[Federal Register Volume 61, Number 134 (Thursday, July 11, 1996)]
[Rules and Regulations]
[Pages 36498-36500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17114]
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POSTAL SERVICE
39 CFR Parts 5, 7, 10
Board of Governors Bylaws
AGENCY: Postal Service.
ACTION: Final rule.
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SUMMARY: The Board of Governors of the United States Postal Service has
approved amendments to its bylaws. First, the bylaw provisions
concerning procedures of committees of the Board has been amended to
conform the conditions under which the Government in the Sunshine Act
is invoked to the definition of covered ``meeting'' under that Act.
Second, the Board has revised its rules of conduct to delete provisions
superseded by the Standards of Ethical Conduct for Employees of the
Executive Branch issued by the Office of Government Ethics and by the
Postal Service regulations supplemental to the Standards. Conforming
changes are made to the remaining ethics provisions.
EFFECTIVE DATE: July 11, 1996.
FOR FURTHER INFORMATION CONTACT: Thomas J. Koerber, (202) 268-4800.
SUPPLEMENTARY INFORMATION:
A. Committee Procedures
In practice, the Board of Governors has used its committees for a
means of in-depth, informal exchange with management on matters of
ongoing concern to the Board. It has not considered that sessions of
this type are covered by the provisions of the Government in the
Sunshine Act, regarding notice and open meetings. The provisions of
that Act apply to ``the deliberations of at least the number of
individual agency members required to take action on behalf of the
agency where such deliberations determine or result in the joint
conduct or disposition of official agency business'' (5 U.S.C.
552b(a)(2)). The Board's bylaw concerning Public Observation (part 7)
generally incorporates this language from the Sunshine Act in full (39
CFR 7.1(b)).
Bylaw provisions on committee procedures, in 39 CFR 5.2, currently
refer to formal actions by committees--such as recommendations,
preliminary decisions, and hearings--in a manner which reaches outside
the terms of the Sunshine Act regarding when a committee session will
be subject to the Board's Public Observation rules under part 7. Since
the Board has intended that the Public Observation rules will apply
strictly as provided in the Sunshine Act, some of this bylaw language
may be subject to misinterpretation. Accordingly, this language is
deleted from 39 CFR 5.2, and conforming changes are made in 39 CFR
7.1(a).
The Board's committees continue to be subject to the Public
Observation procedures under part 7, only to the extent that a
particular session should constitute a ``meeting'' within the meaning
of the Government in the Sunshine Act, 5 U.S.C. 552b(a)(2), and section
7(b) of the bylaws.
B. Rules of Conduct
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
(August 7, 1992) as corrected at 57 FR 48557 (October 27, 1992) and 57
FR 52583 (November 4, 1992), with additional grace-period extensions at
59 FR 4779-4780 (February 2, 1994) and 60 FR 6390-6391 (February 2,
1995). 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 September 11, 1995, the Postal Service, with the concurrence of
OGE and pursuant to 5 CFR 2635.105, published regulations applicable to
Postal Service employees to supplement the Standards. See 60 FR 47240-
47241, September 11, 1995. The supplemental regulations, to be codified
at 5 CFR part 7001, prohibit certain outside employment or activities,
and require prior approval for employees to engage in other specified
outside employment or activities.
Discussion
I. General
The principal purpose of the revisions to part 10 is to repeal
outdated provisions of the Code of Ethical Conduct for Postal Service
Governors (Code), which have been superseded by the new Standards of
Ethical Conduct for Employees of the Executive Branch (5 CFR part 2635)
and Postal Service regulations supplemental thereto (5 CFR part 7001).
The Governors of the Postal Service are special Government employees
within the meaning of 18 U.S.C. 202(a). Special Government employees
are subject to the Standards of Ethical Conduct for Employees of the
Executive Branch, and agency regulations supplemental thereto (5 CFR
2635.102(h)). Therefore, the Governors are subject to the regulations
in 5 CFR parts 2635 and 7001.
Some provisions of 39 CFR part 10 are retained in amended form to
conform to the Ethics Reform Act of 1989. The retained provisions
concern advisory service, restrictions on post-employment activities,
and the filing of financial disclosure reports.
II. Revision of the Heading of 39 CFR Part 10
The heading of 39 CFR part 10, ``Code of Ethical Conduct for Postal
Employees [Appendix],'' is being revised to ``Rules of Conduct for
Postal Service Governors [Appendix].'' This revision is intended to
make clear that the rules of conduct in 39 CFR part 10, 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 10.22(a) through (e), and those provisions
of 39 CFR 10.23 that involved compensated outside employment
relationships, remained temporarily in effect pursuant to the note
following 5 CFR 2635.403(a), as extended at 59 FR 4779-4780, February
2, 1994, and 60 FR 6390-6391, February 2, 1995. The note following 5
CFR 2635.403(a) provides that such prohibitions shall cease to be
effective upon the issuance of agency
[[Page 36499]]
supplemental regulations. On September 11, 1995, the Postal Service
issued supplemental regulations. See 60 FR 47240-47241, September 11,
1995. Therefore, the provisions of 39 CFR part 10 concerning prohibited
financial interests or compensated outside employment relationships are
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 repeal large portions of 39 CFR part 10, and
the amended part will contain only four sections. Accordingly, part 10
no longer will be divided into subparts. This amendment will affect the
regulations in subparts A through D of 39 CFR part 10 as follows.
Subpart A--Basic Purpose and Applicability
Subpart A included explanations of the applicability of 39 CFR part
10 and general standards of ethical conduct applicable to Postal
Service Governors. All sections of subpart A have been superseded by 5
CFR part 2635. Section 10.11 has been renumbered as section 10.1 and
revised to explain that, in addition to the rules retained in 39 CFR
part 10, Governors are subject to the rules contained in 5 CFR parts
2635 and 7001.
Subpart B--Standards of Conduct
Subpart B contained general standards of conduct, rules concerning
prohibited financial interests, rules concerning outside employment,
rules concerning the acceptance of gifts, and other rules of conduct
applicable to Postal Service Governors. All sections of subpart B are
repealed because they have been superseded by 5 CFR parts 2635 and
7001.
Subpart C--Ethical Conduct Advisory Services and Remedial Action
Subpart C included procedures by which Postal Service Governors may
obtain advice concerning standards of ethical conduct, and a regulation
concerning post-employment restrictions imposed under 18 U.S.C. 207.
Regulations concerning advisory services are retained in amended form
in revised section 10.2. 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.
Revised section 10.2 pertains solely to the Postal Service's internal
implementation of requirements imposed by OGE regulations, and it is
revised to conform to the OGE regulations.
Regulations concerning post-employment restrictions are retained in
amended form in a new section 10.3. New section 10.3 notifies Governors
that they are subject to the restrictions imposed under 18 U.S.C. 207.
Subpart D--Reports of Employment and Financial Interests
Subpart D included regulations concerning the filing and review of
financial disclosure reports. These regulations are retained in amended
form in new section 10.4.
As a result of this amendment, 39 CFR Part 10 will be reorganized
as follows:
PART 10--RULES OF CONDUCT FOR POSTAL SERVICE GOVERNORS (APPENDIX)
Sec.
10.1 Applicability.
10.2 Advisory service.
10.3 Post-employment activities.
10.4 Financial disclosure reports.
List of Subjects
39 CFR Part 5
Administrative practice and procedure, Advisory committees,
Organization and functions (Government agencies), Sunshine Act.
39 CFR Part 7
Sunshine Act.
39 CFR Part 10
Conflict of interests.
For the reasons set forth above, 39 CFR Chapter I, Subchapter A, is
amended as follows:
PART 5--COMMITTEES (ARTICLE V)
1. The authority citation for part 5 is revised to read as follows:
Authority: 39 U.S.C. 202, 203, 204, 205, 401(2), (10), 1003,
3013.
2. Section 5.2 is revised to read as follows:
Sec. 5.2 Committee procedure.
Each committee establishes its own rules of procedure, consistent
with these bylaws, and meets as provided in its rules. A majority of
the members of a committee constitute a quorum.
PART 7--PUBLIC OBSERVATION (ARTICLE VII)
3. The authority citation for part 7 continues to read as follows:
Authority: 39 U.S.C. 401(a), as enacted by Pub. L. 91-375, and 5
U.S.C. 552b (a)-(m) as enacted by Pub. L. 94-409.
4. Section 7.1 is amended by republishing the introductory text and
by revising paragraph(a) to read as follows:
Sec. 7.1 Definitions.
For purposes of Secs. 7.2 through 7.8 of these bylaws:
(a) The term Board means the Board of Governors, and any
subdivision or committee of the Board authorized to take action on
behalf of the Board.
* * * * *
PART 10--RULES OF CONDUCT FOR POSTAL SERVICE GOVERNORS (APPENDIX)
5. The authority citation for part 10 is revised to read as
follows:
Authority: 39 U.S.C. 401.
6. The heading of part 10 is revised as set forth above.
6a. The table of contents for part 10 is revised to read as
follows:
Sec.
10.1 Applicability.
10.2 Advisory service.
10.3 Post-employment activities.
10.4 Financial disclosure reports.
7. Subparts A through D headings are removed.
Sec. 10.11 [Redesignated as Sec. 10.1]
8. Section 10.11 is redesignated as Sec. 10.1 and revised to read
as follows:
Sec. 10.1 Applicability.
This part contains rules of conduct for the members of the Board of
Governors of the United States Postal Service. As special employees
within the meaning of 18 U.S.C. 202(a), the members of the Board are
also subject 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.
Sec. 10.31 [Redesignated as Sec. 10.2]
9. Section 10.31 is redesignated as Sec. 10.2 and revised to read
as follows:
Sec. 10.2 Advisory service.
(a) 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 the implementing
regulations of the Office of Government Ethics, including 5 CFR part
2638.
(b) A Governor may obtain advice and guidance on questions of
conflicts of interest, and may request any ruling provided for by
either the Standards of Ethical Conduct for Employees of the Executive
Branch, or the Postal Service regulations supplemental thereto, from
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the General Counsel or a designated assistant.
(c) If the General Counsel determines that a Governor is engaged in
activity which involves a violation of federal statute or regulation,
including the ethical conduct regulations contained in 5 CFR parts 2635
and 7001, or conduct which creates the appearance of such a violation,
he or she shall bring this to the attention of the Governor or shall
notify the Chairman of the Board of Governors, or the Vice Chairman, as
appropriate.
10. A new section 10.3 is added to read as follows:
Sec. 10.3 Post-employment activities.
Governors are subject to the restrictions on the post-employment
activities of special Government employees imposed by 18 U.S.C. 207.
Guidance concerning post-employment restrictions applicable to
Governors may be obtained in accordance with Sec. 10.2(b).
Sec. 10.12 [Removed]
10a. Section 10.12 is removed.
Sec. 10.21 [Removed]
11. Section 10.21 is removed.
Sec. 10.22 [Removed]
12. Section 10.22 is removed.
Sec. 10.23 [Removed]
13. Section 10.23 is removed.
Sec. 10.24 [Removed]
14. Section 10.24 is removed.
Sec. 10.32 [Removed]
15-16. Section 10.32 is removed.
Sec. 10.41 [Redesignated as Sec. 10.4]
17. Section 10.41 is redesignated as Sec. 10.4, and is amended by
revising paragraphs (a) and (e)(2) to read as follows:
Sec. 10.4 Financial disclosure reports.
(a) Requirement of submission of reports. At the time of their
nomination, Governors complete a financial disclosure report which,
under the practice of the Senate Governmental Affairs Committee, is
kept confidential. Because the Director of the Office of Government
Ethics has ruled that Governors who do not perform the duties of their
office for more than 60 days in any calendar year are not required to
file financial disclosure reports that are open to the public,
Governors file non-public reports annually, in accordance with this
section. A Governor who performs the duties of his or her office for
more than 60 days in a particular calendar year is required to file a
public report in accordance with 5 CFR 2634.204(c).
* * * * *
(e) * * *
(2) Confidentiality of reports. Unless a public report is required
by this section, the financial disclosure reports filed by Governors
shall not be made public.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-17114 Filed 7-10-96; 8:45 am]
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