Rule2026-00685
Removing Unnecessary Department-Specific Regulations Related to Employee Responsibilities and Conduct
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 15, 2026
Effective
January 15, 2026
Issuing agencies
Commerce Department
Abstract
By this rule, the Department of Commerce (the "Department") eliminates regulations that relate to the responsibilities and conduct of the Department's employees. None of the regulations at Part 0 is required by statute and, as a whole, Part 0 has been supplanted and rendered obsolete by various Executive branch-wide regulations in Title 5 of the Code of Federal Regulations and Department Administrative Orders ("DAOs"). The removal of Part 0 is necessary to streamline the Department's regulations and to eliminate unnecessary regulatory complexity and clutter. The intended effect of this action is to reduce the potential for confusion regarding employee conduct and to promote administrative efficiency.
Full Text
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<title>Federal Register, Volume 91 Issue 10 (Thursday, January 15, 2026)</title>
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[Federal Register Volume 91, Number 10 (Thursday, January 15, 2026)]
[Rules and Regulations]
[Pages 1674-1676]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00685]
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DEPARTMENT OF COMMERCE
15 CFR Part 0
[Docket ID 260107-0010]
RIN 0605-AA75
Removing Unnecessary Department-Specific Regulations Related to
Employee Responsibilities and Conduct
AGENCY: Office of the Secretary, Department of Commerce.
ACTION: Final rule.
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SUMMARY: By this rule, the Department of Commerce (the ``Department'')
eliminates regulations that relate to the responsibilities and conduct
of the Department's employees. None of the regulations at Part 0 is
required by statute and, as a whole, Part 0 has been supplanted and
rendered obsolete by various Executive branch-wide regulations in Title
5 of the Code of Federal Regulations and Department Administrative
Orders (``DAOs''). The removal of Part 0 is necessary to streamline the
Department's regulations and to eliminate unnecessary regulatory
complexity and clutter. The intended effect of this action is to reduce
the potential for confusion regarding employee conduct and to promote
administrative efficiency.
DATES: The rule is effective January 15, 2026.
FOR FURTHER INFORMATION CONTACT: Daniel Sweeney, Senior Counsel, Office
of the General Counsel, at (202) 482-1395.
SUPPLEMENTARY INFORMATION:
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I. Discussion
The regulations at 15 CFR part 0 govern the responsibilities and
conduct of the Department's employees. Such regulations are generally
authorized by 5 U.S.C. 301, which provides that ``[t]he head of an
Executive department . . . may prescribe regulations for the government
of his department, the conduct of its employees, the distribution and
performance of its business, and the custody, use, and preservation of
its records, papers, and property.''
A. Regulatory History
The Department first established a comprehensive framework for
employee conduct in a final rule published on November 2, 1967 (32 FR
15222). That rule was issued to conform the Department's policies with
government-wide standards prescribed in Executive Order 11222 of May 8,
1965, and regulations issued by the Civil Service Commission, now
codified at 5 CFR part 735. The 1967 rule aimed to address ethical and
administrative challenges inherent to the Department's functions by
setting forth specific policies and procedures for employee conduct.
Key provisions included establishing standards to prevent conflicts of
interest, or the appearance of such conflicts, and implementing a
requirement for certain employees to submit statements of their outside
employment and financial interests. The 1967 rule also established an
administrative structure for enforcement, outlining the
responsibilities of individual employees, supervisors, and the
Department's operating units in upholding these ethical standards.
Over time, the Executive branch developed more centralized,
government-wide ethics regulations. Following the passage of the Ethics
in Government Act of 1978, the Office of Government Ethics (``OGE'')
promulgated comprehensive regulations governing financial disclosure
and standards of ethical conduct, codified at 5 CFR parts 2634 and
2635, respectively. In a final rule published on May 9, 2003 (68 FR
24879), the Department amended its regulations to remove its own
internal conduct provisions that were rendered obsolete by, or were
duplicative of, the new OGE regulations. The 2003 amendment removed and
reserved several subparts and sections of 15 CFR part 0 and revised
Sec. 0.735-2 to direct employees to the controlling Executive branch-
wide standards.
In a final rule published on August 11, 2006 (71 FR 46073), the
Office of Personnel Management (``OPM'') updated certain regulations
governing the responsibilities and conduct of all Executive branch
employees, codified at 5 CFR part 735. And, in a final rule published
on June 25, 2008 (73 FR 36186), OGE issued regulations governing post-
employment conflict of interest violations by former Executive branch
employees, codified at 5 CFR part 2641.
B. Description of the Regulations Being Amended
Part 0 currently consists of five subparts: Subpart A, Subpart D,
Subpart F, Subpart G, and Subpart H. (Subparts B, C, and E are
currently reserved.)
Subpart A contains the ``General Provisions'' for Part 0.
Specifically, it addresses the purpose of Part 0, see 15 CFR 0.735-1;
it cross-references some of the applicable Executive branch-wide
regulations governing employee responsibilities and conduct, see 15 CFR
0.735-2; it clarifies the applicability of Part 0 to all persons
included within the term ``employee,'' see 15 CFR 0.735-3; and it sets
forth various definitions (including for the term ``employee''), see 15
CFR 0.735-4.
Subpart D sets forth regulatory limitations upon employee conduct.
In particular, it discusses, in broad terms, the applicability of
certain statutory limitations, see 15 CFR 0.735-10; it addresses the
issue of employee indebtedness, see 15 CFR 0.735-16; it sets forth
certain restrictions on activities related to gambling, see 15 CFR
0.735-17; it restricts certain general categories of conduct that are
prejudicial to the government, see 15 CFR 0.735-18; and it requires
each employee to report any use or attempted use of undue influence,
see 15 CFR 0.735-19.
Subpart F sets forth rules government supplementary regulations
related to employee conduct. Specifically, it acknowledges that the
Assistant Secretary for Administration and each individual operating
unit may set forth additional regulations related to employee conduct.
See 15 CFR 0.735-32, 0.735-33. It also sets forth a rule regarding the
effective date of any supplementary regulations. See 15 CFR 0.735-34.
Subpart G is titled ``Administration.'' It identifies the
responsibilities of employees and of operating units within the
Department. See 15 CFR 0.735-35, 0.735-36. It also sets forth
requirements related to (i) the review of statements of employment and
financial statements, see 15 CFR 0.735-37; (ii) the availability of
employee counseling, see 15 CFR 0.735-38; (iii) authorizations for
certain conduct, see 15 CFR 0.735-39; (iv) disciplinary and remedial
actions, see 15 CFR 0.735-40; and (v) inquiries and exceptions, see 15
CFR 0.735-41.
Lastly, Subpart H sets forth the rules governing disciplinary
actions for post-employment conflict of interest violations.
Specifically, it contains regulatory provisions (i) explaining its
scope, see 15 CFR 0.735-42; (ii) requiring all employees to report any
known conflict of interest violations by former employees, see 15 CFR
0.735-43(a); (iii) setting forth administrative procedures for the
various stages of disciplinary actions, see 15 CFR 0.735-43(b)-(d),
0.735-44, 0.735-45, 0.735-46, 0.735-47, 0.735-48, 0.735-49; and (iv)
acknowledging the availability of judicial review, see 15 CFR 0.735-50.
II. Regulatory Amendments
By this rule, the Department is eliminating 15 CFR part 0 in its
entirety for the following reasons.
As an initial matter, none of the regulatory provisions within Part
0 is specifically required by statute. The lack of a specific statutory
mandate, by itself, suffices to warrant reconsideration of Part 0, as
the Department is committed to ensuring that its regulations do not
exceed the scope of its lawful authority.
And, upon careful reconsideration, the Department has determined
that the regulatory provisions at Part 0 are not justified by any
compelling interest. As discussed above, since the Department first
established a regulatory framework governing employee conduct, numerous
Executive branch-wide regulations governing employee conduct have been
promulgated by OMB and OGE. See, e.g., 5 CFR part 735 (``Employee
Responsibilities and Conduct''), 5 CFR part 2634 (``Executive Branch
Financial Disclosure, Qualified Trusts, and Certificates of
Divestiture''), 5 CFR part 2635 (``Standards of Ethical Conduct for
Employees of the Executive Branch''), 5 CFR part 2641 (``Post-
Employment Conflict of Interest Restrictions''). The Department has
also since issued numerous DAOs related to employee conduct. See, e.g.,
DAO 202-250 (``Delegation of Authority for Human Resources
Management''); DAO 202-299 (``Clearance of Separating Employees''); DAO
202-751 (``Discipline''); DAO 203-9 (``Gifts''). The Department is
satisfied that these Executive branch-wide regulations, their
underlying statutory authorities, and the Department's numerous DAOs
adequately address employee conduct and render Part 0 substantially
obsolete. But even apart from those other authorities, certain
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provisions within Part 0 are obsolete by themselves. For example, Sec.
0.735-4(a)(1)(i) references the Environmental Science Services
Administration--an agency that ceased to exist back in 1970. And
certain other provisions within Part 0 simply restate underlying
statutory law, such as Sec. 0.735-50 (with respect to availability of
judicial review).
Furthermore, the continued maintenance of Part 0 inevitably poses
some risk of distracting from--and causing confusion about the
application of--the Executive branch-wide regulations on employee
conduct, as well as the related statutory requirements and
restrictions.
Overall, eliminating Part 0 would simplify both the Department's
own regulations and the broader body of regulations and authorities
pertaining to the conduct of Executive branch employees, and the
Department is satisfied that the value of proceeding with this
elimination outweighs the value currently added by Part 0.
III. Regulatory Certifications
A. Administrative Procedure Act
The Department issues this final rule without prior public notice
and comment pursuant to the Administrative Procedure Act's exception
for rules ``relating to agency management or personnel or to public
property, loans, grants, benefits, or contracts.'' 5 U.S.C. 553(a)(2).
This rule falls into that exception, as all of the affected regulatory
provisions pertain to agency management and/or personnel.
B. Executive Orders 12866, 14192, 13132
The Office of Management and Budget has determined this rule is not
significant pursuant to E.O. 12866. This rule is an E.O. 14192
deregulatory action. This rule does not contain policies having
federalism implications as the term is defined in E.O. 13132.
C. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public participation are not required to be given for this rule by 5
U.S.C. 553(a)(2), the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly,
no regulatory flexibility analysis is required, and none has been
prepared.
D. Paperwork Reduction Act
This rule will not impose additional reporting or recordkeeping
requirements under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501,
et seq.
List of Subjects for 15 CFR Part 0
Administrative practice and procedure, Authority delegations
(Government agencies), Conflict of interests, Government employees,
Organization and functions (Government agencies).
Dated: January 13, 2026.
Paul Dabbar,
Deputy Secretary of Commerce.
PART 0--[REMOVED AND RESERVED]
0
Accordingly, for the reasons set forth above and under the authority of
5 U.S.C. 301, part 0 of title 15 of the Code of Federal Regulations is
removed and reserved.
[FR Doc. 2026-00685 Filed 1-14-26; 8:45 am]
BILLING CODE 3510-BW-P
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</html>Indexed from Federal Register on January 15, 2026.
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