NOTE: COMMENTS REGARDING ANY FEDERAL REGISTER NOTICE MUST BE SENT TO THE ADDRESS INDICATED IN THE DOCUMENT. ANY COMMENTS ON THE RAPID INFORMATION BULLETIN BOARD SYSTEM (RIBBS) ABOUT ANY FEDERAL REGISTER NOTICES WILL NOT BE USED OR CONSIDERED IN THE COURSE OF ANY RULE MAKING. [Page 47241-47245] From the Federal Register Online via GPO Access [wais.access.gpo.gov] ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 447 Ethical Conduct; Conforming Amendments AGENCY: Postal Service. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The United States Postal Service is amending the Code of Ethical Conduct for Postal Employees (Code). Many provisions of the Code have been superseded by the Standards of Ethical Conduct for Employees of the Executive Branch (Standards) issued by the Office of Government Ethics (OGE) and by the Postal Service regulations supplemental to the Standards. Other provisions have been superseded by OGE regulations governing the filing and review of public and confidential financial disclosure reports. The superseded provisions of the Code are repealed, and certain provisions in 39 CFR part 447 are amended or revised to conform to new OGE regulations. EFFECTIVE DATE: September 11, 1995. FOR FURTHER INFORMATION CONTACT: Mitchell J. Benowitz, Ethics and Information Law, Postal Service, (202) 268-2967. SUPPLEMENTARY INFORMATION: Background On August 7, 1992, the Office of Government Ethics (OGE) published new Standards of Ethical Conduct for Employees of the Executive Branch (Standards), now codified at 5 CFR part 2635. See 57 FR 35006-35067, as corrected at 57 FR 48557 and 52583, with additional grace-period extensions at 59 FR 4779-4780 and 60 FR 6390-6391. The Standards, which became effective February 3, 1993, set uniform ethical conduct standards applicable to all executive branch personnel. The Standards superseded most federal agency regulations promulgated under subparts A, B, and C of former 5 CFR part 735. On November 30, 1992 [[Page 47242]] (57 FR 56433), the Office of Personnel Management (OPM) issued a final rule amending 5 CFR part 735. The final rule, effective February 3, 1993, repealed many provisions that were contained in subparts A, B, and C of former 5 CFR part 735, but retained certain provisions covering types of conduct that are not covered by the Standards. On April 7, 1992, OGE published in the Federal Register (57 FR 11800) an interim rule amending 5 CFR parts 2633 and 2634. The interim rule implements provisions of the Ethics Reform Act of 1989 (Reform Act) and related legislation pertaining to executive branch employees, which modified public financial disclosure requirements and amended the availability of and procedures for certification of qualified blind and diversified trusts. OGE also published an interim rule, subpart I of 5 CFR part 2634, to establish, effective October 5, 1992, a revised system of confidential (nonpublic) financial disclosure reporting for certain midlevel employees of the executive branch, pursuant to the Reform Act and Executive Order 12674. These interim rules superseded Postal Service regulations pertaining to public and confidential financial disclosure reports, as contained in subpart D of 39 CFR part 447. In a separate document published in this issue of the Federal Register, the Postal Service, with the concurrence of OGE, is issuing regulations applicable to employees of the Postal Service to supplement the Standards of Ethical Conduct for Employees of the Executive Branch. The supplemental regulations, to be codified at 5 CFR part 7001, include restrictions on outside employment similar to many of those that existed under the Code of Ethical Conduct for Postal Employees. Discussion I. General The principal purpose of this rule is to repeal outdated provisions of the Code of Ethical Conduct for Postal Employees (Code), 39 CFR part 447, that have been superseded by OGE regulations. Many provisions of the Code have been superseded by the new Standards of Ethical Conduct for Employees of the Executive Branch, 5 CFR part 2635. In addition, provisions of the Code that concern public and confidential financial disclosure requirements have been superseded by the interim rule amending 5 CFR parts 2633 and 2634. Certain provisions of the Code are retained, either without change or with conforming amendments, because they concern matters that are outside the scope of 5 CFR part 2635. Some provisions are amended to conform to the Ethics Reform Act of 1989, and others are amended to conform to recent changes in the organizational structure of the Postal Service. II. Revision of the Heading of 39 CFR Part 447 The heading of 39 CFR part 447, "Code of Ethical Conduct for Postal Employees," is being revised to "Rules of Conduct for Postal Employees." This revision is intended to make clear that the rules of conduct in 39 CFR part 447, as amended, are not part of the ethical standards contained in 5 CFR part 2635 and regulations supplemental thereto. III. Repeal of Financial Interest Prohibitions The provisions of the Code that prohibited the holding of specified financial interests, 39 CFR 447.22(b)(1) through (b)(7), and those provisions of 39 CFR 447.23 that involved compensated outside employment relationships, have remained temporarily in effect pursuant to the note following 5 CFR 2635.403(a), as extended at 59 FR 4779-4780 and 60 FR 6390-6391. The note following 5 CFR 2635.403(a) provides that such prohibitions shall cease to be effective upon the issuance of agency supplemental regulations. In another document, the Postal Service is now issuing supplemental regulations. Therefore, the provisions of 39 CFR part 447 concerning prohibited financial interests or compensated outside employment relationships are now superseded and repealed. The supplemental regulations prohibit certain outside employment, and they require prior approval for certain outside employment. The supplemental regulations do not, however, specify financial interests the holding of which is prohibited. IV. Analysis of Subparts This amendment will affect subparts A through I of 39 CFR part 447 as follows: Subpart A--Basic Purpose and Applicability Subpart A included explanations of the applicability of 39 CFR part 447 and general standards of ethical conduct applicable to Postal Service employees. All sections of subpart A have been superseded by 5 CFR part 2635. The subpart has been revised to explain that the rules retained in 39 CFR part 447 are in addition to other rules of conduct, specifically the rules contained in 5 CFR part 2635 and Postal Service regulations supplemental thereto. Subpart B--Standards of Conduct Subpart B contained general standards of conduct, rules concerning prohibited financial interests, rules concerning outside employment, and other rules of conduct applicable to Postal Service employees. Most sections of subpart B are repealed because they have been superseded by 5 CFR part 2635 and the Postal Service regulations supplemental thereto, but certain sections are retained. In order to distinguish the rules in subpart B of 39 CFR part 447 from the "standards" in 5 CFR part 2635, the heading of subpart B is revised to "Employee Conduct." The following sections of subpart B are retained: (1) Part of paragraph (j) of 39 CFR 447.23, which concerned teaching, lecturing, and writing. Because the subject of teaching, lecturing, and writing is generally covered in 5 CFR part 2635, part of paragraph (j) therefore is superseded and repealed. Paragraph (j) also included, however, rules concerning the use of information in connection with preparing persons for examinations for appointments within the Federal Government. This part of paragraph (j) is similar to the Executive Branch-wide rule promulgated by OPM, 5 CFR 735.202. The OPM rule does not, however, apply to examinations for appointment in the Postal Service, and it does not specify that the Postmaster General may authorize the use of nonpublic information when such use is in the public interest. Therefore, part of paragraph (j) is retained in amended form. (2) Paragraph (k) of 39 CFR 447.23, which prohibited employees from using sick leave to enable themselves to engage in outside employment. This paragraph is retained because it is an internal personnel rule, issued pursuant to authority independent of 5 CFR part 2635. (3) Paragraphs (a), (c), (d), (e), and (f) of 39 CFR 447.25. These paragraphs concerned, respectively, discrimination, conduct prejudicial to the Postal Service, use of intoxicating beverages, illegal use of drugs, and gambling. The paragraphs are retained because they cover types of conduct that are not within the scope of 5 CFR part 2635, and they are issued pursuant to authority independent of that part. Subpart C--Ethical Conduct Advisory Services and Remedial Action Subpart C included procedures by which Postal Service employees may [[Page 47243]] obtain advice concerning standards of ethical conduct, rules concerning remedial action based on violations of ethical standards, and regulations concerning post-employment restrictions imposed under 18 U.S.C. 207. Sections concerning advisory services are retained in amended form. Under 5 CFR 2635.107, agencies are responsible for providing counseling to their employees with regard to the application of 5 CFR part 2635 and regulations supplemental thereto. The retained sections pertain solely to the Postal Service's internal implementation of requirements imposed by OGE regulations, and they are amended to conform to the OGE regulations and recent changes in the organizational structure of the Postal Service. Sections concerning remedial action are superseded and repealed because 5 CFR 2635.106 provides that violations of 5 CFR part 2635 or regulations supplemental thereto may be cause for disciplinary or corrective action. Nevertheless, as specified in revised subpart A of 39 CFR part 447, Postal Service employees who violate the rules in amended 39 CFR part 447 may be subject to disciplinary action. The sections that pertained to post-employment restrictions, 39 CFR 447.33 and 447.34, are amended to conform to the Ethics Reform Act of 1989. The Reform Act includes amendments to 18 U.S.C. 207, which became effective on January 1, 1991. Sections 447.33 and 447.34 of 39 CFR part 447 were based on former 18 U.S.C. 207, and they applied only to persons who terminated their employment with the Postal Service prior to January 1, 1991. Section 447.33, which described the restrictions imposed under 18 U.S.C. 207 as in effect prior to January 1, 1991, is revised to refer to OGE regulations concerning the same subject, 5 CFR part 2637. Section 447.34, which implemented administrative enforcement procedures authorized under 18 U.S.C. 207(j) as in effect prior to January 1, 1991, is repealed. A new section is added to notify employees who leave the Postal Service after January 1, 1991, that they are subject to the restrictions imposed under 18 U.S.C. 207, as amended. Subpart D--Reports of Employment and Financial Interests Subpart D included regulations concerning the filing and review of confidential and public financial disclosure reports. These regulations are superseded by the new OGE regulations in 5 CFR part 2634. Subpart E--Political Activities Subpart E contained regulations concerning the political activities of Postal Service employees. The regulations are retained because they are issued pursuant to authority independent of 5 CFR part 2635. Section 447.53 is amended to correct a citation to regulations issued by OPM. Subpart F--Participation in Community Affairs Subpart F contained regulations concerning the holding of state or local office by Postal Service employees. The regulations are retained because they are issued pursuant to authority independent of 5 CFR part 2635. Section 447.62 is amended to conform to changes in the organizational structure of the Postal Service. Subpart G--Bribery, Undue Influence, or Coercion Subpart G contained regulations concerning internal procedures for reporting instances in which persons attempt to bribe, unduly influence, or coerce Postal Service employees, and instances involving potential violations of federal laws related to the responsibilities of the Postal Service. The regulations are retained because they are issued pursuant to authority independent of 5 CFR part 2635. Subpart H--Definitions The sections in subpart H defined terms used in 39 CFR part 447. All sections are superseded by 5 CFR part 2635 and are repealed. The definitions of "Postal Service" and "employee" are moved to subpart A of 39 CFR part 447. "Employee" is defined to include a special employee as defined by 18 U.S.C. 202(a). This definition is consistent with the definition of "employee" in 5 CFR 2635.102(h). Subpart I--Statutory Provisions The sections in subpart I, which listed statutes applicable to Postal Service employees, are repealed. Many of the listed statutes apply to all federal employees and are listed in 5 CFR 2635.902. Although statutes that apply specifically to Postal Service employees are not listed in 5 CFR part 2635, the repeal of this subpart does not excuse employees from complying with any applicable statutes. The sections in this subpart are repealed because they are at least in part superseded by 5 CFR part 2635, the statutes are listed for informational purposes only, and the removal of ethical conduct regulations from 39 CFR part 447 renders that part a less useful location for such information. Following this amendment, 39 CFR part 447 will be reorganized as follows: PART 447--RULES OF CONDUCT FOR POSTAL EMPLOYEES Subpart A--Applicability and Definitions Sec. 447.11 Applicability. 447.12 Definitions. Subpart B--Employee Conduct 447.21 Prohibited conduct. Subpart C--Ethical Conduct Advisory Services and Post-Employment Activities 447.31 Advisory service. 447.32 Post-employment activities. Subpart D--Political Activities 447.41 General. 447.42 Additional prohibited political activities. 447.43 Investigation and enforcement. Subpart E--Participation in Community Affairs 447.51 General. 447.52 Holding of State or local office by Postal Service employees. Subpart F--Bribery, Undue Influence, or Coercion 447.61 General. List of Subjects in 39 CFR Part 447 Conflict of interests, Political activities. For the reasons set forth above, 39 CFR part 447 is amended as follows: PART 447--RULES OF CONDUCT FOR POSTAL EMPLOYEES 1. The authority citation for part 447 is revised to read as follows: Authority: 39 U.S.C. 401. 2. The heading of part 447 is revised as set forth above. 3. Subpart A, consisting of Secs. 447.11 and 447.12, is revised to read as follows: Subpart A--Applicability and Definitions Sec. 447.11 Applicability. This part contains rules of conduct for the employees of the Postal Service. Employees are required to comply with the regulations in this part, and violations of the regulations may be cause for disciplinary action. The regulations in this part are in addition to other rules of conduct provided by applicable statutes, regulations, or Postal Service handbooks and manuals. For applicable rules of ethical conduct, employees are referred to the Standards of Ethical Conduct for Employees of the Executive Branch, 5 CFR part 2635, and Postal Service regulations supplemental thereto, 5 CFR part 7001. [[Page 47244]] Sec. 447.12 Definitions. The following definitions apply for purposes of this part. (a) Postal Service. The United States Postal Service as established by 39 U.S.C. 201. (b) Employee. An individual appointed to a position, temporary or permanent, within the Postal Service, or hired as an executive under an employment contract, including a substitute or a special employee as defined by 18 U.S.C. 202(a). The term "employee" does not include the Governors of the Postal Service. 4. The heading of subpart B is revised to read as follows: Subpart B--Employee Conduct Sec. 447.21 [Removed] 5. Section 447.21 is removed. Sec. 447.22 [Removed] 6. Section 447.22 is removed. 7. Section 447.23 is redesignated as Sec. 447.21 and is amended by removing the introductory text and paragraphs (a) through (i). Paragraphs (j) and (k) are redesignated as Secs. 447.21(a) and 447.21(b). Newly redesignated Sec. 447.21 is amended by revising the heading and paragraph (a) to read as follows: Sec. 447.21 Prohibited conduct. (a) An employee must not engage, either on a paid or unpaid basis, in teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of the Office of Personnel Management or Board of Examiners for the Foreign Service, or for appointment in the U.S. Postal Service, when these activities are dependent on information obtained as a result of his or her employment with the Postal Service, except when that information has been made available to the general public, or will be made available on request, or when the Postmaster General gives written authorization that the use of nonpublic information is in the public interest. * * * * * Sec. 447.24 [Removed] 8. Section 447.24 is removed. Sec. 447.25 [Amended] 9. Section 447.25 is amended by removing paragraph (b). Paragraph (a) is redesignated as Sec. 447.21(c). Paragraphs (c) through (f) are redesignated as Secs. 447.21(d) through 447.21(g). Sec. 447.26 [Removed] 10. Section 447.26 is removed. Sec. 447.27 [Removed] 11. Section 447.27 is removed. 12. The heading of subpart C is revised to read as follows: Subpart C--Ethical Conduct Advisory Services and Post-Employment Activities 13. Section 447.31 is revised to read as follows: Sec. 447.31 Advisory service. (a) The Ethical Conduct Officer is responsible for the administration of the ethics program of the Postal Service. In the exercise of that responsibility, the Ethical Conduct Officer shall coordinate the advisory service provided by this section, assure that authoritative interpretations of the Standards of Ethical Conduct for Employees of the Executive Branch (Standards) and Supplemental Postal Service Regulations (Supplemental Regulations) are available to the Associate Ethical Conduct Officers, and render final rulings on behalf of the Postal Service in appeals by employees from rulings under the Standards and Supplemental Regulations made by an agency designee. The Ethical Conduct Officer shall provide advice and guidance for the Postmaster General and all Associate Ethical Conduct Officers concerning questions arising under the Standards and Supplemental Regulations. The Ethical Conduct Officer may delegate to an Assistant Ethical Conduct Officer authority to perform any duty or function vested in him or her by this Section. The General Counsel is the Ethical Conduct Officer of the Postal Service and the Designated Agency Ethics Official for purposes of the Ethics in Government Act, as amended, and implementing regulations of the Office of Government Ethics, including 5 CFR part 2638. (b) The Deputy Postmaster General is the Associate Ethical Conduct Officer for the Office of the Postmaster General and the Office of the Deputy Postmaster General. The Chief Operating Officer, Senior Vice Presidents, Vice Presidents, and such other persons as the Ethical Conduct Officer may designate are Associate Ethical Conduct Officers for their respective organizational elements. Each Associate Ethical Conduct Officer shall designate a suitable employee to coordinate the ethics program within his or her organization and to act as liaison with the Ethical Conduct Officer. Each Associate may designate other suitable employees to assist or act for him or her and shall ensure that there is an adequate number of Qualified Ethics Trainers to comply with the requirements of the annual ethics training program. (c) The Ethical Conduct Officer and, with his or her approval, Associate Ethical Conduct Officers, may delegate to additional persons or classes of persons the authority to make determinations, to give approval, or to take other action in accordance with the Standards of Ethical Conduct, as is contemplated by 5 CFR 2635.102(b), defining "agency designee." (d) An employee may obtain advice and guidance on questions of conflicts of interest from the Ethical Conduct Officer or the Associate Ethical Conduct Officer having appropriate jurisdiction. In order to avoid undue interference with established grievance and disciplinary procedures, advisory service under this subpart will not normally be available in an instance in which a grievance is pending or disciplinary action has been initiated. (e) An employee may request any ruling provided for by the Standards and Supplemental Regulations by submitting a request in writing to the Senior Counsel, Ethics, or, in the field, to the Chief Field Counsel or Deputy Chief Field Counsel, General Law. (f) An employee may appeal to the Ethical Conduct Officer from a ruling made by an agency designee concerning matters covered by the Standards and Supplemental Regulations within 30 days from the date of the ruling. The appeal must be in writing and must contain a full statement of the relevant facts. It should be addressed to the Ethical Conduct Officer, U.S. Postal Service, Washington, DC 20260, and a copy thereof should be sent to the official whose ruling is being appealed. Sec. 447.32 [Removed] 14. Section 447.32 is removed. 15. Section 447.33 is redesignated as Sec. 447.32 and revised to read as follows: Sec. 447.32 Post-employment activities. (a) Restrictions on the post-employment activities of persons who have been employed by the Postal Service are imposed by 18 U.S.C. 207. The Ethics Reform Act of 1989 includes amendments to 18 U.S.C. 207, which became effective January 1, 1991. Employees who terminated their employment prior to January 1, 1991, are subject to the restrictions imposed under 18 U.S.C. 207 in effect prior to that date, while all other employees are subject to the restrictions imposed under 18 U.S.C. 207 as amended. (b) The Office of Government Ethics has issued regulations, contained in 5 CFR part 2637, that implement 18 U.S.C. 207 as in effect prior to January 1, 1991. Employees who terminated their employment with the Postal [[Page 47245]] Service prior to January 1, 1991, may refer to 5 CFR part 2637 for guidance concerning applicable post-employment restrictions, and further guidance may be obtained in accordance with Sec. 447.31 of this part. (c) Employees who terminate their postal employment on or after January 1, 1991, are subject to 18 U.S.C. 207 as amended. Guidance concerning post-employment restrictions applicable to such employees may be obtained in accordance with Sec. 447.31 of this part. Sec. 447.34 [Removed] 16. Section 447.34 is removed. Sec. 447.41 [Removed] 17. Section 447.41 is removed. Sec. 447.42 [Removed] 18. Section 447.42 is removed. 19. Redesignate subpart E as subpart D as follows: Subpart D--Political Activities Secs. 447.51 and 447.52 [Redesignated as Secs. 447.41 and 447.42] 20. Sections 447.51 and 447.52 are redesignated as Secs. 447.41 and 447.42. 21. Section 447.53 is redesignated as Sec. 447.43 and revised to read as follows: Sec. 447.43 Investigation and enforcement. The Office of the Special Counsel and the Merit Systems Protection Board investigate and adjudicate allegations of political activity in violation of the regulations of the Office of Personnel Management by Postal Service employees. For jurisdiction in such a case, see 5 CFR 734.102 and part 1201. 22. Redesignate subpart F as subpart E as follows: Subpart E--Participation in Community Affairs Sec. 447.61 [Redesignated as Sec. 447.51] 23. Section 447.61 is redesignated as Sec. 447.51. 24. Section 447.62 is redesignated as Sec. 447.52, and paragraph (d)(2) is revised to read as follows: Sec. 447.52 Holding of State or local office by Postal Service employees. * * * * * (d) * * * (2) The Vice President, Area Operations, determines that the employee's postal responsibilities are being conducted in a satisfactory manner and that the absence of the employee during the campaign period will not disrupt the operation of the facility where he or she is employed. Note: Requests shall be submitted through the postmaster or other installation head to the Vice President, Area Operations. If the employee is elected to and takes such a full-time office, he or she may either be separated from the Postal Service or granted leave without pay. * * * * * Subpart F--Bribery, Undue Influence, or Coercion Sec. 447.71 (Subpart G) [Redesignated as Sec. 447.61 (Subpart F)] 25. Redesignate subpart G, consisting of Sec. 447.71, as subpart F, consisting of redesignated Sec. 447.61. Sec. 447.81 [Removed] 26. Subpart H, consisting of Sec. 447.81, is removed. Sec. 447.91 [Removed] 27. Subpart I, consisting of Sec. 447.91, is removed. Stanley F. Mires, Chief Counsel, Legislative. [FR Doc. 95-22380 Filed 9-8-95; 8:45 am] BILLING CODE 7710-12-P