[Federal Register: September 17, 2009 (Volume 74, Number 179)]
[Notices]
[Page 47799-47801]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se09-44]
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OFFICE OF GOVERNMENT ETHICS
Proposed Collection; Comment Request for Unmodified Qualified
Trust Model Certificates and Model Trust Documents
AGENCY: Office of Government Ethics (OGE).
ACTION: Notice.
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SUMMARY: The Office of Government Ethics is publishing this first round
notice and seeking comment on the twelve executive branch OGE model
certificates and model documents for qualified trusts. OGE intends to
submit these forms for extension of approval for three years by the
Office of Management and Budget (OMB) under the Paperwork Reduction
Act. OGE is proposing no changes to these forms at this time. As in the
past, OGE will notify filers of an update to the privacy information
contained in the existing forms, and will post a notification thereof
on its Web site.
DATES: Written comments by the public and the agencies on this proposed
extension are invited and must be received by November 16, 2009.
ADDRESSES: You may submit comments to OGE on this paperwork notice by
any of the following methods:
E-mail: usoge@oge.gov. (Include reference to ``Qualified trust
model certificates and model trust documents paperwork comment'' in the
subject line of the message).
Fax: 202-482-9237.
Mail, Hand Delivery/Courier: Office of Government Ethics, Suite
500, 1201
[[Page 47800]]
New York Avenue, NW., Washington, DC 20005-3917, Attention: Paul D.
Ledvina, Records Officer.
FOR FURTHER INFORMATION CONTACT: Mr. Ledvina at the Office of
Government Ethics; telephone: 202-482-9247; TTY: 800-877-8339; Fax:
202-482-9237; E-mail: pledvina@oge.gov. The model certificates of
independence and compliance for qualified trusts are codified in
appendixes A, B, and C to 5 CFR part 2634. Copies of the model trust
documents are available as one set of OGE publications through the
Ethics Documents section of OGE's Web site at http://www.usoge.gov.
Copies of the qualified trust model certificates and the model trust
documents may also be obtained, without charge, by contacting Mr.
Ledvina.
SUPPLEMENTARY INFORMATION: The Office of Government Ethics is planning
to submit, after this first round notice and comment period, all twelve
qualified trust model certificates and model documents described below
(all of which are included under OMB paperwork control number 3209-
0007) for a three-year extension of approval by OMB under the Paperwork
Reduction Act (44 U.S.C. chapter 35). At that time, OGE will publish a
second paperwork notice in the Federal Register to inform the public
and the agencies. The current paperwork approval, last granted by OMB
in 2007, for the model certificates and model trust documents is
scheduled to expire at the end of October 2009. OGE is proposing no
changes to the twelve qualified trust certificates and model documents
at this time.
In 2003, OGE updated the OGE/GOVT-1 system of records notice
(covering SF 278 Public Financial Disclosure Reports and other name-
retrieved ethics program records), including the revision of one of the
existing routine uses and the addition of the three new routine uses.
As a result, the Privacy Act Statement on each of the qualified trust
model certificates and documents, which includes paraphrases of the
routine uses, is affected. OGE has not incorporated this update into
the qualified trust model certificates and documents at this time,
since a more thorough revision of these information collections is
planned within the next three years. Upon distribution of the trust
model certificates and documents, OGE will continue to inform users of
the update to the Privacy Act Statement. OGE will also post a
notification thereof on its Web site to accompany the model
certificates and documents.
OGE is the supervising ethics office for the executive branch of
the Federal Government under the Ethics in Government Act of 1978
(Ethics Act). Presidential nominees to executive branch positions
subject to Senate confirmation and any other executive branch officials
may seek OGE approval for Ethics Act qualified blind or diversified
trusts as one means to be used to avoid conflicts of interest.
OGE is the sponsoring agency for the model certificates and model
trust documents for qualified blind and diversified trusts of executive
branch officials set up under section 102(f) of the Ethics Act, 5
U.S.C. app. Sec. 102(f), and OGE's implementing financial disclosure
regulations at subpart D of 5 CFR part 2634. The various model
certificates and model trust documents are utilized by OGE and
settlors, trustees and other fiduciaries in establishing and
administering these qualified trusts.
There are two categories of information collection requirements
that OGE plans to submit for renewed paperwork approval, each with its
own related reporting model certificates or model trust documents which
are subject to paperwork review and approval by OMB. The OGE regulatory
citations for these two categories, together with identification of the
forms used for their implementation, are as follows:
i. Qualified trust certifications--5 CFR 2634.401(d)(2),
2634.403(b)(11), 2634.404(c)(11), 2634.406(a)(3) and (b), 2634.408,
2634.409 and appendixes A and B to part 2634 (the two implementing
forms, the Certificate of Independence and Certificate of Compliance,
are codified respectively in the cited appendixes; see also the Privacy
Act and Paperwork Reduction Act notices thereto in appendix C); and
ii. Qualified trust communications and model provisions and
agreements--5 CFR 2634.401(c)(1)(i) and (d)(2), 2634.403(b),
2634.404(c), 2634.408 and 2634.409 (the ten implementing forms are the:
(A) Blind Trust Communications (Expedited Procedure for Securing
Approval of Proposed Communications); (B) Model Qualified Blind Trust
Provisions; (C) Model Qualified Diversified Trust Provisions; (D) Model
Qualified Blind Trust Provisions (For Use in the Case of Multiple
Fiduciaries); (E) Model Qualified Blind Trust Provisions (For Use in
the Case of an Irrevocable Pre-Existing Trust); (F) Model Qualified
Diversified Trust Provisions (Hybrid Version); (G) Model Qualified
Diversified Trust Provisions (For Use in the Case of Multiple
Fiduciaries); (H) Model Qualified Diversified Trust Provisions (For Use
in the Case of an Irrevocable Pre-Existing Trust); (I) Model
Confidentiality Agreement Provisions (For Use in the Case of a
Privately Owned Business); and (J) Model Confidentiality Agreement
Provisions (For Use in the Case of Investment Management Activities).
As noted above, blank copies of each of these model documents are
posted on OGE's Web site.
The communications formats and the confidentiality agreements
(items ii.(A), (I) and (J) above), once completed, would not be
available to the public because they contain sensitive, confidential
information. All the other completed model trust certificates and model
trust documents (except for any trust provisions that relate to the
testamentary disposition of trust assets) are retained and made
publicly available based upon a proper Ethics Act request (by filling
out an OGE Form 201 access form) until the periods for retention of all
other reports (usually the SF 278 Public Financial Disclosure Reports)
of the individual establishing the trust have lapsed (generally six
years after the filing of the last other report). See 5 CFR
2634.603(g)(2) of OGE's executive branch financial disclosure
regulation.
The Office of Government Ethics administers the qualified trust
program for the executive branch. At the present time, there are no
active filers using the trust model certificates and documents, in part
reflecting the routine departure of high-level filers from the previous
Administration. However, OGE intends to submit to OMB a request for
extension of approval for two reasons. First, under OMB's implementing
regulations for the Paperwork Reduction Act, at 5 CFR 1320.3(c)(4)(i),
any recordkeeping, reporting or disclosure requirement contained in a
sponsoring agency rule of general applicability is deemed to meet the
minimum threshold of ten or more persons. Second, OGE does anticipate
possible limited use of these forms during the forthcoming three-year
period 2010-2012. Therefore, the estimated burden figures, representing
branchwide implementation of the forms, will remain the same as
previously reported by OGE in its prior first and second round
paperwork renewal notice for the trust forms in 2007 (72 FR 27132-27134
(May 14, 2007) and 72 FR 46489-46490 (August 20, 2007)). The estimate
is based on the amount of time imposed on a trust administrator or
private representative.
i. Trust Certificates:
A. Certificate of Independence: Total filers (executive branch): 5;
private citizen filers (100%): 5; private citizen burden hours (20
minutes/certificate): 2.
[[Page 47801]]
B. Certificate of Compliance: Total filers (executive branch): 10;
private citizen filers (100%): 10; private citizen burden hours (20
minutes/certificate): 3; and
ii. Model Qualified Trust Documents:
A. Blind Trust Communications: Total users (executive branch): 5;
private citizen users (100%): 5; communications documents (private
citizens): 25 (based on an average of five communications per user, per
year); private citizen burden hours (20 minutes/communication): 8.
B. Model Qualified Blind Trust: Total users (executive branch): 2;
private citizen users (100%): 2; private citizen burden hours (100
hours/model): 200.
C. Model Qualified Diversified Trust: Total users (executive
branch): 1; private citizen users (100%): 1; private citizen burden
hours (100 hours/model): 100.
D.-H. Of the five remaining model qualified trust documents: total
users (executive branch): 2; private citizen users (100%): 2; private
citizen burden hours (100 hours/model): 200.
I.-J. Of the two model confidentiality agreements: total users
(executive branch): 1; private citizen users (100%): 1; private citizen
burden hours (50 hours/agreement): 50.
However, the total annual reporting hour burden on filers
themselves is zero and not the 563 hours estimated above because OGE's
estimating methodology reflects the fact that all respondents hire
private trust administrators or other private representatives to set up
and maintain the qualified blind and diversified trusts. Respondents
themselves, typically incoming private citizen Presidential nominees,
therefore incur no hour burden. The estimated total annual cost burden
to respondents resulting from the collection of information is
$1,000,000. Those who use the model documents for guidance are private
trust administrators or other private representatives hired to set up
and maintain the qualified blind and diversified trusts of executive
branch officials who seek to establish such qualified trusts. The cost
burden figure is based primarily on OGE's knowledge of the typical
trust administrator fee structure (an average of 1 percent of total
assets) and OGE's experience with administration of the qualified trust
program. The $1,000,000 annual cost figure is based on OGE's estimate
of an average of five possible active trusts anticipated to be under
administration for each of the next two years with combined total
assets of $100,000,000. However, OGE notes that the $1,000,000 figure
is a cost estimate for the overall administration of the trusts, only a
portion of which relates to information collection and reporting. For
want of a precise way to break out the costs directly associated with
information collection, OGE is continuing to report to OMB the full
$1,000,000 estimate for paperwork clearance purposes.
Public comment is invited on each aspect of the model qualified
trust certificates and model trust documents, and underlying regulatory
provisions, as set forth in this notice, including specific views on
the need for and practical utility of this set of collections of
information, the accuracy of OGE's burden estimate, the potential for
enhancement of quality, utility and clarity of the information
collected, and the minimization of burden (including the use of
information technology).
Comments received in response to this notice will be summarized
for, and may be included with, the OGE request for extension of the OMB
paperwork approval for the set of the various existing qualified trust
model certificates, the model communications package, and the model
trust documents. The comments will also become a matter of public
record.
Approved: September 4, 2009.
Robert I. Cusick,
Director, Office of Government Ethics.
[FR Doc. E9-22266 Filed 9-16-09; 8:45 am]
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