Postal Service

39 Revised as of July 1, 2003

Postal Service

Containing a codification of documents of general applicability and future effect

As of July 1, 2003

With Ancillaries

Published by Office of the Federal Register National Archives and Records Administration

A Special Edition of the Federal Register

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For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402–0001

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Page Explanation ...... v

Title 39:

Chapter I—United States Postal Service ...... 3

Chapter III—Postal Rate Commission ...... 343

Finding Aids:

Material Approved for Incorporation by Reference ...... 481

Table of CFR Titles and Chapters ...... 483

Alphabetical List of Agencies Appearing in the CFR ...... 501

List of CFR Sections Affected ...... 511

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VerDate jul<14>2003 08:35 Aug 06, 2003 Jkt 200138 PO 00000 Frm 00003 Fmt 8092 Sfmt 8092 Y:\SGML\200138F.XXX 200138F Cite this Code: CFR

To cite the regulations in this volume use title, part and section number. Thus, 39 CFR 1.1 refers to title 39, part 1, section 1.

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The Code of Federal Regulations is a codification of the general and permanent rules published in the Federal Register by the Executive departments and agencies of the Federal Government. The Code is divided into 50 titles which represent broad areas subject to Federal regulation. Each title is divided into chapters which usually bear the name of the issuing agency. Each chapter is further sub- divided into parts covering specific regulatory areas. Each volume of the Code is revised at least once each calendar year and issued on a quarterly basis approximately as follows: Title 1 through Title 16...... as of January 1 Title 17 through Title 27 ...... as of April 1 Title 28 through Title 41 ...... as of July 1 Title 42 through Title 50...... as of October 1 The appropriate revision date is printed on the cover of each volume. LEGAL STATUS The contents of the Federal Register are required to be judicially noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie evidence of the text of the original documents (44 U.S.C. 1510). HOW TO USE THE CODE OF FEDERAL REGULATIONS The Code of Federal Regulations is kept up to date by the individual issues of the Federal Register. These two publications must be used together to determine the latest version of any given rule. To determine whether a Code volume has been amended since its revision date (in this case, July 1, 2003), consult the ‘‘List of CFR Sections Affected (LSA),’’ which is issued monthly, and the ‘‘Cumulative List of Parts Affected,’’ which appears in the Reader Aids section of the daily Federal Register. These two lists will identify the Federal Register page number of the latest amendment of any given rule. EFFECTIVE AND EXPIRATION DATES Each volume of the Code contains amendments published in the Federal Reg- ister since the last revision of that volume of the Code. Source citations for the regulations are referred to by volume number and page number of the Federal Register and date of publication. Publication dates and effective dates are usually not the same and care must be exercised by the user in determining the actual effective date. In instances where the effective date is beyond the cutoff date for the Code a note has been inserted to reflect the future effective date. In those instances where a regulation published in the Federal Register states a date certain for expiration, an appropriate note will be inserted following the text. OMB CONTROL NUMBERS The Paperwork Reduction Act of 1980 (Pub. L. 96–511) requires Federal agencies to display an OMB control number with their information collection request.

VerDate Jan<31>2003 08:44 Jul 16, 2003 Jkt 200138 PO 00000 Frm 00005 Fmt 8008 Sfmt 8092 Y:\SGML\200138F.XXX 200138F Many agencies have begun publishing numerous OMB control numbers as amendments to existing regulations in the CFR. These OMB numbers are placed as close as possible to the applicable recordkeeping or reporting requirements. OBSOLETE PROVISIONS Provisions that become obsolete before the revision date stated on the cover of each volume are not carried. Code users may find the text of provisions in effect on a given date in the past by using the appropriate numerical list of sections affected. For the period before January 1, 2001, consult either the List of CFR Sections Affected, 1949–1963, 1964–1972, 1973–1985, or 1986–2000, published in 11 separate volumes. For the period beginning January 1, 2001, a ‘‘List of CFR Sections Affected’’ is published at the end of each CFR volume. INCORPORATION BY REFERENCE What is incorporation by reference? Incorporation by reference was established by statute and allows Federal agencies to meet the requirement to publish regulations in the Federal Register by referring to materials already published elsewhere. For an incorporation to be valid, the Director of the Federal Register must approve it. The legal effect of incorporation by reference is that the material is treated as if it were published in full in the Federal Register (5 U.S.C. 552(a)). This material, like any other properly issued regulation, has the force of law. What is a proper incorporation by reference? The Director of the Federal Register will approve an incorporation by reference only when the requirements of 1 CFR part 51 are met. Some of the elements on which approval is based are: (a) The incorporation will substantially reduce the volume of material published in the Federal Register. (b) The matter incorporated is in fact available to the extent necessary to afford fairness and uniformity in the administrative process. (c) The incorporating document is drafted and submitted for publication in accordance with 1 CFR part 51. Properly approved incorporations by reference in this volume are listed in the Finding Aids at the end of this volume. What if the material incorporated by reference cannot be found? If you have any problem locating or obtaining a copy of material listed in the Finding Aids of this volume as an approved incorporation by reference, please contact the agency that issued the regulation containing that incorporation. If, after contacting the agency, you find the material is not available, please notify the Director of the Federal Register, National Archives and Records Administration, Washington DC 20408, or call (202) 741–6010. CFR INDEXES AND TABULAR GUIDES A subject index to the Code of Federal Regulations is contained in a separate volume, revised annually as of January 1, entitled CFR INDEX AND FINDING AIDS. This volume contains the Parallel Table of Statutory Authorities and Agency Rules (Table I). A list of CFR titles, chapters, and parts and an alphabetical list of agencies publishing in the CFR are also included in this volume. An index to the text of ‘‘Title 3—The President’’ is carried within that volume. The Federal Register Index is issued monthly in cumulative form. This index is based on a consolidation of the ‘‘Contents’’ entries in the daily Federal Reg- ister. A List of CFR Sections Affected (LSA) is published monthly, keyed to the revision dates of the 50 CFR titles.

VerDate Jan<31>2003 08:44 Jul 16, 2003 Jkt 200138 PO 00000 Frm 00006 Fmt 8008 Sfmt 8092 Y:\SGML\200138F.XXX 200138F REPUBLICATION OF MATERIAL There are no restrictions on the republication of material appearing in the Code of Federal Regulations. INQUIRIES For a legal interpretation or explanation of any regulation in this volume, contact the issuing agency. The issuing agency’s name appears at the top of odd–numbered pages. For inquiries concerning CFR reference assistance, call 202–741–6000 or write to the Director, Office of the Federal Register, National Archives and Records Administration, Washington, DC 20408 or e-mail [email protected]. SALES The Government Printing Office (GPO) processes all sales and distribution of the CFR. For payment by credit card, call toll free, 866–512–1800 or DC area, 202– 512–1800, M–F, 8 a.m. to 4 p.m. e.s.t. or fax your order to 202–512–2250, 24 hours a day. For payment by check, write to the Superintendent of Documents, Attn: New Orders, P.O. Box 371954, Pittsburgh, PA 15250–7954. For GPO Customer Serv- ice call 202–512–1803. ELECTRONIC SERVICES The full text of the Code of Federal Regulations, The United States Govern- ment Manual, the Federal Register, Public Laws, Public Papers, Weekly Compila- tion of Presidential Documents and the Privacy Act Compilation are available in electronic format at www.access.gpo.gov/nara (‘‘GPO Access’’). For more information, contact Electronic Information Dissemination Services, U.S. Govern- ment Printing Office. Phone 202–512–1530, or 888–293–6498 (toll–free). E–mail, [email protected]. The Office of the Federal Register also offers a free service on the National Archives and Records Administration’s (NARA) World Wide Web site for public law numbers, Federal Register finding aids, and related information. Connect to NARA’s web site at www.archives.gov/federallregister. The NARA site also contains links to GPO Access.

RAYMOND A. MOSLEY, Director, Office of the Federal Register. July 1, 2003.

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Title 39—POSTAL SERVICE is composed of one volume. The contents of this volume represent all current regulations codified under this title of the CFR as of July 1, 2003.

For Chapter I—United States Postal Service, the ‘‘Domestic Mail Manual’’, the ‘‘Postal Service Publication 42, International Mail’’ and the ‘‘Postal Con- tracting Manual, U.S. Postal Service Publication 41’’ are incorporated by reference. For Federal Register documentation, see the Material Approved for Incor- poration by Reference in the Finding Aids section of this volume.

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VerDate Jan<31>2003 08:44 Jul 16, 2003 Jkt 200138 PO 00000 Frm 00010 Fmt 8092 Sfmt 8092 Y:\SGML\200138F.XXX 200138F CFRORDR.FRM Title 39—Postal Service

Part

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

CHAPTER III—Postal Rate Commission ...... 3000

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

BYLAWS OF THE BOARD OF GOVERNORS

Part Page 1 Postal policy [Article I] ...... 9 2 General and technical provisions [Article II] ...... 9 3 Board of Governors [Article III] ...... 11 4 Officers [Article IV] ...... 14 5 Committees [Article V] ...... 15 6 Meetings [Article VI] ...... 16 7 Public observation [Article VII] ...... 17 8 [Reserved] 9 Policy on communications with Governors of the Postal Service during pendency of rate and classification proceedings [Appendix] ...... 21 10 Rules of conduct for Postal Service Governors [Ap- pendix] ...... 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 ...... 29

SUBCHAPTER D—ORGANIZATION AND ADMINISTRATION 211 Application of regulations ...... 34 221 General principles of organization ...... 35 222 Delegations of authority ...... 38 223 Relationships and channels of communication ...... 42 224 Organizations reporting directly to the Postmaster General ...... 43 225 Organizations reporting directly to the Deputy Postmaster General ...... 46 3

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Part Page 226 Groups and departments reporting to the Associate Postmasters General ...... 46 227 Headquarters related field units ...... 49 228 Service centers ...... 51 229 Field organizations ...... 52

INSPECTION SERVICE REQUIREMENTS 230 Office of Inspector General ...... 54 231 Protection of post offices ...... 56 232 Conduct on postal property ...... 56 233 Inspection Service authority ...... 60 235 Defense Department liaison ...... 83

POST OFFICE ORGANIZATION AND ADMINISTRATION 241 Establishment classification, and discontinuance .. 84 242 Change of site ...... 94 243 Conduct of offices ...... 94

GENERAL POSTAL ADMINISTRATION 255 Access of persons with disabilities to postal service programs, activities, facilities, and electronic and information technology ...... 95 259 Services performed for other agencies ...... 100

RECORDS AND INFORMATION 261 Records and information management ...... 102 262 Records and information management definitions 102 263 Records retention and disposition ...... 105 264 Vital records ...... 106 265 Release of information ...... 106 266 Privacy of information ...... 133 267 Protection of information ...... 145 268 Privacy of information—employee rules of conduct 148 273 Administration of Program Fraud Civil Remedies Act ...... 149

DAMAGE TO OR DESTRUCTION OF FIRM MAILINGS 281 Firm mailings damaged or destroyed through transportation accidents or catastrophes ...... 154

SUBCHAPTER E—RESTRICTIONS ON PRIVATE CARRIAGE OF LETTERS 310 Enforcement of the private express statutes ...... 155 320 Suspension of the private express statutes ...... 159

SUBCHAPTER F—PERSONNEL 447 Rules of conduct for postal employees ...... 166 4

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Part Page 491 Garnishment of salaries of employees of the Postal Service and the Postal Rate Commission ...... 170

SUBCHAPTER G—POSTAGE PROGRAMS 501 Authorization to Manufacture and Distribute Post- age Meters ...... 174 551 Semipostal stamp program ...... 193

SUBCHAPTER H—PROCUREMENT SYSTEM FOR THE U.S. POSTAL SERVICE: INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS 601 Procurement of property and services ...... 198 602 Intellectual property rights other than patents ..... 200

SUBCHAPTER I [RESERVED]

SUBCHAPTER J—POSTAL SERVICE DEBT OBLIGATIONS; DISBURSEMENT POSTAL MONEY ORDERS 760 Applicability of Treasury Department regulations 202 761 Book-entry procedures ...... 202 762 Disbursement postal money orders ...... 205

SUBCHAPTER K—ENVIRONMENTAL REGULATIONS 775 National Environmental Policy Act procedures ..... 210 776 Floodplain and wetland procedures ...... 220

SUBCHAPTER L—SPECIAL REGULATIONS 777 Relocation assistance and real property acquisition policies ...... 224 778 Intergovernmental review of Postal Service facility actions ...... 243

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 ...... 247 913 Procedures for the issuance of administrative subpoenas under 39 U.S.C. 3016 ...... 250 916 [Reserved]

RULES OF PROCEDURE BEFORE THE MAIL PROCESSING DEPARTMENT 927 Rules of procedure relating to fines, deductions, and damages ...... 252 5

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Part Page 931 Rules of procedure governing the compromise of obligations ...... 254

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 ...... 254

RULES OF PROCEDURE BEFORE THE JUDICIAL OFFICER 951 Procedure governing the eligibility of persons to practice before the Postal Service ...... 256 952 Rules of practice in proceedings relative to false representation and lottery orders ...... 258 953 Rules of practice in proceedings relative to mailability ...... 269 954 Rules of practice in proceedings relative to the denial, suspension, or revocation of periodicals mail privileges ...... 272 955 Rules of practice before the Board of Contract Ap- peals ...... 277 956 Rules of practice in proceedings relative to disciplinary action for violation of restrictions on post-employment activity ...... 288 957 Rules of practice in proceedings relative to debarment and suspension from contracting ...... 294 958 Rules of practice in proceedings relative to the refusal to provide Post Office box or caller service and the termination of Post Office box or caller service ...... 301 959 Rules of practice in proceedings relative to the private express statutes ...... 303 960 Rules relative to implementation of the Equal Ac- cess to Justice Act in Postal Service proceedings 311 961 Rules of practice in proceedings relative to employee hearing petitions under section 5 of the Debt Collection Act ...... 317 962 Rules of practice in proceedings relative to the Program Fraud Civil Remedies Act ...... 321 963 Rules of practice in proceedings relative to violations of the pandering advertisements statute, 39 U.S.C. 3008 ...... 329 964 Rules of practice governing disposition of mail withheld from delivery pursuant to 39 U.S.C. 3003, 3004 ...... 332 965 Rules of practice in proceedings relative to mail disputes ...... 337 6

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Part Page 966 Rules of practice in proceedings relative to administrative offsets initiated against former employees of the Postal Service ...... 339

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Bylaws of the Board of Governors opment of the Postal Service. Delega- tions of authority do not relieve the PART 1—POSTAL POLICY (ARTICLE I) Board of full responsibility for carrying out its duties and functions, and are Sec. revocable by the Governors in their ex- 1.1 Establishment of the U.S. Postal Serv- clusive judgment. ice. 1.2 Delegation of authority. PART 2—GENERAL AND TECHNICAL AUTHORITY: 39 U.S.C. 101, 202, 205, 401(2), PROVISIONS (ARTICLE II) 402, 403, 3621, as enacted by Public Law 91– 375. Sec. SOURCE: 59 FR 18447, Apr. 18, 1994, unless 2.1 Office of the Board of Governors. otherwise noted. 2.2 Agent for receipt of process. § 1.1 Establishment of the U.S. Postal 2.3 Offices. Service. 2.4 Seal. 2.5 Authority. The U.S. Postal Service is estab- 2.6 Severability, amendment, repeal, and lished under the provisions of the Post- waiver of bylaws. al Reorganization Act (the Reorganiza- tion Act) of August 12, 1970, Public Law AUTHORITY: 39 U.S.C. 202, 203, 205(c), 207, 91–375, 84 Stat. 719, as an independent 401(2), as enacted by Pub. L. 91–375, and 5 U.S.C. 552b(f), (g), as enacted by Pub. L. 94– establishment of the executive branch 409. of the Government of the United States, under the direction of a Board SOURCE: 59 FR 18447, Apr. 18, 1994, unless of Governors, with the Postmaster otherwise noted. General as its chief executive officer. The Board of Governors of the Postal § 2.1 Office of the Board of Governors. Service (the Board) directs the exercise There shall be located in Washington, of its powers through management DC an Office of the Board of Governors that is expected to be honest, efficient, of the United States Postal Service. It economical, and mindful of the com- shall be the function of this Office to petitive business environment in which provide staff support for the Board, as the Postal Service operates. The Board directed by the Chairman of the Board, consists of nine Governors appointed to enable the Board to carry out effec- by the President, by and with the ad- tively its duties under the Reorganiza- vice and consent of the Senate, to rep- tion Act. resent the public interest generally, together with the Postmaster General § 2.2 Agent for receipt of process. and Deputy Postmaster General. The General Counsel of the Postal § 1.2 Delegation of authority. Service shall act as agent for the re- Except for powers, duties, or obliga- ceipt of legal process against the Post- tions specifically vested in the Gov- al Service, and as agent for the receipt ernors by law, the Board may delegate of legal process against the Board of its authority to the Postmaster Gen- Governors or a member of the Board, in eral under such terms, conditions, and his or her official capacity, and all limitations, including the power of re- other officers and employees of the delegation, as it finds desirable. The Postal Service to the extent that the bylaws of the Board are the framework process arises out of the official func- of the system through which the Board tions of those officers and employees. monitors the exercise of the authority The General Counsel shall also issue it has delegated, measures progress to- public certifications concerning closed ward the goals it has set, and shapes meetings of the Board as appropriate the policies to guide the future devel- under 5 U.S.C. 552b(f).

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§ 2.3 Offices. The principal office of the Postal Service is located in Washington, DC, with such regional and other offices and places of business as the Post- master General establishes from time to time, or the business of the Postal Service requires.

§ 2.4 Seal. (a) The Seal of the Postal Service is filed by the Board in the Office of the Secretary of State, and is required by 39 U.S.C. 207 to be judicially noticed. The Seal shall be in the custody of the General Counsel, who shall affix it to all commissions of officers of the Post- al Service, and use it to authenticate records of the Postal Service and for (b) The location and description of other official purposes. The following the Postal Service emblem is described describes the Seal adopted for the Post- at 39 CFR 221.9. al Service: (1) A stylized bald eagle is poised for § 2.5 Authority. flight, facing to the viewer’s right, These bylaws are adopted by the above two horizontal bars between Board under the authority conferred which are the words ‘‘U.S. MAIL’’, sur- upon the Postal Service by 39 U.S.C. rounded by a square border with round- 401(2) and 5 U.S.C. 552b(g). ed corners consisting of the words ‘‘UNITED STATES POSTAL SERV- § 2.6 Severability, amendment, repeal, ICE’’ on the left, top, and right, and and waiver of bylaws. consisting of nine five-pointed stars on The invalidity of any provision of the base. these bylaws does not affect the valid- (2) The color representation of the ity of the remaining provisions, and for Seal shows, a white field on which the this purpose these bylaws are sever- bald eagle appears in dark blue, the able. The Board may amend or repeal words ‘‘U.S. MAIL’’ in black, the bar these bylaws at any special or regular above the words in red, the bar below meeting, provided that each member of in blue, and the entire border con- the Board has received a written notice sisting of the words ‘‘UNITED STATES containing a statement of the proposed POSTAL SERVICE’’ and stars in ochre. amendment or repeal at least 5 days before the meeting. The members of the Board may waive the 5 days’ notice or the operation of any other provision of these bylaws by unanimous consent, if that action is not prohibited by law. The Secretary shall submit the text of any amendment to these bylaws for publication in the FEDERAL REGISTER as soon as practicable after the amendment is adopted by the Board.

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PART 3—BOARD OF GOVERNORS (b) Adoption of, and amendments to, (ARTICLE III) the bylaws of the Board. (c) (1) Approval of the annual Postal Sec. Service budget program in both ten- 3.1 Responsibilities of Board. tative and final form, including re- 3.2 Compensation of Board. quests for appropriations; 3.3 Matters reserved for decision by the (2) Approval of the annual Postal Board. Service operating budget. 3.4 Matters reserved for decision by the (d) Approval of the annual financial Governors. statements of the Postal Service fol- 3.5 Delegation of authority by Board. 3.6 Information furnished to Board—finan- lowing receipt of the annual report of cial and operating reports. the Postal Service’s independent, cer- 3.7 Information furnished to Board—pro- tified public accounting firm. gram review. (e) Approval of the Postal Service 3.8 Information furnished to Board—special Five-Year Capital Investment Plans, reports. including specific approval of each cap- AUTHORITY: 39 U.S.C. 202, 203, 205, 401 (2), ital investment project, each new (10), 402, 414, 416, 1003, 2802–2804, 3013; 5 U.S.C. lease/rental agreement, and each re- 552b (g), (j); Inspector General Act, 5 U.S.C. search and development project exceed- app.; Pub. L. 107–67, 115 Stat. 514 (2001). ing such amount specified by resolu- SOURCE: 59 FR 18448, Apr. 18, 1994, unless tion at the annual Board meeting in otherwise noted. January. In the case of any project or agreement subject to the requirement § 3.1 Responsibilities of Board. of Board approval under this provision, The composition of the Board is de- the expenditure of any funds in excess scribed in 39 U.S.C. 202. The Board di- of the amount previously authorized by rects the exercise of the powers of the the Board must be specifically ap- Postal Service, reviews the practices proved by the Board. For the purpose and policies of the Postal Service, and of determining the cost of a capital in- directs and controls the expenditures vestment project, lease/rental agree- of the Postal Service. Consistent with ment, or research and development the broad delegation of authority to project, the Postmaster General in § 3.5 of these (1) All such projects and agreements bylaws, and except for those powers, undertaken as part of a unitary plan duties, or obligations which the Reor- (either for contemporaneous or sequen- ganization Act specifically vests in the tial development in one of several loca- Governors, as distinguished from the tions) shall be considered one project Board of Governors, the Board accom- or agreement, and plishes its purposes by monitoring the (2) The cost of a lease/rental agree- operations and performance of the ment shall be the present value of all Postal Service, and by establishing lease payments over the term of the basic objectives, broad policies, and lease, including all periods covered by long-range goals for the Postal Service. renewal options or all periods for which failure to renew imposes a penalty or a § 3.2 Compensation of Board. hardship such that renewal appears to Section 202(a) of title 39 provides for be reasonably assured, plus the cost of the compensation of the Governors and any leasehold improvements planned in for reimbursement for travel and rea- connection with the lease/rental agree- sonable expenses incurred in attending ment. The present value will be deter- Board meetings. Compensation is pro- mined using the cost of capital of the vided for not more than 42 days of Postal Service. meetings per year. (3) The cost of a developmental real estate project shall be the sum of: § 3.3 Matters reserved for decision by (i) The as-is value of the postal assets the Board. contributed to the project; The following matters are reserved (ii) Cash contributed by the Postal for decision by the Board of Governors: Service; and (a) Election of the Vice Chairman of (iii) Debt that impacts the Postal the Board. Service’s investment.

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(f) Authorization of the Postal Serv- (p) Approval of official statements ice to request the Postal Rate Commis- adopting major policy positions or de- sion to submit a recommended decision parting from established major policy on changes in postal rates. positions, and of official positions on (g) Authorization of the Postal Serv- legislative proposals having a major ice to request the Postal Rate Commis- impact on the Postal Service. sion to submit a recommended decision (q) Approval of all major policy posi- on changes in the mail classification tions taken with the Department of schedule. Justice on petitioning the Supreme (h) Determination of an effective Court of the United States for writs of date for changes in postal rates or mail certiorari. classification. (r) Approval and transmittal to the (i) Authorization of the Postal Serv- President and the Congress of the an- ice to request the Postal Rate Commis- nual report of the Postmaster General sion to submit an advisory opinion on under 39 U.S.C. 2402. a proposed change in the nature of (s) Approval and transmittal to the postal services which will generally af- Congress of the annual report of the fect service on a nationwide or sub- Board under 5 U.S.C. 552b(j). stantially nationwide basis. (t) Approval of the annual com- (j) Approval of any use of the author- prehensive statement of the Postal ity of the Postal Service to borrow Service to Congress under 39 U.S.C. money under 39 U.S.C. 2005, except for 2401(g). short-term borrowings, having matu- (u) Approval and transmittal to the rities of one year or less, assumed in Congress of the semi-annual report of the normal course of business. the Postmaster General under 39 U.S.C. (k) Approval of the terms and condi- 3013, summarizing the investigative actions of each series of obligations tivities of the Postal Service. issued by the Postal Service under 39 (v) Approval and transmittal to the U.S.C. 2005, including the time and President and the Congress of the Post- manner of sale and the underwriting al Service’s strategic plan pursuant to arrangements, except for short-term the Government Performance and Re- borrowings, having maturities of one sults Act of 1993, 39 U.S.C. 2802; ap- year or less, assumed in the normal proval of the Postal Service annual course of business. performance plan under 39 U.S.C. 2803 (l) Approval of any use of the author- and the Postal Service program per- ity of the Postal Service to require the formance report under 39 U.S.C. 2804, Secretary of the Treasury to purchase which are included in the comprehen- Postal Service obligations under 39 sive statement under 39 U.S.C. 2401. U.S.C. 2006(b), or to request the Sec- (w) All other matters that the Board retary of the Treasury to pledge the may consider appropriate to reserve for full faith and credit of the Government its decision. of the United States for the payment of [59 FR 18448, Apr. 18, 1994, as amended at 62 principal and interest on Postal Serv- FR 41853, Aug. 4, 1997; 62 FR 43642, Aug. 15, ice obligations under 39 U.S.C. 2006(c). 1997] (m) Determination of the number of officers, described in 39 U.S.C. 204 as § 3.4 Matters reserved for decision by Assistant Postmasters General, wheth- the Governors. er so denominated or not, as the Board The following matters are reserved authorizes by resolution. for decision by the Governors: (n) Compensation of officers of the (a) Appointment, pay, term of serv- Postal Service whose positions are in- ice, and removal of the Postmaster cluded in Level II of the Postal Career General, 39 U.S.C. 202(c). Executive Service. (b) Appointment, term of service, and (o) Selection of an independent, cer- removal of the Deputy Postmaster tified public accounting firm to certify General (by the Governors and the the accuracy of Postal Service finan- Postmaster General, 39 U.S.C. 202(d)); cial statements as required by 39 U.S.C. pay of the Deputy Postmaster General, 2008(e). 39 U.S.C. 202(d).

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(c) Election of the Chairman of the egories: (a) Mail volume by class; (b) Board of Governors, 39 U.S.C. 202(a). income and expense by principal cat- (d) Approval of the budget of the egories; (c) balance sheet information; Postal Rate Commission, or adjust- (d) service quality measurements; (e) ment of the total amount of the budget productivity measurements (reflecting (by unanimous written vote of the Gov- workload and resource utilization); and ernors in office, 39 U.S.C. 3604(d)). (f) changes in postal costs. These state- (e) Action upon a recommended deci- ments shall include, where applicable, sion of the Postal Rate Commission, comparable figures for the previous including action to approve, allow year and the current year’s plan. under protest, reject, or modify that decision, 39 U.S.C. 3625. § 3.7 Information furnished to Board— (f) Concurrence of the Governors with program review. the Postmaster General in the removal or transfer of the Chief Postal Inspec- (a) To enable the Board to review the tor under 5 U.S.C. App. 8E(f). Postal Service operating program, (g) The Governors shall meet annu- postal management shall furnish the ally in closed session to discuss com- Board information on all aspects of the pensation, term of service, and ap- Postal Service budget plan, including: pointment/removal of the Secretary (1) The tentative and final annual and other necessary staff. budgets submitted to the Office of (h) Transmittal to the Congress of Management and Budget and the Con- the semi-annual report of the Inspector gress, and amendments to the budget; General under section 5 of the Inspec- (2) Five-year plans, annual operating tor General Act. and investment plans, and significant (i) Establishment of the price of the departures from estimates upon which breast cancer research semipostal the plans were based; stamp under 39 U.S.C. 414. (3) The need for rate increases or de- (j) Establishment of the price of creases and the progress of any pending semipostal stamps under 39 U.S.C. 416. rate cases and related litigation; and [59 FR 18448, Apr. 18, 1994, as amended at 62 (4) Debt financing needs, including a FR 41853, Aug. 4, 1997; 63 FR 28485, May 26, review of all borrowings of the Postal 1998; 67 FR 2135, Jan. 16, 2002] Service from the U.S. Treasury and private sources. § 3.5 Delegation of authority by Board. (b) To enable the Board to review the As authorized by 39 U.S.C. 402, these effectiveness of the Postal Service’s bylaws delegate to the Postmaster equal employment opportunity pro- General the authority to exercise the gram, performance data relating to powers of the Postal Service to the ex- this program shall be furnished to the tent that this delegation of authority Board at least quarterly. This data does not conflict with powers reserved shall be categorized in such manner as to the Governors or to the Board by the Board, from time to time, specifies. law, these bylaws, or resolutions adopt- (c) Postal management shall also ed by the Board. Any of the powers del- regularly furnish the Board informa- egated to the Postmaster General by tion regarding major programs for im- these bylaws may be redelegated by the proving postal service or reducing the Postmaster General to any officer, employee, or agency of the Postal Service. cost of postal operations. (d) Management shall furnish to the § 3.6 Information furnished to Board— Board: financial and operating reports. (1) Information regarding any signifi- To enable the Board to monitor the cant, new program, policy, major modi- performance of the Postal Service dur- fication or initiative; any plan to offer ing the most recent accounting periods a significant, new or unique product or for which data are available, postal system implementation; or any signifi- management shall furnish the Board cant, new project not related directly (on a monthly basis) financial and op- to the core business function of the erating statements for the fiscal year Postal Service. This information shall to date, addressing the following cat- be provided to the Board in advance of

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entering into any agreement in fur- tual properties (other than patents and therance of such project. For the pur- technical data rights), or any proposed poses of this paragraph, ‘‘significant’’ joint venture involving the use of such means a project anticipated to have a property. notable or conspicuous impact on (i) (f) Other matters having important corporate visibility or (ii) the oper- policy implications. ating budget (including increases in expense amounts) or the capital investment budget. The notification require- PART 4—OFFICERS (ARTICLE IV) ment of this paragraph governs applicable projects regardless of the level of Sec. expenditure involved. 4.1 Chairman. (2) Information regarding any 4.2 Vice Chairman. project, in advance of entering into any 4.3 Postmaster General. agreement in furtherance of such 4.4 Deputy Postmaster General. project, where the potential liability 4.5 Assistant Postmasters General, General Counsel, Judicial Officer, Chief Postal due to termination, breach, or other Inspector. reason would equal or exceed the 4.6 Secretary of the Board. amount specified by resolution for approval of capital investment projects AUTHORITY: 39 U.S.C. 202–205, 401(2), (10), pursuant to section 3.3(e) hereof. 402, 1003, 3013. [59 FR 18448, Apr. 18, 1994, as amended 62 FR SOURCE: 59 FR 18450, Apr. 18, 1994, unless 18519, Apr. 16, 1997] otherwise noted.

§ 3.8 Information furnished to Board— § 4.1 Chairman. special reports. (a) The Chairman of the Board of To insure that the Board receives sig- Governors is elected by the Governors nificant information of developments from among the members of the Board. meriting its attention, postal manage- The Chairman: ment shall bring to the Board’s atten- (1) Shall preside at all regular and tion the following matters: special meetings of the Board, and (a) Major developments in personnel shall set the agenda for such meetings; areas, including but not limited to (2) Shall select and appoint the equal employment opportunity, career Chairman and members of any com- development and training, and grade mittee properly established by the and salary structures. Board; (b) Major litigation activities. Postal (3) Serves a term that commences management shall also notify the upon election and expires at the end of Board in a timely manner whenever it the first annual meeting following the proposes to seek review by any United meeting at which he or she was elected. States Court of Appeals of an adverse (b) If the Postmaster General is judicial decision. (c) Any significant changes proposed elected Chairman of the Board, the in the Postal Service’s system of ac- Governors shall also elect one of their counts or methods of accounting. number to preside during proceedings (d) Matters of special importance, in- dealing with matters upon which only cluding but not limited to important the Governors may vote. research and development initiatives, major changes in Postal Service orga- § 4.2 Vice Chairman. nization or structure, major law en- The Vice Chairman is elected by the forcement activities, and other matters Board from among the members of the having a significant impact upon the Board and shall perform the duties and relationship of the Postal Service with exercise the powers of the Chairman its employees, with any major branch during the Chairman’s absence or dis- of Government, or with the general ability. The Vice Chairman serves a public. term that commences upon election (e) Information concerning any pro- and expires at the end of the first an- posed grant of unique or exclusive li- nual meeting following the meeting at censes to use Postal Service intellec- which he or she was elected.

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§ 4.3 Postmaster General. these meetings, and take steps nec- The appointment and role of the essary for compliance with all statutes Postmaster General are described at 39 and regulations dealing with public ob- U.S.C. 202(c), 203. The Governors set the servation of meetings. The Secretary salary of the Postmaster General by shall perform all those duties incident resolution, subject to the limitations to this office, including those duties as- of 39 U.S.C. 1003(a). signed by the Board or by the Chair- man of the Board. The Chairman may § 4.4 Deputy Postmaster General. designate such assistant secretaries as may be necessary to perform any of the The appointment and role of the Dep- duties of the Secretary. uty Postmaster General are described at 39 U.S.C. 202(d), 203. The Deputy [59 FR 18450, Apr. 18, 1994. Redesignated at 62 Postmaster General shall act as Post- FR 61914, Nov. 20, 1997] master General during the Postmaster General’s absence or disability, and PART 5—COMMITTEES (ARTICLE V) when a vacancy exists in the office of Postmaster General. The Governors set Sec. the salary of the Deputy Postmaster 5.1 Establishment and appointment. General by resolution, subject to the 5.2 Committee procedure. limitations of 39 U.S.C. 1003(a). AUTHORITY: 39 U.S.C. 202, 203, 204, 205, 401(2), (10), 1003, 3013. § 4.5 Assistant Postmasters General, General Counsel, Judicial Officer, SOURCE: 59 FR 18450, Apr. 18, 1994, unless Chief Postal Inspector. otherwise noted. There are within the Postal Service a § 5.1 Establishment and appointment. General Counsel, a Judicial Officer, a From time to time the Board may es- Chief Postal Inspector, and such num- tablish by resolution special and stand- ber of officers, described in 39 U.S.C. ing committees of one or more mem- 204 as Assistant Postmasters General, bers of the Board. The Board shall whether so denominated or not, as the specify, in the resolution establishing Board authorizes by resolution. These any committee, whether the com- officers are appointed by, and serve at mittee is authorized to submit rec- the pleasure of, the Postmaster Gen- ommendations or preliminary deci- eral. The Chief Postal Inspector shall sions to the Board, to conduct hearings report to, and be under the general su- for the Board, or otherwise to take ac- pervision of, the Postmaster General. tion on behalf of the Board. Each com- The Postmaster General shall prompt- mittee may exercise only those duties, ly notify the Governors and both functions, and powers prescribed from Houses of Congress in writing if he or time to time by the Board, and the she removes the Chief Postal Inspector Board may affirm, alter, or revoke any or transfers the Chief Postal Inspector action of any committee. Each member to another position or location within of the Board may have access to all of the Postal Service, and shall include in the information and records of any any such notification the reasons for committee at any time. The Chairman such removal or transfer. of the Board shall appoint the chair- [62 FR 61914, Nov. 20, 1997] man and members of each committee, who serve terms which expire at the § 4.6 Secretary of the Board. end of each annual meeting. Each com- The Secretary of the Board of Gov- mittee chairman may assign respon- ernors is appointed by the Governors sibilities to members of the committee and serves at the pleasure of the Gov- that are considered appropriate. The ernors. The Secretary shall be respon- committee chairman, or the chair- sible for carrying out the functions of man’s designee, shall preside at all the Office of the Board of Governors, meetings of the committee. under the direction of the Chairman of the Board. The Secretary shall also § 5.2 Committee procedure. issue notices of meetings of the Board Each committee establishes its own and its committees, keep minutes of rules of procedure, consistent with

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these bylaws, and meets as provided in § 6.3 Notice of meetings. its rules. A majority of the members of The Chairman or the members of the a committee constitute a quorum. Board may give the notice required [61 FR 36499, July 11, 1996] under § 6.1 or § 6.2 of these bylaws in oral or written form. Oral notice to a PART 6—MEETINGS (ARTICLE VI) member may be delivered by telephone and is sufficient if made to the member personally or to a responsible person in Sec. the member’s home or office. Any oral 6.1 Regular meetings, annual meeting. notice to a member must be subse- 6.2 Special meetings. quently confirmed by written notice. 6.3 Notice of meetings. Written notice to a member may be de- 6.4 Attendance by conference telephone call. livered by telegram or by mail sent by 6.5 Minutes of meetings. the fastest regular delivery method ad- 6.6 Quorum and voting. dressed to the member’s address of record filed with the Secretary, and ex- AUTHORITY: 39 U.S.C. 202, 205, 401(2), (10), cept for written notice confirming a 1003, 3013; 5 U.S.C 552b (e), (g). previous oral notice, must be sent in SOURCE: 59 FR 18451, Apr. 18, 1994, unless sufficient time to reach that address at otherwise noted. least 2 days before the meeting date under normal delivery conditions. A § 6.1 Regular meetings, annual meet- member waives notice of any meeting ing. by attending the meeting, and may The Board shall meet regularly each otherwise waive notice of any meeting month and shall meet normally on the at any time. Neither oral nor written first Monday and Tuesday of each notice to the Secretary is sufficient month. The first regular meeting of until actually received by the Sec- each calendar year is designated as the retary. The Secretary may not waive annual meeting. Consistent with the notice of any meeting. provisions of § 7.5 of these bylaws, the § 6.4 Attendance by conference tele- time or place of a regular or annual phone call. meeting may be varied by recorded vote, with the earliest practicable no- Unless prohibited by law or by these tice to the Secretary. The Secretary bylaws, a member of the Board may shall distribute to the members an participate in a meeting of the Board agenda setting forth the proposed sub- by conference telephone or similar communications equipment which en- ject matter for any regular or annual ables all persons participating in the meeting in advance of the meeting. meeting to hear each other and which [68 FR 28773, May 27, 2003] permits full compliance with the provisions of these bylaws concerning public § 6.2 Special meetings. observation of meetings. Attendance at Consistent with the provisions of § 7.5 a meeting by this method constitutes of these bylaws, the Chairman may call presence at the meeting; and no Gov- a special meeting of the Board at any ernor attending by telephone may replace in the United States, with not ceive compensation, except for a spe- less than 8 days’ notice to the other cial meeting by conference telephone members of the Board and to the Sec- that is more than one hour in duration, retary, specifying the time, date, place, or a special committee meeting between Board meetings called under § 6.2 and subject matter of the meeting. By of these bylaws. recorded vote a majority of the members of the Board may call a special [63 FR 57912, Oct. 29, 1998] meeting of the Board at any place in the United States, with the earliest § 6.5 Minutes of meetings. practicable notice to the other mem- The Secretary shall preserve the bers of the Board and to the Secretary, minutes of Board meetings prepared specifying the time, date, place and under § 4.7 of these bylaws. After the subject matter of the meeting. minutes of any meeting are approved

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by the Board, the Secretary shall majority of the entire membership of promptly make available to the public, the Board; and in the Communications Department at (h) In the decision to call a meeting Postal Service Headquarters, or in an- with less than a week’s notice, 5 U.S.C. other place easily accessible to the 552b(e)(1) requires a vote of a majority public, copies of the minutes, except of the members of the Board. In the de- for those portions which contain infor- cision to change the subject matter of mation inappropriate for public disclo- a meeting, or the determination to sure under 5 U.S.C. 552(b) or 39 U.S.C. open or close a meeting, 5 U.S.C. 410(c). 552b(e)(2) requires a vote of a majority of the entire membership of the Board. § 6.6 Quorum and voting. As provided by 39 U.S.C. 205(c), the PART 7—PUBLIC OBSERVATION Board acts by resolution upon a major- (ARTICLE VII) ity vote of those members who are present. No proxies are allowed in any Sec. vote of the members of the Board. Any 7.1 Definitions. 6 members constitute a quorum for the 7.2 Open meetings. transaction of business by the Board, 7.3 Exceptions. except: 7.4 Procedure for closing a meeting. (a) In the appointment or removal of 7.5 Public notice of meetings, subsequent the Postmaster General, and in setting changes. the compensation of the Postmaster 7.6 Certification and transcripts of closed General and Deputy Postmaster Gen- meetings. eral, 39 U.S.C. 205(c)(1) requires a favor- 7.7 Enforcement. able vote of an absolute majority of the 7.8 Open meetings, Freedom of Information, Governors in office; and Privacy of Information. (b) In the appointment or removal of AUTHORITY: 39 U.S.C. 401(a), as enacted by the Deputy Postmaster General, 39 Pub. L. 91–375, and 5 U.S.C. 552b(a)–(m) as en- U.S.C. 205(c)(2) requires a favorable acted by Pub. L. 94–409. vote of an absolute majority of the SOURCE: 59 FR 18451, Apr. 18, 1994, unless Governors in office and the Postmaster otherwise noted. General; (c) In the appointment, removal, or § 7.1 Definitions. in the setting of the compensation of For purposes of §§ 7.2 through 7.8 of the Secretary, Assistant Secretary, or these bylaws: other necessary staff, a favorable vote (a) The term Board means the Board of an absolute majority of the Gov- of Governors, and any subdivision or ernors in office is required; committee of the Board authorized to (d) In the adjustment of the total take action on behalf of the Board. budget of the Postal Rate Commission, (b) The term meeting means the delib- 39 U.S.C. 3604(c) requires a unanimous erations of at least the number of indi- written vote of the Governors in office; vidual members required to take ac- (e) In the modification of a rection on behalf of the Board under § 5.2 ommended decision of the Postal Rate or § 6.5 of these bylaws, where such de- Commission, 39 U.S.C. 3625 requires a liberations determine or result in the unanimous written vote of the Gov- joint conduct or disposition of the offi- ernors in office; and cial business of the Board. The term (f) In the approval, allowance under ‘‘meeting’’ does not include any proce- protest, or rejection of a recommended dural deliberations required or per- decision of the Postal Rate Commis- mitted by §§ 6.1, 6.2, 7.4, or § 7.5 of these sion, the Governors act upon a major- bylaws. ity vote of the Governors present, and the required quorum of 6 members [59 FR 18451, Apr. 18, 1994, as amended at 61 must include at least 5 Governors; FR 36499, July 11, 1996] (g) In the determination to close a portion of a meeting or to withhold in- § 7.2 Open meetings. formation concerning a meeting, 5 (a) It is the policy of the United U.S.C. 552b(d)(1) requires a vote of a States, established in section 2 of the

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Government in the Sunshine Act, Pub- defense or foreign policy, and (2) in fact lic Law 94–409, 90 Stat. 1241, that the properly classified under that Execu- public is entitled to the fullest prac- tive 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 (1) requires that the mat- of Governors is open to public observa- ters be withheld from the public in tion. such a manner as to leave no discretion (b) Except as provided in § 7.3 of these on the issue, or (2) establishes par- bylaws, every portion of every meeting ticular criteria for withholding or re- of the Board is open to public observa- fers to particular types of matters to tion. Members of the Board may not be withheld; jointly conduct or dispose of business (d) Disclose trade secrets and com- of the Board without complying with mercial or financial information ob- §§ 7.2 through 7.8 of these bylaws. Mem- tained from a person and privileged or bers of the public may obtain access to confidential, such as market informa- documents considered at meetings to tion pertinent to Postal Service bor- the extent provided in the regulations rowing or investments, technical or of the Postal Service concerning the patent information related to postal release of information. (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 232.6, concerning con- compiled for law enforcement purposes, duct on postal property, apply with re- or information which if written would gard 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 (1) Section 7.2 of these bylaws does not interfere with enforcement pro- apply to a portion of a meeting, and ceedings, (2) deprive a person of a right §§ 7.4 and 7.5 do not apply to informa- to a fair trial or an impartial adjudication concerning the meeting which oth- tion, (3) constitute an unwarranted in- erwise would be required to be dis- vasion of personal privacy, (4) disclose closed to the public, if the Board prop- the identity of a confidential source erly determines that the public inter- and, in the case of a record compiled by est does not require otherwise, and a criminal law enforcement authority that such portion of the meeting or the in the course of a criminal investiga- disclosure of such information is likely tion, or by an agency conducting a law- to: ful national security intelligence in- (a) Disclose matters that are (1) spe- vestigation, confidential information cifically authorized under criteria es- furnished only by the confidential tablished by an Executive order to be source, (5) disclose investigative tech- kept secret in the interests of national niques and procedures, or (6) endanger

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the life or physical safety of law en- meeting in the series involves the same forcement 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 dis- vote under paragraph (a) or (b) of this closed to the public the content or na- section. Within 1 day of any vote under ture of the proposed action, or (2) the paragraph (a) or (b) of this section, the Postal Service is required by law to Secretary shall make publicly avail- make such disclosure on its own initia- able a written copy of the vote showing tive before taking final action on the the vote of each member on the ques- proposal; or tion. If a portion of a meeting is to be (j) Specifically concern the issuance closed to the public, the Secretary of a subpoena by the Postal Service, or shall, within 1 day of the vote, make the participation of the Postal Service publicly available a full written explain a civil action or proceeding, such as nation of the action closing the por- a postal rate or classification pro- tion, together with a list of all persons ceeding, an action in a foreign court or expected to attend the meeting and international tribunal, or an arbitra- their affiliation. tion, or the initiation, conduct, or disposition by the Postal Service of a par- [59 FR 18451, Apr. 18, 1994, as amended at 62 ticular case of formal adjudication FR 4459, Jan. 30, 1997] under the procedures of 5 U.S.C. 554 or otherwise involving a determination on § 7.5 Public notice of meetings, subsequent changes. the record after opportunity for a hearing. (a) At least one week before any meeting of the Board, the Secretary § 7.4 Procedure for closing a meeting. shall publicly announce the time, date, (a) A majority of the entire member- place, and subject matter of the meet- ship of the Board may vote to close a ing, whether it is to be open or closed portion of a meeting or to withhold in- to the public, and the name and phone formation concerning a meeting under number of the official designated by the provisions of § 7.3 of these bylaws. the Board to respond to requests for in- The members shall take a separate formation about the meeting. vote with respect to each meeting a (b) By a recorded vote, a majority of portion of which is proposed to be the members of the Board may deter- closed to the public, or with respect to mine that the business of the Board re- any information which is proposed to quires a meeting to be called with less be withheld, and shall make every rea- than a week’s notice. At the earliest sonable effort to take any such vote at practicable time, the Secretary shall least 8 days before the date of the publicly announce the time, date, meeting involved. The members may place, and subject matter of the meet- take a single vote with respect to a se- ing, and whether it is to be open or ries of meetings, portions of which are closed to the public. proposed to be closed to the public, or (c) Following the public announce- with respect to information concerning ment required by paragraphs (a) or (b) the series, so long as each portion of a of this section:

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

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finds that he initiated the suit pri- a balance between, on the one hand, marily for frivolous or dilatory pur- the need to safeguard the integrity of poses. the administrative process for setting rates and classifications and insure § 7.8 Open meetings, Freedom of Infor- meaningful judicial review of decisions mation, and Privacy of Information. of the Governors on these subjects, and The provisions of 5 U.S.C. 552b(c) (1)– on the other hand, the need for open (10), enacted by Public Law 94–409, the access to the Board to permit the mem- Government in the Sunshine Act, gov- bers to meet their statutory respon- ern in the case of any request under sibilities. To strike an appropriate bal- the Freedom of Information Act, 5 ance, the Board has adopted the fol- U.S.C. 552, to copy or to inspect the lowing general guidelines: From the transcripts or electronic recordings de- time the Postal Rate Commission scribed in § 7.6 of these bylaws. Nothing issues a recommended decision until in 5 U.S.C. 552b authorizes the Board to the Governors have acted on the rec- withhold from any individual any ommended decision, any communica- record, including the transcripts or tion from an interested person to the electronic recordings described in § 7.6 Governors that is relevant to the mer- of these bylaws, to which the indi- its of the proceeding should be on the vidual may otherwise have access public record and available for public under 5 U.S.C. 552a, enacted by the Pri- inspection. vacy Act of 1974, Public Law 93–579. (b) In reviewing recommended decisions of the Commission, the Governors PART 8 [RESERVED] act on the record before them. They are under no obligation to take com- PART 9—POLICY ON COMMU- munications from the public into ac- NICATIONS WITH GOVERNORS count in reaching their decision. OF THE POSTAL SERVICE DURING § 9.2 Communications with the Gov- PENDENCY OF RATE AND CLAS- ernors during the restricted period. SIFICATION PROCEEDINGS [APPENDIX] Once the Commission issues a recommended decision, and until the Gov- Sec. ernors have acted on that rec- 9.1 General policy. ommended decision by approving, re- 9.2 Communications with the Governors jecting, allowing under protest or during the restricted period. modifying it, the following guidelines 9.3 Public availability of communications. apply to communications with the AUTHORITY: 39 U.S.C. 202, 203, 205, 401 (2), Governors that are relevant to the (10), 3621, 3625. merits of the proceeding.

SOURCE: 49 FR 2888, Jan. 24, 1984, unless (a) Oral communications. During the otherwise noted. restricted period, it is the policy of the Governors not to receive oral commu- § 9.1 General policy. nications relevant to the merits of the (a) To represent the public interest proceeding from any interested person. generally and to insure that the Postal In the event such a conversation does Service meets the needs of the mailing inadvertently take place, the Governor public, the Governors must be free to involved shall prepare a memorandum hold uninhibited discussions on broad of the conversation and submit it to postal issues with mailers and the gen- the Secretary of the Board for inclu- eral public. Nevertheless, the Gov- sion in the public record, where it shall ernors believe that certain restrictions be available for public inspection. on communications with the public are (b) Written communications. (1) During appropriate when the Governors act in the restricted period any communica- their capacity as final administrative tion relevant to the merits of the pro- decisionmakers on recommended deci- ceeding that an interested person may sions of the Postal Rate Commission wish to submit to the Governors must concerning postal rates and classifica- be in writing and should not exceed fif- tions. These restrictions should reflect teen pages in length. Such comments

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should be based on the record and ad- PART 10—RULES OF CONDUCT FOR dressed to the Governors through the POSTAL SERVICE GOVERNORS Secretary of the Board. If the com- [APPENDIX] menter has been a party to the Com- mission proceeding, copies should be Sec. sent to all other parties to that pro- 10.1 Applicability. ceeding. The Secretary shall make all 10.2 Advisory service. such communications available for 10.3 Post-employment activities. 10.4 Financial disclosure reports. public inspection. (2) Because the Governors are often AUTHORITY: 39 U.S.C. 401. required to act promptly on a rec- SOURCE: 52 FR 29697, Aug. 11, 1987, unless ommended decision from the Commis- otherwise noted. sion, interested persons seeking to § 10.1 Applicability. communicate with the Governors should submit their comments no later This part contains rules of conduct than ten (10) days after the Commis- for the members of the Board of Gov- sion has issued its recommended deci- ernors of the United States Postal sion. This period may be extended at Service. As special employees within the meaning of 18 U.S.C. 202(a), the the discretion of the Governors. members of the Board are also subject (c) Scope of the guidelines. These to the Standards of Ethical Conduct for guidelines apply to communications Employees of the Executive Branch, 5 from interested persons to the Gov- CFR part 2635, and Postal Service regu- ernors, their staff, personal assistants lations supplemental thereto, 5 CFR (if any), the Secretary of the Board and part 7001. any official of the Office of the Board. Since the Act assigns final decision- [61 FR 36499, July 11, 1996] making authority on Commission rec- § 10.2 Advisory service. ommended decisions to the Governors (a) The General Counsel is the Eth- and not the Board, these guidelines do ical Conduct Officer of the Postal Serv- not apply to the Postmaster General or ice and the Designated Agency Ethics the Deputy Postmaster General, nor do Official for purposes of the Ethics in they apply to other officers or officials Government Act, as amended, and the of the Postal Service. Moreover, in implementing regulations of the Office order to carry out their statutory re- of Government Ethics, including 5 CFR sponsibility to direct ‘‘the exercise of part 2638. the power of the Postal Service,’’ 39 (b) A Governor may obtain advice U.S.C. 202(a), the Governors must be and guidance on questions of conflicts free to discuss all matters of postal of interest, and may request any ruling policy with officers and employees of provided for by either the Standards of the Postal Service. Accordingly, no re- Ethical Conduct for Employees of the strictions apply to communications be- Executive Branch, or the Postal Serv- tween the Governors and Postal Serv- ice regulations supplemental thereto, ice employees. from the General Counsel or a designated assistant. § 9.3 Public availability of communica- (c) If the General Counsel determines tions. that a Governor is engaged in activity which involves a violation of federal All communications placed on the statute or regulation, including the public record pursuant to these guide- ethical conduct regulations contained lines shall be available for public in- in 5 CFR parts 2635 and 7001, or conduct spection at the Office of the Board of which creates the appearance of such a Governors, United States Postal Serv- violation, he or she shall bring this to ice, Room 10–300, 475 L’Enfant Plaza the attention of the Governor or shall West, SW., Washington, DC 20260–1000, notify the Chairman of the Board of between 8:30 a.m. and 4:30 p.m., Monday Governors, or the Vice Chairman, as through Friday except Federal holi- appropriate. days. [61 FR 36499, July 11, 1996]

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§ 10.3 Post-employment activities. filing, be reviewed by the General Governors are subject to the restric- Counsel who shall either approve the tions on the post-employment activi- report, or make an initial determina- ties of special Government employees tion that a conflict or appearance imposed by 18 U.S.C. 207. Guidance con- thereof exists. If the General Counsel cerning post-employment restrictions determines initially that a conflict or applicable to Governors may be ob- the appearance of a conflict exists, he tained in accordance with § 10.2(b). or she shall inform the Governor of his determination. [61 FR 36500, July 11, 1996] (2) If the General Counsel considers § 10.4 Financial disclosure reports. that additional information is needed to complete the report or to allow an (a) Requirement of submission of reports. At the time of their nomination, adequate review to be conducted, he or Governors complete a financial disclo- she shall request the reporting Gov- sure report which, under the practice ernor to furnish that information by a of the Senate Governmental Affairs specified date. Committee, is kept confidential. Be- (3) The General Counsel shall refer to cause the Director of the Office of Gov- the Chairman of the Board of Gov- ernment Ethics has ruled that Gov- ernors or the Vice Chairman the name ernors who do not perform the duties of of any Governor he or she has reason- their office for more than 60 days in able cause to believe has wrongfully any calendar year are not required to failed to file a report or has falsified or file financial disclosure reports that wrongfully failed to report required in- are open to the public, Governors file formation. non-public reports annually, in accord- (e) Custody of and public access to ance with this section. A Governor who reports—(1) Retention of reports. Each re- performs the duties of his or her office port filed with the General Counsel for more than 60 days in a particular shall be retained by him or her for a calendar year is required to file a pub- period of six years. After the six-year lic report in accordance with 5 CFR period, the report shall be destroyed 2634.204(c). unless needed in connection with an in- (b) Person with whom reports should be vestigation then pending. filed and time for filing. (1) A Governor shall file a financial disclosure report (2) Confidentiality of reports. Unless a with the General Counsel on or before public report is required by this sec- May 15 of each year when the Governor tion, the financial disclosure reports has been in office for more than 60 con- filed by Governors shall not be made secutive calendar days during the pre- public. vious year. [52 FR 29697, Aug. 11, 1987. Redesignated and (2) The General Counsel may, for amended at 61 FR 36500, July 11, 1996] good cause shown, grant to a Governor an extension of up to 45 days. An additional extension of up to 45 days may PART 11—ADVISORY BOARDS be granted by the Director of the Office [ARTICLE XI] of Government Ethics for good cause shown. AUTHORITY: 39 U.S.C. 202, 203, 204, 205, (c) Information required to be reported. 401(2), (10), 402, 403, 1003, 3013, 5 U.S.C. 552b(a), Each report shall be a full and com- (b) (g). plete statement, on the form prescribed by the General Counsel and the Office § 11.1 Establishment. of Government Ethics and in accord- The Board of Governors may create ance with instructions issued by him or such advisory boards as it may deem her. The form currently in use is appropriate and may appoint persons Standard Form 278. to serve thereon or may delegate such (d) Reviewing reports. (1) Financial latter authority to the Postmaster disclosure reports filed in accordance General. with the provisions of this section shall, within 60 days after the date of [59 FR 18454, Apr. 18, 1994]

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PART 20—INTERNATIONAL POSTAL normal business hours. Regional offices SERVICE are located in Philadelphia, Memphis, Chicago, San Bruno, and Windsor, CT. Sec. (b) A copy of the International Mail 20.1 The International Mail Manual; incor- Manual, together with each amend- poration by reference of international ment of it, is on file with the Director, mail regulations. Office of the Federal Register, National 20.2 Availability of the International Mail Archives and Records Administration, Manual. at 800 North Capitol Street, NW., suite 20.3 Amendments to the International Mail 700, Washington, DC. Manual. (c) Copies of the International Mail 20.4 Approval of the Director of the Federal Manual may be purchased from the Su- Register. perintendent of Documents, Wash- 20.5 Contents of the International Mail Manual. ington, DC 20402–9371 for $14.00. This price covers two complete issues of the AUTHORITY: 5 U.S.C. 552(a), 39 U.S.C. 401, International Mail Manual. Informa- 404, 407, 408. tion about international mail also ap- SOURCE: 47 FR 7831, Feb. 23, 1982, unless pears in condensed form in Publication otherwise noted. Redesignated at 52 FR 29697, 51, which the Postal Service publishes Aug. 11, 1987. and distributes to all post offices and area supply centers. This publication is § 20.1 The International Mail Manual; available to the public free of charge at incorporation by reference of international mail regulations. all post offices and classified stations and branches. Section 552(a) of title 5, United States Code, relating to the public in- [47 FR 7831, Feb. 23, 1982. Redesignated at 52 formation requirements of the Admin- FR 29697, Aug. 11, 1987, as amended at 53 FR 52697, Dec. 29, 1988; 54 FR 1050, Jan. 11, 1989] istrative Procedure Act, provides in pertinent part that ‘‘* * * matter rea- § 20.3 Amendments to the Inter- sonably available to the class of per- national Mail Manual. sons affected thereby is deemed pub- (a) Except for interim or final regula- lished in the FEDERAL REGISTER when tions published as provided in para- incorporated by reference therein with graph (b) of this section, notices of the approval of the Director of the Fed- changes made in the International Mail eral Register.’’ In conformity with that Manual will periodically be published provision, and with 39 U.S.C. 410(b)(1), in the Federal Register. A complete and as provided in this part, the United issue of the International Mail Manual, States Postal Service hereby incor- including the text of all changes pub- porates by reference in this part, the lished to date, will be filed with the Di- International Mail Manual, a looseleaf rector, Office of the Federal Register. publication published and maintained Subscribers to the International Mail by the U.S. Postal Service, Wash- Manual will automatically receive the ington, DC 20260–5365. latest issue of the International Mail [47 FR 7831, Feb. 23, 1982. Redesignated at 52 Manual from the Government Printing FR 29697, Aug. 11, 1987, as amended at 53 FR Office. 52697, Dec. 29, 1988] (b) When the Postal Service invites comment from the general public on a § 20.2 Availability of the International proposed change to the International Mail Manual. Mail Manual, the proposed change and, (a) Copies of the International Mail if adopted, the interim or final regula- Manual are available for reference and tion will be published in the FEDERAL inspection upon request at the Na- REGISTER. tional Headquarters and regional of- (c) Interim or final regulations pub- fices of the U.S. Postal Service and at lished as provided in paragraph (b) of all United States Post Offices and clas- this section, and other changes to the sified stations and branches during International Mail Manual, adopted

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subsequent to the notices published (2) Subchapter 120—Preparation for Mailing under paragraph (a) of this section (ex- (i) Part 121—Packaging—Sender’s Respon- cept for corrections of minor errors or sibility other nonsubstantive changes), are (ii) Part 122—Addressing published in the Postal Bulletin, a (iii) Part 123—Customs Forms Required weekly postal publication that may be (3) Subchapter 130—Mailability purchased from the Superintendent of Documents, Washington, DC 20402–9371. (i) Part 131—General (d) Interim regulations will be pub- (ii) Part 132—Written, Printed, and Graph- lished in full text or referenced, as ap- ic Matter propriate, in the International Mail (iii) Part 133—Improperly Addressed Mail (iv) Part 134—Valuable Articles Manual at the place where they would (v) Part 135—Animals and Plants appear if they become final regula- (vi) Part 136—Special Packaging Require- tions. ments (e) For references to amendments to (vii) Part 137—Perishable Biological Sub- the International Mail Manual adopted stances under paragraph (b) of this section sub- (viii) Part 138—Radioactive Materials sequent to issuance of the most recent (ix) Part 139—Dangerous Materials transmittal letter listed below, see (4) Subchapter 140—International Mail Classes § 10.3 in the List of CFR Sections Af- fected at the end of this volume. (i) Part 141—Definitions (ii) Part 142—Size Limits (iii) Part 143—Envelope and Card Specifica- Transmittal let- Dated FR publication ter for issue tions (iv) Part 144—Official Mail 1 ...... Nov. 13, 1981 ...... 47 FR 7831. 2 ...... Mar. 1, 1983 ...... 48 FR 28268. (v) Part 145—Air Service 3 ...... July 4, 1985 ...... 50 FR 49387. 4 ...... Sept. 18, 1986 ...... 52 FR 3226. (5) Subchapter 150—Postage 5 ...... April 21, 1988 ...... 53 FR 24068. (i) Part 151—Postage Rates (ii) Part 152—Payment Methods [47 FR 7831, Feb. 23, 1982, as amended at 48 (iii) Part 153—Placement of Postage FR 28268, June 21, 1983; 50 FR 49387, Dec. 2, (iv) Part 154—Postage for Combination 1985; 52 FR 3226, Feb. 3, 1987; 53 FR 24068, Pieces June 27, 1988; 53 FR 24830, June 30, 1988; 53 FR (v) Part 155—Remailed Items 52697, Dec. 29, 1988; 54 FR 1050, Jan. 11, 1989] (B) CHAPTER 2—CONDITIONS FOR MAILING

§ 20.4 Approval of the Director of the (1) Subchapter 210—Express Mail International Federal Register. Service Incorporation by reference of the (i) Part 211—Description publication now titled the Inter- (ii) Part 212—Postage national Mail Manual was approved by (iii) Part 213—Weight and Size Limits the Director of the Federal Register (iv) Part 214—Preparation Requirements under 5 U.S.C. 552(a) and 1 CFR Part 51 on June 24, 1981. (2) Subchapter 220—Letters and Letter Packages (i) Part 221—Description [49 FR 47389, Dec. 4, 1984] (ii) Part 222—Postage § 20.5 Contents of the International (iii) Part 223—Weight and Size Limits Mail Manual. (iv) Part 224—Preparation Requirements The International Mail Manual con- (3) Subchapter 230—Postcards and Aerogrammes tains the following parts: (i) Part 231—Description (ii) Part 232—Postage Rates (A) CHAPTER 1—INTERNATIONAL MAIL (iii) Part 233—Weight and Size Limits SERVICES (iv) Part 234—Preparation Requirements (1) Subchapter 110—General Information (4) Subchapter 240—Printed Matter (i) Part 111—Scope (i) Part 241—Description (ii) Part 112—Mailer Responsibility (ii) Part 242—Postage (iii) Part 113—Individual Country Listings (iii) Part 243—Weight and Size Limits (ICLs) (iv) Part 244—Preparation Requirements (iv) Part 114—Availability (v) Part 245—Direct Sacks of Printed Mat- (v) Part 115—Official Correspondence ter to One Addressee (‘‘M’’ Bags)

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(5) Subchapter 250—Matter for the Blind (iv) Part 374—Processing Requests

(i) Part 251—Description (8) Subchapter 380—Special Handling (ii) Part 252—Postage Rates (iii) Part 253—Weight and Size Limits (i) Part 381—Description (iv) Part 254—Preparation Requirements (ii) Part 382—Availability (iii) Part 383—Fees (6) Subchapter 260—Small Packets (iv) Part 384—Processing Requests (i) Part 261—Description (9) Subchapter 390—Supplementary Services (ii) Part 262—Postage Rates (iii) Part 263—Weight and Size Limits (i) Part 391—International Postal Money (iv) Part 264—Preparation Requirements Orders (ii) Part 392—International Reply Coupons (7) Subchapter 270—Parcel Post (i) Part 271—Description (D) CHAPTER 4—TREATMENT OF OUTBOUND (ii) Part 272—Postage MAIL (iii) Part 273—Weight and Size Limits (1) Subchapter 410—Postmarking (iv) Part 274—Preparation Requirements (2) Subchapter 420—Shortpaid and Unpaid Mail (C) CHAPTER 3—SPECIAL SERVICES (i) Part 421—Check for Sufficient Postage (1) Subchapter 310—Certificate of Mailing (ii) Part 422—Unpaid Mail (i) Part 311—Description (iii) Part 423—Shortpaid Mail (ii) Part 312—Availability (3) Subchapter 430—Improperly Prepared Mail (iii) Part 313—Fees (iv) Part 314—Processing Requests (i) Part 431—Insufficient Address (ii) Part 432—Oversized or Undersized (2) Subchapter 320—Insurance Items (i) Part 321—Description (iii) Part 433—Oversized Cards (ii) Part 322—Availability (iv) Part 434—Reply-Paid Cards (iii) Part 323—Fees and Insured Value (4) Subchapter 440—Special Services Mail (iv) Part 324—Processing Requests (v) Part 325—Indemnity Claims and Pay- (i) Part 441—Registered Mail ments (ii) Part 442—Special Delivery (iii) Part 443—Special Handling (3) Subchapter 330—Registered Mail (i) Part 331—Description (5) Subchapter 450—Forwarding (ii) Part 332—Availability (E) CHAPTER 5—NONPOSTAL EXPORT (iii) Part 333—Fees and Indemnity Limit REGULATIONS (iv) Part 334—Processing Requests (v) Part 335—Indemnity Claims and Pay- (1) Subchapter 510 [Reserved] ments (2) Subchapter 520—Shipper’s Export (4) Subchapter 340—Return Receipt Declaration (i) Part 341—Description (i) Part 521—Description (ii) Part 342—Availability (ii) Part 522—When Required (iii) Part 343—Fee (iii) Part 523—How to obtain Commercial (iv) Part 344—Processing Requests Forms (iv) Part 524—How to Prepare Shipper’s Ex- (5) Subchapter 350—Restricted Delivery port Declaration (Commerce Form 7525–V) (i) Part 351—Description (v) Part 525—Handling and Disposal of (ii) Part 352—Availability Shipper’s Export Declaration (iii) Part 353—Fee (iv) Part 354—Processing Requests (3) Subchapter 530—Commodities and Technical Data (6) Subchapter 360—Recall/Change of Address (i) Part 531—Scope and Applicability of Li- (i) Part 361—Description censing Requirements (ii) Part 362—Conditions and Limitations (ii) Part 532—General Export Licenses (iii) Part 363—Fees and Charges (iii) Part 533—Validated Export Licenses (iv) Part 364—Processing Requests (4) Subchapter 540—Munitions and Related (7) Subchapter 370—Special Delivery Technical Data (i) Part 371—Description (i) Part 541—Licensing Requirements (ii) Part 372—Availability (ii) Part 542—Mailing Under Individual Li- (iii) Part 373—Fees censes

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(5) Subchapter 550—Dried Whole Eggs (ii) Part 762—Storage Charges

(i) Part 551—Description (7) Subchapter 770—Forwarding (ii) Part 552—Charges (iii) Part 553—How to Mail (i) Part 771—General Procedures (ii) Part 772—Mail of Domestic Origin (6) Subchapter 560—Tobacco Seeds and Tobacco (iii) Part 773—Items Mailed Aboard Ships Plants (Paquebot) (i) Part 561—Description (iv) Part 774—Mail of Foreign Origin (ii) Part 562—Charges (v) Part 775—Directory Service (iii) Part 563—How to Mail (8) Subchapter 780—Undeliverable Mail (7) Subchapter 570—Consular and Commercial Invoices (i) Part 781—Mail of Domestic Origin (ii) Part 782—Mail of Foreign Origin (8) Subchapter 580—Drawback Arrangement (i) Part 581—Description (9) Subchapter 790—Items Mailed Abroad by or (ii) Part 582—Processing Drawback Claims on Behalf of Senders in the U.S. (i) Part 791—Mailings Affected (F) CHAPTER 6 [RESERVED] (ii) Part 792—Postage Payment Required (G) CHAPTER 7—TREATMENT OF INBOUND MAIL (iii) Part 793—Advance Payment Required (iv) Part 794—Treatment if Advance Pay- (1) Subchapter 710—U.S. Customs Information ment Not Made (i) Part 711—Customs Examination of Mail (v) Part 795—Report of Mailings Believed to Contain Dutiable or Prohibited Articles (H) CHAPTER 8 [RESERVED] (ii) Part 712—Customs Clearance and Deliv- ery Fee (I) CHAPTER 9—INQUIRIES, INDEMNITIES AND (iii) Part 713—Treatment of Dutiable Mail REFUNDS at Delivery Office (1) Subchapter 910—Reports Encouraged (2) Subchapter 720—Plant and Animal Quarantine (2) Subchapter 920—Inquiries and Claims (i) Part 721—What is Subject to Inspection (i) Part 921—Inquiry Described (ii) Part 722—Segregation and Handling (ii) Part 922—Filing of Inquiries (iii) Part 723—Agriculture Inspection Sta- (iii) Part 923—Claim Described tions and Offices (iv) Part 924—Initiation of Claims (v) Part 925—Documents to Accompany (3) Subchapter 730—Shortpaid Mail to U.S.A. Claims (i) Part 731—Computation of Postage Due (vi) Part 926—Disposition of Damaged Mail (ii) Part 732—Shortpaid Letters and Cards (vii) Part 927—Charges for Inquiries From Canada (viii) Part 928—Processing Inquiries (iii) Part 733—Shortpaid Items Bearing U.S. Postage (3) Subchapter 930—Indemnity Payments (4) Subchapter 740—Irregular Mail (i) Part 931—Adjudication and Approval (ii) Part 932—General Exceptions to (i) Part 741—Invalid Foreign Postage Payment—Insured Parcel Post and Reg- (ii) Part 742—Unauthorized Letters En- istered Letter Post Mail closed (iii) Part 743—Stamps Not Affixed (iii) Part 933—Payments for Insured Parcel (iv) Part 744—Parcels Addressed Through Post Banks or Other Organizations (iv) Part 934—Payments for Registered (v) Part 745—Foreign Dispatch Notes Mail (v) Part 935—Payments for Express Mail (5) Subchapter 750—Special Services International Service

(i) Part 751—Insured Parcels (4) Subchapter 940—Postage Refunds (ii) Part 752—Registered Mail (iii) Part 753—Return Receipt (i) Part 941—Refunds for Postal Union Mail (iv) Part 754—Restricted Delivery and Parcel Post (v) Part 755—Special Delivery (ii) Part 942—Refunds for Express Mail (vi) Part 756—Recall and Change of Address International Service (iii) Part 943—Applications by Senders (6) Subchapter 760—Storage (iv) Part 944—Processing Refund Applica- (i) Part 761—Retention Period tions

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(J) APPENDIX A—WORLD MAP INDEX

(K) APPENDIX B—INDEX OF LOCALITIES

(L) APPENDIX C—CONVERSION TABLE: U.S. DOLLARS TO GOLD FRANCS (GFRS) AND TO SPECIAL DRAWING RIGHTS (SDRS)

(M) APPENDIX D—EXPRESS MAIL INTER- NATIONAL SERVICE (EMIS) COUNTRY LIST- INGS

(N) APPENDIX E—INTERNATIONAL SURFACE AIR LIFT NETWORK COUNTRIES AND RATES

(O) INDIVIDUAL COUNTRY LISTINGS (ICLS)

(P) INDEX

[50 FR 49387, Dec. 2, 1985]

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General Information on Postal DC. Copies of only the current issue are Service available during regular business hours for public inspection at area and district offices of the Postal Service and PART 111—GENERAL INFORMA- at all post offices, classified stations, TION ON POSTAL SERVICE and classified branches. (b) A copy of the current Domestic Sec. Mail Manual is on file with the Direc- 111.1 Domestic Mail Manual; incorporation by reference of regulations governing do- tor, Office of the Federal Register, Na- mestic mail services. tional Archives and Records Adminis- 111.2 Availability of the Domestic Mail tration, 800 North Capitol Street, NW, Manual. Suite 700, Washington, DC. 111.3 Amendments to the Domestic Mail (c) A 1-year subscription to the Do- Manual. mestic Mail Manual for two consecu- 111.4 Approval of the Director of the Fed- eral Register. tive issues can be purchased by the 111.5 Contents of the Domestic Mail Man- public from the Superintendent of Doc- ual. uments, Washington, DC 20402–9375. AUTHORITY: 5 U.S.C. 552(a); 39 U.S.C. 101, [62 FR 14827, Mar. 28, 1997] 401, 403, 414, 416, 3001–3011, 3201–3219, 3403–3406, 3621, 3626, 5001. § 111.3 Amendments to the Domestic SOURCE: 44 FR 39852, July 6, 1979, unless Mail Manual. otherwise noted. (a) Except for interim or final regulations published as provided in para- § 111.1 Domestic Mail Manual; incor- graph (b) of this section, only notices porated by reference of regulations governing domestic mail services. rather than complete text of changes made to the Domestic Mail Manual are Section 552(a) of title 5, U.S.C., relat- published in the FEDERAL REGISTER. ing to the public information require- These notices are published in the form ments of the Administrative Procedure of one summary transmittal letter for Act, provides in pertinent part that ‘‘* each issue of the Domestic Mail Man- * * matter reasonably available to the ual. A complete issue of the Domestic class of persons affected thereby is Mail Manual, including the text of all deemed published in the FEDERAL REG- changes published to date, will be filed ISTER when incorporated by reference with the Director, Office of the Federal therein with the approval of the Direc- Register. Subscribers to the Domestic tor of the Federal Register.’’ In con- Mail Manual receive the latest issue of formity with that provision, and with the Domestic Mail Manual from the 39 U.S.C. section 410(b)(1), and as pro- Government Printing Office. vided in this part, the U.S. Postal Serv- (b) When the Postal Service invites ice hereby incorporates by reference in comments from the public on a pro- this part, the Domestic Mail Manual, a posed change to the Domestic Mail looseleaf document published twice Manual, the proposed change and, if each year in January and July, unless adopted, the full text of the interim or otherwise determined by the Postal the final regulation is published in the Service. FEDERAL REGISTER. [62 FR 14827, Mar. 28, 1997] (c) The Postal Bulletin contains the full text of all interim and final regula- § 111.2 Availability of the Domestic tions published as provided in para- Mail Manual. graph (b) of this section, and the full (a) Copies of the Domestic Mail Man- text of all other changes to the Domes- ual, both current and previous issues, tic Mail Manual that are summarized are available during regular business in the notices published under para- hours for reference and public inspec- graph (a) of this section, except for tion at the U.S. Postal Service Library, nonsubstantive changes and correc- National Headquarters in Washington, tions of typographical errors. The

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Postal Bulletin is a biweekly document Transmittal letter for Dated Federal Register issued by the Postal Service to amend issue publication and revise policies and procedures. A 1- 32 ...... Sept. 17, 1989 .... 54 FR 37795. year subscription to the Postal Bul- 33 ...... Dec. 17, 1989 ..... 54 FR 50619. letin and certain back copies can be 34 ...... Mar. 18, 1990 ..... 55 FR 10061. 35 ...... June 17, 1990 ..... 55 FR 24561. purchased by the public from the Su- 36 ...... Sept. 16, 1990 .... 55 FR 40658. perintendent of Documents, Wash- 37 ...... Dec. 16, 1990 ..... 56 FR 1112. ington, DC 20402–9371. 38 ...... Feb. 24, 1991 ..... 56 FR 11513. (d) Interim regulations published in 39 ...... June 16, 1991 ..... 56 FR 56015 40 ...... September 15, 56 FR 56013 full text or referenced as provided in 1991. paragraphs (b) and (c) of this section, 41 ...... December 15, 57 FR 21611 are published, as appropriate, in the 1991. 42 ...... March 15, 1992 .. 57 FR 21613 Domestic Mail Manual in full text or 43 ...... June 21, 1992 ..... 57 FR 37884 referenced at the place where they 44 ...... September 20, 61 FR 67218 would appear if they become final regu- 1992. lations. 45 ...... December 20, 61 FR 67218 1992. (e) Announcements of changes to the 46 ...... July 1, 1993 ...... 61 FR 67218 Domestic Mail Manual not published in 47 ...... April 10, 1994 ..... 61 FR 67218 the FEDERAL REGISTER as provided in 48 ...... January 1, 1995 .. 61 FR 67218 49 ...... September 1, 61 FR 67218 paragraphs (a) and (b) of this section 1995. and not published in the Postal Bul- 50 ...... July 1, 1996 ...... 61 FR 60190 letin as provided in paragraph (c) are 51 ...... January 1, 1997 .. 61 FR 64618 not deemed final under the provisions 52 ...... July 1, 1997 ...... 62 FR 30457 53 ...... January 1, 1998 .. 62 FR 63851 of this part 111. 54 ...... January 10, 1999 64 FR 39 (f) For references to amendments to 55 ...... January 10, 2000 65 FR 1321 the Domestic Mail Manual adopted 56 ...... January 7, 2000 .. 66 FR 8370 under paragraph (b) of this section 57 ...... June 30, 2002 ..... 67 FR 46875 after issuance of the most recent transmittal letter (termed Summary of [45 FR 40115, June 13, 1980] Changes in the Domestic Mail Manual) EDITORIAL NOTE For Federal Register cita- listed below, see § 111.3 in the List of tions affecting § 111.3, see the List of CFR CFR Sections affected at the end of Sections Affected, which appears in the this volume. Finding Aids section of the printed volume and on GPO Access. Transmittal letter for Dated Federal Register issue publication § 111.4 Approval of the Director of the 1 ...... July 30, 1979 ...... 44 FR 39742. Federal Register. 2 ...... May 15, 1980 ...... 45 FR 42616. Incorporation by reference of the 3 ...... July 30, 1980 ...... 45 FR 73925. 4 ...... Oct. 1, 1980 ...... 46 FR 10154. publication now titled the Domestic 5 ...... Mar. 1, 1981 ...... 46 FR 25446. Mail Manual was approved by the Di- 6 ...... July 7, 1981 ...... 46 FR 58079. rector of the Federal Register under 5 7 ...... Nov. 1, 1981 ...... 47 FR 8179. U.S.C 552(a) and 1 CFR part 51 on 8 ...... Jan. 21, 1982 ...... 47 FR 8358. 9 ...... May 1, 1982 ...... 47 FR 27266. March 29, 1979. 10 ...... Aug. 1, 1982 ...... 47 FR 43952. 11 ...... Jan. 20, 1983 ...... 48 FR 10649. (5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408, 13 ...... Dec. 29, 1983 ..... 49 FR 18304. 3001–3011, 3201–3218, 3403–3405, 3601, 3621; 42 14 ...... Apr. 12, 1984 ...... 49 FR 26228. U.S.C. 1973cc–13, 1973cc–14) 15 ...... July 12, 1984 ...... 49 FR 33248. 16 ...... Sept. 27, 1984 .... 49 FR 47232. [49 FR 47389, Dec. 4, 1984] 17 ...... Dec. 20, 1984 ..... 50 FR 5580. 18 ...... Feb. 21, 1985 ..... 50 FR 12019. § 111.5 Contents of the Domestic Mail 19 ...... June 7, 1985 ...... 50 FR 30834. Manual. 20 ...... Nov. 14, 1985 ..... 51 FR 8495. 21 ...... Sept. 4, 1986 ...... 51 FR 43910. A ADDRESSING 22 ...... Jan.22, 1987 ...... 52 FR 10750. 23 ...... May 1, 1987 ...... 52 FR 23981. A000 Basic Addressing 24 ...... Sept. 20, 1987 .... 52 FR 34778. A010 General Addressing Standards 25 ...... Dec. 20, 1987 ..... 52 FR 48437. A040 Alternative Addressing Formats 26 ...... April 3, 1988 ...... 53 FR 18557. A060 Detached Address Labels (DALs) 27 ...... June 19, 1988 ..... 53 FR 21821. A800 Addressing for Barcoding 28 ...... Sept. 18, 1988 .... 53 FR 35315. 29 ...... Dec.18, 1988 ...... 53 FR 49658. A900 Customer Support 30 ...... Mar. 19, 1989 ..... 54 FR 9212. A910 Mailing List Services 31 ...... June 18, 1989 ..... 54 FR 27880. A920 Address Sequencing Services

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A930 Other Services E060 Official Mail (Penalty) A950 Coding Accuracy Support System E070 Mixed Classes (CASS) E080 Absentee Balloting Materials E100 First-Class Mail C CHARACTERISTICS AND CONTENT E110 Basic Standards C000 General Information E120 Priority Mail C010 General Mailability Standards E130 Nonautomation Rates C020 Restricted or Nonmailable Articles E140 Automation Rates and Substances E150 Qualified Business Reply Mail (QBRM) C021 Articles and Substances Generally E200 Periodicals C022 Perishables E210 Basic Standards C023 Hazardous Materials E211 All Periodicals C024 Other Restricted or Nonmailable Mat- E212 Qualification Categories ter E213 Periodicals Mailing Privileges C030 Nonmailable Written, Printed, and E214 Reentry Graphic Matter E215 Copies Not Paid or Requested by Ad- C031 Written, Printed, and Graphic Matter dressee Generally E216 Publisher Records C032 Sexually Oriented Advertisements E217 Basic Rate Eligibility C033 Pandering Advertisements E220 Presorted Rates C050 Mail Processing Categories E230 Carrier Route Rates C100 First-Class Mail E240 Automation Rates C200 Periodicals E250 Destination Entry C500 Express Mail E260 Ride Along C600 Standard Mail E270 Preferred Periodicals C700 Package Services E500 Express Mail C800 Automation-Compatible and Machin- E600 Standard Mail able Mail E610 Basic Standards C810 Letters and Cards E620 Presorted Rates C820 Flats E630 Enhanced Carrier Route Rates C840 Barcoding Standards for Letters and E640 Automation Rates Flats E650 Destination Entry C850 Barcoding Standards for Parcels E670 Nonprofit Standard Mail E700 Package Services D DEPOSIT, COLLECTION, AND E710 Basic Standards DELIVERY E711 Parcel Post D000 Basic Information E712 Bound Printed Matter D010 Pickup Service E713 Media Mail D020 Plant Load E714 Library Mail D030 Recall of Mail E750 Destination Entry D040 Delivery of Mail E751 Parcel Select D041 Customer Mail Receptacles E752 Bound Printed Matter D042 Conditions of Delivery E753 Combining Package Services Parcels D070 Drop Shipment F FORWARDING AND RELATED D071 Express Mail and Priority Mail SERVICES D072 Metered Mail D100 First-Class Mail F000 Basic Services D200 Periodicals F010 Basic Information D210 Basic Information F020 Forwarding D230 Additional Entry F030 Address Correction, Address Change, D500 Express Mail FASTforward, and Return Services D600 Standard Mail D700 Package Services G GENERAL INFORMATION D900 Other Delivery Services G000 The USPS and Mailing Standards D910 Post Office Box Service G010 Basic Business Information D920 Caller Service G011 Post Offices and Postal Services D930 General Delivery and Firm Holdout G013 Trademarks and Copyrights G020 Mailing Standards E ELIGIBILITY G030 Postal Zones E000 Special Eligibility Standards G040 Information Resources E010 Overseas Military Mail G042 Rates and Classification Service Cen- E020 Department of State Mail ters E030 Mail Sent by U.S. Armed Forces G043 Address List for Correspondence E040 Free Matter for the Blind and Other G090 Experimental Classifications and Handicapped Persons Rates E050 Official Mail (Franked) G091 NetPost Mailing Online

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G095 Presorted Priority Mail M500 Express Mail G900 Philatelic Services M600 Standard Mail (Nonautomation) M610 Presorted Standard Mail L LABELING LISTS M620 Enhanced Carrier Route Standard L000 General Use Mail L001 5-Digit Scheme—Periodicals Flats and M700 Package Services Irregular Parcels, Standard Mail Flats, M710 Parcel Post and BPM Flats M720 Bound Printed Matter L002 3-Digit ZIP Code Prefix Matrix M721 Single-Piece Bound Printed Matter L003 3-Digit ZIP Code Prefix Groups—3- M722 Presorted Bound Printed Matter Digit Scheme Sortation M723 Carrier Route Bound Printed Matter L004 3-Digit ZIP Code Prefix Groups—ADC M730 Media Mail Sortation M740 Library Mail L005 3-Digit ZIP Code Prefix Groups—SCF M800 All Automation Mail Sortation M810 Letter-Size Mail L006 5-Digit Metro Scheme M820 Flat-Size Mail L600 Standard Mail and Package Services M900 Advanced Preparation Options for L601 BMCs Flats L602 ASFs M910 Co-Traying and Co-Sacking Package L603 ADCs—Irregular Standard Mail Par- of Automation and Presorted Mailings cels M920 Merged Containerization of Packages L604 Originating ADCs—Standard Mail Ir- Using the City State Product regular Parcels M930 Merged Palletization of Packages L605 BMCs/ASFs—Nonmachinable Parcel Using a 5% Threshold Post BMC Presort and OBMC Presort M940 Merged Palletization of Packages L606 5-Digit Scheme—Standard Mail and Using the City State Product and a 5% Package Services Parcels Threshold L800 Automation Rate Mailings M950 Co-Packaging Automation Rate and L801 AADCs—Letter-Size Mailings Presorted Rate Pieces L802 BMC/ASF Entry—Periodicals, Stand- P POSTAGE AND PAYMENT METHODS ard Mail, and BPM L803 Non-BMC/ASF Entry—Periodicals, P000 Basic Information Standard Mail, and BPM P010 General Standards P011 Payment M MAIL PREPARATION AND SORTATION P012 Documentation M000 General Preparation Standards P013 Rate Application and Computation M010 Mailpieces P014 Refunds and Exchanges M011 Basic Standards P020 Postage Stamps and Stationery M012 Markings and Endorsements P021 Stamped Stationery M013 Optional Endorsement Lines P022 Postage Stamps M014 Carrier Route Information Lines P023 Precanceled Stamps M020 Packages P030 Postage Meters (Postage Evidencing M030 Containers Systems) M031 Labels P040 Permit Imprints M032 Barcoded Labels P070 Mixed Classes M033 Sacks and Trays P100 First-Class Mail M040 Pallets P200 Periodicals M041 General Standards P500 Express Mail M045 Palletized Mailings P600 Standard Mail M050 Delivery Sequence P700 Package Services M070 Mixed Classes P900 Special Postage Payment Systems M071 Basic Information P910 Manifest Mailing System (MMS) M072 Express Mail and Priority Mail Drop P920 Optional Procedure (OP) Mailing Sys- Shipment tem M073 Combined Mailings of Standard Mail P930 Alternate Mailing Systems (AMS) and Package Services Parcels P950 Plant-Verified Drop Shipment (PVDS) M074 Plant Load Mailings P960 First-Class or Standard Mail Mailings M100 First-Class Mail (Nonautomation) With Different Payment Methods M110 Single-Piece First-Class Mail R RATES AND FEES M120 Priority Mail M130 Presorted First-Class Mail R000 Stamps and Stationery M200 Periodicals (Nonautomation) R100 First-Class Mail M210 Presorted Rates R200 Periodicals M220 Carrier Route Rates R500 Express Mail M230 Combining Multiple Editions or Publi- R600 Standard Mail cations of the Same Publisher R700 Package Services

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R900 Services S918 Delivery Confirmation S919 Signature Confirmation S SPECIAL SERVICES S920 Convenience S000 Miscellaneous Services S921 Collect on Delivery (COD) Mail S010 Indemnity Claims S922 Business Reply Mail (BRM) S020 Money Orders and Other Services S923 Merchandise Return Service S070 Mixed Classes S924 Bulk Parcel Return Service S500 Special Services for Express Mail S930 Handling S900 Special Postal Services S910 Security and Accountability I INDEX INFORMATION S911 Registered Mail I000 Information S912 Certified Mail I010 Summary of Changes S913 Insured Mail I020 References S914 Certificate of Mailing I021 Forms Glossary S915 Return Receipt I022 Subject Index S916 Restricted Delivery S917 Return Receipt for Merchandise [67 FR 46875, July 17, 2002]

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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 over all regulations issued by other au- other issuances of the Office of Manage- thority. ment and Budget. (c) The adoption, by reference or oth- 211.4 Interim personnel regulations. erwise, of any rule of law or regulation AUTHORITY: 39 U.S.C. 201, 202, 401(2), 402, in this or any other regulation of the 403, 404, 410, 1001, 1005, 1209; Pub. L. 91–375, Postal Service shall not be interpreted Secs. 3–5, 84 Stat. 773–75. as any expression on the issue of SOURCE: 38 FR 20402, July 31, 1973, unless whether such rule of law or regulation otherwise noted. would apply to the Postal Service if it were not adopted as a regulation, nor § 211.1 Disposition of former title 39, shall it restrict the authority of the U.S.C. Postal Service to amend or revoke the Except as otherwise continued in ef- rule so adopted at a subsequent time. fect as postal regulations, all provi- (d) All regulations of the Post Office sions of former title 39, U.S.C., which Department in effect at the time the were continued in effect as regulations U.S. Postal Service commenced oper- of the Postal Service by section 5(f) of ations, continue in effect, except as the Postal Reorganization Act, are re- subsequently modified or repealed by voked. This revocation does not apply the Postal Service. Except as otherwise to postal regulations which embody or continued in effect as postal regula- are derived from provisions of former tions, all regulations of other agencies title 39. of the United States continued in effect as postal regulations by section 5(a) of § 211.2 Regulations of the Postal Serv- the Postal Reorganization Act are re- ice. pealed. (a) The regulations of the Postal [38 FR 20402, July 31, 1973, as amended at 46 Service consist of: FR 34329, July 1, 1981] (1) The resolutions of the Governors and the Board of Governors of the U.S. § 211.3 Executive orders and other ex- Postal Service and the bylaws of the ecutive pronouncements; circulars, Board of Governors; bulletins, and other issuances of the (2) The Domestic Mail Manual, the Office of Management and Budget. Postal Operations Manual, the Admin- (a) By virtue of the Postal Reorga- istrative Support Manual, the Em- nization Act, certain executive orders, ployee and Labor Relations Manual, and other executive pronouncements the Financial Management Manual, and certain circulars, bulletins, and the Postal Contracting Manual, Publi- other issuances of the Office of Man- cation 42 (International Mail), and agement and Budget or particular pro- those portions of Chapter 2 of the visions thereof, or requirements there- former Postal Service Manual and in, apply to the Postal Service and cer- chapter 7 of the former Postal Manual tain others do not apply. retained in force; (b) It is the policy of the Postal Serv- (3) Headquarters Circulars, Manage- ice to continue to comply with ment Instructions, Regional Instruc- issuances of the kind mentioned in tions, handbooks, delegations of au- paragraph (a) of this section with thority, and other regulatory issuances which it has previously complied, un- and directives of the Postal Service or less a management decision by an ap- the former Post Office Department. propriate department head is made to Any of the foregoing may be published terminate compliance, in whole or in

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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 reorganization measures mandated by nization Act, with other regulations the Congress and consistent with the adopted by the Postal Service, or with provisions of the Act, and any collec- a collective bargaining agreement tive bargaining agreements in exist- under the Postal Reorganization Act, ence at that time, insofar as they do all regulations of Federal agencies not unduly impede such reorganization other than the Postal Service or Post measures, to continue, discontinue, or Office Department and all laws other revise all compensation, benefits, and than provisions of revised title 39, terms and conditions of employment of U.S.C., or provisions of other laws such employees of the Postal Service. made applicable to the Postal Service by revised title 39, U.S.C., dealing with officers and employees applicable to PART 221—GENERAL PRINCIPLES postal officers and employees imme- OF ORGANIZATION diately prior to the commencement of operations of the Postal Service, con- Sec. tinue in effect as regulations of the 221.1 The U.S. Postal Service. 221.2 Board of Governors of the Postal Serv- Postal Service. Any regulation or law ice. the applicability of which is continued 221.3 Postmaster General. by paragraphs (a) through (c) of this 221.4 Deputy Postmaster General. section which requires any action by 221.5 Associate Postmaster General.

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221.6 Groups and departments. ployee, or agent of the Postal Service 221.7 Postal Regions. to exercise such of the PMG’s powers 221.8 Officers. 221.9 Postal Service emblem. as the PMG deems appropriate. For the direction of the Board of Governors AUTHORITY: 39 U.S.C. 201, 202, 203, 204, 207, that the Postmaster General exercise 401(2), 402, 403, 404; Inspector General Act of 1978, as amended (Pub. L. 95–452, as amend- the powers of the Postal Service, see ed), 5 U.S.C. App. 3. §§ 3.5 and 4.3 of this chapter.

§ 221.1 The U.S. Postal Service. [38 FR 20403, July 31, 1973, as amended at 43 FR 29117, July 6, 1978; 45 FR 43718, June 30, (a) The U.S. Postal Service has been 1980; 51 FR 40796, Nov. 10, 1986] established as an independent establishment within the executive branch § 221.4 Deputy Postmaster General. of the Government of the United States (a) The Deputy Postmaster General under the provisions of the Postal Re- organization Act of August 12, 1970, is the alternate chief executive officer Pub. L. 91–375, 84 Stat. 719. of the Postal Service. The Deputy is (b) As a complement to the informa- appointed and can be removed by the tion in the regulations in this part, a Postmaster General and the Governors. concise statement of the organization The Deputy is a voting member of the of the Postal Service can be found in Board of Governors. the United State Government Organi- (b) The Deputy Postmaster General zation Manual. is required to perform all tasks as as- [38 FR 20403, July 31, 1973] signed by the Postmaster General. The Deputy acts as Postmaster General in § 221.2 Board of Governors of the Post- the Postmaster General’s absence or al Service. whenever a vacancy exists in the Office (a) The Board of Governors directs of Postmaster General. the exercise of the powers of the Postal (c) For delineation of authority of Service; reviews the practices and poli- the Deputy Postmaster General by the cies of the Postal Service; and directs Board of Governors see § 4.4 of this and controls its expenditures. chapter. (b) For composition of the Board of Governors, see § 3.1 of this chapter. [38 FR 20403, July 31, 1973, as amended at 41 FR 16941, Apr. 23, 1976; 43 FR 29117, July 6, [38 FR 20403, July 31, 1973, as amended at 51 1978; 45 FR 43718, June 30, 1980] FR 40796, Nov. 10, 1986] § 221.5 Associate Postmasters General. § 221.3 Postmaster General. (a) The Associate Postmasters Gen- (a) The Postmaster General (PMG) is eral are appointed and can be removed the chief executive officer of the Postal by the Postmaster General. Service and is responsible for its overall operation. The PMG is named and (b) The Associate Postmasters Gen- can be removed by a majority of the eral are required to perform all tasks nine Governors. as assigned by the Postmaster General. (b) The Postmaster General deter- [54 FR 29706, July 14, 1989] mines appeals from the actions of staff and department heads, except that in § 221.6 Groups and departments. cases where the PMG has delegated authority to make a decision to a subor- (a) Postal Service Headquarters is di- dinate, such subordinate may also de- vided into five major groups: Oper- termine appeals within the authority ations Support, Finance, Human Re- delegated. sources, Marketing and Communica- (c) The Board of Governors has ditions, and Administrative Services. rected that the Postmaster General ex- Each group is headed by a Senior As- ercise the powers of the Postal Service sistant Postmaster General (SAPMG). to the extent that such exercise does The SAPMG for Finance reports di- not conflict with power reserved to the rectly to the Postmaster General. The Board by law. The Postmaster General SAPMG for Operations Support reports is authorized to direct any officer, em- directly to the Deputy Postmaster

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General. The SAPMGs for Human Re- (e) Statements of the functions of the sources, Marketing and Communica- various groups, departments, and of- tions, and Administrative Services re- fices can be found in Part 224 of this port directly to the Associate Post- chapter. master General (Systems). The [51 FR 40796, Nov. 10, 1986, as amended at 54 SAPMGs are responsible for the fol- FR 29706, July 14, 1989] lowing activities within their assigned areas: § 221.7 Postal Regions. (1) Program planning, direction, and (a) There are five Postal Regions. review; Each region is headed by a Regional (2) Establishment of policies, proce- Postmaster General (RPMG) who re- dures, and standards; and ports to the Deputy Postmaster Gen- (3) Operational determinations not eral, and has overall responsibility for within the full jurisdiction of field offi- operational activities (except those re- cers. served to Headquarters) of the Postal (b) Groups are divided into depart- Service within the region. ments or offices headed by either As- (b) Each RPMG’s office includes five sistant Postmasters General (APMGs) functions—Operations Support, Mar- or Directors. The heads of these depart- keting and Communications, Finance, ments and offices report to and are re- Planning, and Human Resources. Each sponsible for assisting the SAPMGs in regional function is headed by a Re- carrying out their assigned activities. gional Director who reports to the (c) Certain other Headquarters units RPMG. report directly to the Postmaster Gen- (c)(1) Postal regions are composed of eral. These include the Inspection field divisions headed by field division Service Department, headed by the general managers/postmasters whose Chief Postal Inspector; the Law De- organizational units are in turn com- partment, headed by the General Coun- posed of management sectional centers sel, and the Planning Department, (MSCs) headed by MSC managers or headed by an Assistant Postmaster MSC managers/postmasters, and bulk General. The Executive Assistant to mail centers (BMCs) headed by BMC the Postmaster General also reports to managers. the Postmaster General. (2) Each field division general man- (d)(1) The Senior Management Com- ager/postmaster reports to the RPMG, mittee establishes Postal Service di- and has line responsibility for postal rection and policy, initiates and mon- activities (except those reserved to itors key programs, prioritizes re- Headquarters associate offices) in the source utilization, and serves as the re- division area, the MSCs, associate of- view and approval body for all major fices, and BMCs within the division plans, programs, and projects. It fos- area. ters cross-functional cooperation and (3) Each MSC manager/postmaster re- develops the strategic plans for the ports to a field division general man- Postal Service. ager/postmaster, and has line responsi- (2) The Senior Management Com- bility for postal activities (except mittee is made up of the following: The those reserved to Headquarters and Postmaster General, the Deputy Post- field divisions) within the MSC area. master General, Associate Postmasters (4) Each BMC manager reports to a General, the Senior Assistant Post- field division general manager/postmasters General, General Counsel, master, and has line responsibility for Chief Postal Inspector, Assistant Post- postal activities (except those reserved master General, Planning (Secre- to Headquarters and field divisions) tariat), Assistant Postmaster General, within the BMC. Communications (Observer), Assistant Postmaster General, Government Rela- [51 FR 40797, Nov. 10, 1986, as amended at 54 tions (Observer), Executive Assistant FR 29707, July 14, 1989] to the Postmaster General (Observer), Secretary to the Board of Governors § 221.8 Officers. (Observer), Field Executive (Rotational (a) Except for the Chief Postal In- Basis). spector, officers serve at the pleasure

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of the Postmaster General. The fol- 222.5 Authority to approve personnel ac- lowing officers are appointed by the tions and administer oaths of office for Postmaster General: employment. (1) Associate Postmaster General; 222.6 Authority to administer oaths other than for employment. (2) Senior Assistant Postmasters 222.7 Authority to designate certifying General; officers—headquarters. (3) Assistant Postmasters General; 222.8 Authority to designate certifying (4) The General Counsel and Deputy officers—field. General Counsel; 222.9 Delegation of authority to the Senior (5) The Consumer Advocate; Assistant Postmaster General, Finance. 222.10 Delegation of authority to the (6) The Chief Postal Inspector; APMG, International Postal Affairs De- (7) The Judicial Officer; partment. (8) The Executive Assistant to the AUTHORITY: 39 U.S.C. 203, 204, 401(2), 402, Postmaster General; 403, 404, 409; Inspector General Act of 1978, as (9) The Treasurer; and amended (Pub. L. No. 95–452, as amended), 5 (10) The Regional Postmasters Gen- U.S.C. App. 3. eral. SOURCE: 38 FR 20404, July 31, 1973, unless (b) The number of SAPMGs and otherwise noted. APMGs is set by resolution of the Board of Governors. § 222.1 Authority for delegation. (c) The Postmaster General, in con- (a) The Postmaster General is em- sultation with the Governors of the powered to authorize any employee or Postal Service, shall appoint the Chief agent of the Service to exercise any Postal Inspector. With the concurrence function vested in the Postal Service, of the Governors of the Postal Service, in the PMG, or in any other Postal the Postmaster General may remove Service employee. the Chief Postal Inspector or transfer (b) The Deputy Postmaster General the Chief Postal Inspector to another is the full alternate to the Postmaster position or location in the Postal Serv- General. ice. If the Chief Postal Inspector is re- (c) When, by reason of absence, dis- moved or transferred, the Postmaster ability, or vacancy in office, neither General shall promptly notify both the Postmaster General nor the Deputy House of Congress in writing of the rea- Postmaster General can act as Post- sons for such removal or transfer. master General, the first available offi- [51 FR 40797, Nov. 10, 1986, as amended at 56 cial on the following list will do so: FR 55823, Oct. 30, 1991] (1) Associate Postmaster General; (2) Senior Assistant Postmaster Gen- § 221.9 Postal Service emblem. eral, Operations Support. The Postal Service emblem, which is (d) The Postmaster General has been identical with the seal, is registered as authorized by the Board of Governors a trademark and service mark by the to exercise the powers of the Postal U.S. Patent Office. Except for the em- Service to the full extent that such ex- blem on official stationery, the em- ercise is lawful. See §§ 3.5 and 4.3 of this blem must bear one of the following chapter. notations: ‘‘Reg. U.S. Pat. Off.’’, ‘‘Reg- (e) The Associate Postmasters Gen- istered in U.S. Patent Office’’, or the eral; the SAPMGs; the Chief Postal In- letter R enclosed within a circle. spector; the General Counsel; the As- sistant Postmaster General, Planning; [59 FR 18454, Apr. 18, 1994] and the Executive Assistant to the Postmaster General, act for the Post- PART 222—DELEGATIONS OF master General on assigned matters. AUTHORITY These officers are authorized to exercise the powers and functions of the Sec. Postal Service under the Postal Reor- 222.1 Authority for delegation. ganization Act, in respect to matters 222.2 Media of delegation. within their area of responsibility, ex- 222.3 Contents of delegations. cept as limited by law or by the spe- 222.4 Redelegation. cific terms of their assignment.

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(f) Heads of departments or offices prohibits redelegation, or by the terms who report to a Senior Assistant Post- of the delegation: master General are authorized to exer- (1) Heads of groups, functions, or of- cise the powers and functions of that fices at Headquarters are authorized to SAPMG within the area of responsi- redelegate any authority vested in bility of their department or office, ex- them. cept as such authority may be reserved (2) Regional Postmasters General or or rescinded by the SAPMG or is lim- heads of regional departments are au- ited by law or the terms of their spe- thorized to redelegate any authority cific assignment. vested in them subject to the condition that redelegation to members of a re- [38 FR 20404, July 31, 1973, as amended at 46 FR 34330, July 1, 1981; 48 FR 1965, Dec. 17, gional staff must be consistent with 1983; 48 FR 30111, June 30, 1983; 51 FR 40797, the then current regional organiza- Nov. 10, 1986; 54 FR 29707, July 14, 1989] tional structure. (3) Field division general managers/ § 222.2 Media of delegation. postmasters are authorized to redele- (a) All delegations of authority must gate, subject to or within guidelines be issued through official directives. issued by the RPMG, any authority (b) Headquarters or regional officials vested in them, provided that the re- shall not orally authorize postmasters delegation is consistent with the cur- to deviate from published instructions, rent organizational structure. except in emergencies. An oral author- (4) Postal data center (PDC) directors ization must be confirmed by a memo- are authorized to redelegate any au- randum or order dated subsequent to thority vested in them. the issuance date of the most recently (5) Heads of MSCs and other field in- published instructions on the subject. stallations are authorized to redelegate Postal inspectors shall charge as irreg- to members of their respective staffs ularities any improperly authorized de- any authority vested in them. viations observed in the course of of- [51 FR 40797, Nov. 10, 1986, as amended at 54 fice inspections. FR 29707, July 14, 1989]

[38 FR 20404, July 31, 1973, as amended at 51 § 222.5 Authority to approve personnel FR 40797, Nov. 10, 1986] actions and administer oaths of of- § 222.3 Contents of delegations. fice for employment. (a) Delegations of authority shall or- (a) Delegation. The following are au- dinarily be made by position title rath- thorized to effect appointments, ad- er than by name of the individual in- minister oaths of office for employ- volved. An officer or executive acting ment, and take other personnel ac- in the absence of a principal has the tions: (1) Senior Assistant Postmaster Gen- principal’s full authority. (b) When authority is delegated to an eral, Human Resources, Assistant Post- officer, the officers above that officer masters General, Employee Relations shall have the same authority. Dele- Department and Labor Relations De- gated authority shall not extend to partment; aides except when an aide serves on an (2) Chief Postal Inspector; (3) Regional Chief Postal Inspectors; acting basis (see paragraph (a) of this (4) Postal Inspectors-in-Charge; section) or unless the aide is specifi- (5) Regional Postmasters General; cally authorized by the superior to ex- (6) Heads of postal field installations ercise such authority. including those reporting directly to (c) A delegation must agree with the specified departments in Headquarters law and regulations under which it is or to Regional Postmasters General; made and contain such specific lim- (7) Officials occupying personnel iting conditions as may be appropriate. services positions EAS–15 and above, [51 FR 40797, Nov. 10, 1986] when their positions include responsibility for functions such as recruit- § 222.4 Redelegation. ment, appointments, replacements, po- (a) Except as otherwise prohibited by sition changes and separations, and re- law, or by a regulation that expressly lated personnel processing.

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(b) Personnel actions for employees of imburse postal employees for fees paid ‘‘other installations.’’ As specifically au- for administering oaths. thorized by either the Senior Assistant (d) Postmasters in Alaska as notaries Postmaster General, Human Resources public. (1) Administer oaths and affir- or a Regional Postmaster General, offi- mations; take acknowledgments and cers and employees listed in paragraph make and execute certificates thereof; (a) of this section may approve per- and perform all other functions of a no- sonnel actions for employees in offices tary public within Alaska whenever a or installations other than their own certification is necessary to comply as a cross-service, as a central per- with any Act of Congress or of the Leg- sonnel office, or on a special need basis. islature of Alaska. (c) Transfers of accountability. In addi- (2) When executing certificates of tion to other personnel authorized oath, affirmation, or acknowledgment, under this section, associate office co- and the title ‘‘Postmaster’’ after your ordinators at field divisions and man- signature and give the name of the post agement sectional centers may admin- office and date document is executed. ister oaths of office for employment at Place legible postmark impression of any post office in conjunction with the post office on the document. transfers of accountability of post- (3) Keep a record of all deeds and masters. other instruments of writing acknowl- [38 FR 20404, July 31, 1973, as amended at 40 edged, relating to the title to or trans- FR 13498, Mar. 27, 1975; 43 FR 29117, July 6, fer of property. This record shall be 1978; 51 FR 40798, Nov. 10, 1986; 54 FR 29707, available to your successors, and shall July 14, 1989; 63 FR 9943, Feb. 27, 1998] be subject to public inspection. (e) Fees for notarial service. An officer § 222.6 Authority to administer oaths or employee who is a notary public other than for employment. shall not charge or receive compensa- The following are authorized to ad- tion for notarial services for another minister oaths concerning matters officer or employee regarding Govern- other than employment: ment business; nor for notarial services (a) Postal inspectors with regard to for any person during the hours of the any matter coming before them in the notary’s services to the Government, performance of their official duties; including the lunch period. (b) Any member of a board who is assigned to conduct hearings or inves- (39 U.S.C. 401) tigations in which sworn testimony, af- [36 FR 4767, Mar. 12, 1971. Redesignated at 38 fidavits, or depositions are required FR 20327, July 31, 1973. 38 FR 20404, July 31, and each officer or employee assigned 1973, as amended at 40 FR 26511, June 24, 1975; to conduct such hearings or investiga- 51 FR 40798, Nov. 10, 1986; 54 FR 29707, July 14, tions; 1989] (c) Postmasters’ authority. Post- masters are required, empowered, and § 222.7 Authority to designate certifying officers—headquarters. authorized, when requested, to administer oaths with a like force and effect (a) Delegation. The following are au- as officials having a seal, as follows: thorized to designate certifying offi- (1) Expense accounts. Accounts for cers at Headquarters for the items travel or other expenses against the specified: United States. (1) The Chief Postal Inspector, for: (i) (2) Customs documents. At post offices Payment from his special deposit ac- where customs officers are not sta- count; (ii) disbursements for rewards tioned, any oath required to be made to based on Postmaster General Notices statements in customs documents by of Reward; (iii) payments from con- importers of merchandise by mail, not fidential funds; (iv) salary payments exceeding $100 in value. for Special Investigations Division; (v) (3) Recruitments for Job Training Pro- advances of funds for confidential pur- grams. Oaths of office to prospective poses; (vi) inspection service, travel ad- Job Training Programs enrollees. vances, transportation of things; and (4) Fees. Do not collect fees for these (vii) payments for special analyses and services. The United States will not re- services.

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(2) The General Counsel certifies pay- officers contained in this section shall ments relating to tort claims and be followed. claims under 39 U.S.C. 2603. [38 FR 20404, July 31, 1973, as amended at 43 (3) The Senior Assistant Postmaster FR 29117, July 6, 1978; 51 FR 40798, Nov. 10, General, Finance, certifies all pay- 1986; 54 FR 29707, July 14, 1989] ments not covered by paragraphs (a) (1) and (2) of this section. § 222.8 Authority to designate certifying officers—field. (b) Redelegation. The officials named in paragraph (a) of this section are au- (a) Delegation. The following are authorized to redelegate their authority thorized to designate certifying offi- to designate certifying officers. The re- cers in Postal Data Centers and Inspec- delegation shall be made by letter to tion Service regions and divisions: the appropriate Postal Data Center dis- (1) The Chief Postal Inspector, for ob- bursing officer and must bear the speci- ligations of the Inspection Service. men signature of the person to whom (2) Postal Data Center Directors for obligations of all other regional func- the authority is redelegated. tions. (c) Designating certifying officers—(1) (3) The New York Postal Data Center Inspection Service and Law Department. Director for obligations for Head- Officials authorized to designate certi- quarters functions except those under fying officers (see paragraph (a) of this § 222.7(a) (1) and (2) and those certified section) will complete SF 210, Signa- by the Senior Assistant Postmaster ture/Designation Card for Certifying General, Finance, or designee. Officer, in duplicate for each Postal (b) Redelegation. The officials named Data Center officer affected to show: in paragraph (a) of this section are au- (i) Name of department for which thorized to redelegate their authority vouchers will be certified. to designate certifying officers. Redele- (ii) Signature of certifying officer gations shall be by letter to each dis- written exactly as vouchers will be bursing officer affected, with the speci- signed. men signature of the person to whom (iii) Class of vouchers to be certified. authority is redelegated. (iv) The official’s signature and effec- (c) Designating certifying officers—(1) tive date. Regional Chief Postal Inspectors and (2) Other departments and offices. Postal Inspectors-in-Charge. Regional Other departments and offices requir- Chief Postal Inspectors and Postal In- ing certifying officers will complete SF spectors-in-Charge are designated cer- 210 in duplicate as prescribed in para- tifying officers, as limited by the Chief graph (c)(1) of this section, except for Postal Inspector. They are authorized signature and date. Both copies will be to designate certifying officers for obli- sent to the Senior Assistant Post- gations incurred by the Postal Inspec- master General, Finance. tion Service. They will complete SF 210 in duplicate to show: (3) Submitting SF 210 to Postal Data (i) Postal Inspection Service region The Chief Center disbursing officers. or division for which vouchers will be Postal Inspector, the General Counsel, certified. and the Senior Assistant Postmaster (ii) Signature of certifying officer General, Finance, or their designees written in the same manner that he shall send signed originals of SF 210 to will sign vouchers. each of the disbursing officers affected (iii) Class of vouchers to be certified. and retain duplicates. These documents (iv) Signature of the designating offi- will be the official designations of the cial and effective date. Regional Chief employees named on the SF 210 as cer- Postal Inspectors and Postal tifying officers. Inspectors—in—Charge are not author- (d) Maintaining designations. Each ized to redelegate their authority to group, department and office must designate authorized certifying offi- keep current its designation of author- cers. ized certifying officers. When new or (2) Postal Data Center Directors. Offi- additional designations are made, the cers under direction of Postal Data procedures for designating certifying Center Directors will complete SF 210

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in duplicate as in paragraph (c)(1) of this section to such other officers or this section except for signature and executives as deemed appropriate. date. Both copies will be sent to the appropriate Postal Data Center Director [38 FR 20404, July 31, 1973, as amended at 43 FR 29117, July 6, 1978; 51 FR 40798, Nov. 10, for completion. 1986; 54 FR 29707, July 14, 1989] (3) Submitting SF 210 to disbursing officer. The Regional Chief Postal Inspec- § 222.10 Delegation of authority to the tor, Postal Inspectors-in-Charge, and APMG, International Postal Affairs Postal Data Center Director (or des- Department. ignees) will send the originals of SF 210 The APMG, International Postal Af- to each disbursing officer affected and fairs Department, is authorized to sign keep the duplicates. These will be the Express Mail agreements with foreign official designations of the employees named on the SF 210 as certifying offi- postal administrations, and to sign cers. technical agreements for the exchange (d) Maintaining designations. Each of- of postal personnel and property with fice under jurisdiction of the officials foreign postal administrations. named in § 222.8 must keep current its [41 FR 52299, Nov. 29, 1976, as amended at 51 designation of authorized certifying of- FR 40798, Nov. 10, 1986] ficers. When new additional designations are made, this § 222.8 shall be fol- PART 223—RELATIONSHIPS AND lowed. CHANNELS OF COMMUNICATION [38 FR 20404, July 31, 1973, as amended at 51 FR 40796, Nov. 10, 1986; 54 FR 29707, July 14, Sec. 1989] 223.1 Relationships. § 222.9 Delegation of authority to the 223.2 Channels of communication. Senior Assistant Postmaster Gen- AUTHORITY: 39 U.S.C. 203, 204, 401(2), 402, eral, Finance. 403, 404. (a) Delegation. The Senior Assistant Postmaster General, Finance, may § 223.1 Relationships. take final action on: (a) Between Headquarters and Regions. (1) Claims for overpayment of pay. Each Headquarters group, department, (2) Relief of accountable officers of li- and office shall provide guidance and ability for loss. policy interpretation to regional offi- (3) Relief of accountable officers of li- cials in its area of responsibility. ability for illegal, improper, or incor- (b) Between Postal Region Offices and rect payments. Field Divisions. The Regional Post- (4) Certifying officers’ account- master General shall provide guidance ability. and direction to the respective field di- (5) Deposit to and withdrawal from vision general managers/postmasters Postal Service fund. within the region with the assistance (6) Collection of debts due the Postal of Regional Directors and their staffs Service with the exception of those in their areas of specialization. falling under the jurisdiction of the Chief Postal Inspector. (c) Between Field Divisions and MSCs. (7) Adjustment of claims of post- Field division general managers/postmasters and Armed Forces postal masters and staffs shall provide guid- clerks, including the loss of funds or ance and direction to their respective valuable papers from their official cus- MSC managers/postmasters. tody resulting from burglary, fire, or (d) Between Field Divisions and Bulk unavoidable casualty, with concur- Mail Centers. Field division general rence by the General Counsel is cases managers/postmasters and staffs shall involving doubtful questions of law or provide guidance and direction to their fact. Bulk Mail Center Managers. (b) Redelegation. The Senior Assistant [38 FR 20406, July 31, 1973, as amended at 43 Postmaster General, Finance, is au- FR 29117, July 6, 1978; 48 FR 1966, Jan. 17, thorized to redelegate all or part of the 1983; 51 FR 40798, Nov. 10, 1986; 54 FR 29708, authority vested by paragraph (a) of July 14, 1989]

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§ 223.2 Channels of communication. (4) Field division general managers/ (a) Headquarters and Postal Region Of- postmasters, to and from their Re- fices. (1) The heads of groups, depart- gional Postmasters General. ments, and offices formulate the nec- (5) Heads of other postal installa- essary directives to provide guidance tions, to and from their designated su- to regional officials. Direction of re- periors as appropriate. gional officials is provided on employee (c) Headquarters, Postal Region Offices, and labor relations matters by the Sen- and other Postal Installations with Postal ior Assistant Postmaster General, Data Centers. (1) The Information Re- Human Resources, and on other mat- source Management Department pro- ters by the Deputy Postmaster Gen- vides the necessary directives to the eral. PDCs. The Law Department shall (2) Policy directives shall be issued maintain direct contact on matters re- over the signatures of the heads of the lating to professional and policy guid- groups, departments, and offices cov- ance on claims. ering matters within their responsi- (2) Postal Region Offices and Postal bility, except when the Postmaster Data Centers may communicate di- General or Deputy Postmaster General rectly with each other. may wish to issue such directives per- (3) Other postal installations and sonally. Policy directives shall be co- PDCs may communicate directly on ordinated with other appropriate routine accounting matters. groups, departments and offices before [38 FR 20406, July 31, 1973, as amended at 43 issuance and reviewed and dissemi- FR 29117, July 6, 1978; 48 FR 1966, Jan. 17, nated by the APMG Information Re- 1983; 48 FR 30111, June 30, 1983; 51 FR 40798, source Management Department, and, Nov. 10, 1986; 54 FR 29708, July 14, 1989] if within the authority of the issuer, shall have the same effect as though PART 224—ORGANIZATIONS RE- sent by the Postmaster General or the PORTING DIRECTLY TO THE POST- Deputy Postmaster General. MASTER GENERAL (3) Guidelines and program implementation instructions and procedures Sec. not involving policy shall ordinarily be 224.1 Finance Group. issued over the signature of the group, 224.2 [Reserved] department, or office head having ju- 224.3 Postal Inspection Service. risdiction. 224.4 General Counsel. (4) Regional staff officials may com- 224.5 Planning Department. municate directly with the cor- AUTHORITY: 39 U.S.C. 203, 204, 401(2), 403, responding functional group, depart- 404, 409, 1001; Inspector General Act of 1978, ment, or office in Headquarters on as amended (Pub. L. No. 95–452, as amended), matters within their area of jurisdic- 5 U.S.C. App. 3. tion. In addition, where authorized, SOURCE: 52 FR 46998, Dec. 11, 1987, unless they may also directly contact sup- otherwise noted. porting Headquarters departments such as Law Department and Inspec- § 224.1 Finance Group. tion Service Department on technical (a) General. The Finance Group is matters not requiring administrative headed by a Senior Assistant Post- judgment of the Regional Postmaster master General (SAPMG). The group General. consists of three departments, each (b) Regional Offices and Field Installa- headed by an Assistant Postmaster tions. The regular channels of commu- General, and the Office of the Treas- nication are: urer and the USPS Records Office. The (1) Associate office postmasters, to SAPMG, Finance, participates in the and from their MSC Manager/Post- planning and budget process, and re- master. views and evaluates the budget re- (2) MSC Managers/Postmasters, to quests of each region for the areas and from their Field Division General under control of the Finance Group. Manager/Postmaster. (b) Rates and Classification Depart- (3) BMC managers, to and from field ment. The Rates and Classification De- division general managers/postmasters. partment is responsible for:

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(1) Designing and maintaining the (e) Office of the Treasurer. The Treas- rate and mail classification structure. urer is responsible for: (2) Developing and administering (1) Operating a nationwide network standards and procedures related to of primary and concentration banks to cost analysis and attribution. gather revenue. (3) Forecasting mail volume. (2) Developing cash management ini- (4) Developing and supporting rate tiatives to speed cash flow. recommendations to the Postal Rate (3) Implementing debt management Commission. strategies to meet long-term capital (5) Developing policies, regulations, and short-term borrowing needs. systems, and procedures for the man- (4) Planning investment strategies to agement and control of the admissi- ensure liquidity and to earn a competi- bility, classification, and application of tive rate of return. rates and fees for domestic or inter- (5) Managing the investment of ex- national mail of all classes and the col- cess cash. lection of revenue from bulk mailers (f) Records Office. The Records Office and special service users. has responsibility for the retention, se- (c) Controller Department. The Con- curity, and privacy of Postal Service troller Department is responsible for: records; authorizes their preservation and disclosure; and orders their dis- (1) Developing financing policy and posal by destruction or transfer. forecasting long-term financing, capital requirements, and borrowing [52 FR 46998, Dec. 11, 1987; 52 FR 49015, Dec. needs. 29, 1987. Redesignated and amended at 54 FR (2) Establishing a comprehensive con- 29708, July 14, 1989; 60 FR 57344, Nov. 15, 1995] trollership program for financial man- § 224.2 [Reserved] agement. (3) Maintaining control of the finan- § 224.3 Postal Inspection Service. cial activities. (a) The Postal Inspection Service is (4) Developing accounting policy and headed by the Chief Postal Inspector procedures and operating the financial who also acts as the Chief Security Of- reporting programs and controls. ficer and Defense Coordinator for the (5) Establishing budgeting, economic Postal Service. and cost benefit functions, payroll sys- (b) The Postal Inspection Service is tems, policies, and procedures. responsible for: (6) Directing the formulation and (1) Protecting mail matter, postal fa- presentation of a national budget to cilities and other postal assets, em- the Senior Management Committee, ployees, and people on postal premises. Board of Governors, Office of Manage- (2) Enforcing laws related to the ment and Budget, and Congress. Postal Service, the mails, other postal (d) Special Projects Department. The offenses and other laws of the United Special Projects Department is respon- States. sible for: (3) Conducting investigations into (1) Assisting senior management in violations of federal laws that the At- formulating policy and direction on torney General determines have a det- complex issues. rimental effect upon the operations of (2) Directing special studies identi- the Postal Service. fied by senior management for use in (4) Carrying out investigations and senior management deliberations. presenting evidence to the Department (3) Monitoring specifically designed of Justice, U.S. Attorneys, and state issues on behalf of senior management and local authorities, in investigations and providing staff analysis of these of a criminal or civil nature. issues as they change over time. (5) Carrying out administrative and (4) Providing leadership responsi- civil investigations and presenting bility on behalf of senior management findings and evidence to postal man- for special projects and organizational agement and attorneys in connection initiatives. with administrative and civil actions. (5) Participating in senior manage- (6) Providing security and defense co- ment meetings as appropriate. ordination for the Postal Service.

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(7) Maintaining liaison with inves- more United States Courts of Appeals tigative and law enforcement agencies, for review of a decision by the Gov- and all levels of government on mat- ernors within ten days of the effective ters of mutual interest. date of that action for the purpose of (c) The Inspection Service through judicial review, the General Counsel the Chief Postal Inspector shall will notify the U.S. Judicial Panel on promptly report to the Inspector Gen- Multidistrict Litigation of any peti- eral the significant activities being tions that were received within the 10- carried out by the Inspection Service day period, in accordance with the ap- and on all other matters as required by plicable rule of the panel. law. (iii) For the purpose of determining [56 FR 55823, Oct. 30, 1991, as amended at 67 whether a petition for review has been FR 16024, Apr. 4, 2002] received within the 10-day period under paragraph (b)(5)(ii) of this section, the § 224.4 General Counsel. petition shall be considered to be re- (a) General. The General Counsel ceived on the date of delivery, if per- heads the Law Department; the Gov- sonally delivered. If the delivery is ac- ernment Relations Department reports complished by mail, the date of receipt to the General Counsel. shall be the date noted on the return (b) Law Department. The Law Depart- receipt card. ment is responsible for: (6) Acting as agent for the receipt of (1) Serving as legal advisor to the en- legal process on behalf of the Postal tire Postal Service and interpreting Service and the Postmaster General laws as they relate to the Postal Serv- and other officials resulting from the ice, except as provided in § 230.1(c). performance of their official functions. (2) Making rulings, giving advisory (7) Administering the Ethical Con- opinions, drafting or approving legal duct Program. instruments, instituting and maintain- (c) Government Relations Department. ing administrative proceedings, rep- The Government Relations Department resenting the Postal Service in adminis responsible for: istrative proceedings, and in judicial (1) Maintaining cooperative relation- proceedings, as authorized, except as ships among Congress, Federal agen- provided in § 230.1(c). cies within the Executive Branch, the (3) Preparing the legislative program White House, and state and local gov- of the Postal Service and publishing ernment officials. regulations in the FEDERAL REGISTER. (2) Advising postal officials on legis- (4) Administering activities under lative or other policy matters in public the Tort Claims Act, and other per- areas involving congressional commit- sonal injury and physical loss claims. tees or individual members of Con- (5)(i) Receiving service of petitions gress. for review of a final agency order in an (3) Maintaining liaison with members appropriate Federal circuit court of ap- of Congress and their staffs to ex- peals. Any aggrieved person filing a pe- change information on specific legisla- tition for review of a decision of the tion and Postal Service policies and op- Governors within 10 days of issuance of erations. the Governors’ decision must ensure that a court-stamped copy of the peti- [52 FR 46998, Dec. 11, 1987, as amended at 56 tion for review is received by the Gen- FR 785, Jan. 9, 1991; 56 FR 55823, Oct. 30, 1991; eral Counsel within that 10-day period 67 FR 16024, Apr. 4, 2002] in order to qualify for participation in § 224.5 Planning Department. the random selection process established in 28 U.S.C. 2112(a) for deter- The Planning Department is respon- mining the appropriate court of ap- sible for: peals to review an agency final order (a) Forecasting trends and develop- when petitions for review of that order ments, both external and internal, are filed in more than one court of ap- which may have an impact on the Post- peals. al Service environment. (ii) If the General Counsel receives (b) Assisting departments in devel- two or more petitions filed in two or oping plans in accordance with goals

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and objectives set by the Postmaster optimum use and benefits of automated General and the Board of Governors. equipment. (c) Establishing and maintaining the (b) Operations Systems and Perform- planning calendar. ance Department. The Operations Sys- (d) Coordinating the strategic plan- tems and Performance Department is ning process. responsible for: (e) Assisting in the development of (1) Defining, operating, and main- comprehensive and effective plans. taining the major operating perform- (f) Identifying and evaluating eco- ance management systems. nomic, political, social, technical, and (2) Setting goals, analyzing trends, market trends and events. and assessing performance in key oper- (g) Developing a projection of long- ations areas. range business targets as a basis for (3) Identifying and resolving oper- setting goals and objectives. ating problems. (h) Formulating alternative business (4) Developing operating manage- strategies. ment systems, computer models, and (i) Conducting special economic stud- new methods for distribution and deliv- ies. ery. (5) Directing the acquisition, deploy- [54 FR 29708, July 14, 1989] ment, maintenance, and disposal of postal vehicles. PART 225—ORGANIZATIONS RE- (6) Directing the maintenance and PORTING DIRECTLY TO THE DEP- improvement of address information UTY POSTMASTER GENERAL and related systems. (c) Engineering and Technical Support Department. The Engineering and Tech- AUTHORITY: 39 U.S.C. 203, 204, 401(2) 402, 403, nical Support Department is respon- 404, and 409. sible for: (1) Planning and approving all oper- § 225.1 Operations Support Group. ating requirements and standards for The Operations Support Group is mechanized and automated facilities. headed by an SAPMG. The group con- (2) Establishing national policy and sists of three departments, each report- programs for the maintenance of facili- ing to the SAPMG. ties and mail processing, customer (a) Delivery, Distribution, and Trans- services, and delivery services related portation Department. The Delivery, mechanization. Distribution, and Transportation De- (3) Maintaining a technical and field partment is responsible for: support capacity for new and modified (1) Developing and implementing na- equipment and providing for the over- tional policies, procedures, and short- haul of major mail processing equip- and long-range operational plans for ment. the collection, distribution, transpor- (d) The Regional Postmasters Gen- tation, and delivery of all classes of do- eral report to the Deputy Postmaster mestic, international, and military General. mail. (2) Developing and implementing na- [54 FR 29708, July 14, 1989] tional policies, procedures, and short- and long-range operational plans for PART 226—GROUPS AND DEPART- field retail operations. MENTS REPORTING TO THE ASSO- (3) Establishing and controlling na- CIATE POSTMASTERS GENERAL tional (inter-regional) distribution and transportation networks. Sec. (4) Establishing requirements and 226.1 The Associate Postmaster General managing the acquisition and deploy- (Systems). ment of mail transport equipment. 226.2 Facilities and Supply Group. 226.3 Human Resources Group. (5) Developing procurement policies 226.4 Marketing and Communications for the transportation of mail. Group. (6) Managing the development of 226.5 Associate Postmaster General (Inter- policies and procedures to ensure the national).

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AUTHORITY: 39 U.S.C. 203, 204, 401(2), 402, (5) Providing payroll processing and 403, 404, and 409. distribution services and general ac- SOURCE: 52 FR 46999, Dec. 11, 1987, unless counting services. otherwise noted. (6) Providing technical solutions to information requirements. § 226.1 The Associate Postmaster Gen- (e) Judicial Officer. eral (Systems). (1) The Judicial Officer is responsible The Associate Postmaster General for: (Systems) is responsible for managing (i) The performance of quasi-judicial groups, headed by an SAPMG, and de- duties and the issuance of final deci- partments which make up the support sions and orders. functions of the Postal Service. (ii) Serving as the agency for the purposes of the requirements of the Ad- [54 FR 29709, July 14, 1989] ministrative Procedure Act. (iii) Presiding at the reception of evi- § 226.2 Facilities and Supply Group. dence as provided in rules of practice. (a) General. The Administrative Serv- (iv) Revising or amending the rules ices Group consists of three depart- governing eligibility to practice before ments headed by an Assistant Post- the Postal Service, revising or amend- master General and one department ing Postal Service rules of practice headed by the Judicial Officer. governing proceedings conducted under (b) Facilities Department. The Facili- the Administrative Procedure Act, and ties Department is responsible for: issuing and revising rules of practice (1) Designing, constructing, modi- for other proceedings. fying, and repairing facilities. (v) Serving as Chairman of the Board (2) Leasing, purchasing, managing, of Contract Appeals and performing the and disposing of real estate. functions of the agency head under the (3) Developing policies, procedures, Contract Disputes Act of 1978, as and new technology in support of fa- amended. cilities programs. (vi) Administratively supervising Ad- (4) Maximizing the use of real estate ministrative Law Judges and hearing assets. appeals from their decisions. (c) Procurement and Supply Depart- (2) Board of Contract Appeals is re- ment. The Procurement and Supply De- sponsible for processing, hearing and partment is responsible for: issuing final agency decisions in con- (1) Developing, implementing, and re- nection with contract disputes. viewing procurement and contracting (3) Office of Administrative Law policies and procedures. Judges. Administrative Law Judges are (2) Developing, implementing, and re- responsible for presiding at administra- viewing warehousing and inventory of tive hearings as delegated by the Judi- equipment and supplies. cial Officer. (3) Directing the day-to-day mainte- [52 FR 46999, Dec. 11, 1987; 54 FR 29709, July nance and repair of the headquarters 14, 1989] building. (d) Information Resource Management § 226.3 Human Resources Group. Department. The Information Resource (a) General. The Human Resources Management Department is respon- Group consists of three departments, sible for: each reporting to the SAPMG. (1) Providing data processing support (b) Employee Relations Department. services including systems analysis and The Employee Relations Department is programming. responsible for: (2) Establishing policy and proce- (1) Managing programs and policies dures on the use of computers and tele- for new and revised organization struc- communications. tures, staffing patterns, and job de- (3) Guiding the development of infor- scriptions. mation systems. (2) Establishing outside recruitment (4) Managing a national data and and selection and internal promotion voice communications systems. procedures.

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(3) Managing all employee compensa- field marketing organization of pro- tion and benefits programs and poli- grams designed for principal customer cies. segments of national, key, major, and (4) Administering all equal employ- local accounts. ment opportunity and affirmative ac- (c) Communications Department. The tion programs. Communications Department is re- (5) Managing medical, safety, and in- sponsible for: jury compensation programs and poli- (1) Planning, approving, and man- cies. aging public affairs programs. (c) Labor Relations Department. The (2) Providing information to employ- Labor Relations Department is respon- ees through in-house publication of sible for: newsletters, posters, films, videotapes, (1) Negotiating and interpreting col- and other periodicals. lective bargaining agreements. (2) Coordinating programs that affect (3) Providing senior management bargaining unit employees. with assistance in the development and (3) Developing policies and proce- production of presentations and dures for administering the national speeches. grievance and arbitration programs. (d) Philatelic and Retail Services De- (4) Administering programs to im- partment. The Philatelic and Retail prove the quality of working life in the Services Department is responsible for: Postal Service. (1) Designing, manufacturing, and (d) Training and Development Depart- distributing postage stamps and sta- ment. The Training and Development tionery items. Department is responsible for: (2) Establishing and implementing (1) Developing all course materials philatelic marketing programs. for craft, supervisory, and management (3) Managing mail order services for employees training. philatelic products. (2) Providing training for employees (4) Managing special programs to pro- at the Technical Training Center and mote philately and philatelic products the William F. Bolger Management and services. Academy, and at other training cen- (5) Establishing policy, business ters. (3) Designing in-service employee de- strategy, and procedures for the retail velopment programs. sale of postal services, products, and postage and the acceptance of mail at [52 FR 46999, Dec. 11, 1987, as amended at 54 retail outlets. FR 29709, July 14, 1989] (e) Technology Resource Department. § 226.4 Marketing and Communica- The Technology Resource Department tions Group. is headed by the Consumer Advocate who reports to the Associate Post- (a) General. The Marketing and Com- master General, and is responsible for: munications Group is headed by an (1) Developing long-term technology SAPMG. The group consists of three departments, each reporting to the development plans to meet changing SAPMG. technological trends and developments. (b) Marketing Department. The Mar- (2) Managing research and develop- keting Department is responsible for: ment directed to the application of new (1) Market research, market analysis, concepts to Postal Service functions. customer feedback, and marketing (3) Monitoring the technological management information system sup- interaction between the Postal Service port. and the outside environment. Respond- (2) Product analysis, planning, devel- ing to customer inquiries and com- opment, and program management ac- plaints regarding postal products and tivities, including the development of services. advertising and sales promotion sup- (f) Consumer Affairs Department. The port. Consumer Affairs Department is head- (3) Development and management of ed by the Consumer Advocate who re- sales and sales promotion programs ports to the Associate Postmaster Gen- that support implementation by the eral (Systems), and is responsible for:

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(1) Responding to customer inquiries SOURCE: 52 FR 47000, Dec. 11,1987, unless and complaints regarding postal prod- otherwise noted ucts and services. (2) Developing, with the Communica- § 227.1 General. tions Department, programs to inform Headquarters Related Field Units are the public on mailing programs, proce- typically single function organizations dures, and policies. that report directly to Headquarters (3) Tracking service problems and and serve the entire Postal Service. identifying trends to resolve operating programs. [52 FR 47000, Dec. 11, 1987, as amended at 54 FR 29709, July 14, 1989] [52 FR 46999, Dec. 11, 1987, as amended at 54 FR 29709, July 14, 1989] § 227.2 Inspection Service. § 226.5 Associate Postmaster General (a) General. The Inspection Service is (International). divided into regional and divisional entities. (a) General. The Associate Post- (b) Inspection Service—Region. The In- master General (International) is re- spection Service at the regional level is sponsible for directing activities de- responsible for: signed to increase international postal (1) Protecting the mails, enforcement business, and for the relationship with of Postal laws, facility and employee foreign postal administrations. security, and internal auditing. (b) International Postal Affairs Depart- ment. The International Postal Affairs (2) Managing the accomplishment of Department reports to the Associate national programs and policies. Postmaster General (International) (3) Coordinating with other law en- and is responsible for: forcement organizations on security, (1) Representing the United States in audit, and other law enforcement mat- the Universal Postal Union (UPU) and ters. the Postal Union of the Americas and (c) Inspection Service—Division. The Spain (PUAS). Inspection Service at the division level (2) Providing liaison with all foreign is responsible for all inspection and in- postal administrations. vestigation activities within the divi- (3) Negotiating bilateral and multi- sion area served. lateral postal treaties and agreements [52 FR 47000, Dec. 11, 1987, as amended at 54 with foreign governments. FR 29709, July 14, 1989] (4) Providing policy guidance on all aspects of international postal affairs. § 227.3 Procurement and Supply De- partment. [54 FR 29709, July 14, 1989] (a) Materiel Distribution Centers. There PART 227—HEADQUARTERS are two materiel distribution centers, one at Somerville, New Jersey, and one RELATED FIELD UNITS at Topeka, Kansas. Materiel Distribu- tion Centers are responsible for: Sec. 227.1 General. (1) Procuring, storing, and issuing 227.2 Inspection Service. basic supplies for use in all postal fa- 227.3 Procurement and Supply Department. cilities. 227.4 Engineering and Technical Support (2) Arranging for the transportation Department. of supplies to facilities. 227.5 Employee Relations Department. (b) Mail Equipment Shop. The Mail 227.6 Training and Development Depart- ment. Equipment Shop, located in Wash- 227.7 Information Resource Management ington, DC, is responsible for: Department. (1) Manufacturing mail bags, sacks, 227.8 Operations Systems and Performance and pouches. Department. (2) Manufacturing locks and keys. 227.9 General Counsel. (3) Manufacturing hardware items 227.10 Controller Department. 227.11 Philatelic and Retail Services De- used for mail security and for customer partment. service lobby equipment. AUTHORITY: 39 U.S.C. 401, 402, 403, and 404. [54 FR 29709, July 14, 1989]

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§ 227.4 Engineering and Technical (b) William F. Bolger Management Support Department. Academy. The William F. Bolger Man- (a) Maintenance Technical Support agement Academy, located in Poto- Center (MTSC). The Maintenance Tech- mac, MD, is responsible for: nical Support Center, located in Nor- (1) Developing training materials for man, OK, is responsible for: supervisors, postmasters, and other (1) Developing policies, programs, managerial employees. methods, and standards for the mainte- (2) Performing training for manage- nance of mail processing equipment. rial employees. (2) Issuing guidelines to field man- [54 FR 29710, July 14, 1989] agers on building systems and mail processing equipment maintenance § 227.7 Information Resource Manage- procedures. ment Department. (b) Engineering and Development Cen- (a) National Information Systems Sup- ter. The Engineering and Development port Center. The National Information Center, located in Merrifield, Virginia, Systems Support Center, located in Ra- is responsible for: leigh, NC, is responsible for: (1) Providing engineering and near- (1) Designing new large-scale auto- term development support for letter mated systems and writing the sup- mail equipment, packaged mail equip- porting program code. ment, delivery and retail equipment, (2) Managing the nationwide voice and associated systems and software. and data communications system. (2) Directing near-term development (b) Postal Data Centers. The Postal and modifications to equipment and Data Centers, located in Minneapolis, components to increase efficiency, reli- MN, New York, NY, St. Louis, MO, San ability, and to improve safety. Mateo, CA, and Wilkes-Barre, PA, are (3) Conducting tests to evaluate new responsible for: equipment for Postal service use; per- (1) Systems analysis, computer pro- forming failure analyses on equipment gramming, and other systems develop- and components. ment activities. (4) Providing applied engineering to (2) Accounting, accounts payable, customize commercial technology and payroll, money order disbursing, equipment for postal use. claims and loss settlement, and other financial services. [54 FR 29710, July 14, 1989] (3) Data processing and related com- § 227.5 Employee Relations Depart- puter services. ment. [54 FR 29710, July 14, 1989] National Test Administration Center (NTAC). The National Test Adminis- § 227.8 Operations Systems and Per- tration Center, located in Alexandria, formance Department. VA, is responsible for: Address Information Center. The Ad- (a) Receipt and processing of requests dress Information Center, located in to give examinations. Memphis, TN, is responsible for: (b) Preparing and distributing reg- (a) Developing policies for and pro- isters of eligible applicants and notices viding technical guidance and com- of ratings. puter support to field address Informa- tion Systems units and field Computer- [54 FR 29710, July 14, 1989] ized Forwarding System units. § 227.6 Training and Development De- (b) Providing nationwide service and partment. technical guidance for postal customers requiring support related to ad- (a) Technical Training Center. The dress information systems. Technical Training Center, located in Norman, OK, is responsible for: [54 FR 29710, July 14, 1989] (1) Developing training materials for craft employees in maintenance and re- § 227.9 General Counsel. lated crafts. Regional Counsels. The Regional (2) Performing training for technical Counsels are responsible for providing employees. legal representation services within a

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regional geographic area, including 228.6 Rates and Classification Department. representation before the Board of Con- 228.7 Human Resources Group. tract Appeals, liaison with U.S. Attor- AUTHORITY: 39 U.S.C. 401, 402, 403, and 404. neys on contract, real estate, and tort litigation, as well as personnel related SOURCE: 52 FR 47001, Dec. 11, 1987, unless otherwise noted. matters, such as labor/management relations, Equal Employment Oppor- § 228.1 General. tunity, Merit Systems Protection Board, National Labor Relations Service Centers typically serve a re- Board, and district court actions. gional area only and report to headquarters, providing technical guidance [54 FR 29710, July 14, 1989] and support to field division employees and carrying out the day-to-day re- § 227.10 Controller Department. sponsibilities of a function. International Accounts Center. The International Accounts Center, located § 228.2 Engineering and Technical in New York, NY, is responsible for re- Support Department—Maintenance viewing, approving, settling, and audit- Overhaul and Technical Service ing international mail handling and Centers (MOTSC). transportation accounts for contracts Maintenance Overhaul and Technical and agreements entered into by the Service Centers are responsible for: Postal service. (a) Refurbishing mail processing [54 FR 29710, July 14, 1989] equipment such as letter sorting machines, facer cancellers, and related § 227.11 Philatelic and Retail Services equipment. Department. (b) Providing technical advice and (a) Philatelic Units. The Philatelic guidance to field maintenance employ- Sales Division, located in Merrifield, ees on procedures and practices to fol- VA, is a large mail and telephone order low. sales operation for stamps and other [54 FR 29710, July 14, 1989] philatelic products; it is supported by an order fulfillment unit in Kansas § 228.3 Delivery, Distribution, and City, MO, which is responsible for the Transportation Department—Trans- filling and shipping of domestic and portation Management Service Cen- international mail orders for philatelic ters (TMSC). products. Transportation Management Service (b) Stamped Envelope Unit. The Centers are responsible for: Stamped Envelope Unit, located in Wil- (a) Procuring mail transportation liamsburg, PA, processes, distributes, services between mail processing cen- and certifies billing or postmaster acters. countability for direct orders of all (b) Controlling the inventory of stamped envelope products marketed empty mail equipment. by the Postal service. (c) Coordinating the movement of [54 FR 29710, July 14, 1989] mail between mail processing centers, bulk mail centers (BMCs), management PART 228—SERVICE CENTERS sectional centers (MSCs), and field divisions. Sec. [54 FR 29710, July 14, 1989] 228.1 General. 228.2 Engineering and Technical Support § 228.4 Facilities Department—Facili- Department—Maintenance Overhaul and ties Service Centers. Technical Service Centers (MOTSC). 228.3 Delivery, Distribution, and Transpor- Facilities Service Centers are respon- tation Department—Transportation sible for: Management Service Centers (TMSC). (a) Developing functional design 228.4 Facilities Department—Facilities specifications for new or altered facili- Service Centers. 228.5 Procurement and Supply ties. Department—Procurement and Materiel (b) Investigating and evaluating sites Management Service Centers. for proposed postal facilities.

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(c) Purchasing, leasing, disposing of, (e) Coordinating the scheduling of all and managing real estate and facili- arbitration cases with arbitrators, ties. union representatives, and field em- (d) Contracting for the design and ployees. construction of facilities. [54 FR 29711, July 14, 1989] [54 FR 29710, July 14, 1989] PART 229—FIELD ORGANIZATIONS § 228.5 Procurement and Supply Department—Procurement and Ma- Sec. teriel Management Service Centers. 229.1 Regions. Procurement and Materiel Manage- 229.2 Field Divisions. ment Service Centers are responsible 229.3 Management Sectional Centers (MSCs). for: 229.4 Other Field Organizations. (a) Contracting for supplies, services, and equipment. AUTHORITY: 39 U.S.C. 401, 402, 403, and 404. (b) Maintaining systems for SOURCE: 52 FR 47002, Dec. 11, 1987, unless inventorying equipment and supplies. otherwise noted. [54 FR 29711, July 14, 1989] § 229.1 Regions. (a) General. The Regions are respon- § 228.6 Rates and Classification De- partment. sible for monitoring the performance of postal operations; assessing long-term Rates and Classification Service Cen- solutions to operating problems; and ters are responsible for: performing long-range operational (a) Managing, for a geographic area, planning. the rates and classification activities (b) Functional Units. Each region is related to rates schedules, mail classi- headed by a Regional Postmaster Gen- fication, and statistical systems, in- eral who reports to the Deputy Post- cluding guiding and monitoring bulk master General. Each region is orga- mail acceptance, mailing require- nized into five functions: Finance, ments, data collection programs in di- Human Resources, Marketing and Com- visions, and providing classification munications, Operations Support, and rulings. Planning, as follows: (b) Providing decisions on authoriza- (1) Finance is responsible for all actions and rulings that enable cus- counting, budgeting, financial analysis, tomers to exercise mailing privileges and management information pro- for various classes of mail and service. grams. (2) Human Resources is responsible [54 FR 29711, July 14, 1989] for all employee and labor relations § 228.7 Human Resources Group. programs. (3) Marketing and Communications is Human Resources Service Centers responsible for commercial accounts are responsible for: and merchandising programs, market (a) Processing personnel actions and and product analysis, and for providing maintaining personnel records for the information to the public and employ- regional office and the service centers. ees. (b) Implementing the Human Re- (4) Operations Support is responsible sources Information System (HRIS) in for operations planning and monitoring the field and training all users. the performance of the mail processing (c) Providing administrative support, network. technical guidance, and case processing (5) Planning is responsible for long- for Equal Employment Opportunity range planning for the region and for (EEO), Merit Systems Protection support services to the regional build- Board (MSPB), and nonbargaining ap- ing. peals. (c) Regional areas—(1) Central region. (d) Overseeing all safety and health The headquarters for the Central Re- programs and issues, and responding to gion is in Chicago, IL. The regional incidents or inquiries involving indus- area is made up of the states of Colo- trial hygiene. rado, Illinois, Indiana, Iowa, Kansas,

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Michigan, Minnesota, Missouri, Ne- (2) City Operations is responsible for braska, North Dakota, South Dakota, all mail processing within the host Wisconsin, and Wyoming. Field Division facility, including sta- (2) Eastern region. The headquarters tions and branches and air mail oper- for the Eastern Region is in Philadel- ations; fleet operations; and plant and phia, PA. The regional area is made of equipment engineering. the states of Delaware, Kentucky, (3) Operations Support is responsible Maryland, New Jersey (ZIP Code areas for providing staff support to the oper- 080–084, 189, 193 and 194), North Caro- ations function. The functions in oper- lina, Ohio, South Carolina (except ZIP ation support include logistics and dis- Code areas 298 and 299), Virginia, West tribution systems management, indus- Virginia and Washington, DC. trial engineering, address information (3) Northeast region. The headquarters programs, delivery services programs for the Northeast Region is in Windsor, and maintenance support. CT. The regional area is made up of the (4) Marketing and Communications states of Connecticut, Maine, Massa- plans and implements Postal Service chusetts, New Jersey (ZIP Code areas marketing strategies, account manage- 074–079 and 085–089) New York, Rhode ment, technical sales support, retail Island, Vermont and Puerto Rico. marketing, communications programs, (4) Southern region. The headquarters merchandising and sales information for the Southern Region is in Memphis, systems, and employee communica- TN. The regional area is made up of the tions and community relations. It di- states of Alabama, Arkansas, Florida, rects the consumer affairs program, Georgia, Louisiana, Mississippi, Okla- provides marketing data to operations homa, South Carolina (ZIP Code areas and other functional areas on customer 298 and 299), Tennessee and Texas (ex- demand, and recommends locations of cept ZIP Code areas 797–799). retail facilities, hours of operation, (5) Western region. The headquarters collection boxes, and similar retail and for the Western Region is in San delivery programs. Bruno, CA. The regional area is made (5) Human Resources is responsible up of the states of Alaska, Arizona, for labor relations, EEO complaint California, Hawaii, Idaho, Montana, processing, employment and develop- Nevada, New Mexico, Oregon, Texas ment, training, compensation and (ZIP areas 797–799), Utah and Wash- staffing, affirmative action, and safety ington. and health. [52 FR 47002, Dec. 11, 1987, as amended at 54 (6) Support Services is responsible for FR 29711, July 14, 1989] procurement; materiel management; purchase, lease, and management of § 229.2 Field Divisions. real estate and facilities; and design (a) General. The field divisions are re- and construction of new and altered fa- sponsible for the day-to-day manage- cilities. ment of all operations and facilities (7) Field Operations is responsible for within a geographic area. Each field di- the management and evaluation of vision is headed by a Field Division grade 24 and below associate offices General Manager/Postmaster who re- that report to the host division. This ports to the Regional Postmaster Gen- includes the development of operating eral. budgets and disbursement of funds; in- (b) Functional Units. Each division is vestigation and correction of oper- organized into seven functions: Con- ational, service, budget, productivity troller, City Operations, Operations and efficiency problems; and providing Support, Marketing and Communica- technical assistance. tions, Human Resources, Support Serv- [52 FR 47002, Dec. 11, 1987, as amended at 54 ices, and Field Operations. Responsibil- FR 29711, July 14, 1989; 67 FR 16024, Apr. 4, ities are as follows: 2002] (1) The Controller is responsible for the operation of all management infor- § 229.3 Management Sectional Centers mation systems, accounting services, (MSCs). timekeeping, financial analysis, com- (a) General. Each Management Sec- pliance, and statistical programs. tional Center is headed by an MSC

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Manager/Postmaster who reports to a (i) MSC V—Associate Office, level 22 Field Division General Manager/Post- and above. master. (ii) MSC IV—Associate Office, level (b) Functional Units. Each Manage- 21 and above. ment Sectional Center is organized (iii) MSC III—Associate Office, level into six functions: Finance, City Oper- 20 and above. ations, Operations Services, Mar- keting, Human Resources, and Field [54 FR 29711, July 14, 1989] Operations, as follows: § 229.4 Other Field Organizations. (1) Finance is responsible for the operation of all management information (a) Bulk Mail Centers (BMCs). Bulk systems, accounting and budget, Mail Centers serve a specific geo- timekeeping, financial analysis, statis- graphic area and are headed by a man- tical programs, procurement and office ager who reports to the Field Division services, auditing, and compliance. General Manager/Postmaster. BMCs (2) City Operations is responsible for are responsible for processing certain all mail processing within the MSC fa- types of second- and third-class mail in cility including stations and branches bulk form and parcel post mail, nor- and air mail operations; plant and mally in bulk or piece form. equipment engineering; fleet oper- (b) Associate Offices. Associate offices ations; vehicle operations and mainte- are headed by a postmaster who re- nance. ports to a Director, Field Operations, (3) Operations Services is responsible in an MSC or a field division. Associate for providing staff support to the oper- offices are responsible for the receipt, ations function. The primary functions delivery, and dispatch of all classes of in operations services include quality mail for geographic areas normally en- control, logistics, address information compassing the boundaries of a city or systems, delivery services, and indus- town. trial engineering. (4) Marketing plans and implements [54 FR 29711, July 14, 1989] Postal Service marketing strategies, account management, technical sales Inspection Service Requirements support, retail marketing, merchandising and sales information systems. PART 230—OFFICE OF INSPECTOR It provides marketing data to oper- GENERAL ations and other functional areas on customer demand, and recommends lo- Sec. cations of retail facilities, hours of op- 230.1 Establishment and authority. eration, collection boxes, and similar 230.2 Access to information and other re- retail and delivery programs. sponsibilities. (5) Human Resources is responsible 230.3 Cooperation with the Office of Inspec- for labor relations, EEO complaint tor General. processing, employment and develop- 230.4 Arrest and investigative powers of ment, training, compensation and criminal investigators. staffing, affirmative action, and safety 230.5 Release of information. and health. AUTHORITY: Inspector General Act of 1978, (6) Field Operations is responsible for as amended (Pub. L. 95–452, as amended), 5 the management and evaluation of as- U.S.C. App. 3; 39 U.S.C. 401(2). sociate offices that report to the Man- agement Sectional Center. This in- SOURCE: 67 FR 16025, Apr. 4, 2002, unless cludes the development of operating otherwise noted. budgets and disbursement of funds; in- § 230.1 Establishment and authority. vestigation and correction of operational, service, budget, productivity (a) There is established, pursuant to and efficiency problems; and providing the Inspector General Act of 1978, as technical assistance. Larger associate amended (5 U.S.C. App.3), and 39 U.S.C. offices report to the MSC Manager/ 410, an independent Office of Inspector Postmaster as follows: General.

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(b) The Inspector General reports di- (i) The Inspector General may hire rectly to the nine presidentially ap- and retain the services of expert con- pointed Governors and shall not be su- sultants and other personnel as nec- pervised by, nor report to, the Post- essary to fulfill the duties and respon- master General and/or any designee ap- sibilities of the Office. pointed by the Postmaster General. (j) Except as required by law, the (c) The Office of Inspector General Governors may not transfer to the In- includes an Inspector General, an As- spector General responsibility for per- sistant Inspector General for Audit, forming any of the program activities and an Assistant Inspector General for of the Postal Service. Investigations. The Office of Inspector General maintains its own legal coun- § 230.2 Access to information and sel independent of the Postal Service other responsibilities. Law Department for matters that are (a) The Inspector General has author- within the jurisdiction of the Office. ity to have access to all postal records, (d) The Office of Inspector General is reports, audits, reviews, documents, responsible for detecting and pre- papers, information, and other mate- venting fraud, waste, and abuse in the rial relating to any matter related to programs and operations of the Postal the responsibilities of the Inspector Service, and for reviewing existing and General; proposed legislation and regulations re- (b) The Inspector General shall be the lating to the programs and operations Investigating Official for purposes of of the Postal Service. the Program Fraud Civil Remedies Act. (e) The Inspector General has oversight responsibilities for all activities § 230.3 Cooperation with the Office of of the Postal Inspection Service. The Inspector General. Chief Postal Inspector must promptly (a) All Postal Service employees report to the Inspector General signifi- shall cooperate with all audits, re- cant activities and other information views, and investigations conducted by related to the Inspection Service as re- the Office of Inspector General. Delib- quired by law. erately submitting information known (f) The Inspector General has sole re- to be false or misleading to the Office sponsibility for directing the Office of of Inspector General or failing to co- Inspector General, including the au- operate with all audits, reviews, and thority to select, appoint, and employ investigations conducted by the Office such officers and employees that the of Inspector General may be grounds Inspector General deems necessary and for disciplinary or other legal action. appropriate to fulfill the mission of the (b) Any employee who has authority Office. In addition, the Inspector Gen- to take, direct another to take, rec- eral may delegate to such officers and ommend or approve any personnel ac- employees of the Inspector General tion shall not retaliate against any em- such powers, duties, and responsibil- ployee as a reprisal for cooperating and ities, as the Inspector General deems assisting with any Office of Inspector necessary and appropriate for the prop- General audit, review, or investigation er functioning of the Office. (including reporting facts or informa- (g) All employees in the Office of In- tion to the Office of Inspector General spector General shall take and sub- that leads to any audit, review, or in- scribe to the oath of office required of vestigation). all Postal Service employees under 39 U.S.C. 1011, and the Inspector General, § 230.4 Arrest and investigative powers or designee, is authorized to administer of criminal investigators. such oath and affirmation. Under the authority of 18 U.S.C. 3061, (h) The Inspector General has the au- criminal investigators employed by the thority to enter into contracts or other Office of Inspector General are author- arrangements with public agencies and ized to perform the following functions with private entities, and to make such in connection with their official duties: payments as may be necessary to carry (1) Serve warrants and subpoenas out the duties and responsibilities of issued under the authority of the the Office of Inspector General. United States;

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(2) Make arrests without warrant for that contain proprietary information offenses against the United States will not be released by the Inspector committed in their presence; General without consultation with the (3) Make arrests without warrant for appropriate Postal Service official re- felonies cognizable under the laws of sponsible for the record. the United States if they have reasonable grounds to believe that the person PART 231—PROTECTION OF POST to be arrested has committed or is OFFICES committing such a felony; (4) Carry firearms; and Sec. (5) Make seizures of property as pro- 231.1 Responsibility. vided by law. 231.2 Security Control Officer.

§ 230.5 Release of information. § 231.1 Responsibility. (a) The Office of Inspector General is (a) The protection of mail, postal responsible for maintaining and storing funds, and property is a responsibility its own records and for assuring com- of every postal employee. pliance with applicable records man- (b) The Chief Postal Inspector is des- agement, retention, and disclosure re- ignated as the Security Officer for the quirements. U.S. Postal Service. That official is re- (b) The Inspector General or a des- sponsible for the issuance of instruc- ignee serves as the official custodian of tions and regulations pertaining to se- the records and documents of the Office curity requirements within the Postal of Inspector General and is responsible Service. for administering the rules and regula- (39 U.S.C. 401) tions relating to public availability of Postal Service Office of Inspector Gen- [36 FR 4762, Mar. 12, 1971] eral records insofar as the information § 231.2 Security Control Officer. is subject to the provisions of the Free- dom of Information Act, contained in The postmaster or a supervisor des- Section 552 of Title 5 of the U.S. Code ignated by the postmaster shall act as and 39 U.S.C. 410 (c), and/or the Privacy Security Control Officer for each post Act, Section 552a of Title 5 of the U.S. office. The Security Control Officer Code. shall be responsible for the general se- (c) Requests for records and informa- curity of the post office, its stations tion under the Freedom of Information and branches, in accordance with rules Act or Privacy Act should be sub- and regulations issued by the Chief mitted in writing to the Office of In- Postal Inspector. spector General, Freedom of Informa- (39 U.S.C. 401) tion/Privacy Act Officer, located at [36 FR 4762, Mar. 12, 1971] 1735 N. Lynn Street, Arlington, Vir- ginia, 22209–2020. (d) The Office of Inspector General PART 232—CONDUCT ON POSTAL shall comply with and adhere to the PROPERTY procedures governing the release of information maintained by the U.S. AUTHORITY: 18 U.S.C. 13, 3061; 21 U.S.C. 802, Postal Service as set forth in Part 265 844; 39 U.S.C. 401, 403(b)(3), 404(a)(7); 40 U.S.C. and related provisions of these regula- 318, 318a, 318b, 318c; Pub. L. 104–208, 110 Stat. tions to the extent such procedures do 1060. not conflict with any provision in this part. § 232.1 Conduct on postal property. (e) Appeals from the denial of any re- (a) Applicability. This section applies quest for information should be di- to all real property under the charge rected to the General Counsel for the and control of the Postal Service, to all Office of Inspector General, who is re- tenant agencies, and to all persons en- sponsible for deciding any timely ap- tering in or on such property. This sec- peals authorized under this section. tion shall be posted and kept posted at (f) Postal Service records in the cus- a conspicuous place on all such prop- tody of the Office of Inspector General erty.

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(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 obstructs the directly to a postal facility’s customer usual use of entrances, foyers, cor- mailing acceptance area and deposited ridors, offices, elevators, stairways, in the mail are not subject to inspec- and parking lots, or which otherwise tion, except as provided by section 274 tends to impede or disturb the public of the Administrative Support Manual. employees in the performance of their A person arrested for violation of this duties, or which otherwise impedes or section may be searched incident to disturbs the general public in that arrest. transacting business or obtaining the (2) Vehicles and their contents services provided on property, is pro- brought into, while on, or being re- hibited. moved from restricted nonpublic areas (f) Gambling. Participating in games are subject to inspection. A promi- for money or other personal property, nently displayed sign shall advise in the operation of gambling devices, the advance that vehicles and their con- conduct of a lottery or pool, or the sell- tents are subject to inspection when ing or purchasing of lottery tickets, is entering the restricted nonpublic area, prohibited on postal premises. This while in the confines of the area, or prohibition does not apply to the vend- when leaving the area. Persons entering or exchange of State Lottery tick- ing these areas who object and refuse ets at vending facilities operated by li- to consent to the inspection of the ve- censed blind persons where such lot- hicle, its contents, or both, may be de- teries are authorized by state law. (See nied entry; after entering the area Domestic Mail Manual 123.351 and without objection, consent shall be im- 123.42; Administrative Support Manual plied. A full search of a person and any 221.42; Regional Instructions, Part 782, vehicle driven or occupied by the per- section IV G 2c.) son may accompany an arrest. (3) Except as otherwise ordered, prop- (g) Alcoholic beverages, drugs, and erties must be closed to the public smoking. after normal business hours. Properties (1) A person under the influence of an also may be closed to the public in alcoholic beverage or any drug that has emergency situations and at such other been defined as a ‘‘controlled sub- times as may be necessary for the or- stance’’ may not enter postal property derly conduct of business. Admission to or operate a motor vehicle on postal properties during periods when such property. The possession, sale, or use of properties are closed to the public may any ‘‘controlled substance’’ (except be limited to authorized individuals when permitted by law) or the sale or who may be required to sign the reg- use of any alcoholic beverage (except ister and display identification docu- as authorized by the Postmaster Gen- ments when requested by security force eral or designee) on postal premises is personnel or other authorized individ- prohibited. The term ‘‘controlled sub- uals. stance’’ is defined in section 802 of title (c) Preservation of property. Improp- 21 U.S.C. erly disposing of rubbish, spitting, cre- (2) Smoking (defined as having a ating any hazard to persons or things, lighted cigar, cigarette, pipe, or other throwing articles of any kind from a smoking material) is prohibited in all building, climbing upon the roof or any postal buildings and office space, in- part of a building, or willfully destroy- cluding public lobbies. ing, damaging, or removing any prop- (h) Soliciting, electioneering, collecting erty or any part thereof, is prohibited. debts, vending, and advertising. (1) Solic- (d) Conformity with signs and direc- iting alms and contributions, cam- tions. All persons in and on property paigning for election to any public of- shall comply with official signs of a fice, collecting private debts, soliciting prohibitory or directory nature, and and vending for commercial purposes with the directions of security force (including, but not limited to, the

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vending of newspapers and other publi- behalf of any candidate or political cations), displaying or distributing party for any public office. commercial advertising, soliciting sig- (ii) Absolutely no partisan or polit- natures on petitions, polls, or surveys ical literature may be available, dis- (except as otherwise authorized by played, or distributed. This includes Postal Service regulations), and imped- photographs, cartoons, and other ing ingress to or egress from post of- likenesses of elected officials and can- fices are prohibited. These prohibitions didates for public office. do not apply to: (iii) The registration is permitted (i) Commercial or nonprofit activi- only in those areas of the postal prem- ties performed under contract with the ises regularly open to the public. Postal Service or pursuant to the pro- (iv) The registration must not inter- visions of the Randolph-Sheppard Act; fere with the conduct of postal busi- (ii) Posting notices on bulletin ness, postal customers, or postal oper- boards as authorized in § 243.2(a) of this ations. chapter; (v) The organization conducting the (iii) The solicitation of Postal Serv- voter registration must provide and be ice and other Federal military and ci- responsible for any equipment and sup- vilian personnel for contributions by plies. recognized agencies as authorized by (vi) Contributions may not be solicited. the Manual on Fund Raising Within (vii) Access to the workroom floor is the the Federal Service, issued by the prohibited. Chairman of the U.S. Civil Service (viii) The registration activities are Commission under Executive Order limited to an appropriate period before 10927 of March 13, 1961. an election. (2) Solicitations and other actions (5) Except as part of postal activities which are prohibited by paragraph or activities associated with those per- (h)(1) of this section when conducted on mitted under paragraph (h)(4) of this Postal Service property should not be section, no tables, chairs, freestanding directed by mail or telephone to postal signs or posters, structures, or fur- employees on Postal Service property. niture of any type may be placed in The Postal Service will not accept or postal lobbies or on postal walkways, distribute mail or accept telephone steps, plazas, lawns or landscaped calls directed to its employees which areas, driveways, parking lots, or other are believed to be contrary to para- exterior spaces. graph (h)(1) of this section. (i) Photographs for news, advertising, (3) Leafleting, distributing lit- or commercial purposes. Except as pro- erature, picketing, and demonstrating hibited by official signs or the direc- by members of the public are prohib- tions of security force personnel or ited in lobbies and other interior areas other authorized personnel, or a Fed- of postal buildings open to the public. eral court order or rule, photographs Public assembly and public address, ex- for news purposes may be taken in en- cept when conducted or sponsored by trances, lobbies, foyers, corridors, or the Postal Service, are also prohibited auditoriums when used for public meet- in lobbies and other interior areas of ings. Other photographs may be taken postal building open to the public. only with the permission of the local (4) Voter registration. Voter registra- postmaster or installation head. tion may be conducted on postal prem- (j) Dogs and other animals. Dogs and ises only with the approval of the post- other animals, except those used to as- master or installation head provided sist persons with disabilities, must not that all of the following conditions are be brought upon postal property for met: other than official purposes. (i) The registration must be con- (k) Vehicular and pedestrian traffic. (1) ducted by government agencies or non- Drivers of all vehicles in or on property profit civic leagues or organizations shall be in possession of a current and that operate for the promotion of so- valid state or territory issued driver’s cial welfare but do not participate or license and vehicle registration, and intervene in any political campaign on the vehicle shall display all current

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and valid tags and licenses required by (n) Conduct with regard to meetings of the jurisdiction in which it is reg- the Board of Governors. (1) Without the istered. permission of the chairman no person (2) Drivers who have had their privi- may participate in, film, televise, or lege or license to drive suspended or re- broadcast any portion of any meeting voked by any state or territory shall of the Board or any subdivision or com- not drive any vehicle in or on property mittee of the Board. Any person may during such period of suspension or electronically record or photograph a revocation. meeting, as long as that action does (3) Drivers of all vehicles in or on not tend to impede or disturb the mem- property shall drive in a careful and bers of the Board in the performance of safe manner at all times and shall com- their duties, or members of the public ply with the signals and directions of while attempting to attend or observe security force personnel, other author- a meeting. ized individuals, and all posted traffic (2) Disorderly conduct, or conduct signs. which creates loud or unusual noise, (4) The blocking of entrances, drive- obstructs the ordinary use of en- ways, walks, loading platforms, or fire trances, foyers, corridors, offices, hydrants in or on property is prohib- meeting rooms, elevators, stairways, or ited. parking lots, or otherwise tends to im- (5) Parking without authority, park- pede or disturb the members of the ing in unauthorized locations or in lo- Board in the performance of their du- cations reserved for other persons, or ties, or members of the public while at- continuously in excess of 18 hours tempting to attend or observe a meet- without permission, or contrary to the ing of the Board or of any subdivision, direction of posted signs is prohibited. or committee of the Board, is prohib- This section may be supplemented by ited. the postmaster or installation head (3) Any person who violates para- from time to time by the issuance and graph (n) (1) or (2) of this section may, posting of specific traffic directives as in addition to being subject to the pen- may be required. When so issued and alties prescribed in paragraph (p) of posted such directives shall have the this section, be removed from and same force and effect as if made a part barred from reentering postal property hereof. during the meeting with respect to (l) Weapons and explosives. No person which the violation occurred. while on postal property may carry (4) A copy of the rules of this section firearms, other dangerous or deadly governing conduct on postal property, weapons, or explosives, either openly including the rules of this paragraph or concealed, or store the same on appropriately highlighted, shall be postal property, except for official pur- posted in prominent locations at the poses. public entrances to postal property and (m) Nondiscrimination. There must be outside the meeting room at any meet- no discrimination by segregation or ing of the Board of Governors or of any otherwise against any person or per- subdivision or committee of the Board. sons because of race, color, religion, (o) Depositing literature. Depositing or national origin, sex, age (persons 40 posting handbills, flyers, pamphlets, years of age or older are protected), re- signs, poster, placards, or other lit- prisal (discrimination against a person erature, except official postal and for having filed or for having partici- other Governmental notices and an- pated in the processing of an EEO nouncements, on the grounds, walks, complaint—29 CFR 1613.26l–262), or driveways, parking and maneuvering physical or mental handicap, in fur- areas, exteriors of buildings and other nishing, or by refusing to furnish to structures, or on the floors, walls, such person or persons the use of any stairs, racks, counters, desks, writing facility of a public nature, including tables, window-ledges, or furnishings in all services, privileges, accommoda- interior public areas on postal prem- tions, and activities provided on postal ises, is prohibited. This prohibition property. does not apply to:

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(1) Posting notices on bulletin boards wise enforce regulations in this sec- as authorized in § 243.2(a) of this chap- tion. ter; [37 FR 24346, Nov. 16, 1972, as amended at 38 (2) Interior space assigned to tenants FR 27824, Oct. 9, 1973; 41 FR 23955, June 14, for their exclusive use; 1976; 42 FR 17443, Apr. 1, 1977; 43 FR 38825, (3) Posting of notices by U.S. Govern- Aug. 31, 1978; 46 FR 898, Jan. 5, 1981. Redesig- ment-related organizations such as the nated and amended at 46 FR 34330, July 1, Inaugural Committee as defined in 36 1981; 47 FR 32113, July 26, 1982; 53 FR 29460, Aug. 5, 1988; 54 FR 20527, May 12, 1989; 57 FR U.S.C. 721. 36903, Aug. 17, 1993; 57 FR 38443, Aug. 25, 1992; (p) Penalties and other law. (1) Alleged 63 FR 34600, June 25, 1998] violations of these rules and regulations are heard, and the penalties pre- PART 233—INSPECTION SERVICE scribed herein are imposed, either in a AUTHORITY Federal district court or by a Federal magistrate in accordance with applica- Sec. ble court rules. Questions regarding 233.1 Arrest and investigative powers of such rules should be directed to the re- Postal Inspectors. gional counsel for the region involved. 233.2 Circulars and rewards. (2) Whoever shall be found guilty of 233.3 Mail covers. violating the rules and regulations in 233.4 Withdrawal of mail privileges. this section while on property under 233.5 Requesting financial records from a financial institution. the charge and control of the Postal 233.6 Test purchases under 39 U.S.C. 3005(e). Service is subject to fine of not more 233.7 Forfeiture authority and procedures. than $50 or imprisonment of not more 233.8 Expedited forfeiture proceedings for than 30 days, or both. Nothing con- property seized for administrative for- tained in these rules and regulations feiture involving controlled substances shall be construed to abrogate any in personal use quantities. other Federal laws or regulations of 233.9 Expedited release of conveyances being forfeited in a judicial forfeiture any State and local laws and regula- proceeding for a drug-related offense. tions applicable to any area in which 233.10 Notice provisions. the property is situated. 233.11 Mail reasonably suspected of being (q) Enforcement. (1) Members of the dangerous to persons or property. U.S. Postal Service security force shall 233.12 Civil penalties. exercise the powers of special police- AUTHORITY: 39 U.S.C. 101, 102, 202, 204, 401, men provided by 40 U.S.C. 318 and shall 402, 403, 404, 406, 410, 411, 1003, 3005(e)(1); 12 be responsible for enforcing the regula- U.S.C. 3401–3422; 18 U.S.C. 981, 1956, 1957, 2254, tions in this section in a manner that 3061; 21 U.S.C. 881; Omnibus Budget Rec- will protect Postal Service property. onciliation Act of 1996, sec. 662 (Pub. L. No. 104–208). (2) Local postmasters and installation heads may, pursuant to 40 U.S.C. § 233.1 Arrest and investigative powers 318b and with the approval of the chief of Postal Inspectors. postal inspector or his designee, enter (a) Authorization. Postal Inspectors into agreements with State and local are authorized to perform the following enforcement agencies to insure that functions in connection with their offi- these rules and regulations are en- cial duties: forced in a manner that will protect (1) Serve warrants and subpoenas Postal Service property. issued under the authority of the (3) Postal Inspectors, Office of In- United States; spector General Criminal Investiga- (2) Make arrests without warrant for tors, and other persons designated by offenses against the United States the Chief Postal Inspector may like- committed in their presence;

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(3) Make arrests without warrant for and destroy circulars immediately felonies cognizable under the laws of when notified of their cancellation or the United States if they have reason- when the circular is not listed in the able grounds to believe that the person periodic Postal Bulletin notices of cur- to be arrested has committed or is rent wanted circulars. committing such a felony; (b) Rewards. (1) Rewards will be paid (4) Carry firearms; and in the amounts and under the condi- (5) Make seizures of property as pro- tions stated in Poster 296, Notice of Re- vided by law. ward, for the arrest and conviction of (b) Limitations. The powers granted persons for the following postal of- by paragraph (a) of this section shall be fenses: exercised only— (i) Robbery or attempted robbery. (1) In the enforcement of laws regard- (ii) Mailing bombs, explosives, poi- ing property in the custody of the son, or controlled substances. Postal Service, property of the Postal (iii) Post office burglary. Service, the use of the mails, and other (iv) Stealing or unlawful possession postal offenses; and of mail or money or property of the (2) To the extent authorized by the United States under the custody or Attorney General pursuant to agree- control of the Postal Service, including ment between the Attorney General property of the Postal Service. and the Postal Service, in the enforce- (v) Destroying, obstructing or retard- ment of other laws of the United ing the passage of mail. States, if the Attorney General deter- (vi) Altering, counterfeiting, forging, mines that the violation of such laws unlawful uttering or passing of postal will have a detrimental effect upon the money orders; or the unlawful use, operations of the Postal Service. counterfeiting or forgery of postage (c) Administrative subpoenas may be stamps or other postage; or the use, served by delivering a copy to a person sale or possession with intent to use or or by mailing a copy to his or her last sell, any forged or counterfeited post- known address. For the purposes of age stamp or other postage. this provision, delivery of a copy in- (vii) Assault on postal employee. cludes handing it to the party or leav- (viii) Murder or manslaughter of a ing it at the party’s office or residence postal employee. with a person of suitable age and dis- (ix) Mailing or receiving through the cretion employed or residing therein. mail any visual depiction involving the Service by mail is complete upon mail- use of a minor engaging in sexually ex- ing. plicit conduct. (d) In conducting any investigation, (x) Mailing or causing to be mailed Postal Inspectors are authorized to ac- any money which has been obtained il- cept, maintain custody of, and deliver legally. mail. (2) The postmaster or a designated employee should personally present re- [36 FR 4762, Mar. 12, 1971, as amended at 38 ward notices to representatives of FR 19124, July 18, 1973. Redesignated at 46 FR firms transporting mail, security or de- 34330, July 1, 1981; 52 FR 12901, Apr. 20, 1987; 56 FR 55823, Oct. 30, 1991; 60 FR 5581, Jan. 30, tective units of firms, police officers, 1995; 67 FR 16024, Apr. 4, 2002] sheriffs and their deputies, if practicable, and encourage their coopera- § 233.2 Circulars and rewards. tion in protecting mail and Postal (a) Wanted circulars. The Inspection Service property. (See 273.14 of the Ad- Service issues wanted circulars to as- ministrative Support Manual). sist in locating and arresting fugitive NOTE: The text of Poster 296, referred to in postal offenders. Post these circulars in paragraph (b)(1) of this section, reads as fol- the most conspicuous place in the post lows: office lobby and in other prominent The United States Postal Service offers a places. Post near the Notice of Reward reward up to the amounts shown for information and services leading to the arrest and sign. Telephone or telegraph imme- conviction of any person for the following of- diately to the postal inspector in fenses: charge any information on the possible Murder or Manslaughter, $100,000. The un- location of the person wanted. Remove lawful killing of any officer or employee of

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the Postal Service while engaged in or on ac- trolled substances, hazardous materials, ille- count of the performance of their official du- gal drugs, or the proceeds from the sale of il- ties. legal drugs. Assault on Postal Employees, $50,000. Forc- ibly assaulting any officer or employee of RELATED OFFENSES the Postal Service while engaged in or on account of the performance of their official du- The United States Postal Service ties. also offers rewards as stated above for Bombs or Explosives, $100,000. Mailing or information and services leading to the causing to be mailed any bombs or explo- arrest and conviction of any person: (1) sives which may kill or harm another, or in- For being an accessory to any of the jure the mails or other property, or the plac- above crimes; (2) for receiving or having of any bomb or explosive in a postal fa- ing unlawful possession of any mail, cility, vehicle, depository or receptacle established, approved or designated by the money or property secured through the Postmaster General for the receipt of mail. above crimes; and (3) for conspiracy to Postage or Meter Tampering, $50,000. The commit any of the above crimes. unlawful use, reuse, or forgery of postage stamps, postage meter stamps, permit im- GENERAL PROVISIONS prints or other postage; or the use, sale or possession with intent to use or sell, any 1. The Postal Inspection Service in- used, forged or counterfeited postage stamps vestigates the above described crimes. or other postage. Information concerning the violations, Robbery, $50,000. Robbery or attempted requests for applications for rewards, robbery of any custodian of any mail, or and written claims for rewards should money or other property of the United be furnished to the nearest Postal In- States under the control and jurisdiction of spector. The written claim for reward the United States Postal Service. Burglary of Post Office, $10,000. Breaking payment must be submitted within six into, or attempting to break into, a post of- months from the date of conviction of fice, station, branch, building used wholly or the offender, or the date of formally partly as a post office, or any building or deferred prosecution or the date of the area in a building where the business of the offender’s death, if killed in commit- Postal Service is conducted, with intent to ting a crime or resisting lawful arrest commit a larceny or other depredation for one of the above offenses. therein. Money Laundering, $10,000. Mailing or 2. The amount of any reward will be causing to be mailed any money which has based on the significance of services been illegally obtained. rendered, character of the offender, Offenses Involving Postal Money Orders, risks and hazards involved, time spent, $10,000. Theft or possession of stolen money and expenses incurred. Amounts of re- orders or any Postal Service equipment used wards shown above are the maximum to imprint money orders; or altering, coun- amounts which will be paid. terfeiting, forging, unlawful uttering, or 3. The term ‘‘custodian’’ as used passing of postal money orders. Theft, Possession, Destruction, or Obstruc- herein includes any person having law- tion of Mail, $10,000. Theft or attempted ful charge, control, or custody of any theft of any mail, or the contents thereof, or mail matter, or any money or other the theft of money or any other property of property of the United States under the United States under the custody and the control and jurisdiction of the control of the United States Postal Service United States Postal Service. from any custodian, postal vehicle, railroad 4. The Postal Service reserves the depot, airport, or other transfer point, post right to reject a claim for reward office or station or receptacle or depository established, approved, or designated by the where there has been collusion, crimi- Postmaster General for the receipt of mail; nal involvement, or improper methods or destroying, obstructing, or retarding the have been used to effect an arrest or to passage of mail, or any carrier or conveyance secure a conviction. It has the right to carrying the mail. allow only one reward when several Child Pornography, $50,000. The mailing or persons were convicted of the same of- receiving through the mail of any visual defense, or one person was convicted of piction involving the use of a minor engag- several of the above offenses. ing in sexually explicit conduct. Poison, Controlled Dangerous Substances, 5. Other rewards not specifically re- Hazardous Materials, Illegal Drugs, or Cash ferred to in this notice may be offered Proceeds from Illegal Drugs, $50,000. Mailing upon the approval of the Chief Postal or causing to be mailed any poison, con- Inspection (39 U.S.C. 404 (a)(8).

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(c) The Chief Postal Inspector or his data appearing on the outside cover of delegate is authorized to pay a reward any sealed or unsealed class of mail to any person who provides informa- matter, or by which a record is made of tion leading to the detection of persons the contents of any unsealed class of or firms who obtain, or seek to obtain, mail matter as allowed by law, to ob- funds, property, or services from the tain information in order to: Postal Service based upon false or (i) Protect national security, fraudulent activities, statements or (ii) Locate a fugitive, claims. The decision as to whether a (iii) Obtain evidence of commission reward shall be paid and the amount or attempted commission of a crime, thereof shall be solely within the dis- (iv) Obtain evidence of a violation or cretion of the Chief Postal Inspector or attempted violation of a postal statute, his delegate and the submission of in- or formation or a claim for a reward shall (v) Assist in the identification of not establish a contractual right to re- property, proceeds or assets forfeitable ceive any reward. The reward shall not under law. exceed one-half of the amount collected by the Postal Service as a result (2) For the purposes of § 233.3 record is of civil or criminal proceedings to re- a transcription, photograph, photocopy cover losses or penalties as a result of or any other facsimile of the image of false or fraudulent claims or state- the outside cover, envelope, wrapper, ments submitted to the Postal Service. or contents of any class of mail. Postal employees assigned to the Post- (3) Sealed mail is mail on which appro- al Inspection Service or the Law De- priate postage is paid, and which under partment are not eligible to receive a postal laws and regulations is included reward under this section for informa- within a class of mail maintained by tion obtained while so employed. The the Postal Service for the transmission Chief Inspector may establish such proof mail sealed against inspection, in- cedures and forms as may be desirable cluding First-Class Mail, Express Mail, to give effect to this section including international letter mail, and procedures to protect the identity of mailgram messages. persons claiming rewards under this (4) Unsealed mail is mail on which ap- section. propriate postage for sealed mail has not been paid and which under postal [36 FR 4673, Mar. 12, 1971, as amended at 42 laws or regulations is not included FR 43836, Aug. 31, 1977. Redesignated at 46 FR within a class of mail maintained by 34330, July 1, 1981, and amended at 47 FR the Postal Service for the transmission 26832, June 22, 1982; 47 FR 46498, Oct. 19, 1982; 49 FR 15191, Apr. 18, 1984; 54 FR 37795, Sept. of mail sealed against inspection. Un- 13, 1989; 55 FR 32251, Aug. 8, 1990; 59 FR 5326, sealed mail includes second-, third-, Feb. 4, 1994; 60 FR 54305, Oct. 23, 1995; 63 FR and fourth-class mail, and inter- 52160, Sept. 30, 1998] national parcel post mail. (5) Fugitive is any person who has fled § 233.3 Mail covers. from the United States or any State, (a) Policy. The U.S. Postal Service the District of Columbia, territory or maintains rigid control and supervision possession of the United States, to with respect to the use of mail covers avoid prosecution for a crime, to avoid as an investigative technique for law punishment for a crime, or to avoid enforcement or the protection of na- giving testimony in a criminal pro- tional security. ceeding. (b) Scope. These regulations con- (6) Crime, for the purposes of this sec- stitute the sole authority and proce- tion, is any commission of an act or dure for initiating a mail cover, and for the attempted commission of an act processing, using and disclosing infor- that is punishable by law by imprison- mation obtained from mail covers. ment for a term exceeding one year. (c) Definitions. For purpose of these (7) Postal statute refers to a statute regulations, the following terms are describing criminal activity, regardless hereby defined. of the term of imprisonment, for which (1) Mail cover is the process by which the Postal Service has investigative a nonconsensual record is made of any authority, or which is directed against

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the Postal Service, its operations, pro- (1) When a written request is received grams, or revenues. from a postal inspector that states rea- (8) Law enforcement agency is any au- son to believe a mail cover will produce thority of the Federal Government or evidence relating to the violation of a any authority of a State or local gov- postal statute. ernment, one of whose functions is to: (2) When a written request is received (i) Investigate the commission or at- from any law enforcement agency in tempted commission of acts consti- which the requesting authority speci- tuting a crime, or fies the reasonable grounds to dem- (ii) Protect the national security. onstrate the mail cover is necessary to: (9) Protection of the national security (i) Protect the national security, means to protect the United States (ii) Locate a fugitive, from any of the following actual or po- (iii) Obtain information regarding tential threats to its security by a for- the commission or attempted commis- eign power or its agents: sion of a crime, or (iv) Assist in the identification of (i) An attack or other grave, hostile property, proceeds or assets forfeitable act; because of a violation of criminal law. (ii) Sabotage, or international ter- (3) When time is of the essence, the rorism; or Chief Postal Inspector, or designee, (iii) Clandestine intelligence activi- may act upon an oral request to be ties, including commercial espionage. confirmed by the requesting authority (10) Emergency situation refers to cir- in writing within three calendar days. cumstances which require the imme- Information may be released by the diate release of information to prevent Chief Postal Inspector or designee, the loss of evidence or in which there is prior to receipt of the written request, a potential for immediate physical only when the releasing official is sat- harm to persons or property. isfied that an emergency situation ex- (d) Authorizations—Chief Postal In- ists. spector. (1) The Chief Postal Inspector (f)(1) Exceptions. A postal inspector, is the principal officer of the Postal or a postal employee acting at the di- Service in the administration of all rection of a postal inspector, may matters governing mail covers. The record the information appearing on Chief Postal Inspector may delegate the envelope or outer wrapping, of mail any or all authority in this regard to without obtaining a mail cover order, not more than two designees at Inspec- only under the circumstances in para- tion Service Headquarters. graph (f)(2) of this section. (2) Except for national security mail (2) The mail must be: covers, the Chief Postal Inspector may (i) Undelivered mail found abandoned also delegate any or all authority to or in the possession of a person reason- the Manager, Inspector Service Oper- ably believed to have stolen or embez- ations Support Group, and, for emer- zled such mail, gency situations, to Inspectors in (ii) Damaged or rifled, undelivered Charge. The Manager, Inspection Serv- mail, or ice Operations Support Group, may del- (iii) An immediate threat to persons egate this authority to no more than or property. two designees at each Operations Sup- (g) Limitations. (1) No person in the port Group. Postal Service except those employed (3) All such delegations of authority for that purpose in dead-mail offices, shall be issued through official, written may open, or inspect the contents of, directives. Except for delegations at or permit the opening or inspection of Inspection Service Headquarters, such sealed mail without a federal search delegations shall only apply to the geo- warrant, even though it may contain graphic areas served by the Manager, criminal or otherwise nonmailable Inspection Service Operation Support matter, or furnish evidence of the com- Group, or designee. mission of a crime, or the violation of (e) The Chief Postal Inspector, or his a postal statute. designee, may order mail covers under (2) No employee of the Postal Service the following circumstances: shall open or inspect the contents of

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any unsealed mail, except for the pur- cy requesting the cover or one designee pose of determining: at the agency’s headquarters level. The (i) Payment of proper postage, or head of the agency shall notify the (ii) Mailability. Chief Postal Inspector in writing of (3) No mail cover shall include mat- such designation. ter mailed between the mail cover sub- (h) Records. (1) All requests for mail ject and the subject’s known attorney. covers, with records of action ordered (4) No officer or employee of the thereon, and all reports issued pursu- Postal Service other than the Chief ant thereto, shall be deemed within the Postal Inspector, Manager, Inspection custody of the Chief Postal Inspector. Service Operations Support Group, and However, the physical storage of this their designees, are authorized to order data shall be at the discretion of the mail covers. Under no circumstances Chief Postal Inspector. may a postmaster or postal employee (2) If the Chief Postal Inspector, or furnish information as defined in his designee, determines a mail cover § 233.3(c)(1) to any person, except as au- was improperly ordered, all data ac- thorized by a mail cover order issued quired while the cover was in force by the Chief Postal Inspector or des- shall be destroyed, and the requesting ignee, or as directed by a postal inspec- authority notified of the discontinu- tor under the circumstances described ance of the mail cover and the reasons in § 233.3(f). therefor. (5) Except for mail covers ordered (3) Any data concerning mail covers upon fugitives or subjects engaged, or shall be made available to any mail suspected to be engaged, in any activ- cover subject in any legal proceeding ity against the national security, no through appropriate discovery proce- mail cover order shall remain in effect dures. for more than 30 days, unless adequate justification is provided by the request- (4) The retention period for files and ing authority. At the expiration of the records pertaining to mail covers shall mail cover order period, or prior there- be 8 years. to, the requesting authority may be (i) Reporting to requesting authority. granted additional 30-day periods under Once a mail cover has been duly or- the same conditions and procedures ap- dered, authorization may be delegated plicable to the original request. The re- to any employee in the Postal Inspec- questing authority must provide a tion Service to transmit mail cover restatement of the investigative benefit ports directly to the requesting author- of the mail cover and anticipated bene- ity. fits to be derived from its extension. (j) Review. (1) The Chief Postal In- (6) No mail cover shall remain in spector, or his designee at Inspection force longer than 120 continuous days Service Headquarters shall periodically unless personally approved for further review mail cover orders issued by the extension by the Chief Postal Inspector Manager, Inspection Service Oper- or designees at National Headquarters. ations Support Group or their des- (7) Except for fugitive cases, no mail ignees to ensure compliance with these cover shall remain in force when an in- regulations and procedures. formation has been filed or the subject (2) The Chief Postal Inspector shall has been indicted for the matter for select and appoint a designee to con- which the mail cover is requested. If duct a periodic review of national secu- the subject is under investigation for rity mail cover orders. further criminal violations, or a mail (3) The Chief Postal Inspector’s de- cover is required to assist in the identi- termination in all matters concerning fication of property, proceeds or assets mail covers shall be final and conclu- forfeitable because of a violation of sive and not subject to further admin- criminal law, a new mail cover order istrative review. must be requested consistent with (k) Military postal system. Section these regulations. 233.3 does not apply to the military (8) Any national security mail cover postal system overseas or to persons request must be approved personally by performing military postal duties over- the head of the law enforcement agen- seas. Information about regulations

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prescribed by the Department of De- must be in writing and served by per- fense for the military postal system sonal service upon the addressee or by overseas may be obtained from the De- Certified Mail (Return Receipt Re- partment of Defense. quested) and by First Class Mail. (3) Enforcement. Notice of any order [58 FR 36599, July 8, 1993, as amended at 61 FR 42557, Aug. 16, 1996] issued pursuant to 39 U.S.C. 3003, 3004, and any necessary implementing in- § 233.4 Withdrawal of mail privileges. structions, are published in the Postal (a) False representation and lottery Bulletin. orders—(1) Issuance. Pursuant to 39 [45 FR 1613, Jan. 8, 1980. Redesignated at 46 U.S.C. 3005, the Judicial Officer of the FR 34330, July 1, 1981, and amended at 53 FR Postal Service, acting upon a satisfac- 1780, Jan. 22, 1988] tory evidentiary basis, may issue a mail-stop order against anyone seeking § 233.5 Requesting financial records mailed remittance of money or prop- from a financial institution. erty by means of a false-representation (a) Definitions. The terms used in this or lottery scheme. Such orders provide section have the same meaning as for return of mail and refund of postal similar terms used in the Right to Fi- money orders to remitters. nancial Privacy Act of 1978, Title XI of (2) Enforcement. Notice of these or- Pub. L. 95–630. Act means the Right to ders, including any necessary instruc- Financial Privacy Act of 1978. tions on enforcement responsibilities (b) Purpose. The purpose of these reg- and procedures, is published in the ulations is: (1) To authorize the Inspec- Postal Bulletin. Generally, an order tion Service Department of the U.S. against a domestic enterprise is en- Postal Service to request financial forced only by the post office des- records from a financial institution ignated in the order. All personnel pursuant to the formal written request processing mail for dispatch abroad as- procedure authorized by section 1108 of sist in enforcing orders against foreign the Act and (2) to set forth the condi- enterprises by forwarding mail ad- tions under which such request may be dressed to such enterprises to des- made. ignated post offices. (c) Authorization. The Inspection (b) Fictitious name or address and not Service Department is authorized to residents of the place of address orders. request financial records of any cus- (1) Issuance. Pursuant to 39 U.S.C. 3003, tomer from a financial institution pur- 3004, when there is satisfactory evi- suant to a formal written request dence that mail is addressed to a ficti- under the Act only if: tious name, title, or address used for (1) No administrative summons or any unlawful business, and no one has subpoena authority reasonably appears established a right to have the mail de- to be available to the Inspection Serv- livered to him, or that mail is ad- ice Department to obtain financial dressed to places not the residence or records for the purpose for which the regular business address of the person records are sought; for whom they are intended to enable (2) There is reason to believe that the the person to escape identification, the records sought are relevant to a legiti- Judicial Officer may, pursuant to Part mate law enforcement inquiry and will 964, order that the mail be returned to further that inquiry; the sender. (3) The request is issued by a super- (2) Notice. (i) The Chief Postal Inspec- visory official of a rank designated by tor or his delegate must give notice to the Chief Postal Inspector. Officials so the addressee of mail withheld from de- designated shall not delegate this au- livery pursuant to 39 U.S.C. 3003, 3004 thority to others; that such action has been taken and (4) The request adheres to the re- advise him that he may: quirements set forth in paragraph (d) (A) Obtain such mail upon presenting of this section; and proof of his identity and right to re- (5) The notice requirements set forth ceive such mail, or in section 1108(4) of the Act, or the re- (B) Petition the Judicial Officer for quirements pertaining to the delay of the return of such mail. (ii) The notice notice in section 1109 of the Act, are

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satisfied, except in situations (e.g., sec- vestigate possible violations of postal tion 1113(g)) where no notice is re- laws. quired. (2) Test Purchase Request. A written (d) Written request. (1) The formal re- document requesting the sale of an ar- quest must be in the form of a letter or ticle or service pursuant to 39 U.S.C. memorandum to an appropriate official 3005(e) and containing the following in- of the financial institution and must formation: contain: (i) The name and address of the per- (i) The signature of the issuing offi- son, firm, or corporation to whom the cial and the official’s name, title, busi- request is directed; ness address, and business phone num- (ii) The name, title, signature, office ber; mailing address, and office telephone (ii) The identity of the customer or number of the person making the re- customers to whom the records per- quest; tain; (iii) A description of the article or (iii) A reasonable description of the service requested which is sufficient to records sought; and enable the person to whom the request (iv) Any additional information is made to identify the article or serv- which may be appropriate—e.g., the ice being sought; date when the opportunity for the cus- (iv) A statement of the nature of the tomer to challenge the formal written conduct under investigation; request expires, the date when the In- (v) A statement that the article or spection Service Department expects service must be tendered at the time to present a certificate of compliance and place stated in the purchase re- with the applicable provisions of the quest, unless the person making the re- Act, the name and title of the indi- quest and the person to whom it is vidual (if known) to whom disclosure is made agree otherwise in writing; to be made. (vi) A verbatim statement of 39 (2) In cases where customer notice is U.S.C. 3005, 3007; and delayed by court order, a copy of the (vii) A statement that failure to pro- court order must be attached to the vide the requested article or service formal written request. may be considered in a proceeding (e) Certification. Before obtaining the under 39 U.S.C. 3007 to determine requested records following a formal whether probable cause exists to be- written request, a supervisory official lieve that 39 U.S.C. 3005 is being vio- authorized to issue a request must cer- lated. tify in writing to the financial institu- (c) Service of Test Purchase Request. (1) tion that the Inspection Service De- The original of the Test Purchase Re- partment has complied with the appli- quest must be delivered to the person, cable provisions of the Act. firm, or corporation to whom the re- [44 FR 39161, July 5, 1979. Redesignated at 46 quest is made or to his or its represent- FR 34330, July 1, 1981] ative. It must be accompanied by a check or money order in the amount § 233.6 Test purchases under 39 U.S.C. for which the article or service is of- 3005(e). fered for sale, made payable to the per- (a) Scope. This section, which imple- son, firm or corporation making the ments 39 U.S.C. 3005(e), supplements offer. any postal regulations or instructions (2) The person serving the Test Pur- regarding test purchases or test purchase Request must make and sign a chase procedures. It is limited to test record, stating the date and place of purchases conducted according to 39 service and the name of the person U.S.C. 3005(e). served. The person making the request (b) Definitions—(1) Test purchase. The must retain a copy of the Test Pur- acquisition of any article or service, chase Request, the record of service, for which money or property are and the money order receipt or a pho- sought through the mails, from the tocopy of the issued check or the can- person or representative offering the celled check. Alternatively, the re- article or service. The purpose is to in- quest may be made by certified mail.

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(d) Authorizations. The Chief Postal shals Service, except property held for Inspector is the principal officer of the evidentiary purposes; retained for offi- Postal Service for the administration cial use upon forfeiture; subject to eq- of all matters governing test purchases uitable transfer to federal, state or under this section. The Chief Inspector local law enforcement agencies; or sub- may delegate any or all authority in ject to civil administrative forfeiture. this regard to any or all postal inspec- (e) Appraisal. The Postal Inspection tors. Service must promptly obtain or com- [49 FR 7230, Feb. 28, 1984; 49 FR 8250, Mar. 6, plete an appraisal of all seized prop- 1984] erty. The appraisal value is the fair market value of the property, which is § 233.7 Forfeiture authority and proce- the highest price, in terms of money, dures. which a property will bring in a com- (a) Designation of officials having for- petitive and open market. feiture authority. The Chief Postal In- (f) Quick-release. Property subject to spector is authorized to perform all du- administrative forfeiture may, prior to ties and responsibilities necessary on forfeiture, be released by the Postal In- behalf of the Postal Service to enforce spection Service to the owner of the 18 U.S.C. 981, 2254, and 21 U.S.C. 881, to property having an immediate right to delegate all or any part of this author- possession of the property when the ity to Deputy Chief Inspectors, Inspec- Postal Inspection Service concludes tors in Charge, and Inspectors of the that release of the property is in the Postal Inspection Service, and to issue best interest of justice. An agreement such instructions as may be necessary to hold harmless the United States, the to carry out this authority. Postal Inspection Service, and all other (b) Administrative forfeiture authority. involved entities should be obtained The Chief Postal Inspector is author- from the owner. A decision for quick ized to conduct administrative forfeit- release of the property should be made ures under the statutes identified in paragraph (a) of this section, following, within five days of the seizure. where applicable, the procedures pro- (g) Judicial forfeiture. If the appraised vided by the customs laws of the value of property seized exceeds United States (19 U.S.C. 1600 et seq.), $500,000, with the exception of: (1) Mon- and to pay valid liens and mortgages etary instruments within the meaning against property that has been so for- of 31 U.S.C. 5312(a)(3), or (2) any con- feited. veyance which was used to import, ex- (c) Inventory. An inventory of all port, transport, or store any controlled property seized for forfeiture under the substance or if a claim and satisfactory statutes identified in paragraph (a) of bond have been received for property this section shall be prepared and appraised at $500,000 or less, or for any maintained by the Postal Inspection monetary instruments within the Service. The inventory should occur meaning of 31 U.S.C. 5312(a)(3) or any within seven days of the seizure. The conveyance which was used to import, inventory must, at a minimum, iden- export, transport, or store any con- tify all property seized, state the exact trolled substance the Postal Inspection location of the property at the time of Service must transmit the claim and its seizure, and describe in detail the bond to the U.S. Attorney for the judi- condition of the property. A written re- cial district in which the seizure was ceipt containing such information and made and request that the U.S. Attor- identifying the Postal Inspector who ney promptly institute a judicial for- conducted the seizure must be provided feiture proceeding against the prop- to the party from whom the property erty. The Postal Inspection Service was seized, or the party’s agent or rep- must provide the U.S. Attorney a com- resentative, at the time of the seizure plete written description of the prop- or as soon thereafter as is practicable. erty, a statement of the facts and cir- (d) Custody. Custody of all property cumstances leading to the seizure of seized for forfeiture under the statutes the property, including all facts and identified in paragraph (a) of this sec- documentation leading to the conclu- tion is maintained by the U.S. Mar- sion that the seized property is subject

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to forfeiture, and such additional infor- documents are not satisfactory, the mation as the U.S. Attorney may re- Postal Inspection Service must notify quire for the purpose of instituting a the party making the claim and may judicial forfeiture action. allow a reasonable time for correction. (h) Notice of seizure for property having If correction is not made within the a value of $500,000 or less, or for monetary time allowed for that purpose, the ad- instruments or for conveyances which ministrative forfeiture must proceed as were used to transport or store any con- though the claim and bond had not trolled substance; advertisement; declara- been tendered. tion of forfeiture. (1) The Postal Inspec- (4) Notice of administrative for- tion Service must cause written notice feiture proceedings containing the in- of the seizure of all property subject to formation required by subsection (h)(1) civil administrative forfeiture to be must be published once each week for sent to each known party that may at least three successive weeks in a have a possessory or ownership interest newspaper of general circulation in the in the seized property. The notice must judicial district in which the property describe the property seized; state the was seized. If a claim and satisfactory date, place, and cause for seizure; and bond is not filed within the time al- inform the party of the intent of the lowed, the Postal Inspection Service Postal Inspection Service to forfeit the may declare the property forfeited. property. In addition, the notice must (i) Disposition of forfeited property. (1) state that any person desiring a judi- Whenever property is forfeited admin- cial determination of forfeiture must istratively, the Postal Inspection Serv- file a claim and bond (see paragraph 2 ice may: of this subsection) with a designated (i) Retain the property for official official of the Postal Inspection Serv- use; ice, within twenty days from the date of the first publication of the notice of (ii) Transfer ownership of the prop- seizure (see paragraph (4) of this sub- erty to any federal, state or local law section), or of the date of the letter of enforcement agency that participated personal notice required by this para- in the investigation leading to the for- graph, whichever is later. Any claim feiture; submitted pursuant to this paragraph (iii) Sell any property which is not is invalid unless accompanied by a required to be destroyed by law and bond meeting the requirements of para- which is not harmful to the public; graph (2), or a completed PS Form 1518, (iv) Destroy the property; or Petition to Proceed in Forma Pauperis. (v) Dispose of the property as other- (2) A bond in the amount of $5,000 or wise permitted by law. ten percent of the value of the claimed (2) If the laws of a state in which an property, whichever is lower, but in no article of forfeited property is located event less than $250, must accompany prohibit the sale or possession of such any claim submitted pursuant to para- property or if the Postal Service and graph (1). The bond may be in the form the Marshals Service are of the opinion of a cashier’s check, certified check, or that it would be more advantageous to money order made payable to the sell the forfeited property in another United States of America, or satisfac- district, the property may be moved to tory sureties. If a claimant is finan- and sold in such other district. cially unable to post the bond because (3) If, after an administrative for- of indigency, such a person may re- feiture of property is completed, it ap- quest a waiver of the bond by comple- pears that the proceeds of sale will not tion of PS Form 1518, Petition to Proceed be sufficient to pay the costs of sale or in Forma Pauperis. the proceeds will be insignificant in re- (3) Upon receipt of the claim and lation to the expenses involved in the bond, the Postal Inspection Service forfeiture, then the Postal Service or must, upon determining that the docu- the Marshals Service may order de- ments are in proper form and the sure- struction or other disposition of the ties satisfactory, transmit the docu- property including alteration of the ments to the appropriate U.S. Attorney property into an article that is not pro- as provided in subsection (g). If the hibited.

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(j) Remission or mitigation of adminis- after July 1, 1997. These regulations trative, civil, and criminal forfeitures—(1) will apply to decisions on requests for Authority, purpose, and scope—(i) Pur- reconsideration of a denial of a peti- pose. This section sets forth the proce- tion under paragraphs (j)(3)(x) and dures for Postal Inspection Service of- (3)(xi) of this section only if the initial ficials to follow when considering re- decision on the petition was made mission or mitigation of administra- under the provisions of this part effective forfeitures under the jurisdiction tive July 1, 1997. of the Postal Service. The purpose of (E) This section governs any petition these regulations is to provide a basis for remission or mitigation filed with for ameliorating the effects of for- the Chief Postal Inspector and super- feiture through the partial or total re- sedes any Postal Service regulation mission of forfeiture for individuals governing petitions for remission or who have an interest in the forfeited mitigation to the extent such regula- property but who did not participate tion is inconsistent with this section. in, or have knowledge of, the conduct (2) Definitions. As used in this part: that resulted in the property being subject to forfeiture and, where required, (i) The term administrative forfeiture took all reasonable steps under the cir- means the process by which property cumstances to ensure that such prop- may be forfeited by an investigative erty would not be used, acquired, or agency rather than through judicial disposed of contrary to law. Addition- proceedings. ally, these regulations provide for par- (ii) The term appraised value means tial or total mitigation of the for- the estimated market value of an asset feiture and imposition of alternative at the time and place of seizure if such conditions in appropriate cir- or similar property was freely offered cumstances. for sale between a willing seller and a (ii) Authority to grant remission and willing buyer. mitigation. (A) Remission and mitiga- (iii) The term Attorney General means tion functions in administrative for- the Attorney General of the United feitures are performed by the agency States or his or her designee. seizing the property. Within the Postal (iv) The term beneficial owner means Inspection Service, authority to grant a person with actual use of, as well as remission and mitigation is delegated an interest in, the property subject to to the Independent Counsel, Office of forfeiture. the Chief Inspector, Washington, DC. (v) The term general creditor means (B) Remission and mitigation func- one whose claim or debt is not secured tions in judicial cases are within the by a specific right to obtain satisfac- jurisdiction of the Criminal Division of tion against the particular property the Department of Justice. Within the subject to forfeiture. Criminal Division, authority to grant (vi) The term judgment creditor means remission and mitigation has been del- one who has obtained a judgment egated to the Chief, Asset Forfeiture against the debtor but has not yet re- and Money Laundering Section. ceived full satisfaction of the judg- (C) The powers and responsibilities ment. within these regulations may be redelegated to attorneys or managers work- (vii) The term judicial forfeiture ing under the supervision of the des- means either a civil or criminal pro- ignated officials. ceeding in a United States District (D) The time periods and internal re- Court that may result in a final judg- quirements established in these regula- ment and order of forfeiture. tions are designed to guide the orderly (viii) The term lienholder means a administration of the remission and creditor whose claim or debt is secured mitigation process and are not in- by a specific right to obtain satisfac- tended to create rights or entitlements tion against the particular property in favor of individuals seeking remis- subject to forfeiture. A lien creditor sion or mitigation. These regulations qualifies as a lienholder if the lien: will apply to all decisions on petitions (A) Was established by operation of for remission or mitigation made on or law or contract;

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(B) Was created as a result of an ex- (xiii) The term petitioner means the change of money, goods, or services; person applying for remission, mitiga- and tion, restoration of the proceeds of (C) Is perfected against the specific sale, or for the appraised value of for- property forfeited for which remission feited property under these regula- or mitigation is sought (e.g., a real es- tions. A petitioner may be an owner of tate mortgage, a mechanic’s lien). forfeited property as defined in para- (ix) The term net equity means the graph (j)(2)(x) of this section; a amount of a lienholder’s monetary in- lienholder as defined in paragraph terest in property subject to forfeiture. (j)(2)(viii) of this section; or a victim as Net equity shall be computed by deter- defined in paragraph (j)(2)(xxi) of this mining the amount of unpaid principal section subject to the limitations of and unpaid interest at the time of sei- paragraph (j)(8) of this section. zure, and by adding to that sum unpaid (xiv) The term Postal Service Fund interest calculated from the date of means the United States Postal Fund seizure through the last full month established under 39 U.S.C. 2003. prior to the date of the decision on the (xv) The term property means real or petition. Where a rate of interest is set personal property of any kind capable forth in a security agreement, the rate of being owned or possessed. of interest to be used in this computa- (xvi) The term record means a series tion will be the annual percentage rate of arrests for related crimes, unless the so specified in the security agreement arrestee was acquitted or the charges that is the basis of the lienholder’s in- were dismissed for lack of evidence; a terest. In this computation, however, conviction for a related crime or com- there shall be no allowances for attor- pletion of sentence within ten years of neys’ fees, accelerated or enhanced in- the acquisition of the property subject terest charges, amounts set by con- to forfeiture; or two convictions for a tract as damages, unearned extended warranty fees, insurance, service con- related crime at any time in the past. tract charges incurred after the date of (xvii) The term related crime as used seizure, allowances for dealer’s reserve, in paragraphs (j)(2)(xvi) and (6)(v) of or any other similar charges. this section means any crime similar (x) The term owner means the person in nature to that which gives rise to in whom primary title is vested or the seizure of property for forfeiture. whose interest is manifested by the ac- For example, where property is seized tual and beneficial use of the property, for a violation of the federal laws deal- even though the title is vested in an- ing with drugs, a related crime would other. A victim of an offense as defined be any offense involving a violation of in paragraph (j) (2)(xxi) of this section the federal laws relating to drugs or may also be an owner if he or she has the laws of any state or political sub- a present legally cognizable ownership division thereof relating to drugs. interest in the property forfeited. A (xviii) The term related offense as nominal owner of property will not be used in paragraph (j)(8) of this section treated as its true owner if he or she is means: not its beneficial owner. (A) Any predicate offense charged in (xi) The term person means an indi- a Federal Racketeer Influenced and vidual, partnership, corporation, joint Corrupt Organizations Act (RICO) business enterprise, estate, or other count for which forfeiture was ordered; legal entity capable of owning prop- or erty. (B) An offense committed as part of (xii) The term petition means a peti- the same scheme or design, or pursuant tion for remission or mitigation of for- to the same conspiracy, as was in- feiture under these regulations. This volved in the offense for which the for- definition includes a petition for res- feiture was ordered. toration of the proceeds of sale of for- (xix) The term Ruling Official means feited property and a petition for the any official to whom decision making value of forfeited property placed into authority has been delegated pursuant official use. to paragraph (j)(1)(ii) of this section.

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(xx) The term seizing agency means (2) The name of the seizing agency, the federal agency that seized the prop- the asset identifier number, and the erty or adopted the seizure of another date and place of seizure; agency for federal forfeiture. (3) A complete description of the (xxi) The term victim means a person property including make, model, and who has incurred a pecuniary loss as a serial numbers, if any; and direct result of the commission of the (4) A description of the petitioner’s offense underlying a forfeiture. A drug interest in the property as owner, user is not considered a victim of a lienholder, or otherwise, supported by drug trafficking offense under this defi- original or certified bills of sale, con- nition. A victim does not include one tracts, deeds, mortgages, or other doc- who acquires a right to sue the perpe- umentary evidence. trator of the criminal offense for any (B) Any factual recitation or docu- loss by assignment, subrogation, inher- mentation of any type in a petition itance, or otherwise from the actual must be supported by a sworn affidavit. victim, unless that person has acquired (iv) Releases. In addition to the con- an actual ownership interest in the for- tents of the petition for remission or feited property. mitigation set forth in paragraph (xxii) The term violator means the (j)(3)(iii) of this section, upon request, person whose use or acquisition of the the petitioner shall also furnish the property in violation of the law sub- agency with an instrument executed by jected such property to seizure for for- the titled or registered owner and any feiture. other known claimant of an interest in the property releasing interest in such (3) Petitions in administrative forfeiture property. cases—(i) Notice of seizure. The notice of (v) Filing petition with agency. (A) A seizure and intent to forfeit the prop- petition for remission or mitigation of erty shall advise any persons who may an administrative forfeiture by the have a present ownership interest in Postal Inspection Service shall be sent the property to submit their petitions to the Chief Postal Inspector, United for remission or mitigation within States Postal Service, 475 L’Enfant thirty (30) days of the date they receive Plaza SW, Washington, DC 20260–2100. the notice in order to facilitate proc- (B) The petition shall be sworn to by essing. Petitions shall be considered the petitioner or by the petitioner’s at- any time after notice until the for- torney upon information and belief, feited property is placed into official supported by the client’s sworn notice use, sold, or otherwise disposed of ac- of representation pursuant to 28 U.S.C. cording to law, except in cases involv- 1746, as set out in paragraph (j)(9)(vii) ing petitions to restore the proceeds of this section. from the sale of forfeited property. A (vi) Agency investigation. Upon receipt notice of seizure shall include the title of a petition, the Postal Inspection of the seizing agency, the Ruling Offi- Service shall investigate the merits of cial, the mailing and street address of the petition and prepare a written re- the official to whom petitions should port containing the results of that in- be sent, and an asset identifier number. vestigation. This report shall be sub- (ii) Persons who may file. A petition mitted to the Ruling Official for review for remission or mitigation must be and consideration. filed by a petitioner as defined in para- (vii) Ruling. Upon receipt of the peti- graph (j)(2)(xiii) of this section or as tion and the agency report, the Ruling prescribed in paragraphs (j)(9) (vii) and Official shall review the petition and (viii) of this section. the report, and shall rule on the merits (iii) Contents of petition. (A) All peti- of the petition. No hearing shall be tions must include the following infor- held. mation in clear and concise terms: (viii) Petitions granted. If the Ruling (1) The name, address, and social se- Official grants a remission or mitiga- curity or other taxpayer identification tion of the forfeiture, a copy of the de- number of the person claiming an in- cision shall be sent by certified mail to terest in the seized property who is the petitioner, or, if represented by an seeking remission or mitigation; attorney, to the petitioner’s attorney.

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A copy of the decision shall also be (1) Did not know of the seizure prior sent to the U.S. Marshals Service or to the entry of a declaration of for- other property custodian. The written feiture; and decision shall include the terms and (2) Could not reasonably have known conditions, if any, upon which the re- of the seizure prior to the entry of a mission or mitigation is granted and declaration of forfeiture. the procedures the petitioner must fol- (B) Such a petition shall be sub- low to obtain release of the property or mitted pursuant to paragraphs (j)(3)(ii) the monetary interest therein. through (v) of this section within nine- (ix) Petitions denied. If the Ruling Of- ty (90) days from the date the property ficial denies a petition, a copy of the is sold or otherwise disposed of. decision shall be sent by certified mail (4) Petitions in judicial forfeiture cases—(i) Procedure for filing petition. If to the petitioner, or, if represented by the forfeiture proceedings are judicial, an attorney, to the petitioner’s attor- a petition for remission or mitigation ney of record. A copy of the decision of a judicial forfeiture shall be ad- shall also be sent to the U.S. Marshals dressed to the Attorney General; shall Service or other property custodian. be sworn to by the petitioner or by the The written decision shall specify the petitioner’s attorney upon information reason that the petition was denied. and belief, supported by the client’s The decision shall advise the petitioner sworn notice of representation pursu- that a request for reconsideration of ant to 28 U.S.C. 1746; and shall be sub- the denial of the petition may be submitted to the United States Attorney mitted to the Ruling Official in accord- for the district in which the judicial ance with paragraph (j)(3)(x) of this forfeiture proceedings are brought. A section. petitioner also shall submit a copy of (x) Request for reconsideration. (A) A the petition to the Chief Postal Inspec- request for reconsideration of the de- tor if the Postal Inspection Service was nial of the petition shall be considered the seizing agency. if: (ii) Ruling. Department of Justice (1) It is postmarked or received by regulations on petitions for remission the office of the Ruling Official within or mitigation in judicial forfeiture ten (10) days from the receipt of the no- cases are stated in 29 CFR 9.4. tice of the denial of the petition by the (5) Criteria governing administrative re- petitioner; and mission and mitigation—(i) Remission. (A) (2) The request is based on informa- The Ruling Official shall not grant re- tion or evidence not previously consid- mission of a forfeiture unless the peti- ered that is material to the basis for tioner establishes that: the denial or presents a basis clearly (1) The petitioner has a valid, good demonstrating that the denial was er- faith and legally cognizable interest in roneous. the seized property as owner or lienholder as defined in these regula- (B) In no event shall a request for re- tions; and consideration be decided by the same (2) The petitioner is innocent within Ruling Official who ruled on the origi- the meaning of the innocent owner pro- nal petition. visions of the applicable civil forfeiture (C) Only one request for reconsider- statute, is a bona fide purchaser for ation of a denial of a petition shall be value without cause to believe that the considered. property was subject to forfeiture at (xi) Restoration of proceeds from sale. the time of the purchase, or is one who (A) A petition for restoration of the held a legally cognizable interest in proceeds from the sale of forfeited the seized property at the time of the property, or for the appraised value of violation underlying the forfeiture su- forfeited property when the forfeited perior to that of the defendant within property has been retained by or deliv- the meaning of the applicable criminal ered to a government agency for offi- forfeiture statute, and is thereby enti- cial use, may be submitted by an owner tled to recover his or her interest in or lienholder in cases in which the peti- the forfeited property by statute. (If tioner: the applicable civil forfeiture statute

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contains no innocent owner defense, tice and will not diminish the deter- the innocent owner provisions applica- rent effect of the law. Extenuating cir- ble to 21 U.S.C. 881(a)(4) shall apply.) cumstances justifying such a finding Unless otherwise provided by statute, include those circumstances that re- in the case of petitioners who acquired duce the responsibility of the peti- their interest in the property after the tioner for knowledge of the illegal ac- time of the violation underlying the tivity, knowledge of the criminal forfeiture, the question of whether the record of a user of the property, or fail- petitioner had knowledge of the viola- ure to take reasonable steps to prevent tion shall be determined as of the point the illegal use or acquisition by an- in time when the interest in the prop- other for some reason, such as a rea- erty was acquired. sonable fear of reprisal; or (B) The knowledge and responsibil- (2) Where the minimum standards for ities of petitioner’s representative, remission have been satisfied but the agent, or employee in paragraph overall circumstances are such that, in (j)(5)(i)(A)(2) of this section are im- the opinion of the Ruling Official, computed to the petitioner where the rep- plete relief is not warranted. resentative, agent, or employee was (B) The Ruling Official may in his or acting in the course of his or her em- her discretion grant mitigation to a ployment and in furtherance of the pe- party involved in the commission of titioner’s business. the offense underlying the forfeiture (C) The petitioner has the burden of where certain mitigating factors exist, establishing the basis for granting a including, but not limited to: The lack petition for remission or mitigation of of a prior record or evidence of similar forfeited property, a restoration of pro- criminal conduct; if the violation does ceeds of sale or appraised value of for- not include drug distribution, manufac- feited property, or a reconsideration of turing, or importation, the fact that a denial of such a petition. Failure to the violator has taken steps, such as provide information or documents and drug treatment, to prevent further to submit to interviews, as requested, criminal conduct; the fact that the vio- may result in a denial of the petition. lation was minimal and was not part of (D) The Ruling Official shall presume a larger criminal scheme; the fact that a valid forfeiture and shall not consider the violator has cooperated with fed- whether the evidence is sufficient to eral, state, or local investigations re- support the forfeiture. lating to the criminal conduct under- (E) Willful, materially false state- lying the forfeiture; or the fact that ments or information, made or fur- complete forfeiture of an asset is not nished by the petitioner in support of a necessary to achieve the legitimate petition for remission or mitigation of purposes of forfeiture. forfeited property, the restoration of (C) Mitigation may take the form of proceeds or appraised value of forfeited a monetary condition or the imposition property, or the reconsideration of a of other conditions relating to the con- denial of any such petition, shall be tinued use of the property, and the re- grounds for denial of such petition and turn of the property, in addition to the possible prosecution for the filing of imposition of any other costs that false statements. would be chargeable as a condition to (ii) Mitigation. (A) The Ruling Official remission. This monetary condition is may grant mitigation to a party not considered as an item of cost payable involved in the commission of the of- by the petitioner, and shall be depos- fense underlying forfeiture: ited into the Postal Service Fund as an (1) Where the petitioner has not met amount realized from forfeiture in ac- the minimum conditions for remission, cordance with the applicable statute. If but the Ruling Official finds that some the petitioner fails to accept the Rul- relief should be granted to avoid ex- ing Official’s mitigation decision or treme hardship and that return of the any of its conditions, or fails to pay property combined with imposition of the monetary amount within twenty monetary and/or other conditions of (20) days of the receipt of the decision, mitigation in lieu of a complete for- the property shall be sold, and the feiture will promote the interest of jus- monetary amount imposed and other

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costs chargeable as a condition to miti- (1) The judgment was duly recorded gation shall be subtracted from the before the seizure of the property for proceeds of the sale before transmit- forfeiture; ting the remainder to the petitioner. (2) Under applicable state or other (6) Special rules for specific local law, the judgment constitutes a petitioners—(i) General creditors. A gen- valid lien on the property that at- eral creditor may not be granted remis- tached to it before the seizure of the sion or mitigation of forfeiture unless property for forfeiture; and he or she otherwise qualifies as a peti- (3) The petitioner had no knowledge tioner under these regulations. of the commission of any act or acts (ii) Rival claimants. If the beneficial giving rise to the forfeiture at the time owner of the forfeited property and the the judgment became a lien on the for- owner of a security interest in the feited property. same property each file a petition, and (B) A judgment creditor will not be if both petitions are found to be meri- recognized as a lienholder if the prop- torious, the claim of the beneficial erty in question is not property of owner shall take precedence. which the judgment debtor is entitled (iii) Voluntary bailments. A petitioner to claim ownership under applicable who allows another to use his or her state or other local law (e.g., stolen property without cost, and who is not property). A judgment creditor is entitled under these regulations to no more in the business of lending money se- than the amount of the judgment, ex- cured by property or of leasing or rent- clusive of any interest, costs, or other ing property for profit, shall be granted fees including attorney’s fees associ- remission or mitigation of forfeiture in ated with the action that led to the accordance with the provisions of para- judgment or its collection. graph (j)(5) of this section. (C) A judgment creditor’s lien must (iv) Lessors. A person engaged in the be registered in the district where the business of leasing or renting real or property is located if the judgment was personal property on a long-term basis obtained outside the district. with the right to sublease shall not be (7) Terms and conditions of remission entitled to remission or mitigation of a and mitigation—(i) Owners. (A) An own- forfeiture of such property unless the er’s interest in property that has been lessor can demonstrate compliance forfeited is represented by the property with all the requirements of paragraph itself or by a monetary interest equiva- (j)(5) of this section. lent to that interest at the time of sei- (v) Straw owners. A petition by any zure. Whether the property or a mone- person who has acquired a property in- tary equivalent will be remitted to an terest recognizable under these regula- owner shall be determined at the dis- tions and who knew or had reason to cretion of the Ruling Official. believe that the interest was conveyed (B) If a civil judicial forfeiture action by the previous owner for the purpose against the property is pending, release of circumventing seizure, forfeiture, or of the property must await an appro- these regulations, shall be denied. A priate court order. petition by a person who purchases or (C) Where the government sells or owns property for another who has a disposes of the property prior to the record for related crimes as defined in grant of the remission, the owner shall paragraph (j)(2)(xvii) of this section, or receive the proceeds of that sale, less a petition by a lienholder who knows any costs incurred by the government or has reason to believe that the pur- in the sale. The Ruling Official, at his chaser or owner of record is not the or her discretion, may waive the deduc- real purchaser or owner, shall be de- tion of costs and expenses incident to nied unless both the purchaser of the forfeiture. record and the real purchaser or owner (D) Where the owner does not comply meet the requirements of paragraph with the conditions imposed upon re- (j)(5) of this section. lease of the property by the Ruling Of- (vi) Judgment creditors. (A) A judg- ficial, the property shall be sold. Fol- ment creditor will be recognized as a lowing the sale, the proceeds shall be lienholder if: used to pay all costs of the forfeiture

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and disposition of the property, in ad- discretion, may waive costs and ex- dition to any monetary conditions im- penses incident to the forfeiture. posed. The remaining balance shall be (iii) If the lienholder does not notify paid to the owner. the Ruling Official of the selection of (ii) Lienholders. (A) When the for- one of the two options set forth above feited property is to be retained for of- in paragraph (j)(7)(ii)(B) of this section ficial use or transferred to a state or within twenty (20) days of the receipt local law enforcement agency or for- of such notification, the Ruling Official eign government pursuant to law, and shall direct the U.S. Marshal or other remission or mitigation has been property custodian to sell the property granted to a lienholder, the recipient of and pay the lienholder an amount up to the property shall assure that: the net equity, less the costs and ex- (1) In the case of remission, the lien penses incurred incident to the for- is satisfied as determined through the feiture and sale, and any monetary petition process; or conditions imposed. In the event a (2) In the case of mitigation, an lienholder subsequently receives a pay- amount equal to the net equity, less ment of any kind on the debt owed for any monetary conditions imposed, is which he or she has already received paid to the lienholder prior to the repayment as a result of the granting of lease of the property to the recipient remission or mitigation, the lienholder agency or foreign government. shall reimburse the Postal Service (B) When the forfeited property is not Fund to the extent of the payment re- retained for official use or transferred ceived. to another agency or foreign country (iv) Where the lienholder does not pursuant to law, the lienholder shall be comply with the conditions imposed notified by the Ruling Official of the upon the release of the property, the right to select either of the following property shall be sold after forfeiture. alternatives: From the proceeds of the sale, all costs (1) Return of property. The lienholder incident to the forfeiture and sale shall may obtain possession of the property first be deducted, and the balance up to after paying the United States, the net equity, less any monetary con- through the Ruling Official, the costs and expenses incident to the forfeiture, ditions, shall be paid to the lienholder. the amount, if any, by which the ap- (8) Provisions applicable to victims. praised value of the property exceeds The provisions of this section apply the lienholder’s net equity in the prop- to victims of an offense underlying the erty, and any amount specified in the forfeiture of property, or of a related Ruling Official’s decision as a condi- offense, who do not have a present own- tion to remit the property. The Ruling ership interest in the forfeited property Official, at his or her discretion, may (or, in the case of multiple victims of waive costs and expenses incident to an offense, who do not have a present the forfeiture. The Ruling Official shall ownership interest in the forfeited forward a copy of the decision, a property that is clearly superior to memorandum of disposition, and the that of other petitioner victims). The original releases to the U.S. Marshals provisions of this section apply only Service or other property custodian with respect to property forfeited pur- who shall thereafter release the prop- suant to statutes that explicitly au- erty to the lienholder; or thorize restoration or remission of for- (2) Sale of Property and Payment to feited property to victims. Victims who Lienholder—Subject to the provisions of have a superior present legally cog- paragraph (j)(9)(i) of this section, upon nizable ownership interest in forfeited sale of the property, the lienholder property may file petitions as other may receive the payment of a mone- owners, subject to the regulations set tary amount up to the sum of the forth in paragraph (j)(7)(i) of this sec- lienholder’s net equity, less the ex- tion. The claims of such owner victims, penses and costs incident to the for- like those of any other owners, shall feiture and sale of the property, and have priority over the claims of any any other monetary conditions im- non-owner victims whose claims are posed. The Ruling Official, at his or her recognized pursuant to this section.

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(i) Qualifications to file. A victim, as (iv) Denial of petition. In the exercise defined in paragraph (j)(2)(xxi) of this of his or her discretion, the Ruling Of- section, of an offense that was the un- ficial may decline to grant remission derlying basis for the criminal, civil, or where: administrative forfeiture of specific (A) There is substantial difficulty in property, or a victim of a related of- calculating the pecuniary loss incurred fense, may be granted remission of the by the victim or victims; forfeiture of that property, if in addi- (B) The amount of the remission, if tion to complying with the other appli- granted, would be small compared with cable provisions of this section, the the amount of expenses incurred by the victim satisfactorily demonstrates government in determining whether to that: grant remission; or (A) A pecuniary loss of a specific (C) The total number of victims is amount has been directly caused by the large and the monetary amount of the criminal offense, or related offense, remission so small as to make its that resulted in the forfeiture, or by a granting impractical. related offense, and that the loss is (v) Pro rata basis. In granting remis- supported by documentary evidence in- sion to multiple victims pursuant to cluding invoices and receipts; this section, the Ruling Official should (B) The pecuniary loss is the direct generally grant remission on a pro rata result of the illegal acts and is not the basis to recognized victims when peti- result of otherwise lawful acts which tions cannot be granted in full due to were committed in the course of a the limited value of the forfeited prop- criminal offense; erty. However, the Ruling Official may consider, among others, the following (C) The victim did not knowingly factors in establishing appropriate pri- contribute to, participate in, benefit orities in individual cases: from, or act in a willfully blind manner (A) The specificity and reliability of towards the commission of the offense, the evidence establishing a loss; or related offense, that was the under- (B) The fact that a particular victim lying basis of the forfeiture; is suffering an extreme financial hard- (D) The victim has not in fact been ship; compensated for the wrongful loss of (C) The fact that a particular victim the property by the perpetrator or oth- has cooperated with the government in ers; and the investigation related to the for- (E) The victim does not have re- feiture or to a related prosecution or course reasonably available to other civil action; and assets from which to obtain compensa- (D) In the case of petitions filed by tion for the wrongful loss of the prop- multiple victims of related offenses, erty. the fact that a particular victim is a (ii) Pecuniary loss. The amount of the victim of the offense underlying the pecuniary loss suffered by a victim for forfeiture. which remission may be granted is lim- (vi) Reimbursement. Any petitioner ited to the fair market value of the granted remission pursuant to this sec- property of which the petitioner was tion shall reimburse the Postal Service deprived as of the date of the occur- Fund for the amount received to the rence of the loss. No allowance shall be extent the individual later receives made for interest foregone or for col- compensation for the loss of the prop- lateral expenses incurred to recover erty from any other source. The peti- lost property or to seek other rec- tioner shall surrender the reimburse- ompense. ment upon payment from any sec- (iii) Torts. A tort associated with ille- ondary source. gal activity that formed the basis for (vii) Claims of financial institution reg- the forfeiture shall not be a basis for ulatory agencies. In cases involving remission, unless it constitutes the il- property forfeitable under 18 U.S.C. legal activity itself, nor shall remis- 981(a)(1)(C) or (a)(1)(D), the Ruling Offi- sion be granted for physical injuries to cial may decline to grant a petition a petitioner or for damage to a peti- filed by a petitioner in whole or in part tioner’s property. due to the lack of sufficient forfeitable

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funds to satisfy both the petition and sale of the property is presumed to be claims of the financial institution reg- the value of the property. Monetary re- ulatory agencies pursuant to 18 U.S.C. lief shall not be greater than the ap- 981 (e)(3) or (7). Generally, claims of fi- praised value of the property at the nancial regulatory agencies pursuant time of seizure and shall not exceed the to 18 U.S.C. 981(e)(3) or (7) shall take amount realized from the sale or other priority over claims of victims. disposition. The proceeds of the sale (9) Miscellaneous Provisions—(i) Pri- shall be distributed as follows: ority of payment. Except where other- (A) Payment of the government’s ex- wise provided in this section, costs in- penses incurred incident to the for- curred by the Postal Inspection Service feiture and sale, including court costs and other agencies participating in the and storage charges, if any; forfeiture that were incident to the for- (B) Payment to the petitioner of an feiture, sale, or other disposition of the amount up to his or her interest in the property shall be deducted from the property; amount available for remission or (C) Payment to the Postal Service mitigation. Such costs include, but are Fund of all other costs and expenses in- not limited to, court costs, storage cident to the forfeiture; costs, brokerage and other sales-re- (D) In the case of victims, payment of lated costs, the amount of any liens any amount up to the amount of his or and associated costs paid by the gov- her loss; and ernment on the property, costs in- (E) Payment of the balance remain- curred in paying the ordinary and nec- ing, if any, to the Postal Service Fund. essary expenses of a business seized for (iii) Trustees and other assistants. In forfeiture, awards for information as the exercise of his or her discretion, authorized by statute, expenses of the Ruling Official may use the serv- trustees or other assistants pursuant ices of a trustee, other government of- to paragraph (j)(9)(iii) of this section, ficial, or appointed contractors to no- investigative or prosecutive costs spe- tify potential petitioners, process peti- cially incurred incident to the par- tions, and make recommendations to ticular forfeiture, and costs incurred the Ruling Official on the distribution incident to the processing of the peti- of property to petitioners. The expense tion(s) for remission or mitigation. The for such assistance shall be paid out of remaining balance shall be available the forfeited funds. for remission or mitigation. The Rul- (iv) Other agencies of the United States. ing Official shall direct the distribu- Where another agency of the United tion of the remaining balance in the States is entitled to remission or miti- following order of priority, except that gation of forfeited assets because of an he or she may exercise discretion in de- interest that is recognizable under termining the priority between peti- these regulations, or is eligible for such tioners belonging to classes described transfer pursuant to 18 U.S.C. 981(e)(6), in paragraphs (j)(9)(iii) and (9)(iv) of such agency shall request the transfer this section in exceptional cir- in writing, in addition to complying cumstances: with the provisions of paragraphs (j)(3) (A) Owners; through (5) of this section. The deci- (B) Lienholders; sion to make such transfer shall be (C) Federal financial institution reg- made in writing by the Ruling Official. ulatory agencies (pursuant to para- (v) Financial institution regulatory graph (j)(9)(vi) of this section, not con- agencies. A Ruling Official may direct stituting owners or lienholders); and the transfer of property under 18 U.S.C. (D) Victims not constituting owners 981(e) to certain federal financial insti- or lienholders (pursuant to paragraph tution regulatory agencies or an entity (j)(8) of this section). acting in their behalf, upon receipt of a (ii) Sale or disposition of property prior written request, in lieu of ruling on a to ruling. If forfeited property has been petition for remission or mitigation. sold or otherwise disposed of prior to a (vi) Transfers to foreign governments. A ruling, the Ruling Official may grant Ruling Official may decline to grant relief in the form of a monetary remission to any petitioner other than amount. The amount realized by the an owner or lienholder so that forfeited

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assets may be transferred to a foreign is contained in the document or docu- government pursuant to 18 U.S.C. ments establishing the plan. Where 981(i)(1), 19 U.S.C. 1616a(c)(2), or 21 such a petition is filed, any amounts U.S.C. 881(e)(1)(E). granted as a remission must be trans- (vii) Filing by attorneys. (A) A petition ferred to the other petitioners, not the for remission or mitigation may be party filing the petition; although, in filed by a petitioner or by his or her at- his or her discretion, the Ruling Offi- torney or legal guardian. If an attorney cial may use the actual petitioner as files on behalf of the petitioner, the pe- an intermediary for transferring the tition must include a signed and sworn amounts authorized as a remission to statement by the client-petitioner the other petitioners. stating that: [52 FR 4497, Feb. 12, 1987; 52 FR 5765, Feb. 26, (1) The attorney has the authority to 1987, as amended at 54 FR 47520, Nov. 15, 1989; represent the petitioner in this pro- 56 FR 20361, May 3, 1991; 57 FR 32726, July 23, ceeding; 1992; 59 FR 31154, June 17, 1994; 59 FR 35852, (2) The petitioner has fully reviewed July 14, 1994; 60 FR 5581, Jan. 30, 1995; 60 FR the petition; and 8306, Feb. 14, 1995; 62 FR 31726, June 11, 1997] (3) The petition is truthful and accu- § 233.8 Expedited forfeiture pro- rate in every respect. ceedings for property seized for ad- (B) Verbal notification of representa- ministrative forfeiture involving tion is not acceptable. Responses and controlled substances in personal notification of rulings shall not be sent use quantities. to an attorney claiming to represent a (a) Definitions. As used in this sec- petitioner unless a written notice of tion, the following terms have the representation is filed. No extensions meanings specified: of time shall be granted due to delays (1) Appraised Value means the esti- in submission of the notice of represen- mated domestic price at the time of tation. seizure at which such or similar prop- (viii) Consolidated petitions. At the erty is freely offered for sale. discretion of the Ruling Official in in- (2) Controlled Substance has the mean- dividual cases, a petition may be filed ing given in 21 U.S.C. 802. by one petitioner on behalf of other pe- (3) Legal and Factual Basis of the Sei- titioners, provided the petitions are zure means a statement of the applica- based on similar underlying facts, and ble law under which the property is the petitioner who files the petition seized, and a written statement of the has written authority to do so on be- circumstances of the seizure suffi- half of the other petitioners. This au- ciently precise to enable an owner or thority must be either expressed in other interested party to identify the documents giving the petitioner the date, place, and use or acquisition authority to file petitions for remis- which makes the property subject to sion, or reasonably implied from docu- forfeiture. ments giving the petitioner express au- (4) Owner means one having a legal thority to file claims or lawsuits re- and possessory interest in the property lated to the course of conduct in ques- seized for forfeiture. Even though one tion on behalf of these other peti- may hold primary and direct title to tioners. An insurer or an administrator the property seized, such person may of an employee benefit plan, for exam- not have sufficient actual beneficial in- ple, which itself has standing to file a terest in the property to support a pe- petition as a ‘‘victim’’ within the tition as owner if the facts indicate meaning of paragraph (j)(2)(xxi) of this that another person had dominion and section, may also file a petition on be- control over the property. half of all its insured or plan bene- (5) Personal Use Quantities means pos- ficiaries for any claims they may have session of a controlled substance in cir- based on co-payments made to the per- cumstances where there is not other petrator of the offense underlying the evidence of an intent to distribute, or forfeiture or the perpetrator of a ‘‘re- to facilitate the manufacturing, lated offense’’ within the meaning of compounding, processing, delivering, paragraph (j)(2)(xviii) of this section, if importing, or exporting of any con- the authority to file claims or lawsuits trolled substance. Evidence of personal

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use quantities does not include (4) Any compound, mixture or prepa- sweepings or other evidence of posses- ration which contains any quantity of sion of quantities of a controlled sub- any of the substances referred to in stance for other than personal use. § 233.8(a)(5) (ii)(B)(1)–(3); (i) Such other evidence includes: (5) 1⁄10th gram of a mixture or sub- (A) Evidence, such as drug scales, stance described in § 233.8(a)(5)(ii) drug distribution paraphernalia, drug which contains cocaine base; records, drug packaging material, (6) 1⁄10 gram of a mixture or substance method of drug packaging, drug ‘‘cut- containing a detectable amount of ting’’ agents and other equipment, that phencyclidine (PCP); indicates an intent to process, package (7) 500 micrograms of a mixture or or distribute a controlled substance; substance containing a detectable (B) Information from reliable sources amount of lysergic acid diethylamide indicating possession of a controlled (LSD); substance with intent to distribute; (8) One ounce of a mixture of sub- (C) The arrest and/or conviction stance containing a detectable amount record of the person or persons in ac- of marihuana; tual or constructive possession of the (9) One gram of methamphetamine, controlled substance for offenses under its salts, isomers, and salts of its iso- Federal, State or local law that indi- mers, or one gram of a mixture or sub- cates an intent to distribute a con- stance containing a detectable amount trolled substance; of methamphetamine, its salts, iso- (D) Relationship of the controlled mers, or salts of its isomer. substance to large amounts of cash or (iii) The possession of a narcotic, a any amount of prerecorded government depressant, a stimulant, a hallucinogen funds; or cannabis-controlled substance will (E) Possession of the controlled sub- be considered in excess of personal use stance under circumstances that indi- quantities if the dosage unit amount cate the substance is a sample intended possessed provides the same or greater for distribution in anticipation of a equivalent efficacy as described in transaction involving large quantities, § 233.8(a)(5)(ii). or is part of a larger delivery; or (6) Property means property subject (F) Statements by the possessor, or to forfeiture under title 21, U.S.C., Sec- otherwise attributable to the pos- tions 881(a)(4), (6), and (7). sessor, including statements of con- (7) Statutory Rights or Defenses to the spirators, that indicate possession with Forfeiture means all legal and equitable intent to distribute. rights and remedies available to a (ii) Possession of a controlled sub- claimant of property seized for for- stance is presumed to be for personal feiture. use when there are no indicia of illicit (8) Sworn to as used in § 233.8(b)(4)(ii) drug trafficking or distribution such refers to the oath as provided by 28 as, but not limited to, the factors list- U.S.C. 1746. ed in § 233.8(a)(5)(i), and the amounts do (b) Petition for expedited release in an not exceed the following quantities: administrative forfeiture action. (1) (A) One gram of a mixture of sub- Where property is seized for adminis- stance containing a detectable amount trative forfeiture involving controlled of heroin; substances in personal use quantities, (B) One gram of a mixture or sub- the owner may petition the Postal In- stance containing a detectable amount spection Service for expedited release of: of the property. (1) Coca leaves, except coca leaves (2) The owner filing the petition for and extracts of coca leaves from which expedited release must establish the cocaine, ecgonine, and derivations of following: ecgonine or their salts have been re- (i) The owner has a valid, good faith moved; interest in the seized property as owner (2) Cocaine, its salts, optical and geo- or otherwise; metric isomers, and salts of isomers; (ii) The owner reasonably attempted (3) Ecgonine, its derivatives, their to ascertain the use of the property in salts, isomers, and salts of isomers; or a normal and customary manner; and

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(iii) The owner did not know or con- tion is made within 21 days, no further sent to the illegal use of the property, action need be taken under this sec- or in the event that the owner knew or tion. should have known of the illegal use, (2) If no such final administrative de- the owner did what reasonably could be termination is made within 21 days of expected to prevent the violation. the seizure, the following procedure ap- (3) In addition to those factors listed plies: in § 233.8(b)(2), if an owner can dem- (i) The Postal Inspection Service, onstrate that he has other statutory within 20 days after the receipt of the rights or defenses that would cause petition for expedited release, deter- him to prevail on the issue of for- mines whether the petition filed by the feiture, such factors must also be con- owner has established the factors listed sidered in ruling on the petition for ex- in § 233.8(b)(2); and pedited release. (ii) If the Postal Inspection Service (4) A petition for expedited release determines that those factors have must be: been established, it terminates the ad- (i) Filed in a timely manner to be ministrative proceedings and returns considered; in order to be filed in a the property to the owner except where timely manner, the petition must be it is evidence of a violation of law; or received by the Postal Inspection Serv- (iii) If the Postal Inspection Service ice within 20 days from the date of the determines that those factors have not first publication of the notice of sei- been established, it proceeds with the zure. administrative forfeiture. (ii) Executed and sworn to by the (d) Posting of substitute res. (1) Where owner and both the envelope and the property is seized for administrative request must be clearly marked ‘‘PE- forfeiture involving controlled sub- TITION FOR EXPEDITED RELEASE’’; stances in personal use quantities, the (iii) Filed in accordance with the no- owner may obtain release of the prop- tice of seizure; and erty by posting a substitute res with (iv) Addressed to the Chief Postal In- the Postal Service. The property will spector, Postal Inspection Service. be released to the owner upon the pay- (5) The petition must include the fol- ment of an amount equal to the ap- lowing: praised value of the property if it is not (i) A complete description of the evidence of a violation of law or has de- property, including identification num- sign or other characteristics that par- bers, if any, and the date and place of ticularly suit it for use in illegal ac- seizure; tivities. This payment must be in the (ii) The petitioner’s interest in the form of a traveler’s check, a money property, which must be supported by order, a cashier’s check or an irrev- title documentation, bills of sale, con- ocable letter of credit made payable to tracts, mortgages, or other satisfac- the Postal Service. A bond in the form tory documentary evidence; and of a cashier’s check will be considered (iii) A statement of the facts and cir- as paid once the check has been accept- cumstances, to be established by satis- ed for payment by the financial insti- factory proof, relied upon by the peti- tution which issued the check. tioner to justify expedited release of (2) If a substitute res is posted and the seized property. the property is administratively for- (c) Ruling on petition for expedited re- feited, the Postal Inspection Service lease in an administrative forfeiture ac- will forfeit the substitute res in lieu of tion involving personal use quantities of a the property. controlled substance. (1) Upon receipt of a petition for expedited release filed [54 FR 47520, Nov. 15, 1989] pursuant to § 233.8(b), the Postal In- spection Service must determine first § 233.9 Expedited release of convey- whether a final administrative deter- ances being forfeited in a judicial mination of the case, without regard to forfeiture proceeding for a drug-re- the provisions of this section, can be lated offense. made within 21 days of the seizure. If (a) Petition for expedited release of con- such a final administrative determina- veyance. Where a conveyance has been

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seized and is being forfeited in a judi- and Federal regulations including the cial proceeding for a drug-related of- procedures established for the filing of fense, the owner may petition the a petition for expedited release and for United States Attorney for an expe- the posting of a substitute res bond. dited release of the conveyance in ac- (b) Standard notice provision. The cordance with the regulations of the standard notice to the owner as re- Department of Justice (21 CFR part quired by 19 U.S.C. 1607 will be made at 1316). the earliest practicable opportunity (b) Petition filed in timely manner. A after determining ownership of the petition for expedited release must be seized property and must include the filed in a timely manner in order to be legal and factual basis of the seizure. considered by the United States Attor- ney. To be considered as filed in a [54 FR 47522, Nov. 15, 1989] timely manner, in accordance with 21 CFR part 1316, the petition must be re- § 233.11 Mail reasonably suspected of ceived by the appropriate United being dangerous to persons or property. States Attorney within 20 days from the date of the first publication of the (a) Screening of mail. When the Chief notice of the action and arrest of the Postal Inspector determines that there property, or within 30 days after filing is a credible threat that certain mail of the claim, whichever occurs later. may contain a bomb, explosives, or (c) Obtaining release of the property by other material that would endanger filing a substitute res bond. Where a con- life or property, including firearms veyance is being forfeited in a judicial which are not mailable under Section proceeding for a drug-related offense, C024 of the Domestic Mail Manual, the the owner may obtain release of the Chief Postal Inspector may, without a property by filing a substitute res bond search warrant or the sender’s or ad- with the Postal Inspection Service. The dressee’s consent, authorize the screen- conveyance will be released to the ing of such mail by any means capable owner upon the payment of a bond in of identifying explosives, nonmailable the amount of the appraised value of firearms, or other dangerous contents the conveyance if it is not evidence of in the mails. The screening must be a violation of law or has design or within the limits of this section and other characteristics that particularly without opening mail that is sealed suit it for use in illegal activities. This against inspection or revealing the bond must be in the form of a trav- contents of correspondence within mail eler’s check, a money order, a cashier’s that is sealed against inspection. The check or an irrevocable letter of credit screening is conducted according to made payable to the United States these requirements. Postal Service. A bond in the form of a (1) Screening of mail authorized by cashier’s check will be considered as paragraph (a) of this section must be paid once the check has been accepted limited to the least quantity of mail for payment by the financial institu- necessary to respond to the threat. tion which issued the check. (2) Such screening must be done in a (d) Forfeiture of the bond. If a sub- manner that does not avoidably delay stitute res bond is filed and the convey- the screened mail. ance is judicially forfeited, the court (3) The Chief Postal Inspector may will forfeit the bond in lieu of the prop- authorize screening of mail by postal erty. employees and by persons not em- [54 FR 47522, Nov. 15, 1989] ployed by the Postal Service under such instruction that require compli- § 233.10 Notice provisions. ance with this part and protect the se- (a) Special notice provision. At the curity of the mail. No information ob- time of seizure of property defined in tained from such screening may be dis- § 233.8(b) for violations involving the closed unless authorized by this part. possession of personal use quantities of (4) Mail of insufficient weight to pose a controlled substance, written notice a hazard to air or surface transpor- will be provided to the possessor of the tation, or to contain firearms which property regarding applicable statutes are not mailable under Section C024 of

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the Domestic Mail Manual, and inter- of a false representation, including the national transit mail must be excluded mailing of matter which is non- from such screening. mailable, or engaged in conducting a (5) After screening conducted under lottery, gift enterprise, or scheme for paragraph (a) of this section, mail that the distribution of money or of real or is reasonably suspected of posing an personal property, by lottery, chance, immediate and substantial danger to or drawing of any kind. life or limb, or an immediate and sub- (b) Enforcement. Pursuant to 39 U.S.C. stantial danger to property, may be 3012, any person: treated by postal employees as provided in paragraph (b) of this section. (1) Who, through the use of the mail, (6) After screening, mail sealed evades or attempts to evade the effect against inspection that presents doubts of an order issued under 39 U.S.C. about whether its contents are haz- 3005(a)(1) or 3005(a)(2); ardous, that cannot be resolved with- (2) Who fails to comply with an order out opening, must be reported to the issued under 39 U.S.C. 3005(a)(3); or Postal Inspection Service. Such mail (3) Who (other than a publisher de- must be disposed of under instructions scribed by 39 U.S.C. 3007(b)) has actual promptly furnished by the Inspection knowledge of any such order, is in priv- Service. ity with any person described by para- (b) Threatening pieces of mail. Mail, graph (b) (1) or (2) of this section, and sealed or unsealed, reasonably sus- engages in conduct to assist any such pected of posing an immediate danger person to evade, attempt to evade, or to life or limb or an immediate and fail to comply with such order, as the substantial danger to property may, case may be, through the use of the without a search warrant, be detained, opened, removed from postal custody, mail; and processed or treated, but only to Shall be liable to the United States for the extent necessary to determine and a civil penalty in an amount not to ex- eliminate the danger and only if a com- ceed $11,000 for each day that such per- plete written and sworn statement of son engages in conduct described by the detention, opening, removal, or this paragraph (b). A separate penalty treatment, and the circumstances that may be assessed under this paragraph prompted it, signed by the person pur- (b) with respect to the conduct de- porting to act under this section, is scribed by paragraphs (b) (1), (2), or (3) promptly forwarded to the Chief Postal of this section. Inspector. (c) Reports. Any person purporting to [61 FR 56450, Nov. 1, 1996] act under this section who does not report his or her action to the Chief PART 235—DEFENSE DEPARTMENT Postal Inspector under the require- LIAISON ments of this section, or whose action is determined after investigation not Sec. to have been authorized, is subject to 235.1 Postal Service to the Armed Forces. disciplinary action or criminal pros- 235.2 Civil preparedness. ecution or both. [61 FR 28060, June 4, 1996] § 235.1 Postal Service to the Armed Forces. § 233.12 Civil penalties. (a) Publication 38, Postal Agreement False representation and lottery or- with the Department of Defense, de- ders— fines the Postal Service’s responsibil- (a) Issuance. Pursuant to 39 U.S.C. ities for providing postal service to the 3005, the Judicial Officer of the Postal Armed Forces. Service, acting upon a satisfactory evi- (b) The Chief Inspector is responsible dentiary basis, may issue a mail return for military liaison. and/or a cease and desist order against (c) Postal inspectors provide liaison anyone engaged in conducting a between postmasters and military com- scheme or device for obtaining money manders, visit military installations as or property through the mail by means

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required, and make any necessary rec- (1) Carry out civil preparedness as- ommendations. signments, programs, etc., as directed by regional officials. (39 U.S.C. 401(2), 402, 403, 404, as enacted by Pub. L. 91–375, 84 Stat. 719) (2) Comply with, and cooperate in community civil preparedness plans [38 FR 26193, Sept. 9, 1973] (including exercise) for evacuation, take cover and other survival measures § 235.2 Civil preparedness. prescribed for local populations. (a) Mission. The prime objective of (3) Designate representatives for con- postal emergency preparedness plan- tinuing liaison with local civil pre- ning is to maintain or restore essential paredness organizations where such ac- postal service in a national emergency, tivity will not interfere with normal natural disaster, or disruptive domes- duties. tic crisis. (4) Endeavor to serve (at their own (b) Emergency Coordinator. The Chief option) as members on the staff of the Inspector is designated Emergency Co- local civil preparedness director, pro- ordinator for the Postal Service. As vided such service will not interfere Emergency Coordinator, he provides with their primary postal responsi- general direction and coordination of bility in an emergency. the following programs: (5) Authorize and encourage their (1) National Civil Preparedness and employees to participate voluntarily in Defense Mobilization; nonpostal pre-emergency training pro- (2) Natural Disaster Preparedness; grams and exercises in cooperation (3) Emergency Response to Disrup- with States and localities. tive Domestic Crisis. (39 U.S.C. 401(2), 402, 403, 404, as enacted by (c) Regional Emergency Coordinator. Pub. L. 91–375, 84 Stat. 719) The Chief Inspector may delegate authority to Regional Chief Postal In- [38 FR 26193, Sept. 9, 1973] spectors, or others, for the function of 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 PART 241—ESTABLISHMENT CLASSI- the National level. FICATION, AND (d) Postmaster General emergency line of succession. (1) Deputy Postmaster DISCONTINUANCE General; (2) Senior Assistant Post- master General, Administration; (3) Sec. Senior Assistant Postmaster General, 241.1 Post offices. Operations. 241.2 Stations and branches. (e) Headquarters and field lines of suc- 241.3 Discontinuance of post offices. 241.4 Expansion, relocation, and construc- cession. Each Headquarters organization of post offices. tional unit shall establish its own internal line of succession to provide for § 241.1 Post offices. continuity under emergency conditions. Each Regional Postmaster Gen- (a) Establishment. See § 113.1 of this eral, Regional Chief Inspector, Postal chapter. Data Center Director, Inspector in (b) Classification. As of July 1 each Charge, and postmaster at first-class year, post offices are classified by the post offices shall prepare a succession Postmaster General based on the al- list of officials who will act in his stead lowable postal revenue units for the in the event he is incapacitated or ab- second preceding fiscal year as follows: sent in an emergency. Orders of succes- (1) First Class. Post offices having 950 sion shall be shown by position titles, or more revenue units. except those of the Inspection Service (2) Second Class. Post offices having may be shown by names. 190 but less than 950 revenue units. (f) Field responsibilities. Postmasters (3) Third Class. Post offices having 36 and heads of other installations shall: but less 190 revenue units.

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(4) Fourth Class. Post offices having post office, and any proposal to dis- less than 36 revenue units. continue a post office without pro- (39 U.S.C. 401) viding a replacement facility. (2) Legal requirements. Under 39 U.S.C. [36 FR 4764, Mar. 12, 1971, as amended at 42 404(b), any decision to close or consoli- FR 59082, Nov. 15, 1977] date a post office must be based on cer- § 241.2 Stations and branches. tain criteria. These include the effect on the community served; the effect on (a) Description. (1) Stations are estab- employees of the post office; compli- lished within the corporate limits or ance with government policy estab- boundary, and branches are established lished by law that the Postal Service outside the corporate limits or boundary of the city, town, or village in must provide a maximum degree of ef- which the main post office is located. fective and regular postal services to Stations and branches may be des- rural areas, communities, and small ignated by number, letter or name. As towns where post offices are not self- a general rule, branches are named. sustaining; the economic savings to the (2) Stations and branches transact Postal Service; and any other factors registry and money order business, sell the Postal Service determines nec- postage supplies, and accept matter for essary. In addition, certain mandatory mailing. Delivery service, post office procedures apply as follows: boxes, and other services may be pro- (i) The public must be given 60 days’ vided when directed by the postmaster. notice of a proposed action to enable (3) Stations and branches, except the persons served by a post office to nonpersonnel rural stations and evaluate the proposal and provide com- branches, are designated as inde- ments. pendent when registered and other (ii) After public comments are re- mail is received or dispatched without ceived and taken into account, any passing through the main office. final determination to close or consoli- (b) Classification—(1) Classified. Oper- date a post office must be made in ated by postal employees in quarters writing and must include findings cov- provided by the Federal Government. ering all the required considerations. (2) Contract. Operated under contract (iii) The written determination must by persons who are not Federal Gov- be made available to persons served by ernment employees. Persons operating the post office at least 60 days before contract stations and branches are the discontinuance takes effect. independent contractors and neither (iv) Within the first 30 days after the the contractors nor any person em- written determination is made avail- ployed by them to assist in the conduct able, any person regularly served by of contract stations or branches shall the affected post office may appeal the be employees of the Federal Govern- decision to the Postal Rate Commis- ment for any purpose whatsoever. sion. (39 U.S.C. 401) (v) The Commission may only affirm [36 FR 4764, Mar. 12, 1971] the Postal Service determination or return the matter for further consider- § 241.3 Discontinuance of post offices. ation but may not modify the deter- (a) Introduction—(1) Coverage. This mination. section establishes the rules governing (vi) The Commission is required by 39 the Postal Service’s consideration of U.S.C. 404(b)(5) to make a determina- whether an existing post office should tion on the appeal no later than 120 be discontinued. The rules cover any days after receiving the appeal. proposal to replace a post office with a (vii) The following is a summary community post office, station or table of the notice and appeal periods branch, consolidation with another under the statute for these regulations.

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(3) Additional requirements. This sec- the ZIP Code of the facility providing tion also includes: replacement service to that address. In (i) Rules to ensure that the commu- some cases, the ZIP Code originally as- nity’s identity as a postal address is signed to the discontinued post office preserved. may be kept, if the responsible district (ii) Rules for consideration of a pro- manager, Customer Service and Sales, posed discontinuance and for its imple- submits a request with justification to mentation, if approved. These rules are Address Management, Postal Service designed to ensure that the reasons Headquarters, before the proposal to leading a district manager, Customer discontinue the post office is posted. Service and Sales, to propose the dis- (i) In a consolidation, the ZIP Code continuance of a particular post office for the replacement community post are fully articulated and disclosed at a office, station, or branch is either (A) stage that enables customer participa- the ZIP Code originally assigned to the tion to make a helpful contribution to- discontinued post office, or (B) the ZIP ward the final decision. Code of the replacement facility’s par- (b) Preservation of community address— ent post office, whichever provides the (1) Policy. The Postal Service permits most expeditious distribution and de- the use of a community’s separate ad- livery of mail addressed to the cus- dress to the extent practicable. tomers of the replacement facility. (2) ZIP Code assignment. The ZIP Code (ii) If the ZIP Code is changed and for each address formerly served from the parent post office covers several the discontinued post office should be ZIP Codes, the ZIP Code must be that

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of the delivery area within which the the postmaster (or the officer in facility is located. charge) of the post office considered for (3) Post office name in address. If all discontinuance, and with the post- the delivery addresses using the name master of any other post office affected of the post office to be discontinued are by the change. The manager should assigned the same ZIP Code, customers make sure that these officials submit may continue to use the discontinued written comments and suggestions as post office name in their addresses, in- part of the record when the proposal is stead of the new delivering post office reviewed. name. (4) Preparation of written proposal. The (4) Name of facility established by con- district manager, Customer Service solidation. If a post office to be discon- and Sales, must gather and preserve for tinued is consolidated with one or more the record all documentation used to other post offices by establishing in its assess the proposed change. If the man- place a community post office, classi- ager thinks the proposed action is war- fied or contract station, or branch affiliated with another post office in- ranted, he or she must prepare a docu- volved in the consolidation, the re- ment titled ‘‘Proposal to (Close) (Con- placement unit is given the same name solidate) the (Name) Post Office.’’ This of the discontinued post office. document must describe, analyze, and (5) List of discontinued post offices. justify in sufficient detail to Postal Publication 65, National Five-Digit ZIP Service management and affected cus- Code and Post Office Directory, lists tomers the proposed service change. all post offices discontinued after The written proposal must address March 14, 1977, for mailing address pur- each of the following matters in sepa- poses only if they are used in address- rate sections: es. The ZIP Codes listed for discon- (i) Responsiveness to community postal tinued offices are those assigned under needs. It is the policy of the Govern- this subsection. ment, as established by law, that the (c) Initial proposal—(1) In general. If a Postal Service will provide a maximum district manager, Customer Service degree of effective and regular postal and Sales, believes that the discontinu- services to rural areas, communities, ance of a post office within his or her and small towns where post offices are responsibility may be warranted, the not self-sustaining. The proposal manager: should (A) contrast the services avail- (i) Must use the standards and proce- able before and after the proposed dures in § 241.3 (c) and (d). change; (B) describe how the changes (ii) Must investigate the situation. respond to the postal needs of the af- (iii) May propose the post office be fected customers; and (C) highlight discontinued. particular aspects of customer service (2) Consolidation. The proposed action that might be less advantageous as may include a consolidation of post of- well as more advantageous. fices to substitute a community post (ii) Effect on community. The proposal office or a classified or contract station or branch for the discontinued must include an analysis of the effect post office if: the proposed discontinuance might (i) The communities served by two or have on the community served, and more post offices are being merged into discuss the application of the require- a single incorporated village, town, or ments in § 241.3(b). city; or (iii) Effect on employees. The written (ii) A replacement facility is nec- proposal must summarize the possible essary for regular and effective service effects of the change on the post- to the area served by the post office master, supervisors, and other employ- considered for discontinuance. ees of the post office considered for dis- (3) Views of postmasters. Whether the continuance. (The district manager, discontinuance under consideration in- Customer Service and Sales, must sug- volves a consolidation or not, the dis- gest measures to comply with per- trict manager, Customer Service and sonnel regulations related to post of- Sales, must discuss the matter with fice discontinuance and consolidation.)

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(iv) Savings. The proposal must in- notice of that final determination must clude an analysis of the economic sav- be posted in this post office. ings to the Postal Service from the (B) The final determination must proposed action, including the cost or contain instructions on how affected savings expected from each major fac- customers may appeal that decision to tor contributing to the overall esti- the Postal Rate Commission. Any such mate. appeal must be received by the Com- (v) Other factors. The proposal should mission within 30 days of the posting of include an analysis of other factors the final determination. that the district manager, Customer (d) Notice, public comment, and Service and Sales, determines are nec- record—(1) Posting proposal and comment essary for a complete evaluation of the notice. A copy of the written proposal proposed change, whether favorable or and a signed invitation for comments unfavorable. must be posted prominently in each affected post office. The invitation for (vi) Summary. The proposal must in- comments must: clude a summary that explains why the (i) Ask interested persons to provide proposed action is necessary, and as- written comments within 60 days, to a sesses how the factors supporting the stated address, offering specific opin- proposed change outweigh any negative ions and information, favorable or un- factors. In taking competing consider- favorable, on the potential effect of the ations into account, the need to pro- proposed change on postal services and vide regular and effective service is the community. paramount. (ii) State that copies of the proposal (vii) Notice. The proposal must in- with attached optional comment forms clude the following notice: ‘‘This Is A are available in the affected post of- Proposal. It Is Not A Final Determina- fices. tion To (Close) (Consolidate) This Post (iii) Provide a name and telephone Office.’’ number to call for information. (A) If a final determination is made (2) Proposal and comment notice. The to close or consolidate this post office, following is a sample format that may after public comments on this proposal be used for the proposal and comment are received and taken into account, a notice.

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(3) Other steps. In addition to pro- (i) If oral contacts develop views or viding notice and inviting comment, information not previously docu- the district manager, Customer Service mented, whether favorable or unfavor- and Sales, must take any other steps able to the proposal, the district man- necessary to ensure that the persons ager, Customer Service and Sales, served by the affected post office un- should encourage persons offering the derstand the nature and implications views or information to provide writ- of the proposed action (e.g., meeting ten comments to preserve them for the with community groups and following record. up on comments received that seem to (ii) As a factor in making his or her be based on incorrect assumptions or decision, the district manager, Cus- information). tomer Service and Sales, may not rely

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on communications received from any- to the extent possible how many com- one unless submitted in writing for the ments support each point listed. record. (2) Re-evaluation of proposal. After (4) Record. The district manager, Cus- completing the analysis, the district tomer Service and Sales, must keep as manager, Customer Service and Sales, part of the record for his or her consid- must review the proposal and re-evalu- eration and for review by the chief ate all the tentative conclusions pre- marketing officer/senior vice president viously made in light of additional cus- all the documentation gathered about tomer information and views in the the proposed change. record. (i) The record must include all infor- (i) Discontinuance not warranted. If mation that the district manager, Cus- the district manager, Customer Service tomer Service and Sales, considered, and Sales, decides against the proposed and the decision must stand on the discontinuance, he or she must post, in record. No information or views sub- the post office considered for dis- mitted by customers may be excluded. continuance, a notice stating that the (ii) The docket number assigned to proposed closing or consolidation is not the proposal must be the ZIP Code of warranted. the office proposed for closing or con- (ii) Discontinuance warranted. If the solidation. district manager, Customer Service (iii) The record must include a chron- and Sales, decides that the proposed ological index in which each document discontinuance is justified, the appro- contained is identified and numbered priate sections of the proposal must be as filed. revised, taking into account the com- (iv) As written communications are ments received from the public. After received in response to the public no- making necessary revisions, the man- tice and invitation for comments, they ager must: are included in the record. (v) A complete copy of the record (A) Forward the revised proposal and must be available for public inspection the entire record to the chief mar- during normal office hours at the post keting officer/senior vice president for office proposed for discontinuance or at final review. the post office providing alternative (B) Attach a certificate that all docu- service, if the office to be discontinued ments in the record are originals or was temporarily suspended, beginning true and correct copies. no later than the date on which notice (f) Postal Service decision—(1) In gen- is posted and extending through the eral. The chief marketing officer/senior comment period. vice president or a designee must re- (vi) Copies of documents in the view the proposal of the district man- record (except the proposal and com- ager, Customer Service and Sales. This ment form) are provided on request and review and the decision on the proposal on payment of fees as noted in the Ad- must be based on and supported by the ministrative Support Manual (ASM) record developed by the district man- § 352.6. ager, Customer Service and Sales. The (e) Consideration of public comments chief marketing officer/senior vice and final local recommendation—(1) president can instruct the district Analysis of comments. After waiting not manager to provide more information less than 60 days after notice is posted to supplement the record. Each such under § 241.3(d)(1) the district manager, instruction and the response must be Customer Service and Sales, must pre- added to the record. The decision on pare an analysis of the public com- the proposal of the district manager, ments received for consideration and which must also be added to the record, inclusion in the record. If possible, may approve or disapprove the pro- comments subsequently received posal, or return it for further action as should also be included in the analysis. set forth below. The analysis should list and briefly de- (2) Approval. The chief marketing of- scribe each point favorable to the pro- ficer/senior vice president or a designee posal and each point unfavorable to the may approve the proposal of the dis- proposal. The analysis should identify trict manager, Customer Service and

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Sales, with or without further revi- district manager, Customer Service sions. If approved, the term ‘‘Final De- and Sales, must: termination’’ is substituted for ‘‘Pro- (i) Provide notice of the Final Deter- posal’’ in the title. A copy of the Final mination by posting a copy promi- Determination must be provided to the nently in the affected post office or of- district manager. The Final Deter- fices. The date of posting must be mination constitutes the Postal Serv- noted on the first page of the posted ice determination for the purposes of 39 copy as follows: U.S.C. 404(b). The Final Determination must include the following notices: ‘‘Date of posting:’’ (i) Supporting materials. ‘‘Copies of all The district manager, Customer Service materials on which this Final Deter- and Sales, must notify the chief marketing mination is based are available for pub- officer/senior vice president in writing of the lic inspection at the (Name) Post Office date of posting. during normal office hours.’’ (ii) Ensure that a copy of the com- (ii) Appeal rights. ‘‘This Final Deter- pleted record is available for public in- mination to (close) (consolidate) the spection during normal business hours (name) Post Office may be appealed by at each post office where the Final De- any person served by that office to the termination is posted for 30 days from Postal Rate Commission. Any appeal the posting date. must be received by the Commission (iii) Provide copies of documents in within 30 days of the date this Final the record on request and payment of Determination was posted. If an appeal fees as noted in the ASM 352.6. is filed, copies of appeal documents (2) Implementation of determinations prepared by the Postal Rate Commis- not appealed. If no appeal is filed pursu- sion, or the parties to the appeal, must ant to 39 U.S.C. 404(b)(5), the official be made available for public inspection closing date of the office must be pub- at the (name) Post Office during nor- lished in the Postal Bulletin, effective mal office hours.’’ the first Saturday 90 days after the (3) Disapproval. The chief marketing Final Determination was posted. A dis- officer/senior vice president or a des- trict manager, Customer Service and ignee may disapprove the proposal of Sales, may request a different date for the district manager, Customer Service official discontinuance in the Post Of- and Sales, and return it and the record fice Change Announcement document to the manager with written reasons submitted to the chief marketing offi- for disapproval. The manager must cer/senior vice president. However, the post a notice in each affected post of- post office may not be discontinued fice that the proposed closing or con- sooner than 60 days after the posting of solidation has been determined to be the notice required by § 241.3(g)(1). unwarranted. (3) Actions during appeal—(i) Imple- (4) Return for further action. The chief mentation of discontinuance. If an appeal marketing officer/senior vice president is filed, only the chief marketing offi- or a designee may return the proposal cer/senior vice president may direct a of the district manager, Customer discontinuance before disposition of Service and Sales, with written in- the appeal. However, the post office structions to give additional consider- may not be discontinued sooner than 60 ation to matters in the record, or to days after the posting of notice re- obtain additional information. Such in- quired by § 241.3(g)(1). structions must be placed in the (ii) Display of appeal documents. Clas- record. sification and Customer Service, Post- (5) Public file. Copies of each Final al Service General Counsel, must pro- Determination and each disapproval of vide the district manager, Customer a proposal by the chief marketing offi- Service and Sales, with copies of all cer/senior vice president, must be pleadings, notices, orders, briefs, and placed on file in the Postal Service opinions filed in the appeal proceeding. Headquarters Library. (A) The district manager must ensure (g) Implementation of final that copies of all these documents are determination—(1) Notice of final deter- prominently displayed and available mination to discontinue post office. The for public inspection in the post office

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to be discontinued. If the operation of Use of emergency and temporary space that post office has been suspended, the will be limited to 180 days in duration. manager must display copies in the af- Any additional incremental time peri- fected post offices. ods of up to 180 days each must be ap- (B) All documents except the Postal proved by the Vice President, Facili- Rate Commission’s final order and ties. opinion must be displayed until the (2) This section does not apply when final order and opinion are issued. The the project under consideration is lim- final order and opinion must be dis- ited to repair and alterations, such as— played for 30 days. (i) Painting; (4) Actions following appeal decision— (ii) Repairs; (i) Determination affirmed. If the Com- (iii) Replacement or upgrade of struc- mission dismisses the appeal or affirms tural or functional elements of a postal the Postal Service’s determination, the building or of its equipment; official closing date of the office must be published in the Postal Bulletin, ef- (iv) Paving, striping, or other repair fective the first Saturday 90 days after of parking areas; the Commission renders its opinion, if (v) Landscaping. not previously implemented under (b) Purpose. The purpose of the proce- § 241.3(g)(3)(i). However, the post office dures required by this section is to as- may not be discontinued sooner than 60 sure increased opportunities for mem- days after the posting of the notice re- bers of the communities who may be quired under § 241.3(g)(1). affected by certain USPS facility (ii) Determination returned for further projects, along with local officials, to consideration. If the Commission re- convey their views concerning the con- turns the matter for further consider- templated project and have them con- ation, the chief marketing officer/sen- sidered prior to any final decision to ior vice president must direct that ei- expand, relocate to another existing ther (A) notice be provided under building, or construct a new building § 241.3(f)(3) that the proposed dis- that is owned or leased. continuance is determined not to be (c) Expansion, relocation, new con- warranted or (B) the matter be re- struction. When a need is identified that turned to an appropriate stage under will require the expansion, relocation, these regulations for further consider- or new construction of a customer ation following such instructions as service facility, postal representatives the chief marketing officer/senior vice responsible for the project will take president may provide. the following steps in accordance with the time schedule shown: [59 FR 29725, June 9, 1994, as amended at 60 FR 32273, June 21, 1995] (1) Personally visit one or more of the highest ranking local public offi- § 241.4 Expansion, relocation, and con- cials (generally individuals holding struction of post offices. elective office). During the visit, the (a) Application. (1) This section ap- postal representatives will— plies when the USPS contemplates any (i) Identify the need and fully de- one of the following projects with re- scribe the project that is under consid- spect to a customer service facility: ex- eration to meet it, explain the process pansion, relocation to another existing by which the Postal Service will solicit building, or new construction, except and consider input from the affected when the project is to meet an emer- community, and solicit a working part- gency requirement or for temporary nership with the community officials use. Emergency situations include, but for the success of the project. are not limited to, earthquakes, floods, (ii) Emphasize that in meeting a need fire, lease terminations, safety factors, for increased space, the first priority is environmental causes, or any other ac- to expand the existing facility; the sections that would force an immediate ond priority is to find an existing relocation from an existing facility. building in the same area as the cur- Temporary relocation of space is used rent facility; and the third option is to for, but not limited to, holidays, spe- build on a new site; all within the cial events, or for overflow business. downtown area, if possible.

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(iii) Ask that a Postal Service pres- (iii) At any public meeting or hear- entation of the project be placed on the ing, advise local officials and the com- regular agenda of a public meeting or munity of their appeal rights and the hearing. If no such meeting is planned process by which an appeal can be within the next 60 days or the agenda made. Information provided must in- of a planned meeting cannot accommo- clude time limitations and an address date the project, the USPS will sched- for the appeal. ule its own public hearing concerning (5) Review comments and notify local the project, and will advertise the officials of decision. Not less than 15 meeting or hearing in a local general days after the date of the most recent circulation newspaper. public meeting, or after receipt of noti- (iv) Give the local officials a letter fication cards, make a decision that describing the intended project. takes into account community input (2) Notify the lessor of the affected and is consistent with postal objectives facility of the project, in writing. (e.g., expansion, relocation to another (3) Send an initial news release to building, or construction of a new local communications media. owned or leased facility), and notify (4)(i) Post in the public lobby of the local officials in writing. This notifica- affected post offices a copy of the let- tion must include information on the ter given to local officials, or the news availability and terms of review under release, or, space permitting, both. If paragraph (c)(6) of this section. At the such information is available at the same time, post a copy of the notifica- time, include in the posting a public tion letter in the local post office for notice of the date, time, and location the community. Take no action on the of a public meeting or hearing at least decision for at least 30 days following 7 days prior to the meeting or hearing. notification of local officials and the (ii) Except as provided in this para- community. graph, attend, or conduct, one or more (6) Within the time period identified public hearings to describe the project in paragraph (c)(5) of this section, any to the community, invite questions, so- person may request in writing that the licit written comment, and describe decision be reviewed by the Vice Presi- the process by which community input dent, Facilities, at Postal Service will be considered. If it is believed at Headquarters. No particular format is the time that the existing facility is required for requesting review, but the not able to be expanded or that expan- request must be in writing and identify sion is impracticable, disclose that fact the post office or location affected; and and the reasons supporting that belief. should identify the decision objected If, during the public meeting or hear- to, and state the reasons for the objec- ing process, a new development should tion. The Vice President, Facilities, occur to allow for an expansion of the will obtain the views of the decision existing facility, the Postal Service maker, review relevant parts of the will make a good faith effort in pur- project file, and if necessary request suing this alternative. Under excep- more information from the appellant. tional circumstances that would pre- Upon review of the facts, the Vice vent postal representatives from at- President, or a representative, will tending a public meeting or conducting issue a written determination, if pos- a postal hearing on the planned project sible, within 15 days. In no event will within a reasonable time, and subject the Postal Service take action on the to approval of the Vice President, Fa- decision being reviewed until 15 days cilities, the Postal Service may dis- following issuance of the final review tribute a notification card to all af- determination. If the determination on fected customers, seeking their com- review is to set aside the decision, the ments or other feedback. An example project process will return to the pub- of exceptional circumstances would be lic hearing stage of paragraph (c)(4) of a project in a sparsely populated area this section. remote from the seat of local govern- (7) Advertise for sites and existing ment or any forum where a postal con- buildings, in accordance with existing ducted meeting could be held. postal procedures.

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(d) Discontinuance of post offices; his- The Postal Service will give local pub- toric preservation. (1) It is the policy of lic officials written notice of any time- the Postal Service, by virtue of Board ly, written objections or recommenda- of Governors Resolution No. 82–7, to tions that it does not plan to adopt or comply with Section 106 of the general implement. provisions of the National Historic (g) Continuing communication. During Preservation Act, 16 U.S.C. 470, et seq., construction, whether renovation or Executive Order 12072, and Executive new construction, the postmaster Order 13006. Therefore, any facility should keep local officials and the com- project that will have an effect on cul- munity informed via letters and news tural resources will be undertaken in releases. The postmaster and other accordance with that policy. postal officials should plan, conduct (2) Any action involving the closing and invite the community and local of- or other discontinuance of a post office ficials to any ‘‘grand opening’’, as ap- shall be undertaken only in accordance propriate. with 39 U.S.C. 404(b) and 39 CFR 243.1. [63 FR 46656, Sept. 2, 1998] In the event a facility action is subject to both this section, and either the NHPA or the post office discontinuance PART 242—CHANGE OF SITE requirements, all comment periods and other public participation matters § 242.2 Change of site—fourth-class offices. shall be governed by those statutes. (e) Site selection. (1) When the decision Report by memorandum to chief, or- is to advertise for sites and existing ganization and management branch, buildings, and after such sites have when change in site is necessary. Com- been identified, advise local officials in plete Form 1021 when furnished. Retain writing of all contending sites, and one copy in files. If new location is one- with respect to all sites not selected, fourth of a mile or more from existing provide an explanation. This notice location, furnish a statement signed by will advise local officials, and the com- majority of customers approving munity, that no decision to select a change. When a change involves mov- site will be made for a minimum of 30 ing a post office from one county to an- days, and that comments or discus- other, notify the Deputy Postmaster sions of all sites are solicited. Post a General, of the circumstances (includ- copy of this letter in the lobby of the ing a sketch showing present and pro- affected post office for public notice. posed sites), and await approval of that (2) Once a specific site is then se- Division. lected, notify local officials in writing (39 U.S.C. 401) of the selection decision. [36 FR 4765, Mar. 12, 1971] (3) Take no final action to acquire or lease the selected site for 30 days following the notification in paragraph PART 243—CONDUCT OF OFFICES (e)(2) of this section. (f) Planning, zoning, building codes. In § 243.2 Quarters. carrying out customer service facilities (a) Employee bulletin boards. Bulletin projects, it is the policy of the Postal boards may be placed in workrooms Service to comply with local planning and employees’ lunchrooms for dis- and zoning requirements and building playing notices as prescribed in this codes consistent with prudent business manual and Management Labor Orga- practices and unique postal require- nization Agreements. ments. In order to promote a partner- (b) Location of offices. Postal units ship with local officials and assure con- may not be located in, or directly conformance with local building codes, nected to, a room in which intoxicating plans and drawings will be sent to the liquor is sold to be consumed on the appropriate building department or premises. other officials for review. Where pay- (c) Lost articles. When articles are ment of fees is normally required of turned in to employees, the name and private entities, the Postal Service will address of the finder shall be recorded pay a reasonable fee for the review. so the article may be returned to him

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if not claimed by the loser. If the name former President or Postmaster Gen- of the finder cannot be obtained, and eral are not to be displayed in post of- the article is not claimed within 30 fice lobbies or in common use public days, it must be disposed of in the service areas such as elevator lobbies same manner as unidentified material and corridors in facilities owned by or found loose in the mail. Do not return leased to the Postal Service. Further, postal money orders to the finder. Mail such photographs are not to be requi- to Money Order Branch, Accounting sitioned or purchased by postal instal- Division, U.S. Postal Service, General lations at Postal Service expense. Accounting Office Building, Wash- (39 U.S.C. 501) ington, DC 20260, with a memorandum of explanation. [36 FR 4765, Mar. 12, 1971, as amended at 39 (d) Public use of restrooms. Restrooms FR 38376, Oct. 31, 1974; 40 FR 8820, Mar. 3, 1975; 42 FR 33722, July 1, 1977; 44 FR 39854, off public corridors shall normally be July 6, 1979] kept open during regular hours of business for the benefit of the public. Where vandalism or loitering cannot be General Postal Administration controlled, postmasters may lock restrooms, furnishing those agencies PART 255—ACCESS OF PERSONS served by the restrooms, keys for em- WITH DISABILITIES TO POSTAL ployee use. This shall not be construed SERVICE PROGRAMS, ACTIVITIES, to permit access by nonpostal per- FACILITIES, AND ELECTRONIC sonnel to restrooms in restricted postal AND INFORMATION areas. TECHNOLOGY (e) Letter drops. At all except fourth- class post offices, provide a regulation Sec. letterbox for depositing mail in front of 255.1 Purpose. or next to the post office. Show collec- 255.2 Definitions. tion time schedules on letterboxes. At 255.3 Nondiscrimination under any program fourth-class offices, if a letterbox is not or activity conducted by the Postal Serv- supplied, provide a slot in the outer ice. post office door. When messengers or 255.4 Accessibility to electronic and information technology. star route carriers have access to lob- 255.5 Employment. bies, door slot deposits must lead to a 255.6 Complaint procedures. locked box. 255.7 Special arrangements for postal serv- (f) Hour signs. Display hours of win- ices. dow service prominently at all first-, 255.8 Access to postal facilities. second-, and third-class post offices, 255.9 Other postal regulations; authority of classified stations and branches, and postal managers and employees. annexes. Use Sign 41, Hours decal set, AUTHORITY: 39 U.S.C. 101, 401, 403, 1001, 1003, available in supply centers. 3403, 3404; 29 U.S.C. 791, 794, 794d. (g) Service of process on postal premises. SOURCE: 67 FR 75814, Dec. 10, 2002, unless Postmasters or other installation otherwise noted. heads shall permit service on postal premises of civil and criminal process § 255.1 Purpose. affecting employees in personal mat- (a) This part implements section 504 ters, when such service of process will of the Rehabilitation Act of 1973, as not interfere with postal operations. amended. Section 504 prohibits dis- Process servers should be directed to crimination on the basis of disability the postmaster’s or installation head’s in programs or activities conducted by office, where the employee will be executive agencies or by the Postal called in and service made. Section Service. This part also implements sec- 265.10 of this chapter contains rules re- tion 508 of the Rehabilitation Act of garding compliance with subpoena 1973, as amended. Section 508 requires duces tecum, court orders, and sum- that executive agencies and the Postal monses where official business or offi- Service ensure, absent an undue bur- cial records are involved. den, that individuals with disabilities (h) Public service areas—prohibited have access to electronic and informa- items. Photographs of an incumbent or tion technology that is comparable to

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the access of individuals who are not storage, manipulation, management, disabled. movement, control, display, switching, (b) The standards relating to elec- interchange, transmission, or reception tronic and information technology ex- of data or information. pressed here are intended to be con- (g) Postal manager. As used in this sistent with the standards announced part, ‘‘postal manager’’ means the by the Architectural and Transpor- manager or official responsible for a tation Barriers Compliance Board on service, facility, program, or activity. December 21, 2000. Those standards are (h) Qualified individual with a dis- codified at 36 CFR part 1194. ability. For purposes of this part, § 255.2 Definitions. ‘‘qualified individual with a disability’’ means: (a) Agency as used in this part means the Postal Service. (1) With respect to any Postal Serv- (b) Area/functional vice president also ice program or activity under which a includes his or her designee. person is required to perform services (c) Electronic and information tech- or to achieve a level of accomplish- nology (EIT) includes ‘‘information ment, an individual with a disability technology’’ and any equipment or who meets the essential eligibility re- interconnected system or subsystem of quirements and who can achieve the equipment that is used in the creation, purpose of the program or activity conversion, or duplication of data or without modifications in the program information. The term does not include or activity that the agency can dem- any equipment that contains embedded onstrate would result in a fundamental information technology that is used as alteration in its nature; or an integral part of the product, but the (2) With respect to any other pro- principal function of which is not the gram or activity, an individual with a acquisition, storage, manipulation, disability who meets the essential eli- management, movement, control, dis- gibility requirements for participation play, switching, interchange, trans- in, or receipt of benefits from, that pro- mission, or reception of data or infor- gram or activity. mation. (i) Section 501 means section 501 of the (d) Formal complaint means a written Rehabilitation Act of 1973, as amended. statement that contains the complainant’s name, address, and telephone Section 501 is codified at 29 U.S.C. 791. number; sets forth the nature of the (j) Section 504 means section 504 of the complainant’s disability; and describes Rehabilitation Act of 1973, as amended. the agency’s alleged discriminatory ac- Section 504 is codified at 29 U.S.C. 794. tion in sufficient detail to inform the (k) Section 508 means section 508 of agency of the nature of the alleged vio- the Rehabilitation Act of 1973, as lation of section 504 or of section 508. It amended. Section 508 is codified at 29 shall be signed by the complainant or U.S.C. 794d. by someone authorized to do so on the (l) Undue burden means significant complainant’s behalf. difficulty or expense. (e) Individual with a disability. For (m) Vice President and Consumer Advo- purposes of this part, ‘‘individual with cate also includes his or her designee. a disability’’ means any person who: (1) Has a physical or mental impair- § 255.3 Nondiscrimination under any ment that substantially limits one or program or activity conducted by more of such person’s major life activi- the Postal Service. ties; In accordance with section 504 of the (2) Has a record of such an impair- Rehabilitation Act, no qualified indi- ment; or vidual with a disability shall, solely by (3) Is regarded as having such an im- pairment. reason of his or her disability, be ex- (f) Information technology means any cluded from participation in, be denied equipment, or interconnected system the benefits of, or be subjected to dis- or subsystem of equipment, that is crimination under, any program or ac- used in the automatic acquisition, tivity conducted by the Postal Service.

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§ 255.4 Accessibility to electronic and this section, this section applies to all information technology. allegations of section 508 violations. (a) In accordance with section 508 of (b) Employment complaints. (1) The the Rehabilitation Act, the Postal Postal Service shall process complaints Service shall ensure, absent an undue of employees and applicants alleging burden, that the electronic and infor- violations of section 504 with respect to mation technology the agency procures employment according to the proce- allows: dures established by the Equal Employ- (1) Individuals with disabilities who ment Opportunity Commission in 29 are Postal Service employees or appli- CFR part 1614 pursuant to section 501 cants to have access to and use of in- of the Rehabilitation Act of 1973, as formation and data that is comparable amended, 29 U.S.C. 791. In accordance to the access to and use of information with 29 CFR part 1614, the Postal Serv- and data by Postal Service employees ice has established procedures for proc- or applicants who are not individuals essing complaints of alleged employ- with disabilities; and ment discrimination, based upon disability, in the agency’s Handbook EL– (2) Individuals with disabilities who 603, Equal Employment Opportunity Com- are members of the public seeking in- plaint Processing. formation or services from the Postal (2) The agency shall process com- Service to have access to and use of in- plaints of employees and applicants al- formation and data that is comparable leging violations of section 508 and in- to the access to and use of information volving employment in accordance and data by members of the public who with the section 508 procedures which are not individuals with disabilities. have been added to Handbook EL–603. (b) When procurement of electronic Section 508 complaints shall be proc- and information technology that meets essed to provide the remedies required the standards published by the Archi- by section 508 of the Rehabilitation tectural and Transportation Barriers Act. Compliance Board would pose an undue (c) Complaints by members of the pub- burden, the Postal Service shall pro- lic. Any individual with a disability vide individuals with disabilities cov- who believes that he or she has been ered by paragraph (a) of this section subjected to discrimination prohibited with the information and data by an by this part or by the alleged failure of alternative means of access that allows the agency to provide access to elec- the individuals to use the information tronic and information technology may and data. file a complaint by following the proce- § 255.5 Employment. dures described in this section. A complainant shall first exhaust informal No qualified individual with a dis- administrative procedures before filing ability shall, on the basis of disability, a formal complaint. be subjected to discrimination in em- (1) Informal complaints relating to Post- ployment with the Postal Service. The al Service programs or activities and to definitions, requirements, and proce- EIT. dures of section 501 of the Rehabilita- (i) A complainant initiates the infor- tion Act of 1973, as established by the mal process by informing the respon- Equal Employment Opportunity Com- sible postal manager orally or in writ- mission in 29 CFR part 1614 shall apply ing of the alleged discrimination or in- to employment within the Postal Serv- accessibility of Postal Service pro- ice. grams, activities, or EIT. Postal managers or employees who receive infor- § 255.6 Complaint procedures. mal complaints that they lack the au- (a) Applicability. Except as provided thority to resolve must promptly refer in paragraph (b)(1) of this section, this any such informal complaint to the ap- section applies to all section 504 allega- propriate postal manager, and at the tions of discrimination based upon dis- same time must notify the complain- ability in the programs or activities ant of the name, address, and telephone conducted by the Postal Service. Ex- number of the person handling the cept as provided in paragraph (b)(2) of complaint.

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

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

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

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

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Records and Information 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. As a result of the Postal Reorganiza- (a) The manager, Administration and tion Act, 39 U.S.C. 410, the U.S. Postal FOIA, under the Chief Financial Offi- Service is no longer subject to the pro- cer and Senior Vice President, admin- visions of the Federal Records Act of isters the Postal Service release of in- 1950, or any of its supporting regula- formation and privacy of information tions which provide for the conduct of programs with the assistance of FOIA records management in Federal agen- coordinators in the finance function of cies. The objective of Parts 261 through area and district offices. 268 is to provide the basis for a Postal (b) The manager, Corporate Account- Service-wide records and information ing, under the Vice President, Finance, management program affecting all or- Controller, administers the Postal ganizational components having the Service records maintenance and dis- custody of any form of information and position program. records. (c) Postal Service managers are re- [40 FR 45721, Oct. 2, 1975; 40 FR 48511, Oct. 16, sponsible for administering records and 1975] information management policies and for complying with all handbooks, di- § 261.2 Authority. rectives, and instructions in support of (a) 39 U.S.C. 401(5) states that the this policy. Postal Service has the power to acquire property it deems necessary or conven- [64 FR 41290, July 30, 1999] ient in the transaction of its business and to hold, maintain, sell, lease or PART 262—RECORDS AND INFOR- otherwise dispose of such property. MATION MANAGEMENT (b) 39 CFR 224.1(f) assigns to the DEFINITIONS Postal Service Records Office, located under Finance responsibility for the re- Sec. tention security and privacy of Postal 262.1 Purpose and scope. Service records and the power to au- 262.2 Officials. thorize the disclosure of such records 262.3 Information. and to order their disposal by destruc- 262.4 Records. tion or transfer. Included is the author- 262.5 Systems (Privacy). ity to issue records management policy 262.6 Retention and disposal. and to delegate or take appropriate ac- 262.7 Non-records. tion if that policy is not adhered to or if questions of interpretation of proce- AUTHORITY: 5 U.S.C. 552, 552a; 39 U.S.C. 401. dure arise. SOURCE: 49 FR 30693, Aug. 1, 1984, unless otherwise noted. [40 FR 45721, Oct. 2, 1975, as amended at 44 FR 51223, Aug. 31, 1979; 60 FR 57344, Nov. 15, 1995] § 262.1 Purpose and scope. § 261.3 Policy. This part contains the official defini- It is the policy of the Postal Service: tion of those basic records and infor- (a) To, as appropriate, create, pre- mation management terms that are serve, protect and disclose records frequently used throughout Postal which contain adequate and proper Service regulations and directives.

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§ 262.2 Officials. (2) Restricted information. Information that has limitations placed upon both (a) Records Custodian. The postmaster its access within the Postal Service or other head of a facility such as an and disclosure outside the Postal Serv- area vice president, district manager, ice consistent with the Privacy and or head of a postal installation or de- Freedom of Information Acts. partment who maintains Postal Serv- (i) Restricted mandatory. Information ice records. Vice presidents are the that has limitations upon its internal custodians of records maintained at access and that may be disclosed only Headquarters. Senior medical per- in accordance with an Executive Order, sonnel are the custodians of restricted public law, or other Federal statute medical records maintained within and their supporting postal regula- postal facilities. tions. (b) Manager, Administration and FOIA. (ii) Restricted discretionary. Informa- The official responsible for the tion that has limitations upon its in- issuance of policy on the protection of ternal access and that may be withheld privacy and the release of Postal Serv- from external disclosure solely in ac- ice records with the power to authorize cordance with postal regulations, con- the disclosure of such records and to sistent with the Freedom of Informa- delegate or take appropriate action if tion Act. that policy is not adhered to or if ques- (b) Classified information (National Se- tions of interpretation or procedure curity). Information about the national arise. defense and foreign relations of the (c) Information System Executive. The United States that has been deter- Postal Service official who prescribes mined under Executive Order 12356 to the existence of and the policies for an require protection against unauthor- information system; usually this is a ized disclosure and has been so des- Vice President. ignated. (d) Manager, Corporate Accounting. The official responsible for the § 262.4 Records. issuance of policy on the maintenance Recorded information, regardless of and disposition of Postal Service media, format, or physical characteris- records and information, and to dele- tics, including electronic data, devel- gate or take appropriate action if such oped or received by the Postal Service policy is not adhered to or if questions in connection with the transaction of of interpretation or procedure arise. its business and retained in its cus- [49 FR 30693, Aug. 1, 1984, as amended at 51 tody; for machine-readable records, a FR 26385, July 23, 1986; 60 FR 57344, Nov. 15, collection of logically related data 1995; 63 FR 6481, Feb. 9, 1998; 64 FR 41290, July treated as a unit. 30, 1999] (a) Permanent record. A record determined by the office of Corporate Ac- § 262.3 Information. counting or the National Archives and Data combined with the knowledge of Records Administration as having suf- its context and having the potential to ficient historical or other value to war- serve a Postal Service use. rant continued preservation. (All other (a) Sensitive information. Information records are considered temporary and which has been identified by the USPS must be scheduled for disposal.) as restricted or critical. (b) Corporate records. Those records (1) Critical information. Information series that are designated by the office that must be available in order that of Corporate Accounting as containing the Postal Service effectively perform information of legal, audit, obligatory its mission and meet legally assigned or archival value about events and responsibilities; and for which special transactions of interest to the entire precautions are taken to ensure its ac- corporate body of the Postal Service. curacy, relevance, timeliness and com- Corporate records are distinguished pleteness. This information, if lost, from operational records, which have would cause significant financial loss, value only in their day-to-day use, and inconvenience or delay in performance from precedential files, which have of the USPS mission. value only as examples.

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(c) Active record. A record that con- (1) A Postal Service automated sys- tains information used for conducting tem of records with an automated sys- current business. tem of records of another Federal agen- (d) Inactive record. A record that con- cy, or with non-Federal records, for the tains information which is not used for purpose of: conducting current business, but for (i) Establishing or verifying the eligi- which the retention period has not yet bility of, or continuing compliance expired. with statutory and regulatory require- (e) Vital records. Certain records ments by, applicants for, recipients or which must be available in the event of beneficiaries of, participants in, or pro- a national emergency in order to en- viders of services with respect to, cash sure the continuity of Postal Service or in-kind assistance or payments operations and the preservation of the under Federal benefit programs, or rights and interests of the Postal Serv- (ii) Recouping payments or delin- ice, its employees, contractors and cus- quent debts under such Federal benefit tomers. There are two types of vital programs; records: Emergency Operating Records (2) A Postal Service automated per- and Rights and Interests Records. sonnel or payroll system of records (1) Emergency operating records. Cer- with another automated personnel or tain vital records necessary to support payroll system of records of the Postal essential functions of the Postal Serv- Service or other Federal Agency or ice during and immediately following a with non-Federal records. national emergency. (d) Other computer matching activities. (2) Rights and interest records. Certain (1) The following kinds of computer vital records maintained to ensure the matches are specifically excluded from preservation of the rights and interests the term ‘‘matching program’’: of the Postal Service, its employees, (i) Statistical matches whose purpose contractors and customers. is solely to produce aggregate data stripped of personal identifiers. [49 FR 30693, Aug. 1, 1984, as amended at 51 (ii) Statistical matches whose pur- 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] (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

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prior approval of the office of Adminis- PART 263—RECORDS RETENTION tration and FOIA. AND DISPOSITION [49 FR 30693, Aug. 1, 1984, as amended at 59 FR 37160, July 21, 1994; 60 FR 57344, Nov. 15, Sec. 1995; 64 FR 41290, July 30, 1999] 263.1 Purpose and scope. 263.2 Policy. § 262.6 Retention and disposal. 263.3 Responsibility. (a) Records control schedule. A direc- 263.4 Records disposal. tive describing records series that are 263.5 Inquiries. maintained by components of the Post- AUTHORITY: 39 U.S.C. 401.

al Service; it provides maintenance, re- SOURCE: 40 FR 45722, Oct. 2, 1975, unless tention, transfer, and disposal instruc- otherwise noted. tions for each series listed, and serves as the authority for Postal officials to § 263.1 Purpose and scope. implement such instructions. This part contains the policy and (b) Disposal (records). The permanent general regulations pertaining to the removal of records or information from retention and disposition of records Postal Service custody; included are: and information throughout all organi- (1) Transfer to the National Archives. zational levels and components. (2) Donation to the Smithsonian In- stitution, local museums or historical § 263.2 Policy. societies. It is the policy of the U.S. Postal (3) Sale as waste material. Service to establish and maintain (4) Discarding. schedules specifying the retention peri- (5) Physical destruction. ods required for all official and dupli- (c) Retention period. The authorized cate record copies. Furthermore, it is length of time that a records series the policy that all duplicate record must be kept before its disposal, usu- copies and non-record material will be ally stated in terms of months or disposed of as soon as they have served years, but sometimes expressed as con- their purpose. tingent upon the occurrence of an event; usually the retention period re- § 263.3 Responsibility. fers to the period of time between the (a) Records Office. The office of Cor- creation of a series and its authorized porate Accounting has the responsi- disposal date; however, in some cases it bility for providing for the establish- refers to the length of time between ment of retention schedules and has the cutoff point and the disposal date. the authority to approve them. Fur- thermore, that office has the authority § 262.7 Non-records. to dispose of Postal Service records by (a) Non-record material. Includes transfer or destruction. blank forms and surplus publications, (b) Custodians. Custodians are respon- handbooks, circulars, bulletins, an- sible for the retention and prompt dis- nouncements, and other directives as posal of records in their custody and well as any material not directly asso- for delegating in writing, persons to ciated with the transaction of Postal perform these duties. Service business. (b) Personal papers. Those materials [40 FR 45722, Oct. 2, 1975, as amended at 60 FR created or received during an individ- 57344, Nov. 15, 1995; 64 FR 41290, July 30, 1999] ual’s period of employment with the § 263.4 Records disposal. Postal Service which are of a purely private or nonofficial character, or All disposals of records containing which were neither created nor re- sensitive information, i.e. transfers to ceived in connection with Postal Serv- records storage centers, destruction, ice business. transfers external to the USPS, and

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maintenance of accounting records re- vital, and in conjunction with the Chief garding such disposal, must be accom- Postal Inspector/Emergency Coordi- plished in accordance with procedures nator shall establish and maintain the issued by Corporate Accounting. vital records program, and ensure com- [40 FR 45722, Oct. 2, 1975, as amended at 60 FR pliance with supportive procedures. 57344, Nov. 15, 1995. Redesignated and amend- (b) Chief Postal Inspector. As the ed at 64 FR 41290, July 30, 1999] Postal Service’s Emergency Coordi- nator, the Chief Postal Inspector shall § 263.5 Inquiries. establish and maintain a program to Inquiries regarding records mainte- ensure that vital records are available nance and disposition should be di- at predesignated off-site locations for rected to the Manager, Corporate Ac- use during a national emergency. counting, United States Postal Service, (c) Custodians. Custodians are respon- 475 L’Enfant Plaza, SW., Washington, sible for following vital records pro- DC 20260–5240, or, by telephone, to the gram procedures including the for- Records Specialist, (202) 268–4869. warding of vital records to predesignated off-site locations. [64 FR 41290, July 30, 1999] [44 FR 51224, Aug. 31, 1979, as amended at 60 FR 57344, Nov. 15, 1995; 64 FR 41290, July 30, PART 264—VITAL RECORDS 1999]

Sec. § 264.4 Vital Records Program. 264.1 Purpose and scope. 264.2 Policy. Complete procedures concerning the 264.3 Responsibility. identification, categorization, proc- 264.4 Vital Records Program. essing, protection, and transfer of vital records are provided by the office of AUTHORITY: 39 U.S.C. 401. Corporate Accounting or the USPS SOURCE: 44 FR 51224, Aug. 31, 1979, unless Emergency Coordinator, as appro- otherwise noted. priate. § 264.1 Purpose and scope. [44 FR 51224, Aug. 31, 1979, as amended at 60 Certain records are critical to the FR 57344, Nov. 15, 1995; 64 FR 41290, July 30, continuity of Postal Service operations 1999] or to the preservation of the rights and interests of the Postal Service, its em- PART 265—RELEASE OF ployees, contractors or customers. To INFORMATION ensure that these records are available when needed, specific controls are re- Sec. quired which affect all organizational 265.1 Purpose and scope. components having the custody of 265.2 Policy. 265.3 Responsibility. records defined as being ‘‘vital.’’ 265.4 Inquiries. 265.5 Public reading rooms. § 264.2 Policy. 265.6 Availability of records. It is the policy of the U.S. Postal 265.7 Procedure for inspection and copying Service to ensure the availability of all of records. records considered critical to the con- 265.8 Business information; procedures for predisclosure notification to submitters. tinuity of its operations and the pres- 265.9 Schedule of fees. ervation of the rights and interests of 265.10 Annual report. the Postal Service, its employees, con- 265.11 Compliance with subpoena duces tractors, and customers. Vital records tecum, court orders, and summonses. shall be routinely maintained at 265.12 Demands for testimony or records in predesignated off-site locations to en- certain legal proceedings. sure their availability when needed by 265.13 Compliance with subpoenas, sum- management and operating personnel. monses, and court orders by postal employees within the Inspection Service where the Postal Service, the United § 264.3 Responsibility. States, or any other federal agency is not (a) Manager, Corporate Accounting. a party. The Manager, Corporate Accounting, is APPENDIX A TO PART 265—INFORMATION SERV- responsible for categorizing records as ICES PRICE LIST

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AUTHORITY: 5 U.S.C. 552; 5 U.S.C. App. 3; 39 § 265.3 Responsibility. U.S.C. 401, 403, 410, 1001, 2601. (a) Custodian. Official records are in § 265.1 Purpose and scope. the custody of the postmaster or other head of a facility or department at (a) This part contains the regulations which they are maintained, as defined of the Postal Service relating to the at § 262.2(a) of this chapter. These availability to the public of Postal custodians are responsible for respond- Service records. Included in this part ing in the first instance to requests are the regulations which implement from members of the public for Postal section 552 of title 5, U.S.C., the ‘‘Free- Service records. dom of Information Act,’’ insofar as it (b) Freedom of Information/Privacy applies to the Postal Service. Acts Officer. The USPS Freedom of In- (b) Official records of the Postal formation/Privacy Acts Officer, under Service made available pursuant to the the Manager, Administration and requirements of the Act shall be fur- FOIA, is responsible for the overall ad- nished to members of the public as pre- ministration of this part, including the scribed by this part. issuance of detailed instructions to [40 FR 7331, Feb. 19, 1975] custodians. (c) General Counsel. The General § 265.2 Policy. Counsel decides timely appeals authorized by this part. (a) It is the policy of the Postal Serv- ice to make its official records avail- [40 FR 7331, Feb. 19, 1975, as amended at 45 able to the public to the maximum ex- FR 44270, July 1, 1980; 60 FR 57344, Nov. 15, tent consistent with the public inter- 1995; 63 FR 6481, Feb. 9, 1998; 64 FR 41290, July est. This policy requires a practice of 30, 1999] full disclosure subject only to the spe- § 265.4 Inquiries. cific exemptions required or authorized by law. Inquiries regarding the availability (b) The exemptions from mandatory of Postal Service records should be di- disclosure provided by section 552(b) of rected to the appropriate records custodian. If the appropriate records cus- title 5, and section 410(c) of title 39, todian is not known, inquiries should U.S.C., for various types of records, re- be directed to the USPS Freedom of In- flect the fact that under some cir- formation/Privacy Acts Officer, U.S. cumstances the public interest may be Postal Service, 475 L’Enfant Plaza SW., better served by leaving the disclosure Washington, DC 20260–5202, telephone of particular records to the discretion (202) 268–2608. of the Postal Service than by requiring their disclosure. As to those records [60 FR 57345, Nov. 15, 1995, as amended at 64 the disclosure of which is not prohib- FR 41290, July 30, 1999] ited by statute, Executive Order, or § 265.5 Public reading rooms. regulation, the discretion vested in the Postal Service is exercised after giving The Library of the Postal Service consideration to the following: The ef- Headquarters, 475 L’Enfant Plaza SW, fect of non-disclosure on the public’s Washington, DC 20260–1641, serves as right to know about a particular mat- public reading room for the materials ter; the effect of disclosure on the right which are listed in paragraphs (a)(2), of privacy of any affected individuals; (3), (4) and (5) of § 265.6 as available for the effect of disclosure on the public public inspection and copying. Such of interest in the economical, efficient, this material as has been created by and orderly operation of the nation’s the Postal Service on or after Novem- ber 1, 1996, and has not been published mail system; and any other factors and offered for sale, also will be avail- that may be relevant under the cir- able in electronic format at the Postal cumstances. Service’s world wide web site at http:/ [40 FR 7331, Feb. 19, 1975, as amended at 45 /www.usps.gov. FR 44270, July 1, 1980] [63 FR 6481, Feb. 9, 1998]

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§ 265.6 Availability of records. copy, or, if created on or after Novem- (a) Records available to the public on ber 1, 1996, through the world wide web request—(1) General. Postal Service site identified at § 265.5. Copies of publi- records are available for inspection or cations which are not listed as for sale copying at the request of any person, or as available free of charge may be in accordance with the provisions of obtained by paying a fee in accordance this part, except as otherwise provided with § 265.9. by law or regulations, including but (4) Previously released records. Records not limited to paragraphs (b) through processed and disclosed after March 31, (g) of this section. Certain categories 1997, in response to a Freedom of Infor- of records of particular interest are mation Act request, which the Postal available on a continuing basis as pro- Service determines have become or are vided in paragraphs (a)(2), (3), and (4) of likely to become the subject of subse- this section and are listed in a public quent requests for substantially the index as provided in paragraphs (a)(4) same records, are available for inspec- and (5) of this section. Access to other tion and copying at the Headquarters records may be requested on an indi- Library. Any such records created by vidual basis in accordance with the the Postal Service on or after Novem- procedures provided in § 265.7. Official ber 1, 1996, also will be available at the records which are maintained on an Postal Service’s world wide web site electronic storage medium will nor- identified at § 265.5. Records described mally be made available, in accordance in this paragraph that were not created with this part, as an exact duplicate of by, or on behalf of, the Postal Service the requested original in a form read- generally will not be available at the able by the human eye, such as a com- world wide web site. Records will be puter print-out. On request, records available in the form in which they will be provided in a different form or were originally disclosed, except to the format if they are maintained in the extent that they contain information requested form or format or if they can that is not appropriate for public dis- be readily reproduced in the requested closure and may be withheld pursuant form or format. to this section. Any deleted material (2) Opinions. All final opinions and will be marked and the applicable ex- orders made in the adjudication of emption(s) indicated in accordance cases by the Judicial Officer and Ad- with § 265.7(d)(3). A general index of the ministrative Law Judges, all final determinations pursuant to section 404(b) records described in this paragraph is of title 39, United States Code, to close available for inspection and copying at or consolidate a post office, or to dis- the Headquarters Library. [Beginning approve a proposed closing or consoli- on or before December 31, 1999, the dation, all advisory opinions con- index also will be available at the Post- cerning the private express statutes al Service’s world wide web site.] issued pursuant to 39 CFR 310.6, and all (5) Public index. (i) A public index is bid protest decisions are on file and maintained in the Headquarters Li- available for inspection and copying at brary and at the world wide web site of the Headquarters Library and, if cre- all final opinions and orders made by ated on or after November 1, 1996, also the Postal Service in the adjudication at the Postal Service’s world wide web of cases, Postal Service policy state- site identified at § 265.5. ments which may be relied on as prece- (3) Administrative manuals and instruc- dents in the disposition of cases, ad- tions to staff. The manuals, instruc- ministrative staff manuals and instructions, and other publications of the tions that affect the public, and other Postal Service that affect members of materials which the Postal Service the public are available through the elects to index and make available to Headquarters Library and at many the public on request in the manner set post offices and other postal facilities. forth in paragraph (a) of this section. Those which are available to the public (ii) The index contains references to but are not listed for sale may be in- matters issued after July 4, 1967, and spected in the Headquarters Library, at may reference matters issued prior to any postal facility which maintains a that date.

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(iii) Any person may arrange for the (iv) Reports of market surveys con- inspection of any matter in the public ducted by or under contract in behalf index in accordance with the proce- of the Postal Service. dures of § 265.7. (v) Records indicating rural carrier (iv) Copies of the public index and of lines of travel. matters listed in the public index may (vi) Records compiled within the be purchased through the Headquarters Postal Service which would be of po- Library with payment of fees as listed tential benefit to persons or firms in in the index or as provided in § 265.9. economic competition with the Postal (v) Materials listed in the public Service. index that were created on or after No- (vii) Information which, if publicly vember 1, 1996, will also be available in disclosed, could materially increase electronic format at the Postal Serv- procurement costs. ice’s world wide web site at http:// (viii) Information which, if publicly www.usps.gov. disclosed, could compromise testing or (6) Listings of employees’ names. Upon examination materials. written request, the Postal Service (4) Interagency or internal memo- will, to the extent required by law, pro- randa or letters that would not be vide a listing of postal employees available by law to a private party in working at a particular postal facility. litigation with the Postal Service. (b) Records not subject to mandatory (5) Reports and memoranda of con- public disclosure. Certain classes of sultants or independent contractors, records are exempt from mandatory except to the extent they would be redisclosure under exemptions contained quired to be disclosed if prepared within the Freedom of Information Act and in the Postal Service. in section 410(c) of title 39, U.S.C. The (6) Files personal in nature, including Postal Service will exercise its discre- medical and personnel files, the disclo- tion, in accordance with the policy sure of which would constitute a clear- stated in § 265.2, as implemented by in- ly unwarranted invasion of personal structions issued by the office of Ad- privacy. ministration and FOIA with the ap- (7) Information prepared for use in proval of the General Counsel in deter- connection with proceedings under mining whether the public interest is chapter 36 of title 39, U.S.C., relating served by the inspection or copying of to rate, classification, and service records that are: changes. (1) Related solely to the internal per- (8) Information prepared for use in sonnel rules and practices of the Postal connection with the negotiation of col- Service. lective bargaining agreements under (2) Trade secrets, or privileged or chapter 12 of title 39, U.S.C., or min- confidential commercial or financial utes of, or notes kept during, negoti- information, obtained from any person. ating sessions conducted under such (3) Information of a commercial na- chapter. ture, including trade secrets, whether (9) Other matter specifically exempt- or not obtained from a person outside ed from disclosure by statute. the Postal Service, which under good (c) Records or information compiled for business practice would not be publicly law enforcement purposes. (1) Investiga- disclosed. This class includes, but is tory files compiled for law enforcement not limited to: purposes, whether or not considered (i) Information pertaining to meth- closed, are exempt by statute from ods of handling valuable registered mandatory disclosure except to the ex- mail. tent otherwise available by law to a (ii) Records of money orders, except party other than the Postal Service, 39 as provided in 940 of the Domestic Mail U.S.C. 410(c)(6). As a matter of policy, Manual (DMM). however, the Postal Service will nor- (iii) Technical information con- mally make records or information cerning postage meters and prototypes compiled for law enforcement purposes submitted for Postal Service approval available upon request unless the pro- prior to leasing to mailers. duction of these records:

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(i) Could reasonably be expected to tifier, the records may be treated as interfere with enforcement pro- not subject to the requirements of the ceedings; Freedom of Information Act unless the (ii) Would deprive a person of a right informant’s status as an informant has to a fair trial or an impartial adjudica- been officially confirmed. tion; (4) Authority to disclose records or (iii) Could reasonably be expected to information compiled for law enforce- constitute an unwarranted invasion of ment purposes to persons outside the personal privacy; Postal Service must be obtained from (iv) Could reasonably be expected to the Chief Postal Inspector, U.S. Postal disclose the identity of a confidential Service, Washington, DC 20260–2100, or source, including a State, local, or for- designee. eign agency or authority or any pri- (d) Disclosure of names and addresses of vate institution which furnished infor- customers. Upon request, the names and mation on a confidential basis, and, in addresses of specifically identified the case of a record or information Postal Service customers will be made compiled by a criminal law enforce- available only as follows: ment authority (such as the Postal In- (1) Change of address. The new address spection Service) in the course of a of any specific customer who has filed criminal investigation, or by an agency a permanent or temporary change of conducting a lawful national security address order (by submitting PS Form intelligence investigation, information 3575, a hand-written order, or an elec- furnished by a confidential source; tronically communicated order) will be (v) Would disclose techniques and furnished to any person upon payment procedures for law enforcement inves- of the fee prescribed in § 265.9 (e)(3) and tigations or prosecutions, or would dis- (g)(5), except that the new address of a close guidelines for law enforcement specific customer who has indicated on investigations or prosecutions if such the order that the address change is for disclosure could reasonably be ex- an individual or an entire family will pected to risk circumvention of the be furnished only in those cir- law; or cumstances stated at paragraph (d)(4) (vi) Could reasonably be expected to of this section. Disclosure will be lim- endanger the life or physical safety of ited to the address of the specifically any individual. identified individual about whom the (2) Whenever a request is made which information is requested (not other involves access to records described in family members or individuals whose § 265.6(c)(1)(i), and names may also appear on the change (i) The investigation or proceeding of address order). The Postal Service involves a possible violation of crimi- reserves the right not to disclose the nal law; and address of an individual for the protec- (ii) There is reason to believe that, tion of the individual’s personal safety. (A) The subject of the investigation Other information on PS Form 3575 or or proceeding is not aware of its pend- copies of the form will not be furnished ency, and except in those circumstances stated at (B) Disclosure of the existence of the paragraphs (d)(4)(i), (d)(4(iii), or records could reasonably be expected to (d)(4)(iv) of this section. The fee is interfere with enforcement pro- waived for providing information under ceedings, the Postal Service may, dur- the circumstances listed at paragraph ing only such time as that cir- (d)(4) of this section. See § 265.9(g)(5). cumstance continues, treat the records (2) Name and address of permit holder. as not subject to the requirements of The name and address of the holder of the Freedom of Information Act. a particular bulk mail permit, permit (3) Whenever informant records imprint or similar permit (but not in- maintained by a criminal law enforce- cluding postage meter licenses), and ment agency (such as the Postal In- the name of any person applying for a spection Service) under an informant’s permit in behalf of a holder will be fur- name or personal identifier are re- nished to any person upon the payment quested by a third party according to of any fees authorized by paragraph (b) the informant’s name or personal iden- of § 265.9. For the name and address of

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a postage meter license holder, see (ii) To a person empowered by law to paragraph (d)(3) of this section. (Lists serve legal process, or the attorney for of permit holders may not be disclosed a party in whose behalf service will be to members of the public. See para- made, or a party who is acting pro se, graph (e)(1) of this section.) upon receipt of written information (3) Name and address of postage meter that specifically includes all of the fol- license holder. The name and address of lowing: (A) A certification that the the holder of a postage meter license name or address is needed and will be authorizing use of a postage meter used solely for service of legal process printing a specified indicium will be in connection with actual or prospec- furnished to any person upon the pay- tive litigation; (B) a citation to the ment of any fees authorized by para- statute or regulation that empowers graph (b) of § 265.9, provided the holder the requester to serve process, if the is using the license for a business or firm. The request for this information requester is other than the attorney must be sent to the manager of Post- for a party in whose behalf service will age Technology Management, Postal be made, or a party who is acting pro Service Headquarters. The request se; (C) the names of all known parties must include the original or a photo- to the litigation; (D) the court in which copy of the envelope or wrapper on the case has been or will be com- which the meter indicium in question menced; (E) the docket or other identi- is printed, and a copy or description of fying number, if one has been issued; the contents to support that the sender and (F) the capacity in which the is a business or firm and not an indi- boxholder is to be served, e.g., defend- vidual. (Lists of postage meter license ant or witness. By submitting such in- holders may not be disclosed to mem- formation, the requester certifies that bers of the public. See paragraph (e)(1) it is true. The address of an individual of this section.) who files with the postmaster a copy of (4) Post office boxholder information. a protective court order will not be dis- Information from PS Form 1093, Appli- closed except as provided under para- cation for Post Office Box or Caller graphs (d)(4)(i), (d)(4)(iii), or (d)(4)(iv) Service, will be provided as follows: of this section. (i) Except as provided in paragraph The Postal Service suggests use of (d)(3)(iii) of this section, information the standard format appearing at the from PS Form 1093 will be provided end of this section when requesting in- only in those circumstances stated at formation under this paragraph. When paragraphs (d)(4)(i) through (d)(4)(iii) of using the standard format on the sub- this section. mitter’s own letterhead, the standard (ii) Except as provided in paragraph (d)(3)(iii) of this section, copies of PS format must be used in its entirety. Form 1093 will be furnished only in The warning statement and certifi- those circumstances stated at para- cation specifically must be included graphs (d)(4)(i) and (d)(4)(iii) of this immediately before the signature section. block. If the request lacks any of the (iii) When the boxholder files with required information or a proper signa- the postmaster a copy of a protective ture, the postmaster will return it to court order, information from PS Form the requester specifying the deficiency. 1093 will not be disclosed except pursu- NOTE: The term pro se means that a party ant to the order of a court of com- is not represented by an attorney but by petent jurisdiction. himself or herself. (5) Exceptions. Except as otherwise (iii) In compliance with a subpoena provided in these regulations, names or or court order, except that change of addresses of postal customers will be address or boxholder information furnished only as follows: which is not otherwise subject to dis- (i) To a federal, state or local govern- closure under these regulations may be ment agency upon prior written certifi- disclosed only pursuant to a court cation that the information is required order. for the performance of its duties.

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(iv) To a law enforcement agency, for (i) Except as provided in paragraph oral requests made through the Inspec- (d)(8)(iii) of this section, information tion Service, but only after the Inspec- from PS Form 1583 will be provided tion Service has confirmed that the in- only in those circumstances stated at formation is needed in the course of a paragraphs (d)(4)(i) and (d)(4)(iii) of criminal investigation. (All other re- this section. quests from law enforcement agencies (ii) To the public only for the purpose should be submitted in writing to the of identifying a particular address as postmaster as in paragraph (d)(4)(i) of an address of an agent to whom mail is this section.) delivered on behalf of other persons. No (6) Jury service. The mailing address other information, including, but not of any customer sought in connection limited to, the identities of persons on with jury service, if known, will be fur- whose behalf agents receive mail, may nished without charge upon prior writ- be disclosed to the public from PS ten request to a court official, such as Form 1583. a judge, court clerk or jury commis- (iii) Information concerning an indi- sioner. vidual who has filed a protective court (7) Address verification. The address of order with the postmaster will not be a postal customer will be verified at disclosed except pursuant to the order the request of a Federal, State, or local of a court of competent jurisdiction. government agency upon written cer- (e) Information not available for public tification that the information is redisclosure. (1) Except as provided by paragraph (a)(6) of this section, the quired for the performance of the agen- Postal Service and its officers and em- cy’s duties. ‘‘Verification’’ means ad- ployees shall not make available to the vising such an agency whether or not public by any means or for any purpose its address for a postal customer is one any mailing list or other list of names at which mail for that customer is cur- or addresses (past or present) of postal rently being delivered. ‘‘Verification’’ patrons or other persons. neither means nor implies knowledge (2) Records or other documents which on the part of the Postal Service as to are classified or otherwise specifically the actual residence of the customer or authorized by Executive Order 12356 as to the actual receipt by the cus- and implementing regulations to be tomer of mail delivered to that ad- kept secret in the interest of the na- dress. The Postal Service requires gov- tional defense or foreign policy are not ernment agencies to use the format ap- subject to disclosure pursuant to this pearing at the end of this section when part. requesting the verification of a cus- (3) Records consisting of trade se- tomer’s current address or a cus- crets or confidential financial data, the tomer’s new mailing address. If the redisclosure of which is prohibited by quest lacks any of the required infor- section 1905 of title 18, U.S.C., are not mation or a proper signature, or if the subject to disclosure pursuant to this request has been sent to the wrong post part. office, the postmaster will return the (4) Other records, the disclosure of request to the agency, specifying the which is prohibited by statute, are not deficiency in the space marked subject to disclosure pursuant to this ‘‘OTHER’’. part. (8) Business/Residence location. If the (f) Protection of the right of privacy. If location of a residence or a place of any record required or permitted by business is known to a Postal Service this part to be disclosed contains the employee, whether as a result of offi- name of, or other identifying details cial duties or otherwise, the employee concerning, any person, including an may, but need not, disclose the loca- employee of the Postal Service, the tion or give directions to it. No fee is disclosure of which would constitute a charged for such information. clearly unwarranted invasion of per- (9) Private mailbox information. Infor- sonal privacy, the name or other iden- mation from PS Form 1583, Application tifying details shall be deleted before for Delivery of Mail Through Agent, the record is disclosed and the re- will be provided as follows: quester so informed.

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(g) Disclosure in part of otherwise ex- neither subject to mandatory disclo- empt record. Any reasonably segregable sure nor available as a matter of dis- portion of a record shall be provided cretion. after deleting the information which is

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(Required Format Referenced at Paragraph [40 FR 7331, Feb. 19, 1975, as amended at 41 265.6(d)(6)) FR 52052, Nov. 26, 1976; 42 FR 59085, Nov. 15, 1977; 45 FR 44270, July 1, 1980; 47 FR 20304, (AGENCY LETTERHEAD) May 12, 1982; 47 FR 21248, May 18, 1982; 48 FR 1969, Jan. 17, 1983; 51 FR 8825, Mar. 14, 1986; 51 To: Postmaster FR 26386, July 23, 1986; 52 FR 13668, Apr. 24, llllllllllllllllllllllll 1987; 52 FR 22778, June 16, 1987; 53 FR 49983, Agency Control No. lllllllllllll Dec. 13, 1988; 54 FR 3558, Jan. 24, 1989; 59 FR Date: llllllllllllllllllll 11550, Mar. 11, 1994; 59 FR 22757, May 3, 1994; 59 FR 62324, Dec. 5, 1994; 59 FR 67225, 67226, ADDRESS INFORMATION REQUEST 67227, Dec. 29, 1994; 60 FR 57345, Nov. 15, 1995; Please furnish this agency with the new 62 FR 64282, Dec. 5, 1997; 63 FR 6481, Feb. 9, 1998; 64 FR 41290, July 30, 1999; 65 FR 3859, address, if available, for the following indi- Jan. 25, 2000; 67 FR 46393, July 15, 2002] vidual or verify whether or not the address given below is one at which mail for this in- § 265.7 Procedure for inspection and dividual is currently being delivered. If the copying of records. following address is a post office box, please furnish the street address as recorded on the (a) Submission of requests—(1) Form boxholder’s application form. and content of request. To permit expeditious handling and timely response in Name: llllllllllllllllllll accordance with the provisions of this Last Known Address: llllllllllll part, a request to inspect or to obtain I certify that the address information for a copy of an identifiable Postal Service this individual is required for the perform- record shall be in writing and bear the ance of this agency’s official duties. caption ‘‘Freedom of Information Act llllllllllllllllllllllll Request’’ or otherwise be clearly and (Signature of Agency Official) prominently identified as a request for llllllllllllllllllllllll records pursuant to the Freedom of In- (Title) formation Act. A request shall be llllllllllllllllllllllll clearly and prominently identified as such on the envelope or other cover. FOR POST OFFICE USE ONLY Other requests for information will be [ ] MAIL IS DELIVERED NEW ADDRESS considered informal requests and will TO ADDRESS be handled as expeditiously as prac- GIVEN ticable but not necessarily within the [ ] NOT KNOWN AT llllll time limitations set forth in § 265.7(b). ADDRESS GIVEN An informal request will be granted or [ ] MOVED, LEFT NO llllll denied according to the substantive FORWARDING rules in § 265.6, if found to be a request ADDRESS for a record. A Freedom of Information BOXHOLDER’S STREET ADDRESS Act request shall identify the record [ ] NO SUCH AD- sought as completely as possible, by DRESS name, description, or subject matter, [ ] OTHER (SPECIFY): llllll and be sufficient to permit the custo- llllll llllll dian to locate it with a reasonable llllll amount of effort. The request may state the maximum amount of fees for Agency return address Postmark/Date Stamp which the requester is willing to accept liability without prior notice. See paragraph (f)(2) of § 265.8. If no amount is stated, the requester will be deemed willing to accept liability for fees not to exceed $25. (2) To whom submitted. A request shall be submitted to the custodian of the requested record. If the location of the record is not known, inquiry should be directed to the USPS Freedom of Infor- mation/Privacy Acts Officer, U.S. Post- al Service, 475 L’Enfant Plaza, SW., Washington, DC 20260–5202, telephone

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(202) 268–2608. If a request is submitted (6) Request for records located at nu- to a facility other than that at which merous facilities. A request for records the record is maintained, it shall be which are, or may be, located at all or promptly transmitted to the appro- a substantial number of post offices or priate custodian with a copy of the other postal facilities will be deemed transmittal furnished to the requester. to be a reasonable description only of A request which is not initially sub- such of those records as are maintained mitted to the appropriate custodian at the post office or other facility to shall be deemed to have been received which the request is submitted, and of by the Postal Service for purposes of those records maintained at any other computing the time for response is ac- post offices or facilities specifically cordance with § 265.7(b) at the time identified in the request. See paragraph that it is actually received by the ap- (a)(2) of this section concerning the propriate custodian. If a request seeks custodian of records of two or more fa- records maintained at two or more facilities. cilities, the custodian shall be deemed (b) Responsibilities of the custodian. (1) to be the next senior common super- The custodian of the requested record visor of the heads of the facilities, e.g., is the person responsible for deter- district manager, area vice president. mining whether to comply with or to The office of Administration and FOIA deny the request. A custodian who is is deemed to be the custodian, for pur- not an Officer as defined in § 221.8 of poses of this part, in all instances in this chapter, however, should not deny which a request is for a listing of post- a request until he has obtained the ad- al employees. See § 265.6(a)(6). vice of Chief Field Counsel. If denial of (3) Reasons for request. In view of the a request appears necessary, the custo- possibility that some or all of the dian should seek advice as soon as pos- records may be exempt from manda- sible after receipt of the request so as tory disclosure, the requester may to provide adequate time for legal restate any reasons why the record view. Denial must be made in accord- should nevertheless be made available ance with paragraph (d) of this section. to him even if exempt. (2) The custodian shall make the de- (4) Request for waiver of fees. The re- termination whether to release or deny quester may ask that fees or the ad- the record(s) within 20 working days vance payment of fees be waived in (i.e., exclusive of Saturdays, Sundays, whole or in part. A fee waiver request and holidays) of receiving the request, shall indicate how the information will and more rapidly if feasible. The custo- be used; to whom it will be provided; dian and the requester may, by mutual whether the requester intends to use agreement, preferably in writing, es- the information for resale at a fee tablish a different response period. above actual cost; any personal or com- (3) If a requested record cannot be lo- mercial benefit that the requester ex- cated from the information supplied, pects as a result of disclosure; in what the requester should be given an oppor- manner the general public will benefit tunity to supply additional informa- from disclosure; and information as to tion and, if feasible, to confer with the the intended user’s identity, qualifica- custodian or his/her representative, in tions, expertise in the subject area, and an attempt to provide a reasonable de- ability and intention to disseminate scription of the records sought. If addi- the information to the public. (See tional information is furnished, the re- § 265.8(g)(3).) quest will be deemed to have been re- (5) Categorical requests. A request for ceived by the custodian when sufficient all or substantially all of the records additional information to identify and within a specific category will be locate the record with a reasonable deemed a reasonable description of amount of effort has been received. those records only if it is possible, (4) The custodian shall make reason- without further information, to deter- able efforts to search for the records in mine which particular records are electronic form or format, except when sought. See paragraph (b)(3) of this sec- such efforts would significantly inter- tion concerning the providing of addi- fere with the operation of the auto- tional information. mated information system.

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(5) The 20 working day response pe- (8) If a requested record is known to riod allowed in paragraph (b)(2) of this have been destroyed, disposed of, or section may be extended by the custo- otherwise not to exist, the requester dian, after consultation with Chief shall be so notified. Field Counsel or with the General (c) Compliance with request upon af- Counsel if the custodian is at Head- firmative determination by custodian. (1) quarters, for a period not to exceed an When a requested record has been iden- additional 10 working days, except as tified and is to be disclosed in whole or provided in paragraph (b)(7) of this sec- in part, the custodian shall ensure that tion, when, and to the extent, reason- the record is made available promptly ably necessary to permit the proper and shall immediately notify the re- processing of a particular request, quester where and when and under under one or more of the following un- what reasonable conditions, if any, in- usual circumstances: cluding the payment of fees, the record (i) The request requires a search for will be available for inspection or cop- and collection of records from a facil- ies will be available. Postal Service ity other than that processing the re- records will normally be available for quest. inspection and copying during regular (ii) The request requires the search business hours at the postal facilities for, and collection and appropriate ex- at which they are maintained. The cus- amination of, a voluminous amount of todian may, however, designate other separate and distinct records. reasonable locations and times for in- (iii) The request requires consulta- spection and copying of some or all of tion: the records within his custody. (A) With another agency having a (2) Any fees authorized or required to substantial interest in the determina- be paid in advance by § 265.9(f)(3) shall tion of whether to comply with the re- be paid by the requester before the quest or record is made available or a copy is (B) Among two or more components furnished unless payment is waived or of the Postal Service having substan- deferred pursuant to § 265.9(g). tial subject matter interest in the de- (3) A custodian complying with a re- termination of whether to comply with quest may designate a representative the request. to monitor any inspection or copying. (6) When the custodian finds that the (d) Denial of request. (1) A reply deny- additional time is required, he shall ac- ing a request in whole or in part shall knowledge the request in writing with- be in writing, signed by the custodian in the initial 20-day response period, or his designee, and shall include: state the reason for the delay, and indi- (i) A statement of the reason for, or cate the date on which a decision as to justification of, the denial (e.g., disclosure is expected. records personal in nature), including, (7) If a request cannot be processed if applicable, a reference to the provi- within the additional time provided by sion or provisions of § 265.6 authorizing paragraph (b)(5) of this section, in spite the withholding of the record and a of the exercise of due diligence, the brief explanation of how each provision custodian shall notify the requester of applies to the records requested. the exceptional circumstances pre- (ii) If entire records or pages are venting timely compliance and of the withheld, a reasonable estimate of the date by which it is expected that the number of records or pages, unless pro- determination will be made. The custo- viding such estimate would harm an indian also shall provide the requester an terest protected by the exemption re- opportunity to limit the scope of the lied upon. request so that it may be processed (iii) The name and title or position of within the extended time limit, or an the person responsible for the denial of opportunity to arrange with the custo- the request (see paragraph (d)(2) of this dian an alternative time frame for section). processing the request or a modified re- (iv) A statement of the right to ap- quest. The custodian shall nonetheless peal and of the appeal procedure within make a determination on the request the Postal Service (described in para- as promptly as possible. graph (e) of this section).

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(2) The custodian is ordinarily the (iii) A statement of the reasons why person responsible for the denial of the the requester believes the action or request. If the denial of a particular re- failure to act is erroneous; and quest has been directed by higher au- (iv) A statement of the relief sought. thority, however, the name and title or (f) Action on appeals. (1) The decision position of the person directing the de- of the General Counsel or his designee nial shall be given in the reply to the constitutes the final decision of the requester in place of the custodian as Postal Service on the right of the re- the person responsible for the denial, quester to inspect or copy a record, or and a copy of the denial shall be sent to expedited processing of the request, to that person. as appropriate. The General Counsel (3) When information is deleted from will give prompt consideration to an a record that is disclosed in part, the appeal for expedited processing of a re- custodian shall indicate, on the request. All other decisions normally will leased portion of the record, the be made within 20 working days from amount of information deleted, unless the time of the receipt by the General including that indication would harm Counsel. The 20-day response period an interest protected by the exemption may be extended by the General Coun- relied on. The indication must appear, sel or his designee for a period not to if technically feasible, at the place in exceed an additional 10 working days the record where such deletion is made. when reasonably necessary to permit (e) Appeal procedure. (1) If a request the proper consideration of an appeal, to inspect or to copy a record, or a re- under one or more of the unusual cir- quest for expedited processing of the cumstances set forth in paragraph request, is denied, in whole or in part, (b)(5) of this section. The aggregate if no determination is made within the number of additional working days uti- period prescribed by this section, or if lized pursuant to this paragraph (f)(1) a request for waiver of fees is not and paragraph (b) of this section, how- granted, the requester may appeal to ever, may not exceed 10. the General Counsel, U.S. Postal Serv- (2) The decision on the appeal shall ice, Washington, DC 20260–1100. be in writing. If the decision sustains a (2) The requester shall submit his ap- denial of a record, in whole or in part, peal in writing within 30 days of the or if it denies expedited processing, it date of the denial or of the other action shall state the justification therefor complained of, or within a reasonable and shall inform the requester of his time if the appeal is from a failure of right to judicial review. In the case of the custodian to act. The General records withheld, the decision also Counsel may, in his discretion, con- shall specify any exemption or exemp- sider late appeals. tions relied on and the manner in (3) In the event of the denial of a re- which they apply to the record, or por- quest or of other action or failure to tion thereof, withheld. act on the part of a custodian from (3) If not prohibited by or under law, which no appeal is taken, the General the General Counsel or his designee Counsel may, if he considers that there may direct the disclosure of a record is doubt as to the correctness of the even though its disclosure is not re- custodian’s action or failure to act, required by law or regulation. view the action or failure to act as (g) Expedited processing. (1) Criteria. A though an appeal pursuant to this sec- request for expedited processing of a tion had been taken. request for records shall be granted (4) A letter of appeal should include, when the requester demonstrates com- as applicable: pelling need. For purposes of this para- (i) A copy of the request, of any noti- graph, ‘‘compelling need’’ exists if: fication of denial or other action, and (i) Failure of the requester to obtain of any other related correspondence; the records on an expedited basis could (ii) A statement of the action, or fail- reasonably be expected to pose an im- ure to act, from which the appeal is minent threat to the life or physical taken; safety of an individual or;

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(ii) In the case of a request made by vided directly or indirectly to the Post- a person primarily engaged in dissemi- al Service by a submitter that argu- nating information, there is an ur- ably is protected from disclosure under gency to inform the public concerning Exemption 4 of the Freedom of Infor- actual or alleged federal government mation Act, 5 U.S.C. 552(b)(4), which is activity. restated in § 265.6(b)(2). (2) Request. A request for expedited (2) Submitter means any person or en- processing shall be directed in writing tity who provides business informa- to the records custodian. The requester tion, directly or indirectly, to the must provide information in sufficient Postal Service. The term includes, but detail to demonstrate compelling need is not limited to, corporations, state for the records and certify this state- governments, and foreign governments. ment to be true and correct to the best (b) Notice to submitters. (1) The custo- of the requester’s knowledge and belief. dian shall, to the extent permitted by The custodian may waive the formality law, provide a submitter with prompt of certification when deemed appro- written notice of a Freedom of Infor- priate. mation Act request for the submitter’s (3) Determination. The records custo- business information whenever re- dian shall make a determination of quired under paragraph (c) of this sec- whether to provide expedited proc- tion, except as provided in paragraph essing and notify the requester within (d) of this section, in order to afford ten days after the date of the request the submitter an opportunity to object for expedited processing. If the request to disclosure pursuant to paragraph (f) is granted, the records custodian shall of this section. Such written notice process the request for records as soon shall either describe the exact nature as practicable. If the request for expe- of the business information requested dited processing is denied, the written or provide copies of the records or por- response will include the procedures at tions of records containing the busi- paragraph (d) of this section for appeal- ness information. In the case of an ad- ing the denial. ministrative appeal, the General Coun- [40 FR 7331, Feb. 19, 1975, as amended at 45 sel shall be responsible for providing FR 44271, July 1, 1980; 47 FR 20304, May 12, such notification as may be appro- 1982; 51 FR 26386, July 23, 1986; 52 FR 13668, priate under this section. Apr. 24, 1987; 60 FR 57345, Nov. 15, 1995; 62 FR (2) When notice is given to a sub- 64282, Dec. 5, 1997; 63 FR 6482, Feb. 9, 1998; 64 mitter under paragraph (b)(1) of this FR 41290, July 30, 1999] section, the requester also shall be no- § 265.8 Business information; proce- tified that notice and an opportunity dures for predisclosure notification to object are being provided to the sub- to submitters. mitter pursuant to this section. (a) In general. This section provides a (c) When notice is required. Notice procedure by which persons submitting shall be given to a submitter whenever: business information to the Postal (1) The submitter has in good faith Service can request that the informa- designated the information as information not be disclosed pursuant to a re- tion deemed protected from disclosure quest under the Freedom of Informa- under Exemption 4, in accordance with tion Act. This section does not affect the procedure described in paragraph the Postal Service’s right, authority, (e) of this section; or or obligation to disclose information in (2) In the opinion of the custodian, or any other context, nor is it intended to of the General Counsel in the case of an create any right or benefit, substantive administrative appeal, it is likely that or procedural, enforceable at law by a disclosure of the information would re- party against the Postal Service, its of- sult in competitive harm to the sub- ficers, or any person. Existing rights of mitter. submitters are also unaffected. For (d) Exceptions to notice requirements. purposes of this section, the following The notice requirements of paragraph definitions apply: (b) of this section shall not apply if: (1) Business information means com- (1) The Postal Service determines mercial or financial information pro- without reference to the submitter

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that the information will not be dis- particular facility. Thereafter when closed; providing this type of information, the (2) The information lawfully has been submitter need only mark a submission published or has been officially made with a reference to the designation, available to the public; e.g., Privileged: see letter of 4–1–91. By (3) Disclosure of the information is written agreement with the head of the required by law (other than the Free- facility, even this marking may be dis- dom of Information Act, 5 U.S.C. 552); pensed with if it is not necessary to or alert postal employees at that facility (4) Disclosure of the particular kind of the claim of exemption. of information is required by a Postal (4) A designation made pursuant to Service regulation, except that, in such paragraph (e) of this section shall be case, advance written notice of a deci- deemed to have expired ten years after sion to disclose shall be provided to the the date the records were submitted submitter if the submitter had pro- unless the submitter requests, and provided written justification for protec- vides reasonable justification for, a tion of the information under Exemp- designation period of greater duration. tion 4 at the time of submission or a (5) The Postal Service will not deter- reasonable time thereafter. mine the validity of any request for (e) Procedure for designating business confidential treatment until a request information at the time of its submission. for disclosure of the information is re- (1) Submitters of business information ceived. shall use good-faith efforts to des- (f) Opportunity to object to disclosure. ignate, by appropriate markings, either Through the notice described in para- at the time of submission or at a rea- graph (b) of this section, the submitter sonable time thereafter, those portions shall be afforded a reasonable period of of their submissions which they deem time within which to provide the Post- to be protected from disclosure under al Service with a detailed written Exemption 4. Each record, or portion statement of any objection to disclo- thereof, to be so designated, shall be sure. Such statement shall specify all clearly marked with a suitable legend grounds for withholding any of the in- such as Privileged Business formation under any exemption of the Information—Do Not Release. When Freedom of Information Act and, in the the designated records contain some case of Exemption 4, shall demonstrate information for which an exemption is why the information is contended to be not claimed, the submitter shall clear- a trade secret or commercial or finan- ly indicate the portions for which pro- cial information that is privileged or tection is sought. confidential. Whenever possible, the (2) At the time a designation is made submitter’s claim of confidentiality pursuant to paragraph (e)(1) of this sec- should be supported by a statement or tion, the submitter shall furnish the certification by an officer or author- Postal Service with the name, title, ad- ized representative of the submitter dress and telephone number of the per- that the information in question is in son or persons to be contacted for the fact confidential, has not been dis- purpose of the notification described in closed to the public by the submitter, paragraph (b) of this section. and is not routinely available to the (3) Submitters who provide to a post- public from other sources. Information al facility business information on a provided by a submitter pursuant to recurring basis and in substantially this paragraph may itself be subject to identical form may use the following disclosure under the FOIA. simplified process: The first submission (g) Determination that confidential will provide in full the information re- treatment is warranted. If the custodian quired in paragraphs (e)(1) and (2) of determines that confidential treatment this section; shall identify the type of is warranted for any part of the re- information, e.g., PS Form 3602, to quested records, he shall inform the re- which it is intended to apply; and shall quester in writing in accordance with state that it is intended to serve as a the procedures set out in § 265.7(d) of designation for all of the information this chapter, and shall advise the re- of this type that is submitted to the quester of the right to appeal. A copy

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of the letter of denial shall also be pro- direct cost of the retrieval, including vided to the submitter of the records in computer search time, runs and oper- any case in which the submitter had ator salary, as calculated in accord- been notified of the request pursuant ance with the Information Services to paragraph (c) of this section. Price List in effect at the time that the (h) Notice of intent to disclose. The cus- retrieval services are performed. The todian, in the case of an initial request, list is subject to periodic revision. A or the General Counsel, in the case of copy of the list is included within the an appeal, shall consider carefully a public index. (See appendix A.) submitter’s objections and specific (2) Duplication. (i) Except where oth- grounds for nondisclosure prior to de- erwise specifically provided in postal termining whether to disclose business regulations, the fee for duplicating any information. In the event of a decision record or publication is $.15 per page. to disclose business information over (ii) The Postal Service may at its dis- the objection of the submitter, the sub- cretion make coin-operated copy ma- mitter shall be furnished a written no- chines available at any location or oth- tice which shall include: erwise give the requester the oppor- (1) A description of the business in- tunity to make copies of Postal Service formation to be disclosed; records at his own expense. Unless au- (2) A statement of the reasons for thorized by the office of Administra- which the submitter’s disclosure objection and FOIA, however, no off-site tions were not sustained; and copying shall be permitted of records (3) The specific date upon which dis- which, if lost, could not be replaced closure will occur. Such notice of in- without inconvenience to the Postal tent to disclose shall be forwarded to Service. the submitter a reasonable number of (iii) The Postal Service will normally days prior to the specified disclosure furnish only one copy of any record. If date and the requester shall be notified duplicate copies are furnished at the likewise. request of the requester, the per-page (i) Notice of FOIA lawsuit. Whenever a fee shall be charged for each copy of requester brings suit seeking to compel each duplicate page without regard to disclosure of business information, the whether the requester is eligible for General Counsel shall promptly notify free copies pursuant to paragraph (c) or the submitter. (g) of this section. At his discretion, [56 FR 56934, Nov. 7, 1991] when it is reasonably necessary because of a lack of adequate copying fa- § 265.9 Schedule of fees. cilities or other circumstances, the (a) Policy. The purpose of this section custodian may make the requested is to establish fair and equitable fees to record available to the requester for in- permit the furnishing of records to spection under reasonable conditions members of the public while recovering and need not furnish a copy thereof. the full allowable direct costs incurred (3) Review. The fee for each quarter by the Postal Service. The Postal Serv- hour spent by clerical personnel in re- ice will use the most efficient and least viewing records located in response to costly methods available to it when a commercial use request is $4.40. When complying with requests for records. review cannot be performed by clerical (b) Standard rates—(1) Record retrieval. personnel and must be performed by Searches may be done manually or by professional or managerial personnel, computer using existing programming. the fee for each quarter hour is $5.35. (i) Manual search. The fee for each Only requesters who are seeking docu- quarter hour spent by clerical per- ments for commercial use may be sonnel in searching for records is $4.40. charged for review. ‘‘Review’’ is defined When a search cannot be performed by in paragraph (h)(4) of this section; clerical personnel and must be per- ‘‘commercial use’’ is defined in para- formed by professional or managerial graph (h)(5) of this section. personnel, the fee for each quarter hour (4) Micrographics. Paragraphs (b) (1), in searching for records is $5.35. (2) and (3) of this section also apply to (ii) Computer search. The fee for re- information stored within micro- trieving data by computer is the actual graphic systems.

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(c) Four categories of fees to be charged. (2) of this section, except that the first For the purpose of assessing fees under 100 pages of duplication and the first this section, a requester shall be classi- two hours of search time shall be fur- fied into one of four categories: com- nished without charge. (See also para- mercial use requesters; educational and graphs (g)(1) and (g)(2) of this section.) noncommercial scientific institutions; (d) Aggregating requests. When the representatives of the news media; and custodian reasonably believes that a all other requesters. Requesters in each requester is attempting to break a re- category must reasonably describe the quest down into a series of requests in records sought. Fees shall be charged order to evade the assessment of fees, requesters in each category in accord- the custodian may aggregate the re- ance with the following. quests and charge accordingly. The (1) Commercial use requesters. Fees shall be charged to recover the full di- custodian shall not aggregate multiple rect costs of search, review and dupli- requests when the requests pertain to cation in accordance with the rates unrelated subject matter. Requests prescribed in paragraphs (b) (1) through made by more than one requester may (3) of this section, subject only to the be aggregated only when the custodian general waiver set out in paragraph has a concrete basis on which to con- (g)(1) of this section. The term ‘‘com- clude that the requesters are acting in mercial use request’’ is defined in para- concert specifically to avoid payment graph (h)(5). of fees. (2) Educational and noncommercial sci- (e) Other costs—(1) Publications. Publi- entific institutions. Fees shall be cations and other printed materials charged only for duplication in accord- may, to the extent that they are avail- ance with paragraph (b)(2) of this sec- able in sufficient quantity, be made tion, except that the first 100 pages fur- available at the established price, if nished in response to a particular re- any, or at cost to the Postal Service. quest shall be furnished without Fees established for printed materials charge. (See also the general waiver pursuant to laws, other than the Free- provision in paragraph (g)(1) of this dom of Information Act, that specifi- section.) To be eligible for the reduc- cally provide for the setting of fees for tion of fees applicable to this category, particular types of records are not sub- the requester must show that the reject to waiver or reduction under this quest is being made as authorized by section. and under the auspices of a qualifying institution and that the records are not (2) Other charges. When a response to sought for a commercial use, but are a request requires services or materials sought in furtherance of scholarly or other than the common one listed in scientific research. These institutions paragraph (b) of this section, the direct are defined in paragraphs (h)(6) and cost of such services or materials to (h)(7) of this section, respectively. the Postal Service may be charged, but (3) Representatives of the news media. only if the requester has been notified Fees shall be charged only for duplica- of the nature and estimated amount of tion in accordance with paragraph such cost before it is incurred. (b)(2) of this section, except that the (3) Change of address orders. Although first 100 pages furnished in response to change of address information is not a particular request shall be furnished required by the Freedom of Informa- without charge. (See also the general tion Act to be made available to the waiver provision in paragraph (g)(1) of public, the fee for obtaining this infor- this section.) To be eligible for the re- mation in accordance with paragraph duction of fees applicable to this cat- (d)(1) of § 265.6 is included in this sec- egory, the requester must meet the cri- tion as a matter of convenience. The teria in paragraph (h)(8) of this section, fee for searching for a change of ad- and the request must not be made for a dress order is $3.00. This fee is charged commercial use. regardless of whether a permanent (4) All other requesters. Fees shall be charged for search and duplication in change of address is found on file. (See accordance with paragraphs (b) (1) and paragraph (g)(5) of this section.)

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(f) Advance notice and payment of request. If the requester has no history fees—(1) Liability and payment. The re- of payment, the custodian may require quester is responsible, subject to limi- an advance payment of an amount up tations on liability provided by this to the full estimated charge before section, for the payment of all fees for commencing work on the request. services resulting from his request, (ii) When a requester has previously even if responsive records are not lo- failed to pay a fee in a timely fashion cated or are determined to be exempt (i.e., within 30 days of the date of the from disclosure. Checks in payment of billing), the requester shall be required fees should be made payable to ‘‘U.S. to pay the full amount owed, and to Postal Service.’’ make an advance payment of the full (2) Advance notice. To protect mem- amount of the estimated fee before bers of the public from unwittingly in- processing will begin on a new or pend- curring liability for unexpectedly large ing request. fees, the custodian shall notify the re- (iii) When advance payment is requester if the estimated cost is ex- quired under paragraphs (f)(3)(i) or (ii) pected to exceed $25. When search fees of this section, the time periods for re- are expected to exceed $25, but it can- sponding to the initial request or to an not be determined in advance whether appeal shall not run during the inter- any records will be located or made val between the date that notice of the available, the custodian shall notify requirement is transmitted and the the requester of the estimated amount date that the required payment or as- and of the responsibility to pay search surance of payment is received. fees even through records are not lo- (g) Restrictions on assessing fees—(1) cated or are determined to be exempt General waiver. Fees shall not be from disclosure. The notification shall charged to any requester if they would be transmitted as soon as possible after amount, in the aggregate, for a request physical receipt of the request, giving or a series of related requests, to $10 or the best estimate then available. It less. When the fees for the first 100 shall include a brief explanatory state- pages or the first two hours of search ment of the nature and extent of the time are excludable under paragraph services upon which the estimate is (c) of this section, additional costs will based and shall offer the requester an not be assessed unless they exceed $10. opportunity to confer with the custo- This general waiver does not apply to dian or his representative in an at- the fee for providing change of address tempt to reformulate the request so as information. to meet his needs at lower cost. The (2) Certain fees not charged—(i) All re- time period for responding to the requests except those for commercial use. quest shall not run during the interval Fees shall not be charged for the first between the date such notification is 100 pages of duplication and the first transmitted and the date of receipt of two hours of search time except when the requester’s agreement to bear the the request is for a commercial use as cost. No notification is required if the defined in paragraph (h)(5) of this sec- request specifically states that what- tion. When search is done by computer, ever cost is involved is acceptable or is the fees to be excluded for the first two acceptable up to a specified amount hours of search time shall be deter- that covers estimated costs or if pay- mined on the basis of the standard ment of all fees in excess of $25 has rates set out in the Information Serv- been waived. ices Price List then in effect. (See ap- (3) Advance payment. Advance pay- pendix A.) Assessment of search fees ment of fees shall not be required, ex- will begin at the point when the cost of cept: (i) When it is estimated that the the search (including the cost of equip- fees chargeable under this section are ment use and operator’s time) reaches likely to exceed $250. If the requester the equivalent dollar amount of the op- has a history of prompt payment of erator’s basic rate for two hours plus a FOIA fees, the custodian shall notify factor to cover benefits. the requester of the likely cost and ob- (ii) Requests of educational and non- tain satisfactory assurance of full pay- commercial scientific institutions, and ment before commencing work on the representatives of the news media. Fees

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shall not be charged for time spent process in accordance with paragraph searching for records in response to re- (d)(4)(ii) of § 265.6. quests submitted by educational and (iii) In compliance with a subpoena noncommercial scientific institutions or other court order. or representatives of the news media. (iv) To a law enforcement agency, for (3) Public interest waiver. The custo- oral requests made through the Inspec- dian shall waive a fee, in whole or in tion Service in accordance with para- part, and any requirement for advance graph (d)(4)(iv) of § 265.6. payment of such a fee, when he deter- (v) To postage meter manufacturers mines that furnishing the records is when they are attempting to locate a deemed to be in the public interest be- missing meter. cause it is likely to contribute significantly to public understanding of the This waiver does not apply to fees for operations or activities of the federal services performed in accordance with government, and is not primarily in section 945 of the Domestic Mail Man- the commercial interest of the re- ual. quester. This waiver may be granted (h) Definitions. As used in this sec- notwithstanding the applicability of tion, the term: other fee reductions prescribed by this (1) Direct costs include expenditures section for requesters in certain cat- actually incurred in searching for and egories. In determining whether disclo- duplicating (and in the case of com- sure is in the public interest for the mercial requesters, reviewing) docu- purposes of this waiver, the following ments to respond to a FOIA request. factors may be considered: Direct costs include, for example, the (i) The relation of the records to the salary of the employee performing operations or activities of the Postal work (the basic rate of pay for the em- Services; ployee plus a factor to cover benefits) (ii) The informative value of the in- and the cost of operating duplicating formation to be disclosed; machinery. Not included in direct costs (iii) Any contribution to an under- are overhead expenses such as costs of standing of the subject by the general space, and heating or lighting the facil- public likely to result from disclosure; ity in which the records are stored. (iv) The significance of that con- (2) Search includes all time spent tribution to the public understanding looking for material that is responsive of the subject; to a request, including page-by-page or (v) The nature of the requester’s per- line-by-line identification of material sonal interest, if any, in the disclosure within documents. Searches may be requested; and done manually or by computer using (vi) Whether the disclosure would be existing programming. A line-by-line primarily in the requester’s commer- search will be conducted only when cial interest. necessary to determine whether the (4) Waiver by officer. Any officer of document contains responsive informa- the Postal Service, as defined in § 221.8, tion and will not be employed in those his designee, or the office of Adminis- instances in which duplication of the tration and FOIA may waive in whole entire document would be the less ex- or in part any fee required by this part pensive and quicker method of com- or the requirement for advance pay- plying with a request. Search does not ment of any fee. include review of material to deter- (5) Waiver of fee for changes of address. mine whether the material is exempt The fee prescribed by paragraph (e)(3) from disclosure (see paragraph (h)(4) of of this section is waived when change this section). of address information is provided: (3) Duplication refers to the process of (i) To a Federal, state or local gov- making a copy of a document nec- ernment agency upon prior written cer- essary to respond to a FOIA request. tification that the information is re- Such copies can take the form of paper quired for the performance of its du- copy, microform, audio-visual mate- ties. rials, or machine readable documenta- (ii) To persons requesting the infor- tion (e.g., magnetic tape or disk), mation for the purpose of serving legal among others. The copy provided must

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be in a form that is reasonably usable solely for the purpose of conducting by requesters. scientific research the results of which (4) Review refers to the process of ex- are not intended to promote any par- amining documents located in response ticular product or industry. to a request that is for a commercial (8) Representative of the news media reuse (see paragraph (h)(5) of this sec- fers to any person actively gathering tion) to determine whether any portion news for an entity that is organized of any document located is exempt and operated to publish or broadcast from mandatory disclosure. It also in- news to the public. The term ‘‘news’’ cludes processing any documents for means information that is about cur- disclosure, e.g., doing all that is nec- rent events or that would be of current essary to excise them and otherwise interest to the public. Requests by prepare them for release. Review does news organizations for information not include time spent resolving gen- that will be used for the furtherance of eral legal or policy issues regarding the the organization’s commercial inter- application of exemptions. Charges ests, rather than for the dissemination may be assessed only for the initial re- of news to the public, shall be consid- view, i.e., the first time the applica- ered commercial use requests. Exam- bility of a specific exemption is ana- ples of news media entities include tel- lyzed. Costs for a subsequent review evision or radio stations broadcasting are properly assessable only when a to the public at large, and publishers of record or portion of a record withheld periodicals (but only in those instances solely on the basis of an exemption when they can qualify as disseminators later determined not to apply must be of ‘‘news’’) who make their products reviewed again to determine the appli- available for purchase or subscription cability of other exemptions not pre- by the general public. These examples viously considered. are not intended to be all-inclusive. A (5) Commercial use request refers to a ‘‘freelance’’ journalist will be regarded request from or on behalf of one who as a representative of the news media if seeks information for a use or purpose he can demonstrate a solid basis for ex- that furthers the commercial, trade, or pecting publication through a news or- profit interests of the requester or the ganization, even though not actually person on whose behalf the request is employed by it. This may be dem- made. In determining whether a re- onstrated either by a publication con- quest properly belongs in this cat- tract with the news organization or by egory, the Postal Service will look to the past publication record of the re- the use to which the requester will put quester. the documents requested. If the use is [52 FR 13668, Apr. 24, 1987, as amended at 53 not clear from the request itself, or if FR 49983, Dec. 13, 1988; 54 FR 7417, Feb. 21, there is reasonable cause to doubt the 1989. Redesignated at 56 FR 56934, Nov. 7, requester’s stated use, the custodian 1991, and amended at 56 FR 57805, Nov. 14, shall seek additional clarification from 1991; 59 FR 11550, Mar. 11, 1994; 60 FR 57345, the requester before assigning the re- Nov. 15, 1995; 64 FR 41290, July 30, 1999] quest to this category. (6) Educational institution refers to a § 265.10 Annual report. pre-school, a public or private elemen- A report concerning the administra- tary or secondary school, an institution of the Freedom of Information Act tion of graduate higher education, an and this part will be submitted to the institution of undergraduate higher Attorney General of the United States education, an institution of profes- on or before February 1 of each year, sional education, and an institution of with the first such report, for fiscal vocational education, which operates a year 1998, due on or before February 1, program or programs of scholarly re- 1999. Data for the report will be col- search. lected on the basis of fiscal year that (7) Noncommercial scientific institution begins on October 1 of each year. The refers to an institution that is not op- Attorney General, in consultation with erated on a ‘‘commercial’’ basis as that the Director, Office of Management term is defined in paragraph (h)(5) of and Budget, will prescribe the form and this section, and which is operated content of the report. The report will

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be made available to the public at the without authorization from the em- headquarters Library and on the Postal ployee. Service’s world wide web site at http:/ (ii) With authorization from the em- /www.usps.gov. ployee, the Area, Information Systems Service Center, or Chief Field Counsel [63 FR 6483, Feb. 9, 1998] will respond as follows to a request § 265.11 Compliance with subpoena from a non-Federal source for medical duces tecum, court orders, and information: summonses. (a) If, in the opinion of a Federal (a) Compliance with subpoena duces medical officer, the medical informa- tecum. (1) Except as required by Part tion indicates the existence of a malig- 262, produce other records of the Postal nancy, a mental condition, or other Service only in compliance with a sub- condition about which a prudent physi- poena duces tecum or appropriate cian would hesitate to inform a person court order. suffering from such a condition as to its exact nature and probable outcome, (2) Time, leave, and payroll records of do not release the medical information postal employees are subject to produc- to the employee or to any individual tion when a subpoena duces tecum or designated by him, except to a physi- appropriate court order has been prop- cian, designated by the employee in erly served. The custodian of the writing. If a subpoena or court order records may designate a postal em- was issued, the responding official shall ployee to present the records. The pres- caution the moving party as to the pos- entation by a designee rather than the sible dangers involved if the medical employee named in the subpoena or information is divulged. court order must meet with the approval of the attorneys for each side. In (b) If, in the opinion of a Federal addition, such records may be released medical officer, the medical informa- if authorized in writing by the em- tion does not indicate the presence of ployee. any condition which would cause a prudent physician to hesitate to inform a (3) If the subpoena involves a job-con- person of the exact nature and probable nected injury, the records are under outcome of his condition, release it in the exclusive jurisdiction of the Office response to a subpoena or court order, of Workers’ Compensation Programs, or to the employee or to any person, Department of Labor. Requests for au- firm, or organization he authorizes in thorization to produce these records writing. shall be addressed to: Office of Work- ers’ Compensation Programs, U.S. De- (c) If a Federal medical officer is not partment of Labor, Washington, DC available, refer the request to the Civil 20210–0001. Also notify the attorney re- Service Commission regional office sponsible for the issuance of the sub- with the medical certificates or other poena or court order. medical reports concerned. (4) Employee medical records are pri- (5) Do not release any records con- marily under the exclusive jurisdiction taining information as to the employ- of the U.S. Civil Service Commission. ee’s security or loyalty. The Commission has delegated author- (6) Honor subpoenas or court orders ity to the Postal Service and to the only when disclosure is authorized. Commission’s Regional Directors to re- (7) When authorized to comply with a lease medical information, in response subpoena duces tecum, do not leave the to proper requests and upon competent original records with the court. medical advice, in accordance with the (b) [Reserved] following criteria: [40 FR 7331, Feb. 19, 1975, as amended at 51 (i) Except in response to a subpoena FR 26386, July 23, 1986; 56 FR 55824, Oct. 30, or court order, do not release any med- 1991. Redesignated at 56 FR 56934, Nov. 7, ical information about an employee to 1991; 60 FR 36712, July 18, 1995; 60 FR 57345, any non-Federal entity or individual Nov. 15, 1995]

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§ 265.12 Demands for testimony or other notice for testimony or records records in certain legal pro- arising in a legal proceeding. ceedings. (3) Employee means a current em- (a) Scope and applicability of this sec- ployee or official of the Postal Service. tion. (1) This section establishes proce- (4) General Counsel means the General dures to be followed if the Postal Serv- Counsel of the United States Postal ice or any Postal Service employee re- Service, the Chief Field Counsels, or an ceives a demand for testimony con- employee of the Postal Service acting cerning or disclosure of: for the General Counsel under a delega- (i) Records contained in the files of tion of authority. the Postal Service; (5) Legal proceeding means: (ii) Information relating to records (i) A proceeding before an adjudica- contained in the files of the Postal tive authority; Service; or (ii) A legislative proceeding, except (iii) Information or records acquired for a proceeding before either House of or produced by the employee in the Congress or before any committee or course of his or her official duties or subcommittee of Congress; or because of the employee’s official sta- (iii) An administrative proceeding. tus. (6) Private litigation means a legal (2) This section does not create any proceeding to which the United States right or benefit, substantive or proce- is not a party. dural, enforceable by any person (7) Records custodian means the em- against the Postal Service. ployee who maintains a requested (3) This section does not apply to any record. For assistance in identifying of the following: the custodian of a specific record, con- (i) Any legal proceeding in which the tact the Freedom of Information/Pri- United States is a party; vacy Acts Officer, U.S. Postal Service, (ii) A demand for testimony or 475 L’Enfant Plaza, SW., Washington, records made by either House of Con- DC 20260–5202, telephone (202) 268–2608. gress or, to the extent of matter within 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- § 265.11). narily, a party seeking to obtain (4) This section does not exempt a re- records from the Postal Service should quest from applicable confidentiality submit a request in accordance with requirements, including the require- the provisions of the Freedom of Infor- ments of the Privacy Act. 5 U.S.C. 552a. mation Act (FOIA), 5 U.S.C. 552, and (b) Definitions. The following defini- the Postal Service’s regulations imple- tions apply to this section: menting the FOIA at 39 CFR 265.1 (1) Adjudicative authority includes, through 265.9 or the Privacy Act, 5 but is not limited to, the following: U.S.C. 552a and the Postal Service’s (i) A court of law or other judicial fo- regulations implementing the Privacy rums, whether local, state, or federal; Act at 39 CFR 266.1 through 266.9. and (2) A demand for testimony or (ii) Mediation, arbitration, or other records issued pursuant to the rules forums for dispute resolution. governing the legal proceeding in (2) Demand includes a subpoena, sub- which the demand arises must: poena duces tecum, request, order, or (i) Be in writing;

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(ii) Identify the requested record and/ timony or records, the employee shall or state the nature of the requested immediately notify the General Coun- testimony, describe the relevance of sel or Chief Field Counsel and request the record or testimony to the pro- instructions. ceeding, and why the information (2) An employee may not give testi- sought is unavailable by any other mony or produce records without the means; and prior authorization of the General (iii) If testimony is requested, con- Counsel. tain a summary of the requested testi- (3)(i) The General Counsel may allow mony and a showing that no document an employee to testify or produce could be provided and used in lieu of records if the General Counsel deter- testimony. mines that granting permission: (3) Procedures for service of demand (A) Would be appropriate under the are made as follows: rules of procedure governing the mat- (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

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preserved by any other means allow- thorization of the General Counsel be- able by law. fore designating a Postal Service em- (5) If a response to a demand for tes- ployee as an expert witness. timony or records is required before (f) Substitution of Postal Service em- the General Counsel determines wheth- ployees. Although a demand for testi- er to allow an employee to testify, the mony may be directed to a named employee or counsel for the employee Postal Service employee, the General shall do the following: Counsel, where appropriate, may des- (i) Inform the court or other author- ignate another Postal Service em- ity of the regulations in this section; and ployee to give testimony. Upon request (ii) Request that the demand be and for good cause shown (for example, stayed pending the employee’s receipt when a particular Postal Service em- of the General Counsel’s instructions. ployee has direct knowledge of a mate- (6) If the court or other authority de- rial fact not known to the substitute clines the request for a stay, or rules employee designated by the Postal that the employee must comply with Service), the General Counsel may per- the demand regardless of the General mit testimony by a named Postal Serv- Counsel’s instructions, the employee or ice employee. counsel for the employee shall respect- (g) Fees and costs. (1) The Postal Serv- fully decline to comply with the de- ice may charge fees, not to exceed ac- mand, citing United States ex rel. Touhy tual costs, to private litigants seeking v. Ragen, 340 U.S. 462 (1951), and the testimony or records by request or de- regulations in this section. mand. The fees, which are to be cal- (7) The General Counsel may request culated to reimburse fully the Postal the assistance of the Department of Service for processing the demand and Justice or a U.S. Attorney where nec- providing the witness or records, may essary to represent the interests of the Postal Service and the employee. include, among others: (8) At his or her discretion, the Gen- (i) Costs of time spent by employees, eral Counsel may grant a waiver of any including attorneys, of the Postal procedure described by this section, Service to process and respond to the where waiver is considered necessary demand; to promote a significant interest of the (ii) Costs of attendance of the em- United States or for other good cause. ployee and agency attorney at any dep- (9) If it otherwise is permissible, the osition, hearing, or trial; records custodian may authenticate, (iii) Travel costs of the employee and upon the request of the party seeking agency attorney; disclosure, copies of the records. No (iv) Costs of materials and equipment employee of the Postal Service shall used to search for, process, and make respond in strict compliance with the available information. terms of a subpoena duces tecum unless specifically authorized by the Gen- (2) All costs for employee time shall eral Counsel. be calculated on the hourly pay of the (e) Postal Service employees as expert employee (including all pay, allowance, witnesses. No Postal Service employee and benefits) and shall include the may testify as an expert or opinion hourly fee for each hour, or portion of witness, with regard to any matter each hour, when the employee is in arising out of the employee’s official travel, in attendance at a deposition, duties or the functions of the Postal hearing, or trial, or is processing or re- Service, for any party other than the sponding to a request or demand. United States, except that in extraor- (3) At the discretion of the Postal dinary circumstances, the General Service, where appropriate, costs may Counsel may approve such expert testi- be estimated and collected before testimony in private litigation. A Postal mony is given. Service employee may not testify as (h) Acceptance of service. This section such an expert witness without the ex- does not in any way abrogate or modify press authorization of the General the requirements of the Federal Rules Counsel. A litigant must obtain au-

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of Civil Procedure (28 U.S.C. Appendix) spection Service resources and to re- regarding service of process. duce the risk of inappropriate disclosures that might affect postal oper- [60 FR 17224, Apr. 5, 1995, as amended at 60 FR 57345, Nov. 15, 1995; 64 FR 41291, July 30, ations. 1999] (c) Definitions. For the purposes of this section: § 265.13 Compliance with subpoenas, (1) Authorizing official is the person summonses, and court orders by responsible for giving the authoriza- postal employees within the Inspec- tion for release of documents or per- tion Service where the Postal Serv- mission to testify. ice, the United States, or any other (2) Case or matter means any civil pro- federal agency is not a party. ceeding before a court of law, adminis- (a) Applicability of this section. The trative board, hearing officer, or other rules in this section apply to all fed- body conducting a judicial or adminis- eral, state, and local court proceedings, trative proceeding in which the United as well as administrative and legisla- States, the Postal Service, or another tive proceedings, other than: federal agency is not a named party. (1) Proceedings where the United (3) Demand includes any request, States, the Postal Service, or any order, or subpoena for testimony or the other federal agency is a party; production of documents. (2) Congressional requests or sub- (4) Document means all records, pa- poenas for testimony or documents; pers, or official files, including, but not (3) Consultative services and tech- limited to, official letters, telegrams, nical assistance rendered by the In- memoranda, reports, studies, calendar spection Service in executing its nor- and diary entries, graphs, notes, mal functions; charts, tabulations, data analyses, sta- (4) Employees serving as expert wit- tistical or information accumulations, nesses in connection with professional records of meetings and conversations, and consultative services under § 447.23 film impressions, magnetic tapes, com- of this chapter and under title 5, Code puter discs, and sound or mechanical of Federal Regulations, part 7001, pro- reproductions; vided that employees acting in this ca- (5) Employee or Inspection Service em- pacity must state for the record that ployee, for the purpose of this section their testimony reflects their personal only, refers to a Postal Service em- opinions and should not be viewed as ployee currently or formerly assigned the official position of the Postal Serv- to the Postal Inspection Service, stu- ice; 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 as outlined in § 224.3 of this chapter. services; and (7) Inspection Service Legal Counsel is (6) When in the opinion of the Coun- an attorney authorized by the Chief sel or the Counsel’s designee, Office of Postal Inspector to give legal advice to the Chief Postal Inspector, it has been members of the Inspection Service. determined that it is in the best inter- (8) Inspection Service Manual is the di- est of the Inspection Service or in the rective containing the standard oper- public interest. ating procedures for Postal Inspectors (b) Purpose and scope. The provisions and certain Inspection Service employ- in this section limit the participation ees. of postal employees within or assigned (9) Nonpublic includes any material or to the Inspection Service, in private information not subject to mandatory litigation, and other proceedings in public disclosure under § 265.6(b). which the Postal Service, the United (10) Official case file means official States, or any other federal agency is documents that relate to a particular not a party. The rules are intended to case or investigation. These documents promote the careful supervision of In- may be kept at any location and do not

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necessarily have to be in the same lo- (v) Prevention of the expenditure of cation in order to constitute the file. Postal Service resources for private (11) Postal Inspector reports include all purposes. written reports, letters, recordings, or (3) If additional information is nec- other memorializations made in con- essary before a determination can be junction with the duties of a Postal In- made, the authorizing official may, in spector. coordination with Inspection Service (12) Testify or testimony includes both legal counsel, request assistance from in-person oral statements before any the Department of Justice. body conducting a judicial or adminis- (e) Compliance with subpoena duces trative proceeding and statements tecum. (1) Except as required by part made in depositions, answers to inter- 262 of this chapter, produce any other rogatories, declarations, affidavits, or record of the Postal Service only in other similar documents. compliance with a subpoena duces (13) Third-party action means an ac- tecum or appropriate court order. tion, judicial or administrative, in (2) Do not release any record con- which the United States, the Postal taining information relating to an em- Service, or any other federal agency is ployee’s security or loyalty. not a named party. (3) Honor subpoenas and court orders (d) Policy. (1) No current or former only when disclosure is authorized. employee within the Inspection Service (4) When authorized to comply with a may testify or produce documents con- subpoena duces tecum or court order, do cerning information acquired in the not leave the originals with the court. course of employment or as a result of (5) Postal Inspector reports are con- his or her relationship with the Postal sidered to be confidential internal doc- Service in any proceeding to which this uments and shall not be released unless section applies (see paragraph (a) of there is specific authorization by the this section), unless authorized to do Chief Postal Inspector or the Inspector so. Authorization will be provided by: in Charge of the affected field Division, (i) The Postal Inspector in Charge of after consulting with Inspection Serv- the affected field Division, or designee, ice legal counsel. for Division personnel and records, (6) The Inspection Service Manual after that official has determined and other operating instructions issued through consultation with Inspection to Inspection Service employees are Service legal counsel that no legal ob- considered to be confidential and shall jection, privilege, or exemption applies not be released unless there is specific to such testimony or production of doc- authorization, after consultation with uments. Inspection Service legal counsel. If the (ii) The Chief Postal Inspector or des- requested information relates to con- ignee for Headquarters employees and fidential investigative techniques, or records, after that official has deter- release of the information would ad- mined through consultation with In- versely affect the law enforcement mis- spection Service legal counsel, that no sion of the Inspection Service, the sub- legal objection, privilege, or exemption poenaed official, through Inspection applies to such testimony or produc- Service legal counsel, may request an tion of documents. in camera, ex parte conference to deter- (2) Consideration shall be given to: mine the necessity for the release of (i) Statutory restrictions, as well as the information. The entire Manual any legal objection, exemption, or should not be given to any party. privilege that may apply; (7) Notes, memoranda, reports, tran- (ii) Relevant legal standards for dis- scriptions, whether written or recorded closure of nonpublic information and and made pursuant to an official inves- documents; tigation conducted by a member of the (iii) Inspection Service rules and reg- Inspection Service, are the property of ulations and the public interest; the Inspection Service and are part of (iv) Conservation of employee time; the official case file, whether stored and with the official file.

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(f) Compliance with summonses and writing and conform to the require- subpoenas ad testificandum. (1) If an In- ments outlined in paragraphs (g)(2) and spection Service employee is served (g)(3) of this section. with a third-party summons or a sub- (2) Before or simultaneously with poena requiring an appearance in service of a demand described in para- court, contact should be made with In- graph (g)(1) of this section, the request- spection Service legal counsel to deter- ing party shall serve on the Counsel, mine whether and which exemptions or Office of the Chief Postal Inspector, 475 restrictions apply to proposed testi- L’Enfant Plaza SW., Washington, DC mony. Inspection Service employees 20260–2181, an affidavit or declaration are directed to comply with sum- containing the following information: monses, subpoenas, and court orders, (i) The title of the case and the forum as to appearance, but may not testify where it will be heard; without authorization. (ii) The party’s interest in the case; (2) Postal Inspector reports or records will not be presented during (iii) The reasons for the demand; testimony, in either state or federal (iv) A showing that the requested in- courts in which the United States, the formation is available, by law, to a Postal Service, or another federal party outside the Postal Service; agency is not a party in interest, un- (v) If testimony is sought, a sum- less authorized by the Chief Postal In- mary of the anticipated testimony; spector or the Postal Inspector in (vi) If testimony is sought, a showing Charge of the affected field Division, that Inspection Service records could who will make the decision after con- not be provided and used in place of the sulting with Inspection Service legal requested testimony; counsel. If an attempt is made to com- (vii) The intended use of the docu- pel production, through testimony, the ments or testimony; and 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- ice or the United States is not a party. in accordance with the applicable rules (g) General procedures for obtaining In- of civil procedure. A copy of the sub- spection Service documents and testimony poena and affidavit or declaration, if from Inspection Service employees. (1) To not previously furnished, shall also be facilitate the orderly response to de- sent to the Chief Postal Inspector or mands for the testimony of Inspection the appropriate Postal Inspector in Service employees and production of Charge. documents in cases where the United (4) Any Inspection Service employee States, the Postal Service, or another who is served with a demand shall federal agency is not a party, all de- promptly inform the Chief Postal In- mands for the production of nonpublic spector, or the appropriate Postal In- documents or testimony of Inspection spector in Charge, of the nature of the Service employees concerning matters documents or testimony sought and all relating to their official duties and not relevant facts and circumstances. subject to the exemptions set forth in (h) Authorization of testimony or pro- paragraph (a) of this section shall be in duction of documents. (1) The Chief

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Postal Inspector or the Postal Inspec- testimony or receipt of documents by tor in Charge of the affected field Divi- the least disruptive methods to the em- sion, after consulting with Inspection ployee’s official duties. Testimony Service legal counsel, shall determine may, for example, be provided by affi- whether testimony or the production of davits, answers to interrogatories, documents will be authorized. written depositions, or depositions (2) Before authorizing the requested transcribed, recorded, or preserved by testimony or the production of docu- any other means allowable by law. ments, the Chief Postal Inspector or (i) While giving a deposition, the em- the Postal Inspector in Charge of the ployee may, at the option of the au- affected field Division shall consider thorizing official, be represented by In- the following factors: spection Service legal counsel. (i) Statutory restrictions, as well as any legal objection, exemption, or (ii) While completing affidavits, or privilege that may apply; other written reports or at any time (ii) Relevant legal standards for dis- during the process of preparing for tes- closure of nonpublic information and timony or releasing documents, the documents; employee may seek the assistance of (iii) Inspection Service rules and reg- Inspection Service legal counsel. ulations and the public interest; (7) Absent written authorization (iv) Conservation of employee time; from the authorizing official, the em- and ployee shall respectfully decline to (v) Prevention of expenditures of gov- produce the requested documents, tes- ernment time and resources solely for tify, or, otherwise, disclose the re- private purposes. quested information. (3) If, in the opinion of the author- (8) If the authorization is denied or izing official, the documents should not not received by the return date, the be released or testimony should not be employee, together with counsel, where furnished, that official’s decision is appropriate, shall appear at the stated final. time and place, produce a copy of this (4) Inspection Service legal counsel section, and respectfully decline to tes- may consult or negotiate with the tify or produce any document on the party or the party’s counsel seeking basis of the regulations in this section. testimony or documents to refine and limit the demand, so that compliance (9) The employee shall appear as or- is less burdensome, or obtain informa- dered by the subpoena, summons, or tion necessary to make the determina- other appropriate court order, unless: tion whether the documents or testi- (i) Legal counsel has advised the em- mony will be authorized. If the party ployee that an appearance is inappro- or party’s counsel seeking the docu- priate, as in cases where the subpoena, ments or testimony fails to cooperate summons, or other court order was not in good faith, preventing Inspection properly issued or served, has been Service legal counsel from making an withdrawn, discovery has been stayed; informed recommendation to the au- or thorizing official, that failure may be (ii) Where the Postal Service will presented to the court or other body present a legal objection to furnishing conducting the proceeding as a basis the requested information or testi- for objection. mony. (5) Permission to testify or to release (i) Inspection Service employees as ex- documents in all cases will be limited pert or opinion witnesses. No Inspection to matters outlined in the affidavit or Service employee may testify as an ex- declaration described in paragraph pert or opinion witness, with regard to (g)(2) of this section or to such parts as deemed appropriate by the authorizing any matter arising out of the employ- official. ee’s duties or functions at the Postal (6) If the authorizing official allows Service, for any party other than the the release of documents or testimony United States, except that in extraor- to be given by an employee, arrange- dinary circumstances, the Counsel, Of- ments shall be made for the taking of fice of the Chief Postal Inspector, may

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approve such testimony in private liti- ments pursuant to the Freedom of In- gation. An Inspection Service em- formation Act, 5 U.S.C 552a. ployee may not testify as such an ex- (l) Acceptance of service. The rules in pert or opinion witness without the ex- this section in no way modify the re- press authorization of the Counsel, Of- quirements of the Federal Rules of fice of the Chief Postal Inspector. A Civil Procedure (28 U.S.C. Appendix) litigant must first obtain authoriza- regarding service of process. tion of the Counsel, Office of the Chief [60 FR 36712, July 18, 1995] Postal Inspector, before designating an Inspection Service employee as an ex- APPENDIX A TO PART 265—INFORMATION pert or opinion witness. SERVICES PRICE LIST (j) Postal liability. This section is intended to provide instructions to In- When information is requested that must spection Service employees and does be retrieved by computer, the requester is charged for the resources required to furnish not create any right or benefit, sub- the information. Estimates are provided to stantive or procedural, enforceable by the requester in advance and are based on any party against the Postal Service. the following price list. (k) Fees. (1) Unless determined by 28 U.S.C. 1821 or other applicable statute, Service description Price Unit the costs of providing testimony, including transcripts, shall be borne by Servers A. OS390 Servers: the requesting party. Batch or on-line ...... $1,350.00 Hour. (2) Unless limited by statute, such Services ...... 25.00 Volume. costs shall also include reimbursement Media Charge (Tape Pro- .10 Page. duced). to the Postal Service for the usual and Print. ordinary expenses attendant upon the B. Production Servers: employee’s absence from his or her of- (Running UNIX or NT OS) ... 155.00 Hour. ficial duties in connection with the On-line Services ...... 13 Page. Print. case or matter, including the employ- C. Personal Computers: ee’s salary and applicable overhead On-line search ...... 6.25 15. charges, and any necessary travel ex- .13 Minutes. Print...... Page. penses as follows: D. Personnel Charges: (i) The Inspection Service is author- Software Systems ...... 81.00 Hour. ized to charge reasonable fees to par- Services ...... 70.00 Hour. Programming Services ...... 48.00 Hour. ties demanding documents or informa- Manual Unit Services. tion. Such fees, calculated to reimburse the Postal Service for the cost of responding to a demand, may include [63 FR 6483, Feb. 9, 1998] the costs of time expended by Inspec- tion Service employees, including at- PART 266—PRIVACY OF torneys, to process and respond to the INFORMATION demand; attorney time for reviewing the demand and for legal work in con- Sec. nection with the demand; expenses gen- 266.1 Purpose and scope. erated by equipment used to search for, 266.2 Policy. produce, and copy the requested infor- 266.3 Responsibility. 266.4 Collection and disclosure of informa- mation; travel costs of the employee tion about individuals. and the agency attorney, including 266.5 Notification. lodging and per diem where appro- 266.6 Procedures for requesting inspection, priate. Such fees shall be assessed at copying, or amendment of records. the rates and in the manner specified 266.7 Appeal procedure. in § 265.9. 266.8 Schedule of fees. (ii) At the discretion of the Inspec- 266.9 Exemptions. tion Service where appropriate, fees 266.10 Computer matching. and costs may be estimated and col- AUTHORITY: 39 U.S.C. 401; 5 U.S.C. 552a. lected before testimony is given. (iii) The provisions in this section do § 266.1 Purpose and scope. not affect rights and procedures gov- This part is intended to protect indi- erning public access to official docu- vidual privacy and affects all personal

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

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§ 266.4 Collection and disclosure of in- (i) The individual to whom the record formation about individuals. pertains has requested in writing that (a) The following rules govern the the information be disseminated, or collection of information about indi- (ii) It has obtained the prior written viduals throughout Postal Service op- consent of the individual to whom the erations; record pertains, or (1) The Postal Service will: (iii) The dissemination is in accord- (i) Collect, solicit and maintain only ance with paragraph (b)(2) of this sec- such information about an individual tion. 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;

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(ix) To either House of Congress or determines the applicability of a par- its committees or subcommittees to ticular routine use and the necessity the extent of matter within their juris- for adoption of a new routine use. diction; (ii) Notice. Publication of new or re- (x) To the Comptroller General or vised matching programs in the FED- any of his authorized representatives ERAL REGISTER and advance notice to in the course of the performance of the Congress and the Office of Management duties of the General Accounting Of- and Budget must be made pursuant to fice; paragraph (f) of § 266.5. (xi) Pursuant to the order of a court (iii) Computer matching agreement. The of competent jurisdiction. participants in a computer matching (3) Names and Addresses of Postal Cus- program must enter into a written tomers. The disclosure of lists of names agreement specifying the terms under or addresses of Postal customers or which the matching program is to be other persons to the public is prohib- conducted (see § 266.10). The Freedom of ited (39 U.S.C. 412). Names or addresses Information/Privacy Acts Officer, may will be disclosed only in those cases require that other matching activities permitted by 39 CFR 265.6(d) relating to be conducted in accordance with a the Release of Information. 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 Freedom of Information/Pri- nished with the information in para- vacy Acts Officer, be submitted for graph (b)(4) of this section, in addition Board approval. to the date and the reason for separa- (c) Correction Disclosure. Any person tion, if applicable. The reason for sepa- or other agency to which a personal ration must be limited to one of the record has been or is to be disclosed following terms: retired, resigned, or shall be informed of any corrections or separated. Other terms or variations of notations of dispute relating thereto these terms (e.g., retired—disability) affecting the accuracy, timeliness or may not be used. If additional informa- relevance of that personal record. tion is desired, the requester must sub- (d) Recording of Disclosure. (1) An ac- mit the written consent of the em- curate accounting of each disclosure ployee, and an accounting of the disclo- will be kept in all instances except sure must be kept. those in which disclosure is made to (6) Computer matching purposes. the subject of the record, or to Postal Records from a Postal Service system Service employees in the performance of records may be disclosed to another of their duties or is required by the agency for the purpose of conducting a Freedom of Information Act (5 U.S.C. computer matching program or other 552). matching activity as defined in para- (2) The accounting will be main- graphs (c) and (d) of § 262.5, but only tained for at least five (5) years or the after a determination by the Data In- life of the record, whichever is longer. tegrity Board that the procedural re- (3) The accounting will be made quirements of the Privacy Act, the available to the individual named in guidelines issued by the Office of Man- the record upon inquiry, except for dis- agement and Budget, and these regula- closures made pursuant to provision tions as may be applicable are met. paragraph (b)(2)(viii) of this section re- These requirements include: lating to law enforcement activities. (i) Routine use. Disclosure is made [40 FR 45723, Oct. 2, 1975, as amended at 45 FR only when permitted as a routine use 44272, July 1, 1980; 58 FR 62036, Nov. 24, 1993; of the system of records. The Freedom 59 FR 37160, July 21, 1994; 64 FR 41291, July 30, of Information/Privacy Acts Officer, 1999]

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§ 266.5 Notification. any person under compulsory legal (a) Notification of Systems. The fol- process when such process becomes a lowing procedures permit individuals matter of public record. to determine the types of personal (c) Notification of Amendment. (See records systems maintained by the § 266.7 (b)(3) relating to amendment of Postal Service. records upon request.) (1) Upon written request, the Postal (d) Notification of New Use. Any newly Service will notify any individual intended use of personal information whether a specific system named by maintained by the Postal Service will him contains a record pertaining to be published in the FEDERAL REGISTER him. See § 266.6 for suggested form of thirty (30) days before such use be- request. comes operational. Public views may (2) The Postal Service shall publish then be submitted to the office of Ad- annually in the FEDERAL REGISTER a ministration and FOIA. notice of existence and character of all (e) Notification of Exemptions. The personal systems of records. This no- Postal Service will publish within the tice will contain the following informa- FEDERAL REGISTER its intent to exempt tion: any system of records and shall specify (i) Name and location of the system, the nature and purpose of that system. (ii) Nature and purposes of the sys- (f) Notification of computer matching tem, program. The Postal Service publishes (iii) Categories of individuals on in the FEDERAL REGISTER and forwards whom personal information is main- to Congress and the Office of Manage- tained and categories of personal infor- ment and Budget advance notice of its mation generally maintained in the intent to establish, substantially re- system, vise, or renew a matching program, un- (iv) Confidentiality requirements and less such notice is published by another the extent to which access controls participant agency. In those instances apply to such information, in which the Postal Service is the ‘‘re- (v) Postal Service policies and stand- cipient’’ agency, as defined in the Act, ards regarding the safeguarding and but another participant agency spon- disclosure of information, information sors and derives the principal benefit storage, duration of retention of infor- from the matching program, the other mation, and elimination of such infor- agency is expected to publish the no- mation from the system, tice. The notice must be sent to Con- (vi) Routine uses made by the Postal gress and OMB 40 days, and published Service of the personal information at least thirty (30) days, prior to (1) ini- contained in the system, including the tiation of any matching activity under categories of users and the purpose of a new or substantially revised pro- the use, gram, or (2) expiration of the existing (vii) Title and official address of the matching agreement in the case of a custodian, renewal of a continuing program. (viii) Procedures by which an indi- [40 FR 45724, Oct. 2, 1975; 40 FR 48512, Oct. 16, vidual can be informed if a system con- 1975, as amended at 45 FR 44272, July 1, 1980; tains personal information pertaining 59 FR 37161, July 21, 1994; 60 FR 57345, Nov. 15, to him, gain access to such informa- 1995; 64 FR 41291, July 30, 1999] tion, and contest the accuracy, completeness, timeliness, relevance and ne- § 266.6 Procedures for requesting in- cessity for retention of the informa- spection, copying, or amendment of tion. records. (ix) Categories of sources of such per- The purpose of this section is to pro- sonal information, vide procedures by which an individual (x) System status—either develop- may have access and request amend- mental or operational. ment to personal information within a (b) Notification of Disclosure. The Privacy Act System of Records. Postal Service shall make reasonable (a) Submission of Requests—(1) Manner efforts to serve notice on an individual of submission. Inquiries regarding the before any personal information on contents of records systems or access such individual is made available to or amendment to personal information

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should be submitted in writing to the ever, designate other reasonable loca- custodian of the official record, if tions and times for inspection and known, or to the Freedom of Informa- copying of some or all of the records tion/Privacy Acts Officer, U.S. Postal within his custody. Service, 475 L’Enfant Plaza SW., Wash- (2) Identification of requester. The re- ington, DC 20260–5202, telephone (202) quester must present personal identi- 268–2608. Requests submitted to the Of- fication sufficient to satisfy the custo- fice of Inspector General should be sub- dian as to his identity prior to record mitted to the Freedom of Information review. Examples of sufficient identi- Act/Privacy Officer, Office of Inspector fication are a valid driver’s license, General, 1735 North Lynn Street, Ar- medicare card, and employee identi- lington, Virginia, 22209–2020. Inquiries fication cards. should be clearly marked, ‘‘Privacy (3) Responsibilities of requester. The re- Act Request’’. Any inquiry concerning quester shall assume the following re- a specific system of records should pro- sponsibilities regarding the review of vide the Postal Service with the infor- official personal records: mation contained under ‘‘Notification’’ (i) Requester must agree not to leave for that system as published in the Postal Services premises with official FEDERAL REGISTER. If the information records unless specifically given a copy supplied is insufficient to locate or for that purpose by the custodian or his identify the record, the requester will representative. be notified promptly and, if possible, (ii) Requester must sign a statement informed of additional information re- indicating he has reviewed a specific quired. If the requester is not a Postal record(s) or category of record. Service employee, he should designate (iii) Requester may be accompanied the post office at which he wishes to by a person he so chooses to aid in the review or obtain copies of records. inspection of information; however, re- Amendment requests contest the rel- quester must furnish the Postal Serv- evance, accuracy, timeliness or com- ice with written authorization for such pleteness of the record and will include review in that person’s presence. a statement of the amendment re- (4) Special rules for medical records. A quested. medical record shall be disclosed to the (2) Third party inquiries. Anyone de- requester to whom it pertains unless, siring to review or copy records per- in the judgment of the medical officer, taining to another person must have access to such record could have an ad- the written consent of that person. verse effect upon such individual. When (3) Period for response by custodian. the medical officer determines that the Upon receipt of an inquiry, the custo- disclosure of medical information dian will respond with an acknowledge- could have an adverse effect upon the ment of receipt within ten (10) days. If individual to whom it pertains, the the inquiry requires the custodian to medical officer will transmit such in- determine whether a particular record formation to a medical doctor named exists, the inquirer shall be informed of by the requesting individual. this determination as a part of the ac- (5) Limitations on access. Nothing in knowledgement letter. this section shall allow an individual (b) Compliance with Request for access to any information compiled in Access—(1) Notification of time and place reasonable anticipation of a civil ac- for inspection. When a requested record tion or proceeding. Other limitations has been identified and is to be dis- on access are those specifically ad- closed, the custodian shall ensure that dressed in §§ 266.6(b)(4) and 266.9. the record is made available promptly (6) Response when compliance is not and shall immediately notify the re- possible. A reply denying a written requester where and when the record will quest to review a record shall be in be 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

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shall include a statement regarding the (3) Any record found on appeal to be determining factors of denial, and the incomplete, inaccurate, not relevant, right to appeal to denial to the General or not timely, shall within thirty (30) Counsel. working days of the date of such find- (c) Compliance With Request for ings be appropriately amended. Amendment. (1) Correct or eliminate (4) The decision of the General Coun- any information that is found to be in- sel, constitutes the final decision of the complete, inaccurate, not relevant to a Postal Service on the right of the re- statutory purpose of the Postal Serv- quester to inspect, copy, change, or up- ice, or not timely and notify the re- date a record. The decision on the ap- quester when this action is complete, peal shall be in writing and in the or event of a denial shall set forth the (2) Not later than thirty (30) working reasons for such denial and state the days after receipt of a request to individual’s right to obtain judicial re- amend, notify the reqester of a deter- view in a district court. An indexed file mination not to amend and of the re- of decisions on appeals shall be main- quester’s right to appeal, or to submit, tained by the office of Administration in lieu of an appeal, a statement of rea- and FOIA. sonable length setting forth a position (b) Submission of Statement of Disagree- regarding the disputed information to ment. If the final decision concerning a be attached to the contested personal request for the amendment of a record record. does not satisfy the requester, any (d) Availability of Assistance in Exer- statement of reasonable length pro- cising Rights. The Freedom of Informa- vided by that individual setting forth a tion/Privacy Acts Officer is available position regarding the disputed infor- to provide an individual with assist- mation will be accepted and attached ance in exercising rights pursuant to to the relevant personal record. this part. [40 FR 45723, Oct. 2, 1975, as amended at 41 FR [40 FR 45723, Oct. 2, 1975, as amended at 45 FR 24709, June 18, 1976; 45 FR 44273, July 1, 1980; 44272, July 1, 1980; 51 FR 26386, July 23, 1986; 51 FR 26386, July 23, 1986; 60 FR 57345, Nov. 15, 60 FR 57345, Nov. 15, 1995; 64 FR 41291, July 30, 1995; 64 FR 41291, July 30, 1999] 1999; 67 FR 16024, Apr. 4, 2002] § 266.8 Schedule of fees. § 266.7 Appeal procedure. (a) Policy. The purpose of this section (a) Appeal Procedure. (1) If a request is to establish fair and equitable fees to to inspect, copy, or amend a record is permit duplication of records for sub- denied, in whole or in part, or if no de- ject individuals (or authorized rep- termination is made within the period resentatives) while recovering the full prescribed by this part, the requester allowable direct costs incurred by the shall appeal to the General Counsel, Postal Service. U.S. Postal Service, Washington, DC (b) Duplication. (1) For duplicating 20260–1100. any paper or micrographic record or (2) The requester should submit his publication or computer report, the fee appeal in writing within thirty (30) is $.15 per page, except that the first days of the date of denial, or within 100 pages furnished in response to a ninety (90) days of such request if the particular request shall be furnished 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. the per page fee is charged for each

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copy of each duplicate page without re- (ii) Subsection (c)(4) requires an gard to whether the requester is eligi- agency to inform any person or other ble for free copies pursuant to agency to which a record has been dis- § 266.8(b)(1). closed of any correction or notation of (c) Aggregating requests. When the dispute the agency has made to the custodian reasonably believes that a record in accordance with subsection requester is attempting to break a re- (d) of the Act. quest for similar types of records down (iii) Subsection (d)(1)–(4) requires an into a series of requests in order to agency to permit an individual to gain evade the assessment of fees, the custo- access to records about the individual, dian may aggregate the requests and to request amendment of such records, charge accordingly. to request a review of an agency deci- (d) Limitations. No fee will be charged sion not to amend such records, and to an individual for the process of retriev- provide a statement of disagreement ing, reviewing, or amending a record about a disputed record to be filed and pertaining to that individual. disclosed with the disputed record. (e) The Postal Service may, at its (iv) Subsection (e)(1) requires an discretion, require reimbursement of agency to maintain in its records only its costs as a condition of participation such information about an individual in a computer matching program or ac- that is relevant and necessary to activity with another agency. The agency complish a purpose required by statute to be charged is notified in writing of or executive order of the President. the approximate costs before they are (v) Subsection (e)(2) requires an agen- incurred. Costs are calculated in ac- cy to collect information to the great- cordance with the schedule of fees at est extent practicable directly from § 265.9. the subject individual when the infor- [52 FR 38230, Oct. 15, 1987, as amended at 59 mation may result in adverse deter- FR 37161, July 21, 1994] minations about an individual’s rights, benefits, and privileges under federal § 266.9 Exemptions. programs. (a) Subsections 552a(j) and (k) of title (vi) Subsection (e)(3) requires an 5, U.S.C., empower the Postmaster agency to inform each person whom it General to exempt systems of records asks to supply information of the au- meeting certain criteria from various thority under which the information is other subsections of section 552a. With sought, the purposes for which the in- respect to systems of records so ex- formation will be used, the routine empted, nothing in this part shall re- uses that may be made of the informa- quire compliance with provisions here- tion, whether disclosure is mandatory of implementing any subsections of or voluntary, and the effects of not section 552a from which those systems providing the information. have been exempted. (vii) Subsection (e)(4)(G) and (H) re- (b) At paragraph (b)(1) of this section quires an agency to publish a FEDERAL is a summary of the Act’s provisions REGISTER notice of its procedures for which exemption is claimed pursu- whereby an individual can be notified ant to, and to the extent permitted by, upon request whether the system of subsections 552a(j) and (k) of title 5, records contains information about the U.S.C., for some systems of records. individual, how to gain access to any Paragraphs (b)(2) through (6) of this record about the individual contained section identify the exempted systems in the system, and how to contest its of records, the exemptions applied to content. Subsection (e)(4)(I) requires each, and the reasons for the exemp- the foregoing notice to include the cat- tions: egories of sources in the system. (1) Explanation of the Act’s provisions (viii) Subsection (e)(5) requires an for which an exemption is claimed in the agency to maintain its records with systems discussed below. (i) Subsection such accuracy, relevance, timeliness, (c)(3) requires an agency to make avail- and completeness as is reasonably nec- able to the individual named in the essary to ensure fairness to the indi- records an accounting of each disclo- vidual in making any determination sure of records. about the individual.

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(ix) Subsection (e)(8) requires an (E) Constitute unwarranted invasions agency to make reasonable efforts to of the personal privacy of third parties serve notice on an individual when any who are involved in a certain investiga- record on such individual is made tion; available to any person under compul- (F) Intimidate potential witnesses sory legal process when such process and cause them to be reluctant to offer becomes a matter of public record. information; (x) Subsection (f) requires an agency (G) Lead to the improper influencing to establish procedures whereby an in- of witnesses, the destruction or alter- dividual can be notified upon request if ation of evidence yet to be discovered, any system of records named by the in- the fabrication of testimony, or the dividual contains a record pertaining compromising of classified material; to the individual, obtain access to the and record, and request amendment. (H) Seriously impede or compromise (xi) Subsection (g) provides for civil law enforcement, mail cover, or back- remedies if an agency fails to comply ground investigations that might in- with the access and amendment provi- volve law enforcement aspects as a re- sions of subsections (d)(1) and (d)(3), sult of the above. and with other provisions of the Act, or (ii) Application of subsections (e)(1) any rule promulgated thereunder, in and (e)(5) is impractical because the such a way as to have an adverse effect relevance, necessity, or correctness of on an individual. specific information might be estab- (xii) Subsection (m) requires an agen- lished only after considerable analysis cy to cause the requirements of the Act and as the investigation progresses. As to be applied to a contractor operating to relevance (subsection (1)), effective a system of records to accomplish an law enforcement requires the keeping agency function. of information not relevant to a spe- (2) Inspection Requirements—Inves- cific Postal Inspection Service investigative File System, USPS 080.010, In- tigation or Office of Inspector General spection Requirements—Mail Cover investigation. Such information may Program, USPS 080.020, and Office of be kept to provide leads for appropriate Inspector General-Investigative File law enforcement and to establish pat- System, USPS 300.010. These systems terns of activity that might relate to of records are exempt from 5 U.S.C. the jurisdiction of the Office of Inspec- 552a (c)(3) and (4), (d)(1)–(4), (e)(1)–(3), tor General, Postal Inspection Service, (e)(4) (G) and (H), (e)(5) and (8), (f), (g), and/or other agencies. As to accuracy and (m). In addition, system 300.010 is (subsection (e)(5)), the correctness of exempt from 5 U.S.C. 552a(e)(4)(I). The records sometimes can be established reasons for exemption follow: only in a court of law. (i) Disclosure to the record subject (iii) Application of subsections (e)(2) pursuant to subsections (c)(3), (c)(4), or and (3) would require collection of in- (d)(1)–(4) could: formation directly from the subject of (A) Alert subjects that they are tar- a potential or ongoing investigation. gets of an investigation or mail cover The subject would be put on alert that by the Postal Inspection Service or an he or she is a target of an investigation investigation by the Office of Inspector by the Office of Inspector General, or General; an investigation or mail cover by the (B) Alert subjects of the nature and Postal Inspection Service, enabling scope of the investigation and of evi- avoidance of detection or apprehen- dence obtained; sion, thereby seriously compromising (C) Enable the subject of an inves- law enforcement, mail cover, or back- tigation to avoid detection or appre- ground investigations involving law en- hension; forcement aspects. Moreover, in cer- (D) Subject confidential sources, wit- tain circumstances the subject of an nesses, and law enforcement personnel investigation is not required to provide to harassment or intimidation if their information to investigators, and infor- identities were released to the target of mation must be collected from other an investigation; sources.

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(iv) The requirements of subsections an individual’s qualifications and suit- (e)(4)(G) and (H), and (f) do not apply ability for appointment to or continued because this system is exempt from the occupancy of his position. individual access and amendment pro- (ii) In collecting information for in- visions of subsection (d). Nevertheless, vestigative and evaluative purposes, it the Postal Service has published notice is impossible to determine in advance of its notification, access, and contest what information might be of assist- procedures because access is appro- ance in determining the qualifications priate in some cases. and suitability of an individual for ap- (v) Application of subsection (e)(8) pointment. Information that seems ir- could prematurely reveal an ongoing relevant, when linked with other infor- criminal investigation to the subject of mation, can sometimes provide a com- the investigation. posite picture of an individual that as- (vi) The provisions of subsection (g) sists in determining whether that indi- do not apply because exemption from vidual should be appointed to or re- the provisions of subsection (d) renders the provisions on suits to enforce sub- tained in a position. For this reason, section (d) inapplicable. exemption from subsection (e)(1) is (vii) If one of these systems of claimed. records is operated in whole or in part (4) Personnel Records—Personnel Re- by a contractor, the exemptions search and Test Validation Records, claimed herein shall remain applicable USPS 120.120; Personnel Records—Career to it (subsection (m)). Development and Training Records, USPS (viii) The requirement of subsection 120.152. These systems of records are (e)(4)(I) does not apply to system exempt from 5 U.S.C. 552a(d)(1)–(4), 300.010, because identification of record (e)(4)(G) and (H), and (f) to the extent source categories could enable the sub- that information in the system is subject of an investigation to improperly ject to exemption pursuant to 5 U.S.C. interfere with the conduct of the inves- 552a(k)(6) as relating to the com- tigation. promise of the objectivity or fairness (3) Personnel Records—Preemployment of the testing or examination process. Investigation Records, USPS 120.110; Per- The reasons for exemption follow: sonnel Records—Postmaster Selection Pro- (i) These systems contain questions gram Records, USPS 120.130. These sys- and answers to standard testing mate- tems of records are exempt from 5 rials, the disclosure of which would U.S.C. 552a(d)(1)–(4) and (e)(1) to the ex- compromise the fairness of the future tent that information in the system is use of these materials. It is not feasible subject to exemption under 5 U.S.C. to develop entirely new examinations 552a(k)(5) as relating to the identity of after each administration as would be a source who furnished information to necessary if questions or answers were the government in confidence as a part available for inspection and copying. of an investigation conducted solely for Consequently, exemption from sub- the purpose of determining suitability, section (d) is claimed. eligibility, or qualifications of an individual for employment. The reasons for (ii) The requirements of subsections exemption follow: (e)(4)(G) and (H), and (f) do not apply to (i) During its investigation and eval- these systems for which exemption uation of an applicant for a position, from subsection (d) of the Act has been the Postal Service contacts individuals claimed. Nevertheless, the Postal Serv- who, without an assurance of anonym- ice has published notice of its notifica- ity, would refuse to provide information, access, and contest procedures be- tion concerning the subject of the in- cause access to system records that do vestigation. If a record subject were not compromise the objectivity or fair- given access pursuant to subsection ness of the testing examination process (d)(1)–(4), the promised confidentiality is appropriate in some cases. would be breached and the confidential (5) Personnel Records—Recruiting, Ex- source would be identified. The result amining, and Appointment Records, USPS would be restriction of the free flow of 120.151. This system is exempt from 5 information vital to a determination of U.S.C. 552a(d)(1)–(4), (e)(1), (e)(4)(G) and

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(H), and (f) to the extent that informa- (G) and (H), and (f) to the extent that tion in the system is subject to exemp- information in the system is subject to tion pursuant to 5 U.S.C. 552a(k)(5) as exemption pursuant to 5 U.S.C. relating to the identity of a source who 552a(k)(2) as material compiled for law has furnished information to the gov- enforcement purposes and subsection ernment in confidence as part of an in- (k)(5) as relating to the identity of a vestigation conducted solely for the source who has furnished information purpose of determining suitability, eli- to the government in confidence as a gibility, or qualifications of an indi- part of an investigation conducted vidual for employment; and to exemp- solely for the purpose of determining tion pursuant to subsection 5 U.S.C. suitability, eligibility, or qualifica- 552a(k)(6) as relating to the com- tions of an individual for employment. promise of the objectivity or fairness The reasons for exemption follow. of the testing or examination process. (i) To the extent that information in The reasons for exemption follow: this system is subject to exemption (i) To the extent that information in pursuant to 5 U.S.C. 552a(k)(2), applica- this system is subject to exemption tion of the requirements of the exemp- pursuant to 5 U.S.C. 552a(k)(5), application at subsection (d)(1)–(4) would tion of the provisions at subsection cause disruption of enforcement of the (d)(1)–(4) would reveal to the applicant laws relating to equal employment op- whose suitability is being investigated portunity (EEO). To the extent that in- the identity of individuals who sup- formation in this system is subject to plied information under a promise of exemption pursuant to 5 U.S.C. anonymity. As a result, the Postal 552a(k)(5), application of the provisions Service’s promise of confidentiality at subsection (d)(1)–(4) would reveal to would be breached, its ability to obtain the EEO complainant the identity of information in the future would be di- individuals who supplied information minished, and the information source under a promise of anonymity. It is es- could be subjected to harassment by sential to the integrity of the EEO the applicant. To the extent that infor- complaint system that information mation in this system is subject to ex- collected in the investigative process emption pursuant to 5 U.S.C. 552a(k)(6), not be prematurely disclosed and that the requirements of the exemption at witnesses be free from restraint, inter- subsection (d)(1)–(4) and the reasons for ference, coercion, or reprisal. exempting information relating to the (ii) The requirements of subsections compromise of the objectivity or fair- (e) (4) (G) and (H), and (f) do not apply ness of the testing or examination to this system for which exemption process are the same as those given in from subsection (d) of the Act has been paragraph (b)(5)(i) of this section. claimed. Nevertheless, the Postal Serv- (ii) The reasons for exempting this ice has published notice of its notifica- system of records from subsection tion, access, and contest procedures be- (e)(1) are the same as those given in cause access to system records that do paragraph (b)(4)(ii) of this section. not compromise the investigative proc- (iii) The requirements of subsections ess or reveal the identity of confiden- (e) (4) (G) and (H), and (f) do not apply tial sources is appropriate in some to this system for which exemption cases. from subsection (d) of the Act has been (7) Finance Records—Suspicious Trans- claimed. Nevertheless, the Postal Serv- action Reports, USPS 050.080. This sys- ice has published notice of its notifica- tem is exempt from 5 U.S.C. 552a (c)(3), tion, access, and contest procedures be- (d)(1) through (4), (e)(1), (e)(4)(G), cause access to system records that do (e)(4)(H), (e)(4)(I), and (f) to the extent not compromise the objectivity or fair- that information in the system is sub- ness of the testing or examination ject to exemption pursuant to 5 U.S.C. process or reveal the identity of a con- 552a(k)(2) as material compiled for law fidential is appropriate in some cases. enforcement purposes. The reasons for (6) Equal Employment Opportunity— exemption follow. EEO Discrimination Complaint Investiga- (i) Disclosure to the record subject tions, USPS 030.010. This system is ex- pursuant to subsections (c)(3) through empt from 5 U.S.C. 552a(d) (1)–(4), (e) (4) (d)(1) through (4) would violate the

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non-notification provision of the Bank Acts Officer. See paragraph (b)(6) of Secrecy Act, 31 U.S.C. 5318(g)(2), under § 266.4. which the Postal Service is prohibited (b) Procedure for submission of match- from notifying a transaction partici- ing proposals. A proposal must include pant that a suspicious transaction re- information required for the matching port has been made. In addition, the agreement discussed in paragraph (d)(1) access provisions of subsections (c)(3) of this section. The Inspection Service and (d) would alert individuals that must submit its proposals for matching they have been identified as suspects or programs and other matching activi- possible subjects of investigation and ties to the USPS Freedom of Informa- thus seriously hinder the law enforce- tion/Privacy Acts Officer through: ment purposes underlying the sus- Independent Counsel, Inspection Serv- picious transaction reports. ice, U.S. Postal Service, 475 L’Enfant (ii) This system is in compliance with Plaza SW, Rm 3417, Washington, DC subsection (e)(1), because maintenance 20260–2181. All other matching proof the records is required by law. Strict posals, whether from postal organiza- application of the relevance and neces- tions or other government agencies, sity requirements of subsection (e)(1) must be mailed directly to: Freedom of to suspicious transactions would be im- Information/Privacy Acts Officer, U.S. practical, however, because the rel- Postal Service, 475 L’Enfant Plaza SW., evance or necessity of specific informa- Washington, DC 20260–5202. tion can often be established only after (c) Lead time. Proposals must be sub- considerable analysis and as an inves- mitted to the USPS Freedom of Infor- tigation progresses. mation/Privacy Acts Officer at least 3 (iii) The requirements of subsections months in advance of the anticipated (e)(4)(G), (H), and (I) and subsection (f) starting date to allow time to meet do not apply because this system is ex- Privacy Act publication and review re- empt from the individual access and quirements. amendment provisions of subsection (d) Matching agreements. The partici- (d). Nevertheless, the Postal Service pants in a computer matching program has published notice of the record must enter into a written agreement source categories and the notification, specifying the terms under which the access, and contest procedures. matching program is to be conducted. [59 FR 35625, July 13, 1994, as amended at 66 The Freedom of Information/Privacy FR 40891, Aug. 6, 2001; 67 FR 79859, Dec. 31, Acts Officer may require similar writ- 2002] ten agreements for other matching activities. § 266.10 Computer matching. (1) Content. Agreements must specify: (a) General. Any agency or Postal (i) The purpose and legal authority Service component that wishes to use for conducting the matching program; records from a Postal Service auto- (ii) The justification for the program mated system of records in a computer- and the anticipated results, including, ized comparison with other postal or when appropriate, a specific estimate non-postal records must submit its proof any savings in terms of expected posal to the USPS Freedom of Informa- costs and benefits, in sufficient detail tion/Privacy Acts Officer. Computer for the Data Integrity Board to make matching programs as defined in para- an informed decision; graph (c) of § 262.5 must be conducted in (iii) A description of the records that accordance with the Privacy Act, im- are to be matched, including the data plementing guidance issued by the Of- elements to be used, the number of fice of Management and Budget and records, and the approximate dates of these regulations. Records may not be the matching program; exchanged for a matching program (iv) Procedures for providing notice until all procedural requirements of to individuals who supply information the Act and these regulations have that the information may be subject to been met. Other matching activities verification through computer match- must be conducted in accordance with ing programs; the Privacy Act and with the approval (v) Procedures for verifying informa- of the Freedom of Information/Privacy tion produced in a matching program

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and for providing individuals an oppor- tended. The Data Integrity Board may tunity to contest the findings in ac- extend an agreement for one additional cordance 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 destruction of records used in the pro- [59 FR 37161, July 21, 1994, as amended at 60 FR 57345, Nov. 15, 1995; 64 FR 41291, July 30, gram; 1999] (vii) Prohibitions concerning duplication 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 AUTHORITY: 39 U.S.C. 401; Pub. L. 93–579, 88 agreement. Stat. 1896. (2) Approval. Before the Postal Serv- ice may participate in a computer § 267.1 Purpose and scope. matching program or other computer This part addresses the protection of matching activity that involves both information and records in the custody USPS and non-USPS records, the Data of the Postal Service throughout all Integrity Board must have evaluated phases of information flow and within the proposed match and approved the all organization components, and in- terms of the matching agreement. To cludes micromated, manual and data be effective, the matching agreement processing information. must receive approval by each member of the Board. Votes are collected by the [40 FR 45726, Oct. 2, 1975] USPS Freedom of Information/Privacy Acts Officer. Agreements are signed on § 267.2 Policy. behalf of the Board by the Chairman. If Consistent with the responsibility of a matching agreement is disapproved the Postal Service to make its official by the Board, any party may appeal records available to the public to the the disapproval in writing to the Direc- maximum extent required by the pub- tor, Office of Management and Budget, lic interest, and to ensure the security, Washington, DC 20503–0001, within 30 confidentiality, and integrity of offi- days following the Board’s written dis- cial records containing sensitive or na- approval. tional security information, it is the (3) Effective dates. No matching agree- policy of the Postal Service to main- ment is effective until 40 days after the tain definitive and uniform informa- date on which a copy is sent to Con- tion security safeguards. These safe- gress. The agreement remains in effect guards will have as their purpose: (a) only as long as necessary to accom- Ensuring the effective operation of the plish the specific matching purpose, Postal Service through appropriate but no longer than 18 months, at which controls over critical information, and time the agreement expires unless ex- (b) Protecting personal privacy, the

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public interest, and the national secu- implementing Executive Order 12356 rity 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, [44 FR 51224, Aug. 31, 1979] handling and classification of national security information. § 267.3 Responsibility. (b) Definitions. (1) In this section, Na- (a) Chief Postal Inspector and Freedom tional Security Information means infor- of Information/Privacy Acts Officer. The mation on the national defense and for- Chief Postal Inspector and the Free- eign relations of the United States that dom of Information/Privacy Acts Offi- has been determined under the Execu- cer 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] 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; (3) Information handling and proc- (ii) Chair a committee composed of essing, the Manager, Payroll Accounting and (4) Information dissemination and Records; the Chief Postal Inspector disclosure, (USPS Security Officer); the General (5) Information storage and destruc- Counsel; the Executive Assistant to the tion, Postmaster General; and the Director, (b) Supplementing this list are infor- Operating Policies Office; or their des- mation security standards pertaining ignees, with authority to act on all to the following administrative areas: suggestions and complaints concerning (1) Personnel selection and training, compliance by the Postal Service with (2) Physical environment protection, the regulations in this part; (3) Contingency planning, (iii) Ensure that appropriate and (4) Information processing or storage prompt corrective action is taken system procurement, whenever a postal employee know- (5) Contractual relationships. ingly, willfully and without authoriza- [40 FR 45726, Oct. 2, 1975; 40 FR 48512, Oct. 16, tion: 1975] (A) Discloses national security information properly classified under the § 267.5 National Security Information. Executive order, or prior orders, (a) Purpose and scope. The purpose of (B) Compromises properly classified this section is to provide regulations information through negligence, or

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(C) Violates any provisions of these sitive clearance to postal employees regulations or procedures; having an official ‘‘need to know’’ na- (iv) Establish, staff, and direct ac- tional security information; and tivities for controlling documents con- (v) Report to the Attorney General taining national security information any evidence of possible violations of at USPS Headquarters and to provide federal criminal law by a USPS em- functional direction to the field. ployee and of possible violations by (v) In conjunction with the USPS Se- any other person of those federal crimi- curity Officer, prepare and issue in- nal laws. structions for the control, protection, (3) All postal employees who have ac- and derivative classification of na- cess to national security information tional security information in the cus- shall: tody of, and use by, the Postal Service. (i) Sign a nondisclosure agreement; These instructions shall include re- (ii) Be familiar with and follow all quirements that: (A) A demonstrable need for access to Program regulations and instructions; national security information is estab- (iii) Actively protect and be account- lished before requesting the initiation able for all national security informa- of administrative clearance procedures; tion entrusted to their care; (B) Ensure that the number of people (iv) Disclose national security infor- granted access to national security in- mation only to another individual who formation is reduced to and maintained is authorized access; at the minimum number consistent (v) Immediately report to the Man- with operational requirements and ager, Payroll Accounting and Records needs; and the USPS Security Officer any sus- (vi) Establish, staff and direct activi- pected or actual loss or compromise of ties for controlling documents con- national security information; and taining national security information (vi) Be subject to administrative at USPS Headquarters and provide sanctions should requirements (ii) functional direction to each Regional through (v) not be followed. Records Control Officer; (d) Derivative classification. When ap- (vii) As part of the overall program plying derivative classifications to doc- implementation, develop a training uments created by the Postal Service, program to familiarize appropriate the Postal Service shall: postal employees of the requirements (1) Respect original classification de- for control, protection and classifica- cisions; tion; and (2) Verify the information’s current (viii) Report to the USPS Security level of classification so far as prac- Officer any incidents of possible loss or ticable before applying the markings; compromise of national security infor- and mation. (2) The USPS Security Officer (the (3) Carry forward to any newly cre- Chief Postal Inspector) shall: ated documents the assigned dates or (i) Provide technical guidance to the events for declassification or review Manager, Payroll Accounting and and any additional authorized mark- Records in implementing the national ings in accordance with section 2 of the security information program; Executive order. (ii) Conduct investigations into re- (e) General provisions—(1) Dissemina- ported program violations or loss or tion. National security information re- possible compromise of national secu- ceived by the U.S. Postal Service shall rity information and report any actual not be further disseminated to any loss or compromise to the originating other agency without the consent of agency; the originating agency. (iii) Periodically conduct an audit of (2) Disposal. Classified documents no the USPS national security informa- longer needed by the Postal Service tion program; shall be either properly destroyed or (iv) Process requests for sensitive returned to the originating agency. clearances; conduct the appropriate in- (3) Freedom of Information Act or vestigations and grant or deny a sen- mandatory review requests.

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(i) Requests for classified documents handling it have a legal and ethical ob- made under the Freedom of Informa- ligation to hold it in confidence and to tion Act (FOIA) and mandatory review actively protect it from uses other requests (requests under Section 3–501 than those compatible with the pur- of the Executive Order for the declas- pose for which the information was col- sification and release of information), lected. This obligation is legally im- including requests by the news media, posed by the Privacy Act of 1974, which should be submitted to: Manager, Ad- places specific requirements upon all ministration and FOIA, U.S. Postal Federal agencies, including the Postal Service, 475 L’Enfant Plaza, SW., Wash- Service, and their employees. In imple- ington, DC 20260–5202. mentation of these requirements, the (ii) In response to an FOIA request or following rules of conduct apply: a mandatory review request, the Postal (a) Except as specifically authorized Service shall not refuse to confirm the in § 266.4(b)(2) of this chapter, no em- existence or non–existence of a docu- ployee shall disclose, directly or indi- ment, unless the fact of its existence or rectly, the contents of any record non–existence would itself be classifi- about another individual to any person able. or organization. Managers are to pro- (iii) The Postal Service shall forward vide guidance in this regard to all em- all FOIA and mandatory review re- ployees who must handle such informa- quests for national security information. tion in its custody (including that (b) No employee will maintain a se- within records derivatively classified cret system of records about individ- by the USPS) to the originating agency uals. All records systems containing for review unless the agency objects on personally identifiable information the grounds that its association with about individuals must be reported to the information requires protection. the Freedom of Information/Privacy The requester shall be notified that: Acts Officer. (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, tional security information shall be re- maintained and used for official Postal ferred to the originating agency. Service business. Employees shall be held responsible for any violation of (39 U.S.C. 401 (2), (10), 404(a)(7)) these procedures. [44 FR 51224, Aug. 31, 1979, as amended at 45 [45 FR 44273, July 1, 1980, as amended at 60 FR 30069, May 7, 1980; 49 FR 22476, May 30, FR 57346, Nov. 15, 1995] 1984; 60 FR 57345, 57346, Nov. 15, 1995; 64 FR 41291, July 30, 1999] § 268.2 Consequences of non-compliance. PART 268—PRIVACY OF INFORMA- (a) The Privacy Act authorizes any TION—EMPLOYEE RULES OF individual, whether or not an em- CONDUCT ployee, to bring a civil action in U.S. District Court to obtain judicial review Sec. of the failure of the Postal Service to 268.1 General principles. comply with the requirements of the 268.2 Consequences of non-compliance. Act or its implementing regulations. In AUTHORITY: 39 U.S.C. 401; 5 U.S.C. 552a. certain instances of willful or inten- tional non-compliance, the plaintiff § 268.1 General principles. may recover damages from the Postal In order to conduct its business, the Service in the minimum amount of Postal Service has the need to collect $1,000 together with costs of the action various types of personally identifiable and attorney fees. information about its customers, em- (b) The Act provides criminal sanc- ployees and other individuals. Informa- tions for individuals, including employ- tion of this nature has been entrusted ees, who violate certain of its provi- to the Postal Service, and employees sions.

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(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 (ii) For the payment of money (including money representing grants, PART 273—ADMINISTRATION OF loans, insurance or benefits) if the PROGRAM FRAUD CIVIL REM- United States: EDIES ACT (A) Provided any portion of the money requested or demanded; or Sec. (B) Will reimburse such recipient or 273.1 Purpose. party for any portion of the money 273.2 Definitions. paid on such request or demand; or 273.3 Liability for false claims and statements. (3) Made to the Postal Service which 273.4 Non-exclusivity of penalty authority. has the effect of decreasing an obliga- 273.5 Investigations of alleged violations. tion to pay or account for property, 273.6 Evaluation by reviewing official. services, or money. 273.7 Concurrence of Attorney General. (b) Complaint refers to the adminis- 273.8 Issuance of complaint. trative Complaint served by the Re- 273.9 Collection of civil penalties or assess- viewing Official on a Respondent pur- ments. 273.10 Reports. suant to § 273.8. (c) Investigating Official refers to the AUTHORITY: 31 U.S.C. Chapter 38; 39 U.S.C. Inspector General of the Postal Service 401. or any designee within the United SOURCE: 52 FR 12901, Apr. 20, 1987. States Office of the Inspector General who serves in a position for which the § 273.1 Purpose. rate of basic pay is not less than the This part establishes procedures for minimum rate of basic pay for grade imposing civil penalties and assess- GS–16 under the General Schedule. ments under the Program Fraud Civil (d) Judicial Officer refers to the Judi- Remedies Act of 1986 (codified at 31 cial Officer or Acting Judicial Officer

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of the United States Postal Service or grant, loan, or benefit, or if the Gov- for purposes other than specified in ernment will reimburse such State, po- § 962.21 of this title any designee within litical subdivision, or party for any the Judicial Officer Department. portion of the money or property under (e) Knows or has reason to know, for such contract or for such grant, loan or purposes of establishing liability under benefit. 31 U.S.C. 3802, means that, with respect [52 FR 12901, Apr. 20, 1987, as amended at 56 to a claim or statement, although no FR 55825, Oct. 30, 1991; 67 FR 16024, Apr. 4, proof of specific intent to defraud is re- 2002] quired, a person: (1) Has actual knowledge that the § 273.3 Liability for false claims and claim or statement is false, fictitious, statements. or fraudulent; Section 3802 of title 31, United States (2) Acts in deliberate ignorance of the Code, provides for liability as follows: truth or falsity of the claim or state- (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 (i) Respondent refers to any person al- (C) Is a statement in which the per- leged to be liable for civil penalty or son making, presenting, or submitting assessment under 31 U.S.C. 3802. such statement has a duty to include (j) Reviewing Official refers to the such material fact; or General Counsel of the Postal Service (iv) Is for payment for the provision or any designee within the Law Depart- of property or services which the per- ment who serves in a position for son has not provided as claimed which the rate of basic pay is not less Shall be subject to, in addition to any than the minimum rate of basic pay for other remedy that may be prescribed grade GS–16 under the General Sched- by law, a civil penalty of not more ule. than $5,500 for each such claim. (k) Statement means any representa- (2) Each voucher, invoice, claim tion, certification, affirmation, docu- form, or other individual request or de- ment, record, or accounting or book- mand for property, services, or money keeping entry made: constitutes a separate claim. (1) With respect to a claim or to ob- (3) A claim shall be considered made, tain the approval or payment of a presented, or submitted to the Postal claim (including relating to eligibility Service, recipient, or party when such to make a claim); or claim is actually made to an agent, fis- (2) With respect to (including relat- cal intermediary, or other entity, ining to eligibility for)— cluding any State or political subdivi- (i) A contract with, or a bid or pro- sion thereof, acting for or on behalf of posal for a contract with; or the Postal Service, recipient, or party. (ii) A grant, loan, or benefit from, the (4) Each claim for property, services, Postal Service, or any State, political or money is subject to the civil penalty subdivision of a State, or other party, referred to in paragraph (a)(1) of this if the United States Government pro- section regardless of whether such vides any portion of the money or prop- property, service, or money is actually erty under such contract or for such delivered or paid.

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(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 vio- [52 FR 12901, Apr. 20, 1987, as amended at 56 lation of paragraph (a)(1) of this sec- 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 Shall be subject to, in addition to any enter into contracts with the Postal other remedy that may be prescribed Service, a determination referred to in by law, a civil penalty of not more paragraph (a) of this section shall not than $5,500 for each such statement. be considered as a conclusive deter- (2) Each written representation, cer- mination of such person’s responsi- tification, or affirmation constitutes a bility pursuant to Postal Service pro- separate statement. curement regulations. (3) A statement shall be considered made, presented, or submitted to the § 273.5 Investigations of alleged viola- Postal Service when such statement is tions. actually made to an agent, fiscal inter- (a) Investigations of allegations of li- mediary, or other entity, including any ability under 31 U.S.C. 3802 shall be State or political subdivision thereof, conducted by the Investigating Offi- acting for or on behalf of the Postal cial. Service. (b)(1) For purposes of an investiga- (c) In any case in which it is deter- tion under this part, the Investigating mined that more than one person is lia- Official may issue a subpoena requiring ble for making a claim or statement the production of all information, doc- under this section, the civil penalty re- uments, reports, answers, records, ac- ferred to in paragraph (a)(1) of this sec- counts, papers, and data not otherwise tion may be imposed on each such per- reasonably available to the Postal son without regard to the amount of Service. Any subpoena issued by the any penalties collected or demanded Investigating Official under this au- from others. thority shall cite 31 U.S.C. 3804(a) as (d) In any case in which it is deter- the authority under which it is issued, mined that more than one person is lia- shall be signed by the Investigating Of- ble for making a claim under this sec- ficial, and shall command each person tion on which the Government has to whom it is directed to produce the made payment, an assessment may be specified documentary material at a imposed against any such person or prescribed time and place.

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(2) In the case of contumacy or re- § 273.6 Evaluation by reviewing offi- fusal to obey a subpoena issued pursu- cial. ant to paragraph (b)(1) of this section, (a) Based upon the investigatory re- the district courts of the United States port prepared by the Investigating have jursidiction to issue an appro- Offical, the Reviewing Official shall de- priate order for the enforcement of termine whether there is adequate evi- such subpoena. Any failure to obey dence to believe that a person is liable such order of the court may be punish- under 31 U.S.C. 3802, and , if so, wheth- able as contempt. In any case in which er prosecution would likely result in the Postal Service seeks the enforce- the imposition and collection of civil ment of a subpoena under this section, penalties and applicable assessments. the Postal Service shall request the At- (b) If the Reviewing Offical deter- torney General to petition the district mines that a case has merit and should court for the district in which the per- be referred to the Judicial Officer for son receiving the subpoena resides or assignment to a Presiding Officer, he conducts business to issue such an must first transmit to the Attorney order. General a written notice containing (c) Upon completing an investigation the following information: under this part, the Investigating Offi- (1) A statement setting forth the Re- cial shall submit to the Reviewing Offi- viewing Official’s reasons for proposing cial a report containing the findings to refer the case to a Presiding Officer; and conclusions of his investigation, (2) A description of the claims or including: statements for which liability under 31 (1) A description of the claims or U.S.C. 3802 is alleged; statements for which liability under 31 (3) A statement specifying the evi- U.S.C. 3802 is alleged; dence that supports the allegations of (2) A description of any evidence liability; which supports allegations of liability (4) An estimate of the amount of under 31 U.S.C. 3802, or where applica- money or the value of property or serv- ble, a description of any evidence that ices allegedly requested or demanded tends to support a conclusion that such in violation of 31 U.S.C. 3802; statute has not been violated; (5) A statement of any exculpatory or (3) An estimate of the amount of mitigating circumstances which may money or the value of property or serv- relate to the claims or statements ices allegedly requested or demanded under investigation; in violation of 31 U.S.C. 3802; (6) A statement of the amount of pen- (4) A statement of any exculpatory or alties and assessments that, consid- mitigating circumstances which may ering the factors listed in paragraphs relate to the claims or statements (b)(4) and (5) of this section, the Re- under investigation; viewing Official recommends be de- (5) A statement of the amount of pen- manded from the person alleged to be alties and assessments that, consid- liable; and (7) A statement that, in the opinion ering the information described in of the Reviewing Official, there is a paragraphs (c) (3) and (4) of this sec- reasonable prospect of collecting the tion, the Investigating Official rec- amount specified in paragraph (b)(6) of ommends be demanded from the person this section and the reasons supporting alleged to be liable; and such statement. (6) An estimate of the prospects of (c) No allegations of liability under collecting the amount specified in 31 U.S.C. 3802 with respect to any claim paragraph (c)(5) of this section, and made, presented, or submitted by any any reasons supporting such estimate. person shall be referred to the Judicial (d) Nothing in these regulations Officer if the Reviewing Official deter- modifies any responsibility of the In- mines that (1) an amount of money in vestigating Official to report violations excess of $150,000; or (2) property or of criminal law to the Attorney Gen- service with a value in excess of eral $150,000 is requested or demanded in [52 FR 12901, Apr. 20, 1987, as amended at 56 violation of section 3802 in such claim FR 55825, Oct. 30, 1991] or in a group of related claims which

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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 Officier, 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 ing that the continuation of any pro- her agent, a written acknowledgment ceeding under the Program Fraud Civil of receipt, showing the date and time Remedies Act with respect to a claim of such receipt. If the person upon or statement may adversely affect any whom service is made declines to ac- pending or potential criminal or civil knowledge receipt, the person effecting action related to such claim or state- service shall execute a statement, indi- ment, such proceeding shall be imme- cating the time, place and manner of diately stayed and may be resumed service, which shall constitute evi- only upon written authorization of the dence of service. Attorney General. [52 FR 12901, Apr. 20, 1987, as amended at 56 § 273.8 Issuance of complaint. FR 55825, Oct. 30, 1991] (a) If the Attorney General or his designee approves the referral of alle- § 273.9 Collection of civil penalties or gations of liability to the Judicial Offi- assessments. cer, the Reviewing Official shall serve (a) Any penalty or assessment im- on the Respondent, pursuant to para- posed under the Program Fraud Civil graph (b) of this section, a Complaint, Remedies Act may be recovered in a which: civil action brought by the Attorney (1) Specifies the allegations of liabil- General. In any such action, no matter ity against the Respondent, including that was raised or that could have been the statutory basis for liability; raised in a hearing conducted under (2) Identifies the claims or state- part 962 of this title or pursuant to ju- ments that are the basis for the alleged dicial review under 31 U.S.C. 3805 may liability, and the reasons why liability be raised as a defense and the deter- allegedly arises from such claims or mination of liability and the deter- statements; mination of amounts of penalties and (3) Specifies the amount of penalties assessments shall not be subject to re- or assessments the Postal Service view. A civil action to recover a pen- seeks to impose; alty or assessment shall be commenced (4) Informs the Respondent of his within three years after the date on right to request an oral hearing before, which the determination of liability

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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 (a) Not later than October 31 of each FR 2179, Jan. 10, 1975] year, the Postmaster General shall prepare and transmit to the appropriate § 281.2 Action required by processing committees and subcommittees of the postal officials. Congress an annual report summa- Postal officials processing salvable rizing actions taken under the Pro- mail recovered from the scene of an ac- gram Fraud Civil Remedies Act during cident or catastrophe are responsible the most recent 12-month period end- for giving timely notification of the ining the previous September 30. cident to the sectional center director (b) The report referred to in para- of customer services at the office of graph (a) of this section shall include mailing. The notification should in- the following information for the pe- clude, but not be limited to: riod covered by the report: (a) The determinable names of the (1) A summary of matters referred by major mailers involved; the Investigating Official to the Re- (b) The nature and extent of damage viewing Official under this part; or destruction; (2) A summary of matters trans- (c) Anticipated delivery delay; and mitted to the Attorney General under (d) If known, the shipment delivery this part; destination(s). (3) A summary of all hearings conducted by a Presiding Officer under [39 FR 20974, June 17, 1974, as amended at 40 part 962 of this title, and the results of FR 2179, Jan. 10, 1975] such hearings; and § 281.3 Postal inspector responsibil- (4) A summary of the actions taken ities. during the reporting period to collect any civil penalty or assessment im- The postal inspector investigating posed under the Program Fraud Civil the incident should assure that the Remedies Act. processing postal officials are fulfilling their notification responsibilities on a timely basis. Should the situation arise Damage to or Destruction of Firm where no postal officials are involved Mailings in processing affected mail, then the investigating postal inspector will take PART 281—FIRM MAILINGS DAM- necessary action to insure that appro- AGED OR DESTROYED THROUGH priate notification is made. TRANSPORTATION ACCIDENTS [39 FR 20974, June 17, 1974] OR CATASTROPHES § 281.4 Disclaimer. Sec. The Postal Service will not be liable 281.1 Notification of firm mailers. 281.2 Action required by processing postal in damages for any loss occasioned by officials. any failure to notify firm mailers in 281.3 Postal inspector responsibilities. accordance with this part of damage to 281.4 Disclaimer. or destruction of firm mailings.

AUTHORITY: 39 U.S.C. 401, 403, and 404. [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 unless an place where they will be consolidated appeal is taken to the Judicial Officer or otherwise utilized does not fall with- Department in accordance with rules of in this exception even though they will procedure set out in part 959 of this subsequently enter the mail stream. chapter. (2) Examples of permitted activities (c) Refusal to pay an unappealed de- are the pickup and carriage of letters mand or a demand that becomes final which are delivered to post offices for after appeal will subject the violator to mailing; the pickup and carriage of let- civil suit by the Postal Service to col- ters at post offices for delivery to ad- lect the amount equal to postage. dressees; and the bulk shipment of in- (d) The payment of amounts equal to dividually addressed letters ultimately postage on violation shall in no way carried by the Postal Service. limit other actions to enforce the Pri- (3) The private carriage of letters vate Express Statutes by civil or crimi- from branches of an organization to a nal proceedings. location for preparation for mailing does not constitute a consolidation. § 310.6 Advisory opinions. The private carriage of letters from an An advisory opinion on any question organization’s point of mail delivery to arising under this part and part 320 of its branches in the locality does not this chapter may be obtained by writ- constitute a separation. ing the Law Department, U.S. Postal [39 FR 33211, Sept. 16, 1974, as amended at 44 Service, Washington, DC 20260. A num- FR 52834, Sept. 11, 1979; 45 FR 59873, Sept. 11, bered series of advisory opinions is 1980] available for inspection by the public in the Library of the U.S. Postal Serv- § 310.4 Responsibility of carriers. ice, and copies of individual opinions may be obtained upon payment of Private carriers are cautioned to charges for duplicating services. make sure that their carriage of matter is lawful within the definition, ex- [45 FR 59873, Sept. 11, 1980] ceptions, suspension, and conditions contained in this part and in part 320 of § 310.7 Amendment of regulations. this chapter. They should take reason- Amendments of the regulations in able measures to inform their cus- this part and in part 320 may be made tomers of the contents of these regula- only in accordance with the rule- tions so that only proper matter is ten- making provisions of the Administra- dered to them for carriage. Carriers tive Procedure Act. should desist from carrying any matter when the form of shipment, identity of [40 FR 23295, May 29, 1975] sender or recipient, or any other information reasonably accessible to them PART 320—SUSPENSION OF THE indicates that matter tendered to them PRIVATE EXPRESS STATUTES for carriage is not proper under these regulations. Sec. 320.1 Definitions. § 310.5 Payment of postage on viola- 320.2 Suspension for certain data processing tion. materials. (a) Upon discovery of activity made 320.3 Operations under suspension for cer- unlawful by the Private Express Stat- tain data processing materials. 320.4 Suspension for certain letters of col- utes, the Postal Service may require lege and university organizations. any person or persons who engage in, 320.5 Suspension for certain international- cause, or assist such activity to pay an ocean carrier-related documents. amount or amounts not exceeding the 320.6 Suspension for extremely urgent let- total postage to which it would have ters.

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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 suspensions. ing the data processing center nor data 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, § 320.1 Definitions. (1) ‘‘addressee’s next business day’’ means the first calendar day, stated in The definitions in § 310.1 apply to part his local time, on which he conducts 1 320 as well. 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 Pri- mestic point and a foreign point shall vate Express Liaison Officer, Customer be deemed to begin at the time mate- Services Department, U.S. Postal Serv- rials of foreign origin are received at ice, Washington, DC 20260, of their in- the international gateway city or end tention to establish such operations at the time materials of domestic ori- not later than the beginning of such operations. Such notification, on a 1 Several of the items enumerated in form available from the Private Ex- § 310.1(a)(7) do not self-evidently lie outside press Liaison Office, shall include in- of the definition of ‘‘letter’’. To the extent, formation on the identity and author- however, that there is any question whether ity of the carrier and the scope of its these items may properly be excluded by definition, the Postal Service has determined proposed operations. by adoption of these regulations that the re- (b) Carriers operating under the sus- strictions of the Private Express Statutes pension granted pursuant to § 320.2 are are suspended pursuant to 39 U.S.C. 601(b). responsible for making sure that their

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carriage of matter under the suspen- Geographical Area to Be Served llllll sion meets all conditions contained in 1. Designate the specific markets or areas § 320.2. (See § 310.4.) The containers or in which operations will be conducted. covers of any matter carried under the 2. Describe specifically any authorizations suspension must be made available for issued by local, state, or federal regulatory examination upon request by a prop- agencies under which operations will be con- erly identified postal inspector. Carrier ducted. records—either in the form of nota- (Signature of Officer) tions on the containers or covers of (Name and Title) any matter carried under the suspension granted pursuant to § 320.2 or in Subscribed and sworn to before me this the form of records kept by employees ll day of lllll, 197ll. of the actual times they make delivery Notary Public or pickup stops—must be sufficient to Seal show that the delivery of such matter was completed within the applicable My commission expires —————————— time limitation prescribed in § 320.2. (NOTE: False statements contained herein The provisions of this paragraph shall are punishable by law, 18 U.S.C. 1001.) not restrict the Postal Service in the [39 FR 33212, Sept. 16, 1974; 39 FR 34533, Sept. exercise of search powers conferred 26, 1974, as amended at 40 FR 23295, May 29, upon it by law. 1975; 44 FR 52835, Sept. 11, 1979] (c) The filing of notifications under this section does not relieve the oper- § 320.4 Suspension for certain letters ator of responsibility for assuring that of college and university organiza- its operations conform to applicable tions. statutes and regulations. The operation of 39 U.S.C. 601(a) (1) (d) Failure to comply with the notifi- through (6) and § 310.2(b) (1) through (6) cation requirements of this section and of this chapter is suspended on all post carriage of material or other action in routes to permit colleges and univer- violation of other provisions of this sities to carry in their internal mail part and of part 310 are grounds for ad- systems the letters of their bona fide ministrative revocation of the suspen- student or faculty organizations to sion as to a particular carrier for a pe- campus destinations. This suspension riod of not less than one year, in a pro- does not cover the letters of faculty ceeding instituted by the General members, students, or organizations Counsel, following a hearing by the Ju- other than bona fide student or faculty dicial Officer Department in accord- organizations of the carrying college or ance with the rules of procedure set university. Colleges and universities out in part 959 of this chapter. choosing to provide their student or NOTE: The form referred to in § 320.3 is re- faculty organizations access to their produced below. internal mail systems are responsible for assuring that only letters of bona NOTICE OF INTENT TO ESTABLISH OPER- fide student or faculty organizations ATIONS UNDER SUSPENSION OF THE addressed to campus destinations are 1 PRIVATE EXPRESS STATUTES carried. (See § 310.4.) For purposes of (SEE 39 CFR PART 320, SUSPENSION OF THE this suspension, ‘‘internal mail sys- PRIVATE EXPRESS STATUTES) tems’’ are those which carry letters on, between, and among the various cam- Private Carriage of Letters puses of a single college or university and which operate in accordance with Name of Carrier lllllllllllllll the Letters of the carrier exception in 39 Address lllllllllllllllllll CFR 310.3(b). State of Incorporation lllllllllll [44 FR 52835, Sept 11, 1979]

1 Information relates exclusively to oper- § 320.5 Suspension for certain inter- ations under the suspension for data proc- national-ocean carrier-related docu- essing materials. This form should be used ments. for an initial notice of operations and for any amendments to the initial or subsequent The operation of 39 U.S.C. 601(a) (1) notices. through (6) and § 310.2(b) (1) through (6)

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of this chapter is suspended on all post into the 48 contiguous states are routes for documents, sent by a shipper deemed ‘‘dispatched’’ when they are in or an ocean carrier from a foreign ori- the custody of the domestic carrier, gin to a United States ocean-carrier having been passed by United States port city destination or from a United Customs, if applicable, at the letters’ States ocean-carrier port city origin to point of arrival in the 48 contiguous a foreign destination, that would be ex- states. cepted under § 310.3(a) if the documents (3) Except as provided in this para- accompanied the cargo. This suspen- graph (b)(3), the times and time limits sion covers only shipments to or from specified in paragraph (b)(1) of this sec- ports where the cargo to which the doc- tion are not applicable to any locations uments relate is actually loaded on, or outside the 48 contiguous states. The unloaded from, an ocean vessel. For times and time limits specified in para- purposes of this suspension ‘‘foreign graph (b)(1) of this section are applica- origins’’ or ‘‘foreign destinations’’ ble to letters dispatched and delivered means origins or destinations outside wholly within Alaska, Hawaii, Puerto the contiguous 48 states. Rico or a territory or possession of the [44 FR 52835, Sept 11, 1979] United States. The regulations provided in paragraph (b)(2) of this section § 320.6 Suspension for extremely ur- relating to the delivery and dispatch of gent letters. letters are applicable by analogy to (a) The operation of 39 U.S.C. 601(a) letters shipped between these jurisdic- (1) through (6) and § 310.2(b) (1) through tions and other nations. (6) of this chapter is suspended on all (c) It will be conclusively presumed post routes for extremely urgent let- that a letter is extremely urgent and is ters if the conditions of either para- covered by the suspension if the graph (b) or (c) of this section, and of amount paid for private carriage of the the other paragraphs of this section, letter is at least three dollars or twice are met. the applicable U.S. postage for First- (b)(1) For letters dispatched within 50 Class Mail (including priority mail) miles of the intended destination, delivery 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. (2) Letters sent from the 48 contig- (d) The sender must prominently uous states of the United States to mark the outside covers or containers other jurisdictions of the United States of letters carried under this suspension or to other nations are deemed ‘‘deliv- with the words ‘‘Extremely Urgent’’ or ered’’ when they are in the custody of ‘‘Private Carriage Authorized by Post- the international or overseas carrier at al Regulations (39 CFR 320.6)’’ or with a its last scheduled point of departure similar legend identifying the letters from the 48 contiguous states. Letters as carried pursuant to this suspension. sent from other jurisdictions of the In addition, each outside container or United States or from other nations cover must show the name and address

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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 distrib- ried under this suspension, or in the utes memoranda advising the local precinct 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 carrier for a period of one year in a not qualify under the test set out in paragraph (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 Postal Inspection Service for the pur- HMO’s central office as the need arises for 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 this suspension as to a shipper or car- business day or whether their transmission 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. istrative proceedings for collection of Example (5). On Sunday, Tuesday, and postage (see § 310.5) or by civil or crimi- Thursday evenings, the central office of a re- nal proceedings. gional grocery store chain sends out to its (f) The following examples illustrate various stores in the area inventory bul- the application of this suspension. letins prepared over the previous 24 hours showing the current availability and prices Example (1). The headquarters of a city po- of meat, produce, dairy products, lice department each night compiles a list of breadstuffs, frozen foods and similar items. the license plate numbers and descriptions of Early the following afternoon, each store automobiles reported stolen within the met- must send these inventory bulletins back to ropolitan area during the previous 24 hours. the central office with a notation of the

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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 distributed to the branches on a daily basis in order (a) The operation of 39 U.S.C. 601(a) for the bank to avoid the risk of serious fi- (1) through (6) and § 310.2(b) (1) through nancial loss. Within three hours of their re- (6) of this chapter is suspended on all ceipt 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 qualify under the test set out in paragraph (1) The advertisements must not be (b) of this section. marked with the names or addresses of Example (8). The field office of an insurance the intended recipients. company daily sends the insurance applica- (2) The advertisements must be inci- tions 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 company. Few if any policies have been canceled the shipment of the accompanying by the company within 48 hours of their re- merchandise or the periodical when the ceipt at the central office, though the com- merchandise or the periodical has been pany normally begins processing the applica- ordered by or would otherwise be sent tions soon after their receipt. Nothing sub- to the recipient even without the ac- stantial turns on whether these bound appli- companying advertisement. cations arrive within 12 hours or by noon of (ii) Notwithstanding § 320.7(a)(2)(i), an the next business day or whether their transmission takes a day or more longer to com- advertisement is not incidental to the plete. The private carriage of these mate- merchandise when the pertinent cir- rials would not qualify under the test set out cumstances, such as the nominal value in paragraph (b) of this section. of the merchandise, its shipment on an Example (9). An organization of real estate unsolicited basis, or its status as a brokers in a community issues periodic bul- sample, reasonably indicate that the letins containing information about prop- shipper’s primary purpose is the con- erties which have been listed for sale by the veyance of the advertisement itself and constituent brokers. Each broker is entitled to show the properties to prospective buyers. that the merchandise is merely an ad- In order to provide each broker with sub- junct to the advertisement. stantially equal opportunity to secure a (b) An item is an advertisement if its buyer, it is necessary that the bulletins be primary purpose is to cause or induce

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the purchase of goods or services from some to persons in the United States. The the shipper or others. suspension for international remailing does not apply to the letters addressed to persons [45 FR 59874, Sept. 11, 1980] in the United States. § 320.8 Suspension for international (c) Violation by a shipper or carrier remailing. of the terms of this suspension is (a) The operation of 39 U.S.C. 601(a)(1) grounds for administrative revocation through (6) and § 310.2(b)(1) through (6) of the suspension as to such shipper or of this chapter is suspended on all post carrier for a period of one year in a routes to permit the uninterrupted car- proceeding instituted by the General riage of letters from a point within the Counsel in accordance with part 959 of United States to a foreign country for this chapter. The failure of a shipper or deposit in its domestic or international carrier to cooperate with an inspection mails for delivery to an ultimate des- or audit authorized and conducted by tination outside the United States. the Postal Inspection Service for the purpose of determining compliance Example (1). The letters to overseas customers of commercial firm A in Chicago are with the terms of this suspension shall carried by Carrier B to New York where they be deemed to create a presumption of a are delivered to Carrier C for carriage to Eu- violation for the purpose of this para- rope. Carrier C holds the letters in its dis- graph (c) and shall shift to the shipper tribution center overnight, then sorts them or carrier the burden of establishing by country of destination and merges them the fact of compliance. Revocation of with letters of other firms to those countries this suspension as to a shipper or car- before starting the carriage to Europe in the morning. The carriage of firm A’s letters is rier shall in no way limit other actions not interrupted. The suspension for inter- as to such shipper or carrier to enforce national remailing applies to the carriage by the Private Express Statutes by admin- Carrier B and by Carrier C. istrative proceedings for collection of Example (2). The bills addressed to foreign postage (see § 310.5) or by civil or crimi- customers of the Chicago branch office of nal proceedings. commercial firm D are carried by Carrier E to New York where they are delivered to the [51 FR 29638, Aug. 20, 1986] accounting department of firm D’s home office. The accounting department uses the in- § 320.9 Revocation or amendment of formation in the bills to prepare its reports suspensions. of accounts receivable. The bills are then returned to Carrier E which carries them di- These suspensions may be revoked or rectly to Europe where they are entered into amended in accordance with § 310.7. No the mails of a foreign country. The carriage revocation of the suspension provided of the bills from Chicago to Europe is inter- in § 320.2 will curtail operations of par- rupted in New York by the delivery to firm ticular carriers existing at the time of D’s home office. The suspension for inter- the revocation to a level of operations national remailing does not apply to the carriage from Chicago to New York. It does (in dollar or volume terms, whichever apply to the subsequent carriage from New is larger) lower than that antedating York to Europe. the revocation in a particular market served prior to the revocation. Should (b) This suspension shall not permit the suspension referred to in § 320.2 be the shipment or carriage of a letter or letters out of the mails to any foreign revoked, carriers, as a condition to country for subsequent delivery to an continuing operations under this sec- address within the United States. tion, will be required to provide reasonably complete and accurate data to Example (1). A number of promotional let- support estimates of past operating ters originated by firm F in Los Angeles are levels in particular markets. carried by Carrier G to Europe for deposit in the mails of a foreign country. Some of the [44 FR 52835, Sept. 11, 1979. Redesignated at letters are addressed to persons in Europe, 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 employee shall drink intoxicating bev- available to the Associate Ethical Con- erages in a public place while in uni- duct Officers, and render final rulings form. Unless the Postmaster General on behalf of the Postal Service in ap- specifically authorizes an exception (as peals by employees from rulings under in the case, for example, of an official the Standards and Supplemental Regu- reception) no employee shall have or lations made by an agency designee. bring any container of beer, wine, or The Ethical Conduct Officer shall pro- other intoxicating beverage on prem- vide advice and guidance for the Post- ises occupied by a postal facility, master General and all Associate Eth- whether or not the container has been ical Conduct Officers concerning ques- opened. tions arising under the Standards and (f) Illegal use of drugs may be Supplemental Regulations. The Ethical grounds for removal from the Postal Conduct Officer may delegate to an As- Service. sistant Ethical Conduct Officer author- (g) No employee while on property ity to perform any duty or function owned or leased by the Postal Service vested in him or her by this Section. or the United States or while on duty, The General Counsel is the Ethical shall participate in any gambling ac- Conduct Officer of the Postal Service tivity, including the operation of a and the Designated Agency Ethics Offi- gambling device, in conducting or act- cial for purposes of the Ethics in Gov- ing as an agent for a lottery or pool, in ernment Act, as amended, and imple- conducting a game for money or prop- menting regulations of the Office of erty, or in selling or purchasing a num- Government Ethics, including 5 CFR bers slip or ticket. part 2638. NOTE: Paragraph (g) of this section does (b) The Deputy Postmaster General not prohibit participation in activities specified herein if participation is necessitated by is the Associate Ethical Conduct Offi- an employee’s law enforcement duties, or if cer for the Office of the Postmaster participation is in accordance with section 3 General and the Office of the Deputy of Executive Order No. 10927, of March 18, Postmaster General. The Chief Oper- 1961, relating to agency-approved solicita- ating Officer, Senior Vice Presidents, tions. Vice Presidents, and such other per- [39 FR 1990, Jan. 16, 1974; 39 FR 3677, Jan. 28, sons as the Ethical Conduct Officer 1974, as amended at 48 FR 48231, Oct. 18, 1983. may designate are Associate Ethical Redesignated and amended at 60 FR 47244, Conduct Officers for their respective Sept. 11, 1995]

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organizational elements. Each Asso- § 447.32 Post-employment activities. ciate Ethical Conduct Officer shall des- (a) Restrictions on the post-employ- ignate a suitable employee to coordi- ment activities of persons who have nate the ethics program within his or been employed by the Postal Service her organization and to act as liaison are imposed by 18 U.S.C. 207. The Eth- with the Ethical Conduct Officer. Each ics Reform Act of 1989 includes amend- Associate may designate other suitable ments to 18 U.S.C. 207, which became employees to assist or act for him or effective January 1, 1991. Employees her and shall ensure that there is an who terminated their employment adequate number of Qualified Ethics prior to January 1, 1991, are subject to Trainers to comply with the require- the restrictions imposed under 18 ments of the annual ethics training U.S.C. 207 in effect prior to that date, program. while all other employees are subject (c) The Ethical Conduct Officer and, to the restrictions imposed under 18 with his or her approval, Associate U.S.C. 207 as amended. Ethical Conduct Officers, may delegate (b) The Office of Government Ethics to additional persons or classes of per- has issued regulations, contained in 5 sons the authority to make determina- CFR part 2637, that implement 18 U.S.C. 207 as in effect prior to January tions, to give approval, or to take 1, 1991. Employees who terminated other action in accordance with the their employment with the Postal Standards of Ethical Conduct, as is Service prior to January 1, 1991, may contemplated by 5 CFR 2635.102(b), de- refer to 5 CFR part 2637 for guidance fining ‘‘agency designee.’’ concerning applicable post-employ- (d) An employee may obtain advice ment restrictions, and further guidance and guidance on questions of conflicts may be obtained in accordance with of interest from the Ethical Conduct § 447.31 of this part. 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 rul- Subpart D—Political Activities ing provided for by the Standards and Supplemental Regulations by submit- § 447.41 General. ting a request in writing to the Senior (a) Postal Service employees, except Counsel, Ethics, or, in the field, to the those mentioned in paragraph (b) of Chief Field Counsel or Deputy Chief this section, are subject, at all times to Field Counsel, General Law. restrictions on their participation in (f) An employee may appeal to the political activity (5 U.S.C. subchapter Ethical Conduct Officer from a ruling III of chapter 73, and 18 U.S.C. 602, 603, made by an agency designee concerning and 607), and to the regulations issued matters covered by the Standards and by the Office of Personnel Management Supplemental Regulations within 30 relating thereto. days from the date of the ruling. The (b) Those Postal Service employees appeal must be in writing and must who are employed on an irregular or contain a full statement of the rel- occasional basis; e.g., experts and con- evant facts. It should be addressed to sultants, substitute rural carriers, oth- the Ethical Conduct Officer, U.S. Post- ers on a per diem basis, and without al Service, Washington, DC 20260, and a compensation or when actually em- copy thereof should be sent to the offi- ployed employees, are subject to the restrictions mentioned in paragraph (a) cial whose ruling is being appealed. of this section only while in an active [60 FR 47244, Sept. 11, 1995] duty status and only for the entire 24

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hours of any day of actual employing in this section shall prevent an em- ment. Notwithstanding this paragraph, ployee from serving as an official of a full-time employees in a leave status religious or fraternal organization or of and part-time employees are fully sub- a civil nonpolitical organization which ject to the restrictions of paragraph (a) is supported by dues or contributions of this section. from its own members. [39 FR 1990, Jan. 16, 1974, as amended at 48 [39 FR 1990, Jan. 16, 1974. Redesignated at 60 FR 48231, Oct. 18, 1983. Redesignated at 60 FR FR 47245, Sept. 11, 1995] 47245, Sept. 11, 1995] § 447.52 Holding of State or local office § 447.42 Additional prohibited political by Postal Service employees. activities. (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- has no language in the nature of polit- tor received votes in the last preceding ical campaigning; election at which presidential electors (2) Wear a political badge or button were selected. while in uniform or while on duty when (b) An employee who wishes to seek, that duty requires him to deal with the accept, or hold a nonpartisan State or public or be in the view of the public; local office is responsible for (3) Display a political picture or ascertaining: sticker on his private vehicle while (1) Whether the office is ‘‘non- that vehicle is being used for official partisan’’ within the definition in postal purposes. § 447.62(a). [39 FR 1990, Jan. 16, 1974. Redesignated at 60 (2) Whether State or local law per- FR 47245, Sept. 11, 1995] mits a Postal Service employee to seek, accept, or hold the particular of- § 447.43 Investigation and enforce- fice. ment. (3) Whether the duties of the office The Office of the Special Counsel and would result in a conflict with his the Merit Systems Protection Board Postal Service employment. investigate and adjudicate allegations (4) Whether the discharge of the du- of political activity in violation of the ties of the office would interfere with regulations of the Office of Personnel the performance by the particular em- Management by Postal Service employee of his Postal Service duties in ployees. For jurisdiction in such a case, an acceptable manner or would inter- see 5 CFR 734.102 and part 1201. fere with the performance by other [60 FR 47245, Sept. 11, 1995] Postal Service employees of their respective duties in an acceptable man- Subpart E—Participation in ner. Community Affairs (c) An employee is encouraged to seek advice from his Associate Ethical § 447.51 General. Conduct Counselor prior to taking any An employee is permitted to partici- action to seek, accept, or hold a State pate in community affairs to the ex- or local office. If, after the employee tent consistent with the proper per- has entered upon the discharge of the formance of his postal duties and with duties of this non-postal office, his applicable laws and regulations. Noth- non-postal duties interfere with the

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proper discharge of postal duties, ei- or attempt to induce the employee to ther by him or by other postal employ- act or neglect to act in regard to his of- ees, the employee holding the non-post- ficial responsibilities; and al office shall be advised by his supe- (2) Any information that causes him rior to eliminate the interference, ei- to believe that there has been a viola- ther by resignation from the non-post- tion of a Federal criminal statute or al office, or in such other manner as is any law or regulation directly or indi- appropriate under the circumstances. If rectly related to the responsibilities of the employee fails, refuses, or neglects the Postal Service. A copy of a report to comply with the foregoing advice made under this paragraph shall also and the interference continues, he will be sent by the employee to the Chief be subject to disciplinary proceedings. Postal Inspector, Washington, DC (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: PART 491—GARNISHMENT OF SAL- (1) The criteria in paragraphs (b) (1) 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,

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or possession, or the order of a court of changed, mail may be forwarded from competent jurisdiction of any state, his last published address to his new of- territory, or possession (including any ficial address until such time as these order for child support and alimony or regulations are amended to reflect the bankruptcy). The Authorized Agent new address. may not receive or transmit service of process in a private legal matter on be- § 491.3 Sufficient legal form. half of an employee. No process shall No document purporting to garnish be effectively served until it is received employee wages shall be deemed suffi- by the Authorized Agent or his des- cient unless it can be determined from ignee. No other employee shall have the face of the document that it is the authority to accept service of such legal process in the nature of garnish- 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

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held pending receipt of further infor- (b) The requirements of paragraph (a) mation and must be served again when of this section are illustrated by the the proper information is obtained. following example: Example: Each periodic check with the ac- § 491.5 Costs. companying Financial Institution State- The Postal Service’s administrative ment shall be considered to be a legally suf- costs in executing the garnishment ac- ficient answer. Where legal process has been processed but no money was deducted, (for tion shall be added to each garnish- the reason of insufficient pay, prior garnishment and the costs recovered shall be ment in force, etc.) the mailing label or retained as offsetting collections. The other written response shall be a sufficient Postal Service reserves the right to re- answer. Where the Postal Service sends a determine the administrative cost of check or mailing label, no further action will any garnishment if, in administering be required (such as a cumulative report or notarized statement.) Documents which are any garnishment, extra costs beyond defective with respect to service, lack of those normally encountered are in- legal sufficiency, failure to properly identify curred, and add the extra cost to each the employee, or other reason, do not require garnishment. The extra costs recovered a response or an answer but if the Postal shall be retained as offsetting collec- Service chooses to act in any way, such as to tions. return the document, that act shall be a sufficient answer.

§ 491.6 Response to process. § 491.7 Release of information. (a) Within fifteen days after receipt (a) No employee whose duties include of process that is sufficient for legal responding to interrogatories to gar- form and contains sufficient informa- nishments shall release information in tion to identify the employee, the Au- response to a garnishment until it is thorized Agent shall send written no- determined that sufficient informa- tice that garnishment process has been tion, as required in § 491.4, has been reserved, together with a copy thereof, to ceived in writing as part of the gar- the affected employee at his or her nishment legal process. The Authorized duty station or last known address. Agent may, at his or her sole discre- The Authorized Agent shall respond, in tion, accept or initiate telephone or writing, to the garnishment or inter- telefax inquiries concerning garnish- rogatories within thirty days of receipt ments. No other employee may release of process. The Authorized Agent may any information about employees ex- respond within a longer period of time cept in conformity with the Privacy as may be prescribed by applicable Act of 1974, 5 U.S.C. 552a, and the regulations 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

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the order of receipt of process which is ice withhold up to a specific total sufficient as to legal form and contains amount of money, the Postal Service sufficient information for identifica- will not calculate interest, charges, or tion of the employee, the Authorized any variable in processing a garnish- Agent’s date and time stamp shall be ment. The Postal Service may continue conclusive evidence. Child support and processing a garnishment if the gar- alimony garnishments will be accorded nishing attorney provides the adjusted priority over commercial garnishments total including the additional money under 5 U.S.C. 5520a as provided in 5 owed, as determined from his calcula- U.S.C. 5520a(h)(2). Garnishments shall tion of the variable amounts. The at- be executed provided that the pay cycle torney is deemed to certify on his pro- is open for input or, if closed, will be fessional responsibility that the cal- held until the next cycle. In no event culations are correct and will indem- shall the Postal Service be required to nify the employee directly for any er- vary its normal pay or disbursement rors. All garnishments of periodic pay cycles in order to comply with legal may be effectuated in accordance with process of any kind. Garnishments the bi-weekly pay schedule. The Postal shall be recalculated, if required, to fit Service need not vary its pay and dis- within the normal postal pay cycles. bursement cycles to accommodate The Postal Service shall not be re- withholding on any other cycle. quired to withhold pay and hold the (c) Neither the Postal Service, the funds in escrow. The Postal Service, in Postal Rate Commission nor any dis- its sole discretion, may process more bursing officer shall be liable for any than one garnishment at a time within payment made from moneys due from, the restrictions on garnishments in or payable by the Postal Service or the Section 491.9 of these regulations. The Postal Rate Commission to any indi- Postal Service may, in its sole discre- vidual pursuant to legal process reg- tion, accept and hold for processing ular on its face. garnishments received after the garnishment currently in force. (d) The Postal Service, the Postal (b) The Postal Service will only ac- Rate Commission, any disbursing offi- cept and effectuate legal process for a cer or any other employee shall not be person who is currently employed. liable to pay money damages for fail- Upon cessation of employment, process ure to comply with legal process. relating to that individual will be terminated and not retained. The Postal § 491.9 Restrictions on garnishment. Service shall not be required to estab- Garnishments under this section lish an escrow account to comply with shall be subject to the restrictions in 15 legal process even if the applicable law U.S.C. 1671–1677, including limits on the of the jurisdiction requires private em- amounts which can be withheld from ployers to do so. Legal process must an employee’s pay and the priority of state on its face that the Postal Serv- garnishments.

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PART 501—AUTHORIZATION TO cation and administering its meter pro- MANUFACTURE AND DISTRIBUTE gram. POSTAGE METERS § 501.2 Manufacturer qualification. Sec. Any concern wanting authorization 501.1 Manufacturer authorization. to manufacture and/or lease postage 501.2 Manufacturer qualification. meters for use by licensees under Do- 501.3 Changes in ownership or control. mestic Mail Manual P030 must: 501.4 Burden of proof standard. (a) Satisfy the Postal Service of its 501.5 Suspension and revocation of authorization. integrity and financial responsibility; 501.6 Specifications. (b) Obtain approval of at least one 501.7 Test plans. meter model incorporating all the fea- 501.8 Submission of each model. tures and safeguards specified in § 501.6; 501.9 Security testing. (c) Have, or establish, and keep under 501.10 Meter approval. 501.11 Conditions for approval. its supervision and control, adequate 501.12 Suspension and revocation of ap- production facilities suitable to carry proval. out the provisions of §§ 501.15 through 501.13 Reporting. 501.21 to the satisfaction of the Postal 501.14 Administrative sanction on report- Service. The production facilities must ing. be subject to unannounced inspection 501.15 Materials and workmanship. by representatives of the Postal Serv- 501.16 Breakdown and endurance testing. ice. If the provider’s production facili- 501.17 Protection of printing dies and keys. 501.18 Secure destruction. ties are located outside the continental 501.19 Destruction of meter stamps. United States, the provider will be re- 501.20 Inspection of new and rebuilt meters. sponsible for all reasonable and nec- 501.21 Keys and setting equipment. essary travel-related costs incurred by 501.22 Inventory control. the Postal Service to conduct the in- 501.23 Distribution controls. spections. Travel-related costs are de- 501.24 Administrative sanction. termined in accordance with Postal 501.25 Meter replacement. Service Handbook F–15, Travel and Re- 501.26 Inspection of meters in use. 501.27 Meters not located. location. At its discretion, the Postal 501.28 Protection and control of internal Service may continue to fund routine and security components. inspections outside the continental 501.29 Computerized remote postage meter United States as it has in the past, pro- resetting. vided the costs are not associated with 501.30 Licensee information. particular security issues related to a AUTHORITY: 5 U.S.C. 552(a); 39 U.S.C. 101, manufacturer’s product, or with the 401, 403, 404, 410, 2601, 2605; Inspector General start-up or implementation of a new Act of 1978, as amended (Pub. L. 95–452, as plant or of a new or substantially amended), 5 U.S.C. App. 3. changed manufacturing process. SOURCE: 60 FR 30726, June 9, 1995, unless (1) When conducting an inspection otherwise noted. outside the continental United States, the Postal Service will make every ef- § 501.1 Manufacturer authorization. fort to combine the inspection with Any person or concern seeking au- other inspections in the same general thorization to manufacture and dis- geographic area in order to enable af- tribute postage meters must submit a fected manufacturers to share the request to the Postal Service in person costs. The Postal Service team con- or in writing. Upon qualification and ducting such inspections will be lim- approval, the applicant is authorized in ited to the minimum number necessary writing to manufacture meters and to to conduct the inspection. All air trav- lease them to persons licensed accord- el will be contracted for at the rates ingly by the Postal Service. The Postal for official government business, when Service may specify the functional available, under such rules respecting area charged with processing the appli- class of travel as apply to those Postal

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Service representatives inspecting the manufacturer voluntarily admitted to facility at the time the travel occurs. the violation, whether the manufac- (2) If political or other impediments turer cooperated with the Postal Serv- prevent the Postal Service from con- ice, whether the manufacturer imple- ducting security evaluations of meter mented successful remedial measures) manufacturing facilities in foreign and on the manufacturer’s performance countries, Postal Service approval to history. Before determining whether a distribute meters produced in those fa- manufacturer’s authorization to manu- cilities may be suspended until such facture and/or distribute meters should time as satisfactory inspections may be revoked, the procedures in para- be conducted. graph (c) of this section shall be fol- (d) Have, or establish, and keep under lowed. its active supervision and control ade- (c) Suspension in all cases shall be as quate facilities for the control, dis- follows: tribution, and maintenance of meters (1) Upon determination by the Postal and their replacement or secure dis- Service that a manufacturer is in vio- posal or destruction when necessary. lation of the provisions in this part 501, [60 FR 30726, June 9, 1995, as amended at 67 the Postal Service shall issue a written FR 69479, Nov. 18, 2002; 67 FR 71843, Dec. 3, notice of proposed suspension citing de- 2002] ficiencies for which suspension of authorization to manufacture and/or dis- § 501.3 Changes in ownership or control. tribute a specific meter or class of meters may be imposed under paragraph Any person or concern wanting to ac- (c)(2) of this section. Except in cases of quire ownership or control of an au- willful violation, the manufacturer thorized postage meter manufacturer shall be given an opportunity to cor- must provide the Postal Service with rect deficiencies and achieve compli- satisfactory evidence of that person’s ance with all requirements within a or concern’s integrity and financial re- time limit corresponding to the poten- sponsibility. tial risk to postal revenue. § 501.4 Burden of proof standard. (2) In cases of willful violation, or if the Postal Service determines that the The burden of proof is on the Postal manufacturer has failed to correct Service in adjudications of suspension cited deficiencies within the specified and revocation under §§ 501.5 and 501.12 time limit, the Postal Service shall and administrative sanctions under §§ 501.14 and 501.23. Except as otherwise issue a written notice setting forth the indicated in those sections, the stand- facts and reasons for the decision to ard of proof shall be the preponderance- suspend and the effective date if a writ- of-evidence standard. ten defense is not presented as provided in paragraph (d) of this section. § 501.5 Suspension and revocation of (3) If, upon consideration of the de- authorization. fense as provided in paragraph (e) of (a) The Postal Service may suspend this section, the Postal Service deems and/or revoke authorization to manu- that the suspension is warranted, the facture and/or distribute any or all of a suspension shall remain in effect for up manufacturer’s postage meters if the to 90 days unless withdrawn by the manufacturer engages in any unlawful Postal Service, as provided in para- scheme or enterprise, fails to comply graph (c)(4)(iii) of this section. with any provision in this part 501, or (4) At the end of the 90-day suspen- fails to implement instructions issued sion, the Postal Service may: in accordance with any final decision (i) Extend the suspension in order to issued by the Postal Service within its allow more time for investigation or to authority over the meter program. allow the manufacturer to correct the (b) The decision to suspend or revoke problem; a manufacturer’s authorization shall (ii) Make a determination to revoke be based on the nature and cir- authorization to manufacture and/or cumstances of the violation (whether distribute the manufacturer’s meters the violation was willful, whether the in part or in whole; or

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(iii) Withdraw the suspension based multiples of the smallest unit printed on identification and implementation (multidenomination) or the currency of a satisfactory solution to the prob- value of the impressions made lem. Manufacturer suspensions may be (omnidenomination). The printing die withdrawn before the end of the 90- or dies, counters, and counteractuating day period if the Postal Service deter- mechanism must be inseparable from mines that the manufacturer’s solution the meter, except by the manufacturer. and implementation are satisfactory. (c) In each meter, there must be two (d) The manufacturer may present accurate and dependable counting de- the Postal Service with a written devices: one ascending and registering fense to any suspension or revocation the total imprinted, the other descend- determination within 30 calendar days ing and registering the unused postage of receiving the written notice (unless balance. The descending register must a shorter period is deemed necessary). actuate a locking mechanism that pre- The defense must include all sup- vents further operation of the meter porting evidence and state with speci- after the register descends to zero or ficity the reasons for which the order an amount less than the largest de- should not be imposed. nomination printable in one operation. (e) After receipt and consideration of In electronic meters, the locking de- the defense, the Postal Service shall vice must prevent printing if the advise the manufacturer of the decision amount to be printed reduces the de- and the facts and reasons for it. The decision shall be effective on receipt scending register to less than zero. The unless it provides otherwise. The deci- construction of the descending register sion shall also advise the manufacturer must allow the post office to set any that it may appeal that determination amount of postage or number of im- within 30 calendar days of receiving pressions within its capacity, prepaid written notice (unless a shorter time by the licensee. frame is deemed necessary), as speci- (d) The entire meter must be encased fied therein. The appeal must include in a substantial housing to which un- all supporting evidence and state with authorized access cannot be gained specificity the reasons the manufac- without creating obvious damage. The turer believes that the decision is erro- descending register must be accessible neous. to the post office by a door equipped (f) An order or final decision under with a suitable lock and with provision this section does not preclude any for a post office seal. The requirement other criminal or civil statutory, com- that accessibility to the descending mon law, or administrative remedy register be restricted does not apply to that is available by law to the Postal Computerized Remote Postage Meter Service, the United States, or any Resetting System electronic meters other person or concern. that have no access to the descending register of the meter. Descending reg- § 501.6 Specifications. isters on this type of meter are reset Postage meters must incorporate all electronically by coded input only. The the following features and safeguards: ascending register and all other compo- (a) A postage meter is the postage nents must be so shielded as not to be printing die and postage registering accessible even when the door is open. mechanism of a mailing machine. It The readings of both registers must be may be integral with the mailing ma- easily obtainable at any time between chine or separable. In either case, the operations, by visibility through closed licensee must be able to take the meter windows, by imprint on tape or card, or to the post office for setting or exam- by a combination of the two methods. ination. The construction of the housing must (b) A meter may be capable of print- make it impossible to alter the reading one denomination of postage and ings of the ascending register except by registering the number of such impres- normal operation or impossible to gain sions made (single denomination), or it access to the internal components, ex- may be capable of printing varying de- cept for setting the descending register nominations and registering either under § 501.20(c), without mutilation.

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(e) The printing die must either con- ternal power applied and with suffi- form in design to one already in use or cient redundancy to be self-checking. be approved by the Postal Service. The (2) Be able to display the amounts in die must include the serial number of both the ascending and the descending the meter and identification of the registers (not necessarily at the same manufacturer, and the die must be so time). constructed or shielded that it is not (3) Be able to display, free from acci- practically possible without proper dental changes, the next amount of registration in the ascending and de- postage to be printed. scending register to obtain imprints (4) Be resettable by Postal Service fraudulently. The die must be attached to the meter in a manner (such as with employees, preferably without cus- breakoff screws) that it is not prac- tomized equipment. ticable to remove or replace the die (5) Contain a fault-detection device fraudulently. for computational security that auto- (f) The meter die must include a post- matically locks out the meter and pre- mark to print the name of the city and vents printing of additional postage in state from which mail is dispatched the event of malfunction. and the date of mailing, except as spec- (6) Meet Postal Service test specifica- ified by the Postal Service. Informa- tions in United States Postal Service tion that must appear in the meter Specification, Postage Meters, Elec- postmark and the location of that post- tronic, Postal Service-M–942 (RDC). mark must be as specified by the Post- Persons wanting to manufacture elec- al Service. tronic meters may obtain a copy of (g) A meter may be designed to print this Postal Service test specification a meter slogan or ad plate to the left from Postal Service Headquarters. of, and next to, the postmark. The size (j) Auxiliary equipment required for and position of a meter slogan or ad the operation of the meters must be plate must not interfere with or ob- part of the final production models scure the meter stamp or postmark, and it must be possible to install the submitted for Postal Service approval. plate easily without exposing the Failure of the auxiliary equipment, meter stamp die. Plates must be made which could cause malfunction in of suitable, durable material that does meter operation, is considered the not soften or disintegrate while in use. same as a meter failure. Plates must be well-fitted and so securely fastened to the printing mecha- § 501.7 Test plans. nism that they do not become loose or To receive Postal Service approval, a detached or otherwise interfere with postage meter must be tested. Manu- proper operation of a meter. facturers of electronic meters must (h) The entire meter must be of suffi- submit a detailed test plan to the Post- ciently solid, substantial, and depend- al Service for approval at least 60 days able construction that protects the before conducting the tests. The test Postal Service amply against loss of plan must include tests that, if passed revenue from fraud, manipulation, by a meter, prove compliance by the misoperation, or breakdown. meter with all postal requirements. (i) In addition to the features and The test plan must list the parameters safeguards above, electronic meters to be tested, test equipment, proce- must: (1) Have either nonvolatile ascending dures, test sample sizes, and test data and descending registers or a solid- formats. Also, the plan must include state memory that stores the data for detailed descriptions, specifications, the ascending and descending registers. design drawings, schematic diagrams, Solid-state memories that rely on ap- and explanations of the purposes of all plied voltage for memory retention special test equipment and non- must be powered by batteries with a standard or noncommercial instrumen- minimum support life of 5 years from tation. the date of battery renewal with no ex-

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§ 501.8 Submission of each model. that includes an explanation of how the device is reset as well as rec- Each meter model proposed for man- ommended methods for detecting evi- ufacture must be approved by the Post- dence of tampering. al Service after testing at the manu- (c) As a condition of approval, the facturer’s expense. A preliminary manufacturer has a continuing obliga- working model that meets the speci- tion to provide the Postal Service with fications in § 501.6 may be submitted for copies of service manuals and updates tentative approval. No meter of any to setting instructions. The manufac- model may be distributed or used for turer must also promptly provide Re- postage payment until a complete unit tail Systems and Equipment, Postal made to production drawings and speci- Service Headquarters, with any addi- fications is submitted, tested, and ap- tional documentation on request. proved, unless authorized for prelimi- (d) On request by the Postal Service, nary field testing. additional meters must be submitted § 501.9 Security testing. to the Postal Service for testing, at the expense of the manufacturer. The Postal Service reserves the right to require or conduct additional exam- § 501.12 Suspension and revocation of ination and testing at any time, with- approval. out cause, of any meter submitted to (a) The Postal Service may suspend the Postal Service for approval or ap- meter approval under § 501.10 if the proved by the Postal Service for manu- Postal Service has probable cause to facture and distribution. believe that a manufacturer’s meter or class of meters poses an unreasonable § 501.10 Meter approval. risk to postal revenue. Suspension of As provided in § 501.13, the manufac- approval to manufacture or distribute turer has a duty to report security a meter or class of meters in whole or weaknesses to the Postal Service to en- in part shall be based on the potential sure that each meter model and every risk to postal revenue. Before deter- meter in service protects the Postal mining whether approval of a meter or Service against loss of revenue at all class of meters should be revoked, the times. A grant of approval of a model procedures in paragraph (b) of this sec- does not constitute an irrevocable de- tion shall be followed. termination that the Postal Service is (b) Suspension in all cases shall be as satisfied with the revenue-protection follows: capabilities of the model. After ap- (1) Upon determination by the Postal proval is granted to manufacture and Service that a meter poses an unrea- distribute a meter, no change affecting sonable risk to postal revenue, the the basic features or safeguards of a Postal Service shall issue a written no- meter may be made except as author- tice of proposed suspension citing defi- ized or ordered by the Postal Service in ciencies for which suspension may be writing. imposed under paragraph (b)(2) of this section. The manufacturer shall be § 501.11 Conditions for approval. given an opportunity to correct defi- (a) The Postal Service may require, ciencies and achieve compliance with and reserves future rights to require, all requirements within a time limit that production models of approved corresponding to the potential risk to meters be deposited with the Postal postal revenue. Service. (2) If the Postal Service determines (b) The manufacturer must provide that the manufacturer has failed to copies of resetting and inspection correct cited deficiencies within the media to each licensing post office be- specified time limit, the Postal Service fore distribution. The contents of the shall issue a written notice setting media must explain how the meter is forth the facts and reasons for the deci- reset and describe any special or sion to suspend and the effective date if unique features of the meter. The man- a written defense is not presented as ufacturer must also provide a training provided in paragraph (c) of this sec- video for any new metering product tion.

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(3) If, upon consideration of the de- § 501.13 Reporting. fense as provided in paragraph (d) of (a) For purposes of this section, this section, the Postal Service deems ‘‘manufacturer’’ refers to the author- that the suspension is warranted, the ized postage meter manufacturer in suspension shall remain in effect for up § 501.1 and its foreign affiliates, subsidi- to 90 days unless withdrawn by the aries, assigns, dealers, independent Postal Service, as provided in para- dealers, employees, and parent cor- graph (b)(4)(iii) of this section. porations. (4) At the end of the 90-day suspen- (b) Each authorized meter manufac- sion, the Postal Service may: turer in § 501.1 must submit a prelimi- (i) Extend the suspension in order to nary report to notify the Postal Serv- allow more time for investigation or to ice promptly (in no event more than 21 allow the manufacturer to correct the calendar days of discovery or 21 cal- problem; endar days from June 30, 1995) of the (ii) Make a determination to revoke following: the approval of the manufacturer’s (1) All findings or results of any test- meter or class of meters; or ing known to the manufacturer con- (iii) Withdraw the suspension based cerning the security or revenue protec- on identification and implementation tion features, capabilities, or failings of a satisfactory solution to the prob- of any meters sold, leased, or distrib- lem. Manufacturer suspensions may be uted by the manufacturer that have withdrawn before the end of the 90-day been approved for sale, lease, or dis- period if the Postal Service determines tribution by the Postal Service or any that the manufacturer’s solution and foreign postal administration; or have implementation are satisfactory. been submitted for approval by the (c) The manufacturer may present manufacturer to the Postal Service or the Postal Service with a written de- other foreign postal administration(s). fense to any suspension or revocation (2) All potential security weaknesses determination within 30 calendar days or methods of meter tampering of the of receiving the written notice (unless meters that the manufacturer distrib- a shorter period is deemed necessary). utes of which the manufacturer knows The defense must include all sup- or should know, and the meter or porting evidence and state with speci- model subject to each method. These ficity the reasons for which the order potential security weaknesses include should not be imposed. but are not limited to suspected equip- (d) After receipt and consideration of ment defects, suspected abuse by a the written defense, the Postal Service meter licensee or manufacturer em- shall advise the manufacturer of the ployee, suspected security breaches of decision and the facts and reasons for the Computerized Remote Postage it. The decision shall be effective on re- Meter Resetting System, occurrences ceipt unless it provides otherwise. The outside normal performance, or any re- decision shall also advise the manufac- peatable deviation from normal meter turer that it may appeal that deter- performance (within the same model mination within 30 calendar days of re- family and/or by the same licensee). ceiving written notice (unless a shorter (c) Within 45 days of the preliminary period is deemed necessary), as speci- notification of the Postal Service fied therein. The appeal must include under § 501.13(b), the manufacturer all supporting evidence and state with must submit a written report to the specificity the reasons that the manu- Postal Service. The report must in- facturer believes that the decision is clude the circumstances, proposed in- erroneous. vestigative procedure, and the antici- (e) An order or final decision under pated completion date of the investiga- this section does not preclude any tion. The manufacturer must also pro- other criminal or civil statutory, com- vide periodic status reports to the mon law, or administrative remedy Postal Service during subsequent in- that is available by law to the Postal vestigation and, on completion, must Service, the United States, or any submit a summary of the investigative other person or concern. findings.

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(d) The manufacturer must establish (e) The manufacturer may submit a and adhere to timely and efficient pro- written appeal to the Postal Service cedures for internal reporting of poten- within 30 calendar days of receipt of tial security weaknesses. The manufac- the decision. The appeal must include turer is required to submit a copy of all supporting evidence and state with internal reporting procedures and in- specificity the reasons that the manu- structions to the Postal Service for re- facturer believes that the administra- view. tive sanction was erroneously imposed. The submission of an appeal stays the § 501.14 Administrative sanction on re- effectiveness of the sanction. porting. (f) The imposition of an administra- (a) Notwithstanding any act, admis- tive sanction under this section does sion, or omission by the Postal Service not preclude any other criminal or before June 30, 1995, an authorized post- civil statutory, common law, or admin- age meter manufacturer may be sub- istrative remedy that is available by ject to an administrative sanction for law to the Postal Service, the United failing to comply with § 501.13. States, or any other person or concern. (b) The Postal Service shall deter- § 501.15 Materials and workmanship. mine all costs and revenue losses measured from the date that the manufac- All meters must adhere to the qual- turer knew, or should have known, of a ity in materials and workmanship of potential security weakness, including, the approved production model and but not limited to, administrative and must be manufactured with suitable investigative costs and documented jigs, dies, tools, etc., to ensure proper revenue losses that result from any maintenance and interchangeability of meter for which the manufacturer parts. failed to comply with any provision in § 501.16 Breakdown and endurance § 501.13. The Postal Service shall re- testing. cover any and all such costs and losses Each meter model proposed for man- (net of any amount collected by the ufacturing must pass without error or Postal Service from the licensees or breakdown the following described meter users) with interest by issuing a printing cycle endurance test, which written notice to the manufacturer set- includes operation of the printing ting forth the facts and reasons on mechanism with proper registration of which the determination to impose the the selected postage value in both the sanction is based. The notice shall ad- ascending and descending registers. At vise the manufacturer of the date that reasonably frequent intervals, the the action takes effect if a written de- manufacturer must take meters at ran- fense is not presented within 30 cal- dom from production and subject them endar days of receipt of the notice. to breakdown tests to make certain (c) The manufacturer may present that quality and performance stand- the Postal Service with a written de- ards are maintained. fense to the proposed action within 30 (a) For meters that operate at 100 or calendar days of receipt. The defense more printing cycles per minute—4 must include all supporting evidence million cycles. For meters that operate and state with specificity the reasons at less than 100 printing cycles per for which the sanction should not be minute (and cannot be used inter- imposed. changeably on power-base machines (d) After receipt and consideration of that operate at 100 or more printing cy- the defense, the Postal Service shall cles per minute)—2 million cycles. advise the manufacturer of the decision (b) For multidenomination and and the facts and reasons for it; the de- omnidenomination meters, postage cision shall be effective on receipt un- value selection elements must be test- less it provides otherwise. The decision ed for one-half million operations. A shall also advise the manufacturer that complete operation includes selection it may, within 30 calendar days of re- of a value and return to zero. ceiving written notice, appeal that de- (c) Balance register lockout oper- termination as specified therein. ation must be done at the start of, at

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intervals during, and after the printing numbers recorded by the manufacturer/ cycle test. distributor on the list of destroyed meters, and that the destruction is per- § 501.17 Protection of printing dies formed in accordance with a Postal and keys. Service-approved method or process. During the process of fabricating (b) These requirements for meter de- parts and assembling postage meters, struction apply to all postage meters, the manufacturer must exercise due postage evidencing systems, and postal care to prevent loss or theft of keys or security devices included as a compo- of serially numbered postage-printing nent of a postage evidencing system. dies or component parts (such as denomination-printing dies, or auxiliary [66 FR 55097, Nov. 1, 2001] power supply and meter-setting equipment for electronic meters) that might § 501.19 Destruction of meter stamps. be used in some manner to defraud the All meter stamps printed in the proc- Postal Service of revenue. All serially ess of testing dies or meters must be numbered printing dies produced collected and destroyed daily. should be accounted for by assembly into meters or by evidence of mutila- [60 FR 30726, June 9, 1995. Redesignated at 66 FR 55097, Nov. 1, 2001] tion or destruction. Postage printing dies removed from meters and not suit- § 501.20 Inspection of new and rebuilt able for reassembly must also be muti- meters. lated so that the dies cannot be used or they must be completely destroyed. All new and rebuilt meters must be inspected carefully before leaving the § 501.18 Secure destruction. manufacturer’s meter service station. (a) Authorized meter manufacturers/ [60 FR 30726, June 9, 1995. Redesignated at 66 distributors may destroy meters, when FR 55097, Nov. 1, 2001] required, in accordance with methods approved in advance by the manager of § 501.21 Keys and setting equipment. Postage Technology Management. The The meter manufacturer must fur- postage meter must be rendered com- nish keys and other essential equip- pletely inoperable by the destruction ment for setting the meters to all post process and associated postage-printing offices under whose jurisdiction its me- dies must be destroyed in accordance ters are licensed for use. These items with § 501.17. Manufacturers/distribu- must be protected and must not be fur- tors must submit the proposed destruc- nished to persons not authorized by the tion method; a schedule listing the me- Postal Service to possess them. The ters to be destroyed, by serial number Postal Service shall maintain control and model; and the proposed time and over the procurement, manufacture, place of destruction to the manager of and distribution of meter security Postage Technology Management for seals. Manufacturers must reimburse approval prior to any meter destruc- the Postal Service promptly for the tion. Manufacturers/distributors must cost of the seals. All costs associated record and retain the serial numbers of with meter security seals are appor- the meters to be destroyed, and provide tioned twice annually to the meter the list in electronic form in accord- manufacturers by the installed base of ance with Postal Service requirements each manufacturer. for postage meter accounting and tracking systems. Manufacturers/dis- [60 FR 30726, June 9, 1995. Redesignated at 66 tributors must give sufficient advance FR 55097, Nov. 1, 2001] notice of the destruction to allow the manager of Postage Technology Man- § 501.22 Inventory control. agement to schedule observation by (a) An authorized manufacturer must Postage Technology Management or its maintain sufficient facilities for and designated representative. The Postal records of the distribution, control, Service representative must ensure storage, maintenance, repair, replace- that the serial numbers of the meters ment, and destruction or disposal of all destroyed are the same as the serial meters and their components to enable

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accurate accounting thereof through- Deficiencies in the operations of a out the entire meter life cycle. Record- third party relating to the custody and keeping is required for all meters in- control of postage meters, unless cor- cluding newly produced meters, active rected in a timely manner, can place at leased meters, inactive meters, un- risk a manufacturer’s approval to man- leased meters, and lost or stolen me- ufacture and/or distribute postage meters. All such facilities and records are ters. subject to inspection by Postal Service (5) The Postal Service reserves the representatives. right to review all aspects of any third- (b) If the manufacturer uses a third party relationship when it becomes party to perform functions that may aware that the relationship poses a affect meter security, including, but threat to meter security under para- not limited to meter repair, mainte- graph (b)(2) of this section, whether or nance, and disposal, the manager of not that relationship required author- Postage Technology Management, ization under paragraph (b) of this sec- Postal Service Headquarters, must re- tion. view in advance all aspects of the relationship, as they relate to the custody [68 FR 2698, Jan. 21, 2003] and control of meters, and must spe- § 501.23 Distribution controls. cifically authorize in writing the arrangement between the parties. Each authorized postage meter man- (1) Postal Service authorization of a ufacturer must do the following: third-party relationship for a given (a) Hold title permanently to all me- function does not extend to any other ters of its manufacture except those function. Extension of the third-party purchased by the Postal Service. relationship to another function must (b) On behalf of applicants, transmit be implemented and approved as if it electronically copies of completed PS were a new relationship. Forms 3601–A, Application for a Li- (2) No third-party relationship shall cense to Lease and Use Postage Meters, compromise the security of the meter, to the designated Postal Service cen- or of any of its components, including, tral processing facility. but not limited to, the hardware, soft- (c) Lease meters only to parties that ware, communications, and security have valid licenses issued by the Postal components, or of any system with Service. which it interfaces, including, but not (d) Supply only those meter slogan or limited to, the resetting system, read plates that meet the Postal Service porting systems, and Postal Service requirements for suitable quality and support systems. The functions of the content. third party with respect to a meter, its (e) (1) Have all meters set, sealed (if components, and the systems with applicable), and checked into service which it interfaces are subject to the by the appropriate Postal Service rep- same scrutiny as the equivalent func- resentative before delivering them to tions of the manufacturer. licensees. Meters must be checked into (3) Any authorized third party must service at the licensing post office, un- keep adequate facilities for and records less the meter is serviced under the on- of meters and their components in ac- site meter-setting program. cordance with paragraph (a) of this sec- (2) The meter manufacturer must tion. All such facilities and records are present the meter and a completed PS subject to inspection by Postal Service Form 3601–C, Postage Meter Installa- representatives, insofar as they are tion, Withdrawal, or Replacement, to used to distribute, control, store, main- the appropriate Postal Service rep- tain, repair, replace, destroy, or dis- resentative when checking a meter pose of meters. into service. (4) The manufacturer must ensure (3) A meter should show a zero in the that any party acting in its behalf in descending register before being any of the functions described in para- checked into service. If a zero is not graph (a) of this section maintains ade- shown, the initial payment must in- quate facilities, records, and proce- clude the residual amount the locked- dures for the security of the meters. out meter could not imprint.

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(f) Notify Computerized Remote formation or other indication that the Postage Meter Resetting System li- meter has some mechanical or elec- censees of the dates on which meter ex- trical malfunction of any critical secu- aminations are due, and notify the li- rity component, such as any compo- censing post offices of CMRS meters nent the improper operation of which that have not been reset during the could adversely affect Postal Service previous 3 months and/or are due for an revenues, or of any memory compo- annual examination. Resetting trans- nent, or that affects the accuracy of actions must not be completed by the the registers or the accuracy of the manufacturer if the meters are not value printed, as follows: taken to the post office for examina- (1) Ensure that all functions required tion by the due date. Licensees who do to handle faulty meters are completed not bring in their meters after the ini- in a timely manner and in accordance tial manufacturer notification must be with Postal Service regulations and approached again within 15 days, pref- procedures. erably by personal contact. If a re- (2) Begin the process to retrieve any sponse is not received within another faulty meter within 2 business days of 15 days, the Postal Service shall notify being notified of a problem. the licensee that the meter is to be re- (3) Complete PS Form 3601–C, Post- moved from service and the meter li- age Meter Activity Report, in the pres- cense revoked, following the proce- ence of the licensee and obtain the li- dures for revocation specified by regu- censee’s signature on the form con- lation. The Postal Service shall notify firming that the information is accu- the manufacturer to remove the meter rate. from the licensee’s location and present it to the licensing post office to (i) Include the register information be checked out of service within 15 on the form when the registers can be days. read. (g) Check a nonfaulty meter out of (ii) Print the system report, if avail- service in accordance with the proce- able for the meter, and attach the re- dures that the Postal Service has ap- port to PS Form 3601–C when the reg- proved for that meter when the meter ister values cannot be read. is to be removed from service for any (iii)Have the licensee provide any reason. Ensure that a Postal Service original daily usage logs with PS Form employee certifies the register read- 3601–C for refund calculation when the ings and clears the descending register register values cannot be read. when the meter is checked out of serv- (4) Identify and tag the meter as ice, unless the Postal Service has ap- faulty as soon as the manufacturer or proved other procedures for the specific the manufacturer’s agent receives it meter model. Complete the checkout from the customer. Keep the identifica- process in a timely manner and trans- tion tag and the PS Form 3601–C, which mit the required data to the appro- was completed under paragraph (h)(3) priate Postal Service information sys- of this section, with the faulty meter tems. Ensure that no employee of the until processing is completed and the meter manufacturer or any third-party meter is returned to service or is changes, interferes with, or performs scrapped. any element of the Postal Service em- (5) Secure all faulty meters and ployee’s established checkout and maintain the integrity of the meter withdrawal process for any meter, un- and of the information residing on the less approval for the change in proce- meter. Maintain control of the meter dures is granted in writing by the Post- until processing is completed. al Service. (6) Ensure that under no cir- (h) Handle faulty meters, including cumstance are registers on a faulty those that are inoperable, those that meter cleared or any funds refunded or are misregistering or the registers are transferred until examination and unreadable, those that inaccurately re- processing are completed, the Postal flect their current status, those that Service has reviewed and analyzed the show any evidence of tampering or manufacturer’s report and determined abuse, and those for which there is in- the appropriate postage adjustment, if

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any, and approved refund procedures on estimated highest average daily are followed. usage, or applicable system-generated (7) Maintain a record of the faulty register documentation. Include the meter and all changes in its custody, original daily usage logs maintained by state, and condition (including avail- the customer, if any, with the sup- ability of register information) from porting data. the time the meter is reported as (ii) Furnish a report explaining the faulty until processing is completed malfunction to the Postal Service under paragraphs (h)(9), (12), or (14) of within 7 days of receiving the meter. this section. Make the record available Accompany the report with a rec- to the Postal Service for its review ommendation of the postage adjust- upon request. ment amount that includes all data de- (8) Examine each meter withdrawn veloped to support the recommenda- for faulty operation as soon it is re- tion. ceived from the customer to determine (iii) Maintain control of those meters if the registers can be read and if there that have unreadable registers and is any evidence of tampering. hold them in the manufacturer’s dedi- (9) When the registers can be read or cated, secure facility described in para- a summary report of the appropriate graph (h)(10) of this section until a rep- redundant electronic register memory resentative of the Postal Service ap- readouts is available using Postal Serv- proves the postage adjustment amount ice-approved methods, and there is no or verifies the condition of the meter evidence of tampering or any problem before proceeding with the meter recovered by paragraph (h)(13) of this sec- pair or destruction. tion: (13) In some instances, even though (i) Check out the meter and withdraw the registers can be read, there is infor- it from service under paragraph (g) of mation or other indication that the this section. meter has some mechanical or elec- (ii) Submit a report to the Postal trical malfunction that affects the ac- Service by the 15th of each month list- curacy of the registers or the accuracy ing all faulty meters with readable dis- of the value printed. Handle such me- plays and no other problems received ters under paragraph (h)(12) of this sec- in the prior month, identifying the tion. meter and including an explanation of (14) If there is evidence or suspicion the meter malfunction. of tampering: (10) Maintain a dedicated, secure fa- (i) Ensure that the meter is handled cility, approved by the Postal Service, in a secure manner and maintained in for handling faulty meters that cannot its original state until the Postal Serv- be handled under paragraph (h)(9) of ice or its agent can be present during this section. the examination. (11) Ship faulty meters not handled (ii) After examination, if approved by under paragraph (h)(9) of this section the Postal Service or its agent, process directly to the secure facility described the meter under paragraph (h)(12) of in paragraph (h)(10) of this section for this section. processing. Ship these faulty meters (15) Issue the refund of any postage via Registered Mail service, Express value said to remain in a faulty meter, Mail service, or Priority Mail service after Postal Service approval of the with Delivery Confirmation service. amount of the refund, when the Postal (12) If there is no evidence of tam- Service requires it. Request reimburse- pering, if the meter registers cannot be ment from the Postal Service for these read, and if a summary report of the refunds by periodically submitting a appropriate redundant electronic reg- reimbursement request letter to the ister memory readouts cannot be re- Postal Service. Accompany the letter trieved: with listings and support documenta- (i) Develop other data to support the tion for each refund and indicate the request for Postal Service approval of a cause of failure for each incident. postage adjustment amount, such as a (i) Report promptly the loss or theft manual calculation of the estimated of any meter or the recovery of any value of the descending register based lost or stolen meter. The manufacturer

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must provide notification by the Postal postmasters, as well as those sections Service with completing a standardized of the manufacturer’s establishment in lost and stolen meter incident report which their use of the keys is essential, notifying within 30 calendar days of preferably in the form of signed receipt the manufacturer’s determination of a cards. The record must include the meter loss, theft, or recovery. The date, location, and details of any loss, manufacturer must complete all pre- theft, or recovery of such keys. liminary location activities specified (o) Examine each meter withdrawn in § 501.26 before submitting this report from service for failure to record its to the Postal Service. (j) Provide the designated Postal operations correctly and accurately, Service Information Systems Service and report to the Postal Service the Center (ISSC) with a compatible com- mechanical condition or fault that puter magnetic tape, computer disk- caused the failure. ette, or electronic transmission, listing (p) Provide monthly the designated all licensee meters in service, at the ISSC with a compatible computer tape close of business each postal quarter. of lost or stolen meters. The file is due Include in each file record the meter on the first of each month (for the pre- serial number, model number, the ceding month’s activity). user’s name and address, the date that (q) Take reasonable precautions in the meter was placed in service, and the transportation and storage of me- the ZIP Code or finance number of the ters to prevent use by unauthorized in- licensing post office. Manufacturers dividuals. Manufacturers must ship all are responsible for reconciling dif- meters by Postal Service registered ferences and keeping accurate records. mail unless given written permission This reporting includes reconciliation by the Postal Service to use another of differences with licensing post of- carrier. The manufacturer must dem- fices by the manufacturer’s branches or dealers, which results from meters that onstrate that the alternative delivery are not in Postal Service or manufac- carrier employs security procedures turer records. equivalent to those for registered mail. (k) Keep at manufacturer’s head- (r) Affix to all meters both a cau- quarters a complete record by serial tionary label providing the meter user number of all meters manufactured, with basic reminders on leasing, meter showing all movements of each from movement, and misuse and a barcoded the time that the meter is produced label containing a barcoded representa- until it is scrapped, and the reading of tion of the meter serial number. the ascending register each time the (1) The cautionary label must be meter is checked into or out of service placed on all meters in a conspicuous through a post office. These records and highly visible location. Words must be available for inspection by printed in capital letters should be em- Postal Service officials at any time phasized, preferably printed in red. The during business hours. These records minimum width of the label should be must be destroyed 3 years after the 3.25 inches, and the minimum height meter is scrapped. should be 1.75 inches. The label should (l) Cancel a lease agreement with any lessee whose meter license is revoked read as follows: by the Postal Service, remove the llllllllllllllllllllllll meter within 15 calendar days, and have the meter checked out of service. RENTED POSTAGE MEMBER—NOT FOR (m) Promptly remove from service SALE any meter that the Postal Service indi- PROPERTY OF [NAME OF cates should be removed from service. MANUFACTURER] When a meter license is canceled, all meters in use by the licensee must be Use of this meter is permissible only under removed from service. U.S. Postal Service license. Call [Name of (n) Keep a permanent record by serial Manufacturer] at (800) ###-#### to relo- number of all meter keys issued to cate/return this meter.

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WARNING! METER TAMPERING IS A (t) A postage meter loaned to a cus- FEDERAL OFFENSE. tomer for temporary use (a ‘‘loaner meter’’) is typically used to acquaint a IF YOU SUSPECT METER TAMPERING, potential user with the features of a CALL POSTAL INSPECTORS AT 1–800–654– meter as part of the sales effort, or 8896 OR (202) 484–5480. serves as a temporary placement while REWARD UP TO $50,000 for information the customer awaits delivery of a new leading to the conviction of any person meter. The following procedures must who misuses postage meters resulting in be followed to implement controls over the Postal Service not receiving correct loaner meters: postage payments. (1) A loaner meter prints valid indi- llllllllllllllllllllllll cia and may be used to apply postage (2) The barcode label must be placed to a mailpiece. Only electronic, re- near the stamped serial number and mote-set meters may be used as loaner must meet these specifications: Code 3 meters. The city/state designation in of 9, ten digits long, with the first two the loaner meter indicia must show the digits being the manufacturer code location where the user’s mail will be (01—Ascom Hasler, 02—Pitney Bowes, deposited. 03—Francotyp-Postalia, 04—Friden (2) A customer may have possession Neopost) and the next eight digits of a loaner meter for a maximum of being the meter serial number, zero- five consecutive business days. When filled, right-justified. Additional the customer chooses to continue the barcode digits may be used for manu- use of a postage meter, the loaner facturer purposes if the Postal Service meter must be retrieved and a new is notified of the information to be en- meter must be installed under the cus- coded thereby. tomer’s license. (3) Exceptions to the formatting of (3) The manufacturer’s dealer or required labeling are determined on a branch representative (‘‘representa- case-by-case basis. Any deviation from tive’’) must have a USPS-issued meter standardized meter labeling require- user license to place a loaner meter. A ments must be approved in writing by single license per USPS district can be the Postal Service. used to issue loaner meters to cus- (s) A demonstration meter is typi- tomers in any of the different Post Of- cally used to acquaint a potential user fice service areas within that district. with the features of a meter as part of (4) Loaner meters must be reported the sales effort. The following proce- electronically to the USPS meter dures must be followed to implement tracking system when activated. A controls over demonstration meters: Form 3601–C, Postage Meter Activity (1) A demonstration meter may print Report, must be initiated to activate a only specimen indicia and must not be loaner meter under the representa- used to meter live mail. tive’s meter license. The licensee and (2) A demonstration meter must be meter location information on the recorded as such on internal manufac- form will show the representative rath- turer inventory records and must be er than the temporary user. However, tracked by model number, serial num- loaner meters may only be placed with ber, and physical location. If the me- customers who have been issued a ter’s status as a demonstration meter USPS meter license. changes, the meter must be adminis- (5) Representatives must record and tered according to the procedures that verify the accuracy of the ascending apply to its new status. and descending register readings when (3) A demonstration meter may be a loaner meter is placed with the cus- used only for demonstrations by a tomer. Any discrepancies detected dur- manufacturer’s dealer or branch rep- ing the verification process must be re- resentative and must remain under the ported immediately to the meter man- dealer’s or representative’s direct con- ufacturer, who will then notify Postage trol. A demonstration meter may not Technology Management. be left in the possession of the poten- (6) The representative is responsible tial customer under any circumstance. for resetting the loaner meter with

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postage and must arrange for reim- tions required by § 501.25 in a timely bursement directly with the customer. fashion is subject to an administrative (7) The representative maintains full sanction based on the investigative and responsibility for the loaner meter. As administrative costs and documented both a manufacturer’s representative revenue losses (net of any amount col- and a meter licensee, the representa- lected by the Postal Service from the tive is subject to the provision of Do- licensee or meter user) with interest mestic Mail Manual part P030 and Code per occurrence measured from the date of Federal Regulations part 501. As a li- on which the cost and/or loss occurred, censee, the representative assumes all as determined by the Postal Service. licensee responsibilities under USPS Sanctions shall be based on the costs meter regulations and must ensure and revenue losses that result from the that loaner meters are available for ex- manufacturer’s failure to comply with amination by the Postal Service on de- these requirements. mand and are examined in accordance with Postal Service policy. Any losses (c) The Postal Service may impose an incurred by the Postal Service as a re- administrative sanction under this sec- sult of fraudulent use of the loaner tion by issuing a written notice to the meter by the customer are the respon- manufacturer setting forth the facts sibility of the meter licensee, the cus- and reasons on which the determina- tomer, and the manufacturer. tion to impose the sanction is based. (8) When the customer returns the The Postal Service shall determine all meter, the dealer or branch representa- costs and losses. The notice shall ad- tive must record and verify the accu- vise the manufacturer of the date that racy of the ascending and descending the action shall take effect if a written register readings and inspect the defense is not presented within 30 cal- meter. Any discrepancies or indication endar days of receipt of the notice. of tampering or fraudulent use must be (d) The manufacturer may present to reported immediately to the meter the Postal Service a written defense to manufacturer, who will then notify the proposed action within 30 calendar Postage Technology Management. In days of receipt of the notice. The de- such circumstance, the meter must not fense must include all supporting evi- be used and must be returned to the dence and state with specificity the manufacturer’s QAR department via reasons for which the sanction should Registered Mail. not be imposed. (9) Loaner meters must be reported (e) After receipt and consideration of electronically to the USPS meter the written defense, the Postal Service tracking system when withdrawn from shall advise the manufacturer of the service. The dealer or branch rep- decision and the facts and reasons for resentative must prepare Form 3601–C, Postage Meter Activity Report, for it. The decision shall be effective on re- each loaner meter withdrawn. ceipt unless it provides otherwise. (f) The manufacturer may submit a [60 FR 30726, June 9, 1995, as amended at 66 written appeal of the decision within 30 FR 20745, Apr. 25, 2001. Redesignated at 66 FR calendar days of receiving the decision, 55097, Nov. 1, 2001, and amended at 67 FR 69138, Nov. 15, 2002] addressed to the manager of Retail and Customer Service, Postal Service § 501.24 Administrative sanction. Headquarters. The appeal must include (a) Meter for purposes of this section all supporting evidence and state with means any postage meter manufac- specificity the reasons that the manu- tured by an authorized postage meter facturer believes that the administra- manufacturer under § 501.1 that is not tive sanction was erroneously imposed. owned or leased by the Postal Service. The submission of an appeal stays the (b) An authorized manufacturer that, effectiveness of the sanction. without just cause, fails to conduct or (g) The imposition of an administra- perform adequately any of the controls tive sanction under this section does in § 501.22, to follow standardized lost not preclude any other criminal or and stolen meter incident reporting in civil statutory, common law, or admin- § 501.26, or to conduct any of the inspec- istrative remedy that is available by

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law to the Postal Service, the United them when necessary or desirable to States, or any other person or concern. prevent mechanical breakdown. [60 FR 30726, June 9, 1995. Redesignated at 66 [60 FR 30726, June 9, 1995. Redesignated at 66 FR 55097, Nov. 1, 2001] FR 55097, Nov. 1, 2001]

§ 501.25 Meter replacement. § 501.26 Inspection of meters in use. The manufacturer must keep its (a) The manufacturer must have all postage meters in proper operating its meters in service with licensees in- condition for licensees by replacing spected according to the following schedule. A high-volume mailer is defined as one who has annual metered postage in excess of $12,000.

(b) Manufacturer inspections must be (5) Check to determine that the post sufficiently thorough to determine office locking seal is in place and prop- that each meter is clean, in proper op- erly sealed and that the seal wire is erating condition, and recording its op- properly wound and tightly gripped by erations correctly and accurately. The the seal-locking mechanism, and tight- manufacturers must: ly pulled up to the lock cover or post. (1) Compare the meter serial number Ensure that the locking-seal identifica- on the meter with the serial number on tion number matches the seal number the source document (manufacturer’s recorded at the time of the last meter records). resetting. (2) Record the ascending and descend- (6) Check to determine that the lock cover properly protects the lock and ing register readings and calculate the has not been loosened, bent, or tam- total readings. Record the locking-seal pered with. identification number. (7) Complete the following, as appli- (3) Obtain the licensee’s PS Form cable to the specific meter model: 3602–A, Record of Meter Register Read- (i) Check to ensure that the meter ings, or equivalent, and a copy of the fits properly on the meter base. most recent PS Form 3603, Receipt for (ii) Check all breakoff screws to de- Postage Meter Setting, and verify the termine that no screw is missing or control total after the last setting with loose or shows signs of removal. the control total calculated during the (iii) Operate the dater and meter ad proof-of-register procedure. selector dials to test the dater, post- (4) Verify the accuracy of postage se- mark die, and meter ad plate. lection, denomination indicator wheels (iv) Check the alignment and condi- or electronic display, and denomination of engraving on the denomination tion printing wheels following the printing wheels, when visible. proof of registers by printing a .00 (v) Check the descending register meter stamp and then comparing the door for damage, pry marks, or scar- register readings with the recorded reg- ring. Make certain that the door can- ister readings. not be opened without unlocking it.

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(vi) Examine the meter drum for (6) Visit the licensee’s last known ad- damage, pry marks, or scarring. dress to see whether the building su- (vii) Examine the meter cover for pry perintendent or a neighbor knows the marks or scarring near the post office meter licensee’s new address. lock or breakoff screws, any drilled (7) Check the centralized meter in- holes, or any signs of attempted entry spection file for change of address no- into the internal mechanism of the tation. meter. (8) Mail a certified letter with return (viii) Examine the meter stamp die receipt to the licensee at the last for excessive wear, damage, breakage, known address with the notation or scars from prying, and the postage ‘‘Forwarding and Address Correction die retaining screws for signs of wear Requested.’’ to ensure that none is missing or shows (9) If new address information is ob- signs of removal. tained during these steps, any sched- (ix) Check the register, counter, and uled meter inspections must be com- display windows for breakage or cloudi- pleted promptly. ness. (b) If a meter is reported to be lost or (x) Obtain the signature of the li- stolen by the licensee, the manufac- censee to show that a meter inspection turer must, at a minimum, complete has taken place. the following actions: (8) Report immediately to the licens- (1) Ensure that the meter licensee ee’s licensing postmaster any irregu- has filed a police report and that copies larity in the operation of the meter or have been provided to the appropriate sign of improper use, and take steps to Inspection Service Contraband Postage replace or remove the meter. Identification Program (CPIP) spe- [60 FR 30726, June 9, 1995. Redesignated at 66 cialist. FR 55097, Nov. 1, 2001] (2) Withhold issuance of a replacement meter until the missing meter § 501.27 Meters not located. has been properly reported to the po- Upon learning that one or more of its lice and to the appropriate Inspection postage meters in service cannot be lo- Service CPIP specialist. cated, the manufacturer must under- (c) If the manufacturer later learns take reasonable efforts to locate the that the meter has been located and/or meters by following a series of Postal recovered, the manufacturer must up- Service-specified actions designed to date lost and stolen meter activity locate the meters. If these efforts are records, inspect the meter promptly, unsuccessful and a meter is determined initiate a postage adjustment or trans- to be lost or stolen, the manufacturer fer if appropriate, and check the meter must notify the Postal Service within out of service if a replacement meter 30 days by submitting a Lost and Sto- has been supplied to the meter li- len Meter Incident Report. censee. (a) If a licensee cannot be located, (d) If a meter reported to the Postal the manufacturer must, at a minimum, Service as lost or stolen is later lo- complete the following actions: cated, the manufacturer is responsible (1) Call the licensee’s last known for submitting a new Lost and Stolen telephone number. Meter Incident Report that references (2) Call directory assistance for the the initial report and outlines the de- licensee’s new telephone number. tails of how the meter was recovered. (3) Contact the licensee’s local post This report must be submitted to the office for current change of address in- Postal Service within 30 days of recov- formation. ery of the meter. The meter manufac- (4) Contact the local post office for a turer is also responsible for purging copy of the applicable PS Form 3610 lost and stolen meter reports that are and PS Form 3601–C. Verify the loca- provided on a periodic basis to the tion of the meter or licensee currently Postal Service ISSC for those meters maintained in those meter records. that have been recovered. (5) Contact the rental agency respon- (e) Any authorized manufacturer sible for the property where the li- that fails to comply with standardized censee was located, if applicable. lost and stolen reporting procedures

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and instructions is subject to an ad- Treasury are backed in full faith and ministrative sanction under § 501.23, as credit by the U. S. Treasury. determined by the Postal Service. (2) A CMRS licensee is required to have funds available on deposit with [60 FR 30726, June 9, 1995. Redesignated at 66 the Postal Service before resetting a FR 55097, Nov. 1, 2001] meter or the manufacturer may opt to provide a funds advance in accordance § 501.28 Protection and control of internal and security components. with paragraph (b)(4) of this section. The details of this deposit requirement Any physical or electronic access to are covered within the Acknowledg- the internal components of a meter, as ment of Deposit Requirement docu- well as any access to software or secu- ment. By signing this document, the li- rity parameters, must be conducted censee agrees to transfer funds to the within an approved factory or meter Postal Service through a lockbox bank, repair facility under the manufactur- as specified by the MRC, for the pur- er’s direct control and active super- pose of prepayment of postage. The vision. The Postal Service must have MRC representative must provide all checked a meter out of service before new CMRS licensees with this docu- any component, software, or security ment when a new account is estab- parameter is accessed or modified in lished. The document must be com- any way, or internal repairs are under- pleted and signed by the licensee and taken. This does not apply to Postal sent to the licensing post office by the Service-approved user, field, or Postal MRC. Service access to a specific internal (3) The MRC is required to incor- component or software. To prevent un- porate the following language into its authorized use, the manufacturer or meter rental agreements: any third party acting on its behalf llllllllllllllllllllllll must keep secure any equipment or other component that can be used to ACKNOWLEDGMENT OF DEPOSIT REQUIREMENT open or access the internal, electronic, By signing this meter rental agreement, you or secure components of a meter. represent that you have read the Acknowl- edgment of Deposit Requirement and are [68 FR 2699, Jan. 21, 2003] familiar with its terms. You agree that, upon execution of this Agreement with § 501.29 Computerized remote postage [the MRC], you will also be bound by all meter resetting. terms and conditions of the Acknowledg- (a) Description. The Computerized Re- ment of Deposit Requirement, as it may be mote Postage Meter Resetting System amended from time to time. (CMRS) permits postal licensees using llllllllllllllllllllllll specially designed postage meters to (4) The licensee is permitted to make reset their meters at their places of deposits in one of three ways: check, business via telephonic communica- electronic funds transfer (or wire tions. Authorized meter manufacturers transfer), or automated clearinghouse that offer CMRS services are known as (ACH) transfer. These deposits are to meter resetting companies (MRCs). To be processed by the lockbox bank. The reset a meter, the licensee telephones lockbox bank must wire daily all avail- the MRC and provides identifying data. able balances to the Postal Service. Before proceeding with the setting (5) If the MRC chooses to offer ad- transaction, the MRC must verify the vancement of funds to licensees, the data and ascertain from its own files MRC is required to maintain a deposit whether the licensee has sufficient with the Postal Service equal to at funds on deposit with the Postal Serv- least 1 day’s average funds advanced. ice. If the funds are available or the The total amount of funds advanced to manufacturer opts to provide a funds licensees on any given day may not ex- advance in accordance with paragraph ceed the amount the manufacturer has (b)(5) of this section, the MRC may on deposit with the Postal Service. The complete the setting transaction. MRC is not authorized to perform set- (b) Deposits with the Postal Service. (1) tings in excess of the licensee’s balance Deposits in the Postal Service Fund at in any other circumstance. The Postal

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Service shall not be liable for any pay- readings. The manufacturer must ment made by the MRC on behalf of a verify that the information provided to licensee that is not reimbursed by the the licensee is consistent with its licensee because the MRC is solely re- records. The MRC must also verify that sponsible for the collection of ad- there are sufficient funds in the licens- vances. ee’s account to cover the postage set- (c) Revenue protection. The Postal ting requested before proceeding with Service shall conduct periodic assess- the setting transaction (unless the ments of the revenue protection safe- manufacturer opts to provide the li- guards of each MRC system and shall censee a funds advance). Immediately reserve the right to revoke an MRC’s following each such resetting, the MRC authorization if the CMRS system does must charge the licensee’s account for not meet all requirements set forth by the amount of the postage reset. After the Postal Service. In addition, the the completion of each transaction, the Postal Service shall reserve the right manufacturer must promptly provide to suspend the operation of the MRC the licensee with a statement docu- for any serious operational deficiency menting the transaction and the bal- that is likely to result in the loss of ance remaining in the licensee’s ac- funds to the Postal Service as provided count. As an alternative, the manufac- in § 501.12. turer may provide a statement month- (d) Equipment. The meters used in the ly that documents all transactions for computerized resetting system must the period and that shows the balance conform to the specifications in § 501.6. in the licensee’s account after each They must be tested under § 501.7 and transaction. conform to the safeguards, distribu- (4) Each banking day, the lockbox tion, and maintenance requirements of bank is to transfer, by 10 a.m. local §§ 501.15 through 501.23 to protect the time, amounts payable to the Postal Postal Service against loss of revenue Service from the transactions during from fraud, manipulation, the previous day to a designated Fed- misoperation, or breakdown. eral Reserve Bank. The MRC must (e) Financial operation. (1) Before the maintain licensee service activity data Postal Service’s selection of a lockbox to accept and respond to inquiries from provider, the MRC must establish a licensees concerning the status of their lockbox account in the name of the payments. The lockbox bank must pro- Postal Service at a bank or banks ap- vide the MRCs with a nationwide, toll- proved by the Postal Service to handle free telephone number for licensee the deposits of licensees. The MRC service. The Postal Service lockbox must make arrangements with such bank must assign a dedicated senior banks under which the banks are to in- level licensee service representative to form the manufacturer of the amounts handle all inquiries and investigations. of licensee funds received each banking (5) The Postal Service requires that day. the MRCs publicize to all CMRS licens- (2) The Postal Service lockbox bank ees the following payment options processes the CMRS deposits daily, (listed in order of preference): consolidates the data, and performs a (i) Automated clearinghouse (ACH) direct file transmission to each MRC. debits/credits. The daily deposit processing cutoff (ii) Electronic funds transfers (wire times and the automated file trans- transfers). mission times are coordinated inde- (iii) Checks. pendently with each of the MRCs. Man- (6) Licensee check deposits must be ufacturers must ensure that their data mailed to a predetermined post office center computers are programmed to box address specified by the lockbox reflect each licensee deposit and track bank and accompanied by a preencoded all licensee activity. deposit ticket. The Postal Service pro- (3) The MRC must require each li- vides CMRS customers with deposit censee that requests meter resetting to tickets for inclusion with check pay- provide the meter serial number, the ments. At the time a new account is licensee account number, and the me- opened, a licensee not possessing a ter’s ascending and descending register preencoded deposit slip must present

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the initial payment to the MRC rep- the licensee account immediately so resentative who in turn assigns the li- that the licensee is unable to reset the censee a new account number and meter until the Postal Service receives manually prepares a deposit ticket to payment in full for the check returned. be mailed to the lockbox bank for proc- The lockbox bank provides collection essing. services for returned checks on behalf (7) If a licensee prefers to use a pay- of the Postal Service. The Postal Serv- ment form other than a check, the li- ice lockbox bank notifies the MRC censee must contact the MRC rep- once this item is paid. The MRC then resentative for instructions, and the releases the account for activity. MRC must provide the licensee with (f) Refunds. The Postal Service issues the appropriate information regarding a refund to a licensee for any unused the use of ACH debits/credits and elec- postage in a meter. Refunds of licensee tronic funds transfers (wire transfers). balances maintained by the Postal (8) Returned checks and ACH debits Service in the Postal Service fund are are the responsibility of the Postal intended to be made directly to the li- Service. In the case of a returned censee by the lockbox bank within 48 check, the Postal Service lockbox hours after receipt of a licensee’s re- bank, after an automatic second pre- quest. sentment, advises the MRC of the ac- (g) Reports. The manufacturer must count in question so that the MRC data provide reports according to the fol- file can be locked. The MRC must lock lowing schedule:

Report description Content Frequency Medium

MRC CMRS Daily Activity Report Summary of Business Activity .... Daily ...... Paper (facsimile). Revenue Allocation Report ...... ZIP Code of Licensing Post Of- Postal Accounting Period ...... Electronic. fice; Amount of Resettings. Postage Refunds Report ...... Customer ID; ZIP Code; Amount Daily (by request only) ...... Paper. of Refund. Funds Advanced Report ...... Customer ID; ZIP Code; Amount Daily (by request only) ...... Paper. of Funds Advanced.

(h) Inspection of records and facilities. information to communicate with The manufacturer must make its fa- USPS customers through any new re- cilities that handle the operation of tail channels, and for the following the computerized resetting system and purposes: all records about the operation of the (1) Issuance (including re-licensing, system available for inspection by rep- renewal, transfer, revocation or denial, resentatives of the Postal Service at as applicable) of a meter license to a all reasonable times. postal patron that uses a postage meter, and communications with re- [60 FR 30726, June 9, 1995. Redesignated at 66 spect to the status of such license. FR 55097, Nov. 1, 2001] (2) Disclosure to a meter manufacturer of the identity of any meter re- § 501.30 Licensee information. quired to be removed from service by (a) As stated in § 501.22(b) manufac- that meter manufacturer, and any re- turers must transmit electronically, lated licensee data, as the result of rev- copies of completed PS Forms 3601–A, ocation of a meter license, questioned Application for a License to Lease and accurate registration of that meter, or Use Postage meters, to the designated de-certification by the Postal Service Postal Service central data processing of any particular class or model of facility. postage meter. (b) The Postal Service may use appli- (3) Use for the purpose of tracking cant information in the administration the movement of meters between a of postage meter and metered mail ac- meter manufacturer and its customers tivities, and to communicate with cus- and communications to a meter manu- tomers who may no longer be visiting a facturer (but not to any third party traditional USPS retail outlet. The other than the applicant/licensee) con- Postal Service will also use applicant cerning such movement. The term

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‘‘meter manufacturer’’ includes a (12) To transmit to a manufacturer meter manufacturer’s dealers and all applicant and postage meter infor- agents. mation pertaining to that manufactur- (4) To transmit general information er’s customers and postage meters that to all meter customers concerning rate may be necessary to permit such meter and rate category changes imple- manufacturer to synchronize its com- mented or proposed for implementa- puter meter database with information tion by the United States Postal Serv- contained in the computer files of the ice. Postal Service, including but not lim- (5) To advertise Postal Service serv- ited to computerized data that reside ices relating to the acceptance, proc- in Postal Service meter management essing and delivery of, or postage pay- databases. ment for, metered mail. (13) Subject to the conditions stated (6) To allow the Postal Service to herein, to communicate in oral or writ- communicate with USPS customers on ten form with any or all applicants any products, services and other informa- information that the Postal Service tion otherwise available to USPS cus- views as necessary to enable the Postal tomers through traditional retail out- Service to carry out its duties and pur- lets. poses under part 501. (7) Any internal use by Postal Serv- [63 FR 53812, Oct. 7, 1998. Redesignated at 66 ice personnel, including identification FR 55097, Nov. 1, 2001] and monitoring activities relating to postage meters, provided that such use PART 551—SEMIPOSTAL STAMP does not result in the disclosure of ap- PROGRAM plicant information to any third party or will not enable any third party to Sec. use applicant information for its own 551.1 Semipostal Stamp Program. purposes; except that the applicant in- 551.2 Semipostal stamps. formation may be disclosed to other 551.3 Procedure for selection of causes and recipient executive agencies. governmental agencies for law enforce- 551.4 Submission requirements and selec- ment purposes as provided by law. tion criteria. (8) Identification of authorized meter 551.5 Frequency and other limitations. manufacturers or announcements of 551.6 Pricing. de-authorization of an authorized 551.7 Calculation of funds for recipient exec- meter manufacturer, or provision of utive agencies. currently available public information, 551.8 Cost offset policy. where an authorized meter manufac- AUTHORITY: 39 U.S.C. 101, 201, 203, 401, 403, turer is identified. 404, 410, 416, and the Semipostal Authoriza- (9) To promote and encourage the use tion Act, Pub. L. 106–253, 114 Stat. 634 (2000), as amended by Pub. L. 107–67, section 652, 115 of postage meters, including remotely Stat. 514 (2001). set postage meters, as a form of postage payment, provided that the same SOURCE: 66 FR 31826, June 12, 2001, unless information is provided to all meter otherwise noted. customers, and no particular meter § 551.1 Semipostal Stamp Program. manufacturer will be recommended by the Postal Service. The Semipostal Stamp Program is (10) To contact meter customers in established under the Semipostal Au- cases of revenue fraud or revenue secu- thorization Act, Public Law 106–253, 114 rity except that any meter customer Stat. 634 (2000), as amended by Public suspected of fraud shall not be identi- Law 107–67, section 652, 115 Stat. 514 fied to other meter customers. (2001). The Office of Stamp Services has primary responsibility for admin- (11) Disclosure to a meter manufac- istering the Semipostal Stamp Pro- turer of applicant information per- gram. The Office of Accounting, Fi- taining to that meter manufacturer’s nance, Controller has primary respon- customers that the Postal Service sibility for the financial aspects of the views as necessary to enable the Postal Semipostal Stamp Program. Service to carry out its duties and purposes. [67 FR 5215, Feb. 5, 2002]

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§ 551.2 Semipostal stamps. the Office of Stamp Services (202) 268– Semipostal stamps are stamps that 2319. are sold for a price that exceeds the (d) The Citizens’ Stamp Advisory postage value of the stamp. The dif- Committee will review eligible pro- ference between the price and postage posals forwarded by the office of Stamp value of semipostal stamps, also known Services. Based on the proposals sub- as the differential, less an offset for mitted, the Citizens’ Stamp Advisory reasonable costs, as determined by the Committee will make recommenda- Postal Service, consists of a contributions on a cause and eligible recipient tion to fund causes determined by the executive agency(ies) to the post- Postal Service to be in the national master general. If no eligible proposals public interest and appropriate. Funds are recommended, the Postal Service are to be transferred to selected recipi- will solicit additional proposals ent executive agencies, as defined through publication of a notice in the under 5 U.S.C. 105. The office of Stamp FEDERAL REGISTER and through other Services determines the print quan- means as it determines in its discre- tities of semipostal stamps. The use of tion. semipostal stamps shall be voluntary (e) Meetings of the Citizens’ Stamp on the part of postal patrons. Advisory Committee are closed, and deliberations of the Citizens’ Stamp § 551.3 Procedure for selection of Advisory Committee are predecisional causes and recipient executive agencies. in nature. (f) The postmaster general will act on The Postal Service is authorized to the recommendations of the Citizens’ select causes and recipient executive Stamp Advisory Committee. The deci- agencies to receive funds raised sion of the postmaster general shall through the sale of semipostal stamps. consist of the final agency decision. The procedure for selection of causes (g) The office of Stamp Services will and recipient executive agencies is as follows: notify the executive agency(ies) in (a) In advance of the issuance of a writing of a decision designating the semipostal stamp, the office of Stamp agency(ies) as recipients of funds from Services will publish a request for pro- a semipostal stamp. posals in the FEDERAL REGISTER invit- (h)(1) A proposal submission may des- ing interested persons to submit pro- ignate one or two recipient executive posals for a cause and recipient execu- agencies to receive funds, but if more tive agencies for a future semipostal than one executive agency is proposed, stamp. The notice will specify the be- the proposal must specify the percent- ginning and ending dates of the period age shares of differential revenue, net during which proposals may be sub- of the Postal Service’s reasonable mitted. The notice will also specify the costs, to be given to each agency. If approximate period in which the percentage shares are not specified, it semipostal stamp for which proposals is presumed that the proposal intends are solicited is to be sold. The office of that the funds be split evenly between Stamp Services may publicize the re- the agencies. If more than two recipi- quest for proposals through other ent executive agencies are proposed to means, as it determines in its discre- receive funds and the proposal is se- tion. lected, the proposal is treated as pre- (b) Proposals will be received by the scribed by paragraph (h)(3) of this sec- office of Stamp Services, which will re- tion. view each proposal under § 551.4. (2) If more than one proposal is sub- (c) Those proposals that the office of mitted for the same cause, and the pro- Stamp Services determines satisfy the posals would have different executive requirements of § 551.4 will be for- agencies receiving funds, the funds warded for consideration by the Citi- would be evenly divided among the ex- zens’ Stamp Advisory Committee, ecutive agencies, with no more than which is described in Administrative two agencies being designated to re- Support Manual (ASM) section 644.5. ceive funds, as determined by the vice For availability of ASM 644.5, contact president and consumer advocate.

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(3) Within 10 days of receipt of a no- (4) The submission must demonstrate tice indicating that it has been se- that the cause to be funded has broad lected to receive funds, a selected agen- national appeal, and that the cause is cy could request a proportionately in the national public interest and fur- larger share if it can demonstrate that thers human welfare. Respondents are its share of total funding of the cause encouraged to submit supporting docu- from other sources (excluding any addi- mentation demonstrating that funding tional funds available as a result of the the cause would benefit the national semipostal stamp) exceeds that of the public interest. other recipient executive agency. The (5) The submission must be accom- request must be in writing and must be panied by a letter from an executive sent to the manager of Stamp Services. agency or agencies on agency letter- In those cases, the determination re- head representing that: garding the proportional share to be di- (i) it is an executive agency as de- vided among the recipient executive fined under 5 U.S.C. 105, agencies is made by the Postal Serv- (ii) it is willing and able to imple- ice’s vice president and consumer advo- ment the proposal, and cate. (iii) it is willing and able to meet the (i) As either a separate matter, or in requirements of the Semipostal Au- combination with recommendations on thorization Act, if it is selected. The a cause and a recipient executive agen- letter must be signed by a duly author- cy(ies), the Citizens’ Stamp Advisory ized representative of the agency. Committee will recommend to the postmaster general a design (i.e., art- (b) Proposal submissions become the work) for the semipostal stamp. The property of the Postal Service and are postmaster general will make a final not returned to interested persons who determination on the design to be fea- submit them. Interested persons who tured. submit proposals are not entitled to any remuneration, compensation, or § 551.4 Submission requirements and any other form of payment, whether selection criteria. their proposal submissions are selected (a) Proposals on recipient executive or not, for any reason. agencies and causes must satisfy the (c) The following persons are dis- following requirements: qualified from submitting proposals: (1) Interested persons must timely (1) Any contractor of the Postal submit an original and 20 copies of the Service that may stand to benefit fi- proposal. For purposes of this section, nancially from the Semipostal Stamp interested persons include, but are not Program; or limited to, individuals, corporations, (2) Members of the Citizens’ Stamp associations, and executive agencies Advisory Committee and their imme- under 5 U.S.C. 105. Interested persons diate families, and employees or con- submitting proposals are also encour- tractors of the Postal Service, and aged to submit an Adobe Acrobat (.pdf) their immediate families, who are in- file saved on a 3.5 inch diskette or CD– volved in any decision-making related ROM diskette containing the entire to causes, recipient agencies, or art- contents of the submission. In extraor- work for the Semipostal Stamp Pro- dinary circumstances, the office of gram. Stamp Services may, in its discretion, (d) Consideration for evaluation will consider a late-filed proposal. not be given to proposals that request (2) The proposal submission must be support for the following: Anniver- signed by the individual or a duly au- saries; public works; people; specific thorized representative and must pro- organizations or associations; commer- vide the mailing address, phone num- cial enterprises or products; cities, ber, fax number (if available), and E- towns, municipalities, counties, or sec- mail address (if available) of a des- ondary schools; hospitals, libraries, or ignated point of contact. similar institutions; religious institu- (3) The submission must describe the tions; causes that do not further cause and the purposes for which the human welfare; or causes determined funds would be spent. by the Postal Service or the Citizens’

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Stamp Advisory Committee to be in- otherwise regularly apply, plus a dif- consistent with the spirit, intent, or ferential of not less than 15 percent. history of the Semipostal Authoriza- The price of a semipostal stamp shall tion Act. be an amount that is evenly divisible (e) Artwork and stamp designs should by five. For purposes of this provision, not be submitted with proposals. the First-Class Mail single-piece first- ounce rate of postage will be consid- § 551.5 Frequency and other limita- ered the rate of postage that would tions. otherwise regularly apply. (a) The Postal Service is authorized (b) The prices of semipostal stamps to issue semipostal stamps for a 10- are determined by the Governors of the year period beginning on the date on United States Postal Service in accord- which semipostal stamps are first sold ance with the requirements of 39 U.S.C. to the public under 39 U.S.C. 416. The 416. 10-year period will commence after the [66 FR 31826, June 12, 2001, as amended at 67 sales period of the Breast Cancer Re- FR 5216, Feb. 5, 2002] search stamp is concluded in accordance with the Stamp Out Breast Can- § 551.7 Calculation of funds for recipi- cer Act, and as amended by the ent executive agencies. Semipostal Authorization Act, the (a) The Postal Service is to deter- Breast Cancer Research Stamp Act of mine its reasonable costs in executing 2001, and Public Law 107–67, section 650, its responsibilities pursuant to the 115 Stat. 514. The Office of Stamp Serv- Semipostal Authorization Act, as spec- ices will determine the date of com- ified in § 551.8. These costs are offset mencement of the 10-year period. against the revenue received through (b) The Postal Service will offer only sale of each semipostal stamp in excess one semipostal stamp for sale at any of the First-Class Mail single-piece given time during the 10-year period. first-ounce rate in effect at the time of (c) The sales period for any given purchase. semipostal stamp is limited to no more (b) Any reasonable costs offset by the than 2 years, as determined by the of- Postal Service shall be retained by it, fice of Stamp Services. along with revenue from the sale of the (d) Prior to or after the issuance of a semipostal stamps, as recorded by sales given semipostal stamp, the Postal units through the use of a specially Service reserves the right to withdraw designated account. the semipostal stamp from sale, or to (c) The Postal Service is to pay des- reduce the sales period, if, inter alia: ignated recipient executive agency(ies) (1) Its sales or revenue statistics are the remainder of the differential rev- lower than expected, enue less an amount to recover the rea- (2) The sales or revenue projections sonable costs of the Postal Service, as are lower than previously expected, or determined under § 551.8. (3) The cause or recipient executive (d) The amounts for recipient execu- agency does not further, or comply tive agencies are transferred in a man- with, the statutory purposes or re- ner and frequency determined by mu- quirements of the Semipostal Author- tual agreement, consistent with the re- ization Act. The decision to withdraw a quirements of 39 U.S.C. 416. semipostal stamp is to be made by the postmaster general, after review of § 551.8 Cost offset policy. supporting documentation prepared by (a) Postal Service policy is to recover the office of Stamp Services. from the differential revenue for each [66 FR 31826, June 12, 2001, as amended at 67 semipostal stamp those costs that are FR 5215, Feb. 5, 2002] determined to be attributable to the semipostal stamp and that would not § 551.6 Pricing. normally be incurred for commemora- (a) The Semipostal Authorization tive stamps having similar sales; phys- Act, as amended by Public Law 107–67, ical characteristics; and marketing, section 652, 115 Stat. 514 (2001), pre- promotional, and public relations ac- scribes that the price of a semipostal tivities (hereinafter ‘‘comparable stamp is the rate of postage that would stamps’’).

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

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PART 601—PROCUREMENT OF complished in accordance with policies PROPERTY AND SERVICES prescribed either in the Postal Con- tracting Manual or the Procurement Sec. Manual, depending upon the implemen- 601.100 Procurement Manual; incorporation tation schedule established for an indi- by reference. vidual procurement entity. 601.101 Effective date. 601.102 Applicability and coverage. § 601.102 Applicability and coverage. 601.103 Content of Procurement Manual. 601.104 Availability of Procurement Manual. (a) The Procurement Manual applies 601.105 Amendments to the Procurement to all Postal Service procurements of Manual. property and services. AUTHORITY: 5 U.S.C. 552(a); 39 U.S.C. 401, (b) When fully effective, the Procure- 404, 410, 411, 2008, 5001–5605. ment Manual supersedes the Postal

SOURCE: 53 FR 24267, June 28, 1988, unless Contracting Manual. otherwise noted. § 601.103 Content of Procurement § 601.100 Procurement Manual; incor- Manual. poration by reference. The Procurement Manual consists of Section 552(a) of title 5, U.S.C., relat- 12 chapters and 6 appendices, as fol- ing to public information requirements lows: of the Administrative Procedure Act, (a) Chapter 1—Authority, Responsi- provides in pertinent part that ‘‘* * * bility, and Policy—covers general pro- matter reasonably published in the curement policies, including the dele- FEDERAL REGISTER when incorporated gation of procurement authority and by reference therein with the approval responsibility. of the Director of the Federal Reg- (b) Chapter 2—Procurement ister.’’ In conformity with that provi- Planning—establishes requirements sion, with 39 U.S.C. section 410(b)(1), and procedures for advance procure- and as provided in this part, the U.S. ment planning including source selec- Postal Service hereby incorporates by tion plans, and policies regarding spec- reference its Procurement Manual ifications and statements of work. (PM), Publication 41, a loseleaf publication. (c) Chapter 3—Sources—covers sources of supplies and services and § 601.101 Effective date. their priority, including Postal Service The provisions of the Procurement sources, other Government agencies, Manual are applicable, effective June 1, and commercial sources. It establishes 1988, with respect to all covered pro- requirements for publicizing procure- curement activities of the Postal Serv- ments and covers matters regarding ice. However, the Procurement Manual contractor qualifications. is being implemented on the following (d) Chapter 4—Purchasing Methods— phased basis: Headquarters Office of covers competitive purchasing proce- Procurement and Office of Design and dures, including solicitation, evalua- Construction Management—June 1, tion of proposals, price negotiation, 1988; Mail Processing Department— and contractor selection. It includes July 1, 1988; Procurement and Material simplified procedures for purchases Management Service Centers and Serv- below certain dollar ceilings and estab- ice Offices, U.S. Postal Service Field lishes limitations on noncompetitive Divisions, Facilities Service Centers purchasing. It sets forth rules for filing and Facilities Service Offices—August and considering protests against Postal 1, 1988. During the implementation Service contracting procedures and phase procurement actions will be ac- awards.

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(e) Chapter 5—Contract Pricing—de- (n) Appendix B—Contract Clauses— scribes the types of contracts author- prescribes certain clauses not pre- ized for Postal Service use and the cir- scribed elsewhere in the Manual and cumstances for their use. It establishes contains all clauses prescribed in the policies and procedures for price eval- Manual. uation, including price analysis, cost (o) Appendix C—Forms and formats— analysis, and principles for deter- states that the forms and computer mining the allowability of costs. generated formats necessary to imple- (f) Chapter 6—Contract ment and supplement the manual are Administration—Describes responsibil- in the Procurement Handbook, the Fa- ities and procedures for the adminis- cilities Design and Construction Hand- tration of Postal Service contracts, book, the Mail Transportation Pro- and for their modification and termi- curement Handbook, and other publica- nation. tions and directives referenced in the (g) Chapter 7—Bonds, Insurance, and Manual or in these handbooks. Taxes—sets forth policies and proce- (p) Appendix D—Rules of Practice in dures governing bonds and insurance Proceedings Relative to Debarment under contracts, and discusses the ap- and Suspension from Contracting—con- plicability of Federal, State, and local tains a reprint of the rules of practice taxes. issued by the Judicial Officer as 39 CFR (h) Chapter 8—Special Categories of Part 957. Contracts—covers various types of con- (q) Appendix E—Rules of Practice Be- tracts subject to special procedures and fore the Postal Service Board of Con- describes the authorities of officials tract Appeals—contains a reprint of authorized to issue policy and proce- the rules of practice issued as 39 CFR dural directives supplementing the Part 955. Procurement Manual. (r) Appendix F—Procurement Manual (i) Chapter 9—Patents and Data Index—is an alphabetical index of im- Rights—covers the acquisition of pat- portant words and terms used in the ents, copyrights, and other rights in Manual. data. (j) Chapter 10—Socioeconomic § 601.104 Availability of Procurement policies—contains procedures for con- Manual. tracting with minority-owned businesses, and policies carrying out the (a) Copies of the Procurement Man- requirements of certain statutes, in- ual, Publication 41, may be purchased, cluding the Contract Work Hours and and changes to the Manual may be ob- Safety Standards Act, the Davis-Bacon tained, from the Superintendent of Act, and the Service Contract Act. It Documents, U.S. Government Printing establishes Postal Service policy and Office, Washington, DC 20402–9325. The preference regarding purchase of do- Manual may be examined during nor- mestic-source products and services. mal business hours at the U.S. Postal (k) Chapter 11—Facilities and Re- Service Library, 475 L’Enfant Plaza lated Services—covers the specialized West SW., Washington, DC 20260–1641, procedures involved in the procure- and at the following Postal Service ment of construction, the acquisition Procurement and Materiel Manage- of real property, and leases. ment Service Centers: (l) Chapter 12—Mail Transportation— Central Region, 433 West Van Buren St., Chi- prescribes policies and procedures for cago, IL 60699–6260. the procurement of mail transpor- Eastern Region, 1845 Walnut St., Philadel- tation and directly related ancillary phia, PA 19197–6260. services by contract. Northeast Region, 8 Griffin Road North, (m) Appendix A—Solicitations—pre- Windsor, CT 06006–6260. scribes the forms, format, and provi- Southern Region, 1407 Union Ave., Memphis, sions to be used in preparing solicita- TN 38166–6260. tions, and the establishment and main- Western Region, 850 Cherry Ave., San Bruno, CA 94099–6260. tenance of solicitation mailing lists. It contains all solicitation provisions pre- (b) A copy of the Procurement Man- scribed in the Manual. ual is on file with the Director, Office

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of the Federal Register, National Ar- (a) Promote the economic, oper- chives and Records Administration, 800 ational, and competitive well-being of North Capitol Street, NW., suite 700, the Postal Service; Washington, DC. (b) Limit restrictions on the use of Postal Service intellectual property to § 601.105 Amendments to the Procure- a minimum consistent with its statu- ment Manual. tory obligations; Notice of changes made in the Pro- (c) Assure that all potential users are curement Manual will be periodically treated fairly; published in the FEDERAL REGISTER. (d) Give due regard to other relevant The text of such changes will be filed considerations. with the Director, Office of the Federal Register. Subscribers to the Basic Man- § 602.2 Office of Licensing, Philatelic ual will receive from time to time the and Retail Services Department. amendments from the Postal Service In accordance with the foregoing pol- in the form of Procurement Manual icy, the Postal Service Office of Licens- Circulars or in Postal Bulletin notices. ing, Philatelic and Retail Services De- These amendments will be cumulated partment, formulates the program for in a periodic Transmittal Letter which the management of the Postal Serv- subscribers will receive from the Gov- ice’s rights in intellectual property ernment Printing Office. (except patents and technical data rights in Postal Service contracts, AMENDMENTS TO PROCUREMENT MANUAL which is the responsibility of Postal Service contracting officers). The Of- Transmittal Federal Register letter Dated publication fice of Licensing and the contracting officers identify intellectual properties 2 ...... June 1, 1988 ...... 53 FR 24265 in which the Postal Service should se- 3 ...... December 1, 1989 ...... 54 FR 48243 cure its rights. It receives and makes 4 ...... January 1, 1991 ...... 56 FR 2138 5 ...... February 1, 1992 ...... 57 FR 31129 recommendations for the disposition of applications for use of Postal Service intellectual property. It periodically [53 FR 24267, June 28, 1988, as amended at 54 reviews the intellectual property rights FR 48243, Nov. 22, 1989; 56 FR 2138, Jan. 22, 1991; 57 FR 31129, July 14, 1992] portfolio to determine the extent of the utilization of protected properties and to recommend relinquishment of own- PART 602—INTELLECTUAL PROPERTY ership when it considers ownership no RIGHTS OTHER THAN PATENTS longer desirable. It is advised by the Office of Procurement of performance Sec. under license agreements and makes 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 AUTHORITY: 39 U.S.C. 401(5). unauthorized use of intellectual property. SOURCE: 43 FR 42250, Sept. 20, 1978, unless otherwise noted. [56 FR 58859, Nov. 22, 1991]

§ 602.1 General principles. § 602.3 Requests for use. It is the policy of the Postal Service (a) Inquiries concerning licenses to to secure full ownership rights for its use Postal Service trademarks or serv- intellectual properties other than pat- ice marks, copyright materials and in- ents (hereinafter, intellectual prop- tellectual property other than patents erties) having significant economic or and technical data rights in Postal other business value, except when to do Service contracts must be sent to: Of- so would be contrary to the best inter- fice of Licensing, Philatelic and Retail est of the Postal Service. Intellectual Services Department, US Postal Serv- property rights shall be acquired and ice, 475 L’Enfant Plaza SW., Wash- managed so as to: ington, DC 20260–6700.

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(b) Requests for the use of intellectual property are forwarded to the Of- tual property should be submitted on fice of Licensing for the negotiation of the form provided by the Office of Li- a satisfactory license agreement. censing to the licensing advisor des- (e) Each license agreement is subject ignated by that Office. Each request is to legal review. considered in a timely fashion in ac- (f) Requesters are promptly advised cordance with the policy established in of unapproved requests. this section. Requests favorably con- A transmittal letter effecting the sidered are forwarded to the Office of Licensing for approval. above changes to the Domestic Mail (c) Approved requests contemplating Manual will be published and trans- a permissive (no fee) use of the intel- mitted automatically to subscribers. lectual property are evidenced by a let- Notice of issuance of the transmittal ter of permission furnished to the re- letter will be published in the FEDERAL quester. REGISTER as provided by 39 CFR 111.3. (d) Approved requests contemplating [56 FR 58859, Nov. 22, 1991] a contractual (fee) use of the intellec-

SUBCHAPTER I [RESERVED]

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PART 760—APPLICABILITY OF TREA- of the United States acting on behalf of SURY DEPARTMENT REGULATIONS 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 authorizing resolution of the Board of (39 U.S.C. Secs. 401, 402, 2005) Governors of the Postal Service on [37 FR 211, Jan. 7, 1972] 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. company which is a member of a Re- 761.1 Definition of terms. serve bank. 761.2 Authority of Reserve Banks. 761.3 Scope and effect of book-entry proce- § 761.2 Authority of Reserve Banks. dure. 761.4 Transfer or pledge. Each Reserve Bank is hereby author- 761.5 Withdrawal of Postal Service securi- ized, in accordance with the provisions ties. of this part, to (a) issue book-entry 761.6 Delivery of Postal Service securities. Postal Service securities by means of 761.7 Registered bonds and notes. entries on its records which shall in- 761.8 Servicing book-entry Postal Service clude the name of the depositor, the securities; payment of interest, payment amount, the loan title (or series) and at maturity or upon call. maturity date; (b) effect conversions AUTHORITY: 39 U.S.C. 401, 402, 2005. between book-entry Postal Service se- SOURCE: 37 FR 16801, Aug. 19, 1972, unless curities and definitive Postal Service otherwise noted. securities; (c) otherwise service and maintain book-entry Postal Service se- § 761.1 Definition of terms. curities; and (d) issue a confirmation of In this part, unless the context oth- transaction in the form of a written ad- erwise requires or indicates: vice (serially numbered or otherwise) (a) Reserve Bank means the Federal which specifies the amount and de- Reserve Bank of New York (and any scription of any securities; that is, loan other Federal Reserve Bank which title (or series) and maturity date, sold agrees to issue Postal Service securi- or transferred, and the date of the ties in book-entry form) as fiscal agent transaction.

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§ 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 both as revised and amended, and may this part, including securities in book- apply the book-entry procedure, with entry form under § 761.3(a)(3), is ef- the approval of the Secretary of the fected, and a pledge is perfected, by

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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 purposes of acknowledgment of transfers [37 FR 16801, Aug. 19, 1972, as amended at 38 thereof under this paragraph. Where FR 12919, May 17, 1973] transferable Postal Service securities § 761.5 Withdrawal of Postal Service are recorded on the books of a deposi- securities. tary (a bank, banking institution, financial firm, or similar party, which (a) A depositor of book-entry Postal regularly accepts in the course of its Service securities may withdraw them business Postal Service securities as a from a Reserve Bank by requesting de- custodial service for customers, and livery of like definitive Postal Service maintains accounts in the names of securities to itself or on its order to a such customers reflecting ownership of transferee. or interest in such securities) for ac- (b) Postal Service securities which count of the pledgor or transferor are actually to be delivered upon with- thereof and such securities are on de- drawal may be issued either in reg- posit with a Reserve bank in a book- istered or in bearer form. entry account hereunder, such depositary shall, for purposes of perfecting a § 761.6 Delivery of Postal Service secu- pledge of such securities or effecting rities. delivery of such securities to a pur- A Reserve Bank which has received chaser under applicable provisions of Postal Service securities and effected law, be the bailee to which notification pledges, made entries regarding them, of the pledge of the securities may be or transferred or delivered them ac- given or the third person in possession cording to the instructions of its de- from which acknowledgment of the positor is not liable for conversion or holding of the securities for the pur- for participation in breach of fiduciary chaser may be obtained. A Reserve duty even though the depositor had no bank will not accept notice or advice of right to dispose of or take other action a transfer or pledge effected or per- in respect of the securities. A Reserve fected under this paragraph, and any Bank shall be fully discharged of its such notice or advice shall have no ef- obligations under this part by the defect. A Reserve bank may continue to livery of Postal Service securities in deal with its depositor in accordance definitive form to its depositor or upon with the provisions of this part, not- the order of such depositor. Customers withstanding any transfer or pledge ef- of a member bank or other depositary fected or perfected under this para- (other than a Reserve Bank) may ob- graph. tain Postal Service securities in defini- (c) No filing or recording with a pub- tive form only by causing the depositor lic recording office or officer shall be of the Reserve Bank to order the with- necessary or effective with respect to drawal thereof from the Reserve Bank.

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§ 761.7 Registered bonds and notes. 762.22 Definitions. 762.23 General rules. No formal assignment shall be re- 762.24 Guaranty of endorsements. quired for the conversion to book-entry 762.25 Reclamation of amounts of paid dis- Postal Service securities of registered bursement postal money orders. Postal Service securities held by a Re- 762.26 Postal facilities not to cash disburse- serve Bank (in either its individual ca- ment postal money orders. pacity or as fiscal agent of the United 762.27 Processing of disbursement postal money orders by Federal Reserve Banks. States) on the effective date of this 762.28 Release of original disbursement part for any purpose specified in postal money orders. § 761.3(a). Registered Postal Service se- 762.29 Endorsement of disbursement postal curities deposited thereafter with a Re- money orders by payees. serve Bank for any purpose specified in 762.30 Disbursement postal money orders § 761.3 shall be assigned for conversion issued to incompetent payees. to book-entry Postal Service securi- 762.31 Disbursement postal money orders ties. The assignment, which shall be issued to deceased payees. executed in accordance with the provi- Subpart C—Issuance of Substitutes for Lost, sions of part 760 of this subchapter and Destroyed, Mutilated, and Defaced subpart F of 31 CFR part 306, so far as Disbursement Postal Money Orders applicable, shall be to ‘‘Federal Re- serve Bank of llllll as fiscal 762.41 Advice of non-receipt or loss, destruc- agent of the United States acting on tion, or mutilation. behalf of the Postal Service for conver- 762.42 Request for substitute disbursement sion to book-entry Postal Service secu- postal money orders; requirements for rities.’’ undertaking of indemnity. 762.43 Issuance of substitute disbursement § 761.8 Servicing book-entry Postal postal money order. Service securities; payment of inter- 762.44 Receipt or recovery of original dis- est, payment at maturity or upon bursement postal money order. call. 762.45 Removal of stoppage of payment. Interest becoming due on book-entry AUTHORITY: 39 U.S.C. 401(2), 401(3), 401(4), Postal Service securities shall be 401(10), and 404(6). charged in the Postal Service Fund on SOURCE: 40 FR 52371, Nov. 10, 1975, unless the interest due date and remitted or otherwise noted. credited in accordance with the depositor’s instructions. Such securities shall Subpart A—General, Definitions, be redeemed and charged in the Postal Issuance Service Fund on the date of maturity, call or advance refunding, and the re- § 762.11 General. demption proceeds, principal and inter- The Postal Service, at its discretion, est, shall be disposed of in accordance issues a specialized postal money order, with the depositor’s instructions. designated a Disbursement Postal Money Order in payment of Postal PART 762—DISBURSEMENT POSTAL Service obligations. Disbursement MONEY ORDERS Postal Money Orders are distinguish- able on their face from other postal Subpart A—General, Definitions, Issuance money orders in the following ways: (a) Disbursement Postal Money Or- Sec. ders have words of negotiability—‘‘Pay 762.11 General. 762.12 Definitions. to the order of’’—printed on their face, 762.13 Issuance. while other postal money orders simply 762.14 Amounts for which disbursement bear the words ‘‘Pay to’’ on their face; postal money orders may be issued. (b) Disbursement Postal Money Or- 762.15 Postal Service payments not made by ders, unlike other postal money orders, disbursement postal money order. bear on their face the phrase, ‘‘This special money order is drawn by the Subpart B—Endorsements, Payment, Guar- Postal Service to pay one of its own ob- anties, Warranties and Processing of ligations.’’; and Disbursement Postal Money Orders (c) The amounts of Disbursement 762.21 Scope. Postal Money Orders are printed in

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

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personally, the presenting bank and (b) Each Federal Reserve Bank shall: the endorsers shall be deemed to guar- (1) Receive Disbursement Postal antee to the Postal Service, in addition Money Orders from its member banks, to other warranties, that the person and its other depositors which guar- who so endorsed had unqualified capac- antee all prior endorsements thereon; ity and authority to endorse the Dis- (2) Give immediate credit therefor in bursement Postal Money Order on be- accordance with its current Time half of the payee. Schedules and charge the amount thereof to the general account of the § 762.25 Reclamation of amounts of U.S. Treasury, subject to examination paid disbursement postal money or- and payment by the Postal Service; ders. and The Postal Service shall have the (3) Forward the Disbursement Postal right to demand refund from the pre- Money Orders to the Postal Service. senting bank of the amount of a paid 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 An original Disbursement Postal or unauthorized endorsement, or an en- Money Order may be released to a re- dorsement by another for a deceased sponsible endorser only upon receipt of payee where the right to the proceeds a properly authorized request showing of such Disbursement Postal Money Or- the reason it is required. ders terminated upon the death of the 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 re- (a) General requirements. Disburse- fund is not made, the Postal Service ment Postal Money Orders shall be en- shall take such action against the dorsed by the payee or the payees proper parties as may be necessary to named, or by another on behalf of such protect its interests. payee or payees as set forth in this subpart B. The forms of endorsement shall § 762.26 Postal facilities not to cash conform to those recognized by general disbursement postal money orders. 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 bursement Postal Money Orders as fol- acting as an attorney in fact for the lows: payee or payees, under his or their au- (a) Federal Reserve Banks shall not thorization. be expected to cash Disbursement Post- (c) Endorsement of disbursement postal al Money Orders presented directly to money orders drawn in favor of financial them for payment; and organizations. All Disbursement Postal

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Money Orders drawn in favor of finan- or defacement of a Disbursement Post- cial organizations, for credit to the ac- al Money Order to an extent which ren- counts of persons designating payment ders it non-negotiable, the owner so to be made, shall be endorsed in the should immediately contact the Money name of the financial organization as Order Division, Postal Data Center, payee in the usual manner. P.O. Box 14963, St. Louis, MO 63182, describing the Disbursement Postal § 762.30 Disbursement postal money orders issued to incompetent pay- Money Order, stating the purpose for ees. which it was issued, giving, if possible, (a) If the Disbursement Postal Money its date, number, and amount, and re- Order is endorsed by a legal guardian questing that payment be stopped. In or other fiduciary and presented for cases involving mutilated or defaced payment by a bank it will be paid by Disbursement Postal Money Orders the the Postal Service without submission owner should enclose the mutilated or to the Postal Service of documentary defaced item with his communication. proof of authority of the guardian or (b) If the Disbursement Postal Money other fiduciary. Order, which is the basis of the owner’s (b) If a guardian has not been or will claim, is determined to be outstanding, not be appointed, the Disbursement the Money Order Division shall furnish Postal Money Order shall be forwarded the claimant an appropriate applica- to the Money Order Division, Postal tion form for obtaining a substitute Data Center, P.O. Box 14963, St. Louis, Disbursement Postal Money Order. MO 63182, with a full explanation of the However, the execution of an applica- circumstances. tion shall not be required in the event the original written statement sub- § 762.31 Disbursement postal money orders issued to deceased payees. mitted by the claimant substantially meets the requirements of the pre- (a) If the Disbursement Postal Money scribed application form. Order is endorsed by an Executor or Administrator and presented for pay- § 762.42 Request for substitute dis- ment by a bank it will be paid by the bursement postal money orders; re- Postal Service without submission to quirements for undertaking of in- the Postal Service of documentary demnity. proof of the authority of the Executor In the case of a request for a sub- or Administrator. (b) If an Executor or Administrator stitute Disbursement Postal Money has not been appointed or if there is Order: doubt as to whether the proceeds of the (a) An undertaking of indemnity in Disbursement Postal Money Order pass penal sum equal to the amount of the to the estate of the deceased payee, the Disbursement Postal Money Order instrument should be returned to the shall, unless otherwise provided in this Money Order Division, Postal Data section, be executed by the claimant, Center, P.O. Box 14963, St. Louis, MO as may be required by the Postal Serv- 63182, for determination whether, under 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, Subpart C—Issuance of Substitutes no undertaking of indemnity shall be for Lost, Destroyed, Mutilated, required in the following classes of and Defaced Disbursement cases: Postal Money Orders (1) If the Postal Service is satisfied that the loss, theft, destruction, muti- § 762.41 Advice of non-receipt or loss, lation or defacement occurred without destruction, or mutilation. fault of the owner or holder, and while (a) In the event of the non-receipt, the Disbursement Postal Money Order loss, or destruction of a Disbursement was in the custody or control of the Postal Money Order, or the mutilation Postal Service;

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(2) If substantially the entire Dis- § 762.44 Receipt or recovery of original bursement Postal Money Order is pre- disbursement postal money order. sented and surrendered by the owner or (a) If the original Disbursement Post- holder and the Postal Service is satis- al Money Order is received or recovered fied as to the identity of the Disburse- by the owner after he has requested the ment Postal Money Order presented Postal Service to stop payment on the and that any missing portions are not original but before a substitute has sufficient to form the basis of a valid been received, he should immediately claim against the Postal Service; advise the Money Order Division and (3) If the Postal Service is satisfied hold such original Disbursement Postal that the original Disbursement Postal Money Order until receipt of instruc- Money Order is not negotiable and can- tions with respect to its negotiability. not be made the basis of a valid claim (b) If the original Disbursement Post- against the Postal Service; or al Money Order is received by the (4) If the amount of the Disbursement owner after a substitute has been re- Postal Money Order is not more than ceived by him, the original shall not be cashed, but shall be immediately for- $200. warded to the Money Order Division. § 762.43 Issuance of substitute dis- Under no circumstances shall both the bursement postal money order. original and substitute be cashed. Upon approval of the undertaking of § 762.45 Removal of stoppage of pay- indemnity, application, or statement of ment. claim, the Money Order Division shall Requests for removal of stoppage of issue to the claimant a substitute Dis- payment shall be addressed to the bursement Postal Money Order show- Money Order Division. No request for ing such information as may be nec- removal of stoppage of payment shall essary to identify the original instru- be accepted after issuance of a sub- ment. stitute Disbursement Postal Money Order has been approved.

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PART 775—NATIONAL ENVIRON- (h) Reduce delay. MENTAL POLICY ACT § 775.3 Responsibilities. PROCEDURES (a) The Chief Environmental Officer Sec. is responsible for overall development 775.1 Purpose. of policy regarding NEPA and other en- 775.2 Policy. vironmental policies. The officer in 775.3 Responsibilities. charge of the facilities or real estate 775.4 Definitions. organization is responsible for the de- 775.5 Classes of actions. velopment of NEPA policy as it affects 775.6 Categorical exclusions. 775.7 Planning and early coordination. real estate or acquisition, construction 775.8 Environmental evaluation guidelines. and disposal of postal facilities con- 775.9 Environmental evaluation process. sistent with overall NEPA policy. Each 775.10 Environmental assessments. officer with responsibility over the pro- 775.11 Environmental impact statements. 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. (f) Use all practicable means to pro- Responsible official means the person, tect, restore, and enhance the quality or designated representative, who proof the human environment. poses an action and is responsible for (g) Reduce paperwork. compliance with NEPA. For larger

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projects, that person may not have the (12) Reduction in force involving financial authority to approve such ac- more than 1000 positions; tion. The responsible official signs the (13) Relocation of 300 or more em- NEPA documents (FONSI, ROD) and ployees more than 50 miles; the REC. (14) Initiation of legislation. [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 proposed actions with potentially sig- with fuel other than diesel or gasoline nificant impacts. Extraordinary cir- in any carbon monoxide or ozone non- cumstances are those unique situations attainment area; presented by specific proposals, such as (2) Any action that would adversely scientific controversy about the envi- affect a federally listed threatened or ronmental impacts of the proposal, un- endangered species or its habitat; certain effects or effects involving (3) Any action that would directly af- unique or unknown risks. fect public health; (b) Categorical exclusions relating to (4) Any action that would require de- general agency actions: velopment within park lands, or be lo- (1) Policy development, planning and cated in close proximity to a wild or implementation that relate to routine scenic river or other ecologically crit- activities such as personnel, organiza- ical area; tional changes or similar administra- (5) Any action affecting the quality tive functions. of the physical environment that would (2) Routine actions, including the be scientifically highly controversial; management of programs or activities (6) Any action that may have highly necessary to support the normal con- uncertain or unknown risks on the duct of agency business, such as admin- human environment; istrative, financial, operational and (7) Any action that threatens a viola- personnel action that involve no com- tion of applicable federal, state, or mitment of resources other than man- local law or requirements imposed for power and funding allocations. the protection of the environment; (3) Award of contracts for technical (8) New construction of a facility support services, management and op- with vehicle maintenance or fuel dis- eration of a government owned facility, pensing capabilities, whether owned or and personal services. leased; (4) Research activities and studies (9) Acquisition or lease of an existing and routine data collection when such building involving new uses or a actions are clearly limited in context change in use to a greater environ- and intensity. mental intensity; (5) Educational and informational (10) Real property disposal involving programs and activities. a known change in use to a greater en- (6) Reduction in force resulting from vironmental intensity; workload adjustments, reduced per- (11) Postal facility function changes sonnel or funding levels, skill imbal- involving new uses of greater environ- ances or other similar causes that do mental intensity; not affect more than 1,000 positions.

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(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 (d) Categorical exclusions relating to employees, or no substantial increase maintenance or repair actions at exist- in the number of motor vehicles at a ing facilities: facility. (15) Closure or consolidation of post (1) Siting, construction or operation offices under 39 U.S.C. 404(b). 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.). ‘‘reference actions’’ shall be main- (6) Internal modifications or im- tained by the Chief Environmental Of- provements to structure, or buildings ficer or designee. The proposed action to accommodate mail processing, com- must be essentially the same in con- puter, communication or other similar text and the same or less in intensity types of equipment or other actions

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which do not involve modification to (9) Acquisition and disposal through the external walls of the facility. sale, lease, transfer, reservation or ex- (7) Joint development and/or joint change of real property for nature and use projects that only involve internal habitat preservation, conservation, a modifications to an existing facility. park or wildlife management. (8) Noise abatement measures, such (10) New construction, Postal Service as construction of noise barriers and owned or leased, or joint development installation of noise control materials. and joint use projects, of any facility (9) Actions which require concur- unless the proposed action is listed as rence or approval of another federal requiring an EA in § 775.5. agency where the action is a categor- (11) Expansion or improvement of an ical exclusion under the NEPA regula- existing facility where the expansion is tions of that federal agency. within the boundaries of the site or oc- (e) Categorical exclusions relating to curs in a previously developed area un- real estate actions. less the proposed action is listed as re- (1) Obtaining, granting, disposing, or quiring an EA in § 775.5. changing of easements, licenses and (12) Construction and disturbance permits, rights-of-way and similar in- pursuant to a nationwide, regional or terests. general permit issued by the US Army Corps of Engineers. (2) Extension, renewal, renegotiation, (13) Any activity in floodplains being or termination of existing lease agree- regulated pursuant to § 775.6 and is not ments. listed as requiring an EA in § 775.5. (3) Purchase of Postal Service occupied leased property where the planned [63 FR 45720, Aug. 27, 1998] postal uses do not differ significantly from the past uses of the site. § 775.7 Planning and early coordination. (4) Acquisition or disposal of existing facilities and real property where the Early planning and coordination planned uses do not differ significantly among postal functional groups is re- from past uses of the site. quired to properly consider environ- (5) Acquisition of real property not mental issues that may be attributable connected to specific facility plans or to the proposed action. Operational and when necessary to protect the interests facility personnel must cooperate in of the Postal Service in advance of the early concept stages of a program final project approval. This categorical or project. If it is determined that exclusion only applies to the acquisi- more than one postal organization will tion. Any subsequent use of the site for be involved in any action, a lead orga- a facility project must be considered nization will be selected to complete under this part. the NEPA process before any NEPA (6) Disposal through sale or outlease documents are prepared. If it is deter- of unimproved real property. mined that a project has both real es- (7) Disposal through sale, outlease, tate and non-real estate actions, the transfer or exchange of real property to facilities functional organization will other federal or state agencies. take the lead. (8) Acquisition and disposal through [63 FR 45721, Aug. 27, 1998] sale, lease, transfer or exchange of real property that does not involve an in- § 775.8 Environmental evaluation crease in volumes, concentrations, or guidelines. discharge rates of wastes, air emis- (a) Approach. When dealing with pro- sions, or water effluents, and that posals which may have an impact on under reasonably foreseeable uses, have the human environment, environ- generally similar environmental im- mental coordinators, planners, decision pacts as compared to those before the makers, and other officials responsible acquisition or disposal. A determina- for actions, will, as appropriate: tion that the proposed action is cat- (1) Use a systematic approach that egorically excluded can be based upon integrates natural and social sciences previous ‘‘reference actions’’ docu- and environmental design in planning mented under § 775.6(b)(17). and making decisions.

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(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. (ii) The action is not affected by ex- (5) Record of decision. For actions re- traordinary circumstances which may quiring environmental impact state- cause it to have a significant environ- ments, a concise public record of deci- mental effect, or sion is prepared when a decision, or a

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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 Serivce 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 consid- whether to prepare an environmental ered in reaching a decision, specifying impact statement for presentation to alternatives considered to be environ- the Capital Investment Committee, mentally preferable; identify and dis- and to the Board of Governors if the cuss all significant factors, including 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 (ii) The continued control of specified impact, or competing sites (including advance ac- (ii) Limit the choice of reasonable al- quisition, if necessary, and where au- ternatives. thorized by postal procedures), chosen (7) Mitigation measures. Practicable 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 used for project development, and au- contending sites for a facility. This thorizes the project. process must be started early in the planning of the action. An environ- [44 FR 63525, Nov. 5, 1979, as amended at 48 mental assessment report, however, is FR 29378, June 24, 1983; 50 FR 32411, Aug. 12, not required until the contending 1985; 50 FR 33036, Aug. 16, 1985; 55 FR 10454, project sites have been determined. Mar. 21, 1990. Redesignated and amended at The information contained in the envi- 63 FR 45719, 45721, Aug. 27, 1998; 65 FR 41012, ronmental assessment report must be July 3, 2000]

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§ 775.10 Environmental assessments. tion arise which bear on the proposal (a) An environmental assessment or its impacts. must contain: (b) Preparation. (1) Except for pro- (1) A summary of major consider- posals for legislation, environmental ations and conclusions, impact statements are prepared in two (2) A description of the proposed ac- stages: tion, (i) Draft environmental impact state- (3) For each reasonable alternative, a ment, prepared in accordance with the description of the affected environ- scope decided upon under paragraph (a) ment, the environmental consequences, of this section. the mitigation measures, if any, and a (ii) Final environmental impact comparison to all alternatives consid- statement, responding to comments on ered. the draft statement and discussing and (4) A list of applicable environmental responding to any responsible opposing permits necessary to complete the pro- view which was not adequately disposed action. cussed in the draft statement. (b) Those preparing an environmental (2) Environmental impact statements assessment must solicit information must: and views from Federal, State, and (i) Be analytic rather than encyclo- local agencies and, where there is a pedic. substantial likelihood of significant ef- (ii) Contain discussions of impacts in fects on the environment, the public. proportion to their significance. Insig- All responsible views and information nificant impacts eliminated during the must be considered. process under § 775.11(a) to determine [44 FR 63525, Nov. 5, 1979. Redesignated and the scope of issues must be discussed amended at 63 FR 45719, 45722, Aug. 27, 1998] only to the extent necessary to state why they will not be significant. § 775.11 Environmental impact state- (iii) Be concise, and not longer than ments. is necessary to comply with NEPA. (a) Determining scope. Before an envi- They must not contain repeated state- ronmental impact statement is pre- ments of the same basic points. pared, the following procedures must (iv) Contain discussions of alter- be followed to determine what issues natives considered and of how alter- are to be addressed and in what depth: natives chosen will meet the require- (1) Affected Federal, State, and local ments of NEPA and other environ- agencies and other interested persons mental laws and policies. are invited to participate by furnishing (v) Encompass the range of alter- written views and information, or at a natives to be considered by the deci- hearing if appropriate. Notice is given sion makers. in accordance with § 775.13. (vi) Serve to assess the environ- (2) The significance of issues to be 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. sonable courses of action, and mitiga- (4) Staged or ‘‘tiered’’ environmental tion measures. impact statements must not contain (iii) Impacts, which may be direct, repetitive discussions of the same indirect, or cumulative. issues. Each document must state (3) Issues which are not significant where each earlier document is avail- are identified and eliminated. able. (4) The determinations made must be (5) Material may be incorporated into revised if substantial changes are made an environmental impact statement by later in the proposed action, or if sig- reference only when the material is nificant new circumstances or informa- reasonably available for inspection by

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potentially interested persons within will be reconciled with the law, ordi- the time allowed for comment. nance, or approved plan. (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 with any city, state, and county where probability of occurrence is low, pro- the action is to take place. vided that the analysis of the impacts (iii) The name, address, and tele- is supported by credible scientific evi- phone number of a person at the agen- dence, is not based on pure conjecture, cy who can supply further information. and is within the rule of reason. (iv) A designation of the document as a draft or final statement or a draft or (7) If a cost-benefit analysis relevant final supplement. to the choice among environmentally (v) A one-paragraph abstract of the different alternatives was prepared for statement. the proposed action, it must be incor- (vi) The date by which comments porated by reference or appended to the must be received. statement to aid in evaluating the en- (2) Summary. The section should vironmental consequences. The rela- compare and summarize the findings of tionship between the cost-benefit anal- the analyses of the affected environ- ysis and any analysis of unquantified ment, the environmental impacts, the environmental impacts, values, and environmental consequences, the alter- amenities must be discussed. natives, and the mitigation measures. (8) Methods used must be identified, The summary should sharply define the and footnote references must be made issues and provide a clear basis for to scientific and other sources relied on choosing alternatives. for conclusions. Analytical techniques (3) Table of Contents. may be incorporated in appendices. (4) Proposed action. This section (9) Permits, licenses, and other au- should clearly outline the need for the thorizations needed to implement a EIS and the purpose and description of proposal must be listed in the draft en- the proposed action. The entire action vironmental impact statement and the should be discussed, including con- prospects for obtaining them must be nected and similar actions. A clear dis- assessed. Where there is uncertainty as cussion of the action will assist in con- to the need for an authorization it sideration of the alternatives. must be indicated. (5) Alternatives and mitigation. This (10) An environmental impact state- portion of the environmental impact ment must contain a discussion of any statement is vitally important. Based inconsistency between the proposed ac- on the analysis in the Affected Envi- tion and any State or local law, ordi- ronment and Environmental Con- nance, or approved plan; and must consequences section (see § 775.11(c)(6)), the tain a description of the manner and environmental impacts and the alter- extent to which the proposed action natives are presented in comparative

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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- (i) Any Federal agency which has ju- mental Consequences. For each reason- risdiction by law or special expertise able alternative, each affected element with respect to any environmental im- of the environment must be described, pact involved. followed immediately by an analysis of (ii) Any appropriate Federal, state, the impacts (environmental con- or local agency authorized to develop sequences). The analysis must include, and enforce environmental standards. among others, the following: (iii) The appropriate review officials (i) Any adverse environmental effects identified in the Postal Service regula- which cannot be avoided should the actions and procedures governing inter- tion be implemented. governmental review of Postal Service (ii) The relationship between short- facility project actions, the State His- term uses of the environment and the toric Preservation Officer, and, when maintenance and enhancement of long- National Register or eligible properties term productivity, may be affected, the Advisory Council (iii) Any irreversible or irretrievable on Historic Preservation. commitments of resources should the (iv) Any person, organization or action be implemented, and agency requesting them. (iv) Energy requirements and con- (4) Copies of final environmental im- servation; and natural, or depletable, pact statements must be furnished to resource requirements and conserva- any person who, or organization or tion. agency which, submitted substantive (7) List of Mitigation Measures. comments on the draft. (8) List of Preparers. List the names, (e) Responses to comments. (1) A final together with the qualifications (exper- statement responds to comments on a tise, professional disciplines), of per- draft statement in one or more of the sons who were primarily responsible following ways: for preparing the environmental im- (i) Modification of alternatives, in- pact statement or significant back- cluding the proposed action. ground papers. (ii) Development and evaluation of (9) List of Agencies, Organizations and alternatives not previously given seri- Persons to Whom Copies of the Statement ous consideration. Are Sent. (iii) Supplementation, improvement, (10) Index. or modification of analyses. (11) Appendices. Include comments on (iv) Correction of facts. draft statement in final statement. (v) Explanation of why a comment (d) Distribution. (1) Any completed does not warrant a direct response, cit- draft environmental impact statement ing supporting sources, authorities, or

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reasons. Relevant circumstances which (i) It is not necessary to determine may trigger reappraisal or further re- the scope of issues. sponse must be indicated. (ii) A draft is considered to be a final (2) Substantive comments received statement. Both draft and final state- on a draft statement must be attached ments are needed only when: to the final statement. (A) A Congressional committee with (3) If all of the changes are minor and jurisdiction over the proposal has a are confined to responses described in rule requiring both. paragraphs (e)(1) (iv) and (v) of this (B) Both are specifically required by section, errata sheets may be written, statute for proposals of the type being and only the comments and errata submitted. sheets need be recirculated. In such a (3) Comments received on a legisla- case, the draft statement with the tive statement, and the Postal Serv- comments, errata sheets, and a new ice’s responses, must be forwarded to cover, must be filed as the final state- the Congress. ment. (f) Supplements. (1) A supplement to a [44 FR 63525, Nov. 5, 1979, as amended at 48 draft or final environmental impact FR 29378, June 24, 1983; 55 FR 10455; Mar. 21, 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 environ- to environmental concerns; or mental impact statement actions. (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. (1) A legislative environmental im- (d) A minimum of 45 days must be al- pact statement is considered part of lowed for comments on draft state- the formal transmittal of a legislative ments. proposal to the Congress. It may be transmitted to the Congress up to 30 [44 FR 63525, Nov. 5, 1979. Redesignated at 63 days after the proposal. The statement FR 45719, Aug. 27, 1998] must be available in time for Congres- sional hearings and deliberations. § 775.13 Public notice and information. (2) Preparation and processing of a (a) Public notice is given of NEPA-re- legislative statement must conform to lated hearings, intent to undertake en- the requirements for impact state- vironmental assessments and environ- ments, except as follows: mental impact statements, and the

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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 amended at 63 FR 45719, 45722, Aug. 27, 1998] Postal Service regulations and procedures 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 to potentially interested community organizations, including small business Management associations. 776.4 Scope. (v) Any such notice may be mailed to 776.5 Review procedures. owners and occupants of nearby or af- 776.6 Design requirements for construction. fected property. 776.7 Lease, easement, right-of-way, or dis- (4) A copy of every notice of intent to posal of property to non-federal parties. prepare an environmental impact statement must be furnished to the Subpart C—Wetlands Protection Chief Counsel, Legislative, Law De- partment, who will have it published in 776.8 Scope. 776.9 Review procedures. the FEDERAL REGISTER. 776.10 Lease, easement, right-of-way, or dis- (b) All notices must give the name, posal of property to non-Federal parties. address, and telephone number of a postal official who may be contacted AUTHORITY: 39 U.S.C. 401. for information. Environmental docu- SOURCE: 64 FR 56254, Oct. 19, 1999, unless ments are made available to the public otherwise noted. on request. Inspection, copying, and the furnishing of copies will be in ac- Subpart A—General Provisions cordance with 39 CFR Part 265, ‘‘Re- lease of Information.’’ § 776.1 Purpose and policy. [44 FR 63525, Nov. 5, 1979, as amended at 47 (a) The regulations in this part im- FR 19992, May 10, 1982; 48 FR 29378, June 24, plement the goals of Executive Orders 1983. Redesignated and amended at 63 FR 11990, Protection of Wetlands, and 45719, 45722, Aug. 27, 1998] 11988, Floodplain Management, and are

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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 Subpart B—Floodplain the Vice President’s delegated author- Management ity. § 776.4 Scope. § 776.3 Definitions. (a) The regulations in this subpart Construction means construction, al- are applicable to the following pro- terations, renovations, and expansions posed postal facility actions located in of buildings, structures and improve- a floodplain: ments. (1) New construction, owned or Contending site means a site or exist- leased; or ing building for a proposed postal facil- (2) Construction projects at an exist- ity action, which meets the require- ing facility that would increase the ments of the Postal Service as deter- amount of impervious surface at the mined by the operations organization. site. Facility means any building, appur- (b) These procedures are not applica- tenant structures, or associated infra- ble to the following postal facility ac- structure. tions: Floodplain means the lowland and rel- (1) Those actions identified in para- atively flat areas adjoining inland and graphs (a)(1) and (a)(2) of this section, coastal waters including flood-prone when the entire preferred area, or all areas of offshore islands, including, at contending sites, for such actions lies a minimum, that area subject to a one within a floodplain; percent or greater chance of flooding in (2) Incidental construction, such as any given year (also known as a 100- construction of athletic fields, rec- year floodplain). reational facilities, sidewalks, and Practicable means capable of being ac- other minor alteration projects; complished within existing constraints. (3) Construction at existing postal fa- The test of what is practicable depends cilities pursuant to the Architectural

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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 (7) Leasing or other use of space for steps have been followed, if the deter- not more than one year. mination is that there appears to be no 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 determined based on the best available (iii) A statement indicating whether information. the action conforms to applicable state (2) Once the preferred site has been and local floodplain protection stand- identified, potential floodplain impacts ards. must be determined. As part of this de- (f) Distribution. The above public no- termination process, specific floodplain tice will be sent to appropriate offi- information should be developed, which cials, local newspapers, and other par- is to consider: ties who express interest in the project.

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(g) NEPA coordination. If either an Barriers Act or postal accessibility Environmental Impact Statement or standards; an Environmental Assessment is re- (3) Any facility construction project quired under the Postal Service’s Na- deemed necessary to comply with fed- tional Environmental Policy Act eral, state, or local health, sanitary, or (NEPA) regulations, the above review safety code standards to ensure safe procedures must be incorporated into working conditions; and evaluated in that document. (4) Construction of facilities that are functionally dependent on water, such § 776.6 Design requirements for con- as piers, docks, or boat ramps; or struction. (5) Maintenance, repair, or renova- If structures impact, are located in, tion of existing facilities. or support development in a floodplain, construction must conform, at a min- § 776.9 Review procedures. imum, 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 alter- § 776.7 Lease, easement, right-of-way, native. The Postal Service shall avoid or disposal of property to non-fed- construction located in a wetland un- eral parties. less it issues a finding of no practicable 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 floodplain regulations; or (2) The proposed action includes all 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: (1) Construction of foot and bike (a) Reference in the conveyance doc- trails, or boardwalks, including signs, ument that the parcel contains wet- the primary purposes of which are pub- lands and may be restricted in use pur- lic education, interpretation, or enjoy- suant to federal, state, or local wet- ment of wetland resources; lands regulations; or (2) Construction at existing postal fa- (b) Withhold the property from con- cilities pursuant to the Architectural veyance.

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

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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 pont 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 § 912.3 Time limit for filing. Office of General Counsel (a) Claim. A claim under the Federal Tort Claims Act must be presented PART 912—PROCEDURES TO ADJU- within two years from the date the DICATE CLAIMS FOR PERSONAL claim accrues. INJURY OR PROPERTY DAMAGE (b) Suit. Suit must be filed within six ARISING OUT OF THE OPERATION months after the date of mailing by OF THE U.S. POSTAL SERVICE certified or registered mail of notice of final denial of the claim by the Postal Sec. Service. 912.1 Claims responsibility. [45 FR 43720, June 30, 1980] 912.2 Applicability of Federal Tort Claims Act. 912.3 Time limit for filing. § 912.4 Place of filing. 912.4 Place of filing. A claim is usually filed with the 912.5 Administrative claim; when presented. postmaster of the office within the de- 912.6 Administrative claim; who may file. 912.7 Evidence and information to be sub- livery limits of where the accident hap- mitted. pened, but may be filed at any office of 912.8 Sufficiency of evidence and informa- the Postal Service, or sent directly to tion submitted. the Assistant General Counsel, Claims 912.9 Final denial of claim. Division, U.S. Postal Service, Wash- 912.10 Action on approved claims. ington, DC 20260. 912.11 Exclusiveness of remedy. 912.12 Review by legal officers. [45 FR 43720, June 30, 1980] 912.13 Attorneys’ fees. 912.14 Conclusiveness of remedy. § 912.5 Administrative claim; when AUTHORITY: 28 U.S.C. 2671–2680; 28 CFR 14.1 presented. through 14.11; 39 U.S.C. 409. (a) For purposes of this part, a claim § 912.1 Claims responsibility. shall be deemed to have been presented when the U.S. Postal Service receives The General Counsel is responsible from a claimant, his duly authorized for settlement of claims made against agent or legal representative, an exe- the U.S. Postal Service under the Fed- cuted Standard Form 95, Claim for eral Tort Claims Act and 39 U.S.C. 2603, Damage or Injury, or other written no- with authority to redelegate the func- tification of an incident, accompanied tions to General Counsel staff members by a claim for money damages in a sum and other Postal Service employees. certain for injury to or loss of prop- [36 FR 12448, June 30, 1971] erty, personal injury, or death alleged to have occurred by reason of the inci- § 912.2 Applicability of Federal Tort dent. Standard Form 95 may be ob- Claims Act. tained from postmaster, postal inspec- (a) The provisions of chapter 171 and tors, or other local Postal Service es- all other provisions of title 28, U.S.C., tablishments. relating to tort claims shall apply to (b) A claim presented in compliance tort claims arising out of the activities with paragraph (a) of this section may of the Postal Service. (39 U.S.C. 409(c)). be amended by the claimant at any (b) Where the General Counsel, or his time prior to final Postal Service ac- designee, finds a claim for damage to tion or prior to the exercise of the persons or property resulting from op- claimant’s option under 28 U.S.C. eration of the U.S. Postal Service to be 2675(a). A claim may not be amended a proper charge against the United after the Postal Service has issued pay- States and it is not cognizable under 28 ment of the full amount of the claim or U.S.C. 2672, he may adjust and settle it has issued a written denial of the claim under authority of 39 U.S.C. 2603. in accordance with § 912.9. Amendments [45 FR 43719, June 30, 1980] shall be submitted in writing and

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signed by the claimant or his duly au- ing cause of death, date of death, and thorized agent or legal representative. age of the decedent. Upon the timely filing of an amend- (2) Decedent’s employment or occu- ment to a pending claim, the Postal pation at time of death, including Service shall have six months in which monthly or yearly salary or earnings, to make final disposition of the claim if any, and the duration of his last em- as amended, and the claimant’s option ployment or occupation. under 28 U.S.C. 2675(a) shall not accrue (3) Full names, addresses, birth dates, until six months after the filing of an kinship, and marital status of the dece- amendment. dent’s survivors, including identification of those survivors who were de- [36 FR 12448, June 30, 1971, as amended at 45 FR 43720, June 30, 1980] 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. (6) Itemized bills for medical and bur- (b) A claim for personal injury may ial expenses incurred by reason of the be presented by the injured person, his incident causing death, or itemized re- duly authorized agent, or legal rep- ceipts of payment for such expenses. resentative. (7) If damages for pain and suffering (c) A claim based on death may be 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, agent, executor, administrator, parent, and any diminished earning capacity. guardian, or other representative. In addition, the claimant may be re- [36 FR 12448, June 30, 1971, as amended at 45 quired to submit to a physical or men- FR 43720, June 30, 1980] tal examination by a physician employed by the agency or another Fed- § 912.7 Evidence and information to be eral agency. A copy of the report of the submitted. examining physician shall be made (a) Death. In support of a claim based available to the claimant upon the on death, the claimant may be required claimant’s written request, provided to submit the following evidence or in- that he has, upon request, furnished formation: the report referred to in the first sen- (1) An authenticated death certifi- tence of this paragraph and has made, cate or other competent evidence show- or agrees to make available to the

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agency or another Federal agency. A § 912.9 Final denial of claim. 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 (3) If the prognosis reveals the neces- a statement that, if the claimant is sity for future treatment, a statement dissatisfied with the agency action, he of expected expenses for such treat- may file suit in an appropriate U.S. ment. District Court not later than 6 months (4) If a claim is made for loss of time after the date of mailing of the nota- for employment, a written statement tion. from his employment, whether he is a (b) Prior to the commencement of full- or part-time employee, and wages suit and prior to the expiration of the or salary actually lost. 6 month period provided in 28 U.S.C. (5) If a claim is made for loss of in- 2401(b), a claimant, his duly authorized come and the claimant is self-em- agent, or legal representative, may file ployed, documentary evidence showing a written request with the postal offi- the amount of earnings actually lost. cial who issued the final denial or with (6) Any other evidence or information the Assistant General Counsel, Claims which may have a bearing on either the Division, U.S. Postal Service, Wash- responsibility of the United States for ington, DC 20260, for a reconsideration the personal injury or the damages of a final denial of a claim under para- claimed. graph (a) of this section. Upon the timely filing of a request for reconsid- (c) Property damage. In support of a eration, the Postal Service shall have 6 claim for injury to or loss of property, months from the date of filing in which real or personal, the claimant may be to make a disposition of the claim and required to submit the following evi- the claimant’s option under 28 U.S.C. dence or information: 2675(a) shall not accrue until 6 months (1) Proof of ownership. after the filing of a request for recon- (2) A detailed statement of the sideration. Final Postal Service action amount claimed with respect to each on a request for reconsideration shall item of property. be effected in accordance with this (3) An itemized receipt of payment part. for necessary repairs or itemized writ- (c) For purposes of this section, a re- ten estimates of the cost of such request for reconsideration of a final de- pairs. nial of a claim shall be deemed to have (4) A statement listing date of pur- 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 Assistant Gen- eral Counsel, Claims Division, U.S. [36 FR 12449, June 30, 1971] Postal Service, Washington, DC 20260– 1111. § 912.8 Sufficiency of evidence and information submitted. (d) Only one request for reconsideration of a final denial may be filed. A In order to exhaust the administra- claimant shall have no right to file a tive remedy provided, a claimant shall request for reconsideration of a final submit substantial evidence to prove denial issued in response to a request the extent of any losses incurred and for reconsideration. any injury sustained, so as to provide the Postal Service with sufficient evi- (28 U.S.C. 2671–2680; 28 CFR 14.1–14.11; 39 U.S.C. 401, 409, 2008) dence for it to properly evaluate the claim. [36 FR 12448, June 30, 1971, as amended at 38 FR 16868, June 27, 1973; 49 FR 19478, May 8, [45 FR 43720, June 30, 1980] 1984]

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§ 912.10 Action on approved claims. constitute a complete release of any In any case where the General Coun- claim against the United States and sel or his designee, upon consideration against any employee of the Govern- of all the evidence submitted, finds ment whose act or omission gave rise that compensation is due a claimant, to the claim by reason of the same sub- payment will be made by the U.S. Post- ject matter. al Service and in due course a settle- [45 FR 43720, June 30, 1980] ment check will be forwarded to the claimant or his representative. PART 913—PROCEDURES FOR THE [36 FR 12450, June 30, 1971] ISSUANCE OF ADMINISTRATIVE § 912.11 Exclusiveness of remedy. SUBPOENAS UNDER 39 U.S.C. The provisions of 28 U.S.C. 2679(b) 3016 provide that the remedy against the United States, as provided by sections Sec. 1346(b) and 2672 of title 28, for injury or 913.1 Subpoena authority. loss or personal injury or death result- 913.2 Service. ing from the operation by an employee 913.3 Enforcement. of the Government of any motor vehi- 913.4 Disclosure. cle while acting within the scope of his AUTHORITY: 39 U.S.C. 204, 401, 404, 3005, 3016. employment is exclusive of any other civil action or proceeding by reason of SOURCE: 65 FR 31266, May 17, 2000, unless the same subject matter against the otherwise noted. employee or his estate whose act or § 913.1 Subpoena authority. omission gave rise to the claim. (a) General. The General Counsel by [45 FR 43720, June 30, 1980] delegation from the Postmaster Gen- § 912.12 Review by legal officers. eral is responsible for the issuance of subpoenas in investigations conducted The authority of the Postal Service to adjust, determine, compromise, and under 39 U.S.C. 3005(a), with authority settle a claim under the provisions of to delegate that function to a Deputy the Federal Tort Claims Act shall, if General Counsel. the amount of a proposed compromise, (b) Production of records. A subpoena settlement, or award exceeds $2,500, be issued by the General Counsel may re- exercised only after review by a legal quire the production of any records (in- officer of the Postal Service. cluding computer records, books, papers, documents, and other tangible [45 FR 43720, June 30, 1980] things which constitute or contain evi- § 912.13 Attorneys’ fees. dence) which the General Counsel con- The provisions of 28 U.S.C. 2678 siders relevant or material to an inves- should be consulted in determining the tigation. amount of the attorneys’ fees. (c) Requirements. No subpoena shall be issued until a specific case (identi- [36 FR 12448, June 30, 1971. Redesignated at 45 fying the individual or entity that is FR 43720, June 30, 1980] the subject) has been opened and an ap- § 912.14 Conclusiveness of remedy. propriate supervisory and legal review Payment by the Postal Service of the of a subpoena request have been per- full amount claimed or acceptance by formed. the claimant, his agent, or legal rep- (d) Requests for subpoenas. (1) A re- resentative, of any award, compromise, quest for a subpoena shall be submitted or settlement made pursuant to the to the Office of the General Counsel by provisions of the Federal Tort Claims a Postal Inspector, Inspector Attorney, Act, shall be final and conclusive on or other Inspector specifically author- the claimant, his agent, or legal rep- ized by the Postal Inspection Service resentative, and any other person on to submit such a request, after appro- whose behalf or for whose benefit the priate review by an Inspector In Charge claim has been presented, and shall or that person’s designee.

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(2) A request for a subpoena shall cer, managing agent, or general agent state the specific case, with an indi- thereof, or to any agent thereof au- vidual or entity identified as the sub- thorized by appointment or by law to ject, in which the subpoena is re- receive service of process on behalf of quested. such partnership, corporation, associa- (3) A request for a subpoena shall tion, or entity; contain a specific description of the (2) Delivering a duly executed copy records requested, and shall state how thereof to the principal office or place they are relevant or material to the in- of business of the partnership, corpora- vestigation. tion, association, or entity; or (4) The General Counsel, in his or her (3) Depositing such copy in the discretion, may issue or deny the re- United States mails, by registered or quested subpoena, or require the re- certified mail, return receipt requesting individual to provide addi- quested, duly addressed to such part- tional information. The General Coun- nership, corporation, association, or sel, in his or her discretion, may also entity at its principal office or place of honor requests to amend or supplement business. a request for a subpoena. (d) Service on natural persons. Serv- (e) Form and issuance. Every sub- ice of any subpoena may be made upon poena shall cite 39 U.S.C. 3016 as the any natural person by— authority under which it is issued, and (1) Delivering a duly executed copy to shall command each person to whom it the person to be served; or is directed to produce specified records (2) Depositing such copy in the at a time and place therein specified. United States mails, by registered or The General Counsel shall sign the sub- certified mail, return receipt re- poena and enter the name of the indi- quested, duly addressed to such person vidual or entity to whom it is directed. at his residence or principal office or place of business. § 913.2 Service. (e) Verified return. A verified return (a) Service within the United States. by the individual serving any such sub- A subpoena issued under this section poena setting forth the manner of such may be served by a person designated service shall be proof of such service. under section 3061 of title 18 at any In the case of service by registered or place within the territorial jurisdiction certified mail, such return shall be ac- of any court of the United States. companied by the return post office re- (b) Foreign service. Any such sub- ceipt of delivery of such subpoena. poena may be served upon any person who is not to be found within the terri- § 913.3 Enforcement. torial jurisdiction of any court of the (a) In general. Whenever any person, United States, in such manner as the partnership, corporation, association, Federal Rules of Civil Procedure de- or entity fails to comply with any sub- scribe for service in a foreign country. poena duly served upon him, the Gen- To the extent that the courts of the eral Counsel may request that the At- United States may assert jurisdiction torney General seek enforcement of the over such person consistent with due subpoena in the district court of the process, the United States District United States for any judicial district Court for the District of Columbia in which such person resides, is found, shall have the same jurisdiction to or transacts business (or in the case of take any action respecting compliance a person outside the territorial juris- with this section by such person that diction of any district court, the dis- such court would have if such person trict court for the District of Colum- were personally within the jurisdiction bia), and serve upon such person a peti- of such court. tion for an order of such court for the (c) Service on business persons. Serv- enforcement of this part. ice of any such subpoena may be made (b) Jurisdiction. Whenever any peti- upon a partnership, corporation, asso- tion is filed in any district court of the ciation, or other legal entity by— United States under this section, such (1) Delivering a duly executed copy court shall have jurisdiction to hear thereof to any partner, executive offi- and determine the matter so presented,

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and to enter such order or orders as recommendation, and will advise the may be required to carry into effect carrier of the recommendation. the provisions of this section. Any final (c) Penalty action. International Net- order entered shall be subject to appeal work Operations, upon review of the under section 1291 of title 28, United record, may impose a fine or penalty States Code. Any disobedience of any against a carrier for any irregularity final order entered under this section properly documented, whether or not by any court may be punished as con- penalty action has been recommended. tempt. A tentative decision of International § 913.4 Disclosure. Network Operations to take penalty action will be set forth in detail the Any documentary material provided facts and reasons upon which the deter- pursuant to any subpoena issued under mination is based. International Net- this section shall be exempt from dis- work Operations will send the ten- closure under section 552 of title 5, tative decision, including notice of the United States Code. irregularities found and the amount of fine or penalty proposed, to the carrier. PART 916 [RESERVED] The carrier may present a written defense to the proposed action within 21 Rules of Procedure Before the Mail days after receipt of the tentative deci- Processing Department sion. International Network Operations will advise the carrier of the final deci- PART 927—RULES OF PROCEDURE sion. RELATING TO FINES, DEDUC- (d) Appeal. If the final decision in- TIONS, AND DAMAGES cludes a penalty International Network Operations will advise the carrier that Sec it may, within 30 days, appeal the ac- 927.1 Noncontractual carriage of inter- tion in writing to the Vice President, national mail by vessel. Network Operations Management, U.S. 927.2 Noncontractual air service for international and military mail. Postal Service Headquarters and that 927.3 Other remedies. its written appeal should include all facts and arguments upon which the AUTHORITY: 39 U.S.C. 401, 2601 Chap. 56 Sec- tion 5604; 49 U.S.C. 1357, 1471. carrier relies in support of the appeal. If an appeal is not received, Inter- SOURCE: 67 FR 50353, Aug. 2, 2002, unless otherwise noted. national Network Operations will close the record. When an appeal is taken, § 927.1 Noncontractual carriage of the Vice President, Network Oper- international mail by vessel. ations Management will review the (a) Report of infraction. Where evi- complete record the decide the appeal. dence is found or reported that a car- He will advise the carrier of the deci- rier of mail by vessel which has trans- sion in writing and will take actions ported mail pursuant to the provisions consistent with that decision. The Vice of Chapter 4, USPS Purchasing Man- President, Network Operations Man- ual, has unreasonably or unnecessarily agement, may sustain, rescind, or com- delayed the mails, or committed other promise a fine or penalty. The decision delinquencies in the transportation of of the Vice President, Network Oper- mail, has failed to carry the mail in a ations Management on appeal shall be safe and secure manner, or has caused the final decision of the Postal Service. loss or damage to the mail, the facts The Postal Service may, in its discre- will be reported to International Net- tion, deduct from payment otherwise work Operations, Headquarters. due the carrier an amount necessary to (b) Review, investigation, recommenda- satisfy the penalty action taken under tion. International Network Operations this section. will investigate the matter, record (e) Details of administration. For fur- findings of fact, make a recommenda- ther administrative details, see USPS tion concerning the need for imposition of fine or penalty with reasons for the Purchasing Manual, chapter 4.

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

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PART 931—RULES OF PROCEDURE 946.7 Submission of claims. 946.8 Determination of claims. GOVERNING THE COMPROMISE 946.9 Reconsideration of claims. OF OBLIGATIONS 946.10 Record retention. 946.11 Disposition of property declared § 931.1 Compromise of obligations. abandoned. Any proposition of compromise shall AUTHORITY: 5 U.S.C. 552(a); 39 U.S.C. 401(2), be submitted in writing, and the (5), (8), 404(a)(7), 2003, 3001. amount offered in compromise shall be SOURCE: 53 FR 6986, Mar. 4, 1988, unless oth- deposited with the Manager, Account- erwise noted. ing Division or the appropriate postal data center. If the offer in compromise § 946.1 Scope of part. is rejected the amount deposited will This part prescribes procedures gov- be returned. The amount of a com- erning the disposition of recovered sto- promise offer must be tendered uncon- len mail matter and any other property ditionally for deposit pending the con- (real, personal, tangible or intangible) sideration of acceptance. Checks and obtained by the Postal Inspection Serv- drafts cannot be accepted as offers in ice for possible use as evidence after compromise when they bear endorse- the need to retain such property no ments or instructions to the effect that longer exists. Property obtained by the acceptance of such checks or drafts Postal Inspectors which appears to constitutes settlement in full of the have been loose in the mails but is not claim, fine, penalty, or liability in con- retained for use as evidence, except un- nection with which the offer is made, lawful matter, must be treated in ac- except that such checks or drafts may cordance with postal regulations con- be accepted when they are accom- cerning disposition of dead mail (see panied with a written waiver of the en- Domestic Manual (DMM) 159.4). Unlaw- dorsements or instructions printed ful matter must be disposed of in ac- thereon. Offers in compromise should cordance with § 946.3. be transmitted or delivered to the office or officer of the Postal Service § 946.2 Disposition of property of ap- from whom demand is received for pay- parent owners. ment of the amount due. Where an apparent owner of property (39 U.S.C. 401) subject to this part is known, the Chief Postal Inspector or delegate will mail, [26 FR 11662, Dec. 6, 1961. Redesignated at 33 FR 6291, April 25, 1968] by certified mail to the apparent owner’s last known address, written notice describing the property and the proce- Rules of Procedure Before the dure for filing a claim for its return Postal Inspection Service (see §§ 946.3 and 946.7). Such claims must be filed within 30 days from the PART 946—RULES OF PROCEDURE date the notice is postmarked. If the RELATING TO THE DISPOSITION apparent owner of the property fails to OF STOLEN MAIL MATTER AND file a timely claim, the property is con- PROPERTY ACQUIRED BY THE sidered abandoned and must be dis- POSTAL INSPECTION SERVICE posed of as provided in § 946.6. FOR USE AS EVIDENCE § 946.3 Contraband and property subject to court order. Sec. 946.1 Scope of part. Claims submitted with respect to 946.2 Disposition of property of apparent property subject to this part, posses- owners. sion of which is unlawful, must be de- 946.3 Contraband and property subject to nied, in writing, by certified mail and court order. the person submitting the claim must 946.4 Disposition of property of unknown be accorded 45 days from the post- owners. 946.5 Disposition of property having a value marked date to institute judicial proof less than $200. ceedings to challenge the denial. If ju- 946.6 Disposition of abandoned property; ad- dicial proceedings are not instituted ditional period for filing claims. within 45 days, or any extension of

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time for good cause shown, the contra- § 946.6 Disposition of abandoned prop- band property must be destroyed un- erty; additional period for filing less the Chief Postal Inspector or dele- claims. gate determines that it should be (a) Upon expiration of the time pro- placed in official use by the Postal In- vided in §§ 946.2 and 946.4(a)(3) for the spection Service. Property subject to filing of claims or any extension there- this part, the disposition of which is in- of, and without the receipt of a timely volved in litigation or is subject to an claim, the property described in the no- order of court, must be disposed of as tice is considered abandoned and be- determined by the court. comes the property of the United States Postal Service. However, if the § 946.4 Disposition of property of unknown owners. owner satisfies the requirements of § 946.6(b), except for property described (a) Where no apparent owner of prop- in § 946.3, such abandoned property erty subject to this part is known, ex- must be returned to the owner if a cept property described in § 946.3, and valid claim is filed within 3 years from the Chief Postal Inspector or delegate the date the property became aban- estimates that the fair market value of doned, with the following qualifica- the property exceeds $200, and the prop- tions: erty is not needed as evidence, the (1) Where property has been placed in Chief Postal Inspector or delegate must official use by the Postal Inspection publish notice providing the following Service, a person submitting a valid information: claim under this section must be reim- (1) A description of the property in- bursed the fair market value of the cluding model or serial numbers, if property at the time title vested in the known; United States Postal Service, less costs (2) The name, address, and telephone incurred by the Postal Service in re- number of the Postal Inspector in turning or attempting to return such Charge who has custody of the prop- property to the owner and; erty; and (2) Where property has been sold, a (3) A statement inviting any person person submitting a valid claim under who believes that he or she is fully en- this section must be reimbursed the titled to the property to submit a same amount as the last appraised claim for its return with the Postal In- value of the property prior to the sale spector in Charge who is identified in of such property. the notice. Such claim must be sub- (b) In order to present a valid claim mitted within 30 days from the date of under § 946.6(a), the claimant must es- first publication of the notice (See tablish that he or she had no actual or § 946.7). constructive notice prior to the date (b) The notice under § 946.4(a) must be the property became abandoned that he published once a week for three con- or she was entitled to file a claim pur- secutive weeks in a publication of gen- suant to § 946.2 or § 946.4. Publication of eral circulation within the judicial dis- notice pursuant to § 946.4 provides con- trict where the Postal Inspection Serv- structive notice unless a claimant can ice took possession of the property. demonstrate circumstances which reasonably precluded his access to the § 946.5 Disposition of property having a value of less than $200. published notice. Where the owner of property subject [53 FR 6986, Mar. 4, 1988, as amended at 63 FR to this part is unknown and the Chief 8126, Feb. 18, 1998] Postal Inspector or delegate estimates that fair market value of such property § 946.7 Submission of claims. is $200 or less, title to the property Claims submitted pursuant to this vests in the United States Postal Serv- part must be submitted on Postal Serv- ice, subject to the right of the owner to ice Form 1503 which may be obtained submit a valid claim as provided in from the Inspector in Charge who has § 946.6. custody of the property.

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§ 946.8 Determination of claims. Rules of Procedure Before the Upon receipt of a claim under this Judicial Officer part, the Postal Inspection Service must conduct an investigation to de- PART 951—PROCEDURE GOV- termine the merits of the claim. The ERNING THE ELIGIBILITY OF PER- results of the investigation must be SONS TO PRACTICE BEFORE THE submitted to the Chief Postal Inspector POSTAL SERVICE or delegate who must approve or deny the claim by written decision, a copy of Sec. which must be forwarded to the claim- 951.1 Authority for rules. ant by certified mail. If the claim is 951.2 Eligibility to practice. 951.3 Persons ineligible for admission to approved, the procedures to be followd practice. by the claimant to obtain return of the 951.4 Authorization of appearance may be property, or its determined value, must required. be stated. If the claim is denied, the de- 951.5 Complaint of misconduct. cision must state the reasons therefor. 951.6 Censure, suspension or disbarment; grounds. 951.7 Notice of disbarment; exclusion from § 946.9 Reconsideration of claims. practice. A written request for reconsideration 951.8 Ex parte communications. of denied claims may be submitted AUTHORITY: 39 U.S.C. 204, 401. within 10 days of the postmarked date SOURCE: 36 FR 11562, June 16, 1971, unless of the mailing denying the claim. Such otherwise noted. requests must be addressed to the Chief Postal Inspector or delegate and must § 951.1 Authority for rules. be based on evidence recently devel- The Judicial Officer promulgates oped or not previously presented. these rules pursuant to authority delegated by the Postmaster General. § 946.10 Record retention. § 951.2 Eligibility to practice. Records regarding property subject to this part will be retained for a pe- (a) Any individual who is a party to riod of 3 years following return of the any proceeding before the Judicial Offi- property to its owner or a determina- cer, the Board of Contract Appeals or tion that the property is abandoned. an Administrative Law Judge may appear for himself or by an attorney at § 946.11 Disposition of property de- law. clared abandoned. (b) The head of any department of the Postal Service may establish such Property declared abandoned, includ- special rules and regulations pering cash, and proceeds from the sale of taining to eligibility to practice before property subject to this part may be such department as he may deem to be shared by the Postal Inspection Service necessary or desirable. with federal, state, or local law en- (c) Generally, except as provided in forcement agencies. Unless the Chief § 951.3, any attorney at law who is a Postal Inspector determines that cash member in good standing of the Bar of or the proceeds of the sale of the aban- the Supreme Court of the United doned property are to be shared with States or of the highest court of any other law enforcement agencies, such State, District, Territory, Protectorate cash or proceeds shall be deposited in or Possession of the United States, or the Postal Service Fund established by of the District of Columbia, and is not 39 U.S.C. 2003. The authority to make under any order of any court or execu- this determination may be delegated tive department of one of the foregoing governmental entities suspending, en- by the Chief Postal Inspector. joining, restraining, disbarring, or oth- [59 FR 29372, June 7, 1994] erwise restricting him in the practice

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

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(6) Is otherwise guilty of misconduct 952.3 Informal dispositions. or lacking in character or professional 952.4 Office business hours. integrity. 952.5 Complaints. (b) Before any person shall be cen- 952.6 Interim impounding. 952.7 Notice of answer and hearing. sured, suspended or disbarred, he shall 952.8 Service. be afforded an opportunity to be heard 952.9 Filing documents for the record. by the Judicial Officer on the charges 952.10 Answer. made against him. The General Coun- 952.11 Default. sel or his designee shall prosecute such 952.12 Amendment of pleadings. cases. 952.13 Continuances and extensions. (c) In the event the Judicial Officer is 952.14 Hearings. 952.15 Change of place of hearings. unavailable for any reason, he may as- 952.16 Appearances. sign complaints of misconduct to the 952.17 Presiding officers. Associate Judicial Officer, an Adminis- 952.18 Evidence. trative Law Judge appointed pursuant 952.19 Subpoenas. to the provisions of the Administrative 952.20 Witness fees. Procedure Act, an Administrative 952.21 Depositions, interrogatories, requests Judge appointed pursuant to the provi- for admission of fact and production of documents. sions of the Contract Disputes Act of 952.22 Transcript. 1978, or some other disinterested mem- 952.23 Proposed findings and conclusions. ber of the headquarters staff of the 952.24 Decisions. Postal Service recommended by the 952.25 Exceptions to initial decision or ten- Deputy Postmaster General, for the de- tative decision. terminations required by § 951.5, the 952.26 Judicial Officer. conduct of the hearings, and the deci- 952.27 Motion for reconsideration. sion to censure, suspend, or debar per- 952.28 Orders. 952.29 Modification or revocation of orders. sons as provided herein. 952.30 Supplemental orders. [36 FR 11562, June 16, 1971, as amended at 51 952.31 Computation of time. FR 16517, May 5, 1986] 952.32 Official record. 952.33 Public information. § 951.7 Notice of disbarment; exclusion 952.34 Ex parte communications. from practice. AUTHORITY: 39 U.S.C. 204, 401, 3005, 3012, Upon the disbarment of any person, 3016. notice thereof will be given to the SOURCE: 36 FR 11563, June 16, 1971, unless heads of the departments of the Postal otherwise noted. Service and to the other Executive De- partments, and thereafter, until other- § 952.1 Authority for rules. wise ordered, such disbarred persons These rules of practice are issued by will not be entitled to practice before the Judicial Officer of the U.S. Postal the Postal Service or any department Service (See § 952.26) pursuant to au- thereof. thority delegated by the Postmaster General. § 951.8 Ex parte communications. The provisions of 5 U.S.C. 551(14), § 952.2 Scope of rules. 556(d) and 557(d) prohibiting ex parte These rules of practice shall be appli- communications are made applicable cable in all formal proceedings before to proceedings under these rules of the Postal Service, 39 U.S.C. 3005, in- practice. cluding such cases instituted under [42 FR 5357, Jan. 28, 1977] prior rules of practice pertaining to these or predecessor statutes, unless PART 952—RULES OF PRACTICE IN timely shown to be prejudicial to the PROCEEDINGS RELATIVE TO respondent. FALSE REPRESENTATION AND [36 FR 11563, June 16, 1971, as amended at 52 LOTTERY ORDERS FR 36763, Oct. 1, 1987] § 952.3 Informal dispositions. Sec. 952.1 Authority for rules. These rules do not preclude the dis- 952.2 Scope of rules. position of any matter by agreement

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between the parties either before or U.S. District Court, as provided in 39 after the filing of a complaint when U.S.C. 3007. time, the nature of the proceeding, and the public interest permit. § 952.7 Notice of answer and hearing. (a) When a complaint is filed against § 952.4 Office business hours. a Respondent whose mailing address is The offices of the officials mentioned within the United States, the Recorder in these rules are located at 2101 Wil- shall issue a notice of answer and hear- son Boulevard, Suite 600, Arlington, VA ing stating the date for filing an an- 22201–3078, and are open Monday swer which shall not exceed 15 days through Friday except holidays from from the service of the complaint, the 8:15 a.m. to 4:45 p.m. time and place of the hearing and a reference to the effect of failure to file an [63 FR 66050, Dec. 1, 1998] answer or appear at the hearing. (See §§ 952.10 and 952.11.) Whenever prac- § 952.5 Complaints. ticable, the hearing date shall be with- When the General Counsel of the in 30 days of the date of the notice. Postal Service or his designated rep- (b) Where a complaint is filed against resentative believes that a person is a Respondent whose mailing address is using the mails in a manner requiring not within the United States, the Judi- formal administrative action under 39 cial Officer shall review the complaint U.S.C. 3005, he shall prepare and file and any supporting information and with the Recorder a complaint which determine whether a prima facie show- names the person involved; states the ing has been made that Respondent is name, address and telephone number of engaged in conduct warranting the attorney representing Complain- issuance of the orders authorized by 39 ant; states the legal authority and ju- U.S.C. 3005(a) and/or the assessment of risdiction under which the proceeding civil penalties authorized by 39 U.S.C. is initiated; states the facts in a man- 3012. Where he concludes that a prima ner sufficient to enable the person facie showing has not been made he named therein to make answer thereto; shall dismiss the complaint. Where he and requests the issuance of an appro- concludes that a prima facie showing priate order or orders and/or the assess- has been made, he shall issue a ten- ment of civil penalties. Complainant tative decision and orders which: set shall attach to the complaint a copy of forth findings of fact and conclusions the order or orders requested which of law; direct Respondent to cease and may, at any time during the pro- desist from engaging in conduct war- ceedings, be modified. The person ranting the issuance of an order au- named in the complaint shall be known thorized by 39 U.S.C. 3005(a); direct as the ‘‘Respondent’’, and the General that postal money orders drawn to the Counsel shall be known as the ‘‘Com- order of Respondent not be paid for 45 plainant.’’ days from date of the tentative decision; direct that mail addressed to Re- The term ‘‘person’’ (1 U.S.C. 1) shall in- spondent be forwarded to designated fa- clude any name, address, number or cilities and detained for 45 days from other designation under or by use of the date of the tentative decision sub- which the Respondent seeks remit- ject to survey by Respondent and re- tances of money or property through lease of mail unrelated to the matter the mail. complained of; tentatively assess such [48 FR 55126, Dec. 9, 1983, as amended at 65 civil penalties as he considers appro- FR 32027, May 22, 2000; 67 FR 62179, Oct. 4, priate under applicable law; and pro- 2002] vide that unless Respondent presents, within 45 days of the date of the ten- § 952.6 Interim impounding. tative decision, good cause for dis- In preparation for or during the pend- missing the complaint, or modifying ency of a proceeding initiated under 39 the tentative decision and orders, the U.S.C. 3005, mail addressed to a re- tentative decision and orders shall be- spondent may be impounded upon ob- come final. The Judicial Officer may, taining an appropriate order from a upon a showing of good cause made

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within 45 days of the date of the ten- written statement by the Recorder not- tative decision, hold a hearing to deter- ing the time and place of mailing shall mine whether the tentative decision be accepted as evidence of service in and orders should be revoked, modified the event a signed return receipt is not or allowed to become final. Should a returned to the Recorder. hearing be granted, the Judicial Officer may modify the tentative decision and [36 FR 11563, June 16, 1971, as amended at 37 orders to extend the time during which FR 7321, Apr. 13, 1972; 44 FR 61959, Oct. 29, the payment of postal money orders 1979; 44 FR 65399, Nov. 13, 1979; 63 FR 66050, payable to Respondent is suspended Dec. 1, 1998] and mail addressed to Respondent is § 952.9 Filing documents for the detained. record. [44 FR 61959, Oct. 29, 1979, as amended at 48 (a) Each party shall file with the Re- FR 55126, Dec. 9, 1983; 65 FR 32027, May 22, 2000] corder pleadings, motions, proposed orders and other documents for the § 952.8 Service. record. The Recorder shall cause copies (a) Where the Respondent’s mailing to be delivered promptly to other par- address is within the United States, ties to the proceeding and to the pre- the Recorder shall cause a notice of an- siding officer. swer and hearing and a copy of the (b) The parties shall submit four cop- complaint to be transmitted to the ies of all documents unless otherwise postmaster at any office of address of ordered by the presiding officer. One the Respondent or to the inspector in copy shall be signed as the original. charge of any division in which the Re- (c) Documents shall be dated and spondent is doing business, which shall state the docket number and title of be delivered to the Respondent or his the proceeding. Any pleading or other agent by said postmaster or a super- document required by order of the pre- visory employee of his post office or a siding officer to be filed by a specified postal inspector. A receipt acknowl- date shall be delivered to the Recorder edging delivery of the notice shall be on or before such date. The date of fil- secured from the Respondent or his ing shall be entered thereon by the Re- agent and forwarded to the Recorder, corder. U.S. Postal Service, 2101 Wilson Boule- vard, Suite 600, Arlington, VA 22201– [36 FR 11563, June 16, 1971, as amended at 44 3078, to become a part of the official FR 61960, Oct. 29, 1979] record. (b) If, after 5 days, the postmaster or § 952.10 Answer. his agent can find no person to accept (a) The answer shall contain a con- service of the notice of answer and cise statement admitting, denying, or hearing and complaint pursuant to explaining each of the allegations set paragraph (a) of this section, the notice forth in the complaint. may be delivered in the usual manner (b) Any facts alleged in the com- as other mail addressed to the respond- plaint which are not denied or are ex- ent. A statement, showing the time pressly admitted in the answer may be and place of delivery, signed by the considered as proved, and no further postal employee who delivered the no- evidence regarding these facts need be tice of answer and hearing and com- adduced at the hearing. plaint shall be forwarded to the Re- corder and such statement shall con- (c) The answer shall be signed person- stitute evidence of service. ally by an individual respondent, or in (c) Where the only address against the case of a partnership by one of the which Complainant seeks relief is out- partners, or, in the case of a corpora- side the United States, a copy of the tion or association, by an officer there- complaint, the tentative decision, and of. a copy of these rules of practice shall (d) The answer shall set forth the Re- be sent by registered air mail, return spondent’s address and telephone num- receipt requested, by the Recorder to ber or the name, address and telephone the address cited in the complaint. A number of its attorney.

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(e) The answer shall affirmatively Such amendments as may be necessary state whether the respondent will ap- to make the pleadings conform to the pear in person or by counsel at the evidence and to raise such issues shall hearing. be allowed at any time upon the mo- (f) If the respondent does not desire tion of any party. to appear at the hearing in person or (d) If a party objects to the introduc- by counsel he may request that the tion of evidence at the hearing on the matter be submitted for determination ground that it is not within the issues pursuant to paragraph (b) of § 952.11. made by the pleadings, but fails to sat- [36 FR 11563, June 16, 1971, as amended at 44 isfy the presiding officer that an FR 61960, Oct. 29, 1979] amendment of the pleadings would prejudice him on the merits, the pre- § 952.11 Default. siding officer may allow the pleadings (a) If the Respondent fails to file an to be amended and may grant a con- answer within the time specified in the tinuance to enable the objecting party notice of answer and hearing, he shall to rebut the evidence presented. be deemed in default, and to have (e) The presiding officer may, upon waived hearing and further procedural reasonable notice and upon such terms steps. The Judicial Officer shall there- as are just, permit service of a supple- after issue orders and/or assess civil mental pleading setting forth trans- penalties without further notice to the actions, occurrences, or events which Respondent. have happened since the date of the (b) If the Respondent files an answer but fails to appear at the hearing, the pleading sought to be supplemented Respondent may, unless timely indica- and which are relevant to any of the tions to the contrary are received, be issues involved. deemed to have abandoned the inten- [36 FR 11563, June 16, 1971, as amended at 44 tion to present a defense to the charges FR 61960, Oct. 29, 1979] of the complaint, and the Judicial Offi- cer, without further notice to Respond- § 952.13 Continuances and extensions. ent, may issue the orders and/or assess Continuances and extensions will not civil penalties sought in the complaint. be granted by the presiding officer ex- [48 FR 55126, Dec. 9, 1983, as amended at 65 cept for good cause shown. FR 32027, May 22, 2000] § 952.14 Hearings. § 952.12 Amendment of pleadings. Hearings are held at 2101 Wilson Bou- (a) Amendments proposed prior to levard, Suite 600, Arlington, VA 22201– the hearing shall be filed with the Re- 3078, or other locations designated by corder. Amendments proposed there- the presiding officer. after shall be filed with the presiding officer. [63 FR 66050, Dec. 1, 1998] (b) By consent of the parties a pleading may be amended at any time. Also, § 952.15 Change of place of hearings. a party may move to amend a pleading Not later than the date fixed for the at any time prior to the close of the filing of the answer, a party may file a hearing and, provided that the amend- request that a hearing be held to re- ment is reasonably within the scope of ceive evidence in his behalf at a place the proceeding initiated by the com- other than that designated for hearing plaint, the presiding officer shall make in the notice. He shall support his re- such ruling on the motion as he deems quest with a statement outlining: to be fair and equitable to the parties. (c) When issues not raised by the (a) The evidence to be offered in such pleadings but reasonably within the place; scope of the proceedings initiated by (b) The names and addresses of the the complaint are tried by express or witnesses who will testify; implied consent of the parties, they (c) The reasons why such evidence shall be treated in all respects as if cannot be produced at Arlington, VA. they had been raised in the pleadings.

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The presiding officer shall give consid- less a timely appeal is taken: The Judi- eration to the convenience and neces- cial Officer may issue a tentative or a sity of the parties and the relevancy of final decision; the evidence to be offered. (10) Rule upon applications and requests filed under § 952.19 and § 952.21. [36 FR 11563, June 16, 1971, as amended at 63 FR 66050, Dec. 1, 1998] [36 FR 11563, June 16, 1971, as amended at 38 FR 17216, June 29, 1973; 38 FR 20263, July 30, § 952.16 Appearances. 1973; 44 FR 61960, Oct. 29, 1979; 65 FR 32027, (a) A respondent may appear and be May 22, 2000] heard in person or by attorney. § 952.18 Evidence. (b) An attorney may practice before the Postal Service in accordance with (a) Except as otherwise provided in applicable rules issued by the Judicial these rules, the Federal Rules of Evi- Officer. See part 951 of this chapter. dence shall govern. However, such rules (c) When a respondent is represented may be relaxed to the extent that the by an attorney, all pleadings and other presiding officer deems proper to in- papers subsequent to the complaint sure a fair hearing. The presiding offi- shall be mailed to the attorney. cer shall exclude irrelevant, immate- (d) A respondent must promptly file a rial or repetitious evidence. notice of change of attorney. (b) Testimony shall be under oath or affirmation and witnesses shall be sub- § 952.17 Presiding officers. ject to cross-examination. (a) The presiding officer at any hear- (c) Agreed statements of fact may be ing shall be an Administrative Law received in evidence. Judge qualified in accordance with law (d) Official notice or knowledge may or the Judicial Officer (39 U.S.C. 204). be taken of the types of matters of The Chief Administrative Law Judge which judicial notice or knowledge shall assign cases to Administrative may be taken. Law Judges upon rotation so far as (e) Authoritative writings of the practicable. The Judicial Officer may, medical or other sciences, may be ad- for good cause shown, preside at the remitted in evidence but only through ception of evidence in proceedings the testimony of expert witnesses or by where expedited hearings are requested stipulation. (f) Lay testimonials will not be re- by either party. ceived in evidence as proof of the effi- (b) The presiding officer shall have cacy or quality of any product or thing authority to: sold through the mails. (1) Administer oaths and affirma- (g) The written statement of a com- tions; petent witness may be received in evi- (2) Examine witnesses; dence provided that such statement is (3) Rule upon offers of proof, admissi- relevant to the issues, that the witness bility of evidence and matters of proce- shall testify under oath at the hearing dure; that the statement is in all respects (4) Order any pleading amended upon true, and, in the case of expert wit- motion of a party at any time prior to nesses, that the statement correctly the close of the hearing; states his opinion or knowledge con- (5) Maintain discipline and decorum cerning the matters in question. and exclude from the hearing any per- (h) A party who objects to the admis- son acting in an indecorous manner; sion of evidence shall make a brief (6) Require the filing of briefs or statement of the grounds for the objec- memoranda of law on any matter upon tion. Formal exceptions to the rulings which he is required to rule; (7) Order prehearing conferences for of the presiding officer are unneces- the purpose of the settlement or sim- sary. plification of issues by the parties; [36 FR 11563, June 16, 1971, as amended at 44 (8) Order the proceeding reopened at FR 61960, Oct. 29, 1979] any time prior to his decision for the receipt of additional evidence; § 952.19 Subpoenas. (9) Render an initial decision, which (a) General. Upon written request of becomes the final Agency decision un- either party filed with the Recorder or

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on his own initiative, the presiding of- a copy has been served upon the oppos- ficer may issue a subpoena requiring: ing party. (1) Testimony at a deposition. The de- (e) Form; issuance. (1) Every subpoena posing of a witness in the city or coun- shall state the title of the proceeding, ty where the witness resides or is em- shall cite 39 U.S.C. 3016(a)(2) as the au- ployed or transacts business in person, thority under which it is issued, and or at another location convenient for shall command each person to whom it the witness that is specifically deter- is directed to attend and give testi- mined by the presiding officer; mony, and if appropriate, to produce (2) Testimony at a hearing. The attend- specified records at a time and place ance of a witness for the purpose of therein specified. In issuing a subpoena taking testimony at a hearing; and to a requesting party, the presiding of- (3) Production of records. In addition ficer shall sign the subpoena and may, to paragraphs (a)(1) and (a)(2) of this in his discretion, enter the name of the section, the production by the witness witness and otherwise leave it blank. at the deposition or hearing of records The party to whom the subpoena is designated in the subpoena. issued shall complete the subpoena be- (b) Voluntary cooperation. Each party fore service. is expected: (2) The party at whose instance a (1) To cooperate and make available subpoena is issued shall be responsible witnesses and evidence under its con- for the payment of fees and mileage of trol as requested by the other party, the witness and of the officer who without issuance of a subpoena, and serves the subpoena. The failure to (2) To secure voluntary production of make payment of such charges on de- desired third-party records whenever mand may be deemed by the presiding possible. officer as sufficient ground for striking (c) Requests for subpoenas. (1) A re- the testimony of the witness and the quest for a subpoena shall to the extent evidence the witness has produced. practical be filed: (f) Service. (1) In general. The party (i) At the same time a request for requesting issuance of a subpoena shall deposition is filed; or arrange for service. (ii) 15 days before a scheduled hearing (2) Service within the United States. A where the attendance of a witness at a subpoena issued under this section may hearing is sought. be served by a person designated under (2) A request for a subpoena shall 18 U.S.C. 3061 or by a United States state the reasonable scope and general marshal or deputy marshal, or by any relevance to the case of the testimony other person who is not a party and not and of any records sought. less than 18 years of age at any place (3) The presiding officer, in his dis- within the territorial jurisdiction of cretion, may honor requests for sub- any court of the United States. poenas not made within the time limi- (3) Foreign Service. Any such subpoena tations specified in this paragraph. may be served upon any person who is (d) Requests to quash or modify. Upon not to be found within the territorial written request by the person subpoe- jurisdiction of any court of the United naed or by a party, made within 10 days States, in such manner as the Federal after service but in any event not later Rules of Civil Procedure prescribe for than the time specified in the subpoena service in a foreign country. To the ex- for compliance, the presiding officer tent that the courts of the United may: States may assert jurisdiction over (1) Quash or modify the subpoena if it such person consistent with due proc- is unreasonable and oppressive or for ess, the United States District Court other good cause shown, or for the District of Columbia shall have (2) require the person in whose behalf the same jurisdiction to take any ac- the subpoena was issued to advance the tion respecting compliance with this reasonable cost of producing subpoe- section by such person that such court naed records. Where circumstances re- would have if such person were person- quire, the presiding officer may act ally within the jurisdiction of such upon such a request at any time after court.

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(4) Service on Business Persons. Service § 952.20 Witness fees. of any such subpoena may be made The Postal Service does not pay fees upon a partnership, corporation, asso- and expenses for respondent’s witnesses ciation, or other legal entity by: or for depositions requested by re- (i) Delivering a duly executed copy spondent. thereof to any partner, executive officer, managing agent, or general agent § 952.21 Depositions, interrogatories, thereof, or to any agent thereof au- requests for admission of fact and thorized by appointment or by law to production of documents. receive service of process on behalf of (a) Not later than 5 days after the fil- such partnership, corporation, associa- ing of Respondent’s answer, any party tion, or entity; may file application with the Recorder (ii) Delivering a duly executed copy for the taking of testimony by deposi- thereof to the principal office or place tion. In support of such application the of business of the partnership, corpora- applicant shall submit under oath or tion, association, or entity; or affirmation a statement setting out (iii) Depositing such copy in the the reasons why such testimony should United States mails, by registered or be taken by deposition, the time and certified mail, return receipt re- the place, and the name and address of quested, duly addressed to such part- the witness whose deposition is desired, nership, corporation, association, or the subject matter of the testimony of entity at its principal office or place of each witness and its relevancy. business. (b) If the application is granted, the (5) Service on Natural Persons. Service order for the taking of the deposition of any subpoena may be made upon any will specify the time and place thereof, natural person by: the name of the witness, and require (i) delivering a duly executed copy to that the deposition be taken before a the person to be served; or person authorized to administer oaths (ii) depositing such copy in the as required by paragraph (f) of this sec- United States mails, by registered or tion. certified mail, return receipt re- (c) Each witness testifying upon dep- quested, duly addressed to such person osition shall be duly sworn, and the ad- at his residence or principal office or verse party shall have the right to place of business. cross-examine. The questions and answers together with all objections, (6) Verified Return. A verified return shall be reduced to writing and, unless by the individual serving any such sub- waived by stipulation of the parties, poena setting forth the manner of such shall be read to and subscribed by the service shall be proof of service. In the witness in the presence of the deposi- case of service by registered or cer- tion officer who shall certify it in the tified mail, such return shall be accom- usual form. The deposition officer shall panied by the return post office receipt file the testimony taken by deposition of delivery of such subpoena. as directed in the order. The deposition (g) Contumacy or refusal to obey a sub- officer shall put the witness on oath. poena. In the case of contumacy or re- All objections made at the time of ex- fusal to obey a subpoena, the Judicial amination shall be noted by the deposi- Officer may request the Attorney Gen- tion officer and the evidence objected eral to petition the district court for to shall be taken subject to the objec- any district in which the person receiv- tions. In lieu of participating in the ing the subpoena resides, is found, or oral examination, a party may trans- conducts business (or in the case of a mit written interrogatories to the offi- person outside the territorial jurisdic- cer, who shall propound them to the tion of any district court, the district witness and record the answers ver- court for the District of Columbia) to batim. Objections to relevancy or ma- issue an appropriate order for the en- teriality of testimony, or to errors and forcement of such subpoena. Any fail- irregularities occurring at the oral ex- ure to obey such order of the court amination in the manner of taking the may be punishable as contempt. deposition, in the form of the questions [65 FR 32027, May 22, 2000] or answers, in the oath or affirmation,

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or in the conduct of the parties and er- atories propounding questions of fact rors of any kind which might be obvi- may be answered by the witness in ated, cured or removed if promptly pre- writing, without the presence of an of- sented, are waived unless timely objec- ficer and without being recorded by a tion is made at the taking of the depo- stenographic reporter, provided the an- sition. swers are sworn to by the witness be- (d) At the hearing any part or all of fore a person authorized to administer the deposition may be offered in evi- an oath prescribed by paragraph (f). dence by any party who was present or (h) Not later than 5 days after the fil- represented at the taking of the deposition or who had notice thereof. If the ing of Respondent’s answer, any party deposition is not offered and received may serve on the other party a request in evidence, it shall not be considered for the admission of specified facts. In as a part of the record in the pro- the event the party served refuses ceeding. The admissibility of deposi- timely to respond to the request for ad- tions or parts thereof shall be governed missions, the presiding officer for good by the rules of evidence. cause shown may require the party (e) The party requesting the deposi- served to admit or deny each requested tion shall pay all fees required to be fact. The factual propositions set out paid to witnesses and the deposition of- in the request shall be deemed admit- ficer, and shall provide an original and ted upon the failure of a party to re- one copy of the deposition for the offi- spond to the presiding officer’s order cial record, and shall serve one copy for admission or denial. upon the opposing party. (i) Not later than 5 days after the fil- (f) Within the United States or with- ing of Respondent’s answer, either in a territory or insular possession, party may file an application for the subject to the dominion of the United production of documents or objects. States, depositions or interrogatories may be taken or certified before an of- The application shall state the cause ficer authorized to administer oaths by therefor and specifically identify the the laws of the United States or of the documents or objects and their rel- place where the examination is held; evance and materiality to the cause or within a foreign country, depositions causes in issue. The presiding officer or interrogatories may be taken or cer- may order the other party to produce tified before a secretary of an embassy and permit the inspection and or legation, consul general, vice consul photographing of any designated docu- or consular agent of the United States, ments or objects not privileged which or any other person designated in the are reasonably calculated to lead to order for the taking of a deposition. the discovery of admissible evidence. If (g) Depositions may also be taken the parties cannot themselves agree and submitted on written interrog- thereon, the presiding officer shall atories in substantially the same man- specify such terms and conditions in ner as depositions taken by oral exam- making the inspection and taking the ination. When a deposition is taken copies and photographs. upon written interrogatories and cross- (j) Failure of a party to comply with interrogatories, none of the parties except a witness who is a party shall be an order pursuant to this rule may represent or represented, and no person, sult in the presiding officer’s ruling other than the witness, a stenographic that the disobedient party may not reporter, and the officer shall be support or oppose designated charges present at the examination of the wit- or defenses or may not introduce des- ness, which fact shall be certified by ignated matters in evidence. The pre- the officer, who shall propound the in- siding officer may also infer from the terrogatories and cross-interrogatories disobedient party’s failure to comply to the witness in their order and reduce with the order that the facts to which the testimony to writing in the wit- the order related would, if produced or ness’ own words. For good cause shown or by stipulation of the parties, written interrogatories and cross-interrog-

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admitted, be adverse to such party’s in- changes ordered by the presiding offi- terests. The admissibility of matter ad- cer other than by agreement of the par- duced by operation of § 952.21 shall be ties shall be subject to objection and governed by § 952.18. exception. [36 FR 11563, June 16, 1971, as amended at 44 [36 FR 11563, June 16, 1971, as amended at 44 FR 61960, Oct. 29, 1979; 44 FR 65399, Nov. 13, FR 61961, Oct. 29, 1979] 1979] § 952.23 Proposed findings and conclu- § 952.22 Transcript. sions. (a) Hearings shall be stenographi- (a) Each party to a proceeding, ex- cally reported by a contract reporter of cept one who fails to answer the com- the Postal Service under the super- plaint or, having answered, either fails vision of the assigned presiding officer. to appear at the hearing or indicates in Argument upon any matter may be ex- the answer that he does not desire to cluded from the transcript by order of appear, may, unless at the discretion of the presiding officer. A copy of the the presiding officer such is not appro- transcript shall be a part of the record priate, submit proposed findings of and the sole official transcript of the fact, conclusions of law, orders and proceeding. Copies of the transcript supporting reasons either in oral or shall be supplied to the parties to the written form in the discretion of the proceeding by the reporter at rates not presiding officer. The presiding officer to exceed the maximum rates fixed by may also require parties to any pro- contract between the Postal Service ceeding to submit proposed findings of and the reporter. Copies of parts of the fact, conclusions of law, orders, and official record including exhibits ad- supporting reasons. Unless given oral- mitted into evidence, other than the ly, the date set for filing of proposed transcript, may be obtained by the Re- findings of fact, conclusions of law, or- spondent from the Recorder upon the ders and supporting reasons shall be payment of reasonable copying within 15 days after the delivery of the charges. Items that cannot reasonably official transcript to the Recorder who be photocopied may be photographed shall notify both parties of the date of and furnished in that form to Respond- its receipt. The filing date for proposed ent. findings of fact, conclusions of law, or- (b) Changes in the official transcript ders and supporting reasons shall be may be made only when they involve the same for both parties. If not sub- errors affecting substance and then mitted by such date, or unless exten- only in the manner herein provided. No sion of time for the filing thereof is physical changes shall be made in or granted, they will not be included in upon the official transcript, or copies the record or given consideration. thereof, which have been filed with the (b) Except when presented orally be- record. Within 10 days after the receipt fore the close of the hearing, proposed by any party of a copy of the official findings of fact shall be set forth in se- transcript, or any part thereof, he may rially numbered paragraphs and shall file a motion requesting correction of state with particularity all evidentiary the transcript. Opposing counsel shall, facts in the record with appropriate ci- within such time as may be specified tations to the transcript or exhibits by the presiding officer, notify the pre- supporting the proposed findings. Each siding officer in writing of his concur- proposed conclusion shall be separately rence or disagreement with the restated. quested corrections. Failure to inter- (c) Except when presented orally be- pose timely objection to a proposed fore the close of the hearing, proposed correction shall be considered to be orders shall state the statutory basis of concurrence. Thereafter, the presiding the order and, with respect to orders officer shall by order specify the cor- proposed to be issued pursuant to 39 rections to be made in the transcript. U.S.C. 3005(a)(3), shall be set forth in The presiding officer on his own initia- serially numbered paragraphs stating tive may order corrections to be made with particularity the representations in the transcript with prompt notice to Respondent and its representatives the parties of the proceeding. Any shall cease and desist from using for

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the purpose of obtaining money or (b) A party in a proceeding presided property through the mail. over by the Judicial Officer, except one who has failed to file an answer, may [48 FR 55126, Dec. 9, 1983] file exceptions within 15 days from the receipt of the Judicial Officer’s ten- § 952.24 Decisions. tative 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 may Law Judge with all due speed. The ini- then orally give notice to the parties tial decision shall include findings and participating in the hearing of the time conclusions with the reasons therefor limit within which an appeal must be upon all the material issues of fact or filed. law presented on the record, and the (d) The date for filing the reply to an appropriate orders or denial thereof. appeal brief or to a brief in support of The initial decision shall become the exceptions to a tentative decision by final Agency decision unless an appeal the Judicial Officer is 10 days after the is taken in accordance with § 952.25. receipt thereof. No additional briefs (b) Tentative or final decision by the shall be received unless requested by Judicial Officer. When the Judicial Offi- the Judicial Officer. cer presides at the hearing he shall (e) Briefs upon appeal or in support of issue a final or a tentative decision. exceptions to a tentative decision by Such decision shall include findings the Judicial Officer and replies thereto and conclusions with the reasons there- shall be filed in triplicate with the Re- for upon all the material issues of fact corder and contain the following mat- or law presented on the record, and the ter in the order indicated: appropriate orders or denial thereof. (1) A subject index of the matters The tentative decision shall become presented, with page references; a table the final Agency decision unless excep- of cases alphabetically arranged; a list tions are filed in accordance with of statutes and texts cited with page § 952.25. references. (c) Oral decisions. The presiding Offi- (2) A concise abstract or statement of cer may render an oral decision (an ini- the case in briefs on appeal or in sup- tial decision by an Administrative Law port of exceptions. Judge, or a tentative or final decision (3) Numbered exceptions to specific by the Judicial Officer) at the close of findings and conclusions of fact, con- the hearing when the nature of the clusions of law, or recommended orders case and the public interest warrant. A of the presiding officer in briefs on ap- party who desires an oral decision shall peal or in support of exceptions. notify the presiding officer and the op- (4) A concise argument clearly set- posing party at least 5 days prior to the ting forth points of fact and of law re- date set for the hearing. Either party lied upon in support of or in opposition may submit proposed findings, conclu- to each exception taken, together with sions, and proposed orders either orally specific references to the parts of the or in writing at the conclusion of the record and the legal or other authori- hearing. ties relied upon. (f) Unless permission is granted by [48 FR 55126, Dec. 9, 1983] the Judicial Officer no brief shall exceed 50 printed or 100 typewritten pages § 952.25 Exceptions to initial decision double spaced. or tentative decision. (g) The Judicial Officer will extend (a) A party in a proceeding presided the time to file briefs only upon writ- over by an Administrative Law Judge, ten application for good cause shown. except a party who failed to file an an- The Recorder shall promptly notify the swer, may appeal to the Judicial Offi- applicant of the decision of the Judi- cer by filing exceptions in a brief on cial Officer on the application. If the appeal within 15 days from the receipt appeal brief or brief in support of ex- of the Administrative Law Judge’s ini- ceptions is not filed within the time tial decision. prescribed, the defaulting party will be

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deemed to have abandoned the appeal (b) If an order is issued which re- or waived the exceptions, and the ini- quires the Respondent to cease and de- tial or tentative decision shall become sist from using certain representations the final Agency decision. for the purpose of obtaining money or property through the mail, it shall be [36 FR 11563, June 16, 1971, as amended at 38 incorporated in the record of the pro- FR 17216, June 29, 1973; 44 FR 61961, Oct. 29, 1979; 48 FR 55127, Dec. 9, 1983] ceeding and a copy thereof shall be served upon the Respondent or his § 952.26 Judicial Officer. agent by certified mail or by personal service, or if no person can be found to The Judicial Officer is authorized: (a) accept service, service shall be accom- To act as presiding officer at hearings, plished by ordinary mail to the last (b) to render tentative decisions, (c) to known address of Respondent or his render final Agency decisions, (d) to agent. If service is not accomplished by issue Postal Service orders for the certified mail, a statement, showing Postmaster General, (e) to refer the the time and place of delivery, signed record in any proceeding to the Post- by the postal employee who delivered master General or the Deputy Post- the order, shall be forwarded to the Re- master General for final Agency deci- corder. sion, (f) to remand a case to the presiding officer for consideration, (g) to [36 FR 11563, June 16, 1971, as amended at 38 revise or amend these rules of practice. FR 17216, June 29, 1973; 44 FR 61961, Oct. 29, In determining appeals from initial de- 1979; 48 FR 55127, Dec. 9, 1983] cisions or exceptions to tentative decisions (see § 952.24 (a) and (b) supra), the § 952.29 Modification or revocation of orders. entire official record will be considered before a final Agency decision is ren- A party against whom an order or ordered. Before rendering a final Agency ders have been issued may file an appli- decision, the Judicial Officer may cation for modification or revocation order the hearing reopened for the thereof. The Recorder shall transmit a presentation of additional evidence by copy of the application to the General the parties. Counsel, who shall file a written reply within 10 days after filing or such other [44 FR 61961, Oct. 29, 1979] period as the Judicial Officer may fix. A copy of the reply shall be sent to the § 952.27 Motion for reconsideration. applicant by the Recorder. Thereafter A party may file a motion for recon- an order granting or denying such ap- sideration of a final agency decision plication will be issued by the Judicial within 10 days after receiving it or Officer. within such longer period as the Judi- [48 FR 55127, Dec. 9, 1983] cial Officer may fix. Each motion for reconsideration shall be accompanied § 952.30 Supplemental orders. by a brief clearly setting forth the points of fact and of law relied upon in When the General Counsel or his des- support of said motion. ignated representative shall have reason to believe that a person is evading [36 FR 11563, June 16, 1971, as amended at 38 or attempting to evade the provisions FR 17216, June 29, 1973] of any such orders by conducting the same or a similar enterprise under a § 952.28 Orders. different name or at a different address (a) If an order is issued which pro- he may file a petition with accom- hibits delivery of mail to a respondent panying evidence setting forth the al- it shall be incorporated in the record of leged evasion or attempted evasion and the proceeding. The Recorder shall requesting the issuance of a supple- cause notice of the order to be pub- mental order or orders against the lished in the Postal Bulletin and cause name or names allegedly used. Notice the order to be transmitted to such shall then be given by the Recorder to postmasters and other officers and em- the person that the order has been re- ployees of the Postal Service as may be quested and that an answer may be required to place the order into effect. filed within 10 days of the notice. The

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Judicial Officer, for good cause shown, 953.11 Proposed findings of fact and conclu- may hold a hearing to consider the sions of law. issues in controversy, and shall, in any 953.12 Initial decision. 953.13 Appeal from initial decision. event, render a final decision granting 953.14 Final Agency decision. or denying the supplemental order or 953.15 Expedition. orders. 953.16 Disposition. 953.17 Ex parte communications. [48 FR 55127, Dec. 9, 1983] AUTHORITY: 39 U.S.C. 204, 401. § 952.31 Computation of time. SOURCE: 59 FR 31538, June 20, 1994, unless A designated period of time under otherwise noted. these rules excludes the day the period begins, and includes the last day of the § 953.1 Authority for rules. period unless the last day is a Satur- These rules of practice are issued by day, Sunday, or legal holiday, in which the Judicial Officer of the U.S. Postal event the period runs until the close of Service pursuant to authority dele- business on the next business day. gated by the Postmaster General.

§ 952.32 Official record. § 953.2 Initiation. The transcript of testimony together Mailability proceedings are initiated with all pleadings, orders, exhibits, upon the filing of a written appeal with briefs and other documents filed in the the Recorder, Judicial Officer Depart- proceeding shall constitute the official ment, U.S. Postal Service, 2101 Wilson record of the proceeding. Boulevard, Suite 600, Arlington, VA 22201–3078. § 952.33 Public Information. [63 FR 66050, Dec. 1, 1998] 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 [48 FR 55127, Dec. 9, 1983, as amended at 67 being appealed; FR 62179, Oct. 4, 2002] (c) Describe the character or content of the matter the appellant wishes to § 952.34 Ex parte communications. have carried and delivered by the U.S. The provisions of 5 U.S.C. 551(14), Postal Service; 556(d) and 557(d) prohibiting ex parte (d) Request review of the determina- communications are made applicable tion or ruling, specifying each and to proceedings under these rules of every reason why the appellant be- practice. lieves the determination or ruling should be reversed; [42 FR 5357, Jan. 28, 1977] (e) Indicate whether the appellant desires to have an oral hearing or, in- PART 953—RULES OF PRACTICE IN stead, to have the case decided solely PROCEEDINGS RELATIVE TO on the basis of the written record (i.e., MAILABILITY the appeal, the General Counsel’s reply, and any documents submitted by Sec. the parties pursuant to an order of the 953.1 Authority for rules. presiding officer); and 953.2 Initiation. (f) Bear the signature, typed or print- 953.3 Appeal. ed name, title, business address, and 953.4 Service of notice; Reply; Motion for telephone number of any attorney at summary judgment. law representing the appellant in 953.5 Hearings. bringing the appeal, and of each indi- 953.6 Compromise and informal dispositions. 953.7 Default; Appearances. vidual appellant or, if the appellant is 953.8 Location of hearing. a partnership, corporation, limited li- 953.9 Change of place of hearing. ability company, or unincorporated as- 953.10 Presiding officers. sociation, of the managing partner,

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chief executive officer, chief operating and answer present no genuine and ma- officer, or other officer authorized to terial issues of fact requiring an evi- bind the organization. dentiary hearing, and thereupon may render an initial decision upholding or § 953.4 Service of notice; Reply; Motion reversing the determination or ruling. for summary judgment. The initial decision shall become the (a) Service of notice. (1) Upon receiving final Agency decision if a timely ap- the appeal, the Recorder shall issue a peal is not taken. notice specifying that the Postal Serv- ice General Counsel’s reply shall be § 953.5 Hearings. filed within 15 days of receipt of the no- (a) In general, admissibility of evi- tice; and the time and place of the dence at hearings conducted under this hearing (if one was requested). part hinges on relevancy and materi- (2) The Recorder shall promptly serve ality. However, relevant evidence may this notice on the parties as follows: be excluded if its probative value is (i) The notice, with a copy of the ap- substantially outweighed by the danger peal, shall be sent to the General Coun- of unfair prejudice, or by consider- sel at Postal Service headquarters. ations of undue delay, or by needless (ii) When the appellant’s address is presentation of cumulative evidence. within the United States, the notice, Testimony shall be given under oath or with a copy of the appeal, shall be sent affirmation, and witnesses are subject to the postmaster at the office that de- to cross-examination. Stipulations of livers mail to the appellant’s address. fact are encouraged and may be re- The postmaster shall be instructed ceived in evidence. that, acting personally or through a (b) Objections to the admission or ex- supervisory employee or a postal inclusion of evidence shall be in short spector, he or she is to serve these doc- form, stating the grounds of objections uments on the appellant. If the appel- relied upon. The transcript shall not lant cannot be found within 3 days, the include argument or debate thereon ex- postmaster shall send these documents cept as ordered by the presiding officer. to the appellant by ordinary mail and Rulings on such objections shall be a forward a statement to the Recorder part of the transcript. that is signed by the delivering em- (c) Formal exceptions to the rulings ployee and that specifies the time and of the presiding officer made during place of delivery. the course of the hearing are unneces- (iii) When the appellant’s address is sary. For all purposes for which an ex- outside the United States, the notice, ception otherwise would be taken, it is with a copy of the appeal, shall be sent sufficient that a party, when the ruling to the appellant by registered airmail, of the presiding officer is made or return receipt requested. A written sought, makes known the action he de- statement by the Recorder, noting the sires the presiding officer to take or his time and place of mailing, shall be ac- objection to an action taken, and his cepted as proof of service in the event grounds therefor. a signed and dated return receipt is not received. § 953.6 Compromise and informal dis- (b) Reply. The General Counsel shall positions. file a written reply, in triplicate, with Either party may request the other the Recorder, within the aforemen- to consider informal disposition of any tioned 15-day period or any extension question of mailability, and the sched- granted by the presiding officer for uled hearing date may be postponed by good cause shown. If the General Coun- the presiding officer for such period of sel’s reply fails to address any allega- time as may be necessary to accommo- tion in the appeal, that allegation shall date settlement discussions between be deemed admitted. the parties. (c) Motion for summary judgment. Upon motion of either the General § 953.7 Default; Appearances. Counsel or the appellant, or on the pre- If a timely reply to the appeal is not siding officer’s own initiative, the prefiled, the presiding officer shall refer siding officer may find that the appeal the appeal to the Judicial Officer, who

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may find that the General Counsel is in § 953.11 Proposed findings of fact and default. Whenever the General Counsel conclusions of law. has been deemed to be in default, the Proposed findings of fact and conclu- Judicial Officer shall take whatever ac- sions of law shall be submitted orally tion on the appeal he deems appro- or in writing at the conclusion of the priate. If an oral evidentiary hearing is hearing, or otherwise, as ordered by to be held, the appellant may appear at the presiding officer. the hearing in person or by counsel. If either party fails to appear at the hear- § 953.12 Initial decision. ing, the presiding officer shall receive Unless given orally at the conclusion the evidence of the party appearing and of the hearing, the Administrative Law render a decision. Judge shall render an initial decision as expeditiously as practicable after § 953.8 Location of hearing. the conclusion of the hearing and the Unless otherwise ordered by the pre- receipt of the proposed findings and siding officer, the hearing shall be held conclusions, if any. The initial decision at 2101 Wilson Boulevard, Suite 600, Ar- shall become the decision of the Postal lington, VA 22201–3078, on the date set Service if an appeal is not perfected. When the Judicial Officer presides at in the notice. the hearing, his powers shall include [63 FR 66050, Dec. 1, 1998] those of an Administrative Law Judge, but the Judicial Officer may render ei- § 953.9 Change of place of hearing. ther an initial or final decision. Excep- (a) Not later than the date fixed for tions may be filed to an initial decision the filing of the reply, a party may file rendered by the Judicial Officer in ac- a motion that the scheduled hearing be cordance with § 953.13. held at a place other than that des- § 953.13 Appeal from initial decision. ignated in the notice. The motion shall include a supporting statement out- Either party may file exceptions in a lining: brief on appeal to the Judicial Officer within 5 days after receipt of the ini- (1) The evidence to be offered in such tial decision unless additional time is place; granted. A reply brief may be filed (2) The names and addresses of the within 5 days after the receipt of the witnesses who will testify; and appeal brief by the opposing party. (3) The reasons why such evidence cannot be presented in Arlington, VA. § 953.14 Final Agency decision. (b) In ruling on the motion, the pre- The Judicial Officer shall render a siding officer shall consider the con- final Agency decision. The decision venience and necessity of the parties shall be served upon the parties and and the relevancy of the evidence to be the postal official having custody of offered. any mail detained pursuant to the determination or ruling. [59 FR 31538, June 20, 1994, as amended at 63 FR 66050, Dec. 1, 1998] § 953.15 Expedition. § 953.10 Presiding officers. For the purpose of further expedition, either party may move to have The presiding officer at any hearing the hearing held at an earlier date than shall be an Administrative Law Judge that specified in the notice. Either qualified in accordance with law (5 party may also move to have the ini- U.S.C. 3105) and assigned by the Judi- tial decision (if an Administrative Law cial Officer (39 U.S.C. 204), or the Judi- Judge or the Judicial Officer is pre- cial Officer, may at his discretion, siding) or the final Agency decision (if elect to preside at the reception of evi- the Judicial Officer is presiding) ren- dence. The Judicial Officer shall assign dered orally at the conclusion of the cases to Administrative Law Judges hearing. The presiding officer may upon rotation if practicable. grant or deny any such motion. The

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parties may, with the concurrence of 954.16 Procedure. the Judicial Officer, agree to waive any 954.17 Transcript. of the procedures established in these 954.18 Proposed findings and conclusions. rules. 954.19 Initial decision. 954.20 Appeals. § 953.16 Disposition. 954.21 Motion for reconsideration. 954.22 Continuances. Mail matter found to be nonmailable 954.23 Computation of time. shall be held at the post office where 954.24 Official record. detained for a period of 15 days from 954.25 Public information. the date of the Postal Service decision, 954.26 Ex parte communications. unless that period is extended by the AUTHORITY: 39 U.S.C. 204, 401. Judicial Officer. During this holding SOURCE: 36 FR 11567, June 16, 1971, unless period, the appellant may apply for the otherwise noted. withdrawal of the matter. If any such application is made, the General Coun- § 954.1 Authority for rules. sel shall be given notice and the oppor- These rules of practice are issued by tunity to oppose the application. Upon the Judicial Officer of the U.S. Postal the expiration of the holding period Service pursuant to authority dele- with no application having been made, gated by the Postmaster General. the Judicial Officer shall order that the matter be disposed of in accordance § 954.2 Scope of rules. with 39 U.S.C. 3001(b). If a timely appli- The rules of practice shall apply to cation is made, the Judicial Officer all Postal Service proceedings con- shall consider the application and any cerning applications, denials, suspen- reasons advanced by the General Coun- sions and revocations of Periodicals sel for denying the application. The Ju- mailing privileges arising under former dicial Officer shall thereafter order ei- title 39 U.S.C. 4351, 4352, 4353, 4354, 4355, ther that the matter be returned to the 4356, and 4369 as continued by sec. 3 of applicant or that it be disposed of in the Postal Reorganization Act (Pub. L. accordance with 39 U.S.C. 3001(b). 91–375). § 953.17 Ex parte communications. [36 FR 11567, June 16, 1971, as amended at 62 The provisions of 5 U.S.C. 551(14), FR 66998, Dec. 23, 1997] 556(d), and 557(d) prohibiting ex parte § 954.3 Informal dispositions. communications are made applicable to proceedings under these rules of These rules do not preclude the infor- practice. mal dispositions of Periodicals mailing privilege matters before or after insti- PART 954—RULES OF PRACTICE IN tution of proceedings. PROCEEDINGS RELATIVE TO THE [36 FR 11567, June 16, 1971, as amended at 62 DENIAL, SUSPENSION, OR REV- FR 66998, Dec. 23, 1997] OCATION OF PERIODICALS MAIL § 954.4 Office business hours. PRIVILEGES The offices of the officials mentioned Sec. in these rules are located at 2101 Wil- 954.1 Authority for rules. son Boulevard, Suite 600, Arlington, VA 954.2 Scope of rules. 22201–3078 and are open Monday 954.3 Informal dispositions. through Friday from 8:15 a.m. to 4:45 954.4 Office business hours. p.m. 954.5 Application. 954.6 Revocation or suspension. [63 FR 66050, Dec. 1, 1998] 954.7 Failure to appeal proposed action. 954.8 Pleading. § 954.5 Application. 954.9 Default. A publisher may file an application 954.10 Intervention or other participation. for Periodicals mailing privileges. (See 954.11 Hearings. 954.12 Change of place of hearing. § E213 of the Domestic Mail Manual.) 954.13 Appearances. An authorized administrative official 954.14 Presiding officers. of the Postal Service (hereinafter 954.15 Judicial Officer. called ‘‘the authorized official’’) rules

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upon all applications. If he or she de- (b) Petition. A publisher may appeal nies the application he or she shall no- from a ruling of the authorized official tify the publisher specifying the rea- by filing a petition within 15 days of sons for his or her denial and attaching the receipt of the ruling unless the a copy of these rules. Before taking ac- time is extended by the authorized offi- tion on an application, the authorized cial. The petition shall state the rea- official may call upon the publisher for sons why the publisher (designated additional information or evidence to ‘‘Petitioner’’ in the proceeding) be- support or clarify the application. Fail- lieves the ruling of the authorized offi- ure of the publisher to furnish such in- cial is erroneous and shall provide the formation or evidence may be cause for address at which documents may be the authorized official to deny the ap- served on the Petitioner. The petition plication as incomplete or, on its face, shall also allege facts showing compli- not fulfilling the requirements for ance with each provision of law or reg- entry. ulation on which the publisher’s claim to Periodicals mail privileges is based. [36 FR 11567, June 16, 1971, as amended at 38 The publisher shall attach to his or her FR 17217, June 29, 1973; 42 FR 30504, June 15, 1977; 62 FR 66998, Dec. 23, 1997] petition a copy of the letter of the authorized official denying, suspending or § 954.6 Revocation or suspension. revoking Periodicals mail privileges. (c) Notice of hearing. Upon receipt of When the authorized official deter- the petition the Recorder shall set a mines that a publication is no longer date for the hearing and issue a notice entitled to Periodicals mailing privi- of hearing to the parties stating the leges, he or she shall issue a ruling of time and place of the hearing, the date suspension or revocation to the pub- for filing an answer, and the name of lisher at the last known address of the the presiding officer. office of publication stating the rea- (d) Answer. The authorized official sons and attaching a copy of these (designated the ‘‘Respondent’’ in the rules. proceeding) shall answer the petition [36 FR 11567, June 16, 1971, as amended at 38 within 15 days after filing and admit or FR 17217, June 29, 1973; 62 FR 66998, Dec. 23, deny each allegation of the petition. 1997] (e) Amendment. An amendment of a pleading may be offered by any party § 954.7 Failure to appeal proposed ac- at any time prior to the close of the tion. hearing. If the presiding officer deems A ruling of the authorized official it appropriate to permit the amend- shall become final upon failure of the ment of a pleading, he or she may im- publisher to file a petition in accord- pose such conditions, by way of con- ance with the requirements of § 954.8(b). tinuance of the hearing date or otherwise, as he or she considers necessary [36 FR 11567, June 16, 1971, as amended at 38 FR 17217, June 29, 1973] to assure a fair hearing. [36 FR 11567, June 16, 1971, as amended at 38 § 954.8 Pleading. FR 17217, June 29, 1973; 62 FR 66998, Dec. 23, (a) Place of filing. Parties shall file an 1997] original and three copies of all documents of record, unless otherwise or- § 954.9 Default. dered by the presiding officer with the If a publisher fails to appear at the Recorder of the Postal Service, who hearing, the presiding officer may: (a) shall cause copies to be delivered to Dismiss the petition; (b) order the peti- the other parties and to the presiding tioner to show cause within 30 days officer. Service is ordinarily made on from the date of the order why an order the private parties by certified mail of dismissal should not be entered, and and delivery is deemed complete when thereafter enter such order as the pre- a document or notice of its arrival is siding officer deems to be appropriate. left at the designated address. The Re- If the petition is dismissed by order of corder shall maintain a docket and the an Administrative Law Judge, the dis- files in all proceedings. missal may be appealed to the Judicial

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Officer within 15 days from the date of sity of the parties and the relevancy of the order. the evidence to be offered. [36 FR 11567, June 16, 1971, as amended at 62 § 954.10 Intervention or other partici- FR 66998, Dec. 23, 1997; 63 FR 66050, Dec. 1, pation. 1998] To intervene or otherwise participate in a proceeding, any person may file a § 954.13 Appearances. timely application in accordance with (a) The General Counsel of the Postal § 954.8(a). A timely application is one Service or a member of his or her staff which will not unduly delay the pro- designated by him or her shall rep- ceeding. The application shall state resent the authorized official. whom the potential intervenor rep- (b) A publisher or intervenor may ap- resents, his or her interest, the extent pear and be heard in person or by at- to which he or she desires to partici- torney. Attorneys may practice before pate, and the evidence he or she seeks the Postal Service in accordance with to introduce. The presiding officer applicable rules issued by the Judicial shall fix the time within which the par- Officer. See part 951 of this chapter. ties shall answer the application. The (c) An attorney representing a pub- presiding officer shall grant or deny lisher or intervenor shall file a written the application on such terms and con- authorization from the publisher or in- ditions as he or she deems appropriate. tervenor before he or she may partici- In so doing the presiding officer will pate in the proceeding. The publisher consider, among other things, whether or intervenor must promptly file a no- intervention or other participation is tice of change of attorneys. consistent with the timely and proper (d) When a publisher or intervenor is represented by an authorized attorney adjudication of the rights of the origi- all subsequent pleadings shall be served nal parties. upon the attorney. [31 FR 5198, Mar. 31, 1966. Redesignated at 31 [36 FR 11567, June 16, 1971, as amended at 62 FR 16270, Dec. 20, 1966; 62 FR 66998, Dec. 23, FR 66998, Dec. 23, 1997] 1997] § 954.14 Presiding officers. § 954.11 Hearings. (a) The Chief Administrative Law Hearings are held at 2101 Wilson Bou- Judge shall assign each case to an Ad- levard, Suite 600, Arlington, VA 22201– ministrative Law Judge qualified in ac- 3078, or other locations designated by cordance with law to preside over the the presiding officer. hearing. Such assignments shall be [63 FR 66050, Dec. 1, 1998] made, so far as practical, in rotation. (b) The presiding officer shall have § 954.12 Change of place of hearing. authority to: Not later than the date fixed for the (1) Administer oaths and affirma- filing of the answer, a party may file a tions; request that a hearing be held to re- (2) Examine witnesses; ceive evidence in his or her behalf at a (3) Rule upon matters of evidence and place other than that designated for procedure; hearing in the notice. He or she shall (4) Order any pleading amended upon support his request with a statement motion of a party at any time prior to setting forth: the close of the hearing; (a) The evidence to be offered in such (5) Maintain discipline and decorum place; and exclude from the hearing any person acting in an indecorous manner; (b) The names and addresses of the (6) Require the filing of briefs on any witnesses who will testify; matter upon which he or she is re- (c) The reasons why such evidence quired to rule; cannot be produced at Arlington, VA. (7) Order prehearing conferences for The presiding officer shall give consid- the settlement or simplification of eration to the convenience and neces- issues by consent of the parties;

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(8) Order the proceeding reopened at (2) If the application is granted, the any time prior to his or her decision order for the taking of the deposition for the receipt of additional evidence; will specify the time and place thereof, (9) Render an initial decision. the name of the witness, the person be- [36 FR 11567, June 16, 1971, as amended at 38 fore whom the deposition is to be taken FR 17217, June 29, 1973; 38 FR 20263, July 30, and any other necessary information. 1973; 62 FR 66998, Dec. 23, 1997] (3) Each witness testifying upon deposition shall be duly sworn by the dep- § 954.15 Judicial Officer. osition officer and the adverse party The Judicial Officer is authorized (a) shall have the right to cross-examine. to act as presiding officer at hearings The questions and answers together and (b) to render a final Postal Service with all objections, shall be reduced to Decision for the Postmaster General. writing and, unless waived by stipula- On appeal from an Initial Decision of tion of the parties, shall be read to and an Administrative Law Judge, the Ju- subscribed by the witness in the pres- dicial Officer will consider the entire ence of the deposition officer who shall record including the initial decision certify it in the usual form. The deposi- and the exceptions to that decision. Be- tion officer shall file the testimony fore any final agency decision has been taken by deposition as directed in the rendered, the Judicial Officer may order. All objections made at the time order the hearing reopened for the pre- of examination shall be noted by the siding officer to take additional evi- deposition officer and the evidence ob- dence. jected to shall be taken subject to the § 954.16 Procedure. objections. In lieu of participating in the oral examination, a party may (a) Evidence. The general rules of evi- transmit written interrogatories to the dence governing civil proceedings in deposition officer, who shall propound matters not involving trial by jury in them to the witness and record the an- the courts of the United States apply. swers verbatim. Objections to rel- The rules may be relaxed to the extent evancy or materiality of testimony, or that the presiding officer may deem to errors and irregularities occurring proper to insure an adequate and fair at the oral examination in the manner hearing. The presiding officer may ex- of taking the deposition, in the form of clude irrelevant or repetitious evi- the questions or answers, in the oath or dence. affirmation, or in the conduct of the (b) Subpoenas. The Postal Service is parties and errors of any kind which not authorized to issue subpoenas. (c) Fees. The Postal Service does not might be obviated, cured or removed if pay fees and expenses for witnesses of, promptly presented, are waived unless or depositions requested by, the pub- timely objection is made at the taking lisher or intervenor. of the deposition. (d) Depositions. Depositions may be (4) At the hearing any part or all of taken as follows: the deposition may be offered in evi- (1) Not later than 5 days after the fil- dence by any party who was present or ing of the authorized officials’s answer, represented at the taking of the deposi- any party may file application with the tion or who had notice thereof. If the presiding officer for the taking of testi- deposition is not offered and received mony by deposition. In support of such in evidence, it shall not be considered application the applicant shall submit as a part of the record in the pro- under oath or affirmation a statement ceeding. The admissibility of deposi- setting out the reasons why such testi- tions or parts thereof shall be governed mony should be taken by deposition, by the rules of evidence. the time and the place, and the name (5) The party requesting the deposi- and address of the witness whose depo- tion shall pay all fees required to be sition is desired, the subject matter of paid to witnesses and the deposition of- the testimony of each witness, its rel- ficer, and shall provide an original and evancy, and the name and address of one copy of the deposition for the offi- the person before whom the deposition cial record, and shall serve one copy is to be taken. upon the opposing party.

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(6) Within the United States or within the transcript. He or she may on his in a territory or insular possession sub- or her own initiative order corrections ject to the dominion of the United in the transcript after notice to the States, depositions may be taken be- parties subject to their objection. fore an officer authorized to administer oaths by the laws of the United States [36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997] or of the place where the examination is held; within a foreign country, depo- § 954.18 Proposed findings and conclu- sitions may be taken before a secretary sions. of an embassy or legation, consul gen- (a) A party to a proceeding may sub- eral, vice consul or consular agent of the United States, or any other person mit proposed findings of fact and con- designated in the order for the taking clusions of law to the presiding officer. of a deposition. The presiding officer shall determine (7) Depositions may also be taken whether they shall be oral or written. and submitted on written interrog- The presiding officer may require par- atories in substantially the same man- ties to a proceeding to submit proposed ner as depositions taken by oral exam- findings of fact and conclusions of law ination. When a deposition is taken with supporting reasons. When the pro- upon written interrogatories and cross- posed findings and conclusions are not interrogatories, none of the parties submitted orally they shall be filed shall be present or represented, and no within 15 days after delivery of the offi- person, other than the witness, a steno- cial transcript to the Recorder. The graphic reporter, and the deposition of- Recorder shall notify the parties of the ficer shall be present at the examina- filing date which shall be the same for tion of the witness, which fact shall be both parties. If not submitted by that certified by the officer, who shall pro- date, the findings and conclusions will pound the interrogatories and cross-in- not be considered or included in the terrogatories to the witness in their record. order and reduce the testimony to (b) Except when presented orally, writing in the witness’ own words. proposed findings of fact and conclusions of law shall be set forth in num- [36 FR 11567, June 16, 1971, as amended at 62 bered paragraphs and shall state with FR 66998, Dec. 23, 1997] particularity all evidentiary facts in § 954.17 Transcript. the record with appropriate citations to the transcript or exhibits relied (a) A contract reporter of the Postal upon to support the conclusions pro- Service under the supervision of the posed. Each proposed conclusion shall presiding officer shall report hearings. be separately stated. The reporter shall supply the parties with copies of the transcript at rates [36 FR 11567, June 16, 1971, as amended at 62 not to exceed those fixed by contract FR 66998, Dec. 23, 1997] between the Postal Service and the reporter. § 954.19 Initial decision. (b) Changes in the official transcript (a) Upon request of either party the may be made only when they involve presiding officer may render an oral substantial errors. A party may file a initial decision at the close of the hear- motion for correction of the official ing when the nature of the case and the transcript within 10 days after his or public interest warrant. If a party de- her receipt of the transcript or any sires an oral initial decision he or she part thereof. Other parties shall, with- shall notify the presiding officer and in such time as may be specified by the the opposing party at least 5 days prior presiding officer, notify the presiding to the date set for hearing. Parties officer in writing if they object to the may then submit proposed findings and requested corrections. Failure of a conclusions orally or in writing at the party to interpose timely objection to conclusion of the hearing. a proposed correction may be consid- (b) If an oral initial decision is not ered by the presiding officer to be con- rendered, the presiding officer shall currence. The presiding officer shall render a written initial decision with then specify the corrections to be made all due speed after the parties have

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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 and law presented on the record and event the period runs until the close of the reasons for those findings. business on the next working day. [36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997] § 954.24 Official record. The pleadings, orders, exhibits, tran- § 954.20 Appeals. script of testimony, briefs, decisions (a) A party may appeal to the Judi- and other documents filed in the pro- cial Officer from an initial decision by ceeding constitute the official record of filing exceptions in a brief on appeal the proceeding. within 15 days from the receipt of a written or oral initial decision. § 954.25 Public information. (b) The time for the filing of the The Librarian of the Postal Service reply brief is 10 days after receipt of maintains for public inspection in the the appeal brief. No additional briefs Library copies of all initial and final shall be received unless requested by Agency decisions. The Recorder of the the Judicial Officer. Postal Service maintains a complete (c) Appeal briefs shall contain the official record of every proceeding. A following matter in the order indi- person may examine a record upon au- cated: thorization by the Judicial Officer. (1) A subject index of the matters [36 FR 11567, June 16, 1971, as amended at 62 presented with page references; FR 66998, Dec. 23, 1997] (2) A table of cases alphabetically arranged; § 954.26 Ex parte communications. (3) A list of statutes and texts cited The provisions of 5 U.S.C. 551(14), with page references; 556(d) and 557(d) prohibiting ex parte (4) A concise abstract or statement of communications are made applicable the case; to proceedings under these rules of (5) Numbered exceptions to the find- practice. ings and conclusions of the presiding officer and the reasons for the excep- [42 FR 5358, Jan. 28, 1977] tions. (d) Reply briefs shall contain para- PART 955—RULES OF PRACTICE BE- graphs (c) (1), (2), and (3) of this section FORE THE BOARD OF CONTRACT and the reasons for opposing the excep- APPEALS tions. [36 FR 11567, June 16, 1971, as amended at 38 Sec. FR 17217, June 29, 1973] 955.1 Jurisdiction, procedure, representation of parties.

§ 954.21 Motion for reconsideration. PRELIMINARY PROCEDURES Within 10 days from the date thereof, 955.2 Appeals, how taken. or such longer period as may be fixed 955.3 Notice of appeal, contents of. by the Judicial Officer, either party 955.4 Forwarding of appeals. may file a motion for reconsideration 955.5 Preparation, contents, organization, of a final Agency decision. forwarding, and status of appeal file. 955.6 Dismissal for lack of jurisdiction. § 954.22 Continuances. 955.7 Pleadings. 955.8 Amendments of pleadings or record. For good cause shown, continuances 955.9 Hearing election. or extensions may be granted by the 955.10 Prehearing briefs. presiding officer. Similar action may 955.11 Prehearing or presubmission con- be taken by the Judicial Officer when ference. the proceeding is on appeal. 955.12 Submission without a hearing.

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955.13 Optional small claims (expedited) and has authority to determine appeals accelerated procedures. falling within the scope of its jurisdic- 955.14 Settling the record. tion as fully and finally as might the 955.15 Discovery—depositions. 955.16 Interrogatories to parties, admission Postmaster General himself. of facts, and production and inspection of (b) Organization and location of the documents. Board. (1) The Board is located in Ar- 955.17 Service of papers. lington, VA and its mailing address is 2101 Wilson Boulevard, Suite 600, Ar- Hearings lington, VA 22201–3078. 955.18 Where and when held. (2) The Board consists of the Judicial 955.19 Notice of hearings. 955.20 Unexcused absence of a party. Officer as Chairman, the Associate Ju- 955.21 Nature of hearings. dicial Officer as Vice Chairman, and 955.22 Examination of witnesses. the Administrative Judges of the Post- 955.23 Copies of papers. al Service. All members of the Board 955.24 Posthearing briefs. shall be attorneys at law duly licensed 955.25 Transcript of proceedings. by any state, commonwealth, terri- 955.26 Withdrawal of exhibits. tory, or the District of Columbia. In Representation general, the appeals are assigned to a panel of at least three members of the 955.27 The appellant. 955.28 The respondent. Board. The decision of a majority of the panel constitutes the decision of Decisions the Board. 955.29 Decisions. (c) Decisions on questions of law. When an appeal is taken pursuant to a Dis- Motion for Reconsideration putes Clause in a contract which limits 955.30 Motion for reconsideration. appeals to disputes concerning questions of fact, the Board may, in its dis- Dismissals cretion, hear, consider, and decide all 955.31 Dismissal without prejudice. questions of law necessary for the com- 955.32 Dismissal for failure to prosecute. plete adjudication of the issue. In the Ex Parte Communications consideration of an appeal, should it appear that a claim is involved which 955.33 Ex parte communications. is not cognizable under the terms of Sanctions the contract, the Board may make 955.34 Sanctions. findings of fact with respect to such a claim without expressing an opinion on Effective Date and Applicability the question of liability. 955.35 Subpoenas. (d) Board of contract appeals 955.36 Effective dates and applicability. procedure—(1) Rules. Appeals referred to AUTHORITY: 39 U.S.C. 204, 401; 41 U.S.C. 607, the Board are handled in accordance 608. with the rules of the Board.

SOURCE: 41 FR 7408, Feb. 18, 1976, unless (2) Administration and interpretation of otherwise noted. rules. Emphasis is placed upon the sound administration of these rules in § 955.1 Jurisdiction, procedure, rep- specific cases, because it is impracti- resentation of parties. cable to articulate a rule to fit every (a) Jurisdiction for considering appeals. possible circumstance which may be The U.S. Postal Service Board of Con- encountered. These rules will be inter- tract Appeals (Board) shall consider preted so as to secure a just and inex- and determine appeals from decisions pensive determination of appeals with- of contracting officers arising under out unnecessary delay. contracts which contain provisions re- (3) Preliminary procedures. Prelimi- quiring the determination of appeals nary procedures are available to en- by the Postmaster General or his duly courage full disclosure of relevant and authorized representative or board. In material facts, and to discourage un- addition the Board shall have jurisdic- warranted surprise. tion over other matters assigned to it (4) Time, computation, and extensions. by the Postmaster General. The Board (i) All time limitations specified for

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various procedural actions are com- taken. The notice of appeal should be puted as maximums, and are not to be signed personally by the appellant (the fully exhausted if the action described contractor making the appeal), or by can be accomplished in a lesser period. an officer of the appellant corporation These time limitations are similarly or member of the appellant firm, or by eligible for extension in appropriate the contractor’s duly authorized rep- circumstances, on good cause shown. resentative or attorney. The complaint (ii) Except as otherwise provided by referred to in § 955.7 may be filed with law, in computing any period of time the notice of appeal, or the appellant prescribed by these rules or by any may designate the notice of appeal as a order of the Board, the day of the event complaint, if it otherwise fulfills the from which the designated period of requirements of a complaint. time begins to run shall not be included, but the last day of the period § 955.4 Forwarding of appeals. shall be included unless it is a Satur- When a notice of appeal in any form day, Sunday, or a legal holiday in has been received by the contracting which event the period shall run to the officer, he shall endorse thereon the end of the next business day. date of mailing (or date of receipt, if (iii) Requests for extensions of time otherwise conveyed) and within 10 days from either party shall be made in shall forward said notice of appeal to writing stating good cause therefor. the Board. Following receipt by the (5) Place of filings. Unless the Board Board of the original notice of an ap- otherwise directs, all notices of appeal, peal (whether through the contracting pleadings and other communications officer or otherwise), the contractor shall be filed with the Recorder of the and contracting officer will be prompt- Board at its office at 2101 Wilson Boule- ly advised of its receipt and the con- vard, Suite 600, Arlington, VA 22201– tractor will be furnished a copy of 3078. these rules. (e) Representation of parties. Whenever reference is made to contractor, appel- § 955.5 Preparation, contents, organi- lant, contracting officer, respondent zation, forwarding, and status of and parties, this shall include respec- appeal file. tive counsel for the parties, as soon as (a) Duties of contracting officer. Within appropriate notices of appearance have 30 days of receipt of an appeal, or ad- been filed with the Board. vice that an appeal has been filed, the contracting officer shall assemble and [41 FR 7408, Feb. 18, 1976, as amended at 43 FR 60275, Dec. 27, 1978; 60 FR 57938, Nov. 24, transmit to the Board through Postal 1995; 63 FR 66050, Dec. 1, 1998] Service counsel an appeal file consisting of all documents pertinent to PRELIMINARY PROCEDURES the appeal, including: (1) The decision and findings of fact § 955.2 Appeals, how taken. from which appeal is taken; Notice of an appeal must be in writ- (2) The contract including specifica- ing, and the original, together with tions and pertinent amendments, plans two copies, may be filed with the con- and drawings; tracting officer from whose decision (3) All correspondence between the the appeal is taken. The notice of ap- parties pertinent to the appeal, includ- peal must be mailed or otherwise filed ing the letter or letters of claim in re- within the time specified therefor in sponse to which decision was issued; the contract or allowed by applicable (4) Transcripts of any testimony provision of directive or law. taken during the course of proceedings, and affidavits or statements of any § 955.3 Notice of appeal, contents of. witnesses on the matter in dispute A notice of appeal should indicate made prior to the filing of the notice of that an appeal is thereby intended, and appeal with the Board; and should identify the contract (by num- (5) Any additional information con- ber), the department and agency or bu- sidered pertinent. reau cognizant of the dispute, and the Within the same time above specified decision from which the appeal is Postal Service counsel shall furnish

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the appellant a copy of each document afforded on application of either party, he transmits to the Board, except those unless the Board determines that its stated in paragraph (a)(2) of this sec- decision on the motion will be deferred tion, as to which a list furnished appel- pending hearing on both the merits and lant indicating specific contractual the motion. The Board shall have the documents transmitted will suffice, right at any time and on its own mo- and those stated in paragraph (d) of tion to raise the issue of its jurisdic- this section. tion to proceed with a particular case, (b) Duties of the appellant. Within 30 and shall do so by an appropriate order, days after receipt of a copy of the ap- affording the parties an opportunity to peal file assembled by the contracting be heard thereon. officer, the appellant shall supplement the same by transmitting to the Board § 955.7 Pleadings. any documents not contained therein (a) Appellant. Within 30 days after re- which he considers pertinent to the ap- ceipt of notice of docketing of the appeal, furnishing two copies of such doc- peal, the appellant shall file with the uments to the Government trial attor- Board an original and one copy of a ney. complaint setting forth simple, concise (c) Organization of appeal file. Docu- and direct statements of each of his ments in the appeal file may be origi- claims, alleging the basis, with appro- nals or legible facsimile or authenti- priate reference to contract provisions, cated copies thereof, and shall be ar- for each claim, and the dollar amount ranged in chronological order where claimed. This pleading shall fulfill the practicable, numbered sequentially, generally recognized requirements of a tabbed, and indexed to identify the complaint although no particular form contents of the file. or formality is required. Upon receipt (d) Lengthy documents. The Board thereof, the Board shall serve a copy may waive the requirement of fur- upon the respondent. Should the com- nishing to the other party copies of plaint not be received within 30 days, bulky, lengthy, or out-of-size docu- appellant’s claim and appeal may, if in ments in the appeal file when a party the opinion of the Board the issues be- has shown that doing so would impose fore the Board are sufficiently defined, an undue burden. At the time a party be deemed to set forth his complaint files with the Board a document as to and the respondent shall be so notified. which such a waiver has been granted, (b) Respondent. Within 30 days from he shall notify the other party that the receipt of said complaint, or the afore- same or a copy is available for inspec- said notice from the Board, respondent tion at the offices of the Board or of shall prepare and file with the Board the party filing same. an original and one copy of an answer (e) Status of documents in appeal file. thereto, setting forth simple, concise, Documents contained in the appeal file and direct statements of respondent’s are considered, without further action defenses to each claim asserted by ap- by the parties, as part of the record pellant. This pleading shall fulfill the upon which the Board will render its generally recognized requirements of decision, unless a party objects to the an answer, and shall set forth any af- consideration of a particular document firmative defenses or counter-claims as in advance of hearing or of settling the appropriate. Upon receipt thereof, the record in the event there is no hearing Board shall serve a copy upon appel- on the appeal. If objection to a docu- lant. Should the answer not be received ment is made, the Board will rule upon within 30 days, the Board may, in its its admissibility into the record as evi- discretion, enter a general denial on dence in accordance with §§ 955.14 and behalf of the Government, and the ap- 955.21. pellant shall be so notified.

§ 955.6 Dismissal for lack of jurisdic- § 955.8 Amendments of pleadings or tion. record. Any motion addressed to the jurisdic- (a) The Board upon its own initiative tion of the Board shall be promptly or upon application by a party may, in filed. Hearing on the motion shall be its discretion, order a party to make a

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more definite statement of the com- party may, in its discretion and upon plaint or answer, or to reply to an an- appropriate and sufficient notice to the swer. other party, furnish a prehearing brief (b) The Board may, in its discretion, to the Board. In any case where a pre- and within the proper scope of the ap- hearing brief is submitted, it shall be peal, permit either party to amend his furnished so as to be received by the pleading upon conditions just to both Board at least 15 days prior to the date parties. When issues within the proper set for hearing, and a copy shall simul- scope of the appeal, but not raised by taneously be furnished to the other the pleadings or the documentation de- party as previously arranged. scribed in § 955.5, are tried by express or implied consent of the parties, or by § 955.11 Prehearing or presubmission permission of the Board, they shall be conference. treated in all respects as if they had Whether the case is to be submitted been raised therein. In such instances, pursuant to § 955.12, or heard pursuant motions to amend the pleadings to con- to §§ 955.18 through 955.26, the Board form to the proof may be entered, but may upon its own initiative or upon are not required. If evidence is objected the application of either party, call to at a hearing on the ground that it is upon the parties to appear before a not within the issues raised by the Board Member for a conference to con- pleadings or the documentation re- sider: quired pursuant to § 955.5 (which shall (a) The simplification or clarification be deemed part of the pleadings for this of the issues; purpose), it may be admitted within (b) The possibility of obtaining stipu- the proper scope of the appeal, pro- lations, admissions, agreements on vided, however, that the objecting party may be granted a continuance if documents, understandings on matters necessary to enable him to meet such already of record, or similar agree- evidence. ments which will avoid unnecessary proof; § 955.9 Hearing election. (c) The limitation of the number of Upon receipt of respondent’s answer expert witnesses, or avoidance of simi- or the notice referred to in the last lar cumulative evidence, if the case is sentence of § 955.7(b), appellant shall to be heard; advise whether he desires a hearing as (d) The possibility of agreement dis- prescribed in §§ 955.18 through 955.26, or posing of all or any of the issues in dis- whether, in the alternative, he elects pute; and to submit his case on the record with- (e) Such other matters as may aid in out a hearing, as prescribed in § 955.12. the disposition of the appeal. In appropriate cases, the appellant The results of the conference shall be shall also elect whether he desires the reduced to writing by the Board Mem- optional small claims (expedited) pro- ber and this writing shall thereafter cedure or accelerated procedure pre- constitute part of the record. scribed in § 955.13. [41 FR 7408, Feb. 18, 1976, as amended at 60 § 955.12 Submission without a hearing. FR 57938, Nov. 24, 1995] Either party may elect to waive a hearing and to submit his case upon § 955.10 Prehearing briefs. the record before the Board, as settled Based on an examination of the docu- pursuant to § 955.14. Submission of the mentation described in § 955.5, the case without hearing does not relieve pleadings, and a determination of the parties from the necessity of prov- whether the arguments and authorities ing the facts supporting their allega- addressed to the issues are adequately tions or defenses. Affidavits, deposi- set forth therein, the Board may, in its tions, admissions, answers to interrog- discretion, require the parties to sub- atories, and stipulations may be em- mit prehearing briefs in any case in ployed to supplement other documen- which a hearing has been elected pur- tary evidence in the Board record. The suant to § 955.9. In the absence of a Board may permit such submission to Board requirement therefor, either be supplemented by oral argument

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(transcribed if requested), and by briefs (c) The SMALL CLAIMS (EXPE- arranged in accordance with § 955.24. DITED) Procedure. (1) This procedure shall apply only to § 955.13 Optional small claims (expe- appeals where the amount in dispute is dited) and accelerated procedures. $50,000 or less as to which the appellant (a) These procedures are available has elected the small claims (expe- solely at the election of the appellant. dited) procedure. (b) Elections to Utilize SMALL (2) In cases proceeding under the CLAIMS (EXPEDITED) and ACCELER- SMALL CLAIMS (EXPEDITED) proce- ATED Procedure. dure, the following time periods shall (1) In appeals where the amount in apply (i) within ten days from the re- dispute is $50,000 or less, the appellant spondent’s first receipt from either the may elect to have the appeal processed appellant or the Board of a copy of the under a small claims (expedited) proce- appellant’s notice of election of the dure requiring decision of the appeal, SMALL CLAIMS (EXPEDITED) proce- whenever possible, within 120 days dure, the respondent shall send the after the Board receives written notice Board a copy of the contract, the con- of the appellant’s election to utilize tracting officer’s final decision, and this procedure. The details of this pro- the appellant’s claim letter or letters, cedure appear in paragraph (c) of this if any; (ii) within 5 days after the section. An appellant may elect the Board has acknowledged receipt of the ACCELERATED procedure rather than notice of election, either party desiring the SMALL CLAIMS (EXPEDITED) an oral hearing shall so inform the procedure for any appeal eligible for Board. If either party requests an oral the SMALL CLAIMS (EXPEDITED) hearing, the Board shall promptly procedure. schedule such a hearing for a mutually (2) In appeals where the amount in convenient time consistent with ad- dispute is $100,000 or less, the appellant ministrative due process and the 120- may elect to have the appeal processed day limit for a decision, at a place de- under an accelerated procedure requir- termined under § 955.18. If a hearing is ing the decision of the appeal, when- not requested by either party within ever possible, within 180 days after the the time prescribed by this Rule, the Board receives written notice of the ap- appeal shall be deemed to have been pellant’s election to utilize this proce- submitted under § 955.12 without a dure. The details of this procedure ap- hearing. pear in paragraph (d) of this section. (3) In cases proceeding under the (3) The appellant’s election of either SMALL CLAIMS (EXPEDITED) proce- the SMALL CLAIMS (EXPEDITED) dure, pleadings, discovery, and other procedure or the ACCELERATED pro- prehearing activity will be allowed cedure may be made either in his no- only as consistent with the require- tice of appeal or by other written no- ment to conduct the hearing on the tice at any time thereafter. date scheduled or, if no hearing is (4) In deciding whether the SMALL scheduled, to close the record on a date CLAIMS (EXPEDITED) procedure or that will allow decision within the 120- the ACCELERATED procedure is appli- day limit. The Board, in its discretion, cable to a given appeal the Board shall may shorten time periods prescribed determine the amount in dispute by elsewhere in these Rules as necessary adding the amount claimed by the ap- to enable the Board to decide the appellant against the respondent to the peal within 120 days after the Board amount claimed by respondent against has received the appellant’s notice of the appellant. If either party making a election of the SMALL CLAIMS (EX- claim against the other party does not PEDITED) procedure. In so doing the otherwise state in writing the amount Board may reserve whatever time up to of its claim, the amount claimed by 30 days it considers necessary for prep- such party shall be the maximum aration of the decision. amount which such party represents in (4) Written decision by the Board in writing to the Board that it can rea- cases processed under the SMALL sonably expect to recover against the CLAIMS (EXPEDITED) procedure will other. be short and contain only summary

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findings of fact and conclusions. Deci- and in which there has been a hearing, sions will be rendered for the Board by the single Administrative Judge pre- a single Administrative Judge. If there siding at the hearing may, with the has been a hearing, the Administrative concurrence of both parties, at the con- Judge presiding at the hearing may, in clusion of the hearing and after enter- his discretion, at the conclusion of the taining such oral arguments as he hearing and after entertaining such deems appropriate, render on the oral arguments as he deems appro- record oral summary findings of fact, priate, render on the record oral sum- conclusions, and a decision of the ap- mary findings of fact, conclusions, and peal. Whenever such an oral decision is a decision of the Appeal. Whenever rendered, the Board will subsequently such an oral decision is rendered, the furnish the parties a typed copy of such Board will subsequently furnish the oral decision for record and payment parties a typed copy of such oral deci- purposes and to establish the date of sion for the record and payment pur- commencement of the period for filing poses and for the establishment of the a motion for reconsideration under commencement date of the period for § 955.30. filing a motion for reconsideration (e) Motions for Reconsideration in under § 955.30. Cases Arising Under § 955.13. Motions (5) Decisions of the Board under the for Reconsideration of cases decided SMALL CLAIMS (EXPEDITED) proce- under either the small claims (expe- dure will not be published, will have no value as precedents, and in the absence dited) procedure or the accelerated proof fraud, cannot be appealed. cedure need not be decided within the (d) The ACCELERATED Procedure time periods prescribed by this § 955.13 (1) This procedure shall apply only to for the initial decision of the appeal, appeals where the amount in dispute is but all such motions shall be processed $100,000 or less as to which the appel- and decided rapidly so as to fulfill the lant has made the requisite election. intent of this section. (2) In cases proceeding under the AC- (f) Except as herein modified, the CELERATED procedure, the parties rules of this part 955 otherwise apply in are encouraged, to the extent possible all aspects. consistent with adequate presentation [44 FR 13014, Mar. 9, 1979; 44 FR 23828, Apr. 23, of their factual and legal positions, to 1979. Redesignated and amended at 60 FR waive pleadings, discovery, and briefs. 57939, Nov. 24, 1995] The Board, in its discretion, may shorten time periods prescribed else- § 955.14 Settling the record. where in these Rules as necessary to (a) The record upon which the enable the Board to decide the appeal Board’s decision will be rendered con- within 180 days after the Board has re- sists of the appeal file described in ceived the appellant’s notice of elec- § 955.5, and to the extent the following tion of the ACCELERATED procedure, and may reserve 30 days for prepara- items have been filed, pleadings, pre- tion of the decision. hearing conference memoranda or or- (3) Written decisions by the Board in ders, prehearing briefs, depositions or cases processed under the ACCELER- interrogatories received in evidence, ATED procedure will normally be short admissions, stipulations, transcripts of and contain only summary findings of conferences and hearings, hearing ex- fact and conclusions. Decisions will be hibits, posthearing briefs, and docu- rendered for the Board by a single Ad- ments which the Board has specifically ministrative Judge with the concur- designated be made a part of the rence of the Chairman or Vice Chair- record. The record will at all reason- man or other designated Administra- able times be available for inspection tive Judge, or by a majority among by the parties at the office of the these two and an additional designated Board. member in case of disagreement. Alter- (b) Except as the Board may other- natively, in cases where the amount in wise order in its discretion, no proof dispute is $50,000 or less as to which the shall be received in evidence after com- accelerated procedure has been elected pletion of an oral hearing or, in cases

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submitted on the record, after notifica- hearing. In cases submitted on the tion by the Board that the case is record, the Board may, in its discre- ready for decision. tion, receive depositions as evidence in (c) The weight to be attached to any supplementation of that record. evidence of record will rest within the (e) Expenses. Each party shall bear its sound discretion of the Board. The own expenses associated with the tak- Board may in any case require either ing of any deposition. party, with appropriate notice to the other party, to submit additional evi- § 955.16 Interrogatories to parties, ad- dence on any matter relevant to the mission of facts, and production appeal. and inspection of documents. (a) Interrogatories to parties. After an § 955.15 Discovery—depositions. appeal has been filed with the Board, a (a) General policy and protective orders. party may serve on the other party The parties are encouraged to engage written interrogatories to be answered in voluntary discovery procedures. In separately in writing, signed under connection with any deposition or oath and returned within 30 days. Upon other discovery procedure, the Board timely objection by the party, the may make any order which justice re- Board will determine the extent to quires to protect a party or person which the interrogatories will be per- from annoyance, embarrassment, op- mitted. The scope and use of interrog- pression, or undue burden or expense, atories will be controlled by § 955.15. and those orders may include limita- (b) Admission of facts. After an appeal tions on the scope, method, time and has been filed with the Board, a party place for discovery, and provisions for may serve upon the other party a re- protecting the secrecy of confidential quest for the admission of specified information or documents. facts. Within 30 days after service, the (b) When depositions permitted. After party served shall answer each re- an appeal has been docketed and com- quested fact or file objections thereto. plaint filed, the parties may mutually The factual propositions set out in the agree to, or the Board may, upon appli- request shall be deemed admitted upon cation of either party and for good the failure of a party to respond to the cause shown, order the taking of testi- request for admission. mony of any person by deposition upon (c) Production and inspection of docu- oral examination or written interrog- ments. Upon motion of any party show- atories before any officer authorized to ing good cause therefor, and upon no- administer oaths at the place of exam- tice, the Board may order the other ination, for use as evidence or for pur- party to produce and permit the in- pose of discovery. The application for spection and copying or photographing order shall specify whether the purpose of any designated documents or ob- of the deposition is discovery or for use jects, not privileged, specifically iden- as evidence. tified, and their relevance and materi- (c) Orders on depositions. The time, ality to the cause or causes in issue ex- place, and manner of taking deposi- plained, which are reasonably cal- tions shall be as mutually agreed by culated to lead to the discovery of ad- the parties, or failing such agreement, missible evidence. If the parties cannot governed by order of the Board. themselves agree thereon, the Board (d) Use as evidence. No testimony shall specify just terms and conditions taken by depositions shall be consid- in making the inspection and taking ered as part of the evidence in the the copies and photographs. hearing of an appeal unless and until such testimony is offered and received § 955.17 Service of papers. in evidence at such hearing. It will not Papers shall be served personally or ordinarily be received in evidence if by mailing the same, addressed to the the deponent is present and can testify party upon whom service is to be made. personally at the hearing. In such in- Copies of complaints, answers and si- stances, however, the deposition may multaneous briefs shall be filed di- be used to contradict or impeach the rectly with the Board. The party filing testimony of the witness given at the any other paper with the Board shall

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send a copy thereof to the opposing entation of such evidence. In general, party, noting on the paper filed with admissibility will hinge on relevancy the Board, or on the letter transmit- and materiality. Letters or copies ting the same, that a copy has been so thereof, affidavits, or other evidence furnished. not ordinarily admissible under the generally accepted rules of evidence, HEARINGS may be admitted in the discretion of § 955.18 Where and when held. the presiding officer. The weight to be Hearings will ordinarily be held in attached to evidence presented in any the Arlington, VA, area, except that particular form will be within the dis- upon request seasonably made and cretion of the Board, taking into con- upon good cause shown, the Board may sideration all the circumstances of the set the hearing at another location. particular case. Stipulations of fact Hearings will be scheduled at the dis- agreed upon by the parties may be re- cretion of the Board with due consider- garded and used as evidence at the ation to the regular order of appeals hearing. The parties may stipulate the and other pertinent factors. On request testimony that would be given by a or motion by either party and upon witness if the witness were present. good cause shown, the Board may, in The Board may in any case require evi- its discretion, advance a hearing. dence in addition to that offered by the [41 FR 7408, Feb. 18, 1976, as amended at 60 parties. FR 57938, Nov. 24, 1995; 63 FR 66050, Dec. 1, 1998] § 955.22 Examination of witnesses. Witnesses before the Board will be § 955.19 Notice of hearings. examined orally under oath or affirma- The parties shall be given at least 15 tion, unless the facts are stipulated, or days notice of the time and place set the presiding officer shall otherwise for hearings. In scheduling hearings, order. If the testimony of a witness is the Board will give due regard to the not given under oath, the Board may desires of the parties and to the requirement for just and inexpensive de- warn the witness that his statements termination of appeals without unnec- may be subject to the provisions of essary delay. Notices of hearing shall Title 18, U.S.C., sections 287 and 1001, be promptly acknowledged by the par- and any other provisions of law impos- ties. ing penalties for knowingly making false representations in connection § 955.20 Unexcused absence of a party. with claims against the United States The unexcused absence of a party at or in any matter within the jurisdic- the time and place set for hearing will tion of any department or agency not be occasion for delay. In the event thereof. of such absence, the hearing will proceed and the case will be regarded as § 955.23 Copies of papers. submitted by the absent party as pro- When books, records, papers, or docu- vided in § 955.12. ments have been received in evidence, a true copy thereof or of such part § 955.21 Nature of hearings. thereof as may be material or relevant Hearings shall be as informal as may may be substituted therefor, during the be reasonable and appropriate under hearing or at the conclusion thereof. the circumstances. Appellant and respondent may offer at a hearing on the § 955.24 Posthearing briefs. merits such relevant evidence as they deem appropriate and as would be ad- Posthearing briefs may be submitted missible under the generally accepted upon such terms as may be agreed upon rules of evidence applied in the courts by the parties and the presiding officer of the United States in nonjury trials, at the conclusion of the hearing. Ordi- subject, however, to the sound discre- narily, they will be simultaneous tion of the presiding officer in super- briefs, exchanged within 30 days after vising the extent and manner of pres- receipt of transcript.

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§ 955.25 Transcript of proceedings. DECISIONS Testimony and argument at hearings § 955.29 Decisions. shall be reported verbatim, unless the Decisions of the Board will be made Board otherwise orders. Transcripts or in writing and authenticated copies copies of the proceedings shall be sup- thereof will be forwarded simulta- plied to the parties at such rates as neously to both parties. The rules of may be fixed by contract between the the Board and all final orders and deci- Reporter and the U.S. Postal Service. sions shall be open for public inspection at the offices of the Board in Ar- § 955.26 Withdrawal of exhibits. lington, VA. Decisions of the Board After a decision has become final the will be made solely upon the record, as Board may, upon request and after no- described in § 955.14. tice to the other party, in its discre- [41 FR 7408, Feb. 18, 1976, as amended at 63 tion, permit the withdrawal of original FR 66050, Dec. 1, 1998] exhibits, or any part thereof, by the party entitled thereto. The substi- MOTION FOR RECONSIDERATION tution of true copies of exhibits or any part thereof may be required by the § 955.30 Motion for reconsideration. Board in its discretion as a condition of A motion for reconsideration, if filed granting permission for such with- by either party, shall set forth specifi- drawal. cally the ground or grounds relied upon to sustain the motion, and shall be REPRESENTATION filed within 30 days from the date of the receipt of a copy of the decision of § 955.27 The appellant. the Board by the party filing the mo- An individual appellant may appear tion. before the Board in person, a corporation by an officer thereof, a partner- DISMISSALS ship or joint venture by a member § 955.31 Dismissal without prejudice. thereof, or any of these by an attorney at law duly licensed in any State, com- In certain cases, appeals docketed be- monwealth, territory, or in the Dis- fore the Board are required to be placed in a suspense status and the Board is trict of Columbia. An attorney rep- unable to proceed with disposition resenting an appellant shall file a writ- thereof for reasons not within the conten notice of appearance with the trol of the Board. In any such case Board. where the suspension has continued, or § 955.28 The respondent. it appears that it will continue, for an inordinate length of time, the Board Postal Service counsel, designated by may, in its discretion, dismiss such ap- the General Counsel, will represent the peals from its docket without prejudice interest of the Government before the to their restoration when the cause of Board. Counsel shall file a notice of ap- suspension has been removed. Unless pearance with the Board, and notice either party or the Board acts within thereof will be given appellant or his three years to reinstate any appeal dis- attorney in the form specified by the missed without prejudice, the dismissal Board from time to time. Whenever at shall be deemed with prejudice. any time it appears that appellant and Postal Service Counsel are in agree- § 955.32 Dismissal for failure to pros- ment as to disposition of the con- ecute. troversy, the Board may suspend fur- Whenever a record discloses the fail- ther processing of the appeal: Provided, ure of either party to file documents however, That if the Board is advised required by these rules, respond to no- thereafter by either party that the con- tices or correspondence from the troversy has not been disposed of by Board, comply with orders of the agreement, the case shall be restored Board, or otherwise indicates an inten- to the Board’s calendar without loss of tion not to continue the prosecution or position. defense of an appeal, the Board may

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issue an order requiring the offending hearing of books and papers designated party to show cause why the appeal in the subpoena. should not be either dismissed or (b) Voluntary cooperation. Each party granted, as appropriate. If the offend- is expected (1) To cooperate and make ing party shall fail to show such cause, available witnesses and evidence under the Board may take such action as it its control as requested by the other deems reasonable and proper under the party, without issuance of a subpoena, circumstances. and (2) To secure voluntary attendance of desired third-party books, papers, EX PARTE COMMUNICATIONS documents, or tangible things whenever possible. § 955.33 Ex parte communications. (c) Requests for subpoenas. (1) A re- No member of the Board or of the quest for a subpoena shall normally be Board’s staff shall entertain, nor shall filed at least: any person directly or indirectly in- (i) 15 days before a scheduled deposi- volved in an appeal submit to the tion where the attendance of a witness Board or the Board’s staff, off the at a deposition is sought; record, any evidence, explanation, (ii) 30 days before a scheduled hearing analysis, or advice, whether written or where the attendance of a witness at a oral, regarding any matter at issue in hearing is sought. an appeal. This provision does not apply to consultation among Board In its discretion the Board may honor members nor to ex parte communica- requests for subpoenas not made within tions concerning the Board’s adminis- these time limitations. trative functions or procedures. (2) A request for a subpoena shall state the reasonable scope and general SANCTIONS relevance to the case of the testimony and of any books and papers sought. § 955.34 Sanctions. (d) Requests to quash or modify. Upon If any party fails or refuses to obey written request by the person subpoe- an order issued by the Board, the Board naed or by a party, made within 10 days may make such order in regard to the after service but in any event not later failure as it considers necessary to the than the time specified in the subpoena just and expeditious conduct of the ap- for compliance, the Board may (1) peal. quash or modify the subpoena if it is unreasonable and oppressive or for EFFECTIVE DATE AND APPLICABILITY other good cause shown, or (2) require the person in whose behalf the sub- § 955.35 Subpoenas. poena was issued to advance the rea- (a) General. Upon written request of sonable cost of producing subpoenaed either party filed with the Recorder or books and papers. Where circumstances on his own initiative, the Administra- require, the Board may act upon such a tive Judge to whom a case is assigned request at any time after a copy has or who is otherwise designated by the been served upon the opposing party. Chairman may issue a subpoena requir- (e) Form; issuance. (1) Every subpoena ing: shall state the name of the Board and (1) Testimony at a deposition. The de- the title of the appeal and shall com- posing of a witness in the city or coun- mand each person to whom it is di- ty where he resides or is employed or rected to attend and give testimony, transacts his business in person, or at and if appropriate, to produce specified another location convenient for him books and papers at a time and place that is specifically determined by the therein specified. In issuing a subpoena Board; to a requesting party, the Administra- (2) Testimony at a hearing. The attend- tive Judge shall sign the subpoena and ance of a witness for the purpose of may in his discretion, enter the name taking testimony at a hearing; and of the witness and otherwise leave it (3) Production of books and papers. In blank. The party to whom the sub- addition to (1) and (2), the production poena is issued shall complete the sub- by the witness at the deposition or poena before service.

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(2) Where the witness is located in a rules shall not apply to appeals dock- foreign country, a letter rogatory or eted prior to their effective dates. subpoena may be issued and served [60 FR 57939, Nov. 24, 1995] under the circumstances and in the manner provided in 28 U.S.C. 1781–1784. (f) Service. (1) The party requesting PART 956—RULES OF PRACTICE IN issuance of a subpoena shall arrange PROCEEDINGS RELATIVE TO DIS- for service. CIPLINARY ACTION FOR VIOLA- (2) A subpoena requiring the attend- TION OF RESTRICTIONS ON POST- ance of a witness at a deposition or EMPLOYMENT ACTIVITY hearing may be served at any place. A subpoena may be served by a United Sec. States marshal or deputy marshal, or 956.1 Authority for rules. by any other person who is not a party 956.2 Scope of rules. and not less than 18 years of age. Serv- 956.3 Definitions. ice of a subpoena upon a person named 956.4 Initiation of proceedings. therein shall be made by personally de- 956.5 Answer. livering a copy to that person and ten- 956.6 Hearing election. 956.7 Notice of hearing. dering the fees for one day’s attend- 956.8 Reply. ance and the mileage provided by 28 956.9 Service and filing of documents for the U.S.C. 1821 or other applicable law. record. (3) The party at whose instance a 956.10 Respondent’s failure to appear at the subpoena is issued shall be responsible hearing. for the payment of fees and mileage of 956.11 Amendment of pleadings. the witness and of the officer who 956.12 Continuances and extensions. 956.13 Hearings. serves the subpoena. The failure to 956.14 Appearances. make payment of such charges on de- 956.15 Presiding officer. mand may be deemed by the Board as 956.16 Burden of proof and evidence. a sufficient ground for striking the tes- 956.17 Discovery—depositions. timony of the witness and the evidence 956.18 Interrogatories to parties, admission the witness has produced. of facts, and production of documents. (g) Contumacy or refusal to obey a sub- 956.19 Transcript. poena. In case of contumacy or refusal 956.20 Proposed findings and conclusions. 956.21 Decisions. to obey a subpoena by a person who re- 956.22 Exceptions to initial decision or ten- sides, if found, or transacts business tative decision. within the jurisdiction of a U.S. Dis- 956.23 Judicial Officer. trict Court, the Board will apply to the 956.24 Motion for reconsideration. Court through the Attorney General of 956.25 Modification or revocation of orders. the United States for an order requir- 956.26 Computation of time. ing the person to appear before the 956.27 Official record. Board or a member thereof to give tes- 956.28 Ex parte communications. timony or produce evidence or both. AUTHORITY: 18 U.S.C. 207(j), 39 U.S.C. 204, Any failure of any such person to obey 401. the order of the Court may be punished SOURCE: 49 FR 40771, Oct. 17, 1984, unless by the Court as a contempt thereof. otherwise noted.

[44 FR 13015, Mar. 9, 1979. Redesignated and § 956.1 Authority for rules. amended at 60 FR 57939, Nov. 24, 1995] The rules in this part are issued by § 955.36 Effective Dates and Applica- the Judicial Officer of the Postal Serv- bility. ice pursuant to authority delegated by The provisions of §§ 955.9 and 955.13 the Postmaster General (39 U.S.C. 204, took effect on October 1, 1995. Pursuant 401). to the Contract Disputes Acts of 1978 (41 U.S.C. 601–613), §§ 955.13 and 955.35 § 956.2 Scope of rules. apply to appeals relating to contracts The rules in this part shall be appli- entered into on or after March 1, 1979. cable in all formal proceedings before All other provisions of this part 955 the Postal Service pertaining to pro- took effect February 18, 1976. Except as posed disciplinary action initiated otherwise directed by the Board, these under § 447.34(e) of this title.

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§ 956.3 Definitions. § 956.6 Hearing election. (a) The term Ethical Conduct Officer Either party may, within, 10 days fol- has the same meaning as in § 447.31 of lowing the filing of the respondent’s this title and includes his authorized answer, request a hearing. If a timely representative. request is not made, the case shall be (b) Respondent means any individual submitted on the record without a who has been served a written notice of hearing. Submission of the case with- proposed disciplinary action pursuant out a hearing does not relieve the par- to § 447.34 of this title. ties of the necessity of proving the (c) The Recorder means the Recorder facts supporting their allegations or of the U.S. Postal Service, 2101 Wilson defenses. Affidavits, depositions, ad- Boulevard, Suite 600, Arlington, VA missions, answers to interrogatories 22201–3078. and stipulations may be employed to supplement the pleadings which [49 FR 40771, Oct. 17, 1984, as amended at 63 FR 66051, Dec. 1, 1998] consitute the record. The presiding officer may permit such submission to be § 956.4 Initiation of proceedings. supplemented by oral argument (tran- (a) The Ethical Conduct Officer shall scribed if requested) and by proposed initiate a proceeding by serving upon findings of fact and conclusions of law. the proposed respondent a written no- § 956.7 Notice of hearing. tice of proposed disciplinary action in the manner hereinafter (§ 956.9(d)) pro- (a) When a request for a hearing is vided for the service of all other pa- filed, a notice of hearing, stating the pers. time and place thereof and advising the (b) The notice shall: respondent of the consequences of a (1) State that disciplinary action is failure to appear at the hearing, will be being proposed; issued (see § 956.10). In setting a hearing (2) Inform the respondent of the sub- date, due regard shall be given to the section of section 207 (18 U.S.C. 207) respondent’s need for: that he is alleged to have violated and (1) Adequate time to prepare a de- of the basis of the allegation; fense properly; and (3) Inform the respondent of the dis- (2) An expeditious resolution of alle- ciplinary action which is proposed; gations that may be damaging to his or (4) Advise the respondent that he her reputation. Subject to those con- may oppose the proposed disciplinary siderations, whenever practicable, the action by filing an answer within 20 hearing date shall be within 30 days of days following receipt of the notice; the date of the notice of hearing. (5) State that the disciplinary action (b) The notice of proposed discipli- will not become effective until after a nary action and the answer together final agency decision is issued; with the reply, if any, shall become the (6) Inform the respondent of the rules pleadings in any proceeding in which a in this part, a copy of which shall be hearing is held. enclosed with the notice. (c) If no answer is filed within 20 days § 956.8 Reply. following the receipt of the notice, the Not more than 15 days from the serv- proposed disciplinary action set forth ice of the answer, the Ethical Conduct in the notice shall become the final Officer may submit a reply. agency decision without further notice to the respondent. § 956.9 Service and filing of documents for the record. § 956.5 Answer. (a) Each party shall file with the Re- Within 20 days from receipt of the no- corder pleadings, motions, orders and tice of proposed disciplinary action, other documents for the record. The the respondent may file an answer set- Recorder shall cause copies to be ting forth simple, concise, and direct served promptly on other parties to the statements admitting, denying or ex- proceeding and on the presiding officer. plaining each of the allegations set (b) The parties shall submit four cop- forth in the notice. ies of all documents unless otherwise

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ordered by the presiding officer. One the notice of proposed disciplinary ac- copy shall be signed as the original. tion are tried by express or implied (c) Documents shall be dated and consent of the parties, they shall be shall state the docket number and title treated in all respects as if they had of the proceeding. Any pleading or been raised in the pleadings. Such other document required by these rules amendments, as may be necessary to or by order of the presiding officer to make the pleadings conform to the evi- be filed by a specified date shall be dence and to raise such issues, shall be filed with the Recorder on or before allowed at any time upon the motion of such date. The filing date shall be en- any party. tered thereon by the Recorder. (c) If a party objects to the introduc- (d) Service of all papers shall be effected by mailing the same, postage tion of evidence at the hearing on the prepaid registered or certified mail, re- ground that it is not within the issues turn receipt requested, or by causing framed by the pleadings, but fails to said notice to be personally served on satisfy the presiding officer that an the proposed respondent by an author- amendment of the pleadings would ized representative of the Postal Serv- prejudice him on the merits, the pre- ice. In the case of personal service, the siding officer may allow the pleadings person making service shall, if pos- to be amended and may grant a con- sible, secure from the proposed re- tinuance to enable the objecting party spondent or his agent, a written ac- to rebut the evidence presented. knowledgment of receipt of said notice, (d) The presiding officer may, upon showing the date and time of such re- reasonable notice and upon such terms ceipt. If the person upon whom service as are just, permit service of a supple- is made will not acknowledge receipt, mental pleading setting forth trans- the person effecting service shall exe- actions, occurrences, or events which cute a statement, showing the time, have transpired since the date of the place and manner of service, which pleading sought to be supplemented shall constitute evidence of service. and which are relevant to any of the The acknowledgment, statement, or re- issues involved. turn receipt, when service is effected by mail, shall be made a part of the § 956.12 Continuances and extensions. record by the Ethical Conduct Officer. The date of delivery, as shown by the Continuances and extensions will not acknowledgment or statement of per- be granted by the presiding officer ex- sonal service or the return receipt, cept for good cause shown. shall be the date of service. § 956.13 Hearings. § 956.10 Respondent’s failure to appear (a) Hearings are held at 2101 Wilson at the hearing. Boulevard, Suite 600, Arlington, VA If the respondent shall fail to appear 22201–3078, or other locations des- at the hearing, the presiding officer ignated by the presiding officer. shall receive the Ethical Conduct Offi- (b) A party may, not later than 7 cer’s evidence and render a decision days prior to the scheduled date of a without requirement of further notice hearing, file a request that such hear- to the respondent. ing be held at a place other than that § 956.11 Amendment of pleadings. designated in the notice of hearing. He shall support his request with a state- (a) By consent of the parties, a plead- ment outlining: ing may be amended at any time. Also, a party may move to amend a pleading (1) The evidence to be offered in such at any time prior to the close of the place; hearing, provided that the proposed (2) The names and addresses of the amendment is reasonably within the witnesses who will testify; scope of the proceeding. (3) The reasons why such evidence (b) When issues not raised by the cannot be produced at the place des- pleadings but reasonably within the ignated in the notice of hearing. scope of the proceedings initiated by

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The presiding officer shall give consid- (6) Require the filing of briefs or eration to the convenience and neces- memoranda of law on any matter upon sity of the parties and the relevance of which he is required to rule; the evidence to be offered. (7) Order prehearing conferences for [49 FR 40771, Oct. 17, 1984, as amended at 63 the purposes of the settlement or sim- FR 66051, Dec. 1, 1998] plification of issues by the parties; (8) Permit oral argument by any § 956.14 Appearances. party; (9) Order the proceeding reopened at (a) A respondent may appear and be any time prior to his decision for the heard in person or by attorney. receipt of additional evidence; (b) An attorney may practice before (10) Render an initial decision, if the the Postal Service in accordance with presiding officer is not the Judicial Of- applicable rules issued by the Judicial ficer, which becomes the final agency Officer (see part 951 of this chapter). decision unless a timely appeal is (c) When a respondent is represented taken; the Judicial Officer may issue a by an attorney, all pleadings and other tentative or a final decision; papers subsequent to the notice of pro- (11) Take such other and further ac- posed disciplinary action shall be tion as may be necessary properly to mailed to the attorney. preside over the proceeding and render (d) All counsel shall promptly file no- decision therein. tices of appearance. Changes of the respondent’s counsel shall be recorded by § 956.16 Burden of proof and evidence. notices from retiring and succeeding (a) Each party may introduce and ex- counsel and from the respondent. amine witnesses and submit physical (e) After an answer has been filed evidence. The Ethical Conduct Officer pursuant to the rules in this part, the has the burden of proof in any pro- Law Department shall represent the ceeding under this part and must es- Ethical Conduct Officer in further pro- tablish a violation by a preponderance ceedings relative to the hearing and of the evidence. shall in its notice of appearance iden- (b) Except as otherwise provided in tify the individual member of such de- these rules, the Federal Rules of Evi- partment who has been assigned to dence shall be applicable to the hear- handle the case on its behalf. ings conducted under this part. Such rules may be relaxed, however, to the § 956.15 Presiding officer. extent that the presiding officer deems (a) The presiding officer shall be an proper to insure a fair hearing. Administrative Law Judge qualified in (c) Testimony shall be under oath or accordance with law. The Chief Admin- affirmation, and witnesses shall be sub- istrative Law Judge shall assign cases ject to cross-examination. under this part upon rotation so far as (d) Agreed statements of fact may be practicable. The Judicial Officer may, received in evidence. for good cause found, preside at the re- (e) Official notice or knowledge may ception of evidence upon request of ei- be taken of the types of matters of ther party. which judicial notice or knowledge (b) The presiding officer shall have may be taken. authority to: (f) Each party may present oral argu- (1) Administer oaths and affirma- ment. tions; (2) Examine witnesses; § 956.17 Discovery—depositions. (3) Rule upon offers of proof, admissi- (a) The parties are encouraged to en- bility of evidence, and matters of pro- gage in voluntary discovery proce- cedure; dures. In connection with any deposi- (4) Order any pleading amended upon tion or other discovery procedure, the motion of a party at any time prior to presiding officer may make any order the close of the hearing; which justice requires to protect a (5) Maintain discipline and decorum party or person from annoyance, em- and exclude from the hearing any per- barrassment, oppression, or undue bur- son acting in an indecorous manner; den or expense; and those orders may

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include limitations on the scope, meth- facts. Within 30 days after service, the od, time and place for discovery, and party served shall answer each re- provisions for protecting the secrecy of quested fact or file objections thereto. confidential information or documents. The factual propositions set out in the (b) After an answer has been filed, request shall be deemed admitted upon the parties may mutually agree to, or the failure of a party to respond to the the presiding officer may, upon appli- request for admission. cation of either party and for good (c) Upon motion of any party show- cause shown, order the taking of the ing good cause therefore, and upon no- testimony of any person by deposition tice, the presiding officer may order upon oral examination or written in- the other party to produce and permit terrogatories before any officer author- the inspection and copying or ized to administer oaths at the place of photocopying of any designated docu- examination, for use as evidence or for ments or objects, not privileged, spe- purposes of discovery. The application cifically identified, and their relevance for order shall specify whether the pur- and materiality to the cause or causes pose of the deposition is discovery or in issue explained, which are reason- for use as evidence. ably calculated to lead to the discovery (c) The time, place, and manner of of admissible evidence. If the parties taking depositions shall be mutually cannot themselves agree thereon, the agreed by the parties or, failing such presiding officer shall specify just agreement, governed by order of the terms and conditions in making the in- presiding officer. spection and making the copies and (d) No testimony taken by deposi- photographs. tions shall be considered as part of the evidence in a hearing unless and until § 956.19 Transcript. such testimony is offered and received in evidence at such hearing. It will not Testimony and argument at hearings ordinarily be received in evidence if shall be reported verbatim, unless the the deponent is present and can testify presiding officer otherwise orders. personally at the hearing. In such in- Transcripts or copies of the pro- stances, however, the deposition may ceedings shall be supplied to the par- be used to contradict or impeach the ties at such rates as may be fixed by testimony of the witness given at the contract between the reporter and the hearing. In cases submitted on the Postal Service. record, the presiding officer may, in his § 956.20 Proposed findings and conclu- discretion, receive depositions as evi- sions. dence in supplementation of that record. (a) Each party to a proceeding, ex- (e) Each party shall bear its own except one who fails to appear at the penses associated with the taking of hearing may, unless the presiding offi- any deposition. cer orders otherwise, submit proposed findings of fact, conclusions of law and § 956.18 Interrogatories to parties, ad- supporting reasons, either in oral or mission of facts, and production of written form at the discretion of the documents. presiding officer. The presiding officer (a) After an answer has been filed, a may also require parties to any pro- party may serve on the other party ceeding to submit proposed findings of written interrogatories to be answered fact and conclusions of law with sup- separately in writing, signed under porting reasons. Unless ordered other- oath and returned within 30 days. Upon wise by the presiding officer, the date timely objection by the party, the pre- set for filing of proposed findings of siding officer will determine the extent fact and conclusions of law shall be to which the interrogatories will be within 15 days after the delivery of the permitted. The scope and use of inter- official transcript to the Recorder who rogatories will be controlled by § 956.17. shall notify both parties of the date of (b) After an answer has been filed, a its receipt. The filing date for proposed party may serve upon the other party a findings shall be the same for both par- request for the admission of specified ties. If not submitted by such date, or

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unless an extension of time for the fil- brief in support of exceptions to a ten- ing thereof is granted, they will not be tative decision by the Judicial Officer included in the record or given consid- is 10 days after the receipt thereof. No eration. additional briefs shall be received un- (b) Proposed findings of fact shall be less requested by the Judicial Officer. set forth in serially numbered para- (d) Briefs on appeal or in support of graphs and shall state with particu- exceptions and replies thereto shall be larity all evidentiary facts in the filed in quadruplicate with the Re- record with appropriate citations to corder and contain the following mat- the transcript or exhibits supporting ter in the order indicated: the proposed findings. Each proposed (1) A subject index of the matters conclusion shall be separately stated. presented, with page references; a table of cases alphabetically arranged; a list § 956.21 Decisions. of statutes and texts cited, with page (a) A written initial decision by an references. Administrative Law Judge shall be ren- (2) A concise abstract or statement of dered with all due speed. The initial de- the case. cision shall include findings of fact and (3) Numbered exceptions to specific conclusions of law, with the reasons findings of fact or conclusions of law of therefor, upon all the material issues the presiding officer. of fact or law presented on the record, (4) A concise argument clearly set- and an appropriate order. A tentative ting forth points of fact and of law re- decision shall become the final decision lied upon in support of, or in opposition of the Postal Service unless exceptions to, each exception taken, together with are filed in accordance with § 956.22. specific references to the pertinent (b) When the Judicial Officer presides part of the record and the legal or at the hearing, he shall issue a final or other authorities relied upon. a tentative decision. Such decision (e) Unless permission is granted by shall include findings of fact and con- the Judicial Officer, no brief on appeal clusions of law, with the reasons there- or in support of exceptions shall exceed for, upon all the material issues of fact 50 printed or 100 typewritten pages dou- or law presented on the record, and an ble spaced. appropriate order. A tentative decision (f) The Judicial Officer will extend shall become the final decision of the the time to file briefs only upon mo- Postal Service unless exceptions are tion for good cause found. The movant filed in accordance with § 956.22. shall be promptly notified of the Judi- cial Officer’s decision on the motion. § 956.22 Exceptions to initial decision or tentative decision. § 956.23 Judicial Officer. (a) A party in a proceeding presided The Judicial Office is authorized: over by an Administrative Law Judge, (a) To act as presiding officer at except a party who failed to file an an- hearings; swer, may appeal to the Judicial Offi- (b) To render tentative decisions; cer by filing exceptions in a brief on (c) To render final decisions of the appeal within 15 days from the receipt Postal Service; of the Administrative Law Judge’s (d) To refer the record in any pro- written initial decision. ceedings to the Postmaster General or (b) A party in a proceeding presided the Deputy Postmaster General who over by the Judicial Officer, except one will make the final decision of the who has failed to file an answer, may Postal Service; and file exceptions within 15 days from the (e) To revise or amend these rules of receipt of the Judicial Officer’s written practice. In determining appeals from tentative decision. initial decisions or exceptions to ten- (c) Upon receipt of the brief on ap- tative decisions, the entire official peal from an initial decision of an Ad- record will be considered before a final ministrative Law Judge, the Recorder decision of the Postal Service is ren- shall promptly transmit the record to dered. Before rendering a final decision the Judicial Officer. The date for filing of the Postal Service, the Judicial Offi- the reply to a brief on appeal or to a cer may order the hearing reopened for

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the presentation of additional evidence PART 957—RULES OF PRACTICE IN by the parties. PROCEEDINGS RELATIVE TO DE- § 956.24 Motion for reconsideration. BARMENT AND SUSPENSION FROM CONTRACTING Within 10 days from the date thereof, or such longer period as may be fixed by the Judicial Officer, either party Sec. may file a motion for reconsideration 957.1 Authority for rules. 957.2 Scope of rules. of the final agency decision. Each mo- 957.3 Definitions. tion for reconsideration shall be ac- 957.4 Initiation of debarment proceedings. companied by a brief clearly setting 957.5 The request for a hearing. forth the points of fact and of law re- 957.6 Order relative to hearing. lied upon in support of said motion. 957.7 Reply. The Judicial Officer, in his discretion, 957.8 Service and filing documents for the may hold a hearing on the issues raised record. by the motion. 957.9 Respondent’s failure to appear at the hearing. § 956.25 Modification or revocation of 957.10 Respondent already debarred by an- orders. other Government agency. A party against whom an order has 957.11 Amendment of pleadings. been issued may file an application set- 957.12 Continuances and extensions. ting forth reasons which he believes 957.13 Hearings. warrant the modification or revocation 957.14 Appearances. of the order. The Recorder shall trans- 957.15 Conduct of the hearing. mit a copy of the application to the 957.16 Evidence. Ethical Conduct Officer who shall file a 957.17 Witness fees. written reply. A copy of the reply shall 957.18 Depositions. be sent to the applicant by the Re- 957.19 Transcript. corder. The Judicial Officer, in his dis- 957.20 Proposed findings and conclusions. cretion, may hold a hearing on the 957.21 Decision. issues raised by the application. There- 957.22 Motion for reconsideration. after an order granting or denying such 957.23 Modification or revocation of orders. application will be issued by the Judi- 957.24 Computation of time. cial Officer. 957.25 Official record. 957.26 Public information. § 956.26 Computation of time. 957.27 Suspension. 957.28 Ex parte communications. A designated period of time under the rules of this part excludes the day the AUTHORITY: 39 U.S.C. 204, 401. period begins and includes the last day SOURCE: 36 FR 11574, June 16, 1971, unless of the period unless the last day is a otherwise noted. Saturday or Sunday or legal holiday, in which event the period runs until § 957.1 Authority for rules. the close of business on the next busi- The rules in this part are issued by ness day. the Judicial Officer of the Postal Serv- § 956.27 Official record. ice pursuant to authority delegated by the Postmaster General (39 U.S.C. secs. The transcript of testimony together 204, 401; chapter 3, section 7 of the Post- with all pleadings, orders, exhibits, al Service Purchasing Manual). briefs, and other documents filed in the proceeding shall constitute the official [36 FR 11574, June 16, 1971, as amended at 41 record of the proceeding. FR 19309, May 12, 1976; 63 FR 66051, Dec. 1, 1998] § 956.28 Ex parte communications. § 957.2 Scope of rules. The provisions of 5 U.S.C. 551(14), 556(d) and 557(d) prohibiting ex parte The rules in this part shall be appli- communications are made applicable cable in all formal proceedings before to proceedings under these rules of the Postal Service pertaining to hear- practice. ings initiated under chapter 3, section 7

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of the Postal Service Purchasing Man- (2) The reasons for the proposed de- ual. barment; [36 FR 11574, June 16, 1971, as amended at 41 (3) The period of debarment and the FR 19309, May 12, 1976; 63 FR 66051, Dec. 1, proposed effective date thereof; 1998; 67 FR 62179, Oct. 4, 2002] (4) That the debarment will not become effective until after a hearing if § 957.3 Definitions. such hearing is requested within 20 (a) the term Vice President means a days following the receipt of the no- Vice President with purchasing author- tice; and ity in the Postal Service or the Vice (5) That the request for a hearing is President’s representative for the pur- to be submitted in the manner pre- pose of carrying out the provisions of scribed by the rules in this part, a copy chapter 3, section 7 of the Postal Serv- of which shall be enclosed with the no- ice Purchasing Manual. tice. (b) The term General Counsel includes (c) If no hearing is requested within the General Counsel’s authorized rep- 20 days following the receipt of the no- resentative. tice, the action of the Vice President (c) The term Judicial Officer includes set forth in the notice shall become the the Acting Judicial Officer. final agency determination without (d) Debarment means, in general, an further notice to the Respondent. exclusion from Government contracting and subcontracting for a rea- (d) The party against which a final sonable, specified period of time com- agency determination has been entered mensurate with the seriousness of the pursuant to paragraph (c) of this sec- offense or failure, or the inadequacy of tion shall, however, at any time have performance. the privilege of reopening a case for (e) Suspension means a disqualifica- the limited purpose of contesting the tion from Government contracting and issue of service. Such party’s conten- subcontracting for a temporary period tions on that issue shall be addressed of time because a concern or individual to the Judicial Officer in the same is suspected upon adequate evidence of manner as a request for a hearing (see engaging in criminal, fraudulent, or se- § 957.5). The Judicial Officer may re- riously improper conduct. quire such additional showings or proof (f) Respondent means any individual, as the Judicial Officer may deem nec- firm or other entity which has been essary on the issue of service and shall served a written notice of proposed de- reopen any debarment proceeding pre- barment pursuant to chapter 3, section viously closed pursuant to paragraph 7 of the Postal Service Purchasing (c) of this section if the Judicial Officer Manual. shall find that service was incomplete (g) The Recorder means the Recorder or otherwise failed to adequately ad- of the United States Postal Service, vise of the pendency of the proposed de- 2101 Wilson Boulevard, Suite 600, Ar- barment. lington, VA 22201–3078. [36 FR 11574, June 16, 1971, as amended at 63 [36 FR 11574, June 16, 1971, as amended at 38 FR 66051, Dec. 1, 1998] FR 17217, June 29, 1973; 41 FR 19309, May 12, 1976; 63 FR 66051, Dec. 1, 1998] § 957.5 The request for a hearing. § 957.4 Initiation of debarment pro- A respondent may, within 20 days fol- ceedings. lowing the receipt of a written notice (a) A Vice President shall initiate a of proposed debarment, file a request debarment proceeding by serving upon for a hearing before the Judicial Offi- the proposed Respondent a written no- cer. The request shall be addressed to tice of proposed debarment in the man- the presiding officer through the Vice ner hereinafter (§ 957.8(d)) provided for President who initiated the debarment the service of all other papers. proceeding and shall be accompanied (b) The notice shall state: by a concise statement admitting, de- (1) That debarment is being consid- nying or explaining each of the allega- ered; tions set forth in the notice of proposed

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debarment and stating the relief de- said notice to be personally served on sired. the proposed Respondent by an authorized representative of the Vice Presi- [36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998] dent. In the case of personal service the person making service shall secure § 957.6 Order relative to hearing. from the proposed Respondent or his or her agent, a written acknowledgment (a) The Judicial Officer shall issue an of receipt of said notice, showing the order granting the Respondent’s re- date and time of such receipt. Said ac- quest for a hearing, establishing the knowledgment (or the return receipt time and place thereof and advising the where service is effectuated by mail) Respondent of the consequences of a shall be made a part of the record by failure to appear at the hearing (see the Vice President initiating the debar- § 957.9). Whenever practicable, the hear- ment proceeding. The date of delivery, ing date shall be within 30 days of the as shown by the acknowledgment of date of the Judicial Officer’s order rel- personal service or the return receipt, ative to hearing. shall be the date of service. (b) The notice of proposed debarment and the request for a hearing together [36 FR 11574, June 16, 1971, as amended at 63 with the reply, if any, shall become the FR 66051, Dec. 1, 1998] pleadings in any proceeding in which § 957.9 Respondent’s failure to appear the Judicial Officer orders a hearing to at the hearing. be held. If the Respondent shall fail to appear § 957.7 Reply. at the hearing, the Judicial Officer shall receive the Vice President’s evi- Not more than 15 days from the serv- dence and render a Postal Service Deci- ice of the request for a hearing, the sion without requirement of further General Counsel may submit a reply on notice to the Respondent. behalf of the Vice President who initiated the debarment proceeding. [36 FR 11574, June 16, 1971, as amended at 37 FR 23422, Nov. 3, 1972; 63 FR 66051, Dec. 1, [36 FR 11574, June 16, 1971, as amended at 63 1998] FR 66051, Dec. 1, 1998] § 957.10 Respondent already debarred § 957.8 Service and filing documents by another Government agency. for the record. (a) When a Vice President proposes to (a) Each party shall file with the Re- debar a firm or individual already corder pleadings, motions, orders and debarred by another Government agen- other documents for the record. The cy for a term concurrent with such de- Recorder shall cause copies to be barment, the debarment proceedings served promptly on other parties to the before the Postal Service may be based proceeding and on the Judicial Officer. entirely upon the record of facts ob- (b) The parties shall submit four cop- tained from such other agency or upon ies of all documents unless otherwise such facts and additional other facts. ordered by the Judicial Officer. One In such cases the facts obtained from copy shall be signed as the original. the other agency shall be considered as (c) Documents shall be dated and established, but the party to be shall state the docket number and title debarred shall have opportunity to of the proceeding. Any pleading or present information to the Judicial Of- other document required by order of ficer and to explain why the debarment the Judicial Officer to be filed by a by the Postal Service should not be im- specified date shall be served upon the posed. Recorder on or before such date. The (b) Where the Vice President initi- date of such service shall be the filing ating the debarment proceeding relies: date and shall be entered thereon by (1) Upon the provisions of paragraph the Recorder. (a) of this section, or (d) Service of all papers shall be ef- (2) Upon all or part of the record of fected by mailing the same, postage the proposed Respondent’s previous de- prepaid registered, or certified mail, barment by another Government agen- return receipt requested, or by causing cy, in initiating such proceeding, the

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notice of proposed debarment shall § 957.12 Continuances and extensions. contain a statement so stating in suffi- Continuances and extensions will not cient detail to apprise the Respondent of the extent of such reliance. be granted by the Judicial Officer ex- (c) The Vice President’s reliance cept for good cause shown. upon provisions of paragraph (a) of this section, stated in conformity with the § 957.13 Hearings. directions set forth in paragraph (b) of (a) Hearings are held at 2101 Wilson this section does not deprive the Re- Boulevard, Suite 600, Arlington, VA spondent of the right to request the Ju- 22201–3078, or other locations des- dicial Officer to grant a hearing pursu- ignated by the Judicial Officer. ant to these rules, nor the Judicial Of- (b) A party may, not later than 7 ficer the full discretion to grant or days prior to the scheduled date of a deny such request. hearing, file a request that such hear- [36 FR 11574, June 16, 1971, as amended at 63 ing be held at a place other than that FR 66051, Dec. 1, 1998] designated in the Judicial Officer’s order relative to hearing. The party § 957.11 Amendment of pleadings. shall support his or her request with a (a) By consent of the parties a plead- statement outlining: ing may be amended at any time. Also, (1) The evidence to be offered in such a party may move to amend a pleading place; at any time prior to the close of the (2) The names and addresses of the hearing: Provided, That the proposed witnesses who will testify; amendment is reasonably within the scope of the proceeding. (3) The reasons why such evidence (b) When issues not raised by the cannot be produced at Arlington, VA. pleadings but reasonably within the The Judicial Officer shall give consid- scope of the proceedings initiated by eration to the convenience and neces- the notice of proposed debarment are sity of the parties and the relevancy of tried by express or implied consent of the evidence to be offered. the parties, they shall be treated in all [36 FR 11574, June 16, 1971, as amended at 63 respects as if they had been raised in FR 66051, Dec. 1, 1998] the pleadings. Such amendments as may be necessary to make the plead- § 957.14 Appearances. ings conform to the evidence and to raise such issues shall be allowed at (a) A Respondent may appear and be any time upon the motion of any heard in person or by attorney. party. (b) An attorney may practice before (c) If a party objects to the introduc- the Postal Service in accordance with tion of evidence at the hearing on the applicable rules issued by the Judicial ground that it is not within the issues Officer (see part 951 of this chapter). framed by the pleadings, but fails to (c) When a Respondent is represented satisfy the Judicial Officer that an by an attorney, all pleadings and other amendment of the pleadings would papers subsequent to the notice of pro- prejudice him on the merits, the Judi- posed debarment shall be mailed to the cial Officer may allow the pleadings to attorney. be amended and may grant a continu- (d) All counsel shall promptly file no- ance to enable the objecting party to tices of appearance. Changes of Re- rebut the evidence presented. (d) The Judicial Officer may, upon spondent’s counsel shall be recorded by reasonable notice and upon such terms notices from retiring and succeeding as are just, permit service of a supple- counsel and from the Respondent. mental pleading setting forth trans- (e) After a request for a hearing has actions, occurrences, or events which been filed pursuant to the rules in this have transpired since the date of the part, the Law Department shall rep- pleading sought to be supplemented resent the Vice President in further and which are relevant to any of the proceedings relative to the hearing and issues involved.

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shall in its notice of appearance iden- which judicial notice or knowledge tify the individual member of such of- may be taken. fice who has been assigned to handle (e) The written statement of a com- the case on its behalf. petent witness may be received in evidence: Provided, That such statement is [36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998] relevant to the issues, that the witness shall testify under oath at the hearing § 957.15 Conduct of the hearing. that the statement is in all respects true, and, in the case of expert wit- The Judicial Officer shall have au- nesses, that the statement correctly thority to: states his or her opinion or knowledge (a) Administer oaths and affirma- concerning the matters in question. tions; (b) Examine witnesses; [36 FR 11574, June 16, 1971, as amended at 63 (c) Rule upon offers of proof, admissi- FR 66051, Dec. 1, 1998] bility of evidence, and matters of pro- § 957.17 Witness fees. cedure; (d) Order any pleading amended upon The Postal Service does not pay fees motion of a party at any time prior to and expenses for Respondent’s wit- the close of the hearing; nesses or for depositions requested by (e) Maintain discipline and decorum Respondent. and exclude from the hearing any person acting in an indecorous manner; § 957.18 Depositions. (f) Require the filing of briefs or (a) Not later than 7 days prior to the memoranda of law on any matter upon scheduled date of the hearing any which the Judicial Officer is required party may file application with the Re- to rule; corder for the taking of testimony by (g) Order prehearing conferences for deposition. In support of such applica- the purpose of the settlement or sim- tion the applicant shall submit under plification of issues by the parties; oath or affirmation a statement set- (h) Order the proceeding reopened at ting out the reasons why such testi- any time prior to his or her decision mony should be taken by deposition, for the receipt of additional evidence; the time and the place, and the name (i) Render a final agency decision; and address of the witness whose depo- (j) Take such other further action as sition is desired, the subject matter of may be necessary to properly preside the testimony of each witness, its rel- over the debarment proceeding and evancy, and the name and address of render decision therein. the person before whom the deposition is to be taken. [36 FR 11574, June 16, 1971, as amended at 63 (b) If the application be granted, the FR 66051, Dec. 1, 1998] order for the taking of the deposition will specify the time and place thereof, § 957.16 Evidence. the name of the witness, the person be- (a) Except as otherwise provided in fore whom the deposition is to be taken the rules in this part, the rules of evi- and any other necessary information. dence governing civil proceedings in (c) Each witness testifying upon dep- matters not involving trial by jury in osition shall be duly sworn, and the ad- the courts of the United States shall verse party shall have the right to govern. However, such rules may be re- cross-examine. The questions and an- laxed to the extent that the Judicial swers together with all objections, Officer deems proper to insure a fair shall be reduced to writing and, unless hearing. waived by stipulation of the parties, (b) Testimony shall be under oath or shall be read to and subscribed by the affirmation and witnesses shall be sub- witness in the presence of the deposi- ject to cross-examination. tion officer who shall certify it in the (c) Agreed statements of fact may be usual form. The deposition officer shall received in evidence. file the testimony taken by deposition (d) Official notice or knowledge may as directed in the order. The deposition be taken of the types of matters of officer shall put the witness on oath.

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All objections made at the time of ex- interrogatories, none of the parties amination shall be noted by the deposi- shall be present or represented, and no tion officer and the evidence objected person, other than the witness, a steno- to shall be taken subject to the objec- graphic reporter, and the officer shall tions. In lieu of participating in the be present at the examination of the oral examination, a party may trans- witness, which fact shall be certified by mit written interrogatories to the offi- the officer, who shall propound the in- cer, who shall propound them to the terrogatories and cross-interrogatories witness and record the answers ver- to the witness in their order and reduce batim. Objections to relevancy or ma- the testimony to writing in the wit- teriality of testimony, or to errors and ness’ own words. irregularities occurring at the oral ex- [36 FR 11574, June 16, 1971, as amended at 63 amination in the manner of taking the FR 66051, Dec. 1, 1998] deposition, in the form of the questions or answers, in the oath or affirmation, § 957.19 Transcript. or in the conduct of the parties and er- (a) Hearings shall be stenographi- rors of any kind which might be obvi- cally reported by a contract reporter of ated, cured or removed if promptly pre- the Postal Service under the super- sented, are waived unless timely objec- vision of the Judicial Officer. Argu- tion is made at the taking of the depo- ment upon any matter may be excluded sition. from the transcript by order of the Ju- (d) At the hearing any part or all of dicial Officer. A copy of the transcript the deposition may be offered in evi- shall be a part of the record and the dence by any party who was present or sole official transcript of the pro- represented at the taking of the deposi- ceeding. Copies of the transcript may tion or who had notice thereof. If the be obtained by the Respondent from deposition is not offered and received the reporter upon the payment of a in evidence, it shall not be considered reasonable price therefor. Copies of as a part of the record in the pro- parts of the official record other than ceeding. The admissibility of deposi- the transcript may be obtained from tions or parts thereof shall be governed the librarian of the Postal Service or by the rules of evidence. the Recorder. (e) The party requesting the deposi- (b) Changes in the official transcript tion shall pay all fees required to be may be made only when they involve paid to witnesses and the deposition of- errors affecting substance and then ficer, and shall provide an original and only in the manner herein provided. No one copy of the deposition for the offi- physical changes shall be made in or cial record, and shall serve one copy upon the official transcript, or copies upon the opposing party. thereof, which have been filed with the (f) Within the United States or with- record. Within 10 days after the receipt in a territory or insular possession, by any party of a copy of the official subject to the dominion of the United transcript, or any part thereof, the States, depositions may be taken be- party may file a motion requesting cor- fore an officer authorized to administer rection of the transcript. Opposing oaths by the laws of the United States counsel shall, within such time as may or of the place where the examination be specified by the Judicial Officer, no- is held; within a foreign country, depo- tify the Judicial Officer in writing of sitions may be taken before a secretary his or her concurrence or disagreement of an embassy or legation, consul gen- with the requested corrections. Failure eral, vice consul or consular agent of to interpose timely objection to a pro- the United States, or any other person posed correction shall be considered to designated in the order for the taking be concurrence. Thereafter, the Judi- of a deposition. cial Officer shall by order specify the (g) Depositions may also be taken corrections to be made in the tran- and submitted on written interrog- script. The Judicial Officer on his or atories in substantially the same man- her own initiative may order correc- ner as depositions taken by oral exam- tions to be made in the transcript with ination. When a deposition is taken prompt notice to the parties of the pro- upon written interrogatories and cross- ceeding. Any changes ordered by the

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Judicial Officer other than the agree- by the Judicial Officer, either party ment of the parties shall be subject to may file a motion for reconsideration objection and exception. of the final agency decision. Each motion for reconsideration shall be ac- [36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998] companied by a brief clearly setting forth the points of fact and of law re- § 957.20 Proposed findings and conclu- lied upon in support of said motion. sions. § 957.23 Modification or revocation of (a) Each party to a proceeding, ex- orders. cept one who fails to appear at the hearing may, unless at the discretion A party against whom an order of de- of the Judicial Officer such is not ap- barment has been issued may file an propriate, submit proposed findings of application for modification or revoca- fact, conclusions of law and supporting tion thereof. The Recorder shall trans- reasons either in oral or written form mit a copy of the application to the in the discretion of the Judicial Offi- General Counsel, who shall file a writ- cer. The Judicial Officer may also re- ten reply. A copy of the reply shall be quire parties to any proceeding to sub- sent to the applicant by the Recorder. mit proposed findings of fact and con- Thereafter an order granting or deny- clusions of law with supporting rea- ing such application will be issued by sons. Unless given orally the date set the Judicial Officer. for filing of proposed findings of fact [36 FR 11574, June 16, 1971, as amended at 63 and conclusions of law shall be within FR 66051, Dec. 1, 1998] 15 days after the delivery of the official transcript to the Recorder who shall § 957.24 Computation of time. notify both parties of the date of its re- A designated period of time under the ceipt. The filing date for proposed find- rules in this part excludes the day the ings shall be the same for both parties. period begins, and includes the last day If not submitted by such date, or un- of the period unless the last day is a less extension of time for the filing Saturday, Sunday, or legal holiday, in thereof is granted, they will not be in- which event the period runs until the cluded in the record or given consider- close of business on the next business ation. day. (b) Except when presented orally before the close of the hearing, proposed § 957.25 Official record. findings of fact shall be set forth in serially numbered paragraphs and shall The transcript of testimony together state with particularity all evidentiary with all pleadings, orders, exhibits, facts in the record with appropriate ci- briefs, and other documents filed in the tations to the transcript or exhibits proceeding shall constitute the official supporting the proposed findings. Each record of the proceeding. proposed conclusion shall be separately stated. § 957.26 Public information. The Librarian of the Postal Service [36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998] shall maintain for public inspection in the Library copies of all final deci- § 957.21 Decision. sions. The Recorder maintains the complete official record of every pro- The Judicial Officer shall issue a ceeding. final agency decision. Such decision shall include findings and conclusions, [36 FR 11574, June 16, 1971, as amended at 63 with the reasons therefor, upon all the FR 66051, Dec. 1, 1998] material issues of fact or law presented on the record, and the appropriate § 957.27 Suspension. order. (a) Any firm or individual suspended under chapter 3, section 7 of the Postal § 957.22 Motion for reconsideration. Service Purchasing Manual who be- Within 10 days from the date thereof, lieves that the suspension has not been or such longer period as may be fixed in accordance with the provisions

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thereof, or with applicable laws or reg- 958.3 Petition; notice of hearing; answer; ulations, may appeal to the Judicial summary judgment. Officer for a review of the suspension. 958.4 Hearings. (b) Any such appeal shall be ad- 958.5 Election as to hearing. 958.6 Default. dressed to the Judicial Officer through 958.7 Presiding officers. the Vice President who ordered the 958.8 Proposed findings of fact and conclu- suspension within 20 days of the date sions of law. upon which the respondent has been 958.9 Initial decision. notified of the suspension. Such appeal 958.10 Appeal. shall concisely and in the manner of a 958.11 Final agency decision. pleading set forth the grounds upon 958.12 Compromise and informal disposi- which the suspension is contested and tion. may be supported by a brief and such 958.13 Petition to revoke, amend, or modify. 958.14 Ex parte communications. evidence as the respondent may desire to submit. AUTHORITY: 39 U.S.C. 204, 401. (c) Should the respondent desire oral SOURCE: 36 FR 11578, June 16, 1971, unless argument or a hearing before the Judi- otherwise noted. cial Officer in connection with the appeal, application therefor shall be in- § 958.1 Authority for rules. cluded in the appeal. In the event that The Judicial Officer promulgates the the Judicial Officer grants the respond- rules in this part pursuant to authority ent’s application for a hearing the no- delegated by the Postmaster General. tice of suspension and the appeal shall constitute the pleadings defining the § 958.2 Scope of rules. issues therein and the hearing shall be The rules in this part shall be appli- regulated in accordance with the rules cable to cases in which a postmaster in this part concerning debarment pro- has issued a Determination denying an ceedings. application for post office box or caller (d) The decision of the Judicial Offi- service, or terminating the box or call- cer in any appeal shall constitute the er service being provided to a cus- final agency determination of the tomer, and in which a Petition in oppo- issues presented thereby. Either party sition to that Determination has been thereto may, however, file a motion for filed. reconsideration thereof, in accordance with the provisions of § 957.22. [46 FR 62847, Dec. 29, 1981] [36 FR 11574, June 16, 1971, as amended at 41 § 958.3 Petition; notice of hearing; an- FR 19309, May 12, 1976; 63 FR 66051, Dec. 1, swer; summary judgment. 1998] (a) Petition. Any applicant or cus- § 957.28 Ex parte communications. tomer who receives a postmaster’s De- termination may oppose it by filing, in The provisions of 5 U.S.C. 551(14), triplicate, a written Petition stating 556(d) and 557(d) prohibiting ex parte his reasons for opposing the Deter- communications are made applicable mination. The Petition, signed by the to proceedings under these rules of Petitioner or his attorney, shall be practice. filed by sending the Petition via cer- [42 FR 5358, Jan. 28, 1977] tified mail to the postmaster who issued the Determination, or by otherwise delivering it to the postmaster’s PART 958—RULES OF PRACTICE IN office. The Petition must be filed with- PROCEEDINGS RELATIVE TO THE in twenty days (Sundays and holidays REFUSAL TO PROVIDE POST OF- included) after the date on which the FICE BOX OR CALLER SERVICE Petitioner received the Determination. AND THE TERMINATION OF POST The postmaster shall immediately for- OFFICE BOX OR CALLER SERVICE ward two copies of the Petition to the Recorder, Judicial Officer Department, Sec. U.S. Postal Service, 2101 Wilson Boule- 958.1 Authority for rules. vard, Suite 600, Arlington, VA 22201– 958.2 Scope of rules. 3078.

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(b) Notice of hearing. On receipt of the matter for decision on the basis of the Petition, the Recorder shall schedule a appeal and answer, with the approval hearing on a date not later than 30 of the presiding officer and subject to days after the date of receipt. A Notice the right of the presiding officer to re- of Hearing shall be sent to the Peti- quire the parties to furnish such fur- tioner. A copy of the Notice of Hearing ther evidence or such briefs as the pre- and the Petition shall be sent to the siding officer may deem necessary. The General Counsel of the U.S. Postal request to waive oral hearing shall be Service. mailed to the presiding officer not (c) Answer. The General Counsel of later than 10 days prior to the date set the Postal Service shall file an Answer for the hearing. to the Petition within fifteen days after the date the General Counsel re- § 958.6 Default. ceived a copy of the Petition from the If a person who has not waived oral Recorder. hearing fails, without notice or with- (d) Summary judgment. Upon motion out adequate cause, satisfactory to the of either the General Counsel or the presiding officer, to appear at the hear- Petitioner, or on his or her own initia- ing, the presiding officer shall issue an tive, the presiding officer may find order dismissing the appeal. If no pro- that the Petition and Answer present test to such order of dismissal is re- no genuine or material issues of fact ceived within 10 days from the date of requiring an evidentiary hearing and issuance of the order, such order shall may thereupon render an initial deci- become final. Any protest to the order sion granting or dismissing the Peti- of dismissal received within 10 days tion. The initial decision shall become from the date of its issuance shall be the final agency decision if a timely given such consideration as the pre- appeal is not taken. siding officer deems to be warranted by [46 FR 62847, Dec. 29, 1981, as amended at 63 the facts and circumstances alleged in FR 66052, Dec. 1, 1998; 67 FR 62179, Oct. 4, the protest. An order of dismissal 2002] issued under this section by an Admin- istrative Law Judge may be appealed § 958.4 Hearings. to the Judicial Officer within 10 days Hearings are held at 2101 Wilson Bou- from the date of the order. levard, Suite 600, Arlington, VA 22201– 3078, or such other location as may be [36 FR 11578, June 16, 1971, as amended by 42 designated by the presiding officer. Not FR 30504, June 15, 1977] later than 5 days prior to the date fixed § 958.7 Presiding officers. for the hearing, a party may file a request that a hearing be held to receive The presiding officer at any hearing evidence in his behalf at a place other shall be an Administrative Law Judge than that designated for hearing in the qualified in accordance with law, or the notice. He shall support his request Judicial Officer (39 U.S.C. 204). The with a statement outlining: (a) The Chief Administrative Law Judge shall evidence to be offered in such place; (b) assign cases to Administrative Law the names and addresses of the wit- Judges by rotation so far as prac- nesses who will testify; (c) the reasons ticable. The Judicial Officer may, for why such evidence cannot be produced good cause shown, preside at the recep- at Arlington, VA. The presiding officer tion of evidence in proceedings where shall give consideration to the conven- expedited hearings are requested by ei- ience and necessity of the parties and ther party. When the Judicial Officer the relevancy of the evidence to be of- presides at the hearing, he shall, in his fered. sole discretion, render a tentative or final decision after the conclusion of [36 FR 11578, June 16, 1971, as amended at 38 FR 17217, June 29, 1973; 63 FR 66052, Dec. 1, the hearing. Exceptions may be filed to 1998] a tentative decision in accordance with § 958.10. § 958.5 Election as to hearing. [36 FR 11578, June 16, 1971, as amended at 38 If both parties so elect, they may FR 20263, July 30, 1973; 42 FR 30504, June 15, waive an oral hearing and submit the 1977]

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§ 958.8 Proposed findings of fact and Thereafter an order granting or deny- conclusions of law. ing such application will be issued by Unless otherwise ordered by the pre- the Judicial Officer. siding officer, proposed findings of fact [36 FR 11578, June 16, 1971, as amended at 63 and conclusions of law and supporting FR 66052, Dec. 1, 1998] arguments shall be submitted orally or in writing at the conclusion of the § 958.14 Ex parte communications. hearing. The provisions of 5 U.S.C. 551(14), 556(d) and 557(d) prohibiting ex parte § 958.9 Initial decision. communications are made applicable Unless given orally at the conclusion to proceedings under these rules of of the hearing, the Administrative Law practice. Judge shall render an initial decision as expeditiously as practicable fol- [42 FR 5358, Jan. 28, 1977] lowing the conclusion of the hearing, and the receipt of the proposed find- PART 959—RULES OF PRACTICE IN ings, if any. The initial decision shall PROCEEDINGS RELATIVE TO THE become the final agency decision if a PRIVATE EXPRESS STATUTES timely appeal is not taken. Sec. § 958.10 Appeal. 959.1 Authority for rules. Either party may file exceptions in a 959.2 Scope of rules. brief on appeal to the Judicial Officer 959.3 Office, business hours. 959.4 Demands for payment of postage. within 5 days after receipt of the ini- 959.5 Appeals from demands. tial or tentative decision unless addi- 959.6 Revocations of suspension. tional time is granted. A reply brief 959.7 Notice of hearing. may be filed within 5 days after the re- 959.8 Service of petition filed under § 959.6. ceipt of the appeal brief by the oppos- 959.9 Filing documents for the record. ing party. 959.10 Default. 959.11 Amendment of pleadings. § 958.11 Final agency decision. 959.12 Continuances and extensions. 959.13 Hearings. The Judicial Officer shall render a 959.14 Change of place of hearings. final agency decision or he shall refer 959.15 Appearances. the matter to the Postmaster General 959.16 Presiding officers. or the Deputy Postmaster General for 959.17 Evidence. such final decision. The decision shall 959.18 Subpoenas. be served upon the parties and upon 959.19 Witness fees. the postmaster at the office where the 959.20 Depositions. 959.21 Transcript. box is located. 959.22 Proposed findings and conclusions. 959.23 Decisions. § 958.12 Compromise and informal dis- 959.24 Exceptions to initial decision or ten- position. tative decision. Nothing in these rules precludes the 959.25 Judicial Officer. compromise, settlement, and informal 959.26 Motion for reconsideration. disposition of proceedings initiated 959.27 Modification or revocation of orders. under these rules at any time prior to 959.28 Computation of time. the issuance of the final agency deci- 959.29 Official record. 959.30 Public information. sion. 959.31 Ex parte communications. § 958.13 Petition to revoke, amend, or AUTHORITY: 39 U.S.C. 204, 401; 39 CFR modify. 224.1(c)(6)(ii)(D). A party against whom an order has SOURCE: 39 FR 33213, Sept. 16, 1974, unless been issued may file a petition for the otherwise noted. revocation, amendment or modification thereof. The Recorder shall trans- § 959.1 Authority for rules. mit a copy of the petition to the Gen- These rules are issued by the Judicial eral Counsel, who may file a written Officer of the U.S. Postal Service pur- reply. A copy of the reply shall be sent suant to authority delegated by the to the petitioner by the Recorder. Postmaster General.

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§ 959.2 Scope of rules. (4) Be accompanied by a copy of the demand. These rules apply to all Postal Serv- (c) Factual allegations that are not ice proceedings in which part 310 of denied by the petition may be deemed this title authorizes appeals to the Ju- to have been admitted. The demand dicial Officer from demands for postage and the petition (together with other for matter carried in violation of the documents authorized in this part) Private Express Statutes, and in pro- shall become the pleadings in appeals ceedings to revoke, as to any person, from demands. the suspension of provisions of the Pri- vate Express Statutes in accordance [39 FR 33213, Sept. 16, 1974, as amended at 63 with part 320 of this title. FR 66052, Dec. 1, 1998]

§ 959.3 Office, business hours. § 959.6 Revocations of suspension. (a) The General Counsel, or a member The offices of the officials mentioned of the General Counsel’s staff as may in these rules are located at 2101 Wil- be designated, may initiate a revoca- son Boulevard, Suite 600, Arlington, VA tion of the suspension of the Private 22201–3078 and are open Monday Express Statutes as provided in part through Friday from 8:15 a.m. to 4:45 320 of this title as to any person, by fil- p.m. ing, in triplicate, a petition with the [63 FR 66052, Dec. 1, 1998] Recorder which (1) Names the person involved; § 959.4 Demands for payment of post- (2) States the legal authority under age. which the proceeding is initiated; Final demands for payment of post- (3) States the facts in a manner suffi- age will be accompanied by a copy of cient to enable the person named to these rules and will: make answer thereto; and, (a) State that the demand is final un- (4) Recommends the issuance of an less appealed under these rules within appropriate order. 15 days after receipt of the demand; (b) Answer. (1) The person named in (b) Describe the transaction on which the petition (designated the ‘‘Respond- the demand is based and the provisions ent’’ in these rules) shall file an answer of law or regulation alleged to have with the Recorder within 15 days after been violated; and being served with a copy of the petition 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 § 959.5 Appeals from demands. explaining each of the allegations set 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.

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(7) If the respondent does not desire § 959.9 Filing documents for the to appear at the hearing in person or record. by counsel, the matter shall be deemed (a) Each party shall file with the Re- submitted for determination pursuant corder pleadings, motions, orders and to paragraph (b) of § 959.10. other documents for the record. The [39 FR 33213, Sept. 16, 1974, as amended at 63 Recorder shall cause copies to be deliv- FR 66052, Dec. 1, 1998] ered promptly to other party(ies) to the proceeding and to the presiding of- § 959.7 Notice of hearing. ficer. (b) The parties shall submit three When a petition is filed, the Recorder copies of all documents unless other- shall issue a notice of hearing, stating wise ordered by the presiding officer. the time and place of the hearing and One copy shall be signed as the origi- the date for filing an answer which nal. shall not exceed 15 days from the date (c) Documents shall be dated and of service of the petition, and a ref- state the title of the proceeding and, erence to the effect of failure to file an except initial petitions, the docket answer or appear at the hearing. (See number. Any pleading or other docu- §§ 959.5(c), 959.6(b), and 959.10.) When- ment required by order of the presiding ever practicable, the hearing date shall officer to be filed by a specified date, be within 30 days of the date of the no- shall be delivered to the Recorder on or tice. before such date. The date of filing shall be entered thereon by the Re- [39 FR 33213, Sept. 16, 1974, as amended at 63 corder. FR 66052, Dec. 1, 1998] [39 FR 33213, Sept. 16, 1974, as amended at 63 § 959.8 Service of petition filed under FR 66052, Dec. 1, 1998] § 959.6. § 959.10 Default. (a) The Recorder shall cause a notice (a) If the respondent fails to file an of hearing and a copy of the petition to answer within the time specified in the be transmitted to the postmaster at notice of hearing, the respondent shall any office of address of the respondent be deemed in default and to have in which the respondent is doing busi- waived hearing and further procedural ness, which shall be delivered to the re- steps. The Judicial Officer shall there- spondent or respondent’s agent by said after issue an order without further no- postmaster or the postmaster’s des- tice to the respondent. ignee. A receipt acknowledging deliv- (b) If the respondent files an answer ery of the notice shall be secured from but fails to appear at the hearing, the the respondent or respondent’s agent presiding officer shall receive peti- and forwarded to the Recorder, to be- tioner’s evidence and render an initial come a part of the official record. decision. (b) If, after 5 days, the postmaster or [39 FR 33213, Sept. 16, 1974, as amended at 63 the postmaster’s designee, can find no FR 66052, Dec. 1, 1998] person to accept service of the notice of hearing and petition pursuant to § 959.11 Amendment of pleadings. paragraph (a) of this section, the notice (a) Amendments proposed prior to and copy of the petition may be deliv- the hearing shall be filed with the Re- ered in the usual manner as other mail corder. Amendments proposed there- addressed to the respondent. A state- after shall be filed with the presiding ment, showing the time and place of officer. delivery, signed by the postal employee (b) By consent of the parties, a plead- who delivered the notice of hearing and ing may be amended at any time. Also, petition shall be forwarded to the Re- a party may move to amend a pleading corder and such statement shall con- at any time prior to the close of the stitute evidence of service. hearing and, provided that the amendment is reasonably within the scope of [39 FR 33213, Sept. 16, 1974, as amended at 63 the proceeding initiated by the peti- FR 66052, Dec. 1, 1998] 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 ojecting 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 to act by the agency upon which the analysis, engineering report, test, adversary adjudication is based. The project or similar matter prepared on 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 postal proceedings. per hour, or such rate as prescribed by (b) No award for the fee of an attor- 5 U.S.C. 504, in some or all of the types ney or agent under these rules may ex- of proceedings covered by this part. ceed $125.00 per hour, or such rate as The Postal Service will conduct any prescribed by 5 U.S.C. 504. No award to rulemaking proceedings for this pur- compensate an expert witness may expose under the informal rulemaking ceed the highest rate at which the procedures of the Administrative Pro- Postal Service pays expert witnesses. cedure Act. However, an award may also include (b) Any person may request the Post- the reasonable expenses of the attor- al Service to initiate a rulemaking pro- ney, agent, or witness as a separate ceeding to increase the maximum rate 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 customary fee for similar services, or, if days after it is filed, by determining to an employee of the applicant, the fully initiate a rulemaking proceeding, de- allocated cost of the services; nying the request, or taking other ap- (2) The prevailing rate for similar propriate action. services in the community in which the [46 FR 45945, Sept. 16, 1981, as amended at 66 attorney, agent or witness ordinarily FR 55577, Nov. 2, 2001] 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 An applicant seeking payment of an agency, the decision shall allocate re- 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 PART 961—RULES OF PRACTICE IN Service counsel may seek review of the PROCEEDINGS RELATIVE TO EM- initial decision on the fee application, in accordance with § 952.25 or § 953.14. If PLOYEE HEARING PETITIONS neither the applicant nor the Postal UNDER SECTION 5 OF THE DEBT Service counsel seeks review, the ini- COLLECTION ACT tial decision on the application shall Sec. become a final decison of the Postal 961.1 Authority for rules. Service 30 days after it is issued. If re- 961.2 Scope of rules. view is taken, the Judicial Officer will 961.3 Definitions. issue a final decision on the applica- 961.4 Employee petition for a hearing and tion or remand the application to the supplement to petition. adjudicative officer for further pro- 961.5 Effect of Petition filing. 961.6 Filing, docketing and serving docu- ceedings. ments; computation of time; representa- (b) In Board of Contract Appeals pro- tion of parties. ceedings, either party may seek recon- 961.7 Answer to Petition and Supplement to sideration of the decision on the fee ap- Petition. plication in accordance with 39 CFR 961.8 Hearing Official authority and responsibilities. 955.30. 961.9 Effect of Hearing Official’s decision; [46 FR 45945, Sept. 16, 1981, as amended at 52 motion for reconsideration. FR 6798, Mar. 5, 1987] 961.10 Waiver of employee rights. 961.11 Ex parte communications.

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AUTHORITY: 39 U.S.C. 204, 401; 5 U.S.C. Act refers to the formal written notice 5514(a). required by section 5 of the Debt Col- SOURCE: 51 FR 1251, Jan. 10, 1986, unless lection Act before involuntary collec- otherwise noted. tion deductions can be taken from an employee’s salary. § 961.1 Authority for rules. (f) Postmaster/Installation Head refers These rules are issued by the Judicial to the Postal Service official who is au- Officer pursuant to authority delegated thorized under the Postal Service Em- by the Postmaster General. ployee and Labor Relations Manual to make the initial determination of em- § 961.2 Scope of rules. ployee indebtedness and to issue the The rules in this part apply to the ‘‘Notice of Involuntary Administrative hearing provided by section 5 of the Salary Offsets Under the Debt Collec- Debt Collection Act of 1982, as amend- tion Act.’’ ed, 5 U.S.C. 5514(a), on the Postal Serv- (g) Recorder refers to the Recorder, ice’s determination of the existence or Judicial Officer Department, U.S. Post- amount of an employee debt to the al Service, 2101 Wilson Boulevard, Postal Service, or of the terms of the Suite 600, Arlington, VA 22201–3078. employee’s debt repayment schedule. [51 FR 1251, Jan. 10, 1986, as amended at 63 In addition, these rules, as appropriate, FR 66053, Dec. 1, 1998] apply to a hearing under section 5 of the Debt Collection Act when an Ad- § 961.4 Employee petition for a hearing ministrative Law Judge or an Adminis- and supplement to petition. trative Judge in the Judicial Officer (a) If an employee desires a hearing, Department is designated as the Hear- prescribed by section 5 of the Debt Col- ing Official for a creditor Federal agen- lection Act, on the Postal Service’s de- cy other than the Postal Service pursu- termination of the existence or amount ant to an agreement between the Post- of a debt, or on the involuntary repay- al Service and that agency. ment terms proposed by the Postal Service, the employee must file a writ- § 961.3 Definitions. ten, signed petition with the Recorder, (a) Employee refers to a current em- Judicial Officer Department, U.S. Post- ployee of the Postal Service or another al Service, 2101 Wilson Boulevard, Federal agency who is alleged to be in- Suite 600, Arlington, VA 22201–3078, on debted to the Postal Service or another or before the fifteenth (15th) calendar creditor Federal agency and whose day following the employee’s receipt of hearing under section 5 of the Debt the Postal Service’s ‘‘Notice of Invol- Collection Act is being conducted untary Administrative Salary Offsets under these rules. Under the Debt Collection Act.’’ (b) General Counsel refers to the Gen- (b) The hearing petition is to include eral Counsel of the Postal Service, and the following: includes a designated representative. (1) The words, ‘‘Petition for Hearing (c) Hearing Official refers to an Ad- Under the Debt Collection Act,’’ promi- ministrative Law Judge qualified to nently captioned at the top of the first hear cases under the Administrative page: Procedure Act, an Administrative (2) The name of the employee peti- Judge appointed under the Contract tioner and the employee’s work and Disputes Act of 1978, or any other home addresses, and work and home qualified person not under the control telephone numbers; or other address or supervision of the Postmaster Gen- and telephone number where the em- eral, who is designated by the Judicial ployee may be contacted about the Officer to conduct the hearing under hearing proceedings; section 5 of the Debt Collection Act of (3) A statement of the date the em- 1982, as amended, 5 U.S.C. 5514(a). ployee received the ‘‘Notice of Involun- (d) Judicial Officer refers to the Judi- tary Administrative Salary Offsets cial Officer or Acting Judicial Officer Under the Debt Collection Act,’’ and a of the United States Postal Service. copy of the Notice; (e) Notice of Involuntary Administrative (4) A statement indicating whether Salary Offsets Under the Debt Collection the employee requests an oral hearing

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or a hearing based solely on written § 961.5 Effect of Petition filing. submissions; Upon receipt and docketing of the (5) If the employee requests an oral employee’s Petition for a hearing, the hearing, a statement of the evidence he Recorder will notify the Postmaster/In- or she will produce which makes an stallation Head and the General Coun- oral hearing necessary, including a list sel that the Petition has been filed and of witnesses, with their addresses, that pursuant to section 5 of the Debt whom the employee expects to call; the Collection Act, a timely-filed Petition proposed city for the hearing site, with for a hearing stays further collection justification for holding the hearing in action. that city; and recommended alternative dates for the hearing; which § 961.6 Filing, docketing and serving documents; computation of time; should be within 40 days from filing the representation of parties. Petition; (a) Filing. All documents relating to (6) A statement of the grounds upon the Debt Collection Act hearing pro- which the employee objects to the ceedings must be filed by the employee Postal Service’s determination of the or the General Counsel with the Re- existence or amount of the debt, or to corder. (Normal Recorder office busi- the proposed offset schedule. This ness hours are between 8:15 a.m. and statement should identify and explain 4:45 p.m., eastern standard or day-light with reasonable specificity and brevity saving time as appropriate during the the facts, evidence, and legal argu- year.) The Recorder will transmit a ments, if any, which the employee be- copy of each document filed to the lieves support his or her position; other party, and the original to the (7) Copies of all records in the em- Hearing Official. ployee’s possession which relate to the (b) Docketing. The Recorder will debt; and maintain a docket record of Debt Col- (8) If an employee contends that the lection Act hearing petition pro- Postal Service’s proposed offset sched- ceedings and will assign each employee ule would result in a severe financial Petition a docket number. After notification of the docket number, the em- hardship on the employee and his or ployee and General Counsel should her spouse and dependents, an alter- refer to it on any further filings re- native offset schedule, and a statement garding the Petition. and supporting documents indicating (c) Time computation. A filing period for the employee and his or her spouse under the rules in this part excludes and dependents for the one year pre- the day the period begins, and includes ceding the Postal Service’s notice and the last day of the period unless the for the repayment period proposed by last day is a Saturday, Sunday, or legal the employee in his or her altenative holiday, in which event the period runs offset schedule, their total income until the close of business on the next from all sources; assets; liabilities; business day. number of dependents; and expenses for (d) Representation of parties. After the food, housing, clothing, transportation, filing of the Petition, further document medical care, and exceptional expenses, transmittals for, or communications if any. with, the Postmaster/Installation Head (c) The employee may, if necessary, or Postal Service shall be through file with the Recorder, additional in- their representative, the General Coun- formation as a Supplement to the Peti- sel, or, if an appropriate notice of ap- tion on or before the thirtieth (30th) pearance is filed, the General Counsel’s calendar day following the employee’s designee. If a notice of appearance by receipt of the Postal Service’s ‘‘Notice an attorney authorized to practice law in any of the United States or the Dis- of Involuntary Administrative Salary trict of Columbia or a territory of the Offsets Under the Debt Collection United States is filed in behalf of an Act.’’ employee, further transmissions of [51 FR 1251, Jan. 10, 1986, as amended at 63 documents and other communications FR 66053, Dec. 1, 1998] with the employee shall be made

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through his or her attorney rather (g) Issuing the final decision orally or than directly with the employee. in writing no later than sixty (60) days after the filing of the employee’s hear- § 961.7 Answer to Petition and Supple- ing Petition. When an oral decision is ment to Petition. rendered, a written confirmation will If the employee’s Petition states rea- thereafter be sent to the parties. The sons to support the employee’s posi- decision must include the determination, within 15 days from notice of the tion of the amount and validity of the Petition, the General Counsel shall file alleged debt and, where applicable, the an Answer to the Petition, and attach repayment schedule. It should also in- all available relevant records and docu- clude findings and reasons. ments in support of the Postal Serv- ice’s claim, and a list of witnesses the § 961.9 Effect of Hearing Official’s de- Postal Service intends to call if an oral cision; motion for reconsideration. hearing is granted. If the employee The Hearing Official’s decision shall files a Supplement to the Petition, the be the final administrative determina- General Counsel, within ten (10) cal- tion on the employee’s debt or repay- endar days from the filing of the Sup- ment schedule. No reconsideration of plement with the Recorder must file the decision will be allowed unless a any Supplemental Answer and records to support the position of the Postal motion for reconsideration is filed by Service. either party within 10 days from receipt of the decision and shows good § 961.8 Hearing Official authority and reasons for reconsideration. Reconsid- responsibilities. eration will be allowed only in the dis- The Hearing Official shall provide a cretion of the Hearing Official. A mo- full and fair hearing. The proceedings tion for reconsideration by the em- must be expedited to ensure issuance of ployee will not operate to stay the col- the final decision no later than 60 days lection action authorized by the Hear- after the filing of the employee’s hearing Official’s decision. ing Petition. The Hearing Official’s authority includes, but is not limited to, § 961.10 Waiver of employee rights. the following: The Hearing Official may determine (a) Ruling on all offers, motions or the employee has waived his or her requests by the parties; right to a hearing and the employee’s (b) Issuing any notices, orders or pay shall be offset in accordance with memoranda to the parties concerning the Postal Service’s offset schedule, if the hearing proceedings; the employee: (c) Using telephone conferences with (a) Files a Petition for hearing after the parties to expedite the proceedings. the end of the 15-day period allowed by A memorandum of a telephone con- the Act for filing the Petition, and fails ference will be transmitted to both par- to demonstrate to the satisfaction of ties; the Hearing Official good cause for the (d) Determining if an oral hearing delay; should be held; and setting the place, (b) Has received notice to appear at date and time for the hearing or the an oral hearing but fails to do so with- taking of testimony by telephone con- out showing circumstances beyond the ference; employee’s control; (e) Administering oaths or affirma- (c) Fails to file required submissions tions to witnesses, and conducting the or to comply with orders of the Hear- hearing in a manner to maintain discipline and decorum while assuring ing Official, and the failure makes it that relevant, reliable and probative difficult or impossible to hold the hear- evidence is elicited on the issues in dising or to issue the decision within the pute, but irrelevant, immaterial or rep- statutory time; etitious evidence is excluded; (d) Files a withdrawal of his or her (f) Establishing the record in the Petition for a hearing with the Re- case; corder.

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§ 961.11 Ex parte communications. edies Act of 1986 (codified at 31 U.S.C. 3801–3812). Ex parte communications between a Hearing Official or his staff and a party § 962.2 Definitions. shall not be made. This prohibition does not apply to procedural matters. (a) Attorney refers to an individual A memorandum of any communication authorized to practice law in any of the between the Hearing Official and a United States or the District of Colum- party will be transmitted to both par- bia or a territory of the United States. ties. (b) Complaint refers to the administrative Complaint served by the Re- viewing Official on a Respondent pur- PART 962—RULES OF PRACTICE IN suant to § 273.8 of this title. PROCEEDINGS RELATIVE TO THE (c) Initial Decision refers to the writ- PROGRAM FRAUD CIVIL REM- ten decision which the Presiding Offi- EDIES ACT cer is required by § 962.20 to render, and includes a revised initial decision Sec. issued following a remand. 962.1 Purpose. (d) Investigating Official refers to the 962.2 Definitions. Inspector General of the United States 962.3 Petition for hearing. Postal Service or any designee within 962.4 Referral of complaint. the Office of the Inspector General. 962.5 Scope of hearing; evidentiary stand- (e) Judicial Officer refers to the Judi- ard. 962.6 Notice of hearing. cial Officer or Acting Judicial Officer 962.7 Hearing location. of the United States Postal Service or 962.8 Rights of parties. for purposes other than specified in 962.9 Responsibilities and authority of pre- § 962.21 any designee within the Judi- siding officer. cial Officer Department. 962.10 Prehearing conferences. (f) Party refers to the Postal Service 962.11 Respondent access to information. or the Respondent. 962.12 Depositions; interrogatories; admis- (g) Person refers to any individual, sion of facts; production and inspection partnership, corporation, association, of documents. 962.13 Subpoenas. or private organization. 962.14 Enforcement of subpoenas. (h) Postmaster General refers to the 962.15 Sanctions. Postmaster General of the United 962.16 Disqualification of reviewing official States or his designee. or presiding official. (i) Presiding Officer refers to an Ad- 962.17 Ex parte communications. ministrative Law Judge designated by 962.18 Post-hearing briefs. the Judicial Officer to conduct a hear- 962.19 Transcript of proceedings. ing authorized by 31 U.S.C. 3803. 962.20 Initial decision. (j) Recorder refers to the Recorder of 962.21 Appeal of initial decision to judicial officer. the United States Postal Service, 2101 962.22 Form and filing of documents. Wilson Boulevard, Suite 600, Arlington, 962.23 Service of notice of hearing, other VA 22201–3078. documents. (k) Representative refers to an attor- 962.24 Computation of time. ney or other advocate. 962.25 Continuances and extensions. (l) Respondent refers to any person al- 962.26 Settlement. leged to be liable for a civil penalty or 962.27 Limitations. assessment under 31 U.S.C. 3802. AUTHORITY: 31 U.S.C. Chapter 38; 39 U.S.C. (m) Reviewing Official refers to the 401. General Counsel of the Postal Service SOURCE: 52 FR 12904, Apr. 20, 1987, unless or any designee within the Law Depart- otherwise noted. ment who serves in a position for which the rate of basic pay is not less § 962.1 Purpose. than the minimum rate payable under This part establishes the procedures section 5376 of title 5 of the United governing the hearing and appeal States Code. rights of any person alleged to be liable [52 FR 12904, Apr. 20, 1987, as amended at 63 for civil penalties and assessments FR 66053, Dec. 1, 1998; 67 FR 62179, Oct. 4, under the Program Fraud Civil Rem- 2002]

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§ 962.3 Petition for hearing. § 962.5 Scope of hearing; evidentiary Within 30 days of receiving the Post- standard. al Service’s Complaint, issued pursuant (a) A hearing under this part shall be to § 273.8 of this title, alleging liability conducted by the Presiding Officer on under 31 U.S.C. 3802, the Respondent the record (1) to determine whether the may request a hearing under the Pro- Respondent is liable under 31 U.S.C. gram Fraud Civil Remedies Act by fil- 3802, and (2) if so, to determine the ing a written Hearing Petition with the amount of any civil penalty or assess- Recorder in accordance with § 962.22(b). ment to be imposed. The Respondent’s Petition must in- (b) The Postal Service must prove its clude the following: case against a Respondent by a prepon- (a) The words ‘‘Petition for Hearing derance of the evidence. Under the Program Fraud Civil Rem- (c) The parties may offer at a hearing edies Act,’’ or other words reasonably on the merits such relevant evidence as identifying it as such; they deem appropriate and as would be (b) The name of the Respondent as admissible under the generally accept- well as his or her work and home ad- ed rules of evidence applied in the dresses, and work and home telephone courts of the United States in nonjury numbers; or other address and tele- trials, subject, however, to the sound phone number where the Respondent discretion of the Presiding Officer in may be contacted about the hearing supervising the extent and manner of proceedings; presentation of such evidence. In gen- (c) A statement of the date the Re- eral, admissibility will hinge on rel- spondent received the Complaint issued evancy and materiality. However, rel- by the Reviewing Official; evant evidence may be excluded if its (d) A statement indicating whether probative value is substantially out- the Respondent requests an oral hear- weighed by the danger of unfair preju- ing or a decision on the record; dice, or by considerations of undue (e) If the Respondent requests an oral delay, waste of time, or needless presentation of cumulative evidence. hearing, a statement proposing a city for the hearing site, with justification § 962.6 Notice of hearing. for holding the hearing in that city, as well as recommended dates for the (a) Within a reasonable time after re- hearing; and ceiving the Respondent’s Hearing Peti- (f) A statement admitting or denying tion and the Complaint, the Presiding each of the allegations of liability Officer shall serve, in accordance with made in the Complaint, and stating § 962.23, upon the Respondent and the any defense on which the Respondent Reviewing Official, a Notice of Hearing intends to rely. containing the information set forth in paragraph (b) of this section. § 962.4 Referral of complaint. (b) The Notice of Hearing required by paragraph (a) of this section must in- (a) If the Respondent fails to request clude: a hearing within the specified period, (1) The tentative hearing site, date, the Reviewing Official shall transmit and time; 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 receiving a copy of the Petition, shall (5) A description of the procedures promptly transmit to the Presiding Of- governing the conduct of the hearing; ficer a copy of the Postal Service’s and Complaint. (6) Such other information as the Presiding Officer deems appropriate.

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§ 962.7 Hearing location. (3) Continuing or recessing the hearing in whole or in part for a reasonable An oral hearing under this part shall period of time; be held (4) Administering oaths and affirma- (a) In the judicial district of the tions to witnesses; United States in which the Respondent (5) Issuing subpoenas, requiring the resides or transacts business; or attendance and testimony of witnesses (b) In the judicial district of the and the production of all information, United States in which the claim or documents, reports, answers, records, statement upon which the allegation of accounts, papers, and other data and liability under 31 U.S.C. 3802 was made, documentary evidence which the Pre- presented, or submitted; or siding Officer considers relevant and (c) In such other place as may be material to the hearing; agreed upon by the Respondent and the (6) Ruling on all offers, motions, re- Presiding Officer. quests by the parties, and other proce- § 962.8 Rights of parties. dural matters; (7) Issuing any notices, orders, or Any party to a hearing under this memoranda to the parties concerning part shall have the right the proceedings; (a) To be accompanied, represented, (8) Regulating the scope and timing and advised, by a representative of his of discovery; own choosing; (9) Regulating the course of the hear- (b) To participate in any prehearing ing and the conduct of the parties and or post-hearing conference held by the their representatives; Presiding Officer; (10) Examining witnesses; (c) To agree to stipulations of fact or (11) Receiving, ruling on, excluding, law, which shall be made part of the or limiting evidence in order to assure record; that relevant, reliable and probative (d) To make opening and closing evidence is elicited on the issues in dis- statements at the hearing; pute, but irrelevant, immaterial or rep- (e) To present oral and documentary etitious evidence is excluded; evidence relevant to the issues at the (12) Deciding cases, upon motion of a hearing; party, in whole or in part by summary (f) To submit rebuttal evidence; judgment where there is no disputed (g) To conduct such cross-examina- issue of material fact; tion as may be required for a full and (13) Establishing the record in the true disclosure of the facts; and case; and (h) To submit written briefs, pro- (14) Issuing a written initial decision posed findings of fact, and proposed containing findings of fact, conclusions conclusions of law. of law, and determinations with respect to whether a penalty or assess- § 962.9 Responsibilities and authority ment should be imposed, and if so, the of presiding officer. amount of such penalty or assessment. (a) The Presiding Officer shall conduct a fair and impartial hearing, avoid § 962.10 Prehearing conferences. delay, maintain order, and assure that (a) At a reasonable time in advance a record of the proceeding is made. of the hearing, and with adequate no- (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;

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(4) Limitation of the number of wit- § 962.12 Depositions; interrogatories; nesses; admission of facts; production and (5) Exchange of witness lists, copies inspection of documents. of prior statements of witnesses, and (a) General Policy and protective or- copies of hearing exhibits; ders. The parties are encouraged to en- (6) Scheduling dates for the exchange gage in voluntary discovery proce- of witness lists and of proposed exhib- dures. In connection with any dis- its; covery procedure permitted under this (7) Discovery; part, the Presiding Officer may issue (8) Possible changes in the scheduled any order which justice requires to pro- hearing date, time or site; and tect a party or person from annoyance, (9) Any other matters related to the embarrassment, oppression, or undue proceeding. burden or expense. Such orders may include limitations on the scope, method, (b) Within a reasonable time after time and place for discovery, and provi- the completion of a prehearing con- sions for protecting the secrecy of conference, the Presiding Officer shall fidential information or documents. issue an order detailing all matters Each party shall bear its own expenses agreed upon by the parties, or ordered relating to discovery. by the Presiding Officer, at such con- (b) Depositions. (1) After the issuance ference. of a Notice of Hearing described in § 962.11 Respondent access to informa- § 962.6, the parties may mutually agree tion. to, or the Presiding Officer may, upon application of either party and for good (a)(1) Except as provided in para- cause shown, order the taking of testi- graph (a)(2) of this section, the Re- mony of any person by deposition upon spondent, at any time after receiving oral examination or written interrog- the Notice of Hearing required by atories before any officer authorized to § 962.6, may review, and upon payment administer oaths at the place of exam- of a duplication fee established under ination, for use as evidence or for pur- § 265.8(c) of this title, may obtain a poses of discovery. The application for copy of, all relevant and material docu- order shall specify whether the purpose ments, transcripts, records, and other of the deposition is discovery or for use materials, which relate to the allega- as evidence. tions of liability, and upon which the (2) The time, place, and manner of findings and conclusions of the Inves- taking depositions shall be as mutually tigating Official under § 273.5 of this agreed by the parties, or failing such title are based. agreement, governed by order of the (2) The Respondent is not entitled to Presiding Officer. review or obtain a copy of any docu- (3) No testimony taken by deposi- ment, transcript, record, or other mations shall be considered as part of the terial which is privileged under Federal evidence in the hearing unless and law. until such testimony is offered and re- (b) At any time after receiving the ceived in evidence at such hearing. Notice of Hearing required by § 962.6, Depositions will not ordinarily be re- the Respondent shall be entitled to ob- ceived in evidence if the deponent is tain all exculpatory information in the present and can testify personally at possession of the Investigating Official the hearing. In such instances, how- or the Reviewing Official relating to ever, the deposition may be used to the allegations or liability under 31 contradict or impeach the testimony of U.S.C. 3802. Paragraph (a)(2) of this sec- the witness given at the hearing. In tion does not apply to any document, cases submitted for a decision on the transcript, record, or other material, record, the Presiding Officer may, in or any portion thereof, in which such his discretion, receive depositions as exculpatory information is contained. evidence in supplementation of that (c) Requests to review or copy mate- record. rial under this section must be directed (c) Interrogatories to parties. After the to the Reviewing Official who must reissuance of a Notice of Hearing de- spond within a reasonable time. scribed in § 962.6, a party may serve on

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the other party written interrogatories transacts his business in person, or at to be answered separately in writing, another location convenient for him signed under oath and returned within that is specifically determined by the 30 days. Upon timely objection by the Presiding Officer; party, the Presiding Officer will deter- (2) Testimony at a hearing. The attend- mine the extent to which the interrog- ance of a witness for the purpose of atories will be permitted. taking testimony at a hearing; and (d) Admission of facts. After the (3) Production of books and papers. In issuance of a Notice of Hearing de- addition to paragraphs (a)(1) and (a)(2) scribed in § 962.6, a party may serve of this section, the production by the upon the other party a request for the witness at the deposition or hearing of admission of specified facts. Within 30 books and papers designated in the sub- days after service, the party served poena. shall answer each requested fact or file (b) Voluntary cooperation. Each party objections thereto. The factual propo- is expected (1) to cooperate and make sitions set out in the request shall be available witnesses and evidence under deemed admitted upon the failure of a its control as requested by the other party to respond to the request for ad- party, without issuance of a subpoena, mission. and (2) to secure voluntary attendance (e) Production and inspection of docu- of desired third-party books, papers, ments. Upon motion of any party show- documents, or other tangible things ing good cause therefor, and upon no- whenever possible. tice, the Presiding Officer may order (c) Requests for subpoenas. (1) A re- the other party to produce and permit quest for a subpoena shall normally be the inspection and copying or filed at least: photographing of any designated docu- (i) 15 days before a scheduled deposi- ments or objects, not privileged, spe- tion where the attendance of a witness cifically identified, and their relevance at a deposition is sought; and materiality to the cause or causes (ii) 30 days before a scheduled hearing in issue explained, which are reason- where the attendance of a witness at a ably calculated to lead to the discovery hearing is sought. or admissible evidence. If the parties (2) A request for a subpoena shall cannot themselves agree thereon, the state the reasonable scope and general Presiding Officer shall specify just relevance to the case of the testimony terms and conditions in making the in- and of any books, papers, documents, spection and taking the copies and pho- or other tangible things sought. tographs. (3) The Presiding Officer, in his dis- (f) Limitations. Under no cir- cretion, may honor requests for sub- cumstances may a discovery procedure poenas not made within the time limi- be used to reach tations specified in this paragraph. (1) Documents, transcripts, records, (d) Requests to quash or modify. Upon or other material which a person is not written request by the person subpoe- entitled to review pursuant to § 962.11; naed or by a party, made within 10 days (2) The notice sent to the Attorney after service but in any event not later General from the Reviewing Official than the time specified in the subpoena under § 273.6 of this title; or for compliance, the Presiding Officer (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,

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shall cite 31 U.S.C. 3804(b) as the au- under this section, the Postal Service thority under which it is issued, and shall request the Attorney General to shall command each person to whom it petition the district court for the dis- is directed to attend and give testi- trict in which a hearing under this part mony, and if appropriate, to produce is being conducted or in which the per- specified books and papers at a time son receiving the subpoena resides or and place therein specified. In issuing a conducts business to issue such an subpoena to a requesting party, the order. Presiding Officer shall sign the subpoena and may, in his discretion, enter § 962.15 Sanctions. the name of the witness and otherwise leave it blank. The party to whom the (a) The Presiding Officer may sanc- subpoena is issued shall complete the tion a person, including any party or subpoena before service. representative, for (2) Where the witness is located in a (1) Failing to comply with a lawful foreign country, a letter rogatory or order or prescribed procedure; subpoena may be issued and served (2) Failing to prosecute or defend an under the circumstances and in the action; or manner provided in 28 U.S.C. 1781–1784. (3) Engaging in other misconduct (f) Service. (1) The party requesting that interferes with the speedy, or- issuance of a subpoena shall arrange derly, or fair conduct of the hearing. for service. (b) Any such sanction, including but (2) A subpoena requiring the attend- not limited to those listed in para- ance of a witness at a deposition or graphs (c), (d), and (e) of this section, hearing may be served at any place. A shall reasonably relate to the severity subpoena may be served by a United and nature of the failure or mis- States marshal or deputy marshal, or conduct. by any other person who is not a party (c) Failure to comply with an order. and not less than 18 years of age. Serv- When a party fails to comply with an ice of a subpoena upon a person named order, including an order for taking a therein shall be made by personally de- deposition, the production of evidence livering a copy to that person and ten- dering the fees for one day’s attend- within the party’s control, or a request ance and the mileage provided by 28 for admission, the Presiding Officer U.S.C. 1821 or other applicable law. may: (3) The party at whose instance a (1) Draw an inference in favor of the subpoena is issued shall be responsible requesting party with regard to the infor the payment of fees and mileage of formation sought; the witness and of the officer who (2) Prohibit such party from intro- serves the subpoena. The failure to ducing evidence concerning, or other- make payment of such charges on de- wise relying upon, testimony relating mand may be deemed by the Presiding to the information sought; Officer as sufficient ground for striking (3) Permit the requesting party to in- the testimony of the witness and the troduce secondary evidence concerning evidence the witness has produced. the information sought; and [52 FR 12904, Apr. 20, 1987, as amended at 67 (4) Strike any part of the pleadings FR 62179, Oct. 4, 2002] or other submissions of the party failing to comply with such request. § 962.14 Enforcement of subpoenas. (d) Failure to prosecute or defend. If In the case of contumacy or refusal a party fails to prosecute or defend an to obey a subpoena issued pursuant to action under this part commenced by §§ 962.9(b)(5) and 962.13, the district service of a Complaint, the Presiding courts of the United States have juris- Officer may dismiss the action or enter diction to issue an appropriate order an order of default. for the enforcement of such subpoena. (e) Failure to make timely filing. Any failure to obey such order of the The Presiding Officer may refuse to court may be punishable as contempt. consider any motion or other pleading, In any case in which the Postal Service report, or response which is not filed in seeks the enforcement of a subpoena a timely fashion.

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§ 962.16 Disqualification of reviewing including his or her findings and deter- official or presiding official. minations. Such decision shall include If a Respondent believes, in good the findings of fact and conclusions of faith, that the Reviewing Official or law which the Presiding Officer relied Presiding Officer should be disqualified upon in determining whether the Re- because of personal bias, or other rea- spondent is liable under 31 U.S.C. 3802, son, the Respondent may file a timely and, if liability is found, shall set forth and sufficient affidavit alleging such the amount of any penalties and as- belief with supporting evidence. If the sessments imposed. Presiding Officer finds that such alle- (b) The Presiding Officer shall gations concerning the Reviewing Offi- promptly send to each party a copy of cial are meritorious, he may direct the his or her initial decision, and a state- Reviewing Official to disqualify him- ment describing the right of any person self and request the appointment of a determined to be liable under 31 U.S.C. new Reviewing Official. Where a Re- 3802, to appeal, in accordance with spondent seeks the disqualification of a § 962.21, the decision of the Presiding Presiding Officer, such Presiding Offi- Officer to the Judicial Officer. cer, may, in his discretion, disqualify (c) Unless the Respondent appeals the himself at any time during the pro- Presiding Officer’s initial decision, ceeding. In the event a Reviewing Offi- such decision, including the findings cial or Presiding Officer withdraws and determinations, is final. from a hearing, the proceeding shall be § 962.21 Appeal of initial decision to stayed until the assignment of a new judicial officer. Reviewing Official or Presiding Officer. (a) Notice of appeal and supporting § 962.17 Ex parte communications. brief. (1) A Respondent may appeal an adverse initial decision by filing, with- Communications between a Presiding in 30 days after the Presiding Officer Officer and a party shall not be made issues an initial decision, a Notice of on any matter in issue unless on notice Appeal with the Recorder. The Judicial and opportunity for all parties to par- Officer may extend the filing period if ticipate. This prohibition does not the Respondent files a request for an apply to procedural matters. A memo- extension within the initial 30-day pe- randum of any communication between riod and demonstrates good cause for the Presiding Officer and a party shall such extension. be transmitted by the Presiding Officer (2) The Respondent’s Notice of Ap- to all parties. peal must be accompanied by a written § 962.18 Post-hearing briefs. brief specifying the Respondent’s exceptions, and any reasons for such ex- Post-hearing briefs and reply briefs ceptions, to the Presiding Officer’s ini- may be submitted upon such terms as tial decision. established by the Presiding Officer at (3) Within 30 days of receiving the the conclusion of the hearing. Respondent’s brief, the Reviewing Offi- cial may file with the Judicial Officer § 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. Presiding Officer orders otherwise. (b) Form of review. (1) Review by the Transcripts or copies of the pro- Judicial Officer will be based entirely ceedings may be obtained by the par- on the record and written submissions. ties at such rates as may be fixed by (2) The Judicial Officer may affirm, contract between the reporter and the reduce, reverse, or remand any penalty Postal Service. or assessment determined by the Pre- siding Officer. § 962.20 Initial decision. (3) The Judicial Officer shall not con- (a) After the conclusion of the hear- sider any objection that was not raised ing, and the receipt of briefs, if any, in the hearing unless the interested from the parties, the Presiding Officer party demonstrates that the failure to shall issue a written initial decision, raise the objection before the Presiding

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Officer was caused by extraordinary corder under paragraph (b) of this sec- circumstances. tion, shall be made through the Re- (4) If any party demonstrates to the viewing Official or designated Postal satisfaction of the Judicial Officer that Service attorney. If a notice of appear- additional evidence not presented at ance by a representative is filed on be- the hearing is material and that there half of a Respondent, pleadings or doc- were reasonable grounds for the failure ument transmittals to, or communica- to present such evidence, the Judicial tions with, the Respondent shall be Officer shall remand the matter to the made through his representative. Presiding Officer for consideration of [52 FR 12904, Apr. 20, 1987, as amended at 63 such additional evidence. FR 66053, Dec. 1, 1998] (c) Decision of judicial officer. (1) The Judicial Officer shall promptly serve § 962.23 Service of notice of hearing, each party to the appeal with a copy of other documents. his decision and a statement describing Unless otherwise specified, service of the right to judicial review under 31 a Notice of Hearing or any other docu- U.S.C. 3805 of any Respondent deter- ment under this part must be effected mined to be liable under 31 U.S.C. 3802. by registered or certified mail, return- (2) The decision of the Judicial Offi- receipt requested, or by personal deliv- cer constitutes final agency action and ery. In the case of personal service, the becomes final and binding on the par- person making service shall, if pos- ties 60 days after it is issued unless a sible, secure from the party or other petition for judicial review is filed. person sought to be served, or his or [52 FR 12904, Apr. 20, 1987, as amended at 67 her agent, a written acknowledgement FR 62179, Oct. 4, 2002] of receipt, showing the date and time of such receipt. If the person upon § 962.22 Form and filing of documents. whom service is made declines to ac- (a) Every pleading filed in a pro- knowledge receipt, the person effecting ceeding under this part must service shall execute a statement, indi- (1) Contain a caption setting forth cating the time, place and manner of the title of the action, the docket num- service, which shall constitute evi- ber (after assignment by the Recorder), dence of service. and a designation of the document (e.g., ‘‘Motion to Quash Subpoena’’); § 962.24 Computation of time. (2) Contain the name, address, and (a) In computing any period of time telephone number of the party or other provided for by this part, or any order person on whose behalf the paper was issued pursuant to this part, the time filed, or the name, address and tele- begins with the day following the act, phone number of the representative event, or default, and includes the last who prepared such paper; and day of the period, unless it is a Satur- (3) Be signed by the party or other day, Sunday, or legal holiday observed person submitting the document, or by by the Federal Government, in which such party’s or person’s representative. event it includes the next business day. (b) The original and three copies of (b) When the applicable period of all pleadings and documents in a pro- time is less than seven days, inter- ceeding conducted under this part shall mediate Saturdays, Sundays, and legal be filed with the Recorder, Judicial Of- holidays observed by the Federal Gov- ficer Department, United States Postal ernment shall be excluded from the Service, 2101 Wilson Boulevard, Suite computation. 600, Arlington, VA 22201–3078. Normal Recorder business hours are between § 962.25 Continuances and extensions. 8:15 a.m. and 4:45 p.m., eastern standard Continuances and extensions may be or daylight saving time. The Recorder granted under these rules for good will transmit a copy of each document cause shown. filed to the other party, and the original to the Presiding Officer. § 962.26 Settlement. (c) Pleadings or document transmit- (a) Either party may make offers of tals to, or communications with, the settlement or proposals of adjustment Postal Service, other than to the Re- at any time.

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(b) The Reviewing Official has the ex- 963.19 Appeal. clusive authority to compromise or 963.20 Final agency decision. settle any allegations or determina- 963.21 Official record. tions of liability under 31 U.S.C. 3802 963.22 Public information. without the consent of the Presiding AUTHORITY: 39 U.S.C. 204, 401, 3008. Officer, except during the pendency of an appeal to the appropriate United SOURCE: 52 FR 18912, May 20, 1987, unless States district court pursuant to 31 otherwise noted. U.S.C. 3805 or during the pendency of an action to collect any penalties or § 963.1 Authority for the rules. assessments pursuant to 31 U.S.C. 3806. These rules of practice are issued by (c) The Attorney General has the ex- the Judicial Officer of the U.S. Postal clusive authority to compromise or Service pursuant to authority dele- settle any penalty or assessment the gated by the Postmaster General (39 determination of which is the subject CFR 226.2(e)(1)). of a pending petition for judicial review, or a pending action to recover [52 FR 18912, May 20, 1987, as amended at 59 such penalty or assessment. FR 10751, Mar. 8, 1994] (d) The Reviewing Official may rec- § 963.2 Scope of the rules. ommend settlement terms to the At- torney General, as appropriate. These rules of practice are applicable to cases in which the Prohibitory Order [59 FR 51860, Oct. 13, 1994] Processing Center Manager (herein- § 962.27 Limitations. after, ‘‘Manager’’) has issued a complaint, pursuant to 39 U.S.C. 3008(d), al- A hearing under this part concerning leging violation of a prohibitory order, a claim or statement allegedly made, and in which the alleged violator has presented, or submitted in violation of petitioned for a hearing in the matter. 31 U.S.C. 3802 shall be commenced with- As provided in 39 U.S.C. 3008(h), sub- in six years after the date on which chapter II of chapter 5 (relating to ad- such claim or statement is made, pre- ministrative procedure) and chapter 7 sented, or submitted. (relating to judicial review) of part I of title 5, U.S.C., do not apply to the hear- PART 963—RULES OF PRACTICE IN ings authorized by 39 U.S.C. 3008(d). PROCEEDINGS RELATIVE TO VIO- [52 FR 18912, May 20, 1987, as amended at 59 LATIONS OF THE PANDERING AD- FR 10751, Mar. 8, 1994, 62 FR 4459, Jan. 30, VERTISEMENTS STATUTE, 39 U.S.C. 1997] 3008 § 963.3 Petition; notice of hearing; an- Sec. swer; filing and copies of docu- 963.1 Authority for the rules. ments; summary judgment. 963.2 Scope of the rules. (a) Petition. Anyone against whom a 963.3 Petition; notice of hearing; answer; filing and copies of documents; summary complaint has been issued pursuant to judgment. 39 U.S.C 3008(d) may submit to the 963.4 Presiding Officer. Manager a petition for hearing on the 963.5 Appearances. alleged violation. The petition must be 963.6 Computation of time. in writing, signed by the petitioner or 963.7 Location of hearing. his or her attorney, and filed with the 963.8 Change of place of hearing. Manager on or before the 15th day after 963.9 Election as to hearing. 963.10 Continuances and extensions. receipt of the complaint. The petition 963.11 Default. shall state the reasons why the peti- 963.12 Settlement agreements. tioner believes the complaint to be er- 963.13 Subpoenas and witness fees not au- roneous. No petition received after the thorized. 15th day will be considered to have 963.14 Discovery. been filed on time, unless it was duly 963.15 Evidence. 963.16 Transcript. sent to the Manager via certified mail, 963.17 Proposed findings of fact and conclu- deposited in the U.S. mail on or before sions of law. the 15th day. The Manager will forward 963.18 Initial decision. each timely petition to the Recorder,

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Judicial Officer Department, U.S. Post- (b) The presiding officer has author- al Service, 2101 Wilson Boulevard, ity to: Suite 600, Arlington, VA 22201–3078. (1) Take such action as may be nec- (b) Notice of hearing. Upon receiving a essary properly to preside over the pro- petition, the Recorder shall schedule a ceeding and render decision therein; hearing for a date not later than 30 (2) Render an initial decision, if the days after the date of receipt, issue and presiding officer is not the Judicial Of- send a notice of hearing to the parties, ficer, which becomes the final agency and send a copy of the petition to the decision unless a timely appeal is General Counsel of the U.S. Postal taken; the Judicial Officer may issue a Service. tentative or a final decision. (c) Answer. The General Counsel shall [52 FR 18912, May 20, 1987, as amended at 62 file with the Recorder an answer to the FR 4459, Jan. 30, 1997] petition within 15 days after the date of receiving a copy thereof. A certified § 963.5 Appearances. copy of the material documents from (a) Petitioner. A petitioner may ap- the Manager’s case file (i.e., of the PS pear and be heard in person or by at- Forms 1500, Application for Listing and/ torney. An attorney may practice be- or Prohibitory Order, 2152, Prohibitory fore the Postal Service in accordance Order, and 2153, Complaint, underlying with applicable rules issued by the Ju- mail pieces, and pertinent return re- dicial Officer (see Part 951 of this chap- ceipts) shall be appended to the answer. ter). When a petitioner is represented (d) Filing and copies of documents. by an attorney, all pleadings and other With the exception of the initial peti- papers to be served on petitioner after tion, all documents shall be filed with entry of the attorney’s appearance the Recorder in triplicate at the ad- shall be mailed to the attorney. A peti- dress set forth above. The Recorder tioner must promptly file notice of any shall promptly provide copies to the change of attorney. other party to the proceeding and to (b) Postal Service. The Postal Service the presiding officer. will be represented by its General (e) Summary Judgment. Upon motion Counsel or any attorney designated by of either the General Counsel or the pe- the General Counsel. titioner, or on his or her own initiative, the presiding officer may find § 963.6 Computation of time. that the petition and answer present no A designated period of time under genuine and material issues of fact re- these rules means calendar days, ex- quiring an evidentiary hearing, and cludes the day the period begins, and thereupon may render an initial deci- includes the last day of the period un- sion upholding or dismissing the com- less the last day is a Saturday, Sunday, plaint. The initial decision shall be- or legal holiday, in which case the pe- come the final agency decision if a riod runs until the close of business on timely appeal is not taken. the next business day. [52 FR 18912, May 20, 1987; 52 FR 20599, June 2, 1987, as amended at 59 FR 10752, Mar. 8, § 963.7 Location of hearing. 1994; 62 FR 4459, Jan. 30, 1997; 63 FR 66053, Hearings are held at 2101 Wilson Bou- Dec. 1, 1998] levard, Suite 600, Arlington, VA 22201– § 963.4 Presiding Officer. 3078, or other locations designated by the presiding officer. (a) The presiding officer shall be an Administrative Law Judge or an Ad- [63 FR 66053, Dec. 1, 1998] ministrative Judge qualified in accordance with law. The Judicial Officer as- § 963.8 Change of place of hearing. signs cases under this part. Judicial Of- Not later than the date fixed for the ficer includes Associate Judicial Offi- filing of the answer, a party may file a cer upon delegation thereto. The Judi- request that a hearing be held to re- cial Officer may, on his or her own ini- ceive evidence in his or her behalf at a tiative or for good cause found, preside place other than that designated for at the reception of evidence. hearing in the notice. The party shall

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support his or her request with a state- § 963.13 Subpoenas and witness fees ment outlining: not authorized. (a) The evidence to be offered in such The Postal Service is not authorized place; to issue subpoenas requiring the at- (b) The names and addresses of the tendance or testimony of witnesses, witnesses who will testify; nor to pay fees and expenses for a peti- (c) The reasons why such evidence tioner’s witnesses or for depositions re- cannot be produced at Arlington, VA. quested by a petitioner. The presiding officer shall consider the § 963.14 Discovery. convenience and necessity of the parties and the relevance of the evidence Discovery is to be conducted on a voluntary basis to the extent possible. to be offered. The presiding officer may, upon appli- [52 FR 18912, May 20, 1987, as amended at 62 cation of either party, order such dis- FR 4459, Jan. 30, 1997; 63 FR 66053, Dec. 1, covery as he or she deems reasonable 1998] and necessary. Discovery may include one or more of the following: produc- § 963.9 Election as to hearing. tion of documents, requests for admis- If both parties elect, an oral hearing sions, interrogatories, depositions, and may be waived and the matter sub- witness lists. The presiding officer will mitted for decision on the basis of the establish the terms upon which re- petition and answer, and of any docu- quested discovery will be allowed. mentary evidence or briefs requested [52 FR 18912, May 20, 1987, as amended at 62 by the presiding officer. The written FR 4459, Jan. 30, 1997] election to waive oral hearing must be received by the Recorder no later than § 963.15 Evidence. 10 days prior to the scheduled hearing (a) In general, admissibility will date. hinge on relevancy and materiality. However, relevant evidence may be ex- § 963.10 Continuances and extensions. cluded if its probative value is substan- Continuances and extensions will be tially outweighed by the danger of un- granted by the presiding officer for fair prejudice, or by considerations of good cause shown. undue delay, waste of time, or needless presentation of cumulative evidence. § 963.11 Default. (b) Testimony shall be given under 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- ice. Any party desiring a copy of the [52 FR 18912, May 20, 1987, as amended at 62 transcript shall order it from the con- FR 4459, Jan. 30, 1997] tract reporter in a timely manner to avoid delay in filing briefs. § 963.12 Settlement agreements. 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 (a) Each party who participates in proceeding. the hearing may, unless the presiding

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officer orders otherwise, submit pro- the final agency decision which will be posed findings of fact, conclusions of served upon the parties. If the decision law, orders, and supporting reasons, ei- is that the Postal Service’s prohibitory ther in writing or orally at the discre- order was violated, the Recorder shall tion of the presiding officer. Unless provide a certified copy of the record given orally, the date set for filing of to the General Counsel for use in seek- proposed findings of fact, conclusions ing court enforcement of the order. of law, orders, and supporting reasons shall be within 15 days after the deliv- § 963.21 Official record. ery of the official transcript to the Re- The transcript of testimony together corder, who shall notify both parties of with all pleadings, orders, exhibits, the date of its receipt. The filing date briefs, and other documents filed in the for proposed findings of fact, conclu- proceeding constitute the official sions of law, orders, and supporting record of the proceeding. reasons shall be the same for both parties. If not submitted by such date, un- § 963.22 Public information. less extension of time for the filing The Librarian of the Postal Service thereof is granted, they will not be in- maintains for public inspection in the cluded in the record or given consider- Library copies of all initital, tentative, ation. and final agency decisions and orders. (b) Except when presented orally be- The Recorder maintains the complete fore the close of the hearing, proposed official record of every proceeding. findings of fact shall be set forth in serially numbered paragraphs and shall [52 FR 18912, May 20, 1987, as amended at 63 state with particularity all evidentiary FR 66053, Dec. 1, 1998] facts in the record with appropriate citations to the transcript or exhibits PART 964—RULES OF PRACTICE supporting the proposed findings. Each GOVERNING DISPOSITION OF proposed conclusion shall be stated MAIL WITHHELD FROM DELIVERY separately. PURSUANT TO 39 U.S.C. 3003, [52 FR 18912, May 20, 1987; 52 FR 20599, June 3004 2, 1987] Sec. § 963.18 Initial decision. 964.1 Authority for rules. Unless given orally at the conclusion 964.2 Scope of rules. of the hearing, the presiding officer 964.3 Customer petitions; notice of hearing; shall render an initial decision as expe- answer; summary judgment. 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. clusions, if any. The initial decision be- 964.8 Subpoenas and witness fees not au- comes the final agency decision if a thorized. timely appeal is not taken. 964.9 Discovery; interrogatories; admission of facts; production; and inspection of § 963.19 Appeal. documents. 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. tial or tentative decision unless addi- 964.14 Proposed findings of fact and conclu- tional time is granted. A reply brief sions of law. may be filed within 15 days after the 964.15 Decisions. receipt of the appeal brief by the op- 964.16 Appeal. 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. The Judicial Officer, or by delegation 964.23 Ex Parte communications. the Associate Judicial Officer, renders AUTHORITY: 39 U.S.C. 204, 401, 3003, 3004.

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SOURCE: 52 FR 36763, Oct. 1, 1987, unless issuance of a final order pursuant to otherwise noted. § 964.19. Such referral shall contain a statement of the basis for the deten- § 964.1 Authority for rules. tion, evidence that the notice of the de- These rules of practice are issued by tention and the addressee’s right to pe- the Judicial Officer of the United tition for review under this part were States Postal Service pursuant to au- served on the addressee in person or by thority delegated by the Postmaster mailing a copy to the address to which General (39 CFR 224.1(c)(4)). the detained mail is directed, the date [52 FR 36763, Oct. 1, 1987, as amended at 67 FR of such service, and a copy of the pro- 62179, Oct. 4, 2002] posed order sought by the General Counsel. § 964.2 Scope of rules. (b) Notice of hearing. On receipt of the The rules in this part provide for ad- Petition, the Recorder shall schedule a ministrative review of cases in which hearing on a date not later than 28 the Chief Postal Inspector or his dele- days after the date of receipt. A Notice gate, acting pursuant to 39 U.S.C. of Hearing shall be sent to the Peti- 3003(a), has withheld from delivery tioner. A copy of the Notice of Hearing mail which he believes is involved in a and the Petition shall be sent to the scheme described in section 3003(a), and General Counsel of the U.S. Postal cases in which the Chief Postal Inspec- Service. tor or his delegate, acting pursuant to (c) Answer. The General Counsel of 39 U.S.C. 3004, determines that letters the Postal Service shall file an Answer or parcels sent in the mail are ad- to the Petition within 10 days of re- dressed to places not the residence or ceipt of the Petition from the Re- regular business address of the person corder. for whom they are intended to enable (d) Summary judgment. Upon motion the person to escape identification. of either the General Counsel or the Petitioner, or upon his own initiative, [52 FR 36763, Oct. 1, 1987, as amended at 67 FR the presiding officer may find that the 62179, Oct. 4, 2002] Petition and Answer present no mate- § 964.3 Customer petitions; notice of rial issues of fact requiring an evi- hearing; answer; summary judg- dentiary hearing and thereupon may ment. render an initial decision granting or (a) Petition. Any addressee who re- dismissing the Petition. The initial de- ceives notice from the Chief Postal In- cision shall become the final agency spector or his delegate that his mail decision if a timely appeal is not taken has been withheld pursuant to 39 U.S.C. pursuant to § 964.16 of this part. 3003(a) or 3004 may oppose such action [52 FR 36763, Oct. 1, 1987, as amended at 53 FR by filing with the Judicial Officer a 4849, Feb. 18, 1988; 63 FR 66053, Dec. 1, 1998] written Petition stating the reasons for his or her opposition. The Petition, § 964.4 Hearings. signed by the Petitioner or his attor- Hearings are held at 2101 Wilson Bou- ney, shall be filed by sending the Peti- levard, Suite 600, Arlington, VA 22201– tion via certified mail to the Recorder, 3078, or other locations designated by Judicial Officer Department, U.S. Post- the presiding officer. Not later than 10 al Service, 2101 Wilson Boulevard, days prior to the date fixed for the Suite 600, Arlington, VA 22201–3078. The hearing, a party may file a request Petition must be postmarked within 14 that a hearing be held to receive evi- days of the date upon which the Peti- dence in his behalf at a place other tioner received the notice. The failure than that designated for hearing in the of an addressee who has received notice notice. He shall support his request of withheld mail to file a Petition op- with a statement outlining: posing such action with the Judicial (a) The evidence to be offered in such Officer shall constitute a waiver of place; hearing and further procedural steps by (b) The names and addresses of the the addressee. The General Counsel of witnesses who will testify; and the Postal Service shall thereupon file (c) The reasons why such evidence the matter with the Judicial Officer for cannot be produced at Arlington, VA.

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The presiding officer shall give con- (6) Require the filing of briefs or sideration to the convenience and ne- memoranda of law on any matter upon cessity of the parties and the relevance which he is required to rule; of the evidence to be offered (7) Order prehearing conferences for the purpose of the settlement or sim- [52 FR 36763, Oct. 1, 1987, as amended at 63 FR plification of issues by the parties or 66053, Dec. 1, 1998] for any other purpose he believes will § 964.5 Election as to hearing. facilitate the processing of the proceeding; If both parties elect, they may waive (8) Order the proceeding reopened at an oral hearing and submit the matter any time prior to his decision for the for decision on the basis of the Petition receipt of additional evidence; and Answer, subject to the authority of (9) Render an initial decision, which the presiding officer to require the par- becomes the final agency decision un- ties to furnish such further evidence or less a timely appeal is taken: The Judi- such briefs as necessary. The request to cial Officer may issue a tentative or a waive oral hearing should be filed not final decision; later than 10 days prior to the date set (10) Rule upon applications and re- for hearing. quests filed under § 964.9 of this part.

§ 964.6 Default. § 964.8 Subpoenas and witness fees not authorized. If a Petitioner fails to appear at the hearing without notice or without ade- The Postal Service is not authorized quate cause the presiding officer may to issue subpoenas requiring the at- issue an order dismissing the Petition tendance or testimony of witnesses, and refer the matter to the Judicial Of- nor to pay fees and expenses for a Peti- ficer for issuance of the order provided tioner’s witnesses or for depositions re- for under § 964.19. An order of dismissal quested by a Petitioner. issued under this section may be ap- § 964.9 Discovery; interrogatories; ad- pealed to the Judicial Officer within 10 mission of facts; production and in- days from the date of the order. spection of documents. [52 FR 36763, Oct. 1, 1987, as amended at 53 FR (a) General policy and protective orders. 4849, Feb. 18, 1988] The parties are encouraged to engage in voluntary discovery procedures. In § 964.7 Presiding officers. connection with any discovery proce- (a) The presiding officer shall be an dure permitted under this part, the Administrative Law Judge qualified in presiding officer may issue any order accordance with law. The Judicial Offi- which justice requires to protect a cer shall assign cases upon rotation as party or person from annoyance, em- far as practicable. The Judicial Officer barrassment, oppression, or undue bur- may on his own initiative or for good den or expense. Such orders may in- cause shown, preside at the reception clude limitations on the scope, method, of evidence. time and place for discovery, and provisions for protecting confidential infor- (b) The presiding officer has author- mation or documents from unwar- ity to: ranted public disclosure. Each party (1) Administer oaths and affirma- shall bear its own expenses relating to tions; discovery. (2) Examine witnesses; (b) Depositions. (1) After the issuance (3) Rule upon offers of proof, admissi- of a notice of hearing described in bility of evidence and matters of proce- § 964.3 of this part, the parties may mu- dure; tually agree to, or the presiding officer (4) Order any pleadings amended may, upon application of either party upon motion of a party at any time and for good cause shown, order the prior to the close of the hearing; taking of testimony of any person by (5) Maintain discipline and decorum deposition upon oral examination or and exclude from the hearing any per- written interrogatories before any offi- son acting in an indecorous manner; cer authorized to administer oaths at

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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. a party fails to respond shall be deemed admitted. § 964.13 Continuances and extensions. (e) Production and inspection of docu- Continuances and extensions will be ments. Upon motion of any party show- granted by the presiding officer for ing good cause therefor, and upon no- good cause shown. tice, the presiding officer may order the other party to produce and permit § 964.14 Proposed findings of fact and the inspection and copying or conclusions of law. photographing of any designated docu- (a) Each party to a proceeding, ex- ments and or objects, provided that cept one who fails to answer the Peti- such documents and objects are not tion or, having answered, either fails to privileged, their relevance to the cause appear at the hearing or indicates in

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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 (2) A concise abstract or statement of findings of fact shall be set forth in se- the case in briefs on appeal or in sup- rially numbered paragraphs and shall port of exceptions. state with particularity all evidentiary (3) Numbered exceptions to specific facts in the record with appropriate ci- findings and conclusions of fact, con- tations to the transcript or exhibits clusions of law, or recommended orders supporting the proposed finding. Each of the presiding officer in briefs on ap- proposed conclusion shall be separately peal or in support of exceptions. stated. (4) A concise argument clearly set- § 964.15 Decisions. ting forth points of fact and of law relied upon in support of or in opposition (a) Initial decision by Administrative to each exception taken, together with Law Judge. A written initial decision specific references to the parts of the shall be rendered by an Administrative record and the legal or other authori- Law Judge with all due speed. The ini- ties relied upon. tial decision shall include findings and conclusions with the reasons therefor § 964.17 Final agency decision. upon all the material issues of fact or The Judicial Officer renders the final law presented in the record, and the ap- agency decision and order which will be propriate orders or denial thereof. The served upon the parties and upon the initial decision shall become the final postmaster at the office where the mail agency decision unless an appeal is at issue is being held. taken in accordance with § 964.16. (b) Tentative or final decision by the [52 FR 36763, Oct. 1, 1987, as amended at 53 FR Judicial Officer. When the Judicial Offi- 4849, Feb. 18, 1988] cer presides at the hearing he shall issue a final or a tentative decision. § 964.18 Compromise and informal dis- Such decision shall include findings position. and conclusions with the reasons there- Nothing in these rules precludes the for upon all the material issues of fact compromise, settlement, and informal or law presented in the record, and the disposition of proceedings initiated appropriate orders or denial thereof. under these rules at any time prior to

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the issuance of the final agency deci- to proceedings under these rules of sion. practice.

§ 964.19 Orders. PART 965—RULES OF PRACTICE IN If an order is issued by the Judicial PROCEEDINGS RELATIVE TO MAIL Officer which prohibits delivery of mail DISPUTES to a Petitioner it shall be incorporated in the record of the proceeding. The Sec. Recorder shall cause notice of the 965.1 Authority for rules. order to be published in the Postal Bul- 965.2 Scope of rules. letin and cause the order to be trans- 965.3 Notice to parties. mitted to such postmasters and other 965.4 Presiding officers. officers and employees of the Postal 965.5 Submittals by parties. Service as may be required to place the 965.6 Comments by parties. order into effect. 965.7 Default. 965.8 Hearings. [52 FR 36763, Oct. 1, 1987, as amended at 53 FR 965.9 Evidence. 4849, Feb. 18, 1988] 965.10 Transcript. 965.11 Initial decision. § 964.20 Modification or revocation of 965.12 Appeal. orders. 965.13 Compromise and informal disposition. A party against whom an order or or- 965.14 Public information. ders have been issued may file an appli- AUTHORITY: 39 U.S.C. 204, 401. cation for modification or revocation SOURCE: 52 FR 29012, Aug. 5, 1987, unless thereof. The Recorder shall transmit a otherwise noted. copy of the application to the General Counsel, who shall file a written reply § 965.1 Authority for rules. within 10 days after receipt or such These rules of practice are issued by other period as the Judicial Officer the Judicial Officer of the U.S. Postal may fix. A copy of the reply shall be Service pursuant to authority dele- sent to the applicant by the Recorder. gated by the Postmaster General. (39 Thereafter an order granting or deny- CFR 224.1(c)(4)). ing such application will be issued by the Judicial Officer. § 965.2 Scope of rules. § 964.21 Official record. The rules in this part shall be applicable to mail dispute cases forwarded The transcript of testimony together to the Judicial Officer Department by with all pleadings, orders, exhibits, the chief field counsel pursuant to briefs, and other documents filed in the Postal Operations Manual section proceeding constitute the official 616.21. record of the proceeding. [52 FR 29012, Aug. 5, 1987, as amended at 63 § 964.22 Public information. FR 66053, Dec. 1, 1998] The Librarian of the Postal Service § 965.3 Notice to parties. maintains for public inspection in the Upon receipt of a mail dispute case Library copies of all initial, tentative, from the chief field counsel, the Re- and final agency decisions and orders. corder, Judicial Officer Department, The Recorder maintains the complete United States Postal Service, 2101 Wil- official record of every proceeding. son Boulevard, Suite 600, Arlington VA [52 FR 36763, Oct. 1, 1987, as amended at 63 FR 22201–3078, will send a notice of dock- 66053, Dec. 1, 1998] eting and submittal due date to the parties together with a copy of these § 964.23 Ex parte communications. rules. The provisions of 5 U.S.C. 551(14), [52 FR 29012, Aug. 5, 1987, as amended at 63 556(d), and 557(d) prohibiting ex parte FR 66053, Dec. 1, 1998; 67 FR 62179, Oct. 4, communications are made applicable 2002]

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§ 965.4 Presiding officers. initiative if there is a dispute as to a material issue of fact which can only (a) The presiding officer shall be an be resolved by examination of wit- Administrative Law Judge or an Ad- nesses. ministrative Judge qualified in accordance with law. The Judicial Officer as- (b) Hearings are held at 2101 Wilson signs cases under this part. Judicial Of- Boulevard, Suite 600, Arlington, VA ficer includes Associate Judicial Offi- 22201–3078, or such other place as may cer upon delegation thereto. The Judi- be designated by the presiding officer. cial Officer may, on his own initiative [52 FR 29012, Aug. 5, 1987, as amended at 63 or for good cause found, preside at the FR 66053, Dec. 1, 1998] reception of evidence. (b) The presiding officer has author- § 965.9 Evidence. ity to: (a) In general, admissibility will (1) Take such action as may be nec- hinge on relevancy and materiality. essary to preside properly over the pro- However, relevant evidence may be exceeding and render decision therein; cluded if its probative value is substan- (2) Render an initial decision, if the tially outweighed by the danger of un- presiding officer is not the Judicial Of- fair prejudice, or by considerations of ficer, which becomes the final agency undue delay, waste of time, or needless decision unless a timely appeal is presentation of cumulative evidence. taken; the Judicial Officer may issue a (b) Testimony shall be given under tentative or a final decision. oath or affirmation and witnesses are subject to cross-examination. § 965.5 Submittals by parties. (c) Agreed statements to fact are en- Within 15 days after receipt of the couraged and may be received in evi- Recorder’s notice, each party shall file dence. with the Recorder a sworn statement of the facts supporting its claim to re- § 965.10 Transcript. ceipt of the mail together with a copy Testimony and argument at hearings of each document on which it relies in shall be reported verbatim, unless the making such claim. All such submit- presiding officer otherwise orders. tals shall be in duplicate. Upon receipt Transcripts or copies of the proof such evidence, the Recorder shall ceedings are supplied to the parties at send a copy of each submittal to the such rate as may be fixed by contract opposing party. between the reporter and Postal Serv- ice. § 965.6 Comments by parties. Within 10 days of receipt of the other § 965.11 Initial decision. party’s evidence, each party may file The presiding officer shall render an with the Recorder a statement setting initial decision in writing, based on the forth in detail its disagreements, if record, as expeditiously as possible, but any, with its opponent’s statement and to the extent practicable within 10 documents. The Recorder will send to working days of closing of the record. each party a copy of the other party’s The decision will be brief, containing comments. summary findings of fact, conclusions of law, and reasons therefor. If there § 965.7 Default. has been a hearing the presiding officer A party who fails to file the sub- may in his discretion render an oral de- mittal required by § 965.5 may be held cision. A typed copy of such oral deci- in default and the presiding officer may sion will subsequently be furnished to issue an initial decision that mail be the parties to establish the date for delivered to the other party. commencement of time for requesting review of the initial decision. § 965.8 Hearings. (a) In the discretion of the presiding § 965.12 Appeal. officer an oral hearing may be granted The initial or tentative decision will at the request of either, or both, par- become final 10 days after its issuance ties or on the presiding officer’s own and receipt by the parties unless the

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Judicial Officer, or by delegation the § 966.1 Authority for rules. Associate Judicial Officer, in his sole These rules of practice are issued by discretion, grants review upon appeal the Judicial Officer pursuant to au- of either party filed within that period, thority delegated by the Postmaster or on his own motion within that pe- General. riod. If an appeal is denied, the initial or tentative decision becomes the final § 966.2 Scope of rules. agency decision on the issuance of such The rules in this part apply to any denial. The judicial Officer’s decision petition filed by a former postal em- on appeal is the final agency decision ployee: with no further agency review or ap- (a) To challenge the Postal Service’s peal rights. determination that he or she is liable to the Postal Service for a debt in- § 965.13 Compromise and informal disposition. curred in connection with his or her Postal Service employment; and/or Nothing in these rules precludes the (b) To challenge the administrative compromise, settlement, and informal offset schedule proposed by the Postal disposition of proceedings initiated Service for collecting any such debt. under these rules at any time prior to the issuance of the final agency deci- § 966.3 Definitions. sion. (a) Administrative offset refers to the withholding of money payable by the § 965.14 Public Information. Postal Service or the United States to, The Librarian of the Postal Service or held by the Postal Service or the maintains for public inspection in the United States for, a former employee Library copies of all initial, tenatative, in order to satisfy a debt determined to and final agency decisions and orders. be owed by the former employee to the The Recorder maintains the complete Postal Service. official record of every proceeding. (b) Debt refers to any amount deter- [52 FR 29012, Aug. 5, 1987, as amended at 63 mined by the Postal Service to be owed FR 66053, Dec. 1, 1998] to the Postal Service by a former employee. (c) Former employee refers to an indi- PART 966—RULES OF PRACTICE IN vidual whose employment with the PROCEEDINGS RELATIVE TO AD- Postal Service has ceased. An em- MINISTRATIVE OFFSETS INITIATED ployee is considered formally separated AGAINST FORMER EMPLOYEES from the Postal Service rolls as of OF THE POSTAL SERVICE close of business on the effective date of his or her separation. Postal Service Sec. Form 50. 966.1 Authority for rules. (d) General Counsel refers to the Gen- 966.2 Scope of rules. eral Counsel of the Postal Service, and 966.3 Definitions. includes a designated representative. 966.4 Petition for a hearing and supplement (e) Hearing Official refers to an Ad- to petition. ministrative Law Judge qualified to 966.5 Effect of petition filing. hear cases under the Administrative 966.6 Filing, docketing and serving documents; computation of time; representa- Procedure Act, an Administrative tion of parties. Judge appointed under the Contract 966.7 Answer to petition. Disputes Act of 1978, or any other 966.8 Authority and responsibilities of Hear- qualified person licensed to practice ing Official or Judicial Officer. law designated by the Judicial Officer 966.9 Opportunity for oral hearing. to preside over a hearing conducted 966.10 Initial decision. pursuant to this part. 966.11 Appeal. (f) Judicial Officer refers to the Judi- 966.12 Waiver of rights. cial Officer, Associate Judicial Officer, 966.13 Ex parte communications. or Acting Judicial Officer of the Postal AUTHORITY: 39 U.S.C. 204, 401, 2601. Service. SOURCE: 62 FR 63279, Nov. 28, 1997, unless (g) Postmaster/Installation Head refers otherwise noted. to the top management official at a

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particular post office or installation (3) He or she has requested and re- when an alleged debt owed by a former ceived reconsideration of the existence employee was incurred, or to that offi- or amount of the alleged debt and/or cial’s successor, or to the department the offset schedule proposed by the head who had general supervisory re- Postal Service. sponsibility for a former employee at (b) Within thirty (30) calendar days Area Offices or National Headquarters after the date of receipt of the Post- when an alleged debt owed by that master/Installation Head’s written de- former employee was incurred, or to cision upon reconsideration, the former that official’s successor. Where the employee must file a written, signed former employee was a Postmaster/In- petition, requesting a written or oral stallation Head, the term refers to the hearing, with the Recorder, Judicial official to whom the Postmaster/Instal- Officer Department, United States lation Head reported when an alleged Postal Service, 2101 Wilson Boulevard, debt owed by that former employee was Suite 600, Arlington, VA 22201–3078. incurred, or to that official’s successor. (c) The petition must include the fol- Where the former employee was in the lowing: Inspection Service, the term refers to the former employee’s immediate su- (1) The words, ‘‘Petition for Review pervisor when an alleged debt owed by Under 39 CFR Part 966’’; that former employee was incurred, or (2) The former employee’s name and to that official’s successor. Where the social security number; former employee was in the Office of (3) The former employee’s home ad- Inspector General, the term refers to dress and telephone number, and any the Inspector General, or to the Inspec- other address and telephone number at tor General’s delegate. which the former employee may be (h) Reconsideration refers to the re- contacted about these proceedings; view of an alleged debt and/or the pro- (4) A statement of the date the posed offset schedule conducted by the former employee received the Post- Postmaster/Installation Head at the re- master/Installation Head’s written de- quest of a former employee alleged to cision upon reconsideration of the al- be indebted to the Postal Service. leged debt, and a copy of the decision; (i) Recorder refers to the Recorder, (5) A statement indicating whether Judicial Officer Department, United the former employee requests an oral States Postal Service, 2101 Wilson Bou- hearing or a decision based solely on levard, Suite 600, Arlington, VA 22201– written submissions; 3078. (6) If the former employee requests [62 FR 63279, Nov. 28, 1997, as amended at 63 an oral hearing, a statement describing FR 66053, Dec. 1, 1998] the evidence he or she will produce which makes an oral hearing nec- § 966.4 Petition for a hearing and sup- essary, including a list of witnesses, plement to petition. with their addresses, whom the former (a) A former employee who is alleged employee expects to call; a summary of to be responsible for a debt to the Post- the testimony the witnesses are ex- al Service may petition for a hearing pected to present; the city requested under this part, provided: for the hearing site, with justification (1) Liability for the debt and/or the for holding the hearing in that city; proposed offset schedule has not been and at least three proposed dates for established under Part 452.3 or Part the hearing at least forty-five (45) days 462.3 of the Employee & Labor Rela- after the filing of the petition; tions Manual; (7) A statement of the grounds upon (2) He or she has received a Notice which the former employee objects to from the Minneapolis Accounting Serv- the Postal Service’s determination of ice Center (or its successor installa- the debt or to the administrative offset tion) informing him or her of the debt schedule proposed by the Postal Serv- and an offset schedule to satisfy the ice for collecting any such debt. This debt and of the right to request recon- statement should identify with reason- sideration by the Postmaster/Installa- able specificity and brevity the facts, tion Head; and evidence, and legal arguments, if any,

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which support the former employee’s transmittals for, or communications position; and with, the Postal Service shall be (8) Copies of all records in the former through its representative, the General employee’s possession which relate to Counsel. If a former employee is rep- the debt and which the former em- resented by an attorney authorized to ployee may enter into the record of the practice law in any of the United hearing. States or the District of Columbia or a (d) The former employee may, if nec- territory of the United States, further essary, file with the Recorder addi- transmissions of documents and other tional information as a supplement to communications with the former em- the petition at any time prior to the ployee shall be made through his or her filing of the answer to the petition attorney rather than directly with the under § 966.7, or at such later time as former employee. permitted by the Hearing Official upon a showing of good cause. § 966.7 Answer to petition. [62 FR 63279, Nov. 28, 1997, as amended at 63 Within thirty (30) days after the date FR 66053, Dec. 1, 1998] of receipt of the petition, the General Counsel shall file an answer to the pe- § 966.5 Effect of petition filing. tition, and attach all available rel- Upon receipt and docketing of the evant records and documents in sup- former employee’s petition, the Re- port of the Postal Service’s claim, or corder will notify the General Counsel the administrative offset schedule pro- that the petition has been filed and posed by the Postal Service for col- that a timely filed petition stays fur- lecting any such claim; a statement of ther collection action. whether the Postal Service concurs in, or objects to, an oral hearing, if the § 966.6 Filing, docketing and serving former employee requests one, with the documents; computation of time; reason(s) for the Postal Service’s objec- representation of parties. tion; a list of witnesses the Postal (a) Filing. All documents required Service intends to call if an oral hear- under this part must be filed by the ing is requested and the request is former employee or the General Coun- granted; a synopsis of the testimony of sel in triplicate with the Recorder. each witness; a statement of concur- (Normal Recorder office business hours rence or objection to the proposed loca- are between 8:15 a.m. and 4:45 p.m., tion and dates for the oral hearing; and eastern standard or daylight saving a statement of the basis for the deter- time as appropriate during the year.) mination of debt or offset schedule if The Recorder will transmit a copy of not contained in the relevant records each document filed to the other party, or documents. If the former employee and the original to the Hearing Offi- files a supplement to the petition, the cial. General Counsel may file any supple- (b) Docketing. The Recorder will mental answer and records to support maintain a docket record of pro- the position of the Postal Service with- ceedings under this part and will assign in twenty (20) calendar days from the each petition a docket number. After date of receipt of the supplement filed notification of the docket number, the with the Recorder. former employee and General Counsel should refer to it on any further filings § 966.8 Authority and responsibilities regarding the petition. of Hearing Official or Judicial Offi- (c) Time computation. A filing period cer. under the rules in this part excludes (a) In processing a case under this the day the period begins, and includes part, the Hearing Official’s authority the last day of the period unless the includes, but is not limited to, the fol- last day is a Saturday, Sunday, or legal lowing: holiday, in which event the period runs (1) Ruling on all offers, motions, or until the close of business on the next requests by the parties; business day. (2) Issuing any notices, orders, or (d) Representation of parties. After the memoranda to the parties concerning filing of the petition, further document the hearing procedures;

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(3) Conducting telephone conferences collecting a former employee’s debt. with the parties to expedite the pro- When the Judicial Officer presides at a ceedings (a memorandum of a tele- hearing he or she shall issue a final or phone conference will be transmitted a tentative decision. to both parties); (b) The Hearing Official shall (4) Determining if an oral hearing is promptly send to each party a copy of necessary, the type of oral hearing that the initial or tentative decision, and a would be appropriate, and setting the statement describing the right of ap- place, date, and time for such hearing; peal to the Judicial Officer in accord- (5) Administering oaths or affirma- ance with § 966.11. tions to witnesses; (6) Conducting the hearing in a man- § 966.11 Appeal. ner to maintain discipline and decorum The initial or tentative decision will while assuring that relevant, reliable, become final and an order to that ef- and probative evidence is elicited on fect will be issued by the Judicial Offi- the issues in dispute, and that irrele- cer thirty (30) days after issuance and vant, immaterial, or repetitious evi- receipt by the parties of the initial or dence is excluded; tentative decision unless the Judicial (7) Establishing the record in the Officer, in his discretion, grants review case; upon appeal by either party, or on his (8) Issuing an initial decision or one own motion. If an appeal is denied, the on remand; and initial or tentative decision becomes (9) Granting, at the request of either the final agency decision upon the party, reasonable time extensions. issuance of such denial. The Judicial (b) The Judicial Officer, in addition Officer’s decision on appeal is the final to possessing such authority as is de- agency decision with no further right scribed elsewhere in this part, shall of appeal within the agency. possess all of the authority and responsibilities of a Hearing Official. § 966.12 Waiver of rights. The Hearing Official may determine § 966.9 Opportunity for oral hearing. the former employee has waived his or An oral hearing generally will be her right to a hearing and administra- held only in those cases which, in the tive offset may be initiated if the opinion of the Hearing Official, cannot former employee: be resolved by a review of the docu- (a) Files a petition for hearing after mentary evidence, such as when the ex- the end of the prescribed thirty (30) day istence, or amount, of a debt turns on period, and fails to demonstrate to the issues of credibility or veracity. An satisfaction of the Hearing Official oral hearing includes an in-person good cause for the delay; hearing, a telephonic hearing, or a (b) Has received notice to appear at hearing by video conference. When the an oral hearing but fails to do so with- Hearing Official determines that an out showing circumstances beyond the oral hearing is not necessary, the deci- former employee’s control; sion shall be based solely on written (c) Fails to file required submissions submissions. or to comply with orders of the Hear- ing Official; or § 966.10 Initial decision. (d) Files a withdrawal of his or her (a) After the receipt of written sub- petition for a hearing with the Re- missions or after the conclusion of the corder. hearing and the receipt of any posthearing briefs, the Hearing Official § 966.13 Ex parte communications. shall issue a written initial decision, Ex parte communications between a including findings of fact and conclu- Hearing Official or his or her staff and sions of law, which the Hearing Official a party shall not be made. This prohi- relied upon in determining whether the bition does not apply to procedural former employee is indebted to the matters. A memorandum of any com- Postal Service, or in upholding or re- munication between the Hearing Offi- vising the administrative offset sched- cial and a party will be transmitted to ule proposed by the Postal Service for both parties.

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SUBCHAPTER A—PERSONNEL

Part Page 3000 Standards of conduct ...... 345 3001 Rules of practice and procedure ...... 347 3002 Organization ...... 469 3003 Privacy Act rules ...... 472 3004 Freedom of information rules ...... 474

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PART 3000—STANDARDS OF agency ethics official. The DAEO shall CONDUCT advise employees as to the applicability and interpretation of laws and Subpart A—General Provisions regulations involving the standards of conduct for employees of the Commis- Sec. sion. The DAEO shall furnish advice to 3000.735–101 Cross-reference to employee employees for the purpose of aiding ethical conduct standards and financial employees in avoiding conflicts of in- disclosure regulations. terest, situations, actions or conduct 3000.735–102 Counseling and advisory services. that may reflect adversely on the Com- 3000.735–103 Financial interests. mission. 3000.735–104 Outside employment. (b) The DAEO shall develop and execute an ethics agency training plan Subpart B—Ex Parte Communications providing for an initial orientation for 3000.735–501 Ex parte communications pro- new employees and annual ethics train- hibited. ing. 3000.735–502 Public record of ex parte communications. § 3000.735–103 Financial interests. APPENDIX A TO PART 3000—CODE OF ETHICS An employee shall not, either di- FOR GOVERNMENT SERVICE rectly or indirectly, have any financial AUTHORITY: 39 U.S.C. 3603; E.O. 12674, 54 FR interest (whether by ownership of any 15159, 3 CFR, 1989 Comp., p. 215, as modified stock, bond, security, or otherwise) in by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., any entity or person whose interests p. 306; 5 CFR parts 2634 and 2635. may be significantly affected by rates SOURCE: 36 FR 5412, Mar. 23, 1971, unless of postage, fees for postage services, otherwise noted. the classification of mail, or the operation of the Postal Service. This para- Subpart A—General Provisions graph does not proscribe interests in an entity or person whose use of the mail SOURCE: 58 FR 42874, Aug. 12, 1993, unless is merely an incidental or a minor fac- otherwise noted. tor in the general conduct of its business. § 3000.735–101 Cross-reference to employee ethical conduct standards [66 FR 32545, June 15, 2001] and financial disclosure regulations. § 3000.735–104 Outside employment. Employees of the Postal Rate Com- (a) An employee shall not engage in mission (Commission) are subject and outside employment or professional should refer to the executive branch- practice, either on a paid or unpaid wide Standards of Ethical Conduct at 5 basis, with or for a company or other CFR part 2635, the Commission regula- person whose interests are signifi- tion at 5 CFR part 5601 which supple- cantly affected by rates of postage, fees ments the executive branch-wide for postal services, the classification of standards, and the executive branch- mail or the operations of Postal Serv- wide financial disclosure regulation at ice. 5 CFR part 2634. (b) An employee who wishes to engage in outside employment either on a § 3000.735–102 Counseling and advi- paid or unpaid basis shall obtain the sory services. prior written approval of the DAEO. A (a) The Chairman of the Commission request for such approval shall be sub- shall appoint the Designated Agency mitted in writing with sufficient de- Ethics Official (DAEO) for the Commis- scription of the employment to enable sion. The DAEO may appoint deputy the DAEO to make an informed deter- ethics officials to assist in carrying out mination that the outside employment the responsibilities of the designated is not prohibited by law or regulation,

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including 5 CFR part 2635 or 5 CFR part the communication; the substance of 5601. the communication; and the relation- (c) An employee who has been as- ship of the communication to a par- signed to a particular matter which af- ticular matter at issue or likely to be- fects the financial interests of a pro- come at issue in contested proceedings spective employer and who is required, before the Commission. When the ex in accordance with 5 CFR 2635.604(a), to parte communication concerns a par- disqualify himself from participation ticular matter at issue in a proceeding in that matter shall, notwithstanding before the Commission, a copy of the the guidance in 5 CFR 2635.604 (b) and report shall be submitted to each party (c), provide notice of disqualification to the proceeding. The report is a pub- to his supervisor upon determining lic record of the Commission and a that he will not participate in the mat- copy thereof shall be available to any ter. member of the public on request. This section does not apply to ex parte com- Subpart B—Ex Parte munications under paragraph 3000.735– Communications 501(b). [36 FR 5412, Mar. 23, 1971, as amended at 38 § 3000.735–501 Ex parte communica- FR 24899, Sept. 11, 1973] tions prohibited. APPENDIX A TO PART 3000—CODE OF Decision-making Commission per- ETHICS FOR GOVERNMENT SERVICE sonnel, as defined in § 3001.7(a), shall not, either in an official or unofficial Resolved by the House of Representatives capacity, participate in any ex parte (the Senate concurring), That it is the sense communication—either oral or of the Congress that the following Code of written—with any person regarding (1) Ethics should be adhered to by all Govern- a particular matter (substantive or ment employees, including office-holders: procedural) at issue in contested pro- CODE OF ETHICS FOR GOVERNMENT SERVICE ceedings before the Commission or (2) Any person in Government service should: the substantive merits of a matter that 1. Put loyalty to the highest moral prin- is likely to become a particular matter ciples and to country above loyalty to per- at issue in contested proceedings before sons, party, or Government department. the Comission. A particular matter is 2. Uphold the Constitution, laws, and legal at issue in contested proceedings before regulations of the United States and of all the Commission when it is a subject of governments therein and never be a party to controversy in a hearing held under 39 their evasion. 3. Give a full day’s labor for a full day’s U.S.C. 3624 or 3661(c). However, this pay; giving to the performance of his duties section does not prohibit participation his earnest effort and best thought. in off-the-record proceedings conducted 4. Seek to find and employ more efficient under regulations adopted by the Com- and economical ways of getting tasks accom- mission for hearings held under 39 plished. U.S.C. 3624 or 3661(c). 5. Never discriminate unfairly by the dis- pensing of special favors or privileges to any- [45 FR 65581, Oct. 3, 1980] one, whether for remuneration or not; and never accept, for himself or his family, fa- § 3000.735–502 Public record of ex vors or benefits under circumstances which parte communications. might be construed by reasonable persons as influencing the performance of his govern- As ex parte communications (either mental duties. oral or written) may occur inadvert- 6. Make no private promises of any kind ently notwithstanding § 3000.735–501, binding upon the duties of office, since a the employee who receives such a com- Government employee has no private word munication, shall—within 2 workdays which can be binding on public duty. after the receipt of such a 7. Engage in no business with the Govern- communication—prepare a written re- ment, either directly or indirectly, which is port concerning the communication. inconsistent with the conscientious performance of his governmental duties. The report shall identify the employee 8. Never use any information coming to and the person or persons who partici- him confidentially in the performance of pated in the ex parte communication; governmental duties as a means for making the circumstances which resulted in private profit.

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9. Expose corruption wherever discovered. 3001.38 Omission of intermediate decisions. 10. Uphold these principles, ever conscious 3001.39 Intermediate decisions. that public office is a public trust. 3001.40 Exceptions to intermediate deci- Passed July 11, 1958. sions. 3001.41 Rulemaking proceedings. PART 3001—RULES OF PRACTICE 3001.42 Public information and requests. AND PROCEDURE 3001.43 Public attendance at Commission meetings. Subpart A—Rules of General Applicability Subpart B—Rules Applicable to Requests Sec. for Changes in Rates or Fees 3001.1 Construction of rules. 3001.2 [Reserved] 3001.51 Applicability. 3001.3 Scope of rules. 3001.52 Filing of formal requests. 3001.4 Method of citing rules. 3001.53 Filing of prepared direct evidence. 3001.5 Definitions. 3001.54 Contents of formal requests. 3001.6 Appearances. 3001.55 Service by the Postal Service. 3001.7 Ex parte communications. 3001.8 No participation by investigative or 3001.56 Failure to comply. prosecuting officers. 3001.57 Market response rate requests for 3001.9 Filing of documents. express mail service—purpose and dura- 3001.10 Form and number of copies of docu- tion of rules. ments. 3001.58 Market response rate requests—data 3001.11 General contents of documents. filing requirements. 3001.12 Service of documents. 3001.59 Market Response Rate Requests–ex- 3001.13 Docket and hearing calendar. pedition of public notice and procedural 3001.14 Consolidation and separation of pro- schedule. ceedings. 3001.60 Express mail market response—rule 3001.15 Computation of time. for decision. 3001.16 Continuances and extensions of time. Subpart C—Rules Applicable to Requests 3001.17 Notice of proceeding. 3001.18 Nature of proceedings. for Establishing or Changing the Mail 3001.19 Notice of prehearing conference or Classification Schedule hearing. 3001.20 Formal intervention. 3001.61 Applicability. 3001.20a Limited participation by persons 3001.62 Filing of formal requests. not parties. 3001.63 Filing of prepared direct evidence. 3001.20b Informal expression of views by 3001.64 Contents of formal requests. persons not parties or limited partici- 3001.65 Service by the Postal Service. pators (commenters). 3001.66 Failure to comply. 3001.21 Motions. 3001.67 Requests involving experimental 3001.22 Requests for waiver. changes. 3001.23 Presiding officers. 3001.67a Requests involving experimental 3001.24 Prehearing conferences. changes—procedures for limitation of 3001.25 Discovery—general policy. 3001.26 Interrogatories for purpose of dis- issues. covery. 3001.67b Requests involving experimental 3001.27 Requests for production of docu- changes—unavailability of data. ments or things for purpose of discovery. 3001.67c Requests involving experimental 3001.28 Requests for admissions for purpose changes—plans for data collection. of discovery. 3001.67d Requests involving experimental 3001.29 Settlement conferences. changes—time limit. 3001.30 Hearings. 3001.68 Text of the Domestic Mail Classi- 3001.31 Evidence. fication Schedule. 3001.31a In camera orders. 3001.69 Expedited minor classification 3001.32 Appeals from rulings of the presiding cases—applicability. officer. 3001.69a Expedited minor classification 3001.33 Depositions. 3001.34 Briefs. cases—filing of formal request and pre- 3001.35 Proposed findings and conclusions. pared direct evidence. 3001.36 Oral argument before the presiding 3001.69b Expedited minor classification or other designated officer. cases—expedition of procedural schedule. 3001.37 Oral argument before the Commis- 3001.69c Expedited minor classification sion. cases—time limits.

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APPENDIX A TO SUBPART C—POSTAL SERVICE 3001.166 Suspension, continuation or termi- RATES AND CHARGES nation of proceeding.

Subpart D—Rules Applicable to Requests Subpart J—Rules for Expedited Review of for Changes in the Nature of Postal Requests for Provisional Service Services Changes of Limited Duration 3001.71 Applicability. 3001.171 Applicability. 3001.72 Filing of formal requests. 3001.172 Filing of formal request and pre- 3001.73 Filing of prepared direct testimony. pared direct evidence. 3001.74 Contents of formal requests. 3001.173 Procedures—expedition of public 3001.75 Service by the Postal Service. notice and procedural schedule. 3001.174 Rule for decision. Subpart E—Rules Applicable to Rate and 3001.175 Data collection and reporting re- Service Complaints quirements. 3001.176 Continuation or termination of pro- 3001.81 Applicability. visional service. 3001.82 Scope and nature of complaints. 3001.83 Contents of complaints. Subpart K—Rules for Use of Multi-Year Test 3001.84 Answers by the Postal Service. Periods 3001.85 Informal procedures. 3001.181 Use of multi-year test period for 3001.86 Proceedings on the record. proposed new services. 3001.87 Commission determinations. 3001.182 Filing of formal request and prepared direct evidence. Subpart F—Rules Applicable to the Filing of Testimony by Intervenors AUTHORITY: 39 U.S.C. 404(b); 3603, 3622–24, 3661, 3662, 3663. 3001.91 Applicability and general policy. SOURCE: 36 FR 396, Jan. 12, 1971, unless oth- 3001.92 Submissions by intervenors. erwise noted. Subpart G—Rules Applicable to the Filing of Periodic Reports by the U.S. Postal Subpart A—Rules of General Service Applicability 3001.101 Applicability and general policy. § 3001.1 Construction of rules. 3001.102 Filing of reports. 3001.103 Filing of reports required by 39 The rules in this part shall be lib- U.S.C. 3663(b). erally construed to secure just and speedy determination of issues. Subpart H—Rules Applicable to Appeals of [38 FR 4327, Feb. 13, 1973] Postal Service Determinations To Close or Consolidate Post Offices § 3001.2 [Reserved] 3001.110 Applicability. § 3001.3 Scope of rules. 3001.111 Initiation of review proceedings. 3001.112 The record on review. The rules of practice in this part are 3001.113 Filing of the record. applicable to proceedings before the 3001.114 Suspension pending review. Postal Rate Commission under the Act, 3001.115 Participant statement or brief. including those which involve a hear- 3001.116 Oral argument. ing on the record before the Commis- 3001.117 Posting of documents by Postal sion or its designated presiding officer. Service for inspection by affected postal They do not preclude the informal dis- patrons. position of any matters coming before Subpart I—Rules for Expedited Review to the Commission not required by stat- Allow Market Tests of Proposed Mail ute to be determined upon notice and Classification Changes hearing. 3001.161 Applicability. § 3001.4 Method of citing rules. 3001.162 Filing of market test proposal and This part shall be referred to as the supporting direct evidence. ‘‘rules of practice.’’ Each section, para- 3001.163 Procedures—expedition of public notice and procedural schedule. graph, or subparagraph shall include 3001.164 Rule for decision. only the numbers and letters to the 3001.165 Data collection and reporting re- right of the decimal point. For exam- quirements. ple, ‘‘3001.24 Prehearing conferences’’

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shall be referred to as ‘‘section 24’’ or (m) Appellant means a person who as ‘‘rule 24.’’ permitted by 39 U.S.C. 404(b) appeals to the Commission a determination of the [65 FR 6539, Feb. 10, 2000] Postal Service to close or consolidate a § 3001.5 Definitions. post office. (n) Commission meeting means the de- (a) Act means the Postal Reorganiza- liberations of at least three Commis- tion Act (84 Stat. 719, title 39, U.S.C.), sioners where such deliberations deter- as amended. mine or result in the joint conduct or (b) Postal Service means the U.S. disposition of official Commission busi- Postal Service established by the Act. ness, but does not include deliberations (c) Commission or Commissioner means, required or permitted by § 3001.43(d) or respectively, the Postal Rate Commis- § 3001.43(e). sion established by the Act or a mem- (o) Ex parte communication means an ber thereof. oral or written communication not on (d) Secretary means the Secretary or the public record with respect to which the Acting Secretary of the Commis- reasonable prior notice to all partici- sion. pants and limited participators is not (e) Presiding officer means the Chair- given, but it shall not include requests man of the Commission in proceedings for status reports on any matter or conducted by the Commission en banc proceeding covered by subchapter II of or the Commissioner or employee of chapter 5 of title 5 or a proceeding con- the Commission designated to preside ducted pursuant to subpart H of this at hearings or conferences. part. (f) Person means an individual, a (p) Domestic Mail Classification Sched- partnership, corporation, trust, unin- ule means the classification schedule, corporated association, public or pri- including schedules of full and phased vate organization, or governmental rates and fees, adopted by the Decision agency. of the Governors of the U.S. Postal (g) Party means the Postal Service, a Service Re Recommended Decision of complainant, an appellant, or a person the Postal Rate Commission Regarding who has intervened in a proceeding be- the Proper Scope and Extent of the fore the Commission. Mail Classification Schedule, issued (h) Participant means any party and April 3, 1979, and any amendments the officer of the Commission who is thereto adopted pursuant to the proce- designated to represent the interests of dures of subchapter III, chapter 36, the general public and, for purposes of title 39 of the U.S.C. §§ 3001.11(e), 3001.12, 3001.21, 3001.23, (q) Office of the Consumer Advocate or 3001.24, 3001.29, 3001.30, 3001.31, and OCA means the officer of the Commis- 3001.32 only, it also means persons who sion designated to represent the inter- are limited participators. ests of the general public in a Commis- (i) Complainant means a person or in- sion proceeding. terested party who as permitted by sec- [36 FR 396, Jan. 12, 1971, as amended at 38 FR tion 3662 of the Act files a complaint 4327, Feb. 13, 1973; 42 FR 8142, Feb. 2, 1977; 42 with the Commission in the form and FR 10992, Feb. 25, 1977; 42 FR 13290, Mar. 10, manner hereinafter prescribed. 1977; 44 FR 26075, May 4, 1979; 58 FR 38976, (j) Hearing means a hearing under July 21, 1993; 65 FR 6539, Feb. 10, 2000] sections 556 and 557 of title 5, U.S.C. (80 Stat. 386), as provided by sections 3624, § 3001.6 Appearances. 3661, and 3662 of the Act. (a) By whom. An individual may ap- (k) Record means the transcript of pear in his/her own behalf; a member of testimony and exhibits, together with a partnership may represent the part- all papers and requests filed in the pro- nership; and an officer may represent a ceeding, which constitutes the exclu- corporation, trust, unincorporated as- sive record for decision. sociation, or governmental agency. A (l) Effective date of an order or notice person may be represented in a pro- issued by the Commission or an officer ceeding by an attorney at law admitted thereof means the date of issuance un- to practice and in good standing before less otherwise specifically provided. the Supreme Court of the United

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States, the highest court of any State from such hearing and for summary or Territory of the United States or suspension for the duration of the hear- the District of Columbia, or the Court ing by the Commission or the presiding of Appeals or the District Court for the officer. District of Columbia. [36 FR 396, Jan. 12, 1971, as amended at 38 FR (b) Authority to act. When an officer 4327, Feb. 13, 1973; 51 FR 8827, Mar. 14, 1986; 58 of any participant or an attorney act- FR 38976, July 21, 1993; 67 FR 67559, Nov. 6, ing in a representative capacity ap- 2002] pears in person, submits a document to the Commission online as a Principal § 3001.7 Ex parte communications. Account Holder, or signs a paper filed (a) Definitions—(1) Decision-making with the Commission, his/her personal Commission personnel. Subject to the ex- appearance, online submission, or sig- ception stated in paragraph (a)(2)(ii) of nature, shall constitute a representa- this section, the following categories of tion to the Commission that he/she is persons are designated ‘‘decision-mak- authorized to represent the particular ing Commission personnel’’: participant in whose behalf he/she acts. (i) The Commissioners and their per- Any person appearing before or sonal office staffs; transacting business with the Commis- sion in a representative capacity may (ii) The General Counsel and his/her be required by the Commission or the staff; presiding officer to file evidence of his/ (iii) The Director of the Office of her authority to act in such capacity. Rates Analysis and Planning and his/ (c) Notice of appearance and with- her staff. drawal of appearance. An individual in- (iv) Any other employee who may tending to appear before the Commis- reasonably be expected to be involved sion or its presiding officer in a rep- in the decisional process. resentative capacity for a participant (2) Non-decision-making Commission in a proceeding shall file with the Com- personnel. The following categories of mission a notice of appearance in the persons are designated ‘‘non-decision- form prescribed by the Secretary un- making Commission personnel’’; less that individual is named in an ini- (i) All Commission personnel other tial filing of the participant whom he/ than decision-making Commission per- she represents as a person to whom sonnel; communications from the Commission (ii) Decision-making Commission in regard to the filing are to be ad- personnel not participating in the dressed. A person whose authority to decisional process owing to the prohibi- represent a participant in a specific tions of § 3001.8 or 39 CFR 3000.735, Sub- Commission proceeding has been ter- part C. minated shall file a timely notice of (b) Prohibition. In any agency pro- withdrawal of appearance with the ceeding that is required to be con- Commission. ducted in accordance with section 556 (d) Standards of conduct. Individuals of Title 5 or a proceeding conducted practicing before the Commission shall pursuant to Subpart H of this part, ex- conform to the standards of ethical cept to the extent required for the dis- conduct required of practitioners in the position of ex parte matters as author- courts of the United States. ized by law: (e) Disqualification and suspension. (1) Interested persons outside the After hearing, the Com ission may dis- Commission and non-decision-making qualify and deny, temporarily or per- Commission personnel shall not make manently, the privilege of appearing or knowingly cause to be made to any and practicing before it in any way to Commission decision-making personnel any individual who is found not to pos- ex parte communications relevant to sess the requisite qualifications, or to the merits of the proceeding; have engaged in unethical or improper (2) Commission decision-making per- professional conduct. Contumacious sonnel shall not make or knowingly conduct at any hearing before the Com- cause to be made to any interested permission or its presiding officer shall be son outside the Commission or to non- ground for exclusion of any individual decision-making Commission personnel

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ex parte communications relevant to (d) Violations of ex parte rules. (1) the merits of the proceeding; Upon notice of a communication know- (3) Commission decision-making per- ingly made or knowingly caused to be sonnel who receive ex parte commu- made by a participant in violation of nications relevant to the merits of the paragraph (b) of this section, the Com- proceeding shall decline to listen to mission or presiding officer at the such communications and explain that hearing may, to the extent consistent the matter is pending for determina- with the interests of justice and the tion. Any recipient thereof shall advise policy of the underlying statutes, re- the communicator that he/she will not quire the participant to show cause consider the communication and shall why his/her claim or interest in the promptly and fully inform the Commis- proceeding should not be dismissed, de- sion in writing of the substance of and nied, disregarded, or otherwise ad- the circumstances attending the com- versely affected on account of such vio- munication, so that the Commission lation. will be able to take appropriate action. (2) The Commission may, to the extent consistent with the interests of (4) Commission decision-making per- justice and the policy of the underlying sonnel who receive, or who make or statutes administered by the Commis- knowingly cause to be made, commu- sion, consider a violation of paragraph nications prohibited by this paragraph (b) of this section sufficient grounds for shall place on the public record of the a decision adverse to a party who has proceeding: knowingly committed such violation or (i) All such written communications; knowingly caused such violation to (ii) Memoranda stating the substance occur. of all such oral communications; and (iii) All written responses, and [45 FR 65580, Oct. 3, 1980, as amended at 58 FR 38976, July 21, 1993; 62 FR 45530, Aug. 28, 1997; memoranda stating the substance of all 65 FR 6539, Feb. 10, 2000] oral responses, to the materials described in paragraphs (b)(4)(i) and § 3001.8 No participation by investiga- (b)(4)(ii) of this section. tive or prosecuting officers. (5) Requests for an opportunity to In any proceeding noticed pursuant rebut, on the record, any facts or con- to § 3001.17, no officer, employee or tentions contained in an ex parte com- agent of the Commission who appears munication which have been placed on in the hearing in a proceeding before the public record of the proceeding pur- the Commission as an attorney or wit- suant to paragraph (b)(4) of this section ness or who actively participates in the may be filed in writing with the Com- preparation of evidence or argument mission. The Commission will grant presented by such persons, shall par- such requests only where it determines ticipate or advise as to the inter- that the dictates of fairness so require. mediate decision or Commission deci- Generally, in lieu of actually receiving sion in that proceeding except as a wit- rebuttal material, the Commission will ness or counsel in public proceedings. direct that the alleged factual assertion and the proposed rebuttal be dis- § 3001.9 Filing of documents. regarded in arriving at a decision. (a) Filing with the Commission. The fil- (c) Applicability. (1) The prohibitions ing of each written document required of paragraph (b) of this section shall or authorized by these rules or any ap- apply beginning at the time at which a plicable statute, rule, regulation, or proceeding is noticed for hearing or ap- order of the Commission, or by direc- peal unless the person responsible for tion of the presiding officer shall be the communication has knowledge that made using the Internet (Filing Online) it will be noticed, in which case the pursuant to § 3001.10(a) at the Commis- prohibitions shall apply beginning at sion’s Web site http://www.prc.gov, un- the time of his/her acquisition of such less a waiver is obtained. If a waiver is knowledge. obtained, a hardcopy document may be (2) Paragraph (b) of this section does filed either by mailing or by hand de- not constitute authority to withhold livery to the Office of the Secretary, information from Congress. Postal Rate Commission, 1333 H Street,

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NW., Suite 300, Washington, DC 20268– person submitting the filing, indi- 0001 during regular business hours on a cating the reason(s) for rejection. Ac- date no later than that specified for ceptance for filing shall not waive any such filing. failure to comply with this part, and (b) Account holder. In order for a doc- such failure may be cause for subse- ument to be accepted using Filing On- quently striking all or any part of any line, it must be submitted to the Com- document. mission by a principal account holder (e) Account holder exemptions. Notices or an agent account holder (Filing On- of intervention and comments solicited line account holder). The authority of by the Commission may be filed under the principal account holder to rep- temporary Filing Online accounts. resent the participant on whose behalf Temporary Filing Online accounts may the document is filed must be valid and be obtained without meeting all of the current, in conformance with § 3001.6. requirements of paragraphs (b) and (c) The authority of an agent account of this section, and the subscription re- holder to submit documents for a prin- quirements of § 11. Other categories of cipal account holder must be valid and documents may be filed under tem- current. A principal account holder porary Filing Online accounts under must promptly inform the Secretary of extraordinary circumstances, for good any change in his/her authority to rep- cause shown. resent participants in a proceeding or any change in the authority delegated [67 FR 67559, Nov. 6, 2002, as amended at 68 FR 47, Jan. 2, 2003] to an agent account holder to submit documents on his/her behalf. § 3001.10 Form and number of copies (c) Acceptance for filing. Only such of documents. documents as conform to the requirements of this part and any other appli- (a) Documents. Each document filed cable rule or order authorized by the with the Commission must be sub- Commission shall be accepted for fil- mitted through Filing Online by an ac- ing. In order for a document to be account holder, unless a waiver is ob- cepted using Filing Online, it must be tained. submitted to the Commission by a Fil- (1) The text of documents filed with ing Online account holder. the Commission shall be formatted in (1) Subject to § 3001.9(d): not less than one and one-half spaced (i) A document submitted through lines except that footnotes and Filing Online is filed on the date indi- quotations may be single spaced. Docu- cated on the receipt issued by the Sec- ments must be submitted in Arial 12 retary. It is accepted when the Sec- point font, or such program, format, or retary, after review, has posted it on font as the presiding officer may des- the Daily Listing page of the Commis- ignate. sion’s Web site. (2) The Secretary may prescribe addi- (ii) A hardcopy document is filed on tional format requirements for docu- the date stamped by the Secretary. It ments submitted through Filing On- is accepted when the Secretary, after line. review, has posted it on the Daily List- (3) The form of documents filed as li- ing page of the Commission’s Web site. brary references is governed by (2) Any document received after the § 3001.31(b)(2)(iv). close of regular business hours or on a (4) Requests for changes in rates and Saturday, Sunday, or holiday, shall be classifications, including supporting deemed to be filed on the next regular documentation, shall be filed both on- business day. line and in hardcopy form pursuant to (d) Rejected filings. Any filing that paragraph (b) of this section. does not comply with any applicable (5) Documents filed online must sat- rule or order authorized by the Com- isfy Filing Online system compat- mission may be rejected. Any filing ibility requirements specified by the that is rejected is deemed not to have Secretary in the Filing Online User been filed with the Commission. If a Guide, which may be accessed from the filing is rejected, the Secretary or the Filing Online page on the Commis- Secretary’s designee will notify the sion’s Web site, http://www.prc.gov.

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(6) Documents requiring privileged or brief description of the document or protected treatment shall not be filed the nature of the relief sought therein online. (e.g., motion for extension, brief on ex- (b) Hard copies. Each document filed ceptions, complaint, notice of interven- in paper form must be produced on let- tion, answer to complaint). 1 ter-size paper, 8 to 8 ⁄2 inches wide by (b) Designation of individuals to receive 1 10 ⁄2 to 11 inches long, with left- and service. Each notice of intervention right-hand margins not less than 1 inch filed pursuant to § 3001.20 or § 3001.20a and other margins not less than .75 must state the name, full mailing ad- inches, except that tables, charts or special documents attached thereto dress, telephone number, and e-mail may be larger if required, provided that address of up to two individuals des- they are folded to the size of the docu- ignated to receive service of hardcopy ment to which they are attached. If the documents relating to the proceeding. document is bound, it shall be bound (c) Contents. In the event there is no on the left side. Copies of documents rule, regulation, or order of the Com- for filing and service must be printed mission which specifically prescribes from a text-based pdf version of the the contents of any document to be document, where possible. Otherwise, filed, such document shall contain a they may be reproduced by any dupli- proper identification of the parties cating process that produces clear and concerned and a concise but complete legible copies. Participants in pro- statement of the relief sought and of ceedings conducted under subpart H the facts and citations of authority and who are unable to comply with these precedent relied upon. requirements may seek to have them (d) Improper matter. Defamatory, scur- waived. Each person filing a hardcopy rilous, or unethical matter shall not be document with the Commission must included in any document filed with provide an original and 2 fully conformed copies of the document required the Commission. or permitted to be filed under this part, (e) Subscription. Each document filed except for a document filed under seal, with the Commission shall be sub- for which only the original and two (2) scribed. Subscription constitutes a cer- copies need be filed. The copies need tification that he/she has read the doc- not be signed but shall show the full ument being subscribed and filed; that name of the individual signing the he/she knows the contents thereof; that original document and the certificate if executed in any representative ca- of service attached thereto. pacity, the document has been sub- (c) Computer media. A participant scribed and executed in the capacity that has obtained a waiver of the on- specified in the document with full line filing requirement of § 3001.9(a) power and authority so to do; that to may submit a document on standard the best of his/her knowledge, informa- PC media, simultaneously with the fil- tion and belief every statement con- ing of one printed original and two tained in the document is true and no hard copies, provided that the stored such statements are misleading; and document is a file generated in either that such document is not filed for pur- Acrobat (pdf), Word, or WordPerfect, or poses of delay. Rich Text Format (rtf). (1) For a document filed via the [67 FR 67559, Nov. 6, 2002] Internet by an account holder, the subscription requirement is met when the § 3001.11 General contents of documents. document is filed with the Commis- sion. (a) Caption and title. The caption of (2) For a hardcopy document filed each document filed with the Commis- under either § 3001.10(b) or (c), the origi- sion in any proceeding shall clearly nal shall be signed in ink by the indi- show the docket designation and title of the proceeding before the Commis- vidual filing the same or by an author- sion. The title of such document shall ized officer, employee, attorney, or identify each participant on whose be- other representative and all other cop- half the filing is made and include a ies of such document filed with the

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Commission and served on the partici- its website. Service of Commission doc- pants in any proceeding shall be fully uments on any participant that the conformed thereto. Commission or presiding officer has de- (f) Table of contents. Each document termined is unable to receive service filed with the Commission consisting through the Commission Web site shall of 20 or more pages shall include a be by First-Class Mail. table of contents with page references. (d) Hardcopy documents. Each partici- For briefs see § 3001.34. pant filing a hardcopy document in a (g) Certificate of service. A certificate proceeding shall serve such document of service signed in ink must be at- upon each person on the proceeding’s tached to the original of each hardcopy service list, unless that person is sub- document filed with the Commission ject to paragraph (b) of this section, or showing service on all participants in a the Commission or presiding officer proceeding as prescribed by § 3001.12. otherwise directs. All copies filed and served shall be (e) Limitation on extent of hardcopy fully conformed thereto. service. To avoid the imposition of an [67 FR 67559, Nov. 6, 2002] unreasonable burden upon participants, the Commission or the presiding officer § 3001.12 Service of documents. may, by appropriate order, limit serv- (a) Service by account holders. Each ice of hardcopy documents to service document filed in a proceeding via the upon participants intending to actively Internet by an Account Holder shall be participate in the hearing, or upon a deemed served on all participants when person or persons designated for prop- it is accepted by the Secretary and erly representative groups, or by re- posted on the Commission’s Web site, quiring the making of documents except that: available for convenient public inspec- (1) A document subject to tion, or by any combination of such § 3001.10(a)(4) must meet the service re- methods. quirements that apply to hardcopy doc- (f) Service list. The Secretary shall uments as well as those that apply to maintain a current service list in each documents filed online. proceeding which shall include the par- (2) A document that must be served ticipants in that proceeding and up to on a participant that the Commission two individuals designated for service or presiding officer has determined is of documents by each participant. The unable to receive service through the service list for each current proceeding Commission’s Web site shall be served will be available on the Commission’s on such participant by the Secretary Web site http://www.prc.gov. Each par- by First-Class Mail. ticipant is responsible for ensuring (b) Service by others. If the Commis- that its listing on the Commission’s sion or presiding officer has deter- Web site is accurate, and should mined that a participant is unable to promptly notify the Commission of any file documents online, documents filed errors. by that participant must be delivered (g) Method of hardcopy service. Service to the Secretary by hand or First-Class of hardcopy documents may be made Mail. Such documents will be deemed by First-Class Mail or personal deliv- served upon all participants when they ery, to the address shown for the indi- are accepted by the Secretary and post- viduals designated on the Secretary’s ed on the Commission’s Web site. If service list. Service of any hardcopy such documents cannot be posted on document upon the Postal Service the Commission’s website, they will be shall be made by delivering or mailing deemed served on all participants when six copies thereof to the address shown the Secretary posts them as First-Class for the individual designated in the Mail. Secretary’s service list. (c) Service by the Commission. Except (h) Date of hardcopy service. Whenever as provided in this section, each docu- service is made by mail, the date of the ment issued by the Commission or pre- postmark shall be the date of service. siding officer shall be deemed served Whenever service is made by personal upon the participants in the proceeding delivery, the date of such delivery shall upon its posting by the Commission on be the date of service.

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(i) Form of hardcopy certificate of serv- cluded. The last day of the period so ice. The certificate of service of computed is to be included unless it is hardcopy documents shall show the a Saturday, Sunday, or legal holiday name of the participant or his/her for the Commission, in which event the counsel making service, the date and period runs until the end of the next place of service, and include the state- day which is neither a Saturday, Sun- ment that ‘‘I hereby certify that I have day, or holiday. A part-day holiday this day served the foregoing document shall be considered as other days and upon all participants of record in this not as a holiday. In computing a period proceeding in accordance with section of time which is 5 days or less, all Sat- 12 of the rules of practice. urdays, Sundays, and legal holidays of the Commission are to be excluded. [67 FR 67559, Nov. 6, 2002] [38 FR 4327, Feb. 13, 1973; 51 FR 8827, Mar. 14, § 3001.13 Docket and hearing calendar. 1986] The Secretary shall maintain a docket of all proceedings, and each pro- § 3001.16 Continuances and extensions ceeding as initiated shall be assigned of time. an appropriate designation. The Sec- Continuances of any proceeding or retary shall maintain a hearing cal- hearing and extensions of time for endar of all proceedings that have been making any filing or performing any set for hearing. Proceedings shall be act required or allowed to be done heard on the date set in the hearing within a specified time or by a speci- order, except that the Commission may fied date may be granted by the Com- for cause, with or without motion, at mission or the presiding officer upon any time with due notice to the parties motion for good cause shown unless the advance or postpone the date of hear- time for performance or filing is lim- ing. All documents filed in a docket, ited by statute. Requests for extension other than matter filed under seal, and of time shall be by written motion the hearing calendar may be accessed timely filed with the Commission stat- remotely via the Commission’s Web ing the facts on which the application site, or viewed at the Commission’s rests, except that after a hearing has docket section during regular business convened, such requests shall be made hours. by written or oral motion to the pre- [67 FR 67559, Nov. 6, 2002] siding officer. Requests for continuances or extensions of time may as a § 3001.14 Consolidation and separation matter of discretion be acted upon of proceedings. without waiting for answers thereto. The Commission, with or without § 3001.17 Notice of proceeding. motion, may order proceedings involving related issues or facts to be consoli- (a) When issued. The Commission dated for hearing of any or all matters shall issue a notice of a proceeding to in issue in such proceedings. The Com- be determined on the record with an mission may sever proceedings which opportunity for any interested person have been consolidated, or order sepa- to request a hearing whenever: rate proceedings on any issue pre- (1) The Postal Service files a formal sented, if it appears that separate pro- request that the Commission submit a ceedings will be more convenient, expe- recommended decision on changes in ditious, or otherwise appropriate. postal rates or fees or establishing or changing the mail classification sched- § 3001.15 Computation of time. ule; Except as otherwise provided by law, (2) The Commission proposes on its in computing any period of time pre- own initiative to issue a recommended scribed or allowed by this part, or by decision on changes in the mail classi- any notice, order, rule or regulation of fication schedule; the Commission or a presiding officer, (3) The Postal Service files a request the day of the act, event, or default with the Commission to issue an advi- after which the designated period of sory opinion on a proposed change in time begins to run is not to be in- the nature of postal services which will

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generally affect service on a nation- (4) The date by which notices of wide or substantially nationwide basis; intervention and requests for hearing (4) The Commission in the exercise of must be filed; and its discretion determines that an op- (5) Such other information as the portunity for hearing should be pro- Commission may desire to include. vided with regard to a complaint filed [36 FR 396, Jan. 12, 1971, as amended at 42 FR pursuant to subpart E of this part; or 10992, Feb. 25, 1977; 42 FR 13826, Mar. 14, 1977; (5) The Commission in the exercise of 58 FR 38976, July 21, 1993; 65 FR 6540, Feb. 10, its discretion determines to institute 2000] any other proceeding under the Act. (b) Appellate proceedings under 39 § 3001.18 Nature of proceedings. U.S.C. 404(b). The Commission shall (a) Proceedings to be set for hearing. issue a notice of proceeding to be deter- Except as otherwise provided in these mined on a record compiled by the rules, in any case noticed for a pro- Postal Service whenever: ceeding to be determined on the record (1) An appeal of a determination of pursuant to § 3001.17(a), the Commis- the Postal Service to close or consoli- sion may hold a public hearing if a date a post office is taken to the Postal hearing is requested by any party to Rate Commission pursuant to subpart the proceeding or if the Commission in H of this part; or the exercise of its discretion deter- (2) An application to suspend the ef- mines that a hearing is in the public fective date of a determination of the interest. The Commission may give no- Postal Service to close or consolidate a tice of its determination that a hearing post office pending appeal to the Postal shall be held in its original notice of Rate Commission is made pursuant to the proceeding or in a subsequent no- subpart H of this part. tice issued pursuant to paragraph (b) of (c) Publication and service of notice. this section and § 3001.19. Each notice of proceeding shall be pub- (b) Procedure in hearing cases. In pro- lished in the FEDERAL REGISTER and ceedings which are to be set for hear- served on the Postal Service, the coming, the Commission shall issue a no- plainant in a complaint proceeding, tice of hearing or prehearing con- and the appellant in the appeal of a ference pursuant to § 3001.19. After the Postal Service determination to close completion of the hearing, the Com- or consolidate a post office. mission or the presiding officer shall (d) Contents of notice. The notice of a receive such briefs and hear such oral proceeding shall include the following: argument as may be ordered by the Commission or the presiding officer (1) The general nature of the pro- pursuant to §§ 3001.34 to 3001.37, and the ceeding involved in terms of categories Commission shall then issue a rec- listed in paragraphs (a) and (b) of this ommended decision, advisory opinion, section; or public report, as appropriate, in ac- (2) A reference to the legal authority cordance with the provisions of under which the proceeding is to be §§ 3001.38 to 3001.39. conducted; (c) Procedure in non-hearing cases. In (3) A concise description of proposals any case noticed for a proceeding to be for changes in rates or fees, proposals determined on the record in which a for the establishment of or changes in hearing is not requested by any party the mail classification schedule, pro- or ordered by the Commission, the posals for changes in the nature of Commission or the presiding officer postal services; in the case of a com- shall issue a notice of the procedure to plaint, an identification of the com- be followed with regard to the filing of plainant and a concise description of briefs and oral argument, and a rec- the subject matter of the complaint or, ommended decision, advisory opinion, in the case of an appeal, an identifica- or public report, as appropriate, shall tion of the appellant and a summari- then be issued pursuant to the provi- zation of the Postal Service determina- sions of §§ 3001.34 to 3001.39. The Com- tion to close or consolidate under remission or presiding officer may, if view; necessary or desirable, call procedural

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conferences by issuance of a notice pur- whether or not the intervenor requests suant to § 3001.19. a hearing or in lieu thereof, a conference, and whether or not the inter- [36 FR 396, Jan. 12, 1971, as amended at 65 FR 6540, Feb. 10, 2000] venor intends to actively participate in a hearing. Such notice shall also in- § 3001.19 Notice of prehearing con- clude on page one thereof the name and ference or hearing. full mailing address of no more than In any proceeding noticed for a pro- two persons who are to receive service ceeding on the record pursuant to of any documents relating to such pro- § 3001.17(a) the Commission shall give ceeding. due notice of any prehearing con- (c) Form and time of filing. Notices of ference or hearing by including the intervention shall be filed no later time and place of the conference or than the date fixed for such filing in hearing in the notice of proceeding or any notice or order with respect to the by subsequently issuing a notice of pre- proceeding issued by the Commission hearing conference or hearing. Such or its Secretary, unless in extraor- notice of prehearing conference or dinary circumstances for good cause hearing shall give the title and docket shown, the Commission authorizes a designation of the proceeding, a ref- late filing. Notices of intervention erence to the original notice of pro- shall conform to the requirements of ceeding and the date of such notice, §§ 3001.9 through 3001.12. and the time and place of the con- (d) Oppositions. Oppositions to notices ference or hearing. Such notice shall be of intervention may be filed by any published in the FEDERAL REGISTER participant in the proceeding no later and served on all participants in the than 10 days after the notice of inter- proceeding involved. Notice of the time vention is filed. Pending Commission and place where a hearing will be re- action, an opposition to intervention convened shall be served on all partici- shall delay on a day-for-day basis, the pants in the proceeding unless an- date for responses to discovery re- nouncement was made thereof by the quests filed by that intervenor. presiding officer at the adjournment of (e) Effect of intervention. A person fil- an earlier session of the prehearing ing a notice of intervention shall be a conference or hearing. party to the proceeding subject, how- [65 FR 6540, Feb. 10, 2000] ever, to a determination by the Com- mission, either in response to an oppo- § 3001.20 Formal intervention. sition, or sua sponte, that party status (a) Who may intervene. A notice of is not appropriate under the Act. Inter- intervention will be entertained in venors are also subject to the right of those cases that are noticed for a pro- the Commission or the presiding officer ceeding pursuant to § 3001.17(a) from as specified in § 3001.24 to require two any person claiming an interest of such or more intervenors having substan- nature that intervention is allowed by tially like interests and positions to the Act, or appropriate to its adminis- join together for purposes of service of tration. documents, presenting evidence, mak- (b) Contents. A notice of intervention ing and arguing motions and objec- shall clearly and concisely set forth tions, cross-examining witnesses, filing the nature and extent of the interve- briefs, and presenting oral arguments nor’s interest in the issues to be de- to the Commission or presiding officer. cided, including the classifications of No intervention shall be deemed to postal service utilized by the inter- constitute a decision that the intervenor giving rise to his/her interest in vening party has such an interest in the proceeding, and to the extent the proceeding that he/she would be ag- known, the position of the intervenor grieved by an ultimate decision by with regard to the proposed changes in order of the Commission. postal rates, fees, classifications, or [48 FR 15627, Apr. 12, 1983, as amended at 58 services, or the subject matter of the FR 38976, July 21, 1993; 58 FR 38976, July 21, complaint, as described in the notice of 1993; 65 FR 6540, Feb. 10, 2000; 67 FR 67561, the proceeding. Such notice shall state Nov. 6, 2002]

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§ 3001.20a Limited participation by § 3001.20b Informal expression of persons not parties. views by persons not parties or lim- Notwithstanding the provisions of ited participators (commenters). § 3001.20, any person may appear as a Notwithstanding the provisions of limited participator in any case that is §§ 3001.19a and 3001.20, any person may noticed for a proceeding pursuant to file with the Commission, in any case § 3001.17(a), in accordance with the fol- that is noticed for a hearing pursuant lowing provisions; to § 3001.17, an informal statement of (a) Form of intervention. Notices of views in writing, in accordance with intervention as a limited participator the following provisions: shall be in writing, shall set forth the (a) Form of statement. A statement nature and extent of the intervenor’s filed pursuant to this section may be interest in the proceeding, and shall submitted as a hardcopy letter mailed conform to the requirements of §§ 3001.9 to the Secretary or an electronic mes- through 3001.12. sage entered on the form provided for (b) Oppositions. Oppositions to notices this purpose under the ‘‘Contact Us’’ to intervene as a limited participator link on the Commission’s Web site, may be filed by any participant in the http://www.prc.gov. proceeding no later than 10 days after (b) Contents of statement. A statement the notice of intervention as a limited filed pursuant to this section shall set participator is filed. forth the name and full mailing address (c) Scope of participation. Subject to of the person by whom or on whose be- the provisions of § 3001.30(f), limited half it is filed, a concise statement of participators may present evidence the issue or issues to which the com- which is relevant to the issues involved ments contained therein apply, and a in the proceeding and their testimony clear statement of any views, opinions, shall be subject to cross-examination or suggestions which the person filing on the same terms applicable to that of the statement wishes to lay before the formal participants. Limited partici- Commission. pants may file briefs or proposed find- (c) Disposition by the Commission or ings pursuant to §§ 3001.34 and 3001.35, presiding officer. Statements filed pur- and within 15 days after the release of suant to this section shall be made a an intermediate decision, or such other part of the Commission’s files in the time as may be fixed by the Commis- proceeding. The Secretary shall main- sion, they may file a written statement tain a file of such statements which of their position on the issues. The shall be segregated from the evi- Commission or the presiding officer dentiary record in the proceeding, and may require limited participators hav- shall be open to public inspection during substantially like interests and po- ing the Commission’s office hours. A sitions to join together for any or all of statement or exhibit thereto filed pur- the above purposes. Limited partici- suant to this section shall not be ac- pators are not required to respond to cepted in the ‘‘record,’’ as defined by discovery requests under § 3001.25 § 3001.5(k) except to the extent that it through § 3001.28 except to the extent is (1) otherwise formally introduced in that those requests are directed specifi- evidence, or (2) a proper subject of offi- cally to testimony which the limited cial notice, pursuant to § 3001.31(j). participators provided in the pro- (d) Ex parte communications—excep- ceeding; however, limited partici- tion. A statement filed pursuant to this pators, particularly those making con- section shall not be considered an ex tentions under 39 U.S.C. 3622(b)(4), are parte communication within the mean- advised that failure to provide relevant ing of § 3001.7. and material information in support of [42 FR 8142, Feb. 9, 1977. Redesignated at 48 their claims will be taken into account FR 15627, Apr. 12, 1983, as amended at 58 FR in determining the weight to be placed 38976, July 21, 1993; 68 FR 47, Jan. 2, 2003] on their evidence and arguments. § 3001.21 Motions. [48 FR 15627, Apr. 12, 1983, as amended at 58 FR 38976, July 21, 1993; 60 FR 12115, Mar. 6, (a) Scope and contents. An application 1995; 65 FR 6540, Feb. 10, 2000; 67 FR 67561, for an order or ruling not otherwise Nov. 6, 2002] specifically provided for in this part

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shall be by motion. Motions shall set expeditious discharge of its responsibil- forth with particularity the ruling or ities under the Act. A request for waiv- relief sought, the grounds and basis er shall not be entertained unless it is therefor, and the statutory or other au- timely filed so as to permit Commis- thority relied upon, and shall be filed sion disposition of the request prior to with the Secretary and served pursuant the date specified for the requirement to the provisions of §§ 3001.9 to 3001.12. for which waiver is requested. The All motions to dismiss proceedings or pendency of a request for waiver does other motions which involve a final de- not justify or excuse any person from termination of the proceeding shall be timely meeting the requirements of addressed to the Commission. After a this part. presiding officer is designated in any proceeding, and before the issuance of § 3001.23 Presiding officers. an initial decision pursuant to § 3001.39 (a) Authority delegated. Presiding offi- or certification of the record to the cers shall have the authority, within Commission pursuant to § 3001.38, all the Commission’s powers and subject other motions in that proceeding shall to its published rules, as follows: be addressed to the presiding officer. (1) To regulate the course of the (b) Answers. Within seven days after a hearing, including the recessing, recon- motion is filed, or such other period as the rules provide or the Commission or vening, and adjournment thereof, un- presiding officer may fix, any partici- less otherwise directed by the Commis- pant to the proceeding may file and sion, as provided in § 3001.16; serve an answer in support of or in op- (2) To administer oaths and affirma- position to the motion pursuant to tions; §§ 3001.9 to 3001.12. Such answers shall (3) To issue subpoenas authorized by state with particularity the position of law; the participant with regard to the rul- (4) To rule upon offers of proof and ing or relief requested in the motion receive relevant evidence; and the grounds and basis and statu- (5) To take or authorize that depository or other authority relied upon. tions be taken as provided in § 3001.33; Unless the Commission or presiding of- (6) To hold appropriate conferences ficer otherwise provides, no reply to an before or during hearings and to rule answer or any further responsive docu- on matters raised at such conferences ment shall be filed. including those specified in paragraph (c) Motions to strike. Motions to strike (d) of § 3001.24; are requests for extraordinary relief (7) To dispose of procedural requests and are not substitutes for briefs or re- or similar matters but not, before their buttal evidence in a proceeding. All initial or recommended decision, to motions to strike testimony or exhibit dispose of motions made during hear- materials are to be submitted in writings to dismiss proceedings or other ing at least 14 days before the sched- motions which involve a final deter- uled appearance of the witness, unless mination of the proceeding; good cause is shown. Responses to mo- (8) Within their discretion, or upon tions to strike are due within seven direction of the Commission, to certify days. any question to the Commission for its [38 FR 4327, Feb. 13, 1973, as amended at 51 consideration and disposition; FR 8827, Mar. 14, 1986; 58 FR 38976, July 21, (9) To submit an initial or rec- 1993; 65 FR 6540, Feb. 10, 2000] ommended decision in accordance with §§ 3001.38 and 3001.39; and § 3001.22 Requests for waiver. (10) To take any other action nec- Upon request by motion, any require- essary or appropriate to the discharge ment of any subpart of this Part 3001 of the duties vested in them, consistent may be waived in whole or in part to with the statutory or other authorities the extent permitted by law upon a under which the Commission functions showing that such waiver will not un- and with the rules, regulations, and duly prejudice the interests of other policies of the Commission. participants and is consistent with the (b) Conduct of hearings. It is the duty public interest and the Commission’s of the presiding officer to conduct a

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fair and impartial hearing and to main- the presiding officer and all partici- tain order. Any disregard by participants to that end. pants or counsel of his/her rulings on (b) Informal off-the-record procedures. matters of order and procedure shall be In order to make the prehearing con- noted on the record, and where he/she ference as effective as possible, the pre- deems it necessary shall be made the siding officer may, in his/her discre- subject of a special written report to tion, direct that conferences be held off the Commission. In the event that par- the record at the beginning of a pre- ticipants or counsel should be guilty of hearing conference or at other appro- disrespectful, disorderly, or contuma- priate times, without the presiding of- cious language or conduct in connec- ficer being present. Such informal off- tion with any hearing, the presiding of- the-record conferences shall be pre- ficer immediately may submit to the sided over by the Commission’s officer Commission his/her report thereon, to- designated to represent the interests of gether with his/her recommendations, the general public or such other person and in his/her discretion, suspend the as the participants may select. At such hearing. off-the-record conferences the partici- (c) Ex parte communication. Except to pants shall be expected to reach agree- the extent required for the disposition ment on those matters which will expe- of ex parte matters as authorized by dite the proceeding, including the mat- law and by the rules of the Commis- ters specified in the notice of the pre- sion, no presiding officer shall, in any hearing conference, in the ruling of the proceeding in which the Commission presiding officer directing that the off- may so direct, or in any proceeding re- the-record conference be held and in quired by statute to be determined on paragraph (d) of this section. A report the record after opportunity for hear- on the results of such off-the-record ing, consult any person on any matter conference shall be made to the pre- in issue unless upon notice and oppor- siding officer on the record at a time tunity for all participants to be heard. specified by the presiding officer and (d) Disqualification. A presiding offi- he/she shall then determine the further cer may withdraw from a proceeding prehearing procedures to be followed. when he/she deems himself disqualified, (c) Required preparation and coopera- or may be withdrawn by the Commis- tion of all parties. All participants in sion for good cause found after timely any proceeding before the Commission affidavits alleging personal bias or are required and expected to come to other disqualifications have been filed. the prehearing conference fully prepared to discuss in detail and resolve [36 FR 396, Jan. 12, 1971, as amended at 49 FR all matters specified in paragraph (d) 6490, Feb. 22, 1984; 51 FR 8827, Mar. 14, 1986; 58 of this section, and notice of the pre- FR 38976, July 21, 1993] hearing conference, and such other notice or agenda as may have been issued § 3001.24 Prehearing conferences. by the Commission or the presiding of- (a) Initiation and purposes. In any pro- ficer. All participants are required and ceeding the Commission or the pre- expected to cooperate fully at all siding officer may, with or without mo- stages of the proceeding to achieve tion, upon due notice as to time and these objectives, through thorough ad- place, direct the participants in a pro- vance preparation for the prehearing ceeding to appear for a prehearing con- conference, including informal commu- ference for the purposes of considering nications between the participants, re- all possible ways of expediting the pro- quests for discovery and appropriate ceeding, including those in paragraph discovery procedures at the earliest (d) of this section. It is the intent of possible time and no later than at the the Commission to issue its rec- prehearing conference, and the com- ommended decision or advisory opinion mencement of preparation of evidence on requests under sections 3622, 3623, and cross-examination. The failure of and 3661 of the Act with the utmost any participant to appear at the pre- practicable expedition. The Commis- hearing conference or to raise any mat- sion directs that these prehearing pro- ters that could reasonably be antici- cedures shall be rigorously pursued by pated and resolved at the prehearing

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conference shall not be permitted to imum the amount of hearing time re- unduly delay the progress of the pro- quired for oral cross-examination of ceeding and shall constitute a waiver witnesses; of the rights of the participant with re- (9) Division of the proceeding where gard thereto, including all objections practicable into two or more phases for to the agreements reached, actions separate simultaneous hearings; taken, or rulings issued by the pre- (10) Fixing dates for the submission siding officer with regard thereto. and service of such written testimony (d) Matters to be pursued. At the pre- and exhibits as may be appropriate in hearing conference in any proceeding, advance of the hearing; the presiding officer and the partici- (11) Order of presentation of the evi- pants shall consider and resolve the dence and cross-examination of wit- following matters: nesses so that the hearing may proceed (1) The definition and simplification in the most expeditious and orderly of the issues including any appropriate manner possible; and explanation, clarification, or amend- (12) All other matters which would ment of any proposal, filing, evidence, aid in an expeditious disposition of the complaint or other pleading filed by proceeding, including consent of the any participant; participants to the conduct of the en- (2) Arrangement for timely comple- tire proceedings off the record. tion of discovery from the Postal Serv- (e) Rulings by presiding officer. The ice or any other participant concerning presiding officer at such prehearing information desired by any participant conference, irrespective of the consent with regard to any issues in the proof the participants, shall dispose of by ceeding or prior filings, evidence or ruling (1) any of the procedural mat- pleadings of any participant; ters itemized in paragraph (d) of this (3) Agreement as to procedures for section and (2) such other procedural timely discovery with regard to any fu- matters on which he/she is authorized ture evidentiary filings of any partici- to rule during the course of the hearing pant; if ruling at this stage would expedite (4) Stipulations, admissions or con- the proceeding. Either on the record at cessions as to evidentiary facts, and the conclusion of such prehearing con- agreements as to documentary mat- ference, or by order issued shortly ters, exhibits and matters of official thereafter, the presiding officer shall notice, which will avoid unnecessary state the agreements reached by the proof or dispute; participants, the actions taken, and (5) Grouping parties with substan- the rulings made by the presiding offi- tially like interests for purposes of pre- cer. Such rulings shall control the sub- senting evidence, making and arguing sequent course of the proceedings un- motions and objections, cross-exam- less modified at the hearing to prevent ining witnesses, filing briefs, and pre- manifest injustice. senting oral argument to the Commis- [36 FR 396, Jan. 12, 1971, as amened at 58 FR sion or presiding officer; 38976, July 21, 1993] (6) Disclosure of the number, identity and qualifications of witnesses, and the § 3001.25 Discovery—general policy. nature of their testimony, particularly (a) Rules 26 through 28 allow dis- with respect to the policies of the Act covery reasonably calculated to lead to and, as applicable according to the na- admissible evidence during a noticed ture of the proceeding, each factor proceeding. Generally, discovery stated in section 3622 or 3623 of the Act; against a participant will be scheduled (7) Limitation of the scope of the evi- to end prior to the receipt into evidence and the number of witnesses to dence of that participant’s direct case. eliminate irrelevant, immaterial, or An exception to this procedure shall cumulative and repetitious evidence; operate in all proceedings brought (8) Procedures to direct and control under 39 U.S.C. 3622, 3623, 3661 and 3662 the use of discovery prior to the hear- when a participant needs to obtain ining and submission of written testi- formation (such as operating proce- mony and exhibits on matters in dis- dures or data) available only from the pute so as to restrict to a bare min- Postal Service. Discovery requests of

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this nature are permissible only for the ticipant to identify each person whom purpose of the development of rebuttal the other participant expects to call as testimony and may be made up to 20 a witness at the hearing and to state days prior to the filing date for final the subject matter on which the wit- rebuttal testimony. ness is expected to testify. The partici- (b) The discovery procedures set pant propounding the interrogatories forth in rules 26 through 28 are not ex- shall file them with the Commission in clusive. Participants are encouraged to conformance with §§ 3001.9 through engage in informal discovery whenever 3001.12. Follow-up interrogatories to possible to clarify exhibits and testi- clarify or elaborate on the answer to mony. The results of these efforts may an earlier discovery request may be be introduced into the record by stipu- filed after the initial discovery period lation, by supplementary testimony or ends. They must be filed within seven exhibit, by presenting selected written days of receipt of the answer to the interrogatories and answers for adop- previous interrogatory unless extraor- tion by a witness at the hearing, or by dinary circumstances are shown. other appropriate means. In the inter- (b) Answers. Answers to discovery re- est of reducing motion practice, parties quests shall be prepared so that they also are expected to use informal can be incorporated as written cross- means to clarify questions and to iden- examination. Each answer shall begin tify portions of discovery requests con- on a separate page, identify the indi- sidered overbroad or burdensome. vidual responding and the relevant tes- (c) If a participant or an officer or timony number, if any, the participant agent of a participant fails to obey an who asked the question, and the num- order of the Commission or the pre- ber and text of the question. Each in- siding officer to provide or permit dis- terrogatory shall be answered sepa- covery pursuant to §§ 3001.26 to 3001.28, rately and fully in writing, unless it is the Commission or the presiding officer objected to, in which event the reasons may make such orders in regard to the for objection shall be stated in the failure as are just, and among others, manner prescribed by paragraph (c) of may direct that the matters regarding this section. The participant respond- which the order was made or any other ing to the interrogatories shall file the designated facts shall be taken to be answers in conformance with §§ 3001.9 established for the purposes of the pro- through 3001.12 within 14 days of the ceeding in accordance with the claim filing of the interrogatories or within of the participants obtaining the order, such other period as may be fixed by or prohibit the disobedient participant the Commission or presiding officer, from introducing designated matters in but before the conclusion of the hear- evidence, or strike the evidence, coming. plaint or pleadings or parts thereof. (c) Objections. In the interest of expe- [65 FR 6543, Feb. 10, 2000] dition, the bases for objection shall be clearly and fully stated. If objection is § 3001.26 Interrogatories for purpose made to part of an interrogatory, the of discovery. part shall be specified. A participant (a) Service and contents. In the inter- claiming privilege shall identify the est of expedition and limited to infor- specific evidentiary privilege asserted mation which appears reasonably cal- and state the reasons for its applica- culated to lead to the discovery of ad- bility. A participant claiming undue missible evidence, any participant may burden shall state with particularity propound to any other participant in a the effort that would be required to an- proceeding written, sequentially num- swer the interrogatory, providing esti- bered interrogatories, by witness, re- mates of cost and work hours required, questing nonprivileged information rel- to the extent possible. An interrog- evant to the subject matter in such atory otherwise proper is not nec- proceeding, to be answered by the par- essarily objectionable because an an- ticipant served, who shall furnish such swer would involve an opinion or con- information as is available to the par- tention that relates to fact or the ap- ticipant. A participant through inter- plication of law to fact, but the Com- rogatories may require any other par- mission or presiding officer may order

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that such an interrogatory need not be (g) Orders. The Commission or the answered until a prehearing conference presiding officer may order that any or other later time. Objections shall be participant or person shall answer on filed with the Commission in conform- such terms and conditions as are just ance with §§ 3001.9 through 3001.12 with- and may for good cause make any pro- in 10 days of the filing of the interrog- tective order, including an order lim- atories. iting or conditioning interrogatories, (d) Motions to compel responses to dis- as justice requires to protect a partici- covery. Motions to compel a more re- pant or person from undue annoyance, sponsive answer, or an answer to an in- embarrassment, oppression, or expense. terrogatory to which an objection was [65 FR 6541, Feb. 10, 2000, as amended at 67 interposed, should be filed within 14 FR 67561, Nov. 6, 2002] days of the answer or objection to the discovery request. The text of the dis- § 3001.27 Requests for production of documents or things for purpose of covery request, and any answer pro- discovery. vided, should be provided as an attachment to the motion to compel. Partici- (a) Service and contents. In the inter- pants who have objected to interrog- est of expedition and limited to infor- atories which are the subject of a mo- mation which appears reasonably cal- tion to compel shall have seven days to culated to lead to the discovery of ad- answer. Answers will be considered missible evidence, any participant may supplements to the arguments preserve on any other participant to the sented in the initial objection. proceeding a request to produce and permit the participant making the re- (e) Compelled answers. The Commis- quest, or someone acting in his/her be- sion, or the presiding officer, upon mo- half, to inspect and copy any des- tion of any participant to the pro- ignated documents or things that con- ceeding, may compel a more responsive stitute or contain matters, not privi- answer, or an answer to an interrog- leged, that are relevant to the subject atory to which an objection has been matter involved in the proceeding and raised if the objection is found not to that are in the custody or control of be valid, or may compel an additional the participant to whom the request is answer if the initial answer is found to addressed. The request shall set forth be inadequate. Such compelled answers the items to be inspected either by in- shall be filed in conformance with dividual item or category, and describe §§ 3001.9 through 3001.12 within seven each item and category with reason- days of the date of the order compel- able particularity, and shall specify a ling an answer or within such other pe- reasonable time, place and manner of riod as may be fixed by the Commis- making inspection. The participant re- sion or presiding officer, but before the questing the production of documents conclusion of the hearing. or things shall file its request with the (f) Supplemental answers. The indi- Commission in conformance with vidual or participant who has answered §§ 3001.9 through 3001.12. interrogatories is under the duty to (b) Answers. The participant respond- seasonably amend a prior answer if he/ ing to the request shall file an answer she obtains information upon the basis with the Commission in conformance of which he/she knows that the answer with §§ 3001.9 through 12 within 14 days was incorrect when made or is no after the request is filed, or within longer true. Participants shall serve such other period as may be fixed by supplemental answers to update or to the Commission or presiding officer. correct responses whenever necessary, The answer shall state, with respect to up until the date the answer could have each item or category, that inspection been accepted into evidence as written will be permitted as requested unless cross-examination. Participants filing the request is objected to pursuant to supplemental answers shall indicate paragraph (c) of this section. whether the answer merely supple- (c) Objections. In the interest of expe- ments the previous answer to make it dition, the bases for objection shall be current or whether it is a complete re- clearly and fully stated. If objection is placement for the previous answer. made to part of an item or category,

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the part shall be specified. A partici- § 3001.28 Requests for admissions for pant claiming privilege shall identify purpose of discovery. the specific evidentiary privilege as- (a) Service and content. In the interest serted and state with particularity the of expedition, any participant may reasons for its applicability. A partici- serve upon any other participant a pant claiming undue burden shall state written request for the admission, for with particularity the effort that purposes of the pending proceeding would be required to answer the re- only, of any relevant, unprivileged quest, providing estimates of cost and facts, including the genuineness of any work hours required, to the extent pos- documents or exhibits to be presented sible. Objections shall be filed with the in the hearing. The participant re- Commission in conformance with questing the admission shall file its re- §§ 3001.9 through 3001.12 within 10 days quest with the Commission in conform- of the request for production. ance with §§ 3001.9 through 3001.12. (d) Motions to compel requests for pro- (b) Answers. Each matter of which an duction of documents or things for pur- admission is requested shall be sepa- poses of discovery. Motions to compel rately set forth and is admitted unless shall be filed within 14 days of the an- within 14 days after the request is filed, swer or objection to the discovery re- or within such other period as may be quest. The text of the discovery re- fixed by the Commission or presiding quest, and any answer provided, should officer, the participant to whom the re- be provided as an attachment to the quest is directed files a written answer motion to compel. Participants who or objection pursuant to paragraph (c) have objected to requests for produc- of this section. A participant who an- tion of documents or things which are swers a request for admission shall file the subject of a motion to compel shall its answer with the Commission in con- have seven days to answer. Answers formance with §§ 3001.9 through 3001.12. will be considered supplements to the (c) Objections. In the interest of expe- arguments presented in the initial ob- dition, the bases for objection shall be jection. clearly and fully stated. If objection is (e) Compelled answers. Upon motion of made to part of an item, the part shall any participant to the proceeding to be specified. A participant claiming compel a response to discovery, as pro- privilege shall identify the specific evi- vided in paragraph (d) of this section, dentiary privilege asserted and state the Commission or the presiding officer the reasons for its applicability. A par- may compel production of documents ticipant claiming undue burden shall or things to which an objection is state with particularity the effort that found not to be valid. Such compelled would be required to answer the re- documents or things shall be made quest, providing estimates of cost and available to the participant making work hours required to the extent pos- the motion within seven days of the sible. Objections shall be filed with the date of the order compelling produc- Commission in conformance with tion or within such other period as §§ 3001.9 through 3001.12, within 10 days may be fixed by the Commission or pre- of the request for admissions. siding officer, but before the conclu- (d) Motions to compel responses to re- sion of the hearing. When complying quests for admissions. Motions to compel with orders to produce documents or a more responsive answer, or an answer things, notice shall be filed in conform- to a request to which an objection was ance with §§ 3001.9 through 3001.12. The interposed, shall be filed within 14 days Commission or the presiding officer of the answer or objection to the re- may, on such terms and conditions as quest for admissions. The text of the are just and reasonable, order that any request for admissions, and any answer participant in a proceeding shall re- provided, should be provided as an at- spond to a request for inspection, and tachment to the motion to compel. may make any protective order of the Participants who have objected to re- nature provided in § 3001.26(g) as may quests for admissions which are the be appropriate. subject of a motion to compel shall [65 FR 6541, Feb. 10, 2000, as amended at 67 have seven days to answer. Answers FR 67562, Nov. 6, 2002] will be considered supplements to the

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arguments presented in the initial ob- in whose behalf each such appearance jection. has been made. (e) Compelled answers. Upon motion of (d) Order of procedure. In public hear- any participant to the proceeding the ings before the Commission, the Postal Commission or the presiding officer Service shall open and close in pro- may compel answers to a request for ceedings which it has initiated under admissions to which an objection has sections 3622, 3623, or 3661 of the Act, been raised if the objection is found not and a complainant shall open and close to be valid. Such compelled answers in proceedings on complaints filed shall be filed with the Commission in under section 3662 of the Act. With re- conformance with §§ 3001.9 through spect to the order of presentation of all 3001.12 within seven days of the date of other participants, and in all other pro- the order compelling production or ceedings, unless otherwise ordered by within such other period as may be the Commission, the presiding officer fixed by the Commission or the pre- shall direct the order of presentation of siding officer, but before the conclu- evidence and issue such other proce- sion of the hearing. If the Commission dural orders as may be necessary to as- or presiding officer determines that an sure the orderly and expeditious con- answer does not comply with the re- clusion of the hearing. quirements of this rule, it may order (e)(1) Presentations by participants. either that the matter is admitted or Any participant shall have the right in that an amended answer be filed. public hearings of presentation of evi- [65 FR 6542, Feb. 10, 2000, as amended at 67 dence, cross-examination (limited to FR 67562, Nov. 6, 2002] testimony adverse to the participant conducting the cross-examination), ob- § 3001.29 Settlement conferences. jection, motion, and argument. The Any participant in a proceeding may case-in-chief of participants other than submit offers of settlement or pro- the proponent shall be in writing and posals of adjustment at any time and shall include the participant’s direct may request a conference between the case and rebuttal, if any, to the initial participants to consider such offers or proponent’s case-in-chief. It may be ac- proposals. The Commission or the pre- companied by a trial brief or legal siding officer shall afford the partici- memoranda. (Legal memoranda on pants appropriate opportunity prior to matters at issue will be welcome at or during the hearing for conferences any stage of the proceeding.) There will for the purpose of considering such of- be an opportunity for participants to fers or proposals as time, the nature of rebut presentations of other partici- the proceeding, and the public interest pants and for the initial proponent to permit. Unaccepted offers of settle- present surrebuttal evidence. New af- ment or adjustment and proposed stip- firmative matter (not in reply to an- ulations not agreed to shall be privi- other participant’s direct case) should leged and shall not be admissible in not be included in rebuttal testimony evidence against any participant or exhibits. When objections to the ad- claiming such privilege. mission or exclusion of evidence before the Commission or the presiding officer § 3001.30 Hearings. are made, the grounds relied upon shall (a) How initiated. Hearings for the be stated. Formal exceptions to rulings purpose of taking evidence shall be ini- are unnecessary. tiated by the issuance of a notice by (2) Written cross-examination. Written the Commission as provided in § 3001.19. cross-examination will be utilized as a (b) Presiding officer. All hearings shall substitute for oral cross-examination be held before the Commission sitting whenever possible, particularly to in- en banc, or a duly designated presiding troduce factual or statistical evidence. officer. Designations of written cross-examina- (c) Entering of appearances. The Com- tion should be served in accordance mission or the presiding officer before with §§ 3001.9 through 3001.12 no later whom the hearing is held will cause to than three working days before the be entered on the record all appear- scheduled appearance of a witness. Des- ances together with a notation showing ignations shall identify every item to

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be offered as evidence, listing the par- amination of witnesses for that partici- ticipant who initially posed the dis- pant should be delivered to counsel for covery request, the witness and/or that participant and served three or party to whom the question was ad- more working days before the an- dressed (if different from the witness nounced appearance of the witness, and answering), the number of the request cross-examination exhibits should be and, if more than one answer is pro- delivered to counsel for the witness at vided, the dates of all answers to be in- least two calendar days (including one cluded in the record. (For example, working day) before the scheduled ap- ‘‘OCA–T1–17 to USPS witness Jones, pearance of the witness. answered by USPS witness Smith (f) Limitations on presentation of the (March 1, 1997) as updated (March 21, evidence. The taking of evidence shall 1997)).’’ When a participant designates proceed with all reasonable diligence written cross-examination, two hard and dispatch, and to that end, the Com- copies of the documents to be included mission or the presiding officer may shall simultaneously be submitted to limit appropriately (1) the number of the Secretary of the Commission. The witnesses to be heard upon any issue, Secretary of the Commission shall pre- (2) the examination by any participant pare for the record a packet containing to specific issues, and (3) the cross-ex- all materials designated for written amination of a witness to that required cross-examination in a format that fa- for a full and true disclosure of the cilitates review by the witness and facts necessary for the disposition of counsel. The witness will verify the an- the proceeding and to avoid irrelevant, swers and materials in the packet, and immaterial, or unduly repetitious tes- they will be entered into the transcript timony. by the presiding officer. Counsel may (g) Motions during hearing. After a object to written cross-examination at hearing has commenced in a pro- that time, and any designated answers ceeding, a request may be made by mo- or materials ruled objectionable will be tion to the presiding officer for any stricken from the record. procedural ruling or relief desired. (3) Oral cross-examination. Oral cross- Such motions shall set forth the ruling examination will be permitted for or relief sought, and state the grounds clarifying written cross-examination therefor and statutory or other sup- and for testing assumptions, conclu- porting authority. Motions made dur- sions or other opinion evidence. No- ing hearings may be stated orally upon tices of intent to conduct oral cross-ex- the record, except that the presiding amination should be filed three or officer may require that such motions more working days before the an- be reduced to writing and filed sepa- nounced appearance of the witness and rately. Any participant shall have the should include specific references to opportunity to answer or object to the subject matter to be examined and such motions at the time and in the page references to the relevant direct manner directed by the presiding offi- testimony and exhibits. A participant cer. intending to use complex numerical (h) Rulings on motions. The presiding hypotheticals, or to question using in- officer is authorized to rule upon any tricate or extensive cross-references, such motion not formally acted upon shall provide adequately documented by the Commission prior to the com- cross-examination exhibits for the mencement of a prehearing conference record. Copies of these exhibits should or hearing where immediate ruling is be filed at least two calendar days (in- essential in order to proceed with the cluding one working day) before the prehearing conference or hearing, and scheduled appearance of the witness. upon any motion to the presiding offi- They may be filed online or delivered cer filed or made after the commence- in hardcopy form to counsel for the ment thereof, except that no motion witness, at the discretion of the partic- made to the presiding officer, a ruling ipant. If a participant has obtained per- upon which would involve or constitute mission to receive service of docu- a final determination of the pro- ments in hardcopy form, hardcopy no- ceeding, shall be ruled upon affirma- tices of intent to conduct oral cross-ex- tively by the presiding officer except as

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a part of his intermediate decision. ument containing other matter not This section shall not preclude a pre- material or relevant or not intended to siding officer, within his discretion, be put in evidence, the participant of- from referring any motion made in fering the same shall plainly designate hearing to the Commission for ulti- the matter offered excluding the imma- mate determination. terial or irrelevant parts. If other mat- (i) Transcript corrections. Corrections ter in such document is in such bulk or to the transcript of a hearing should extent as would unnecessarily encum- not be requested except to correct a ber the record, it may be marked for material substantive error in the tran- identification, and, if properly authen- scription made at the hearing. ticated, the relevant and material [36 FR 396, Jan. 12, 1971, as amended at 60 FR parts may be read into the record, or, if 12116, Mar. 6, 1995; 65 FR 6543, Feb. 10, 2000; 67 the Commission or presiding officer so FR 67563, Nov. 6, 2002] directs, a true copy of such matter in proper form shall be received in evi- § 3001.31 Evidence. dence as an exhibit. Copies of docu- (a) Form and admissibility. In any pub- ments shall be delivered by the partici- lic hearing before the Commission, or a pant offering the same to the other presiding officer, relevant and material participants or their attorneys appear- evidence which is not unduly repeti- ing at the hearing, who shall be af- tious or cumulative shall be admis- forded an opportunity to examine the sible. Witnesses whose testimony is to entire document and to offer in evi- be taken shall be sworn, or shall af- dence in like manner other material firm, before their testimony shall be and relevant portions thereof. deemed evidence in the proceeding or (2) Library references. (i) The term any questions are put to them. ‘‘library reference’’ is a generic term or (b) Documentary material—(1) General. label that participants and others may Documents and detailed data and infor- use to identify or designate certain mation shall be presented as exhibits. documents or things (‘‘material’’) filed Exhibits should be self-explanatory. with the Commission’s docket section. They should contain appropriate foot- To the extent possible, material filed notes or narrative explaining the as a library reference shall be identi- source of each item of information fied and referred to by participants in used and the methods employed in sta- terms of the following categories: Cat- tistical compilations. The principal egory 1—Reporting Systems Material title of each exhibit should state what (consisting of library references relat- it contains or represents. The title may ing to the Service’s statistical cost and also contain a statement of the purpose revenue reporting systems, and their for which the exhibit is offered; how- primary outputs); Category 2—Witness ever, this statement will not be consid- Foundational Material (consisting of ered part of the evidentiary record. material relating to the testimony of Where one part of a multi-part exhibit specific witnesses, primarily that is based on another part or on another which is essential to the establishment exhibit, appropriate cross-references of a proper foundation for receiving should be made. Relevant exposition into evidence the results of studies and should be included in the exhibits or analyses); Category 3—Reference Mate- provided in accompanying testimony. rial (consisting of previously published Testimony, exhibits and supporting material provided for the convenience workpapers prepared for Commission of the reader, such as books, chapters proceedings that are premised on data or other portions of books, articles, re- or conclusions developed in a library ports, manuals, handbooks, guides, and reference shall provide the location of contracts; Category 4—Material Pro- that information within the library vided in Response to Discovery (con- reference with sufficient specificity to sisting of material provided in response permit ready reference, such as the to discovery requests); Category 5— page and line, or the file and the work- Disassociated Material (consisting of sheet or spreadsheet page or cell. material filed at the request of an- Where relevant and material matter of- other, from which the filing party fered in evidence is embraced in a doc- wishes to be disassociated, is not

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vouching for or sponsoring the mate- reason for filing the material under rial provided); Category 6—All Other this provision; Material (consisting of library ref- (B) Satisfaction of all other applica- erences not fitting any of the other ble requirements relating to library categories). references; and (ii) The practice of filing a library (C) The Commission’s right to refuse reference is authorized primarily as a acceptance of the material in its dock- convenience to filing participants and et room and its right to take other ac- the Commission under certain cir- tion to ensure participants’ ability to cumstances. These include when the obtain access to the material. physical characteristics of the mate- (iv) Filing procedure. Participants rial, such as number of pages, bulk, or filing material as a library reference format, are reasonably likely to render shall file contemporaneous written no- compliance with the service require- tice of this action in conformance with ments unduly burdensome; and one of §§ 3001.9 through 3001.12. The notice the following considerations apply: shall: (A) Interest in the material or things (A) Set forth the reason(s) why the so labeled is likely to be so limited material is being designated as a li- that service on the entire list would be brary reference, with specific reference unreasonably burdensome, and the par- to paragraphs (b)(2)(ii) and (iii) of this ticipant agrees to serve the material section; on individual participants upon request (B) Identify the category into which within three days of a request, or to the material falls and describe in detail provide, within the same period, an ex- what the material consists of or rep- planation of why the material cannot resents, noting matters such as the be provided within three days, and to presence of survey results; undertake reasonable efforts to (C) Explain in detail how the mate- promptly provide the material; or rial relates to the participant’s case or (B) The participant satisfactorily to issues in the proceeding; demonstrates that designation of mate- (D) Identify authors or others material as a library reference is appropriate because the material constitutes rially contributing to substantive as- a secondary source. A secondary source pects of the preparation or develop- is one that provides background for a ment of the library reference; position or matter referred to else- (E) Identify the documents (such as where in a participant’s case or filing, testimony, exhibits, and an interrog- but does not constitute essential sup- atory) or request to which the library port and is unlikely to be a material reference relates, to the extent prac- factor in a decision on the merits of ticable; issues in the proceeding; or (F) Identify other library references (C) Reference to, identification of, or or testimony relied upon or referred to use of the material would be facilitated in the designated material, to the ex- if it is filed as a library reference; or tent practicable; (D) The material is filed in compli- (G) Indicate whether the library ref- ance with a discovery request for pro- erence is an update or revision to an- duction of documents or things. other library reference and, if it is, (iii) Other circumstances. If a partici- clearly identify the predecessor mate- pant considers it appropriate to file rial. material as a library reference because (H) To the extent feasible, identify its physical characteristics render portions expected to be entered into service unduly burdensome, but cannot the record and the expected sponsor (if satisfy the terms set out in paragraphs the participant filing a library ref- (b)(2)(ii)(A) through (D) of this section, erence anticipates seeking, on its own the material may be filed (by means of behalf, to enter all or part of the mate- a notice) subject to the following con- rial contained therein into the evi- ditions: dentiary record). (A) Inclusion in the accompanying (v) Labeling. Material filed as a li- notice of a detailed explanation of the brary reference shall be labeled in a

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manner consistent with standard Com- other document need not be produced mission notation and any other condi- or marked for identification, but may tions the presiding officer or Commis- be offered in evidence by specifying the sion establishes. report, document, or other file con- (vi) Optional preface or summary. In- taining the matter so offered. clusion of a preface or summary in a li- (d) Public document items. Whenever brary reference addressing the matters there is offered in evidence (in whole or set out in paragraphs (b)(2)(iv)(A) in part) a public document, such as an through (H) of this section is encour- official report, decision, opinion or aged but optional. published scientific or economic statis- (vii) Electronic version. Material filed tical data issued by any of the Execu- as a library reference shall also be tive Departments (or their subdivi- made available in an electronic sions), legislative agencies or commit- version, absent a showing of why an tees, or administrative agencies of the electronic version cannot be supplied Federal Government (including Gov- or should not be required to be supplied. Participants are encouraged to ernment-owned corporations) and such include in the electronic version the document (or part thereof) has been information and disclosures required to shown by the offeror thereof to be rea- be included in the accompanying no- sonably available to the public, such tice. document need not be produced or (viii) Number of copies. Except for physically marked for identification, good cause shown, two hard copies of but may be offered in evidence as a each library reference shall be filed. public document item by clearly iden- (ix) Special requests and motions seek- tifying the document and the relevant ing service. In situations other than parts thereof. that covered in paragraph (b)(2)(ii)(A) (e) Designation of evidence from other of this section, special requests for Commission dockets. Participants may service of material contained in a li- request that evidence received in other brary reference may be made by the Commission proceedings be entered participant that filed the interrogatory into the record of the current pro- or inquiry that generated a response in ceeding. These requests shall be made the form of a library reference. Service by motion, shall explain the purpose of shall be made within a reasonable the designation, and shall identify ma- time. Others seeking service of the material by page and line or paragraph terial contained in a library reference number. Absent extraordinary jus- shall file a detailed motion setting tification, these requests must be made forth the reasons why service is nec- at least 28 days before the date for fil- essary or appropriate. ing the participant’s direct case. Oppo- (x) Waiver. Upon the filing of a mo- sitions to motions for designations and/ tion showing good cause, the Commis- or requests for counter-designations sion may waive one or more of the pro- shall be filed within 14 days. Opposi- visions relating to library references. tions to requests for counter-designa- Motions seeking waiver may request tions are due within seven days. At the expedited consideration and may seek time requests for designations and waiver for categories of library references. counter-designations are made, the (xi) Status of library references. Des- moving participant must submit two ignation of material as a library ref- copies of the identified material to the erence and acceptance in the Commis- Secretary of the Commission. sion’s docket section do not confer evi- (f) Form of prepared testimony and ex- dentiary status. The evidentiary status hibits. Unless the presiding officer oth- of the material is governed by this sec- erwise directs, the direct testimony of tion. witnesses shall be reduced to writing (c) Commission’s files. Except as other- and offered either as such or as an ex- wise provided in § 3001.31(e), in case any hibit. All prepared testimony and ex- matter contained in a report or other hibits of a documentary character document on file with the Commission shall, so far as practicable, conform to is offered in evidence, such report or the requirements of § 3001.10(a) and (b).

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(g) Copies to participants. Except as (2) Statistical studies. All statistical otherwise provided in these rules, cop- studies offered in evidence in hearing ies of prepared testimony and exhibits proceedings or relied upon as support shall be furnished to the presiding offi- for other evidence shall include a com- cer and to the participants or counsel, prehensive description of the assump- unless the presiding officer otherwise tions made, the study plan utilized and directs. In addition, unless otherwise the procedures undertaken. Where a directed by the presiding officer, eight computer analysis is employed to ob- copies of all prepared testimony and tain the result of a statistical study, exhibits shall be furnished for the use all of the submissions required by of the Commission. § 3001.31(k)(3) shall be furnished, upon (h) Reception and ruling. The pre- request. In addition, for each of the fol- siding officer shall rule on the admissi- lowing types of statistical studies, the bility of evidence and otherwise con- indicated information should be fur- trol the reception of evidence so as to nished: confine it to the issues in the pro- (i) Market research. (a) The following ceeding. data and information shall be provided: (i) Offers of proof. Any offer of proof (1) A clear and detailed description of made in connection with any ruling of the sample, observational, and data the presiding officer rejecting or ex- preparation designs, including defini- cluding proffered oral testimony shall tions of the target population, sam- consist of a statement of the substance pling frame, units of analysis, and sur- of the evidence which counsel contends vey variables; would be adduced by such testimony; (2) An explanation of methodology and if the excluded evidence consists of for the production and analysis of the evidence in documentary or written major survey estimates and associated form, or of reference to documents or sampling errors; records, a copy of such evidence shall (3) A presentation of response, cov- be marked for identification and shall erage and editing rates, and any other constitute the offer of proof. potential sources of error associated (j) Official notice of facts. Official no- with the survey’s quality assurance tice may be taken of such matters as procedures; might be judicially noticed by the (4) A discussion of data com- courts of the United States or of any parability over time and with other other matter peculiarly within the gen- data sources; eral knowledge of the Commission as (5) An assessment of the effects of ed- an expert body: Provided, That any par- iting and imputation; ticipant shall, on timely request, be af- (6) Identification of applicable statis- forded an opportunity to show the con- tical models, when model-based proce- trary. dures are employed; and (k) Introduction and reliance upon (7) An explanation of all statistical studies and analyses—(1) General. In the tests performed and an appropriate set case of all studies and analyses offered of summary statistics summarizing the in evidence in hearing proceedings or results of each test. relied upon as support for other evi- (ii) Other sample surveys. (a) A clear dence, other than the kinds described description of the survey design, in- in paragraphs (k) (2) and (3) of this sec- cluding the definition of the universe tion, there shall be a clear statement under study, the sampling frame and of the study plan, all relevant assump- units, and the validity and confidence tions and a description of the tech- limits than can be placed on major es- niques of data collection, estimation timates; and and/or testing. In addition, there shall (b) An explanation of the method of be a clear statement of the facts and selecting the sample and the character- judgments upon which conclusions are istics measured or counted. based, together with an indication of (iii) Experimental analyses. (a) A com- the alternative courses of action con- plete description of the experimental sidered. Tabulations of input data shall design, including a specification of the be made available upon request at the controlled conditions and how the con- offices of the Commission. trols were realized;

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(b) A complete description of the (v) All other studies involving statistical methods of making observations and methodology. (a) The formula used for the adjustments, if any, to observed statistical estimates; data. (b) The standard errors of each com- (iv) Econometric Studies. (a) A presen- ponent estimated; tation of the economic theory under- (c) Test statistics and the description lying the study; of statistical tests and all related com- (b) A complete description of the putations, and final results; and econometric model(s) and the reasons (d) Summary descriptions of input for each major assumption and speci- data, and upon request the actual input fication; data shall be made available at the of- (c) The definition of the variables se- fices of the Commission. lected and the justification for their (3) Computer analyses. (i) In the case selection; of computer studies or analyses which (d) For any alternative model whose are being offered in evidence, or relied computed econometric results influ- upon as support for other evidence, a enced the choice of the preferred foundation for the reception of such model, a statement of the reasons for materials must be laid by furnishing a rejecting that alternative, an identi- general description of the program that fication of any differences between includes the objectives of the program, that alternative and the preferred the processing tasks performed, the model with respect to variable defini- methods and procedures employed, and tions, equation forms, data, or esti- a listing of the input and output data mation methods, and, upon request, and source codes (or a showing pursu- the computed econometric results for ant to paragraph (k)(3)(iii) of this sec- that alternative; tion as to why such codes cannot be so (e) A reference to a detailed descrip- furnished) and such description shall be tion in a text, manual, or technical furnished in all cases. For the purpose journal for every econometric tech- of completing such foundation, the fol- nique used in the estimation process lowing additional items shall be and the reasons for selecting the tech- deemed presumptively necessary and nique, or, in the alternative, a descrip- shall be furnished upon request of a tion and analysis of the technique that participant, the Commission, or the is sufficient for a technical evaluation; presiding officer, unless the presump- (f) Summary descriptions and source tion is overcome by an affirmative citations for all input data and, upon showing. request, a complete listing of the data. (a) For all input data, designations of Complete descriptions of any alter- all sources of such data, and expla- ations or transformations made to the nations of any modifications to such data as received from the original data made for use in the program; sources, and the reasons for making (b) Definitions of all input and output the alterations; variables or sets of variables; (g) A complete report of the econo- (c) A description of input and output metric results including, where appli- data file organization; cable: (d) A hard copy of all data bases; (1) coefficient estimates (e) For all source codes, documenta- (2) standard errors and t-values, tion sufficiently comprehensive and de- (3) goodness-of-fit statistics, tailed to satisfy generally accepted (4) other appropriate test statistics, software documentation standards ap- (5) the variance/covariance matrix of propriate to the type of program and the estimates, its intended use in the proceeding; (6) computed residuals for results (f) The source code in hardcopy form; computed from samples composed of (g) All pertinent operating system fewer than 250 observations, and, upon and programming language manuals; request, other computed residuals; and (h) Descriptions of all statistical (h) If the requested program is user tests of hypotheses and the results of interactive, a representative sample such tests; run, together with any explanation

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necessary to illustrate the response se- through (h) of this section are nec- quence. essary to establish the foundation for (i) An expert on the design and oper- reception of the evidence concerned ation of the program shall be provided and must be furnished. at a technical conference to respond to (iii) When the requestor is other than any oral or written questions con- the Commission or the Presiding Offi- cerning information that is reasonably cer, the cost of producing the material necessary to enable independent rep- required in paragraph (k)(3)(i) (d), (f), lication of the program output. Ma- and (g)of this section, shall be borne by chine-readable data files and program the requesting party unless otherwise files shall be provided in the form of a ordered, for good cause shown by the compact disk or other media or method requestor. When the Commission or the approved in advance by the Adminis- Presiding Officer is the requestor, it trative Office of the Postal Rate Com- may assume or equitably allocate such mission. Any machine-readable data costs for good cause shown by the file or program file so provided must be requestee. identified and described in accom- (iv) If the recipient of a request for panying hardcopy documentation. In materials pursuant to this paragraph addition, files in text format must be (k)(3) of this section asserts that com- accompanied by hard-copy instructions pliance with the request would conflict for printing them. Files in machine with patent, copyright, trade secret or code must be accompanied by hardcopy contract rights applicable to the re- instructions for executing them. quested material, the recipient shall (j) Computer simulation models of- immediately notify the requestor and fered in evidence or relied upon as support for other evidence, shall be bound the Presiding Officer. If valid, the Pre- by all applicable provisions of para- siding Officer shall devise means of ac- graph (k)(3) of this section and the sep- commodating such rights. Such means arate requirements of paragraph (k)(2) may include protective orders, includ- of this section, to the extent that por- ing access under protective conditions tions of the simulation model utilize or to the computer facilities of the recipi- rely upon such studies. Information ent of a request, making material that compares the simulation model available for inspection, compensation, output results to the actual phe- or other procedures, according to the nomena being modelled, using data nature of the right affected by compli- other than those from which the model ance with this paragraph (k)(3) of this was developed, shall be separately section. If the Presiding Officer deter- identified and submitted as evidence mines that compensation is necessary supporting the test and validation of to accommodate the affected right, the the simulation model. Separate state- cost of compensation shall be borne in ments concerning the model limita- the same manner that paragraph tions, including limiting model design (k)(3)(iii) of this section prescribes for assumptions and range of data input bearing the costs referenced there. If utilized in model design, shall be pro- such right cannot be accommodated by vided. Where test and validation of the reasonable compensation, or by protec- entire simulation model are not pos- tive orders or other procedures, and, as sible, test and validation information a result, materials required by this shall be provided for disaggregate por- paragraph (k)(3) of this section cannot tions of the model. If disaggregate test- be provided, the Presiding Officer shall ing and validation are not possible, determine, in his/her discretion, wheth- separate statements to that effect and er evidence that relies upon the mate- statements regarding operational ex- rials not provided shall be admissible perts’ review of model validity shall be or afforded limited weight. provided. (4) Expedition. The offeror shall expe- (ii) Upon timely and otherwise proper dite responses to requests made pursu- request of a participant, or sua sponte, ant to this section. Responses shall be the Commission or the Presiding Offi- served on the requesting party, and no- cer may rule that matters other than tice thereof filed with the Secretary in those listed in paragraphs (k)(3)(i) (a) accordance with the provisions of

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§ 3001.12, no later than 14 days after a the proceeding, the notation ‘‘In Cam- request is made. era Record under § 3001.31a,’’ and the date on which in camera treatment ex- [36 FR 396, Jan. 12, 1971, as amended at 45 FR pires. 65580, Oct. 3, 1980; 47 FR 12796, Mar. 25, 1982; 50 FR 43392, Oct. 25, 1985; 51 FR 8827, Mar. 14, (c) Release of in camera information. In 1986; 51 FR 14992, Apr. 22, 1986; 54 FR 35494, camera documents and testimony shall Aug. 28, 1989; 58 FR 38976, July 21, 1993; 62 FR constitute a part of the confidential 45729, Aug. 29, 1997; 64 FR 67490, Dec. 2, 1999; records of the Commission and shall be 65 FR 6543, Feb. 10, 2000; 67 FR 67563, Nov. 6, subject to the provisions of § 3001.42 of 2002] this chapter. However, the Commis- sion, on its own motion or pursuant to § 3001.31a In camera orders. a request, may make in camera docu- (a) Definition. Except as hereinafter ments and testimony available for in- provided, documents and testimony spection, copying, or use by any other made subject to in camera orders are governmental agency. The Commission not made a part of the public record, shall, in such circumstances, give rea- but are kept confidential, and only au- sonable notice of the impending disclo- thorized parties, their counsel, author- sure to the affected party. However, ized Commission personnel, and court such notice may be waived in extraor- personnel concerned with judicial re- dinary circumstances for good cause. view shall have access thereto. The (d) Briefing of in camera information. right of the presiding officer, the Com- In the submittal of proposed findings, mission, and reviewing courts to dis- briefs, or other papers, counsel for all close in camera data to the extent nec- parties shall make a good faith at- essary for the proper disposition of the tempt to refrain from disclosing the proceeding is specifically reserved. specific details of in camera documents (b) In camera treatment of documents and testimony. This shall not preclude and testimony. Presiding officers shall references in such proposed findings, have authority, but only in those un- briefs, or other papers to such docu- usual and exceptional circumstances ments or testimony including general- when good cause is found on the record, ized statements based on their con- to order documents or oral testimony tents. To the extent that counsel con- offered in evidence whether admitted sider it necessary to include specific or rejected, to be placed in camera. The details of in camera data in their pres- order shall specify the date on which in entations, such data shall be incor- camera treatment expires and shall in- porated in separate proposed findings, clude: (1) A description of the docu- briefs, or other papers marked ‘‘con- ments and testimony; (2) a full state- fidential,’’ which shall be placed in ment of the reasons for granting in camera and become a part of the in cam- camera treatment; and (3) a full state- era record. ment of the reasons for the date on [44 FR 33880, June 13, 1979, as amended at 48 which in camera treatment expires. Any FR 15901, Apr. 13, 1983; 58 FR 38976, July 21, party desiring, for the preparation and 1993] presentation of the case, to disclose in camera documents or testimony to ex- § 3001.32 Appeals from rulings of the perts, consultants, prospective wit- presiding officer. nesses, or witnesses, shall make appli- (a) General policy. The Commission cation to the presiding officer setting will not review a ruling of the pre- forth the justification therefor. The siding officer prior to its consideration presiding officer, in granting such ap- of the entire proceeding except in ex- plication for good cause found, shall traordinary circumstances. This sec- enter an order protecting the rights of tion specifies the showing which par- the affected parties and preventing un- ticipants must make in order to appeal necessary disclosure of information. In interlocutory rulings. camera documents and the transcript of (b) Appeals certified by the presiding of- testimony subject to an in camera order ficer. (1) Before the issuance of an ini- shall be segregated from the public tial decision pursuant to § 3001.39(a) or record and filed in a sealed envelope, the certification of the record to the bearing the title and docket number of Commission pursuant to § 3001.38(a),

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rulings of the presiding officer may be (2) Where the presiding officer has de- appealed when the presiding officer clined to certify an appeal, the Com- certifies in writing that an interlocu- mission will not allow an application tory appeal is warranted. The presiding for review unless it determines (i) that officer shall not certify an appeal un- the presiding officer should have cer- less the officer finds that (i) the ruling tified the matter, (ii) that extraor- involves an important question of law dinary circumstances exist, and (iii) or policy concerning which there is that prompt Commission decision is substantial ground for difference of necessary to prevent grave detriment opinion and (ii) an immediate appeal to the public interest. from the ruling will materially ad- (3) The Commission may issue an vance the ultimate termination of the order accepting an interlocutory ap- proceeding or subsequent review will be peal within 15 days after the presiding an inadequate remedy. officer certifies the appeal or a participant files an application for review. If (2) A request for the presiding officer the Commission fails to issue such an to certify an appeal shall be made order, leave to appeal from the pre- within 5 days after the presiding offi- siding officer’s interlocutory ruling cer’s ruling has been issued. The re- shall be deemed to be denied. If the quest shall set forth with specificity Commission issues an order accepting the reasons that a participant believes an appeal, it may rule upon the merits that an appeal meets the criteria of of the appeal in that order or at a later paragraphs (b)(1) (i) and (ii) of this sec- time. tion. Such requests shall also state in (e) Effect of appeals. Unless the pre- detail the legal, policy, and factual ar- siding officer or the Commission so or- guments supporting the participant’s ders, the certification of an appeal or position that the ruling should be the filing of an application for review modified. If the appeal is from a ruling shall not stay the proceeding or the ef- rejecting or excluding evidence, such fectiveness of any ruling. request shall include a statement of (f) Review at conclusion of proceeding. the substance of the evidence which If an interlocutory appeal is not al- the participant contends would be ad- lowed or requested, objection to the duced by the excluded evidence and the ruling may be raised on review of the conclusions intended to be derived presiding officer’s initial decision, or, therefrom. if the initial decision is omitted, at the (3) The presiding officer may request conclusion of the proceeding. responsive pleadings from other par- (g) Form, filing, and service of docu- ticipants prior to ruling upon the re- ments. Requests for certification, appli- quest to certify an appeal. cations for review, and any responses (c) Appeals not certified by the pre- shall be in writing and shall be in con- siding officer. If the presiding officer de- formity with §§ 3001.10 and 3001.11. They clines to certify an appeal, a partici- shall be filed and served pursuant to pant who has requested certification §§ 3001.9 and 3001.12. may apply to the Commission for re- [38 FR 4328, Feb. 13, 1973, as amended at 42 view within 10 days. Unless the Com- FR 8143, Feb. 9, 1977; 51 FR 8827, Mar. 14, 1986] mission directs otherwise, its review of the application will be based on the § 3001.33 Depositions. record and pleadings filed before the (a) When permissible. The testimony presiding officer pursuant to paragraph of a witness may be taken by deposi- (b) of this section. tion upon authorization by the Com- (d) Action by the Commission. (1) The mission or the presiding officer on ap- Commission may dismiss an appeal plication of any participant before the certified by the presiding officer if it hearing is closed. An authorization to determines that (i) the objection to the take the deposition of a witness will be ruling should be deferred until the issued only if (1) the person whose dep- Commission’s consideration of the en- osition is to be taken would be unavail- tire proceeding or (ii) interlocutory re- able at the hearing, or (2) the deposi- view is otherwise not warranted or ap- tion is deemed necessary to perpetuate propriate under the circumstances. the testimony of the witness, or (3) the

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taking of the deposition is necessary to with the number of copies required by prevent undue and excessive expense to the authorization to be made by such a participant and will not result in officer, shall be forwarded by the offi- undue delay or an undue burden to cer to the Secretary by personal deliv- other participants. ery or registered mail. Upon receipt (b) Application. An application for au- the Secretary shall hold the original thorization to take testimony by depo- for use in the hearing upon request by sition shall be filed in duplicate with any participant and shall make copies the Commission or the presiding officer available for public inspection. and shall state (1) the name, identifica- (f) Scope and conduct of examination. tion, and post office address of the wit- Unless otherwise directed in the au- ness, (2) the subject matter of the testi- thorization, the witness may be ques- mony, (3) the time and place of taking tioned regarding any matter which is the deposition, (4) the name, identifica- relevant to the issues involved in the tion, and post office address of the offi- proceeding. Participants shall have the cer before whom the deposition is to be right of cross-examination and objec- taken, and (5) the reasons why the tes- tion. In lieu of participation in the oral timony of such witness should be taken examination, participants may trans- by deposition. mit written interrogatories to the offi- (c) Authorization. If the application so cer who shall propound them to the warrants, the Commission or the pre- witness. siding officer will issue and serve or (g) Objections. The officer before cause to be served on the participants whom the deposition is taken shall not within a reasonable time in advance of have the power to rule upon procedural the time fixed for taking testimony, an matters or the competency, materi- authorization for the taking of such ality, or relevancy of questions. Proce- testimony by deposition. Such author- dural objections or objections to ques- ization shall name the witness, and the tions of evidence shall be stated briefly time, place, and officer before whom and recorded in the deposition without the deposition shall be taken, and shall argument. Objections not stated before specify the number of copies of the dep- the officer shall be deemed waived. osition to be submitted to the Commis- (h) When a part of the record. No por- sion. The authorization may include tion of a deposition shall constitute a such terms and conditions as the Com- part of the record in the proceeding un- mission or the presiding officer deems less received in evidence by the pre- fair and reasonable. siding officer. If only a portion of the (d) Qualifications of officer before deposition is offered in evidence by a whom taken. Such deposition may be participant, any other participant may taken before a presiding officer or require him/her to introduce all of it other authorized representative of the which is relevant to the part intro- Commission, or any officer, not being duced, and any participant may offer in counsel or attorney for any participant evidence any other portions. or having an interest in the proceeding, (i) Fees. Witnesses whose depositions authorized to administer oaths by the are taken and the officer taking the laws of the United States or of the same shall be entitled to the same fees place where the deposition is to be as are paid for like services in the Dis- taken. trict Courts of the United States to be (e) Oath and reduction to writing. The paid directly by the participant or par- officer before whom the deposition is ticipants on whose application the dep- to be taken shall put the witness on osition was taken. oath or affirmation and shall person- [36 FR 396, Jan. 12, 1971, as amended at 58 FR ally, or by some one acting under his/ 38976, July 21, 1993; 58 FR 38976, July 21, 1993] her direction and in his/her presence, record the examination of the witness. § 3001.34 Briefs. The examination shall be transcribed (a) When filed. At the close of the in the form specified in § 3001.10(a), taking of testimony in any proceeding, signed by the witness, and certified in the Commission or the presiding officer the usual form by the officer. The shall fix the time for the filing and original of the deposition, together service of briefs, giving due regard to

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the timely issuance of a recommended (c) Incorporation by references. Briefs decision or advisory opinion to the before the Commission or a presiding Postal Service within the contempla- officer shall be completely self-con- tion of sections 3641(a) and 3661 of the tained and shall not incorporate by ref- Act. In addition, subject to such con- erence any portion of any other brief, sideration, due regard shall be given to pleading or document. the nature of the proceeding, the com- (d) Excerpts from the record. Testi- plexity and importance of the issues in- mony and exhibits shall not be quoted volved, and the magnitude of the or included in briefs except for short record. In cases subject to a limitation excerpts pertinent to the argument on the time available to the Commis- presented. sion for decision, the Commission shall generally direct that each participant (e) Filing and service. Briefs shall be shall file a single brief at the same filed in the form and manner and time. In cases where, because of the na- served as required by §§ 3001.9 to 3001.12. ture of the issues and the record or the [36 FR 396, Jan. 12, 1971, as amended at 38 FR limited number of participants in- 4328, Feb. 13, 1973; 51 FR 8827, Mar. 14, 1986] volved, the filing of initial and reply briefs, or the filing of initial, answer- § 3001.35 Proposed findings and con- ing, and reply briefs, will not unduly clusions. delay the conclusion of the proceeding The Commission or the presiding of- and will aid in the proper disposition of ficer may direct the filing of proposed the proceeding, the participants may findings and conclusions with a brief be directed to file more than one brief statement of the supporting reasons for and at different times rather than a each proposed finding and conclusion. single brief at the same time. The presiding officer or the Commission may [38 FR 4329, Feb. 13, 1973; 51 FR 8827, Mar. 14, also order the filing of briefs during the 1986] course of the proceeding. (b) Contents. Each brief filed with the § 3001.36 Oral argument before the Commission shall be as concise as pos- presiding or other designated offi- sible, within any page limitation speci- cer. fied by the Commission or the pre- In any case in which the presiding of- siding officer, and shall include the fol- ficer is to issue an initial or rec- lowing in the order indicated: ommended decision, or another des- (1) A subject index with page ref- ignated officer of the Commission is to erences, and a list of all cases and au- issue a recommended decision, such of- thorities relied upon, arranged alpha- ficer may permit the presentation of betically, with references to the pages oral argument when, in his/her opinion, where the citation appears; time permits, and the nature of the (2) A concise statement of the case proceedings, the complexity or impor- from the viewpoint of the filing partic- tance of the issues of fact or law in- ipant; volved, and the public interest war- (3) A clear, concise and definitive rants hearing such argument. Such of- statement of the position of the filing ficer shall determine the time and participant as to the proposals of the place for oral argument. He may speci- Postal Service, the subject matter of the complaint, or recommended deci- fy the issue or issues on which oral ar- sion, advisory opinion, or public report gument is to be presented, the order in to be issued; which the presentations shall be made, (4) A discussion of the evidence, rea- and the amount of time allowed each sons, and authorities relied upon with participant. A request for oral argu- exact references to the record and the ment before the issuance of an inter- authorities; and mediate decision shall be made during (5) Proposed findings and conclusions the course of the hearing on the record. with appropriate references to the [36 FR 396,Jan. 12, 1971, as amended at 58 FR record or the prior discussion of the 38976, July 21, 1993] evidence and authorities relied upon.

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§ 3001.37 Oral argument before the record to the Commission and omit any Commission. intermediate decision upon a finding (a) When ordered. In any proceeding on the record that due and timely exe- before the Commission for decision, the cution of its functions imperatively Commission, upon the request of any and unavoidably so requires. In pro- participant or on its own initiative, ceedings in which all participants con- may order oral argument when, in the cur in a request by any participant Commission’s discretion, time permits, that any intermediate decision be and the nature of the proceedings, the omitted, the Commission shall direct complexity or importance of the issues the certification of the record to the of fact or law involved, and public in- Commission and forthwith render a terest warrants such argument. final decision unless the Commission (b) How requested. Any participant in denies such request within 10 days next a proceeding before the Commission for following its filing or referral by the decision may request oral argument be- presiding officer. fore the Commission by filing a timely (b) Requests for omission. Requests for motion pursuant to § 3001.21. In a pro- omission of the intermediate decision ceeding before the Commission on ex- in any proceeding shall be made by mo- ceptions to an intermediate decision, tion pursuant to § 3001.21 or made oral- such motion shall be filed no later than ly on the record before the presiding of- the date for the filing of briefs on ex- ficer who shall promptly refer the same ceptions. Motions requesting oral argu- to the Commission. Such requests shall ment may be included in briefs or specify (1) the concurrence of other briefs on exceptions or in a separate parties and (2) whether opportunity for document. filing briefs or presenting oral argu- (c) Notice of oral argument. The Com- ment to the Commission is desired or mission shall rule on requests for oral waived. Failure of any party to object argument, and if argument is allowed, to such request shall constitute a waiv- the Commission shall notify the par- er of any objections. ticipants of the time and place set for argument, the amount of time allowed § 3001.39 Intermediate decisions. each participant, and the issue or (a) Initial decision by presiding officer. issues on which oral argument is to be In any proceedings in which a Commis- heard. Unless otherwise ordered by the sioner or hearing officer has presided Commission, oral argument shall be at the reception of evidence, such pre- limited to matters properly raised on siding officer, as soon as practicable the record and in the briefs before the after the conclusion of the hearing and Commission. the filing of briefs, shall certify and (d) Use of documents at oral argument. file with the Secretary, a copy of the Charts, graphs, maps, tables and other record of the hearing and his/her initial written material may be presented to decision on the matters and issues pre- the Commission at oral argument only sented for decision in such proceeding. if limited to facts in the record of the (b) Tentative decision. Prior to the case being argued and if copies of such issuance of an initial decision by the documents are filed with the Secretary presiding officer, the Commission, with and served on all parties at least 7 days notice to the participants or by order in advance of the argument. Enlarge- in specific cases or by general rule for ments of such charts, graphs, maps and a class of cases, may direct the certifi- tables may be used at the argument cation of the record to the Commission provided copies are filed and served as for the purpose of the issuance of a ten- required by this paragraph. tative decision. In such cases, the Com- mission may issue a tentative decision § 3001.38 Omission of intermediate de- or require that the presiding officer or cisions. any designated responsible officer of (a) Basis of omission. In any pro- the Commission recommend a decision. ceeding noticed pursuant to § 3001.17, (c) Contents. All intermediate deci- the Commission, on the motion of any sions (initial, recommended or ten- participant or on its own initiative, tative) shall include (1) findings and may direct the certification of the conclusions, and the reasons or basis

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therefor, on all the material issues of § 3001.40 Exceptions to intermediate fact, law, or discretion presented on decisions. the record, and (2) the appropriate rec- (a) Briefs on exceptions and opposing ommended decision, advisory opinion exceptions. Any participant in a pro- or public report pursuant to the Act. ceeding may file exceptions to any in- An intermediate decision in a pro- termediate decision by filing a brief on ceeding under section 3622 or 3623 of the exceptions with the Commission within Act shall include a statement specifi- 30 days after the date of issuance of the cally responsive to the criteria estab- intermediate decision or such other lished under section 3622 or 3623 of the time as may be fixed by the Commis- Act, as the case may be; and an inter- sion. Any participant to a proceeding mediate decision in a proceeding under may file a response to briefs on excep- section 3661 of the Act shall include a tions within 20 days after the time lim- determination of the question of ited for the filing of briefs on excep- whether or not the proposed change in tions or such other time as may be the nature of postal service conforms fixed by the Commission. No further to the policies established under the response will be entertained unless the Act. Commission, upon motion for good (d) Service and Commission review. All cause shown or on its own initiative, so intermediate decisions shall be part of orders. the record, shall be served on the par- (b) Filing and contents. Briefs on ex- ticipants to the proceeding by the Sec- ceptions and briefs opposing exceptions retary pursuant to § 3001.12 and shall be shall be filed in accordance with subject to review by the Commission § 3001.34. In briefs on exceptions, the on its own initiative, or the filing of discussion of evidence, reasons and authorities shall be specifically directed exceptions by the participants pursu- to the findings, conclusions and rec- ant to § 3001.40. ommendations in the intermediate de- (e) Unavailability of presiding officer. cision to which exception is taken. In any proceeding in which the inter- Briefs on exceptions should not include mediate decision is not omitted pursu- a discussion of evidence and authori- ant to § 3001.38, if a presiding officer be- ties on matters and issues to which no comes unavailable to issue an inter- exception to the intermediate decision mediate decision on a timely basis, the is taken. Briefs on exceptions and Commission shall, by a notice served briefs opposing exceptions need not on the participants require the record contain a statement of the case to the to be certified to it and it shall either extent that it was correctly stated in designate a qualified responsible officer either the intermediate decision or the of the Commission to issue a rec- brief on exceptions of another partici- ommended decision or will itself issued pant to which reference is made. a tentative decision, as the Commis- (c) Failure to except results in waiver. sion may deem appropriate. Any participant who fails to except or (f) Effect of intermediate decision. Un- object to any part of an intermediate less briefs on exceptions are filed to an decision in its brief on exceptions may intermediate decision pursuant to not thereafter raise such exceptions or § 3001.40 or unless the Commission objections which shall be deemed to issues an order to review an inter- have been waived. mediate decision on its own initiative, (84 Stat. 759–761, 764; 39 U.S.C. 3603, 3622–3624, the intermediate decision shall become 3661, 3662) the final action of the Commission after 30 days from the date of issuance [36 FR 396, Jan. 12, 1971, as amended at 38 FR 4329, Feb. 13, 1973] thereof. If briefs on exceptions are timely filed or the Commission initi- § 3001.41 Rulemaking proceedings. ates review on its own motion, the in- (a) General notice. Before the adoption termediate decision is stayed until fur- of any rule of general applicability, or ther order of the Commission. the commencement of any hearing on [36 FR 396, Jan. 12, 1971, as amended at 58 FR any such proposed rulemaking, the 38976, July 21, 1993] Commission will cause general notice

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to be given by publication in the FED- erty, loans, grants, benefits, or con- ERAL REGISTER, such notice to be pub- tracts. lished therein not less than 30 days (84 Stat. 759–761, 764; 39 U.S.C. 3603, 3622–3624, prior to the date fixed for the consider- 3661, 3662) ation of the adoption of a proposed rule [36 FR 396, Jan. 12, 1971, as amended at 38 FR or rules or for the commencement of 4329, Feb. 13, 1973] the hearing, if any, on the proposed rulemaking, except where a shorter pe- § 3001.42 Public information and re- riod is reasonable and good cause exists quests. therefor. However, where the Commis- This section prescribes the rules gov- sion, for good cause, finds it impracti- erning: Publication of recommended cable, unnecessary, or contrary to the decisions, advisory opinions, and public public interest to give such notice, it reports; and records of the Commis- may proceed with the adoption of rules sion. without notice by incorporating there- (a) Notice and publication. Service of in a finding to such effect and a concise intermediate and recommended deci- statement of the reasons therefor. Ad- sions, advisory opinions and public re- vance notice shall not be required for ports upon parties to the proceedings is rules subject to 5 U.S.C. 553(d). provided for in §§ 3001.12(c) and (b) Contents of notice. The notice shall 3001.39(d). Descriptions of the Commis- include (1) a statement of the time, sion’s organization, its methods of op- place and nature of the public rule- eration, statements of policy and inter- making proceedings; (2) reference to pretations, procedural and substantive rules, and amendments thereto will be the legal authority under which the filed with and published in the FED- rule is proposed; and (3) either the ERAL REGISTER, and are available on terms or substance of the proposed rule the Commission’s Web site, http:// or a description of the subjects and www.prc.gov. Commission rec- issues involved. ommended decisions, advisory opinions (c) Participation. After notice given as and public reports, orders, and inter- provided in paragraph (a) of this sec- mediate decisions will be released to tion, the Commission shall give inter- the press and made available to the ested persons an opportunity to par- public promptly by posting on the ticipate in the rulemaking through Commission’s Web site. submission of written data, views, or (b) Public records. Except as provided arguments with or without opportunity in § 3001.31a of this chapter, the public for oral presentation. records of the Commission include: (d) General statement as to basis and (1) All submittals and filings as fol- purpose. After consideration of the rel- lows: evant matter presented, the Commis- (i) Requests of the Postal Service for sion shall incorporate in the rules recommended decisions or advisory adopted a concise general statement of opinions, public reports, complaints their basis and purpose. (both formal and informal), and other papers seeking Commission action; (e) Exceptions. Except when notice or (ii) Financial, statistical and other hearing is required by statute, the reports to the Commission, and other Commission may issue at any time filings and submittals to the Commis- rules of organization, procedure or sion in compliance with the require- practice, or interpretive rules, or statements of any statute, Executive order, ments of policy, without notice or pub- or Commission rule, regulation, or lic procedure, and this section is not to order; be construed as applicable to the ex- (iii) All answers, replies, responses, tent that there may be involved any objections, protests, motions, stipula- military, naval or foreign affairs functions, exceptions, other pleadings, no- tion of the United States, or any mat- tices, depositions, certificates, proofs ter relating to the Commission’s man- of service, transcripts, and briefs in agement or personnel, or to U.S. prop- any matter or proceeding;

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(iv) All exhibits, attachments and ap- publication by that Office or the Com- pendices to, amendments and correc- mission or Member of Congress in- tions of, supplements to, or transmit- volved. tals or withdrawals of, any of the fore- (9) Commission correspondence on going; the interpretation or applicability of (v) Any Commission correspondence any statute, rule, regulation, rec- relating to any of the foregoing. ommended decision, advisory opinion, (2) All other parts of the formal or public report issued or administered record in any matter or proceeding set by the Commission and letters of opin- for formal or statutory hearing and ion on that subject signed by the Gen- any Commission correspondence re- eral Counsel and sent to others than lated thereto. ‘‘Formal record’’ in- the Commission, a Commissioner, or cludes in addition to all the filings and any of the staff. submittals, any notice or Commission (10) Copies of all filings by the Com- order initiating the matter or pro- mission, and all orders, judgments, de- ceeding, and, if a hearing is held, the crees, and mandates directed to the following: the designation of the pre- Commission in Court proceedings in- siding officer, transcript of hearings, volving Commission action and all cor- all exhibits received in evidence, offers respondence with the courts or clerks of proof, motions, stipulations, proofs of court. of service, referrals to the Commission, and determination made by the Com- (11) The Commission’s administrative mission thereon, certifications to the and operating manuals as issued. Commission, and anything else upon (12) All other records of the Commis- which action of the presiding officer or sion except for those that are: the Commission may be based; it does (i)(a) Specifically authorized under not include any unaccepted offer of set- criteria established by an Executive tlement made by a party in the course order to be kept secret in the interest of a proceeding and not formally sub- of national defense or foreign policy mitted to the Commission. and (b) are in fact properly classified (3) Any proposed testimony or ex- pursuant to such Executive order; hibit filed with the Commission but (ii) Related solely to the internal per- not yet offered or received in evidence. sonnel rules and practices of the Com- (4) All presiding officer actions and mission; all presiding officer correspondence (iii) Specifically exempted from dis- and memoranda to or from others ex- closure by statute; cept within his own office. (iv) Trade secrets and commercial or (5) All Commission orders, notices, financial information obtained from a findings, determinations, and other ac- person and privileged or confidential; tions in any matter or proceeding and (v) Interagency or intra-agency all Commission minutes which have memoranda or letters which would not been approved. be available by law to a party other (6) All Commission correspondence than an agency in litigation with the relating to any furnishing of data or Commission; information by the Postal Service. (7) Commission correspondence with (vi) Personnel and medical files and respect to the furnishing of data, infor- similar files, the disclosure of which mation, comments, or recommenda- would constitute a clearly unwarranted tions to or by another branch, depart- invasion of personal privacy. ment, or agency of the Government (vii) Investigatory records compiled where furnished to satisfy a specific re- for law enforcement purposes, to the quirement of a statute or where made extent specified in 5 U.S.C. 552(b)(7). public by that branch, department or (13) The following are examples of in- agency. formation which is not part of the pub- (8) Commission correspondence and lic records of the Commission: reports on legislative matters under (i) Written communications between consideration by the Office of Manage- or among the Commission, members of ment and Budget or Congress but only the Commission, the Secretary, and ex- if and after made public or released for pressly designated members of the staff

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while particularly assigned, in accord- attempting to observe, or to record or ance with all applicable legal require- photograph, the Commission meeting. ments, to aid the Commission in the (b) Physical arrangements for open drafting of any recommended decision, meetings. The Secretary shall be re- advisory opinion or public report and sponsible for seeing that ample space, findings, with or without opinion, or sufficient visibility, and adequate report in any matter or proceeding; acoustics are provided for public obser- (ii) Unaccepted offers of settlement vation of the Commission meetings. in any matter or proceeding unless or (c) Closed Commission meetings. Except until made public by act of the offeror. in a case where the Commission finds (c) Procedure in event of subpoena. If that the public interest requires other- an officer or employee of the Commis- wise, the second sentence of paragraph sion is served with a subpoena duces (a) shall not apply to any portion of a tecum, material which is not part of Commission meeting, and the require- the public files and records of the Com- ments of paragraphs (d) and (e) shall mission shall be produced only as au- not apply to any information per- thorized by the Commission. Service of taining to such meeting otherwise re- such a subpoena shall immediately be quired by this section to be disclosed to reported to the Commission with a the public, where the Commission prop- statement of all relevant facts. The erly determines that such portion or Commission will thereupon enter such portions of its meetings or the disclo- order or give such instructions as it sure of such information is likely to deems advisable. (1) Disclose matters that are (i) spe- (84 Stat. 759–761, 764; 39 U.S.C. 3603, 3622–3624, cifically authorized under criteria es- 3661, 3662) tablished by an Executive order to be kept secret in the interests of national [38 FR 4329, Feb. 13, 1973, as amended at 40 defense or foreign policy and (ii) in fact FR 6972, Feb. 18, 1975; 42 FR 25729, May 19, 1977; 44 FR 33881, June 13, 1979; 52 FR 13443, properly classified pursuant to such 13444, Apr. 23, 1987; 58 FR 38976, July 21, 1993; Executive order; 64 FR 58337, Oct. 29, 1999; 67 FR 67563, Nov. 6, (2) Relate solely to the internal per- 2002] sonnel rules and practices of the Com- mission; § 3001.43 Public attendance at Com- (3) Disclose matters specifically ex- mission meetings. empted from disclosure by statute (a) Open Commission meetings. (1) (other than section 552 of title 5), pro- Commissioners shall not jointly con- vided that such statute (i) requires duct or dispose of agency business that the matter be withheld from the other than in accordance with this sec- public in such a manner as to leave no tion. Except as provided in paragraph discretion on the issue, or (ii) estab- (c) of this section, every portion of lishes particular criteria for with- every meeting of the Commission shall holding or refers to particular types of be open to public observation. Access matters to be withheld; to documents being considered at Com- (4) Disclose trade secrets and commission meetings shall be obtained in mercial or financial information ob- the manner set forth in § 3001.42. tained from a person and privileged or (2) Members of the public may not confidential; participate in open meetings. They (5) Involve accusing any person of a may record the proceedings, provided crime, or formally censuring any per- they use battery-operated recording de- son; vices at their seats. Cameras may be (6) Disclose information of a personal used by observers to photograph pro- nature where disclosure would con- ceedings, provided it is done from their stitute a clearly unwarranted invasion seats and no flash or lighting equip- of personal privacy; ment is used. Persons may electroni- (7) Disclose investigatory records cally record or photograph a meeting, compiled for law enforcement purposes, as long as such activity does not im- or information which if written would pede or disturb the members of the be contained in such records, but only Commission in the performance of to the extent that the production of their duties, or members of the public such records or information would (i)

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interfere with enforcement proof this section, or with respect to any ceedings, (ii) deprive a person of a right information which is proposed to be to a fair trial or an impartial adjudica- withheld under paragraph (c) of this tion, (iii) constitute an unwarranted section. A single vote may be taken invasion of personal privacy, (iv) dis- with respect to a series of meetings, a close the identity of a confidential portion or portions of which are pro- source and, in the case of a record composed to be closed to the public, or piled by a criminal law enforcement with respect to any information con- authority in the course of a criminal cerning such series of meetings, so long investigation, or by an agency con- as each meeting in such series involves ducting a lawful national security in- the same particular matters and is telligence investigation, confidential scheduled to be held no more than 30 information furnished only by the con- days after the initial meeting in such fidential source, (v) disclose investiga- series. The vote of each Commissioner tive techniques and procedures, or (vi) participating in such vote shall be re- endanger the life or physical safety of corded and no proxies shall be allowed. law enforcement personnel; (2) Whenever any person whose inter- (8) Disclose information contained in ests may be directly affected by a por- or related to examination, operating, tion of a meeting requests that the or condition reports prepared by, on be- Commission close such portion to the half of, or for the use of an agency re- public for any of the reasons referred sponsible for the regulation or super- to in paragraph (c) (5), (6), or (7) of this vision of financial institutions; section, the Commission upon request (9) Disclose information the pre- of any one of its members, shall vote mature disclosure of which would be by recorded vote whether to close such likely to significantly frustrate imple- meeting. mentation of a proposed Commission action, except that paragraph (c)(9) (3) Within 1 day of any vote taken shall not apply in any instance where pursuant to paragraph (d)(1) or (2) of the Commission has already disclosed this section, the Commission shall to the public the content or nature of make publicly available a written copy its proposed action, or where the Com- of such vote reflecting the vote of each mission is required by law to make member on the question. If a portion of such disclosure on its own initiative a meeting is to be closed to the public, prior to taking final Commission ac- the Commission shall, within 1 day of tion on such proposal; or the vote taken pursuant to paragraph (10) Specifically concern the Commis- (d)(1) or (2) of this section, make pub- sion’s issuance of a subpoena or the licly available a full written expla- Commission’s participation in a civil nation of its action closing the portion action or proceeding, an action in a together with a list of all persons ex- foreign court or international tribunal, pected to attend the meeting and their or an arbitration, or the initiation, affiliation. conduct or disposition by the Commis- (4) Any person may protest a Com- sion of a particular case of formal mission decision to hold a closed meet- Commission adjudication pursuant to ing under paragraph (d)(1) or (2) of this the procedures in section 554 of title 5 section by filing a motion to open the or otherwise involving a determination meeting. Such motion shall be ad- on the record after opportunity for a dressed to the Commission and shall hearing as provided by section 3624(a) set forth with particularity the statu- of title 39. tory or other authority relied upon, (d) Procedures for closing meetings. (1) the reasons for which the movant be- Action under paragraph (c) of this sec- lieves the meeting should not be tion shall be taken only when three closed, and the reasons for which the Commissioners vote to take such ac- movant believes that the public inter- tion. A separate vote of the Commis- est requires the meeting to be open. sioners shall be taken with respect to Such motion shall be filed with the each agency meeting a portion or por- Secretary no later than 24 hours prior tions of which are proposed to be closed to the time for which the closed meet- to the public pursuant to paragraph (c) ing is scheduled.

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(5) The Commission has determined open or close a meeting, or a portion of that a majority of its meetings may be a meeting, to the public, may be closed to the public pursuant to para- changed following the public announce- graph (c)(4), (8) or (10) of this section or ment required by paragraph (e)(1) only any combination thereof. Therefore, if (i) three Commissioners determine pursuant to 5 U.S.C. 552b(d)(4), Com- by a recorded vote that Commission mission meetings shall be closed to the business so requires and that no earlier public pursuant to paragraph (c)(4), (8) announcement of the change was pos- or (10) of this section or any combina- sible, and (ii) the Commission publicly tion thereof when three Commissioners announces such change and the vote of vote by recorded vote at the beginning each Commissioner upon such change of such meeting, or portion thereof, to at the earliest practicable time. close the exempt portion or portions of (3) Immediately following each public the meeting, and a copy of such vote, announcement required by paragraph reflecting the vote of each Commis- (e) of this section, notice of the time, sioner on the question, is made available to the public. The provisions of place, and subject matter of a meeting, paragraphs (d) (1), (2), (3), and (e) of whether the meeting is open or closed, this section shall not apply to any por- any change in one of the preceding, and tion of a meeting to which paragraph the name and phone number of the offi- (d)(5) of this section applies: Provided, cial designated by the Commission to that the Commission shall, except to respond to requests for information the extent that such information is ex- about the meeting, shall also be sub- empt from disclosure under the provi- mitted for publication in the FEDERAL sions of paragraph (c) of this section, REGISTER. provide the public with public an- (4) The public announcement re- nouncement of the time, place, and quired by this section may consist of subject matter of the meeting and of the Secretary: each portion thereof at the earliest (i) Publicly posting a copy of the doc- practicable time. ument in the office of the Secretary of (e) Scheduling and public announce- the Commission at 1333 H Street, NW., ment. (1) In the case of each meeting, Suite 300, Washington, DC 20268–0001; the Commission shall make public an- (ii) Mailing a copy to all persons nouncement, at least 1 week before the whose names are on a mailing list meeting, of the time, place, and subject maintained for this purpose; matter of the meeting, whether it is to (iii) Operating a recorded telephone be open or closed to the public, and the announcement, giving the announce- name and phone number of the official ment; and designated by the Commission to re- (iv) Any other means which the Sec- spond to requests for information retary believes will serve to further in- about the meeting. Such announcement shall be made unless three Com- form any persons who might be inter- missioners determine by a recorded ested. vote that Commission business re- (f) Certification of closed meetings; quires that such meeting be called at transcripts, electronic recordings, and an earlier date, in which case the Com- minutes. (1) Before any meeting to be mission shall make public announce- closed pursuant to paragraphs (c) (1) ment of the time, place, and subject through (10) of this section, the Gen- matter of such meeting, and whether eral Counsel of the Commission, or in open or closed to the public, at the ear- the General Counsel’s absence, the sen- liest practicable time. ior advisory staff attorney available, (2) The time or place of a meeting should publicly certify that, in his/her may be changed following the public opinion, the meeting may be closed to announcement required by paragraph the public and shall state each relevant (e)(1) of this section only if the Com- exemptive provision. A copy of such mission publicly announces such certification, together with a state- change at the earliest practicable time. ment from the presiding officer of the The subject matter of a meeting, or the meeting setting forth the time and determination of the Commission to place of the meeting, and the persons

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present, shall be retained by the Com- of a matter which it has earlier decided mission. The Commission shall main- to close. tain a complete transcript or elec- (ii) Such requests shall be captioned tronic recording adequate to record ‘‘Request to open lllll (date) Com- fully the proceedings of each meeting, mission meeting on item lllll or portion of a meeting, closed to the (number or description).’’ The request public, except that in the case of a shall state the reason(s) therefor, the meeting, or portion of a meeting, name and address of the person making closed to the public pursuant to para- the request and, if desired, a telephone graph (c)(8) or (10) of this section, the number. Commission shall maintain either such (iii) Ten copies of such requests must a transcript or recording, or a set of be received by the office of the Sec- minutes. Such minutes shall fully and retary no later than three working clearly describe all matters discussed days after the issuance of the notice of and shall provide a full and accurate meeting to which the request pertains. summary of any actions taken, and the Requests received after that time will reasons therefor, including a descrip- be returned to the requester with a tion of the views expressed on any item statement that the request was un- and the record of any rollcall vote (re- timely received and that copies of any flecting the vote of each Commissioner nonexempt portions of the transcript on the question). All documents consid- or minutes for the meeting in question ered in connection with any action will ordinarily be available in the of- shall be identified in such minutes. fice of the Secretary 10 working days (2) The Commission shall make after the meeting. promptly available to the public, in a (2)(i) Any person whose interests may place easily accessible to the public, be directly affected may request in the transcript, electronic recording, or writing that the Commission close to minutes (as required by paragraph (f)(1) public observation discussion of a mat- of this section) of the discussion of any ter which it has earlier decided to open item on the agenda, or of any item of the testimony of any witness received as provided for in paragraph (d)(2) of at the meeting, except for such item or this section. items of such discussion or testimony (ii) Such requests shall be captioned as the Commission determines by a ‘‘Request to Close lllll (date) majority vote of all its members (i) Commission meeting on item lllll contains information which may be (number or description),’’ shall state withheld under paragraph (c) of this the reason(s) therefor, the name and section, and (ii) is not required by the address of the person making the re- public interest to be made available. quest and, if desired, a telephone num- Copies of such transcript, or minutes, ber. or a transcription of such recording (iii) Ten copies of such requests disclosing the identity of each speaker, should be filed with the office of the shall be furnished to any person at the Secretary as soon as possible after the actual cost of duplication or tran- issuance of the notice of meeting to scription. The Commission shall main- which the request pertains. However, a tain a complete verbatim copy of the single copy of the request will be ac- transcript, a complete copy of the min- cepted. Requests to close meetings utes, or a complete electronic record- must be received by the office of the ing of each meeting, or portion of a Secretary no later than the time sched- meeting, closed to the public, for a pe- uled for the meeting to which such a riod of at least 2 years after such meet- request pertains. ing, or until 1 year after the conclusion (3) The Secretary shall retain one of any Commission proceeding with re- copy of timely requests and forward spect to which the meeting or portion one copy to each Commissioner, one was held, whichever occurs later. copy to the interested Office, and two (g) Requests to open or close Commis- copies to the Docket Section, one for sion meetings. (1)(i) Any person may reentry in the appropriate docket file, if quest in writing that the Commission any, and one to be posted on the Public open to public observation discussion Notice Board located in that section as

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an attachment to the Notice of Meet- § 3001.52 Filing of formal requests. ing to which it pertains. Whenever the Postal Service deter- (4) Pleadings replying to requests to mines to request that the Commission open or close shall not be accepted. submit a recommended decision on (5) Any Commissioner may require changes in rates or fees subject to this that the Commission vote upon the re- subpart, the Postal Service shall file quest to open or close. If the request is with the Commission a formal request supported by the votes of a majority of for a recommended decision. Such re- the agency membership, notice of quest shall be filed in accordance with change in meeting shall be issued and the requirements of §§ 3001.9 to 3001.11 the Secretary shall immediately notify and 3001.54. Within 5 days after the the requester and, before the close of Postal Service has filed a formal re- business the next working day, have quest for a recommended decision in posted such vote and other material re- accordance with this subsection, the quired by paragraphs (d) and (e) of this Secretary shall lodge a notice thereof section on the Commission’s Public No- with the Director of the Federal Reg- tice Board. ister for publication in the FEDERAL (6) If no Commissioner requests that REGISTER. a vote be taken on a request to open or [38 FR 4330, Feb. 13, 1973, as amended at 51 close a Commission meeting, the Sec- FR 8827, Mar. 14, 1986] retary shall by the close of the next working day after the meeting to § 3001.53 Filing of prepared direct evidence. which such request pertains certify that no vote was taken. The Secretary Simultaneously with the filing of the shall forward one copy of that certifi- formal request for a recommended de- cation to the requester and two copies cision under this subpart, the Postal of that certification to the Docket Sec- Service shall file all of the prepared direct evidence upon which it proposes to tion, one to be placed in the appro- rely in the proceeding on the record be- priate docket file, if any, and one to be fore the Commission to establish that posted on the Public Notice Board, the proposed changes or adjustments in where it will be displayed for one week. rates or fees are in the public interest [42 FR 13290, Mar. 10, 1977, as amended at 42 and are in accordance with the policies FR 25729, May 19, 1977; 58 FR 38976, July 21, and the applicable criteria of the Act. 1993; 62 FR 45530, Aug. 28, 1997; 65 FR 6544, Such prepared direct evidence shall be Feb. 10, 2000] in the form of prepared written testimony and documentary exhibits which Subpart B—Rules Applicable to shall be filed in accordance with Requests for Changes in Rates § 3001.31. or Fees § 3001.54 Contents of formal requests. § 3001.51 Applicability. (a) General requirements. (1) Each formal request filed under this subpart The rules in this subpart govern the shall include such information and procedure with regard to requests of data and such statements of reasons the Postal Service pursuant to section and bases as are necessary and appro- 3622 of the Act that the Commission priate fully to inform the Commission submit a recommended decision on and the parties of the nature, scope, changes in a rate or rates of postage or significance, and impact of the pro- in a fee or fees for postal service if the posed changes or adjustments in rates Postal Service determines that such or fees and to show that the changes or changes would be in the public interest adjustments in rates or fees are in the and in accordance with the policies of public interest and in accordance with the Act. The Rules of General Applica- the policies of the Act and the applicability in subpart A of this part are also ble criteria of the Act. To the extent applicable to proceedings on requests information is available or can be subject to this subpart. made available without undue burden, each formal request shall include the

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information specified in paragraphs (b) through 3001.28, respecting the provi- through (r) of this section. The request sion of information at a time following shall describe any changes that it pro- receipt of the formal request. poses in the attribution procedures ap- (4) The Commission may request in- plied by the Commission in the most formation in addition to that required recent general rate proceeding in which by paragraphs (b) through (r) of this its recommended rates or fees were section. adopted. If a request proposes to (b) Rates and standards information. (1) change the cost attribution principles Every formal request shall include applied by the Commission in the most schedules of the then effective rate or recent general rate proceeding in which rates of postage and fee or fees for all its recommended rates were adopted, postal services, and, arranged in legis- the Postal Service’s request shall in- lative format, schedules of the rate or clude an alternate cost presentation rates of postage and fee or fees for all satisfying paragraph (h) of this section postal services proposed by the Postal that shows what the effect on its re- Service, as they would appear in the quest would be if it did not propose Domestic Mail Classification Schedule. changes in attribution principles. If the The schedules shall show the full rate required information is set forth in the and where applicable the phased rate Postal Service’s prepared direct evi- under section 3626 of the Act and any dence, it shall be deemed to be part of proposed adjustment to such phased the formal request without restate- rates under section 3627 of the Act indi- ment. cated by circumstances known at the (2) If any information required by time of filing. paragraphs (b) through (r) of this sec- (2) The schedules required by para- tion is not available and cannot be graph (b)(1) of this section shall, for all made available without undue burden, classes and subclasses of mail and serv- the request shall provide where ref- ice, be in summary fashion and tariff- erence is made to this paragraph, in like form. (E.g., there shall be a speci- lieu of such information, a statement fication of those rules, regulations and explaining with particularity: practices which establish the condi- (i) The information which is not tions of mailability and the standards available or cannot be made available of service.) As a part thereof, the without undue burden; schedules shall specifically be ad- (ii) The reason or reasons that each dressed to such functions as mail pick- such item of information is not avail- up and delivery, processing and other able and cannot be made available similar functions. without undue burden; (3) Subject to paragraph (a)(2) of this (iii) The steps or actions which would section, the schedules required by para- be needed to make each such item of graph (b)(1) of this section shall also information available, together with contain a statement identifying the de- an estimate of the time and expense re- gree of economic substitutability be- quired therefor; tween the various classes and sub- (iv) Whether it is contemplated that classes, e.g., a description of cross-elas- each such item of information will be ticity of demand as between various supplied in the future and, if so, at classes of mail. what time; and (4) Subject to paragraph (a)(2) of this (v) Whether reliable estimates are section, the schedules required by para- available where such information can- graph (b)(1) of this section shall be ac- not be furnished and, if so, the specifics companied by an identification of all of such estimates. nonpostal services. (3) The provisions of paragraph (a)(2) (c) Mail characteristics. Subject to of this section for the Postal Service to paragraph (a)(2) of this section, every include in its formal request certain al- formal request shall include an identi- ternative information in lieu of that fication of the characteristics of the specified by paragraphs (b) through (r) mailer and recipient, and a description of this section are not in derogation of of the contents of items mailed within the Commission’s and the presiding of- the various classes and subclasses of ficer’s authority, pursuant to §§ 3001.23 mail and service.

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(d) Physical attributes of mail. Subject mates of accrued costs shall be cal- to paragraph (a)(2) of this section, culated on two bases: First, assuming every formal request shall include an the prefiling rates and fees and, second, identification of the physical at- assuming the suggested rates and fees. tributes of the items mailed by class Estimated accrued costs shall be ac- and subclass, including shape, weight, companied by an explanation of the and distance. methods and procedures used for cost (e) Special service arrangements. Sub- projections. The analyses of estimated ject to paragraph (a)(2) of this section, costs shall include, but need not be every formal request shall contain, to limited to: the extent the following information is (a) An explanation of the projection not expressly included under paragraph of total volumes; (b)(2) of this section, a summary state- (b) An explanation of the effect of the ment describing special service ar- projected volume levels on estimated rangements provided to, or requested total costs; or required of, mailers by the Postal (c) The specification of the cost sav- Service which bear upon the cost of ings which will be realized from gains service or the value of the mail service and improvements in total produc- to both the sender and the recipient, tivity, indicating such factors as oper- e.g., services relating to mailer prep- ational and technological advances and arations in excess of requirements innovations; and specified by the Postal Service Manual, (d) The identification of abnormal pick-up and delivery, expedited or de- costs which are expected to be incurred ferred processing, and other similar ac- in the forecasted test period. tivities performed. (3) Each cost presentation required (f) Total functionalized accrued costs. by paragraphs (f)(1) and (2) of this sec- (1) Subject to paragraph (a)(2) of this tion shall, subject to paragraph (a)(2) section, every formal request shall set of this section: forth the total actual accrued costs (i) Show operating costs in sufficient during the most recent fiscal year for detail as to the accounting and func- which they are reasonably available. In tional classifications and with such the event final total actual accrued reasonable explanation so that the ac- costs are not yet available for the fis- tual or estimated amount for each item cal year immediately preceding the fis- of expense may be readily understood; cal year in which the filing is made, a (ii) State and fully explain the preliminary or pro forma statement of amounts included for: such actual accrued costs shall be fur- (a) Depreciation on capital facilities nished. Any preliminary statement and equipment; shall use, as appropriate, quarterly or accounting period reports for the pre- (b) Debt service; ceding fiscal year. A final complete (c) Contingencies; and statement shall be substituted for any (d) Extraordinary or nonrecurring ex- preliminary statement when the penses; former becomes available. (iii) Assign and distribute costs to (2) Subject to paragraph (a)(2) of this each of the functions comprising the section, every formal request shall also mail process. Such presentations shall set forth (i) the estimated total ac- include: crued costs of the Postal Service for (a) An itemization of costs by the the fiscal year in which the filing is major accounts as reflected by the made and (ii) the estimated total ac- Service’s books of accounts for all cost crued costs of the Postal Service as segments, such as postmasters, super- specified in section 3621 of the Act visors, etc.; which form the basis for proposed (b) An itemization of costs by func- change in rates or fees. Estimated actions such as collection, acceptance, crued costs referred to in paragraph general overheads, etc.; (f)(2)(ii) of this section shall be for a (c) An assignment and distribution of fiscal year beginning not more than 24 the costs by account, exemplified in months subsequent to the filing date of paragraph (f)(3)(iii) (a) of this section, the formal request. These two esti- together with related mail volumes, to

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the functions exemplified in paragraph (3) The methodology used to derive (f)(3)(iii) (b) of this section; the costs requested in paragraphs (h)(2) (d) An assignment and distribution of (i) through (iv) of this section shall be the costs by account, together with reset forth in detail. lated mail volumes, to such subfunc- (4) The attributable and other costs tions within each category for which reasonably assignable as provided in information is available or can be de- paragraphs (h)(2) (i) through (iii) of veloped; and this section shall separately be attrib- (e) An explanation of the method by uted to mail classes, subclasses, special which the costs by accounts are as- services, and, to the extent practical, signed and distributed to functions. rate categories of mail service. The (g) Costs of prior fiscal years. Subject submission shall identify the method- to paragraph (a)(2) of this section, ology used to attribute or assign each every formal request shall present the type of such costs and, subject to para- total actual accrued costs for each fis- graph (a)(2) of this section, shall also cal year since the last filing pursuant include an analysis of the effect on to this section. Such submission should costs of: be in a form as nearly consistent as (i) Volume; possible with the filing under para- (ii) Peaking patterns; graph (f) of this section, together with (iii) Priority of handling; explanations of any departures from such form and the effect of such depar- (iv) Mailer preparations; tures. (v) Quality of service; (h) Separation, attribution, and assign- (vi) The physical nature of the item ment of certain costs. (1) Every for- mailed; mal request shall separate the Service’s (vii) Expected gains in total produc- actual and estimated total costs, for tivity, indicating such factors as oper- the fiscal years specified in paragraph ational and technological advances and (f) of this section, as between postal innovations; and services (including international mail) (viii) Any other factor affecting and nonpostal services. The presen- costs. tation shall show the methodology for (5) The cost forecasting or ‘‘roll-for- separating postal costs as between ward’’ model shall be provided. It shall postal services and nonpostal services, include the following items: and shall be in sufficient detail to (i) For each cost segment component, allow a determination that no non- a listing of all forecasting factors used postal costs have been assigned or allo- in the cost level, mail volume, non- cated to postal services. volume workload, additional workday, (2) Subject to paragraph (a)(2) of this productivity and other programs ef- section, the costs for postal services, as fects. set forth by functions pursuant to (ii) For each ‘‘ripple-affected’’ cost paragraph (f), shall be separated as be- segment component, a listing of those tween: segments and components that deter- (i) Those direct costs which can be mine its level of attribution or its dis- attributed to each class of mail or type tribution to mail class, subclass, rate of mail service; category and service. (ii) Those indirect costs which can be (iii) For each longer-run cost seg- attributed to each class of mail or type ment component: of mail service; (iii) Any other costs of the Service which can be reasonably assigned to ably assignable’’ and, second, that there are each class of mail or type of mail serv- some ‘‘remaining costs which cannot be at- ice; and tributed or reasonably assigned to classes of mail’’. See Docket R71–1, Vol. I, 1–9. If the (iv) Any costs which cannot be at- first interpretation is deemed to be correct, a tributed or reasonably assigned. no costs would be reported in the category denominated by § 3001.54(h)(2)(iv). The Com- a In his initial decision in Docket R71–1 the mission was cognizant in writing the rules of presiding officer noted two possible interpre- the presiding officer’s belief that it was not tations of 39 U.S.C. 3622(b)(3)—first, that all necessary to adopt either reading as exclu- costs are either ‘‘attributable’’ or ‘‘reason- sive.

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(a) A listing of all factors used in de- (4) For each distinct format type termining its overall level of attribu- used in the file, a brief description of tion, and each data item included in the format. (b) A listing of the specific cost seg- (b) A hard-copy description, in the ment components used in determining form of a mathematical equation, of its level of attribution, and its dis- each subroutine in the program. tribution to mail class, subclass, rate (c) A copy of the Base Year category and service. attibutable cost matrix on a 5-inch (iv) Workpapers showing the applica- floppy diskette in MS–DOS format. tion of the forecasting factors and pro- (6) Attributable cost final adjust- cedures to each cost segment compo- ments by mail class, subclass, rate cat- nent for each time period used in the egory and service, details of the devel- forecasting process. Such workpapers opment of those adjustments, and an shall include the quantification, and explanation of each adjustment shall distribution to mail class, subclass, be provided. rate category, and service, of each cost (7) ‘‘Other services’’ adjustments by segment component, separating the mail class, subclass, rate category and short-run from the longer-run portions. service, details of the development of Such workpapers shall conform to the those adjustments, and an explanation requirements of paragraph (o) of this of each adjustment shall be provided. section. Compliance with the citation (8) An overall summary cost table requirements of paragraph (o)(4) of this shall be provided. It shall show by mail section shall be achieved by providing class, subclass, rate category and serv- citations in ‘‘roll-forward’’ workpapers ice, short-run attributable costs, in the following cases: longer-run attributable costs, assign- (a) Workpapers showing the applica- able costs by category, and all adjust- tion of the forecasting factors and comments made to each of the foregoing. putational procedures (i.e., computer (9) For each cost segment, base-year subroutines described in paragraph amounts for each included account and (h)(5)(iv)(b) of this section) to rep- subaccount shall be provided. resentative short-run cost segment (10) The minimum level of components and to representative disaggregation required for presenting longer run cost segment components evidence on a cost segment or compo- for representative time periods used in nent is that employed by the Commis- the forecasting process. sion in its most recently completed section 3624 proceeding establishing a (b) Workpapers showing the applica- methodological precedent for that seg- tion of a computational procedure to a ment or component. This requirement cost segment component, if the appli- shall not apply: cation of a forecasting factor or com- (i) To presentations that propose to putational procedure to a particular define, attribute, assign, or distribute cost segment component deviates from to mail classes segment or component the application of that forecasting fac- costs by a method not employed or rector or computational procedure as pre- ommended by the Commission in such sented in the workpapers required by proceeding, and the Postal Service has paragraph (h)(5)(iv)(a) of this section. demonstrated that the proposed meth- (v) If the ‘‘roll forward’’ model is sub- odological departure makes the level of mitted in the form of a computer-gen- disaggregation most recently employed erated model, it shall include: or recommended by the Commission in- (a) An annotated glossary of input appropriate. data files, to include, for each time pe- (ii) Where the Postal Service has riod: demonstrated that changes in mail op- (1) The name of each input data file, erations make the level of (2) A general description of each file disaggregation most recently employed in relation to the ‘‘roll forward’’ proc- or recommended by the Commission in- ess, appropriate. (3) The format for each kind of data (11) Any nonattributed or unassigned record in the file, costs specified in paragraph (h)(2)(iv) of

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this section shall be clearly and sepa- (3) Subject to paragraph (a)(2) of this rately identified. An explanation shall section, the actual and estimated reve- be furnished as to why such costs can- nues referred to in paragraphs (j) (1) not be attributed or assigned. To the and (2) of this section shall be shown in extent possible, the presentation shall total and separately for each class and identify all such costs which benefit subclass of mail and postal service and more than one class of mail or type of for all other sources of revenue. Reve- service (but not all classes or types), nues derived from classes and sub- together with the mail classes or types classes of mail shall be disaggregated of services so benefited. to each unique rate element. (12) The Service shall furnish the (4) Each revenue presentation re- data relevant to its analysis of the ef- quired by paragraphs (j)(1), (j)(2), and fect on costs of the factors specified in (j)(3) of this section shall, subject to paragraphs (h)(4) (i) through (viii) of paragraph (a)(2) of this section, be doc- this section. umented in sufficient detail to allow (i) Criteria for rate schedule. There independent replication. Revenue esti- shall be included in every formal re- mates shall be supported by exhibits or quest a statement of the criteria em- workpapers that reference the source ployed in constructing the proposed of all data used, including volume lev- rate schedule. The submission shall in- els, billing determinants, and adjust- clude: ment factors. References may be to (1) The identification of the relation- published documents, library ref- ship between the revenues derived from erences, or companion testimony, and the rates and fees for a particular class shall include document identity, page, and subclass of mail or service and the and line, as appropriate. All assump- costs attributed or assigned to that tions used to estimate revenue for new class and subclass or service; or redesigned rate elements shall be (2) The identification of the proce- identified and explained. dures and methods used to apportion (5) Subject to paragraph (a)(2) of this (to postal services) that part of the section, there shall be furnished in total revenue requirement, if any, every formal request, for each class which is in excess of costs attributed or and subclass of mail and postal service, assigned.b the following: (i) An econometric demand study re- (3) Such other studies, information lating postal volumes to their eco- and data relevant to the criteria estab- nomic and noneconomic determinants lished by section 3622 of the Act with including postal rates, discounts and appropriate explanations as will assist fees, personal income, business condi- the Commission in determining wheth- tions, competitive and complementary er or not the proposed rates or fees are postal services, competitive and com- in accordance with such criteria. plementary nonpostal activities, popu- (j) Revenues and volumes. (1) Subject lation, trend, seasonal patterns and to paragraph (a)(2) of this section, other factors. every formal request shall set forth the (ii) The actual or estimated volume actual and estimated revenues of the of mail at the prefiled rates for each Postal Service from the then effective postal quarter beginning with the first postal rates and fees for the fiscal quarter of the most recent complete years selected for the presentation of fiscal year and ending one year beyond cost information submitted pursuant the last quarter of the future fiscal to paragraphs (f) and (g) of this section. year. (2) Subject to paragraph (a)(2) of this (iii) The estimated volume of mail section, every formal request shall set assuming the effectiveness of the sug- forth the estimated revenues based on gested rates for each postal quarter be- the suggested rates and fees for the fis- ginning with the quarter in which the cal years selected for the presentation rates are assumed to become effective of cost information submitted pursuant and ending one year beyond the last to paragraph (f)(2) of this section. quarter of the future fiscal year. (6) The estimated volumes and reve- b See footnote a, supra. nues referred to in paragraphs (j)(2),

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(j)(3), and (j)(5) of this section shall be date and the start of the future fiscal derived from the econometric demand year, study referred to in paragraph (j)(5)(i) (c) alternative forecasts of the eco- of this section. Supporting rationale nomic determinants of postal volumes shall be provided for any departure other than postal rates and fees, and from the assumptions and specifica- (d) alternative values of any param- tions in the demand study made in es- eters with assigned values that are timating volumes of any class, sub- based upon unverifiable judgments. class, or rate category of mail. Sup- (v) The computer implementation de- porting rationale shall be provided for scribed in paragraph (j)(6)(iii) of this using billing determinants to estimate section shall comply with revenues for any class, subclass, or rate § 3001.31(k)(3). category of mail that differ from the billing determinants implicit in the es- (7) Subject to paragraph (a)(2) of this timate of volumes for that class, subsection, there shall be made available class, or rate category. at the offices of the Commission with (i) Subject to paragraph (a)(2) of this every formal request, in a form that section, there shall be furnished in can be read directly by a standard dig- every formal request a detailed expla- ital computer, the following: nation of the methodology employed to (i) All of the input files and programs forecast volumes for each class and needed to replicate the econometric de- subclass of mail and postal service. mand study referred to in paragraph Representative derivations of these (j)(5)(i) of this section; forecasts from the econometric demand (ii) Any input files and programs em- study shall be presented in detail for ployed to derive a price index for any two major mail classes, showing each class or subclass of mail or postal serv- intermediate value or factor employed. ice from postal rates, discounts and For remaining classes and subclasses of fees; mail, such derivations may be summa- (iii) Any input files and programs rized, except where their derivations used to prepare data for use in the depart from the representative meth- econometric demand study referred to ods presented. in paragraph (j)(5)(i) of this section. (ii) Subject to paragraph (a)(2) of this (k) Financial statements and related in- section, there shall be furnished in formation. (1) Subject to paragraph every formal request a detailed expla- (k)(3) of this section, every formal re- nation of the methodology employed to quest shall include, for the 2 fiscal forecast changes in revenues for each years immediately preceding the fiscal class and subclass of mail and postal year in which the date of formal filing service resulting from changes in rates occurs, the Balance Sheet, the State- and fees. ment of Income and Expense, basic sta- (iii) Subject to paragraph (a)(2) of tistical information and the Statement this section, there shall be furnished in of Income and Expense by budget cat- every formal request a computer im- egories of the Postal Service. This in- plementation of the methodology em- formation shall include data with re- ployed to forecast volumes and reve- spect to: nues for each class and subclass of mail and postal service. (i) Balance Sheet and a supporting (iv) The computer implementation schedule for each item appearing there- described in paragraph (j)(6)(iii) of this on; section shall be able to compute fore- (ii) Statement of Income and Expense casts of volumes and revenues compat- and a supporting schedule for each ible with those referred to in para- item appearing thereon; graphs (j)(2), (j)(3), and (j)(5) of this sec- (iii) As appropriate, statistical data tion for: with respect to revenue, pieces (by (a) Any set of rates and fees within a physical attributes, showing separately reasonable range of the prefiled and amounts of mail identified as stamped, suggested rates, metered, and imprinted, or other), (b) any date of implementation with- weight, distance, postal employees in the range spanned by the assumed (number, total payroll, productivity,

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etc.), postal space, post offices (num- have been set. This information may be ber, classes, etc.), and any other perti- provided by reference to published doc- nent factors which have been utilized uments or otherwise. in the development of the suggested (o) Workpapers. (1) Whenever the rate schedule; Service files a formal request it shall (iv) Statement of Income and Ex- accompany the request with seven sets pense by cost segment. of workpapers, five for use by the Com- (2) A reconciliation of the budgetary mission staff and two which shall be information with actual accrued costs available for use by the public at the shall be provided for the most recent Commission’s offices. fiscal year. (2) Workpapers shall contain: (3) If the fiscal information for the (i) Detailed information underlying immediately preceding fiscal year is the data and submissions for para- not fully available on the date of filing, graphs (b) through (n) of this section in a preliminary or pro forma submittal such fashion and content so as to per- shall be made and upon final comple- mit independent analysis of each cost tion an updated report shall be filed in component and an independent attribu- substitution therefor. tion or assignment of costs to classes (l)(1) Billing determinants. A state- and subclasses and the assignment of ment, which can be in workpaper form, nonattributed or unassigned costs to indicating for each class and subclass classes and subclasses; of mail and postal service the relevant (ii) A description of the methods used billing determinants (e.g., the volume of mail related to each rate element in in collecting, summarizing and expand- determining revenues) separately for ing the data used in the various sub- the current rates and the proposed missions; rates. Proposed changes in rate design (iii) Summaries of sample data, allo- and the related adjustments of billing cation factors and other data used for determinants should be explained in the various submissions; detail. (iv) The expansion ratios used (where (2) For third-class bulk mail, subject applicable); and to paragraph (a)(2) of this section, (v) The results of any special studies every formal request shall set forth used to modify, expand, project, or separately for regular and preferred, by audit routinely collected data. presort level, the base year volume by (3) Workpapers shall be neat and leg- ounce increment for each shape (letter- ible and shall indicate how they relate size, flat, irregular parcels, parcels). to the data and submissions supplied in (m) Continuing and phasing appropria- response to paragraphs (b) through (n) tions. A statement, which can be in of this section. workpaper form, presenting detailed (4) Workpapers shall include cita- calculations of continuing appropriations sufficient to enable a reviewer to tions according to 39 U.S.C. 2401(c) and trace any number used but not derived phasing appropriations under 39 U.S.C. in the associated testimony back to 3626 and any proposed adjustment to published documents or, if not obtained such phased rates under 39 U.S.C. 3627 from published documents, to primary indicated by circumstances known at data sources. Citations shall be suffi- the time of the filing. Calculation of ciently detailed to enable a reviewer to all the phased rates for the entire ap- identify and locate the specific data plicable phasing period should be ex- used, e.g., by reference to document, plained in detail. page, line, column, etc. With the excep- (n) Performance goals. (1) Every for- tion of workpapers that follow a stand- mal request shall identify any perform- ardized and repetitive format, the re- ance goals which have been established quired citations themselves, or a cross- for the classes and subclasses of mail. reference to a specific page, line, and (2) Subject to paragraph (a)(2) of this column of a table of citations, shall ap- section, the request shall identify the pear on each page of each workpaper. achieved levels of service for those Workpapers that follow a standardized classes and subclasses of mail and mail and repetitive format shall include the services for which performance goals citations described in this paragraph

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for a sufficient number of representa- § 3001.55 Service by the Postal Service. tive examples to enable a reviewer to Immediately after the issuance of an trace numbers directly or by analogy. order or orders by the Commission des- (p) Certification by officials. (1) Every ignating an officer of the Commission formal request shall include one or to represent the interests of the gen- more certifications stating that the eral public in a proceeding before the cost statements and supporting data Commission under this subpart, the submitted as a part of the formal re- Postal Service shall serve copies of its quest, as well as the accompanying formal request for a recommended de- workpapers, which purport to reflect cision and its prepared direct evidence the books of the Postal Service, accurately set forth the results shown by upon such officer and the intervenors such books. as provided in § 3001.12. Service shall also be made on persons who are lim- (2) The certificates required by para- ited participators. graph (p)(1) of this section shall be signed by one or more representatives [38 FR 3511, Feb. 7, 1973; 51 FR 8827, Mar. 14, of the Postal Service authorized to 1986, as amended at 58 FR 38977, July 21, 1993] make such certification. The signature of the official signing the document § 3001.56 Failure to comply. constitutes a representation that the If the Postal Service fails to provide official has read the document and any information specified by this sub- that, to the best of his/her knowledge, part, or otherwise required by the pre- information and belief, every state- siding officer or the Commission, the ment contained in the instrument is Commission, upon its own motion, or proper. upon motion of any participant to the (q) Opinion of independent public ac- proceeding, may stay the proceeding countant. Every formal request shall until satisfactory compliance is include an opinion from an independent achieved. The Commission will stay public accountant to the extent and as proceedings only if it finds that failure required by 39 U.S.C. 2008(e). to supply adequate information inter- (r) Special waiver provision for minor feres with the Commission’s ability rate cases. The Commission may, upon promptly to consider the request and the filing of a proper motion by the to conduct its proceedings with expedi- Postal Service, together with a show- tion in accordance with the Act. ing of good cause therefor, waive certain of the filing requirements of para- [38 FR 7535, Mar. 22, 1973; 51 FR 8827, Mar. 14, graphs (b) through (q) of this section if 1986] in the Commission’s judgment it has § 3001.57 Market response rate re- been demonstrated that the proposed quests for express mail service— change in a rate or rates of postage and purpose and duration of rules. a fee or fees for postal service does not significantly change the then effective (a) This section and §§ 3001.58 through rates and fees or alter the cost-revenue 3001.60 only apply in cases in which the relationships of the various classes and Postal Service requests an expedited types of postal services. recommended decision pursuant to sec- (s) Rejection of requests. The Commis- tion 3622 of the Postal Reorganization sion may reject any request under this Act on changes in rates and fees for Ex- subpart that patently fails to substan- press Mail service, where the proposed tially comply with any requirements of changes are intended to respond to a this subpart. change in the market for expedited delivery services for the purpose of mini- [38 FR 7532, Mar. 22, 1973, as amended at 42 mizing the loss of Express Mail con- FR 8143, Feb. 9, 1977; 42 FR 18076, Apr. 5, 1977; tribution to institutional costs rec- 44 FR 26075, May 4, 1979; 45 FR 65575 and ommended in the most recent omnibus 65580, Oct. 3, 1980; 48 FR 3733, Jan. 27, 1983; 48 rate case. These rules set forth the re- FR 50717, Nov. 3, 1983; 50 FR 43392, Oct. 25, 1985; 51 FR 8827, Mar. 14, 1986; 51 FR 14993, quirements for filing data in support of Apr. 22, 1986; 54 FR 35495, Aug. 28, 1989; 58 FR such rate proposals and for providing 38976, 38977, July 21, 1993; 59 FR 8542, Feb. 23, notice of such requests, and establish 1994; 62 FR 30250, June 3, 1997] an expedited procedural schedule for

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evaluating Market Response Rate Re- ment the changes proposed by the quests. These rules may not be used Postal Service, and, arranged in a leg- when the Postal Service is requesting islative format, the text of the replace- changes in Express Mail rates as part ment Domestic Mail Classification of an omnibus rate case. Schedule sections the Postal Service (b) This section and §§ 3001.58 through proposes. 3001.60 are effective November 28, 2001 (e) In addition to the required test through November 28, 2006. period cost estimates, every formal re- [66 FR 54438, Oct. 29, 2001] quest made under the provisions of §§ 3001.57 through 3001.60 shall be ac- § 3001.58 Market response rate companied by a statement of the at- requests—data filing requirements. tributable costs by segment and com- (a) Each formal request made under ponent for Express Mail service deter- the provisions of §§ 3001.57 through mined in accordance with the attrib- 3001.60 shall be accompanied by such utable cost methodology adopted by information and data as are necessary the Commission in the most recent om- to inform the Commission and the par- nibus rate case, for the base year used ties of the nature and expected impact in that case, and for each fiscal year of the change in rates proposed. Except thereafter for which cost data is avail- for good cause shown, the information able. If the Postal Service believes that specified in paragraphs (c) through (i) an adjustment to that methodology is shall also be provided with each re- warranted it may also provide costs quest. using alternative methodologies as (b) Except as otherwise expressly pro- long as a full rationale for the proposed vided in this section, the information changes is provided. required by § 3001.54 (b) through (r) (f) Each formal request made under must be filed only for those subclasses the provisions of §§ 3001.57 through and services for which the Postal Serv- 3001.60 shall include a description of all ice requests a change in rates or fees. operational changes, occurring since Test period volume, cost, and revenue the most recent omnibus rate case, estimates presented in satisfaction of having an important impact on the at- rule 58 shall be for four postal quarters tributable cost of Express Mail. Postal beginning after the filing date of the Service shall include an analysis and request. The cost roll-forward may be estimate of the cost impact of each developed by extending the cost fore- such operational change. casting model used in the last omnibus rate case (utilizing available actual (g) Every formal request made under data). Volume and revenue estimates the provisions of §§ 3001.57 through required by these rules shall utilize, to 3001.60 shall be accompanied by a state- the extend practicable, the factors ment of the actual Express Mail reve- identified in rule 54(j)(6), and must be nues of the Postal Service from the fully explained, with all available sup- then effective Express Mail rates and porting documentation supplied, but fees for the most recent four quarters they need not be econometrically de- for which information is available. rived. (h) Each formal request made under (c) Every formal request made under the provisions of §§ 3001.57 through the provisions of §§ 3001.57 through 3001.60 shall be accompanied by a com- 3001.60 shall contain an explanation of plete description of the change in the why the change proposed by the Postal market for expedited delivery services Service is a reasonable response to the to which the Postal Service proposal is change in the market for expedited de- in response, a statement of when that livery services to which it is intended change took place, the Postal Service’s to respond. analysis of the anticipated impact of (d) Every formal request made under that change on the market, and a de- the provisions of §§ 3001.57 through scription of characteristics and needs 3001.60 shall be accompanied by the of customers and market segments af- then effective Domestic Mail Classi- fected by this change which the pro- fication Schedule sections which would posed Express Mail rates are designed have to be altered in order to imple- to satisfy.

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(i) Each formal request made under cordance with § 300l.59(c) has been the provisions of §§ 3001.57 through made. 3001.60 shall include estimates, on a [66 FR 54438, Oct. 29, 2001] quarterly basis, of test period volumes, revenues, and attributable costs deter- § 3001.59 Market Response Rate Re- mined in accordance with the attrib- quests–expedition of public notice utable cost methodology adopted by and procedural schedule. the Commission in the most recent om- (a) The purpose of this section is to nibus rate case for each Express Mail provide a schedule for expediting pro- service for which rate changes are proceedings when a trial-type hearing is posed assuming: required in a proceeding in which the (1) rates remain at their existing lev- Postal Service proposes to adjust rates els, and for Express Mail service in order to re- (2) rates are changed after 90 days to spond to a change in the market for ex- the levels suggested in the request. pedited delivery services. (j)(1) Each formal request made (b) The Postal Service shall not pro- under the provisions of §§ 3001.57 pose for consideration under the provi- through 3001.60 shall be accompanied sions of §§ 3001.57 through 3001.60 rates by the following information, for each lower than: quarter following the base year in the (1) The average per piece attributable most recent omnibus rate case: cost for Express Mail service deter- (i) Estimated volume by rate cell, for mined in the most recent omnibus rate each Express Mail service; case, or (ii) Total postage pounds of Express (2) The average per piece attributable Mail rated at: cost for Express Mail service as deter- (A) up to 1⁄2 pound, mined by the Postal Service in accord- (B) 1⁄2 pound up to 2 pounds, ance with section 3001.58(e) for the (C) 2 pounds up to 5 pounds; and most recent fiscal year for which infor- (iii) Total pounds of Express Mail and mation is available, whichever is high- of each other subclass of mail carried er. Neither shall the Postal Service on hub contracts. propose a rate for any rate cell which (2) In each instance when rates is lower than the estimated test period change based on a proceeding under the attributable cost of providing that rate provisions of §§ 3001.57 through 3001.60 cell with service. the Postal Service shall provide, one (c)(1) Persons who are interested in year after the conclusion of the test pe- participating in Express Mail Market riod, the data described in section Response Rate Request cases may in- 3001.58(j)(1)(i–iii), for each of the four tervene pursuant to § 3001.20 within 28 quarters of the test period. days of the filing of a formal request (k) Each formal request made under made under the provisions of §§ 3001.57 the provisions of §§ 3001.57 through through 3001.60. Parties may withdraw 3001.60 shall include analyses to dem- from a case by filing a notice with the onstrate: Commission. (1) that the proposed rates are con- (2) When the Postal Service files a re- sistent with the factors listed in 39 quest under the provisions of §§ 3001.57 U.S.C. 3622(b), through 3001.60 it shall comply with the (2) that the proposed rate changes are standard Filing Online procedures of in the public interest and in accord- §§ 3001.9 through 3001.12. ance with the policies and applicable (3) When the Postal Service files a re- criteria of the Act, and quest under the provisions of §§ 3001.57 (3) that the proposed rates will pre- through 3001.60, it shall on that same serve, or minimize erosion of, the Ex- day file a notice that briefly describes press Mail contribution to institu- its proposal. Such notice shall indicate tional costs recommended in the most on its first page that it is a notice of an recent omnibus rate case. Express Mail Market Response Rate (l) Each formal request made under Request to be considered under the provisions of §§ 3001.57 through §§ 3001.57 through 3001.60, and identify § 3001.60 shall be accompanied by a cer- the last day for filing a notice of inter- tificate that service of the filing in ac- vention with the Commission.

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(d) In the absence of a compelling ticipants as soon as an Express Mail showing of good cause, the Postal Serv- Market Response Rate Request is filed. ice and parties shall calculate Express Answers to such discovery requests Mail costs in accordance with the will be due within 10 days. Objections methodologies used by the Commission to such discovery requests must be in the most recent omnibus rate case. filed within 10 days in the form of a In the analysis of customers’ reactions Motion to Excuse from Answering. Re- to the change in the market for expe- sponses to Motions to Excuse from An- dited delivery services which prompts swering must be filed within 7 days, the request, the Postal Service and and should such a motion be denied, parties may estimate the demand for the answers to the discovery in ques- segments of the expedited delivery tion are due within 7 days of the denial market and for types of customers thereof. It is the Commission’s inten- which were not separately considered tion that parties resolve discovery dis- when estimating volumes in the most putes informally between themselves recent omnibus rate case. whenever possible. The Commission, (e)(1) In the event that a party wishes therefore, encourages the party receiv- to dispute as an issue of fact whether ing discovery requests considered to be the Postal Service properly has cal- unclear or objectionable to contact culated Express Mail costs or volumes counsel for the party filing the dis- (either before or after its proposed covery requests whenever further exchanges), or wishes to dispute whether planation is needed, or a potential dis- the change in the market for expedited covery dispute might be resolved by delivery services cited by the Postal means of such communication. Service has actually occurred, or wish- (5) If, either on its own motion, or es to dispute whether the rates pro- after having received a request for a posed by the Postal Service are a rea- hearing, the Commission concludes sonable response to the change in the that there exist one or more genuine market for expedited delivery services issues of material fact and that a hear- or are consistent with the policies of ing is needed, the Commission shall ex- the Postal Reorganization Act, that pedite the conduct of such record evi- party shall file with the Commission a dentiary hearings to meet both the request for a hearing within 28 days of need to respond promptly to changed the date that the Postal Service files circumstances in the market and the its request. The request for hearing standards of 5 U.S.C. 556 and 557. The shall state with specificity the fact or procedural schedule, subject to change facts set forth in the Postal Service’s as described in paragraph (e)(6) of this filing that the party disputes, and section, is as follows: Hearings on the when possible, what the party believes Postal Service case will begin 35 days to be the true fact or facts and the evi- after the filing of an Express Mail Mar- dence it intends to provide in support ket Response rate request; parties may of its position. file evidence either in support of or in (2) The Commission will not hold opposition to the Postal Service pro- hearings on a request made pursuant to posal 49 days after the filing; hearings §§ 3001.57 through 3001.60 unless it deter- on the parties’ evidence will begin 56 mines that there is a genuine issue of days after the filing; briefs will be due material fact to be resolved, and that a 70 days after the filing; and reply briefs hearing is needed to resolve this issue. will be due 77 days after the filing. (3) Whether or not a hearing is held, (6) The presiding officer may adjust the Commission may request briefs any of the schedule dates prescribed in and/or argument on an expedited sched- (e)(5) of this section in the interests of ule, but in any circumstance it will fairness, or to assist in the develop- issue its recommended decision as ment of an adequate evidentiary promptly as is consistent with its stat- record. Requests for the opportunity to utory responsibilities. present evidence to rebut a submission (4) In order to assist in the rapid de- by a participant other than the Postal velopment of an adequate evidentiary Service should be filed within three record, all participants may file appro- working days of the receipt of that ma- priate discovery requests on other par- terial into the evidentiary record, and

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should include a description of the evi- a formal request for a recommended dence to be offered and the amount of decision in accordance with this sub- time needed to prepare and present it. section, the Secretary shall lodge a no- Requests for additional time will be re- tice thereof with the Director of the viewed with consideration as to wheth- Federal Register for publication in the er the requesting participant has exer- FEDERAL REGISTER. cised due diligence, and whether the requesting participant has been unrea- [38 FR 4330, Feb. 13, 1973, as amended at 51 FR 8827, Mar. 14, 1986] sonably delayed from fully understanding the proposal. § 3001.63 Filing of prepared direct evi- [66 FR 54438, Oct. 29, 2001, as amended at 68 dence. FR 12589, Mar. 17, 2003] Simultaneously with the filing of the formal request for a recommended de- § 3001.60 Express mail market cision under this subpart, the Postal response—rule for decision. Service shall file all of the prepared di- The Commission will issue a rec- rect evidence upon which it proposes to ommended decision in accordance with rely in the proceeding on the record be- the policies of 39 U.S.C., and which it fore the Commission to establish that determines would be a reasonable re- the mail classification schedule or sponse to the change in the market for changes therein proposed by the Postal expedited delivery services. The pur- Service are in accordance with the pose of §§ 3001.57 through 3001.60 is to policies and the applicable criteria of allow for consideration of Express Mail the Act. Such prepared direct evidence Market Response rate requests within shall be in the form of prepared written 90 days, consistent with the procedural testimony and documentary exhibits due process rights of interested per- which shall be filed in accordance with sons. § 3001.31. [66 FR 54438, Oct. 29, 2001] [36 FR 396, Jan. 12, 1971, as amended at 58 FR 38977, July 21, 1993] Subpart C—Rules Applicable to Requests for Establishing or § 3001.64 Contents of formal requests. Changing the Mail Classifica- (a) General requirements. (1) Each for- tion Schedule mal request filed under this subpart shall include such information and § 3001.61 Applicability. data and such statements of reasons The rules in this subpart govern the and bases as are necessary and appro- procedure with regard to requests of priate fully to inform the Commission the Postal Service pursuant to section and the parties of the nature, scope, 3623 of the Act that the Commission significance, and impact of the pro- submit a recommended decision on es- posed new mail classification schedule tablishing or changing the mail classi- or the proposed changes therein and to fication schedule. The Rules of General show that the mail classification Applicability in subpart A of this part schedule as proposed to be established are also applicable to proceedings on or changed is in accordance with the requests subject to this subpart. policies and the applicable criteria of the Act. To the extent the information § 3001.62 Filing of formal requests. is available or can be made available Whenever the Postal Service deter- without undue burden, each formal re- mines to request that the Commission quest shall include the information submit a recommended decision on es- specified in paragraphs (b) through (h) tablishing or changing the mail classi- of this section. If the required informa- fication schedule, the Postal Service tion is set forth in the Postal Service’s shall file with the Commission a for- prepared direct evidence, it shall be mal request for a recommended deci- deemed to be part of the formal request sion. Such request shall be filed in ac- without restatement. cordance with the requirements of (2) If any information required by §§ 3001.9 to 3001.11 and § 3001.64. Within 5 paragraphs (b) through (h) of this sec- days after the Postal Service has filed tion is not available and cannot be

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made available without undue burden, dressed to such functions as mail pick- the request shall provide where ref- up and delivery, processing, and other erence is made to this paragraph, in similar functions. lieu of such information, a statement (3) The schedules required by para- explaining with particularity: graph (b)(1) of this section shall also (i) The information which is not contain a statement identifying the de- available or cannot be made available gree of economic substitutability be- without undue burden; tween the various classes and sub- (ii) The reason or reasons that each classes, e.g., a description of cross-elas- such item of information is not avail- ticity of demand as between various able and cannot be made available classes of mail. without undue burden; (4) The schedules required by para- (iii) The steps or actions which would graph (b)(1) of this section shall be ac- be needed to make each such item of companied by an identification of all information available, together with nonpostal services. an estimate of the time and expense re- (c) Mail characteristics. Every formal quired therefor; request shall include such studies, in- (iv) Whether it is contemplated that formation and data on the characteris- each such item of information will be tics of the users of the Postal Service, supplied in the future and, if so, at the nature of the items mailed and the what time; and nature of the methods of mailing, (v) Whether reliable estimates are which will assist the Commission in de- available where such information can- termining whether or not the proposed not be furnished and, if so, the specifics mail classification schedule or the proof such estimates. posed changes therein are in accord- (3) The provisions of paragraph (a)(2) ance with the policies and the applica- of this section for the Postal Service to ble criteria of the Act. Included, sub- include in its formal request certain al- ject to paragraph (a)(2) of this section, ternative information in lieu of that shall be: specified by paragraphs (b) through (h) (1) An identification of the character- of this section are not in derogation of istics of the mailer and recipient, and a the Commission’s and the presiding of- description of the contents of items ficer’s authority, pursuant to §§ 3001.23 mailed within the various classes and through 3001.28, respecting the provi- subclasses of mail and service; sion of information at a time following (2) An identification of the physical receipt of the formal request. attributes of the items mailed by class (4) The Commission may request in- and subclass, including shape, weight, formation in addition to that required and distance; by paragraphs (b) through (h) of this (3) To the extent the following infor- section. mation is not expressly included under (b) Classification and standards infor- paragraph (b)(2) of this section, a sum- mation. (1) Every formal request shall mary statement describing special include copies of the then effective Do- service arrangements provided to, or mestic Mail Classification Schedule requested or required of, mailers by the and the proposed changes therein, in- Postal Service which bear upon the cluding, in legislative format, all pro- cost of service or the value of the mail posed changes in the schedules of rate service to both the sender and the re- or rates of postage and fee or fees for cipient, e.g., services relating to mailer postal services that appear therein. preparations in excess of requirements (2) The schedules required by para- specified by the Postal Service Manual, graph (b)(1) of this section shall, for all pick-up and delivery, expedited or de- classes and subclasses of mail and serv- ferred processing, and other similar ac- ice, be in summary fashion and tariff- tivities performed. like form. (E.g., there shall be a speci- (d) Effects of proposed changes. (1) fication of those rules, regulations, and Subject to paragraph (a)(2) of this sec- practices which establish the condition, every formal request shall include tions of mailability and the standards a statement showing the effects of the of service.) As a part thereof, the proposed changes in the then effective schedules shall specifically be ad- classification schedule upon:

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(i) The costs attributed and assigned (4) Workpapers shall include cita- to each class and subclass of mail or tions sufficient to enable a reviewer to service as developed pursuant to trace any number used but not derived § 3001.54(h); in the associated testimony back to (ii) The total accrued costs of the published documents or, if not obtained Postal Service developed pursuant to from published documents, to primary § 3001.54(f); and data sources. Citations shall be suffi- (iii) The total revenues of the Postal ciently detailed to enable a reviewer to Service and the revenues of each class identify and locate the specific data and subclass of mail or service devel- used, e.g., by reference to document, oped pursuant to § 3001.54(j). page, line, column, etc. With the excep- (e) Interclass changes. Subject to para- tion of workpapers that follow a stand- graph (a)(2) of this section, whenever it ardized and repetitive format, the re- is proposed that a portion of one exist- quired citations themselves, or a cross- ing class or subclass of mail or service reference to a specific page, line, and be reassigned to another existing class column of a table of citations, shall ap- or subclass of mail or service, every pear on each page of each workpaper. formal request shall include a compari- Workpapers that follow a standardized son of the before and after costs and and repetitive format shall include the revenues associated with handling the citations described in this paragraph relevant classes or subclasses of mail for a sufficient number of representa- or service, and the before and after tive examples to enable a reviewer to costs and revenues of the portion which trace numbers directly or by analogy. is to be reassigned. (h) Matters affecting rates and fees. (1) (f) Statement of reasons. Every formal This paragraph applies to any proposed request shall include a complete state- change in the then effective classifica- ment of the reasons and bases for the tion schedule which would result: Postal Service’s proposed mail classi- (i) In a change in the rates or fees for fication schedule or proposed changes any existing class or subclass of mail therein. and service, or (ii) In the establishment of a new (g) Workpapers. (1) Whenever the class or subclass of mail or service for Service files a formal request it shall which rates or fees are to be estab- accompany the request with seven sets lished, or of workpapers, five for use by the Com- (iii) In a change in the relationship of mission staff and two which shall be the costs attributed or assigned to any available for use by the public at the class or subclass of mail or service to Commission’s offices. the revenues of that class or subclass (2) Workpapers shall contain: of mail or service, or (i) Detailed information underlying (iv) In a change in the relationship of the data and submissions for para- the total costs of the Postal Service to graphs (b) through (f) of this section; the total revenues. (ii) A description of the methods used (2) In the case of any proposed change in collecting, summarizing and expand- in the then effective classification ing the data used in the various sub- schedule covered by paragraph (h)(1) of missions; this section, every formal request shall (iii) Summaries of sample data, allo- include, subject to paragraph (a)(2) of cation factors and other data used for this section: the various submissions; (i) The information required by para- (iv) The expansion ratios used (where graphs (b) through (h), (j) through (l), applicable); and and (o) through (p) of § 3001.54, together (v) The results of any special studies with the statement and opinion re- used to modify, expand, project, or quired by paragraphs (q) and (r) of audit routinely collected data. § 3001.54; and (3) Workpapers shall be neat and leg- (ii) A statement explaining to what ible and shall indicate how they relate extent the Postal Service has consid- to the data and submissions supplied in ered the criteria of section 3622 of the response to paragraphs (b) through (f) Act as justifying the rate consequences of this section. of the proposed classifications. The

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submission shall also include the iden- proceeding, may stay the proceeding tification of the relationship between until satisfactory compliance is the rates and fees for a particular class achieved. The Commission will stay and subclass or service, the identifica- proceedings only if it finds that failure tion of the procedures and methods to supply adequate information inter- used to relate the residual costs which feres with the Commission’s ability have not been attributed to any class promptly to consider the request and and subclass of mail or service or to conduct its proceedings with expedi- groups thereof, and such other studies, tion in accordance with the Act. information, and data relevant to the [38 FR 7536, Mar. 22, 1973, as amended at 51 criteria established by section 3622 of FR 8827, Mar. 14, 1986] the Act with appropriate explanations. (3) The Commission may, upon the § 3001.67 Requests involving experi- filing of a proper motion by the Postal mental changes. Service, together with a showing of (a) This section and §§ 3001.67a good cause therefor, waive certain of through 3001.67d apply in cases where the above requirements if in the Com- the Postal Service requests a rec- mission’s judgment it has been dem- ommended decision pursuant to section onstrated that the proposed change in 3623 of the Postal Reorganization Act the classification schedule does not and denominates the new service or significantly change the rates and fees change in an existing service as experi- or the cost-revenue relationships re- mental in character. These sections do ferred to in paragraphs (h)(1)(i) through not apply to the situation in which a (iv) of this section. request not denominated as experi- (i) Rejection of requests. The Commis- mental by the Postal Service, either at sion may reject any request under this the time of its filing or subsequently, subpart that patently fails to substan- is found to be justified by the Commis- tially comply with the requirements of sion only on an experimental basis, fol- this subpart. lowing analysis of the record made in [38 FR 7535, Mar. 22, 1973, as amended at 42 the proceedings on such a request. FR 18076, Apr. 5, 1977; 44 FR 26075, May 4, (b) This section and §§ 3001.67a 1979; 45 FR 65575, Oct. 3, 1980; 50 FR 43393, through 3001.67d are not intended to Oct. 25, 1985; 51 FR 8827, Mar. 14, 1986; 58 FR substitute for the rules generally gov- 38977, July 21, 1993] erning requests for changes in the Do- § 3001.65 Service by the Postal Service. mestic Mail Classification Schedule in cases where the treatment of the pro- Immediately after the issuance of an posed changes as experimental is not order or orders by the Commission des- justified by the character of those ignating an officer of the Commission changes. The Commission reserves the to represent the interests of the gen- right, in appropriate cases, to require eral public in a proceeding before the that the normal procedures prescribed Commission under this subpart, the for nonexperimental cases under sec- Postal Service shall serve copies of its tion 3623 be used. In determining formal request for a recommended de- whether the procedures for experi- cision and its prepared direct evidence mental cases may be used in a par- upon such officer and the intervenors ticular case, the Commission will con- as provided in § 3001.12. Service shall sider: also be made on persons who are lim- (1) The novelty of the proposed ited participators. change; [38 FR 3511, Feb. 7, 1973, as amended at 51 FR (2) The magnitude of the proposed 8827, Mar. 14, 1986; 58 FR 38977, July 21, 1993] change, including its effect on postal costs, postal revenues, mailing costs § 3001.66 Failure to comply. and practices of users of the mails, and If the Postal Service fails to provide persons or firms offering services com- any information specified by this sub- petitive with or alternative to the serv- part, or otherwise required by the pre- ice offerings of the Postal Service; siding officer or the Commission, the (3) The ease or difficulty of gener- Commission, upon its own motion, or ating or gathering data with respect to upon motion of any participant to the the proposed change; and

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(4) The desired duration of the experi- within 10 days of the filing of initial ment as indicated by the Postal Serv- statements. ice in its request and, specifically, in (c) Following the exchange of state- its proposed Domestic Mail Classifica- ments of issues called for by paragraph tion Schedule language. (b) of this section, the Commission will (c) In the case of a proposal denomi- determine which issues constitute gen- nated as an experiment by the Postal uine issues of material fact and con- Service, the Commission will entertain comitantly order the limitation of representations by parties to the case trial-type hearing procedures to those that the proposal should not be consid- issues. The order issued for this pur- ered as an experiment and should fol- pose will also set forth to the greatest low the normal mail classification extent feasible the procedures to be fol- change procedures. The Commission lowed in disposing of issues not found does not contemplate entertaining rep- to be genuine issues of material fact. resentations by parties to a case filed According to the nature of the indi- under the normal procedures that the vidual issue, these procedures may include. matter should be treated as an experi- (1) Filing of written comments and ment under this section and §§ 3001.67a reply comments; through 3001.67d. (2) Conference procedures, followed [45 FR 83226, Dec. 18, 1980] or accompanied by the filing of written comments and reply comments; and § 3001.67a Requests involving experi- (3) Briefing and argument. mental changes—procedures for In determining the procedures to be limitation of issues. followed with respect to issues not re- (a) The purpose of this section is to quiring a trial-type hearing, the Com- provide a mechanism for the limiting mission will seek to accommodate the of issues on which a trial-type hearing needs of expedition and procedural fair- is required. It recognizes that in a pro- ness in accordance with section 3624(b) ceeding properly designated as experi- of the Act. mental under § 3001.67, some issues will [45 FR 83226, Dec. 18, 1980] be appropriate for determination on the basis of a less formal type of pres- § 3001.67b Requests involving experi- entation and counterpresentation. It is mental changes—unavailability of the policy of this section to identify data. these issues at the earliest possible If the Postal Service believes that time and to employ less formal proce- data required to be filed under § 3001.64 dures to resolve them where the inter- are unavailable, it shall explain their ests of expedition will be served there- unavailability as required by by. § 3001.64(a)(2)(i), (ii), and (iv). In par- (b) At the earliest possible time fol- ticular, if the experimental character lowing the filing of a request des- of the request bears on the unavail- ignated as experimental, or following ability of the data in question, the the determination of any question as Postal Service shall explain in detail to whether such designation is proper, the nexus between these cir- holding that such designation is prop- cumstances. A satisfactory explanation er, the parties will be required to file of the unavailability of data will be statements of the issues they perceive grounds for excluding from the pro- in the case. Each such statement shall ceeding a contention that the absence designate with particularity those of the data should form a basis for re- issues the party believes to be or in- jection of the request, unless the party volve genuine issues of material fact. desiring to make such contention (a) Any party designating an issue as a demonstrates that, having regard to all genuine issue of material fact wholly the facts and circumstances of the or in part because of the Postal Serv- case, it was clearly unreasonable for ice’s statement that data called for by the Postal Service to propose the § 3001.64 are unavailable shall comply change in question without having first with the requirements of § 3001.67b. Re- secured the data which are unavailable, sponsive statements will be permitted or (b) demonstrates other compelling

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and exceptional circumstances requir- Postal Service or of other parties with ing that the absence of the data in respect to the temporary implementa- question be treated as bearing on the tion of changes pursuant to section merits of the proposal. 3641 of the Act. [45 FR 83227, Dec. 18, 1980] [45 FR 83227, Dec. 18, 1980]

§ 3001.67c Requests involving experi- § 3001.68 Text of the Domestic Mail mental changes—plans for data col- Classification Schedule. lection. The Domestic Mail Classification (a) In any instance in which the Post- Schedule established in accordance al Service designates as unavailable with subchapter II of chapter 36 of title data called for by § 3001.64, it shall, as 39 of the United States Code appears part of its initial filing under that rule, (with blank rate schedules) as appendix either A to this subpart. (1) Describe with particularity the [50 FR 28144, July 10, 1985] means it proposes to employ to collect those data, or § 3001.69 Expedited minor classifica- (2) State with particularity the rea- tion cases—applicability. sons it believes establish that such (a) This section and §§ 3001.69a data are unnecessary. through 3001.69c apply in cases where The Commission may by order require the Postal Service requests a rec- data to be collected during the course ommended decision pursuant to section of the experiment which the Postal 3623 and seeks expedited review on the Service has not planned to collect, if it ground that the requested change in finds that a statement under paragraph mail classification is minor in char- (a)(2) of this section does not justify acter. The requirements and proce- the omission to collect the particular dures specified in these sections apply data in issue. exclusively to the Commission’s con- (b) In the case of data which are not sideration of requested mail classifica- required to be filed under § 3001.64, but tion changes which the Postal Service which the Postal Service intends to denominates as, and the Commission collect during and for the purposes of finds to be, minor in character. A re- the proposed experimental change, the quested classification change may be Postal Service shall include in its ini- considered to be minor in character if tial filing a detailed description of the it: data involved, the uses to which they (1) Would not involve a change in any would be put, and the methods to be existing rate or fee; employed in collecting them. (2) Would not impose any restriction [45 FR 83227, Dec. 18, 1980] in addition to pre-existing conditions of eligibility for the entry of mail in an § 3001.67d Requests involving experi- existing subclass or category of serv- mental changes—time limit. ice, or for an existing rate element or The Commission will treat cases fall- work sharing discount; and ing under §§ 3001.67 through 3001.67d as (3) Would not significantly increase subject to the maximum expedition or decrease the estimated institutional consistent with procedural fairness. cost contribution of the affected sub- The schedule for adoption of a rec- class or category of service. ommended decision will therefore be (b) This section and §§ 3001.69a established, in each such case, to allow through 3001.69c are effective November for issuance of such decision not more 28, 2001 through November 28, 2006. than 150 days from the determination [66 FR 54440, Oct. 29, 2001] of any issue as to the propriety of experimental treatment under § 3001.67 (b) § 3001.69a Expedited minor classifica- and (c) in a sense favorable to such tion cases—filing of formal request treatment, or from the date of the fil- and prepared direct evidence. ing of the request, whichever occurs (a) Whenever the Postal Service de- later. Nothing in this section shall be termines to request that the Commis- construed to affect the rights of the sion submit a decision recommending a

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mail classification change, and to seek (2) Demonstrates other compelling expedited review on the ground that and exceptional circumstances requir- the requested change is minor in char- ing that the absence of the information acter, it shall file a request for a in question be treated as bearing on change in mail classification pursuant the merits of the proposal. to section 3623 that comports with the [66 FR 54440, Oct. 29, 2001] requirements of this section and of subpart C of this part. Each such formal § 3001.69b Expedited minor classifica- request shall include the following par- tion cases—expedition of proce- ticular information: dural schedule. (1) A description of the proposed clas- (a) The purpose of this section is to sification change or changes, including provide a schedule for expediting pro- proposed changes in the text of the Do- ceedings in which the Postal Service mestic Mail Classification Schedule requests that the Commission rec- and any pertinent rate schedules; ommend a change in mail classifica- (2) A thorough explanation of the tion and expedite consideration of that grounds on which the Postal Service request on the ground that the change submits that the requested change in is minor in character. mail classification is minor in char- (b) Persons who are interested in par- acter; and ticipating in proceedings to consider (3) An estimate, prepared in the Postal Service requests for minor greatest level of detail practicable, of changes in mail classification may in- the overall impact of the requested tervene pursuant to § 3001.20. Parties change in mail classification on postal may withdraw from a particular case costs and revenues, mail users, and by filing a notice with the Secretary of the Commission. competitors of the Postal Service. (c) When the Postal Service files a re- (b) If the Postal Service believes that quest under the provisions of §§ 3001.69 data required to be filed under § 3001.64 through 3001.69c, it shall comply with are unavailable, it shall explain their the standard Filing Online procedures unavailability, as required by of §§ 3001.9 through 3001.12. § 3001.64(a)(2)(i), (ii), and (iv). If the (d) When the Postal Service files a Postal Service believes that any of the request under the provisions of data or other information required to §§ 3001.69 through 3001.69c, it shall on be filed under § 3001.64 should not be re- that same day file a notice that briefly quired in light of the minor character describes its proposal. This notice shall of the requested change in mail classi- indicate on its first page that it is a fication, it shall move for a waiver of notice of a request for a minor change that requirement, stating with particu- in mail classification to be considered larity the reasons why the character of under §§ 3001.69 through 3001.69c, and the request and its circumstances jus- identify the last day for filing a notice tify a waiver of the requirement. A sat- of intervention with the Commission. isfactory explanation of the unavail- (e) Within 5 days after receipt of a ability of information required under Postal Service request invoking the op- § 3001.64, or of why it should not be re- eration of §§ 3001.69 through 3001.69c, quired to support a particular request, the Commission shall issue a notice of will be grounds for excluding from the proceeding and provide for intervention proceeding a contention that the ab- by interested parties pursuant to sence of the information should form a § 3001.20. The notice of proceeding shall basis for rejection of the request, un- state that the Postal Service has de- less the party desiring to make such nominated the mail classification contention change it requests a minor change, and (1) Demonstrates that, having regard has requested expedited consideration to all the facts and circumstances of pursuant to §§ 3001.69 through 3001.69c. the case, it was clearly unreasonable The notice shall further state the for the Postal Service to propose the grounds on which the Postal Service change in question without having first submits that the requested change in secured the information and submitted mail classification is minor in char- it in accordance with § 3001.64; or acter, and shall afford all interested

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parties 26 days after filing of the Postal section (f). Testimony responsive to Service’s request within which to in- the Postal Service request will be due tervene, submit responses to the Postal 14 days after the conclusion of hearings Service’s request for consideration of on the Postal Service request. its proposed mail classification change [66 FR 54440, Oct. 29, 2001, as amended at 68 under the terms of §§ 3001.69 through FR 12590, Mar. 17, 2003] 3001.69c, and request a hearing. (f) Within 28 days after publication of § 3001.69c Expedited minor classifica- the notice of proceeding pursuant to tion cases—time limits. subsection (e), the Commission shall The Commission will treat cases to decide whether to consider the request which §§ 3001.69 through 3001.69c apply of the Postal Service as a minor classi- as subject to the maximum expedition fication change request under §§ 3001.69 consistent with procedural fairness. through 3001.69c, and shall issue an The schedule for adoption of a recorder in the proceeding incorporating ommended decision will therefore be that ruling. The Commission shall established, in each such case, to allow order a request to be considered under for issuance of such decision not more §§ 3001.69 through 3001.69c if it finds than 90 days after the filing of the re- that: quest of the Postal Service if no hear- (1) The requested classification ing is held, and not more than 120 days change is minor in character, and after the filing of the request if a hear- (2) The effects of the requested ing is scheduled. change are likely to be appropriately limited in scope and overall impact. [66 FR 54440, Oct. 29, 2001] (g) If the Commission determines APPENDIX A TO SUBPART C—POSTAL that the request of the Postal Service SERVICE RATES AND CHARGES is not appropriate for consideration as a minor classification change request, TABLE OF CONTENTS no further procedures under §§ 3001.69 Classification Schedule 100—Expedited Mail through 3001.69c shall be ordered, and the request will be considered in ac- Sec. cordance with other appropriate provi- 110 Definition sions of Subpart C of this part. 120 Description of Services 121 Same Day Airport Service (h) If the Commission determines 122 Custom Designed Service that the Postal Service request is ap- 123 Next Day Service and Second Day Serv- propriate for consideration under ice §§ 3001.69 through 3001.69c, those re- 130 Physical Limitations spondents who request a hearing shall 140 Postage and Preparation be directed to state with specificity 150 Deposit and Delivery 151 Deposit within 14 days after publication of the 152 Receipt notice the issues of material fact that 153 Service require a hearing for resolution. Re- 154 Forwarding and Return spondents shall also identify the fact 160 Ancillary Services or facts set forth in the Postal Serv- 170 Rates and Fees ice’s filing that the party disputes, and 180 Refunds when possible, what the party believes 181 Procedure 182 Availability to be the true fact or facts and the evidence it intends to provide in support Classification Schedule 200—First-Class Mail of its position. Sec. (i) The Commission will hold hear- 210 Definition ings on a Postal Service request which 220 Description of Subclasses is considered under §§ 3001.69 through 221 Letters and Sealed Parcels Subclass 3001.69c when it determines that there 222 Cards Subclass are genuine issues of material fact to 223 Priority Mail Subclass be resolved, and that a hearing is need- 230 Physical Limitations 231 Size and Weight ed to resolve those issues. Hearings on 232 Nonstandard Size Mail the Postal Service request will com- 240 Postage and Preparation mence within 21 days after issuance of 250 Deposit and Delivery the Commission order pursuant to sub- 251 Deposit

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252 Service 451 Deposit 253 Forwarding and Return 452 Service 260 Ancillary Services 453 Forwarding and Return 270 Rates and Fees 470 Rates and Fees 280 Authorizations and Licenses 480 Authorizations and Licenses Classification Schedules 300—Standard Mail 481 Entry Authorizations 482 Preferred Rate Authorization Sec. 483 Mailing by Publishers and News Agents 310 Definition 484 Fees 311 General 312 Printed Matter General Definitions, Terms and Conditions— 313 Written Additions Sections 1000 through 6030 320 Description of Subclasses 321 Subclasses Limited to Mail Weighing Sec. Less Than 16 Ounces 910 Addressing 322 Subclasses Limited to Mail Weighing 16 911 Address Correction Service Ounces or More 912 Mailing List Services 323 Subclasses with No 16–Ounce Limitation 920 Delivery Alternatives 330 Physical Limitations 921 Post Office Box and Caller Service 331 Size 930 Payment Alternatives 332 Weight 931 Business Reply Mail 333 Nonstandard Size Mail 932 Merchandise Return Service 340 Postage and Preparation 933 On-Site Meter Setting 341 Postage 934 Reserved 342 Preparation 935 Bulk Parcel Return Service 343 Non-Identical Pieces 936 Shipper-Paid Forwarding 344 Attachments and Enclosures 350 Deposit and Delivery 940 Accountability & Receipts 351 Deposit 941 Certified Mail 352 Service 942 Registered Mail 353 Forwarding and Return 943 Insurance 360 Ancillary Services 944 Collect on Delivery 361 All Subclasses 945 Return Receipt 362 Parcel Post, Bound Printed Matter, Spe- 946 Restricted Delivery cial, and Library Subclasses 947 Certificate of Mailing 370 Rates and Fees 948 Delivery Confirmation 380 Authorizations and Licenses 950 Parcel Handling 381 Regular, Enhanced Carrier Route, and 951 Parcel Airlift (PAL) Nonprofit Subclasses 952 Special Handling 382 Special and Library Subclasses 960 Stamped Paper 383 Parcel Post Subclass 961 Stamped Envelopes Classification Schedule 400—Periodicals 962 Stamped Cards 970 Postal Money Orders Sec. 971 Domestic Postal Money Orders 410 Definition 411 General Requirements Classification Schedule 900—Special Services 412 General Publications 413 Requester Publications Rate Schedules 414 Publications of Institutions and Soci- EXPEDITED MAIL CLASSIFICATION SCHEDULE eties 415 Publications of State Departments of 110 DEFINITION Agriculture 416 Foreign Publications Expedited Mail is mail matter entered as 420 Description of Subclasses Express Mail under the provisions of this 421 Regular Subclass Schedule. Any matter eligible for mailing 422 [Reserved] may, at the option of the mailer, be mailed 423 Preferred Rate Periodicals as Express Mail. Insurance is either included 430 Physical Limitations in Express Mail postage or is available for an 440 Postage and Preparation additional charge, depending on the value 441 Postage and nature of the item sent by Express Mail. 442 Presortation 443 Attachments and Enclosures 120 DESCRIPTION OF SERVICES 444 Identification 121 SAME DAY AIRPORT SERVICE 445 Filing of Information 446 Enclosures and Supplements Same Day Airport service is available be- 450 Deposit and Delivery tween designated airport mail facilities.

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122 CUSTOM DESIGNED SERVICE 140 POSTAGE AND PREPARATION 122.1 General. Custom Designed service is Except as provided in Rate Schedules 121, available between designated postal facili- 122 and 123, postage on Express Mail is ties or other designated locations for mail- charged on each piece. For shipments ten- able matter tendered under a service agree- dered in Express Mail pouches under a serv- ment between the Postal Service and the ice agreement, each pouch is a piece. mailer. Service under a service agreement shall be offered in a manner consistent with 150 DEPOSIT AND DELIVERY 39 U.S.C. 403(c). 151 DEPOSIT 122.2 Service Agreement. A service agreement shall set forth the following: Express Mail must be deposited at places a. The scheduled place for each shipment designated by the Postal Service. tendered for service to each specific destination; 152 RECEIPT b. Scheduled place for claim, or delivery, A receipt showing the time and date of at destination for each scheduled shipment; mailing will be provided to the mailer upon c. Scheduled time of day for tender at ori- acceptance of Express Mail by the Postal gin and for claim or delivery at destination. Service. This receipt serves as evidence of 122.3 Pickup and Delivery. Pickup at the mailing. mailer’s premises, and/or delivery at an address other than the destination postal facil- 153 SERVICE ity is provided under terms and conditions as Express Mail service provides a high speed, specified by the Postal Service. high reliability service. Same Day Airport 122.4 Commencement of Service Agree- Express Mail will be dispatched on the next ment. Service provided pursuant to a service available transportation to the destination agreement shall commence not more than 10 airport mail facility. Custom Designed Ex- days after the signed service agreement is press Mail will be available for claim or de- tendered to the Postal Service. livery as specified in the service agreement. 122.5 Termination of Service Agreement 122.51 Termination by Postal Service. Ex- 154 FORWARDING AND RETURN press Mail service provided pursuant to a service agreement may be terminated by the When Express Mail is returned, or for- Postal Service upon 10 days prior written no- warded, as specified by the Postal Service, tice to the mailer if: there will be no additional charge. a. Service cannot be provided for reasons 160 ANCILLARY SERVICES beyond the control of the Postal Service or because of changes in Postal Service facili- The following services may be obtained in ties or operations, or conjunction with mail sent under this classi- b. The mailer fails to adhere to the terms fication schedule upon payment of applicable of the service agreement or this schedule. fees: 122.52. Termination by Mailers. The mailer may terminate a service agreement, for Service Schedule any reason, by notice to the Postal Service. a. Address correction ...... 911 b. Return receipts ...... 945 123 NEXT DAY SERVICE AND SECOND DAY c. COD ...... 944 SERVICE d. Express Mail Insurance ...... 943 123.1 Availability of Services. Next Day and Second Day Services are available at 170 RATES AND FEES designated retail postal facilities to designated destination facilities or locations for The rates for Express Mail are set forth in items tendered by the time or times speci- the following rate schedules: fied by the Postal Service. Next Day Service is available for overnight delivery. Second Schedule Day Service is available for second day deliv- a. Same Day Airport ...... 121 ery. b. Custom Designed ...... 122 123.2 Pickup Service. Pickup service is c. Next Day Post Office-to-Post Office ...... 123 available for Next Day and Second Day Serv- d. Second Day Post Office-to-Post Office ...... 123 ices under terms and conditions as specified e. Next Day Post Office-to-Addressee ...... 123 by the Postal Service. Service shall be of- f. Second Day Post Office-to-Addressee ...... 123 fered in a manner consistent with 39 U.S.C. 403(c). 180 REFUNDS

130 PHYSICAL LIMITATIONS 181 PROCEDURE Express Mail may not exceed 70 pounds or Claims for refunds of postage must be filed 108 inches in length and girth combined. within the period of time and under terms

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and conditions specified by the Postal Serv- cifically permitted by sections 312, 313, 323, ice. 344.22, and 446; and d. Bills and statements of account. 182 AVAILABILITY 220 DESCRIPTION OF SUBCLASSES 182.1 Same Day Airport. The Postal Serv- ice will refund the postage for Same Day Air- 221 LETTERS AND SEALED PARCELS SUBCLASS port Express Mail not available for claim by the time specified, unless the delay is caused 221.1 General. The Letters and Sealed by: Parcels subclass consists of First-Class Mail a. Strikes or work stoppage; weighing 13 ounces or less that is not mailed b. Delay or cancellation of flights; or under section 222 or 223. c. Governmental action beyond the control 221.2 Regular Rate Categories. The reg- of Postal Service or air carriers. ular rate categories consist of Letters and 182.2 Custom Designed. Except where a Sealed Parcels subclass mail not mailed service agreement provides for claim, or de- under section 221.3. livery, of Custom Designed Express Mail 221.21 Single-Piece Rate Category. The more than 24 hours after scheduled tender at single-piece rate category applies to regular point of origin, the Postal Service will re- rate Letters and Sealed Parcels subclass fund postage for such mail not available for mail not mailed under section 221.22 or claim, or not delivered, within 24 hours of 221.24. mailing, unless the item was delayed by 221.22 Presort Rate Category. The presort strike or work stoppage. rate category applies to Letters and Sealed 182.3 Next Day. Unless the item was de- Parcels subclass mail that: layed by strike or work stoppage, the Postal a. Is prepared in a mailing of at least 500 Service will refund postage for Next Day Ex- pieces; press Mail not available for claim or not de- b. Is presorted, marked, and presented as livered: specified by the Postal Service; and a. By 10:00 a.m., or earlier time(s) specified c. Meets the addressing and other prepara- by the Postal Service, of the next delivery tion requirements prescribed by the Postal day in the case of Post Office-to-Post Office Service. service; 221.23 [Reserved] b. By 3:00 p.m., or earlier time(s) specified 221.24 Qualified Business Reply Mail Rate by the Postal Service, of the next delivery Category. The qualified business reply mail day in the case of Post Office-to-Addressee rate category applies to Letters and Sealed service. Parcels subclass mail that: 182.4 Second Day. Unless the item was de- a. Is provided to senders by the recipient, layed by strike or work stoppage, the Postal an advance deposit account business reply Service will refund postage for Second Day mail permit holder, for return by mail to the Express Mail not available for claim or not recipient; delivered: b. Bears the recipient’s preprinted ma- a. By 10:00 a.m., or earlier time(s) specified chine-readable return address, a barcode rep- by the Postal Service, of the second delivery resenting not more than 11 digits (not in- day in the case of Post Office-to-Post Office cluding ‘‘correction’’ digits), a Facing Identi- service; fication Mark, and other markings specified b. By 3:00 p.m., or earlier time(s) specified and approved by the Postal Service; and by the Postal Service, of the second delivery c. Meets the letter machinability and other day in the case of Post Office-to-Addressee preparation requirements specified by the service. Postal Service. 221.25 [Reserved] FIRST-CLASS MAIL CLAFFIFICATION SCHEDULE 221.26 Nonstandard Size Surcharge. Reg- ular rate category Letters and Sealed Par- 210 DEFINITION cels subclass mail is subject to a surcharge if Any matter eligible for mailing may, at it is nonstandard size mail, as defined in sec- the option of the mailer, be mailed as First- tion 232. Class Mail. The following must be mailed as 221.27 Presort Discount for Pieces Weigh- First-Class Mail, unless mailed as Express ing More Than Two Ounces. Presort rate cat- Mail or exempt under title 39, United States egory Letters and Sealed Parcels subclass Code, or except as authorized under sections mail is eligible for an additional presort dis- 344.12, 344.23 and 443: count on each piece weighing more than two a. Mail sealed against postal inspection as ounces. set forth in section 5000; 221.3 Automation Rate Categories—Letters b. Matter wholly or partially in hand- and Flats writing or typewriting except as specifically permitted by sections 312, 313, 323, 344.22, and 221.31 General. The automation rate cat- 446; egories consist of Letters and Sealed Parcels c. Matter having the character of actual subclass mail weighing 13 ounces or less and personal correspondence except as spe- that:

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a. Is prepared in a mailing of at least 500 222.12 Double Cards. Double Stamped pieces; Cards or double postcards may be mailed as b. Is presorted, marked, and presented as Stamped Cards or postcards. Double specified by the Postal Service; Stamped Cards are defined in section 962.12. c. Bears a barcode representing not more A double postcard consists of two attached than 11 digits (not including ‘‘correction’’ cards, one of which may be detached by the digits) as specified by the Postal Service; receiver and returned by mail as a single and postcard. d. Meets the machinability, addressing, 222.2 Restriction. A mailpiece with any of barcoding, and other preparation require- the following characteristics is not mailable ments prescribed by the Postal Service. as a Stamped Card or postcard unless it is 221.32 Basic Rate Category. The basic rate prepared as specified by the Postal Service: category applies to letter-size automation a. Numbers or letters unrelated to postal rate category mail not mailed under section purposes appearing in the address portion of 221.33, 221.34, or 221.35. the card; 221.33 Three-Digit Rate Category. The b. Punched holes; three-digit rate category applies to letter- c. Vertical tearing guide; size automation rate category mail presorted d. An address portion which is smaller to single or multiple three-digit ZIP Code than the remainder of the card. destinations as specified by the Postal Serv- ice. 222.3 Regular Rate Categories 221.34 Five-Digit Rate Category. The five- 222.31 Single-Piece Rate Category. The digit rate category applies to letter-size au- single-piece rate category applies to regular tomation rate category mail presorted to rate Cards subclass mail not mailed under single or multiple five-digit ZIP Code des- section 222.32 or 222.34. tinations as specified by the Postal Service. 222.32 Presort Rate Category. The presort 221.35 Carrier Route Rate Category. The rate category applies to Cards subclass mail carrier route rate category applies to letter- that: size automation rate category mail presorted a. Is prepared in a mailing of at least 500 to carrier routes. It is available only for pieces; those carrier routes specified by the Postal b. Is presorted, marked, and presented as Service. specified by the Postal Service; and 221.36 Basic Flats Rate Category. The c. Meets the addressing and other prepara- basic flats rate category applies to flat-size tion requirements specified by the Postal automation rate category mail not mailed Service. under section 221.37. 222.33 [Reserved] 221.37 Three- and Five-Digit Flats Rate Category. The three- and five-digit flats rate 222.34 Qualified Business Reply Mail Rate category applies to flat-size automation rate Category. The qualified business reply mail category mail presorted to single or multiple rate category applies to Cards subclass mail three- and five-digit ZIP Code destinations that: as specified by the Postal Service. a. Is provided to senders by the recipient, 221.38 Nonstandard Size Surcharge. Flat- an advance deposit account business reply size automation rate category pieces are sub- mail permit holder, for return by mail to the ject to a surcharge if they are nonstandard recipient; size mail, as defined in section 232. b. Bears the recipient’s preprinted ma- 221.39 Presort Discount for Pieces Weigh- chine-readable return address, a barcode rep- ing More Than Two Ounces. Presorted auto- resenting not more than 11 digits (not in- mation rate category mail is eligible for an cluding ‘‘correction’’ digits), a Facing Identi- additional presort discount on each piece fication Mark, and other markings specified weighing more than two ounces. and approved by the Postal Service; and c. Meets the card machinability and other 222 CARDS SUBCLASS preparation requirements specified by the Postal Service. 222.1 Definition 222.4 Automation Rate Categories 222.11 Cards. The Cards subclass consists of Stamped Cards, defined in section 962.11, 222.41 General. The automation rate cat- and postcards. A postcard is a privately egories consist of Cards subclass mail that: printed mailing card for the transmission of a. Is prepared in a mailing of at least 500 messages. To be eligible to be mailed as a pieces; First-Class postcard, a card must be of uni- b. Is presorted, marked, and presented as form thickness and must not exceed any of specified by the Postal Service; the following dimensions: c. Bears a barcode representing not more a. 6 inches in length; than 11 digits (not including ‘‘correction’’ b. 41⁄4 inches in width; digits) as specified by the Postal Service; c. 0.016 inch in thickness. and

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d. Meets the machinability, addressing, b. It exceeds any of the following dimen- barcoding, and other preparation require- sions: ments specified by the Postal Service. i. 11.5 inches in length; 222.42 Basic Rate Category. The basic rate ii. 6.125 inches in width; or category applies to automation rate cat- iii. 0.25 inch in thickness. egory cards not mailed under section 222.43, 222.44, or 222.45. 240 POSTAGE AND PREPARATION 222.43 Three-Digit Rate Category. The three-digit rate category applies to automa- Postage on First-Class Mail must be paid tion rate category cards presorted to single as set forth in section 3000. Postage is com- or multiple three-digit ZIP Code destina- puted separately on each piece of mail. tions as specified by the Postal Service. Pieces not within the same postage rate in- 222.44 Five-Digit Rate Category. The five- crement may be mailed at other than a sin- digit rate category applies to automation gle-piece rate as part of the same mailing rate category cards presorted to single or only when specific methods approved by the multiple five-digit ZIP Code destinations as Postal Service for determining and verifying specified by the Postal Service. postage are followed. All mail mailed at other than a single-piece rate must have 222.45 Carrier Route Rate Category. The postage paid in a manner not requiring can- carrier route rate category applies to auto- cellation. mation rate category cards presorted to carrier routes. It is available only for those car- 250 DEPOSIT AND DELIVERY rier routes specified by the Postal Service. 251 DEPOSIT 223 PRIORITY MAIL SUBCLASS First-Class Mail must be deposited at 223.1 General. The Priority Mail subclass places and times designated by the Postal consists of: Service. a. First-Class Mail weighing more than 13 ounces; and 252 SERVICE b. Any mailable matter which, at the option of the mailer, is mailed for expeditious First-Class Mail receives expeditious han- mailing and transportation. dling and transportation, except that when 223.2 Single-Piece Priority Mail Rate Cat- First-Class Mail is attached to or enclosed egory. The single-piece Priority Mail rate with mail of another class, the service of category applies to Priority Mail subclass that class applies. mail not mailed under section 223.4. 253 FORWARDING AND RETURN 223.3–223.4 [Reserved] 223.5 Flat Rate Envelope. Priority Mail First-Class Mail that is undeliverable-as- subclass mail sent in a ‘‘flat rate’’ envelope addressed is forwarded or returned to the provided by the Postal Service is charged the sender without additional charge. two-pound rate. 223.6 Pickup Service. Pickup service is 260 ANCILLARY SERVICES available for Priority Mail subclass mail First-Class Mail, except as otherwise under terms and conditions specified by the noted, will receive the following additional Postal Service. services upon payment of the fees prescribed 223.7 Bulky Parcels. Priority Mail sub- in the corresponding schedule: class mail weighing less than 15 pounds, and measuring over 84 inches in length and girth Service Schedule combined, is charged a minimum rate equal to that for a 15-pound parcel for the zone to a. Address which the piece is addressed. correction ... 911 b. Business 230 PHYSICAL LIMITATIONS reply mail .... 931 c. Certificates 231 SIZE AND WEIGHT of mailing .... 947 d. Certified First-Class Mail may not exceed 70 pounds mail ...... 941 or 108 inches in length and girth combined. e. COD ...... 944 Additional size and weight limitations apply f. Insurance .... 943 to individual First-Class Mail subclasses. g. Registered mail ...... 942 232 NONSTANDARD SIZE MAIL h. Return re- Letters and Sealed Parcels subclass mail ceipt (limited to merchan- weighing one ounce or less is nonstandard dise sent by size if: Priority Mail) 945 a. Its aspect ratio does not fall between 1 i. Merchandise to 1.3 and 1 to 2.5 inclusive; or return ...... 932

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Service Schedule 312 PRINTED MATTER

j. Delivery Printed matter, including printed letters Confirmation which according to internal evidence are (limited to being sent in identical terms to several per- Priority Mail) 948 sons, but which do not have the character of actual or personal correspondence, may be 270 RATES AND FEES mailed as Standard Mail. Printed matter does not lose its character as Standard Mail 271 The rates for First-Class Mail are set when the date and name of the addressee and forth in the following schedules: of the sender are written thereon. For the purposes of the Standard Mail Classification Schedule Schedule, ‘‘printed’’ does not include repro- a. Letters and Sealed Parcels ...... 221 duction by handwriting or typewriting. b. Cards ...... 222 313 WRITTEN ADDITIONS c. Priority Mail ...... 223 Standard Mail may have the following 272 Keys and Identification Devices. Keys, written additions placed on the wrapper, on identification cards, identification tags, or a tag or label attached to the outside of the similar identification devices that: parcel, or inside the parcel, either loose or a. Weigh no more than 2 pounds; attached to the article: b. Are mailed without cover; and a. Marks, numbers, name, or letters de- c. Bear, contain, or have securely attached scriptive of contents; the name and address information, as speci- b. ‘‘Please Do Not Open Until Christmas,’’ fied by the Postal Service, of a person, orga- or words of similar import; nization, or concern, with instructions to re- c. Instructions and directions for the use of turn to the address and a statement guaran- an article in the package; teeing the payment of postage due on deliv- d. Manuscript dedication or inscription not ery; are subject to the following rates and in the nature of personal correspondence; fees: e. Marks to call attention to any word or i. The applicable single-piece rates in passage in text; schedules 221 or 223; f. Corrections of typographical errors in ii. The fee set forth in fee schedule 931 for printed matter; payment of postage due charges if an active g. Manuscripts accompanying related proof business reply mail advance deposit account sheets, and corrections in proof sheets to in- is not used, and clude: corrections of typographical and other iii. If applicable, the surcharge for non- errors, alterations of text, insertion of new standard size mail, as defined in section 232. text, marginal instructions to the printer, and rewrites of parts if necessary for correc- 280 AUTHORIZATIONS AND LICENSES tion; h. Handstamped imprints, except when the The fee set forth in Schedule 1000 must be added matter is itself personal or converts paid once each year at each office of mailing the original matter to a personal commu- by any person who mails other than single– nication; piece First-Class Mail or courtesy envelope i. An invoice. mail. Payment of the fee allows the mailer to mail at any First-Class rate. 320 DESCRIPTION OF SUBCLASSES

STANDARD MAIL CLASSIFICATION SCHEDULE 321 [RESERVED]

310 DEFINITION 321.1 Single Piece Subclass

311 GENERAL 321.11 Definition. The Single Piece subclass consists of Standard Mail weighing less Any mailable matter may be mailed as than 16 ounces that is not mailed under sec- Standard Mail except: tions 321.2, 321.3, 321.4, 321.5 or 323. a. Matter required to be mailed as First- 321.12 Basic Rate Category. The basic rate Class Mail; category applies to Single Piece subclass b. Copies of a publication that is entered as mail not mailed under section 321.13. Periodicals class mail, except copies sent by 321.13 Keys and Identification Devices a printer to a publisher, and except copies Rate Category. The keys and identification that would have traveled at the former sec- devices rate category applies to keys, identi- ond-class transient rate. (The transient rate fication cards, identification tags, or similar applied to individual copies of second-class identification devices mailed without cover, mail (currently Periodicals class mail) for- and which bear, contain, or have securely at- warded and mailed by the public, as well as tached the name and complete address of a to certain sample copies mailed by pub- person, organization, or concern, with in- lishers.) structions to return to such address and a

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statement guaranteeing the payment of applies to flat-size automation rate category postage due on delivery. mail not mailed under section 321.236. 321.14 Nonstandard Size Surcharge. Single 321.236 Three- and Five-Digit Barcoded Piece subclass mail, other than that mailed Flats Rate Category. The three- and five- under section 321.13, is subject to a surcharge digit barcoded flats rate category applies to if it is nonstandard size mail, as defined in flat-size automation rate category mail section 333. presorted to single or multiple three- and five-digit ZIP Code destinations as specified 321.2 Regular Subclass by the Postal Service. 321.21 General. The Regular subclass con- 321.24 Destination Entry Discount. The sists of Standard Mail weighing less than 16 destination entry discounts apply to Regular ounces that is not mailed under sections subclass mail prepared as specified by the 321.3, 321.4, 321.5 or 323. Postal Service and addressed for delivery 321.22 Presort Rate Categories within the service area of the BMC (or auxil- 321.221 General. The presort rate cat- iary service facility), or sectional center fa- egories apply to Regular subclass mail that: cility (SCF), at which it is entered, as de- a. Is prepared in a mailing of at least 200 fined by the Postal Service. addressed pieces or 50 pounds of addressed 321.25 Residual Shape Surcharge. Regular pieces; subclass mail is subject to a surcharge if it b. Is presorted, marked, and presented as is prepared as a parcel or if it is not letter or specified by the Postal Service; and flat shaped. c. Meets the machinability, addressing, and other preparation requirements specified 321.3 Enhanced Carrier Route Subclass by the Postal Service. 321.31 Definition. The Enhanced Carrier 321.222 Basic Rate Categories. The basic Route subclass consists of Standard Mail rate categories apply to presort rate cat- weighing less than 16 ounces that is not egory mail not mailed under section 321.223. mailed under section 321.2, 321.4, 321.5 or 323, 321.223 Three- and Five-Digit Rate Cat- and that: egories. The three- and five-digit rate cat- a. Is prepared in a mailing of at least 200 egories apply to presort rate category mail addressed pieces or 50 pounds of addressed presorted to single or multiple three- and pieces; five-digit ZIP Code destinations as specified b. Is prepared, marked, and presented as by the Postal Service. specified by the Postal Service; c. Is presorted to carrier routes as specified 321.23 Automation Rate Categories by the Postal Service; 321.231 General. The automation rate cat- d. Is sequenced as specified by the Postal egories apply to Regular subclass mail that: Service; and a. Is prepared in a mailing of at least 200 e. Meets the machinability, addressing, addressed pieces or 50 pounds of addressed and other preparation requirements specified pieces; by the Postal Service. b. Is presorted, marked, and presented as 321.32 Basic Rate Category. The basic rate specified by the Postal Service; category applies to Enhanced Carrier Route c. Bears a barcode representing not more subclass mail not mailed under section than 11 digits (not including ‘‘correction’’ 321.33, 321.34 or 321.35. digits) as specified by the Postal Service; 321.33 Basic Pre-Barcoded Rate Category. d. Meets the machinability, addressing, The basic pre-barcoded rate category applies barcoding, and other preparation require- to letter-size Enhanced Carrier Route sub- ments specified by the Postal Service. class mail which bears a barcode rep- 321.232 Basic Barcoded Rate Category. resenting not more than 11 digits (not in- The basic barcoded rate category applies to cluding ‘‘correction’’ digits), as specified by letter-size automation rate category mail the Postal Service, and which meets the ma- not mailed under section 321.233 or 321.234. chinability, addressing, and barcoding speci- 321.233 Three- Digit Barcoded Rate Cat- fications and other preparation requirements egory. The three-digit barcoded rate cat- specified by the Postal Service. egory applies to letter-size automation rate 321.34 High Density Rate Category. The category mail presorted to single or multiple high density rate category applies to En- three-digit ZIP Code destinations as speci- hanced Carrier Route subclass mail pre- fied by the Postal Service. sented in walk-sequence order and meeting 321.234 Five-Digit Barcoded Rate Cat- the high density requirements specified by egory. The five-digit barcoded rate category the Postal Service. applies to letter-size automation rate cat- 321.35 Saturation Rate Category. The egory mail presorted to single or multiple saturation rate category applies to Enhanced five-digit ZIP Code destinations as specified Carrier Route subclass mail presented in by the Postal Service. walk-sequence order and meeting the satura- 321.235 Basic Barcoded Flats Rate Cat- tion requirements specified by the Postal egory. The basic barcoded flats rate category Service.

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321.36 Destination Entry Discounts. Des- a. Is prepared in a mailing of at least 200 tination entry discounts apply to Enhanced addressed pieces or 50 pounds of addressed Carrier Route subclass mail prepared as pieces; specified by the Postal Service and addressed b. Is presorted, marked, and presented as for delivery within the service area of the specified by the Postal Service; and BMC (or auxiliary service facility), sectional c. Meets the machinability, addressing, center facility (SCF), or destination delivery and other preparation requirements specified unit (DDU) at which it is entered, as defined by the Postal Service. by the Postal Service. 321.422 Basic Rate Categories. The basic 321.37 Residual Shape Surcharge. En- rate categories apply to presort rate cat- hanced Carrier Route subclass mail is sub- egory mail not mailed under section 321.423. ject to a surcharge if it is prepared as a par- 321.423 Three-and Five-Digit Rate Cat- cel or if it is not letter or flat shaped. egories. The three-and five-digit rate categories apply to presort rate category mail 321.4 Nonprofit Subclass presorted to single or multiple three-and five-digit ZIP Code destinations as specified 321.41 General. The Nonprofit subclass by the Postal Service. consists of Standard Mail weighing less than 321.43 Automation Rate Categories 16 ounces that is not mailed under section 321.431 General. The automation rate cat- 321.2, 321.3, 321.5 or 323, and that is mailed by egories apply to Nonprofit subclass mail authorized nonprofit organizations or asso- that: ciations of the following types: a. Is prepared in a mailing of at least 200 a. Religious, as defined in section 1009, addressed pieces or 50 pounds of addressed b. Educational, as defined in section 1009, pieces; c. Scientific, as defined in section 1009, b. Is presorted, marked, and presented as d. Philanthropic, as defined in section 1009, specified by the Postal Service; e. Agricultural, as defined in section 1009, c. Bears a barcode representing not more f. Labor, as defined in section 1009, than 11 digits (not including ‘‘correction’’ g. Veterans’, as defined in section 1009, digits) as specified by the Postal Service; h. Fraternal, as defined in section 1009, d. Meets the machinability, addressing, i. Qualified political committees, barcoding, and other preparation require- j. State or local voting registration offi- ments specified by the Postal Service. cials when making a mailing required or au- 321.432 Basic Barcoded Rate Category. thorized by the National Voter Registration The basic barcoded rate category applies to Act of 1993. letter-size automation rate category mail 321.411 Qualified Political Committees. not mailed under section 321.433 or 321.434. 321.433 Three-Digit Barcoded Rate Cat- The term ‘‘qualified political committee’’ egory. The three-digit barcoded rate cat- means a national or State committee of a egory applies to letter-size automation rate political party, the Republican and Demo- category mail presorted to single or multiple cratic Senatorial Campaign Committees, the three-digit ZIP Code destinations as speci- Democratic National Congressional Com- fied by the Postal Service. mittee, and the National Republican Con- 321.434 Five-Digit Barcoded Rate Cat- gressional Committee: egory. The five-digit barcoded rate category a. The term ‘‘national committee’’ means applies to letter-size automation rate cat- the organization which, by virtue of the by- egory mail presorted to single or multiple laws of a political party, is responsible for five-digit ZIP Code destinations as specified the day-to-day operation of such political by the Postal Service. party at the national level; and 321.435 Basic Barcoded Flats Rate Cat- b. The term ‘‘State committee’’ means the egory. The basic barcoded flats rate category organization which, by virtue of the bylaws applies to flat-size automation rate category of a political party, is responsible for the mail not mailed under section 321.436. day-to-day operation of such political party 321.436 Three- and Five-Digit Barcoded at the State level. Flats Rate Category. The three- and five- 321.412 Limitation on Authorization. An digit barcoded flats rate category applies to organization authorized to mail at the non- flat-size automation rate category mail profit Standard rates for qualified nonprofit presorted to single or multiple three-and organizations may mail only its own matter five-digit ZIP Code destinations as specified at these rates. An organization may not del- by the Postal Service. egate or lend the use of its permit to mail at 321.44 Destination Entry Discounts. Des- nonprofit Standard rates to any other per- tination entry discounts apply to Nonprofit son, organization or association. subclass mail prepared as specified by the Postal Service and addressed for delivery 321.42 Presort Rate Categories within the service area of the BMC (or auxil- 321.421 General. The presort rate cat- iary service facility) or sectional center fa- egories apply to Nonprofit subclass mail cility (SCF) at which it is entered, as defined that: by the Postal Service.

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321.45 Residual Shape Surcharge. Non- 322 SUBCLASSES LIMITED TO MAIL WEIGHING profit subclass mail is subject to a surcharge 16 OUNCES OR MORE if it is prepared as a parcel or if it is not let- 322.1 Parcel Post Subclass ter or flat shaped. 322.11 Definition. The Parcel Post sub- 321.5 Nonprofit Enhanced Carrier Route class consists of Standard Mail weighing 16 Subclass ounces or more that is not mailed under sections 322.3, 323.1, or 323.2. 321.51 Definition. The Nonprofit Enhanced 322.12 Description of Rate Categories. Carrier Route subclass consists of Standard 322.121 Inter-BMC Rate Category. The Mail weighing less than 16 ounces that is not Inter-BMC rate category applies to all Par- mailed under section 321.2, 321.3, 321.4 or 323, cel Post subclass mail not mailed under sec- that is mailed by authorized nonprofit orga- tion 322.122, 322.123, 322.124, or 322.125. nizations or associations (as defined in sec- 322.122 Intra-BMC Rate Category. The tion 321.41) under the terms and limitations Intra-BMC rate category applies to Parcel stated in section 321.412, and that: Post subclass mail originating and desti- a. Is prepared in a mailing of at least 200 nating within a designated BMC or auxiliary addressed pieces or 50 pounds of addressed service facility service area, Alaska, Hawaii pieces; or Puerto Rico. b. Is prepared, marked, and presented as 322.123 Destination Bulk Mail Center specified by the Postal Service; (DBMC) Rate Category. The destination bulk c. Is presorted to carrier routes as specified mail center rate category applies to Parcel by the Postal Service; Post subclass mail prepared as specified by d. Is sequenced as specified by the Postal the Postal Service in a mailing of at least 50 Service; and pieces entered at a designated destination e. Meets the machinability, addressing, BMC, auxiliary service facility, or other and other preparation requirements specified equivalent facility, as specified by the Postal by the Postal Service. Service. 321.52 Basic Rate Category. The basic rate 322.124 Destination Sectional Center Fa- category applies to Nonprofit Enhanced Car- cility (DSCF) Rate Category. The destina- rier Route subclass mail not mailed under tion sectional center facility rate category section 321.53, 321.54 or 321.55. applies to Parcel Post subclass mail prepared 321.53 Basic Pre-Barcoded Rate Category. as specified by the Postal Service in a mail- The basic pre-barcoded rate category applies ing of at least 50 pieces sorted to five-digit to letter-size Nonprofit Enhanced Carrier destination ZIP Codes as specified by the Route subclass mail which bears a barcode Postal Service and entered at a designated representing not more than 11 digits (not in- destination processing and distribution cen- cluding ‘‘correction’’ digits), as specified by ter or facility, or other equivalent facility, the Postal Service, and which meets the ma- as specified by the Postal Service. chinability, addressing, and barcoding speci- 322.125 Destination Delivery Unit (DDU) fications and other preparation requirements Rate Category. The destination delivery unit specified by the Postal Service. rate category applies to Parcel Post subclass 321.54 High Density Rate Category. The mail prepared as specified by the Postal high density rate category applies to Non- Service in a mailing of at least 50 pieces, and profit Enhanced Carrier Route subclass mail entered at a designated destination delivery presented in walk-sequence order and meet- unit, or other equivalent facility, as speci- ing the high density requirements specified fied by the Postal Service. by the Postal Service. 322.13 Bulk Parcel Post. Bulk Parcel Post 321.55 Saturation Rate Category. The mail is Parcel Post mail consisting of prop- saturation rate category applies to Nonprofit erly prepared and separated single mailings Enhanced Carrier Route subclass mail pre- of at least 300 pieces or 2,000 pounds. Pieces sented in walk-sequence order and meeting weighing less than 15 pounds and measuring the saturation requirements specified by the over 84 inches in length and girth combined Postal Service. or pieces measuring over 108 inches in length 321.56 Destination Entry Discounts. Des- and girth combined are not mailable as Bulk tination entry discounts apply to Nonprofit Parcel Post mail. Enhanced Carrier Route subclass mail pre- 322.131 Barcoded Discount. The barcoded pared as specified by the Postal Service and discount applies to Bulk Parcel Post mail addressed for delivery within the service that is entered at designated facilities, bears area of the BMC (or auxiliary service facil- a barcode specified by the Postal Service, is ity), sectional center facility (SCF), or des- prepared as specified by the Postal Service, tination delivery unit (DDU) at which it is and meets all other preparation and machin- entered, as defined by the Postal Service. ability requirements of the Postal Service. 321.57 Residual Shape Surcharge. Non- 322.14 Bulk Mail Center (BMC) Presort profit subclass mail is subject to a surcharge Discounts. if it is prepared as a parcel or if it is not let- 322.141 BMC Presort Discount. The BMC ter or flat shaped. presort discount applies to Inter-BMC Parcel

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Post subclass mail that is prepared as speci- e. Is not stationery, such as pads of blank fied by the Postal Service in a mailing of 50 printed forms. or more pieces, entered at a facility author- 322.32 Single-Piece Rate Category. The ized by the Postal Service, and sorted to des- single-piece rate category applies to Bound tination BMCs, as specified by the Postal Printed Matter subclass mail which is not Service. mailed under section 322.33 or 322.34. 322.142 Origin Bulk Mail Center (OBMC) 322.33 Bulk Rate Category. The bulk rate Discount. The origin bulk mail center dis- category applies to Bound Printed Matter count applies to Inter-BMC Parcel Post sub- subclass mail prepared in a mailing of at class mail that is prepared as specified by least 300 pieces, prepared and presorted as the Postal Service in a mailing of at least 50 specified by the Postal Service. pieces, entered at the origin BMC, and sorted 322.34 Carrier Route Presort Rate Cat- to destination BMCs, as specified by the egory. The carrier route presort rate cat- Postal Service. egory applies to Bound Printed Matter sub- 322.15 Barcoded Discount. The barcoded class mail prepared in a mailing of at least discount applies to Inter-BMC, Intra-BMC, 300 pieces of carrier route presorted mail, and DBMC Parcel Post subclass mail that is prepared and presorted as specified by the entered at designated facilities, bears a Postal Service. barcode specified by the Postal Service, is 322.35 Barcoded Discount. The barcoded prepared as specified by the Postal Service discount applies to single-piece rate and in a mailing of at least 50 pieces, and meets bulk rate Bound Printed Matter subclass all other preparation and machinability re- mail that is entered at designated facilities, quirements of the Postal Service. bears a barcode specified by the Postal Serv- 322.16 Oversize Parcel Post. ice, is prepared as specified by the Postal 322.161 Excessive Length and Girth. Par- Service in a mailing of at least 50 pieces, and cel Post subclass mail pieces exceeding 108 meets all other preparation and machin- inches in length and girth combined, but not ability requirements of the Postal Service. greater than 130 inches in length and girth combined, are mailable. 323 SUBCLASSES WITH NO 16-OUNCE 322.162 Balloon Rate. Parcel Post subclass LIMITATION mail pieces exceeding 84 inches in length and 323.1 Special Subclass girth combined and weighing less than 15 pounds are subject to a rate equal to that for 323.11 Definition. The Special subclass a 15 pound parcel for the zone to which the consists of Standard Mail of the following parcel is addressed. types: 322.17 Nonmachinable Surcharge. Inter- a. Books, including books issued to supple- BMC Parcel Post subclass mail that does not ment other books, of at least eight printed meet machinability criteria specified by the pages, consisting wholly of reading matter or Postal Service is subject to a nonmachinable scholarly bibliography or reading matter surcharge. with incidental blank spaces for notations, 322.18 Pickup Service. Pickup service is and containing no advertising matter other available for Parcel Post subclass mail under than incidental announcements of books. terms and conditions specified by the Postal Not more than three of the announcements Service. may contain as part of their format a single order form, which may also serve as a post- 322.2 [Reserved] card. These order forms each time it appears subsection are in addition to and not in lieu 322.3 Bound Printed Matter Subclass of order forms which may be enclosed by vir- 322.31 Definition. The Bound Printed Mat- tue of any other provision; ter subclass consists of Standard Mail weigh- b. 16 millimeter or narrower width films ing at least 16 ounces, but not more than 15 which must be positive prints in final form pounds, which: for viewing, and catalogs of such films, of 24 a. Consists of advertising, promotional, di- pages or more, at least 22 of which are print- rectory, or editorial material, or any com- ed, except when sent to or from commercial bination thereof; theaters; b. Is securely bound by permanent fas- c. Printed music, whether in bound form or tenings including, but not limited to, sta- in sheet form; ples, spiral bindings, glue, and stitching; d. Printed objective test materials and ac- loose leaf binders and similar fastenings are cessories thereto used by or in behalf of edu- not considered permanent; cational institutions in the testing of abil- c. Consists of sheets of which at least 90 ity, aptitude, achievement, interests and percent are imprinted with letters, char- other mental and personal qualities with or acters, figures or images or any combination without answers, test scores or identifying of these, by any process other than hand- information recorded thereon in writing or writing or typewriting; by mark; d. Does not have the nature of personal e. Sound recordings, including incidental correspondence; announcements of recordings and guides or

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scripts prepared solely for use with such re- or fraternal organizations or associations, or cordings. Not more than three of the an- between such organizations and their mem- nouncements may contain as part of their bers, readers or borrowers. format a single order form, which may also b. Matter designated in section 323.214, serve as a postcard. These order forms are in mailed to or from schools, colleges, univer- addition to and not in lieu of order forms sities, public libraries, museums and which may be enclosed by virtue of any herbaria and to or from nonprofit religious, other provision; educational, scientific, philanthropic, agri- f. Playscripts and manuscripts for books, cultural, labor, veterans’ or fraternal organi- periodicals and music; zations or associations; or g. Printed educational reference charts, c. Matter designated in section 323.215, permanently processed for preservation; mailed from a publisher or a distributor to a h. Printed educational reference charts, in- school, college, university or public library. cluding but not limited to; 323.212 Definition of Nonprofit Organiza- i. Mathematical tables; tions and Associations. Nonprofit organiza- ii. Botanical tables; tions or associations are defined in section iii. Zoological tables; and 1009. iv. Maps produced primarily for edu- 323.213 Library subclass mail under sub- cational reference purposes; section a of section 323.211. Matter eligible i. Looseleaf pages and binders therefor, for mailing as Library subclass mail under consisting of medical information for dis- subsection a of section 323.211 consists of: tribution to doctors, hospitals, medical a. Books consisting wholly of reading mat- schools, and medical students; and ter or scholarly bibliography or reading mat- j. Computer-readable media containing ter with incidental blank spaces for nota- prerecorded information and guides or tions and containing no advertising other scripts prepared solely for use with such than incidental announcements of books; media. b. Printed music, whether in bound form or 323.12 Single-Piece Rate Category. The in sheet form; single-piece rate category applies to Special c. Bound volumes of academic theses in subclass mail not mailed under section 323.13 typewritten or other duplicated form; or 323.14. d. Periodicals, whether bound or unbound; 323.13 Level A Presort Rate Category. The e. Sound recordings; Level A presort rate category applies to f. Other library materials in printed, dupli- mailings of at least 500 pieces of Special sub- cated or photographic form or in the form of class mail, prepared and presorted to five- unpublished manuscripts; and digit destination ZIP Codes as specified by g. Museum materials, specimens, collec- the Postal Service. tions, teaching aids, printed matter and in- 323.14 Level B Presort Rate Category. The terpretative materials intended to inform Level B presort rate category applies to and to further the educational work and in- mailings of at least 500 pieces of Special sub- terest of museums and herbaria. class mail, prepared and presorted to des- 323.214 Library subclass mail under sub- tination Bulk Mail Centers as specified by section b of section 323.211. Matter eligible the Postal Service. for mailing as Library subclass mail under 323.15 Barcoded Discount. The barcoded subsection b of section 323.211 consists of: discount applies to single-piece rate and a. 16-millimeter or narrower width films; Level B presort rate Special subclass mail filmstrips; transparencies; slides; micro- that is entered at designated facilities, bears films; all of which must be positive prints in a barcode specified by the Postal Service, is final form for viewing; prepared as specified by the Postal Service b. Sound recordings; in a mailing of at least 50 pieces, and meets c. Museum materials, specimens, collec- all other preparation and machinability re- tions, teaching aids, printed matter, and in- quirements of the Postal Service. terpretative materials intended to inform and to further the educational work and in- 323.2 Library Subclass terests of museums and herbaria; d. Scientific or mathematical kits, instru- 323.21 Definition ments or other devices; 323.211 General. The Library subclass con- e. Catalogs of the materials in subsections sists of Standard Mail of the following types, a through d of section 323.214 and guides or separated or presorted as specified by the scripts prepared solely for use with such ma- Postal Service: terials. a. Matter designated in section 323.213, 323.215 Library subclass mail under sec- loaned or exchanged (including cooperative tion 323.211c. Matter eligible for mailing as processing by libraries) between: Library subclass mail under subsection c of i. Schools or colleges, or universities; section 323.211 consists of books, including ii. Public libraries, museums and herbaria, books to supplement other books, consisting nonprofit religious, educational, scientific, wholly of reading matter or scholarly bibli- philanthropic, agricultural, labor, veterans’ ography or reading matter with incidental

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blank spaces for notations, and containing 342 PREPARATION no advertising matter other than incidental All pieces in a Standard mailing must be announcements of books. separately addressed. All pieces in a Stand- 323.22 Single-Piece Rate Category. The ard mailing must be identified as specified single-piece rate category applies to Library by the Postal Service, and must contain the subclass mail not mailed under section 323.23 ZIP Code of the addressee when specified by or 323.24. the Postal Service. All Standard mailings 323.23 Level A Presort Rate Category. The must be prepared and presented as specified Level A presort rate category applies to by the Postal Service. Two or more Standard mailing of at least 500 pieces of Library sub- mailings may be commingled and mailed class mail, prepared and presorted to five- only when specific methods approved by the digit destination ZIP Codes as specified by Postal Service for determining and verifying the Postal Service. postage are followed. 323.24 Level B Presort Rate Category. The Level B presort rate category applies to 343 NON-IDENTICAL PIECES mailing of at least 500 pieces of Library sub- Pieces not identical in size and weight may class mail, prepared and presorted to des- be mailed at a bulk or presort rate as part of tination Bulk Mail Centers as specified by the same mailing only when specific meth- the Postal Service. ods approved by the Postal Service for deter- 323.25 Barcoded Discount. The barcoded mining and verifying postage are followed. discount applies to Library subclass mail that is entered at designated facilities, bears 344 ATTACHMENTS AND ENCLOSURES a barcode specified by the Postal Service, is 344.1 Regular, Enhanced Carrier Route, prepared as specified by the Postal Service Nonprofit and Nonprofit Enhanced Carrier in a mailing of at least 50 pieces, and meets Route Subclasses (section 321) all other preparation and machinability requirements of the Postal Service. 344.11 General. First-Class Mail may be attached to or enclosed in Standard books, 330 PHYSICAL LIMITATIONS catalogs, and merchandise entered under section 321. The piece must be marked as speci- 331 SIZE fied by the Postal Service. Except as pro- Except as provided in section 322.161, vided in section 344.12, additional postage Standard Mail may not exceed 108 inches in must be paid for the attachment or enclosure length and girth combined. Additional size as if it had been mailed separately. Other- limitations apply to individual Standard wise, the entire combined piece is subject to Mail subclasses. The maximum size for mail the First-Class rate for which it qualifies. presorted to carrier route in the Enhanced 344.12 Incidental First-Class Attachments and Enclosures. First-Class Mail, as defined Carrier Route and Nonprofit Enhanced Car- in subsections b through d of section 210, rier Route subclasses is 14 inches in length, may be attached to or enclosed with Stand- 11.75 inches in width, and 0.75 inch in thick- ard merchandise entered under section 321, ness. For merchandise samples mailed with including books but excluding merchandise detached address cards, the carrier route samples, with postage paid on the combined maximum dimensions apply to the detached piece at the applicable Standard rate, if the address cards and not to the samples. attachment or enclosure is incidental to the 332 WEIGHT piece to which it is attached or with which it is enclosed. Standard Mail may not weigh more than 70 pounds. Additional weight limitations apply 344.2 Parcel Post, Bound Printed Matter, to individual Standard Mail subclasses. Special, and Library Subclasses (sections 322 and 323) 340 POSTAGE AND PREPARATION 344.21 General. First-Class Mail or Stand- ard Mail from any of the subclasses listed in 341 POSTAGE section 321 (Regular, Enhanced Carrier Postage must be paid as set forth in sec- Route, Nonprofit or Nonprofit Enhanced Car- tion 3000. When the postage computed at a rier Route) may be attached to or enclosed Regular, Enhanced Carrier Route, Nonprofit in Standard Mail mailed under sections 322 or Nonprofit Enhanced Carrier Route Stand- and 323. The piece must be marked as speci- ard rate is higher than the rate prescribed in fied by the Postal Service. Except as pro- any of the Standard subclasses listed in 322 vided in sections 344.22 and 344.23, additional or 323 for which the piece also qualifies (or postage must be paid for the attachment or would qualify, except for weight), the piece enclosure as if it had been mailed separately. is eligible for the applicable lower rate. All Otherwise, the entire combined piece is sub- mail mailed at a bulk or presort rate must ject to the First-Class or section 321 Stand- have postage paid in a manner not requiring ard rate for which it qualifies (unless the cancellation. rate applicable to the host piece is higher),

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or, if a combined piece with a section 321 warded on request of the addressee, returned Standard Mail attachment or enclosure on request of the mailer, or forwarded and weighs 16 ounces or more, the piece is sub- returned on request of the mailer. Pieces ject to the Parcel Post rate for which it which combine Standard Mail from one of qualifies. the subclasses described in 322 and 323 with 344.22 Specifically Authorized Attach- First-Class Mail or Standard Mail from one ments and Enclosures. Standard Mail mailed of the subclasses described in 321 will be for- under sections 322 and 323 may contain en- warded if undeliverable-as-addressed, and re- closures and attachments as specified by the turned if undeliverable, as specified by the Postal Service and as described in sub- Postal Service. When Standard Mail mailed sections a and e of section 323.11, with post- under sections 322 and 323 is forwarded or re- age paid on the combined piece at the Stand- turned from one post office to another, addi- ard rate applicable to the host piece. tional charges will be based on the applica- 344.23 Incidental First-Class Attachments ble single-piece Standard Mail rate under 322 and Enclosures. First-Class Mail that meets or 323. one or more of the definitions in subsections b through d of section 210, may be attached 360 ANCILLARY SERVICES to or enclosed with Standard Mail mailed under section 322 or 323, with postage paid on 361 ALL SUBCLASSES the combined piece at the Standard rate ap- All Standard Mail will receive the fol- plicable to the host piece, if the attachment lowing services upon payment of the appro- or enclosure is incidental to the piece to priate fees: which it is attached or with which it is enclosed. Service Schedule

350 DEPOSIT AND DELIVERY a. Address correction ...... 911 b. Certificates of mailing indicating that a speci- 947 351 DEPOSIT fied number of pieces have been mailed. Standard Mail must be deposited at places and times designated by the Postal Service. Certificates of mailing are not available for Regular, Enhanced Carrier Route, Non- 352 SERVICE profit and Nonprofit Enhanced Carrier Route subclass mail when postage is paid with per- Standard Mail may receive deferred serv- mit imprint. ice. 362 PARCEL POST, BOUND PRINTED MATTER, 353 FORWARDING AND RETURN SPECIAL, AND LIBRARY SUBCLASSES PARCEL 353.1 Regular, Enhanced Carrier Route, POST, BOUND PRINTED MATTER, SPECIAL, Nonprofit and Nonprofit Enhanced Carrier AND LIBRARY SUBCLASS MAIL WILL RECEIVE Route Subclasses (section 321) THE FOLLOWING ADDITIONAL SERVICES UPON Undeliverable-as-addressed Standard Mail PAYMENT OF THE APPROPRIATE FEES: mailed under section 321 will be returned on request of the mailer, or forwarded and re- Service Schedule turned on request of the mailer. Undeliver- a. Certificates of mailing ...... 947 able-as-addressed combined First-Class and b. COD ...... 944 Standard pieces will be returned as specified c. Insurance ...... 943 by the Postal Service. Except as provided in d. Special handling ...... 952 section 935, the applicable First-Class Mail e. Return receipt (merchandise only) ...... 945 rate is charged for each piece receiving re- f. Merchandise return ...... 932 turn only service. Except as provided in sec- g. Delivery Confirmation ...... 948 tion 936, charges for forwarding-and-return service are assessed only on those pieces Insurance, special handling, and COD serv- which cannot be forwarded and are returned. ices may not be used selectively for indi- Except as provided in sections 935 and 936, vidual pieces in a multi-piece Standard Mail the charge for those returned pieces is the mailing unless specific methods approved by appropriate First-Class Mail rate for the the Postal Service for determining and piece plus that rate multiplied by a factor verifying postage are followed. equal to the number of section 321 Standard pieces nationwide that are successfully for- 363 REGULAR AND NONPROFIT warded for every one piece that cannot be Regular and Nonprofit subclass mail will forwarded and must be returned. receive the following additional services upon payment of the appropriate fees. 353.2 Parcel Post, Bound Printed Matter, Special, and Library Subclasses (sections Service Schedule 322 and 323) a. Bulk Parcel Return Service ...... 935 Undeliverable-as-addressed Standard Mail b. Shipper-Paid Forwarding ...... 936 mailed under sections 322 and 323 will be for-

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370 RATES AND FEES fication Schedule if it meets all the requirements in sections 411.2 through 411.5 and the The rates and fees for Standard Mail are requirements for one of the qualification set forth as follows: categories in sections 412 through 415. Eligi- Schedule bility for specific Periodicals rates is prescribed in section 420. a. Regular subclass 321.2 411.2 Periodicals. Periodicals class mail is b. Enhanced Car- mailable matter consisting of newspapers rier Route sub- and other periodical publications. The term class ...... 321.3 c. Nonprofit sub- ‘‘periodical publications’’ includes, but is not class ...... 321.4 limited to: d. Nonprofit En- a. Any catalog or other course listing in- hanced Carrier cluding mail announcements of legal texts Route subclass .. 321.5 which are part of post-bar admission edu- e. Parcel Post sub- cation issued by any institution of higher class: education or by a nonprofit organization en- Inter-BMC ...... 322.1A Intra-BMC ...... 322.1B gaged in continuing legal education. Destination b. Any looseleaf page or report (including BMC ...... 322.1C any index, instruction for filing, table, or Destination sectional identifier which is an integral part SCF ...... 322.1D of such report) which is designed as part of a Destination De- looseleaf reporting service concerning devel- livery Unit .... 322.1E opments in the law or public policy. f. Bound Printed Matter subclass: 411.3 Issuance Single-Piece ... 322.3A Bulk and Car- 411.31 Regular Issuance. Periodicals class rier Route .... 322.3B mail must be regularly issued at stated in- g. Special subclass 323.1 tervals at least four times a year, bear a date h. Library subclass 323.2 i. Fees ...... 1000 of issue, and be numbered consecutively. 411.32 Separate Publication. For purposes of determining Periodicals rate eligibility, 380 AUTHORIZATIONS AND LICENSES an ‘‘issue’’ of a newspaper or other periodical 381 REGULAR, ENHANCED CARRIER ROUTE, shall be deemed to be a separate publication NONPROFIT AND NONPROFIT ENHANCED CAR- when the following conditions exist: RIER ROUTE SUBCLASSES a. The issue is published at a regular frequency more often than once a month either A mailing fee as set forth in Schedule 1000 on (1) the same day as another regular issue must be paid once each year by mailers of of the same publication; or (2) on a day dif- Regular, Enhanced Carrier Route, Nonprofit ferent from regular issues of the same publi- and Nonprofit Enhanced Carrier Route sub- cation, and class mail. b. More than 10 percent of the total number of copies of the issue is distributed on a 382 SPECIAL AND LIBRARY SUBCLASSES regular basis to recipients who do not sub- A presort mailing fee as set forth in Sched- scribe to it or request it, and ule 1000 must be paid once each year at each c. The number of copies of the issue dis- office of mailing by or for any person who tributed to nonsubscribers or nonrequesters mails presorted Special or Library subclass is more than twice the number of copies of mail. Any person who engages a business any other issue distributed to nonsubscribers concern or other individuals to mail or nonrequesters on that same day, or, if no presorted Special or Library subclass mail other issue that day, any other issue distrib- must pay the fee. uted during the same period. ‘‘During the same period’’ shall be defined as the periods 383 PARCEL POST SUBCLASS of time ensuing between the distribution of A mailing fee as set forth in Schedule 1000 each of the issues whose eligibility is being must be paid once each year by mailers of examined. Such separate publications must Destination BMC Destination SCF or Des- independently meet the qualifications for tination Delivery Unit rate category mail in Periodicals eligibility. the Parcel Post subclass. 411.4 Office of Publication. Periodicals class mail must have a known office of publi- PERIODICALS CLASSIFICATION SCHEDULE cation. A known office of publication is a public office where business of the publica- 410 DEFINITION tion is transacted during the usual business hours. The office must be maintained where 411 GENERAL REQUIREMENTS the publication is authorized original entry. 411.1 Definition. A publication may qual- 411.5 Printed Sheets. Periodicals class ify for mailing under the Periodicals Classi- mail must be formed of printed sheets. It

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may not be reproduced by stencil, mimeo- and commingled with subscriber copies are graph, or hectograph processes, or repro- charged the applicable rates for Regular duced in imitation of typewriting. Reproduc- Periodicals. The 10 percent limitation for a tion by any other printing process is permis- publication is based on the total number of sible. Any style of type may be used. all copies of that publication mailed to subscribers during the calendar year. 412 GENERAL PUBLICATIONS 412.35 Advertiser’s Proof Copies. One com- 412.1 Definition. To qualify as a General plete copy of each issue of a General Publica- Publication, Periodicals class mail must tion may be mailed to each advertiser in meet the requirements in section 411 and in that issue as an advertiser’s proof copy at sections 412.2 through 412.4. the rates that apply to subscriber copies, 412.2 Dissemination of Information. A whether the advertiser’s proof copy is mailed General Publication must be originated and to the advertiser directly or, instead, to an published for the purpose of disseminating advertising representative or agent of the information of a public character, or devoted publication. These copies count as subscriber to literature, the sciences, art, or some spe- copies. cial industry. 412.36 Expired Subscriptions. For six months after a subscription has expired, cop- 412.3 Paid Circulation ies of a General Publication may be mailed 412.31 Total Distribution. A General Pub- to a former subscriber at the rates that lication must be designed primarily for paid apply to copies mailed to subscribers, if the circulation. At least 50 percent or more of publisher has attempted during that six the copies of the publication must be distrib- months to obtain payment, or a promise to uted to persons who have paid above a nomi- pay, for renewal. These copies do not count nal rate. as subscriber copies. 412.32 List of Subscribers. A General Pub- 412.4 Advertising Purposes lication must be distributed to a legitimate list of persons who have subscribed by pay- A General Publication may not be designed ing or promising to pay at a rate above primarily for advertising purposes. A publi- nominal for copies to be received during a cation is ‘‘designed primarily for advertising stated time. Copies mailed to persons who purposes’’ if it: are not on a legitimate list of subscribers are a. Has advertising in excess of 75 percent in nonsubscriber copies. more than one-half of its issues during any 412.33 Nominal Rates. As used in section 12-month period; 412.31, nominal rate means: b. Is owned or controlled by individuals or a. A token subscription price that is so low business concerns and conducted as an auxil- that it cannot be considered a material con- iary to and essentially for the advancement sideration; of the main business or calling of those who b. A reduction to the subscriber, under a own or control it; premium offer or any other arrangements, of c. Consists principally of advertising and more than 50 percent of the amount charged editorial write-ups of the advertisers; at the basic annual rate for a subscriber to d. Consists principally of advertising and receive one copy of each issue published dur- has only a token list of subscribers, the cir- ing the subscription period. The value of a culation being mainly free; premium is considered to be its actual cost e. Has only a token list of subscribers and to the publishers, the recognized retail prints advertisements free for advertisers value, or the represented value, whichever is who pay for copies to be sent to a list of per- highest. sons furnished by the advertisers; or f. Is published under a license from individ- 412.34 Nonsubscriber Copies uals or institutions and features other busi- 412.341 Up to Ten Percent. Nonsubscriber nesses of the licensor. copies, including sample and complimentary 413 REQUESTER PUBLICATIONS copies, mailed at any time during the calendar year up to and including 10 percent of 413.1 Definition. A publication which is the total number of copies mailed to sub- circulated free or mainly free may qualify scribers during the calendar year are mail- for Periodicals class as a Requester Publica- able at the rates that apply to subscriber tion if it meets the requirements in sections copies provided that the nonsubscriber cop- 411, and 413.2 through 413.4. ies would have been eligible for those rates if 413.2 Minimum Pages. It must contain at mailed to subscribers. least 24 pages. 412.342 Over Ten Percent. Nonsubscriber 413.3 Advertising Purposes copies, including sample and complimentary copies, mailed at any time during the cal- 413.31 Advertising Percentage. It must de- endar year, in excess of 10 percent of the vote at least 25 percent of its pages to non- total number of copies mailed to subscribers advertising and not more than 75 percent to during the calendar year which are presorted advertisements.

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413.32 Ownership and Control. It must not Periodicals class as a publication of an insti- be owned or controlled by one or more indi- tution or society if it is: viduals or business concerns and conducted a. Published by a regularly incorporated as an auxiliary to and essentially for the ad- institution of learning; vancement of the main business or calling of b. Published by a regularly established those who own or control it. state institution of learning supported in whole or in part by public taxation; 413.4 Circulated to Requesters c. A bulletin issued by a state board of 413.41 List of Requesters. It must have a health or a state industrial development legitimate list of persons who request the agency; publication, and 50 percent or more of the d. A bulletin issued by a state conservation copies of the publication must be distributed or fish and game agency or department; to persons making such requests. Subscrip- e. A bulletin issued by a state board or de- tion copies paid for or promised to be paid partment of public charities and corrections; for, including those at or below a nominal f. Published by a public or nonprofit pri- rate may be included in the determination of vate elementary or secondary institution of whether the 50 percent request requirement learning or its administrative or governing is met. Persons will not be deemed to have body; requested the publication if their request is g. Program announcements or guides pub- induced by a premium offer or by receipt of lished by an educational radio or television material consideration, provided that mere agency of a state or political subdivision receipt of the publication is not material thereof, or by a nonprofit educational radio consideration. or television station; 413.42 Nonrequester Copies h. Published by or under the auspices of a benevolent or fraternal society or order or- 413.421 Up to Ten Percent. Nonrequester ganized under the lodge system and having a copies, including sample and complimentary bona fide membership of not less than 1,000 copies, mailed at any time during the cal- persons; endar year up to and including 10 percent of i. Published by or under the auspices of a the total number of copies mailed to request- trade(s) union; ers during the calendar year are mailable at j. Published by a strictly professional, lit- the rates that apply to requester copies pro- erary, historical, or scientific society; or, vided that the nonrequester copies would k. Published by a church or church organi- have been eligible for those rates if mailed to zation. requesters. 414.2 General Advertising. A publication 413.422 Over Ten Percent. Nonrequester published by an institution or society identi- copies, including sample and complimentary fied in sections 414.1 h through k, may con- copies, mailed at any time during the cal- tain advertising of other persons, institu- endar year, in excess of 10 percent of the tions, or concerns, if the following additional total number of copies mailed to requesters conditions are met: during the calendar year which are presorted a. The publication is originated and pub- and commingled with requester copies are lished to further the objectives and purposes charged the applicable rates for Regular of the society; Periodicals. The 10 percent limitation for a publication is based on the total number of b. Circulation is limited to: all copies of that publication mailed to re- i. Copies mailed to members who pay ei- questers during the calendar year. ther as a part of their dues or assessment or 413.43 Advertiser’s Proof Copies. One com- otherwise, not less than 50 percent of the plete copy of each issue of a Requester Publi- regular subscription price; cation may be mailed to each advertiser in ii. Other actual subscribers; and that issue as an advertiser’s proof copy at iii. Exchange copies. the rates that apply to requester copies, c. The circulation of nonsubscriber copies, whether the advertiser’s proof copy is mailed including sample and complimentary copies, to the advertiser directly or, instead, to an does not exceed 10 percent of the total num- advertising representative or agent of the ber of copies referred to in 414.2b. publication. These copies count as requester copies. 415 PUBLICATIONS OF STATE DEPARTMENTS OF AGRICULTURE 414 PUBLICATIONS OF INSTITUTIONS AND SOCI- A publication which is issued by a state de- ETIES partment of agriculture and which meets the 414.1 Publisher’s Own Advertising. Except requirements of sections 411 qualifies for as provided in section 414.2, a publication Periodicals class as a publication of a state which meets the requirements of sections 411 department of agriculture if it contains no and 412.4, and which contains no advertising advertising and is published for the purpose other than that of the publisher, qualifies for of furthering the objects of the department.

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416 FOREIGN PUBLICATIONS 421.42 Barcoded Flats Discounts. Barcoded flats discounts apply to flat size Regular sub- Foreign newspapers and other periodicals class mail mailed under sections 421.31, of the same general character as domestic 421.32, 421.33 which bear a barcode rep- publications entered as Periodicals class resenting not more than 11 digits (not in- mail may be accepted on application of the cluding ‘‘correction’’ digits) as specified by publishers thereof or their agents, for trans- the Postal Service, and meet the flats ma- mission through the mail at the same rates chinability, addressing, and barcoding speci- as if published in the United States. This fications and other preparation requirements section does not authorize the transmission specified by the Postal Service. through the mail of a publication which vio- 421.43 High Density Discount. The high lates a copyright granted by the United density discount applies to Regular subclass States. mail mailed under section 421.34, presented 420 DESCRIPTION OF SUBCLASSES in walk sequence order, and meeting the high density and preparation requirements 421 REGULAR SUBCLASS specified by the Postal Service. 421.44 Saturation Discount. The satura- 421.1 Definition. The Regular subclass tion discount applies to Regular subclass consists of Periodicals class mail that is not mail mailed under section 421.34, presented mailed under section 423 and that: in walk-sequence order, and meeting the a. Is presorted, marked, and presented as saturation and preparation requirements specified by the Postal Service; and specified by the Postal Service. b. Meets machinability, addressing, and 421.45 Destination Entry Discounts. Des- other preparation requirements specified by tination entry discounts apply to Regular the Postal Service. subclass mail which is destined for delivery 421.2 Regular Pound Rates within the service area of the destination sectional center facility (SCF) or the des- An unzoned pound rate applies to the non- tination delivery unit (DDU) in which it is advertising portion of Regular subclass mail. entered, as defined by the Postal Service. A zoned pound rate applies to the advertising The DDU discount only applies to Carrier portion and may be reduced by applicable Route rate category mail. destination entry discounts. The pound rate 421.46 Nonadvertising Discount. The non- postage is the sum of the nonadvertising por- advertising discount applies to all Regular tion charge and the advertising portion subclass mail and is determined by multi- charge. plying the proportion of nonadvertising content by the discount factor set forth in Rate 421.3 Regular Piece Rates Schedule 421 and subtracting that amount 421.31 Basic Rate Category. The basic rate from the applicable piece rate. category applies to all Regular subclass mail not mailed under section 421.32, 421.33, or 422 [RESERVED] 421.34. 423 PREFERRED RATE PERIODICALS 421.32 Three-Digit Rate Category. The three-digit rate category applies to Regular 423.1 Definition. Periodicals class mail, subclass mail presorted to single or multiple other than publications qualifying as Re- three-digit ZIP Code destinations as speci- quester Publications, may qualify for Pre- fied by the Postal Service. ferred Rate Periodicals rates if it meets the 421.33 Five-Digit Rate Category. The five- applicable requirements for those rates in digit rate category applies to Regular subsections 423.2 through 423.5. class mail presorted to single or multiple five-digit ZIP Code destinations as specified 423.2 Within County Subclass by the Postal Service. 423.21 Definition. Within County mail 421.34 Carrier Route Rate Category. The consists of Preferred Rate Periodicals class carrier route rate category applies to Reg- mail mailed in, and addressed for delivery ular subclass mail presorted to carrier routes within the county where published and origi- as specified by the Postal Service. nally entered, from either the office of original entry or additional entry. In addition, a 421.4 Regular Subclass Discounts Within County publication must meet one of 421.41 Barcoded Letter Discounts. the following conditions: Barcoded letter discounts apply to letter size a. The total paid circulation of the issue is Regular subclass mail mailed under sections less than 10,000 copies; or 421.31, 421.32, and 421.33 which bears a barcode b. The number of paid copies of the issue representing not more than 11 digits (not in- distributed within the county of publication cluding ‘‘correction’’ digits) as specified by is at least one more than one-half the total the Postal Service, and which meets the ma- paid circulation of such issue. chinability, addressing, and barcoding speci- 423.22 Entry in an Incorporated City. For fications and other preparation requirements the purpose of determining eligibility for specified by the Postal Service. Within County mail, when a publication has

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original entry at an independent incor- tising portion charge. For Preferred Rate porated city which is situated entirely with- Periodicals entered under section 423.2, one in a county or which is contiguous to one or pound rate applies to the pieces presorted to more counties in the same state, such incor- carrier route to be delivered within the de- porated city shall be considered to be within livery area of the originating post office, and the county with which it is principally con- another pound rate applies to all other tiguous. Where more than one county is in- pieces. volved, the publisher will select the principal county. 423.7 Preferred Rate Piece Rates 423.3 Nonprofit Subclass 423.71 Basic Rate Category. The basic rate Nonprofit mail is Preferred Rate Periodi- category applies to all Preferred Rate Peri- cals class mail entered by authorized non- odicals not mailed under section 423.72, profit organizations or associations of the 423.73, or 423.74. following types: 423.72 Three-Digit Rate Category. The a. Religious, as defined in section 1009, three-digit rate category applies to Preferred b. Educational, as defined in section 1009, Rate Periodicals entered under sections c. Scientific, as defined in section 1009, 423.2, 423.3, 423.4, or 423.5 that are presorted d. Philanthropic, as defined in section 1009, to single or multiple three-digit ZIP Code e. Agricultural, as defined in section 1009, destinations as specified by the Postal Serv- f. Labor, as defined in section 1009, ice. g. Veterans’, as defined in section 1009, 423.73 Five-Digit Rate Category. The five- h. Fraternal, as defined in section 1009, and digit category applies to Preferred Rate i. Associations of rural electric coopera- Periodicals entered under sections 423.2, tives, j. One publication, which contains no ad- 423.3, 423.4, or 423.5 that are presorted to sin- vertising (except advertising of the pub- gle or multiple five-digit ZIP Code destina- lisher) published by the official highway or tions as specified by the Postal Service. development agency of a state, 423.74 Carrier Route Rate Category. The k. Program announcements or guides pub- carrier route rate category applies to Pre- lished by an educational radio or television ferred Rate Periodicals presorted to carrier agency of a state or political subdivision routes as specified by the Postal Service. thereof or by a nonprofit educational radio or television station. 423.8 Preferred Rate Discounts l. One conservation publication published 423.81 Barcoded Letter Discounts. by an agency of a state which is responsible Barcoded letter discounts apply to letter size for management and conservation of the fish Preferred Rate Periodicals mailed under sec- or wildlife resources of such state. tions 423.71, 423.72, and 423.73 which bear a 423.4 Classroom Subclass barcode representing not more than 11 digits (not including ‘‘correction’’ digits) as speci- Classroom mail is Preferred Rate Periodi- fied by the Postal Service, and which meet cals class mail which consists of religious, the machinability, addressing, and barcoding educational, or scientific publications de- specifications and other preparation require- signed specifically for use in school class- ments specified by the Postal Service. rooms or religious instruction classes. 423.82 Barcoded Flats Discounts. Barcoded 423.5 Science of Agriculture flats discounts apply to flat size Preferred Rate Periodicals mailed under sections Science of Agriculture mail consists of 423.71, 423.72, and 423.73 which bear a barcode Preferred Rate Periodicals class mail de- representing not more than 11 digits (not in- voted to the science of agriculture if the total number of copies of the publication fur- cluding ‘‘correction’’ digits) as specified by nished during any 12-month period to sub- the Postal Service, and meet the flats ma- scribers residing in rural areas amounts to chinability, addressing, and barcoding speci- at least 70 percent of the total number of fications and other preparation requirements copies distributed by any means for any pur- specified by the Postal Service. pose. 423.83 High Density Discount. The high density discount applies to Preferred Rate 423.6 Preferred Rate Pound Rates Periodicals mailed under section 423.74, pre- For Preferred Rate Periodicals entered sented in walk-sequence order, and meeting under sections 423.3, 423.4 and 423.5, and un- the high density and preparation require- zoned pound rate applies to the nonadver- ments specified by the Postal Service, except tising portion. A zoned pound rate applies to that mailers of Within County mail may the advertising portion and may be reduced qualify for such discount also by presenting by applicable destination entry discounts. otherwise eligible mailings containing pieces The pound rate postage is the sum of the addressed to a minimum of 25 percent of the nonadvertising portion charge and the adver- addresses per carrier route.

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423.84 Saturation Discount. The satura- rate, if the attachment or enclosure is inci- tion discount applies to Preferred Rate Peri- dental to the piece to which it is attached or odicals mailed under section 423.74, pre- with which it is enclosed. sented in walk–sequence order, and meeting the saturation and preparation requirements 444 IDENTIFICATION specified by the Postal Service. Periodicals class mail must be identified as 423.85 Destination Entry Discounts. Des- required by the Postal Service. Nonsub- tination entry discounts apply to Preferred scriber and nonrequester copies, including Rate Periodicals which are destined for de- sample and complimentary copies, must be livery within the service area of the destina- identified as required by the Postal Service. tion sectional center facility (SCF) or the destination delivery unit (DDU) in which 445 FILING OF INFORMATION they are entered, as defined by the Postal Information relating to Periodicals class Service. The DDU discount only applies to mail must be filed with the Postal Service Carrier Route rate category mail; the SCF under 39 U.S.C. 3685. discount is not available for mail entered under section 423.2. 446 ENCLOSURES AND SUPPLEMENTS 423.86 Nonadvertising Discount. The nonadvertising discount applies to Preferred Periodicals class mail may contain enclo- Rate Periodicals entered under sections sures and supplements as specified by the 423.3, 423.4, 423.5 and is determined by multi- Postal Service. An enclosure or supplement plying the proportion of nonadvertising con- may not contain writing, printing or sign tent by the discount factor set forth in Rate thereof or therein, in addition to the original Schedules 421. 423.3 or 423.4 and subtracting print, except as authorized by the Postal that amount from the applicable piece rate. Service, or as authorized under section 443.2.

430 PHYSICAL LIMITATIONS 450 DEPOSIT AND DELIVERY There are no maximum size or weight lim- 451 DEPOSIT its for Periodicals class mail. Periodicals class mail must be deposited at 440 POSTAGE AND PREPARATION places and times designated by the Postal Service. 441 POSTAGE. POSTAGE MUST BE PAID ON PERIODICALS CLASS MAIL AS SET FORTH IN 452 SERVICE SECTION 3000. Periodicals class mail is given expeditious handling insofar as is practicable. 442 PRESORTATION. PERIODICALS CLASS MAIL MUST BE PRESORTED AS SPECIFIED BY THE 453 FORWARDING AND RETURN POSTAL SERVICE. Undeliverable-as-addressed Periodicals 443 ATTACHMENTS AND ENCLOSURES class mail will be forwarded or returned to the mailer, as specified by the Postal Serv- 443.1 General. First-Class Mail or Stand- ice. Undeliverable-as-addressed combined ard Mail from any of the subclasses listed in First-Class and Periodicals class mail pieces section 321 (Regular, Enhanced Carrier Route will be forwarded or returned, as specified by Nonprofit or Nonprofit Enhanced Carrier the Postal Service. Additional charges when Route) may be attached to or enclosed with Periodicals class mail is returned will be Periodicals class mail. The piece must be based on the applicable First–Class Mail marked as specified by the Postal Service. rate. Except as provided in section 443.2, additional postage must be paid for the attach- 470 RATES AND FEES ment or enclosure as if it had been mailed separately. Otherwise, the entire combined The rates and fees for Periodicals class piece is subject to the appropriate First- mail are set forth as follows: Class or section 321 Standard Mail rate for Schedule which it qualifies (unless the rate applicable to the host piece is higher), or, if a combined a. Regular ...... 421 piece with a section 321 Standard Mail at- b. Within County ...... 423.2 tachment or enclosure weighs 16 ounces or c. Nonprofit ...... 423.3 more, the piece is subject to the Parcel Post d. Classroom ...... 423.4 rate for which it qualifies. e. Science of Agriculture ...... 421 f. Fees ...... 1000 443.2 Incidental First-Class Mail Attach- ments and Enclosures. First-Class Mail that meets one or more of the definitions in sub- 480 AUTHORIZATIONS AND LICENSES sections b through d of section 210 may be 481 ENTRY AUTHORIZATIONS attached to or enclosed with Periodicals class mail, with postage paid on the com- Prior to mailing at Periodicals rates, a bined piece at the applicable Periodicals publication must be authorized for entry as

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Periodicals class mail by the Postal Service. 911.31 Mail, other than Periodicals class Each authorized publication will be granted mail, sent under this section must bear a re- one original entry authorization at the post quest for address correction service. office where the office of publication is 911.4 Fees. maintained. An authorization for the estab- 911.41 There is no charge for address cor- lishment of an account to enter a publica- rection service when the correction is pro- tion at an additional entry office may be vided incidental to the return of the granted by the Postal Service upon applica- mailpiece to the sender. tion by the publisher. An application for re- 911.42 A fee, as set forth in Fee Schedule entry must be made whenever the publisher 911, is charged for all other forms of address proposes to change the publication’s title, correction service. frequency of issue or office of original entry. 912 MAILING LIST SERVICES 482 PREFERRED RATE AUTHORIZATION 912.1 Definition. 912.11 Mailing list services include: Prior to mailing at Nonprofit, Classroom, a. Correction of mailing lists; and Science of Agriculture rates, a publica- b. Change-of-address information for election must obtain an additional Postal Serv- tion boards and registration commissions; ice entry authorization to mail at those c. ZIP coding of mailing lists; and rates. d. Arrangement of address cards in the sequence of delivery. 483 MAILING BY PUBLISHERS AND NEWS 912.12 Correction of mailing list service AGENTS provides current information concerning Periodicals class mail may be mailed only name and address mailing lists or correct in- by publishers or registered news agents. A formation concerning occupant mailing lists. news agent is a person or concern engaged in 912.13 ZIP coding of mailing lists service selling two or more Periodicals publications is a service identifying ZIP Code addresses in published by more than one publisher. News areas served by multi-ZIP coded postal fa- agents must register at all post offices at cilities. which they mail Periodicals class mail. 912.2 Description of Service. 912.21 Correction of mailing list service is 484 FEES available only to the following owners of name and address or occupant mailing lists: Fees for original entry, additional entry, a. Members of Congress; re-entry, and registration of a news agent b. Federal agencies; are set forth in Schedule 1000. c. State government departments; d. Municipalities; SPECIAL SERVICES e. Religious organizations; f. Fraternal organizations; 910 ADDRESSING g. Recognized charitable organizations; 911 ADDRESS CORRECTION SERVICE h. Concerns or persons who solicit business by mail. 911.1 Definition. 912.22 The following corrections will be 911.11 Address correction service is a serv- made to name and address lists: ice which provides the mailer with a method a. Names to which mail cannot be deliv- of obtaining the correct address, if available ered or forwarded will be deleted; to the Postal Service, of the addressee or the b. Incorrect house, rural, or post office box reason for nondelivery. numbers will be corrected; 911.2 Description of Service. c. When permanent forwarding orders are 911.21 Address correction service is avail- on file for customers who have moved, new able to mailers of postage prepaid mail of all addresses including ZIP Codes will be fur- classes. Periodicals class mail will receive nished; address correction service. d. New names will not be added to the list. 912.23 The following corrections will be 911.22 Address correction service is not made to occupant lists: available for items addressed for delivery by a. Numbers representing incorrect or non- military personnel at any military installa- existent street addresses will be deleted; tion. b. Business or rural route addresses will be 911.23 Address correction provides the fol- distinguished if known; lowing service to the mailer: c. Corrected cards or sheets will be grouped a. If the correct address is known to the by route; Postal Service, the mailer is notified of both d. Street address numbers will not be the old and the correct address. added or changed. b. If the item mailed cannot be delivered, 912.24 Corrected lists will be returned to the mailer will be notified of the reason for customers at no additional charge. nondelivery. 912.25 Residential change-of-address infor- 911.3 Requirements of the Mailer. mation is available only to election boards

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or registration commissions for obtaining, if holder. If the post office box is located at the known to the Postal Service, the current ad- post office indicated on the piece, it will be dress of an addressee. transferred without additional charge, under 912.26 ZIP coding or mailing list service existing regulations. provides that addresses will be sorted to the 921.223 Post office box service cannot be finest possible ZIP Code sortation. used when the sole purpose is, by subse- 912.27 Gummed labels, wrappers, enve- quently filing change-of-address orders, to lopes, Stamped Cards, or postcards indic- have mail forwarded or transferred to an- ative of one-time use will not be accepted as other address by the Postal Service free of mailing lists. charge. 912.28 Sequencing of address cards service 921.23 Fees. provides for the removal of incorrect ad- 921.231 Fees for post office box service are dresses, notation of missing addresses and set forth in Fee Schedule 921. addition of missing addresses. 921.232 In postal facilities primarily serv- 912.3 Requirements of Customer. ing academic institutions or the students of 912.31 A customer desiring correction of a such institutions, fees for post office boxes mailing list or arrangement of address cards are: in sequence of carrier delivery must submit the list or cards as specified by the Postal Period of box use Fee Service. 912.4 Fees. 95 days or less ...... 1⁄2 semiannual fee. 912.41 The fees for mailing list services 96 to 140 days ...... 3⁄4 semiannual fee. are set forth in Fee Schedule 912. 141 to 190 days ...... Full semiannual fee. 191 to 230 days ...... 11⁄4 semiannual fee. 1 920 Delivery Alternatives 231 to 270 days ...... 1 ⁄2 semiannual fee. 271 days to full year ...... Full annual fee. 921 POST OFFICE BOX AND CALLER SERVICE 921.233 No refunds will be made for post 921.1 Caller Service. office box fees paid under section. 921.232. 921.11 Definition. For purposes of this section, the full annual 921.111 Caller service is a service which fee is twice the amount of the semi-annual permits a customer to obtain mail addressed fee. to the customer’s box number through a call window or loading dock. 930 Payment Alternatives 921.12 Description of Service. 921.121 Caller service uses post office box 931 BUSINESS REPLY MAIL numbers as the address medium but does not 931.1 Definitions. actually use a post office box. 921.122 Caller service is not available at 931.11 Business reply mail is a service certain postal facilities. whereby business reply cards, envelopes, car- 921.123 Caller service is provided to cus- tons and labels may be distributed by or for tomers on the basis of mail volume received a business reply distributor for use by mail- and number of post office boxes used at any ers for sending First-Class Mail without pre- one facility. payment of postage to an address chosen by 921.124 A customer may reserve a caller the distributor. A distributor is the holder of number. a business reply license. 921.125 Caller service cannot be used when 931.12 A business reply mail piece is non- the sole purpose is, by subsequently filing letter-size for purposes of this section if it change-of-address orders, to have mail for- meets addressing and other preparation re- warded or transferred to another address by quirements, but does not meet the machin- the Postal Service free of charge. ability requirements specified by the Postal 921.13 Fees. Service for mechanized or automated letter 921.131 Fees for caller service are set forth sortation. This provision expires June 7, 1999. in Fee Schedule 921. 931.2 Description of Service. 921.2 Post Office Box Service. 931.21 The distributor guarantees pay- 921.21 Definition. ment on delivery of postage and fees for all 921.211 Post office box service is a service returned business reply mail. Any dis- which provides the customer with a private, tributor of business reply cards, envelopes, locked receptacle for the receipt of mail dur- cartons and labels under any one license for ing the hours when the lobby of a postal fa- return to several addresses guarantees to cility is open. pay postage and fees on any returns refused 921.22 Description of Service. by any such addressee. 921.221 The Postal Service may limit the 931.3 Requirements of the Mailer. number of post office boxes occupied by any 931.31 Business reply cards, envelopes, one customer. cartons and labels must be preaddressed and 921.222 A post office boxholder may ask bear business reply markings. the Postal Service to deliver to the post of- 931.32 Handwriting, typewriting or fice box all mail properly addressed to the handstamping are not acceptable methods of

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preaddressing or marking business reply tive. This fee applies to the (no more than) 10 cards, envelopes, cartons, or labels. advance deposit account holders which are 931.4 Fees. selected by the Postal Service to participate 931.41 The fees for business reply mail are in the weight averaging nonletter-size busi- set forth in Fee Schedule 931. ness reply mail experiment. This provision 931.42 To qualify as an active business expires June 7, 1999. reply mail advance deposit trust account, 931.7 Authorizations and Licenses. the account must be used solely for business 931.71 In order to distribute business reply reply mail and contain sufficient postage cards, envelopes, cartons or labels, the dis- and fees due for returned business reply tributor must obtain a license or licenses mail. from the Postal Service and pay the appro- 931.43 An accounting fee as set forth in priate fee as set forth in Fee Schedule 931. Fee Schedule 931 must be paid each year for 931.72 Except as provided in section 931.73, each advance deposit business reply account the license to distribute business reply cards, at each facility where the mail is to be re- envelopes, cartons, or labels must be ob- turned. tained at each office from which the mail is 931.5 Experimental Reverse Manifest offered for delivery. Fees. 931.73 If the business reply mail is to be 931.51 A set-up/qualification fee as set distributed from a central office to be re- forth in Fee Schedule 931 must be paid by turned to branches or dealers in other cities, each business reply mail advance deposit one license obtained from the post office trust account holder at each destination where the central office is located may be postal facility at which it applies to receive used to cover all business reply mail. nonletter-size business reply mail for which 931.74 The license to mail business reply the postage and fees will be accounted for mail may be canceled for failure to pay busi- through a reverse manifest method approved ness reply postage and fees when due, and for by the Postal Service for determining and distributing business reply cards or enve- verifying postage. A distributor must pay lopes that do not conform to prescribed this fee for each business reply mail advance form, style or size. deposit trust account for which participation 931.75 Authorization to pay experimental in the nonletter-size business reply mail ex- nonletter-size business reply mail fees as set periment is requested. This provision expires forth in Fee Schedule 931 may be canceled June 7, 1999. for failure of a business reply mail advance 931.52 A nonletter-size reverse manifest deposit trust account holder to meet the monthly fee as set forth in Fee Schedule 931 standards specified by the Postal Service for must be paid each month during which the the applicable reverse manifest or weight distributor’s reverse manifest account is ac- averaging accounting method. This provision tive. This fee applies to the (no more than) 10 expires June 7, 1999. advance deposit account holders which are selected by the Postal Service to participate 932 Merchandise Return Service in the reverse manifest nonletter-size busi- 932.1 Definition. ness reply mail experiment and which utilize 932.11 Merchandise return service provides reverse manifest accounting methods ap- a method whereby a shipper may authorize proved by the Postal Service for determining its customers to return a parcel with the and verifying postage and fees. This provi- postage paid by the shipper. A shipper is the sion expires June 7, 1999. holder of a merchandise return permit. 931.6 Experimental Weight Averaging 932.2 Description of Service. Fees. 932.21 Merchandise return service is avail- 931.61 A set-up/qualification fee as set able to all shippers who obtain the necessary forth in Fee Schedule 931 must be paid by permit and who guarantee payment of post- each business reply mail advance deposit age and fees for all returned parcels. trust account holder at each destination 932.22 Merchandise return service is avail- postal facility at which it applies to receive able for the return of any parcel under the nonletter-size business reply mail for which following classification schedules: the postage and fees will be accounted for a. First-Class Mail; through a weight averaging method approved b. Standard Mail. by the Postal Service for determining and 932.3 Requirements of the Mailer. verifying postage. A distributor must pay 932.31 Merchandise return labels must be this fee for each business reply mail advance prepared at the shipper’s expense to speci- deposit trust account for which participation fications set forth by the Postal Service. in the nonletter-size business reply mail ex- 932.32 The shipper must furnish its cus- periment is requested. This provision expires tomer with an appropriate merchandise re- June 7, 1999. turn label. 931.62 A nonletter-size weight averaging 932.4 Other Services. monthly fee as set forth in Fee Schedule 931 932.41 The following services may be pur- must be paid each month during which the chased in conjunction with Merchandise Re- distributor’s weight averaging account is ac- turn Service:

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Fee parcels, as defined by the Postal Service, ini- Service schedule tially mailed under the following Standard Mail subclasses: Regular and Nonprofit. a. Certificate of mailing ...... 947 935.3 Requirements of the Mailer. b. Insurance ...... 943 c. Registered mail ...... 942 935.31 Mailers must receive authorization d. Special handling ...... 952 from the Postal Service to use Bulk Parcel Return Service. 932.42 Only the shipper may purchase in- 935.32 To claim eligibility for Bulk Parcel surance service for the merchandise return Return Service at each facility through parcel by indicating the amount of insurance which the mailer requests Bulk Parcel Re- on the merchandise return label before pro- turn Service, the mailer must demonstrate viding it to the customer. The customer who receipt of 10,000 returned machinable parcels returns a parcel to the shipper under mer- at a given delivery point in the previous chandise return service may not purchase in- postal fiscal year or must demonstrate a surance. high likelihood of receiving 10,000 returned 932.5 Fees. parcels in the postal fiscal year for which the 932.51 The fee for the merchandise return service is requested. service is set forth in Fee Schedule 932. This 935.33 Payment for Bulk Parcel Return fee is paid by the shipper. Service is made through advance deposit ac- 932.6 Authorizations and Licenses. count, or as otherwise specified by the Post- 932.61 A permit fee as set forth in Sched- al Service. ule 1000 must be paid once each calendar 935.34 Mail for which Bulk Parcel Return year by shippers utilizing merchandise re- Service is requested must bear endorsements specified by the Postal Service. turn service. 935.35 Bulk Parcel Return Service mailers 932.62 The merchandise return permit must meet the documentation and audit re- may be canceled for failure to maintain suf- quirements of the Postal Service. ficient funds in a trust account to cover 935.4 Other Services. postage and fees on returned parcels or for 935.41 The following services may be pur- distributing merchandise return labels that chased in conjunction with Bulk Parcel Re- do not conform to Postal Service specifica- turn Service: tions. Fee 933 On-Site Meter Setting Service schedule

933.1 Definition. a. Address Correction Service ...... 911 933.11 On-site meter setting or examina- b. Certificate of Mailing ...... 947 tion service is a service whereby the Postal c. Shipper-Paid Forwarding ...... 936 Service will service a postage meter at the mailer’s or meter manufacturer’s premises. 935.5 Fee. 933.2 Description of Service. 935.51 The fee for Bulk Parcel Return 933.21 On-site meter setting or examina- Service is set forth in Fee Schedule 935. tion service is available on a scheduled basis, 935.6 Authorizations and Licenses. and meter setting may be performed on an 935.61 A permit fee as set forth in Sched- emergency basis for those customers en- ule 1000 must be paid once each calendar rolled in the scheduled on-site meter setting year by mailers utilizing Bulk Parcel Return or examination program. Service. 933.3 Fees. 935.62 The Bulk Parcel Return Service 933.31 The fees for on-site meter setting or permit may be canceled for failure to main- examination service are set forth in Fee tain sufficient funds in an advance deposit Schedule 933. account to cover postage and fees on returned parcels or for failure to meet the 934 [Reserved] specifications of the Postal Service.

935 Bulk Parcel Return Service 936 Shipper-Paid Forwarding 935.1 Definition. 936.1 Definition. 935.11 Bulk Parcel Return Service pro- 936.11 Shipper-Paid Forwarding provides a vides a method whereby high-volume parcel method whereby mailers may have undeliv- mailers may have undeliverable-as-addressed erable-as-addressed machinable parcels for- machinable parcels returned to designated warded at applicable First-Class Mail rates postal facilities for pickup by the mailer at for up to one year from the date that the ad- a predetermined frequency specified by the dressee filed a change-of-address order. If the Postal Service or delivered by the Postal parcel, for which Shipper-Paid Forwarding is Service in bulk in a manner and frequency elected, is returned, the mailer will pay the specified by the Postal Service. applicable First-Class Mail rate, or the Bulk 935.2 Description of Service. Parcel Return Service fee, if that service was 935.21 Bulk Parcel Return Service is elected. available only for the return of machinable 936.2 Description of Service.

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936.21 Shipper-Paid Forwarding is avail- 941.4 Other Services. able only for the forwarding of machinable 941.41 The following services may be ob- parcels, as defined by the Postal Service, ini- tained in conjunction with mail sent under tially mailed under the following Standard this section upon payment of the applicable Mail subclasses: Regular and Nonprofit. fees: 936.3 Requirements of the Mailer. 936.31 Shipper-Paid Forwarding is avail- Service Fee able only in conjunction with automated Ad- schedule dress Correction Service in section 911. a. Restricted Delivery ...... 946 936.32 Mail for which Shipper-Paid For- b. Return Receipt ...... 945 warding is purchased must meet the preparation requirements of the Postal Service. 941.5 Fees. 936.33 Payment for Shipper-Paid For- 941.51 The fees for certified mail service warding is made through advance deposit ac- are set forth in Fee Schedule 941. count, or as otherwise specified by the Post- al Service. 942 Registered Mail 936.34 Mail for which Shipper-Paid For- 942.1 Definition. warding is requested must bear endorse- 942.11 Registered mail is a service that ments specified by the Postal Service. provides added protection to mail sent under 936.4 Other Services. this section and indemnity in case of loss or 936.41 The following services may be pur- damage. chased in conjunction with Shipper-Paid 942.2 Description of Service. Forwarding: 942.21 Registered mail service is available to mailers of prepaid mail sent as First-Class Fee Service schedule Mail except that registered mail must meet the minimum requirements for length and a. Certificate of Mailing ...... 947 width regardless of thickness. b. Bulk Parcel Return Service ...... 935 942.22 Registered mail service provides insurance up to a maximum of $25,000, depend- 936.5 Applicable Rates. ing upon the actual value at the time of 936.51 Except as provided in section 935, mailing, except that insurance is not avail- single-piece rates under the Letters and able for articles of no value. Sealed Parcels subclass or the Priority Mail 942.23 There is no limit on the value of ar- subclass of First-Class Mail, as set forth in ticles sent under this section. Rate Schedules 221 and 223, apply to pieces 942.24 Registered mail service is not avail- forwarded or returned under this section. able for: a. All delivery points because of the high 940 Accountability & Receipts security required for registered mail; in ad- 941 Certified Mail dition, not all delivery points will be available for registry and liability is limited in 941.1 Definition. some geographic areas; 941.11 Certified mail service is a service b. Mail of any class sent in combination that provides a mailing receipt to the sender with First-Class Mail; and a record of delivery at the office of deliv- c. Two or more articles tied or fastened to- ery. gether, unless the envelopes are enclosed in 941.2 Description of Service. the same envelope or container. 941.21 Certified mail service is provided 942.25 The following services are provided for matter mailed as First-Class Mail. as part of registered mail service at no addi- 941.22 If requested by the mailer, the time tional cost to the mailer: of acceptance by the Postal Service will be a. A receipt; indicated on the receipt. b. A record of delivery, retained by the 941.23 A record of delivery is retained at Postal Service for a specified period of time; the office of delivery for a specified period of c. A notice of attempted delivery will be time. left at the mailing address if the initial de- 941.24 If the initial attempt to deliver the livery attempt is unsuccessful; mail is not successful, a notice of attempted d. When registered mail is undeliverable- delivery is left at the mailing address. as-addressed and cannot be forwarded, a no- 941.25 A receipt of mailing may be ob- tice of nondelivery is provided. tained only if the article is mailed at a post 942.26 A claim for complete loss of insured office, branch or station, or given to a rural articles may be filed by the mailer only. A carrier. claim for damage or for partial loss of in- 941.26 Additional copies of the original sured articles may be filed by either the mailing receipt may be obtained by the mail- mailer or addressee. er. 942.27 Indemnity claims for registered 941.3 Deposit of Mail. mail must be filed within a period of time, 941.31 Certified mail must be deposited in specified by the Postal Service, from the a manner specified by the Postal Service. date the article was mailed.

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942.3 Deposit of Mail. 943.131 The fees for Express Mail Insur- 942.31 Registered mail must be deposited ance service are set forth in Fee Schedule in a manner specified by the Postal Service. 943. 942.4 Service. 943.2 General Insurance. 942.41 Registered mail is provided max- 943.21 Retail Insurance. imum security. 943.211 Retail Insurance is a service that 942.5 Forwarding and Return. provides the mailer with indemnity for loss 942.51 Registered mail is forwarded and of, rifling of, or damage to mailed items. returned without additional registry charge. 943.212 The maximum liability of the Postal Service for Retail Insurance is $5000. 942.6 Other Services. 943.213 Retail Insurance is available for 942.61 The following services may be ob- mail sent under the following classification tained in conjunction with mail sent under schedules: this section upon payment of applicable fees: a. First-Class Mail, if containing matter that may be mailed as Standard Mail; Fee Service schedule b. Parcel Post, Bound Printed Matter, Spe- cial, and Library subclasses of Standard a. Collect on delivery ...... 944 Mail. b. Restricted delivery ...... 946 943.214 Retail Insurance is not available c. Return receipt ...... 945 for matter offered for sale, addressed to pro- d. Merchandise return (shippers only) ...... 932 spective purchasers who have not ordered or authorized their sending. If such matter is 942.7 Fees received in the mail, payment will not be 942.71 The fees for registered mail are set made for loss, rifling, or damage. forth in Fee Schedule 942. 943.215 For Retail Insurance, the mailer is issued a receipt for each item mailed. For 943 Insurance items insured for more than $50, a receipt of 943.1 Express Mail Insurance. delivery is obtained by the Postal Service. 943.11 Definition. 943.216 For items insured for more than 943.111 Express Mail Insurance is a service $50, a notice of attempted delivery is left at that provides the mailer with indemnity for the mailing address when the first attempt loss of, rifling of, or damage to items sent by at delivery is unsuccessful. Express Mail. 943.217 Retail insurance provides indem- 943.12 Description of Service. nity for the actual value of the article at the 943.121 Express Mail Insurance is avail- time of mailing. able only for Express Mail. 943.22 Bulk Insurance. 943.221 Bulk Insurance service is available 943.122 Insurance coverage is provided, for for mail entered in bulk at designated facili- no additional charge, up to $500 per piece for ties and in a manner specified by the Postal document reconstruction, up to $5,000 per oc- Service, including the use of electronic currence regardless of the number of claim- manifesting, and sent under the following ants. Insurance coverage is also provided, for classification schedules: no additional charge, up to $500 per piece for a. First-Class Mail, if containing matter merchandise. Insurance coverage for mer- that may be mailed as Standard Mail; chandise valued at more than $500 is avail- b. Parcel Post, Bound Printed Matter, Spe- able for an additional fee, as set forth in Fee cial, and Library subclasses of Standard Schedule 943. The maximum liability for Mail. merchandise is $5,000 per piece. For nego- 943.222 Bulk Insurance bears endorse- tiable items, currency, or bullion, the max- ments and identifiers specified by the Postal imum liability is $15. Service. Bulk Insurance mailers must meet 943.123 Indemnity claims for Express Mail the documentation requirements of the Post- must be filed within a specified period of al Service. time from the date the article was mailed. 943.223 Bulk Insurance provides indemnity 943.124 Indemnity will be paid under for the lesser of the actual value of the arti- terms and conditions specified by the Postal cle at the time of mailing, or the wholesale Service. cost of the contents to the sender. 943.125 Among other limitations specified 943.23 Claims. by the Postal Service, indemnity will not be 943.231 For Retail Insurance, a claim for paid by the Postal Service for loss, damage complete loss may be filed by the mailer or rifling: only, and a claim for damage or for partial a. Of nonmailable matter; loss may be filed by either the mailer or ad- b. Due to improper packaging; dressee. For Bulk Insurance, all claims must c. Due to seizure by any agency of govern- be filed by the mailer. ment; or 943.232 A claim for damage or loss on a d. Due to war, insurrection or civil disturb- parcel sent merchandise return under section ances. 932 may be filed only by the purchaser of the 943.13 Fees. insurance.

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943.233 Indemnity claims must be filed chandise or bill of lading, is being mailed, within a specified period of time from the the balance due on a past or anticipated date the article was mailed. transaction may be included in the charges 943.24 Deposit of Mail. on a COD article, provided the addressee has 943.241 Mail insured under section 943.2 consented in advance to such action; must be deposited as specified by the Postal d. Parcels containing moving-picture films Service. mailed by exhibitors to moving-picture man- 943.25 Forwarding and Return. ufacturers, distributors, or exchanges; 943.251 By insuring an item, the mailer e. Goods that have not been ordered by the guarantees forwarding and return postage addressee. unless instructions on the piece mailed indi- 944.23 COD service provides the mailer cate that it not be forwarded or returned. with insurance against loss, rifling and dam- 943.252 Mail undeliverable as addressed age to the article as well as failure to receive will be returned to the sender as specified by the amount collected from the addressee. the sender or by the Postal Service. This provision insures only the receipt of the 943.26 Other Services. instrument issued to the mailer after pay- 943.261 The following services, if applica- ment of COD charges, and is not to be con- ble to the subclass of mail, may be obtained strued to make the Postal Service liable in conjunction with mail sent under this sec- upon any such instrument other than a Post- tion upon payment of the applicable fees: al Service money order. 944.24 A receipt is issued to the mailer for Service Fee each piece of COD mail. Additional copies of schedule the original mailing receipt may be obtained a. Parcel Airlift ...... 951 by the mailer. b. Restricted delivery (for items insured for more 944.25 Delivery of COD mail will be made than $50) ...... 946 in a manner specified by the Postal Service. c. Return receipt (for items insured for more than If a delivery to the mailing address is not at- $50) ...... 945 tempted or if a delivery attempt is unsuc- d. Special handling ...... 952 cessful, a notice of attempted delivery will e. Merchandise return (shippers only) ...... 932 be left at the mailing address. 944.26 The mailer may receive a notice of 943.27 Fees. nondelivery if the piece mailed is endorsed 943.271 The fees for Insurance are set forth appropriately. in Fee Schedule 943. 944.27 The mailer may designate a new ad- 944 Collect on Delivery dressee or alter the COD charges by submitting the appropriate form and by paying the 944.1 Definition appropriate fee as set forth in Fee Schedule 944.11 Collect on Delivery (COD) service is 944. a service that allows a mailer to mail an ar- 944.28 A claim for complete loss may be ticle for which full or partial payment has filed by the mailer only. A claim for damage not yet been received and have the price, the or for partial loss may be filed by either the cost of postage and fees, and anticipated or mailer or addressee. past due charges collected by the Postal 944.29 COD indemnity claims must be filed Service from the addressee when the article within a specified period of time from the is delivered. date the article was mailed. 944.2 Description of Service. 944.3 Requirements of the Mailer. 944.21 COD service is available for collec- 944.31 COD mail must be identified as COD tion of $600 or less upon the delivery of post- mail. age prepaid mail sent under the following 944.4 Deposit of Mail. classification schedules: 944.41 COD mail must be deposited in a a. Express Mail; manner specified by the Postal Service. b. First-Class Mail; 944.5 Forwarding and Return. c. Parcel Post; Bound Printed Matter, Spe- 944.51 A mailer of COD mail guarantees to cial, and Library subclasses of Standard pay any return postage, unless otherwise Mail. specified on the piece mailed. 944.22 Service under this section is not 944.52 For COD mail sent as Standard available for: Mail, postage at the applicable rate will be a. Collection agency purposes; charged to the addressee: b. Return of merchandise about which a. When an addressee, entitled to delivery some dissatisfaction has arisen, unless the to the mailing address under Postal Service new addressee has consented in advance to regulations, requests delivery of COD mail such return; that was refused when first offered for deliv- c. Sending only bills or statements of in- ery; debtedness, even though the sender may es- b. For each delivery attempt, to an ad- tablish that the addressee has agreed to col- dressee entitled to delivery to the mailing lection in this manner; however, when the le- address under Postal Service regulations, gitimate COD shipment consisting of mer- after the second such attempt.

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944.6 Other Services. 946.11 Restricted delivery service is a 944.61 The following services, if applicable service that provides a means by which a to the subclass of mail, may be obtained in mailer may direct that delivery will be made conjunction with mail sent under this sec- only to the addressee or to someone author- tion upon payment of the applicable fee: ized by the addressee to receive such mail. 946.2 Description of Service. Fee 946.21 This service is available for mail Service schedule sent under the following sections: a. Registered mail, if sent as First-Class ...... 942 b. Restricted delivery ...... 946 a. Certified Mail ...... 941 c. Special handling ...... 952 b. COD Mail ...... 944 c. Insurance (if insured for more than 944.7 Fees. $50) ...... 943 944.71 Fees for COD service are set forth in Fee Schedule 944. d. Registered Mail ...... 942

945 Return Receipt 946.22 Restricted delivery is available to the mailer at the time of mailing or after 945.1 Definition. mailing. 945.11 Return receipt service is a service 946.23 Restricted delivery service is avail- that provides evidence to the mailer that an able only to natural persons specified by article has been received at the delivery ad- name. dress. 946.24 A record of delivery will be retained 945.2 Description of Service. by the Postal Service for a specified period 945.21 Return receipt service is available of time. for mail sent under the following sections or 946.25 Failure to provide restricted deliv- classification schedules: ery service when requested after mailing, due to prior delivery, is not grounds for re- a. Certified mail ...... 941 fund of the fee or communications charges. b. COD mail ...... 944 946.3 Fees. c. Insurance (if insured for more than 946.31 The fees for restricted delivery $50) ...... 943 service are set forth in Fee Schedule 946. d. Registered mail ...... 942 e. Delivery Confirmation ...... 948 947 Certificate of Mailing f. Express Mail. g. Priority Mail (merchandise only). 947.1 Definition. h. Standard Mail (limited to merchandise 947.11 Certificate of mailing service is a sent by Parcel Post, Bound Printed service that furnishes evidence of mailing. Matter, Special, and Library 947.2 Description of Service. subclasses). 947.21 Certificate of mailing service is available to mailers of matter sent under the 945.22 Return receipt service is available classification schedule to any class of mail. at the time of mailing or, when purchased in 947.22 A receipt is not obtained upon de- conjunction with certified mail, COD, Insur- livery of the mail to the addressee. No record ance (if for more than $50), registered mail, of mailing is maintained at the post office. or Express Mail, after mailing. 947.23 Additional copies of certificates of 945.23 Mailers requesting return receipt mailing may be obtained by the mailer. service at the time of mailing will be pro- 947.3 Other Services. vided, as appropriate, the signature of the 947.31 The following services, if applicable addressee or addressee’s agent, the date de- to the subclass of mail, may be obtained in livered, and the address of delivery, if dif- conjunction with mail sent under this classi- ferent from the address on the mailpiece. fication schedule upon payment of the appli- 945.24 Mailers requesting return receipt cable fees: service after mailing will be provided the Fee date of delivery and the name of the person Service schedule who signed for the article. 945.25 If the mailer does not receive a re- a. Parcel airlift ...... 951 turn receipt within a specified period of time b. Special handling ...... 952 from the date of mailing, the mailer may request a duplicate return receipt. No fee is 947.4 Fees. charged for a duplicate return receipt. 947.41 The fees for certificate of mailing 945.3 Fees. service are set forth in Fee Schedule 947. 945.31 The fees for return receipt service are set forth in Fee Schedule 945. 948 Delivery Confirmation 948.1 Definition. 946 Restricted Delivery 948.11 Delivery confirmation service pro- 946.1 Definition. vides electronic confirmation to the mailer

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that an article was delivered or that a deliv- Fee ery attempt was made. Service Schedule 948.2 Description of Service. 948.21 Delivery confirmation service is c. Restricted delivery (if insured for more than available for Priority Mail and the Parcel $50) ...... 946 d. Return receipt (if insured for more than $50) ... 945 Post, Bound Printed Matter, Special and Li- e. Special handling ...... 952 brary subclasses of Standard Mail. 948.22 Delivery confirmation service may 951.8 Fees. be requested only at the time of mailing. 951.81 The fees for parcel airlift service 948.23 Mail for which delivery confirma- are set forth in Fee Schedule 951. tion service is requested must meet preparation requirements established by the Postal 952 Special Handling Service, and bear a barcode specified by the Postal Service. 952.1 Definition. 948.24 Matter for which delivery confirma- 952.11 Special handling service is a service tion service is requested must be deposited that provides preferential handling to the ex- in a manner specified by the Postal Service. tent practicable during dispatch and trans- 948.3 Fees. portation. 948.31 Delivery confirmation service is 952.2 Description of Service. subject to the fees set forth in Fee Schedule 952.21 Special handling service is avail- 948. able for mail sent under the following classification schedules: 950 Parcel Handling a. First-Class Mail; b. Parcel Post; Bound Printed Matter; Spe- 951 Parcel Airlift (PAL) cial, and Library subclasses of Standard 951.1 Definition. Mail. 951.11 Parcel airlift service is a service 952.22 Special handling service is manda- that provides for air transportation of par- tory for matter that requires special atten- cels on a space available basis to or from tion in handling, transportation and deliv- military post offices outside the contiguous ery. 48 states. 952.3 Requirements of the Mailer. 951.2 Description of Service. 952.31 Mail sent under this section must 951.21 Parcel airlift service is available be identified as specified by the Postal Serv- for mail sent under the Standard Mail Classi- ice. fication Schedule. 952.4 Deposit of Mail. 951.3 Physical Limitations. 952.41 Mail sent under this section must 951.31 The minimum physical limitations be deposited in a manner specified by the established for the mail sent under the clas- Postal Service. sification schedule for which postage is paid 952.5 Forwarding and Return. apply to parcel airlift mail. In no instance 952.51 If undeliverable as addressed, spe- may the parcel exceed 30 pounds in weight, cial handling mail that is forwarded to the or 60 inches in length and girth combined. addressee is given special handling without 951.4 Requirements of the Mailer. requiring payment of an additional handling 951.41 Mail sent under this section must fee. However, additional postage at the ap- be endorsed as specified by the Postal Serv- plicable Standard Mail rate is collected on ice. delivery. 951.5 Deposit of Mail. 952.6 Other Services. 951.51 PAL mail must be deposited in a 952.61 The following services, if applicable manner specified by the Postal Service. to the subclass of mail, may be obtained in 951.6 Forwarding and Return. conjunction with mail sent under this sec- 951.61 PAL mail sent for delivery outside tion upon payment of the applicable fees: the contiguous 48 states is forwarded as set forth in section 2030 of the General Defini- Service Fee tions, Terms and Conditions. PAL mail sent schedule for delivery within the contiguous 48 states a. COD mail ...... 944 is forwarded or returned as set forth in sec- b. Insurance ...... 943 tion 353 as appropriate. c. Parcel airlift ...... 951 951.7 Other Services. d. Merchandise return (shippers only) ...... 932 951.71 The following services, if applicable to the subclass of mail, may be obtained in 952.7 Fees. conjunction with mail sent under this sec- 952.71 The fees for special handling service tion upon payment of the applicable fees: are set forth in Fee Schedule 952.

Fee 960 Stamped Paper Service Schedule 961 Stamped Envelopes a. Certificate of mailing ...... 947 b. Insurance ...... 943 961.1 Definition.

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961.11 Plain stamped envelopes and print- GENERAL DEFINITIONS, TERMS AND ed stamped envelopes are envelopes with CONDITIONS postage thereon offered for sale by the Post- al Service. 1000 GENERAL DEFINITIONS 961.2 Description of Service. As used in this Domestic Mail Classifica- 961.21 Stamped envelopes are available tion Schedule, the following terms have the for: meanings set forth below. a. First-Class Mail within the first rate increment. 1001 ADVERTISING b. Standard Mail mailed at a minimum per Advertising includes all material for the piece rate as specified by the Postal Service. publication of which a valuable consider- 961.22 Printed stamped envelopes may be ation is paid, accepted, or promised, that obtained by special request. calls attention to something for the purpose 961.3 Fees. of getting people to buy it, sell it, seek it, or 961.31 The fees for stamped envelopes are support it. If an advertising rate is charged set forth in Fee Schedule 961. for the publication of reading matter or other material, such material shall be 962 Stamped Cards deemed to be advertising. Articles, items, 962.1 Definition. and notices in the form of reading matter in- 962.11 Stamped Cards. Stamped Cards are serted in accordance with a custom or under- cards with postage imprinted or impressed standing that textual matter is to be in- on them and supplied by the Postal Service serted for the advertiser or his products in for the transmission of messages. the publication in which a display advertise- 962.12 Double Stamped Cards. Double ment appears are deemed to be advertising. Stamped Cards consist of two attached If a publisher advertises his own services or cards, one of which may be detached by the publications, or any other business of the receiver and returned by mail as a single publisher, whether in the form of display ad- Stamped Card. vertising or editorial or reading matter, this 962.2 Description of Service. Stamped is deemed to be advertising. Cards are available for First-Class Mail. 1002 ASPECT RATIO 962.3 Fees. The fees for Stamped Cards are set forth in Fee Schedule 962. Aspect ratio is the ratio of width to length.

970 Postal Money Orders 1003 BILLS AND STATEMENTS OF ACCOUNT

971 Domestic Postal Money Orders 1003.1 A bill is a request for payment of a definite sum of money claimed to be owing 971.1 Definition. by the addressee either to the sender or to a 971.11 Money order service is a service third party. The mere assertion of an indebt- that provides the customer with an instru- edness in a definite sum combined with a de- ment for payment of a specified sum of mand for payment is sufficient to make the money. message a bill. 971.2 Description of Service. 1003.2 A statement of account is the asser- 971.21 The maximum value for which a do- tion of the existence of a debt in a definite mestic postal money order may be purchased amount but which does not necessarily con- is $700. Other restrictions on the number or tain a request or a demand for payment. The dollar value of postal money order sales, or amount may be immediately due or may be- both, may be imposed by law or under regu- come due after a certain time or upon de- lations prescribed by the Postal Service. mand or billing at a later date. 971.22 A receipt of purchase is provided at 1003.3 A bill or statement of account must no additional cost. present the particulars of an indebtedness 971.23 The Postal Service will replace with sufficient definiteness to inform the money orders that are spoiled or incorrectly debtor of the amount required for acquittal prepared, regardless of who caused the error, of the debt. However, neither a bill nor a without charge if replaced on the date origi- statement of account need state the precise nally issued. amount if it contains sufficient information 971.24 If a replacement money order is to enable the debtor to determine the exact issued after the date of original issue be- amount of the claim asserted. cause the original was spoiled or incorrectly 1003.4 A bill or statement of account is prepared, the applicable money order fee not the less a bill or statement of account may be collected from the customer. merely because the amount claimed is not in 971.25 Inquiries or claims may be filed by fact owing or may not be legally collectible. the purchaser, payee, or endorsee. 1004 GIRTH 971.3 Fees. 971.31 The fees for domestic postal money Girth is the measurement around a piece of orders are set forth in Fee Schedule 971. mail at its thickest part.

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1005 INVOICE tion is the mere presentation of unsupported opinion. An invoice is a writing showing the nature, c. Scientific. A nonprofit organization quantity, and cost or price of items shipped whose primary purpose is one of the fol- or sent to a purchaser or consignor. lowing: 1006 PERMIT IMPRINTS i. To conduct research in the applied, pure or natural sciences; Permit imprints are printed indicia indi- ii. To disseminate systematized technical cating postage has been paid by the sender information dealing with applied, pure or under the permit number shown. natural sciences. d. Philanthropic. A nonprofit organization 1007 PREFERRED RATES primarily organized and operated for pur- Preferred rates are the reduced rates estab- poses beneficial to the public. Philanthropic lished pursuant to 39 U.S.C. 3626. organizations include, but are not limited to, organizations that are organized for: 1008 ZIP CODE i. Relief of the poor and distressed or of the underprivileged; The ZIP Code is a numeric code that facili- ii. Advancement of religion; tates the sortation, routing, and delivery of iii. Advancement of education or science; mail. iv. Erection or maintenance of public 1009 NONPROFIT ORGANIZATIONS AND buildings, monuments, or works; ASSOCIATIONS v. Lessening of the burdens of government; vi. Promotion of social welfare by organi- Nonprofit organizations or associations are zations designed to accomplish any of the organizations or associations not organized above purposes or: for profit, none of the net income of which (A) To lessen neighborhood tensions; benefits any private stockholder or indi- (B) To eliminate prejudice and discrimina- vidual, and which meet the qualifications set tion; forth below for each type of organization or (C) To defend human and civil rights se- association. The standard of primary purpose cured by law; or applies to each type of organization or asso- (D) To combat community deterioration ciation, except veterans’ and fraternal. The and juvenile delinquency. standard of primary purpose requires that e. Agricultural. A nonprofit organization each type of organization or association be whose primary purpose is the betterment of both organized and operated for the primary the conditions of those engaged in agri- purpose. The following are the types of orga- culture pursuits, the improvement of the nizations or associations that may qualify as grade of their products, and the development authorized nonprofit organizations or asso- of a higher degree of efficiency in agri- ciations. culture. The organization may advance agri- a. Religious. A nonprofit organization cultural interests through educational ac- whose primary purpose is one of the fol- tivities; the holding of agricultural fairs; the lowing: collection and dissemination of information i. To conduct religious worship; concerning cultivation of the soil and its ii. To support the religious activities of fruits or the harvesting of marine resources; nonprofit organizations whose primary pur- the rearing, feeding, and management of pose is to conduct religious worship; livestock, poultry, and bees, or other activi- iii. To perform instruction in, to dissemi- ties relating to agricultural interests. The nate information about, or otherwise to fur- term agricultural nonprofit organization ther the teaching of particular religious also includes any nonprofit organization faiths or tenets. whose primary purpose is the collection and b. Educational. A nonprofit organization dissemination of information or materials whose primary purpose is one of the fol- relating to agricultural pursuits. lowing: f. Labor. A nonprofit organization whose i. The instruction or training of the indi- primary purpose is the betterment of the vidual for the purpose of improving or devel- conditions of workers. Labor organizations oping his capabilities; include, but are not limited to, organizations ii. The instruction of the public on subjects in which employees or workmen participate, beneficial to the community. whose primary purpose is to deal with em- An organization may be educational even ployers concerning grievances, labor dis- though it advocates a particular position or putes, wages, hours of employment and viewpoint so long as it presents a suffi- working conditions. ciently full and fair exposition of the perti- g. Veterans’. A nonprofit organization of nent facts to permit an individual or the veterans of the armed services of the United public to form an independent opinion or States, or an auxiliary unit or society of, or conclusion. On the other hand, an organiza- a trust or foundation for, any such post or tion is not educational if its principal func- organization.

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h. Fraternal. A nonprofit organization that b. When remailed by the commercial agen- meets all the following criteria: cy, the mail is subject to payment of new i. Has as its primary purpose the fostering postage. of brotherhood and mutual benefits among 2026 Mail Addressed To Organizations. its members; Mail addressed to governmental units, pri- ii. Is organized under a lodge or chapter vate organizations, corporations, unincor- system with a representative form of govern- porated firms or partnerships, persons at in- ment; stitutions (including but not limited to hos- iii. Follows a ritualistic format; and pitals and prisons), or persons in the mili- iv. Is comprised of members who are elect- tary is delivered as addressed or to an au- ed to membership by vote of the members. thorized agent. 2027 Held Mail. Mail will be held for a 2000 DELIVERY OF MAIL specified period of time at the office of delivery upon request of the addressee, unless the 2010 DELIVERY SERVICES mail: The Postal Service provides the following a. Has contrary retention instructions; modes of delivery: b. Is perishable; or a. Caller service. The fees for caller service c. Is registered, COD, insured, return re- are set forth in Fee Schedule 921. ceipt, certified, or Express Mail for which b. Carrier delivery service. the normal retention period expires before c. General delivery. the end of the specified holding period. d. Post office box service. The fees for post office box service are set forth in Fee Sched- 2030 FORWARDING AND RETURN ule 921. 2031 Forwarding. Forwarding is the trans- 2020 CONDITIONS OF DELIVERY fer of undeliverable-as-addressed mail to an address other than the one originally placed 2021 General. Except as provided in sec- on the mailpiece. All post offices will honor tion 2022, mail will be delivered as addressed change–of–address orders for a period of time unless the Postal Service is instructed other- specified by the Postal Service. wise by the addressee in writing. 2032 Return. Return is the delivery of un- 2022 Refusal of Delivery. The addressee deliverable-as-addressed mail to the sender. may control delivery of his mail. The ad- 2033 Applicable provisions. The provisions dressee may refuse to accept a piece of mail of sections 150, 250, 350 and 450, 935 and 936 that does not require a delivery receipt at apply to forwarding and return. the time it is offered for delivery or after de- 2034 Forwarding for Postal Service Ad- livery by returning it unopened to the Postal justments. When mail is forwarded due to Service. For mail that requires a delivery re- Postal Service adjustments (such as, but not ceipt, the addressee or his representative limited to, the discontinuance of the post of- may read and copy the name of the sender of fice of original address, establishment of registered, insured, certified, COD, return re- rural carrier service, conversion to city de- ceipt, and Express Mail prior to accepting livery service from rural, readjustment of delivery. Upon signing the delivery receipt delivery districts, or renumbering of houses the piece may not be returned to the Postal and renaming of streets), it is forwarded Service without the applicable postage and without charge for a period of time specified fees affixed. by the Postal Service. 2023 Receipt. If a signed receipt is required, mail will be delivered to the ad- 3000 POSTAGE AND PREPARATION dressee (or competent member of his family), to persons who customarily receive his mail 3010 PACKAGING or to one authorized in writing to receive the Mail must be packaged so that: addressee’s mail. a. The contents will be protected against 2024 Jointly Addressed Mail. Mail ad- deterioration or degradation; dressed to several persons may be delivered to any one of them. When two or more per- b. The contents will not be likely to dam- sons make conflicting orders for delivery for age other mail, Postal Service employees or the same mail, the mail shall be delivered as property, or to become loose in transit; determined by the Postal Service. c. The package surface must be able to re- 2025 Commercial Mail Receiving Agents. tain postage indicia and address markings; Mail may be delivered to a commercial mail d. It is marked by the mailer with a mate- receiving agency on behalf of another person. rial that is neither readily water soluble nor In consideration of delivery of mail to the easily rubbed off or smeared, and the mark- commercial agent, the addressee and the ing will be sharp and clear. agent are considered to agree that: 3020 ENVELOPES a. No change–of–address order will be filed with the post office when the agency rela- Paper used in the preparation of envelopes tionship is terminated; may not be of a brilliant color. Envelopes

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must be prepared with paper strong enough cases involving returned articles improperly to withstand normal handling. accepted because of excess size or weight, a refund may be made. 3030 PAYMENT OF POSTAGE AND FEES 3090 CALCULATION OF POSTAGE Postage must be fully prepaid on all mail at the time of mailing, except as authorized When a rate schedule contains per piece by law or this Schedule. Except as author- and per pound rates, the postage shall be the ized by law or this Schedule, mail deposited sum of the charges produced by those rates. without prepayment of sufficient postage When a rate schedule contains a minimum shall be delivered to the addressee subject to per piece rate and a pound rate, the postage payment of deficient postage, returned to shall be the greater of the two. When the the sender, or otherwise disposed of as speci- computation of postage yields a fraction of a fied by the Postal Service. Mail deposited cent in the charge, the next higher whole without any postage affixed will be returned cent must be paid. to the sender without any attempt at delivery. 4000 POSTAL ZONES 4010 GEOGRAPHIC UNITS OF AREA 3040 METHODS FOR PAYING POSTAGE AND FEES In the determination of postal zones, the Postage for all mail may be prepaid with earth is considered to be divided into units of postage meter indicia, adhesive stamps, or area thirty minutes square, identical with a permit imprint, unless otherwise limited or quarter of the area formed by the inter- specified by the Postal Service. The fol- secting parallels of latitude and meridians of lowing methods of paying postage and fees longitude. The distance between these units require prior authorization from the Postal of area is the basis of the postal zones. Service: 4020 MEASUREMENT OF ZONE DISTANCES a. Permit imprint, b. Postage meter, The distance upon which zones are based c. Precanceled stamps, precanceled enve- shall be measured from the center of the unit lopes, and mailer’s precanceled postmarks. of area containing the dispatching sectional center facility or multi-ZIP coded post office 3050 AUTHORIZATION FEES not serviced by a sectional center facility. A Fees for authorization to use a permit im- post office of mailing and a post office of de- print are set forth in Fee Schedule 1000. No livery shall have the same zone relationship fee is charged for authorization to use a as their respective sectional center facilities postage meter. Fees for setting postage me- or multi-ZIP coded post offices, but this ters are set forth in Fee Schedule 933. No fee shall not cause two post offices to be re- is charged for authorization to use garded as within the same local zone. precanceled stamps, precanceled envelopes 4030 DEFINITION OF ZONES or mailer’s precanceled postmark. 4031 Local Zone. The local zone applies to 3060 SPECIAL SERVICE FEES mail mailed at any post office for delivery at Fees for special services may be prepaid in that office; at any city letter carrier office any manner appropriate for the class of mail or at any point within its delivery limits for indicated or as otherwise specified by the delivery by carriers from that office; at any Postal Service. office from which a rural route starts for delivery on the same route; and on a rural 3070 MARKING OF UNPAID MAIL route for delivery at the office from which the route starts or on any rural route start- Matter authorized for mailing without pre- ing from that office. payment of postage must bear markings 4032 First Zone. The first zone includes all identifying the class of mail service. Matter territory within the quadrangle of entry in so marked will be billed at the applicable conjunction with every contiguous quad- rate of postage set forth in this Schedule. rangle, representing an area having a mean Matter not so marked will be billed at the radial distance of approximately 50 miles applicable First-Class rate of postage. from the center of a given unit of area. The first zone also applies to mail between two 3080 REFUND OF POSTAGE post offices in the same sectional center. When postage and special service fees have 4033 Second Zone. The second zone in- been paid on mail for which no service is ren- cludes all units of area outside the first zone dered for the postage or fees paid, or col- lying in whole or in part within a radius of lected in excess of the lawful rate, a refund approximately 150 miles from the center of a may be made. There shall be no refund for given unit of area. registered, COD, general insurance, and Ex- 4034 Third Zone. The third zone includes press Mail Insurance fees when the article is all units of area outside the second zone withdrawn by the mailer after acceptance. In lying in whole or in part within a radius of

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approximately 300 miles from the center of a essary to transport military mail directly given unit of area. between military post offices. 4035 Fourth Zone. The fourth zone includes all units of area outside the third zone 5000 PRIVACY OF MAIL lying in whole or in part within a radius approximately 600 miles from the center of a 5010 FIRST-CLASS AND EXPRESS MAIL given unit of area. Matter mailed as First-Class Mail or Ex- 4036 Fifth Zone. The fifth zone includes press Mail shall be treated as mail which is all units of area outside the fourth zone sealed against postal inspection and shall lying in whole or in part within a radius of not be opened except as authorized by law. approximately 1,000 miles from the center of a given unit of area. 5020 ALL OTHER MAIL 4037 Sixth Zone. The sixth zone includes Matter not paid at First-Class Mail or Ex- all units of area outside the fifth zone lying press Mail rates must be wrapped or secured in whole or in part within a radius of ap- in the manner specified by the Postal Serv- proximately 1,400 miles from the center of a ice so that the contents may be examined. given unit of area. Mailing of sealed items as other than First- 4038 Seventh Zone. The seventh zone in- Class Mail or Express Mail is considered concludes all units of area outside the sixth zone sent by the sender to the postal inspection of lying in whole or in part within a radius of the contents. approximately 1,800 miles from the center of a given unit of area. 6000 MAILABLE MATTER 4039 Eighth Zone. The eighth zone includes all units of area outside the seventh 6010 GENERAL zone. Mailable matter is any matter which: 4040 ZONED RATES a. Is not mailed in contravention of 39 U.S.C. Chapter 30, or of 17 U.S.C. 109; Except as provided in section 4050, rates b. While in the custody of the Postal Serv- according to zone apply for zone-rated mail ice is not likely to become damaged itself, to sent between Postal Service facilities includ- damage other pieces of mail, to cause injury ing armed forces post offices, wherever lo- to Postal Service employees or to damage cated. Postal Service property; and c. Is not mailed contrary to any special 4050 APO/FPO MAIL conditions or limitations placed on transpor- 4051 General. Except as provided in sec- tation or movement of certain articles, when tion 4052, the rates of postage for zone-rated imposed under law by the U.S. Department mail transported between the United States, of the Treasury; U.S. Department of Agri- or the possessions or territories of the culture; U.S. Department of Commerce; U.S. United States, on the one hand, and Army, Department of Health and Human Services, Air Force and Fleet Post Offices on the U.S. Department of Transportation; and any other, or among the latter, shall be the ap- other Federal department or agency having plicable zone rates for mail between the legal jurisdiction. place of mailing or delivery and the city of the postmaster serving the Army, Air Force 6020 MINIMUM SIZE STANDARDS or Fleet Post Office concerned. The following minimum size standards 4052 Transit Mail. The rates of postage for apply to all mailable matter: zone-rated mail that is mailed at or ad- a. All items must be at least 0.007 inches dressed to an Armed Forces post office and is thick, and transported directly to or from Armed b. all items, other than keys and identi- Forces post offices at the expense of the De- fication devices, which are 0.25 inch thick or partment of Defense, without transiting any less must be of the 48 contiguous states (including the i. rectangular in shape, District of Columbia), shall be the applicable ii. at least 3.5 inches in width, and local zone rate; provided, however, that if the distance from the place of mailing to the iii. at least 5 inches in length. embarkation point or the distance from the 6030 MAXIMUM SIZE AND WEIGHT STANDARDS point of debarkation to the place of delivery is greater than the local zone for such mail, Where applicable, the maximum size and postage shall be assessed on the basis of the weight standards for each class or subclass of distance from the place of mailing to the em- mail are set forth in sections 130, 230, 322.16, barkation point or the distance from the 330 and 430. Additional limitations may be point of debarkation to the place of delivery applicable to specific subclasses, and rate of such mail, as the case may be. The word and discount categories as provided in the ‘‘transiting’’ does not include enroute trans- eligibility provisions for each subclass or fers at coastal gateway cities which are nec- category.

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RATE SCHEDULES When a rate schedule contains a minimum- per-piece rate and a pound rate, the postage Calculation of Postage shall be the greater of the two. When a rate schedule contains per-piece When the computation of postage yields a and per pound rates, the postage shall be the fraction of a cent in the charge, the next sum of the charges produced by those rates. higher whole cent must be paid.

EXPRESS MAIL SCHEDULES 121, 122 AND 123 [Dollars]

Schedule 121 Schedule 123 Schedule 123 Weight not exceeding same day airport Schedule 122 next day and second next day and second (Pounds) service custom designed day PO to PO day PO to addressee

1⁄2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

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EXPRESS MAIL SCHEDULES 121, 122 AND 123—Continued [Dollars]

Schedule 121 Schedule 123 Schedule 123 Weight not exceeding same day airport Schedule 122 next day and second next day and second (Pounds) service custom designed day PO to PO day PO to addressee

61 62 63 64 65 66 67 68 69 70 1 The applicable 2-pound rate is charged for matter sent in a ‘flat rate’ envelope provided by the Postal Service 2 Add $lll for each pickup stop. 3 Add $lll for each Custom Designed delivery stop.

FIRST-CLASS MAIL RATE SCHEDULE 221— 7 Rate applies to letter-size Automation-Presort category mail presorted to carrier routes specified by the Postal Serv- LETTERS AND SEALED PARCELS ice. 8 Rates apply to bulk-entered mailings of at least 500 flat- Rate size pieces, each of which must be delivery-point barcoded or (cents) bear a ZIP+4 barcode, and must meet other preparation requirements specified by the Postal Service. Regular 9 Rate applies to flat-size Automation-Presort category mail not mailed at the 3⁄5-Digit rate. Single Piece: First Ounce 10 Rate applies to flat-size Automation-Presort category mail Presort 1 presorted to single or multiple three- and five-digit ZIP Code Qualified Business Reply Mail destinations as specified by the Postal Service. Additional Ounce 2 Nonstandard Surcharge FIRST-CLASS MAIL RATE SCHEDULE 222— Single Piece Presort CARDS

Automation—Presort 1 Rate Letters 3 (cents) Basic Presort 4 3-Digit Presort 5 Regular 5-Digit Presort 6 Single Piece Carrier Route Presort 7 Presort 1 Flats 8 Qualified Business Reply Mail Basic Presort 9 1,2 3⁄5-Digit Presort 10 Automatic-Presort Additional Ounce 2 Basic Presort 3 Nonstandard Surcharge 3-Digit Presort 4 1 A mailing fee of $lll must be paid once each year at 5-Digit Presort 5 each office of mailing by any person who mails other than Carrier Route Presort 6 Single Piece First-Class Mail. Payment of the fee allows the mailer to mail at any First-Class rate. For presorted mailings 1 A mailing fee of $lll must be paid once each year at weighing more than 2 ounces, subtract $lll cents per each office of mailing by any person who mails other than piece. Single Piece First-Class Mail. Payment of the fee allows the 2 Rate applies through 13 ounces. Heavier pieces are sub- mailer to mail at any First-Class rate. ject to Priority Mail rates. 2 Rates apply to bulk-entered mailings of at least 500 3 Rates apply to bulk-entered mailings of at least 500 letter- pieces, which must be barcoded and meet other preparation size pieces, which must be delivery point barcoded and meet requirements specified by the Postal Service. other preparation requirements specified by the Postal Serv- 3 Rate applies to Automation-Presort category mail not ice. mailed at 3-Digit, 5-Digit, or Carrier Route rates. 4 Rate applies to letter-size Automation-Presort category 4 Rate applies to Automation-Presort category mail mail not mailed at 3-Digit, 5-Digit, or Carrier Route rates. presorted to single or multiple three-digit ZIP Code destina- 5 Rate applies to letter-size Automation-Presort category tions as specified by the Postal Service. mail presorted to single or multiple three-digit ZIP Code des- 5 Rate applies to Automation-Presort category mail tinations specified by Postal Service. presorted to single or multiple five-digit ZIP Code destinations 6 Rate applies to letter-size Automation-Presort category as specified by the Postal Service. mail presorted to single or multiple five-digit ZIP Code des- 6 Rate applies to Automation-Presort category mail tinations specified by the Postal Service. presorted to carrier routes specified by the Postal Service.

FIRST-CLASS MAIL SCHEDULE 223—PRIORITY MAIL SUBCLASS [Dollars]

Weight not exceeding (pounds) L, 1, 2, 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8

1 2 3

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FIRST-CLASS MAIL SCHEDULE 223—PRIORITY MAIL SUBCLASS—Continued [Dollars]

Weight not exceeding (pounds) L, 1, 2, 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 1 The 2-pound rate is charged for matter sent in a ‘flat rate’ envelope provided by the Postal Service. 2 Add $lll for each pickup stop. 3 Exception: Parcels weighing less than 15 pounds, measuring over 84 inches in length and girth combined, are chargeable with a minimum rate equal to that for a 15-pound parcel for the zone to which addressed.

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STANDARD MAIL RATE SCHEDULE 321.2A— 5 Rate applies to letter-size automation mail presorted to single or multiple five-digit ZIP Code destinations as specified REGULAR SUBCLASS PRESORT CATEGORY 1 by the Postal Service. 6 For flat-size automation mail meeting applicable Postal Rate Service regulations. (cents) 7 Mailer pays either the minimum piece rate or the pound rate, whichever is higher. 8 Rate applies to flat-size automation mail not mailed at 3/5- Letter Size digit rate. Piece Rate 9 Rate applies to flat-size automation mail presorted to sin- Basic gle or multiple three- and five-digit ZIP Code destinations as 3/5-Digit specified by the Postal Service. Destination Entry Discount per Piece BMC STANDARD MAIL RATE SCHEDULE 321.3— SCF ENHANCED CARRIER ROUTE SUBCLASS 1 Non-Letter Size 2 Rate Piece Rate (cents) Minimum per Piece 3 Basic Letter Size 3/5 Digit Piece Rate Destination Entry Discount per Piece Basic BMC Basic Automated Letter 2 SCF High Density Pound Rate 3 Saturation Plus per Piece Rate Destination Entry Discount per Piece Basic BMC 3/5-Digit SCF Destination Entry Discount per Pound DDU BMC 3 SCF Non-Letter Size Piece Rate 1 A fee $lll must be paid each 12-month period for Minimum per Piece 4 each bulk mailing permit. Basic 2 Residual shape pieces are subject to a surcharge of $lll per piece. High Density 3 Mailer pays either the minimum piece rate or the pound Saturation rate, whichever is higher. Destination Entry Discount per Piece BMC STANDARD MAIL RATE SCHEDULE 321.2B— SCF DDU 1 REGULAR SUBCLASS AUTOMATION CATEGORY Pound Rate 4 Plus per Piece Rate Rate Basic (cents) High Density Saturation 2 Letter Size Destination Entry Discount per Pound Piece Rate BMC Basic Letter 3 SCF 3-Digit Letter 4 DDU 5-Digit Letter 5 1 A fee of $lll must be paid each 12-month period for Destination Entry Discount per Piece each bulk mailing permit. BMC 2 Rate applies to letter-size automation mail presorted to SCF routes specified by the Postal Service. 3 Residual shape pieces are subject to a surcharge of Flat Size 6 $lll per piece. Piece Rate 4 Mailer pays either the minimum piece rate or the pound Minimum per Piece 7 rate, whichever is higher. Basic Flat 8 3/5-Digit Flat 9 STANDARD MAIL RATE SCHEDULE 321.4A— Destination Entry Discount per Piece NONPROFIT SUBCLASS PRESORT CATEGORIES 1 BMC [Full rates] SCF Pound Rate 7 Rates Plus per piece Rate (cents) Basic Flat 8 9 3/5-Digit Flat Letter Size Destination Entry Discount per Pound BMC Piece Rate SCF Basic 3/5-Digit 1 A fee of $lll must be paid once each 12-month period Destination Entry Discount per Piece for each bulk mailing permit. BMC 2 For letter-size automation pieces meeting applicable Post- SCF al Service regulations. 3 Rate applies to letter-size automation mail not mailed at 3- Non-Letter Size 2 digit, 5-digit or carrier route rates. 4 Rate applies to letter-size automation mail presorted to Piece Rate single or multiple three-digit ZIP Code destinations as speci- Minimum per Piece 3 fied by the Postal Service. Basic

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STANDARD MAIL RATE SCHEDULE 321.4A— 3 Rate applies to letter-size automation mail not mailed at 3- digit, 5-digit or carrier route rates. NONPROFIT SUBCLASS PRESORT 4 Rate applies to letter-size automation mail presorted to CATEGORIES 1—Continued single or multiple three-digit ZIP Code destinations as specified by the Postal Service. [Full rates] 5 Rate applies to letter-size automation mail presorted to single or multiple five-digit ZIP Code destinations as specified Rates by the Postal Service. (cents) 6 For flat-size automation mail meeting applicable Postal Service regulations. 7 3/5-Digit Mail pays either the minimum piece rate or the pound rate, Destination Entry Discount per Piece whichever is higher. 8 Rate applies to flat-size automation mail not mailed at 3/5- BMC digit rate. SCF 9 Rate applies to flat-size automation mail presorted to sin- Pound Rate 3 gle or multiple three- and five-digit ZIP Code destinations as Plus per Piece Rate specified by the Postal Service. Basic 3/5-Digit STANDARD MAIL RATE SCHEDULE 321.5—NON- Destination Entry Discount per Pound BMC PROFIT ENHANCED CARRIER ROUTE SCF SUBCLASS 1 1 A fee of $lll must be paid once each 12-month period [Full rates] for each bulk mailing permit. 2 Residual shape pieces are subject to a surcharge off Rates $lll per piece. (cents) 3 Mailer pays either the minimum piece rate or the pound rate, whichever is higher. Letter Size Piece Rate STANDARD MAIL RATE SCHEDULE 321.4B— Basic NONPROFIT SUBCLASS AUTOMATION Basic Automated Letter 2 CATEGORIES 1 High Density [Full rates] Saturation Destination Entry Discount per Piece Rates BMC (cents SCF DDU Letter Size 2 Non-Letter Size 3 Piece Rate Piece Rate Basic Letter 3 4 3-Digit Letter 4 Minimum per Piece 5-Digit Letter 5 Basic Destination Entry Discount per Piece High Density BMC Saturation SCF Destination Entry Discount per Piece BMC Flat Size 6 SCF Piece Rate DDU Minimum per Piece 7 Pound Rate 4 Basic Flat 8 Plus per Piece Rate 3/5-Digit Flat 9 Basic Destination Entry Discount per Piece High Density BMC Saturation SCF Destination Entry Discount per Pound 7 Pound Rate BMC Plus per Piece Rate SCF 8 Basic Flat DDU 3/5-Digit Flat 9 Destination Entry Discount per Pound 1 A fee of $lll must be paid once each 12-month period BMC for each bulk mailing permit. SCF 2 Rate applies to letter-size automation mail presorted to routes specified by the Postal Service. 1 A fee of $lll must be paid once each 12-month period 3 Residual shape pieces are subject to a surcharge off for each bulk mailing permit. $lll per piece. 2 For letter-size automation pieces meeting applicable Post- 4 Mailer pays either the minimum piece rate or the pound al Service regulations. rate, whichever is higher.

STANDARD MAIL RATE SCHEDULE 322.1A *—PARCEL POST SUBCLASS INTER-BMC RATES [Dollars]

Weight not exceeding (pounds) Zone 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8

2 3 4 5 6

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STANDARD MAIL RATE SCHEDULE 322.1A *—PARCEL POST SUBCLASS INTER-BMC RATES— Continued [Dollars]

Weight not exceeding (pounds) Zone 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Oversize parcels 6 * Notes: 1 For nonmachinable Inter-BMC parcels, add: $lll per piece. 2 For each pickup stop, add: $lll

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3 For Origin Bulk Mail Center Discount, deduct $lll per piece. 4 For BMC Presort, deduct $lll per piece. 5 For Barcoded Discount, deduct $lll per piece. 6 See DMCS section 322.161 for oversize Parcel Post. 7 Parcel Post pieces exceeding 84 inches in length and girth combined and weighing less than 15 pounds are subject to a rate equal to that for a 15 pound parcel for the zone to which the parcel is addressed.

STANDARD MAIL RATE SCHEDULE 322.1B*—PARCEL POST SUBCLASS INTRA-BMC RATES [Dollars]

Weight not exceeding (pounds) Local Zone 1 & 2 Zone 3 Zone 4 Zone 5

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66

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STANDARD MAIL RATE SCHEDULE 322.1B*—PARCEL POST SUBCLASS INTRA-BMC RATES— Continued [Dollars]

Weight not exceeding (pounds) Local Zone 1 & 2 Zone 3 Zone 4 Zone 5

67 68 69 70 Oversize parcels 3 * Notes: 1 For each pickup stop, add $lll. 2 For Barcoded Discount, deduct $lll. 3 See DMCS section 322.161 for oversize Parcel Post. 4 Parcel Post pieces exceeding 94 inches in length and girth combined and weighing less than 15 pounds are subject to a rate equal to that for a 15 pound parcel for the zone to which the parcel is addressed.

STANDARD MAIL RATE SCHEDULE 322.1C*—PARCEL POST SUBCLASS DESTINATION BMC RATES [Dollars]

Weight not exceeding (pounds) Zone 1 & 2 Zone 3 Zone 4 Zone 5

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53

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STANDARD MAIL RATE SCHEDULE 322.1C*—PARCEL POST SUBCLASS DESTINATION BMC RATES— Continued [Dollars]

Weight not exceeding (pounds) Zone 1 & 2 Zone 3 Zone 4 Zone 5

54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Oversize parcels 2 * Notes: 1 For Barcoded Discount, deduct $lll. 2 See DMCS section 322.161 for oversize Parcel Post. 3 Parcel Post pieces exceeding 84 inches in length and girth combined and weighing less than 15 pounds are subject to a rate equal to that for a 15 pound parcel for the zone to which the parcel is addressed. 4 A fee of lll must be paid each for DBMC, DSCF, and DDU.

STANDARD MAIL RATE SCHEDULE 322.ID*— STANDARD MAIL RATE SCHEDULE 322.ID*— PARCEL POST SUBCLASS DESTINATION SCF PARCEL POST SUBCLASS DESTINATION SCF RATES RATES—Continued [Dollars] [Dollars]

Weight (pounds) Weight (pounds) Weight (pounds) Weight (pounds)

36 Oversize parcels 1 237*Notes: 3381 See DMCS section 322.161 for oversize Parcel Post. 4392 Parcel Post pieces exceeding 84 inches in length and girth 540combined and weighing less than 15-pounds are subject to a 641rate equal to that for a 15 pound parcel for the zone to which the parcel is addressed. 7423 A fee of $lll must be paid each year for DBMC, 843DSCF, and DDU. 944 10 45 STANDARD MAIL RATE SCHEDULE 322.1E*— 11 46 ARCEL OST UBCLASS ESTINATION ELIV 12 47 P P S D D - 13 48 ERY UNIT RATES 14 49 [Dollars] 15 50 16 51 Weight (pounds) Weight (pounds) 17 52 18 53 36 19 54 237 20 55 338 439 21 56 540 22 57 641 23 58 742 24 59 843 25 60 944 26 61 10 45 27 62 11 46 28 63 12 47 29 64 13 48 30 65 14 49 31 66 15 50 32 67 16 51 33 68 17 52 34 69 18 53 35 70 19 54

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STANDARD MAIL RATE SCHEDULE 322.1E*— STANDARD MAIL RATE SCHEDULE 322.1E*— PARCEL POST SUBCLASS DESTINATION DELIV- PARCEL POST SUBCLASS DESTINATION DELIV- ERY UNIT RATES—Continued ERY UNIT RATES—Continued [Dollars] [Dollars]

Weight (pounds) Weight (pounds) Weight (pounds) Weight (pounds)

20 55 33 68 21 56 34 69 22 57 35 70 23 58 1 24 59 Oversize parcels 25 60 *Notes: 26 61 1 See DMCS section 322.161 for oversize Parcel Post. 27 62 2 Parcel Post pieces exceeding 84 inches in length and girth 28 63 combined and weighing less than 15-pounds are subject to a 29 64 rate equal to that for a 15 pound parcel for the zone to which 30 65 the parcel is addressed. 31 66 3 A fee of $lll must be paid each year for DBMC, 32 67 DSCF, and DDU.

STANDARD MAIL RATE SCHEDULE 322.3A*—BOUND PRINTED MATTER SUBCLASS SINGLE PIECE RATES 1 [Dollars]

Zones Weight not exceed- Local ing (pounds) 1 & 2345678

1.5 2 2.5 3 3.5 4 4.5 5 6 7 8 9 10 11 12 13 14 15 Per Piece Rate Per Pound Rate *Notes: 1Includes both catalogs and similar bound printed matter. 2 For barcoded discount, deduct $lll per piece.

STANDARD MAIL RATE SCHEDULE 322.3B—BOUND PRINTED MATTER SUBCLASS BULK AND CARRIER ROUTE PRESORT RATES 1 [Dollars]

Zone Per piece3 Carrier route2 Per pound

Local 1&2 3 4 5 6 7 8 1 Includes both catalogs and similar bound printed matter. 2 Applies to mailings of at least 300 pieces presorted to carrier route as specified by the Postal Service. 3 For Barcoded Discount, deduct $lll per piece.

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STANDARD MAIL RATE SCHEDULES 323.1 AND STANDARD MAIL RATE SCHEDULES 323.1 AND 323.2 SPECIAL AND LIBRARY RATE SUBCLASSES 323.2 SPECIAL AND LIBRARY RATE SUBCLASSES—Continued Rates (cents) Rates (cents) Schedule 323.1: Special LEVEL A Presort First Pound. (5-digits) 12. 4 Not presorted . LEVEL B Presort LEVEL A Presort (BMC) 134. (5-digits) 12. Each additional pound LEVEL B Presort through 7 pounds. (BMC) 134. Each additional pound Each additional pound through 7 pounds. over 7 pounds. Each additional pound 1 A fee of $ lll must be paid once 12-month period for over 7 pounds. each permit. 2 Schedule 323.2: For mailings of 500 or more pieces properly prepared and presorted to five-digit destination ZIP Codes. Library 3 For mailings of 500 or more pieces properly prepared and First Pound. presorted to Bulk Mail Centers. Not presorted 4. 4 For Barcoded Discount, deduct $ lll per-piece.

PERIODICALS RATE SCHEDULE 421—REGULAR SUBCLASS 12

Rates Postage rate unit (cents)

Per Pound: Nonadvertising Portion ...... Pound. Advertising Portion: Delivery Office4 ...... Pound. SCF 5 ...... Pound. 1& ...... Pound. 3 ...... Pound. 4 ...... Pound. 5 ...... Pound. 6 ...... Pound. 7 ...... Pound. 8 ...... Pound. Science of Agriculture: Delivery Office ...... Pound. SCF ...... Pound. Zones 1&2 ...... Pound. Per Piece: Less Nonadvertising Factor6 ...... Required Preparation7 ...... Piece. Presorted to 3-digit ...... Piece. Presorted to 5-digit ...... Piece. Presorted to Carrier Route ...... Piece. Discounts: Prepared to Delivery Office4 ...... Piece. Prepared to SCF 5 ...... Piece. High Density8 ...... Piece. Saturation9 ...... Piece. Automation Discounts for Automation Compatible Mail 10 From Required: Prebarcoded letter size ...... Piece. Prebarcoded flats ...... Piece. From 3-Digit: Prebarcoded letter size ...... Piece. Prebarcoded flats ...... Piece. From 5-Digit: Prebarcoded letter size ...... Piece. Prebarcoded flats ...... Piece. 1 The rates in this schedule also apply to commingled nonsubscriber, non-requester, complimentary, and sample copies in excess of 10 percent allowance in regular-rate, non-profit, and classroom periodicals. 2 Rated do not apply to otherwise regular rate mail that qualifies for the Within County rates in Schedule 423.2. 3 Changes are computed by adding the appropriate per-piece charge to the sum of the nonadvertising portion and the advertising portion, as applicable. 4 Applies to carrier route (including high density and saturation) mail delivered within the delivery area of the originating post office. 5 Applies to Mail delivered with the SCF area of the originating SCF office. 6 For postage calculations, multiply the proportion of nonadvertising content by this factor and subtract from the applicable piece rate. 7 Mail not eligible for carrier-route, 5-digit or 3-digit rates.

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8 Applicable to high density mail, deducted from carrier route presort rate. 9 Applicable to saturation mail, deducted from carrier route presort rate. 10 For automation compatible mail meeting applicable Postal Service regulations.

PERIODICALS RATE SCHEDULE 423.2—WITHIN PERIODICALS RATE SCHEDULE 423.2—WITHIN COUNTY COUNTY—Continued [Full rates] [Full rates]

Rate Rate (cents) (cents)

Per Pound Prebarcoded Letter size General Prebarcoded Flat size Delivery Office 1 From 3-digit: Prebarcoded Letter size Per Piece Prebarcoded Flat size Required Presort From 5-digit: Presorted to 3-digit Prebarcoded Letter size Presorted to 5-digit Prebarcoded Flat size Carrier Route Presort 1 Applicable only to carrier route (including high density and saturation) presorted pieces to be delivered within the delivery Per Piece Discount area of the originating post office. Delivery Office 2 2 Applicable only to carrier presorted pieces to be delivered High Density (formerly 125 piece) 3 within the delivery area of the originating post office. 3 Saturation Applicable to high density mail, deducted from carrier route presort rate. Mailers also may qualify for this discount Automation Discounts for Automation Compatible on an alternative basis as provided in DMCS section 423.83. Mail 4 4 For automation compatible pieces meeting applicable From Required: Postal Service regulations.

PERIODICALS RATE SCHEDULE 423.3—PUBLICATIONS OF AUTHORIZED NONPROFIT ORGANIZATIONS 10 [Full rates]

1 Postage rate unit Rate (cents)

Per Pound: Nonadvertising portion ...... Pound. Advertising portion.9 Delivery Office 2 ...... Pound. SCF 3 ...... Pound. 1&2 ...... Pound. 3 ...... Pound. 4 ...... Pound. 5 ...... Pound. 6 ...... Pound. 7 ...... Pound. 8 ...... Pound. Per Piece: Less Nonadvertising Factor 4. Required Preparation 5 ...... Piece. Presorted to 3-digit ...... Piece. Presorted to 5-digit ...... Piece. Presorted to Carrier Route ...... Piece. Discounts: Prepared to Delivery Office 2 ...... Piece. Prepared to SCF 3 ...... Piece. High Density (formerly 125-Piece) 6 ...... Piece. Saturation 7 ...... Piece. Automation Discounts for Automation Compatible Mail 8 From Required: Prebarcoded letter size ...... Piece. Prebarcoded flats ...... Piece. From 3-Digit: Prebarcoded letter size ...... Piece. Prebarcoded flats ...... Piece. From 5-Digit: Prebarcoded letter size ...... Piece. Prebarcoded flats ...... Piece. 1 Charges are computed by adding the appropriate per-piece charge to the sum of the nonadvertising portion and the advertising portion, as applicable. 2 Applies to carrier route (including high density and saturation) mail delivered within the delivery area of the originating post office. 3 Applies to mail delivered within the SCF area of the originating SCF office. 4 For postage calculation, multiply the proportion of nonadvertising content by this factor and subtract from the applicable piece rate. 5 Mail not eligible for carrier route, 5-digit or 3-digit rates.

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6 Applicable to high density mail, deducted from carrier route presort rate. 7 Applicable to saturation mail, deducted from carrier route presort rate. 8 For automation compatible mail meeting applicable Postal Service regulations. 9 Not applicable to publications containing 10 percent or less advertising content. 10 If qualified, nonprofit publications may use Within County rates for applicable portions of a mailing.

PERIODICALS RATE SCHEDULE 423.4—CLASSROOM PUBLICATIONS 10 [Full rates]

1 Postage rate unit Rate (cents)

Per Pound: Nonadvertising Portion ...... Pound. Advertising Portion:9 Delivery Office 2 ...... Pound. SCF 3 ...... Pound. 1&2 ...... Pound. 3 ...... Pound. 4 ...... Pound. 5 ...... Pound. 6 ...... Pound. 7 ...... Pound. 8 ...... Pound. Per Piece: Less Nonadvertising Factor: 4. Required Preparation 5 ...... Piece. Presorted to 3-digit ...... Piece. Presorted to 5-digit ...... Piece. Presorted to Carrier Route ...... Piece. Discounts: Prepared to Delivery Office 2 ...... Piece. Prepared to SCF ...... Piece. High Density (formerly 125-Piece) 6 ...... Piece. Saturation 7 ...... Piece. Automation Discounts for Automation Compatible Mail 8 From Required: Prebarcoded Letter size ...... Piece. Prebarcoded Flats ...... Piece. From 3-Digit: Prebarcoded Letter size ...... Piece. Prebarcoded Flats ...... Piece. From 5-Digit Prebarcoded Letter Size ...... Piece. Prebarcoded Flats ...... Piece. 1 Charges are computed by adding the appropriate per-piece charge to the sum of the nonadvertising portion and the advertising portion, as applicable. 2 Applies to carrier route (including 125-piece walk sequence and saturation) mail delivered within the delivery area of the originating post office. 3 Applies to mail delivered within the SCF area of the originating SCF office. 4 For postage calculation, multiply the proportion of nonadvertising content by this factor and subtract from the applicable piece rate. 5 Mail not eligible for carrier route, 5-digit, or 3-digit rates. 6 For walk sequenced mail in batches of 125 pieces or more from carrier route presorted mail. 7 Applicable to saturation mail; deducted from carrier route presort rate. 8 For automation compatible mail meeting applicable Postal Service regulations. 9 Not applicable to publications containing 10 percent or less of advertising content. 10 If qualified, classroom publication may use Within County rates for applicable portions of a mailing.

FEE SCHEDULE 911—ADDRESS CORRECTIONS FEE SCHEDULE 912—Continued

Description Fee Fee

Per manual correction Minimum charge per list corrected Per automated correction Address Changes for Election Boards and Reg- istration Commissions: Per change of address FEE SCHEDULE 912 Corrections Associated With Arrangement of Ad- dress Cards in Carrier Delivery Sequence: Fee Per Correction

Zip Coding of Mailing Lists: Note: When rural routes have been consolidated or changed to Per thousand addresses another post office, no charge will be made for correction if Correction of Mailing Lists: the list contains only names of persons residing on the route Per submitted address or routes involved.

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FEE SCHEDULE 921—POST OFFICE BOXES AND CALLER SERVICE

Fee Group A B C D E

I. Semi-annual Box Fees 1: Box Size 2: 1 2 3 4 5 II. Semi-annual Caller Service Fees: Fee Group: A B C D III. Annual Call Number Reserva- tion Fee: (All applicable Fee Groups) 1 A customer ineligible for carrier delivery may obtain a post office box at Group E fees, subject to administrative decisions regarding customer’s proximity to post office. 2 Box Size 1=under 296 cubic inches; 2=296–499 cubic inches; 3=500–999 cubic inches; 4=1000–1999 cubic inches; 5=2000 cubic inches and over.

FEE SCHEDULE 931 1 BUSINESS REPLY MAIL FEE SCHEDULE 932—MERCHANDISE RETURN

Fee Fee

Active business reply advance deposit account: Per Transaction: Per piece: Shipper must have an advance deposit ac- Qualified count (see DMCS Schedule 1000) Nonletter-size, using reverse manifest (experimental) Nonletter-size, using weight averaging FEE SCHEDULE 933—ON-SITE METER SETTING (experimental) Other. Fee Payment of postage due charges if active business reply mail advance deposit account not First Meter: used: By appointment Per piece Unscheduled request Annual License and Accounting Fees: Additional meters: Accounting Fee for Advance Deposit Ac- Checking meter in or out of service (per count meter) Permit fee (with or without Advance Deposit Account) Fee Schedule 934 [Reserved] Monthly Fees for customers using a reverse manifest or weight averaging for nonletter-size business reply: FEE SCHEDULE 935—BULK PARCEL RETURN Nonletter-size, using reverse manifest (ex- SERVICE perimental) Nonletter-size, using weight averaging (ex- Fee perimental) Set-up/Qualification fee for customers using a re- Per Returned Piece verse manifest or weight averaging for nonletter-size business reply: Nonletter-size, using reverse manifest (ex- FEE SCHEDULE 941—CERTIFIED MAIL perimental) Nonletter-size, using weight averaging (ex- Fee perimental) (in addi- Description tion to 1 Experimental per piece, monthly, and set-up/qualification postage) fees are applicable only to participants selected by the Postal Service for the nonletter-size business reply mail experiment. Service (per mailpiece) The experimental fees expire June 7, 1999.

FEE SCHEDULE 942—REGISTERED MAIL

Declared value of article 1 Fee (in dollars) (in addition to postage) Handling charge

0 ...... None. 0.01 to 100 ...... None. 100.01 to 500 ...... None.

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FEE SCHEDULE 942—REGISTERED MAIL—Continued

Declared value of article 1 Fee (in dollars) (in addition to postage) Handling charge

500.01 to 1,000 ...... None. 1,000.01 to 2,000 ...... None. 2,000.01 to 3,000 ...... None. 3,000.01 to 4,000 ...... None. 4,000.01 to 5,000 ...... None. 5,000.01 to 6,000 ...... None. 6,000.01 to 7,000 ...... None. 7,000.01 to 8,000 ...... None. 8,000.01 to 9,000 ...... None. 9,000.01 to 10,000 ...... None. 10,000.01 to 11,000 ...... None. 11,000.01 to 12,000 ...... None. 12,000.01 to 13,000 ...... None. 13,000.01 to 14,000 ...... None. 14,000.01 to 15,000 ...... None. 15,000.01 to 16,000 ...... None. 16,000.01 to 17,000 ...... None. 17,000.01 to 18,000 ...... None. 18,000.01 to 19,000 ...... None. 19,000.01 to 20,000 ...... None. 20,000.01 to 21,000 ...... None. 21,000.01 to 22,000 ...... None. 22,000.01 to 23,000 ...... None. 23,000.01 to 24,000 ...... None. 24,000.01 to 25,000 ...... None. 25,000 to 1 million ...... Plus lll cents for each $1000 (or fraction thereof) over $25,000. Over $1 million to 15 million ...... Plus lll cents for each $1000 (or fraction thereof) over $1 million. Over 15 million ...... Plus amount determined by the Postal Service based on weight, space and value. 1 Articles with a declared value of more than $25,000 can be registered, but compensation for loss or damage is limited to $25,000.

FEE SCHEDULE 943—INSURANCE

Fee Coverage (in addition to postage)

Express Mail Insurance Document Reconstruction: $0.01 to $500 ...... no charge Mechandise: $0.01 to $500 ...... no charge 500.01 to 5000 ...... $lll for each $100 (or fraction thereof) over $500 in value. General Insurance 1 $0.01 to $50 ...... 50.01 to 100 ...... 100.01 to 5000 ...... $lll plus $lll for each $100 (or fraction thereof) over $100 in coverage. 1 For bulk insurance, deduct $lll per piece.

FEE SCHEDULE 944—COLLECT ON DELIVERY FEE SCHEDULE 944—COLLECT ON DELIVERY— Continued Fee (in addition to Fee postage) (in addition to postage) Amount to be collected, or Insurance Coverage Desired: 500.01 to 600 $0.01 to $50 50.01 to 100 Notice of nondelivery of COD 100.01 to 200 Alteration of COD charges or designation of new 200.01 to 300 addressee 300.01 to 400 Registered COD 400.01 to 500

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FEE SCHEDULE 945—RETURN RECEIPTS FEE SCHEDULE 951—PARCEL AIR LIFT

Fee Fee Description (in addi- (in addition to tion to postage) Parcel Post Receipt Issued at Time of Mail: 1 postage) Items other than Merchandise Up to 2 pounds Merchandise (without another special service) Over 2 up to 3 pounds Receipt Issued after Mailing: 2 Over 3 up to 4 pounds Over 4 pounds 1 This receipt shows the signature of the person to whom the mailpiece was delivered, the date of delivery and the delivery address, if such address is different from the address EE CHEDULE PECIAL ANDLING on the mailpiece. F S 952—S H 2 This receipt shows to whom the mailpiece was delivered and the date of delivery. Fee (in addition to FEE SCHEDULE 946—RESTRICTED DELIVERY postage)

Fee Not more than 10 pounds (in addi- More than 10 pounds tion to postage) FEE SCHEDULE 961—STAMPED ENVELOPES Per Piece Fee (in addi- FEE SCHEDULE 947—CERTIFICATE OF MAILING Description tion to postage) Fee (in addi- Single Sale tion to postage) Single Sale Hologram PLAIN BULK (500) #63⁄4 size: Individual Pieces: Regular Original certificate of mailing for listed pieces Window of all classes of ordinary mail (per piece) PRINTED BULK (500) #63⁄4 size: Three or more pieces individually listed in a Regular firm mailing book or an approved customer Window provided manifest (per piece) BANDED (500) #63⁄4 size Each additional copy of original certificate of PLAIN BULK (500) size >#63⁄4 through #10: 1 mailing or original mailing receipt for reg- Regular istered, insured, certified, and COD mail Window (each copy) Hologram Bulk Pieces: PRINTED BULK (500) size >#63⁄4 through #10: Identical pieces of First-Class and Regular, Enhanced Carrier Route, Nonprofit, and Regular Nonprofit Enhanced Carrier Route Stand- Window ard Mail paid with ordinary stamps, Savings Bond precanceled stamps, or meter stamps are Hologram subject to the following fees: BANDED (500) size >#63⁄4 size through #10 Up to 1,000 pieces (one certificate for Multi-Color Printing (500): total number) #63⁄4 size Each additional 1,000 pieces or fraction #10 size 1 Duplicate copy Printing Charge per 500 Envelopes (for each type of printed envelope): Minimum Order (500 envelopes) EE CHEDULE ELIVERY ONFIRMATION F S 948—D C Order for 1,000 or more envelopes Double Window (500) size >#63⁄4 through #10 1 Fee Household (50): Service (in addition to Size #63⁄4: postage) Regular Window Used in Conjunction with Priority Mail: Size >#63⁄4 through #10: Electronic Regular Manual Window Used in Conjunction with Parcel Post, Bound Hologram Printed Matter, Library, and Special Standard Mail: 1 Fee for precancelled envelopes is the same. Electronic Manual

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FEE SCHEDULE 962—STAMPED CARDS applicable to proceedings on requests subject to this subpart. Fee (in addi- Description tion to § 3001.72 Filing of formal requests. postage) Whenever the Postal Service deter- Stamped Card mines to request that the Commission Double Stamped Card issue an advisory opinion on a proposed change in the nature of postal services FEE SCHEDULE 971—MONEY ORDERS subject to this subpart, the Postal Service shall file with the Commission Fee a formal request for such an opinion in Domestic: accordance with the requirements of $0.01 to $700 §§ 3001.9 to 3001.11 and 3001.74. Such re- APO–FPO: quest shall be filed not less than 90 $0.01 to $700 days in advance of the date on which Inquiry Fee, which includes the issuance of copy of a paid money order the Postal Service proposes to make effective the change in the nature of postal services involved. Within 5 days SCHEDULE 1000 after the Postal Service has filed a for- Fee mal request for a recommended decision in accordance with this sub- First-Class Presorted Mailing section, the Secretary shall lodge a no- Periodicals: A. Original Entry tice thereof with the Director of the B. Additional Entry Federal Register for publication in the C. Re-entry FEDERAL REGISTER. D. Registration for News Agents Regular, Enhanced Carrier Route, Nonprofit, and [38 FR 4330, Feb. 13, 1973, as amended at 51 Nonprofit Enhanced Carrier Route Standard FR 8827, Mar. 14, 1986] Mail Bulk Mailing Parcel Post: Destination BMC, SCF, and DDU § 3001.73 Filing of prepared direct tes- Special and Library Standard Mail Presorted Mailing timony. Authorization to Use Permit Imprint Simultaneously with the filing of a Merchandise Return (per facility receiving mer- formal request for an advisory opinion chandise return labels) Business Reply Mail Permit (see Fee Schedule under this subpart, the Postal Service 931) shall file all of the prepared direct evi- Authorization to Use Bulk Parcel Return Service dence upon which it proposes to rely in the proceeding on the record before the [61 FR 32657, June 25, 1996; 61 FR 37316, July Commission to establish that the pro- 17, 1996, as amended at 61 FR 55100, 55102, Oct. posed change in the nature of postal 24, 1996; 62 FR 35425, 35426, July 1, 1997; 63 FR services is in accordance with and con- 35140, June 29, 1998; 63 FR 39030, July 21, 1998; forms to the policies of the Act. Such 64 FR 1392, Jan. 8, 1999; 64 FR 4493, Jan. 28, prepared direct evidence shall be in the 1999] form of prepared written testimony and documentary exhibits which shall Subpart D—Rules Applicable to be filed in accordance with § 3001.31. Requests for Changes in the Nature of Postal Services § 3001.74 Contents of formal requests. (a) General requirements. Each formal § 3001.71 Applicability. request filed under this subpart shall The rules in this subpart govern the include such information and data and procedure with regard to proposals of such statements of reasons and basis as the Postal Service pursuant to section are necessary and appropriate to fully 3661 of the Act requesting from the inform the Commission and the parties Commission an advisory opinion on of the nature, scope, significance and changes in the nature of postal services impact of the proposed change in the which will generally affect service on a nature of postal services and to show nationwide or substantially nationwide that such change in the nature of post- basis. The Rules of General Applica- al service is in accordance with and bility in subpart A of this part are also conforms to the policies established

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under the Act. Detailed data and infor- § 3001.82 Scope and nature of com- mation and statements of reasons or plaints. basis set forth in the Postal Service’s Interested parties who believe the prepared direct evidence may be relied Postal Service is charging rates which upon for purposes of the formal request do not conform to the policies set out without restatement therein by ref- in the Act, or who believe that they are erence in the request to the portions of not receiving postal service in accord- the prepared direct evidence relied ance with the policies of such title, upon. may file and serve a written complaint (b) Specific information. Subject to the with the Commission in the form and right of the Commission to request ad- manner required by §§ 3001.9 to 3001.12. ditional information, each formal re- The Commission shall entertain only quest shall include the following: those complaints which clearly raise (1) A detailed statement of the an issue concerning whether or not present nature of the postal services rates or services contravene the poli- proposed to be changed and the change cies of the Act; thus, complaints rais- proposed; ing a question as to whether the Postal Service has properly applied its exist- (2) The proposed effective date for ing rates and fees or mail classification the proposed change in the nature of schedule to a particular mail user or postal services; with regard to an individual, localized, (3) A full and complete statement of or temporary service issue not on a the reasons and basis for the Postal substantially nationwide basis shall Service’s determination that the pro- generally not be considered as properly posed change in the nature of postal raising a matter of policy to be consid- services is in accordance with and con- ered by the Commission. The Commis- forms to the policies of the Act. sion shall, in the exercise of its discretion, decline to entertain a complaint § 3001.75 Service by the Postal Service. during the period the complainant is Immediately after the issuance of an continuing to pursue the general sub- order or orders by the Commission des- ject matter of the complaint before an ignating an officer of the Commission Administrative Law Judge or the judi- to represent the interests of the gen- cial officer of the Postal Service. eral public in a proceeding before the [36 FR 396, Jan. 12, 1971, as amended at 37 FR Commission under this subpart, the 25027, Nov. 25, 1972] Postal Service shall serve copies of its formal request for an advisory opinion § 3001.83 Contents of complaints. and its prepared direct evidence upon Subject to the right of the Commis- such officer and the intervenors as pro- sion to require the furnishing of addi- vided by § 3001.12. Service shall also be tional information, each complaint made on persons who are limited par- shall include the following informa- ticipators. tion: (a) The full name and address of the [38 FR 3511, Feb. 7, 1973, as amended at 51 FR complainant(s); 8827, Mar. 14, 1986; 58 FR 38977, July 21, 1993] (b) A full and complete statement of the grounds for such complaint, includ- Subpart E—Rules Applicable to ing specific reference to the postal Rate and Service Complaints rates or services involved and the policies to which it is claimed they do not § 3001.81 Applicability. conform; The rules in this subpart govern the (c) A list or description of all persons procedure with regard to rate and serv- or classes of persons known or believed to be similarly affected by the rates or ice complaints filed under section 3662 services involved in the complaint; of the Act. The Rules of General Appli- (d) A statement of the specific relief cability in subpart A of this part are or redress requested; also applicable to proceedings on such (e) Copies of all correspondence or complaints. written communications between the

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complainant, his/her agent, representa- employees as the Chairman shall des- tive, or attorney, and the Postal Serv- ignate, may use correspondence, con- ice or any officer, employee or instru- ferences, or other appropriate informal mentality thereof, and which relates to inquiry methods to define the issues, the subject matter of the complaint; further the exchange of information provided, however, that any such docu- and explanations between the Postal ments which are a part of a public file Service and the complainant, and fa- in any proceeding before an Adminis- cilitate negotiated settlement. On re- trative Law Judge or the Judicial Offi- ceiving a service complaint, the Com- cer of the Postal Service need not be mission will give a notice of whether or included if the complaint states the not it intends to use informal proce- title, docket reference, nature, current dures, In either case, it will give the status, and disposition of such pro- Postal Service such additional time to ceeding. answer the complaint as is just and ap- [36 FR 396, Jan. 12, 1971, as amended at 37 FR propriate. After expeditiously con- 25027, Nov. 25, 1972; 58 FR 38976, 38977, July 21, ducting informal inquiries, it will issue 1993] an order summarizing the results. All correspondence and other documents § 3001.84 Answers by the Postal Serv- issued by or lodged with the Commis- ice. sion during informal inquiries will be Within 30 days after the filing of a part of the public record of the case. complaint with the Commission (unless (b) It shall be the general policy and more time is allowed under § 3001.85(a)), practice of the Commission to encour- the Postal Service shall file and serve age the resolution and settlement of an answer. Such answer shall be in the complaints by informal procedures, inform and manner required by §§ 3001.9 cluding correspondence, conferences to 3001.12, and shall include the fol- between the parties, and the conduct of lowing: proceedings off the record with the (a) Specific admission, denial or ex- consent of the parties. planation of each fact alleged in the complaint or, if the Postal Service is [36 FR 396, Jan. 12, 1971, as amended at 49 FR without knowledge thereof, a state- 6490, Feb. 22, 1984; 51 FR 8827, Mar. 14, 1986] ment to that effect. Each fact alleged in a complaint not thus specifically an- § 3001.86 Proceedings on the record. swered shall be deemed to have been If a complaint is not resolved or set- admitted; tled under informal procedures, the (b) A statement as to the position of Commission shall consider whether or the Postal Service on the allegations in not, in its discretion, a proceeding on the complaint that the rates or service the record with an opportunity for involved are not in accord with the hearing should be held on such com- policies of the Act, and the facts and plaint. If the Commission has reason to reasons in support of such position; believe that the complaint may be jus- (c) The position of the Postal Serv- tified and that a hearing may other- ice on the specific relief or redress re- wise be appropriate in the exercise of quested by the complainant, the dis- its discretion, the Commission shall position of the complaint rec- issue a notice of proceeding pursuant ommended by the Postal Service, in- to § 3001.17, and further formal pro- cluding whether or not a hearing ceedings shall then be held as appro- should be held, and a statement of any priate under the Commission’s rules in facts and reasons in support of such po- subpart A of this part. sition. [36 FR 396, Jan. 12, 1971, as amended at 49 FR § 3001.87 Commission determinations. 6490, Feb. 22, 1984; 51 FR 8827, Mar. 14, 1986] If the Commission determines, after the completion of proceedings which § 3001.85 Informal procedures. provide an opportunity for hearing, (a) In case of a complaint alleging that a complaint is justified in whole service not in accordance with the poli- or in part, the Commission shall issue cies of the Act, the Commission, acting a recommended decision to the Postal through such appropriate Commission Service if the complaint involves a

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matter of rates and fees or mail classi- ability of the intervenor to produce it. fication and shall render a public re- If it is alleged that such information is port if the complaint involves other representative of a significant segment matters. The Commission shall notify of a rate-category of mail or of the the complainant, the Postal Service, users thereof it should be accompanied and any other parties in each com- by a demonstration to that effect. plaint proceeding of the action taken (a) Description of intervenor. A state- or the final disposition of the comment as to the nature of the business plaint. and operations of the intervenor. If the intervenor is an association, the names Subpart F—Rules Applicable to of the members of the association and the Filing of Testimony by In- a general description of their business tervenors and operations. (b) Usage of postal services. An identi- § 3001.91 Applicability and general pol- fication of the extent to and method by icy. which the postal services are used including an estimated itemization of (a) The rules in this subpart identify the postage cost by class and rate. those areas in which intervenors in (c) Intervenor’s mailing operations. A rate and classification proceedings description of the mailing and handling could assist the Commission. Interve- operations of the intervenor for items nors are free to file any relevant and which are to pass through the Postal material evidence which is not unduly Service. Descriptions of premailing op- repetitious or cumulative. erations should include the details as (b) Intervenors are invited to submit to any special arrangements with the the information specified in § 3001.92 (a) Postal Service. Also, a statement as to through (1) on a voluntary basis as part the total mail handling costs exclusive of their own direct cases. The Commis- of Postal Service payments including a sion’s request that intervenors volun- breakdown of such costs by, and identi- tarily file such information is not in fication of, the functions for which the derogation of the Commission’s and the costs are incurred. presiding officer’s authority, pursuant (d) Intervenor’s postage costs. A state- to §§ 3001.23 through 3001.28, respecting ment of the relative importance of the provision of such or other informa- postage costs to other expenses. An es- tion. Intervenors, particularly those timated itemization of postage costs by making contentions under section class of mail as related to total oper- 3622(b)(4) of the Act, shall be aware ating expenses. If more than one major that their failure to provide relevant product is affected by postage costs, and material information will be taken data should be presented for each, e.g., into account in determining the weight each periodical of a firm in the pub- which the Commission accords to their lishing business. arguments and evidence. (e) Financial impact of rate or classi- (c) All evidence shall be filed in ac- fication changes. An estimate of the fi- cordance with § 3001.31. The rules of nancial impact of the proposed rate or general applicability of subpart A of classification changes on the inter- this part are also applicable to filings venor, or aggregate data for members subject to this subpart. of mail user associations, together [38 FR 7536, Mar. 22, 1973, as amended at 51 with details of the basis of estimates FR 8827, Mar. 14, 1986] and supporting data. (f) Absorption/avoidance of rate § 3001.92 Submissions by intervenors. changes. An analysis as to the ability In addition to any other direct testi- or inability of the intervenor to absorb, mony submitted by an intervenor in a avoid, or pass on postal rate changes, rate or classification proceeding, and to customer groups (or advertisers or in addition to further requests for in- sponsoring organizations, if any). The formation by the Commission, the analysis should include an analysis of Commission requests that the fol- the intervenor’s customers’ demand for lowing information be submitted where the product of the intervenor’s indus- applicable and where it is within the try.

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(g) Demand for postal services. An indi- pact on volume resulting from the pro- cation of the demand of the interve- posed postal increases should be in- nor’s industry for postal services included. cluding an estimate of the elasticity of (k) User studies of Postal Service. Any such demand. studies of the Postal Service’s costs, (h) Competitor operations. If the inter- revenues, or operations which would be venor is a competitor of the Postal of help to the Commission in evalu- Service, a definition of the areas of ating the merits of the Postal Service’s competition between the intervenor request. and the Postal Service and a dem- (l) Workpapers. (1) Whenever an inter- onstration of the intervenor’s ability venor presents evidence it shall accom- or inability to meet postal competi- pany such evidence with seven sets of tion. Include a brief historical descrip- workpapers, five for use by the Com- tion of the company’s operations dur- mission staff and two which shall be ing the past 5 years, showing growth in available for use by the public at the each major segment of the company’s Commission offices. Two additional business and a statement of the cur- sets shall be delivered to counsel for rent rates and all conditions of service the U.S. Postal Service. applicable to the portion of the intervenor’s operations which is affected by (2) Workpapers shall contain the data comparable service of the Postal Serv- and analyses underlying the submis- ice. The statement should include data sions, including: on the costs of the services which the (i) A description of the methods used intervenor contends are competitive in collecting, summarizing and expand- with services of the Postal Service. The ing the data and a clear indication of statement of costs should identify by how the workpapers relate to the var- character and amount those attributed ious submissions; to the competitive service and the in- (ii) Summaries of sample data and tervenor’s rationale (i.e., cost and pric- other data used; and ing hypothesis) for such attribution. (iii) Any special studies made. (i) Impact of rate changes on users’ sup- (3) Workpapers shall be neat and leg- pliers. If the intervenor is a manufac- ible. turer or supplier of goods or services (4) Workpapers shall include cita- provided to users of the Postal Service, tions sufficient to enable a reviewer to a statement of the impact on expenses trace any number used but not derived and revenues resulting from postage in the associated testimony back to changes, together with statistical or published documents or, if not obtained other accounting data and the reasons from published documents, to primary supporting such statement. data sources. Citations shall be suffi- (j) Statement of revenues, volumes, ciently detailed to enable a reviewer to costs, and profits. For all intervenors, a identify and locate the specific data certified statement of the total reve- used, e.g., by reference to document, nues, costs, and profits for each of the page, line, column, etc. With the excep- last 5 years together with an estimate tion of workpapers that follow a stand- of the impact of the proposed postal ardized and repetitive format, the re- changes on total revenues, costs, and quired citations themselves, or a cross- profits. Also the intervenor’s volume of reference to a specific page, line, and mail passing through the Postal Serv- column of a table of citations, shall ap- ice (by class and subclass) and the com- pear on each page of each workpaper. parable volume of traffic moving by Workpapers that follow a standardized competitive services (or the volume of and repetitive format shall include the services performed in competition with citations described in this paragraph the Postal Service, or the volume of for a sufficient number of representa- materials manufactured for or supplied tive examples to enable a reviewer to to the Postal Service or users of the trace numbers directly or by analogy. Postal Service). Volume data should be presented for each of the 5 years for [38 FR 7536, Mar. 22, 1973, as amended at 50 which total revenues, costs, and profits FR 43393, Oct. 25, 1985; 51 FR 8827, Mar. 14, are reported. An estimate of the im- 1986]

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Subpart G—Rules Applicable to (5) Civil Service Retirement Fund the Filing of Periodic Reports Deficit Report (2 weeks after release of by the U.S. Postal Service the Annual Report of the Postmaster General). § 3001.101 Applicability and general (6) Worker’s Compensation Report in- policy. cluding summary workpapers (2 weeks The rules in this subpart identify re- after release of the Annual Report of ports 1 financial statements and cost the Postmaster General). analyses which the Postal Service will (7) Annual Report of the Postmaster file with the Secretary of the Commis- General. sion on a periodic basis. (8) Congressional Budget Submission including workpapers. The Postal Serv- [41 FR 47438, Oct. 29, 1976, as amended at 51 ice will also file concurrently Sum- FR 24531, July 7, 1986; 58 FR 38977, July 21, mary Tables SE 1, 2 and 6 (coincide 1993] with submission to Congress). § 3001.102 Filing of reports. (9) Audit Adjustment Vouchers, if any. Each report listed in this section (10) Billing determinants, at the level shall be filed with the Secretary of the of detail employed in the most recent Commission within two weeks of its formal request for a change in rates or presentation for use by postal manage- fees, except that the filing of billing ment unless otherwise noted. The re- determinant information for Express ports and information required to be Mail, Priority Mail, and parcel post provided by this subpart need not in- pursuant to this section may be de- clude matters exempt from disclosure layed for up to one year. by law. Whenever a specific source is (b) Quarterly reports. The folllowing cited in this section, that citation in- information will be filed by the Postal cludes any successor or substituted Service quarterly: source. (a) Annual reports. The following in- (1) Revenue, Pieces and Weight by formation will be filed by the Postal Classes of Mail and Special Services. Service annually. (2) Origin/Destination Information (1) Cost and Revenue Analysis Report Report National Service Index. which will identify each change in at- (3) Investment Income Statements tribution assumptions from the prior (60 days from the close of the Quarter, year’s report. The Postal Service will except for the last report for the fiscal file concurrently portions of LIOCATT year—2 weeks after release of the An- used in the report, transportation nual Report of the Postmaster Gen- workpapers 31 and 57 and, if changed eral). from the prior year, data collection (c) Accounting period reports. The fol- forms and corresponding training hand- lowing information will be filed by the books. Postal Service each accounting period: (2) Cost Segments and Components. (1) Cash Flow Statement (60 days (3) City Delivery Information includ- from the close of the Accounting Pe- ing the number of routes by type, the riod, except for the last report for the number of possible deliveries by type, fiscal year—2 weeks after release of the the number of collection boxes and Annual Report of the Postmaster Gen- businesses served (120 days from the eral). close of the fiscal year). (2) Summary Financial and Oper- (4) Rural Carrier Information includ- ating Report. ing the number of routes by type and (3) National Payroll Hours Summary. miles, stops, boxes served and mail (4) National Consolidated Trial Bal- pieces by route type (120 days from the ances and the Revenue and Expense close of the fiscal year). Summary. (d) Miscellaneous reports. The following information will be filed by the 1 It is realized that some items, character- ized as ‘‘reports,’’ are not reports in the true Postal Service as updated: sense of the word since they are not pub- (1) Before/After Pay Increase Re- lished and heretofore have only been in- ports. tended for internal use. (2) Before/After COLA Cost Report.

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(3) A master list of publications and (7) Identification of costs that are ex- handbooks including those related to clusive to international mail. internal information systems or data (8) The cost of joint ventures with collection procedures (when changed). other postal administrations. (4) Notice of Changes in Data Report- (9) International billing deter- ing Systems (90 days before imple- minants. menting changes in data reporting sys- (10) The data for Direct Entry sepa- tems). rated between inbound and outbound as [51 FR 24531, July 7, 1986, as amended at 54 in the Postal Service’s response to FR 35495, Aug. 28, 1989; 58 FR 38977, July 21, Item 1 of order no. 1246. 1993] (11) The attributable costs for ValuePost/Canada developed in accord- § 3001.103 Filing of reports required by 39 U.S.C. 3663(b). ance with the procedure described in the Postal Service’s response to Item 2 Each report listed in this section of order no. 1251, or any alternative shall be filed with the Secretary of the procedure deemed appropriate as a Commission on or before March 15th of basis for setting the rates for each year unless a later date is speci- ValuePost/Canada. Costs for fied, and shall cover the most recent ValuePost/Canada should be separated full fiscal year. Information contained between publications and all other in these reports that is considered to be commercially sensitive should be printed matter. identified as such, and will not be pub- (12) Revenues and volumes for Value licly disclosed except as required by Post/Canada separated between publi- applicable law. Specific sources cited cations and all other printed matter. in this section should be understood to (f) Handbooks pertaining to the col- include any successor or substituted lection of volume and revenue data source. (MIDAS, SIRVO, SIRVI, Other) if they (a) The International Cost and Rev- were revised or replaced since they enue Analysis—PRC Version. were last submitted. (b) The International Cost and Rev- (g) International CRA manual input, enue Analysis—USPS Version, by May A, B, C, and factor reports on a CD– 15. ROM. (c) The Cost and Revenue Analysis (h) A hard copy of the International Report—PRC Version. If an unaudited CRA manual input and the C report version is provided on March 15, pro- International CRA manual input, A, B, vide an audited version no later than C, and factor reports on a CD–ROM. May 15. The audited version shall in- (i) Cost Segment 3 CRA Worksheets clude a statement describing all ad- and all supporting files, including the justments that affect international MODS-Based Costing Studies—PRC mail. Version. Include all databases, SAS (d) The Cost Segments and Compo- and other programs, and output work- nents Report—PRC Version. If an sheets. unaudited version is provided on March (j) Cost Segment 7 CRA Worksheets 15, provide an audited version no later and all supporting files. than May 15. The audited version shall (k) The number of weighted tallies by include a statement describing all adjustments that affect international international service separately for mail. clerks and mailhandlers, and for city (e) Documentation and workpapers delivery carriers in-office; clerk and for the ICRA, including those related mailhandler tallies should be further to: separated for mail processing, window (1) Terminal dues. service, and all other. (2) Air conveyance dues. (l) Coefficients of variation for: (3) Transit charges. (1) IOCS clerk and mailhandler tal- (4) Imbalance charges. lies by mail processing, window serv- (5) Inward land charges. ice, and all other. (6) Description of cost allocation pro- (2) IOCS city delivery carriers in-of- cedures. fice.

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(3) TRACS for purchased transpor- § 3001.111 Initiation of review pro- tation by international, air, railroad, ceedings. and other. (a) Petition for review. Review of a de- (4) Outbound volume by international termination of the Postal Service to service. close or consolidate a post office shall (5) Inbound volume by international be obtained by filing a petition for re- service. view with the Secretary of this Com- (m) The percentage of household and mission. Such petition must be re- the percentage of non-household mail ceived by the Commission within 30 for each outbound mail service. days after the Service has made avail- (n) The percentage of single-piece able to persons served by that post of- mail and bulk mail for each outbound fice the written determination to close service. or consolidate required by 39 U.S.C. 404(b) (3) through (4). The petition shall [65 FR 10021, Feb. 25, 2000] specify the parties seeking review, all of whom must be persons served by the Subpart H—Rules Applicable to post office proposed to be closed or Appeals of Postal Service De- consolidated and shall identify the terminations To Close or Con- Postal Service as respondent. The Com- solidate Post Offices mission encourages parties seeking review to attach a copy of the Postal Service written determination, as the SOURCE: 42 FR 10993, Feb. 25, 1977, unless otherwise noted. appeal process is thereby expedited. If two or more persons are entitled to pe- § 3001.110 Applicability. tition for review of the same determination and their interests are such Rules in this subpart govern the pro- as to make joinder practicable, they cedure regarding the appeal of a deter- may file a joint petition for review and mination of the Postal Service to close may thereafter proceed as a single pe- or consolidate a post office by patrons titioner. of the post office in question. Pursuant (b) Intervention. A person served by to section 404(b) of the Act any deci- the post office to be closed or consoli- sion to close or consolidate a post of- dated pursuant to the Postal Service fice must be preceded by 60 days notice written determination under review to persons served by such post office, who desires to intervene in the pro- the opportunity for such persons to ceeding, or any other interested per- present their views, and a written de- son, or any counsel, agent or other per- termination based upon consideration son authorized or recognized by the of each of the factors listed in section Postal Service as such interested per- 404(b)(2) of the Act. This notice must son’s representative or the representa- include a provision stating that, pursu- tive of such interested person’s recog- ant to Pub. L. 94–421, a final Postal nized group, such as Postmasters, shall Service determination to close or con- file with the Secretary of the Commis- solidate a post office may be appealed sion and serve upon all parties a notice to the Postal Rate Commission at 1333 of intervention in a form prescribed by H Street, NW., Suite 300, Washington, § 3001.20. The notice shall contain a DC 20268–0001, within 30 days after the concise statement of the interest of the issuance of a written determination by moving party and the grounds upon the Postal Service. The rules of general which intervention is sought. A notice applicability in subpart A of this part, of intervention shall be filed within 25 which do not relate solely to evi- days of the date on which the notice dentiary proceedings on the record, are for review is filed. The provisions of also applicable to proceedings subject § 3001.20 (c) through (f) of Subpart A of to this subpart. this part shall apply to notices of intervention in review proceedings. [36 FR 396, Jan. 12, 1971, as amended at 58 FR 38977, July 21, 1993] [48 FR 33707, July 25, 1983, as amended at 58 FR 38977, July 21, 1993]

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§ 3001.112 The record on review. filed with the Secretary of the Com- mission. The written determination sought to be reviewed or enforced, the conclu- (b) Answer and filing of the relevant sions and findings upon which it must record by the U.S. Postal Service. Within be based under section 404(b)(3) of the 10 days after the application for sus- Act, the notices to local patrons and pension is filed, the Postal Service the evidence contained in the entire shall file with the Secretary of the administrative record before the Postal Commission and serve on the peti- Service shall constitute the record on tioners an answer to the application review. The record shall contain all supported by affidavits or other sworn evidence considered by the Postal statements or copies thereof. The Post- Service in making its determination al Service, within 10 days from the date and shall contain no evidence not pre- of filing of the application, shall file viously considered by the Postal Serv- with the Secretary such parts of the ice. record as are relevant to the relief sought. § 3001.113 Filing of the record. (a) Time for filing of the record by the [36 FR 396, Jan. 12, 1971, as amended at 58 FR 38977, July 21, 1993] Postal Service. The Postal Service shall file the record with the Secretary of § 3001.115 Participant statement or the Commission within 15 days after brief. the date on which the petition for review is filed with the Commission. The (a) Participant statement. Upon the fil- Commission may shorten or extend the ing of the petition for review of a deci- time prescribed above. The Secretary sion to close or consolidate a post of- shall give notice to all parties of the fice, the Secretary shall furnish the pe- date on which the record is filed. titioner with a copy of PRC Form 61, a (b) Composition of the filing. The Post- form designed to permit the appellant al Service may file the entire record or to make a concise statement of his/her such parts thereof as the parties may arguments in support of the petition designate by stipulation filed with the and the instructions regarding its use. Postal Service. The original papers in In addition to eliciting this informa- the Postal Service proceeding or cer- tion, the instructions for Form 61 shall tified copies thereof may be filed. All provide: (1) Notification that, if the ap- parts of the record retained by the pellant prefers, he or she may file a Postal Service shall be a part of the brief as described in paragraph (b) of record on review for all purposes. this section presenting the arguments, in lieu of completing PRC Form 61; (2) § 3001.114 Suspension pending review. a concise explanation of the purpose of (a) Application. Application for sus- the form; and (3) notification that the pension of a determination of the Post- completed form, or a brief as described al Service to close or consolidate any in paragraph (b) of this section, in lieu post office pending the outcome of an thereof, must be filed with the Com- appeal to the Postal Rate Commission mission not more than 35 days fol- shall be made at the time of the filing lowing the date of filing of the petition of a petition for review or of the filing (which date shall be set forth, as it ap- of a notice of intervention in an extant pears in the Commission’s records). appellate proceeding. The application (b) The initial shall show the reasons for the relief re- Appellant’s initial brief. quested and the facts relied upon, and brief of the appellant shall be filed if the facts are subject to dispute the with the Secretary of the Commission application shall be supported by affi- and served on all parties 35 days after davits or other sworn statements or the filing of the petition for review of copies thereof. The applicant must be a a decision to close or consolidate a post person served by the affected post of- office. The brief will be limited in fice. Immediate notice of the applica- length to 30 pages, typewritten and tion shall be given to all parties to the double spaced, and shall include the proceeding. The application shall be following in the order indicated:

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(1) A subject index with page ref- brief shall follow the format detailed in erences, and a list of all cases and au- paragraph (b) of this section. thorities relied upon, arranged alpha- [42 FR 10993, Feb. 25, 1977, as amended at 48 betically, with references to the pages FR 33707, July 25, 1983; 58 FR 38976, 38977, where the citation appears (which need July 21, 1993] not be included in the page count); (2) A concise statement of the case § 3001.116 Oral argument. from the viewpoint of the filing partic- Oral argument will be held in these ipant; appeal cases only when a party has (3) A clear, concise and definitive made a showing that, owing to unusual statement of the position of the author circumstances, oral argument is a nec- as to the merits of the determination essary addition to the written filings. under review; Any request for oral argument shall be filed within 7 days of the date on which (4) A discussion of the evidence, rea- reply briefs are due. If a request for sons, and authorities relied upon with oral argument is granted, it will be exact references to the record and the held at the Postal Rate Commission’s authorities; and offices at 1333 H Street, NW., Suite 300, (5) Proposed holding with appropriate Washington, DC 20268–0001. references to the record or the prior [48 FR 33708, July 25, 1983, as amended at 58 discussion of the evidence and authori- FR 38977, July 21, 1993] ties relied upon, and to the appellate criteria of section 404(b)(5) of the Act. § 3001.117 Posting of documents by Briefs before the Commission shall be Postal Service for inspection by affected postal patrons. completely self-contained and shall not incorporate by reference any portion of In all proceedings conducted pursu- any other brief, pleading or document. ant to this subpart H, the Postal Serv- Testimony and exhibits shall not be ice shall cause to be displayed prominently, in the post office or offices quoted or included in briefs except for serving the patrons affected by the de- short excerpts pertinent to the argu- termination to close or consolidate a ment presented. post office which is under review, a (c) Answering brief of the Postal Serv- copy of the service list and all plead- ice. The answering brief of the Postal ings, notices, orders, briefs and opin- Service shall be filed 20 days after the ions filed in such proceedings. Failure date designated for filing of the appel- by the Postal Service to display promi- lant’s brief and shall follow the format nently any such document shall be detailed in paragraph (b) of this sec- deemed sufficient reason to suspend tion. the effectiveness of the Postal Service (d) Reply by appellant. The appellant determination under review until final may file a written response to the brief disposition of the appeal. of the Postal Service 15 days after the [42 FR 10993, Feb. 25, 1977. Redesignated at 48 date designated for filing of that brief, FR 33708, July 25, 1983] which shall be strictly limited in content to reply to arguments made by the Subpart I—Rules for Expedited Re- Postal Service. If presented as a brief, view to Allow Market Tests of such reply brief shall conform to the Proposed Mail Classification format detailed in paragraph (b) of this Changes section. (e) Intervenor statements or briefs. An SOURCE: 66 FR 54441, Oct. 29, 2001, unless intervenor shall file its brief within the otherwise noted. time allowed for initial and reply, or answering, briefs, as appropriate. The § 3001.161 Applicability. Secretary shall furnish to each inter- (a) This section and §§ 3001.162 venor a copy of PRC Form 61 as soon as through 3001.166 apply in cases in which intervenor status is granted. If the in- the Postal Service requests a rec- tervenor chooses to file a brief, the ommended decision pursuant to section 3623 preceded by testing in the market

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in order to develop information nec- plicable criteria of the Act. Each for- essary to support a permanent change. mal request shall also include the fol- The requirements and procedures speci- lowing particular information: fied in these sections apply exclusively (a) A description of the services to be to the Commission’s determination to provided in the market test, and the recommend in favor of or against a relationship between the services to be market test proposed by the Postal provided and the permanent change or Service, and do not supersede any changes in the mail classification other rules applicable to the Postal schedule requested by the Postal Serv- Service’s request for recommendation ice; of a permanent change in mail classi- (b) A statement of each rate or fee to fication. In administering this subpart, be charged for each service to be pro- it shall be the policy of the Commis- vided during the market test, together sion to recommend market tests that with all information relied upon to es- are reasonably calculated to produce tablish consistency of those rates and information needed to support a per- fees with the factors specified in sec- manent change in mail classification, tion 3622(b); and that are reasonably limited in (c) A description of the number and scope, scale, duration, and potential extent of the service areas in which the adverse impact. Except in extraor- market test will be conducted, includ- dinary circumstances and for good ing the number and type of postal fa- cause shown, the Commission shall not cilities which will be used; recommend market tests of more than (d) A statement of the planned dura- one year in duration; however, this tion of the market test; limitation is not intended to bar the (e) Proposed Domestic Mail Classi- Postal Service from conducting more fication Schedule provisions which in- than one market test in support of a corporate the information required in potential permanent change in mail paragraphs (a) through (d) of this sec- classification in appropriate cir- tion; cumstances. (f) A statement of the goals and ob- (b) This section and §§ 3001.162 jectives of the proposed market test, through 3001.166 are effective November supported by quantitative projections 28, 2001 through November 28, 2006. of anticipated results to the extent practicable. § 3001.162 Filing of market test pro- (g) A statement of those features of posal and supporting direct evi- the proposed market test that, in the dence. opinion of the Postal Service, cannot Whenever the Postal Service deter- be modified without significantly im- mines to request that the Commission pairing the value of the test; submit a recommended decision on a (h) An estimate of the number of cus- change in mail classification preceded tomers who will participate in the mar- by testing in the market, the Postal ket test to the extent that such an es- Service shall file with the Commission, timate is practicable, together with a in addition to its request for a perma- description of the means by which the nent change in mail classification pur- Postal Service plans to provide equal suant to section 3623, a request for a access to all potential users in the test recommended decision in favor of its market service areas; and proposed market test of the requested (i) A plan for testing the proposed change in mail classification. Each for- change or changes in the market, in- mal request filed under this subpart cluding a plan for gathering the data shall include such information and needed to support a permanent change data and such statements of reasons in mail classification and for reporting and bases as are necessary and appro- the test data to the Commission. If priate fully to inform the Commission periodic reporting of the test data and the parties of the nature, scope, would be harmful to the purposes of significance and impact of the proposed the test, such as by revealing informa- market test, and to show that it is in tion that might encourage competitors the public interest and in accordance or mailers to take actions that would with the policies of the Act and the ap- affect the test results, the plan may

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provide for presentation of the test provide in support of its position. The data as part of the subsequent filing of Commission will hold hearings on a data supporting a permanent mail clas- Postal Service request made pursuant sification change. to this subpart when it determines that there is a genuine issue of material § 3001.163 Procedures—expedition of fact to be resolved, and that a hearing public notice and procedural sched- is needed to resolve that issue. ule. [66 FR 54441, Oct. 29, 2001, as amended at 68 (a) The purpose of this section is to FR 12590, Mar. 17, 2003] provide a schedule for expediting proceedings in which the Postal Service § 3001.164 Rule for decision. proposes to conduct a market test of a The Commission will issue a decision requested change in mail classification on the Postal Service’s proposed mar- it has submitted to the Commission ket test in accordance with the policies pursuant to section 3623. of the Postal Reorganization Act, but (b) Persons who are interested in par- will not recommend modification of ticipating in proceedings to consider any feature of the proposed market Postal Service requests to conduct a test which the Postal Service has iden- market test may intervene pursuant to tified in accordance with § 3001.162(g). § 3001.20 within 28 days after the filing The purpose of this subpart is to allow of a formal request made under the for consideration of proposed market provisions of this subpart. Parties may tests within 90 days, consistent with withdraw from a particular case by fil- the procedural due process rights of ining a notice with the Secretary of the terested persons. Commission. (c) When the Postal Service files a re- § 3001.165 Data collection and report- quest under the provisions of this sub- ing requirements. part, it shall comply with the standard In any case in which the Commission Filing Online procedures of §§ 3001.9 has issued a recommended decision in though 3001.12. favor of a market test requested by the (d) When the Postal Service files a Postal Service, and the Board of Gov- request under the provisions of this ernors has put the market test rec- subpart, it shall on that same day file ommended by the Commission into ef- a notice that briefly describes its pro- fect, the Postal Service shall gather posal. This notice shall indicate on its test data and report them to the Com- first page that it is a notice of a Mar- mission in accordance with the plan ket Test Request to be considered submitted pursuant to § 3001.162(h). If under §§ 3001.161 through 3001.166, and the Postal Service’s plan for reporting identify the last day for filing a notice test data does not provide for periodic of intervention with the Commission. reporting during the conduct of the (e) Within 5 days after receipt of a test, the Postal Service shall submit Postal Service request under the provi- all test data to the Commission no sions of this subpart, the Commission later than 60 days following the conclu- shall issue a notice of proceeding and sion of the test. provide for intervention by interested parties pursuant to § 3001.20. In the § 3001.166 Suspension, continuation or event that a party wishes to dispute a termination of proceeding. genuine issue of material fact to be re- (a) In any case in which the Commis- solved in the consideration of the Post- sion has issued a recommended deci- al Service’s request, that party shall sion in favor of a market test requested file with the Commission a request for by the Postal Service, and the Board of a hearing within the time allowed in Governors has put the market test rec- the notice of proceeding. The request ommended by the Commission into ef- for a hearing shall state with speci- fect, the Postal Service may move for ficity the fact or facts set forth in the suspension of the proceeding in which Postal Service’s filing that the party its request for a permanent change in disputes, and when possible, what the mail classification is to be considered. party believes to be the true fact or The Commission shall grant the Postal facts and the evidence it intends to Service’s motion for suspension if, in

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the Commission’s opinion, it would be competitors of the Postal Service. Ex- reasonable under the circumstances to cept in extraordinary circumstances defer consideration of the request until and for good cause shown, the Commis- the information to be produced in con- sion shall not recommend provisional nection with the market test becomes services of more than two years in du- available. ration; however, the Commission may (b) At any time during the pendency grant a request to extend a provisional of a market test recommended by the service for an additional year if a Post- Commission pursuant to this subpart, al Service request to establish the pro- or following the completion of such a visional service as a permanent mail market test, the Postal Service may classification is pending before the move to revise or withdraw its request Commission. for a permanent change in mail classi- (b) This section and §§ 3001.172 fication. If the Postal Service moves to through 3001.176 are effective November revise its request, it shall file with the 28, 2001 through November 28, 2006. Commission all data necessary to support its amended request. If the Postal § 3001.172 Filing of formal request and Service moves to withdraw its request, prepared direct evidence. it shall explain the circumstances leading to its motion, but need not produce (a) Whenever the Postal Service de- the test data that would otherwise be termines to request that the Commis- submitted pursuant to § 3001.165. sion submit a decision recommending the establishment of a provisional serv- Subpart J—Rules for Expedited Re- ice of limited and fixed duration, it shall file a request for a change in mail view of Requests for Provi- classification pursuant to section 3623 sional Service Changes of that comports with the requirements Limited Duration of this subpart and of subpart C of the rules of practice. Each formal request SOURCE: 66 FR 54443, Oct. 29, 2001, unless shall include the following particular otherwise noted. information: (1) A description of the proposed clas- § 3001.171 Applicability. sification, including proposed Domestic (a) This section and §§ 3001.172 Mail Classification Schedule language through 3001.176 apply in cases in which and rate schedules; the Postal Service requests that the (2) A statement of the goals and ob- Commission recommend the establish- jectives of introducing the proposed ment of a provisional service which provisional service, supported by quan- will supplement, but will not alter, ex- titative projections of anticipated re- isting mail classifications and rates for sults to the extent practicable. a limited and fixed duration. The re- (3) A statement of those features of quirements and procedures specified in the proposed provisional service that, these sections apply exclusively to the in the opinion of the Postal Service, Commission’s determination to rec- cannot be modified without signifi- ommend in favor of or against a provi- cantly reducing the benefits of intro- sional service proposed by the Postal ducing the proposed service; Service, and do not supersede the rules applicable to requests for permanent (4) An explanation and complete doc- changes in rates, fees, mail classifica- umentation of the development of the tions, and in the nature of postal serv- rates proposed for the provisional services. In administering this subpart, it ice; shall be the policy of the Commission (5) A termination date on which the to recommend the introduction of pro- proposed provisional service will be visional services that enhance the discontinued; range of postal services available to (6) An estimate of the effect of imple- the public, without producing a mate- menting the proposed provisional serv- rial adverse effect overall on postal ice on overall Postal Service costs and revenues or costs, and without causing revenues during the period in which it unnecessary or unreasonable harm to is in effect; and

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(7) A plan for meeting the data col- Filing Online procedures of §§ 3001.9 lection and reporting requirements through 3001.12. specified in § 3001.175. (d) When the Postal Service files a (b) If the Postal Service believes that request under the provisions of this data required to be filed under § 3001.64 subpart, it shall on that same day file are unavailable, it shall explain their a notice that briefly describes its pro- unavailability, as required by posal. Such notice shall indicate on its § 3001.64(a)(2)(i), (ii), and (iv). In par- first page that it is a notice of a Re- ticular, if the provisional character of quest for Establishment of a Provi- the request bears on the unavailability sional Service to be considered under of the data in question, the Postal §§ 3001.171 through 3001.176, and identify Service shall explain in detail the the last day for filing a notice of inter- nexus between these circumstances. A vention with the Commission. satisfactory explanation of the un- (e) Within 5 days after receipt of a availability of data will be grounds for Postal Service request under the provi- excluding from the proceeding a con- sions of this subpart, the Commission tention that the absence of the data shall issue a notice of proceeding and should form a basis for rejection of the provide for intervention by interested request, unless the party desiring to parties pursuant to § 3001.20. In the make such contention event that a party wishes to dispute a (1) Demonstrates that, having regard genuine issue of material fact to be re- to all the facts and circumstances of solved in the consideration of the Post- the case, it was clearly unreasonable al Service’s request, that party shall for the Postal Service to propose the file with the Commission a request for change in question without having first a hearing within the time allowed in secured the data which are unavailable, the notice of proceeding. The request or for a hearing shall state with speci- (2) Demonstrates other compelling ficity the fact or facts set forth in the circumstances requiring that the ab- Postal Service’s filing that the party sence of the data in question be treated disputes, and when possible, what the as bearing on the merits of the pro- party believes to be the true fact or posal. facts and the evidence it intends to provide in support of its position. The § 3001.173 Procedures—expedition of Commission will hold hearings on a public notice and procedural schedule. Postal Service request made pursuant to this subpart when it determines that (a) The purpose of this section is to there is a genuine issue of material provide a schedule for expediting pro- fact to be resolved, and that a hearing ceedings in which the Postal Service is needed to resolve that issue. requests that the Commission recommend the establishment of a provi- [66 FR 54443, Oct. 29, 2001, as amended at 68 sional service which will supplement, FR 12590, Mar. 17, 2003] but will not alter, existing mail classifications and rates for a limited and § 3001.174 Rule for decision. fixed duration. The Commission will issue a decision (b) Persons who are interested in par- on the Postal Service’s proposed provi- ticipating in proceedings to consider sional service in accordance with the Postal Service requests to establish a policies of the Postal Reorganization provisional service may intervene pur- Act, but will not recommend modifica- suant to § 3001.20 within 28 days after tion of any feature of the proposed the filing of a formal request made service which the Postal Service has under the provisions of this subpart. identified in accordance with Parties may withdraw from a par- § 3001.172(a)(iii). The purpose of this ticular case by filing a notice with the subpart is to allow for consideration of Secretary of the Commission. proposed provisional services within 90 (c) When the Postal Service files a re- days, consistent with the procedural quest under the provisions of this sub- due process rights of interested per- part, it shall comply with the standard sons.

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§ 3001.175 Data collection and report- of the Postal Service cannot generate ing requirements. sufficient volumes and revenues to re- In any case in which the Commission cover all costs associated with the new has issued a recommended decision in service in the first full fiscal year of its favor of a provisional service of limited operation. In administering these duration requested by the Postal Serv- rules, it shall be the Commission’s police, and the Board of Governors has put icy to adopt tests periods of up to 5 fis- the provisional service recommended cal years for the purpose of deter- by the Commission into effect, the mining breakeven for newly introduced Postal Service shall collect and report postal services where the Postal Serv- data pertaining to the provisional service has presented substantial evidence ice during the period in which it is in in support of the test period proposed. effect in accordance with the periodic (b) This section and § 3001.182 are ef- reporting requirements specified in fective November 28, 2001 through No- § 3001.102. If the Postal Service’s reg- vember 28, 2006. ular data reporting systems are not revised to include the provisional service § 3001.182 Filing of formal request and prepared direct evidence. during the period of its effectiveness, the Postal Service shall perform, and In filing a request for establishment provide to the Commission on a sched- of a new postal service pursuant to sec- ule corresponding to § 3001.102 reports, tion 3623, the Postal Service may re- special studies to provide equivalent quest that its proposal be considered information to the extent reasonably for a test period of longer duration practicable. than the test period prescribed in § 3001.54(f)(2). Each such request shall § 3001.176 Continuation or termination be supported by the following informa- of provisional service. tion: At any time during the period in (a) The testimony of a witness on be- which a provisional service rec- half of the Postal Service, who shall ommended by the Commission and im- provide: plemented by the Board of Governors is (1) A complete definition of the in effect, the Postal Service may sub- multi-year test period requested for mit a formal request that the provi- the proposed new service; sional service be terminated, or that it (2) A detailed explanation of the be established, either as originally rec- Postal Service’s preference of a multi- ommended by the Commission or in year test period, including the bases of modified form, as a permanent mail the Service’s determination that the classification. Following the conclu- test period prescribed in § 3001.54(f)(2) sion of the period in which the provi- would be inappropriate; and sional service was effective, the Postal (3) A complete description of the Service may submit a request to estab- Postal Service’s plan for achieving an lish the service as a mail classification appropriate contribution to institu- under any applicable subpart of the tional costs from the new service by Commission’s rules. the end of the requested test period. (b) Complete documentary support Subpart K—Rules for Use of Multi- for, and detail underlying, the test pe- Year Test Periods riod requested by the Postal Service, including: SOURCE: 66 FR 54444, Oct. 29, 2001, unless (1) Estimated costs, revenues, and otherwise noted. volumes of the proposed new service for the entire requested test period; § 3001.181 Use of multi-year test period (2) Return on investment projections for proposed new services. and all other financial analyses pre- (a) The rules in §§ 3001.181 and 3001.182 pared in connection with determining apply to Postal Service requests pursu- the cost and revenue impact of the pro- ant to section 3623 for the establish- posed new service; and ment of a new postal service, with at- (3) Any other analyses prepared by tendant rates, which in the estimation the Postal Service that bear on the

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overall effects of introducing the pro- Postal Reorganization Act, or who be- posed new service during the requested lieve that they are not receiving postal test period. service in accordance with the policies of title 39, may lodge a complaint with PART 3002—ORGANIZATION the Commission under section 3001.82. Persons served by post offices that the Sec. Postal Service decides to close or con- 3002.1 Purpose. solidate with other post offices may ap- 3002.2 Statutory functions peal such determinations under 3002.3 The Commission and its offices. § 3001.111. 3002.4 Administrative Office. 3002.5 Office of Rates, Analysis, and Plan- [64 FR 58337, Oct. 29, 2000] ning. 3002.6 Office of the General Counsel. § 3002.3 The Commission and its of- 3002.7 Office of the Consumer Advocate. fices. 3002.8 Official seal. (a) The Commissioners. The Postal APPENDIX A TO PART 3002—POSTAL RATE Rate Commission is an independent es- COMMISSION, MISSION STATEMENT OF THE tablishment of the executive branch of OFFICE OF THE CONSUMER ADVOCATE the U.S. Government created by the AUTHORITY: 39 U.S.C. 3603; 5 U.S.C. 552. Postal Reorganization Act (84 Stat. 719, title 39, U.S.C.). The Commission con- § 3002.1 Purpose. sists of five Commissioners appointed This part is published in compliance by the President and confirmed by the with 5 U.S.C. 552(a)(1) and constitutes a Senate, one of whom is designated as general description of the Postal Rate Chairman by the President. Commission. (b) The Chairman and Vice-Chair- man. The Chairman has the adminis- [36 FR 21994, Nov. 18, 1971] trative responsibility for assigning the business of the Commission to the § 3002.2 Statutory functions. other Commissioners and to the offices (a) Areas of jurisdiction. The Commis- and employees of the Commission. He/ sion has jurisdiction over changes in She has the administrative duty to pre- postal rates and fees under 39 U.S.C. side at the meetings and sessions of the 3622, and over mail classifications Commision and to represent the Com- under 39 U.S.C. 3623. It issues rec- mission in matters specified by statute ommended decisions to the Governors or executive order or as the Commis- of the Postal Service on these matters. sion directs. The Commission shall It also acts on postal patrons’ appeals elect annually a member of the Com- from Postal Service decisions to close mission to serve as Vice-Chairman of or consolidate post offices under 39 the Commission for a term of one year U.S.C. 404(b). Further, the Commission or until a successor is elected. In case investigates complaints of substantial of a vacancy in the Office of the Chair- national scope concerning postal rates, man of the Commission, or in the ab- fees, mail classifications or services sence or inability of the Chairman to under 39 U.S.C. 3662. It also responds to serve, the Vice-Chairman, unless other- requests of the Postal Service for advi- wise directed by the Chairman, shall sory opinions on changes in the nature have the administrative responsibil- of postal services under 39 U.S.C. 3661. ities and duties of the Chairman during Because of the Commission’s expertise, the period of vacancy, absence, or in- Congress occasionally asks it to under- ability. take special studies on postal issues. (c) The Commission’s offices are lo- (b) Public participation. Interested cated at 1333 H Street, NW., Suite 300, persons may elect to participate in Washington, DC 20268. On these prem- Commission rate and mail classifica- ises, the Commission maintains offices tion proceedings as formal intervenors for Commissioners and the staff com- (§ 3001.20), limited participators ponents described in §§ 3001.4, 3001.5, (§ 3001.20a), or commenters (§ 3001.20b). 3001.6 and 3001.7; a docket room where Interested parties who believe the documents may be filed with the Com- Postal Service is charging rates which mission pursuant to § 3001.9 and exam- do not conform with the policies of the ined by interested persons; a public

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reading room where the Commission’s (d) The personnel management func- public records are available for inspections set out above are the immediate tion and copying; a library containing responsibility of the Personnel Officer, legal and technical reference mate- whose position is located in the Admin- rials; and a hearing room where formal istrative Office. evidentiary proceedings are held on (e) The Administrative Office is also matters before the Commission. The responsible for the maintenance of the Commission also maintains an elec- Commission’s public information re- tronic reading room accessible through sources, including the docket room, the the Internet, on its website at physical reading room, and the library www.prc.gov. on the premises of the Commission’s [48 FR 13167, Mar. 30, 1983. Redesignated and offices, as well as the electronic read- amended at 64 FR 58337, Oct. 29, 1999] ing room accessible on the Commis- sion’s website at www.prc.gov. The in- § 3002.4 Administrative Office. formation available on the Commis- (a) The incumbent head of the office sion’s website is, in general, coexten- is responsible for exercising two execu- sive with that available from the Com- tive functions of the Commission and mission’s docket room and physical utilizes the title of either ‘‘Secretary’’ reading room, and includes: Commis- or ‘‘Chief Administrative Officer’’, as sion decisions, rules, orders and no- appropriate. tices; testimony, pleadings and ref- (b) As Secretary of the Commission, erence materials filed in Commission the incumbent head shall have custody proceedings; and current information of the Commission’s seal, the minutes concerning Commission activities, em- of all action taken by the Commission, ployment opportunities, and a calendar its rules and regulations, its adminis- of upcoming events. trative and other orders, and records. All orders and other actions of the [48 FR 13167, Mar. 30, 1983. Redesignated and Commission shall be authenticated or amended at 64 FR 58337, Oct. 29, 1999] signed by the Secretary or any such other person as may be authorized by § 3002.5 Office of Rates, Analysis, and the Commission. Planning. (c) As Chief Administrative Officer (a) The Office of Rates, Analysis, and the incumbent head is also responsible, Planning is responsible for technical subject to the policy guidelines of the (as opposed to legal) analysis and the Commission, for: Development, imple- formulation of policy recommenda- mentation, and administration of the tions for the Commission. Commission’s financial management (b) This office provides the analytic system and accounting activities in- support to the Commission for review- cluding those relating to the budget ing the record of rate and classification and the payroll; development and ad- requests, post office closings and other ministration in conjunction with the issues which come before the Commis- Personnel Officer of a personnel pro- sion. The functional areas of expertise gram designed to meet the needs of the within this office are: Commission and its employees; devel- (1) The economic analysis of the mar- opment and administration, subject to ket for postal services including the al- the supervision of the Chairman, of a ternative sources for such services and public information program appropriate to the agency mission; provision the users of the service; of facilities and operating and support (2) The analysis of the operational services essential to the efficent and characteristics of the postal system effective conduct of operations; acqui- and its interface with various segments sition, planning and assignment of of- of the economy; and, fice space; procurement and supply; (3) The analysis of the costs of oper- serving as the contracting officer for ating the Postal Service and how such the Commission and controlling the ob- costs are influenced by the operational ligation of Commission funds, as au- characteristics. thorized by the Commission.

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(c) These functional activities are sion legal and evidentiary presen- combined in the evaluation of the rev- tations in all formal Commission dock- enue requirements of the Postal Serv- ets under chapter 36 of title 39, U.S. ice under possible alternative oper- Code. It also is responsible for main- ating circumstances for the purpose of taining a continuing litigation capa- developing rate structures. They are bility including preparation for consid- also used to evaluate the impact of var- eration of issues likely to reflect the ious proposed changes to the Domestic interests of the general public in subse- Mail Classification Schedule and the quent proceedings. consequences of these changes upon the (b) The head of this office is respon- mailers and upon the revenue requirements and rate structure of the Postal sible for directing both legal and tech- Service. nical personnel to fulfill its functions. (d) The office also collects, analyzes The office includes both litigation at- and periodically summarizes financial torneys and a broad spectrum of tech- and various other statistical informa- nical expertise to analyze and evaluate tion for use in its ongoing activities the diverse economic, cost and market and for the development of future issues before the Commission. During methods, techniques and systems of the pendency of a proceeding, per- analysis and reporting. sonnel serving in the Office of the Con- [48 FR 13168, Mar. 30, 1983, as amended at 62 sumer Advocate are prohibited from FR 45530, Aug. 28, 1997. Redesignated at 64 FR participating or advising as to any in- 58337, Oct. 29, 1999] termediate or Commission decision in that proceeding pursuant to the Com- § 3002.6 Office of the General Counsel. mission Rules of Practice. The General Counsel directs and co- (c) A mission statement regarding ordinates the functions of the Office of the Office of the Consumer Advocate is the General Counsel and is directly re- contained as appendix A to this part. sponsible for the counseling and advisory services set forth in 39 CFR [48 FR 13168, Mar. 30, 1983, as amended at 64 3000.735–203. In accordance with § 3001.8 FR 37402, July 12, 1999] of the rules of practice, the General Counsel does not appear as an attorney § 3002.8 Official seal. in hearings in any proceeding before (a) Authority. The Seal described in the Commission and takes no part in this section is hereby established as the preparation of evidence or argu- the official seal of the Postal Rate ment presented in such hearings. The Commission. General Counsel represents the Com- (b) Description. (1) On a white disc mission in court proceedings and per- within a blue border with inner and forms legal research on issues coming outer rims gold and inscribed at top before the Commission; advises the POSTAL RATE COMMISSION and in Commission on the legal aspects of proposed legislation and rulemaking, base, between two small five-pointed the legal aspects of proposed action stars, 1970, all in gold, the shield of the and policies on procurement, con- coat of arms in full color blazoned as tracting, personnel matters, and other follows: internal legal questions. Five blue stars on a white stripe running [48 FR 13168, Mar. 30, 1983] from the upper left to the lower right of the shield, with three white billets on each of § 3002.7 Office of the Consumer Advo- the upper and lower sections of the shield, cate. the former blue and the latter red. (a) The Office of the Consumer Advo- (2) The official seal of the Postal cate provides representation for the in- Rate Commission is modified when re- terests of the general public in Com- produced in black and white and when mission proceedings. The office pre- embossed, as it appears in this section. pares and litigates before the Commis-

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5. Engage in dialogue with parties or participants in proceedings before the Commis- sion to advance the interests of consumers; 6. Encourage the equitable settlement of issues among the parties and participants in proceedings whenever possible; 7. Promote fair competition between the United States Postal Service and its competitors for the ultimate benefit of consumers; 8. Seek out responsible advocates of consumer interests and encourage their participation in Commission cases; 9. Maintain the highest standards of com- petence and quality in all evidence and pleadings submitted to the Commission; and (c) Custody and authorization to affix. 10. Maintain separation and independence (1) The seal is the official emblem of from the Commission and its advisory staff the Postal Rate Commission and its in the course of proceedings before the Com- mission. use is therefore permitted only as provided in this part. [64 FR 37402, July 12, 1999] (2) The seal shall be kept in the custody of the Secretary and is to be used PART 3003—PRIVACY ACT RULES to authenticate records of the Postal Rate Commission and for other official Sec. purposes. 3003.1 Purpose and scope. 3003.2 Definitions. (3) Use by any person or organization 3003.3 Procedures for requesting inspection, outside of the Commission may be copying, or correction. made only with the Commission’s prior 3003.4 Response to a request. written approval. Such request must be 3003.5 Appeals of denials of access or amend- made in writing to the Secretary. ment. 3003.6 Fees. [39 FR 2481, Jan. 22, 1974. Redesignated at 42 3003.7 Exemptions. FR 3646, Jan. 19, 1977, and 48 FR 13168, Mar. AUTHORITY: Privacy Act of 1974 (Pub. L. 93– 30, 1983] 579), 5 U.S.C. 552a. APPENDIX A TO PART 3002—POSTAL SOURCE: 64 FR 57982, Oct. 28, 1999, unless RATE COMMISSION, MISSION STATE- otherwise noted. MENT OF THE OFFICE OF THE CON- § 3003.1 Purpose and scope. SUMER ADVOCATE This part implements the Privacy The mission of the Office of the Consumer Act of 1974 (5 U.S.C. 552a) by estab- Advocate is to be a vigorous, responsive, and lishing Commission policies and proce- effective advocate for reasonable and equi- dures that permit individuals to obtain table treatment of the general public in pro- access to and request amendment of in- ceedings before the Postal Rate Commission. In furtherance of this mission, the Office of formation about themselves that is the Consumer Advocate will: maintained in systems of records. This 1. Give a strong and consistent voice to the part does not expand or restrict any views of consumers, especially those that are rights granted under the Privacy Act not otherwise represented in Commission of 1974. proceedings; 2. Argue for equity on behalf of individuals § 3003.2 Definitions. and small businesses, both as senders and as For purposes of this part: recipients of mail and mail services; (a) Commission means the Postal Rate 3. Utilize all means and procedures avail- Commission. able under the Commission’s rules and appli- (b) Individual, record, and system of cable law to present evidence and arguments on behalf of consumers in Commission pro- records have the meanings specified in 5 ceedings; U.S.C. 552a(a). 4. Assist in the development of a complete (c) Day means a calendar day and record on issues pending before the Commis- does not include Saturdays, Sundays, sion; and legal holidays.

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§ 3003.3 Procedures for requesting in- the Commission contains such a spection, copying, or correction. record. (a) An individual who— (b) In the case of a request for access (1) Wishes to know whether a Com- to a record or for a copy of a record, mission system of records contains a the chief administrative officer shall record about him or her, acknowledge the request within 10 days (2) Seeks access to a Commission and shall promptly thereafter— record about him or her that is main- (1) Fulfill the request by mail or ar- tained in a system of records (including range for an inspection by the re- the accounting of disclosures), or quester in the Commission’s offices; or (3) Seeks to amend a record about (2) If the request is denied, notify the him or her that is maintained in a sys- requester of the denial, the reasons for tem of records, may file a written re- the denial, the procedures for appealing quest with the chief administrative of- the refusal, and the name and address ficer of the Commission at the Com- of the Chairman of the Commission mission’s current address (1333 H who will consider an appeal. Street NW., Suite 300, Washington, DC (c) In the case of a request for amend- 20268–0001). The request should state on ment, the chief administrative officer the outside of the envelope and in the shall: request that it is a Privacy Act re- (1) Acknowledge the request in writ- quest. ing within 10 days; (b) A request for amendment must (2) Promptly review the record; and describe the information sought to be (3)(i) Make any requested amendment amended and the specific reasons for of a record found to be not accurate, the amendment. relevant, timely, or complete; notify (c) A requester— the requester of the change and provide (1) May request an appointment to a copy of the corrected record; and no- inspect records at the Commission’s of- tify any previous recipient of the fices between the hours of 8 a.m. and record (excluding Commission staff 4:30 p.m. on any day; who obtained the record in the per- (2) Must present suitable identifica- formance of their duties and recipients tion, such as a driver’s license, em- under the Freedom of Information Act) ployee identification card, or Medicare of any change; or card; (ii) Inform the requester of a refusal (3) If accompanied by another indi- to amend the record, the reasons for vidual, must sign a statement, if re- the refusal, the procedures for appeal- quested by the chief administrative of- ing the refusal, and the name and ad- ficer, authorizing discussion of his or dress of the Chairman of the Commis- her record in the presence of that indi- sion who will consider an appeal. vidual; (4) Who files a request by mail must § 3003.5 Appeals of denials of access or include his or her date of birth, dates amendment. of employment at the Commission (if (a) If a request for access to or applicable), and suitable proof of iden- amendment of a record is denied, the tity, such as a facsimile of a driver’s li- requester may file a written appeal cense, employee identification card, or with the Chairman of the Commission. Medicare card; and The Chairman will decide each appeal (5) Must, if requested by the chief ad- within 30 days of receipt unless the ministrative officer, provide additional Chairman has, for good cause, extended proof of identification. the period for another 30 days. (b) If an appeal is denied, the re- § 3003.4 Response to a request. quester will be notified of the decision, (a) In the case of a request for notice the reasons for the denial, the right to of the existence of a record, the chief file a concise statement of disagree- administrative officer shall respond ment, the procedures for filing a state- within 10 days of receipt of a request ment of disagreement, the subsequent and shall inform the individual wheth- uses of a statement of disagreement, er a system of records maintained by and of the right to seek judicial review

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in accordance with subsection (g) of Commission’s website at www.prc.gov. the Privacy Act. The Commission’s guide to the FOIA, all required FOIA indexes, and any § 3003.6 Fees. available annual FOIA reports, are also The first copy of any record fur- available at the website in the elec- nished under the Privacy Act of 1974 tronic reading room or elsewhere on will be provided without charge. Addi- the site. tional copies will be charged at the (d) Section 3001.42(b) of this chapter cost of reproduction. identifies records that the Commission has determined to be public. § 3003.7 Exemptions. The Postal Rate Commission has not § 3004.2 Reading room. established any exempt system of (a) The Commission maintains a pub- records. lic reading room at its offices at 1333 H Street NW., Washington, DC 20268. The PART 3004—FREEDOM OF reading room is open from 8:00 a.m. INFORMATION RULES until 4:30 p.m. during business days. (b) The records available for public inspection and copying in the reading Sec. 3004.1 Purpose. room include: final opinions, state- 3004.2 Reading room. ments of policy, administrative staff 3004.3 Requests for records and or expedited manuals and instructions that affect a processing. member of the public, copies of se- 3004.4 Response to requests. lected records released under the FOIA, 3004.5 Appeals. and indexes required to be maintained 3004.6 Fees. under the FOIA, and records described 3004.7 Aggregation of requests. 3004.8 Submission of business information. in 39 CFR 3001.42(b) relating to any matter or proceeding before the Com- AUTHORITY: 39 U.S.C. 3603; 5 U.S.C. 552, mission. 552a. (c) The Commission’s electronic read- SOURCE: 64 FR 58337, Oct. 29, 1999, unless ing room is maintained at its website otherwise noted. at www.prc.gov. Commission decisions, orders, rules of practice, and other di- § 3004.1 Purpose. rectives affecting the public are avail- (a) This part is published pursuant to able from the electronic reading room. the Freedom of Information Act To the extent practicable, other docu- (FOIA), 5 U.S.C. 552, to describe the ments available in the reading room procedures by which a person can re- are also posted and available on the quest copies of Commission records. It website. also describes how a submitter of trade secrets or confidential business infor- § 3004.3 Requests for records and for mation can identify information that expedited processing. the submitter believes to be exempt (a) A request for records must be in from disclosure under 5 U.S.C. 552(b). writing and must reasonably describe (b) An individual seeking access to a the records sought. A request should be record about himself or herself that is addressed or delivered to the Secretary subject to the Privacy Act of 1974 of the Commission at the offices of the should also consult the Commission’s Commission at 1333 H Street NW., Privacy Act rules in part 3003 for the Washington, DC 20268. A request should procedures that apply to requests for be clearly identified as ‘‘Freedom of In- records under that Act. Requests for formation Act Request’’ both in the first-party access can be made under text of the request and on the envelope. both the FOIA and the Privacy Act of A requester should include a daytime 1974. telephone number. (c) Information required to be pub- (b) A request for expedited processing lished or made available pursuant to 5 may be made in cases in which the re- U.S.C. 552(a)(1) and (a)(2) may be found quester demonstrates a compelling in part 3002, elsewhere in this chapter, need as defined in 5 U.S.C. in the FEDERAL REGISTER, or on the 552(a)(6)(E)(v). The Commission may

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otherwise grant requests for expedited subject to the FOIA; an adverse deci- processing at its discretion. A request sion on any disputed fee matter, infor expedited processing should be cluding a denial of a requested fee clearly identified as ‘‘Expedited Free- waiver; and a denial of a request for ex- dom of Information Act Request’’ both pedited treatment. in the text of the request and on the (c) Within ten days after the receipt envelope. of a request for expedited processing, (c) A demonstration of compelling the Secretary will: need by a requester seeking expedited (1) Grant the request for expedited processing must be made by a state- processing and process the request for ment certified by the requester to be records as soon as practicable; or true and correct to the best of the re- (2) Deny a request for expedited proc- quester’s knowledge and belief. At its essing in writing. Any request for discretion, the Commission may waive records that has been denied expedited the requirement for certification. processing will be processed in the (d) A request for expedited processing same manner as a request that did not may be made at the time of an initial seek expedited processing. The denial request (or appeal) or at a later time. letter will inform the requestor that he/she may, within five days, appeal § 3004.4 Response to requests. the denial to the Commission. (a) Within 20 days (excluding Satur- (d) If warranted by the unusual cir- days, Sundays, and legal public holi- cumstances specified in 5 U.S.C. days) after receipt of a request for a 552(a)(6)(B)(iii), the Secretary may ex- Commission record, the Secretary of tend the time for a response for up to the Commission will: ten working days. The Secretary will (1) Determine to comply with the re- notify the requester of any extension, quest and immediately notify the re- and the reason for the extension, in quester of the determination and of writing. The Secretary will also pro- any fees that must be paid; or vide the requester with an opportunity (2) Deny the request in writing. The to limit the scope of the request or to denial letter will explain the reason for arrange an alternative time frame for the denial, including each exemption processing the request or a modified re- used as a basis for withholding of the quest. records sought. The denial letter will include an estimate of the volume of § 3004.5 Appeals. requested matter that was denied. If (a) A requester who seeks to appeal disclosure of a record has been par- any denial must file an appeal in writ- tially denied, the amount of informa- ing with the Commission. The Commis- tion deleted will be indicated on the re- sion may review any decision of the leased portion if technically feasible. If Secretary on its own initiative. The revealing the amount or location of a Commission will grant or deny the ap- denied record will harm an interest peal in writing, within 20 days (exclud- protected by an exemption, then the ing Saturdays, Sundays and legal pub- description of the amount or location lic holidays) of the date the appeal is of deleted information may be with- received. If on appeal the denial of the held. The denial letter will inform the request for records is upheld, the Com- requestor that he/she may, within one mission will notify the person making year, appeal the denial to the Commis- such request of the provisions for judi- sion. cial review of that determination pur- (b) A denial is any form of adverse suant to 5 U.S.C. 552(c). The Commis- determination, including: a determina- sion will expeditiously consider an ap- tion to withhold any requested record peal of a denial of expedited processing. in whole or in part; a determination (b) If warranted by the unusual cir- that a requested record does not exist cumstances specified in 5 U.S.C. or cannot be located; a determination 552(a)(6)(B)(iii), the Commission may that a record is not readily reproduc- extend the time for a response to an ible in the form or format sought by appeal for up to ten working days. The the requester; a determination that Commission will notify the requester what has been requested is not a record of any extension, and the reason for

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the extension, in writing. The Commis- ates a program or programs of schol- sion will also provide the requester arly research. with an opportunity to limit the scope (7) Noncommercial scientific institution of the request or to arrange an alter- means an institution, not operated on native time frame for processing the a commercial basis (as referenced request or a modified request. above), which is operated solely for the purpose of conducting scientific re- § 3004.6 Fees. search whose results are not intended (a) Definitions pertaining to fees: to promote any particular product or (1) Direct costs means expenditures industry. the Commission actually incurs in (8) Representative of the news media searching for, duplicating, and, where means any person actively gathering applicable, reviewing documents to re- news for an entity organized and oper- spond to a request. They include (with- ated to publish or broadcast news to out limitation) the salary of the em- the public. News means information ployee performing work (the basic pay about current events or that would be rate of such employee plus 16 percent of current interest to the public. Free- to cover benefits) and the cost of oper- lance journalists will be regarded as ating required machinery. working for a news medium if they (2) Search includes all time spent demonstrate (for example, by a publi- looking for material responsive to a re- cation contract or a past record of pub- quest, including identification of pages lication) a solid basis for expecting or lines within documents. The term publication through such organization covers both manual and computerized even though not actually employed by searching. it. (3) Duplication means making copies (b) Except in the case of commercial- of documents necessary to respond to a use requesters, the first 100 pages of du- request. Such copies may be paper, plication and the first two hours of microform, audiovisual, or machine- search time are provided without readable. charge. A page for these purposes is a (4) Review means examining docu- letter- or legal-size sheet, or the equiv- ments located in response to a com- alent amount of information in a me- mercial-use request to determine dium other than paper copy. Search whether any portion is exempt from time for these purposes refers to man- mandatory disclosure, and processing ual searching; if the search is per- or preparing documents for release, but formed by computer, the amount not not determination of general legal or charged for will be the search cost policy issues regarding application of equivalent to two hours’ salary of the exemptions. person performing the search. No re- (5) Commercial use request means a requester will be charged a fee when the quest from or on behalf of one seeking Commission determines that the cost information for a use or purpose that of collecting the fee would equal or ex- furthers the commercial, trade, or prof- ceed the fee itself. In determining it interests of the requester or person whether cost of collection would equal on whose behalf the request is made. In or exceed the fee, the allowance for two determining the applicability of this hours’ search or 100 pages of duplica- term, the use to which a requester will tion will be made before comparing the put the document is considered first; remaining fee and the cost of collec- where reasonable doubt exists as to the tion. use, the Commission may seek clari- (c) Fees will be charged in accord- fication before assigning the request to ance with the following provisions: a category. (1) The level of fee charged depends (6) Educational institution means a on the category of requester: preschool, a public or private elemen- (i) A request appearing to be for com- tary or secondary school, an institu- mercial use will be charged the full dition of graduate or undergraduate rect costs of searching for, reviewing, higher education, an institution of pro- and duplicating the records sought. fessional education, and an institution (ii) A request from an educational or of vocational education, which oper- noncommercial scientific institution

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will be charged for the cost of duplica- pared by computer (such as tapes or tion only (excluding charges for the printouts), the actual cost of produc- first 100 pages). To be eligible for this tion, including operator time, will be category, a requester must show that charged. the request is made under the auspices (v) Additional services: Postage, in- of a qualifying institution and that the surance, and other additional services records are not sought for commercial that may be arranged for by the reuse but are in furtherance of scholarly quester will be charged at actual cost. (in the case of educational institutions) (d) Interest at the rate prescribed in or scientific (in the case of non- 31 U.S.C. 3717 will be charged on unpaid commercial scientific institutions) re- fee bills, starting on the 31st day after search. the bill was sent. Receipt of a fee by (iii) A request from a representative the Commission, whether processed or of the news media will be charged the not, will stay the accrual of interest. cost of duplication only (excluding (e) Advance payment may be required charges for the first 100 pages). only when the allowable fees are likely (iv) A request from any other re- to exceed $250, in which case advance quester will be charged the full direct payment in part or in full may be re- cost of searching for and duplicating quired of requesters with no history of records responsive to the request, ex- prompt payment, and satisfactory as- cept that the first 100 pages of duplica- surance of payment from requesters tion and the first two hours of search with such history; or when the re- will be furnished without charge. quester has previously failed to pay a (v) A request from a record subject fee timely (within 30 days of the billing for records about himself or herself date), in which case the Commission filed in a Commission Privacy Act sys- may require full payment of the tem of records will be charged fees as amount owed, plus applicable interest, provided under the Commission’s Pri- or a demonstration that the fee has in vacy Act regulations in part 3003 of fact been paid, together with full ad- this chapter. (2) Fees will be calculated as follows: vance payment of the estimated fee. (i) Manual search: At the salary rate When advance payment is required, the (basic pay plus 16 percent) of the em- administrative time limits prescribed ployee(s) making the search. Search in subsection (a)(6) of the FOIA begin time may be charged for even if the only after such payment has been re- Commission fails to locate records or if ceived. records located are exempt from disclo- (f) Records will be provided without sure. charge or at a reduced charge if disclo- (ii) Computer search: At the actual sure of the information is in the public direct cost of providing the search, in- interest because it is likely to concluding computer search time directly tribute significantly to public under- attributable to searching for records standing of the operations or activities responsive to the request, runs, and op- of the government and is not primarily erator salary apportionable to the in the commercial interest of the research. quester. (iii) Review (commercial-use requests): At the salary rate (basic pay § 3004.7 Aggregation of requests. plus 16 percent) of the employee(s) con- Should the Secretary or the Commis- ducting the review. Charges are im- sion reasonably believe that a re- posed only for the review necessary at quester or a group of requesters acting the initial administrative level to de- in concert, have attempted to evade termine the applicability of any ex- fees or to seek a procedural advantage emption, and not for review at the ad- over other requesters by breaking down ministrative appeal level of an exemp- a request into a series of requests, the tion already applied. Commission may aggregate the sepa- (iv) Duplication: At 15 cents per page rate requests and treat them as a sin- for paper copy, which the Commission gle request. Multiple requests involv- has found to be the reasonable direct ing unrelated subjects will not be ag- cost thereof. For copies of records pre- gregated.

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§ 3004.8 Submission of business infor- closure specifying all grounds for with- mation. holding the information under the (a) Any person who submits to the FOIA. If the submitter fails to respond Commission a trade secret or commer- to the notice, the submitter will be cial or financial information that the considered to have no objection to the submitter reasonably believes to be ex- disclosure of the information. empt from disclosure under 5 U.S.C. (d) If, after considering the submit- 552(b) must designate the exempt infor- ter’s objections to disclosure, the Com- mation by appropriate markings at the mission decides to disclose the infor- time of submission or at a reasonable mation, it will give the submitter writ- time after submission. The submission ten notice of the decision and a brief should be accompanied by a brief writ- explanation of the reasons for not sus- ten statement explaining why the in- taining the submitter’s objections. The formation is exempt. Any designation actual disclosure will not be made be- will expire ten years after the date of fore five days after the submitter has the submission unless the submitter re- received the notice. quests, and provides justification for, a (e) A submitter may not receive no- longer period. tice if the Commission determines that (b) Before disclosing, in response to a the information should not be dis- FOIA request, any information properly designated under this part, the closed; if the information has been law- Commission will provide the submitter fully published or officially made avail- with written notice that a request able to the public; or if a statute (other seeks disclosure of the information. than the FOIA) or a regulation requires The Commission may also provide no- disclosure. tice when it has reason to believe that (f) Protection of information made business information possibly exempt available pursuant to proceedings sub- from disclosure may fall within the ject to the rules in 39 CFR part 3001, in- scope of any FOIA request. The re- cluding information provided pursuant quester will be provided a copy of any to that subpart requiring the filing of notice sent to the submitter. periodic reports, is provided upon re- (c) A submitter has seven days to quest to the Commission as described submit written objections to the dis- in § 3001.31a.

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A list of CFR titles, subtitles, chapters, subchapters and parts and an alphabetical list of agencies publishing in the CFR are included in the CFR Index and Finding Aids volume to the Code of Federal Regulations which is published separately and revised annually. Material Approved for Incorporation by Reference Table of CFR Titles and Chapters Alphabetical List of Agencies Appearing in the CFR List of CFR Sections Affected

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The Director of the Federal Register has approved under 5 U.S.C. 552(a) and 1 CFR Part 51 the incorporation by reference of the following publications. This list contains only those incorporations by reference effective as of the revision date of this volume. Incorporations by reference found within a regulation are effective upon the effective date of that regulation. For more information on incorporation by reference, see the preliminary pages of this volume.

39 CFR POSTAL SERVICE 39 CFR United States Postal Service Washington, DC 20260 Domestic Mail Manual, (most recent amendment published in the 111.1; 111.3 Federal Register on May 5, 1994). International Mail Manual, (most recent amendment published in 20.1; 20.3 the Federal Register on March 10, 1994). Postal Procurement Manual, (most recent amendment published in 601.100; 601.105 the Federal Register on December 23, 1992). For information on where these materials are available see— 39 CFR 20.2 Availability of International Mail Manual 39 CFR 111.2 Availability of the Domestic Mail Manual 39 CFR 601.104 Availability of Postal Procurement Manual

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Title 1—General Provisions

I Administrative Committee of the Federal Register (Parts 1—49) II Office of the Federal Register (Parts 50—299) IV Miscellaneous Agencies (Parts 400—500)

Title 2 [Reserved]

Title 3—The President

I Executive Office of the President (Parts 100—199)

Title 4—Accounts

I General Accounting Office (Parts 1—99)

Title 5—Administrative Personnel

I Office of Personnel Management (Parts 1—1199) II Merit Systems Protection Board (Parts 1200—1299) III Office of Management and Budget (Parts 1300—1399) V The International Organizations Employees Loyalty Board (Parts 1500—1599) VI Federal Retirement Thrift Investment Board (Parts 1600—1699) VIII Office of Special Counsel (Parts 1800—1899) IX Appalachian Regional Commission (Parts 1900—1999) XI Armed Forces Retirement Home (Part 2100) XIV Federal Labor Relations Authority, General Counsel of the Fed- eral Labor Relations Authority and Federal Service Impasses Panel (Parts 2400—2499) XV Office of Administration, Executive Office of the President (Parts 2500—2599) XVI Office of Government Ethics (Parts 2600—2699) XXI Department of the Treasury (Parts 3100—3199) XXII Federal Deposit Insurance Corporation (Part 3201) XXIII Department of Energy (Part 3301) XXIV Federal Energy Regulatory Commission (Part 3401) XXV Department of the Interior (Part 3501) XXVI Department of Defense (Part 3601)

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XXVIII Department of Justice (Part 3801) XXIX Federal Communications Commission (Parts 3900—3999) XXX Farm Credit System Insurance Corporation (Parts 4000—4099) XXXI Farm Credit Administration (Parts 4100—4199) XXXIII Overseas Private Investment Corporation (Part 4301) XXXV Office of Personnel Management (Part 4501) XL Interstate Commerce Commission (Part 5001) XLI Commodity Futures Trading Commission (Part 5101) XLII Department of Labor (Part 5201) XLIII National Science Foundation (Part 5301) XLV Department of Health and Human Services (Part 5501) XLVI Postal Rate Commission (Part 5601) XLVII Federal Trade Commission (Part 5701) XLVIII Nuclear Regulatory Commission (Part 5801) L Department of Transportation (Part 6001) LII Export-Import Bank of the United States (Part 6201) LIII Department of Education (Parts 6300—6399) LIV Environmental Protection Agency (Part 6401) LVII General Services Administration (Part 6701) LVIII Board of Governors of the Federal Reserve System (Part 6801) LIX National Aeronautics and Space Administration (Part 6901) LX United States Postal Service (Part 7001) LXI National Labor Relations Board (Part 7101) LXII Equal Employment Opportunity Commission (Part 7201) LXIII Inter-American Foundation (Part 7301) LXV Department of Housing and Urban Development (Part 7501) LXVI National Archives and Records Administration (Part 7601) LXVII Institute of Museum and Library Services (Part 7701) LXIX Tennessee Valley Authority (Part 7901) LXXI Consumer Product Safety Commission (Part 8101) LXXIII Department of Agriculture (Part 8301) LXXIV Federal Mine Safety and Health Review Commission (Part 8401) LXXVI Federal Retirement Thrift Investment Board (Part 8601) LXXVII Office of Management and Budget (Part 8701)

Title 6—Homeland Security

I Department of Homeland Security, Office of the Secretary (Parts 0—99)

Title 7—Agriculture

SUBTITLE A—OFFICE OF THE SECRETARY OF AGRICULTURE (PARTS 0—26) SUBTITLE B—REGULATIONS OF THE DEPARTMENT OF AGRICULTURE

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I Agricultural Marketing Service (Standards, Inspections, Mar- keting Practices), Department of Agriculture (Parts 27—209) II Food and Nutrition Service, Department of Agriculture (Parts 210—299) III Animal and Plant Health Inspection Service, Department of Ag- riculture (Parts 300—399) IV Federal Crop Insurance Corporation, Department of Agriculture (Parts 400—499) V Agricultural Research Service, Department of Agriculture (Parts 500—599) VI Natural Resources Conservation Service, Department of Agri- culture (Parts 600—699) VII Farm Service Agency, Department of Agriculture (Parts 700— 799) VIII Grain Inspection, Packers and Stockyards Administration (Fed- eral Grain Inspection Service), Department of Agriculture (Parts 800—899) IX Agricultural Marketing Service (Marketing Agreements and Or- ders; Fruits, Vegetables, Nuts), Department of Agriculture (Parts 900—999) X Agricultural Marketing Service (Marketing Agreements and Or- ders; Milk), Department of Agriculture (Parts 1000—1199) XI Agricultural Marketing Service (Marketing Agreements and Or- ders; Miscellaneous Commodities), Department of Agriculture (Parts 1200—1299) XIV Commodity Credit Corporation, Department of Agriculture (Parts 1400—1499) XV Foreign Agricultural Service, Department of Agriculture (Parts 1500—1599) XVI Rural Telephone Bank, Department of Agriculture (Parts 1600— 1699) XVII Rural Utilities Service, Department of Agriculture (Parts 1700— 1799) XVIII Rural Housing Service, Rural Business-Cooperative Service, Rural Utilities Service, and Farm Service Agency, Depart- ment of Agriculture (Parts 1800—2099) XX Local Television Loan Guarantee Board (Parts 2200—2299) XXVI Office of Inspector General, Department of Agriculture (Parts 2600—2699) XXVII Office of Information Resources Management, Department of Agriculture (Parts 2700—2799) XXVIII Office of Operations, Department of Agriculture (Parts 2800— 2899) XXIX Office of Energy, Department of Agriculture (Parts 2900—2999) XXX Office of the Chief Financial Officer, Department of Agriculture (Parts 3000—3099) XXXI Office of Environmental Quality, Department of Agriculture (Parts 3100—3199) XXXII Office of Procurement and Property Management, Department of Agriculture (Parts 3200—3299)

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XXXIII Office of Transportation, Department of Agriculture (Parts 3300—3399) XXXIV Cooperative State Research, Education, and Extension Service, Department of Agriculture (Parts 3400—3499) XXXV Rural Housing Service, Department of Agriculture (Parts 3500— 3599) XXXVI National Agricultural Statistics Service, Department of Agri- culture (Parts 3600—3699) XXXVII Economic Research Service, Department of Agriculture (Parts 3700—3799) XXXVIII World Agricultural Outlook Board, Department of Agriculture (Parts 3800—3899) XLI [Reserved] XLII Rural Business-Cooperative Service and Rural Utilities Service, Department of Agriculture (Parts 4200—4299)

Title 8—Aliens and Nationality

I Department of Homeland Security (Immigration and Naturaliza- tion) (Parts 1—599) V Executive Office for Immigration Review, Department of Justice (Parts 1000—1400)

Title 9—Animals and Animal Products

I Animal and Plant Health Inspection Service, Department of Ag- riculture (Parts 1—199) II Grain Inspection, Packers and Stockyards Administration (Packers and Stockyards Programs), Department of Agri- culture (Parts 200—299) III Food Safety and Inspection Service, Department of Agriculture (Parts 300—599)

Title 10—Energy

I Nuclear Regulatory Commission (Parts 0—199) II Department of Energy (Parts 200—699) III Department of Energy (Parts 700—999) X Department of Energy (General Provisions) (Parts 1000—1099) XVII Defense Nuclear Facilities Safety Board (Parts 1700—1799) XVIII Northeast Interstate Low-Level Radioactive Waste Commission (Part 1800)

Title 11—Federal Elections

I Federal Election Commission (Parts 1—9099)

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I Comptroller of the Currency, Department of the Treasury (Parts 1—199) II Federal Reserve System (Parts 200—299) III Federal Deposit Insurance Corporation (Parts 300—399) IV Export-Import Bank of the United States (Parts 400—499) V Office of Thrift Supervision, Department of the Treasury (Parts 500—599) VI Farm Credit Administration (Parts 600—699) VII National Credit Union Administration (Parts 700—799) VIII Federal Financing Bank (Parts 800—899) IX Federal Housing Finance Board (Parts 900—999) XI Federal Financial Institutions Examination Council (Parts 1100—1199) XIV Farm Credit System Insurance Corporation (Parts 1400—1499) XV Department of the Treasury (Parts 1500—1599) XVII Office of Federal Housing Enterprise Oversight, Department of Housing and Urban Development (Parts 1700—1799) XVIII Community Development Financial Institutions Fund, Depart- ment of the Treasury (Parts 1800—1899)

Title 13—Business Credit and Assistance

I Small Business Administration (Parts 1—199) III Economic Development Administration, Department of Com- merce (Parts 300—399) IV Emergency Steel Guarantee Loan Board (Parts 400—499) V Emergency Oil and Gas Guaranteed Loan Board (Parts 500—599)

Title 14—Aeronautics and Space

I Federal Aviation Administration, Department of Transportation (Parts 1—199) II Office of the Secretary, Department of Transportation (Aviation Proceedings) (Parts 200—399) III Commercial Space Transportation, Federal Aviation Adminis- tration, Department of Transportation (Parts 400—499) V National Aeronautics and Space Administration (Parts 1200— 1299) VI Air Transportation System Stabilization (Parts 1300—1399)

Title 15—Commerce and Foreign Trade

SUBTITLE A—OFFICE OF THE SECRETARY OF COMMERCE (PARTS 0— 29) SUBTITLE B—REGULATIONS RELATING TO COMMERCE AND FOREIGN TRADE I Bureau of the Census, Department of Commerce (Parts 30—199)

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II National Institute of Standards and Technology, Department of Commerce (Parts 200—299) III International Trade Administration, Department of Commerce (Parts 300—399) IV Foreign-Trade Zones Board, Department of Commerce (Parts 400—499) VII Bureau of Industry and Security, Department of Commerce (Parts 700—799) VIII Bureau of Economic Analysis, Department of Commerce (Parts 800—899) IX National Oceanic and Atmospheric Administration, Department of Commerce (Parts 900—999) XI Technology Administration, Department of Commerce (Parts 1100—1199) XIII East-West Foreign Trade Board (Parts 1300—1399) XIV Minority Business Development Agency (Parts 1400—1499) SUBTITLE C—REGULATIONS RELATING TO FOREIGN TRADE AGREE- MENTS XX Office of the United States Trade Representative (Parts 2000— 2099) SUBTITLE D—REGULATIONS RELATING TO TELECOMMUNICATIONS AND INFORMATION XXIII National Telecommunications and Information Administration, Department of Commerce (Parts 2300—2399)

Title 16—Commercial Practices

I Federal Trade Commission (Parts 0—999) II Consumer Product Safety Commission (Parts 1000—1799)

Title 17—Commodity and Securities Exchanges

I Commodity Futures Trading Commission (Parts 1—199) II Securities and Exchange Commission (Parts 200—399) IV Department of the Treasury (Parts 400—499)

Title 18—Conservation of Power and Water Resources

I Federal Energy Regulatory Commission, Department of Energy (Parts 1—399) III Delaware River Basin Commission (Parts 400—499) VI Water Resources Council (Parts 700—799) VIII Susquehanna River Basin Commission (Parts 800—899) XIII Tennessee Valley Authority (Parts 1300—1399)

Title 19—Customs Duties

I United States Customs Service, Department of the Treasury (Parts 1—199)

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II United States International Trade Commission (Parts 200—299) III International Trade Administration, Department of Commerce (Parts 300—399)

Title 20—Employees’ Benefits

I Office of Workers’ Compensation Programs, Department of Labor (Parts 1—199) II Railroad Retirement Board (Parts 200—399) III Social Security Administration (Parts 400—499) IV Employees’ Compensation Appeals Board, Department of Labor (Parts 500—599) V Employment and Training Administration, Department of Labor (Parts 600—699) VI Employment Standards Administration, Department of Labor (Parts 700—799) VII Benefits Review Board, Department of Labor (Parts 800—899) VIII Joint Board for the Enrollment of Actuaries (Parts 900—999) IX Office of the Assistant Secretary for Veterans’ Employment and Training, Department of Labor (Parts 1000—1099)

Title 21—Food and Drugs

I Food and Drug Administration, Department of Health and Human Services (Parts 1—1299) II Drug Enforcement Administration, Department of Justice (Parts 1300—1399) III Office of National Drug Control Policy (Parts 1400—1499)

Title 22—Foreign Relations

I Department of State (Parts 1—199) II Agency for International Development (Parts 200—299) III Peace Corps (Parts 300—399) IV International Joint Commission, United States and Canada (Parts 400—499) V Broadcasting Board of Governors (Parts 500—599) VII Overseas Private Investment Corporation (Parts 700—799) IX Foreign Service Grievance Board (Parts 900—999) X Inter-American Foundation (Parts 1000—1099) XI International Boundary and Water Commission, United States and Mexico, United States Section (Parts 1100—1199) XII United States International Development Cooperation Agency (Parts 1200—1299) XIV Foreign Service Labor Relations Board; Federal Labor Relations Authority; General Counsel of the Federal Labor Relations Authority; and the Foreign Service Impasse Disputes Panel (Parts 1400—1499)

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XV African Development Foundation (Parts 1500—1599) XVI Japan-United States Friendship Commission (Parts 1600—1699) XVII United States Institute of Peace (Parts 1700—1799)

Title 23—Highways

I Federal Highway Administration, Department of Transportation (Parts 1—999) II National Highway Traffic Safety Administration and Federal Highway Administration, Department of Transportation (Parts 1200—1299) III National Highway Traffic Safety Administration, Department of Transportation (Parts 1300—1399)

Title 24—Housing and Urban Development

SUBTITLE A—OFFICE OF THE SECRETARY, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (PARTS 0—99) SUBTITLE B—REGULATIONS RELATING TO HOUSING AND URBAN DE- VELOPMENT I Office of Assistant Secretary for Equal Opportunity, Department of Housing and Urban Development (Parts 100—199) II Office of Assistant Secretary for Housing-Federal Housing Com- missioner, Department of Housing and Urban Development (Parts 200—299) III Government National Mortgage Association, Department of Housing and Urban Development (Parts 300—399) IV Office of Housing and Office of Multifamily Housing Assistance Restructuring, Department of Housing and Urban Develop- ment (Parts 400—499) V Office of Assistant Secretary for Community Planning and De- velopment, Department of Housing and Urban Development (Parts 500—599) VI Office of Assistant Secretary for Community Planning and De- velopment, Department of Housing and Urban Development (Parts 600—699) [Reserved] VII Office of the Secretary, Department of Housing and Urban Devel- opment (Housing Assistance Programs and Public and Indian Housing Programs) (Parts 700—799) VIII Office of the Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Develop- ment (Section 8 Housing Assistance Programs, Section 202 Di- rect Loan Program, Section 202 Supportive Housing for the El- derly Program and Section 811 Supportive Housing for Persons With Disabilities Program) (Parts 800—899) IX Office of Assistant Secretary for Public and Indian Housing, De- partment of Housing and Urban Development (Parts 900—1699) X Office of Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Develop- ment (Interstate Land Sales Registration Program) (Parts 1700—1799)

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XII Office of Inspector General, Department of Housing and Urban Development (Parts 2000—2099) XX Office of Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Develop- ment (Parts 3200—3899) XXV Neighborhood Reinvestment Corporation (Parts 4100—4199)

Title 25—Indians

I Bureau of Indian Affairs, Department of the Interior (Parts 1— 299) II Indian Arts and Crafts Board, Department of the Interior (Parts 300—399) III National Indian Gaming Commission, Department of the Inte- rior (Parts 500—599) IV Office of Navajo and Hopi Indian Relocation (Parts 700—799) V Bureau of Indian Affairs, Department of the Interior, and Indian Health Service, Department of Health and Human Services (Part 900) VI Office of the Assistant Secretary-Indian Affairs, Department of the Interior (Parts 1000—1199) VII Office of the Special Trustee for American Indians, Department of the Interior (Part 1200)

Title 26—Internal Revenue

I Internal Revenue Service, Department of the Treasury (Parts 1— 899)

Title 27—Alcohol, Tobacco Products and Firearms

I Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury (Parts 1—299) II Bureau of Alcohol, Tobacco, Firearms, and Explosives, Depart- ment of Justice (Parts 400—699)

Title 28—Judicial Administration

I Department of Justice (Parts 0—299) III Federal Prison Industries, Inc., Department of Justice (Parts 300—399) V Bureau of Prisons, Department of Justice (Parts 500—599) VI Offices of Independent Counsel, Department of Justice (Parts 600—699) VII Office of Independent Counsel (Parts 700—799) VIII Court Services and Offender Supervision Agency for the District of Columbia (Parts 800—899) IX National Crime Prevention and Privacy Compact Council (Parts 900—999)

491

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XI Department of Justice and Department of State (Parts 1100— 1199)

Title 29—Labor

SUBTITLE A—OFFICE OF THE SECRETARY OF LABOR (PARTS 0—99) SUBTITLE B—REGULATIONS RELATING TO LABOR I National Labor Relations Board (Parts 100—199) II Office of Labor-Management Standards, Department of Labor (Parts 200—299) III National Railroad Adjustment Board (Parts 300—399) IV Office of Labor-Management Standards, Department of Labor (Parts 400—499) V Wage and Hour Division, Department of Labor (Parts 500—899) IX Construction Industry Collective Bargaining Commission (Parts 900—999) X National Mediation Board (Parts 1200—1299) XII Federal Mediation and Conciliation Service (Parts 1400—1499) XIV Equal Employment Opportunity Commission (Parts 1600—1699) XVII Occupational Safety and Health Administration, Department of Labor (Parts 1900—1999) XX Occupational Safety and Health Review Commission (Parts 2200—2499) XXV Employee Benefits Security Administration, Department of Labor (Parts 2500—2599) XXVII Federal Mine Safety and Health Review Commission (Parts 2700—2799) XL Pension Benefit Guaranty Corporation (Parts 4000—4999)

Title 30—Mineral Resources

I Mine Safety and Health Administration, Department of Labor (Parts 1—199) II Minerals Management Service, Department of the Interior (Parts 200—299) III Board of Surface Mining and Reclamation Appeals, Department of the Interior (Parts 300—399) IV Geological Survey, Department of the Interior (Parts 400—499) VII Office of Surface Mining Reclamation and Enforcement, Depart- ment of the Interior (Parts 700—999)

Title 31—Money and Finance: Treasury

SUBTITLE A—OFFICE OF THE SECRETARY OF THE TREASURY (PARTS 0—50) SUBTITLE B—REGULATIONS RELATING TO MONEY AND FINANCE I Monetary Offices, Department of the Treasury (Parts 51—199) II Fiscal Service, Department of the Treasury (Parts 200—399)

492

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IV Secret Service, Department of the Treasury (Parts 400—499) V Office of Foreign Assets Control, Department of the Treasury (Parts 500—599) VI Bureau of Engraving and Printing, Department of the Treasury (Parts 600—699) VII Federal Law Enforcement Training Center, Department of the Treasury (Parts 700—799) VIII Office of International Investment, Department of the Treasury (Parts 800—899) IX Federal Claims Collection Standards (Department of the Treas- ury—Department of Justice) (Parts 900—999)

Title 32—National Defense

SUBTITLE A—DEPARTMENT OF DEFENSE I Office of the Secretary of Defense (Parts 1—399) V Department of the Army (Parts 400—699) VI Department of the Navy (Parts 700—799) VII Department of the Air Force (Parts 800—1099) SUBTITLE B—OTHER REGULATIONS RELATING TO NATIONAL DE- FENSE XII Defense Logistics Agency (Parts 1200—1299) XVI Selective Service System (Parts 1600—1699) XVIII National Counterintelligence Center (Parts 1800—1899) XIX Central Intelligence Agency (Parts 1900—1999) XX Information Security Oversight Office, National Archives and Records Administration (Parts 2000—2099) XXI National Security Council (Parts 2100—2199) XXIV Office of Science and Technology Policy (Parts 2400—2499) XXVII Office for Micronesian Status Negotiations (Parts 2700—2799) XXVIII Office of the Vice President of the United States (Parts 2800— 2899)

Title 33—Navigation and Navigable Waters

I Coast Guard, Department of Transportation (Parts 1—199) II Corps of Engineers, Department of the Army (Parts 200—399) IV Saint Lawrence Seaway Development Corporation, Department of Transportation (Parts 400—499)

Title 34—Education

SUBTITLE A—OFFICE OF THE SECRETARY, DEPARTMENT OF EDU- CATION (PARTS 1—99) SUBTITLE B—REGULATIONS OF THE OFFICES OF THE DEPARTMENT OF EDUCATION I Office for Civil Rights, Department of Education (Parts 100—199)

493

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II Office of Elementary and Secondary Education, Department of Education (Parts 200—299) III Office of Special Education and Rehabilitative Services, Depart- ment of Education (Parts 300—399) IV Office of Vocational and Adult Education, Department of Edu- cation (Parts 400—499) V Office of Bilingual Education and Minority Languages Affairs, Department of Education (Parts 500—599) VI Office of Postsecondary Education, Department of Education (Parts 600—699) XI National Institute for Literacy (Parts 1100—1199) SUBTITLE C—REGULATIONS RELATING TO EDUCATION XII National Council on Disability (Parts 1200—1299)

Title 35—Panama Canal

I Panama Canal Regulations (Parts 1—299)

Title 36—Parks, Forests, and Public Property

I National Park Service, Department of the Interior (Parts 1—199) II Forest Service, Department of Agriculture (Parts 200—299) III Corps of Engineers, Department of the Army (Parts 300—399) IV American Battle Monuments Commission (Parts 400—499) V Smithsonian Institution (Parts 500—599) VII Library of Congress (Parts 700—799) VIII Advisory Council on Historic Preservation (Parts 800—899) IX Pennsylvania Avenue Development Corporation (Parts 900—999) X Presidio Trust (Parts 1000—1099) XI Architectural and Transportation Barriers Compliance Board (Parts 1100—1199) XII National Archives and Records Administration (Parts 1200—1299) XV Oklahoma City National Memorial Trust (Part 1501) XVI Morris K. Udall Scholarship and Excellence in National Environ- mental Policy Foundation (Parts 1600—1699)

Title 37—Patents, Trademarks, and Copyrights

I United States Patent and Trademark Office, Department of Commerce (Parts 1—199) II Copyright Office, Library of Congress (Parts 200—299) IV Assistant Secretary for Technology Policy, Department of Com- merce (Parts 400—499) V Under Secretary for Technology, Department of Commerce (Parts 500—599)

494

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I Department of Veterans Affairs (Parts 0—99)

Title 39—Postal Service

I United States Postal Service (Parts 1—999) III Postal Rate Commission (Parts 3000—3099)

Title 40—Protection of Environment

I Environmental Protection Agency (Parts 1—799) IV Environmental Protection Agency and Department of Justice (Parts 1400—1499) V Council on Environmental Quality (Parts 1500—1599) VI Chemical Safety and Hazard Investigation Board (Parts 1600— 1699) VII Environmental Protection Agency and Department of Defense; Uniform National Discharge Standards for Vessels of the Armed Forces (Parts 1700—1799)

Title 41—Public Contracts and Property Management

SUBTITLE B—OTHER PROVISIONS RELATING TO PUBLIC CONTRACTS 50 Public Contracts, Department of Labor (Parts 50–1—50–999) 51 Committee for Purchase From People Who Are Blind or Severely Disabled (Parts 51–1—51–99) 60 Office of Federal Contract Compliance Programs, Equal Employ- ment Opportunity, Department of Labor (Parts 60–1—60–999) 61 Office of the Assistant Secretary for Veterans’ Employment and Training Service, Department of Labor (Parts 61–1—61–999) SUBTITLE C—FEDERAL PROPERTY MANAGEMENT REGULATIONS SYSTEM 101 Federal Property Management Regulations (Parts 101–1—101–99) 102 Federal Management Regulation (Parts 102–1—102–299) 105 General Services Administration (Parts 105–1—105–999) 109 Department of Energy Property Management Regulations (Parts 109–1—109–99) 114 Department of the Interior (Parts 114–1—114–99) 115 Environmental Protection Agency (Parts 115–1—115–99) 128 Department of Justice (Parts 128–1—128–99) SUBTITLE D—OTHER PROVISIONS RELATING TO PROPERTY MANAGE- MENT [RESERVED] SUBTITLE E—FEDERAL INFORMATION RESOURCES MANAGEMENT REGULATIONS SYSTEM 201 Federal Information Resources Management Regulation (Parts 201–1—201–99) [Reserved] SUBTITLE F—FEDERAL TRAVEL REGULATION SYSTEM 300 General (Parts 300–1—300–99) 301 Temporary Duty (TDY) Travel Allowances (Parts 301–1—301–99)

495

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302 Relocation Allowances (Parts 302–1—302–99) 303 Payment of Expenses Connected with the Death of Certain Em- ployees (Part 303–70) 304 Payment of Travel Expenses from a Non-Federal Source (Parts 304–1—304–99)

Title 42—Public Health

I Public Health Service, Department of Health and Human Serv- ices (Parts 1—199) IV Centers for Medicare & Medicaid Services, Department of Health and Human Services (Parts 400—499) V Office of Inspector General-Health Care, Department of Health and Human Services (Parts 1000—1999)

Title 43—Public Lands: Interior

SUBTITLE A—OFFICE OF THE SECRETARY OF THE INTERIOR (PARTS 1—199) SUBTITLE B—REGULATIONS RELATING TO PUBLIC LANDS I Bureau of Reclamation, Department of the Interior (Parts 200— 499) II Bureau of Land Management, Department of the Interior (Parts 1000—9999) III Utah Reclamation Mitigation and Conservation Commission (Parts 10000—10005)

Title 44—Emergency Management and Assistance

I Federal Emergency Management Agency, Department of Home- land Security (Parts 0—399) IV Department of Commerce and Department of Transportation (Parts 400—499)

Title 45—Public Welfare

SUBTITLE A—DEPARTMENT OF HEALTH AND HUMAN SERVICES (PARTS 1—199) SUBTITLE B—REGULATIONS RELATING TO PUBLIC WELFARE II Office of Family Assistance (Assistance Programs), Administra- tion for Children and Families, Department of Health and Human Services (Parts 200—299) III Office of Child Support Enforcement (Child Support Enforce- ment Program), Administration for Children and Families, Department of Health and Human Services (Parts 300—399) IV Office of Refugee Resettlement, Administration for Children and Families Department of Health and Human Services (Parts 400—499) V Foreign Claims Settlement Commission of the United States, Department of Justice (Parts 500—599)

496

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VI National Science Foundation (Parts 600—699) VII Commission on Civil Rights (Parts 700—799) VIII Office of Personnel Management (Parts 800—899) X Office of Community Services, Administration for Children and Families, Department of Health and Human Services (Parts 1000—1099) XI National Foundation on the Arts and the Humanities (Parts 1100—1199) XII Corporation for National and Community Service (Parts 1200— 1299) XIII Office of Human Development Services, Department of Health and Human Services (Parts 1300—1399) XVI Legal Services Corporation (Parts 1600—1699) XVII National Commission on Libraries and Information Science (Parts 1700—1799) XVIII Harry S. Truman Scholarship Foundation (Parts 1800—1899) XXI Commission on Fine Arts (Parts 2100—2199) XXIII Arctic Research Commission (Part 2301) XXIV James Madison Memorial Fellowship Foundation (Parts 2400— 2499) XXV Corporation for National and Community Service (Parts 2500— 2599)

Title 46—Shipping

I Coast Guard, Department of Transportation (Parts 1—199) II Maritime Administration, Department of Transportation (Parts 200—399) III Coast Guard (Great Lakes Pilotage), Department of Transpor- tation (Parts 400—499) IV Federal Maritime Commission (Parts 500—599)

Title 47—Telecommunication

I Federal Communications Commission (Parts 0—199) II Office of Science and Technology Policy and National Security Council (Parts 200—299) III National Telecommunications and Information Administration, Department of Commerce (Parts 300—399)

Title 48—Federal Acquisition Regulations System

1 Federal Acquisition Regulation (Parts 1—99) 2 Department of Defense (Parts 200—299) 3 Department of Health and Human Services (Parts 300—399) 4 Department of Agriculture (Parts 400—499) 5 General Services Administration (Parts 500—599) 6 Department of State (Parts 600—699)

497

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7 United States Agency for International Development (Parts 700—799) 8 Department of Veterans Affairs (Parts 800—899) 9 Department of Energy (Parts 900—999) 10 Department of the Treasury (Parts 1000—1099) 12 Department of Transportation (Parts 1200—1299) 13 Department of Commerce (Parts 1300—1399) 14 Department of the Interior (Parts 1400—1499) 15 Environmental Protection Agency (Parts 1500—1599) 16 Office of Personnel Management Federal Employees Health Ben- efits Acquisition Regulation (Parts 1600—1699) 17 Office of Personnel Management (Parts 1700—1799) 18 National Aeronautics and Space Administration (Parts 1800— 1899) 19 Broadcasting Board of Governors (Parts 1900—1999) 20 Nuclear Regulatory Commission (Parts 2000—2099) 21 Office of Personnel Management, Federal Employees Group Life Insurance Federal Acquisition Regulation (Parts 2100—2199) 23 Social Security Administration (Parts 2300—2399) 24 Department of Housing and Urban Development (Parts 2400— 2499) 25 National Science Foundation (Parts 2500—2599) 28 Department of Justice (Parts 2800—2899) 29 Department of Labor (Parts 2900—2999) 34 Department of Education Acquisition Regulation (Parts 3400— 3499) 35 Panama Canal Commission (Parts 3500—3599) 44 Federal Emergency Management Agency (Parts 4400—4499) 51 Department of the Army Acquisition Regulations (Parts 5100— 5199) 52 Department of the Navy Acquisition Regulations (Parts 5200— 5299) 53 Department of the Air Force Federal Acquisition Regulation Supplement (Parts 5300—5399) 54 Defense Logistics Agency, Department of Defense (Parts 5400— 5499) 57 African Development Foundation (Parts 5700—5799) 61 General Services Administration Board of Contract Appeals (Parts 6100—6199) 63 Department of Transportation Board of Contract Appeals (Parts 6300—6399) 99 Cost Accounting Standards Board, Office of Federal Procure- ment Policy, Office of Management and Budget (Parts 9900— 9999)

498

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SUBTITLE A—OFFICE OF THE SECRETARY OF TRANSPORTATION (PARTS 1—99) SUBTITLE B—OTHER REGULATIONS RELATING TO TRANSPORTATION I Research and Special Programs Administration, Department of Transportation (Parts 100—199) II Federal Railroad Administration, Department of Transportation (Parts 200—299) III Federal Motor Carrier Safety Administration, Department of Transportation (Parts 300—399) IV Coast Guard, Department of Transportation (Parts 400—499) V National Highway Traffic Safety Administration, Department of Transportation (Parts 500—599) VI Federal Transit Administration, Department of Transportation (Parts 600—699) VII National Railroad Passenger Corporation (AMTRAK) (Parts 700—799) VIII National Transportation Safety Board (Parts 800—999) X Surface Transportation Board, Department of Transportation (Parts 1000—1399) XI Bureau of Transportation Statistics, Department of Transpor- tation (Parts 1400—1499) XII Transportation Security Administration, Department of Trans- portation (Parts 1500—1599)

Title 50—Wildlife and Fisheries

I United States Fish and Wildlife Service, Department of the Inte- rior (Parts 1—199) II National Marine Fisheries Service, National Oceanic and Atmos- pheric Administration, Department of Commerce (Parts 200— 299) III International Fishing and Related Activities (Parts 300—399) IV Joint Regulations (United States Fish and Wildlife Service, De- partment of the Interior and National Marine Fisheries Serv- ice, National Oceanic and Atmospheric Administration, De- partment of Commerce); Endangered Species Committee Reg- ulations (Parts 400—499) V Marine Mammal Commission (Parts 500—599) VI Fishery Conservation and Management, National Oceanic and Atmospheric Administration, Department of Commerce (Parts 600—699)

CFR Index and Finding Aids

Subject/Agency Index List of Agency Prepared Indexes Parallel Tables of Statutory Authorities and Rules List of CFR Titles, Chapters, Subchapters, and Parts Alphabetical List of Agencies Appearing in the CFR

499

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CFR Title, Subtitle or Agency Chapter Administrative Committee of the Federal Register 1, I Advanced Research Projects Agency 32, I Advisory Council on Historic Preservation 36, VIII African Development Foundation 22, XV Federal Acquisition Regulation 48, 57 Agency for International Development, United States 22, II Federal Acquisition Regulation 48, 7 Agricultural Marketing Service 7, I, IX, X, XI Agricultural Research Service 7, V Agriculture Department 5, LXXIII Agricultural Marketing Service 7, I, IX, X, XI Agricultural Research Service 7, V Animal and Plant Health Inspection Service 7, III; 9, I Chief Financial Officer, Office of 7, XXX Commodity Credit Corporation 7, XIV Cooperative State Research, Education, and Extension 7, XXXIV Service Economic Research Service 7, XXXVII Energy, Office of 7, XXIX Environmental Quality, Office of 7, XXXI Farm Service Agency 7, VII, XVIII Federal Acquisition Regulation 48, 4 Federal Crop Insurance Corporation 7, IV Food and Nutrition Service 7, II Food Safety and Inspection Service 9, III Foreign Agricultural Service 7, XV Forest Service 36, II Grain Inspection, Packers and Stockyards Administration 7, VIII; 9, II Information Resources Management, Office of 7, XXVII Inspector General, Office of 7, XXVI National Agricultural Library 7, XLI National Agricultural Statistics Service 7, XXXVI Natural Resources Conservation Service 7, VI Operations, Office of 7, XXVIII Procurement and Property Management, Office of 7, XXXII Rural Business-Cooperative Service 7, XVIII, XLII Rural Development Administration 7, XLII Rural Housing Service 7, XVIII, XXXV Rural Telephone Bank 7, XVI Rural Utilities Service 7, XVII, XVIII, XLII Secretary of Agriculture, Office of 7, Subtitle A Transportation, Office of 7, XXXIII World Agricultural Outlook Board 7, XXXVIII Air Force Department 32, VII Federal Acquisition Regulation Supplement 48, 53 Air Transportation Stabilization Board 14, VI Alcohol and Tobacco Tax and Trade Bureau 27, I Alcohol, Tobacco, Firearms, and Explosives, Bureau of 27, II AMTRAK 49, VII American Battle Monuments Commission 36, IV American Indians, Office of the Special Trustee 25, VII Animal and Plant Health Inspection Service 7, III; 9, I Appalachian Regional Commission 5, IX

501

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502

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503

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504

VerDate jul<14>2003 00:43 Aug 07, 2003 Jkt 200138 PO 00000 Frm 00026 Fmt 8092 Sfmt 8092 Y:\SGML\200138B.XXX 200138B CFR Title, Subtitle or Agency Chapter Federal Management Regulation 41, 102 Federal Property Management Regulations 41, 101 Federal Travel Regulation System 41, Subtitle F General 41, 300 Payment From a Non-Federal Source for Travel Expenses 41, 304 Payment of Expenses Connected With the Death of Certain 41, 303 Employees Relocation Allowances 41, 302 Temporary Duty (TDY) Travel Allowances 41, 301 Geological Survey 30, IV Government Ethics, Office of 5, XVI Government National Mortgage Association 24, III Grain Inspection, Packers and Stockyards Administration 7, VIII; 9, II Harry S. Truman Scholarship Foundation 45, XVIII Health and Human Services, Department of 5, XLV; 45, Subtitle A Centers for Medicare & Medicaid Services 42, IV Child Support Enforcement, Office of 45, III Children and Families, Administration for 45, II, III, IV, X Community Services, Office of 45, X Family Assistance, Office of 45, II Federal Acquisition Regulation 48, 3 Food and Drug Administration 21, I Human Development Services, Office of 45, XIII Indian Health Service 25, V; 42, I Inspector General (Health Care), Office of 42, V Public Health Service 42, I Refugee Resettlement, Office of 45, IV Homeland Security, Department of 6, I Federal Emergency Management Agency 44, I Immigration and Naturalization 8, I Housing and Urban Development, Department of 5, LXV; 24, Subtitle B Community Planning and Development, Office of Assistant 24, V, VI Secretary for Equal Opportunity, Office of Assistant Secretary for 24, I Federal Acquisition Regulation 48, 24 Federal Housing Enterprise Oversight, Office of 12, XVII Government National Mortgage Association 24, III Housing—Federal Housing Commissioner, Office of 24, II, VIII, X, XX Assistant Secretary for Housing, Office of, and Multifamily Housing Assistance 24, IV Restructuring, Office of Inspector General, Office of 24, XII Public and Indian Housing, Office of Assistant Secretary for 24, IX Secretary, Office of 24, Subtitle A, VII Housing—Federal Housing Commissioner, Office of Assistant 24, II, VIII, X, XX Secretary for Housing, Office of, and Multifamily Housing Assistance 24, IV Restructuring, Office of Human Development Services, Office of 45, XIII Immigration and Naturalization 8, I Immigration Review, Executive Office for 8, V Independent Counsel, Office of 28, VII Indian Affairs, Bureau of 25, I, V Indian Affairs, Office of the Assistant Secretary 25, VI Indian Arts and Crafts Board 25, II Indian Health Service 25, V; 42, I Industry and Security, Bureau of 15, VII Information Resources Management, Office of 7, XXVII Information Security Oversight Office, National Archives and 32, XX Records Administration Inspector General Agriculture Department 7, XXVI Health and Human Services Department 42, V Housing and Urban Development Department 24, XII Institute of Peace, United States 22, XVII Inter-American Foundation 5, LXIII; 22, X Interior Department

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VerDate jul<14>2003 00:43 Aug 07, 2003 Jkt 200138 PO 00000 Frm 00027 Fmt 8092 Sfmt 8092 Y:\SGML\200138B.XXX 200138B CFR Title, Subtitle or Agency Chapter American Indians, Office of the Special Trustee 25, VII Endangered Species Committee 50, IV Federal Acquisition Regulation 48, 14 Federal Property Management Regulations System 41, 114 Fish and Wildlife Service, United States 50, I, IV Geological Survey 30, IV Indian Affairs, Bureau of 25, I, V Indian Affairs, Office of the Assistant Secretary 25, VI Indian Arts and Crafts Board 25, II Land Management, Bureau of 43, II Minerals Management Service 30, II National Indian Gaming Commission 25, III National Park Service 36, I Reclamation, Bureau of 43, I Secretary of the Interior, Office of 43, Subtitle A Surface Mining and Reclamation Appeals, Board of 30, III Surface Mining Reclamation and Enforcement, Office of 30, VII Internal Revenue Service 26, I International Boundary and Water Commission, United States 22, XI and Mexico, United States Section International Development, United States Agency for 22, II Federal Acquisition Regulation 48, 7 International Development Cooperation Agency, United 22, XII States International Fishing and Related Activities 50, III International Investment, Office of 31, VIII International Joint Commission, United States and Canada 22, IV International Organizations Employees Loyalty Board 5, V International Trade Administration 15, III; 19, III International Trade Commission, United States 19, II Interstate Commerce Commission 5, XL James Madison Memorial Fellowship Foundation 45, XXIV Japan–United States Friendship Commission 22, XVI Joint Board for the Enrollment of Actuaries 20, VIII Justice Department 5, XXVIII; 28, I, XI; 40, IV Alcohol, Tobacco, Firearms, and Explosives, Bureau of 27, II Drug Enforcement Administration 21, II Federal Acquisition Regulation 48, 28 Federal Claims Collection Standards 31, IX Federal Prison Industries, Inc. 28, III Foreign Claims Settlement Commission of the United 45, V States Immigration Review, Executive Office for 8, V Offices of Independent Counsel 28, VI Prisons, Bureau of 28, V Property Management Regulations 41, 128 Labor Department 5, XLII Benefits Review Board 20, VII Employee Benefits Security Administration 29, XXV Employees’ Compensation Appeals Board 20, IV Employment and Training Administration 20, V Employment Standards Administration 20, VI Federal Acquisition Regulation 48, 29 Federal Contract Compliance Programs, Office of 41, 60 Federal Procurement Regulations System 41, 50 Labor-Management Standards, Office of 29, II, IV Mine Safety and Health Administration 30, I Occupational Safety and Health Administration 29, XVII Public Contracts 41, 50 Secretary of Labor, Office of 29, Subtitle A Veterans’ Employment and Training Service, Office of the 41, 61; 20, IX Assistant Secretary for Wage and Hour Division 29, V Workers’ Compensation Programs, Office of 20, I Labor-Management Standards, Office of 29, II, IV Land Management, Bureau of 43, II

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VerDate jul<14>2003 00:43 Aug 07, 2003 Jkt 200138 PO 00000 Frm 00028 Fmt 8092 Sfmt 8092 Y:\SGML\200138B.XXX 200138B CFR Title, Subtitle or Agency Chapter Legal Services Corporation 45, XVI Library of Congress 36, VII Copyright Office 37, II Local Television Loan Guarantee Board 7, XX Management and Budget, Office of 5, III, LXXVII; 14, VI; 48, 99 Marine Mammal Commission 50, V Maritime Administration 46, II Merit Systems Protection Board 5, II Micronesian Status Negotiations, Office for 32, XXVII Mine Safety and Health Administration 30, I Minerals Management Service 30, II Minority Business Development Agency 15, XIV Miscellaneous Agencies 1, IV Monetary Offices 31, I Morris K. Udall Scholarship and Excellence in National 36, XVI Environmental Policy Foundation National Aeronautics and Space Administration 5, LIX; 14, V Federal Acquisition Regulation 48, 18 National Agricultural Library 7, XLI National Agricultural Statistics Service 7, XXXVI National and Community Service, Corporation for 45, XII, XXV National Archives and Records Administration 5, LXVI; 36, XII Information Security Oversight Office 32, XX National Bureau of Standards 15, II National Capital Planning Commission 1, IV National Commission for Employment Policy 1, IV National Commission on Libraries and Information Science 45, XVII National Council on Disability 34, XII National Counterintelligence Center 32, XVIII National Credit Union Administration 12, VII National Crime Prevention and Privacy Compact Council 28, IX National Drug Control Policy, Office of 21, III National Foundation on the Arts and the Humanities 45, XI National Highway Traffic Safety Administration 23, II, III; 49, V National Imagery and Mapping Agency 32, I National Indian Gaming Commission 25, III National Institute for Literacy 34, XI National Institute of Standards and Technology 15, II National Labor Relations Board 5, LXI; 29, I National Marine Fisheries Service 50, II, IV, VI National Mediation Board 29, X National Oceanic and Atmospheric Administration 15, IX; 50, II, III, IV, VI National Park Service 36, I National Railroad Adjustment Board 29, III National Railroad Passenger Corporation (AMTRAK) 49, VII National Science Foundation 5, XLIII; 45, VI Federal Acquisition Regulation 48, 25 National Security Council 32, XXI National Security Council and Office of Science and 47, II Technology Policy National Telecommunications and Information 15, XXIII; 47, III Administration National Transportation Safety Board 49, VIII National Weather Service 15, IX Natural Resources Conservation Service 7, VI Navajo and Hopi Indian Relocation, Office of 25, IV Navy Department 32, VI Federal Acquisition Regulation 48, 52 Neighborhood Reinvestment Corporation 24, XXV Northeast Interstate Low-Level Radioactive Waste 10, XVIII Commission Nuclear Regulatory Commission 5, XLVIII; 10, I Federal Acquisition Regulation 48, 20 Occupational Safety and Health Administration 29, XVII Occupational Safety and Health Review Commission 29, XX Offices of Independent Counsel 28, VI

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VerDate jul<14>2003 00:43 Aug 07, 2003 Jkt 200138 PO 00000 Frm 00029 Fmt 8092 Sfmt 8092 Y:\SGML\200138B.XXX 200138B CFR Title, Subtitle or Agency Chapter Oklahoma City National Memorial Trust 36, XV Operations Office 7, XXVIII Overseas Private Investment Corporation 5, XXXIII; 22, VII Panama Canal Commission 48, 35 Panama Canal Regulations 35, I Patent and Trademark Office, United States 37, I Payment From a Non-Federal Source for Travel Expenses 41, 304 Payment of Expenses Connected With the Death of Certain 41, 303 Employees Peace Corps 22, III Pennsylvania Avenue Development Corporation 36, IX Pension Benefit Guaranty Corporation 29, XL Personnel Management, Office of 5, I, XXXV; 45, VIII Federal Acquisition Regulation 48, 17 Federal Employees Group Life Insurance Federal 48, 21 Acquisition Regulation Federal Employees Health Benefits Acquisition Regulation 48, 16 Postal Rate Commission 5, XLVI; 39, III Postal Service, United States 5, LX; 39, I Postsecondary Education, Office of 34, VI President’s Commission on White House Fellowships 1, IV Presidential Documents 3 Presidio Trust 36, X Prisons, Bureau of 28, V Procurement and Property Management, Office of 7, XXXII Productivity, Technology and Innovation, Assistant 37, IV Secretary Public Contracts, Department of Labor 41, 50 Public and Indian Housing, Office of Assistant Secretary for 24, IX Public Health Service 42, I Railroad Retirement Board 20, II Reclamation, Bureau of 43, I Refugee Resettlement, Office of 45, IV Regional Action Planning Commissions 13, V Relocation Allowances 41, 302 Research and Special Programs Administration 49, I Rural Business-Cooperative Service 7, XVIII, XLII Rural Development Administration 7, XLII Rural Housing Service 7, XVIII, XXXV Rural Telephone Bank 7, XVI Rural Utilities Service 7, XVII, XVIII, XLII Saint Lawrence Seaway Development Corporation 33, IV Science and Technology Policy, Office of 32, XXIV Science and Technology Policy, Office of, and National 47, II Security Council Secret Service 31, IV Securities and Exchange Commission 17, II Selective Service System 32, XVI Small Business Administration 13, I Smithsonian Institution 36, V Social Security Administration 20, III; 48, 23 Soldiers’ and Airmen’s Home, United States 5, XI Special Counsel, Office of 5, VIII Special Education and Rehabilitative Services, Office of 34, III State Department 22, I; 28, XI Federal Acquisition Regulation 48, 6 Surface Mining and Reclamation Appeals, Board of 30, III Surface Mining Reclamation and Enforcement, Office of 30, VII Surface Transportation Board 49, X Susquehanna River Basin Commission 18, VIII Technology Administration 15, XI Technology Policy, Assistant Secretary for 37, IV Technology, Under Secretary for 37, V Tennessee Valley Authority 5, LXIX; 18, XIII Thrift Supervision Office, Department of the Treasury 12, V Trade Representative, United States, Office of 15, XX Transportation, Department of 5, L

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VerDate jul<14>2003 00:43 Aug 07, 2003 Jkt 200138 PO 00000 Frm 00030 Fmt 8092 Sfmt 8092 Y:\SGML\200138B.XXX 200138B CFR Title, Subtitle or Agency Chapter Coast Guard 33, I; 46, I; 49, IV Coast Guard (Great Lakes Pilotage) 46, III Commercial Space Transportation 14, III Contract Appeals, Board of 48, 63 Emergency Management and Assistance 44, IV Federal Acquisition Regulation 48, 12 Federal Aviation Administration 14, I Federal Highway Administration 23, I, II Federal Motor Carrier Safety Administration 49, III Federal Railroad Administration 49, II Federal Transit Administration 49, VI Maritime Administration 46, II National Highway Traffic Safety Administration 23, II, III; 49, V Research and Special Programs Administration 49, I Saint Lawrence Seaway Development Corporation 33, IV Secretary of Transportation, Office of 14, II; 49, Subtitle A Surface Transportation Board 49, X Transportation Security Administration 49, XII Transportation Statistics Bureau 49, XI Transportation, Office of 7, XXXIII Transportation Security Administration 49, XII Transportation Statistics Bureau 49, XI Travel Allowances, Temporary Duty (TDY) 41, 301 Treasury Department 5, XXI; 12, XV; 17, IV; 31, IX Alcohol and Tobacco Tax and Trade Bureau 27, I Community Development Financial Institutions Fund 12, XVIII Comptroller of the Currency 12, I Customs Service, United States 19, I Engraving and Printing, Bureau of 31, VI Federal Acquisition Regulation 48, 10 Federal Law Enforcement Training Center 31, VII Fiscal Service 31, II Foreign Assets Control, Office of 31, V Internal Revenue Service 26, I International Investment, Office of 31, VIII Monetary Offices 31, I Secret Service 31, IV Secretary of the Treasury, Office of 31, Subtitle A Thrift Supervision, Office of 12, V Truman, Harry S. Scholarship Foundation 45, XVIII United States and Canada, International Joint Commission 22, IV United States and Mexico, International Boundary and Water 22, XI Commission, United States Section Utah Reclamation Mitigation and Conservation Commission 43, III Veterans Affairs Department 38, I Federal Acquisition Regulation 48, 8 Veterans’ Employment and Training Service, Office of the 41, 61; 20, IX Assistant Secretary for Vice President of the United States, Office of 32, XXVIII Vocational and Adult Education, Office of 34, IV Wage and Hour Division 29, V Water Resources Council 18, VI Workers’ Compensation Programs, Office of 20, I World Agricultural Outlook Board 7, XXXVIII

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VerDate jul<14>2003 00:43 Aug 07, 2003 Jkt 200138 PO 00000 Frm 00031 Fmt 8092 Sfmt 8092 Y:\SGML\200138B.XXX 200138B VerDate jul<14>2003 00:43 Aug 07, 2003 Jkt 200138 PO 00000 Frm 00032 Fmt 8092 Sfmt 8092 Y:\SGML\200138B.XXX 200138B List of CFR Sections Affected All changes in this volume of the Code of Federal Regulations which were made by documents published in the FEDERAL REGISTER since Jan- uary 1, 2001, are enumerated in the following list. Entries indicate the nature of the changes effected. Page numbers refer to Federal Register pages. The user should consult the entries for chapters and parts as well as sections for revisions. For the period before January 1, 2001, see the ‘‘List of CFR Sections Affected, 1949–1963, 1964–1972, 1973–1985, and 1986–2000’’ published in 11 separate volumes.

2001 39 CFR—Continued 66 FR Page 39 CFR 66 FR Chapter I—Continued Page 501.23 Redesignated as 501.24; new Chapter I 501.23 redesignated from 20 Regulation at 65 FR 77077 eff. 501.22 ...... 55097 date delayed ...... 19095 501.24 Redesignated as 501.25; new IMM amended; incorporation by 501.24 redesignated from reference ...... 21286, 29704, 65780 501.23 ...... 55097 IMM amended; incorporation by 501.25 Redesignated as 501.26; new reference; interim...42112, 53089, 64353 501.25 redesignated from 501.24 ...... 55097 111 (f) table amended ...... 8370 501.26 Redesignated as 501.27; new DMM amended; incorporation by 501.26 redesignated from reference ...... 9510, 16130, 16131, 28660, 501.25 ...... 55097 30065, 33473, 37151, 56433, 56437, 501.27 Redesignated as 501.28; new 56995,58945 501.27 redesignated from DMM amended; incorporation by 501.26 ...... 55097 reference; eff. 7–1–01 ...... 29038 501.28 Redesignated as 501.29; new 111.5 Revised ...... 8370 501.28 redesignated from 266.9 (b)(1)(vii), (2) introductory 501.27 ...... 55097 text, (i), (ii) and (iii) revised; 501.29 Redesignated as 501.30; new (b)(2)(viii) added ...... 40891 501.29 redesignated from 501 (Subchapter G) Heading re- 501.28 ...... 55097 vised...... 31826 501.30 Redesignated from 501.18 Redesignated as 501.19; new 501.29 ...... 55097 501.18 added...... 55097 551 Added ...... 31826 501.19 Redesignated as 501.20; new 960.6 (b) amended ...... 55577 501.19 redesignated from 960.7 (a) amended ...... 55577 501.18 ...... 55097 Chapter III 501.20 Redesignated as 501.21; new 3000.735–103 Revised ...... 32545 501.20 redesignated from 3001.57 Added ...... 54438 501.19 ...... 55097 3001.58 Added ...... 54438 501.21 Redesignated as 501.22; new 3001.59 Added ...... 54438 501.21 redesignated from 3001.60 Added ...... 54438 501.20 ...... 55097 3001.69 Added ...... 54440 501.22 (s) and (t) added ...... 20745 3001.69a Added ...... 54440 Redesignated as 501.23; new 501.22 3001.69b Added ...... 54440 redesignated from 501.21...... 55097 3001.69c Added ...... 54440

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39 CFR—Continued 66 FR 39 CFR—Continued 67 FR Page Page Chapter III—Continued Chapter I—Continued 3001.161—3001.166 (Subpart I) (c)(i) and (ii) correctly des- Added ...... 54441 ignated as (c)(1) and (2) ...... 71843 3001.171—3001.176 (Subpart J) 501.23 (g) and (h) revised ...... 69138 Added ...... 54443 551 Authority citation revised...... 5215 3001.181—3001.182 (Subpart K) 551.1 Revised ...... 5215 Added ...... 54444 551.5 (a) revised ...... 5215 551.6 (a) revised ...... 5216 2002 551.8 (b), (c) and (d) introductory text revised ...... 5216 39 CFR 67 FR Page 927 Revised ...... 50353 952.5 Amended ...... 62179 Chapter I 952.33 Amended...... 62179 3 Authority citation revised...... 2135 957.2 Amended ...... 62179 3.4 (i) revised; (j) added ...... 2135 958.3 (d) amended ...... 62179 20 IMM amended; incorporation 960.3 (b) amended ...... 62179 by reference ...... 3859758945 962.2 (d) and (m) revised...... 62179 111 DMM amended; incorporation 962.12 (f)(1) amended ...... 62179 by reference ...8720, 10620, 14865, 18698, 962.13 (f)(2) amended ...... 62179 20645, 30572, 40167, 45063, 53457, 53881, 63551, 65500, 66056, 78178 962.21 (b)(4) amended...... 62179 Authority citation revised ...... 8720 964.1 Amended ...... 62179 111.3 (f) table amended ...... 46875 964.2 Amended ...... 62179 111.5 Revised ...... 46875 965.3 Amended ...... 62179 224.3 (a) and (c) revised; (b)(6) and Chapter III (d) removed; (b)(7) and (8) re- 3001.6 (b) and (c) revised ...... 67559 designated as (b)(6) and (7)...... 16024 3001.9 Revised ...... 67559 224.4 (b)(1) and (2) amended...... 16024 3001.10 Revised ...... 67559 229.2 (b)(1) amended ...... 16024 3001.11 Revised ...... 67559 230 Added ...... 16025 3001.12 Revised ...... 67559 233 Heading revised...... 16024 3001.13 Revised ...... 67559 233.1 (c) revised; (d) amended...... 16024 3001.20 (c) revised...... 67561 255 Revised ...... 75814 3001.20a (a) revised...... 67561 265.6 (d) introductory text and (2) 3001.26 (a) through (c) and (e) re- revised; (d)(3) through (d)(8) revised...... 67561 designated as (d)(4) through 3001.27 (a) through (c) and (e) re- (d)(9); new (d)(3) added...... 46393 vised...... 67562 266.6 (a)(1) amended ...... 16024 3001.28 (a) through (c) and (e) re- 266.9 (b)(7) added ...... 79859 vised...... 67562 273.2 (c) revised...... 16024 3001.30 (e)(2) and (3) revised ...... 67563 501.2 Introductory text, (c) and 3001.31 (b)(2)(iv) amended...... 67563 (d) revised...... 69479 3001.42 (a) revised...... 67563

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2003 39 CFR—Continued 68 FR Page (Regulations published from January 1, Chapter I—Continued 2003, through July 1, 2003) 964.6 Amended; CFR correction ...... 19152 39 CFR 68 FR Page Chapter III Chapter I 3001.9 (e) added ...... 47 3001.20b (a), (b) and (c) redesig- 6.1 Revised ...... 28773 nated as (b), (c) and (d); new (a) 111 DMM amended; incorporation added ...... 47 by reference.....4715, 9008, 15056, 33862, 3001.59 (c) and (e)(4) revised ...... 12589 34807 3001.69b (b), (c), and (d) revised ...... 12590 501.22 Revised ...... 2698 3001.163 (b), (c), and (d) revised...... 12590 501.28 Revised ...... 2699 3001.173 (b), (c), and (d) revised...... 12590 Æ

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