742.735-61 Special Government employees required to submit statements. 742.735-62 Exceptions. 742.735-63 Time for submission of statements.

Subpart G-Ethical Conduct Counseling and Reporting of Employment and Financial Interests Systems 742.735-71

Ethical Conduct Counselor and Deputy Ethical Conduct Counselors.

742.735-72 Reporting of employment and financial interests.

742.735-73 Availability of counseling services. 742.735-74 Advice concerning possible conflict of interest. 742.735-75 Disciplinary and other remedial action.

742.735-76 Establishment of review system. Subpart H-Informing Employees and Special Government Employees of Code of Ethical Conduct

742.735-81 All employees and special Government employees.

AUTHORITY: The provisions of this Part 742 Issued under 5 U.S.C. 301, 39 U.S.C. 501, Executive Order 11222 of May 8, 1965 (30 F.R. 6469, 3 CFR, 1965 Supp.) 5 CFR 735.104.

SOURCE: The provisions of this Part 742 appear at 32 F.R. 11785, Aug. 16, 1967; 32 F.R. 12115, Aug. 23, 1967, unless otherwise noted.

Subpart A-Basic Philosophy

§ 742.735-11 General.

Postal employees have, over the years, established a fine tradition of faithful service to the Nation, unsurpassed by any other group. Each employee should take great pride in this tradition of dedicated service. Each of us must strive to make his contribution worthwhile in the continued movement of the Postal Service toward future progress in the public interest.

§ 742.735-12 Purpose.

This statement of ethical conduct is provided to instruct and to guide those employees entering the Service for the first time, and also as a reminder to all employees of the conduct required and expected of them in carrying out their official duties.

are expected to maintain the highest moral principles, and to uphold the laws of the United States and the regulations and policies of the Post Office Department. Not only is ethical conduct required, but officials and employees must be alert to avoid actions which would appear to prevent fulfillment of postal obligations. Assigned duties must be discharged conscientiously and effectively. The Postal Service has the unique privilege of having daily contact with the majority of the citizens of the Nation, and is in many instances their most direct contact with the Federal Government. Thus, there is an especial opportunity and responsibility for each postal employee to act with honor and integrity worthy of the public trust, thereby reflecting credit and distinction on the Postal Service, and on the entire Federal Government.

Subpart B-Basic Standards of
Ethical Conduct

§ 742.735-21 Introduction.

This part governs the ethical conduct of all postal employees.

§ 742.735-22 Code of ethics.

The Congress has expressed the standards of conduct expected of all Government employees in a Code of Ethics as follows: (H. Con. Res. 175, 85th Cong., 2d sess., 72 Stat. B12).

1. Put loyalty to the highest moral principles and to country above loyalty to persons, party, or Government department.

2. Uphold the Constitution, laws, and legal regulations of the United States and of all governments therein and never be a party to their evasion.

3. Give a full day's labor for a full day's pay; giving to the performance of his duties his earnest effort and best thought.

4. Seek to find and employ more efficient and economical ways of getting tasks

accomplished.

5. Never discriminate unfairly by the dispensing of special favors or privileges to anyone, whether for remuneration or not; and never accept, for himself or his family, favors or benefits under circumstances which might be construed by reasonable persons as influencing the performance of his governmental duties.

6. Make no private promises of any kind binding upon the duties of office, since a Government employee has no private word which can be binding on public duty.

7. Engage in no business with the Government, either directly or indirectly, which is inconsistent with the conscientious performance of his governmental duties.

8. Never use any information coming to him confidentially in the performance of governmental duties as a means for making private profit.

9. Expose corruption wherever discovered. 10. Uphold these principles, ever conscious that public office is a public trust.

§ 742.735-23

Standards of conduct.

(a) The President has also prescribed standards of conduct for all Government employees in Executive Order 11222 of May 8, 1965, Vol. 30, Federal Register 6469. Pursuant to that Executive Order and Civil Service Commission Regulations thereunder, Vol. 32, F.R. 8281, June 9, 1967, the Postmaster General has issued these regulations to govern the conduct of all employees of the Department, including special Government employees.

(b) A violation of the standards of conduct set forth in this part, or in the laws referred to in this part, may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law.

[33 F.R. 10930, Aug. 1, 1968]

§ 742.735-24 Definitions, and applicability to members of the uniformed services and other Government employees on detail to the Department. (a) Following are definitions as used in this part:

(1) Department. Headquarters and all postal installations and facilities (unless otherwise indicated).

(2) Employee. An officer or employee of the Department. This does not include a special Government employee (other than a substitute or temporary appointee in the Postal Field Service) or a member of the Uniformed Services.

(3) Executive order. Executive Order 11222 of May 8, 1965.

(4) Ethical Conduct Counselor. The person designated by the Postmaster General to carry out the responsibilities of Ethical Conduct Counselor as required by the Executive order, and implementing regulations thereto, issued by the Civil Service Commission.

(5) Deputy Ethical Conduct Counselor. Those persons designated by the Postmaster General to assist the Ethical Conduct Counselor.

(6) Person. An individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other organization or institution.

(7) Special Government employee. An

officer or employee or a member of any committee appointed by the Postmaster General who is retained, designated, appointed, or employed to perform temporary duties either on a full-time or intermittent basis, with or without compensation, for not to exceed 130 days during any period of 365 consecutive days.

(8) Official responsibility. Direct administrative or operating authority, whether intermediate or final and either exercisable alone or with others, and either personally or through subordinnates, to approve, disapprove, or otherwise direct Government action.

(9) Substantial or substantially. Used in the regulations in this section in the same sense as in 18 U.S.C. 208(b). This interest is incapable of absolute definition; determination as to such interest will be made on an individual case basis in light of the facts and circumstances in each individual case.

(b) The regulations in this part are not applicable to Members of the Uniformed Services and other Government employees on detail to the Department even though they are assigned to the Department for duty. They are, however, required to furnish a statement of employment and financial interest if they are performing duties of a position specified in § 742.735-52. However, a member of the Uniformed Services or other Government employee on detail to the Department is not relieved of his responsibilities under regulations or code of ethics prescribed by his respective department.

§ 742.735-25 Gifts, entertainment, favors and proscribed actions.

(a) Except as provided in paragraph (b) of this section, an employee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from a person who:

(1) Has or is seeking to obtain, contractual or other business or financial relations with the Department;

(2) Conducts operations or activities that are regulated by the Department;

ployee, and the employee) when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors;

(2) Prohibit acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour when an employee may properly be in attendance;

(3) Prohibit acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans;

(4) Prohibit acceptance of unsolicited advertising or promotional material such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.

(5) Prohibit an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses for travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, an employee may not be reimbursed, or payment may not be made on his behalf, for excessive personal living expenses, gifts, entertainment or other personal benefits, nor may an employee be reimbursed by a person for travel on official business under Department orders when reimbursement is proscribed. When an employee travels on official business he should use commercial transportation at Government experse and he should not accept free transportation from a private party. In the event there is no commercial transportation which will enable him to arrive at destination in time for the performance of his duties, he may accept private transportation provided the private party is reimbursed therefor at the standard commercial rate. This subparagraph also applies to § 742.735–27(b) (1).

(6) Prohibit acceptance of invitations for inaugural flights (air, surface, or water) providing the invitation is addressed to the Department and the employee first obtains authorization from the Ethical Conduct Counselor. The request for authorization shall describe the nature of the trip, the length and time duration. The employee should also advise whether the invitation includes parties, gifts or other considerations.

(7) Prohibit the acceptance and use of courtesy discount cards from depart

ment stores or other organizations if such discount cards are offered to all employees at the postal facility concerned.

(c) An employee shall avoid any action, whether or not specifically prohibited by this Part 742 which might result in, or create the appearance of:

(1) Using public office for private gain;

(2) Giving preferential treatment to any person;

(3) Impeding Government efficiency or economy;

(4) Losing complete independence or impartiality;

(5) Making a Government decision outside official channels; or

(6) Affecting adversely the confidence of the public in the integrity of the Government.

(d) An employee shall not solicit contributions from another employee for a gift to an employee in a superior official position, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this section does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(e) An employee shall not accept a gift, present, decoration, or anything from a foreign government unless authorized in accordance with the Foreign Gifts and Decorations Act of 1966 (P.L. 89-673, 80 Stat. 952). However, an employee may accept a nominal gift from a visiting foreign dignitary if the gift is from the visiting dignitary in his personal capacity as distinguished from a gift from and on behalf of the foreign country.

(f) Employees shall not issue addresses, complimentary tickets, prints, publications, or any substitute therefor intended or calculated to induce the public to make them gifts or presents. § 742.735-26 Conflicts of interest.

(a) Outside employment and other activities. (1) Subject to the regulations in this part, employees may engage in private outside employment with or without compensation. An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment or otherwise prohibited by

law. Incompatible activities include, but are not limited to:

(i) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest; or

(ii) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable man

ner.

(2) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government (18 U.S.C. 209).

(3) Employees are prohibited from manufacturing or representing a manufacturer of any product, material or device manufactured or produced for exclusive use in the Department, or required by the Department for patrons of the Department. Employees shall not accept or continue in any outside business, vocation or activity, that will reflect discredit upon the Department, or in which their employent in the Department will give them an advantage over others not in the Department engaged in a similar business, vocation or activity. In determining whether such employment is inconsistent with a postal position, such factors as proper performance on the job, using information obtained in an official capacity for personal benefit or gain, opportunity for collusion between employees and contractors or postal patrons, shall be given due consideration. When a doubt exists as to whether a possible personal interest may be in conflict with postal activities, the situation should be discussed with the Ethical Conduct Counselor or Deputy Ethical Conduct Counselor, as appropriate by the bureau or installation head for determination as to whether or not the employee should function in a given situation.

(4) An employee shall not engage in outside employment under a State or local government except in accordance with this Part 742 and section 744.34 of the Postal Manual.

(5) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, the Executive order, or this part. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing that is dependent on

information obtained as a result of his Government employment, 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 for the use of nonpublic information on the basis that the use is in the public interest.

(6) If an employee takes sick leave and it is found that he did so to enable him to engage in outside work, such action is a violation of this Code of Ethics.

(7) Postal employees, including management officials, may not be employed as messengers, collectors, or agents for private business firms engaged in mail delivery service, if such employment requires them to conduct postal business with the unit or section of the post office where they work, such as delivery of bulk mail to the weighers unit if their post office assignment is to that unit; transact business involving advance deposits, postage due, setting of meters, etc., if post office assignment is to the Main Office Window Service; or in any way to conduct postal business with postal employees occupying duty assignments identical to their own post office assignment. This does not prevent such employment with this type of firm if the business is conducted with a post office or within the delivery area of a post office other than the one where the postal employee works: Provided: No employee will allow such outside work to interfere in any manner whatsoever with his assigned work schedule or his efficiency as a postal employee; employee does not represent himself in any way as a postal employee while transacting private business to gain an advantage; and employee does not perform such private business while attired in an official postal uniform.

(8) Employees may not work for any person or entity with whom he has official dealings on behalf of the Department. For instance, postmasters should not be employed by banks in which postal funds of his office are deposited.

(9) Employees may not engage in tax work involving Federal taxes if such work extends beyond the mere preparation of the tax return or furnishing information to Internal Revenue Service obtained solely from the records of the taxpayer. An employee may not become involved in advocating the taxpayer's position.

(10) Neither an employee, who has an outside law practice, nor his partner nor firm is permitted to represent any client

in a matter in which the United States is a party or has a direct and substantial interest, except as may otherwise be authorized by law or regulation.

(11) Generally, vehicle maintenance contracts will not be had with postal employees or members of their immediate household, which would service the office where they are employed. However, if there are no other commercial facilities available within a reasonable proximity to the postal facility, the contracting officer may solicit bids or quotations for such service from those employees or members of their immediate household with the prior approval of the Ethical Conduct Counselor.

(12) Employees may not enter into lease agreements or contracts giving the Department an option to purchase realproperty except as provided in this subparagraph:

(i) Site options: Regional contracting officers will not accept assignable options from postal employees for the control or purchase of land to be used for construction of a postal facility when the net interior square footage of the building will exceed 3,000 square feet. If, however, it is the opinion of the Regional contracting officer that acceptance would be in the best interest of the Government the agreement together with recommendation, should be submitted to Headquarters for consideration. The recommendation must contain information regarding the length of time the postal employee controlled the site, the type of interest and the cost of the site to the employee and any reason why the particular site should be used.

(ii) New construction agreements: Regional contracting officers will not enter into a new lease or rental contract with any postal employee to provide for a building and related facilities to be occupied as a first or second-class office, including any sub-location thereof, except for improvements and/or modifications directed by the Department to buildings under lease or rent from postal employees at the time the improvements and/or modifications are directed. Regional contracting officers will not enter into a new lease or rental contract with any postal employee to provide for a building and related facilities to be occupied as a third-class office where the net interior square footage of the building exceeds 3,000 square feet.

(iii) Any proposed renewal or extension of an expiring occupancy contract,

regardless of class of office, where the lessor is a postal employee and the net interior square footage of the building exceeds 3,000 square feet must be forwarded to the Director, Realty Division, Bureau of Facilities, for prior approval. The Chief, Real Estate Branch, shall forward the project file, properly documented to show that continued occupancy of the existing facility is in the best interest of the Government with his comments as to any known possible conflicts of interest that may exist and his recommendation with regard to continued occupancy. The file shall be forwarded a minimum of thirty (30) calendar days prior to the date the renewal option must be exercised or the date the lease extension agreement would be effective providing acceptance is in order.

(13) Postal employees and members of their immediate household, as defined in § 742.735-28 (a), are prohibited from engaging in any business enterprise which involves the sale of U.S. postage stamps in vending machines or otherwise, when the cost of such stamps to the purchaser exceeds the face value of the stamps for any reason whatsoever. See section 1721 of Title 18, United States Code. However, postal employees are not barred from bona fide philatelic transactions provided that they have not obtained any advantage by virtue of their postal employment over others not so employed.

(14) Employees may not act as consultant to any contractor who presently has or intends to obtain a contract with this Department.

(15) Postmasters may not serve in any capacity whatsoever with a bank in which postal funds of his office are deposited. A postmaster may hold stock in such a bank if his holdings are de minimus, that is to say, that the amount of his stock holdings in such bank would not create a conflict or appearance of conflict with his official position.

(b) Employment after separation. (1) A former employee is permanently prohibited from acting as agent or attorney for anyone other than the United States in any particular matter, involving a specific party or parties, in which the United States is a party or has a direct and substantial interest, if he participated personally and substantially in the handling of such matter during his postal employment.

(2) A former employee is barred for 1 year after his employment has ceased