[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superseded by the Standards of Ethical Conduct for Employees of the 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

[[Page 36500]]

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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