This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

15700

Vol. 60, No. 58

Monday, March 27, 1995

POSTAL SERVICE

5 CFR Chapter LX

RIN 3209–AA04

Supplemental Standards of Ethical

Conduct for Employees of the United

States Postal Service

AGENCY: Postal Service.

ACTION: Proposed rule.

SUMMARY: The United States Postal

Service, with the concurrence of the

Office of Government Ethics (OGE),

proposes to issue regulations applicable

to employees of the Postal Service to

supplement the Standards of Ethical

Conduct for Employees of the Executive

Branch issued by OGE. The proposed

rule, which addresses ethical issues

unique to the Postal Service, would

prohibit certain outside activities and

would require prior approval for

employees to engage in other specified

outside employment or activities.

DATES: Comments must be received on

or before May 26, 1995.

ADDRESSES: Send comments to Chief

Counsel, Ethics and Information Law,

United States Postal Service, 475

L’Enfant Plaza, SW, Washington, DC

20260–1110. Copies of all written

comments will be available for

inspection and photocopying between 9

a.m. and 4 p.m., Monday through

Friday, in Room 6427, at the above

address.

FOR FURTHER INFORMATION CONTACT:

Mitchell J. Benowitz, Ethics and

Information Law, Postal Service, (202)

268–2967.

SUPPLEMENTARY INFORMATION:

I. Background

On August 7, 1992, the Office of

Government Ethics 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 on February 3, 1993, set

uniform ethical conduct standards

applicable to all executive branch

personnel.

Under 5 CFR 2635.105, agencies may

issue, with the concurrence of OGE,

agency-specific regulations

supplementing 5 CFR part 2635 as

necessary to fulfill the purposes of that

part in light of the agency’s particular

programs and operations. The Postal

Service, with OGE’s concurrence, has

determined that the following proposed

supplemental regulations, to appear in

new 5 CFR chapter LX, consisting of

part 7001, are necessary to the

successful implementation of its ethics

program.

The OGE regulations in 5 CFR part

2635 superseded many provisions of the

Code of Ethical Conduct for Postal

Employees (Code), 39 CFR part 447,

including many of its restrictions on

outside employment at 39 CFR 447.23

that do not involve compensated

outside employment relationships.

Certain other provisions of the Code that

prohibited the holding of specified

financial interests, 39 CFR 447.22(b)(1)–

(7), and those provisions of 39 CFR

447.23 that involve 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 and 60

FR 6390–6391.

The supplemental regulations will

include restrictions on outside

employment similar to many of those

that were or continue to be in effect

under 39 CFR 447.23. Upon further

consideration of the prohibited financial

interest provisions of 39 CFR

447.22(b)(1)–(7) in light of the uniform

regulations concerning conflicting

interests codified in 5 CFR 2635.401–

2635.403, and other provisions of part

2635, the Postal Service has concluded

that these financial interest prohibitions

should not be retained. These

provisions will be repealed in a separate

document amending 39 CFR part 447 to

remove outdated provisions, which will

be published concurrently with the final

rule adopting supplemental regulations.

II. Analysis of the Regulations

Section 7001.101 General

Section 7001.101 explains that the

regulations contained in the proposed

rule apply to all employees of the Postal

Service and are supplemental to the

uniform executive branch standards.

Postal Service employees also are

subject to the Standards at 5 CFR part

2635, the executive branch financial

disclosure regulations at 5 CFR part

2634, and additional rules of conduct

published in Postal Service regulations

and manuals.

Section 7001.102 Restrictions on

Outside Employment and Business

Activities

Under 5 CFR 2635.802(a), agencies are

authorized to issue supplemental

regulations prohibiting employees from

engaging in outside employment or

activities that conflict with their official

duties. Under 5 CFR 2635.803, agencies

are authorized to issue supplemental

regulations requiring employees to

obtain prior approval before they engage

in outside employment or other outside

activities.

(a) Prohibited outside employment

and business activities.

Under 39 CFR 447.23(a)(1), the Postal

Service previously has prohibited its

employees from manufacturing or

representing a manufacturer of any

product produced for exclusive use by

the Postal Service or required for use by

its customers. Proposed

§ 7001.102(a)(1)(i) would refine and

continue this prohibition, adding an

express reference to working for

manufacturers of postal employee

uniforms. The involvement of Postal

Service employees in such activities

could cause members of the public to

question the impartiality and objectivity

with which Postal Service programs are

administered, because it could create

the appearance that the employees, or

the persons they represent or with

whom they otherwise are affiliated, are

in a position to benefit from knowledge

or influence gained by the employees

through their official positions.

Under 39 CFR 447.23(a)(3), the Postal

Service previously has prohibited

employees from engaging in

employment that involves the delivery

of mail to the postal facility in which

the employee works, or to a facility

within the delivery area of the post

office in which the employee works, if

such employment required the

employee to conduct business with

other employees performing the same

type of duties. In proposed

§ 7001.102(a)(1)(ii), the rule would be

revised to prohibit any employment
Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Proposed Rules 15701

involving the delivery of mail for a

postal contractor to the specified

facilities, without regard to the nature of

the employee’s duties. The revision is

intended to simplify the rule. Although

the revision would create a somewhat

broader prohibition, the Postal Service

has concluded that the involvement of

employees in the delivery of mail at or

near their official workplace might lead

reasonable persons to be concerned that

the employees’ outside employers are

receiving preferential treatment from the

Postal Service.

Under 39 CFR 447.23(a)(4), the Postal

Service previously has prohibited

employees from acting as ‘‘consultants’’

for current or potential Postal Service

contractors. Such activity could lead

members of the public to be concerned

that the employees are using knowledge

or influence gained through their

official positions to benefit their outside

employers. Proposed

§ 7001.102(a)(1)(iii) would provide a

similar prohibition, but because the

term ‘‘consultants’’ did not clearly

define the activity subject to the

prohibition, the new section would

apply to ‘‘consultation, advice, or any

subcontracting service.’’ In addition,

proposed § 7001.102(a)(1)(iii) would

apply to such services only when

rendered ‘‘with respect to the

operations, programs, or procedures of

the Postal Service.’’ This limitation has

been included to make clear that an

employee would not be prohibited from

consulting with a business that happens

to hold a Postal Service contract when

the employee’s consulting work is not

related to that contract and does not

have any other postal connection. Under

such circumstances the employee would

not be expected to gain any personal

benefit, or to provide any benefit for the

outside business, from knowledge or

influence arising from his or her official

position. As explained below, another

proposed provision, § 7001.102(b)(1),

may require the employee to obtain

prior approval before engaging in any

employment, including consulting

work, with a business that depends

heavily on postal contracts.

Under 39 CFR 447.23(g), the Postal

Service previously has prohibited

employees from engaging in

employment with a private business

that delivers mailable matter. Proposed

§ 7001.102(a)(1)(iv) would continue the

prohibition, and also would specify that

working for a commercial mail receiving

agency—an agency registered under

Domestic Mail Manual D042.2.5 to

receive mail from the Postal Service for

delivery to others—would be included

in this prohibition. Unlike most Federal

agencies, the Postal Service must

compete with certain private businesses.

The new section would prohibit

employees from working for such

businesses because the outside

employment might lead members of the

public to question the employees’

loyalty to the Postal Service, thereby

undermining public confidence in the

integrity of postal operations. This type

of concern is not presented by postal

employees having outside employment

delivering daily newspapers, which is

not prohibited.

Under 39 CFR 447.23(a)(5), the Postal

Service previously has prohibited

employees from engaging in any sales

activity while on duty, in uniform, or in

the office where the employee is

stationed. Proposed § 7001.102(a)(2)

would continue this prohibition, but

would extend it to cover sales activities

at any postal facility. The prohibition is

intended to prevent employees from

using influence derived from their

official positions as an aid to sales

activities, and experience has shown

that employees may exert such

influence at postal facilities other than

their own. Under 5 CFR 2635.702,

employees must not use public office for

their own private gain or for the benefit

of others such as any business with

which they are affiliated. The Postal

Service considers that a more explicit,

supplemental rule is needed to deal

with sales activities in the workplace or

in uniform, whether or not the

employee who would engage in the

sales activity is on duty.

(b) Prior approval for outside

employment and business activities.

Under 39 CFR 447.23(a)(2), the Postal

Service previously has prohibited

employees from engaging in

employment with persons with whom

they have dealings in their official

capacities. Proposed § 7001.102(b)(1)(i)

would instead require employees to

obtain approval before engaging in such

employment or business activities.

Although there are situations in which

outside activities involving such

persons would raise issues under 5 CFR

part 2635, the duties of many Postal

Service employees, such as clerks and

letter carriers, might bring them into

limited contact with a variety of outside

businesses, including large, diversified

corporations. Prohibiting such

employees from being employed in any

phase of a business, merely because the

business’s mail touches their hands,

would be unduly restrictive. Therefore,

the Postal Service considers a prior

approval requirement more appropriate

than a prohibition for this type of

outside employment and, under 5 CFR

2635.803, has proposed the prior

approval requirement at

§ 7001.102(b)(1)(i). The review required

by the approval process can be expected

to identify those employment

relationships that would present ethical

conduct concerns under 5 CFR part

2635.

Under 39 CFR 447.23(a)(6), the Postal

Service previously has prohibited

employees from engaging in outside

employment with (1) persons whose

business interests are substantially

dependent upon, or may be significantly

affected by, postal rates, fees, or

classifications; and (2) persons whose

interests are substantially dependent on

providing goods or services to, or for use

in connection with, the Postal Service.

Proposed § 7001.102(b)(1)(ii) would

require employees to obtain prior

approval before engaging in such

employment or business activities.

Definitions of the outside businesses to

which the prior approval requirement

would apply are provided in

§ 7001.102(c)(2) and (c)(3). Whether

such outside employment or business

activities should be approved will

usually depend upon the relationship

between the particular postal

employee’s official duties and the

operations or interests of the outside

business. Therefore, the Postal Service

considers that a prior approval

requirement is the appropriate

mechanism to bring to light and address

outside relationships that are likely to

raise ethical conduct issues under 5 CFR

part 2635.

Proposed § 7001.102(b)(2) would set

forth the procedure by which employees

may request approval to engage in

outside employment or business

activities for which prior approval is

required. The standard for approval

would be set forth in proposed

§ 7001.102(b)(3). Under this standard,

approval could be granted only when it

is determined that the outside

employment or business activity will

not involve conduct prohibited by law

or Federal regulation. Because requests

for prior approval might involve

situations where the employee’s

conduct could violate the principle that

employees shall endeavor to avoid any

actions creating the appearance that

they are violating the law or the

standards set forth in 5 CFR part 2635,

the approval standard includes a

specific reference to 5 CFR

2635.101(b)(14).

Proposed § 7001.102(c)(1) would

provide a definition of ‘‘outside

employment or business activity.’’ The

definition would clarify that the

regulations cover those who would

engage in business as a principal—as

proprietor, general partner, director, or

holder of a franchise—as well as to
15702 Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Proposed Rules

those who would serve a business as

employee, contractor, or the like. Under

the proposed definition, an employee

would not, simply by holding shares in

a publicly held corporation, be engaged

in employment or business activity with

or on behalf of that corporation.

Section 7001.103 Statutory Prohibition

Against Interests in Contracts To Carry

Mail and Acting as Agent for

Contractors

Proposed § 7001.103 would provide

notice to Postal Service employees that

certain interests in, and conduct in

connection with, mail transportation

contracts are prohibited by a criminal

statute, 18 U.S.C. 440. The section is for

purposes of notification only. Neither

the Postal Service nor OGE has issued

regulations interpreting this statutory

prohibition.

III. Matters of Regulatory Procedure

Although the Postal Service is

exempted by 39 U.S.C. 410(a) from the

advance notice requirements of the

Administrative Procedure Act regarding

rulemaking (5 U.S.C. 553(b), (c)), the

Postal Service invites comments on this

proposed rule.

List of Subjects in 5 CFR Part 7001

Conflict of interests, Ethical

standards, Executive branch standards

of conduct, Government employees.

Dated: March 8, 1995.

Mary S. Elcano,

General Counsel and Vice President, United

States Postal Service.

Approved: March 15, 1995.

Stephen D. Potts,

Director, Office of Government Ethics.

For the reasons set forth in the

preamble, the United States Postal

Service, with the concurrence of the

Office of Government Ethics, is

proposing to amend title 5 of the Code

of Federal Regulations by adding a new

chapter LX, consisting of part 7001, as

follows:

Chapter LX—United States Postal

Service

PART 7001 — SUPPLEMENTAL

STANDARDS OF ETHICAL CONDUCT

FOR EMPLOYEES OF THE UNITED

STATES POSTAL SERVICE

Sec.

7001.101 General.

7001.102 Restrictions on outside

employment and business activities.

7001.103 Statutory prohibition against

interests in contracts to carry mail and

acting as agent for contractors.

Authority: 5 U.S.C. 7301; 5 U.S.C. App.

(Ethics in Government Act of 1978); 39

U.S.C. 401; E.O. 12674, 54 FR 15159, 3 CFR,

1989 Comp., p. 215, as modified by E.O.

12731, 55 FR 42547, 3 CFR, 1990 Comp., p.

306; 5 CFR 2635.105, 2635.802, and

2635.803.

§ 7001.101 General.

In accordance with 5 CFR 2635.105,

the regulations in this part supplement

the Standards of Ethical Conduct for

Employees of the Executive Branch

contained in 5 CFR part 2635, as

applied to employees of the United

States Postal Service (Postal Service).

Postal Service employees are subject, in

addition to the standards in 5 CFR part

2635 and this part, to the executive

branch financial disclosure regulations

contained in 5 CFR part 2634, and to

any rules of conduct issued separately

by the Postal Service, including but not

limited to, regulations contained in 39

CFR part 447, the Postal Service

Employee and Labor Relations Manual,

and the Postal Service Procurement

Manual.

§ 7001.102 Restrictions on outside

employment and business activities.

(a) Prohibited outside employment

and business activities. No Postal

Service employee shall:

(1) Engage in outside employment or

business activities with or for a person,

including oneself, engaged in:

(i) The manufacture of any uniform or

other product required by the Postal

Service for use by its employees or

customers;

(ii) The transportation of mail under

Postal Service contract to or from the

postal facility at which the employee

works, or to or from a postal facility

within the delivery area of a post office

in which the employee works;

(iii) Providing consultation, advice, or

any subcontracting service, with respect

to the operations, programs, or

procedures of the Postal Service, to any

person who has a contract with the

Postal Service or who the employee has

reason to believe will compete for such

a contract; or

(iv) The operation of a commercial

mail receiving agency registered with

the Postal Service, or the delivery

outside the mails of any type of mailable

matter, except daily newspapers; or

(2) Engage in any sales activity,

including the solicitation of business or

the receipt of orders, for oneself or any

other person, while on duty or in

uniform, or at any postal facility.

(b) Prior approval for outside

employment and business activities—(1)

Requirement for approval. A Postal

Service employee shall obtain approval,

in accordance with paragraph (b)(2) of

this section, prior to:

(i) Engaging in outside employment or

business activities with or for any

person with whom the employee has

official dealings on behalf of the Postal

Service; or

(ii) Engaging in outside employment

or business activities, with or for a

person, including oneself, whose

interests are:

(A) Substantially dependent upon, or

potentially affected to a significant

degree by, postal rates, fees, or

classifications; or

(B) Substantially dependent upon

providing goods or services to, or for use

in connection with, the Postal Service.

(2) Submission and contents of

request for approval. An employee who

wishes to engage in outside employment

or business activities for which prior

approval is required by paragraph (b)(1)

of this section shall submit a written

request for approval to the Postal

Service Ethical Conduct Officer or

appropriate delegate. The request shall

be accompanied by a statement from the

employee’s supervisor briefly

summarizing the employee’s duties and

stating any workplace concerns raised

by the employee’s request for approval.

The request for approval shall include:

(i) A brief description of the

employee’s official duties;

(ii) The name of the outside employer,

or a statement that the employee will be

engaging in employment or business

activities on his or her own behalf;

(iii) The type of employment or

business activities in which the outside

employer, if any, is engaged;

(iv) The type of services to be

performed by the employee in

connection with the outside

employment or business activities;

(v) A description of the employee’s

official dealings, if any, with the outside

employer on behalf of the Postal

Service; and

(vi) Any additional information

requested by the Ethical Conduct Officer

or delegate that is needed to determine

whether approval should be granted.

(3) Standard for approval. The

approval required by paragraph (b)(1) of

this section shall be granted only upon

a determination that the outside

employment or business activity will

not involve conduct prohibited by

statute or Federal regulation, including

5 CFR part 2635, which includes, among

other provisions, the principle stated at

5 CFR 2635.101(b)(14) that employees

shall endeavor to avoid any actions

creating the appearance that they are

violating the law or the ethical

standards set forth in part 2635.

(c) Definitions. For purposes of this

section:
Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Proposed Rules 15703

(1) Outside employment or business

activity means any form of employment

or business, whether or not for

compensation. It includes, but is not

limited to, the provision of personal

services as officer, employee, agent,

attorney, consultant, contractor, trustee,

teacher, or speaker. It also includes, but

is not limited to, engagement as

principal, proprietor, general partner,

holder of a franchise, operator, manager,

or director. It does not include equitable

ownership through the holding of

publicly traded shares of a corporation.

(2) A person having interests

substantially dependent upon, or

potentially affected to a significant

degree by, postal rates, fees, or

classifications includes a person:

(i) Primarily engaged in the business

of publishing or distributing a

publication mailed at second-class rates

of postage;

(ii) Primarily engaged in the business

of sending advertising, promotional, or

other material on behalf of other

persons, through the mails;

(iii) Engaged in a business that

depends substantially upon the mails

for the solicitation or receipt of orders

for, or the delivery of, goods or services;

or

(iv) Who is, or within the past 4 years

has been, a party to a proceeding before

the Postal Rate Commission.

(3) A person having interests

substantially dependent upon providing

goods or services to or for use in

connection with the Postal Service

includes a person:

(i) Providing goods or services under

contract with the Postal Service that can

be expected to provide revenue

exceeding $100,000 over the term of the

contract and that provides five percent

or more of the person’s gross income for

the person’s current fiscal year; or

(ii) Substantially engaged in the

business of preparing items for others

for mailing through the Postal Service.

§ 7001.103 Statutory prohibition against

interests in contracts to carry mail and

acting as agent for contractors.

Section 440 of title 18, United States

Code, makes it unlawful for any Postal

Service employee to become interested

in any contract for carrying the mail, or

to act as agent, with or without

compensation, for any contractor or

person offering to become a contractor

in any business before the Postal

Service.

Stanley F. Mires,

Chief Counsel, Legislative.

[FR Doc. 95–7469 Filed 3–24–95; 8:45 am]

BILLING CODE 7710–12–P

DEPARTMENT OF JUSTICE

Immigration and Naturalization Service

8 CFR Part 100

[INS No. 1677–94]

RIN 1115–AD84

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 122

RIN 1515–AB64

Customs/INS Field Organizations;

Revocations and Designation of

International Airport Status for

Customs Services and Ports of Entry

for Aliens Arriving by Aircraft

AGENCIES: Immigration and

Naturalization Service, Justice; Customs

Service, Treasury.

ACTION: Joint notice of proposed

rulemaking.

SUMMARY: This document proposes to

amend the Customs and Immigration

and Naturalization Service (the Service)

Regulations pertaining to their

respective field organizations. Customs

proposes to revoke the international

airport designations for the Ranier

International Seaplane Base located in

Ranier, Minnesota, and the Eagle Pass

Municipal Airport located in Eagle Pass,

Texas. The Service proposes to remove

Ranier, MN, and Eagle Pass, TX, from

the port of entry lists for aliens arriving

by vessel, land transportation, or by

aircraft. This proposal is based on

evidence that the facilities at these

locations have deteriorated and/or the

amount of business clearing through the

airports does not justify continued

maintenance of inspection equipment

and personnel. The document also

proposes to designate Maverick County

Airport located in Maverick County,

Texas, as a new international airport for

Customs purposes and as a new port of

entry for purposes of the Service. These

changes will assist both agencies in

their continuing efforts to achieve more

efficient use of their personnel,

facilities, and resources, and to provide

better service to carriers, importers, and

the general public.

DATES: Comments must be received on

or before May 26, 1995.

ADDRESSES: Please submit written

comments in triplicate to the

Regulations Branch, Office of

Regulations and Rulings, U.S. Customs

Service, 1301 Constitution Avenue NW.,

Washington, DC 20229. Comments

submitted may be inspected at the

Regulations Branch, Office of

Regulations and Rulings, Franklin

Court, 1099 14th Street NW., Suite 4000,

Washington, DC.

FOR FURTHER INFORMATION CONTACT: At

Customs Service—Darlene Langum

Wilder, Office of Passenger Enforcement

and Facilitation, Office of Inspection

and Control, (202) 927–0530; at

Immigration and Naturalization

Service—Andrea Sickler, Assistant

Chief Inspector, Office of Inspections,

Immigration and Naturalization Service,

425 I Street NW., Room 7228,

Washington, DC 20536, (202) 616–7993.

SUPPLEMENTARY INFORMATION:

Background

To achieve more efficient use of their

personnel, facilities, and resources, and

to provide better services to carriers,

importers, and the public in general,

U.S. Customs and the Immigration and

Naturalization Service (the Service)

propose to amend their respective field

organization regulations.

Customs proposes to amend § 122.13

of the Customs Regulations (19 CFR

122.13), which lists international

airports, to reflect the proposed

revocations of the international airport

designations for (1) Ranier International

Seaplane Base located in Ranier,

Minnesota, in the Customs District of

Duluth, Minnesota, North Central

Region, and (2) Eagle Pass Municipal

Airport located in Eagle Pass, Texas, in

the Customs District of Laredo, Texas,

Southwest Region. Customs further

proposes to amend § 122.13 to reflect

the proposed designation of Maverick

County Airport located in Maverick

County, Texas, in the Customs District

of Laredo, Texas, Southwest Region, as

an international airport. Revocation of

the international airport designations

will not result in any significant

reduction in Customs services in the

area, as future Minnesota transactions

will be handled at either Sky Harbor

Airport or Crane Lake Seaplane Base,

both landing rights airports, and future

Texas transactions will be handled at

Maverick County Airport, also a landing

rights airport, which, it is proposed, will

be designated as an international

airport.

The Service proposes to amend 8 CFR

100.4(c) (2) and (3), which pertain to

ports of entry for aliens arriving by

vessel, land transportation, or by

aircraft, to reflect the removal of the

same two ports of entry: (1) Ranier

International Seaplane Base located in

Ranier, Minnesota, in the Service

District of St. Paul, Minnesota, and (2)

Eagle Pass Municipal Airport located in

Eagle Pass, Texas, in the Service District