[Federal Register: August 20, 2007 (Volume 72, Number 160)]
[Notices]               
[Page 46489-46490]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20au07-70]                         

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OFFICE OF GOVERNMENT ETHICS

 
Agency Information Collection Activities; Submission for OMB 
Review; 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 second 
round notice and requesting 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 (up to two 
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 September 19, 2007.

ADDRESSES: Comments should be sent to Brenda Aguilar, OMB Desk Officer 
for OGE, Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 
Washington, DC 20503; Telephone: 202-395-7316; FAX: 202-395-6974.

FOR FURTHER INFORMATION CONTACT: Paul D. Ledvina, Records Officer, 
Information Resources Management Division at the Office of Government 
Ethics; Telephone: 202-482-9281; TDD: 202-482-9293; FAX: 202-482-9237; 
E-mail: pdledvin@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 
through the Forms, Publications & Other Ethics Documents section of 
OGE's Web site at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=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 intends to 
submit, shortly after this notice, 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 two-year 
extension of approval by OMB under the Paperwork Reduction Act (44 
U.S.C. chapter 35). The current paperwork approval for the model 
certificates and model trust documents is scheduled to expire at the 
end of September 2007. OGE is proposing no changes to the twelve 
qualified trust certificates and model trust documents at this time.

Privacy Act Statement

    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 addition of the three 
new routine uses and the modification of one of the existing routine 
uses (the seventh one listed on the model trust forms). See 68 FR 3097-
3109 (January 22, 2003), as corrected at 68 FR 24744 (May 8, 2003). 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 two 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.

Model Trust Form Users

    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. 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.

Model Trust Forms and Documents

    There are two categories of information collection requirements 
that OGE plans to submit for renewed paperwork approval, each with its 
own related reporting model trust 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)

[[Page 46490]]

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 publicly available based 
upon a proper Ethics Act request (by filling out an OGE Form 201 access 
form).

Reporting Burden

    The Office of Government Ethics administers the qualified trust 
program for the executive branch. Therefore, the estimated burden 
figures provided below represent branchwide implementation of the 
forms. The estimated hour burden, which remains the same as last 
indicated by OGE in its prior second round paperwork renewal notice in 
2005 (70 FR 31471-31472 June 1, 2005), 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.
    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 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 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.

Consideration of Comments

    On May 14, 2007, OGE published a first round notice of its intent 
to request paperwork clearance for the proposed unmodified qualified 
trust certificates and model trust documents. See 72 FR 27132-27134. 
OGE received only one response to that notice, which was critical of 
the Government, and provided no specific comment about the proposed 
renewal of these documents.
    In this second notice, public comment is again invited on the 
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).
    The Office of Government Ethics, in consultation with OMB, will 
consider all comments received, which will become a matter of public 
record.

    Approved: August 13, 2007.
Robert I. Cusick,
Director, Office of Government Ethics.
[FR Doc. E7-16305 Filed 8-17-07; 8:45 am]

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