[Federal Register Volume 78, Number 128 (Wednesday, July 3, 2013)]
[Notices]
[Pages 40144-40146]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15888]


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OFFICE OF GOVERNMENT ETHICS


Agency Information Collection Activities; Submission for OMB 
Review; Proposed Collection; Comment Request for Modified Qualified 
Trust Model Certificates and Model Trust Documents

AGENCY: Office of Government Ethics (OGE).

ACTION: Notice.

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SUMMARY: The U.S. Office of Government Ethics (OGE) 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 to the Office of Management and 
Budget (OMB) for review and approval of a three-year extension under 
the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35). OGE is 
proposing minor changes to update these forms.

DATES: Written comments by the public and the agencies on this proposed 
extension are invited and must be received on or before August 2, 2013.

ADDRESSES: You may submit comments on this paperwork notice to the 
Office of Management and Budget, Attn: Desk Officer for OGE, via fax at 
202-395-6974 or email at OIRA_Submission@omb.eop.gov.

FOR FURTHER INFORMATION CONTACT: Paul D. Ledvina, Agency Clearance 
Officer at the U.S. Office of Government Ethics; telephone: 202-482-
9247; TTY: 800-877-8339; FAX: 202-482-9237; Email: pledvina@oge.gov. 
The model Certificate of Independence and model Certificate of 
Compliance for qualified trusts are codified in appendixes A and B to 5 
CFR part 2634. Appendix C of 5 CFR part 2634 provides the Privacy Act 
Statement, Public Burden Statement and Paperwork Reduction Act 
Statement for the model certificates. Copies of the proposed modified 
model trust documents may be obtained, without charge, by contacting 
Mr. Ledvina.

SUPPLEMENTARY INFORMATION: The Office of Government Ethics intends to 
submit, shortly after this second round notice, all twelve qualified 
trust model certificates and model documents described below (all of 
which are

[[Page 40145]]

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). The current paperwork approval for the model 
certificates and model trust documents, last granted by OMB in 2010, is 
scheduled to expire at the end of March 2013. OGE is proposing no 
changes to the two model qualified trust certificates and minor changes 
to the ten model trust documents at this time. The proposed non-
substantive changes will update information in the forms to reflect 
OGE's recent amendments to the executive branch regulation regarding 
qualified trusts in subparts D, E, and Appendixes A and B of 5 CFR part 
2634. See 77 FR 39123-39150 (July 2, 2012). Other changes will update 
agency telephone and FAX contact numbers, and provide an updated 
Privacy Act Statement on the model trust documents reflecting changes 
made to the OGE/GVT-1 System of Records, 2003-2012. See 68 FR 3097-3109 
(January 22, 2003), as corrected at 68 FR 24744 (May 8, 2003), 76 FR 
24489-24490 (May 2, 2011) and 77 FR 45353 (July 31, 2012). However, 
these Privacy Act updates to OGE/GVT-1 have not been incorporated into 
the current version of the Privacy Act Statement, codified at CFR part 
2634 appendix C, covering the Certificate of Independence and 
Certificate of Compliance, 5 CFR part 2634 appendixes A and B. OGE will 
continue to inform users of the certificates of the updates to the 
Privacy Act Statement.
    OGE is the supervising ethics office for the executive branch of 
the Federal Government under the Ethics in Government Act of 1978 
(EIGA). Presidential nominees to executive branch positions subject to 
Senate confirmation and any other executive branch officials may seek 
OGE approval for EIGA 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 in 
Government 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 2634.404(f) and (g), 
2634.405(c) and (d), 2634.407, 2634.408(d)(4), 2634.410, 2634.414 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); and
    ii. Qualified trust communications and model provisions and 
agreements--5 CFR 2634.404(f), 2634.407(a), 2634.408(a)-(c), 2634.407 
and 2634.414 (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)).
    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 request under EIGA (by filling 
out an OGE Form 201 access form) until the periods for retention of all 
other reports (usually the OGE Form 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 U.S. 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. 
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 2013-2016. 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 2009 (74 FR 47799-4780 
(September 17, 2009) and 74 FR 62780-62782 (December 1, 2009)). 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.
    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.

[[Page 40146]]

    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 three 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.
    On December 27, 2012, OGE published a first round notice of its 
intent to request paperwork clearance for the proposed unmodified 
qualified trust certificates and modified model trust documents. See 77 
FR 76293-76294. OGE did not receive any responses to that notice.
    In this second notice, public comment is again 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).

    Approved: June 27, 2013.
Walter M. Shaub, Jr.,
Director, Office of Government Ethics.
[FR Doc. 2013-15888 Filed 7-2-13; 8:45 am]
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