Title 39—Postal Service

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CHAPTER I—United States Postal Service ...... 1

CHAPTER III—Postal Regulatory Commission ...... 3000

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SUBCHAPTER A—THE BOARD OF GOVERNORS OF THE U.S. POSTAL SERVICE

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BYLAWS OF THE BOARD OF GOVERNORS 1 Postal policy [Article I] ...... 9 2 General and technical provisions [Article II] ...... 9 3 Board of Governors [Article III] ...... 10 4 Officials [Article IV] ...... 14 5 Committees [Article V] ...... 16 6 Meetings [Article VI] ...... 16 7 Public observation [Article VII] ...... 18 8–9 [Reserved] 10 Rules of conduct for Postal Service Governors [Ar- ticle X] ...... 22 11 Advisory boards [Article XI] ...... 23

SUBCHAPTER B—INTERNATIONAL MAIL 20 International Postal Service ...... 24

SUBCHAPTER C—POST OFFICE SERVICES [DOMESTIC MAIL]

GENERAL INFORMATION ON POSTAL SERVICE 111 General information on Postal Service ...... 26 121 Service standards for market-dominant mail products ...... 28 122 Service standards for market-dominant special services products ...... 35

SUBCHAPTER D—ORGANIZATION AND ADMINISTRATION 211 Application of regulations ...... 37 221 General organization...... 38 222 Delegations of authority ...... 41 223 Relationships and communication channels ...... 42

INSPECTION SERVICE REQUIREMENTS 230 Office of Inspector General ...... 43 3

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231 Protection of post offices ...... 52 232 Conduct on postal property ...... 53 233 Inspection Service authority ...... 56 235 Defense Department liaison ...... 88

POST OFFICE ORGANIZATION AND ADMINISTRATION 241 Establishment classification, and discontinuance .. 89 242 Change of site ...... 100 243 Conduct of offices ...... 100

GENERAL POSTAL ADMINISTRATION 254 Postal Service standards for facility accessibility pursuant to the Architectural Barriers Act ...... 101 255 Access of persons with disabilities to Postal Serv- ice programs, activities, facilities, and electronic and information technology ...... 102 259 Services performed for other agencies ...... 107

RECORDS AND INFORMATION 261 Records and information management ...... 109 262 Records and information management definitions 110 263 Records retention and disposition ...... 113 264 Vital records...... 113 265 Production or disclosure of material or information ...... 114 266 Privacy of information ...... 141 267 Protection of information ...... 152 268 Privacy of information—employee rules of conduct 155 273 Administration of Program Fraud Civil Remedies Act ...... 156

DAMAGE TO OR DESTRUCTION OF FIRM MAILINGS 281 Firm mailings damaged or destroyed through transportation accidents or catastrophes ...... 161

SUBCHAPTER E—RESTRICTIONS ON PRIVATE CARRIAGE OF LETTERS 310 Enforcement of the private express statutes ...... 163 320 Suspension of the private express statutes ...... 167

SUBCHAPTER F—PERSONNEL 447 Rules of conduct for postal employees ...... 174 491 Garnishment of salaries of employees of the Postal Service and the Postal Rate Commission ...... 178 4

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492 Administrative wage garnishment from non-postal sources ...... 181

SUBCHAPTER G—POSTAGE PROGRAMS 501 Authorization to manufacture and distribute postage meters ...... 182 551 Semipostal stamp program ...... 199

SUBCHAPTER H—PROCUREMENT SYSTEM FOR THE U.S. POSTAL SERVICE: INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS 601 Purchasing of property and services ...... 204 602 Intellectual property rights other than patents ..... 214

SUBCHAPTER I [RESERVED]

SUBCHAPTER J—POSTAL SERVICE DEBT OBLIGATIONS; DISBURSEMENT POSTAL MONEY ORDERS 760 Applicability of Treasury Department regulations 216 761 Book-entry procedures...... 216 762 Disbursement postal money orders ...... 219

SUBCHAPTER K—ENVIRONMENTAL REGULATIONS 775 National Environmental Policy Act procedures ..... 224 776 Floodplain and wetland procedures ...... 234

SUBCHAPTER L—SPECIAL REGULATIONS 777 Relocation assistance and real property acquisition policies ...... 239 778 Intergovernmental review of Postal Service facility actions ...... 258

SUBCHAPTER M [RESERVED]

SUBCHAPTER N—PROCEDURES

RULES OF PROCEDURE BEFORE THE OFFICE OF GENERAL COUNSEL 912 Procedures to adjudicate claims for personal injury or property damage arising out of the operation of the U.S. Postal Service ...... 262 913 Procedures for the issuance of administrative subpoenas under 39 U.S.C. 3016 ...... 265

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916 [Reserved]

RULES OF PROCEDURE BEFORE THE MAIL PROCESSING DEPARTMENT 927 Rules of procedure relating to fines, deductions, and damages ...... 267 931 Rules of procedure governing the compromise of obligations ...... 269

RULES OF PROCEDURE BEFORE THE POSTAL INSPECTION SERVICE 946 Rules of procedure relating to the disposition of stolen mail matter and property acquired by the Postal Inspection Service for use as evidence ...... 269

RULES OF PROCEDURE BEFORE THE JUDICIAL OFFICER 951 Procedure governing the eligibility of persons to practice before the Postal Service ...... 271 952 Rules of practice in proceedings relative to false representation and lottery orders ...... 273 953 Rules of practice in proceedings relative to mailability ...... 284 954 Rules of practice in proceedings relative to the denial, suspension, or revocation of periodicals mail privileges ...... 287 955 Rules of practice before the Postal Service Board of Contract Appeals ...... 293 956 [Reserved] 957 Rules of practice in proceedings relative to debarment from contracting ...... 305 958 Rules of practice in proceedings relative to civil penalties, clean-up costs and damages for violation of hazardous material regulations ...... 308 959 Rules of practice in proceedings relative to the private express statutes ...... 314 960 Rules relative to implementation of the Equal Ac- cess to Justice Act in Postal Service proceedings 322 961 Rules of practice in proceedings under section 5 of the Debt Collection Act ...... 328 962 Rules of practice in proceedings relative to the Program Fraud Civil Remedies Act ...... 332 963 Rules of practice in proceedings relative to violations of the pandering advertisements statute, 39 U.S.C. 3008 ...... 340 964 Rules of practice governing disposition of mail withheld from delivery pursuant to 39 U.S.C. 3003, 3004 ...... 344 6

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965 Rules of practice in proceedings relative to mail disputes ...... 349 966 Rules of practice in proceedings relative to administrative offsets initiated against former employees of the Postal Service ...... 351 967–999 [Reserved]

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Bylaws of the Board of Governors it has delegated, measures progress toward the goals it has set, and shapes PART 1—POSTAL POLICY (ARTICLE the policies to guide the future devel- I) opment of the Postal Service. Delega- tions of authority do not relieve the Sec. Board of full responsibility for carrying 1.1 Establishment of the U.S. Postal Serv- out its duties and functions, and are ice. revocable by the Governors in their ex- 1.2 Delegation of authority. clusive judgment. AUTHORITY: 39 U.S.C. 101, 202, 205, 401(2), 402, 403. PART 2—GENERAL AND TECHNICAL SOURCE: 73 FR 78983, Dec. 24, 2008, unless PROVISIONS (ARTICLE II) otherwise noted.

§ 1.1 Establishment of the U.S. Postal Sec. Service. 2.1 Office of the Board of Governors. 2.2 Agent for receipt of process. The U.S. Postal Service is estab- 2.3 Offices lished under the provisions of the Post- 2.4 Seal. al Reorganization Act (the Reorganiza- 2.5 Authority. tion Act) of 1970, Public Law 91–375, 84 2.6 Severability, amendment, repeal, and Stat. 719, as amended by the Postal Ac- waiver of bylaws. countability and Enhancement Act of 2006 (PAEA), Public Law 109–435, 120 AUTHORITY: 39 U.S.C. 202, 203, 205(c), 207, Stat. 3198, as an independent establish- 401(2); 5 U.S.C. 552b(f), (g). ment of the executive branch of the SOURCE: 73 FR 78983, Dec. 24, 2008, unless Government of the United States, otherwise noted. under the direction of a Board of Gov- ernors, with the Postmaster General as § 2.1 Office of the Board of Governors. its chief executive officer. The Board of There shall be located in Washington, Governors of the Postal Service (the DC an Office of the Board of Governors Board) directs the exercise of its pow- of the United States Postal Service. It ers through management that is ex- shall be the function of this Office to pected to be honest, efficient, economi- provide staff support for the Board, as cal, and mindful of the competitive directed by the Chairman of the Board, business environment in which the to enable the Board to carry out effec- Postal Service operates. The Board tively its duties and responsibilities. consists of nine Governors appointed by the President, by and with the ad- § 2.2 Agent for receipt of process. vice and consent of the Senate, to represent the public interest generally, to- The General Counsel of the Postal gether with the Postmaster General Service shall act as agent for the re- and Deputy Postmaster General. ceipt of legal process against the Post- al Service, and as agent for the receipt § 1.2 Delegation of authority. of legal process against the Board of Except for powers, duties, or obliga- Governors or a member of the Board, in tions specifically vested in the Gov- his or her official capacity, and all ernors by law, the Board may delegate other officers and employees of the its authority to the Postmaster Gen- Postal Service to the extent that the eral under such terms, conditions, and process arises out of the official func- limitations, including the power of re- tions of those officers and employees. delegation, as it finds desirable. The The General Counsel shall also issue bylaws of the Board are the framework public certifications concerning closed of the system through which the Board meetings of the Board as appropriate monitors the exercise of the authority under 5 U.S.C. 552b(f).

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§ 2.3 Offices. § 2.5 Authority. The principal office of the Postal These bylaws are adopted by the Service is located in Washington, DC, Board under the authority conferred with such regional and other offices upon the Postal Service by 39 U.S.C. and places of business as the Post- 401(2) and 5 U.S.C. 552b(g). master General establishes from time to time, or the business of the Postal § 2.6 Severability, amendment, repeal, Service requires. and waiver of bylaws. The invalidity of any provision of § 2.4 Seal. these bylaws does not affect the valid- (a) The Seal of the Postal Service is ity of the remaining provisions, and for filed by the Board in the Office of the this purpose these bylaws are sever- Secretary of State, and is required by able. The Board may amend or repeal 39 U.S.C. 207 to be judicially noticed. these bylaws at any special or regular The Seal shall be in the custody of the meeting, provided that each member of General Counsel, who shall affix it to the Board has received a written notice all commissions of officers of the Post- containing a statement of the proposed al Service, and use it to authenticate amendment or repeal at least 5 days records of the Postal Service and for before the meeting. The members of other official purposes. The following the Board may waive the 5 days’ notice describes the Seal adopted for the Post- or the operation of any other provision al Service: of these bylaws by unanimous consent, (1) A stylized bald eagle is poised for if that action is not prohibited by law. flight, facing to the viewer’s right, The Secretary shall submit the text of above two horizontal bars between any amendment to these bylaws for which are the words ‘‘U.S. MAIL’’, sur- publication in the FEDERAL REGISTER rounded by a square border with round- as soon as practicable after the amended corners consisting of the words ment is adopted by the Board. ‘‘UNITED STATES POSTAL SERV- ICE’’ on the left, top, and right, and PART 3—BOARD OF GOVERNORS consisting of nine five-pointed stars on (ARTICLE III) the base. (2) The color representation of the Sec. Seal shows, a white field on which the 3.1 Composition and responsibilities of bald eagle appears in dark blue, the Board. words ‘‘U.S. MAIL’’ in black, the bar 3.2 Compensation of Board. above the words in red, the bar below 3.3 Matters reserved for decision by the in blue, and the entire border con- Board. sisting of the words ‘‘UNITED STATES 3.4 Matters reserved for decision by the Governors. POSTAL SERVICE’’ and stars in ochre. 3.5 Delegation of authority by Board. 3.6 Information furnished to Board—financial and operating reports. 3.7 Information furnished to Board—program review. 3.8 Information furnished to Board—special reports. 3.9 Establishment of rates and classes of competitive products of general applicability. 3.10 Establishment of rates and classes of competitive products not of general applicability.

AUTHORITY: 39 U.S.C. 202, 203, 205, 401 (2), (10), 402, 404(b), 414, 416, 1003, 2005, 2011, 2802– 2804, 3013, 3622, 3632, 3642, 3652, 3654, 3691; 5 U.S.C. 552b(g), (j); 5 U.S.C. App.; Pub. L. 107– (b) The location and description of 67, 115 Stat. 514 (2001). the Postal Service emblem is described SOURCE: 73 FR 78983, Dec. 24, 2008, unless at 39 CFR 221.7. otherwise noted.

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§ 3.1 Composition and responsibilities (f) Approval of any use of the author- of Board. ity of the Postal Service to borrow The composition of the Board is de- money under 39 U.S.C. 2005 and 39 scribed in 39 U.S.C. 202. The Board di- U.S.C. 2011, except for short-term bor- rects the exercise of the powers of the rowings, having maturities of one year Postal Service, reviews the practices or less, assumed in the normal course and policies of the Postal Service, and of business. directs and controls the expenditures (g) Approval of the terms and condi- of the Postal Service. Consistent with tions of each series of obligations the broad delegation of authority to issued by the Postal Service under 39 the Postmaster General in § 3.5 of these U.S.C. 2005 and 39 U.S.C. 2011, including bylaws, and except for those powers, the time and manner of sale and the duties, or obligations which are specifi- underwriting arrangements, except for cally vested by statute in the Gov- short-term borrowings, having matu- ernors, as distinguished from the Board rities of one year or less, assumed in of Governors, the Board accomplishes the normal course of business. its purposes by monitoring the oper- (h) Approval of any use of the author- ations and performance of the Postal ity of the Postal Service to require the Service, and by establishing basic ob- Secretary of the Treasury to purchase jectives, broad policies, and long-range Postal Service obligations under 39 goals for the Postal Service. U.S.C. 2006(b), or to request the Sec- retary of the Treasury to pledge the § 3.2 Compensation of Board. full faith and credit of the Government Section 202(a)(1) of title 39 provides of the United States for the payment of for the compensation of the Governors principal and interest on Postal Serv- and for reimbursement for travel and ice obligations under 39 U.S.C. 2006(c). reasonable expenses incurred in attend- (i) Determination of the number of ing Board meetings. Compensation is officers, described in 39 U.S.C. 204 as provided for not more than 42 days of Assistant Postmasters General, wheth- meetings per year. er so denominated or not, as the Board authorizes by resolution. § 3.3 Matters reserved for decision by (j) Compensation and benefits of offi- the Board. cers of the Postal Service whose posi- The following matters are reserved tions are included in Level II of the for decision by the Board of Governors: Postal Career Executive Service. (a) Adoption of, and amendments to, (k) Approval of official statements the bylaws of the Board. adopting major policy positions or de- (b) (1) Approval of the annual Postal parting from established major policy Service Finance Plan; positions, and of official positions on (2) Approval of the annual Postal legislative proposals having a major Service Operating Plan; impact on the Postal Service. (3) Approval of the annual Postal (l) Approval of all major policy posi- Service Capital Plan. tions taken with the Department of (c) Approval of the annual financial Justice on petitioning the Supreme statements of the Postal Service fol- Court of the United States for writs of lowing receipt of the annual report of certiorari. the Postal Service’s independent, cer- (m) Approval and transmittal to the tified public accounting firm. President and the Congress of the an- (d) Authorization of the Postal Serv- nual report of the Postmaster General ice, in consultation with the Postal under 39 U.S.C. 2402. Regulatory Commission, to establish (n) Approval and transmittal to the service standards under 39 U.S.C. 3691. Congress of the annual report of the (e) Authorization of the Postal Serv- Board under 5 U.S.C. 552b(j). ice to request that the Postal Regu- (o) Approval of the annual com- latory Commission submit an advisory prehensive statement of the Postal opinion on a proposed change in the na- Service to Congress under 39 U.S.C. ture of postal services which will gen- 2401(e). erally affect service on a nationwide or (p) Approval and transmittal to the substantially nationwide basis. Congress of the semi-annual report of

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the Postmaster General under 39 U.S.C. Regulatory Commission for adjustment 3013, summarizing the investigative ac- of rates on an expedited basis due to tivities of the Postal Service. extraordinary or exceptional cir- (q) Approval and transmittal to the cumstances, as provided in 39 U.S.C. President and the Congress of the Post- 3622(d)(1)(E). al Service’s strategic plan pursuant to (i) Appointment and removal of the the Government Performance and Re- Inspector General under 39 U.S.C. sults Act of 1993, 39 U.S.C. 2802; ap- 202(e). proval of the Postal Service annual (j) Exercise of the authority of the performance plan under 39 U.S.C. 2803 Governors under 5 U.S.C. App. and the Postal Service program per- 8G(f)(3)(A). formance report under 39 U.S.C. 2804, (k) The Governors shall meet annu- which are included in the comprehen- ally in closed session to discuss com- sive statement under 39 U.S.C. 2401. pensation and benefits, term of service, (r) All other matters that the Board and appointment/removal of the Board may consider appropriate to reserve for Secretary and other necessary staff. its decision. (l) Transmittal to the Congress of the semi-annual report of the Inspector § 3.4 Matters reserved for decision by General under section 5 of the Inspec- the Governors. tor General Act. The following matters are reserved (m) Establishment of the price of the for decision by the Governors: breast cancer research special postage (a) Appointment, pay, term of serv- stamp under 39 U.S.C. 414 and any ice, and removal of the Postmaster semipostal stamp under 39 U.S.C. 416. General, 39 U.S.C. 202(c). (n) Selection of an independent, cer- (b) Appointment, term of service, and tified public accounting firm to certify removal of the Deputy Postmaster the accuracy of Postal Service finan- General (by the Governors and the cial statements as required by 39 U.S.C. Postmaster General, 39 U.S.C. 202(d)); 2008(e). pay of the Deputy Postmaster General, 39 U.S.C. 202(d). § 3.5 Delegation of authority by Board. (c) Election of the Chairman, 39 As authorized by 39 U.S.C. 402, these U.S.C. 202(a)(1), and Vice Chairman of bylaws delegate to the Postmaster the Board of Governors. General the authority to exercise the (d) Establishment of rates and classes powers of the Postal Service to the ex- of competitive products of both general tent that this delegation of authority and not of general applicability under does not conflict with powers reserved 39 U.S.C. 3632 in accordance with the to the Governors or to the Board by procedures set out in sections 3.9 and law, these bylaws, or resolutions adopt- 3.10 of these bylaws. ed by the Board. Any of the powers del- (e) Authorization of the Postal Serv- egated to the Postmaster General by ice to adjust the rates and fees for mar- these bylaws may be redelegated by the ket dominant products under 39 U.S.C. Postmaster General to any officer, em- 3622. ployee, or agency of the Postal Service. (f) Authorization of the Postal Serv- ice to request that the Postal Regu- § 3.6 Information furnished to Board— latory Commission, under 39 U.S.C. financial and operating reports. 3642, change the lists of market domi- (a) To enable the Board to monitor nant and competitive products by add- the performance of the Postal Service ing a product, removing a product, or during the most recent accounting pe- transferring a product. riods for which data are available, (g) Authorization of the Postal Serv- postal management shall furnish the ice to file a notice with the Postal Reg- Board (on a monthly basis) financial ulatory Commission of substantive and operating statements for the fiscal modifications to the product descrip- year to date, addressing the following tions in the Mail Classification Sched- categories: ule. (1) Mail volume by class; (h) Authorization of the Postal Serv- (2) Income and expense by principal ice to file a request with the Postal categories;

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(3) Balance sheet information; purposes of this paragraph, ‘‘signifi- (4) service quality measurements; cant’’ means a project anticipated to (5) productivity measurements (re- have a notable or conspicuous impact flecting workload and resource utiliza- on corporate visibility or the operating tion); and budget (including increases in expense (6) changes in postal costs. amounts) or the capital investment (b) These statements shall include, budget. The notification requirement where applicable, comparable figures of this paragraph governs applicable for the previous year and the current projects regardless of the level of ex- year’s plan. penditure or potential liability involved. § 3.7 Information furnished to Board— program review. § 3.8 Information furnished to Board— (a) To enable the Board to review the special reports. Postal Service operating program, To insure that the Board receives sig- postal management shall furnish the nificant information of developments Board information on all aspects of the meriting its attention, postal manage- Postal Service budget plan, including: ment shall bring to the Board’s atten- (1) The tentative and final annual tion the following matters: budgets submitted to the Office of (a) Major developments in personnel Management and Budget and the Con- areas, including but not limited to gress, and amendments to the budget; equal employment opportunity, career (2) Five-year plans, annual operating development and training, and grade and investment plans, and significant and salary structures. departures from estimates upon which the plans were based; (b) Major litigation activities. Postal (3) The need for rate adjustments and management shall also notify the the progress of any pending matters be- Board in a timely manner whenever it fore the Postal Regulatory Commission proposes to seek review by any United and related litigation; and States Court of Appeals of an adverse (4) Debt financing needs, including a judicial or regulatory decision signifi- review of all borrowings of the Postal cantly impacting the Postal Service or Service from the U.S. Treasury and pri- involving a new, novel, or potentially vate sources. controversial issue. (b) To enable the Board to review the (c) Any significant changes proposed effectiveness of the Postal Service’s in the Postal Service’s system of ac- equal employment opportunity pro- counts or methods of accounting. gram, performance data relating to (d) Matters of special importance, in- this program shall be furnished to the cluding but not limited to important Board at least quarterly. These data research and development initiatives, shall be categorized in such manner as major changes in Postal Service orga- the Board, from time to time, specifies. nization or structure, major law en- (c) Postal management shall also forcement activities, and other matters regularly furnish the Board informa- having a significant impact upon the tion regarding major programs for im- relationship of the Postal Service with proving postal service or reducing the its employees, with any major branch cost of postal operations. of Government, or with the general (d) Management shall furnish to the public. Board: information regarding any sig- (e) Information concerning any pro- nificant, new program, policy, major posed grant of unique or exclusive li- modification or initiative; any plan to censes to use Postal Service intellec- offer a significant, new or unique prod- tual properties (other than patents and uct or system implementation; or any technical data rights), or any proposed significant, new project not related di- joint venture involving the use of such rectly to the core business function of property. the Postal Service. This information (f) Major or significant financial, shall be provided to the Board in ad- operational and compliance reports or vance of entering into any agreement studies the Postal Service is required in furtherance of such project. For the by statute or regulation to prepare.

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(g) Other matters having important (2) Management analysis dem- policy implications. onstrating compliance with the standards of 39 U.S.C. 3633(a). § 3.9 Establishment of rates and class- (b) Pursuant to § 6.6(f) of these by- es of competitive products of gen- laws, the Governors shall issue a writ- eral applicability. ten decision on any changes in rates or This section relates to changes in classes of competitive products not of rates or classes of competitive products general applicability, which shall in- of general applicability. clude a statement as to when the deci- (a) Prior to establishing changes in sion becomes effective. rates or classes of competitive products (c) The Secretary shall certify that of general applicability, postal man- the vote of the Governors met the con- agement shall furnish to the Governors dition set forth in § 6.6(f) of these by- the following: laws. (1) The proposed rate and classifica- (d) The Secretary shall cause any de- tion changes; and cision of the Governors under this sec- (2) Management analysis dem- tion, along with the record of any pro- onstrating compliance with the stand- ceedings of the Governors, and any sup- ards of 39 U.S.C. 3633(a). porting documentation required by 39 CFR Part 3015, to be filed with the (b) Pursuant to § 6.6(f) of these by- Postal Regulatory Commission. The laws, the Governors shall issue a writ- record of the proceedings of the Gov- ten decision on any changes in rates or ernors consists of the certification by classes of competitive products of gen- the Secretary of the vote of the Gov- eral applicability, which shall include ernors. a statement as to when the decision be- (e) Postal management is authorized comes effective. to conclude agreements with customers (c) The Secretary shall certify that concerning any rates or classes of com- the vote of the Governors met the con- petitive products not of general appli- dition set forth in section 6.6(f) of these cability, provided that any such rates bylaws. are within the range, or such classes (d) The Secretary shall cause the de- are within the scope, of a decision of cision of the Governors and its at- the Governors then in effect. tached analysis, along with the record of the Governors’ proceedings in connection with such decision, to be pub- PART 4—OFFICIALS (ARTICLE IV) lished in the FEDERAL REGISTER at least 30 days before the effective date Sec. 4.1 Chairman. of the changes in rates or classes of 4.2 Vice Chairman. competitive products of general appli- 4.3 Postmaster General. cability. The record of the proceedings 4.4 Deputy Postmaster General. of the Governors consists of the certifi- 4.5 Assistant Postmasters General, General cation by the Secretary of the vote of Counsel, Judicial Officer, Chief Postal the Governors. Inspector. 4.6 Secretary of the Board.

§ 3.10. Establishment of rates and AUTHORITY: 39 U.S.C. 202–205, 401(2), (10), classes of competitive products not 402, 1003, 3013, 3686. of general applicability. SOURCE: 73 FR 78983, Dec. 24, 2008, unless This section relates to changes in otherwise noted. rates and classes of competitive products not of general applicability. § 4.1 Chairman. (a) Prior to establishing rates or (a) The Chairman of the Board of classes of competitive products not of Governors is elected by the Governors general applicability, postal manage- from among the members of the Board. ment shall furnish to the Governors The Chairman: the following: (1) Shall be elected at the Board’s (1) The proposed changes in rates or regularly scheduled November meeting ranges of rates, along with the pro- for a term that commences on Decem- posed changes in classes; and ber 1 of the calendar year in which the

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election occurred, or upon the death, resignation of the current Vice Chair- departure or resignation of the current man, whichever occurs first, and ex- Chairman, whichever occurs first, and pires upon the election and installation expires upon the election and installa- of a successor Vice Chairman. In the tion of a successor Chairman; event of the Vice Chairman’s death, de- (2) Shall preside at all regular and parture or resignation prior to the special meetings of the Board, and election of a successor, the Board, as shall set the agenda for such meetings; soon as practicable, shall elect a new (3) Shall select and appoint the chair- Vice Chairman who shall serve a term man, vice chairman (if any), and mem- that commences immediately upon bers of any committee properly estab- election and expires upon the election lished by the Board. and installation of a successor Vice (b) If the Postmaster General is Chairman. elected Chairman of the Board, the Governors shall also elect one of their [77 FR 17333, Mar. 26, 2012] number to preside during proceedings dealing with matters upon which only § 4.3 Postmaster General. the Governors may vote. The appointment and role of the (c) In the event of the Chairman’s Postmaster General are described at 39 death, departure or resignation prior to U.S.C. 202(c), 203. The Governors set the the election of a successor, the Board, compensation and benefits of the Post- as soon as practicable, shall elect a master General by resolution, subject new Chairman who shall serve a term to 39 U.S.C. 1003(a) and 3686. that commences immediately upon election and expires upon the election § 4.4 Deputy Postmaster General. and installation of a successor Chair- The appointment and role of the Dep- man. uty Postmaster General are described (d)(1) Upon the election and installa- at 39 U.S.C. 202(d), 203. The Deputy tion of a new Chairman of the Board, Postmaster General shall act as Post- the immediate past Chairman shall be- master General during the Postmaster come Chairman Pro Tempore of the General’s absence or disability, and Board, to preside during the absence of when a vacancy exists in the office of the Chairman and Vice Chairman at Postmaster General. The Governors set any meeting of the Board during the the compensation and benefits of the year or years following the immediate Deputy Postmaster General, subject to past Chairman’s tenure as Chairman 39 U.S.C. 1003(a) and 3686. and until another Chairman has been elected. § 4.5 Assistant Postmasters General, (2) The Chairman Pro Tempore shall, General Counsel, Judicial Officer, at the request of the Chairman or Vice Chief Postal Inspector. Chairman, serve as the representative There are within the Postal Service a of the Board of Governors at con- General Counsel, a Judicial Officer, a ferences, trade shows, ceremonial func- Chief Postal Inspector, and such num- tions and other meetings important to ber of officers, described in 39 U.S.C. Postal Service business. 204 as Assistant Postmasters General, [77 FR 17333, Mar. 26, 2012] whether so denominated or not, as the Board authorizes by resolution. These § 4.2 Vice Chairman. officers are appointed by, and serve at The Vice Chairman is elected by the the pleasure of, the Postmaster Gen- Governors from among the members of eral. The Chief Postal Inspector shall the Board and shall perform the duties report to, and be under the general su- and exercise the powers of the Chair- pervision of, the Postmaster General. man during the Chairman’s absence or The Postmaster General shall prompt- disability. The Vice Chairman is elect- ly notify the Governors and both ed at the Board’s regularly scheduled Houses of Congress in writing if he or November meeting for a term that she removes the Chief Postal Inspector commences on December 1 of the cal- or transfers the Chief Postal Inspector endar year in which the election oc- to another position or location within curred or upon the death, departure or the Postal Service, and shall include in

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any such notification the reasons for terms which expire at the end of each such removal or transfer. annual meeting. Each committee chairman may assign responsibilities § 4.6 Secretary of the Board. to members of the committee that are The Secretary of the Board of Gov- considered appropriate. The committee ernors is appointed by the Governors chairman, or the chairman’s designee, and serves at the pleasure of the Gov- shall preside at all meetings of the ernors. The Secretary shall be respon- committee. sible for carrying out the functions of the Office of the Board of Governors, § 5.2 Committee procedure. under the direction of the Chairman of Each committee establishes its own the Board. The Secretary shall also rules of procedure, consistent with issue notices of meetings of the Board these bylaws, and meets as provided in and its committees, keep minutes of its rules. A majority of the members of these meetings, and take steps nec- a committee constitute a quorum. essary for compliance with all statutes and regulations dealing with public ob- PART 6—MEETINGS (ARTICLE VI) servation of meetings. The Secretary shall perform all those duties incident Sec. to this office, including those duties as- 6.1 Regular meetings, annual meeting. signed by the Board or by the Chair- 6.2 Special meetings. man of the Board. The Chairman may 6.3 Notice of meetings. designate such assistant secretaries as 6.4 Attendance by conference telephone may be necessary to perform any of the call. duties of the Secretary. 6.5 Minutes of meetings. 6.6 Quorum and voting. PART 5—COMMITTEES (ARTICLE V) 6.7 Notation voting. AUTHORITY: 39 U.S.C. 202, 205, 401(2), (10), Sec. 1003, 3622, 3632; 5 U.S.C. 552b(e), (g). 5.1 Establishment and appointment. SOURCE: 73 FR 78983, Dec. 24, 2008, unless 5.2 Committee procedure. otherwise noted. AUTHORITY: 39 U.S.C. 202, 203, 204, 205, 401(2), (10), 1003. § 6.1 Regular meetings, annual meeting. SOURCE: 73 FR 78983, Dec. 24, 2008, unless otherwise noted. The Board shall meet regularly on a schedule established by the Board. The § 5.1 Establishment and appointment. first regular meeting of each calendar From time to time the Board may es- year is designated as the annual meet- tablish by resolution special and standing. Consistent with the provisions of ing committees of one or more mem- §§ 6.6 and 7.5 of these bylaws, the time bers of the Board. The Board shall or place of a regular or annual meeting specify, in the resolution establishing may be varied by recorded vote, with any committee, whether the com- the earliest practicable notice to the mittee is authorized to submit rec- Secretary. The Secretary shall dis- ommendations or preliminary deci- tribute to the members an agenda set- sions to the Board, to conduct hearings ting forth the proposed subject matter for the Board, or otherwise to take ac- for any regular or annual meeting in tion on behalf of the Board. Each com- advance of the meeting. mittee may exercise only those duties, functions, and powers prescribed from § 6.2 Special meetings. time to time by the Board, and the Consistent with the provisions of Board may affirm, alter, or revoke any §§ 6.6 and 7.5 of these bylaws, the Chair- action of any committee. Each member man may call a special meeting of the of the Board may have access to all of Board at any place in the United the information and records of any States, with the earliest practicable committee at any time. The Chairman notice to the other members of the of the Board shall appoint the chair- Board and to the Secretary, specifying man, vice chairman (if any), and mem- the time, date, place, and subject mat- bers of each committee, who serve ter of the meeting. Consistent with the

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provisions of §§ 6.6 and 7.5 of these by- of meetings. Attendance at a meeting laws, by recorded vote a majority of by this method constitutes presence at the members of the Board may call a the meeting and a member of the Board special meeting of the Board at any may be paid for his or her participation place in the United States, with the provided such meeting addresses sub- earliest practicable notice to the other stantive, as opposed to procedural or members of the Board and to the Sec- administrative, matters on which the retary, specifying the time, date, place Board has decisionmaking authority. and subject matter of the meeting. § 6.5 Minutes of meetings. § 6.3 Notice of meetings. The Secretary shall preserve the The Chairman or the members of the minutes of Board meetings prepared Board may give the notice required under § 4.6 of these bylaws. After the under § 6.1 or § 6.2 of these bylaws in oral, written, or e-mail form. Oral no- minutes of any meeting are approved tice to a member may be delivered by by the Board, the Secretary shall telephone and is sufficient if made to promptly make available to the public, the member personally or to a respon- in the Corporate Communications De- sible person in the member’s home or partment at Postal Service Head- office. Any oral notice to a member quarters, or in another place easily ac- must be subsequently confirmed by cessible to the public, copies of the written or e-mail notice. Written no- minutes, except for those portions tice to a member may be delivered by which contain information inappro- mail addressed to the member’s mail- priate for public disclosure under 5 ing address of record filed with the Sec- U.S.C. 552(b) or 39 U.S.C. 410(c). retary. Notice by e-mail may be addressed to the member’s e-mail address § 6.6 Quorum and voting. of record filed with the Secretary. Ex- As provided by 39 U.S.C. 205(c), and cept for written or e-mail notice con- except for routine, non-controversial, firming a previous oral notice, a writ- and administrative matters considered ten or e-mail notice must be sent in through the notation voting process sufficient time to reach the address of described in § 6.7, the Board acts by res- record at least 2 days before the meet- olution upon a majority vote of those ing date under normal delivery condi- members who attend a meeting in per- tions. A member waives notice of any son or by teleconference. No proxies meeting by attending the meeting, and are allowed in any vote of the members may otherwise waive notice of any of the Board. Any 6 members con- meeting at any time. No notice— stitute a quorum for the transaction of whether oral, written, or e-mail—to business by the Board, except: the Secretary is sufficient until actu- (a) In the appointment or removal of ally received by the Secretary. The the Postmaster General, and in setting Secretary may not waive notice of any the compensation and benefits of the meeting. Postmaster General and Deputy Post- § 6.4 Attendance by conference tele- master General, 39 U.S.C. 205(c)(1) re- phone call. quires a favorable vote of an absolute For regularly scheduled meetings of majority of the Governors in office; the Board, members are expected to at- (b) In the appointment or removal of tend in person. Unless prohibited by the Deputy Postmaster General, 39 law or by these bylaws, however, a U.S.C. 205(c)(2) requires a favorable member of the Board, under excep- vote of an absolute majority of the tional circumstances, may participate Governors in office and the Postmaster in a meeting of the Board by con- General; ference telephone or similar commu- (c) In the appointment, removal, or nications equipment which enables all in the setting of the compensation and persons participating in the meeting to benefits of the Secretary, Assistant hear each other and which permits full Secretary, or other necessary staff, a compliance with the provisions of these favorable vote of an absolute majority bylaws concerning public observation of the Governors in office is required;

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(d) In the determination to close a action, and must promptly take action portion of a meeting or to withhold in- to place the particular matter on the formation concerning a meeting, 5 agenda of the next regularly scheduled U.S.C. 552b(d)(1) requires a vote of a Board meeting following the date of majority of the entire membership of the veto, or to schedule a teleconfer- the Board; and ence to consider the matter, as appro- (e) In the decision to call a meeting priate. with less than a week’s notice, 5 U.S.C. (d) Disclosure of result. The Secretary 552b(e)(1) requires a vote of a majority shall maintain all records pertaining to of the members of the Board. In the de- Board actions taken pursuant to the cision to change the subject matter of notation voting process, and shall a meeting, or the determination to make such records available for public open or close a meeting, 5 U.S.C. inspection, consistent with the Free- 552b(e)(2) requires a vote of a majority dom of Information Act, 5 U.S.C. 552. of the entire membership of the Board. (f) In establishing rates or classes of [77 FR 17334, Mar. 26, 2012] competitive products of both general and not of general applicability in §§ 3.9 PART 7—PUBLIC OBSERVATION and 3.10 of these bylaws, 39 U.S.C. (ARTICLE VII) 3632(a) requires the concurrence of a majority of all of the Governors then Sec. holding office. 7.1 Definitions. (g) In removing the Inspector General 7.2 Open meetings. 7.3 Exceptions. for cause, 39 U.S.C. 202(e) requires the 7.4 Procedure for closing a meeting. written concurrence of at least 7 Gov- 7.5 Public notice of meetings, subsequent ernors. changes. 7.6 Certification and transcripts of closed [73 FR 78983, Dec. 24, 2008, as amended at 77 meetings. FR 17334, Mar. 26, 2012] 7.7 Enforcement. 7.8 Open meetings, Freedom of Information, § 6.7 Notation voting. and Privacy of Information. (a) General. Notation voting consists AUTHORITY: 39 U.S.C. 410; 5 U.S.C. 552b(a)– of the circulation of written memo- (m). randa and voting sheets to each member of the Board simultaneously and SOURCE: 73 FR 78983, Dec. 24, 2008, unless the tabulation of submitted responses. otherwise noted. Notation voting may be used only for § 7.1 Definitions. routine, non-controversial, and administrative matters. For purposes of §§ 7.2 through 7.8 of (b) Administrative Responsibility. The these bylaws: Secretary of the Board is responsible (a) The term Board means the Board for: of Governors, and any subdivision or (1) Distributing notation voting committee of the Board authorized to memoranda and voting sheets; take action on behalf of the Board. (2) Establishing deadlines for nota- (b) The term meeting means the delib- tion voting sheets to be completed and erations of at least the number of indi- returned; vidual members required to take ac- (3) Processing and tabulating all no- tion on behalf of the Board under § 5.2 tation voting sheets; and or § 6.6 of these bylaws, where such de- (4) Determining whether further ac- liberations determine or result in the tion is required. joint conduct or disposition of the offi- (c) Veto of notation voting. In view of cial business of the Board. The term the public policy for openness reflected ’’meeting’’ does not include any proce- in the Government in the Sunshine Act dural deliberations required or per- and in these bylaws, each Board mem- mitted by §§ 6.1, 6.2, 7.4, or 7.5 of the by- ber is authorized to veto the use of no- laws in this chapter, or the notation tation voting for the consideration of voting process described in § 6.7 of the any matter. If a Board member vetoes bylaws in this chapter. the use of notation voting, the Sec- [73 FR 78983, Dec. 24, 2008, as amended at 77 retary must notify all members of such FR 17334, Mar. 26, 2012]

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§ 7.2 Open meetings. (1) Specifically authorized under cri- (a) It is the policy of the United teria established by an Executive order States, established in section 2 of the to be kept secret in the interests of na- Government in the Sunshine Act, Pub- tional defense or foreign policy, and lic Law 94–409, 90 Stat. 1241, that the (2) In fact properly classified under public is entitled to the fullest prac- that Executive order; ticable information regarding the deci- (b) Relate solely to the internal per- sionmaking processes of the Federal sonnel rules and practices of the Postal Government. The Postal Service is Service, including the Postal Service charged to provide the public with this position in negotiations or consulta- information while protecting the rights tions with employee organizations. of individuals and the ability of the (c) Disclose matters specifically ex- Government to carry out its respon- empted from disclosure by statute sibilities. Accordingly, except as spe- (other than the Freedom of Informa- cifically permitted by statute, every tion Act, 5 U.S.C. 552), provided that portion of every meeting of the Board the statute: of Governors is open to public observa- (1) Requires that the matters be tion. withheld from the public in such a (b) Except as provided in § 7.3 of these manner as to leave no discretion on the bylaws, every portion of every meeting issue, or of the Board is open to public observa- (2) Establishes particular criteria for tion. Members of the Board may not withholding or refers to particular jointly conduct or dispose of business types of matters to be withheld; of the Board without complying with (d) Disclose trade secrets and com- §§ 7.2 through 7.8 of these bylaws. Mem- mercial or financial information ob- bers of the public may obtain access to tained from a person and privileged or documents considered at meetings to confidential, such as market informa- the extent provided in the regulations tion pertinent to Postal Service bor- of the Postal Service concerning the rowing or investments, technical or release of information. patent information related to postal (c) Without the permission of a ma- mechanization, or commercial infor- jority of the Board, no person may par- mation related to purchases of real es- ticipate in, film, televise, or broadcast tate; any portion of any meeting of the (e) Involve accusing any person of a Board. Any person may electronically crime, or formally censuring any per- record or photograph a meeting, as son; long as that action does not tend to (f) Disclose information of a personal impede or disturb the members of the nature, such as personal or medical Board in the performance of their du- data regarding any individual if disclo- ties, or members of the public while at- sure would constitute a clearly unwar- tempting to attend or observe a meet- ranted invasion of personal privacy; ing of the Board. The rules and pen- (g) Disclose investigatory records alties of 39 CFR Part 232, concerning compiled for law enforcement purposes, conduct on postal property, apply with or information which if written would regard to meetings of the Board. be contained in those records, but only to the extent that the production of § 7.3 Exceptions. those records or information would: Section 7.2 of these bylaws does not (1) Interfere with enforcement pro- apply to a portion of a meeting, and ceedings, §§ 7.4 and 7.5 do not apply to informa- (2) Deprive a person of a right to a tion concerning the meeting which oth- fair trial or an impartial adjudication, erwise would be required to be dis- (3) Constitute an unwarranted inva- closed to the public, if the Board prop- sion of personal privacy, erly determines that the public inter- (4) Disclose the identity of a con- est does not require otherwise, and fidential source and, in the case of a that such portion of the meeting or the record compiled by a criminal law en- disclosure of such information is likely forcement authority in the course of a to: criminal investigation, or by an agency (a) Disclose matters that are: conducting a lawful national security

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intelligence investigation, confidential take a single vote with respect to a se- information furnished only by the con- ries of meetings, portions of which are fidential source, proposed to be closed to the public, or (5) Disclose investigative techniques with respect to information concerning and procedures, or the series, so long as each portion of a (6) Endanger the life or physical safe- meeting in the series involves the same ty of law enforcement personnel; particular matters, and no portion of (h) Disclose information contained in any meeting is scheduled to be held or related to examination, operating, more than 30 days after the initial por- or condition reports prepared by, on be- tion of the first meeting in the series. half of, or for the use of an agency re- (b) Whenever any person whose inter- sponsible for the regulation or super- est may be directly affected by a por- vision of financial institutions; tion of a meeting requests that the (i) Disclose information the pre- Board close that portion to the public mature disclosure of which would be for any of the reasons referred to in likely significantly to frustrate imple- § 7.3(e), (f), or (g) of these bylaws, upon mentation of a proposed action of the request of any one of its members the Board, such as information relating to Board shall vote by recorded vote the negotiation of a labor contract or whether to close that portion of the proposed Postal Service procurement meeting. activity, except that this provision (c) The Secretary shall record the does not apply in any instance where: vote of each member participating in a (1) The Postal Service has already vote under paragraph (a) or (b) of this disclosed to the public the content or section. Within 1 day of any vote under nature of the proposed action, or paragraph (a) or (b) of this section, the (2) The Postal Service is required by Secretary shall make publicly avail- law to make such disclosure on its own able a written copy of the vote showing initiative before taking final action on the vote of each member on the ques- the proposal; or (j) Specifically concern the issuance tion. If a portion of a meeting is to be of a subpoena by the Postal Service, or closed to the public, the Secretary the participation of the Postal Service shall, within 1 day of the vote, make in a civil action or proceeding, such as publicly available a full written expla- a postal rate or classification pro- nation of the action closing the por- ceeding, an action in a foreign court or tion, together with a list of all persons international tribunal, or an arbitra- expected to attend the meeting and tion, or the initiation, conduct, or dis- their affiliation. position by the Postal Service of a par- § 7.5 Public notice of meetings, subse- ticular case of formal adjudication quent changes. under the procedures of 5 U.S.C. 554 or otherwise involving a determination on (a) At least one week before any the record after opportunity for a hear- meeting of the Board, the Secretary ing. shall publicly announce the time, date, place, and subject matter of the meet- § 7.4 Procedure for closing a meeting. ing, whether it is to be open or closed (a) A majority of the entire member- to the public, and the name and phone ship of the Board may vote to close a number of the official designated by portion of a meeting or to withhold in- the Board to respond to requests for information concerning a meeting under formation about the meeting. the provisions of § 7.3 of these bylaws. (b) By a recorded vote, a majority of The members shall take a separate the members of the Board may deter- vote with respect to each meeting a mine that the business of the Board re- portion of which is proposed to be quires a meeting to be called with less closed to the public, or with respect to than a week’s notice. At the earliest any information which is proposed to practicable time, the Secretary shall be withheld, and shall make every rea- publicly announce the time, date, sonable effort to take any such vote at place, and subject matter of the meet- least 8 days before the date of the ing, and whether it is to be open or meeting involved. The members may closed to the public.

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(c) Following the public announce- plete verbatim copy of the transcript, ment required by paragraphs (a) or (b) or a complete electronic recording of of this section: each meeting or portion of a meeting (1) As provided in § 6.1 of these by- closed to the public for at least 2 years laws, the Board may change the time after the meeting, or for 1 year after or place of a meeting. At the earliest the conclusion of any Postal Service practicable time, the Secretary shall proceeding with respect to which the publicly announce the change. meeting was held, whichever occurs (2) A majority of the entire member- later. ship of the Board may change the sub- (c) Except for those items of discus- ject matter of a meeting, or the deter- sion or testimony which the Board, by mination to open or close a meeting to a majority vote of those members who the public, if it determines by a re- are present, determines to contain in- corded vote that the change is required formation which may be withheld by the business of the Board and that under § 7.3 of these bylaws, the Sec- no earlier announcement of the change retary shall promptly make available was possible. At the earliest prac- to the public, in the Corporate Commu- ticable time, the Secretary shall pub- nications Department at Postal Serv- licly announce the change, and the ice Headquarters, or in another place vote of each member upon the change. easily accessible to the public, the (d) Immediately following each pub- transcript or electronic recording of a lic announcement required under para- closed meeting, including the testi- graphs (a), (b), or (c) of this section, mony of any witnesses received at the the Secretary shall submit for publica- meeting. The Secretary shall furnish a tion in the FEDERAL REGISTER a notice copy of this transcript, or a tran- of the time, date, place, and subject scription of this electronic recording matter of the meeting, whether the disclosing the identity of each speaker, meeting is open or closed, any change to any person at the actual cost of du- in the preceding, and the name and plication or transcription. phone number of the official designated by the Board to respond to requests for § 7.7 Enforcement. information about the meeting. The (a) Under 5 U.S.C. 552b(g), any person Secretary shall also submit the an- may bring a proceeding in the United nouncement and information to the States Court of Appeals for the District Corporate Communications Depart- of Columbia to set aside any provisions ment for dissemination to the public. of these bylaws which are not in accord with the requirements of 5 U.S.C. 552b § 7.6 Certification and transcripts of (a)–(f) and to require the promulgation closed meetings. of provisions that are in accord with (a) At the beginning of every meeting those requirements. or portion of a meeting closed under (b) Under 5 U.S.C. 552b(h) any person § 7.3(a) through (j) of these bylaws, the may bring a civil action against the General Counsel shall publicly certify Board in an appropriate U.S. District that, in his or her opinion, the meeting Court to obtain judicial review of the or portion of the meeting may be alleged failure of the Board to comply closed to the public, stating each rel- with 5 U.S.C. 552b(a)–(f). The burden is evant exemptive provision. The Sec- on the Board to sustain its action. The retary shall retain this certification, court may grant appropriate equitable together with a statement from the of- relief, including enjoining future viola- ficer presiding at the meeting which tions, or ordering the Board to make sets forth the time and place of the public information improperly with- meeting, and the persons present. held from the public. (b) The Secretary shall arrange for a (c) Under 5 U.S.C. 552b(i) the court complete transcript or electronic re- may assess against any party reason- cording adequate to record fully the able attorney fees and other litigation proceedings to be made of each meet- costs reasonably incurred by any other ing or portion of a meeting of the party who substantially prevails, ex- Board which is closed to the public. cept that the court may assess costs The Secretary shall maintain a com- against the plaintiff only if the court

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finds that he initiated the suit pri- of Government Ethics, including 5 CFR marily for frivolous or dilatory pur- part 2638. poses. (b) A Governor may obtain advice and guidance on questions of conflicts § 7.8 Open meetings, Freedom of Infor- of interest, and may request any ruling mation, and Privacy of Information. provided for by either the Standards of The provisions of 5 U.S.C. 552b(c) (1)– Ethical Conduct for Employees of the (10), enacted by Public Law 94–409, the Executive Branch, or the Postal Serv- Government in the Sunshine Act, gov- ice regulations supplemental thereto, ern in the case of any request under from the General Counsel or a des- the Freedom of Information Act, 5 ignated assistant. U.S.C. 552, to copy or to inspect the (c) If the General Counsel determines transcripts or electronic recordings de- that a Governor is engaged in activity scribed in § 7.6 of these bylaws. Nothing which involves a violation of federal in 5 U.S.C. 552b authorizes the Board to statute or regulation, including the withhold from any individual any ethical conduct regulations contained record, including the transcripts or in 5 CFR parts 2635 and 7001, or conduct electronic recordings described in § 7.6 which creates the appearance of such a of these bylaws, to which the indi- violation, he or she shall bring this to vidual may otherwise have access the attention of the Governor or shall under 5 U.S.C. 552a, enacted by the Pri- notify the Chairman of the Board of vacy Act of 1974, Public Law 93–579. Governors, or the Vice Chairman, as appropriate.

PARTS 8–9 [RESERVED] § 10.3 Post-employment activities. Governors are subject to the restric- PART 10—RULES OF CONDUCT FOR tions on the post-employment activi- POSTAL SERVICE GOVERNORS ties of special Government employees (ARTICLE X) imposed by 18 U.S.C. 207. Guidance concerning post-employment restrictions Sec. applicable to Governors may be ob- 10.1 Applicability. tained in accordance with section 10.2 Advisory service. 10.3 Post-employment activities. 10.2(b). 10.4 Financial disclosure reports. § 10.4 Financial disclosure reports. AUTHORITY: 39 U.S.C. 401(2), (10). (a) Requirement of submission of re- SOURCE: 73 FR 78983, Dec. 24, 2008, unless ports. At the time of their nomination, otherwise noted. Governors complete a financial disclosure report which, under the practice § 10.1 Applicability. of the Senate Governmental Affairs This part contains rules of conduct Committee, is kept confidential. Be- for the members of the Board of Gov- cause the Director of the Office of Gov- ernors of the United States Postal ernment Ethics has ruled that Gov- Service. As special employees within ernors who do not perform the duties of the meaning of 18 U.S.C. 202(a), the their office for more than 60 days in members of the Board are also subject any calendar year are not required to to the Standards of Ethical Conduct for file financial disclosure reports that Employees of the Executive Branch, 5 are open to the public, Governors file CFR part 2635, and Postal Service regu- non-public reports annually, in accord- lations supplemental thereto, 5 CFR ance with this section. A Governor who part 7001. performs the duties of his or her office for more than 60 days in a particular § 10.2 Advisory service. calendar year is required to file a pub- (a) The General Counsel is the Eth- lic report in accordance with 5 CFR ical Conduct Officer of the Postal Serv- 2634.204(c). ice and the Designated Agency Ethics (b) Person with whom reports should be Official for purposes of the Ethics in filed and time for filing. (1) A Governor Government Act, as amended, and the shall file a financial disclosure report implementing regulations of the Office with the General Counsel on or before

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May 15 of each year when the Governor (3) The General Counsel shall refer to has been in office for more than 60 con- the Chairman of the Board of Gov- secutive calendar days during the pre- ernors or the Vice Chairman the name vious year. of any Governor he or she has reason- (2) The General Counsel may, for able cause to believe has wrongfully good cause shown, grant to a Governor failed to file a report or has falsified or an extension of up to 45 days. An addi- wrongfully failed to report required in- tional extension of up to 45 days may formation. be granted by the Director of the Office (e) Custody of and public access to re- of Government Ethics for good cause ports. (1) Retention of reports. Each re- shown. port filed with the General Counsel (c) Information required to be reported. Each report shall be a full and com- shall be retained by him or her for a plete statement, on the form prescribed period of six years. After the six-year by the General Counsel and the Office period, the report shall be destroyed of Government Ethics and in accord- unless needed in connection with an in- ance with instructions issued by him or vestigation then pending. her. The form currently in use is (2) Confidentiality of reports. Unless a Standard Form 278. public report is required by this sec- (d) Reviewing reports. (1) Financial tion, the financial disclosure reports disclosure reports filed in accordance filed by Governors shall not be made with the provisions of this section public. shall, within 60 days after the date of filing, be reviewed by the General PART 11—ADVISORY BOARDS Counsel who shall either approve the report, or make an initial determina- (ARTICLE XI) tion that a conflict or appearance thereof exists. If the General Counsel AUTHORITY: 39 U.S.C. 202, 205, 401(2), (10), determines initially that a conflict or 402, 403. the appearance of a conflict exists, he or she shall inform the Governor of his § 11.1 Establishment. determination. The Board of Governors may create (2) If the General Counsel considers such advisory boards as it may deem that additional information is needed appropriate and may appoint persons to complete the report or to allow an to serve thereon or may delegate such adequate review to be conducted, he or latter authority to the Postmaster she shall request the reporting Gov- General. ernor to furnish that information by a specified date. [73 FR 78983, Dec. 24, 2008]

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PART 20—INTERNATIONAL POSTAL TABLE 1 TO PARAGRAPH (b)—Continued SERVICE International Mail Manual Date of issuance

Sec. Issue 11 ...... December 24, 1992. 20.1 International Mail Manual; incorpora- Issue 12 ...... July 8, 1993. Issue 13 ...... February 3, 1994. tion by reference. Issue 14 ...... August 4, 1994. 20.2 Effective date of the International Mail Issue 15 ...... July 9, 1995. Manual. Issue 16 ...... January 4, 1996. 20.3 Availability of the International Mail Issue 17 ...... September 12, 1996. Manual. Issue 18 ...... June 9, 1997. 20.4 Amendments to the International Mail Issue 19 ...... October 9, 1997. Issue 20 ...... July 2, 1998. Manual. Issue 21 ...... May 3, 1999. 20.5 [Reserved] Issue 22 ...... January 1, 2000. Issue 23 ...... July 1, 2000. AUTHORITY: 5 U.S.C. 552(a); 13 U.S.C. 301– Issue 24 ...... January 1, 2001. 307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, 401, 403, Issue 25 ...... July 1, 2001. 404, 407, 414, 416, 3001–3011, 3201–3219, 3403–3406, Issue 26 ...... January 1, 2002. 3621, 3622, 3626, 3632, 3633, and 5001. Issue 27 ...... June 30, 2002. Issue 28 ...... January 1, 2003. SOURCE: 69 FR 59546, Oct. 5, 2004, unless Issue 29 ...... July 1, 2003. otherwise noted. Issue 30 ...... August 1, 2004. Issue 31 ...... May 31, 2005. § 20.1 International Mail Manual; in- Issue 35 ...... May 12, 2008. corporation by reference. Issue 36 ...... May 11, 2009. IMM ...... April 17, 2011. (a) Section 552(a) of title 5, U.S.C., re- IMM ...... June 24, 2012. lating to the public information re- IMM ...... January 26, 2015. IMM ...... July 11, 2016. quirements of the Administrative Pro- IMM ...... January 22, 2017. cedure Act, provides in pertinent part that matter reasonably available to [75 FR 34017, June 16, 2010, as amended at 76 the class of persons affected thereby is FR 50414, Aug. 15, 2011; 77 FR 64724, Oct. 23, deemed published in the FEDERAL REG- 2012; 80 FR 13493, Mar. 16, 2015; 81 FR 66822, ISTER when incorporated by reference Sept. 29, 2016; 82 FR 29005, June 27, 2017] therein with the approval of the Direc- tor of the Federal Register. In con- § 20.2 Effective date of the Inter- formity with that provision and 39 national Mail Manual. U.S.C. 410(b)(1), and as provided in this The provisions of the International part, the Postal Service hereby incor- Mail Manual issued January 22, 2017, porates by reference its International are applicable with respect to the Mail Manual (IMM), issued January 22, international mail services of the Post- 2017. The Director of the Federal Reg- al Service. ister approves this incorporation by reference in accordance with 5 U.S.C. [82 FR 29005, June 27, 2017] 552(a) and 1 CFR part 51. § 20.3 Availability of the International (b) The current Issue of the IMM is Mail Manual. incorporated by reference in paragraph Copies of the International Mail (a) of this section. Successive Issues of Manual may be purchased from the Su- the IMM are listed in Table 1: perintendent of Documents, U.S. Gov- TABLE 1 TO PARAGRAPH (b) ernment Printing Office, Washington, DC 20402–9371. The IMM is available for International Mail Manual Date of issuance examination on the Internet at http:// Issue 1 ...... November 13, 1981. pe.usps.gov. Copies are available for Issue 2 ...... March 1, 1983. public inspection during regular busi- Issue 3 ...... July 4, 1985. ness hours at area and district offices Issue 4 ...... September 18, 1986. Issue 5 ...... April 21, 1988. of the Postal Service and at all post of- Issue 6 ...... October 5, 1988. fices, classified stations, and classified Issue 7 ...... July 20, 1989. branches. You may also inspect a copy Issue 8 ...... June 28, 1990. Issue 9 ...... February 3, 1991. at the U.S. Postal Service Library, 475 Issue 10 ...... June 25, 1992. L’Enfant Plaza West SW., Washington,

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DC 20260–1641, or at the National Ar- erence into this part and will be avail- chives and Records Administration able at http://pe.usps.gov. The text of (NARA). For information on the avail- amendments to the International Mail ability of this material at NARA, call Manual will be published in the FED- 202–741–6030, or go to: http:// ERAL REGISTER and will be available in www.archives.gov/federallregister/ the Postal Bulletin, copies of which codeloflfederallregulations/ may be accessed at http://www.usps.com/ ibrllocations.html. cpim/ftp/bulletin/pb.htm. § 20.4 Amendments to the Inter- national Mail Manual. § 20.5 [Reserved] New issues of the International Mail Manual will be incorporated by ref-

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General Information on Postal § 111.2 Availability of the Mailing Service Standards of the United States Postal Service, Domestic Mail Man- ual. PART 111—GENERAL INFORMA- (a) Copies of the Mailing Standards TION ON POSTAL SERVICE of the United States Postal Service, Domestic Mail Manual, both current Sec. and previous issues, are available dur- 111.1 Mailing Standards of the United ing regular business hours for reference States Postal Service, Domestic Mail and public inspection at the U.S. Post- Manual; incorporation by reference of al Service Library, National Head- regulations governing domestic mail quarters in Washington, DC. Copies of services. only the current issue are available 111.2 Availability of the Mailing Standards of the United States Postal Service, Do- during regular business hours for pub- mestic Mail Manual. lic inspection at area and district of- 111.3 Amendments to the Mailing Standards fices of the Postal Service and at all of the United States Postal Service, Do- post offices, classified stations, and mestic Mail Manual. classified branches. The Mailing Stand- 111.4 Approval of the Director of the Fed- ards of the United States Postal Serv- eral Register. ice, Domestic Mail Manual is available 111.5 [Reserved] for examination on the Internet at http://pe.usps.gov. AUTHORITY: 5 U.S.C. 552(a); 13 U.S.C. 301- 307; 18 U.S.C. 1692-1737; 39 U.S.C. 101, 401, 403, (b) A copy of the current Mailing 404, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, Standards of the United States Postal 3622, 3626, 3632, 3633, and 5001. Service, Domestic Mail Manual is on file at the National Archives and SOURCE: 44 FR 39852, July 6, 1979, unless Records Administration (NARA). For otherwise noted. information on the availability of this § 111.1 Mailing Standards of the material at NARA, call 202–741–6030, or United States Postal Service, Do- go to: http://www.archives.gov/ mestic Mail Manual; incorporated federallregister/ by reference of regulations gov- codeloflfederallregulations/ erning domestic mail services. ibrllocations.html. (c) Subscriptions to the Mailing Section 552(a) of title 5, U.S.C., relat- Standards of the United States Postal ing to the public information require- Service, Domestic Mail Manual can be ments of the Administrative Procedure purchased by the public from the Su- Act, provides in pertinent part that ‘‘* perintendent of Documents, Wash- * * matter reasonably available to the ington, DC 20402–9375. class of persons affected thereby is deemed published in the FEDERAL REG- [62 FR 14827, Mar. 28, 1997, as amended at 69 ISTER when incorporated by reference FR 18803, Apr. 9, 2004; 69 FR 59139, Oct. 4, 2004; therein with the approval of the Direc- 70 FR 14535, Mar. 23, 2005] tor of the Federal Register.’’ In con- § 111.3 Amendments to the Mailing formity with that provision, and with Standards of the United States 39 U.S.C. section 410(b)(1), and as pro- Postal Service, Domestic Mail Man- vided in this part, the U.S. Postal Serv- ual. ice hereby incorporates by reference in (a) Except for interim or final regula- this part, the Mailing Standards of the tions published as provided in para- United States Postal Service, Domestic graph (b) of this section, only notices Mail Manual, a looseleaf document rather than complete text of changes published and maintained by the Post- made to the Mailing Standards of the al Service. United States Postal Service, Domestic [62 FR 14827, Mar. 28, 1997, as amended at 69 Mail Manual are published in the FED- FR 59139, Oct. 4, 2004; 70 FR 14535, Mar. 23, ERAL REGISTER. These notices are pub- 2005] lished in the form of one summary

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transmittal letter for each issue of the Postal Bulletin as provided in para- Mailing Standards of the United States graph (c) are not deemed final under Postal Service, Domestic Mail Manual. the provisions of this part 111. A complete issue of the Mailing Stand- (f) For references to amendments to ards of the United States Postal Serv- the Mailing Standards of the United ice, Domestic Mail Manual, including States Postal Service, Domestic Mail the text of all changes published to Manual adopted under paragraph (b) of date, will be filed with the Director, Of- this section after issuance of the most fice of the Federal Register. Sub- recent transmittal letter (termed Sum- scribers to the Mailing Standards of mary of Changes in the Mailing Stand- the United States Postal Service, Do- ards of the United States Postal Serv- mestic Mail Manual receive the latest ice, Domestic Mail Manual) listed issue of the Mailing Standards of the below, see § 111.3 in the List of CFR United States Postal Service, Domestic Sections affected at the end of this vol- Mail Manual from the Government ume. Printing Office. Transmittal letter Dated FEDERAL REG- (b) When the Postal Service invites for issue ISTER publication comments from the public on a proposed change to the Mailing Standards 1 ...... July 30, 1979 ...... 44 FR 39742. 2 ...... May 15, 1980 ...... 45 FR 42616. of the United States Postal Service, 3 ...... July 30, 1980 ...... 45 FR 73925. Domestic Mail Manual, the proposed 4 ...... Oct. 1, 1980 ...... 46 FR 10154. change and, if adopted, the full text of 5 ...... Mar. 1, 1981 ...... 46 FR 25446. 6 ...... July 7, 1981 ...... 46 FR 58079. the interim or the final regulation is 7 ...... Nov. 1, 1981 ...... 47 FR 8179. published in the FEDERAL REGISTER. 8 ...... Jan. 21, 1982 ...... 47 FR 8358. (c) The Postal Bulletin contains the 9 ...... May 1, 1982 ...... 47 FR 27266. full text of all interim and final regula- 10 ...... Aug. 1, 1982 ...... 47 FR 43952. 11 ...... Jan. 20, 1983 ...... 48 FR 10649. tions published as provided in para- 13 ...... Dec. 29, 1983 ...... 49 FR 18304. graph (b) of this section, and the full 14 ...... Apr. 12, 1984 ...... 49 FR 26228. text of all other changes to the Mailing 15 ...... July 12, 1984 ...... 49 FR 33248. 16 ...... Sept. 27, 1984 ...... 49 FR 47232. Standards of the United States Postal 17 ...... Dec. 20, 1984 ...... 50 FR 5580. Service, Domestic Mail Manual that 18 ...... Feb. 21, 1985 ...... 50 FR 12019. are summarized in the notices pub- 19 ...... June 7, 1985 ...... 50 FR 30834. 20 ...... Nov. 14, 1985 ...... 51 FR 8495. lished under paragraph (a) of this sec- 21 ...... Sept. 4, 1986 ...... 51 FR 43910. tion, except for nonsubstantive 22 ...... Jan.22, 1987 ...... 52 FR 10750. changes and corrections of typo- 23 ...... May 1, 1987 ...... 52 FR 23981. graphical errors. The Postal Bulletin is 24 ...... Sept. 20, 1987 ...... 52 FR 34778. 25 ...... Dec. 20, 1987 ...... 52 FR 48437. a biweekly document issued by the 26 ...... April 3, 1988 ...... 53 FR 18557. Postal Service to amend and revise 27 ...... June 19, 1988 ...... 53 FR 21821. policies and procedures. A 1-year sub- 28 ...... Sept. 18, 1988 ...... 53 FR 35315. 29 ...... Dec.18, 1988 ...... 53 FR 49658. scription to the Postal Bulletin and 30 ...... Mar. 19, 1989 ...... 54 FR 9212. certain back copies can be purchased 31 ...... June 18, 1989 ...... 54 FR 27880. by the public from the Superintendent 32 ...... Sept. 17, 1989 ...... 54 FR 37795. of Documents, Washington, DC 20402– 33 ...... Dec. 17, 1989 ...... 54 FR 50619. 34 ...... Mar. 18, 1990 ...... 55 FR 10061. 9371. 35 ...... June 17, 1990 ...... 55 FR 24561. (d) Interim regulations published in 36 ...... Sept. 16, 1990 ...... 55 FR 40658. full text or referenced as provided in 37 ...... Dec. 16, 1990 ...... 56 FR 1112. 38 ...... Feb. 24, 1991 ...... 56 FR 11513. paragraphs (b) and (c) of this section, 39 ...... June 16, 1991 ...... 56 FR 56015. are published, as appropriate, in the 40 ...... September 15, 1991 56 FR 56013. Mailing Standards of the United States 41 ...... December 15, 1991 .. 57 FR 21611. Postal Service, Domestic Mail Manual 42 ...... March 15, 1992 ...... 57 FR 21613. 43 ...... June 21, 1992 ...... 57 FR 37884. in full text or referenced at the place 44 ...... September 20, 1992 61 FR 67218. where they would appear if they be- 45 ...... December 20, 1992 .. 61 FR 67218. come final regulations. 46 ...... July 1, 1993 ...... 61 FR 67218. 47 ...... April 10, 1994 ...... 61 FR 67218. (e) Announcements of changes to the 48 ...... January 1, 1995 ...... 61 FR 67218. Mailing Standards of the United States 49 ...... September 1, 1995 ... 61 FR 67218. Postal Service, Domestic Mail Manual 50 ...... July 1, 1996 ...... 61 FR 60190. not published in the FEDERAL REGISTER 51 ...... January 1, 1997 ...... 61 FR 64618. 52 ...... July 1, 1997 ...... 62 FR 30457. as provided in paragraphs (a) and (b) of 53 ...... January 1, 1998 ...... 62 FR 63851. this section and not published in the 54 ...... January 10, 1999 ...... 64 FR 39.

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Transmittal letter Dated FEDERAL REG- § 121.1 First-Class Mail. for issue ISTER publication (a)(1) Until January 5, 2015, a 1-day 55 ...... January 10, 2000 ...... 65 FR 1321. (overnight) service standard is applied 56 ...... January 7, 2001 ...... 66 FR 8370. 57 ...... June 30, 2002 ...... 67 FR 46875. to intra-Sectional Center Facility 58 ...... August 10, 2003 ...... 68 FR 66018. (SCF) domestic First-Class Mail® Premier Edition .. January 6, 2005 ...... 70 FR 14535. pieces properly accepted before the Issue 300 ...... January 8, 2006 ...... 73 FR 25509. day-zero Critical Entry Time (CET), Issue 300 ...... July 15, 2007 ...... 73 FR 25509. Issue 300 ...... May 12, 2008 ...... 75 FR 31702. except for mail between Puerto Rico Issue 300 ...... May 11, 2009 ...... 75 FR 31702. and the U.S. Virgin Islands, mail be- Issue 300 ...... May 7, 2008 ...... 73 FR 25508. tween American Samoa and Hawaii, Issue 300 ...... May 11, 2009 ...... 75 FR 31702. DMM 300 ...... July 5, 2011 ...... 76 FR 48722. and mail destined to the following 3- DMM 300 ...... June 24, 2012 ...... 77 FR 45246. digit ZIP Code areas in Alaska (or des- DMM 300 ...... January 25, 2015 ...... 80 FR 13492. ignated portions thereof): 995 (5-digit DMM 300 ...... July 11, 2016 ...... 81 FR 66822. ZIP Codes 99540 through 99599), 996, 997, DMM ...... January 22, 2017 ...... 82 FR 28559. 998, and 999. (2) On and after January 5, 2015, a 1- [45 FR 40115, June 13, 1980] day (overnight) service standard is ap- EDITORIAL NOTE: For FEDERAL REGISTER ci- plied to intra-SCF domestic Presort tations affecting § 111.3, see the List of CFR First-Class Mail pieces properly ac- Sections Affected, which appears in the cepted at the SCF before the day-zero Finding Aids section of the printed volume CET, except for mail between Puerto and at www.fdsys.gov. Rico and the U.S. Virgin Islands, and § 111.4 Approval of the Director of the mail destined to American Samoa and Federal Register. the following 3-digit ZIP Code areas in Alaska (or designated portions there- Incorporation by reference of the of): 995 (5-digit ZIP Codes 99540 through publication now titled the Mailing 99599), 996, 997, 998, and 999. Standards of the United States Postal (b)(1) Until January 5, 2015, a 2-day Service, Domestic Mail Manual was ap- service standard is applied to inter- proved by the Director of the Federal SCF domestic First-Class Mail pieces Register under 5 U.S.C 552(a) and 1 CFR properly accepted before the day-zero part 51 on June 23, 2017. CET if the drive time between the ori- (5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408, gin Processing & Distribution Center 3001–3011, 3201–3218, 3403–3405, 3601, 3621; 42 or Facility (P&DC/F) and destination U.S.C. 1973cc–13, 1973cc–14) Area Distribution Center (ADC) is 6 [49 FR 47389, Dec. 4, 1984, as amended at 70 hours or less; or if the origin and des- FR 14535, Mar. 23, 2005; 73 FR 25509, May 7, tination are separately in Puerto Rico 2008; 75 FR 31702, June 4, 2010; 76 FR 48722, and the U.S. Virgin Islands; or if the Aug. 9, 2011; 77 FR 45247, July 31, 2012; 81 FR origin or destination is in American 66823, Sept. 29, 2016; 82 FR 28560, June 23, 2017] Samoa or one of the following 3-digit ZIP Code areas in Alaska (or des- § 111.5 [Reserved] ignated portions thereof): 995 (5-digit ZIP Codes 99540 through 99599), 996, 997, PART 121—SERVICE STANDARDS 998, and 999. FOR MARKET-DOMINANT MAIL (2) On and after January 5, 2015, a 2- PRODUCTS day service standard is applied to intra-SCF single piece domestic First- Sec. Class Mail properly accepted before the 121.1 First-Class Mail. day-zero CET, inter-SCF domestic 121.2 Periodicals. First-Class Mail pieces properly ac- 121.3 Standard Mail. cepted before the day-zero CET if the 121.4 Package Services. drive time between the origin P&DC/F APPENDIX A TO PART 121—SERVICE STANDARD and destination SCF is 6 hours or less, DAY RANGE TABLES Presort First-Class Mail properly ac- AUTHORITY: 39 U.S.C., 101, 401, 403, 404, 1001, cepted before the day-zero CET with an 3691. origin and destination that are sepa- SOURCE: 72 FR 72228, Dec. 19, 2007, unless rately in Puerto Rico and the U.S. Vir- otherwise noted. gin Islands, and intra-SCF Presort

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First-Class Mail properly accepted be- Mail pieces properly accepted before fore the day-zero CET with an origin or the day-zero CET. destination that is in American Samoa (f) The service standard for Outbound or one of the following 3-digit ZIP Code Single-Piece First-Class Mail Inter- areas in Alaska (or designated portions national TM; pieces properly accepted thereof): 995 (5-digit ZIP Codes 99540 before the day-zero CET is equivalent through 99599), 996, 997, 998, and 999. to the service standard for domestic (c) A 3-day service standard is applied First-Class Mail pieces originating to domestic First-Class Mail pieces from the same 3-digit ZIP Code area properly accepted before the day-zero and destined to the 3-digit ZIP Code CET, if the 1-day and 2-day service area in which the designated Inter- standards do not apply, and: national Service Center is located. (1) Both the origin and the destina- (g) The service standard for Inbound tion are within the contiguous 48 Single-Piece First-Class Mail Inter- states; national pieces properly accepted be- (2) The origin is in the contiguous 48 fore the day-zero CET is equivalent to states, and the destination is in any of the service standard for domestic the following: the city of Anchorage, First-Class Mail pieces destined to the Alaska (5-digit ZIP Codes 99501 through same 3-digit ZIP Code area and origi- 99539); the 968 3-digit ZIP Code area in nating from the 3-digit ZIP Code area Hawaii; or the 006, 007, or 009 3-digit in which the designated International ZIP Code areas in Puerto Rico; Service Center is located. (3) The origin is in the 006, 007, or 009 [77 FR 31196 May 25, 2012, as amended at 79 3-digit ZIP Code areas in Puerto Rico, FR 4080, Jan. 24, 2014; 79 FR 44701, Aug. 1, and the destination is in the contig- 2014] uous 48 states; (4) The origin is in Hawaii, and the § 121.2 Periodicals. destination is in Guam, or vice versa; (a) End-to-End. (1)(i) Until January 5, (5) The origin is in Hawaii, and the 2015, a 2- to 4-day service standard is destination is in American Samoa, or applied to Periodicals pieces properly vice versa; or accepted before the day-zero Critical (6) Both the origin and destination Entry Time (CET) and merged with are within Alaska. First-Class Mail pieces for surface (d) A 4-day service standard is ap- transportation (as per the Domestic plied to domestic First-Class Mail Mail Manual (DMM)), with the stand- pieces properly accepted before the ard specifically equaling the sum of 1 day-zero CET, if the 1-day, 2-day, and 3- day plus the applicable First-Class day service standards do not apply, Mail service standard; and: (ii) On and after January 5, 2015, a 3- (1) The origin is in the contiguous 48 to 4-day service standard is applied to states and the destination is in any of Periodicals pieces properly accepted the following: any portion of Alaska before the day-zero CET and merged other than the city of Anchorage (5- with First-Class Mail pieces for surface digit ZIP Codes 99501 through 99539); transportation (as per the DMM), with any portion of Hawaii other than the the standard specifically equaling the 968 3-digit ZIP Code area; or the U.S. sum of 1 day plus the applicable First- Virgin Islands; Class Mail service standard. (2) The destination is in the contig- (2) A 3-day service standard is applied uous 48 states and the origin is in Alas- to Periodicals pieces properly accepted ka, Hawaii, or the U.S. Virgin Islands; before the day-zero CET if: the origin or and destination are separately in Puer- (3) The origin and destination are in to Rico and the U.S. Virgin Islands; or different non-contiguous states or ter- if the origin is in Alaska, the service ritories, excluding mail to and from standards set forth in paragraphs Guam and mail between Puerto Rico (a)(1)(i) and (ii) do not apply, and the and the U.S. Virgin Islands. destination is in the following 3-digit (e) A 5-day service standard is applied ZIP Code areas in Alaska (or des- to all remaining domestic First-Class ignated portions thereof): 995 (5-digit

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ZIP Codes 99540 through 99599), 996, 997, night) service standard is applied to 998, and 999. Periodicals pieces that qualify for a (3) A 4-day service standard is applied DSCF rate and are properly accepted to Periodicals pieces properly accepted before the day-zero CET at the des- before the day-zero CET if: the origin ignated DSCF, except for mail entered and destination are separately in Ha- at the SCF in Puerto Rico and destined waii and Guam; or the origin and des- to the U.S. Virgin Islands, mail entered tination are separately in Hawaii and at the SCF in Hawaii and destined to American Samoa. American Samoa, and mail destined to (4)(i) A 5- to 8-day service standard is the following 3-digit ZIP Code areas in applied to Periodicals pieces properly Alaska (or designated portions there- accepted before the day-zero CET if of): 995 (5-digit ZIP Codes 99540 through they originate and destinate within the 99599), 996, 997, 998, and 999; contiguous 48 states, they are not (ii) A 3-day service standard is ap- merged with First-Class Mail pieces for plied to Periodicals pieces that qualify surface transportation (as per the for a DSCF rate and are properly ac- DMM), and the Area Distribution Cen- cepted before the day-zero CET at the ter (ADC) and Sectional Center Facil- designated DSCF, if the they are en- ity (SCF) are co-located, with the tered at the DSCF in Puerto Rico and standard specifically equaling the sum destined to the U.S. Virgin Islands, en- of 4 days plus the number of additional tered at the DSCF in Hawaii and des- days (from 1 to 4) required for surface tined to American Samoa, or destined transportation between the applicable to the following 3-digit ZIP Code areas 3-digit ZIP Code origin-destination in Alaska (or designated portions pairs; thereof): 995 (5-digit ZIP Codes 99540 (ii) A 6- to 9-day service standard is through 99599), 996, 997, 998, and 999. applied to Periodicals pieces properly (3) Destination Area Distribution Center accepted before the day-zero CET if (DADC) Entered Mail. (i) A 1-day (over- they originate and destinate within the night) service standard is applied to contiguous 48 states, they are not Periodicals pieces that qualify for a merged with First-Class Mail pieces for DADC rate and are properly accepted surface transportation (as per the before the day-zero CET at the des- DMM), and the ADC and SCF are not ignated DADC, if the DADC and DSCF co-located, with the standard specifi- are co-located; cally equaling the sum of 5 days plus (ii) A 2-day service standard is ap- the number of additional days (from 1 plied to Periodicals pieces that qualify to 4) required for surface transpor- for a DADC rate and are properly ac- tation between the applicable 3-digit cepted before the day-zero CET at the ZIP Code origin-destination pairs; designated DADC, if the DADC and (5) A 12- to 26-day service standard is DSCF are not co-located, unless the applied to all remaining Periodicals mail is entered at a DADC within the pieces properly accepted before the contiguous 48 states and destined out- day-zero CET, with the standard spe- side the contiguous 48 states, or en- cifically equaling the sum of 5 days tered at the DADC in Puerto Rico and plus the number of additional days destined to the U.S. Virgin Islands, or (from 7 to 21) required for intermodal destined to either American Samoa or (highway, boat, air-taxi) transpor- the following 3-digit ZIP Code areas in tation outside the contiguous 48 states Alaska (or designated portions therefor the applicable 3-digit ZIP Code ori- of): 995 (5-digit ZIP Codes 99540 through gin-destination pairs. 99599), 996, 997, 998, and 999; (b) Destination Entry. (1) Destination (iii) A 4-day service standard is ap- Delivery Unit (DDU) Entered Mail. A 1- plied to Periodicals pieces that qualify day (overnight) service standard is ap- for a DADC rate and are properly ac- plied to Periodicals pieces that qualify cepted before the day-zero CET at the for a DDU rate and are properly accept- designated DADC, if they are entered ed before the day-zero CET at the des- at the DADC in Puerto Rico and designated DDU. tined to the U.S. Virgin Islands, or if (2) Destination Sectional Center Facility they are destined to American Samoa (DSCF) Entered Mai.l (i) A 1-day (over- or the following 3-digit ZIP Code areas

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in Alaska (or designated portions § 121.3 Standard Mail. thereof): 995 (5-digit ZIP Codes 99540 (a) End-to-End. (1) The service stand- through 99599), 996, 997, 998, and 999; ard for Sectional Center Facility (SCF) (iv) An 11-day service standard is ap- turnaround Standard Mail® pieces ac- plied to Periodicals pieces that qualify cepted at origin before the day-zero for a DADC rate, are properly accepted Critical Entry Time is 3 days when the before the day-zero CET at the des- origin Processing & Distribution Cen- ignated DADC in the contiguous 48 ter/Facility (OPD&C/F) and the SCF states, and are destined to the 998 or are the same building, except for mail 999 3-digit ZIP Code areas in Alaska. between the territories of Puerto Rico (4) Destination Network Distribution and the U.S. Virgin Islands. Center (DNDC)/Auxiliary Service Facility (2) The service standard for Area Dis- (ASF) Entered Mail. (i) A 2-day service tribution Center (ADC) turnaround standard is applied to Periodicals Standard Mail pieces accepted at ori- pieces that qualify for a DADC contain- gin before the day-zero Critical Entry erized rate, are properly accepted be- Time is 4 days when the OPD&C/F and fore the day-zero CET at the des- the ADC are the same building, unless ignated DNDC or ASF in the contig- the ADC is in the contiguous 48 states and the delivery address is not, or the uous 48 states, and are destined within mail is between Puerto Rico and the the contiguous 48 states, if the DADC U.S. Virgin Islands, or the mail is be- and DSCF are co-located; tween Hawaii and American Samoa. (ii) A 3-day service standard is ap- (3) The service standard for intra- plied to Periodicals pieces that qualify Network Distribution Center (NDC) for a DADC containerized rate, are Standard Mail pieces accepted at ori- properly accepted before the day-zero gin before the day-zero Critical Entry CET at the designated DNDC or ASF in Time is 5 days for each remaining 3- the contiguous 48 states, and are des- digit ZIP Code origin-destination pair tined within the contiguous 48 states, within the same Network Distribution if the DADC and DSCF are not co-lo- Center service area if the origin and cated; destination are within the contiguous (iii) An 8- to 10-day service standard 48 states; the same standard applies to is applied to Periodicals pieces that mail that is intra-Alaska or between qualify for a DADC containerized rate, the state of Hawaii and the territory of are properly accepted before the day- Guam or American Samoa. zero CET at the designated DNDC or (4) For each remaining 3-digit ZIP ASF in the contiguous 48 states, and Code origin-destination pair within the are destined outside the contiguous 48 contiguous 48 states, the service stand- states, if the DADC and DSCF are co- ard for Standard Mail pieces accepted located, with the specific standard at origin before the day-zero Critical being based on the number of days re- Entry Time is the sum of 5 or 6 days quired for transportation outside the plus the number of additional days contiguous 48 states; (from 1 to 4) required for surface trans- (iv) A 9- to 11-day service standard is portation between each 3-digit ZIP applied to Periodicals pieces that qual- Code origin-destination pair. ify for a DADC containerized rate, are (5) For each remaining 3-digit ZIP Code origin-destination pair, the serv- properly accepted before the day-zero ice standard for Standard Mail pieces CET at the designated DNDC or ASF in accepted at origin before the day-zero the contiguous 48 states, and are des- Critical Entry Time is the sum of 5 or tined outside the contiguous 48 states, 6 days plus the number of additional if the DADC and DSCF are not co-lo- days (from 7 to 21) required for inter- cated, with the specific standard being modal (highway, boat, air-taxi) trans- based on the number of days required portation outside the contiguous 48 for transportation outside the contig- states for each 3-digit ZIP Code origin- uous 48 states. destination pair. [77 FR 31196, May 25, 2012, as amended at 79 (b) Destination Entry. (1) Standard FR 4080, Jan. 24, 2014; 79 FR 44701, Aug. 1, Mail pieces that qualify for a Destina- 2014] tion Delivery Unit (DDU) rate and that

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are accepted before the day-zero Crit- day-zero Critical Entry Time is 2 days ical Entry Time at the proper DDU when the origin Processing & Distribu- have a 2-day service standard. tion Center/Facility and the SCF are (2) Standard Mail pieces that qualify the same building, except for mail be- for a DSCF rate and that are accepted tween the territories of Puerto Rico before the day-zero Critical Entry and the U.S. Virgin Islands, and mail Time at the proper DSCF have a 3-day destined to American Samoa. service standard when accepted on (2) The service standard for intra- Sunday through Thursday and a 4-day Network Distribution Center (NDC) service standard when accepted on Fri- Package Services mail accepted at ori- day or Saturday, except for mail gin before the day-zero Critical Entry dropped at the SCF in the territory of Time is 3 days, for each remaining Puerto Rico and destined to the terri- (non-intra-SCF) 3-digit ZIP Code ori- tory of the U.S. Virgin Islands, or mail gin-destination pair within a Network destined to American Samoa. Distribution Center service area, where (3) Standard Mail pieces that qualify the origin and destination is within the for a Destination Sectional Center Fa- contiguous 48 states and is not served cility (DSCF) rate and that are accept- by an Auxiliary Service Facility; and ed before the day zero Critical Entry for mail between the territories of Time at the SCF in the territory of Puerto Rico and the U.S. Virgin Is- Puerto Rico and destined for the terri- lands, and for mail destined to Amer- tory of the U.S. Virgin Islands, or are ican Samoa. destined to American Samoa, have a 4- (3) The service standard for intra- day service standard when accepted on Network Distribution Center (NDC) Sunday through Thursday and a 5-day Package Services mail accepted at ori- service standard when accepted on Fri- gin before the day-zero Critical Entry day or Saturday. Time is 4 days for each remaining 3- (4) Standard Mail pieces that qualify digit ZIP Code origin-destination pair for a Destination Network Distribution within a Network Distribution Center Center (DNDC) rate, and that are ac- service area, where the destination de- cepted before the day-zero Critical livery address is served by an Auxiliary Entry Time at the proper DNDC have a Service Facility; the same standard ap- 5-day service standard, if both the ori- plies to all remaining intra-Alaska gin and the destination are in the con- mail and mail between the state of Ha- tiguous 48 states. waii and the territory of Guam, and (5) Standard Mail pieces that qualify mail destined to American Samoa. for a Destination Network Distribution (4) For each remaining 3-digit ZIP Center (DNDC) rate, and that are ac- Code origin-destination pair within the cepted before the day-zero Critical contiguous 48 states, the service stand- Entry Time at the proper DNDC in the ard for Package Services mail accepted contiguous 48 states for delivery to ad- at origin before the day-zero Critical dresses in the states of Alaska or Ha- Entry Time is between 5 and 8 days. waii or the territories of Guam, Amer- For each such 3-digit ZIP Code origin- ican Samoa, Puerto Rico, or the U.S. destination pair, this is the sum of 4 Virgin Islands, have a service standard days, plus the number of additional of 12–14 days, depending on the 3-digit days (from 1 to 4) required for surface origin-destination ZIP Code pair. For transportation between each 3-digit each such pair, the applicable day ZIP Code origin-destination pair, plus within the range is based on the num- an additional day if the destination de- ber of days required for transportation livery address is served by an Auxiliary outside the contiguous 48 states. Service Facility. [77 FR 31197, May 25, 2012, as amended at 79 (5) For each remaining 3-digit ZIP FR 12393, Mar. 5, 2014] Code origin-destination pair for which either the origin or the destination is § 121.4 Package Services. outside the contiguous 48 states, the (a) End-to-End. (1) The service stand- service standard for Package Services ard for Sectional Center Facility (SCF) mail accepted at origin before the day- turnaround Package Services mail ac- zero Critical Entry Time is between 10 cepted at the origin SCF before the and 26 days. For each such 3-digit ZIP

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Code origin-destination pair, this rep- Entry Time at the proper DNDC in the resents the sum of 3 to 4 days, plus the contiguous 48 states for delivery to ad- number of days (ranging from 7 to 22) dresses in the states of Alaska or Ha- required for intermodal (highway, boat, waii, or the territories of Guam, Amer- air-taxi) transportation between each ican Samoa, Puerto Rico, or the U.S. 3-digit ZIP Code origin-destination Virgin Islands has a service standard of pair. either 11 or 12 days, depending on the 3- (6) The service standard for Inbound digit ZIP Code origin-destination pair. Surface Parcel Post® pieces (subject to For each such pair, the applicable day Universal Postal Union rates) is the within the range is based on the num- same as the service standard for do- ber of days required for transportation mestic Package Services mail from the outside the contiguous 48 states. 3-digit ZIP Code area in which the International Network Distribution [77 FR 31198, May 25, 2012] Center is located in the 3-digit ZIP APPENDIX A TO PART 121—TABLES DE- Code in which the delivery address is PICTING SERVICE STANDARD DAY located. RANGES (b) Destination Entry. (1) Package Services mail that qualifies for a Des- The following tables reflect the service tination Delivery Unit (DDU) rate, and standard day ranges resulting from the ap- that is accepted before the day-zero plication of the business rules applicable to Critical Entry Time at the proper the market-dominant mail products ref- DDU, has a 1-day (overnight) service erenced in §§ 121.1 through 121.4: standard. Table 1. Prior to January 5, 2015, end-to- (2) Package Services mail that quali- end service standard day ranges for mail originating and destinating within the con- fies for a Destination Sectional Center tiguous 48 states and the District of Colum- Facility (DSCF) rate, and that is ac- bia. cepted before the day-zero Critical Entry Time at the proper DSCF, has a CONTIGUOUS UNITED STATES 2-day service standard, except for mail dropped at the SCF in the territory of End-to-end Mail class range Puerto Rico and destined to the terri- (days) tory of the U.S. Virgin Islands, and mail destined to American Samoa. First-Class Mail ...... 1–3 Periodicals ...... 2–9 (3) Package Services mail that quali- Standard Mail ...... 3–10 fies for a Destination Sectional Center Package Services ...... 2–8 Facility (DSCF) discount, is accepted before the day-zero Critical Entry Table 2. On and after January 5, 2015, end- Time at the SCF, and is destined to ei- to-end service standard day ranges for mail ther American Samoa or the U.S. Vir- originating and destinating within the con- gin Islands, has a 3-day service stand- tiguous 48 states and the District of Colum- ard. bia. (4) Package Services mail that quali- CONTIGUOUS UNITED STATES fies for a Destination Network Dis- tribution Center (DNDC) rate, and is End-to-end accepted before the day-zero Critical Mail class range Entry Time at the proper DNDC or (days) Destination Auxiliary Service Facility, First-Class Mail ...... 1–3 and originates and destinates in the Periodicals ...... 3–9 contiguous 48 states, has a 3-day serv- Standard Mail ...... 3–10 Package Services ...... 2–8 ice standard. (5) Package Services mail that quali- Table 3. Prior to January 5, 2015, end-to- fies for a Destination Network Dis- end service standard day ranges for mail tribution Center (DNDC) rate, and that originating and/or destinating in non-contig- is accepted before the day-zero Critical uous states and territories.

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NON-CONTIGUOUS STATES AND TERRITORIES

End-to-end To/from states of Alaska and Hawaii, and the territories of Intra state/territory To/from contiguous 48 states Guam, Puerto Rico and the Mail class U.S. Virgin Islands Hawaii, Hawaii, Hawaii, Guam & Puerto Guam, & Puerto Guam, & Puerto Alaska American Rico & Alaska American Rico & Alaska American Rico & Samoa USVI Samoa USVI Samoa USVI

First-Class Mail...... 1–3 1–3 1–2 3–4 3–5 3–4 4–5 4–5 4–5 Periodicals ...... 2–4 2–4 2–3 13–19 12–22 11–16 21–25 21–26 23–26 Standard Mail...... 3–5 3–5 3–4 14–20 13–23 12–17 23–26 23–27 24–27 Package Services...... * 2–4 2–4 2–3 12–18 11–21 10–15 21–26 20–26 20–24 * Excluding bypass mail. Table 4. On and after January 5, 2015, end-to-end service standard day ranges for mail originating and/or destinating in non-contiguous states and territories.

NON-CONTIGUOUS STATES AND TERRITORIES

First-Class Mail...... 1–3 1–3 1–2 3–4 3–5 3–4 4–5 4–5 4–5 Periodicals ...... 3–4 3–4 3 13–19 12–22 11–16 21–25 21–26 23–26 Standard Mail...... 3–5 3–5 3–4 14–20 13–23 12–17 23–26 23–27 24–27 Package Services...... * 2–4 2–4 2–3 12–18 11–21 10–15 21–26 20–26 20–24 * Excluding bypass mail. Table 5. Destination-entry service standard day ranges for mail to the contiguous 48 states and the District of Columbia.

TABLE 5—DESTINATION ENTRY SERVICE STANDARD DAY RANGES FOR MAIL TO THE CONTIGUOUS 48 STATES AND THE DISTRICT OF COLUMBIA

CONTIGUOUS UNITED STATES

Mail class Destination entry (at appropriate facility) DDU SCF ADC NDC (Days) (Days) (Days) (Days)

Periodicals ...... 1 1 1–2 2–3 Standard Mail ...... 2 3–4 ...... 5 Package Services ...... 1 2 ...... 3

Table 6. Destination entry service standard day ranges for mail to non-contiguous states and territories.

TABLE 6—DESTINATION ENTRY SERVICE STANDARD DAY RANGES FOR MAIL TO NON-CONTIGUOUS STATES AND TERRITORIES.

Destination entry (at appropriate facility) SCF (Days) ADC (Days) NDC (Days) Mail class DDU Hawaii, Puerto Hawaii, Puerto Hawaii, Puerto (Days) Guam, & Guam, & Guam, & Alaska American Rico & Alaska American Rico & Alaska American Rico & Samoa USVI Samoa USVI Samoa USVI

Periodicals ...... 1 1–3 1 1–3 1–4 (AK) 1 (HI) 1–4 10–11 10 8–10 11 (JNU) 2 (GU) 11 (KTN)

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TABLE 6—DESTINATION ENTRY SERVICE STANDARD DAY RANGES FOR MAIL TO NON-CONTIGUOUS STATES AND TERRITORIES.—Continued

Destination entry (at appropriate facility) SCF (Days) ADC (Days) NDC (Days) Mail class DDU Hawaii, Hawaii, Hawaii, (Days) Guam, & Puerto Guam, & Puerto Guam, & Puerto Alaska American Rico & Alaska American Rico & Alaska American Rico & Samoa USVI Samoa USVI Samoa USVI

Standard Mail ...... 2 3–4 3–5 3–5 ...... 14 13 12 Package Services .. 1 2 2–3 2–3 ...... 12 11 11 AK = Alaska 3-digit ZIP Codes 995–997; JNU = Juneau AK 3-digit ZIP Code 998; KTN = Ketchikan AK 3-digit ZIP Code 999; HI = Hawaii 3-digit ZIP Codes 967 and 968; GU = Guam 3-digit ZIP Code 969.

[77 FR 31198, May 25, 2012, as amended at 79 FR 4080, Jan. 24, 2014; 79 FR 12393, Mar. 5, 2014; 79 FR 14401, Mar. 14, 2014; 79 FR 44701, Aug. 1, 2014]

PART 122—SERVICE STANDARDS made available to the sender no later FOR MARKET-DOMINANT SPE- than 24 hours after the time of the scan CIAL SERVICES PRODUCTS of the mailpiece by the Postal Auto- mated Redirection System. (b) For the market-dominant mail Sec. products identified above in part 121, 122.1 Ancillary special services. 122.2 Stand-alone special services. mailers may purchase insurance from the Postal Service TM to provide indem- AUTHORITY: 39 U.S.C. 101, 401, 403, 404, 1001, nity against loss or damage to the con- 3691. tents of a mailpiece. The service stand- SOURCE: 72 FR 72228, Dec. 19, 2007, unless ard for the administrative resolution of otherwise noted. domestic insurance claims is that a final agency decision must be trans- § 122.1 Ancillary special services. mitted to the claimant no later than 30 (a) For the market-dominant mail calendar days after the date on which products identified above in part 121, the Postal Service has received all in- mailers may purchase various ancil- formation from the claimant necessary lary special services products, which for analysis of the claim. are designed to provide electronic access to information regarding delivery- § 122.2 Stand-alone special services. related events or forwarding addresses (a) The service standard for P. O. for individual mailpieces. Box TM service is that mail be available (1) For the following special services, for pickup at the box each delivery day the service standard for the electronic no later than the daily ‘‘up-time’’ pub- provision of delivery-related informa- licly posted at the Post Office TM location is that it be made available to the tion that includes the box section. sender no later than 24 hours after the (b) The service standard for comple- time of the recorded delivery-related tion of Address List Services (change- scan performed by the Postal Service of-address information for election on mail for which the following special boards and registration commissions, services have been purchased: Domes- correction and ZIP Code placement of tic Certified Mail TM service, domestic mailing lists, and address sequencing) Delivery Confirmation TM service, do- is transmission of the corrected ad- mestic and inbound international Reg- dresses within 15 business days of re- istered Mail TM service, domestic Col- ceipt to the requester, except for the lect On Delivery, domestic electronic period from November 16 through Jan- Return Receipt, and domestic Signa- uary 1. ture Confirmation TM scans. (c) For the domestic market-domi- (2) For domestic electronic Address nant mail products identified above in Correction Service, the service stand- part 121, CONFIRM ® service allows ard for the electronic provision of ad- subscribing customers to obtain elec- dress change information is that it be tronic information regarding when and

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where mailpieces undergo barcode service is shipment of orders within the scans in mail processing operations. following timeframes, based from the The service standard for the electronic time of order receipt within SFS sys- provision of CONFIRM service scan in- tems, excluding designated postal holi- formation is that it be made available days. to the sender no later than 24 hours after the recorded time of the CON- STAMP FULFILLMENT SERVICES—SERVICE FIRM scan performed by the Postal STANDARDS FOR FULFILLMENT PROCESS Service. (d) The service standard for Postal Customer order Service standard 1 Money Order Inquiry service is trans- Internet Orders: Non-Philatelic/Non- ≤2 Business Days. mission of a response to the customer’s Custom. completed inquiry within 15 business Business Level Orders ...... ≤5 Business Days. days of receipt of the inquiry by the Philatelic/Custom and All Other Order ≤10 Business Days. Postal Service, excluding designated Sources. postal holidays. (e) The service standards for Stamp [72 FR 72228, Dec. 19, 2007, as amended at 76 Fulfillment Services order fulfillment FR 61053, Oct. 3, 2011]

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PART 211—APPLICATION OF in the FEDERAL REGISTER and the Code REGULATIONS of Federal Regulations. (b) Except as otherwise provided by Sec. law, the resolutions of the Governors 211.1 Disposition of former title 39, U.S.C. and the Board of Governors of the U.S. 211.2 Regulations of the Postal Service. Postal Service and the bylaws of the 211.3 Executive orders and other executive Board of Governors take precedence pronouncements; circulars, bulletins, and other issuances of the Office of Manage- over all regulations issued by other au- ment and Budget. thority. 211.4 Interim personnel regulations. (c) The adoption, by reference or oth- AUTHORITY: 39 U.S.C. 201, 202, 401(2), 402, erwise, of any rule of law or regulation 403, 404, 410, 1001, 1005, 1209; Pub. L. 91–375, in this or any other regulation of the Secs. 3–5, 84 Stat. 773–75. Postal Service shall not be interpreted

SOURCE: 38 FR 20402, July 31, 1973, unless as any expression on the issue of otherwise noted. whether such rule of law or regulation would apply to the Postal Service if it § 211.1 Disposition of former title 39, were not adopted as a regulation, nor U.S.C. shall it restrict the authority of the Except as otherwise continued in ef- Postal Service to amend or revoke the fect as postal regulations, all provi- rule so adopted at a subsequent time. sions of former title 39, U.S.C., which (d) All regulations of the Post Office were continued in effect as regulations Department in effect at the time the of the Postal Service by section 5(f) of U.S. Postal Service commenced oper- the Postal Reorganization Act, are re- ations, continue in effect, except as voked. This revocation does not apply subsequently modified or repealed by to postal regulations which embody or the Postal Service. Except as otherwise are derived from provisions of former continued in effect as postal regula- title 39. tions, all regulations of other agencies of the United States continued in effect § 211.2 Regulations of the Postal Serv- ice. as postal regulations by section 5(a) of the Postal Reorganization Act are re- (a) The regulations of the Postal pealed. Service consist of: (1) The resolutions of the Governors [38 FR 20402, July 31, 1973, as amended at 46 and the Board of Governors of the U.S. FR 34329, July 1, 1981; 69 FR 36022, June 28, Postal Service and the bylaws of the 2004; 69 FR 59545, Oct. 5, 2004; 70 FR 20293, Board of Governors; Apr. 19, 2005] (2) The Mailing Standards of the § 211.3 Executive orders and other ex- United States Postal Service, Domestic ecutive pronouncements; circulars, Mail Manual; the Postal Operations bulletins, and other issuances of the Manual; the Administrative Support Office of Management and Budget. Manual; the Employee and Labor Rela- tions Manual; the Financial Management (a) By virtue of the Postal Reorga- Manual; the International Mail Manual; nization Act, certain executive orders, and those portions of Chapter 2 of the and other executive pronouncements former Postal Service Manual and chap- and certain circulars, bulletins, and ter 7 of the former Postal Manual re- other issuances of the Office of Man- tained in force. agement and Budget or particular pro- (3) Headquarters Circulars, Manage- visions thereof, or requirements there- ment Instructions, Regional Instruc- in, apply to the Postal Service and cer- tions, handbooks, delegations of au- tain others do not apply. thority, and other regulatory issuances (b) It is the policy of the Postal Serv- and directives of the Postal Service or ice to continue to comply with the former Post Office Department. issuances of the kind mentioned in Any of the foregoing may be published paragraph (a) of this section with

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which it has previously complied, un- Postal Service. Any regulation or law less a management decision by an ap- the applicability of which is continued propriate department head is made to by paragraphs (a) through (c) of this terminate compliance, in whole or in section which requires any action by part, following advice from the General any agency other than the Postal Serv- Counsel that the issuance is not bind- ice or Post Office Department shall be ing, in whole or in part, on the Postal deemed to require such action by the Service. This policy is not enforceable Postal Service, unless by agreement by any party outside the Postal Serv- with the Postal Service the other agen- ice. No party outside the Postal Serv- cy involved consents to the continu- ice is authorized to use the mere non- ation of its action. compliance with this policy against the (d) Effect of Collective Bargaining on Postal Service in any way. Certain Regulations. All rules and regulations continued or established by § 211.4 Interim personnel regulations. paragraphs (a) through (c) of this sec- (a) Continuation of Personnel Regula- tion which establish fringe benefits as tions of the Post Office Department. All defined in title 39, U.S.C. 1005(f) of em- regulations of the former Post Office ployees for whom there is a collective Department dealing with officers and bargaining representative continue to employees, in effect at the time the apply until modified by a collective U.S. Postal Service commenced oper- bargaining agreement concluded pursu- ations, continue in effect according to ant to the Postal Reorganization Act. their terms until modified or repealed Those rules and regulations affecting by the Postal Service or pursuant to a other terms and conditions of employ- collective bargaining agreement under ment encompassed by section 8(d) of the Postal Reorganization Act. the National Labor Relations Act, as (b) Continuation of Personnel Provi- amended, shall continue to apply to sions of Former title 39, U.S.C. Except as such employees until such collective they may be inconsistent with other bargaining agreement has been con- regulations adopted by the Postal cluded, and, unless specifically contin- Service or with a collective bargaining ued by such agreement, shall apply agreement under the Postal Reorga- thereafter until modified or repealed nization Act, all provisions of former by the Postal Service pursuant to its title 39, U.S.C., dealing with and appli- authority under title 39, U.S.C. 1001(e) cable to postal officers and employees and other pertinent provisions of the immediately prior to the commence- Postal Reorganization Act. In the ment of operations of the Postal Serv- event a condition occurs which shall ice continue in effect as regulations of excuse the Postal Service from con- the Postal Service. tinuing negotiations prior to the par- (c) Continuation of Other Laws and ties thereto concluding an agreement Regulations as Postal Regulations. Ex- in accordance with the Postal Reorga- cept as they may be inconsistent with nization Act, the Postal Service re- the provisions of the Postal Reorga- serves the right in accordance with the nization Act, with other regulations reorganization measures mandated by adopted by the Postal Service, or with the Congress and consistent with the a collective bargaining agreement provisions of the Act, and any collec- under the Postal Reorganization Act, tive bargaining agreements in exist- all regulations of Federal agencies ence at that time, insofar as they do other than the Postal Service or Post not unduly impede such reorganization Office Department and all laws other measures, to continue, discontinue, or than provisions of revised title 39, revise all compensation, benefits, and U.S.C., or provisions of other laws terms and conditions of employment of made applicable to the Postal Service such employees of the Postal Service. by revised title 39, U.S.C., dealing with officers and employees applicable to PART 221—GENERAL postal officers and employees imme- ORGANIZATION diately prior to the commencement of operations of the Postal Service, con- Sec. tinue in effect as regulations of the 221.1 The United States Postal Service.

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221.2 Board of Governors. (1) Provide an independent and objec- 221.3 Office of Inspector General. tive unit to conduct and supervise au- 221.4 Corporate officers. dits and investigations relating to pro- 221.5 Headquarters organization. grams and operations of the Postal 221.6 Field organization. Service. 221.7 Postal Service emblem. (2) Provide leadership and coordina- AUTHORITY: 39 U.S.C. 201, 202, 203, 204, 207, tion and recommend policies for activi- 401(2), 402, 403, 404, 409, 1001; Inspector Gen- ties designed to: eral Act of 1978 (Pub. L. 95–452), 5 U.S.C. App. (i) Promote economy, efficiency, and 3. effectiveness in the administration of SOURCE: 69 FR 53000, Aug. 31, 2004, unless postal programs and operations. otherwise noted. (ii) Prevent and detect fraud and abuse in postal programs and oper- § 221.1 The United States Postal Serv- ice. ations. (3) Provide a means of keeping the The United States Postal Service was governors and Congress fully and cur- established as an independent estab- rently informed about: lishment within the executive branch (i) Problems and deficiencies relating of the government of the United States to the administration of postal pro- under the Postal Reorganization Act of grams and operations. August 12, 1970 (Pub. L. 91–375, 84 Stat. (ii) The necessity for corrective ac- 719). tion. (iii) The progress of corrective ac- § 221.2 Board of Governors. tion. (a) Composition. The Board of Gov- (4) Provide oversight of all activities ernors consists of 11 members. Nine of the Postal Inspection Service. governors are appointed by the Presi- (c) Inspector General—(1) Appointment. dent of the United States, by and with The inspector general is appointed for the advice and consent of the Senate. a 7-year term by the nine governors. Not more than five governors may be (2) Responsibilities. The inspector gen- adherents of the same political party. eral is responsible for the operations of The governors are chosen to represent the OIG: ensuring independent and ob- the public interest generally, and they jective audits and investigations of may not be representatives of specific postal operations and programs; over- interests using the Postal Service. The seeing the Postal Inspection Service; governors may be removed only for and apprising the governors and Con- cause. The postmaster general and the gress of significant observations. The deputy postmaster general are also inspector general has no direct respon- voting members of the Board of Gov- sibility for designing, installing, and/or ernors. operating postal operations or pro- (b) Responsibilities. The Board of Gov- grams. ernors directs the exercise of the pow- (3) Extent of powers. In addition to the ers of the Postal Service, reviews the authority otherwise provided by the In- practices and policies of the Postal spector General Act of 1978, as amend- Service, and directs and controls its ex- ed, the inspector general is authorized penditures. to: (i) Have unrestricted access to all § 221.3 Office of Inspector General. Postal Service operations, programs, (a) Establishment. The Office of In- records, and documents, whether in spector General (OIG) was established custody of the Postal Service or avail- as an independent law enforcement and able by law, contract, or regulation. oversight agency for the United States (ii) Have direct and prompt access to Postal Service under the Inspector the governors when necessary for any General Act of 1978 (5 U.S.C. App. 3), as purpose pertaining to the performance amended in 1988 (Pub. L. 100–504, 102 of the functions and responsibilities of Stat. 2515) and 1996 (Pub. L. 104–208, 110 the OIG. Stat. 3009). (iii) Administer oaths when nec- (b) Responsibilities. The OIG was es- essary in performance of the functions tablished to: assigned to the OIG.

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(iv) Require by subpoena the produc- nate may also determine appeals with- tion of all information, documents, re- in the authority delegated. ports, answers, records, accounts, pa- (3) Extent of powers. The postmaster pers, and other data and documentary general, as directed by the Board of evidence necessary in the performance Governors, exercises the powers of the of the functions of the OIG. Postal Service to the extent that such (v) Select, appoint, and employ such exercise does not conflict with power officers and employees as may be nec- reserved to the Board by law. The post- essary for carrying out the functions, master general is authorized to direct powers, and duties of the OIG. any officer, employee, or agent of the (vi) Obtain the temporary or inter- Postal Service to exercise such of the mittent services of experts or consult- postmaster general’s powers as the ants in accordance with applicable laws postmaster general deems appropriate. and regulations. (b) Deputy Postmaster General. The deputy postmaster general is appointed § 221.4 Corporate officers. and can be removed by the postmaster The Board of Governors determines general and the governors in office. the number of corporate officers and The deputy postmaster general reports appoints the postmaster general. The directly to the postmaster general. governors and the postmaster general (c) Chief Operating Officer and Execu- appoint the deputy postmaster general. tive Vice President. The chief operating The postmaster general appoints the officer and executive vice president is remaining corporate officers. The cor- appointed by the postmaster general porate officers of the Postal Service and directs all processing, distribution, are the following: and customer service functions. (a) The postmaster general and chief (d) Officers in charge of Headquarters executive officer. organizational units. The officers in (b) The deputy postmaster general. charge of Headquarters organizational (c) The chief operating officer and ex- units are appointed by the postmaster ecutive vice president. general. They report directly to the (d) The chief financial officer and ex- postmaster general, the deputy post- ecutive vice president. master general, an executive vice president, a senior vice president, or (e) The senior vice presidents. another officer, as the postmaster gen- (f) The general counsel and senior eral may direct. vice president. (e) Responsibilities. The corporate offi- (g) The vice presidents. cers head the organizational units into (h) The chief inspector. which Headquarters and the field are (i) The consumer advocate and vice divided. They are responsible for the president. following: (j) The judicial officer. (1) Program planning, direction, and (k) Such other officers as the Board review. may designate from time to time. (2) Establishment of policies, procedures, and standards. § 221.5 Headquarters organization. (3) Operational determinations not (a) Postmaster General—(1) Appoint- delegated to district officials. ment. The postmaster general (PMG), the chief executive officer of the Postal § 221.6 Field organization. Service, is appointed by and can be re- (a) General. There are 8 areas, each moved by a majority of the governors with a vice president. in office. (b) Area locations. (2) Responsibilities. The postmaster general is responsible for the overall Area name Location operation of the Postal Service. The Eastern ...... Pittsburgh PA. postmaster general determines appeals Great Lakes ...... Chicago IL. from the actions of staff and corporate New York Metro ...... New York NY. officers, except in cases where he or she Northeast ...... Windsor CT. Pacific ...... San Francisco CA. has delegated authority to make a de- Southeast ...... Memphis TN. cision to a subordinate; such subordi- Southwest ...... Dallas TX.

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Area name Location a trademark and service mark by the U.S. Patent Office. Except for the em- Western ...... Denver CO. blem on official stationery, the em- (c) Area functions. Functional units blem must bear one of the following and reporting units are as follows: notations: ‘‘Reg. U.S. Pat. Off.’’, ‘‘Reg- (1) Functional units. Each area is di- istered in U.S. Patent Office’’, or the vided into functional units responsible letter R enclosed within a circle. for finance, human resources, marketing, and operations support. PART 222—DELEGATIONS OF (2) Reporting units. Areas are respon- AUTHORITY sible for: (i) Customer service districts (CSDs). Sec. (ii) Post offices (POs). 222.1 Authority to administer postal affairs. (iii) Vehicle maintenance facilities 222.2 Authority to administer oaths or func- (VMFs). tion as notaries public. (iv) Processing and distribution cen- 222.3 Other delegation. ters (P&DCs). AUTHORITY: 39 U.S.C. 201, 202, 203, 204, 207, (v) Processing and distribution facili- 401(2), 402, 403, 404, 409, 1001, 1011; Inspector ties (P&DFs). General Act of 1978 (Pub. L. 95–452), 5 U.S.C. (vi) Air mail centers (AMCs). App. 3. (vii) Air mail facilities (AMFs). SOURCE: 69 FR 53000, Aug. 31, 2004, unless (viii) Bulk mail centers (BMCs). otherwise noted. (ix) Bulk mail facilities (BMFs). (x) Remote encoding centers (RECs). § 222.1 Authority to administer postal (d) Customer Service District Offices. affairs. Functional units and reporting rela- (a) The Postmaster General. The post- tionships are as follows: master general has been authorized by (1) Functional units. The 80 district of- the Board of Governors to exercise the fices coordinate the day-to-day man- powers of the Postal Service to the full agement of post offices and customer extent that such exercise is lawful. The service activities other than processing postmaster general is empowered to and distribution within a geographical authorize any employee or agent of the area. EAS–26 and above postmasters re- Service to exercise any function vested port to their district manager. Each in the Postal Service, in the post- district office is organized into func- master general, or in any other Postal tional units responsible for post office Service employee. operations, operations programs sup- (b) Corporate officers. Corporate offi- port, customer service support, fi- cers are authorized to exercise the pow- nance, human resources, information ers and functions of the Postal Service technology, administrative support, under the Postal Reorganization Act and marketing. with respect to matters within their (2) Reporting relationships. Inde- areas of responsibility, except as lim- pendent delivery distribution centers ited by law or by the specific terms of and post offices level EAS–24 and below their assignment. report to the functional unit respon- (c) General counsel. The general coun- sible for post office operations. sel is authorized to settle federal tort (e) Support—(1) General. Headquarters claims under section 2672 of title 28, field units and service centers provide United States Code, up to $100,000. support for area offices. (2) Headquarters field units. As as- § 222.2 Authority to administer oaths signed, Headquarters field units are re- or function as notaries public. sponsible for legal services, corporate (a) Authority to approve personnel relations, human resources, facility actions and administer oaths of office services, finance, information tech- for employment. The postmaster gen- nology, and supply management. eral, corporate officers, and their delegatees are authorized to effect ap- § 221.7 Postal Service emblem. pointments, administer oaths of office The Postal Service emblem, which is for employment, and take other per- identical with the seal, is registered as sonnel actions.

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(b) Authority to administer oaths tain such specific limiting conditions other than for employment. The fol- as may be appropriate. lowing are authorized to administer (e) Further delegation. Authority may oaths concerning matters other than be further delegated unless prohibited employment: by law, a regulation that expressly pro- (1) Postal inspectors, with regard to hibits further delegation, or terms of any matter coming before them in the the delegation. performance of their official duties; (2) Any member of a board who is as- PART 223—RELATIONSHIPS AND signed to conduct hearings or inves- COMMUNICATION CHANNELS tigations in which sworn testimony, affidavits, or depositions are required, Sec. and each officer or employee assigned 223.1 Headquarters and areas. to conduct such hearings or investiga- 223.2 Channels of communication, head- tions; quarters with area offices. (3) Postmasters, where required in the performance of their official duties. AUTHORITY: 39 U.S.C. 201, 202, 203, 204, 207, 401(2), 402, 403, 404. (c) Authority to function as notaries public. (1) Postmasters in Alaska have SOURCE: 69 FR 53000, Aug. 31, 2004, unless the authority to administer oaths and otherwise noted. affirmations, take acknowledgments and make and execute certificates § 223.1 Headquarters and areas. thereof, and perform all other func- Headquarters provides policy guid- tions of a notary public within Alaska ance, procedures, and interpretation to when a certification is necessary to area officials. meet any Act of Congress or the Legis- lature of Alaska. No fees may be § 223.2 Channels of communication, charged for notarial services. headquarters with area offices. (2) An officer or employee who is a (a) General. Headquarters organiza- notary public shall not charge or re- tional units formulate the directives to ceive compensation for notarial serv- provide guidance to area officials. ices for another officer or employee re- (b) Policies. Policies are issued over garding Government business; nor for the signatures of the vice presidents of notarial services for any person during the functional organizations (unless the hours of the notary’s services to the postmaster general or deputy post- the Government, including the lunch master general issues these directives period. personally). Whether published on paper or online, such policies must be § 222.3 Other delegation. coordinated with other appropriate or- (a) Documentation. All delegations of ganizations before issuance, and re- authority must be officially docu- viewed, published, and managed by mented. Public Affairs and Communications. If (b) Position title. Delegations of au- within the authority of the issuer, thority must ordinarily be made by po- these policies have the same effect as sition title rather than by name of the though sent by the postmaster general individual involved. An officer or exec- or deputy postmaster general. utive acting for a principal has the (c) Procedures. Regulations, instruc- principal’s full authority. tions, and implementation guidelines (c) Level. When authority is delegated are issued over the signatures of vice to an officer, the officers above that of- presidents of functional organizations ficer shall have the same authority. or their accountable functional unit Delegated authority does not extend to managers and used to implement pro- aides unless an aide is acting for the grams and business activities. Whether supervisor (see paragraph (b) of this published on paper or online, such pro- section) or is specifically authorized by cedures must be coordinated with other the superior to exercise such authority. appropriate organizations before (d) Agreement with law. A delegation issuance and reviewed, published, and must agree with the law and regula- managed by Public Affairs and Com- tions under which it is made and con- munications.

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Inspection Service Requirements ment of Justice attorney represent the employee in any appearance? 230.22 May another employee be substituted PART 230—OFFICE OF INSPECTOR for the employee requested to appear?. GENERAL 230.23 May an Office of Inspector General employee testify as an expert or opinion Subpart A—General Policy and Authority witness? 230.24 How is a demand for employee docu- Sec. ments or testimony made to the Office of 230.1 Establishment and authority. Inspector General? 230.2 Access to information and other re- 230.25 Who pays the costs incurred when the sponsibilities. Office of Inspector General responds to a 230.3 Cooperation with the Office of Inspec- demand for documents or testimony? tor General. 230.26 Do these rules affect the service of 230.4 Arrest and investigative powers of process requirements of the Federal criminal investigators. Rules of Civil Procedure (28 U.S.C. Ap- 230.5 Release of information. pendix)? 230.6 Contractor requirements. 230.27 Do these rules create any right or benefit enforceable by a party against Subpart B—Rules Governing Compliance the Postal Service? with Subpoenas, Summonses, and Subpart C—Rules of Procedure Relating to Court Orders by Postal Employees the Disposition of Stolen Mail Matter Within the Office of Inspector General and Property Acquired by the Office Where Neither the Postal Service, the Of Inspector General for Use as Evi- United States, Nor Any Other Federal dence Agency Is a Party 230.30 Scope. 230.10 What do these rules govern? 230.31 Definitions. 230.11 What special definitions apply to 230.32 Disposition of property of apparent these rules? owners where property is valued over 230.12 Can Office of Inspector General em- $200. ployees testify or produce documents 230.33 Disposition of property of apparent that would assist me in my civil pro- owners where property is valued at $200 ceeding? or less. 230.13 Why are restrictions on Office of In- 230.34 Disposition of property of unknown spector General employees in civil pro- owners where property is valued over ceedings necessary? $200. 230.14 Who owns the written or recorded 230.35 Disposition of property of unknown notes, memoranda, reports, and tran- owners where property is valued at $200 scriptions made pursuant to an official or less. investigation, audit, or review conducted 230.36 Contraband and property subject to by an employee of the Office of Inspector court order. General? 230.37 Determination of type of property. 230.15 What must an Office of Inspector 230.38 Disposition of abandoned property; General employee do if served with a de- additional period for filing claims. mand requiring the production of docu- 230.39 Submission of claims. ments or an appearance in court? 230.40 Determination of claims. 230.16 Is there a prohibition on presenting 230.41 Reconsideration of claims. Office of Inspector General reports or 230.42 Disposition of property declared records during an employee’s testimony? abandoned where title vests in the gov- 230.17 If an attempt is made to compel pro- ernment. duction of reports and records during the employee’s testimony, what is an Office AUTHORITY: 5 U.S.C. App.3; 39 U.S.C. 401(2) of Inspector General employee directed and 1001. to do? SOURCE: 67 FR 16025, Apr. 4, 2002, unless 230.18 If authorization to testify or produce otherwise noted. documents is not obtained by the employee, what is the employee directed to do? Subpart A—General Policy and 230.19 What criteria will the authorizing of- Authority ficial use to determine whether to authorize testimony or production of docu- § 230.1 Establishment and authority. ments? 230.20 What records will not be released? (a) There is established, pursuant to 230.21 May the General Counsel to the In- the Inspector General Act of 1978, as spector General and/or a U.S. Depart- amended (5 U.S.C. App.3), and 39 U.S.C. 43

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410, an independent Office of Inspector arrangements with public agencies and General. with private entities, and to make such (b) The Inspector General reports di- payments as may be necessary to carry rectly to the nine presidentially ap- out the duties and responsibilities of pointed Governors and shall not be su- the Office of Inspector General. pervised by, nor report to, the Post- (i) The Inspector General may hire master General and/or any designee ap- and retain the services of expert con- pointed by the Postmaster General. sultants and other personnel as nec- (c) The Office of Inspector General essary to fulfill the duties and respon- includes an Inspector General, an As- sibilities of the Office. sistant Inspector General for Audit, (j) Except as required by law, the and an Assistant Inspector General for Investigations. The Office of Inspector Governors may not transfer to the In- General maintains its own legal coun- spector General responsibility for per- sel independent of the Postal Service forming any of the program activities Law Department for matters that are of the Postal Service. within the jurisdiction of the Office. [67 FR 16025, Apr. 4, 2002, as amended at 72 (d) The Office of Inspector General is FR 39011, July 17, 2007] responsible for detecting and preventing fraud, waste, and abuse in the § 230.2 Access to information and programs and operations of the Postal other responsibilities. Service, including, investigating all al- (a) The Inspector General has author- legations of violations of postal laws or ity to have access to all postal records, misconduct by postal employees, in- reports, audits, reviews, documents, cluding mail theft, and for reviewing papers, information, and other mate- existing and proposed legislation and regulations relating to the programs rial relating to any matter related to and operations of the Postal Service. the responsibilities of the Inspector (e) The Inspector General has over- General; sight responsibilities for all activities (b) The Inspector General shall be the of the Postal Inspection Service. The Investigating Official for purposes of Chief Postal Inspector must promptly the Program Fraud Civil Remedies Act. report to the Inspector General significant activities and other information § 230.3 Cooperation with the Office of related to the Inspection Service as re- Inspector General. quired by law. (a) All Postal Service employees (f) The Inspector General has sole re- shall cooperate with all audits, responsibility for directing the Office of views, and investigations conducted by Inspector General, including the au- the Office of Inspector General. Delib- thority to select, appoint, and employ erately submitting information known such officers and employees that the to be false or misleading to the Office Inspector General deems necessary and of Inspector General or failing to co- appropriate to fulfill the mission of the operate with all audits, reviews, and Office. In addition, the Inspector Gen- investigations conducted by the Office eral may delegate to such officers and of Inspector General may be grounds employees of the Inspector General for disciplinary or other legal action. such powers, duties, and responsibilities, as the Inspector General deems (b) Any employee who has authority necessary and appropriate for the prop- to take, direct another to take, rec- er functioning of the Office. ommend or approve any personnel ac- (g) All employees in the Office of In- tion shall not retaliate against any em- spector General shall take and sub- ployee as a reprisal for cooperating and scribe to the oath of office required of assisting with any Office of Inspector all Postal Service employees under 39 General audit, review, or investigation U.S.C. 1011, and the Inspector General, (including reporting facts or informa- or designee, is authorized to administer tion to the Office of Inspector General such oath and affirmation. that leads to any audit, review, or in- (h) The Inspector General has the au- vestigation). thority to enter into contracts or other

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§ 230.4 Arrest and investigative powers (c) Requests for records and informa- of criminal investigators. tion under the Freedom of Information (a) Under the authority of 18 U.S.C. Act or Privacy Act should be sub- 3061, criminal investigators employed mitted in writing to the Office of In- by the Office of Inspector General are spector General, Freedom of Informa- authorized to perform the following tion/Privacy Act Officer, located at functions in connection with their offi- 1735 N. Lynn Street, Arlington, Vir- cial duties: ginia, 22209–2020. (1) Serve warrants and subpoenas (d) The Office of Inspector General issued under the authority of the shall comply with and adhere to the United States; procedures governing the release of in- (2) Make arrests without warrant for formation maintained by the U.S. offenses against the United States Postal Service as set forth in Part 265 committed in their presence; and related provisions of these regula- (3) Make arrests without warrant for tions to the extent such procedures do felonies cognizable under the laws of not conflict with any provision in this the United States if they have reason- part. able grounds to believe that the person (e) Appeals from the denial of any re- to be arrested has committed or is quest for information should be di- committing such a felony; rected to the General Counsel for the Office of Inspector General, who is re- (4) Carry firearms; and sponsible for deciding any timely ap- (5) Make seizures of property as pro- peals authorized under this section. vided by law. (f) Postal Service records in the cus- (b) Administrative subpoenas may be tody of the Office of Inspector General served by delivering a copy to a person that contain proprietary information or by mailing a copy to the person’s will not be released by the Inspector last known address. For the purposes of General without consultation with the this provision, delivery of a copy inappropriate Postal Service official re- cludes handing it to the party or leav- sponsible for the record. ing it at the party’s office or residence with a person of suitable age and dis- § 230.6 Contractor requirements. cretion employed or residing therein. Service by mail is complete upon mail- (a) The Office of Inspector General ing. shall be the exclusive judge of its contractors’ qualifications. [67 FR 16025, Apr. 4, 2002, as amended at 71 (b) The Office of Inspector General FR 12285, Mar. 10, 2006] shall award contracts to and make purchases from only responsible contrac- § 230.5 Release of information. tors. In order to award a contract, a (a) The Office of Inspector General is contracting officer must make an af- responsible for maintaining and storing firmative determination of responsi- its own records and for assuring com- bility. pliance with applicable records man- (c) A responsible prospective con- agement, retention, and disclosure re- tractor is one who: quirements. (1) Has the financial and logistical re- (b) The Inspector General or a des- sources to perform the contract; ignee serves as the official custodian of (2) Has the necessary organization, the records and documents of the Office experience, and technical ability to of Inspector General and is responsible perform the contract; for administering the rules and regula- (3) Is able to comply with the deliv- tions relating to public availability of ery and performance schedules estab- Postal Service Office of Inspector Gen- lished by the Office of Inspector Gen- eral records insofar as the information eral; is subject to the provisions of the Free- (4) Has a satisfactory performance dom of Information Act, contained in record (although a lack of relevant per- Section 552 of Title 5 of the U.S. Code formance history shall not disqualify a and 39 U.S.C. 410 (c), and/or the Privacy prospective contractor from award); Act, Section 552a of Title 5 of the U.S. (5) Has a satisfactory record of integ- Code. rity and business ethics; and,

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(6) Is otherwise qualified and eligible (c) These rules should be read to- to receive an award under applicable gether with the Freedom of Informa- federal laws and regulations. tion Act (FOIA), which provides additional information about access to [77 FR 6676, Feb. 9, 2012] records.

Subpart B—Rules Governing Com- § 230.11 What special definitions apply pliance With Subpoenas, to these rules? Summonses, and Court Or- The following definitions apply to ders by Postal Employees Subpart B: Within the Office of Inspector (a) Authorizing official means the In- General Where Neither the spector General or an official des- Postal Service, the United ignated by the Inspector General to authorize release of documents or permis- States, Nor Any Other Federal sion to testify. Agency Is a Party (b) Case or matter means any civil proceeding before a court of law, ad- SOURCE: 68 FR 57372, Oct. 3, 2003, unless ministrative board, hearing officer, or otherwise noted. other body conducting a judicial or administrative proceeding in which the § 230.10 What do these rules govern? United States, the Postal Service, or (a) Subpart B governs those situa- another federal agency is not a named tions where an employee of the Office party. of Inspector General has been sum- (c) Demand includes any request, moned, subpoenaed, or given a court order, or subpoena for testimony or the order in connection with any federal, production of documents. state, local court, administrative, or (d) Document means all records, pa- legislative proceeding. pers, or official files, including, but not (b) The rules in subpart B do not limited to, official letters, telegrams, apply to: memoranda, reports, studies, calendar (1) Proceedings where the United and diary entries, graphs, notes, States, the Postal Service, or any charts, tabulations, data analyses, sta- other federal agency is named as a tistical or information accumulations, party; records of meetings and conversations, (2) Congressional requests or sub- film impressions, magnetic tapes, com- poenas for testimony or documents; puter discs, and sound or mechanical (3) Employees serving as expert wit- reproductions. nesses in connection with professional (e) Employee or Office of Inspector and consultative services under Title 5, General employee, for the purpose of Code of Federal Regulations, Part 7001, this subpart only, means a Postal Serv- provided they state for the record that ice employee currently or formerly as- their testimony reflects their personal signed to the Postal Service Office of opinions and should not be viewed as Inspector General, student interns, the official position of the Postal Serv- contractors, and employees of contrac- ice; tors who have access to Office of In- (4) Employees making appearances in spector General information and their private capacities in proceedings records. that do not relate to their Postal Serv- (f) General Counsel to the Inspector ice employment, such as traffic acci- General means the General Counsel of dents or domestic relations matters; the Office of Inspector General, or a and do not involve professional or con- person authorized by the Inspector sultative services; General to give legal advice to Office of (5) Situations where the Inspector Inspector General employees. General General or an official designated by the Counsel to the Inspector General does Inspector General determines that the not mean the General Counsel of the best interests of the public or the Of- Postal Service. fice of Inspector General would be (g) Nonpublic includes any material served by an exemption from the regu- or information not subject to manda- lations. tory public disclosure under § 265.6(b) or

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which must be kept confidential under § 230.14 Who owns the written or re- the Inspector General Act, 5 U.S.C. corded notes, memoranda, reports, App. 3. and transcriptions made pursuant (h) Office of Inspector General means to an official investigation, audit, or review conducted by an employee the organizational unit within the of the Office of Inspector General? Postal Service as outlined in part 221 of this chapter. Notes, memoranda, reports, and tran- (i) Office of Inspector General Man- scriptions, whether written or recorded ual is the document containing the and made pursuant to an official inves- standard operating procedures for tigation, audit, or review conducted by an employee of the Office of Inspector criminal investigators, evaluators, and General, are the property of the Office other employees of the Office of Inspec- of Inspector General. tor General. (j) Reports include all written re- § 230.15 What must an Office of Inspec- ports, letters, recordings, or other tor General employee do if served memoralizations made in conjunction with a demand requiring the pro- with the duties of an Office of Inspec- duction of documents or an appear- tor General employee. ance in court? (k) Testify or testimony includes If an Office of Inspector General em- both in-person oral statements before ployee is served with a demand requir- any body conducting a judicial or ad- ing the production of documents or an ministrative proceeding and state- appearance in court, the employee ments made in depositions, answers to must promptly inform the authorizing interrogatories, declarations, affida- official of the nature of the documents vits, or other similar documents. or testimony sought and all relevant facts and circumstances. Office of In- § 230.12 Can Office of Inspector Gen- spector General employees are directed eral employees testify or produce to appear as the subpoena or summons documents that would assist me in may require, but may not testify or my civil proceeding? produce documents unless authorized. No current or former employee within the Office of Inspector General may § 230.16 Is there a prohibition on presenting Office of Inspector General testify or produce documents con- reports or records during an em- cerning information acquired in the ployee’s testimony? course of employment or as a result of Yes, Office of Inspector General re- his or her relationship with the Postal ports or records will not be presented Service in any proceeding to which this during an employee’s testimony, unless subpart applies (see § 230.10), unless au- authorized by an authorizing official. thorized to do so by an authorizing official. § 230.17 If an attempt is made to compel production of reports and § 230.13 Why are restrictions on Office records during the employee’s testi- of Inspector General employees in mony, what is an Office of Inspector civil proceedings necessary? General employee directed to do? The restrictions are intended to re- If an attempt is made to compel produce the risk of inappropriate disclo- duction of reports and records during sures that might affect the operations the employee’s testimony, the em- of the Office of Inspector General; pre- ployee is directed to decline to produce vent the expenditure of Office of In- the item or information and to state spector General or Postal Service re- that the material cannot be disclosed sources for private purposes; and en- or produced without the approval of sure that employee time is serving the the authorizing official. All such re- best interests of the public. quests, and any other requests for documents in judicial or administrative proceedings in which the United States is not a party, shall be deemed to be a request for records under the Freedom

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of Information Act and shall be han- lows the release of documents or testi- dled pursuant to 39 CFR 230.5. mony to be given by an employee, arrangements shall be made for the tak- § 230.18 If authorization to testify or ing of testimony or receipt of docu- produce documents is not obtained ments by the method least disruptive by the employee, what is the employee directed to do? to the employee’s official duties. Testi- mony may, for example, be provided by Absent written authorization from affidavits, answers to interrogatories, the authorizing official, the employee written depositions, or depositions must respectfully decline to produce transcribed, recorded, or preserved by the requested documents, testify, or any other means allowable by law. otherwise disclose the requested infor- (c) Upon issuance of an unfavorable mation. If the authorization is denied final determination by the authorizing or not received by the return date, the official, the party or the party’s coun- employee, together with counsel, where sel seeking testimony or documents appropriate, shall appear at the stated may consult or negotiate with the au- time and place, produce a copy of this thorizing official to refine and limit section, and respectfully decline to tes- the demand. tify or produce any document on the (d) The Office of Inspector General basis of the regulations in this section. will offer all possible assistance to the § 230.19 What criteria will the author- courts, but the question of disclosing izing official use to determine information for which an exemption whether to authorize testimony or may be claimed is a matter of discre- production of documents? tion that rests with the authorizing of- (a) The authorizing official will de- ficial. If in the opinion of the author- termine whether testimony or the pro- izing official the documents should not duction of documents will be author- be released or testimony should not be ized according to the following cri- furnished, that determination will be teria: final. (1) Statutory restrictions, as well as any legal objection, exemption, or § 230.20 What records will not be released? privilege that may apply; (2) Relevant legal standards for dis- Generally, any record demanded by a closure of nonpublic information and subpoena duces tecum or appropriate documents; court order can be released by a prop- (3) Office of Inspector General rules erly authorized Office of Inspector Gen- and regulations; eral employee, except for the following: (4) The public interest; (a) Records required to remain con- (5) Minimizing or preventing expendi- fidential by the Freedom of Informa- tures of Office of Inspector General and tion Act, the Privacy Act, and parts 230 Postal Service time and resources sole- and 262 of this chapter, ly for private purposes. (b) Records containing information (6) Minimizing the appearance of im- relating to an employee’s security or properly favoring one litigant over an- loyalty; other; (c) Original records; (7) Minimizing the possibility that (d) Office of Inspector General crimi- the public will misconstrue variances nal investigative reports, unless there between personal opinions of Office of is specific authorization by an author- Inspector General employees and agen- izing official, after consulting with cy policy; and General Counsel to the Inspector Gen- (8) Preserving the integrity of the ad- eral; and ministrative process. (e) The Office of Inspector General (b) Permission to testify or to release Manual and other operating instruc- documents in all cases will be limited tions issued to Office of Inspector Gen- to matters outlined in the affidavit or eral employees, unless there is specific declaration described in section 230.24 authorization by an authorizing offi- of this part or to such matters as cial, after consultation with the Gen- deemed appropriate by the authorizing eral Counsel to the Inspector General. official. If the authorizing official al- If the requested information relates to

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confidential investigative techniques, § 230.24 How is a demand for employee confidential sources of information, or documents or testimony made to information that must be kept con- the Office of Inspector General? fidential under the Inspector General (a) All demands for the production of Act, 5 U.S.C. app. 3, because release of nonpublic documents or testimony of the information would adversely affect Office of Inspector General employees the duties and obligations or law en- concerning matters relating to their forcement mission of the Office of In- official duties and subject to the condi- spector General, the subpoenaed offi- tions set forth in § 230.10(b) shall be cial, through the Inspector General, or made in writing and conform to the re- an authorizing official, may request an quirements outlined in paragraph (b) of in camera, ex parte conference to de- this section. termine the necessity for the release of (b) Before or simultaneously with the information. service of a demand, the requesting party shall serve on the General Coun- § 230.21 May the General Counsel to the Inspector General and/or a U.S. sel to the Inspector General at the Of- Department of Justice attorney rep- fice of Inspector General, 1735 North resent the employee in any appear- Lynn Street, Arlington, VA 22209–2020, ance? a summons or subpoena issued in ac- At the option of the Attorney Gen- cordance with the appropriate rules of eral, or an authorizing official, an Of- civil procedure along with an affidavit fice of Inspector General legal counsel or sworn declaration containing the may represent and assist the employee. following information: The authorizing official designated by (1) The title of the case and the the Inspector General may also request forum where it will be heard; assistance from the U.S. Department of (2) The party’s interest in the case; Justice in representing and assisting (3) The reasons for the demand; the employee in any appearance. (4) A showing that the requested information is available, by law, to a § 230.22 May another employee be sub- party outside the Postal Service; stituted for the employee requested (5) If testimony is sought, a detailed to appear? summary of the anticipated testimony; The Inspector General or designee (6) If testimony is sought, a showing may, where appropriate, designate an- that Office of Inspector General records other Office of Inspector General em- could not be provided and used in place ployee to respond to a request for an of the requested testimony; appearance. (7) The intended use of the documents or testimony; and § 230.23 May an Office of Inspector (8) An affirmative statement that the General employee testify as an ex- documents or testimony is necessary pert or opinion witness? for defending or prosecuting the case at No, an Office of Inspector General issue. employee may not testify as an expert [68 FR 57372, Oct. 3, 2003, as amended at 71 FR or opinion witness with regard to any 11161, Mar. 6, 2006] matter arising out of the employee’s duties or functions at the Office of In- § 230.25 Who pays the costs incurred spector General for any party other when the Office of Inspector Gen- than the United States, except that in eral responds to a demand for docu- extraordinary circumstances, and ments or testimony? where the anticipated testimony will (a) Unless determined by 28 U.S.C. not be adverse to the interest of the 1821 or other applicable statute, the United States, the authorizing official costs of providing testimony, including may approve such testimony in private the cost of transcripts, shall be borne litigation. A litigant must first obtain by the requesting party. Furthermore, the permission of an authorizing offi- unless limited by statute, such costs cial designated by the Inspector Gen- shall also include reimbursement to eral before designating an Office of In- the Office of Inspector General for the spector General employee as an expert usual and ordinary expenses attendant or opinion witness. upon the employee’s absence from his

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or her official duties in connection Subpart C—Rules of Procedure with the case or matter, including the Relating to the Disposition of employee’s salary and applicable over- Stolen Mail Matter and Prop- head charges, and any necessary travel erty Acquired by the Office expenses as follows: Of Inspector General for Use (1) The Office of Inspector General is as Evidence authorized to charge reasonable fees to parties demanding documents or information. Such fees, calculated to reim- SOURCE: 81 FR 50624, Aug. 2, 2016, unless otherwise noted. burse the Office of Inspector General for the cost of responding to a demand, § 230.30 Scope. may include the costs of time expended This subpart prescribes procedures by Office of Inspector General employ- governing the disposition of any prop- ees, including attorneys, to process and erty (real, personal, tangible, or intan- respond to the demand; attorney time gible) obtained by the United States for reviewing the demand and for legal Postal Service Office of Inspector Gen- work in connection with the demand; eral (Office of Inspector General) for expenses generated by equipment used possible use as evidence after the need to search for, produce, and copy the re- to retain such property no longer ex- quested information; and travel costs ists. of the employee and the agency attorney or other representative, including § 230.31 Definitions. lodging and per diem. Such fees shall The following definitions apply to be assessed at the rates and in the this subpart: manner specified in 39 CFR 265.9. (a) Apparent. That which is clear, (2) At the discretion of the Office of plain, and evident. Inspector General where appropriate, (b) Owner. The person recognized by fees and costs may be estimated and the law as having ultimate control collected before testimony is given. over and the right to use property. (b) The provisions of Subpart B do (c) Claimant. A person who submits a not affect rights and procedures gov- claim for abandoned or other un- erning public access to official docu- claimed property. ments pursuant to the Freedom of In- (d) Ruling official. The official who has the authority to grant or deny a formation Act, 5 U.S.C. 552a. claim for abandoned or other un- § 230.26 Do these rules affect the serv- claimed property, typically the Execu- ice of process requirements of the tive Special Agent in Charge of the Federal Rules of Civil Procedure Area Field Office where the property is (28 U.S.C. Appendix)? located, or a designee. No, the rules in subpart B in no way § 230.32 Disposition of property of ap- modify the requirements of the Federal parent owners where property is Rules of Civil Procedure regarding valued over $200. service of process. Where an apparent owner of property subject to this subpart is known, and § 230.27 Do these rules create any the estimated value of the property ex- right or benefit enforceable by a ceeds $200, the owner shall be notified party against the Postal Service? by certified mail at his last known ad- No, subpart B is intended to provide dress. The written notice shall describe instructions to Office of Inspector Gen- the property and the procedure for fil- eral employees and members of the ing a claim for its return (see, §§ 230.36 public. It does not create any right or and 230.39). Such claims must be filed benefit, substantive or procedural, en- within 30 days from the date the writ- forceable by any party against the Of- ten notice is postmarked. If the appar- fice of Inspector General or the Postal ent owner of the property fails to file a Service. timely claim, the property is considered abandoned and must be disposed of as provided in § 230.38.

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§ 230.33 Disposition of property of ap- owner to submit a valid claim as pro- parent owners where property is vided in § 230.38. valued at $200 or less. Where an apparent owner of property § 230.36 Contraband and property sub- subject to this subpart is known, and ject to court order. the estimated value of the property is Claims submitted with respect to $200 or less, the Executive Special property subject to this subpart, pos- Agent in Charge, or a designee, should session of which is unlawful, must be attempt to return the property to the denied, in writing, by certified mail, owner. If successful, the Executive Spe- and the person submitting the claim cial Agent in Charge shall request the must be accorded 45 days from the owner sign a Hold Harmless Agree- postmarked date to institute judicial ment. If not, the Executive Special proceedings to challenge the denial. If Agent in Charge shall vest title in the judicial proceedings are not instituted Government. within 45 days, or any extension of time for good cause shown, the contra- § 230.34 Disposition of property of un- band property must be destroyed unknown owners where property is less the Executive Special Agent in valued over $200. Charge, or a designee, determines that (a) Where no apparent owner of prop- it should be placed in official use by erty subject to this subpart is known, the Office of Inspector General. Prop- except property described in § 230.36, erty subject to this part, the disposi- and the estimated value of the prop- tion of which is involved in litigation erty exceeds $200, the Executive Spe- or is subject to an order of court, must cial Agent in Charge, or a designee, be disposed of as determined by the must publish notice providing the fol- court. lowing information: (1) A description of the property, in- § 230.37 Determination of type of prop- cluding model or serial numbers, if erty. known; If the Office of Inspector General is (2) A statement of the location where unable to determine whether the per- the property was found; sonal property in its custody is aban- (3) The name, address, and telephone doned or voluntarily abandoned, it number of the Executive Special Agent shall contact the Office of Inspector in Charge who has custody of the property; and General, Office of General Counsel for (4) A statement inviting any person such a determination. who believes he or she is fully entitled § 230.38 Disposition of abandoned to the property to submit a claim for property; additional period for fil- its return with the Executive Special ing claims. Agent in Charge identified in the notice. Such claim must be submitted (a) Upon expiration of the time pro- within 30 days from the date of first vided in §§ 230.32 and 230.34 for the filing publication of the notice. of claims or any extension thereof, and (b) The notice under paragraph (a) of without the receipt of a timely claim, this section must be published for the property described in the notice is three consecutive weeks on the Office considered abandoned and becomes the of Inspector General’s Web site. property of the Government. However, if the owner satisfies the requirements § 230.35 Disposition of property of un- of paragraph (b) of this section, except known owners where property is for property described in § 230.36, such valued at $200 or less. abandoned property must be returned Where the owner of property subject to the owner if a valid claim is filed to this subpart is unknown and the es- within three years from the date the timated value of the property is $200 or property became abandoned, with the less, no notice is required, and the Ex- following qualifications: ecutive Special Agent in Charge, or a (1) Where property has been placed in designee, should vest title in the Gov- official use by the Office of Inspector ernment, subject to the rights of the General, a person submitting a valid

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claim under this section must be reim- viously presented. It must be sub- bursed the fair market value of the mitted within 10 days of the post- property at the time title vested in the marked date of the letter denying the Office of Inspector General, less costs claim. The ruling official shall advise incurred in returning or attempting to the Asset Forfeiture Coordinator if a return such property to the owner; or timely reconsideration of the denial is (2) Where property has been sold, a made. The Office of Inspector General, person submitting a valid claim under Office of General Counsel shall rule on this section must be reimbursed the the reconsideration request. same amount as the last appraised value of the property prior to the sale § 230.42 Disposition of property de- of such property. clared abandoned where title vests (b) In order to present a valid claim in the government. under paragraph (a) of this section, the Property declared abandoned, includ- claimant must establish he or she had ing cash and proceeds from the sale of no actual or constructive notice that property subject to this part, may be he or she was entitled to file a claim shared with federal, state, or local law pursuant to § 230.32 or § 230.34 prior to enforcement agencies. Abandoned prop- the date the property became aban- erty may also be destroyed, sold, or doned. Publication of a notice pursuant placed into official use. However, be- to § 230.34 provides constructive notice, fore abandoned property can be shared unless a claimant can demonstrate cir- with another agency, sold, or placed cumstances that reasonably precluded into official use, the Executive Special his or her access to the published no- Agent in Charge must confer with the tice. Office of Inspector General, Office of General Counsel. Abandoned property § 230.39 Submission of claims. that is not shared with other agencies Claims submitted pursuant to this shall be converted into a monetary in- subpart must be submitted on Postal strument and deposited into the Postal Service Form 1503, which may be ob- Service Fund established by 39 U.S.C. tained from the Executive Special 2003. The Executive Special Agent in Agent in Charge who has custody of the Charge of Headquarters Operations, or property. a designee, in consultation with the Of- fice of General Counsel, shall deter- § 230.40 Determination of claims. mine which accounts within the Postal Upon receipt of a claim under this Service Fund will receive the proceeds subpart, the Office of Inspector General of abandoned property. must conduct an investigation to determine the merits of the claim. The PART 231—PROTECTION OF POST results of the investigation must be OFFICES submitted to the ruling official, who must approve or deny the claim by Sec. written decision, a copy of which must 231.1 Responsibility. be forwarded to the claimant by cer- 231.2 Security Control Officer. tified mail. If the claim is granted, the conditions of relief and the procedures § 231.1 Responsibility. to be followed to obtain the relief shall (a) The protection of mail, postal be set forth. If the claim is denied, the funds, and property is a responsibility claimant shall be advised of the reason of every postal employee. for such denial. For claims involving (b) The Chief Postal Inspector is des- firearms or contraband, the ruling offi- ignated as the Security Officer for the cial shall consult with the Office of In- U.S. Postal Service. That official is re- spector General, Office of General sponsible for the issuance of instruc- Counsel prior to rendering a decision. tions and regulations pertaining to security requirements within the Postal § 230.41 Reconsideration of claims. Service. A written request for reconsideration of denied claims must be based on evi- (39 U.S.C. 401) dence recently developed or not pre- [36 FR 4762, Mar. 12, 1971]

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§ 231.2 Security Control Officer. (2) Vehicles and their contents brought into, while on, or being re- The postmaster or a supervisor des- moved from restricted nonpublic areas ignated by the postmaster shall act as are subject to inspection. A promi- Security Control Officer for each post nently displayed sign shall advise in office. The Security Control Officer advance that vehicles and their con- shall be responsible for the general se- tents are subject to inspection when curity of the post office, its stations entering the restricted nonpublic area, and branches, in accordance with rules while in the confines of the area, or and regulations issued by the Chief when leaving the area. Persons enter- Postal Inspector. ing these areas who object and refuse (39 U.S.C. 401) to consent to the inspection of the ve- [36 FR 4762, Mar. 12, 1971] hicle, its contents, or both, may be denied entry; after entering the area without objection, consent shall be im- PART 232—CONDUCT ON POSTAL plied. A full search of a person and any PROPERTY vehicle driven or occupied by the person may accompany an arrest. AUTHORITY: 18 U.S.C. 13, 3061, 3571; 21 U.S.C. (3) Except as otherwise ordered, prop- 802, 844; 39 U.S.C. 401, 403(b)(3), 404(a)(7), erties must be closed to the public 1201(2). after normal business hours. Properties also may be closed to the public in § 232.1 Conduct on postal property. emergency situations and at such other (a) Applicability. This section applies times as may be necessary for the or- to all real property under the charge derly conduct of business. Admission to and control of the Postal Service, to all properties during periods when such tenant agencies, and to all persons en- properties are closed to the public may tering in or on such property. This sec- be limited to authorized individuals tion shall be posted and kept posted at who may be required to sign the reg- a conspicuous place on all such prop- ister and display identification docu- erty. This section shall not apply to— ments when requested by security force (i) Any portions of real property, personnel or other authorized individ- owned or leased by the Postal Service, uals. that are leased or subleased by the (c) Preservation of property. Improp- Postal Service to private tenants for erly disposing of rubbish, spitting, cre- their exclusive use; ating any hazard to persons or things, (ii) With respect to sections throwing articles of any kind from a 232.1(h)(1) and 232.1(o), sidewalks along building, climbing upon the roof or any the street frontage of postal property part of a building, or willfully destroy- falling within the property lines of the ing, damaging, or removing any prop- Postal Service that are not physically erty or any part thereof, is prohibited. distinguishable from adjacent munic- (d) Conformity with signs and direc- ipal or other public sidewalks, and any tions. All persons in and on property paved areas adjacent to such sidewalks shall comply with official signs of a that are not physically distinguishable prohibitory or directory nature, and from such sidewalks. with the directions of security force (b) Inspection, recording presence. (1) personnel or other authorized individ- Purses, briefcases, and other con- uals. tainers brought into, while on, or being (e) Disturbances. Disorderly conduct, removed from the property are subject or conduct which creates loud and un- to inspection. However, items brought usual noise, or which impedes ingress directly to a postal facility’s customer to or egress from post offices, or other- mailing acceptance area and deposited wise obstructs the usual use of en- in the mail are not subject to inspec- trances, foyers, corridors, offices, ele- tion, except as provided by section 274 vators, stairways, and parking lots, or of the Administrative Support Manual. which otherwise tends to impede or dis- A person arrested for violation of this turb the public employees in the per- section may be searched incident to formance of their duties, or which oth- that arrest. erwise impedes or disturbs the general

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public in transacting business or ob- vilian personnel for contributions by taining the services provided on prop- recognized agencies as authorized erty, is prohibited. under Executive Order 12353, of March (f) Gambling. Participating in games 23, 1982. for money or other personal property, (2) Solicitations and other actions the operation of gambling devices, the which are prohibited by paragraph conduct of a lottery or pool, or the sell- (h)(1) of this section when conducted on ing or purchasing of lottery tickets, is Postal Service property should not be prohibited on postal premises. In ac- directed by mail or telephone to postal cordance with 20 U.S.C. 107a(a)(5), this employees on Postal Service property. prohibition does not apply to the vend- The Postal Service will not accept or ing or exchange of State Lottery tick- distribute mail or accept telephone ets at vending facilities operated by li- calls directed to its employees which censed blind persons where such lot- are believed to be contrary to para- teries are authorized by state law. graph (h)(1) of this section. (g) Alcoholic beverages, drugs, and (3) Leafleting, distributing lit- smoking. (1) A person under the influ- erature, picketing, and demonstrating ence of an alcoholic beverage or any by members of the public are prohib- drug that has been defined as a ‘‘con- ited in lobbies and other interior areas trolled substance’’ may not enter post- of postal buildings open to the public. al property or operate a motor vehicle Public assembly and public address, ex- on postal property. The possession, cept when conducted or sponsored by sale, or use of any ‘‘controlled sub- the Postal Service, are also prohibited stance’’ (except when permitted by in lobbies and other interior areas of law) or the sale or use of any alcoholic postal building open to the public. beverage (except as authorized by the (4) Voter registration. Voter registra- Postmaster General or designee) on tion may be conducted on postal prem- postal premises is prohibited. The term ises only with the approval of the post- ‘‘controlled substance’’ is defined in master or installation head provided section 802 of title 21 U.S.C. that all of the following conditions are (2) Smoking (defined as having a met: lighted cigar, cigarette, pipe, or other smoking material) is prohibited in all (i) The registration must be con- postal buildings and office space, in- ducted by government agencies or non- cluding public lobbies. profit civic leagues or organizations that operate for the promotion of so- (h) Soliciting, electioneering, collecting cial welfare but do not participate or debts, vending, and advertising. (1) Solic- iting alms and contributions, cam- intervene in any political campaign on paigning for election to any public of- behalf of any candidate or political fice, collecting private debts, soliciting party for any public office. and vending for commercial purposes (ii) Absolutely no partisan or polit- (including, but not limited to, the ical literature may be available, dis- vending of newspapers and other publi- played, or distributed. This includes cations), displaying or distributing photographs, cartoons, and other commercial advertising, collecting sig- likenesses of elected officials and can- natures on petitions, polls, or surveys didates for public office. (except as otherwise authorized by (iii) The registration is permitted Postal Service regulations), are prohib- only in those areas of the postal prem- ited. These prohibitions do not apply ises regularly open to the public. to: (iv) The registration must not inter- (i) Commercial or nonprofit activi- fere with the conduct of postal busi- ties performed under contract with the ness, postal customers, or postal oper- Postal Service or pursuant to the pro- ations. visions of the Randolph-Sheppard Act; (v) The organization conducting the (ii) Posting notices on bulletin voter registration must provide and be boards as authorized in § 243.2(a) of this responsible for any equipment and sup- chapter; plies. (iii) The solicitation of Postal Serv- (vi) Contributions may not be solic- ice and other Federal military and ci- ited.

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(vii) Access to the workroom floor is (5) Parking without authority, park- prohibited. ing in unauthorized locations or in lo- (viii) The registration activities are cations reserved for other persons, or limited to an appropriate period before continuously in excess of 18 hours an election. without permission, or contrary to the (5) Except as part of postal activities direction of posted signs is prohibited. or activities associated with those per- This section may be supplemented by mitted under paragraph (h)(4) of this the postmaster or installation head section, no tables, chairs, freestanding from time to time by the issuance and signs or posters, structures, or fur- posting of specific traffic directives as niture of any type may be placed in may be required. When so issued and postal lobbies or on postal walkways, posted such directives shall have the steps, plazas, lawns or landscaped same force and effect as if made a part areas, driveways, parking lots, or other hereof. exterior spaces. (l) Weapons and explosives. Notwith- (i) Photographs for news, advertising, standing the provisions of any other or commercial purposes. Except as pro- law, rule or regulation, no person while hibited by official signs or the direc- on postal property may carry firearms, tions of security force personnel or other dangerous or deadly weapons, or other authorized personnel, or a Fed- explosives, either openly or concealed, eral court order or rule, photographs or store the same on postal property, for news purposes may be taken in en- except for official purposes. trances, lobbies, foyers, corridors, or (m) Nondiscrimination. There must be auditoriums when used for public meet- no discrimination by segregation or ings. Other photographs may be taken otherwise against any person or per- only with the permission of the local sons because of race, color, religion, postmaster or installation head. national origin, sex, or disability, in (j) Dogs and other animals. Dogs and furnishing, or by refusing to furnish to other animals, except those used to as- such person or persons the use of any sist persons with disabilities, must not facility of a public nature, including be brought upon postal property for all services, privileges, accommoda- other than official purposes. tions, and activities provided on postal (k) Vehicular and pedestrian traffic. (1) property. Drivers of all vehicles in or on property (n) Conduct with regard to meetings of shall be in possession of a current and the Board of Governors. (1) Without the valid state or territory issued driver’s permission of the chairman no person license and vehicle registration, and may participate in, film, televise, or the vehicle shall display all current broadcast any portion of any meeting and valid tags and licenses required by of the Board or any subdivision or com- the jurisdiction in which it is reg- mittee of the Board. Any person may istered. electronically record or photograph a (2) Drivers who have had their privi- meeting, as long as that action does lege or license to drive suspended or re- not tend to impede or disturb the mem- voked by any state or territory shall bers of the Board in the performance of not drive any vehicle in or on property their duties, or members of the public during such period of suspension or while attempting to attend or observe revocation. a meeting. (3) Drivers of all vehicles in or on (2) Disorderly conduct, or conduct property shall drive in a careful and which creates loud or unusual noise, safe manner at all times and shall com- obstructs the ordinary use of en- ply with the signals and directions of trances, foyers, corridors, offices, security force personnel, other author- meeting rooms, elevators, stairways, or ized individuals, and all posted traffic parking lots, or otherwise tends to im- signs. pede or disturb the members of the (4) The blocking of entrances, drive- Board in the performance of their du- ways, walks, loading platforms, or fire ties, or members of the public while at- hydrants in or on property is prohib- tempting to attend or observe a meet- ited. ing of the Board or of any subdivision,

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or committee of the Board, is prohib- tions shall be construed to abrogate ited. any other Federal laws or regulations (3) Any person who violates para- or any State and local laws and regula- graph (n) (1) or (2) of this section may, tions applicable to any area in which in addition to being subject to the pen- the property is situated. alties prescribed in paragraph (p) of (q) Enforcement. (1) Members of the this section, be removed from and U.S. Postal Service security force shall barred from reentering postal property exercise the powers provided by 18 during the meeting with respect to U.S.C. 3061(c)(2) and shall be respon- which the violation occurred. sible for enforcing the regulations in (4) A copy of the rules of this section this section in a manner that will pro- governing conduct on postal property, tect Postal Service property and per- including the rules of this paragraph sons thereon. appropriately highlighted, shall be (2) Local postmasters and installa- posted in prominent locations at the tion heads may, pursuant to 40 U.S.C. public entrances to postal property and 1315(d)(3) and with the approval of the outside the meeting room at any meet- chief postal inspector or his designee, ing of the Board of Governors or of any enter into agreements with State and subdivision or committee of the Board. local enforcement agencies to insure (o) Depositing literature. Depositing or that these rules and regulations are en- posting handbills, flyers, pamphlets, forced in a manner that will protect signs, poster, placards, or other lit- Postal Service property. erature, except official postal and (3) Postal Inspectors, Office of In- other Governmental notices and an- spector General Criminal Investiga- nouncements, on the grounds, walks, tors, and other persons designated by driveways, parking and maneuvering the Chief Postal Inspector may like- areas, exteriors of buildings and other wise enforce regulations in this sec- structures, or on the floors, walls, tion. stairs, racks, counters, desks, writing [37 FR 24346, Nov. 16, 1972] tables, window-ledges, or furnishings in EDITORIAL NOTE: For FEDERAL REGISTER ci- interior public areas on postal prem- tations affecting § 232.1, see the List of CFR ises, is prohibited. This prohibition Sections Affected, which appears in the does not apply to: Finding Aids section of the printed volume (1) Posting notices on bulletin boards and at www.fdsys.gov. as authorized in § 243.2(a) of this chapter; PART 233—INSPECTION SERVICE (2) Interior space assigned to tenants AUTHORITY for their exclusive use; (3) Posting of notices by U.S. Govern- Sec. ment-related organizations, such as the 233.1 Arrest and investigative powers of Inaugural Committee as defined in 36 Postal Inspectors. U.S.C. 501. 233.2 Circulars and rewards. (p) Penalties and other law. (1) Alleged 233.3 Mail covers. violations of these rules and regula- 233.4 Withdrawal of mail privileges. 233.5 Requesting financial records from a fi- tions are heard, and the penalties pre- nancial institution. scribed herein are imposed, either in a 233.6 Test purchases under 39 U.S.C. 3005(e). Federal district court or by a Federal 233.7 Forfeiture authority and procedures. magistrate in accordance with applica- 233.8 Expedited forfeiture proceedings for ble court rules. Questions regarding property seizures based on violations in- such rules should be directed to the re- volving the possession of personal use gional counsel for the region involved. quantities of a controlled substance. (2) Whoever shall be found guilty of 233.9 Regulations governing remission or mitigation of administrative, civil, and violating the rules and regulations in criminal forfeitures. this section while on property under 233.10 [Reserved] the charge and control of the Postal 233.11 Mail reasonably suspected of being Service is subject to a fine as provided dangerous to persons or property. in 18 U.S.C. 3571 or imprisonment of 233.12 Civil penalties. not more than 30 days, or both. Noth- AUTHORITY: 39 U.S.C. 101, 102, 202, 204, 401, ing contained in these rules and regula- 402, 403, 404, 406, 410, 411, 1003, 3005(e)(1); 12

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U.S.C. 3401–3422; 18 U.S.C. 981, 983, 1956, 1957, cretion employed or residing therein. 2254, 3061; 21 U.S.C. 881; Sec. 662, Pub. L. 104– Service by mail is complete upon mail- 208, 110 Stat. 3009–378. ing. (d) In conducting any investigation, § 233.1 Arrest and investigative powers of Postal Inspectors. Postal Inspectors are authorized to accept, maintain custody of, and deliver (a) Authorization. Postal Inspectors mail. are authorized to perform the following functions in connection with their offi- [36 FR 4762, Mar. 12, 1971, as amended at 38 cial duties: FR 19124, July 18, 1973. Redesignated at 46 FR (1) Serve warrants and subpoenas 34330, July 1, 1981; 52 FR 12901, Apr. 20, 1987; issued under the authority of the 56 FR 55823, Oct. 30, 1991; 60 FR 5581, Jan. 30, 1995; 67 FR 16024, Apr. 4, 2002; 72 FR 39011, United States; July 17, 2007] (2) Make arrests without warrant for offenses against the United States § 233.2 Circulars and rewards. committed in their presence; (3) Make arrests without warrant for (a) Wanted circulars. The Inspection felonies cognizable under the laws of Service issues wanted circulars to as- the United States if they have reason- sist in locating and arresting fugitive able grounds to believe that the person postal offenders. Post these circulars in to be arrested has committed or is the most conspicuous place in the post committing such a felony; office lobby and in other prominent (4) Carry firearms; and places. Post near the Notice of Reward (5) Make seizures of property as pro- sign. Telephone or telegraph imme- vided by law. diately to the postal inspector in (b) Limitations. The powers granted charge any information on the possible by paragraph (a) of this section shall be location of the person wanted. Remove exercised only— and destroy circulars immediately (1) In the enforcement of laws regard- when notified of their cancellation or ing property in the custody of the when the circular is not listed in the Postal Service, property of the Postal periodic Postal Bulletin notices of cur- Service, the use of the mails, and other rent wanted circulars. postal offenses. With the exception of (b) Rewards. (1) Rewards will be paid enforcing laws related to the mails: up to the amounts and under the condi- (i) The Office of Inspector General tions stated in Poster 296, Notice of Re- will investigate all allegations of viola- ward, for the arrest and conviction of tions of postal laws or misconduct by persons for the following postal of- postal employees, including mail theft; fenses: and (i) Robbery or attempted robbery. (ii) The Inspection Service will inves- (ii) Mailing or causing to be mailed tigate all allegations of violations of bombs, explosives, poison, weapons of postal laws or misconduct by all other mass destruction, or controlled sub- persons. stances. (2) To the extent authorized by the (iii) Post office burglary. Attorney General pursuant to agree- (iv) Stealing or unlawful possession ment between the Attorney General of mail or money or property of the and the Postal Service, in the enforce- United States under the custody or ment of other laws of the United control of the Postal Service, including States, if the Attorney General deter- property of the Postal Service. mines that the violation of such laws (v) Destroying, obstructing or retard- will have a detrimental effect upon the ing the passage of mail. operations of the Postal Service. (vi) Altering, counterfeiting, forging, (c) Administrative subpoenas may be unlawful uttering or passing of postal served by delivering a copy to a person money orders; or the unlawful use, or by mailing a copy to his or her last counterfeiting or forgery of postage known address. For the purposes of stamps or other postage; or the use, this provision, delivery of a copy in- sale or possession with intent to use or cludes handing it to the party or leav- sell, any forged or counterfeited posting it at the party’s office or residence age stamp or other postage. with a person of suitable age and dis- (vii) Assault on postal employee.

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(viii) Murder or manslaughter of a Money Laundering, $50,000. Mailing or postal employee. causing to be mailed any money which has (ix) Mailing or receiving through the been obtained illegally, or the use of postal money orders to launder illicit proceeds. mail any visual depiction involving the Postage or Meter Tampering, $50,000. The use of a minor engaging in sexually ex- unlawful use, reuse, or forgery of postage plicit conduct, or the use of the mail to stamps, postage meter stamps, permit im- facilitate any crime relating to the prints or other postage; or the use, sale or sexual exploitation of children. possession with intent to use or sell, any (x) Mailing or causing to be mailed used, forged or counterfeited postage stamp or other postage. any money which has been obtained il- Robbery, $50,000. Robbery or attempted legally, or the use of Postal Money Or- robbery of any custodian of any mail, or ders to launder illicit proceeds. money or other property of the United (2) The postmaster or a designated States under the control and jurisdiction of employee should personally present re- the United States Postal Service. ward notices to representatives of Sexual Exploitation of Children, $50,000. The use of the mails to traffic in child por- firms transporting mail, security or de- nography, or facilitate any other crime re- tective units of firms, police officers, lating to the sexual exploitation of children. sheriffs and their deputies, if prac- Burglary of Post Office, $10,000. Breaking ticable, and encourage their coopera- into, or attempting to break into, a post of- tion in protecting mail and Postal fice, station, branch, or building used wholly Service property. (See 273.14 of the Ad- or partially as a post office, or any building ministrative Support Manual). or area in a building where the business of the Postal Service is conducted, with intent NOTE: The text of Poster 296, referred to in to commit a larceny or other depredation paragraph (b)(1) of this section, reads as fol- therein. lows: Offenses Involving Postal Money Orders, The United States Postal Service offers a re- $10,000. Theft or possession of stolen postal ward up to the amounts shown for informa- money orders or any Postal Service equip- tion and services leading to the arrest and ment used to imprint money orders; or alter- conviction of any person for the following of- ing, counterfeiting, forging, unlawful utter- fenses: ing, or passing of postal money orders. Theft, Possession, Destruction, or Obstruc- Murder or Manslaughter, $100,000. The un- tion of Mail, $10,000. Theft or attempted lawful killing of any officer or employee of theft of any mail, or the contents thereof, or the Postal Service while engaged in or on ac- the theft of money or any other property of count of the performance of their official du- the United States under the custody and ties. control of the United States Postal Service Bombs or Explosives, $100,000. Mailing or from any custodian, postal vehicle, railroad causing to be mailed any bombs or explo- depot, airport, or other transfer point, post sives which may kill or harm another, or in- office or station or receptacle or depository jure the mails or other property, or the plac- established, approved, or designated by the ing of any bomb or explosive in a postal fa- Postmaster General for the receipt of mail; cility, vehicle, depository or receptacle es- or destroying, obstructing, or retarding the tablished, approved or designated by the passage of mail, or any carrier or conveyance Postmaster General for the receipt of mail. carrying the mail. Offenses Involving the Mailing of Threat- Workers’ Compensation Fraud, $10,000. De- ening Communications, Weapons of Mass De- frauding the Workers’ Compensation Pro- struction, Poisons, or Hazardous Materials, gram by any current or former postal em- $100,000. Mailing or causing to be mailed any ployee. threatening communications, actual or sim- Related Offenses ulated weapons of mass destruction, dan- The United States Postal Service also of- gerous chemicals or biological materials, fers rewards as stated above for information which may kill or injure another, or injure and services leading to the arrest and convic- the mails or other property. tion of any person: (1) For being an accessory Assault on Postal Employees, $50,000. Forc- to any of the above crimes; (2) for receiving ibly assaulting any officer or employee of or having unlawful possession of any mail, the Postal Service while engaged in or on ac- money or property secured through the count of the performance of their official du- above crimes; and (3) for conspiracy to com- ties. mit any of the above crimes. Controlled Substances, Illegal Drugs, or General Provisions Cash Proceeds from Illegal Drugs, $50,000. 1. The Postal Inspection Service inves- Mailing or causing to be mailed any con- tigates the above described crimes. Informa- trolled substances, illegal drugs, or proceeds tion concerning the violations, requests for from the sale of illegal drugs. applications for rewards, and written claims

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for rewards should be furnished to the near- Postal employees assigned to the Post- est Postal Inspector. The written claim for al Inspection Service or the Law De- reward payment must be submitted within partment are not eligible to receive a six months from the date of conviction of the reward under this section for informa- offender, or the date of formally deferred prosecution or the date of the offender’s tion obtained while so employed. The death, if killed in committing a crime or re- Chief Inspector may establish such pro- sisting lawful arrest for one of the above of- cedures and forms as may be desirable fenses. to give effect to this section including 2. The amount of any reward will be based procedures to protect the identity of on the significance of services rendered, persons claiming rewards under this character of the offender, risks and hazards section. involved, time spent, and expenses incurred. Amounts of rewards shown above are the [36 FR 4673, Mar. 12, 1971, as amended at 42 maximum amounts which will be paid. FR 43836, Aug. 31, 1977. Redesignated at 46 FR 3. The term ‘‘custodian’’ as used herein in- 34330, July 1, 1981, and amended at 47 FR cludes any person having lawful charge, con- 26832, June 22, 1982; 47 FR 46498, Oct. 19, 1982; trol, or custody of any mail matter, or any 49 FR 15191, Apr. 18, 1984; 54 FR 37795, Sept. money or other property of the United 13, 1989; 55 FR 32251, Aug. 8, 1990; 59 FR 5326, States under the control and jurisdiction of Feb. 4, 1994; 60 FR 54305, Oct. 23, 1995; 63 FR the United States Postal Service. 52160, Sept. 30, 1998; 69 FR 16166, Mar. 29, 2004] 4. The Postal Service reserves the right to reject a claim for reward where there has § 233.3 Mail covers. been collusion, criminal involvement, or im- (a) Policy. The U.S. Postal Service proper methods have been used to effect an maintains rigid control and supervision arrest or to secure a conviction. It has the with respect to the use of mail covers right to allow only one reward when several as an investigative technique for law persons were convicted of the same offense, or one person was convicted of several of the enforcement or the protection of na- above offenses. Postal employees are not eli- tional security. gible to receive a reward for the offenses list- (b) Scope. These regulations con- ed above, other than Workers’ Compensation stitute the sole authority and proce- fraud. Employees assigned to the Postal In- dure for initiating a mail cover, and for spection Service, the General Counsel’s of- processing, using and disclosing infor- fice, and those who manage or administer mation obtained from mail covers. the Injury Compensation Program are not el- (c) Definitions. For purpose of these igible to receive rewards. regulations, the following terms are 5. Other rewards not specifically referred to in this notice may be offered upon the ap- hereby defined. proval of the Chief Postal Inspector (39 (1) Mail cover is the process by which U.S.C. 404(a)(8)). a nonconsensual record is made of any data appearing on the outside cover of (c) The Chief Postal Inspector or his any sealed or unsealed class of mail delegate is authorized to pay a reward matter, or by which a record is made of to any person who provides informa- the contents of any unsealed class of tion leading to the detection of persons mail matter as allowed by law, to ob- or firms who obtain, or seek to obtain, tain information in order to: funds, property, or services from the (i) Protect national security, Postal Service based upon false or (ii) Locate a fugitive, fraudulent activities, statements or (iii) Obtain evidence of commission claims. The decision as to whether a or attempted commission of a crime, reward shall be paid and the amount (iv) Obtain evidence of a violation or thereof shall be solely within the dis- attempted violation of a postal statute, cretion of the Chief Postal Inspector or or his delegate and the submission of in- (v) Assist in the identification of formation or a claim for a reward shall property, proceeds or assets forfeitable not establish a contractual right to re- under law. ceive any reward. The reward shall not (2) For the purposes of § 233.3 record is exceed one-half of the amount col- a transcription, photograph, photocopy lected by the Postal Service as a result or any other facsimile of the image of of civil or criminal proceedings to re- the outside cover, envelope, wrapper, cover losses or penalties as a result of or contents of any class of mail. false or fraudulent claims or state- (3) Sealed mail is mail that under ments submitted to the Postal Service. postal laws and regulations is included

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within a class of mail maintained by any authority of a State or local gov- the Postal Service for the transmission ernment, one of whose functions is to: of letters sealed against inspection. (i) Investigate the commission or at- Sealed mail includes: First-Class Mail; tempted commission of acts consti- Priority Mail; Priority Mail Express; tuting a crime, or Outbound International Expedited (ii) Protect the national security. Services (Priority Mail Express Inter- (9) Protection of the national security national; as well as Global Express means to protect the United States Guaranteed items containing only doc- from any of the following actual or po- uments); Outbound Single-Piece First- tential threats to its security by a for- Class Package International Service; eign power or its agents: International Priority Airmail, except (i) An attack or other grave, hostile M-bags; International Surface Air Lift, act; except M-bags; Outbound Single-Piece (ii) Sabotage, or international ter- First-Class Mail International; Global rorism; or Bulk Economy Contracts, except M- (iii) Clandestine intelligence activi- bags; and International Transit Mail. ties, including commercial espionage. (4) Unsealed mail is mail that under (10) Emergency situation refers to cir- postal laws or regulations is not in- cumstances which require the imme- cluded within a class of mail main- diate release of information to prevent tained by the Postal Service for the the loss of evidence or in which there is transmission of letters sealed against a potential for immediate physical inspection. Unsealed mail includes: harm to persons or property. Periodicals; Standard Mail (Commer- (d) Authorizations—Chief Postal In- cial and Nonprofit); Package Services; spector. (1) The Chief Postal Inspector incidental First-Class Mail attach- is the principal officer of the Postal ments and enclosures; Parcel Select; Service in the administration of all Parcel Return Service; First Class matters governing mail covers. The Package Service; USPS Retail Ground; Chief Postal Inspector may delegate Global Express Guaranteed items con- any or all authority in this regard to taining non-documents; Outbound Pri- not more than two designees at Inspec- ority Mail International; International tion Service Headquarters. Direct Sacks—M-bags; and all items (2) Except for national security mail sent via ‘‘Free Matter for the Blind or covers, the Chief Postal Inspector may Handicapped’’ under 39 U.S.C. 3403 and also delegate any or all authority to ‘‘Free Matter for the Blind’’ under the Manager, Inspector Service Oper- International Mail Manual 270. ations Support Group, and, for emer- (5) Fugitive is any person who has fled gency situations, to Inspectors in from the United States or any State, Charge. The Manager, Inspection Serv- the District of Columbia, territory or ice Operations Support Group, may del- possession of the United States, to egate this authority to no more than avoid prosecution for a crime, to avoid two designees at each Operations Sup- punishment for a crime, or to avoid port Group. giving testimony in a criminal pro- (3) All such delegations of authority ceeding. shall be issued through official, written (6) Crime, for the purposes of this sec- directives. Except for delegations at tion, is any commission of an act or Inspection Service Headquarters, such the attempted commission of an act delegations shall only apply to the geo- that is punishable by law by imprison- graphic areas served by the Manager, ment for a term exceeding one year. Inspection Service Operation Support (7) Postal statute refers to a statute Group, or designee. describing criminal activity, regardless (e) The Chief Postal Inspector, or his of the term of imprisonment, for which designee, may order mail covers under the Postal Service has investigative the following circumstances: authority, or which is directed against (1) When a written request is received the Postal Service, its operations, pro- from a postal inspector that states rea- grams, or revenues. son to believe a mail cover will produce (8) Law enforcement agency is any au- evidence relating to the violation of a thority of the Federal Government or postal statute.

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(2) When a written request is received (3) No mail cover shall include mat- from any law enforcement agency in ter mailed between the mail cover sub- which the requesting authority speci- ject and the subject’s known attorney. fies the reasonable grounds to dem- (4) No officer or employee of the onstrate the mail cover is necessary to: Postal Service other than the Chief (i) Protect the national security, Postal Inspector, Manager, Inspection (ii) Locate a fugitive, Service Operations Support Group, and (iii) Obtain information regarding their designees, are authorized to order the commission or attempted commis- mail covers. Under no circumstances sion of a crime, or may a postmaster or postal employee (iv) Assist in the identification of furnish information as defined in property, proceeds or assets forfeitable § 233.3(c)(1) to any person, except as au- because of a violation of criminal law. thorized by a mail cover order issued (3) When time is of the essence, the by the Chief Postal Inspector or des- Chief Postal Inspector, or designee, ignee, or as directed by a postal inspec- may act upon an oral request to be tor under the circumstances described confirmed by the requesting authority in § 233.3(f). in writing within three calendar days. (5) Except for mail covers ordered Information may be released by the upon fugitives or subjects engaged, or Chief Postal Inspector or designee, suspected to be engaged, in any activ- prior to receipt of the written request, ity against the national security, no only when the releasing official is sat- mail cover order shall remain in effect isfied that an emergency situation ex- for more than 30 days, unless adequate ists. justification is provided by the request- (f)(1) Exceptions. A postal inspector, ing authority. At the expiration of the or a postal employee acting at the di- mail cover order period, or prior there- rection of a postal inspector, may to, the requesting authority may be record the information appearing on granted additional 30-day periods under the envelope or outer wrapping, of mail the same conditions and procedures ap- without obtaining a mail cover order, plicable to the original request. The re- only under the circumstances in para- questing authority must provide a graph (f)(2) of this section. statement of the investigative benefit (2) The mail must be: of the mail cover and anticipated bene- (i) Undelivered mail found abandoned fits to be derived from its extension. or in the possession of a person reason- (6) No mail cover shall remain in ably believed to have stolen or embez- force longer than 120 continuous days zled such mail, unless personally approved for further (ii) Damaged or rifled, undelivered extension by the Chief Postal Inspector mail, or or designees at National Headquarters. (iii) An immediate threat to persons (7) Except for fugitive cases, no mail or property. cover shall remain in force when an in- (g) Limitations. (1) No person in the formation has been filed or the subject Postal Service except those employed has been indicted for the matter for for that purpose in dead-mail offices, which the mail cover is requested. If may open, or inspect the contents of, the subject is under investigation for or permit the opening or inspection of further criminal violations, or a mail sealed mail without a federal search cover is required to assist in the identi- warrant, even though it may contain fication of property, proceeds or assets criminal or otherwise nonmailable forfeitable because of a violation of matter, or furnish evidence of the com- criminal law, a new mail cover order mission of a crime, or the violation of must be requested consistent with a postal statute. these regulations. (2) No employee of the Postal Service (8) Any national security mail cover shall open or inspect the contents of request must be approved personally by any unsealed mail, except for the pur- the head of the law enforcement agen- pose of determining: cy requesting the cover or one designee (i) Payment of proper postage, or at the agency’s headquarters level. The (ii) Mailability. head of the agency shall notify the

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Chief Postal Inspector in writing of overseas may be obtained from the De- such designation. partment of Defense. (h) Records. (1) All requests for mail [58 FR 36599, July 8, 1993, as amended at 61 covers, with records of action ordered FR 42557, Aug. 16, 1996; 74 FR 18297, Apr. 22, thereon, and all reports issued pursu- 2009; 81 FR 74308, Oct. 26, 2016] ant thereto, shall be deemed within the custody of the Chief Postal Inspector. § 233.4 Withdrawal of mail privileges. However, the physical storage of this (a) False representation and lottery or- data shall be at the discretion of the ders—(1) Issuance. Pursuant to 39 U.S.C. Chief Postal Inspector. 3005, the Judicial Officer of the Postal (2) If the Chief Postal Inspector, or Service, acting upon a satisfactory evi- his designee, determines a mail cover dentiary basis, may issue a mail-stop was improperly ordered, all data ac- order against anyone seeking mailed quired while the cover was in force remittance of money or property by shall be destroyed, and the requesting means of a false-representation or lot- authority notified of the discontinu- tery scheme. Such orders provide for ance of the mail cover and the reasons return of mail and refund of postal therefor. money orders to remitters. (3) Any data concerning mail covers (2) Enforcement. Notice of these or- shall be made available to any mail ders, including any necessary instruc- cover subject in any legal proceeding tions on enforcement responsibilities through appropriate discovery proce- and procedures, is published in the dures. Postal Bulletin. Generally, an order (4) The retention period for files and against a domestic enterprise is en- records pertaining to mail covers shall forced only by the post office des- be 8 years. ignated in the order. All personnel (i) Reporting to requesting authority. processing mail for dispatch abroad as- Once a mail cover has been duly or- sist in enforcing orders against foreign dered, authorization may be delegated enterprises by forwarding mail addressed to such enterprises to des- to any employee in the Postal Inspec- ignated post offices. tion Service to transmit mail cover reports directly to the requesting author- (b) Fictitious name or address and not ity. residents of the place of address orders— (1) Issuance. Pursuant to 39 U.S.C. 3003, (j) Review. (1) The Chief Postal In- 3004, when there is satisfactory evi- spector, or his designee at Inspection dence that mail is addressed to a ficti- Service Headquarters shall periodically tious name, title, or address used for review mail cover orders issued by the any unlawful business, and no one has Manager, Inspection Service Oper- established a right to have the mail de- ations Support Group or their des- livered to him, or that mail is ad- ignees to ensure compliance with these dressed to places not the residence or regulations and procedures. regular business address of the person (2) The Chief Postal Inspector shall for whom they are intended to enable select and appoint a designee to con- the person to escape identification, the duct a periodic review of national secu- Judicial Officer may, pursuant to Part rity mail cover orders. 964, order that the mail be returned to (3) The Chief Postal Inspector’s de- the sender. termination in all matters concerning (2) Notice. (i) The Chief Postal Inspec- mail covers shall be final and conclu- tor or his delegate must give notice to sive and not subject to further admin- the addressee of mail withheld from de- istrative review. livery pursuant to 39 U.S.C. 3003, 3004 (k) Military postal system. Section that such action has been taken and 233.3 does not apply to the military advise him that he may: postal system overseas or to persons (A) Obtain such mail upon presenting performing military postal duties over- proof of his identity and right to re- seas. Information about regulations ceive such mail, or prescribed by the Department of De- (B) Petition the Judicial Officer for fense for the military postal system the return of such mail. (ii) The notice

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must be in writing and served by per- satisfied, except in situations (e.g., sec- sonal service upon the addressee or by tion 1113(g)) where no notice is re- Certified Mail (Return Receipt Re- quired. quested) and by First Class Mail. (d) Written request. (1) The formal re- (3) Enforcement. Notice of any order quest must be in the form of a letter or issued pursuant to 39 U.S.C. 3003, 3004, memorandum to an appropriate official and any necessary implementing in- of the financial institution and must structions, are published in the Postal contain: Bulletin. (i) The signature of the issuing offi- [45 FR 1613, Jan. 8, 1980. Redesignated at 46 cial and the official’s name, title, busi- FR 34330, July 1, 1981, and amended at 53 FR ness address, and business phone num- 1780, Jan. 22, 1988] ber; (ii) The identity of the customer or § 233.5 Requesting financial records from a financial institution. customers to whom the records pertain; (a) Definitions. The terms used in this (iii) A reasonable description of the section have the same meaning as records sought; and similar terms used in the Right to Fi- nancial Privacy Act of 1978, Title XI of (iv) Any additional information Pub. L. 95–630. Act means the Right to which may be appropriate—e.g., the Financial Privacy Act of 1978. date when the opportunity for the cus- (b) Purpose. The purpose of these reg- tomer to challenge the formal written ulations is: (1) To authorize the Inspec- request expires, the date when the In- tion Service Department of the U.S. spection Service Department expects Postal Service to request financial to present a certificate of compliance records from a financial institution with the applicable provisions of the pursuant to the formal written request Act, the name and title of the indi- procedure authorized by section 1108 of vidual (if known) to whom disclosure is the Act and (2) to set forth the condi- to be made. tions under which such request may be (2) In cases where customer notice is made. delayed by court order, a copy of the (c) Authorization. The Inspection court order must be attached to the Service Department is authorized to formal written request. request financial records of any cus- (e) Certification. Before obtaining the tomer from a financial institution pur- requested records following a formal suant to a formal written request written request, a supervisory official under the Act only if: authorized to issue a request must cer- (1) No administrative summons or tify in writing to the financial institu- subpoena authority reasonably appears tion that the Inspection Service De- to be available to the Inspection Serv- partment has complied with the appli- ice Department to obtain financial cable provisions of the Act. records for the purpose for which the records are sought; [44 FR 39161, July 5, 1979. Redesignated at 46 (2) There is reason to believe that the FR 34330, July 1, 1981] records sought are relevant to a legiti- § 233.6 Test purchases under 39 U.S.C. mate law enforcement inquiry and will 3005(e). further that inquiry; (3) The request is issued by a super- (a) Scope. This section, which imple- visory official of a rank designated by ments 39 U.S.C. 3005(e), supplements the Chief Postal Inspector. Officials so any postal regulations or instructions designated shall not delegate this au- regarding test purchases or test pur- thority to others; chase procedures. It is limited to test (4) The request adheres to the re- purchases conducted according to 39 quirements set forth in paragraph (d) U.S.C. 3005(e). of this section; and (b) Definitions—(1) Test purchase. The (5) The notice requirements set forth acquisition of any article or service, in section 1108(4) of the Act, or the re- for which money or property are quirements pertaining to the delay of sought through the mails, from the notice in section 1109 of the Act, are person or representative offering the

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article or service. The purpose is to in- (d) Authorizations. The Chief Postal vestigate possible violations of postal Inspector is the principal officer of the laws. Postal Service for the administration (2) Test Purchase Request. A written of all matters governing test purchases document requesting the sale of an ar- under this section. The Chief Inspector ticle or service pursuant to 39 U.S.C. may delegate any or all authority in 3005(e) and containing the following in- this regard to any or all postal inspec- formation: tors. (i) The name and address of the per- [49 FR 7230, Feb. 28, 1984; 49 FR 8250, Mar. 6, son, firm, or corporation to whom the 1984] request is directed; (ii) The name, title, signature, office § 233.7 Forfeiture authority and proce- mailing address, and office telephone dures. number of the person making the re- (a) Scope of regulations. (1) The regu- quest; lations in this section apply to all for- (iii) A description of the article or feitures administered by the United service requested which is sufficient to States Postal Service with the excep- enable the person to whom the request tion of seizures and forfeitures under is made to identify the article or serv- the statutes listed in 18 U.S.C. 983(i). ice being sought; The authority to conduct administra- (iv) A statement of the nature of the tive forfeitures derives from the proce- conduct under investigation; dural provisions of the Customs laws (v) A statement that the article or (19 U.S.C. 1602–1618) where those provi- service must be tendered at the time sions are incorporated by reference in and place stated in the purchase re- the substantive forfeiture statutes. quest, unless the person making the re- (2) The regulations in this section quest and the person to whom it is will apply to all forfeiture actions com- made agree otherwise in writing; menced on or after May 31, 2012. (vi) A verbatim statement of 39 (b) Designation of officials having ad- U.S.C. 3005, 3007; and ministrative forfeiture authority. (1) Ad- (vii) A statement that failure to pro- ministrative forfeiture authority. The vide the requested article or service Chief Postal Inspector is authorized to may be considered in a proceeding conduct administrative forfeitures under 39 U.S.C. 3007 to determine under the statutes identified in para- whether probable cause exists to be- graph (b)(2) of this section, following, lieve that 39 U.S.C. 3005 is being vio- where applicable, the procedures pro- lated. vided by the customs laws of the (c) Service of Test Purchase Request. (1) United States (19 U.S.C. 1602–1618) and The original of the Test Purchase Re- to pay valid liens and mortgages quest must be delivered to the person, against property that has been so for- firm, or corporation to whom the re- feited. quest is made or to his or its represent- (2) Authority of the Chief Postal Inspec- ative. It must be accompanied by a tor. The Chief Postal Inspector is au- check or money order in the amount thorized to perform all duties and re- for which the article or service is of- sponsibilities necessary on behalf of fered for sale, made payable to the per- the Postal Service and the Office of In- son, firm or corporation making the spector General to enforce 18 U.S.C. offer. 981, 983, 2254; 21 U.S.C. 863(c), 881; and 31 (2) The person serving the Test Pur- U.S.C. 5317; following, where applica- chase Request must make and sign a ble, the procedures provided by the record, stating the date and place of Customs laws of the United States (19 service and the name of the person U.S.C. 1602–1618), and to pay valid liens served. The person making the request and mortgages against property that must retain a copy of the Test Pur- has been so forfeited. The Chief Postal chase Request, the record of service, Inspector is authorized to delegate all and the money order receipt or a pho- or any part of this authority to Deputy tocopy of the issued check or the can- Chief Inspectors, Inspectors in Charge, celled check. Alternatively, the re- and Inspectors of the Postal Inspection quest may be made by certified mail. Service, and to issue such instructions

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as may be necessary to carry out this (i) A claim or any other document authority. submitted in an administrative for- (3) State adoption. The seizure of prop- feiture proceeding is not deemed filed erty by a state or local law enforce- until actually received by the appro- ment agency or other entity or indi- priate official identified in the personal vidual may be adopted for forfeiture by written notice and the published notice the Postal Inspection Service, as ap- specified in paragraph (i) of this sec- propriate under its seizure authority tion. A claim is not considered filed if pursuant to paragraphs (b)(1) and (2) of it is received by any other office or of- this section. ficial. In addition, a claim in an admin- (c) Definitions. As used in this sec- istrative forfeiture proceeding is not tion, the following terms shall have the considered filed if received only by an meanings specified: electronic or facsimile transmission. (1) Administrative forfeiture means the (ii) For purposes of computing the process by which property may be for- start of the 90-day period set forth in 18 feited by the Postal Inspection Service U.S.C. 983(a)(3), an administrative for- rather than through judicial pro- feiture claim is filed on the date when ceedings. Administrative forfeiture has the claim is received by the designated the same meaning as nonjudicial for- official, even if the claim is received feiture, as that term is used in 18 from an incarcerated pro se prisoner. U.S.C. 983. (9) Interested party means any person (2) Appraised value means the esti- who reasonably appears to have an in- mated market value of property at the terest in the property, based on the time and place of seizure if such or facts known to the Postal Inspection similar property was freely offered for Service before a declaration of for- sale between a willing seller and a will- feiture is entered. ing buyer. (10) Judicial forfeiture means either a (3) Appropriate official means the civil or a criminal proceeding in a Chief Postal Inspector or that person’s United States District Court that may designee, or where the term ‘‘appro- result in a final judgment and order of priate official’’ means the office or offi- forfeiture. cial identified in the notice published (11) Mail includes regular or certified or personal written notice in accord- U.S. mail, and mail and package trans- ance with paragraph (j) of this section. portation and delivery services pro- (4) Contraband means: vided by other private or commercial (i) Any controlled substance, haz- interstate carriers. ardous raw material, equipment or con- (12) Nonjudicial forfeiture has the tainer, plants, or other property sub- same meaning as administrative for- ject to summary forfeiture pursuant to feiture. See paragraph (b)(1) of this sec- sections 511(f) or (g) of the Controlled tion. Substances Act (21 U.S.C. 881(f) or (g)); (13) Person means an individual, part- or nership, corporation, joint business en- (ii) Any controlled substance im- terprise, estate, or other legal entity ported into the United States, or ex- capable of owning property. ported out of the United States, in vio- (14) Property subject to administrative lation of law. forfeiture means any personal property (5) Civil forfeiture proceeding means a of the kinds described in 19 U.S.C. civil judicial forfeiture action as that 1607(a)(1)(4). term is used in 18 U.S.C. 983. (15) Property subject to forfeiture refers (6) Domestic value means the same as to all property that Federal law au- the term appraised value as defined in thorizes to be forfeited to the United paragraph (c)(2) of this section. States of America in any administra- (7) Expense means all costs incurred tive forfeiture proceeding, in any civil to detain, inventory, safeguard, main- judicial forfeiture proceeding, or in any tain, advertise, sell, or dispose of prop- criminal forfeiture proceeding. erty under seizure, detained, or for- (d) Seizing property subject to forfeited pursuant to any law. feiture—(1) Authority to seize property. (8) File or filed has the following Postal Inspectors may seize assets meanings: under any Federal statute over which

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the Postal Inspection Service has in- (ii) The seized currency has a value vestigative or forfeiture jurisdiction. greater than $5,000, and the Chief, (2) Turnover of assets seized by state Asset Forfeiture Money Laundering and local agencies. (i) Property that is Section (AFMLS) determines in writ- seized by a state or local law enforce- ing that the currency is reasonably ment agency and transferred to the likely to serve a significant, inde- Postal Inspection Service for adminis- pendent, tangible, evidentiary purpose, trative or civil forfeiture may be or that retention is necessary while the adopted for administrative forfeiture potential evidentiary significance of without the issuance of any Federal the currency is being determined by seizure warrant or other Federal judi- scientific testing or otherwise. cial process. (3) Seized currency has a significant (ii) Where a state or local law en- independent, evidentiary purpose as forcement agency maintains custody of those terms are used in paragraphs property pursuant to process issued by (f)(2)(i) and (f)(2)(ii) of this section if, a state or local judicial authority, and for example, it bears fingerprint evi- notifies the Postal Inspection Service dence, is packaged in an incriminating of the impending release of such prop- fashion, or contains a traceable erty, the Postal Inspection Service amount of narcotic residue or some may seek and obtain a Federal seizure other substance of evidentiary signifi- warrant in anticipation of a state or cance. If only a portion of the seized local judicial authority releasing the currency has evidentiary value, only asset from state process for purposes of that portion should be retained; the Federal seizure, and may execute such balance should be deposited. seizure warrant when the state or local (g) Appraisal. The Postal Inspection law enforcement agency releases the Service shall determine the domestic property as allowed or directed by its value of the seized property as soon as judicial authority. practicable following seizure. (e) Inventory. The Postal Inspection (h) Release before claim. (1) After sei- Service shall prepare an inventory of zure for forfeiture and prior to the fil- any seized property. ing of any claim, the appropriate offi- (f) Custody. (1) All property seized by cial is authorized to release property Postal Inspectors for forfeiture shall be seized for forfeiture provided: delivered to the custody of the U.S. (i) The property is not contraband, Marshals Service, or custodian ap- evidence of a violation of law, or any proved by the U.S. Marshals Service, as property, the possession of which by soon as possible after seizure, unless it the claimant, petitioner, or the person is retained as evidence. from whom it was seized is prohibited (2) Seized U.S. currency (and to the by state or Federal law, and does not extent practicable seized foreign cur- have a design or other characteristic rency and negotiable instruments) that particularly suits it for use in ille- must be deposited promptly in the gal activities; and Holding Account—Seizure and For- (ii) The appropriate official deter- feiture under the control of the Postal mines within 10 days of seizure that Inspection Service pending forfeiture. there is an innocent party with the Provisional exceptions to this require- right to immediate possession of the ment may be granted as follows: property or that the release would be (i) If the seized currency has a value in the best interest of justice or the less than $5,000, and a supervisory offi- Government. cial within the U.S. Attorney’s Office (2) Further, at any time after seizure determines in writing that the cur- and before any claim is filed, such rency is reasonably likely to serve a seized property may be released if the significant, independent, tangible, evi- appropriate official determines that dentiary purpose, or that retention is there is an innocent party with the necessary while the potential evi- right to immediate possession of the dentiary significance of the currency is property or that the release would be being determined by scientific testing in the best interest of justice or the or otherwise, or Government.

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(i) Commencing an administrative for- (D) State the identity of the appro- feiture. An administrative forfeiture priate official of the Postal Inspection proceeding begins when notice is first Service and the address where the published in accordance with para- claim must be filed; and graph 233.7(i)(1), or the first personal (E) Describe the seized property. written notice is sent in accordance (3) Timing of notice—(i) Date of per- with paragraph 233.7(i)(2), whichever sonal notice. Personal written notice is occurs first. sent on the date when the Postal In- (j) Notice of administrative forfeiture— spection Service causes it to be placed (1) Notice by publication. (i) After seiz- in the mail, or otherwise sent by means ing property subject to administrative reasonably calculated to reach the in- forfeiture, the Appropriate Official terested party. The personal written shall select from the following options notice required by paragraph (i)(2) of a means of publication reasonably cal- this section shall be sent as soon as culated to notify potential claimants practicable, and in no case more than of the seizure and intent to forfeit and 60 days after the date of seizure (or 90 sell or otherwise dispose of the property: days after the date of seizure by a state or local law enforcement agency if the (A) Publication once each week for at least three successive weeks in a news- property was turned over to the Postal paper generally circulated in the judi- Inspection Service for the purpose of cial district where the property was forfeiture under Federal law). seized; or (ii) Civil judicial forfeiture. If, before (B) Posting a notice on an official the time period for sending notice ex- Government Internet site for at least pires, the Government files a civil judi- 30 consecutive days. cial forfeiture action against the seized (ii) The published notice shall: property and provides notice of such (A) Describe the seized property; action as required by law, personal no- (B) State the date, statutory basis, tice of administrative forfeiture is not and place of seizure; required under this paragraph. (C) State the deadline for filing a (iii) Criminal indictment. If, before the claim when personal written notice has time period for sending notice under not been received, at least 30 days after this paragraph expires, no civil judicial the date of final publication of the no- forfeiture action is filed, but a criminal tice of seizure; and indictment or information is obtained (D) State the identity of the appro- containing an allegation that the prop- priate official of the Postal Inspection erty is subject to forfeiture, the seizing Service and address where the claim agency shall either: must be filed. (A) Send timely personal written no- (2) Personal written notice—(i) Manner tice and continue the administrative of providing notice. After seizing prop- forfeiture proceeding; or erty subject to administrative for- (B) After consulting with the U.S. feiture, the Postal Inspection Service, Attorney, terminate the administra- in addition to publishing notice, shall tive forfeiture proceeding and notify send personal written notice of the sei- the custodian to return the property to zure to each interested party in a man- the person having the right to imme- ner reasonably calculated to reach diate possession unless the U.S. Attor- such parties. ney takes steps necessary to maintain (ii) Content of personal written notice. custody of the property as provided in The personal written notice sent by the the applicable criminal forfeiture stat- Postal Inspection Service shall: ute. (A) State the date when the personal (4) Subsequent Federal seizure. If prop- written notice is sent; erty is seized by a state or local law en- (B) State the deadline for filing a forcement agency, but personal written claim, at least 35 days after the per- notice is not sent to the person from sonal written notice is sent; whom the property is seized within the (C) State the date, statutory basis, time period for providing notice under and place of seizure; paragraph (j)(3)(i) of this section, then

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any administrative forfeiture pro- tended except by a court pursuant to 18 ceeding against the property may com- U.S.C. 983(a)(1)(C), (D)), if the Chief mence if: Counsel for the Postal Inspection Serv- (i) The property is subsequently ice determines, and states in writing, seized or restrained by the Postal In- that there is reason to believe that no- spection Service pursuant to a Federal tice may have an adverse result, in- seizure warrant or restraining order cluding: Endangering the life or phys- and the Postal Inspection Service sends ical safety of an individual; flight from notice as soon as practicable, and in no prosecution; destruction of or tam- case more than 60 days after the date pering with evidence; intimidation of of the Federal seizure; or potential witnesses; or otherwise seri- (ii) The owner of the property con- ously jeopardizing an investigation, or sents to forfeiture of the property. unduly delaying a trial. (5) Tolling. (i) In states or localities (8) Certification. The Chief Counsel for where orders are obtained from a state the Postal Inspection Service shall pro- court authorizing the turnover of vide the written certification required seized assets to the Postal Inspection under 18 U.S.C. 983(a)(1)(C) when the Service, the period from the date an Government requests it and the condi- application or motion is presented to tions described in 18 U.S.C. 983(a)(1)(D) the state court for the turnover order are present. through the date when such order is (k) Claims—(1) Filing. In order to con- issued by the court shall not be in- test the forfeiture of seized property in cluded in the time period for providing Federal court, any person asserting an notice under paragraph (j)(3)(i) of this interest in seized property subject to section. an administrative forfeiture proceeding (ii) If property is detained at an under these regulations must file a international border or port of entry claim with the appropriate official, for the purpose of examination, test- after the commencement of the admin- ing, inspection, obtaining documenta- istrative forfeiture proceeding as de- tion, or other investigation relating to fined in paragraph (h) of this section, the importation of the property into, and not later than the deadline set or the exportation of the property from forth in a personal notice letter sent the United States, such period of de- pursuant to paragraph (i)(2) of this sec- tention shall not be included in the pe- tion. If personal written notice is sent riod described in paragraph (j)(3)(i) of but not received, then the intended re- this section. In such cases, the 60-day cipient must file a claim with the ap- period shall begin to run when the period of detention ends, if a seizing propriate official not later than 30 days agency seizes the property for the pur- after the date of the final publication pose of forfeiture to the United States. of the notice of seizure. (6) Identity of interested party. If the (2) Contents of claim. A claim shall: Postal Inspection Service determines (i) Identify the specific property the identity or interest of an interested being claimed; party after the seizure or adoption of (ii) Identify the claimant and state the property, but before entering a dec- the claimant’s interest in the property; laration of forfeiture, the Postal In- and spection Service shall send written no- (iii) Be made under oath by the tice to such interested party under claimant, not counsel for the claimant, paragraph 3(i) not later than 60 days and recite that it is made under the after determining the identity of the penalty of perjury, consistent with the interested party or the interested par- requirements of 28 U.S.C. 1746. An ac- ty’s interest. knowledgement, attestation, or certifi- (7) Extending deadline for notice. The cation by a notary public alone is in- Chief Counsel for the Postal Inspection sufficient. Service may extend the period for (3) Availability of claim forms. The sending personal written notice under claim need not be made in any par- these regulations in a particular case ticular form. However, the Postal In- for a period not to exceed 30 days spection Service will make claim forms (which period may not be further ex- generally available on request. Such

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forms shall be written in easily under- Inspection Service shall suspend the standable language. A request for a administrative forfeiture proceedings claim form does not extend the dead- and promptly transmit the claim, to- line for filing a claim. Any person may gether with a description of the prop- obtain a claim form by requesting one erty and a complete statement of the in writing from the appropriate offi- facts and circumstances surrounding cial. the seizure to the appropriate U.S. At- (4) Cost bond not required. Any person torney for commencement of judicial may file a claim under paragraph forfeiture proceedings. 233.7(k)(1) without posting bond, except (7) Defective claims. If the Postal In- in forfeitures under statutes listed in spection Service determines that an 18 U.S.C. 983(i). otherwise timely claim does not meet (5) Referral of claim. Upon receipt of a the requirements of paragraph (k)(2) of claim that meets the requirements of this section, the Postal Inspection paragraphs (k)(1) and (2) of this sec- Service may notify the claimant of this tion, the Postal Inspection Service determination and allow the claimant shall return the property or suspend a reasonable time to cure the defect(s) the administrative forfeiture pro- in the claim. If, within the time al- ceeding and promptly transmit the lowed by the Postal Inspection Service, claim, together with a description of the requirements of paragraph (k)(2) of the property and a complete statement this section are not met, the claim of the facts and circumstances sur- shall be void and the forfeiture pro- rounding the seizure, to the appro- ceedings shall proceed as if no claim priate U.S. Attorney for commence- had been submitted. If the claimant ment of judicial forfeiture proceedings. timely cures the deficiency, then the Upon making the determination that claim shall be deemed filed on the date the seized property will be released, the when the appropriate official receives Postal Inspection Service shall the cured claim. promptly notify the person with a (l) Interplay of administrative and right to immediate possession of the criminal judicial forfeiture proceedings. property, informing that person to con- An administrative forfeiture pro- tact the property custodian within a ceeding pending against seized or re- specified period for release of the prop- strained property does not bar the Gov- erty, and further informing that person ernment from alleging that the same that failure to contact the property property is forfeitable in a criminal custodian within the specified period case. Notwithstanding the fact that an for release of the property will result in abandonment of the property pursu- allegation of forfeiture has been in- ant to applicable regulations. The cluded in a criminal indictment or in- Postal Inspection Service shall notify formation, the property may be admin- the property custodian of the identity istratively forfeited in a parallel proof the person to whom the property ceeding. should be released. The property custo- (m) Requests for hardship release of dian shall have the right to require seized property. (1) Under certain cir- presentation of proper identification cumstances, a claimant may be enti- and/or to take other steps to verify the tled to immediate release of seized identity of the person who seeks the re- property on the basis of hardship. lease of property, or both. (2) Any person filing a request for (6) Premature filing. If a claim is filed hardship release must also file a claim with the appropriate official after the to the seized property pursuant to seizure of the property, but before the paragraph (k) of this section and as de- commencement of the administrative fined in 18 U.S.C. 983(a). forfeiture proceeding as defined in (3) The timely filing of a valid claim paragraph (i) of this section, the claim pursuant to paragraph (k) of this sec- shall be deemed filed on the 30th day tion does not entitle the claimant to after the commencement of the admin- possession of the seized property, but a istrative forfeiture proceeding. If such claimant may request immediate re- claim meets the requirements of para- lease of the property while forfeiture is graph (k)(2) of this section, the Postal pending, based on hardship.

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(4) A claimant seeking release of 983(f)(3). If a petition is filed in Federal property under 18 U.S.C. 983(f) and district court, the claimant must send these regulations must file a written a copy of the petition to the appro- request with the appropriate official. priate official to whom the hardship The request must establish that: petition was originally submitted and (i) The claimant has a possessory in- to the U.S. Attorney in the judicial dis- terest in the property; trict where the judicial petition was (ii) The claimant has sufficient ties filed. to the community to provide assurance (6) If a civil forfeiture complaint is that the property will be available at filed on property and the claimant files the time of trial; a claim with the court pursuant to 18 (iii) The continued possession by the U.S.C. 983(a)(4)(A) and Rule G(5) of the Government pending the final disposi- Supplemental Rules for Certain Admi- tion of forfeiture proceedings will ralty and Maritime Claims, a hardship cause substantial hardship to the petition may be submitted to the indi- claimant, such as preventing the func- vidual identified in the public or per- tioning of a business, preventing an in- sonal notice of the civil forfeiture ac- dividual from working, or leaving an tion. individual homeless; (n) Disposition of property before for- (iv) The claimant’s likely hardship feiture. (1) Whenever it appears to the from the continued possession by the Postal Inspection Service that any Government of the seized property out- seized property is liable to perish or to weighs the risk that the property will waste, or to be greatly reduced in value be destroyed, damaged, lost, concealed, during its detention for forfeiture, or or transferred if it is returned to the that the expense of keeping the prop- claimant during the pendency of the erty is or will be disproportionate to proceeding; and its value, the Chief Counsel for the (v) The property is not: Postal Inspection Service may order (A) Contraband, any property, the destruction, sale, or other disposition possession of which by the claimant, of such property prior to forfeiture. In petitioner, or person from whom it was addition, the owner may obtain release seized is prohibited by state or Federal of the property by posting a substitute law, currency, or other monetary in- monetary amount with the Postal In- strument, or electronic funds unless spection Service to be held subject to such currency or other monetary in- forfeiture proceedings in place of the strument or electronic funds con- seized property to be released. Upon ap- stitutes the assets of a legitimate busi- proval by the Chief Counsel for the ness which has been seized; Postal Inspection Service, the property (B) Intended to be used as evidence of will be released to the owner upon the a violation of law; payment of an amount equal to the (C) By reason of design or other char- Government appraised value of the acteristic, particularly suited for use property if the property is not evidence in illegal activities; or of a violation of law, is not contraband, (D) Likely to be used to commit addi- and has no design or other characteris- tional criminal acts if returned to the tics that particularly suit it for use in claimant. illegal activities. This payment must (5) A hardship release request pursu- be in the form of a money order, an of- ant to this paragraph shall be deemed ficial bank check, or a cashier’s check to have been made on the date when it made payable to the Postal Inspection is received by the appropriate official Service. A bond in the form of a cash- as defined in paragraph (c)(3) of this ier’s check or official bank check will section, or the date the claim was be considered as paid once the check deemed filed under paragraph (k) of has been accepted for payment by the this section. If the request is ruled on financial institution that issued the and denied by the appropriate official check. If a substitute amount is posted or the property has not been released and the property is administratively within the 15-day time limit period, the forfeited, the Postal Inspection Service claimant may file a petition in Federal will forfeit the substitute amount in district court pursuant to 18 U.S.C. lieu of the property. The pre-forfeiture

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destruction, sale, or other disposition custodian within the specified period of seized property pursuant to this sub- for release of the property may result section shall not extinguish any per- in the initiation of abandonment pro- son’s rights to the value of the prop- ceedings against the property pursuant erty under applicable law. The author- to 39 CFR part 946. The property custo- ity vested in the Chief Counsel for the dian will be notified of the identity of Postal Inspection Service under this the person to whom the property subsection may not be delegated. should be released. (2) The Postal Inspection Service (3) The property custodian shall have shall commence forfeiture proceedings, the right to require presentation of regardless of the disposition of the proper identification or to verify the property under this paragraph. A per- identity of the person who seeks the re- son with an interest in the property lease of property. that was destroyed or otherwise dis- (q) Disposition of forfeited property. (1) posed of under this paragraph may file Whenever property is forfeited admin- a claim to contest the forfeiture of the istratively, the Postal Inspection Serv- property or a petition for remission or ice may: mitigation of the forfeiture. No em- (i) Retain the property for official ployee of the Postal Inspection Service use; shall be liable for the destruction or (ii) Transfer ownership of the prop- other disposition of property made pur- erty to any Federal, state or local law suant to this paragraph. The destruc- enforcement agency that participated tion or other disposition of the prop- in the investigation leading to the for- erty does not impair in rem jurisdic- feiture; tion. (iii) Sell any property that is not re- (o) Declaration of administrative for- quired to be destroyed by law and that feiture. If the Postal Inspection Service is not harmful to the public; commences a timely proceeding (iv) Destroy the property; or against property subject to administra- (v) Dispose of the property as other- tive forfeiture, and no valid and timely wise permitted by law. claim is filed, the appropriate official (2) If the laws of a state in which an shall declare the property forfeited. article of forfeited property is located The declaration of forfeiture shall have prohibit the sale or possession of such the same force and effect as a final de- property, or if the Postal Service and cree and order of forfeiture in a Federal the Marshals Service are of the opinion judicial forfeiture proceeding. that it would be more advantageous to (p) Return of property. (1) If, under 18 sell the forfeited property in another U.S.C. 983(a)(3), the Postal Inspection district, the property may be moved to Service is notified by the U.S. Attor- and sold in such other district. ney in charge of the matter that the 90- (r) Attorney fees and costs. The Postal day deadline was not met, the Postal Inspection Service is not liable for at- Inspection Service is required to re- torney fees or costs in any administra- lease the seized property. Under this tive forfeiture proceeding, including subsection, the Postal Inspection Serv- such proceedings in which a claim is ice is not required to return property filed, the matter is referred to the U.S. for which it has an independent basis Attorney, and the U.S. Attorney de- for continued custody including, but clines to commence judicial forfeiture not limited to, contraband or evidence proceedings. of a violation of law. [77 FR 25596, May 1, 2012] (2) Upon becoming aware that the seized property must be released, the § 233.8 Expedited forfeiture pro- Postal Inspection Service shall ceedings for property seizures promptly notify the person with a based on violations involving the right to immediate possession of the possession of personal use quan- property, informing that person to con- tities of a controlled substance. tact the property custodian within a (a) Purpose and scope. (1) The fol- specified period for release of the prop- lowing definitions, regulations, and cri- erty, and further informing that person teria are designed to establish and im- that failure to contact the property plement procedures required by section

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6079 of the Anti-Drug Abuse Act of 1988, the agency making the determination Public Law 100–690, 102 Stat. 4181. They property sufficient to preserve the Gov- are intended to supplement existing ernment’s vested interest for purposes law and procedures relative to the for- of the administrative forfeiture. feiture of property under the identified (b) Definitions. As used in this sec- statutory authority. These regulations tion, the following terms shall have the do not affect the existing legal and eq- meanings specified: uitable rights and remedies of those (1) Commercial fishing industry vessel with an interest in property seized for means a vessel that: forfeiture, nor do these provisions re- (i) Commercially engages in the lieve interested parties from their ex- catching, taking, or harvesting of fish isting obligations and responsibilities or an activity that can reasonably be in pursuing their interests through expected to result in the catching, tak- such courses of action. These regula- ing, or harvesting of fish; tions are intended to reflect the intent (ii) Commercially prepares fish or of Congress to minimize the adverse fish products other than by gutting, de- impact on those entitled to legal or eq- capitating, gilling, skinning, shucking, uitable relief occasioned by the pro- icing, freezing, or brine chilling; or longed detention of property subject to (iii) Commercially supplies, stores, forfeiture due to violations of law in- refrigerates, or transports fish, fish volving personal use quantities of con- products, or materials directly related trolled substances. The definition of to fishing or the preparation of fish to personal use quantities of a controlled or from a fishing, fish processing, or substance as contained herein is in- fish tender vessel or fish processing fa- tended to distinguish between those cility. small quantities, which are generally (2) Controlled substance has the mean- considered to be possessed for personal ing given in 21 U.S.C. 802(6). consumption and not for further dis- (3) Normal and customary manner tribution, and those larger quantities means that inquiry suggested by par- generally considered to be subject to ticular facts and circumstances that further distribution. would customarily be undertaken by a (2) In this regard, for violations in- reasonably prudent individual in a like volving the possession of personal use or similar situation. Actual knowledge quantities of a controlled substance, of such facts and circumstances is un- section 6079(b)(2) requires either that necessary, and implied, imputed, or administrative forfeiture be completed constructive knowledge is sufficient. within 21 days of the seizure of the An established norm, standard, or cus- property, or alternatively, that proce- tom is persuasive but not conclusive or dures are established that provide a controlling in determining whether an means by which an individual entitled owner acted in a normal and cus- to relief may initiate an expedited ad- tomary manner to ascertain how prop- ministrative review of the legal and erty would be used by another legally factual basis of the seizure for for- in possession of the property. The fail- feiture. Should an individual request ure to act in a normal and customary relief pursuant to these regulations manner as defined herein will result in and be entitled to the return of the the denial of a petition for expedited seized property, such property shall be release of the property and is intended returned immediately following that to have the desirable effect of inducing determination, but not later than 20 owners of the property to exercise days after filing of a petition for expe- greater care in transferring possession dited release by an owner, and the ad- of their property. ministrative forfeiture process shall (4) Owner means one having a legal cease. Should the individual not be en- and possessory interest in the property titled to the return of the seized prop- seized for forfeiture. Even though one erty, however, the administrative for- may hold primary and direct title to feiture of that property shall proceed. the property seized, such person may The owner may, in any event, obtain not have sufficient actual beneficial in- release of property pending the admin- terest in the property to support a pe- istrative forfeiture by submitting to tition as owner if the facts indicate

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that another person had dominion and (B) One gram of a mixture or sub- control over the property. stance containing a detectable amount (5) Personal use quantities means those of the following: amounts of controlled substances in (1) Coca leaves, except coca leaves possession in circumstances where and extracts of coca leaves from which there is no other evidence of an intent cocaine, ecgonine, and derivations of to distribute, or to facilitate the manu- ecgonine or their salts have been re- facturing, compounding, processing, moved; delivering, importing, or exporting of (2) Cocaine, its salts, optical and geo- any controlled substance. metric isomers, and salts of isomers; (i) Evidence that possession of quan- (3) Ecgonine, its derivatives, their tities of a controlled substance is for salts, isomers, and salts of isomers; or other than personal use may include, (4) Any compound, mixture, or prepa- for example: ration that contains any quantity of (A) Evidence, such as drug scales, any of the substances referred to in drug distribution paraphernalia, drug (ii)(B)(1) through (ii)(B)(3) of this defi- records, drug packaging material, nition; method of drug packaging, drug ‘‘cut- (C) One-tenth gram of a mixture or ting’’ agents and other equipment, that substance described in (ii)(B) of this indicates an intent to process, package, definition that contains cocaine base; or distribute a controlled substance; (D) One-tenth gram of a mixture or (B) Information from reliable sources substance containing a detectable indicating possession of a controlled amount of phencyclidine (PCP); substance with intent to distribute; (E) Five hundred micrograms of ly- (C) The arrest or conviction record of sergic acid diethylamide (LSD); the person or persons in actual or constructive possession of the controlled (F) One ounce of a mixture or sub- substance for offenses under Federal, stance containing a detectable amount state, or local law that indicates an in- of marijuana; tent to distribute a controlled sub- (G) One gram of methamphetamine, stance; its salts, isomers, and salts of its iso- (D) Circumstances or reliable infor- mers, or one gram of a mixture or sub- mation indicating that the controlled stance containing a detectable amount substance is related to large amounts of methamphetamine, its salts, iso- of cash or any amount of prerecorded mers, or salts of its isomers. Government funds; (iii) The possession of a narcotic, a (E) Circumstances or reliable infor- depressant, a stimulant, a hallucinogen mation indicating that the controlled or a cannabis-controlled substance will substance is a sample intended for dis- be considered in excess of personal use tribution in anticipation of a trans- quantities if the dosage unit amount action involving large quantities, or is possessed provides the same or greater part of a larger delivery; equivalent efficacy as described in (F) Statements by the possessor, or (ii)(B) of this definition. otherwise attributable to the pos- (6) Property means property subject sessor, including statements of con- to forfeiture under 21 U.S.C. 881(a)(4), spirators, that indicate possession with (6), or (7); 19 U.S.C. 1595a; or 49 U.S.C. intent to distribute; or 80303. (G) The fact that the controlled sub- (7) Seizing agency means the Federal stance was recovered from sweepings. agency that has seized the property or (ii) Possession of a controlled sub- adopted the seizure of another agency stance shall be presumed to be for per- and has the responsibility for adminis- sonal use when there are no indicia of tratively forfeiting the property; illicit drug trafficking or distribution (8) Statutory rights or defenses to the —such as, but not limited to, the fac- forfeiture means all legal and equitable tors listed above—and the amounts do rights and remedies available to a not exceed the following quantities: claimant of property seized for for- (A) One gram of a mixture or sub- feiture. stance containing a detectable amount (c) Petition for expedited release in an of heroin; administrative forfeiture proceeding. (1)

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Where property is seized for adminis- tion Service within 20 days from the trative forfeiture involving controlled date of the first publication of the no- substances in personal use quantities, tice of seizure in ordered to be consid- the owner may petition the Postal In- ered by the Postal Inspection Service. spection Service for expedited release The petition must be executed and of the property. sworn to by the owner, and both the (2) Where property described in para- envelope and the request must be clear- graph (c)(1) of this section is a com- ly marked ‘‘PETITION FOR EXPE- mercial fishing industry vessel pro- DITED RELEASE.’’ Such petition shall ceeding to or from a fishing area or in- be filed with the appropriate office or termediate port of call or actually en- official identified in the personal writ- gaged in fishing operations, which ten notice and the publication notice. would be subject to seizure for adminis- (6) The petition shall include the fol- trative forfeiture for a violation of law lowing: involving controlled substances in per- (i) A complete description of the sonal use quantities, a summons to ap- property, including identification num- pear shall be issued in lieu of a phys- bers, if any, and the date and place of ical seizure. The vessel shall report to seizure; the port designated in the summons. (ii) The petitioner’s interest in the The Postal Inspection Service shall be property, which shall be supported by authorized to effect administrative for- title documentation, bills of sale, con- feiture as if the vessel had been phys- tracts, mortgages, or other satisfac- ically seized. Upon answering the sum- tory documentary evidence; and mons to appear on or prior to the last (iii) A statement of the facts and cir- reporting date specified in the sum- cumstances, to be established by satis- mons, the owner of the vessel may file factory proof, relied upon by the peti- a petition for expedited release pursu- tioner to justify expedited release of ant to paragraph (c)(1) of this section, the seized property. and the provisions of paragraph (c)(1) (d) Ruling on petition for expedited re- and other provisions in this section lease in an administrative forfeiture pro- pertaining to a petition for expedited ceeding. (1) If a final administrative de- release shall apply as if the vessel had termination of the case, without regard been physically seized. to the provisions of this section, is (3) The owner filing the petition for made within 21 days of the seizure, the expedited release shall establish the Postal Inspection Service need take no following: further action under this section on a (i) The owner has a valid, good faith petition for expedited release received interest in the seized property as owner pursuant to paragraph (c) of this sec- or otherwise; tion. (ii) The owner reasonably attempted (2) If no such final administrative de- to ascertain the use of the property in termination is made within 21 days of a normal and customary manner; and the seizure, the following procedure (iii) The owner did not know of or shall apply. The Postal Inspection consent to the illegal use of the prop- Service shall, within 20 days after the erty, or in the event that the owner receipt of the petition for expedited re- knew or should have known of the ille- lease, determine whether the petition gal use, the owner did what reasonably filed by the owner has established the could be expected to prevent the viola- factors listed in paragraph (c)(3) of this tion. section and: (4) In addition to those factors listed (i) If the Postal Inspection Service in paragraph (c)(3) of this section, if an determines that those factors have owner can demonstrate that the owner been established, it shall terminate the has other statutory rights or defenses administrative proceedings and return that would cause the owner to prevail the property to the owner (or in the on the issue of forfeiture, such factors case of a commercial fishing industry shall also be considered in ruling on vessel for which a summons has been the petition for expedited release. issued shall dismiss the summons), ex- (5) A petition for expedited release cept where it is evidence of a violation must be received by the Postal Inspec- of law; or

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(ii) If the Postal Inspection Service procedures for Postal Inspection Serv- determines that those factors have not ice officials to follow when considering been established, the agency shall pro- remission or mitigation of administra- ceed with the administrative for- tive forfeitures under the jurisdiction feiture. of the Postal Inspection Service. The (e) Posting of substitute monetary purpose of these regulations is to pro- amount in an administrative forfeiture vide a basis for the partial or total re- proceeding. (1) Where property is seized mission of forfeiture for individuals for administrative forfeiture involving who have an interest in the forfeited controlled substances in personal use property but who did not participate quantities, the owner may obtain re- in, or have knowledge of, the conduct lease of the property by posting a sub- that resulted in the property being substitute monetary amount with the ject to forfeiture and, where required, Postal Inspection Service to be held took all reasonable steps under the cir- subject to forfeiture proceedings in cumstances to ensure that such prop- place of the seized property to be re- erty would not be used, acquired, or leased. The property will be released to disposed of contrary to law. Addition- the owner upon the payment of an ally, the regulations provide for partial amount equal to the Government-ap- or total mitigation of the forfeiture praised value of the property if the and imposition of alternative condi- property is not evidence of a violation tions in appropriate circumstances. of law and has no design or other char- (2) Authority to grant remission and acteristics that particularly suit it for mitigation. (i) Remission and mitigation use in illegal activities. This payment functions in administrative forfeitures must be in the form of a traveler’s check, a money order, a cashier’s under the jurisdiction of the Postal In- check, or an irrevocable letter of credit spection Service are performed by the made payable to the Postal Inspection Chief Counsel. Service. A bond in the form of a cash- (ii) Remission and mitigation func- ier’s check will be considered as paid tions in judicial cases are performed by once the check has been accepted for the Criminal Division of the Depart- payment by the financial institution ment of Justice. Within the Criminal that issued the check. Division, authority to grant remission (2) If a substitute monetary amount and mitigation is delegated to the is posted and the property is adminis- Chief, Asset Forfeiture and Money tratively forfeited, the Postal Inspec- Laundering Section. tion Service will forfeit the substitute (iii) The powers and responsibilities amount in lieu of the property. delegated by the regulations in this (f) Notice provisions. At the time of section may be re-delegated to attor- seizure of property defined in para- neys or managers working under the graph (b)(6) of this section for viola- supervision of the Chief Counsel. tions involving the possession of per- (3) Scope. This section governs any sonal use quantities of a controlled petition for remission filed with the substance, the Postal Inspection Serv- Postal Inspection Service and super- ice must provide written notice to the sedes any Postal Service regulation possessor of the property specifying the governing petitions for remission, to procedures for filing of a petition for the extent such regulation is incon- expedited release and for the posting of sistent with this section. a substitute monetary bond as set (4) Applicability. The time periods and forth in section 6079 of the Anti-Drug internal requirements established in Abuse Act of 1988 and implementing this section are designed to guide the regulations. orderly administration of the remis- [77 FR 25600, May 1, 2012] sion and mitigation process and are not intended to create rights or entitle- § 233.9 Regulations governing remis- ments in favor of individuals seeking sion or mitigation of administra- remission or mitigation. The regula- tive, civil, and criminal forfeitures. tions will apply to all forfeiture ac- (a) Purpose, authority, and scope—(1) tions commenced on or after May 1, Purpose. This section sets forth the 2012.

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(b) Definitions. As used in this sec- (ii) Was created as a result of an ex- tion: change of money, goods, or services; (1) Administrative forfeiture means the and process by which property may be for- (iii) Is perfected against the specific feited by the Postal Inspection Service property forfeited for which remission rather than through judicial pro- or mitigation is sought (e.g., a real es- ceedings. Administrative forfeiture has tate mortgage; a mechanic’s lien). the same meaning as ‘‘nonjudicial for- (11) Net equity means the amount of a feiture,’’ as that term is used in 18 lienholder’s monetary interest in the U.S.C. 983. property subject to forfeiture. Net eq- (2) Appraised value means the esti- uity shall be computed by determining mated market value of an asset at the the amount of unpaid principal and un- time and place of seizure if such or paid interest at the time of seizure, and similar property was freely offered for by adding to that sum unpaid interest sale between a willing seller and a will- calculated from the date of seizure ing buyer. through the last full month prior to (3) Assets Forfeiture Fund means the the date of the decision on the petition. Department of Justice Assets For- Where a rate of interest is set forth in feiture Fund, Department of the Treas- a security agreement, the rate of inter- ury Assets Forfeiture Fund, or the est to be used in this computation will Postal Service’s Assets Forfeiture be the annual percentage rate so speci- Fund, depending upon the identity of fied in the security agreement that is the seizing agency. the basis of the lienholder’s interest. In (4) Attorney General means the Attor- this computation, however, there shall ney General of the United States or be no allowances for attorneys’ fees, that official’s designee. accelerated or enhanced interest (5) Beneficial owner means a person charges, amounts set by contract as with actual use of, as well as an inter- damages, unearned extended warranty est in, the property subject to for- fees, insurance, service contract feiture. charges incurred after the date of sei- (6) Chief, Asset Forfeiture and Money zure, allowances for dealer’s reserve, or Laundering Section, and Chief, refer to any other similar charges. the Chief of the Asset Forfeiture and (12) Nonjudicial forfeiture has the Money Laundering Section, Criminal same meaning as administrative for- Division, United States Department of feiture as defined in this section. Justice. (13) Owner means the person in who (7) General creditor means one whose primary title is vested or whose inter- claim or debt is not secured by a spe- est is manifested by the actual and cific right to obtain satisfaction beneficial use of the property, even against the particular property subject though the title is vested in another. A to forfeiture. victim of an offense, as defined in para- (8) Judgment creditor means one who graph (b)(22) of this section, may also has obtained a judgment against the be an owner if that person has a debtor but has not yet received full present legally cognizable ownership satisfaction of the judgment. interest in the property forfeited. A (9) Judicial forfeiture means either a nominal owner of property will not be civil or a criminal proceeding in a treated as its true owner if that person United States District Court that may is not its beneficial owner. result in a final judgment and order of (14) Person means an individual, part- forfeiture. nership, corporation, joint business en- (10) Lienholder means a creditor terprise, estate, or other legal entity whose claim or debt is secured by a capable of owning property. specific right to obtain satisfaction (15) Petition means a petition for re- against the particular property subject mission or mitigation of forfeiture to forfeiture. A lien creditor qualifies under the regulations in this part. This as a lienholder if the lien: definition includes a petition for res- (i) Was established by operation of toration of the proceeds of sale of for- law or contract; feited property and a petition for the

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value of the forfeited property placed underlying a forfeiture. A drug user is into official use. not considered a victim of a drug traf- (16) Petitioner means the person ap- ficking offense under this definition. A plying for remission, mitigation, res- victim does not include one who ac- toration of the proceeds of sale, or for quires a right to sue the perpetrator of the appraised value of forfeited prop- the criminal offense for any loss by as- erty, under this part. A petitioner may signment, subrogation, inheritance, or be an owner as defined in paragraph otherwise from the actual victim, un- (b)(13) of this section, a lienholder as less that person has acquired an actual defined in paragraph (b)(10), or a victim ownership interest in the forfeited as defined in paragraph (b)(22), subject property; provided however, that if a to the limitations of paragraph (h) of victim has received compensation from this section. insurance or any other source with re- (17) Property means real or personal spect to a pecuniary loss, remission property of any kind capable of being may be granted to the third party who owned or possessed. provided compensation, up to the (18) Record means a series of arrests amount of the victim’s pecuniary loss for related crimes, unless the arrestee was acquitted or the charges were dis- as defined in paragraph (h)(3) of this missed for lack of evidence, a convic- section. tion for a related crime or completion (24) Violator means the person whose of sentence within 10 years of the ac- use or acquisition of the property in quisition of the property subject to for- violation of the law subjected such feiture, or two convictions for a related property to seizure for forfeiture. crime at any time in the past. (c) Petitions in administrative forfeiture (19) Related crime as used in para- cases. (1) Notice of seizure. The notice of graphs (b)(18) and (f) of this section seizure and intent to forfeit the prop- means any crime similar in nature to erty shall advise any persons who may that which gives rise to the seizure of have a present ownership interest in property for forfeiture. For example, the property to submit their petitions where property is seized for a violation for remission or mitigation within 30 of the Federal laws relating to drugs, a days of the date they receive the notice related crime would be any offense in- in order to facilitate processing. Peti- volving a violation of the Federal laws tions shall be considered any time after relating to drugs, or the laws of any notice until the property has been for- state or political subdivision thereof feited, except in cases involving peti- relating to drugs. tions to restore the proceeds from the (20) Related offense as used in para- sale of forfeited property. A notice of graph (h) of this section means: seizure shall include the Ruling Offi- (i) Any predicate offense charged in a cial, the mailing and street address of Federal Racketeer Influenced and Cor- the official to whom petitions should rupt Organizations Act (RICO) count be sent, and an asset identifier number. for which forfeiture was ordered; or (2) Persons who may file. (i) A petition (ii) An offense committed as part of the same scheme or design, or pursuant for remission or mitigation must be to the same conspiracy, as was in- filed by a petitioner as defined in para- volved in the offense for which for- graph (b)(16) of this section, or as pre- feiture was ordered. scribed in paragraph (i)(7) and (8) of (21) Ruling Official means any official this section. A person or person acting to whom decision making authority on their behalf may not file a petition has been delegated pursuant to para- if, after notice or knowledge of the fact graph (a)(2) of this section. that a warrant or process has been (22) Seizing agency means any Federal issued for his apprehension, in order to agency that seized the property or avoid criminal prosecution the person: adopted the seizure of another agency (A) Purposely leaves the jurisdiction for Federal forfeiture. of the United States; (23) Victim means a person who has (B) Declines to enter or reenter the incurred a pecuniary loss as a direct re- United States to submit to its jurisdic- sult of the commission of the offense tion; or

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(C) Otherwise evades the jurisdiction tice of seizure and shall be sworn to by of the court in which a criminal matter the petitioner or by the petitioner’s at- is pending against the person. torney upon information and belief, (ii) Paragraph (c)(2)(i)(A) of this sec- supported by the client’s sworn notice tion applies to a petition filed by a cor- of representation pursuant to 28 U.S.C. poration if any majority shareholder, 1746, as set out in paragraph (i)(7). or individual filing the claim on behalf (ii) If the notice of seizure does not of the corporation: provide an official address, the petition (A) Purposely leaves the jurisdiction shall be addressed to the Asset For- of the United States; feiture Unit at the following address: (B) Declines to enter or reenter the Asset Forfeiture Unit, Criminal Inves- United States to submit to its jurisdic- tigations, U.S. Postal Inspection Serv- tion; or ice, P.O. Box 44373, Washington, DC (C) Otherwise evades the jurisdiction 20026–4373. of the court in which a criminal case is pending against the person. (iii) Submission by facsimile or other (3) Contents of petition. (i) All peti- electronic means will not be accepted. tions must include the following infor- (6) Agency investigation. Upon receipt mation in clear and concise terms: of a petition, the Postal Inspection (A) The name, address, and social se- Service shall investigate the merits of curity or other taxpayer identification the petition and prepare a written re- number of the person claiming an in- port containing the results of that interest in the seized property who is vestigation. This report shall be sub- seeking remission or mitigation; mitted to the Ruling Official for review (B) The name of the seizing agency, and consideration. the asset identifier number, and the (7) Ruling. Upon receipt of the peti- date and place of seizure; tion and the agency report, the Ruling (C) A complete description of the Official for the Postal Inspection Serv- property, including make, model, and ice shall review the petition and the re- serial numbers, if any; and port, if any, and shall rule on the mer- (D) A description of the petitioner’s its of the petition. No hearing shall be interest in the property as owner, held. lienholder, or otherwise, supported by (8) Petitions granted. If the Ruling Of- original or certified bills of sale, con- ficial grants a remission or mitigation tracts, deeds, mortgages, or other doc- of the forfeiture, a copy of the decision umentary evidence. Such documenta- shall be mailed to the petitioner or, if tion includes evidence establishing the represented by an attorney, to the peti- source of funds for seized currency or tioner’s attorney. A copy shall also be the source of funds used to purchase sent to the U.S. Marshals Service, or the seized asset. other property custodian. The written (ii) Any factual recitation or documentation of any type in a petition decision shall include the terms and must be supported by a declaration conditions, if any, upon which the re- under penalty of perjury that meets mission or mitigation is granted, and the requirements of 28 U.S.C. 1746. the procedures the petitioner must fol- (4) Releases. In addition to the con- low to obtain release of the property or tents of the petition for remission or the monetary interest therein. mitigation set forth in paragraph (c)(3) (9) Petitions denied. If the Ruling Offi- of this section, upon request, the peti- cial denies a petition, a copy of the de- tioner shall also furnish the agency cision shall be mailed to the petitioner with an instrument executed by the ti- or, if represented by an attorney, to tled or registered owner and any other the petitioner’s attorney of record. A known claimant of an interest in the copy of the decision shall also be sent property releasing interest in such to the U.S. Marshals Service, or other property. property custodian. The decision shall (5) Filing a petition. (i) A petition for specify the reason that the petition remission or mitigation subject to ad- was denied. The decision shall advise ministrative forfeiture is to be sent to the petitioner that a request for recon- the official address provided in the no- sideration of the denial of the petition

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may be submitted to the Ruling Offi- law, except in cases involving petitions cial in accordance with paragraph to restore property. A notice of seizure (c)(10) of this section. shall include the title of the Ruling Of- (10) Request for reconsideration. (i) A ficial and the mailing and street ad- request for reconsideration of the de- dress of the official to whom petitions nial of the petition shall be considered should be sent, the name of the agency if: seizing the property, an asset identifier (A) It is postmarked or received by number, and the district court docket the office of the Ruling Official within number. 10 days from the receipt of the notice (2) Persons who may file. A petition of denial of the petition by the peti- for remission or mitigation must be tioner; and filed by a petitioner as defined in para- (B) The request is based on informa- graph (b)(16) of this section, or as pre- tion or evidence not previously consid- scribed in paragraph (i)(7) and (8) of ered that is material to the basis for this section. the denial or presents a basis clearly (3) Contents of petition. (i) All peti- demonstrating that the denial was er- tions must include the following infor- roneous. mation in clear and concise terms: (ii) In no event shall a request for re- (A) The name, address, and Social Se- consideration be decided by the same curity or other taxpayer identification Ruling Official who ruled on the origi- number of the person claiming an in- nal petition. terest in the seized property who is (iii) Only one request for reconsider- seeking remission or mitigation; ation of a denial of a petition shall be (B) The name of the seizing agency, considered. the asset identifier number, and the (11) Restoration of proceeds from sale. date and place of seizure; (i) A petition for restoration of the proceeds from the sale of forfeited prop- (C) The district court docket number; erty, or for the appraised value of for- (D) A complete description of the feited property when the forfeited prop- property, including the address or legal erty has been retained by or delivered description of real property, and make, to a Government agency for official model, and serial numbers of personal use, may be submitted by an owner or property, if any; and lienholder in cases in which the peti- (E) A description of the petitioner’s tioner: interest in the property as owner, (A) Did not know of the seizure prior lienholder, or otherwise, supported by to the entry of a declaration of for- original or certified bills of sale, con- feiture; and tracts, mortgages, deeds, or other doc- (B) Could not reasonably have known umentary evidence. of the seizure prior to the entry of a (ii) Any factual recitation or docu- declaration of forfeiture. mentation of any type in a petition (ii) Such a petition shall be sub- must be supported by a declaration mitted pursuant to paragraphs (c)(2) under penalty of perjury that meets through (c)(5) of this section within 90 the requirements of 28 U.S.C. 1746. days of the date the property is sold or (4) Releases. In addition to the con- otherwise disposed of. tent of the petition for remission or (d) Petitions in judicial forfeiture mitigation set forth in paragraph (d)(3) cases—(1) Notice of seizure. The notice of of this section, the petitioner, upon re- seizure and intent to forfeit the prop- quest, also shall furnish the agency erty shall advise any persons who may with an instrument executed by the ti- have a present ownership interest in tled or registered owner and any other the property to submit their petitions known claimant of an interest in the for remission or mitigation within 30 property releasing the interest in such days of the date they receive the notice property. in order to facilitate processing. Peti- (5) Filing petition with Department of tions shall be considered any time after Justice. A petition for remission or notice until such time as the forfeited mitigation of a judicial forfeiture shall property is placed in official use, sold, be addressed to the Attorney General; or otherwise disposed of according to shall be sworn to by the petitioner or

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by the petitioner’s attorney upon infor- and shall coordinate disposition of the mation and belief, supported by the cli- property with that office and the U.S. ent’s sworn notice of representation Marshals Service or other property pursuant to 28 U.S.C. 1746, as set forth custodian. in paragraph (i)(7) of this section; and (9) Petitions denied. If the Chief denies shall be submitted to the U.S. Attor- a petition, a copy of that decision shall ney for the district in which the judi- be mailed to the petitioner (or, if rep- cial forfeiture proceedings are brought. resented by an attorney, to the peti- (6) Agency investigation and rec- tioner’s attorney of record), and mailed ommendation; U.S. Attorney’s rec- or transmitted electronically to the ap- ommendation. Upon receipt of a peti- propriate U.S. Attorney, the U.S. Mar- tion, the U.S. Attorney shall direct the shals Service or other property custo- seizing agency to investigate the mer- dian, and the seizing agency. The deci- its of the petition based on the infor- sion shall specify the reason that the mation provided by the petitioner and petition was denied. The decision shall the totality of the agency’s investigation of the underlying basis for for- advise the petitioner that a request for feiture. The agency shall submit to the reconsideration of the denial of the pe- U.S. Attorney a report of its investiga- tition may be submitted to the Chief at tion and its recommendation on wheth- the address provided in the decision, in er the petition should be granted or de- accordance with paragraph (d)(10) of nied. Upon receipt of the agency’s re- this section. port and recommendation, the U.S. At- (10) Request for reconsideration. (i) A torney shall forward to the Chief, Asset request for reconsideration of the de- Forfeiture and Money Laundering Sec- nial shall be considered if: tion, the petition, the seizing agency’s (A) It is postmarked or received by report and recommendation, and the the Asset Forfeiture and Money Laun- U.S. Attorney’s recommendation on dering Section at the address contained whether the petition should be granted in the decision denying the petition or denied. within 10 days from the receipt of the (7) Ruling. The Chief shall rule on the notice of denial of the petition by the petition. No hearing shall be held. The petitioner; Chief shall not rule on any petition for (B) A copy of the request is also re- remission if such remission was pre- ceived by the appropriate U.S. Attor- viously denied by the administrative ney within 10 days of the receipt of the agency pursuant to paragraph (c) of denial by the petitioner; and this section. (C) The request is based on informa- (8) Petitions granted. If the Chief tion or evidence not previously consid- grants a remission or mitigates the for- ered that is material to the basis for feiture, the Chief shall mail a copy of the denial or presents a basis clearly the decision to the petitioner (or, if demonstrating that the denial was er- represented by an attorney, to the peti- roneous. tioner’s attorney), and shall mail or (ii) In no event shall a request for re- transmit electronically a copy of the decision to the appropriate U.S. Attor- consideration be decided by the Ruling ney, the U.S. Marshals Service or other Official who ruled on the original peti- property custodian, and the seizing tion. agency. The written decision shall in- (iii) Only one request for reconsider- clude the terms and conditions, if any, ation of a denial of a petition shall be upon which the remission or mitiga- considered. tion is granted and the procedures the (iv) Upon receipt of the request for petitioner must follow to obtain re- reconsideration of the denial of a peti- lease of the property or the monetary tion, disposition of the property will be interest therein. The Chief shall advise delayed pending notice of the decision the petitioner or the petitioner’s attor- at the request of the Chief. lf the re- ney to consult with the U.S. Attorney quest for reconsideration is not re- as to such terms and conditions. The ceived within the prescribed period, the U.S. Attorney shall confer with the U.S. Marshals Service may dispose of seizing agency regarding the release the property.

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(11) Restoration of proceeds from sale. proceeds or appraised value of forfeited (i) A petition for restoration of the pro- property, or the reconsideration of a ceeds from the sale of forfeited prop- denial of any such petition shall be erty, or for the appraised value of for- grounds for denial of such petition and feited property when the forfeited prop- possible prosecution for the filing of erty has been retained by or delivered false statements. to a Government agency for official (2) Mitigation. (i) The Ruling Official use, may be submitted by an owner or may grant mitigation to a party not lienholder in cases in which the peti- involved in the commission of the of- tioner: fense underlying forfeiture: (A) Did not know of the seizure prior (A) Where the petitioner has not met to the entry of a final order of for- the minimum conditions for remission, feiture; and but the Ruling Official finds that some (B) Could not reasonably have known relief should be granted to avoid ex- of the seizure prior to the entry of a treme hardship, and that return of the final order of forfeiture. property combined with imposition of (ii) Such a petition must be sub- monetary or other conditions of miti- mitted pursuant to paragraphs (d)(2) gation in lieu of a complete forfeiture through (d)(5) of this section within 90 will promote the interest of justice and days of the date the property was sold will not diminish the deterrent effect or otherwise disposed of. of the law. Extenuating circumstances (e) Criteria governing administrative justifying such a finding include those and judicial remission and mitigation—(1) circumstances that reduce the respon- Remission. (i) The Ruling Official shall sibility of the petitioner for knowledge not grant remission of a forfeiture un- of the illegal activity, knowledge of less the petitioner establishes that the the criminal record of a user of the petitioner has a valid, good faith, and property, or failure to take reasonable legally cognizable interest in the seized steps to prevent the illegal use or ac- property as owner or lienholder as de- quisition by another for some reason, fined in this part and is an innocent such as a reasonable fear of reprisal; or owner within the meaning of 18 U.S.C. (B) Where the minimum standards 983(d)(2)(A) or (d)(3)(A). for remission have been satisfied but (ii) For purposes of this paragraph the overall circumstances are such (e), the knowledge and responsibilities that, in the opinion of the Ruling Offi- of a petitioner’s representative, agent, cial, complete relief is not warranted. or employee are imputed to the peti- (ii) The Ruling Official may as a mat- tioner where the representative, agent, ter of discretion grant mitigation to a or employee was acting in the course of party involved in the commission of that person’s employment and in fur- the offense underlying the forfeiture therance of the petitioner’s business. where certain mitigating factors exist, (iii) The petitioner has the burden of including, but not limited to: The lack establishing the basis for granting a of a prior record or evidence of similar petition for remission or mitigation of criminal conduct; if the violation does forfeited property, a restoration of pro- not include drug distribution, manufac- ceeds of sale or appraised value of for- turing, or importation, the fact that feited property, or a reconsideration of the violator has taken steps, such as a denial of such a petition. Failure to drug treatment, to prevent further provide information or documents and criminal conduct; the fact that the vio- to submit to interviews, as requested, lation was minimal and was not part of may result in a denial of the petition. a larger criminal scheme; the fact that (iv) The Ruling Official shall presume the violator has cooperated with Fed- a valid forfeiture and shall not consider eral, state, or local investigations re- whether the evidence is sufficient to lating to the criminal conduct under- support the forfeiture. lying the forfeiture; or the fact that (v) Willful, materially false state- complete forfeiture of an asset is not ments or information made or fur- necessary to achieve the legitimate nished by the petitioner in support of a purposes of forfeiture. petition for remission or mitigation of (iii) Mitigation may take the form of forfeited property, the restoration of a monetary condition or the imposition

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of other conditions relating to the con- vious owner for the purpose of circum- tinued use of the property, and the re- venting seizure, forfeiture, or the regu- turn of the property, in addition to the lations in this part, shall be denied. A imposition of any other costs that petition by a person who purchases or would be chargeable as a condition to owns property for another who has a remission. This monetary condition is record for related crimes as defined in considered as an item of cost payable paragraph (b)(19), or a petition by a by the petitioner, and shall be depos- lienholder who knows or has reason to ited into the Postal Inspection Serv- believe that the purchaser or owner of ice’s Fund as an amount realized from record is not the real purchaser or forfeiture in accordance with the appli- owner, shall be denied unless both the cable statute. If the petitioner fails to purchaser of record and the real pur- accept the Ruling Official’s mitigation chaser or owner meet the requirements decision or any of its conditions, or of paragraph (e) of this section. fails to pay the monetary amount (6) Judgment creditors. (i) A judgment within 20 days of the receipt of the de- creditor will be recognized as a cision, the property shall be sold, and lienholder if: the monetary amount imposed and (A) The judgment was duly recorded other costs chargeable as a condition before the seizure of the property for to mitigation shall be subtracted from forfeiture; the proceeds of the sale before trans- (B) Under applicable state or other mitting the remainder to the peti- local law, the judgment constitutes a tioner. valid lien on the property that at- (f) Special rules for specific petitioners— tached to it before the seizure of the (1) General creditors. A general creditor property for forfeiture; and may not be granted remission or miti- (C) The petitioner had no knowledge gation of forfeiture unless that person of the commission of any act or acts otherwise qualifies as petitioner under giving rise to the forfeiture at the time this part. the judgment became a lien on the for- (2) Rival claimants. If the beneficial feited property. owner of the forfeited property and the (ii) A judgment creditor will not be owner of a security interest in the recognized as a lienholder if the prop- same property each files a petition, and erty in question is not property of if both petitions are found to be meri- which the judgment debtor is entitled torious, the claims of the beneficial to claim ownership under applicable owner shall take precedence. state or other local law (e.g., stolen (3) Voluntary bailments. A petitioner property). A judgment creditor is enti- who allows another to use the peti- tled under this part to no more than tioner’s property without cost, and who the amount of the judgment, exclusive is not in the business of lending money of any interest, costs, or other fees in- secured by property or of leasing or cluding attorney’s fees associated with renting property for profit, shall be the action that led to the judgment or granted remission or mitigation of for- its collection. feiture in accordance with the provi- (iii) A judgment creditor’s lien must sions of paragraph (e) of this section. be registered in the district where the (4) Lessors. A person engaged in the property is located if the judgment was business of leasing or renting real or obtained outside the district. personal property on a long-term basis (g) Terms and conditions of remission with the right to sublease shall not be and mitigation—(1) Owners. (i) An own- entitled to remission or mitigation of a er’s interest in property that has been forfeiture of such property unless the forfeited is represented by the property lessor can demonstrate compliance itself or by a monetary interest equiva- with all the requirements of paragraph lent to that interest at the time of sei- (e) of this section. zure. Whether the property or a mone- (5) Straw owners. A petition by any tary equivalent will be remitted to an person who has acquired a property in- owner shall be determined at the dis- terest recognizable under this part, and cretion of the Ruling Official. who knew or had reason to believe that (ii) If a civil judicial forfeiture action the interest was conveyed by the pre- against the property is pending, release

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of the property must await an appro- forward a copy of the decision, a priate court order. memorandum of disposition, and the (iii) Where the Government sells or original releases to the division or field disposes of the property prior to the office responsible for the seizure and grant of the remission, the owner shall custody of the property or, if applica- receive the proceeds of that sale, less ble, to the U.S. Marshals Service, who any costs incurred by the Government shall thereafter release the property to in the sale. The Ruling Official, as a the lienholder; or matter of discretion, may waive the de- (B) Sale of Property and Payment to duction of costs and expenses incident Lienholder. Subject to the provisions of to the forfeiture. paragraph (i)(1) of this section, upon (iv) Where the owner does not comply sale of the property, the lienholder with the conditions imposed upon re- may receive the payment of a mone- lease of the property by the Ruling Of- tary amount up to the sum of the ficial, the property shall be sold. Fol- lienholder’s net equity, less the ex- lowing the sale, the proceeds shall be penses and costs incident to the for- used to pay all costs of the forfeiture feiture and sale of the property, and and disposition of the property, in ad- any other monetary conditions im- dition to any monetary conditions imposed. The Ruling Official, as a matter posed. The remaining balance shall be of discretion, may waive costs and ex- paid to the owner. penses incident to the forfeiture. (2) Lienholders. (i) When the forfeited (iii) If the lienholder does not notify property is to be retained for official the Ruling Official of the selection of use or transferred to a state or local one of the two options set forth in this law enforcement agency or foreign gov- paragraph (g)(2)(ii) within 20 days of ernment pursuant to law, and remis- the receipt of notification, the Ruling sion or mitigation has been granted to Official shall direct the division or a lienholder, the recipient of the prop- field office responsible for the seizure erty shall assure that: or custody, or if applicable, the U.S. (A) In the case of remission, the lien Marshals Service, to sell the property is satisfied as determined through the and pay the lienholder an amount up to petition process; or the net equity, less the costs and ex- (B) In the case of mitigation, an penses incurred incident to the for- amount equal to the net equity, less feiture and sale, and any monetary any monetary conditions imposed, is conditions imposed. In the event a paid to the lienholder prior to the re- lienholder subsequently receives a pay- lease of the property to the recipient ment of any kind on the debt owed for agency of foreign government. which he or she received payment as a (ii) When the forfeited property is not result of the granting of remission or retained for official use or transferred mitigation, the lienholder shall reim- to another agency or foreign govern- burse the Postal Service Forfeiture ment pursuant to law, the lienholder Fund to the extent of the payment re- shall be notified by the Ruling Official ceived. of the right to select either of the fol- (iv) Where the lienholder does not lowing alternatives: comply with the conditions imposed (A) Return of Property. The lienholder upon the release of the property, the may obtain possession of the property property shall be sold after forfeiture. after paying the United States, From the proceeds of the sale, all costs through the Ruling Official, the costs incident to the forfeiture and sale shall and expenses incident to the forfeiture, first be deducted, and the balance up to the amount, if any, by which the ap- the net equity, less any monetary con- praised value of the property exceeds ditions, shall be paid to the lienholder. the lienholder’s net equity in the prop- (h) Remission procedures for victims. erty, and any amount specified in the This section applies to victims of an of- Ruling Official’s decision as a condi- fense underlying the forfeiture of prop- tion to remit the property. The Ruling erty, or of a related offense, who do not Official, as a matter of discretion, may have a present ownership interest in waive costs and expenses incident to the forfeited property (or, in the case the forfeiture. The Ruling Official shall of multiple victims of an offense, who

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do not have a present ownership inter- (iii) The victim did not knowingly est in the forfeited property that is contribute to, participate in, benefit clearly superior to that of other peti- from, or act in a willfully blind manner tioner victims). This section applies towards commission of the offense, or only with respect to property forfeited related offense, that was the under- pursuant to statutes that explicitly au- lying basis of the forfeiture; thorize restoration or remission of for- (iv) The victim has not in fact been feited property to victims. A victim re- compensated for the wrongful loss of questing remission under this section the property by the perpetrator or oth- may concurrently request remission as ers; and an owner, pursuant to the regulations (v) The victim does not have recourse set forth in paragraphs (c), (d), and (g) reasonably available to other assets of this section. The claims of victims from which to obtain compensation for granted remission as both an owner the wrongful loss of the property. and victim shall, like other owners, (3) Pecuniary loss. The amount of the have priority over the claims of any pecuniary loss suffered by a victim for non-owner victims whose claims are which remission may be granted is lim- recognized under this section. ited to the fair market value of the (1) Remission procedure for victims—(i) property of which the victim was de- Persons seeking remission Where to file. prived as of the date of the occurrence as victims shall file petitions for re- of the loss. No allowance shall be made mission with the appropriate deciding for interest forgone or for collateral official as described in paragraph (c)(5) expenses incurred to recover lost prop- (administrative forfeiture) or (d)(5) (ju- erty or to seek other recompense. dicial forfeiture) of this section. (4) A tort associated with ille- (ii) Time of decision. The Ruling Offi- Torts. cial or that person’s designee as de- gal activity that formed the basis for scribed in paragraph (a)(2) of this sec- the forfeiture shall not be a basis for tion may consider petitions filed by remission, unless it constitutes the il- persons claiming eligibility for remis- legal activity itself, nor shall remission as victims at any time prior to the sion be granted for physical injuries to disposal of the forfeited property in ac- a petitioner or for damage to a peti- cordance with law. tioner’s property. (iii) Request for reconsideration. Per- (5) Denial of petition. As a matter of sons denied remission under this sec- discretion, the Ruling Official may de- tion may request reconsideration of cline to grant remission where: the denial, in accordance with para- (i) There is substantial difficulty in graph (c)(10) (administrative forfeiture) calculating the pecuniary loss incurred or (d)(10) (judicial forfeiture) of this by the victim or victims; section. (ii) The amount of the remission, if (2) Qualification to file. A victim, as granted, would be small compared with defined in paragraph (b)(22) of this sec- the amount of expenses incurred by the tion, may be granted remission, if in Government in determining whether to addition to complying with the other grant remission; or applicable provisions of this paragraph (iii) The total number of victims is (h), the victim satisfactorily dem- large and the monetary amount of the onstrates that: remission so small as to make its (i) A pecuniary loss of a specific granting impractical. amount has been directly caused by the (6) Pro rata basis. In granting remis- criminal offense, or related offense, sion to multiple victims pursuant to that was the underlying basis for the this section, the Ruling Official should forfeiture, and that the loss is sup- generally grant remission on a pro rata ported by documentary evidence in- basis to recognized victims when peti- cluding invoices and receipts; tions cannot be granted in full due to (ii) The pecuniary loss is the direct the limited value of the forfeited prop- result of the illegal acts and is not the erty. However, the Ruling Official may result of otherwise lawful acts that consider, among others, the following were committed in the course of a factors in establishing appropriate pri- criminal offense; orities in individual cases:

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(i) The specificity and reliability of property shall be deducted from the the evidence establishing a loss; amount available for remission or (ii) The fact that a particular victim mitigation. Such costs include, but are is suffering an extreme financial hard- not limited to, court costs, storage ship; costs, brokerage and other sales-re- (iii) The fact that a particular victim lated costs, the amount of any liens has cooperated with the Government in and associated costs paid by the Gov- the investigation related to the for- ernment on the property, costs in- feiture or to a related persecution or curred in paying the ordinary and nec- civil action; and essary expenses of a business seized for (iv) In the case of petitions filed by forfeiture, awards for information as multiple victims of related offenses, authorized by statute, expenses of the fact that a particular victim is a trustees or other assistants pursuant victim of the offense underlying the to paragraph (i)(3) of this section, in- forfeiture. vestigative or prosecutorial costs spe- (7) Reimbursement. Any petitioner cially incurred incident to the par- granted remission pursuant to this ticular forfeiture, and costs incurred part shall reimburse the Postal Service incident to the processing of petitions Forfeiture Fund for the amount re- for remission or mitigation. The received, to the extent the individual maining balance shall be available for later receives compensation for the remission or mitigation. The Ruling loss of property from any other source. Official shall direct the distribution of The petitioner shall surrender the re- the remaining balance in the following imbursement upon payment from any order or priority, except that the Rul- secondary source. ing Official may exercise discretion in (8) Claims of financial institution regu- determining the priority between peti- latory agencies. In cases involving prop- tioners belonging to classes described erty forfeitable under 18 U.S.C. in paragraph (i)(1)(iii) and (iv) of this 981(a)(1)(C) or (D), the Ruling Official section in exceptional circumstances: may decline to grant a petition filed by (i) Owners; a petitioner in whole or in part due to (ii) Lienholders; the lack of sufficient forfeitable funds (iii) Federal financial institution reg- to satisfy both the petitioner and ulatory agencies (pursuant to para- claims of the financial institution reg- graph (i)(5) of this section), not consti- ulatory agencies pursuant to 18 U.S.C. tuting owners or lienholders; and 981(e)(3) or (7). Generally, claims of fi- (iv) Victims not constituting owners nancial institution regulatory agencies or lienholders pursuant to paragraph pursuant to 18 U.S.C. 981(e)(3) or (7) (h) of this part. shall take priority over claims of vic- (2) Sale or disposition of property prior tims. to ruling. If forfeited property has been (9) Amount of remission. Consistent sold or otherwise disposed of prior to a with the Assets Forfeiture Fund stat- ruling, the Ruling Official may grant ute (28 U.S.C. 524(c)), the amount of re- relief in the form of a monetary mission shall not exceed the victim’s amount. The amount realized by the share of the net proceeds of the forfeit- sale of property is presumed to be the ures associated with the activity that value of the property. Monetary relief caused the victim’s loss. The calcula- shall not be greater than the appraised tion of net proceeds includes, but is not value of the property at the time of sei- limited to, the deduction of allowable zure and shall not exceed the amount Government expenses and valid third- realized from the sale or other disposi- party claims. tion. The proceeds of the sale shall be (i) Miscellaneous provisions—(1) Pri- distributed as follows: ority of payment. Except where other- (i) Payment of the Government’s ex- wise provided in this part, costs in- penses incurred incident to the for- curred by the Postal Inspection Serv- feiture and sale, including court costs ice, the U.S. Marshals Service, and and storage charges, if any; other agencies participating in the for- (ii) Payment to the petitioner of an feiture that were incident to the for- amount up to that person’s interest in feiture, sale, or other disposition of the the property;

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(iii) Payment to the Postal Service (A) The attorney has the authority to Forfeiture Fund of all other costs and represent the petitioner in this pro- expenses incident to the forfeiture; ceeding; (iv) In the case of victims, payment (B) The petitioner has fully reviewed of any amount up to the amount of the petition; and that person’s loss; and (C) The petition is truthful and accu- (v) Payment of the balance remain- rate in every respect. ing, if any, to the Postal Service For- (ii) Verbal notification of representa- feiture Fund. tion is not acceptable. Responses and (3) Trustees and other assistants. As a notification of rulings shall not be sent matter of discretion, the Ruling Offi- to an attorney claiming to represent a cial, with the approval of the Chief petitioner unless a written notice of Postal Inspector, may use the services representation is filed. No extensions of a trustee, other Government official, of time shall be granted due to delays or appointed contractors to notify po- in submission of the notice of represen- tential petitioners, process petitions, tation. and make recommendations to the Rul- (8) Consolidated petitions. At the dis- ing Official on the distribution of prop- cretion of the Ruling Official in indi- erty to petitioners. The expense for vidual cases, a petition may be filed by such assistance shall be paid out of the one petitioner on behalf of other peti- forfeited funds. tioners, provided the petitions are (4) Other agencies of the United States. based on similar underlying facts, and Where another agency of the United the petitioner who files the petition States is entitled to remission or miti- has written authority to do so on be- gation of forfeited assets because of an half of other petitioners. This author- interest that is recognizable under this ity must be either expressed in docu- part or is eligible for such transfer pur- ments giving the petitioner the author- suant to 18 U.S.C. 981(e)(6), such agency ity to file petitions for remission, or shall request the transfer in writing, in reasonably implied from documents addition to complying with any appli- giving the petitioner express authority cable provisions of paragraphs (c) to file claims or lawsuits related to the through (e) of this section. The deci- course of conduct in question on behalf sion to make such transfer shall be of these petitioners. An insurer or an made in writing by the Ruling Official. administrator of an employee benefit (5) Financial institution regulatory plan, for example, which itself has agencies. A Ruling Official may direct standing to file a petition as a ‘‘vic- the transfer of property under 18 U.S.C. tim’’ within the meaning of paragraph 981(e) to certain Federal financial in- (b)(22) of this section, may also file a stitution regulatory agencies or an en- petition on behalf of its insured or plan tity acting in their behalf, upon receipt beneficiaries for any claims they may of a written request, in lieu of ruling have based on co-payments made to the on a petition for remission or mitiga- perpetrator of the offense underlying tion. the forfeiture, or the perpetrator of a (6) Transfers to foreign governments. A ‘‘related offense’’ within the meaning Ruling Official may decline to grant of paragraph (b)(20), if the authority to remission to any petitioner other than file claims or lawsuits is contained in an owner or lienholder so that forfeited the document or documents estab- assets may be transferred to a foreign lishing the plan. Where such a petition government pursuant to 18 U.S.C. is filed, any amounts granted as remis- 981(i)(1); 19 U.S.C. 1616a(c)(2); or 21 sion must be transferred to the other U.S.C. 881(e)(1)(E). petitioners, not the party filing the pe- (7) Filing by attorneys. (i) A petition tition; although, as a matter of discre- for remission or mitigation may be tion, the Ruling Official may use the filed by a petitioner or by that person’s actual petitioner as an intermediary attorney or legal guardian. If an attor- for transferring the amounts author- ney files on behalf of the petitioner, ized as a remission to the other peti- the petition must include a signed and tioners. sworn statement by the client-petitioner stating that: [77 FR 25602, May 1, 2012]

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§ 233.10 [Reserved] (6) After screening, mail sealed against inspection that presents doubts § 233.11 Mail reasonably suspected of about whether its contents are haz- being dangerous to persons or ardous, that cannot be resolved with- property. out opening, must be reported to the (a) Screening of mail. When the Chief Postal Inspection Service. Such mail Postal Inspector determines that there must be disposed of under instructions is a credible threat that certain mail promptly furnished by the Inspection may contain a bomb, explosives, or Service. other material that would endanger (b) Threatening pieces of mail. Mail, life or property, including firearms sealed or unsealed, reasonably sus- which are not mailable under Section pected of posing an immediate danger C024 of the Domestic Mail Manual, the to life or limb or an immediate and Chief Postal Inspector may, without a substantial danger to property may, without a search warrant, be detained, search warrant or the sender’s or ad- opened, removed from postal custody, dressee’s consent, authorize the screen- and processed or treated, but only to ing of such mail by any means capable the extent necessary to determine and of identifying explosives, nonmailable eliminate the danger and only if a com- firearms, or other dangerous contents plete written and sworn statement of in the mails. The screening must be the detention, opening, removal, or within the limits of this section and treatment, and the circumstances that without opening mail that is sealed prompted it, signed by the person pur- against inspection or revealing the porting to act under this section, is contents of correspondence within mail promptly forwarded to the Chief Postal that is sealed against inspection. The Inspector. screening is conducted according to (c) Reports. Any person purporting to these requirements. act under this section who does not re- (1) Screening of mail authorized by port his or her action to the Chief paragraph (a) of this section must be Postal Inspector under the require- limited to the least quantity of mail ments of this section, or whose action necessary to respond to the threat. is determined after investigation not (2) Such screening must be done in a to have been authorized, is subject to manner that does not avoidably delay disciplinary action or criminal pros- the screened mail. ecution or both. (3) The Chief Postal Inspector may [61 FR 28060, June 4, 1996] authorize screening of mail by postal employees and by persons not em- § 233.12 Civil penalties. ployed by the Postal Service under (a) False representations and lottery or- such instruction that require compli- ders. Under 39 U.S.C. 3005(a)(1)–(3), the ance with this part and protect the se- Postal Service may issue administra- curity of the mail. No information ob- tive orders prohibiting persons from tained from such screening may be dis- using the mail to obtain money closed unless authorized by this part. through false representations or lot- (4) Mail of insufficient weight to pose teries. Persons who evade, attempt to a hazard to air or surface transpor- evade, or fail to comply with an order tation, or to contain firearms which to stop such prohibited practices may are not mailable under Section C024 of be liable to the United States for a the Domestic Mail Manual, and inter- civil penalty under 39 U.S.C. 3012(a). As national transit mail must be excluded adjusted under Public Law 114–74, the from such screening. penalties are as follows: $69,463 for each (5) After screening conducted under mailing less than 50,000 pieces, $138,925 paragraph (a) of this section, mail that for each mailing of 50,000 to $100,000 is reasonably suspected of posing an pieces, and $13,893 for each additional immediate and substantial danger to 10,000 pieces above 100,000 not to exceed life or limb, or an immediate and sub- $2,778,505. stantial danger to property, may be (b) False representation and lottery treated by postal employees as pro- penalties in lieu of or as part of an order. vided in paragraph (b) of this section. In lieu of or as part of an order issued

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under 39 U.S.C. 3005(a)(1)–(3), the Postal into the Treasury of the United States Service may assess a civil penalty pay- on a person who knowingly mails non- able under 39 U.S.C. 3012(c)(1). As ad- mailable hazardous materials or fails justed under Public Law 114–74, the to follow postal laws on mailing haz- penalties are as follows: $34,731 for each ardous materials. As adjusted under mailing that is less than 50,000 pieces, Public Law 114–74, the penalty is at $69,463 for each mailing of 50,000 to least $300, but not more than $119,786 100,000 pieces, and an additional $6,946 for each violation. for each additional 10,000 pieces above [81 FR 42533, June 30, 2016, as amended at 82 100,000 not to exceed $1,389,252. FR 6277, Jan. 19, 2017] (c) Misleading references to the United States Government; Sweepstakes and deceptive mailings. Persons sending cer- PART 235—DEFENSE DEPARTMENT tain deceptive mail matter described in LIAISON 39 U.S.C. 3001(h)–(k), including: (1) Solicitations making false claims Sec. 235.1 Postal Service to the Armed Forces. of Federal Government connection or 235.2 Civil preparedness. approval; (2) Certain solicitations for the pur- § 235.1 Postal Service to the Armed chase of a product or service that may Forces. be obtained without cost from the Fed- (a) Publication 38, Postal Agreement eral Government; with the Department of Defense, de- (3) Solicitations containing improp- fines the Postal Service’s responsibil- erly prepared ‘‘facsimile checks’’; and ities for providing postal service to the (4) Solicitations for ‘‘skill contests’’ Armed Forces. and ‘‘sweepstakes’’ sent to individuals (b) The Chief Inspector is responsible who, in accordance with 39 U.S.C. for military liaison. 3017(d), have requested that such mate- (c) Postal inspectors provide liaison rials not be mailed to them; may be between postmasters and military com- liable to the United States for a civil manders, visit military installations as penalty under 39 U.S.C. 3012(d). As ad- required, and make any necessary rec- justed under Public Law 114–74, this ommendations. penalty is not to exceed $13,893 for each mailing. (39 U.S.C. 401(2), 402, 403, 404, as enacted by (d) Commercial use of lists of persons Pub. L. 91–375, 84 Stat. 719) electing not to receive skill contest or [38 FR 26193, Sept. 9, 1973] sweepstakes mailings. Under 39 U.S.C. 3017(g)(2), the Postal Service may im- § 235.2 Civil preparedness. pose a civil penalty against a person (a) Mission. The prime objective of who provides information for commer- postal emergency preparedness plan- cial use about individuals who, in ac- ning is to maintain or restore essential cordance with 39 U.S.C. 3017(d), have postal service in a national emergency, elected not to receive certain sweep- natural disaster, or disruptive domes- stakes and contest information. As ad- tic crisis. justed under Public Law 114–74, the (b) Emergency Coordinator. The Chief penalty may not exceed $2,778,505 per Inspector is designated Emergency Co- violation. ordinator for the Postal Service. As (e) Reckless mailing of skill contest or Emergency Coordinator, he provides sweepstakes matter. Under 39 U.S.C. general direction and coordination of 3017(h)(1)(A), any promoter who reck- the following programs: lessly mails nonmailable skill contest (1) National Civil Preparedness and or sweepstakes matter may be liable to Defense Mobilization; the United States for a civil penalty (2) Natural Disaster Preparedness; for each mailing to an individual. As (3) Emergency Response to Disrup- adjusted under Public Law 114–74, the tive Domestic Crisis. penalty is $13,893 per violation. (c) Regional Emergency Coordinator. (f) Hazardous material. Under 39 The Chief Inspector may delegate au- U.S.C. 3018(c)(1)(A), the Postal Service thority to Regional Chief Postal In- may impose a civil penalty payable spectors, or others, for the function of

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Regional Emergency Coordinator and Post Office Organization and the general direction and coordination Administration of all such programs within the Postal Regions, as are conducted by him at the National level. PART 241—ESTABLISHMENT CLASSI- (d) Postmaster General emergency line FICATION, AND DISCONTINU- of succession. (1) Deputy Postmaster ANCE General; (2) Senior Assistant Post- master General, Administration; (3) Sec. Senior Assistant Postmaster General, 241.1 Post offices. 241.2 Stations and branches. Operations. 241.3 Discontinuance of USPS-operated re- (e) Headquarters and field lines of suc- tail facilities. cession. Each Headquarters organiza- 241.4 Relocating retail services; adding new tional unit shall establish its own in- retail service facilities. ternal line of succession to provide for AUTHORITY: 39 U.S.C. 101, 401, 403, 404, 410, continuity under emergency condi- 1001. tions. Each Regional Postmaster Gen- eral, Regional Chief Inspector, Postal § 241.1 Post offices. Data Center Director, Inspector in Post Offices are established and Charge, and postmaster at first-class maintained at locations deemed nec- post offices shall prepare a succession essary to ensure that regular and effec- list of officials who will act in his stead tive postal services are available to all in the event he is incapacitated or ab- customers within specified geographic sent in an emergency. Orders of succes- boundaries. A Post Office may be oper- sion shall be shown by position titles, ated or staffed by a postmaster or by except those of the Inspection Service another type of postal employee at the may be shown by names. direction of the postmaster, including (f) Field responsibilities. Postmasters when the postmaster is not physically and heads of other installations shall: present. A Remotely Managed Post Of- (1) Carry out civil preparedness as- fice (RMPO) is a Post Office that offers signments, programs, etc., as directed part-time window service hours, is by regional officials. staffed by a Postal Service employee (2) Comply with, and cooperate in under the direction of a postmaster, community civil preparedness plans and reports to an Administrative Post (including exercise) for evacuation, Office. A Part-Time Post Office (PTPO) take cover and other survival measures is a Post Office that offers part-time prescribed for local populations. window service hours, is staffed by a (3) Designate representatives for con- Postal Service employee, and reports to a district office. Unless otherwise tinuing liaison with local civil pre- specified, all references to ‘‘Post Of- paredness organizations where such ac- fice’’ include RMPOs and PTPOs. tivity will not interfere with normal duties. [77 FR 46950, Aug. 7, 2012] (4) Endeavor to serve (at their own option) as members on the staff of the § 241.2 Stations and branches. local civil preparedness director, pro- (a) Description. (1) Stations are estab- vided such service will not interfere lished within the corporate limits or with their primary postal responsi- boundary, and branches are established bility in an emergency. outside the corporate limits or bound- (5) Authorize and encourage their ary of the city, town, or village in employees to participate voluntarily in which the main post office is located. nonpostal pre-emergency training pro- Stations and branches may be des- grams and exercises in cooperation ignated by number, letter or name. As with States and localities. a general rule, branches are named. (2) Stations and branches transact (39 U.S.C. 401(2), 402, 403, 404, as enacted by registry and money order business, sell Pub. L. 91–375, 84 Stat. 719) postage supplies, and accept matter for [38 FR 26193, Sept. 9, 1973] mailing. Delivery service, post office

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boxes, and other services may be pro- ated on or after July 14, 2011. Unless vided when directed by the postmaster. otherwise provided by responsible per- (3) Stations and branches, except sonnel, the rules under § 241.3 as in ef- nonpersonnel rural stations and fect prior to July 14, 2011, shall apply branches, are designated as inde- to discontinuance actions for which pendent when registered and other initial feasibility studies have been ini- mail is received or dispatched without tiated prior to July 14, 2011. Dis- passing through the main office. continuance actions pending as of De- (b) Classification—(1) Classified. Oper- cember 1, 2011, that pertain to the con- ated by postal employees in quarters version of a Post Office to another type provided by the Federal Government. of USPS-operated facility are no longer (2) Contract. Operated under contract subject to these regulations. by persons who are not Federal Gov- (2) Definitions. As used in this sec- ernment employees. Persons operating tion, the terms listed below are defined contract stations and branches are as follows: independent contractors and neither (i) ‘‘USPS-operated retail facility’’ in- the contractors nor any person em- cludes any Postal Service employee-op- ployed by them to assist in the conduct erated Post Office, station, or branch, of contract stations or branches shall but does not include any station, be employees of the Federal Govern- branch, community Post Office, or ment for any purpose whatsoever. other retail facility operated by a contractor. (39 U.S.C. 401) (ii) ‘‘Contractor-operated retail facil- [36 FR 4764, Mar. 12, 1971] ity’’ includes any station, branch, community Post Office, or other facility, § 241.3 Discontinuance of USPS-oper- including a private business, offering ated retail facilities. retail postal services that is operated (a) Introduction—(1) Coverage. (i) This by a contractor, and does not include section establishes the rules governing any USPS-operated retail facility. the Postal Service’s consideration of (iii) ‘‘Closing’’ means an action in whether an existing retail Post Office, which Post Office operations are per- station, or branch should be discon- manently discontinued without pro- tinued. The rules cover any proposal viding a replacement facility in the to: community. (A) Replace a USPS-operated Post (iv) ‘‘Consolidation’’ means an action Office, station, or branch with a con- that converts a Postal Service-oper- tractor-operated retail facility; ated retail facility into a contractor- (B) Combine a USPS-operated Post operated retail facility. The resulting Office, station, or branch with another contractor-operated retail facility re- USPS-operated retail facility; or ports to a Postal Service–operated re- (C) Discontinue a USPS-operated tail facility. Post Office, station, or branch without (v) ‘‘Discontinuance’’ means either a providing a replacement facility. closure or a consolidation. (ii) The conversion of a Post Office (vi) A ‘‘Remotely Managed Post Office’’ into, or the replacement of a Post Of- (RMPO) is a Post Office that offers fice with, another type of USPS-oper- part-time window service hours, is ated retail facility is not a discontinu- staffed by a Postal Service employee at ance action subject to this section. A the direction of a postmaster, and re- change in the staffing of a Post Office ports to an Administrative Post Office. such that it is staffed only part-time Unless otherwise specified, all ref- by a postmaster, or not staffed at all erences to ‘‘Post Office’’ include by a postmaster, but rather by another RMPOs. The classification of a Post Of- type of USPS employee, is not a dis- fice as an RMPO is not a discontinu- continuance action subject to this sec- ance action under this section. tion. (vii) A ‘‘Part-Time Post Office’’ (PTPO) (iii) The regulations in this section is a Post Office that offers part-time are mandatory only with respect to window service hours, is staffed by a discontinuance actions for which ini- Postal Service employee, and reports tial feasibility studies have been initi- to a district office. Unless otherwise

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specified, all references to ‘‘Post Of- 30-day period, receipt by the Commis- fice’’ include PTPOs. The classification sion is based on the postmark of the of a Post Office as a PTPO is not a dis- appeal, if sent through the mail, or on continuance action under this section. other appropriate documentation or in- (3) Requirements. A District Manager dicia, if sent through another lawful or the responsible Headquarters Vice delivery method. President, or a designee of either, may (v) The Commission may only affirm initiate a feasibility study of a USPS- the Postal Service determination or re- operated facility for possible dis- turn the matter for further consider- continuance. Any decision to close or ation but may not modify the deter- consolidate a USPS-operated retail fa- mination. cility may be effected only upon the (vi) The Commission is required to consideration of certain factors. These make any determination subject to 39 include the effect on the community U.S.C. 404(d)(5) within the 120 days served; the effect on employees of the specified by statute. USPS-operated retail facility; compli- (vii) The following table summarizes ance with government policy estab- the notice and appeal periods defined lished by law that the Postal Service by statute. must provide a maximum degree of effective and regular postal services to PUBLIC NOTICE OF PROPOSAL rural areas, communities, and small 60-day notice towns where Post Offices are not self- sustaining; the economic savings to the PUBLIC NOTICE OF FINAL Postal Service; and any other factors DETERMINATION the Postal Service determines nec- 30 days for filing any Wait at least 60 days essary. In addition, certain mandatory appeal; up to 120 from first day after procedures apply as follows: days for appeal posting final deter- (i) The public must be given 60 days’ consideration and mination before notice of a proposed action to enable decision. closing or consoli- the persons served by a USPS-operated dating USPS-oper- retail facility to evaluate the proposal ated retail facility. and provide comments. (4) Additional requirements. This sec- (ii) After public comments are re- tion also includes: ceived and taken into account, any (i) Rules to ensure that the commu- final determination to close or consoli- nity’s identity as a postal address is date a USPS-operated retail facility preserved. must be made in writing and must in- (ii) Rules for consideration of a pro- clude findings covering all the required posed discontinuance and for its imple- considerations. mentation, if approved. These rules are (iii) The written determination must designed to ensure that the reasons be made available to persons served by leading to discontinuance of a par- the USPS-operated retail facility at ticular USPS-operated retail facility least 60 days before the discontinuance are fully articulated and disclosed at a takes effect. stage that enables customer participa- (iv) Within the first 30 days after the tion to make a helpful contribution to- written determination is made avail- ward the final decision. able, any person regularly served by a (5) Initial feasibility study. A district Post Office subject to discontinuance manager, the responsible Headquarters may appeal the decision to the Postal vice president, or a designee of either Regulatory Commission. Where persons may initiate a feasibility study of a regularly served by another type of USPS-operated retail facility’s poten- USPS-operated retail facility subject tial discontinuance, in order to assist to discontinuance file an appeal with the district manager in determining the Postal Regulatory Commission, the whether to proceed with a written pro- General Counsel reserves the right to posal to discontinue the facility. assert defenses, including the Commis- (i) Permissible circumstances. The ini- sion’s lack of jurisdiction over such ap- tial feasibility study may be based peals. For purposes of determining upon circumstances including, but not whether an appeal is filed within the limited to, the following:

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(A) A postmaster vacancy; (B) Customers whose delivery carrier (B) Emergency suspension of the is stationed out of the USPS-operated USPS-operated retail facility due to retail facility under study; cancellation of a lease or rental agree- (C) Customers in the delivery area of ment when no suitable alternate quar- the same ZIP Code as the retail facility ters are available in the community, a under study, regardless of whether the fire or natural disaster, irreparable delivery carriers for those customers damage when no suitable alternate are stationed out of the retail facility quarters are available in the commu- under study or out of a nearby facility; nity, challenge to the sanctity of the and mail, or similar reasons; (D) Customers whom the retail facil- (C) Earned workload below the min- ity under study serves for allied deliv- imum established level for the lowest ery services such as mail pickup. level RMPO; (iv) Initial feasibility study due to emer- (D) Insufficient customer demand, gency suspension. Wherever possible evidenced by declining or low volume, when an initial feasibility study is to revenue, revenue units, local business be initiated under § 241.3(a)(5)(i)(B) (for activity, or local population trends; example, when it is anticipated that a (E) The availability of reasonable al- lease or rental agreement will be can- ternate access to postal services for the celled with no suitable alternate quar- community served by the USPS-oper- ters available in the community), re- ated retail facility; or sponsible personnel should initiate the initial feasibility study sufficiently in (F) The incorporation of two commu- advance of the circumstance prompting nities into one or other special cir- the emergency suspension to allow a cumstances. meaningful opportunity for public (ii) Impermissible circumstances. The input to be taken into account. If pub- following circumstances may not be lic input cannot be sought sufficiently used to justify initiation of an initial in advance of the end date of the lease feasibility study: or rental agreement, responsible per- (A) Any claim that the continued op- sonnel should endeavor, to the extent eration of a building without handi- possible, to continue operation of the capped modifications is inconsistent USPS-operated retail facility for the with the Architectural Barriers Act (42 duration necessary to gather public U.S.C. 4151 et seq.); input and make a more fully informed (B) The absence of running water or decision on whether to proceed with a restroom facilities; discontinuance proposal. Customers (C) Compliance with the Occupa- formerly served by the suspended facil- tional Safety and Health Act of 1970 (29 ity should receive notice under para- U.S.C. 651 et seq.); or graph (a)(5)(iii) of this section, includ- (D) In the absence of any cir- ing by mail, to the same extent that cumstances identified in paragraph they would have if the facility were not (a)(5)(i) of this section, the operation of in suspended status at the time of the a small Post Office at a deficit. initial feasibility study, proposal, or (iii) Notice to customers. Local man- final determination. agement must provide notification and (b) Preservation of community address— questionnaires to customers at the (1) Policy. The Postal Service permits USPS-operated retail facility under the use of a community’s separate ad- study. Local management may deter- dress to the extent practicable. mine whether notification is appro- (2) ZIP Code assignment. The ZIP Code priate through media outlets. In addi- for each address formerly served from tion, the following customers that re- the discontinued USPS-operated retail ceive delivery service from the USPS- facility should be kept, wherever prac- operated retail facility must receive tical. In some cases, the ZIP Code notification and questionnaires by originally assigned to the discontinued mail: USPS-operated retail facility may be (A) Post Office Box customers at the changed if the responsible District USPS-operated retail facility under Manager receives approval from his or study; her Vice President, Area Operations,

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before any proposal to discontinue the should make sure that these officials USPS-operated retail facility is posted. are invited to submit written com- (i) In a consolidation, the ZIP Code ments and suggestions as part of the for the replacement contractor-oper- record when the proposal is reviewed. ated retail facility is the ZIP Code (4) Preparation of written proposal. The originally assigned to the discontinued District Manager, or a designee, must facility. gather and preserve for the record all (ii) If the ZIP Code is changed and documentation used to assess the pro- the parent or gaining USPS-operated posed change. If the District Manager retail facility covers several ZIP Codes, thinks the proposed action is war- the ZIP Code must be that of the deliv- ranted, he or she, or a designee, must ery area within which the facility is lo- prepare a document titled ‘‘Proposal to cated. (Close) (Consolidate) the (Facility (3) USPS-operated retail facility’s city Name).’’ This document must describe, name in address. If all the delivery ad- analyze, and justify in sufficient detail dresses using the city name of the to Postal Service management and af- USPS-operated retail facility being fected customers the proposed service discontinued continue to use the same change. The written proposal must ad- ZIP Code, customers may continue to dress each of the following matters in use the discontinued facility’s city separate sections: name in their addresses, instead of that (i) Responsiveness to community postal of the new delivering USPS-operated needs. It is the policy of the Govern- retail facility. ment, as established by law, that the (4) Name of facility established by con- Postal Service will provide a maximum solidation. If a USPS-operated retail fa- degree of effective and regular postal cility is consolidated by establishing in services to rural areas, communities, its place a contractor-operated facility, and small towns where post offices are the replacement unit can be given the not self-sustaining. The proposal same name of the facility that is re- should: placed, if appropriate in light of the na- (A) Contrast the services available ture of the contract and level of service before and after the proposed change; provided. (B) Describe how the changes respond (c) Initial proposal—(1) In general. If a to the postal needs of the affected cus- District Manager believes that the dis- tomers; and continuance of a USPS-operated retail (C) Highlight particular aspects of facility within his or her responsibility customer service that might be less ad- may be warranted, the District Man- vantageous as well as more advan- ager: tageous. (i) Must use the standards and proce- (ii) Effect on community. The proposal dures in § 241.3(c) and (d). must include an analysis of the effect (ii) Must investigate the situation. the proposed discontinuance might (iii) May propose the USPS-operated have on the community served, and retail facility be discontinued. discuss the application of the require- (2) Consolidation. The proposed action ments in § 241.3(b). may include a consolidation of USPS- (iii) Effect on employees. The written operated retail facilities. A consolida- proposal must summarize the possible tion arises when a USPS-operated re- effects of the change on postmasters tail facility is replaced with a con- and other employees of the USPS-oper- tractor-operated retail facility. ated retail facility considered for dis- (3) Views of postmasters. Whether the continuance. discontinuance under consideration in- (iv) Savings. The proposal must involves a consolidation or not, the Dis- clude an analysis of the economic sav- trict Manager must discuss the matter ings to the Postal Service from the with the postmaster (or the officer in proposed action, including the cost or charge) of the USPS-operated retail fa- savings expected from each major fac- cility considered for discontinuance, tor contributing to the overall esti- and with the postmaster of any other mate. USPS-operated retail facility affected (v) Other factors. The proposal should by the change. The District Manager include an analysis of other factors

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that the District Manager determines (ii) The USPS-operated retail facility are necessary for a complete evalua- proposed to serve as the supervising fa- tion of the proposed change, whether cility; favorable or unfavorable. (iii) Any USPS-operated retail facil- (vi) Summary. The proposal must in- ity likely to serve a significant number clude a summary that explains why the of customers of the USPS-operated re- proposed action is necessary, and as- tail facility under study; and sesses how the factors supporting the (iv) If service at the facility under proposed change outweigh any negative study has been suspended, any USPS- factors. In taking competing consider- operated retail facility providing alterations into account, the need to pro- native service for former customers of vide regular and effective service is the facility under study. paramount. (2) Contents of comment notice. The in- (vii) Notice. The proposal must invitation for comments must: clude the following notices: (i) Ask interested persons to provide (A) Supporting materials. ‘‘Copies of written comments within 60 days, to a all materials on which this proposal is stated address, offering specific opin- based are available for public inspec- ions and information, favorable or un- tion at (Facility Name) during normal favorable, on the potential effect of the office hours.’’ proposed change on postal services and (B) Nature of posting. ‘‘This is a pro- the community. posal. It is not a final determination to (ii) State that copies of the proposal (close) (consolidate) this facility.’’ with attached optional comment forms (C) Posting of final determination. ‘‘If a are available in the affected USPS-op- final determination is made to close or erated retail facilities. consolidate this facility, after public (iii) Provide a name and telephone comments on this proposal are received number to call for information. and taken into account, a notice of (3) Other steps. In addition to pro- that final determination will be posted viding notice and inviting comment, in this facility.’’ the District Manager must take any (D) Appeal rights. ‘‘The final deter- other steps necessary to ensure that mination will contain instructions on the persons served by affected USPS- how affected customers may appeal a operated retail facilities understand decision to close or consolidate a post the nature and implications of the pro- office to the Postal Regulatory Com- posed action. A community meeting mission. Any such appeal must be re- must be held to provide outreach and ceived by the Commission within 30 gain public input after the proposal is days of the posting of the final deter- posted, unless otherwise instructed by mination.’’ The notice in this clause is the responsible Headquarters Vice provided when the USPS-operated re- President or the applicable Vice Presi- tail facility under study is a post of- dent, Area Operations. Authorization fice. For purposes of this clause, the to forgo a community meeting should date of receipt by the Commission is issue only where exceptional cir- based on the postmark of the appeal, if cumstances make a community meet- sent through the mail, or on other ap- ing infeasible, such as where the com- propriate documentation or indicia, if munity no longer exists because of a sent through another lawful delivery natural disaster or because residents method. have moved elsewhere. (d) Notice, public comment, and (i) If oral contacts develop views or record—(1) Posting proposal and comment information not previously docu- notice. A copy of the written proposal mented, whether favorable or unfavor- and a signed invitation for comments able to the proposal, the District Man- must be posted prominently, with addi- ager should encourage persons offering tional copies to be given to customers the views or information to provide upon request, in the following loca- written comments to preserve them for tions: the record. (i) The USPS-operated retail facility (ii) As a factor in making his or her under study, unless service at the facil- decision, the District Manager may not ity has been suspended; rely on communications received from

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anyone unless submitted in writing for tent possible how many comments sup- the record. port each point listed. (4) Record. The District Manager (2) Re-evaluation of proposal. After must keep, as part of the record for completing the analysis, the District consideration and review, all docu- Manager must review the proposal and mentation gathered about the proposed re-evaluate all the tentative conclu- change. sions previously made in light of addi- (i) The record must include all infor- tional customer information and views mation that the District Manager con- in the record. sidered, and the decision must stand on (i) Discontinuance not warranted. If the record. No written information or the District Manager decides against views submitted by customers may be the proposed discontinuance, he or she excluded. must post, in the USPS-operated retail (ii) The docket number assigned to facilities where the proposal was post- the proposal must be the ZIP Code of ed under paragraph (d)(1) of this sec- the office proposed for closing or con- tion, a notice stating that the proposed solidation. closing or consolidation is not war- (iii) The record must include a chron- ranted. ological index in which each document (ii) Discontinuance warranted. If the contained is identified and numbered District Manager decides that the pro- as filed. posed discontinuance is justified, the (iv) As written communications are appropriate sections of the proposal received in response to the public no- must be revised, taking into account tice and invitation for comments, they the comments received from the pub- are included in the record. lic. After making necessary revisions, (v) A complete copy of the record the District Manager must: must be available for public inspection (A) Transmit the revised proposal during normal office hours at the and the entire record to the responsible USPS-operated retail facilities where Headquarters Vice President. the proposal was posted under para- (B) Certify that all documents in the graph (d)(1) of this section, beginning record are originals or true and correct no later than the date on which notice copies. is posted and extending through the (f) Postal Service decision—(1) In gen- posting period. When appropriate, cer- eral. The responsible Headquarters Vice tain personally identifiable informa- President or a designee must review tion, such as individual names or resi- the proposal of the District Manager dential addresses, may be redacted and decide on the merits of the pro- from the publicly accessible copy of posal. This review and the decision the record. must be based on and supported by the (vi) Copies of documents in the record developed by the District Man- record (except the proposal and com- ager. The responsible Headquarters ment form) are provided on request and Vice President can instruct the Dis- on payment of fees as noted in chapter trict Manager to provide more infor- 4 of Handbook AS–353, Guide to Privacy, mation to supplement the record. Each the Freedom of Information Act, and instruction and the response must be Records Management. added to the record. The decision on (e) Consideration of public comments the proposal of the District Manager, and final local recommendation—(1) which must also be added to the record, Analysis of comments. The District Man- may approve or disapprove the pro- ager or a designee must prepare an posal, or return it for further action as analysis of the public comments reset forth in this paragraph (f). ceived for consideration and inclusion (2) Approval. The responsible Head- in the record. If possible, comments quarters Vice President or a designee subsequently received should also be may approve the proposed discontinu- included in the analysis. The analysis ance, with or without further revisions. should list and briefly describe each If approved without further revision, point favorable to the proposal and the term ‘‘Final Determination’’ is each point unfavorable to the proposal. substituted for ‘‘Proposal’’ in the title. The analysis should identify to the ex- A copy of the Final Determination

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must be provided to the District Man- on file in the Postal Service Head- ager. The Final Determination con- quarters library. stitutes the Postal Service determina- (g) Implementation of final determination for the purposes of 39 U.S.C. 404(d). tion—(1) Notice of final determination to (i) Supporting materials. The Final De- discontinue USPS-operated retail facility. termination must include the following The District Manager must: notice: ‘‘Copies of all materials on (i) Provide notice of the Final Deter- which this Final Determination is mination by posting a copy promi- based are available for public inspec- nently in the USPS-operated retail fa- tion at the (Facility Name) during nor- cilities in each affected USPS-operated mal office hours.’’ retail facilities where the proposal was (ii) Appeal rights. If the USPS-oper- posted under paragraph (d)(1) of this ated retail facility subject to dis- section, including the USPS-operated continuance is a post office, the Final retail facilities likely to be serving the Determination must include the fol- affected customers. The date of posting lowing notice: ‘‘Pursuant to Public must be noted on the first page of the Law 94–421 (1976), this Final Determina- posted copy as follows: ‘‘Date of post- tion to (close) (consolidate) the (Facil- ing.’’ ity Name) may be appealed by any per- (ii) Ensure that a copy of the com- son served by that office to the Postal pleted record is available for public in- Regulatory Commission, 901 New York spection during normal business hours Avenue, NW., Suite 200, Washington, at each USPS-operated retail facility DC 20268–0001. Any appeal must be re- where the Final Determination is post- ceived by the Commission within 30 ed for 30 days from the posting date. days of the first day this Final Deter- (iii) Provide copies of documents in mination was posted. If an appeal is the record on request and payment of filed, copies of appeal documents pre- fees as noted in chapter 4 of Handbook pared by the Postal Regulatory Com- AS–353, Guide to Privacy, the Freedom of mission, or the parties to the appeal, Information Act, and Records Manage- must be made available for public in- ment. spection at the (Facility Name) during (2) Implementation of determinations normal office hours.’’ not appealed. If no appeal is filed, the (3) Disapproval. The responsible Head- official closing date of the office must quarters Vice President or a designee be published in the Postal Bulletin and may disapprove the proposed dis- effective, at the earliest, 60 days after continuance and return it and the the first day that Final Determination record to the District Manager with was posted. A District Manager may written reasons for disapproval. The request a different date for official dis- District Manager or a designee must continuance in the Retail Change An- post, in each affected USPS-operated nouncement document submitted to retail facility where the proposal was the responsible Headquarters Vice posted under paragraph (d)(1) of this President or a designee. However, the section, a notice that the proposed USPS-operated retail facility may not closing or consolidation has been deter- be discontinued sooner than 60 days mined to be unwarranted. after the first day of the posting of the (4) Return for further action. The re- notice required by paragraph (g)(1) of sponsible Headquarters Vice President this section. or a designee may return the proposal (3) Actions during appeal—(i) Imple- of the District Manager with written mentation of discontinuance. If an appeal instructions to give additional consid- is filed, only the responsible Head- eration to matters in the record, or to quarters Vice President may direct a obtain additional information. Such in- discontinuance before disposition of structions must be placed in the the appeal. However, the USPS-oper- record. ated retail facility may not be perma- (5) Public file. Copies of each Final nently discontinued sooner than 60 Determination and each disapproval of days after the first day of the posting a proposal by the responsible Head- of the notice required by paragraph quarters Vice President must be placed (g)(1) of this section.

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(ii) Display of appeal documents. The instructions as the responsible Head- Office of General Counsel must provide quarters Vice President may provide. the District Manager with copies of all [76 FR 41420, July 14, 2011; 76 FR 43898, July pleadings, notices, orders, briefs, and 22, 2011, as amended at 76 FR 66187, Oct. 26, opinions filed in the appeal proceeding. 2011; 77 FR 46950, Aug. 7, 2012] (A) The District Manager must ensure that copies of all these documents § 241.4 Relocating retail services; add- are prominently displayed and avail- ing new retail service facilities. able for public inspection in the USPS- (a) Application. (1) Except as other- operated retail facilities where the wise provided, this section applies Final Determination was posted under when the Postal Service makes a ten- paragraph (g)(1)(i) of this section. If the tative decision to relocate all retail operation of that USPS-operated retail services from a retail service facility facility has been suspended, the Dis- to a separate existing physical build- trict Manager must ensure that copies ing, or to add a new retail service facil- are displayed in the USPS-operated re- ity for a community. As used in this tail facilities likely to be serving the section, ‘‘retail services’’ means the affected customers. single-piece mail services offered to in- (B) All documents except the Postal dividual members of the public on a Regulatory Commission’s final order walk-in basis at a retail service facil- and opinion must be displayed until ity, and a ‘‘retail service facility’’ is a the final order and opinion are issued. physical building where Postal Service The final order and opinion must be employees provide such retail services. displayed at the USPS-operated retail (2) The rules of this paragraph (a)(2) facility to be discontinued for 30 days apply to temporary additions of retail or until the effective date of the dis- service facilities, temporary or emer- continuance, whichever is earlier. The gency relocations of retail services, final order and opinion must be dis- and to provisional relocations of retail played for 30 days in all other USPS- services. (i) The Postal Service may imple- operated retail facilities where the ment temporary additions or reloca- Final Determination was posted under tions without undertaking the process paragraph (g)(1)(i) of this section. in paragraph (c) of this section when (4) Actions following appeal decision necessary to support Postal Service —(i) Determination affirmed. If the Com- business for holidays, special events, or mission dismisses the appeal or affirms overflow business. Temporary addi- the Postal Service’s determination, the tions and relocations normally will be official closing date of the office must limited to 180 days in duration. Any ad- be published in the Postal Bulletin, ef- ditional incremental time periods of up fective anytime after the Commission to 180 days each must be approved by renders its opinion, if not previously the vice president, Facilities or his des- implemented under § 241.3(g)(3)(i). How- ignee. ever, the USPS-operated retail facility (ii) The Postal Service may imple- may not be discontinued sooner than 60 ment emergency relocations without days after the first day of the posting first undertaking the process in para- of the notice required under graph (c) of this section when the Post- § 241.3(g)(1). al Service determines relocation is re- (ii) Determination returned for further quired to protect Postal Service busi- consideration. If the Commission re- ness due to events such as earthquakes, turns the matter for further consider- floods, fire, potential or actual OSHA ation, the responsible Headquarters violations, safety factors, environ- Vice President must direct that either: mental causes, other business dis- (A) Notice be provided under para- rupting events, or as necessary to pro- graph (f)(3) of this section that the protect employees, customers, or the secu- posed discontinuance is determined not rity of the mail. Following an emer- to be warranted or gency relocation, as soon as the Postal (B) The matter be returned to an ap- Service determines it is feasible to propriate stage under this section for identify the long-term location for the further consideration following such retail services, the Postal Service will

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make a tentative decision to remain in (1) Identify the community and engage the emergency relocation site on a local elected officials. The Postal Service long-term basis, to return to the origi- representative will identify the com- nal retail service facility (if feasible), munity the Postal Service anticipates or to relocate to another site. Unless would be affected by implementing the the decision is to return to the original proposal, taking into account such fac- retail service facility, the Postal Serv- tors as the Postal Service determines ice then will follow the process in para- are appropriate for the proposal. The graph (c) of this section with respect to Postal Service representative then will collecting and considering community deliver to one or more local elected input on a proposal to implement that public officials a written outline of the decision. proposal and offer to discuss the pro- (iii) The Postal Service may imple- posal with them. The Postal Service ment provisional relocations in con- representative may elect to conduct nection with lease terminations or ex- that discussion either in person or pirations, or in connection with a les- using any other appropriate commu- sor exercising a right to require the nication tool, including electronic Postal Service to move to alternate communications. If the officials accept premises, when the Postal Service has the offer, then the Postal Service rep- not already undertaken the process in resentative will identify the need and paragraph (c) of this section for such outline the proposal that is under con- relocations. Not later than 180 days fol- sideration to meet it, explain the proc- lowing a provisional relocation, the ess by which the Postal Service will so- Postal Service will make a tentative licit and consider input from the af- decision to remain in the provisional fected community, and solicit input relocation site on a long-term basis or from the local officials regarding the to relocate to another site. After that decision, the Postal Service will follow proposal. the process in paragraph (c) of this sec- (2) Notify the community and arrange tion with respect to collecting and con- for public presentation. The Postal Serv- sidering community input on a pro- ice will send an initial news release posal to implement that decision. outlining the proposal to one or more (3) This section applies to tentative news media serving the community decisions described in paragraphs (a)(1) and, if the community has a retail and (a)(2) made on or after March 23, service facility, then the Postal Serv- 2015. The rules under § 241.4 in effect ice also will post a copy of the informa- prior to that date shall apply to tion given to local officials or the news projects described in paragraph (a) of release in the public lobby of that re- this section undertaken prior to that tail service facility. If the proposal date. concerns relocating retail services (b) Purpose. The purpose of this sec- from a leased facility, then, using the tion is to provide opportunities for most current notice address informa- community members and their elected tion in the Postal Service’s file for the local officials to appeal Postal Service site, the Postal Service will deliver to tentative decisions described in para- the lessor a copy of the information graphs (a)(1) and (a)(2) of this section given to local officials, provided, how- and to give input on proposals for im- ever, that no such notice will be re- plementing those decisions (each a quired when the lessor has terminated ‘‘proposal’’), and to require the Postal the Postal Service’s lease or has de- Service to consider any appeals and clined to renew the Postal Service input in arriving at final decisions to lease on terms acceptable to the Postal proceed with, modify, or cancel pro- Service. Additionally, the Postal Serv- posals. ice representative will ask the local of- (c) Collecting and considering commu- ficials to place a Postal Service presen- nity input. When the Postal Service tation of the proposal on the regular makes a tentative decision described in agenda of the next scheduled public paragraphs (a)(1) and (a)(2) of this sec- meeting, or will schedule a separate tion, a Postal Service representative Postal Service public meeting con- will take the following steps: cerning the proposal. At least 15 days

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prior to the meeting, the Postal Serv- pated services to be offered at that site ice will advertise the date, time, and or in that area. location of the public meeting in a (B) The Postal Service may identify local news medium and, if the commu- more than one potential relocation site nity has an existing retail service facil- and/or area, for example, when the ity, then the Postal Service also will Postal Service has not selected among post in the public lobby of that retail competing sites. service facility a notice of the date, (ii)(A) If the proposal concerns add- time, and location of the public meeting a new retail service facility for a ing. community, then the Postal Service (3) Present the proposal to the commu- will: nity. At the public meeting, the Postal (1) Discuss the reasons for the addi- Service will identify the need, e.g., to tion; replace an expiring lease or to serve a (2) Identify the site or area, or both, new population center; identify the to which the Postal Service anticipates tentative decision, e.g., to relocate re- adding the retail service facility; tail services or add a retail service fa- (3) Describe the anticipated size of cility; outline the proposal to meet the the added retail service facility, and need; invite questions; solicit written the anticipated services to be offered; input on the proposal; and provide an and address to which the community and (4) Outline any anticipated construc- local officials may send written ap- tion (e.g., of a stand-alone building or peals of the tentative decision and interior improvements to an existing comments on the proposal for a period building (or portion thereof) that will of 30 days following the public meeting. be leased by the Postal Service). Under exceptional circumstances that (B) The Postal Service may identify would prevent a Postal Service rep- more than one potential site and/or resentative from attending or con- area, for example, when the Postal ducting a public meeting to present the Service has not selected yet among proposal within a reasonable time, the competing sites. Postal Service, in lieu of a public meet- (4) Consider comments and appeals. ing, will mail written notification of After the 30-day comment and appeal the tentative decision and the proposal period, the Postal Service will consider to customers within the community the comments and appeals received and post a notice of the proposal in the that identify reasons why the Postal retail service facility that would be af- Service’s tentative decision and pro- fected by the proposal, seeking their posal (e.g., to relocate to the selected written input on the proposal and pro- site, or to add a new retail service fa- viding an address to which the commu- cility) is, or is not, the optimal solu- nity and local officials may send writ- tion for the identified need. Following ten appeals of the tentative decision that consideration, the Postal Service and comments on the proposal during will make a final decision to proceed the 30 days following that notification. with, modify, or cancel the proposal. An example of exceptional cir- The Postal Service then will inform cumstances would be a proposal that local officials in writing of its final de- would be implemented in a sparsely cision and send an initial news release populated area remote from the seat of announcing the final decision to local local government or any forum where news media. If the community has a re- the public meeting reasonably could be tail service facility, then the Postal held. Service also will post a copy of the in- (i)(A) If the proposal concerns reloca- formation given to local officials or the tion, then the Postal Service will: news release in the public lobby of that (1) Discuss the reasons for relocating; retail service facility. The Postal Serv- (2) Identify the site or area, or both, ice then will implement the final deci- to which the Postal Service anticipates sion. relocating the retail services; and (5) Identify any new site or area. After (3) Describe the anticipated size of the public meeting under paragraph the retail service facility for the relo- (c)(3) of this section, if the Postal Serv- cated retail services, and the antici- ice decides to use a site or area that it

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did not identify at the public meeting, (b) Location of offices. Postal units and this section applies with respect to may not be located in, or directly con- that new site or area, then the Postal nected to, a room in which intoxicating Service will undertake the steps in liquor is sold to be consumed on the paragraphs (c)(2) through (4) of this premises. section with regard to the new site or (c) Lost articles. When articles are area. turned in to employees, the name and (d) Effect on other obligations and poli- address of the finder shall be recorded cies. (1) Nothing in this section shall so the article may be returned to him add to, reduce, or otherwise modify the if not claimed by the loser. If the name Postal Service’s legal obligations or of the finder cannot be obtained, and policies for compliance with: the article is not claimed within 30 (i) Section 106 of the National His- days, it must be disposed of in the toric Preservation Act, 16 U.S.C. 470, same manner as unidentified material Executive Order 12072, and Executive found loose in the mail. Do not return Order 13006; postal money orders to the finder. Mail (ii) 39 U.S.C. 404(d) and 39 CFR 241.3; to Money Order Branch, Accounting or Division, U.S. Postal Service, General (iii) 39 U.S.C. 409(f); Accounting Office Building, Wash- (2) These are independent policies or ington, DC 20260, with a memorandum obligations of the Postal Service that of explanation. are not dependent upon a relocation or (d) Public use of restrooms. Restrooms addition of a retail service facility. off public corridors shall normally be kept open during regular hours of busi- [80 FR 9193, Feb. 20, 2015] ness for the benefit of the public. Where vandalism or loitering cannot be PART 242—CHANGE OF SITE controlled, postmasters may lock restrooms, furnishing those agencies § 242.2 Change of site—fourth-class of- served by the restrooms, keys for em- fices. ployee use. This shall not be construed Report by memorandum to chief, or- to permit access by nonpostal per- ganization and management branch, sonnel to restrooms in restricted postal when change in site is necessary. Com- areas. plete Form 1021 when furnished. Retain (e) Letter drops. At all except fourth- one copy in files. If new location is one- class post offices, provide a regulation fourth of a mile or more from existing letterbox for depositing mail in front of location, furnish a statement signed by or next to the post office. Show collec- majority of customers approving tion time schedules on letterboxes. At change. When a change involves mov- fourth-class offices, if a letterbox is not ing a post office from one county to an- supplied, provide a slot in the outer other, notify the Deputy Postmaster post office door. When messengers or General, of the circumstances (includ- star route carriers have access to lob- ing a sketch showing present and pro- bies, door slot deposits must lead to a posed sites), and await approval of that locked box. Division. (f) Hour signs. Display hours of window service prominently at all first-, (39 U.S.C. 401) second-, and third-class post offices, [36 FR 4765, Mar. 12, 1971] classified stations and branches, and annexes. Use Sign 41, Hours decal set, available in supply centers. PART 243—CONDUCT OF OFFICES (g) Service of process on postal premises. Postmasters or other installation § 243.2 Quarters. heads shall permit service on postal (a) Employee bulletin boards. Bulletin premises of civil and criminal process boards may be placed in workrooms affecting employees in personal mat- and employees’ lunchrooms for dis- ters, when such service of process will playing notices as prescribed in this not interfere with postal operations. manual and Management Labor Orga- Process servers should be directed to nization Agreements. the postmaster’s or installation head’s

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office, where the employee will be Administration, and ABA Chapter 2, called in and service made. Section Scoping requirements); pertinent parts 265.11 of this chapter contains rules re- of Appendix D to Part 1191, Technical garding compliance with subpoena (which includes Chapters 3 through 10). duces tecum, court orders, and sum- Appendix E to Part 1191, List of Fig- monses where official business or offi- ures and Index. cial records are involved. (b) These sections listed in paragraph (h) Public service areas—prohibited (a) of this section are adopted ver- items. Photographs of an incumbent or batim, with the exception of the Advi- former President or Postmaster Gen- sory Notes, which are expressly ex- eral are not to be displayed in post of- cluded. fice lobbies or in common use public service areas such as elevator lobbies § 254.2 Definition of primary function and corridors in facilities owned by or area and criteria used to determine leased to the Postal Service. Further, whether an alteration has an effect on an area containing a primary such photographs are not to be requi- function that is disproportionate to sitioned or purchased by postal instal- the overall alterations. lations at Postal Service expense. (a) Terminology. The new accessibility (39 U.S.C. 501) guidelines require that certain terms [36 FR 4765, Mar. 12, 1971, as amended at 39 be defined by the participating federal FR 38376, Oct. 31, 1974; 40 FR 8820, Mar. 3, agencies. In the U.S. Access Board’s 36 1975; 42 FR 33722, July 1, 1977; 44 FR 39854, CFR part 1191, Appendix C, ABA chap- July 6, 1979; 82 FR 12921, Mar. 8, 2017] ter 2, section F202.6.2 requires that ‘‘primary function areas’’ be defined General Postal Administration and Section F202.4 contains requirements for alterations affecting ‘‘pri- PART 254—POSTAL SERVICE mary function areas’’ stating, ‘‘* * *an STANDARDS FOR FACILITY AC- alteration that affects or could affect the usability of or access to an area CESSIBILITY PURSUANT TO THE containing a primary function shall be ARCHITECTURAL BARRIERS ACT made so as to ensure that, to the maximum extent feasible, the path of trav- Sec. el to the altered area, including the 254.1 Adoption of U.S. Access Board Stand- rest rooms, telephones, and drinking ards as Postal Service Standards of Fa- cility Accessibility fountains serving the altered area, are 254.2 Definition of primary function area readily accessible to and usable by in- and criteria used to determine whether dividuals with disabilities, unless such an alteration has an effect on an area alterations are disproportionate to the containing a primary function that is overall alterations in terms of cost and disproportionate to the overall alter- scope as determined under criteria es- ations. tablished by the Administrator of * * * AUTHORITY: 39 U.S.C 101, 401, 403; 29 U.S.C. the United States Postal Service.’’ 792(b)(3) and 42 U.S.C. 12204. (b) Primary function areas. For pur- SOURCE: 70 FR 28214, May 17, 2005, unless poses of this part, the primary function otherwise noted. of the Postal Service is to provide mail service for its customers, that is to ac- § 254.1 Adoption of U.S. Access Board cept, distribute, transport and deliver Standards as Postal Service Stand- the mail. Two essential facilities for ards of Facility Accessibility. fulfilling these functions are customer (a) The United States Postal Service lobby areas where customers conduct adopts as its Architectural Barriers their retail transactions, access mail Act (ABA) ‘‘Standards for Facility Ac- depositories and post office boxes and cessibility,’’ the following sections of work room areas where postal employ- 36 CFR part 1191: ees distribute the mail and perform Appendix A to Part 1191, Table of other core postal operations. There- Contents for apps. C, D, and E. fore, for purposes of the accessibility Appendix C to Part 1191, Architec- guidelines applicable to the Postal tural Barriers Act, Scoping (which con- Service under the Architectural Bar- tains ABA Chapter 1, Application and riers Act, two primary function areas

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are identified: Customer Lobbies and travel, nor to any associated facilities, Workroom Areas. shall be required under F202.6.2 for al- (c) Disproportionality. (1) According to terations that have an estimated total Section F202.6.2, ‘‘alteration’’ of ele- cost less than 20 percent of the fair ments in a primary function area can market value of the facility. trigger a requirement to make accessi- (e) Percentage threshold. For alter- bility improvements along the path of ations subject to F202.6.2 that meet or travel to the area and improvements to exceed the ‘‘magnitude threshold,’’ the rest rooms, telephones, and drinking maximum cost for accessibility im- fountains that serve the altered area if provements to the path of travel, in- the alteration ‘‘affects or could affect cluding all costs for accessibility im- the usability of or access to an area provements to rest rooms, telephones, containing a primary function.’’ It is and drinking fountains that serve the conceivable that almost any repair or altered area, shall not exceed 20 per- alteration project in a ‘‘primary func- cent of the total cost of the original al- tion area’’ could affect the usability of teration. Costs for accessibility im- the area. Therefore a literal interpreta- provements in excess of the 20 percent tion of this provision could require an threshold shall be deemed ‘‘dispropor- expansion of the scope of virtually any tionate.’’ alteration in a primary function area, regardless of the size and scope of the PART 255—ACCESS OF PERSONS original project. According to Section WITH DISABILITIES TO POSTAL F202.6.2, accessibility improvements SERVICE PROGRAMS, ACTIVITIES, must be made to the path of travel to FACILITIES, AND ELECTRONIC the altered area and to rest rooms, AND INFORMATION TECH- telephones, and drinking fountains that serve the altered area ‘‘unless NOLOGY such alterations are disproportionate Sec. to the overall alterations in terms of 255.1 Purpose. cost and scope’’. 255.2 Definitions. (2) For purposes of the accessibility 255.3 Nondiscrimination under any program guidelines applicable to the Postal or activity conducted by the Postal Serv- Service under the Architectural Bar- ice. riers Act, two criteria must be consid- 255.4 Accessibility to electronic and infor- ered in making a determination wheth- mation technology. 255.5 Employment. er accessibility improvements are dis- 255.6 Processing of complaints. proportionate to the cost and scope of 255.7 Special arrangements for postal serv- the original alteration: a magnitude ices. threshold for the original alteration 255.8 Access to postal facilities. and a maximum ‘‘percentage thresh- 255.9 Other postal regulations; authority of old’’ for the accessibility alteration. postal managers and employees. (d) Magnitude threshold. It is antici- AUTHORITY: 39 U.S.C. 101, 401, 403, 1001, 1003, pated that, in most cases, a significant 3403, 3404; 29 U.S.C. 791, 794, 794d. additional effort would be required to SOURCE: 69 FR 44962, July 28, 2004, unless assess physical conditions along the otherwise noted. path of travel and for rest rooms, telephones, and drinking fountains that § 255.1 Purpose. serve the altered area, and to deter- (a) This part implements section 504 mine the scope, budget and appropriate of the Rehabilitation Act of 1973, as design requirements for any corrective amended. Section 504 prohibits dis- alterations. Unless the original alter- crimination on the basis of disability ation is of substantial magnitude, a in programs or activities conducted by disproportionate effort would be de- executive agencies or by the Postal voted to such investigation, design, Service. This part also implements sec- and administration leaving few, if any tion 508 of the Rehabilitation Act of funds to accomplish corrective work. 1973, as amended. Section 508 requires Accordingly, a ‘‘magnitude threshold’’ that executive agencies and the Postal is established such that no accessi- Service ensure, absent an undue bur- bility improvements to the path of den, that individuals with disabilities

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have access to electronic and informa- (f) Information technology means any tion technology that is comparable to equipment, or interconnected system the access of individuals who are not or subsystem of equipment, that is disabled. used in the automatic acquisition, (b) The standards relating to elec- storage, manipulation, management, tronic and information technology ex- movement, control, display, switching, pressed in this part are intended to be interchange, transmission, or reception consistent with the standards an- of data or information. nounced by the Architectural and (g) Postal manager. As used in this Transportation Barriers Compliance part, ‘‘postal manager’’ means the Board on December 21, 2000. Those manager or official responsible for a standards are codified at 36 CFR part service, facility, program, or activity. 1194. (h) Qualified individual with a dis- § 255.2 Definitions. ability. For purposes of this part, ‘‘qualified individual with a disability’’ (a) Agency as used in this part means means— the Postal Service. (1) With respect to any Postal Serv- (b) Area/functional vice president also ice program or activity, except for em- includes his or her designee. ployment, under which a person is re- (c) Electronic and information tech- quired to perform services or to nology (EIT) includes ‘‘information achieve a level of accomplishment, an technology’’ and any equipment or individual with a disability who meets interconnected system or subsystem of the essential eligibility requirements equipment that is used in the creation, conversion, or duplication of data or and who can achieve the purpose of the information. The term does not include program or activity without modifica- any equipment that contains embedded tions in the program or activity that information technology that is used as the agency can demonstrate would re- an integral part of the product, but the sult in a fundamental alteration in its principal function of which is not the nature; or acquisition, storage, manipulation, (2) With respect to any other pro- management, movement, control, dis- gram or activity, except for employ- play, switching, interchange, trans- ment, an individual with a disability mission, or reception of data or infor- who meets the essential eligibility re- mation. quirements for participation in, or re- (d) Formal complaint means a written ceipt of benefits from, that program or statement that contains the complain- activity; or ant’s name, address, and telephone (3) With respect to employment, an number, sets forth the nature of the individual with a disability who can complainant’s disability, and describes perform the essential functions of the the agency’s alleged discriminatory ac- job in question with or without reason- tion in sufficient detail to inform the able accommodation. agency of the nature of the alleged vio- (i) Section 501 means section 501 of the lation of section 504 or of section 508. It Rehabilitation Act of 1973, as amended. shall be signed by the complainant or Section 501 is codified at 29 U.S.C. 791. by someone authorized to do so on the complainant’s behalf. (j) Section 504 means section 504 of the (e) Individual with a disability. For Rehabilitation Act of 1973, as amended. purposes of this part, ‘‘individual with Section 504 is codified at 29 U.S.C. 794. a disability’’ means any person who— (k) Section 508 means section 508 of (1) Has a physical or mental impair- the Rehabilitation Act of 1973, as ment that substantially limits one or amended. Section 508 is codified at 29 more of such person’s major life activi- U.S.C. 794d. ties; (l) Undue burden means significant (2) Has a record of such an impair- difficulty or expense. ment; or (m) Vice President and Consumer Advo- (3) Is regarded as having such an im- cate also includes his or her designee. pairment.

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§ 255.3 Nondiscrimination under any to employment within the Postal Serv- program or activity conducted by ice. the Postal Service. In accordance with section 504 of the § 255.6 Processing of complaints. Rehabilitation Act, no qualified indi- (a) Section 504 complaints, employment. vidual with a disability shall, solely by The Postal Service shall process com- reason of his or her disability, be ex- plaints of employees and applicants al- cluded from participation in, be denied leging violations of section 504 with re- the benefits of, or be subjected to dis- spect to employment according to the crimination under, any program or ac- procedures established by the Equal tivity conducted by the Postal Service. Employment Opportunity Commission § 255.4 Accessibility to electronic and in 29 CFR part 1614 pursuant to section information technology. 501 of the Rehabilitation Act of 1973, as (a) In accordance with section 508 of amended, 29 U.S.C. 791. In accordance the Rehabilitation Act, the Postal with 29 CFR part 1614, the Postal Serv- Service shall ensure, absent an undue ice has established procedures for proc- burden, that the electronic and infor- essing complaints of alleged employ- mation technology the agency procures ment discrimination, based upon dis- allows— ability, in the agency’s handbook, (1) Individuals with disabilities who Equal Employment Opportunity Com- are Postal Service employees or appli- plaint Processing. cants to have access to and use of in- (b) Section 504 complaints, members of formation and data that is comparable the public. The procedures of this part to the access to and use of information shall apply to section 504 complaints and data by Postal Service employees alleging disability discrimination in or applicants who are not individuals any program or activity of the Postal with disabilities; and Service and brought by members of the (2) Individuals with disabilities who public. are members of the public seeking in- (c) Section 508 complaints, members of formation or services from the Postal the public, employees, and applicants. Service to have access to and use of in- The procedures of this part shall apply formation and data that is comparable to section 508 complaints alleging fail- to the access to and use of information ure to provide access to electronic and and data by members of the public who information technology and brought by are not individuals with disabilities. members of the public or by employees (b) When procurement of electronic or applicants. Section 508 complaints and information technology that meets shall be processed to provide the rem- the standards published by the Archi- edies required by section 508 of the Re- tectural and Transportation Barriers habilitation Act. Compliance Board would pose an undue burden, the Postal Service shall pro- (d) Complaint Procedures. Any indi- vide individuals with disabilities cov- vidual with a disability who believes ered by paragraph (a) of this section that he or she has been subjected to with the information and data by an discrimination prohibited by this part alternative means of access that allows or by the alleged failure of the agency the individuals to use the information to provide access to electronic and in- and data. formation technology may file a complaint by following the procedures de- § 255.5 Employment. scribed herein. A complainant shall No qualified individual with a dis- first exhaust informal administrative ability shall, on the basis of disability, procedures before filing a formal com- be subjected to discrimination in em- plaint. ployment with the Postal Service. The (1) Informal complaints relating to Post- definitions, requirements, and proce- al Service programs or activities and to dures of section 501 of the Rehabilita- EIT. (i) A complainant initiates the in- tion Act of 1973, as established by the formal process by informing the re- Equal Employment Opportunity Com- sponsible postal manager orally or in mission in 29 CFR part 1614 shall apply writing of the alleged discrimination

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or inaccessibility of Postal Service pro- the area/functional vice president shall grams, activities, or EIT. Postal man- be sent to the complainant no later agers or employees who receive infor- than the 60th day from the agency’s re- mal complaints that they lack the au- ceipt of the informal complaint. thority to resolve must promptly refer (2) Formal complaints. If an informal any such informal complaint to the ap- complaint filed under paragraph (d)(1) propriate postal manager, and at the of this section denies relief, the com- same time must notify the complain- plainant may seek relief in any other ant of the name, address, and telephone appropriate forum, including the right number of the person handling the to file a formal complaint with the complaint. Vice President and Consumer Advocate (ii) Resolution of the informal com- in accordance with the following proce- plaint and time limits. Within 15 days of dures. If the complainant files a formal receipt of the informal complaint, the complaint with the Vice President and responsible postal manager must send Consumer Advocate, the complainant the complainant a written acknowl- shall exhaust the formal complaint edgement of the informal complaint. procedures before filing suit in any The written acknowledgment will in- other forum. clude the date the complaint was filed (i) Where to file. Formal complaints and a description of the issue(s). If the relating to programs or activities con- matter cannot be resolved within 30 ducted by the Postal Service or to ac- days of its receipt, the complainant cess of Postal Service EIT may be filed must be sent a written interim report with the Vice President and Consumer which explains the status of the infor- Advocate, United States Postal Serv- mal complaint and the proposed resolu- ice, 475 L’Enfant Plaza, SW., Wash- tion of the matter. On or before the ington, DC 20260. 60th day from the agency’s receipt of (ii) When to file. A formal complaint the informal complaint, the appro- shall be filed within 30 days of the date priate area/functional vice president the complainant receives the decision within the Postal Service shall send a of the area/functional vice president to written decision to the complainant de- deny relief. For purposes of deter- tailing the final disposition of the in- mining when a formal complaint is formal complaint and the reasons for timely filed under paragraph (d)(2)(ii) that disposition. The decision shall of this section, a formal complaint contain the notice that the complain- mailed to the agency shall be deemed ant may challenge an informal decision filed on the date it is postmarked. Any which denies relief either by pro- other formal complaint shall be ceeding in any other appropriate forum deemed filed on the date it is received or by filing a formal complaint with by the Vice President and Consumer the Vice President and Consumer Ad- Advocate. vocate. The notice will give the address (iii) Acceptance of the formal com- of the Vice President and Consumer plaint. The Vice President and Con- Advocate. The notice shall also state sumer Advocate shall accept a timely that if the complainant chooses to file filed formal complaint that meets the a formal complaint, the complainant requirements of § 255.2(d), that is filed shall exhaust the formal complaint after fulfilling the informal exhaustion procedures before filing suit in any procedures of § 255.6(d)(1), and over other forum. which the agency has jurisdiction. The (iii) Automatic review. The responsible Vice President and Consumer Advocate postal manager’s proposed disposition shall notify the complainant of receipt of the informal complaint shall be sub- and acceptance of the formal committed to the appropriate district/pro- plaint within 15 days of the date the gram manager for review. The district/ Vice President and Consumer Advocate program manager shall forward the received the formal complaint. proposed disposition to the area/func- (iv) Resolution of the formal complaint. tional vice president for review and Within 180 days of receipt and accept- issuance of the written decision. This ance of a formal complaint over which automatic review process shall be com- the agency has jurisdiction, the Vice pleted such that the written decision of President and Consumer Advocate

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shall notify the complainant of the re- ticular postal services may contact sults of the investigation of the formal their local postal manager. complaint. The notice shall be a writ- (d) Response to a request or complaint ten decision stating whether or not re- regarding a special arrangement for postal lief is being granted and the reasons for services. A local postal manager receiv- granting or denying relief. The notice ing a request or complaint about a spe- shall state that it is the final decision cial arrangement for postal services of the Postal Service on the formal must provide any arrangement as re- complaint. quired by postal regulations. If no spe- (e) No retaliation. No person shall be cial arrangements are required by post- subject to retaliation for opposing any al regulations, the local postal man- practice made unlawful by the Reha- ager, in consultation with the district bilitation Act of 1973, as amended, 29 manager or area manager, as needed, U.S.C. 791, or for participating in any may provide a special arrangement or stage of administrative or judicial pro- take any action that will accommodate ceedings under the statute. an individual with a disability as required by section 504 or by this part. § 255.7 Special arrangements for postal services. § 255.8 Access to postal facilities. Members of the public who are un- (a) Legal requirements and policy—(1) able to use or who have difficulty using ABA Standards. Where the design certain postal services may be eligible standards of the Architectural Barriers under postal regulations for special ar- Act (ABA) of 1968, 42 U.S.C. 4151 et seq., rangements. Some of the special ar- do not apply, the Postal Service may rangements that the Postal Service has perform a discretionary retrofit to a fa- authorized are listed below. No one is cility in accordance with this part to required to use any special arrange- accommodate individuals with disabil- ment offered by the Postal Service, but ities. an individual’s refusal to make use of a (2) Discretionary modifications. The particular special arrangement does Postal Service may modify facilities not require the Postal Service to offer not legally required to conform to ABA other special arrangements to that in- standards when it determines that dividual. doing so would be consistent with effi- (a) The Postal Operations Manual of- cient postal operations. In determining fers information on special arrange- whether modifications not legally re- ments for the following postal services: quired should be made, due regard is to (1) Carrier delivery services and pro- be given to: grams. (i) The cost of the discretionary (2) Postal retail services and pro- modification; grams. (ii) The number of individuals to be (i) Stamps by mail or phone. benefited by the modification; (ii) Retail service from rural carriers. (iii) The inconvenience, if any, to the (iii) Self-service postal centers. Self- general public; service postal centers contain vending (iv) The anticipated useful life of the equipment for the sale of stamps and modification to the Postal Service; stamp items, and deposit boxes for par- (v) Any requirement to restore a cels and letter mail. Many centers are leased premises to its original condi- accessible to individuals in wheel- tion at the expiration of the lease, and chairs. Information regarding the loca- the cost of such restoration; tion of the nearest center may be ob- (vi) The historic or architectural sig- tained from a local post office. nificance of the property in accordance (b) The Domestic Mail Manual, the Ad- with the National Historic Preserva- ministrative Support Manual, and the tion Act of 1966, 16 U.S.C. 470 et seq.; International Mail Manual contain in- (vii) The availability of other options formation regarding postage-free mail- to foster service accessibility; and ing for mailings that qualify. (viii) Any other factor that is rel- (c) Inquiries and requests. Members of evant and appropriate to the decision. the public wishing further information (b) Inquiries and requests. (1) Inquiries about special arrangements for par- concerning access to postal facilities,

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and requests for discretionary alter- formance of the service, including di- ations of postal facilities not covered rect supervision and supporting func- by the design standards of the ABA, tions, plus the cost of materials and may be made to the local postal man- supplies specifically sold, used or con- ager of the facility involved. sumed. Also included is an element rep- (2) The local postal manager’s re- resenting a reasonable share of Postal sponse to a request or complaint re- Service general overhead costs which garding an alteration to a facility will are not attributable or assignable spe- be made after consultation with the cifically to any product or service. The district manager or the area manager. establishment of such fees and charges If the determination is made that shall be reasonably consistent with the modification to meet ABA design methods employed in establishing standards is not required, a discre- rates and fees for postal services then tionary alteration may be made on a in effect. case-by-case basis in accordance with (c) Except as provided in paragraph the criteria listed in paragraph (a)(2) of (d) of this section, arrangements for this section. If a discretionary alter- Postal Service participation in special ation is not made, the local postal surveys, censuses, and other activities manager should determine if a special must be made between the national arrangement for postal services under headquarters of the requesting agen- § 255.7 can be provided. cies and the Customer Services Depart- § 255.9 Other postal regulations; au- ment, U.S. Postal Service, Washington, thority of postal managers and em- DC 20260. Refer all requests to the Re- ployees. gional Postmaster General for forwarding to Headquarters. Authority to This part supplements all other postal regulations. Nothing in this part is perform services for Government agen- intended either to repeal, modify, or cies is announced in the Postal Bul- amend any other postal regulation, to letin or by individual letters to the of- authorize any postal manager or em- fices involved. ployee to violate or exceed any regu- (d) Housing Vacancy Surveys—(1) Gen- latory limit, or to confer any budg- eral. An interagency agreement be- etary authority on any postal official tween the U.S. Postal Service (USPS) or employee outside normal budgetary and the Federal Home Loan Bank procedures. Board (FHLBB) establishes the terms and conditions and reimbursement PART 259—SERVICES PERFORMED rates under which USPS will conduct Housing Vacancy Surveys in City De- FOR OTHER AGENCIES livery offices when requested by FHLBB. Sec. 259.1 Government. (2) Restrictions. The Agreement only 259.2 Red Cross. authorizes the disclosure of aggregate statistical data. Postal managers must § 259.1 Government. not permit the name or address of any (a) Policy. The Postal Service cooper- past or present postal patron, or any ates with Federal Agencies whenever other person to be disclosed unless the overall costs to Government will be such disclosure is authorized in writing reduced. Assistance in a number of spe- by USPS Regions or Headquarters and cial projects and programs is provided is not in violation of 39 U.S.C. 412. when the knowledge and abilities of (3) Postmaster’s Responsibility. (i) A postal employees are helpful. postmaster will receive notification (b) Reimbursement. The Postal Service from FHLBB when his office has been establishes reasonable fees and charges selected to conduct a Housing Vacancy for nonpostal services performed for Survey. Normally, written notification agencies of the Federal as well as State will be mailed to the postmaster 30 governments. In establishing such fees days in advance of the date FHLBB and charges, the Postal Service con- would like USPS to conduct the sur- siders the value of time of the per- vey, since USPS is under no obligation sonnel directly involved in the per- to use overtime or auxiliary assistance

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to conduct these surveys. The post- information on the whereabouts of per- master or his designee will schedule sons displaced by disasters, and other- the survey on or near the date re- wise cooperate with each other, as fol- quested and will promptly reply to lows: FHLBB so that the necessary forms (1) The Red Cross will use Form 3575, will be provided on time. Change of Address Order, as a standard (ii) All necessary forms and instruc- item in Red Cross disaster relief. It will tions will be supplied directly to each urge disaster victims displaced from post office to be surveyed. Postmasters their homes to obtain and complete the will designate a manager in each delivery unit to coordinate the survey with- forms, it will distribute the forms to in the unit and to review completed disaster victims who need them, and it survey forms for accuracy. will collect from the victims and turn (iii) FHLBB may request USPS to over to the Postal Service any com- perform special or emergency surveys pleted forms received. with less than 30 days advance notice. (2) The Postal Service will provide Since FHLBB has agreed to reimburse the Red Cross the blank forms needed. USPS at twice the normal rates for (3) During each disaster and subse- promptly performing such surveys, quent disaster relief efforts, the Postal every reasonable effort should be made Service will establish a separate file of to accommodate such requests in a change of address forms completed by timely manner. disaster victims, and will make avail- (iv) Housing Vacancy Surveys will able to the Red Cross information in not be conducted during the month of the file. This information will be used December of any year. by the Red Cross only to locate individ- (v) Postmasters will notify the Office uals and families, to answer inquiries of Delivery and Collection, Wash- ington, DC 20260, of the number of each from relatives and friends concerning type survey form completed for the whereabouts and welfare of the dis- FHLBB. FHLBB will then remit pay- aster victims, or to make contact with ment directly to Headquarters, USPS. disaster victims who have applied for (vi) USPS will not release or publish assistance from the Red Cross but who any survey results except in response cannot be located because of a change to a court order, subpoena, or as re- of address. quired by the Freedom of Information (4) The Postal Service and the Red Act. Cross will encourage appropriate local (e) Unauthorized projects prohibited. postal officials and Red Cross chapters Do not conduct special surveys or oth- to maintain contact with each other erwise participate in any cooperative and to participate in local and commu- projects without the authorization in nity planning for disasters. paragraph (c) of this section. (5) When appropriate, the Postal (39 U.S.C. 401, 411) Service and the Red Cross will meet [36 FR 4773, Mar. 12, 1971, as amended at 40 and exchange information at the na- FR 26511, June 24, 1975; 41 FR 56196, Dec. 27, tional headquarters level concerning 1976; 42 FR 58170, Nov. 8, 1977; 42 FR 63170, the effectiveness of their joint efforts Dec. 15, 1977] for disaster relief. (6) Regional Postmasters General and § 259.2 Red Cross. Postal Inspectors in Charge are respon- (a) General. The Postal Service and sible for seeing that post offices imple- the Red Cross cooperate to maintain ment these cooperative arrangements communication between the individual in disaster situations. and the community during times of (7) The instructions in § 259.2 serve as disaster. This applies only to natural a broad framework within which field disasters such as those caused by officials of both agencies may coordi- floods, tornados, hurricanes, earthquakes, fires, explosions, etc., and not nate their facilities and resources. to those caused by enemy action. (b) Role of Postal Service. The Postal Service and the Red Cross will share

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However, postal officials shall cooper- hered to or if questions of interpreta- ate with Red Cross officials to the max- tion of procedure arise. imum feasible degree during times of [80 FR 45065, July 29, 2015] natural disasters. (39 U.S.C. 401, 411) § 261.3 Policy. [36 FR 4773, Mar. 12, 1971, as amended at 40 It is the policy of the Postal Service: FR 26511, June 24, 1975] (a) To, as appropriate, create, preserve, protect and disclose records Records and Information which contain adequate and proper documentation of the organization, functions, policies, decisions, oper- PART 261—RECORDS AND ations, procedures, activities and INFORMATION MANAGEMENT transactions of the Postal Service, (b) To reduce to an absolute min- Sec. imum the records holdings of the Post- 261.1 Purpose and scope. al Service by strict adherence to estab- 261.2 Authority. lished records retention schedules. 261.3 Policy. 261.4 Responsibility. [40 FR 45721, Oct. 2, 1975, as amended at 44 FR 51223, Aug. 31, 1979] AUTHORITY: 39 U.S.C. 401.

§ 261.1 Purpose and scope. § 261.4 Responsibility. Under 39 U.S.C. 410, as enacted by the (a) The Chief Freedom of Information Postal Reorganization Act, the U.S. Act (FOIA) Officer, whose duties are Postal Service is not subject to the performed by the Associate General provisions of the Federal Records Act Counsel and Chief Ethics and Compli- of 1950, or any of its supporting regula- ance Officer, is responsible for: tions which provide for the conduct of (1) Overseeing Postal Service compli- records management in Federal agen- ance with the FOIA. cies. The objective of parts 261 through (2) Making recommendations to the 268 of this chapter are to provide the Postmaster General regarding the basis for an organization-wide records Postal Service’s FOIA program. and information management program (3) Monitoring and reporting on FOIA affecting all Postal Service organiza- implementation and performance for tional components having the custody the Postal Service. of any form of information and records. (b) The Chief Privacy Officer, under the Associate General Counsel and [80 FR 45065, July 29, 2015] Chief Ethics and Compliance Officer, is responsible for administering records § 261.2 Authority. and information management policies, (a) As provided in 39 U.S.C. 401(5), the and the privacy of information pro- Postal Service has the power to acquire grams, and for the compliance of all property it deems necessary or conven- handbooks, directives, and instructions ient in the transaction of its business in support of these policies and pro- and to hold, maintain, sell, lease or grams. otherwise dispose of such property. (c) The Deputy Chief FOIA Officer, (b) Under § 262.2 of this chapter, the under the Privacy and Records Office, Postal Service Privacy and Records Of- administers the Postal Service release fice, located under the Associate Gen- of information program with the as- eral Counsel and Chief Ethics and Com- sistance of FOIA Coordinators in Head- pliance Officer, is responsible for the quarters departments and area and dis- retention, security, and privacy of trict offices. Postal Service records and is empow- (d) Freedom of Information Act Pub- ered to authorize the disclosure of such lic Liaisons are responsible for: records and to order their disposal by (1) Managing FOIA Requester Service destruction or transfer. Included is the Centers (RSCs). authority to issue records management (2) Receiving concerns of requesters policy and to delegate or take appro- about the service provided by the FOIA priate action if that policy is not ad- RSC following an initial response.

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(3) Ensuring a service-oriented re- PART 262—RECORDS AND INFOR- sponse to requests and FOIA-related in- MATION MANAGEMENT DEFINI- quiries. TIONS (4) Reporting to the Chief FOIA Offi- cer on their activities. Sec. (e) Freedom of Information Act Re- 262.1 Purpose and scope. quester Service Centers are responsible 262.2 Officials. for: 262.3 Information. 262.4 Records. (1) Facilitating communication be- 262.5 Systems (Privacy). tween the Postal Service and FOIA re- 262.6 Retention and disposal. questers. 262.7 Non-records. (2) Providing information to request- AUTHORITY: 5 U.S.C. 552, 552a; 39 U.S.C. 401. ers concerning the status of FOIA re- SOURCE: 49 FR 30693, Aug. 1, 1984, unless quests and information about responses otherwise noted. to such requests. (f) Freedom of Information Act Coor- § 262.1 Purpose and scope. dinators fill an ad hoc position located This part contains the official defini- within each Headquarters department, tion of those basic records and infor- and Area and District office, and are mation management terms that are responsible for: frequently used throughout Postal (1) Coordinating and tracking FOIA Service regulations and directives. requests referred to or received by their functional or geographical area. § 262.2 Officials. (2) Providing procedural guidance, (a) Chief Privacy Officer. The Chief upon request, to records custodians. Privacy Officer (CPO) is responsible for (3) Assisting the Deputy Chief FOIA the issuance of policy on the protection Officer with national reporting activi- of privacy and the release of Postal ties, such as annual reporting of local Service records. The CPO has the power to authorize the disclosure of FOIA and Privacy Act activities. such records. Additionally, the CPO is (g) Records Custodians are respon- responsible for establishing procedures sible for ensuring that records within and guidelines to ensure that record their facilities or organizations are management practices are in compli- managed according to Postal Service ance with the Privacy Act and FOIA. policies. Vice presidents or their des- The CPO directs the activities of the ignees are the custodians of records Privacy and Records Office and may maintained at Headquarters. In the also delegate or take appropriate ac- field, the Records Custodian is the head tion if policies are not adhered to or if of a Postal Service facility such as an questions of interpretation or proce- area, district, Post Office, or other dures arise. Postal Service installation or designee (b) Deputy Chief FOIA Officer. The that maintains Postal Service records. Deputy Chief FOIA Officer, under the Senior medical personnel are the Privacy and Records Office, admin- custodians of restricted medical isters the Postal Service release of in- records maintained within Postal Serv- formation program and has the power ice facilities. The Custodian of Em- to authorize the disclosure of records. ployee Assistance Program (EAP) The Deputy Chief FOIA Officer over- records is the Postal Service counselor, sees FOIA Requester Service Centers a supplier, or the public health service, (RSCs). whichever provided the services. (c) Records Custodian. The Records (h) Postal Service managers are re- Custodian is the postmaster or other sponsible for administering records and head of a facility such as an area vice information management policies and president, district manager, or head of for complying with all handbooks, di- a postal installation or department rectives, and instructions in support of who maintains Postal Service records. Vice presidents are the custodians of this policy. records maintained at Headquarters. [80 FR 45065, July 29, 2015] Senior medical personnel are the

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custodians of restricted medical United States that has been deter- records maintained within postal fa- mined under Executive Order 12356 to cilities. require protection against unauthor- (d) Information System Executive. This ized disclosure and has been so des- is the Postal Service official, usually a ignated. vice president, who prescribes the existence of and the policies for an infor- § 262.4 Records. mation system. Recorded information, regardless of (e) Records Office. The Records Office media, format, or physical characteris- is responsible for the issuance of policy tics, including electronic data, devel- on the maintenance and disposition of oped or received by the Postal Service Postal Service records and informa- in connection with the transaction of tion, and to delegate or take appro- its business and retained in its cus- priate action if such policy is not ad- tody; for machine-readable records, a hered to or if questions of interpreta- collection of logically related data tion or procedure arise. treated as a unit. [80 FR 45066, July 29, 2015] (a) Permanent record. A record determined by the Records Office or the Na- § 262.3 Information. tional Archives and Records Adminis- Data combined with the knowledge of tration as having sufficient historical its context and having the potential to or other value to warrant continued serve a Postal Service use. preservation. (All other records are (a) Sensitive information. Information considered temporary and must be which has been identified by the USPS scheduled for disposal.) as restricted or critical. (b) Corporate records. Those records (1) Critical information. Information series that are designated by the that must be available in order that Records Office as containing informa- the Postal Service effectively perform tion of legal, audit, obligatory or archi- its mission and meet legally assigned val value about events and trans- responsibilities; and for which special actions of interest to the entire cor- precautions are taken to ensure its ac- porate body of the Postal Service. Cor- curacy, relevance, timeliness and com- porate records are distinguished from pleteness. This information, if lost, operational records, which have value would cause significant financial loss, only in their day-to-day use, and from inconvenience or delay in performance precedential files, which have value of the USPS mission. only as examples. (2) Restricted information. Information (c) Active record. A record that con- that has limitations placed upon both tains information used for conducting its access within the Postal Service current business. and disclosure outside the Postal Serv- (d) Inactive record. A record that con- ice consistent with the Privacy and tains information which is not used for Freedom of Information Acts. conducting current business, but for (i) Restricted mandatory. Information which the retention period has not yet that has limitations upon its internal expired. access and that may be disclosed only (e) Vital records. Certain records in accordance with an Executive Order, which must be available in the event of public law, or other Federal statute a national emergency in order to en- and their supporting postal regula- sure the continuity of Postal Service tions. operations and the preservation of the (ii) Restricted discretionary. Informa- rights and interests of the Postal Serv- tion that has limitations upon its in- ice, its employees, contractors and cus- ternal access and that may be withheld tomers. There are two types of vital from external disclosure solely in ac- records: Emergency Operating Records cordance with postal regulations, con- and Rights and Interests Records. sistent with the Freedom of Informa- (1) Emergency operating records. Cer- tion Act. tain vital records necessary to support (b) Classified information (National Se- essential functions of the Postal Serv- curity). Information about the national ice during and immediately following a defense and foreign relations of the national emergency.

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(2) Rights and interest records. Certain matches are specifically excluded from vital records maintained to ensure the the term ‘‘matching program’’: preservation of the rights and interests (i) Statistical matches whose purpose of the Postal Service, its employees, is solely to produce aggregate data contractors and customers. stripped of personal identifiers. (ii) Statistical matches whose pur- [49 FR 30693, Aug. 1, 1984, as amended at 51 FR 26385, July 23, 1986; 60 FR 57344, Nov. 15, pose is in support of any research or 1995; 63 FR 6481, Feb. 9, 1998; 64 FR 41290, July statistical project. 30, 1999; 68 FR 56558, Oct. 1, 2003] (iii) Law enforcement investigative matches whose purpose is to gather § 262.5 Systems (Privacy). evidence against a named person or (a) Privacy Act system of records. A persons in an existing investigation. Postal Service system containing in- (iv) Tax administration matches. formation about individuals, including (v) Routine administrative matches mailing lists, from which information using Federal personnel records, pro- is retrieved by the name of an indi- vided that the purpose is not to take vidual or by some identifying number any adverse action against an indi- or symbol assigned to the individual, vidual. such as a Social Security Account (vi) Internal matches using only Number. records from Postal Service systems of (b) Individual (record subject). A living records, provided that the purpose is person. Does not include sole propri- not to take any adverse action against etorships, partnerships or corporations. any individual. A business firm identified by the name (vii) Matches performed for security of one or more persons is not an indi- clearance background checks or for vidual. foreign counterintelligence. (c) Computer matching program. A (2) Although these and other match- ‘‘matching program,’’ as defined in the ing activities that fall outside the defi- Privacy Act, 5 U.S.C. 552a(a)(8), is sub- nition of ‘‘matching program’’ are not ject to the matching provisions of the subject to the matching provisions of Act, published guidance of the Office of the Privacy Act or OMB guidance, Management and Budget, and these other provisions of the Act and of these regulations. The term ‘‘matching pro- regulations may be applicable. No gram’’ includes any computerized com- matching program or other matching parison of: activity may be conducted without the (1) A Postal Service automated sys- prior approval of the Records Office. tem of records with an automated sys- [49 FR 30693, Aug. 1, 1984, as amended at 59 tem of records of another Federal agen- FR 37160, July 21, 1994; 60 FR 57344, Nov. 15, cy, or with non-Federal records, for the 1995; 64 FR 41290, July 30, 1999; 68 FR 56558, purpose of: Oct. 1, 2003] (i) Establishing or verifying the eligibility of, or continuing compliance § 262.6 Retention and disposal. with statutory and regulatory require- (a) Records control schedule. A direc- ments by, applicants for, recipients or tive describing records series that are beneficiaries of, participants in, or pro- maintained by components of the Post- viders of services with respect to, cash al Service; it provides maintenance, re- or in-kind assistance or payments tention, transfer, and disposal instruc- under Federal benefit programs, or tions for each series listed, and serves (ii) Recouping payments or delin- as the authority for Postal officials to quent debts under such Federal benefit implement such instructions. programs; (b) Disposal (records). The permanent (2) A Postal Service automated per- removal of records or information from sonnel or payroll system of records Postal Service custody; included are: with another automated personnel or (1) Transfer to the National Archives. payroll system of records of the Postal (2) Donation to the Smithsonian In- Service or other Federal Agency or stitution, local museums or historical with non-Federal records. societies. (d) Other computer matching activities. (3) Sale as waste material. (1) The following kinds of computer (4) Discarding.

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(5) Physical destruction. disposed of as soon as they have served (c) Retention period. The authorized their purpose. length of time that a records series must be kept before its disposal, usu- § 263.3 Responsibility. ally stated in terms of months or (a) Records Office. Records Office has years, but sometimes expressed as con- the responsibility for providing for the tingent upon the occurrence of an establishment of retention schedules event; usually the retention period re- and has the authority to approve them. fers to the period of time between the Furthermore, that office has the au- creation of a series and its authorized thority to dispose of Postal Service disposal date; however, in some cases it records by transfer or destruction. refers to the length of time between (b) Custodians. Custodians are respon- the cutoff point and the disposal date. sible for the retention and prompt disposal of records in their custody and § 262.7 Non-records. for delegating in writing, persons to (a) Non-record material. Includes perform these duties. blank forms and surplus publications, handbooks, circulars, bulletins, an- [40 FR 45722, Oct. 2, 1975, as amended at 60 FR 57344, Nov. 15, 1995; 64 FR 41290, July 30, 1999; nouncements, and other directives as 68 FR 56558, Oct. 1, 2003] well as any material not directly associated with the transaction of Postal § 263.4 Records disposal. Service business. All disposals of records containing (b) Personal papers. Those materials sensitive information, i.e. transfers to created or received during an individ- records storage centers, destruction, ual’s period of employment with the transfers external to the USPS, and Postal Service which are of a purely maintenance of accounting records re- private or nonofficial character, or garding such disposal, must be accom- which were neither created nor re- plished in accordance with procedures ceived in connection with Postal Serv- ice business. issued by the Records Office. [40 FR 45722, Oct. 2, 1975, as amended at 60 FR PART 263—RECORDS RETENTION 57344, Nov. 15, 1995. Redesignated and amended at 64 FR 41290, July 30, 1999; 68 FR 56558, AND DISPOSITION Oct. 1, 2003]

Sec. § 263.5 Inquiries. 263.1 Purpose and scope. 263.2 Policy. Inquiries regarding records mainte- 263.3 Responsibility. nance and disposition should be di- 263.4 Records disposal. rected to the Manager, Records Office, 263.5 Inquiries. United States Postal Service, 475 AUTHORITY: 39 U.S.C. 401. L’Enfant Plaza, SW., Washington, DC 20260, or, by telephone, (202) 268–2608. SOURCE: 40 FR 45722, Oct. 2, 1975, unless otherwise noted. [64 FR 41290, July 30, 1999, as amended at 68 FR 56558, Oct. 1, 2003] § 263.1 Purpose and scope. This part contains the policy and PART 264—VITAL RECORDS general regulations pertaining to the retention and disposition of records Sec. and information throughout all organi- 264.1 Purpose and scope. zational levels and components. 264.2 Policy. 264.3 Responsibility. § 263.2 Policy. 264.4 Vital Records Program. It is the policy of the U.S. Postal AUTHORITY: 39 U.S.C. 401. Service to establish and maintain SOURCE: 44 FR 51224, Aug. 31, 1979, unless schedules specifying the retention peri- otherwise noted. ods required for all official and duplicate record copies. Furthermore, it is § 264.1 Purpose and scope. the policy that all duplicate record Certain records are critical to the copies and non-record material will be continuity of Postal Service operations

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or to the preservation of the rights and PART 265—PRODUCTION OR DIS- interests of the Postal Service, its em- CLOSURE OF MATERIAL OR IN- ployees, contractors or customers. To FORMATION ensure that these records are available when needed, specific controls are re- Subpart A—Procedures for Disclosure of quired which affect all organizational Records Under the Freedom of Infor- components having the custody of mation Act records defined as being ‘‘vital.’’ Sec. § 264.2 Policy. 265.1 General provisions. It is the policy of the U.S. Postal 265.2 Proactive disclosure of Postal Service Service to ensure the availability of all records. records considered critical to the con- 265.3 Procedure for submitting a FOIA request. tinuity of its operations and the pres- 265.4 Responsibility for responding to re- ervation of the rights and interests of quests. the Postal Service, its employees, con- 265.5 Timing of responses to requests. tractors, and customers. Vital records 265.6 Responses to requests. shall be routinely maintained at 265.7 Confidential commercial information predesignated off-site locations to en- obtained from submitters. sure their availability when needed by 265.8 Administrative appeals. management and operating personnel. 265.9 Fees.

§ 264.3 Responsibility. Subpart B—Production or Disclosure in (a) Manager, Records Office. The Man- Federal and State Proceedings ager, Records Office, is responsible for 265.11 Compliance with subpoenas duces categorizing records as vital, and in tecum, court orders, and summonses. conjunction with the Chief Postal In- 265.12 Demands for testimony or records in spector/Emergency Coordinator shall certain legal proceedings. establish and maintain the vital 265.13 Compliance with subpoenas, sum- records program, and ensure compli- monses, and court orders by postal em- ance with supportive procedures. ployees within the Postal Inspection Service where the Postal Service, the (b) Chief Postal Inspector. As the United States, or any other Federal Postal Service’s Emergency Coordi- agency is not a party. nator, the Chief Postal Inspector shall establish and maintain a program to Subpart C—Availability of Records ensure that vital records are available at predesignated off-site locations for 265.14 Rules concerning specific categories of records. use during a national emergency. (c) Custodians. Custodians are respon- AUTHORITY: 5 U.S.C. 552; 5 U.S.C. App. 3; 39 sible for following vital records pro- U.S.C. 401, 403, 410, 1001, 2601; Pub. L. 114–185. gram procedures including the for- SOURCE: 81 FR 86271, Nov. 30, 2016, unless warding of vital records to otherwise noted. predesignated off-site locations. [44 FR 51224, Aug. 31, 1979, as amended at 60 Subpart A—Procedures for Disclo- FR 57344, Nov. 15, 1995; 64 FR 41290, July 30, sure of Records Under the 1999; 68 FR 56558, Oct. 1, 2003] Freedom of Information Act

§ 264.4 Vital Records Program. § 265.1 General provisions. Complete procedures concerning the (a) This subpart contains the regula- identification, categorization, proc- tions that implement the Freedom of essing, protection, and transfer of vital Information Act (FOIA), 5 U.S.C. 552, records are provided by the office of insofar as the Act applies to the Postal Corporate Accounting or the USPS Service. These rules should be read in Emergency Coordinator, as appro- conjunction with the text of the FOIA priate. and the Uniform Freedom of Information [44 FR 51224, Aug. 31, 1979, as amended at 60 Fee Schedule and Guidelines published FR 57344, Nov. 15, 1995; 64 FR 41290, July 30, by the Office of Management and Budg- 1999] et, (OMB Guidelines), 52 FR 10012 (Mar.

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27, 1987). The Postal Service FOIA Re- RSCs can be found at http:// quester’s Guide, an easy-to-read guide about.usps.com/who-we-are/foia/wel- for making Postal Service FOIA re- come.htm. quests, is available at http:// (b) Records available in an electronic about.usps.com/who-we-are/foia/wel- format. Records that the FOIA requires come.htm. the Postal Service to make available (b) Requests made by individuals for for public inspection in an electronic records about themselves under the format pursuant to 5 U.S.C. 552(a)(2) Privacy Act of 1974, 5 U.S.C. 552a, are and that are exempt from the require- processed under Part 266 as well as ments of 5 U.S.C. 552(a)(3), may be under this subpart. accessed through the Postal Service’s (c) It is the policy of the Postal Serv- Web site at http://about.usps.com/who- ice to make its official records avail- we-are/foia/welcome.htm. The Postal able to the public to the maximum ex- Service must ensure that its Web site tent consistent with the public inter- of posted records and indices is re- est. This policy requires a practice of full disclosure of those records that are viewed and updated on an ongoing covered by the requirements of the basis. Such records available for public FOIA, subject only to the specific ex- inspection in an electronic format in- emptions required or authorized by clude the following: law. The exemptions from mandatory (1) Opinions. All final opinions and disclosure for various types of records orders made in the adjudication of provided by 5 U.S.C. 552(b) and 39 cases by the Judicial Officer and Ad- U.S.C. 410(c) reflect the fact that under ministrative Law Judges, all final de- some circumstances, the public inter- terminations pursuant to section 404(b) est may be better served by leaving the of title 39, United States Code, to close disclosure of particular records to the or consolidate a post office, or to dis- discretion of the Postal Service rather approve a proposed closing or consoli- than by requiring their disclosure. This dation, all advisory opinions con- Postal Service policy does not create cerning the private express statutes any right enforceable in court. issued pursuant to 39 CFR 310.6, and all (d) As referenced in this subpart, com- supplier disagreement decisions are on ponent means any department or facil- file and available for inspection and ity within the Postal Service that copying at the Headquarters Library maintains records; the Office of Inspec- and, if created on or after November 1, tor General; and the Postal Inspection 1996, also at the Postal Service’s Web Service. Postal Service refers to all such site at http://about.usps.com/who-we-are/ components collectively. foia/welcome.htm. (e) Nothing in this subpart shall be (2) Administrative manuals and instruc- construed to entitle any person, as of tions. The manuals, instructions, and right, to any service or to the disclo- other publications of the Postal Serv- sure of any record to which such person ice that affect members of the public is not entitled under the FOIA. are available through the Headquarters § 265.2 Proactive disclosure of Postal Library and at many post offices and Service records. other postal facilities. Those which are (a) In general. The Postal Service is available to the public but are not list- responsible for determining which of ed for sale may be inspected in the its records must be made publicly Headquarters Library, at any postal fa- available, for identifying additional cility which maintains a copy, or, if records of interest to the public that created on or after November 1, 1996, are appropriate for public disclosure, through the Postal Service’s Web site and for posting and indexing such at http://about.usps.com/who-we-are/foia/ records. The Postal Service’s FOIA Re- welcome.htm. Copies of publications quester Service Centers (RSCs) and which are not listed as for sale or as FOIA Public Liaisons can assist indi- available free of charge may be re- viduals in locating Postal Service quested on an individual basis in ac- records. Descriptions of, and contact cordance with the procedures provided information for, the various FOIA in § 265.3.

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(3) Previously released records. Copies (v) Materials listed in the public of all records, regardless of form or for- index that were created on or after No- mat, that have been released to any vember 1, 1996, will also be available in person pursuant to the FOIA; and that electronic format at the Postal Serv- because of the nature of their subject ice’s Web site at http://about.usps.com/ matter, the Postal Service determines who-we-are/foia/welcome.htm. have become or are likely to become the subject of subsequent requests for § 265.3 Procedure for submitting a substantially the same records; or that FOIA request. have been requested 3 or more times, as (a) To whom submitted. A request well as a general index of such records. must be submitted to the appropriate Records processed and disclosed after FOIA Requester Service Center (RSC). March 31, 1997, are available for inspec- Descriptions of, and contact information and copying at the Headquarters tion for, the various FOIA RSCs can be Library. Any such records created by found at http://about.usps.com/who-we- the Postal Service on or after Novem- are/foia/welcome.htm. For assistance in ber 1, 1996, also will be available at the determining the appropriate FOIA Postal Service’s Web site identified at RSC, requesters may contact the USPS § 265.2(b). Records described in this HQ FOIA Requester Service Center, paragraph that were not created by, or Privacy and Records Office, U.S. Postal on behalf of, the Postal Service gen- Service, 475 L’Enfant Plaza SW., Wash- erally will not be available at the Web ington, DC 20260, telephone (202) 268– site. Records will be available in the 2608. Requests for listings of postal em- form in which they were originally dis- ployee names should also be sent to the closed, except to the extent that they USPS HQ FOIA Requester Service Cen- contain information that is not appro- ter. priate for public disclosure and may be (b) Form of request. A request to in- withheld pursuant to this section. Any spect or to obtain a copy of an identifi- deleted material will be marked and able Postal Service record must be in the applicable exemptions indicated in writing and bear the caption ‘‘Freedom accordance with § 265.6(d). of Information Act Request’’ or otherwise be clearly and prominently identi- (4) Public index. (i) A public index is fied as a request for records pursuant maintained in the Headquarters Li- to the Freedom of Information Act, brary and at the Web site of all final both on the letter and on the envelope opinions and orders made by the Postal or other cover. Requests for records Service in the adjudication of cases, that are labeled incorrectly may be de- Postal Service policy statements which layed in reaching the appropriate FOIA may be relied on as precedents in the RSC. A requester must provide his or disposition of cases, administrative her full name and mailing address. A staff manuals and instructions that af- requester may also provide a daytime fect the public, and other materials telephone number or email address to which the Postal Service elects to facilitate communication regarding his index and make available to the public or her request. on request in the manner set forth in (c) Content of request. Requesters paragraph (b) of this section. must describe the records sought in (ii) The index contains references to sufficient detail to enable Postal Serv- matters issued after July 4, 1967, and ice personnel to locate them with a may reference matters issued prior to reasonable amount of effort. Whenever that date. possible, requesters should include spe- (iii) Any person may arrange for the cific information about each record inspection of any matter in the public sought, such as the type of record (e.g., index in accordance with the proce- contract, report, memorandum, etc.); dures of § 265.3. the title or case number of a specific (iv) Copies of the public index and of document or report; the topic or sub- matters listed in the public index may ject matter; the name of the office, fa- be requested through the procedures cility, functional unit or employees described in § 265.3, with payment of most likely to possess the record; the any applicable fees. geographical location, such as a city

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and state, where the records are improper FOIA request. If after receiv- thought to exist; the date or general ing a request, the Postal Service deter- timeframe of the record’s creation; and mines that it is improper, the Postal any details related to the purpose of Service will inform the requester as to the record. Requests for email records why the request is improper. If the re- should specify the likely senders and quester fails to respond to the Postal recipients, keywords, and a range of Service’s request for clarification or dates. If seeking information about a additional information within 30 cal- company, requesters should provide the endar days, the Postal Service will as- exact name and address of the company sume the requester is no longer inter- (many companies use similar names). ested in pursuing the request and close Before submitting requests, requesters its file. The FOIA Requester Service may contact the relevant Postal Serv- Centers and the FOIA Public Liaisons ice FOIA Requester Service Center to are available to assist requesters in discuss the records they are seeking correcting a request that does not rea- and to receive assistance in describing sonably describe the records sought. the records. The request may state the maximum amount of fees for which the § 265.4 Responsibility for responding requester is willing to accept liability to requests. without prior notice. If no amount is (a) In general. When a request is re- stated, the requester will be deemed ceived, the FOIA RSC will either re- willing to accept liability for fees not spond to the request, or refer the re- to exceed $25.00. See paragraph (e)(2) of quest to the appropriate FOIA RSC or § 265.9.The request may also specify the records custodians. The FOIA RSC will preferred form or format (including advise the requester of any such refer- electronic formats) of the requested ral. The Postal Service, the Office of records. Inspector General of the Postal Serv- (d) A requester First-party requests. ice, and the Postal Inspection Service, who is making a request for records respectively, are responsible for re- about himself must provide sponding to requests they receive for verification of identity sufficient to records they maintain. Records respon- satisfy the component as to his iden- sive to a request ordinarily will include tity prior to release of the record. For only records in the Postal Service’s Privacy Act-protected records, the re- possession as of the date of the search. quester must further comply with the If any other date is used, the Postal procedures set forth in 39 CFR 266.6. Service shall inform the requester of (e) Third-party requests. Where a FOIA that date. A record that is excluded request seeks disclosure of records that pertain to a third party, a requester from the requirements of the FOIA may receive greater access by submit- pursuant to 5 U.S.C. 552(c) is not con- ting a written authorization signed by sidered responsive to the request. that individual authorizing disclosure (b) Authority to grant or deny requests. of the records to the requester, or by The records custodian of the requested submitting proof that the individual is record, or his designee, is authorized to deceased (e.g., a copy of a death certifi- grant or to deny the request. FOIA cate or an obituary). As an exercise of RSC staff may also grant or deny re- administrative discretion, each compo- quests. nent can require a requester to supply (c) Receipt and tracking of requests. a notarized authorization, a declara- FOIA RSCs are responsible for the inition, or other additional information if tial receipt and tracking of FOIA re- necessary in order to verify that a par- quests. ticular individual has consented to dis- (d) Acknowledgments of requests. FOIA closure. RSCs must acknowledge the request in (f) Improper requests. A request that writing and assign it an individualized does not reasonably describe the tracking number if it will take longer records sought, or does not comply than 10 working days to process. The with the published rules regarding the acknowledgement of the request must procedures to be followed for submit- include a brief description of the ting a request, will be deemed to be an records sought to allow requesters to

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more easily keep track of their re- ably be expected to pose an imminent quests. threat to the life or physical safety of an individual; [81 FR 86271, Nov. 30, 2016, as amended at 82 FR 15139, Mar. 27, 2017] (ii) An urgency to inform the public about an actual or alleged Federal Gov- § 265.5 Timing of responses to re- ernment activity, if made by a person quests. who is primarily engaged in dissemi- (a) In general. Requests will ordi- nating information. narily be responded to according to (2) A requester who seeks expedited their order of receipt. A request that is processing must submit a statement, not initially submitted to the appro- certified to be true and correct, ex- priate FOIA RSC will be deemed to plaining in detail the basis for making have been received by the Postal Serv- the request for expedited processing. ice at the time that it is actually re- For example, under paragraph (e)(1)(ii) ceived by the appropriate FOIA RSC or of this section, a requester who is not at the time the request is referred to a full-time member of the news media the appropriate records custodian by a must establish that the requester is a FOIA RSC, but in any case a request person whose primary professional ac- will be deemed to have been received tivity or occupation is information dis- no later than 10 business days after the semination, though it need not be the request is first received by a FOIA requester’s sole occupation. Such a re- RSC. quester also must establish a par- (b) Multitrack processing. (1) Unless ticular urgency to inform the public expedited processing has been granted, about the government activity in- the Postal Service places each request volved in the request—one that extends in simple or complex tracks based on beyond the public’s right to know the amount of work and time involved about government activity generally. in processing the request. Factors con- The existence of numerous articles sidered in assigning a request into the published on a given subject can be complex track may include one or helpful in establishing the requirement more of the following factors: that there be an ‘‘urgency to inform’’ (i) The request involves voluminous the public on the topic. As a matter of documents; administrative discretion, a component (ii) The complexity of the material; may waive the formal certification re- (iii) The request involves record quirement. searches at multiple facilities or loca- (3) A component shall notify the re- tions; quester within 10 calendar days of the (iv) The request requires consulta- receipt of a request for expedited proc- tion among components or other agen- essing of its decision whether to grant cies; or deny expedited processing. If expe- (v) The number of open requests sub- dited processing is granted, the request mitted by the same requester. shall be given priority, placed in the (2) Within each track, the Postal processing track for expedited re- Service processes requests in the order quests, and shall be processed as soon in which they are received. When ap- as practicable. If a request for expe- propriate, the FOIA RSC or the compo- dited processing is denied, any appeal nent will notify the requester if it has of that decision shall be acted on expe- placed the request in the ‘‘Complex’’ ditiously track, and provide the requester with (d) Unusual circumstances. Whenever an opportunity to limit the scope of the statutory time limit for processing the request. If the requester limits the a request cannot be met because of scope of the request, it may result in ‘‘unusual circumstances’’, as defined in faster processing. the FOIA, and the component extends (c) Expedited processing. (1) Requests the time limit on that basis, the com- and appeals shall be processed on an ponent shall, before the expiration of expedited basis whenever it is deter- the 20-day period to respond, notify the mined that they involve: requester in writing of the unusual cir- (i) Circumstances in which the lack cumstances involved and of the date by of expedited processing could reason- which processing of the request can be

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expected to be completed. Where the (c) Content of denial. The denial shall extension exceeds 10 working days, the include, to the extent applicable: component shall, as described by the (1) The name and title or position of FOIA, provide the requester with an the person responsible for the denial; opportunity to modify the request or (2) A brief statement of the reasons arrange an alternative time period for for the denial, including any FOIA ex- processing and alert the requester to emption applied by the component in the availability of the Office of Govern- denying the request; ment Information Services to provide (3) An estimate of the volume of any dispute resolution services. The compo- records or information withheld, such nent shall make available its des- as the number of pages or some other ignated FOIA contact and its FOIA reasonable form of estimation, al- Public Liaison for this purpose. though such an estimate is not re- (e) Aggregating requests. For the pur- quired if the volume is otherwise indi- poses of satisfying unusual cir- cated by deletions marked on records cumstances under the FOIA, the Postal that are disclosed in part or if pro- Service may aggregate requests in viding an estimate would harm an in- cases where it reasonably appears that terest protected by an applicable ex- multiple requests, submitted either by emption; and a single requester or by a group of re- (4) A statement that the denial may questers acting in concert, constitute a be appealed under § 265.8, and a descrip- single request that would otherwise in- tion of the requirements set forth volve unusual circumstances. Multiple therein. requests that involve unrelated mat- (5) A statement notifying the re- ters shall not be aggregated. quester of his or her right to seek dispute resolution services from the FOIA § 265.6 Responses to requests. Public Liaison or the Office of Govern- (a) Grants of requests. Once a compo- ment Information Services. nent makes a determination to grant a (d) Markings on released documents. request in whole or in part, it shall no- Markings on released documents must tify the requester in writing and in- be clearly visible to the requester. clude a statement alerting the re- Records disclosed in part shall be quester of his or her right to seek as- marked to show the amount of infor- sistance from the FOIA Public Liaison. mation deleted and the exemption The component also shall inform the under which the deletion was made un- requester of any fees charged under less doing so would harm an interest § 265.9 and shall disclose the requested protected by an applicable exemption. records to the requester promptly upon The location of the information deleted payment of any applicable fees. shall also be indicated on the record, if (b) Adverse determinations of requests. technically feasible. A component making an adverse deter- (e) Use of record exclusions. (1) In the mination denying a request in any re- event that a component identifies spect shall notify the requester of that records that may be subject to exclu- determination in writing. Adverse de- sion from the requirements of the terminations, or denials of requests, in- FOIA pursuant to 5 U.S.C. 552(c), the clude decisions that: the requested component must confer with Depart- record is exempt, in whole or in part; ment of Justice, Office of Information the request does not reasonably de- Policy (OIP), to obtain approval to scribe the records sought; the informa- apply the exclusion. tion requested is not a record subject to the FOIA; the requested record does § 265.7 Confidential commercial infor- not exist, cannot be located, or has mation obtained from submitters. been destroyed; or the requested record (a) Definitions. (1) Confidential com- is not readily reproducible in the form mercial information means commercial or format sought by the requester. Ad- or financial information obtained by verse determinations also include deni- the Postal Service from a submitter als involving fees or fee waiver matters that may be protected from disclosure or denials of requests for expedited under Exemption 4 of the FOIA, 5 processing. U.S.C. 552(b)(4).

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(2) Submitter means any person or en- or manner reasonably likely to accom- tity, including a corporation, State, or plish it. foreign government, but not including (d) Exceptions to submitter notice re- another Federal Government entity, quirements. The notice requirements of that provides information, either di- this section shall not apply if: rectly or indirectly to the Postal Serv- (1) The Postal Service determines ice. that the information is exempt under (b) Designation of confidential commer- the FOIA or 39 U.S.C. 410(c); cial information. A submitter of con- (2) The information has been lawfully fidential commercial information must published or has been officially made use good faith efforts to designate by available to the public; appropriate markings, either at the (3) Disclosure of the information is time of submission or within a reason- required by a statute other than the able time thereafter, any portion of its FOIA or by a Postal Service regula- submission that it considers to be pro- tion; if disclosure is required by a Post- tected from disclosure under Exemp- al Service regulation and the submitter tion 4. The Postal Service will not de- provided written justification for pro- termine the validity of any request for tection of the information under Ex- confidential treatment until a request emption 4 at the time of submission or for disclosure of the information is re- a reasonable time thereafter, advanced ceived. These designations shall expire written notice of the disclosure must 10 years after the date of the submis- be provided to the submitter; or sion unless the submitter requests and (4) The designation made by the sub- provides justification for a longer des- mitter under paragraph (b) of this sec- ignation period. tion appears obviously frivolous or (c) When notice to submitters is re- overly broad, except that, in such quired. (1) The Postal Service shall cases, the component shall give the promptly provide written notice to a submitter written notice of any final submitter of confidential commercial decision to disclose the information information whenever records con- and must provide that notice within a taining such information are requested reasonable number of days prior to a under the FOIA if, after reviewing the specified disclosure date. request, the responsive records, and (e) Opportunity to object to disclosure. any appeal by the requester, the Postal (1) The Postal Service shall specify a Service determines that it may be re- reasonable time period within which quired to disclose the records, pro- the submitter must respond to the no- vided: tice referenced above. If a submitter (i) The requested information has has any objections to disclosure, it been designated in good faith by the should provide the Postal Service a de- submitter as information considered tailed written statement that specifies protected from disclosure under Ex- all grounds for withholding the par- emption 4; or ticular information under any exemp- (ii) The Postal Service has a reason tion of the FOIA. In order to rely on to believe that the requested informa- Exemption 4 as basis for nondisclosure, tion may be protected from disclosure the submitter must explain why the in- under Exemption 4, but has not yet de- formation constitutes a trade secret or termined whether the information is commercial or financial information protected from disclosure under that that is privileged or confidential. exemption or any other applicable ex- Whenever possible, the submitter’s emption. claim of confidentiality should be sup- (2) The notice shall either describe ported by a statement or certification the commercial information requested by an officer or authorized representa- or include a copy of the requested tive of the submitter that the informa- records or portions of records con- tion in question is in fact confidential, taining the information. In cases in- has not been disclosed to the public by volving a voluminous number of sub- the submitter, and is not routinely mitters, notice may be made by post- available to the public from other ing or publishing the notice in a place sources.

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(2) A submitter who fails to respond § 265.8 Administrative appeals. within the time period specified in the (a) Requirements for making an appeal. notice shall be considered to have no Requesters may appeal adverse deci- objection to disclosure of the informa- sions rendered by the Postal Inspection tion. Information received by the Post- Service or any Postal Service compo- al Service after the date of any disclo- nent by mail to the General Counsel, sure decision shall not be considered by U.S. Postal Service, 475 L’Enfant Plaza the Postal Service. Any information SW., Washington, DC 20260; or by email provided by a submitter under this sub- to [email protected]. The requester part may itself be subject to disclosure must make the appeal in writing and under the FOIA. The Postal Service to be considered timely it must be must consider a submitter’s objections postmarked, or in the case of elec- and specific grounds for nondisclosure tronic submissions, transmitted, within deciding whether to disclose the re- in 90 calendar days after the date of the quested information. response; or within a reasonable time if (f) Determination that confidential the appeal is from a failure of the cus- treatment is warranted. If the Postal todian to act. The General Counsel Service determines that confidential may, in his or her discretion, consider treatment is warranted for any part of late appeals. In the event of the denial of a request or of other action or fail- the requested records and that the ure to act on the part of a custodian records will therefore be redacted or from which no appeal is taken, the withheld, it must inform the requester General Counsel may, if he or she con- in writing, and must advise the re- siders that there is doubt as to the cor- quester of the right to appeal. A copy rectness of the custodian’s action or of the letter of denial must also be pro- failure to act, review the action or fail- vided to the submitter of the records in ure to act as though an appeal pursu- any case in which the submitter had ant to this section had been taken. A been notified of the request. letter of appeal should include, as ap- (g) Notice of intent to disclose. If the plicable: Postal Service decides to disclose in- (1) A copy of the request, of any noti- formation over the objection of a sub- fication of denial or other action, and mitter, the Postal Service shall proof any other related correspondence; vide the submitter written notice, (2) The FOIA tracking number as- which shall include: signed to the request; (1) A statement of the reasons why (3) A statement of the action, or fail- each of the submitter’s disclosure ob- ure to act, from which the appeal is jections was not sustained; taken; (2) A description or copy of the infor- (4) A statement identifying the spe- mation to be disclosed; and cific redactions to responsive records (3) A specified disclosure date, which that the requester is challenging; (5) A statement of the relief sought; shall be a reasonable time subsequent and to the notice. (6) A statement of the reasons why (h) Notice of FOIA lawsuit. Whenever a the requester believes the action or requester files a lawsuit seeking to failure to act is erroneous. compel the disclosure of confidential (b) Adjudication of appeals. (1) The de- commercial information, the compo- cision of the General Counsel or his or nent shall promptly notify the sub- her designee constitutes the final deci- mitter. Whenever a submitter files a sion of the Postal Service on the issue lawsuit to prevent disclosure of con- being appealed. The General Counsel fidential commercial information, the will give prompt consideration to an component shall promptly notify the appeal for expedited processing of a re- requester. quest. All other decisions normally will (i) Requester notification. The Postal be made within 20 working days from Service shall notify a requester when- the time of the receipt by the General ever it notifies the submitter of its in- Counsel. The 20-day response period tent to disclose the requested informa- may be extended by the General Coun- tion. sel, or his or her designee, for a period

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not to exceed an additional 10 working OMB Guidelines. In order to resolve days when reasonably necessary to per- any fee issues that arise under this sec- mit the proper consideration of an ap- tion, a component may contact a repeal, under one or more of the unusual quester for additional information. The circumstances set forth in paragraph Postal Service will conduct searches, (a)(5) of this section. The aggregate review, and duplication in the most ef- number of additional working days uti- ficient and the least expensive manner. lized, however, may not exceed 10 The Postal Service ordinarily will col- working days. lect all applicable fees before sending (2) An appeal ordinarily will not be copies of records to a requester. Re- adjudicated if the request becomes a questers must pay fees by check or matter of FOIA litigation. money order made payable to ‘‘U.S. (3) On receipt of any appeal, the Gen- Postal Service.’’ eral Counsel, or his or her designee, (b) Definitions. For purposes of this must take appropriate action to ensure section: compliance with applicable classifica- (1) Commercial-use requester is a re- tion rules. quester who asks for information for a (c) Decisions on appeals. A decision on use or a purpose that furthers a com- an appeal must be made in writing. A mercial, trade, or profit interest, which decision that upholds a component’s can include furthering those interests determination in whole or in part will through litigation. The Postal Serv- contain a statement that identifies the ice’s decision to place a requester in reasons for the affirmance, including the commercial use category will be any FOIA exemptions applied. The de- made on a case-by-case basis based on cision will provide the requester with the requester’s intended use of the in- notification of the statutory right to formation. file a lawsuit and will inform the re- (2) Direct costs are those expenses quester of the mediation services of- that the Postal Service incurs in fered by the Office of Government In- searching for and duplicating records formation Services of the National Ar- in order to respond to a FOIA request. chives and Records Administration as a In the case of commercial-use request- non-exclusive alternative to litigation. ers, direct costs include reviewing and If a custodian’s decision is remanded or taking all other measures needed to modified on appeal, the requester will prepare the records for disclosure. be notified of that determination in (3) Search is the process of looking for writing. The component will further and retrieving records or information process the request in accordance with responsive to a request. Search time that appeal determination and respond includes page-by-page or line-by-line directly to the requester. If not prohib- identification of information within ited by or under law, the General Coun- records and the reasonable efforts ex- sel, or his designee may direct the dis- pended to locate and retrieve informa- closure of a record even though its dis- tion from electronic records. closure is not required by law or regu- (4) Duplication is reproducing a copy lation. of a record, or of the information con- (d) When appeal is required. Before tained in it, necessary to respond to a seeking judicial review of a compo- FOIA request. Copies can take the form nent’s adverse determination, a re- of paper, audiovisual materials, or quester generally must first submit a electronic records, among others. timely administrative appeal. (5) Review is the examination of a (e) Appeal procedures for the Office of record located in response to a request the Inspector General. The appeal proce- in order to determine whether any por- dures for the Office of the Inspector tion of it is exempt from disclosure. General are described in 39 CFR 230.5. Review time includes processing any record for disclosure, such as doing all § 265.9 Fees. that is necessary to prepare the record (a) In general. The Postal Service for disclosure, including the process of shall charge for processing requests redacting the record and marking the under the FOIA in accordance with the appropriate exemptions. Review costs provisions of this section and with the are properly charged even if a record

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ultimately is not disclosed. Review ‘‘Freelance’’ journalists who dem- time also includes time spent both ob- onstrate a solid basis for expecting taining and considering any formal ob- publication through a news media enti- jection to disclosure made by a con- ty shall be considered as a representa- fidential commercial information sub- tive of the news media. A publishing mitter under § 265.6, but it does not in- contract would provide the clearest clude time spent resolving general evidence that publication is expected; legal or policy issues regarding the ap- however, the Postal Service shall also plication of exemptions. consider a requester’s past publication (6) Educational institution is any record in making this determination. school that operates a program of (c) Charging fees. In responding to scholarly research. A requester in this FOIA requests, the Postal Service shall fee category must show that the re- charge the following fees unless a waiv- quest is authorized by, and is made er or reduction of fees has been granted under the auspices of, an educational under paragraph (j) of this section. Be- institution and that the records are not cause the fee amounts provided below sought for a commercial use, but rath- already account for the direct costs as- er are sought to further scholarly re- sociated with a given fee type, compo- search. To fall within this fee category, nents should not add any additional the request must serve the scholarly costs to charges calculated under this research goals of the institution rather section. than an individual research goal. (1) Search. (i) Requests made by edu- (7) Noncommercial scientific institution cational institutions, noncommercial is an institution that is not operated scientific institutions, or representa- on a ‘‘commercial’’ basis, as defined in tives of the news media are not subject paragraph (b)(1) of this section and to search fees. Search fees shall be that is operated solely for the purpose charged for all other requesters, sub- of conducting scientific research the ject to the restrictions of paragraph (d) results of which are not intended to of this section. The Postal Service may promote any particular product or in- charge for time spent searching even if dustry. A requester in this category no responsive records are located or if must show that the request is author- it determines that the records are en- ized by and is made under the auspices tirely exempt from disclosure. of a qualifying institution and that the (ii) For each half hour spent by per- records are sought to further scientific sonnel searching for requested records, research and are not for a commercial including electronic searches that do use. not require new programming, the fee (8) Representative of the news media is shall be $21.00. any person or entity that gathers in- (iii) Requesters shall be charged the formation of potential interest to a direct costs associated with conducting segment of the public, uses its editorial any search that requires the creation skills to turn the raw materials into a of a new computer program to locate distinct work, and distributes that the requested records. Requesters shall work to an audience. The term news be notified of the costs associated with means information that is about cur- creating such a program and must rent events or that would be of current agree to pay the associated costs before interest to the public. Examples of the costs may be incurred. news media entities include television (iv) For requests that require the re- or radio stations that broadcast trieval of records stored at a Federal ‘‘news’’ to the public at large and pub- records center operated by the Na- lishers of periodicals that disseminate tional Archives and Records Adminis- ‘‘news’’ and make their products avail- tration (NARA), or other storage facil- able through a variety of means to the ity, additional costs may be charged general public, including news organi- for their retrieval. zations that disseminate solely on the (2) Duplication. Duplication fees shall Internet. A request for records sup- be charged to all requesters, subject to porting the news-dissemination func- the restrictions of paragraph (d) of this tion of the requester shall not be con- section. A component shall honor a re- sidered to be for a commercial use. quester’s preference for receiving a

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record in a particular form or format the component has an additional 10 where it is readily reproducible by the days to respond to the request. component in the form or format re- (iii) If a component has determined quested. Where photocopies are sup- that unusual circumstances as defined plied, the component shall provide one by the FOIA apply and more than 5,000 copy per request at a cost of fifteen pages are necessary to respond to the cents per page. For copies of records request, the component may charge produced on tapes, disks, or other search fees, or, in the case of request- media, components shall charge the di- ers described in paragraph (d)(1) of this rect costs of producing the copy, in- section, may charge duplication fees if cluding operator time. Where paper the following steps are taken: documents must be scanned in order to (A) The component provides timely comply with a requester’s preference to written notice of unusual cir- receive the records in an electronic for- cumstances to the requester; and mat, the requester shall pay the direct (B) The component discussed or made costs associated with scanning those three good faith attempts to discuss materials. For other forms of duplica- via mail, email, or telephone how the tion, components shall charge the di- requester could effectively limit the rect costs. scope of the request in accordance with (3) Review. Commercial-use request- 5 U.S.C. 552(a)(6)(B)(ii). ers shall be charged review fees. Re- (iv) If a court has determined that view fees shall be assessed in connec- exceptional circumstances exist, a fail- tion with the initial review of the ure to comply with the time limits record, i.e., the review conducted by a shall be excused for the length of time component to determine whether an provided by the court order. exemption applies to a particular (3) No search or review fees will be record or portion of a record. No charge charged for a quarter-hour period un- will be made for review at the adminis- less more than half of that period is re- trative appeal stage of exemptions ap- quired for search or review. plied at the initial review stage. How- (4) Except for requesters seeking ever, if a particular exemption is records for a commercial use, compo- deemed to no longer apply, any costs nents shall provide without charge: associated with a component’s re-re- (i) The first 100 pages of duplication view of the records in order to consider (or the cost equivalent for other the use of other exemptions may be as- media); and sessed as review fees. Review fees shall (ii) The first two hours of search. be charged at the same rates as those (5) When, after first deducting the 100 charged for a search under paragraph free pages (or its cost equivalent) and (c)(1)(ii) of this section. the first two hours of search, a total (d) Restrictions on charging fees. (1) No fee calculated under paragraph (c) of search fees will be charged for requests this section is $25.00 or less for any re- by educational institutions (unless the quest, no fee will be charged. records are sought for a commercial (e) Notice of anticipated fees in excess use), noncommercial scientific institu- of $25.00. (1) When a component deter- tions, or representatives of the news mines or estimates that the fees to be media. assessed in accordance with this sec- (2)(i) If a component fails to comply tion will exceed $25.00, the component with the time limits in which to re- shall notify the requester of the actual spond to a request, it may not charge or estimated amount of the fees, in- search fees, or, in the instances of re- cluding a breakdown of the fees for quests from requesters described in search, review or duplication, unless paragraph (d)(1) of this section, may the requester has indicated a willing- not charge duplication fees. ness to pay fees as high as those antici- (ii) If a component has determined pated. If only a portion of the fee can that unusual circumstances as defined be estimated readily, the component by the FOIA apply and the component shall advise the requester accordingly. provided timely written notice to the If the requester is a noncommercial use requester in accordance with the FOIA, requester, the notice shall specify that

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the requester is entitled to the statu- tempting to divide a single request into tory entitlements of 100 pages of dupli- a series of requests for the purpose of cation at no charge and, if the re- avoiding fees, or that a requester or quester is charged search fees, two group of requesters acting in concert hours of search time at no charge, and makes multiple requests for the same shall advise the requester whether records maintained at multiple facili- those entitlements have been provided. ties or components, the Postal Service (2) In cases in which a requester has may aggregate those requests and been notified that the actual or esti- charge accordingly. Multiple FOIA re- mated fees are in excess of $25.00, the quests by a single requester related to request shall not be considered re- the same issue will be aggregated for ceived and further work will not be the purpose of assessing fees. Multiple completed until the requester agrees in requests involving unrelated matters writing to pay the actual or estimated shall not be aggregated. total fee, or designates some amount of (h) Advance payments. (1) For requests fees the requester is willing to pay, or other than those described in para- in the case of a noncommercial use re- graphs (h)(2) or (3) of this section, a quester who has not yet been provided component shall not require the re- with the requester’s statutory entitle- quester to submit an advance payment ments, designates that the requester before work is commenced or contin- seeks only that which can be provided ued on a request. Payment owed for by the statutory entitlements. Compo- work already completed (i.e., payment nents are not required to accept pay- before copies are sent to a requester) is ments in installments. not an advance payment. (3) If the requester has indicated a (2) When a component determines or willingness to pay some designated estimates that a total fee to be charged amount of fees, but the component es- under this section will exceed $250.00, it timates that the total fee will exceed may require that the requester make that amount, the component shall toll an advance payment up to the amount the processing of the request when it of the entire anticipated fee before be- notifies the requester of the estimated ginning to process the request. A com- fees in excess of the amount the re- ponent may elect to process the requester has indicated a willingness to quest prior to collecting fees when it pay. The component shall inquire receives a satisfactory assurance of full whether the requester wishes to revise payment from a requester with a his- the amount of fees the requester is tory of prompt payment. willing to pay or modify the request. (3) Where a requester has previously Once the requester responds, the time failed to pay a properly charged FOIA to respond will resume from where it fee within 30 calendar days of the bill- was at the date of the notification. ing date, a component may require (4) Components shall make available that the requester pay the full amount their FOIA Public Liaison or other due on that prior request, and the com- FOIA contact to assist any requester in ponent may require that the requester reformulating a request to meet the re- make an advance payment of the full quester’s needs at a lower cost. amount of any anticipated fee before (f) Charges for other services. Although the component begins to process a new not required to provide special serv- request or continues to process a pend- ices, if a component chooses to do so as ing request or any pending appeal. a matter of administrative discretion, Where a component has a reasonable the direct costs of providing the service basis to believe that a requester has requested by the requester shall be misrepresented the requester’s identity charged. Examples of such services in- in order to avoid paying outstanding clude providing multiple copies of the fees, it may require that the requester same document, or sending records by provide proof of identity. means other than first class mail. (4) In cases in which a component re- (g) Aggregating requests. In instances quires advance payment, the request where the Postal Service reasonably shall not be considered received and believes that a requester or a group of further work will not be completed requesters acting in concert is at- until the required payment is received.

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If the requester does not pay the ad- would be added to the public’s under- vance payment within 30 calendar days standing. after the date of the component’s fee (iii) The disclosure must contribute determination, the request will be ad- to the understanding of a reasonably ministratively closed. broad audience of persons interested in (i) Other statutes specifically providing the subject, as opposed to the indi- for fees. The fee schedule of this section vidual understanding of the requester. does not apply to fees charged under A requester’s expertise in the subject any statute that specifically requires area as well as the requester’s ability the Postal Service to set and collect and intention to effectively convey in- fees for particular types of records. In formation to the public shall be consid- instances where records responsive to a ered. A representative of the news request are subject to a statutorily- media does not automatically satisfy based fee schedule program, the compo- this consideration. nent shall inform the requester of the (iv) The public’s understanding of the contact information for that program. subject in question must be enhanced (j) Requirements for waiver or reduction by the disclosure to a significant ex- of fees. (1) Records responsive to a re- tent. quest shall be furnished without charge (3) To determine whether disclosure or at a reduced rate below the rate es- of the requested information is pri- tablished under paragraph (c) of this marily in the commercial interest of section, where a component deter- the requester, components shall con- mines, based on all available informa- sider the following factors: tion, that the requester has dem- (i) Components shall identify any onstrated that: commercial interest of the requester, (i) Disclosure of the requested infor- as defined in paragraph (b)(1) of this mation is in the public interest because section, that would be furthered by the it is likely to contribute significantly requested disclosure. Requesters shall to public understanding of the oper- be given an opportunity to provide ex- ations or activities of the Postal Serv- planatory information regarding this ice, and consideration. (ii) Disclosure of the information is (ii) Disclosure to data brokers or oth- not primarily in the commercial inter- ers who merely compile and market est of the requester. government information for direct eco- (2) In deciding whether disclosure of nomic return shall not be presumed to the requested information is in the primarily serve the public interest. public interest because it is likely to (4) Where only some of the records to contribute significantly to public un- be released satisfy the requirements for derstanding of operations or activities a waiver of fees, a waiver shall be of the Postal Service, components shall granted for those records. consider all four of the following fac- (5) Requests for a waiver or reduction tors: of fees should be made when the re- (i) The subject of the request must quest is first submitted to the compo- concern identifiable operations or ac- nent and should address the criteria tivities of the Postal Service, with a referenced above. A requester may sub- connection that is direct and clear, not mit a fee waiver request at a later time remote or attenuated. so long as the underlying record re- (ii) Disclosure of the requested quest is pending or on administrative records must be meaningfully inform- appeal. When a requester who has com- ative about government operations or mitted to pay fees subsequently asks activities in order to be ‘‘likely to con- for a waiver of those fees and that tribute’’ to an increased public under- waiver is denied, the requester shall be standing of those operations or activi- required to pay any costs incurred up ties. The disclosure of information that to the date the fee waiver request was already is in the public domain, in ei- received. ther the same or a substantially iden- [81 FR 86271, Nov. 30, 2016, as amended at 82 tical form, would not contribute to FR 2896, Jan. 10, 2017; 82 FR 12921, Mar. 8, such understanding where nothing new 2017]

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Subpart B—Production or Disclo- from a non-Federal source for medical sure in Federal and State Pro- information: ceedings (A) If, in the opinion of a Federal medical officer, the medical informa- § 265.11 Compliance with subpoena tion indicates the existence of a malig- duces tecum, court orders, and nancy, a mental condition, or other summonses. condition about which a prudent physi- (a) Compliance with subpoena duces cian would hesitate to inform a person tecum. (1) Except as required by Part suffering from such a condition as to 262, produce other records of the Postal its exact nature and probable outcome, Service only in compliance with a sub- do not release the medical information poena duces tecum or appropriate to the employee or to any individual court order. designated by him, except to a physi- (2) Time, leave, and payroll records of cian, designated by the employee in postal employees are subject to produc- writing. If a subpoena or court order tion when a subpoena duces tecum or was issued, the responding official shall appropriate court order has been prop- caution the moving party as to the pos- erly served. The custodian of the sible dangers involved if the medical records may designate a postal em- information is divulged. ployee to present the records. The pres- (B) If, in the opinion of a Federal entation by a designee rather than the medical officer, the medical informa- employee named in the subpoena or tion does not indicate the presence of court order must meet with the ap- any condition which would cause a pru- proval of the attorneys for each side. In dent physician to hesitate to inform a addition, such records may be released person of the exact nature and probable if authorized in writing by the em- outcome of his condition, release it in ployee. response to a subpoena or court order, (3) If the subpoena involves a job-con- or to the employee or to any person, nected injury, the records are under firm, or organization he authorizes in the exclusive jurisdiction of the Office writing. of Workers’ Compensation Programs, (C) If a Federal medical officer is not Department of Labor. Requests for au- available, refer the request to the Civil thorization to produce these records Service Commission regional office shall be addressed to: Office of Work- with the medical certificates or other ers’ Compensation Programs, U.S. De- medical reports concerned. partment of Labor, Washington, DC (5) Do not release any records con- 20210–0001. Also notify the attorney re- taining information as to the employ- sponsible for the issuance of the sub- ee’s security or loyalty. poena or court order. (6) Honor subpoenas or court orders (4) Employee medical records are pri- only when disclosure is authorized. marily under the exclusive jurisdiction (7) When authorized to comply with a of the U.S. Civil Service Commission. subpoena duces tecum, do not leave the The Commission has delegated author- original records with the court. ity to the Postal Service and to the (b) [Reserved] Commission’s Regional Directors to release medical information, in response § 265.12 Demands for testimony or to proper requests and upon competent records in certain legal pro- medical advice, in accordance with the ceedings. following criteria: (a) Scope and applicability of this sec- (i) Except in response to a subpoena tion. (1) This section establishes proce- or court order, do not release any med- dures to be followed if the Postal Serv- ical information about an employee to ice or any Postal Service employee re- any non-Federal entity or individual ceives a demand for testimony con- without authorization from the em- cerning or disclosure of: ployee. (i) Records contained in the files of (ii) With authorization from the em- the Postal Service; ployee, the Area, Information Systems (ii) Information relating to records Service Center, or Chief Field Counsel contained in the files of the Postal will respond as follows to a request Service; or

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(iii) Information or records acquired (ii) A legislative proceeding, except or produced by the employee in the for a proceeding before either House of course of his or her official duties or Congress or before any committee or because of the employee’s official sta- subcommittee of Congress; or tus. (iii) An administrative proceeding. (2) This section does not create any (6) Private litigation means a legal right or benefit, substantive or proce- proceeding to which the United States dural, enforceable by any person is not a party. against the Postal Service. (7) Records custodian means the em- (3) This section does not apply to any ployee who maintains a requested of the following: record. For assistance in identifying (i) Any legal proceeding in which the the custodian of a specific record, con- United States is a party; tact the Manager, Records Office, U.S. (ii) A demand for testimony or Postal Service, 475 L’Enfant Plaza SW., records made by either House of Con- Washington, DC 20260, telephone (202) gress or, to the extent of matter within 268–2608. its jurisdiction, any committee or sub- (8) Testimony means statements made committee of Congress; in connection with a legal proceeding, (iii) An appearance by an employee including but not limited to state- in his or her private capacity in a legal ments in court or other forums, deposi- proceeding in which the employee’s tions, declarations, affidavits, or re- testimony does not relate to the em- sponses to interrogatories. ployee’s official duties or the functions (9) United States means the federal of the Postal Service; or government of the United States and (iv) A demand for testimony or any of its agencies, establishments, or records submitted to the Postal Inspec- instrumentalities, including the United tion Service (a demand for Inspection States Postal Service. Service records or testimony will be (c) Requirements for submitting a de- handled in accordance with rules in mand for testimony or records. (1) Ordi- § 265.13). narily, a party seeking to obtain records from the Postal Service should (4) This section does not exempt a resubmit a request in accordance with quest from applicable confidentiality the provisions of the Freedom of Infor- requirements, including the require- mation Act (FOIA), 5 U.S.C. 552, and ments of the Privacy Act, 5 U.S.C. 552a. the Postal Service’s regulations imple- (b) Definitions. The following defini- menting the FOIA at 39 CFR 265.1 tions apply to this section: through 265.9, 265.14; or the Privacy (1) Adjudicative authority includes, Act, 5 U.S.C. 552a and the Postal Serv- but is not limited to, the following: ice’s regulations implementing the Pri- (i) A court of law or other judicial fo- vacy Act at 39 CFR 266.1 through 266.10. rums, whether local, state, or federal; (2) A demand for testimony or and records issued pursuant to the rules (ii) Mediation, arbitration, or other governing the legal proceeding in forums for dispute resolution. which the demand arises must: (2) Demand includes a subpoena, sub- (i) Be in writing; poena duces tecum, request, order, or (ii) Identify the requested record and/ other notice for testimony or records or state the nature of the requested arising in a legal proceeding. testimony, describe the relevance of (3) Employee means a current em- the record or testimony to the pro- ployee or official of the Postal Service. ceeding, and why the information (4) General Counsel means the General sought is unavailable by any other Counsel of the United States Postal means; and Service, the Chief Field Counsels, or an (iii) If testimony is requested, con- employee of the Postal Service acting tain a summary of the requested testi- for the General Counsel under a delega- mony and a showing that no document tion of authority. could be provided and used in lieu of (5) Legal proceeding means: testimony. (i) A proceeding before an adjudica- (3) Procedures for service of demand tive authority; are made as follows:

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(i) Service of a demand for testimony ter in which the demand arises and or records (including, but not limited other applicable laws, privileges, rules, to, personnel or payroll information) authority, and regulations; and relating to a current or former em- (B) Would not be contrary to the in- ployee must be made in accordance terest of the United States. The inter- with the applicable rules of civil proce- est of the United States includes, but is dure on the employee whose testimony not limited to, furthering a public in- is requested or the records custodian. terest of the Postal Service and pro- The requester also shall deliver a copy tecting the human and financial re- of the demand to the District Manager, sources of the United States. Customer Services and Sales, for all (ii) An employee’s testimony shall be current employees whose work location limited to the information set forth in is within the geographic boundaries of the statement described at paragraph the manager’s district, and any former (c)(2) of this section or to such portions employee whose last position was with- thereof as the General Counsel deter- in the geographic boundaries of the mines are not subject to objection. An manager’s district. A demand for testi- employee’s testimony shall be limited mony or records must be received by to facts within the personal knowledge the employee whose testimony is re- of the employee. A Postal Service em- quested and the appropriate District ployee authorized to give testimony Manager, Customer Services and Sales, under this rule is prohibited from giv- at least ten (10) working days before ing expert or opinion testimony, an- the date the testimony or records are swering hypothetical or speculative needed. questions, or giving testimony with re- (ii) Service of a demand for testi- spect to privileged subject matter. The mony or records other than those de- General Counsel may waive the prohi- scribed in paragraph (c)(3)(i) of this bition of expert testimony under this section must be made in accordance paragraph only upon application and with the applicable rules of civil proce- showing of exceptional circumstances dure on the employee whose testimony and the request substantially meets is requested or the records custodian. the requirements of this section. The requester also shall deliver a copy (4) The General Counsel may estab- of the demand to the General Counsel, lish conditions under which the em- United States Postal Service, 475 ployee may testify. If the General L’Enfant Plaza SW., Washington DC Counsel authorizes the testimony of an 20260–1100, or the Chief Field Counsel. A employee, the party seeking testimony demand for testimony or records must shall make arrangements for the tak- be received by the employee and the ing of testimony by those methods General Counsel or Chief Field Counsel that, in the General Counsel’s view, at least ten (10) working days before will least disrupt the employee’s offi- the date testimony or records are need- cial duties. For example, at the Gen- ed. eral Counsel’s discretion, testimony (d) Procedures followed in response to a may be provided by affidavits, answers demand for testimony or records. (1) After to interrogatories, written depositions, an employee receives a demand for tes- or depositions transcribed, recorded, or timony or records, the employee shall preserved by any other means allow- immediately notify the General Coun- able by law. sel or Chief Field Counsel and request (5) If a response to a demand for tes- instructions. timony or records is required before (2) An employee may not give testi- the General Counsel determines wheth- mony or produce records without the er to allow an employee to testify, the prior authorization of the General employee or counsel for the employee Counsel. shall do the following: (3)(i) The General Counsel may allow (i) Inform the court or other author- an employee to testify or produce ity of the regulations in this section; records if the General Counsel deter- and mines that granting permission: (ii) Request that the demand be (A) Would be appropriate under the stayed pending the employee’s receipt rules of procedure governing the mat- of the General Counsel’s instructions.

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(6) If the court or other authority de- employee designated by the Postal clines the request for a stay, or rules Service), the General Counsel may per- that the employee must comply with mit testimony by a named Postal Serv- the demand regardless of the General ice employee. Counsel’s instructions, the employee or (g) Fees and costs. (1) The Postal Serv- counsel for the employee shall respect- ice may charge fees, not to exceed ac- fully decline to comply with the de- tual costs, to private litigants seeking mand, citing United States ex rel. Touhy testimony or records by request or de- v. Ragen, 340 U.S. 462 (1951), and the mand. The fees, which are to be cal- regulations in this section. culated to reimburse fully the Postal (7) The General Counsel may request Service for processing the demand and the assistance of the Department of providing the witness or records, may Justice or a U.S. Attorney where nec- include, among others: essary to represent the interests of the (i) Costs of time spent by employees, Postal Service and the employee. including attorneys, of the Postal (8) At his or her discretion, the Gen- Service to process and respond to the eral Counsel may grant a waiver of any demand; procedure described by this section, (ii) Costs of attendance of the em- where waiver is considered necessary ployee and agency attorney at any dep- to promote a significant interest of the osition, hearing, or trial; United States or for other good cause. (iii) Travel costs of the employee and (9) If it otherwise is permissible, the agency attorney; records custodian may authenticate, (iv) Costs of materials and equipment upon the request of the party seeking used to search for, process, and make disclosure, copies of the records. No available information. employee of the Postal Service shall (2) All costs for employee time shall respond in strict compliance with the be calculated on the hourly pay of the terms of a subpoena duces tecum un- employee (including all pay, allowance, less specifically authorized by the Gen- and benefits) and shall include the eral Counsel. hourly fee for each hour, or portion of (e) Postal Service employees as expert each hour, when the employee is in witnesses. No Postal Service employee travel, in attendance at a deposition, may testify as an expert or opinion hearing, or trial, or is processing or re- witness, with regard to any matter sponding to a request or demand. (3) At the discretion of the Postal arising out of the employee’s official Service, where appropriate, costs may duties or the functions of the Postal be estimated and collected before testi- Service, for any party other than the mony is given. United States, except that in extraor- (h) Acceptance of service. This section dinary circumstances, the General does not in any way abrogate or modify Counsel may approve such expert testi- the requirements of the Federal Rules mony in private litigation. A Postal of Civil Procedure (28 U.S.C. Appendix) Service employee may not testify as regarding service of process. such an expert witness without the express authorization of the General § 265.13 Compliance with subpoenas, Counsel. A litigant must obtain au- summonses, and court orders by thorization of the General Counsel be- postal employees within the Postal fore designating a Postal Service em- Inspection Service where the Postal ployee as an expert witness. Service, the United States, or any (f) Substitution of Postal Service em- other Federal agency is not a party. ployees. Although a demand for testi- (a) Applicability of this section. The mony may be directed to a named rules in this section apply to all fed- Postal Service employee, the General eral, state, and local court proceedings, Counsel, where appropriate, may des- as well as administrative and legisla- ignate another Postal Service em- tive proceedings, other than: ployee to give testimony. Upon request (1) Proceedings where the United and for good cause shown (for example, States, the Postal Service, or any when a particular Postal Service em- other Federal agency is a party; ployee has direct knowledge of a mate- (2) Congressional requests or sub- rial fact not known to the substitute poenas for testimony or documents;

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(3) Consultative services and tech- and diary entries, graphs, notes, nical assistance rendered by the In- charts, tabulations, data analyses, sta- spection Service in executing its nor- tistical or information accumulations, mal functions; records of meetings and conversations, (4) Employees serving as expert wit- film impressions, magnetic tapes, com- nesses in connection with professional puter discs, and sound or mechanical and consultative services under 5 CFR reproductions; part 7001, provided that employees act- (5) Employee or Inspection Service em- ing in this capacity must state for the ployee, for the purpose of this section record that their testimony reflects only, refers to a Postal Service em- their personal opinions and should not ployee currently or formerly assigned be viewed as the official position of the to the Postal Inspection Service, stu- Postal Service; dent interns, contractors and employ- (5) Employees making appearances in ees of contractors who have access to their private capacities in proceedings Inspection Service information and that do not relate to the Postal Service records. (e.g., cases arising from traffic acci- (6) Inspection Service means the orga- dents, domestic relations) and do not nizational unit within the Postal Serv- involve professional or consultative ice that performs the functions speci- services; and fied in part 233 of this chapter. (6) When in the opinion of the Coun- (7) Inspection Service Legal Counsel is sel or the Counsel’s designee, Office of an attorney authorized by the Chief the Chief Postal Inspector, it has been Postal Inspector to give legal advice to determined that it is in the best inter- members of the Inspection Service. est of the Inspection Service or in the (8) Inspection Service Manual is the di- public interest. rective containing the standard oper- (b) Purpose and scope. The provisions ating procedures for Postal Inspectors in this section limit the participation and certain Inspection Service employ- of postal employees within or assigned ees. to the Inspection Service, in private (9) Nonpublic includes any material or litigation, and other proceedings in information not subject to mandatory which the Postal Service, the United public disclosure under § 265.14(b). States, or any other federal agency is (10) Official case file means official not a party. The rules are intended to documents that relate to a particular promote the careful supervision of In- case or investigation. These documents spection Service resources and to re- may be kept at any location and do not duce the risk of inappropriate disclo- necessarily have to be in the same lo- sures that might affect postal oper- cation in order to constitute the file. ations. (11) Postal Inspector reports include all (c) Definitions. For the purposes of written reports, letters, recordings, or this section: other memorializations made in con- (1) Authorizing official is the person junction with the duties of a Postal In- responsible for giving the authoriza- spector. tion for release of documents or per- (12) Testify or testimony includes both mission to testify. in-person oral statements before any (2) Case or matter means any civil pro- body conducting a judicial or adminis- ceeding before a court of law, administrative proceeding and statements trative board, hearing officer, or other made in depositions, answers to inter- body conducting a judicial or adminis- rogatories, declarations, affidavits, or trative proceeding in which the United other similar documents. States, the Postal Service, or another (13) Third-party action means an ac- federal agency is not a named party. tion, judicial or administrative, in (3) Demand includes any request, which the United States, the Postal order, or subpoena for testimony or the Service, or any other federal agency is production of documents. not a named party. (4) Document means all records, pa- (d) Policy. (1) No current or former pers, or official files, including, but not employee within the Inspection Service limited to, official letters, telegrams, may testify or produce documents con- memoranda, reports, studies, calendar cerning information acquired in the

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course of employment or as a result of uments and shall not be released unless his or her relationship with the Postal there is specific authorization by the Service in any proceeding to which this Chief Postal Inspector or the Inspector section applies (see paragraph (a) of in Charge of the affected field Division, this section), unless authorized to do after consulting with Inspection Serv- so. Authorization will be provided by: ice legal counsel. (i) The Postal Inspector in Charge of (6) The Inspection Service Manual the affected field Division, or designee, and other operating instructions issued for Division personnel and records, to Inspection Service employees are after that official has determined considered to be confidential and shall through consultation with Inspection not be released unless there is specific Service legal counsel that no legal ob- authorization, after consultation with jection, privilege, or exemption applies Inspection Service legal counsel. If the to such testimony or production of doc- requested information relates to con- uments. fidential investigative techniques, or (ii) The Chief Postal Inspector or des- release of the information would ad- ignee for Headquarters employees and versely affect the law enforcement mis- records, after that official has deter- sion of the Inspection Service, the sub- mined through consultation with In- poenaed official, through Inspection spection Service legal counsel, that no Service legal counsel, may request an legal objection, privilege, or exemption in camera, ex parte conference to deter- applies to such testimony or produc- mine the necessity for the release of tion of documents. the information. The entire Manual (2) Consideration shall be given to: should not be given to any party. (i) Statutory restrictions, as well as (7) Notes, memoranda, reports, tran- any legal objection, exemption, or scriptions, whether written or recorded privilege that may apply; and made pursuant to an official inves- (ii) Relevant legal standards for dis- tigation conducted by a member of the closure of nonpublic information and Inspection Service, are the property of documents; the Inspection Service and are part of (iii) Inspection Service rules and reg- the official case file, whether stored ulations and the public interest; with the official file. (iv) Conservation of employee time; (f) Compliance with summonses and and subpoenas ad testificandum. (1) If an In- (v) Prevention of the expenditure of spection Service employee is served Postal Service resources for private with a third-party summons or a sub- purposes. poena requiring an appearance in (3) If additional information is nec- court, contact should be made with In- essary before a determination can be spection Service legal counsel to deter- made, the authorizing official may, in mine whether and which exemptions or coordination with Inspection Service restrictions apply to proposed testi- legal counsel, request assistance from mony. Inspection Service employees the Department of Justice. are directed to comply with sum- (e) Compliance with subpoena duces monses, subpoenas, and court orders, tecum. (1) Except as required by part as to appearance, but may not testify 262 of this chapter, produce any other without authorization. record of the Postal Service only in (2) Postal Inspector reports or compliance with a subpoena duces records will not be presented during tecum or appropriate court order. testimony, in either state or federal (2) Do not release any record con- courts in which the United States, the taining information relating to an em- Postal Service, or another federal ployee’s security or loyalty. agency is not a party in interest, un- (3) Honor subpoenas and court orders less authorized by the Chief Postal In- only when disclosure is authorized. spector or the Postal Inspector in (4) When authorized to comply with a Charge of the affected field Division, subpoena duces tecum or court order, do who will make the decision after con- not leave the originals with the court. sulting with Inspection Service legal (5) Postal Inspector reports are con- counsel. If an attempt is made to com- sidered to be confidential internal doc- pel production, through testimony, the

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employee is directed to decline to (viii) An affirmative statement that produce the information or matter and the documents or testimony is nec- to state that it may be exempted and essary for defending or prosecuting the may not be disclosed or produced with- case at issue. out the specific approval of the Chief (3) The Counsel, Office of the Chief Postal Inspector or the Postal Inspec- Postal Inspector, shall act as agent for tor in Charge of the affected field Divi- the receipt of legal process for demands sion. The Postal Service will offer all for production of records or testimony possible assistance to the courts, but of Inspection Service employees where the question of disclosing information the United States, the Postal Service, for which an exemption may be or any other federal agency is not a claimed is a matter of discretion that party. A subpoena for testimony or for rests with the appropriate official. the production of documents from an Paragraph (e) of this section covers the Inspection Service employee con- release of Inspection Service docu- cerning official matters shall be served ments in cases where the Postal Serv- in accordance with the applicable rules ice or the United States is not a party. of civil procedure. A copy of the sub- (g) General procedures for obtaining In- poena and affidavit or declaration, if spection Service documents and testimony not previously furnished, shall also be from Inspection Service employees. (1) To sent to the Chief Postal Inspector or facilitate the orderly response to de- the appropriate Postal Inspector in mands for the testimony of Inspection Charge. Service employees and production of (4) Any Inspection Service employee documents in cases where the United who is served with a demand shall States, the Postal Service, or another promptly inform the Chief Postal In- federal agency is not a party, all de- spector, or the appropriate Postal In- mands for the production of nonpublic spector in Charge, of the nature of the documents or testimony of Inspection documents or testimony sought and all Service employees concerning matters relevant facts and circumstances. relating to their official duties and not (h) Authorization of testimony or pro- subject to the exemptions set forth in duction of documents. (1) The Chief paragraph (a) of this section shall be in Postal Inspector or the Postal Inspec- writing and conform to the require- tor in Charge of the affected field Divi- ments outlined in paragraphs (g)(2) and sion, after consulting with Inspection (g)(3) of this section. Service legal counsel, shall determine (2) Before or simultaneously with whether testimony or the production of service of a demand described in para- documents will be authorized. graph (g)(1) of this section, the request- (2) Before authorizing the requested ing party shall serve on the Counsel, testimony or the production of docu- Office of the Chief Postal Inspector, 475 ments, the Chief Postal Inspector or L’Enfant Plaza SW., Washington, DC the Postal Inspector in Charge of the 20260–2101, an affidavit or declaration affected field Division shall consider containing the following information: the following factors: (i) Statutory restrictions, as well as (i) The title of the case and the forum any legal objection, exemption, or where it will be heard; privilege that may apply; (ii) The party’s interest in the case; (ii) Relevant legal standards for dis- (iii) The reasons for the demand; closure of nonpublic information and (iv) A showing that the requested in- documents; formation is available, by law, to a (iii) Inspection Service rules and reg- party outside the Postal Service; ulations and the public interest; (v) If testimony is sought, a sum- (iv) Conservation of employee time; mary of the anticipated testimony; and (vi) If testimony is sought, a showing (v) Prevention of expenditures of gov- that Inspection Service records could ernment time and resources solely for not be provided and used in place of the private purposes. requested testimony; (3) If, in the opinion of the author- (vii) The intended use of the docu- izing official, the documents should not ments or testimony; and be released or testimony should not be

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furnished, that official’s decision is time and place, produce a copy of this final. section, and respectfully decline to tes- (4) Inspection Service legal counsel tify or produce any document on the may consult or negotiate with the basis of the regulations in this section. party or the party’s counsel seeking (9) The employee shall appear as or- testimony or documents to refine and dered by the subpoena, summons, or limit the demand, so that compliance other appropriate court order, unless: is less burdensome, or obtain informa- (i) Legal counsel has advised the em- tion necessary to make the determina- ployee that an appearance is inappro- tion whether the documents or testi- priate, as in cases where the subpoena, mony will be authorized. If the party summons, or other court order was not or party’s counsel seeking the docu- properly issued or served, has been ments or testimony fails to cooperate withdrawn, discovery has been stayed; in good faith, preventing Inspection or Service legal counsel from making an (ii) Where the Postal Service will informed recommendation to the au- present a legal objection to furnishing thorizing official, that failure may be the requested information or testi- presented to the court or other body mony. conducting the proceeding as a basis (i) Inspection Service employees as ex- for objection. pert or opinion witnesses. No Inspection (5) Permission to testify or to release Service employee may testify as an ex- documents in all cases will be limited pert or opinion witness, with regard to to matters outlined in the affidavit or declaration described in paragraph any matter arising out of the employ- (g)(2) of this section or to such parts as ee’s duties or functions at the Postal deemed appropriate by the authorizing Service, for any party other than the official. United States, except that in extraor- (6) If the authorizing official allows dinary circumstances, the Counsel, Of- the release of documents or testimony fice of the Chief Postal Inspector, may to be given by an employee, arrange- approve such testimony in private liti- ments shall be made for the taking of gation. An Inspection Service em- testimony or receipt of documents by ployee may not testify as such an ex- the least disruptive methods to the em- pert or opinion witness without the ex- ployee’s official duties. Testimony press authorization of the Counsel, Of- may, for example, be provided by affi- fice of the Chief Postal Inspector. A davits, answers to interrogatories, litigant must first obtain authoriza- written depositions, or depositions tion of the Counsel, Office of the Chief transcribed, recorded, or preserved by Postal Inspector, before designating an any other means allowable by law. Inspection Service employee as an ex- (i) While giving a deposition, the em- pert or opinion witness. ployee may, at the option of the au- (j) Postal liability. This section is in- thorizing official, be represented by In- tended to provide instructions to In- spection Service legal counsel. spection Service employees and does (ii) While completing affidavits, or not create any right or benefit, sub- other written reports or at any time stantive or procedural, enforceable by during the process of preparing for tes- any party against the Postal Service. timony or releasing documents, the (k) Fees. (1) Unless determined by 28 employee may seek the assistance of U.S.C. 1821 or other applicable statute, Inspection Service legal counsel. the costs of providing testimony, in- (7) Absent written authorization cluding transcripts, shall be borne by from the authorizing official, the em- the requesting party. ployee shall respectfully decline to (2) Unless limited by statute, such produce the requested documents, tes- costs shall also include reimbursement tify, or, otherwise, disclose the re- to the Postal Service for the usual and quested information. ordinary expenses attendant upon the (8) If the authorization is denied or employee’s absence from his or her of- not received by the return date, the ficial duties in connection with the employee, together with counsel, where case or matter, including the employ- appropriate, shall appear at the stated ee’s salary and applicable overhead

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charges, and any necessary travel ex- of the General Counsel in determining penses as follows: whether the public interest is served by (i) The Inspection Service is author- the inspection or copying of records ized to charge reasonable fees to par- that are: ties demanding documents or informa- (1) Related solely to the internal per- tion. Such fees, calculated to reim- sonnel rules and practices of the Postal burse the Postal Service for the cost of Service. responding to a demand, may include (2) Trade secrets, or privileged or the costs of time expended by Inspec- confidential commercial or financial tion Service employees, including at- information, obtained from any person. torneys, to process and respond to the (3) Information of a commercial na- demand; attorney time for reviewing ture, including trade secrets, whether the demand and for legal work in con- or not obtained from a person outside nection with the demand; expenses gen- the Postal Service, which under good erated by equipment used to search for, business practice would not be publicly produce, and copy the requested infor- disclosed. This class includes, but is mation; travel costs of the employee not limited to: and the agency attorney, including (i) Information pertaining to meth- lodging and per diem where appro- ods of handling valuable registered priate. Such fees shall be assessed at mail. the rates and in the manner specified (ii) Records of money orders, except in § 265.9. as provided in R900 of the Domestic Mail (ii) At the discretion of the Inspec- Manual (DMM). tion Service where appropriate, fees (iii) Technical information con- and costs may be estimated and col- cerning postage meters and prototypes lected before testimony is given. submitted for Postal Service approval (iii) The provisions in this section do prior to leasing to mailers. not affect rights and procedures gov- (iv) Reports of market surveys con- erning public access to official docu- ducted by or under contract in behalf ments pursuant to the Freedom of In- of the Postal Service. formation Act, 5 U.S.C 552. (v) Records indicating rural carrier (l) Acceptance of service. The rules in lines of travel. this section in no way modify the re- (vi) Records compiled within the quirements of the Federal Rules of Postal Service which would be of po- Civil Procedure (28 U.S.C. Appendix) tential benefit to persons or firms in regarding service of process. economic competition with the Postal Service. Subpart C—Availability of Records (vii) Information which, if publicly disclosed, could materially increase § 265.14 Rules concerning specific cat- procurement costs. egories of records. (viii) Information which, if publicly (a) Records available to the public on disclosed, could compromise testing or request. Except as otherwise proscribed examination materials. by law or regulations, including but (4) Interagency or internal memo- not limited to paragraphs (b) and (c) of randa or letters that would not be this section, § 265.2 and § 265.11–§ 265.13, available by law to a private party in Postal Service records will be made litigation with the Postal Service. available to any person in accordance (5) Reports and memoranda of con- with the procedures provided in § 265.3. sultants or independent contractors, (b) Records not subject to mandatory except to the extent they would be re- public disclosure. Certain classes of quired to be disclosed if prepared with- records are exempt from mandatory in the Postal Service. disclosure under exemptions contained (6) Files personal in nature, including in the Freedom of Information Act and medical and personnel files, the disclo- in 39 U.S.C. 410(c). The Postal Service sure of which would constitute a clear- will exercise its discretion, in accord- ly unwarranted invasion of personal ance with the policy stated in § 265.1(c), privacy. as implemented by instructions issued (7) Information prepared for use in by the Records Office with the approval connection with proceedings under

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chapter 36 of title 39, U.S. Code, relat- (vi) Could reasonably be expected to ing to rate, classification, and service endanger the life or physical safety of changes. any individual. (8) Information prepared for use in (2) Whenever a request is made which connection with the negotiation of col- involves access to records that could lective bargaining agreements under reasonably be expected to interfere chapter 12 of title 39, U.S. Code, or with law enforcement proceedings, and minutes of, or notes kept during, nego- (i) The investigation or proceeding tiating sessions conducted under such involves a possible violation of crimi- chapter. nal law; and (ii) There is reason to believe that, (9) Other matter specifically exempt- (A) The subject of the investigation ed from disclosure by statute. or proceeding is not aware of its pend- (c) Records or information compiled for ency, and law enforcement purposes. (1) Investiga- (B) Disclosure of the existence of the tory files compiled for law enforcement records could reasonably be expected to purposes, whether or not considered interfere with enforcement pro- closed, are exempt by statute from ceedings, the Postal Service may, dur- mandatory disclosure except to the ex- ing only such time as that cir- tent otherwise available by law to a cumstance continues, treat the records party other than the Postal Service, 39 as not subject to the requirements of U.S.C. 410(c)(6). As a matter of policy, the Freedom of Information Act. however, the Postal Service will nor- (3) Whenever informant records mally make records or information maintained by a criminal law enforce- compiled for law enforcement purposes ment agency (such as the Postal In- available upon request unless the pro- spection Service) under an informant’s duction of these records: name or personal identifier are re- (i) Could reasonably be expected to quested by a third party according to interfere with enforcement pro- the informant’s name or personal iden- ceedings; tifier, the records may be treated as (ii) Would deprive a person of a right not subject to the requirements of the to a fair trial or an impartial adjudica- Freedom of Information Act unless the tion; informant’s status as an informant has (iii) Could reasonably be expected to been officially confirmed. constitute an unwarranted invasion of (4) Authority to disclose records or personal privacy; information compiled for law enforcement purposes to persons outside the (iv) Could reasonably be expected to Postal Service must be obtained from disclose the identity of a confidential the Chief Postal Inspector, U.S. Postal source, including a State, local, or for- Service, Washington, DC 20260–2100, or eign agency or authority or any pri- designee. vate institution which furnished infor- (d) Disclosure of names and addresses of mation on a confidential basis, and, in customers. Upon request, the names and the case of a record or information addresses of specifically identified compiled by a criminal law enforce- Postal Service customers will be made ment authority (such as the Postal In- available only as follows: spection Service) in the course of a (1) Change of address. The new address criminal investigation, or by an agency of any specific customer who has filed conducting a lawful national security a permanent or temporary change of intelligence investigation, information address order (by submitting PS Form furnished by a confidential source; 3575, a hand-written order, or an elec- (v) Would disclose techniques and tronically communicated order) will be procedures for law enforcement inves- furnished to any person, except that tigations or prosecutions, or would dis- the new address of a specific customer close guidelines for law enforcement who has indicated on the order that the investigations or prosecutions if such address change is for an individual or disclosure could reasonably be ex- an entire family will be furnished only pected to risk circumvention of the in those circumstances stated at para- law; or graph (d)(5) of this section. Disclosure

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will be limited to the address of the (i) Except as provided in paragraph specifically identified individual about (d)(4)(iii) of this section, the boxholder whom the information is requested applicant name and address from PS (not other family members or individ- Form 1093 will be provided only in uals whose names may also appear on those circumstances stated in para- the change of address order). The Post- graphs (d)(5)(i) through (iii) of this sec- al Service reserves the right not to dis- tion. close the address of an individual for (ii) Except as provided in paragraph the protection of the individual’s per- (d)(4)(iii) of this section, the names of sonal safety. Other information on PS persons listed as receiving mail, other Form 3575 or copies of the form will not than the boxholder applicant, will be be furnished except in those cir- furnished from PS Form 1093 only in cumstances stated at paragraphs those circumstances stated in para- (d)(5)(i), (d)(5)(iii), or (d)(5)(iv) of this graphs (d)(5)(i) and (iii) of this section. section. (iii) When a copy of a protective (2) Name and address of permit holder. order has been filed with the post- The name and address of the holder of master, information from PS Form 1093 a particular bulk mail permit, permit will not be disclosed except pursuant to imprint or similar permit (but not in- the order of a court of competent juris- cluding postage meter licenses), and diction. the name of any person applying for a (5) Exceptions. Except as otherwise permit in behalf of a holder will be fur- provided in these regulations, names or addresses of Postal Service customers nished to any person upon the filing of will be furnished only as follows: a proper FOIA request and payment of (i) To a Federal, State or local gov- any applicable fees. For the name and ernment agency upon prior written cer- address of a postage meter license tification that the information is re- holder, see paragraph (d)(3) of this sec- quired for the performance of its du- tion. (Lists of permit holders may not ties. The Postal Service requires gov- be disclosed to members of the public. ernment agencies to use the format ap- See paragraph (e)(1) of this section.) pearing at the end of this section when (3) Name and address of postage evi- requesting the verification of a cus- dencing user. The name and address of tomer’s current address or a cus- an authorized user of a postage meter tomer’s new mailing address. If the re- or PC Postage product (postage evi- quest lacks any of the required infor- dencing systems) printing a specified mation or a proper signature, the post- indicium will be furnished to any per- master will return the request to the son upon the payment of any fees au- agency, specifying the deficiency in the thorized by § 265.9(b), provided the user space marked ‘OTHER’. A copy of PS is using the postage meter or PC Post- Form 1093 may be provided. age product for business purposes. The (ii)(A) To a person empowered by law request for this information must be to serve legal process, or the attorney sent to the manager of Postage Tech- for a party in whose behalf service will nology Management, Postal Service be made, or a party who is acting pro Headquarters. The request must in- se,1 upon receipt of written information clude the original or a photocopy of the that specifically includes all of the fol- envelope or wrapper on which the post- lowing: age meter or PC postage indicium in (1) A certification that the name or question is printed, and a copy or de- address is needed and will be used sole- scription of the contents to support ly for service of legal process in con- that the sender is a business or firm nection with actual or prospective liti- and not an individual. (Lists of author- gation; ized users of postage meters or PC (2) A citation to the statute or regu- Postage products may not be disclosed lation that empowers the requester to to members of the public.) serve process, if the requester is other (4) Post Office boxholder information. Information from PS Form 1093, Appli- 1 The term pro se means that a party is not cation for Post Office Box or Caller Serv- represented by an attorney but by himself or ice, will be provided as follows: herself.

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than the attorney for a party in whose (7) Address verification. The address of behalf service will be made, or a party a postal customer will be verified at who is acting pro se; the request of a Federal, State, or local (3) The names of all known parties to government agency upon written cer- the litigation; tification that the information is re- (4) The court in which the case has quired for the performance of the agen- been or will be commenced; cy’s duties. ‘‘Verification’’ means ad- (5) The docket or other identifying vising such an agency whether or not number, if one has been issued; and its address for a postal customer is one (6) The capacity in which the at which mail for that customer is cur- boxholder is to be served, e.g., defend- rently being delivered. ‘‘Verification’’ ant or witness. neither means nor implies knowledge (B) By submitting such information, on the part of the Postal Service as to the requester certifies that it is true. the actual residence of the customer or The address of an individual who files as to the actual receipt by the cus- with the postmaster a copy of a protec- tomer of mail delivered to that ad- tive court order will not be disclosed dress. The Postal Service requires gov- except as provided under paragraphs ernment agencies to use the format ap- (d)(5)(i), (iii), or (iv) of this section. A pearing at the end of this section when copy of Form 1093 will not be provided. requesting the verification of a cus- The Postal Service suggests use of the tomer’s current address or a cus- standard format appearing at the end tomer’s new mailing address. If the re- of this section when requesting infor- quest lacks any of the required information under this paragraph. When mation or a proper signature, the post- using the standard format on the sub- master will return the request to the mitter’s own letterhead, the standard agency, specifying the deficiency in the format must be used in its entirety. space marked ‘‘OTHER’’. The warning statement and certifi- (8) Business/Residence location. If the cation specifically must be included location of a residence or a place of immediately before the signature business is known to a Postal Service block. If the request lacks any of the employee, whether as a result of offi- required information or a proper signa- cial duties or otherwise, the employee ture, the postmaster will return it to may, but need not, disclose the loca- the requester specifying the deficiency. tion or give directions to it. No fee is (iii) In compliance with a subpoena charged for such information. or court order, except that change of (9) Private mailbox information. Infor- address or boxholder information mation from PS Form 1583, Application which is not otherwise subject to dis- for Delivery of Mail Through Agent, will closure under these regulations may be be provided as follows: disclosed only pursuant to a court (i) Except as provided in paragraph order. (d)(9)(iii) of this section, information (iv) To a law enforcement agency, for from PS Form 1583 will be provided oral requests made through the Inspec- only in the circumstance stated in tion Service, but only after the Inspec- paragraph (d)(5)(iii) of this section. tion Service has confirmed that the in- (ii) To the public only for the purpose formation is needed in the course of a of identifying a particular address as criminal investigation. (All other re- an address of an agent to whom mail is quests from law enforcement agencies delivered on behalf of other persons. No should be submitted in writing to the other information, including, but not postmaster as in paragraph (d)(5)(i) of limited to, the identities of persons on this section.) whose behalf agents receive mail, may (6) Jury service. The mailing address be disclosed to the public from PS of any customer sought in connection Form 1583. with jury service, if known, will be fur- (iii) Information concerning an indi- nished without charge upon prior writ- vidual who has filed a protective court ten request to a court official, such as order with the postmaster will not be a judge, court clerk or jury commis- disclosed except pursuant to the order sioner. of a court of competent jurisdiction.

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(e) Information not available for public U.S.C. 1905, are not subject to disclo- disclosure. (1) The Postal Service and sure pursuant to this part. its officers and employees shall not (4) Other records, the disclosure of make available to the public by any which is prohibited by statute, are not means or for any purpose any mailing subject to disclosure pursuant to this list or other list of names and address- part. es (past or present) of postal patrons or (f) Protection of the right of privacy. If other persons in response to a request any record required or permitted by under this part except that, upon a re- this part to be disclosed contains the quest in accordance with the proce- name of, or other identifying details dures of § 265.3, the Postal Service will, concerning, any person, including an to the extent required by law, provide employee of the Postal Service, the a listing of postal employees working disclosure of which would constitute a at a particular postal facility. clearly unwarranted invasion of per- (2) Records or other documents which sonal privacy, the name or other iden- are classified or otherwise specifically tifying details shall be deleted before authorized by Executive Order 12356 the record is disclosed and the re- and implementing regulations to be quester so informed. kept secret in the interest of the na- (g) Disclosure in part of otherwise ex- tional defense or foreign policy are not empt record. Any reasonably segregable subject to disclosure pursuant to this portion of a record shall be provided part. after deleting the information which is (3) Records consisting of trade se- neither subject to mandatory disclo- crets or confidential financial data, the sure nor available as a matter of dis- disclosure of which is prohibited by 18 cretion.

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[81 FR 86271, Nov. 30, 2016, as amended at 82 FR 12921, Mar. 8, 2017]

PART 266—PRIVACY OF 266.9 Exemptions. INFORMATION 266.10 Computer matching. AUTHORITY: 39 U.S.C. 401; 5 U.S.C. 552a. Sec. 266.1 Purpose and scope. § 266.1 Purpose and scope. 266.2 Policy. 266.3 Responsibility. This part is intended to protect indi- 266.4 Collection and disclosure of informa- vidual privacy and affects all personal tion about individuals. information collection and usage ac- 266.5 Notification. tivities of the entire U.S. Postal Serv- 266.6 Procedures for requesting inspection, ice. This includes the information copying, or amendment of records. interface of Postal Service employees 266.7 Appeal procedure. 266.8 Schedule of fees. to other employees, to individuals from

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the public at large, and to any private (d) Data Integrity Board—(1) Respon- organization or governmental agency. sibilities. The Data Integrity Board [40 FR 45723, Oct. 2, 1975] oversees Postal Service computer matching activities. Its principal func- § 266.2 Policy. tion is to review, approve, and maintain all written agreements for use of It is the policy of the U.S. Postal Service to ensure that any record with- Postal Service records in matching in its custody that identifies or de- programs to ensure compliance with scribes any characteristic or provides the Privacy Act and all relevant stat- historical information about an indi- utes, regulations, and guidelines. In ad- vidual or that affords a basis for infer- dition, the Board annually reviews ring personal characteristics, or things matching programs and other match- done by or to such individual, including activities in which the Postal Serv- ing the record of any affiliation with ice has participated during the pre- an organization or activity, or admis- ceding year to determine compliance sion to an institution, is accurate, with applicable laws, regulations, and complete, timely, relevant, and reason- agreements; compiles a biennial ably secure from unauthorized access. matching report of matching activi- Additionally, it is the policy to provide ties; and performs review and advise- the means for individuals to know: (a) ment functions relating to records ac- Of the existence of all Postal Service curacy, recordkeeping and disposal Privacy Act systems of records, (b) the practices, and other computer match- recipients and usage made of such in- ing activities. formation, (c) what information is op- (2) Composition. The Privacy Act re- tional or mandatory to provide to the quires that the senior official respon- Postal Service, (d) the procedures for sible for implementation of agency Pri- individuals to review and request up- vacy Act policy and the Inspector Gen- date to all information maintained eral serve on the Board. The Chief Pri- about themselves, (e) the reproduction vacy Officer, as administrator of Postal fees for releasing records, (f) the proce- Service Privacy Act policy, serves as dures for individual legal appeal in Secretary of the Board and performs cases of dissatisfaction; and (g) of the the administrative functions of the establishment or revision of a com- Board. The Board is composed of these puter matching program. and other members designated by the [45 FR 44272, July 1, 1980, as amended at 59 Postmaster General, as follows: FR 37160, July 21, 1994] (i) Vice President and Consumer Ad- vocate (Chairman). § 266.3 Responsibility. (ii) Chief Postal Inspector. (a) Records Office. The Records Office, (iii) Inspector General. within the Privacy Office, will ensure (iv) Senior Vice President, Human Postal Service-wide compliance with Resources. this policy. (v) Vice President, General Counsel. (b) Custodian. Custodians are respon- (vi) Chief Privacy Officer. sible for adherence to this part within their respective units and in particular [40 FR 45723, Oct. 2, 1975, as amended at 45 FR for affording individuals their rights to 44272, July 1, 1980; 59 FR 37160, July 21, 1994; inspect and obtain copies of records 60 FR 57345, Nov. 15, 1995; 64 FR 41291, July 30, concerning them. 1999; 68 FR 56560, Oct. 1, 2003] (c) Information System Executive. § 266.4 Collection and disclosure of in- These managers are responsible for re- formation about individuals. porting to the Records Office the existence or proposed development of Pri- (a) The following rules govern the vacy Act systems of records. They also collection of information about indi- must report any change that would viduals throughout Postal Service op- alter the systems description as pub- erations; lished in the FEDERAL REGISTER. They (1) The Postal Service will: establish the relevancy of the informa- (i) Collect, solicit and maintain only tion within those systems. such information about an individual

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as is relevant and necessary to accom- (2) Dissemination of personal infor- plish a purpose required by statute or mation may be made: Executive Order, (i) To a person pursuant to a require- (ii) Collect information, to the great- ment of the Freedom of Information est extent practicable, directly from Act (5 U.S.C. 552); the subject individual when such infor- (ii) To those officers and employees mation may result in adverse deter- of the Postal Service who have a need minations about an individual’s rights, for such information in the perform- benefits or privileges, ance of their duties; (iii) Inform any individual who has (iii) For a routine use as contained in been asked to furnish information the system notices published in the about himself whether that disclosure FEDERAL REGISTER; is mandatory or voluntary, by what au- (iv) To a recipient who has provided thority it is being solicited, the prin- advance adequate written assurance cipal purposes for which it is intended that the information will be used sole- to be used, the routine uses which may ly as a statistical reporting or research be made of it, and any penalties and record, and to whom the information is specific consequences for the indi- transferred in a form that is not individual, which are known to the Postal vidually identifiable; Service, which will result from refusal (v) To the Bureau of the Census for to furnish it. purposes of planning or carrying out a (2) The Postal Service will not dis- census or survey or related activity criminate against any individual who pursuant to the provisions of title 13, fails to provide information about him- U.S.C.; self unless that information is required (vi) To the National Archives of the or necessary for the conduct of the sys- United States as a record which has tem or program in which the individual sufficient historical or other value to desires to participate. warrant its continued preservation by (3) No information will be collected the U.S. Government, or for evaluation (or maintained) describing how individ- by the Administrator of General Serv- uals exercise rights guaranteed by the ices or his designee to determine First Amendment unless the Post- whether the record has such value; master General specifically determines (vii) To a person pursuant to a show- that such information is relevant and ing of compelling circumstances affect- necessary to carry out a statutory pur- ing the health or safety of an indi- pose of the Postal Service. vidual, if upon such disclosure notifica- (4) The Postal Service will not re- tion is transmitted to the last known quire individuals to furnish their So- address of such individual; cial Security account number or deny a (viii) To a federal agency or to an in- right, privilege or benefit because of an strumentality of any governmental ju- individual’s refusal to furnish the num- risdiction within or under the control ber unless it must be provided by Fed- of the United States for a civil or eral law. criminal law enforcement activity, if (b) Disclosures—(1) Disclosure: Limita- such activity is authorized by law and tions On. The Postal Service will not if the head of the agency or instrumen- disseminate information about an indi- tality has made a written request to vidual unless reasonable efforts have the Postal Service specifying the par- been made to assure that the informa- ticular portion of the record desired tion is accurate, complete, timely and and the law enforcement activity for relevant and unless: which the record is sought; (i) The individual to whom the record (ix) To either House of Congress or pertains has requested in writing that its committees or subcommittees to the information be disseminated, or the extent of matter within their juris- (ii) It has obtained the prior written diction; consent of the individual to whom the (x) To the Comptroller General or record pertains, or any of his authorized representatives (iii) The dissemination is in accord- in the course of the performance of the ance with paragraph (b)(2) of this sec- duties of the General Accounting Of- tion. fice;

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(xi) Pursuant to the order of a court and Budget must be made pursuant to of competent jurisdiction. paragraph (f) of § 266.5. (3) Names and Addresses of Postal Cus- (iii) Computer matching agreement. The tomers. The disclosure of lists of names participants in a computer matching or addresses of Postal customers or program must enter into a written other persons to the public is prohib- agreement specifying the terms under ited (39 U.S.C. 412). Names or addresses which the matching program is to be of Postal Service customers will be dis- conducted (see § 266.10). The Manager, closed only in those cases permitted by Records Office, may require that other 39 CFR 265.14(d) relating to the Release matching activities be conducted in ac- of Information. cordance with a written agreement. (4) Employee Credit References. A cred- (iv) Data Integrity Board approval. No it bureau or commercial firm from record from a Postal Service system of which an employee is seeking credit records may be disclosed for use in a may be given the following informa- computer matching program unless the tion upon request: grade, duty status, matching agreement has received ap- length of service, job title, and salary. proval by the Postal Service Data In- (5) Employee Job References. Prospec- tegrity Board (see § 266.10). Other tive employers of a postal employee or matching activities may, at the discre- a former postal employee may be fur- tion of the Manager, Records Office, be nished with the information in para- submitted for Board approval. graph (b)(4) of this section, in addition (c) Correction Disclosure. Any person to the date and the reason for separa- or other agency to which a personal tion, if applicable. The reason for sepa- record has been or is to be disclosed ration must be limited to one of the shall be informed of any corrections or following terms: retired, resigned, or notations of dispute relating thereto separated. Other terms or variations of affecting the accuracy, timeliness or these terms (e.g., retired—disability) relevance of that personal record. may not be used. If additional informa- (d) Recording of Disclosure. (1) An action is desired, the requester must sub- curate accounting of each disclosure mit the written consent of the em- will be kept in all instances except ployee, and an accounting of the disclo- those in which disclosure is made to sure must be kept. the subject of the record, or to Postal (6) Computer matching purposes. Service employees in the performance Records from a Postal Service system of their duties or is required by the of records may be disclosed to another Freedom of Information Act (5 U.S.C. agency for the purpose of conducting a 552). computer matching program or other (2) The accounting will be main- matching activity as defined in para- tained for at least five (5) years or the graphs (c) and (d) of § 262.5, but only life of the record, whichever is longer. after a determination by the Data In- (3) The accounting will be made tegrity Board that the procedural re- available to the individual named in quirements of the Privacy Act, the the record upon inquiry, except for dis- guidelines issued by the Office of Man- closures made pursuant to provision agement and Budget, and these regula- paragraph (b)(2)(viii) of this section re- tions as may be applicable are met. lating to law enforcement activities. These requirements include: [40 FR 45723, Oct. 2, 1975, as amended at 45 FR (i) Routine use. Disclosure is made 44272, July 1, 1980; 58 FR 62036, Nov. 24, 1993; only when permitted as a routine use 59 FR 37160, July 21, 1994; 64 FR 41291, July 30, of the system of records. The Manager, 1999; 68 FR 56560, Oct. 1, 2003; 82 FR 12921, Records Office, determines the applica- Mar. 8, 2017] bility of a particular routine use and the necessity for adoption of a new rou- § 266.5 Notification. tine use. (a) Notification of Systems. Upon writ- (ii) Notice. Publication of new or re- ten request, the Postal Service will no- vised matching programs in the FED- tify any individual whether a specific ERAL REGISTER and advance notice to system named by the individual con- Congress and the Office of Management tains a record pertaining to him or her.

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See § 266.6 for suggested form of re- § 266.6 Procedures for requesting in- quest. spection, copying, or amendment of (b) Notification of Disclosure. The records. Postal Service shall make reasonable The purpose of this section is to pro- efforts to serve notice on an individual vide procedures by which an individual before any personal information on may have access and request amend- such individual is made available to ment to personal information within a any person under compulsory legal Privacy Act System of Records. process when such process becomes a (a) Submission of Requests—(1) Manner matter of public record. of submission. Inquiries regarding the contents of records systems or access (c) Notification of Amendment. (See or amendment to personal information § 266.6(c)(1) relating to amendment of should be submitted in writing to the records upon request.) custodian of the official record, if (d) Notification of New Use. Any newly known, or to the Manager, Records Of- intended use of personal information fice, U.S. Postal Service, 475 L’Enfant maintained by the Postal Service will Plaza SW., Washington, DC 20260, tele- be published in the FEDERAL REGISTER phone (202) 268–2608. Requests sub- thirty (30) days before such use be- mitted to the Office of Inspector Gen- comes operational. Public views may eral should be submitted to the Free- then be submitted to the Records Of- dom of Information Act/Privacy Offi- fice. cer, Office of Inspector General, 1735 (e) Notification of Exemptions. The North Lynn Street, Arlington, Vir- Postal Service will publish within the ginia, 22209–2020. Inquiries should be FEDERAL REGISTER its intent to exempt clearly marked, ‘‘Privacy Act Re- any system of records and shall specify quest’’. Any inquiry concerning a spe- the nature and purpose of that system. cific system of records should provide (f) Notification of computer matching the Postal Service with the informa- program. The Postal Service publishes tion contained under ‘‘Notification’’ for that system as published in the in the FEDERAL REGISTER and forwards FEDERAL EGISTER to Congress and the Office of Manage- R . If the information supplied is insufficient to locate or ment and Budget advance notice of its identify the record, the requester will intent to establish, substantially re- be notified promptly and, if possible, vise, or renew a matching program, un- informed of additional information re- less such notice is published by another quired. If the requester is not a Postal participant agency. In those instances Service employee, he should designate in which the Postal Service is the ‘‘re- the post office at which he wishes to cipient’’ agency, as defined in the Act, review or obtain copies of records. but another participant agency spon- Amendment requests contest the rel- sors and derives the principal benefit evance, accuracy, timeliness or com- from the matching program, the other pleteness of the record and will include agency is expected to publish the no- a statement of the amendment re- tice. The notice must be sent to Con- quested. gress and OMB 40 days, and published (2) Third party inquiries. Anyone de- at least thirty (30) days, prior to (1) ini- siring to review or copy records per- tiation of any matching activity under taining to another person must have a new or substantially revised pro- the written consent of that person. gram, or (2) expiration of the existing (3) Period for response by custodian. matching agreement in the case of a Upon receipt of an inquiry, the custo- renewal of a continuing program. dian will respond with an acknowledgement of receipt within ten (10) days. If [40 FR 45724, Oct. 2, 1975; 40 FR 48512, Oct. 16, the inquiry requires the custodian to 1975, as amended at 45 FR 44272, July 1, 1980; determine whether a particular record 59 FR 37161, July 21, 1994; 60 FR 57345, Nov. 15, exists, the inquirer shall be informed of 1995; 64 FR 41291, July 30, 1999; 68 FR 56560, this determination as a part of the ac- Oct. 1, 2003; 69 FR 34935, June 23, 2004] knowledgement letter. (b) Compliance with Request for Ac- cess—(1) Notification of time and place for

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inspection. When a requested record has tion or proceeding. Other limitations been identified and is to be disclosed, on access are those specifically ad- the custodian shall ensure that the dressed in §§ 266.6(b)(4) and 266.9. record is made available promptly and (6) Response when compliance is not shall immediately notify the requester possible. A reply denying a written re- where and when the record will be quest to review a record shall be in available for inspection or copying. writing signed by the custodian or Postal Service records will normally be other appropriate official and shall be available for inspection and copying made only if such a record does not during regular business hours at the exist or does not contain personal in- postal facilities at which they are formation relating to the requester, or maintained. The custodian may, how- is exempt from disclosure. This reply ever, designate other reasonable loca- shall include a statement regarding the tions and times for inspection and determining factors of denial, and the copying of some or all of the records right to appeal to denial to the General within his custody. Counsel. (2) Identification of requester. The re- (c) Compliance With Request for quester must present personal identi- Amendment. (1) Correct or eliminate fication sufficient to satisfy the custo- any information that is found to be in- dian as to his identity prior to record complete, inaccurate, not relevant to a review. Examples of sufficient identi- statutory purpose of the Postal Serv- fication are a valid driver’s license, ice, or not timely and notify the re- Medicare card, and employee identi- quester when this action is complete, fication cards. or (3) The re- Responsibilities of requester. (2) Not later than thirty (30) working quester shall assume the following re- days after receipt of a request to sponsibilities regarding the review of amend, notify the requester of a deter- official personal records: mination not to amend and of the re- (i) Requester must agree not to leave quester’s right to appeal, or to submit, Postal Services premises with official in lieu of an appeal, a statement of rea- records unless specifically given a copy sonable length setting forth a position for that purpose by the custodian or his regarding the disputed information to representative. be attached to the contested personal (ii) Requester must sign a statement record. indicating he has reviewed a specific (d) Availability of Assistance in Exer- record(s) or category of record. cising Rights. The Manager, Records Of- (iii) Requester may be accompanied fice is available to provide an indi- by a person he so chooses to aid in the vidual with assistance in exercising inspection of information; however, re- rights pursuant to this part. quester must furnish the Postal Serv- ice with written authorization for such [40 FR 45723, Oct. 2, 1975, as amended at 45 FR review in that person’s presence. 44272, July 1, 1980; 51 FR 26386, July 23, 1986; (4) Special rules for medical records. A 60 FR 57345, Nov. 15, 1995; 64 FR 41291, July 30, medical record shall be disclosed to the 1999; 67 FR 16024, Apr. 4, 2002; 68 FR 56560, requester to whom it pertains unless, Oct. 1, 2003] in the judgment of the medical officer, § 266.7 Appeal procedure. access to such record could have an adverse effect upon such individual. When (a) Appeal Procedure. (1) If a request the medical officer determines that the to inspect, copy, or amend a record is disclosure of medical information denied, in whole or in part, or if no de- could have an adverse effect upon the termination is made within the period individual to whom it pertains, the prescribed by this part, the requester medical officer will transmit such in- shall appeal to the General Counsel, formation to a medical doctor named U.S. Postal Service, Washington, DC by the requesting individual. 20260–1100. (5) Limitations on access. Nothing in (2) The requester should submit his this section shall allow an individual appeal in writing within thirty (30) access to any information compiled in days of the date of denial, or within reasonable anticipation of a civil ac- ninety (90) days of such request if the

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appeal is from a failure of the custo- without charge. See paragraph (d) of dian to make a determination. The let- this section for fee limitations. ter of appeal should include, as applica- (2) The Postal Service may at its dis- ble: cretion make coin-operated copy ma- (i) Reasonable identification of the chines available at any location. In record access to which or the amend- that event, requesters will be given the ment of which was requested. opportunity to make copies at their (ii) A statement of the Postal Service own expense. action or failure to act and of the relief (3) The Postal Service normally will sought. not furnish more than one copy of any (iii) A copy of the request, of the no- record. If duplicate copies are fur- tification of denial and of any other re- nished at the request of the requester, lated correspondence. $.15 per page fee is charged for each (3) Any record found on appeal to be copy of each duplicate page without re- incomplete, inaccurate, not relevant, gard to whether the requester is eligi- or not timely, shall within thirty (30) ble for free copies pursuant to working days of the date of such find- § 266.8(b)(1). ings be appropriately amended. (c) Aggregating requests. When the (4) The decision of the General Coun- custodian reasonably believes that a sel, constitutes the final decision of the requester is attempting to break a re- Postal Service on the right of the request for similar types of records down quester to inspect, copy, change, or up- into a series of requests in order to date a record. The decision on the ap- evade the assessment of fees, the custo- peal shall be in writing and in the dian may aggregate the requests and event of a denial shall set forth the charge accordingly. reasons for such denial and state the (d) Limitations. No fee will be charged individual’s right to obtain judicial re- an individual for the process of retriev- view in a district court. An indexed file ing, reviewing, or amending a record of decisions on appeals shall be main- pertaining to that individual. tained by the General Counsel. (e) The Postal Service may, at its (b) Submission of Statement of Disagree- discretion, require reimbursement of ment. If the final decision concerning a its costs as a condition of participation request for the amendment of a record in a computer matching program or ac- does not satisfy the requester, any tivity with another agency. The agency statement of reasonable length pro- to be charged is notified in writing of vided by that individual setting forth a the approximate costs before they are position regarding the disputed infor- incurred. Costs are calculated in ac- mation will be accepted and attached cordance with the schedule of fees at to the relevant personal record. § 265.9. [40 FR 45723, Oct. 2, 1975, as amended at 41 FR [52 FR 38230, Oct. 15, 1987, as amended at 59 24709, June 18, 1976; 45 FR 44273, July 1, 1980; FR 37161, July 21, 1994; 68 FR 56560, Oct. 1, 51 FR 26386, July 23, 1986; 60 FR 57345, Nov. 15, 2003] 1995; 64 FR 41291, July 30, 1999; 68 FR 56560, Oct. 1, 2003] § 266.9 Exemptions. (a) Subsections 552a(j) and (k) of 5 § 266.8 Schedule of fees. U.S.C. 552a empower the Postmaster (a) Policy. The purpose of this section General to exempt systems of records is to establish fair and equitable fees to meeting certain criteria from various permit duplication of records for sub- other subsections of 5 U.S.C. 552a. With ject individuals (or authorized rep- respect to systems of records so ex- resentatives) while recovering the full empted, nothing in this part shall re- allowable direct costs incurred by the quire compliance with provisions here- Postal Service. of implementing any subsections of 5 (b) Duplication. (1) For duplicating U.S.C. 552a from which those systems any paper or micrographic record or have been exempted. publication or computer report, the fee (b) Paragraph (b)(1) of this section is $.15 per page, except that the first contains a summary of provisions of 5 100 pages furnished in response to a U.S.C. 552a for which exemption is particular request shall be furnished claimed for some systems of records

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pursuant to, and to the extent per- upon request whether the system of mitted by, subsections 552a(j) and (k) of records contains information about the 5 U.S.C. 552a. Paragraphs (b)(2) through individual, how to gain access to any (5) of this section identify the exempt- record about the individual contained ed systems of records, the exemptions in the system, and how to contest its applied to each, and the reasons for the content. exemptions: (viii) Subsection (e)(5) requires an (1) Explanation of provisions under 5 agency to maintain its records with U.S.C. 552a for which an exemption is such accuracy, relevance, timeliness, claimed in the systems discussed below. (i) and completeness as is reasonably nec- Subsection (c)(3) requires an agency to essary to ensure fairness to the indi- make available to the individual vidual in making any determination named in the records an accounting of about the individual. each disclosure of records. (ix) Subsection (e)(8) requires an (ii) Subsection (c)(4) requires an agency to make reasonable efforts to agency to inform any person or other serve notice on an individual when any agency to which a record has been dis- record on such individual is made closed of any correction or notation of available to any person under compul- dispute the agency has made to the sory legal process when such process record in accordance with 5 U.S.C. becomes a matter of public record. 552a(d). (x) Subsection (f) requires an agency (iii) Subsections (d)(1) through (4) re- to establish procedures whereby an inquire an agency to permit an indi- dividual can be notified upon request if vidual to gain access to records about any system of records named by the in- the individual, to request amendment dividual contains a record pertaining of such records, to request a review of to the individual, obtain access to the an agency decision not to amend such record, and request amendment. records, and to provide a statement of (xi) Subsection (g) provides for civil disagreement about a disputed record remedies if an agency fails to comply to be filed and disclosed with the dis- with the access and amendment provi- puted record. sions of subsections (d)(1) and (d)(3), (iv) Subsection (e)(1) requires an and with other provisions of 5 U.S.C. agency to maintain in its records only 552a, or any rule promulgated there- such information about an individual under, in such a way as to have an ad- that is relevant and necessary to ac- verse effect on an individual. complish a purpose required by statute (xii) Subsection (m) requires an agen- or executive order of the President. cy to cause the requirements of 5 (v) Subsection (e)(2) requires an agen- U.S.C. 552a to be applied to a con- cy to collect information to the great- tractor operating a system of records est extent practicable directly from to accomplish an agency function. the subject individual when the infor- (2) Pursuant to subsection 552a(j)(2), mation may result in adverse deter- Emergency Management Records, USPS minations about an individual’s rights, 500.300; Inspection Service Investigative benefits, and privileges under federal File System, USPS 700.000; Mail Cover programs. Program Records, USPS 700.100; and In- (vi) Subsection (e)(3) requires an spector General Investigative Records, agency to inform each person whom it USPS 700.300, are exempt from sub- asks to supply information of the au- sections 552a (c)(3), (c)(4), (d)(1)–(4), thority under which the information is (e)(1)–(3), (e)(4) (G) and (H), (e)(5), (e)(8), sought, the purposes for which the in- (f), (g), and (m) because the systems formation will be used, the routine contain information pertaining to the uses that may be made of the informa- enforcement of criminal laws. The rea- tion, whether disclosure is mandatory sons for exemption follow: or voluntary, and the effects of not (i) Disclosure to the record subject providing the information. pursuant to subsections (c)(3), (c)(4), or (vii) Subsection (e)(4)(G) and (H) re- (d)(1)–(4) could: quires an agency to publish a FEDERAL (A) Alert subjects that they are tar- REGISTER notice of its procedures gets of an investigation or mail cover whereby an individual can be notified by the Postal Inspection Service or an

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investigation by the Office of Inspector an investigation or mail cover by the General; Postal Inspection Service, enabling (B) Alert subjects of the nature and avoidance of detection or apprehen- scope of the investigation and of evi- sion, thereby seriously compromising dence obtained; law enforcement, mail cover, or back- (C) Enable the subject of an inves- ground investigations involving law en- tigation to avoid detection or appre- forcement aspects. Moreover, in cer- hension; tain circumstances the subject of an (D) Subject confidential sources, wit- investigation is not required to provide nesses, and law enforcement personnel information to investigators, and infor- to harassment or intimidation if their mation must be collected from other identities were released to the target of sources. an investigation; (iv) The requirements of subsections (E) Constitute unwarranted invasions (e)(4)(G) and (H), and (f) do not apply of the personal privacy of third parties because this system is exempt from the who are involved in a certain investiga- provisions of subsection (d). Neverthe- tion; less, the Postal Service has published (F) Intimidate potential witnesses notice of its notification, access, and and cause them to be reluctant to offer contest procedures because access is information; appropriate in some cases. (G) Lead to the improper influencing (v) Application of subsection (e)(8) of witnesses, the destruction or alter- could prematurely reveal an ongoing ation of evidence yet to be discovered, criminal investigation to the subject of the fabrication of testimony, or the the investigation. compromising of classified material; (vi) The provisions of subsection (g) and do not apply because exemption from (H) Seriously impede or compromise the provisions of subsection (d) renders law enforcement, mail cover, or back- the provisions on suits to enforce sub- ground investigations that might in- section (d) inapplicable. volve law enforcement aspects as a result of the above. (vii) If one of these systems of (ii) Application of subsections (e)(1) records is operated in whole or in part and (e)(5) is impractical because the by a contractor, the exemptions relevance, necessity, or correctness of claimed herein shall remain applicable specific information might be estab- to it (subsection (m)). lished only after considerable analysis (3) Pursuant to subsection 552a(k)(2), and as the investigation progresses. As Labor Relations Records, USPS 200.000; to relevance (subsection (e)(1)), effec- Emergency Management Records, USPS tive law enforcement requires the 500.300; Inspection Service Investigative keeping of information not relevant to File System, USPS 700.000; Mail Cover a specific Postal Inspection Service in- Program Records, USPS 700.100; Inspector vestigation or Office of Inspector Gen- General Investigative Records, USPS eral investigation. Such information 700.300; and Financial Transactions, may be kept to provide leads for appro- USPS 860.000, are exempt from certain priate law enforcement and to estab- subsections of 5 U.S.C. 552a because the lish patterns of activity that might re- systems contain investigatory material late to the jurisdiction of the Office of compiled for law enforcement purposes Inspector General, Postal Inspection other than material within the scope of Service, and/or other agencies. As to subsection 552a(j)(2). accuracy (subsection (e)(5)), the cor- (i) Emergency Management Records, rectness of records sometimes can be USPS 500.300; Inspection Service Inves- established only in a court of law. tigative File System, USPS 700.000; Mail (iii) Application of subsections (e)(2) Cover Program Records, USPS 700.100; and (e)(3) would require collection of and Inspector General Investigative information directly from the subject Records, USPS 700.300, are exempt from of a potential or ongoing investigation. subsections 552a(c)(3), (d)(1)–(4), (e)(1), The subject would be put on alert that (e)(4) (G) and (H), and (f) for the same he or she is a target of an investigation reasons as stated in paragraph (b)(2) of by the Office of Inspector General, or this section.

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(ii) Labor Relations Records, USPS (4) Pursuant to subsection 552a(k)(5), 200.000, is exempt from subsections Recruiting, Examining, and Placement 552a(d)(1)–(4), (e)(4)(G) and (H), and (f) Records, USPS 100.100; Labor Relations for the following reasons: Records, USPS 200.000; Inspection Service (A) Application of the requirements Investigative File System, USPS 700.000; at subsections (d)(1)-(4) would cause and Inspector General Investigative disruption of enforcement of the laws Records, USPS 700.300 are exempt from relating to equal employment oppor- certain subsections of 5 U.S.C. 552a be- tunity (EEO). It is essential to the in- cause the systems contain investiga- tegrity of the EEO complaint system tory material compiled for the purpose that information collected in the in- of determining suitability, eligibility, vestigative process not be prematurely or qualifications for employment, con- disclosed and that witnesses be free tracts, or access to classified informa- from restraint, interference, coercion, tion. or reprisal. (i) Recruiting, Examining, and Place- (B) The requirements of subsections ment Records, USPS 100.100, is exempt (e)(4)(G) and (H), and (f) do not apply from subsections 552a(d)(1)–(4) and for the same reasons described in para- (e)(1) for the following reasons: graph (b)(2)(iv) of this section. (A) During its investigation and evaluation of an applicant for a position, (iii) Financial Transactions, USPS the Postal Service contacts individuals 860.000, is exempt from subsections who, without an assurance of anonym- 552a(c)(3), (d)(1)–(4), (e)(1), (e)(4)(G) and ity, would refuse to provide informa- (H), and (f) for the following reasons: tion concerning the subject of the in- (A) Disclosure to the record subject vestigation. If a record subject were pursuant to subsections (c)(3) and given access pursuant to subsection (d)(1)–(4) would violate the non-notifi- (d)(1)–(4), the promised confidentiality cation provision of the Bank Secrecy would be breached and the confidential Act, 31 U.S.C. 5318(g)(2), under which source would be identified. The result the Postal Service is prohibited from would be restriction of the free flow of notifying a transaction participant information vital to a determination of that a suspicious transaction report an individual’s qualifications and suit- has been made. In addition, the access ability for appointment to or continued provisions of subsections (c)(3) and occupancy of his or her position. (d)(1)–(4) would alert individuals that (B) In collecting information for in- they have been identified as suspects or vestigative and evaluative purposes, it possible subjects of investigation and is impossible to determine in advance thus seriously hinder the law enforce- what information might be of assist- ment purposes underlying the sus- ance in determining the qualifications picious transaction reports. and suitability of an individual for ap- (B) This system is in compliance with pointment. Information that seems ir- subsection (e)(1) because maintenance relevant, when linked with other infor- of the records is required by law. Strict mation, can sometimes provide a com- application of the relevance and neces- posite picture of an individual that as- sity requirements of subsection (e)(1) sists in determining whether that indi- to suspicious transactions would be im- vidual should be appointed to or re- practical, however, because the rel- tained in a position. For this reason, evance or necessity of specific informa- exemption from subsection (e)(1) is tion can often be established only after claimed. considerable analysis and as an inves- (C) The requirements of subsections tigation progresses. (e)(4)(G) and (H), and (f) do not apply (C) The requirements of subsections because this system is exempt from the (e)(4)(G) and (H), and (f) do not apply provisions of subsection (d). Neverthe- because this system is exempt from the less, the Postal Service has published provisions of subsection (d). Neverthe- notice of its notification, access, and less, the Postal Service has published contest procedures because access is notice of its notification, access, and appropriate in some cases. contest procedures because access is (ii) Labor Relations Records, USPS appropriate in some cases. 200.000, is exempt from subsections

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552a(d)(1)–(4), (e)(4)(G) and (H), and (f) contest procedures because access is for the following reasons: appropriate in some cases. (A) Application of the provisions at [70 FR 22513, Apr. 29, 2005] subsection (d)(1)–(4) would reveal to the EEO complainant the identity of indi- § 266.10 Computer matching. viduals who supplied information under (a) General. Any agency or Postal a promise of anonymity. It is essential Service component that wishes to use to the integrity of the EEO complaint records from a Postal Service auto- system that information collected in mated system of records in a computer- the investigative process not be pre- ized comparison with other postal or maturely disclosed and that witnesses non-postal records must submit its pro- be free from restraint, interference, co- posal to the Postal Service Manager ercion, or reprisal. Records Office. Computer matching (B) The requirements of subsections programs as defined in paragraph (c) of (e)(4)(G) and (H), and (f) do not apply § 262.5 must be conducted in accordance because this system is exempt from the with the Privacy Act, implementing provisions of subsection (d). Neverthe- guidance issued by the Office of Man- less, the Postal Service has published agement and Budget and these regula- notice of its notification, access, and tions. Records may not be exchanged contest procedures because access is for a matching program until all proce- appropriate in some cases. dural requirements of the Act and (iii) Inspection Service Investigative these regulations have been met. Other File System, USPS 700.000; and Inspector matching activities must be conducted General Investigative Records, USPS in accordance with the Privacy Act and 700.300, are exempt from subsections with the approval of the Manager, 552a(c)(3), (d)(1)–(4), (e)(1), (e)(4) (G) and Records Office. See paragraph (b)(6) of (H), and (f) for the same reasons as § 266.4. stated in paragraph (b)(2) of this sec- (b) Procedure for submission of match- tion. ing proposals. A proposal must include (5) Pursuant to subsection 552a(k)(6), information required for the matching agreement discussed in paragraph (d)(1) Employee Development and Training of this section. The Inspection Service Records, USPS 100.300; Personnel Re- must submit its proposals for matching search Records, 100.600; and Emergency programs and other matching activi- Management Records, USPS 500.300 are ties to the Postal Service Manager exempt from subsections 552a(d)(1)–(4), Records Office through: Independent (e)(4)(G) and (H), and (f) because the Counsel, Inspection Service, U.S. Post- systems contain testing or examina- al Service, 475 L’Enfant Plaza SW, Rm tion material the disclosure of which 3417, Washington, DC 20260–2181. All would compromise the objectivity or other matching proposals, whether fairness of the material. The reasons from postal organizations or other gov- for exemption follow: ernment agencies, must be mailed di- (i) These systems contain questions rectly to: Manager, Records Office, and answers to standard testing mate- U.S. Postal Service, 475 L’Enfant Plaza rials, the disclosure of which would SW., Washington, DC 20260. compromise the fairness of the future (c) Lead time. Proposals must be sub- use of these materials. It is not feasible mitted to the Postal Service Manager to develop entirely new examinations Records Office at least 3 months in ad- after each administration as would be vance of the anticipated starting date necessary if questions or answers were to allow time to meet Privacy Act pub- available for inspection and copying. lication and review requirements. Consequently, exemption from sub- (d) Matching agreements. The partici- section (d) is claimed. pants in a computer matching program (ii) The requirements of subsections must enter into a written agreement (e)(4)(G) and (H), and (f) do not apply specifying the terms under which the because this system is exempt from the matching program is to be conducted. provisions of subsection (d). Neverthe- The Manager, Records Office may re- less, the Postal Service has published quire similar written agreements for notice of its notification, access, and other matching activities.

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(1) Content. Agreements must specify: terms of the matching agreement. To (i) The purpose and legal authority be effective, the matching agreement for conducting the matching program; must receive approval by each member (ii) The justification for the program of the Board. Votes are collected by the and the anticipated results, including, Postal Service Manager Records Office. when appropriate, a specific estimate Agreements are signed on behalf of the of any savings in terms of expected Board by the Chairman. If a matching costs and benefits, in sufficient detail agreement is disapproved by the Board, for the Data Integrity Board to make any party may appeal the disapproval an informed decision; in writing to the Director, Office of (iii) A description of the records that Management and Budget, Washington, are to be matched, including the data DC 20503–0001, within 30 days following elements to be used, the number of the Board’s written disapproval. records, and the approximate dates of (3) Effective dates. No matching agree- the matching program; ment is effective until 40 days after the (iv) Procedures for providing notice date on which a copy is sent to Con- to individuals who supply information gress. The agreement remains in effect that the information may be subject to only as long as necessary to accom- verification through computer match- plish the specific matching purpose, ing programs; but no longer than 18 months, at which (v) Procedures for verifying informa- time the agreement expires unless ex- tion produced in a matching program tended. The Data Integrity Board may and for providing individuals an oppor- extend an agreement for one additional tunity to contest the findings in accordance with the requirement that an year, without further review, if within agency may not take adverse action 3 months prior to expiration of the 18- against an individual as a result of in- month period it finds that the match- formation produced by a matching pro- ing program is to be conducted without gram until the agency has independ- change, and each party to the agree- ently verified the information and pro- ment certifies that the program has vided the individual with due process; been conducted in compliance with the (vi) Procedures for ensuring the ad- matching agreement. Renewal of a con- ministrative, technical, and physical tinuing matching program that has run security of the records matched; for for the full 30-month period requires a the retention and timely destruction of new agreement that has received Data records created by the matching pro- Integrity Board approval. gram; and for the use and return or de- [59 FR 37161, July 21, 1994, as amended at 60 struction of records used in the pro- FR 57345, Nov. 15, 1995; 64 FR 41291, July 30, gram; 1999; 68 FR 56560, Oct. 1, 2003; 69 FR 34935, (vii) Prohibitions concerning duplica- June 23, 2004] tion and redisclosure of records exchanged, except where required by law PART 267—PROTECTION OF or essential to the conduct of the INFORMATION matching program; (viii) Assessments of the accuracy of Sec. the records to be used in the matching 267.1 Purpose and scope. program; and 267.2 Policy. (ix) A statement that the Comp- 267.3 Responsibility. troller General may have access to all 267.4 Information security standards. records of the participant agencies in 267.5 National Security Information. order to monitor compliance with the agreement. AUTHORITY: 39 U.S.C. 401; Pub. L. 93–579, 88 (2) Approval. Before the Postal Serv- Stat. 1896. ice may participate in a computer matching program or other computer § 267.1 Purpose and scope. matching activity that involves both This part addresses the protection of USPS and non-USPS records, the Data information and records in the custody Integrity Board must have evaluated of the Postal Service throughout all the proposed match and approved the phases of information flow and within

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all organization components, and in- (3) Information handling and proc- cludes micromated, manual and data essing, processing information. (4) Information dissemination and [40 FR 45726, Oct. 2, 1975] disclosure, (5) Information storage and destruc- § 267.2 Policy. tion, Consistent with the responsibility of (b) Supplementing this list are infor- the Postal Service to make its official mation security standards pertaining records available to the public to the to the following administrative areas: maximum extent required by the pub- (1) Personnel selection and training, lic interest, and to ensure the security, (2) Physical environment protection, confidentiality, and integrity of offi- (3) Contingency planning, cial records containing sensitive or na- (4) Information processing or storage tional security information, it is the system procurement, policy of the Postal Service to main- (5) Contractual relationships. tain definitive and uniform informa- [40 FR 45726, Oct. 2, 1975; 40 FR 48512, Oct. 16, tion security safeguards. These safe- 1975] guards will have as their purpose: (a) Ensuring the effective operation of the § 267.5 National Security Information. Postal Service through appropriate (a) Purpose and scope. The purpose of controls over critical information, and this section is to provide regulations (b) Protecting personal privacy, the implementing Executive Order 12356 public interest, and the national security by limiting unauthorized access to National Security Information (herein- both restricted and national security after referred to as the Executive information. Order) which deals with the protection, handling and classification of national [44 FR 51224, Aug. 31, 1979] security information. (b) Definitions. (1) In this section, Na- § 267.3 Responsibility. tional Security Information means infor- (a) Chief Postal Inspector and Chief mation on the national defense and for- Privacy Officer. The Chief Postal In- eign relations of the United States that spector and the Chief Privacy Officer has been determined under the Execu- will ensure within their respective tive Order or prior Orders to require areas of jurisdiction: protection against unauthorized disclo- (1) Postal Service-wide compliance sure and has been so designated. with this policy and related standards (2) Derivative Classification means the and procedures; and carrying forward of a classification (2) Implementation of remedial ac- from one document to a newly created tion when violations or attempted vio- document that contains national secu- lations of these standards and proce- rity information which is in substance dures occur. the same as information that is cur- (b) Custodians. All custodians are re- rently classified. sponsible for insuring that information (3) In the Custody of the Postal Service security standards and procedures are means any national security informa- followed and that all relevant employ- tion transmitted to and held by the ees participate in the information se- U.S. Postal Service for the information curity awareness programs. and use of postal officials. (This does [40 FR 45726, Oct. 2, 1975, as amended at 60 FR not include any national security in- 57345, Nov. 15, 1995; 68 FR 56560, Oct. 1, 2003] formation in the U.S. Mails.) (c) Responsibility and authority. (1) § 267.4 Information security standards. The Manager, Payroll Accounting and (a) The Postal Service will operate Records, serves as the USPS National under a uniform set of information se- Security Information Oversight Offi- curity standards which address the fol- cer. This officer shall: lowing functional aspects of informa- (i) Conduct an active oversight pro- tion flow and management: gram to ensure that the appropriate (1) Information system development, provisions of these regulations are (2) Information collection, complied with;

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(ii) Chair a committee composed of (viii) Report to the USPS Security the Manager, Payroll Accounting and Officer any incidents of possible loss or Records; the Chief Postal Inspector compromise of national security infor- (USPS Security Officer); the General mation. Counsel; the Executive Assistant to the (2) The USPS Security Officer (the Postmaster General; and the Director, Chief Postal Inspector) shall: Operating Policies Office; or their des- (i) Provide technical guidance to the ignees, with authority to act on all Manager, Payroll Accounting and suggestions and complaints concerning Records in implementing the national compliance by the Postal Service with security information program; the regulations in this part; (ii) Conduct investigations into re- (iii) Ensure that appropriate and ported program violations or loss or prompt corrective action is taken possible compromise of national secu- whenever a postal employee know- rity information and report any actual ingly, willfully and without authoriza- loss or compromise to the originating tion: agency; (A) Discloses national security infor- (iii) Periodically conduct an audit of mation properly classified under the the USPS national security informa- Executive order, or prior orders, tion program; (B) Compromises properly classified (iv) Process requests for sensitive information through negligence, or clearances; conduct the appropriate in- (C) Violates any provisions of these vestigations and grant or deny a sen- regulations or procedures; sitive clearance to postal employees (iv) Establish, staff, and direct ac- having an official ‘‘need to know’’ na- tivities for controlling documents con- tional security information; and taining national security information (v) Report to the Attorney General at USPS Headquarters and to provide any evidence of possible violations of functional direction to the field. federal criminal law by a USPS em- (v) In conjunction with the USPS Se- ployee and of possible violations by curity Officer, prepare and issue in- any other person of those federal crimi- structions for the control, protection, nal laws. and derivative classification of na- (3) All postal employees who have ac- tional security information in the cus- cess to national security information tody of, and use by, the Postal Service. shall: These instructions shall include requirements that: (i) Sign a nondisclosure agreement; (A) A demonstrable need for access to (ii) Be familiar with and follow all national security information is estab- Program regulations and instructions; lished before requesting the initiation (iii) Actively protect and be account- of administrative clearance procedures; able for all national security informa- (B) Ensure that the number of people tion entrusted to their care; granted access to national security in- (iv) Disclose national security infor- formation is reduced to and maintained mation only to another individual who at the minimum number consistent is authorized access; with operational requirements and (v) Immediately report to the Man- needs; ager, Payroll Accounting and Records (vi) Establish, staff and direct activi- and the USPS Security Officer any sus- ties for controlling documents con- pected or actual loss or compromise of taining national security information national security information; and at USPS Headquarters and provide (vi) Be subject to administrative functional direction to each Regional sanctions should requirements (ii) Records Control Officer; through (v) not be followed. (vii) As part of the overall program (d) Derivative classification. When ap- implementation, develop a training plying derivative classifications to doc- program to familiarize appropriate uments created by the Postal Service, postal employees of the requirements the Postal Service shall: for control, protection and classifica- (1) Respect original classification de- tion; and cisions;

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(2) Verify the information’s current tional security information shall be re- level of classification so far as prac- ferred to the originating agency. ticable before applying the markings; (39 U.S.C. 401 (2), (10), 404(a)(7)) and (3) Carry forward to any newly cre- [44 FR 51224, Aug. 31, 1979, as amended at 45 FR 30069, May 7, 1980; 49 FR 22476, May 30, ated documents the assigned dates or 1984; 60 FR 57345, 57346, Nov. 15, 1995; 64 FR events for declassification or review 41291, July 30, 1999; 68 FR 56560, Oct. 1, 2003] and any additional authorized markings in accordance with section 2 of the PART 268—PRIVACY OF INFORMA- Executive order. TION—EMPLOYEE RULES OF (e) General provisions—(1) Dissemina- CONDUCT tion. National security information received by the U.S. Postal Service shall Sec. not be further disseminated to any 268.1 General principles. other agency without the consent of 268.2 Consequences of non-compliance. the originating agency. AUTHORITY: 39 U.S.C. 401; 5 U.S.C. 552a. (2) Disposal. Classified documents no longer needed by the Postal Service § 268.1 General principles. shall be either properly destroyed or In order to conduct its business, the returned to the originating agency. Postal Service has the need to collect (3) Freedom of Information Act or various types of personally identifiable mandatory review requests. information about its customers, em- (i) Requests for classified documents ployees and other individuals. Informa- made under the Freedom of Informa- tion of this nature has been entrusted tion Act (FOIA) and mandatory review to the Postal Service, and employees requests (requests under Section 3–501 handling it have a legal and ethical ob- of the Executive Order for the declas- ligation to hold it in confidence and to sification and release of information), actively protect it from uses other than those compatible with the pur- including requests by the news media, pose for which the information was col- should be submitted to: Manager, lected. This obligation is legally im- Records Office, U.S. Postal Service, 475 posed by the Privacy Act of 1974, which L’Enfant Plaza, SW., Washington, DC places specific requirements upon all 20260. Federal agencies, including the Postal (ii) In response to an FOIA request or Service, and their employees. In imple- a mandatory review request, the Postal mentation of these requirements, the Service shall not refuse to confirm the following rules of conduct apply: existence or non-existence of a docu- (a) Except as specifically authorized ment, unless the fact of its existence or in § 266.4(b)(2) of this chapter, no em- non-existence would itself be classifi- ployee shall disclose, directly or indi- able. rectly, the contents of any record (iii) The Postal Service shall forward about another individual to any person all FOIA and mandatory review re- or organization. Managers are to pro- quests for national security informa- vide guidance in this regard to all em- tion in its custody (including that ployees who must handle such informa- within records derivatively classified tion. by the USPS) to the originating agency (b) No employee will maintain a secret for review unless the agency objects on system of records about individuals. All the grounds that its association with records systems containing personally the information requires protection. identifiable information about individuals must be reported to the Manager, The requester shall be notified that: Records Office. (A) The request was referred; and (c) All employees shall adhere strict- (B) The originating agency will pro- ly to the procedures established by the vide a direct response. U.S. Postal Service to ensure the con- (4) Research requests. Requests from fidentiality and integrity of informa- historical researchers for access to nation about individuals that is collected, maintained and used for official Postal

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Service business. Employees shall be PART 273—ADMINISTRATION OF held responsible for any violation of PROGRAM FRAUD CIVIL REM- these procedures. EDIES ACT [45 FR 44273, July 1, 1980, as amended at 60 FR 57346, Nov. 15, 1995; 68 FR 56560, Oct. 1, Sec. 2003] 273.1 Purpose. 273.2 Definitions. § 268.2 Consequences of non-compli- 273.3 Liability for false claims and state- ance. ments. (a) The Privacy Act authorizes any 273.4 Non-exclusivity of penalty authority. 273.5 Investigations of alleged violations. individual, whether or not an em- 273.6 Evaluation by reviewing official. ployee, to bring a civil action in U.S. 273.7 Concurrence of Attorney General. District Court to obtain judicial review 273.8 Issuance of complaint. of the failure of the Postal Service to 273.9 Collection of civil penalties or assess- comply with the requirements of the ments. Act or its implementing regulations. In 273.10 Reports. certain instances of willful or inten- AUTHORITY: 31 U.S.C. Chapter 38; 39 U.S.C. tional non-compliance, the plaintiff 401. may recover damages from the Postal SOURCE: 52 FR 12901, Apr. 20, 1987, unless Service in the minimum amount of otherwise noted. $1,000 together with costs of the action and attorney fees. § 273.1 Purpose. (b) The Act provides criminal sanc- This part establishes procedures for tions for individuals, including employ- imposing civil penalties and assess- ees, who violate certain of its provi- ments under the Program Fraud Civil sions. Remedies Act of 1986 (codified at 31 (1) Any officer or employee who, by U.S.C. 3801–3812) against any person virtue of his employment or position, who makes, submits, or presents, or has possession of, or access to, official causes to be made, submitted, or pre- records which contain individually sented, a false fictitious, or fraudulent identifiable information and who, claim or written statement to the knowing that disclosure of the specific Postal Service. Procedures governing material is prohibited by Postal Serv- the hearing and appeal rights of any ice regulations, willfully discloses the person alleged to be liable for such pen- material to a person or agency not en- alties and assessments are set forth in titled to receive it, shall be guilty of a part 962 of this title. misdemeanor and fined not more than $5,000. § 273.2 Definitions. (2) Any officer or employee who will- (a) Claim means any request, demand, fully maintains a system of records or submission: without meeting the notice require- (1) Made to the Postal Service for ments set forth in Postal Service regu- property, services, or money (including lations shall be guilty of a mis- money representing grants, loans, in- demeanor and fined not more than surance, or benefits); or $5,000. (2) Made to a recipient of property, (3) Any person who knowingly and services, or money from the Postal willfully requests or obtains any record Service or to a party to a contract with concerning another individual from the the Postal Service: Postal Service under false pretense (i) For property or services if the shall be guilty of a misdemeanor and United States: fined not more than $5,000. (A) Provided such property or serv- (c) In addition to the criminal sanc- ices; tions, any employee violating any pro- (B) Provided any portion of the funds visions of these rules of conduct is sub- for the purchase of such property or ject to disciplinary action which may services; or result in dismissal from the Postal (C) will reimburse such recipient or Service. party for the purchase of such property [40 FR 45726, Oct. 2, 1975] or services; or

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(ii) For the payment of money (in- (i) Respondent refers to any person al- cluding money representing grants, leged to be liable for civil penalty or loans, insurance or benefits) if the assessment under 31 U.S.C. 3802. United States: (j) Reviewing Official refers to the (A) Provided any portion of the General Counsel of the Postal Service money requested or demanded; or or any designee within the Law Depart- (B) Will reimburse such recipient or ment who serves in a position for party for any portion of the money which the rate of basic pay is not less paid on such request or demand; or than the minimum rate of basic pay for (3) Made to the Postal Service which grade GS–16 under the General Sched- has the effect of decreasing an obliga- ule. (k) Statement means any representation to pay or account for property, tion, certification, affirmation, docu- services, or money. ment, record, or accounting or book- (b) Complaint refers to the adminis- keeping entry made: trative Complaint served by the Re- (1) With respect to a claim or to ob- viewing Official on a Respondent pur- tain the approval or payment of a suant to § 273.8. claim (including relating to eligibility (c) Investigating Official refers to the to make a claim); or Inspector General of the Postal Service (2) With respect to (including relat- or any designee within the United ing to eligibility for)— States Office of the Inspector General (i) A contract with, or a bid or pro- who serves in a position for which the posal for a contract with; or rate of basic pay is not less than the (ii) A grant, loan, or benefit from, the minimum rate of basic pay for grade Postal Service, or any State, political GS–15 under the General Schedule. subdivision of a State, or other party, (d) Judicial Officer refers to the Judi- if the United States Government pro- cial Officer or Acting Judicial Officer vides any portion of the money or prop- of the United States Postal Service or erty under such contract or for such for purposes other than specified in grant, loan, or benefit, or if the Gov- § 962.21 of this title any designee within ernment will reimburse such State, po- the Judicial Officer Department. litical subdivision, or party for any (e) Knows or has reason to know, for portion of the money or property under purposes of establishing liability under such contract or for such grant, loan or 31 U.S.C. 3802, means that, with respect benefit. to a claim or statement, although no [52 FR 12901, Apr. 20, 1987, as amended at 56 proof of specific intent to defraud is re- FR 55825, Oct. 30, 1991; 67 FR 16024, Apr. 4, quired, a person: 2002; 72 FR 39012, July 17, 2007] (1) Has actual knowledge that the § 273.3 Liability for false claims and claim or statement is false, fictitious, statements. or fraudulent; (2) Acts in deliberate ignorance of the Section 3802 of title 31, United States truth or falsity of the claim or state- Code, provides for liability as follows: (a) Claims. (1) Any person who makes, ment; or presents, or submits, or causes to be (3) Acts in reckless disregard of the made, presented, or submitted, a claim truth or falsity of the claim or state- that the person knows or has reason to ment. know— (f) Person refers to any individual, (i) Is false, fictitious, or fraudulent; partnership, corporation, association, or or private organization. (ii) Includes or is supported by any (g) Postmaster General refers to the written statement asserting a material Postmaster General of the United fact which is false, fictitious, or fraud- States or his designee. ulent; or (h) Presiding Officer refers to an Ad- (iii) Includes or is supported by any ministrative Law Judge designated by written statement that— the Judicial Officer to conduct a hear- (A) Omits a material fact; ing authorized by 31 U.S.C. 3803 in ac- (B) Is false, fictitious, or fraudulent cordance with Part 962 of this title. as a result of such omission; and

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(C) Is a statement in which the per- Shall be subject to, in addition to any son making, presenting, or submitting other remedy that may be prescribed such statement has a duty to include by law, a civil penalty of not more such material fact; or than $5,500 for each such statement. (iv) Is for payment for the provision (2) Each written representation, cer- of property or services which the per- tification, or affirmation constitutes a son has not provided as claimed separate statement. (3) A statement shall be considered Shall be subject to, in addition to any made, presented, or submitted to the other remedy that may be prescribed Postal Service when such statement is by law, a civil penalty of not more actually made to an agent, fiscal inter- than $5,500 for each such claim. mediary, or other entity, including any (2) Each voucher, invoice, claim State or political subdivision thereof, form, or other individual request or de- acting for or on behalf of the Postal mand for property, services, or money Service. constitutes a separate claim. (c) In any case in which it is deter- (3) A claim shall be considered made, mined that more than one person is lia- presented, or submitted to the Postal ble for making a claim or statement Service, recipient, or party when such under this section, the civil penalty re- claim is actually made to an agent, fis- ferred to in paragraph (a)(1) of this sec- cal intermediary, or other entity, in- tion may be imposed on each such per- cluding any State or political subdivi- son without regard to the amount of sion thereof, acting for or on behalf of any penalties collected or demanded the Postal Service, recipient, or party. from others. (4) Each claim for property, services, (d) In any case in which it is deter- or money is subject to the civil penalty mined that more than one person is lia- referred to in paragraph (a)(1) of this ble for making a claim under this sec- section regardless of whether such tion on which the Government has property, service, or money is actually made payment, an assessment may be delivered or paid. imposed against any such person or (5) If the Government has made pay- jointly and severally against any comment on a claim, a person subject to bination of such persons. The aggre- the civil penalty referred to in para- gate amount of the assessments col- graph (a)(1) of this section shall also be lected with respect to such claim shall subject to an assessment of not more not exceed twice the portion of such than twice the amount of such claim or claim determined to be in violation of twice the amount of that portion paragraph (a)(1) of this section. thereof that is determined to be in violation of paragraph (a)(1) of this sec- [52 FR 12901, Apr. 20, 1987, as amended at 56 FR 55825, Oct. 30, 1991; 61 FR 55750, Oct. 29, tion. This assessment shall be in lieu of 1996] damages sustained by the United States because of such claim. § 273.4 Non-exclusivity of penalty au- (b) Statements. (1) Any person who thority. makes, presents, or submits, or causes (a) A determination by the Reviewing to be made, presented, or submitted, a Official that there is adequate evidence written statement that— to believe that a person is liable under (i) The person knows or has reason to 31 U.S.C 3802, or a final determination know— that a person is liable under such stat- (A) Asserts a material fact which is ute, may provide the Postal Service false, fictitious, or fraudulent; or with grounds for commencing any ad- (B) Is false, fictitious, or fraudulent ministrative or contractual action because it omits a material fact that against such person which is author- the person making, presenting or sub- ized by law and which is in addition to mitting such statement had a duty to any action against such person under include in such statement; and chapter 38 of title 31, United States (ii) Contains or is accompanied by an Code. express certification or affirmation of (b) In the case of an administrative the truthfulness and accuracy of the or contractual action to suspend or contents of the statement. debar any person from eligibility to

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enter into contracts with the Postal ble, a description of any evidence that Service, a determination referred to in tends to support a conclusion that such paragraph (a) of this section shall not statute has not been violated; be considered as a conclusive deter- (3) An estimate of the amount of mination of such person’s responsi- money or the value of property or serv- bility pursuant to Postal Service pro- ices allegedly requested or demanded curement regulations. in violation of 31 U.S.C. 3802; (4) A statement of any exculpatory or § 273.5 Investigations of alleged violations. mitigating circumstances which may relate to the claims or statements (a) Investigations of allegations of li- under investigation; ability under 31 U.S.C. 3802 shall be (5) A statement of the amount of pen- conducted by the Investigating Offi- alties and assessments that, consid- cial. ering the information described in (b)(1) For purposes of an investiga- paragraphs (c) (3) and (4) of this section under this part, the Investigating tion, the Investigating Official rec- Official may issue a subpoena requiring ommends be demanded from the person the production of all information, doc- alleged to be liable; and uments, reports, answers, records, accounts, papers, and data not otherwise (6) An estimate of the prospects of reasonably available to the Postal collecting the amount specified in Service. Any subpoena issued by the paragraph (c)(5) of this section, and Investigating Official under this au- any reasons supporting such estimate. thority shall cite 31 U.S.C. 3804(a) as (d) Nothing in these regulations the authority under which it is issued, modifies any responsibility of the In- shall be signed by the Investigating Of- vestigating Official to report violations ficial, and shall command each person of criminal law to the Attorney Gen- to whom it is directed to produce the eral specified documentary material at a [52 FR 12901, Apr. 20, 1987, as amended at 56 prescribed time and place. FR 55825, Oct. 30, 1991] (2) In the case of contumacy or refusal to obey a subpoena issued pursu- § 273.6 Evaluation by reviewing offi- ant to paragraph (b)(1) of this section, cial. the district courts of the United States (a) Based upon the investigatory re- have jurisdiction to issue an appro- port prepared by the Investigating Offi- priate order for the enforcement of cial, the Reviewing Official shall deter- such subpoena. Any failure to obey mine whether there is adequate evi- such order of the court may be punish- dence to believe that a person is liable able as contempt. In any case in which under 31 U.S.C. 3802, and, if so, whether the Postal Service seeks the enforce- prosecution would likely result in the ment of a subpoena under this section, imposition and collection of civil pen- the Postal Service shall request the At- alties and applicable assessments. torney General to petition the district court for the district in which the per- (b) If the Reviewing Official deter- son receiving the subpoena resides or mines that a case has merit and should conducts business to issue such an be referred to the Judicial Officer for order. assignment to a Presiding Officer, he (c) Upon completing an investigation must first transmit to the Attorney under this part, the Investigating Offi- General a written notice containing cial shall submit to the Reviewing Offi- the following information: cial a report containing the findings (1) A statement setting forth the Re- and conclusions of his investigation, viewing Official’s reasons for proposing including: to refer the case to a Presiding Officer; (1) A description of the claims or (2) A description of the claims or statements for which liability under 31 statements for which liability under 31 U.S.C. 3802 is alleged; U.S.C. 3802 is alleged; (2) A description of any evidence (3) A statement specifying the evi- which supports allegations of liability dence that supports the allegations of under 31 U.S.C. 3802, or where applica- liability;

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(4) An estimate of the amount of ing that the continuation of any pro- money or the value of property or serv- ceeding under the Program Fraud Civil ices allegedly requested or demanded Remedies Act with respect to a claim in violation of 31 U.S.C. 3802; or statement may adversely affect any (5) A statement of any exculpatory or pending or potential criminal or civil mitigating circumstances which may action related to such claim or state- relate to the claims or statements ment, such proceeding shall be imme- under investigation; diately stayed and may be resumed (6) A statement of the amount of pen- only upon written authorization of the alties and assessments that, consid- Attorney General. ering the factors listed in paragraphs (b)(4) and (5) of this section, the Re- § 273.8 Issuance of complaint. viewing Official recommends be de- (a) If the Attorney General or his manded from the person alleged to be designee approves the referral of alle- liable; and gations of liability to the Judicial Offi- (7) A statement that, in the opinion cer, the Reviewing Official shall serve of the Reviewing Official, there is a on the Respondent, pursuant to para- reasonable prospect of collecting the graph (b) of this section, a Complaint, amount specified in paragraph (b)(6) of which: this section and the reasons supporting (1) Specifies the allegations of liabil- such statement. ity against the Respondent, including (c) No allegations of liability under the statutory basis for liability; 31 U.S.C. 3802 with respect to any claim (2) Identifies the claims or state- made, presented, or submitted by any ments that are the basis for the alleged person shall be referred to the Judicial liability, and the reasons why liability Officer if the Reviewing Official deter- allegedly arises from such claims or mines that (1) an amount of money in statements; excess of $150,000; or (2) property or (3) Specifies the amount of penalties service with a value in excess of or assessments the Postal Service $150,000 is requested or demanded in seeks to impose; violation of section 3802 in such claim (4) Informs the Respondent of his or in a group of related claims which right to request an oral hearing before, are submitted at the time such claim is or a decision on the record by, a Pre- submitted. siding Officer concerning the allegations of liability and the amount of § 273.7 Concurrence of Attorney Gen- proposed penalties or assessments; eral. (5) Informs the Respondent of how to (a) The Attorney General is required request a hearing described in para- by 31 U.S.C. 3803(b) to respond to the graph (a)(4) of this section; Reviewing Official’s written notice de- (6) Includes a copy of the procedures scribed in § 273.6 within 90 days. The which govern hearings under the Pro- Reviewing Official may refer allega- gram Fraud Civil Remedies Act, and tions of liability to the Judicial Officer which are set forth in part 962 of this only if the Attorney General or his des- title; and ignee approves such action in a written (7) Notifies the Respondent that his statement which specifies: or her failure to request a hearing on (1) That the Attorney General or his the issues raised by the Complaint designee approves the referral to the within 30 days of its receipt may result Judicial Officer of the allegations of li- in the imposition of the proposed pen- ability set forth in the notice described alty and assessments pursuant to in § 273.6; and §§ 962.4(a) and 962.15(d) of this title. (2) That the initiation of a pro- (b) Service of a Complaint issued ceeding under the Program Fraud Civil under paragraph (a) of this section Remedies Act is appropriate. must be effected by registered or cer- (b) If at any time after the Attorney tified mail, return-receipt requested, or General approves the referral of a case by personal delivery. In the case of per- to the Judicial Officer, the Attorney sonal service, the person making serv- General or his designee transmits to ice shall, if possible, secure from the the Postmaster General a written find- person sought to be served, or his or

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her agent, a written acknowledgment (1) A summary of matters referred by of receipt, showing the date and time the Investigating Official to the Re- of such receipt. If the person upon viewing Official under this part; whom service is made declines to ac- (2) A summary of matters trans- knowledge receipt, the person effecting mitted to the Attorney General under service shall execute a statement, indi- this part; cating the time, place and manner of (3) A summary of all hearings con- service, which shall constitute evi- ducted by a Presiding Officer under dence of service. part 962 of this title, and the results of such hearings; and [52 FR 12901, Apr. 20, 1987, as amended at 56 (4) A summary of the actions taken FR 55825, Oct. 30, 1991] during the reporting period to collect any civil penalty or assessment im- § 273.9 Collection of civil penalties or posed under the Program Fraud Civil assessments. Remedies Act. (a) Any penalty or assessment imposed under the Program Fraud Civil Damage to or Destruction of Firm Remedies Act may be recovered in a Mailings civil action brought by the Attorney General. In any such action, no matter that was raised or that could have been PART 281—FIRM MAILINGS DAM- raised in a hearing conducted under AGED OR DESTROYED THROUGH part 962 of this title or pursuant to ju- TRANSPORTATION ACCIDENTS dicial review under 31 U.S.C. 3805 may OR CATASTROPHES be raised as a defense and the determination of liability and the deter- Sec. mination of amounts of penalties and 281.1 Notification of firm mailers. 281.2 Action required by processing postal assessments shall not be subject to re- officials. view. A civil action to recover a pen- 281.3 Postal inspector responsibilities. alty or assessment shall be commenced 281.4 Disclaimer. within three years after the date on AUTHORITY: 39 U.S.C. 401, 403, and 404. which the determination of liability for such penalty or assessment be- § 281.1 Notification of firm mailers. comes final. Whenever bulk firm mail shipments (b) The amount of any penalty or as- are involved in transportation acci- sessment which has become final may dents or catastrophes, such as train or be collected by administrative offset in highway accidents, fire, flood, etc., it accordance with 31 U.S.C 3716, 3807. will be the responsibility of the sec- (c) Any penalty or assessment im- tional center director of customer serv- posed by the Postal Service under this ices at the office of mailing to give part shall be deposited in the Postal known mailers timely notification of Service Fund established by section the incident and its effect on their mail 2003 of title 39. shipment(s). § 273.10 Reports. [39 FR 20974, June 17, 1974, as amended at 40 FR 2179, Jan. 10, 1975] (a) Not later than October 31 of each year, the Postmaster General shall pre- § 281.2 Action required by processing pare and transmit to the appropriate postal officials. committees and subcommittees of the Postal officials processing salvable Congress an annual report summa- mail recovered from the scene of an ac- rizing actions taken under the Pro- cident or catastrophe are responsible gram Fraud Civil Remedies Act during for giving timely notification of the in- the most recent 12-month period end- cident to the sectional center director ing the previous September 30. of customer services at the office of (b) The report referred to in para- mailing. The notification should in- graph (a) of this section shall include clude, but not be limited to: the following information for the pe- (a) The determinable names of the riod covered by the report: major mailers involved;

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(b) The nature and extent of damage where no postal officials are involved or destruction; in processing affected mail, then the (c) Anticipated delivery delay; and investigating postal inspector will take (d) If known, the shipment delivery necessary action to insure that appro- destination(s). priate notification is made. [39 FR 20974, June 17, 1974, as amended at 40 [39 FR 20974, June 17, 1974] FR 2179, Jan. 10, 1975] § 281.4 Disclaimer. § 281.3 Postal inspector responsibilities. The Postal Service will not be liable in damages for any loss occasioned by The postal inspector investigating any failure to notify firm mailers in the incident should assure that the accordance with this part of damage to processing postal officials are fulfilling or destruction of firm mailings. their notification responsibilities on a timely basis. Should the situation arise [39 FR 20974, June 17, 1974]

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PART 310—ENFORCEMENT OF THE ‘‘piggy-backed’’ delivery with ad- PRIVATE EXPRESS STATUTES dressed articles of merchandise, publications, or other items. Selective deliv- Sec. ery plans do not include distributions 310.1 Definitions. of materials without written addresses 310.2 Unlawful carriage of letters. to passersby on a particular street cor- 310.3 Exceptions. ner, or to all residents or randomly se- 310.4 Responsibility of carriers. lected residents of an area. A message 310.5 Payment of postage on violation. bearing the name or address of a spe- 310.6 Advisory opinions. cific person or place is a letter even if 310.7 Amendment of regulations. it is intended by the sender to be read AUTHORITY: 39 U.S.C. 401, 404, 601–606; 18 or otherwise used by some person or U.S.C. 1693–1699. persons other than or in addition to SOURCE: 39 FR 33211, Sept. 16, 1974, unless the addressee. otherwise noted. (4) Methods by which messages are recorded on tangible objects include, § 310.1 Definitions. but are not limited to, the use of writ- (a) Letter is a message directed to a ten or printed characters, drawing, specific person or address and recorded holes, or orientations of magnetic par- in or on a tangible object, subject to ticles in a manner having a predeter- the following: mined significance. (1) Tangible objects used for letters (5) Whether a tangible object bears a include, but are not limited to, paper message is to be determined on an ob- (including paper in sheet or card form), jective basis without regard to the in- recording disks, and magnetic tapes. tended or actual use made of the object Tangible objects used for letters do not sent. include (i) objects the material or (6) Identical messages directed to shape and design of which make them more than one specific person or ad- valuable or useful for purposes other dress or separately directed to the than as media for long-distance com- same person or address constitute sepa- munications, unless they are actually rate letters. used as media for personal and business (7) The following are not letters with- correspondence, and (ii) outsized, rigid in the meaning of these regulations: 1 objects not capable of enclosure in en- (i) Telegrams. velopes, sacks, boxes or other con- (ii) Checks, drafts, promissory notes, tainers commonly used to transmit let- bonds, other negotiable and nonnego- ters or packets of letters. tiable financial instruments, stock cer- (2) Message means any information or tificates, other securities, insurance intelligence that can be recorded as de- policies, and title policies when scribed in paragraph (a)(4) of this sec- shipped to, from, or between financial tion. institutions. (3) A message is directed to a ‘‘spe- (A) As used above, checks and drafts cific person or address’’ when, for ex- include documents intrinsically related ample, it, or the container in which it to and regularly accompanying the is carried, singly or with other messages, identical or different, is marked 1 Several of the items enumerated in this for delivery to a specific person or paragraph (a)(7) do not self-evidently lie out- place, or is delivered to a specific per- side of the definition of ‘‘letter’’. To the ex- son or place in accordance with a selec- tent, however, that there is any question tive delivery plan. Selective delivery whether these items may properly be excluded by definition, the Postal Service has plans include delivery to particular determined by adoption of these regulations persons or addresses by use of detached that the restrictions of the Private Express address labels or cards; address lists; Statutes are suspended pursuant to 39 U.S.C. memorized groups of addresses; or 601(b).

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movement of checks or drafts within or catalog. An item distributed pri- the banking system. ‘‘Checks’’ do not vately, or privately and by mail, to include materials accompanying the fewer than 25 separate persons or movement of checks to financial insti- places will generally not be treated as tutions from persons who are not fi- a book or catalog falling within this nancial institutions, or vice versa, ex- exclusion. cept such materials as would qualify (vi) Matter sent from a printer, sta- under § 310.3(a) if ‘‘checks’’ were treat- tioner, or similar source, to a person ed as cargo. Specifically, for example, ordering such matter for use as his let- ‘‘checks’’ do not include bank state- ters. This exclusion applies whether or ments sent to depositors showing de- not the printer, stationer, or similar posits, debits, and account balances. source is owned by or affiliated with (B) As used above, financial institu- the person who orders such matter for tions means: use as his letters. (1) As to checks and drafts: banks, (vii) Letters sent to a records storage savings banks, savings and loan insti- center exclusively for storage, letters tutions, credit unions, and their of- sent exclusively for destruction, letters fices, affiliates, and facilities. retrieved from a records storage cen- (2) As to other instruments: institu- ter, and letters sent as part of a house- tions performing functions involving hold or business relocation. the bulk generation, clearance, and (viii) Tags, labels, stickers, signs or transfer of such instruments. posters the type-size, layout or phys- (iii) Abstracts of title, mortgages and ical characteristics of which indicate other liens, deeds, leases, releases, arti- they are primarily intended to be at- cles of incorporation, papers filed in tached to other objects for reading. lawsuits or formal quasi-judicial pro- (ix) Photographic material being sent ceedings, and orders of courts and of by a person to a processor and proc- quasi-judicial bodies. essed photographic material being re- (iv) Newspapers and periodicals. turned from the processor to the per- (v) Books and catalogs consisting of son sending the material for proc- 24 or more bound pages with at least 22 essing. printed, and telephone directories. Sep- (x) Copy sent from a person to an arate letters of less than 24 bound and independent or company-owned printer 22 printed pages bound to other mate- or compositor, or between printers and rial do not qualify for this exclusion. In compositors, and proofs or printed determining whether separate letters matter returned from the printer or have been bound to other material, the compositor to the office of the person following factors will be considered, who initially sent the copy. along with any other relevant factors: (xi) Sound recordings, films, and Whether the parts are visually similar; packets of identical printed letters whether the parts were printed and containing messages all or the over- bound together at the same time and whelming bulk of which are to be dis- by the same process; whether the bind- seminated to the public. The ‘‘public’’ ing serves an important purpose and does not include individuals residing at has been a longstanding practice; and the place of address; individuals em- whether the same individual reads all ployed by the organization doing busi- parts of the bound document. Ordi- ness at the place of address (whether or narily, books and catalogs deal with not the actual place of employment is matters of interest to, and are intended the place of address); individuals who for, a substantial number of recipients. are members of an organization, if an In addition, books generally contain a organization is located at the place of substantial number of pages. Accord- address; or other individuals who, indi- ingly, this exclusion will not apply vidually or as members of a group, are when the nature of the message con- reasonably identifiable to the sender. veyed, the limited numbers of pub- (xii) Computer programs recorded on lished copies and of recipients, the lim- media suitable for direct input. For the ited number of pages, or other relevant conditions under which the Private Ex- factors suggest that it is not appro- press Statutes are suspended for data priate to treat the material as a book processing materials, see § 320.2.

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(b) Packet means two or more letters, (b) Activity described in paragraph identical or different, or two or more (a) of this section is lawful with respect packets of letters, under one cover or to a letter if: otherwise bound together. As used in (1)(i) The letter is enclosed in an en- these regulations, unless the context velope or other suitable cover; otherwise requires, ‘‘letter’’ or ‘‘let- (ii) The amount of postage which ters’’ includes ‘‘packet’’ or ‘‘packets’’. would have been charged on the letter (c) Person means an individual, cor- if it had been sent through the Postal poration, association, partnership, gov- Service is paid by stamps, or postage ernmental agency, or other organiza- meter stamps, on the cover or by other tion or entity. methods approved by the Postal Serv- (d) Post routes are routes on which ice; mail is carried by the Postal Service, (iii) The name and address of the per- and includes post roads as defined in 39 son for whom the letter is intended ap- U.S.C. 5003, as follows: pear on the cover; (1) The waters of the United States, (iv) The cover is so sealed that the during the time the mail is carried letter cannot be taken from it without thereon; defacing the cover; (2) Railroads or parts of railroads and (v) Any stamps on the cover are can- air routes in operation; celed in ink by the sender; and (3) Canals, during the time the mail (vi) The date of the letter, or of its is carried thereon; transmission or receipt by the carrier, (4) Public roads, highways, and toll is endorsed on the cover in ink by the roads during the time the mail is car- sender or carrier, as appropriate; or ried thereon; and (2)(i) The activity is in accordance with the terms of a written agreement (5) Letter-carrier routes established between the shipper or the carrier of for the collection and delivery of mail. the letter and the Postal Service. Such (e) Private carriage, private carrier, and an agreement may include some or all terms of similar import used in connec- of the provisions of paragraph (b)(1) of tion with the Private Express Statutes this section, or it may change them, or these regulations mean carriage by but it must: anyone other than the Postal Service, (A) Adequately ensure payment of an regardless of any meaning ascribed to amount equal to the postage to which similar terms under other bodies of law the Postal Service would have been en- or regulation. titled had the letters been carried in (f) The Private Express Statutes are set the mail; forth in 18 U.S.C. 1693–1699 and 39 (B) Remain in effect for a specified U.S.C. 601–606 (1970). period (subject to renewals); and (g) The term identical printed letters (C) Provide for periodic review, audit, includes letters that differ only in and inspection. name, address or serial number. (ii) Possible alternative arrange- [39 FR 33211, Sept. 16, 1974, as amended at 44 ments may include but are not limited FR 52833, Sept. 11, 1979; 45 FR 3034, Jan. 16, to: 1980; 45 FR 59873, Sept. 11, 1980; 48 FR 42354, (A) Payment of a fixed sum at speci- Sept. 27, 1982] fied intervals based on the shipper’s projected shipment of letters for a § 310.2 Unlawful carriage of letters. given period, as verified by the Postal (a) It is generally unlawful under the Service; or Private Express Statutes for any per- (B) Utilization of a computer record son other than the Postal Service in to determine the volume of letters any manner to send or carry a letter on shipped during an interval and the ap- a post route or in any manner to cause plicable postage to be remitted to the or assist such activity. Violation may Postal Service. result in injunction, fine or imprison- (c) The Postal Service may suspend ment or both and payment of postage the operation of any part of paragraph lost as a result of the illegal activity (b) of this section where the public in- (see § 310.5). terest requires the suspension.

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(d) Activity described in paragraph rying function), including but not lim- (a) of this section is permitted with re- ited to salary, annual vacation time, spect to letters which: absence allowed for illness, health ben- (1) Relate to some part of the cargo efits, workmen’s compensation insur- of, or to some article carried at the ance, and retirement benefits. same time by, the conveyance carrying (3) Separately incorporated carriers it (see § 310.3(a)); are separate entities for purposes of (2) Are sent by or addressed to the this exception, regardless of any sub- carrier (see § 310.3(b)); sidiary, ownership, or leasing arrange- (3) Are conveyed or transmitted with- ment. When, however, two concerns out compensation (see § 310.3(c)); jointly operate an enterprise with joint (4) Are conveyed or transmitted by employees and share directly in its rev- special messenger employed for the enues and expenses, either of the con- particular occasion only, provided that cerns may carry the letters of the joint not more than twenty-five such letters enterprise. are conveyed or transmitted by such (c) Private hands without compensa- special messenger (see § 310.3(d)); or tion. The sending or carrying of letters (5) Are carried prior or subsequent to without compensation is permitted. mailing (see § 310.3(e)). Compensation generally consists of a [39 FR 33211, Sept. 16, 1974, as amended at 45 monetary payment for services ren- FR 77029, Nov. 21, 1980] dered. Compensation may also consist, however, of non-monetary valuable § 310.3 Exceptions. consideration and of good will Thus, (a) Cargo. The sending or carrying of for example, when a business relation- letters is permissible if they accom- ship exists or is sought between the pany and relate in all substantial re- carrier and its user, carriage by the spects to some part of the cargo or to carrier of the user’s letter will ordi- the ordering, shipping or delivering of narily not fall under this exception; or, the cargo. when a person is engaged in the trans- (b) Letters of the carrier. (1) The send- portation of goods or persons for hire, ing or carrying of letters is permissible his carrying of letters ‘‘free of charge’’ if they are sent by or addressed to the for customers whom he does charge for person carrying them. If the individual the carriage of goods or persons does actually carrying the letters is not the not fall under this exception. person sending the letters or to whom (d) Special messenger. (1) The use of a the letters are addressed, then such in- special messenger employed for the dividual must be an officer or employee particular occasion only is permissible of such person (see § 310.3(b)(2)) and the to transmit letters if not more than letters must relate to the current busi- twenty-five letters are involved. The ness of such person. permission granted under this excep- (2) The fact that the individual actu- tion is restricted to use of messenger ally carrying the letters may be an of- service on an infrequent, irregular ficer or employee of the person sending basis by the sender or addressee of the the letters or to whom the letters are message. addressed for certain purposes does not (2) A special messenger is a person necessarily mean that he is an officer who, at the request of either the sender or employee for purposes of this excep- or the addressee, picks up a letter from tion. The following factors bear on the sender’s home or place of business qualifications for the exception: the and carries it to the addressees home carrying employee is employed for a or place of business, but a messenger or substantial time, if not fulltime (let- carrier operating regularly between ters must not be privately carried by fixed points is not a special messenger. casual employees); the carrying em- (e) Carriage prior or subsequent to mail- ployee carries no matter for other ing. (1) The private carriage of letters senders; the carrying employee is a which enter the mail stream at some regular salaried employee and shares in point between their origin and their all privileges enjoyed by other regular destination is permissible. Except as employees (including employees not provided in paragraph (e)(3) of this sec- engaged primarily by the letter car- tion, however, the carriage of letters

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from a place where they have been been entitled had it carried the letters opened, read, separated, or otherwise between their origin and destination. utilized, does not fall within this ex- (b) The amount equal to postage will ception even though such letters had be due and payable not later than 15 previously been in the mail stream. days after receipt of formal demand Similarly, the carriage of letters to a from the Inspection Service or the place where they will be consolidated Manager, Mailing Standards, USPS or otherwise utilized does not fall with- Headquarters, unless an appeal is in this exception even though they will taken to the Judicial Officer Depart- subsequently enter the mail stream. ment in accordance with rules of proce- (2) Examples of permitted activities dure set out in part 959 of this chapter. are the pickup and carriage of letters (c) Refusal to pay an unappealed de- which are delivered to post offices for mand or a demand that becomes final mailing; the pickup and carriage of let- after appeal will subject the violator to ters at post offices for delivery to ad- civil suit by the Postal Service to col- dressees; and the bulk shipment of in- lect the amount equal to postage. dividually addressed letters ultimately (d) The payment of amounts equal to carried by the Postal Service. postage on violation shall in no way (3) The private carriage of letters limit other actions to enforce the Pri- from branches of an organization to a vate Express Statutes by civil or crimi- location for preparation for mailing nal proceedings. does not constitute a consolidation. [39 FR 33211, Sept. 16, 1974, as amended at 69 The private carriage of letters from an FR 54006, Sept. 7, 2004; 75 FR 12123, Mar. 15, organization’s point of mail delivery to 2010] its branches in the locality does not constitute a separation. § 310.6 Advisory opinions. [39 FR 33211, Sept. 16, 1974, as amended at 44 An advisory opinion on any question FR 52834, Sept. 11, 1979; 45 FR 59873, Sept. 11, arising under this part and part 320 of 1980] this chapter may be obtained by writing the General Counsel, U.S. Postal § 310.4 Responsibility of carriers. Service, 475 L’Enfant Plaza SW., Wash- Private carriers are cautioned to ington, DC 20260–1100. A numbered se- make sure that their carriage of mat- ries of advisory opinions is available ter is lawful within the definition, ex- for inspection by the public in the Li- ceptions, suspension, and conditions brary of the U.S. Postal Service, and contained in this part and in part 320 of copies of individual opinions may be this chapter. They should take reason- obtained upon payment of charges for able measures to inform their cus- duplicating services. tomers of the contents of these regula- [75 FR 12123, Mar. 15, 2010] tions so that only proper matter is tendered to them for carriage. Carriers § 310.7 Amendment of regulations. should desist from carrying any matter when the form of shipment, identity of Amendments of the regulations in sender or recipient, or any other infor- this part and in part 320 may be made mation reasonably accessible to them only in accordance with the rule- indicates that matter tendered to them making provisions of the Administra- for carriage is not proper under these tive Procedure Act. regulations. [40 FR 23295, May 29, 1975]

§ 310.5 Payment of postage on violation. PART 320—SUSPENSION OF THE PRIVATE EXPRESS STATUTES (a) Upon discovery of activity made unlawful by the Private Express Stat- Sec. utes, the Postal Service may require 320.1 Definitions. any person or persons who engage in, 320.2 Suspension for certain data processing cause, or assist such activity to pay an materials. amount or amounts not exceeding the 320.3 Operations under suspension for cer- total postage to which it would have tain data processing materials.

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320.4 Suspension for certain letters of col- mestic point and a foreign point shall lege and university organizations. be deemed to begin at the time mate- 320.5 Suspension for certain international- rials of foreign origin are received at ocean carrier-related documents. the international gateway city or end 320.6 Suspension for extremely urgent letters. at the time materials of domestic ori- 320.7 Suspension for advertisements accom- gin leave the international gateway panying parcels or periodicals. city. This suspension does not apply to 320.8 Suspension for international re- carriages from or to originating offices mailing. that are neither part of the firm own- 320.9 Revocation or amendment of suspen- ing the data processing center nor data sions. processing customers of the firm own- AUTHORITY: 39 U.S.C. 401, 404, 601–606; 18 ing the data processing center. U.S.C. 1693–1699. (c) For purposes of this suspension, (1) ‘‘addressee’s next business day’’ § 320.1 Definitions. means the first calendar day, stated in The definitions in § 310.1 apply to part his local time, on which he conducts 320 as well. 1 business, following the calendar day of [39 FR 33212, Sept. 16, 1974] dispatch, stated in the sender’s local time; (2) ‘‘data processing’’ means § 320.2 Suspension for certain data electro-mechanical or electronic proc- processing materials. essing and includes the recording of (a) The operation of 39 U.S.C. 601(a) data by electro-mechanical or elec- (1) through (6) and § 310.2(b) (1) through tronic means for further processing; (6) of this chapter is suspended on all and (3) ‘‘data processing materials’’ post routes for data processing mate- means materials of all types that are rials defined in paragraph (c) of this sent exclusively for data processing section on the terms detailed in para- and are ready for immediate data proc- graph (b) of this section, subject to the essing, but only if they are produced operating requirements in § 320.3. recurringly in the course of the normal (b) The suspension referred to in business operations of the office origi- paragraph (a) of this section is for data nating them or receiving them back processing materials conveyed (1) to a from the processing center. The per- data processing center, if carriage is formance of clerical work which is completed within 12 hours or by noon merely preparatory and incidental to of the addressee’s next business day the commencement of data processing and if data processing work is com- is not, for purposes of this suspension, menced on such materials within 36 inconsistent with the requirement that hours of their receipt at the center; or the materials be sent exclusively for (2) back from the data processing cen- data processing and be ready for imme- ter to the address of the office origi- diate data processing. nating the incoming materials, if car- [44 FR 52834, Sept. 11, 1979] riage is completed within 12 hours or by noon of the addressee’s next busi- § 320.3 Operations under suspension ness day, and if data processing work for certain data processing mate- was commenced on the incoming materials. rials within 36 hours of their receipt at (a) Carriers intending to establish or the center. For purposes of the time alter operations based on the suspen- limitations for completion of delivery sion granted pursuant to § 320.2 shall, referred to in the preceding sentence, as a condition to the right to operate delivery of shipments between a do- under the suspension, notify the Man- ager, Mailing Standards, U.S. Postal 1 Several of the items enumerated in Service, 475 L’Enfant Plaza SW, Rm. § 310.1(a)(7) do not self-evidently lie outside 3436, Washington, DC 20260–3436, of of the definition of ‘‘letter’’. To the extent, their intention to establish such oper- however, that there is any question whether ations not later than the beginning of these items may properly be excluded by definition, the Postal Service has determined such operations. Such notification, on by adoption of these regulations that the re- a form available from the office of strictions of the Private Express Statutes Mailing Standards, shall include infor- are suspended pursuant to 39 U.S.C. 601(b). mation on the identity and authority

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of the carrier and the scope of its pro- Address lllllllllllllllllll posed operations. State of Incorporation lllllllllll (b) Carriers operating under the sus- Geographical Area To Be Served llllll pension granted pursuant to § 320.2 are 1. Designate the specific markets or areas responsible for making sure that their in which operations will be conducted. carriage of matter under the suspen- 2. Describe specifically any authorizations sion meets all conditions contained in issued by local, state, or federal regulatory § 320.2. (See § 310.4.) The containers or agencies under which operations will be con- covers of any matter carried under the ducted. suspension must be made available for (Signature of Officer) examination upon request by a properly identified representative of Mail- (Name and Title) ing Standards. Carrier records—either Subscribed and sworn to before me this in the form of notations on the con- ll day of lllll, 197ll. tainers or covers of any matter carried under the suspension granted pursuant Notary Public to § 320.2 or in the form of records kept Seal by employees of the actual times they My commission expires —————————— make delivery or pickup stops—must be sufficient to show that the delivery (NOTE: False statements contained herein of such matter was completed within are punishable by law, 18 U.S.C. 1001.) the applicable time limitation pre- [39 FR 33212, Sept. 16, 1974; 39 FR 34533, Sept. scribed in § 320.2. The provisions of this 26, 1974, as amended at 40 FR 23295, May 29, paragraph shall not restrict the Postal 1975; 44 FR 52835, Sept. 11, 1979; 69 FR 54006, Service in the exercise of search pow- Sept. 7, 2004; 75 FR 12123, Mar. 15, 2010] ers conferred upon it by law. (c) The filing of notifications under § 320.4 Suspension for certain letters this section does not relieve the oper- of college and university organiza- ator of responsibility for assuring that tions. its operations conform to applicable The operation of 39 U.S.C. 601(a) (1) statutes and regulations. through (6) and § 310.2(b) (1) through (6) (d) Failure to comply with the notifi- of this chapter is suspended on all post cation requirements of this section and routes to permit colleges and univer- carriage of material or other action in sities to carry in their internal mail violation of other provisions of this systems the letters of their bona fide part and of part 310 are grounds for ad- student or faculty organizations to ministrative revocation of the suspen- campus destinations. This suspension sion as to a particular carrier for a pe- does not cover the letters of faculty riod of not less than one year, in a pro- members, students, or organizations ceeding instituted by the General other than bona fide student or faculty Counsel, following a hearing by the Ju- organizations of the carrying college or dicial Officer Department in accord- university. Colleges and universities ance with the rules of procedure set choosing to provide their student or out in part 959 of this chapter. faculty organizations access to their NOTE: The form referred to in § 320.3 is re- internal mail systems are responsible produced below. for assuring that only letters of bona fide student or faculty organizations NOTICE OF INTENT TO ESTABLISH OPER- addressed to campus destinations are ATIONS UNDER SUSPENSION OF THE carried. (See § 310.4.) For purposes of PRIVATE EXPRESS STATUTES 1 this suspension, ‘‘internal mail sys- (SEE 39 CFR PART 320, SUSPENSION OF tems’’ are those which carry letters on, THE PRIVATE EXPRESS STATUTES) between, and among the various cam- puses of a single college or university Private Carriage of Letters and which operate in accordance with

Name of Carrier lllllllllllllll essing materials. This form should be used for an initial notice of operations and for 1 Information relates exclusively to oper- any amendments to the initial or subsequent ations under the suspension for data proc- notices.

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the Letters of the carrier exception in 39 (2) Letters sent from the 48 contig- CFR 310.3(b). uous states of the United States to other jurisdictions of the United States [44 FR 52835, Sept. 11, 1979] or to other nations are deemed ‘‘deliv- § 320.5 Suspension for certain inter- ered’’ when they are in the custody of national-ocean carrier-related docu- the international or overseas carrier at ments. its last scheduled point of departure The operation of 39 U.S.C. 601(a) (1) from the 48 contiguous states. Letters through (6) and § 310.2(b) (1) through (6) sent from other jurisdictions of the of this chapter is suspended on all post United States or from other nations routes for documents, sent by a shipper into the 48 contiguous states are or an ocean carrier from a foreign ori- deemed ‘‘dispatched’’ when they are in gin to a United States ocean-carrier the custody of the domestic carrier, port city destination or from a United having been passed by United States States ocean-carrier port city origin to Customs, if applicable, at the letters’ a foreign destination, that would be ex- point of arrival in the 48 contiguous cepted under § 310.3(a) if the documents states. accompanied the cargo. This suspen- (3) Except as provided in this para- sion covers only shipments to or from graph (b)(3), the times and time limits ports where the cargo to which the doc- specified in paragraph (b)(1) of this sec- uments relate is actually loaded on, or tion are not applicable to any locations unloaded from, an ocean vessel. For outside the 48 contiguous states. The purposes of this suspension ‘‘foreign times and time limits specified in para- origins’’ or ‘‘foreign destinations’’ graph (b)(1) of this section are applica- means origins or destinations outside ble to letters dispatched and delivered the contiguous 48 states. wholly within Alaska, Hawaii, Puerto [44 FR 52835, Sept. 11, 1979] Rico or a territory or possession of the United States. The regulations pro- § 320.6 Suspension for extremely ur- vided in paragraph (b)(2) of this section gent letters. relating to the delivery and dispatch of (a) The operation of 39 U.S.C. 601(a) letters are applicable by analogy to (1) through (6) and § 310.2(b) (1) through letters shipped between these jurisdic- (6) of this chapter is suspended on all tions and other nations. post routes for extremely urgent let- (c) It will be conclusively presumed ters if the conditions of either para- that a letter is extremely urgent and is graph (b) or (c) of this section, and of covered by the suspension if the the other paragraphs of this section, amount paid for private carriage of the are met. letter is at least three dollars or twice (b)(1) For letters dispatched within 50 the applicable U.S. postage for First- miles of the intended destination, de- Class Mail (including priority mail) livery of those dispatched by noon whichever is the greater. If a single must be completed within 6 hours or by shipment consists of a number of let- the close of the addressee’s normal ters that are picked up together at a business hours that day, whichever is single origin and delivered together to later, and delivery of those dispatched a single destination, the applicable after noon and before midnight must be U.S. postage may be computed for pur- completed by 10 A.M. of the addressee’s poses of this paragraph as though the next business day. For other letters, shipment constituted a single letter of delivery must be completed within 12 the weight of the shipment. If not actu- hours or by noon of the addressee’s ally charged on a letter-by-letter or next business day. The suspension is shipment-by-shipment basis, the available only if the value or useful- amount paid may be computed for pur- ness of the letter would be lost or poses of this paragraph on the basis of greatly diminished if it is not delivered the carrier’s actual charge divided by a within these time limits. For any part bona fide estimate of the average num- of a shipment of letters to qualify ber of letters or shipments during the under this paragraph (b), each of the period covered by the carrier’s actual letters must be extremely urgent. charge.

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(d) The sender must prominently istrative proceedings for collection of mark the outside covers or containers postage (see § 310.5) or by civil or crimi- of letters carried under this suspension nal proceedings. with the words ‘‘Extremely Urgent’’ or (f) The following examples illustrate ‘‘Private Carriage Authorized by Post- the application of this suspension. al Regulations (39 CFR 320.6)’’ or with a Example (1). The headquarters of a city po- similar legend identifying the letters lice department each night compiles a list of as carried pursuant to this suspension. the license plate numbers and descriptions of In addition, each outside container or automobiles reported stolen within the met- cover must show the name and address ropolitan area during the previous 24 hours. of the carrier, and the name and ad- This list is delivered by 7 a.m. the following dress of the addressee. Carrier records day to each of the local precinct offices lo- must be sufficient to show that the de- cated throughout the city. By 9 a.m. that livery of the letters was completed day, the list is circulated for use by law enforcement units operating from each office. within the applicable time limitations, Effective police recovery of stolen vehicles if carried under the authority of para- depends upon having this information hand- graph (b) of this section, and must be ed out in written form to all units on at least made available for inspection at the re- a daily basis. The private carriage of these quest of the Postal Service. The re- lists would qualify under the test set in para- quired records may be either in the graph (b) of this section. form of notations on the containers or Example (2). The same police department covers of any letters asserted to be car- headquarters also from time to time distributes memoranda advising the local precinct ried under this suspension, or in the officers on departmental policy and vacation form of records kept by employees of schedules, and responding to inquiries from the actual times they pick up and de- the local precinct offices. Nothing substan- liver such materials. tial turns on whether these memoranda ar- (e) Violation by a shipper or carrier rive by midnight or by 10 a.m. of the next of the terms of this suspension is business day or whether their transmission grounds for administrative revocation takes a day or more longer to complete. The of the suspension as to such shipper or private carriage of these memoranda would not qualify under the test set out in para- carrier for a period of one year in a graph (b) of this section. proceeding instituted by the General Example (3). A health maintenance organi- Counsel, following a hearing by the Ju- zation (HMO) operating its own hospital, dicial Officer Department in accord- clinics, and medical laboratory daily sends ance with the rules of procedure set test samples and specimens from the HMO’s out in Part 959 of this chapter. The pe- hospital and clinics to its medical laboratory riod of the revocation may be reduced in a different location for immediate anal- or be extended for not to exceed one ad- ysis. In return, the HMO laboratory sends to ditional year by the Judicial Officer, the HMO’s hospital and clinics the laboratory reports for these samples and specimens depending on such mitigating or aggra- on the day the reports are completed. The re- vating factors as the extent of the ports are then promptly utilized by the hos- postal revenue lost because of the vio- pital and clinics as part of regular diagnostic lation and the presence or absence of procedures. The private carriage of these re- good faith error or of previous viola- ports would qualify under the loss-of-value tions. The failure of a shipper or car- test set out in paragraph (b) of this section. rier to cooperate with an authorized in- Example (4). The same HMO’s hospital and spection or audit conducted by the clinics send requisitions and invoices to the HMO’s central office as the need arises for Postal Inspection Service for the pur- the ordering of and payment for goods and pose of determining compliance with services, which are handled centrally. Every the terms of this suspension shall be other Friday, the central office sends to the deemed to create a presumption of a hospital and clinics reports and memoranda violation for the purpose of this para- on expenditures for personnel, supplies, utili- graph (e) and shall shift to the shipper ties, and other goods and services. Nothing or carrier the burden of establishing substantial turns on whether these materials the fact of compliance. Revocation of arrive the same day or by 10 a.m. of the next business day or whether their transmission this suspension as to a shipper or car- takes a day or more longer to complete. The rier shall in no way limit other actions private carriage of these materials would not as to such shipper or carrier to enforce qualify under the test set out in paragraph the Private Express Statutes by admin- (b) of this section.

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Example (5). On Sunday, Tuesday, and rials would not qualify under the test set out Thursday evenings, the central office of a re- in paragraph (b) of this section. gional grocery store chain sends out to its Example (9). An organization of real estate various stores in the area inventory bul- brokers in a community issues periodic bulletins prepared over the previous 24 hours letins containing information about prop- showing the current availability and prices erties which have been listed for sale by the of meat, produce, dairy products, constituent brokers. Each broker is entitled breadstuffs, frozen foods and similar items. to show the properties to prospective buyers. Early the following afternoon, each store In order to provide each broker with sub- must send these inventory bulletins back to stantially equal opportunity to secure a the central office with a notation of the buyer, it is necessary that the bulletins be store’s orders to assure that the central of- delivered on the same day and within the fice can ship sufficient supplies of such items shortest time span within that day. The bul- for sale by the store on its next business day. letins constitute the basic source of informa- The private carriage of these bulletins would tion for the brokers and delivery in the fore- qualify under the test set out in paragraph going manner is a key element in the func- (b) of this section. tioning of the brokers. The private carriage Example (6). On Sunday, Tuesday, and of the bulletins would therefore qualify Thursday evenings, the central office of a under the test set out in paragraph (b) of this different regional grocery chain sends out to section. its various stores in the area inventory bul- Example (10). The same organization dis- letins showing the current availability and tributes memoranda regarding speakers at prices of meat, produce, dairy products, real estate seminars, sales figures for a given breadstuffs, frozen foods and similar items. period, and other information of significance Early in the afternoon of the second day fol- and interest to real estate brokers but which lowing receipt of the bulletins, each store does not affect their competitive positions. A sends the bulletins back to the central office failure to make simultaneous or near simul- so that supplies of such items may be taneous delivery to the brokers, or a failure shipped to the store four days later. Nothing to make delivery within a specified period of substantial turns on whether these bulletins time, has no material bearing upon the day- arrive within 12 hours or by noon of the next to-day operations of the brokers and private business day or whether their transmission carriage of these materials would not qualify takes a day or more longer to complete. The under the test set out in paragraph (b) of this private carriage of these materials would not section. qualify under the test set out in paragraph (b) of this section. [44 FR 61181, Oct. 24, 1979] Example (7). The headquarters office of a large bank each business day prepares and § 320.7 Suspension for advertisements sends to its branch offices lists showing cur- accompanying parcels or periodi- rent foreign exchange rates and similar in- cals. formation that must be updated and distrib- (a) The operation of 39 U.S.C. 601(a) uted to the branches on a daily basis in order (1) through (6) and § 310.2(b) (1) through for the bank to avoid the risk of serious fi- (6) of this chapter is suspended on all nancial loss. Within three hours of their receipt by each branch office, these lists are post routes for advertisements enclosed circulated and utilized by officials of the with merchandise in parcels or accom- branch office in conducting regular banking panying periodicals under the following procedures involving the use of such lists. circumstances: The private carriage of these lists would (1) The advertisements must not be qualify under the test set out in paragraph marked with the names or addresses of (b) of this section. the intended recipients. Example (8). The field office of an insurance (2) The advertisements must be inci- company daily sends the insurance applications it has taken in that day to the com- dental to the shipment of the merchan- pany’s central office. The applications are dise or the periodical. bound (i.e., constitute evidence of insurance) (i) An advertisement is incidental to for 30 days, but may be canceled by the com- the shipment of the accompanying pany. Few if any policies have been canceled merchandise or the periodical when the by the company within 48 hours of their re- merchandise or the periodical has been ceipt at the central office, though the com- ordered by or would otherwise be sent pany normally begins processing the applica- to the recipient even without the actions soon after their receipt. Nothing sub- companying advertisement. stantial turns on whether these bound applications arrive within 12 hours or by noon of (ii) Notwithstanding § 320.7(a)(2)(i), an the next business day or whether their trans- advertisement is not incidental to the mission takes a day or more longer to com- merchandise when the pertinent cir- plete. The private carriage of these mate- cumstances, such as the nominal value

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of the merchandise, its shipment on an Example (1). A number of promotional let- unsolicited basis, or its status as a ters originated by firm F in Los Angeles are sample, reasonably indicate that the carried by Carrier G to Europe for deposit in shipper’s primary purpose is the con- the mails of a foreign country. Some of the veyance of the advertisement itself and letters are addressed to persons in Europe, some to persons in the United States. The that the merchandise is merely an ad- suspension for international remailing does junct to the advertisement. not apply to the letters addressed to persons (b) An item is an advertisement if its in the United States. primary purpose is to cause or induce the purchase of goods or services from (c) Violation by a shipper or carrier the shipper or others. of the terms of this suspension is grounds for administrative revocation [45 FR 59874, Sept. 11, 1980] of the suspension as to such shipper or carrier for a period of one year in a § 320.8 Suspension for international proceeding instituted by the General remailing. Counsel in accordance with part 959 of (a) The operation of 39 U.S.C. 601(a)(1) this chapter. The failure of a shipper or through (6) and § 310.2(b)(1) through (6) carrier to cooperate with an inspection of this chapter is suspended on all post or audit authorized and conducted by routes to permit the uninterrupted car- the Postal Inspection Service for the riage of letters from a point within the purpose of determining compliance United States to a foreign country for with the terms of this suspension shall deposit in its domestic or international be deemed to create a presumption of a mails for delivery to an ultimate des- violation for the purpose of this para- tination outside the United States. graph (c) and shall shift to the shipper Example (1). The letters to overseas cus- or carrier the burden of establishing tomers of commercial firm A in Chicago are the fact of compliance. Revocation of carried by Carrier B to New York where they this suspension as to a shipper or car- are delivered to Carrier C for carriage to Eu- rier shall in no way limit other actions rope. Carrier C holds the letters in its dis- as to such shipper or carrier to enforce tribution center overnight, then sorts them the Private Express Statutes by admin- by country of destination and merges them istrative proceedings for collection of with letters of other firms to those countries before starting the carriage to Europe in the postage (see § 310.5) or by civil or crimi- morning. The carriage of firm A’s letters is nal proceedings. not interrupted. The suspension for inter- [51 FR 29638, Aug. 20, 1986] national remailing applies to the carriage by Carrier B and by Carrier C. Example (2). The bills addressed to foreign § 320.9 Revocation or amendment of customers of the Chicago branch office of suspensions. commercial firm D are carried by Carrier E These suspensions may be revoked or to New York where they are delivered to the amended in accordance with § 310.7. No accounting department of firm D’s home of- revocation of the suspension provided fice. The accounting department uses the in- in § 320.2 will curtail operations of par- formation in the bills to prepare its reports of accounts receivable. The bills are then re- ticular carriers existing at the time of turned to Carrier E which carries them di- the revocation to a level of operations rectly to Europe where they are entered into (in dollar or volume terms, whichever the mails of a foreign country. The carriage is larger) lower than that antedating of the bills from Chicago to Europe is inter- the revocation in a particular market rupted in New York by the delivery to firm served prior to the revocation. Should D’s home office. The suspension for international remailing does not apply to the car- the suspension referred to in § 320.2 be riage from Chicago to New York. It does revoked, carriers, as a condition to apply to the subsequent carriage from New continuing operations under this sec- York to Europe. tion, will be required to provide reasonably complete and accurate data to (b) This suspension shall not permit support estimates of past operating the shipment or carriage of a letter or levels in particular markets. letters out of the mails to any foreign country for subsequent delivery to an [44 FR 52835, Sept. 11, 1979. Redesignated at address within the United States. 44 FR 61181, Oct. 24, 1979]

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PART 447—RULES OF CONDUCT ployees are referred to the Standards of FOR POSTAL EMPLOYEES Ethical Conduct for Employees of the Executive Branch, 5 CFR part 2635, and Subpart A—Applicability and Definitions Postal Service regulations supplemental thereto, 5 CFR part 7001. Sec. 447.11 Applicability. § 447.12 Definitions. 447.12 Definitions. The following definitions apply for Subpart B—Employee Conduct purposes of this part. (a) Postal Service. The United States 447.21 Prohibited conduct. Postal Service as established by 39 Subpart C—Ethical Conduct Advisory U.S.C. 201. Services and Post-Employment Activities (b) Employee. An individual appointed to a position, temporary or permanent, 447.31 Advisory service. within the Postal Service, or hired as 447.32 Post-employment activities. an executive under an employment Subpart D—Political Activities contract, including a substitute or a special employee as defined by 18 447.41 General. U.S.C. 202(a). The term ‘‘employee’’ 447.42 Additional prohibited political activi- does not include the Governors of the ties. Postal Service. 447.43 Investigation and enforcement. Subpart E—Participation in Community Subpart B—Employee Conduct Affairs § 447.21 Prohibited conduct. 447.51 General. 447.52 Holding of State or local office by (a) An employee must not engage, ei- Postal Service employees. ther on a paid or unpaid basis, in teaching, lecturing, or writing for the Subpart F—Bribery, Undue Influence, or purpose of the special preparation of a Coercion person or class of persons for an exam- 447.61 General. ination of the Office of Personnel Man- agement or Board of Examiners for the AUTHORITY: 39 U.S.C. 401. Foreign Service, or for appointment in SOURCE: 39 FR 1990, Jan. 16, 1974, unless the U.S. Postal Service, when these ac- otherwise noted. tivities are dependent on information obtained as a result of his or her em- Subpart A—Applicability and ployment with the Postal Service, ex- Definitions cept when that information has been made available to the general public, SOURCE: 60 FR 47243, Sept. 11, 1995, unless or will be made available on request, or otherwise noted. when the Postmaster General gives written authorization that the use of § 447.11 Applicability. nonpublic information is in the public This part contains rules of conduct interest. for the employees of the Postal Serv- (b) No employee shall take sick leave ice. Employees are required to comply to enable himself to engage in outside with the regulations in this part, and work. violations of the regulations may be (c) No employee while acting in his cause for disciplinary action. The regu- official capacity shall directly or indi- lations in this part are in addition to rectly authorize, permit, or participate other rules of conduct provided by ap- in any action, event or course of con- plicable statutes, regulations, or Post- duct which subjects any person to dis- al Service handbooks and manuals. For crimination, or results in any person applicable rules of ethical conduct, em- being discriminated against, on the

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basis of race, color, religion, sex, na- Subpart C—Ethical Conduct Advi- tional origin, or age. sory Services and Post-Em- (d) No employee shall engage in ployment Activities criminal, dishonest, notoriously dis- graceful or immoral conduct, or other § 447.31 Advisory service. conduct prejudicial to the Postal Serv- (a) The Ethical Conduct Officer is re- ice. Conviction of a violation of any sponsible for the administration of the criminal statute may be grounds for ethics program of the Postal Service. disciplinary action by the Postal Serv- In the exercise of that responsibility, ice in addition to any other penalty the Ethical Conduct Officer shall co- imposed by or pursuant to statute. ordinate the advisory service provided (e) No employee shall habitually use by this section, assure that authori- intoxicating beverages to excess. No tative interpretations of the Standards employee shall drink beer, wine, or of Ethical Conduct for Employees of other intoxicating beverages while on the Executive Branch (Standards) and duty. No employee shall begin work or Supplemental Postal Service Regula- return to duty while intoxicated. No tions (Supplemental Regulations) are available to the Associate Ethical Con- employee shall drink intoxicating bev- duct Officers, and render final rulings erages in a public place while in union behalf of the Postal Service in ap- form. Unless the Postmaster General peals by employees from rulings under specifically authorizes an exception (as the Standards and Supplemental Regu- in the case, for example, of an official lations made by an agency designee. reception) no employee shall have or The Ethical Conduct Officer shall pro- bring any container of beer, wine, or vide advice and guidance for the Post- other intoxicating beverage on prem- master General and all Associate Eth- ises occupied by a postal facility, ical Conduct Officers concerning ques- whether or not the container has been tions arising under the Standards and opened. Supplemental Regulations. The Ethical (f) Illegal use of drugs may be Conduct Officer may delegate to an As- grounds for removal from the Postal sistant Ethical Conduct Officer author- Service. ity to perform any duty or function (g) No employee while on property vested in him or her by this Section. owned or leased by the Postal Service The General Counsel is the Ethical Conduct Officer of the Postal Service or the United States or while on duty, and the Designated Agency Ethics Offi- shall participate in any gambling ac- cial for purposes of the Ethics in Gov- tivity, including the operation of a ernment Act, as amended, and imple- gambling device, in conducting or act- menting regulations of the Office of ing as an agent for a lottery or pool, in Government Ethics, including 5 CFR conducting a game for money or prop- part 2638. erty, or in selling or purchasing a num- (b) The Deputy Postmaster General bers slip or ticket. is the Associate Ethical Conduct Offi- NOTE: Paragraph (g) of this section does cer for the Office of the Postmaster not prohibit participation in activities speci- General and the Office of the Deputy fied herein if participation is necessitated by Postmaster General. The Chief Oper- an employee’s law enforcement duties, or if ating Officer, Senior Vice Presidents, participation is in accordance with section 7 Vice Presidents, and such other per- of Executive Order No. 12353, of March 23, sons as the Ethical Conduct Officer 1982, relating to agency-approved solicita- may designate are Associate Ethical tions. Conduct Officers for their respective [39 FR 1990, Jan. 16, 1974; 39 FR 3677, Jan. 28, organizational elements. Each Asso- 1974, as amended at 48 FR 48231, Oct. 18, 1983. ciate Ethical Conduct Officer shall des- Redesignated and amended at 60 FR 47244, ignate a suitable employee to coordi- Sept. 11, 1995; 72 FR 49195, Aug. 28, 2007] nate the ethics program within his or her organization and to act as liaison with the Ethical Conduct Officer. Each Associate may designate other suitable employees to assist or act for him or

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her and shall ensure that there is an the restrictions imposed under 18 adequate number of Qualified Ethics U.S.C. 207 in effect prior to that date, Trainers to comply with the require- while all other employees are subject ments of the annual ethics training to the restrictions imposed under 18 program. U.S.C. 207 as amended. (c) The Ethical Conduct Officer and, (b) The Office of Government Ethics with his or her approval, Associate has issued regulations, contained in 5 Ethical Conduct Officers, may delegate CFR part 2637, that implement 18 to additional persons or classes of per- U.S.C. 207 as in effect prior to January sons the authority to make determina- 1, 1991. Employees who terminated tions, to give approval, or to take their employment with the Postal other action in accordance with the Service prior to January 1, 1991, may Standards of Ethical Conduct, as is refer to 5 CFR part 2637 for guidance contemplated by 5 CFR 2635.102(b), de- concerning applicable post-employ- fining ‘‘agency designee.’’ ment restrictions, and further guidance (d) An employee may obtain advice may be obtained in accordance with and guidance on questions of conflicts § 447.31 of this part. of interest from the Ethical Conduct Officer or the Associate Ethical Con- (c) Employees who terminate their duct Officer having appropriate juris- postal employment on or after January diction. In order to avoid undue inter- 1, 1991, are subject to 18 U.S.C. 207 as ference with established grievance and amended. Guidance concerning post- disciplinary procedures, advisory serv- employment restrictions applicable to ice under this subpart will not nor- such employees may be obtained in ac- mally be available in an instance in cordance with § 447.31 of this part. which a grievance is pending or dis- [60 FR 47244, Sept. 11, 1995] ciplinary action has been initiated. (e) An employee may request any ruling provided for by the Standards and Subpart D—Political Activities Supplemental Regulations by submit- § 447.41 General. ting a request in writing to the Senior Counsel, Ethics, or, in the field, to the (a) Postal Service employees, except Chief Field Counsel or Deputy Chief those mentioned in paragraph (b) of Field Counsel, General Law. this section, are subject, at all times to (f) An employee may appeal to the restrictions on their participation in Ethical Conduct Officer from a ruling political activity (5 U.S.C. subchapter made by an agency designee concerning III of chapter 73, and 18 U.S.C. 602, 603, matters covered by the Standards and and 607), and to the regulations issued Supplemental Regulations within 30 by the Office of Personnel Management days from the date of the ruling. The relating thereto. appeal must be in writing and must (b) Those Postal Service employees contain a full statement of the rel- who are employed on an irregular or evant facts. It should be addressed to occasional basis; e.g., experts and con- the Ethical Conduct Officer, U.S. Post- sultants, substitute rural carriers, oth- al Service, Washington, DC 20260, and a ers on a per diem basis, and without copy thereof should be sent to the offi- compensation or when actually em- cial whose ruling is being appealed. ployed employees, are subject to the [60 FR 47244, Sept. 11, 1995] restrictions mentioned in paragraph (a) of this section only while in an active § 447.32 Post-employment activities. duty status and only for the entire 24 (a) Restrictions on the post-employ- hours of any day of actual employment activities of persons who have ment. Notwithstanding this paragraph, been employed by the Postal Service full-time employees in a leave status are imposed by 18 U.S.C. 207. The Eth- and part-time employees are fully sub- ics Reform Act of 1989 includes amend- ject to the restrictions of paragraph (a) ments to 18 U.S.C. 207, which became of this section. effective January 1, 1991. Employees [39 FR 1990, Jan. 16, 1974, as amended at 48 who terminated their employment FR 48231, Oct. 18, 1983. Redesignated at 60 FR prior to January 1, 1991, are subject to 47245, Sept. 11, 1995]

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§ 447.42 Additional prohibited political § 447.52 Holding of State or local office activities. by Postal Service employees. (a) In addition to the restrictions on (a) An employee may seek, accept, or political activities mentioned in hold a nonpartisan State or local office § 447.51, an employee may not: subject to the provisions of this Code (1) Display a political picture or and in particular this section. A ‘‘non- sticker on property owned or leased by partisan’’ office is one filled by a the Postal Service. He is not forbidden ‘‘nonpartisan election’’, which is an by this paragraph, however, from dis- election at which none of the can- playing a picture, including a person- didates are to be nominated or elected ally autographed picture of a political as representing a political party any of figure in his office or place of work if it whose candidates for presidential elec- tor received votes in the last preceding has no language in the nature of polit- election at which presidential electors ical campaigning; were selected. (2) Wear a political badge or button (b) An employee who wishes to seek, while in uniform or while on duty when accept, or hold a nonpartisan State or that duty requires him to deal with the local office is responsible for public or be in the view of the public; ascertaining: (3) Display a political picture or (1) Whether the office is ‘‘non- sticker on his private vehicle while partisan’’ within the definition in that vehicle is being used for official § 447.62(a). postal purposes. (2) Whether State or local law per- [39 FR 1990, Jan. 16, 1974. Redesignated at 60 mits a Postal Service employee to FR 47245, Sept. 11, 1995] seek, accept, or hold the particular office. § 447.43 Investigation and enforce- (3) Whether the duties of the office ment. would result in a conflict with his The Office of the Special Counsel and Postal Service employment. the Merit Systems Protection Board (4) Whether the discharge of the du- investigate and adjudicate allegations ties of the office would interfere with of political activity in violation of the the performance by the particular em- regulations of the Office of Personnel ployee of his Postal Service duties in Management by Postal Service em- an acceptable manner or would interfere with the performance by other ployees. For jurisdiction in such a case, Postal Service employees of their re- see 5 CFR 734.102 and part 1201. spective duties in an acceptable man- [60 FR 47245, Sept. 11, 1995] ner. (c) An employee is encouraged to Subpart E—Participation in seek advice from his Associate Ethical Community Affairs Conduct Counselor prior to taking any action to seek, accept, or hold a State § 447.51 General. or local office. If, after the employee has entered upon the discharge of the An employee is permitted to partici- duties of this non-postal office, his pate in community affairs to the ex- non-postal duties interfere with the tent consistent with the proper per- proper discharge of postal duties, ei- formance of his postal duties and with ther by him or by other postal employ- applicable laws and regulations. Noth- ees, the employee holding the non-posting in this section shall prevent an em- al office shall be advised by his supe- ployee from serving as an official of a rior to eliminate the interference, ei- religious or fraternal organization or of ther by resignation from the non-post- a civil nonpolitical organization which al office, or in such other manner as is is supported by dues or contributions appropriate under the circumstances. If from its own members. the employee fails, refuses, or neglects to comply with the foregoing advice [39 FR 1990, Jan. 16, 1974. Redesignated at 60 and the interference continues, he will FR 47245, Sept. 11, 1995] be subject to disciplinary proceedings.

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(d) Employees, other than post- 20260. The report shall be sent in a masters or acting postmasters in a sal- sealed envelope clearly marked ‘‘Lim- ary level of EAS–25 or higher, may be ited Official Use—To Be Opened by Ad- granted permission to campaign for a dressee Only’’. full-time State or local nonpartisan of- [39 FR 1990, Jan. 16, 1974. Redesignated at 60 fice while on annual leave or on au- FR 47245, Sept. 11, 1995] thorized leave without pay during the campaign when: (1) The criteria in paragraphs (b) (1) PART 491—GARNISHMENT OF SAL- and (2) of this section are met, and ARIES OF EMPLOYEES OF THE (2) The Vice President, Area Oper- POSTAL SERVICE AND THE POST- ations, determines that the employee’s AL RATE COMMISSION postal responsibilities are being conducted in a satisfactory manner and Sec. that the absence of the employee dur- 491.1 Authorized Agent to receive service. ing the campaign period will not dis- 491.2 Manner of service. 491.3 Sufficient legal form. rupt the operation of the facility where 491.4 Identification of employees. he or she is employed. 491.5 Costs. 491.6 Response to process. NOTE: Requests shall be submitted through 491.7 Release of information. the postmaster or other installation head to 491.8 Execution of process. the Vice President, Area Operations. If the 491.9 Restrictions on garnishment. employee is elected to and takes such a full- time office, he or she may either be sepa- AUTHORITY: 5 U.S.C. 5520a; 39 U.S.C. 401; rated from the Postal Service or granted E.O.12897, 59 FR 5517, 3 CFR, 1994 Comp., p. leave without pay. 858. (e) A postmaster or acting post- SOURCE: 63 FR 67403, Dec. 7, 1998, unless master in salary level EAS–25 or higher otherwise noted. shall not be authorized to take annual leave or leave without pay for the pur- § 491.1 Authorized Agent to receive service. pose of campaigning for a full-time State or local nonpartisan office. Notwithstanding the designation, in § 2.2 of this chapter, of the General [39 FR 1990, Jan. 16, 1974, as amended at 48 Counsel as agent for the receipt of FR 48231, Oct. 18, 1983. Redesignated and legal process against the Postal Serv- amended at 60 FR 47245, Sept. 11, 1995] ice, the sole agent for service of garnishment process directed to the pay of Subpart F—Bribery, Undue Postal Service employees and employ- Influence, or Coercion ees of the Postal Rate Commission (‘‘employees’’) is the Manager, Payroll § 447.61 General. Processing Branch, 2825 Lone Oak (a) An employee shall report imme- Parkway, Eagan, MN 55121–9650 (‘‘Au- diately to the General Counsel, U.S. thorized Agent’’). The Authorized Postal Service, Washington, DC 20260: Agent shall have sole authority to re- (1) Any instance in which a person ei- ceive service of legal process in the na- ther within or outside the Postal Serv- ture of garnishment (hereinafter some- ice uses or attempts to use a bribe, times referred to as ‘‘process’’) arising undue influence, or coercion to induce under the law of any state, territory, or attempt to induce the employee to or possession, or the order of a court of act or neglect to act in regard to his of- competent jurisdiction of any state, ficial responsibilities; and territory, or possession (including any (2) Any information that causes him order for child support and alimony or to believe that there has been a viola- bankruptcy). The Authorized Agent tion of a Federal criminal statute or may not receive or transmit service of any law or regulation directly or indi- process in a private legal matter on be- rectly related to the responsibilities of half of an employee. No process shall the Postal Service. A copy of a report be effectively served until it is received made under this paragraph shall also by the Authorized Agent or his des- be sent by the employee to the Chief ignee. No other employee shall have Postal Inspector, Washington, DC the authority to accept service of such

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process. Service of process in con- ment; that it is issued by a court of formity with Rule 4(i) of the Federal competent jurisdiction or an author- Rules of Civil Procedure (28 U.S.C. Ap- ized official pursuant to an order of pendix) is not waived for any suit or such a court or pursuant to federal, action wherein the Postal Service, its state or local law, evidenced by a sig- officers, or employees are parties. Any nature of the issuing person; and that Order, issued in bankruptcy, for the it contains the name of the garnished withholding of sums from pay due an party, with his or her social security employee and which is directed to the number, orders the employing agency Postal Service for handling outside the to withhold from pay a specific amount voluntary allotment procedure, is legal of money, specifically describes the process subject to the provisions of judgment of debt or administrative ac- these regulations. tion complete with statutory citation and contains specific advice as to § 491.2 Manner of service. where to send the funds as they are pe- Service of process on the Authorized riodically withheld including the com- Agent or his designee may be made in plete Zip Code (Zip + 4). When there is person or by certified or registered a suggestion that the employee is mail, with return receipt requested, at under the jurisdiction of a bankruptcy the address of the Authorized Agent. proceeding, the creditor must provide Service may also be made on the Au- documentary evidence to prove that thorized Agent by means of any private his legal process is not in violation of delivery service pursuant to its author- the bankruptcy court’s jurisdiction be- ity for the private carriage of letters fore the creditor’s garnishment may be under an exception to the Private Ex- processed. Documents deficient in any press Statutes, 39 U.S.C. 601–606, proof these respects may be returned to vided that the private delivery organi- the issuing court or authorized official zation issues a receipt bearing the inscribed ‘‘Insufficient as to legal name and address of both the addressee form.’’ and sender, as well as the date of delivery and the signature of the receiving § 491.4 Identification of employees. agent. No garnishment is effectively Garnishments must be accompanied served until it is received by the Au- by sufficient information to permit thorized Agent or his designee regard- prompt identification of the employee less of the chosen mode of delivery. and the payments involved. Garnish- Process addressed to, delivered to, or in ment of an employee whose name and any manner given to any employee, social security number is similar to other than the Authorized Agent or his but not identical with the name and so- designee, may, at the sole discretion of cial security number on the garnish- the employee, be returned to the ment will not be processed. An exact issuing court marked ‘‘Not Effectively match of both name and social security Served.’’ A copy of or reference to number is required in order to permit these regulations may be included. Em- processing; otherwise, the garnishment ployees are not authorized to redirect will be returned marked ‘‘Insufficient or forward garnishment process to the identifying information.’’ Garnish- Authorized Agent. In the event that ments which are insufficient in regard the address of the Authorized Agent is to identifying information will not be changed, mail may be forwarded from held pending receipt of further infor- his last published address to his new of- mation and must be served again when ficial address until such time as these the proper information is obtained. regulations are amended to reflect the new address. § 491.5 Costs. The Postal Service’s administrative § 491.3 Sufficient legal form. costs in executing the garnishment ac- No document purporting to garnish tion shall be added to each garnish- employee wages shall be deemed suffi- ment and the costs recovered shall be cient unless it can be determined from retained as offsetting collections. The the face of the document that it is Postal Service reserves the right to re- legal process in the nature of garnish- determine the administrative cost of

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any garnishment if, in administering defective with respect to service, lack of any garnishment, extra costs beyond legal sufficiency, failure to properly identify those normally encountered are in- the employee, or other reason, do not require curred, and add the extra cost to each a response or an answer but if the Postal Service chooses to act in any way, such as to garnishment. The extra costs recovered return the document, that act shall be a suf- shall be retained as offsetting collec- ficient answer. tions. § 491.7 Release of information. § 491.6 Response to process. (a) No employee whose duties include (a) Within fifteen days after receipt responding to interrogatories to gar- of process that is sufficient for legal nishments shall release information in form and contains sufficient informa- response to a garnishment until it is tion to identify the employee, the Au- determined that sufficient informa- thorized Agent shall send written no- tion, as required in § 491.4, has been re- tice that garnishment process has been ceived in writing as part of the gar- served, together with a copy thereof, to nishment legal process. The Authorized the affected employee at his or her Agent may, at his or her sole discre- duty station or last known address. tion, accept or initiate telephone or The Authorized Agent shall respond, in telefax inquiries concerning garnish- writing, to the garnishment or inter- ments. No other employee may release rogatories within thirty days of receipt any information about employees ex- of process. The Authorized Agent may cept in conformity with the Privacy respond within a longer period of time Act of 1974, 5 U.S.C. 552a, and the regu- as may be prescribed by applicable lations in 39 CFR Part 266, ‘‘Privacy of state Law. Neither the Authorized Information.’’ Agent nor any employee shall be re- (b) The Authorized Agent’s response quired to respond in person to any gar- to legal process is sufficient if it con- nishment served according to the pro- tains only that information not other- visions of 5 U.S.C. 5520a and the regula- wise protected from release by any fed- tions in this section. A sufficient re- eral statute including the Privacy Act. sponse to legal process shall consist of Neither the Postal Service nor the any action of the Postal Service con- Postal Rate Commission shall be re- sistent with these regulations. The acquired to provide formal answers to in- tion shall be considered to be given terrogatories received prior to the re- under penalty of perjury and shall con- ceipt of legal process. Employment stitute a legally sufficient answer to verification may be obtained by access- any garnishment. The Postal Service ing the Postal Service’s employment may, in its sole discretion, answer or verification system by dialing 1–(800) otherwise respond to documents pur- 276–9850. porting to be legal process which are insufficient as to the manner of serv- § 491.8 Execution of process. ice, insufficient as to the identification (a) All legal process in the nature of of the employee, insufficient as to legal garnishment shall be date and time form or insufficient for any other rea- stamped by the Authorized Agent when son. received for the purpose of determining (b) The requirements of paragraph (a) the order of receipt of process which is of this section are illustrated by the sufficient as to legal form and contains following example: sufficient information for identifica- Example: Each periodic check with the action of the employee, the Authorized companying Financial Institution State- Agent’s date and time stamp shall be ment shall be considered to be a legally suf- conclusive evidence. Child support and ficient answer. Where legal process has been alimony garnishments will be accorded processed but no money was deducted, (for priority over commercial garnishments the reason of insufficient pay, prior garnish- under 5 U.S.C. 5520a as provided in 5 ment in force, etc.) the mailing label or U.S.C. 5520a(h)(2). Garnishments shall other written response shall be a sufficient answer. Where the Postal Service sends a be executed provided that the pay cycle check or mailing label, no further action will is open for input or, if closed, will be be required (such as a cumulative report or held until the next cycle. In no event notarized statement.) Documents which are shall the Postal Service be required to

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vary its normal pay or disbursement (d) The Postal Service, the Postal cycles in order to comply with legal Rate Commission, any disbursing offi- process of any kind. Garnishments cer or any other employee shall not be shall be recalculated, if required, to fit liable to pay money damages for fail- within the normal postal pay cycles. ure to comply with legal process. The Postal Service shall not be required to withhold pay and hold the § 491.9 Restrictions on garnishment. funds in escrow. The Postal Service, in Garnishments under this section its sole discretion, may process more shall be subject to the restrictions in 15 than one garnishment at a time within U.S.C. 1671–1677, including limits on the the restrictions on garnishments in Section 491.9 of these regulations. The amounts which can be withheld from Postal Service may, in its sole discre- an employee’s pay and the priority of tion, accept and hold for processing garnishments. garnishments received after the garnishment currently in force. PART 492—ADMINISTRATIVE WAGE (b) The Postal Service will only ac- GARNISHMENT FROM NON- cept and effectuate legal process for a POSTAL SOURCES person who is currently employed. Upon cessation of employment, process relating to that individual will be ter- AUTHORITY: 31 U.S.C. 3720D; 39 U.S.C. 204, minated and not retained. The Postal 401, 2601; 31 CFR 285.11. Service shall not be required to estab- SOURCE: 79 FR 46183, Aug. 7, 2014, unless lish an escrow account to comply with otherwise noted. legal process even if the applicable law of the jurisdiction requires private em- § 492.1 Collection of delinquent non- ployers to do so. Legal process must tax debts by administrative wage state on its face that the Postal Serv- garnishment. ice withhold up to a specific total (a) This section provides procedures amount of money, the Postal Service for the Postal Service to collect money will not calculate interest, charges, or from a debtor’s disposable pay by any variable in processing a garnish- means of administrative wage garnishment. The Postal Service may continue ment, in accordance with 31 U.S.C. processing a garnishment if the gar- 3720D and 31 CFR 285.11, to satisfy de- nishing attorney provides the adjusted linquent nontax debt owed to the total including the additional money United States. owed, as determined from his calculation of the variable amounts. The at- (b) The Postal Service authorizes the torney is deemed to certify on his pro- U. S. Department of the Treasury Bu- fessional responsibility that the cal- reau of the Fiscal Service or its suc- culations are correct and will indem- cessor entity to collect debts by admin- nify the employee directly for any er- istrative wage garnishment, and con- rors. All garnishments of periodic pay duct administrative wage garnishment may be effectuated in accordance with hearings, on behalf of the Postal Serv- the bi-weekly pay schedule. The Postal ice in accordance with the require- Service need not vary its pay and dis- ments of 31 U.S.C. 3720D and the proce- bursement cycles to accommodate dures contained in 31 CFR 285.11. withholding on any other cycle. (c) The Postal Service adopts the pro- (c) Neither the Postal Service, the visions of 31 CFR 285.11 in their en- Postal Rate Commission nor any dis- tirety. The provisions of 31 CFR 285.11 bursing officer shall be liable for any should therefore be read as though payment made from moneys due from, modified to effectuate the application or payable by the Postal Service or the of that regulation to administrative Postal Rate Commission to any indi- wage garnishment proceedings con- vidual pursuant to legal process reg- ducted by, or on behalf of, the U.S. ular on its face. Postal Service.

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PART 501—AUTHORIZATION TO based indicia to indicate postage pay- MANUFACTURE AND DISTRIBUTE ment. They include but are not limited POSTAGE EVIDENCING SYSTEMS to postage meters and PC Postage systems. Sec. (b) A postage meter is a Postal Serv- 501.1 Definitions. ice-approved Postage Evidencing Sys- 501.2 Postage Evidencing System provider tem that uses a device to account for authorization. postage purchased and printed. The 501.3 Postage Evidencing System provider term meter as used in this part refers to qualification. a postage meter. 501.4 Changes in ownership or control, (c) PC Postage products are Postal bankruptcy, or insolvency. Service-approved Postage Evidencing 501.5 Burden of proof standard. 501.6 Suspension and revocation of author- Systems that use a personal computer ization. as an integral part of the system. PC 501.7 Postage Evidencing System require- Postage products may use the Internet ments. to download postage to a mailer’s com- 501.8 Postage Evidencing System test and puter from which the postage indicia approval. may then be printed. 501.9 Demonstration or test Postage Evi- (d) A provider is a person or entity dencing Systems. 501.10 Postage Evidencing System modifica- authorized under this section to manu- tions. facture and/or distribute Postage Evi- 501.11 Reporting Postage Evidencing Sys- dencing Systems to customers. tem security weaknesses. (e) A manufacturer of postage meters 501.12 Administrative sanctions. produces postage meters. 501.13 False representations of Postal Serv- (f) A distributor of postage meters ice actions. may be a manufacturer who leases 501.14 Postage Evidencing System inventory control processes. postage meters directly to end-user 501.15 Computerized Meter Resetting Sys- customers or may be an independent tem. entity who leases postage meters to 501.16 PC postage payment methodology. end-user customers on behalf of the 501.17 Decertified Postage Evidencing Sys- manufacturer. tems. (g) A customer is a person or entity 501.18 Customer information and authoriza- authorized by the Postal Service to use tion. 501.19 Intellectual property. a Postage Evidencing System as an end 501.20 Discontinued Postage Evidencing In- user in accordance with Mailing Stand- dicia. ards of the United States Postal Service, Domestic Mail Manual (DMM), includ- AUTHORITY: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 410, 2601, 2605; Inspector General ing 604 Postage Payment Methods and Act of 1978, as amended (Pub. L. 95–452, as Refunds, 4.0 Postage Meters and PC amended); 5 U.S.C. App. 3. Postage Products (Postage Evidencing Systems). SOURCE: 71 FR 65733, Nov. 9, 2006, unless otherwise noted. [71 FR 65733, Nov. 9, 2006, as amended at 80 FR 42392, July 17, 2015] § 501.1 Definitions. (a) Postage Evidencing Systems regu- § 501.2 Postage Evidencing System lated by part 501 produce evidence of provider authorization. prepayment of postage by any method (a) The Postal Service considers other than postage stamps and permit Postage Evidencing Systems and their imprints. A Postage Evidencing Sys- respective infrastructure to be essen- tem is a device or system of compo- tial to the exercise of its specific pow- nents that a customer uses to generate ers to prescribe postage and provide and print evidence that postage re- evidence of payment of postage under quired for mailing has been paid. Post- 39 U.S.C. 404(a)(2) and (4). age Evidencing Systems print indicia, (b) Due to the potential for adverse such as meter imprints or information- impact upon Postal Service revenue,

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the following activities may not be en- nancial reserves to guarantee uninter- gaged in by any person or entity with- rupted performance of not less than 3 out prior, written approval of the Post- months of operation. al Service: (e) Qualification and approval may be (1) Producing or distributing any based upon additional conditions Postage Evidencing System that gen- agreed to by the Postal Service and the erates U.S. postage. applicant. The applicant is approved in (2) Repairing, distributing, refur- writing to engage in the function(s) for bishing, remanufacturing, modifying, which authorization was sought and or destroying any component of a Post- approved. age Evidencing System that accounts (f) To the extent that any provider for or authorizes the printing of U.S. manufactures and/or distributes any postage. PC Postage product through any au- (3) Owning or operating an infra- thorized Postage Evidencing System, structure that maintains operating such provider must adhere to the re- data for the production of U.S. postage, quirements of these regulations. or accounts for U.S. postage purchased (g) The Postal Service office respon- for distribution through a Postage Evi- sible for administration of this part is dencing System. the Office of Payment Technology (PT) (4) Owning or operating an infra- or successor organization. All submis- structure that maintains operating sions to the Postal Service required or data that is used to facilitate registra- invited by this part are to be made to tion with the Postal Service of cus- this office in person or via mail to 475 tomers of a Postage Evidencing Sys- L’Enfant Plaza SW., Room 3500, Wash- tem. ington DC 20260–0004. (c) Any person or entity seeking au- [71 FR 65733, Nov. 9, 2006, as amended at 78 thorization to perform any activity de- FR 44438, July 24, 2013; 80 FR 42392, July 17, scribed in paragraph (b) of this section, 2015] or to materially modify any activity previously approved by the Postal § 501.3 Postage Evidencing System Service, must submit a request to the provider qualification. Postal Service in person or in writing. Any person or entity seeking author- Decisions of the Postal Service upon ization to manufacture and/or dis- such requests are effective only if in tribute Postage Evidencing Systems writing (including electronic mail). must: (d) Approval shall be based upon sat- (a) Satisfy the Postal Service of its isfactory evidence of the applicant’s in- integrity and financial responsibility. tegrity and financial responsibility, (b) Obtain Postal Service approval commitment to comply with the Postal under this part of at least one Postage Service’s revenue assurance practices Evidencing System satisfying the re- as outlined in section 501.16, and a de- quirements of Postal Service regula- termination that disclosure to the ap- tions. plicant of Postal Service customer, fi- (c) As a condition of obtaining au- nancial, or other data of a commercial thorization under this section, the nature necessary to perform the func- Postage Evidencing System provider’s tion for which approval is sought would facilities used for the manufacture, dis- be appropriate and consistent with tribution, storage, resetting, or de- good business practices within the struction of postage meters and all fa- meaning of 39 U.S.C. 410(c)(2). The cilities housing infrastructure sup- Postal Service may condition its ap- porting Postage Evidencing Systems proval upon the applicant’s agreement will be subject to unannounced inspec- to undertakings that would give the tion by representatives of the Postal Postal Service appropriate assurance of Service. If such facilities are outside the applicant’s ability to meet its obli- the continental United States, the pro- gations under this section, including vider will be responsible for all reason- but not limited to the method and able and necessary travel-related costs manner of performing certain finan- incurred by the Postal Service to con- cial, security, and servicing functions duct the inspections. Travel-related and the need to maintain sufficient fi- costs are determined in accordance

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with Postal Service Handbook F–15, of this agreement by the provider (as Travel and Relocation. At its discretion, well as its agent operating the third- the Postal Service may continue to party location) and will cooperate with fund routine inspections outside the the Postal Service in every reasonable continental United States as it has in way to help the Postal Service regain the past, provided the costs are not as- possession of the data and prevent its sociated with particular security issues further unauthorized use or disclosure. related to a provider’s Postage Evi- In the event that the Postal Service dencing System or supporting infra- cannot regain possession of the data or structure, or with the start-up or im- prevent its further unauthorized use or plementation of a new plant or of a disclosure, the provider shall indem- new or substantially changed manufac- nify the Postal Service from damages turing process. resulting from its (or such third-party) (1) When conducting an inspection actions. outside the continental United States, (e) Have, or establish, and keep under the Postal Service will make every efits active supervision and control ade- fort to combine the inspection with quate facilities for the control, dis- other inspections in the same general tribution, and maintenance of PES and geographic area in order to enable af- their replacement or secure disposal or fected providers to share the costs. The destruction when necessary and appro- Postal Service team conducting such priate. inspections will be limited to the min- [71 FR 65733, Nov. 9, 2006, as amended at 76 imum number necessary to conduct the FR 77149, Dec. 12, 2011] inspection. All air travel will be contracted for at the rates for official gov- § 501.4 Changes in ownership or con- ernment business, when available, trol, bankruptcy, or insolvency. under such rules respecting class of (a) Any person or entity authorized travel as apply to those Postal Service under § 501.2 must promptly notify the representatives inspecting the facility Postal Service when it has a reasonable at the time the travel occurs. expectation that there may be a (2) If political or other impediments change in its ownership or control in- prevent the Postal Service from concluding changes in the ownership of an ducting security evaluations of Post- affiliate which exercises control over age Evidencing System facilities in for- its Postage Evidencing System oper- eign countries, Postal Service approval ations in the United States. A change of the activities conducted in such fa- of ownership or control within the cilities may be suspended until such meaning of this section includes entry time as satisfactory inspections may into a strategic alliance or other agree- be conducted. ment whereby a third party either has (d) As the provider bears the ulti- access to data related to the security mate responsibility to ensure customer of the system or is a competitor to the information will not be compromised Postal Service. Any person or entity at any domestic or off shore locations, seeking to acquire ownership or con- the provider (as well as its agent oper- trol of a person or entity authorized ating domestic or off shore locations) under § 501.2 must provide the Postal will not cause or permit data to be re- Service satisfactory evidence that upon leased other than for the operation of completion of the contemplated trans- the third-party location. The provider action, it will satisfy the conditions for shall notify its customer that data re- approval stated in § 501.2. Early notifi- lating to its systems is being housed by cation of a proposed change in owner- a third-party location, and shall pro- ship or control will facilitate expedi- vide a copy thereof to the Postal Serv- tious review of an application to ac- ice of such notice to its customers. To quire ownership or control under this the extent that any unauthorized re- section. lease takes place, the vendor shall no- (b) Any person or entity authorized tify the Postal Service immediately under § 501.2 must promptly notify the upon discovery of any unauthorized use Postal Service when it has a reasonable or disclosure of data or any other expectation that there may be a breach or improper disclosure of data change in the status of its financial

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condition either through bankruptcy, of provisions of this part, or that its insolvency, assignment for the benefit Postal Evidencing System poses an un- of creditors, or other similar financial reasonable risk to postal revenue, PT, action. Any person or entity author- acting on behalf of the Postal Service, ized under § 501.2 who experiences a shall issue a written notice of proposed change in the status of its financial suspension citing the specific condi- condition may, at the discretion of the tions or deficiencies for which suspen- Postal Service, have its authorization sion of authorization to manufacture under § 501.2 modified or terminated. and/or distribute a specific Postage Ev- idencing System or class of Postage § 501.5 Burden of proof standard. Evidencing Systems may be imposed. The burden of proof is on the Postal Except in cases of willful violation, the Service in administrative determina- provider shall be given an opportunity tions of suspension and revocation to correct deficiencies and achieve under § 501.6 and administrative sanc- compliance with all requirements with- tions under § 501.12. Except as other- in a time limit corresponding to the wise indicated in those sections, the potential risk to postal revenue. standard of proof shall be the prepon- (2) In cases of willful violation, or if derance-of-evidence standard. the Postal Service determines that the provider has failed to correct cited de- § 501.6 Suspension and revocation of ficiencies within the specified time authorization. limit, PT shall issue a written notice of (a) The Postal Service may suspend suspension setting forth the facts and and/or revoke authorization to manu- reasons for the decision to suspend, and facture and/or distribute any or all of a the effective date if a written defense provider’s approved Postage Evidenc- is not presented as provided in para- ing System(s) if the provider engages graph (d) of this section. in any unlawful scheme or enterprise, (3) The notice shall also advise the fails to comply with any provision in provider of its right to file a response this Part 501, fails to implement in- under paragraph (d) of this section. If a structions issued in accordance with written response is not presented in a any final decision issued by the Postal timely manner the suspension may go Service within its authority over Post- into effect. The suspension shall re- age Evidencing Systems or if the Post- main in effect for ninety (90) calendar age Evidencing System or infrastruc- days unless revoked or modified by PT. ture of the provider is determined to (4) If, upon consideration of the de- constitute an unacceptable risk to fense as provided in paragraph (d) of Postal Service revenues. this section, the Postal Service deems (b) The decision to suspend or revoke that the suspension is warranted, the pursuant to paragraph (a) of this sec- suspension shall remain in effect for up tion shall be based upon the nature and to 90 days unless withdrawn by the circumstances of the violation (e.g. Postal Service, as provided in para- whether the violation was willful, graph (c)(5)(iii) of this section. whether the provider voluntarily ad- (5) At the end of the ninety (90) day mitted to the violation, or cooperated suspension, the Postal Service may: with the Postal Service, whether the (i) Extend the suspension in order to provider implemented successful reme- allow more time for investigation or to dial measures) and on the provider’s allow the provider time to correct the performance history. Before deter- problem. mining that a provider’s authorization (ii) Make a determination to revoke to manufacture and/or distribute Post- authorization to manufacture and/or age Evidencing Systems should be sus- distribute a Postage Evidencing Sys- pended or revoked, the procedures in tem in part or in whole. paragraph (c) of this section shall be (iii) Withdraw the suspension based followed. on identification and implementation (c) Suspension or revocation proce- of a satisfactory solution to the prob- dures: lem. (1) Upon determination by the Postal (d) The provider may present the Service that a provider is in violation Postal Service with a written defense

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to any suspension or revocation deter- type and preferably printed in red. The mination within thirty (30) calendar minimum width of the message should days of receiving the written notice be 3.25 inches, and the minimum height (unless a shorter period is deemed nec- should be 1.75 inches. The message essary). The defense must include all should read as follows: supporting evidence and state with specificity the reasons why the order RENTED POSTAGE METER-NOT FOR should not be imposed. SALE (e) After receipt and consideration of PROPERTY OF [NAME OF PROVIDER] the defense, PT shall advise the pro- (800) ###–#### vider of its decision, and the facts and Use of this meter is permissible only under reasons for it. The decision shall be ef- U.S. Postal Service authorization. Call fective upon receipt unless it provides [Name of Provider] at (800) ###–#### to relocate/return this meter. otherwise. The decision shall also advise the provider that it may be ap- WARNING! METER TAMPERING IS A FED- pealed within thirty (30) calendar days ERAL OFFENSE. of receipt (unless a shorter time frame IF YOU SUSPECT METER TAMPERING, CALL POSTAL INSPECTORS AT (800) 372– is deemed necessary). If an appeal is 8347 not filed in a timely manner, the decision of PT shall become a final decision REWARD UP TO $50,000 for information leading to the conviction of any person who of the Postal Service. The appeal may misuses postage meters resulting in the be filed with the Chief Information Of- Postal Service not receiving correct postage ficer of the Postal Service and must in- payments. clude all supporting evidence and state with specificity the reasons the pro- (2) Exceptions to the formatting of vider believes that the decision is erro- the required message are determined neous. The decision of the Chief Infor- on a case-by-case basis. Any deviation mation Officer shall constitute a final from standardized meter message re- decision of the Postal Service. quirements must be approved in writ- (f) An order or final decision under ing by the Postal Service. this section does not preclude any (c) The provider must ensure that other criminal or civil statutory, com- any matter printed by a postage evi- mon law, or administrative remedy dencing system, whether within the that is available by law to the Postal boundaries of the indicia or outside the Service, the United States, or any clear zone as defined in DMM 604.4.0 other person or entity. and the Performance Criteria for Infor- mation-Based Indicia and Security Ar- [71 FR 65733, Nov. 9, 2006, as amended at 78 chitecture for Open IBI Postage Evi- FR 44438, July 24, 2013] dencing Systems or Performance Cri- § 501.7 Postage Evidencing System re- teria for Information-Based Indicia and quirements. Security Architecture for Closed IBI (a) A Postage Evidencing System Postage Metering Systems, is: submitted to the Postal Service for ap- (1) Consistent with the Postal Serv- proval must meet the requirements of ice’s intent to maintain neutrality on the Intelligent Mail Indicia Perform- religious, social, political, legal, moral, ance Criteria published by PT. Copies or other public issues; of the current Performance Criteria (2) Is not obscene, deceptive, or de- may be requested via mail to the ad- famatory of any person, entity, or dress in § 501.2(g). group, and does not advocate unlawful (b) The provider must affix to all me- action; ters a cautionary message providing (3) Does not emulate any form of the meter user with basic reminders on valid postage, government, or other of- leasing and meter movement. ficial indicia, or payment of postage; (1) The cautionary message must be and placed on all meters in a conspicuous (4) Does not harm the public image, and highly visible location. PROP- reputation, or good will of the Postal ERTY OF [NAME OF PROVIDER] as Service and is not otherwise deroga- well as the provider’s toll-free number tory or detrimental to the interests of must be emphasized by capitalized bold the Postal Service.

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(d) Providers must also ensure that § 501.9 Demonstration or test Postage customers acknowledge, agree, and Evidencing Systems. warrant in writing that: (a) A demonstration or test postage (1) The customer bears full responsi- evidencing system is any system that bility and liability for obtaining au- produces an image that replicates a thorization to reproduce and otherwise postage indicium for which the Postal use the matter as proposed (including, Service has not received payment for without limitation, any trademarks, postage. The following procedures must slogans, likenesses or copyrighted ma- be followed to implement controls over terial contained in the image); demonstration or test Postage Evi- (2) The customer in fact has the legal dencing Systems: authority to reproduce and otherwise (1) A demonstration or test Postage use the matter as proposed; and Evidencing System may print only (3) The customer understands that specimen or test indicia. A specimen or images or other matter is not provided, test indicia must clearly indicate that approved, or endorsed in any way by the indicia does not represent valid the Postal Service. postage. (2) A demonstration or test Postage [71 FR 65733, Nov. 9, 2006, as amended at 78 Evidencing System must be recorded as FR 44439, July 24, 2013] such on internal provider inventory § 501.8 Postage Evidencing System test records and must be tracked by model and approval. number, serial number, and physical location. (a) To receive Postal Service ap- (3) A demonstration or test Postage proval, each Postage Evidencing Sys- Evidencing System must remain under tem must be submitted by the provider the provider’s direct control. A dem- and evaluated by the Postal Service in onstration or test Postage Evidencing accordance with the Postage Evidenc- System may not be left in the posses- ing Product Submission Procedures sion of a customer under any cir- published by PT. Copies of the current cumstance. Performance Criteria may be requested (b) All indicia printed by a dem- via mail to the address in § 501.2(g). onstration or test Postage Evidencing These procedures apply to all proposed System must be collected and de- Postage Evidencing Systems regardless stroyed daily. of whether the provider is currently authorized by the Postal Service to dis- § 501.10 Postage Evidencing System tribute Postage Evidencing Systems. modifications. All testing required by the Postal Serv- (a) An authorized provider must re- ice will be an expense of the provider. ceive prior written approval from the (b) As provided in § 501.11, the pro- manager, PT, of any and all changes vider has a duty to report security made to a previously approved Postage weaknesses to the Postal Service to en- Evidencing System. The notification sure that each approved Postage Evi- must include a summary of all changes dencing System protects the Postal made and the provider’s assessment as Service against loss of revenue at all to the impact of those changes on the times. A grant of approval of a system security of the Postage Evidencing does not constitute an irrevocable de- System and postage funds. Upon re- termination that the Postal Service is ceipt of the notification, PT will re- satisfied with the revenue-protection view the summary of changes and capabilities of the system. After ap- make a decision regarding the need for proval is granted to manufacture and/ the following: or distribute a Postage Evidencing Sys- (1) Additional documentation. tem, no change affecting its basic fea- (2) Level of test and evaluation re- tures or safeguards may be made ex- quired. cept as authorized or ordered by the (3) Necessity for evaluation by a lab- Postal Service in writing. oratory accredited by the National In- [71 FR 65733, Nov. 9, 2006, as amended at 78 stitutes of Standards and Technology FR 44439, July 24, 2013] (NIST) under the National Voluntary

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Laboratory Accreditation Program or causing operational disruption. (NVLAP). Cyber attacks may also be carried out (b) Upon receipt and review of addi- in a manner that does not require gain- tional documentation and/or test re- ing unauthorized access, such as by sults, PT will issue a written acknowl- causing denial-of-service attacks on edgement and/or approval of the Web sites. Cyber attacks may be car- change to the provider. ried out by third parties or insiders using techniques that range from high- [78 FR 44439, July 24, 2013] ly sophisticated efforts to electroni- § 501.11 Reporting Postage Evidencing cally circumvent network security or System security weaknesses. overwhelm Web sites to more tradi- (a) For purposes of this section, pro- tional intelligence gathering and social vider refers to the Postage Evidencing engineering aimed at obtaining infor- System provider authorized under mation necessary to gain access. Cyber § 501.2 and its foreign affiliates, if any, security risk disclosures reported must subsidiaries, assigns, dealers, inde- adequately describe the nature of the pendent dealers, employees, and parent material risks and specify how each corporations. risk affects the Postage Evidencing (b) Each authorized provider of a System. Postage Evidencing System must no- (c) Within a time limit corresponding tify the Postal Service within twenty- to the potential revenue risk to postal four (24) hours, upon discovery of the revenue as determined by the Postal following: Service, the provider must submit a (1) All findings or results of any test- written report to the Postal Service. ing known to the provider concerning The report must include the cir- the security or revenue protection fea- cumstances, proposed investigative tures, capabilities, or failings of any procedure, and the anticipated comple- Postage Evidencing System sold, tion date of the investigation. The pro- leased, or distributed by it that has vider must also provide periodic status been approved for sale, lease, or dis- reports to the Postal Service during tribution by the Postal Service or any subsequent investigation and, on com- foreign postal administration; or has pletion, must submit a summary of the been submitted for approval by the pro- investigative findings. vider to the Postal Service or other (d) The provider must establish and foreign postal administration(s). adhere to timely and efficient proce- (2) All potential security weaknesses dures for internal reporting of poten- or methods of tampering with the Post- tial security weaknesses and shall pro- age Evidencing Systems that the provide a copy of such internal reporting vider distributes of which it knows or procedures and instructions to the should know and the Postage Evidenc- Postal Service for review. ing System model subject to each such (e) Failure to comply with this sec- method. Potential security weaknesses tion may result in suspension of ap- include but are not limited to sus- proval under § 501.6 or the imposition of pected equipment defects, suspected sanctions under § 501.12. abuse by a customer or provider em- [71 FR 65733, Nov. 9, 2006, as amended at 77 ployee, suspected security breaches of FR 23396, Apr. 19, 2012] the Computerized Meter Resetting Sys- tem (CMRS) or databases housing con- § 501.12 Administrative sanctions. fidential customer data relating to the (a) An authorized Postage Evidencing use of Postage Evidencing Systems, oc- System provider may be responsible to currences outside normal performance, the Postal Service for revenue losses or any repeatable deviation from nor- caused by failure to comply with mal Postage Evidencing System per- § 501.11. formance. (b) The Postal Service shall deter- (3) Cyber attacks that include, but mine all costs and revenue losses meas- are not limited to, gaining unauthor- ured from the date that the provider ized access to digital systems for pur- knew, or should have known, of a po- poses of misappropriating assets or tential security weakness, including, sensitive information, corrupting data, but not limited to, administrative and

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investigative costs and documented decisions, actions, or proposed actions revenue losses that result from any of the Postal Service respecting its reg- Postage Evidencing System for which ulation of Postage Evidencing Sys- the provider failed to comply with any tems. The Postal Service reserves the provision in § 501.11. The Postal Service right to suspend and/or revoke the au- issues a written demand for reimburse- thorization to manufacture or dis- ment of any and all such costs and tribute Postage Evidencing Systems losses (net of any amount collected by throughout the United States or any the Postal Service from the customers) part thereof pursuant to § 501.6 when it with interest. The demand shall set determines that the provider, its forth the facts and reasons on which it is based. agents, or employees failed to comply (c) The provider may present the with this section. Postal Service with a written defense to the proposed action within thirty § 501.14 Postage Evidencing System inventory control processes. (30) calendar days of receipt. The defense must include all supporting evi- (a) Each authorized provider of Post- dence and state with specificity the age Evidencing Systems must perma- reasons for which the sanction should nently hold title to all Postage Evi- not be imposed. dencing Systems that it manufactures (d) After receipt and consideration of or distributes, except those purchased the defense, the Postal Service shall by the Postal Service or distributed advise the provider of the decision, and outside the United States. the facts and reasons for it; the deci- (b) An authorized provider must sion shall be effective upon receipt un- maintain sufficient facilities for and less it provides otherwise. The decision records of the business relationship, shall also advise the provider that it distribution, control, storage, mainte- may, within thirty (30) calendar days nance, repair, replacement, and de- of receiving written notice, appeal that struction or disposal of all Postage Ev- determination to the Chief Information idencing Systems and their compo- Officer of the Postal Service, who shall issue a written decision upon the ap- nents to enable accurate accounting peal, which will constitute the final and location thereof throughout the Postal Service decision. entire life cycle of each Postage Evi- (e) The imposition of an administra- dencing System. A complete record tive sanction under this section does shall entail a list by serial number of not preclude any other criminal or all Postage Evidencing Systems manu- civil statutory, common law, or admin- factured or distributed showing all istrative remedy that is available by movements of each system from the law to the Postal Service, the United time that it is produced until it is States, or any other person or entity. scrapped, and the reading of the as- (f) An authorized Postage Evidencing cending register each time the system System provider, who without just is checked into or out of service. These cause fails to follow any Postal Service records must be available for inspec- approved procedures, perform ade- tion by Postal Service officials at any quately any of the Postal Service ap- time during business hours. proved controls, or fails to obtain ap- (c) To ensure adequate control over proval of a required process in § 501.14 Postage Evidencing Systems, plans for in a timely fashion, is subject to an ad- the following subjects must be sub- ministrative sanction under this provi- mitted for prior approval, in writing, sion § 501.12. to the office of Payment Technology. [71 FR 65733, Nov. 9, 2006, as amended at 78 (1) Service procedures for all Postage FR 44439, July 24, 2013] Evidencing Systems—these are proce- § 501.13 False representations of Post- dures to address the process to be used al Service actions. for new Postage Evidencing Systems as well as those previously leased to an- Providers, their agents, and employees must not intentionally misrepre- other customer. sent to customers of the Postal Service

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(2) Transportation and storage of Post- there is any indication that the postage Evidencing Systems—these are pro- age meter has some mechanical or cedures that provide reasonable pre- electrical malfunction of any critical cautions to prevent use by unauthor- security component, such as any com- ized individuals. Providers must ship ponent the improper operation of all postage meters by Postal Service which could adversely affect Postal Registered Mail® service unless given Service revenues, or of any memory written permission by the Postal Serv- component, or that affects the accu- ice to use another carrier. The provider racy of the registers or the accuracy of must demonstrate that the alternative the value printed. delivery carrier employs security pro- (7) Lost or stolen postage meter proce- cedures equivalent to those for Reg- dures—the provider must promptly re- istered Mail service. port to the Postal Service the loss or (3) Postage Evidencing System examina- theft of any postage meter or the re- tion/inspection procedures and schedule— covery of any lost or stolen postage the provider is required to perform meter. Such notification to the Postal postage meter examinations or inspec- Service will be made by completing tions based on an approved schedule. and filing a standardized lost and sto- Failure to complete the postage meter len meter incident report within 10 cal- examination or inspections by the due endar days of the provider’s determina- date may result in the Postal Service tion of a meter loss, theft, or recovery. requiring the provider to disable the (8) Postage meter destruction—when re- meter’s resetting capability. If nec- quired, the postage meter must be ren- essary, the Postal Service shall notify dered completely inoperable by the de- the customer that the postage meter is struction process and associated post- to be removed from service and the au- age; printing dies and components thorization to use a Postage Evidenc- must be destroyed. Manufacturers or ing System revoked, following the pro- distributors of meters must submit the cedures for revocation specified by reg- proposed destruction method; a sched- ulation. The Postal Service shall notify ule listing the postage meters to be de- the provider to remove the postage stroyed, by serial number and model; meter from the customer’s location. and the proposed time and place of de- (4) Out-of-service procedures for a non- struction to Payment Technology for faulty Postage Evidencing System—these approval prior to any meter destruc- procedures must be used when the sys- tion. Providers must record and retain tem is to be removed from service for the serial numbers of the meters to be any reason. destroyed and provide a list of such se- (5) Postage Evidencing System repair rial numbers in electronic form in ac- process—any physical or electronic accordance with Postal Service require- cess to the internal components of a ments for meter accounting and track- postage meter, as well as any access to ing systems. Providers must give suffi- software or security parameters, must cient advance notice of the destruction be conducted within an approved facil- to allow Payment Technology to sched- ity under the provider’s direct control ule observation by its designated rep- and active supervision. To prevent un- resentative who shall verify that the authorized use, the provider or any destruction is performed in accordance third party acting on its behalf must with a Postal Service-approved method keep secure any equipment or other or process. To the extent that the Post- component that can be used to open or al Service elects not to observe a par- access the internal, electronic, or se- ticular destruction, the provider must cure components of a postage meter. submit a certification of destruction, (6) Handling procedures for faulty me- including the serial number(s), to the ters—the provider must maintain han- Postal Service within 5 calendar days dling procedures for faulty meters, in- of destruction. These requirements for cluding those that are inoperable, mis- meter destruction apply to all postage registering, have unreadable registers, meters, Postage Evidencing Systems, inaccurately reflect their current sta- and postal security devices included as tus, show any evidence of possible tam- a component of a Postage Evidencing pering or abuse, and those for which System.

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(d) If the provider uses a third party approval to manufacture and/or dis- to perform functions that may have an tribute Postage Evidencing Systems. impact upon a Postage Evidencing Sys- (5) The Postal Service reserves the tem (especially its security), including, right to review all aspects of any rela- but not limited to, business relation- tionship if it appears that the relationships, repair, maintenance, and dis- ship poses a threat to Postage Evidenc- posal of Postage Evidencing Systems, ing System security and may require Payment Technology must be advised the provider to take appropriate cor- in advance of all aspects of the rela- rective action. By entering into any re- tionship, as they relate to the custody lationship under this section, the pro- and control of Postage Evidencing Sys- vider is not relieved of any responsi- tems and must specifically authorize in bility to the Postal Service, and such writing the proposed arrangement be- must be stated in any memorialization tween the parties. of the relationship. (1) Postal Service authorization of a [77 FR 23618, Apr. 20, 2012] third-party relationship to perform specific functions applies only to the § 501.15 Computerized Meter Resetting functions stated in the written author- System. ization but may be amended to em- (a) Description. The Computerized brace additional functions. Meter Resetting System (CMRS) per- (2) No third-party relationship shall mits customers to reset their postage compromise the Postage Evidencing meters at their places of business. Au- System, or its components, including, thorized providers, who operate CMRS but not limited to, the hardware, soft- services, are known as resetting com- ware, communications, and security panies (RCs). components, or of any security-related (b) A customer is required to have system with which it interfaces, in- funds available on deposit with the cluding, but not limited to, the reset- Postal Service before resetting a Post- ting system, reporting systems, and age Evidencing System or the provider may opt to provide a funds advance in Postal Service support systems. The accordance with paragraph (c) of this functions of the third party with re- section. spect to a Postage Evidencing System, (c) If the RC chooses to offer ad- its components, and the systems with vancement of funds to customers, the which it interfaces are subject to the RC is required to maintain a deposit same scrutiny as the equivalent func- with the Postal Service equal to at tions of the provider. least one (1) day’s average funds ad- (3) Any authorized third party must vanced. The total amount of funds ad- keep adequate facilities for and records vanced to customers on any given day of Postage Evidencing Systems and shall not exceed the amount the pro- their components in accordance with vider has on deposit with the Postal paragraph (b) of this section. All such Service. The Postal Service shall not facilities and records are subject to in- be liable for any payment made by the spection by Postal Service representa- RC on behalf of a customer that is not tives, insofar as they are used to dis- reimbursed by the customer, since the tribute, control, store, maintain, re- RC is solely responsible for the collec- pair, replace, destroy, or dispose of tion of advances made by the RC. Postage Evidencing Systems. (d) The CMRS customer is permitted (4) The provider must ensure that to make deposits in one of three ways: any party acting on its behalf in any of check, electronic funds transfer (or the functions described in paragraph wire transfer), or automated clearing- (b) of this section maintains adequate house (ACH) transfer. These deposits facilities, records, and procedures for must be remitted to the Postal Serv- the security of the Postage Evidencing ice’s designated bank account. Systems. Deficiencies in the operations (e) The RC must require each CMRS of a third party relating to the custody customer that requests a meter reset- and control of Postage Evidencing Sys- ting to provide the meter serial num- tems, unless corrected in a timely ber, the CMRS account number, and manner, can place at risk a provider’s the meter’s ascending and descending

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register readings. The RC must verify nization (sub-service provider), Postal that there are sufficient funds in the Service management should consider customer’s CMRS account to cover the the nature and materiality of the postage setting requested before pro- transactions processed by the sub-serv- ceeding with the setting transaction ice organization and the contribution (unless the RC opts to provide the cus- of the sub-service organization’s proc- tomer a funds advance). esses and controls in the achievement (f) The Postal Service requires that of the Postal Service’s control objec- the RC publicize to all CMRS cus- tives. The Postal Service should have tomers the following payment options access to the sub-service organization’s (listed in order of preference): SOC 1 Type II SSAE 16 report. The con- (1) Automated clearinghouse (ACH) trol objectives to be covered by the debits/credits. SOC 1 Type II SSAE 16 report are sub- (2) Electronic funds transfers (wire ject to Postal Service review and ap- transfers). proval, and are to be provided to the (3) Checks. Postal Service 30 days prior to the ini- (g) Returned checks and ACH debits tiation of each examination period. As are the responsibility of the Postal a result of the examination, the service Service. Upon notice from the Postal auditor shall provide the RC and the Service’s designated bank, the provider Postal Service with an opinion on the will be required to immediately lock design and operating effectiveness of the customer account to prevent a the RC’s internal controls related to meter reset until the Postal Service re- the CMRS system and any other appli- ceives payment for the returned check cations and technology infrastructure or the provider is provided with valid considered material to the services ACH credit or wire information. provided to the Postal Service by the (h) Refunds. The Postal Service will RC. Such examinations are to be con- issue a refund in the amount remaining ducted on no less than an annual basis, in a customer’s Computerized Meter and are to be as of and for the 12 Resetting System account, after such months ended June 30 of each year (ex- time as the customer provides a writ- cept for new contracts for which the ten request to the provider, as long as examination period will be no less than the request meets the Postal Service the period from the contract date to approved minimum and time frame. the following June 30, unless otherwise (i) Security and Revenue Protection. To agreed to by the Postal Service). The receive Postal Service approval to con- examination reports are to be provided tinue to operate systems in the CMRS to the Postal Service by August 15 of environment, the RC must submit to a each year. To the extent that internal periodic examination of its CMRS sys- control weaknesses are identified in a tem and any other applications and SOC 1 Type II SSAE 16 report, the technology infrastructure that may Postal Service may require the remedi- have a material impact on Postal Serv- ation of such weaknesses and review ice revenues, as determined by the working papers and engage in discus- Postal Service. The examination shall sions about the work performed with be performed by a qualified, inde- the service auditor. The Postal Service pendent audit firm and shall be con- requires that all remediation efforts (if ducted in accordance with the State- applicable) are completed and reported ments on Standards for Attestation by the RC prior to the Postal Service’s Engagements (SSAEs) No. 16, Service fiscal year end (September 30). In addi- Organizations, developed by the Amer- tion, the RC will be responsible for per- ican Institute of Certified Public Ac- forming an examination of their inter- countants (AICPA), as amended or su- nal control environment related to the perseded. Expenses associated with CMRS system and any other applica- such examination shall be incurred by tions and technology infrastructure the RC. The examination shall include considered material to the services testing of the operating effectiveness provided to the Postal Service by the of relevant RC internal controls (SOC 1 RC, in particular, disclosing changes to Type II SSAE 16 Report). If the service internal controls for the period of July organization uses another service orga- 1 to September 30. This examination

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should be documented and submitted unable to reset the account until the to the Postal Service by October 14. Postal Service receives payment in The RC will be responsible for all costs full. related to the examinations conducted (e) Refunds. The provider issues a re- by the service auditor and the RC. fund to a customer for any unused (j) Inspection of records and facilities. postage in a Postage Evidencing Sys- The RC must make its facilities that tem. After verification by the Postal handle the operation of the computer- Service, the provider will be reim- ized resetting system and all records bursed by the Postal Service for the in- about the operation of the system dividual refunds provided to customers available for inspection by representa- by the provider. tives of the Postal Service at all rea- (f) Security and Revenue Protection. To sonable times. At its discretion, the receive Postal Service approval to con- Postal Service may continue to fund tinue to operate PC Postage systems, inspections as it has in the past, pro- the provider must submit to a periodic vided the costs are not associated with examination of its PC Postage system a particular security issue related to and any other applications and tech- the provider’s CMRS or supporting in- nology infrastructure that may have a frastructure. material impact on Postal Service rev- (k) The RC is required to incorporate enues, as determined by the Postal the following language into its meter rental agreements: Service. The examination shall be performed by a qualified, independent ACKNOWLEDGMENT OF DEPOSIT audit firm and shall be conducted in REQUIREMENT—METERS accordance with the Statements on By signing this meter rental agreement, Standards for Attestation Engage- you the customer represent that you have ments (SSAEs) No. 16, Service Organi- read the Acknowledgment of Deposit Require- zations, developed by the American In- ment—Meters and are familiar with its terms. stitute of Certified Public Accountants You agree that, upon execution of this agree- (AICPA), as amended or superseded. ment with the RC, you will also be bound by Expenses associated with such exam- all terms and conditions of the Acknowledg- ment of Deposit Requirement—Meters, as it ination shall be incurred by the pro- may be amended from time to time. vider. The examination shall include testing of the operating effectiveness [71 FR 65733, Nov. 9, 2006, as amended at 75 FR 56472, Sept. 16, 2010; 77 FR 56554, Sept. 13, of relevant provider internal controls 2012; 79 FR 10994, Feb. 27, 2014] (SOC1 Type II SSAE 16 Report). If the service organization uses another serv- § 501.16 PC postage payment method- ice organization (sub-service provider), ology. Postal Service management should (a) The PC Postage customer is per- consider the nature and materiality of mitted to make payments for postage the transactions processed by the sub- in one of two ways: Automated clear- service organization and the contribu- inghouse (ACH) transfer or credit card. tion of the sub-service organization’s (b) The provider must make pay- processes and controls in the achieve- ments on behalf of the customer to the ment of the Postal Service’s control Postal Service in accordance with con- objectives. The Postal Service should tractual and/or regulatory responsibil- have access to the sub-service organi- ities. zation’s SOC 1 Type II SSAE 16 report. (c) The Postal Service requires that The control objectives to be covered by the provider publicize to all PC Post- the SOC 1 Type II SSAE 16 report are age customers the following payment subject to Postal Service review and options (listed in order of preference): approval, and are to be provided to the (1) Automated clearinghouse (ACH) Postal Service 30 days prior to the ini- debits/credits. tiation of each examination period. As (2) Credit cards. a result of the examination, the service (d) Returned ACH debits are the re- auditor shall provide the provider and sponsibility of the Postal Service. The the Postal Service with an opinion on RC must lock the customer account the design and operating effectiveness immediately so that the customer is of the internal controls related to the

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PC Postage system, and any other ap- ACKNOWLEDGMENT OF DEPOSIT plications and technology infrastruc- REQUIREMENT—PC POSTAGE ture considered material to the serv- By signing this agreement with the pro- ices provided to the Postal Service by vider, you represent that you have read the the provider. Such examinations are to Acknowledgment of Deposit Requirement— be conducted on no less than an annual PC Postage and are familiar with its terms. You agree that, upon execution of this agree- basis, and are to be as of and for the 12 ment with the provider, you will also be months ended June 30 of each year (ex- bound by all terms and conditions of the Ac- cept for new contracts for which the knowledgment of Deposit Requirement—PC examination period will be no less than Postage, as it may be amended from time to the period from the contract date to time. the following June 30, unless otherwise (i) Revenue Assurance. To operate PC agreed to by the Postal Service). The Postage systems, the provider must support business practices to assure examination reports are to be provided Postal Service revenue and accurate to the Postal Service by August 15 of payment from customers. Specifically, each year. To the extent that internal the provider is required to notify the control weaknesses are identified in a customer and adjust the balance in the SOC 1 Type II SSAE 16 report, the postage evidencing system or otherwise Postal Service may require the remedi- facilitate postage corrections to ad- ation of such weaknesses, and review dress any postage discrepancies as di- working papers and engage in discus- rected by the Postal Service, subject to sions about the work performed with the applicable notification periods and the service auditor. The Postal Service dispute mechanisms available to cus- requires that all remediation efforts (if tomers for these corrections. The Post- applicable) are completed and reported al Service will supply the provider with by the provider prior to the Postal the necessary detail to justify the cor- Service’s fiscal year end (September rection and amount of the postage cor- 30). In addition, the provider will be re- rection to be used in the adjustment sponsible for performing an examina- process. The provider must supply cus- tion of their internal control environ- tomers with visibility into the identi- ment related to the PC Postage system fied postage correction, facilitate a and any other applications and tech- payment adjustment from the cus- nology infrastructure considered mate- tomer in the amount equivalent to the rial to the services provided to the identified postage discrepancies to the Postal Service by the provider, in par- extent possible, and enable customers ticular, disclosing changes to internal to submit electronic disputes of such postage discrepancies to the Postal controls for the period of July 1 to Sep- Service. Further if the Customer does tember 30. This examination should be not have funds sufficient to cover the documented and submitted to the Post- amount of the discrepancies or the al Service by October 14. The provider postage discrepancies have not been re- will be responsible for all costs related solved, the provider may be required to to the examinations conducted by the temporarily suspend or permanently service auditor and the provider. shut down the customer’s ability to (g) Inspection of records and facilities. print PC Postage as described in the The provider must make its facilities, Domestic Mail Manual section 604.4. which handle the operation of the PC [72 FR 33163, June 15, 2007, as amended at 75 Postage system and all records about FR 56472, Sept. 16, 2010; 79 FR 10995, Feb. 27, the operation of the system, available 2014; 80 FR 42392, July 17, 2015] for inspection by representatives of the EFFECTIVE DATE NOTE: At 82 FR 15465, Mar. Postal Service at all reasonable times. 29, 2017, § 501.16 was amended by revising (h) To the extent that the customer paragraph (i), effective Aug. 1, 2017. For the maintains funds on deposit for the pay- convenience of the user, the revised text is ment of postage, the provider is reset forth as follows: quired to incorporate the following lan- § 501.16 PC postage payment methodology. guage into its agreements with PC Postage customers: * * * * *

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(i) Revenue assurance. (1) The PC Postage via phone call to the customer care center or provider must support business practices to API in the PC Postage provider’s user inter- assure Postal Service revenue and accurate face of postage collections. In addition, the payment from customers. For purposes of PC Postage provider must convey the Postal this paragraph, PC Postage provider shall Service’s dispute decision to the customer. If mean: providers who offer PC Postage products the Postal Service determines the cus- (as such terms are defined in § 501.1); Click-N- tomer’s dispute was valid, and the customer Ship® service; and postage resellers when had already paid the postage adjustment, the such resellers transmit postage revenue to PC Postage provider must return the postage the Postal Service in any manner other than adjustment to the customer when notified by through a PC Postage provider. With respect the Postal Service according to the rules set to the reseller transactions described above, forth in paragraph (i)(2)(iii)(B) of this sec- the resellers, and not the PC Postage pro- tion. viders who provide the labels, are responsible (iii)(A) In the case of an underpayment for complying with this paragraph. For the that exceeds the threshold amount, within 14 purpose of this paragraph, a reseller is an en- business days of receiving notice of the un- tity that obtains postage through a PC Post- derpayment from the Postal Service the PC age provider and is authorized to resell such Postage provider must pay the postage ad- postage to its customers pursuant to an justment directly to the Postal Service, or agreement with the Postal Service. For ex- seek to collect the postage adjustment from ample, an entity that sells postage to its the customer in accordance with this para- customers, but uses a PC Postage provider to graph. If the PC Postage provider opts to enable its customers to print postage labels, is a reseller hereunder. If that entity collects pursue collection activity, it must notify the postage revenue from its customers and customer of the details of the postage adjust- transmits it to the Postal Service directly ment (including the dispute process), retain (instead of through the PC Postage provider) evidence that such notice was actually re- that entity shall be deemed a PC Postage ceived by the customer, and attempt to col- provider hereunder. For the purpose of this lect the postage adjustment by adjusting the paragraph, a customer is the person or entity funds available to the customer in the Post- that deposits the mail piece into the mail age Evidencing System, or if funds are not system. PC Postage providers must comply available, facilitating customer payment by with these revenue assurance requirements invoicing the customer or by pursuing other regardless of whether they have a direct re- methods available to collect against the cus- lationship with the customer or sell postage tomer or access funds of the customer. If the to the customer through one or more re- customer has a Postage Evidencing System sellers. account, the PC Postage provider must proc- (2)(i) For the purposes of this paragraph, a ess any refunds due to the customer under postage adjustment is defined as the difference paragraph (i)(2)(iii)(B) of this section before between the postage or fee actually paid to processing any collections due to the Postal the Postal Service for a specific service, and Service hereunder. If the PC Postage pro- the actual postage due to the Postal Service vider opts to pursue collection activity, it under the published or negotiated rate for shall continue to make affirmative efforts to that service, as applicable, which shall be collect the postage adjustment from the cus- calculated as of the time the mail piece is tomer until the postage adjustment is satis- entered into the mailstream. fied in whole or the collection period (as de- (ii) When the collection of a postage ad- fined in paragraph (i)(2)(iii)(C) of this sec- justment or the provision of a refund is ap- tion) expires. Immediately upon receiving or propriate because a customer has underpaid securing access to funds of the customer, the or overpaid the amount of postage that PC Postage provider shall remit to the Post- should have been paid, and such postage ad- al Service any and all available funds from justment exceeds a threshold amount to be the customer’s account from the Postage Ev- set by the Postal Service from time to time idencing System or that are otherwise recov- in its discretion, the PC Postage provider ered by the PC Postage provider to the ex- must, upon receiving notice from the Postal tent necessary to satisfy the postage adjust- Service, pay, attempt to collect, or refund, ment. The postage adjustment must be paid as applicable, the postage adjustment in ac- in full; no partial payments will be accepted cordance with paragraph (i)(2)(iii) of this sec- by the Postal Service, except for payments tion. The Postal Service will supply the PC made under paragraph paragraph (i)(2)(iii)(C) Postage provider with the details necessary of this section. to explain the correction and the amount of (B) In the case of an overpayment that ex- the postage adjustment to be used in the ad- ceeds the threshold amount, the Postal Serv- justment process. As part of this process, the ice shall within 14 business days of identi- PC Postage provider shall enable customers fying the overpayment, provide notice of the to submit disputes concerning the postage postage adjustment to the PC Postage pro- adjustment to the Postal Service, in a meth- vider and instruct the PC Postage provider od approved by the Postal Service, including to give the customer a credit and adjust the

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funds available to the customer in the Post- ages relating to loss of profit or business age Evidencing System. If the Postage Evi- interruption) arising from or related to any dencing System account has been closed or customer’s permanent or temporary inabil- for customers who do not have individual ity to print postage labels in accordance Postage Evidencing System accounts, the with this paragraph (i)(2)(iv) or as a result of Postal Service shall instruct the PC Postage funds offset in accordance with this para- provider to issue a refund to the customer graph. and the Postal Service shall either refund (v) The Postal Service, in its discretion, the postage adjustment to the PC Postage may adopt and modify from time to time, provider or permit the PC Postage provider and the PC Postage providers shall comply to submit a reconciliation to the Postal with, business rules setting forth processes Service. The PC Postage provider must im- (including time constraints) for payments, mediately upon receiving notice of the over- refunds, account suspensions, collections, payment from the Postal Service, notify the notifications, dispute resolutions and other customer and, consistent with the Postal activities to be performed hereunder. Such Service’s instructions, adjust the funds business rules will be published in the FED- available to the customer in the Postage Ev- ERAL REGISTER. idencing System, refund the postage adjust- (3)(i) Without regard to any threshold, if ment to the customer, or provide a credit to the PC Postage provider incorrectly pro- the customer. If the PC Postage provider is grammed postage rates, delayed program- unable to comply with the above require- ming postage rate changes, or otherwise pro- ments within 2 business days, the PC Post- vided systems or software which caused cus- age provider must immediately notify the tomers to pay incorrect postage amounts, Postal Service. then within two calendar weeks of the PC (C) The collection period is a time period to Postage provider being made aware of such be set by the Postal Service not to exceed 60 error, the PC Postage provider shall: calendar days after initial notification by (A) Correct the programming error; the Postal Service, subject to any applicable (B) Provide the Postal Service with a de- notification periods and dispute mechanisms tailed breakdown of how the error affected that may be available to customers for these the PC Postage provider’s collection of rev- corrections. If an underpayment has not enue; and been satisfied within this collection period, (C) Pay the Postal Service for the postage the PC Postage provider shall adjust any deficiency caused by the programming error, funds available to the customer in the Post- except in instances where the error was age Evidencing System to satisfy the post- caused by the Postal Service or as a direct age adjustment to the greatest extent pos- result of incorrect specifications provided by sible, and assist the Postal Service in its ef- the Postal Service. forts to pursue any remedies that may be (4) The PC Postage provider is responsible available in law or equity, including seeking for ensuring that: payment directly from the customer. (i) All customers pay (and the Postal Serv- (iv)(A) In the case of an underpayment ice receives) the current published prices that exceeds the threshold amount, imme- that are available to customers who pur- diately upon receiving notice of the under- chase postage through an approved PC Post- payment from the Postal Service the PC age provider, or negotiated contracted prices Postage provider shall prohibit the customer where applicable in accordance with this from printing additional postage labels until paragraph; and the postage adjustment is satisfied in ac- (ii) All payments to the Postal Service (or cordance with paragraph (i)(2)(iii)(A) of this the log files necessary for the Postal Service section, or the customer disputes the adjust- to collect payments directly from cus- ment and prevails. The Postal Service may, tomers) are complete and accurate and are in its discretion, waive or delay this prohibi- initiated or transmitted, as applicable, to tion in specific instances. the Postal Service each day. (B) Separately, without regard to any (5) Each PC Postage provider shall: threshold, in certain cases (such as where a (i) Before each customer’s first transaction customer is suspected of having inten- following the implementation date of August tionally or repeatedly underpaid postage) the 1, 2017, provide notice to such customer of Postal Service may, in its discretion, in- the terms, conditions and processes de- struct the PC Postage provider to shut down scribed in this paragraph—including, with- temporarily or permanently a customer’s out limitation, that the customer may be ability to print PC Postage, and the PC Post- charged for deficient payments and pre- age provider shall promptly comply with vented from printing additional postage la- such instruction. bels while a postage adjustment remains un- (C) In no event shall the Postal Service be paid—and obtain a certification from each liable to any PC Postage provider, customer customer that the customer has read, under- or other party for any direct, indirect, exem- stands and agrees to such terms, conditions plary, special, consequential, or punitive and processes, as they may be amended or damages (including without limitation dam- supplemented from time to time;

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(ii) Ensure that each customer certifies Postal Service in the FEDERAL REG- that it: ISTER; a suspension or revocation under (A) Will comply with all laws and regula- § 501.6; or a voluntary withdrawal un- tions applicable to Postal Service services, including, without limitation, the provisions dertaken by the provider. of the Domestic Mail Manual and the Inter- (b) A Decertified Postage Evidencing national Mail Manual, System must be withdrawn from serv- (B) Does not owe any money to the Postal ice by the date agreed to by the Postal Service and is not a controlling member or Service and provider. officer of an entity that owes money to the Postal Service, and (c) To the extent postage meters are (C) Authorizes the PC Postage provider to involved, the provider must utilize the disclose the customer’s personal information approved procedures for lost and stolen to the Postal Service and such other infor- meters under § 501.14(c)(7) to locate the mation retained by the PC Postage provider that may enable the Postal Service to col- meter and remove it from service by lect debts owed to it; the agreed upon date. (iii) Maintain a complete and accurate (d) Decertified Postage Evidencing record for each customer, which includes Systems that are not submitted to the such customer’s current name and a valid Postal Service for refund within one U.S. address that is sufficient for service of process under the law, as well as a copy of all hundred and eighty (180) days of the terms agreed to by the customer and the agreed upon withdrawal from service date of such agreements; date will not be eligible for refund of (iv) Comply with applicable laws, rules, unused postage. regulations and guidelines and ensure that (e) Postage indicia printed by Decer- its Postage Evidencing Systems, software, interfaces, communications and other prop- tified Postage Evidencing Systems erties that are used to sell or market Postal may no longer be considered valid post- Service products accurately describe such age one hundred and eighty (180) days products; from the agreed upon withdrawal from (v) Cover any costs or damages that the service date. Postal Service may incur as a result of such PC Postage provider or its employees, con- § 501.18 Customer information and au- tractors, or representatives failing to comply with the terms of this section, or any ap- thorization. plicable law, regulation, rule, or government (a) Authorized providers must elec- policy; and tronically transmit the necessary cus- (vi) In performing its obligations hereunder, comply with the business rules that tomer information to the designated shall be published in the FEDERAL REGISTER Postal Service central data processing from time to time and provide all agreed- facility, in Postal Service-specified for- upon interface documentation (as updated mat, in order for the Postal Service to from time to time). authorize a customer to use a Postage (6) In the event that the Postal Service Evidencing System. Postal Service re- fails to exercise or delays exercising any right, remedy, or privilege under this para- ceipt and acceptance of the customer graph, such failure or delay shall not operate information provides the customer as a waiver thereof or of any other provision with the authorization to possess or hereof, nor shall any single or partial exer- use a Postage Evidencing System in ac- cise of any right, remedy, or privilege pre- cordance with DMM 604 Postage Pay- clude any further exercise of the same. The rights and remedies available to the Postal ment Methods, 4.0 Postage Meters and Service under this paragraph are cumulative PC Postage Products (Postage Evidenc- and in addition to, and do not diminish, any ing Systems). rights or remedies otherwise available to the (b) The Postal Service may refuse to Postal Service. issue a customer authorization to use a Postage Evidencing System for the fol- § 501.17 Decertified Postage Evidenc- ing Systems. lowing reasons: (1) The customer submitted false or (a) A Decertified Postage Evidencing System is a device for which the pro- fictitious information. vider’s authority to distribute has been (2) Within five years preceding sub- withdrawn by the Postal Service as a mission of the information, the cus- result of any retirement plan for a tomer violated any standard for the given class of meters published by the care or use of the Postage Evidencing

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System, including any unresolved iden- www.usps.com. Examples include the tified postage discrepancies that re- following: sulted in revocation of that customer’s (1) Communication with customers authorization. who may no longer be visiting a tradi- (3) Or there is sufficient reason to be- tional Postal Service retail outlet or lieve that the Postage Evidencing Sys- communication with customers tem is to be used in violation of the ap- through any new retail channels. plicable standards. (2) Issuance (including re-authoriza- (c) The Postal Service will notify the tion, renewal, transfer, revocation or provider of the revocation of a cus- denial, as applicable) of authorization tomer’s authorization to use a Postage to use a Postage Evidencing System to Evidencing System. Within ten (10) a postal patron that uses a Postage Ev- days of receipt of the notice of revoca- idencing System, and communications tion, the provider must cancel any with respect to the status of such au- lease or other agreement and remove thorization. the Postage Evidencing System from (3) Disclosure to a meter provider of service. A customer’s authorization to the identity of any meter required to use a Postage Evidencing system is be removed from service by that meter subject to revocation for any of the fol- provider, and any related customer lowing reasons: data, as the result of revocation of an (1) A Postage Evidencing System is authorization to use a Postage Evi- used for any illegal scheme or enter- dencing System, questioned accurate prise. registration of that meter, or de-cer- (2) The customer’s Postage Evidenc- tification by the Postal Service of any ing System is not used for twelve (12) particular class or model of postage consecutive months. meter. (3) Sufficient control of a Postage (4) Tracking the movement of meters Evidencing System is not exercised or between a meter provider and its cus- the standards for its care or use are not tomers and communications to a meter followed. provider (but not to any third party (4) The Postage Evidencing System is other than the customer) concerning kept or used outside the customs terri- such movement. The term meter pro- tory of the United States or those U.S. vider includes a meter provider’s deal- territories and possessions where the ers and agents. Postal Service operates. (5) To transmit general information (5) The customer is in possession of a to all Postage Evidencing System cus- Decertified Postage Evidencing Sys- tomers concerning rate and rate cat- tem. egory changes implemented or pro- (6) The customer has any unresolved posed for implementation by the Postal postage discrepancies. Service. (d) The provider must electronically (6) To advertise Postal Service serv- transmit any updates to the necessary ices relating to the acceptance, proc- customer information to the des- essing, and delivery of, or postage pay- ignated Postal Service central data ment for, metered mail. processing facility, in Postal Service- (7) To allow the Postal Service to specified format. communicate with Postal Service cus- (e) No one other than an authorized tomers on products, services, and other provider may possess a Postage Evi- information otherwise available to dencing System without a valid rental Postal Service customers through tra- or other agreement with the provider. ditional retail outlets. Other parties in possession of a Post- (8) Any internal use by Postal Serv- age Evidencing System must imme- ice personnel, including identification diately surrender it to the provider or and monitoring activities relating to the Postal Service. Postage Evidencing Systems, provided (f) The Postal Service may use cus- that such use does not result in the dis- tomer information consistent with the closure of applicant information to any Privacy Act and the Postal Service’s third party or will not enable any third privacy policies posted on http:// party to use applicant information for

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its own purposes; except that the appli- age Evidencing System is capable of cant information may be disclosed to being used in commerce, the provider other governmental agencies for law shall indemnify the Postal Service for enforcement purposes as provided by use of such intellectual property in law. both the use of the Postage Evidencing (9) Identification of authorized Post- System and the processing of mail age Evidencing System providers or an- bearing indicia produced by the Post- nouncement of the de-authorization of age Evidencing System. an authorized provider, or provision of currently available public information, § 501.20 Discontinued Postage Evi- where an authorized provider is identi- dencing Indicia. fied. (a) Decertified indicia (evidence of pre- (10) To promote and encourage the paid postage) are indicia that have use of Postage Evidencing Systems as a been withdrawn by the Postal Service form of postage payment, provided that as valid forms of postage evidence the same information is provided to all through publication by the Postal Postage Evidencing System customers Service in the FEDERAL REGISTER, or and no particular Postage Evidencing by voluntary withdrawal undertaken System provider will be recommended by the provider. by the Postal Service. (b) Effective January 1, 2016, all Post- (11) To contact customers in cases of age Evidencing Systems (postage me- revenue fraud or revenue security. ters and PC Postage products) will be (12) Disclosure to a Postage Evidenc- required to produce Information-Based ing System provider of applicant infor- Indicia (IBI) or Intelligent Mail Indicia mation pertaining to that provider’s (IMI) for evidence of pre-paid postage. customers that the Postal Service Non-IBI and non-IMI indicia will be de- views as necessary to enable the Postal certified effective January 1, 2016, and Service to carry out its duties and pur- may not be used as a valid form of poses. postage evidence. These decertified in- (13) To transmit to a Postage Evi- dicia will not be recognized as valid dencing System provider all applicant postage after December 31, 2015. and system information pertaining to that provider’s customers and systems [78 FR 8407, Feb. 6, 2013] that may be necessary to permit such provider to synchronize its computer PART 551—SEMIPOSTAL STAMP databases with information contained PROGRAM in the computer files of the Postal Service. Sec. (14) Subject to the conditions stated 551.1 Semipostal Stamp Program. herein, to communicate in oral or writ- 551.2 Semipostal stamps. ten form with any or all applicants any 551.3 Procedure for selection of causes and information that the Postal Service recipient executive agencies. 551.4 Submission requirements and selec- views as necessary to enable the Postal tion criteria. Service to carry out its duties and pur- 551.5 Frequency and other limitations. poses under part 501. 551.6 Pricing. [71 FR 65733, Nov. 9, 2006, as amended at 80 551.7 Calculation of funds for recipient exec- FR 42393, July 17, 2015] utive agencies. 551.8 Cost offset policy.

§ 501.19 Intellectual property. AUTHORITY: 39 U.S.C. 101, 201, 203, 401, 403, Providers submitting Postage Evi- 404, 410, 414, 416. dencing Systems to the Postal Service SOURCE: 66 FR 31826, June 12, 2001, unless for approval are responsible for obtain- otherwise noted. ing all intellectual property licenses that may be required to distribute § 551.1 Semipostal Stamp Program. their product in commerce and to allow The Semipostal Stamp Program is the Postal Service to process mail established under the Semipostal Au- bearing the indicia produced by the thorization Act, Public Law 106–253, 114 Postage Evidencing System. To the ex- Stat. 634 (2000), as amended by Public tent approval is granted and the Post- Law 107–67, section 652, 115 Stat. 514

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(2001). The Office of Stamp Services has ices may publicize this request for pro- primary responsibility for admin- posals in the FEDERAL REGISTER or istering the Semipostal Stamp Pro- through other means, as it determines gram. The Office of Accounting, Fi- in its discretion. Proposals for nance, Controller has primary respon- semipostal stamps made prior to May sibility for the financial aspects of the 20, 2016 will not be given further con- Semipostal Stamp Program. sideration. Nothing in these regula- [67 FR 5215, Feb. 5, 2002] tions should be construed as barring the resubmission of previously sub- § 551.2 Semipostal stamps. mitted causes and recipient executive Semipostal stamps are stamps that agencies. are sold for a price that exceeds the (b) Proposals will be received by the postage value of the stamp. The dif- Office of Stamp Services, which will reference between the price and postage view each proposal under § 551.4. value of semipostal stamps, also known (c) The Office of Stamp Services will as the differential, less an offset for forward those proposals that satisfy reasonable costs, as determined by the the requirements of § 551.4 to the Citi- Postal Service, consists of a contribu- zens’ Stamp Advisory Committee for tion to fund causes determined by the its consideration. Postal Service to be in the national (d) Based on the proposals received public interest and appropriate. Funds from the Office of Stamp Services, the are to be transferred to selected recipi- Citizens’ Stamp Advisory Committee ent executive agencies, as defined may make recommendations on causes under 5 U.S.C. 105. The office of Stamp and eligible recipient executive agen- Services determines the print quan- cies to the postmaster general. The tities of semipostal stamps. The use of Citizens’ Stamp Advisory Committee semipostal stamps shall be voluntary may recommend more than one cause on the part of postal patrons. and eligible recipient executive agency at the same time. § 551.3 Procedure for selection of (e) Meetings of the Citizens’ Stamp causes and recipient executive Advisory Committee are closed, and agencies. deliberations of the Citizens’ Stamp The Postal Service has discretionary Advisory Committee are pre-decisional authority to select causes and recipi- in nature. ent executive agencies to receive funds (f) In making decisions concerning raised through the sale of semipostal semipostal stamps, the postmaster gen- stamps. These regulations apply only eral may take into consideration such to such discretionary semipostal factors, including the recommenda- stamps and do not apply to semipostal tions of the Citizens’ Stamp Advisory stamps that are mandated by Act of Committee, as the postmaster general Congress, such as the Breast Cancer Re- determines are appropriate. The deci- search stamp. The procedure for selec- sion of the postmaster general shall be tion of causes and recipient executive the final agency decision. agencies is as follows: (g) The Office of Stamp Services will (a) The Office of Stamp Services will notify each executive agency in writing accept proposals from interested per- of a decision designating that agency sons for future semipostal stamps be- as a recipient of funds from a ginning on May 20, 2016. The Office of semipostal stamp. Stamp Services will begin considering (h) As either a separate matter, or in proposals on July 5, 2016. The Postal combination with recommendations on Service intends to issue five semipostal a cause and recipient executive agen- stamps under these regulations during cies, the Citizens’ Stamp Advisory the 10-year period established by Con- Committee may recommend to the gress in 39 U.S.C. 416(g). Each postmaster general a design (i.e., art- semipostal stamp will be sold for no work) for the semipostal stamp. The more than two years. Proposals may be postmaster general will make a final submitted and will be considered on a decision on the design to be featured. rolling basis until seven years after (i) The decision of the postmaster May 20, 2016. The Office of Stamp Serv- general to exercise the Postal Service’s

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discretionary authority to issue a posal must specify the percentage semipostal stamp is final and not sub- shares of differential revenue, net of ject to challenge or review. the Postal Service’s reasonable costs, [81 FR 23163, Apr. 20, 2016] to be given to each agency. If percentage shares are not specified, it is pre- § 551.4 Submission requirements and sumed that the proposal intends that selection criteria. the funds be split evenly between the (a) Proposals on recipient executive agencies. If more than two recipient agencies and causes must satisfy the executive agencies are proposed to re- following requirements: ceive funds and the proposal is se- (1) Interested persons must timely lected, the postmaster general will pro- submit the proposal by U.S. Mail to the vide the recipient executive agencies Office of Stamp Services, Attn: with an opportunity to jointly decide Semipostal Discretionary Program, 475 which two agencies will receive funds. L’Enfant Plaza SW., Room 3300, Wash- If the agencies are unable to reach a ington, DC 20260–3501, or in a single joint decision within 20 days, the post- Adobe Acrobat (.pdf) file sent by email master general shall either decide to [email protected]. Indicate in the which two agencies will receive funds Subject Line: Semipostal Discretionary or select another proposal. Program. For purposes of this section, (ii) If more than one proposal is sub- interested persons include, but are not mitted for the same cause, and the pro- limited to, individuals, corporations, posals would have different executive associations, and executive agencies agencies receiving funds, the funds under 5 U.S.C. 105. may be evenly divided among the exec- (2) The proposal must be signed by utive agencies, with no more than two the individual or a duly authorized rep- agencies being designated to receive resentative and must provide the mail- funds, as determined by the postmaster ing address, phone number, fax number general. (if available), and email address of a (b) Proposals become the property of designated point of contact. the Postal Service and are not returned (3) The proposal must describe the to interested persons who submit them. cause and the purposes for which the Interested persons who submit pro- funds would be used. posals are not entitled to any remu- (4) The proposal must demonstrate neration, compensation, or any other that the cause to be funded has broad form of payment, whether their pro- national appeal, and that the cause is posals are selected or not, for any rea- in the national public interest and fur- son. thers human welfare. Respondents are (c) The following persons may not encouraged to submit supporting docu- submit proposals: mentation demonstrating that funding (1) Employees of the United States the cause would benefit the national Postal Service; public interest. (2) Any contractor of the Postal (5) The proposal must include a letter Service that may stand to benefit fi- from an executive agency or agencies nancially from the Semipostal Stamp on agency letterhead representing Program; or that: (3) Members of the Citizens’ Stamp (i) It is an executive agency as de- Advisory Committee and their imme- fined in 5 U.S.C. 105, diate families, and contractors of the (ii) It is willing and able to imple- Postal Service, and their immediate ment the proposal, and families, who are involved in any deci- (iii) It is willing and able to meet the sion-making related to causes, recipi- requirements of the Semipostal Au- ent agencies, or artwork for the thorization Act, if it is selected. The Semipostal Stamp Program. letter must be signed by a duly author- (d) Consideration for evaluation will ized representative of the agency. not be given to proposals that request (6)(i) A proposal may designate one support for any of the following: Anni- or two recipient executive agencies to versaries; public works; people; specific receive funds, but if more than one ex- organizations or associations; commer- ecutive agency is proposed, the pro- cial enterprises or products; cities,

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towns, municipalities, counties, or sec- otherwise regularly apply, plus a dif- ondary schools; hospitals, libraries, or ferential of not less than 15 percent. similar institutions; religious institu- The price of a semipostal stamp shall tions; causes that do not further be an amount that is evenly divisible human welfare; or causes determined by five. For purposes of this provision, by the Postal Service or the Citizens’ the First-Class Mail® single-piece Stamp Advisory Committee to be in- stamped first-ounce rate of postage consistent with the spirit, intent, or will be considered the rate of postage history of the Semipostal Authoriza- that would otherwise regularly apply. tion Act. (b) The prices of semipostal stamps (e) Artwork and stamp designs may are determined by the Governors of the not be submitted with proposals. United States Postal Service in accordance with the requirements of 39 U.S.C. [81 FR 23163, Apr. 20, 2016] 416. § 551.5 Frequency and other limita- [81 FR 23164, Apr. 20, 2016] tions. (a) The Postal Service is authorized § 551.7 Calculation of funds for recipient executive agencies. to issue semipostal stamps for a 10- year period beginning on the date on (a) The Postal Service is to deter- which semipostal stamps are first sold mine its reasonable costs in executing to the public under 39 U.S.C. 416. The its responsibilities pursuant to the Office of Stamp Services will deter- Semipostal Authorization Act, as spec- mine the date of commencement of the ified in § 551.8. These costs are offset 10-year period. against the revenue received through (b) The Postal Service will offer only sale of each semipostal stamp in excess one discretionary semipostal stamp for of the First-Class Mail single-piece sale at any given time during the 10- first-ounce rate in effect at the time of year period, although a discretionary purchase. semipostal stamp may be offered for (b) Any reasonable costs offset by the sale at the same time as one or more Postal Service shall be retained by it, congressionally mandated semipostal along with revenue from the sale of the stamps. semipostal stamps, as recorded by sales (c) The sales period for any given dis- units through the use of a specially cretionary semipostal stamp is limited designated account. to no more than two years, as deter- (c) The Postal Service is to pay designated recipient executive agency(ies) mined by the Office of Stamp Services. the remainder of the differential rev- (d) Prior to or after the issuance of a enue less an amount to recover the rea- given discretionary semipostal stamp, sonable costs of the Postal Service, as the Postal Service may withdraw the determined under § 551.8. semipostal stamp from sale, or to re- (d) The amounts for recipient execu- duce the sales period, if, inter alia: tive agencies are transferred in a man- (1) Its sales or revenue statistics are ner and frequency determined by mu- lower than expected, tual agreement, consistent with the re- (2) The sales or revenue projections quirements of 39 U.S.C. 416. are lower than expected, or (3) The cause or recipient executive § 551.8 Cost offset policy. agency does not further, or does not comply with, the statutory purposes or (a) Postal Service policy is to recover requirements of the Semipostal Au- from the differential revenue for each thorization Act. semipostal stamp those costs that are determined to be attributable to the [81 FR 23164, Apr. 20, 2016] semipostal stamp and that would not normally be incurred for stamps having § 551.6 Pricing. similar sales; physical characteristics; (a) The Semipostal Authorization and marketing, promotional, and pub- Act, as amended by Public Law 107–67, lic relations activities (hereinafter section 652, 115 Stat. 514 (2001), pre- ‘‘comparable stamps’’). scribes that the price of a semipostal (b) Overall responsibility for track- stamp is the rate of postage that would ing costs associated with semipostal

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stamps will rest with the Office of Ac- (5) Other costs specific to the counting, Finance, Controller. Indi- semipostal stamp that would not nor- vidual organizational units incurring mally have been incurred for com- costs will provide supporting docu- parable stamps; and mentation to the Office of Accounting, (6) Costs in paragraph (g) of this sec- Finance, Controller. tion that materially exceed those that (c) For each semipostal stamp, the would normally have been incurred for Office of Stamp Services, in coordina- comparable stamps. tion with the Office of Accounting, Fi- (f) The Semipostal Stamp Program nance, Controller, shall, based on judg- incorporates the following provisions ment and available information, iden- that are intended to maximize differen- tify the comparable stamp(s) and cre- tial revenues available to the selected ate a profile of the typical cost charac- causes. These include, but are not lim- teristics of the comparable stamp(s) (e.g., manufacturing process, gum ited to, the following: type), thereby establishing a baseline (1) Avoiding, to the extent prac- for cost comparison purposes. The de- ticable, promotional costs that exceed termination of comparable stamps may those of comparable stamps; change during or after the sales period, (2) Establishing restrictions on the and different comparable stamp(s) may number of concurrently issued be used for specific cost comparisons. semipostal stamps; and (d) Except as specified, all costs asso- (3) Making financial and retail sys- ciated with semipostal stamps will be tem changes in conjunction with regu- tracked by the Office of Accounting, larly scheduled revisions. Finance, Controller. Costs that will not (g) Other costs attributable to be tracked include: semipostals but which would normally (1) Costs that the Postal Service de- be incurred for comparable stamps termines to be inconsequentially would be recovered through the post- small, which include those cost items age component of the semipostal stamp which are less than $3,000 per invoice price. Such costs are not recovered, un- and are not specifically charged to a less they materially exceed the costs of semipostal finance number. comparable stamps. These include, but (2) Costs for which the cost of track- are not limited to, the following: ing or estimation would be burdensome (e.g., costs for which the cost of track- (1) Costs of stamp design (including ing exceeds the cost to be tracked); market research); (3) Costs attributable to mail to (2) Costs of stamp production and which semipostal stamps are affixed printing; (which are attributable to the appro- (3) Costs of stamp shipping and dis- priate class and/or subclass of mail); tribution; and (4) Estimated training costs for field (4) Administrative and support costs staff, except for special training associ- that the Postal Service would have in- ated with semipostal stamps; curred whether or not the Semipostal (5) Costs of stamp sales (including Stamp Program had been established. employee salaries and benefits); (e) Cost items recoverable from the (6) Costs associated with the with- differential revenue include, but are drawal of the stamp issue from sale; not limited to, the following: (7) Costs associated with the destruc- (1) Packaging costs in excess of the tion of unsold stamps; and cost to package comparable stamps; (2) Printing costs of flyers and spe- (8) Costs associated with the incorpo- cial receipts; ration of semipostal stamp images into (3) Costs of changes to equipment; advertising for the Postal Service as an (4) Costs of developing and executing entity. marketing and promotional plans in [66 FR 31826, June 12, 2001, as amended at 67 excess of the cost for comparable FR 5216, Feb. 5, 2002; 69 FR 7689, Feb. 19, 2004; stamps; 70 FR 6765, Feb. 9, 2005]

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PART 601—PURCHASING OF sition of property (except real prop- PROPERTY AND SERVICES erty) and services. § 601.104 Postal purchasing authority. Sec. 601.100 Purchasing policy. Only the Postmaster General/CEO; 601.101 Effective date. the Postal Service’s vice president, 601.102 Revocation of prior purchasing regu- Supply Management; contracting offi- lations. cers with written statements of spe- 601.103 Applicability and coverage. cific authority; and others designated 601.104 Postal purchasing authority. in writing or listed in this part have 601.105 Business relationships. the authority to bind the Postal Serv- 601.106 Reserved. ice with respect to entering into, modi- 601.107 Initial disagreement resolution. fying, or terminating any contract re- 601.108 SDR Official disagreement resolu- garding the acquisition of property, tion. 601.109 Contract claims and disputes. services, and related purchasing mat- 601.110 Payment of claims. ters. The Postal Service’s vice presi- 601.111 Interest on claim amounts. dent, Supply Management, or his or 601.112 Review of adverse decisions. her designee, may also delegate in 601.113 Suspension, debarment, and ineligi- writing local buying authority bility. throughout the Postal Service. AUTHORITY: 39 U.S.C. 401, 404, 410, 411, 2008, 5001–5605. § 601.105 Business relationships. (a) General. A person or organization SOURCE: 72 FR 58252, Oct. 15, 2007, unless otherwise noted. wishing to have a continuing business relationship with the Postal Service in § 601.100 Purchasing policy. purchasing matters is expected to treat the Postal Service in the same manner The Postal Service acquires property as it would other valued customers of and services pursuant to the authority similar size and importance. The Post- of 39 U.S.C. 410. al Service reserves the right to decline § 601.101 Effective date. to accept or consider proposals from a person or organization when that per- These regulations are effective No- son or organization fails to meet rea- vember 14, 2007. Solicitations issued sonable business expectations or pro- and resulting contracts entered into vide a high level of confidence regard- prior to that date will be governed by ing quality, prompt service, and overall the regulations in effect at the time professionalism. the solicitation was issued. (b) Declining to accept or consider proposals. The Postal Service may decline § 601.102 Revocation of prior pur- to accept or consider proposals when a chasing regulations. person or organization exhibits unac- All previous postal purchasing regu- ceptable conduct or business practices lations, including the Postal Con- that do not meet reasonable business tracting Manual, Procurement Manual, expectations or does not provide a high the Purchasing Manual (Issues 1, 2 and level of confidence about the entity’s 3), and procurement handbooks, circu- current or future business relations. lars, and instructions, are revoked and Unacceptable conduct or business prac- are superseded by the regulations con- tices include, but are not limited to: tained in this part. (1) Marginal or dilatory contract performance; § 601.103 Applicability and coverage. (2) Failure to deliver on promises The regulations contained in this made in the course of dealings with the part apply to all Postal Service acqui- Postal Service;

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(3) Providing false or misleading in- nomic interests would be affected by formation regarding financial condi- the award of, or failure to award, the tion, ability to perform, or other mate- contract. rial matters, including any aspect of (4) Lodge. A disagreement is lodged performance on a contract; and on the date it is received by the con- (4) Engaging in other questionable or tracting officer or the Supplier Dis- unprofessional conduct or business agreement Resolution Official, as ap- practices. propriate. (c) Notice. If the Postal Service elects (5) SDR Official. The Supplier Dis- to decline to accept or consider pro- agreement Resolution Official, a con- posals from a person or organization, tracting officer designated by the Post- the vice president, Supply Manage- al Service to perform the functions es- ment, or his or her designee, will pro- tablished under § 601.108. vide a written notice to the person or (b) Policy. It is the policy of the Post- organization by Certified Mail, return real Service and in the interest of its ceipt requested, explaining: suppliers to resolve disagreements by (1) The reasons for the decision; mutual agreement between the sup- (2) The effective date of the decision; plier and the responsible contracting (3) The scope of the decision; officer. All disagreements must be (4) The period of time the decision lodged with the responsible contracting will be in effect, (a matter at the Post- office in writing via facsimile, e-mail, al Service’s discretion consistent with hand delivery, or U.S. Mail. For dis- the circumstances); and agreements that concern the award of (5) The supplier’s right to contest the a contract, the disagreement shall be decision. lodged within 10 days of the date the (d) Contesting Decisions. If a person or supplier received notification of award organization believes the decision not or 10 days from the date the supplier to accept or consider proposals is not received a debriefing, whichever is merited, it may contest the matter in later. For disagreements that concern accordance with § 601.108. The Postal alleged improprieties in a solicitation, Service may reconsider the matter and, the contracting officer must receive if warranted, rescind or modify the de- the disagreement before the time set cision to decline to accept or consider for the receipt of proposals, unless the proposals. disagreement concerns an alleged im- § 601.106 [Reserved] propriety that does not exist in the initial solicitation but which is subse- § 601.107 Initial disagreement resolu- quently incorporated into the solicitation. tion, in which event the contracting of- (a) Definitions. (1) Days. Calendar ficer must receive the disagreement no days; however, any time period will run later than the next closing time for the until a day that is not a Saturday, receipt of proposals following the in- Sunday, or legal holiday. corporation. The resolution period (2) Disagreements. All disputes, pro- shall last 10 days from the date when tests, claims, disagreements, or de- the disagreement is lodged with the mands of whatsoever nature arising in contracting officer. During the sup- connection with the acquisition of plier-contracting officer 10-day resolu- property and services within the scope tion period, the responsible contracting of § 601.103 of this chapter, except those: officer’s management may help to re- (i) That arise pursuant to a contract solve the disagreement. At the conclu- under the Contract Disputes Act under sion of the 10-day resolution period, the § 601.109; contracting officer must communicate, (ii) That concern debarment, suspen- in writing, to the supplier his or her sion, or ineligibility under § 601.113; or resolution of the disagreement. (iii) That arise out of the nonrenewal (c) Alternative dispute resolution. Al- of transportation contracts containing ternative dispute resolution (ADR) pro- other provisions for the review of such cedures may be used to resolve a dis- decisions. agreement. If the use of ADR is agreed (3) Interested parties. Actual or pro- upon, the 10-day limitation is sus- spective offerors whose direct eco- pended. If agreement cannot be

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reached, the supplier has 10 days to SDR Official is: Supply Management, lodge its disagreement with the SDR Room 1141 (Attn: SDR Official), United Official. States Postal Service Headquarters, 475 [75 FR 1542, Jan. 12, 2010] L’Enfant Plaza SW., Washington, DC 20260–1141; email Address: § 601.108 SDR Official disagreement [email protected]; Fax Number: resolution. (202) 268–0075. (a) General. If a disagreement under (d) Lodging timeframes. Disagreements § 601.107 is not resolved within 10 days under § 601.107 or contests of decisions after it was lodged with the con- under § 601.105 must be lodged with the tracting officer, if the use of ADR fails SDR Official within the following time- to resolve it at any time, if the sup- frames: plier is not satisfied with the con- (1) Disagreements under § 601.107 not tracting officer’s resolution of the dis- resolved with the contracting officer agreement, or if the decision not to ac- must be lodged with the SDR Official cept or consider proposals under within 20 days after they were lodged § 601.105 is contested, the SDR Official with the contracting officer (unless is available to provide final resolution ADR had been used to attempt to re- of the matter. The Postal Service de- solve them); sires to resolve all such matters quick- (2) Disagreements under § 601.107 for ly and inexpensively in keeping with which ADR had been agreed to be used the regulations in this part. must be lodged with the SDR Official (b) Scope and applicability. This proce- within 10 days after the supplier knew dure is established as the sole and ex- or was informed by the contracting of- clusive means to resolve disagreements ficer or otherwise that the matter was under § 601.107 and contests of decisions not resolved; under § 601.105. This procedure is in- (3) Where a supplier is dissatisfied tended to expeditiously resolve dis- with the contracting officer’s resolu- agreements that are not resolved at tion of a disagreement under § 601.107, the responsible contracting officer level; to reduce litigation expenses, in- the supplier must lodge the disagree- convenience, and other costs for all ment with the SDR Official within 10 parties; to facilitate successful busi- days after the supplier first receives ness relationships with Postal Service notification of the contracting officer’s suppliers, the supplier community, and resolution; and other persons; and to develop further (4) Contests of decisions under the basis for the Postal Service’s pur- § 601.105 to decline to accept or consider chasing decisions and the administra- proposals must be lodged with the SDR tive records concerning those deci- Official within 10 days of the supplier’s sions. All disagreements under § 601.107 receipt of the written notice explaining and contests of decisions under § 601.105 the decision. will be lodged with and resolved, with (5) The SDR Official may grant an ex- finality, by the SDR Official under and tension of time to lodge a disagree- in accordance with the sole and exclu- ment under § 601.107 or contest of deci- sive procedure established in this sec- sion under § 601.105 or to provide sup- tion. porting information when warranted. (c) Lodging. The disagreement under Any request for an extension must set § 601.107 or contest of decision under forth the reasons for the request, be § 601.105 must be lodged with the SDR made in writing, and be delivered to Official in writing via facsimile, email, the SDR Official on or before the time hand delivery, or U.S. Mail. The dis- to lodge a disagreement lapses. agreement under § 601.107 or contest of (e) Disagreement decision process. The decision under § 601.105 must state the SDR Official will promptly provide a factual circumstances relating to it copy of a disagreement to the con- and the remedy sought. A disagree- tracting officer, who will promptly no- ment under § 601.107 must also state the tify other interested parties. The SDR scope and outcome of the initial dis- Official will consider a disagreement agreement resolution attempt with the and any response by other interested contracting officer. The address of the parties and appropriate Postal Service

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officials within a time frame estab- requested information may be taken lished by the SDR Official. The SDR into account by the SDR Official in the Official may also meet individually or decision. jointly with the person or organization (g) Final resolution by the SDR Official lodging the disagreement, other inter- and final contract award of the Postal ested parties, and/or Postal Service of- Service. A resolution by the SDR Offi- ficials, and may undertake other ac- cial will be final and binding. If the tivities in order to obtain materials, SDR Official’s final resolution affirms information, or advice that may help the original contract award of the con- to resolve the disagreement. The per- tracting officer, the contracting offi- son or organization lodging the dis- cer’s original contract award becomes agreement, other interested parties, or the Postal Service’s final contract Postal Service officials must promptly provide all relevant, nonprivileged ma- award, and may be subject to judicial terials and other information requested review as described in paragraph (h) of by the SDR Official. If a submission this section. If the SDR Official’s final contains trade secrets or other con- resolution directs that the Postal Serv- fidential information, it should be ac- ice terminate the contract award and companied by a copy of the submission issue a new solicitation, recompete the from which the confidential matter has requirement, or reevaluate the current been redacted. The SDR Official will award, the contracting officer shall im- determine whether any redactions are plement promptly the SDR Official’s appropriate and will be solely respon- final resolution. However, any contract sible for determining the treatment of award made by the contracting officer any redacted materials. After obtain- after a resolicitation, recompetition, ing such information, materials, and or reevaluation directed by the SDR advice as may be needed, the SDR Offi- Official is not a final contract award of cial will promptly issue a written deci- the Postal Service that may be subject sion resolving the disagreement and to judicial review unless and until dis- will deliver the decision to the person agreements concerning that contract or organization lodging the disagree- award have been lodged and resolved ment, other interested parties, and ap- with finality by the SDR Official. propriate Postal Service officials. (h) Judicial review. The Postal Serv- When resolving a disagreement raised ice’s final contract award, as described under § 601.107, the SDR Official may in paragraph § 601.108(g), may be ap- grant remedies including, but not limited to, the following: pealed to a Federal court with jurisdic- (1) Directing the contracting officer tion based only upon an alleged viola- to revise the solicitation or to issue a tion of the regulations contained in new solicitation; this part or an applicable public law (2) Directing the contracting officer enacted by Congress. The party lodging to recompete the requirement; the disagreement may seek review of (3) Directing the contracting officer the Postal Service’s final contract to reevaluate the award on the basis of award only after the mandatory admin- current proposals and the evaluation istrative remedies provided under factors contained in the solicitation; § 601.107 and § 601.108 have been ex- and hausted. (4) Directing the contracting officer (i) Resolution timeframe. It is intended to terminate the contract or to refrain that this procedure generally will re- from exercising options under the con- solve disagreements under § 601.107 or tract. contests of decisions under § 601.105 (f) Guidance. The SDR Official will be within approximately 30 days after re- guided by the regulations contained in ceipt by the SDR Official. The time this part and all applicable public laws may be shortened or lengthened de- enacted by Congress. Non-Postal Serv- pending on the complexity of the issues ice procurement rules or regulations and other relevant considerations. and revoked Postal Service regulations will not apply or be taken into ac- [75 FR 1542, Jan. 12, 2010, as amended at 79 count. Failure of any party to provide FR 65343, Nov. 4, 2014]

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§ 601.109 Contract claims and disputes. tributable to either misrepresentation (a) General. This section implements of fact or fraud on the supplier’s part, the Contract Disputes Act of 1978, as the contracting officer must deny that amended (41 U.S.C. 7101–7109). If ADR is part of the claim and refer the matter used, the SDR official may serve as a to the Office of Inspector General. mediator for contract performance dis- (g) Decision and appeal—(1) Con- agreements prior to bringing a contracting officer’s authority. A contract claim or dispute under this part. tracting officer is authorized to decide (b) Policy. It is the Postal Service’s or settle all claims arising under or re- intent to resolve contractual claims lating to a contract subject to the Con- and disputes by mutual agreement at tract Disputes Act, except for: the level of an authorized contracting (i) Claims or disputes for penalties or officer whenever possible. In addition, forfeitures prescribed by statutes or the Postal Service supports and en- regulation that a Federal agency ad- courages the use of alternative dispute ministers; or resolution as an effective way to under- (ii) Claims involving fraud. stand, address, and resolve conflicts (2) Contracting officer’s decision. The with suppliers. Efforts to resolve dif- contracting officer must review the ferences should be made before the facts pertinent to the claim, and may issuance of a final decision on a claim, obtain assistance from assigned coun- and even when the supplier does not sel and other advisors, and issue a final agree to use ADR, the contracting offi- decision in writing. The decision must cer should consider holding informal include a description of the claim or discussions between the parties in dispute with references to the perti- order to resolve the conflict before the nent contract provisions, a statement issuance of a final decision. of the factual areas of agreement and (c) Supplier claim initiation. Supplier disagreement, and a statement of the claims must be submitted in writing to contracting officer’s decision with sup- the contracting officer for final deci- porting rationale. sion. The contracting officer must doc- (3) Insufficient information. When the ument the contract file with evidence contracting officer cannot issue a deci- of the date of receipt of any submission sion because the supplier has not pro- that the contracting officer determines vided sufficient information, the con- is a claim. Supplier claims must be tracting officer may request the re- submitted within 6 years after accrual quired information. Further failure to of a claim unless the parties agreed to provide the requested information is an a shorter time period. The 6-year time adequate reason to deny the claim. period does not apply to contracts (4) Furnishing Decisions. The con- awarded prior to October 1, 1995. tracting officer must furnish a copy of (d) Postal Service claim initiation. The the decision to the supplier by Cer- contracting officer must issue a writ- tified Mail TM, return receipt re- ten decision on any Postal Service quested, or by any other method that claim against a supplier, within six provides evidence of receipt. years after accrual of a claim, unless (5) Decisions on claims for $100,000 or the parties agreed in writing to a less. If the supplier has asked for a deci- shorter time period. The 6-year time sion within sixty days, the contracting period does not apply to contracts officer must issue a final decision on a awarded prior to October 1, 1995, or to claim of $100,000 or less within sixty a Postal Service claim based on a sup- calendar days of its receipt. The supplier claim involving fraud. plier may consider the contracting offi- (e) Certified claims. Each supplier cer’s failure to issue a decision within claim exceeding $100,000 must be ac- the applicable time period as a denial companied by a certification in accord- of its claim, and may file a suit or ap- ance with the supplier’s contract. peal on the claim. (f) Misrepresentation or fraud. When (6) Decisions on certified claims. For the contracting officer determines that certified claims over $100,000, the con- the supplier is unable to support any tracting officer must either issue a part of the claim and there is evidence final decision within sixty days of their or reason to believe the inability is at- receipt or notify the supplier within

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the 60-day period of the time when a tracting officer must add the following decision will be issued. The time period to the paragraph: ‘‘In taking an appeal established must be reasonable, taking to the Board of Contract Appeals, you into account the size and complexity of may include in your notice of appeal an the claim, the adequacy of the sup- election to proceed under the Board’s plier’s supporting data, and any other accelerated procedure, which provides relevant factors. for a decision within approximately 180 (7) Wording of decisions. The con- days. If you do not make an election in tracting officer’s final decision must the notice of appeal, you may do so by contain the following paragraph: ‘‘This written notice anytime thereafter.’’ is the final decision of the contracting (10) Information and resources. Con- officer pursuant to the Contract Dis- tracting officers must have sufficient putes Act of 1978 and the clause of your information available at the time a contract entitled Claims and Disputes. final decision is issued on a claim so You may appeal this decision to the resolution of an appeal within the pe- Postal Service Board of Contract Ap- riod set for an expedited disposition peals by filing a notice of appeal within will not be delayed. Once an appeal is ninety days from the date you receive docketed, and expedited disposition is this decision. You may file the notice elected, contracting officers must de- of appeal online through the USPS Ju- vote sufficient resources to the appeal dicial Officer Department’s Electronic to ensure the schedule for resolution is Filing System Web site located at met. Nothing in this part precludes an https://uspsjoe.justware.com/JusticeWeb, effort by the parties to settle a con- or by mailing or otherwise furnishing the notice of appeal to the Postal Serv- troversy after an appeal has been filed, ice Board of Contract Appeals. You although such efforts to settle the con- also may appeal by mailing, or other- troversy will not suspend processing wise furnishing written notice of ap- the appeal, unless the Board of Con- peal to the contracting officer within tract Appeals so directs. ninety days from the date you receive [72 FR 58252, Oct. 15, 2007, as amended at 80 this decision. The notice should iden- FR 31844, June 4, 2015; 81 FR 29146, May 11, tify the contract by number, reference 2016] this decision, and indicate that an appeal is intended. Alternatively, you § 601.110 Payment of claims. may bring an action directly in the Any claim amount determined in a United States Court of Federal Claims final decision to be payable, less any within twelve months from the date portion previously paid, should be you receive this decision.’’ promptly paid to the supplier without (8) Additional wording for decisions of prejudice to either party in the event $50,000 or less. When the claim or claims of appeal or action on the claim. In the denied total $50,000 or less, the con- absence of appeal by the Postal Serv- tracting officer must add the following ice, a board or court decision favorable to the paragraph: ‘‘In taking an appeal in whole or in part to the supplier must to the Board of Contract Appeals, you be implemented promptly. In cases may include in your notice of appeal an when only the question of entitlement election to proceed under the Board’s has been decided and the matter of small claims (expedited) procedure, which provides for a decision within amount has been remanded to the par- approximately 120 days, or an election ties for negotiation, a final decision of to proceed under the Board’s acceler- the contracting officer must be issued ated procedure, which provides for a if agreement is not reached promptly. decision within approximately 180 days. If you do not make an election in § 601.111 Interest on claim amounts. the notice of appeal, you may do so by Interest on the amount found due on written notice anytime thereafter.’’ the supplier’s claim must be paid from (9) Additional wording for decisions the date the contracting officer re- over $50,000 up to $100,000. When the ceived the claim (properly certified, if claim or claims denied total $100,000 or required) or from the date payment less, but more than $50,000, the con- would otherwise be due, if that date is

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later, until the date of payment. Sim- (4) Indictment. Indictment for a crimi- ple interest will be paid at the rate es- nal offense. An information or other tablished by the Secretary of the filing by competent authority charging Treasury for each 6-month period in a criminal offense is given the same ef- which the claim is pending. Informa- fect as an indictment. tion on the rate at which interest is (5) Ineligible. An exclusion from con- payable is announced periodically in tracting and subcontracting by an enti- the Postal Bulletin. ty other than the Postal Service under statutes, executive orders, or regula- § 601.112 Review of adverse decisions. tions, such as the Davis-Bacon Act, the Any party may seek review of an ad- Service Contract Act, the Equal Em- verse decision of the Board of Contract ployment Opportunity Acts, the Walsh- Appeals in the Court of Appeals for the Healy Public Contracts Act, or the En- Federal Circuit or in any other appro- vironmental Protection Acts and re- priate forum. lated regulations or executive orders, to which the Postal Service is subject § 601.113 Suspension, debarment, and or has adopted as a matter of policy. ineligibility. (6) Suspension. An exclusion from (a) General. Except as provided other- contracting and subcontracting for a wise in this part, contracting officers reasonable period of time due to speci- may not solicit proposals from, award fied reasons or the pendency of a debar- contracts to, or, when a contract pro- ment proceeding. vides for such consent, consent to sub- (7) Supplier. For the purposes of this contracts with suspended, debarred, or part, a supplier is any individual, per- ineligible suppliers. son, or other legal entity that: (b) Definitions.—(1) Affiliate. A busi- (i) Directly or indirectly (e.g., ness, organization, person, or indi- through an affiliate) submits offers for, vidual connected by the fact that one is awarded, or reasonably may be ex- controls or has the power to control pected to submit offers for or be award- the other or by the fact that a third ed, a Postal Service contract, including party controls or has the power to con- a contract for carriage under Postal trol both. Indications of control in- Service or commercial bills of lading, clude, but are not limited to, inter- or a subcontract under a Postal Service locking management or ownership, contract; or identity of interests among family (ii) Conducts business or reasonably members, shared facilities and equip- may be expected to conduct business ment, contractual relationships, com- with the Postal Service as a subcon- mon use of employees, or a business entity organized following the suspen- tractor, an agent, or as a representa- sion, debarment, or proposed debar- tive of another supplier. ment of a supplier which has the same (c) Suspension, debarment, and ineli- or similar management, ownership, or gible list. (1) The Postal Service uses principal employees as the supplier the General Services Administration’s that was suspended, debarred, or pro- System for Award Management (SAM) posed for debarment. Franchise agree- to determine if suppliers are suspended, ments are not conclusive evidence of debarred, or proposed for debarment. affiliation if the franchisee has a right (2) SAM maintains a consolidated to profit in proportion to its ownership database of all persons and entities and bears the risk of loss or failure. suspended, debarred, proposed for de- (2) Debarment. An exclusion from con- barment, or declared ineligible by Fed- tracting and subcontracting for a rea- eral agencies or the Government Ac- sonable, specified period of time com- countability Office. SAM is accessible mensurate with the seriousness of the by the public on GSA’s Web site at offense, failure, or inadequacy of per- https://www.sam.gov. formance. (3) Through a representative, the vice (3) General Counsel. This includes the president, Supply Management will use General Counsel’s authorized rep- the SAM Exclusions database to report resentative. Postal Service suspensions, debarments

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and proposed debarment decisions; in- (i) If the supplier commits, is including changes in the status of sup- dicted for, or is convicted of fraud or a pliers and any of their affiliates. In- criminal offense incidental to obtain- quiries concerning listed suppliers ing, attempting to obtain, or per- should be directed to the agency or forming a government contract, vio- other authority that took the action. lates a Federal antitrust statute aris- (d) Treatment of suppliers included in ing out of the submission of bids and the SAM Exclusions database. (1) Con- proposals, or commits or engages in tracting officers will review the SAM embezzlement, theft, forgery, bribery, Exclusions database before making a falsification or destruction of records, contract award. or receipt of stolen property, or any (2) Suppliers included in the SAM Ex- other offense indicating a lack of busi- clusions database are excluded from re- ness integrity or business honesty; ceiving contracts and subcontracts, (ii) For any other cause of such seri- and contracting officers may not so- ous and compelling nature that suspen- licit proposals or quotations from, sion is warranted; or award contracts to, or, when a contract (iii) If the Postal Service has notified provides for such consent, consent to a supplier of its proposed debarment subcontracts with such suppliers, un- under this part. less the vice president, Supply Manage- (f) Period of suspension. A suspension ment, or his or her designee, after con- will not exceed one year in duration, sultation with the General Counsel, except a suspension may be extended has approved such action. for reasonable periods of time beyond (3) Suppliers included in the SAM Ex- one year by the vice president, Supply clusions database may not provide Management. The termination of a sus- goods or services to other persons or pension will not prejudice the Postal entities for resale, in whole or part, to Service’s position in any debarment the Postal Service and such other per- proceeding. A suspension will be super- sons or entities are obligated to review seded by a decision rendered by the the consolidated GSA list in order to vice president, Supply Management, exclude suppliers suspended or under paragraph (k)(5) of this section. debarred by the Postal Service from (g) Procedural requirements for suspen- performing any part of a Postal Service sion. (1) The vice president, Supply contract. Management will notify a supplier of a (4) The suspension, debarment, or in- suspension or an extension of a suspen- eligibility of a supplier does not, of sion and the reason(s) for the suspen- itself, affect the rights and obligations sion or extension in writing sent to the of the parties to any valid, pre-existing supplier by Certified Mail, return re- contract. The Postal Service may ter- ceipt requested, within ten days after minate for default a contract with a the effective date of the suspension or supplier that is suspended, debarred, or extension. A copy of the notice will be determined to be ineligible. Con- furnished to the Office of the Inspector tracting officers may not add new work General. to any contract with a supplier that is (2) The notice will state the cause(s) suspended, debarred, or determined to for the suspension or extension. be ineligible by supplemental agree- (3) Within thirty days of notice of ment, by exercise of an option, or oth- suspension or an extension, a supplier erwise (unless the work is classified as may submit to the vice president, Sup- an insignificant or significant minor ply Management, in writing, any infor- service change to a mail transportation mation or reason(s) the supplier be- contract), except with the approval of lieves makes a suspension or an exten- the vice president, Supply Manage- sion inappropriate, and the vice presi- ment, or designee after consultation dent, Supply Management, in consulta- with the General Counsel. tion with the General Counsel, will (e) Causes for suspension. (1) The vice consider the supplier’s submission, and, president, Supply Management, may in their discretion, may revoke a sus- suspend any supplier, including any of pension or an extension of a suspen- its affiliates, for causes such as the fol- sion. If a suspension or extension is re- lowing: voked, the revocation will be in writing

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and a copy of the revocation will be unless another cause or another basis sent to the supplier by Certified Mail, for debarment exists. return receipt requested. A copy of the (3) The existence of any of the other revocation will be furnished to the Of- causes in paragraphs (h)(1)(iii), (iv), (v), fice of the Inspector General. or (vi) of this section can be estab- (h) Causes for debarment. (1) The vice lished by a preponderance of the evi- president, Supply Management, with dence, either direct or indirect, in the the concurrence of the General Coun- judgment of the vice president of Sup- sel, may debar a supplier, including its ply Management. affiliates, for cause such as the fol- (4) The criminal, fraudulent, or im- lowing: proper conduct of an individual may be (i) Conviction of a criminal offense imputed to the firm with which he or incidental to obtaining or attempting she is or has been connected when an to obtain contracts or subcontracts, or impropriety was committed. Likewise, in the performance of a contract or subcontract. when a firm is involved in criminal, (ii) Conviction under a Federal anti- fraudulent, or other improper conduct, trust statute arising out of the submis- any person who participated in, knew sion of bids or proposals. of, or had reason to know of the impro- (iii) Commission of embezzlement, priety may be debarred. theft, forgery, bribery, falsification or (5) The criminal, fraudulent, or other destruction of records, making false improper conduct of one supplier par- statements, tax evasion, or receiving ticipating in a joint venture or similar stolen property. arrangement may be imputed to other (iv) Violation of a Postal Service participating suppliers if the conduct contract so serious as to justify debar- occurred for or on behalf of the joint ment, such as willful failure to perform venture or similar arrangement, or a Postal Service contract in accord- with the knowledge, approval, or acqui- ance with the specifications or within escence of the supplier. Acceptance of the time limit(s) provided in the con- the benefits derived from the conduct tract; a record of failure to perform or will be evidence of such knowledge, ap- of unsatisfactory performance in ac- proval, or acquiescence. cordance with the terms of one or more (i) Mitigating factors. (1) The existence Postal Service contracts occurring of any cause for debarment does not within a reasonable period of time pre- necessarily require that a supplier be ceding the determination to debar (ex- debarred. The decision to debar is with- cept that failure to perform or unsatis- in the discretion of the vice president, factory performance caused by acts be- Supply Management, with the concur- yond the control of the supplier may rence of the General Counsel, and must not be considered a basis for debar- be made in the best interest of the ment); violation of a contractual provi- Postal Service. The following factors sion against contingent fees; or accept- may be assessed in determining the se- ance of a contingent fee paid in viola- riousness of the offense, failure, or in- tion of a contractual provision against contingent fees. adequacy of performance, and may be (v) Any other offense indicating a taken into account in deciding whether lack of business integrity or business debarment is warranted: honesty. (i) Whether the supplier had estab- (vi) Any other cause of a serious and lished written standards of conduct and compelling nature that debarment is had published internal control systems warranted. at the time of the activity that con- (2) The existence of a conviction in stitutes cause for debarment or had paragraph (h)(1)(i) or (ii) of this section adopted such procedures prior to any can be established by proof of a convic- Postal Service investigation of the action in a court of competent jurisdic- tivity cited as a cause for debarment. tion. If an appeal taken from such con- (ii) Whether the supplier brought the viction results in a reversal of the con- activity cited as a cause for debarment viction, the debarment may be re- to the attention of the Postal Service moved upon the request of the supplier, in a prompt, timely manner.

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(iii) Whether the supplier promptly should not exceed three years. When and fully investigated the cir- debarment for an additional period is cumstances involving debarment and, deemed necessary, notice of the pro- if so, made the full results of the inves- posed additional period of debarment tigation available to appropriate offi- must be furnished to the supplier as in cials of the Postal Service. the case of original debarment. (iv) Whether the supplier cooperated (2) Except as precluded by an applica- fully with the Postal Service during its ble statute, executive order, or control- investigation into the matter. ling regulation of another agency, de- (v) Whether the supplier paid or barment may be removed or the period agreed to pay all criminal, civil and ad- may be reduced by the vice president, ministrative liability, and other costs Supply Management when requested by arising out of the improper activity, including any investigative or adminis- the debarred supplier and when the re- trative costs incurred by the Postal quest is supported by a reasonable jus- Service, and made or agreed to make tification, such as newly discovered full restitution. material evidence, reversal of a convic- (vi) Whether the supplier took appro- tion, bona fide change of ownership or priate disciplinary action against the management, or the elimination of the individual(s) responsible for the activ- causes for which debarment was im- ity that could cause debarment. posed. The vice president, Supply Man- (vii) Whether the supplier imple- agement may, at his or her discretion, mented and/or agreed to implement re- deny any request or refer it to the Ju- medial measures, including those iden- dicial Officer for a hearing and for find- tified by the Postal Service. ings of fact, which the vice president, (viii) Whether the supplier instituted Supply Management will consider when and/or agreed to institute new and/or deciding the matter. When a debarment revised review and control procedures is removed or the debarment period is and ethics programs. reduced, the vice president, Supply (ix) Whether the supplier had ade- Management must state in writing the quate time to eliminate circumstances reason(s) for the removal of the debar- within the supplier’s organization that ment or the reduction of the period of could lead to debarment. debarment. (x) Whether the supplier’s senior offi- (k) Procedural requirements for debar- cers and mid-level management recog- (1) After securing the concur- nize and understand the seriousness of ment. the misconduct giving rise to debar- rence of the General Counsel, the vice ment. president, Supply Management will ini- (2) The existence or nonexistence of tiate a debarment proceeding by send- mitigating factors or remedial meas- ing the supplier a written notice of pro- ures such as those above is not deter- posed debarment. The notice will be minative whether or not a supplier served by sending it to the last known should be debarred. If a cause for de- address of the supplier by Certified barment exists, the supplier has the Mail, return receipt requested. A copy burden of demonstrating, to the satis- of the notice will be furnished to the faction of the vice president, Supply Office of Inspector General. The notice Management that debarment is not will state that debarment is being con- warranted or necessary. sidered; the reason(s) for the proposed (j) Period of debarment. (1) When an debarment; the anticipated period of applicable statute, executive order, or debarment and the proposed effective controlling regulation of other agen- date; and that, within thirty days of cies provides a specific period of debar- the notice, the supplier, individually or ment, that period applies. In other through a representative, may submit cases, debarment by the Postal Service in person or in writing information and should be for a reasonable, definite, argument in opposition to the proposed stated period of time, commensurate debarment. In the event a supplier does with the seriousness of the offense or not submit information or argument in the failure or inadequacy of perform- opposition to the proposed debarment ance. Generally, a period of debarment

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to the vice president, Supply Manage- AUTHORITY: 39 U.S.C. 401(5). ment within the time allowed, the de- SOURCE: 43 FR 42250, Sept. 20, 1978, unless barment will become final with no fur- otherwise noted. ther review or appeal. (2) If the proposed debarment is based § 602.1 General principles. on a conviction or civil judgment, the vice president, Supply Management, It is the policy of the Postal Service with the concurrence of the General to secure full ownership rights for its Counsel, may decide whether debar- intellectual properties other than pat- ment is merited based on the convic- ents (hereinafter, intellectual prop- tion or judgment, including any infor- erties) having significant economic or mation received from the supplier. If other business value, except when to do the debarment is based on other cir- so would be contrary to the best inter- cumstances or if there are questions re- est of the Postal Service. Intellectual garding material facts, the vice presi- property rights shall be acquired and dent, Supply Management may seek managed so as to: additional information from the sup- (a) Promote the economic, oper- plier and/or other persons, and may reational, and competitive well-being of quest the Judicial Officer to hold a the Postal Service; fact-finding hearing on such matters. (b) Limit restrictions on the use of The hearing will be governed by rules Postal Service intellectual property to of procedure promulgated by the Judi- a minimum consistent with its statu- cial Officer. The vice president, Supply tory obligations; Management may reject any findings (c) Assure that all potential users are of fact, in whole or in part, when they treated fairly; are clearly erroneous. (d) Give due regard to other relevant (3) Questions of fact to be resolved by considerations. a hearing before the Judicial Officer will be based on the preponderance of § 602.2 Office of Licensing, Philatelic the evidence. and Retail Services Department. (4) After consideration of the cir- In accordance with the foregoing pol- cumstances and any information and icy, the Postal Service Office of Licens- argument submitted by the supplier, ing, Philatelic and Retail Services De- the vice president, Supply Manage- partment, formulates the program for ment, with the concurrence of the Gen- the management of the Postal Serv- eral Counsel, will issue a written deci- ice’s rights in intellectual property sion regarding whether the supplier is (except patents and technical data debarred, and, if so, for the period of rights in Postal Service contracts, debarment. The decision will be mailed which is the responsibility of Postal to the supplier by Certified Mail, re- Service contracting officers). The Of- turn receipt requested. A copy of the fice of Licensing and the contracting decision will be furnished to the Office officers identify intellectual properties of the Inspector General. The decision in which the Postal Service should se- will be final and binding, unless the de- cure its rights. It receives and makes cision was procured by fraud or other recommendations for the disposition of criminal misconduct, or the decision applications for use of Postal Service was obtained in violation of the regula- intellectual property. It periodically tions contained in this part or an appli- reviews the intellectual property rights cable public law enacted by Congress. portfolio to determine the extent of the [79 FR 65343, Nov. 4, 2014] utilization of protected properties and to recommend relinquishment of own- PART 602—INTELLECTUAL PROPERTY ership when it considers ownership no longer desirable. It is advised by the RIGHTS OTHER THAN PATENTS Office of Procurement of performance under license agreements and makes Sec. 602.1 General principles. recommendations for corrective meas- 602.2 Office of Licensing, Philatelic and Re- ures when necessary. In consultation tail Services Department. with the Law Department, it rec- 602.3 Requests for use. ommends appropriate action against

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unauthorized use of intellectual prop- sidered are forwarded to the Office of erty. Licensing for approval. (c) Approved requests contemplating [56 FR 58859, Nov. 22, 1991] a permissive (no fee) use of the intellectual property are evidenced by a let- § 602.3 Requests for use. ter of permission furnished to the re- (a) Inquiries concerning licenses to quester. use Postal Service trademarks or serv- (d) Approved requests contemplating ice marks, copyright materials and in- a contractual (fee) use of the intellec- tellectual property other than patents tual property are forwarded to the Of- and technical data rights in Postal fice of Licensing for the negotiation of Service contracts must be sent to: Of- a satisfactory license agreement. fice of Licensing, Philatelic and Retail (e) Each license agreement is subject Services Department, US Postal Serv- to legal review. ice, 475 L’Enfant Plaza SW., Wash- (f) Requesters are promptly advised ington, DC 20260–6700. of unapproved requests. (b) Requests for the use of intellec- A transmittal letter effecting the tual property should be submitted on above changes to the Domestic Mail the form provided by the Office of Li- Manual will be published and trans- censing to the licensing advisor des- mitted automatically to subscribers. ignated by that Office. Each request is Notice of issuance of the transmittal considered in a timely fashion in ac- letter will be published in the FEDERAL cordance with the policy established in REGISTER as provided by 39 CFR 111.3. this section. Requests favorably con- [56 FR 58859, Nov. 22, 1991]

SUBCHAPTER I [RESERVED]

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PART 760—APPLICABILITY OF ties in book-entry form) as fiscal agent TREASURY DEPARTMENT REGULA- of the United States acting on behalf of TIONS the Postal Service and when indicated acting in its individual capacity. § 760.1 Treasury Department regula- (b) Postal Service security means any tions; applicability to Postal Serv- obligation of the Postal Service issued ice. under 39 U.S.C. 2005, in the form of a The provisions of Treasury Depart- definitive Postal Service security or a ment Circular No. 300, 31 CFR part 306 book-entry Postal Service security. (other than subpart O), as amended (c) Definitive Postal Service security from time to time, shall apply insofar means a Postal Service security in en- as appropriate to obligations of the graved or printed form. U.S. Postal Service to the extent they (d) Book-entry Postal Service security are consistent with the Trust Inden- means a Postal Service security in the ture of the Postal Service and the form of an entry made as prescribed in agreement between the Postal Service these regulations on the records of a and the Federal Reserve Bank of New Reserve Bank. York acting as Fiscal Agent of the (e) Pledge includes a pledge of, or any United States on behalf of the Postal other security interest in, Postal Serv- Service. Definitions and terms used in ice securities as collateral for loans or Treasury Department Circular 300 advances or to secure deposits of public should be read as though modified to moneys or the performance of an obli- effectuate the application of the regu- gation. lations to the U.S. Postal Service. (f) Date of call is the date fixed in the (39 U.S.C. Secs. 401, 402, 2005) authorizing resolution of the Board of [37 FR 211, Jan. 7, 1972] Governors of the Postal Service on which the obligor will make payment of the security before maturity in ac- PART 761—BOOK-ENTRY cordance with its terms. PROCEDURES (g) Member bank means any national bank, State bank, or bank or trust Sec. 761.1 Definition of terms. company which is a member of a Re- 761.2 Authority of Reserve Banks. serve bank. 761.3 Scope and effect of book-entry procedure. § 761.2 Authority of Reserve Banks. 761.4 Transfer or pledge. 761.5 Withdrawal of Postal Service securi- Each Reserve Bank is hereby author- ties. ized, in accordance with the provisions 761.6 Delivery of Postal Service securities. of this part, to (a) issue book-entry 761.7 Registered bonds and notes. Postal Service securities by means of 761.8 Servicing book-entry Postal Service entries on its records which shall in- securities; payment of interest, payment clude the name of the depositor, the at maturity or upon call. amount, the loan title (or series) and AUTHORITY: 39 U.S.C. 401, 402, 2005. maturity date; (b) effect conversions SOURCE: 37 FR 16801, Aug. 19, 1972, unless between book-entry Postal Service se- otherwise noted. curities and definitive Postal Service securities; (c) otherwise service and § 761.1 Definition of terms. maintain book-entry Postal Service se- In this part, unless the context oth- curities; and (d) issue a confirmation of erwise requires or indicates: transaction in the form of a written ad- (a) Reserve Bank means the Federal vice (serially numbered or otherwise) Reserve Bank of New York (and any which specifies the amount and de- other Federal Reserve Bank which scription of any securities; that is, loan agrees to issue Postal Service securi- title (or series) and maturity date, sold

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or transferred, and the date of the both as revised and amended, and may transaction. apply the book-entry procedure, with the approval of the Secretary of the § 761.3 Scope and effect of book-entry Treasury, to any other Postal Service procedure. securities deposited with a Reserve (a) A Reserve Bank as fiscal agent of Bank as fiscal agent of the United the United States acting on behalf of States. the Postal Service may apply the book- (c) Any person having an interest in entry procedure provided for in this Postal Service securities which are depart to any Postal Service securities posited with a Reserve Bank (in either which have been or are hereafter deposits individual capacity or as fiscal ited for any purpose in accounts with it agent of the United States) for any in its individual capacity under terms purpose shall be deemed to have con- and conditions which indicate that the sented to their conversion to book- Reserve Bank will continue to main- entry Postal Service securities pursu- tain such deposit accounts in its indi- ant to the provisions of this part, and vidual capacity, notwithstanding appli- in the manner and under the proce- cation of the book-entry procedure to dures prescribed by the Reserve Bank. such securities. This paragraph is ap- (d) No deposits shall be accepted plicable, but not limited, to securities under this section on or after the date deposited: of maturity or call of the securities. (1) As collateral pledged to a Reserve Bank (in its individual capacity) for § 761.4 Transfer or pledge. advances by it; (a) A transfer or pledge of book-entry (2) By a member bank for its sole ac- Postal Service securities to a Reserve count; bank (in its individual capacity or as (3) By a member bank held for the ac- fiscal agent of the United States) or to count of its customers; the United States, or to any transferee (4) In connection with deposits in a or pledgee eligible to maintain an ap- member bank of funds of States, mu- propriate book-entry account in its nicipalities, or other political subdivi- name with a Reserve bank under this sions; or, part, is effected and perfected, notwith- (5) In connection with the perform- standing any provision of law to the ance of an obligation or duty under contrary, by a Reserve bank making an Federal, State, municipal, or local law, appropriate entry in its records of the or judgments or decrees of courts. securities transferred or pledged. The The application of the book-entry pro- making of such an entry in the records cedure under this paragraph shall not of a Reserve bank shall (1) have the ef- derogate from or adversely affect the fect of a delivery in bearer form of de- relationships that would otherwise finitive Postal Service securities; (2) exist between a Reserve Bank in its in- have the effect of a taking of delivery dividual capacity and its depositors by the transferee or pledgee; (3) con- concerning any deposits under this stitute the transferee or pledgee a paragraph. Whenever the book-entry holder; and (4) if a pledge, effect a per- procedure is applied to such Postal fected security interest therein in Service securities, the Reserve Bank is favor of the pledgee. A transfer or authorized to take all action necessary pledge of book-entry Postal Service se- in respect of the book-entry procedure curities effected under this paragraph to enable such Reserve Bank in its in- shall have priority over any transfer, dividual capacity to perform its obliga- pledge, or other interest, theretofore or tions as depository with respect to thereafter effected or perfected under such Postal Service securities. paragraph (b) of this section or in any (b) A Reserve Bank as fiscal agent of other manner. the United States acting on behalf of (b) A transfer or a pledge of transfer- the Postal Service may apply the book- able Postal Service securities, or any entry procedure to Postal Service secu- interest therein, which is maintained rities deposited as collateral pledged to by a Reserve bank (in its individual ca- the United States under Treasury De- pacity or as fiscal agent of the United partment Circulars Nos. 92 and 176, States) in a book-entry account under

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this part, including securities in book- (c) No filing or recording with a pub- entry form under § 761.3(a)(3), is ef- lic recording office or officer shall be fected, and a pledge is perfected, by necessary or effective with respect to any means that would be effective any transfer or pledge of book-entry under applicable law to effect a trans- Postal Service securities or any inter- fer or to effect and perfect a pledge of est therein. the Postal Service securities, or any (d) A Reserve Bank shall, upon re- interest therein, if the securities were ceipt of appropriate instructions, con- maintained by the Reserve bank in vert book-entry Postal Service securi- bearer definitive form. For purposes of ties into definitive Postal Service secu- transfer or pledge hereunder, book- rities and deliver them in accordance entry Postal Service securities main- with such instructions; no such conver- tained by a Reserve bank shall, not- sion shall effect existing interests in withstanding any provision of law to such Postal Service securities. the contrary, be deemed to be main- (e) A transfer of book-entry Postal tained in bearer definitive form. A Re- Service securities within a Reserve serve bank maintaining book-entry Bank shall be made in accordance with Postal Service securities either in its procedures established by the Bank not individual capacity or as fiscal agent of inconsistent with this part. the United States is not a bailee for (f) All requests for transfer or with- purposes of notification of pledges of drawal must be made prior to the ma- those securities under this paragraph, turity or date of call of the securities. or a third person in possession for pur- [37 FR 16801, Aug. 19, 1972, as amended at 38 poses of acknowledgment of transfers FR 12919, May 17, 1973] thereof under this paragraph. Where transferable Postal Service securities § 761.5 Withdrawal of Postal Service are recorded on the books of a deposi- securities. tary (a bank, banking institution, fi- (a) A depositor of book-entry Postal nancial firm, or similar party, which Service securities may withdraw them regularly accepts in the course of its from a Reserve Bank by requesting de- business Postal Service securities as a livery of like definitive Postal Service custodial service for customers, and securities to itself or on its order to a maintains accounts in the names of transferee. such customers reflecting ownership of (b) Postal Service securities which or interest in such securities) for ac- are actually to be delivered upon with- count of the pledgor or transferor drawal may be issued either in reg- thereof and such securities are on de- istered or in bearer form. posit with a Reserve bank in a book- entry account hereunder, such deposi- § 761.6 Delivery of Postal Service secu- tary shall, for purposes of perfecting a rities. pledge of such securities or effecting A Reserve Bank which has received delivery of such securities to a pur- Postal Service securities and effected chaser under applicable provisions of pledges, made entries regarding them, law, be the bailee to which notification or transferred or delivered them ac- of the pledge of the securities may be cording to the instructions of its de- given or the third person in possession positor is not liable for conversion or from which acknowledgment of the for participation in breach of fiduciary holding of the securities for the pur- duty even though the depositor had no chaser may be obtained. A Reserve right to dispose of or take other action bank will not accept notice or advice of in respect of the securities. A Reserve a transfer or pledge effected or per- Bank shall be fully discharged of its fected under this paragraph, and any obligations under this part by the de- such notice or advice shall have no ef- livery of Postal Service securities in fect. A Reserve bank may continue to definitive form to its depositor or upon deal with its depositor in accordance the order of such depositor. Customers with the provisions of this part, not- of a member bank or other depositary withstanding any transfer or pledge ef- (other than a Reserve Bank) may ob- fected or perfected under this para- tain Postal Service securities in defini- graph. tive form only by causing the depositor

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of the Reserve Bank to order the with- 762.15 Postal Service payments not made by drawal thereof from the Reserve Bank. disbursement postal money order.

§ 761.7 Registered bonds and notes. Subpart B—Endorsements, Payment, Guar- anties, Warranties and Processing of No formal assignment shall be re- Disbursement Postal Money Orders quired for the conversion to book-entry Postal Service securities of registered 762.21 Scope. Postal Service securities held by a Re- 762.22 Definitions. 762.23 General rules. serve Bank (in either its individual ca- 762.24 Guaranty of endorsements. pacity or as fiscal agent of the United 762.25 Reclamation of amounts of paid dis- States) on the effective date of this bursement postal money orders. part for any purpose specified in 762.26 Postal facilities not to cash disburse- § 761.3(a). Registered Postal Service se- ment postal money orders. curities deposited thereafter with a Re- 762.27 Processing of disbursement postal serve Bank for any purpose specified in money orders by Federal Reserve Banks. 762.28 Release of original disbursement § 761.3 shall be assigned for conversion postal money orders. to book-entry Postal Service securi- 762.29 Endorsement of disbursement postal ties. The assignment, which shall be money orders by payees. executed in accordance with the provi- 762.30 Disbursement postal money orders sions of part 760 of this subchapter and issued to incompetent payees. subpart F of 31 CFR part 306, so far as 762.31 Disbursement postal money orders issued to deceased payees. applicable, shall be to ‘‘Federal Re- serve Bank of llllll as fiscal Subpart C—Issuance of Substitutes for Lost, agent of the United States acting on Destroyed, Mutilated, and Defaced behalf of the Postal Service for conver- Disbursement Postal Money Orders sion to book-entry Postal Service securities.’’ 762.41 Advice of non-receipt or loss, destruction, or mutilation. 762.42 Request for substitute disbursement § 761.8 Servicing book-entry Postal postal money orders; requirements for Service securities; payment of inter- undertaking of indemnity. est, payment at maturity or upon 762.43 Issuance of substitute disbursement call. postal money order. Interest becoming due on book-entry 762.44 Receipt or recovery of original dis- Postal Service securities shall be bursement postal money order. 762.45 Removal of stoppage of payment. charged in the Postal Service Fund on the interest due date and remitted or AUTHORITY: 39 U.S.C. 401(2), 401(3), 401(4), credited in accordance with the deposi- 401(10), and 404(6). tor’s instructions. Such securities shall SOURCE: 40 FR 52371, Nov. 10, 1975, unless be redeemed and charged in the Postal otherwise noted. Service Fund on the date of maturity, call or advance refunding, and the re- Subpart A—General, Definitions, demption proceeds, principal and inter- Issuance est, shall be disposed of in accordance with the depositor’s instructions. § 762.11 General. The Postal Service, at its discretion, PART 762—DISBURSEMENT POSTAL issues a specialized postal money order, MONEY ORDERS designated a Disbursement Postal Money Order in payment of Postal Service obligations. Disbursement Subpart A—General, Definitions, Issuance Postal Money Orders are distinguish- Sec. able on their face from other postal 762.11 General. money orders in the following ways: 762.12 Definitions. (a) Disbursement Postal Money Or- 762.13 Issuance. ders have words of negotiability—‘‘Pay 762.14 Amounts for which disbursement to the order of’’—printed on their face, postal money orders may be issued. while other postal money orders simply bear the words ‘‘Pay to’’ on their face;

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(b) Disbursement Postal Money Or- priate to pay Postal Service Obliga- ders, unlike other postal money orders, tions. There is no maximum amount bear on their face the phrase, ‘‘This above which a Disbursement Postal special money order is drawn by the Money Order may not be issued. Postal Service to pay one of its own obligations.’’; and § 762.15 Postal Service payments not (c) The amounts of Disbursement made by disbursement postal Postal Money Orders are printed in money order. words as well as numbers, while the Postal Service payments not made by amounts of postal money orders avail- Disbursement Postal Money Order are able at post offices are printed in num- made by cash, U.S. Treasury Check, or bers only. by regular postal money order, and may be made by electronic funds trans- § 762.12 Definitions. fer. As used in part 762 of this chapter, the term: Subpart B—Endorsements, Pay- (a) Disbursement Postal Money Order ment, Guaranties, Warranties means a money order (described in and Processing of Disburse- Part 762) issued by the Postal Service ment Postal Money Orders to pay one of its own obligations. (b) Federal Reserve Bank means a Fed- § 762.21 Scope. eral Reserve Bank or branch thereof. (c) Financial organization means any The regulations in this subpart pre- bank, savings bank, savings and loan scribe the requirements for endorse- association or similar institution, or ment and the conditions for payment Federal or State chartered credit of Disbursement Postal Money Orders union. drawn by the Postal Service. (d) Person or persons means an indi- § 762.22 Definitions. vidual or individuals, or an organization or organizations, whether incor- For definitions applicable to this sub- porated or not, including all forms of part see § 762.12 of this chapter. banking institutions. (e) Presenting Bank means a bank or § 762.23 General rules. other depositor of a Federal Reserve All Disbursement Postal Money Or- Bank which presents Disbursement ders drawn by the Postal Service are Postal Money Orders to and receives payable without limitation of time. credit therefor from a Federal Reserve The Postal Service shall have the usual Bank. right of a drawee to examine Disburse- (f) Reclamation means the action ment Postal Money Orders presented taken by the Postal Service to obtain for payment and refuse payment of any refund of the amounts of paid Disburse- Disbursement Postal Money Orders, ment Postal Money Orders. and shall have a reasonable time to (g) Postal Service means the U.S. make such examination. Disbursement Postal Service. Postal Money Orders shall be deemed to be paid by the Postal Service only § 762.13 Issuance. after first examination has been fully Disbursement Postal Money Orders completed. If the Postal Service is on are issued solely by Postal Data Cen- notice of a doubtful question of law or ters and solely for the purpose of pay- fact when a Disbursement Postal ing Postal Service obligations. Accord- Money Order is presented for payment, ingly, Disbursement Postal Money Or- payment will be deferred pending set- ders may be issued in lieu of U.S. tlement by the Postal Service. Treasury checks. § 762.24 Guaranty of endorsements. § 762.14 Amounts for which disburse- The presenting bank and the endors- ment postal money orders may be ers of a Disbursement Postal Money issued. Order presented to the Postal Service Disbursement Postal Money Orders for payment shall be deemed to guar- may be issued for any amount appro- antee to the Postal Service that all

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prior endorsements are genuine, wheth- bursement Postal Money Orders as fol- er or not an express guaranty is placed lows: on the Disbursement Postal Money (a) Federal Reserve Banks shall not Order. When the first endorsement has be expected to cash Disbursement Post- been made by one other than the payee al Money Orders presented directly to personally, the presenting bank and them for payment; and the endorsers shall be deemed to guar- (b) Each Federal Reserve Bank shall: antee to the Postal Service, in addition (1) Receive Disbursement Postal to other warranties, that the person Money Orders from its member banks, who so endorsed had unqualified capac- and its other depositors which guar- ity and authority to endorse the Dis- antee all prior endorsements thereon; bursement Postal Money Order on be- (2) Give immediate credit therefor in half of the payee. accordance with its current Time Schedules and charge the amount § 762.25 Reclamation of amounts of thereof to the general account of the paid disbursement postal money or- U.S. Treasury, subject to examination ders. and payment by the Postal Service; The Postal Service shall have the and right to demand refund from the pre- (3) Forward the Disbursement Postal senting bank of the amount of a paid Money Orders to the Postal Service. Disbursement Postal Money Order if § 762.28 Release of original disburse- after payment the Disbursement Postal ment postal money orders. Money Order is found to bear a forged or unauthorized endorsement, or an en- An original Disbursement Postal dorsement by another for a deceased Money Order may be released to a re- payee where the right to the proceeds sponsible endorser only upon receipt of of such Disbursement Postal Money Or- a properly authorized request showing ders terminated upon the death of the the reason it is required. payee, or to contain any other material § 762.29 Endorsement of disbursement defect or alteration which was not dis- postal money orders by payees. covered upon first examination. If refund is not made, the Postal Service (a) General requirements. Disburse- shall take such action against the ment Postal Money Orders shall be en- proper parties as may be necessary to dorsed by the payee or the payees protect its interests. named, or by another on behalf of such payee or payees as set forth in this sub- § 762.26 Postal facilities not to cash part B. The forms of endorsement shall disbursement postal money orders. conform to those recognized by general principles of law and commercial usage Post offices and other postal facili- for the negotiation, transfer, or collec- ties shall not be expected to cash Dis- tion of negotiable instruments. bursement Postal Money Orders or to (b) Endorsement of disbursement postal return cash for endorsed Disbursement money orders by a financial organization Postal Money Orders offered in pay- under the payee’s authorization. When a ment for postal service in amounts less Disbursement Postal Money Order is than the value of a Disbursement Post- credited by a financial organization to al Money Order. However, properly en- the payee’s account under his author- dorsed Disbursement Postal Money Or- ization, the financial organization may ders may be accepted as total or par- use an endorsement substantially as tial payment for postal services. follows: § 762.27 Processing of disbursement Credit to the account of the within-named postal money orders by Federal Re- payee in accordance with payee’s or payees’ serve Banks. instructions. Absence of endorsement guaranteed. In accordance with an agreement between the Postal Service and the Fed- A financial organization using this eral Reserve Banks as depositaries and form of endorsement shall be deemed fiscal agents of the United States, Fed- to guarantee to all subsequent endors- eral Reserve Banks will handle Dis- ers and to the Postal Service that it is

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acting as an attorney in fact for the Subpart C—Issuance of Substitutes payee or payees, under his or their au- for Lost, Destroyed, Mutilated, thorization. and Defaced Disbursement (c) Endorsement of disbursement postal Postal Money Orders money orders drawn in favor of financial organizations. All Disbursement Postal § 762.41 Advice of non-receipt or loss, Money Orders drawn in favor of finan- destruction, or mutilation. cial organizations, for credit to the ac- (a) In the event of the non-receipt, counts of persons designating payment loss, or destruction of a Disbursement so to be made, shall be endorsed in the Postal Money Order, or the mutilation name of the financial organization as or defacement of a Disbursement Post- payee in the usual manner. al Money Order to an extent which renders it non-negotiable, the owner § 762.30 Disbursement postal money should immediately contact the Money orders issued to incompetent pay- Order Division, Postal Data Center, ees. P.O. Box 14963, St. Louis, MO 63182, de- (a) If the Disbursement Postal Money scribing the Disbursement Postal Order is endorsed by a legal guardian Money Order, stating the purpose for or other fiduciary and presented for which it was issued, giving, if possible, payment by a bank it will be paid by its date, number, and amount, and re- the Postal Service without submission questing that payment be stopped. In to the Postal Service of documentary cases involving mutilated or defaced proof of authority of the guardian or Disbursement Postal Money Orders the other fiduciary. owner should enclose the mutilated or (b) If a guardian has not been or will defaced item with his communication. not be appointed, the Disbursement (b) If the Disbursement Postal Money Postal Money Order shall be forwarded Order, which is the basis of the owner’s to the Money Order Division, Postal claim, is determined to be outstanding, Data Center, P.O. Box 14963, St. Louis, the Money Order Division shall furnish MO 63182, with a full explanation of the the claimant an appropriate application form for obtaining a substitute circumstances. Disbursement Postal Money Order. § 762.31 Disbursement postal money However, the execution of an applica- orders issued to deceased payees. tion shall not be required in the event the original written statement sub- (a) If the Disbursement Postal Money mitted by the claimant substantially Order is endorsed by an Executor or meets the requirements of the pre- Administrator and presented for pay- scribed application form. ment by a bank it will be paid by the Postal Service without submission to § 762.42 Request for substitute dis- the Postal Service of documentary bursement postal money orders; re- proof of the authority of the Executor quirements for undertaking of in- or Administrator. demnity. (b) If an Executor or Administrator In the case of a request for a sub- has not been appointed or if there is stitute Disbursement Postal Money doubt as to whether the proceeds of the Order: Disbursement Postal Money Order pass (a) An undertaking of indemnity in to the estate of the deceased payee, the penal sum equal to the amount of the instrument should be returned to the Disbursement Postal Money Order Money Order Division, Postal Data shall, unless otherwise provided in this Center, P.O. Box 14963, St. Louis, MO section, be executed by the claimant, 63182, for determination whether, under as may be required by the Postal Serv- ice, and submitted to the Money Order applicable laws, payment is due, and Division. for reissuance to the appropriate (b) Unless the Postal Service deter- payee. mines that an undertaking of indemnity is essential in the public interest, no undertaking of indemnity shall be

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required in the following classes of ing such information as may be nec- cases: essary to identify the original instru- (1) If the Postal Service is satisfied ment. that the loss, theft, destruction, mutilation or defacement occurred without § 762.44 Receipt or recovery of original fault of the owner or holder, and while disbursement postal money order. the Disbursement Postal Money Order (a) If the original Disbursement Post- was in the custody or control of the al Money Order is received or recovered Postal Service; by the owner after he has requested the (2) If substantially the entire Dis- Postal Service to stop payment on the bursement Postal Money Order is pre- original but before a substitute has sented and surrendered by the owner or been received, he should immediately holder and the Postal Service is satis- advise the Money Order Division and fied as to the identity of the Disburse- hold such original Disbursement Postal ment Postal Money Order presented Money Order until receipt of instruc- and that any missing portions are not tions with respect to its negotiability. sufficient to form the basis of a valid (b) If the original Disbursement Post- claim against the Postal Service; al Money Order is received by the (3) If the Postal Service is satisfied owner after a substitute has been re- that the original Disbursement Postal ceived by him, the original shall not be Money Order is not negotiable and can- cashed, but shall be immediately for- not be made the basis of a valid claim warded to the Money Order Division. against the Postal Service; or Under no circumstances shall both the (4) If the amount of the Disbursement original and substitute be cashed. Postal Money Order is not more than $200. § 762.45 Removal of stoppage of payment. § 762.43 Issuance of substitute dis- Requests for removal of stoppage of bursement postal money order. payment shall be addressed to the Upon approval of the undertaking of Money Order Division. No request for indemnity, application, or statement of removal of stoppage of payment shall claim, the Money Order Division shall be accepted after issuance of a sub- issue to the claimant a substitute Dis- stitute Disbursement Postal Money bursement Postal Money Order show- Order has been approved.

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PART 775—NATIONAL ENVIRON- (f) Use all practicable means to pro- MENTAL POLICY ACT PROCE- tect, restore, and enhance the quality DURES of the human environment. (g) Reduce paperwork. (h) Reduce delay. Sec. 775.1 Purpose. 775.2 Policy. § 775.3 Responsibilities. 775.3 Responsibilities. (a) The Chief Environmental Officer 775.4 Definitions. is responsible for overall development 775.5 Classes of actions. of policy regarding NEPA and other en- 775.6 Categorical exclusions. vironmental policies. The officer in 775.7 Planning and early coordination. 775.8 Environmental evaluation guidelines. charge of the facilities or real estate 775.9 Environmental evaluation process. organization is responsible for the de- 775.10 Environmental assessments. velopment of NEPA policy as it affects 775.11 Environmental impact statements. real estate or acquisition, construction 775.12 Time frames for environmental im- and disposal of postal facilities con- pact statement actions. sistent with overall NEPA policy. Each 775.13 Public notice and information. officer with responsibility over the pro- 775.14 Hearings. posed program, project, action, or fa- AUTHORITY: 39 U.S.C. 401; 42 U.S.C.4321 et cility is responsible for compliance seq.; 40 CFR 1500.4. with NEPA as the responsible official. SOURCE: 44 FR 63525, Nov. 5, 1979, unless (b) Postal managers will designate otherwise noted. environmental coordinators to assist with compliance with NEPA proce- § 775.1 Purpose. dures. These procedures implement the Na- [63 FR 45719, Aug. 27, 1998] tional Environmental Policy Act (NEPA) regulations (40 CFR part 1500) § 775.4 Definitions. issued by the Council on Environ- (a) The definitions set forth in 40 mental Quality (CEQ). CFR part 1508 apply to this part 775. [63 FR 45719, Aug. 27, 1998] (b) In addition to the terms defined in 40 CFR part 1508, the following defi- § 775.2 Policy. nitions apply to this part: It is the policy of the Postal Service Approving official means the person or to: group of persons, who authorizes fund- (a) Interpret and administer applica- ing as established through the delega- ble policies, regulations, and public tions of approval authority issued by laws of the United States in accordance the finance organization. That person with the policies set forth in the Na- or group of persons may not have pro- tional Environmental Policy Act, as posed the action for which financial ap- amended, and the NEPA Regulations. proval is sought. (b) Make the NEPA process useful to Environmental checklist means a Post- Postal Service decision makers and the al Service form that identifies poten- public. tial environmental impacts for pro- (c) Emphasize environmental issues posed actions initiated by postal man- and alternatives in the consideration of agers. proposed actions. Mitigated FONSI means a FONSI (d) Encourage and facilitate public which requires the implementation of involvement in decisions which affect specified mitigation measures in order the quality of the human environment. to ensure that there are no significant (e) Use the NEPA process to identify impacts to the environment. and assess reasonable alternatives to Record of environmental consideration proposed actions in order to avoid or means the Postal Service form that minimize adverse effects on the envi- identifies the Postal Service’s review ronment. of proposed activities under NEPA.

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Responsible official means the person, (11) Postal facility function changes or designated representative, who pro- involving new uses of greater environ- poses an action and is responsible for mental intensity; compliance with NEPA. For larger (12) Reduction in force involving projects, that person may not have the more than 1000 positions; financial authority to approve such ac- (13) Relocation of 300 or more em- tion. The responsible official signs the ployees more than 50 miles; NEPA documents (FONSI, ROD) and (14) Initiation of legislation. the REC. [63 FR 45719, Aug. 27, 1998] [63 FR 45719, Aug. 27, 1998]

§ 775.5 Classes of actions. § 775.6 Categorical exclusions. (a) Actions which normally require an (a) The classes of actions in this sec- environment impact statement. None, tion are those that the Postal Service however the Postal Service will pre- has determined do not individually or pare an EIS when necessary based on cumulatively have a significant impact the factors identified in 40 CFR 1508.27. on the human environment. To be cat- (b) Actions requiring an environmental egorically excluded, it must be deter- assessment. Classes of actions that will mined that a proposed action fits with- require an environmental assessment in a class listed and there are no ex- unless categorically excluded include: traordinary circumstances that may (1) Any project that includes the con- affect the significance of the proposal. version, purchase, or any other alter- The action must not be connected to ation of the fuel source for 25 percent other actions with potentially signifi- or more of USPS vehicles operating cant impacts or is not related to other with fuel other than diesel or gasoline proposed actions with potentially sig- in any carbon monoxide or ozone non- nificant impacts. Extraordinary cir- attainment area; cumstances are those unique situations (2) Any action that would adversely presented by specific proposals, such as affect a federally listed threatened or scientific controversy about the envi- endangered species or its habitat; ronmental impacts of the proposal, un- (3) Any action that would directly af- certain effects or effects involving fect public health; unique or unknown risks. (4) Any action that would require de- (b) Categorical exclusions relating to velopment within park lands, or be lo- general agency actions: cated in close proximity to a wild or (1) Policy development, planning and scenic river or other ecologically crit- implementation that relate to routine ical area; activities such as personnel, organiza- (5) Any action affecting the quality tional changes or similar administra- of the physical environment that would tive functions. be scientifically highly controversial; (6) Any action that may have highly (2) Routine actions, including the uncertain or unknown risks on the management of programs or activities human environment; necessary to support the normal con- (7) Any action that threatens a viola- duct of agency business, such as admin- tion of applicable federal, state, or istrative, financial, operational and local law or requirements imposed for personnel action that involve no com- the protection of the environment; mitment of resources other than man- (8) New construction of a facility power and funding allocations. with vehicle maintenance or fuel dis- (3) Award of contracts for technical pensing capabilities, whether owned or support services, management and op- leased; eration of a government owned facility, (9) Acquisition or lease of an existing and personal services. building involving new uses or a (4) Research activities and studies change in use to a greater environ- and routine data collection when such mental intensity; actions are clearly limited in context (10) Real property disposal involving and intensity. a known change in use to a greater en- (5) Educational and informational vironmental intensity; programs and activities.

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(6) Reduction in force resulting from ‘‘reference actions’’ shall be main- workload adjustments, reduced per- tained by the Chief Environmental Of- sonnel or funding levels, skill imbal- ficer or designee. The proposed action ances or other similar causes that do must be essentially the same in con- not affect more than 1,000 positions. text and the same or less in intensity (7) Postal rate or mail classification or create fewer impacts than the ‘‘ref- actions, address information system erence action’’ previously studied changes, post office name and zip code under an EA or EIS in order to qualify changes. for this exclusion. (8) Property protection, law enforce- (18) Rulemakings that are strictly ment and other legal activities under- procedural, and interpretations and taken by the Postal Inspection Service, rulings with existing regulations, or the Law Department, the Judicial Offi- modifications or rescissions of such in- cer, and the Inspector General. terpretations and rulings. (9) Activities related to trade rep- (c) Categorical exclusions relating to resentation and market development emergency or restoration actions: activities abroad. (1) Any cleanup, remediation or re- (10) Emergency preparedness plan- moval action conducted under the pro- ning activities, including designation visions of the Comprehensive Environ- of on-site evacuation routes. mental Response Compensation and Li- (11) Minor reassignment of motor ve- ability Act (CERCLA) or the Resource hicles and purchase or deployment of Conservation and Recovery Act motor vehicles to new locations that (RCRA), any asbestos abatement ac- do not adversely impact traffic safety, tions regulated under the provisions of congestion or air quality. the Occupational Safety and Health (12) Procurement or disposal of mail Act (OSHA), or the Clean Air Act or handling or transport equipment. any PCB transformer replacement or (13) Acquisition, installation, oper- any lead based paint abatement actions ation, removal or disposal of commu- regulated under the provisions of the nication systems, computers and data Toxic Substances Control Act (TSCA), processing equipment. OSHA or RCRA. (14) Postal facility function changes (2) Testing associated with environ- not involving construction, where mental cleanups or site investigations. there are no substantial relocation of employees, or no substantial increase (d) Categorical exclusions relating to in the number of motor vehicles at a maintenance or repair actions at exist- facility. ing facilities: (15) Closure or consolidation of post (1) Siting, construction or operation offices under 39 U.S.C. 404(d). of temporary support buildings or sup- (16) Minor operational changes at an port structures. existing facility to minimize waste (2) Routine maintenance and minor generation and for reuse of materials. activities, such as fencing, that occur These changes include but are not lim- in floodplains or state and local wet- ited to, adding filtration and recycling lands or pursuant to the nationwide, systems to allow reuse of vehicle or regional or general permitting process machine oil, setting up sorting areas to of the US Army Corps of Engineers. improve process efficiency, and segre- (3) Routine actions normally con- gating waste streams previously min- ducted to protect and maintain prop- gled and assigning new identification erties and which do not alter the con- codes to the two resulting streams. figuration of the building. (17) Actions which have an insignifi- (4) Changes in configuration of build- cant effect upon the environment as es- ings required to promote handicapped tablished in a previously written Envi- accessibility pursuant to the Architec- ronmental Assessment (EA) and Find- tural Barriers Act. ing of No Significant Impact (FONSI) (5) Repair to, or replacement in kind or Environmental Impact Statement or equivalent of building equipment or (EIS). Such repetitive actions shall be components (e.g., electrical distribu- considered ‘‘reference actions’’ and a tion, HVAC systems, doors, windows, record of all decisions concerning these roofs, etc.).

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(6) Internal modifications or im- row house or vacant lot in an urban provements to structure, or buildings area). to accommodate mail processing, com- (9) Acquisition and disposal through puter, communication or other similar sale, lease, transfer, reservation or ex- types of equipment or other actions change of real property for nature and which do not involve modification to habitat preservation, conservation, a the external walls of the facility. park or wildlife management. (7) Joint development and/or joint (10) New construction, Postal Service use projects that only involve internal owned or leased, or joint development modifications to an existing facility. and joint use projects, of any facility (8) Noise abatement measures, such unless the proposed action is listed as as construction of noise barriers and requiring an EA in § 775.5. installation of noise control materials. (11) Expansion or improvement of an (9) Actions which require concur- existing facility where the expansion is rence or approval of another federal within the boundaries of the site or oc- agency where the action is a categor- curs in a previously developed area un- ical exclusion under the NEPA regula- less the proposed action is listed as re- tions of that federal agency. quiring an EA in § 775.5. (e) Categorical exclusions relating to (12) Construction and disturbance real estate actions. pursuant to a nationwide, regional or (1) Obtaining, granting, disposing, or general permit issued by the US Army changing of easements, licenses and Corps of Engineers. permits, rights-of-way and similar in- (13) Any activity in floodplains being terests. regulated pursuant to § 775.6 and is not (2) Extension, renewal, renegotiation, listed as requiring an EA in § 775.5. or termination of existing lease agree- [63 FR 45720, Aug. 27, 1998, as amended at 76 ments. FR 53057, Aug. 25, 2011; 79 FR 2103, Jan. 13, (3) Purchase of Postal Service occu- 2014; 79 FR 33097, June 10, 2014] pied leased property where the planned postal uses do not differ significantly § 775.7 Planning and early coordina- from the past uses of the site. tion. (4) Acquisition or disposal of existing Early planning and coordination facilities and real property where the among postal functional groups is re- planned uses do not differ significantly quired to properly consider environ- from past uses of the site. mental issues that may be attributable (5) Acquisition of real property not to the proposed action. Operational and connected to specific facility plans or facility personnel must cooperate in when necessary to protect the interests the early concept stages of a program of the Postal Service in advance of or project. If it is determined that final project approval. This categorical more than one postal organization will exclusion only applies to the acquisi- be involved in any action, a lead orga- tion. Any subsequent use of the site for nization will be selected to complete a facility project must be considered the NEPA process before any NEPA under this part. documents are prepared. If it is deter- (6) Disposal through sale or outlease mined that a project has both real es- of unimproved real property. tate and non-real estate actions, the (7) Disposal through sale, outlease, facilities functional organization will transfer or exchange of real property to take the lead. other federal or state agencies. [63 FR 45721, Aug. 27, 1998] (8) Disposal of properties where the size, area, topography, and zoning are § 775.8 Environmental evaluation similar to existing surrounding prop- guidelines. erties and/or where current and reason- (a) Approach. When dealing with pro- able anticipated uses are or would be posals which may have an impact on similar to current surrounding uses the human environment, environ- (e.g., commercial store in a commer- mental coordinators, planners, decision cial strip, warehouse in an urban com- makers, and other officials responsible plex, office building in downtown area, for actions, will, as appropriate:

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(1) Use a systematic approach that (ii) The action is not affected by ex- integrates natural and social sciences traordinary circumstances which may and environmental design in planning cause it to have a significant environ- and making decisions. mental effect, or (2) Identify environmental effects (iii) The action is a type that is not and values in detail, and appraise them a major federal action with a signifi- in conjunction with economic and tech- cant impact upon the environment. nical analyses. (2) Findings of no significant impact. If (3) Consider environmental docu- an environmental assessment indicates ments at all decision points at which that there is no significant impact of a other planning documents are consid- proposed action on the environment, ered. (Plans and decisions are to reflect an environmental impact statement is environmental values. Proposed ac- not required. A ‘‘finding of no signifi- tions should be assessed as soon as cant impact’’ (FONSI) is prepared and their effects can be meaningfully eval- published in accordance with § 775.13. uated, to provide the bases for early de- When the proposed action is approved, cision on whether detailed environ- it may be accomplished without fur- mental impact statements must be pre- ther environmental consideration. A pared.) FONSI document briefly presents the (4) Study, develop, describe, and reasons why an action will not have a evaluate at all decision points, reason- significant effect on the human envi- able alternatives to recommended ac- ronment and states that an environ- tions which may have a significant ef- mental impact statement will not be fect on the environment. prepared. It must refer to the environ- (b) Proposal requirements. When an en- mental assessment and any other envi- vironmental impact statement has ronmentally pertinent documents re- been prepared, it must accompany the lated to it. The assessment may be in- proposal through and be used in the de- cluded in the finding if it is short, in cision-making process. Any other pro- which case the discussion in the assess- posal must refer to applicable environment need not be repeated in the find- mental documents (e.g., determination ing. The FONSI may be a mitigated of categorical exclusion; finding of no FONSI in which case the required miti- significant impact; notice of intent to gation factors should be listed in the prepare an impact statement), and rel- FONSI. The use of a mitigated FONSI evant comments and responses. is conditioned upon the implementa- (c) Lead agency arrangements. If the tion of the identified mitigation meas- Postal Service and another Federal ures in the EA that support the FONSI. agency become involved in a lead agen- Unless the mitigation measures are im- cy arrangement for the preparation of plemented by the responsible official, an environmental impact statement, the use of an EA in lieu of an EIS is not the Service will cooperate fully. acceptable. (3) Impact statement preparation de- [44 FR 63525, Nov. 5, 1979. Redesignated at 63 cision and notices. If an environmental FR 45719, Aug. 27, 1998] assessment indicates that a proposed major action would have a significant § 775.9 Environmental evaluation proc- impact on the environment, a notice of ess. intent to prepare an impact statement (a) All actions—(1) Assessment of ac- is published (see § 775.13) and an envi- tions. An environmental checklist may ronmental impact statement is pre- be used to support a record of environ- pared. mental consideration as the determina- (4) Role of impact statement in deci- tion that the proposed action does not sion making. An environmental impact require an environmental assessment. statement is used, with other analyses An environmental assessment must be and materials, to decide which alter- prepared for each proposed action ex- native should be pursued, or whether a cept that an assessment need not be proposed action should be abandoned or made if a determination is made that: other courses of action pursued. See (i) The action is one of a class listed § 775.12 for restrictions on the timing of in § 775.6, Categorical Exclusions, and this decision.

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(5) Record of decision. For actions re- not required until the contending quiring environmental impact state- project sites have been determined. ments, a concise public record of deci- The information contained in the envi- sion is prepared when a decision, or a ronmental assessment report must be proposal for legislation, is made. The used, together with other site planning record, which may be integrated into information, in the selection of the any other record, or notice, including final site. that required by Postal Service regula- (2) When an environmental assess- tions and procedures governing inter- ment indicates that an environmental governmental review of Postal Service impact statement may be needed for a facility project actions, must: proposed facility action, the respon- (i) State what the decision was. sible officer will make the decision (ii) Identify all alternatives considered in reaching a decision, specifying whether to prepare an environmental alternatives considered to be environ- impact statement for presentation to mentally preferable; identify and dis- the Capital Investment Committee, cuss all significant factors, including and to the Board of Governors if the any essential considerations of na- Board considers the proposal. tional policy, which were weighed in (3) If an environmental impact state- making the decision and state how ment is presented to the Committee or those considerations entered into the the Board, and an analysis indicates decision. that it would be more cost-effective to (iii) State whether all practicable proceed immediately with continued means to avoid or minimize environ- control of sites, (including advance ac- mental harm from the alternative se- quisition, if necessary, and where au- lected have been or will be adopted, thorized by postal procedures), envi- and if not, why not. ronmental impact statement prepara- (6) Actions prohibited prior to issuance tion, and project designs, a budgetary of record of decision. Until a record of request will include authorization of decision is issued, no action may be funds to permit: taken on a proposal on which an envi- (i) The preparation of an impact ronmental impact statement is made if statement encompassing all reasonable the action would: alternatives and site alternatives, (i) Have an adverse environmental impact, or (ii) The continued control of specified (ii) Limit the choice of reasonable al- competing sites (including advance ac- ternatives. quisition, if necessary, and where au- (7) Mitigation measures. Practicable thorized by postal procedures), chosen mitigation measures identified in an to preserve environmental or other op- environmental assessment must be im- tions, and plemented. Mitigation measures de- (iii) The development of limited described in an environmental impact signs of facilities for each competing statement and accepted in a decision site. must be implemented. Upon request, (4) A completed environmental im- the Postal Service informs federal, pact statement will be presented to the state, and local agencies and the public Capital Investment Committee, and to of the progress in carrying out adopted the Board of Governors if the Board mitigation measures. considers the proposal, for use in decid- (b) Additional requirements for facility ing whether a proposed project should actions. (1) The environmental assess- proceed, be restudied, or be abandoned. ment of any action which involves the If the decision is to proceed with a pro- construction or acquisition of a new posed project, the Committee, or the mail processing facility must include Board if it considers the proposal, de- reasonable alternatives to the proposed cides which alternative site is to be action and not just consideration of contending sites for a facility. This process must be started early in the planning of the action. An environmental assessment report, however, is

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used for project development, and au- sonable courses of action, and mitiga- thorizes the project. tion measures. (iii) Impacts, which may be direct, [44 FR 63525, Nov. 5, 1979, as amended at 48 FR 29378, June 24, 1983; 50 FR 32411, Aug. 12, indirect, or cumulative. 1985; 50 FR 33036, Aug. 16, 1985; 55 FR 10454, (3) Issues which are not significant Mar. 21, 1990. Redesignated and amended at are identified and eliminated. 63 FR 45719, 45721, Aug. 27, 1998; 65 FR 41012, (4) The determinations made must be July 3, 2000] revised if substantial changes are made later in the proposed action, or if sig- § 775.10 Environmental assessments. nificant new circumstances or informa- (a) An environmental assessment tion arise which bear on the proposal must contain: or its impacts. (1) A summary of major consider- (b) Preparation. (1) Except for pro- ations and conclusions, posals for legislation, environmental (2) A description of the proposed ac- impact statements are prepared in two tion, stages: (3) For each reasonable alternative, a (i) Draft environmental impact state- description of the affected environment, prepared in accordance with the ment, the environmental consequences, scope decided upon under paragraph (a) the mitigation measures, if any, and a of this section. comparison to all alternatives consid- (ii) Final environmental impact ered. statement, responding to comments on (4) A list of applicable environmental the draft statement and discussing and permits necessary to complete the pro- responding to any responsible opposing posed action. view which was not adequately dis- (b) Those preparing an environmental cussed in the draft statement. assessment must solicit information (2) Environmental impact statements and views from Federal, State, and must: local agencies and, where there is a (i) Be analytic rather than encyclo- substantial likelihood of significant ef- pedic. fects on the environment, the public. (ii) Contain discussions of impacts in All responsible views and information proportion to their significance. Insig- must be considered. nificant impacts eliminated during the [44 FR 63525, Nov. 5, 1979. Redesignated and process under § 775.11(a) to determine amended at 63 FR 45719, 45722, Aug. 27, 1998] the scope of issues must be discussed only to the extent necessary to state § 775.11 Environmental impact state- why they will not be significant. ments. (iii) Be concise, and not longer than (a) Determining scope. Before an envi- is necessary to comply with NEPA. ronmental impact statement is pre- They must not contain repeated state- pared, the following procedures must ments of the same basic points. be followed to determine what issues (iv) Contain discussions of alter- are to be addressed and in what depth: natives considered and of how alter- (1) Affected Federal, State, and local natives chosen will meet the require- agencies and other interested persons ments of NEPA and other environ- are invited to participate by furnishing mental laws and policies. written views and information, or at a (v) Encompass the range of alter- hearing if appropriate. Notice is given natives to be considered by the deci- in accordance with § 775.13. sion makers. (2) The significance of issues to be (vi) Serve to assess the environ- analyzed in depth in the environmental mental impact of proposed actions, impact statement is determined rather than to justify decisions already through consideration of: made. (i) Actions which are closely related, (3) The text of final environmental or similar, or have cumulative signifi- impact statements normally should be cant impacts. less than 150 pages. Statements on pro- (ii) Alternatives, which must include posals of unusual scope or complexity the ‘‘no action’’ alternative, other rea- normally should be less than 300 pages.

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(4) Staged or ‘‘tiered’’ environmental to the need for an authorization it impact statements must not contain must be indicated. repetitive discussions of the same (10) An environmental impact state- issues. Each document must state ment must contain a discussion of any where each earlier document is avail- inconsistency between the proposed ac- able. tion and any State or local law, ordi- (5) Material may be incorporated into nance, or approved plan; and must con- an environmental impact statement by tain a description of the manner and reference only when the material is extent to which the proposed action reasonably available for inspection by will be reconciled with the law, ordi- potentially interested persons within nance, or approved plan. the time allowed for comment. (6) If information relevant to reason- (11) Where State laws or local ordi- ably foreseeable adverse impacts can- nances impose environmental impact not be obtained because the overall statement requirements which are not cost of obtaining it is exorbitant or the in conflict with those in NEPA, an en- means to obtain it are not known, the vironmental impact statement made fact that such information is incom- by the Postal Service should satisfy plete or unavailable must be stated pertinent State and local requirements clearly. In addition, the relevance of to the extent practicable. the incomplete or unavailable informa- (c) Format. The standard format for tion to the evaluation of the impacts environmental statements is: must be stated, and a summary of ex- (1) Cover Sheet. The cover sheet, not isting credible scientific evidence rel- to exceed one page, must include: evant to evaluation of the impacts (i) A list of the responsible agencies must be included, as well as an evalua- including the lead agency and any co- tion of such impacts on the basis of operating agencies. theoretical approaches or generally ac- (ii) The title of the proposed action cepted research methods. For purposes that is the subject of the statement of this subsection, ‘‘reasonably foresee- (and if appropriate, the titles of related able’’ includes impacts which have cat- cooperating agency actions), together astrophic consequences, even if their probability of occurrence is low, pro- with any city, state, and county where vided that the analysis of the impacts the action is to take place. is supported by credible scientific evi- (iii) The name, address, and tele- dence, is not based on pure conjecture, phone number of a person at the agen- and is within the rule of reason. cy who can supply further information. (7) If a cost-benefit analysis relevant (iv) A designation of the document as to the choice among environmentally a draft or final statement or a draft or different alternatives was prepared for final supplement. the proposed action, it must be incor- (v) A one-paragraph abstract of the porated by reference or appended to the statement. statement to aid in evaluating the en- (vi) The date by which comments vironmental consequences. The rela- must be received. tionship between the cost-benefit anal- (2) Summary. The section should ysis and any analysis of unquantified compare and summarize the findings of environmental impacts, values, and the analyses of the affected environ- amenities must be discussed. ment, the environmental impacts, the (8) Methods used must be identified, environmental consequences, the alter- and footnote references must be made to scientific and other sources relied on natives, and the mitigation measures. for conclusions. Analytical techniques The summary should sharply define the may be incorporated in appendices. issues and provide a clear basis for (9) Permits, licenses, and other au- choosing alternatives. thorizations needed to implement a (3) Table of Contents. proposal must be listed in the draft en- (4) Proposed action. This section vironmental impact statement and the should clearly outline the need for the prospects for obtaining them must be EIS and the purpose and description of assessed. Where there is uncertainty as the proposed action. The entire action

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should be discussed, including con- sons who were primarily responsible nected and similar actions. A clear dis- for preparing the environmental im- cussion of the action will assist in con- pact statement or significant back- sideration of the alternatives. ground papers. (5) Alternatives and mitigation. This (9) List of Agencies, Organizations and portion of the environmental impact Persons to Whom Copies of the Statement statement is vitally important. Based Are Sent. on the analysis in the Affected Envi- (10) Index. ronment and Environmental Con- (11) Appendices. Include comments on sequences section (see § 775.11(c)(6)), the draft statement in final statement. environmental impacts and the alter- (d) Distribution. (1) Any completed natives are presented in comparative draft environmental impact statement form, thus sharply defining the issues which is made the subject of a public and providing a clear basis for choosing hearing, must be made available to the alternatives. Those preparing the public as provided in § 775.12, of this statement must: chapter at least 15 days in advance of (i) Explore and evaluate all reason- the hearing. able alternatives, including the ‘‘no ac- (2) Draft and final environmental im- tion’’ alternative, and briefly discuss pact statements must be filed with the the reasons for eliminating any alter- Environmental Protection Agency. natives. Five copies are filed with EPA’s head- (ii) Devote substantial treatment to quarters addressed to the Office of Fed- each alternative considered in detail, eral Activities (A–104), Environmental including the proposed action, so that Protection Agency, 401 M Street SW., reviewers may evaluate their compara- Washington, DC 20460; five copies are tive merits. also filed with the responsible EPA re- (iii) Identify the preferred alter- gion. Statements may not be filed with native or alternatives in the draft and the EPA earlier than they are trans- final statements. mitted to commenting agencies and (iv) Describe appropriate mitigation made available to the public. measures not considered to be an inte- (3) Copies of draft and final environ- gral part of the proposed action or al- mental impact statements must be fur- ternatives. See § 775.9(a)(7). nished to: (6) Affected Environment and Environ- mental Consequences. For each reason- (i) Any Federal agency which has ju- able alternative, each affected element risdiction by law or special expertise of the environment must be described, with respect to any environmental im- followed immediately by an analysis of pact involved. the impacts (environmental con- (ii) Any appropriate Federal, state, sequences). The analysis must include, or local agency authorized to develop among others, the following: and enforce environmental standards. (i) Any adverse environmental effects (iii) The appropriate review officials which cannot be avoided should the ac- identified in the Postal Service regulation be implemented. tions and procedures governing inter- (ii) The relationship between short- governmental review of Postal Service term uses of the environment and the facility project actions, the State His- maintenance and enhancement of long- toric Preservation Officer, and, when term productivity, National Register or eligible properties (iii) Any irreversible or irretrievable may be affected, the Advisory Council commitments of resources should the on Historic Preservation. action be implemented, and (iv) Any person, organization or (iv) Energy requirements and con- agency requesting them. servation; and natural, or depletable, (4) Copies of final environmental im- resource requirements and conserva- pact statements must be furnished to tion. any person who, or organization or (7) List of Mitigation Measures. agency which, submitted substantive (8) List of Preparers. List the names, comments on the draft. together with the qualifications (exper- (e) Responses to comments. (1) A final tise, professional disciplines), of per- statement responds to comments on a

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draft statement in one or more of the (1) A legislative environmental im- following ways: pact statement is considered part of (i) Modification of alternatives, in- the formal transmittal of a legislative cluding the proposed action. proposal to the Congress. It may be (ii) Development and evaluation of transmitted to the Congress up to 30 alternatives not previously given seri- days after the proposal. The statement ous consideration. must be available in time for Congres- (iii) Supplementation, improvement, sional hearings and deliberations. or modification of analyses. (2) Preparation and processing of a (iv) Correction of facts. legislative statement must conform to (v) Explanation of why a comment the requirements for impact state- does not warrant a direct response, cit- ments, except as follows: ing supporting sources, authorities, or (i) It is not necessary to determine reasons. Relevant circumstances which the scope of issues. may trigger reappraisal or further re- (ii) A draft is considered to be a final sponse must be indicated. statement. Both draft and final state- (2) Substantive comments received ments are needed only when: on a draft statement must be attached (A) A Congressional committee with to the final statement. jurisdiction over the proposal has a (3) If all of the changes are minor and rule requiring both. are confined to responses described in (B) Both are specifically required by paragraphs (e)(1) (iv) and (v) of this statute for proposals of the type being section, errata sheets may be written, submitted. and only the comments and errata (3) Comments received on a legisla- sheets need be recirculated. In such a tive statement, and the Postal Serv- case, the draft statement with the ice’s responses, must be forwarded to comments, errata sheets, and a new the Congress. cover, must be filed as the final statement. [44 FR 63525, Nov. 5, 1979, as amended at 48 (f) Supplements. (1) A supplement to a FR 29378, June 24, 1983; 55 FR 10455; Mar. 21, draft or final environmental impact 1990. Redesignated and amended at 63 FR statement must be issued if: 45719, 45722, Aug. 27, 1998] (i) Substantial changes are made in the proposed action that are relevant § 775.12 Time frames for environmental impact statement actions. to environmental concerns; or (ii) Significant new circumstances or (a) Each week the EPA publishes in information bearing on environmental the FEDERAL REGISTER a notice of the impacts of the proposed action arise or draft and final environmental impact are discovered. statements received in that office dur- (2) The decision on a proposed action ing the preceding week. The minimum involving an environmental impact time periods for decision on an action, statement, must be delayed until any specified in paragraphs (b) through (d) necessary supplement has been cir- of this section, are calculated from the culated and has gone through the com- date of publication of an EPA notice of menting period. A supplement is pre- receipt of the relevant impact state- pared, circulated, and filed in the same ment. manner (except for determining scope) (b) A decision on a proposed action as draft and final statements, unless may not be made or recorded until the alternative procedures are approved by later of the following dates: 90 days CEQ. after publication of the notice de- (g) Contracting. A contractor em- scribed in paragraph (a) of this section ployed to prepare an environmental for a draft statement or 30 days after impact statement must certify that it publication of the notice for a final has no financial or other interest in statement. the outcome of the project. (c) If a final statement is filed with (h) Proposals for Legislation. Legisla- the EPA within 90 days after a draft tive environmental impact statements statement is filed, the 30 day period must be prepared and transmitted as and the 90 day period may run concur- follows: rently.

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(d) A minimum of 45 days must be al- for information. Environmental docu- lowed for comments on draft statements are made available to the public ments. on request. Inspection, copying, and [44 FR 63525, Nov. 5, 1979. Redesignated at 63 the furnishing of copies will be in ac- FR 45719, Aug. 27, 1998] cordance with 39 CFR Part 265, ‘‘Re- lease of Information.’’ § 775.13 Public notice and information. [44 FR 63525, Nov. 5, 1979, as amended at 47 (a) Public notice is given of NEPA-re- FR 19992, May 10, 1982; 48 FR 29378, June 24, lated hearings, intent to undertake en- 1983. Redesignated and amended at 63 FR vironmental assessments and environ- 45719, 45722, Aug. 27, 1998] mental impact statements, and the availability of environmental docu- § 775.14 Hearings. ments (that is, environmental assess- (a) Public hearings must be held ments, findings of no significant im- whenever there is: pact, and environmental impact state- (1) Substantial environmental con- ments), as follows: troversy concerning a proposed action (1) Notices must be mailed to those and a request for a hearing by any re- who have requested them. sponsible individual or organization; (2) Notices concerning a proposal of (2) A request for a hearing by an national concern must be mailed to na- agency with jurisdiction over or special tional organizations reasonably ex- expertise concerning the proposed ac- pected to be interested. Any such no- tion; or tice must be published in the FEDERAL (3) A reasonable expectation that a REGISTER. (See paragraph (a)(4) of this hearing will produce significant infor- section. mation not likely to be obtained with- (3) Notices of any proposed action out a hearing. having effects primarily of local con- (b) The distribution and notice re- cern are given as follows: quirements of §§ 775.11(d)(1) and 775.13 (i) Any such notice, including a copy must be complied with whenever a of any pertinent environmental docu- hearing is to be held. ment, must be mailed to the appropriate review officials identified in the [44 FR 63525, Nov. 5, 1979. Redesignated and Postal Service regulations and proce- amended at 63 FR 45719, 45722, Aug. 27, 1998] dures governing intergovernmental review of Postal Service facility project PART 776—FLOODPLAIN AND actions, to the State Historic Preserva- WETLAND PROCEDURES tion Officer, and to local public officials. Subpart A—General Provisions (ii) Any such notice must be published in one or more local newspapers. Sec. 776.1 Purpose and policy. (iii) Any such notice must be posted 776.2 Responsibility. on and near any proposed and alternate 776.3 Definitions. sites for an action. (iv) Any such notice may be mailed Subpart B—Floodplain Management to potentially interested community organizations, including small business 776.4 Scope. associations. 776.5 Review procedures. (v) Any such notice may be mailed to 776.6 Design requirements for construction. 776.7 Lease, easement, right-of-way, or dis- owners and occupants of nearby or af- posal of property to non-federal parties. fected property. (4) A copy of every notice of intent to Subpart C—Wetlands Protection prepare an environmental impact statement must be furnished to the 776.8 Scope. Chief Counsel, Legislative, Law De- 776.9 Review procedures. 776.10 Lease, easement, right-of-way, or dis- partment, who will have it published in posal of property to non-Federal parties. the FEDERAL REGISTER. (b) All notices must give the name, AUTHORITY: 39 U.S.C. 401. address, and telephone number of a SOURCE: 64 FR 56254, Oct. 19, 1999, unless postal official who may be contacted otherwise noted.

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Subpart A—General Provisions a minimum, that area subject to a one percent or greater chance of flooding in § 776.1 Purpose and policy. any given year (also known as a 100- (a) The regulations in this part im- year floodplain). plement the goals of Executive Orders Practicable means capable of being ac- 11990, Protection of Wetlands, and complished within existing constraints. 11988, Floodplain Management, and are The test of what is practicable depends adopted pursuant to the Postal Reorga- on the situation and includes consider- nization Act, as the Postal Service ation of many factors, such as environ- does not meet the definition of the ment, cost, technology, implementa- term ‘‘agency’’ used in the Executive tion time, and postal operational Orders. needs. (b) The Postal Service intends to ex- Preferred area means the specific geo- ercise leadership in the acquisition and graphical area proposed for a new post- management of real property, con- al facility, as developed by the oper- struction of facilities, and disposal of ations organization within the Postal real property, located in floodplains Service. A preferred area’s boundaries and wetlands. Consistent with the are unique for each proposed facility goals of the Executive Orders, the regu- based on the operational and customer lations in this part are not intended to service needs of the Postal Service. prohibit floodplain and wetland devel- Preferred site means the most advan- opment in all circumstances, but rath- tageous site for a proposed facility, er to create a consistent policy to min- taking into consideration postal oper- imize adverse impacts. ational and customer service needs, cost, and availability, as determined by § 776.2 Responsibility. the operations organization within the The appropriate Manager, Facilities Postal Service. Service Office, or functional equivalent Wetlands means those areas that are within the Postal Service’s facilities inundated or saturated by surface or organization, in conjunction with the groundwater at a frequency and dura- appropriate Vice President, Area Oper- tion sufficient to support, and that ations, or functional equivalent within under normal circumstances do sup- the Postal Service’s operations organi- port, a prevalence of vegetation typi- zation, are responsible for overall com- cally adapted for life in saturated soil pliance with the regulations in this conditions. Wetlands generally include part pertaining to facilities projects. swamps, marshes, bogs, and similar The Vice President, Area Operations, is areas. responsible for compliance with these regulations for those projects within the Vice President’s delegated author- Subpart B—Floodplain ity. Management

§ 776.3 Definitions. § 776.4 Scope. Construction means construction, al- (a) The regulations in this subpart terations, renovations, and expansions are applicable to the following proof buildings, structures and improve- posed postal facility actions located in ments. a floodplain: Contending site means a site or exist- (1) New construction, owned or ing building for a proposed postal facil- leased; or ity action, which meets the require- (2) Construction projects at an exist- ments of the Postal Service as deter- ing facility that would increase the mined by the operations organization. amount of impervious surface at the Facility means any building, appur- site. tenant structures, or associated infra- (b) These procedures are not applica- structure. ble to the following postal facility ac- Floodplain means the lowland and rel- tions: atively flat areas adjoining inland and (1) Those actions identified in para- coastal waters including flood-prone graphs (a)(1) and (a)(2) of this section, areas of offshore islands, including, at when the entire preferred area, or all

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contending sites, for such actions lies determined based on the best available within a floodplain; information. (2) Incidental construction, such as (2) Once the preferred site has been construction of athletic fields, rec- identified, potential floodplain impacts reational facilities, sidewalks, and must be determined. As part of this de- other minor alteration projects; termination process, specific floodplain (3) Construction at existing postal fa- information should be developed, which cilities pursuant to the Architectural is to consider: Barriers Act or postal accessibility (i) Whether the proposed action will standards; directly or indirectly support flood- (4) Any facility construction project plain development; deemed necessary to comply with fed- (ii) Flood hazard and risk to lives and eral, state, or local health, sanitary, or property; safety code standards to ensure safe (iii) Effects on natural and beneficial working conditions; floodplain values, such as water qual- (5) Construction of facilities that are ity maintenance, groundwater re- functionally dependent on water, such charge, and agriculture; and as piers, docks, or boat ramps; (iv) Possible measures to minimize (6) Maintenance, repair, or renova- harm to, or impact on, the floodplain. tion of existing facilities; or (d) Reevaluation. After the above steps have been followed, if the deter- (7) Leasing or other use of space for mination is that there appears to be no not more than one year. practicable alternative to constructing § 776.5 Review procedures. in a floodplain, a further review of alternatives must be conducted by the Officials shall follow the decision- facilities organization in conjunction making process outlined in paragraphs with the operations organization re- (a) through (f) of this section, when a questing the construction of the facil- facility action may involve floodplain ity. The further review of alternatives issues. Under certain circumstances, must be conducted by the operations this process may be carried out with organization for projects within the fewer steps if all objectives of the deci- delegated authority of the Vice Presi- sion-making process can be achieved. A dent, Area Operations. general principle underlying this proc- (e) Final public notice. As a result of ess is that a postal facility action re- the reevaluation, if it is determined quiring construction in a floodplain that there is no practicable alternative may be considered only when there is to constructing in a floodplain, public no practicable alternative. notice shall be provided as soon as pos- (a) Analysis of alternatives. If a postal sible for the proposed action. The no- facility action would involve construc- tice should be publicized and should in- tion in a floodplain, alternative actions clude: shall be considered. (1) Identification of the project’s lo- (b) Early public notice. If a facility ac- cation; tion at the contending site(s) could re- (2) Provision for a 30-day public com- quire construction in a floodplain, pub- menting period before irrevocable ac- lic notice must be provided. tion is taken by the Postal Service; (c) Floodplain location and informa- and tion. (1) Personnel shall determine (3) Name and complete address of a whether construction would occur postal contact person responsible for within a floodplain. The determination providing further information on the shall be made by reference to appro- decision to proceed with a facility ac- priate Department of Housing and tion or construction project in a flood- Urban Development (HUD) floodplain plain. Upon request, that person shall maps (sometimes referred to as Flood- provide further information as follows: plain Insurance Rate Maps (FIRM)), or (i) A description of why the proposed Federal Emergency Management Agen- action must be located in a floodplain; cy (FEMA) maps, or more detailed (ii) A listing of alternative actions maps if available. If such maps are not considered in making the determina- available, floodplain location must be tion; and

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(iii) A statement indicating whether (1) Construction of foot and bike the action conforms to applicable state trails, or boardwalks, including signs, and local floodplain protection stand- the primary purposes of which are pub- ards. lic education, interpretation, or enjoy- (f) Distribution. The above public no- ment of wetland resources; tice will be sent to appropriate offi- (2) Construction at existing postal fa- cials, local newspapers, and other par- cilities pursuant to the Architectural ties who express interest in the project. Barriers Act or postal accessibility (g) NEPA coordination. If either an standards; Environmental Impact Statement or (3) Any facility construction project an Environmental Assessment is redeemed necessary to comply with fed- quired under the Postal Service’s Na- eral, state, or local health, sanitary, or tional Environmental Policy Act safety code standards to ensure safe (NEPA) regulations, the above review working conditions; procedures must be incorporated into (4) Construction of facilities that are and evaluated in that document. functionally dependent on water, such as piers, docks, or boat ramps; or § 776.6 Design requirements for construction. (5) Maintenance, repair, or renova- tion of existing facilities. If structures impact, are located in, or support development in a floodplain, § 776.9 Review procedures. construction must conform, at a minimum, to the standards and criteria of (a) Early public notice. If a facility ac- the National Flood Insurance Program tion at the contending site(s) could re- (NFIP), except where those standards quire construction in a wetland, public are demonstrably inappropriate for notice must be provided. postal purposes. (b) Finding of no practicable alternative. The Postal Service shall avoid § 776.7 Lease, easement, right-of-way, construction located in a wetland un- or disposal of property to non-fed- less it issues a finding of no practicable eral parties. alternative. The facilities organiza- When postal property in floodplains tion, in conjunction with the oper- is proposed for lease, easement, right- ations organization, or, for projects of-way, or disposal to non-federal pub- within the delegated authority of the lic or private parties, the Postal Serv- Vice President, Area Operations, the ice shall: operations organization, shall make a (a) Reference in the conveyance doc- written determination that: ument that the parcel is located in a (1) There is no practicable alter- floodplain and may be restricted in use native to such construction; and pursuant to federal, state, or local (2) The proposed action includes all floodplain regulations; or practicable measures to minimize (b) Withhold the property from con- harm to wetlands. veyance. (c) NEPA coordination. If either an Environmental Impact Statement or Subpart C—Wetlands Protection an Environmental Assessment is required under the Postal Service’s Na- § 776.8 Scope. tional Environmental Policy Act (a) The regulations in this subpart (NEPA) regulations, the above review are applicable to the following pro- procedures must be incorporated into posed postal facility actions located in and evaluated in that document. a wetland: (1) New construction, owned or § 776.10 Lease, easement, right-of-way, leased; or or disposal of property to non-fed- (2) Construction projects at an exist- eral parties. ing facility that would alter the exter- When postal-owned wetlands or por- nal configuration of the facility. tions of wetlands are proposed for (b) These procedures are not applica- lease, easement, right-of-way, or dis- ble to the following postal facility ac- posal to non-federal public or private tions: parties, the Postal Service shall:

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(a) Reference in the conveyance doc- suant to federal, state, or local wet- ument that the parcel contains wetlands regulations; or lands and may be restricted in use pur- (b) Withhold the property from conveyance.

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PART 777—RELOCATION ASSIST- § 777.12 Purpose. ANCE AND REAL PROPERTY AC- The purpose of these regulations is to QUISITION POLICIES update policy and procedures for the Postal Service’s voluntary compliance Subpart A—General Policy, Purpose and with the Act. Definitions § 777.13 Definitions. Sec. (a) The Act. The Uniform Relocation 777.11 General policy. Assistance and Real Property Acquisi- 777.12 Purpose. tion Policies Act of 1970 (Pub. L. 91–646; 777.13 Definitions. 84 Stat. 1894). 777.14 Certain indirect actions prohibited. (b) Business. Any lawful activity, except a farm operation, that is: Subpart B—Uniform Relocation Assistance (1) Conducted primarily for the pur- 777.21 General procedures. chase, sale, lease, and/or rental of per- 777.22 Relocation assistance advisory serv- sonal and/or real property, and for the ices. manufacturing, processing, and/or mar- 777.23 Moving expenses. keting of products, commodities, and/ 777.24 Replacement housing payments. or any other personal property; or 777.25 Additional rules for replacement (2) Conducted primarily for the sale housing payments. of services to the public; or 777.26 Mobile homes. (3) Solely for the purposes of reim- 777.27 Last resort housing. bursing moving and related expenses, 777.28 Claims and appeals. conducted primarily for outdoor advertising display purposes, when the dis- Subpart C—Acquisition play(s) must be moved as a result of 777.31 Acquisition procedures. the project; or 777.32 Acquisition of tenant-owned improve- (4) Conducted by a nonprofit organi- ments. zation that has established its non- 777.33 Expenses incidental to transfer of profit status under applicable Federal title to the Postal Service. or State law. (c) Small business. A business having Subpart D—Voluntary Acquisitions at least one but not more than 500 employees working at the location being 777.41 Acquisition procedures. acquired. (d) Comparable Replacement Dwelling. Subpart E—Donations A dwelling which is: 777.51 Acceptance of donations. (1) Decent, safe, and sanitary. (2) Functionally similar to the dis- AUTHORITY: 39 U.S.C. 401. placement dwelling with particular at- SOURCE: 51 FR 6983, Feb. 27, 1986, unless tention to the number of rooms and otherwise noted. living space. (3) In an area that is not subject to Subpart A—General Policy, unreasonably adverse environmental Purpose and Definitions conditions, is not generally less desirable than the location of the displace- § 777.11 General policy. ment dwelling with respect to public utilities and commercial and public fa- It is the policy of the Postal Service cilities, and is reasonably accessible to to comply voluntarily with the provi- the displaced person’s place of employ- sions of the Uniform Relocation Assist- ment. ance and Real Property Acquisition (4) On a site that is typical in size for Policies Act of 1970 (Pub. L. 91–646; 84 residential development with normal Stat. 1894), hereinafter referred to as site improvements including cus- the Act. tomary landscaping. The site need not

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include special improvements such as erty following Postal Service action to outbuildings, fences, swimming pools, obtain title to, or a leasehold interest and greenhouses. in, such real property by the exercise (5) Currently available to the dis- or the threat of the exercise of eminent placed person. domain. (6) Within the financial means of the (ii) A person who is a tenant and who displaced person. is required to move or to move his or (e) Decent, Safe, and Sanitary Dwell- her personal property from real prop- ing. A dwelling which meets local hous- erty: ing and occupancy codes and the fol- (A) Following Postal Service action lowing standards, unless they are to obtain the tenant’s leasehold inter- waived for good cause by the Postal est in such real property by the exer- Service. The dwelling must: cise or the threat of the exercise of (1) Be structurally sound, weather- eminent domain, or, tight, and in good repair. (2) Contain a safe electrical wiring (B) Where the Postal Service ac- system adequate for lighting and other quires a fee interest in the property electrical devices. (including long-term leases of 50 years (3) Contain a heating system capable or more), as a result of a Postal Service of sustaining a healthful temperature notice of displacement or notice to va- of approximately 70 degrees except in cate such real property, provided the those areas where local climatic condi- tenant was lawfully in possession on tions do not require such a system. the date title to such property trans- (4) Be adequate in size with respect fers to the Postal Service. (The re- to the number of rooms and areas of quirement that the tenant occupy such living space needed to accommodate real property on the date title in such the displaced persons. There shall be a real property transfers to the Postal separate, well-lighted and ventilated Service may be waived for good cause bathroom that provides privacy to the by the Postal Service.) user and contains a bathtub or shower (C) Where such real property was stall, sink, and toilet, all in good work- used to construct a new building for ing order and properly connected to ap- the express purpose of leasing to the propriate sources of water and to a Postal Service under circumstances sewage drainage system. In the case of where such tenant would have been a a housekeeping unit—as opposed to, for ‘‘displaced person’’ hereunder had the example, a room in a boarding house— Postal Service itself acquired the land there shall be a kitchen area that con- and required the removal of the tenant tains a fully usable sink, properly con- to undertake construction of the build- nected to potable hot and cold water ing for Postal Service ownership. and to a sewage draining system, and (iii) Where the Postal Service ac- adequate space and utility service con- nections for a stove and a refrigerator. quires either a fee interest or a lease- (5) Contain unobstructed egress to hold interest in the property, a person safe, open space at ground level. who is a residential tenant and is or (6) For displaced persons who are will be required to move or to move his handicapped, be free of any barriers or her property from the real property, which would preclude their reasonable in order for the Postal Service to ac- ingress, egress, or use of the dwelling. complish the project for which the (f) Displaced Person. (1) Subject to the property was acquired, provided such additional definitions, limitations and tenant occupies such real property on exceptions in paragraph (f)(2) of this the date title in such real property section, the term ‘‘displaced person’’ is transfers to the Postal Service or the defined as follows. (‘‘Displaced per- date the Postal Service leases or con- sons’’ are entitled to receive benefits tracts to lease such property, and fur- only as specifically provided for else- ther provided such tenant was lawfully where in these regulations.) in possession at the time of the initi- (i) A person who owns real property, ation of negotiations. (The require- and who is required to move or to move ment that the tenant occupy such real personal property from the real prop- property on the date title in such real

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property transfers to the Postal Serv- prevailing market conditions is not ice may be waived for good cause by considered to be a displaced person. the Postal Service.) (viii) A mobile home occupant who (2) The term ‘‘displaced person’’ cov- owns the site on which the mobile ers only persons meeting the require- home is located and who voluntarily ments in paragraph (f)(1) of this sec- sells the site to the Postal Service, re- tion. The term ‘‘displaced person’’ does gardless of whether such person owns not cover the following non-exclusive or rents the mobile home. list of examples. (ix) A person whose property is ac- (i) An owner who voluntarily sells his quired through a ‘‘friendly condemna- or her real property to the Postal Serv- tion action’’ where price is not an ice, or, issue. (ii) A tenant who voluntarily trans- (g) Displacement Dwelling. The dwell- fers his or her leasehold interest to the ing acquired by the Postal Service Postal Service without the exercise or from which a displaced person is re- the threat of the exercise of eminent quired to move. domain, or, (h) Dwelling. The place of permanent (iii) A tenant who is not lawfully in or customary and usual residence of a possession at the times for which law- person including a single family house; ful possession is specified in paragraphs a single family unit in a two-family, (f)(1)(ii)(B) and (f)(1)(iii) of this section. multi-family, or multi-purpose prop- A tenant who was legally required by erty; a unit of a condominium or coop- the lease or otherwise to have moved erative housing project; a non-house- from the property at the times speci- keeping unit (i.e. room in a boarding fied in such paragraphs shall not be house); a mobile home; or any other considered to be lawfully in possession. residential unit. (iv) A person who, at the determina- (i) Family. Two or more individuals tion of the Postal Service, is not re- who are related by blood, adoption, quired to relocate permanently, or, marriage, or legal guardianship who (v) A person who, after receiving a live together as a family unit. If the notice of displacement or notice to va- Postal Service considers that cir- cate by the Postal Service, is notified cumstances warrant, others who live in writing that he or she will not be together as a family unit may be treat- displaced. Such later notification shall ed as if they are a family for the pur- not be issued if the person has already pose of determining assistance under moved. If such latter notification is these regulations. issued, the Postal Service shall reim- (j) Farm Operation. Any activity con- burse the person for any reasonable ex- ducted solely or primarily for the pro- penses incurred to satisfy any binding duction of one or more types of agricul- contractual relocation obligations en- tural products or commodities, includ- tered into after the effective date of ing timber, for sale or home use, and the notice of displacement or the no- customarily producing such products tice to vacate or, or commodities in sufficient quantity (vi) A person who is required to tem- to be capable of contributing materi- porarily vacate the premises in order ally to the operator’s support. to permit fumigation, repair, painting, (k) Financial Means. A comparable re- or other maintenance or code of en- placement dwelling is within the finan- forcement work or, cial means of the displaced family or (vii) A tenant who is required to individual if the average monthly rent- move from real property as a result of al or housing cost (e.g., monthly mort- a notice from the Postal Service to va- gage payments, insurance for the cate such real property where such no- dwelling unit, property taxes, and tice to vacate is issued five years or other reasonable recurring related ex- more after the date of the acquisition penses) which the displaced person will of such real property. A tenant who is be required to pay does not exceed the given a notice to vacate as a result of greater of 25 percent of the monthly failure to comply with the terms of his/ gross income of the displaced family or her lease with the Postal Service or individual or the ratio of the present failure to renew his/her lease under monthly rental or housing cost to the

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gross income of the displaced family or (p) Person. Any individual, family, individual. (Supplemental payments partnership, corporation, association, made by public agencies are to be in- business or farm operation. cluded in gross income for purposes of (q) Personal Property. Any tangible these comparisons.) property, not considered part of the (l) Initiation of Negotiations. In the real property, for which payment has case where eminent domain is neither not been included in the acquisition exercised nor threatened to be exer- cost. cised, the initiation of negotiations is (r) Tenant. A person who has the the initial written communication legal right to temporary use and occu- stating a price by the owner or the pancy of real property owned by an- owner’s representative to the Postal other. In some cases, these regulations Service, or by the Postal Service to the also use the term ‘‘tenant’’ to refer to owner or the owner’s representative, a person who occupies real property regarding a proposed acquisition (by owned by another but whose legal right purchase or lease) or an interest in a was terminated due to a timely notice specific piece of real property. In the to vacate the real property used and case where eminent domain is either occupied. exercised or threatened to be exercised, the initiation of negotiations is the [51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10666, Mar. 15, 1989] date the Postal Service makes a written offer of just compensation. § 777.14 Certain indirect actions pro- (m) Notice of Displacement. A notice hibited. given in writing by the Postal Service Postal employees shall take no indi- to a person that he or she will be dis- rect, coercive, or deceptive actions to placed from his or her place of resi- cause persons to move from real prop- dence, business or farm, as a result of erty in an effort to avoid the cir- a facility action by the Postal Service. cumstances under which such persons A notice of displacement may be com- would be eligible to receive relocation bined with or in a notice to vacate. benefits as displaced persons under (n) Notice to Vacate. A notice given in these regulations. If a claimant dem- writing by the Postal Service to a per- onstrates that such prohibited action son that he or she is to vacate postal caused him or her to move, he or she owned property on or before a certain will be treated as a displaced person date. A notice to vacate may be com- hereunder, if he or she otherwise meets bined with or in a notice of displace- the definition of a displaced person. ment. (o) Owner of Displacement Dwelling. A person is considered to be an owner, if, Subpart B—Uniform Relocation at the initiation of negotiations, the Assistance person holds any of the following interests in real property acquired for a § 777.21 General procedures. postal project: (a) Planning Prior to Site Selection. (1) Fee title, a life estate, a 99-year When acquisition of a site under con- lease, or a lease, including any options sideration would likely involve dis- for extension, with at least 50 years to placement of a person eligible under run from the date of acquisition; or § 777.13 for relocation assistance, the (2) An interest other than leasehold Postal Service representative shall pre- interest in a cooperative housing pare a relocation needs and avail- project which includes the right to oc- ability analysis. The Postal Service cupy a dwelling; or representative shall include in the (3) A contract to purchase any of the analysis a complete inventory of per- interests or estates described in para- sons who may be displaced and specifi- graph (o)(1) or (o)(2) of this section; or cally identify their needs. (4) Any other interest, including a (b) Planning Subsequent to Site Selec- partial interest, which in the judgment tion. Subsequent to site selection, the of the Postal Service, warrants consid- Postal Service must review the reloca- eration as ownership. tion needs and availability analysis

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and establish a specific plan for proof contracting or between the time of viding the assistance covered by these contracting and the time of acquisition regulations to any eligible displaced if the Postal Service considers it wise persons. It will further determine the to start the displacement process then necessity of establishing an on-site re- and if, in the judgment of the Postal location office which would be acces- Service, it is clear that person will in sible to displaced persons and would be fact be a displaced person. staffed with relocation personnel quali- (g) Notice of Availability of Advisory fied to render all relocation services. Services. The notice of displacement The Postal Service will assure that will state that relocation assistance cost estimates reflect current market advisory services will be available to conditions and that funding is avail- the displaced person and will designate able for all relocation assistance and who will provide such services. activities. (h) Eviction for cause. Any person oc- (c) Contracting for Relocation Services. cupying real property and not in un- When the Postal Service determines it lawful occupancy on the date of initi- to be advantageous, it may enter into a ation of negotiations is presumed to be relocation assistance service contract entitled to relocation payments and with a public agency or private firm other assistance unless the Postal having expertise in relocation assist- Service determines that: ance. The contract must require the (1) The person received an eviction contractor to follow Postal Service re- notice prior to initiation of negotia- location assistance regulations. tions and, as a result of that notice, is (d) Notice to Vacate, Ninety Day Re- later evicted; or quirement. Postal Service notices to va- (2) The person is evicted after initi- cate must be issued at least 90 days ation of negotiations for serious or re- prior to the date the property must be peated violation of material terms of vacated. Any such notice must be in the lease or occupancy agreement; and writing and delivered in person with re- (3) In either case the eviction is not ceipt acknowledged, or by certified undertaken for the purpose of evading mail, return receipt requested. The 90- the obligation to make the relocation day requirement does not apply to any payments and other assistance avail- such notice issued subsequent to a able. valid notice to vacate issued by the prior owner of the property. A 90-day [51 FR 6983, Feb. 27, 1986, as amended at 54 notice may be given with, or such no- FR 10667, Mar. 15, 1989] tice may be combined with, but such notice must not be given before, the § 777.22 Relocation assistance advisory services. notice of displacement referred to in paragraph (f) of this section. (a) General. The Postal Service car- (e) Shorter Notice Period, Unusual Cir- ries out an advisory assistance pro- cumstances. An occupant may be re- gram for displaced persons. quired to vacate the property on less (b) Relocation Information. The Postal than 90 days advance written notice if Service must contact each displaced the Postal Service determines that a person to provide an informational 90-day notice is impracticable. An ex- statement outlining the assistance ample of such a situation is when the available to the particular person. If it person’s continued occupancy of the is impracticable to contact the dis- property would constitute a substan- placed persons personally, the informa- tial danger to the person’s health or tional statement must be mailed to the safety. persons, certified mail, return receipt (f) Notice of Displacement. Normally, a requested. notice of displacement will be given at (c) Time of Initial Contact to Provide the time of acquisition or later. Such Relocation Information. The initial con- notice must not be given earlier than tact to provide relocation information the time of contracting, except in the must take place by the following dates: case of acquisitions by eminent domain (1) Where acquisition of the property or by the threat of eminent domain. is to occur as a result of the exercise or Such notice may be given at the time the threat of the exercise of eminent

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domain, at the time of initiation of ne- offered transportation to inspect hous- gotiation or within 30 days thereafter. ing to which they are referred. (2) In any other instance such con- (3) Provide current and continuing tact must be made prior to acquisition information on the availability, pur- and prior to the notice of displacement chase prices, and rental costs of com- or the notice to vacate, but it should parable and suitable commercial and normally not be made prior to con- farm properties and locations, and as- tracting for the acquisition. sist any person displaced from a busi- (d) Service to be Provided. The advi- ness or farm operation to obtain and sory program shall include such serv- become established in a suitable re- ices as may be necessary or appropriate placement location. to: (4) Minimize hardships to displaced (1) Provide current information on persons in adjusting to relocation by the availability, purchase prices, fi- providing counseling, advice about nancing, and rental costs of replace- other sources of assistance that may be ment dwellings. available, and such other help as may be appropriate. (2) For displaced persons eligible for (5) Supply displaced persons with ap- replacement housing payments, ex- propriate information concerning Fed- plain that the displaced person cannot eral, State, and local housing pro- be required to move unless at least one grams, disaster loan and other pro- comparable replacement dwelling is grams administered by the Small Busi- made available. ness Administration, and other Fed- (i) At the request of the displaced eral, State, and local programs offering person, the Postal Service must inform assistance to displaced persons. that person, in writing, of the specific (6) Upon selection of a replacement comparable replacement dwelling used property by a displaced person, the as the basis for the replacement hous- Postal Service may arrange for a rep- ing payment offer, the price or rent resentative to assist the displaced per- used to establish the upper limit of son with necessary arrangements for that offer, the basis for the determina- the move. tion, and the amount of the replacement housing payment to which he or § 777.23 Moving expenses. she may be entitled. (a) Eligibility. (1) Residential dis- (ii) Where feasible, housing must be placed persons are entitled to benefits inspected by the Postal Service rep- under paragraphs (b) and (c) of this sec- resentative prior to its being made tion. available to assure that it is a com- (2) Business and farm displaced per- parable replacement dwelling and sons are entitled to benefits under meets the decent, safe, and sanitary paragraphs (d) through (k) of this sec- standard. The displaced person must be tion. notified that a replacement housing (3) Those business or farm displaced payment will not be made unless the persons who reside on the property replacement dwelling is inspected and where the business or farm operation is determined to be decent, safe, and sani- conducted are eligible for applicable tary. benefits both as residents and as busi- (iii) Whenever possible, minority dis- ness or farm displaced persons, but no placed persons must be given reason- duplicate payments are allowed. able opportunities to relocate to com- (4) Persons who are required to move parable dwellings, not located in an or to move personal property from real area of minority concentration, that property, an interest in which is not are within their financial means. This acquired by the Postal Service, when it policy, however, does not require the is determined by the Postal Service Postal Service to provide a person a that such move is necessary or reason- larger payment than is necessary to able because of the Postal Service’s enable that person to relocate to a having acquired an interest in other comparable replacement dwelling. real property owned or leased by such (iv) All displaced persons, especially persons and on which such persons con- the elderly and handicapped, must be duct a business or farm operation,

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under circumstances where such per- lated expenses. This allowance shall be sons are displaced persons with regard determined according to the applicable to such other real property or would schedule approved by the Federal High- have been displaced persons with re- way Administration. This includes a gard to such other real property had provision that the expense and disloca- they been required to move or to move tion allowance to a person with mini- personal property from such other real mal personal possessions who is in oc- property, are entitled to benefits as cupancy of a dormitory style room residential, business or farm displaced shared by two or more other unrelated persons under paragraphs (a)(1) or (a)(2) persons or a person whose residential of this section. move is performed by an agency at no (5) Eligibility for moving expenses cost to the person shall be limited to does not depend upon the owner’s or $50. tenant’s actual occupancy of the dis- (d) Allowable Expenses, Business and placement real property. Farm Operations. Allowable expenses in- (b) Allowable Expenses, Residential clude: Moves. Allowable moving expenses in- (1) The expenses allowed under para- clude: graphs (b) (2), (4), (5) and (6) of this sec- (1) Transportation of the displaced tion; person and his or her personal prop- (2) Transportation of personal property. Transportation costs are limited erty. Transportation costs are limited to the costs of a move up to a distance to a distance up to 50 miles unless the of 50 miles unless the Postal Service Postal Service makes a finding that re- determines that relocation beyond 50 location beyond 50 miles is justified. miles is justified. (3) Disconnecting, dismantling, re- (2) Packing, crating, unpacking, and moving, reassembling, and reinstalling uncrating of the personal property. relocated machinery, equipment, and (3) Disconnecting, dismantling, re- other personal property, and substitute moving, reassembling, and reinstalling personal property as described in para- relocated household appliances and graph (d)(8) of this section. This in- other personal property. cludes connection to utilities available (4) Storage of the personal property at the replacement site or building and not to exceed 12 months unless the minor modifications to personal prop- Postal Service determines that a erty to adapt it to the replacement site longer period is necessary. or building. Excluded are expenses for (5) Reasonable costs for insurance for providing utilities to or installing util- the replacement value of the personal ities at the replacement site or build- property being moved or stored. ing and expenses for repair, alteration, (6) When determined to be fair and improvement or modification of the re- reasonable by the Postal Service the placement site or building. This exclu- replacement value of property lost, sto- sion includes, but is not limited to, any len, or damaged in the process of mov- repairs, alterations, improvements, or ing (not through the fault or neg- modifications required by local code to ligence of the displaced person, his or bring the building up to standard. her agent, or employee), but only (4) Any license, permit, or certifi- where insurance covering such loss, cation fee required of the displaced per- theft, or damage is not reasonably son by a governmental authority at the available. replacement location. However, this (7) Other moving related expenses payment is limited to the pro rata that are not listed as non-allowable value for the remaining useful life of under paragraph (l)(3) of this section any existing license, permit, or certifi- and which the Postal Service deter- cation. mines to be reasonable and necessary. (5) Reasonable professional services (c) Fixed payment for moving expenses. necessary for planning the move of the residential moves. Any person displaced personal property. Such professional from a dwelling or a seasonal residence services must be approved in advance is entitled to receive an expense and by the Postal Service and shall not ex- dislocation allowance as an alternative ceed the lowest of three acceptable to a payment for actual moving and re- bids.

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(6) Relettering signs and replacing home, time spent searching (based on stationary on hand at the time of dis- reasonable salary or earnings) and fees placement that are made obsolete as a paid to a real estate agent or broker to result of the move. locate a replacement site, exclusive of (7) Actual direct loss of tangible per- any fees or commissions related to the sonal property incurred as a result of purchase of such site. moving or discontinuing the business (10) Other moving-related expenses, or farm operation. The payment will not listed as non-allowable under para- consist of the reasonable costs incurred graph (l)(3) of this section, which the in attempting to sell the item plus the Postal Service determines to be rea- lesser of: sonable and necessary. (i) The fair market value of the item (e) Fixed Payment in Lieu of Moving for continued use at the displacement Expenses, Business Moves. Any displaced site, less the proceeds from its sale. (To business, other than an outdoor adver- be eligible for this payment the claim- tising display business, or a non-profit ant must make a good faith effort to organization, is eligible for a fixed pay- sell the personal property, unless the ment in lieu of actual moving and re- Postal Service determines that such ef- lated expenses. This payment must be fort is not necessary. When payment in an amount equal to the average an- for property loss is claimed for goods nual net earnings of the business at held for sale, the fair market value that location, as computed under para- must be based on the cost of the goods graph (i) of this section, but not less to the business, not the potential sell- than $1,000 nor more than $20,000. For a ing price.); or displaced person to qualify for this (ii) The estimated cost of moving the payment, the Postal Service must de- item no more than 50 miles, but with termine that: no allowance for storage. (1) The business owns or rents per- (8) If an item of personal property sonal property which must be moved in which is used as part of a business or connection with such displacement and farm operation is not moved, is promptly replaced with a substitute for which an expense would be incurred item that performs a comparable func- in such move; and, the business vacates tion at the replacement site, the dis- or relocates from its displacement site; placed person is entitled to payment of and the lesser of: (2) The business cannot be relocated (i) The cost of the substitute item, without a substantial loss of its exist- including installation costs at the re- ing patronage (clientele or net earn- placement site, less any proceeds from ings). A business is assumed to meet the sale. (To be eligible for payments this test unless the Postal Service de- under paragraph (d)(8) of this section, termines that it will not suffer a sub- the claimant must make a good faith stantial loss of its existing patronage; effort to sell the personal property, un- and less the Postal Service determines that (3) The business is not part of a com- such effort is not necessary.) mercial enterprise having more than (ii) The estimated cost of moving and three other entities which are not reinstalling the replaced item, based being acquired by the Postal Service, on the lowest acceptable bid or esti- and which are under the same owner- mate obtained by the Postal Service ship and engaged in the same or simi- for eligible moving and related ex- lar business activities. penses, but with no allowance for stor- (4) The business contributed materi- age. ally to the income of the displaced per- (9) A displaced business or farm oper- son during the 2 taxable years prior to ation is entitled to reimbursement for displacement (see paragraph (h) of this actual expenses, not to exceed $1,000, section). However, the Postal Service which the Postal Service determines to may waive this test for good cause. be reasonable and which are incurred (5) The business is not operated at a in searching for a replacement loca- displacement dwelling solely for the tion. These expenses include transpor- purpose of renting such dwelling to tation, meals and lodging away from others.

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(f) Determining the Number of Busi- (2) Had average annual net earnings nesses. In determining whether two or of at least $1,000; or more displaced legal entities con- (3) Contributed at least 331⁄3 percent stitute a single business which is enti- of the owner’s or operator’s average an- tled to only one fixed payment, all per- nual gross income from all sources. tinent factors shall be considered, in- (4) If the application of the above cri- cluding the extent to which: teria creates an inequity or hardship in (1) The same premises and equipment any given case, the Postal Service may are shared; approve the use of other criteria as de- (2) Substantially identical or inter- termined appropriate. related business functions are carried (i) Average Annual Net Earnings of a out and business and financial affairs Business or Farm Operation. The average are commingled; annual net earnings of a business or (3) The entities are held out to the farm operation are one-half of its net public, and to those customarily deal- earnings before Federal, State, and ing with them, as one business; and local income taxes during the 2 taxable years immediately prior to the taxable (4) The same person or closely related year in which it was displaced. If the persons own, control, or manage the af- business or farm was not in operation fairs of the entities. for the full 2 taxable years prior to dis- (g) Fixed Payment in Lieu of Moving placement, net earnings shall be based Expenses, Farm Operation. Any dis- on the actual period of operation at the placed farm operation may choose a displacement site during the 2 taxable fixed payment in lieu of a payment for years prior to displacement, projected actual moving and related expenses in to an annual rate. Average annual net an amount equal to its average annual earnings may be based upon a different net earnings as computed in accord- period of time when the Postal Service ance with paragraph (i) of this section, determines it to be more equitable. Net but not less than $1,000 nor more than earnings include any compensation ob- $20,000. For a displaced person to qual- tained from the business or farm oper- ify for this payment, the Postal Serv- ation by its owner, the owner’s spouse, ice must determine that the farm oper- and dependents. The displaced person ation contributed materially to the in- shall furnish the Postal Service proof come of the displaced person during the of net earnings through income tax re- two taxable years prior to the displace- turns, certified financial statements, ment (see paragraph (h) of this sec- or other reasonable evidence which the tion). In the case of acquisition of land Postal Service determines is satisfac- which was part of a farm operation be- tory. fore the acquisition, the fixed payment (j) Nonprofit Organizations. Any dis- shall be made only if the Postal Serv- placed nonprofit organization may ice determines that: choose a fixed payment in lieu of a pay- (1) The acquisition of part of the land ment for actual moving and related ex- caused the operator to be displaced penses in an amount of $2,500, if the from the operation on the remaining Postal Service determines that it: land; or (1) Cannot be relocated without a (2) The partial acquisition caused a substantial loss of existing patronage substantial change in the nature of the (membership or clientele). A nonprofit farm operation. organization is assumed to meet this (h) Contributes materially. The term test, unless the Postal Service dem- ‘‘contributes materially,’’ as used in onstrates otherwise; and paragraphs (e) and (g) of this section (2) Is not part of an enterprise having means that, during the 2 taxable years at least one other establishment en- prior to the taxable year in which dis- gaged in the same or similar activity placement occurs, or during such other which is not being acquired by the period as the Postal Service deter- Postal Service. mines to be more equitable, a business (k) Relocation of Outdoor Advertising or farm operation: Signs. The amount of a payment for di- (1) Had average annual gross receipts rect loss of an advertising sign which is of at least $5,000; or personal property is the lesser of:

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(1) The depreciated replacement cost (xi) Increased costs of operation dur- of the sign, as determined by the Post- ing the first two years at the replace- al Service, less the proceeds from its ment site, not to exceed $5,000, for such sale; (To be eligible for payments under items as lease or rental charges, per- this paragraph (k)(1), the claimant sonal or real property taxes, insurance must make a good faith effort to sell premiums, utility charges including the sign, unless the Postal Service de- impact fees or one time assessments termines that such effort is not nec- for anticipated heavy utility usage. essary.) or (xii) Other items that the Postal (2) The estimated cost of moving the Service considers essential to the rees- sign, no more than 50 miles, but with tablishment of the business. no allowance for storage. (2) Non-allowable expenses. Following (l) Payment for actual reasonable rees- is a non-exclusive listing of tablishment expenses, nonresidential restablishment expenditures not con- moves. In addition to the payments sidered to be reasonable, necessary or available as allowable expenses for otherwise allowable. nonresidential moves, a small business, (i) Purchase of capital assets such as farm or non-profit organization may be office furniture, filing cabinets, ma- eligible to receive a payment, not to chinery, or trade fixtures. exceed $10,000 for expenses actually in- (ii) Purchase of manufacturing mate- curred in relocating and reestablishing rials, production supplies, product in- such small business, farm or non-profit ventory, or other items used in the organization at a replacement site. normal course of the business oper- (1) Allowable expenses. Reestablish- ation. ment expenses must be reasonable and (iii) Interior or exterior refurbish- necessary, as determined by the Postal ment at the replacement site which are Service. They may include the fol- for cosmetic purposes only. lowing: (iv) Interest on money borrowed to (i) Repairs or improvements to the make the move or purchase the re- replacement real property as required placement property. by federal, state, local law, code or or- (v) Payment to a part-time business dinance. in the home which does not contribute (ii) Modifications to the replacement materially to the household income. property to accommodate the business (vi) Payment to a person whose sole operation or make replacement struc- business at a replacement dwelling is tures suitable for occupancy. the rental of such dwelling to others. (iii) Construction and installation (m) General Provisions—(1) Self moves. costs not to exceed $1,500 for exterior If the displaced person elects to take signing to advertise the business. full responsibility for all or a part of (iv) Installation of security or fire the move, the Postal Service may ap- protection devices. prove a payment for the person’s mov- (v) Provision of utilities from right- ing expenses in an amount not to ex- of-way to improvements on the re- ceed the lowest of three bids acceptable placement site. to the Postal Service. Bids may be ob- (vi) Redecoration or replacement of tained by either the displaced person or soiled or worn surfaces at the replace- the Postal Service. ment site, such as paint, panelling or (2) Transfer of Ownership. Upon re- carpeting. quest by the Postal Service and in ac- (vii) Licenses, fees and permits when cordance with applicable law, the dis- not paid as part of the moving ex- placed person may transfer to the Post- penses. al Service ownership of any personal (viii) Feasibility surveys, soil testing property that is not to be moved, sold, and marketing studies. or traded-in by executing a disclaimer (ix) Advertisement of replacement lo- of all rights or interest in the property. cation, not to exceed $1,500 (3) Non-Allowable Expenses. Except as (x) Professional services in connec- specifically otherwise provided herein, tion with the purchase or lease of a re- a displaced person is not entitled to placement site. payment for:

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(i) The cost of moving any structure ment dwelling to provide a total or other real property improvement. amount equal to the lesser of: (ii) Loss of goodwill. (A) The reasonable cost of a com- (iii) Loss of profits. parable replacement dwelling as deter- (iv) Loss of trained employees. mined by paragraph (c) of this section; (v) Any additional operating expenses or of a business or farm operation caused (B) The purchase price of a decent, by operating in a new location. safe and sanitary replacement dwelling (vi) Personal injury. actually purchased and occupied by the (vii) Any legal fee or other cost for displaced person; plus preparing a claim for a relocation pay- (ii) Interest Cost (see paragraph (d) of ment or for representing the displaced this section); plus person before the Postal Service. (iii) Incidental Expenses (see para- (viii) Expenses for searching for a re- graph (h) of this section). placement dwelling. (2) The benefits in paragraph (b)(1) of (ix) Costs for storage of personal this section, are limited to a maximum property on real property owned or payment of $22,500. leased by the displaced person. (3) The benefits in paragraph (b)(1) of this section, are available only if a de- [51 FR 6983, Feb. 27, 1986, as amended at 52 cent, safe and sanitary replacement FR 48029, Dec. 17, 1987; 54 FR 10667, Mar. 15, dwelling is purchased within 12 months 1989] after the latter of: (i) The date of acquisition or, in the § 777.24 Replacement housing payments. case of condemnation, the date the required amount is deposited in a court (a) Residential displaced persons are for the displaced person’s benefit, or eligible for replacement housing pay- (ii) The date the person moves from ments as follows: the displacement dwelling. (1) Residential displaced persons who (c) Determining the Cost of a Com- lawfully and continuously owned and parable Replacement Dwelling. The cost occupied a displacement dwelling for of a comparable replacement dwelling not less than 180 days prior to the initi- for purposes of benefits to be paid to ation of negotiations are entitled to 180 day owner occupants will be deter- the benefits set out in paragraph (b) of mined by applying the following: this section. Such displaced persons (1) If available, at least three rep- may alternately choose the benefits resentative comparable replacement under paragraph (f) of this section. dwellings must be examined and the (2) Residential displaced persons who payment offer computed on the cost of lawfully and continuously owned and the fair market value of the dwelling occupied, and residential displaced per- most closely comparable to the dis- sons who were tenants and lawfully and placement dwelling. continuously occupied, a displacement (2) To the extent, feasible, com- dwelling for not less than 90 days prior parable replacement dwellings will be to the initiation of negotiations are en- selected from the neighborhood in titled to the benefits set out in para- which the displacement dwelling was graph (e) of this section. located. If this is not possible, com- (3) Where the replacement housing parable replacement dwellings will be payment provided hereunder does not selected from nearby or similar neigh- provide for housing within the finan- borhoods where housing costs are simi- cial means (see § 777.13(j)) of the dis- lar. placed person, see § 777.27, Last Resort (d) Increased Mortgage Interest Costs. Housing. The amount to be paid to a displaced (b) Benefits for 180 Day Owner Occu- 180 day owner occupant for increased pants. Displaced persons eligible under mortgage interest costs is the amount, paragraph (a)(1) of this section are en- if any, by which the present value of titled to benefits as set out below: the interest on the mortgage loan(s) on (1) An amount which is the sum of: the replacement dwelling plus any (i) The amount which must be added other debt service costs exceeds the to the acquisition cost of the displace- present value of the interest on the

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mortgage loan(s) on the displacement itary replacement dwelling is pur- dwelling plus purchaser’s points and chased or rented within 12 months loan origination fees, subject to the after the latter of: following: (i) The date of acquisition or, in the (1) The payment must be based only case of condemnation, the date the re- on bona fide mortgages that were a quired amount is deposited in the court valid lien on the displacement dwelling for the displaced person’s benefit, or for at least 180 days prior to the initi- (ii) The date the person moves from ation of negotiations. All such mort- the displacement dwelling. gages on the displacement dwelling (f) Rental Assistance. The rental as- must be used to compute the payment. sistance benefits, not to exceed $5,250, (2) The payment must be based on for 90 day owner occupants and tenants the unpaid mortgage balance on the will be computed as follows: displacement dwelling or the new (1) The amount which must be added mortgage amount, whichever is less. to 42 times the average monthly rental (3) The payment must be based on paid at the displacement dwelling (or, the remaining term of the mortgage on if the displaced person is an owner oc- the displacement dwelling or the ac- cupant, the fair market rental value tual term of the new mortgage, which- had the displacement dwelling been ever is shorter. rented) for the three-month period (4) The new mortgage must be a bona prior to displacement to provide a total fide mortgage and its interest rate amount equal to the lesser of: must not exceed the prevailing interest (i) 42 times the reasonable monthly rate currently charged by mortgage rental of a comparable replacement lending institutions in the area in dwelling; or which the replacement dwelling is lo- (ii) 42 times the actual monthly rent- cated. al cost of the decent, safe, and sanitary (5) The discount rate used to compute dwelling actually rented and occupied the present value of the increased in- by the displaced person. terest cost must be the prevailing in- (2) If utilities are included in either terest rate paid on demand savings de- the replacement dwelling or the dis- posits by commercial banks in the area placement dwelling rent, appropriate in which the replacement dwelling is utilities must be factored into both located. rentals. If utilities are not included in (6) Purchaser’s points and loan origi- either monthly rental then the pay- nation fees, but not seller’s points, are ment will be computed using the base reimbursable to the extent they are rental rates. not paid as incidental expenses, they (3) If, in the opinion of the Postal do not exceed rates normal to similar Service, the monthly rental at the dis- real estate transactions in the area, placement dwelling is significantly and the Postal Service determines below the fair market rent of the dis- them to be necessary. The computation placement dwelling, such fair market of such points and fees shall be based rent must be used in computing the on the unpaid mortgage balance on the rental assistance payment. displacement dwelling, or the new (4) The payment under this section mortgage amount, whichever is less. must be disbursed in a lump-sum (e) Benefits for 90 Day Owner Occupant amount unless the Postal Service de- and Tenants. Displaced persons eligible termines on a case-by-case basis, for under paragraph (a)(2) of this section good cause, that the payment should be are entitled to benefits as set out made in installments. Where the rental below: assistance payment exceeds $5,250 (1) Rental assistance benefits, as set under the provisions of Last Resort out in paragraph (f) of this section or Housing, (§ 777.27), installment pay- downpayment assistance benefits, as ments or payments through escrow ac- set out in paragraph (g) of this section. counts may be considered. (2) The benefits in paragraph (e)(1) of (g) Downpayment assistance. Down- this section, are limited to $5,250. payment assistance, not to exceed (3) The benefits in (e)(1) above are $5,250, is available to 90 day owner oc- available only if a decent, safe and san- cupants and 90 day tenants. This $5,250

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amount may be considered to include (b) Multiple Occupants of One Dis- the full amount of the required down- placement Dwelling. If two or more oc- payment and incidental expenses. cupants of the displacement dwelling (h) Incidental Expenses. Incidental ex- move to separate replacement dwell- penses covered under paragraph ings, each occupant is entitled to a rea- (b)(1)(iii) or (g) of this section are those sonable prorated share, as determined reasonable costs actually incurred by by the Postal Service, of any reloca- the displaced person incident to the tion payments that would have been purchase of a replacement dwelling and made if the occupants moved together customarily paid by the buyer (not to to a comparable replacement dwelling. exceed the costs of such for a com- However, if the Postal Service deter- parable replacement dwelling). They mines that two or more occupants include: maintained separate households within (1) Legal, closing, and related costs, the same dwelling, such occupants including those for title search and in- have separate entitlements to reloca- surance, preparing conveyance instruments, notary fees, preparing surveys tion payments. and plats, and recording fees. (c) Mixed Use and Multi-Family Prop- (2) Lender, FHA, or VA appraisal erties Acquired. If the displacement fees. dwelling was part of a property that (3) FHA or VA application fee. contained another dwelling unit or (4) Certification of structural sound- space used for non-residential purposes, ness when required by the lender. or if it is located on a lot larger than (5) Credit report. that typical for residential purposes, (6) Owner’s and mortgagee’s evidence only that portion of the acquisition or assurance of title. payment which is actually attributable (7) Escrow agent’s fee. to the displacement dwelling and site (8) State revenue or documentary can be considered its acquisition cost stamps, sales or transfer taxes. when computing the price differential. (9) Such other costs as the Postal (d) Disaster-Related Insurance Pro- Service determines to be incidental to ceeds. To the extent necessary to avoid the purchase. duplicate compensation, the amount of any insurance proceeds received by a [51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987] person in connection with a disaster related loss to the displacement dwelling § 777.25 Additional rules for replace- must be included in the acquisition ment housing payments. cost of the displacement dwelling when (a) Multiple Owners. When a single computing the price differential. family dwelling is owned by more than (e) Inspection of Replacement Dwelling. one person and occupied by only some Before making a replacement housing of the 180 day owners (for example, payment or releasing a payment from when the dwelling is owned by an es- escrow, the Postal Service must in- tate and only one of the heirs is in oc- spect the replacement dwelling and de- cupancy), the occupant(s) is (are) eligi- termine that it is a decent, safe, and ble to receive a maximum total price sanitary dwelling. differential which is the lesser of: (f) Purchase of Replacement Dwelling. (1) The difference between (i) the rea- A displaced person is considered to sonable cost of a comparable replace- have met the requirement to purchase ment dwelling, as determined under a replacement dwelling if the person § 777.24(c) and (ii) the acquisition cost has purchased an existing dwelling; of the displacement dwelling; or purchased and rehabilitated or moved (2) The difference between (i) the oc- and restored an existing dwelling; or cupant’s share of the acquisition cost constructed a new dwelling, provided in of the displacement dwelling and (ii) each instance the dwelling is deter- the purchase price of a decent, safe, mined to be decent, safe and sanitary. and sanitary replacement dwelling actually purchased and occupied by the displaced person.

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(g) Conversion of Payment. A displaced (3) Additional costs, if necessary, in- person who initially rents a replace- curred to make the unit a decent, safe, ment dwelling and receives a rental as- and sanitary replacement dwelling; and sistance payment may, within the re- (4) The cost of the replacement site, quired 12 month eligibility period, pur- not to exceed the cost of a comparable chase a decent, safe and sanitary re- available and suitable replacement placement dwelling. In such case, he or site. she is eligible to revise his or her origi- (j) 90 Day Owner/Retention of Displace- nal claim, and claim any additional as- ment Dwelling. A 90 day owner occupant sistance for which he or she was origi- who retains ownership of his or her nally eligible. However, any portion of dwelling or the right to remove his or the rental assistance payment that has her dwelling may receive the benefits been disbursed must be deducted from as if he or she were a 180 day owner oc- the resultant replacement housing pay- cupant subject, however, to a limita- ment or downpayment assistance pay- tion of $5,250 on maximum benefits in ment. lieu of the $22,500 limitation set out in paragraph § 777.24(b)(2). (h) Payment After Death. A replacement housing payment is personal to [51 FR 6983, Feb. 27, 1986, as amended at 54 the displaced person. Upon his or her FR 10668, Mar. 15, 1989] death, the undisbursed portion of any such payment shall not be paid to the § 777.26 Mobile homes. heirs or assigns, except that: (a) Moving Expenses. Displaced per- (1) The amount attributable to the sons who are occupants of mobile displaced person’s period of actual oc- homes are eligible for moving expenses cupancy of the replacement housing under § 777.23 subject to the following: will be paid. (1) If the person owns the mobile (2) The full payment must be dis- home, moving expenses may, at the owner’s option, include any reasonable bursed in any case in which a member costs incurred to move the mobile of a displaced family dies and other home to a replacement site, plus the family members continue to occupy reasonable cost of disassembling, mov- the replacement dwelling selected in ing, and reassembling any attached ap- accordance with these regulations. purtenances (such as porches, decks, (3) Any portion of a replacement skirting, and awnings) which were not housing payment necessary to satisfy acquired, anchoring of the unit, and the legal obligation of an estate in con- utility ‘‘hook-up charges.’’ nection with the selection of a replace- (2) If the person rents the mobile ment dwelling by or on behalf of a de- home, the Postal Service may allow ceased person must be disbursed to the the person moving expense benefits for estate. moving the mobile home as if the per- (i) 180 Day Owner Retention of Dis- son were an owner of the mobile home placement Dwelling. If a 180 day owner under paragraph (a)(1) of this section. occupant retains ownership of his or (3) If costs of moving a mobile home her dwelling or the right to move his or are paid as moving expenses under her dwelling from the displacement paragraph (a)(1) or (2) of this section, site, and he or she moves it and reoccu- the person may not receive housing as- pies it on a replacement site, the cost sistance benefits hereunder, other than of the actual replacement dwelling to any benefits to which they are entitled be computed for purposes of that are limited to the site of the mo- § 777.24(b)(1)(i)(A) (not to exceed the bile home. purchase price of a comparable replace- (4) Displaced occupants of mobile ment dwelling) will be the sum of: homes are eligible for moving expenses (1) The expenses of moving and re- for personal property other than the storing the retained dwelling to a con- mobile home and its appurtenances, dition comparable to that prior to the but only to the extent the Postal Serv- move; and ice does not pay the costs of moving (2) The salvage or other value de- the mobile home (either as moving ex- ducted from the acquisition cost for penses or replacement housing pay- the retained ownership; and ments or, if it does pay such costs, the

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personal property is of a type that is § 777.27 Last resort housing. customarily moved separately from the (a) Basic Determination to Provide Last mobile home.) Resort Housing. A displaced person can- (b) Replacement Housing Payments. Displaced persons who are 180 day or 90 not be required to move from his or her day occupants of mobile homes qualify dwelling unless at least one com- for replacement housing payments parable replacement dwelling is made under § 777.24 subject to the following: available to him or her which is within (1) If the displaced person owns the his or her financial means. When such mobile home and owns the site, the comparable replacement dwelling is person is eligible for benefits under ei- not available, additional measures may ther § 777.24 (b) or (e). be taken to provide for ‘‘last resort’’ (2) If the displaced person rents the housing for eligible displaced persons. mobile home and rents the site the per- (b) Basic Rights of Persons to be Dis- son is eligible for benefits under placed. The provisions of this section § 777.24(e). do not deprive any displaced person of (3) If the displaced person rents the any rights the person may have under mobile home and owns the site the per- these regulations such as the right to son is eligible for benefits under accept the maximum replacement § 777.24(e), with regard to the mobile housing payment available under these home and to benefits under § 777.24(b) regulations and to move to a decent, with regard to the site, subject to a safe and sanitary replacement dwelling limitation on the home and site bene- even if such dwelling is beyond the per- fits combined of $22,500. (Persons who son’s financial means. voluntarily sell mobile home sites are (c) Methods of Providing Replacement not displaced persons and are not enti- Housing. The Postal Service has broad tled to benefits under Subpart B. See latitude in implementing this section, § 777.13(e)(2)(viii)). but implementation must be on a rea- (4) If the displaced person owns the sonable cost basis. The Postal Service mobile home and rents the site the per- may provide last resort housing using son is eligible for benefits under either the following methods: § 777.24 (b) or (e) with regard to the mo- (1) Rehabilitation of and/or additions bile home and to benefits as a tenant to an existing replacement dwelling. under § 777.24(e) with regard to the site, (2) The construction of a new replace- subject to a limitation on home and ment dwelling. site benefits combined of $5,250. (3) The provision of a direct loan (c) Special Rules for Mobile Homes. (1) which requires regular amortization or In computing replacement housing deferred repayment. Terms of such payments for mobile home owners loan will be at the discretion of the under paragraph (b) of this section, Postal Service. apply the terms of § 777.25 (i) and (j) as (4) A replacement housing payment appropriate, to transactions involving in excess of the $5,250 and $22,500 limi- moving the mobile home to a new site. tations contained in § 777.24. A rental (2) The acquisition of a portion of a subsidy under this section may be pro- mobile home park may leave a remain- vided in installments. der that is not adequate to continue (5) The relocation and any needed re- the operation of the park. When the habilitation of a replacement dwelling. Postal Service determines that its ac- (6) The purchase or lease of land and/ quisition of the real property has had or a replacement dwelling by the Post- this effect and that for this reason a al Service and subsequent sale or lease mobile home occupant located on the to, or exchange with, a displaced per- remaining part of the property is re- son. quired to move, such occupant shall be (7) The removal of barriers to the considered a displaced person under handicapped. these regulations and shall be entitled (8) Any other method determined by to such benefits hereunder as the per- the Postal Service to be reasonable. son would otherwise qualify. (d) Proof of Financial Need. Last Re- [51 FR 6983, Feb. 27, 1986, as amended at 52 sort Housing benefits exceeding the FR 48029, Dec. 17, 1987] limitations under § 777.24(b)(2) and

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§ 777.24(e)(2) will not be paid unless re- the purpose of determining the eligi- quired to provide housing within the bility or the extent of eligibility of any displaced person’s financial means. To person for assistance under the Social establish financial means, the dis- Security Act or any other Federal Law. placed person must furnish the Postal (f) Certification. Certification that a Service proof of gross monthly income person is displaced will be provided any through income tax returns, certified agency requiring such information to financial statements or other reason- assist that person under any Federal able evidence which the Postal Service law or program. determines is satisfactory. (g) Advance of Funds. If the displaced [51 FR 6983, Feb. 27, 1986, as amended at 52 person cannot arrange for the acquisi- FR 48029, Dec. 17, 1987] tion of a replacement property because of financial problems and the problems § 777.28 Claims and appeals. would be solved by an advance of funds, (a) Preparation of Claim. The reloca- the Postal Service may determine the tion representative should assist eligi- estimated amount of the actual claim ble displaced persons in the prepara- and authorize an advance of that tion of claims for moving assistance amount or a portion thereof. The dis- and relocation housing assistance. Pre- placed person will be fully informed in liminary review should be conducted in writing that his or her final claim will the field by the relocation representative with the displaced person, to pre- then be subject to adjustment. Advance clude technical difficulties in proc- payments should not be made to per- essing the claim at a higher level. sons with a history of financial irre- (b) Documentation. Any claim for a responsibility. location payment must be supported by (h) Money Owed to the Postal Service. such documentation as may be re- In cases of Postal Service leasing the quired to support the claim, for exam- acquired property to a displaced per- ple the length of occupancy at the dis- sons, or in cases of advance moving placement dwelling, the rent paid at cost payments, any monies due the the displacement dwelling, expenses in- Postal Service by the displaced person curred in relocating, etc. A displaced and not paid before the remainder of person must be provided reasonable as- the relocation payments are made sistance to complete and file any re- must be deducted from such payments quired claim. and the relocation file so documented. (c) Time for Filing. All claims must be (i) Notice of Denial of Claim. If the filed with the Postal Service within 18 Postal Service disapproves all or part months after the date of the actual of a payment claimed, of refuses to move from the displacement property. consider the claim on its merits be- (d) Review, Approval and Payment. cause of untimely filing or other The Postal Service will review claims grounds, it must promptly notify the within 60 days of submission and ap- claimant in writing of the determina- prove or disapprove payment. Upon ap- tion, the basis for the determination, proval or partial approval of the dis- and the procedures for appealing the placed person’s claim, the Postal Serv- determination. ice will promptly authorize payment of the approved amount. The certification (j) Appeal Procedure. If a displaced that the claimant has occupied decent, person wishes to file an appeal: safe, and sanitary housing must be (1) The appeal must be in writing. completed prior to final payment of re- (2) The appeal must be directed to placement housing payments. the General Manager, Real Estate Divi- (e) Relocation Payments Not Considered sion, and must set forth the displaced as Income. Upon approval of the claim person’s reasons for the appeal. (The and delivery of the relocation payment, General Manager shall not have taken the displaced person must be advised part in the decision which led to the that no relocation payment made appeal. Appeals misdirected to others under these procedures shall be consid- must be forwarded immediately to the ered as income for the purpose of the General Manager with notification of Internal Revenue Code of 1954, or for the forwarding to the appellant.)

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(3) The appeal must be submitted acquire real property through the exer- within 60 days after the displaced per- cise or the threat of the exercise of son receives written notification of the eminent domain. This policy does not, Postal Service’s original determination however, prevent the Postal Service concerning the displacee’s claim. The from occasionally entering into mutu- Postal Service may extend this time ally agreeable condemnation pro- limit for good cause. ceedings with an owner, where price is (k) Right of Representation. A dis- not an issue, and for such purposes as placed person has a right to be rep- to clear title or to acquire property resented by legal counsel or other rep- from certain elected officials. For the resentative in connection with his or purposes of this section, the Postal her appeal, but solely at the person’s Service does not consider such vol- own expense. untary and mutually agreeable uses of (l) Review of Files by Appellant. The condemnation proceedings as the exer- Postal Service must permit a person to cise or the threat of the exercise of inspect and copy all materials perti- eminent domain. The following regula- nent to his or her appeal, except mate- tions apply only to acquisitions by the rials which are confidential. Such in- exercise or the threat of the exercise of spection will be permitted as allowed eminent domain: under the Freedom of Information Act, (1) Notice to Owner. As soon as fea- 39 CFR Part 265. sible after deciding to acquire a spe- (m) Scope of Review. In deciding an cific property through the exercise of appeal, the Postal Service must con- eminent domain, the Postal Service sider all pertinent justification and must notify the owner of its intent to other material submitted by the dis- acquire the property. placed person and all other available (2) Expeditious Negotiations. The Post- information that is needed to ensure a al Service must make every reasonable fair and full review of the appeal. effort to acquire real property expedi- (n) Determination and Notification tiously by negotiation. After Appeal. Promptly after receipt of (3) Appraisal and Invitation to Owner. all supporting information submitted Before the initiation of negotiations, by the appellant, the General Manager, the real property shall be appraised in Real Estate Division, must make a accordance with Postal Service ap- written determination on the appeal, praisal standards as outlined in RE–1 including the basis on which the deci- and the owner or the owner’s des- sion was made, and furnish the appel- ignated agent shall be given an oppor- lant a copy. If the full relief requested tunity to accompany the appraiser dur- is not granted at the Service Center ing the appraiser’s inspection of the level, the General Manager, Real Es- property. tate Division, must advise the person (4) Establishment of Offer of Just Com- of his or her right to appeal the deci- pensation. Prior to the initiation of ne- sion to the Director, Office of Real Es- gotiations (see § 777.13(k) for definition) tate. The rules stated here for appeals the Postal Service must establish an to the General Manager apply as well amount which it believes is just com- as to appeals to the Director, Office of pensation for the real property rights Real Estate. be acquired. The amount must not be [51 FR 6983, Feb. 27, 1986, as amended at 54 less than the approved appraisal of the FR 10668, Mar. 15, 1989] fair market value, including damages or benefits to the remaining property. Subpart C—Acquisition Appraisers shall not give consideration to, or include in their real property ap- § 777.31 Acquisition procedures. praisals, any allowances for the bene- (a) Policy; Application of Section. The fits provided by title II of the Act. Postal Service, as a matter of policy, (5) Summary Statement. Promptly acquires interests in real property after determining fair market value, through voluntary agreements with the Postal Service shall make a writ- owners. Only under unusual and com- ten offer to acquire the property for pelling circumstances, and on a case- the full amount believed to be just by-case basis, does the Postal Service compensation. Along with the written

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purchase offer, the owner must be offer is warranted, the Postal Service given a written statement of the basis must promptly reestablish just com- for the offer of just compensation. This pensation and offer the revised amount statement must include: to the owner in writing. (i) A statement of the amount offered (9) Contracts and Options. Contracts as just compensation. In the case of a to purchase shall cover only those partial acquisition, the compensation items related to the acquisition of the for the real property to be acquired and property, and not incorporate provi- the compensation for damages, if any, sions for making payments for reloca- must be separately stated. tion costs or related costs under title II (ii) The location and description of of these regulations. the real property and the interest(s) to (10) Title II Benefits Not To Be Consid- be acquired. ered. In the event of condemnation, es- (iii) An identification of the build- timated compensation shall be deter- ings, structures, and other improve- mined solely on the basis of the ap- ments (including removable building praised value of the real property with equipment and trade fixtures) which no consideration being given to or ref- are considered part of the real property erence contained therein to the pay- for which the offer of just compensa- ments to be made under title II. tion is made. Where appropriate, the (11) Coercive Action. The Postal Serv- statement shall identify and separately ice shall not advance the time of con- held ownership interest in the improve- demnation, or defer negotiations or ment(s), for example, a tenant-owned condemnation, or the deposit of funds improvement. with the court, or take any other coer- (6) Basic Negotiation Procedures. The cive action in order to induce an agree- Postal Service must make every rea- ment on the price to be paid for the sonable effort to contact the owner or property. the owner’s representative and: (12) Inverse Condemnation. If the Post- (i) Discuss the Postal Service’s offer al Service intends to acquire any inter- to purchase the property including the est in real property by exercise of the basis for the offer of just compensa- power of eminent domain, it must in- tion, and; stitute formal condemnation pro- (ii) Explain Postal Service acquisi- ceedings and not intentionally make it tion policies and procedures including necessary for the owner to institute the provisions for the payment of inci- proceedings to prove the fact of the dental expenses as described under taking of the real property. § 777.33. (13) Payment Before Taking Possession. (7) Opportunity to Consider Offer. The Before requiring the owner to sur- owner must be given a reasonable op- render possession of the real property, portunity to consider the Postal Serv- the Postal Service must either: ice’s offer, to present material which (i) Pay the agreed purchase price to he or she believes is relevant to deter- the owner; or mining the value of the property, and (ii) In the case of a condemnation to suggest modification in the proposed proceeding, deposit with the court for terms and conditions of the purchase. the benefit of the owner an amount not The Postal Service must consider the less than the amount of the approved owner’s presentation. appraised value of the property or the (8) Updating Offer of Just Compensa- amount of the award of compensation tion. If the information presented by in the condemnation proceeding for the the owner or a material change in the property. character or condition of the property (14) Right-of-Entry. With the prior ap- indicates the need for new appraisal in- proval of the owner, the Postal Service formation, or if a significant delay has may obtain a right-of-entry before occurred since the time of the ap- making payment to the owner. praisal(s) of the property, the Postal Service must have the appraisal(s) up- § 777.32 Acquisition of tenant-owned dated or obtain a new appraisal(s). If improvements. the latest appraisal information indi- (a) Acquisition of Improvements. When cates that a change in the purchase acquiring any interest in real property,

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the Postal Service must acquire at (b) Direct Payment. Whenever feasible least an equal interest in all buildings, the Postal Service must pay these structures, or other improvements lo- costs directly and thus avoid the need cated upon the real property. This for an owner to pay such costs and then must include any improvement of a seek reimbursement from the Postal tenant owner who has the right or obli- Service. gation to remove the improvement at (c) Certain Litigation Expenses. The the expiration of the lease term. owner of the real property acquired (b) Special Conditions. Payment for must be reimbursed any reasonable ex- tenant-owned improvements will be penses, including reasonable attorney, made to the tenant only if he or she appraisal, and engineering fees which meets the following conditions: the owner actually incurred because of (1) In consideration for the payment a condemnation proceeding if: the tenant-owner assigns, transfers, (1) The final judgment of the court is and releases to the Postal Service all of that the Postal Service cannot acquire the tenant-owner’s rights, title, and in- the real property by condemnation; or terests in the improvement; (2) The condemnation proceeding is (2) The owner of the real property on which the improvement is located dis- abandoned by the Postal Service other claims all interest in the improvement; than under an agreed-upon settlement; and or (3) The payment does not result in (3) The court having jurisdiction ren- the duplication of any compensation ders a judgment in favor of the owner otherwise authorized by law. in an inverse condemnation proceeding (c) Preservation of Tenant’s Rights. or the Postal Service effects a settle- Nothing in this section shall be con- ment of such a proceeding. strued to deprive the tenant-owner of any rights to reject payment under Subpart D—Voluntary Acquisitions this section and to obtain payment for such property interests in accordance § 777.41 Acquisition procedures. with other applicable law. (a) Voluntary Acquisitions. Acquisition § 777.33 Expenses incidental to trans- rules for voluntary purchases are set fer of title to the Postal Service. out in Handbook RE–1, Realty Acquisi- tion and Management and cover such (a) Reimbursement. When property is areas as appraisal and negotiation pro- acquired through the exercise or the cedures. threat of the exercise of eminent domain, the owner shall be reimbursed (b) Tenant-Owned Improvements. In for all reasonable expenses he or she general the Postal Service deals exclu- necessarily incurred in conveying the sively with the fee owner on the acqui- real property to the Postal Service for: sition of all real property interest at (1) Recording fees, transfer taxes, the site. The Postal Service may, how- documentary stamps, evidence of title, ever, in exceptional cases deal directly boundary surveys, legal descriptions of with a tenant on a leasehold improve- the real property, and similar inci- ments matter. Should the Postal Serv- dental expenses. However, the Postal ice acquire the fee interest without ac- Service will not pay costs solely requiring rights in a leasehold improve- quired to perfect the owner’s title to ment under circumstances in which the the real property. tenant would be entitled to compensa- (2) Penalty costs and other charges tion under § 777.32 of this part, if the for prepayment of any preexisting re- acquisition were by eminent domain or corded mortgage, entered into in good the under threat thereof, the tenant faith, encumbering the real property. will be entitled to the benefits that (3) The pro rata portion of any pre- would, under such circumstances, have paid real property taxes which are allo- been paid under § 777.32 of this part, un- cable to the period after the Postal less the tenant has formally disclaimed Service obtains title to the property or further right in the real property im- effective possession of it, whichever is provement beyond the time of the expi- earlier. ration of his or her tenancy.

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Subpart E—Donations also implement applicable provisions of section 401 of the Intergovernmental § 777.51 Acceptance of donations. Cooperation Act of 1968, which the Nothing in these regulations shall Postal Service follows as a matter of prevent a person from making a gift or policy. donation of real property or any part (b) These regulations are intended to thereof, or any interest therein, or of foster an intergovernmental partner- any compensation paid therefor, to the ship and a strengthened Federalism by Postal Service. The Postal Service may relying on state processes and on state, obtain an appraisal of the real property areawide, regional and local coordina- for income tax or other purposes if the tion for review of proposed direct fed- owner thereof requests the Postal Serv- eral development projects. ice to do so. (c) These regulations are not intended to create any right or benefit PART 778—INTERGOVERNMENTAL enforceable at law by a party against REVIEW OF POSTAL SERVICE FA- the Postal Service or its officers. (d) These regulations implement Ex- CILITY ACTIONS ecutive Order 12372 and are adopted under the Postal Reorganization Act Sec. 778.1 What is the purpose of these regula- rather than the statute and Executive tions? Order listed in paragraph (a) of this 778.2 What definitions apply to these regu- section to the extent the statute and lations? Executive Order do not apply to the 778.3 What categories of facility project ac- Postal Service under 39 U.S.C. 410(a). tions of the Postal Service are subject to these regulations? § 778.2 What definitions apply to these 778.4 What are the Postal Service’s general regulations? responsibilities under the Order? 778.5 What is the Postal Service’s obligation Order means Executive Order 12372, with respect to federal interagency co- issued July 14, 1982, and amended April ordination? 8, 1983, and titled ‘‘Intergovernmental 778.6 What procedures apply to a state’s Review of Federal Programs.’’ choice of facility action categories under State means any of the 50 states, the these regulations? 778.7 How does the Postal Service commu- District of Columbia, the Common- nicate with state and local officials con- wealth of Puerto Rico, the Common- cerning the Postal Service’s facility wealth of the Northern Mariana Is- project actions? lands, Guam, American Samoa, the 778.8 How does the Postal Service provide U.S. Virgin Islands, or the Trust Terri- states an opportunity to comment on tory of the Pacific Islands. proposed facility project actions? 778.9 How does the Postal Service receive § 778.3 What categories of facility and respond to comments? project actions of the Postal Service 778.10 How does the Postal Service make ef- are subject to these regulations? forts to accommodate intergovernmental concerns? The Postal Service publishes in the 778.11 What are the Postal Service’s obliga- FEDERAL REGISTER a list of its cat- tions in interstate situations? egories of facility project actions that 778.12 [Reserved] are subject to these regulations. 778.13 May the Postal Service waive any provision of these regulations? § 778.4 What are the Postal Service’s AUTHORITY: 39 U.S.C. 401. general responsibilities under the Order? SOURCE: 48 FR 29376, June 24, 1983, unless otherwise noted. (a) The Postal Service provides opportunities for consultation by elected § 778.1 What is the purpose of these officials of those state and local gov- regulations? ernments that would be directly af- (a) The regulations in this part im- fected by the Postal Service’s facility plement Executive Order 12372, ‘‘Inter- project actions. governmental Review of Federal Pro- (b) If a state adopts a process under grams,’’ issued July 14, 1982 and amend- the Order to review and coordinate pro- ed on April 8, 1983. These regulations posed direct Federal development

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projects, the Postal Service, to the ex- of changes in their facility action cat- tent permitted by law: egory selections. (1) Uses the state process to deter- (d) The Postal Service uses a state’s mine official views of state and local process as soon as feasible, after the elected officials; Postal Service is notified of the state’s (2) Communicates with state and selections. local elected officials as early in a facility project action’s planning cycle § 778.7 How does the Postal Service as is reasonably feasible to explain spe- communicate with state and local officials concerning the Postal Serv- cific plans and actions; ice’s facility project actions? (3) Makes efforts to accommodate state and local elected officials’ con- (a) [Reserved] cerns with proposed direct Federal de- (b) The Postal Service provides no- velopment projects that are commu- tice directly to affected state, nicated through the state process; and areawide, regional, and local entities (4)–(5) [Reserved] in a state of a proposed direct Federal (6) Seeks the coordination of views of development project if: affected state and local elected offi- (1) The state has not adopted a proc- cials in one state with those of another ess under the Order; or state when a proposed direct Federal (2) The development project involves development project has an impact on a facility project action category not interstate metropolitan urban centers selected for the state process. or other interstate areas. This notice may be made by publication in local newspapers and/or by let- § 778.5 What is the Postal Service’s ob- ter. ligation with respect to federal interagency coordination? § 778.8 How does the Postal Service The Postal Service, to the extent provide states an opportunity to comment on proposed facility practicable, consults with and seeks project actions? advice from other federal departments and agencies substantially affected by (a) Except in unusual circumstances, Postal Service facility project actions the Postal Service gives state processes covered under these regulations. or directly affected state, areawide, regional and local officials and entities: § 778.6 What procedures apply to a (1) [Reserved] state’s choice of facility action cat- (2) At least 60 days from the date es- egories under these regulations? tablished by the Postal Service to com- (a) A state may select any categories ment on proposed facility project ac- of facility project actions published in tions (except as noted in paragraph the FEDERAL REGISTER in accordance (a)(3) of this section). with § 778.3 for intergovernmental re- (3) For facility project actions in the view under these regulations. Each Washington, DC National Capital Re- state, before selecting categories of fa- gion, coordination also is accomplished cility project actions, shall consult with the National Capital Planning with local elected officials. Commission (NCPC). The Postal Serv- (b) Each state that adopts a process ice gives the NCPC 90 days to comment shall notify the Postal Service of the on projects in the Maryland and Vir- Postal Service’s categories of facility ginia portions of the National Capital actions selected for that process. Region. (c) A state may notify the Postal (b) This section also applies to com- Service of changes in its selections at ments in cases in which the review, co- any time. For each change, the state ordination, and communication with shall submit to the Postal Service an the Postal Service have been delegated. assurance that the state has consulted with local elected officials regarding § 778.9 How does the Postal Service re- the change. The Postal Service may es- ceive and respond to comments? tablish deadlines by which states are (a) The Postal Service follows the required to inform the Postal Service procedures in § 778.10 if:

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(1) A state office or official is des- discretion deems appropriate. The ignated to act as a single point of con- Postal Service may also supplement tact between a state process and all the written explanation by providing federal agencies, and the explanation to the single point of (2) That office or official transmits a contact by telephone, other tele- state process recommendation for a fa- communication, or other means. cility project action of a category se- (b) In any explanation under para- lected under § 778.6. graph (a)(3) of this section, the Postal (b)(1) The single point of contact is Service informs the single point of con- not obligated to transmit comments tact that: from state, areawide, regional or local (1) The Postal Service will not imple- officials and entities where there is no ment its decision for at least ten days state process recommendation. after the single point of contact re- (2) If a state process recommendation ceives the explanation; or is transmitted by a single point of con- (2) The Postal Service has reviewed tact, all comments from state, the decision and determined that be- areawide, regional, and local officials cause of unusual circumstances, the and entities that differ from it must waiting period of at least ten days is also be transmitted. not feasible. (c) If a state has not established a (c) For purposes of computing the process, or does not submit a state waiting period under paragraph (b)(1) process recommendation, state, of this section, a single point of con- areawide, regional and local officials tact is presumed to have received writ- and entities may submit comments di- ten notification 5 days after the date of rectly to the Postal Service. mailing of such notification. (d) If a facility project action is not selected for a state process, state, § 778.11 What are the Postal Service’s areawide, regional and local officials obligations in interstate situations? and entities may submit comments di- (a) The Postal Service is responsible rectly to the Postal Service. In addi- for: tion, if a state process recommendation for a nonselected facility project ac- (1) Identifying proposed direct federal tion is transmitted to the Postal Serv- development projects that have an im- ice by the single point of contact, the pact on interstate areas; Postal Service follows the procedures (2) Notifying appropriate officials of § 778.10. and entities in states which have (e) The Postal Service considers com- adopted a process and which select the ments which do not constitute a state Postal Service’s facility project action process recommendation submitted for review; under these regulations and for which (3) Making efforts to identify and no- the Postal Service is not required to tify the affected state, areawide, re- apply the procedures of § 778.10 when gional, and local officials and entities such comments are provided by a sin- in those states that have not adopted a gle point of contact or directly to the process under the Order or do not se- Postal Service by a commenting party. lect the Postal Service’s facility project action for review; § 778.10 How does the Postal Service (4) Responding pursuant to § 778.10 if make efforts to accommodate inter- the Postal Service receives a rec- governmental concerns? ommendation from a designated (a) If a state process provides a state areawide agency transmitted by a sin- process recommendation to the Postal gle point of contact in cases in which Service through its single point of con- the review, coordination, and commu- tact, the Postal Service either: nication with the Postal Service have (1) Accepts the recommendation; been delegated. (2) Reaches a mutually agreeable so- (b) The Postal Service uses the proce- lution with the state process; or dures in § 778.10 if a state process pro- (3) Provides the single point of con- vides a state process recommendation tact with such written explanation of to the Postal Service through a single its decision as the Postal Service in its point of contact.

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§ 778.12 [Reserved] § 778.13 May the Postal Service waive any provision of these regulations? In an emergency, the Postal Service may waive any provision of these regulations.

SUBCHAPTER M [RESERVED]

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Rules of Procedure Before the he may adjust and settle it under au- Office of General Counsel thority of 39 U.S.C. 2603. [45 FR 43719, June 30, 1980, as amended at 69 PART 912—PROCEDURES TO ADJU- FR 52607, Aug. 27, 2004] DICATE CLAIMS FOR PERSONAL § 912.3 Time limit for filing. INJURY OR PROPERTY DAMAGE ARISING OUT OF THE OPERATION (a) Claim. A claim under the Federal Tort Claims Act must be presented OF THE U.S. POSTAL SERVICE within two years from the date the claim accrues. Sec. (b) Suit. Suit must be filed within six 912.1 Claims responsibility. months after the date of mailing by 912.2 Applicability of Federal Tort Claims Act. certified or registered mail of notice of 912.3 Time limit for filing. final denial of the claim by the Postal 912.4 Place of filing. Service. 912.5 Administrative claim; when presented. [45 FR 43720, June 30, 1980] 912.6 Administrative claim; who may file. 912.7 Evidence and information to be sub- § 912.4 Place of filing. mitted. 912.8 Sufficiency of evidence and informa- Claims should be filed with the Tort tion submitted. Claims Coordinator for the Postal 912.9 Final denial of claim. Service District Office where the acci- 912.10 Action on approved claims. dent occurred, but may be filed at any 912.11 Exclusiveness of remedy. office of the Postal Service, or sent di- 912.12 Review by legal officers. rectly to the Chief Counsel, Torts, Gen- 912.13 Attorneys’ fees. eral Law Service Center, USPS Na- 912.14 Conclusiveness of remedy. tional Tort Center, 1720 Market Street, Room 2400, St. Louis, MO 63155–9948. AUTHORITY: 28 U.S.C. 2671–2680; 28 CFR 14.1 through 14.11; 39 U.S.C. 409. [69 FR 52607, Aug. 27, 2004, as amended at 73 FR 75339, Dec. 11, 2008; 76 FR 52580, Aug. 23, § 912.1 Claims responsibility. 2011] The General Counsel is responsible § 912.5 Administrative claim; when for settlement of claims made against presented. the U.S. Postal Service under the Fed- eral Tort Claims Act and 39 U.S.C. 2603, (a) For purposes of this part, a claim with authority to redelegate the func- shall be deemed to have been presented tions to General Counsel staff members when the U.S. Postal Service receives and other Postal Service employees. from a claimant, his duly authorized agent or legal representative, an exe- [36 FR 12448, June 30, 1971] cuted Standard Form 95, Claim for Damage or Injury, or other written no- § 912.2 Applicability of Federal Tort tification of an incident, accompanied Claims Act. by a claim for money damages in a sum (a) The provisions of chapter 171 and certain for injury to or loss of prop- all other provisions of title 28, U.S.C., erty, personal injury, or death alleged relating to tort claims shall apply to to have occurred by reason of the inci- tort claims arising out of the activities dent. A standard Form 95 may be ob- of the Postal Service. (39 U.S.C. 409(c)). tained from the local District Tort (b) Where the General Counsel, or the Claims Coordinator, the National Tort General Counsel’s designee, finds a Center, or online at usa.gov (select claim for damage to persons or prop- Government forms). erty resulting from operation of the (b) A claim presented in compliance U.S. Postal Service to be a proper with paragraph (a) of this section may charge against the United States and it be amended by the claimant at any is not cognizable under 28 U.S.C. 2672, time prior to:

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(1) The claimant’s exercise of the op- agent, executor, administrator, parent, tion to file a civil action pursuant to 28 guardian, or other representative. U.S.C. 2675(a); [36 FR 12448, June 30, 1971, as amended at 45 (2) The Postal Service’s issuance of a FR 43720, June 30, 1980] payment in the full amount of the claim; or § 912.7 Evidence and information to be (3) The Postal Service’s issuance of a submitted. written denial of the claim in accord- (a) Death. In support of a claim based ance with § 912.9. on death, the claimant may be required (c) Amendments shall be submitted to submit the following evidence or in- in writing and signed by the claimant formation: or his duly authorized agent or legal (1) An authenticated death certifi- representative. Upon the timely filing cate or other competent evidence show- of an amendment to a pending claim, ing cause of death, date of death, and the Postal Service shall have six age of the decedent. months in which to make final disposi- (2) Decedent’s employment or occu- tion of the claim as amended, and the pation at time of death, including claimant’s option under 28 U.S.C. monthly or yearly salary or earnings, 2675(a) shall not accrue until six if any, and the duration of his last em- months after the filing of an amend- ployment or occupation. (3) Full names, addresses, birth dates, ment. kinship, and marital status of the dece- [36 FR 12448, June 30, 1971, as amended at 45 dent’s survivors, including identifica- FR 43720, June 30, 1980; 69 FR 52607, Aug. 27, tion of those survivors who were de- 2004; 73 FR 75339, Dec. 11, 2008] pendent for support upon the decedent at the time of his death. § 912.6 Administrative claim; who may (4) Degree of support afforded by the file. decedent to each survivor dependent (a) A claim for injury to or loss of upon him for support at the time of his property may be presented by the death. owner of the property, his duly author- (5) Decedent’s general physical and ized agent, or legal representative. mental condition before death. (b) A claim for personal injury may (6) Itemized bills for medical and bur- be presented by the injured person, his ial expenses incurred by reason of the duly authorized agent, or legal rep- incident causing death, or itemized re- resentative. ceipts of payment for such expenses. (c) A claim based on death may be (7) If damages for pain and suffering prior to death are claimed, a physi- presented by the executor or adminis- cian’s detailed statement specifying trator of the decedent’s estate, or by the injuries suffered, duration of pain any other person legally entitled to as- and suffering, any drugs administered sert such a claim in accordance with for pain, and the decedent’s physical applicable State law. condition in the interval between in- (d) A claim for loss wholly com- jury and death. pensated by an insurer with the rights (8) Any other evidence or information of a subrogee may be presented by the which may have a bearing on either the insurer. A claim for loss partially com- responsibility of the United States for pensated by an insurer with the rights the death or the damages claimed. of a subrogee may be presented by the (b) Personal injury. In support of a parties individually as their respective claim for personal injury, including interests appear, or jointly. pain and suffering, the claimant may (e) A claim presented by an agent or be required to submit the following legal representative shall be presented evidence or information: in the name of the claimant, be signed (1) A written report by his attending by the agent or legal representative, physician or dentist setting forth the show the title or legal capacity of the nature and extent of the injury, nature person signing, and be accompanied by and extent of treatment, any degree of evidence of his authority to present a temporary or permanent disability, the claim on behalf of the claimant as prognosis, period of hospitalization,

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and any diminished earning capacity. § 912.8 Sufficiency of evidence and in- In addition, the claimant may be re- formation submitted. quired to submit to a physical or men- In order to exhaust the administra- tal examination by a physician em- tive remedy provided, a claimant shall ployed by the agency or another Fed- submit substantial evidence to prove eral agency. A copy of the report of the the extent of any losses incurred and examining physician shall be made any injury sustained, so as to provide available to the claimant upon the the Postal Service with sufficient evi- claimant’s written request, provided dence for it to properly evaluate the that he has, upon request, furnished claim. the report referred to in the first sentence of this paragraph and has made, [45 FR 43720, June 30, 1980] or agrees to make available to the § 912.9 Final denial of claim. agency or another Federal agency. A copy previously or thereafter made of (a) Final denial of an administrative the physical or mental condition which claim shall be in writing and sent to is the subject matter of his claim. the claimant, his attorney, or legal (2) Itemized bills for medical, dental, representative by certified or reg- and hospital expenses incurred, or istered mail. The notification of final itemized the report referred to in the denial may include a statement of the first expenses. reasons for the denial and shall include a statement that, if the claimant is (3) If the prognosis reveals the neces- dissatisfied with the agency action, he sity for future treatment, a statement may file suit in an appropriate U.S. of expected expenses for such treat- District Court not later than 6 months ment. after the date of mailing of the nota- (4) If a claim is made for loss of time tion. for employment, a written statement (b) Prior to the commencement of from his employment, whether he is a suit and prior to the expiration of the full- or part-time employee, and wages 6 month period provided in 28 U.S.C. or salary actually lost. 2401(b), a claimant, his duly authorized (5) If a claim is made for loss of in- agent, or legal representative, may file come and the claimant is self-em- a written request with the postal offi- ployed, documentary evidence showing cial who issued the final denial or with the amount of earnings actually lost. the Chief Counsel, Torts, General Law (6) Any other evidence or information Service Center, USPS National Tort which may have a bearing on either the Center, 1720 Market Street, Room 2400, responsibility of the United States for St. Louis, MO 63155–9948, for a reconsid- the personal injury or the damages eration of a final denial of a claim claimed. under paragraph (a) of this section. (c) Property damage. In support of a Upon the timely filing of a request for claim for injury to or loss of property, reconsideration, the Postal Service real or personal, the claimant may be shall have 6 months from the date of required to submit the following evi- filing in which to make a disposition of dence or information: the claim and the claimant’s option (1) Proof of ownership. under 28 U.S.C. 2675(a) shall not accrue (2) A detailed statement of the until 6 months after the filing of a re- amount claimed with respect to each quest for reconsideration. Final Postal item of property. Service action on a request for recon- (3) An itemized receipt of payment sideration shall be effected in accord- for necessary repairs or itemized writ- ance with this part. ten estimates of the cost of such re- (c) For purposes of this section, a repairs. quest for reconsideration of a final de- (4) A statement listing date of pur- nial of a claim shall be deemed to have been filed when received in the office of chase, purchase price and salvage the official who issued the final denial value, where repair is not economical. or in the office of the Chief Counsel, [36 FR 12449, June 30, 1971] Torts, General Law Service Center,

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USPS National Tort Center, 1720 Mar- § 912.13 Attorneys’ fees. ket Street, Room 2400, St. Louis, MO The provisions of 28 U.S.C. 2678 63155–9948. should be consulted in determining the (d) Only one request for reconsider- amount of the attorneys’ fees. ation of a final denial may be filed. A claimant shall have no right to file a [36 FR 12448, June 30, 1971. Redesignated at 45 request for reconsideration of a final FR 43720, June 30, 1980] denial issued in response to a request for reconsideration. § 912.14 Conclusiveness of remedy. (28 U.S.C. 2671–2680; 28 CFR 14.1–14.11; 39 Payment by the Postal Service of the U.S.C. 401, 409, 2008) full amount claimed or acceptance by the claimant, his agent, or legal rep- [36 FR 12448, June 30, 1971, as amended at 38 resentative, of any award, compromise, FR 16868, June 27, 1973; 49 FR 19478, May 8, 1984; 69 FR 52607, Aug. 27, 2004; 73 FR 75340, or settlement made pursuant to the Dec. 11, 2008; 76 FR 52580, Aug. 23, 2011] provisions of the Federal Tort Claims Act, shall be final and conclusive on § 912.10 Action on approved claims. the claimant, his agent, or legal rep- In any case where the General Coun- resentative, and any other person on sel or the General Counsel’s designee, whose behalf or for whose benefit the upon consideration of all the evidence claim has been presented, and shall submitted, finds that compensation is constitute a complete release of any due a claimant, payment will be made claim against the United States and by the U.S. Postal Service and in due against any employee of the Govern- course a settlement check will be for- ment whose act or omission gave rise warded to the claimant or his rep- to the claim by reason of the same sub- resentative. ject matter. [36 FR 12450, June 30, 1971, as amended at 69 [45 FR 43720, June 30, 1980] FR 52607, Aug. 27, 2004]

§ 912.11 Exclusiveness of remedy. PART 913—PROCEDURES FOR THE ISSUANCE OF ADMINISTRATIVE The provisions of 28 U.S.C. 2679(b) provide that the remedy against the SUBPOENAS UNDER 39 U.S.C. United States, as provided by sections 3016 1346(b) and 2672 of title 28, for injury or loss or personal injury or death result- Sec. ing from the operation by an employee 913.1 Subpoena authority. of the Government of any motor vehi- 913.2 Service. cle while acting within the scope of his 913.3 Enforcement. employment is exclusive of any other 913.4 Disclosure. civil action or proceeding by reason of AUTHORITY: 39 U.S.C. 204, 401, 404, 3005, 3016. the same subject matter against the SOURCE: 65 FR 31266, May 17, 2000, unless employee or his estate whose act or otherwise noted. omission gave rise to the claim. [45 FR 43720, June 30, 1980] § 913.1 Subpoena authority. (a) General. The General Counsel by § 912.12 Review by legal officers. delegation from the Postmaster Gen- The authority of the Postal Service eral is responsible for the issuance of to adjust, determine, compromise, and subpoenas in investigations conducted settle a claim under the provisions of under 39 U.S.C. 3005(a), with authority the Federal Tort Claims Act shall, if to delegate that function to a Deputy the amount of a proposed compromise, General Counsel. settlement, or award exceeds $5,000, be (b) Production of records. A subpoena exercised only after review by a legal issued by the General Counsel may re- officer of the Postal Service. quire the production of any records (in- [45 FR 43720, June 30, 1980, as amended at 69 cluding computer records, books, pa- FR 52607, Aug. 27, 2004] pers, documents, and other tangible

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things which constitute or contain evi- United States, in such manner as the dence) which the General Counsel con- Federal Rules of Civil Procedure de- siders relevant or material to an inves- scribe for service in a foreign country. tigation. To the extent that the courts of the (c) Requirements. No subpoena shall United States may assert jurisdiction be issued until a specific case (identi- over such person consistent with due fying the individual or entity that is process, the United States District the subject) has been opened and an ap- Court for the District of Columbia propriate supervisory and legal review shall have the same jurisdiction to of a subpoena request have been per- take any action respecting compliance formed. with this section by such person that (d) Requests for subpoenas. (1) A re- such court would have if such person quest for a subpoena shall be submitted to the Office of the General Counsel by were personally within the jurisdiction a Postal Inspector, Inspector Attorney, of such court. or other Inspector specifically author- (c) Service on business persons. Serv- ized by the Postal Inspection Service ice of any such subpoena may be made to submit such a request, after appro- upon a partnership, corporation, asso- priate review by an Inspector In Charge ciation, or other legal entity by— or that person’s designee. (1) Delivering a duly executed copy (2) A request for a subpoena shall thereof to any partner, executive offi- state the specific case, with an indi- cer, managing agent, or general agent vidual or entity identified as the sub- thereof, or to any agent thereof au- ject, in which the subpoena is re- thorized by appointment or by law to quested. receive service of process on behalf of (3) A request for a subpoena shall such partnership, corporation, associa- contain a specific description of the tion, or entity; records requested, and shall state how (2) Delivering a duly executed copy they are relevant or material to the in- thereof to the principal office or place vestigation. of business of the partnership, corpora- (4) The General Counsel, in his or her tion, association, or entity; or discretion, may issue or deny the requested subpoena, or require the re- (3) Depositing such copy in the questing individual to provide addi- United States mails, by registered or tional information. The General Coun- certified mail, return receipt re- sel, in his or her discretion, may also quested, duly addressed to such part- honor requests to amend or supplement nership, corporation, association, or a request for a subpoena. entity at its principal office or place of (e) Form and issuance. Every sub- business. poena shall cite 39 U.S.C. 3016 as the (d) Service on natural persons. Serv- authority under which it is issued, and ice of any subpoena may be made upon shall command each person to whom it any natural person by— is directed to produce specified records (1) Delivering a duly executed copy to at a time and place therein specified. the person to be served; or The General Counsel shall sign the sub- (2) Depositing such copy in the poena and enter the name of the indi- United States mails, by registered or vidual or entity to whom it is directed. certified mail, return receipt re- § 913.2 Service. quested, duly addressed to such person at his residence or principal office or (a) Service within the United States. place of business. A subpoena issued under this section (e) Verified return. A verified return may be served by a person designated by the individual serving any such sub- under section 3061 of title 18 at any place within the territorial jurisdiction poena setting forth the manner of such of any court of the United States. service shall be proof of such service. (b) Foreign service. Any such sub- In the case of service by registered or poena may be served upon any person certified mail, such return shall be ac- who is not to be found within the terri- companied by the return post office re- torial jurisdiction of any court of the ceipt of delivery of such subpoena.

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§ 913.3 Enforcement. § 927.1 Noncontractual carriage of (a) In general. Whenever any person, international mail by vessel. partnership, corporation, association, (a) Report of infraction. Where evi- or entity fails to comply with any sub- dence is found or reported that a car- poena duly served upon him, the Gen- rier of mail by vessel which has trans- eral Counsel may request that the At- ported mail pursuant to the provisions torney General seek enforcement of the of Chapter 4, USPS Purchasing Man- subpoena in the district court of the ual, has unreasonably or unnecessarily United States for any judicial district delayed the mails, or committed other in which such person resides, is found, delinquencies in the transportation of or transacts business (or in the case of mail, has failed to carry the mail in a a person outside the territorial juris- safe and secure manner, or has caused diction of any district court, the dis- loss or damage to the mail, the facts trict court for the District of Colum- will be reported to International Net- bia), and serve upon such person a peti- work Operations, Headquarters. tion for an order of such court for the (b) Review, investigation, recommenda- enforcement of this part. tion. International Network Operations (b) Jurisdiction. Whenever any peti- will investigate the matter, record tion is filed in any district court of the findings of fact, make a recommenda- United States under this section, such tion concerning the need for imposition court shall have jurisdiction to hear of fine or penalty with reasons for the and determine the matter so presented, recommendation, and will advise the and to enter such order or orders as carrier of the recommendation. may be required to carry into effect (c) Penalty action. International Net- the provisions of this section. Any final work Operations, upon review of the order entered shall be subject to appeal record, may impose a fine or penalty under section 1291 of title 28, United against a carrier for any irregularity States Code. Any disobedience of any properly documented, whether or not final order entered under this section penalty action has been recommended. by any court may be punished as con- A tentative decision of International tempt. Network Operations to take penalty action will be set forth in detail the § 913.4 Disclosure. facts and reasons upon which the deter- Any documentary material provided mination is based. International Net- pursuant to any subpoena issued under work Operations will send the ten- this section shall be exempt from dis- tative decision, including notice of the closure under section 552 of title 5, irregularities found and the amount of United States Code. fine or penalty proposed, to the carrier. The carrier may present a written defense to the proposed action within 21 PART 916 [RESERVED] days after receipt of the tentative decision. International Network Operations Rules of Procedure Before the Mail will advise the carrier of the final deci- Processing Department sion. (d) Appeal. If the final decision in- PART 927—RULES OF PROCEDURE cludes a penalty International Network RELATING TO FINES, DEDUC- Operations will advise the carrier that TIONS, AND DAMAGES it may, within 30 days, appeal the action in writing to the Vice President, Sec. Network Operations Management, U.S. 927.1 Noncontractual carriage of inter- Postal Service Headquarters and that national mail by vessel. its written appeal should include all 927.2 Noncontractual air service for inter- facts and arguments upon which the national and military mail. carrier relies in support of the appeal. 927.3 Other remedies. If an appeal is not received, Inter- AUTHORITY: 39 U.S.C. 401, 2601 Chap. 56 Sec- national Network Operations will close tion 5604; 49 U.S.C. 1357, 1471. the record. When an appeal is taken, SOURCE: 67 FR 50353, Aug. 2, 2002, unless the Vice President, Network Oper- otherwise noted. ations Management will review the

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complete record the decide the appeal. carrier has disputed the facts alleged He will advise the carrier of the deci- by the reporting authority, Inter- sion in writing and will take actions national Network Operations will inconsistent with that decision. The Vice vestigate the matter to resolve the dif- President, Network Operations Man- ferences. International Network Oper- agement, may sustain, rescind, or com- ations, upon review of the record, may promise a fine or penalty. The decision impose a fine or penalty against an air of the Vice President, Network Oper- carrier for any irregularity properly ations Management on appeal shall be documented, whether or not penalty the final decision of the Postal Service. action has been recommended. Inter- The Postal Service may, in its discre- national Network Operations will send tion, deduct from payment otherwise the decision, including notice of the due the carrier an amount necessary to irregularities alleged and the amount satisfy the penalty action taken under of fine or penalty proposed to the car- this section. rier. The Postal Service may, in its dis- (e) Details of administration. For fur- cretion, deduct from payment other- ther administrative details, see USPS wise due the air carrier an amount nec- Purchasing Manual, chapter 4. essary to satisfy the penalty action taken under this section. § 927.2 Noncontractual air service for (d) Appeal. If the final decision in- international and military mail. cludes a penalty, International Net- (a) Report of infraction. Each mail work Operations will advise the carrier handling irregularity will be reported that it may, within 30 days, appeal the in the prescribed format by the cog- action in writing to the Vice President, nizant postal official or designated rep- Network Operations Management, resentative. As soon as possible the re- Postal Headquarters, and that its writ- porting authority will ask the local ten appeal should include all facts and representative of the air carrier to pro- arguments upon which the carrier re- vide an explanation of the irregularity. lies in support of the appeal. If an ap- A summary of the explanation, if any, peal is not received, International Net- will be entered in the record. A copy of work Operations will close the file. the report will be provided to the local When an appeal is taken, the Vice station manager of the air carrier con- President, Network Operations Man- cerned at the close of each tour or not agement, will review the complete less frequently than each 24 hours. record and decide the appeals. He will (b) Carrier conferences. At least one a advise the carrier of the decision in month, postal officials will schedule writing and will take action consistent meetings with the local representa- with that decision. The Vice President, tives of the affected air carriers to dis- Network Operations Management, may cuss the reported irregularities. The sustain, rescind, or compromise a fine carrier’s representative will be advised or penalty. The decision of the Vice of any irregularity for which the re- President, Network Operations Man- porting authority will recommend pen- agement, on appeal shall be the final alty action. The carrier’s representa- decision of the Postal Service. The tive will be offered the opportunity to Postal Service, may, in its discretion, comment on any irregularity, and any deduct from pay otherwise due the air comments will be attached and/or be carrier an amount necessary to satisfy made part of the record. The reports on the penalty action taken under this which penalty action is recommended section. will then be processed by International (e) Details of administration. For fur- Network Operations, Postal Head- ther administrative details, forms, and quarters. other implementing materials adapted (c) Review, investigation, penalty ac- to the respective modes of transpor- tion. International Network Operations tation, see International Mail Oper- will review the matter and advise the ations, Handbook T–5, chapter 5. carrier of the recommendations. The carrier has 21 days from receipt of no- § 927.3 Other remedies. tice to dispute the recommended pen- The procedures and other require- alties. In those instances which the ments of this part apply only where the

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Postal Service proposes to assess pen- Rules of Procedure Before the alties, fines, deductions, or damages. Postal Inspection Service This part does not limit other remedies available to the Postal Service, includ- PART 946—RULES OF PROCEDURE ing such remedies as summary action RELATING TO THE DISPOSITION to withhold tender of mail to protect the public interest in the event of OF STOLEN MAIL MATTER AND major irregularities such as theft, de- PROPERTY ACQUIRED BY THE liberate loss, damage, abandonment of POSTAL INSPECTION SERVICE the mail or service failures by the air FOR USE AS EVIDENCE carrier. Sec. 946.1 Scope of part. PART 931—RULES OF PROCEDURE 946.2 Disposition of property of apparent GOVERNING THE COMPROMISE owners. OF OBLIGATIONS 946.3 Contraband and property subject to court order. 946.4 Disposition of property of unknown § 931.1 Compromise of obligations. owners. Any proposition of compromise shall 946.5 Disposition of property having a value be submitted in writing, and the of less than $200. 946.6 Disposition of abandoned property; ad- amount offered in compromise shall be ditional period for filing claims. deposited with the Manager, Account- 946.7 Submission of claims. ing Division or the appropriate postal 946.8 Determination of claims. data center. If the offer in compromise 946.9 Reconsideration of claims. is rejected the amount deposited will 946.10 Record retention. be returned. The amount of a com- 946.11 Disposition of property declared abandoned. promise offer must be tendered uncon- ditionally for deposit pending the con- AUTHORITY: 5 U.S.C. 552(a); 39 U.S.C. 401(2), sideration of acceptance. Checks and (5), (8), 404(a)(7), 2003, 3001. drafts cannot be accepted as offers in SOURCE: 53 FR 6986, Mar. 4, 1988, unless oth- compromise when they bear endorse- erwise noted. ments or instructions to the effect that § 946.1 Scope of part. the acceptance of such checks or drafts constitutes settlement in full of the This part prescribes procedures gov- claim, fine, penalty, or liability in con- erning the disposition of recovered sto- nection with which the offer is made, len mail matter and any other property except that such checks or drafts may (real, personal, tangible or intangible) be accepted when they are accom- obtained by the Postal Inspection Serv- ice for possible use as evidence after panied with a written waiver of the en- the need to retain such property no dorsements or instructions printed longer exists. Property obtained by thereon. Offers in compromise should Postal Inspectors which appears to be transmitted or delivered to the of- have been loose in the mails but is not fice or officer of the Postal Service retained for use as evidence, except un- from whom demand is received for pay- lawful matter, must be treated in ac- ment of the amount due. cordance with postal regulations con- (39 U.S.C. 401) cerning disposition of dead mail (see Domestic Manual (DMM) 159.4). Unlaw- [26 FR 11662, Dec. 6, 1961. Redesignated at 33 ful matter must be disposed of in ac- FR 6291, Apr. 25, 1968] cordance with § 946.3.

§ 946.2 Disposition of property of apparent owners. Where an apparent owner of property subject to this part is known, the Chief Postal Inspector or delegate will mail, by certified mail to the apparent owner’s last known address, written notice

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describing the property and the proce- first publication of the notice (See dure for filing a claim for its return § 946.7). (see §§ 946.3 and 946.7). Such claims (b) The notice under § 946.4(a) must be must be filed within 30 days from the published once a week for three con- date the notice is postmarked. If the secutive weeks in a publication of gen- apparent owner of the property fails to eral circulation within the judicial dis- file a timely claim, the property is con- trict where the Postal Inspection Serv- sidered abandoned and must be dis- ice took possession of the property. posed of as provided in § 946.6. § 946.5 Disposition of property having § 946.3 Contraband and property sub- a value of less than $200. ject to court order. Where the owner of property subject Claims submitted with respect to to this part is unknown and the Chief property subject to this part, posses- Postal Inspector or delegate estimates sion of which is unlawful, must be de- that fair market value of such property nied, in writing, by certified mail and is $200 or less, title to the property the person submitting the claim must vests in the United States Postal Serv- be accorded 45 days from the post- ice, subject to the right of the owner to marked date to institute judicial pro- submit a valid claim as provided in ceedings to challenge the denial. If ju- § 946.6. dicial proceedings are not instituted within 45 days, or any extension of § 946.6 Disposition of abandoned prop- time for good cause shown, the contra- erty; additional period for filing band property must be destroyed un- claims. less the Chief Postal Inspector or dele- (a) Upon expiration of the time pro- gate determines that it should be vided in §§ 946.2 and 946.4(a)(3) for the placed in official use by the Postal In- filing of claims or any extension there- spection Service. Property subject to of, and without the receipt of a timely this part, the disposition of which is in- claim, the property described in the no- volved in litigation or is subject to an tice is considered abandoned and be- order of court, must be disposed of as comes the property of the United determined by the court. States Postal Service. However, if the owner satisfies the requirements of § 946.4 Disposition of property of un- § 946.6(b), except for property described known owners. in § 946.3, such abandoned property (a) Where no apparent owner of prop- must be returned to the owner if a erty subject to this part is known, ex- valid claim is filed within 3 years from cept property described in § 946.3, and the date the property became aban- the Chief Postal Inspector or delegate doned, with the following qualifica- estimates that the fair market value of tions: the property exceeds $200, and the prop- (1) Where property has been placed in erty is not needed as evidence, the official use by the Postal Inspection Chief Postal Inspector or delegate must Service, a person submitting a valid publish notice providing the following claim under this section must be reim- information: bursed the fair market value of the (1) A description of the property in- property at the time title vested in the cluding model or serial numbers, if United States Postal Service, less costs known; incurred by the Postal Service in re- (2) The name, address, and telephone turning or attempting to return such number of the Postal Inspector in property to the owner and; Charge who has custody of the prop- (2) Where property has been sold, a erty; and person submitting a valid claim under (3) A statement inviting any person this section must be reimbursed the who believes that he or she is fully en- same amount as the last appraised titled to the property to submit a value of the property prior to the sale claim for its return with the Postal In- of such property. spector in Charge who is identified in (b) In order to present a valid claim the notice. Such claim must be sub- under § 946.6(a), the claimant must es- mitted within 30 days from the date of tablish that he or she had no actual or

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constructive notice prior to the date shared by the Postal Inspection Service the property became abandoned that he with federal, state, or local law en- or she was entitled to file a claim pur- forcement agencies. Unless the Chief suant to § 946.2 or § 946.4. Publication of Postal Inspector determines that cash notice pursuant to § 946.4 provides con- or the proceeds of the sale of the aban- structive notice unless a claimant can doned property are to be shared with demonstrate circumstances which rea- other law enforcement agencies, such sonably precluded his access to the cash or proceeds shall be deposited in published notice. the Postal Service Fund established by 39 U.S.C. 2003. The authority to make [53 FR 6986, Mar. 4, 1988, as amended at 63 FR this determination may be delegated 8126, Feb. 18, 1998] by the Chief Postal Inspector. § 946.7 Submission of claims. [59 FR 29372, June 7, 1994] Claims submitted pursuant to this part must be submitted on Postal Serv- Rules of Procedure Before the ice Form 1503 which may be obtained Judicial Officer from the Inspector in Charge who has custody of the property. PART 951—PROCEDURE GOV- § 946.8 Determination of claims. ERNING THE ELIGIBILITY OF PER- SONS TO PRACTICE BEFORE THE Upon receipt of a claim under this POSTAL SERVICE part, the Postal Inspection Service must conduct an investigation to de- Sec. termine the merits of the claim. The 951.1 Authority for rules. results of the investigation must be 951.2 Eligibility to practice. submitted to the Chief Postal Inspector 951.3 Persons ineligible for admission to or delegate who must approve or deny practice. the claim by written decision, a copy of 951.4 Authorization of appearance may be which must be forwarded to the claim- required. 951.5 Complaint of misconduct. ant by certified mail. If the claim is 951.6 Censure, suspension or disbarment; approved, the procedures to be followed grounds. by the claimant to obtain return of the 951.7 Notice of disbarment; exclusion from property, or its determined value, must practice. be stated. If the claim is denied, the de- 951.8 Ex parte communications. cision must state the reasons therefor. AUTHORITY: 39 U.S.C. 204, 401. § 946.9 Reconsideration of claims. SOURCE: 36 FR 11562, June 16, 1971, unless otherwise noted. A written request for reconsideration of denied claims may be submitted § 951.1 Authority for rules. within 10 days of the postmarked date The Judicial Officer promulgates of the mailing denying the claim. Such these rules pursuant to authority dele- requests must be addressed to the Chief gated by the Postmaster General. Postal Inspector or delegate and must be based on evidence recently devel- § 951.2 Eligibility to practice. oped or not previously presented. (a) Any individual who is a party to any proceeding before the Judicial Offi- § 946.10 Record retention. cer, the Board of Contract Appeals or Records regarding property subject an Administrative Law Judge may ap- to this part will be retained for a pe- pear for himself or by an attorney at riod of 3 years following return of the law. property to its owner or a determina- (b) The head of any department of tion that the property is abandoned. the Postal Service may establish such special rules and regulations per- § 946.11 Disposition of property de- taining to eligibility to practice before clared abandoned. such department as he may deem to be Property declared abandoned, includ- necessary or desirable. ing cash, and proceeds from the sale of (c) Generally, except as provided in property subject to this part may be § 951.3, any attorney at law who is a

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member in good standing of the Bar of § 951.4 Authorization of appearance the Supreme Court of the United may be required. States or of the highest court of any The Judicial Officer, the head of any State, District, Territory, Protectorate department of the Postal Service or or Possession of the United States, or any Administrative Law Judge may re- of the District of Columbia, and is not quire any person to present satisfac- under any order of any court or execu- tory evidence of his authority to rep- tive department of one of the foregoing resent the person for whom he appears. governmental entities suspending, enjoining, restraining, disbarring, or oth- § 951.5 Complaint of misconduct. erwise restricting him in the practice (a) If the head of any department of of law may represent others before the the Postal Service has reason to be- U.S. Postal Service. lieve, or if complaint be made to him, (d) When any person acting in a rep- that any person is guilty of conduct resentative capacity appears in person subjecting him to suspension or disbar- or signs a paper in practice before the ment, the head of such office shall re- Postal Service his personal appearance port the same to the Judicial Officer. or signature shall constitute a rep- (b) Whenever any person submits to resentation to the Postal Service that the Judicial Officer a complaint under the provisions of this part and against any person who has practiced, the law he is authorized and qualified is practicing or holding himself out as to represent the particular party in entitled to practice before the Postal whose behalf he acts. The Postal Serv- Service, the Judicial Officer may refer ice does not generally take formal ac- such complaint to the Chief Inspector tion or issue any certificate to show for a complete investigation and re- that an individual is eligible to prac- port. tice before it. (See § 951.4.) (c) At any time, the Judicial Officer may refer the complaint to the General § 951.3 Persons ineligible for admis- Counsel for the preparation of formal sion to practice. charges to be lodged against and served (a) No person disbarred from practice upon the person against whom the before the Postal Service or in any complaint has been made. other executive department of any of the governmental entities mentioned § 951.6 Censure, suspension or disbar- in § 951.2(c) will be eligible to practice ment; grounds. before the Postal Service until said (a) The Judicial Officer may censure, order of disbarment shall have been re- suspend or disbar any person against voked. whom a complaint has been made and (b) Any person who, subsequently to upon whom charges have been served being admitted to practice before the as provided in § 951.5 if he finds that Postal Service, is disbarred by any gov- such person: ernmental entity mentioned in (1) Does not possess the qualifica- § 951.2(c) shall be deemed suspended tions required by § 951.2; from practice before the Postal Service (2) Has failed to conform to standards during the pendency of said order or of ethical conduct required of practi- disbarment. tioners at the Bar of any court of (c) No person who has been an attor- which he is a member; ney, officer, clerk, or employee in the (3) Represents, as an associate, an at- Postal Service will be recognized as attorney who, known to him, solicits torney for prosecuting before it or any practice by means of runners or other office thereof any case or matter which unethical methods; he was in anywise connected while he (4) By use of his name, personal ap- was such attorney, officer, clerk, or pearance, or any device, aids or abets employee. an attorney to practice during the pe- (d) No person coming within the pro- riod of his suspension or disbarment, hibitions of 18 U.S.C. 203, 205, or 207, such suspension or disbarment being will be recognized as attorney before known to him; the Postal Service or any office there- (5) Displays toward the Judicial Offi- of. cer, Board of Contract Appeals or any

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Administrative Law Judge assigned to PART 952—RULES OF PRACTICE IN the Postal Service, conduct which, if PROCEEDINGS RELATIVE TO displayed toward any court of any FALSE REPRESENTATION AND State, the United States, any of its LOTTERY ORDERS Territories or the District of Columbia, would be cause for censure, suspension Sec. or disbarment; or 952.1 Authority. (6) Is otherwise guilty of misconduct 952.2 Scope. or lacking in character or professional 952.3 Informal dispositions. integrity. 952.4 Office business hours; electronic filing. 952.5 Complaints. (b) Before any person shall be cen- 952.6 Interim impounding. sured, suspended or disbarred, he shall 952.7 Notice of docketing and answer. be afforded an opportunity to be heard 952.8 Service. by the Judicial Officer on the charges 952.9 Filing; docketing and serving docu- made against him. The General Coun- ments. sel or his designee shall prosecute such 952.10 Answer. 952.11 Default. cases. 952.12 Amendment of pleadings. (c) In the event the Judicial Officer is 952.13 Continuances and extensions. unavailable for any reason, he may as- 952.14 Hearings. sign complaints of misconduct to the 952.15 Change of place of hearings. Associate Judicial Officer, an Adminis- 952.16 Appearances. 952.17 Presiding officers. trative Law Judge appointed pursuant 952.18 Evidence. to the provisions of the Administrative 952.19 Subpoenas. Procedure Act, an Administrative 952.20 Witness fees. Judge appointed pursuant to the provi- 952.21 Discovery. sions of the Contract Disputes Act of 952.22 Transcript. 1978, or some other disinterested mem- 952.23 Proposed findings and conclusions. 952.24 Decisions. ber of the headquarters staff of the 952.25 Exceptions to initial decision or ten- Postal Service recommended by the tative decision. Deputy Postmaster General, for the de- 952.26 Judicial Officer. terminations required by § 951.5, the 952.27 Motion for reconsideration. conduct of the hearings, and the deci- 952.28 Orders. sion to censure, suspend, or debar per- 952.29 Modification or revocation of orders. 952.30 Supplemental orders. sons as provided herein. 952.31 Computation of time. [36 FR 11562, June 16, 1971, as amended at 51 952.32 Official record. FR 16517, May 5, 1986] 952.33 Public information. 952.34 Ex parte communications.

§ 951.7 Notice of disbarment; exclusion AUTHORITY: 39 U.S.C. 204, 401, 3001, 3005, from practice. 3012, 3016; 5 U.S.C. 554. Upon the disbarment of any person, SOURCE: 76 FR 36320, June 22, 2011, unless notice thereof will be given to the otherwise noted. heads of the departments of the Postal Service and to the other Executive De- § 952.1 Authority. partments, and thereafter, until other- These rules of practice are issued by wise ordered, such disbarred persons the Judicial Officer of the United will not be entitled to practice before States Postal Service (see § 952.26) pur- the Postal Service or any department suant to authority delegated by the thereof. Postmaster General, and in accordance with 39 U.S.C. 3005, and are governed by § 951.8 Ex parte communications. the Administrative Procedure Act, 5 U.S.C. 551, et seq. The provisions of 5 U.S.C. 551(14), 556(d) and 557(d) prohibiting ex parte § 952.2 Scope. communications are made applicable These rules of practice shall be appli- to proceedings under these rules of cable in all formal proceedings before practice. the Postal Service under 39 U.S.C. 3005, [42 FR 5357, Jan. 28, 1977] including such cases instituted under

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prior rules of practice pertaining to § 952.6 Interim impounding. these or predecessor statutes, unless In preparation for or during the pend- timely shown to be prejudicial to Re- spondent. ency of a proceeding initiated under 39 U.S.C. 3005, mail addressed to Respond- § 952.3 Informal dispositions. ent may be impounded upon obtaining This part does not preclude the dis- an appropriate order from a United position of any matter by agreement States District Court, as provided in 39 between the parties either before or U.S.C. 3007. after the filing of a complaint when time, the nature of the proceeding, and § 952.7 Notice of docketing and answer. the public interest permit. (a) Upon receipt of a complaint filed § 952.4 Office business hours; elec- against a Respondent whose mailing tronic filing. address is within the United States, (a) The offices of the officials identi- the Recorder shall issue a notice of fied in these rules are located at 2101 docketing and answer due date stating Wilson Boulevard, Suite 600, Arlington, the date for an answer which shall not VA 22201–3078. Normal business hours exceed 30 days from the service of the are between 8:45 a.m. and 4:45 p.m. complaint and a reference to the effect (Eastern Time), Monday through Fri- of failure to file an answer and/or the day except holidays. assessment of civil penalties author- (b) The Judicial Officer electronic fil- ized by 39 U.S.C. 3012. (See §§ 952.10 and ing system Web site is accessible 24 952.11). hours a day at https:// (b) Upon receipt of a complaint filed uspsjoe.justware.com/justiceweb. against a Respondent whose mailing [81 FR 40192, June 21, 2016] address is not within the United States, the Judicial Officer shall re- § 952.5 Complaints. view the complaint and any supporting When the Chief Postal Inspector or information and determine whether a his or her designated representative be- prima facie showing has been made lieves that a person is using the mails that Respondent is engaged in conduct in a manner requiring formal adminis- warranting issuance of the orders au- trative action under 39 U.S.C. 3005, he thorized by 39 U.S.C. 3005(a). Where the or she shall prepare and file with the Judicial Officer concludes that a prima Recorder a complaint which names the facie showing has not been made the person involved; states the name, ad- complaint shall be dismissed. Where dress and telephone number of the at- the Judicial Officer concludes that a torney representing Complainant; prima facie showing has been made, he states the legal authority and jurisdic- or she shall issue a tentative decision tion under which the proceeding is ini- and orders which: tiated; states the facts in a manner suf- (1) Set forth findings of fact and con- ficient to enable the person named clusions of law; therein to answer; and requests the issuance of an appropriate order or or- (2) Direct Respondent to cease and ders and/or the assessment of civil pen- desist from engaging in conduct war- alties. Complainant shall attach to the ranting the issuance of an order au- complaint a copy of the order or orders thorized by 39 U.S.C. 3005(a); requested which may, at any time dur- (3) Direct that postal money orders ing the proceedings, be modified. The drawn to the order of Respondent not person named in the complaint shall be be paid for 45 days from date of the ten- known as ‘‘Respondent’’, and the Chief tative decision; Postal Inspector or his or her designee (4) Direct that mail addressed to Re- shall be known as ‘‘Complainant’’. The spondent be forwarded to designated fa- term ‘‘person’’ (1 U.S.C. 1) shall include cilities and detained for 45 days from any name, address, number or other the date of the tentative decision sub- designation under or by use of which ject to survey by Respondent and re- Respondent seeks remittances of lease of mail unrelated to the matter money or property through the mail. complained of;

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(5) Tentatively assess such civil pen- the address cited in the complaint. A alties as he considers appropriate written statement by the Recorder not- under applicable law; and ing the time and place of mailing shall (6) Provide that unless Respondent be accepted as evidence of service in presents, within 45 days of the date of the event a signed return receipt is not the tentative decision, good cause for returned to the Recorder. dismissing the complaint, or modifying the tentative decision and orders, the § 952.9 Filing; docketing and serving tentative decision and orders shall be- documents. come final. (a) Unless the presiding officer per- (c) The Judicial Officer may, upon a mits otherwise, all documents must be showing of good cause made within 45 filed using the electronic filing system. days of the date of the tentative deci- Documents submitted using the elec- sion, hold a hearing to determine tronic filing system are considered whether the tentative decision and or- filed as of the date/time (Eastern Time) ders should be revoked, modified, or al- reflected in the system. Documents lowed to become final. Should a hear- mailed to the Recorder are considered ing be granted, the Judicial Officer filed on the date mailed as evidenced may modify the tentative decision and by a United States Postal Service post- orders to extend the time during which mark. Filings by any other means are the payment of postal money orders considered filed upon receipt by the payable to Respondent is suspended Recorder of a complete copy of the fil- and mail addressed to Respondent is ing during normal business hours. Dis- detained. covery need not be filed except as may be sought to be included in the record, § 952.8 Service. or as may be ordered by the presiding (a) Where Respondent’s mailing ad- officer. dress is within the United States, the (b) Documents shall be dated and Recorder shall cause a notice of dock- state the docket number and title of eting and answer due date (the ‘‘No- the proceeding. Any pleading or other tice’’), a copy of these rules of practice, document required by order of the pre- and a copy of the complaint to be siding officer to be filed by a specified transmitted to Complainant who shall date must be received in the electronic serve those documents upon Respond- filing system or by the Recorder on or ent or his or her agent by certified before such date. If both parties are mail, return receipt requested. Service participating in the electronic filing system, separate service upon the op- shall be complete upon mailing. A re- posing party is not required. Other- ceipt acknowledging delivery of the no- wise, documents shall be served person- tice shall be secured from Respondent ally or by mail on the opposing party, or his or her agent and forwarded to noting on the document filed, or on the the Recorder, U.S. Postal Service, 2101 transmitting letter, that a copy has Wilson Boulevard, Suite 600, Arlington, been so furnished. VA 22201–3078, to become a part of the official record. In the absence of a re- [81 FR 40192, June 21, 2016] ceipt, Complainant shall file an Affi- davit of Service, along with returned § 952.10 Answer. undelivered mail, or other appropriate (a) The answer shall contain a con- evidence of service, with the Recorder. cise statement admitting, denying, or In the alternative Complainant may, in explaining each of the allegations set its discretion, effectuate service by forth in the complaint. hand on Respondent and file an Affi- (b) Any facts alleged in the com- davit of Service with the Recorder. plaint which are not denied or are ex- (b) Where the only address against pressly admitted in the answer may be which Complainant seeks relief is out- considered as proved, and no further side the United States, a copy of the evidence regarding these facts need be complaint, the tentative decision, and adduced at the hearing. a copy of these rules of practice shall (c) The answer shall be signed person- be sent by international mail, return ally by an individual Respondent, or in receipt requested, by the Recorder to the case of a partnership by one of the

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partners, or, in the case of a corpora- at any time prior to the close of the tion or association, by an officer there- hearing and, provided that the amend- of. ment is reasonably within the scope of (d) The answer shall set forth Re- the proceeding initiated by the com- spondent’s address, electronic mail ad- plaint, the presiding officer rule on the dress, and telephone number or the motion as he or she deems to be fair name, address, electronic mail address, and equitable to the parties. and telephone number of an attorney (c) When issues not raised by the representing Respondent. pleadings but reasonably within the (e) The answer shall affirmatively scope of the proceedings initiated by state whether the Respondent will ap- the complaint are tried by express or pear in person or by counsel at the implied consent of the parties, they hearing. shall be treated in all respects as if (f) In lieu of appearing at the hearing they had been raised in the pleadings. in person or by counsel, Respondent Such amendments as may be necessary may request that the matter be sub- to conform the pleadings to the evi- mitted for determination pursuant to dence and to raise such issues may be § 952.17(b)(10). allowed at any time upon the motion of any party. § 952.11 Default. (d) If a party objects to the introduc- (a) If Respondent fails to file an an- tion of evidence at the hearing on the swer within the time specified in the ground that it is not within the issues notice of docketing and answer, Re- raised by the pleadings, but fails to spondent may be deemed in default, satisfy the presiding officer that an and to have waived hearing and further amendment of the pleadings would procedural steps. The Judicial Officer prejudice him or her on the merits, the may thereafter issue orders and/or as- presiding officer may allow the plead- sess civil penalties without further no- ings to be amended and may grant a tice. continuance to enable the objecting (b) If Respondent files an answer but party to rebut the evidence presented. fails to appear at the hearing, Respond- (e) The presiding officer may, upon ent may, unless timely indications to reasonable notice and upon such terms the contrary are received, be deemed to as are just, permit service of a supple- have abandoned the intention to mental pleading setting forth trans- present a defense to the charges of the actions, occurrences, or events which complaint, and the Judicial Officer, have occurred since the date of the without further notice to Respondent, pleading sought to be supplemented may issue the orders and/or assess civil and which are relevant to any of the penalties sought in the complaint. issues involved. (c) If Respondent or Complainant fails to respond to or comply with an § 952.13 Continuances and extensions. order of the presiding officer, the party Continuances and extensions will not may be held in default, and absent good be granted by the presiding officer ex- cause shown, the party may be deemed cept for good cause shown. to have abandoned the intention to present a defense, or to prosecute the § 952.14 Hearings. complaint, and the presiding officer or Hearings are held at 2101 Wilson Bou- Judicial Officer, without further notice levard, Suite 600, Arlington, VA 22201– to the offending party, may, as appro- 3078, or other locations designated by priate, dismiss the complaint or issue the presiding officer. Time, date, and the orders and/or assess civil penalties location for the hearing shall be set by sought in the complaint. the presiding officer in his or her sole discretion. § 952.12 Amendment of pleadings. (a) Amendments shall be filed with § 952.15 Change of place of hearings. the Recorder. (a) A party may file a request that a (b) By consent of the parties, a plead- hearing be held to receive evidence in ing may be amended at any time. Also, his or her behalf at a place other than a party may move to amend a pleading that designated in § 952.14. The party

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shall support the request with a state- (4) Order any pleading amended upon ment outlining: motion of a party at any time prior to (1) The evidence to be offered in such the close of the hearing; place; (5) Maintain discipline and decorum (2) The names and addresses of the and exclude from the hearing any per- witnesses who will testify; and, son acting in an inappropriate manner; (3) The reasons why such evidence (6) Require the filing of briefs or cannot be produced at Arlington, VA. memoranda of law on any matter upon (b) The presiding officer shall give which he or she is required to rule; consideration to the convenience and (7) Order prehearing conferences for the purpose of the settlement or sim- necessity of the parties and witnesses plification of issues by the parties; and the relevance of the evidence to be (8) Order the proceeding reopened at offered. any time prior to his or her decision § 952.16 Appearances. for the receipt of additional evidence; (9) Render an initial decision, which (a) Respondent may appear and be becomes the final agency decision un- heard in person or by attorney. A No- less a timely appeal is taken, except tice of Appearance must be filed by any that the Judicial Officer may issue a attorney representing Respondent. tentative or a final decision; (b) An attorney may practice before (10) Rule on motion by either party, the Postal Service in accordance with or on his or her own initiative, for a de- applicable rules issued by the Judicial termination on the written record in Officer. See 39 CFR Part 951. lieu of an oral hearing in his or her sole (c) When Respondent is represented discretion; by an attorney, all pleadings and other (11) Rule on motion by either party, papers subsequent to the complaint or on his or her own initiative, to per- shall be mailed to the attorney. mit a hearing to be conducted by tele- (d) Withdrawal by any attorney rep- phone, video conference, or other ap- resenting a party must be preceded by propriate means; a motion to withdraw stating the rea- (12) Rule upon applications and re- sons therefore, and shall be granted in quests filed under §§ 952.19 and 952.21; the discretion of the presiding officer. and If a successor attorney is not appointed (13) Exercise all other authority con- at the same time, withdrawing counsel ferred upon the presiding officer by the shall provide adequate contact infor- Administrative Procedure Act or other mation for Respondent. applicable law. (e) Parties must promptly file a no- § 952.18 Evidence. tice of change of attorney. (a) Except as otherwise provided in § 952.17 Presiding officers. these rules, the Federal Rules of Evi- dence shall govern. However, such rules (a) The presiding officer at any hear- may be relaxed to the extent that the ing shall be an Administrative Law presiding officer deems proper to en- Judge qualified in accordance with law sure a fair hearing. The presiding offi- or the Judicial Officer (39 U.S.C. 204). cer may exclude irrelevant, immate- The Chief Administrative Law Judge rial, or repetitious evidence. shall assign cases. The Judicial Officer (b) Testimony shall be under oath or may, for good cause shown, preside at affirmation and witnesses shall be sub- the hearing if an Administrative Law ject to cross-examination. Judge is unavailable. (c) Agreed statements of fact may be (b) The presiding officer shall have received in evidence. authority to: (d) Official notice, judicial notice or (1) Administer oaths and affirma- administrative notice of appropriate tions; information may be taken in the dis- (2) Examine witnesses; cretion of the presiding officer. (3) Rule upon offers of proof, admissi- (e) Authoritative writings of the bility of evidence, and matters of pro- medical or other sciences may be ad- cedure; mitted in evidence, but only through

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the testimony of expert witnesses or by (ii) Fifteen (15) days before a sched- stipulation. uled hearing where the attendance of a (f) Lay testimonials may be received witness at a hearing is sought. in evidence as proof of the efficacy or (2) A request for a subpoena shall quality of any product, service, or state the reasonable scope and rel- thing sold through the mails, in the evance to the case of the testimony discretion of the presiding officer. and of any records sought. (g) The written statement of a com- (3) The presiding officer, in his or her petent witness may be received in evi- sole discretion, may honor requests for dence provided that such statement is subpoenas not presented within the relevant to the issues, that the witness time limitations specified in this para- shall testify under oath at the hearing graph. that the statement is in all respects (d) Motion to quash or modify. (1) Upon true, and, in the case of expert wit- written request by the person subpoe- nesses, that the statement correctly naed or by a party, the presiding offi- states the witness’s opinion or knowl- cer may: edge concerning the matters in ques- (i) Quash or modify the subpoena if it tion. is unreasonable, oppressive or for other (h) A party which objects to the ad- good cause shown, or mission of evidence shall explain the (ii) Require the person in whose be- grounds for the objection. Formal ex- half the subpoena was issued to ad- ceptions to the rulings of the presiding vance the reasonable cost of producing officer are unnecessary. subpoenaed records. Where circumstances require, the presiding offi- § 952.19 Subpoenas. cer may act upon such a request at any (a) General. Upon written request of time after a copy has been served upon either party filed with the Recorder or the opposing party. on his or her own initiative, the pre- (2) Motions to quash or modify a sub- siding officer may issue a subpoena re- poena shall be filed within 10 days of quiring: service, or at least one day prior to any (1) Testimony at a deposition. The de- scheduled hearing, whichever first oc- posing of a witness in the city or coun- curs. The presiding officer, in his or her ty where the witness resides or is em- sole discretion, may entertain motions ployed or transacts business in person, to quash or modify not made within or at another location convenient for the time limitations specified in this the witness that is specifically deter- paragraph. mined by the presiding officer; (e) Form; issuance. (1) Every subpoena (2) Testimony at a hearing. The attend- shall state the title of the proceeding, ance of a witness for the purpose of shall cite 39 U.S.C. 3016(a)(2) as the au- taking testimony at a hearing; and thority under which it is issued, and (3) Production of records. The produc- shall command each person to whom it tion by the witness at a deposition or is directed to attend and give testi- hearing of records designated in the mony, and if appropriate, to produce subpoena. specified records at a time and place (b) Voluntary cooperation. Each party therein specified. In issuing a subpoena is expected: to a requesting party, the presiding of- (1) To cooperate and make available ficer shall sign the subpoena and may, witnesses and evidence under its pos- in his or her discretion, enter the name session, custody or control as re- of the witness and otherwise leave it quested by the other party, without blank. The party to whom the sub- issuance of a subpoena, and poena is issued shall complete the sub- (2) To secure voluntary production of poena before service. desired third-party records whenever (2) The party at whose instance a possible. subpoena is issued shall be responsible (c) Requests for subpoenas. (1) A re- for the payment of fees and mileage of quest for a subpoena shall to the extent the witness in accordance with 28 practical be filed: U.S.C. 1821, or other applicable law, (i) At the same time a request for and of the officer who serves the sub- deposition is filed; or poena. The failure to make payment of

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such charges on demand may be (5) Service on natural persons. Service deemed by the presiding officer as suf- of any subpoena may be made upon any ficient ground for striking the testi- natural person by: mony of the witness and the evidence (i) Delivering a duly executed copy to the witness has produced. the person to be served; or (f)(1) Service in general. The party re- (ii) Depositing such copy in the questing issuance of a subpoena shall United States mails, by registered or arrange for service. certified mail, return receipt re- (2) Service within the United States. A quested, duly addressed to such person subpoena issued under this section may at his or her residence or principal of- be served by a person designated under fice or place of business. 18 U.S.C. 3061 or by a United States (6) Verified return. A verified return marshal or deputy marshal, or by any by the individual serving any such sub- other person who is not a party and not poena setting forth the manner of such less than 18 years of age at any place service shall constitute proof of serv- within the territorial jurisdiction of ice. In the case of service by registered any court of the United States. or certified mail, such return shall be (3) Service outside the United States. accompanied by the return post office Any such subpoena may be served upon receipt of delivery of such subpoena, or any person who is not to be found with- a statement of service by registered or in the territorial jurisdiction of any certified mail in the event that receipt court of the United States, in such of delivery is unavailable. manner as the Federal Rules of Civil (g) Contumacy or refusal to obey a sub- Procedure prescribe for service in a for- poena. In the case of refusal to obey a eign country. To the extent that the subpoena, the Judicial Officer may re- courts of the United States may assert quest the Attorney General to petition jurisdiction over such person con- the district court for any district in sistent with due process, the United which the person receiving the sub- States District Court for the District poena resides, is found, or conducts of Columbia shall have the same juris- business (or in the case of a person out- diction to take any action respecting side the territorial jurisdiction of any compliance with this section by such district court, the district court for the person that such court would have if District of Columbia) to issue an appro- such person were personally within the priate order for the enforcement of jurisdiction of such court. such subpoena. Any failure to obey (4) Service on business persons. Service such order of the court may be punish- of any such subpoena may be made able as contempt. upon a partnership, corporation, association, or other legal entity by: § 952.20 Witness fees. (i) Delivering a duly executed copy The Postal Service does not pay fees thereof to any partner, executive offi- and expenses for Respondent’s wit- cer, managing agent, or general agent nesses or for depositions requested by thereof, or to any agent thereof au- Respondent, unless otherwise ordered thorized by appointment or by law to by the presiding officer. receive service of process on behalf of such partnership, corporation, associa- § 952.21 Discovery. tion, or entity; (a) Voluntary discovery. The parties (ii) Delivering a duly executed copy are encouraged to engage in voluntary thereof to the principal office or place discovery procedures. In connection of business of the partnership, corpora- with any deposition or other discovery tion, association, or entity; or procedure, the presiding officer may (iii) Depositing such copy in the issue any order which justice requires United States mails, by registered or to protect a party or person from an- certified mail, return receipt re- noyance, embarrassment, oppression, quested, duly addressed to such part- or undue burden or expense, and those nership, corporation, association, or orders may include limitations on the entity at its principal office or place of scope, method, time and place for dis- business. covery, and provisions for protecting

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the secrecy of confidential information the failure of a party to respond timely or documents. and fully to the request for admissions. (b) Discovery disputes. The parties are (f) Requests for production of docu- required to make a good faith effort to ments. At any time after service of the resolve objections to discovery re- complaint, a party may serve on the quests informally. A party receiving an other party written requests for the objection to a discovery request, or a production, inspection, and copying of party which believes that another par- any documents, electronically stored ty’s response to a discovery request is information, or things, to be answered incomplete or entirely absent, may file within 30 days. Upon timely objection, a motion to compel a response, but the presiding officer will determine the such a motion must include a represen- extent to which the requests must be tation that the moving party has tried satisfied, and if the parties cannot in good faith, prior to filing the mo- themselves agree thereon, the pre- tion, to resolve the matter informally. siding officer shall specify just terms The motion to compel shall include a and conditions for compliance. copy of each discovery request at issue (g) Depositions. Except as stated here- and the response, if any. in, depositions shall be conducted in (c) Discovery limitations. The presiding accordance with Rule 30 of the Federal officer may limit the frequency or ex- Rules of Civil Procedure. tent of use of discovery methods de- (1) After a complaint has been filed scribed in these rules. In doing so, gen- and docketed, the parties may mutu- erally the presiding officer will con- ally agree to, or the presiding officer sider whether: may, upon application of either party (1) The discovery sought is unreason- and for good cause shown, order the ably cumulative or duplicative, or is taking of testimony of any person by obtainable from some other source that deposition upon oral examination or is more convenient, less burdensome, written interrogatories before any offi- or less expensive; cer authorized to administer oaths at (2) The party seeking discovery has the place of examination, for use as had ample opportunity by discovery in evidence or for purpose of discovery. the case to obtain the information The application for order shall specify sought; or whether the purpose of the deposition (3) The discovery is unduly burden- is discovery or for use as evidence. some and expensive, taking into ac- (2) The time, place, and manner of count the needs of the case, the conducting depositions shall be as mu- amount in controversy, limitations on tually agreed by the parties or, failing the parties’ resources, and the impor- such agreement, and upon proper appli- tance of the issues at stake. cation, governed by order of the pre- (d) Interrogatories. At any time after siding officer. service of the complaint, a party may (3) No testimony taken by deposition serve on the other party written inter- shall be considered as part of the evi- rogatories to be answered separately in dence in the hearing of an appeal un- writing, signed under oath and re- less and until such testimony is offered turned within 30 days. Upon timely ob- and received in evidence at or before jection, the presiding officer will deter- such hearing. It will not ordinarily be mine the extent to which the interrog- received in evidence if the deponent is atories will be permitted. available to testify at the hearing, but (e) Requests for admission. At any time the presiding officer may admit testi- after service of the complaint, a party mony taken by deposition in his or her may serve upon the other party a re- discretion. A deposition may be used to quest for the admission of specified contradict or impeach the testimony of facts. Within 30 days after service, the the witness given at the hearing. In party served shall answer each re- cases submitted on the written record quested fact or file objections thereto. in lieu of an oral hearing, the presiding The factual propositions set out in the officer may, in his or her discretion, re- request may be ordered by the pre- ceive depositions as evidence in sup- siding officer as deemed admitted upon plementation of that record.

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(4) Each party shall bear its own ex- the receipt by any party of a copy of penses associated with the taking of the official transcript, or any part any deposition unless otherwise or- thereof, he or she may file a motion re- dered by the presiding officer. questing correction of the transcript. (h) Sanctions. If a party fails to ap- Opposing counsel shall, within such pear for a deposition, after being served time as may be specified by the pre- with a proper notice, or fails to serve siding officer, notify the presiding offi- answers or objections to interrog- cer in writing of his or her concurrence atories, requests for admissions, or re- or disagreement with the requested quests for the production or inspection corrections. Failure to interpose time- of documents, after proper service, the ly objection to a proposed correction party seeking discovery may request shall be considered to be concurrence. that the presiding officer impose ap- Thereafter, the presiding officer shall propriate orders. Failure of a party to by order specify the corrections to be comply with an order pursuant to this made in the transcript. The presiding rule may result in the presiding offi- officer on his or her own initiative may cer’s ruling that the disobedient party order corrections to be made in the may not support or oppose designated transcript with prompt notice to the charges or defenses or may not intro- parties of the proceeding. Any changes duce designated matters in evidence. ordered by the presiding officer other The presiding officer may also infer than by agreement of the parties shall from the disobedient party’s failure to be subject to objection and exception. comply with the order that the facts to which the order related would, if pro- § 952.23 Proposed findings and conclu- duced or admitted, be adverse to such sions. party’s interests. In the sole discretion (a) Each party to a proceeding, ex- of the presiding officer, failure of a cept one who fails to answer the com- party to comply with an order pursu- plaint or, having answered, either fails ant to this rule may result in the pre- to appear at the hearing or indicates in siding officer’s issuance of an order of the answer that he or she does not de- default under § 952.11(c). sire to appear, may, unless at the discretion of the presiding officer such is § 952.22 Transcript. not appropriate, submit proposed find- (a) Hearings shall be reported and ings of fact, conclusions of law, orders transcribed by a court reporter. Argu- and supporting reasons either in oral ment upon any matter may be excluded or written form in the discretion of the from the transcript by order of the pre- presiding officer. The presiding officer siding officer. A copy of the transcript may also require parties to any pro- shall be a part of the record and the ceeding to submit proposed findings of sole official transcript of the pro- fact, conclusions of law, orders, and ceeding. Copies of the transcript shall supporting reasons. Unless given oral- be supplied to the parties to the pro- ly, the date set for filing of proposed ceeding by the reporter at rates not to findings of fact, conclusions of law, or- exceed the maximum rates fixed by ders and supporting reasons shall be contract between the Postal Service within 30 days after the delivery of the and the reporter. Copies of parts of the official transcript to the Recorder who official record including exhibits ad- shall notify both parties of the date of mitted into evidence, other than the its receipt. The filing date for proposed transcript, may be obtained by Re- findings of fact, conclusions of law, or- spondent from the Recorder upon the ders and supporting reasons shall be payment of reasonable copying the same for both parties. If not sub- charges. Items that cannot reasonably mitted by such date, or unless exten- be photocopied may be photographed sion of time for the filing thereof is and furnished in that form. granted, they will not be included in (b) Changes in the official transcript the record or given consideration. may be ordered by the presiding officer (b) Except when presented orally be- only to correct errors affecting sub- fore the close of the hearing, proposed stance and then only in the manner findings of fact shall be set forth in se- herein provided. Within 10 days after rially numbered paragraphs and shall

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state with particularity all evidentiary to the date set for the hearing. Either facts in the record with appropriate ci- party may submit proposed findings, tations to the transcript or exhibits conclusions, and proposed orders either supporting the proposed findings. Each orally or in writing at the conclusion proposed conclusion shall be separately of the hearing. stated. (c) Except when presented orally be- § 952.25 Exceptions to initial decision fore the close of the hearing, proposed or tentative decision. orders shall state the statutory basis of (a) A party in a proceeding presided the order and, with respect to orders over by an Administrative Law Judge proposed to be issued pursuant to 39 may appeal to the Judicial Officer by U.S.C. 3005(a)(3), shall be set forth in filing exceptions in a brief on appeal serially numbered paragraphs stating within 15 days from the receipt of the with particularity the representations Administrative Law Judge’s initial de- Respondent and its representative shall cision. cease and desist from using for the pur- (b) A party in a proceeding presided pose of obtaining money or property over by the Judicial Officer may file through the mail. exceptions within 15 days from the re- § 952.24 Decisions. ceipt of the Judicial Officer’s tentative decision. (a) Initial decision by Administrative (c) If an initial or tentative decision Law Judge. A written initial decision is rendered orally by the presiding offi- shall be rendered by an Administrative cer at the close of the hearing, he or Law Judge as soon as practical after she may then orally provide notice to completion of the hearing, or after the parties participating in the hearing close of the record in matters heard of the time limit within which an ap- upon the written record in lieu of an peal must be filed. oral hearing under § 952.17(b)(10). The (d) The date for filing the reply to an initial decision shall include findings appeal brief or to a brief in support of and conclusions with the reasons there- exceptions to a tentative decision by for upon all the material issues of fact the Judicial Officer is 10 days after the or law presented on the record, and the receipt thereof. No additional briefs appropriate orders or denial thereof. shall be received unless requested by The initial decision shall become the the Judicial Officer. final agency decision unless an appeal is taken in accordance with § 952.25. (e) Briefs upon appeal or in support of (b) Tentative or final decision by the exceptions to a tentative decision by Judicial Officer. When the Judicial Offi- the Judicial Officer and replies thereto cer presides at the hearing he or she shall be filed in duplicate with the Re- shall issue a final or a tentative deci- corder and contain the following mat- sion. Such decision shall include find- ter: ings and conclusions with the reasons (1) A subject index of the matters therefor upon all the material issues of presented, with page references; a table fact or law presented on the record, of cases alphabetically arranged; a list and the appropriate orders or denial of statutes and texts cited with page thereof. The tentative decision shall references; become the final agency decision un- (2) A concise abstract or statement of less exceptions are filed in accordance the case in briefs on appeal or in sup- with § 952.25. port of exceptions; (c) Oral decisions. The presiding offi- (3) Numbered exceptions to specific cer may render an oral decision (an ini- findings and conclusions of fact, con- tial decision by an Administrative Law clusions of law, or recommended orders Judge, or a tentative or final decision of the presiding officer in briefs on ap- by the Judicial Officer) at the close of peal or in support of exceptions; and the hearing when the nature of the (4) A concise argument clearly set- case and the public interest warrant. A ting forth points of fact and of law re- party which desires an oral decision lied upon in support of or in opposition shall notify the presiding officer and to each exception taken, together with the opposing party at least 5 days prior specific references to the parts of the

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record and the legal or other authori- lished in the Postal Bulletin and cause ties relied upon. the order to be transmitted to such (f) Unless permission is granted by postmasters and other officers and em- the Judicial Officer no brief shall ex- ployees of the Postal Service as may be ceed 50 printed pages double spaced, required to place the order into effect. using 12 point type. (b) If an order is issued which re- (g) The Judicial Officer will extend quires Respondent to cease and desist the time to file briefs only upon writ- from using certain representations for ten application for good cause shown. the purpose of obtaining money or If the appeal brief or brief in support of property through the mail, it shall be exceptions is not filed within the time incorporated in the record of the pro- prescribed, the defaulting party may be ceeding and a copy thereof shall be deemed to have abandoned the appeal served upon Respondent or his or her or or waived the exceptions, and the ini- its agent by certified mail or by per- tial or tentative decision shall become sonal service, or if no person can be the final agency decision. found to accept service, service shall be accomplished by ordinary mail to the § 952.26 Judicial Officer. last known address of Respondent or (a) The Judicial Officer is authorized: his or her or its agent. If service is not (1) To act as presiding officer; accomplished by certified mail, a state- (2) To render tentative decisions; ment, showing the time and place of (3) To render final agency decisions; delivery, signed by the postal employee (4) To issue Postal Service orders for who delivered the order, shall be for- the Postmaster General; warded to the Recorder. (5) To refer the record in any proceeding to the Postmaster General or § 952.29 Modification or revocation of the Deputy Postmaster General for orders. final agency decision; A party against which an order or or- (6) To remand a case to the presiding ders have been issued may file an appli- officer for consideration; and, cation for modification or revocation (7) To revise or amend these rules of thereof. The Recorder shall transmit a practice. copy of the application to the Chief (b) In determining appeals from ini- Postal Inspector or his or her designee, tial decisions or exceptions to ten- who shall file a written reply within 10 tative decisions, the entire official days after filing or such other period as record will be considered before a final the Judicial Officer may order. A copy agency decision is rendered. Before of the reply shall be sent to the appli- rendering a final agency decision, the cant by the Recorder. Thereafter an Judicial Officer may order the hearing order granting or denying such applica- reopened for the presentation of addition will be issued by the Judicial Offi- tional evidence by the parties. cer.

§ 952.27 Motion for reconsideration. § 952.30 Supplemental orders. A party may file a motion for recon- When the Chief Postal Inspector or sideration of a final agency decision his or her designee, or the Chief Postal within 10 days after receiving it or Inspector’s designated representative within such longer period as the Judi- shall have reason to believe that a per- cial Officer may order. Each motion for son is evading or attempting to evade reconsideration shall be accompanied the provisions of any such orders by by a brief clearly setting forth the conducting the same or a similar enter- points of fact and of law relied upon in prise under a different name or at a dif- support of said motion. ferent address, he or she may file a petition with accompanying evidence set- § 952.28 Orders. ting forth the alleged evasion or at- (a) If an order is issued which pro- tempted evasion and requesting the hibits delivery of mail to Respondent it issuance of a supplemental order or or- shall be incorporated in the record of ders against the name or names alleg- the proceeding. The Recorder shall edly used. Notice shall then be given by cause notice of the order to be pub- the Recorder to the person that the

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order has been requested and that an 953.14 Final Agency decision. answer may be filed within 10 days of 953.15 Expedition. the notice. The Judicial Officer, for 953.16 Disposition. good cause shown, may hold a hearing 953.17 Ex parte communications. to consider the issues in controversy, AUTHORITY: 39 U.S.C. 204, 401, 3001; 5 U.S.C. and shall, in any event, render a final 554. decision granting or denying the sup- SOURCE: 59 FR 31538, June 20, 1994, unless plemental order or orders. otherwise noted.

§ 952.31 Computation of time. § 953.1 Authority for rules. A designated period of time under These rules of practice are issued by these rules excludes the day the period the Judicial Officer of the U.S. Postal begins, and includes the last day of the Service pursuant to authority dele- period unless the last day is a Satur- gated by the Postmaster General. day, Sunday, or legal holiday, in which event the period runs until the close of § 953.2 Initiation. business on the next business day. Mailability proceedings are initiated § 952.32 Official record. upon the filing of an appeal in the Ju- The hearing transcript together with dicial Officer electronic filing system all pleadings, orders, exhibits, briefs at https://uspsjoe.justware.com/justiceweb and other documents filed in the pro- or with the Recorder, Judicial Officer ceeding shall constitute the official Department, U.S. Postal Service, 2101 record of the proceeding. Wilson Boulevard, Suite 600, Arlington, VA 22201–3078. § 952.33 Public information. [81 FR 40192, June 21, 2016] The Librarian of the Postal Service maintains for public inspection in the § 953.3 Appeal. Library copies of all initial, tentative The appeal shall: and final agency decisions and orders. (a) Identify the appellant; The Recorder maintains the complete (b) Describe or be accompanied by a official record of every proceeding. copy of the determination or ruling § 952.34 Ex parte communications. being appealed; (c) Describe the character or content The provisions of 5 U.S.C. 551(14), of the matter the appellant wishes to 556(d), and 557(d) prohibiting ex parte have carried and delivered by the U.S. communications apply to proceedings Postal Service; under these rules of practice. (d) Request review of the determination or ruling, specifying each and PART 953—RULES OF PRACTICE IN every reason why the appellant be- PROCEEDINGS RELATIVE TO lieves the determination or ruling MAILABILITY should be reversed; (e) Indicate whether the appellant de- Sec. sires to have an oral hearing or, in- 953.1 Authority for rules. stead, to have the case decided solely 953.2 Initiation. on the basis of the written record (i.e., 953.3 Appeal. 953.4 Filing, docketing and serving docu- the appeal, the General Counsel’s or ments; service of notice; reply; motion Chief Postal Inspector’s or his or her for summary judgment. designee’s reply reply, and any docu- 953.5 Hearings. ments submitted by the parties pursu- 953.6 Compromise and informal dispositions. ant to an order of the presiding offi- 953.7 Default; Appearances. cer); and 953.8 Location of hearing. (f) Bear the signature, typed or print- 953.9 Change of place of hearing. ed name, title, business address, and 953.10 Presiding officers. 953.11 Proposed findings of fact and conclu- telephone number of any attorney at sions of law. law representing the appellant in 953.12 Initial decision. bringing the appeal, and of each indi- 953.13 Appeal from initial decision. vidual appellant or, if the appellant is

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a partnership, corporation, limited li- uments on the appellant. If the appel- ability company, or unincorporated as- lant cannot be found within 3 days, the sociation, of the managing partner, postmaster shall send these documents chief executive officer, chief operating to the appellant by ordinary mail and officer, or other officer authorized to forward a statement to the Recorder bind the organization. that is signed by the delivering em- [59 FR 31538, June 20, 1994, as amended at 71 ployee and that specifies the time and FR 53972, Sept. 13, 2006] place of delivery. (iii) When the appellant’s address is § 953.4 Filing, docketing and serving outside the United States, the notice, documents; service of notice; reply; with a copy of the appeal, shall be sent motion for summary judgment. to the appellant by registered mail, re- (a) Filing. Unless the presiding officer turn receipt requested. A written state- permits otherwise, all documents must ment by the Recorder, noting the time be filed using the electronic filing sys- and place of mailing, shall be accepted tem. Documents submitted using the as proof of service in the event a signed electronic filing system are considered and dated return receipt is not re- filed as of the date/time (Eastern Time) ceived. reflected in the system. Documents (c) Reply. The General Counsel, the mailed to the Recorder are considered Chief Postal Inspector, or that officer’s filed on the date mailed as evidenced designee shall file a reply within the by a United States Postal Service post- aforementioned 15-day period or any mark. Filings by any other means are period granted by the presiding officer considered filed upon receipt by the for good cause shown. If the reply so Recorder of a complete copy of the fil- filed fails to address any additional al- ing during normal business hours. Nor- legation in the appeal, that allegation mal business hours are between 8:45 shall be deemed admitted. a.m. and 4:45 p.m. (Eastern Time), Mon- (d) Motion for summary judgment. day through Friday except holidays. If Upon motion of the General Counsel, both parties are participating in the the Chief Postal Inspector, that offi- electronic filing system, separate serv- cer’s designee, or the appellant, or on ice upon the opposing party is not re- the presiding officer’s own initiative, quired. Otherwise, documents shall be the presiding officer may find that the served personally or by mail on the op- appeal and answer present no genuine posing party, noting on the document and material issues of fact requiring an filed, or on the transmitting letter, evidentiary hearing, and thereupon that a copy has been so furnished. may render an initial decision uphold- (b) Service of notice. (1) Upon receiving ing or reversing the determination or the appeal, the Recorder shall issue a ruling. The initial decision shall be- notice specifying that the Postal Serv- come the final Agency decision if a ice General Counsel’s or Chief Postal timely appeal is not taken. Inspector or his or her designee’s reply shall be filed within 15 days of receipt [81 FR 40192, June 21, 2016] of the notice. (2) The Recorder shall promptly serve § 953.5 Hearings. this notice on the parties as follows: (a) In general, admissibility of evi- (i) The notice, with a copy of the ap- dence at hearings conducted under this peal, shall be sent to the General Coun- part hinges on relevancy and materi- sel or the Chief Postal Inspector or his ality. However, relevant evidence may or her designee. be excluded if its probative value is (ii) When the appellant’s address is substantially outweighed by the danger within the United States, the notice, of unfair prejudice, or by consider- with a copy of the appeal, shall be sent ations of undue delay, or by needless to the postmaster at the office that de- presentation of cumulative evidence. livers mail to the appellant’s address. Testimony shall be given under oath or The postmaster shall be instructed affirmation, and witnesses are subject that, acting personally or through a to cross-examination. Stipulations of supervisory employee or a postal in- fact are encouraged and may be re- spector, he or she is to serve these doc- ceived in evidence.

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(b) Objections to the admission or ex- lington, VA 22201–3078, on the date set clusion of evidence shall be in short in the notice. form, stating the grounds of objections [63 FR 66050, Dec. 1, 1998] relied upon. The transcript shall not include argument or debate thereon ex- § 953.9 Change of place of hearing. cept as ordered by the presiding officer. (a) Not later than the date fixed for Rulings on such objections shall be a the filing of the reply, a party may file part of the transcript. a motion that the scheduled hearing be (c) Formal exceptions to the rulings held at a place other than that des- of the presiding officer made during ignated in the notice. The motion shall the course of the hearing are unneces- include a supporting statement out- sary. For all purposes for which an ex- lining: ception otherwise would be taken, it is (1) The evidence to be offered in such sufficient that a party, when the ruling place; of the presiding officer is made or (2) The names and addresses of the sought, makes known the action he de- witnesses who will testify; and sires the presiding officer to take or his (3) The reasons why such evidence objection to an action taken, and his cannot be presented in Arlington, VA. grounds therefor. (b) In ruling on the motion, the presiding officer shall consider the con- § 953.6 Compromise and informal dis- venience and necessity of the parties positions. and the relevancy of the evidence to be Either party may request the other offered. to consider informal disposition of any [59 FR 31538, June 20, 1994, as amended at 63 question of mailability, and the sched- FR 66050, Dec. 1, 1998] uled hearing date may be postponed by the presiding officer for such period of § 953.10 Presiding Officers. time as may be necessary to accommo- The presiding officer at any hearing date settlement discussions between shall be an Administrative Law Judge the parties. qualified in accordance with law or the Judicial Officer (39 U.S.C. 204). The § 953.7 Default; Appearances. Chief Administrative Law Judge shall assign cases. The Judicial Officer may If a timely reply to the appeal is not preside at the hearing if an Adminis- filed, the presiding officer shall refer trative Law Judge is unavailable. the appeal to the Judicial Officer, who may find that the General Counsel or [81 FR 40193, June 21, 2016] the Chief Postal Inspector or his or her designee is in default. Whenever the § 953.11 Proposed findings of fact and conclusions of law. General Counsel or the Chief Postal In- spector or his or her designee has been Proposed findings of fact and conclu- deemed to be in default, the Judicial sions of law shall be submitted orally Officer shall take whatever action on or in writing at the conclusion of the the appeal he deems appropriate. If an hearing, or otherwise, as ordered by oral evidentiary hearing is to be held, the presiding officer. the appellant may appear at the hear- § 953.12 Initial decision. ing in person or by counsel. If either party fails to appear at the hearing, Unless given orally at the conclusion the presiding officer shall receive the of the hearing, the Administrative Law evidence of the party appearing and Judge shall render an initial decision render a decision. as expeditiously as practicable after the conclusion of the hearing and the [59 FR 31538, June 20, 1994, as amended at 71 receipt of the proposed findings and FR 53972, Sept. 13, 2006] conclusions, if any. The initial decision shall become the decision of the Postal § 953.8 Location of hearing. Service if an appeal is not perfected. Unless otherwise ordered by the pre- When the Judicial Officer presides at siding officer, the hearing shall be held the hearing, his powers shall include at 2101 Wilson Boulevard, Suite 600, Ar- those of an Administrative Law Judge,

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but the Judicial Officer may render ei- timely application is made, the Judi- ther an initial or final decision. Excep- cial Officer shall consider the applications may be filed to an initial decision tion and any reasons advanced by the rendered by the Judicial Officer in ac- General Counsel or Chief Postal Inspec- cordance with § 953.13. tor or his or her designee for denying the application. The Judicial Officer § 953.13 Appeal from initial decision. shall thereafter order either that the Either party may file exceptions in a matter be returned to the applicant or brief on appeal to the Judicial Officer that it be disposed of in accordance within 5 days after receipt of the ini- with 39 U.S.C. 3001(b). tial decision unless additional time is [59 FR 31538, June 20, 1994, as amended at 71 granted. A reply brief may be filed FR 53972, Sept. 13, 2006] within 5 days after the receipt of the appeal brief by the opposing party. § 953.17 Ex parte communications. § 953.14 Final Agency decision. The provisions of 5 U.S.C. 551(14), 556(d), and 557(d) prohibiting ex parte The Judicial Officer shall render a communications are made applicable final Agency decision. The decision to proceedings under these rules of shall be served upon the parties and practice. the postal official having custody of any mail detained pursuant to the determination or ruling. PART 954—RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO THE § 953.15 Expedition. DENIAL, SUSPENSION, OR REV- For the purpose of further expedi- OCATION OF PERIODICALS MAIL tion, either party may move to have PRIVILEGES the hearing held at an earlier date than that specified in the notice. Either Sec. party may also move to have the ini- 954.1 Authority for rules. tial decision (if an Administrative Law 954.2 Scope of rules. Judge or the Judicial Officer is pre- 954.3 Informal dispositions. 954.4 Office business hours; electronic filing. siding) or the final Agency decision (if 954.5 Application. the Judicial Officer is presiding) ren- 954.6 Revocation or suspension. dered orally at the conclusion of the 954.7 Failure to appeal proposed action. hearing. The presiding officer may 954.8 Pleading. grant or deny any such motion. The 954.9 Default. parties may, with the concurrence of 954.10 Intervention or other participation. the Judicial Officer, agree to waive any 954.11 Hearings. 954.12 Change of place of hearing. of the procedures established in these 954.13 Appearances. rules. 954.14 Presiding officers. 954.15 Judicial Officer. § 953.16 Disposition. 954.16 Procedure. Mail matter found to be nonmailable 954.17 Transcript. shall be held at the post office where 954.18 Proposed findings and conclusions. 954.19 Initial decision. detained for a period of 15 days from 954.20 Appeals. the date of the Postal Service decision, 954.21 Motion for reconsideration. unless that period is extended by the 954.22 Continuances. Judicial Officer. During this holding 954.23 Computation of time. period, the appellant may apply for the 954.24 Official record. withdrawal of the matter. If any such 954.25 Public information. application is made, the General Coun- 954.26 Ex parte communications. sel or Chief Postal Inspector or his or AUTHORITY: 39 U.S.C. 204, 401, 3685; 5 U.S.C. her designee shall be given notice and 554. the opportunity to oppose the applica- SOURCE: 36 FR 11567, June 16, 1971, unless tion. Upon the expiration of the hold- otherwise noted. ing period with no application having been made, the Judicial Officer shall § 954.1 Authority for rules. order that the matter be disposed of in These rules of practice are issued by accordance with 39 U.S.C. 3001(b). If a the Judicial Officer of the U.S. Postal

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Service pursuant to authority dele- plication as incomplete or, on its face, gated by the Postmaster General. not fulfilling the requirements for entry. § 954.2 Scope of rules. [36 FR 11567, June 16, 1971, as amended at 38 The rules of practice shall apply to FR 17217, June 29, 1973; 42 FR 30504, June 15, all Postal Service proceedings con- 1977; 62 FR 66998, Dec. 23, 1997] cerning applications, denials, suspensions and revocations of Periodicals § 954.6 Revocation or suspension. mailing privileges arising under former When the authorized official deter- title 39 U.S.C. 4351, 4352, 4353, 4354, 4355, mines that a publication is no longer 4356, and 4369 as continued by sec. 3 of entitled to Periodicals mailing privi- the Postal Reorganization Act (Pub. L. leges, he or she shall issue a ruling of 91–375). suspension or revocation to the pub- [36 FR 11567, June 16, 1971, as amended at 62 lisher at the last known address of the FR 66998, Dec. 23, 1997] office of publication stating the reasons and attaching a copy of these § 954.3 Informal dispositions. rules. These rules do not preclude the infor- [36 FR 11567, June 16, 1971, as amended at 38 mal dispositions of Periodicals mailing FR 17217, June 29, 1973; 62 FR 66998, Dec. 23, privilege matters before or after insti- 1997] tution of proceedings. [36 FR 11567, June 16, 1971, as amended at 62 § 954.7 Failure to appeal proposed ac- FR 66998, Dec. 23, 1997] tion. A ruling of the authorized official § 954.4 Office business hours; elec- shall become final upon failure of the tronic filing. publisher to file a petition in accord- (a) The offices of the officials identi- ance with the requirements of § 954.8(b). fied in these rules are located at 2101 [36 FR 11567, June 16, 1971, as amended at 38 Wilson Boulevard, Suite 600, Arlington, FR 17217, June 29, 1973] VA 22201–3078. Normal Business hours are between 8:45 a.m. and 4:45 p.m. § 954.8 Pleading. (Eastern Time), Monday through Fri- (a) Filing and service. All documents day except holidays. required under this part must be filed (b) The Judicial Officer electronic fil- using the electronic filing system un- ing system Web site is accessible 24 less the presiding officer permits other- hours a day at https:// wise. Documents submitted using the uspsjoe.justware.com/justiceweb. electronic filing system are considered [81 FR 40193, June 21, 2016] filed as of the date/time (Eastern Time) reflected in the system. Documents § 954.5 Application. mailed to the Recorder are considered A publisher may file an application filed on the date mailed as evidenced for Periodicals mailing privileges. (See by a United States Postal Service post- § E213 of the Domestic Mail Manual.) mark. Filings by any other means are An authorized administrative official considered filed upon receipt by the of the Postal Service (hereinafter Recorder of a complete copy of the fil- called ‘‘the authorized official’’) rules ing during normal business hours. If upon all applications. If he or she de- both parties are participating in the nies the application he or she shall no- electronic filing system, separate serv- tify the publisher specifying the rea- ice upon the opposing party is not re- sons for his or her denial and attaching quired. Otherwise, documents shall be a copy of these rules. Before taking ac- served personally or by mail on the option on an application, the authorized posing party, noting on the document official may call upon the publisher for filed, or on the transmitting letter, additional information or evidence to that a copy has been so furnished. The support or clarify the application. Fail- Recorder shall maintain a docket and ure of the publisher to furnish such in- the files in all proceedings. formation or evidence may be cause for (b) Petition. A publisher may appeal the authorized official to deny the ap- from a ruling of the authorized official

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by filing a petition within 15 days of § 954.10 Intervention or other partici- the receipt of the ruling unless the pation. time is extended by the authorized offi- To intervene or otherwise participate cial. The petition shall state the rea- in a proceeding, any person may file a sons why the publisher (designated timely application in accordance with ‘‘Petitioner’’ in the proceeding) be- § 954.8(a). A timely application is one lieves the ruling of the authorized offi- which will not unduly delay the pro- cial is erroneous and shall provide the ceeding. The application shall state address at which documents may be whom the potential intervenor rep- served on the Petitioner. The petition resents, his or her interest, the extent shall also allege facts showing compli- to which he or she desires to partici- ance with each provision of law or reg- pate, and the evidence he or she seeks ulation on which the publisher’s claim to introduce. The presiding officer to Periodicals mail privileges is based. shall fix the time within which the par- The publisher shall attach to his or her ties shall answer the application. The petition a copy of the letter of the au- presiding officer shall grant or deny thorized official denying, suspending or the application on such terms and con- revoking Periodicals mail privileges. ditions as he or she deems appropriate. (c) Notice of hearing. Upon receipt of In so doing the presiding officer will the petition the Recorder shall set a consider, among other things, whether date for the hearing and issue a notice intervention or other participation is of hearing to the parties stating the consistent with the timely and proper time and place of the hearing, the date adjudication of the rights of the origi- for filing an answer, and the name of nal parties. the presiding officer. (d) Answer. The authorized official [31 FR 5198, Mar. 31, 1966. Redesignated at 31 FR 16270, Dec. 20, 1966; 62 FR 66998, Dec. 23, (designated the ‘‘Respondent’’ in the 1997] proceeding) shall answer the petition within 15 days after filing and admit or § 954.11 Hearings. deny each allegation of the petition. Hearings are held at 2101 Wilson Bou- (e) Amendment. An amendment of a levard, Suite 600, Arlington, VA 22201– pleading may be offered by any party 3078, or other locations designated by at any time prior to the close of the the presiding officer. hearing. If the presiding officer deems it appropriate to permit the amend- [63 FR 66050, Dec. 1, 1998] ment of a pleading, he or she may impose such conditions, by way of con- § 954.12 Change of place of hearing. tinuance of the hearing date or other- Not later than the date fixed for the wise, as he or she considers necessary filing of the answer, a party may file a to assure a fair hearing. request that a hearing be held to receive evidence in his or her behalf at a [36 FR 11567, June 16, 1971, as amended at 38 FR 17217, June 29, 1973; 62 FR 66998, Dec. 23, place other than that designated for 1997; 81 FR 40193, June 21, 2016] hearing in the notice. He or she shall support his request with a statement § 954.9 Default. setting forth: (a) The evidence to be offered in such If a publisher fails to appear at the place; hearing, the presiding officer may: (a) Dismiss the petition; (b) order the peti- (b) The names and addresses of the tioner to show cause within 30 days witnesses who will testify; from the date of the order why an order (c) The reasons why such evidence of dismissal should not be entered, and cannot be produced at Arlington, VA. thereafter enter such order as the pre- The presiding officer shall give consid- siding officer deems to be appropriate. eration to the convenience and neces- If the petition is dismissed by order of sity of the parties and the relevancy of an Administrative Law Judge, the dis- the evidence to be offered. missal may be appealed to the Judicial [36 FR 11567, June 16, 1971, as amended at 62 Officer within 15 days from the date of FR 66998, Dec. 23, 1997; 63 FR 66050, Dec. 1, the order. 1998]

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§ 954.13 Appearances. § 954.15 Judicial Officer. (a) The General Counsel of the Postal The Judicial Officer is authorized (a) Service or a member of his or her staff to act as presiding officer at hearings designated by him or her shall rep- and (b) to render a final Postal Service resent the authorized official. Decision for the Postmaster General. (b) A publisher or intervenor may ap- On appeal from an Initial Decision of pear and be heard in person or by at- an Administrative Law Judge, the Ju- torney. Attorneys may practice before dicial Officer will consider the entire the Postal Service in accordance with record including the initial decision applicable rules issued by the Judicial and the exceptions to that decision. Be- Officer. See part 951 of this chapter. fore any final agency decision has been (c) An attorney representing a pub- rendered, the Judicial Officer may lisher or intervenor shall file a written order the hearing reopened for the pre- authorization from the publisher or in- siding officer to take additional evi- tervenor before he or she may partici- dence. pate in the proceeding. The publisher or intervenor must promptly file a no- § 954.16 Procedure. tice of change of attorneys. (d) When a publisher or intervenor is (a) Evidence. The general rules of evi- represented by an authorized attorney dence governing civil proceedings in all subsequent pleadings shall be served matters not involving trial by jury in upon the attorney. the courts of the United States apply. The rules may be relaxed to the extent [36 FR 11567, June 16, 1971, as amended at 62 that the presiding officer may deem FR 66998, Dec. 23, 1997] proper to insure an adequate and fair § 954.14 Presiding officers. hearing. The presiding officer may exclude irrelevant or repetitious evi- (a) The Chief Administrative Law dence. Judge shall assign each case to an Ad- (b) The Postal Service is ministrative Law Judge qualified in ac- Subpoenas. cordance with law to preside over the not authorized to issue subpoenas. hearing. Such assignments shall be (c) Fees. The Postal Service does not made, so far as practical, in rotation. pay fees and expenses for witnesses of, (b) The presiding officer shall have or depositions requested by, the pub- authority to: lisher or intervenor. (1) Administer oaths and affirma- (d) Depositions. Depositions may be tions; taken as follows: (2) Examine witnesses; (1) Not later than 5 days after the fil- (3) Rule upon matters of evidence and ing of the authorized officials’s answer, procedure; any party may file application with the (4) Order any pleading amended upon presiding officer for the taking of testi- motion of a party at any time prior to mony by deposition. In support of such the close of the hearing; application the applicant shall submit (5) Maintain discipline and decorum under oath or affirmation a statement and exclude from the hearing any per- setting out the reasons why such testi- son acting in an indecorous manner; mony should be taken by deposition, (6) Require the filing of briefs on any the time and the place, and the name matter upon which he or she is re- and address of the witness whose depo- quired to rule; sition is desired, the subject matter of (7) Order prehearing conferences for the testimony of each witness, its rel- the settlement or simplification of evancy, and the name and address of issues by consent of the parties; the person before whom the deposition (8) Order the proceeding reopened at is to be taken. any time prior to his or her decision (2) If the application is granted, the for the receipt of additional evidence; order for the taking of the deposition (9) Render an initial decision. will specify the time and place thereof, [36 FR 11567, June 16, 1971, as amended at 38 the name of the witness, the person be- FR 17217, June 29, 1973; 38 FR 20263, July 30, fore whom the deposition is to be taken 1973; 62 FR 66998, Dec. 23, 1997] and any other necessary information.

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(3) Each witness testifying upon dep- is held; within a foreign country, depo- osition shall be duly sworn by the dep- sitions may be taken before a secretary osition officer and the adverse party of an embassy or legation, consul gen- shall have the right to cross-examine. eral, vice consul or consular agent of The questions and answers together the United States, or any other person with all objections, shall be reduced to designated in the order for the taking writing and, unless waived by stipula- of a deposition. tion of the parties, shall be read to and (7) Depositions may also be taken subscribed by the witness in the pres- and submitted on written interrog- ence of the deposition officer who shall atories in substantially the same man- certify it in the usual form. The deposi- ner as depositions taken by oral exam- tion officer shall file the testimony ination. When a deposition is taken taken by deposition as directed in the upon written interrogatories and cross- order. All objections made at the time interrogatories, none of the parties of examination shall be noted by the shall be present or represented, and no deposition officer and the evidence ob- person, other than the witness, a steno- jected to shall be taken subject to the graphic reporter, and the deposition of- objections. In lieu of participating in ficer shall be present at the examina- the oral examination, a party may tion of the witness, which fact shall be transmit written interrogatories to the certified by the officer, who shall pro- deposition officer, who shall propound pound the interrogatories and cross-in- them to the witness and record the an- terrogatories to the witness in their swers verbatim. Objections to rel- order and reduce the testimony to evancy or materiality of testimony, or writing in the witness’ own words. to errors and irregularities occurring at the oral examination in the manner [36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997] of taking the deposition, in the form of the questions or answers, in the oath or § 954.17 Transcript. affirmation, or in the conduct of the parties and errors of any kind which (a) A contract reporter of the Postal might be obviated, cured or removed if Service under the supervision of the promptly presented, are waived unless presiding officer shall report hearings. timely objection is made at the taking The reporter shall supply the parties of the deposition. with copies of the transcript at rates (4) At the hearing any part or all of not to exceed those fixed by contract the deposition may be offered in evi- between the Postal Service and the re- dence by any party who was present or porter. represented at the taking of the deposi- (b) Changes in the official transcript tion or who had notice thereof. If the may be made only when they involve deposition is not offered and received substantial errors. A party may file a in evidence, it shall not be considered motion for correction of the official as a part of the record in the pro- transcript within 10 days after his or ceeding. The admissibility of deposi- her receipt of the transcript or any tions or parts thereof shall be governed part thereof. Other parties shall, with- by the rules of evidence. in such time as may be specified by the (5) The party requesting the deposi- presiding officer, notify the presiding tion shall pay all fees required to be officer in writing if they object to the paid to witnesses and the deposition of- requested corrections. Failure of a ficer, and shall provide an original and party to interpose timely objection to one copy of the deposition for the offi- a proposed correction may be consid- cial record, and shall serve one copy ered by the presiding officer to be con- upon the opposing party. currence. The presiding officer shall (6) Within the United States or with- then specify the corrections to be made in a territory or insular possession sub- in the transcript. He or she may on his ject to the dominion of the United or her own initiative order corrections States, depositions may be taken be- in the transcript after notice to the fore an officer authorized to administer parties subject to their objection. oaths by the laws of the United States [36 FR 11567, June 16, 1971, as amended at 62 or of the place where the examination FR 66998, Dec. 23, 1997]

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§ 954.18 Proposed findings and conclu- and law presented on the record and sions. the reasons for those findings. (a) A party to a proceeding may sub- [36 FR 11567, June 16, 1971, as amended at 62 mit proposed findings of fact and con- FR 66998, Dec. 23, 1997] clusions of law to the presiding officer. The presiding officer shall determine § 954.20 Appeals. whether they shall be oral or written. (a) A party may appeal to the Judi- The presiding officer may require par- cial Officer from an initial decision by ties to a proceeding to submit proposed filing exceptions in a brief on appeal findings of fact and conclusions of law within 15 days from the receipt of a with supporting reasons. When the pro- written or oral initial decision. posed findings and conclusions are not (b) The time for the filing of the submitted orally they shall be filed reply brief is 10 days after receipt of within 15 days after delivery of the offi- the appeal brief. No additional briefs cial transcript to the Recorder. The shall be received unless requested by Recorder shall notify the parties of the the Judicial Officer. filing date which shall be the same for (c) Appeal briefs shall contain the both parties. If not submitted by that following matter in the order indi- date, the findings and conclusions will cated: not be considered or included in the (1) A subject index of the matters record. presented with page references; (b) Except when presented orally, (2) A table of cases alphabetically ar- proposed findings of fact and conclu- ranged; (3) A list of statutes and texts cited sions of law shall be set forth in num- with page references; bered paragraphs and shall state with (4) A concise abstract or statement of particularity all evidentiary facts in the case; the record with appropriate citations (5) Numbered exceptions to the find- to the transcript or exhibits relied ings and conclusions of the presiding upon to support the conclusions pro- officer and the reasons for the excep- posed. Each proposed conclusion shall tions. be separately stated. (d) Reply briefs shall contain para- [36 FR 11567, June 16, 1971, as amended at 62 graphs (c) (1), (2), and (3) of this section FR 66998, Dec. 23, 1997] and the reasons for opposing the exceptions. § 954.19 Initial decision. [36 FR 11567, June 16, 1971, as amended at 38 (a) Upon request of either party the FR 17217, June 29, 1973] presiding officer may render an oral initial decision at the close of the hear- § 954.21 Motion for reconsideration. ing when the nature of the case and the Within 10 days from the date thereof, public interest warrant. If a party de- or such longer period as may be fixed sires an oral initial decision he or she by the Judicial Officer, either party shall notify the presiding officer and may file a motion for reconsideration the opposing party at least 5 days prior of a final Agency decision. to the date set for hearing. Parties may then submit proposed findings and § 954.22 Continuances. conclusions orally or in writing at the For good cause shown, continuances conclusion of the hearing. or extensions may be granted by the (b) If an oral initial decision is not presiding officer. Similar action may rendered, the presiding officer shall be taken by the Judicial Officer when render a written initial decision with the proceeding is on appeal. all due speed after the parties have submitted all posthearing material. § 954.23 Computation of time. The initial decision shall become the A designated period of time under final agency decision unless it is ap- these rules excludes the day the period pealed. begins, and includes the last day of the (c) The initial decision shall include period unless the last day is a Satur- findings upon all material issues of fact day, Sunday, or holiday, in which

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event the period runs until the close of 955.21 Nature of hearings. business on the next working day. 955.22 Examination of witnesses. 955.23 Copies of papers, withdrawal of exhib- § 954.24 Official record. its. The pleadings, orders, exhibits, tran- 955.24 Posthearing briefs. script of testimony, briefs, decisions 955.25 Transcript of proceedings. and other documents filed in the pro- 955.26 Representation of the parties. 955.27 Withdrawal of attorney. ceeding constitute the official record of 955.28 Suspension. the proceeding. 955.29 Decisions. § 954.25 Public information. 955.30 Motion for reconsideration. 955.31 Dismissal without prejudice. The Librarian of the Postal Service 955.32 Dismissal for failure to prosecute. maintains for public inspection in the 955.33 Ex parte communications. Library copies of all initial and final 955.34 Sanctions. Agency decisions. The Recorder of the 955.35 Subpoenas. Postal Service maintains a complete 955.36 Effective dates and applicability. official record of every proceeding. A AUTHORITY: 39 U.S.C. 204, 401; 41 U.S.C. person may examine a record upon au- 7101–7109. thorization by the Judicial Officer. SOURCE: 74 FR 20592, May 5, 2009, unless [36 FR 11567, June 16, 1971, as amended at 62 otherwise noted. FR 66998, Dec. 23, 1997] § 955.1 Jurisdiction, procedure, service § 954.26 Ex parte communications. of documents. The provisions of 5 U.S.C. 551(14), (a) Jurisdiction for considering appeals. 556(d) and 557(d) prohibiting ex parte Pursuant to the Contract Disputes Act communications are made applicable of 1978, 41 U.S.C. 7101–7109, the Postal to proceedings under these rules of Service Board of Contract Appeals practice. (Board) has jurisdiction to consider and [42 FR 5358, Jan. 28, 1977] decide any appeal from a decision of a contracting officer of the United States PART 955—RULES OF PRACTICE BE- Postal Service or the Postal Regu- FORE THE POSTAL SERVICE latory Commission relative to a contract made by either. In addition the BOARD OF CONTRACT APPEALS Board has jurisdiction over other matters assigned to it by the Postmaster Sec. 955.1 Jurisdiction, procedure, service of doc- General, and over matters otherwise uments. authorized by applicable law. 955.2 Initiation of appeals. (b) Organization and location of the 955.3 Contents of notice of appeal. Board. (1) The Board is located at 2101 955.4 Forwarding of appeals. Wilson Boulevard, Suite 600, Arlington, 955.5 Preparation, contents, organization, Virginia 22201–3078. The Board’s tele- forwarding, and status of appeal file. 955.6 Motions. phone number is (703) 812–1900, and its 955.7 Pleadings. Web site is http://www.about.usps.com/ 955.8 Amendments of pleadings or record. who-we-are/judicial/welcome.htm. The 955.9 Hearing request. Web site for electronic filing is https:// 955.10 Prehearing briefs. uspsjoe.justware.com/justiceweb. 955.11 Prehearing or presubmission con- (2) The Board consists of the Judicial ference. 955.12 Submission without a hearing. Officer as Chairman, and the Judges of 955.13 Optional Small Claims (Expedited) the Board, as appointed by the Post- and Accelerated Procedures. master General in accordance with the 955.14 Settling the record. Contract Disputes Act of 1978, 41 U.S.C. 955.15 Discovery. 7101–7109. All members of the Board 955.16 Interrogatories to parties, admission shall meet the qualifications estab- of facts, and production and inspection of lished in the Contract Disputes Act. In documents. 955.17 Depositions. general, appeals are assigned to a panel 955.18 Hearings—where and when held. of at least three members of the Board. 955.19 Notice of hearings. The decision of a majority of the panel 955.20 Unexcused absence of a party. constitutes the decision of the Board.

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(c) Board procedures— (1) Rules. Ap- submitted the request before that time peals to the Board are handled in ac- expired. cordance with the rules of the Board. (4) Manner of filings. Pleadings and (2) Administration and interpretation of other communications shall be filed rules. These rules will be interpreted so using the electronic filing system un- as to secure a just and inexpensive de- less the Board permits otherwise. Doc- termination of appeals without unnec- uments submitted using that system essary delay. Emphasis is placed upon are considered filed with the Board as the sound administration of these rules of the date/time (Eastern Time) re- in specific cases, because it is impracti- flected in the system. Documents cable to articulate a rule to fit every mailed to the Board are considered possible circumstance which may be filed with the Board on the date mailed encountered. The Board may consider as evidenced by a United States post- the Federal Rules of Civil Procedure mark. Filings submitted by any other for guidance in construing those Board means are considered filed with the rules that are similar to Federal Rules and for matters not specifically cov- Board upon receipt by the Recorder of ered herein. a complete copy of the filing during (3) Time, computation, and extensions. the Board’s working hours (8:45 a.m.– (i) All time limitations specified for 4:45 p.m. Eastern Time). various procedural actions are com- (5) Service. If both parties to an ap- puted as maximums, and are not to be peal are participating via the elec- fully exhausted if the action described tronic filing system, separate service can be accomplished in a lesser period. upon the opposing party is not re- These time limitations are similarly quired. Otherwise, documents shall be eligible for extension in appropriate served personally or by mail with the circumstances. opposing party by an equally or more (ii) Unless otherwise specified by the expeditious means of transmittal, not- Board, orders and decisions shall be ing on the document filed with the considered received by the parties on Board, or on the transmitting letter, the date posted to the electronic filing that a copy has been furnished. The fil- system. Except as otherwise provided ing of a document by fax transmission by law, in computing any period of occurs upon receipt by the Board of the time prescribed by these rules or by entire legible submission by fax. Copies any order of the Board, the day of the of simultaneous briefs shall not be filed event from which the designated period electronically or otherwise exchanged of time begins to run shall not be in- by the parties but rather shall be filed cluded, but the last day of the period only with the Board by mail, fax, com- shall be included unless it is a Satur- mercial carrier, on in-person. The day, Sunday, or a federal holiday in Board will distribute simultaneous which event the period shall run to the briefs electronically, or otherwise as end of the next business day. Except as appropriate. The Board may determine otherwise provided in these rules or an not to extend a deadline for filing if the applicable order, prescribed periods of extension is necessary solely because time are measured in calendar days the Board’s fax machine is busy or oth- rather than business days. erwise unavailable when a filing is due. (iii) Requests for extensions of time Submissions filed by fax shall be fol- from either party shall be made in lowed promptly by filing by mail. writing stating good cause therefor, shall represent that the moving party [74 FR 20592, May 5, 2009, as amended at 76 has contacted the opposing party about FR 37660, June 28, 2011; 80 FR 31304, June 2, the request, or made reasonable and 2015; 81 FR 7208, Feb. 11, 2016; 81 FR 40193, good faith efforts to do so, and shall in- June 21, 2016] dicate whether the opposing party consents to the extension. If the request § 955.2 Initiation of appeals. for extension of time is filed after the An appeal must be initiated by the time for taking the required action has filing of a notice of appeal (or equiva- expired, the request should indicate the lent). See § 955.1(c)(4). The notice of ap- reasons for the party’s failure to have peal must be in writing and must be

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filed within the time specified by appli- eting notice, or such other period as cable law. the Board may order, the respondent’s counsel shall file with the Board an ap- [80 FR 31304, June 2, 2015] peal file consisting of all documents § 955.3 Contents of notice of appeal. pertinent to the appeal. The appeal file shall include: (a) A notice of appeal from a con- (1) The claim and contracting offi- tracting officer’s decision should indi- cer’s final decision from which the ap- cate that an appeal is thereby in- peal is taken; tended. It should identify the contract (2) The contract, including pertinent by number or other identifying ref- specifications, amendments, plans and erence, and identify the decision from drawings; which the appeal is taken, or it should (3) All correspondence between the attach a copy of the contracting offi- parties pertinent to the appeal; cer’s decision. If an appeal is taken (4) Transcripts of any testimony from the failure of a contracting offi- taken during the course of proceedings, cer to issue a decision, the notice of ap- and affidavits or statements of any peal should describe in detail the claim witnesses on the matter in dispute that the contracting officer has failed made prior to the filing of the notice of to decide and/or attach a copy of the appeal; and claim that the contracting officer has (5) Any additional information con- failed to decide, and explain that the sidered pertinent. contracting officer has failed to decide (b) Duties of the appellant. Within 30 the claim as required. days after receipt of a copy of the ap- (b) The notice of appeal should be peal file, the appellant shall supple- signed personally by the appellant (the ment the appeal file by transmitting to contractor taking the appeal), or by an the Board any documents not con- officer of the appellant corporation or tained therein considered to be perti- member of the appellant firm, or by nent to the appeal. the contractor’s duly authorized rep- (c) Organization of appeal file. Docu- resentative or attorney. The complaint ments in the appeal file or supplement, referred to in § 955.7 may be filed with as applicable shall be arranged in the notice of appeal, or the appellant chronological order where practicable, may designate the notice of appeal as a numbered sequentially, tabbed, and in- complaint, if it otherwise fulfills the dexed, to identify the contents. Page requirements of a complaint. numbering shall be consecutive and § 955.4 Forwarding of appeals. continuous from one document to the next, so that the complete file or sup- If a party seeking to file an appeal plement, as applicable, will consist of submits a notice of appeal to the con- one set of consecutively numbered tracting officer instead of filing it pages. using the electronic filing system, the (d) Lengthy documents. The Board contracting officer shall indicate may waive the requirement to ex- thereon the date of receipt and shall change or electronically file bulky, forward the notice of appeal, including lengthy, or out-of-size documents, or any envelope or other wrapping indi- tangible evidence in the appeal file on cating the date of mailing, within 10 a showing of impracticality or undue days to the Postal Service General burden. Documents or tangible evi- Counsel’s Office. A designee of the Gen- dence subject to a waiver will be avail- eral Counsel promptly shall enter the able for inspection at the Board. resulting case into the electronic filing (e) Status of documents in appeal file. system. Documents contained in the appeal file [80 FR 31304, June 2, 2015] are considered, without further action by the parties, as part of the record § 955.5 Preparation, contents, organi- upon which the Board will render its zation, forwarding, and status of decision, unless a party objects to the appeal file. consideration of a particular docu- (a) Duties of the respondent. Within 30 ment. Unless otherwise provided by days from receipt of the Board’s dock- Board order, any such objection shall

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be made at least 10 days prior to a document shall identify, by reference hearing or the date specified for set- to specific paragraph numbers in the tling the record in the event there is no moving party’s Statement of hearing on the appeal. If timely objec- Uncontested Facts, those facts as to tion to a document is made, the Board which the opposing party claims there will rule upon its admissibility into the is a genuine issue necessary to be liti- record as evidence in accordance with gated. An opposing party shall state §§ 955.14 and 955.21. the precise nature of its disagreement, and support its opposition with ref- [74 FR 20592, May 5, 2009, as amended at 80 FR 31304, June 2, 2015] erences to affidavits, declarations and/ or documents that demonstrate the ex- § 955.6 Motions. istence of a genuine dispute. (a) Any motion addressed to the ju- (3) The moving party and the non- risdiction of the Board shall be prompt- moving party shall each submit a ly filed. Oral argument on the motion memorandum of law supporting or op- may be afforded on application of ei- posing summary judgment. (4) If, despite reasonable efforts, the ther party, in the Board’s discretion, or opposing party cannot present facts es- on the Board’s initiative. The Board sential to justify its opposition, the may at any time and on its own initia- Board may defer ruling on the motion tive raise the issue of its jurisdiction to permit affidavits to be obtained or to proceed with a particular case. (b) A motion filed in lieu of an an- depositions to be taken or other dis- swer shall be filed no later than the covery to be conducted, or may issue date on which the answer is required to such other order as is just. The parties be filed or such later date as may be es- should not expect the Board to search tablished by Board order. Any other the record for evidence in support of ei- dispositive motion shall be filed as ther party’s position. soon as practicable after the grounds [74 FR 20592, May 5, 2009, as amended at 76 therefor are known. FR 37660, June 28, 2011] (c) Motions for summary judgment may be considered by the Board. How- § 955.7 Pleadings. ever, the Board may defer ruling on a (a) Appellant. Within 45 days after re- motion for summary judgment, in its ceipt of notice of docketing of the ap- discretion, until after a hearing or peal, the appellant shall file with the other presentation of evidence. Mo- Board a complaint setting forth simple, tions for summary judgment may be concise and direct statements of each filed only when a party believes that, of its claims, alleging the basis, with based upon uncontested material facts, appropriate reference to contract pro- it is entitled to relief as a matter of visions, for each claim, and the dollar law. The parties are to consider pro- amount claimed. This pleading shall ceeding by submission of the case with- fulfill the generally recognized require- out a hearing in accordance with ments of a complaint although no par- § 955.12, in lieu of a motion for sum- ticular form or formality is required. mary judgment. Upon the appellant’s request or on the (1) Motions for summary judgment Board’s own initiative, the appellant’s shall include a separate document ti- claim, notice of appeal or other docu- tled Statement of Uncontested Facts, ment may be deemed to constitute the which shall contain in separately num- complaint if in the opinion of the bered paragraphs all of the material Board the issues before the Board are facts upon which the moving party sufficiently defined. bases its motion and as to which it (b) Respondent. Within 30 days from contends there is no genuine issue. receipt of said complaint, or the afore- This statement shall include references said notice from the Board, the re- to affidavits, declarations and/or docu- spondent shall prepare and file with ments relied upon to support such the Board an answer thereto, setting statement. forth simple, concise, and direct state- (2) The opposing party shall file with ments of the respondent’s defenses to its opposition a separate document ti- each claim asserted by the appellant. tled Statement of Genuine Issues. This This pleading shall fulfill the generally

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recognized requirements of an answer, the hearing to be conducted and should and shall set forth any affirmative de- explain the reasons for its choices. fenses or counterclaims as appropriate. After considering the parties’ requests, Should the answer not be filed within the Board will determine whether a the time required, the Board may, in hearing will be held. its discretion, enter a general denial on behalf of the respondent, and the appel- [76 FR 37660, June 28, 2011] lant shall be so notified. (c) Affirmative claims by the respond- § 955.10 Prehearing briefs. ent. Where an appellant has appealed Based on an examination of the docu- an affirmative claim by the respondent mentation described in § 955.5, the asserted in a final decision by a Postal pleadings, and a determination of Service contracting officer, such as a whether the arguments and authorities termination for default or a Postal addressed to the issues are adequately Service claim that a contractor owes set forth therein, the Board may, in its the Postal Service money under a con- discretion, require the parties to sub- tract, the Board may order the remit prehearing briefs in any case in spondent to file the complaint as de- which a hearing has been ordered pur- scribed in § 955.7(a), and the appellant suant to § 955.9. In the absence of a to file the answer as described in Board requirement therefor, either § 955.7(b). party may, in its discretion and upon [74 FR 20592, May 5, 2009, as amended at 76 appropriate and sufficient notice to the FR 37660, June 28, 2011; 80 FR 31304, June 2, other party, furnish a prehearing brief 2015] to the Board. In any case where a prehearing brief is submitted, it shall be § 955.8 Amendments of pleadings or filed with the Board at least 15 days record. prior to the date set for hearing. (a) Upon its own initiative or upon application by a party, the Board may, [74 FR 20592, May 5, 2009, as amended at 76 FR 37660, June 28, 2011; 80 FR 31305, June 2, in its discretion, order a party to sub- 2015] mit a more definite statement of the complaint or answer, or to reply to an § 955.11 Prehearing or presubmission answer. conference. (b) When issues within the proper (a) Whether the case is to be sub- scope of an appeal, but not raised in mitted pursuant to § 955.12, or heard the pleadings, have been raised without pursuant to §§ 955.18 through 955.25, the objection or with permission of the Board may upon its own initiative or Board at a hearing or in record submis- upon the application of either party, sions, they may be treated in all re- convene a conference to consider: spects as if they had been raised in the pleadings. If evidence is objected to at (1) The simplification or clarification a hearing on the ground that it is not of the issues; within the issues raised by the plead- (2) The possibility of obtaining stipu- ings, in its discretion the Board may lations, admissions, agreements on admit the evidence and grant the ob- documents, understandings on matters jecting party a continuance or other already of record, or similar agree- relief if necessary to enable it to meet ments which will avoid unnecessary such evidence. proof; (3) The limitation of the number of § 955.9 Hearing request. expert witnesses, or avoidance of simi- As directed by Board order, each lar cumulative evidence, if the case is party shall inform the Board, in writ- to be heard; ing, whether it requests a hearing as (4) The possibility of agreement dis- prescribed in §§ 955.18 through 955.25, or posing of all or any of the issues in dis- in the alternative submission of its pute; and case on the record without a hearing as (5) Such other matters as may aid in prescribed in § 955.12. If a hearing is re- the disposition of the appeal. quested, the request should state where (b) The results of the conference shall and when the requesting party desires be reduced to writing by the Board and

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this writing shall thereafter constitute have been submitted under § 955.12 part of the record. without a hearing. (4) Promptly after receipt of the ap- § 955.12 Submission without a hearing. pellant’s election of the Expedited Pro- Submission of the case without hear- cedure, the Board shall establish a ing does not relieve the parties from schedule of proceedings that will allow the necessity of proving the facts sup- for the timely resolution of the appeal. porting their allegations or defenses. Pleadings, discovery, and other pre- Affidavits, depositions, admissions, an- hearing activities may be restricted or swers to interrogatories, and stipula- eliminated at the Board’s discretion as tions may be employed to supplement necessary to enable the Board to decide other documentary evidence in the the appeal within 120 days after the record which will be settled pursuant Board has received the appellant’s no- to § 955.14. The Board may permit such tice of election of the Expedited Proce- submission to be supplemented by oral dure. In so doing, the Board may re- argument (transcribed if requested), serve whatever time it considers nec- and by briefs in accordance with essary for preparation of the decision. § 955.24. (5) Written decisions by the Board in cases processed under the Expedited § 955.13 Optional Small Claims (Expe- Procedure will be short and contain dited) and Accelerated Procedures. only summary findings of fact and con- (a) The Small Claims (Expedited) Proce- clusions. Decisions will be rendered for dure. (1) The Expedited Procedure is the Board by a single Judge. If there available solely at the election of the has been a hearing, the Judge presiding appellant. Such election requires deci- at the hearing may, in his or her dis- sion of the appeal, whenever possible, cretion, at the conclusion of the hear- within 120 days after the Board re- ing and after entertaining such oral ar- ceives written notice of the appellant’s guments as he or she deems appro- election to utilize this procedure. priate, render on the record oral sum- (2) The appellant may elect this pro- mary findings of fact, conclusions of cedure when: law, and a decision of the appeal. (i) There is a monetary amount in Whenever such an oral decision is ren- dispute and that amount is $50,000 or dered, the Board will subsequently fur- less, or nish the parties a printed copy of such (ii) There is a monetary amount in oral decision for the record and pay- dispute and that amount is $150,000 or ment purposes and for the establish- less and the appellant is a small busi- ment of the commencement date of the ness concern (as that term is defined in period for filing a motion for reconsid- the Small Business Act and regulations eration under § 955.30. promulgated under the Act). (6) Decisions of the Board under the (3) In cases proceeding under the Ex- Expedited Procedure will not be pub- pedited Procedure, the respondent shall lished, will have no value as prece- file with the Board a copy of the con- dents, and in the absence of fraud, can- tract, the contracting officer’s final de- not be appealed. cision, and the appellant’s claim letter (b) The Accelerated Procedure. (1) The or letters, if any, within ten days from Accelerated Procedure is available the respondent’s first receipt from ei- solely at the election of the appellant ther the appellant or the Board of a and shall apply only to appeals where copy of the appellant’s notice of elec- there is a monetary amount in dispute tion of the Expedited Procedure. If ei- and the amount in dispute is $100,000 or ther party requests an oral hearing in less. Such election requires decision of accordance with § 955.9, the Board shall the appeal, whenever possible, within promptly schedule such a hearing for a 180 days after the Board receives writ- mutually convenient time consistent ten notice of the appellant’s election to with administrative due process and utilize this procedure. the 120-day limit for a decision, at a (2) Promptly after receipt of the ap- place determined under § 955.18. If a pellant’s election of the Accelerated hearing is not requested by either Procedure, the Board shall establish a party, the appeal shall be deemed to schedule of proceedings that will allow

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for the timely resolution of the appeal. (e) General rule. Except as herein The Board, in its discretion, may modified, the rules of this Part 955 oth- shorten time periods prescribed else- erwise apply in all aspects. where in these Rules as necessary to [74 FR 20592, May 5, 2009, as amended at 80 enable the Board to decide the appeal FR 31305, June 2, 2015] within 180 days after the Board has received the appellant’s notice of elec- § 955.14 Settling the record. tion of the Accelerated Procedure. (a) The record upon which the (3) Written decisions by the Board in Board’s decision will be rendered con- cases processed under the Accelerated sists of the appeal file described in Procedure will normally be short and § 955.5, and to the extent the following contain only summary findings of fact items have been filed, pleadings, pre- and conclusions. Decisions will be ren- hearing conference memoranda or ordered for the Board by a single Judge ders, prehearing briefs, depositions or with the concurrence of the Chairman interrogatories received in evidence, or Vice Chairman or other designated admissions, stipulations, transcripts of Judge, or by a majority among these conferences and hearings, hearing ex- two and an additional designated mem- hibits, posthearing briefs, and docu- ber in case of disagreement. In cases ments which the Board has specifically where the amount in dispute is $50,000 designated be made a part of the or less and in which there has been a record. (b) Except as the Board may other- hearing, the single Judge presiding at wise order in its discretion, no proof the hearing may, with the concurrence shall be received in evidence after com- of both parties, convert the appeal to pletion of an oral hearing or, in cases an Expedited Proceeding and at the submitted on the record, after notifica- conclusion of the hearing, after enter- tion by the Board that the case is taining such oral arguments as he or ready for decision. she deems appropriate, render on the (c) The weight to be attached to any record oral summary findings of fact, evidence of record will rest within the conclusions of law, and a decision of sound discretion of the Board. The the appeal. Whenever such an oral deci- Board may in any case require either sion is rendered, the Board will subse- party, with appropriate notice to the quently furnish the parties a printed other party, to submit additional evi- copy of such oral decision for record dence on any matter relevant to the and payment purposes and to establish appeal. the date of commencement of the pe- (d) The Board may consider the Fed- riod for filing a motion for reconsider- eral Rules of Evidence for guidance re- ation under § 955.30. garding admissibility of evidence and (c) Denial of election. At the request other evidentiary issues in construing of the respondent, or on its own initia- those Board rules that are similar to tive, the Board may determine whether Federal Rules and for matters not spe- the amount in dispute and/or the appel- cifically covered herein. lant’s status make the election of the [74 FR 20592, May 5, 2009, as amended at 80 Expedited Procedure or the Acceler- FR 31305, June 2, 2015] ated Procedure inappropriate. (d) Motions for Reconsideration in § 955.15 Discovery. Cases Arising Under § 955.13. Motions for (a) The parties are encouraged to en- reconsideration of cases decided under gage in voluntary discovery proce- either the Expedited Procedure or the dures. In connection with any deposi- Accelerated Procedure need not be de- tion or other discovery procedure, the cided within the time periods pre- Board may issue any order which jus- scribed by this § 955.13 for the initial tice requires to protect a party or person from annoyance, embarrassment, decision of the appeal, but all such mo- oppression, or undue burden or ex- tions shall be processed and decided pense, and those orders may include rapidly so as to fulfill the intent of this limitations on the scope, method, time section. and place for discovery, and provisions

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for protecting the secrecy of confiden- § 955.16 Interrogatories to parties, ad- tial information or documents. Except mission of facts, and production in connection with motions to compel and inspection of documents. or for a protective order, discovery re- (a) Interrogatories to parties. After an quests and responses should not be appeal has been filed with the Board, a filed with the Board. party may serve on the other party (b)(1) The Board may limit the fre- written interrogatories to be answered quency or extent of use of discovery separately in writing, signed under methods described in these rules. In oath and returned within 30 days. Upon doing so, generally the Board will con- timely objection, the Board will deter- sider whether: mine the extent to which the interrog- (i) The discovery sought is unreason- atories will be permitted. The scope ably cumulative or duplicative, or is and use of interrogatories will be con- obtainable from some other source that trolled by § 955.15. is more convenient, less burdensome, (b) Admission of facts. After an appeal or less expensive; has been filed with the Board, a party (ii) The party seeking discovery has may serve upon the other party a re- had ample opportunity by discovery in quest for the admission of specified the case to obtain the information facts. Within 30 days after service, the sought; or party served shall answer each re- (iii) The discovery is unduly burden- quested fact or file objections thereto. some and expensive, taking into ac- The factual propositions set out in the count the needs of the case, the request may be ordered by the Board as amount in controversy, limitations on deemed admitted upon the failure of a the parties’ resources, and the impor- party to respond timely and fully to tance of the issues at stake. the request for admissions. (2) The parties are required to make (c) Production and inspection of docu- a good faith effort to resolve objections ments. After an appeal has been filed to discovery requests informally. A with the Board, a party may serve on party receiving an objection to a dis- the other party written requests for covery request, or a party which be- the production, inspection, and copying lieves that another party’s response to of any documents, electronically a discovery request is incomplete or stored information, or things, to be an- entirely absent, may file a motion to swered within 30 days. Upon timely ob- compel a response, but such a motion jection, the Board will determine the extent to which the requests must be must include a representation that the satisfied, and if the parties cannot moving party has tried in good faith, themselves agree thereon, the Board prior to filing the motion, to resolve shall specify just terms and conditions the matter informally. The motion to of compliance. compel shall include a copy of each discovery request at issue and the re- § 955.17 Depositions. sponse, if any. (c) If a party fails to appear for a dep- (a) When depositions permitted. After an appeal has been docketed and com- osition, after being served with a prop- plaint filed, the parties may mutually er notice, or fails to serve answers or agree to, or the Board may, upon appli- objections to interrogatories, requests cation of either party and for good for admission of facts, or requests for cause shown, order the taking of testi- the production or inspection of docu- mony of any person by deposition upon ments, after proper service, the party oral examination or written interrog- seeking discovery may request that the atories before any officer authorized to Board impose appropriate rulings or administer oaths at the place of exam- sanctions. ination, for use as evidence or for pur- [74 FR 20592, May 5, 2009, as amended at 80 pose of discovery. The application for FR 31305, June 2, 2015] order shall specify whether the purpose of the deposition is discovery or for use as evidence.

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(b) Orders on depositions. The time, clude evidence to avoid unfair preju- place, and manner of taking deposi- dice, confusion of the issues, undue tions shall be as mutually agreed by delay, waste of time, or presentation of the parties or, failing such agreement, irrelevant, immaterial or cumulative governed by order of the Board. evidence. Although the Board will con- (c) Use as evidence. No testimony sider the Federal Rules of Evidence as taken by deposition shall be considered described in § 955.14(d), letters or copies as part of the evidence in the hearing thereof, affidavits, or other evidence of an appeal unless and until such tes- not ordinarily admissible under the timony is offered and received in evi- Federal Rules, may be admitted in the dence at or before such hearing. It will discretion of the Board. The weight to not ordinarily be received in evidence be attached to evidence presented in if the deponent is available to testify any particular form will be within the at the hearing, but the Board may admit testimony taken by deposition discretion of the Board, taking into in its discretion. A deposition may be consideration all the circumstances of used to contradict or impeach the tes- the particular case. Stipulations of fact timony of the witness given at the agreed upon by the parties may be ac- hearing. In cases submitted on the cepted as evidence at the hearing. The record, the Board may, in its discre- parties may stipulate the testimony tion, receive depositions as evidence in that would be given by a witness if the supplementation of that record. witness were present. The Board may (d) Expenses. Each party shall bear its in any case require evidence in addi- own expenses associated with the tak- tion to that offered by the parties. A ing of any deposition. party requiring the use of a foreign language interpreter allowing testi- § 955.18 Hearings—where and when mony to be taken in English for itself held. or witnesses it proffers is responsible If there is to be a hearing, it will be for making all necessary arrangements held at a time and place prescribed by and paying all costs and expenses asso- the Board after consultation with the ciated with the use of an interpreter. parties. At the discretion of the Board, hearings may be held in the Board’s § 955.22 Examination of witnesses. hearing room in Arlington, Virginia or may be held at another location with Witnesses before the Board will be due consideration to the just, informal, examined orally under oath or affirma- expeditious and inexpensive resolution tion, unless the facts are stipulated, or of each case. the Board shall otherwise order. If the testimony of a witness is not given [74 FR 20592, May 5, 2009, as amended at 76 under oath or affirmation, the Board FR 37660, June 28, 2011] may warn the witness that his or her § 955.19 Notice of hearings. statements may be subject to the pro- The Board shall issue an order rea- visions of 18 U.S.C. 287 and 1001, and sonably in advance of the hearing iden- any other provisions of law imposing tifying the time and place thereof. penalties for knowingly making false representations in connection with § 955.20 Unexcused absence of a party. claims against the United States or in The unexcused absence of a party at any matter within the jurisdiction of the time and place set for hearing will any department or agency thereof. not be occasion for delay. In the event Upon the request of either party, or if of such absence, the hearing will pro- the Board deems it advisable, the ceed and the case will be regarded as Board may exclude witnesses from the submitted by the absent party as pro- hearing room. The Board will not ex- vided in § 955.12. clude a party who is an individual, the properly designated representative of a § 955.21 Nature of hearings. party which is an entity, a person Hearings shall be as informal as may whose presence is essential to the pres- be reasonable and appropriate under entation of a party’s case, or a person the circumstances. The Board may ex- required by statute to be present.

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§ 955.23 Copies of papers, withdrawal (b) The term respondent means the of exhibits. U.S. Postal Service. Postal Service (a) When books, records, papers, or counsel, who shall be an attorney at documents have been received in evi- law licensed to practice in a state, dence, a true copy thereof or of such commonwealth, or territory of the part thereof as may be material or rel- United States, or in the District of Co- evant may be substituted therefor, dur- lumbia, designated by the General ing the hearing or at the conclusion Counsel, will represent the interest of thereof. the Postal Service before the Board. (b) After a decision has become final, Postal Service counsel shall register in upon request and after notice to the the electronic filing system, and file a other party, the Board in its discretion written notice of appearance with the may permit the withdrawal of original Board. The notice of appearance must exhibits, or any part thereof, by the include an email address, mailing ad- party entitled thereto. The substi- dress, telephone number, fax number, tution of true copies of exhibits or any and a jurisdiction in which the attor- part thereof may be required by the ney is licensed to practice law. Board in its discretion as a condition of (c) References to contractor, appellant, granting permission for such withdrawal. contracting officer, respondent and parties shall include respective counsel for § 955.24 Posthearing briefs. the parties, as soon as appropriate no- Posthearing briefs may be submitted tices of appearance have been filed upon such terms as may be ordered by with the Board. A self-represented the Board at the conclusion of the party or an attorney representing ei- hearing. Ordinarily, they will be simul- ther party shall inform the Board taneous briefs, submitted to the Board promptly of any change in his or her on a date established by the Board, fol- email address, mailing address, tele- lowing receipt of transcripts. phone number, or fax number, and must enter the appropriate changes § 955.25 Transcript of proceedings. promptly in the electronic filing sys- Testimony and argument at hearings tem. shall be reported verbatim, unless the [80 FR 31305, June 2, 2015] Board otherwise orders. Transcripts of the proceedings will be provided to the § 955.27 Withdrawal of attorney. parties by the Board. Any attorney for either party who § 955.26 Representation of the parties. has filed a notice of appearance and (a) The term appellant means a party who wishes to withdraw from a case that has filed an appeal for resolution must file a motion or notice which in- by the Board. An individual appellant cludes the name, email address, mail- may appear before the Board in his or ing address, telephone number, and fax her own behalf, a corporation may ap- number of the person who will assume pear before the Board by an officer responsibility for representation of the thereof, a partnership or joint venture party in question. may appear before the Board by a [80 FR 31305, June 2, 2015] member thereof. Any appellant may appear before the Board by an attorney § 955.28 Suspension. at law duly licensed in any state, commonwealth, territory of the United (a) Whenever at any time it appears States, or in the District of Columbia. that the parties are in agreement as to An attorney representing an appellant disposition of the controversy, the shall register in the electronic filing Board may suspend further processing system, and file a notice of appearance. of the appeal: Provided, however, That if The notice of appearance must include the Board is advised thereafter by ei- an email address, mailing address, tele- ther party that the controversy has not phone number, fax number, and a juris- been disposed of by agreement, the case diction in which the attorney is li- shall be restored to the Board’s active censed to practice law. docket.

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(b) The Board may in its discretion Board, comply with orders of the suspend proceedings to permit a con- Board, or otherwise indicates an inten- tracting officer to issue a decision tion not to continue the prosecution or when an appeal has been taken from defense of an appeal, the Board may the contracting officer’s failure to issue an order requiring the offending render a timely decision, or for other party to show cause why the appeal good cause. should not be either dismissed or granted, as appropriate. If the offend- § 955.29 Decisions. ing party shall fail to show such cause, Decisions of the Board will be made the Board may take such action as it in writing and sent to both parties deems reasonable and proper under the through the electronic filing system, or circumstances. otherwise as appropriate. The rules of the Board and all final orders and deci- § 955.33 Ex parte communications. sions shall be open for public inspection at the offices of the Board, and No member of the Board or of the may be made available on its official Board’s staff shall entertain, nor shall Web site and to commercial publishers. any person directly or indirectly in- Decisions of the Board will be made volved in an appeal submit to the solely upon the record, as described in Board or the Board’s staff, off the § 955.14. record, any evidence, explanation, analysis, or advice, whether written or [74 FR 20592, May 5, 2009, as amended at 80 oral, regarding any matter at issue in FR 31305, June 2, 2015] an appeal. This provision does not § 955.30 Motion for reconsideration. apply to consultation among Board members nor to communica- A motion for reconsideration, if filed ex parte by either party, shall set forth specifi- tions concerning the Board’s adminis- cally the ground or grounds relied upon trative functions or procedures. to sustain the motion, and shall be filed within 30 days from the date of § 955.34 Sanctions. the receipt of a copy of the decision of (a) All parties and their attorneys the Board by the party filing the mo- must obey directions and orders pre- tion. scribed by the Board and adhere to standards of conduct applicable to such § 955.31 Dismissal without prejudice. parties and attorneys. As to an attor- In certain cases, appeals docketed be- ney, the standards include the rules of fore the Board are required to be placed professional conduct and ethics of the in a suspense status and the Board is jurisdictions in which that attorney is unable to proceed with disposition licensed to practice, to the extent that thereof for reasons not within the con- those rules are relevant to conduct af- trol of the Board. In any such case fecting the integrity of the Board, its where the suspension has continued, or process, or its proceedings. it appears that it will continue, for an (b) If any party or its attorney fails inordinate length of time, the Board to comply with any direction or order may, in its discretion, dismiss such ap- issued by the Board, or engages in mis- peals from its docket without prejudice conduct affecting the Board, its proc- to their restoration when the cause of ess, or its proceedings, the Board may suspension has been removed. Unless issue such orders as are just, including either party or the Board acts within the imposition of appropriate sanc- three years to reinstate any appeal dis- tions. Sanctions may include: missed without prejudice, the dismissal shall be deemed with prejudice. (1) Taking the facts pertaining to the matter in dispute to be established for § 955.32 Dismissal for failure to pros- the purpose of the case; ecute. (2) Forbidding challenge of the accu- Whenever a record discloses the fail- racy of any evidence; ure of either party to file documents (3) Refusing to allow the disobedient required by these rules, respond to no- party to support or oppose designated tices or correspondence from the claims or defenses;

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(4) Prohibiting the disobedient party (i) 15 days before a scheduled deposi- from introducing in evidence des- tion where the attendance of a witness ignated documents or testimony; at a deposition is sought, and/or where (5) Striking pleadings or parts there- the production by a witness of books, of, or staying further proceedings until papers, documents, electronically the order is obeyed; stored information, and other tangible (6) Dismissing or granting the case or and intangible things is sought; and any part thereof; (ii) 30 days before a scheduled hearing (7) Imposing such other sanctions as where the attendance of a witness at a the Board deems appropriate. hearing is sought; except that (c) In addition, the Board may sanc- (iii) In its discretion the Board may tion individual attorneys for a viola- honor requests for subpoenas not made tion of any Board order or direction or within these time limitations. standard of conduct applicable to such (2) A request for a subpoena shall individual where the violation seri- state the reasonable scope and general ously affects the integrity of the relevance to the case of the testimony Board, its process, or its proceedings. and of any books, papers, documents, Sanctions may be public or private, electronically stored information, and and may include admonishment, dis- other tangible and intangible things qualification from a particular matter, sought. disqualification from practice before the Board in accordance with 39 CFR (d)(1) Requests to quash or modify. Part 951, referral to an appropriate li- Upon written request by the person censing authority, or such other action subpoenaed or by a party, made within as circumstances may warrant. 10 days after service but in any event not later than the time specified in the § 955.35 Subpoenas. subpoena for compliance, the Board may: (a) General. Upon written request of either party filed with the Recorder, or (i) Quash or modify the subpoena if it on the Board’s own initiative, the is unreasonable and oppressive or for Board may issue a subpoena requiring: other good cause shown; or (1) Testimony at a deposition. The de- (ii) Require the person in whose be- posing of a witness in the city or coun- half the subpoena was issued to ad- ty where the witness resides or is em- vance the reasonable cost of compli- ployed or transacts business in person, ance. or at another convenient location as (2) Where circumstances require, the determined by the Board; Board may act upon such a request at (2) Testimony at a hearing. The attend- any time after a copy has been served ance of a witness for the purpose of upon the opposing party. taking testimony at a hearing; or (e) Form; issuance. (1) Every subpoena (3) Production of books and papers. The shall state the name of the Board and production by a witness of books, pa- the title of the appeal and shall com- pers, documents, electronically stored mand each person to whom it is di- information, and other tangible and in- rected to attend and give testimony, tangible things designated in the sub- and where appropriate, to produce poena. specified books, papers, documents, (b) Voluntary cooperation. Each party electronically stored information, and is expected: other tangible and intangible things at (1) To cooperate and make available a time and place therein specified. In witnesses and evidence under its con- issuing a subpoena to a requesting trol as requested by the other party, party, the Judge shall sign the sub- without issuance of a subpoena; and poena and may enter the name of the (2) To secure voluntary attendance of witness and otherwise leave it blank. desired third-party witnesses, books, The party to whom the subpoena is papers, documents, or tangible things issued shall complete the subpoena be- whenever possible. fore service. (c) Requests for subpoenas. (1) A re- (2) Where the witness is located in a quest for a subpoena shall normally be foreign country, a letter rogatory or filed at least: subpoena may be issued and served

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under the circumstances and in the 957.5 Case initiation. manner provided in 28 U.S.C. 1781–1784. 957.6 Filing documents for the record. (f) Service. (1) The party requesting 957.7 Failure to appear at the hearing. 957.8 Hearings. issuance of a subpoena shall arrange 957.9 Appearances. for service. 957.10 Conduct of the hearing. (2) A subpoena may be served by a 957.11 Witness fees. United States marshal or deputy mar- 957.12 Transcript. shal, or by any other person who is not 957.13 Proposed findings of fact. a party and not less than 18 years of 957.14 Findings of fact. age. Service of a subpoena upon a per- 957.15 Computation of time. son named therein shall be made by 957.16 Official record. 957.17 Public information. personally delivering a copy to that 957.18 Ex parte communications. person and tendering the fees for one day’s attendance and the mileage pro- AUTHORITY: 39 U.S.C. 204, 401. vided by 28 U.S.C. 1821 or other applica- SOURCE: 80 FR 55767, Sept. 17, 2015, unless ble law. otherwise noted. (3) The party at whose instance a subpoena is issued shall be responsible § 957.1 Authority for rules. for the payment of fees and mileage of The rules in this part are issued by the witness and of the officer who the Judicial Officer of the Postal Serv- serves the subpoena. The failure to ice pursuant to authority delegated by make payment of such charges on de- the Postmaster General (39 U.S.C. 204, mand may be deemed by the Board as 401). a sufficient ground for striking the testimony of the witness and the evidence § 957.2 Scope of rules. the witness has produced. The rules in this part apply to pro- (g) Contumacy or refusal to obey a sub- ceedings initiated pursuant to para- poena. In case of contumacy or refusal graphs (g)(2) or (h)(2) of § 601.113 of this to obey a subpoena by a person who re- subchapter. sides, is found, or transacts business within the jurisdiction of a U.S. Dis- § 957.3 Definitions. trict Court, the Board will apply to the (a) Vice President means the Vice Court through the Attorney General of President, Supply Management, or the the United States for an order requir- Vice President’s representative for the ing the person to appear before the purpose of carrying out the provisions Board or a member thereof to give tes- of § 601.113 of this subchapter. timony or produce evidence or both. (b) General Counsel includes the Post- Any failure of any such person to obey al Service’s General Counsel and any the order of the Court may be punished designated representative within the by the Court as a contempt thereof. Office of the General Counsel. § 955.36 Effective dates and applica- (c) Judicial Officer includes the Postal bility. Service’s Judicial Officer, Associate Judicial Officer, and Acting Judicial These revised rules govern pro- Officer. ceedings under this part docketed on or (d) Debarment has the meaning given after July 2, 2015. by paragraph (b)(2) of § 601.113 of this [80 FR 31305, June 2, 2015] subchapter. (e) Respondent means any individual, PART 956 [RESERVED] firm or other entity which has been served a written notice of proposed de- PART 957—RULES OF PRACTICE IN barment pursuant to § 601.113(h), or PROCEEDINGS RELATIVE TO DE- which previously has been debarred, as provided in § 601.113(g)(2) of this sub- BARMENT FROM CONTRACTING chapter. (f) Hearing Officer means the judge as- Sec. 957.1 Authority for rules. signed to the case by the Judicial Offi- 957.2 Scope of rules. cer. The Hearing Officer may be the Ju- 957.3 Definitions. dicial Officer, Associate Judicial Offi- 957.4 Authority of the Hearing Officer. cer, Administrative Law Judge or an

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Administrative Judge who is a member shown, in the Hearing Officer’s sole dis- of the Postal Service Board of Contract cretion. Appeals. (i) Issuing findings of fact. The Hear- (g) Recorder means the Recorder of ing Officer will issue findings of fact to the Judicial Officer Department of the the Vice President within 30 days from United States Postal Service, 2101 Wil- the close of the record, to the extent son Boulevard, Suite 600, Arlington, VA practicable. 22201–3078. The Recorder’s telephone number is (703) 812–1900, fax number is § 957.5 Case initiation. (703) 812–1901, and the Judicial Officer’s (a) Upon receipt of a request or refer- Web site is http://www.about.usps.com/ ral from the Vice President, the Re- who-we-are/judicial/welcome.htm. corder will docket a case under this Part. Following docketing, the Judicial § 957.4 Authority of the Hearing Offi- Officer will assign a Hearing Officer. cer. The Hearing Officer will establish the The Hearing Officer’s authority in- schedule for the proceeding, perform cludes, but is not limited to, the fol- all judicial duties under this Part and lowing: render Findings of Fact. Whenever (a) Ruling on all motions or requests practicable, a hearing should be con- by the parties. ducted within 30 days of the date of (b) Issuing notices, orders, or memo- docketing. randa to the parties concerning the (b) The request or referral from the hearing proceedings. Vice President shall include the notice of proposed debarment and the infor- (c) Conducting conferences with the mation or argument submitted by the parties. The Hearing Officer will pre- Respondent pursuant to paragraphs (g) pare a Memorandum of Conference, or (h) of § 601.113 of this subchapter. which will be transmitted to both parties and which serves as the official § 957.6 Filing documents for the record of that conference. record. (d) Determining whether an oral The parties shall file documents, per- hearing will be conducted, and setting mitted by the rules in this part or re- the place, date, and time for such a quired by the Hearing Officer, in the hearing. Judicial Officer Department’s elec- (e) Administering oaths or affirma- tronic filing system. The Web site for tions to witnesses. electronic filing is https:// (f) Conducting the proceedings and uspsjoe.justware.com/justiceweb. Docu- the hearing in a manner to maintain ments submitted using that system are discipline and decorum while ensuring considered filed as of the date and time that relevant, reliable and probative (Eastern Time) reflected in the system. evidence is elicited, but irrelevant, im- Orders issued by the Hearing Officer material or repetitious evidence is ex- shall be considered received by the par- cluded. The Hearing Officer in his or ties on the date posted to the elec- her discretion may examine witnesses tronic filing system. to ensure that a satisfactory record is developed. § 957.7 Failure to appear at the hear- (g) Establishing the record. The ing. weight to be attached to evidence will If a party fails to appear at the hear- rest within the discretion of the Hear- ing, the Hearing Officer may proceed ing Officer. Except as the Hearing Offi- with the hearing, receive evidence and cer may otherwise order, no proof shall issue findings of fact without require- be received in evidence after comple- ment of further notice to the absent tion of a hearing. The Hearing Officer party. may require either party, with appropriate notice to the other party, to § 957.8 Hearings. submit additional evidence on any rel- Hearings ordinarily will be conducted evant matter. in the Judicial Officer Department (h) Granting reasonable time exten- courtroom at 2101 Wilson Boulevard, sions or other relief for good cause Suite 600, Arlington, VA 22201–3078.

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However, the Hearing Officer, in his or witness if the witness were present. her discretion, may order the hearing The Hearing Officer may in any case to be conducted at another location, or require evidence in addition to that of- by another means such as by video. fered by the parties. A party requiring the use of a foreign language inter- § 957.9 Appearances. preter allowing testimony to be taken (a) An individual Respondent may ap- in English for itself or witnesses it pear in his or her own behalf, a cor- proffers is responsible for making all poration may appear by an officer necessary arrangements and paying all thereof, a partnership or joint venture costs and expenses associated with the may appear by a member thereof, or use of an interpreter. any of these may appear by a licensed attorney. § 957.11 Witness fees. (b) After a request for a hearing has been filed pursuant to the rules in this Each party is responsible for the fees part, the General Counsel shall des- and costs for its own witnesses. ignate a licensed attorney as counsel assigned to handle the case. § 957.12 Transcript. (c) All counsel, or a self-represented Testimony and argument at hearings Respondent, shall register in the elec- shall be reported verbatim, unless the tronic filing system, and request to be Hearing Officer otherwise orders. Tran- added to the case. Counsel also prompt- scripts of the proceedings will be made ly shall file notices of appearance. available or provided to the parties. (d) An attorney for any party who has filed a notice of appearance and § 957.13 Proposed findings of fact. who wishes to withdraw must file a motion requesting withdrawal, explain- (a) The Hearing Officer may direct ing the reasons supporting the motion, the parties to submit proposed findings and identifying the name, email ad- of fact and supporting explanations dress, mailing address, telephone num- within 15 days after the delivery of the ber, and fax number of the person who official transcript to the Recorder who will assume responsibility for represen- shall notify both parties of the date of tation of the party in question. its receipt. The filing date for proposed findings shall be the same for both par- § 957.10 Conduct of the hearing. ties. The Hearing Officer may approve or (b) Proposed findings of fact shall be disapprove witnesses in his or her dis- set forth in numbered paragraphs and cretion. All testimony will be taken shall state with particularity all evi- under oath or affirmation, and subject dentiary facts in the record with appro- to cross-examination. The Hearing Of- priate citations to the transcript or ex- ficer may exclude evidence to avoid un- hibits supporting the proposed find- fair prejudice, confusion of the issues, ings. undue delay, waste of time, or presentation of irrelevant, immaterial, or cu- § 957.14 Findings of fact. mulative evidence. Although the Hear- The Hearing Officer shall issue writing Officer will consider the Federal ten findings of fact, and transmit them Rules of Evidence for guidance regard- to the Vice President. Copies will be ing admissibility of evidence and other sent to the parties. evidentiary issues, he or she is not bound by those rules. The weight to be § 957.15 Computation of time. attached to evidence presented in any particular form will be within the dis- A designated period of time under the cretion of the Hearing Officer, taking rules in this part excludes the day the into consideration all the cir- period begins, and includes the last day cumstances of the particular case. of the period unless the last day is a Stipulations of fact agreed upon by the Saturday, Sunday, or legal holiday, in parties may be accepted as evidence at which event the period runs until the the hearing. The parties may stipulate close of business on the next business the testimony that would be given by a day.

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§ 957.16 Official record. SOURCE: 74 FR 18631, Apr. 24, 2009, unless otherwise noted. The transcript of testimony together with all pleadings, orders, exhibits, § 958.1 Purpose. briefs, and other documents filed in the proceeding shall constitute the official This part establishes the procedures record of the proceeding. governing the hearing and appeal rights of any person alleged to be liable § 957.17 Public information. for civil penalties, clean-up costs and/ The Postal Service shall maintain for or damages for mailing hazardous ma- public inspection copies of all findings terials and/or related violations under of fact issued under this Part, and 39 U.S.C. 3018. make them available through the Post- al Service Web site. The Recorder § 958.2 Definitions. maintains the complete official record As used in this part: of every proceeding. (a) Complaint refers to the determination by the Determining Official that § 957.18 Ex parte communications. an individual has violated the prohibi- The provisions of 5 U.S.C. 551(14), tion against mailing hazardous mate- 556(d), and 557(d) prohibiting ex parte rials and/or related violations under 39 communications are made applicable U.S.C. 3018. to proceedings under these rules of (b) Initial Decision refers to the writ- practice. ten decision which the Presiding Offi- cer renders. PART 958—RULES OF PRACTICE IN (c) Determining Official refers to the PROCEEDINGS RELATIVE TO Chief Postal Inspector or designee. CIVIL PENALTIES, CLEAN-UP (d) Judicial Officer refers to the Judi- COSTS AND DAMAGES FOR VIO- cial Officer or Acting Judicial Officer LATION OF HAZARDOUS MATE- of the United States Postal Service or RIAL REGULATIONS designee within the Judicial Officer Department. Sec. (e) Party refers to the Postal Service 958.1 Purpose. or the respondent. 958.2 Definitions. 958.3 Petition for hearing. (f) Person refers to any individual, 958.4 Referral of complaint. partnership, corporation, association, 958.5 Scope of hearing; evidentiary stand- or private organization. ard. (g) Presiding Officer refers to an Ad- 958.6 Notice of docketing and hearing. ministrative Law Judge designated by 958.7 Hearing location. 958.8 Rights of parties. the Chief Administrative Law Judge to 958.9 Responsibilities and authority of pre- conduct a hearing, or to the Judicial siding officer. Officer, if an Administrative Law 958.10 Prehearing conferences. Judge is not available. 958.11 Respondent access to information. (h) Recorder refers to the Recorder of 958.12 Depositions; interrogatories; admission of facts; production and inspection the Judicial Office of the United States of documents. Postal Service, 2101 Wilson Boulevard, 958.13 Sanctions. Suite 600, Arlington, Virginia 22201– 958.14 Ex parte communications. 3078. 958.15 Post-hearing briefs. (i) Representative refers to an attor- 958.16 Transcript of proceedings. 958.17 Initial decision. ney or other advocate. 958.18 Appeal of initial decision to Judicial (j) Respondent refers to any person Officer. determined by the Determining Official 958.19 Form and filing of documents. to be liable for civil penalties, clean-up 958.20 Service. costs and/or damages for mailing haz- 958.21 Computation of time. 958.22 Continuances and extensions. ardous materials and/or related viola- 958.23 Settlement. tions under 39 U.S.C. 3018.

AUTHORITY: 39 U.S.C. 204, 401, 3001, 3018; 5 [74 FR 18631, Apr. 24, 2009, as amended at 81 U.S.C. 554. FR 40193, June 21, 2016]

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§ 958.3 Petition for hearing. § 958.5 Scope of hearing; evidentiary standard. Within 30 days of being served the Postal Service’s Complaint alleging li- (a) A hearing under this part shall be ability under 39 U.S.C. 3018, the re- conducted by the Presiding Officer on spondent may request a hearing by fil- the record: ing a written Hearing Petition with the (1) To determine whether the re- Recorder. The respondent’s Petition spondent is liable under 39 U.S.C. 3018, must include the following: and (a) The words ‘‘Petition for Hearing (2) If so, to determine the amount of Related to Prohibitions Regarding the any civil penalties, clean-up costs and/ Mailing of Hazardous Material’’ or or damages to be imposed. other words reasonably identifying it (b) The Postal Service must prove its as such; case against a respondent by a prepon- (b) The name of the respondent as derance of the evidence. well as his or her work and home ad- (c) The parties may offer for inser- dresses, and work and home telephone tion onto the record such relevant evi- numbers; and other address and tele- dence as they deem appropriate and as phone number where the respondent would be admissible under the generally accepted rules of evidence ap- may be contacted about the hearing plied in the courts of the United States proceedings; in nonjury trials, subject, however, to (c) The date on which the respondent the sound discretion of the Presiding received the Complaint issued by the Officer in supervising the extent and Determining Official; manner of presentation of such evi- (d) A statement indicating whether dence. In general, admissibility will the respondent requests an oral hear- hinge on relevancy and materiality. ing or a decision solely on the written However, relevant evidence may be ex- record; cluded if its probative value is substan- (e) If the respondent requests an oral tially outweighed by the danger of un- hearing, a statement proposing a city fair prejudice, or by considerations of for the hearing site, with justification undue delay, waste of time, or needless for holding the hearing in that city, as presentation of cumulative evidence. well as recommended dates for the hearing; and § 958.6 Notice of docketing and hear- (f) A statement admitting or denying ing. each of the allegations of liability (a) Within a reasonable time after re- made in the Complaint, and stating ceiving the respondent’s Hearing Peti- any defense on which the respondent tion and the Complaint, the Presiding intends to rely. Officer shall serve upon the respondent and the Determining Official, a Notice § 958.4 Referral of complaint. of Docketing and Hearing. (a) If the respondent fails to request (b) The Notice of Docketing and a hearing within the specified period, Hearing required by paragraph (a) of the Determining Official shall transmit this section may include: the Complaint to the Judicial Officer (1) The tentative site, date, and time for referral to a Presiding Officer, who of the oral hearing, if one is requested; shall issue an Initial Decision based (2) The legal authority and jurisdic- upon the information contained in the tion under which the hearing is to be Complaint. held; (b) If the respondent files a Hearing (3) The nature of the hearing; Petition, the Determining Official, (4) The matters of fact and law to be upon receiving a copy of the Petition, decided; shall promptly transmit to the Pre- (5) A description of the procedures siding Officer a copy of the Postal governing the conduct of the hearing; Service’s Complaint. and (6) Such other information as the Presiding Officer deems appropriate.

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§ 958.7 Hearing location. that may aid in the expeditious resolution of the proceeding; An oral hearing under this part shall (3) Continuing or recessing the hear- be held: ing in whole or in part for a reasonable (a) In the judicial district of the period of time; United States in which the respondent (4) Administering oaths and affirma- resides or transacts business; tions to witnesses; (b) In the judicial district of the (5) Ruling on all offers, motions, re- United States in which the incident or quests by the parties, and other proce- incidents occurred upon which the de- dural matters; termination of liability under 39 U.S.C. (6) Issuing any notices, orders, or 3018 was made by the Determining Offi- memoranda to the parties concerning cial; or the proceedings; (c) In such other place as may be de- (7) Regulating the scope and timing termined by the Presiding Officer. of discovery; (8) Regulating the course of the hear- § 958.8 Rights of parties. ing and the conduct of the parties and Subject to the sound discretion of the their representatives; Presiding Officer, acting under § 958.9, (9) Examining witnesses; parties to a hearing under this part (10) Receiving, ruling on, excluding, shall have the right: or limiting evidence in order to assure (a) To be accompanied, represented, that relevant, reliable and probative and advised, by an attorney or rep- evidence is elicited on the issues in dis- resentative of his or her own choosing; pute, but irrelevant, immaterial or rep- (b) To participate in any conferences etitious evidence is excluded; held by the Presiding Officer; (11) Deciding cases, upon motion of a (c) To agree to stipulations of fact or party, in whole or in part by summary law, which shall be made part of the judgment where there is no disputed record; issue of material fact; (d) To make opening and closing (12) Establishing the record in the statements at the oral hearing; case; and (e) To present oral and documentary (13) Issuing a written Initial Decision evidence relevant to the issues; containing findings of fact, conclusions (f) To submit rebuttal evidence; of law, and determinations with re- (g) To conduct such cross-examina- spect to whether civil penalties, clean- tion as may be required for a full and up costs and/or damages for mailing true disclosure of the facts; and hazardous materials and/or related vio- (h) To submit written briefs, pro- lations under 39 U.S.C. 3018 should be posed findings of fact, and proposed imposed, and if so, the amounts there- conclusions of law. of, after taking into account the penalty considerations contained in 39 § 958.9 Responsibilities and authority U.S.C. 3018(e). of presiding officer. (a) The Presiding Officer shall con- § 958.10 Prehearing conferences. duct a fair and impartial hearing, avoid (a) At a reasonable time after issuing unnecessary delay, maintain order, and the Notice of Docketing and Hearing, assure that a record of the proceeding and with adequate notice to the par- is made. ties, the Presiding Officer may con- (b) The Presiding Officer’s authority duct, in person or by telephone, one or includes, but is not limited to, the fol- more prehearing conferences to discuss lowing: the following: (1) Establishing, upon adequate no- (1) Simplification of the issues; tice to all parties, the date and time of (2) The necessity or desirability of the oral hearing, if any, as well as, in amendments to the pleadings, includ- accordance with § 958.7, selecting the ing the need for a more definite state- hearing site; ment; (2) Holding conferences, by telephone (3) Stipulations or admissions of fact or in person, to identify or simplify the or as to the contents and authenticity issues, or to consider other matters of documents;

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(4) Limitation of the number of wit- which justice requires to protect a nesses; party or person from annoyance, em- (5) Exchange of witness lists, copies barrassment, oppression, or undue bur- of prior statements of witnesses, and den or expense. Such orders may in- copies of hearing exhibits; clude limitations on the scope, method, (6) Scheduling dates for the exchange time and place for discovery, and provi- of witness lists and of proposed exhib- sions for protecting the secrecy of con- its; fidential information or documents. (7) Discovery; Each party shall bear its own expenses (8) Possible changes in the scheduled relating to discovery. oral hearing date, time or site, if re- (b) Depositions. After the issuance of quested; and a Notice of Docketing and Hearing, the (9) Any other matters related to the parties may mutually agree to, or the proceeding. Presiding Officer may, upon applica- (b) Within a reasonable time after tion of either party and for good cause the completion of a prehearing con- shown, order the taking of testimony ference, the Presiding Officer shall of any person by deposition upon oral issue an order detailing all matters examination or written interrogatories agreed upon by the parties, or ordered before any officer authorized to admin- by the Presiding Officer, at such con- ister oaths at the place of examination, ference. for use as evidence or for purposes of discovery. The application for an order § 958.11 Respondent’s access to information. of the Presiding Officer under this paragraph shall specify whether the Except as provided in this section, purpose of the deposition is discovery after receiving the Notice of Docketing or for use as evidence. and Hearing the respondent may re- (1) The time, place, and manner of view and obtain a copy of all relevant taking depositions shall be as mutually and material documents, transcripts, agreed by the parties, or failing such records, and other materials which re- agreement, governed by order of the late to the determination of liability Presiding Officer. by the Determining Official under 39 (2) No testimony taken by deposi- U.S.C. 3018, and all exculpatory information in the possession of the Deter- tions shall be considered as part of the mining Official relating to liability for record in the hearing unless and until civil penalties, clean-up costs and/or such testimony is offered and received damages for mailing hazardous mate- into evidence by order of the Presiding rials and/or related violations under 39 Officer. Deposition testimony will not U.S.C. 3018. The respondent is not enti- ordinarily be received in evidence if an tled to review or obtain a copy of any oral hearing is requested by either document, transcript, record, or other party, and the deponent is available to material which is privileged under Fed- testify personally at the hearing. In eral law. The Presiding Officer is au- such instances, however, deposition thorized to issue orders placing limita- testimony may be used to contradict or tions on the scope, method, time and impeach the testimony of the witness place for accessing this information, given at the hearing. In cases sub- and provisions for protecting the se- mitted for a decision on a written crecy of confidential information or record, the Presiding Officer may, in documents. his or her discretion, receive deposition testimony as evidence in supplemen- § 958.12 Depositions; interrogatories; tation of that record. admission of facts; production and (c) Interrogatories to parties. After the inspection of documents. issuance of a Notice of Docketing and (a) General policy and protective orders. Hearing, a party may serve on the The parties are encouraged to engage other party written interrogatories. in voluntary discovery procedures. In Within 30 days after service, the party connection with any discovery proce- served shall answer each interrogatory dure permitted under this part, the separately in writing, signed under Presiding Officer may issue any order oath, or file objections thereto. Upon

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timely objection by the party, the Pre- the severity and nature of the failure siding Officer will determine the extent or misconduct. to which the interrogatories will be (c) Failure to comply with an order. permitted. When a party fails to comply with an (d) Admission of facts. After the order, including an order for taking a issuance of a Notice of Docketing and deposition, the production of evidence Hearing, a party may serve upon the within the party’s control, or a request other party a request for the admission for admission, the Presiding Officer of specified facts. Within 30 days after may: service, the party served shall answer (1) Draw an inference in favor of the each requested fact or file objections requesting party with regard to the in- thereto. Upon timely objection by the formation sought; party, the Presiding Officer will deter- (2) Prohibit such party from intro- mine the extent to which the request ducing evidence concerning, or other- for admission will be permitted. The wise relying upon, testimony relating factual propositions set out in the re- to the information sought; quest shall be deemed admitted upon (3) Permit the requesting party to in- the failure of a party to respond to the troduce secondary evidence concerning request for admission. the information sought; and (e) Production and inspection of docu- (4) Strike any part of the pleadings ments. Upon motion of a party showing or other submissions of the party fail- good cause therefor, and upon notice, ing to comply with such request. the Presiding Officer may order the (d) Failure to prosecute or defend. If a other party to produce and permit the party fails to prosecute or defend an inspection and copying or action under this part, the Presiding photographing of any designated docu- Officer may dismiss the action, or ments or objects, not privileged, spe- enter an order of default and an Initial cifically identified, and their relevance Decision. (e) Failure to file timely. The Presiding and materiality to the cause or causes Officer may refuse to consider any mo- in issue explained, which are reason- tion or other pleading, report, or re- ably calculated to lead to the discovery sponse which is not filed in a timely or admissible evidence. If the parties fashion. cannot themselves agree thereon, the Presiding Officer shall specify just § 958.14 Ex parte communications. terms and conditions in making the inspection and taking the copies and pho- Communications between a Presiding tographs. Officer and a party shall not be made on any matter in issue unless on notice (f) Limitations. A discovery procedure and opportunity for all parties to par- may not be used to reach documents, ticipate. This prohibition does not transcripts, records, or other material apply to procedural matters. A memo- which a person is not entitled to review randum of any communication between pursuant to § 958.11. the Presiding Officer and a party shall § 958.13 Sanctions. be transmitted by the Presiding Officer to all parties. (a) In general. The Presiding Officer may sanction a person, including any § 958.15 Post-hearing briefs. party, attorney or representative, for: Post-hearing briefs and reply briefs (1) Failing to comply with a lawful may be submitted upon such terms as order or prescribed procedure; established by the Presiding Officer at (2) Failing to prosecute or defend an the conclusion of the hearing. action; or (3) Engaging in other misconduct § 958.16 Transcript of proceedings. that interferes with the speedy, or- Testimony and argument at oral derly, or fair conduct of the hearing. hearings shall be reported verbatim, (b) Reasonableness. Any such sanc- unless the Presiding Officer orders oth- tion, including but not limited to those erwise. Transcripts or copies of the listed in paragraphs (c), (d), and (e) of proceedings may be obtained by the this section, shall reasonably relate to parties at such rates as may be fixed by

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contract between the reporter and the (1) The Judicial Officer may affirm, Postal Service. reduce, reverse, or remand any determination about a penalty or assess- § 958.17 Initial decision. ment by the Presiding Officer. (a) After the conclusion of the hear- (2) The Judicial Officer shall not con- ing, and the receipt of briefs, if any, sider any argument or objection that from the parties, the Presiding Officer was not raised in the hearing unless shall issue a written Initial Decision, the interested party demonstrates that including his or her findings and deter- the failure to raise the argument or ob- minations. Such decision shall include jection before the Presiding Officer was the findings of fact and conclusions of caused by extraordinary cir- law which the Presiding Officer relies cumstances. upon in determining whether the re- (3) If any party demonstrates to the spondent is liable for civil penalties, satisfaction of the Judicial Officer that clean-up costs and/or damages for mail- additional evidence not presented at ing hazardous materials and/or related the hearing is material and that there violations under 39 U.S.C. 3018, and, if were reasonable grounds for the failure liability is found, shall set forth the to present such evidence, the Judicial amount of any civil penalties, clean-up Officer may remand the matter to the costs and/or damages imposed. Presiding Officer for consideration of (b) The Presiding Officer shall such additional evidence. promptly send to each party a copy of (c) Decision of Judicial Officer. The Ju- his or her Initial Decision. A party dicial Officer shall promptly serve each may, in accordance with § 958.18, appeal party to the appeal with a copy of his an adverse Initial Decision to the Judi- or her decision. The decision of the Ju- cial Officer. Unless a party timely ap- dicial Officer constitutes final agency peals in accordance with § 958.18, the action and becomes final and binding Presiding Officer’s Initial Decision, in- on the parties. cluding the findings and determinations, becomes the final agency deci- § 958.19 Form and filing of documents. sion. (a) Every pleading filed in a proceeding under this part must contain a § 958.18 Appeal of initial decision to caption setting forth the title of the Judicial Officer. action, the docket number (after as- (a) Notice of appeal and supporting signment by the Recorder), an accurate brief. A party may appeal an adverse designation of the document, and the Initial Decision by filing, within 30 name, address, and telephone number days after the Presiding Officer issues of the party on whose behalf the paper the Initial Decision, a Notice of Appeal was filed. It shall also be signed by the with the Recorder. The Judicial Officer party or party representative submit- may extend the filing period but only if ting the document. the party files a request for an exten- (b) All pleadings and documents re- sion within the initial 30-day period quired under this part must be filed and demonstrates good cause for such using the Judicial Officer electronic extension. filing system unless the presiding offi- (1) The Notice of Appeal must be ac- cer permits otherwise. The Judicial Of- companied by a written brief speci- ficer electronic filing system Web site fying the party’s exceptions, and any is accessible 24 hours a day at https:// reasons for such exceptions, to the Pre- uspsjoe.justware.com/justiceweb. Docu- siding Officer’s Initial Decision. ments submitted using the electronic (2) Within 30 days of receiving the filing system are considered filed as of party’s brief, the opposing party may the date/time (Eastern Time) reflected file with the Judicial Officer a response in the system. Documents mailed to to the specified exceptions to the Pre- the Recorder are considered filed on siding Officer’s Initial Decision. the date mailed as evidenced by a (b) Form of review. Review by the Ju- United States Postal Service post- dicial Officer will be based entirely on mark. Filings by any other means are the record and written submissions. considered filed upon receipt by the

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Recorder of a complete copy of the fil- ity for civil penalties, clean-up costs ing during normal business hours. Nor- and/or damages for mailing hazardous mal business hours are between 8:45 materials and/or related violations a.m. and 4:45 p.m. (Eastern Time), Mon- under 39 U.S.C. 3018, without the con- day through Friday except holidays. sent of the Presiding Officer or Judi- (c) Pleadings or other document cial Officer. transmittals to, or communications with, the Postal Service, other than to PART 959—RULES OF PRACTICE IN the Recorder under paragraph (a) of PROCEEDINGS RELATIVE TO THE this section, shall be made through the PRIVATE EXPRESS STATUTES Determining Official or designated Postal Service attorney. If a notice of Sec. appearance by a representative is filed 959.1 Authority for rules. on behalf of the respondent, pleadings 959.2 Scope of rules. or document transmittals to, or com- 959.3 Office address and business hours; munications with, the respondent shall electronic filing. be made through his or her representa- 959.4 Demands for payment of postage. tive. 959.5 Appeals from demands. 959.6 Revocations of suspension. [74 FR 18631, Apr. 24, 2009, as amended at 81 959.7 Notice of hearing. FR 40193, June 21, 2016] 959.8 Service of petition filed under § 959.6. 959.9 Filing documents for the record. § 958.20 Service. 959.10 Default. If both parties are participating in 959.11 Amendment of pleadings. 959.12 Continuances and extensions. the electronic filing system, separate 959.13 Hearings. service upon the opposing party is not 959.14 Change of place of hearings. required. Otherwise, documents shall 959.15 Appearances. be served personally or by mail on the 959.16 Presiding officers. opposing party, noting on the docu- 959.17 Evidence. ment filed, or on the transmitting let- 959.18 Subpoenas. ter, that a copy has been so furnished. 959.19 Witness fees. 959.20 Depositions. [81 FR 40194, June 21, 2016] 959.21 Transcript. 959.22 Proposed findings and conclusions. § 958.21 Computation of time. 959.23 Decisions. In computing any period of time pro- 959.24 Exceptions to initial decision or tentative decision. vided for by this part, or any order 959.25 Judicial Officer. issued pursuant to this part, the time 959.26 Motion for reconsideration. begins with the day following the act, 959.27 Modification or revocation of orders. event, or default, and includes the last 959.28 Computation of time. day of the period, unless it is a Satur- 959.29 Official record. day, Sunday, or legal holiday observed 959.30 Public information. by the Federal Government, in which 959.31 Ex parte communications. event it includes the next business day. AUTHORITY: 39 U.S.C. 204, 401; 601–606; 18 Except as otherwise provided in these U.S.C. 1693–1699; 5 U.S.C. 554; 39 CFR 310, 320. rules or an applicable order, prescribed SOURCE: 39 FR 33213, Sept. 16, 1974, unless periods of time are measured in cal- otherwise noted. endar days rather than business days. § 959.1 Authority for rules. § 958.22 Continuances and extensions. These rules are issued by the Judicial Continuances and extensions may be Officer of the U.S. Postal Service pur- granted under these rules for good suant to authority delegated by the cause shown. Postmaster General.

§ 958.23 Settlement. § 959.2 Scope of rules. Either party may make offers of set- These rules apply to all Postal Serv- tlement or proposals of adjustment at ice proceedings in which part 310 of any time. The Determining Official has this title authorizes appeals to the Ju- the exclusive authority to compromise dicial Officer from demands for postage or settle any determinations of liabil- for matter carried in violation of the

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Private Express Statutes, and in pro- (c) Factual allegations that are not ceedings to revoke, as to any person, denied by the petition may be deemed the suspension of provisions of the Pri- to have been admitted. The demand vate Express Statutes in accordance and the petition (together with other with part 320 of this title. documents authorized in this part) shall become the pleadings in appeals § 959.3 Office address and business from demands. hours; electronic filing. [39 FR 33213, Sept. 16, 1974, as amended at 63 (a) The offices of the officials identi- FR 66052, Dec. 1, 1998] fied in these rules are located at 2101 Wilson Boulevard, Suite 600, Arlington, § 959.6 Revocations of suspension. VA 22201–3078. Normal Business hours (a) The General Counsel, or a member are between 8:45 a.m. and 4:45 p.m. of the General Counsel’s staff as may (Eastern Time), Monday through Fri- be designated, may initiate a revoca- day except holidays. tion of the suspension of the Private (b) The Judicial Officer electronic fil- Express Statutes as provided in part ing system Web site is accessible 24 320 of this title as to any person, by fil- hours a day at https:// ing, in triplicate, a petition with the uspsjoe.justware.com/justiceweb. Recorder which [81 FR 40194, June 21, 2016] (1) Names the person involved; (2) States the legal authority under § 959.4 Demands for payment of post- which the proceeding is initiated; age. (3) States the facts in a manner suffi- Final demands for payment of post- cient to enable the person named to age will be accompanied by a copy of make answer thereto; and, these rules and will: (4) Recommends the issuance of an (a) State that the demand is final un- appropriate order. less appealed under these rules within (b) Answer. (1) The person named in 15 days after receipt of the demand; the petition (designated the ‘‘Respond- (b) Describe the transaction on which ent’’ in these rules) shall file an answer the demand is based and the provisions with the Recorder within 15 days after of law or regulation alleged to have being served with a copy of the petition been violated; and in accordance with § 959.8. (c) State the manner in which the (2) The answer shall contain a con- amount of the demand is computed. cise statement admitting, denying, or explaining each of the allegations set § 959.5 Appeals from demands. forth in the petition. (a) A party upon whom a demand for (3) Any facts alleged in the petition postage has been made may appeal which are not denied, or which are ex- from the demand by filing a petition, pressly admitted in the answer, may be in triplicate, with the Recorder, Judi- considered as proved, and no further cial Officer Department, within 15 days evidence regarding these facts need be after receipt of the demand. adduced at the hearing. (b) The petition shall: (4) The answer shall be signed person- (1) Be signed personally by an indi- ally by an individual respondent, or in vidual petitioner, by one of the part- the case of a partnership, by one of the ners of a partnership, or by an officer partners, or, in the case of a corpora- of a corporation or association; tion or association, by an officer there- (2) State the reasons why the person of. filing the petition (designated the (5) The answer shall set forth the re- ‘‘Petitioner’’ in these rules) believes spondent’s address and the name and the demand is not justified; address of respondent’s attorney, if re- (3) Admit or deny each fact alleged in spondent is represented by counsel. the demand and allege any facts upon (6) The answer shall affirmatively which the Petitioner relies to show state whether the respondent will ap- compliance with applicable laws and pear in person or by counsel at the regulations; and, hearing. (4) Be accompanied by a copy of the (7) If the respondent does not desire demand. to appear at the hearing in person or

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by counsel, the matter shall be deemed filing system unless the presiding offi- submitted for determination pursuant cer permits otherwise. If both parties to paragraph (b) of § 959.10. are participating in the electronic filing system, separate service upon the [39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998] opposing party is not required. Other- wise, documents shall be served person- § 959.7 Notice of hearing. ally or by mail on the opposing party, When a petition is filed, the Recorder noting on the document filed, or on the shall issue a notice of hearing, stating transmitting letter, that a copy has the time and place of the hearing and been so furnished. the date for filing an answer which (b) Documents shall be dated and shall not exceed 15 days from the date state the title of the proceeding and, of service of the petition, and a ref- except initial petitions, the docket erence to the effect of failure to file an number. Documents submitted using answer or appear at the hearing. (See the electronic filing system are consid- §§ 959.5(c), 959.6(b), and 959.10.) When- ered filed as of the date/time (Eastern ever practicable, the hearing date shall Time) reflected in the system. Docu- be within 30 days of the date of the no- ments mailed to the Recorder are con- tice. sidered filed on the date mailed as evidenced by a United States Postal Serv- [39 FR 33213, Sept. 16, 1974, as amended at 63 ice postmark. Filings by any other FR 66052, Dec. 1, 1998] means are considered filed upon receipt by the Recorder of a complete copy of § 959.8 Service of petition filed under § 959.6. the filing during normal business hours. (a) The Recorder shall cause a notice of hearing and a copy of the petition to [81 FR 40194, June 21, 2016] be transmitted to the postmaster at any office of address of the respondent § 959.10 Default. in which the respondent is doing busi- (a) If the respondent fails to file an ness, which shall be delivered to the re- answer within the time specified in the spondent or respondent’s agent by said notice of hearing, the respondent shall postmaster or the postmaster’s des- be deemed in default and to have ignee. A receipt acknowledging deliv- waived hearing and further procedural ery of the notice shall be secured from steps. The Judicial Officer shall there- the respondent or respondent’s agent after issue an order without further no- and forwarded to the Recorder, to be- tice to the respondent. come a part of the official record. (b) If the respondent files an answer (b) If, after 5 days, the postmaster or but fails to appear at the hearing, the the postmaster’s designee, can find no presiding officer shall receive peti- person to accept service of the notice tioner’s evidence and render an initial of hearing and petition pursuant to decision. paragraph (a) of this section, the notice [39 FR 33213, Sept. 16, 1974, as amended at 63 and copy of the petition may be deliv- FR 66052, Dec. 1, 1998] ered in the usual manner as other mail addressed to the respondent. A state- § 959.11 Amendment of pleadings. ment, showing the time and place of (a) Amendments proposed prior to delivery, signed by the postal employee the hearing shall be filed with the Re- who delivered the notice of hearing and corder. Amendments proposed there- petition shall be forwarded to the Re- after shall be filed with the presiding corder and such statement shall con- officer. stitute evidence of service. (b) By consent of the parties, a plead- [39 FR 33213, Sept. 16, 1974, as amended at 63 ing may be amended at any time. Also, FR 66052, Dec. 1, 1998] a party may move to amend a pleading at any time prior to the close of the § 959.9 Filing documents for the hearing and, provided that the amend- record. ment is reasonably within the scope of (a) All documents required under this the proceeding initiated by the peti- part must be filed using the electronic tion, the presiding officer shall make

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such ruling on the motion as he or she (b) The names and addresses of the deems fair and equitable to the parties. witnesses who will testify; and, (c) When issues not raised by the (c) The reasons why such evidence pleadings, but reasonably within the cannot be produced at Arlington, VA. scope of the proceedings initiated by The presiding officer shall give consid- the petition, are tried by express or im- eration to the convenience and neces- plied consent of the parties, they shall sity of the parties and the relevancy of be treated in all respects as if they had the evidence to be offered. been raised in the pleadings. Such [39 FR 33213, Sept. 16, 1974, as amended at 63 amendments as may be necessary to FR 66052, Dec. 1, 1998] make the pleadings conform to the evidence, and to raise such issues, shall be § 959.15 Appearances. allowed at any time upon the motion of (a) A respondent may appear and be any party. heard in person or by attorney. (d) If a party objects to the introduc- (b) An attorney may practice before tion of evidence at the hearing on the the Postal Service in accordance with ground that it is not within the issues the rules in part 951 of this title. made by the pleadings, but fails to sat- (c) When a respondent is represented isfy the presiding officer that an by an attorney, all pleadings and other amendment of the pleadings would papers subsequent to the initial peti- prejudice the objecting party on the tion shall be mailed to the attorney. merits, the presiding officer may allow (d) A respondent must promptly file a the amendment and may grant a con- notice of change of attorney. tinuance to enable the objecting party to rebut the evidence presented. § 959.16 Presiding officers. (e) The presiding officer may, upon (a) The presiding officer shall be ei- reasonable notice and upon such terms ther an Administrative Law Judge as are just, permit service of supple- qualified in accordance with law, or the mental pleadings setting forth trans- Judicial Officer. The Chief Administra- actions, occurrences, or events which tive Law Judge shall assign cases to have happened since the date of the Administrative Law Judges upon rota- pleading sought to be supplemented tion so far as practicable. The Judicial and which are relevant to any of the Officer may, for good cause found, pre- issues involved. side at the reception of evidence in pro- [39 FR 33213, Sept. 16, 1974, as amended at 63 ceedings upon request of either party. FR 66052, Dec. 1, 1998] (b) The presiding officer shall have authority to: § 959.12 Continuances and extensions. (1) Administer oaths and affirma- Continuances and extensions will not tions; be granted by the presiding officer ex- (2) Examine witnesses; cept for good cause found. (3) Rule upon offers of proof, admissibility of evidence and matters of proce- § 959.13 Hearings. dure; Hearings are held at 2101 Wilson Bou- (4) Order any pleading amended upon levard, Suite 600, Arlington, VA 22201– motion of a party at any time prior to 3078, or other locations designated by the close of the hearing; the presiding officer. (5) Maintain discipline and decorum and exclude from the hearing any per- [63 FR 66052, Dec. 1, 1998] son acting in an indecorous manner; (6) Require the filing of briefs or § 959.14 Change of place of hearings. memoranda of law on any matter upon Not later than the date fixed for the which he or she is required to rule; filing of the answer, a party may file a (7) Order prehearing conferences for written request that a hearing be held the purpose of settlement or sim- at a place other than that designated plification of issues by the parties; in the notice. The party shall support (8) Order the proceeding reopened at the request with a statement outlining: any time prior to his or her decision (a) The evidence to be offered in such for the receipt of additional evidence; place; and,

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(9) Render an initial decision if the or information pursuant to § 233.1(c) of presiding officer is an Administrative this chapter. Law Judge, which becomes the final de- [39 FR 33213, Sept. 16, 1974, as amended at 56 cision of the Postal Service unless a FR 55825, Oct. 30, 1991] timely appeal is taken; the Judicial Of- ficer may issue a tentative or a final § 959.19 Witness fees. decision. The Postal Service does not pay fees [39 FR 33213, Sept. 16, 1974, as amended at 63 and expenses for a respondent’s wit- FR 66052, Dec. 1, 1998] nesses or for depositions requested by a respondent. § 959.17 Evidence. (a) Except as otherwise provided in § 959.20 Depositions. these rules, the rules of evidence gov- (a) Not later than 5 days after the fil- erning civil proceedings in matters not ing of respondent’s answer, any party involving trial by jury in the District may file an application with the Re- courts of the United States shall gov- corder for the taking of testimony by ern. However, such rules may be re- deposition. In support of such applica- laxed to the extent that the presiding tion, the applicant shall submit under officer deems proper to insure a fair oath or affirmation, a statement con- hearing. The presiding officer shall ex- taining the reasons why such testi- clude irrelevant, immaterial or repeti- mony should be taken by deposition, tious evidence. the time and place, and the name and (b) Testimony shall be under oath or address of the witness whose deposition affirmation and witnesses shall be sub- is desired, the subject matter of the ject to cross-examination. testimony of each witness, its rel- (c) Agreed statements of fact may be evancy, and the name and address of received into evidence. the person before whom the deposition (d) Official notice or knowledge may is to be taken. be taken of the types of matters of (b) If the application be granted, the which judicial notice or knowledge order shall specify the time and place may be taken. thereof, the name of the witness, the (e) The written statement of a com- person before whom the deposition is petent witness may be received into to be taken, and any other necessary evidence provided that such statement information. is relevant to the issues, that the wit- (c) Each deponent shall first be duly ness shall testify under oath at the sworn, and the adverse party shall have hearing that the statement is in all re- the right to cross-examine. The ques- spects true, and, in the case of expert tions and answers, together with all objections, shall be reduced to writing witnesses, that the statement correctly and, unless waived by stipulation of states his or her opinion or knowledge the parties, shall be read to and sub- concerning the matters in question. scribed by the witness in the presence (f) A party who objects to the admis- of the deposition officer who shall cer- sion of evidence shall make a brief tify it in the usual form. The deposi- statement of the grounds for the objection officer shall file the testimony tion. Formal exceptions to the rulings taken by deposition as directed in the of the presiding officer are unneces- order. All objections made at the time sary. of examination shall be noted by the [39 FR 33213, Sept. 16, 1974, as amended at 63 deposition officer and the evidence ob- FR 66052, Dec. 1, 1998] jected to shall be taken subject to the objections. In lieu of participating in § 959.18 Subpoenas. the oral examination, a party may The Postal Service is not authorized transmit written interrogatories to the by law to issue subpoenas requiring the deposition officer, who shall propound attendance or testimony of witnesses them to the witness and record the an- or the production of documents. This swers verbatim. Objections to rel- does not affect the authority of the evancy or materiality of testimony, or Chief Postal Inspector to issue sub- to errors and irregularities occurring poenas for the production of documents at the oral examination in the manner

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of taking the deposition, in the form or be reduced to writing in the witness’ relevancy or materiality of the ques- own words. tions or answers, in the oath or affir- [39 FR 33213, Sept. 16, 1974, as amended at 63 mation, or in the conduct of the par- FR 66052, Dec. 1, 1998] ties, and errors of any kind which might be obviated, cured or removed if § 959.21 Transcript. promptly presented, are waived unless (a) Hearings shall be stenographi- timely objection is made at the taking cally reported by a contract reporter of of the deposition. the Postal Service under the super- (d) At the hearing, any part or all of vision of the assigned presiding officer. the deposition may be offered into evi- Argument upon any matter may be ex- dence by any party who was present or cluded from the transcript by order of represented at the taking of the deposi- the presiding officer. A copy of the tion or who had notice thereof. If the transcript shall be a part of the record deposition is not offered and received and the sole official transcript of the into evidence, it shall not be consid- proceeding. Copies of the transcript ered as a part of the record. The admis- shall be supplied to the parties by the sibility of depositions or parts thereof reporter at rates not to exceed the shall be governed by the rules of evi- maximum rates fixed by the contract dence. between the Postal Service and the re- (e) The party requesting the deposi- porter. Copies of parts of the official tion shall pay all fees required to be record, other than the transcript, may paid to witnesses and the deposition of- be obtained by the respondent from the ficer, and shall provide an original and reporter upon the payment of a reason- one copy thereof for the official record, able price therefor. and shall serve one copy upon the op- (b) Changes in the official transcript posing party. may be made only when they involve (f) Within the United States, or with- errors affecting substance, and then in a territory or possession subject to only in the manner herein provided. No the dominion of the United States, physical changes shall be made in or depositions may be taken before an of- upon the official transcript, or copies ficer authorized to administer oaths by thereof, which have been filed with the the laws of the United States or of the record. Within 10 days after the receipt place where the examination is held; by any party of a copy of the official within a foreign country, depositions transcript, or any part thereof, a party may be taken before a secretary of an may file a motion requesting correc- embassy or legation, consul general, tion of the transcript. The opposing vice consul or consular agent of the party shall, within such time as may United States, or any other person des- be specified by the presiding officer, ignated in the order for the taking of notify the presiding officer in writing the deposition. of his or her concurrence or disagree- (g) Depositions may also be taken ment with the requested corrections. and submitted on written interrog- Failure to interpose timely objection atories in substantially the same man- to a proposed correction shall be con- ner as depositions taken by oral exam- sidered to be concurrence. Thereafter, ination. When a deposition is taken the presiding officer shall by order upon written interrogatories and cross- specify the corrections to be made in interrogatories, none of the parties the transcript. The presiding officer on shall be present or represented, and no his or her own initiative may order person, other than the witness, a steno- corrections to be made in the tran- graphic reporter, and the deposition of- script with prompt notice to the par- ficer, shall be present at the examina- ties of the proceeding. Any changes or- tion of the witness, which fact shall be dered by the presiding officer other certified by the deposition officer, who than by agreement of the parties shall shall propound the interrogatories and be subject to objection and exception. cross-interrogatories to the witness in [39 FR 33213, Sept. 16, 1974, as amended at 63 their order and cause the testimony to FR 66052, Dec. 1, 1998]

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§ 959.22 Proposed findings and conclu- order. The initial decision shall become sions. the final decision of the Postal Service (a) Each party, except one who fails unless an appeal is taken in accordance to answer the complaint or, having an- with § 959.24. swered, either fails to appear at the (c) Written tentative or final decision by When the Judicial hearing or indicates in the answer that the Judicial Officer. Officer presides at the hearing, he or he or she does not desire to appear, she shall issue a final or a tentative de- may submit proposed findings of fact, cision. Such decision shall include find- conclusions of law and supporting rea- ings of fact and conclusions of law, sons either in oral or written form. The with the reasons therefor, upon all the presiding officer may also require the material issues of fact or law presented parties to submit proposed findings of on the record, and appropriate order. fact and conclusions of law with sup- The tentative decision shall become porting reasons. the final decision of the Postal Service (b) Proposed findings of fact, conclu- unless exceptions are filed in accord- sions of law and supporting reasons not ance with § 959.24. presented orally before the close of the hearing, shall, unless otherwise di- [39 FR 33213, Sept. 16, 1974, as amended at 63 rected by the presiding officer, be filed FR 66052, Dec. 1, 1998] within 15 days after the delivery of the § 959.24 Exceptions to initial decision official transcript to the Recorder, who or tentative decision. shall notify the parties of the date of its receipt. The proposed findings of (a) A party in a proceeding presided fact, conclusions of law and supporting over by an Administrative Law Judge, reasons shall be set forth in serially except a party who failed to file an an- numbered paragraphs, and shall state swer, may appeal to the Judicial Offi- with particularity, all pertinent evi- cer by filing exceptions in a brief on dentiary facts in the record with appro- appeal within 15 days from the receipt priate citations to the transcript or ex- of the Administrative Law Judge’s hibits supporting the proposed find- written initial decision. ings. Each proposed conclusion of law (b) A party in a proceeding presided shall be separately stated. over by the Judicial Officer, except one who has failed to file an answer, may [39 FR 33213, Sept. 16, 1974, as amended at 63 file exceptions within 15 days from the FR 66052, Dec. 1, 1998] receipt of the Judicial Officer’s written tentative decision. § 959.23 Decisions. (c) When an initial or tentative deci- (a) Oral decisions. The presiding offi- sion is rendered orally at the close of cer may, in his or her discretion, the hearing, the presiding officer may render an oral decision (an initial deci- then establish and orally give notice to sion by an Administrative Law Judge, the parties participating in the hearing or a tentative or final decision by the of the time limit within which excep- Judicial Officer) at the close of the tions must be filed. hearing. A party who desires an oral (d) Upon receipt of the brief on ap- decision shall notify the presiding offi- peal from an initial decision of an Ad- cer and the opposing party at least 5 ministrative Law Judge, the Recorder days prior to the date set for the hear- shall promptly transmit the record to ing. Either party may submit proposed the Judicial Officer. The date for filing findings of fact and conclusions of law the reply to a brief on appeal or to a either orally or in writing at the con- brief in support of exceptions to a ten- clusion of the hearing. tative decision by the Judicial Officer (b) Written initial decision by Adminis- is 10 days after the receipt thereof. No trative Law Judge. A written initial de- additional briefs shall be received un- cision shall be rendered with all due less requested by the Judicial Officer. speed. The initial decision shall include (e) Briefs on appeal or in support of findings of fact and conclusions of law, exceptions and replies thereto shall be with the reasons therefor, upon all the filed in triplicate with the Recorder, material issues of fact or law presented and contain the following matter in on the record, and an appropriate the order indicated:

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(1) A subject index of the matters Postal Service within 10 days after represented, with page references; a table ceiving it, or within such longer period of cases alphabetically arranged; a list as the Judicial Officer may fix. Each of statutes and texts cited, with page motion for reconsideration shall be ac- references. companied by a brief clearly setting (2) A concise abstract or statement of forth the points of fact and of law re- the case. lied upon in support of said motion. (3) Numbered exceptions to specific findings of fact or conclusions of law of § 959.27 Modification or revocation of the presiding officer. orders. (4) A concise argument clearly set- A party against whom an order has ting forth points of fact and of law re- been issued may file with the Recorder lied upon in support of, or in opposition an application for modification or rev- to, each exception taken, together with ocation, addressed to the Judicial Offi- specific references to the pertinent cer. The Recorder shall transmit a parts of the record and the legal or copy of the application to the General other authorities relied upon. Counsel, who shall file a written reply (f) Unless permission is granted by within 10 days after filing, or such the Judicial Officer, no brief on appeal other period as the Judicial Officer or in support of exceptions shall exceed may fix. A copy of the reply shall be 50 printed or 100 typewritten pages dou- sent to the applicant by the Recorder. ble spaced. Thereafter an order granting or deny- (g) The Judicial Officer will extend ing such application in whole or in part the time to file briefs only upon writ- will be issued by the Judicial Officer. ten motion for good cause found. The Recorder shall promptly notify the [39 FR 33213, Sept. 16, 1974, as amended at 63 movant of the Judicial Officer’s deci- FR 66052, Dec. 1, 1998] sion on the motion. If a brief is not § 959.28 Computation of time. filed within the time prescribed, the defaulting party will be deemed to A designated period of time excludes have abandoned the appeal or waived the day the period begins, and includes the exceptions, and the initial or ten- the last day of the period unless the tative decision shall become the final last day is a Saturday, Sunday, or legal decision of the Postal Service. holiday, in which event the period runs until the close of business on the next [39 FR 33213, Sept. 16, 1974, as amended at 63 business day. FR 66052, Dec. 1, 1998] § 959.29 Official record. § 959.25 Judicial Officer. The transcript of testimony together The Judicial Officer is authorized (a) with all pleadings, orders, exhibits, to act as presiding officer at hearings, briefs and other documents filed in the (b) to render tentative decisions, (c) to proceedings shall constitute the offi- render final decisions of the Postal cial record of the proceeding. Service, (d) to refer the record in any proceedings to the Postmaster General § 959.30 Public information. or the Deputy Postmaster General who will make the final decision of the The Librarian of the Postal Service Postal Service, and (e) to revise or maintains for public inspection in the amend these rules of practice. The en- Library copies of all initial, tentative tire official record will be considered and final decisions of the Postal Serv- before a final decision of the Postal ice. The Recorder maintains the com- Service is rendered. Before rendering a plete official record of every pro- final decision of the Postal Service, the ceeding. Judicial Officer may order the hearing [39 FR 33213, Sept. 16, 1974, as amended at 63 reopened for the presentation of addi- FR 66052, Dec. 1, 1998] tional evidence by the parties. § 959.31 Ex parte communications. § 959.26 Motion for reconsideration. The provisions of 5 U.S.C. 551(14), A party may file a motion for recon- 556(d) and 557(d) prohibiting ex parte sideration of a final decision of the communications are made applicable

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to proceedings under these rules of the Postal Service’s position was sub- practice. stantially justified or special cir- [42 FR 5358, Jan. 28, 1977] cumstances make an award unjust. The rules in this part describe the parties PART 960—RULES RELATIVE TO IM- eligible for awards and the proceedings PLEMENTATION OF THE EQUAL that are covered. They also explain how to apply for awards, and the proce- ACCESS TO JUSTICE ACT IN dures and standards that the Postal POSTAL SERVICE PROCEEDINGS Service will use to make them. Subpart A—General Provisions [46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6797, Mar. 5, 1987] Sec. 960.1 Purpose of these rules. § 960.2 When the Act applies. 960.2 When the Act applies. 960.3 Proceedings covered. The Act applies to any adversary ad- 960.4 Eligibility of applicants. judication pending or commenced be- 960.5 Standards for awards. fore the Postal Service on or after Au- 960.6 Allowable fees and expenses. 960.7 Rulemaking on maximum rates for at- gust 5, 1985. It also applies to any ad- torney fees. versary adjudication commenced on or 960.8 Official authorized to take final action after October 1, 1984, and finally dis- under the Act. posed of before August 5, 1985, provided that an application for fees and ex- Subpart B—Information Required from penses, as described in subpart B of Applicants these rules, has been filed with the 960.9 Contents of application. Postal Service within 30 days after Au- 960.10 Net worth exhibit. gust 5, 1985, and to any adversary adju- 960.11 Documentation of fees and expenses. dication pending on or commenced on 960.12 When an application may be filed. or after October 1, 1981, in which an ap- Subpart C—Procedures for Considering plication for fees and other expenses Applications was timely filed and was dismissed for lack of jurisdiction. 960.13 Filing and service of documents. 960.14 Answer to application. [52 FR 6797, Mar. 5, 1987] 960.15 Reply. 960.16 Comments by other parties. § 960.3 Proceedings covered. 960.17 Settlement. 960.18 Further proceedings. (a) The Act applies to adversary adju- 960.19 Decision. dications conducted by the Postal 960.20 Further Postal Service review. Service. These are: 960.21 Judicial review. (1) Adjudications under 5 U.S.C. 554 960.22 Payment of award. in which the position of the Postal AUTHORITY: 5 U.S.C. 504 (c)(1); 39 U.S.C. 204, Service is presented by an attorney or 401 (2). other representative who enters an ap- SOURCE: 46 FR 45945, Sept. 16, 1981, unless pearance and participates in the pro- otherwise noted. ceeding (for the Postal Service, the types of proceedings generally covered Subpart A—General Provisions are proceedings relative to false representation and cease and desist orders § 960.1 Purpose of these rules. and mailability under chapter 30 of The Equal Access to Justice Act, 5 title 39, U.S.C., with the exception of U.S.C. 504 (called ‘‘the Act’’ in this proceedings under 39 U.S.C. 3008); and part), provides for the award of attor- (2) Appeals of decisions of con- ney fees and other expenses to eligible tracting officers made pursuant to sec- individuals and entities who are parties tion 6 of the Contract Disputes Act of to certain administrative proceedings 1978 (41 U.S.C. 605) before the Postal (called ‘‘adversary adjudications’’) before the Postal Service. An eligible Service Board of Contract Appeals as party may receive an award when it provided in section 8 of that Act. (41 prevails over the Postal Service, unless U.S.C. 607).

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(b) The Postal Service may also des- (c) For the purposes of eligibility, the ignate a proceeding not listed in para- net worth and number of employees of graph (a) of this section as an adver- an applicant shall be determined as of sary adjudication for purposes of the the date the proceeding was initiated, Act by so stating in an order initiating which in proceedings before the Board the proceeding or designating the mat- of Contract Appeals is the date the ap- ter for hearing. The failure to des- plicant files its appeal to the Board. ignate a proceeding as an adversary ad- (d) An applicant who owns an unin- judication shall not preclude the filing corporated business will be considered of an application by a party who be- as an ‘‘individual’’ rather than a ‘‘sole lieves the proceeding is covered by the owner of an unincorporated business’’ Act; whether the proceeding is covered if the issues on which the applicant will then be an issue for resolution in prevails are related primarily to per- proceedings on the application. sonal interests rather than to business (c) If a proceeding includes both mat- interests. ters covered by the Act and matters (e) The employees of an applicant in- specifically excluded from coverage, clude all persons who regularly per- any award made will include only fees form services for remuneration for the and expenses related to covered issues. applicant, under the applicant’s direction and control. Part-time employees [46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987; 67 FR 62179, Oct. 4, 2002] shall be included on a proportional basis. § 960.4 Eligibility of applicants. (f) The net worth and number of employees of the applicant and all of its (a) To be eligible for an award of at- affiliates shall be aggregated to deter- torney fees and other expenses under mine eligibility. Any individual, cor- the Act, the applicant must be a party poration or other entity that directly to the adversary adjudication for which or indirectly controls or owns a major- it seeks an award. The term ‘‘party’’ is ity of the voting shares or other inter- defined in 5 U.S.C. 551(3). The applicant est of the applicant, or any corporation must show by clear and convincing evi- or other entity of which the applicant dence that it meets all conditions of directly or indirectly owns or controls eligibility set out in this subpart and a majority of the voting shares or in subpart B and must submit addi- other interest, will be considered an af- tional information to verify its eligi- filiate for purposes of this part, unless bility upon order by the adjudicative the adjudicative officer determines officer. that such treatment would be unjust (b) The types of eligible applicants and contrary to the purposes of the Act are as follows: in light of the actual relationship be- (1) An individual with a net worth of tween the affiliated entities. In addi- not more than $2 million; (2) The sole owner of an unincor- tion, the adjudicative officer may de- porated business who has a net worth termine that financial relationships of of not more than $7 million, including the applicant other than those de- both personal and business interests, scribed in this paragraph constitute and not more than 500 employees; special circumstances that would make (3) A charitable or other tax-exempt an award unjust. organization described in section (g) An applicant that participates in 501(c)(3) of the Internal Revenue Code a proceeding primarily on behalf of one (26 U.S.C. 501(c)(3)) with not more than or more other persons or entities that 500 employees; would be ineligible is not itself eligible (4) A cooperative association as de- for an award. fined in section 15(a) of the Agricul- [46 FR 45945, Sept. 16, 1981, as amended at 52 tural Marketing Act (12 U.S.C. 1141j(a)) FR 6798, Mar. 5, 1987] with not more than 500 employees; and (5) Any other partnerships, corpora- § 960.5 Standards for awards. tion, association, unit of local govern- (a) A prevailing applicant may re- ment, or organization with a net worth ceive an award for fees and expenses in- of not more than $7 million and not curred in connection with a proceeding, more than 500 employees. including expenses and fees incurred in

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filing for an award under the Act, or in (3) The time actually spent in the a significant and discrete substantive representation of the applicant; portion of the proceeding, unless the (4) The time reasonably spent in light position of the agency over which the of the difficulty or complexity of the applicant has prevailed was substan- issues in the proceeding; and tially justified. The position of the (5) Such other factors as may bear on agency includes in addition to the posi- the value of the services provided. tion taken by the agency in the adver- (d) The reasonable cost of any study, sary adjudication, the action or failure analysis, engineering report, test, to act by the agency upon which the project or similar matter prepared on adversary adjudication is based. The burden of proof that an award should behalf of a party may be awarded, to not be made to an eligible prevailing the extent that the charge for the serv- applicant is on Postal Service counsel. ice does not exceed the prevailing rate (b) An award will be reduced or de- for similar services, and the study or nied if the applicant has unduly or un- other matter was necessary for prepa- reasonably protracted the proceeding ration of the applicant’s case. or if special circumstances make the [46 FR 45945, Sept. 16, 1981, as amended at 52 award sought unjust. FR 6798, Mar. 5, 1987; 66 FR 55577, Nov. 2, 2001] [46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987] § 960.7 Rulemaking on maximum rates for attorney fees. § 960.6 Allowable fees and expenses. (a) If warranted by an increase in the (a) Awards will be based on rates cus- cost of living or by special cir- tomarily charged by persons engaged cumstances (such as limited avail- in the business of acting as attorneys, ability of attorneys qualified to handle agents and expert witnesses, even if the certain types of proceedings), the Post- services were made available without al Service may adopt regulations pro- charge or at a reduced rate to the ap- viding that attorney fees may be plicant. Attorney fees may not be re- awarded at a rate higher than $125.00 covered by parties appearing pro se in per hour, or such rate as prescribed by postal proceedings. 5 U.S.C. 504, in some or all of the types (b) No award for the fee of an attor- of proceedings covered by this part. ney or agent under these rules may ex- The Postal Service will conduct any ceed $125.00 per hour, or such rate as rulemaking proceedings for this pur- prescribed by 5 U.S.C. 504. No award to pose under the informal rulemaking compensate an expert witness may ex- procedures of the Administrative Pro- ceed the highest rate at which the cedure Act. Postal Service pays expert witnesses. (b) Any person may request the Post- However, an award may also include al Service to initiate a rulemaking pro- the reasonable expenses of the attor- ceeding to increase the maximum rate ney, agent, or witness as a separate item, if the attorney, agent or witness for attorney fees. The request should ordinarily charges clients separately identify the rate the person believes for such expenses. the Postal Service should establish and (c) In determining the reasonableness the types of proceedings in which the of the fee sought for an attorney, agent rate should be used. It should also ex- or expert witness, the adjudicative offi- plain fully the reasons why the higher cer shall consider the following: rate is warranted. The Postal Service (1) If the attorney, agent or witness will respond to the request within 60 is in private practice, his or her cus- days after it is filed, by determining to tomary fee for similar services, or, if initiate a rulemaking proceeding, de- an employee of the applicant, the fully nying the request, or taking other ap- allocated cost of the services; propriate action. (2) The prevailing rate for similar [46 FR 45945, Sept. 16, 1981, as amended at 66 services in the community in which the FR 55577, Nov. 2, 2001] attorney, agent or witness ordinarily performs services;

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§ 960.8 Official authorized to take final (d) The application may also include action under the Act. any other matters that the applicant wishes the Postal Service to consider The Postal Service official who ren- in determining whether and in what ders the final agency decision in a pro- amount an award should be made. ceeding under § 952.26 or § 953.15, or the (e) The application shall be signed by panel that renders the decision in an the applicant or an authorized officer appeal before the Board of Contract or attorney of the applicant. It shall Appeals under part 955 procedures, as also contain or be accompanied by a the case may be, is authorized to take written verification under oath or final action on matters pertaining to under penalty of perjury that the infor- the Equal Access to Justice Act as ap- mation provided in the application is plied to the proceeding. true and correct. [52 FR 6798, Mar. 5, 1987] [46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987] Subpart B—Information Required From Applicants § 960.10 Net worth exhibit. (a) Each applicant except a qualified § 960.9 Contents of application. tax-exempt organization or cooperative association must provide with its ap- (a) An application for an award of plication a detailed exhibit showing fees and expenses under the Act shall the net worth of the applicant and any identify the applicant and the pro- affiliates (as defined in § 960.4(f)) when ceeding for which an award is sought. the proceeding was initiated. The ex- The application shall show that the ap- hibit may be in any form convenient to plicant has prevailed and identify the the applicant that provides full disclo- position of the Postal Service in the sure of the applicant’s and its affili- proceeding that the applicant alleges ates’ assets and liabilities and is suffi- was not substantially justified. Unless cient to determine whether the appli- the applicant is an individual, the ap- cant qualifies under the standards in plication shall also state the number of this part. The adjudicative officer may employees of the applicant and de- require an applicant to file additional scribe briefly the type and purpose of information to determine its eligibility its organization or business. for an award. (b) The application shall also include (b) Ordinarily, the net worth exhibit a statement that the applicant’s net will be included in the public record of worth does not exceed $2 million (if an the proceeding. However, an applicant individual) or $7 million (for all other that objects to public disclosure of in- applicants, including their affiliates.) formation in any portion of the exhibit However, an applicant may omit this and believes there are legal grounds for statement if: withholding it from disclosure may (1) It attaches a copy of a ruling by submit that portion of the exhibit di- the Internal Revenue Service that it rectly to the adjudicative officer in a qualifies as an organization described sealed envelope labeled ‘‘Confidential in section 501(c)(3) of the Internal Rev- Financial Information’’, accompanied enue Code (26 U.S.C. 501(c)(3)) or, in the by a motion to withhold the informa- case of a tax-exempt organization not tion from public disclosure. The mo- required to obtain a ruling from the In- tion shall describe the information ternal Revenue Service on its exempt sought to be withheld and explain, in status, a statement that describes the detail, why it falls within one or more basis for the applicant’s belief that it of the specific exemptions from manda- qualifies under such section; or tory disclosure under the Freedom of (2) It states on the application that it Information Act, 5 U.S.C. 552(b) (1) is a cooperative association as defined through (9), why public disclosure of in section 15(a) of the Agricultural the information would adversely affect Marketing Act (12 U.S.C. 1141j(a)). the applicant, and why disclosure is (c) The application shall state the not required in the public interest. The amount of fees and expenses for which material in question shall be served on an award is sought. counsel representing the agency

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against which the applicant seeks an proceeding or in a significant and dis- award, but need not be served on any crete substantive portion of the pro- other party to the proceeding. If the ceeding, but in no case later than 30 adjudicative officer finds that the in- days after the Postal Service’s final formation should not be withheld from disposition of the proceeding. disclosure, it shall be placed in the (b) If review or reconsideration is public record of the proceeding. Other- sought or taken of a decision as to wise, any request to inspect or copy which an applicant believes it has pre- the exhibit shall be disposed of in ac- vailed, proceedings for the award of cordance with the Postal Service’s es- fees shall be stayed pending final dis- tablished procedures under the Free- position of the underlying controversy. dom of Information Act, part 265 of (c) For purposes of this rule, final this title. disposition means the later of (1) the date on which an initial decision or § 960.11 Documentation of fees and ex- other recommended disposition of the penses. merits of the proceeding by an adju- (a) The application shall be accom- dicative officer or intermediate review panied by full documentation of the board becomes administratively final; fees and expenses, including the cost of (2) Issuance of an order disposing of any study, analysis, engineering re- any petitions for reconsideration of the port, test, project or similar matter, Postal Service’s final order in the pro- for which an award is sought. A sepa- ceeding; rate itemized statement shall be sub- (3) If no petition for reconsideration mitted for each professional firm or in- is filed, the last date on which such a dividual whose services are covered by petition could have been filed; the application, showing the hours (4) Issuance of a final order or any spent in connection with the pro- other final resolution of a proceeding, ceeding by each individual, a descrip- such as a settlement or voluntary dis- tion of the specific services performed, missal, which is not subject to a peti- the rate at which each fee has been tion for reconsideration; computed, any expenses for which re- (5) In proceedings under 39 U.S.C. imbursement is sought, the total 3005, on the date that an Administra- amount claimed, and the total amount tive Law Judge enters an order indefi- paid or payable by the applicant or by nitely suspending further proceedings any other person or entity for the serv- on the basis of a compromise agree- ices provided. The adjudicative officer ment entered into between the parties; may require the applicant to provide or vouchers, receipts, or other substan- (6) In proceedings before the Board of tiation for any expenses claimed. In ad- Contract Appeals, the Board of Con- dition, the Board of Contract Appeals tract Appeals decision on quantum. may require an applicant to submit to When the Board decides only entitle- an audit by the Postal Service of its ment and remands the issue of quan- claimed fees and expenses. tum to the parties, the final disposi- (b) Where the case has been sustained tion occurs when the parties execute in part and denied in part or where the an agreement on quantum, or if the applicant has prevailed in only a sig- parties cannot agree on quantum and nificant and discrete substantive por- resubmit the quantum dispute to the tion of the case, the application must Board, when the Board issues a deci- be limited to fees and expenses allo- sion on quantum. cable to the portion of the case as to [46 FR 45945, Sept. 16, 1981, as amended at 52 which the applicant was the prevailing FR 6798, Mar. 5, 1987] party. [46 FR 45945, Sept. 16, 1981, as amended at 52 Subpart C—Procedures for FR 6798, Mar. 5, 1987] Considering Applications § 960.12 When an application may be § 960.13 Filing and service of docu- filed. ments. (a) An application may be filed when- Any application for an award or ever the applicant has prevailed in the other pleading or document related to

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an application shall be filed and served termines that the public interest re- on all parties to the proceeding in the quires such participation in order to same manner as other pleadings in the permit full exploration of matters proceeding, except as provided in raised in the comments. § 960.11(b) for confidential financial information. § 960.17 Settlement. § 960.14 Answer to application. The applicant and the Postal Service may agree on a proposed settlement of (a) Within 30 days after service of an the award before final action on the ap- application, counsel representing the plication, either in connection with a Postal Service may file an answer to settlement of the underlying pro- the application. Unless the Postal ceeding, or after the underlying pro- Service counsel requests an extension ceeding has been concluded. If a pre- of time for filing or files a statement of intent to negotiate under paragraph (b) vailing party and Postal Service coun- of this section, failure to file an answer sel agree on a proposed settlement of within the 30-day period may be treat- an award before an application has ed as a consent to the award requested. been filed, the application shall be filed (b) If the Postal Service counsel and with the proposed settlement. the applicant believe that the issues in the fee application can be settled, they § 960.18 Further proceedings. may jointly file a statement of their (a) Ordinarily, the determination of intent to negotiate a settlement. The an award will be made on the basis of filing of this statement shall extend the written record. However, on re- the time for filing an answer for an ad- quest of either the applicant or Postal ditional 30 days, and further extensions Service counsel, or on his or her own may be granted by the adjudicative of- initiative, the adjudicative officer may ficer upon request by Postal Service order further proceedings, such as an counsel and the applicant. informal conference, oral argument, (c) The answer shall explain in detail additional written submissions, or an any objections to the award requested evidentiary hearing. Such further pro- and identify the facts relied on in sup- ceedings shall be held only when nec- port of the Postal Service’s position. If essary for full and fair resolution of the the answer is based on any alleged issues arising from the application, and facts not already in the record of the shall be conducted as promptly as pos- proceeding, the Postal Service shall in- sible. Whether or not the position of clude with the answer either sup- the agency was substantially justified porting affidavits or a request for fur- shall be determined on the basis of the ther proceedings under § 960.19. entire administrative record that is made in the adversary adjudication for § 960.15 Reply. which fees and other expenses are Within 15 days after service of an an- sought. swer, the applicant may file a reply. If (b) A request that the adjudicative the reply is based on any alleged facts officer order further proceedings under not already in the record of the pro- this section shall specifically identify ceeding, the applicant shall include the information sought or the disputed with the reply either supporting affida- issues and shall explain why the addi- vits or a request for further pro- tional proceedings are necessary to re- ceedings under § 960.19. solve the issues. § 960.16 Comments by other parties. [46 FR 45945, Sept. 16, 1981, as amended at 52 Any party to a proceeding other than FR 6798, Mar. 5, 1987] the applicant and Postal Service may file comments on an application within § 960.19 Decision. 30 days after it is served or on an an- (a) The adjudicative officer shall swer within 15 days after it is served. A issue an initial decision on the applica- commenting party may not participate tion as promptly as possible after com- further in proceedings on the applica- pletion of proceedings on the application unless the adjudicative officer de- tion. The decision shall include written

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findings and conclusions on the appli- § 960.21 Judicial review. cant’s eligibility and status as a pre- A party other than the Postal Serv- vailing party, and an explanation of ice may, within 30 days after a deter- the reasons for any difference between mination on the award is made, appeal the amount requested and the amount the determination to the court of the awarded. The decision shall also in- United States having jurisdiction to re- clude, if at issue, findings on whether view the merits of the underlying deci- the Postal Service’s position was sub- sion of the agency adversary adjudica- stantially justified, whether the appli- tion in accordance with 5 U.S.C. cant unduly protracted the pro- 504(c)(2). ceedings, or whether special cir- [52 FR 6799, Mar. 5, 1987] cumstances make an award unjust. If the applicant has sought an award § 960.22 Payment of award. against the Postal Service and another agency, the decision shall allocate re- An applicant seeking payment of an award shall submit to the Judicial Offi- sponsibility for payment of any award cer a copy of the Postal Service’s final made between the Postal Service and decision granting the award, accom- the other agency, and shall explain the panied by a statement that the appli- reasons for the allocation made. cant will not seek review of the deci- (b) The Board of Contract Appeals sion in the United States courts. Re- shall issue its decision on the applica- quests for payment should be sent to: tion as promptly as possible after com- Judicial Officer, 2101 Wilson Boulevard, pletion of proceedings on the applica- Suite 600, Arlington, VA 22201–3078. The tion. Whenever possible, the decision Judicial Officer shall submit certifi- shall be made by the same Administra- cation for payment to the Postal Data tive Judge or panel that decided the Center. The Postal Service will pay the contract appeal for which fees are amount awarded to the applicant with- sought. The decision shall be in the for- in 60 days, unless judicial review of the mat described in paragraph (a) of this award or of the underlying decision of section. the adversary adjudication has been sought by the applicant or any other [46 FR 45945, Sept. 16, 1981, as amended at 52 party to the proceeding. FR 6798, Mar. 5, 1987] [46 FR 45945, Sept. 16, 1981, as amended at 63 § 960.20 Further Postal Service review. FR 66052, Dec. 1, 1998] (a) Either the applicant or Postal Service counsel may seek review of the PART 961—RULES OF PRACTICE IN initial decision on the fee application, PROCEEDINGS UNDER SECTION 5 in accordance with § 952.25 or § 953.14. If OF THE DEBT COLLECTION ACT neither the applicant nor the Postal Service counsel seeks review, the ini- Sec. tial decision on the application shall 961.1 Authority for rules. become a final decision of the Postal 961.2 Scope of rules. 961.3 Definitions. Service 30 days after it is issued. If re- 961.4 Employee petition for a hearing. view is taken, the Judicial Officer will 961.5 Effect of filing a petition. issue a final decision on the applica- 961.6 Filing, docketing, and serving docu- tion or remand the application to the ments; computation of time; representa- adjudicative officer for further pro- tion of parties. ceedings. 961.7 Answer to petition. (b) In Board of Contract Appeals pro- 961.8 Hearing Official authority and responsibilities. ceedings, either party may seek recon- 961.9 Opportunity for oral hearing. sideration of the decision on the fee ap- 961.10 Effect of Hearing Official’s decision; plication in accordance with 39 CFR motion for reconsideration. 955.30. 961.11 Consequences for failure to comply with rules. [46 FR 45945, Sept. 16, 1981, as amended at 52 961.12 Ex parte communications. FR 6798, Mar. 5, 1987] AUTHORITY: 39 U.S.C. 204, 401; 5 U.S.C. 5514.

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SOURCE: 79 FR 22026, Apr. 21, 2014, unless or Acting Judicial Officer of the United otherwise noted. States Postal Service. (e) Notice of Involuntary Administrative § 961.1 Authority for rules. Salary Offsets Under the Debt Collection These rules are issued by the Judicial Act refers to the formal written notice Officer pursuant to authority delegated required by section 5 of the Debt Col- by the Postmaster General. lection Act, including the provision of notice of the procedures under this § 961.2 Scope of rules. Part, before involuntary collection de- The rules in this part apply to the ductions can be taken from an employ- hearing provided by section 5 of the ee’s salary. Debt Collection Act of 1982, as amend- (f) Postmaster/Installation Head refers ed, 5 U.S.C. 5514, challenging the Postal to the Postal Service official who is au- Service’s determination of the exist- thorized under the Postal Service Em- ence or amount of an employee debt to ployee and Labor Relations Manual to the Postal Service, or of the terms of make the initial determination of em- the employee’s debt repayment sched- ployee indebtedness and to issue the ule. In addition, these rules apply to a ‘‘Notice of Involuntary Administrative hearing under section 5 of the Debt Salary Offsets Under the Debt Collec- Collection Act when an Administrative tion Act.’’ Law Judge or an Administrative Judge (g) Recorder refers to the Recorder, in the Judicial Officer Department is Judicial Officer Department, U.S. Post- designated as the Hearing Official for a al Service, located at 2101 Wilson Bou- creditor Federal agency other than the levard, Suite 600, Arlington, VA 22201– Postal Service pursuant to an agree- 3078. The Recorder’s telephone number ment between the Postal Service and is (703) 812–1900, and the fax number is that agency. In such cases, all ref- (703) 812–1901. erences to Postal Service within these rules shall be construed to refer to the § 961.4 Employee petition for a hear- creditor Federal agency involved. ing. (a) If an employee desires a hearing, § 961.3 Definitions. prescribed by section 5 of the Debt Col- As used in this part: lection Act, to challenge the Postal (a) Employee refers to a current em- Service’s determination of the exist- ployee of the Postal Service who is al- ence or amount of a debt, or to chal- leged to be indebted to the Postal Serv- lenge the involuntary repayment terms ice; or to an employee of another Fed- proposed by the Postal Service, the em- eral agency who is alleged to be in- ployee must file a written petition debted to that other creditor Federal electronically at https:// agency and whose hearing under sec- uspsjoe.justware.com/justiceweb, or by tion 5 of the Debt Collection Act is mail at Recorder, Judicial Officer De- being conducted under these rules. partment, United States Postal Serv- (b) General Counsel refers to the Gen- ice, 2101 Wilson Blvd., Suite 600, Arling- eral Counsel of the Postal Service, and ton, VA 22201–3078, on or before the fif- includes a designated representative. teenth (15th) calendar day following (c) Hearing Official refers to an Ad- the receipt of the Postal Service’s ministrative Law Judge qualified to ‘‘Notice of Involuntary Administrative hear cases under the Administrative Salary Offsets Under the Debt Collec- Procedure Act, an Administrative tion Act.’’ The Hearing Official, in his Judge appointed under the Contract or her discretion may waive this dead- Disputes Act of 1978, or other qualified line upon a demonstration of good person not under the control or super- cause. In the event that the Postal vision of the Postmaster General, who Service initiated involuntary adminis- is designated by the Judicial Officer to trative salary offsets without having conduct the hearing under section 5 of issued a Notice as required by the Debt the Debt Collection Act of 1982, as Collection Act, the Hearing Official, in amended, 5 U.S.C. 5514. his or her discretion, may retain au- (d) Judicial Officer refers to the Judi- thority to resolve the debt assessment cial Officer, Associate Judicial Officer, as if a Notice had been issued, and may

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order the Postal Service to return any (c) The employee shall file with the improperly offset money. Recorder, any additional information (b) A sample petition is available directed by the Hearing Official. through the Judicial Officer Electronic [79 FR 22026, Apr. 21, 2014, as amended at 80 Filing Web site (https:// FR 54722, Sept. 11, 2015] uspsjoe.justware.com/justiceweb). The hearing petition shall include the fol- § 961.5 Effect of filing a petition. lowing: Upon receipt and docketing of the (1) The words, ‘‘Petition for Hearing employee’s petition for a hearing, fur- under the Debt Collection Act,’’ promi- ther collection activity by the Postal nently captioned at the top of the first Service must cease, as required by sec- page; tion 5 of the Debt Collection Act until (2) The name of the employee, the the petition is resolved by the Hearing employee’s work address, home ad- Official. dress, work telephone number, home telephone number, and email address, § 961.6 Filing, docketing and serving if any, or other address and telephone documents; computation of time; number at which the employee may be representation of parties. contacted during business hours; (a) Filing. After a petition is filed, all (3) A statement of the date on which documents relating to the Debt Collec- the employee received the ‘‘Notice of tion Act hearing proceedings must be Involuntary Administrative Salary Off- filed using the electronic filing system sets Under the Debt Collection Act,’’ unless the Hearing Official permits and a copy of the Notice; otherwise. Documents submitted using (4) A statement indicating whether the electronic filing system are consid- the employee challenges: ered filed as of the date/time (Eastern (i) The existence of the debt identi- Time) reflected in the system. Docu- fied in the Notice of Involuntary Ad- ments mailed to the Recorder are con- ministrative Salary Offsets; sidered filed on the date mailed as evi- (ii) the amount of the debt identified denced by a United States Postal Serv- in the Notice; and/or ice postmark. Filings by any other (iii) the involuntary repayment means are considered filed upon receipt terms identified by the Postal Service by the Recorder of a complete copy of in the Notice. For each challenge, the the filing during normal business hours employee’s petition shall indicate the (Normal Recorder office business hours basis of the employee’s disagreement. are between 8:45 a.m. and 4:45 p.m., The employee should identify and ex- Eastern Time). If both parties are par- plain the facts, evidence, and legal ar- ticipating via the electronic filing sys- guments which support his or her posi- tem, separate service upon the oppos- tion; ing party is not required. Otherwise, (5) Copies of all records in the em- documents shall be served personally ployee’s possession which relate to the or by mail on the opposing party, not- debt; and ing on the document filed, or on the (6) If an employee contends that the transmitting letter, that a copy has Postal Service’s proposed offset sched- been so furnished. ule would result in a severe financial (b) Docketing. The Recorder will hardship on the employee, his or her maintain a record of Debt Collection spouse, and dependents, the employee Act proceedings and will assign a dock- shall identify an alternative offset et number to each such case. After no- schedule. As directed by the Hearing tification of the docket number, the Official, the employee shall provide a employee and the Postal Service’s rep- statement and supporting documents resentative should refer to it on any indicating the employee’s financial further filings regarding the petition. status. This statement should address (c) Time computation. A filing period total income from all sources; assets; under the rules in this Part excludes liabilities; number of dependents; and the day the period begins, and includes expenses for food, housing, clothing, the last day of the period unless the transportation, medical care, and ex- last day is a Saturday, Sunday, or legal ceptional expenses, if any. holiday, in which event the period runs

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until the close of business on the next (c) Conducting telephone conferences business day. Requests for extensions with the parties to expedite the proof time shall be made in writing prior ceedings. The Hearing Official will pre- to the date on which the submission is pare a Memorandum of Telephone Con- due, state the reason for the extension ference, which shall be transmitted to request, represent that the moving both parties and which serves as the of- party has contacted the opposing party ficial record of that conference. about the request, or made reasonable (d) After considering the positions of efforts to do so, and indicate whether the parties, determining whether an the opposing party consents to the ex- oral hearing (or alternatively, a hear- tension. Requests for extensions of ing solely on written submissions) time submitted after the date on which shall be conducted, and setting the the submission was due shall explain place, date, and time for such a hear- why the moving party was unable to ing. request an extension prior to the dead- (e) Administering oaths or affirma- line. tions to witnesses. (d) Representation of parties. The rep- (f) Conducting the hearing in a man- resentative of the Postal Service, as ner to maintain discipline and decorum designated by the General Counsel, while assuring that relevant, reliable shall file a notice of appearance as soon and probative evidence is elicited on as practicable, but no later than the the issues in dispute, but irrelevant, date for filing the answer. If an em- immaterial or repetitious evidence is ployee has a representative, he or she excluded. The Hearing Official in his or also shall file a notice of appearance as her discretion may examine witnesses soon as practicable, and further trans- to ensure that a satisfactory record is missions of documents and other com- developed. munications by and with the employee (g) Establishing the record in the shall be made through his or her rep- case. The weight to be attached to any resentative. evidence of record will rest within the [79 FR 22026, Apr. 21, 2014, as amended at 80 discretion of the Hearing Official. Ex- FR 54722, Sept. 11, 2015] cept as the Hearing Official may otherwise order, no proof shall be received in § 961.7 Answer to petition. evidence after completion of an oral Within 15 days from the date of re- hearing or, in cases submitted on the ceiving the petition, the Postal Serv- written record, after notification by ice’s representative shall file an answer the Hearing Official that the record is to the petition, and attach all available closed. The Hearing Official may re- relevant records and documents in sup- quire either party, with appropriate port of the Postal Service’s debt claim, notice to the other party, to submit ad- and/or the administrative salary offset ditional evidence on any relevant mat- schedule proposed by the Postal Serv- ter. ice for collecting any such claim. The (h) Granting reasonable time exten- answer shall provide a clear and thor- sions or other relief for good cause ough description of the basis for the shown in the Hearing Official’s sole dis- Postal Service’s determination of the cretion. alleged debt, its calculation of the (i) Issuing the final decision. The de- amount of the alleged debt, and/or its cision must include the determination proposed offset schedule. of the amount and validity of the alleged debt and, where applicable, the § 961.8 Hearing Official authority and repayment schedule. The Hearing Offi- responsibilities. cial will issue the decision as soon as The Hearing Official’s authority in- practicable after the close of the cludes, but is not limited to, the fol- record. Collection activity remains lowing: stayed until the decision has issued. (a) Ruling on all motions or requests by the parties. § 961.9 Opportunity for oral hearing. (b) Issuing notices, orders or memo- An oral hearing shall be conducted in randa to the parties concerning the the sole discretion of the Hearing Offi- hearing proceedings. cial. An oral hearing may be conducted

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in-person, by telephone, by video con- (c) If a party fails to comply with ference, or other appropriate means as these Rules or the Hearing Official’s directed by the Hearing Official. When orders, the Hearing Official may take the Hearing Official determines that an such action as he or she deems reason- oral hearing shall not be conducted, able and proper under the cir- the decision shall be based solely on cumstances, including dismissing or the written submissions. The Hearing granting the petition as appropriate. Official shall arrange for the recording and transcription of an oral hearing, § 961.12 Ex parte communications. which shall serve as the official record Ex parte communications are not al- of the hearing. In the event of an unex- lowed between a party and the Hearing cused absence, the hearing may pro- Official or the Official’s staff. Ex parte ceed without the participation of the communication means an oral or writ- absent party. ten communication, not on the public record, with one party only with re- § 961.10 Effect of Hearing Official’s de- spect to which reasonable prior notice cision; motion for reconsideration. to all parties is not given, but it shall (a) After the receipt of written sub- not include requests for status reports missions or after the conclusion of the or procedural matters. A memorandum hearing and the receipt of post-hearing of any communication between the briefs, if any, the Hearing Official shall Hearing Official and a party will be issue a written decision, which shall in- transmitted to both parties. clude the findings of fact and conclusions of law, relied upon. PART 962—RULES OF PRACTICE IN (b) The Hearing Official shall send PROCEEDINGS RELATIVE TO THE each party a copy of the decision. The PROGRAM FRAUD CIVIL REM- Hearing Official’s decision shall be the EDIES ACT final administrative determination on the employee’s debt or repayment Sec. schedule. No reconsideration of the de- 962.1 Purpose. cision will be allowed unless a motion 962.2 Definitions. for reconsideration is filed within 10 962.3 Petition for hearing. days from receipt of the decision and 962.4 Referral of complaint. shows good cause for reconsideration. 962.5 Scope of hearing; evidentiary standard. Reconsideration will be allowed only in 962.6 Notice of hearing. the discretion of the Hearing Official. 962.7 Hearing location. A motion for reconsideration by the 962.8 Rights of parties. employee will not operate to stay a 962.9 Responsibilities and authority of pre- collection action authorized by the siding officer. Hearing Official’s decision. 962.10 Prehearing conferences. 962.11 Respondent access to information. § 961.11 Consequences for failure to 962.12 Depositions; interrogatories; admis- comply with rules. sion of facts; production and inspection of documents. (a) The Hearing Official may deter- 962.13 Subpoenas. mine that the employee has abandoned 962.14 Enforcement of subpoenas. the right to a hearing, and that admin- 962.15 Sanctions. istrative offset may be initiated if the 962.16 Disqualification of reviewing official or presiding official. employee files his or her petition late 962.17 Ex parte communications. without good cause; or files a with- 962.18 Post-hearing briefs. drawal of the employee’s petition for a 962.19 Transcript of proceedings. hearing. 962.20 Initial decision. (b) The Hearing Official may deter- 962.21 Appeal of initial decision to judicial mine that the administrative offset officer. may not be initiated if the Postal Serv- 962.22 Form and filing of documents. 962.23 Service. ice fails to file the answer or files the 962.24 Computation of time. answer late without good cause; or files 962.25 Continuances and extensions. a withdrawal of the debt determination 962.26 Settlement. at issue. 962.27 Limitations.

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AUTHORITY: 31 U.S.C. 3801–12; 39 U.S.C. 401; (l) Respondent refers to any person al- 5 U.S.C. 554. leged to be liable for a civil penalty or SOURCE: 52 FR 12904, Apr. 20, 1987, unless assessment under 31 U.S.C. 3802. otherwise noted. (m) Reviewing Official refers to the General Counsel of the Postal Service § 962.1 Purpose. or any designee within the Law Depart- ment who serves in a position for This part establishes the procedures which the rate of basic pay is not less governing the hearing and appeal than the minimum rate payable under rights of any person alleged to be liable section 5376 of title 5 of the United for civil penalties and assessments States Code. under the Program Fraud Civil Rem- edies Act of 1986 (codified at 31 U.S.C. [52 FR 12904, Apr. 20, 1987, as amended at 63 3801–3812). FR 66053, Dec. 1, 1998; 67 FR 62179, Oct. 4, 2002; 81 FR 40194, June 21, 2016] § 962.2 Definitions. § 962.3 Petition for hearing. (a) Attorney refers to an individual Within 30 days of receiving the Post- authorized to practice law in any of the al Service’s Complaint, issued pursuant United States or the District of Colum- to § 273.8 of this title, alleging liability bia or a territory of the United States. under 31 U.S.C. 3802, the Respondent (b) Complaint refers to the adminis- may request a hearing under the Pro- trative Complaint served by the Re- gram Fraud Civil Remedies Act by fil- viewing Official on a Respondent pur- ing a written Hearing Petition with the suant to § 273.8 of this title. Recorder in accordance with § 962.22(b). (c) Initial Decision refers to the writ- The Respondent’s Petition must inten decision which the Presiding Offi- clude the following: cer is required by § 962.20 to render, and (a) The words ‘‘Petition for Hearing includes a revised initial decision Under the Program Fraud Civil Rem- issued following a remand. edies Act,’’ or other words reasonably (d) Investigating Official refers to the identifying it as such; Inspector General of the United States (b) The name of the Respondent as Postal Service or any designee within well as his or her work and home ad- the Office of the Inspector General. dresses, and work and home telephone (e) Judicial Officer refers to the Judi- numbers; or other address and tele- cial Officer or Acting Judicial Officer phone number where the Respondent of the United States Postal Service or may be contacted about the hearing for purposes other than specified in proceedings; § 962.21 any designee within the Judi- (c) A statement of the date the Re- cial Officer Department. spondent received the Complaint issued (f) Party refers to the Postal Service by the Reviewing Official; (d) A statement indicating whether or the Respondent. the Respondent requests an oral hear- (g) Person refers to any individual, ing or a decision on the record; partnership, corporation, association, (e) If the Respondent requests an oral or private organization. hearing, a statement proposing a city (h) Postmaster General refers to the for the hearing site, with justification Postmaster General of the United for holding the hearing in that city, as States or his designee. well as recommended dates for the (i) Presiding Officer refers to an Ad- hearing; and ministrative Law Judge designated by (f) A statement admitting or denying the Chief Administrative Law Judge to each of the allegations of liability conduct a hearing authorized by 31 made in the Complaint, and stating U.S.C. 3803. any defense on which the Respondent (j) Recorder refers to the Recorder of intends to rely. the United States Postal Service, 2101 Wilson Boulevard, Suite 600, Arlington, § 962.4 Referral of complaint. VA 22201–3078. (a) If the Respondent fails to request (k) Representative refers to an attor- a hearing within the specified period, ney or other advocate. the Reviewing Official shall transmit

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the Complaint to the Judicial Officer (2) The legal authority and jurisdic- for referral to a Presiding Officer, who tion under which the hearing is to be shall issue an initial decision based held; upon the information contained in the (3) The nature of the hearing; Complaint. (4) The matters of fact and law to be (b) If the Respondent files a Hearing decided; Petition, the Reviewing Official, upon (5) A description of the procedures receiving a copy of the Petition, shall governing the conduct of the hearing; promptly transmit to the Presiding Of- and ficer a copy of the Postal Service’s (6) Such other information as the Complaint. Presiding Officer deems appropriate.

§ 962.5 Scope of hearing; evidentiary § 962.7 Hearing location. standard. An oral hearing under this part shall (a) A hearing under this part shall be be held conducted by the Presiding Officer on (a) In the judicial district of the the record (1) to determine whether the United States in which the Respondent Respondent is liable under 31 U.S.C. resides or transacts business; or 3802, and (2) if so, to determine the (b) In the judicial district of the amount of any civil penalty or assess- United States in which the claim or ment to be imposed. statement upon which the allegation of (b) The Postal Service must prove its liability under 31 U.S.C. 3802 was made, case against a Respondent by a prepon- presented, or submitted; or derance of the evidence. (c) In such other place as may be agreed upon by the Respondent and the (c) The parties may offer at a hearing Presiding Officer. on the merits such relevant evidence as they deem appropriate and as would be § 962.8 Rights of parties. admissible under the generally accepted rules of evidence applied in the Any party to a hearing under this courts of the United States in nonjury part shall have the right trials, subject, however, to the sound (a) To be accompanied, represented, discretion of the Presiding Officer in and advised, by a representative of his supervising the extent and manner of own choosing; presentation of such evidence. In gen- (b) To participate in any prehearing eral, admissibility will hinge on rel- or post-hearing conference held by the Presiding Officer; evancy and materiality. However, relevant evidence may be excluded if its (c) To agree to stipulations of fact or law, which shall be made part of the probative value is substantially out- record; weighed by the danger of unfair preju- (d) To make opening and closing dice, or by considerations of undue statements at the hearing; delay, waste of time, or needless pres- (e) To present oral and documentary entation of cumulative evidence. evidence relevant to the issues at the § 962.6 Notice of hearing. hearing; (f) To submit rebuttal evidence; (a) Within a reasonable time after re- (g) To conduct such cross-examina- ceiving the Respondent’s Hearing Peti- tion as may be required for a full and tion and the Complaint, the Presiding true disclosure of the facts; and Officer shall serve, in accordance with (h) To submit written briefs, pro- § 962.23, upon the Respondent and the posed findings of fact, and proposed Reviewing Official, a Notice of Hearing conclusions of law. containing the information set forth in paragraph (b) of this section. § 962.9 Responsibilities and authority (b) The Notice of Hearing required by of presiding officer. paragraph (a) of this section must in- (a) The Presiding Officer shall conclude: duct a fair and impartial hearing, avoid (1) The tentative hearing site, date, delay, maintain order, and assure that and time; a record of the proceeding is made.

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(b) The Presiding Officer’s authority tice to all parties, the Presiding Officer includes, but is not limited to, the fol- may conduct, in person or by tele- lowing: phone, one or more prehearing con- (1) Establishing, upon adequate no- ference to discuss the following: tice to all parties, the date and time of (1) Simplification of the issues; the hearing, as well as, in accordance (2) The necessity or desirability of with § 962.7, selecting the hearing site; amendments to the pleadings, includ- (2) Holding conferences, by telephone ing the need for a more definite state- or in person, to identify or simplify the ment; issues, or to consider other matters (3) Stipulations or admissions of fact that may aid in the expeditious dis- or as to the contents and authenticity position of the proceeding; of documents; (3) Continuing or recessing the hear- (4) Limitation of the number of wit- ing in whole or in part for a reasonable nesses; period of time; (5) Exchange of witness lists, copies (4) Administering oaths and affirma- of prior statements of witnesses, and tions to witnesses; copies of hearing exhibits; (5) Issuing subpoenas, requiring the (6) Scheduling dates for the exchange attendance and testimony of witnesses of witness lists and of proposed exhib- and the production of all information, its; documents, reports, answers, records, (7) Discovery; accounts, papers, and other data and (8) Possible changes in the scheduled documentary evidence which the Pre- hearing date, time or site; and siding Officer considers relevant and (9) Any other matters related to the material to the hearing; proceeding. (6) Ruling on all offers, motions, re- (b) Within a reasonable time after quests by the parties, and other proce- the completion of a prehearing con- dural matters; ference, the Presiding Officer shall (7) Issuing any notices, orders, or issue an order detailing all matters memoranda to the parties concerning agreed upon by the parties, or ordered the proceedings; by the Presiding Officer, at such con- (8) Regulating the scope and timing ference. of discovery; (9) Regulating the course of the hear- § 962.11 Respondent access to informa- ing and the conduct of the parties and tion. their representatives; (a)(1) Except as provided in para- (10) Examining witnesses; graph (a)(2) of this section, the Re- (11) Receiving, ruling on, excluding, spondent, at any time after receiving or limiting evidence in order to assure the Notice of Hearing required by that relevant, reliable and probative § 962.6, may review, and upon payment evidence is elicited on the issues in dis- of a duplication fee established under pute, but irrelevant, immaterial or rep- § 265.8(c) of this title, may obtain a etitious evidence is excluded; copy of, all relevant and material docu- (12) Deciding cases, upon motion of a ments, transcripts, records, and other party, in whole or in part by summary materials, which relate to the allega- judgment where there is no disputed tions of liability, and upon which the issue of material fact; findings and conclusions of the Inves- (13) Establishing the record in the tigating Official under § 273.5 of this case; and title are based. (14) Issuing a written initial decision (2) The Respondent is not entitled to containing findings of fact, conclusions review or obtain a copy of any docu- of law, and determinations with re- ment, transcript, record, or other ma- spect to whether a penalty or assess- terial which is privileged under Federal ment should be imposed, and if so, the law. amount of such penalty or assessment. (b) At any time after receiving the Notice of Hearing required by § 962.6, § 962.10 Prehearing conferences. the Respondent shall be entitled to ob- (a) At a reasonable time in advance tain all exculpatory information in the of the hearing, and with adequate no- possession of the Investigating Official

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or the Reviewing Official relating to the hearing. In such instances, how- the allegations or liability under 31 ever, the deposition may be used to U.S.C. 3802. Paragraph (a)(2) of this sec- contradict or impeach the testimony of tion does not apply to any document, the witness given at the hearing. In transcript, record, or other material, cases submitted for a decision on the or any portion thereof, in which such record, the Presiding Officer may, in exculpatory information is contained. his discretion, receive depositions as (c) Requests to review or copy mate- evidence in supplementation of that rial under this section must be directed record. to the Reviewing Official who must re- (c) Interrogatories to parties. After the spond within a reasonable time. issuance of a Notice of Hearing described in § 962.6, a party may serve on § 962.12 Depositions; interrogatories; the other party written interrogatories admission of facts; production and inspection of documents. to be answered separately in writing, signed under oath and returned within (a) General Policy and protective or- 30 days. Upon timely objection by the ders. The parties are encouraged to en- party, the Presiding Officer will deter- gage in voluntary discovery proce- mine the extent to which the interrog- dures. In connection with any dis- atories will be permitted. covery procedure permitted under this (d) Admission of facts. After the part, the Presiding Officer may issue issuance of a Notice of Hearing de- any order which justice requires to proscribed in § 962.6, a party may serve tect a party or person from annoyance, upon the other party a request for the embarrassment, oppression, or undue admission of specified facts. Within 30 burden or expense. Such orders may in- days after service, the party served clude limitations on the scope, method, shall answer each requested fact or file time and place for discovery, and provi- objections thereto. The factual propo- sions for protecting the secrecy of con- sitions set out in the request shall be fidential information or documents. deemed admitted upon the failure of a Each party shall bear its own expenses party to respond to the request for ad- relating to discovery. mission. (b) Depositions. (1) After the issuance of a Notice of Hearing described in (e) Production and inspection of docu- § 962.6, the parties may mutually agree ments. Upon motion of any party show- to, or the Presiding Officer may, upon ing good cause therefor, and upon no- application of either party and for good tice, the Presiding Officer may order cause shown, order the taking of testi- the other party to produce and permit mony of any person by deposition upon the inspection and copying or oral examination or written interrog- photographing of any designated docu- atories before any officer authorized to ments or objects, not privileged, spe- administer oaths at the place of exam- cifically identified, and their relevance ination, for use as evidence or for pur- and materiality to the cause or causes poses of discovery. The application for in issue explained, which are reason- order shall specify whether the purpose ably calculated to lead to the discovery of the deposition is discovery or for use or admissible evidence. If the parties as evidence. cannot themselves agree thereon, the (2) The time, place, and manner of Presiding Officer shall specify just taking depositions shall be as mutually terms and conditions in making the in- agreed by the parties, or failing such spection and taking the copies and pho- agreement, governed by order of the tographs. Presiding Officer. (f) Limitations. Under no cir- (3) No testimony taken by deposi- cumstances may a discovery procedure tions shall be considered as part of the be used to reach evidence in the hearing unless and (1) Documents, transcripts, records, until such testimony is offered and re- or other material which a person is not ceived in evidence at such hearing. entitled to review pursuant to § 962.11; Depositions will not ordinarily be re- (2) The notice sent to the Attorney ceived in evidence if the deponent is General from the Reviewing Official present and can testify personally at under § 273.6 of this title; or

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(3) Other documents which are privi- may (1) quash or modify the subpoena leged under Federal law. if it is unreasonable and oppressive or [52 FR 12904, Apr. 20, 1987, as amended at 67 for other good cause shown, or (2) re- FR 62179, Oct. 4, 2002] quire the person in whose behalf the subpoena was issued to advance the § 962.13 Subpoenas. reasonable cost of producing subpoe- (a) General. Upon written request of naed books and papers. Where cir- either party filed with the Recorder or cumstances require, the Presiding Offi- on his own initiative, the Presiding Of- cer may act upon such a request at any ficer may issue a subpoena requiring: time after a copy has been served upon (1) Testimony at a deposition. The de- the opposing party. posing of a witness in the city or coun- (e) Form; issuance. (1) Every subpoena ty where he resides or is employed or shall state the title of the proceeding, transacts his business in person, or at shall cite 31 U.S.C. 3804(b) as the au- another location convenient for him thority under which it is issued, and that is specifically determined by the shall command each person to whom it Presiding Officer; is directed to attend and give testi- (2) Testimony at a hearing. The attendance of a witness for the purpose of mony, and if appropriate, to produce taking testimony at a hearing; and specified books and papers at a time (3) Production of books and papers. In and place therein specified. In issuing a addition to paragraphs (a)(1) and (a)(2) subpoena to a requesting party, the of this section, the production by the Presiding Officer shall sign the sub- witness at the deposition or hearing of poena and may, in his discretion, enter books and papers designated in the sub- the name of the witness and otherwise poena. leave it blank. The party to whom the (b) Voluntary cooperation. Each party subpoena is issued shall complete the is expected (1) to cooperate and make subpoena before service. available witnesses and evidence under (2) Where the witness is located in a its control as requested by the other foreign country, a letter rogatory or party, without issuance of a subpoena, subpoena may be issued and served and (2) to secure voluntary attendance under the circumstances and in the of desired third-party books, papers, manner provided in 28 U.S.C. 1781–1784. documents, or other tangible things (f) Service. (1) The party requesting whenever possible. issuance of a subpoena shall arrange (c) Requests for subpoenas. (1) A re- for service. quest for a subpoena shall normally be filed at least: (2) A subpoena requiring the attend- (i) 15 days before a scheduled deposi- ance of a witness at a deposition or tion where the attendance of a witness hearing may be served at any place. A at a deposition is sought; subpoena may be served by a United (ii) 30 days before a scheduled hearing States marshal or deputy marshal, or where the attendance of a witness at a by any other person who is not a party hearing is sought. and not less than 18 years of age. Serv- (2) A request for a subpoena shall ice of a subpoena upon a person named state the reasonable scope and general therein shall be made by personally de- relevance to the case of the testimony livering a copy to that person and ten- and of any books, papers, documents, dering the fees for one day’s attend- or other tangible things sought. ance and the mileage provided by 28 (3) The Presiding Officer, in his dis- U.S.C. 1821 or other applicable law. cretion, may honor requests for sub- (3) The party at whose instance a poenas not made within the time limi- subpoena is issued shall be responsible tations specified in this paragraph. for the payment of fees and mileage of (d) Requests to quash or modify. Upon the witness and of the officer who written request by the person subpoe- serves the subpoena. The failure to naed or by a party, made within 10 days after service but in any event not later make payment of such charges on de- than the time specified in the subpoena mand may be deemed by the Presiding for compliance, the Presiding Officer Officer as sufficient ground for striking

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the testimony of the witness and the (4) Strike any part of the pleadings evidence the witness has produced. or other submissions of the party fail- [52 FR 12904, Apr. 20, 1987, as amended at 67 ing to comply with such request. FR 62179, Oct. 4, 2002] (d) Failure to prosecute or defend. If a party fails to prosecute or defend an § 962.14 Enforcement of subpoenas. action under this part commenced by In the case of contumacy or refusal service of a Complaint, the Presiding to obey a subpoena issued pursuant to Officer may dismiss the action or enter §§ 962.9(b)(5) and 962.13, the district an order of default. courts of the United States have juris- (e) Failure to make timely filing. diction to issue an appropriate order The Presiding Officer may refuse to for the enforcement of such subpoena. consider any motion or other pleading, Any failure to obey such order of the report, or response which is not filed in court may be punishable as contempt. a timely fashion. In any case in which the Postal Service seeks the enforcement of a subpoena § 962.16 Disqualification of reviewing under this section, the Postal Service official or presiding official. shall request the Attorney General to If a Respondent believes, in good petition the district court for the dis- faith, that the Reviewing Official or trict in which a hearing under this part Presiding Officer should be disqualified is being conducted or in which the person receiving the subpoena resides or because of personal bias, or other rea- conducts business to issue such an son, the Respondent may file a timely order. and sufficient affidavit alleging such belief with supporting evidence. If the § 962.15 Sanctions. Presiding Officer finds that such alle- (a) The Presiding Officer may sanc- gations concerning the Reviewing Offi- tion a person, including any party or cial are meritorious, he may direct the representative, for Reviewing Official to disqualify him- (1) Failing to comply with a lawful self and request the appointment of a order or prescribed procedure; new Reviewing Official. Where a Re- (2) Failing to prosecute or defend an spondent seeks the disqualification of a action; or Presiding Officer, such Presiding Offi- (3) Engaging in other misconduct cer, may, in his discretion, disqualify that interferes with the speedy, or- himself at any time during the pro- derly, or fair conduct of the hearing. ceeding. In the event a Reviewing Offi- (b) Any such sanction, including but cial or Presiding Officer withdraws not limited to those listed in para- from a hearing, the proceeding shall be graphs (c), (d), and (e) of this section, stayed until the assignment of a new shall reasonably relate to the severity Reviewing Official or Presiding Officer. and nature of the failure or misconduct. § 962.17 Ex parte communications. (c) Failure to comply with an order. Communications between a Presiding When a party fails to comply with an Officer and a party shall not be made order, including an order for taking a on any matter in issue unless on notice deposition, the production of evidence and opportunity for all parties to par- within the party’s control, or a request ticipate. This prohibition does not for admission, the Presiding Officer apply to procedural matters. A memo- may: randum of any communication between (1) Draw an inference in favor of the the Presiding Officer and a party shall requesting party with regard to the information sought; be transmitted by the Presiding Officer (2) Prohibit such party from intro- to all parties. ducing evidence concerning, or other- § 962.18 Post-hearing briefs. wise relying upon, testimony relating to the information sought; Post-hearing briefs and reply briefs (3) Permit the requesting party to in- may be submitted upon such terms as troduce secondary evidence concerning established by the Presiding Officer at the information sought; and the conclusion of the hearing.

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§ 962.19 Transcript of proceedings. a response to the Respondent’s speci- Testimony and argument at hearings fied exceptions to the Presiding Offi- shall be reported verbatim, unless the cer’s initial decision. (b) (1) Review by the Presiding Officer orders otherwise. Form of review. Judicial Officer will be based entirely Transcripts or copies of the pro- on the record and written submissions. ceedings may be obtained by the par- (2) The Judicial Officer may affirm, ties at such rates as may be fixed by reduce, reverse, or remand any penalty contract between the reporter and the or assessment determined by the Pre- Postal Service. siding Officer. § 962.20 Initial decision. (3) The Judicial Officer shall not consider any objection that was not raised (a) After the conclusion of the hear- in the hearing unless the interested ing, and the receipt of briefs, if any, party demonstrates that the failure to from the parties, the Presiding Officer raise the objection before the Presiding shall issue a written initial decision, Officer was caused by extraordinary including his or her findings and deter- circumstances. minations. Such decision shall include (4) If any party demonstrates to the the findings of fact and conclusions of satisfaction of the Judicial Officer that law which the Presiding Officer relied additional evidence not presented at upon in determining whether the Re- the hearing is material and that there spondent is liable under 31 U.S.C. 3802, were reasonable grounds for the failure and, if liability is found, shall set forth to present such evidence, the Judicial the amount of any penalties and as- Officer shall remand the matter to the sessments imposed. Presiding Officer for consideration of (b) The Presiding Officer shall such additional evidence. promptly send to each party a copy of (c) Decision of judicial officer. (1) The his or her initial decision, and a state- Judicial Officer shall promptly serve ment describing the right of any person each party to the appeal with a copy of determined to be liable under 31 U.S.C. his decision and a statement describing 3802, to appeal, in accordance with the right to judicial review under 31 § 962.21, the decision of the Presiding U.S.C. 3805 of any Respondent deter- Officer to the Judicial Officer. mined to be liable under 31 U.S.C. 3802. (c) Unless the Respondent appeals the (2) The decision of the Judicial Offi- Presiding Officer’s initial decision, cer constitutes final agency action and such decision, including the findings becomes final and binding on the par- and determinations, is final. ties 60 days after it is issued unless a § 962.21 Appeal of initial decision to petition for judicial review is filed. judicial officer. [52 FR 12904, Apr. 20, 1987, as amended at 67 (a) Notice of appeal and supporting FR 62179, Oct. 4, 2002] brief. (1) A Respondent may appeal an adverse initial decision by filing, with- § 962.22 Form and filing of documents. in 30 days after the Presiding Officer (a) All pleadings and documents re- issues an initial decision, a Notice of quired under this part must be filed Appeal with the Recorder. The Judicial using the Judicial Officer electronic Officer may extend the filing period if filing system unless the presiding offi- the Respondent files a request for an cer permits otherwise. The Judicial Of- extension within the initial 30-day pe- ficer electronic filing system Web site riod and demonstrates good cause for is accessible 24 hours a day at https:// such extension. uspsjoe.justware.com/justiceweb. Every (2) The Respondent’s Notice of Ap- pleading filed in a proceeding under peal must be accompanied by a written this part must: brief specifying the Respondent’s ex- (1) Contain a caption setting forth ceptions, and any reasons for such ex- the title of the action, the docket num- ceptions, to the Presiding Officer’s ini- ber (after assignment by the Recorder), tial decision. and a designation of the document (3) Within 30 days of receiving the (e.g., ‘‘Motion to Quash Subpoena’’); Respondent’s brief, the Reviewing Offi- (2) Contain the name, address, and cial may file with the Judicial Officer telephone number of the party or other

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person on whose behalf the paper was (b) When the applicable period of filed, or the name, address and tele- time is less than seven days, inter- phone number of the representative mediate Saturdays, Sundays, and legal who prepared such paper; and holidays observed by the Federal Gov- (3) Be signed by the party or other ernment shall be excluded from the person submitting the document, or by computation. such party’s or person’s representative. (b) Documents submitted using the § 962.25 Continuances and extensions. electronic filing system are considered Continuances and extensions may be filed as of the date/time (Eastern Time) granted under these rules for good reflected in the system. Documents cause shown. mailed to the Recorder are considered filed on the date mailed as evidenced § 962.26 Settlement. by a United States Postal Service post- (a) Either party may make offers of mark. Filings by any other means are settlement or proposals of adjustment considered filed upon receipt by the at any time. Recorder of a complete copy of the fil- (b) The Reviewing Official has the ex- ing during normal business hours. Nor- clusive authority to compromise or mal business hours are between 8:45 settle any allegations or determina- a.m. and 4:45 p.m. (Eastern Time), Mon- tions of liability under 31 U.S.C. 3802 day through Friday except holidays. without the consent of the Presiding (c) Pleadings or document transmit- Officer, except during the pendency of tals to, or communications with, the an appeal to the appropriate United Postal Service, other than to the Re- States district court pursuant to 31 corder under paragraph (b) of this sec- U.S.C. 3805 or during the pendency of tion, shall be made through the Re- an action to collect any penalties or viewing Official or designated Postal assessments pursuant to 31 U.S.C. 3806. Service attorney. If a notice of appear- (c) The Attorney General has the ex- ance by a representative is filed on be- clusive authority to compromise or half of a Respondent, pleadings or doc- settle any penalty or assessment the ument transmittals to, or communica- determination of which is the subject tions with, the Respondent shall be of a pending petition for judicial re- made through his representative. view, or a pending action to recover [52 FR 12904, Apr. 20, 1987, as amended at 63 such penalty or assessment. FR 66053, Dec. 1, 1998; 81 FR 40194, June 21, (d) The Reviewing Official may rec- 2016] ommend settlement terms to the At- torney General, as appropriate. § 962.23 Service. If both parties are participating in [59 FR 51860, Oct. 13, 1994] the electronic filing system, separate service upon the opposing party is not § 962.27 Limitations. required. Otherwise, documents shall A hearing under this part concerning be served personally or by mail on the a claim or statement allegedly made, opposing party, noting on the docu- presented, or submitted in violation of ment filed, or on the transmitting let- 31 U.S.C. 3802 shall be commenced with- ter, that a copy has been so furnished. in six years after the date on which such claim or statement is made, pre- [81 FR 40194, June 21, 2016] sented, or submitted. § 962.24 Computation of time. (a) In computing any period of time PART 963—RULES OF PRACTICE IN provided for by this part, or any order PROCEEDINGS RELATIVE TO VIO- issued pursuant to this part, the time LATIONS OF THE PANDERING AD- begins with the day following the act, VERTISEMENTS STATUTE, 39 U.S.C. event, or default, and includes the last 3008 day of the period, unless it is a Satur- day, Sunday, or legal holiday observed Sec. by the Federal Government, in which 963.1 Authority for the rules. event it includes the next business day. 963.2 Scope of the rules.

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963.3 Petition; notice of hearing; answer; fil- 39 U.S.C 3008(d) may submit to the ing and copies of documents; summary Manager a petition for hearing on the judgment. alleged violation. The petition must be 963.4 Presiding Officer. 963.5 Appearances. in writing, signed by the petitioner or 963.6 Computation of time. his or her attorney, and filed with the 963.7 Location of hearing. Manager on or before the 15th day after 963.8 Change of place of hearing. receipt of the complaint. The petition 963.9 Election as to hearing. shall state the reasons why the peti- 963.10 Continuances and extensions. tioner believes the complaint to be er- 963.11 Default. 963.12 Settlement agreements. roneous. No petition received after the 963.13 Subpoenas and witness fees not au- 15th day will be considered to have thorized. been filed on time, unless it was duly 963.14 Discovery. sent to the Manager via certified mail, 963.15 Evidence. deposited in the U.S. mail on or before 963.16 Transcript. 963.17 Proposed findings of fact and conclu- the 15th day. The Manager will forward sions of law. each timely petition to the Recorder 963.18 Initial decision. through the Judicial Officer Depart- 963.19 Appeal. ment electronic filing system at https:// 963.20 Final agency decision. uspsjoe.justware.com/justiceweb. 963.21 Official record. (b) Notice of hearing. Upon receiving a 963.22 Public information. petition, the Recorder shall schedule a AUTHORITY: 39 U.S.C. 204, 401, 3008. hearing for a date not later than 30 SOURCE: 52 FR 18912, May 20, 1987, unless days after the date of receipt, issue and otherwise noted. send a notice of hearing to the parties, and send a copy of the petition to the § 963.1 Authority for the rules. General Counsel of the U.S. Postal These rules of practice are issued by Service. the Judicial Officer of the U.S. Postal (c) Answer. The General Counsel shall Service pursuant to authority dele- file with the Recorder an answer to the gated by the Postmaster General (39 petition within 15 days after the date CFR 226.2(e)(1)). of receiving a copy thereof. A certified [52 FR 18912, May 20, 1987, as amended at 59 copy of the material documents from FR 10751, Mar. 8, 1994] the Manager’s case file (i.e., of the PS Forms 1500, Application for Listing and/ § 963.2 Scope of the rules. or Prohibitory Order, 2152, Prohibitory These rules of practice are applicable Order, and 2153, Complaint, underlying to cases in which the Prohibitory Order mail pieces, and pertinent return re- Processing Center Manager (herein- ceipts) shall be appended to the answer. after, ‘‘Manager’’) has issued a com- (d) Filing. All documents required plaint, pursuant to 39 U.S.C. 3008(d), al- under this part must be filed using the leging violation of a prohibitory order, electronic filing system (https:// and in which the alleged violator has uspsjoe.justware.com/justiceweb) unless petitioned for a hearing in the matter. the presiding officer permits otherwise. As provided in 39 U.S.C. 3008(h), sub- Documents submitted using the elec- chapter II of chapter 5 (relating to ad- tronic filing system are considered ministrative procedure) and chapter 7 filed as of the date/time (Eastern Time) (relating to judicial review) of part I of reflected in the system. Documents title 5, U.S.C., do not apply to the hear- mailed to the Recorder are considered ings authorized by 39 U.S.C. 3008(d). filed on the date mailed as evidenced by a United States Postal Service post- [52 FR 18912, May 20, 1987, as amended at 59 FR 10751, Mar. 8, 1994, 62 FR 4459, Jan. 30, mark. Filings by any other means are 1997] considered filed upon receipt by the Recorder of a complete copy of the fil- § 963.3 Petition; notice of hearing; an- ing during normal business hours. Nor- swer; filing and copies of docu- mal business hours are between 8:45 ments; summary judgment. a.m. and 4:45 p.m. (Eastern Time), Mon- (a) Petition. Anyone against whom a day through Friday except holidays. If complaint has been issued pursuant to both parties are participating in the

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electronic filing system, separate serv- by an attorney, all pleadings and other ice upon the opposing party is not re- papers to be served on petitioner after quired. Otherwise, documents shall be entry of the attorney’s appearance served personally or by mail on the op- shall be mailed to the attorney. A peti- posing party, noting on the document tioner must promptly file notice of any filed, or on the transmitting letter, change of attorney. that a copy has been so furnished. The (b) Postal Service. The Postal Service Recorder shall maintain a docket and will be represented by its General the files in all proceedings. Counsel or any attorney designated by (e) Summary Judgment. Upon motion the General Counsel. of either the General Counsel or the petitioner, or on his or her own initia- § 963.6 Computation of time. tive, the presiding officer may find A designated period of time under that the petition and answer present no these rules means calendar days, ex- genuine and material issues of fact re- cludes the day the period begins, and quiring an evidentiary hearing, and includes the last day of the period un- thereupon may render an initial deci- less the last day is a Saturday, Sunday, sion upholding or dismissing the com- or legal holiday, in which case the pe- plaint. The initial decision shall be- riod runs until the close of business on come the final agency decision if a the next business day. timely appeal is not taken. [52 FR 18912, May 20, 1987; 52 FR 20599, June § 963.7 Location of hearing. 2, 1987, as amended at 59 FR 10752, Mar. 8, Hearings are held at 2101 Wilson Bou- 1994; 62 FR 4459, Jan. 30, 1997; 63 FR 66053, levard, Suite 600, Arlington, VA 22201– Dec. 1, 1998; 81 FR 40194, June 21, 2016] 3078, or other locations designated by the presiding officer. § 963.4 Presiding Officer. (a) The presiding officer shall be an [63 FR 66053, Dec. 1, 1998] Administrative Law Judge or an Ad- § 963.8 Change of place of hearing. ministrative Judge qualified in accordance with law. The Judicial Officer as- Not later than the date fixed for the signs cases under this part. Judicial Of- filing of the answer, a party may file a ficer includes Associate Judicial Offi- request that a hearing be held to re- cer upon delegation thereto. The Judi- ceive evidence in his or her behalf at a cial Officer may, on his or her own ini- place other than that designated for tiative or for good cause found, preside hearing in the notice. The party shall at the reception of evidence. support his or her request with a state- (b) The presiding officer has author- ment outlining: ity to: (a) The evidence to be offered in such (1) Take such action as may be nec- place; essary properly to preside over the pro- (b) The names and addresses of the ceeding and render decision therein; witnesses who will testify; (2) Render an initial decision, if the (c) The reasons why such evidence presiding officer is not the Judicial Of- cannot be produced at Arlington, VA. ficer, which becomes the final agency The presiding officer shall consider the decision unless a timely appeal is convenience and necessity of the par- taken; the Judicial Officer may issue a ties and the relevance of the evidence tentative or a final decision. to be offered. [52 FR 18912, May 20, 1987, as amended at 62 [52 FR 18912, May 20, 1987, as amended at 62 FR 4459, Jan. 30, 1997] FR 4459, Jan. 30, 1997; 63 FR 66053, Dec. 1, 1998] § 963.5 Appearances. (a) Petitioner. A petitioner may ap- § 963.9 Election as to hearing. pear and be heard in person or by at- If both parties elect, an oral hearing torney. An attorney may practice be- may be waived and the matter sub- fore the Postal Service in accordance mitted for decision on the basis of the with applicable rules issued by the Ju- petition and answer, and of any docu- dicial Officer (see Part 951 of this chap- mentary evidence or briefs requested ter). When a petitioner is represented by the presiding officer. The written

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election to waive oral hearing must be § 963.15 Evidence. received by the Recorder no later than (a) In general, admissibility will 10 days prior to the scheduled hearing hinge on relevancy and materiality. date. However, relevant evidence may be ex- § 963.10 Continuances and extensions. cluded if its probative value is substantially outweighed by the danger of un- Continuances and extensions will be fair prejudice, or by considerations of granted by the presiding officer for undue delay, waste of time, or needless good cause shown. presentation of cumulative evidence. (b) Testimony shall be given under § 963.11 Default. oath or affirmation and witnesses are If a petitioner, without notice or subject to cross-examination. cause satisfactory to the presiding offi- (c) Agreed statements of fact are en- cer, fails to appear at the hearing or couraged and may be received in evi- comply with any of the provisions of dence. these rules or an order issued by the presiding officer, the petitioner may be § 963.16 Transcript. deemed to have abandoned his or her Testimony and argument at hearings petition and to have acquiesced in the shall be reported verbatim, unless the allegations of the complaint. The pre- presiding officer otherwise orders. siding officer thereupon may find the Transcripts or copies of the pro- petitioner to be in default and refer the ceedings are supplied to the parties at matter to the Judicial Officer for dis- such rate as may be fixed by contract missal of the petition. between the reporter and Postal Serv- [52 FR 18912, May 20, 1987, as amended at 62 ice. Any party desiring a copy of the FR 4459, Jan. 30, 1997] transcript shall order it from the contract reporter in a timely manner to § 963.12 Settlement agreements. avoid delay in filing briefs. These rules do not preclude the dis- § 963.17 Proposed findings of fact and position of any matter by agreement conclusions of law. between the parties at any stage of the proceeding. (a) Each party who participates in the hearing may, unless the presiding § 963.13 Subpoenas and witness fees officer orders otherwise, submit pro- not authorized. posed findings of fact, conclusions of The Postal Service is not authorized law, orders, and supporting reasons, ei- to issue subpoenas requiring the at- ther in writing or orally at the discre- tendance or testimony of witnesses, tion of the presiding officer. Unless nor to pay fees and expenses for a peti- given orally, the date set for filing of tioner’s witnesses or for depositions re- proposed findings of fact, conclusions quested by a petitioner. of law, orders, and supporting reasons shall be within 15 days after the deliv- § 963.14 Discovery. ery of the official transcript to the Re- corder, who shall notify both parties of Discovery is to be conducted on a the date of its receipt. The filing date voluntary basis to the extent possible. for proposed findings of fact, conclu- The presiding officer may, upon appli- sions of law, orders, and supporting cation of either party, order such dis- reasons shall be the same for both par- covery as he or she deems reasonable ties. If not submitted by such date, un- and necessary. Discovery may include less extension of time for the filing one or more of the following: produc- thereof is granted, they will not be in- tion of documents, requests for admis- cluded in the record or given consider- sions, interrogatories, depositions, and ation. witness lists. The presiding officer will (b) Except when presented orally be- establish the terms upon which re- fore the close of the hearing, proposed quested discovery will be allowed. findings of fact shall be set forth in se- [52 FR 18912, May 20, 1987, as amended at 62 rially numbered paragraphs and shall FR 4459, Jan. 30, 1997] state with particularity all evidentiary

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facts in the record with appropriate ci- PART 964—RULES OF PRACTICE tations to the transcript or exhibits GOVERNING DISPOSITION OF supporting the proposed findings. Each MAIL WITHHELD FROM DELIVERY proposed conclusion shall be stated separately. PURSUANT TO 39 U.S.C. 3003, 3004 [52 FR 18912, May 20, 1987; 52 FR 20599, June 2, 1987] Sec. 964.1 Authority for rules. § 963.18 Initial decision. 964.2 Scope of rules. Unless given orally at the conclusion 964.3 Customer petitions; notice of hearing; of the hearing, the presiding officer answer; summary judgment. shall render an initial decision as expe- 964.4 Hearings. ditiously as practicable following the 964.5 Election as to hearing. conclusion of the hearing and the re- 964.6 Default. ceipt of the proposed findings and con- 964.7 Presiding officers. 964.8 Subpoenas and witness fees not au- clusions, if any. The initial decision be- thorized. comes the final agency decision if a 964.9 Discovery; interrogatories; admission timely appeal is not taken. of facts; production; and inspection of documents. § 963.19 Appeal. 964.10 Evidence. Either party may file exceptions in a 964.11 Transcript. brief on appeal to the Judicial Officer 964.12 Computation of time. within 15 days after receipt of the ini- 964.13 Continuances and extensions. 964.14 Proposed findings of fact and conclu- tial or tentative decision unless addi- sions of law. tional time is granted. A reply brief 964.15 Decisions. may be filed within 15 days after the 964.16 Appeal. receipt of the appeal brief by the op- 964.17 Final agency decision. posing party. The Judicial Officer has 964.18 Compromise and informal disposition. all powers of a presiding officer and is 964.19 Orders. authorized to decide all issues de novo. 964.20 Modification or revocation of orders. 964.21 Official record. § 963.20 Final agency decision. 964.22 Public information. 964.23 Ex Parte communications. The Judicial Officer, or by delegation the Associate Judicial Officer, renders AUTHORITY: 39 U.S.C. 204, 401, 3003, 3004; 5 the final agency decision which will be U.S.C. 554. served upon the parties. If the decision SOURCE: 52 FR 36763, Oct. 1, 1987, unless is that the Postal Service’s prohibitory otherwise noted. order was violated, the Recorder shall provide a certified copy of the record § 964.1 Authority for rules. to the General Counsel for use in seek- These rules of practice are issued by ing court enforcement of the order. the Judicial Officer of the United States Postal Service pursuant to au- § 963.21 Official record. thority delegated by the Postmaster The transcript of testimony together General (39 CFR 224.1(c)(4)). with all pleadings, orders, exhibits, [52 FR 36763, Oct. 1, 1987, as amended at 67 FR briefs, and other documents filed in the 62179, Oct. 4, 2002] proceeding constitute the official record of the proceeding. § 964.2 Scope of rules. § 963.22 Public information. The rules in this part provide for administrative review of cases in which The Librarian of the Postal Service the Chief Postal Inspector or his dele- maintains for public inspection in the gate, acting pursuant to 39 U.S.C. Library copies of all initial, tentative, 3003(a), has withheld from delivery and final agency decisions and orders. mail which he believes is involved in a The Recorder maintains the complete scheme described in section 3003(a), and official record of every proceeding. cases in which the Chief Postal Inspec- [52 FR 18912, May 20, 1987, as amended at 63 tor or his delegate, acting pursuant to FR 66053, Dec. 1, 1998] 39 U.S.C. 3004, determines that letters

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or parcels sent in the mail are ad- Chief Postal Inspector or his or her dressed to places not the residence or designee of the U.S. Postal Service. regular business address of the person (c) Answer. The Chief Postal Inspec- for whom they are intended to enable tor or his or her designee of the Postal the person to escape identification. Service shall file an Answer to the Pe- tition within 10 days of receipt of the [52 FR 36763, Oct. 1, 1987, as amended at 67 FR 62179, Oct. 4, 2002] Petition from the Recorder. (d) Summary judgment. Upon motion § 964.3 Customer petitions; notice of of either the Chief Postal Inspector or hearing; answer; summary judg- his or her designee or the Petitioner, or ment. upon his own initiative, the presiding (a) Petition. Any addressee who re- officer may find that the Petition and ceives notice from the Chief Postal In- Answer present no material issues of spector or his delegate that his mail fact requiring an evidentiary hearing has been withheld pursuant to 39 U.S.C. and thereupon may render an initial 3003(a) or 3004 may oppose such action decision granting or dismissing the Pe- by filing with the Judicial Officer a tition. The initial decision shall be- written Petition stating the reasons come the final agency decision if a for his or her opposition. The Petition, timely appeal is not taken pursuant to signed by the Petitioner or his or her § 964.16 of this part. attorney, shall be filed via the Judicial (e) Filing and service. All documents Officer Electronic filing system at required under this part must be filed https://uspsjoe.justware.com/justiceweb or using the electronic filing system un- via certified mail to the Recorder, Ju- less the presiding officer permits other- dicial Officer Department, United wise. Documents submitted using the States Postal Service, 2101 Wilson Bou- electronic filing system are considered levard, Suite 600, Arlington, VA 22201– filed as of the date/time (Eastern Time) 3078. The Petition must be filed within reflected in the system. Documents 14 days of the date upon which the Pe- mailed to the Recorder are considered titioner received the notice. The fail- filed on the date mailed as evidenced ure of an addressee who has received by a United States Postal Service post- notice of withheld mail to file a Peti- mark. Filings by any other means are tion opposing such action with the Ju- considered filed upon receipt by the dicial Officer shall constitute a waiver Recorder of a complete copy of the fil- of hearing and further procedural steps ing during normal business hours. Nor- by the addressee. The Chief Postal In- mal business hours are between 8:45 spector or his or her designee of the a.m. and 4:45 p.m. (Eastern Time), Mon- Postal Service shall thereupon file the day through Friday except holidays. If matter with the Judicial Officer for both parties are participating in the issuance of a final order pursuant to electronic filing system, separate serv- § 964.19. Such referral shall contain a ice upon the opposing party is not re- statement of the basis for the deten- quired. Otherwise, documents shall be tion, evidence that the notice of the de- served personally or by mail on the op- tention and the addressee’s right to pe- posing party, noting on the document tition for review under this part were filed, or on the transmitting letter, served on the addressee in person or by that a copy has been so furnished. mailing a copy to the address to which [52 FR 36763, Oct. 1, 1987, as amended at 53 FR the detained mail is directed, the date 4849, Feb. 18, 1988; 63 FR 66053, Dec. 1, 1998; 71 of such service, and a copy of the pro- FR 53972, Sept. 13, 2006 ; 81 FR 40194, June 21, posed order sought by the Chief Postal 2016] Inspector or his or her designee. (b) Notice of hearing. On receipt of the § 964.4 Hearings. Petition, the Recorder shall schedule a Hearings are held at 2101 Wilson Bou- hearing on a date not later than 28 levard, Suite 600, Arlington, VA 22201– days after the date of receipt. A Notice 3078, or other locations designated by of Hearing shall be sent to the Peti- the presiding officer. Not later than 10 tioner. A copy of the Notice of Hearing days prior to the date fixed for the and the Petition shall be sent to the hearing, a party may file a request

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that a hearing be held to receive evi- (3) Rule upon offers of proof, admissi- dence in his behalf at a place other bility of evidence and matters of proce- than that designated for hearing in the dure; notice. He shall support his request (4) Order any pleadings amended with a statement outlining: upon motion of a party at any time (a) The evidence to be offered in such prior to the close of the hearing; place; (5) Maintain discipline and decorum (b) The names and addresses of the and exclude from the hearing any per- witnesses who will testify; and son acting in an indecorous manner; (c) The reasons why such evidence (6) Require the filing of briefs or cannot be produced at Arlington, VA. memoranda of law on any matter upon The presiding officer shall give con- which he is required to rule; sideration to the convenience and ne- (7) Order prehearing conferences for cessity of the parties and the relevance the purpose of the settlement or sim- of the evidence to be offered plification of issues by the parties or [52 FR 36763, Oct. 1, 1987, as amended at 63 FR for any other purpose he believes will 66053, Dec. 1, 1998] facilitate the processing of the proceeding; § 964.5 Election as to hearing. (8) Order the proceeding reopened at If both parties elect, they may waive any time prior to his decision for the an oral hearing and submit the matter receipt of additional evidence; for decision on the basis of the Petition (9) Render an initial decision, which and Answer, subject to the authority of becomes the final agency decision un- the presiding officer to require the par- less a timely appeal is taken: The Judi- ties to furnish such further evidence or cial Officer may issue a tentative or a such briefs as necessary. The request to final decision; waive oral hearing should be filed not (10) Rule upon applications and re- later than 10 days prior to the date set quests filed under § 964.9 of this part. for hearing. [52 FR 36763, Oct. 1, 1987, as amended at 81 FR § 964.6 Default. 40195, June 21, 2016] If a Petitioner fails to appear at the § 964.8 Subpoenas and witness fees not hearing without notice or without ade- authorized. quate cause the presiding officer may The Postal Service is not authorized issue an order dismissing the Petition to issue subpoenas requiring the at- and refer the matter to the Judicial Of- tendance or testimony of witnesses, ficer for issuance of the order provided nor to pay fees and expenses for a Peti- for under § 964.19. An order of dismissal tioner’s witnesses or for depositions re- issued under this section may be ap- quested by a Petitioner. pealed to the Judicial Officer within 10 days from the date of the order. § 964.9 Discovery; interrogatories; ad- [52 FR 36763, Oct. 1, 1987, as amended at 53 FR mission of facts; production and in- 4849, Feb. 18, 1988] spection of documents. (a) General policy and protective orders. § 964.7 Presiding officers. The parties are encouraged to engage (a) The presiding officer shall be an in voluntary discovery procedures. In Administrative Law Judge qualified in connection with any discovery proce- accordance with law or the Judicial Of- dure permitted under this part, the ficer. The Chief Administrative Law presiding officer may issue any order Judge shall assign cases. The Judicial which justice requires to protect a Officer may preside at the hearing if an party or person from annoyance, em- Administrative Law Judge is unavail- barrassment, oppression, or undue bur- able. den or expense. Such orders may in- (b) The presiding officer has author- clude limitations on the scope, method, ity to: time and place for discovery, and provi- (1) Administer oaths and affirma- sions for protecting confidential infor- tions; mation or documents from unwar- (2) Examine witnesses; ranted public disclosure. Each party

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shall bear its own expenses relating to a party fails to respond shall be deemed discovery. admitted. (b) Depositions. (1) After the issuance (e) Production and inspection of docu- of a notice of hearing described in ments. Upon motion of any party show- § 964.3 of this part, the parties may mu- ing good cause therefor, and upon no- tually agree to, or the presiding officer tice, the presiding officer may order may, upon application of either party the other party to produce and permit and for good cause shown, order the the inspection and copying or taking of testimony of any person by photographing of any designated docu- deposition upon oral examination or ments and or objects, provided that written interrogatories before any offi- such documents and objects are not cer authorized to administer oaths at privileged, their relevance to the cause the place of examination, for use as or causes in issue is explained, and evidence or for purposes of discovery. they are reasonably calculated to lead The application for order shall specify to the discovery of admissible evi- whether the purpose of the deposition dence. If the parties cannot themselves is discovery or for use as evidence, or agree thereon, the presiding officer both. shall specify the terms and conditions (2) The time, place, and manner of for making the inspection and taking taking depositions shall be as mutually the copies and photographs. agreed by the parties, or failing such agreement, governed by order of the § 964.10 Evidence. presiding officer. (a) In general, admissibility will (3) No testimony taken by deposi- hinge on relevancy and materiality. tions shall be considered as part of the However, relevant evidence may be ex- evidence in the hearing unless and cluded if its probative value is substan- until such testimony is offered and re- tially outweighed by the danger of un- ceived in evidence at such hearing. fair prejudice, or by considerations of Depositions will not ordinarily be re- undue delay, waste of time, or needless ceived in evidence if the deponent is presentation of cumulative evidence. present and can testify personally at (b) Testimony shall be given under the hearing. In such instances, how- oath or affirmation and witnesses shall ever, the deposition may be used to be subject to cross-examination. contradict or impeach the testimony of (c) Agreed statements of fact are en- the witness given at the hearing. In couraged and may be received in evi- cases submitted on the record, the pre- dence. siding officer may, in his discretion, receive depositions as evidence in sup- § 964.11 Transcript. plementation of the record. Testimony and argument at hearings (c) Interrogatories to parties. Not later shall be reported verbatim, unless the than 5 days after the filing of the An- presiding officer orders otherwise. swer described in § 964.3, a party may Transcripts or copies of the pro- serve on the other party written inter- ceedings are supplied to the parties at rogatories to be answered separately in such rate as may be fixed by contract writing, signed under oath and re- between the reporter and Postal Serv- turned within 10 days. Upon timely ob- ice. Any party desiring a copy of the jection by the party, the presiding offi- transcript shall order it from the con- cer will determine the extent to which tract reporter in a timely manner to the interrogatories will be permitted. avoid delay in filing briefs. (d) Admission of facts. Not later than 5 days after the filing of the Answer de- § 964.12 Computation of time. scribed in § 964.3, a party may serve A designated period of time under upon the other party a request for the these rules means calendar days, ex- admission of specified facts. Within 10 cludes the day the period begins, and days after receipt of the request for ad- includes the last day of the period un- missions, the party served shall admit less the last day is a Saturday, Sunday, or answer each specified fact or file ob- or legal holiday, in which case the pe- jections thereto. Any factual propo- riod runs until the close of business on sitions set out in the request to which the next business day.

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§ 964.13 Continuances and extensions. agency decision unless an appeal is Continuances and extensions will be taken in accordance with § 964.16. granted by the presiding officer for (b) Tentative or final decision by the good cause shown. Judicial Officer. When the Judicial Offi- cer presides at the hearing he shall § 964.14 Proposed findings of fact and issue a final or a tentative decision. conclusions of law. Such decision shall include findings (a) Each party to a proceeding, ex- and conclusions with the reasons there- cept one who fails to answer the Peti- for upon all the material issues of fact tion or, having answered, either fails to or law presented in the record, and the appear at the hearing or indicates in appropriate orders or denial thereof. the answer that he does not desire to The tentative decision shall become appear, may, unless at the discretion of the final agency decision unless excep- the presiding officer such is not appro- tions are filed in accordance with priate, submit proposed findings of § 964.16. fact, conclusions of law, orders and supporting reasons either in oral or § 964.16 Appeal. written form in the discretion of the (a) Either party may file exceptions presiding officer. The presiding officer in a brief on appeal to the Judicial Of- may also require parties to submit pro- ficer within 15 days after receipt of the posed findings of fact, conclusions of initial or tentative decision unless ad- law, orders, and supporting reasons. ditional time is granted. A reply brief Unless given orally, the date set for fil- may be filed within 15 days after re- ing of proposed findings of fact, conclu- ceipt of the appeal brief by the oppos- sions of law, orders and supporting rea- ing party. The Judicial Officer has all sons shall be within 15 days after the powers of a presiding officer and is au- delivery of the official transcript to thorized to decide all issues de novo. the Recorder who shall notify both par- (b) Briefs upon appeal or in support ties of the date of its receipt. The filing of exceptions to a tentative decision by date for proposed findings of fact, con- the Judicial Officer and replies thereto clusions of law, orders and supporting shall be filed in triplicate with the Re- reasons shall be the same for both par- corder and contain the following mat- ties. If not submitted by such date, un- ter in the order indicated: less extension of time for the filing (1) A subject index of the matters thereof is granted, they will not be in- presented, with page references; a table cluded in the record or given consider- of cases alphabetically arranged; a list ation. of statutes and texts cited with page (b) Except when presented orally be- references. fore the close of the hearing, proposed findings of fact shall be set forth in se- (2) A concise abstract or statement of rially numbered paragraphs and shall the case in briefs on appeal or in sup- state with particularity all evidentiary port of exceptions. facts in the record with appropriate ci- (3) Numbered exceptions to specific tations to the transcript or exhibits findings and conclusions of fact, con- supporting the proposed finding. Each clusions of law, or recommended orders proposed conclusion shall be separately of the presiding officer in briefs on ap- stated. peal or in support of exceptions. (4) A concise argument clearly set- § 964.15 Decisions. ting forth points of fact and of law re- (a) Initial decision by Administrative lied upon in support of or in opposition Law Judge. A written initial decision to each exception taken, together with shall be rendered by an Administrative specific references to the parts of the Law Judge with all due speed. The ini- record and the legal or other authori- tial decision shall include findings and ties relied upon. conclusions with the reasons therefor upon all the material issues of fact or § 964.17 Final agency decision. law presented in the record, and the ap- The Judicial Officer renders the final propriate orders or denial thereof. The agency decision and order which will be initial decision shall become the final served upon the parties and upon the

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postmaster at the office where the mail Library copies of all initial, tentative, at issue is being held. and final agency decisions and orders. The Recorder maintains the complete [52 FR 36763, Oct. 1, 1987, as amended at 53 FR 4849, Feb. 18, 1988] official record of every proceeding. [52 FR 36763, Oct. 1, 1987, as amended at 63 FR § 964.18 Compromise and informal dis- 66053, Dec. 1, 1998] position. Nothing in these rules precludes the § 964.23 Ex parte communications. compromise, settlement, and informal The provisions of 5 U.S.C. 551(14), disposition of proceedings initiated 556(d), and 557(d) prohibiting ex parte under these rules at any time prior to communications are made applicable the issuance of the final agency deci- to proceedings under these rules of sion. practice. § 964.19 Orders. If an order is issued by the Judicial PART 965—RULES OF PRACTICE IN Officer which prohibits delivery of mail PROCEEDINGS RELATIVE TO MAIL to a Petitioner it shall be incorporated DISPUTES in the record of the proceeding. The Recorder shall cause notice of the Sec. order to be published in the Postal Bul- 965.1 Authority for rules. letin and cause the order to be trans- 965.2 Scope of rules. mitted to such postmasters and other 965.3 Notice to parties. officers and employees of the Postal 965.4 Presiding officers. Service as may be required to place the 965.5 Initial submissions by parties. order into effect. 965.6 Comments by parties. 965.7 Default. [52 FR 36763, Oct. 1, 1987, as amended at 53 FR 965.8 Hearings. 4849, Feb. 18, 1988] 965.9 Evidence. 965.10 Transcript. § 964.20 Modification or revocation of 965.11 Initial decision. orders. 965.12 Appeal. A party against whom an order or or- 965.13 Compromise and informal disposition. ders have been issued may file an appli- 965.14 Public information. cation for modification or revocation AUTHORITY: 39 U.S.C. 204, 401. thereof. The Recorder shall transmit a copy of the application to the Chief SOURCE: 52 FR 29012, Aug. 5, 1987, unless Postal Inspector or his or her designee, otherwise noted. who shall file a written reply within 10 days after receipt or such other period § 965.1 Authority for rules. as the Judicial Officer may fix. A copy These rules of practice are issued by of the reply shall be sent to the appli- the Judicial Officer of the U.S. Postal cant by the Recorder. Thereafter an Service pursuant to authority dele- order granting or denying such applica- gated by the Postmaster General. tion will be issued by the Judicial Offi- [76 FR 15219, Mar. 21, 2011] cer. [52 FR 36763, Oct. 1, 1987, as amended at 71 FR § 965.2 Scope of rules. 53972, Sept. 13, 2006] The rules in this part shall be appli- § 964.21 Official record. cable to mail dispute cases forwarded to the Judicial Officer pursuant to The transcript of testimony together Postal Operations Manual section with all pleadings, orders, exhibits, 616.21. briefs, and other documents filed in the proceeding constitute the official [76 FR 15219, Mar. 21, 2011] record of the proceeding. § 965.3 Notice to parties. § 964.22 Public information. Upon receipt of a mail dispute case, The Librarian of the Postal Service the Recorder, Office of the Judicial Of- maintains for public inspection in the ficer, United States Postal Service,

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2101 Wilson Boulevard, Suite 600, Ar- gument setting forth in detail its dis- lington, VA 22201–3078, will send a no- agreements, if any, with its opponent’s tice of docketing and submission due initial submission. Such rebuttal may date to the parties together with a include any additional documents rel- copy of these rules. evant to the dispute. [76 FR 15219, Mar. 21, 2011] [76 FR 15219, Mar. 21, 2011]

§ 965.4 Presiding officers. § 965.7 Default. (a) The presiding officer shall be an Administrative Law Judge, an Admin- A party who fails to file the sub- istrative Judge qualified in accordance mittal required by § 965.5 may be held with law, or any other qualified person in default and the presiding officer may licensed to practice law designated by issue an initial decision that mail be the Judicial Officer to preside over a delivered to the other party. proceeding conducted pursuant to this part. The Judicial Officer assigns cases § 965.8 Hearings. under this part. Judicial Officer in- (a) Generally, mail dispute cases are cludes Associate Judicial Officer upon resolved based on written submissions. delegation thereto. The Judicial Offi- However, in the discretion of the pre- cer may, on his or her own initiative or siding officer an oral hearing may be for good cause found, preside at the re- conducted where in the opinion of the ception of evidence. presiding officer, the case cannot be re- (b) The presiding officer has author- solved by a review of the documentary ity to: evidence. (1) Take such action as may be necessary to preside properly over the pro- (b) Hearings are held at 2101 Wilson ceeding and render decision therein; Boulevard, Suite 600, Arlington, VA (2) Render an initial decision, if the 22201–3078, or such other place as may presiding officer is not the Judicial Of- be designated by the presiding officer. ficer; or if the presiding officer is the [52 FR 29012, Aug. 5, 1987, as amended at 63 Judicial Officer, issue a tentative or a FR 66053, Dec. 1, 1998; 76 FR 15219, Mar. 21, final decision or order. 2011] [52 FR 29012, Aug. 5, 1987, as amended at 75 FR 6570, Feb. 10, 2010; 76 FR 15219, Mar. 21, § 965.9 Evidence. 2011] (a) In general, admissibility will hinge on relevancy and materiality. § 965.5 Initial submissions by parties. However, relevant evidence may be ex- Within 15 days after receipt of the cluded if its probative value is substan- Recorder’s notice, each party shall file tially outweighed by the danger of un- via the Judicial Officer electronic fil- fair prejudice, or by considerations of ing system (https://uspsjoe.justware.com/ undue delay, waste of time, or needless justiceweb) a sworn statement of the presentation of cumulative evidence. facts supporting its claim to receipt of (b) Testimony shall be given under the mail together with a copy of each oath or affirmation and witnesses are document on which it relies in making subject to cross-examination. such claim, and any arguments supporting its claim. Unless the presiding [52 FR 29012, Aug. 5, 1987, as amended at 76 officer otherwise permits, all docu- FR 15219, Mar. 21, 2011] ments relative to this proceeding must be filed using the electronic filing sys- § 965.10 Transcript. tem. Testimony and argument at hearings [81 FR 40195, June 21, 2016] shall be reported verbatim, unless the presiding officer otherwise orders. § 965.6 Comments by parties. Transcripts or copies of the pro- Within 10 days of receipt of the other ceedings are supplied to the parties at party’s initial submission under § 965.5, such rate as may be fixed by contract each party may file with the Recorder between the reporter and Postal Serv- an additional statement or rebuttal ar- ice.

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§ 965.11 Initial decision. Service. The Recorder maintains the The presiding officer shall render an complete official record of every proceeding. initial decision in writing, based on the record, as expeditiously as possible, but [76 FR 15219, Mar. 21, 2011] to the extent practicable within 10 working days of closing of the record. PART 966—RULES OF PRACTICE IN The decision will be brief, containing PROCEEDINGS RELATIVE TO AD- summary findings of fact, conclusions MINISTRATIVE OFFSETS INITIATED of law, and reasons therefor. If there AGAINST FORMER EMPLOYEES has been a hearing the presiding officer may in his discretion render an oral de- OF THE POSTAL SERVICE cision. A typed copy of such oral decision will subsequently be furnished to Sec. 966.1 Authority for rules. the parties to establish the date for 966.2 Scope of rules. commencement of time for requesting 966.3 Definitions. review of the initial decision. 966.4 Petition for a hearing and supplement to petition. § 965.12 Appeal. 966.5 Effect of petition filing. Within 10 days after receipt by the 966.6 Filing, docketing and serving documents; computation of time; representa- parties of the initial or tentative deci- tion of parties. sion, either party may file an appeal to 966.7 Answer to petition. the Judicial Officer. The Judicial Offi- 966.8 Authority and responsibilities of Hear- cer, or by delegation the Associate Ju- ing Official or Judicial Officer. dicial Officer, in his or her sole discre- 966.9 Opportunity for oral hearing. tion, also may review the initial or 966.10 Initial decision. 966.11 Appeal. tentative decision on his or her own 966.12 Waiver of rights. initiative. If an appeal is denied, the 966.13 Ex parte communications. initial or tentative decision becomes the final agency decision upon the AUTHORITY: 31 U.S.C. 3716; 39 U.S.C. 204, 401, 2601. issuance of such denial. If an appeal is not filed and the Judicial Officer, or by SOURCE: 62 FR 63279, Nov. 28, 1997, unless delegation the Associate Judicial Offi- otherwise noted. cer does not review the initial or ten- § 966.1 Authority for rules. tative decision on his or her own initiative, a final order will be issued. The These rules of practice are issued by Judicial Officer’s decision on appeal or the Judicial Officer pursuant to au- his or her final order is the final agen- thority delegated by the Postmaster cy decision with no further agency re- General. view or appeal rights. § 966.2 Scope of rules. [76 FR 15219, Mar. 21, 2011] (a) The rules in this part apply to any petition filed by a former postal § 965.13 Compromise and informal disposition. employee: (1) To challenge the Postal Service’s Nothing in these rules precludes the determination that he or she is liable compromise, settlement, and informal to the Postal Service for a debt in- disposition of proceedings initiated curred in connection with his or her under these rules at any time prior to Postal Service employment, that the the issuance of the final agency deci- Postal Service intends to collect by ad- sion. ministrative offset pursuant to the authority of 31 U.S.C. 3716 and in accord- § 965.14 Public information. ance with the regulations contained in The Librarian of the Postal Service the Employee and Labor Relations maintains for public inspection in the Manual, sections 470 and 480; and/or Library copies of all initial, tentative, (2) To challenge the administrative and final agency decisions and orders. offset schedule proposed by the Postal Copies of decisions also are available Service for collecting any such debt. on the Judicial Officer’s section of the (b) The regulations in this part are official Web site of the U.S. Postal consistent with the provisions of the

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Federal Claims Collection Standards States Postal Service, 2101 Wilson Bou- pertaining to administrative offset. levard, Suite 600, Arlington, VA 22201– 3078. The recorder’s telephone number [77 FR 65104, Oct. 25, 2012] is (703) 812–1900, and the Judicial Offi- § 966.3 Definitions. cer’s Web site is http://about.usps.com/ who-we-are/judicial/welcome.htm. The fax (a) Accounting Service Center refers to number is (703) 812–1901. the United States Postal Service Eagan Accounting Service Center or its suc- [77 FR 65104, Oct. 25, 2012] cessor installation. (b) Administrative offset refers to the § 966.4 Petition for a hearing and sup- withholding of money payable by the plement to petition. Postal Service or the United States to, (a) A former employee who is alleged or held by the Postal Service or the to be responsible for a debt to the Post- United States for, a former employee al Service may petition for a hearing in order to satisfy a debt determined to under this part, provided: be owed by the former employee to the (1) Liability for the debt and/or the Postal Service. proposed offset schedule has not been (c) Debt refers to any amount deter- established under part 452.3 or part mined by the Postal Service to be owed 462.3 of the Employee & Labor Rela- to the Postal Service by a former em- tions Manual (ELM); ployee. (2) The former employee has received (d) Federal Claims Collection Standards a Notice from the Accounting Service or FCCS refers to regulations promulgated by the Department of Justice Center in compliance with section 472.1 and the Department of the Treasury of the ELM and the administrative off- and codified at 31 CFR parts 900 set provisions of the FCCS, informing through 904. the former employee of the debt and an (e) Former employee refers to an indi- offset schedule to satisfy the debt, the vidual whose employment with the former employee’s rights under 31 Postal Service has ceased. An em- U.S.C. 3716(a), the right to request re- ployee is considered formally separated consideration of the debt and/or offset from the Postal Service rolls as of schedule from the Accounting Service close of business on the effective date Center, and the right to request review of his or her separation. under this part; and (f) General Counsel refers to the Gen- (3) The former employee has re- eral Counsel of the Postal Service, and quested reconsideration of the Postal includes a designated representative. Service’s determination of the exist- (g) Hearing Official refers to an Ad- ence or amount of the alleged debt and/ ministrative Law Judge qualified to or the offset schedule proposed by the hear cases under the Administrative Postal Service within thirty (30) cal- Procedure Act, an Administrative endar days of receiving the notice ref- Judge appointed under the Contract erenced in paragraph (a)(2), and either Disputes Act of 1978, or any other has received a reconsideration deter- qualified person licensed to practice mination, or within sixty (60) calendar law designated by the Judicial Officer days from the reconsideration request to preside over a hearing conducted has not received a reconsideration de- pursuant to this part. termination. (h) Judicial Officer refers to the Judi- (b) Notwithstanding the provisions of cial Officer, Associate Judicial Officer, this part, the Postal Service may omit or Acting Judicial Officer of the Postal the procedures for notice and reconsid- Service. eration in this part under certain cir- (i) Reconsideration refers to the re- cumstances as set forth below: view of an alleged debt and/or the pro- (1) If the Postal Service first learns posed offset schedule conducted by the of the existence of the amount owed by Accounting Service Center at the re- the former employee when there is in- quest of a former employee alleged to sufficient time before payment would be indebted to the Postal Service. be made to the former employee to (j) Recorder refers to the Recorder, allow for prior notice and an oppor- Judicial Officer Department, United tunity for review under this part. When

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prior notice and an opportunity for re- (1) The words, ‘‘Petition for Review view are omitted, the Postal Service Under 39 CFR Part 966’’; will give the former employee notice (2) The former employee’s name; and an opportunity for review as soon (3) The former employee’s home ad- as practicable and will promptly refund dress, email address (if available), and any money ultimately found not to telephone number, and any other ad- have been owed. In such circumstances dress and telephone number at which whereby prior notice and an oppor- the former employee may be contacted tunity for pre-deprivation review are about these proceedings; omitted, the former employee may sub- (4) A statement of the date the mit a petition for review under this former employee received the Account- part. ing Service Center’s decision upon re- (2) If an agency (including the Postal consideration of the alleged debt and a Service) has already given the former copy of the decision; employee any of the required notice (5) A statement of the grounds upon and review opportunities set forth in which the former employee objects to the FCCS with respect to a particular the Postal Service’s determination of debt. In such a situation, the Postal the debt or to the administrative offset schedule proposed by the Postal Serv- Service need not duplicate such notice ice for collecting any such debt. This and review opportunities before taking statement should identify with reason- an administrative offset. able specificity and brevity the facts, (3) If a former bargaining unit em- evidence, and legal arguments, if any, ployee of the Postal Service pursues, in which support the former employee’s accordance with the applicable provi- position; and sions of his or her CBA, a grievance (6) Copies of all records in the former concerning the Postal Service’s claim, employee’s possession which relate to including, but not limited to, the exist- the debt and which the former em- ence of a debt owed to the Postal Serv- ployee may enter into the record of the ice, the amount of such debt, and/or hearing. the proposed repayment schedule, and (e) The former employee may, if nec- none of the circumstances set forth in essary, file with the Recorder addi- ELM section 483.1 apply; tional information as a supplement to (4) If otherwise allowed by law, in- the petition at any time prior to the cluding, but not limited to, the admin- filing of the answer to the petition istrative offset provisions of the FCCS. under § 966.7, or at such later time as (c) Within thirty (30) calendar days permitted by the Hearing Official upon after the date of receipt of the Ac- a showing of good cause. counting Service Center’s decision [77 FR 65105, Oct. 25, 2012, as amended at 80 upon reconsideration, after the expira- FR 54723, Sept. 11, 2015] tion of sixty (60) calendar days after a request for reconsideration where a re- § 966.5 Effect of petition filing. consideration determination is not Upon receipt and docketing of the made, or following an administrative former employee’s petition, the Re- offset taken without prior notice and corder will notify the General Counsel opportunity for reconsideration pursu- that the petition has been filed and ant to paragraph (b)(1) of this section, that a timely filed petition stays fur- the former employee must file a writ- ther collection action. ten petition electronically at https:// uspsjoe.justware.com/justiceweb, or by § 966.6 Filing, docketing and serving mail at Recorder, Judicial Officer De- documents; computation of time; partment, United States Postal Serv- representation of parties. ice, 2101 Wilson Blvd., Suite 600, Arling- (a) Filing. After a petition is filed, all ton, VA 22201–3078. documents required under this part (d) A sample petition is available must be filed using the electronic filing through the Judicial Officer Electronic system unless the Hearing Official per- Filing Web site (https:// mits otherwise. Documents submitted uspsjoe.justware.com/justiceweb). The pe- using the electronic filing system are tition must include the following: considered filed as of the date/time

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(Eastern Time) reflected in the system. er than directly with the former em- Documents mailed to the Recorder are ployee. considered filed on the date mailed as [77 FR 65105, Oct. 25, 2012, as amended at 80 evidenced by a United States Postal FR 54723, Sept. 11, 2015] Service postmark. Filings by any other means are considered filed upon receipt § 966.7 Answer to petition. by the Recorder of a complete copy of the filing during normal business hours Within thirty (30) days after the date (Normal Recorder office business hours of receipt of the petition, the General are between 8:45 a.m. and 4:45 p.m., Counsel shall file an answer to the petition, and attach all available rel- Eastern Time). If both parties are par- evant records and documents in sup- ticipating via the electronic filing sys- port of the Postal Service’s claim, or tem, separate service upon the oppos- the administrative offset schedule pro- ing party is not required. Otherwise, posed by the Postal Service for col- documents shall be served personally lecting any such claim. The answer or by mail on the opposing party, not- shall provide a clear and detailed de- ing on the document filed, or on the scription of the basis for the Postal transmitting letter, that a copy has Service’s determination of the alleged been so furnished. debt and its calculation of the amount (b) The Recorder will Docketing. of the alleged debt and/or its proposed maintain a docket record of pro- offset schedule, as appropriate. ceedings under this part and will assign each petition a docket number. After [77 FR 65106, Oct. 25, 2012] notification of the docket number, the former employee and General Counsel § 966.8 Authority and responsibilities should refer to it on any further filings of Hearing Official or Judicial Offi- regarding the petition. cer. (c) Time computation. A filing period (a) In processing a case under this under the rules in this part excludes part, the Hearing Official’s authority the day the period begins, and includes includes, but is not limited to, the fol- the last day of the period unless the lowing: last day is a Saturday, Sunday, or legal (1) Ruling on all offers, motions, or holiday, in which event the period runs requests by the parties; until the close of business on the next (2) Issuing any notices, orders, or business day. Requests for extensions memoranda to the parties concerning of time shall be made in writing stat- the hearing procedures; ing good cause therefor, shall represent (3) Conducting telephone conferences that the moving party has contacted with the parties to expedite the pro- the opposing party about the request, ceedings (a memorandum of a tele- or made reasonable efforts to do so, phone conference will be transmitted and shall indicate whether the oppos- to both parties). The Hearing Official’s ing party consents to the extension. Memorandum of Telephone Conference (d) Representation of parties. After the serves as the official record of that filing of the petition, further document conference; transmittals for, or communications (4) Determining if an oral hearing is with, the Postal Service shall be necessary, the type of oral hearing that through its representative, the General would be appropriate, and setting the Counsel, or designee. The representa- place, date, and time for such hearing; tive of the Postal Service, as des- (5) Administering oaths or affirma- ignated by the General Counsel, shall tions to witnesses; file a notice of appearance as soon as (6) Conducting the hearing in a man- practicable, and no later than the date ner to maintain discipline and decorum for filing the answer. If a former em- while assuring that relevant, reliable, ployee has a representative, further and probative evidence is elicited on transmissions of documents and other the disputed issues, and that irrele- communications by and with the vant, immaterial, or repetitious evi- former employee shall be made dence is excluded. The Hearing Official through his or her representative rath- in his or her discretion may examine

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witnesses to ensure that a satisfactory including findings of fact and conclu- record is developed; sions of law, which the Hearing Official (7) Establishing the record in the relied upon in determining whether the case. Except as the Hearing Official former employee is indebted to the may otherwise order in his or her dis- Postal Service, or in upholding or re- cretion, no proof shall be received in vising the administrative offset sched- evidence after completion of an oral ule proposed by the Postal Service for hearing or, in cases submitted on the collecting a former employee’s debt. written record, after notification by When the Judicial Officer presides at a the Hearing Official that the case is hearing he or she shall issue a final or ready for decision. The weight to be at- a tentative decision. tached to any evidence of record will (b) The Hearing Official shall rest within the sound discretion of the promptly send to each party a copy of Hearing Official. The Hearing Official the initial or tentative decision, and a may require either party, with appro- statement describing the right of ap- priate notice to the other party, to peal to the Judicial Officer in accord- submit additional evidence on any rel- ance with § 966.11. evant matter; (8) Issuing an initial decision or one § 966.11 Appeal. on remand; and The initial or tentative decision will (9) Granting reasonable time exten- become the final agency decision thir- sions or other relief for good cause ty (30) days after its issuance unless, shown. before the expiration of that time, a (b) The Judicial Officer, in addition party files an appeal with the Judicial to possessing such authority as is de- Officer, or the Judicial Officer, in his scribed elsewhere in this part, shall or her sole discretion, elects to conduct possess all of the authority and respon- a review of the decision on his or her sibilities of a Hearing Official. own initiative. During such review or appeal consideration, the Judicial Offi- [77 FR 65106, Oct. 25, 2012] cer will accept all findings of fact in the original decision unless clearly er- § 966.9 Opportunity for oral hearing. roneous. If following appeal or review, An oral hearing shall be held in the the Judicial Officer affirms the origi- sole discretion of the Hearing Official. nal decision, that decision becomes the An oral hearing includes an in-person final agency decision with no further hearing, a telephonic hearing, or a right of appeal within the agency. hearing by video conference. When the Hearing Official determines that an [77 FR 65106, Oct. 25, 2012] oral hearing shall not be conducted, § 966.12 Waiver of rights. the decision shall be based solely on written submissions. The Hearing Offi- (a) The Hearing Official may deter- cial shall arrange for the recording and mine that the former employee has transcription of an oral hearing, which waived the right to a hearing, and that shall serve as the official record of the administrative offset may be initiated hearing. The unexcused absence of a if the former employee files a petition party at the time and place set for for hearing after the period prescribed hearing may not be occasion for delay in these Rules and fails to demonstrate at the discretion of the Hearing Offi- to the satisfaction of the Hearing Offi- cial. In the event of such absence, the cial good cause for the delay; or has hearing may proceed without the par- filed a withdrawal of the former em- ticipation of the absent party. ployee’s previous petition for a hearing. [77 FR 65106, Oct. 25, 2012] (b) The Hearing Official may determine that the Postal Service has § 966.10 Initial decision. waived the alleged debt at issue, and (a) After the receipt of written sub- that the administrative offset may not missions or after the conclusion of the be initiated if the Postal Service fails hearing and the receipt of any post- to file the answer within the period hearing briefs, the Hearing Official prescribed by the Rules and fails to shall issue a written initial decision, demonstrate to the satisfaction of the

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Hearing Official good cause for the or granting of the petition as appro- delay; or has filed a withdrawal of the priate. debt determination at issue. [77 FR 65106, Oct. 25, 2012] (c) In addition, whenever a record discloses the failure of either party to § 966.13 Ex parte communications. file documents required by these rules, Ex parte communications are not al- respond to notices or correspondence lowed between a party and the Hearing from the Hearing Official, comply with Official or the Official’s staff. For these orders of the Hearing Official, partici- purposes, ex parte communication pate in conferences, fail to treat the means an oral or written communica- proceedings with the proper decorum, tion, not on the public record, with one or otherwise indicate an intention not party only with respect to which rea- to continue the prosecution or defense sonable prior notice to all parties is of a petition, the Hearing Official may not given, but it shall not include re- issue an order requiring the offending quests for status reports or procedural party to show cause why the petition matters. A memorandum of any com- should not be dismissed or granted, as munication between the Hearing Offi- appropriate. If the offending party cial and a party will be transmitted to shall fail to show cause, the Hearing both parties. Official may take such action as he or [77 FR 65106, Oct. 25, 2012] she deems reasonable and proper under the circumstances, including dismissal PARTS 967–999 [RESERVED]

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