Unknown. Final rule

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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-2010-08-27.xml --- 75 166 Friday, August 27, 2010 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Forest Service Animal Animal and Plant Health Inspection Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Importation of Animals and Poultry, Animal and Poultry Products, Certain Animal Embryos, Semen, and Zoological Animals, 52709-52710 2010-21458 National Animal Health Monitoring System;

Sheep 2011 Study, 52711-52712 2010-21455 National Management Information System, 52710-52711 2010-21459 Decision To Issue Permits for Importation of Fresh Mango Fruit from Pakistan into Continental United States, 52712-52713 2010-21568 Army Army Department NOTICES Record of Decision for Fort Bliss Army Growth and Force Structure Realignment, 52733-52734 2010-21376 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 Medicare & Medicaid Services RULES Medicare Program:

Additional Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Supplier Enrollment Safeguards, 52629-52649 2010-21354 NOTICES Meetings: Medicare Program; Implementation of Section 10332 of Patient Protection and Affordable Care Act, etc., 52760-52762 2010-21369 Children Children and Families Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 52753-52754 2010-21203 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration NOTICES Meetings:

Environmental Technologies Trade Advisory Committee, 52716 2010-21370 Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement List; Additions and Deletions, 52723-52731 2010-21378 2010-21379 2010-21380 Commodity Commodity Futures Trading Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Establishing Procedures To Implement the Notification Requirements for Entities Operating as Exempt Markets, 52731-52732 2010-21144 Consumer Consumer Product Safety Commission RULES Requirements for Accreditation of Third Party Conformity Assessment Bodies:

Third Party Testing for Certain Childrens Products; Youth All-Terrain Vehicles, 52616-52619 2010-21199 NOTICES Meetings; Sunshine Act, 52732 2010-21510 2010-21511 Defense Defense Acquisition Regulations System RULES Defense Federal Acquisition Regulation Supplements: Acquisition of Commercial Items, 52650 2010-21365 Defense Defense Department See Army Department See Defense Acquisition Regulations System NOTICES Committee Renewals: Missile Defense Advisory Committee, 52732-52733 2010-21377 Employment Employment and Training Administration PROPOSED RULES YouthBuild Program, 52671-52689 2010-21097 EPA Environmental Protection Agency PROPOSED RULES Approval and Promulgation of Implementation Plans:

New Mexico; Interstate Transport of Pollution; Revisions to Prevention of Significant Deterioration Regulations, 52692-52701 2010-21384 Approvals and Promulgations of Implementation Plans: State of Missouri, 52701-52708 2010-21446 Supplemental Proposal to Proposed Confidentiality Determinations: Data Required Under Mandatory Greenhouse Gas Reporting Rule, 52691-52692 2010-21385 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Cooling Water Intake Structure Phase II Existing Facilities, 52734-52735 2010-21426 Clean Water Act Section 303(d) List Decisions;

Availability, 52735-52736 2010-21390 Environmental Impact Statements: Weekly Receipt, 52736-52737 2010-21439 Meetings: Mobile Sources Technical Review Subcommittee, 52737 2010-21391 Pesticide Product Registrations; Unconditional and Conditional Approvals, 52737-52745 2010-21290 Proposed Administrative Settlement under CERCLA: Crown Vantage Landfill Superfund Site, Alexandria Township, Hunterdon County, NJ, 52745-52746 2010-21381 Executive Office of the President See National Drug Control Policy Office See Trade Representative, Office of United States FAA Federal Aviation Administration RULES Special Conditions:

Embraer Model ERJ 170-100 SU series airplanes; seats with non-traditional, large, non-metallic panels, 52614-52616 2010-21449 PROPOSED RULES Airworthiness Directives: Airbus Model A300 Series Airplanes, 52652-52654 2010-21419 Proposed Establishment of Class E Airspace: Bamberg, SC, 52654-52655 2010-21215 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Certification of Airmen for Operation of Light-Sport Aircraft, 52801 2010-21452 Certification;

Mechanics, Repairmen, and Parachute Riggers, 52802 2010-21440 FAA Safety Briefing Readership Survey, 52801-52802 2010-21214 High Density Traffic Airports; Slot Allocation and Transfer Methods, 52802-52803 2010-21443 Maintenance, Preventative Maintenance, Rebuilding and Alteration, 52803 2010-21453 Physiological Training, 52803-52804 2010-21454 New Task Assignments: Aviation Rulemaking Advisory Committee; Transport Airplane and Engine Issues, 52807-52809 2010-21333 Waivers of Aeronautical Land-Use Assurance:

Rickenbacker International Airport, Columbus, OH, 52819 2010-21210 FCC Federal Communications Commission RULES Radio Broadcasting Services: DeBeque, CO, 52649-52650 2010-21430 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 52746-52747 2010-21304 2010-21306 Federal Emergency Federal Emergency Management Agency NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals Request for Federal Assistance Form—How To Process Mission Assignments in Federal Disaster Operations, 52770-52771 2010-21434 Federal Highway Federal Highway Administration NOTICES Environmental Impact Statements;

Availability, etc.: Stanislaus County, CA, 52804 2010-21336 Funding Availabilities: Truck Parking Facilities Program; Application Procedure and Deadlines, 52804-52807 2010-21323 Federal Housing Federal Housing Finance Agency RULES Supplemental Standards of Ethical Conduct for Employees of Federal Housing Finance Agency, 52607-52614 2010-21324 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 52747-52749 2010-21422 Federal Motor Federal Motor Carrier Safety Administration NOTICES Qualification of Drivers;

Exemption Applications; Diabetes Mellitus, 52809-52818 2010-21425 2010-21428 FTC Federal Trade Commission PROPOSED RULES Summary of Rights and Notices of Duties Under the Fair Credit Reporting Act, 52655-52671 2010-21202 NOTICES Privacy Act; Systems of Records, 52749-52751 2010-21318 Fish Fish and Wildlife Service RULES Subsistence Management Regulations for Public Lands in Alaska 2010-11 and 2011-12 Subsistence Taking of Wildlife Regulations; etc.; Correction, 52627 2010-21405 NOTICES Environmental Impact Statements;

Availability, etc.: Habitat Conservation Plan for the Beech Ridge Wind Energy Project; Greenbrier and Nicholas Counties; WV, 52778 2010-21337 Food Food and Drug Administration RULES New Animal Drugs; Changes of Sponsors; Withdrawals of Approvals of New Animal Drug Applications: Deslorelin Acetate; Dichlorophene and Toluene Capsules; Pyrantel Pamoate Suspension, 52621-52622 2010-21296 NOTICES Draft Guidance for Industry on Acute Bacterial Skin and Skin Structure Infections: Developing Drugs for Treatment;

Availability, 52755-52756 2010-21328 Meetings: Cardiovascular and Renal Drugs Advisory Committee, 52762-52763 2010-21383 Public Hearing: Development and Distribution of Patient Medication Information for Prescription Drugs, 52765-52768 2010-21326 Withdrawals of Approvals of New Animal Drug Applications: Dichlorophene and Toluene Capsules, 52768 2010-21295 Forest Forest Service RULES Subsistence Management Regulations for Public Lands in Alaska 2010-11 and 2011-12 Subsistence Taking of Wildlife Regulations; etc.;

Correction, 52627 2010-21405 NOTICES Environmental Impact Statements; Availability, etc.: Nationwide Aerial Application of Fire Retardant on National Forest System Lands, 52713-52714 2010-21482 Meetings: Ashley Resource Advisory Committee, 52715 2010-21256 Southern Arizona Resource Advisory Committee, 52715-52716 2010-21152 Wrangell-Petersburg Resource Advisory Committee, 52714-52715 2010-21338 Transfer of Land to Forest Service, 52716 2010-21361 Health Health and Human Services Department 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 NOTICES Meetings:

President's Council on Fitness, Sports and Nutrition, 52751 2010-21348 Trans-Atlantic Task Force on Antimicrobial Resistance, 52751-52752 2010-21351 Request for Comments on Synthetic Biology, 52752-52753 2010-21359 Homeland Homeland Security Department See Federal Emergency Management Agency NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Office of Infrastructure Protection Chemical Security Awareness Training Program, 52768-52769 2010-21373 Meetings:

DHS Data Privacy and Integrity Advisory Committee, 52769-52770 2010-21372 Housing Housing and Urban Development Department PROPOSED RULES Multifamily Housing Reform and Affordability Act: Projects Eligible for a Restructuring Plan; When Eligibility is Determined, 52689-52691 2010-21322 NOTICES Federal Property Suitable as Facilities To Assist the Homeless, 52822-52855 2010-21062 Funding Availabilities: Fiscal Year 2010 Indian Community Development Block Grant Program for Indian Tribes and Alaska Native Villages, 52771 2010-21401 Neighborhood Stabilization Program Reallocation Process Changes, 52772-52776 2010-21402 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau International International Trade Administration NOTICES Extensions of Preliminary Results of Antidumping Duty New Shipper Reviews:

Wooden Bedroom Furniture From People's Republic of China, 52716-52717 2010-21406 Extensions of Time Limits for Preliminary Results of Antidumping Duty New Shipper Reviews: Polyethylene Terephthalate Film, Sheet and Strip From India, 52717 2010-21421 Extensions of Time Limits for Preliminary Results of Countervailing Duty New Shipper Reviews: Polyethylene Terephthalate Film, Sheet and Strip From India, 52717-52718 2010-21404 Final Results of Antidumping Duty Changed Circumstances Reviews:

Certain Frozen Warmwater Shrimp From India, 52718-52719 2010-21418 Rescissions of Countervailing Duty New Shipper Reviews: Raw Flexible Magnets From People's Republic of China, 52721-52722 2010-21412 Justice Justice Department NOTICES Lodging of Settlement Agreement Under CERCLA, 52778-52779 2010-21457 Labor Labor Department See Employment and Training Administration Land Land Management Bureau NOTICES Environmental Impact Statements; Availability, etc.: Desert Sunlight Holdings, LLC Desert Sunlight Solar Farm Project, etc., 52776-52778 2010-21276 NASA National Aeronautics and Space Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 52779-52780 2010-21321 National Drug National Drug Control Policy Office NOTICES Designation of Nine Counties as High Intensity Drug Trafficking Areas, 52780 2010-21320 NIH National Institutes of Health NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Assessing the Long-Term Impacts of the John E. Fogarty International Centers Research and Training Programs, 52754-52755 2010-21350 Government-Owned Inventions;

Availability for Licensing, 52756-52760 2010-21347 2010-21349 Meetings: Center for Scientific Review, 52764-52765 2010-21352 2010-21357 Eunice Kennedy Shriver National Institute of Child Health and Human Development, 52763 2010-21360 National Eye Institute, 52762 2010-21346 National Institute of Diabetes and Digestive and Kidney Diseases, 52763-52764 2010-21362 NOAA National Oceanic and Atmospheric Administration RULES Fisheries of the Northeastern United States: Spiny Dogfish Fishery;

Commercial Period 1 Quota Harvested; Closure, 52650-52651 2010-21382 NOTICES Meetings: South Atlantic Fishery Management Council, 52719-52721 2010-21340 Permits: Marine Mammals; File No. 15471, 52721 2010-21407 Taking and Importing of Marine Mammals, 52722-52723 2010-21409 Nuclear Nuclear Regulatory Commission NOTICES Environmental Impact Statements; Availability, etc.: Moore Ranch In-Situ Recovery Project in Campbell County, WY, 52780-52781 2010-21126 Requests for License Amendments:

Virginia Electric and Power Company, North Anna Power Station Unit Nos. 1 and 2, et al., 52781-52786 2010-21345 Withdrawal of Application for Amendment to Renewed Facility Operating License: Wolf Creek Nuclear Operating Corporation, 52786 2010-21344 Office of United States Trade Representative See Trade Representative, Office of United States Postal Postal Regulatory Commission NOTICES New Postal Product, 52786-52788 2010-21329 SEC Securities and Exchange Commission NOTICES Self-Regulatory Organizations;

Proposed Rule Changes: Chicago Board Options Exchange, Inc., 52792-52793 2010-21342 Municipal Securities Rulemaking Board, 52793-52796 2010-21308 NASDAQ Stock Market LLC, 52790-52792 2010-21307 SBA Small Business Administration NOTICES Disaster Declarations: Illinois, 52788-52789 2010-21420 Missouri, 52788 2010-21413 Texas; Amendment 1, 52789 2010-21431 Texas; Amendment 2, 52788 2010-21417 Texas; Amendment 3, 52789 2010-21435 Small Business Size Standards: Waiver of the Nonmanufacturer Rule, 52789-52790 2010-21424 2010-21427 Social Social Security Administration RULES Entitlement and Termination Requirements for Stepchildren, 52619-52621 2010-21341 State State Department RULES Amendments to International Traffic in Arms Regulations:

Export Exemption for Technical Data, 52625-52626 2010-21450 Removing Requirement for Prior Approval for Certain Proposals to Foreign Persons Relating to Significant Military Equipment, 52622-52625 2010-21451 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Voluntary Disclosures, 52796-52797 2010-21445 Privacy Act; Systems of Records, 52797-52799 2010-21429 2010-21432 Substance Substance Abuse and Mental Health Services Administration NOTICES Fiscal Year

(FY)2010 Funding Opportunity, 52756 2010-21339 Surface Surface Transportation Board NOTICES Trackage Rights Exemption: R.J. Corman Railroad Company/Central Kentucky Lines; CSX Transportation, Inc., 52818-52819 2010-21330 Susquehanna Susquehanna River Basin Commission NOTICES Meetings, 52799-52800 2010-21334 Trade Trade Representative, Office of United States NOTICES Membership of the Performance Review Board, 52801 2010-21371 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Motor Carrier Safety Administration See Surface Transportation Board Treasury Treasury Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 52819-52820 2010-21353 Veterans Veterans Affairs Department RULES Disenrollment Procedures, 52627-52628 2010-21297 Separate Parts In This Issue Part II Housing and Urban Development Department, 52822-52855 2010-21062 Reader Aids Consult the Reader Aids section at the end of this page 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. 75 166 Friday, August 27, 2010 Rules and Regulations FEDERAL HOUSING FINANCE AGENCY 5 CFR Chapter LXXX RIN 2590-AA02, 3209-AA15 Supplemental Standards of Ethical Conduct for Employees of the Federal Housing Finance Agency AGENCY: Federal Housing Finance Agency. ACTION: Final rule. SUMMARY: The Federal Housing Finance Agency

(FHFA)is publishing a final regulation, with the concurrence of the Office of Government Ethics, which supplements the Standards of Ethical Conduct for Employees of the Executive Branch. To ensure a comprehensive and effective ethics program at FHFA and to address ethical issues unique to FHFA, the final regulation establishes prohibitions on the ownership of certain financial interests and restrictions on outside employment and business activities. DATES: This regulation is effective August 27, 2010. FOR FURTHER INFORMATION CONTACT: Sean Dent, Associate General Counsel,

(202)414-3099 (not a toll-free number), Federal Housing Finance Agency, Fourth Floor, 1700 G Street, NW., Washington, DC 20552. The telephone number for the Telecommunications Device for the Deaf is

(800)877-8339. SUPPLEMENTARY INFORMATION: I. Background The Housing and Economic Recovery Act of 2008 (HERA), Public Law 110-289, 122 Stat. 2654, amended the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 *et seq.* ) (Safety and Soundness Act), and the Federal Home Loan Bank Act (12 U.S.C. 1421-1449) to establish FHFA as an independent agency of the Federal Government. 1 FHFA was established to oversee the prudential operations of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation (collectively, enterprises), and the Federal Home Loan Banks (Banks) (collectively, regulated entities) and to ensure that they operate in a safe and sound manner including being capitalized adequately; foster liquid, efficient, competitive and resilient national housing finance markets; comply with the Safety and Soundness Act and rules, regulations, guidelines and orders issued by the Director of FHFA, and the respective authorizing statutes of the regulated entities; and carry out their missions through activities authorized and consistent with the Safety and Soundness Act and their authorizing statutes; and, that the activities and operations of the regulated entities are consistent with the public interest. 1 *See* Division A, titled the “Federal Housing Finance Regulatory Reform Act of 2008,” Title I, § 1101 of HERA. II. Proposed Regulation; Comments Received; Technical Revisions Proposed Regulation Executive Order 12674, as amended by Executive Order 12731, authorized the United States Office of Government Ethics

(OGE)to establish a single, comprehensive and clear set of executive-branch standards of conduct. On August 7, 1992, OGE published the Standards of Ethical Conduct for Employees of the Executive Branch (Standards). 2 Codified at 5 CFR part 2635, the Standards took effect on February 3, 1993, and established uniform standards of ethical conduct for all executive branch employees. 2 *See* 57 FR 35006-35067, as corrected at 57 FR 48557 and 57 FR 52583, with additional grace period extensions at 59 FR 4779-4780, 60 FR 6390-6391, 60 FR 66857-66858, and 61 FR 40950-40952. With the concurrence of OGE, 5 CFR 2635.105 authorizes executive branch agencies to publish agency-specific supplemental regulations necessary to implement their respective ethics programs. With such concurrence, FHFA published proposed supplemental rules for comment on April 16, 2010 (75 FR 19909). Comments Received FHFA received and considered two comments from one member of the public. The first comment relates to § 9001.101. That section, as proposed, contains cross-references to other executive branch ethics regulations and a subsequent employment restriction of section 1317D of the Safety and Soundness Act, 12 U.S.C. 4523, applicable to certain highly compensated former FHFA officers and employees. Section 1317D prohibits such highly compensated former FHFA officers and employees from accepting compensation from an enterprise under section 1317D of the Safety and Soundness Act for two years after leaving FHFA. The commenter believes that this statutory restriction is inconsistent with the government-wide post-employment restrictions of 18 U.S.C. 207(a)(1) and

(2)and 5 CFR 2635.601. FHFA notes that the section 1317D statutory restriction is in addition to the government-wide post-employment restrictions of 18 U.S.C. 207(a)(1) and

(2)and 5 CFR 2635.601. Thus, FHFA has determined that a revision to § 9001.101 is not needed. The second comment relates to §§ 9001.104 and 9001.106. Section 9001.104(a) prohibits FHFA employees and the employees' spouse and minor children from owning or controlling certain financial interests that are related to or affected by the operations of FHFA, such as securities owned, issued, guaranteed, securitized, or collateralized by the regulated entities. Section 9001.106 prohibits an employee of FHFA from participating in any matter in which a regulated entity is a party if the regulated entity employs, as an employee or consultant, his or her spouse, child, parent, or sibling, or member of his or her household unless the Designated Agency Ethics Official has authorized the employee to participate in the matter using the standard in 5 CFR 2635.502(d). The commenter noted that the application of the two sections to family members differs. The restriction prohibiting the ownership or control of certain financial interests applies only to the employee's spouse and minor children, while the restriction relating to employment by a regulated entity has a broader application in that it applies to the employee's spouse, child, or sibling, or a member of his or her household. The commenter believes that FHFA's inclusion of family and household members in § 9001.106 but not in § 9001.104 might lead the public to question the different treatment and increase public uncertainty and confusion and make it more difficult for employees to distinguish between the restrictions that apply. The different application of the two sections conforms to law and regulation. FHFA notes that the restriction in § 9001.104 prohibiting the ownership or control of certain financial interests conforms to the scope of the government-wide conflicting financial interests law at 18 U.S.C. 208, which applies to the employee and to the employee's spouse and minor children, individuals whose financial interests are by law attributed to the employee. The requirement to receive prior approval before employment by a regulated entity of the employee's spouse, child, sibling, or a member of his or her household in § 9001.106 is intended to determine whether the employment could raise questions about the employee's impartiality in performing his or her duties under the Standards. Issuance of Final Regulation With Technical and Clarifying Revisions; Immediate Effective Date Section 9001.101 has been revised to add a reference to the regulation concerning the post-employment restriction for senior examiners at 12 CFR part 1212. Clarifying provisions have been added to §§ 9001.104(d) and 9001.105(b), as discussed below under the Section-by-Section Analysis. FHFA, with the concurrence of OGE, has determined that the following supplemental rules that are contained in the proposed regulation, which adds a new 5 CFR chapter LXXX, consisting of part 9001, are necessary to implement successfully the ethics program of FHFA in light of the unique programs and operations of FHFA. Thus, FHFA is publishing as final the regulation as proposed with the technical revisions noted above. The final regulation has an immediate effective date for good cause. The final regulation, which affects only FHFA employees, is necessary to ensure the public trust in FHFA operations and it provides employees with adequate notice and time to report prohibited holdings and outside employment. III. Section-by-Section Analysis The following is a section-by-section analysis of the regulation. Section 9001.101 General Section 9001.101 explains that the regulation applies to all employees of FHFA and supplements the Standards found in 5 CFR part 2635. It also requires that employees of FHFA must comply with the Standards, this part, guidance and procedures established pursuant to this part, the regulation concerning the post-employment restriction for senior examiners at 12 CFR part 1212, and any additional rules of conduct that FHFA is authorized to issue. It also notes that employees should contact the Designated Agency Ethics Official

(DAEO)if they have questions about any provision of this regulation or other ethics-related matters. The section also contains cross-references to other executive branch ethics regulations and a subsequent employment restriction of section 1317D of the Safety and Soundness Act, 12 U.S.C. 4523, applicable to certain highly compensated former FHFA officers and employees, including FHFA Director, along with an annual employee notification requirement as to that statutory restriction. Section 1317D prohibits such highly compensated former FHFA officers and employees, and the Director, from accepting compensation from an enterprise under section 1317D of the Safety and Soundness Act for two years after leaving FHFA. Section 9001.102 Definitions Section 9001.102 defines the key terms used in the regulation. *Affiliate* is defined as any entity that controls, is controlled by, or is under common control with another entity. *Designated Agency Ethics Official,* or *DAEO,* as also used in 5 CFR part 2635, and “alternate DAEO” are defined as the individuals so designated by the Director, FHFA. The DAEO is responsible for designating agency ethics officials and ethics designees, as such terms are used in 5 CFR part 2635. The alternate DAEO acts as the DAEO in the DAEO's absence. *Director* is defined to mean the Director of FHFA or his or her designee. *Employee* is defined to mean an officer or employee of FHFA, including a special Government employee. For purposes of this part, it also is defined as an individual on detail from another agency to FHFA for a period of more than 30 days. *Enterprise* is defined as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. *Federal Home Loan Bank* or *Bank* is defined to mean a Bank established under the Federal Home Loan Bank Act; the term “Federal Home Loan Banks” means, collectively, all the Federal Home Loan Banks. *Federal Home Loan Bank System* is defined to mean the Federal Home Loan Banks under the supervision of FHFA. *Regulated entity* is defined to mean the Federal National Mortgage Association and any affiliate thereof; the Federal Home Loan Mortgage Corporation and any affiliate thereof; or any Federal Home Loan Bank; the term “regulated entities” means, collectively, the Federal National Mortgage Association and any affiliate thereof; the Federal Home Loan Mortgage Corporation and any affiliate thereof; and the Federal Home Loan Banks. *Safety and Soundness Act* is defined to mean the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 *et seq.* ), as amended by the Housing and Economic Recovery Act of 2008 (HERA), Public Law 110-289, 122 Stat. 2654 (2008). *Security* is defined to mean all interests in debt or equity instruments. The term includes, without limitation, secured and unsecured bonds, debentures, notes, securitized assets and commercial paper including loans securitized by mortgages or deeds of trust and securities backed by such instruments, as well as all types of preferred and common stock. The term encompasses current and contingent ownership interests including any beneficial or legal interest derived from a trust. Such interest includes any right to acquire or dispose of any long or short position in such securities and also includes, without limit, interests convertible into such securities, as well as options, rights, warrants, puts, calls and straddles with respect thereto. The term shall not, however, be construed to include deposit accounts, such as checking, savings, or money market deposit accounts. Section 9001.103 Waivers Section 9001.103 authorizes the DAEO to grant employees of FHFA written waivers of any provision of the FHFA regulation based upon a determination that the waiver will not result in conduct inconsistent with 5 CFR part 2635 or otherwise prohibited by law, and that application of the provision is not be necessary to ensure public confidence in the impartiality and objectivity with which the programs of FHFA are administered. In granting a waiver under § 9001.103, the DAEO may require the employee to take further action, including executing a written disqualification statement. This provision is intended, in appropriate cases, to ease the burden that these supplemental regulations will impose on employees of FHFA while ensuring that employees do not engage in actions or hold financial interests that may interfere with the objective and impartial performance of their official duties. Section 9001.104 Prohibited Financial Interests Section 9001.104(a) prohibits FHFA employees and the employees' spouse and minor children from owning or controlling certain financial interests that are related to or affected by the operations of FHFA, such as securities owned, issued, guaranteed, securitized, or collateralized by the regulated entities. This prohibition does not apply to special Government employees. 3 The prohibition of § 9001.104(a) is based on the view of FHFA that permitting FHFA employees and their spouse and minor children directly or indirectly to own or control securities owned, issued, guaranteed, securitized, or collateralized by the regulated entities would cause a reasonable person to question the impartiality with which FHFA programs are administered. Specifically, FHFA believes that there is a direct and appropriate nexus between the prohibition against owning or controlling such securities as applied both to employees and to the spouses and minor children of employees and the efficiency of the service. 3 The term “special Government employee” is defined in 5 CFR 2635.102 to mean “those executive branch officers or employees specified in 18 U.S.C. 202(a). A special Government employee is retained, designated, appointed, or employed to perform temporary duties either on a full-time or intermittent basis, with or without compensation, for a period not to exceed 130 days during any consecutive 365-day period.” In addition, while Federal conflict of interest statutes and the Standards prohibit an employee of FHFA from participating in matters in which the employee or the employee's spouse or minor children have a conflicting financial interest, FHFA has determined that a broader ban is more effective in ensuring that no reasonable person could question the impartiality and objectivity of the agency's actions. The broader ban of § 9001.104(a) establishes a clear prohibition that will be easily understood by observers of FHFA. Moreover, the prohibition will substantially reduce the burden on FHFA and FHFA employees to determine the scope of the prohibition for each employee. By promulgating a broad ban that excludes all securities owned, issued, guaranteed, securitized, or collateralized by the regulated entities, § 9001.104(a) will substantially reduce the need for FHFA employees, the DAEO, and other agency ethics officials or counselors to determine the financial interests prohibited by each employee's duties. Section 9001.104(b) also attributes to an FHFA employee, or to the employee's spouse and minor children, securities he or she is prohibited from holding directly by § 9001.104(a) that are held by certain described third-party entities. Section § 9001.104(c) permits an FHFA employee and the employee's spouse and minor children to own interests in publicly-traded or publicly-available diversified mutual or other collective diversified investment funds that contain within their portfolios interests that they are prohibited from holding by § 9001.104(c). Under this provision, ownership of such investment funds are permitted as long as the employee or the employee's spouse or minor children do not have the ability to control the fund or its portfolio, and the fund does not have an objective or practice of concentrating its investments in securities of a regulated entity or the regulated entities generally, and less than 25 percent of the total holdings of the fund are comprised of securities owned, issued, guaranteed, securitized, or collateralized by one or more regulated entities. This exception to § 9001.104(a) reflects the view of FHFA that the prohibition on owning or controlling securities of the regulated entities should not be extended to publicly-traded or publicly-available mutual funds or other collective investment funds that are diversified and over which employees have no control, since it would be unreasonable to require employees to divest themselves of such mutual funds based on investment decisions in which they played no role. FHFA believes that allowing an FHFA employee and the employee's spouse and minor children to own interests in publicly-traded or publicly-available diversified mutual funds and collective investment funds will not endanger the impartiality or objectivity of FHFA, even if these funds held some limited interest in securities owned, issued, securitized, guaranteed, or collateralized by one or more of the regulated entities. Section 9001.104(d) requires employees of FHFA, within 30 calendar days commencement of employment, to report to the DAEO in writing all financial interests that they acquired prior or the commencement of their employment, and that they are prohibited from holding by § 9001.104(a). Employees are required to divest such interests, within 90 calendar days of the date reported, unless they receive a written waiver from the DAEO in accordance with § 9001.103. The section imposes a similar reporting and divestiture requirement upon employees who acquire, without specific intent, financial interests prohibited by § 9001.104(a). Section 9001.104(d) has been clarified to provide expressly that the reporting and divestiture requirements also apply to prohibited financial interests acquired prior to the effective date of this part. Section 9001.105 Outside Employment This section is designed to balance several important ethical principles against an employee's right to engage in outside activities. Paragraph

(a)of the section prohibits an FHFA employee, except for a special Government employee, from engaging in paid or unpaid employment with

(1)a person, other than a State or local government, who is a registered lobbyist engaged in lobbying activities concerning FHFA programs;

(2)any regulated entity, or

(3)the Office of Finance of the Federal Home Loan Bank System. FHFA is of the view that such a policy against active participation in such businesses is necessary to protect against questions regarding the impartiality and objectivity of employees and the administration of the programs of FHFA. FHFA believes that it will hinder FHFA in meeting its missions if members of the public could question whether employees are using their public positions or connections at FHFA to advance alternate careers. Furthermore, in accordance with 5 CFR 2635.803, FHFA is of the view that it is necessary or desirable for the purpose of administering its ethics program to require FHFA employees to obtain approval before engaging in outside employment or activities. An approval requirement helps ensure that potential ethical problems are resolved before employees begin outside employment or activities that could involve a violation of applicable statutes and standards of conduct. Thus, § 9001.105(b)(1) provides that an FHFA employee, other than a special Government employee, must obtain advance written approval from the employee's supervisor and the concurrence of the DAEO before engaging in any outside employment. FHFA has added clarifying language to § 9001.105(b)(2) addressing outside employment commenced by employees before the effective date of this part. An employee who commenced engaging in any outside employment not prohibited under § 9001.105(a) before the effective date of this part must request written approval from his or her supervisor and the concurrence of the DAEO within 30 calendar days of the effective date. The employee may continue engaging in the outside employment while the request is under review. Section 9001.105(b)(2) also addresses outside employment by new employees. An employee who before being employed by FHFA commenced engaging in any outside employment not prohibited under § 9001.105(a) must request written approval from his or her supervisor and the concurrence of the DAEO within 30 calendar days of commencing employment with FHFA. The new employee may continue engaging in the outside employment while the request is under review. Paragraph

(c)to § 9001.105 broadly defines outside employment to cover any form of non-Federal employment or business relationship involving the provision of personal services, whether or not for compensation, other than in the discharge of official duties. It also includes writing when done under an arrangement with another person or entity for production or publication of the written product. It does not, however, include participation in the activities of nonprofit charitable, religious, professional, social, fraternal, educational, recreational, public service, or civic organizations, unless such activities are for

(1)compensation other than reimbursement of expenses,

(2)the organization's activities are devoted substantially to matters relating to the employee's official duties as defined in 5 CFR 2635.807(a)(2)(i)(B) through

(E)and the employee will serve as officer or director of the organization, or

(3)the activities will involve the provision of consultative or professional services. *Consultative services* is defined to mean the provision of personal services by an employee, including the rendering of advice or consultation, which requires advanced knowledge in a field of science or learning customarily acquired by a course of specialized instruction and study in an institution of higher education, hospital, or similar facility. *Professional services* is defined to mean the provision of personal services by an employee, including the rendering of advice or consultation, which involves application of the skills of a profession as defined in 5 CFR 2636.305(b)(1) or involves a fiduciary relationship as defined in 5 CFR 2636.305(b)(2). A note following paragraph

(c)of § 9001.105 pertains to the special approval requirement set out in both 18 U.S.C. 203(d) and 205(e), respectively, for certain representational activities otherwise covered by the conflict of interest restrictions on compensation and activities of employees in claims against and other matters affecting the Government. The note explains that an employee who wishes to act as agent or attorney for, or otherwise represent his or her parents, spouse, children, or any person for whom, or any estate for which, he or she is serving as guardian, executor, administrator, trustee, or other personal fiduciary in such matters must obtain the approval required by law of the Government official responsible for the employee's appointment in addition to the regulatory approval that is required in § 9001.105. Section 9001.105(d) sets out the procedures for requesting prior approval to engage in outside employment initially, or within seven calendar days of a significant change in the nature or scope of the outside employment or the employee's official position. Paragraph

(e)of § 9001.105 provides that the concurrence of the DAEO will be granted only upon a determination that the outside employment is not expected to involve conduct prohibited by statute or Federal regulation, including 5 CFR part 2635 and this part. Section 9001.105(f) provides that the DAEO may issue written instructions governing the submission of requests for approval of and concurrence with outside employment. The written instructions may exempt categories of employment from the prior approval and concurrence requirement based on a determination that employment within those categories will generally be approved and will likely not involve conduct prohibited by Federal law or regulation, including 5 CFR part 2635 and this part. Section 9001.106 Restrictions Resulting From Employment of Family and Household Members Section 9001.106 prohibits an employee of FHFA from participating in any matter in which a regulated entity is a party if the regulated entity employs, as an employee or consultant, his or her spouse, child, parent, or sibling, or member of his or her household unless the DAEO has authorized the employee to participate in the matter using the standard in 5 CFR 2635.502(d). Section 9001.106 requires such an employee to make a written report to the DAEO within 30 calendar days of employment by a regulated entity of the employee's spouse, child, parent, sibling, or member of his or her household. This requirement is intended to eliminate the potential for any appearance of preferential treatment in those instances where employment of a family member or a member of the employee's household would be likely to raise questions regarding the appropriateness of actions taken by the employee or FHFA. Section 9001.107 Other Limitations Section § 9001.107(a) references the statutory restriction on financial interests applicable to the Director, the Deputy Director of the Division of Enterprise Regulation, the Deputy Director of the Division of Federal Home Loan Bank Regulation, and the Deputy Director for Housing Mission and Goals. These individuals are subject to additional financial interest limitations set forth in section 1312(g) of the Safety and Soundness Act (12 U.S.C. 4512(g)). Section 1312(g) provides that the Director and each Deputy Director may not—

(1)Have any direct or indirect financial interest in any regulated entity or entity-affiliated party; 4 4 The term “entity-affiliated party” is defined in section 1301(11) of the Safety and Soundness Act (12 U.S.C. 4502(11)).

(2)Hold any office, position, or employment in any regulated entity or entity-affiliated party; or

(3)Have served as an executive officer or director of any regulated entity or entity-affiliated party at any time during the three-year period preceding the date of appointment or designation of such individual as Director or Deputy Director, as applicable. Paragraph

(b)of § 9001.107 provides that if an employee or the spouse or minor children of the employee directly or indirectly owns a financial interest in a member of a Bank or in a financial institution such as a mortgage bank, mortgage broker, bank, thrift, or other financial institution that originates, insures, or services mortgages that are owned, issued, guaranteed, securitized, or collateralized by a regulated entity, the employee is cautioned not to violate the statutory prohibition against financial conflicts of interest set forth in 18 U.S.C. 208. The language notes that the government-wide *de minimis* and other exceptions set forth in 5 CFR 2640.202 are applicable to the ownership or control of interests in such financial institutions. Employees are encouraged to seek a determination from the DAEO as to whether the financial interest in the member of a Bank or in the financial institution creates a financial conflict of interest or an appearance of a conflict of interest and whether the employee should disqualify himself or herself from participating in an official capacity in a particular matter involving the financial institution. Section 9001.108 Prohibited Recommendations Section 9001.108 prohibits an employee of FHFA from recommending, suggesting, or giving advice to any person with respect to financial transactions or investment actions involving the acquisition, sale, or divestiture of securities of a regulated entity. The Standards at 5 CFR 2635.703 prohibit an employee from allowing the improper use of nonpublic information to further his or her private interest or that of another, whether through advice or recommendation or by knowing unauthorized disclosure. The section supplements 5 CFR 2635.703 in that it expressly prohibits FHFA employees from using or creating the appearance of using information that is not available to the general public to further a private interest. The prohibition is also intended to eliminate any misunderstanding or harm that could result from such a recommendation. For example, an investor should not be misled into believing, pursuant to the recommendation of an FHFA employee, that the securities of a particular regulated entity regulated by FHFA is a sound buy because the investor believes that the employee may have access to inside information. Section 9001.109 Prohibited Purchase of Assets Section 9001.109 prohibits employees, the spouses of employees, and the minor children of employees of FHFA from purchasing real or personal property from the regulated entities unless it is sold at public auction or by other means that would ensure that the selling price of the property is the asset's fair market value. This prohibition supplements the general prohibition in 5 CFR 2635.702 against the use of public office for private gain. Regulatory Impacts Paperwork Reduction Act The regulation does not contain any information collection requirement that requires the approval of OMB under the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ). Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ) requires that a regulation that has a significant economic impact on a substantial number of small entities, small businesses, or small organizations must include an initial regulatory flexibility analysis describing the regulation's impact on small entities. Such an analysis need not be undertaken if the agency has certified that the regulation does not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). FHFA has considered the impact of the regulation under the Regulatory Flexibility Act. FHFA certifies that the regulation is not likely to have a significant economic impact on a substantial number of small business entities because the regulation is applicable only to employees of FHFA. List of Subjects in 5 CFR Part 9001 Administration, Conflict of interests, Ethics, Government employees. Accordingly, for the reasons stated in the preamble, FHFA, with the concurrence of OGE, is amending title 5 of the Code of Federal Regulations by adding a new chapter LXXX, consisting of part 9001, to read as follows: CHAPTER LXXX—FEDERAL HOUSING FINANCE AGENCY PART 9001—SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE FEDERAL HOUSING FINANCE AGENCY Sec. 9001.101 General. 9001.102 Definitions. 9001.103 Waivers. 9001.104 Prohibited financial interests. 9001.105 Outside employment. 9001.106 Restrictions resulting from employment of family and household members. 9001.107 Other limitations. 9001.108 Prohibited recommendations. 9001.109 Prohibited purchase of assets. Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 1978); 12 U.S.C. 4526; 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; 5 CFR 2635.105, 2635.402(c), 2635.403(a), 2635.502(e), 2635.604, 2635.702, 2635.703, 2635.802(a), 2635.803. § 9001.101 General.

(a)*Purpose and scope.* In accordance with 5 CFR 2635.105, the purpose of this regulation is to supplement the Standards of Ethical Conduct for Employees of the Executive Branch contained in 5 CFR part 2635. The regulation applies to employees of the Federal Housing Finance Agency (FHFA). Employees are required to comply with 5 CFR part 2635, this part, guidance and procedures established pursuant to this part, the regulation concerning the post-employment restriction for senior examiners at 12 CFR part 1212, and any additional rules of conduct that FHFA is authorized to issue. Employees should contact the DAEO if they have questions about any provision of this regulation or other ethics-related matters.

(b)*Cross-references* —(1) *Regulations.* FHFA employees are also subject to the regulations concerning executive branch financial disclosure contained in 5 CFR part 2634, the regulations concerning executive branch financial interests contained in 5 CFR part 2640, and the regulations concerning executive branch employee responsibilities and conduct contained in 5 CFR part 735. (2)(i) *Statutory restriction.* Section 1319D of the Act, 12 U.S.C. 4523, prohibits the Director or any former officer or employee of FHFA who, while employed by FHFA, was compensated at a rate in excess of the lowest rate for a position classified higher than GS-15 of the General Schedule under section 5107 of title 5, United States Code, from accepting compensation from an enterprise during the two-year period beginning on the date of his or her separation from employment by FHFA.

(ii)*Notice to employees.* The DAEO shall notify employees on an annual basis of the rate of compensation that triggers the subsequent employment restriction. § 9001.102 Definitions. For purposes of this part, the term: *Affiliate* means any entity that controls, is controlled by, or is under common control with another entity. *Designated Agency Ethics Official,* or *DAEO,* as also used in 5 CFR part 2635, and “alternate DAEO” mean the individuals so designated by the Director, FHFA. The DAEO is responsible for designating agency ethics officials and ethics designees, as such terms are used in 5 CFR part 2635. The alternate DAEO acts as the DAEO in the DAEO's absence. *Director* means the Director of FHFA or his or her designee. *Employee* means an officer or employee of FHFA, including a special Government employee. For purposes of this part, it also means an individual on detail from another agency to FHFA for a period of more than 30 calendar days. *Enterprise* means the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. *Federal Home Loan Bank* or *Bank* means a Bank established under the Federal Home Loan Bank Act; the term “Federal Home Loan Banks” means, collectively, all the Federal Home Loan Banks. *Federal Home Loan Bank System* means the Federal Home Loan Banks under the supervision of the Federal Housing Finance Agency. *Regulated entity* means the Federal National Mortgage Association and any affiliate thereof; the Federal Home Loan Mortgage Corporation and any affiliate thereof; or any Federal Home Loan Bank; the term “regulated entities” means, collectively, the Federal National Mortgage Association and any affiliate thereof; the Federal Home Loan Mortgage Corporation and any affiliate thereof; and the Federal Home Loan Banks. *Safety and Soundness Act* means the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 *et seq.* ), as amended by the Housing and Economic Recovery Act of 2008 (HERA), Public Law 110-289, 122 Stat. 2654 (2008). *Security* means all interests in debt or equity instruments. The term includes, without limitation, secured and unsecured bonds, debentures, notes, securitized assets and commercial paper including loans securitized by mortgages or deeds of trust and securities backed by such instruments, as well as all types of preferred and common stock. The term encompasses current and contingent ownership interests including any beneficial or legal interest derived from a trust. Such interest includes any right to acquire or dispose of any long or short position in such securities and also includes, without limit, interests convertible into such securities, as well as options, rights, warrants, puts, calls and straddles with respect thereto. The term shall not, however, be construed to include deposit accounts, such as checking, savings, or money market deposit accounts. § 9001.103 Waivers.

(a)*General.* The DAEO may waive any provision of this part upon finding that the waiver will not result in conduct inconsistent with 5 CFR part 2635 or otherwise prohibited by law, and that application of the provision is not necessary to ensure public confidence in the impartiality and objectivity with which the programs of FHFA are administered. Each waiver shall be in writing and supported by a statement of the facts and findings upon which it is based and may impose appropriate conditions, including but not limited to requiring the employee to execute a written disqualification statement or an agreement not to acquire additional securities.

(b)*Waiver of prohibitions relating to ownership or control of securities.* The DAEO may grant a waiver permitting the employee or the employee's spouse or minor children to own or control, directly or indirectly, any security prohibited under § 9001.104, if, in addition to the standards under paragraph

(a)of this section:

(1)Extenuating circumstances exist, such as ownership or control of the security was acquired:

(i)Prior to employment with FHFA;

(ii)Through inheritance, gift, merger, acquisition, or other change in corporate structure, or otherwise without specific intent on the part of the employee, or employee's spouse or minor children, to acquire the security; or

(iii)By an employee's spouse or minor children as part of a compensation package in connection with employment or prior to marriage to the employee;

(2)The amount of the prohibited financial interest has a market value of less than the *de minimis* amount set forth in 5 CFR 2640.202(a);

(3)The employee makes a prompt and complete written disclosure of the interest; and

(4)If the employee is required to disqualify himself or herself from certain assignments, the disqualification does not unduly interfere with the full performance of the employee's duties. § 9001.104 Prohibited financial interests.

(a)*General prohibition.* This section applies to all employees, except special Government employees. Except as permitted in paragraph

(c)of this section, an employee or an employee's spouse or minor children, shall not directly or indirectly own or control securities owned, issued, guaranteed, securitized, or collateralized by a regulated entity.

(b)*Restrictions arising from third-party relationships.* If any of the entities listed in paragraphs (b)(1) through

(6)of this section owns securities that an employee is prohibited from owning directly by paragraph

(a)of this section, the employee is deemed to hold the securities indirectly. The entities are—

(1)A partnership in which the employee or employee's spouse or minor children are general partners;

(2)A partnership in which the employee or employee's spouse or minor children individually or jointly hold more than a 10 percent limited partnership interest;

(3)A closely held corporation in which the employee or employee's spouse or minor children individually or jointly hold more than a 10 percent equity interest;

(4)A trust in which the employee or employee's spouse or minor children have a legal or beneficial interest;

(5)An investment club or similar informal investment arrangement between the employee or employee's spouse or minor children and others; or

(6)Any other entity in which the employee or employee's spouse or minor children individually or jointly hold more than a 10 percent equity interest.

(c)*Exceptions to prohibition for certain interests.* Notwithstanding paragraphs

(a)and

(b)of this section, an employee or an employee's spouse or minor children may directly or indirectly own or control:

(1)A security for which a waiver has been granted pursuant to § 9001.103; and

(2)An interest in a publicly-traded or publicly-available diversified mutual fund or other collective diversified investment fund, including a widely-held pension or other retirement fund if:

(i)Neither the employee, the employee's spouse, nor the employee's minor children exercise or have the ability to exercise control over the financial interests held by the fund; and

(ii)The fund does not indicate in its prospectus the objective or practice of concentrating its investments in securities of a regulated entity or regulated entities generally, and less than 25 percent of the total holdings of the fund are comprised of securities owned, issued, guaranteed, securitized, or collateralized by one or more regulated entities.

(d)*Reporting and divestiture.* An employee must provide, in writing, to the DAEO any financial interest prohibited under paragraph

(a)of this section acquired prior to the effective date of this part or the commencement of employment with FHFA or without specific intent, as through gift, inheritance, or marriage, within 30 calendar days from the effective date of this part, commencement of employment with FHFA, or acquisition of such interest. Such financial interest must be divested within 90 calendar days from the date reported unless a waiver is granted in accordance with § 9001.103. § 9001.105 Outside employment.

(a)*Prohibited outside employment.* Employees, except special Government employees, shall not engage in:

(1)Employment with a person or entity, other than a State or local government, that is registered as a lobbyist under the Lobbying Disclosure Act of 1995 (2 U.S.C. chapter 26) and engages in lobbying activities concerning FHFA programs; or

(2)Employment with any regulated entity or with the Office of Finance of the Federal Home Loan Bank System.

(b)*Prior approval for and concurrence with other outside employment* —(1) Except as provided in paragraph (b)(2) of this section, before engaging in any outside employment that is not prohibited under paragraph

(a)of this section, with or without compensation, an employee, other than a special Government employee, must obtain written approval from his or her supervisor and the concurrence of the DAEO. Nonetheless, special Government employees remain subject to other statutory and regulatory provisions governing their outside activities, including 18 U.S.C. 203(c) and 205(c), as well as applicable provisions of 5 CFR part 2635.

(2)An employee, other than a special Government employee, who before the effective date of this part or commencement of employment with FHFA commenced engaging in outside employment that is not prohibited under paragraph

(a)of this section must request written approval from his or her supervisor and the concurrence of the DAEO within 30 calendar days of the effective date of this part or commencement of employment with FHFA. The employee may continue engaging in the outside employment while the request is under review.

(c)*Definition of outside employment.* For purposes of paragraph

(b)of this section, *outside employment* means any form of non-Federal employment or business relationship involving the provision of personal services, whether or not for compensation. It includes, but is not limited to, services as an officer, director, employee, agent, advisor, attorney, consultant, contractor, general partner, trustee, teacher, or speaker. It includes writing when done under an arrangement with another person or entity for production or publication of the written product. The definition does not include positions as trustee for a family trust for which the only beneficiaries are the employee, the employee's spouse, the employee's minor or dependent children, or any combination thereof. The definition also does not include participation in the activities of a nonprofit charitable, religious, professional, social, fraternal, educational, recreational, public service or civic organization, unless:

(1)The employee will receive compensation other than reimbursement of expenses;

(2)The organization's activities are devoted substantially to matters relating to the employee's official duties as defined in 5 CFR 2635.807(a)(2)(i)(B) through

(E)and the employee will serve as officer or director of the organization; or

(3)The activities will involve the provision of consultative or professional services. *Consultative services* means the provision of personal services by an employee, including the rendering of advice or consultation, which requires advanced knowledge in a field of science or learning customarily acquired by a course of specialized instruction and study in an institution of higher education, hospital, or similar facility. *Professional services* means the provision of personal services by an employee, including the rendering of advice or consultation, which involves application of the skills of a profession as defined in 5 CFR 2636.305(b)(1) or involves a fiduciary relationship as defined in 5 CFR 2636.305(b)(2). Note to § 9001.105(c): There is a special approval requirement set out in both 18 U.S.C. 203(d) and 205(e), respectively, for certain representational activities otherwise covered by the conflict of interest restrictions on compensation and activities of employees in claims against and other matters affecting the Government. Thus, an employee who wishes to act as agent or attorney for, or otherwise represent his or her parents, spouse, children, or any person for whom, or any estate for which, he or she is serving as guardian, executor, administrator, trustee, or other personal fiduciary in such matters must obtain the approval required by law of the Government official responsible for the employee's appointment in addition to the regulatory approval required in this section.

(d)*Procedure for requesting approval and concurrence* —(1) The approval required by paragraph

(b)of this section shall be requested by e-mail or other form of written correspondence in advance of engaging in outside employment as defined in paragraph

(c)of this section.

(2)The request for approval to engage in outside employment shall set forth, at a minimum:

(i)The name of the employer or organization;

(ii)The nature of the activity or other work to be performed;

(iii)The title of the position; and

(iv)The estimated duration of the outside employment.

(3)Upon a significant change in the nature or scope of the outside employment or in the employee's official position within FHFA, the employee must, within seven calendar days of the change, submit a revised request for approval and concurrence.

(e)*Standard for concurrence.* The DAEO may concur with the supervisor's approval required by paragraph

(b)of this section only upon his or her written determination that the outside employment is not expected to involve conduct prohibited by statute or Federal regulation, including 5 CFR part 2635 and this part.

(f)*Issuance of instructions.* The DAEO may issue written instructions governing the submission of requests for approval of and concurrence with outside employment under paragraph

(d)of this section. The instructions may exempt categories of employment from the prior approval and concurrence requirement of paragraph

(b)of this section based on a determination by the DAEO that employment within those categories of employment will generally be approved and is not likely to involve conduct prohibited by Federal law or regulation, including 5 CFR part 2635 and this part. § 9001.106 Restrictions resulting from employment of family and household members.

(a)*Disqualification of employee.* An employee may not participate in any particular matter in which a regulated entity is a party if the regulated entity employs as an employee or a consultant his or her spouse, child, parent, or sibling, or member of his or her household unless the DAEO has authorized the employee to participate in the matter using the standard set forth in 5 CFR 2635.502(d).

(b)*Reporting certain relationships.* Within 30 calendar days of the spouse, child, parent, sibling, or member of the employee's household being employed by the regulated entity, the employee shall provide in writing notice of such employment to the DAEO. § 9001.107 Other limitations.

(a)*Director and Deputy Directors.* The Director, the Deputy Director of the Division of Enterprise Regulation, the Deputy Director of the Division of Federal Home Loan Bank Regulation, and the Deputy Director for Housing Mission and Goals are subject to additional financial interest limitations as set forth in section 1312(g) of the Safety and Soundness Act, 12 U.S.C. 4512(g).

(b)*Financial interests in Bank members and other financial institutions.* If an employee or the spouse or minor children of the employee directly or indirectly owns a financial interest in a member of a Bank or in a financial institution such as a mortgage bank, mortgage broker, bank, thrift, or other financial institution that originates, insures, or services mortgages that are owned, guaranteed, securitized, or collateralized by a regulated entity, the employee is cautioned not to violate the statutory prohibition against financial conflicts of interest set forth in 18 U.S.C. 208. The government-wide *de minimis* and other exceptions set forth in 5 CFR 2640.202 are applicable to the ownership or control of interests in such financial institutions. Employees are encouraged to seek a determination from the DAEO as to whether the financial interest in the member of the Bank or in the financial institution creates a financial conflict of interest or an appearance of a conflict of interest and whether the employee should disqualify himself or herself from participating in an official capacity in a particular matter involving the financial institution. § 9001.108 Prohibited recommendations. Employees shall not make any recommendation or suggestion, directly or indirectly, concerning the acquisition, sale, or divestiture of securities of a regulated entity. § 9001.109 Prohibited purchase of assets. An employee or the employee's spouse or minor children shall not purchase, directly or indirectly, any real or personal property from a regulated entity, unless it is sold at public auction or by other means which would assure that the selling price is the asset's fair market value. Dated: August 3, 2010. Edward J. DeMarco, Acting Director, Federal Housing Finance Agency. Approved: August 13, 2010. Robert I. Cusick, Director, Office of Government Ethics. [FR Doc. 2010-21324 Filed 8-26-10; 8:45 am]

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