[Federal Register Volume 82, Number 209 (Tuesday, October 31, 2017)]
[Rules and Regulations]
[Pages 50319-50321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-23576]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3000

[Docket No. RM2017-4; Order No. 4178]


Supplemental Standards of Ethical Conduct

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission revises its existing ethics rules to replace 
those duplicative rules with rules that reflect the Commission's 
current regulatory role under the Postal Accountability and Enhancement 
Act.

DATES: Effective date: November 30, 2017.

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Background
III. Comments
IV. Commission Analysis
V. Ordering Paragraphs

I. Introduction

    On May 24, 2017, the Postal Regulatory Commission (Commission) 
issued a notice of proposed rulemaking to amend the Commission's ethics 
rules, 39 CFR subpart A of part 3000.\1\ On the same day, with the 
concurrence of the Office of Government Ethics (OGE), the Commission 
also issued a notice of proposed rulemaking to amend the supplemental 
standards of ethical conduct, 5 CFR part 5601, applicable to Commission 
employees.\2\
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    \1\ 82 FR 23766 (May 24, 2017). The Commission posted this 
document on its Web site on May 19, 2017. Notice of Proposed 
Rulemaking on Amendments to Ethics Rules, May 19, 2017 (Order No. 
3907).
    \2\ 82 FR 23758 (May 24, 2017). The Commission posted this 
document on its Web site on May 19, 2017. Order No. 3906, Notice of 
Proposed Rulemaking on Amendments to Supplemental Standards of 
Ethical Conduct for Employees of the Postal Regulatory Commission, 
May 19, 2017.
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    Executive branch employees are subject to multiple federal ethics 
laws, regulations issued by OGE, and executive orders. Because existing 
39 CFR subpart A of part 3000 contains several rules that are 
duplicative of rules contained in 5 CFR part 2638 and 5 CFR part 5601, 
as amended, the Commission will revise existing 39 CFR subpart A of 
part 3000. The Commission will replace those duplicative rules with 
rules that reflect the Commission's current regulatory role under the 
Postal Accountability and Enhancement Act (PAEA), Public Law 109-435, 
120 Stat. 3198 (2006). The revised rules will treat employees' and 
former employees' interactions with the Postal Service substantially 
the same as if those interactions were with entities that are not part 
of the federal government.

II. Background

    The ethics rules contained in 39 CFR subpart A of part 3000 were 
adopted in a 1971 rulemaking, in which the Civil Service Commission 
promulgated employee conduct regulations on the Commission's behalf. 36 
FR 5412 (Mar. 23, 1971). In 1993, the Commission collaborated with OGE 
to revise the Commission's ethics rules in 39 CFR subpart A of part 
3000. 58 FR 42873, 42874 (Aug. 12, 1993). The Commission amended the 
ethics rules in 2001 to eliminate a redundant provision. 66 FR 32544, 
32545 (Jun. 15, 2001).
    In 2006, the PAEA changed the agency's name from the Postal Rate 
Commission to the Postal Regulatory Commission and made several changes 
to the Commission's regulatory role. In 2007, the Commission amended 
its ethics rules to correct the statutory authority and the agency's 
name, both of which were changed by the PAEA. 72 FR 33164, 33165 (Jun. 
15, 2007). In 2016, the Commission amended its ethics rules to 
redesignate the numbering to be consistent with the Federal Register 
Document Drafting Handbook and to correct the listed authority. 81 FR 
42534, 42540 (Jun. 30, 2016). Neither amendment modernized the 
Commission's ethics rules to reflect the PAEA's enhancements to the 
Commission's responsibilities.
    Because the ethics rules in existing 39 CFR subpart A of part 3000 
are redundant to rules contained in title 5 of the Code of Federal 
Regulations, the Commission undertook this rulemaking to streamline its 
regulations. Order No. 3907 at 4-5. Further, the PAEA's changes to the 
Commission's responsibilities drive the need to modernize the ethics 
rules to ensure that consistent rules will apply to employees' and 
former employees' interactions with entities outside the federal 
government and with the Postal Service.

III. Comments

    The Commission received two sets of comments pertaining to the 
proposed revisions to the supplemental standards of ethical conduct and 
the Commission's ethics rules.
    Sum Comments. The Commission received the following comment through 
the www.federalregister.gov Web site: ``Any deletion of ethical conduct 
would not be in the best

[[Page 50320]]

interest of the American people due to transparency.'' \3\
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    \3\ Comment Received from Beth Sum, June 19, 2017 (Sum 
Comments). For transparency, this comment was posted to the 
Commission's Web site and associated with this docket.
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    PR Comments. The Public Representative supports the proposed 
revisions.\4\ He deems it ``critical that the Commission's ethics rules 
accurately reflect its role as a regulator and are reflective of the 
agency's procedures.'' PR Comments at 2. He concludes that the proposed 
revisions serve the public interest, reinforce public perception of the 
Commission's integrity, and increase accessibility and transparency. 
Id. He states that ``the Commission's judgment that the standards 
applied to private firms should apply to the Postal Service is 
reasonable.'' Id. at 2-3. He also states that the proposed revisions 
help to ``maintain the public's confidence that Commission staff are 
fulfilling their roles impartially.'' Id. at 2.
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    \4\ Public Representative Comments on Notices of Proposed 
Rulemaking on Amendments to Ethics Rules and Amendments to 
Supplemental Standards of Ethical Conduct for Employees of the 
Postal Regulatory Commission, June 26, 2017 (PR Comments). The 
Public Representative also filed a motion for late acceptance of his 
comments. Motion of Public Representative for Late Acceptance of 
Comments, June 26, 2017 (Motion). The Motion is granted.
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    He observes that the proposed deletions are primarily editorial 
revisions made to delete duplicative and outdated sections. Id. at 3. 
He notes that the proposed deletions will not limit the ethical 
obligations of Commission employees. Id.

IV. Commission Analysis

    Neither commenter suggested changes to the proposed rules. The 
Public Representative supports the proposed rules. Id. at 2-3. In 
response to the concern expressed in the Sum Comments, the Commission 
reiterates its commitment to upholding the highest ethical standards. 
As executive branch employees, Commission employees remain subject to 
several statutes governing conflicts of interests (see, e.g., 18 U.S.C. 
201-219); the standards of ethical conduct appearing in Executive Order 
12674, as amended by Executive Order 12731; \5\ and regulations 
promulgated by OGE relating to several issues, including financial 
disclosure, the standards of ethical conduct, and post-employment 
conflicts of interest (see, e.g., 5 CFR parts 2634, 2635, and 2641). 
Commission employees are also subject to the supplemental standards of 
ethical conduct, 5 CFR part 5601, which are also being revised to 
reflect the Commission's modern regulatory role under the PAEA and to 
remove duplicative and outdated provisions.\6\ The regulations at issue 
in this Order, the ethics rules applicable to Commission employees 
only, concern restrictions imposed upon Commission employees in 
addition to these laws and standards. The proposed revisions remain 
consistent with these laws and do not abrogate their application in any 
way. Streamlining the Commission's ethics rules supports OGE's mission 
to establish a single, comprehensive, and clear set of executive branch 
standards of ethical conduct in accordance with Executive Order 12731. 
The proposed revisions will not lead to any reduction in the ethical 
obligations of Commission employees. Ultimately, the proposed revisions 
will enhance the Commission's adherence to ethical conduct by more 
accurately reflecting the Commission's modern regulatory role under the 
PAEA.
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    \5\ See Executive Order No. 12674, 54 FR 15159 (Apr. 12, 1989); 
Executive Order No. 12731, 55 FR 42547 (Oct. 17, 1990).
    \6\ Order No. 4177, Order Amending Supplemental Standards of 
Ethical Conduct for Employees of the Postal Regulatory Commission, 
October 25, 2017.
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    Specifically, the Commission deletes the four rules in existing 39 
CFR subpart A of part 3000, which are redundant to provisions contained 
in title 5 of the Code of Federal Regulations, as displayed in the 
following table:

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  Existing subpart A of      Description of the    Duplicative provision
        part 3000               existing rule       contained in title 5
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Sec.   3000.5............  Cross-reference to      5 CFR 5601.101(a), as
                            employee ethical        amended by Order No.
                            conduct standards and   4177.
                            financial disclosure
                            regulations.
Sec.   3000.10...........  Memorializing the       5 CFR part 2638.
                            duties of the
                            Designated Agency
                            Ethics Official
                            (DAEO) for the
                            Commission.
Sec.   3000.15...........  Memorializing the       5 CFR 5601.102, as
                            prohibition against     amended by Order No.
                            financial conflicts     4177.
                            of interest.
Sec.   3000.20...........  Prohibited outside      5 CFR 5601.104(a) and
                            employment, prior       (b) and 5601.103(a),
                            approval to engage in   as amended by Order
                            outside employment,     No. 4177.
                            and disqualification
                            when seeking non-
                            federal employment.
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    Further, as detailed in Order No. 3907, the Commission issues 
replacement rules that will improve transparency and the ability of 
Commission employees to adhere to the highest ethical standards. 
Specifically, these rules treat employees' and former employees' 
interactions with the Postal Service substantially the same as if those 
interactions were with entities that are not part of the federal 
government. As noted by the Public Representative, this will serve the 
public interest and reinforce public perception of the Commission's 
integrity with respect to the oversight of the Postal Service. See PR 
Comments at 2.
    The Commission makes two editorial revisions. First, the Commission 
corrects the format of the cross-references to title 5 of the Code of 
Federal Regulations in proposed Sec. Sec.  3000.10 and 3000.15.
    Second, the Commission clarifies the text of proposed Sec.  
3000.10(a), relating to the obligation of Commission employees seeking 
employment with the Postal Service to provide written notice of 
disqualification to the DAEO. The Commission adds a cross-reference to 
reflect that this obligation supplements the requirement that 
Commission employees seeking non-federal employment provide written 
notice of disqualification to the DAEO. Also, the Commission adds a 
procedural sentence memorializing that the DAEO will inform the 
employee and the employee's supervisor in writing of each matter from 
which the employee is disqualified from participating. This clarifying 
revision will better ensure that the employee is disqualified from all 
applicable matters. For these reasons and those reasons detailed in 
Order No. 3907, the Commission adopts the proposed rules without 
substantial changes.

V. Ordering Paragraphs

    It is ordered:
    1. Subpart A of part 3000 of title 39, Code of Federal Regulations, 
is

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amended as set forth below the signature of this Order effective 30 
days after the date of publication of this Order in the Federal 
Register.
    2. The Secretary shall arrange for publication of this order in the 
Federal Register.

List of Subjects in 39 CFR Part 3000

    Conflict of interests.

    By the Commission.
Stacy L. Ruble,
Secretary.

    For the reasons discussed in the preamble, the Commission amends 
chapter III of title 39 of the Code of Federal Regulations as follows:

CHAPTER III--POSTAL REGULATORY COMMISSION

0
1. Under the authority of 39 U.S.C. 503, remove the heading of 
subchapter A.

PART 3000--STANDARDS OF CONDUCT

0
2. The authority citation for part 3000 continues to read as follows:

    Authority:  39 U.S.C. 503; 504, 3603; E.O. 12674; 54 FR 15159; 3 
CFR,1989 Comp., p. 215, as modified by E.O. 12731, 56 FR 42547, 3 
CFR, 1990 Comp., p. 396, 5 CFR parts 2634 and 2635.

0
3. Revise subpart A of part 3000 to read as follows:

Subpart A--General Provisions

Sec.
3000.5 Post-employment restrictions.
3000.10 Additional required notification of disqualification when 
seeking employment.
3000.15 Additional restriction on acceptance of anything of value.
3000.20 [Reserved]


Sec.  3000.5   Post-employment restrictions.

    All former employees of the Postal Regulatory Commission 
(Commission) are subject to the following restrictions on appearance 
and practice before the Commission on behalf of any participant, 
including the United States Postal Service (Postal Service):
    (a) No former employee of the Commission may practice or act as an 
attorney, expert witness, or representative in connection with any 
proceeding or matter before the Commission that the former employee has 
handled, advised, or participated in the consideration of while in the 
service of the Commission.
    (b) No former employee of the Commission may within 1 year after 
his or her employment has ceased, practice before or act as an 
attorney, expert witness, or representative in connection with any 
proceeding or matter before the Commission that was under the official 
responsibility of such individual, as defined in 18 U.S.C. 202(b), 
while in the service of the Commission.


Sec.  3000.10   Additional required notification of disqualification 
when seeking employment.

    (a) Notwithstanding 5 CFR 2635.603(a), an employee that seeks 
employment with the Postal Service must provide written notice of 
disqualification to the Designated Agency Ethics Official (DAEO) 
consistent with 5 CFR 5601.103(a). The DAEO will inform the employee 
and the employee's supervisor in writing of each matter from which the 
employee is disqualified from participating.
    (b) An employee may withdraw written notice under paragraph (a) of 
this section consistent with 5 CFR 5601.103(b).


Sec.  3000.15   Additional limitation on acceptance of anything of 
value.

    Regardless of 5 CFR 2635.203(b)(7), a Commission employee may not 
accept a gift from the Postal Service, unless another exception or 
exclusion to 5 CFR 2635.203 applies or a waiver is granted by the DAEO.


Sec.  3000.20   [Reserved]

[FR Doc. 2017-23576 Filed 10-30-17; 8:45 am]
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