censed vending stand operators and State licensing agencies shall use diligence and good judgment and cooperate with postal authorities in preventing the keeping on the premises, for disposal to the public by sale or otherwise, of any so-called comic books or any other printed or written matter of an objectionable, subversive, or controversial nature which may subject the Post Office Department to public criticism. Violations of this section shall be reported to the Assistant Postmaster General, Bureau of Operations, Classification and Special Services Division, with a copy of the objectionable matter.

§ 614.5 Survey of vending stand oppor

tunities.

either in conjunction with his stand or in other areas of the same building under control of the Post Office Department, shall be assigned to the blind operator. When machines are being operated by an employees' committee in proximity to a stand or machines operated by a blind person and are in competition therewith, and a blind operator is not receiving an adequate income, consideration shall be given to assigning him all or part of the profits from other vending machines in the same building, regardless of location. (Adequate income is construed as being the equivalent of the average income of the average employee at the installation.) Reassignment of profits shall be considered only upon request from a State licensing agency to a postmaster or other postal official in charge of an installation. Assignment of profits to the blind operator from other vending machines shall be determined by the postal official in charge and the State licensing agency on the basis of the following:

(1) Proximity to and competition with the vending stand;

(2) Income which accrues to the operator from the stand operation; and (3) Profits from vending machines not operated in connection with the stand.

(b) To employees' committees. All income received by employees' committees from vending machines or other enterprises (except cafeterias, which are governed by other regulations) shall be used advantageously for the welfare and recreational activities of all employees. No profits shall accrue to the benefit of any single group, organization, or individual.

PART 742-CODE OF ETHICAL

CONDUCT

Subpart A-Basic Philosophy

General.

742.735-11

742.735-50 742.735-51 742.735-52

Statements

Form and content of statements.
Specific classes of employees.
Exclusions.

Subpart F-Specific Provisions for Special
Government Employees

742.735-61 Special Government employees required to submit statements. Exceptions.

742.735-62 742.735-63 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.

Subpart H-Reviewing of Statements System 742.735-76 Establishment of review system. Subpart -Informing Employees and Special Governent Employees of Code of Ethical Conduct

742.735-81 All employees and special Government employees.

AUTHORITY: The provisions of this Part 742 issued under R.S. 161, 5 U.S.C. 22, 39 U.S.C. 501, 505, 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 31 F.R. 3234, Mar. 1, 1966, unless otherwise noted. Redesignated at 31 F.R. 15351, Dec. 8, 1966.

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 our own 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 other employees of the conduct required and expected of them in carrying out their official duties.

§ 742.735-13 Applicability.

All postal personnel must act with unwavering integrity and complete devotion to the public interest. Postal personnel 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 not only on the Postal Service, but the entire Federal Government. Subpart B-Basic Standards of Ethical Conduct

§ 742.735-21 Introduction. This subpart 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.

The President has also prescribed standards of conduct for all Government employees in Executive Order 11222 of May 8, 1965, 30 F.R. 6469. Pursuant to that Executive order and Civil Service Commission regulations thereunder (5 CFR Part 735; 30 F.R. 12530, Oct. 1, 1965), the Postmaster General has issued the regulations in this part to govern the conduct of all employees of the Department, including special Government employees.

(a) Following are definitions as used in this part:

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

(2) "Employee" means an officer or employee of the Department, but 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" means Executive Order 11222 of May 8, 1965.

(4) "Ethical Conduct Counselor" means that person who has been designated by the Postmaster General to carry out the responsibilities of Ethical Conduct Counselor as required by the Executive order and implementing regu

lations thereto, issued by the Civil Service Commission.

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

(6) "Person" means 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” means 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 one hundred and thirty days during any period of three hundred and sixty-five consecutive days.

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

(9) "Substantial" or "substantially” is used in the regulations in this part 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) Applicability to members of the uniformed services and other Government employees on detail to the Department: 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 § 742.735-51. 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.

rectly, 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;

or

(3) Has interests that may be substantially affected by the performance or nonperformance of his official duty.

(b) Paragraph (a) of this section does not:

(1) Govern obvious family or personal relationships (such as those between the parents, children, or spouse of the employee, 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 where 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; and

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

(c) An employee shall avoid any action, whether or not specifically prohibited by this part 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. An employee in a superior official position shall not accept a gift presented as a contribution from employees

An

receiving less salary than himself. employee shall not make a donation as a gift to an employee in a superior official position (5 U.S.C. 113).

(e) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 114-115a.

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

(1) 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 manner.

(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 the 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 employment 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 be

tween employees and contractors or postal patrons, shall be given due consideration. Where 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 the Deputy Ethical Conduct Counselor, as appropriate, and the bureau of 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 paragraph (c) (1) (vii) of this section.

(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 non-public information on the basis that the use is in the public interest.

(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 from appearing personally as agent or attorney for anyone other than the United States in connection with 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 such matter was within his official responsibility within a period of 1 year prior to the termination of such responsibility.

(3) Subparagraphs (1) and (2) of this paragraph do not preclude a former employee from pursuing a private, personal claim against the Government for: Damages to his private property resulting from Government action or failure to

act; moneys owed as a result of his employment or service performed, or other matters of a similar nature.

(4) Unless otherwise prohibited by subparagraph (1) or (2) of this paragraph, a former employee may act as counsel or as a representative of an employee member in grievance or adverse action cases before the Department or the Civil Service Commission.

(5) Notwithstanding subparagraphs (1) and (2) of this paragraph, when the particular matter involved is in a scientific or technical field and if the Postmaster General certifies in writing that it is in the national interest and the certification is published in the FEDERAL REGISTER, a former officer or employee, including a former special Government employee, with outstanding scientific or technical qualifications may act as attorney or agent or appear personally.

(c) Political activity. Postal employees are governed by the provisions of the Hatch Political Activities Act of August 2, 1939 (Hatch Act), as amended; by the Federal Corrupt Practices Act of February 28, 1925, as amended; and by U.S. Civil Service Commission rules.

(1) Permitted political activities—(i) Voting. All officials and employees are encouraged to register and to vote as they may choose in all local, State and national elections. (See Part 721 of the Postal Manual on leave for voting.)

(ii) Expression of opinions. The right to express political opinions is reserved to all postal officials and employees except as stated in subparagraph (2) of this paragraph.

(iii) Political contributions. It is lawful for officials and employees to make voluntary contributions not in excess of $5,000 in the aggregate during any calendar year, to regularly constituted political organizations, provided such contributions are not made in a Federal building. However, officials and employees of the United States shall not, directly or indirectly, solicit, receive, or in any manner be concerned in soliciting or receiving, any assessment, subscription or contribution for any political purpose whatever, from any other such officer, employee or person; nor shall any officer or employee discharge, promote, or degrade, or in any manner change the official rank or compensation of any other officer or employee, or promise or threaten to do so, for giving or withholding or neglecting to make any contribu