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;

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 em

(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 proIvided 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

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 owned as a result of his employment or service performed, or other matters of a similar nature.

(4) Unless otherwise prohibited by subparagraphs (1) and (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 a particular matter involved is in a scientific or technical field and if the Ethical Conduct Counselor 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 proscriptions against political activity in Subchapter III of Chapter 73 of Title 5, United States Code, 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—(1) Voting. All officials and employees are encouraged to register and to vote as they may choose in all local, State and national elections. (See 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 polit

ical 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 contribution of money or other valuable thing for any political purpose.

(iv) Attendance at public and political meetings. Employees may join a political club or party. (See 837.1 of the Postal Manual for list of organizations in which membership is not considered consistent with the interest of the national security.) They may attend political and public gatherings and listen to political speeches. However, they may not serve as officers of, or organizers of, or preside over such gatherings.

(v) Political pictures. Any employee may display a political picture in his home, if he so desires. He may also display personally autographed pictures in his office providing it bears no language in the nature of campaigning.

(vi) Badges, buttons, and stickers. Employees may wear a political badge or button when not in uniform, not on duty, and during the time his duties do not require him to deal with the public or be in public view. Except when an employee's private vehicle is being used for official postal purposes (including lunch time) and it is not forbidden by local ordinance, he may display political stickers thereon.

(2) Campaigning forbidden. Employees may not take any active part in political management or in political campaigns. Expression of opinion on political subjects is permitted so long as it does not take the form of active participation in a campaign or party management. Employees may participate in nonpartisan local campaigns in which party designation, nomination and sponsorship are completely absent. Certain presidential appointees, including heads and assistant heads of departments and those appointed with Senate confirmation who determine national policy, are exempt from the political activity re