and biological products: Evidence of effectiveness when human studies are not ethical or feasible, 37988-37998 02-13583 MISSING FOR:

Foreign-Trade Zones Board Foreign-Trade Zones Board NOTICES *Applications, hearings, determinations, etc.:* Nevada Taiyo America, Inc.; electronic chemicals manufacturing and warehousing facilities, 38067 02-13732 Forest Forest Service NOTICES Agency information collection activities: Proposed collection; comment request, 38062-38063 02-13692 Environmental statements; notice of intent: Idaho Panhandle National Forests, ID, 38063-38064 02-13643 Malheur National Forest, OR; cancellation, 38064 02-13638 Meetings:

Resource Advisory Committees— Central Idaho, 38064-38065 02-13554 Colville, 38065 02-13629 Siskiyou County, 38065 02-13636 Southwest Idaho, 38065 02-13645 Reports and guidance documents; availability, etc.: National Forest System lands conveyance to public school districts for educational purposes; interim directive, 38065 02-13693 GSA General Services Administration NOTICES Meetings: President's Homeland Security Advisory Council, 38114-38115 02-13857 Government Government Ethics Office RULES Government ethics:

Revocable inter vivos trusts (living trusts), 37965-37967 02-13734 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Children and Families Administration See Food and Drug Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration RULES Health insurance reform: Health Insurance Portability and Accountability Act of 1996— Standard unique employer identifier, 38009-38020 02-13616 PROPOSED RULES Health insurance reform:

Health Insurance Portability and Accountability Act of 1996— Electronic transactions and code sets standards; modifications, 38044-38050 02-13614 Transactions and code set standards for electronic transactions; modifications, 38050-38056 02-13615 Housing Housing and Urban Development Department NOTICES Grants and cooperative agreements; availability, etc.: Facilities to assist homeless— Excess and surplus Federal property, 38142 02-13302 Indian Indian Affairs Bureau NOTICES Tribal-State Compacts approval;

Class III (casino) gambling: Lower Brule Sioux Tribe, SD, 38144-38145 02-13651 Northern Cheyenne Tribe, MT, 38145 02-13650 Industry Industry and Security Bureau RULES Export administration regulations: Chemical and biological weapons controls; Australia Group; Chemical Weapons Convention, 37977-37988 02-13581 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau See Reclamation Bureau IRS Internal Revenue Service RULES Income taxes:

Consolidated return regulations— Loss limitation rules, 37998-38000 02-13574 Corporations filing consolidated returns; carryback of consolidated net operating losses to separate return years, 38000-38003 02-13576 PROPOSED RULES Income taxes: Consolidated return regulations— Loss limitation rules; cross-reference, 38040-38041 02-13575 Corporations filing consoildated returns; carryback of consolidated net operating losses to separate return years, 38039-38040 02-13577 Cost recovery (deductions) under income forecast method of depreciation; guidance, 38025-38039 02-13578 Justice Justice Department NOTICES Pollution control; consent judgments:

Stallworth Timber Co., Inc., 38147-38148 02-13627 Labor Labor Department See Employment Standards Administration Land Land Management Bureau RULES Organization, functions, and authority delegations: Oregon State Office, OR; address change Correction, 38009 02-13737 NOTICES Environmental statements; availability, etc.: Coachella Valley, CA; trails management plan, 38145 02-13475 Toquop Energy Project, NV, 38145-38147 02-13379 Library Library of Congress See Copyright Office, Library of Congress Maritime Maritime Administration NOTICES Coastwise trade laws; administrative waivers:

SIR THOMAS MORE, 38179-38180 02-13703 NIH National Institutes of Health NOTICES Agency information collection activities: Submission for OMB review; comment request, 38132-38133 02-13713 Inventions, Government-owned; availability for licensing, 38133 02-13731 Meetings: Advisory Committee to Director, 38133 02-13717 National Heart, Lung, and Blood Institute, 38134 02-13716 National Institute of Allergy and Infectious Diseases, 02-13714 38135-38137 02-13726 02-13727 National Institute of Child Health and Human Development, 38134 02-13718 National Institute of Mental Health, 38134-38135 02-13719 02-13720 National Institute of Neurological Disorders and Stroke, 38134, 38136-38137 02-13715 02-13724 02-13729 National Institute on Drug Abuse, 38136 02-13723 Scientific Review Center, 38137-38140 02-13728 02-13730 NOAA National Oceanic and Atmospheric Administration PROPOSED RULES Fishery conservation and management:

Caribbean, Gulf of Mexico, and South Atlantic fisheries— Puerto Rico and U.S. Virgin Islands; environmental impact statement; scoping meetings, 38060-38061 02-13707 NOTICES Agency information collection activities: Submission for OMB review; comment request, 38067-38068 02-13705 Nuclear Nuclear Regulatory Commission NOTICES Agency information collection activities: Proposed collection; comment request, 38149 02-13654 Submission for OMB review; comment request, 38149-38150 02-13652 02-13653 *Applications, hearings, determinations, etc.:* Southern California Edison Co., 38150-38152 02-13655 Pension Pension Benefit Guaranty Corporation RULES Single-employer plans:

Allocation of assets— Benefit payments; amendments; correction, 38003 02-13656 Postal Postal Service PROPOSED RULES Domestic Mail Manual: Move update and address matching requirements; changes, 38041-38043 02-13712 Public Public Health Service See Centers for Disease Control and Prevention See Food and Drug Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration Reclamation Reclamation Bureau NOTICES Closure orders: Klamath Project, OR, 38147 02-13630 SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes:

National Association of Securities Dealers, Inc., 38152-38173 02-13623 02-13625 Pacific Exchange, Inc., 38173-38174 02-13624 SBA Small Business Administration RULES Small business size standards: Travel agencies, 38186-38192 02-13605 Economic injury disaster loan program, 38183-38186 02-13604 State State Department NOTICES Art objects; importation for exhibition: Neo-Impressionism: Artists on the Edge, 38174-38175 02-13702 International Red Cross and Red Crescent Movement activities; participation determinations, 38175 02-13701 Substance Substance Abuse and Mental Health Services Administration NOTICES Grants and cooperative agreements; availability, etc.:

Health care for homeless programs and community mental health agencies program; link, 38140-38141 02-13738 National Community Antidrug Coalition Institute, 38141-38142 02-13739 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, etc.: Duluth & Northeastern Railroad Co., 38180 02-13508 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration See Maritime Administration See Surface Transportation Board Treasury Treasury Department See Internal Revenue Service Separate Parts In This Issue Part II Small Business Administration, 38183-38192 02-13604 02-13605 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 67 105 Friday, May 31, 2002 Rules and Regulations OFFICE OF GOVERNMENT ETHICS 5 CFR Part 2634 RIN 3209-AA00 Executive Branch Financial Disclosure, Qualified Trusts, and Certificates of Divestiture; Financial Disclosure Requirements for Interests in Revocable Inter Vivos Trusts AGENCY:

Office of Government Ethics (OGE). ACTION: Final rule; clarifying amendment. SUMMARY: The Office of Government Ethics is issuing a final rule to amend the regulation that describes the financial disclosure requirements of the Ethics in Government Act with respect to trusts in which employees, their spouses and their dependent children have certain interests. The amendment clarifies OGE's interpretation that the Act does not require filers of financial disclosure reports to disclose the holdings or income of a revocable inter vivos trust with respect to which they, their spouses or their dependent children have a beneficial interest or receive a discretionary distribution, provided that neither the filer, the filer's spouse, nor the filer's dependent child is the grantor of the trust.

EFFECTIVE DATE: May 31, 2002. FOR FURTHER INFORMATION CONTACT: Richard M. Thomas, Associate General Counsel, Office of Government Ethics; Telephone: 202-208-8000; TDD: 202-208-8025; FAX: 202-208-8037. SUPPLEMENTARY INFORMATION: I. Revocable Inter Vivos Trusts (“Living Trusts”) Revocable inter vivos trusts, so-called “living trusts,” have become a popular estate planning device in the last several decades. In the typical living trust, the grantor (or settlor) conveys property in trust to a trustee (who is often the grantor) and retains a life estate, with the remainder to go to specified beneficiaries upon the termination of the life estate—all *subject to the power of the grantor* to revoke the trust entirely and to make lessor changes, such as substitutions of beneficiaries or trustees.

In this regard, revocable living trusts have less in common with traditional irrevocable trusts, in which the grantor no longer retains substantial control over the administration of the trust or the disposition of the property, than with wills, which remain ambulatory until the death of the testator. Therefore, it is widely recognized that living trusts are “will substitutes.” II. Legislative and Regulatory Background of Financial Disclosure Requirements Section 102(f)(1) of the Ethics in Government Act of 1978, as amended (the Act), sets out the general financial disclosure requirements for beneficiaries of trusts and other financial arrangements: each reporting individual shall report the information required to be reported pursuant to subsections (a), (b), and

(c)of this section with respect to the holdings of and the income from a trust or other financial arrangement from which income is received by, or with respect to which a beneficial interest in principal or income is held by, such individual, his spouse, or any dependent child. 5 U.S.C. app. 102(f)(1). The legislative history indicates several related purposes for this provision. First, there was an intent to prevent filers from avoiding reporting requirements “simply by transferring interests” to a trust or other entity that would still benefit the filer financially. H.R. Rep. No. 95-642, Part 1, at 40

(1977)(reporting on H.R. 6954). Second, there was concern that situations could arise in which there is an actual or apparent conflict of interest because “any impact on the financial status of the * * * trust also impacts significantly upon the financial status of the reporting individual.” *Id.* Third, it appears that the trust provision was included at least in part to deal with the fact that Federal officials already had created a variety of “blind” trusts, which did not follow any generally accepted standards, in an attempt to comply with conflict of interest requirements; Congress determined that any such pre-existing trusts should be subject to full disclosure if the trusts could not be brought into compliance with the new uniform standards for qualified blind trusts under the Act. *See* S. Rep. No. 95-170, at 123-124

(1977)(reporting on S. 555). In 1980, OGE first published its “final regulations to state in greater detail than the Act the information which must be contained in the financial disclosure report (SF 278).” 45 FR 69776 (October 21, 1980). Included in those regulations was a provision stating in greater detail what kinds of interests in trusts and estates needed to be reported under the Act. Although the Act itself did not specifically address the distinction between vested and nonvested beneficial interests, the OGE regulation specified that nonvested interests in an estate need not be reported and that nonvested interests in certain trusts needed to be evaluated on a case-by-case basis in consultation with OGE. *See* 45 FR 69784. In 1992, this regulation was amended to provide even greater detail with respect to those interests in trusts that were deemed reportable under the Act. *See* 57 FR 11800 (April 7, 1992). In particular, nonvested beneficial interests were excluded altogether, and a definition of vested interests was provided. *See* 5 CFR 2634.310(a)(2). Although there is no discussion of the subject of nonvested interests in the preambles to these two rules, OGE clearly recognized that the statutory phrase “beneficial interest in principal or income” should not be read so broadly as to require the public disclosure of interests the enjoyment of which is so speculative and uncertain: “the uncertainty of the right of enjoyment * * * differentiates a ‘vested’ and a ‘nonvested’ interest.” 5 CFR 2634.310(a)(2). Furthermore, the reporting of nonvested interests would not further the statutory purpose of disclosing interests that pose a potential conflict of interest, because OGE determined that such interests generally are too uncertain to implicate the financial conflict of interest statute, 18 U.S.C. 208. *See* OGE's Public Financial Disclosure: A Reviewer's Reference 7-30 revised (1996), which is available in the publications section of the OGE Web site (http://www.usoge.gov). On a related subject, OGE also has provided guidance concerning the reporting of potential interests as a beneficiary under a will. Of particular relevance, OGE determined that section 102(f)(1) of the Act and 5 CFR 2634.310 do not require filers to report the holdings and income of an estate of a living person just because they are named as beneficiaries under that person's will. *Id.* The Office of Government Ethics concluded that any potential beneficial interest created by the will of a living person is not vested, within the meaning of § 2634.310(a)(2). Likewise, OGE has determined that an employee does not have a disqualifying financial interest, under 18 U.S.C. 208(a), as a result of being named a beneficiary in a will of a person still living; in such cases, “the employee's interest in the assets to be distributed under the will is merely speculative since he may never inherit them.” 60 FR 47207, 47209 (September 11, 1995) (preamble to OGE's proposed financial conflict of interest regulation subsequently codified at 5 CFR part 2640). III. Treatment of Revocable Living Trusts Under Financial Disclosure Requirements Until now, OGE's regulations and other written guidance have not explicitly addressed the reporting requirements of beneficiaries under revocable living trusts. However, the approach taken in this final rule is consistent with, and follows from, OGE's prior treatment of nonvested interests in trusts and estates, including OGE's prior treatment of beneficiaries under the will of a living testator. As a technical matter, it may be open to debate whether a remainder interest in a revocable living trust best should be viewed as vested or nonvested. *Compare Randall* v. *Bank of America National Trust and Savings Ass'n.* , 119 P.2d 754 (Cal. App. 1941) (vested), *with Bezzini* v. *Department of Social Services,* 715 A.2d 791 (Conn. App. 1998) (not vested interest, but mere expectancy). Nevertheless, OGE finds it unnecessary to settle this technical question, in view of the fact that revocable living trusts clearly have evolved into widely accepted will substitutes. The Office of Government Ethics has determined, for purposes of section 102(f)(1) of the Act, that any “interest” in the remainder of a revocable living trust is just as speculative as the mere expectancy enjoyed by the beneficiary of a living testator. The Office of Government Ethics sees little connection between the purposes of section 102(f)(1), as described above, and the disclosure of expectations that are so speculative and subject to the complete control of someone other than the filer, the filer's spouse or the filer's dependent children. Moreover, such disclosures necessarily would reveal the interests—and estate planning decisions—of persons beyond the filer and the filer's own spouse and dependent children, thus intruding unnecessarily into the private affairs of persons beyond the ordinary scope of financial disclosure under the Act. Therefore, the final rule adds a note indicating that nothing in § 2634.310 requires the reporting of the holdings or income of a revocable living trust with respect to which the reporting individual has only a remainder interest. Under the language of this note, it is not necessary to determine whether the remainder is vested or nonvested. However, the note makes clear that filers are not excused from reporting the holdings and income of a revocable trust if the filer—or the filer's spouse or dependent child—also is the grantor of the trust. As should be clear from the discussion above, the grantor of a revocable living trust retains such rights of control and enjoyment with respect to the trust property that OGE must view the grantor as the true owner of the property; OGE believes this to be the case whether or not the grantor actually receives any distribution of trust income and whether or not the grantor actually serves as trustee. The new note also provides that nothing in § 2634.310 requires the reporting of holdings or income of a revocable living trust from which the reporting individual receives any discretionary distribution, provided again that the filer (or the filer's spouse or dependent child) is not the grantor. It is true that section 102(f)(1) of the Act requires the disclosure of trusts “from which income is received” by the reporting individual, and that section 109(7) of the Act defines “income” as including “income from an interest in an estate or trust.” However, OGE does not view discretionary distributions to a beneficiary under a revocable living trust as income within the meaning of these provisions. In OGE's view, such a discretionary distribution is no different from a gift, because the distribution is made at the pleasure of the grantor. For purposes of financial disclosure, OGE sees no meaningful distinction between, for example, a gift of money from a filer's parent and a discretionary distribution of money from the parent's revocable living trust. The Act clearly treats income and gifts separately, and gifts are subject to different reporting requirements (and exclusions) than those found in section 102(f). *Compare* 5 U.S.C. app. 102(a)(1) (income), *with* section 102(a)(2) (gifts). OGE emphasizes that nothing in the final rule changes the reporting requirements with respect to irrevocable trusts. In this connection, it should be noted that revocable living trusts themselves may become irrevocable upon the occurrence of certain events, such as the death of the grantor or circumstances specified in the trust instrument or State law. IV. Matters of Regulatory Procedure Administrative Procedure Act Pursuant to 5 U.S.C. 553(b) and (d), as Director of the Office of Government Ethics, I find good cause exists for waiving the general notice of proposed rulemaking, public comment procedures, and 30-day delay in effectiveness as to this revision. The notice, comment, and delayed effective date are being waived because this minor amendment to OGE financial disclosure regulations is an interpretative rule clarifying OGE's view concerning the scope of section 102(f)(1) of the Ethics in Government Act. Furthermore, it is in the public interest that this amendment become effective promptly, because the amendment has the effect of relieving an unnecessary burden on filers of financial disclosure reports. Executive Order 12866 In promulgating this final rule amendment, the Office of Government Ethics has adhered to the regulatory philosophy and the applicable principles of regulation set forth in section 1 of Executive Order 12866, Regulatory Review and Planning. This amendment has not been reviewed by the Office of Management and Budget under that Executive order, since it is not deemed “significant” thereunder. Executive Order 12988 As Director of the Office of Government Ethics, I have reviewed this final amendatory regulation in light of section 3 of Executive Order 12988, Civil Justice Reform, and certify that it meets the applicable standards provided therein. 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 proposed amendatory rule will not have a significant economic impact on a substantial number of small entities because it primarily affects Federal executive branch employees. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply because this final rule amendment 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 Office of Government Ethics has determined that this proposed rulemaking involves a nonmajor rule under the Congressional Review Act (5 U.S.C. chapter 8) and has submitted a report thereon to the U.S. Senate, House of Representatives and General Accounting Office in accordance with that law. List of Subjects in 5 CFR Part 2634 Certificates of divestiture, Conflict of interests, Financial disclosure, Government employees, Penalties, Privacy, Reporting and recordkeeping requirements, Trusts and trustees. Approved: May 24, 2002. Amy L. Comstock, Director, Office of Government Ethics. Accordingly, for the reasons set forth in the preamble, the Office of Government Ethics is amending 5 CFR part 2634 as follows: PART 2634—EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, AND CERTIFICATES OF DIVESTITURE 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); 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. Section 2634.310 is amended by adding a note following paragraph (a)(2) to read as follows: § 2634.310 Trusts, estates, and investment funds.

(a)* * * Note to paragraph (a): Nothing in this section requires the reporting of the holdings or income of a revocable inter vivos trust (also known as a “living trust”) with respect to which the filer, his spouse or dependent child has only a remainder interest, whether or not vested, provided that the grantor of the trust is neither the filer, the filer's spouse, nor the filer's dependent child. Furthermore, nothing in this section requires the reporting of the holdings or income of a revocable inter vivos trust from which the filer, his spouse or dependent child receives any discretionary distribution, provided that the grantor of the trust is neither the filer, the filer's spouse, nor the filer's dependent child. [FR Doc. 02-13734 Filed 5-30-02; 8:45 am]

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