2013 Trust Documents 83-I Supporting Statement

U.S. Office of Government Ethics
OMB 83-I Supporting Statement (2013)
EXECUTIVE BRANCH QUALIFIED TRUST DOCUMENTS
A. Justification
1.- 2. The Office of Government Ethics (OGE) is the supervising ethics office for the
executive branch of the Federal Government under the Ethics in Government Act of 1978.
Presidential nominees to executive branch positions subject to Senate confirmation and any other
executive branch officials may seek OGE approval for Ethics in Government Act qualified blind
or diversified trusts 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. § 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 each with its own related
reporting model certificates or model trust documents. 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 (as codified in appendixes A-C of part 2634) are the:
(A) Certificate of Independence; and
(B) Certificate of Compliance.
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) Model Qualified 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).
3. These information collections serve as model documents and are often redrafted and
tailored by particular users. They are submitted to OGE in hardcopy, though often based on
electronic word processing capabilities.
4. These documents are the source of information concerning Federal officials' qualified
trust interests for the purpose of OGE's executive branch ethics review in this area.
5. These documents do not have a significant impact upon small businesses or other
small entities.
6. All of the information required on the related trust certificates and model documents is
mandated directly by law or in the OGE regulation and is necessary for proper reporting and
review by OGE of qualified trust arrangements. See also item Nos. 1 - 2 above.
7. No special circumstances exist that would be inconsistent with the guidelines for this
item.
8. OGE did not consult with persons outside the agency to obtain their views concerning
the documents. However, OGE sought public comment on the documents in its first round
Federal Register notice, proposing non-substantive modifications to update information provided
on the form. See 77 FR 76293-76294 (December 27, 2012) for which the public comment
period closed on February 25, 2013. OGE did not receive any requests for copies of the
documents or comments on the forms or proposed modifications. OGE again sought public
comment in the second round Federal Register notice. See 78 FR 40144-40146 (July 3, 2013).
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No comments were received by the Office of Management and Budget (OMB) or OGE in
response to the second round Federal Register notice.
9. Not applicable.
10. Most of the various qualified trust certificates and model documents in use under the
pertinent provisions of the Ethics in Government Act and the 5 CFR part 2634 regulation are
publicly available pursuant to the special Ethics in Government Act access procedures
(see § 2634.603 of OGE's regulation), with the exception of the model qualified blind trust
communications and the model confidentiality agreement provisions. See items 1 - 2ii(A), (I)
and (J) above. These three completed types of documents contain sensitive confidential
information under the Ethics in Government Act and other pertinent laws including the Freedom
of Information Act and the Privacy Act. Moreover, once a qualified trust is established, the
underlying trust information itself (other than the initial portfolio as reported for the OGE Form
278 Executive Branch Personnel Public Financial Disclosure Report if it concerns a reportable
high-level executive branch official) is not available to the public on the same basis.
In 2003, OGE updated the OGE/GOVT-1 system of records notice (covering Public
Financial Disclosure Reports and other name-retrieved ethics program records).
See
68 FR 3097-3109 (January 22, 2003), as corrected at 68 FR 24744 (May 8, 2003). OGE made
additional modifications to the routine uses in 2011 and 2012. See 76 FR 24489-24490
(May 2, 2011) and 77 FR 45353 (July 31, 2012). OGE proposes to modify the ten model trust
documents to reflect these changes. However, these Privacy Act updates have not been
incorporated at this time into the current version of the Privacy Act Statement, codified at
5 CFR 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.
11. There are no sensitive questions on these documents. All of the information required
in the regulation and on the related trust certificates and model documents is mandated directly
by law or as determined in the OGE regulation to be necessary for proper reporting and review
by OGE of qualified trust arrangements of covered executive branch officials.
12. At the present time, there are no active filers using the trust model certificates and
documents. However, OGE is submitting 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 2013-2015. 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 47799-47801 (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. OGE is reporting zero for the total annual burden hours. After consultation
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with OMB, OGE has reexamined its estimating methodology and modified the hour burden to
reflect 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
initially setting up such trusts are typically incoming private citizen Presidential nominees. The
nominee respondents themselves incur no hour burden in using the model trust documents even
after they take office, but they do incur costs (see #13 below). The time burden listed directly
below is based on the amount of time imposed on the trust administrators or other private
representatives. The detailed paperwork estimates below for the various trust certificates and
model documents are based primarily on OGE's experience with administration of the qualified
trust program:
i. Trust Certificates:
A. Certificate of Independence:
Total Filers (Executive Branch): 5
Private Citizens (100%): 5
OGE-processed Certificates (Private Citizens): 5
Private Citizen Burden Hours (20 minutes/certificate): 2
B. Certificate of Compliance:
Total Filers (Executive Branch): 10
Private Citizens (100%): 10
OGE-processed Certificates (Private Citizens): 10
Private Citizen Burden Hours (20 minutes/certificate): 3
ii. Model Qualified Trust Documents:
A. Blind Trust Communications:
Total Users (Executive Branch): 5
Private Citizens (100%): 5
OGE-processed Drafts (Private Citizens): 25 (based on 5 communications
per user, per year)
Private Citizen Burden Hours (20 minutes/communication): 8
B.

Model Qualified Blind Trust:
Total Users (Executive Branch): 2
Private Citizens (100%): 2
OGE-processed Drafts (Private citizens): 2
Private Citizen Burden Hours (100 hours/model): 200

C. Model Qualified Diversified Trust:
Total Users (Executive Branch): 1
Private Citizens (100%): 1
OGE-processed Drafts (Private Citizens): 1
Private Citizen Burden Hours (100 hours/model): 100
D.-H. Of the five remaining model qualified trust documents:
Total Users (Executive Branch): 2
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Private Citizens (100%): 2
OGE-processed Models (Private Citizens): 2
Private Citizen Burden Hours (100 hours/model): 200
I.-J. Of the two model confidentiality agreements:
Total Users (Executive Branch): 1
Private Citizens (100%): 1
OGE-processed Agreements (Private Citizens): 1
Private Citizen Burden Hours (50 hours/agreement): 50
13. OGE is reporting $1,000,000 for the estimate of the annual cost burden to
respondents. After consultation with OMB, OGE reexamined its estimating methodology to
reflect that all of the respondents, or those who use the model documents for guidance, are
private trust administrators or other private representatives. Respondents, typically incoming
private citizen Presidential nominees who then assume their Government positions, hire private
trust administrators to set up and maintain their qualified blind and diversified trusts. Typically,
the fee structure of trust administrators or other private representatives is based on a percentage
of assets. The $1,000,000 figure is based on OGE’s estimate of five trusts with combined total
assets of $100,000,000. OGE estimates that the average percentage fee would be one percent;
therefore, one percent of $100,000,000 equals $1,000,000.
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 reporting to OMB the full $1,000,000 estimate for paperwork clearance
purposes.
14. The estimate of annualized costs to the executive branch of the Federal Government
is $32,000. Virtually all costs are labor costs associated with OGE employees reviewing the
various documents.
15. Not applicable.
16. Not applicable.
17. OGE requests renewed permission not to display the expiration date on the model
qualified trust certificates and documents to allow their continued use beyond the three
additional years being requested, if needed and further cleared by the Office of Information and
Regulatory Affairs.
18. Certification items (c), (f) and (i) are not applicable to this information collection.
B. Collection of Information Employing Statistical Methods
Not applicable. This collection does not employ statistical methods.

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