[Federal Register Volume 60, Number 175 (Monday, September 11, 1995)]
[Rules and Regulations]
[Pages 47241-47245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22380]



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POSTAL SERVICE
39 CFR Part 447


Ethical Conduct; Conforming Amendments

AGENCY: Postal Service.

ACTION: Final rule.

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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Code have been superseded by the Standards of Ethical Conduct for 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 Other provisions have been superseded by 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 The superseded provisions of 
the Code are repealed, and certain provisions in 39 CFR part 447 are 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    The Standards superseded most federal agency regulations 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1993, repealed many provisions that were contained in subparts A, B, 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