A statement of employment and financial interest required to be submitted under this section shall be submitted not later than the time of employment of the special Government employee. Each special Government employee shall keep his statement current throughout his employment with the Department by the submission of supplementary statements at such intervals as the Postmaster General may direct, but not less frequent intervals than those prescribed for employees.

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

§ 742.735-71 Ethical Conduct Counselor and Deputy Ethical Conduct Counselors.

(a) The Ethical Conduct Counselor is responsible for the administration of the Department's counseling and advisory services, and for assuring that counseling and interpretations of questions on conflicts of interest and other matters covered by this part are available to Deputy Ethical Conduct Counselors. The Ethical Conduct Counselor may require any Deputy Ethical Conduct Counselor to assist him in the administration of this program. The Ethical Conduct Counselor, or his designee has exclusive jurisdiction to counsel and advise (1) all employees paid at a level of the Executive Schedule in subchapter II of chapter 53 of Title 5 U.S. Code; (2) Deputy Ethical Conduct Counselors at Headquarters, except the Deputy Ethical Conduct Counselor for Office of the Postmaster General and Office of the Deputy Postmaster General; and (3) employees within his own organization.

(b) The Deputy Postmaster General is the Deputy Ethical Conduct Counselor for all employees under the direct supervision of or within, the Office of the Post

master General and the Office of the Deputy Postmaster General.

(c) At Headquarters, Bureau and Office heads are Deputy Ethical Conduct Counselors for all employees within their respective Bureaus and Offices. The Chief Postal Inspector is also the Deputy Ethical Conduct Counselor for all inspectorsin-charge, deputy inspectors-in-charge and assistant inspectors-in-charge, audit area managers and deputy audit area managers. The inspectors-in-charge are Deputy Ethical Conduct Counselors for all other Inspection Service employees within their respective geographical jurisdiction. The audit area managers are the Deputy Ethical Conduct Counselors for all other area employees within their respective geographical jurisdiction. The Director, Procurement Division, Bureau of Facilities, is the Deputy Ethical Conduct Counselor for all field organizations under the jurisdiction of the Bureau of Facilities. The Director of Regional Administration is the Deputy Ethical Conduct Counselor for Regional Directors, Deputy Regional Directors, and Directors, Postal Data Centers.

(d) The Director, Postal Data Center, is the Deputy Ethical Conduct Counselor for employees of his data center, the Regional Director is the Deputy Ethical Conduct Counselor for his region, for all employees whose headquarters are within the geographical boundaries of his region, except for those employees who are under the jurisdiction of other Deputy Ethical Conduct Counselors. Postmasters of Part I WMS offices and installation heads of the North and South Suburban Facilities, Chicago, Ill., are Deputy Ethical Conduct Counselors for all employees under their respective jurisdiction.

(e) The Ethical Conduct Counselor may designate other suitable employees to assist him. A Deputy Ethical Conduct Counselor may, with the prior approval of the Ethical Conduct Counselor, designate other suitable employees to assist or act for him. The designees should have appropriate experience, preferably legal, personnel or employee relations, and be persons in whom the Ethical Conduct Counselor or Deputy Ethical Conduct Counselor has complete personal confidence.

§ 742.735-72 Reporting of employment and financial interests.

(a) The Ethical Conduct Counselor and the Deputy Postmaster General will file their statements of employment and

financial interests with the Postmaster General.

(b) Each statement of employment and financial interests and each supplementary statement shall be held in confidence and may not be disclosed without prior written approval of the Civil Service Commission or the Ethical Conduct Counselor. Such disclosure may only be approved for good cause. The Ethical Conduct Counselor and Deputy Ethical Conduct Counselors are responsible for the security and maintenance of the statements filed with each of them. Only the Postmaster General, Deputy Postmaster General, Ethical Conduct Counselor, Deputy Ethical Conduct Counselors or their respective designees are authorized to review and retain the statements. The Ethical Conduct Counselor may allow access to, or allow information to be disclosed from a statement of employment and financial interests only to carry out the purpose of this Part 742. Reports of any statements of employment and financial interests which may have to be transmitted from the person who is responsible for safeguarding this material to another who is authorized to receive it shall be enclosed in an opaque inner and outer envelope. The inner envelope shall be sealed and plainly marked "Confidential Statement of Employment and Financial Interests" and shall be addressed to the addressee. The outer envelope shall also be sealed and addressed but with no indication on the envelope of what the contents may be. Employees, when transmitting their statements, are authorized to utilize this double envelope procedure.

(c) (1) The statements of employment and financial interests and any supplements thereto shall be destroyed 2 years after an employee or special Government employee is separated from the position which requires submission of the statement, or 2 years after the employee or special Government employee leaves the Department, whichever is earlier.

(2) Also, the statement of an employee whose position is removed from the list of positions, the incumbents of which are required to file statements, shall be returned to the employee 2 years after such position is removed from the list. (d) An employee required to submit a statement of employment and financial interests under Subpart E of this Part 742 shall submit the statement to his Ethical Conduct Counselor or Deputy

Ethical Conduct Counselor, not later than 90 days after the effective date of this Part 742, if employed on or before that effective date. A new employee and a new special Government employee who is required to file a statement shall file it at the time of appointment. He should retain a copy for his own file. Changes in, or additions to, the information contained in an employee's Confidential Statement of Employment and Financial Interests shall be reported in a supplementary statement as of June 30 each year. Such statements shall be submitted by not later than July 15 following the preceding June 30 except that the time may be extended by the Ethical Conduct Counselor or Deputy Ethical Conduct Counselor, as appropriate, for good cause, such as annual or sick leave or because the employee or special Government employee is awaiting information from other sources. Although no changes or additions occur, a negative report is required. Notwithstanding the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of the conflicts of interest provisions of section 208 of Title 18, U.S. Code or this Part 742.

(e) The interest of a spouse, minor child (including a stepchild), or other member of an employee's immediate household is considered to be an interest of the employee. For the purpose of this section, member of an employee's immediate household means those blood relations who are regular residents of the employee's household. See also § 742.73528(a) (7). However, no member of an employee's immediate household is required to file a Confidential Statement of Employment and Financial Interests.

(f) If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf. This section does not require an employee to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee's connection with, or interest in, a professional society, or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar organization not con

ducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed business enterprises and are required to be included in an employee's statement of employment and financial interests. Saving accounts in credit unions or loan associations are not deemed interests in business enterprises.

(g) The statements of employment and financial interests and supplementary statements required of employees are in addition to, and not in substitution for, or in derogation of, any similar requirements imposed by other law or other order. The submission of a statement or supplementary statement does not permit an employee, or any other person, to participate in a matter in which his or the other person's participation is prohibited by law or other order.

(h) The statements of employment and financial interests will not be placed in personnel files and will not be transferred to any other agency in the event an employee transfers, or be disclosed to any person other than those specified in paragraph (b) of this section.

§ 742.735-73 Availability of counseling

services.

(a) All employees and special Government employees shall be notified of the availability of counseling services; how, where, when, and with whom they may consult and receive guidance.

(b) All personal information revealed in the course of guidance and counseling, including statements of employment and financial interests, and any supplements thereto, shall be given the maximum protection against disclosure to any person other than a person who is required or authorized by law, Executive order, or regulation to have access thereto.

§ 742.735-74 Advice concerning pos

sible conflict of interest.

(a) Whenever a possible conflict of interest of an employee or special Government employee comes to the attention of the Ethical Conduct Counselor or the cognizant Deputy Ethical Conduct Counselor, he shall make inquiries sufficient to ascertain whether such conflict exists. He shall advise the person of his conclusion and his proposal for elimination of any conflict and offer him an opportunity to explain the conflict or appear

ance of conflict. The proposal may consist of divestment of the conflicting interest or with the consent of the Bureau, Office or installation head either a change in assigned duties or a disqualification for a particular assignment. In appropriate cases he may recommend disciplinary action. If the Deputy Ethical Conduct Counselor cannot resolve the conflict or is in doubt as to the proper resolution thereof, he shall refer the matter to the Ethical Conduct Counselor.

(b) If the matter cannot be resolved by the Ethical Conduct Counselor then he shall report the matter to the Postmaster General.

(c) If the initial decision is made by the Ethical Conduct Counselor in cases involving employees listed in § 742.73571(a) and the matter cannot be satisfactorily resolved by him after discussion with the employee concerned, he will submit the matter to the Postmaster General.

(d) In the event the initial decision is made by the Ethical Conduct Counselor's designee or the Deputy Ethical Conduct Counselor's designee, it shall not be deemed conclusive until such determination is affirmed, reversed or modified by the Ethical Conduct Counselor or the Deputy Ethical Conduct Counselor.

§ 742.735-75 Disciplinary and other remedial action.

(a) When after consideration of the explanation of the employee or special Government employee, it is decided that remedial action is required, immediate action shall be taken to end the conflicts or appearance of conflict of interest. Remedial action may include, but is not limited to:

(1) Changes in assigned duties;

(2) Divestment by the employee or special Government employee of his conflicting interests;

(3) Disciplinary action; or

(4) Disqualification for a particular assignment.

(b) Remedial action, whether disciplinary or otherwise, shall be effected in accordance with any applicable laws, Executive orders, and regulations. However, neither the remedial action, nor disciplinary action nor other action taken under paragraph (a) of this section is subject to the grievance procedures under section 746.1 and 746.2 of the

Postal Manual since the employee or special Government employee is afforded the opportunity to present his case as provided in § 742.735-72 (a) through (d).

(c) The Ethical Conduct Counselor shall issue appropriate instructions from time to time to the Deputy Ethical Conduct Counselors to assure that the regulations, counseling and interpretations of matters covered by this part are consistent with laws, regulations and pertinent Executive orders and to insure uniformity of application throughout the Department.

§ 742.735-76 Establishment of review system.

There is hereby established a system of review which is designed to disclose conflicts of interest or apparent conflicts of interest on the part of employees and special Government employees. The Ethical Conduct Counselor, Deputy Ethical Conduct Counselors or their designees, immediately upon receipt of the statements of employment and financial interests from employees and special Government employees, shall examine such statements to assure that all information and disclosures required by the respective Confidential Statement of Employment and Financial Interests have been made and to determine whether potential conflicts of interest exist. The Confidential Statement of Employment and Financial Interests forms shall be furnished by the appropriate Personnel Office.

Subpart H-Informing Employees and Special Government Employees of Code of Ethical Conduct

§ 742.735-81 All employees and special Government employees.

(a) The Code of Ethical Conduct contained in this part and related parts of the Postal Manual containing instructions and guidance on the conduct of employees and special Government employees, shall be brought to their attention not less frequently than twice a year.

(b) New employees and new special Government employees: All employees and special Government employees new to the Department must be informed of this Part 742, Code of Ethical Conduct, at the time of their employment.

PART 743-EMPLOYEE SERVICES § 743.5 Vending machines operated by employee committees; assignment of profits to blind persons.

Profits from all vending machines presently operated by a licensed blind operator of a lobby stand, 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:

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

(b) Income which accrues to the operator from stand operation; and

(c) Profits from vending machines not operated in connection with the stand. (5 U.S.C. 301, 39 U.S.C. 501) [32 F.R. 4413, Mar. 23, 1967]

Employment Opportunity and established the authority of the Civil Service Commission to supervise and provide leadership policy for exclusion and prohibition of discrimination against any employee or applicant for employment in the Federal Government because of race, creed, color, or national origin. The Executive order points out that discrimination because of race, creed, color, or national origin is contrary to the constitutional principles and policies of the United States and that it is the policy of the Executive Branch of the Government to encourage by positive measures equal opportunity for all qualified persons within the Government.

(2) Executive Order 10980, dated December 14, 1961, states that women should be assured the opportunity to develop their capacities and fulfill their aspirations. Presidential memorandum of July 23, 1962, states that appointments and promotions must be made without regard to sex.

(3) Part 747 issued in conformity with and under the authority of Executive Order 11246 and Presidential memorandum of July 23, 1962 shall govern the administration of employment policies in the Post Office Department. The regulations in this part shall apply also to cases pending under Executive Order 10925, as amended, and regulations promulgated thereunder.

(b) Designation of equal employment opportunity officer. The Assistant Postmaster General, Bureau of Personnel, is the Equal Employment Opportunity Officer for the Post Office Department. He shall:

(1) Be directly responsible to the Postmaster General and have the authority necessary to enable him to carry out his responsibilities under the regulations in this part.

(2) Advise the Postmaster General regarding the preparation of regulations, reports, and other matters dealing with the exclusion and prohibition of discrimination under Executive Order 11246 and Presidential memorandum of July 23, 1962.

(3) Provide for the receipt and prompt investigation of complaints of alleged discrimination in personnel matters within the Post Office Department Headquarters and field installations, including complaints of general discrimination by organizations unrelated to a specific complaint under this Part 747.

(4) Evaluate from time to time the sufficiency of the total affirmative action program for equal employment opportunity and report thereon to the Postmaster General with recommendations as to any improvement or correction needed, including remedial or disciplinary action with respect to managerial or supervisory employees who have failed in their responsibilities.

(5) Make final decisions for the Department on complaints of discrimination and order such corrective measures as he deems necessary.

(6) Be responsible for developing a complete case record, including an adequate transcript or agreed summary of any hearing, sufficient to dispose of all relevant issues. Whenever necessary or appropriate for a full development of the case, the investigation shall include an appraisal of employment practices in the organizational segments or unit in which the alleged discrimination occurred.

(c) Designation of Deputy Equal Employment Opportunity Officers. The following officials are designated as Deputy Equal Employment Opportunity Officers for the indicated units, and as such are directly responsible to the Equal Employment Opportunity Officer in carrying out their functions as outlined in the regulations in this part.